The World Bank’s Board of Executive Directors discussed on February 16 a new Country Partnership Strategy (CPS) for Ukraine covering the period of 2012-2016. The Strategy proposes an investment lending program in the range of US$ 500 million per annum.  The International Finance Corporation (IFC) is expected to lend additional funds of up to US$ 400 million annually. The CPS also includes analytical and advisory services, and technical assistance, ForUm learned from the WB press office.

“The CPS will support the President’s Economic Reform Program for 2010-2014,” said Qimiao Fan, Country Director for Ukraine, Belarus, and Moldova. “This Program sets an ambitious reform agenda to improve Ukraine’s global competitiveness and meet the expectations of the Ukrainian people. The new strategy aims to assist Ukraine in overcoming implementation bottlenecks that have affected successive reform programs in the past, by strengthening institutions, improving public governance, and supporting a more participatory reform process.”

The new strategy builds on 20 years of co-operation between Ukraine and the World Bank.  Since Ukraine’s independence, progress in economic and social reforms has lagged behind targets and social aspirations. The World Bank Group will assist the government to overcome constraints that prevent the country from reaching its full economic potential. The new CPS aims to demonstrate how open public dialogue in reform formulation, accountability in implementation of policies, and transparency in the monitoring of their impact can yield better development results.  

It is noted that the World Bank Group's assistance will be concentrated in two areas: improving public services and public finances, as well as improving the business climate to unlock Ukraine's economic potential.

According to the press office, the Bank’s efforts will be targeted at achieving improvements in: (i) responsible and sustainable fiscal management; (ii) efficiency of service delivery in health and education and better targeted social assistance spending; and (iii) provision of municipal services (water, sanitation, heating). The World Bank Group will finance investments in public sector infrastructure, work on setting up improved monitoring mechanisms and strengthening governance of public service providers, while supporting intensified dialogue between the government and civil society in key policy areas such as health care reform, water supply, district heating, and public procurement.

Furthermore, the Bank program will build on strong analytical work, with a focus on consultation and consensus building by working closely with a variety of government and non-government stakeholders at both the central and municipal level. Advisory services will target key policy areas such as fiscal, tax, and public financial management; agriculture, land, and business regulations, public enterprise governance; the financial sector, energy efficiency, and governance; and social reforms.

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