The CAS or CPS supports the Government's own development program and is tailored to the needs and circumstances of each country. They are prepared in a participatory way with the government and representatives of civil society.
TYPES OF LENDING
The World Bank provides different types of financing to countries. These include loans from the International Bank of Reconstruction and Development (IBRD) and credits and grants through the International Development Association (IDA) - the concessional lending arm of the World Bank Group. The type of financing provided is determined by the country's level of need. The money that is borrowed by governments has to be used for specific projects and programs. IBRD Loans - Countries that borrow from IBRD have more time to repay than if they borrowed from a commercial bank—15 to 20 years with a three-to-five-year grace period before repayment of principal begins. IDA Credits - IDA’s interest-free credits have a 35-40-year repayment period with a 10-year grace period. Currently, to be eligible for IDA assistance, a country must have a per capita gross national income of $875 or less. LENDING INSTRUMENTS The Bank has two basic types of lending instruments, Structural Adjustment and Investment Loans. Investment Lending – Investment loans are made for a variety of purposes and are handled by government departments (technical assistance, health, education, etc.), autonomous public sector companies (power, telecommunications) or the private sector (for operations supported by the IFC). Development Policy Lending – Development Policy loans provide quick-disbursing assistance to countries to support structural reforms in a sector or in the economy as a whole. They support the policy and institutional changes needed to create an environment conducive to sustained and equitable growth.  More on Lending Instruments.
GRANTS A number of grant mechanisms also exist. IDA has traditionally provided interest-free credit but it is increasingly providing grants as well. In addition to these IDA grants, the Bank administers about a dozen grant programs as well as some 850 donor trust funds disbursing more than $1 billion a year. More on Grants
PROJECTS The World Bank develops and finances a project at the request of the government of the country concerned. An appraisal of the project's feasibility and loan terms is followed by negotiations. Various financing options are available based upon the type of assistance needed. Loans or credits for these projects are then submitted to the World Bank's Board of Executive Directors for approval. The Board is the World Bank's decision-making body which represents all member countries. The loan becomes effective after it has been ratified by the government of the country concerned. It is important to note that the Implementation of projects is managed by the government itself. The government establishes an office, referred to as the Implementing Agency, which is responsible for aspects of implementation such as procurement and selection of consultants. More on Project Cycle.
|
ANALYTICAL AND ADVISORY SERVICES: Studies, Reports, Events
World Bank staff in each country undertake studies and reports, known as ‘Economic and Sector Work’. These reports are designed to provide a thorough understanding of the country’s development problems.Topics of research and analysis are outlined in the Country Assistance Strategy or Country Partnership Agreement. They include reviews of economic policies (Country Economic Memoranda), fiscal spending (Public Expenditure Review), environmental reviews (Environmental Action Plan), and other specific topics. Further discussion of development issues is promoted though workshops and other events. These events increasingly bring together government, academia, and civil society organizations. The World Bank’s Development Economics group, led by its chief economist, also undertakes the research that informs the Bank's work on broad issues such as the environment, poverty, trade and globalization. More on the World Bank's Research BUILDING CAPACITY To ensure lasting results in countries, the World Bank also enhances the capability within countries to sustain economic development programs. This Knowledge Sharing effort is mostly carried out through the World Bank Institute (WBI), which conducts programs to enhance the skills and development of its clients, staff, and partners. These programs take the form of courses, policy consultations, partnership with training and research institutions worldwide, and the support of knowledge networks related to international development. WBI is the home of one of the world’s most extensive distance learning networks. Advisory Services are available for information and knowledge by topic— from environmentally and socially sustainable development, health, nutrition and population, the financial sector, to law and justice. In some cases, toolkits are available for other development practitioners to use— for example in project design; management and monitoring; legal, financial, and procurement requirements; gender; food and nutrition; and resettlement safeguards. PREVENTING CORRUPTION For external financing to be effective, it must be honestly and transparently managed. Since 1996 the Bank has launched hundreds of anti-corruption programs and governance initiatives in client countries. Its approach is defined in its governance and public sector strategy paper, Reforming Public Institutions and Strengthening Governance: A World Bank Strategy and in individual country strategies. Back to top |
RSS