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Strategy to promote inclusive growth and opportunities for all Dominicans
September 27, 2014 9:22 A.M
Washington, DC (TDN) The World Bank Board of Executive Directors
endorsed today a new strategy to support the Dominican Republic’s efforts to
broaden economic and social opportunities for all Dominicans. The strategy
offers a new lending program of US$550 million and advisory services over the
next four years 2015-18.
The new strategy was jointly prepared by the Dominican Government, and the
World Bank Group (WBG) comprised by the International Bank for Reconstruction
and Development (IBRD) the International Finance Corporation (IFC) and the
Multilateral Investment Guarantee Agency (MIGA).
Economic growth in the last decade has been strong, but with little impact on
poverty reduction. This Country Partnership Strategy with the World Bank Group
will support our efforts to achieve a more just country, with better
opportunities for all, said Temístocles Montás, Minister of Economy, Planning
and Development.
While the Dominican Republic grew at an average of 6.7 percent per year over
the last decade, making the country one of the top performers in the Latin
America and Caribbean region, poverty and unemployment have remained high, with
46 percent of rural Dominicans living in poverty and about 30 percent of young
people unemployed.
The Dominican Republic has significant potential to create more and better
jobs, as well as to improve access to finance, to more reliable electricity and
telecommunications, and to better services in education, health, water and
social protection, for the poorest 40 percent of the population, said Sophie
Sirtaine, World Bank Country Director for the Caribbean. This new strategy
reflects a common effort to boost results on the ground in these areas , she
said.
To achieve these goals, the strategy agreed with the Dominican government
identifies five thematic areas for support to:
" Improve access to quality public services, including education, health, water
and social protection by increasing the number of new teachers recruited under
a competitive selection system, doubling the number of children vaccinated,
providing access to improved sanitation to approximately 128,000 poor people in
Puerto Plata, and strengthening the flagship safety net Progresando con
solidaridad.
" Increase access to electricity, telecommunications and other infrastructure
by reducing losses in the electricity sector, investing in renewable energy and
improving access to more efficient and reliable ICT services through a national
broadband network interconnecting 15 provinces.
" Build resilience to external shocks by installing a new telemetric network
for managing water resource flows, building and rehabilitating four dams and
developing a national integrated information system.
" Improve the business climate by halving the time taken to register new
companies, improving access to finance for over 60,000 small and medium
entrepreneurs, and facilitating more public private partnerships.
" Promote efficient management of public resources by strengthening fiscal
management, budgetary processes and civil society capacity in budget analysis
and oversight.
A critical part in the strategy will be played by IFC, the largest global
development institution focused exclusively on the private sector. IFC s
committed portfolio in the Dominican Republic stands at US$208 million. In
addition, mobilizations from IFC partners amount to US$97 million. IFC expects
to mobilize financing for new investments for an average total of US$50 million
per year.
IFC has partnered with the Dominican private sector for more than 50 years in
critical areas such as diversifying the energy matrix, increasing access to
financing for small and medium entrepreneurs, and supporting new
infrastructure, said Ary Naim, IFC s Country Head for the Dominican Republic.
With this new strategy, we plan to build on these strong partnerships, helping
the country generate productive jobs and continued economic growth.
Support to the private sector is complemented by a MIGA guarantee for US$107.6
million for a toll road to the Northeast of the DR for MIGA s client,
Autopistas del Nordeste.
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