Latest ECA Flagship Proposes New Solutions for Migration
Migration, already a critical issue in ECA, will only increase in the coming years and must be regulated in order to benefit all parties involved, according to the new ECA flagship Migration and Remittances: Eastern Europe and the Former Soviet Union. Migrants are seeking better opportunities both in Western Europe and ECA, with Russia, Ukraine, Kazakhstan, and Poland in the top-ten migrant-receiving countries in the world. However, few effective bilateral agreements between countries exist that would optimize the benefits of migration for both sending and receiving countries, as well as the migrants. The report suggests that circular migration, under which migrants eventually return to their home countries, could potentially yield this “Triple Win” scenario.

Back to Top

ALBANIA

Conference Looks at Accounting and Auditing Rules in Albania
A dissemination conference for the Albanian Report on the Observance of Standards and Codes (ROSC) in Accounting and Auditing took place in Tirana on December 19. The ROSC assessment evaluated Albania’s accounting and auditing rules and practices as they compare with internationally recognized standards and good practice and identified existing gaps and inconsistencies. It concluded that Albania successfully put in place several important elements of the institutional and statutory framework on corporate financial reporting, but still needs to take further steps in order to achieve its goal of a sound financial reporting framework tailored to the needs of the Albanian economy and aligned with the EU’s body of law and international standards and practices. World Bank officials in attendance included co-Task Manager of the ROSC Program in ECA Erik van der Plaats. Click here for the press release.

AZERBAIJAN

New Country Partnership Strategy for Azerbaijan
The Bank’s Board of Directors discussed the Country Partnership Strategy for Azerbaijan for fiscal years 2007-2010 on December 7. The new partnership strategy envisages a lending program of US$1.26 billion, both in IDA and IBRD financing, as well as an active IFC program.  Knowledge-sharing, analytical and advisory activities, and development partnerships will reinforce these investments. The Strategy aims to foster economic diversification and growth, particularly in the non-oil sector, while maintaining macroeconomic stability; improve health, education and infrastructure services; strengthen social protection; and address important environmental issues and climate change. Lead Economist for the South Caucasus Christian Petersen and Country Manager Gregory Jedrzejczak also met with journalists to present the new Strategy on December 7. Click here for the press release.

BOSNIA & HERZEGOVINA

Program to Improve Business Environment to Begin in FBiH
In December, the BiH Federation Government accepted the Federal Administration for Inspection Affairs’ initiative to include FBiH in the project "Guillotine of Regulations." This project, administered by the World Bank and the International Finance Corporation’s Foreign Investment Advisory Service, aims to reduce procedures and create a faster, simpler, and more transparent environment for foreign investments. A similar project has been successfully implemented in Republika Srpska.

MACEDONIA

Donors Agree to Fund Financial Reporting Action Plan
The World Bank secured €4.55 million in grant funding from bilateral donors, including the Netherlands and Austria, on December 8 to implement the actions specified in the Macedonian Country Strategy and Action Plan on Corporate Financial Reporting. The strategy was developed by the Macedonian Steering Committee, established in 2005 and comprising key public and private sector stakeholders with an interest in corporate sector financial reporting. The World Bank supported Macedonian reform in the context of the Road to Europe – Program of Accounting Reform and Institutional Strengthening, as well as assisted the Macedonian Steering Committee in its drafting of the Action Plan. Click here for the press release.

MOLDOVA

Donors’ Consultative Group for Moldova Meets in Brussels
The Government of Moldova and its international partners convened on December 12 in Brussels for a Consultative Group Meeting. The objectives were to assess progress and confirm commitment to the implementation of the country’s reform program and development agenda, and to provide indications of additional external financing in response to recent external shocks that have opened a short-term financing gap. The meeting was hosted by the European Commission and the World Bank. The Government delegation was led by the Prime Minister, and Managing Director Graeme Wheeler headed the Bank’s delegation. All key development partners were represented. Donors and the Government agreed that Moldova must continue to implement its reform agenda, which was supported by donors, who proposed financial support of over US$1.2 billion over the next three years. About 50 percent of the total is expected to be provided as grants. Click here for the press release.

Managing Director Graeme Wheeler Visits Moldova
Managing Director for Operations Graeme Wheeler paid an official visit to Moldova from December 7 to 9. Mr. Wheeler learned about the opportunities and challenges facing Moldova, met with government officials and other stakeholders, and explored further ways to strengthen World Bank cooperation with Moldova. During his stay, Mr. Wheeler met with President Vladimir Voronin and other key government officials, as well as representatives of civil society and the business and donor communities. Mr. Wheeler also visited the Bank-financed Water and Sanitation Project in Stefan Voda. Mr. Wheeler noted the good progress in reducing poverty over the past few years and the strong medium-term growth prospects, but he emphasized the need to expedite and deepen structural reforms. The visit took place just a few days prior to the Donors’ Consultative Group meeting in Brussels. Click here for the press release.

RUSSIA

World Bank Launches New Three-Year Country Partnership Strategy
The Bank’s Board of Directors endorsed a new three-year Country Partnership Strategy for Russia on December 1. The CPS marks a shift towards new forms of cooperation focused on knowledge sharing, increased technical assistance and financing for the country’s regions, and new fee-for-service arrangements for investment and policy advice, combined with continued strong levels of financing to the private sector and limited financing for assistance in managing priority public investments. The CPS, covering fiscal years 2007-2009, will help Russia sustain the impressive and rapid growth it has achieved in recent years, better manage the public sector and improve governance, ensure that social and communal services are provided to the people of Russia, and help Russia make the most of its emerging role as a development donor and global partner. Click here for the press release.

TAJIKISTAN

Avian Flu Project Launched in Tajikistan
The Government of Tajikistan and the World Bank officially launched the Avian Influenza and Human Pandemic Preparedness and Response Project on December 20. A grant of US$5 million for the project was approved on June 29. Although Tajikistan has not recorded outbreaks of the avian flu strain H5N1, cases of avian influenza have been reported in neighboring countries. There is a risk of an H5N1 outbreak among poultry in Tajikistan due to waterfowl migration and growing cross-border trade. The project will help the Government minimize the risks that avian influenza infection and other zoonoses may pose to humans and the poultry industry in Tajikistan. The project is one of the first initiatives aimed at preventing and ensuring adequate preparedness and response in case of such an outbreak in the country and is a joint collaboration of  UNICEF, the Food and Agriculture Organization of the United Nations, WHO, and others. Click here for the press release.

World Bank Approves Supplemental Financing for Water Project
The Bank’s Board of Directors endorsed a US$5 million credit and grant as additional financing for the Dushanbe Water Supply Project on December 20. The additional financing will support the scaling up of ongoing work under the current Project. Continued repair and rehabilitation of the water supply system in Dushanbe is a priority of the Government. The original World Bank credit was approved in 2002 to improve water supply services in Dushanbe, and the project has already improved services in parts of the city and increased the availability of clean and safe water. The additional financing should further improve water supply quality and reliability, particularly to poorer neighborhoods of the city. Click here for the press release.

IFC Helps Tajikistan’s Small Businesses
The IFC and Tajik commercial bank Tojiksodirotbonk signed a US$2.5 million credit line on December 4. The credit line will support the growth of small businesses in Tajikistan and allow the bank to expand its lending to micro and small enterprises, key forces for job creation and poverty reduction. The project is part of the IFC’s US$45 million Central Asia Micro and Small Enterprises Facility, which makes loans to selected local banks for on-lending to micro and small enterprises in Central Asia in cooperation with the EBRD. The financing strengthens private sector development in Tajikistan by supporting small businesses that often have difficulty obtaining access to capital and strengthening a key private financial institution. Click here for the press release.

TURKEY

Vice President Shigeo Katsu Meets with Government Officials in Turkey
Vice President Shigeo Katsu visited Turkey on December 20-21, accompanied by newly-appointed Country Director Ulrich Zachau. Shigeo met with the Ministers of Finance, Economy, and Energy as well as the heads of the Treasury, Central Bank, and the State Planning Organization, exchanging views on current economic developments, projections for 2007, and the future of the Word Bank Program. Click here for the press release.

UKRAINE

Bank Report Critical of Ukraine’s Grain Quota
The Ukraine Country Office released a report on December 7 on the new quota system for grain exporters in Ukraine, "The Quotas on Grain Exports in Ukraine: Ineffective, Inefficient, and Non-transparent." The report, prepared jointly with the German Advisory Group to the Ukrainian Government, studies the impact of the quota on domestic grain prices and consumer protection, export revenues, and investments in the grain sector. The report argues that the quota is ineffective in protecting domestic consumers against rising international grain prices, inefficient because it causes large losses of export revenues, and prone to corruption, leading to a loss of Ukraine’s investment reputation. This report is an example of how a flexible approach and reaction to current developments can raise the Bank’s profile in the country and generate positive media coverage. Click here for the press release.    

Back to Top

Azerbaijan - Country Partnership Strategy
Russia - Country Partnership Strategy
Tajikistan - Additional Financing for the Dushanbe Water Supply Project

Back to Top

To subscribe to this free monthly newsletter and receive other World Bank updates on Europe and Central Asia, enter your email here.

To view archive of past newsletters, click here.

Back to Top