The World Bank has adopted a new Country Assistance Strategy (CAS) for Guatemala, which projects financial assistance of up to 780 million US dollar (4,44 milliarder DKR) between 2005 and 2008, in addition to knowledge sharing and advisory services.
– The current policy environment in Guatemala is a window of opportunity to move forward on a more inclusive, accelerated growth and poverty reduction path, said Jane Armitage, the World Banks Country Director for Central America, adding:
– The new assistance strategy will support Guatemalas own “Vamos Guatemala!” agenda with lending and analytical, technical and capacity-building assistance to accelerate broad-based growth, reduce inequality and poverty, and strengthen governance.
Guatemala in Central America continues to suffer from persistent poverty and inequality. In 2000, the share of Guatemalans living in poverty was 56 percent for the overall population and 76 percent for indigenous groups.
In order to reduce extreme poverty by half between 1990 and 2015 and thus accomplish the first of the Millennium Development Goals, Guatemala needs to increase growth (by approximately 5 percent per annum in real terms) and raise public spending on human development and infrastructure investments that facilitate poor peoples participation in economic growth.
To support these aims, the new assistance strategy has been developed in close collaboration with the Government and has benefited from wide consultations with civil society, the international donor community, think tanks, the private sector, and academia.
The strategy will support a new assistance program of between 460 million and 780 million US dollar, as well as the Banks current portfolio of projects in Guatemala. The porfolio consists of 11 investment projects and a financial sector adjustment loan, totaling about 525 million dollar (of which 255 million dollar is still available).
The new assistance program will be aimed at the following objectives:
– To support growth and the investment climate, public expenditures and governance, the strategy projects a series of Development Policy Loans.
– To reduce poverty and inequality and continue to strengthen public institutions, the Bank is targeting an investment program of five operations in education, nutrition and maternal/child health, local and rural development (including environment), land administration, and public sector management.
– An infrastructure guarantee operation is also being considered.
The scale of World Bank assistance will be determined by the Government of Guatemalas ability to consistently deliver a high level of performance in the following areas of the “Vamos Guatemala!” agenda:
– Strengthening fiscal performance and promoting governance and transparency;
– Reducing inequality and promoting social inclusion;
– Stimulating growth and enhancing competitiveness.
Each of the Banks lending operations will be supported by World Bank Institute (WBI) capacity-building activities. In addition, the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) will support private sector development in the areas of banking/insurance, infrastructure, extractive industries, manufacturing, and selected export sectors.
The Bank will also carry out analytical work during the CAS period on public expenditure, the financial sector, energy and environment, poverty, economic growth, and the investment climate.
For more information on the World Banks work in Guatemala, visit: www.worldbank.org/guatemala
Kilde: www.worldbank.org
