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2	Outline The World Bank Group The World Bank Group in Egypt Looking ahead
3	Before going ahead: Aid is first and foremost about results ! A sample of results facilitated by World Bank Group support: The new Sharm-el Sheikh Terminal 2 million people covered by primary health insurance in pilot governorates 450 local development subprojects in the Sohag governorate Number of days to register a firm in Egypt reduced from 34 to 9 days and minimum capital divided by 60 Strengthened banking system finances Coverage against non-commercial risks for Orascom’s investments in Pakistan
4	The World Bank Group: A definition A development institution and a financial intermediation institution Raises funds on capital markets (with AAA rating) to lend them to developing countries Mandate focused on development – looks for both financial and economic rates of return Requires multi-disciplinary and multi-sector approaches Provides an integrated package of services, both financial and advisory Five entities IBRD à Loans to/through Government IDA à Subsidized loans to/through Government IFC à Loans and equity to private sector MIGA à Guarantees ICSID à Settlement of disputes
5	The World Bank Group: Strategic approaches Middle-Income Countries: à Quality, speed, costs Low-Income Countries: à Same as above+be the “glue” of external assistance Fragile States: à Hands-on support and tailored advice Knowledge: à Facilitate cross-country transfers of experience Global Public Goods: à Advocate and develop financing solutions (e.g. climate change) Arab World: à Scale up support
6	The World Bank Group: Some Products IBRD lending Annual lending: $10 billion to $15 billion, of which about 10 percent to MNA Financial terms: LIBOR, over 30 years IFC financing Loans (project, corporate, or trade loans) at market rates, between 7 and 12 years Equity (less than 20 percent) Syndicated loans Risk management products Client countries also value analytical and advisory services (by IBRD, IDA, and IFC)
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9	Worldwide World Bank ICA work allows us to learn from entrepreneurs their key costs and constraints
10	The World Bank Group in Egypt: Overview A mature relationship that has been transformed over the decades and over the years – and that is producing results Key principle: the Egyptian Government and private are driving progress, the World Bank Group can only support in those areas where it has a comparative advantage due to its knowledge of experience in other countries or to its financing instruments. A Country Strategy (2006-2011) focused on: Facilitating private sector development: financial sector, trade, business environment Enhancing the provision of public services: macroeconomic stability, infrastructure services, environment, education, public sector performance) Promoting equity: safety nets, regional disparities, health, gender
11	The World Bank Group in Egypt: Activities IBRD lending An outstanding portfolio of 18 projects, for a total commitment of $1.8 billion A financial engagement in a broad range of sector, with a focus on: financial sector, transport, power, water, education, and health—see an example in the second slide following IFC financing Outstanding portfolio of $466 million, with 33 projects Annual commitments increased to about $310 million last FY Diversified portfolio: financial sector, infrastructure, oil and gas, metals, agribusiness, mining, ICT, and health care Analytical and advisory services A series of “reports” and hands-on technical assistance to both Government (IBRD) and private sector (IFC), with a focus on sharing global experience—see examples on next slide An engagement that spans sectors, with a focus in the recent period on: financial sector, business environment, energy, social protection, telecommunications, education, and health
12	One of the main constraints identified in the Egypt ICA was Access to Finance
13	EXAMPLE OF FINANCIAL SECTOR WORK Financial Sector Development Policy Loan
14	Looking ahead: At the World Bank Group level Strengthen responsiveness to Middle-Income Countries – further reduce costs of lending (financial and non-financial) and further develop knowledge services lines of business Scale up engagement in the Arab World to support progress in the Region through: Regional initiatives (analytical work or cross-country projects) Development and dissemination of best practices in the Region
15	Looking ahead: At the Egypt level The World Bank Group will remain a financier and advisor in support of Egyptian Government and private sector Maintain a solid program in size and quality Maintain strategic directions, especially as regards emerging priorities: Continued macro stability Further progress in business environment and financial sector Infrastructure solutions Social equity Reduced mismatch between skills and jobs
16	In closing: Aid is first and foremost about results ! Current efforts have a meaning only if they produce results – i.e. improved living conditions and enhanced opportunities for the Egyptians The effort is led and will continued to be led by the Egyptian Government and private sector – and the World Bank Group is committed to help where it can add value We are looking forward to a continued very close cooperation with the Egyptian private sector – which is a critical condition for our work to be effective
17	In what ways and areas, could WBG support your countries better? Encourage Dialogue? Technical Advise and Analytical Work? Developing New Strategy? Identifying Priority Areas of Reform? Sharing of Cross-country Experience? Providing New Products? Other Delivery Mechanisms?
18	THE ROLE OF PARTNERS IN DEVELOPMENT IN FINANCING THE GOVERNMENT AND PRIVATE SECTOR Multilateral Organizations Thank you!