South Asia Regional Strategy 2011

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    South

    Asia

    rans orm ngt e

    ace

    o

    g o a

    poverty

    t roug

    strong,inclusiveandsustainablegrowth

    1DRAFT

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    I. REGIONAL OUTLOOK

    2DRAFT

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    ADYNAMIC RAPIDLY GROWING REGION

    WITH BIG REDUCTIONS IN POVERTY IN LAST TWO DECADESAverageGDPpercapitaandPovertyRates

    2000

    2500

    SRILANKA

    30

    35

    1200

    1400

    1600

    )

    1500

    BHUTAN

    SAR20

    25

    800

    1000

    1.25a

    day(PPP)(

    ercap

    ita(US$)

    Source:IMF

    1000

    US

    BANGLADESH

    PAKISTAN

    LOWMIDDLEINCOMETHRESHOLD(US$ 996),2009GNI

    percapita

    10

    15

    400

    600

    Povertygapat$

    RealGDPp

    500

    NEPALAFGHANISTAN

    0

    5

    0

    200

    0s

    0s

    0s

    0s

    0s

    0s

    0s

    0s

    0s

    0s

    0s

    0s

    0s

    0s

    0s

    3

    0

    1980 1990 2000 2010

    19

    19

    20

    19

    19

    20

    19

    19

    20

    19

    19

    20

    19

    19

    20

    Ban ladesh India Ne al Pakistan SriLanka

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    BUT STILL HOME TO MORE THAN BILLION POOR PEOPLE

    THUS POTENTIAL TO CHANGE THE FACE OF GLOBAL POVERTY

    SARs turn to contribute

    100

    1990>2005 2005>2020

    Changein

    number

    of

    poor

    people

    100

    0

    ple

    Source:IMF 300

    200

    illionsofPoorPeo

    500

    400

    M

    4

    600

    Global EastAsia SouthAsia

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    MDGS IN SAROntrackinGenderParityinPrimaryand Nutrition

    PROGRESS CHALLENGES

    SecondarySchoolingin6countries.

    IncreaseinSAR'sNetEnrollmentRatesto85%.

    Ontracktodecrease childmortalityby66%in

    Bangladesh,NepalandMaldives.

    MaternalMortality

    FemaleLaborForceParticipation

    SOME PROGRESS IN HUMAN DEVELOPMENT,BUT SERIOUS CHALLENGES IN NUTRITION MATERNAL MOR

    Progress

    in

    MDGs:

    Human

    DevelopmentProportionofcountriesbyprogressassessment

    Seriously Off Track Off Track On Track Achieved

    Notachievedby2040 Achievedby2040 Achievedby201550

    Malnutritionprevalence,

    weightforage

    LaborForce

    ParticipationRate:

    Female

    FEMALE LABOR FORCE PARTICIPATION100%

    LKA

    MDV

    BGN

    BTN

    LKA

    BGN

    BTN

    MDV

    LKA

    MDV

    BGNNPL

    LKA

    BTN 35

    40

    45

    r5 50

    60

    es15+

    50% INDIND

    NPL NPLBTN

    IND

    BGD

    IND20

    25

    30

    %ofchildrenund

    30

    40

    alepopulationag

    BTN

    NPL

    PAK

    AFG

    MDV

    IND

    AFG

    PAK

    PAKLKA MDVNPL

    PAK

    5

    10

    15

    10

    20

    %offe

    0%

    EducationCompletion

    Gender(primary)

    Gender(secondary)

    Childmortality

    Birthsattended

    AFGEAP SSA SAR

    2000 12.4 28.3 43.0

    2008 11.9 25.2 41.0

    0EAP SSA SAR

    2000 64.9 59.1 34.2

    2008 62.9 60.5 35.2

    0

    Source: SASHDbasedonUNMDGdata

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    LARGE INVESTMENT NEEDS IN INFRASTRUCTURE

    120

    140

    160

    180

    EAP

    B Re ion

    40

    60

    80

    100 ECA

    LAC

    MNA

    SAR

    0

    20

    TelecomAccess(per100people)

    (2008)

    ElectricityAccess(%ofpop.)

    (2010)

    %AccesstoImprovedSanitation

    (2008)

    %AccesstoImproved

    Water(2008)

    SSA

    ComparisonofAsianInfrastructureQualitywithWorld QualityofInfrastructureIndex 2008

    Overall

    InfrastructureRoad Railroad AirTransport Electricity Supply

    WorldAverage 3.8 3.8 3.0 4.7 4.6

    G7 CountriesAverage 5.7 5.7 5.4 5.8 6.4

    AsiaAverage 3.8 3.7 3.6 4.6 4.1

    SouthAsiaAverage 2.9 3.1 2.8 4.2 2.8

    Bangladesh 2.2 2.8 2.3 3.4 1.9

    6

    India 2.9 2.9 4.4 4.7 3.2

    Nepal 1.9 1.9 1.3 3.5 1.7

    Pakistan 3.1 3.5 3.0 4.2 2.5

    SOURCE:WorldEconomicForum(2008)

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    1

    MILLION PEOPLE EXPECTED TO JOIN THE LABOR FORCE

    NEED TO CREATE QUALITY JOBS:

    EACH MONTH FOR THE NEXT TWO DECADES

    PopulationPyramidinSouthAsia

    1,000

    1,200

    2010&2Scenariosfor2030

    7074

    8084

    9094

    100+

    2000

    MalesFemales

    Age

    600

    800

    04

    1014.

    2024

    3034

    4044

    5054

    6064

    200

    400

    Population(Million)

    100+

    2050Age

    0

    2010 2030 Scenario1 2030 Scenario2

    Population Po ulation Increase3034

    4044

    5054

    6064

    7074

    808490

    94 Males Females

    7

    Source: U.S. Census Bureau Population Projections, 2010.

    Increase andChangesinLabor

    ForceParticipation

    Rates

    100 80 60 40 20 0 20 40 60 80 100

    04

    1014.

    2024

    Population (Million)

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    AND MANY OF THESE PEOPLE WILL LIVE IN URBAN AREAS80 PercentageofPopulationResidinginUrbanLocations

    60

    70Afghanistan

    Bangladesh

    Bhutan

    India

    50

    Maldives

    Nepal

    Pakistan

    SriLanka

    30

    10

    20

    DRAFT 80

    1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050

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    SARistheLeastIntegratedRegionintheWorld

    Gainsfromtradeingoodsandservices

    Gainsfromtradeinelectricity

    Regionaltradeislessthan2percentofGDP

    in

    South

    Asia

    compared

    with

    40percentforEastAsia.Less

    than

    1

    percent

    of

    Afghanistan

    andNepals hydropowercapacityofover100GWisactuallyused

    .

    SignificantPotential

    Gains

    from

    Potentialtoreduce Potentialtoreduce

    poverty and inequalityLagging,landlocked/border regions

    arehometoanestimated50 ercent

    vulnerabilityto

    natural

    disasters

    CrossbordercooperationonwaterbetweenIndia,Bangladesh,andNepal

    DRAFT 9

    of SouthAsiaspoor.Greaterconnectivityandintegratingmarketsbeststrategyfor

    growthandequality.

    offerstheonlylongtermsolutiontofloodcontrolandwatershortagesinBihar,

    UPand

    Bangladesh

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    ,

    ,

    CONFLICT,INSURGENCIES,AND CIVIL STRIFE ARE LARGEST OF ALL REGIONS

    0.5

    0.6

    0.3

    0.4

    onflic

    tin2000

    08

    0.2

    country

    yearsinc

    0

    0.1

    EastAsia ECA LAC MENA SouthAsia SSA

    Shareof

    10

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    NATURAL DISASTERS AND POTENTIAL CLIMATE RISKS

    Sealevel

    riseN/A N/A N/A

    Glacier

    retreatN/A N/A

    increase

    Frequent

    floods

    Frequent

    droughts (someareas)

    11

    Likely: Source:WorldBank.2009SouthAsia:SharedViewsonDevelopmentandClimateChange

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    . OST

    INANCIAL RISISDEVELOPMENT CHALLENGES

    12DRAFT

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    BETTER THAN MOST REGIONS

    9

    10

    grow y coun ry

    10

    12

    grow y eg on

    EASTASIA&

    PACIFICSAR

    6

    7

    8

    ercen

    t)

    SRI LANKA

    4

    6

    8

    ercen

    t)

    SSA

    MENA

    4

    5

    Yearon

    Year(p

    BANGLADESH

    NEPAL0

    2

    YearonYear(p

    LAC

    1

    2

    3

    SOURCE:GEP

    PAKISTAN

    6

    4

    2

    ECA

    SOURCE:GEP

    13

    0

    2008 2009 2010e 2011f 2012f

    8

    2008 2009 2010e 2011f 2012f

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    BUT SAR

    SUFFERED THE WORST TERMS OF TRADE DETERIORATIONDURING PREVIOUS FOOD AND FUEL CRISIS

    TermsofTrade

    15

    20

    25 ECA EAP LAC MENA SSA SAR

    0

    5

    10

    rcen

    tageChang

    15

    10

    5

    AnnualP

    20

    2005 2006 2007 2008 2009 2010

    14

    WITH GLOBAL FOOD AND FUEL PRICES RISING,

    SAR

    WILL BE HIT DISPROPORTIONALLY

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    INFLATION IS ALREADY ON THE RISE,AND

    COUNTRIES HAVE LIMITED FISCAL SPACE

    16InflationinSARremainshigh ....andPublicFinancesareweak

    12

    14

    change

    DECPG,CEIC

    food

    prices

    40

    45

    50Fiscaldeficit

    Revenue

    SOURCE:EIU

    8

    10

    annualpercentage

    SAR

    30

    35

    fGD

    P,

    (2010)

    6

    asonallyadjusted,

    ECA

    LAC

    MENA

    SSA15

    20

    25 %

    2

    MedianCPI,se

    EAP

    WORLD

    5

    10

    15DRAFT

    2

    0

    Jan09 Mar09 May09 Jul09 Sep09 Nov09 Jan10 Mar10 May10 Jul10 Sep10

    0

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    . CHALLENGES

    16DRAFT

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    ALIGNING PRIORITIES TO DELIVERY STRATEGY

    CreateopportunitiesLaborforcewilldouble

    Promoteprivatesectoras growthdriver

    Improvebusinessenvironment

    Investinhighimpactinfrastructure,includinginurbanareas

    SAR REALITIESWBGPRIORITIES SARSTRATEGY

    oremp oymen

    andgrowthby2050 Investinskillsdevelopment,withafocusongenderequality

    Increaseagriculturalproductivity

    Bettertargetedsocialprotectionandsafetynets

    vulnerableHometobillionpoor

    uppor agg ngreg ons

    Focusonfemalenutrition,education,MDGs

    Strengtheninstitutions

    for

    economic

    management

    and

    Strengthengovernance

    ,

    Weakservicedelivery,

    Weakgovernance

    Improveinstitutionsforpublicaccountabilityandservice

    delivery

    Addressenvironmentalhealthandpollution,andimprove

    mana ement of natural resources

    Promoteglobal

    and

    collectiveaction

    ,

    globalchallenges

    like

    climatechange

    havebigimpactsinSAR

    Reduce

    vulnerability

    to

    climate

    change

    and

    support

    adaptation

    andmitigationefforts

    Strengthenregionalcooperationintrade,water,

    electricity,transport

    DRAFT 17

    Manageriskand

    preparefor

    crises

    Foo secur tyconcerns,

    limitedfiscalspace,

    proclivity

    for

    natural

    disastersandconflict

    Adviseonbuildingfiscalspaceandstrengtheningsafetynets

    tofaceshocks

    Riskappraisalandmitigationstrategiesfornaturaldisasters,

    shocksfrom

    the

    impact

    of

    climate

    change

    and

    from

    civil

    strifeandinsurgencies

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    SELECTIVITY AND TRADEOFFS IN DELIVERY STRATEGYSELECTIVITY AND TRADEOFFS IN DELIVERY STRATEGY

    Mosttradeoffsdecidedatthecountrylevelgiven:

    Strongclientdemandandshiftingpriorities

    ,

    Opportunisticresponsetodemandforprojectswithpotentialtointegrate

    marketsin

    the

    region

    More Leveragegreaterdevelopmentimpact,by

    usingprogrammatic

    approach

    Less Insectors whereweakfiduciaryenvironment

    carrieslarge

    risks

    to

    the

    Bank

    sectorprojects Regionaltransformativeprojects Publicprivatepartnershipsforinfrastructure Innovativeresultsbasedprojectsfocusedon

    ,comparativeadvantage

    TransactionintensiveProjects Projectsthatfocusoninputs Inareaswherelackofreformsmakes

    Strategiesinallcountriesfocuson:Strategiesinallcountriesfocuson:

    18

    ImprovingSkills GovernanceandInstitutions Inclusion GenderEquality

    PromotingRegionalIntegration EnvironmentalSustainability DisasterManagement

    ImprovingSkills GovernanceandInstitutions Inclusion GenderEquality

    PromotingRegionalIntegration EnvironmentalSustainability DisasterManagement

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    FROM GENERAL PRINCIPLES TO TRADEOFFS ON THE GROUND

    AfghanistanCoreprogramsinNSP,ruralaccess,irrigation,

    basichealth,educationandcapacitybuilding

    Largeinfrastructureprojects

    (beingdonebyADB)

    e/Fragile

    NepalRegionaltransformativeprojectsinpower,

    tradeandtransport,climatechangeadaptation

    programs,nutrition

    and

    skills

    development.

    Educationandhealth,PPPforinfrastructure, Roadandrailwaysowingtofiduciaryand

    PSDtopics(takenupbyIFC),fastdisbursing

    DPLtype

    budget

    support,

    and

    large

    AAA.

    LowInco

    MsaPakistan

    renewableenergy

    Performancebasedfinancingineducationand

    socialsafety,energy,revenuemobilization,

    agriculturalproductivity

    Transportandminingowingtofiduciaryrisks

    implementationrisks

    L

    owIncom

    Bhutan Urbandevelopment,ruralaccess,andPSD

    Transformativeprojects,typicallylarge;

    InvestmentlendingforHDreflectingsuccess

    inestablishingeducationinfrastructureand

    levelingenrolmentrates

    eIn a

    Maldives

    ,

    development

    challenges

    and

    projects

    with

    high

    leveragepotential

    Crisisresponsebudgetsupportoperations,pensionsproject,leveragingtrustfundsforworkonclimatechange,AAAonpublicsectoremployment

    and wa es

    Smallinvestmentprojectswithhigh

    transactioncosts

    atthe

    state

    level

    MiddleIncom

    DRAFT 19

    SriLanka

    Healthandsecondaryandtertiaryeducationwith

    privatesectorparticipation,regionalhighwaysand

    Colomboarea

    urban

    development

    Agriculture,ruraldevelopment,energyand

    waterother

    than

    for

    urban

    development

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    WITH SPECIAL EMPHASIS ON: GENDER EQUALITYSpotlightonResultsRecentAchievements

    GenderSpecificProjects

    India LivelihoodsProjectsbenefited13millionwomen

    fromabout90,000villagesthroughSelfHelpGroups

    inpastdecade

    Education

    InBangladesh,girlsenrollmentinsecondaryschoolsjumpedfrom1.1to3.9m.

    InPunjab,Pakistan,girlsprimaryschoolenrollmenthasincreasedfrom43to59

    percent,from175,000to280,000.

    Initiative(NARI)willincreasepoorwomensaccessto

    paidwork

    MainstreamingGenderinProjects

    Nepal:GenderEqualityandSocialInclusion(GESI)

    InAfghanistan,girlsenrollment doubledtomorethan2.5million.

    Health InAfghanistan,morethan5,000womenhealthworkershavebeentrainedto

    increasechildhoodvaccination.Theproportionofhealthfacilitieswithfemalestaff

    frameworktomainstreamgenderinprojects(e.g.,

    EnhancedVocationalandTraining(EVENT)and Rani

    JamaraKulariyaIrrigationProject).

    Pakistan,

    Afghanistan,

    and

    India:

    Gender mainstreamedinprojectsonruralwater

    . .

    WaterandSanitation

    InMaharashtraIndia,2millionwomenwithaccesstosanitationfacilities.Also,

    womensavemorethan2hoursadayonaveragefromhavingaccesstoclean

    drinkingwater.

    supply,CDD,NRM,andrurallivelihoods.

    UsedGAPfundingtoengenderprojectactivities in

    FY0910insuburbantransport,adaptationtoclimate

    change,employment,healthandeducation.

    LaborMarketsandPolitical/EconomicEmpowerment

    InAndhraPradesh India,

    4,000members ofSelfHelpGroupswereelectedtolocalgovernmentatthe

    Carriedout

    strategic

    AAA

    on

    gender

    (country

    gender

    assessmentsorgendersensitivepovertyassessments

    in5countries)

    Supportingregionalinitiativetounderstandmenand

    village

    and

    higher

    levels

    of

    government;

    19%ofmembersofWaterUsersAssociationarewomen.

    49%ofmembersofForestProtectionCommitteesarewomen.

    20DRAFT

    womens attitudestowardsgenderequality

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    WITH SPECIAL EMPHASIS ON: FRAGILITY AND CONFLICTWiththeglobalfocusonAFPK,SARisattheforefrontoffindingpracticalsolutionstothe

    SARsApproachtoFragilityandConflictWDR2011Recommendations

    challengesof

    conflict

    and

    fragility.

    Much

    of

    the

    new

    WDR

    2011

    framework

    is

    already

    in

    place.

    alargeraidarchitecture

    Balancequickwinswithlongerterm

    SectorSWAPs(Nepal)akeyaspectofSARsbusinessmodel.

    WorldclassCDDprograms(NSPinAFandPPAFinPK)bringquickbenefitsto

    communities,whilepublicfinancialmanagement,revenuemobilization,

    Integratesecurity,justiceandjobsinto

    developmentaction

    andpublicadministrationreformprojectsstrengthenkeyinstitutions.

    Countryprogramsincluderurallivelihoodssupportand

    justicesector

    reform

    as

    part

    of

    development

    agenda.

    Balancefiduciaryriskagainst

    theriskofinaction/slowaction

    Useofinnovativefiduciarytoolslikemonitoringagentfor

    allprocurementsandeligibleexpenditures.

    Adjustprocesses,

    skills

    mix

    and

    incentives

    tofragileandconflictstateschallengesSuccess

    in

    building

    national

    programs

    in

    AF

    required

    increase

    in

    skilled,

    incountrystaff. NowstaffingupinPakistan.

    Af hanistan Pakistan andNe alcountfor25%offieldstaffwithH com ensationin35fra ilecountries

    21DRAFT

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    WITH SPECIAL EMPHASIS ON: CLIMATE CHANGE

    po g on esu sg g s o ss s ance

    Focusonadaptation

    Bangladesh:MDTFforclimatechangeresilience

    ($110m)andPilotProgramforClimateResilience

    21CarbonOffsetoperationsinBangladesh,India,Nepaland

    Pakistan,withEmissionReductionPurchaseAgreements(ERPA)

    (PPCR) ($110m)fromClimateInvestmentFund(CIF)

    Nepal:Ongoing

    preparation

    for

    Pilot

    Program

    for

    ClimateResilience(PPCR)

    Ban ladesh: Pro ects to address emer enc needs

    signed(ortobesignedby2012)forthetotalgreenhousegas

    (GHG)

    reduction

    of

    51

    million

    tons

    JointStudyonClimateRisksandAdaptation inAsianCoastal

    andpreventdamagefromnaturaldisasters(Rivers

    InformationandConservation,NationalCoastal

    EmbankmentImprovement)

    Focusonmitigation

    Megacities (ADB,JICA,WB). Analysissuchasfloodproneareas

    inthefuturearegiventocitiesfortheirurbanplanning

    Bank contributedconsensusbuildingprocessofIndiasnewLaw

    MaldivesandNepal:Programforscalingup

    renewableenergy(CIFSREP)

    India:LowcarbongrowthstudytohelpIndiamove

    towards clean and lowcarbon emittin technolo ies

    forProtectionandManagementofCoastalZones(effectiveJan.

    7,2011)

    22DRAFT

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    WITH SPECIAL EMPHASIS ON: REGIONAL INTEGRATION

    Projects/Activities Description

    ,

    ,andcrosscountrylearning

    StrengtheningCooperation in

    WildlifeProtection

    Buildsharedcapacity,institutions,knowledgeandincentivestoprotectregional

    wildlife. BangladeshandNepal(APL1),Bhutan(APL2),LaosandVietnam(APL3),

    India

    TransmissionandTrade

    ,

    shortages.

    NortheastTradeandTransport

    FacilitationProgram

    EasetransportcongestionatBangladeshIndiaandIndiaNepalbordercrossings

    (incollaboration

    with

    ADB).

    Precursor to

    boosting

    regional

    trade

    in

    subsequent

    .

    CentralAsiaSouthAsia(CASA)

    ElectricityTransmissionProject

    Support(with IFC) thepreparationof thisprojecttosupply1300MWofsurplus

    powerinTajikistanandKyrgyzRepublictoAfghanistanandPakistan.

    Asia University

    for

    Women

    . ,

    othercountries

    like

    Pakistan

    and

    Sri

    Lanka

    coming

    in

    later.

    SouthAsiaTradeandTransitFacilitationAAAandTAProgram

    SouthAsiaWaterInitiative(SAWI)and associatedAbuDhabiDialogue

    23

    OngoingAAA

    RegionalElectricityTrade:TradingArrangementsandRiskManagement

    CrossBorderLaborMobility,Remittances&EconomicDev.inSouthAsia

    SouthAsiaBiodiversityConservationandtheTigerInitiative

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    WITH SPECIAL EMPHASIS ON: GOVERNANCE

    n egra e

    governance

    analyticsatall

    ncrease

    resourcesand

    staffing

    Culturechange

    topromotefrank

    GACdiscussions

    ew

    eman

    drivenbusiness

    tostrengthen

    204

    155%160%220

    84% 86%91%

    90%

    100%

    100

    120

    152

    189 192

    129%

    134%

    130%

    140%

    160

    180

    14

    16

    22

    50%

    60%

    70%

    80%

    60

    80

    111%

    110%

    120%

    120

    140

    5668

    74

    10%

    20%

    30%

    40%

    20

    40

    104%

    100%100

    FY06 FY07 FY08 FY09 FY10

    ProjectSupervisionperProject($k)

    0%0FY08 FY09 FY10

    TotalFiduciaryStaff(GE+)

    Total Governance & Public Sector Staff GE+

    DRAFT 24

    SupervisionBudget/LendingBudget(%)

    ProportionofFiduciary&GovernanceStaffinField

    PostProcurement

    Reviews

    100%

    in

    FY08

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    AAA CREATING AND SHARING KNOWLEDGEFlagshipReportWouldyoupleasereplacetheAAAgraphontheAAA

    MoreProductive

    Jobs

    in

    South

    Asia

    Maindiagnostics

    EmploymentratesarelowinSARexceptinBhutanandNepal,

    mainlyduetolowfemalelaborforceparticipation

    page(slide

    23)

    with

    the

    one

    below.

    Now

    it

    shows

    the

    numbers!

    Koichi

    mp oymentgrowt as usta out eptpacew t a or orcebutalot morenewentrantsinthefuture

    Largeshare

    of

    informal

    employment

    and

    attendant

    vulnerability

    Ruralnonfarmemploymentgrowthhasbeenslow

    KoichiOmori

    SpecialAssistant

    to

    the

    Vice

    President

    SouthAsiaRegion

    TheWorldBank

    Armedconflicthasmajorimpactonjobcreation

    Mainimplications

    Focusonmanufacturingsectorandruralnonfarmsectorfor

    greatestpotential

    to

    absorb

    new

    entrants

    to

    labor

    force

    Phone:(202)4734407 Fax:(202)5223707

    Email:[email protected]

    www.worldbank.org/sar

    Forwarded

    by

    Koichi

    Omori/Person/World

    Bank

    on02 23 201103:09PM ocuson mprov ng us nessenv ronmen ,regu a ons,institutions,andinfrastructure

    Focusondevelopingappropriateskills

    Protectpeoplenotjobspromotegreaterlabormarketflexibilitycoupledwithstrongersafetynetsforunemployed

    4589296 SARCE

    AAASTRATEGY

    ChiefEconomisttopullregionalworkprogramtogetheracrossSAR.

    DRAFT 25

    StrategicapproachtoAAAbasedoncountrybycountryreviewstoensure alignmentwithCAS

    priorities,coherencebyareaofengagement,andclarityofdesiredoutcomes.

    Developmonitoring

    tools

    to

    keep

    track

    of

    the

    broadest

    definition

    of

    AAA

    including

    those

    that

    fall

    in

    the

    grayareabetweenoperationalsupportandresearch.

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    IV. ORGANIZATIONAL SET

    UP TO DELIVER

    26DRAFT

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    RESPONDING TO CLIENT DEMANDSARsameasAFRsNetCommitments ButhashalfnumberofActiveProjects

    30.0

    35.0

    40.0

    300

    350

    400

    450

    BRD/IDA

    10.0

    15.0

    20.0

    25.0

    US$b

    illions

    EAP

    SAR

    ECA 150

    200

    250

    .ActiveProjects

    I

    EAP

    SAR

    ECA

    0.0

    5.0

    Jun

    06 Jun

    07 Jun

    08 Jun

    09 Jun

    10 Feb

    11

    LCR

    0

    50

    Jun

    06 Jun

    07 Jun

    08 Jun

    09 Jun

    10 Feb

    11

    No

    LCR

    IBRD/IDALendingbyUnit,FY11 IBRD/IDALendingbyCountry,FY11 IBRD/IDALendingbyInstrument,FY11

    HD

    14%

    Other

    1%

    PREM

    Afghanistan

    2.8%

    Nepal

    2.2%Pakistan

    SouthAsia

    1.4%

    SriLanka

    2.2%

    Adj.

    1.7%

    InvAF

    11.8%

    9%SD

    Transport44%

    ang a es

    20.8% Bhutan

    0.2%

    India

    Maldives

    0.1%

    15.7%

    Inv

    stand

    27SARPrimarilyInvestmentLendingRegion

    SDOther

    32%

    54.6% 86.4%

    Lending$10billion inFY11

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    MAINTAINING FOCUS ON RESULTS AND QUALITY

    80

    90

    100 SatisfactoryPortfolioOutcomes(%ofprojects)

    SAR Bank

    27.8

    24.6

    28.8 29.330

    35

    )

    DisbursementRatioTrends:FY0610

    SAR Bank

    60

    70

    %23.0

    10

    15

    20

    25

    DisbRatio

    (ILonl

    FY06 FY07 FY08 FY09 FY10*

    SAR 87.5 65.0 76.9 81.3 100.0

    Bank 82.9 76.2 77.2 75.0 68.8

    0

    5

    FY06 FY07 FY08 FY09 FY10

    SAR ualit Assessment of the Lendin Portfolio ALP Ratin

    80

    90

    100

    SARQALP1(29projects) SARQALP2(22projects) BankQALP2(145projects)

    30

    40

    50

    60

    70

    28

    0

    10

    20

    Likelihoodof

    Achieving

    DO(%)Quality

    of

    Design

    (%) Implementation

    Progress(%)Quality

    of

    Bank

    Supervision(%)

    S

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    STAFFING AND DECENTRALIZATIONStaffDecentralizationinhighsecurityareas,resultedinincreasingcosts

    20.0

    SARDecentralizationCosts(US$m)

    15

    16

    400

    450

    500

    locations

    DecentralizationofGF+StaffinSAR

    5.4 5.6

    7.47.1

    9.38.8

    10.0

    .

    12

    13

    14

    150

    200

    250

    300

    350

    affinhighs

    ecurity

    #ofGF+

    staff

    4.5 4.5 5.36.7 7.5

    8.4

    0.0

    .

    FY05 FY06 FY07 FY08 FY09 FY10Facilities/Equipment/Security FieldBenefits

    10

    11

    0

    50

    100

    FY06 FY07 FY08 FY09 FY10 FY11Q2

    %ofGFst

    CO HQ %GFstaffinhighsecuritylocations

    60

    70

    DecentralizationoftaskmanagementinSARFY09 FY10 FY11Q2

    20

    30

    40

    50

    Pr or ty

    n

    FY

    12Continuetomovesectormanagementcloserto

    29

    0

    10

    %LEN

    Tasks

    managed

    inCO%

    SPN

    Tasks

    managed

    inCO%

    AAA

    Tasks

    managed

    inCO

    ecentra ze sta

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    PARTNERING WITH IFC&MIGA

    IFC focusin onInclusiveGrowth ClimateChan e Global re ionalInte rationandAccesstoBasicServices

    Joint Investments

    MaharashtraStateElectricityTransmissionCompanyLtd(MSETCL),India

    JointCountryStrategies in

    India

    Bangladesh

    JointStrategies Joint Advisory Activities

    SpecialEconomicZones,Bangladesh

    HousingFinance,India

    KPEconomicRevitalization Project,. . , ,

    Nepal

    JointSolar

    Mission,

    India

    KarachiPortTrust,Pakistan

    MicroFinance,India

    Nepal

    SriLanka

    Maldives

    Bhutan

    Pa istan

    FinancialSectorStrengtheningProject,

    Afghanistan LandModernization,Bangladesh

    InvestmentClimate(FDI)support,,

    Tourism(e.g.Universal,Taj),Maldives

    ClimateChangesupport(e.g.RiskShareFacility),SL/Maldives

    WaterHealth,India

    JainIrrigation,India

    TaxAdministrationReform,Bangladesh

    Tourism,SriLanka

    DoingBusinessSupport

    Thimpu

    Waste

    management

    and

    Bus

    ServicePPPs,Bhutan

    AndComplementaryactivitiesinIndiasLowIncomeStatesandPakistan

    MIGA

    InvestmentClimatesupport,Nepal

    1.8

    IFCAnnualCommitments($billion)

    MIGAhas$183mgrossexposureinSouthAsia(mostlyPakistan

    andAfghanistan)

    Promotingsouthsouthinvestments: tocover$20mof

    investmentfromIndiaintoAfricaorTFfacilityinAfghanistan,

    allowin MIGAtocoverke investments suchaswithMTN a

    1.3

    1.5 1.51.6 1.7

    0.9

    1.2

    1.5

    30

    SouthAfricacellphoneCompany)

    Providingpoliticalriskassuranceforforeigninvestors:joint

    IDA/MIGAproject

    "Afghanistan

    Investment

    Guarantee

    Facility

    0.7

    0.0

    0.3

    0.6

    FY06 FY08 FY10

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    LEVERAGING OUR RESOURCES THROUGH PARTNERSHIPS

    TRUST

    FUNDS Integratedinoverallworkprogramtosupportkeyareas:disasterreductionandrecovery,financialcrisis,climatechange,

    genderandgovernanceandanticorruption.

    Substantialinsize.InFY10,RETFresourcesavailabletoscaleuptheuseofIDAinSARamountedtoUS$4billionorabout

    35%ofthenewIBRD/IDAcommitments.Mosttrustfundsarerecipientexecuted.

    Focusingoncountrieswithconflict(AfghanistanandPakistan). InPakistan,theBankestablishedinFY11anew10donor

    MDTFfor

    conflict

    affected

    areas.

    Example: AfghanistanReconstructionTrustFund(ARTF) . .

    ItisnowthelargestsourceofonbudgetfinancingforGoA,providingonequarterofthetotal

    budget,andisanimportantplatformfordonorcoordination.

    ThefeeincomeoftheARTFmeetsabout40%ofourcostoftheworkprogram.

    ASIANDEVELOPMENTBANK

    CollaborationonpolicydialogueandPartnering

    implementationofdevelopmentactivities

    BILATERALDONORSLeverageresourcesbypartneringwith:

    AUSAID

    CIDA . .,

    Bangladesh)as

    well

    as

    climate

    change

    (e.g.,

    Bangladesh)

    Apassthougharrangementisbeingestablishedto

    channelARTFresourcestotheADBtofinancelarger

    infrastructureprojectsinAfghanistan

    DFID

    EC

    Japan

    Netherlands

    SIDA

    31

    Coauthoringanalyticalwork(e.g.,Pakistan Flood

    DamageandNeedsAssessments)

    Exploringoptions

    on

    joint

    social

    safeguards

    work

    in

    Nepal.

    Spain

    USAID

    among

    others

    C

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    CONCLUSIONSBECOMING TOMORROWS CENTER OF

    Forthenextfewdecades,whathappensinSouthAsiawill1

    GLOBAL ECONOMIC GROWTH AND POVERTY REDUCTION

    Hometo

    thelargest

    Hometo

    thelargestnumberHometo

    oneofthelargest

    Hometo

    keyfragilestatesina

    geopolitically

    .

    by2050intheworldconsumermarkets importantpartof

    theworld

    TheWBG

    strate

    in

    SAR

    will

    build

    on

    the

    un recedented

    access

    toclientgovernments,andstrongmomentumofdemandfor

    Bankservicesandlendingtoenable:2

    Adynamic

    private

    sectortodrive

    growth

    Askilled

    labor

    forcetorespondto

    newdemands

    Worldclass

    rural

    andurban

    infrastructure

    Greater

    genderequality

    DRAFT 32

    Bettergovernance

    andservice

    delivery

    Regional

    integration

    Protectingthe

    environmentand

    mitigateimpact

    of

    climatechange