World Bank media contacts:
Natacha Meden (Dili)
+61 407 101 536, nmeden@worldbank.org
Miriam Van Dyck (Washington)
+1 202 458 2931, mvandyck@worldbank.org WASHINGTON DC, JULY 23, 2002 ¾ The Democratic Republic of East Timor became the newest member of the World Bank Group earlier today, when East Timorese Prime Minister Mari Alkatiri signed the Articles of Agreement of the International Bank for Reconstruction and Development (IBRD). The East Timorese Minister of Planning and Finance and World Bank Officials witnessed the signing ceremony, which enables newly independent East Timor to take its place amongst the 184 member countries of the IBRD and to access a wide range of World Bank services. In addition to becoming a member of IBRD, East Timor joined the International Development Association (IDA), the Multilateral Investment Guarantee Agency (MIGA), and the International Centre for the Settlement of Investment Disputes (ICSID). East Timor is expected to soon become a member of the International Finance Corporation (IFC). “East Timor’s reconstruction and political transition since 1999 has been a great success, with a quicker than expected recovery, a positive economic outlook, and prospects of future oil revenues,” said Mr. Jemal-ud-din Kassum, Vice President for the World Bank’s East Asia and Pacific Region. “But the challenges ahead are immense: tackling poverty in a country where more than two in five East Timorese are living below the national poverty line; building a responsive, accountable government that can deliver a national development plan which benefits Timorese citizens, especially the poor; and, over the medium-term, establishing a strong system for the governance of oil and gas revenues to ensure an economically sustainable future for the world’s newest country. The World Bank, along with other partners in the international community, remains committed to assisting the East Timorese government and people in meeting these challenges.” The World Bank has been active in East Timor since 1999, working closely with the East Timorese leadership to plan reconstruction activities and to mobilize grant funds to help the country recover from the devastating violence that followed the 1999 ballot. The World Bank has worked closely with other International Financial Institutions (IFIs), including the International Monetary Fund (IMF), in support of institution-building and poverty reduction. The World Bank is the trustee of the Trust Fund for East Timor (TFET), which in the last two years has channeled around 30 percent of all development aid coming into the country, in the areas of community empowerment, health, education, agriculture, private sector development, infrastructure, water and sanitation, and microfinance. Three overarching principles have guided TFET activities from day one: to maximize East Timorese leadership and participation; to encourage effective donor coordination; and to obtain an appropriate balance between timeliness and quality. Today, the Democratic Republic of East Timor and IBRD also signed a grant agreement for US$5 million for a Transition Support Program (TSP). The TSP will finance an annual program comprising four components: continued poverty reduction planning and improvement in service delivery; governance and private sector development; public expenditure policy and management; and power sector management. These components and the supporting actions reflect priorities identified in the Government’s National Development Plan. They have been identified through a process of consultation with Government departments, led by the Prime Minister, and endorsed by key external partners. A Supplemental Grant Agreement from the Trust Fund for East Timor for an Economic Institutions Capacity Building Project has also been signed today between East Timor and IDA. With the admission of East Timor, membership now totals 184 countries for IBRD, 163 countries for IDA, and 158 countries for MIGA. East Timor will also be the 151st signatory to the ICSID Convention. - |
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