Contacts: In Washington Miriam Van Dyck (1-202) 458-2931
E-mail mvandyck@worldbank.org In Tirana Ana Gjokutaj (355 42) 280 560/61 E-mail agjokutaj@worldbank.org
WASHINGTON, January 10, 2006 - The World Bank’s Board of Executive Directors today discussed a new Country Assistance Strategy (CAS) for Albania. The CAS is a document that details the Bank’s work plan to assist client countries in achieving their development goals. It describes all of the Bank’s planned operations in the country—lending, analytical work, and technical assistance. The new CAS - the fourth CAS the World Bank Group has produced for Albania – covers the period 2006-2009 and envisages a lending program of up to US$86 million from IDA (International Development Association) and US$110 million from IBRD (International Bank for Reconstruction and Development).
Priorities of the new include CAS assisting the government foster economic growth through support to private sector development and thus creating more jobs; and improving public service delivery, particularly in the social sectors. Governance will be mainstreamed in all programs and projects supported by the CAS.
The new Country Assistance Strategy takes into account priorities of the Government of Albania, reflected in its program documents. It is oriented towards results and was prepared in consultation with country authorities, development partners and other stakeholders.
“The goal of the CAS is to support Albania’s National Strategy for Social and Economic Development and the European Union Stabilization and Association process with the ultimate objective of EU integration and the attainment of the Millennium Development Goals”, says Nadir Mohammed, Country Manager for Albania.
Since last CAS (2003-2005) Albania has continued its strong performance in achieving high economic growth through the implementation of its National Strategy for Social and Economic Development (NSSED). During this period the country enjoyed macroeconomic stability and average real GDP growth rates of over 5 percent. However, maintaining this performance will be difficult, and Albania will need to attract more foreign direct investment, increase public and private savings, accelerate accumulation of physical and human capital, and improve governance structures to maintain its impressive progress to date. Widespread poverty, high unemployment, and wide regional disparities remain big challenges.
The CAS is focused on two pillars:
· Continued Economic Growth through Support to Private Sector Development. A more developed private sector will contribute to macroeconomic stability, improved business climate, improved public-private sector dialogue, better public infrastructure, and increased efficiency of financial institutions. It will also contribute to improved functioning of the land market, increased transparency and efficiency in the management of public spending, and stronger institutions for planning, tendering and providing infrastructure and services, better accountability in public administration, and better management and planning for Albanian coastal resources.
· Improving Public Service Delivery, particularly in the Social Sectors. Although the economy has grown in the last years, many Albanians continue to lack access to basic health and education services. The new CAS will help to increase access and quality of basic education. It will support a better quality of health care, fiscal sustainability of the social insurance system and improve access to clean water for thousands of Albanians.
The new CAS will introduce a ‘Governance Filter’ in all Bank-financed projects.
The previous CAS for Albania envisaged a lending program of up to $130 million. In the framework of this strategy, the Bank assisted the government to reform institutions, promote private sector development and restructure social sectors. These projects have already yielded some positive results. Some examples include over 500 judges and prosecutors trained to upgrade skills and procedures; more jobs as a result of urban and rural microcredit schemes, many schools rehabilitated or built, a new scheme to provide primary school students with free textbooks; and improved services in three main hospitals. In addition, thousands of families benefited from upgraded irrigation and drainage systems; hundreds of kilometers of roads have been built to connect the rural poor to urban markets across Albania; and over 900 community projects have improved water supplies, sewerage treatment, bridges, health centers, schools, day-care facilities, marketplaces, cultural centers and parks, improving the quality of life of people living allover Albania.
The CAS was prepared in partnership with the Government of Albania and has benefited from extensive collaboration with other development partners, as well as from wide consultations with Parliamentarians, main political parties, private sector, and civil society.The goal was to seek their feedback on the Bank’s proposed strategy of assistance to the country.
Since 1991, the World Bank Group has provided strong support to Albania, including IDA commitments totaling US$ 820 million, IFC commitments of US$ 125 million, and MIGA guarantees totaling US$ 8.6 million.
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