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Country Partnership Framework Document of The World Bank Group FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No. 126154-RO INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT AND INTERNATIONAL FINANCE CORPORATION AND MULTILATERAL INVESTMENT GUARANTEE AGENCY COUNTRY PARTNERSHIP FRAMEWORK Public Disclosure Authorized FOR ROMANIA FOR THE PERIOD FY19-FY23 May 21, 2018 Europe: Central, South & Baltics Country Management Unit Europe and Central Asia Public Disclosure Authorized The International Finance Corporation Europe and Central Asia The Multilateral Investment Guarantee Agency Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank Group authorization. The date of the last Country Partnership Strategy (CPS) was April 28, 2014, Report No. 84830- RO and the date of the last Performance and Learning Review of the CPS was November 3, 2016, Report No.108785-RO. CURRENCY EQUIVALENTS (Exchange Rate Effective as of May 10, 2018) Currency Unit = New Romanian Lei, (RON) RON 3.91 = US$ 1.00 US$ 1.42 = SDR 1.00 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS ABP Annual Borrowing Plan ESA European System of National and ALDE Liberal-Democratic Alliance Regional Accounts ALMP Active Labor Market Program ESIF European Structural and Investment AMTB Bucharest Metropolitan Transport Authority Funds ANCPI National Agency of Cadastre and Property Registration ESL Early School Leaving ANI National Integrity Agency EU European Union ANRE Romanian Energy Regulatory Authority EUR EURO APA Alternate Procurement Arrangements FSB Fiscal-Budgetary Strategy AROPE At Risk of Poverty or Social Exclusion FDI Foreign Direct Investment ASA Analytical Services and Advisory FEG- Fiscal Effectiveness and Growth ASF Financial Supervisory Authority DPL Development Policy Loan B40 Bottom 40 Percent of the income distribution FSAP Financial Sector Assessment Program CAT DDO Catastrophe Deferred Drawdown Option FY Fiscal Year CDSACP County Directorates of Social Assistance and Child GDP Gross Domestic Product Protection GEF Global Environment Facility CEM Country Economic Memorandum GNI Gross National Income CEQ Commitment to Equity GoR Government of Romania CFR SA National Railway Company GSG General Secretariat of the Government CLLD Community Led Local Development GTMP General Transport Master Plan CLR Completion and Learning Review HR Human Resources COA Court of Accounts HRM Human Resources Management COG Center of Government HSR Human Resources Strategy CPF Country Partnership Framework IBRD International Bank for Reconstruction CPS Country Partnership Strategy and Development CVM Cooperation and Verification Mechanism ICAM Institutional Change Assessment Method DLI Disbursement Linked Indicators ICT Information and Communications DNA National Anti-Corruption Directorate Technology DPL Development Policy Loan IDA International Development Association DPO Development Policy Operation IDF Institutional Development Fund DRM Disaster Risk Management IEG Independent Evaluation Group DU Delivery Unit IFC International Finance Corporation EBRD European Bank for Reconstruction and Development IFI International Financial Institution EC European Commission IMF International Monetary Fund ECA Europe and Central Asia INPCP Integrated Nutrient Pollution Control EIB European Investment Bank Project IPF Investment Project Financing PMU Project Management Unit ISP Institutional Strategic Plan PNDL National Local Development Program IT Information Technology POCU Human Capital Operational Program IUDS Integrated Urban Development Strategy PPP Public-Private Partnership JRP Judicial Reform Project PPS Power Purchasing Standards LLL Lifelong Learning PPSD Project Procurement Strategy for M&E Monitoring and Evaluation Development MA-IB Managing Authorities-Intermediate Bodies PSD Social Democratic Party MARD Ministry of Agriculture and Rural Development RAMP Revenue Administration Modernization MDRPA Ministry of Regional Development and Public Project Administration RAS Reimbursable Advisory Services MIGA Multilateral Investment Guarantee Agency RCC Romanian Competition Council MIS Ministry of Information Society RCoA Romanian Court of Accounts MOESR Ministry of Education and Scientific Research REF Roma Education Fund MoH Ministry of Health RIA Regulatory Impact Assessment MoJ Ministry of Justice RMS Revenue Management System MoLFSPE Ministry of Labor, Family, Social Protection and the RNCM Romanian National Company of Elderly NR SA Motorways and National Roads MoLSJ Ministry of Labor and Social Justice ROF Regulations for Organization and MoNE Ministry of National Education Functioning MoPF Ministry of Public Finance RON Romanian Leu MoU Memorandum of Understanding ROP Regional Operational Program MRA Miscellaneous Reimbursable Arrangements ROCS Report on the Observance of Standards MSME Micro, Small and Medium Enterprises and Codes MTI Ministry of Transport and Infrastructure ROSE Romania Secondary Education Project NACS National Agency for Civil Servants RSB Roma Sounding Board NAFA National Agency for Fiscal Administration SA Social Assessment NAPCRA National Authority for Protection of Children’s Rights SASM Social Assistance System Modernization and Adoptions Project NAPSI National Agency for Payments and Social Inspection SCD Systematic Country Diagnostic NEETD Not in Education, Employment, Training or Disabled SME Small- and Medium-scale Enterprise NGO Non-Governmental Organization SOE State-Owned Enterprise NIS National Institute for Statistics TA Technical Assistance NPL Non-Performing Loan TEN-T Trans-European Transport Network NUTS2 Nomenclature of Territorial Units for Statistics TF Trust Fund OECD Organization for Economic Co-operation and TRACE Tool for Rapid Assessment of City Energy Development UNCIT United Nations System in The Field of PFR Program for Results RAL International Trade Law PHRD Policy and Human Resources Development Fund UNPD United Nations Procurement Division PIM Public Investment Management USD US Dollar PISA Program for International Student Assessment VAT Value Added Tax PIU Project Implementation Unit VMI Minimum Insertion Income Program PLR Performance and Learning Review WBG World Bank Group IBRD IFC MIGA Vice President: Cyril Muller Georgina Baker Keiko Honda Director: Arup Banerji Wiebke Schloemer Merli Margaret Baroudi Task Team Leader: Tatiana Proskuryakova Thomas Lubeck/ Gianfilippo Carboni Aimilios Chatzinikolaou Gero Verheyen FY19-23 COUNTRY PARTNERSHIP FRAMEWORK FOR ROMANIA TABLE OF CONTENTS EXECUTIVE SUMMARY ............................................................................................................................................ I I. INTRODUCTION .................................................................................................................................................. 1 II. COUNTRY CONTEXT AND DEVELOPMENT AGENDA ............................................................................................ 1 COUNTRY CONTEXT ........................................................................................................................................................ 1 RECENT ECONOMIC DEVELOPMENTS AND PROSPECTS ........................................................................................................... 2 POVERTY PROFILE .......................................................................................................................................................... 6 INSTITUTIONAL ASSESSMENT AND KEY DEVELOPMENT CHALLENGES IDENTIFIED BY THE SCD ........................................................ 9 REFORM PRIORITIES FOR INCLUSIVE GROWTH ................................................................................................................... 10 III. WORLD BANK GROUP PARTNERSHIP FRAMEWORK ........................................................................................ 12 A. GOVERNMENT PROGRAM AND MEDIUM-TERM STRATEGY ............................................................................. 12 B. PROPOSED WBG COUNTRY PARTNERSHIP FRAMEWORK................................................................................. 13 LESSONS FROM FY14-18 CPS COMPLETION REPORT ......................................................................................................... 13 LESSONS FROM PUBLIC CONSULTATIONS .......................................................................................................................... 14 OVERVIEW OF WORLD BANK GROUP STRATEGY ................................................................................................................ 14 FOCUS AREAS AND OBJECTIVES SUPPORTED BY THE WBG PROGRAM .................................................................................... 18 FOCUS AREA I: ENSURE EQUAL OPPORTUNITIES FOR ALL ..................................................................................................... 18 FOCUS AREA II: CATALYZE PRIVATE SECTOR GROWTH AND COMPETITIVENESS......................................................................... 21 FOCUS AREA III: BUILD RESILIENCE TO SHOCKS.................................................................................................................. 25 C. IMPLEMENTING THE FY19-23 COUNTRY PARTNERSHIP FRAMEWORK ............................................................. 26 MANAGING PROGRAM IMPLEMENTATION .......................................................................................................................
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