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Ian Porter: Seven Wonderful Years World Bank Country Director for South East Asia Retires

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Ian Porter: Seven Wonderful Years World Bank Country Director for South East Asia Retires 47045 Public Disclosure Authorized September-October 2008 Issue no 8 March - April 2008 Issue no 6 Ian Porter: Seven Wonderful Years World Bank Country Director for South East Asia Retires even years ago as the during his final visit as Director for region was emerging from Southeast Asia. H.E. Mr. Bouasone S the Asian financial crisis, Bouphavanh, the Prime Minister of Ian Porter became the World Laos thanked Ian for his Public Disclosure Authorized Bank Director for South East Asia. contribution to the development of Being optimistic by nature, he was Laos, and on behalf of the confident that the region would Government of Laos, Minister of see solid economic growth, Planning and Investment, H.E. Mr. especially in Laos. Ian strongly Soulivong Daravong awarded a believed that the Government’s Friendship Medal, which Ian policies to attract investment and accepted on behalf of the World stabilize the economy would lead Bank Group, in recognition of his the country in the right direction. contribution to the country. Seven years later as Ian retires During this final round of meetings from the World Bank, he explains with the government, Ian that the results have been even highlighted three areas that better than he expected. (for require continued focus and more see the interview with Ian emphasis to take advantage of the on page 2-3). ongoing reform agenda: Public Disclosure Authorized At a recent farewell party, hosted Farewell meeting with the Prime Minister of Lao PDR, 1) Natural Resources by the World Bank, Country Manager for Laos, Patchamuthu H.E. Mr. Bouasone Bouphavanh Management The country's Illangovan, highlighted some of growth will continue to be fulfilled the major achievements that occurred under Poverty Reduction Support Operation through exploitation of natural resources. Ian’s leadership. Perhaps the most important (PRSO). Four years later the PRSO has This needs to be done in a sustainable way. has been the success of the Nam Theun 2 become an effective means of supporting the Both the NT2 Hydropower Project and Lane (NT2) process. In the early years of this Government’s reform effort and now includes Xang Minerals mining project in Sepon have decade, there were many skeptics who Australia, the European Union, and Japan as shown that Laos can be a world leader in this “Ian thought concerns related to environment, partners. According to Illangovan, respect. Future projects should continue to fought hard to win the approval of PRSO social, governance/transparency, and public take advantage of such lessons, and ensure from Bank senior management at a time financial management were too big a that quality investments are attracted, when not everyone was convinced that the challenge to be overcome. Some believed benefits are equally shared among all Lao Government was ready for such a program that the NT2 project was too large for a people including future generations, and driven approach to reform. The rest is small country like Laos. In short, there were resources and social and cultural practices history, and we are now in the fifth year of many doubts about whether the project are protected. >> PRSO and a long list of reforms have been would go ahead. Under Ian’s leadership, Public Disclosure Authorized accomplished.” however, the World Bank was able to design interventions to ensure that all In addition to these, Ian’s vision for IN THIS ISSUE stakeholders’ concerns were addressed. getting the World Bank more involved Now, we are just over a year away from in the Greater Mekong Sub-region has seeing NT2 begin its operations and start led to major activities, such as a ♦ Ian Porter: Seven Wonderful Years generating power and revenues for the regional power transmission project ♦ Interview with Karin Finkelston, country, while benefiting the impacted and initiatives in water, trade, labor Director of East Asia Pacific, people. migration, environment and climate International Finance Corporation change. Another major achievement has been ♦ James Bond Advises Mekong to engage the Government in a major The Lao government recognized Ian’s Countries to Develop Hydropower reform effort through the use of the contribution to the development of Laos Sustainably Page 2 http: //www.worldbank.org/lao September-October 2008 • recognizing that IDA resources are lim- Q: Did you expect this rapid growth? ited, the World Bank should consider A: Whenever I met the Minister of Finance providing other instruments such as IBRD (International Bank for Reconstruc- throughout the years, I told him I was very tion and Development) credits to Laos; optimistic about the Lao economy. However, like most of us in the World Bank, as much • the World Bank should look into increas- as we were confident of the potential of the ing its involvement in financial ser- country, we have all been pleasantly sur- vices to encourage private sector prised with the level and consistency of the development, including providing growth. financing to small and medium en- Q: Other than NT2, what have been the terprises; major achievements of the World Bank At his meeting with the Minister of Planning during the last 7 years? and Investment, major issues discussed included developing a sound legal framework A: Other than NT2, important challenges we through the preparation of a good practice have taken on include supporting the gov- Investment Law; government revenue gen- ernment to strengthen its overall financial On behalf of the World Bank Group, Ian eration through effective taxation, royalties management and public expenditure man- receives Friendship Medal from Minister of and fees; benefit sharing (community, pro- agement, supporting the government in the Planning and Investment, H.E. Mr. vincial, national); managing major infrastruc- area of trade facilitation and with accession Soulivong Daravong. ture projects (especially for hydropower); to WTO. At the sector level, we have worked managing environmental and social concerns with the government to develop its first sec- building on the experience of NT2 and the tor-wide transport operation. In social sec- “Ian has put significant effort Sepon mining project; and governance and tors, we have programs to improve the qual- into aid coordination between contract management. ity of education and health services and to the World Bank and the Lao Gov- ensure that people have access to those ernment to mobilize soft loans services. And, at the moment, we are carry- Interview with Ian C. Porter and funding grants for the imple- ing out important analytical work on the mentation of 28 projects in vari- issues affecting the development of upland Before his farewell party, Ian shared some of ous sectors worth more than villages - to increase income and livelihood in his impressions and experience working in US$350 million. On behalf of the remote areas, and conserve the environment Laos. Lao Government, we express our for future generations. sincere gratitude to Ian for this Q: Can you share with us your perspec- great contribution to Lao socio- tives on Laos seven years ago and economic development and the now? fight against poverty in his 7 years in charge of the World A: In the last 7 years there have been major Bank’s South East Asia section.” changes in Laos, even bigger than I could H.E. Mr. Soulivong Daravong, have anticipated. A major thing that comes Minister of Planning and Invest- to mind is the rapid economic growth reach- ment. ing a consistent level of 6-7% per year over the last 7 years. This growth has had a sig- 2) Financial Sector - The need for nificant impact on reducing poverty and access to finance is huge, especially in rural improving social indicators. It’s not just the areas. As Laos contemplates more reforms in numbers either. I can see the changes with this sector, emphasis should be placed on my own eyes when visiting Vientiane and developing a more modern and well regu- rural areas where we can see improvements lated sector that offers a range of products in infrastructure, significant new housing and Minister of Finance, H.E. Mr. Somdy and services that can contribute to the ex- construction and a general improvement in Douangdy speaks at Ian’s farewell pansion of domestic and foreign private the lives of the Lao people. reception sector, and help rural households. Q: What have been the most significant 3) Public Administration/Civil Q: How about the challenges of work- changes in Laos since 2001? ing in Laos in general? Service - Over the past four years, sev- eral partners have contributed to capacity A: The strong economic growth has been A: In the last few years, the World Bank development among institutions, organiza- stimulated by very important economic re- and the Government have developed a tions and individuals. Laos needs to move to forms. The government introduced processes stronger partnership – a lot more trust, con- the next stage of building a more modern such as the Lao Business Forum to reach out fidence and respect on both sides. Because and efficient public administration, through to the private sector, and has developed a of this strong partnership the government is more targeted reforms. better business enabling environment more direct with us and at the same time we The Prime Minister indicated his sup- through reforms such as the Enterprise Law are also more frank with the government port for the World Bank’s continuing and the Law on Commercial Banks. Also through our interaction and because of the efforts in these areas and agreed with recognizing that Laos is in the middle of a good dialogue developed over the last few all three points raised while supporting very rapidly growing and dynamic region, the years through PRSO. The big challenge on further cooperation with concerned government has made an extra effort to the government side is the need for greater ministries.
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