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Country Partnership Framework

Pulling out all stops: World Bank in Nepal

Faris Hadad-Zervos's picture

Nepal

Few countries in recent history have experienced change on a scale as sweeping as Nepal – that too, in the span of a single generation. The journey is ongoing as Nepalis continue to confront and challenge the conventional wisdom about Nepali statehood and chart a path towards a more inclusive, equitable and modern nation-state.

The new federal structure also redefines the World Bank Group (WBG)’s engagement with Nepal. This week, as the WBG’s Board of Executive Directors endorsed a new five-year Country Partnership Framework (CPF), Nepal’s Finance Minister Yuba Raj Khatiwada attended a series of Nepal Day events at the WBG headquarters in Washington DC. There, he unfurled the new government’s vision and development priorities and discussed approaches to address Nepal’s financing and knowledge needs in the WBG’s upcoming programme of assistance.

Finance Minister Yuba Raj Khatiwada's Vision for Nepal's Future


The CPF is designed to balance support to Nepal’s transition to federalism with its quest for higher growth, sustained poverty reduction and inclusive development. To that end, our strategy and approach seeks to support the authorities and engage with development partners in three transformative engagement areas: (i) public institutions for economic management, service delivery and public investment; (ii) private sector-led jobs and growth; and (iii) inclusion for the poor, vulnerable, and marginalised groups, with greater resilience against climate change, natural disasters, and other exogenous shocks. These focus areas were informed by extensive consultations and surveys across the country’s seven states with over 200,000 citizens, government, civil society organisations, the private sector, media and development partners.

In many respects, Nepal is starting from a clean state. While Nepal did practise a limited version of decentralisation in the early 2000s, the scope of devolution proposed by the 2015 Constitution is unprecedented.  Meanwhile, reforms promise to rid the country of a legacy of exclusion based on geography, ethnicity and gender.

Over the last decade, Nepal experienced frequent government turnover and political fragmentation with a considerable toll on development.  The 2017 elections mark a significant turning point, in that they offer higher hopes for political stability and policy predictability that remained elusive during most of Nepal’s recent past. This is a considerable achievement.

Interview with World Bank Country Director for Nepal, Qimiao Fan


Nepal has achieved a remarkable reduction in poverty in the last three decades, but the agenda remains unfinished. While the national poverty estimates await updating starting next year, at last count, poverty fell from 46 per cent in 1996 to 15 per cent in 2011 as measured by the international extreme poverty line. However, most of the poverty reduction resulted from the massive outmigration of labour, and a record increase in private remittances. Moreover, a significant disparity remains in poverty incidence across the country.

Compared to the average 4.5 per cent of GDP growth over the last decade, Nepal needs to achieve faster growth to meet its coveted goal of attaining middle-income status by 2030. Nepal needs to grow in the order of at least 7 to 8 per cent and shift from remittance-led consumption to productive investment. The economy also remains exposed to exogenous shocks like earthquakes, floods and trade disruptions. These long-standing economic vulnerabilities will require far-reaching but carefully-calibrated reforms.

Nepal now faces the daunting task of adapting to a three-tier structure in the face of nascent and often-nonexistent institutions at the sub-national levels. Immediate challenges include the need to clarify the functions and accountabilities of the federal, state and local governments; deliver basic services and maintain infrastructure development; enable the private sector; and ensure strong and transparent governance during the early years of federalism. Meanwhile, if left unmet or unmanaged, heightened public expectations of federalism could rapidly degenerate from anticipation to disillusionment.
 
Short Take: Nepal Country Partnership Framework (FY2019-23)

Assessing the poverty footprint of World Bank projects for the Burkina Faso CPF

Johannes Hoogeveen's picture
Map 1: Spatial distribution of Burkina Faso's portfolio

With nearly half of the population (or approximately 8 million people) living in extreme poverty, Burkina Faso is poised to make inroads in the long and challenging journey to achieve the World Bank Group's overarching twin goals: ending extreme poverty in 2030 and boosting shared prosperity. Every fiscal year since 2015, the Bank has committed more than 300 million dollars of IDA resources in support of development projects in Burkina Faso.  The World Bank has also provided a set of timely analytical and advisory services to inform national development strategies and policies in the country. 

Why is the World Bank providing support to Côte d’Ivoire?

Pierre Laporte's picture



Of the total US$15.4 billion pledged by the international community at the end of the first day of the meeting of the Consultative Group on Côte d’Ivoire held on May 17, 2016 in Paris, the World Bank Group (IDA, IFC, MIGA) will commit the sum of US$5 billion (CFAF 2500 billion) to finance Côte d’Ivoire’s Second National Development Plan (NDP) covering the period 2016-2020.  This amount is double the sum allocated during the previous period (2012-2016), proof—if any were needed—that the World Bank is more than ever committed to helping Côte d’Ivoire achieve emerging country status. This new country partnership framework between the World Bank Group and Côte d’Ivoire is an important milestone.  

Maintaining momentum in Myanmar

Axel van Trotsenburg's picture

Myanmar is undergoing a historic transition. After decades of armed conflict and economic stagnation, the country is beginning to make important strides toward realizing its potential and the aspirations of its people.

Our engagement in Myanmar started more than 60 years ago when it became a member of the World Bank, soon after gaining independence from British rule.

Back in 1955, the Bank’s first economic report stated: “the lack of security remains a disrupting influence on the economic life of the country” while “the long term economic potentials are bright” on account of its moderate population growth and abundant natural resources. It also noted the importance of “encouraging private sector enterprise to improve the standard of living of the people”— these are topics that continue to resonate in today’s development discourse.

In the early 1950s, Myanmar’s GDP per-capita was comparable to that of Thailand, Korea, and Indonesia.  Like others in the region, Myanmar was coming out from colonial rule and a period of struggle. Sixty years on, Myanmar has a per capita GDP just above $1,100, less than one third the average for ASEAN countries and one of the lowest in East Asia.

The good news is that Myanmar has begun the catch up process. Major political and economic reforms since 2011 have increased civil liberties, reduced armed conflict, and removed constraints to trade and private enterprise that long held back the economy.