The World Bank has said that one of its main lending instruments, Adjustment Lending, has been replaced by the new Development Policy Lending in a major overhaul of the Banks operational policy, reports Asia Pulse on Tuesday.
The framework unifies policy that applies to a whole range of instruments, including sectoral adjustment loans, structural adjustment loans and poverty reduction support credits, the Bank said in a statement. In addition, it deals with core issues of design, fiduciary arrangements, financing options and dissemination and disclosure, it said.
James Adams, Vice President and Head of the Operations Policy and Country Services Network, says that the switch to Development Policy lending is much more than just a name change. It reflects how thoroughly transformed the instrument has become in the last decade or so.
Policy-based lending in support of a countrys policy program now accounts for about one-third of the World Banks annual lending. The Banks other lending instrument – investment lending – funds projects such as road and school construction.
The new policy acknowledges that there is not one blueprint for reform that will work in all countries. Therefore, governments must take ownership of reforms to develop a program that meets their countries needs, the statement said.
Kilde: World Bank Press Review
