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PROJECTS OF WORLD BANK GROUP IN ROMANIAThe World Bank Group  what do you know?The World Bank Group in Romania A practical approachConclusions
永壊壊壊壊壊壊岳
The first loan granted by the World Bank was given to GermanyFALSE it was given to France
The World Bank Group is Romanias largestcreditor. . . TRUE
TheWorld Bank Group consistsof six closely associated institutionsFALSE consists of five 	institutions
The largest shareholder of theWorld Bank Group is Japan (16.41% of votes)FALSE it is United States
Once a country withdraws from theWorld Bank, it can never rejoin. . . BOGUS
WORLD BANK GROUPInternational Bank for Reconstruction and DevelopmentInternational Development AssociationInternational Financial CorporationMultilateral Investment Guarantee AgencyInternational Centre for Settlement of Investment Disputes
IBRDaims to reduce poverty
promotes sustainable developmentloans guarantees analytical & advisory servicesReimbursement time: 15  20 yearsIssues bonds to raise money
IDAReimbursement:20  40 yearsworlds 81 poorest countries
better basic servicesNo interest chargeseducation health care rural developmentContributions from richer member countries
175 member countries182 member countries   largest source of loansencourage foreign direct investmentsprivate sector investmentsmediation of investment disputesconciliation and arbitration of investment disputesLeading international arbitration institution
ROMANIA2nd largest country in Eastern EuropeMiddle income countryGNI per capita  7.930 US$7th largest country among E.U. MembersPopulation over 21 millionJoined the European Union on January 1st 2007
Romaniafaces the difficult task of reconciling short  term fiscal consolidation
needs to mitigate the social costs of the crisis
hopes to restore the sources of sustainable growth
 is forced to fiscal adjustment measures and reevaluation of policies Multilateral Support from:for 19.95 billion EuroWBGIMFECOthers..
strengthen fiscal policy further to reduce the governments financing needs and improve long term fiscal sustainabilitysustainably reduce inflation;maintain adequate capitalization of banks and liquidity in domestic financial markets; secure external financing and improve confidence
GOODBADROMANIASThe economic crisis has forced strong austerity measures and a re-evaluation of populist policies, including in public sector wages and pensions.
Early 2009: drop in domestic demand, drop in exports  and imports dropping even more sharply.
Rising unemployment as well as poverty.
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WBG

  • 1. PROJECTS OF WORLD BANK GROUP IN ROMANIAThe World Bank Group what do you know?The World Bank Group in Romania A practical approachConclusions
  • 3. The first loan granted by the World Bank was given to GermanyFALSE it was given to France
  • 4. The World Bank Group is Romanias largestcreditor. . . TRUE
  • 5. TheWorld Bank Group consistsof six closely associated institutionsFALSE consists of five institutions
  • 6. The largest shareholder of theWorld Bank Group is Japan (16.41% of votes)FALSE it is United States
  • 7. Once a country withdraws from theWorld Bank, it can never rejoin. . . BOGUS
  • 8. WORLD BANK GROUPInternational Bank for Reconstruction and DevelopmentInternational Development AssociationInternational Financial CorporationMultilateral Investment Guarantee AgencyInternational Centre for Settlement of Investment Disputes
  • 10. promotes sustainable developmentloans guarantees analytical & advisory servicesReimbursement time: 15 20 yearsIssues bonds to raise money
  • 11. IDAReimbursement:20 40 yearsworlds 81 poorest countries
  • 12. better basic servicesNo interest chargeseducation health care rural developmentContributions from richer member countries
  • 13. 175 member countries182 member countries largest source of loansencourage foreign direct investmentsprivate sector investmentsmediation of investment disputesconciliation and arbitration of investment disputesLeading international arbitration institution
  • 14. ROMANIA2nd largest country in Eastern EuropeMiddle income countryGNI per capita 7.930 US$7th largest country among E.U. MembersPopulation over 21 millionJoined the European Union on January 1st 2007
  • 15. Romaniafaces the difficult task of reconciling short term fiscal consolidation
  • 16. needs to mitigate the social costs of the crisis
  • 17. hopes to restore the sources of sustainable growth
  • 18. is forced to fiscal adjustment measures and reevaluation of policies Multilateral Support from:for 19.95 billion EuroWBGIMFECOthers..
  • 19. strengthen fiscal policy further to reduce the governments financing needs and improve long term fiscal sustainabilitysustainably reduce inflation;maintain adequate capitalization of banks and liquidity in domestic financial markets; secure external financing and improve confidence
  • 20. GOODBADROMANIASThe economic crisis has forced strong austerity measures and a re-evaluation of populist policies, including in public sector wages and pensions.
  • 21. Early 2009: drop in domestic demand, drop in exports and imports dropping even more sharply.
  • 22. Rising unemployment as well as poverty.
  • 23. Romania steadily converges in income, competitiveness and living standards towards the EU.
  • 24. 2003 -2008: Romanian economy system experienced an economic boom, associated with the process of accession to the EU, leading to rapid gains in poverty reduction.
  • 25. In 2008, income per capita was around 44% of the EUs 27 average.W.B.G.Objectives of the World Bank Group: - To support Romania in dealing with the economic and financial crisis- To broaden and deepen the reform program for sustainable growth. Advisory and Analytical Activities (AAAs) CPSDevelopment Policy Loans (DPLs)
  • 26. PROJECTS OF W.B.G. IN ROMANIAHEALTH1991 2008 :World Bank Group supported a total of 54Bank projects in Romania, with a total commitment of about US$ 5.5 billion. SOCIAL PROTECTIONEDUCATIONNOW: Romanias World Bank portfolio consists of 16 active projects, including the DPL1, with a corresponding net commitment of US$ 1.779 billion, and several on-going nonlending analytical and advisory activities in various stages of finalizationPUBLIC ADMINISTRATIONPENSIONS
  • 27. 47%25%28%Complementing EU Support for Agricultural Restructuring Project of Romania (CESAR)
  • 34. Hazard Risk Mitigation and Emergency Preparedness Project Rural Education Project2003Improve access to quality education for rural students6 year project develop on 4 main componentsThemes: education for all, education for the knowledge economy, participation and civic engagement, rural services and infrastructure
  • 35. Rural Education Project Total investment - $91 millionIBRD - $60 millionMinistry of Education and Research - $30 millionLocal Public Administration bodies - $1 milllionClosed September, 2009 - satisfactory outcome and moderate risk to development outcome
  • 36. CONCLUSIONSWBG contributed to major developments in Romaniasignificant role in transition up to EU accessiontransformation of the financial sectordevelopment of Romanias energy sector the Bank supported reform of Higher Education financing plans