WASHINGTON, 11 October: The Board of the World Bank Thursday discussed a new Country Partnership Strategy (CPS) for Nicaragua, with project and investment loans and credits by the International Development Association (IDA) concessional lending arm of the Bank to assist the poorest countries.
The aid for the Central American country will total 240 million US dollar (1,27 milliarder DKR) for five years from 2008 to 2012.
– With a record of sound macroeconomic policy, Nicaragua has the potential and resources to grow its way out of poverty, said Jane Armitage, Country Director for Nicaragua at the World Bank, adding: – Through this new strategy, our aim is help Nicaragua build a stronger economy and improve social equity and opportunity for all.
The new strategy is closely aligned to the Governments priorities and its evolving poverty reduction strategy structured around four strategic objectives which are:
– reactivating the economy, stimulating productivity and competitiveness;
– human capital development – improving social equity and opportunity,
– infrastructure and sustainable development;
– strengthening governance and accountability by modernizing state institutions and promoting citizen participation.
Specifically, budgetary support and analytical work would further public sector modernization, improve the investment climate and ensure better targeting and quality of social sector social spending.
Additionally, new investment operations are planned in urban and rural water and sanitation programs, public sector management, land administration and rural roads, and small and medium enterprise (SME) development.
– Our aim is to make sure that Nicaragua receives continued strong donor support from the International Development Association and the donor community, said Joseph Owen, World Bank Country Manager in Nicaragua.
– The Bank also intends to support Nicaragua to cope with the emergency reconstruction needs of the north Atlantic coast in the aftermath of hurricane Felix with a credit of 17 million dollar. I am confident that the new partnership strategy will help to reduce poverty and create wealth that is broadly shared by all citizens, said he.
The Bank currently has a total of 11 projects in Nicaragua, for 214,6 million dollar total net commitments, with 4 million in support by the Global Environment Facility.
The new strategy will be supported by the International Finance Corporation (IFC), the Banks private sector arm. IFCs strategy aims to help accelerate private sector development and help facilitate Nicaraguans to take advantage of globalization and free trade agreements, supporting projects at both the regional and country levels.
The news of this important announcement comes two weeks after the Executive Board of Directors and the new President Robert Zoellick of the World Bank Group (WBG) took another crucial step with the decision to contribute a record sum of 3,5 billion dollar of its own income to grants and credits for the worlds poorest countries while completing the 15th replenishment (genopfyldning) of IDA.
This contribution is more than double the 1,5 billion dollar pledged by the World Bank Group for IDA 14 in 2005. In Latin America, recipient countries include Bolivia, Guyana, Haiti, Honduras and Nicaragua.
For more information on the Banks work in Nicaragua, please visit: www.worldbank.org/ni
Kilde: Verdensbankens website
