You're reading: World Bank to continue technical support for Belarus

MINSK — The World Bank confirms its intention to continue providing aid to Belarus in the development and implementation of structural reforms, and is willing to consider the possibility of preparing a new country strategy, World Bank country director for Belarus, Moldova and Ukraine, Qimiao Fan said in a letter to Prime Minister Mikhail Myasnikovich, the government press service reported in a press release.

The World Bank is prepared to continue providing assistance to the
government in the development and implementation of comprehensive and
deep structural reforms aimed at increasing the competitiveness and
sustainable growth of the country’s economy, the release reported Fan as
saying.

The World Bank is planning technical assistance for structural
reforms, which will make it possible to take a flexible approach to
providing consulting and analysis support for economic policy priorities
set by the government, the release said.

Fan also “gave an answer concerning the Belarusian government’s
request to quickly develop a new cooperation strategy, promising to
discuss this issue at the bank,” the release said.

The letter put particular emphasis on the prospects of Belarus
joining the World Trade Organization, which Fan believes would provide a
unique opportunity to link reforms to external factors. Fan is prepared
to organize a mission visit to determine specific areas that will need
support, as well as discuss possible sources of financing for a
comprehensive support program with potential donors.

The World Bank also confirmed its willingness to provide aid to the
National Investment and Privatization Agency in order to demonstrate the
advantages of competitive and open privatization procedures.

In the fiscal sphere, the World Bank is proposing technical
assistance for reform of the pension and social security systems,
increasing the effectiveness of government spending on healthcare and
education, improving inter-budget relations and debt management.

Fan stressed the importance of maintaining tight monetary and fiscal
policies in order to ease inflationary pressures and strengthen the
recovery of the external accounts balance. Considering the great
uncertainty in the external environment, premature easing of
macroeconomic policy in Belarus could carry considerable risks, he said.

At a meeting with Fan in July, Myasnikovich proposed to step up work
on the preparation of a new country strategy. The previous four-year
strategy expired in the middle of 2011 and Belarus has not received new
World Bank loans since then. The World Bank earlier linked the possible
adoption of a new strategy for Belarus with the start of a new IMF
program in the country.

Belarus has received nearly $900 million from the World Bank for 13
projects since joining the bank in 1992. This included a $200 million
16-year loan for development received at the end of 2009.