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ECA News, March 2004
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  | | The Monthly Newsletter of the World Bank’s Europe and Central Asia (ECA) Region | |  | Highlights in this issue:
- Knowledge Economy Forum in Budapest to Explore Competitiveness
- Ireland hosts ECA HIV/AIDS conference; Participants Sign on to Dublin Declaration
- PPP Conference Held in Prague
Also:
- Country and Sector News
- New and Revised Project Documents Online
- Your Subscription
Knowledge Economy Forum in Budapest to Explore Competitiveness
The World Bank and the Government of Hungary have announced the third Knowledge Economy Forum, "Improving Competitiveness through a Knowledge-Based Economy," which will take place in Budapest from March 23-26. KEF III will focus on the competitiveness agenda and on how a more dynamic, knowledge-intensive economic context can support innovation, competitiveness, and economic growth. Delegates representing 22 Europe and Central Asian governments, international organizations, the private sector, civil society, and academia will convene to discuss the knowledge economy: the new economic environment in which innovation and knowledge are replacing capital and labor as the primary wealth-creating assets. For more information, visit www.worldbank.org/eca/kef
Ireland hosts ECA HIV/AIDS conference; Participants Sign on to Dublin Declaration
Donors, government officials, civil society groups, and youth representatives joined forces in the fight against HIV/AIDS at a high-level conference from February 23-24 in Dublin hosted by the Irish EU Presidency. "Breaking the Barriers -- Partnership to Fight HIV/AIDS in Europe and Central Asia," was organized in cooperation with UNAIDS, UNICEF and the World Health Organisation. A Dublin Declaration on Partnership to fight HIV/AIDS was adopted by ministers and representatives from the 55 member countries of the UN Economic Commission for Europe, high level representatives from the European Commission, the Council of Europe, UN agencies, the World Bank, and NGOs. The declaration lays out concrete goals regarding leadership by the EU, CIS and other groups, prevention, access to information, treatment and availability of anti-retroviral drugs, and partnership. High-level calls were made for provisions for the appointment of an EU Ambassador on HIV/AIDS, including by the Bank. ECA Vice President Shigeo Katsu headed the World Bank's delegation in Dublin and co-chaired a leadership panel on Day 1. The Bank met with civil society groups there, took part in two press conferences, and widely distributed its Regional Support Strategy on Averting HIV/AIDS in ECA.
To read more about the conference and to download the Dublin Declaration, visit http://www.eu2004.ie/templates/meeting.asp?sNavlocator=5,13&list_id=25
To read the Irish Presidency's press release calling for appointment of an EU Ambassador on HIV/AIDS, visit http://www.eu2004.ie/templates/news.asp?sNavlocator=66&list_id=294
Public Private Partnerships Discussed in Prague
The Governance for Public Private Partnerships Forum, held from February 26-28 in Prague and co-hosted by the Czech government and the World Bank, wrapped up with the announcement of a Prague Public Private Partnership Platform, or ‘Five Ps’ initiative, which will facilitate networking and capacity building among PPP experts and stakeholders in Central and South Eastern Europe. The Czech government, the World Bank and more than ten other governments, participants from several European institutions, as well as private sector representatives agreed to the initiative. Through coordinated capacity building and knowledge sharing among experts, parties to the platform hope to ‘professionalize’ the PPP function within Governments in the sub-region. The platform will allow experts to set up an international network for sharing templates for running PPP projects as well as practical lessons of experience. For more information, visit www.worldbank.org/pppforum
Country and Sector News
ARMENIA
Business Support Council Meeting Convened
The first session of the Bank-founded Business Support Council (BSC) was held on February 17, chaired by Prime Minister Andranik Magaryan. The report on the BSC’s 2003 performance was presented. The BSC has carried out a number of activities to promote investment and provide support to businesses, to address the administrative problems hindering business progress, and to coordinate the relationship between the business community and state entities. World Bank Armenia Country Manager Roger Robinson informed BSC members that the Bank would soon finalize a fourth study on Business Environment in the country, with similar studies to be carried out in the coming several years as well. Roger also noted that the Bank will soon finalize the new Country Assistance Strategy for Armenia, and one of its main emphases will be promoting improvement of the business environment. For more information about the World Bank’s work in Armenia, visit http://www.worldbank.org.am
BOSNIA
International Community meets with BiH Authorities to Urge Reforms
Senior representatives of international organizations--including the World Bank--working in Bosnia and Herzegovina met with the principal authorities of the State of BiH and the Federation of BiH in February. They discussed with government and parliamentary leaders the International Community's concern that the authorities' failure to implement reforms will destroy any chance of BiH entering the Partnership for Peace, or beginning Stabilization and Association negotiations with the European Union in 2004. Failure to honor commitments could also cost BiH US$100 million in World Bank loans. For more information, visit http://www.worldbank.ba/ECA/Bosnia&Herzegovina.nsf/ECADocByLink/8B4C97EB541DF71EC1256E440044ABB7?Opendocument
Country Manager Discusses Debate on Veterans’ Benefits
In an op-ed for Oslobodjenje newspaper, BiH Country Manager Dirk Reinermann discussed an allegation in the press that the Bank is limiting rights and benefits of war veterans and invalids as part of the ongoing reforms of the social sector. But in reality, the limitation is available budget resources, said Dirk. The World Bank is ready to continue supporting reforms of social safety nets in BiH with expertise, advice and through the Second Social Sector Adjustment Credit, he noted. To read the op-ed, visit
http://www.worldbank.ba/ECA/Bosnia&Herzegovina.nsf/ECADocByLink/B9DC46B9A6E47195C1256E3500401710?Opendocument
SEED, BiH Association for Information Technology Sign Agreement
The World Bank's South East Europe Enterprise Development (SEED) program and the BiH Association for Information Technology (BAIT) have signed an agreement on cooperation, aimed at strengthening the BAIT and improving the BiH IT sector. The SEED program manager for BiH, Lejla Dragnic, pointed out that the agreement provides for technical aid to be provided to all the members of the BAIT, and was the first step towards long-term cooperation between the two subjects. SEED program manager Goran Zaric said that the joint activities by the two organizations would ensure that the IT sector will receive a great deal of support.
http://www.worldbank.ba/ECA/Bosnia&Herzegovina.nsf/ECADocByLink/5FF3BCE005BAFE8EC1256E43005C4446?Opendocument
LATVIA
Small Grants Program 2004 Announced
The World Bank and the UNDP recently announced that they have allocated $55,000 to finance the Latvia Small Grants Program in 2004. The program aims to reduce poverty in rural areas, improve the conditions of vulnerable people, and to establish cooperative linkages among civil society, local and federal governments, and the private sector. On February 12, a conference on the Small Grants Program in Latvia was organized in Riga. Participants included World Bank Latvia Country Manager Inguna Dobraja, UN Permanent Representative in Latvia Gabriele Köhler, and Kristine Vagnere from the Secretariat of the Minister for Special Assignments for Society Integration Affairs. Attendees met with Maris Luste, manager of a small grants project implemented at the Daugavpils prison, and Aija Kalnina, manager of a project implemented by the Latvian Disabled Children's and Youth Sports Federation. For more information, visit http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/ECAEXT/LATVIAEXTN/0,,menuPK:361559~pagePK:141159~piPK:141110~theSitePK:361470,00.html/
RUSSIA
New Russian Economic Report Released
The Russia Country Department launched its latest "Russian Economic Report" at a press conference at the Russian news agency Interfax on February 18. The report analyzes the latest economic developments in the Russian Federation, and re-calculates the composition of GDP in Russia. This re-calculation takes account of the effects transfer pricing and other tax avoidance schemes have on the composition of GDP. It results in a much higher share of oil and gas production than recorded in Russia's "official" national accounts and correspondingly, a lower share of services. In discussing these findings, Christof Ruehl, the Bank's Lead Economist for Russia, pointed out that they confirm the strong dependency of Russia's growth performance on world market prices for natural resource exports, but also point at massive problems with tax collection in this area. The report also summarizes recent Bank publications on housing finance and mortgage market development. For more information, visit http://www.worldbank.org.ru/
World Bank Supports "e-Learning"
On March 2, the World Bank approved a US$100 million loan for the first phase of a total $300 million Adaptable Program loan to the Russian Federation for the e-Learning Support Project. The first phase of the project will support education modernization goals of the Federal Targeted Program for 2001-2005 "e-Education," and will help improve accessibility, quality, and efficiency of general and first level vocational education all over Russia. For more information, visit http://www.worldbank.org.ru/ECA/Russia.nsf/ECADocByUnid/14653B07C7A35BCBC3256E4C0031ADBC
TURKEY
EFIL II Loan Signing
Turkey Country Director Andy Vorkink and Ali Babacan, Minister of State in charge of Economy, signed the Export Finance Intermediation Loan II on February 20. The $303 million loan aims at providing medium and long-term working capital and investment finance to Turkish exporting enterprises. One other main benefit of the proposed project will be fast private sector recovery and job creation, supported by a healthier and more developed financial system. "The Government's request for the EFIL II credit line for exporters is very timely," said Vorkink during the signing ceremony. "The project will support the current upward momentum in export performance and by extension, in general economic improvement.Today’s economic indicators in Turkey show that the demand for investment is increasing. Through EFIL II, not only growth of exporters as the engines of overall growth will be financed, but also a boost for investment will be supported and thus new jobs will be created." For more information, visit http://lnweb18.worldbank.org/ECA/eca.nsf/General/48EA42E050DE58E285256E1A0076C586?OpenDocument
Agreement Signing Ceremony for Turkish Development Marketplace Winner
The World Bank and the Middle East Technical University of Turkey signed on February 23 a $129,990 Development Marketplace Program Project Agreement for the "Seismic Performance Improvement of Masonry Houses" project. The agreement was signed by Andy Vorkink and Rector of Middle East Technical University Professor Ural Akbulut. The project, developed by Assistant Professor Ahmet Türer from Middle East Technical University, was awarded a seed fund from the Development Marketplace 2003 competition. Its objective is to make masonry houses safer for poor residents living in earthquake-prone areas in Turkey by reinforcing walls with used car tire straps. For more information, visit http://www.worldbank.org.tr/ECA/Turkey.nsf/ECADocByUnid/1D9BCE7ACD385322C2256E4300448B64?OpenDocument
UZBEKISTAN
Drainage, Irrigation, and Wetlands Improvement Project Signing
The Government of Uzbekistan and the World Bank on February 7 signed an agreement for a US$74.55 million Drainage, Irrigation and Wetlands Improvement Project. The Project is aimed at increasing productivity of irrigated agriculture, employment and incomes in Karakalpakstan, improving water quality of the Amu Darya river, and enhancing the quality of wetlands in the Amu Darya delta. It will also develop institutions for improving water management, operation and maintenance of irrigation and drainage systems, and will promote sustainable irrigated agriculture through participatory irrigation management. The project became effective on February 20. For more information, visit http://lnweb18.worldbank.org/ECA/Uzbekistan.nsf/ECADocByLink/The+Drainage+Project+Is+Signed+on+5+February+2004?Opendocument
New and Revised Project Documents Online
ALBANIA - Natural Resources Development
http://www-wds.worldbank.org/servlet/WDS_IBank_Servlet?pcont=details&eid=000104615_20040209150832
ARMENIA - Public Sector Modernization
http://www-wds.worldbank.org/servlet/WDS_IBank_Servlet?pcont=details&eid=000104615_20040211115049
HUNGARY - Hungary Pannonpower Biomass
http://www-wds.worldbank.org/servlet/WDS_IBank_Servlet?pcont=details&eid=000104615_20040217113601
SERBIA AND MONTENEGRO - Pensions Administration
http://www-wds.worldbank.org/servlet/WDS_IBank_Servlet?pcont=details&eid=000104615_20040223142121
SERBIA AND MONTENEGRO - Transport Rehabilitation
http://www-wds.worldbank.org/servlet/WDS_IBank_Servlet?pcont=details&eid=000094946_03121104004081
Miriam Van Dyck
Europe and Central Asia External Affairs
The World Bank
Telephone (202) 458-2931
Fax (202) 614-1008
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