World Bank strategy for Ethiopia? Here are a few salient points
By Ishac Diwan, WB Country Director
March 10, 2006
An article on your website dated March 2, 2006 - Financial
Strategy
for the World bank for Ethiopia 2006/7, has raised important questions
around the
question of how to support change in Ethiopia while ensuring that
citizens
aren't deprived of basic services. In the spirit of contributing to
the debate,
we would like to provide some key information about the proposed Bank
program
for Ethiopia and the motivations behind it. The following are some
salient
points:
- First, the World Bank is committed to supporting the people of
Ethiopia,
rather than any political party whether in power or in opposition. Our
overarching strategy and individual programs are designed to focus on
the
development needs of the poorest segments of Ethiopian society.
- The World Bank's operations in any country must adhere to the
legal
framework provided by the Articles of the Bank, which specifically
prohibit that
Bank programs should be designed with political objectives in mind.
This is a
difficult task to implement in practice since "as your article rightly
notes" the
development process almost always has political implications. To
minimize
politicization of Bank resources, country teams must first assess
whether there
is a clear need for external financing, along with the poverty
reduction impact
of these additional resources. Finally, the Bank must work to make sure
there
are sufficient safeguards to prevent political (or other) capture of
resources.
- In the case of our proposed project to protect basic services for
poor
households, the Bank has identified critical areas of need that require
additional financing in order to be able to improve the lives of the
poor. These
areas include primary and secondary education, primary healthcare
(especially
for malaria, immunizations, and maternal health), safe water supply and
sanitation, social welfare, and agricultural extension services that
are
provided by regional and local woreda level administrations. The
current
Government has committed to use Bank resources for these intended
purposes, and
the Bank will be monitoring the use of funds closely monitoring not
only the use
of World Bank project funds, but Government's own resources at the
sub-national
levels. Should the Bank identify misuse of funds, it will take remedial
action
in line with our legal options.
- An issue raised was that of whether the proposed Bank strategy
and
Protection of Basic Services Project might be postponed. With any
significant
delay, teachers' and nurses' salaries may go into arrears; children may
go to
school but may not learn anything in classes with too few teachers;
malaria
bednets will not be procured in sufficient quantities and the numbers
of
children exposed to malaria will remain very high; immunization of
young
children against the most basic of diseases will be severely curtailed;
thousands of women who demand contraceptives will not be able to access
them. It
is difficult for us to justify delaying funding when these are
predictably the
results.
- In the past three months, the Bank has consulted with civil
society
organizations, opposition party members, and community groups?both in
Ethiopia
and abroad. Although many participants in these sessions were highly
critical of
the current government, almost none took the position that the Bank
should halt
its support. Further details on the consultative process (including on
ICAS
consultations with donor partners) are available on the Bank?s external
website,
at www.worldbank.org/ethiopia. In addition, all members of the
Development
Assistance Group have indicated that they recognize the need to
continue to
support Ethiopia?its people?especially in terms of the provision of
critical
services for the poor, while changing aid modalities to enhance greater
accountability, transparency, and voice of the ordinary citizen.
Finally, a correction is warranted regarding the size of the proposed
project.
Your article suggests it is $2.2 billion, while what is currently
proposed is
$255 million over a period of two years. Please note that this amount
represents
a 45% reduction in planned Bank resources to Ethiopia relative to what
would
have been the potential envelope for direct budget support (which has
been
discontinued) and a malaria project over the same time period.
We would like to conclude by expressing appreciation that there is a
wide-ranging debate over both the political difficulties experienced by
Ethiopia
and the best ways for development partners to work in the country.
Hopefully,
development programs are improved by these exchanges and we hope they
will
continue through the Internet platforms and face-to-face gatherings.
Our only
objective, as we understand yours to be, is to help the poorest, most
vulnerable
people of Ethiopia to break out of the cycle of poverty.
Yours sincerely,
Ishac Diwan
Country Director, Ethiopia
The World Bank
ETHIOMEDIA.COM - ETHIOPIA'S PREMIER NEWS AND VIEWS WEBSITE
© COPYRIGHT 20001-2006ETHIOMEDIA.COM. EMAIL: webmaster@ethiomedia.com
An article on your website dated March 2, 2006 - Financial
Strategy
for the World bank for Ethiopia 2006/7, has raised important questions
around the
question of how to support change in Ethiopia while ensuring that
citizens
aren't deprived of basic services. In the spirit of contributing to
the debate,
we would like to provide some key information about the proposed Bank
program
for Ethiopia and the motivations behind it. The following are some
salient
points:
Finally, a correction is warranted regarding the size of the proposed
project.
Your article suggests it is $2.2 billion, while what is currently
proposed is
$255 million over a period of two years. Please note that this amount
represents
a 45% reduction in planned Bank resources to Ethiopia relative to what
would
have been the potential envelope for direct budget support (which has
been
discontinued) and a malaria project over the same time period.
We would like to conclude by expressing appreciation that there is a
wide-ranging debate over both the political difficulties experienced by
Ethiopia
and the best ways for development partners to work in the country.
Hopefully,
development programs are improved by these exchanges and we hope they
will
continue through the Internet platforms and face-to-face gatherings.
Our only
objective, as we understand yours to be, is to help the poorest, most
vulnerable
people of Ethiopia to break out of the cycle of poverty.
Yours sincerely,
Ishac Diwan
Country Director, Ethiopia
The World Bank
ETHIOMEDIA.COM - ETHIOPIA'S PREMIER NEWS AND VIEWS WEBSITE
© COPYRIGHT 20001-2006ETHIOMEDIA.COM. EMAIL: webmaster@ethiomedia.com
