34426 Getting to Know the World Bank A Guide for Young People Getting to Know the World Bank Getting to Know the World Bank A Guide for Young People THE WORLD BANK Washington, D.C. © 2005 The International Bank for Reconstruction and Development / The World Bank 1818 H Street, NW Washington, DC 20433 Telephone: 202­473­1000 Internet: www.worldbank.org E-mail: feedback@worldbank.org All rights reserved. 1 2 3 4 08 07 06 05 The findings, interpretations, and conclusions expressed herein are those of the author(s) and do not necessarily reflect the views of the Executive Directors of the International Bank for Reconstruction and Development / The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. 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All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street, NW, Washington, DC 20433, USA; fax: 202­522­2422; e-mail: pubrights@worldbank.org. ISBN­10: 0­8213­5914­2 ISBN­13: 978­0­8213­5914­3 eISBN: 0­8213­5915­0 DOI: 10.1596/978-0­8213­5914­3 Library of Congress Cataloging-in-Publication Data Getting to know the World Bank : a guide for young people. p. cm. Includes bibliographical references and index. ISBN 0-8213-5914-2 1. World Bank--Juvenile literature. I. World Bank. HG3881.5.W57G48 2005 332.1'532--dc22 2005045770 Printed on recycled paper Contents Preface vii Acknowledgments viii 1 Youth and Development 1 What Is Development? 2 Working with and for Young People 3 Listening to Youth Voices 4 World Bank Facts: Your Questions Answered 6 2 Why Do We Need a World Bank? 11 What Is Poverty? 11 A World Divided 12 3 Building Roads to Opportunity: What the World Bank Does 15 The Millennium Development Goals 17 From Farm to Table: A World Bank Project 18 4 How the World Bank Works 23 How the Bank Is Structured 23 How Decisions Are Made 25 Strengthening Development through Sharing Knowledge 26 Debt Relief for Poor Countries 28 Debt Relief: Your Questions Answered 29 5 How the World Bank Is Changing 35 Responding to the Needs of a Rapidly Changing World 36 The Inspection Panel: Empowering Local Citizens to Speak Out 39 Changes at the Bank: Your Questions Answered 42 6 Success Stories from around the World 47 East Asia and the Pacific 48 Europe and Central Asia 51 Latin America and the Caribbean 54 Middle East and North Africa 57 South Asia 60 Sub-Saharan Africa 63 v 7 The Future: Youth and the World Bank 67 Shaping a New Agenda on Children and Youth 69 Engaging Young People as Partners 71 Bank Funding Opportunities 73 Collaborating with Other Organizations 75 How Young People Can Get Involved in the Bank's Work 76 Becoming Part of the Solution 78 Conclusion 79 Resources for Action 80 Acronyms 84 Glossary 86 Bibliography 92 Index 93 Photo Credits 97 vi Preface The idea for this book emerged from our informal conversa- tions. We are young people who work at the World Bank. We are interns, volunteers, junior professionals, and others who wanted to find a way to tell our peers in developing countries, the United States, and other nations just what the Bank does--activities we felt were sometimes misunderstood. We especially wanted to include examples of how the work of the Bank directly affects young people around the world, how its mission has changed over time, and how it is making an effort to engage youth more fully in its new mission. Throughout the writing and production process, we consulted with peers from many countries. This book includes what we learned from online discussions over several months and what we heard in gatherings of young people: in focus groups; in our groundbreaking Youth, Development, and Peace Conference held in Paris in 2003; and in a subsequent con- ference held in Sarajevo in 2004. At these two conferences alone, World Bank staff met with hundreds of young people from more than 80 countries to develop plans for working together in the future. Our hope is that after reading this book, you will have a clearer understanding of the Bank's role in global development, where to go for further information, and how you can get involved in our efforts. We hope you will agree that our generation has much to contribute to positive change in our world. vii Acknowledgments This book was prepared under the guidance of a working group comprising representatives from the World Bank's Youth to Youth (Y2Y) Community, the Children and Youth Unit, and the Office of the Publisher. Thaisa Ysonde Tiglao of the Office of the Publisher coordinated meetings of the working group and collated comments on and reviews of the draft manuscript. Helle Jeppsson coordinated meetings and solicited reviews and other input on behalf of the Children and Youth Unit. Major funding for the project was provided by the Children and Youth Unit. Sheila Kinkade adapted much of the book's content from existing World Bank publications and Internet resources. Chii Akporji provided the glossary. Additional writing and the manuscript editing were provided by Amy DeLouise. Comments during development of the manuscript came from the Y2Y Publication Committee, which consisted of Aseem Agrawal, Julia Anderson, Andrew Beath, Mohini Bhatia, Shehan de Sayrah, Maria Rosario Soraide Duran,Ulrike Ebeling, Katherine Gruene, Heather Ashlee Harkins, Zenaida Hernandez, Helle Jeppsson, Bruna Lecossois, Rachel Marie Pressley, Nancy Rodriguez, Stephanie Saenger, Christine Sedky, Frank Sperling, John D. Stephenson, Thaisa Ysonde Tiglao, Arianne Wessal; and from Chii Akporji, Ana Elisa Luna Barros, Maya Brahmam, Danielle Carbonneau, Dina El Naggar, Kennedy Fosu, Pierre Girardier, Gabriela Gold, Dirk Koehler, Gloria La Cava, Niels Lund, Viviana Mangiaterra, Gerry Rice, Juan Felipe Sanchez, Katherine Sheram, Kafu Kofi Tsikata, John Underwood, Gerold Vollmer, and Nina Vucenik. The following young people also provided useful critiques and direct input: Rachel Makafui Adiepena, Sally-Ann Afedoe, Andrej Angelovski, Kofi Asare Anyemedu, Esi Anorvienyo Anyigba, Frederick Appertey, Bertha Appiah- viii Bosompem, Selma Sumaya Awumbila, Arhizah Blay, Gifty Alimah Blay, Sharon Daplah, Louise Carol Serwaa Donkor, Renata Florentino, David Hanna, Richard Hato-Kuevor, Imelda Iyalla, Michael Kottoh, Alice Mirimo, Teddy Nyasulu, Emmanuel Kofi Obeng, Winston Odzor, Damaris Naa-Kai Okoe, Roselyn E. A. Otoo, Daniela Petreska, Senam Francisca Sakpo, and Brako Eric Siaw, who composed a focus group at the University of Ghana, Legon; and Woubedle Alemayehu (Ethiopia), who also contributed a special piece on her collaboration with the Bank on development issues. A posting on the Bank's Youthink! Web site generated additional comments from 27 countries. The Office of the Publisher managed editorial and print production. Patricia Hord Graphik Design contributed the design, layout, and typesetting. The cover design was based partly on a concept by Louise Derrick. Monika Lynde provided advice on print options and managed the printing phase. Janet Sasser served as an indefatigable production editor, orchestrating and contributing to the many aspects of the process to ensure a quality product. Richard Crabbe Office of the Publisher Viviana Mangiaterra Children & Youth Unit Youth to Youth (Y2Y) Community ix Youth and Development "This generation--yours, my generation--we're the first generation that can look at poverty and disease...and say with a straight face, we can be the first to end this.... We can be the first generation. It might take a while, but we can be that generation.... For the first time in history we have the know-how...but do we have the will?" Bono, lead singer and songwriter for the band U2 in a speech to graduating college seniors, May 20041 What do young people have to do with development? A lot. "Meena" is an animated charac- In many nations, youth stand at the forefront of efforts to ter seen on TV and known address urgent social challenges--advocating for their own throughout Southeast Asia. rights and for the rights of others who are all too often She is the universal replica neglected, or forgotten. Take, for example, Jyotirmayee "Jyoti" of an ordinary little girl who asserts her rights and those Mohapatra of India. At 19, Jyoti launched the Meena Club--an of other girls in society. effort to mobilize local citizens around crucial issues facing women and children. Today, five years later, more than 300 Meena Clubs are working in five districts across India to abol- ish child labor, reduce the infant and maternal death rate, ensure educational opportunities for children, and promote greater understanding of women's and children's rights. There are many examples of young people like Jyoti who were motivated to take action and make a difference in their communities. In today's Africa--especially in South Africa, Uganda, and Zambia--thousands of young people are playing important roles in the fight against HIV/AIDS, educating their peers and the public at large about the dangers of the disease. And in many countries that have since transitioned CHAPTER 1 1 What Is Development? Most dictionaries define development as a process of change for the better, or progress in any given situation. Increasingly, the term has come to mean achieving an acceptable standard of living for all people. This includes giving everyone access to the basics: food housing education jobs health care security The aim of development is to help people become more productive, which allows countries to trade with other countries, and more trade means more goods and services to continue improving living conditions. But to be truly lasting, development must be sustainable and bene- ficial to all. It must meet the needs of the present generation without compromising the ability of future generations to meet their own needs. For example, economic growth must not just provide base wages but must also improve workers'knowledge and skills, thus creating more and better jobs in the future and allowing new businesses to flourish. Development is a complex and cooperative process. It requires an individual country to balance its social, economic, political, cultural, and environmental needs. It also requires the assistance of groups outside the country that can provide ideas, funds, expertise, personnel, and/or experi- ence: multilateral institutions (such as the International Monetary Fund and the World Bank), governments of most of the industrial countries (such as the United Kingdom and Sweden, in the form of direct aid), and charitable organizations (such as CARE and the Mennonite Central Committee). 2 YOUTH AND DEVELOPMENT to democracy--such as Georgia and Indonesia--youth-led campaigns were critical in calling for reforms. Today's young generation represents a powerful force for pos- itive change; yet far too few young people have access to the education, skills, and opportunities that would allow them to live up to their potential. In sheer numbers, this is the biggest single generation of 15- to 24-year-olds ever--more than 1.1 billion! Whether youth feel a part of society or excluded from it will largely determine the future of our world. Working with and for Young People Young people are vital to the World Bank's central mission: to free the world from poverty. Youth can and should be valuable allies in the Bank's efforts to combat hunger and malnutrition, increase access to education, reduce the spread of HIV/AIDS and other diseases, enhance employment opportunities, protect the environment, and reduce national and regional conflicts. Children and youth are often the greatest victims of today's global inequities. They make up nearly half of the world's poor. Of these, more than 460 million young people--more than one and a half times the population of the United States--struggle to survive on less than $2 a day.2 Two dollars a day--that's not much more than stu- dents in London, New York, or Sydney might spend on a cup of coffee. Consider also these problems disproportionately affecting youth: Illiteracy: 133 million of today's youth don't know how to read or write. Disease: Half of all HIV infections occur among individuals ages 15 to 24. Hunger: Every day, 34,000 children die from hunger and CHAPTER 1 3 "When young people are unsuccessful in various areas of their life...they have no hope in the future." Benin youth engaged in World Bank focus group related causes. Did you know... Unemployment: 74 million youth are currently without work (that's 47 percent of the world's total unemployed). That in Malaysia and Morocco you are eligible to vote at the Victimization: During the past decade, 2 million children age of 21, while in Iran, you can have been killed, 6 million left disabled, and 12 million made vote at 15 and in Croatia at 16, if you have a job? homeless as a result of war. One of the easiest and most The children and youth represented by these statistics have little powerful ways for young people control over their circumstances and have no voice in decisions to participate in important decisions that affect their lives is that affect their everyday lives. Until recently, governments by exercising their voting rights; and international development agencies rarely incorporated the yet many youth who are eligible knowledge and opinions of young people into their policy- to vote lack knowledge of their making decisions. Moreover, they often failed to see how youth nation's political system and issues are integral to their efforts to promote sustainable devel- how to participate effectively. opment and economic growth. The World Bank recognizes that to reach important develop- ment goals, young people must be engaged in the process. Successful development work must take their needs, experi- ences, views, and insights into account. Listening to Youth Voices A major milestone in the World Bank's efforts to engage young people more fully in its work was the Paris Youth, Development, and Peace (YDP) Conference held in September 2003. The two-day event brought together more than 100 representatives 4 YOUTH AND DEVELOPMENT of youth organizations from 70 countries The conference pro- vided a forum for concerns, pri- orities, and recommendations on international development issues. Participants also explored existing youth-led approaches to fighting poverty and how these might be applied in other parts of the world. Conference attendees identified four priority areas for the Bank's work with and for young peo- ple: HIV/AIDS and risky Education Conflict Employment behaviors prevention These four themes now form the basis for the World Bank's Children and Youth Framework for Action. (For further infor- mation, see chapter 7.) World Bank­speak The Paris YDP Conference was only the beginning. As it The World Bank has created a tackles a wide range of complex development issues, the vocabulary all its own--a vocab- Bank continues to consult with youth throughout the world. ulary that is often reduced to Many of these individuals refer to a "poverty of the spirit" acronyms.To help you understand the Bank's language, a list of that occurs when young people grow up without hope and the acronyms and a glossary are chance to dream of a better future. included at the end of the book. Said one young Brazilian: "Millions of young people have had their dreams stolen. Yes, dreams! We human beings have to be fed, need air, a home, etc., but more than that, we have to be able to dream...because surviving does not equal CHAPTER 1 5 living, and to live is to be able to grow, to hope, to Origin of the term create, and to plan." "world bank" Although employees of the Bank often hear frustration from The term "world bank" was young people about circumstances beyond their control, they first used in reference to also see that the next generation is hopeful about the future the International Bank and wants to play a role in shaping it. for Reconstruction and Development (IBRD) in an article on the Bretton Woods conference in The Economist on WorldBankFacts:YourQuestionsAnswered July 22, 1944. The first meeting of the Boards of Governors of How and why was the World Bank established? the IBRD and the International Monetary Fund--held in Following the devastation of World War II, in 1944 the repre- Savannah, Georgia, in March sentatives of 44 governments met in Bretton Woods, New 1946--was officially called the "World Fund and Bank Hampshire, in the United States to develop a strategy for Inaugural Meeting." And several rebuilding the international economy. A key outcome of the news accounts of this confer- meeting was the creation of the International Bank for ence, including one in The Reconstruction and Development (IBRD), which would Washington Post, used the term "world bank." What began as a become known as the "world bank," and the International nickname became official short- Monetary Fund. hand in 1975 for the IBRD and the International Development When the IBRD began operating in 1946, this new entity had Association together. 36 member nations. Today most of the nations of the world-- 184 countries--are members. Many developed nations that once borrowed money from the IBRD, including Austria, Denmark, Greece, Italy, and Singapore, are now donors. Where does the World Bank obtain its money? The IBRD (the main lending institution) raises almost all of its money in the world's financial markets by selling AAA-rated World Bank bonds to pension funds, insurance companies, cor- porations, other banks, and individuals around the globe. Bank finances also come from earnings on its investments, fees paid by member countries, contributions made by members (particu- larly the wealthier ones), and the loans repaid by borrowing countries. Why would a country want to borrow from the World Bank? 6 YOUTH AND DEVELOPMENT The Bank has a high credit rating because it has large, well- managed financial reserves. This means it can borrow money at low interest rates and pass those rates on to its borrowing countries. The Bank lends money to middle-income developing countries at interest rates that are lower than the rates on loans from commercial banks. In addition, the Bank lends money to the poorest developing countries--those that often cannot find other sources of financing--at no interest. Countries that borrow from the Bank have a much longer period to repay their loans than commercial banks permit, and they don't have to start repaying for several years after the loan is made. What sectors receive the most funding? In fiscal year 2004, the World Bank focused on three priority sectors: (a) law and justice and public administration, (b) transportation, and (c) health and social services. During 2004 the Bank approved loans and grants totaling $20.1 billion for 245 projects in developing countries worldwide. Of this amount, $11 billion was approved by the IBRD and $9 billion by the International Development Association (IDA), which offers grants and no-interest loans to the world's poorest countries. (For more information on these institutions and the other three that together make up the World Bank Group, see chapter 4.) How is the president of the World Bank selected? By tradition the president is nominated by the Bank's largest shareholder, the United States. And by tradition the Managing Director (the top spot) of the International Monetary Fund is nomi- nated by the European community. The candidate for president (who must be a U.S. CHAPTER 1 7 citizen) is put before the Bank's Board of Executive Directors, who vote on the nomination. Elected for a five-year renewable term, the president chairs meetings of the board of directors and is responsible for the overall man- agement of the Bank. How many people work for the World Bank? The Bank employs more than 10,000 people, with about 7,000 at the headquarters in Washington, D.C., and the rest in its field (or country) offices around the world. World Bank staff--including economists, policy analysts, educators, environmental scientists, health specialists, financial analysts, anthropologists, engineers, and many others--come from 165 nations. What is the relationship between the World Bank and the United Nations? The Bank's formal relationship with the United Nations (U.N.) is defined by a 1947 agreement that recog- nizes the Bank as an independent special- ized agency of the United Nations as well as a member and observer in many U.N. bodies. The Bank has links with the United Nations at various levels. At the execu- tive level, the Bank president and the U.N. secretary general engage in an ongoing dialogue on substantive issues such as poverty eradication, capacity building, humanitarian and postconflict issues, human rights, and the financing of development. At the opera- tional level, the Bank collaborates with the United Nations Development Programme and other U.N. funds and programs on diverse projects through 8 YOUTH AND DEVELOPMENT policy coordination, project implementation, cofinancing, and aid coordination. Notes 1. This address was given at the University of Pennsylvania, where he also said: "I used to think the future was solid or fixed, something you inherited like an old building that you move into when the previous generation moves out or gets chased out. But it's not. The future is not fixed; it's fluid. You can build your own building, or hut or condo, what- ever.... But my point is that the world is more malleable than you think, and it's waiting for you to hammer it into shape. So go forth and build something with it...." 2. All dollar amounts are current U.S. dollars unless otherwise specified. CHAPTER 1 9 Why Do We Need a World Bank? The World Bank is driven by an ambitious mission: to fight poverty around the world. It does so by providing money and technical expertise to the governments of developing World Bank Mission Statement countries. These governments in turn use such support to strengthen their national economies and improve their citizens' Our dream is a world living standards. free of poverty Most of us can relate to how difficult it can be to get a loan To fight poverty with passion and or a credit card with very little credit history or collateral to professionalism for lasting results. back up the loan. Poor countries face a similar situation. That is why the World Bank was created. Although individual To help people help themselves citizens cannot make deposits or withdraw money at the and their environment by World Bank, it does function much like a traditional bank. providing resources, sharing knowledge, building capacity, But its customers are countries. Without a place like the and forging partnerships in the World Bank from which to borrow money, the world's public and private sectors. poorest countries would have few, if any, ways to finance much-needed development projects, such as the building of To be an excellent institution able to attract, excite, and schools, hospitals, and roads. These projects are essential nurture diverse and committed to helping people become educated, live healthy lives, get to staff with exceptional skills who jobs, and contribute as active citizens. know how to listen and learn. What is poverty? Poverty is severe want--the condition that results from not having adequate resources to satisfy one's basic needs. Poverty is hunger. Poverty is lack of shelter. Poverty is unclean drinking water. Poverty is being sick and not being able to see a doctor, being illiterate and not being able to go to school, being unskilled and not being able to find a job. Poverty means fear for the future, living one day at a time. Poverty makes people feel powerless, unable to affect their own lives let alone the powers that govern them. Poverty is a situation people want to escape. Although poverty has common outcomes, it has different faces--from the very young to the very old, in regions both rural and urban--across the globe. Poverty is a call to action for the poor and wealthy alike, a call to change the world so that many more have enough to eat, a place to live, a professional for health care, a place to learn, protection from violence, and a voice in what happens in their communities. CHAPTER 2 11 A World Divided Today scientists can operate a robot on Mars and transplant a beating heart. The Internet makes it possible for people thou- sands of miles apart to "talk" to one another in an instant. Almost anything seems possible. But for all the breakthroughs of modern science and technology, the human landscape remains much the same. Cell phones, cars, computers, and televisions are everyday conveniences that people living in developed nations often take for granted. But these are a distant dream for millions of people in the developing world, many of whom have never made a phone call. Although the Internet has revolutionized the way a great number of the world's citizens communicate and do business, much of the devel- oping world lacks access to computers. For example, nearly 70 percent of North Americans use the Internet regular- ly, but that figure is less than 7 percent in Asia and 2 percent in Africa. Did you know... Ours is a world of striking divides. Consider that: That providing immunizations for Annual income per person in the world's 20 poorest countries every child in the world would cost barely changed over the past 40 years (from $212 in just $1.3 billion more than people currently spend each year on 1960­62 to $267 in 2000­02), whereas annual income in ocean cruises--about $14 billion the richest 20 nations tripled, from $11,417 to $32,339.1 worldwide? Nearly 3 billion people living in developing countries struggle to survive on less than $2 a day, with nearly half earning less than $1 a day. Almost a third of the world's citizens lack access to clean, safe water and to sanitation systems. 12 WHY DO WE NEED A WORLD BANK? "Live life simply so that others may simply live." Gandhi Every day, over 840 million people around the world go hungry. Over 100 million people in the world--almost as many people Did you know... as live in Mexico--have no home to go to, with millions more living in urban slums and crowded tenements. That U.N. peace-keeping in 2003 cost about $2.17 billion, while governments worldwide in the Why should a global society care about reducing poverty and same year spent $950 billion on today's stark divides? First, and foremost, because of the value weapons? 2 we place on human life and the ability of every individual to make the most of his or her potential. As our world grows increasingly interconnected, events in one nation can have a dramatic impact elsewhere around the globe. We see this every day in the movement of refugees seeking to escape conflict and deprivation; in the far-reaching repercussions of economic and political crises; and in the devastating impact of environmental destruction on the land, water, and air we all share. ¥$ Although we live in many nations and How do you fit into this global ? represent diverse cultures, we inhabit the picture? How much money do you same earth. Unless serious steps are taken ? spend in an average day? How many to break the cycle of poverty and the meals do you eat daily? How far do you social inequities that pervade so many have to go to get a glass of clean drinking nations, ordinary desires for peace and water? What kind of home do you live security, decent housing, good nutrition, in? Do you feel safe? health care, quality education, and mean- ingful employment will elude vast num- bers of people for generations to come. Is this the legacy we want to leave? Notes 1. Source: Global Policy Forum at www.globalpolicy.org/socecon/inequal/2004/0224globtamed.htm. Accessed January 2005. 2. Sources: Global Issues at www.globalissues.org and United Nations at www.un.org/apps/news/storyAr.asp?NewsID= 7326&Cr=peacekeeping&Cr1=oper. Accessed January 2005. CHAPTER 2 13 Building Roads to Opportunity: What the World Bank Does The World Bank is one of the world's largest sources of development assistance. In an average year, the Bank lends roughly $18 billion to the governments of about 80 develop- ing countries to support more than 225 projects. In addition to loans, the Bank offers technical assistance and advice on government policies. The World Bank is one of the largest centers The Bank works to reduce today's divides by addressing the for research and root causes of poverty with loans for specific development projects. For example, World Bank loans help countries: analysis in the Supply safe drinking water Build schools and train teachers area of develop- Increase agricultural productivity Manage forests and other natural resources ment economics. Build and maintain roads, railways, and ports Reduce air pollution and other environmental problems Extend telecommunications networks Generate and distribute energy Expand health care, especially for women and children Modernize government structures. CHAPTER 3 15 Sometimes it isn't the money that the Bank provides that is Have you ever felt isolated without a car, bicycle, or means the most important kind of assistance. Often it's the technical of public transportation to get skill and experience the Bank staff bring to a project or the to a job or school, or to visit environmental and social standards they apply. The World with friends? Lack of basic Bank is one of the largest centers for research and analysis in infrastructure--that is, trans- portation, energy, water supply, the area of development economics, which includes the study sanitation, electricity, and of poverty, trade, globalization, and the environment. It has telecommunications--is a major specialized departments that use this knowledge to advise obstacle to economic growth countries in such areas as health, education, nutrition, and social progress in many finance, justice, law, and the environment. For example, the developing countries. This is why so much of the World Bank might be asked by a country to help it better compete in Bank's work is focused on the global economy. To accomplish this goal, the Bank might helping countries improve their develop projects to improve the skills of the country's labor infrastructure. But the Bank force--an integrated approach that includes education, health also works on projects that improve lives in other ways--by care, on-the-job training, and professional development. eliminating corruption, resolv- ing conflicts, and promoting As a result of Bank-funded projects, millions of people in poor greater citizen participation communities now have access to schools, medical centers, in government. water, and electricity. Such communities are better equipped to fight disease and protect the environment. Imagine the dif- ference it can make, for example, when a rural farming village is able to connect to regional markets through the construc- tion of decent roads. Not only can villagers buy and sell goods more easily but they can also reach educational opportunities, health care, and other important services. Such was the case in Guatemala's Western Highlands, where until recently, farmers had to carry their produce to market on their backs. This was particularly difficult during the rainy season, when the roads were impassable. World Bank funding helped villagers build a road for cars, trucks, and buses to transport people and goods year-round. With easier access to markets and the resulting increase in earnings, the Guatemalans now enjoy an improved standard of living. 16 BUILDING ROADS TO OPPORTUNITY: WHAT THE WORLD BANK DOES The Millennium Development Goals Although the World Bank is a large institution with a broad mandate, its efforts focus squarely on reaching the Millennium Development Goals (MDGs). The Millennium Declaration, signed by 189 countries in September 2000 at the United Nations Millennium Summit, represents a partnership of countries deter- mined "to create an environment--at the national and global levels alike--which is conducive to development and the elimination of poverty." This declaration led to the adoption of the MDGs, which outline a specific agenda for reducing global poverty. The Millennium Development Goals Eradicate extreme poverty and hunger. Ensure environmental sustainability. By 2015 halve the number of people in Integrate the principles of sustainable extreme poverty and the number of development into country policies, and people who suffer from hunger. reverse the loss of environmental resources. Achieve universal primary education. Ensure by 2015 that all children will By 2015 halve the proportion of people be able to complete a full course of without sustainable access to clean, primary schooling. safe water. Promote gender equality and By 2020 significantly improve the lives empower women. of at least 100 million slumdwellers. Eliminate gender disparity in primary and secondary education by 2005 and Develop a global partnership for in all levels of education by 2015. development. Further develop an open, rule-based, Reduce child mortality. predictable, nondiscriminatory trading By 2015 reduce by two-thirds the death and financial system. rate of children under five years of age. Address the special needs of Improve maternal health. least-developed countries, including By 2015 reduce by three-quarters debt relief. the death rate of women from pregnancy-related causes. For developing countries: originate and implement strategies for decent and Combat HIV/AIDS, malaria, and other productive work for youth; work with diseases. pharmaceutical companies to provide By 2015 halt the spread of HIV/AIDS, access to affordable drugs; and work malaria, and other major diseases, and with the private sector to make available begin to reverse the spread. the benefits of new technologies. CHAPTER 3 17 Did you know... That agenda lists eight goals (see page 17) and sets forth guidelines for monitoring progress in reaching those goals. That on average, someone living in Today the MDGs unite the efforts of virtually all organiza- a developed nation consumes twice as much grain, twice as much fish, tions working in development. The goals represent an three times as much meat, nine unprecedented level of world consensus on what is needed to times as much paper, and eleven reduce poverty over the short term and the long term. times as much gasoline as someone living in a developing nation? The MDGs are not new for the Bank. The first of the goals, Have you thought about what you poverty reduction, has been the Bank's overarching objective consume and how your habits for many years. What are new are the guidelines and dead- impact the earth and its ability to lines for monitoring progress toward reaching the goals. Also sustain all life? Protecting the envi- new is the vast number of partners dedicated to achieving ronment and preserving natural resources is a responsibility shared these goals. by all the earth's citizens.There are many ideas on how you can get Although the world is making progress toward meeting the involved in your own community Millennium Development Goals, that progress is uneven and throughout these chapters, and a list of resources is provided at the too slow. A large majority of countries will reach the MDGs end of the book. only if they obtain substantial support from outside. The challenge for the global community is to mobilize financial support and political will, reorienting development policies and reaching out to partners in the nonprofit and private sectors. Consumption of someone living in a From Farm to Table: A World Bank Project DevelopingNation When a woman in Denmark savors the taste of a sweet, suc- culent mango, she rarely takes time to think about where it came from and how it got to her table. We don't hear much about the way agricultural goods are produced and distrib- uted. Yet the process involves the lives of millions of farm- Consumption of someone living in a ers--many of them poor--around the world. DevelopedNation Source: World Resources Institute In the case of the Danish woman, it could very well be that the mango on her plate was grown in the West African nation of Mali. As a result of a $6 million World Bank loan, new markets have opened up for Malian mangos. Their export to European markets has increased profits for poor farmers and allowed them to achieve a higher standard of living. 18 BUILDING ROADS TO OPPORTUNITY: WHAT THE WORLD BANK DOES The mango project began in the late 1990s, when the Malian govern- ment approached the Bank M about ways to help the nation's small-scale farmers, who were struggling for survival. Mali is one of the poorest countries in the world, with more than 60 percent of its people living in poverty. Most Malian citizens live in rural areas and rely on farming for their source of income. Mali is one of the world's top exporters of cotton, but farmers who depend on a single crop are vulnerable if prices fall or if new com- petitors emerge. So the Malian government sought ways to diversify the country's crops. Everyone agreed that exporting mangos was a strong option given the nation's warm climate and favorable soil conditions. But nagging questions remained about how to transport the fragile fruit and how to expand markets for the produce. Technical advice from the World Bank soon provided answers to these and other logistical questions. Before determining whether or how the project would be carried out, Bank staff checked to see how it fit within Mali's overall Country Assistance Strategy (CAS). The CAS, which is based on Mali's own devel- opment priorities outlined in its Poverty Reduction Strategy Paper (see box on page 20), summarizes the Bank's program of lending and nonlending activities in Mali based on a range of economic and social fac- tors and concerns, including health, education, agri- culture, and private sector growth. The CAS developed for Mali emphasized building the nation's rural infrastructure (for example, construct- ing proper roads for transporting goods), diversifying CHAPTER 3 19 TheProjectCycle In 2004 the World Bank lent $20 billion for projects in more than 100 countries. Most projects that receive financing and technical support from the Bank pass through a series of steps known as the "project cycle." The steps involved in the cycle ensure that a given project fits within a nation's long-term strategy to reduce poverty. The cycle also ensures that prospective projects are well researched, designed, and evaluated, and that diverse interested parties (stakeholders) are engaged in the process. Even before a project is identified, low-income countries seeking funding from the Bank develop a Poverty Reduction Strategy Paper (PRSP). The document is drafted by the national government in close consultation with various local groups, including nongovernmental organizations, grassroots citizens groups, academia, trade unions, cooperatives, the private sector, and increasingly, young people. This process is based on the notion that those closest to local problems know the potential solutions best. A PRSP includes an analysis of the poverty situation within a country, root causes, key social indicators (e.g., data related to health, education, and employment), and existing government programs. It also describes targets for improving, for example, the quality of education, access to clean water, and economic development. Following the completion of a PRSP, the country government consults with the Bank and other donors and stakeholders. The Bank then develops a Country Assistance Strategy (CAS) based on the country's priorities outlined in the PRSP. Country Assistance its agricultural production, enhanc- Strategies ing access to education and health Project care, and improving housing and Evaluation identification water and sanitation services. The mango project, with its goal of diversifying agricultural produc- Understanding Implementation tion and thus increasing the the Preparation completion Project Cycle income potential of poor families, fit well within the CAS, making it an ideal project for the Bank to Appraisal fund. Implementation & supervision Approval Next, Bank staff worked closely with the Malian government, the private sector, technical experts, and the farmers themselves to pre- pare a detailed plan for carrying out the project. Often the greatest resources the Bank brings to such a project are rela- 20 BUILDING ROADS TO OPPORTUNITY: WHAT THE WORLD BANK DOES tionships with organizations and individuals who can offer Results of the Malian valuable advice and services. Imagine, for example, if you Mango Project wanted to export a product but didn't know how to speak other languages, contact foreign buyers, or research export proce- 1. Shipping delays between dures. The World Bank can, and did, help to bridge such gaps. Sikasso, Mali, and northern Europe were reduced from 25 to 12 days. Throughout the planning process, the Bank collaborated closely with Agence pour la Promotion des Filières Agricoles, 2. Grower unit prices increased a nonprofit government agency established to create by 25 percent. connections between Mali's growers and markets abroad. In 3. Employment in the pack- addition, a small team of Bank staff and consultants undertook houses reached 150 people several missions to Mali to offer technical assistance and to (with 60 percent women), fine-tune the plan. Once the World Bank's Board of Executive who earned wages higher than the national average. Directors approved the plan, the project was ready to begin. 4. Net profit for the project Bank staff and technical consultants worked to foster rela- was $44,598, which secured tionships between individuals and organizations who had an internal rate of return of not worked together before. For example, they introduced 70 percent. a trader from Côte d'Ivoire to producers from Mali, and the 5. Produce quality levels were region's first mango joint venture was born. This venture was rated "high," with no loss a good collaboration, combining the exporting expertise of in terms of repacking or the Ivorians with the production know-how of the Malians. discarded produce. After 12 months of preparation, the mango project sent its 6. Customer response to the first shipments of fruit to northern Europe in 2001. produce was excellent, in terms of taste and general Today a Danish woman can eat a Malian mango for break- appearance. fast because the amount of time it takes for a shipment of mangos to travel from Mali to northern Europe has been more than halved, from 25 to 12 days. Farmer revenues in Mali have increased, and a new packing plant has created jobs, especially for women. Mali still has terrible poverty, but the World Bank­supported mango project has brought the country one step closer to its goal of achieving a better life for its poorest citizens. CHAPTER 3 21 How the World Bank Works Classifying Countries The World Bank works with local government officials, private citizens, representatives of nongovernmental organizations, In carrying out its work, the Bank business people, and others to identify, plan, and carry out classifies country economies as hundreds of development projects around the world. low income, middle income (subdivided into lower middle and Through these projects, the Bank works to ensure greater upper middle), and high income. local "ownership" of development programs and initiatives. Low-income and middle-income Ultimately these efforts help to reduce the debt burden of economies are sometimes referred the world's poorest countries. to as developing economies (countries). The terms industrial or developed refer to countries whose economies are high income. How the Bank Is Structured On the basis of 2003 gross national income figures, an average annual per capita income is calculated as: When people talk about the World Bank today, they are actually referring to two institutions: the International Bank $765 or less for low-income for Reconstruction and Development (IBRD) and the countries International Development Association (IDA). Loans and $766 to $3,035 for lower-middle- assistance for developing countries are distributed through the income countries $3,036 to $9,385 for upper-middle- IBRD, which assists middle-income countries and creditworthy income countries poor countries, and IDA, which focuses exclusively on the $9,386 or more for high-income world's 81 poorest countries (home to 2.5 billion people). countries. Since Bank operations first began in 1946 with 38 members, $765 both the number of members and conditions in the world have changed dramatically. In the 1950s and 1960s, many $3,035 countries became independent nations and joined the institu- tion. The Bank expanded and so did the development needs $9,385 of its members. $9,386 The five institutions, including the IBRD and IDA, that now 0 2,000 4,000 6,000 8,000 10,000 make up the World Bank Group (see page 24) specialize in In what categories above would different aspects of development, but they work collaboratively you place Argentina, Indonesia, toward the overarching goal of poverty reduction. They Kazakhstan, and Kenya? provide loans, policy advice, technical assistance, and .emocni wol = ayneK dna ,emocni elddim knowledge-sharing services. rewol = natshkazaK ,emocni wol = aisenodnI ,emocni elddim reppu = anitnegrA :rewsnA CHAPTER 4 23 Five Institutions = One Group The International Bank for Reconstruction and Development (IBRD), the original "world bank," aims to reduce poverty in middle-income and creditworthy low-income countries by promoting sustainable development through loans, guarantees, and (nonlending) analytical and advisory services. Data: established in 1945, 184 members, cumulative lending of $394 billion, and fiscal 2004 lending of $11 billion for 87 new operations in 33 countries. The International Development Association (IDA) supports country-led poverty reduction in the poorest countries with interest-free credits and grants--money provided by contribu- tions from members. Data: established in 1960, 165 members, cumulative commitments of $151 billion, fiscal 2004 commitments of $9 billion for 158 new operations in 62 countries. The International Finance Corporation (IFC) promotes economic development through loans to the private sector in developing countries. Data: established in 1956, 176 members, a committed portfolio of $23.5 billion, and fiscal 2004 commitments of $4.8 billion for 217 projects in 65 countries. The Multilateral Investment Guarantee Agency (MIGA) encourages private companies in the international community to invest in developing countries by providing guarantees against such risks as breach of contract, war, and currency inconvertibility. Data: established in 1988, 164 members, cumulative guarantees of $13.5 billion issued, and fiscal 2004 guarantees of $1.1 billion issued. The International Centre for Settlement of Investment Disputes (ICSID) helps encourage foreign investment in developing countries by providing international facilities for arbitra- tion of investment disputes. Data: established in 1966, 140 members, 159 total cases registered, and 30 fiscal 2004 cases registered. 24 HOW THE WORLD BANK WORKS The World Bank Group is managed by its member countries Annual Meetings (borrowers, lenders, and donors), and its efforts are coordi- nated with a wide range of partners, including government Each autumn, the Board of Governors of the World Bank agencies, nongovernmental organizations, other aid agencies, and the International Monetary and the business, or private, sector. Today 60 percent of staff Fund (IMF) hold their Annual members of the Bank Group--all five institutions--are based Meetings to discuss a wide in countries that receive assistance. spectrum of issues related to poverty reduction and interna- tional economic development. The Annual Meetings provide a How Decisions Are Made forum for international coopera- tion and enable the Bank and How are important decisions made at the World Bank IMF to better serve their member countries. Approximately concerning critical global issues, such as debt relief and lending 10,000 people attend the priorities and policies? The Bank is run like a cooperative, meetings, including about 3,500 with its member countries as shareholders, and it is operated members of delegations from for the benefit of those using its services. Member countries member countries of the each buy shares, which helps build the Bank's capital and Bank and IMF; roughly 1,000 representatives of the media; borrowing power. The number of shares is roughly based on more than 5,000 visitors and the size of a country's economy. The United States is the special guests drawn from largest single shareholder, which gives it 16.41 percent of the private business, the banking votes, followed by Japan (7.87 percent), Germany (4.49 community, and nongovernmen- tal organizations; and staff of the percent), the United Kingdom (4.31 percent), and France Bank and IMF. (4.31 percent). The rest of the shares are divided among the other 179 member countries. The government shareholders are represented by a Board of Governors. Generally these governors are country ministers, such as ministers of finance or ministers of development. The governors are the ultimate decision makers in the World Bank. They meet once a year at the Bank's Annual Meetings (see sidebar). Because the governors meet only once a year, they outline specific duties for their executive directors, who work on-site at the Bank. Every member government is represented by an executive director. The five largest shareholders (France, Germany, Japan, the United Kingdom, and the United States) CHAPTER 4 25 appoint an executive director each, and the remaining member countries are all represented by 19 executive directors. The Bank's 24 executive directors make up the Board of Executive Directors. They oversee the Bank's business, including approving loans and guarantees, new policies, the administrative budget, Country Assistance Strategies, and borrowing and financial decisions. Strengthening Development through Sharing Knowledge The Bank places a premium on creating, sharing, and analyzing cutting-edge knowledge related to development. Much of this important work is carried out through the World Bank Institute (WBI). Created in 1999, the WBI shares the Bank's expertise and that of its member countries with policy makers and decision makers throughout the developing world. WBI's core activities include: Training clients and World Bank staff Carrying out policy consultations Developing "learning networks" World Bank Time Line 1944 1946 1947 1948 United Nations The World Bank First loan of $250 million is First development Monetary and Financial formally begins given to France. loan of $13.5 million is Conference draws up operations on June given to Chile. World Bank Articles of 25. First loan appli- Agreement at Bretton cations are received Woods, New Hampshire, from Chile, U.S.A., with 44 countries Czechoslovakia, represented.The primary Denmark, France, purpose of the new Luxembourg, and institution is to rebuild Poland. Europe after World War II. 26 HOW THE WORLD BANK WORKS Training clients and staff Publishing books, working papers, and case studies. WBI's research, statistical databases, and publications cover a multitude Policy Publishing consultations of issues related to education, com- munity empowerment, globalization, macroeconomics, good governance, health and population, and sustainable development, among others. Developing Through the Global Development networks Learning Network, the WBI uses satellite technology and the Internet--as well as traditional teaching methods--to deliver nearly 600 learning programs a year to over 47,000 people in 149 countries. Participants in the courses include government officials, academics, business leaders, and journalists. For further information, see www.worldbank.org/wbi. You may have accessed World Bank statistics and studies in your own academic or professional work. Through the Development Education Program, the Bank provides teachers, students, and others interested in development with tools 1951 1956 1960 1963 Finland and Yugoslavia International Finance International "I Have a Dream" speech is are the first countries to Corporation (IFC) is Development delivered by Martin Luther King, repay their Bank loans established as an Association (IDA) Jr., on the steps of the Lincoln in full. affiliate of the Bank is established as Memorial in Washington, D.C., to lend to the private an affiliate of the on August 28. sector in developing Bank to lend to countries, with capi- the world's poor- tal of $100 million. est countries, with initial funds of $912.7 million. CHAPTER 4 27 and resources to study--and think critically about--the complex social, economic, and environmental issues involved in achieving sustainable development. For further information, see http://www.worldbank.org/depweb/. Debt Relief for Poor Countries The mango project described in chapter 3 is one of many initiatives undertaken by the Bank and the Malian government to reduce poverty and stimulate economic growth in that nation. Mali is also one of nearly 30 poor countries to qualify for debt relief under the Debt Initiative for Heavily Indebted Poor Countries (HIPC)--pronounced hip · ick-- Initiative launched by the Bank and the International Monetary Fund in 1996. Under the initiative, major international lenders, including the World Bank and the IMF, agreed to cancel more than two-thirds of the outstanding debt of countries that qualified for the program. When governments decide to participate in the HIPC Initiative, they agree to introduce a series of reforms designed to encourage economic growth and reduce poverty. These include: 1963 1966 1967 1970 The 18 newly inde- International Developing countries form the Bank's new commitments pendent African Center for Group of 77 as a convention and exceed $2 billion for the countries join the Settlement of negotiation arm. France, Germany, first time. Bank. Investment Japan, the United Kingdom, and Disputes (ICSID) the United States form the Group Bank launches the is established. of 5 (G5) to convene meetings of Junior Professional finance ministers and governors of recruitment and central banks. (With the addition training program of Italy and Canada in 1976, the (now the Young group became G7; and with the Professionals addition of Russia, it is now known Program). as G8.) 28 HOW THE WORLD BANK WORKS Countries Receiving Debt Introducing sound macroeconomic policies Relief Benefits under the Creating a sound legal system HIPC Initiative Establishing a reliable and accountable financial system. Benin Bolivia The governments also develop detailed plans to improve the Burkina Faso quality of public services and to improve the quality of Cameroon Chad life for the poor. When a country makes this pledge and is Democratic Republic of Congo accepted by the Bank, this is called the decision point Ethiopia and debt relief is granted. Once the pledged reforms are The Gambia achieved, which is the completion point, the debt relief Ghana becomes permanent. Guinea Guinea-Bissau Guyana To date, 27 countries (see sidebar) have received debt relief Honduras totaling $12.4 billion under the program, which is expected Madagascar to amount to $53 billion over the next 20 years. Malawi Mali Mauritania Mozambique Debt Relief: Your Questions Answered Nicaragua Niger How did countries accumulate so much debt? Rwanda São Tomé and Principe Many developing countries borrowed money to fund domestic Senegal Sierra Leone projects in the 1970s and 1980s, when prices for basic com- Tanzania modities (e.g., mining, agricultural products) were high. They Uganda assumed that the high prices and earnings from exports would Zambia 1974 1975 1979 1980 World Bank President Robert The Vietnam War ends Bank's new com- The People's Republic McNamara delivers an Annual as the last Americans mitments exceed of China assumes Meetings speech in which, for the are evacuated and $10 billion for the representation for first time, poverty reduction is placed Saigon falls to first time. China and quickly at the top of the Bank's agenda. Communists in April. becomes one of the Bank begins largest borrowers. lending for health projects. CHAPTER 4 29 be sustained. But the oil-price shock and a global recession in the late 1970s and early 1980s caused commodity prices to fall, and these countries found themselves with huge debt repayments. Through the 1980s and early 1990s, lending continued to fund policy reforms in the hope that these countries could grow their way out of trouble. But for a number of reasons, including policy decisions made by the govern- ments involved, the expectations of increased growth did not materialize. Domestic factors also played a significant role in contributing to increased debt. Many countries, both in the middle- and in the low-income categories, continued spending beyond their means, with high trade and budget deficits and low savings rates. They borrowed more heavily, but often this new bor- rowing did not translate into productive investments, which were supposed to generate returns to repay the debt. More specifically, poor public sector management, including some- times poor project selection by donors, meant the loan funds did not bring long-term benefits because they failed to increase productivity and generate exports as planned. Droughts, floods, civil wars, weak economic policies, and poor governance all exacerbated the debt buildup. Some loans were taken out simply to service existing debt. 1982 1983 1988 1989 1990 Bank loan Bank establishes Multilateral Bank's Executive Nelson Mandela,lead- finances a 90-mile the Small Grants Investment Board endorses ing anti-apartheid highway across Program to fund Guarantee Agency a directive on campaigner,is freed the Amazon rain activities promot- (MIGA) is estab- disclosure of after 27 years in forest in Brazil, ing cooperation lished to encourage information. prison in South Africa, unintentionally between non- private companies on February 11. attracting a large governmental to invest in devel- influx of settlers organizations, oping countries. and spurring governments, deforestation and academics, and an international media. outcry. 30 HOW THE WORLD BANK WORKS Why not just cancel the debts of the world's poorest countries? The World Bank strongly supports debt relief. There are several important considerations when discussing proposals for 100 percent debt relief. First, for such debt relief to have the desired effect, it must be provided on top of whatever assistance a country currently receives toward reaching development goals. It is also essential that 100 percent debt relief be provided in a way that does not decrease the financial resources available to other poor countries. Finally, it would not be fair to divert assis- tance from other developing countries that suffer acute poverty and yet manage their debts responsibly. Shouldn't all 27 countries in the Heavily Indebted Poor Countries Initiative have completed the program by now, instead of only 18? Debt relief starts immediately after the decision point, when agreement on the parameters of the program is reached between the country and creditors. This means that HIPC benefits are already flowing to 27 of the 38 potentially eligible countries. In some cases, formulating poverty reduction strategies--a requirement under HIPC--is taking longer than expected. This is because countries are engaged in broad 1992 1993 1994 1995 1996 The Bank's World An independent Bank unveils a United Nations IMF,World Bank, and Development Inspection Panel is three-year, $1.2 Conference on donors launch the Report focuses on established to billion program to Women, held in Heavily Indebted the environment. investigate external assist Palestinians Beijing, focuses on Poor Countries complaints from in the West Bank gender and links (HIPC) Initiative to individual groups and Gaza to health and alleviate debt burden. negatively affected in transition to development. by Bank-funded autonomous rule. projects. World Bank celebrates its 50th anniversary. CHAPTER 4 31 consultations with stakeholders, which is something that needs to be encouraged. Reform takes time to implement and take hold. Are the standards for reaching the HIPC Initiative completion point too high? It is important to maintain standards for policies and proce- dures if high-impact poverty reduction programs are to succeed. The standards are designed to ensure that maximum benefits are attained through the initiative, that the freed-up money is used well, and that it reaches the poor. Why did some low-income countries avoid a debt crisis? Not all low-income countries suffered a debt crisis as a result of borrowing in the 1970s and 1980s. Countries in the so-called "tiger economies" of East Asia--China and India-- dramatically cut their rates of poverty using loan funds to diversify their exports away from a reliance on agricultural commodities. They were also able to attract significant foreign investment and generate growth, which contributed to poverty reduction. 1997 1998 1999 2000 Conference on Bank holds first Bank adopts the Globalization becomes the Global Climate Development Comprehensive Development focal point for demonstrations Change is held in Marketplace to Framework (CDF) in recogni- against the IMF and World Kyoto, Japan. reward innovation tion of the need for a more Bank at their Annual Meetings in development. holistic approach to develop- in Prague. ment, helping countries determine their own needs. A vision for the new millen- nium is articulated: "Our dream is a world free of poverty." 32 HOW THE WORLD BANK WORKS How could debt cancellation actually hurt some countries? Did you know... All countries are trying to attract investment from abroad, That in Mozambique, an entrepre- which is vital for the growth of their economies. To do so, neur seeking to start a new busi- ness must complete 16 procedures countries need to establish a credit history with commercial taking an average of 214 business lenders and to demonstrate to potential investors that they days? In Italy such procedures take are sound places to invest. But if all of their debt is canceled, an average of 62 business days. these countries may lose their credibility. In the long-term, But Canada requires only 2 start-up procedures, and the process takes this will make it difficult for countries to borrow money and just 2 days. attract foreign investors. Africa Investors--as well as local entrepreneurs--are also attracted to 214 a business climate that promotes growth. Compared with rich countries, businesses in poor countries are burdened with many more regulations, three times the administrative costs, nearly twice the bureaucratic procedures and delays, and Italy fewer than half of the property rights protections. Poor coun- 62 tries have much to do to develop a business climate in which companies can flourish and give back to the community. Canada 2 Source: 2004 Doing Business 2002 2003 2003 2004 The New Partnership for Performers Bono of U2, First World Bank Youth, Bank's second Youth, Africa's Development Beyonce,andtheEurythmics Development, and Peace Development, and (NEPAD) is launched by are among the acts that Conference, held in Paris, Peace Conference, African countries and is appear at a Nelson brings together more than held in Sarajevo, supported by the Bank. Mandela­backed AIDS 100 representatives of brings together more awareness benefit concert youth organizations from than 170 youth repre- Bank and its partners dubbed"46664,"the 70 countries. sentatives from 83 establish the Education number Mandela wore in countries. for All fast track to help prison.The concert takes ensure universal pri- place in South Africa and World Bank mary education by 2015 is broadcast in 166 coun- celebrates its 60th (23 countries are invited tries on World AIDS Day, anniversary. to join). November 29. CHAPTER 4 33 How the World Bank Is Changing Did you know that among development organizations, the World Bank is the world's largest funder of educational pro- grams and HIV/AIDS initiatives? Or that the Bank is one of the largest international funders of biodiversity projects and is a leader in the global fight against corruption? If you didn't, you are not alone. Over the past decade, the focus of the Bank has changed and so has its approach. The World Bank is now dealing with newer issues, such as gender equality, "I never imagined community-driven development, and the rights and roles of myself working at indigenous people (those native to a geographical area) in devel- opment. Its support for social services such as health, nutrition, the Bank. I was and education has grown from 5 percent in 1980 to 23 percent one of those in 2004. Today countries are coming to the Bank with their own plans for helping their poor citizens, and the institution anti-globalists, has adopted new ways of working with them. working to promote The Bank has had successes and learned lessons, which have social justice." resulted in recent shifts in strategies and priorities as it seeks to maximize its impact and respond to the needs of a rapidly Kimberly Switlick changing world. Currently a Junior Professional Associate (JPA) in the Bank's Health, Nutrition, and Population division, 27-year-old Kimberly Switlick admits her views about the Bank have evolved as her knowledge of international development has grown. witlick S A native of Wisconsin, U.S.A., Kimberly was accepted into the JPA program in 2003 after completing a master's degree in public health at George Washington University. Now she's conducting research and developing tools aimed at main- imberly streaming adolescent and reproductive health into HIV/AIDS programs and iden- K tifying promising approaches to promoting maternal health. Having worked at the grassroots level, first in the West Bank and then in Profile: Bangladesh, Kimberly says that her World Bank experience has given her a new and valuable perspective on complex development issues. Although she sees herself eventually working for a nongovernmental organization, Kimberly describes her Bank experience as "a great opportunity to learn about population issues worldwide." She says, "It's opened doors and helped me understand how policies and partnerships work." CHAPTER 5 35 LookingBack: WorldBankSuccesses Since its founding 60 years ago, the Responding to the Needs of a Rapidly World Bank has contributed to Changing World progress in many areas. Bank lending and the sharing of its extensive knowl- edge and experience have helped local Over the past two decades, the world has undergone a pro- people worldwide to address their found process of transformation. Increasing global interde- most urgent challenges. For example, pendence has brought with it both opportunities and enor- the Bank has: mous challenges. Access to global information through Assisted the nations of the former radio, television, the Internet, and advertising images has Soviet Union and Eastern Europe in fueled expectations of better living standards. At the same developing their economies to the time, poverty and the lack of education and opportunity point at which a large group of these countries--Czech Republic, translate into billions of people living on the margins of Estonia, Hungary, Latvia, Lithuania, society, exposed to the sights and sounds of a new world but Poland, Slovakia, and Slovenia-- unable to participate in it. qualified for and were admitted to membership in the European Union in 2004. Bulgaria, Croatia, and As the world struggles with the visible social and Romania are current candidates for economic divides, positive trends have also emerged. membership. Rising democratization has spurred the growth Collaborated to eradicate river of civil society organizations around the globe. blindness in 11 West African nations Today's nongovernmental organizations are (see sidebar on opposite page). addressing some of the most urgent issues of Enabled East Asian nations to bring our time. And they are offering creative solu- millions out of poverty over the past tions for expanding educational opportunities, generation--largely through rural protecting the environment, preventing the development assistance--and provided financial support to these spread of HIV/AIDS, and promoting greater same nations as they confronted a citizen participation in decision making. severe financial crisis in 1997­98. Facilitated China's entry into the But they can't win the battle against poverty alone, global economy in the late 1970s and neither can the World Bank. What's becoming and early 1980s through advice increasingly clear is that collaborative efforts are not only and lending. desirable but essential to attain a shared goal of improving Helped India overcome famine in the quality of life for millions around the world. As a result, the 1960s through support for its diverse sectors of society--including international aid "green revolution,"which substan- tially increased the production of agencies, government, private business, and grassroots such crops as rice and wheat by organizations--are finding new ways of working together to introducing new strains of high- achieve lasting solutions. yield seeds. Played a vital role in the 1940s and In light of these dramatic changes in the global landscape, 1950s in the reconstruction of the World Bank initiated a series of reforms and new Europe and Japan after World War II. methods of pursuing its mission in the early 1990s. One of 36 HOW THE WORLD BANK IS CHANGING Fighting River Blindness in Africa River blindness, or onchocerciasis, is a disease that has long brought the most significant changes in the Bank's priorities was the suffering and misery to millions of Africans.The disease is caused by decision to focus more effort on reducing poverty and parasitic worms borne by black- addressing social needs, compared with the Bank's traditional flies that breed in fast-flowing emphasis on stimulating economic growth. The sharper rivers. It causes total blindness in focus on poverty reduction emerged from the realization about 10 percent of its victims and has forced farmers to flee large that too many poor people failed to benefit from economic tracts of fertile land near rivers. stimulus measures alone and continued to struggle in poverty. In a swath of Africa from Senegal to Ethiopia in the north and from The Comprehensive Development Framework Angola to Mozambique in the south, 30 countries are infested. Another important change in the way the Bank operated came And nearly 500,000 people have in the late 1990s with the adoption of the Comprehensive severely impaired vision, 350,000 Development Framework (CDF). The CDF represents an more are totally blind, and 6.5 approach to development whereby countries become the leaders million are infected with the parasite. But river blindness is in and owners of their specific development and poverty being effectively handled by an reduction policies. Rather than prescribe to poor countries a alliance of governments, private particular course of action, the Bank provides them with businesses, and international valuable tools and the resources with which to determine their agencies,including theWorld Bank. own development needs and how best to address them. The In 1974 the Onchocerciasis Control Bank now encourages and assists countries in developing their Programme (OCP) was established own Poverty Reduction Strategy Papers, which form the basis by the Food and Agriculture Organization, the United Nations for Bank lending and are updated annually. Development Programme, the World Bank, and the World Health Expanding the Bank's Vision Organization.Today the program attacks the disease on two fronts: Building on the CDF, other recent shifts in the way the Bank it sprays an environmentally safe does business include both focus and process. Specifically insecticide to control the black- they include: flies, and it treats infected individ- uals with a drug provided for free. This approach has halted trans- Comprehensive, coordinated approaches. Recognizing mission and eliminated the dis- that too often decisions about development initiatives were ease as a public health problem in carried out in an isolated, fragmented manner, the Bank is a region that covers 40 million placing greater emphasis on holistic, long-term strategies, people in 11 West African countries. which engage the social, human, governance, environmental, Over time, the OCP has prevented economic, and financial aspects of development. 600,000 cases of blindness, and 18 million children born in now-controlled areas have been Partnership building. To maximize the resources and spared the risk of the disease. expertise available to fight poverty within a given country, And 25 million hectares of farm- the Bank actively pursues collaborations with the public, land have been made safe for cultivation and resettlement. private, and civil society sectors. CHAPTER 5 37 Did you know... Local ownership. New mechanisms, such as the compre- hensive strategy papers prepared by the countries them- That an estimated $1 trillion is selves, put countries in the driver's seat when it comes to paid in bribes each year around the world (imagine $1 trillion as a determining development priorities and the best means of pile of $100 bills that's 40 times addressing them. the height of Mt. Everest)? Good governance. Bank initiatives place a priority on The $1 trillion figure calculated by transparency, the free flow of information, the fight the World Bank Institute is a rough estimate of the extent of bribery against corruption (see sidebar, page 42), and ensuring --money paid from the private that citizens have a greater say on issues that affect them. sector to the public sector--in both developed and developing Results orientation. Specific indicators have been devel- countries. Although there is a large margin of error on such an estimate, oped to measure the extent to which a Bank project it reinforces that bribery is not a reaches its goal, including its contribution to achieving the relatively small phenomenon--far Millennium Development Goals. from it! The same research demonstrates Diversified, decentralized staffing. The Bank's staff that those countries that work to makeup is also changing. Whereas historically Bank staff eradicate corruption, by improving with economics and finance backgrounds predominated, their legal systems and the today they come from such diverse disciplines as health accountability of government offi- care, the environment, education, and anthropology. And cials, can increase their national incomes by as much as four times more staff are located within individual countries, rather over the long term. That's a lot than working from the Bank's Washington, D.C., head- more money that can be spent on quarters. In country offices, they are better able to under- the urgent needs of their citizens. stand and address local needs. Focus on children and youth. Recognizing the enormous role that young people can and do play in development, in 2002 the Bank established a Children and Youth Unit to guide its work in promoting effective development for this important group. Expansion of lending priorities. Reflecting all these changes, the Bank's lending priorities have changed-- they've diversified. For example, in 1970 infrastructure investments represented 58 percent of Bank lending and human development 4 percent, but in 2003 infrastructure loans accounted for 22 percent of Bank lending and human development 30 percent. In 2004, loans 38 HOW THE WORLD BANK IS CHANGING Total IBRD-IDA Lending by Sector, Total IBRD-IDA Lending by Theme, Fiscal 2004 Fiscal 2004 (share of total lending of $20.1 billion) (share of total lending of $20.1 billion) Urban Development 7% Economic Management 2% Water, Sanitation & Agriculture, Fishing & Flood Protection 8% Forestry 7% Trade & Integration 6% Environmental & Education 8% Natural Resource Social Protection & Management 6% Transportation Energy & Risk Management 19% Mining 5% 8% Financial & Social Finance 9% Private Sector Development, Development Gender & 20% Inclusion 8% Law & Justice Health & Other Human & Public Social Services 15% Rural Development Development Administration 25% 8% 15% Information & Public Sector Communication 1% Industry & Trade 4% Rule of Law 3% Governance 17% from the International Bank of Reconstruction and Development (IBRD) and the International Development Association (IDA) went to support 10 sectors of develop- ment (see figures above), many of which are part of a new definition of infrastructure that includes such vital compo- nents as transportation, information and communications, energy and mining, and water and sanitation. The Inspection Panel: Empowering Local Citizens to Speak Out Even though the Bank strives to ensure that its efforts to alle- viate poverty don't cause any harm in the process, occasion- ally an issue is overlooked or unforeseen consequences emerge. To increase transparency and accountability, the Bank established an Inspection Panel in 1993. This three- member body provides an independent forum for private citizens who believe they have been or could be adversely affected by a World Bank­financed project. The establishment of the panel provided, for the first time, a vehicle for private citizens, and especially poor people, to access directly the World Bank's highest governing body--the CHAPTER 5 39 10 Things You Never Knew about the World Bank The World Bank is ... the world's largest 2 international funder in the fight against HIV/AIDS The spread of HIV/AIDS is rapidly 1 the world's largest 4 reversing many of the social and international funder of economic gains that developing education countries have made over the past 50 years. As a sponsor of UNAIDS Education is essential to develop- (the group that coordinates the a strong supporter ment. The World Bank has commit- international response to the epi- of debt relief ted around $33 billion in loans and demic), the Bank in the past few credits for education, and currently years has committed more than Through the Heavily funds 157 projects in 83 countries. $1.6 billion to fight the spread of Indebted Poor Countries The Bank works closely with national HIV/AIDs around the world. It has (HIPC) Initiative, the governments, United Nations agen- also been one of the largest finan- Bank is engaged in a cies, donors, civil society organiza- cial supporters of HIV/AIDS pro- comprehensive effort to tions, and other partners to support grams in developing countries. The reduce the debts of the developing countries in their efforts Bank has promised that no country world's poorest, most to ensure that all children, especially with an effective HIV/AIDS strategy indebted countries. Today girls and disadvantaged children, are will go without funding. 27 countries are receiving enrolled in and able to complete a debt relief that will primary education. amount to $53 billion over the next 20 years. As part of the initiative, these countries are using a leader in the fight against corruption worldwide government funds freed 3 up by debt relief for Corruption is the single largest obstacle to development. It increases programs that wealth for a few at the expense of society as a whole, leaving the cut poverty. poor to suffer the harshest consequences by taking public resources away from those who need them most. Since 1996 the Bank has launched hundreds of anticorruption and good governance programs in nearly 100 developing countries. Initiatives range from teaching investigative reporting to journalists to requiring government offi- cials to publicly declare what they own and how much they earn. 5 one of the largest international funders of biodiversity projects Concern for the environment is central to the Bank's mission to reduce poverty. Since 1988 the Bank has demonstrated its concern by becom- ing one of the largest international sources of funding for biodiversity projects, protecting the world's wide variety of animals, plants, and other living things. Its environmental strategy focuses on climate change, forest preservation, water resources, pollution management, and biodiversity, among other issues. 40 HOW THE WORLD BANK IS CHANGING 8 involving civil society in a larger role in its work 7 Civil society organizations are not only influential in the international develop- 9 ment policy debate but funding projects to have also become impor- bring clean water, tant channels for the electricity, and delivery of social services helping countries that are and new development transportation to emerging from conflict programs. Civil society poor people involvement in projects The Bank is active in 40 countries emerging the Bank has funded has from violent conflict. It works with govern- Most people in the developed risen from 21 percent of all ment and nongovernment partners (local world take infrastructure for projects in 1990 to 72 per- and international) to aid citizens affected by granted, but it is a luxury only cent in 2003. The Bank war, to resume peaceful development, and dreamed of in many parts of also provides grants to to prevent violence from breaking out again. the world. Infrastructure is not these organizations in The work of the Bank deals with a range of simply about the construction war-torn communities, needs, from jump-starting the economy and of large projects--gas supplies social services, repairing and rebuilding war-damaged pipelines, irrigation canals, and supports community infrastructure to clearing landmines and water purification plants. It is development. targeting programs at vulnerable people also about the delivery of such as widows and children. basic services for everyday life, such as upgrading slums and providing roads to connect the poorest urban areas. responding to the voices of poor people Conversations with 60,000 poor people in 60 countries, as well working in partnership as the Bank's day-to-day work, have shown that poverty is about more than inadequate income. It's also about lack of freedom of more than ever before action, choice, and opportunity. The Bank's approach to reducing poverty puts poor people at the center of development and 10 During the past six years, the creates conditions that allow them to gain increasing control Bank has joined a wide range over their lives through better access to information and greater of partners in the interna- involvement in decision making. Today the Bank supports a tional fight against poverty. variety of community-driven projects with funding of more For example, with the Food than $2 billion. and Agriculture Organization (FAO) and the United Nations Development Programme (UNDP), it sponsors the Consultative Group on International Agricultural Research (CGIAR), which mobilizes cutting-edge sci- ence to reduce hunger and 6 poverty, improve human nutrition and health, and pro- tect the environment. CHAPTER 5 41 Combating Corruption: Working from the Ground Up in Indonesia As in many countries, corruption is deeply ingrained in the politics of Board of Executive Directors--and to seek redress for what Indonesia, where even government ministers talk openly to the press they perceive to be harmful consequences of a Bank project. about the problem. Corruption often Since the Inspection Panel was established, 27 formal Requests stems from the example set by a for Inspection have been received. The requests are publicly nation's top leadership.Transparency available at the panel's Web site: www.inspectionpanel.org. International estimates that former Indonesian President Suharto embezzled anywhere from $15 billion Through this panel, the Bank seeks to ensure that its poli- to $35 billion during his more than cies and procedures, which are intended to protect the 30 years in office. interests of those affected by its projects, are adhered to. So where do you begin to tackle an The Inspection Panel has also provided other international issue that is considered by many financial institutions with a model upon which to develop in society to be just "business as their own accountability mechanisms. usual"? In 2003 the Bank began an ambitious program in Indonesia to fight corruption from the ground up. The anticorruption campaign is capi- Changes at the Bank: Your Questions talizing on the nation's program to Answered transfer greater power from the central government to the country's Why has the World Bank made infrastructure a priority? more than 400 local governments. Infrastructure is crucial for the development of any country. Initial work has focused on improv- It is about delivering the essential services that people need to ing the financial management of local governments and inviting maintain a basic standard of living: water supply, sanitation, greater participation by civil society electricity, roads, and telecommunications, which in turn lead organizations and the public at to improvements in health, access to education, and expanded large. Areas of the government that economic opportunities. But for millions of people, these are committed to good governance and anticorruption initiatives will basic services are still beyond reach. receive more assistance from the Bank in terms of investment in infra- During the 1990s, the World Bank reduced its lending for infra- structure and health facilities. In all, structure with the expectation that private sector investment in the Bank aims to work with 50­60 infrastructure would increase. However, the high cost of such of the best-quality local governments. investments prevented the private sector from stepping in. It is hoped that the anticorruption initiative will encourage and Recognizing that infrastructure is a key element in a coun- strengthen a new generation of try's economic growth, which in turn greatly affects poverty political leaders to make their own reputations on improving gover- reduction, the Bank has begun to take on new infrastructure nance and stamping out corruption. projects. Like the rest of the development community, the Youth can and must be a part of this Bank realizes that infrastructure services are important to new generation. reach the Millennium Development Goals (see page 17). 42 HOW THE WORLD BANK IS CHANGING Does the Bank look at human rights in the countries it "The greatest limi- lends to? tations imposed on In a way, every project supported by the Bank is linked to people living with human rights: the right to clean drinking water and good sanitation, the right to health care, the right to an education, a disability often the right to work and adequately support a family. In many countries, the Bank is addressing the imbalances between the come from people number of boys and girls receiving an education and between in the rest of soci- the number of men and women having access to loans to start businesses. The World Bank's mission is not to agitate ety who equate politically for human rights or to determine what political being blind or deaf systems should be adopted in its client countries. Rather, its mission is to help the poorest people of the world, and the with some inherent Bank focuses on that. mental disability." Are there any World Bank projects that help people Mohammed Ali Loutfy with disabilities? Yes. Disabled people are a particularly vulnerable group. They are regularly shunned, isolated, and stigmatized by their families and communities. Many people in developing countries think that children with disabilities can't learn or develop skills, so they are kept from attending school or finding work. As a result, the disabled tend to be the poorest among the poor. People with disabilities must be helped to become A Junior Professional Associate at the World Bank, Mohammed Ali productive members of Loutfy lost his eyesight when he was seven, but that hasn't stopped society for their own him from striving to achieve the same things that sighted people take sakes and for the well- for granted. Currently he is working with the Disability and Development Team, empowering people with disabilities, especially being of the entire outfy L those in developing countries. community. Solutions Ali are often simple, such Mohammed knows all too well the challenges that those with disabili- as providing reading ties face. As a young boy growing up in Lebanon, he was often segre- gated from sighted children and discouraged at school from pursuing glasses or wheelchairs a university education. He persevered, however, and earned a law or constructing Mohammed degree from the University of Beirut in 2000. Now he is pursuing a wheelchair-accessible second advanced degree, in human rights law. "What sustains me in buildings. my life is making the most of opportunities all around me," says Profile: Mohammed, "refusing to ever give in to limitations put on by others." CHAPTER 5 43 Did you know... In addition, international organizations such as UNICEF, the World Health Organization, and the World Bank work to pre- That 80 percent of the earth's original forest cover no longer vent disabilities by: exists and that 30 percent of what does exist is either degraded or Improving health care in poor countries for pregnant fragmented? women and children Deforestation is only one of many Enabling disabled children to attend school and learn urgent global environmental prob- job skills lems. Recognizing that sustainable Removing landmines. development is not possible with- out protecting and preserving the How much importance does the World Bank give to the environment, the Bank has dra- environment in its lending programs? matically increased its global envi- ronmental initiatives. Currently about 13 percent ($13 billion) of the Bank's total Bank lending for environmental portfolio of projects have environmental and natural resource projects nearly doubled from 2003 management objectives (see sidebar). Of this, about 34 to 2004, from $1.1 billion to $2.1 bil- percent ($4.3 billion) are committed to pollution management lion. Lending for environmental and environmental health, 25 percent ($3.1 billion) to water and natural resource­oriented projects now accounts for 13 per- resources and management, 14 percent ($1.7 billion) to cent of the Bank's total portfolio. environmental policy and institutional development, and In addition, more than 80 percent 9 percent ($1.2 billion) to climate change initiatives. of all new Bank loans are subject to an Environmental Assessment, which examines potential environ- The Bank works with partners in the international community mental risks and benefits. A grow- to pursue its environmental goals and helps borrowing coun- ing emphasis on the environment tries address regional and global environmental objectives is also represented in the Bank's through the Global Environment Facility, an independent staff, which today includes more entity established to support international environmental than 100 environmental specialists, compared to 15 years ago, when agreements. In addition, the Bank is: there was just 1. The implementing agency of the Multilateral Fund for the Implementation of the Montreal Protocol, an international treaty to eliminate the production and consumption of ozone-depleting chemicals. Supporting the goal of the Kyoto Protocol to reduce greenhouse gases, which contribute to climate change, through various carbon finance initiatives (see http://carbonfinance.org). 44 HOW THE WORLD BANK IS CHANGING A Changing World Bank World Bank goals/strategies Year 1996 2005 Sharpen the development focus Expand the definition of poverty Economic programs Multidimensional programs Support country-developed Poverty Reduction Strategies 0 44 full and 12 interim Encourage creation of a Comprehensive Development Framework 0 In 50+ countries Increase anticorruption and governance work Few In 95+ countries Relocate staff closer and be more responsive to client needs Place more country directors in the field 0% 73% Increase regional staff in the field 28% 44% Reduce project preparation time 24 months 14 months Increase transparency and invite participation from other stakeholders Publish Country Assistance Strategies 0% 97% Involve civil society in projects Less than 50% 72% Increase value of community-driven elements in projects $700 million $2 billion Respond to postconflict needs and support debt relief Provide postconflict lending and advice 15 countries 40 countries and territories Institute debt relief operations (Heavily Indebted Poor Countries Initiative) 0 27 countries receiving debt relief and 18 countries at completion point Increase value of committed debt relief 0 Approximately $54 billion Measureoperationaleffectsandimproveresults Increase satisfactory project outcomes 69% 79% Reduce projects at risk 29% 15% Source: Adapted from an Issue Brief posted online on the Bank's Web site: http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:20040866~menuPK:34480~pagePK:34370~theSitePK:4607,00.html. Accessed May 2005. CHAPTER 5 45 Success Stories from around the World The World Bank's efforts to reduce poverty and foster develop- ment are as diverse as the people and landscapes in the more than 100 countries in which it works. In recent years, the Bank has helped to boost literacy rates in India, protect rain forests in Brazil, fight HIV/AIDS in Ethiopia, restore endangered ecosys- tems in Croatia, and empower villagers in Indonesia to design and implement their own community development projects. There are significant trends and issues within the six major World Bank­designated regions of the world, and within the specific projects under way in each region. As you read, take a moment to consider the similarities and differences between regions. For instance, the average person in Africa earns $490 per year and lives to be 46 years old. But the average Latin American earns $3,260 a year and can generally expect to live to the age of 71. Although differences abound, people's hopes-- for education, a decent livelihood, and access to clean water, health care, housing, and opportunity--remain the same. "Working for the Bank is not an easy prospect; not only because of the work that is being done but the scrutiny people impose on the Bank's work." David Bonnardeaux David Bonnardeaux is a Junior Professional Associate working on the Bank's aux Environment Team. Before assuming his current role, David admits to having been de conflicted about the Bank's role in development around the world. But after working on Bank projects, he now concludes that its principles are more aligned with the views of its critics than most people think. Bonnar vida "Time will tell," he says, "whether the Bank truly gives 100 percent to fulfilling all its D commitments--not only to global poverty alleviation but to the conservation of our natural assets and the globe's biodiversity. The fact that the environment is central to the Bank's relatively new mission statement is a step in the right direction, but greater strides will be required in the future. I am proud to be a part of such strides." Profile: CHAPTER 6 47 East Asia and the Pacific Not long ago, 45-year-old Wei Ming Rui, head of Nongxiang, an isolated village in southern China, would spend hours each week hauling water to his family. Now, with improved roads, water facilities, and access to credit, he is able to devote time to making chairs, which he then carts to the nearest town, where they sell for $1 each. Wei is one of thousands of rural Chinese citizens to benefit from the Southwest Poverty Reduction Project, which operated from 1995 to 2001. Nearly $500 million was earmarked for an astonishing range of projects that involved road construction, the funding of educational and health facilities, and village business enterprises. Most extraordinary of all was the heavy emphasis on public consultation, right down to the village level. This project provides a good illustration of some of the most pressing development challenges con- fronting East Asia and the Pacific: poverty, insuf- ficient infrastructure, rural isolation, and lack of education and employment opportunities. Surprisingly, while 40 percent of the region's inhabitants struggle to survive on $2 a day, they are part of the fastest-growing area in the world. To help promote the region's economic growth, the Bank's efforts focus on strengthening the business sector while empowering the poor, safeguarding the environment, and making government more transparent and accountable. 48 SUCCESS STORIES FROM AROUND THE WORLD Indonesia: Giving Villagers a Voice What Makes a Country Eligible for Borrowing "We used to be half-dead when we arrived in the morning at from the World Bank? our rice paddies. Now we get there in minutes," says one North Sulawesi villager. "Of course, it is at harvest time Countries are eligible for bor- when we reap the greatest benefits of the new road. Carrying rowing from the International Bank for Reconstruction and the rice while treading on the tiny zigzag path that was here Development (IBRD) on the before was an act of acrobatics and of endurance. Now we do basis of (a) their per capita it by motorcycle taxi in no time at all." gross national income (GNI) and (b) their creditworthiness. Countries are eligible for bor- In 28,000 villages across Indonesia, similar projects are rowing from the International being developed under the World Bank­funded Kecamatan Development Association (IDA) Development Project (KDP), a community-empowerment initia- on the basis of (a) relative tive. Villagers living in kecamatans, or subdistricts, receive grants poverty, figured on their per for projects they themselves choose. A village assembly meets capita GNI, and (b) their lack of creditworthiness. Some coun- and assesses the needs of the community, designs activities, tries are eligible for borrowing seeks technical help, and decides how best to use the limited from both the IBRD and IDA, resources. In addition, a notice board must be set up centrally in that is, they can receive a blend each village to show how the money is being spent and how the of funds. project is progressing--an effort to promote good governance. According to one Sulawesi East Asia and the Pacific Fast Facts women's group, the KDP has had a liberating effect on 1.9 billion Total population women, whose time and effort have been freed up by many of Number of countries eligible for World the village projects. According to 22 Bank borrowing another, the most important thing is that the KDP leaves the 69 years Life expectancy decision making to those affected by the project. 2 Percentage of young girls who cannot read or write Over the past four years, the KDP has built roads stretching $1,080 Average annual income per person (2003) over 19,000 kilometers and erected or rehabilitated some Number of people 3,500 bridges. It has constructed 2.3 million living with HIV/AIDS 5,200 irrigation systems to improve crop yields, and has $2.6 billion World Bank lending (2004) CHAPTER 6 49 supplied 2,800 communities with clean drinking water. For the children of these villages, the KDP has financed the con- struction of 285 new schools. China: Restoring the Loess Plateau Millions of poor farmers live in China's Loess Plateau region, a dry, remote area where incomes are significantly lower than in other parts of the country and where rates of population growth, illiteracy, and disease are all higher. Here, centuries of overuse of natural resources and unsus- tainable farming practices--combined with huge population pressures--have led to massive environmental degradation and widespread poverty. Indeed this region has the highest soil erosion rates in the world. Crop yields are dangerously low, and people subsist from year to year with no particular improvement in their standard of living. Together with the Chinese Ministry of Water Resources and local citizens, the World Bank formulated an approach that offers a sustainable solution, to end this vicious cycle. Erosion has been substantially reduced through massive reforestation efforts, the discontinuation of farming on steep slopes, and the building of "terraces" that hold soil in place during agricultural cultivation. Over a period of seven years, the project has lifted 1 million people out of poverty and has fundamentally improved the ecology of the region. The Loess Plateau Watershed Rehabilitation project is being hailed as a model for water conservation--a model that is increasingly being duplicated throughout China. This project is one of the largest and most successful erosion control pro- grams in the world. 50 SUCCESS STORIES FROM AROUND THE WORLD Europe and Central Asia Over the past 15 years, the 28 nations that make up the World Bank­designated Europe and Central Asia Region have under- gone dramatic economic, social, and political change. For many of the 480 million people in the region, the transition from a Communist form of government and a centralized economy to a democratic form of government and a market economy has been a long, and at times painful, journey. Yet there are signs that the situation is improving. All of the region's economies grew between 2002 and 2004, and civil society organizations have sprung up in an effort to address a variety of needs. Still, there are vast differences in the levels of poverty and human development throughout the region. For example, the average person in Slovenia earns $10,070 a year, whereas the average person in Tajikistan earns $200. While more than 50 percent of the population of many countries in the region is impoverished, in most countries of Central and Eastern Europe, less than 5 percent of the population is poor. Given this economic diversity, Bank assistance targets the needs All of the Europe of individual countries in the region. High-priority goals within those countries include: and Central Asia Region's economies Building a stable business climate Improving public sector governance grew between Empowering poor people in nations with traditions of limited citizen participation 2002 and 2004. CHAPTER 6 51 Europe and Central Asia Fast Facts Fighting diseases, including HIV/AIDS and tuberculosis Restoring the natural environment through reforestation 0.5 billion and clean-up programs Enhancing countries' international competitiveness through more-effective use of knowledge and technology. Total population Over the past 15 years, the Bank has committed $53.4 billion 27 to programs and projects in the region. Although the breakup of the Soviet Union and the resulting economic and social Number of countries eligible for transitions have been difficult for many countries, the mostly World Bank borrowing peaceful nature of the transition and the now-broad recovery offer hope for the future. Young people have the potential to 69 years be strong assets in the development of the region, contribut- ing to more stable and cohesive societies. Life expectancy Moldova: Helping Pennies Add Up for a Village School 1 Ten-year-old Valeriu Matran lives in Zberoaia, a small village in central Moldova, where winters are long, cold, and icy. Until Percentage of young girls who recently, Valeriu hated to go to school, especially during the cannot read or write winter, because classrooms were so cold that he had to remain bundled in his thick, warm, outdoor clothes while in class. $2,570 When this village of 2,000 inhabitants decided to repair the Average annual income per school and improve its heating system, with the support of person (2003) the World Bank­financed Moldova Social Investment Fund, 1.3 million Valeriu contributed his modest savings to a villagewide campaign. Number of people living with HIV/AIDS By dropping his pennies into the communal collection box, Valeriu $3.6 billion not only contributed to the cam- paign but also illustrated its name: "A Penny for My School." World Bank lending (2004) Two years have passed since repairs were completed, and the school is revitalized. Because additional classrooms were built, all 310 students can now go to school in one morning shift. The rooms are bright and warm, yet heating costs only $800, com- 52 SUCCESS STORIES FROM AROUND THE WORLD pared to $7,000 in previous winters. Funds were also used to buy new school furniture and supplies, including new textbooks. Moreover, the school has evolved into a true community center whose different activities attract inhabitants of all ages, includ- ing both Valeriu and his grandmother, who is raising him. Croatia: Restoring a Marine Ecosystem For decades, heavy industry and inadequate sewage facilities polluted the picturesque Kastela and Trogir Bays on the Croatian coast, threatening to turn a historic tourist area into an environmental hot spot. The past 50 years witnessed scenic villages dotting the coastline devolve into wastelands as industrial complexes--including a chemical plant, cement mill, iron mill, and shipyard--rose to dominate the landscape. Houses and trees were coated with soot, the blue Adriatic Sea turned dark gray, and pollutants discharged into the water decimated marine life. Local kids, like 12-year-olds Luka and Duje, still spend their summers hanging out on these beaches, but they can't believe that once, not so long ago, the coastline was pristine and the sea did not give off a foul odor. At the request of the Croatian gov- ernment in 1998, the World Bank provided $36.6 million for a project to reduce wastewater discharges into the bay and to improve the delivery of drinking water. The EKO Kastela Bay project is restoring beaches along the coastline between Split and Trogir, two ancient Roman towns on the UNESCO list of World Heritage sites. The project is building underwater tunnels that will first clean sewage water and then pump it out farther into the open sea. The main tunnel is designed to restore the bay's ecological balance. Luka, Duje, and their friends have been following the project with great interest. They are in awe of both the big machines that clean the water and the idea that the beaches once again will look, and the ocean smell, just like they did when their CHAPTER 6 53 grandparents were young. Latin America and the Caribbean For more than half of his 34 years, Pedro de Jesus Almeida lived as though he were in the 19th century. Having a good year in his corner of northeast Brazil meant scraping enough from the sun-parched soil to feed his family. "We didn't have anything," he recalls. In the mid-1990s, however, things started to change when gov- ernment officials and World Bank economists hit on a new idea for fighting poverty in the region. Their strategy: Ask Almeida and thousands of other northeastern villagers what they needed to improve their lives. In response, electricity, residential water service, and agricultural machinery have arrived one after the other over the past 10 years. Engaging the poor to solve their own problems is critically important to the Bank's efforts to reduce poverty in Latin America and the Caribbean, where sluggish economic growth, and deep recessions in several countries, continue to hamper development efforts. Achieving the Millennium Development Goals by 2015 will require new investments in health and basic education, as well as in infrastructure and environmental protection. To help meet environmental needs alone, the Bank is actively supporting more than 80 environmental projects totaling $2.3 billion. With more than half the region's population under the age of 24, creating a better future 54 SUCCESS STORIES FROM AROUND THE WORLD means paying particular attention to the needs of young people. Existing educational systems are failing to equip them with the Did you know... knowledge and skills necessary to succeed in a fast-changing, That high-income countries, with increasingly technology-driven marketplace. By increasing only 15 percent of the world's pop- access to learning and improving the quality of that education, ulation, produce more than 50 per- the Bank is working to bridge the "knowledge and technology" cent of the global emissions of car- gap. bon dioxide--the most important contributor to global warming? Brazil: Protecting the Amazon Rain Forests The earth's climate has warmed by about half a degree Celsius this What started as an effort to contain damage within one area of century, and much scien- the Brazilian Amazon is now emerging as a blueprint for pro- tific evidence suggests tection of the entire Amazon region. that human activities have contributed to The agricultural state of Mato Grosso, which spans almost 91 this. The burning of coal,oil,and natural million hectares and is home to 2.5 million people (and growing gas and the cutting rapidly), has accounted for the greatest amount of deforesta- of forests are chang- tion over the years. The causes are illegal clearing, forest fires, ing the atmospheric and improper land use. During 1999, for example, 40 percent of concentration of green- house gases and altering the deforestation within the Amazon region took place here. our planet's climate, with far-reaching consequences. In response to the problem, the Natural Resources Policy Source: 2003 World Bank Atlas Project (NRPP) supported the state with the development of a satellite-based environmental monitoring and control system. It has improved the effectiveness of surveillance, licensing, and monitoring to such an extent that deforestation has been reduced by one-third in Mato Grosso since 1998. The NRPP is part of the Pilot Program to Conserve the Brazilian Rain Forest, a partnership between the Brazilian government, civil society, international donors, and the World Bank. Because of the success in Mato Grosso, the Brazilian CHAPTER 6 55 Latin America and the Ministry of Environment decided to expand the program to Caribbean Fast Facts cover the "Arc of Deforestation"--priority areas in three states in the Amazon. The licensing of rural properties will 0.5 billion begin in 43 municipalities in the states of Mato Grosso, Pará, and Rondônia, all of which accounted for 60 percent of total Total population deforestation in the Amazon between 1997 and 1999. In 2002 the World Bank joined with the World Wildlife Fund 30 and the Brazilian government to launch the Amazon Region Protected Areas Program, a 10-year initiative that will triple Number of countries eligible for World Bank borrowing the amount of Amazonian rain forest under protection. Peru: Connecting Isolated Villages to Markets 71 years "Before, we had to walk four or five hours each way to go to Life expectancy the market in Cuzco. Now it is one hour by bus," says Julia Juana Viuda de Guamán, a widow and the sole provider for her six children, who lives in the village of Ccorca in central Peru. 5 A small town of about 700 poor families, Ccorca is located Percentage of young girls who cannot read or write high atop the Andes Mountains. To give local residents access to markets and basic services, such as education and health $3,260 care, the Peruvian government joined with the World Bank, civil society organizations, and the Inter-American Average annual income per Development Bank to create the Peru Rural Roads Program. person (2003) As a result of this initiative, the 20 kilometers between Cuzco and Ccorca can now be covered in just one-tenth of 2.1 million the time it took on the old roads. Number of people living In addition to buying food, medicine, and clothing in the with HIV/AIDS town, and selling their own products in the market, the people of Julia Juana's village are now going to Cuzco for part-time $5.3 billion jobs in the city's buoyant tourist industry, which benefits from its proximity to Macchu Picchu, the ruins of a city built World Bank lending (2004) at the height of the Inca Empire. Ccorca is not the only indigenous village in the area to benefit from a new road and greater access to basic services. Around 3 million people in the Andean region are reaping the benefits of the expansion and rehabilitation of some 13,000 kilometers 56 SUCCESS STORIES FROM AROUND THE WORLD of rural roads and highways. Middle East and North Africa Unemployment and the lack of access to credit are two major challenges facing the poor in the Middle East and North Africa. In some countries, nearly a third of those eligible to work are without jobs, and the unemployment rate in the West Bank and Gaza is now estimated at more than half. Given the current high rates of population growth, the region will need to create about 4 million jobs a year to accommo- date new entrants into the labor force. To stimulate economic growth and create jobs, which in turn help stabilize the political situation, the Bank is working to strengthen the business sector and equip young people with the knowledge and skills to participate in the global economy. Other priorities include enhancing water management sys- tems and improving public sector efficiency. Yemen: Reaching Out to the Most Distant Students On the streets of Sana'a, Republic of Yemen, young Ahmad used to spend his days begging. Since last year, however, when he moved to the Safe Childhood Center--a residence for street children under 14--he has had a home. Ahmad is now attending elementary school, and school officials say he has grown cheerful and more sociable. The Safe Childhood Center is just one of a host of new organiza- tions benefiting from the Social Fund for Development (SFD), a Yemeni development agency established in 1997 with support from the World Bank, bilateral donors, and the government of CHAPTER 6 57 Middle East and North Africa Fast Facts Yemen. In one of the poorest countries in the world, the SFD 0.3 billion Total population aims to improve access to basic services and to support income 11 Number of countries eligible for World generation through loans to poor Bank borrowing entrepreneurs and access to sav- ings services (together called 69 years Life expectancy microfinance). 18 Percentage of young girls who cannot With more than 50 percent of its read or write budget dedicated to education, the SFD is making good progress in $2,210 Average annual income per person (2003) delivering basic education to even the most remote corners of the 0.1 million Number of people country. Primary school enroll- living with HIV/AIDS ment has increased from 61 to 67 percent, and the government has $1.1 billion World Bank lending (2004) set a goal of universal enrollment by 2015, with a particular focus on the number of girls in school, whose enrollment numbers are far behind those of boys. 518 water projects Promoting access to safe water and health serv- are providing ices is also a project priority, accounting for 24 percent of SFD funding: 518 water projects are clean water to 1.4 providing clean water to 1.4 million Yemenis for the first time. New health care projects--focused million Yemenis for on involving local communities in managing and maintaining health care facilities--are serving hundreds of thousands more. the first time. In addition to jobs created through the expan- sion of social services, the SFD is creating opportunities through microfinance projects, which in the past five years have extended loans to more than 17,000 bor- rowers, many of them women. 58 SUCCESS STORIES FROM AROUND THE WORLD Gaza: Water and Sanitation Services Before the Oslo Accords of 1995, signed by the Palestine Liberation Organization and the government of Israel, water and sanitation services in the Gaza strip were suffering. Access to clean water was limited, and old leaky pipes meant massive water losses that Palestinians could simply not afford. As a result, water was relatively scarce and costly. In Did you know... one of the most densely populated areas in the world, the need for a dependable water supply was vital. That by the year 2025, 4 billion peo- ple--half of the world's population-- will live under conditions of severe The World Bank and other donors joined with the Palestinian water stress? Hardest hit will be Water Authority to launch the Gaza Water and Sanitation nations in Africa, the Middle East, Services Project. The project targeted the efficiency of the and South Asia. water distribution system, the quality of the water supply, Compounding the problem of water and wastewater treatment. scarcity is the deterioration of water quality in most developing coun- "If our treatment plant had not been renovated, we could tries. To help boost cooperation not have met the needs of our residents, and before long, between countries on water-related our water services would have simply collapsed," explains issues, the Bank supports a series of regional water resources and envi- Hazim Tarazi, director of the Water and Wastewater ronmental programs that focus on Department of the Palestinian Water Authority. "With this shared water management. These project, we've built the foundation for future efficiency, with include programs in the Baltic Sea, transparent rules and a solid infrastructure for one of our Black Sea, Danube River Basin, and Nile River Basin. most precious resources." Providing safe water for more than 1.2 million residents required significant repairs, which increased water availability by 69 percent by mid-2002. More than 1,260 kilometers of pipe were surveyed and more than 50,000 water meters repaired or replaced. In addition, some 22,000 household service connections were replaced. In 1996 only 50 percent of the water supply was treated, but now 96 percent of the supply is safe for drinking. CHAPTER 6 59 South Asia M. Ramaiah, a 55-year-old farmer and father of three, finally has an inexpensive, readily accessible means of proving that he owns a small plot of land near Ittamadu, a village in south central India. That proof is in the form of a computer print- out he can now obtain in minutes through a new electronic record-keeping system. This may sound like a small thing, but proof of ownership is critical if he needs to apply for loans and to ensure that his land isn't taken over unlawfully-- something that is not uncommon in his region. Not long ago, such land records would have taken weeks, or months, to obtain through village accountants, who often had to be bribed to produce the documents. Now, through the Karnataka Information Technology Project--a joint venture of the state government of Karnataka, the Indian Federal Government, and the World Bank--more than 20 million land records for 6.7 million farmers have been computerized. The introduction of technology and this project have given local farmers a new measure of security and peace of mind. Leveraging the power of technology and linking the poor to opportunity are key aims of the Bank's work in South Asia, which is one of the most disadvantaged areas of the world. More than a third of its 1.4 billion people live on less than $1 a day, and nearly half of the adult population can neither read nor write. The Bank's work in the region focuses on reducing poverty, strengthening the private sector, improving governance, com- 60 SUCCESS STORIES FROM AROUND THE WORLD South Asia Fast Facts bating HIV/AIDS, and ensuring sustainable management of the environment. A priority is enabling the poor to secure a 1.4 billion decent livelihood and to remove constraints that exclude peo- ple from participating in, and benefiting from, development. Total population India: How Bollywood Music Videos Are Boosting Literacy Until recently, Yashodaben Cholanski from Gujarat, India, 8 was unable to read newspapers or fill out simple forms to Number of countries eligible for receive government assistance and access other services. World Bank borrowing With the help of a program known as Same Language Subtitling (SLS) for Mass Literacy, Yashodaben is learning 63 years basic reading skills in her native language of Hindi by watch- ing televised "Bollywood" music videos. (Bollywood is the informal name given to the popular film industry based in Life expectancy Mumbai, India.) Using subtitling technology, the program is helping Yashodaben improve her reading skills by letting her 38 both listen to and read the words of her favorite songs. Percentage of young girls who The lyrics of songs are perfectly synchronized with Hindi cannot read or write subtitles, so when the lyrics change, so do the colors of the written words. This simple but powerful technique builds on $510 people's knowledge of the lyrics, enabling partially literate people to anticipate the subtitles and read along. Average annual income per person (2003) The Indian Institute of Management collaborated with Doordarshan, India's state broadcasting agency, and the 5.2 million Indian Space Research Organization to provide Hindi subti- Number of people living tles on Chitrahaar, a nationally televised music video pro- with HIV/AIDS gram, in August 2002. $3.4 billion Now, the SLS version of Chitrahaar is 90 percent more pop- ular than the traditional nonsubtitled version, and World Bank lending (2004) Chitrahaar's overall ratings have increased by 18 percent since subtitling was added. In 2002 SLS was awarded a $250,000 grant after competing in the World Bank's Development Marketplace. The Development Marketplace is a grant program that provides CHAPTER 6 61 initial funding for resourceful ideas and encourages partner- ships between civil society groups, businesses, development banks, and governments (see page 74). There is now a demand for SLS to be replicated in other Indian states, on national television programs, and in other languages. Bangladesh: Fostering Good Nutrition Malnutrition levels in Bangladesh remain the highest in the world, providing the starkest evidence of the barriers to its economic and social development. Nearly 700 children die of malnutrition-related causes in Bangladesh every day. Among those who survive, nearly 60 percent are seriously under- weight, which reduces their intelligence and compromises their health. Malnutrition costs the country roughly $1 billion per year in treatment expenses and lost productivity. In 1995 the government launched the Bangladesh Integrated Nutrition Project (BINP) with support from UNICEF (United Nations Children's Fund) and a $59.8 million credit from the World Bank. It is one of the largest nutrition programs of its kind operating in the developing world today. By the end of 2001, the project had reached more than 3 million house- holds in over 13,000 villages across Bangladesh, providing such services as child growth monitoring and food supple- mentation for those most at risk, such as children under the age of two and women who are breast-feeding or pregnant. In 2000 the World Bank approved another $92 million for a broader-reaching National Nutrition Program. This new initiative seeks to ensure that diverse and nutritious food is provided to a group comprising nearly one-third of the Bangladeshi population. The BINP project has been success- ful in feeding and restoring the health of over 1.2 million teenage girls, 191,000 lactating women, 158,000 pregnant mothers, and 718,000 children under two years of age. 62 SUCCESS STORIES FROM AROUND THE WORLD Sub-Saharan Africa The World Bank's mission in Africa is one of hope. In addi- tion to providing debt relief to the poorest African countries, the Bank is working to stem the HIV/AIDS pandemic, spur business development, empower communities, and help countries prevent and recover from violent conflict. Sub-Saharan Africa has made important gains in recent years: literacy rates have increased and access to new information technologies is expanding. However, the challenges facing the region are enormous. Half of the population lives on less than $1 a day (or $365 a year). Half lack access to safe, clean drinking water. And only about a quarter (one in four) of poor rural girls attend primary school. But the greatest threat to Africa's future is the HIV/AIDS crisis. More than 70 percent of all cases worldwide are found in Africa, with 25.2 million Africans now infected with the disease. Sub-Saharan Africa has made important gains in recent years: literacy rates have increased and access to new information technologies is expanding. CHAPTER 6 63 "Working with the World Bank has taught me a lot about my country's development situation...and has helped me see the responsibility we [young people] have in building a brighter future." Woubedle Alemayehu The Bank is currently the largest provider of development assistance to Africa and the region's leading financier of HIV/AIDS programs. Areas of high priority include infra- structure, agriculture, health, nutrition, population control, education, community-driven development, and trade promo- tion within the region. Ethiopia: Young People Tackle the HIV/AIDS Crisis In the summer of 2003, 16-year-old Woubedle Alemayehu was selected, along with 21 other Ethiopian high school students, to participate in a five-day World Bank orientation "camp" organized by the Ethiopian Country Office. Woubedle and her fellow Sub-Saharan Africa Fast Facts students visited Bank-funded projects, including a program serving those 0.7 billion Total population with AIDS. "The visit to the AIDS patients had a very big impact on all of 47 Number of countries eligible for World us," recalls Woubedle, now 18. Bank borrowing 46 years With the Bank's support, Woubedle Life expectancy and the other group members set out to assess youth participation in 23 Percentage of young girls who cannot HIV/AIDS prevention efforts in three read or write regions of Ethiopia. The group inter- $490 Average annual income per viewed representatives of youth asso- person (2003) ciations, civil society organizations, and government, and talked with 25.2 million Number of people living with HIV/AIDS HIV/AIDS patients. They organized a panel discussion involving Bank staff $4.1 billion World Bank lending and key local stakeholders to discuss (2004) their findings and potential solutions. 64 SUCCESS STORIES FROM AROUND THE WORLD What resulted was a comprehensive project aimed at providing the nation's youth with information about the disease, how to design and implement HIV/AIDS prevention programs, and where to go for funding. Says Woubedle, "The most important thing I have learned from all of this is that each and every one of us can make a difference." But Woubedle learned much more. She learned that she wanted to be a doctor and has enrolled in medical school. Africa's Virtual University More than half of Africa's 700 million people are under 20 years old. It's no surprise then that demand for college-level education is so enormous that many high school graduates are unable to find places in local universities. Taking advantage of the latest technology, the World Bank helped to set up the African Virtual University (AVU), an interactive instructional telecommunications network established to serve the countries of Africa. The AVU uses the power of telecommunications technology to provide world-class educa- tion and training programs to students and professionals. Originally started as a World Bank project, the AVU has been transformed into an independent intergovernmental organiza- tion based in Nairobi, Kenya, with 34 learning centers in 17 African countries. The World Bank continues to be its largest backer, with commitments of $13 million over three years. So far, the AVU has created a network of partner institutions across Africa, with learning centers hosted mainly in public uni- versities. It launched an accredited degree and diploma in com- puter science. The semester-long courses are delivered to stu- dents at African universities through satellite broadcasting via the Internet. More than 23,000 students are registered in its courses, and close to 2,500 professionals are enrolled in execu- tive business seminars. CHAPTER 6 65 The Future: Youth and the World Bank Listening to Youth Voices Imagine a room filled with more than 120 Brazilian youth In 2002 the Bank launched its first offering their recommendations to national government Youth Voices project, in Peru (see officials for dealing with issues ranging from poverty and page 72). Youth Voices members, education to unemployment and violence. As unusual as selected through an application such a gathering may sound, this is exactly what happened process, volunteer their time at the Bank's country offices and in June 2004. The policy recommendations put forth by have the opportunity to research, these young Brazilians were incorporated into a special report advise, and comment on a range presented to Brazil's president and to be included in the of national development issues. country's agenda for young people. Among those countries with Youth Voices groups are: Such a unique meeting came about, in part, through the Bosnia Kosovo World Bank's efforts in Brazil to solicit youth opinions on the Brazil Macedonia nation's development priorities. Months earlier, a diverse Egypt Moldova group of young Brazilians came together to form Vozes Ethiopia Turkey Kenya Yemen. Jovens (Youth Voices). It is one of what are now more than A member of the Brazil Youth Voices team, Renata Florentino "A country that does tos de Faria Santos had never before worked with a large multilater- not invest in its San al institution. After graduating from Brasilia University with a degree in sociology, she assumed her current role as Youth people will never be aria F Policy Coordinator for the Interagir Group, a youth-led grass- roots organization. But Renata soon had a chance to work with developed." de the World Bank. Interagir was one of more than 120 youth Renata Florentino tino groups to advise the Bank on the development of Brazil's de Faria Santos en Country Assistance Strategy (which defines the development action plan for a country based on analysis of needs and close Flor collaboration with all partners, especially within the country). ta ena Although some people feel such agencies "are not close enough R to reality, my experience showed otherwise," says Renata. She applauds the Bank's effort in Brazil to convene a diverse cross- section of young leaders to discuss and debate youth issues as Profile: they relate to the development of the nation's Country Assistance Strategy. "The experience showed me how we can deal with diversity in a very democratic way, respecting all differences and considering it as an advantage, not as a negative thing." CHAPTER 7 67 20 such national-level groups worldwide that serve as infor- mal advisers to the Bank on their countries' development concerns and priorities. The Bank is asking young people around the globe for their insights into and perspectives on a range of issues--from efforts to enhance educational opportu- nities for Egyptian youth to ways of preventing conflict in East Timor. The Bank has recently intensified its focus on children and youth. An important first step for the institution is to listen to young people, so that it can understand what issues are impor- tant to them and what strategies they feel are best suited to meeting their needs. The Bank is taking the next step, to inte- grate youth perspectives more fully into its work. And it plans to expand youth involvement in the future. The World Bank and Youth: Working Together to Combat Poverty What young people bring What the Bank brings A fresh perspective on development A willingness to listen and learn issues derived from hands-on experience A long-term commitment A long-term commitment The ability to conduct research across a Resources, ideas, and abilities wide range of development issues (e.g., education, health, employment) Enthusiasm for development and a willingness to participate and contribute Past experience and existing Bank proj- ects and activities that help children and Organizations and networks with global youth (e.g., to access education and reach and knowledge obtain jobs) An understanding of grassroots realities The ability to combine financing with a and access to local communities plan established in collaboration with Energy to build more inclusive, responsive, developing countries and effective public policies and program Influence at both the international and strategies. national levels Opportunities to build capacity. 68 THE FUTURE: YOUTH AND THE WORLD BANK Shaping a New Agenda on Children and Youth The story of how Brazil's youth came to actively contribute to the nation's development plan is part of a larger story unfolding around the world as the Bank shapes and refines its work with and for young people. A milestone in these efforts was the Youth, Development, and Peace (YDP) Conference held in Paris in September 2003. A second A Framework for Action conference was held in Sarajevo in September 2004. The two events brought together Bank staff and hundreds of young Working in close association with people from more than 80 countries to develop plans for youth and international partners, the working together in the future. World Bank's Children and Youth Unit has developed a "Children and Youth Framework for Action" to The Paris and Sarajevo YDP conferences took place against a guide the Bank's work for and with backdrop of growing Bank involvement in youth issues at the young people. In drafting the frame- national and regional levels. For decades the Bank has made sig- work, the Bank conducted interviews, nificant contributions to improving the lives of young people in focus groups, online dialogues, and videoconferences with hundreds of such areas as health and education, but the urgency of the issues young people around the world. youth are faced with, the increasing demands from government What emerged from these discussions, for support in addressing them, and the necessity of reaching the as well as from consultations with a Millennium Development Goals prompted Bank leadership and wide range of experts on children staff to increase efforts to address the needs of young people. and youth, was the necessity of mobilizing diverse sectors of society to meet young people's needs. Also To help coordinate these efforts, the Bank created a Children found important was looking at and Youth Unit in 2002. The unit's main objectives are to: individual issues--such as the number of school dropouts within a given country--within the larger context Promote greater knowledge of children and youth issues of other development concerns, such within and outside the Bank as poverty and unemployment. Support children- and youth-focused operations across the Bank, based on evidence and best practice Facilitate the involvement of youth in Bank operations and projects Foster partnerships with outside organizations. The unit actively supports the engagement of young people in the Bank's efforts to address their needs. Working together on priorities and strategies, youth and the Bank can make a difference. CHAPTER 7 69 The Life Cycle Approach The Framework for Action is based on a life cycle approach to addressing young people's needs. Such an approach looks at the needs of children and youth at different ages, or vari- ous stages in their development, and helps World Bank staff in its client countries establish priorities for how and where to focus limited resources. For example, in lower-income coun- tries, such an approach might translate into greater investments in nutrition and other health measures aimed at keeping children alive. The life cycle approach emphasizes the involvement of families and communities in pro- moting children's well-being. Countries need effective policies and institutions to ensure that young people have access to education, health care, and other essential services. Also important is making sure that young people themselves have influence over the decisions that affect their lives. FAMILIES AND COMMUNITIES Primary health care and nutrition Birth Protection 7 days 28 days Death POLICIES AND Aging 1 year SAFE, HEALTHY OPERATIONAL TOOLS HABITAT Adulthood Lifelong learning 20 years 5 years Early childhood 10 years development Healthy behaviors Secondary and Primary education tertiary education PARTICIPATION 70 THE FUTURE: YOUTH AND THE WORLD BANK Engaging Young People as Partners To date, the World Bank has launched dozens of youth initia- tives in every region of the world in which it operates. These programs actively engage young people in identifying issues and proposing solutions to urgent development challenges. In some of the Bank's country offices, young people are involved in day-to-day operations, and in others, they have contributed to their countries' national development plans and Poverty Reduction Strategies. Here are some examples: In Moldova, members of the Youth Voices group, an informal advisory committee to the Bank's country office, provided valuable input into the development of that nation's Country Assistance Strategy, as well as assistance with HIV/AIDS initiatives and efforts to rehabilitate schools. Young Roma (23­34 years old) from eight countries in Central and Eastern Europe traveled to Washington, D.C., to meet with the Bank's president and staff, local civil society organizations, and government leaders. The visit was part of a larger Bank initiative to strengthen the skills of young Roma leaders and to provide a platform for their voices to be heard. In Ethiopia, young people are actively involved in the Bank's efforts, in conjunc- tion with government authorities, to develop and implement HIV/AIDS poli- cies and programs. And in Nepal, 18- to 20-year-olds attend- ed a series of workshops and a national conference aimed at obtaining their insights into and perspectives on current development needs and priorities. CHAPTER 7 71 These experiences have reinforced the tremendous value of including young people in the development dialogue. Peruvian Youth as Partners for Change Nuevas Voces is a three-year-old initiative of the Bank's country office in Peru that invites some dozen young people, already active in their communities, to spend time at the office to learn, research, advise, and comment on the Bank's work. Participants are selected from a large pool of candi- dates initially nominated by their youth groups, schools, churches, or other community organizations. The criteria include their willingness to learn about development and create a plan that their sponsoring organization can later put into action. It's a win-win situation. These socially conscious activists receive hands-on experience in development, and the Bank receives their valuable perspectives on its work. "I under- stand better the role the World Bank plays in countries like mine, as well as the role of the government and civil society," says Natalia Toledo, who participated in the Nuevas Voces opportunity. Following a brief introduction to development, the Bank, and its country programs, students get to work on a project of their choice. One recent project engaged youth in preparing a study on how to improve educational curricula and policy. Participants also visited existing Bank projects in Peru and offered their opinions on how the projects were prepared, carried out, and reviewed. "I was amazed by the amount of information and knowledge the Bank manages," recalls Natalia. "I knew it was one of the institutions that generates the most research on develop- ment, but I really didn't know its scope and breadth, or how to use and approach it." 72 THE FUTURE: YOUTH AND THE WORLD BANK "At a time when we are in a race to attain the Millennium Development Goals--and achieve a new balance between rich and poor nations-- the need for creative ideas and uncommon partnerships is ever greater." James D. Wolfensohn, World Bank President, Development Marketplace 2003 Bank Funding Opportunities Although the vast majority of Bank funds are distributed in the form of loans to governments, limited grant funds are available to youth organizations and individuals through the Small Grants Program and the Development Marketplace. Small Grants Program Created in 1983, the Small Grants Program is one of the few global programs of the World Bank that directly fund civil society organizations. Administered through the Bank's coun- try offices, the program supports activities of civil society organizations whose primary objective is civic engagement of the poor and marginalized populations. By involving citizens who are often excluded from the public arena, and by increasing their capacity to influence policy and program decisions, the Small Grants Program helps facilitate owner- ship of development initiatives by a broader sector of society. Grants are awarded once a year and generally range from $3,000 to $7,000, with a maximum of $15,000. Contact the local World Bank country office to see if the program is offered. For further information, visit: www.worldbank.org/smallgrantsprogram. CHAPTER 7 73 Development Marketplace Recognizing that the most innovative means of addressing development challenges often start small--in the minds and hearts of those living closest to local problems--the World Bank offers opportunities for social entrepreneurs to test their brilliant but unusual ideas. First launched in 1998, the Development Marketplace provides monetary awards to grass- roots visionaries with poverty-fighting proposals. The global competition (held every 12­18 months), as well as country-level and regional Development Marketplaces, is open to anyone: civil society groups, youth organizations, private foundations, academia, and private sector corporations. It encourages creative thinking, risk taking, teamwork, and dialogue between diverse players engaged in devel- opment initiatives. The awards not only recognize innovation but also encourage creative partnerships between civil society, business, development banking, and government. Over the past seven years, more than 1,000 groundbreaking projects in over 70 countries have received Development Marketplace awards totaling nearly $40 million. Recent win- ning concepts included protecting farms in Zimbabwe from elephant incursions by plant- ing chili peppers, recycling discarded plastic into usable objects in Burkina Faso, using dis- carded car tires to reinforce walls in earthquake-prone Turkey, and developing fly-fishing eco-tourism in Mongolia. Development Marketplace 2005, whose theme is "Innovations for Livelihoods in a Sustainable Environment," received more than 2,600 proposals. These were reviewed by 150 environmental experts both within and outside the World Bank, and 78 finalists were chosen for projects that ranged from natural tsunami control in the Philippines to making wood briquettes from sawdust in Azerbaijan. Project representatives presented their ideas to the jury and the general public at the end of May in Washington, D.C., at Bank head- quarters. Thirty-one innovators won almost $4 million, with a maximum grant of $150,000 per proposal. 74 THE FUTURE: YOUTH AND THE WORLD BANK Collaborating with Other Organizations Given the enormous amount of work to be done to improve the lives of young people around the world, the Bank must work in partnership with organizations at the local, national, regional, and international (bilateral and multilateral) levels to maximize the collective resources, networks, and expertise available. Key partners in the Bank's efforts to engage youth and better meet their needs include: United Nations System (e.g., UNICEF, U.N. Focal Point for Youth, United Nations Development Programme, UNAIDS, and United Nations Fund for Population Activities) Youth organizations (e.g., International Federation of Red Cross and Red Crescent Societies, World Association of Girl Guides and Girl Scouts, World Organization of Scouts Movement, and several regional Youth Platforms) Regional development banks (e.g., Inter-American Development Bank) Nongovernmental organizations (e.g., Save the Children, Plan International) Bilateral agencies (e.g., GTZ--German Technical Cooperation, U.S. Agency for International Development, Canadian International Development Agency). These organizations have played vital roles in the Bank's efforts to convene diverse groups of young people and strengthen net- working and information sharing among them. The future promises continued alliances in pursuit of a common mission to enhance young people's well-being and ability to contribute to their communities as active citizens. CHAPTER 7 75 How Young People Can Get Involved in the Bank's Work A variety of ways exist for young people to become involved in the work of the World Bank, and to have their voices heard concerning Bank projects and initiatives. Brief descriptions of these opportunities follow. The Bank also sponsors a Web site that features issues of particular interest to young people. Visit the site at: http://youthink.worldbank.org/. The New Voices in Development ini- tiative enables young people, as young as teenagers, and their organizations to con- nect with one another and share ideas to increase program impact. New Voices teams are working with Bank country offices in various parts of the world. Plans are under way to give participants an opportunity to travel to country offices outside their own nations to see the simi- larities and differences in what other country offices do and how they do it. (For further information, see page 72.) The Bank's Internship Program offers graduate and Ph.D. students the opportu- nity to improve their skills as well as gain the experience of working in an interna- tional environment. Candidates are typically pursuing fields related to economics, finance, human development, social science, agriculture, the environment, or private sector development. The Junior Professional Associates program provides recent graduates (up to age 28) with entry-level work expe- rience and first-hand exposure to the challenges of devel- opment and poverty alleviation. The two-year program is 76 THE FUTURE: YOUTH AND THE WORLD BANK designed to be used as a stepping-stone to a career in gov- ernment, consulting, the private sector, or academia. The Young Professionals Program attracts individuals up to age 32 who have demonstrated a commitment to development that is supported by academic success, professional achievement, and leadership potential. The program recruits through a highly selective and competi- tive process. The Graduate Scholarship Program is open to students pursuing a master's degree in a field related to develop- ment. It covers associated costs for up to two years. Students must attend a university outside their home country, be under the age of 45, and have at least two years of professional experience. The Youth to Youth (Y2Y) Community is a network of young professionals in the World Bank whose purpose is to exchange and channel ideas related to Bank work and strate- gies, as well as to reach out to external organizations work- ing with youth. Membership is not limited by age. Y2Y welcomes individuals of all ages who are committed to development issues that affect youth globally and who believe in integrating youth issues into all development work. For information, visit www.worldbank.org/y2ycommunity. The Youth, Development, and Peace (YDP) Network formally facilitates youth participation in the development process. Young people from all over the world are looking to the World Bank to develop and implement capacity- building and knowledge-sharing partnership programs for youth organizations. During the YDP conferences in Paris (2003) and Sarajevo (2004), participants proposed the creation of an informal youth-led network, the Youth, Development, and Peace Network. On November 30, 2004, the following mission statement was adopted for the YDP Network: "Convinced that CHAPTER 7 77 youth are key agents for change, the YDP Network aims to create direct interaction among youth organizations, the World Bank, and other partners to facilitate active youth participation in projects, policy design, and youth advocacy for development. This will be achieved through knowledge sharing, capacity building, empowerment, and resource mobilization." To find out more about YDP goals and activities, go to http://www.ydpnetwork.org. Becoming Part of the Solution Although the World Bank has accomplished much for and with young people, such work is only a beginning--and the Bank's ability to support the wide array of youth-led initia- tives that exist remains limited. Luckily the Bank is but one of a number of organizations working locally, nationally, and internationally to address urgent development needs. Readers of this book can learn more about what the Bank and other organizations are doing, discuss and debate the issues high- lighted on these pages, and take an active role in addressing needs within their communities. A wide range of resources exists to help young people who are looking for ways to make a difference (see Resources for Action on page 80). Getting involved can mean: Voting and encouraging other youth of voting age to do so Starting an issue-oriented discussion group in school or the community Writing for the local media or creating a new media outlet Signing an online petition or starting a new one Launching an advocacy campaign Volunteering for a local, national, or international civil society organization Mobilizing peers to start a project or launch a grassroots organization Contributing to your country's poverty reduction strategy or national development plan. 78 THE FUTURE: YOUTH AND THE WORLD BANK Conclusion Imagine a world free of poverty. Consider the impact if every young person in the developed world could reach out and assist their peers in the developing world. And imagine if every young person in the developing world who wanted to make a difference had the opportunity to do so. This is the world vision of the people working at and with the World Bank, and more and more of them are young people. The activities described in this book represent an important step forward in the Bank's efforts to engage youth more fully in its development work. Yet these activities represent merely a starting point. The Bank--and the broader development community--has much work ahead to formulate comprehen- sive approaches to the critical challenges facing young people throughout the developing world. Although future challenges are great, there is growing recogni- tion within the development community that they can all work better together--in partnership with young people--to meet children and youth needs in more effective, sustainable ways. Using tools such as this book, young people can be engaged not just in asking questions but also in finding solutions to the world's development needs. Much more can be achieved together than alone. The World Bank and its many partners can ensure that millions more young people are able to realize their potential and dreams of living healthy, productive, meaningful, and safe lives. CHAPTER 7 79 Resources for Action Here is a variety of organizations that will help link you to volunteer opportunities and to like-minded people around the world. Be in the Know European Youth Forum (www.youthforum.org) Glocal Youth Parliament (www.glocalforum.org) International Award Association (www.intaward.org) International Youth Foundation (www.iyfnet.org) Volunteer Guru (www.netaid.org/volunteer/abroad/) World Association of Girl Guides and Girl Scouts (www.waggs.org) World Scouting Organizations (www.scout.org) World Volunteer Web (www.worldvolunteerweb.org) World YWCA (www.worldywca.org) YouthActionNet (www.youthactionnet.org) Y2Y Community (www.worldbank.org/y2ycommunity) Speak Out Development Gateway (http://topics.developmentgateway.org/youth) TakingITGlobal (www.takingitglobal.org) Voices of Youth (www.unicef.org/voy) 80 RESOURCES FOR ACTION Volunteer Amnesty International (www.amnesty.org) Habitat for Humanity (www.habitat.org) Idealist.org (www.idealist.org) International Red Cross/Red Crescent Society (www.redcross.org) Oxfam (www.oxfam.org) Roots and Shoots (www.rootsandshoots.org) ServeNet (www.servenet.org) U.N. Volunteers (www.unvolunteers.org) Volunteer Online (www.onlinevolunteering.org) Internships Asian Development Bank (www.adb.org) Doors to Diplomacy (www.globalschoolhouse.com/doors/index.html) Idealist.org--internship listings (www.idealist.org) Inter-American Development Bank (www.iadb.org) International Monetary Fund (www.imf.org) Red Cross (www.redcross.org) TakingIT Global--internship listings (www.takingitglobal.org) United Nations (www.un.org/ictr/internsh.htm) United Nations Children's Education Fund (www.unicef.org/about/employ/index_internship.html) United Nations Development Programme (www.undp.org/ohr/Interns/intern.htm) RESOURCES FOR ACTION 81 United Nations Population Fund (UNFPA) (www.unfpa.org) United States Agency for International Development (www.usaid.gov/careers/studentprograms.html) United World College (www.uwc.org) The World Bank Summer Internship Program (www.worldbank.org/wbi/scholarships) Youth at the U.N. (www.un.org/esa/socdev/unyin/ internships.htm) Nongovernmental Organization Funding Resources Following is a partial list of online directories, resources, and organizations to explore in obtaining funding for develop- ment projects.1 More information on funding resources can be found at: www.worldbank.org/smallgrantsprogram. African Grantmakers Affinity Group (www.africangrantmakers.org) African Youth Foundation (http://www.ayf.de) African Women's Development Fund (www.awdf.org) Allavida (www.allavida.org) Asia Pacific Philanthropy Information Network (www.asianphilanthropy.org) European Foundation Centre Funders Online (www.fundersonline.org) Grantmakers Without Borders (www.internationaldonors.org) 82 RESOURCES FOR ACTION Guidestar (www.guidestar.org) Inter-American Development Bank (www.iadb.org) La Ventana de la Sociedad Civil (www.ventancivil.org.pe) National Endowment for Democracy (www.ned.org) Partnership for Capacity Building Program in Africa (www.acbf-pact.org)2 Preston Fund for Girls' Education (www.globalfundforwomen.org)2 The Synergos Institute (www.synergos.org) Notes 1. Excerpted from Guide to Resources for NGOs and Other Organizations of Civil Society, World Bank Small Grants Program, 2003. 2. These are grant resources supported by the World Bank that are available to qualified organizations. RESOURCES FOR ACTION 83 Acronyms AVU African Virtual University BINP Bangladesh Integrated Nutrition Project CAS Country Assistance Strategy CDF Comprehensive Development Framework CFCs chlorofluorocarbons CGIAR Consultative Group on International Agricultural Research EU European Union FAO Food and Agriculture Organization GDP gross domestic product GNI gross national income GNP gross national product HIPC Heavily Indebted Poor Countries (Initiative) HIV/AIDS human immunodeficiency virus / acquired immune deficiency syndrome IBRD International Bank for Reconstruction and Development ICSID International Centre for Settlement of Investment Disputes IDA International Development Association IFC International Finance Corporation IMF International Monetary Fund JPA Junior Professional Associate KDP Kecamatan Development Project MDGs Millennium Development Goals MIGA Multilateral Investment Guarantee Agency NEPAD New Partnership for Africa's Development NRPP Natural Resources Policy Project OCP Onchocerciasis Control Programme PRSP Poverty Reduction Strategy Paper SFD Social Fund for Development SLS Same Language Subtitling (for Mass Literacy) U.N. United Nations 84 ACRONYMS UNAIDS Joint United Nations Programme on HIV/AIDS UNDP United Nations Development Programme UNESCO United Nations Educational, Scientific, and Cultural Organization UNICEF United Nations Childrens Fund U.S. United States WBI World Bank Institute YDP Youth, Development, and Peace (Conference and Network) ACRONYMS 85 Glossary Advocacy. The act or process of pleading, defending, or maintaining the cause or proposal of another--usually a disadvantaged individual or group. Balance of payments. A set of accounts for a given period, usually a year, that summarizes the financial transactions of the institutions and residents of one country with the institutions and residents of the rest of the world. The set of accounts consists of (1) a current account, which shows expenditures the country made during the period on the purchase of goods and services from abroad, and the revenue derived from the sale of goods and services to the rest of the world; and (2) a capital account, which shows the flows of private and public investment and of other transfers. Bilateral (donor, institution). An organization involving or participated in by two countries. The term bilateral means having two sides. Billion. One billion equals 1,000,000,000 or one thousand million. Biodiversity. The variability among living organisms from all sources, including land-based and aquatic ecosystems, and the ecosystems of which they are part. This variability includes diversity within species, between species, and of ecosystems. Diversity is the key to ensuring the continuance of life on Earth. It is also a fundamental requirement for adaptation and survival and the continued evolution of species. Capacity building. A generic term relating to interventions designed to develop the ability of organizations to plan and deploy resources to achieve their changing objectives more effectively and efficiently. Civil society organizations. Organized groupings of people in a society who are not government officials. They include nongovernmental and not-for-profit organizations that are based on ethical, cultural, political, scientific, religious, or philanthropic considerations. Examples are student organizations, research centers, charitable groups, foundations, trade unions, professional associations, academic institutions, media, pressure groups, and political parties. 86 GLOSSARY Community-driven development. An approach that gives control of decisions and resources to community groups and local governments, and treats them as assets and partners in the development process. Corruption. The abuse of public power for private gain. Bribery, misappro- priation of public goods, and nepotism (favoring family members for jobs and contracts) are common examples of wrongdoing or misconduct. Country office. World Bank office in the field (or in-country) that coordinates Bank activities with member governments, representatives of civil society, and other international donor agencies operating in the country, and with the country team at headquarters in Washington, D.C. Creditor. A person, institution, or country that lends money, and to whom a debt must be repaid. Debt service. The series of payments of interest and principal required on a debt over a given period of time. Debtor. A person, institution, or country that borrows money, and now owes a debt that must be paid to its creditor(s). Deforestation. The process of clearing of forests. Since tree root systems are essential for keeping topsoil in place, deforestation can bring about soil erosion. In addition, loss of trees is said to contribute to global warming because trees reduce greenhouse gases and provide shade. Developed country. High-income country as defined by 2003 gross national income figures per capita: equal to or greater than $9,386. Developing country. Low- and middle-income countries in which most people have a lower standard of living with access to fewer goods and services than do most people in high-income countries. There are currently about 125 developing countries with populations over 1 million; in 1997, their total population was more than 4.89 billion. Disabled. When a person's physical or mental condition keeps him/her from being able to function in an expected manner. Disability may result from birth, illness, or injury. GLOSSARY 87 Economic development. Qualitative change and restructuring in a country's economy in connection with technological and social progress. The main indicator of economic development is increasing gross national product (GNP) per capita (or GDP per capita), reflecting an increase in the economic productivity and average material well-being of a country's population. Economic development is closely linked to economic growth. Economic growth. Quantitative change or expansion in a country's economy. Economic growth is conventionally measured as the percentage increase in gross domestic product (GDP) or GNP during one year. European Union (EU). An economic and political alliance in which most European nations are members. It embraces a number of institutions, including the Council of the EU, the European Parliament, European Commission (civil service), Court of Justice, and Court of Auditors. Fiscal year. An accounting period of 12 months, which usually does not coin- cide with the calendar year. Governance. The process by which individuals, empowered to act on behalf of a group, make strategic decisions that direct the efforts of the whole. Such individuals often include government representatives or the board of directors of a company or nonprofit organization. A key to good governance is ensuring that those who are delegated to represent the larger interests of the group are held accountable for their activities. Greenhouse gases. Gases that trap the sun's heat within the earth's atmosphere, creating a greenhouse effect that may dangerously raise temperatures around the globe. Greenhouse gases include ozone, methane, water vapor, nitrous oxide, carbon dioxide, and chlorofluorocarbons (CFCs). Gross domestic product (GDP). The value of all final goods and services produced in a country in one year. GDP can be measured by adding up all of a country's incomes (wages, interest, profits, and rents) or by adding all expenditures (consumption, investment, government purchases, and net exports--that is, exports minus imports). Gross national product (GNP). The value of all final goods and services pro- duced in a country in one year (gross domestic product) plus income that 88 GLOSSARY residents have received from abroad, minus income claimed by nonresidents. GNP may be much less than gross domestic product (GDP) if much of the income from a country's production flows to foreign persons or firms. But if a country's people or firms hold large amounts of the stocks and bonds of other countries' firms or governments and receive income from them, GNP may be greater than GDP. Since the words product and income are often used interchangeably, GNP per capita is also called income per capita. Illiteracy rate (adult). The percentage of people, ages 15 and above, who cannot, with understanding, read and write a short, simple statement about their everyday life. Indigenous (people, village). Those who originated in, or who are native to, a particular region or environment. Industrial country. A country in which historically the greatest part of output has been accounted for by industry. However, the term is widely used to signify high-income economies. Infrastructure. The basic facilities, services, and installations needed for the functioning of a community or society, such as transportation and communications systems, water and power lines, and public institutions including schools, post offices, and prisons. Macroeconomics. The economic behavior of aggregates, such as income, employment, output, and the like, on a national scale. Market economy. An economy that operates by voluntary exchange in a free market and is not planned or controlled by a central government authority; a capitalistic economy. Microfinance. A financial system that works for the poor--especially those who wish to start or expand their small businesses--by offering them services such as savings, loans, transfers, and insurance, which they could not obtain from commercial banks. Multilateral (institution, organization). International organizations involving or participated in by more than two countries and set up primarily to help member countries with reconstruction or development efforts. The main GLOSSARY 89 multilateral agencies are the U.N. and its specialized agencies; the World Bank Group; the European Community; and regional development banks, such as the African Development Bank. Nongovernmental organization. Sometimes called voluntary agencies, these are private (not affiliated with a governmental body or institution), independent, nonprofit organizations of a charitable, research, or educa- tional nature. Productivity. The output of goods and services per unit of input--for exam- ple, per unit of labor (labor productivity), per unit of energy (such as GNP per unit of energy use), or per unit of all production resources combined. Also known as economic productivity or efficiency. Quality of life. People's overall well-being. Quality of life is difficult to meas- ure (whether for an individual, group, or nation) because in addition to material well-being (see standard of living), it includes such intangible components as the quality of the environment, national security, personal safety, and political and economic freedoms. Roma. Europe's largest and most vulnerable minority. With no historical homeland, these "gypsies" live in nearly all countries of Europe and Central Asia and are an extremely diverse minority, with multiple sub- groups based on linguistic, historical, and occupational distinctions. Size estimates of Europe's Roma population range from 7 million to 9 million, similar to the total population of many smaller European countries. Services. Intangible goods that are often produced and consumed at the same time. An example is education: Students consume a lesson--an edu- cational service--at the same time a teacher produces it. The service sector of the economy includes hotels, restaurants, and wholesale and retail trade; transport, storage, and communications; financing, insurance, real estate, and business services; community and social services (such as education and health care); and personal services. 90 GLOSSARY Stakeholder. People and entities whose lives and livelihoods will be directly affected by a policy, initiative, or project. They are often a diverse group, including children, families, business owners, and government bodies, as well as religious and other nongovernmental organizations (academia, labor unions, environmental and social advocacy groups, and the media). Standard of living. The level of well-being (of an individual, a group, or the population of a country) as measured by the level of income (for example, GNP per capita) or by the quantity of various goods and services consumed (for example, the number of cars per 1,000 people or the number of television sets per person). Sustainable development. A process of managing a portfolio of assets to preserve and enhance the opportunities people face today and in the future. Sustainable development includes economic, environmental, and social sustainability, which can be achieved by rationally managing physical, natural, and human capital. Tenement. Apartment house, usually in a city, that meets only minimum standards of sanitation, safety, and comfort and occupied by poorer families. Transparency. The quality of openness in governments and institutions that permits examination from outside parties. GLOSSARY 91 Bibliography Danielou, Morgane, Patrick Labaste, and Jean-Michel Voisard. 2003. Linking Farmers to Markets: Exporting Malian Mangoes to Europe. Washington, DC: World Bank. Kinkade, Sheila, and Christy Macy. 2004. Youth in Action: Profiles of Youth Leading Change around the World. Baltimore, MD: International Youth Foundation. Narayan, Deepa. 2000. Voices of the Poor: Can Anyone Hear Us? New York, NY: Oxford University Press. Sheram, Katherine, and Tatyana Soubottina. 2000. Beyond Economic Growth: Meeting the Challenges of Global Development. Washington, DC: World Bank. World Bank. 2002. The World Bank in Action: Stories of Development. Washington, DC. ------2003. Guide to Resources for NGOs and Other Organizations of Civil Society. Washington, DC. ------2003. A Guide to the World Bank. Washington, DC. ------2003. World Bank Annual Report 2003. Washington, DC. ------2003. World Bank Atlas. Washington, DC. ------2003. World Bank Group: Working for a World Free of Poverty. Washington, DC. ------2004. Partnerships in Development: Progress in the Fight against Poverty. Washington, DC. ------2004. Young Voices: A View of Youth Organizations and Movements in 21st Century Brazil. Brasilia, Brazil. ------2005. Africa's Promise: Encouraging Youth Participation in the Debate on African Development. Washington, DC. ------2005. Children & Youth: A Framework for Action 2005. Washington, DC. ------2005. Doing Business in 2005: Removing Obstacles to Growth. Washington, DC. World Watch Institute. 2004. State of the World 2004. Washington, DC. 92 BIBLIOGRAPHY Index classification of countries, 23 Comprehensive Development Framework (CDF), 37 conflict, help for countries emerging from, 41 consumption in developed vs. undeveloped countries, 18 A corruption, combating, 38, 40, 42 Africa Country Assistance Strategy (CAS), 19­20 North Africa and Middle East, 57­59 Croatian marine ecosystem restoration project, 53 river blindness in, 36, 37 Sub-Saharan Africa, 63­65 D African Virtual University (AVU), 65 debt accumulation, reasons for, 29­30 agriculture debt cancellation, 31, 33 India, "green revolution" in, 36 Debt Initiative for Heavily Indebted Poor Countries Loess Plateau Watershed Rehabilitation Project, (HIPC), 28­32 China, 50 debt relief, 28­32, 40 mango project, Mali, 18­21 decision-making process at World Bank, 25­26 road building for market access, Guatemala, 16 deforestation, 44 AIDS/HIV, 35, 36, 40, 63­65 developed or industrial economies, 23 Amazon rain forest protection project, Brazil, 55­56 developing economies, 23 Annual Meetings of World Bank, 25 development, defined, 2 Asia Development Marketplace, 74 Central Asia and Europe, 36, 51­53 disabilities, World Bank projects aiding people with, East Asia and the Pacific Region, 36, 48­50 43­44 South Asia region, 60­62 E B East Asia and Pacific Region, World Bank projects in, Bangladesh Integrated Nutrition Project (BINP), 62 36, 48­50 biodiversity projects, funding for, 40 Eastern European economic assistance, 36 "Bollywood" music videos used to boost literacy, education projects India, 61­62 African Virtual University (AVU), 65 Bono, 1 funding, World Bank leadership in, 40 borrowing. See loans and borrowing, and entries at debt India, "Bollywood" music videos used to boost lit- Brazil eracy in, 61­62 Amazon rain forest protection project, 55­56 Indonesia's Kecamatan Development Project poverty alleviation in, 54 (KDP), 50 Youth Voices group, 67­68 Moldova village school project, 52­53 bribery and corruption, 38, 40, 42 Yemen, Social Fund for Development (SFD), bureaucratic procedures for new businesses around 57­58 the world, 33 electricity. See infrastructure projects employees of World Bank, 8, 25, 38 C environmental issues Canada, new business start-up procedures in, 33 Amazon rain forest protection project, Brazil, carbon dioxide emissions in developed vs. undevel- 55­56 oped countries, 55 biodiversity projects, funding for, 40 Caribbean and Latin America, World Bank projects carbon dioxide emissions in developed vs. unde- in, 54­56 veloped countries, 56 Central Asia and Europe, World Bank Projects in, 36, consumption in developed vs. undeveloped coun- 51­53 tries, 18 Children and Youth Framework for Action, 5, 69, 70 Croatian marine ecosystem restoration project, 53 Children and Youth Unit of World Bank, 38, 69 deforestation, 44 China, World Bank projects undertaken in, 36, 48, 50 as growing World Bank priority, 44 civil society organizations (nongovernmental organi- water scarcity and water quality, 59 zations or NGOs), 41, 75, 82­83 INDEX 93 Ethiopia, young peoples' involvement in projects in, industrial or developed economies, 23 64­65, 71 inequity Europe and Central Asia, World Bank projects in, 36, carbon dioxide emissions in developed vs. unde- 51­53 veloped countries, 56 consumption in developed vs. undeveloped coun- F tries, 18 famine, India's "green revolution" combating, 36 worldwide incidence of, 12­13, 47 farming. See agriculture young people as disproportionate victims, 3­4 financing of World Bank, 6 information technology funding and grants for youth organizations and indi- Internet use worldwide, 12 viduals, 73 Karnataka Information Technology Project, India, 60 infrastructure projects G defined, 16 Gaza water and sanitation services project, 59 Gaza water and sanitation services, 59 Global Development Learning Network, 27 Guatemala, Western Highlands road building glossary of terms, 84­89 project, 16 Graduate Scholarship Program, 77 importance of, 41, 42­43 grants and funding for youth organizations and indi- Peru rural roads project, 56 viduals, 73 Yemen water projects, 58 "green revolution" in India, 36 Inspection Panel, 39­42 Guatemala, Western Highlands road building project, International Bank for Reconstruction and 16 Development (IBRD), 6, 7, 23, 24, 39, 49 International Center for Settlement of Investment Disputes (ICSID), 24 H International Development Association (IDA), 7, 23, health issues 24, 39, 49 AIDS/HIV, 35, 36, 40, 63­65 International Finance Corporation (IFC), 24 Bangladesh Integrated Nutrition Project (BINP), 6 International Monetary Fund (IMF), 8­9, 28 disabilities, World Bank projects aiding people Internet use worldwide, 12 with, 43­4 internships for young people, 76, 81­82 India, "green revolution" in, 36 Italy, new business start-up procedures in, 33 river blindness in West Africa, 36, 37 Yemen Social Fund for Development (SFD), 58 Heavily Indebted Poor Countries (HIPC), Debt J Initiative for, 28­32 Junior Professional Associates Program, 76 high-income economies, defined, 23 history of World Bank, 6, 7, 26­33 L HIV/AIDS, 35, 36, 40, 63­65 Latin America and the Caribbean, World Bank human rights concerns, 43 projects in, 54­56 hunger lending. See loans and borrowing, and entries at debt Bangladesh Integrated Nutrition Project (BINP), 62 life cycle approach to human needs, 70 India, "green revolution" in, 36 literacy, "Bollywood" music videos used to boost, 61­62 I loans and borrowing. See also entries at debt India changing World Bank priorities regarding, 38­39 "Bollywood" music videos used to boost literacy eligibility for, 49 in, 61­62 reasons for, 6­7, 11­13, 15­16 "green revolution" in, 36 total IBRD-IDA lending by theme and sector, fis- Karnataka Information Technology Project, 60 cal 2004, 39 Indonesia Loess Plateau Watershed Rehabilitation Project, bribery and corruption in, 42 China, 50 low-income economies, defined, 23 94 INDEX M profiles of young people Mali Alemayehu, Woubedle, 64­65 debt relief for, 28 Almeida, Pedro de Jesus, 54 mango project, 18­21 Bonnardeaux, David, 47 malnutrition, 62 Cholanski, Yashodaben, 61 mango project, Mali, 18­21 Florentino de Faria Santos, Renata, 67 Meena Clubs, 1 Loufy, Mohammed Ali, 43 microfinance, 58 Matran, Valeriu, 52 Middle East and North Africa, World Bank projects Mohapatra, Joyotirmayee, 1 in, 57­69 Ramaiah, M., 60 middle-income economies, defined, 23 Switlick, Kimberly, 35 Millennium Development Goals (MDGs), 17­18, 73 Toledo, Natalia, 72 mission statement Viuda de Guamán, Julia Juana, 56 World Bank, 11 project cycle, 20 Youth, Development, and Peace (YDP) Network, 78 projects undertaken by World Bank, 7, 15­16, 47. See Moldova also specific projects village school project, 52­53 Youth Voices group, 71 R Mozambique, new business start-up procedures in, 33 river blindness in West Africa, 36, 37 Multilateral Investment Guarantee Agency (MIGA), 24 road building projects. See infrastructure projects Rome youth leaders, 71 N Nepal, involvement of young people in, 71 S new business start-up procedures around the world, 33 sanitation. See infrastructure projects New Voices/Youth Voices groups, 67­68, 71, 72, 76 Sarajevo Youth, Development, and Peace Conference nongovernmental organizations or NGOs (civil society of 2004, 69, 77 organizations), 41, 75, 82­83 scholarship programs at World Bank, 77 North Africa and Middle East, World Bank projects Small Grants Program, 73 in, 57­59 South America and the Caribbean, World Bank projects in, 54­56 O South Asia region, World Bank projects in, 60­62 onchocerciasis (river blindness) in West Africa, 36, 37 Soviet Union, economic assistance to former nations of, 36 P statistics issued by World Bank, 27 Pacific and East Asia, World Bank projects in, 36, Sub-Saharan Africa, World Bank projects in, 63­65 48­50 Palestinians, Gaza water and sanitation services T project, 59 technical assistance provided by World Bank, 16 Paris Youth, Development, and Peace Conference of timeline, World Bank history, 26­33 2003, 4­5, 69, 77 transportation. See infrastructure projects partnership building, 37­38, 41, 71­72, 75 Peru U rural roads project, 56 UNICEF support for Bangladesh Integrated Nutrition Youth Voices project, 67, 72 Project (BINP), 62 poverty United Nations defined, 11 partnerships to aid and engage youth with, 75 East Asian development assistance, 36 relationship between World Bank and, 8 World Bank's changing priorities regarding allevia- tion of, 36­37 youth contribution to reduction of, 68 Poverty Reduction Strategy Papers (PRSPs), 20 INDEX 95 V Young Professionals Program, 77 violent conflict, help for countries emerging from, 41 Youth, Development, and Peace (YDP) Conferences, volunteer opportunities for young people, 78­82 4­5, 69, 77 voting age, 5 Youth, Development, and Peace (YDP) Network, 77­78 Youth to Youth (Y2Y) Community, 77 W Youth Voices/New Voices groups, 67­68, 71, 72, 76 war, help for countries emerging from, 41 water scarcity and water quality issues, 59 water supply and services. See infrastructure projects Wei Ming Rui, 48 Wolfensohn, James D., 73 World Bank changing approach of, 35­45 goals and strategies, 1996/2005 compared, 45 information about, 6­9, 40­41 member countries, 23­25 mission statement, 11 need for, 11­13 origins and historical timeline, 6, 7, 26­33 president, selection of, 7­8 projects undertaken by, 7, 15­16, 47 (See also spe- cific projects) structure and organization, 23­28 terms used by, 5, 84­89 Web site, 76 World Bank Institute (WBI), 26­28 World War II, World Bank's role in reconstruction of Japan and Europe following, 36 Y Yemen, Social Fund for Development (SFD), 57­58 young people alternative organizations and activities for, 78­82 Children and Youth Framework for Action, 5, 69, 70 Children and Youth Unit, 38, 69 as disproportionate victims of global inequities, 3­4 Ethiopian World Bank orientation camp for, 64­65 funding and grants for youth organizations and individuals, 73 importance of development issues to, 1­3 life cycle approach to needs of, 70 partnerships with, 71­72, 75 poverty reduction efforts of World Bank, contributions to, 68 profiles of (See profiles of young people) World Bank involvement of, 4­6 World Bank programs for, 76­78 96 INDEX Photo Credits Front cover (clockwise): Curt Carnemark/The World Bank (Philippines); Shehzad Noorani/The World Bank (Bangladesh); ©Reuters/CORBIS (Washington, D.C., U.S.A.); Scott Wallace/The World Bank (Roma men and women in Bulgaria); personal photo (Ethiopia) Back cover (left to right): Curt Carnemark/The World Bank (Vietnam); Stan Constantin/The World Bank (Romania); Curt Carnemark/The World Bank (Republic of Yemen); Curt Carnemark/The World Bank (Mexico) Page x: Curt Carnemark/The World Bank (Pakistan) Page 1: © UNICEF Page 2 (clockwise): Edwin Huffman/The World Bank (Philippines); Edwin Huffman/ The World Bank (Philippines); Alex Baluyut/The World Bank (Timor Leste); Julio Pantoja/The World Bank (Brazil); Alfred Srur/The World Bank (Honduras); Julio Etchart/The World Bank (Morocco) Page 5: YDP/The World Bank (France) Page 6: The World Bank Archives Page 8: © UN/DPI Photo (New York, U.S.A.) Page 10: Tomas Sennett/The World Bank (Republic of Yemen) Page 14: Tran Thi Hoa/The World Bank (Vietnam) Page 15: Yuri Mechitov/The World Bank (Georgia) Page 16: Tran Thi Hoa/The World Bank (Vietnam) Page 19: Curt Carnemark/The World Bank (Mali) Page 22: Jim Pickerell/The World Bank (Jamaica) Page 26: The World Bank Archives (France) Page 27 (from top to bottom): © Digital Vision; © AFP/Getty Images (Washington, D.C., U.S.A.) Page 29: The World Bank Archives Page 30: © AFP/Getty Images (South Africa) Page 31: © UN/DPI Photo (China) Page 33: YDP/The World Bank (France) Page 34: John Isaac/The World Bank (India) Page 38: © 1995 PhotoDisc, Inc. Page 44: Curt Carnemark/The World Bank (Indonesia) Page 46: Ray Witlin/The World Bank (Senegal) Page 48: Curt Carnemark/TheWorld Bank (China) Page 51: Anvar Ilyasov/The World Bank (Uzbekistan) Page 53 (from top to bottom): Miso Lisanin/TheWorld Bank (Croatia): Curt Carnemark/The World Bank (Latvia) Page 54 (both): Alejandro Lipszye/The World Bank (Brazil) Page 55: © COLLART HERVE/CORBIS SYGMA (Brazil) Page 57 (both): Bill Lyons/The World Bank (Republic of Yemen) Page 59: Tomas Sennett/The World Bank (Republic of Yemen) Page 60: John Isaac/The World Bank (India) PHOTO CREDITS 97 Page 62: Shehzad Noorani/The World Bank (Bangladesh) Page 63: Eric Miller/The World Bank (Mozambique) Page 65: Trevor Samson/The World Bank (South Africa) Page 66: Julio Etchart/The World Bank (Morocco) Page 69: The World Bank (Dominican Republic) Page 71 (from top to bottom): The World Bank (Moldova); The World Bank (Nepal) Page 76: The World Bank (Egypt) Page 77 (both): YDP/The World Bank (Bosnia and Herzegovina) Page 78: The World Bank (Afghanistan) Eco-Audit Environmental Benefits Statement The World Bank is committed to preserving endangered forests and natural resources. We have chosen to print Getting to Know the World Bank: A Guide for Young People on 15 percent postconsumer recycled fiber paper, processed chlorine free. The World Bank has formally agreed to follow the recommended standards for paper usage set by Green Press Initiative--a nonprofit program supporting publishers in using fiber that is not sourced from endangered forests. For more information, visit www.greenpressinitiative.org. The printing of these books on recycled paper saved the following: Trees* Solid Waste Water Net Greenhouse Gases Electricity 11 523 4,740 1,026 1,907 *40' pounds in height and gallons pounds kilowatt hours 6­8" in diameter 98 PHOTO CREDITS What is development? What is the difference between the World Bank and the International Monetary Fund? Who approves World Bank loans? How does the Bank deal with corruption in borrowing countries? Why not just cancel the debts of the world's poorest countries? How important is environmental impact in the World Bank's work? Does the Bank have projects that involve youth? Does the Bank really care about youth? Getting to Know the World Bank: A Guide for Young People answers these questions and offers much more. Designed for 17- to 24-year-olds, the book provides an overview of the World Bank's history, organization, mission, and work. It addresses a wide range of development issues. And it looks into the Bank's future--the world's youth. Readers will find the guide highly accessible and informative. It uses graphics to great advantage--Q & A sections, sidebar facts and figures, photos, tables--and features profiles of young people in development around the world. The last chapter describes further ideas for youth involvement in local and global development efforts. THE WORLD BANK ISBN: 0­8213­5914­2