Contacts:
In Washington: Stevan Jackson, (202) 458 5054
sjackson@worldbank.org In Santo Domingo: Alejandra De La Paz, (809) 556-6815, Ext. 256 adelapaz@worldbank.org WASHINGTON, March 23, 2006 – The World Bank’s Board of Directors today approved a $25 million loan to improve the employability of at-risk youth from poor families. The new program intends to offer poor youth an opportunity to break the vicious cycle of poverty that traps so many. During their difficult transition into the labor market, poor youth will benefit from job training, internships, additional education and important life skills that are sought by employers. “The lack of opportunities is resulting in youth turning to risky behaviors which is affecting the Dominican Republic at many levels,” said Caroline Anstey, World Bank Country Director for the Caribbean. “As in all countries in Latin America and Caribbean, there is an urgent need to create equality of opportunities for poor people.” Specifically, the Youth Development Project, building on two successful Dominican initiatives, will focus on two complementary channels to enhance employability: i) providing young people with work experience and life skills through the Youth and Employment Program managed by the Secretary of Labor (SET), and ii) expanding "Second Chance" education programs to complete formal education through night classes provided by the Secretary of Education (SEE). “This important program will equip disadvantaged youth with both the technical skills to gain their first work experience and the life-skills to thrive in the workplace, and life more generally,” said Christina Malmberg Calvo, World Bank Country Manager for the Dominican Republic. “In addition to the program’s focus on private and public sector employers, it will pilot training courses and internships designed to promote entrepreneurship and self-employment, particularly in rural areas where there are few salaried job opportunities.” The new program will assist the Government to improve outreach efforts targeting disadvantaged out-of-school youth by strengthening program coordination, implementation and evaluation of the Secretary of Labor as well as the National Training Institute (INFOTEP). The program will also build up and expand the primary and secondary equivalency programs for adults. “Due to the urgent need to provide more opportunities to at risk youth who have dropped out of school, the World Bank hopes to enhance the quality of existing programs by providing these young people with training, education and first employment opportunities,” said Andrea Vermehren, World Bank Senior Social Protection Specialist and Task Team Leader for the project. “Opportunities such as the Youth and Employment and “second chance” education programs, as well as the ongoing Early Childhood Development Fund build strong complementary measures to ensure that children and youth from poor families get the support to live up to their potential.” The Bank’s focus on poor and disadvantaged youth is complementary to the Inter-American Development Bank’s program to improve Labor Markets and Social Transfers, as well as expand primary and secondary education in the Dominican Republic. The new Youth Development Project comes ten months after the World Bank approved the institution’s Country Assistance Strategy for the Dominican Republic, which projects financial assistance of up to US$360 million between 2006 and 2009, as well as technical and advisory services. The Strategy emphasizes improving competitiveness, and achieving greater social equity through investing in human development and access to basic services. The $25 million project, a Specific Investment Loan, from the International Bank of Reconstruction and Development (IBRD) has a repayment period of 17 years, including a five-year grace period. - | 
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