Public Disclosure Authorized 38594documents.worldbank.org/curated/en/... · of Directors, aimed at...
Transcript of Public Disclosure Authorized 38594documents.worldbank.org/curated/en/... · of Directors, aimed at...
We thank all readers who have provided
valuable guidance and suggestions for
improving the quality of thi! newsletter.
Thi! modest effort to reach out to our
stakeholders will only succeed through
continued feedback for further
improvement. We therefore look forward
to your continued advice.
Mahmood Ayub Sami HaddadWorld Bank. IFC, DirectorCountry Directot; Middle EI1Jt &Egypt, Yemen & Djibofti North Africa
of the World Bank for Middle East am
Also present at the ceremony was
H.E. Ali AI-Saiedi, Minister of
Industrial and Technological
Development. The loan, which was
approved by the Bank's Board of
Directors on July 31, 2003, will help
support the Government of Egypt
in stimulating private sector demand
for skilled training. In turn this will
help achieve greater economic
growth, increased competitivenessand labor productivity. Lack of skilled
labor remains an important
constraint to economic development
in Egypt.
Overall, the country assistance
strategy for Egypt specifically
identifies the need for skilled
development, thus promoting broad
based private sector led growth.
In 2000, with assistance from th~
World Bank and the European
Commission, the Government ofoperation with
:f
North Africa during the signing cere'
vocational training system. The Skills
Development Project supports one
part of the strategy -financial reform
-and is designed to establish a
training system responsive to labor
market needs of the private sector.
The project also aims to improve
the internal efficiency of training,
including the more effective use of
public training funds, by establishingincentives, and feedback systems
for employers and providers.
Companion projects, funded by the
Government as well as by the
European Commission, Germanyand France, support the other
elements of the strategy.
The project has three main
components:-technical advisory services for
awareness, promotion and
outreach programs as well as
monitoring and evaluation surveys.nony.
driven training program on a
shared cost basis with beneficiary
firms, and strengthening of the
institutional capacity of eligible
project intermediaries.
-a project management unit under
which goods and technical advisory
services will be financed.
"The project wiH help improve the
employability and labor productivity
of individuals by bridging the gap
between their skills and those
required by businesses," explainsMahmood Ayub, World Bank
Country Director for Egypt. The
project will be carried out over four
years from December 2003 to
December 2007 by the Ministry of
Industry and Technological
Development. The loan for this
project has a 17 year maturity with
a 5-year grace period. .
With thir edition, we celebrate the
completion of the first year of publication
of Outreach, the quarterly edition in
your handr. We sincerely hope you have
found thir publication informative and
useful. The newsletter reflects our desire
to reach out to a wide ranging audience,
which explains why we are publirhing
it in both Englirh and Arabic.
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The lack of an agreement in Cancun is a disappointing setback but the process of negotiating improved trade rules that
benefit all countries-and especially poor people in developing countries-must go forward. Important progress was made
in the months preceding the Imeeting on the key issue of agriculture. Parties to the talk!; can and should recapture this
momentum. We continue to believe that rich countries, which have benefited most from the expansion in world trade,
should take the lead. At the same time, overcoming special interests that benefit from the status quo will require
significant political will on all sides.
President Wolfenson
We hope that the WTO members
will soon find a way to compromise
on the key stumbling blocks. The
stakes are huge. A good, pro-poor
agreement that lowers tariff peaks
and averages in bo~h rich and
developing countriJs could produce
up to $520 billion in income gains,
with both rich and poor countries
gaining substantially. Such an
agreement would increase growth in
developing countries, and would lift
an additional 140 million people out
of poverty by 2015.
opportunities offered by global trade.
This includes providing financial
support for improvements in ports,
customs, and other trade-related
infrastructure as well as financing for
transition costs, such as compliance
with WTO rules, the fiscal effects of
tariff reductions, and the economic
impacts of the erosion of trade
preferences. The Bank will also step
up trade-related research and analysis,
both to support developing countries
in formulating their own trade policies
and to better identify options that
would benefit all parties
to the talks. .The World Bank will continue to
support developing countries in their
efforts to make the most of the
Mr. Christiaan Poortman, the World Bank's new Vice President for the Middle East and North Africa Region, visited Egypt for the first time during
September 15-1 G, 2003. n~r. Jean-Louis Sarbib, the previous Vice President for the Region, joined Mr. Poortman on a departing mission prior to his
assuming his new responsibilities as the Senior Vice President for Human Development at the World Bank. The main objective of this visit is to ensure
the continuity of the strong relationship that exists between Egypt and the World Bank.
as selected members of civil society. corporate governance.
The World Bank officials also used
the opportunity of their visit to
sign the Skills Development Project.
which was recently approved by
the World Bank Board of Directors.
They also signed a grant agreement
for strengthening the institutional
capacity of the National Council
for Women, and another grant to
the Ministry of Foreign Trade for
the establishment of the Institute
of Directors, aimed at improving
Mr. Poortman and Mr. Sarbibtravelled toOubai (September 17,2003) to attend the WorldBankjlMF Annual Meetings.
During this two-day visit, Mr.
Poortman and Mr. Sarbib met with
H.E. Dr. Atef Ebeid, the Prime
Minister, and the Economic Cabinet
on the major macroeconomic and
structural reform issues. They also
met with several sectoral ministers
on the key areas of cooperation
in project financing as well as
advisory and technical assistance
services. The senior officials also
took the opportunity to meet with
key representatives of donor
agencies and private sector, as wellMr. Christiaan Po~man
North Africa Enterprise Development (NAED) signsits first Small and Medium Enterprise (SME) access tofinance mandate with United Bank of Egypt (UBE)
NAED signed on June 2nd, 2003 with UBE, an It will also evaluate the current operational
advisory service mandate which focuses on the environment and internal capabilities to introduce
development of UBE's retail and SME finance credit scoring, which in turn, will allow UBE to
operations. capture data and process applications electronically.
This will lead to a substantial reduction in the timeNAED advisory mandate will focus on assisting consuming application process, making it less costly
UBE in analyzing its strategic options for three and more profitable for bank lending to retail and
business areas: credit cards, merchant and Islamic small business customers.
financing and assessing their potential for growth
in the small enterprise financial services market. NAED mandate is expected to start in June 2003
and be implemented over a period of four months.
Mr. Antonie Courcelle-Lobourse, NAfD's ProgramManager and the Chairman of UHf.
The project is expected to have threemain components: (i) improvingaccess and equity to P!eschoo.ls..
, . t' d t d d .," .. ... Inpu s.,. an san 'ar'c,/cens/ng
procedu res; and ( ill) Jmprov ing
cap~cio/ .in the Mi..nistry of Education
benefi.tsofpreschool educat!on,
..rh
eWorldBank' s strategy in Egypt
ptaces emphasts on areas wher~
gov~rnmentco mm itment.l sstrong,where the Bank has along and
successfutexperience, and whereiheBankcan serve as a catalyst tomobilize significant donor financing.
The proposed project ~atlsfiesallthese criteria.. The design of the
proposed ECEproject <;omp!imentsand bui)ds on prior operations thatthe Bank has supported in Egypt;helping to build coherence andcontinuity of the overall. Egyptianeducation program. It is hoped thatthis future project will contribute to
the generaJ well.bemg and schoolreadiness of disadvantagedchUdrenthrough access to quality ECEprograms, therebycontributmg tothe attainment of. Education for Alland Millenmum Development Goals
wofldwide..
Egypt has made substantial progress
in educational development over
the last decade. However, it still
fates several important challenges
to achieve its future educational
goals. One such challenge is making
sure that young children are ready
for school by the time they enter
the first grade. The country has made
a serious commitment to preschool
education and has started to strive
for increasing access and improving
KG teacher qualifications, class size,
and curriculum development.
Substantial issues, however, remain
to be addressed at this educational
level and the Government of Egypt
has requested the support of the
World Bank and the Canadian
International Development Agency
(ClDA) to tackle some of these issues
through a proposed Early Childhood
Education Enhancement (ECE)
Project.
particularly for those whoatepoQr;
(ii) improving qualityofpr ,es~hoolsthrough better curricula,trainedteachers, health ahdhutrition~[
and at t~eto(?all~vet5 toad dress.pr~$th()6t.issu~s...rhaddition, the...
project also aim$ to increase 1ocalcommunitykl}o~t.~dge of the
World Bank and CIDA to provide support for an Early Childhoo(]
Education Enhancement Project
The objective of thl! project is to develop and test integrated programs for
children with disabilities and youth at risk, through a range of providers, and
to inform the development of a new strategy for improving services.
The project will create the conditions fundamental to improving the quality
and efficiency of the higher education system in Egypt through legislative
reform, institutional restructuring, and establishment of independent quality
assurance mechanisms and monitoring systems.
The project's objective is to help create jobs and provide community
infrastructure and services through labor-intensive works. The Project will assist the Borrower in carrying out a pilot program to
stimulate the private sector demand for skills training development through
a demand-driven and competitively-based mechanism.
The project will primarily support the sustainable development of Sohag rural
villages through the participatory approach initiated by the National Program
for Integrated Rura! Development.
World Bank Group Director for Small andMedium Enterprise Development visits EgVptThe Director of the World Bank's and IFC's Small and Medium
Enterprise (SME) Department, Mr. Harold Rosen, visited Egypt duringthe month of September as a part of a broader visit to the MiddleEast and North Africa region. The objective of his trip to Egypt was.to assess the state of SME development and intermediary support
institutions in Egypt, and to reinforce IFC's commitment to its newlyestablished North Africa Enterprise Developme~t (NAED) facility inits goal in strengthening such institutions, ~~~~t:e:heW"bpport~l!)ities,
and reduce constraints on SME growth by str~ngthening the bosiness
environment, and financial business services available to SMEs.
Mr. Rosen said, "SMEs are the engines of growth in the private sectorof most economies, and this is especially true for developing countries.
Supporting SME development is thus a core focus for IFC and theWorld Bank Group. IFC's NAED initiative has been working topromote SME development in Egypt and North Africa, and I ampleased with its accomplishments over the last few months."
More information is available at http://www.ifc.org
and http://www.ifc.org/sme.
oflFC.
World Bank AppointsNevv Chief Economist
Fran~ois Bourguignon has been appointed Chief Economist and Senior Vice
President, Development Economics, at the World Bank. He succeeds Nicholas
Stern, who will leave the Bank Group in October to become the Second
Permanent Secretary and Managing Director, of Budget and Public Finances
at the Treasury of the United Kingdom.
Bourguignon, a Frel'lch national, was named Director of the Development
Research Group, a part of the Development Economics Vice Presidency, last
April. He previously served as managing editor of the World Bank Economic
Review. Bourguignon has advised many developing countries, the OECD, the
United Nations, and the European Commission. Since 1985, he has been
Professor of Economics at the Ecole des Hautes Etudes en Sciences Sociales
in Paris, where he founded and directed the DELTA research unit in theoretical
and applied economics. He has also held academic positions with the University
of Chile, Santiago, and the University of Toronto. He is a Fellow of the
Econometric Society and President of the European Society for Population
Economics, among other distinctions.
Sahar Ramy recently joined the World Bank Office in Cairo as a Senior
Human Resources Officer, starting August, 2003. She holds a Masters
Degree in Political Science from the American University in Cairo.
Sahar Ramy brings 18 years of rich experience in the private sector. She
held several positions in different multinational companies in Oil, Banking
and Pharmaceutical sectors. Her last position was Regional Human
Resources Manager for Pfizer Middle East Region. She was also a part-
time lecturer at the American University in Cairo.
She will be responsible for strengthening HR support to country office
staff across the MENA Region.
t~1 develop its Micro and Small Enterprises
[nnSEs] operations~OO3, an adViS?ry
s~rYr~e~~:a:t1datetgi:le¥eIQpJtsMSEs nnancegperatlons. NAED advIsoryc
targeting Micro and Small
Et1terpris~$ pr9Vji:lii1gtnemwithinvestment and working capital financin g., ~
rbankstotbisne:w;tpppoath..Banq\re MISR will exteni:l)oans to
develgp!i~f;tl1elractivity d\\.f.~tq
tost;trt,CC;;" ...of twelve months,
B~hque Misr experts hope
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The Public Information Center maintained at the World Bank Cairo Office, makes Bank
information available to the public and disseminate its work to the widest possible audience.
The PIC serves as the central contact in the country for persons seeking to obtain Bank
documents and information on Bank's operations.
PIC Services:.Access to World Bank publications
.Free training on electonic search on the World Bank homepage
.Free access to electronic through stations dedicated to client's service
.Photocopying service (for World Bank publications)
.Answers to queries through email or telephone
(.)
..c:;,a..
1W 0 ridRecent Ban k Pub I cations
generations. The ability to use land rights as collateral for credit
helps create a stronger investment climate and land rights are
thus, at the level of the economy, a pre-condition for the
emergence and operation of financial markets.
Property rights to land are one of the cornerstones for the
functioning of modern economies. This book looks first at the
historical, conceptual, and legal contexts of property rights to
land. It then considers aspects of land transactions, including
the key factors affecting the functioning of rural land markets.
Finally, it explores the scope and role of governments and land
policy formation and discusses ways in which developing
countries can establish land policy frameworks that maximize
social benefit.
land Policies for Growth and Poverty Reduction
Taxation of Financial Intermediation: Jheory and Practice f~r Emerging E~qnomies
Land is a key component of the wealth of any nation. Throughout
history, virtually all civilizations have spent considerable time
defining land rightsland establishing institutions to administer
them. Well-defined, secure, and transferable rights to land are
crucial to development efforts.
In developing count ies, most land is used for agricultural
production, a main y of economic sustenance. The possession
of land rights also pically ensures a baseline of shelter and
food supply and alI ws people to turn latent assets into live
capital through entepreneurial activity. Once secure in their
land rights, rural h use holds invest to increase productivity.
Moreover, the use f land as a primary investment vehicle
allows households t accumulate and transfer wealth between
This volume examines the possibilities and pitfalls to successful
financial sector tax reform from theoretical, empirical and
practical perspectives. It explores the possibilities and limitations
of "big ideas" such as removal of all capital income taxation,
the application of \fAT to financial services or heavy reliance
on financial transactions taxes. The risks of attempting to use
financial sector taxes as corrective instruments are stressed.
Two defensive criteria are advanced as key: making the financial
tax system as arbitrage- and inflation-proof as is practicable.
Each commissioned essay develops a distinct aspect of the
Investment Climate Around the World:Voices of the Firms from the World Busine~The analysis of firrrtievel data collected through parallel
international enterprise surveys can reveal important linkages
between governance constraints and business growth and
investment. The World Business Environment Survey (WBES),
an initiative led by the World Bank Group in 1999 and 2000,
collected enterpris~ data from more than 10,000 firms in 80
countries and one *rritory. Econometric analysis of responses
to that survey poin~ to a strong association between corruption,
financing, regulatorry and tax constraints, policy uncertainty,
and protection of i~tellectual property rights with firm-level
area. Theoretical chapters model the impact of taxes on
intermediaries, the design of optimal tax schemes, the role of
imperfect information and the relationship with saving. Current
practice in the industrial world and case studies of distorted
national systems provide an empirical underpinning. Finally,
experience with several of the main practical issues is discussed
in chapters ranging from the income tax treatment of
intermediary loan-loss reserves, the VAT, financial transactions
taxes, deposit insurance and inflation. Contributors are
distinguished academics and practitioners.
~S
Environment Survey
performance, as measured by sales and investment growth
and participation in the formal economy.
Investment Climate Around the World presents the core WBES
questionnaire and survey findings, and confirms the significance
of key country conditions on firm performance and behavior.
The findings provide a basis for regional comparison but suggest
the need for caution when averaging across categories, especially
in light of country conditions that can significantly affect firm-
level sales and investment.