The Bank stands ready to support governments through financing and technical assistance. The Bank is prepared to assist through a mix of coping and curing strategies, including both rapid response programs and those that require a longer horizon. The objective should be to act now while thinking about how best to advise and assist in the implementation of sustainable and effective policy in the medium-term. The components of Bank support to regional governments therefore would include financing, technical assistance, and analytical work. These components can only be implemented through intensive policy dialogue with governments in order to ensure tailoring to country-specific circumstances while bringing to bear operational lessons from cross-country experiences.
Rapid response will require a combination of emergency financing support and quick evaluation of the feasibility of scaling up existing programs. Information gained regarding vulnerable households from existing targeted schemes, such as CCTs, will serve as a critical input in short notice policy response. In addition the Bank can scale up financial support to cash transfer programs when doing so does not compromise efficacy. Accelerating disbursements on existing loans is a means to providing emergency financing support, as is quick provision of grants to IDA countries, and donor coordination to facilitate concessional financing. The DDO can provide a contingent line of credit in case of future strain on public finances.
In the longer term, the Bank’s focus needs to be on sustainable policy options. The current episode of food inflation has refocused the world’s attention on the role of food policy. The Bank has a significant role to play in transforming the policy debate into sustainable action aimed not only at managing the current crisis but enacting longer term measures. In the medium and long term, the Bank can assist governments in incorporating insurance strategies into their food policy planning, through financing and technical support. Of particular importance would be the Bank’s expertise in agricultural policy aimed at improving supply responses – for example through rural development programs and measures aimed at enhancing agricultural productivity. The same holds true for schemes such as school feeding, food for work, food stamps, and other kinds of targeted consumer subsidies. In the medium run, the Bank can provide technical assistance and all necessary support to create or further develop such programs
The World Bank support can be through coping programs, which are more effective as rapid response, and curing programs, which are designed for the longer term. Both short- and long-term strategies should include financing and technical assistance components and be supported by analytical work. Intensive policy dialogue with governments is needed to ensure that these components are tailored to country-specific circumstances
The recent surge in food prices has led more countries to seek the Bank’s advice and support. Short- and long-term responses and coping and curing responses are presented here. Coping strategies are further divided between those targeted for households and those on the macroeconomic level. The Bank’s support to clients would follow the same pattern (Table 9).
International Development Association countries are eligible for grant financing and donor coordination to support concessional financing, and these are an important part of the Bank’s response to the food crisis in Haiti. For long-term general budgetary support, development policy loans are appropriate.
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