adminThe strategy is aimed at fostering private sector-led growth, strengthening core systems for public sector management, reducing vulnerabilities and strengthening human development. In a statement, the World Bank said the third ISN has been prepared to swiftly respond to changes in the country context. It pointed out the new Constitution and forthcoming elections will be important elements during the ISN period.
“The ISN has been informed by three scenarios: the status quo, enhanced re-engagement and deterioration-specific features of these scenarios, current assessment of their likelihood”.
The global lender said the resource-rich country had good infrastructure and tremendous potential for growth. As such, it was keen on ensuring the country benefits from all its resources. These include the World Bank’s global knowledge, financial assistance and analytical work as it sets out to rebuild the economy.
The World Bank pledged to work with Zimbabwe, under the status quo scenario, to support economic reforms and recovery. Support would be rendered through dialogue and analytical work, building on the success achieved during ISN2 through analytical multi-donor trust fund and other forms of support.
The World Bank said if the situation improved and re-engagement is confirmed it would work with other partners to help Government develop social and economic reform programmes for arrears clearance and full re-engagement.
However, the Bretton Woods institution said under the third scenario, if the political economy deteriorates to the point where most analytical work no longer has a receptive audience, the World Bank would scale back its work and staff. Zimbabwe has not benefited from the World Bank’s major funding facilities extended directly to the Government due to its arrears.
The World Bank said the country owes it US$1 billion.
World Bank country director for Zimbabwe, Malawi and Zambia Kundhavi Kadiresan said: “Zimbabwe has been on a path of economic recovery, but there are significant challenges that need to be addressed to support the high growth path in order to substantially reduce poverty.
“Our support articulated in the ISN is a step towards enhanced re-engagement, which is crucial in beginning to transform the standard of living for all Zimbabweans.”
The World Bank said Zimbabwe has defaulted on repayment to the global multilateral lender since October 2000. In recent years it has stepped up support through various trust funds to undertake knowledge work to inform policies and implementation of specific projects in health and social sectors.
It plans to work with international financial institutions over the coming months to determine Zimbabwe’s eligibility for support under the heavily indebted poor countries initiative.
“After that, Zimbabwe would be able to access support from World Bank Group’s International Development Association exceptional support mechanism for arrears clearance along with domestic and other resources,” the World Bank said.
Online Reporter