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ECA News, June 2003
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 | The Monthly Newsletter of the World Bank's Europe and Central Asia (ECA) Region
- Feature Story: Development Marketplace
- Environment for Europe Conference
- The World Bank and Anticorruption in Europe and Central Asia
- Travel and Outreach by Johannes Linn
Also:
- Country and Sector News
- Events
- Announcements
- New and Revised Project Documents Online
- Your Subscription
Feature Story: Country Innovation Days Held in Minsk and Bishkek
The ECA region has become an ardent proponent of the Development Marketplace program, which promotes innovative development ideas through early stage seed funding. The month of May marked two significant Development Marketplace events in ECA: Country Innovation Days for Central Asia, held in Bishkek, Kyrgyz Republic from May 21-23, and for Belarus, Moldova, and Ukraine, held in Minsk, Belarus, on May 26-27.
At the Central Asia Country Innovation Day, approximately 200 people from 10 different countries-including fifty finalists from Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan-gathered to explore community-driven development in Central Asia. Along with the first Central Asia Country Innovation Day (CID), the event also consisted of a Knowledge Forum and a Community Empowerment Network annual meeting. The regional CID competition proved to be ground-breaking in several respects. An unprecedented number of initial applications-nearly 1400-were received, including submissions from the most remote communities in the five Central Asia countries. Also, the CID provided a platform for partnership with other development partners, including event co-sponsors USAID and the Eurasia Foundation, as well as many other international organizations, such as UNDP and the European Union, which provided technical assistance and expertise.
The Belarus, Moldova and Ukraine Country Innovation Day was also aimed at identifying effective ways to address local development challenges. The winning proposals were selected by a 13-person jury, consisting of representatives of national and international organizations, governmental and non-governmental agencies of the three countries, and chair Luca Barbone, World Bank Country Director for Belarus, Moldova and Ukraine. The World Bank and its partners (Swiss Cooperation Office, UNICEF, and UNDP) contributed about US$350,000 for awarding 22 best proposals, with awards ranging from $8,000 to $40,000. Priorbank, a major commercial bank in Belarus, provided a special "Audience Choice" prize to a team selected by visitors to the fair.
Since 1998, the Development Marketplace has awarded more than $14 million to over 200 groundbreaking projects through Global Competitions and Country Innovation Days. For more information, visit http://www.developmentmarketplace.org
Environment for Europe Conference
A high-level World Bank delegation, including Johannes Linn, participated in the Environment for Europe Conference, held in Kyiv from May 21-23. Participants included representatives from the 55 member states of the United Nations Economic Commission for Europe (UNECE), other interested member states of the United Nations, and representatives of international and nongovernmental organizations. Discussions in Kyiv covered a wide range of topics, and a final declaration touched on issues ranging from a new convention to protect the Carpathian Mountains to support for a framework strategy for the countries of Eastern Europe, the Caucasus and Central Asia. For more information, visit For more information, visit http://www.worldbank.org/environmentkyiv
The World Bank and Anticorruption in Europe and Central Asia
A new booklet entitled The World Bank and Anticorruption in Europe and Central Asia was released in May at the 11th International Anti-Corruption Conference in Seoul, Korea. The booklet, available at the web address below, describes the Bank's approach in ECA to the complex issue of corruption, and highlights the range of activities that have been undertaken over the past few years to address it. It covers a broad range of topics and includes issues and examples from virtually every sector. A website on governance and anticorruption in ECA was launched in conjunction with the booklet and can be accessed at http://www.worldbank.org/eca/governance
Travel and Outreach by Johannes Linn
ECA Vice President Johannes Linn traveled to Germany in May, to destinations including Leipzig for the opening of a major conference on the energy sector in Central Europe and the Former Soviet Union, organized jointly by the ECA Region and the City of Leipzig, and to Erfurt in Eastern Germany, where he presented a summary overview of the transition experience and of the World Bank's role in support of transition countries. Johannes then traveled Dushanbe for the Tajikistan Consultative Group meeting and subsequently to Tashkent, Uzbekistan for the EBRD Annual Meetings. Johannes proceeded to Baku for an investors' forum organized jointly by the Azeri government and IFC. His trip included a visit to Georgia for discussions with the government. Johannes also traveled to Kyiv for the Environment for Europe Conference, and to Minsk for the Belarus, Moldova, and Ukraine Country Innovation Day.
COUNTRY AND SECTOR NEWS
AZERBAIJAN
CAS Discussion
The Bank's Board of Executive Directors recently discussed the Azerbaijan 2003-2005 CAS, along with the Joint Staff Assessment of Azerbaijan's Poverty Reduction Strategy Paper 2003-05 (known as the State Program on Poverty Reduction and Economic Development). World Bank Azerbaijan Country Manager Akbar Noman, who presented the CAS to the Executive Board, noted that both the CAS and the SPPRED were received well by the Executive Directors. "They commended the participatory process followed in preparing the documents and several Directors also commented favorably on Azerbaijan's reform efforts, and wished Azerbaijan success in the implementation of the SPPRED," he said. For more information, visit http://lnweb18.worldbank.org/eca/eca.nsf/General/DFA7179B2900854F85256D3500492A43?OpenDocument
Education Sector Development Project
The Bank has approved a US$18 million equivalent credit to Azerbaijan to help finance the Education Sector Development Project, which constitutes the first phase of the Education Reform Program. At present, the education sector of Azerbaijan is facing many challenges, including rapid deterioration of the quality of education due to a shortage of financial resources and limited institutional capacity. In 1999, to address main issues in the sector, the Government launched the long-term Education Reform Program with IDA's support. The new Education Project builds on the experiences and lessons learned from the ongoing Education Reform Project, which is the first Bank-financed Education Project signed in 1999 for a total amount of US$5 million. For more information, click here.
BOSNIA AND HERZEGOVINA
Orsalia Kalantzopoulos Makes First Official Visit as CD
New World Bank Country Director for Bosnia-Herzegovina and Regional Coordinator for Southeast Europe Orsalia Kalantzopoulos made her first official visit to Bosnia-Herzegovina as Country Director from May 11-15 to look at the financial and economic situation in Bosnia-Herzegovina, as well as the portfolio of Bank projects in the country. She also discussed the status of the preparation of Bosnia and Herzegovina's Development Strategy. During her visit, she held meetings with government representatives, businesspeople and NGOs in Sarajevo, Banja Luka and Mostar. For more information, click here.
Joseph Ingram's Latest Column: What do Bosnians Want?
In his most recent column, Country Manager Joseph Ingram explores a recently completed study of Bosnia and Herzegovina's labor market, and discusses what can be done to create more jobs and retain the country's young people. To read the column, click here.
BULGARIA
Sofia City Strategy Released
On May 15, Sofia Mayor Stefan Sofianski and World Bank Bulgaria Country Director Andrew Vorkink, presented the Sofia City Strategy, which will help formulate key decisions for the capital city's future, and serve as a good information resource for investors. The strategy is a result of extensive joint work performed by Sofia city authorities and the Cities Alliance that was initiated in 1999. While describing the significant progress the city has made so far, the report also explains many issues that remain. Poverty is still noticeable in some segments of Sofia's population and a considerable amount of infrastructure is run down and insufficient to meet the demands of a modern and dynamic city. With these challenges in mind, three areas of strategic interest were identified and an action list with concrete steps was developed. The Sofia City Strategy is publicly available on Sofia Municipality web site at http://www.sofia.bg and on the World Bank Sofia Office web site at http://www.worldbank.bg
CROATIA
Donors, Government Sign Cooperation Note on Court Case Management System
In a major step toward reforming the judicial system in Croatia, the World Bank, USAID, the European Commission, and the Ministry of Justice, Administration and Local Self-government of the Republic of Croatia recently signed a Cooperation Memorandum for the Development of Court Case Management System. The Cooperation Memorandum marks a major effort to make the Croatian judiciary more efficient and effective through improving the court operations and practices throughout the country. This is the first time that the World Bank, USAID, and the European Commission have formalized their collaboration and pooled their resources to put into practice their shared vision for the reform of the Croatian judiciary, including the development of a court case management system.
GEORGIA
Second Georgia Social Investment Fund Approved
The Bank's Board of Executive Directors recently approved a US$15 million credit for the Second Georgia Social Investment Fund. The project will raise living standards among low-income communities in Georgia by promoting active citizen participation in the implementation of sustainable community-level "micro-projects"; by building capacity for community action and self-help in addressing local socio-economic problems; and by introducing local governments to the participatory development process. For more information, click here.
KAZAKHSTAN
Nura River Cleanup Project
The World Bank has approved a $40.39 million loan for the Nura River Cleanup Project in Kazakhstan. The project aims to clean up serious mercury pollution in and around the Nura River in the northeastern part of the country to provide a safe, secure and cost effective alternative source of water supply to meet growing needs of local water users, and to restore flow control in the river for flood management and ecological purposes. For more information click here.
KYRGYZ REPUBLIC
CAS Discussion
On May 16, the Kyrgyz Republic Country Assistance Strategy (CAS) was discussed at the Board. The new CAS covers the period 2003-2006, and is designed to help the government implement its National Poverty Reduction Strategy. The CAS envisages operations of US$171 million, a significant amount of which will be extended as grants. Upcoming Bank projects in the country will include the Village Investment Project, the Financial Sector and Business Development Project, the Rural Education Project, the Small-Town Infrastructure Project, and the Natural Disaster Mitigation Project. Priorities of the new CAS include assisting the government to promote private sector-led growth; improve access to social and other public services; and promote a better and more effective government. For more information, click here.
POLAND
Poland: Public Expenditure and Institutional Review Discussed
The Bank's Warsaw office recently organized a conference to discuss a new report, "Toward a Fiscal Framework for Growth, a Public Expenditure and Institutional Review for Poland" with representatives from government, think tanks, members of the diplomatic & international investment community, NGOs and the general public. Country Director for Poland Roger Grawe opened the conference, and welcomed Deputy Prime Minister Prof. Grzegorz W. Kolodko, who delivered the keynote speech. The conference focused on two main topics: Fiscal Sustainability and Options for Expenditure Reform, and Poland's Budget Management System. To read the report, or for more information on the discussion, visit the Bank's Poland Country Office site: http://www.worldbank.org.pl
RUSSIA
Bank Promotes Economic Development in St. Petersburg
With 4.7 million people, St. Petersburg is the second largest city in Russia. Designated by UNESCO as a World Heritage Site in 1990, it is home to some of the world's most important art treasures, and displays one of Europe's largest concentrations of 18th and 19th century civil and religious architecture. The city was, and still is, an important manufacturing center. As Russia's largest port in the West, it is also a strategic gateway for exports to, and imports from, the markets of the European Union and the Western hemisphere. However, like other regions and cities in Russia, St. Petersburg has had to weather the fundamental structural changes brought about by the disintegration of the Soviet Union and the transition of the last decade. Its wealth of culture and art has been underutilized, and economic growth in the city is not yet at an optimal level. The recently approved St. Petersburg Economic Development Project will work to address these challenges by supporting both aspects of the city's valuable assets: cultural and economic. For more information, click here.
SERBIA AND MONTENEGRO
Social Sector, Employment Promotion Projects Approved
The Bank has approved a US$80 million credit to support social sector reforms in Serbia. The program will assist the Serbian Government in the implementation of changes in social protection, labor and health, which are expected to lead to more fiscally sustainable programs, while continuing to provide core benefits and services to the population, in particular the most vulnerable groups. In May, the Board also approved $2.75 million credit for employment promotion in Serbia, which will improve the cost effectiveness and efficiency of labor programs by piloting and testing new approaches and innovative labor redeployment programs and employment services for the unemployed. For more information, click here.
Orsalia Kalantzopoulos Visits Serbia and Montenegro
World Bank Country Director and Regional Coordinator for Southeast Europe Orsalia Kalantzopoulos visited Serbia and Montenegro from May 18-20. During her visit she met with the prime ministers of Serbia and Montenegro, as well as with government officials at the Union and republican levels and representatives of the Democratic Party of Serbia.
SLOVAKIA
Slovakia, Hungary Small Grants Update
The World Bank's Slovakia Country Office has been managing the Small Grants Program 2003 both in Slovakia and Hungary. In order to improve the overall management of the SmGP and at the same time strengthen the partnerships and support the capacity building of local civil society organizations, the World Bank Office in Bratislava has contracted national foundations in both countries to administer the program. Committees consisting of World Bank staff as well as representatives of civil society organizations evaluated 66 projects in Slovakia, out of which 16 were selected to receive funding in the total amount of $45,000. In Hungary 33 proposals were received, and 11 have been awarded for a total amount of $30,000. For more information about the Slovakia Country Office, visit http://www.worldbank.sk/
TAJIKISTAN
CG Meeting Held in Dushanbe
Donors came forward with unprecedented generosity and interest during May's Tajikistan Consultative Group Meeting in Dushanbe, announcing pledges for commitment over 3 years that come close to the country's annual GDP. Representatives of governments and international agencies pledged to step up assistance and financial support to Tajikistan as part of an intensified effort by the Tajik government and the international community to fight poverty in the country. Donors indicated pledges of some $900 million over three years (including $200 million in humanitarian assistance) for a poverty-focused investment program presented by the Tajik government to the CG meeting. Some two-thirds of the total were pledged in grants. Actual disbursement will depend on further prioritization, effective implementation, and continued strong policy and governance reforms. For more information, click here.
UKRAINE
E-Development Project Approved
On May 6, the Bank approved a US$5 million E-Development Project for Ukraine, which will assist the Government of Ukraine to enhance efficiency of the decision-making process, foster private sector development, and strengthen civil society in Ukraine by introducing innovative models of Information and Communication Technologies (ICT) solutions. The project will promote a market-driven approach, which will foster development of the ICT industry, infrastructure building, access to online services and local content, and extend Internet penetration in Ukraine. For more information, click here.
EVENTS
Roma Conference to be held in Budapest
The "Roma in an Expanding Europe: Challenges for the Future" conference will be held in Budapest from June 30-July 1, co-organized by the World Bank and the Open Society Institute with support from the European Commission and other partners. The event, which will attract several Prime Ministers and leading politicians from the region, will be hosted by the Government of Hungary. World Bank President James Wolfensohn and Open Society Institute Chairman George Soros, both of whom are strong advocates for improving the status of Roma people, will participate. For more information, visit www.worldbank.org/romaconference
ANNOUNCEMENTS
Water Resources Management in South Eastern Europe
Water needs to be higher on the development agenda of countries in the Balkans, since better river basin management can pre-empt floods, drought, coastal erosion and river pollution, according to Water Resources Management in South Eastern Europe, a recently released World Bank report. The report examines seven countries in detail -- Albania, Bulgaria, Croatia, Bosnia and Herzegovina, the Former Yugoslav Republic of Macedonia, Romania, and Serbia and Montenegro -- as well as sources and consequences of poor water resources management in the South Eastern Europe (SEE) sub-region. It also provides examples of successful water programs and projects. To read the report, click here.
Report Says Europe Facing Pensions Crunch
Countries across Europe, including current European Union member states, and EU accession countries in Central, Eastern, and Southern Europe must undertake urgent pension reform to allow their rapidly aging populations, especially women, to retire without a sharp reduction in living standards. A new Bank report, Pension Reform in Europe: Progress and Process, launched at a pensions briefing at the European Union in Brussels on May 15, says that rising budget costs, changing patterns in contemporary society, and the financial requirements of European economic integration, are driving an unavoidable case for comprehensive, pan-European pensions reform. For more information on the Bank's work in the area of pensions and social protection, visit: http://www.worldbank.org/sp then click on "pensions"
State-owned Banks in the Transition
A new report, State-Owned Banks in the Transition, recounts the time-consuming, costly restructuring of state banks in countries of the Europe and Central Asia region from the late 1980's through 2000. A key finding is that governments are better off moving swiftly to privatize or liquidate their remaining state banks rather than rehabilitate them.
To read the report, click here.
NEW AND REVISED PROJECT DOCUMENTS ONLINE
NOTE -- Links to document files are temporarily unavailable, but will return to the newsletter as soon as a new cataloging system is in place. Documents will be posted on the Bank's Documents and Reports page within 7-10 days.
http://www-wds.worldbank.org/
If you require the document(s) urgently, send an email to pic@worldbank.org
Miriam Van Dyck
Europe and Central Asia External Affairs
The World Bank
Telephone (202) 458-2931
Fax (202) 614-1008
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