2004 

International events

Nigerian President Olusegun Obasanjo declares State of Emergency and moved to stem sectarian violence between Christian and Muslim militias.

Terrorist bombings destroy commuter trains in Madrid, killing nearly 200 and injuring over 1,000. Newly elected premier, José Luis Rodríguez Zapatero orders Spanish troops back from Iraq. Other terrorist bombings claim lives in Baghdad, Damascus, Thailand, Saudi Arabia, Chechnya, Colombia, Russia, Afghanistan, Indonesia, Pakistan, and Egypt.

Government-backed militias in Sudan were accused of carrying out a campaign against black Africans. 70,000 civilians were killed and over one million made homeless in a campaign that many describe as ethnic cleansing or genocide.

Chechen militants took about 1,000 schoolchildren hostage for a three-day siege in September. The siege ended in chaos and bloodshed, with over 300 schoolchildren killed.

Palestinian Authority leader Yasser Arafat died. The intifada increased in strength, and Israeli Prime Minister Ariel Sharon announced plans to withdraw from the Gaza Strip.

India's Prime Minister Resigns (May 13): Indian National Congress Party prevails in parliamentary elections. Premier Atal Bihari Vajpayee steps down.

Venezuelan President Hugo Chavez is re-elected in a referendum after being ousted in 2003.

In Haiti, Jean-Baptiste Aristide is ousted as president, and power is turned over to an interim government. US sends peacekeepers, which are replaced by UN troops.

Voters in Ukraine overturned presidential election results, and Viktor Yushchenko was elected President in a second election.

President George W. Bush defeated challenger John Kerry in the United States presidential elections.

Indonesia elected a new president, retired general Susilo Bambang Yudhoyono, who soundly defeated incumbent president Megawati Sukarnoputri.

Afghan leaders approve a new constitution, and Hamid Karzai was elected president of Afghanistan in the country’s first presidential elections. Insurgent attacks on U.S forces continued.

American troops struggled to contain an insurgency in Iraq, and an interim government under Prime Minister Ayad Allawi was established in June. UN Secretary General Kofi Annan says the war was illegal and violated the UN charter. In their final report, inspectors say they found no evidence of weapons of mass destruction programs. Investigators of the UN sponsored Oil-for-Food program in Iraq charge corruption.

Photographs reveal abusive behavior towards Iraqi prisoners at Abu Ghraib prison in Iraq, sparking outrage throughout the world. Red Cross and others charge abuse at Guatanamo prison camp.

European Union expands with ten new members, bringing the total to 25.

Controversy over the extent of stem cell research and same-sex marriages continued in the United States. The federal budget deficit reached historic high levels.

The 9/11 Commission released the results of its investigation of the September 11, 2001 terrorist bombings.

The 2004 Summer Olympics were held in Athens, Greece, birthplace of the Olympic Games.

60th Anniversary of the D-Day landings in Normandy.

Report by the United Nations Development Program finds that life expectancy has dropped to below 40 and poverty on the rise in seven countries hit hardest by AIDS. Countries include Zimbabwe, Swaziland, Zambia, Malawi, Central African Republic, and Mozambique.

Pakistan is accused of selling nuclear secrets to North Korea, Iran and Libya.

A massive earthquake near the Indian Ocean sparked tsunamis which devastated large parts of India, Sri Lanka, Indonesia, Thailand, and other Indian Ocean states. Nearly 140,000 people die in a dozen nations in Asia and East Africa, and millions are left homeless. Indonesia heaviest hit, with 100,000 casualties.

2004

January 6

World Bank welcomes new constitution in Afghanistan

World Bank President James D. Wolfensohn congratulated the people of Afghanistan and President Hamid Karzai on the approval of a new constitution. Wolfensohn noted the dialogue and compromise that had characterized the drafting and ratification of the document, saying this deliberative process had set a critical precedent for resolving deeply-felt differences in the country.

In a letter delivered to President Karzai, Wolfensohn said the agreement on the constitution bodes well for Afghanistan’s future and wished the Afghan people every success in its implementation and in further developing processes of governance to support it.

He reiterated the World Bank’s commitment to support Afghanistan’s reconstruction and development. The new constitution and the trend towards national reconciliation it embodied, would in turn support Afghanistan’s security and counter-narcotics agendas and lead to a more secure environment for further reconstruction and development, he said.

Since April, 2002, the World Bank has committed almost half a billion dollars to development projects in Afghanistan. Of this, US$282 million is in grants and US$220 million in no-interest loans. The projects are helping to meet urgent needs by providing jobs, improving roads, increasing the power supply, cleaning up municipal waste, repairing schools and improving health services. They are also building a foundation for the future by working to mobilize communities, strengthen public administration, reform customs and further develop national programs in highways, civil aviation, telecommunications, and irrigation.

2004

January 13

Bribery conviction in Sweden

The World Bank issued the following statement on the conviction of two individuals on bribery charges in connection with the misuse of World Bank trust funds:

"The World Bank welcomes Monday's decision of the district court in Huddinge, Sweden, to convict two individuals of bribery in connection with the misuse of World Bank trust funds. This verdict should serve as a clear warning that the World Bank is strongly committed to fighting fraud and corruption, and that we will ensure, to the best of our ability, that any such incidences are fully prosecuted.

We have vigorously pursued this particular investigation since the allegations were first reported to the World Bank's Fraud and Corruption Hotline in 1999. In 2000, the World Bank terminated the employment of three of its own staff members involved in the matter, and referred this case to the U.S. and Swedish authorities. The World Bank has cooperated fully with the authorities, and a World Bank staff member testified at the trial in Sweden at the request of the prosecution. Two of the former staff members had already pled guilty to charges in U.S. district court, and now two individuals in Sweden who were involved in the firms that received World Bank contracts - financed by Consultant Trust Funds - have been convicted of making payments to the former staff members.

In 2001, the World Bank permanently debarred seven Swedish firms, one Dutch firm, and two individuals from future business with the World Bank. In addition, the World Bank reimbursed the Swedish Development Agency for all the Consultant Trust Funds affected by this case. After an internal audit and an external review of the World Bank's administration of trust funds, the World Bank implemented significant policy and procedural reforms to enhance administration of the monies entrusted to its care.

The World Bank expresses its appreciation for the efforts of the Swedish prosecutor, Mr. Christer van der Kwast, in bringing this case to closure."

January 15

Low Income Countries Under Stress (LICUS) Trust Fund established

The World Bank established a $25 million Trust Fund to strengthen institutions, support early efforts at policy reform and build capacity for social service delivery in the world’s poorest countries. These countries, collectively known as Low Income Countries Under Stress (LICUS), are characterized by very weak institutions and governance, and constitute the most difficult environments in which to use aid effectively. The Trust Fund will target those LICUS countries that are not eligible to receive International Development Association (IDA) funding due to their arrears with the Bank. The Trust Fund will be financed by transferring funds from the Bank’s surplus for FY03 and will operate until the end of 2007. The Trust Fund will work closely with the support available from other donor agencies, ensuring close collaboration with our partners, in particular the UN system.

The Bank's LICUS initiative aims to support selective basic governance reforms and innovative mechanisms for social service delivery:

Capacity building to support governance reform. This will include supporting dialogue between national stakeholders on economic, social and governance issues; dialogue between national stakeholders and the donor community; technical assistance to design and implement basic civil service, public finance or judicial reforms; training for leadership and technical counterparts; data collection and analysis to support key reforms, and; information dissemination on key reform areas.

Strengthening social service delivery, including the fight against HIV/AIDS. Basic service delivery is often an area that can attract domestic political consensus for action despite ongoing conflict or impasse at the political or electoral levels. Effective institutions for service delivery can deliver visible benefits to the population, acting to recreate hope in accountable and collective public action. Well-designed service delivery programs can also be resilient to fluctuations in the political situation, and they provide a more cost-effective option for social protection than repeated waves of humanitarian aid.

January 21

Strategic Partnership for Africa (SPA) meeting in Tunis

Countries and organizations comprising the Strategic Partnership with Africa (SPA) today renewed their commitment to increase aid to Africa and improve its impact on reducing poverty in the continent.

Hosted by the African Development Bank, the SPA held its annual plenary meeting on January 20-21, 2004 in Tunis, Tunisia. The Partnership, established in 1987, is the principal forum for aid mobilization and coordination for Sub-Saharan Africa. The meeting reviewed progress on the goals agreed at its last meeting in January, 2003, in Addis Ababa, Ethiopia, and agreed on its program for the coming year. The meeting noted the importance of reaching a new global trade accord, with a phase-out of agricultural subsidies to level the playing field for Africa’s exporters and better market access, initially through less restrictive rules of origin. The meeting discussed ways of improving the predictability of aid, streamlining conditionality and ensuring that aid was increasingly channeled through national systems, as those systems became more accountable to parliaments and stakeholders. It also discussed ways in which African governments and their external partners could hold each other mutually accountable for results.

Participants included: The World Bank, IMF, African Development Bank, Belgium, Benin, Burkina Faso, Canada, Denmark, UN Economic Commission for Africa, Ethiopia, European Commission, Finland, France, Germany, Ghana, Ireland, Japan, Kenya, Mozambique, Netherlands, Norway, OECD/DAC, Rwanda, Senegal, Sierra Leone, Sweden, Switzerland, Tanzania, Uganda, United Kingdom, UNDP, United States of America.

January 23

Debt relief for Nicaragua

The World Bank’s International Development Association (IDA) and the International Monetary Fund (IMF) agreed this week that Nicaragua has taken the steps necessary to reach its completion point under the enhanced Heavily Indebted Poor Countries (HIPC) Initiative. Debt relief under the enhanced HIPC Initiative from all of Nicaragua’s creditors will amount to approximately US$4.5 billion over time. Nicaragua becomes the tenth country to reach its completion point under the enhanced framework of the HIPC Initiative, joining Benin, Bolivia, Burkina Faso, Guyana, Mauritania, Mali, Mozambique, Tanzania and Uganda. IDA will provide debt relief under the enhanced HIPC Initiative amounting to US$382.6 million in debt service relief (US$190.9 million in net present value (NPV) terms (2)), to be delivered through a 90 percent reduction in debt service on IDA credits from 2001 through 2023. The IMF will provide debt relief of approximately US$106.5 million (US$82.2 million, or SDR 63.5 million, in NPV terms) on payments falling due to the IMF during 2002–09. The remaining bilateral and multilateral creditors are also expected to provide their share of relief required under the enhanced HIPC Initiative.

In recognition of the government’s satisfactory progress in implementing sound macroeconomic and structural policies under the enhanced HIPC Initiative, Nicaragua’s total external debt is to be reduced by approximately 73 percent in NPV terms.

January 23

Extractive Industries review

The World Bank Group (WBG) welcomed the completion of an extensive independent report on stakeholder views regarding the development institution’s role in the extractive industries and commended Dr. Emil Salim for his leadership in preparing the review.

The independent stakeholder report is the final part of a multi-year appraisal process that was supplemented by several internal reviews and audits of WBG performance in extractive industries projects.

In response to concerns about its role in some extractive industries projects, the Bank Group agreed in 2000 to a comprehensive review of its activities in the sector that would include various stakeholders, including governments, industry, indigenous peoples, nongovernmental organizations and other civil society entities.

The stakeholder consultation process led by Dr. Salim included:

- Five regional multi-stakeholder workshops (Africa, Asia, Europe/Central Asia, Latin America, Middle East/North Africa);

- A large number of ad hoc meetings with a wide range of stakeholder groups;

- Internet posting of submissions and views from interested groups;

- Project site visits;

- Research on select issues, such as a collection of indigenous peoples’ experiences with extractive industries projects and an in-depth review of the views of two mining communities in Europe and Latin America.

January 26

African Stockpiles Program (ASP) on obsolete pesticides

The Africa Stockpiles Programme (ASP) today announced that the European Union has contributed 1 million EUROS to the recently established Multi-Donor Trust Fund, becoming the first ASP partner to deliver on its pledge to help launch the program. The ASP is an unprecedented partnership between industry, governments, private foundations, civil society, and international organizations, who have agreed to pool resources and expertise in a collaborative, comprehensive effort to rid Africa of polluting stockpiles of obsolete pesticides. The objective of the ASP is to clear all obsolete pesticide stocks from Africa in an environmentally sound manner, and to put in place measures to prevent their recurrence. An initial $48 million committed by the partnership will be used to prepare programs and to clean up six African countries (Ethiopia, Mali, Morocco, South Africa, Tanzania, and Tunisia), as well as prepare nine more for clean up. Major initial financial contributors include the Global Environment Facility (GEF), CropLife International, and the governments of Belgium, Japan, Canada, France, Finland, Norway, Sweden, and Switzerland.

January 29

Iraqi Trust Fund

The World Bank’s Board of Executive Directors authorized the Bank to act as an administrator for the Iraq Trust Fund which will finance a program of emergency projects and technical assistance. The program is contained in the World Bank’s Interim Strategy for Iraq. It includes not only specific projects and technical assistance to be financed by the trust fund but also a program of economic and sector work aimed at laying the groundwork for an expanded development assistance program in the near future. The Interim Strategy builds on the Bank’s previous work in Iraq during 2003 and outlines a Bank-sponsored work program for Iraq for the next six to nine months.

February 17

Central American Free Trade Agreement (CAFTA) conference

The World Bank and the United Kingdom’s Department for International Development co-sponsored a conference entitled Opportunities and Challenges of CAFTA for Central America in San Salvador. Central American Ministers of Commerce and government authorities met with officials from the private sector, academia, civil society, as well as representatives from multilateral agencies to analyze how Central American countries could gain from the proposed Central America Free Trade Agreement (CAFTA). The conference discussed recent World Bank research on lessons learned from NAFTA, the legal and institutional changes that CAFTA would require in Central American countries, the effects of free trade agreements on the rural economies of developing countries, and economic policy options in Central America.

February 24

The Birds of Lao – World Bank Biodiversity field guide

To help raise awareness of and concern for the conservation of biodiversity ― the animals and plants that play a vital role for life on earth ― the World Bank biodiversity field guides program launched its latest guide, The Birds of Lao PDR, at an event in Vientiane today. The book was produced through a partnership between the Vientiane office of the Wildlife Conservation Society (WCS) and the Hanoi office of BirdLife International, with additional assistance from the EU-financed ASEAN Regional Centre for Biodiversity Conservation.

The book, available only in the Lao language, is the 50th in the World Bank-supported biodiversity field guide series, which is now in its fifth year. This program seeks to make more widely available information on the biodiversity of its client countries and ensure that these important sources of information are available in the local languages and in an affordable format so they can be enjoyed and used by people from school children to professional scientists.

February 26

Regional integration project for West African nations

The World Bank Group approved a financing package to the Banque Ouest-Africaine de Développement (BOAD), for a project that will support the West Africa Economic and Monetary Union’s efforts (WAEMU) in achieving sustainable growth through the development and integration of infrastructure and capital markets in order to compete in the global economy. WAEMU member countries are Benin, Burkina Faso, Cote d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo.

The WAEMU Capital Market Development Project will support the growth and integration of the region’s financial markets, and improve the mobilization of public and private financing for infrastructure development by providing technical assistance, funding, and instruments to reduce investment risks.

The project will be implemented over the next five years and cost a total of US$408.69 million, financed by several governments and organizations. The World Bank Group’s contribution consists of an International Development Association (IDA) credit of US$96.39 million, an IDA guarantee of US$70 million,­ and a Multilateral Investment Guarantee Agency (MIGA) guarantee of US$70 million.

March 4

President Wolfensohn praises outgoing IMF Managing Director Köhler

Commenting on the announcement from the International Monetary Fund that Managing Director Horst Köhler is resigning from his post effective today, World Bank President James Wolfensohn expressed his appreciation for Mr. Köhler’s contribution to the global development effort and praised his leadership of the IMF.

"On behalf of the World Bank Group, I would like to express my deep appreciation to Horst Köhler for his great efforts over these past four years," said Wolfensohn. "I have enjoyed enormously working with him and he has made a tremendous contribution to the cause of global economic development. Thanks in large part to his efforts, the IMF and the World Bank have been able to forge a very strong partnership that has been of great benefit to all our member countries --and it is a partnership that will continue well into the future. Horst is a great leader, a valued colleague and a good friend. I wish him, Eva and the family all the very best as they look forward to new challenges in the future."

Mr. Köhler announced his resignation from the IMF today following his acceptance of the nomination for the office of President of the Federal Republic of Germany. He assumed his office as IMF Managing Director on May 1, 2000.

March 14

Second Knowledge for Development Forum for Middle East and North Africa; Knowledge Hub inaugurated

The second annual Knowledge for Development Forum was held in the French city of Marseilles March 14-16, to engage countries of the Middle East and North Africa (MENA) region in a dialogue on how to take advantage of knowledge-based economies as they move towards greater integration with the global economy. The forum was sponsored by the World Bank in partnership with the Institut de la Méditerranée and the City of Marseilles. The Forum also coincides with the inauguration of the Middle East and North Africa Knowledge Hub in Marseilles by the World Bank and the City of Marseilles. The Knowledge Hub aims to respond to the challenges of globalization faced by MENA countries by facilitating the exchange of global knowledge and learning services, and connecting people, firms, institutions in the Middle East, North Africa and Europe. It will be managed by the World Bank Institute, the training arm of the World Bank Group.

March 16

President Wolfensohn travels to Turkey

World Bank Group President James Wolfensohn visited Turkey from March 14 to 16th 2004. He was accompanied by Mr. Andrew N. Vorkink, World Bank’s Country Director for Turkey and by Mr. Khosrow Zamani, Director for Central and Southern Europe at the International Finance Corporation (IFC). The purpose of the visit was to attend Turkey’s Investment Advisory Council Meeting hosted by the Turkish Government in Istanbul.

Addressing the participants at the opening session, Mr. Wolfensohn emphasized the importance of the meeting that had brought Turkey’s leaders together with the heads of the international and domestic business community to demonstrate their mutual commitment to strengthen the investment climate. Praising Turkey’s tremendous improvement in stabilizing the economy after the 2001 crisis, as well as the impressive achievements in terms of economic growth, deceleration of inflation and decline in interest rates, Mr. Wolfensohn emphasized the importance of renewed momentum in implementation of structural reforms and of the privatization program that could serve as important vehicles for increased Foreign Direct Investment flows.

March 19

President Wolfensohn travels to Ghana

President Wolfensohn met with heads of States and government for the Economic Community of West African States (ECOWAS) in Accra, Ghana March 19-20th to push for accelerated regional integration and the implementation of the New Partnership for Africa’s Development (Nepad) in West Africa. The leaders agreed to a short-term plan of action focused on three priorities:

 establishment of a free trade area and customs union by the end of 2007, along with improved international market access for West African exports;

 implementation of flagship infrastructure projects in energy, transport and telecommunications, including the West Africa Gas Pipeline, the West Africa Power Pool, along with full compliance with the Interstate Road Transit Convention;

 peace and security measures, including the establishment of a Peace Fund to support conflict prevention and resolution.

ECOWAS and the World Bank will establish a joint task force to monitor progress on the priority areas, and to regularly review integration projects. Mr. Wolfensohn said that the Bank has earmarked $450 million for regional projects in poor countries, adding that a number of the projects will be in the ECOWAS sub region. In addition the World Bank has US$2.3 billion in infrastructural projects under supervision and in preparation in ECOWAS countries.

Mr. Wolfensohn also stressed the importance of capacity-building, a crucial element in ensuring that ECOWAS priority programs are implemented successfully. He called on the ECOWAS countries to coordinate capacity-building strategies, and promised that the World Bank would help mobilize support for plans emerging from that effort.

March 22

Trade liberalization conference opens in Chile

An international conference on The future of trade liberalization in the Americas opened in Santiago, Chile with ministers, university professors and regional businessmen in attendance. The purpose of the conference, jointly organized by the Central Bank of Chile and the World Bank, was to analyze the current state of trade policy and the commercial negotiations underway among individual Latin American countries, and between Latin America and the United States and Canada.

The World Bank is currently supporting 32 trade facilitation projects in 28 countries, with financing totaling US$500 million. Moreover, there are 100 active projects supporting trade policy and institutional reforms in 59 countries, with financing totaling US$2,200 million.

March 22

President Wolfensohn travels to Nigeria

World Bank president Wolfensohn traveled to Nigeria for a three-day visit, in which he held meetings with President Obasanjo, the government’s economic team, civil society organizations, and youth leaders. Mr. Wolfensohn also visited Aba in Abia State, where he met with the governor and with a group of local entrepreneurs, and had a aerial tour of the Niger Delta, followed by a meeting with community leaders from that area. Wolfensohn expressed confidence in Nigeria’s emerging program for economic development and reform, and said that the Bank is prepared to invest as much as $1 billion over the next two years to support the effort. In an address to Cabinet and Parliamentary leaders, the World Bank president congratulated the government’s economic team on its recently unveiled National Economic Empowerment and Development Strategy (NEEDS) and strongly endorsed the participatory process through which the team is consulting with stakeholders throughout the country. He stressed the importance of the program’s success, not only for Nigeria, but for all Africa. "If Nigeria succeeds, as I expect and hope it will," he said, "then that will change the face of Africa," noting that one out of five Africans is a Nigerian.

March 23

Global Learning Conference in Shanghai announced

As part of a global learning process that aims to accelerate efforts in reducing poverty by assessing best practices and sharing valuable knowledge among developing countries, officials from the World Bank and the Government of China announced a conference to be held in Shanghai next May 25-27. The World Bank, along with its partners, is sponsoring this conference because it is critical to "unlock" knowledge in order to expand or "scale-up" development results across regions and countries. For the first time developing country practitioners and policymakers from around the world will share their expertise about what works, what doesn’t, and why, analyzing 70 cases of poverty reduction and identifying key success factors throughout those efforts. The main goals of the Conference are to uncover the economic, social, and governance components that enabled some countries to reduce poverty on a large scale; to share these lessons across regions and countries; and to disseminate them widely to policymakers, practitioners, and researchers. The Conference in Shanghai will bring some 600 participants together around a series of case studies illustrating successful and not so successful examples, providing high visibility to approaches that really worked in reducing poverty on a large scale within various economic, social, and institutional contexts.

March 24

Strategy for Afghanistan reconstruction

World Bank President James D. Wolfensohn congratulated the Government of Afghanistan on the release of a report outlining a comprehensive seven-year development agenda. Mr. Wolfensohn said the Afghan Government’s latest report, Securing Afghanistan's Future: Accomplishments and the Strategic Path Forward, set out the needs of the country for the next seven years "clearly and realistically".

"Their targets are ambitious but achievable," he said. "We in the World Bank remain committed to working with the Government and its donor partners towards these noble and important goals. This framework, developed in partnership with the international community, provides a clear direction as we move forward. At the upcoming meeting in Berlin, I am confident all Afghanistan's partners will, like us, support this important document: after all, the future of Afghanistan's citizens is the future of us all in an interconnected world. We cannot find our global balance if we leave significant component parts like Afghanistan behind."

The Government report, prepared in collaboration with the Asian Development Bank, the International Monetary Fund, the United Nations Development Program, the United Nations Assistance Mission for Afghanistan and the World Bank, sets out a comprehensive framework for the country’s development. The report goes beyond economic and human development issues such as health, education, infrastructure and private sector development, and also, for the first time, integrates issues related to security, justice, counter-narcotics efforts and human rights. The report outlines costs for 7 years to support a 12-year investment program.

March 30

World Bank issues bonds in Colombian pesos

The World Bank launched its first bond issue in Colombian pesos. The bonds, for an amount of COP 535.6 billion (about USD $200 million), will mature on September 30, 2010. The coupon is linked to the Colombian consumer price index (CPI), and will offer a spread of 4.40% over this index. The issue was 3.56 times oversubscribed, with bids received for a total of COP 1.9 billion.

This bond issue is a milestone for the World Bank. Although the institution has issued bonds in other Latin American currencies such as Mexican peso, Chilean peso and Brazilian reals, this Colombian peso transaction is the first placed exclusively in a domestic market in Latin America. In addition, it is the first World Bank bond issue listed on a Latin American stock exchange - the Bolsa de Valores de Colombia. Previous bond issues in Latin American currencies have been placed and listed in markets outside the region.

April 2

World Bank and IMF agree to enhanced fight against money laundering and terrorist financing

World Bank and the International Monetary Fund agreed to adopt a more comprehensive and integrated approach to conducting assessments of compliance with international standards for fighting money laundering and terrorist financing in member countries, and to step up the delivery of technical assistance to those countries whose financial systems are most at risk. The decision, endorsed by the Boards of the two institutions, builds on the recently completed 12-month joint pilot program of assessments of the international standards conducted in cooperation with international partners that are engaged in combating money laundering and financing of terrorism. Since the pilot began in the summer of 2002, 41 countries have been assessed for compliance with the international standards including 33 assessments conducted by Bank and Fund experts. These assessments were conducted in all regions of the world and included both industrialized and developing countries.

The World Bank and IMF have raised awareness of the importance of international cooperation to counter money laundering and terrorist financing. The Bank and Fund collaborated with many partner organizations in responding to requests for technical assistance, including the UN Office of Drug Control, the Commonwealth Secretariat, FIRST (a multi-donor trust fund for implementation of financial codes and standards in developing countries), bilateral donors such as the Japanese, Dutch and Italian governments. During the past year, the Bank and Fund responded to requests from more than 100 countries to help them build institutional capacity to fight money laundering and terrorist financing. The Bank and Fund each plan to carry out 10 money laundering and terrorist financing assessments per year as part of the joint Bank/Fund Financial Sector Assessment Program (FSAP) or for the Fund also as part of its initiative for offshore financial centers (OFC). The FSAP and OFC programs include assessments of other international financial sector standards, such as the Basel Committee standards for banking supervision.

April 7

African Development Indicators 2004 released

The World Bank released its 2004 version of African Development Indicators. The report showed a diverse picture of development in Africa, with several countries making remarkable progress and others lagging seriously behind. Civil wars, the rapid spread of HIV/AIDS, anemic aid, persistent low growth rates and weak commodity prices, threaten gains of the recent years in overall poverty alleviation and may jeopardize Africa’s chances of attaining some of the Millennium Development Goals (MDGs) by 2015.

Thirteen Sub-Saharan African (SSA) countries averaged more than 5 percent growth for the period 1995-2002, but many others saw their economies contract, usually as a result of severe civil conflict and adverse weather conditions. The region’s economic growth slowed in 2002 to 2.8 percent, slightly down from 2.9 percent in 2001.

Gross national income (GNI) per head, for example, averaged $650 in 2002 for all of Africa, but stood at only $307 per head in SSA excluding South Africa. GNI ranged from under $100 per head in the Democratic Republic of Congo to over $7000 in Seychelles. Maternal mortality ranges from as low as 45 per 100,000 births in Mauritius to 2,300 per 100,000 births in Rwanda. The report showed that half of the region’s population still lived in extreme poverty and Africa contained about three-quarters of the world’s poorest countries.

The publication notes that Africa urgently needs rich nations to deliver on their promises of more generous aid and wider trade opportunities to reverse the exacting cruelty of disease and poverty on the continent.

ADI 2004 presents data for more than 500 indicators of development for 53 countries.

April 8

Debt relief for Niger

The World Bank's International Development Association (IDA) and the International Monetary Fund (IMF) have agreed this week that Niger has taken the steps necessary to reach its completion point under the enhanced Heavily Indebted Poor Countries (HIPC) Initiative. Niger becomes the eleventh country to reach this point, joining Benin, Bolivia, Burkina Faso, Guyana, Mauritania, Mali, Mozambique, Nicaragua, Tanzania, and Uganda.

Total debt relief under the enhanced HIPC Initiative from all of Niger's creditors amounts to US$1.2 billion in nominal terms. This assistance is equivalent to a reduction in net present value (NPV) terms of US$520.6 million agreed at the decision point, plus a topping-up of the assistance in an amount equivalent to US$142.5 million in NPV terms, approved at the completion point.

The additional assistance under the topping up framework has been exceptionally granted on account of exogenous factors that have fundamentally changed Niger’s economic circumstances and thereby adversely affected Niger’s debt sustainability, raising the NPV of debt-to-exports ratio at end-2002 substantially above the 150 percent target set out under the enhanced HIPC framework. These factors included: (i) a decline in uranium exports, (ii) lower SDR and U.S. dollar discount rates, and (iii) a shortfall in external grant financing, which was partially compensated for with an increase in disbursements from highly concessional loans. Despite the implementation of prudent policy responses, Niger’s external debt situation could have become unsustainable without the provision of additional assistance under the topping up framework.

Multilateral creditors would provide debt relief amounting to about US$680.2 million in nominal terms, of which US$408.7 million from the World Bank and US$59.9 million from the IMF. Paris Club creditors are expected to grant debt relief amounting to US$300 million. In addition, several Paris Club creditors have indicated their intention to provide additional relief beyond the HIPC Initiative (estimated to total about US$33.0 million) and three of them are already providing that complementary relief, namely France, the United Kingdom and the United States. Non-Paris Club creditors are expected to provide debt relief estimated at US$210.3 million.

April 12

Corruption conviction in Lesotho Highlands Water Project

The World Bank has taken note of the decision of the Court of Appeals of Lesotho to uphold the conviction of Lahmeyer International GmbH on several counts of bribery connected to the Lesotho Highlands Water Project. Lahmeyer had received a Bank-financed contract on the Highlands Water Project.

In early 2002, the World Bank's Sanctions Committee determined that the information available to it at that time was not sufficient to conclude that Lahmeyer had engaged in corrupt practices. Therefore, the Bank has not declared Lahmeyer ineligible to be awarded future Bank-financed contracts. The Sanctions Committee stated that it would re-examine its findings in light of any additional relevant information that might surface from any source, including the public proceedings conducted by the authorities in Lesotho.

The World Bank applauded the commitment demonstrated by the Government of Lesotho to fight corruption through the judicial system. The World Bank cooperated with the Government throughout its investigation, and the World Bank continued to finance the development of the Lesotho Highlands Water Project.

April 13

"Harmonizing Approaches to Health in Africa" - Women’s health in Africa

The World Bank sponsored a dialogue on "Harmonizing Approaches to Health in Africa". Thirty-five African ambassadors attending the session urged governments and donors to intensify efforts to improve women’s health in Africa. The ambassadors planned follow-up activities, including advocacy on the part of the ambassadors to ensure that African leaders champion this agenda and that it is taken beyond mere mention in the NEPAD initiative to action on the field. The ambassadors will advocate concrete and urgent action within their respective countries while building effective partnerships with donors to advance women’s health in Africa as a key condition for achieving the MDGs.

April 15

Latin American Conference on Infrastructure Financing co-sponsored by World Bank

The Latin American Conference on Infrastructure Financing was held in Buenos Aires April 15-16. The conference was co-sponsored by the Investment and Foreign Commerce Bank of Argentina (Banco de Inversión y Comercio Exterior, or BICE), the Peruvian-based Latin American Association of Financial Institutions for Development (Asociación Latinoamericana de Instituciones Financieras para el Desarrollo, or ALIDE), and the World Bank. Delegates and experts from some 30 countries were expected to attend. The impact of infrastructure on economic growth, competitiveness and inequality were discussed. World Bank research indicated that with infrastructure stock declining, the countries of Latin America and the Caribbean needed to increase investment in transport, telecommunications, electricity, and water and sanitation, in order to reverse inequality and improve per capita income growth.

April 19

Extractive Industries Review

Dr. Emil Salim and World Bank President Wolfensohn made the following statement on the Extractive Industries Review:

We met today and had an amicable and productive exchange of views on the Extractive Industries Review. We agreed strongly that we share the same principles in terms of our commitment to alleviating poverty, protecting the environment, improving people’s lives, and supporting equitable growth. In that context, we also agreed that the report is an extremely useful document and a fine basis for our future discussions and actions.

We made good progress in discussing the report's main directions and we are in broad agreement in terms of the critical enabling conditions that must be in place to ensure that projects in the extractive industries contribute to poverty reduction. At the same time, there remain some issues on which further discussion will be needed. We expect to make progress on these matters.

We both recognize that the World Bank Group has a crucial leadership role to play in the extractive industries and in supporting poverty alleviation through sustainable development. Our mutual goal is to ensure that we collaborate on practical proposals that can be implemented with governments, the private sector, and civil society in full partnership.

With that objective in mind, we will continue with our consultations and we have agreed to meet again in June of this year--after the Bank's management has had an initial opportunity to discuss the report with the Committee on Development Effectiveness of the Board of Executive Directors and prior to the World Bank Group’s formal response.

Dr. Emil Salim, Eminent Person, Extractive Industries Review

Mr. James D. Wolfensohn, President, World Bank Group

2004

April 19

Debt relief for Senegal

The International Monetary Fund (IMF) and the World Bank’s International Development Association (IDA) agreed that Senegal has taken the necessary steps to reach its completion point under the enhanced Heavily Indebted Poor Countries (HIPC) Initiative. Senegal becomes the 12th country to reach this point, joining Benin, Bolivia, Burkina Faso, Guyana, Mali, Mauritania, Mozambique, Nicaragua, Niger, Tanzania, and Uganda. Total debt relief under the enhanced HIPC Initiative from all of Senegal's creditors amounts to US$850 million in nominal terms. This assistance is equivalent to a reduction in net present value (NPV) terms of US$488 million as agreed at the decision point, which now becomes irrevocable. Senegal qualified under the fiscal criterion and the debt relief was calculated to bring the NPV of debt-to-fiscal revenue ratio down to the HIPC threshold of 250 percent.

Of the total HIPC relief of US$488 million in NPV terms, about US$276 million would be provided by multilateral creditors, US$126 million by Paris Club creditors, and US$86 million by non-Paris Club creditors and commercial creditors. The World Bank (IDA) is delivering its share of HIPC assistance by providing US$163.8 million in debt service reductions during 2000-10. The IMF is delivering close to US$50 million in debt service grants through the PRGF-HIPC Trust. In addition, many Paris Club creditors have indicated their intention to provide additional relief beyond the HIPC Initiative (estimated to total about US$400 million in NPV terms).

April 19

Global Development Finance 2004 report issued

The World Bank released its annual report Global Development Finance 2004. The study indicated that net private capital flows to developing countries as a whole rebounded to $200 billion in 2003, up from $155 billion in 2002, but most of the increase is concentrated in just a few relatively better-off countries, while official development assistance to poor nations increased only marginally. The increase in net private flows — bonds and bank loans — most of which went to Brazil, China, Indonesia, Mexico and Russia, is the major factor in an overall increase in net capital flows to developing countries from all sources, public and private, to $228 billion in 2003 from $190 billion in 2002. Net private capital flows rose to all developing regions, except the Middle East and North Africa. These increases are due partly to low interest rates in the industrial countries, and reflect a strengthening global economic recovery. They have also been prompted by sounder fiscal policies in many developing countries, as well as structural reforms.

The report showed that Africa’s economic growth slowed to 2.4% last year due to a climate related agricultural downturn and setbacks from armed conflicts. However, the report predicts

that economic growth in sub-Saharan Africa will pick up this year, rising to 3.4%, and again in 2005.

April 21

Earth Day 2004

On Earth Day 2004, the World Bank called for speeding up global action to fight diseases caused by outdoor and indoor air pollution, and unsafe water – conditions which are affecting the health and lives of millions of children in poor and middle-income countries. Ian Johnson, World Bank Vice President for Sustainable Development said: "This is a global problem that the international community urgently needs to put an end to, because children’s lives depend on it. Progress is happening, but it is still too slow. Solutions require coordination across different sectors, including the need for changing behaviors on the ground. Better infrastructure and energy services for households and communities are needed for mitigating the most daunting environmental risks to health."

According to the World Bank’s Environment Strategy, over one million people die annually from vector-borne malaria, with the vast majority of deaths occurring in poverty-stricken Africa. Another million people die from urban air pollution, and, of the urban populations, there is reason to believe that it is the urban poor who suffer the most.

April 22

Global Monitoring Report 2004 issued

The World Bank’s Global Monitoring Report 2004 was released. The report warned that, on current trends, most developing countries would fail to meet most of the Millennium Development Goals that serve as targets for the global effort to reduce poverty and improve services for the poor by 2015. The report described an urgent need to scale up action on the part of rich and poor countries, and the international financial institutions such as the Bank and Fund.

The agenda proposed by the Global Monitoring Report has three essential elements:

Accelerating reforms to achieve stronger economic growth-progress in Africa will require a doubling of its current growth rate.

Empowering and investing in poor people, by broadening and improving the delivery of basic human services.

Speeding up the implementation of the Monterrey partnership, matching stronger reform efforts by developing countries with increased support from developed countries and international agencies.

The report argued that developed countries must demonstrate leadership by delivering on the promises made at Monterrey Financing for Development conference in 2002, where they pledged to match stronger reform efforts in developing countries with increased support.

April 22

Debt relief for Ethiopia

The International Monetary Fund (IMF) and the World Bank's International Development Association (IDA) agreed that Ethiopia has made sufficient progress and taken the necessary steps to reach its completion point under the enhanced Heavily Indebted Poor Countries (HIPC) Initiative. Ethiopia becomes the thirteenth country to reach this point, joining Benin, Bolivia, Burkina Faso, Guyana, Mauritania, Mali, Mozambique, Nicaragua, Niger, Senegal, Tanzania, and Uganda. Total debt service relief under the enhanced HIPC Initiative from all of Ethiopia's creditors amounts to approximately US$3.3 billion in nominal terms. This assistance is equivalent to a reduction in net present value (NPV) terms of US$1.3 billion agreed at the decision point, plus a topping-up of the assistance in an amount equivalent to US$0.7 billion in NPV terms, approved at the completion point. The exceptional additional assistance under the topping up framework has been granted on account of exogenous factors—particularly changes in the discount rate and exchange rate since the decision point—that have fundamentally changed Ethiopia's economic circumstances and thereby adversely affected its debt sustainability. Including topping-up of the HIPC Initiative assistance, multilateral creditors would provide debt relief amounting to about US$1.3 billion in NPV terms, of which US$60.9 million is from the IMF and US$0.8 billion from the World Bank (equivalent to US$1.3 billion in nominal terms). Bilateral and commercial creditors would provide debt relief amounting to US$0.7 billion in NPV terms. In addition, most Paris Club creditors have indicated their intention to provide additional relief beyond the HIPC Initiative (estimated to total about US$0.3 billion in NPV terms).

April 23

World Development Indicators 2004 released

The World Bank's annual statistical report, World Development Indicators 2004 (WDI) was released. The report shows the proportion of people living in extreme poverty (less than $1 a day) in developing countries dropped by almost half between 1981 and 2001, from 40 to 21 percent of global population. But while rapid economic growth in East and South Asia has pulled over 500 million people out of poverty in those two regions alone, the proportion of poor has grown, or fallen only slightly, in many countries in Africa, Latin America and Eastern Europe and Central Asia. This uneven progress raises concerns that the eight Millennium Development Goals (MDGs) approved by 189 nations in 2000, the first of which is to reduce the 1990 poverty rate by half by 2015, may be beyond reach for some countries.

April 24

West African Capital Market Development project

Eight West African countries of the West African Economic and Monetary Union (UEMOA) received a US$408.69 million package to promote regional integration, develop capital markets, and mobilize public and private financing for infrastructure development. UEMOA member countries include Benin, Burkina Faso, Cote d’Ivoire, Mali, Niger, Guinea-Bissau, Senegal, and Togo. One part of the five-year (2004-2009) UEMOA Capital Market Development Project will provide funding for high impact, environmentally sound public projects, notably in the road sector. The technical assistance component of the project will strengthen the regulatory framework for capital market operations and improve coordination among institutions involved in these markets. It will assist the West African Development Bank (BOAD) to evolve from a donor-resource-dependent institution to one capable of mobilizing resources for development in a sustainable manner. The Guarantee facility will help catalyze longer-term private investments in small and medium-sized infrastructure and privatization projects in the UEMOA member countries by attracting and covering private capital against political and certain commercial risks.

April 25

Roll Back Malaria / Africa Malaria Day

International celebrities Dikembe Mutombo and Youssou N'Dour participated in Africa Malaria Day events aimed at increasing awareness, protection and better treatment for malaria. Africa Malaria Day is commemorated by a variety of activities organized by a wide range of groups including governments, non-governmental organizations, schools and communities, in both malaria-endemic and industrialized countries. Previous activities have included parades, rallies, poster competitions for children, radio and television phone-in sessions, awards ceremonies honoring health workers and/or agencies, press conferences and letter-writing campaigns.

To provide a coordinated international approach to fighting malaria, the Roll Back Malaria Global Partnership (RBM) was launched in 1998 by the World Health Organization, UNICEF, UNDP and the World Bank. The Partnership's goal is to halve the global burden of malaria by 2010, with a particular focus on Africa.

The Partnership now includes governments of countries affected by malaria, bilateral and multilateral agencies, non-governmental organizations, the private sector, and research groups, and has succeeded in raising global awareness of malaria, generating increased resources and achieving consensus on the tools and priority interventions required to control the disease.

On 25 April 2000, African leaders from 44 malaria-endemic countries met in Abuja, Nigeria for the first-ever African Summit on Malaria. At the Summit, they signed the historic Abuja Declaration, which commits governments to an intensive effort to halve the burden of malaria in Africa by 2010 and sets interim targets for the year 2005. To highlight the gravity of the malaria situation on the continent-where 90% of malaria deaths occur-the Summit participants also declared 25 April of each year "Africa Malaria Day".

April 25

Landmark agreement for HIV/AIDS

A major agreement was signed at a meeting in Washington D.C., co-chaired by UNAIDS, the UK and the US, where donors and developing countries agreed to three core principles to better coordinate the scale-up of national AIDS responses. Known as the "Three Ones", the principles are: one agreed HIV/AIDS action framework that provides the basis for coordinating the work of all partners; one national AIDS coordinating authority, with a broad based multi-sector mandate; and one agreed country-level monitoring and evaluation system. Built on lessons learned from over two decades, the "Three Ones" will help improve the ability of donors and developing countries to work more effectively together, on a country by country basis. To date, some AIDS programmes have been developed in isolation by well-intentioned donors, non-governmental organizations and others. Governments of heavily-affected countries have often had to deal with confusing and duplicative demands to show progress. "In order to win the war on AIDS, we must all work together for the common good of poor people living in developing countries," said World Bank President James Wolfensohn. "Donor harmonization is a key component to fight AIDS successfully."

April 26

World Bank warns of fraud schemes using its name

In light of recent developments showing an increasing number of "advance fee fraud schemes" misusing the World Bank Group’s name, the World Bank Group warned the public against investment deals and advanced fee fraud schemes that misuse the institution’s name or claim to be affiliated with the World Bank Group. In several of these schemes, individuals have falsely represented themselves to be "World Bank Auditors" or members of the "World Bank West African Regional Delegation," and have sent faxes to creditors of several West African governments, claiming to be empowered by these governments to repay the government’s past debts. Often official-looking World Bank Group letterheads are used for these faxes. In some cases, the solicitors even use the names of actual World Bank Group staff members to bolster the credibility of the solicitation.

April 27

Public Financial Management Trust Fund established for Palestinian Authority

The World Bank announced the creation of the Public Financial Management Reform Trust Fund. Created at the request of the Palestinian Authority with backing from the international donor community, the Reform Fund has the aim of supporting the Palestinian Authority (PA) in sustaining public services in the face of a severe fiscal crisis, and builds on the successful budget support mechanisms implemented by the European Commission since September 2000 and seeks to mobilize additional donor resources to support the PA’s budget.

April 28

"Little Green Data Book 2004" released

The World Bank released its "Little Green Data Book 2004"  - an annual summary of key economic and environmental indicators.

April 29

Colombia and World Bank sign Master Derivatives Agreement for hedging products

The Republic of Colombia and the World Bank signed a Master Derivatives Agreement (MDA) that will allow the Government of Colombia to use a range of hedging products linked to existing World Bank loans to assist Colombia in managing currency and interest rate risk. The newly signed agreement will enable the Government of Colombia to access a range of risk management products, including currency swaps, interest rate swaps, caps and collars and, on a case by case basis, commodity swaps.

These products offered by the World Bank allow borrowers to use standard market techniques to transform the risk characteristics of their outstanding World Bank loans. In providing these financial products, the World Bank stands between market institutions and its borrowers, entering separate financial contracts with each of them. Borrowers therefore benefit from financial terms that reflect the Bank’s own AAA credit rating.

This is the third master derivatives agreement between the World Bank and one of its member countries.

May 3

Cyclone relief for Samoa

The World Bank approved last week grants and credits of US$ 4.47 million to the government of Samoa to finance emergency recovery efforts needed to assist with cyclone damage. Samoa was hard hit in January 2004 when Cyclone Heta passed within 80 kms of the island. The Bank’s Cyclone Emergency Recovery Project for Independent State of Samoa will help the government of Samoa begin to address the significant infrastructure repair that is now needed. The Infrastructure Emergency recovery Project has three main components:

(i) Repair and improvement of seawalls, re-nourishment of beaches and restoration of the lagoon and reef systems in shoreline areas damaged or threatened by erosion.

(ii) Road rehabilitation or reconstruction, including drainage improvement in affected areas

(iii) Implementation support through specialist consulting services for the investigation, design,

justification and supervision of the recovery of coastal protection measures.

May 7

Inspection Panel report on Yacryreta Hydroelectric

The World Bank Board of Executive Directors discussed the findings of the independent Inspection Panel review of the Yacyretá Hydroelectric Project, and also management’s official response to the review.

The Inspection Panel review of the Yacyretá project was in response to a request from a Paraguayan non-governmental organization representing around 4,000 families who believe their lives and environment are being harmed by the project. This group claimed the Bank violated its own policies and procedures in relation to the design and implementation of the Yacyretá project, which received World Bank loans totaling $878 million between 1979 and 2002.

The Inspection Panel found that the Yacyretá project reservoir did not cause flooding of urban creeks, contaminate the Parana River, or spread diseases; but found that the dam was at times being operated at a slightly higher level than provided for in the project’s legal agreements. The Panel also found that a number of important environmental problems remain at the resettlement sites, including inadequate evaluation of the environmental impacts of roads, water, sewerage and drainage facilities at the resettlement sites. The Panel also found that the Bank fell short on implementing its policy on the resettlement of families and businesses affected by the Yacyretá project.

Bank management noted that some of the project’s problems stemmed from a series of extended economic and political crises in Argentina and Paraguay, and resulting delays and uncertainties that have significantly increased the cost of the project. Currently, a lack of funds is preventing the project operator from completing the project and realizing the full energy-generating capacity from the dam.

Bank management proposed an Action Plan to remedy the shortcomings:

Support of EBY’s social communication program aimed specifically at clarifying what compensation schemes are available to affected communities, reducing uncertainty of those awaiting resettlement, and providing a forum for people to get information and express opinions.

Assist in development of a dispute resolution mechanism that would provide a suitable means of addressing concerns, without undermining the appropriate role of the judiciary as the last resort for dispute settlement.

An improved supervision and monitoring framework that would include twice-yearly Bank supervision missions to Yacyretá, expanded documentation of subjects raised by affected communities, suitable budget capacity for high levels of supervision, and the addition of a civil society specialist and an urban planner to the project team.

May 12

Madagascar’s National Environment Plan is World Bank’s largest environmental grant

The World Bank approved an International Development Association (IDA) Development Grant of US$40.0 million equivalent and a Global Environment Facility (GEF) Trust Fund Grant of US$9.0 million to support the implementation of the third phase of Madagascar’s National Environment Action Plan.

The grant constitutes the single-largest concessional financing package for the environment provided by the Bank in its 60-year history.

The Third Environment Program Support Project, as it is known, is primarily focused on strengthening the results of its previous two phases. It will expand Madagascar’s protected areas network to include key missing habitats, establish conservation sites in natural forests and transfer forest management responsibilities to communities. These will be complemented by measures aimed at reducing existing pressures on natural forests, including reforestation and the scaling-up of the usage of efficient wood-fuel technologies.

May 15

Post-Conflict Fund grant to Iraq for widows

The World Bank today awarded a $50,000 grant from its Post-Conflict Fund to the Iraqi Widow’s Organization (IWO) for a project to improve the livelihoods of young widows with children affected by the recent conflict and violence. The pilot project aims to boost widows’ incomes in the city of Diwaniyah, south of Baghdad, by providing them with microcredit to start their own businesses and training to build skills needed in the job market.

The Post Conflict Fund was established in 1997 to enable the Bank to support countries in transition from conflict to peace and economic growth with the speed and flexibility needed in fragile, post-conflict societies. The Post-Conflict Fund provides grants for planning, piloting and analysis of groundbreaking activities to governments, civil society, NGOs, United Nations and a range of other partners.

May 21

First project financed from Iraqi Trust Fund

The World Bank signed a grant agreement with Iraq’s Ministry of Education to print and distribute textbooks in time for the 2004/2005 school year. Financed by the World Bank arm of the International Reconstruction Fund Facility for Iraq, the $40 million Emergency Textbook Provision Project is the first to be implemented by Iraq through the World Bank-administered trust fund. The textbook project will be complemented by another emergency education project to finance school rehabilitation as well as training and advisory support to Iraqi civil servants in key areas of education reform. In January, the Board of Executive Directors authorized the Bank to administer the Iraq Trust Fund on behalf of donors to finance a program of emergency projects and technical assistance based on an interim strategy. The Trust Fund will finance technical assistance and three emergency projects this year in education, community-based rural infrastructure and reconstruction of infrastructure.

May 21

Global Environment Facility (GEF) grant to Caribbean states for environmental protection

The Global Environment Facility (GEF) and The World Bank (WB) announced today a 5 -year initiative to support the Organization of Eastern Caribbean States (OECS) environmental protection strategy with a US$3.7 million grant from the GEF.

The Protected Areas and Associated Livelihoods project will curb environmental degradation by strengthening the application of environmental safeguards and management capacity in six OECS member countries.

Specific measures to be taken under the grant include: the creation of six new Protected Areas and the start-up of at last 13 sub-projects in and around PAs to reduce environmental pressure on the zones. The sub-projects will also increase and diversify PA-related income to local communities through initiatives such as tourism development; organic farming ventures; training in biodiversity conservation; and increasing environmental awareness among members of the public.

The six participating OECS countries are Antigua and Barbuda; the Commonwealth of Dominica, Grenada; St. Kitts and Nevis; St. Lucia; and St. Vincent and the Grenadines.

May 26

Shanghai Conference: Reducing Poverty, Sustaining Growth

The World Bank and the Chinese government sponsored a major conference on poverty reduction in Shanghai, China. The conference opened with a call for a new commitment from rich and poor countries to cut poverty in half by 2015. World Bank President James Wolfensohn addressed more than 1000 people, mostly from developing countries including the leaders of Brazil, Tanzania, and Bangladesh along with many government ministers, development experts, civil society groups and non government organizations. He warned that the world community must meet the Millennium Development Goals it set for reducing poverty as a matter of self interest: "without alleviating poverty there is no potential for peace and stability."

June 1

World Bank opens Tokyo Development Learning Center

The World Bank launched the Tokyo Development Learning Center (TDLC), a joint initiative with the Japanese Government. The TDLC, which will serve as a knowledge and training center for the region, is the latest addition to the Global Development Learning Network (GDLN), an initiative launched by the World Bank in 2000. Now comprising more than 60 centers around the world, the GDLN makes use of state-of-the-art Information and Communications Technology (ICT) to enable knowledge sharing and collaboration free from geographical constraints. The GDLN utilizes a combination of satellite, fiber and ISDN telecommunications, depending on local availability and cost, to link the network around the world. Making use of videoconferencing facilities and high-speed internet connections, public, private and non-governmental organizations are encouraged to collaborate in seminars, training events and meetings with their counterparts around the world.

June 2

World Bank commits to renewable energy projects

The World Bank Group (WBG) announced today that it will commit to an average growth rate of 20 percent per year over the next five years in its annual financial commitments for renewable energy and energy efficiency projects. The target growth rate was formally announced during the plenary session of the International Conference on Renewable Energies. Woicke noted that achieving the growth rate would require approval of the Bank Group’s Board of Directors.

The Bank proposed the following actions:

a transition from donor-driven subsidy schemes to market-based solutions;

the development of policies and regulations that promote renewable energies and energy efficiency;

openness toward the adoption of new technologies, new partners, and new business models;

elimination of market distortions that keep nations tied to inefficient, financially unsustainable, or environmentally damaging energy regimes; and,

the growth of carbon markets in order to mitigate climate change, accelerate the evolution toward shadow-pricing, and speed the clean energy transformation.

The Bank Group would increase staff capacity, resources, and the performance incentives for renewable programs so that the institution can better execute renewable energy projects. In addition, the Bank Group will report on its renewable energy and energy efficiency operations with sector-specific information and in comparison to the energy investment activities of other institutions or associations.

June 4

World Resources 2002-2004: Decisions for the Earth – Balance, Voice, and Power report released

World Resources 2002-2004: Decisions for the Earth – Balance, Voice, and Power was released in Madrid. The report called for fundamental changes in how decisions are made concerning the world’s natural resources, and stressed the urgent need for such changes to arrest the accelerating deterioration of the world’s environment and to address the crisis of global poverty.

The report called on governments to include the public in decisions that affect ecosystems, and for integration of environmental impacts into economic decision-making. It also identified public access to information from governments, business, and non-governmental organizations as a necessary precursor to improved environmental performance. The report argued that greater transparency and accountability can lead to fairer and more effective management of natural resources.

World Resources 2002-20004: Decisions for the Earth is the 10th in a series of biennial reports on global environment and development issues published since 1984. Since 1988, it has been published jointly by the World Bank, the United Nations Development Programme, the United Nations Environment Programme, and the World Resources Institute.

June 9

World Bank’s State of the Carbon Market 2004 report

World Bank’s State of the Carbon Market 2004 report was issued. The intelligence study shows that the carbon finance market is establishing itself as one of the lynchpins in the fight against climate change. Not even halfway through 2004, more than 64 million tons of carbon dioxide equivalents (CO2e) have been traded – this amounts to nearly three quarters of the 78 million tons transacted in all of 2003. The data clearly shows that the European Union’s Emissions Trading Scheme (EU-ETS) has sent a vote of confidence through the glob