LA PAZ, June 7, 2009.- On June 2, 2009, the World Bank Board approved a new plan for financial support to the Plurinational State of Bolivia, which includes up to $ 137 million to be disbursed between 2010 and 2011. This is the second such an agreement between the Bank and the current government. The first initiative for 2007-2009, still in place, included US $273 million for eleven projects under current implementation. The Bolivian government and the World Bank have agreed that an Interim Strategy Note for two years remains as the most appropriate instrument for further long-term support to the development priorities of Bolivia in the Government’s National Development Plan (NDP). This approach is consistent with the recommendations of the Country Assistance Evaluation of 2005 (CAE) in terms of using shorter development strategies in contexts of change. This Interim Strategy Notecovering the period 2010 to 2011-a period defined by the Government as transitional for the country. The World Bank hopes to change to a longer term strategy after this period, assuming that the political and economic environment and implementation capacity will be enhanced. The support strategy is selective and flexible. Following the lessons learned and recommendations from the CAE, the World Bank and the Government agreed that the new Interim Strategy Note should identify fewer loans with larger funding in order to optimize the development impact of projects and achieve economies of scale. They also agree that the implementation of the approved projects must be a priority. Interventions should take into account complementarities with other donors, and focus on a horizon of medium-term commitments. Several lessons learned can be applied now to the new strategy for Bolivia: 1. A fast relationship with the incoming administration was successful. The World Bank was the first donor to make a collaboration commitment with President Morales. This aimed to clarify negative perceptions about the World Bank and other multilateral agencies, and contributed to development an environment of trust to build a positive relationship with the new authorities. 2. The identification of shared goals and priorities is important. The World Bank has invested a considerable effort in identifying common objectives and priorities with the administration of President Morales, while maintaining a strategic long-term horizon. This enabled the appropriate commitment for funds allocated under the previous strategy. 3. Pragmatism and flexibility were required to work with the fragile capacity of the teams of the government. Even when shared priorities were identified, differences in methodologies and frequent changes of key staff and operational priorities, delayed the implementation of the strategy. The World Bank's role as a source of knowledge and the proactive engagement from the World Bank teams were vital for progress in the preparation and implementation of projects. 4. In the future, the World Bank should (i) continue the focus on shared priorities, (ii) to consider additional support for government teams in the preparation and implementation of projects, (iii) avoid the fragmentation of projects and focus on a limited number of simple projects with clear objectives, well defined, measurable and realistic time frames for implementation, and (iv) continue to work to strengthen the long-term commitment of the World Bank in the country.
The full document is available on the top right side of this page, and the print version of the ISN, is also available at the  Public Information Centers. More general information about  Country Assistance Strategies.
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