MARCH NEWSLETTER.Pub

AFRICA GROUP I CONSTITUENCY A Newsletter from the Office of the Executive Director In This Issue • Message from the Executive Director • Feature Story: World Bank Group Response to the Financial Cri- sis • Voice and Participa- tion - Update • Executive Director’s Visits to Constituency Countries in West and Southern Africa March No. 01/2009 • Executive Directors’ Group Travel to Libe- ria • Welcoming Partici- pants of the 2009 Voice Secondment Program • Approved Projects (January-March 2009) • Upcoming Meetings Toga Gayewea McIntosh Executive Director The World Bank Africa Group I Constituency Newslet- ter is published quarterly by the Office of the Executive Director for Africa Group I. Table of Contents Executive Director Toga Gayewea McIntosh PAGE Alternate Executive Director Hassan Ahmed Taha The Office of the Executive Director for Africa Group I Constituency acts as the resident representative for its member countries. The office protects the individual and collective interests of its member countries in World Message from the Executive Director……………. 1 Bank Group affairs. The Office has a chair on the Board of the World Bank Group (IBRD/IDA. IFC and MIGA). World Bank Group Response to the Financial It is one of the twenty-four chairs on the Board. Crisis……………………………………………….. 3 Executive Directors are responsible for the conduct of the general operations of the Bank and exercise all the Voice and Participation - Update.…………….......7 powers delegated to them by the Board of Governors under the Articles of Agreement. Executive Directors Executive Director’s Visits to Constituency consider and approve or reject IBRD loan and guarantee Countries in West and Southern Africa …...……...8 proposals, IFC investments, as well as IDA credits, grant and guarantee proposals made by the President. They Executive Directors’ Group Travel to Liberia...….13 also decide on polices that guide the Bank’s general operations. They are responsible for presenting to the Welcoming Participants of the 2009 Voice Board of Governors at the Annual Meetings, an audit of Secondment Program ……….……........................15 accounts, an administrative budget, and an annual report on the Bank’s operations and policies as well as other Approved Projects (January - March 2009).……..16 matters. In shaping Bank policy, the Board of Executive Directors takes into account the evolving perspectives of Upcoming Meetings………………………………..20 member countries on the role of the Bank Group as well as the Bank’s operational experience and policy. The Executive Directors have Board sub-committees that monitor Bank Group operations. The sub-committees are serviced by independent evaluation and audit entities. For Electronic or Bank Copies—see contact below: Telephone: (202) 458-2105 Facsimile: (202) 522-1549 Email: [email protected] Website: http://www.worldbank.org/eds14 ©2009 by Africa Group I Executive Director’s Office, The World Bank Message from the Executive Director Africa’s economies are today, facing challenge at this juncture remains - severe challenges as the global eco- how best it can support and address nomic crisis, coming so close at the the growing needs of its diverse clients heels of the food and fuel price crisis, in equitable manner, at this critical unleashes additional strains and uncer- point in time. The WBG has come up tainties for the future. The robust eco- with some new instruments and made nomic growth and macroeconomic sta- efforts to introduce more flexibility Mr. Toga Gayewea McIntosh bility recorded by countries over the into its existing financing instruments, Executive Director past decade are now at risk of being to assist its client countries cushion wiped away. As developed economies the effects of the global financial cri- strive to meet internal demands, there sis. In this edition, we highlight some is growing risk that the needs of the of these instruments and initiatives. poorest and least developed will take The message is clear: there is a strong the back seat. Sources of development need for deeper and more lasting solu- financing to Africa, are becoming more tions. Secondly, the international and more uncertain, and gradually dry- community and especially developed ing up. Thus, the Millennium Develop- partner countries must not leave the ment Goals target date of 2015 which poorest behind as rescue plans are be- already, will most likely not be ing put in place for the strongest and achieved by sub-Saharan Africa, is now bigger economies. more of a mirage, as the poorest people are pushed further into poverty by the No doubt, discussions at the IMF/WB global economic crisis. 2009 Spring Meetings will focus on the effects of the global financial crisis Numerous consultations are taking as well as measures on how to best to place on how best to support countries mitigate the negative impact on in handling the current situation. The economies world wide. What the dis- big question however, remains - is cussions holds for Africa, one of the enough being done to support the poor- most vulnerable of the Bank’s client est and most vulnerable, Africa, in the regions, remains to be seen. As the face of the enormous challenges it faces situation unfolds, the key lesson for – dwindling revenue from mineral and Africa is that, this is a wake up call… natural resources, commodities, indus- to diversify economies, vigorously tries, tourism, remittances, foreign in- pursue internal revenue generating vestment, etc. capacities and sources, pursue strong and prudent macro economic policies, For the World Bank Group (WBG), the put in place vital infrastructure, insti- 1 Message from the Executive Director Continued tutions and focus on resuscitating industries As part of its annual group travel to member and the value chain that would help lay the countries, a delegation of World Bank Execu- foundations for stronger economies and sus- tive Directors visited the West African coun- tained development. Most importantly, re- tries of Liberia, Benin and Togo, during the gional cooperation continues to be an impor- month of March, 2009. The visit to Liberia tant aspect for the continent. took place from March 13 – 17, 2009. High- lights of the Liberian experience is also in- In the light of the foregoing and the on-going cluded in this issue. reforms on Voice and Participation, in the World Bank Group, my team began consulta- A number of projects were approved for our tions with Governors and country representa- member countries during the first quarter of tives on how best we can pursue further, the 2009. As usual, highlights of these are also interests of member countries, in the World featured. Bank Group. In this regard, visits were made to The Gambia, Nigeria, Sierra Leone, South Africa, Botswana, Lesotho and Swaziland during the past quarter. A common message coming out of the consultations, was the need for increased financial and technical support from the Bank and development partners, to among others, focus on agricultural sector, infrastructure, health and social services, private sector support and investments, etc. I also took the opportunity of the occasion to visit some of the World Bank assisted projects, where we interacted with beneficiaries of the projects. The Bank field and country offices were not left out, with working ses- sions held with field staff. Highlights of the key messages and expectations are provided in this issue. 2 FEATURE STORY: World Bank Group Response to the Financial Crisis The following paragraphs provide a synopsis has made strategic moves in terms of stepping of initiatives that have been put in place by up its financial assistance to help its member the IDA/IBRD and the IFC in response to the countries mitigate the impact of the crisis. The economic crisis. Bank Group is leveraging its own resources with the financial support from a number of The Situation: public and private sources using a menu of options to match the needs of developing The current global economic crisis is severely countries with the interests and capacities of hitting developing countries. The degree to donors. The Group is also mobilizing a wide which the global crisis has spread across all range of technical assistance, capacity building countries is very disturbing. In particular, the and support services in an attempt to mini- low-income countries (LICs) that were ini- mize the impact of the financial crisis on its tially shielded from the direct impact of the member countries. Accordingly, each of the sudden squeeze in private capital flows, are WBG entities, i.e., IBRD, IDA, IFC, and now feeling the full impact, as the crisis MIGA have come up with new initiatives and spread to other channels. This is in addition facilities - some of which have already been to the fact that many LICs are still trying to endorsed by the respective Executive Boards find out a workable solution to the food crisis. during the last 3 months (i.e. January to There is a growing fear that the impact of the March 2009). financial crisis combined with the earlier food and energy crises could set back the global These initiatives focus on three thematic ar- fight against poverty, and jeopardize the pro- eas: (i) protect the most vulnerable against the gress made towards achievement of the fallout of the crisis; (ii) maintain long-term MDGs. infrastructure investment programs; and (iii) sustain the potential for private sector-led Just four months ago, the World Bank fore- economic growth and employment creation, casted growth for Africa for 2009 at 6.8 per- particularly through SMEs and microfinance. cent, and recently, it narrowed the forecast to The thematic areas are being addressed 3.5% with a dim prospect of a 2.5% growth for through three operational platforms – the next year. This means a zero growth in aver- Vulnerability Financing Facility (VFF), the age incomes for some of the poorest people in Infrastructure Recovery and Assets (INFRA) the world.

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