REGIONS: COUNTRIES:

Victory in Afghanistan Requires Fully Supported Counterinsurgency
James Danly

In order to declare victory, we need to aid the Afghans in establishing a legitimate government whose population does not effectively support terrorist networks. The only viable course is to commit the resources necessary to conduct a full-spectrum counterinsurgency of the kind employed to such great effect during the surge in Iraq

Counterinsurgency Cookie Cutter Doesn't Fit Afghanistan
Gian P. Gentile

'Counterinsurgency' has become the new American way of war. A once obscure theory of internal conflict, it has become ubiquitous in military circles and dominates thinking on both current and future wars. More important, its precepts are being followed without serious inquiry or examination, and the U.S. military has become so enamored with the theory that it seemingly will not consider any serious alternative methods to achieve the president's objectives in Afghanistan.

With al-Qaida Diminished, There's No Sense in Expanding Afghan War
William Pfaff

Al-Qaida's relations with the Taliban today are troubled. Effective counter-terrorism strategy in Afghanistan is on the brink of completely eliminating al-Qaida. There will be no organization to return. This is the result of effective international and domestic intelligence cooperation as well as good police work. So why, one asks, is the U.S. expanding its war in Afghanistan?

Afghan Mythologies
Victor Davis Hanson

As President Obama decides whether to send more troops to Afghanistan, we should remember that most of the conventional pessimism about Afghanistan is only half-truth. Remember the mantra that the region is the 'graveyard of empires,' where Alexander the Great, the British in the 19th century, and the Soviets only three decades ago inevitably met their doom?

Afghanistan and the Prospects of World Order
Henry A. Kissinger

The request for additional forces by the U.S. commander in Afghanistan, General Stanley McChrystal, faces President Obama with cruel dilemmas. If he refuses the recommendation and General McChrystal's argument that his forces are inadequate for the mission, Obama will be blamed for the dramatic consequences. If he accepts the recommendation, his opponents may come to describe it, at least in part, as Obama's war. If he compromises ...

Afghanistan - Mission of Ignorance
Robert C. Koehler

Right up there with 'our mission,' in the pantheon of sacred foreign policy mumbo-jumbo, is 'training Afghan security forces,' that endless, multibillion-dollar prerequisite for our departure from the country. We've been training a local army and police force for eight years now to take on the good and noble task of defending U.S. interests. Yet ...

Afghanistan - Situation in Afghanistan is Serious
Robert C. Koehler

The situation in Afghanistan is serious. We're getting 'out-governed' by an enemy so ruthless it's bringing services to a desperate people ignored by the legitimate government we installed. But our eight-year quagmire . . . excuse me, war . . . can still be won, says Gen. Stanley McChrystal, the top U.S. and NATO commander in that country, who recently completed a review of the situation

Afghanistan - Going Where in Afghanistan?
Jules Witcover

Two new public-opinion polls say most Americans surveyed believe the United States is not winning the war in Afghanistan, and in one of them a clear majority say no more American troops should be sent there.

Afghanistan - At Afghan Crossroads
Jules Witcover

he leak of Gen. Stanley McChrystal's sober assessment of the war in Afghanistan puts greatly increased pressure on President Obama in weighing whether to press on with the ambitious counterinsurgency recommended or chart a new direction. McChrystal, only recently sent to Kabul as U.S. and NATO commander to tackle the revitalized Taliban insurgency, doesn't mince words

Hamid Karzai, Afghanistan and Memories of Indochina
William Pfaff

The United States is in Afghanistan for its own reasons. The Afghan president said what he did to encourage the U.S. to keep him their man in Kabul. If the Afghan people should decide that he's nothing more than an American puppet, they will get rid of him. But Washington will get rid of him, too, since he would have lost his plausibility, and hence his value

Obama Foreign Policy: Afghanistan - Uncertain Trumpet
Paul Greenberg

Faced by declining support for that war, President Obama is sending mixed signals. Yes, he's already dispatched fresh troops to Afghanistan, but he has yet to endorse any new strategy there, let alone the one being recommended by the new American commander. And while this president dithers, support for the war ebbs

Afghanistan Isn't Worth One More American Life
Joe Galloway

The debate over our creeping military mission in distant Afghanistan grows ever hotter, and before we march even deeper into trouble, perhaps it's time to dig out the old Powell Doctrine and answer the eight questions it poses. Gen. Colin Powell, then chairman of the Joint Chiefs of Staff, said these questions all must be answered with a loud YES before the United States takes military action.

Hard Decisions Ahead on Afghanistan
Joe Galloway

There are a lot of theories and proposals flying around as President Barack Obama and his national security advisers debate what our military and civilian arms of the government can do with the 8-year-old war in Afghanistan

For U.S. in Afghanistan, Why Can't There Be an Alternative to Victory
William Pfaff

Unanimous gloom regarding Afghanistan seems clear confirmation that Barack Obama and his chosen advisers have wasted no time in placing themselves and the country -- in a mere five months -- into the same desperate situation that it took the combined Johnson and Nixon administrations 15 years to arrive at in the case of Vietnam. This view would seem widely shared today -- without influencing policy.

Political Solution in Afghanistan Possible But Not by Going Down Current Path
William Pfaff

It would be a great service to the American nation if Barack Obama would tell us what he himself thinks the wars in Afghanistan and Pakistan are about. Gen. Stanley McChyrstal says the Taliban are winning.

One Year to Prove Strategy Is Working in Afghanistan
Robert Gates Interview

The clock in Washington on Afghanistan is going to depend on what happens on the ground. I think we need to show we are making some headway by next spring or early summer. We are not going to win it by next summer. We aren't going to be on the verge of winning it next summer; this is a long-term prospect.

General McChrystal: The New Strategy In Afghanistan
General McChrystal Interview

General Stanley A. McChrystal is commander of international forces in Afghanistan. In his interview with Julian Barnes, General McChrystal discusses the strategy and progress in Afghanistan.

How to End the Insurgency and Win the War in Afghanistan
by Anna Mulrine

A longtime Afghanistan expert with the Rand Corp. and an adjunct professor at Georgetown University, Jones talks about how the United States should handle Afghanistan.

From Iraq to Afghanistan, U.S. Foreign Wars Not Going According to Plan
by William Pfaff

In Iraq, tension was reported to be increasing between the Americans and the Iraqi military and security forces, who were supposed to take over the Americans' responsibilities. Move to another front: Pakistan-Afghanistan. Here there was also supposed to be a straightforward job to do: drive the Taliban out of Afghanistan, into the Tribal Areas of the Pakistan border. There, the Pakistan army, with American urging and help, would defeat and disarm them.

Afghan Presidential Candidate Takes a Page From Obama's Playbook
by Anna Mulrine

Presidential candidate Ashraf Ghani, the leading challenger to incumbent Hamid Karzai, has embarked on an Internet fundraising campaign modeled on that run by President Obama.

Flipping the Taliban: How to Win in Afghanistan
by Fotini Christia and Michael Semple

Although sending more troops is necessary to tip the balance of power against the insurgents, the move will have a lasting impact only if it is accompanied by a political surge, a committed effort to persuade large groups of Taliban fighters to put down their arms and give up the fight.

Events in Middle East & Central Asia Challenge U.S's Conventional Assumptions
William Pfaff

Three recent developments in the Muslim Middle East and Central Asia challenge Washington's conventional assumptions about Pakistan, the Taliban, Lebanon and Iran.

The Great Caspian Chess Match
Two future superpowers battle over who will control one of the world’s most strategically important territories.

Russia, China Hold Joint Exercises
In its largest-ever joint military operation, the Shanghai Cooperation Organization is setting itself up as an alternative to NATO.

U.S Diplomatic Rescue Mission Secures Military Base, for Now
Desperation in recent negotiations reveals America’s vulnerability in Central Asia.

Europe Seeks Control of Central Asian Energy
Efforts to build an energy corridor through the Caucasus to Central Asia demonstrate Europe’s ongoing desire to diversify its energy dependence from Russia.

EU Grasps at Central Asia for Energy

Kyrgyzstan Threatens to Evict U.S.
The U.S.’s presence in strategic Central Asia becomes more tenuous.

The Russia-Ukraine Energy Quandary
An energy dispute highlights Russia’s desire to draw the line on the EU’s eastern encroachment.

Russia, China and a Central Asian Alliance
The common desire to compete with U.S. hegemony is fusing a central Asian alliance.

America Losing Foothold in Central Asia
Rising anti-Americanism could soon lead to the eviction of the U.S. military from strategically important Central Asia—a move that would handicap America’s military goals.

Eurasian Democracy Concerns Russia
The wave of democratic revolutions occurring in Central Eurasia is a pleasing sight to America and Europe. Not everyone, however, is overjoyed with these changes.

Meltdown Ahead?

theTrumpet.com: Central Asia
theTrumpet.com -- Understand your world.

Is Central Asia post-colonial or not?
Is Central Asia post-colonial or not? Can post-colonial theory be applied to post-Soviet region? Laura Adams raises this question and generally comes up with a positive answer here (PDF pp 2-7). The current CESS President Edward Lazzerini responds with an interesting approach. I learned from his response was that the Sankt Peterburg library contains a catalogue of all [...]

Kazakhstan, Beacon of Anticorruption Activity?
To preface this entry I should say that I’m not really in a position to be objective on this issue, but I’ll attack it nonetheless: When your girlfriend or wife asks you if she looks fat or ugly, you tell her no, even if she does look fat or ugly. Sometimes a little lie doesn’t hurt. [...]

Berdimuhamedov, the Red President?
The story is a bit old, but that doesn’t make it any less interesting. In Turkmenistan, the government is forbidding what amount to a whole class of college students from studying abroad in some capacity. The EurasiaNet article states that students looking to study elsewhere in the Former Soviet Union, rather than just anywhere in [...]

A Kyrgyz power play beginning?
Something seems to be afoot in Kyrgyzstan — after another slaying of a journalist (the third this year) and the rearranging of the government that put the President’s son into a leading role, the Ata-Meken (Fatherland) party is speaking out: Ata-Meken opposition party disseminated the statement of its leader Omurbek Tekebaev, where he blames Kyrgyz President [...]

Book review: The Great Gamble by Gregory Feifer
I wish Gregory Feifer had written The Great Gamble: The Soviet War in Afghanistan before Steve Coll’s Ghost Wars. It would have seemed a lot more insightful and compelling then. Perhaps it’s a slightly unfair comparison because the former is about the Soviet side of the conflict and the latter is about the American side. [...]

Next stop – Peshawar
I have been wondering how it was going in South Waziristan and went surfing to see what I could find out. Dawn.com has this take on the situation. Basically, they are saying that to releive the pressure they are feeling in South Waziristan, the TTP are opening a new front in the south/south west suburbs of Peshawar. This [...]

Uzbekistan Frees Sanjar Umarov
If you haven’t heard yet, Sanjar Umarov was released from prison in Uzbekistan last week. (Read about in the original story that broke on Ferhana.ru and its RFR/RL English derivative). Umarov, perhaps the most famous political prisoner in Uzbekistan, was charged with tax evasion and embezzlement after founding an opposition party called “the Sunshine Coalition” in [...]

Comrade Kalashnikov and his ubiquitous, eponymous invention
As I watched Al Jazeera this morning, I saw that Mikhail Kalashnikov turned 90 yesterday. I thought this was as good a time as any to reflect on the weapon that bears his name and is used by both Afghanistan and Pakistan, and of course the Central Asian former SSRs. And, interestingly, by [...]

Security Theater in Kabul
Last month I took my first trip to Afghanistan, and arriving at Kabul International Airport it was immediately clear I was a little out of place. “What company are you with?” asked one of the plainclothes people walking around ensuring everyone filled out immigration registration form. “None,” I replied. “I’m a tourist.” Watching his face, it [...]

The Obama plan…
The FT thinks it has got a clear idea on what Obama is about to decide. The McChrystal plan is not accepted in its entirety, because the cost of $1trn over ten years is ‘too much and too long’. This begs the question – if we aren’t prepared to do what it takes, should we even [...]

Registan.net
Central Asia News -- All Central Asia, All The Time

Russia automobile producers ask to protect them from Uzbek Nexia

Nexia cars, produced by GM-Uzbekistan plant in the Uzbek city of Asaka since 1996, have been popular among Russian customers for long period.

Nexia

In the recession period the demand for these economy-class cars grew up. According to official Russian statistics, in April, August and September of 2009 Nexia ranked third on sales of the foreign cars in Russia.

In Russian market the brand is represented by over 10 options, including Low Cost option, priced at 229 thousand rubles (which is less than 9 thousand US dollars). It has to be mentioned that Russia is the main export market for Uzbek Daewoo.

Such situation along with protectionist policy of Uzbek government in relation to its automobile industry produced indignation among big Russian carmakers. They addressed Vladimir Putin with the request to impose restrictions for the sales of Uzbek cars in Russia, specifically, popular models of Matiz and Nexia, Interfax reports.

The letter was signed by AutoVAZ President Igor Komarov, GAS Group CEO Sergey Zanozin and OJSC Sollers General Director Vadim Shvecov. The leaders of the industry point out that in Uzbekistan, the most populous country in Central Asia, the government creates barriers for the sale of Russian cars.

The letter indicates that at the beginning of this year the government of Uzbekistan imposed "strict restrictive measures, targeted at the protection of GM Uzbekistan". Specifically, "it totally prohibited the currency conversion for the firms, representing Russian carmakers in Uzbekistan; besides, the government shut consumer loan programs for the foreign cars while the imported vehicles are the subject for additional highway-user tax", Interfax quotes the authors.

Russian carmakers propose to make counter-moves against GM Uzbekistan export to Russia. According to Uzbek State Committee for Statistics, in 9 months of this year GM Uzbekistan increased production of cars by 4% to 144.6 thousand items, including 60 thousand Nexia and almost 50 thousand Matiz.

European business association reports that in 10 month of 2009 23275 Daewoo Nexia and 19886 Daewoo Matiz were sold in Russia.

The letter, addressed to Prime-Minister, proposed to tie currency conversion for the cars, imported from Uzbekistan, to currency conversion for Russian vehicles, exported to Uzbekistan. Moreover, the car industry leaders suggested introducing additional duties on Uzbek automobiles.

Therefore, in the opinion of authors, it will create "equal conditions for the carmakers of two countries".

AutoVAZ representatives note that in March of 2009 former President Boris Aleshin already sent similar letter, addressed to deputy Economic Development Minister Andrey Klepach with the same complaints: due to delays in local currency conversion into US dollars and rubles the importers were not able to pay back to AutoVAZ for on time that de facto initiated cease of Lada imports to Uzbekistan.

Meanwhile, Gazeta.Ru learned from the sources in Russian Federation that no measures have been taken yet to limit the import of Matiz and Nexia.

Uzbekistan: Senior US diplomat visits Tashkent

US Deputy Assistant Secretary for South and Central Asian Affairs, George Krol, is in Uzbekistan for a series of high-level meetings.

"He is here for a couple days and will have meetings with government and non-governmental people. The purpose is to start a process of dialogue," a representative of the US embassy in Tashkent told EurasiaNet on November 18.

Observers believe Krol will focus on regional security issues and military-technical cooperation during his talks with Uzbek officials. Krol’s visit to Tashkent follows on a two-day trip to Turkmenistan earlier this week.

MEMRI: Is Tahir Yuldashev alive?

According to the Middle East Media Research Institute, based in Washington DC, on November 16, 2009 Islamic Movement of Uzbekistan (IMU) released video featuring footage from Waziristan (Pakistan). The video, which runs eight minutes and 30 seconds, intersperses this footage with a talk given in the Uzbek language by the Emir of the IMU, Tahir Yuldashev, to a small group of mujahedeen.

The date of release is not specified. However, in the past this was the way Tahir Yuldashev disproved the rumors about his death.

Last time the death of IMU leader was announced by Ozodlik Radio (Uzbek Service of RFE/RL) that received a phone call some person, "the body guard and teammate of Tahir Yudlashev", on September 28. The person informed that at the beginning of September Yuldash was wounded and lost his leg; allegedly, he died on the next day. On October 3 Abdul Fattah Ahmadi, the official IMU spokesman, emailed radio station, rejecting the death of Tahir Yuldash. "Thank Allah, our emir is alive and safe. He believes this is not his level to respond to such rumors. He is going to make some statements on serious issues soon", IMU spokesman informed. It has been month and a half, but Tahir Yuldashev still made no statement.

The Middle East Media Research Institute is an independent, non-governmental and non-profit organization with offices in Washington DC, London and Israel. The institute was established in 1998 with the purpose to cover, analyze and inform society about political, cultural, social and religious trends in the Middle East. MEMRI translates and analyzes mass media reports in Palestine, Egypt, Syria, Iran and Israel. In the research the institute uses primary sources – translation from Arab, Hebrew and Farsi.

Uzbekistan: At least 30 Muslim women are arrested in the Kashkadaria Oblast

Since the beginning of November at least 30 Muslim women have been arrested in the city of Karshi in the Kashkadaria Oblast of Uzbekistan. The Initiative Group of Independent Human Rights Activists of Uzbekistan (IGIHRAU) reports that the reason of detention is not shared even with close relatives.

According to Latofat Orzikulova, the dozen of policemen and National Security officers entered the house of her mother on November 5 and conducted a search. Finding nothing suspicious, they took two DVDs and book, presented by clerical administration of Uzbekistan. Besides, the officers detained the mother on suspicion of "organization of jamoat (communities), attraction of youth and increase the number of jamoat members".

IGIHRAU says that Mehriniso Hamdamova graduated from religious school, named after Khodja Bukhoriy in the city of Kitab in 2006 while in 2007 she took special courses on Islamic studies. Later on she was appointed to Kuk Gumbaz Karshi mosque to work with women and youth thanks to the recommendations from the Chairman of Islamic administration of Uzbekistan, mufti Usmokhan Alimov and Ms. Karomova, responsible worker for the work with women in the Kashkadaria Oblast. Moreover, Mehriniso Hamdamova solved the problems in mahallah (local communities). Ms. Hamdamova is characterized as responsible worker and it is unclear what the local authorities suspected in her activity.

The human rights activists note that the houses of Hamdamova’s parents and relatives also went through unsanctioned search. On November 5 sister Zulhumor, nieces Nigora Nosirova, Nodira Burieva, Rahima Burieva, daughter-in-law Hikoyat Imomova, Bahtishod Huzhaeva and Yulduz Tuhtaeva and others were arrested. Thus, at least 30 women were placed to detention center in Karshi. They are exposed to physiological torture and threats. National security officers want them to write statements against Mehriniso Hamdamova.

Close relatives of detained women already wrote appropriate letters to Uzbek President Islam Karimov, Prosecutor General, Head of National Security Committee, Chairman of Clerical Administration, Head of Women’s committee and subordinate structures in the Kashkadaria Oblast. No response has followed yet.

Uzbekistan: Eler Ganiev is a new deputy Prime-Minister

Eler Ganiev, the Minister for foreign economic relations, investment and trade in Uzbekistan, is appointed as the deputy Prime-Minister of the republic. Therefore, according to web-site of Uzbek government, he took over 7th vacant spot in the list of deputies of Prime-Minister.

Meanwhile, Ganiev kept his position as the minister while as deputy Prime-Minister he will be responsible for economic relations.

He had the deputy Prime-Minister experience earlier (since 2002) and also headed the Agency for foreign economic relations of Uzbekistan. In 2005 he was appointed as Foreign Affairs Minister. Since July of 2006 Mr. Ganiev has been holding the position of the Minister for foreign economic relations, investment and trade in Uzbekistan.

Eler Ganiev is originally from the Syr Daria Oblast of Uzbekistan. In 1981 he graduated from oil and gas department of Tashkent polytechnic institute, majoring in engineering and geology. After military service he became senior adviser under the State Committee for foreign economic and trade relations in Uzbekistan. Later on he headed the department in the Ministry for foreign economic relations, the Institute of strategic and interregional research under the President. In 1994-2002 he worked as deputy Minister, first deputy Minister, Minister of foreign economic relations. Besides, Mr. Ganiev is the President of volleyball federation of Uzbekistan. He is married and has three children.

Tajikistan: Rogun hydropower plant to be supported by poor?

Loosing hopes to attract foreign investors for the construction of the Rogun hydropower plant, the government of Tajikistan accepts voluntary-compulsory donations from not too wealthy population.

On October 28 Tajik President Emomali Rakhmon named the construction area of the plant as «area of creative work for national wealth» and called “every son of the nation, every patriot and our countrymen abroad to support Tajikistan through financial and moral help».

Tajik mass media already report first results. NIAT Hovar informs that on November 11 Tajik state language university, named after Sotim Ulugzade (TSLU) transferred one-day staff salary for the construction of the Rogun hydropower plant – almost 6000 somoni (about $1400).

«We totally support our President and we want our small contribution to become some help for the construction of this object. We hope that all residents of our country will follow our example for the sake of economic prosperity. Last year our teachers contributed three thousand somoni; this year we increased it by twice», says Idigul Kasymova, the deputy director of TSLU.

Meanwhile, BBC reports that few years ago Tajik authorities already turned to the citizens with the request to build another Sangtudin hydropower plant. The fundraising was conducted throughout the republic and specially issued stocks were distributed among population. Today, however, Sangtudin-1 hydropower plant is owned by Russia while Sangtudin-2 is financed by Iran. No one cares about returning money to population and Tajik authorities try to avoid any discussion on this issue.

Few days ago the parliament of Tajikistan approved the budget for 2010. $150 million (650 million somoni versus 533 million this year) was budgeted for the construction of Rogun. Overall, the investment volume in Rogun hydropower plant is estimated at 3-6 billion US dollars.

It also has to be mentioned that Tajik state committee for statistics reports that 53 percent of population are considered as poor and 17 percent as very poor. This means that basic expenses of majority of population do not exceed $40.5 per month. Many people will have to cut budgets – it is unlikely that the government, represented by officials, will leave them separately from such important national project as Rogun. Comparing the necessary investment volume in this long term project it is unlikely that current residents and pensioners in Tajikistan will ever see the launch of this enormous hydropower plant.

Tajikistan, Turkmenistan, Uzbekistan and Kyrgyzstan are not best countries for childhood

According to UNICEF report, Tajikistan, Turkmenistan, Uzbekistan and Kyrgyzstan have been listed among the countries, not favorable for childhood, RIA Novosti reports.

64 kids out 1000 never achieve the age of 5 in Tajikistan; Turkmenistan – 48 kids, Kyrgyzstan and Uzbekistan – 38 kids. The indicator for Kazakhstan is a little better – 30 kids per thousand.

Baltic states are the leaders in the post-Soviet area: the indicator for Estonia, Lithuania and Latvia are 6, 7 and 9 respectively. 13 children out 1000 in Russia die before the age of 5.

The average indicator of child mortality in CIS and Central Europe is 23 per 1000 children. It is the same as in Latin America and Caribbean.

Overall, 8.8 million kids younger than 5 died in the world last year. 93 percent of child mortality takes place in Asia and Africa while the half of dead children lived in five countries: India, Nigeria, Democratic Republic of Congo, Pakistan and China. In the number of African states the child mortality rate is 132 per one thousand kids.

The least degree of child mortality is registered in very small states of Lichtenstein and San-Marino – 2 kids per 1000. Three children out 1000 die in Sweden, Finland, Luxemburg and Singapore.

The report indicates that world average child mortality (under the age of 5) is 65 kids per 1000. UNICEF data for 2008 says that there are 634.631 million kids in the world under the age of 5.

Overall, UNICEF experts report that in the last 20 years the level of child mortality decreased. In 1990 9 percent of kids never reached the age of 5 while today’s figure is 6.5 percent. Besides medical and social reasons for high level of child mortality in certain regions UNICEF experts highlight political instability and military conflicts.

Kyrgyzstan: The decision to raise electricity rates was promoted by the World Bank

Ferghana.Ru reported earlier that the government of Kyrgyzstan made a decision to raise the tariff for electricity by almost twice – from 70 tyin to 1.5 som per one kilowatt/hour for all customers effective of January 1, 2010. Besides, effective of July 1, 2010 one kilowatt will cost 1.9 som ($1=43.8 som). In the first half of the year the cost of one gigacalorie (heating and hot water) will be 1050 som while as of July 1 the rate will be raised to 2.5 thousand som.

The governmental decree also assumes that effective of 2010 the electricity may be supplied on prepayment basis.

Own sources of Ferghana.Ru report that the government of Kyrgyzstan made such unpopular step due to conditions, set by the World Bank (WB) delegation that had visited Bishkek on October 31-November 4.

WB promised $4 million to Kyrgyz energy sector for repairs of heat stations in Bishkek and Osh in case the government sets the rate, close to prime cost. The half of promised $4 million will be offered as grant while the rest part will supplied as loan.

Recognizing the unpopularity of raising the tariff for electricity, WB is considering the allocation of $30 million to Kyrgyzstan in order to support poor people. Today, President Kurmanbek Bakiev signed the decree on compensations n in concern with higher rates for electricity and heating.

In accordance with presidential decree, effective of January 1, 2010 the salary of all governmental employees, whose compensation is not higher than 5000 som, will be raised for 200 som. Senior citizens, whose pensions are less than 4000 som, will also see the raise for 200 som.

In addition, effective of January 1, 2010 the size of monthly allowances will be increased by at least 25 percent. The presidential decree also says the effective of next year the payment of monthly compensations, substituting privileges, will be raised from 1000 som to 7000 som.

It has to be mentioned that hosting WB delegation on November 3, Kurmanbek Bakiev expressed hopes for active involvement of Kyrgyzstan in WB development of key short and medium term priorities in the field of water and energy issues in Central Asia. Specifically, the World Bank was offered to consider the financing of projects, related to energy security in Kyrgyzstan.

Kyrgyzstan has access to WB credit sources, based on «utterly preferential conditions». WB interest-free loans are offered for 40 year term with 10 year period of payment’s delay. Overall, by now Bishkek has received over $857 million from WB.

Kyrgyzstan: Roza Otunbaeva is a new Head of Social-Democratic party in the parliament

On November 11 Roza Otunbaeva was unanimously elected as the leader of the opposition Socio-Democratic party of Kyrgyzstan (SDPK) at the parliamentary session.

The previous leader Baktybek Beshimov secretly left for USA earlier in August after he was managing the office of presidential candidate Almazbek Atambaev; he motivated his decision by the fact that his life was under threat.

On November 12 Central Election Committee of Kyrgyzstan will consider Galina Skripkina as the candidate for Beshimov’s vacant position of deputy. Skripkina is a prominent lawyer that represented interests of former President Askar Akaev after his escape from the country in March of 2005.

It is worth mentioning that current Kyrgyz parliament was formed on the basis of party lists. According to the election code, if one deputy is not able to perform his duties the party may initiate his substitution by another party member, the next on the party list of 100 people, registered in Central Election Committee prior to elections.

Kyrgyzstan: Ata-Meken party blames the President in the usurpation of power

On November 11 Ata-Meken opposition party disseminated the statement of its leader Omurbek Tekebaev, where he blames Kyrgyz President Kurmanbek Bakiev in the violation of number of constitutional norms and unlawful seizure of power through the change of constitution.

Ata-Meken notes that reforms of Kurmanbek Bakiev uncovered the purpose of his politics: to strengthen personal control via rude violations of Constitution and laws of Kyrgyzstan with open ignorance of public opinion.

Tekebaev says that Bakiev went beyond his commission, appropriating authority and establishing five independent from each other institutes, united under president’s institutes whereas constitution says that President’s activity is maintained by President’s administration.

Besides, the statement mentions that President violated the number of constitutional articles on State service, appointing his relatives to important positions in the government.

"Specifically, we would like to highlight the appointment of president’s son as the Head of Central Agency for Development, Investment and Innovation. Today, this agency has great power: de facto we face shadow supreme government. Technically, Maxim Bakiev is the Head of Kyrgyz Development Fund, controlling natural and financial resources in the country. Per se we see parallel budget, not controlled by parliament and people", the statement indicates.

Finally, Tekebaev believes that Bakiev crossed moral and socio-political Rubicon as well as established personal dictatorship in Kyrgyzstan despite his unpopularity among progressive parts of society. In the opinion of Ata-Meken leader, the radicalism and legal extremism of Bakiev must produce appropriate reaction in the society.

Omurbek Tekebaev is one of the most outstanding opposition leaders. After the coup in March of 2005 Tekebaev was holding the positions of Parliament Chairman.

Singer Cesaria Evora to Give Grants to Talented Uzbek Youth

World renowned Portuguese singer, Cesaria Evora and Fund Forums' Chairperson Dr Gulnara Karimova, will give grants to Uzbekistan's talented youth. The joint award ceremony by the Fund Forum and Cesaria Evora for 'Yangi Avlod' (New Generation) children's creativity Festival will be held in Tashkent (Uzbekistan) during the final gala-concert on Tuesday, November 17. The ceremony will be followed by Cesaria Evora's solo music program. This year the project is organized with support from UNICEF.

A unique initiative for children, the 'Yangi Avlod' Festival has been held in Uzbekistan since 2004. The festival has not only become an important way of discovering and supporting gifted children from all regions of Uzbekistan, but presents an opportunity for them to showcase their talents and perform with celebrities at home and in the international arena.

The Festival became the basis for the opening of the Children`s Creativity Centers in Tashkent and Samarkand. In these free centers over 1200 children can study subjects such as computer literacy, acting, painting, needlework, singing, dancing and chess.

Children's creative teams and solo performers from 6 to 14 years old participate with different disciplines, such as classical music, singing, national instruments, dance, fine and applied arts, poetry, literature and theatrical scenarios. In the last five years about 50 thousand children from all regions of Uzbekistan have attended the Festival. About 1500 of them were winners.

Internationally renowned singer Sting while participating in the Art Week Style.Uz 2009 project awarded special grant Diplomas to the 4 best 'Yangi Avlod' laureates, acknowledging their talents and motivating them for further development.

The final gala-concert by 'Yangi Avlod' 2009 participants is dedicated to the 20th anniversary of the adoption of the UN 'On the Right of the Child Convention' and in this framework we have announced, in partnership with local UNICEF office, a competition themed "Me and my right for self-expression" for children participating in two categories; Fine and Applied Arts and Poetry, literature and theatrical scripts.

The final gala concert is being held at one of the major concert halls in Tashkent and its program consists of the Festival finalists' performances and Uzbek stars from music and the arts.

Cesaria Evora previously performed in Tashkent when invited by the Fund Forum to give a concert dedicated to 16th anniversary of Uzbekistan's independence.

Fundforum.uz

Kyrgyzstan: The President’s party wants to keep death penalty

On November 11 at the session of Kyrgyz parliament Ak-Jol President’s party rejected idea of ratification of international pact on cancellation of death penalty, adopted by UN General Assembly resolution in 1989.

According to the press-service of Kyrgyz parliament, Nurlan Tursunkulov, the reporter, informed that Kyrgyzstan joined International pack on civil and political rights, dated October 7 of 1994. Now the subject of discussion is the second protocol to this pact, saying about the cancellation of capital punishment.

The Justice Minister noted that Kyrgyz law, dated June 25, 2007 (assuming the humanization of criminal code) substituted death penalty with life imprisonment. By today, the above mentioned international protocol has been signed by 71 states.

In accordance with optional protocol no party, the subject to the jurisdiction of current Protocol member-state, shall introduce capital punishment; besides, each member-state puts all efforts within national legislation to cancel death penalty.

During the discussion deputies Raisa Sidorenko, Askar Salymbekov, Ernest Akramov were against the ratification of this protocol, noting that the rights of victims must be observed. They pointed out that crime was growing in the republic while the humanization of legislation favors criminals.

So far this is unclear whether this issue will be considered at the parliamentary session.

According to current "Bakiev’s" Constitution of 2007, the death penalty is excluded from the punishment list for criminal and other violations. The issue was raised again by Adakhan Madumarov, the Security Council Secretary, and supported by Head of National Security Murat Sutalinov who suggested making death penalty a public event.

Such statements produced indignation among human rights activists and civil society that hinted that cancellation of death penalty was one of the achievements of Bakiev’s administration. The response followed immediately: the Security Council Secretary declared the initiative was his personal opinion and did not reflect the position of Kyrgyz leader.

Kyrgyzstan: The water in the gas heaters of the residential buildings in Bishkek (video)

These days Bishkek, the capital of Kyrgyzstan, had first snow. Several thousand dwellers of residential buildings in the southern micro-districts of Bishkek lived first cold days without electricity, gas and heating. Nearly 80 residential buildings had no gas supply due to the rude mistake by the gas company workers. Instead of blue flame the residents had water in the stoves.

Ferghana.Ru news agency
Daily Central Asian news

Preparing to plunge off-piste in Central Asia
Last Updated: November 19. 2009 6:57PM UAE / November 19. 2009 2:57PM GMT My friends and I are planning an off-piste ski trip to either Kazakhstan or Kyrgyzstan around March. The question is whether w...

Opposition Figure's Release Signal of Warming Uzbek-US Ties
Email this article Uzbekistans recent release of a leading jailed opposition figure is stoking hopes for warmer relations between Tashkent and the West. But critics of President Islam Karimov&#...

Government Plans Makeover of Get-Tough Financial Police
Email this article A proposal to revamp Georgias aggressive financial police is raising red flags among some Georgian economists, who see the planned restructuring as contradicting the Georgian...

Russia Discounts Gas Price for Yerevan
Email this article Russia has promised to lower natural gas fees to crisis-ravaged Armenia, the Kremlins only stable political foothold in the South Caucasus.Starting from April 2010, Russian e...

Baku Wants Security Guarantees from NATO
Email this article A senior Azerbaijani official said that Russias invasion of North Atlantic Treaty Organization (NATO) aspirant Georgia means that Azerbaijan needs security guarantees from NA...

Putin Takes Swipe at Saakashvili
Email this article Dropping any pretense of statesmanship, Russian Prime Minister Vladimir Putin advised Ukraines pro-Western president, Viktor Yushchenko, to keep his tie away from Georgian Pr...

Russia, Kazakhstan Sign Power Grid System Accord - Prime-Tass
"We have determined commercial terms, volumes of power supplies between the two counties, their regulation and a mechanism of calculating payments for transit," he said. The agreement will help to a...

Russia, Kazakhstan Agree On New Oil Transit Terms - Prime-Tass
The two countries revised a forecast of oil transit volumes and transit routes, Shmatko said. They also agreed to explore cooperation in the construction of oil pipelines, including the Samsun-Ceyha...

In Tajikistan, Woman Dies After Beating By Russian Troop
The woman suffered injuries in a beating last week at the hands of a Russian military officer from a unit stationed in Khatlon Province, but police say her death was ultimately caused by complications...

Kyrgyzstan Moves To Ban Smoking In Public Places
The Kyrgyz parliament has approved amendments to a law that bans smoking in state institutions, at entrances to multistory buildings, and in all public places.

In Tajikistan, Free Information Comes At A Price
The Tajik government has introduced a new decree obliging journalists to pay for information obtained from officials, RFE/RL's Tajik Service reports. According to the document issued on November 19, j...

Ivanhoe Energy subsidiary to merge with PanAsian Petroleum Inc in Mongolia
Ivanhoe Energy Inc. (TSX:IE) said Thursday a move to acquire oil and gas exploration and production rights in highly prospective central Mongolia is the first step in a plan to aggressively grow its M...

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World Bank Supports Improvement of Basic Education in Uzbekistan

Contacts:
In Washington:
Kristyn Schrader +1-202-458-2736
Kschrader@worldbank.org
In Tashkent:
Matluba Mukhamedova
tel.: (998 71) 238 59 50
Email: mmukhamedova@worldbank.org

WORLD BANK SUPPORTS IMPROVEMENT OF BASIC EDUCATION
IN UZBEKISTAN

Tashkent, October 15, 2009 - The World Bank and the Government of Uzbekistan today signed a US$28 million IDA credit for the second phase of Uzbekistan Basic Education Project (BEP 2). The project will continue supporting the Government of Uzbekistan’s efforts to improve the quality of basic education and increase the effectiveness of teaching and learning in the country.

The second phase of the Basic Education Project will build upon the capacity developed and lessons learned in the first phase of the project, which is still under implementation, to help the Ministry of Public Education to implement new activities and foster broad education reform. Accomplishments of phase one include:

a standardized assessment of student learning designed and implemented for grades 4 and 8;
teacher training materials developed and facilitators and experts trained;
increased community involvement in school decision making at project schools; and
per capita financing designed and implemented in two oblasts and Tashkent City

“We are pleased that the second phase of the Basic Education Project has been signed today and that the Bank has the opportunity to continue to support the Uzbek Government’s program to raise the quality of basic education and improve the effectiveness of teaching and learning. Important first steps have begun under phase one of the Project and phase two will build on and extend the capacity now being developed. We look forward to strong implementation and positive results in improving education for young people in Uzbekistan,” – said Loup Brefort, the World Bank’s Country Manager for Uzbekistan.

The Project, like the first phase, continues to have five closely related components grouped in two main areas. The first three components are targeted towards improvement of teaching and learning conditions in project schools and preschools in poor, rural areas. The second area consists of two components that are oriented towards improving the efficiency, management and monitoring capacity of the sector, including developing a system of national assessment and implementation of per capita financing of schools. The Project’s five components are:

Providing Learning Materials and Resources for Grades Five to Nine in 1501 General Schools;
Strengthening School-Based Training for Teachers and Principals in Preschools and General Secondary Schools;
Strengthening School Boards and Providing Competitive Grants to Selected Schools for School Improvement ;
Improving Education Finance, Budgeting and Management; and
Supporting Project Management and Results Management.

By the time both phases of the project are completed the young people of Uzbekistan should be benefiting from more effective teaching and learning in general secondary schools. New teaching and learning materials will be provided to project schools and preschools and assessment of student learning will be carried out on a periodic basis with reports and public discussion of results. Teaching practices should also be improved as a result of new interactive School Based Teacher Training. Transparency, predictability, efficiency, and equity in school education financing is expected to improve through expansion of per capita financing.

***

Uzbekistan joined the World Bank in 1992. The World Bank’s mission in the country is to improve people’s livelihoods through being a partner in economic reforms, supporting the modernization of the country’s social sectors and infrastructure, and sharing its knowledge and experience with the government and the people of Uzbekistan.

Total World Bank commitments to Uzbekistan amount to about US$ 780 million.

***

For more information on the World Bank’s work in Uzbekistan, please visit: http://www.worldbank.org.uz

World Bank Managing Director to Visit Armenia, Georgia and Azerbaijan

Media advisory
For Immediate Release

TBILISI, October 15, 2009 - The World Bank Managing Director, Ms. Ngozi Okonjo-Iweala, will travel to Armenia, Georgia and Azerbaijan on October 17-21. The aim of her visit is to discuss with the respective governments, development partners and civil society the impact of the financial crisis in the South Caucasus and to find ways to help ease the crisis and enable sustainable economic growth. The World Bank is actively engaged in helping these countries address the challenges facing them.

“One thing that the crisis has taught us all is our interdependence. While this has added to the global nature of the current crises, it is also a source of strength for investment and growth. Working together with the governments, our development partners and civil society, the Bank is helping improve the lives of the people in the South Caucasus and elsewhere. Together, we can help ease the crisis and enable the countries embark upon a new trajectory of growth, development and social progress,” says Ms. Okonjo –Iweala.

In all three countries Ms. Okonjo-Iweala will meet with the country leadership, senior government officials, civil society and private sector representatives, and visit World Bank supported project sites. She will make a field trip to IDA Fast-Track Operation sites and meet with project beneficiaries in Armenia. As part of her program in Georgia, she will visit an IDP settlement, a road construction site and a primary healthcare facility. In Azerbaijan, she will co-chair a high level Economic Policy Forum, visit a cultural heritage site and meet with women leaders.

The World Bank recently launched Country Partnership Strategies (CPS) in Armenia (June, 2009) and Georgia (September, 2009) and is currently preparing one for Azerbaijan. The Strategy for Armenia is intended to assist the country in resuming growth and reducing the impacts of the financial crisis on the poor. It also aims to help Armenia lay the foundation for a more competitive economy for rapid post-crisis growth. The commitments to Armenia total approximately US$1.3 billion for 54 projects. The Georgia CPS prepared against the backdrop of twin crises – the August 2008 conflict followed by the global economic downturn – focuses on pressing post-conflict and vulnerability issues, and strengthening the foundations for competitiveness and growth in the future. The commitments to Georgia total approximately US$1.2 billion for 46 projects. The new CPS for Azerbaijan will build on the results and achievements of the current program that embraces investment operations for a total amount of US$2.2 billion. The new strategy will be prepared in close consultation with the government and civil society and designed to meet the country’s short and longer term priorities.

Please also find attached the Georgian version of Media Advisory and Dr. Ngozi Okonjo-Iweala's biography:

MediaAdvisoryGEO.pdf

WBManagingDirectorBio.pdf

______________

For information:
Armenia: Vigen Sargsyan vsargsyan@saleson@worldbank.org + 374 10 52 48 84
Azerbaijan: Saida Bagirli sbagirli@worldbank.org +994 12 92 19 41
Georgia: Inga Paichadze ipaichadze@worldbank.org +995 32 91 30 96

Kyrgyz Republic - Second Village Investment Project

Ukraine - Second Export Development Project

Kyrgyz Republic - Second Village Investment Project

Tajikistan - Cotton Sector Recovery Project : procurement plan

Launch Conference: Make Roads Safe Campaign Moldova

Safe Roads Campaign Moldova

Contact: Victor Neagu, tel: (+373 68) 254141
E-mail: vneagu@worldbank.org

safe raods campaign moldova Urgent Action is needed to combat the growing crisis of road deaths in Moldova. That is the message of a new campaign being launched today at the World Bank in Chisinau. The Make Roads Safe Moldova Campaign will bring together politicians, activists and specialists from throughout Moldova – along with international road safety experts - to find ways of making Moldova’s roads safe.

In 2008 in Moldova, 500 people lost their lives in road crashes and nearly 3,500 were injured. This represents an increase in fatalities of 30% and a 25% increase in those injured in just two years. The number of children killed on the roads more than doubled.

safe roads capaign moldova The Conference is being hosted by the World Bank with the support of the global Make Roads Safe Campaign. Public activities - initiated by the Automobile Club of Moldova and involving the Automobile Club of Transnistria - have already begun with the aim of raising public awareness of how to be a safe road user.

The Make Roads Safe Moldova conference involves key players on road safety in Moldova. Speakers include:

• Melanie Marlett - Country Manager for Moldova, World Bank
• Ms Liliana Palihovici MP - Commission for Health and Social Affairs
• Mr Dorin Chirtoaca - Mayor of Chisinau
• Governor Mihail Formuzal - Bashcan of Gagauz Eri
• Mr Calin Vieru MP - Ambassador for Make Roads Safe
• Lord Dubs of Battersea - Chair, the UK All Party Parliamentary Group on Moldova
• HE Keith Shannon - Ambassador of the United Kingdom to the Republic of Moldova
• HE Dr Asif Chaudhry - Ambassador of the USA to the Republic of Moldova
• John Dawson - Chairman, iRAP (the International Road Assessment Programme)
• Serghei Diaconu - President, Automobile Club of Moldova
• Andrei Stebunov - Executive Director, Automobile Club of Transnistria
• Emma MacLennan - Director, Eastern Alliance for Safe and Sustainable Transport

safe roads campaign moldova The conference will be an opportunity to discuss Moldova’s road construction programme and ensure safety is a high priority within these plans. It will also be an important prelude to the first United Nations Global Ministerial Conference on Road Safety taking place in Moscow in November to which Moldova is invited.

Speaking at the Conference Mr Calin Vieru MP, Ambassador for the Campaign, said "This conference is just the start of what will be a very active campaign. We must work together to save lives on Moldova’s roads."

Notes to media:

safe roads campaign moldova - The global Make Roads Safe Campaign is calling on the international community to recognise road traffic injuries as a global health epidemic. In 2008, as a result of the support of more than a million people around the world, the campaign secured UN approval for the first Global Ministerial Meeting on Road Safety which will be held in November 2009. See these links for further information:

http://www.makeroadssafe.org/Pages/home.aspx
http://www.1300000.net/

-The campaign is supported by the FIA Foundation for the Automobile and Society, an independent UK registered charity which manages and supports international activities promoting road safety, environmental protection and sustainable mobility, as well as funding specialist motor sport safety research.

Vacancy Announcement - Financial Management Analyst
The World Bank Office in Azerbaijan is seeking for Financial Management Analyst

The World Bank Office in Baku, Azerbaijan is looking for a Financial Management Analyst (FMA) with a bachelor degree in accounting, business, finance, economics, or relevant areas, and at least 3 years of directly relevant experience in financial management (FM). The Financial Management Analyst will be assigned to the World Bank Office in Baku, on a two-year term appointment. The Financial Management Analyst is part of the Financial Management team of the Europe and Central Asia Region in Operations Policy and Services Department (ECSPS) of the World Bank Office in Washington, DC.

The Financial Management (FM) unit advises and supports Regional Management and staff on financial management in operations. Specifically, the Financial Management unit is responsible for: (i) the fiduciary aspects of the Region’s overall lending portfolio, especially operational support and sound management in the area of financial management; (ii) policy advice to Government on financial management and accountability issues (in both public and private sectors); and (iii) capacity building to improve borrowers' financial management systems, including support for lending operations that focus on FM reform/development.

The Financial Management Analyst will work under the close supervision of a Financial Management Specialist (FMS) and/or the Regional Financial Management Manager (RFMM). He/She will assist the FM team in all FM aspects related to the World Bank’s operations in Azerbaijan, or as assigned by the RFMM. The Financial Management Analyst will contribute to the preparation and supervision of the funds administered by the Bank including loans and credits, project preparation facility advances, grants, project-related trust funds and other funds administered by the Bank ensuring compliance with the Bank’s audit and fiduciary requirements; and ensuring that the projects operations are carried out in accordance with sound financial management practices. The FM Analyst will perform as a member of the various Task Teams of the World Bank financed projects, and in addition leads special purpose initiatives.
Detailed Duties and Accountabilities, and Selection Criteria are available on vacancy announcement # 091748 at http:/www.worldbank.org/jobs.

Qualified candidates may apply on-line at http:/www.worldbank.org/jobs and choose vacancy # 091748. Please note that you will need to register before submitting your application. The closing date is 6:00 PM October 31, 2009. Questions may be directed to Ms. Gamar Usifova at Gusifova@worldbank.org Ref: 091748. Only shortlisted candidates will be contacted.

Annual Meetings Confirm Poland's Interest in Continuing to Access a Broad Range of World Bank Services and Lending

Istanbul, 8, October 2009 — The Polish delegation to the World Bank-IMF Annual Meetings in Istanbul confirmed their interest in continuing to access a broad range of Bank, including both analytic and advisory services and lending, the Polish government and World Bank announced today.

"The World Bank has re-emerged as an important partner for Poland, providing both financial and analytic support that can help to strengthen the sustainability and quality of growth and public finances,” said Deputy Finance Minister Jacek Dominik, who took part in the discussions in Istanbul. “We value the Bank's global knowledge and aim to continue this partnership in the coming years."

The discussion in Istanbul is in line with the new Country Partnership Strategy for 2009-13 between Poland and the World Bank endorsed by the Bank's Board on June 30. Currently, discussions are ongoing on a third Policy Loan, a line of credit for small and medium-sized enterprises to be intermediated through the Polish banking system, and lending to the City of Warsaw to support sustainable transport infrastructure development. These three operations could total close to Euro 2 billion. In parallel, work is ongoing to develop further both subnational and fee-based cooperation, in line with an increasing focus on analytic and advisory work and sophisticated financial services as market conditions normalize and private sector growth resumes.

"The World Bank is happy to be able to assist Poland through these difficult times in the context of relatively sound macroeconomic and financial sector fundamentals and looks forward to discuss further Poland's plans to reduce the fiscal deficit and stabilize public debt over the medium term," said Thomas Laursen, Warsaw-based World Bank Country Manager for Poland and the Baltic Countries.

For more information about the World Bank Group, please visit www.worldbank.org

Georgia - Additional Financing for First East-West Highway Project

Launch of World Bank Annual Report 2009: Year in Review

Dear Colleague,

I’m pleased to bring you The World Bank Annual Report 2009 direct to your computer. Our electronic dissemination of the report was adopted for your convenient access, to decrease our environmental footprint, and especially to reach more people like you who share in our mission to end poverty worldwide. Click your language of choice to read about the Bank’s efforts in fiscal 2009—and the formidable challenges we’re working hard to overcome as we help our members rise to a better quality of life:
Arabic, Chinese, English, French, Japanese, Portuguese, Russian, and Spanish.

We all know that the global financial and economic crisis is the greatest challenge, and will be for some time to come. The Bank has created new programs, fast-tracked funds from existing initiatives, and made record commitments to aid the most vulnerable during this emergency. At the same time, we have tended to our ongoing, long-term operations in climate change, health, infrastructure, and much more as we support efforts to achieve the Millennium Development Goals.

You’ll also read the inspiring stories of individuals we are proud to have assisted, and find multimedia components on the Annual Report Web site that provide more information about the Bank’s work.

So explore, learn, and enjoy. I encourage you to provide your feedback on the Annual Report and this dissemination method by emailing wbannualreport@worldbank.org. Thank you for your interest and your support.

Marwan Muasher
Senior Vice President, External Affairs

World Bank Annual Report 2009

World Bank and Eurasian Development Bank to Boost Cooperation

Press-Release: World Bank and Eurasian Development Bank to Boost Cooperation

WB Contacts:
Kristyn Schrader (90) 530-929-45-35
kschrader@worldbank.org
EDB Contacts:
Mikhail Mzareulov + 7 (495) 258 2763
mmm@eabr.org
Elena Serebrennikova + 7 (727) 244 6881
sep@eabr.org

Istanbul, October 7, 2009 -- The International Bank for Reconstruction and Development (IBRD) and the Eurasian Development Bank (EDB) will work more closely together to support sustainable economic and social development in their member countries under a Memorandum of Understanding signed today at the World Bank-IMF Annual Meetings.

Through the agreement, the two institutions will coordinate the preparation and implementation of technical assistance programs and development projects, and other instruments of cooperation. It was signed by Philippe Le Houerou, World Bank Vice President for Europe and Central Asia, on behalf of the IBRD, and Igor Finogenov, Chairman of the Management Board, on behalf of the EDB.

“The experience of the international financial institutions and in particular of IBRD as the oldest and most reputed such institution presents an invaluable insight for the EDB’s efficient work,” said Igor Finogenov of the EDB. “In this context, we envisage close coordination of our activities in the region of our responsibility at the country and selected projects level.”

Philippe Le Houerou of the World Bank said,“The global financial and economic crisis has literally hit home in many parts of Emerging Europe and Central Asia, so we are pleased to be partnering with the Eurasian Development Bank because such cooperation will benefit our member countries. The World Bank stands ready to continue playing its role in developing capacity in national and international development banks such as the EDB. Partnering strategically with institutions like the EDB and countries such as Russia and Kazakhstan helps us meet the needs of the region, particularly in the poorest countries.”

The International Bank for Reconstruction and Development (IBRD) aims to reduce poverty in middle-income and creditworthy poorer countries by promoting sustainable development through loans, guarantees, risk management products, and analytical and advisory services. Established in 1944 as the original institution of the World Bank Group, IBRD is structured like a cooperative that is owned and operated for the benefit of its 186 member countries.

The Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, economic growth and the expansion of trade and other economic ties in its member states. The Bank is open to new members, including both states and international organizations. Currently, the EDB has four member states – Armenia Kazakhstan, Russia, and Tajikistan. In December 2008 the EDB’s Council approved the membership of Belarus, while Kyrgyzstan is completing domestic government procedures required for joining the EDB.

World Bank is looking for consultants for the GPF Grant "Institutions of Accountability"

REQUEST FOR EXPRESSIONS OF INTEREST
(CONSULTANT SERVICES)

Russian Federation
GPF Grant "Institutions of Accountability"
Office of the Ombudsman for Transparent and Accountable Local Governance and Human Rights Protection at the Local Level

CONSULTING SERVICES: "Project Management"
TF No. 094325

The World Bank intends to apply part of the financing from the GPF grant for the project "Institutions of Accountability" for consultant services. The goal of the project is the creation of an innovative institutional space to support citizens activists participating in local self-government, helping them a) become more capable of defending their own rights and the rights of others, b) participate in the development and implementation of important administrative decisions, c) implement public control over the administration of municipal units and carry out monitoring of the quality of the services provided to the population, and d) act as mediators in conflict resolution between citizens and authorities through out-of-court procedures.

The four principle components of the project are:
1. Citizen participation in the implementation of local self-governance
2. Informing the population through modern means and strategies
3. Human rights education and protection
4. Mediation as a means of prevention and resolution of conflicts between citizens and authorities

Estimated duration of project implementation: November 9, 2009 - April 30, 2012.
Estimated duration of the contract - equivalent.

Services will include a range of project management activities throughout Perm Krai.

The project management firm will be responsible for finalizing the project strategy as well as creating and ensuring adherence to a timeline for project implementation. The firm will also coordinate implementation activities including the organization of trainings in the areas of human rights protection, mediation, and local governance. The firm will be responsible for liaising with project partners, both in Russia and internationally, including representatives of local self-governance, governmental bodies, and public organizations. It will also be responsible for the creation and publication of reports and other project materials, as well as their distribution. The firm will also be responsible for organizing project-related travel, supplying secretarial and translation services, and procuring for the centers the human and civil rights information and training and methodological materials necessary for the successful realization of all aspects of the project.

In addition, the project management firm will be responsible for working with the media and the development and distribution of informational materials for each project component. Excellent command of written and spoken English by key firm employees, who will collaborate with the World Bank and other international partners, is a necessary qualification for participation in the project.

The World Bank now invites eligible consultants to indicate their interest in providing the services. Interested consultants must provide information indicating that they are qualified to perform the services (brochures, description of similar assignments, experience in similar conditions, availability of appropriate skills among staff, etc.). Consultants may associate to enhance their qualifications.

A consultant will be selected in accordance with the procedures set out in the World Bank's Guidelines: Selection and Employment of Consultants by World Bank Borrowers (current edition).

Interested consultants may obtain further information at the addresses below during office hours.

Expressions of interest must be delivered to the addresses below by October 23, 2009.

World Bank, Washington Office
Attn: Dylan Myles-Primakoff
600 19th St. NW
Washington, DC 20006, USA
Tel: +1-202-473-6837
Fax: +1-202-477-3285
E-mail: dmylesprimakoff@worldbank.org
www.worldbank.org

C/C World Bank, Moscow Office
Attn: Svetlana Avakyan
36/1 Bolshaya Molchanovka St,
121069 Moscow, Russia
Phone: +7-(495) 745-7000 ext.2086/3086
Fax: +7-(495) 745-7002
E-mail: savakyan@worldbank.org
www.worldbank.org.ru

“The World Bank Group Beyond the Crisis”

Annual Meetings

Board of Governors of the World Bank Group

Remarks of

Robert B. Zoellick

President

The World Bank Group

Istanbul, Turkey

October 6, 2009

“The World Bank Group Beyond the Crisis”

Mr. Chairman, Governors, and Distinguished Guests:

Thank you for joining us at these Annual Meetings. I want to express my particular thanks to the Chairman of the Board of Governors, Nguyen Van Giau, and to Agustín Carstens for his leadership of the Development Committee. Agustín and I have worked ever more closely over the last two years. I have deep respect for his skills as a Minister and as a thoughtful leader, and benefited greatly from his partnership and friendship. This is Agustín’s last meeting as Chair of the Development Committee, although I know I will wish to call on his advice and judgment in days to come.

I look forward to working with Minister Al-Khalifa of Bahrain, who has graciously agreed to assume the Chair of the Committee. Minister Al-Khalifa and I have worked together in earlier capacities, and I am delighted he has agreed to join us at this critical time.

I also want to thank my colleague Dominique Strauss-Kahn. Our two institutions have partnered closely over the last year, and I have much appreciated his insight, practicality and good humor.

I am grateful too, to the Turkish Government and the people of Turkey, who have been exemplary hosts for our Annual Meetings this year. We have enjoyed seeing this fascinating city in a country that has accomplished so much. Most of all, we thank the wonderful people of Istanbul and Turkey.

I would like to take this opportunity to recall former World Bank President Robert McNamara. He led and shaped the Bank for 13 incredible years. He brought to this institution enormous energy along with the firm belief that the problems of the developing world could be solved. He left behind him a formidable record: the effort to eradicate and prevent river blindness; the Bank’s first loan for nutrition; a focus on the rural poor; increased lending to agriculture; the publishing of the first ever World Development Report; and the opening of relations between the Bank and China at a crucial time in that country’s development – a reflection of both his foresight and leadership.

Robert McNamara shifted the focus of the World Bank Group toward the goal of overcoming poverty worldwide. It remains our core mission today, and ensures that Mr. McNamara’s legacy in international development – and to the World Bank Group – lives on.

In his final years, when I spoke to Mr. McNamara, he remembered fondly the tremendous staff of the World Bank Group, a true collection of talents across cultures and lands. His successors have expressed the same appreciation. I want to add my thanks to theirs. The people of the World Bank Group have risen to the challenge of crisis over the last year – with energy, creativity and strong sense of purpose for the client countries and people we are privileged to serve.

We are also saddened by the recent passing of Minister Futa of the Democratic of Republic of Congo. I would like to join the Chairman in extending my condolence to his family and the government of DRC.

I would also like to express my deepest sympathies to the family of the former Finance Minister of Japan, Mr. Nakagawa.

***** ***** *****

A year ago, we came together at a time of turmoil. Today, that turbulence is far from over.

As a result of the global crisis, we estimate that 90 million more people will be living in extreme poverty by the end of next year; up to 59 million more people will lose their jobs this year; and an additional 30,000 to 50,000 babies may die in Sub-Saharan Africa.

Behind these numbers lie human stories:

-- Aoy Puon is a garment factory worker in Cambodia. Since the crisis hit, her monthly salary has been cut in half. Today she can’t make enough to send money home to her family who depend on her income. 48 garment factories have had to close in Cambodia over the past year, and 62,000 workers have lost their jobs – 90 percent of them women. Aoy is now worried that she will lose her job.

-- Zagd is a herder in Mongolia, where the financial crisis has caused livestock prices to plummet. Meanwhile, food costs increase daily, so Zagd can no longer afford to buy flour, rice, or sugar. For herders like Zagd, there is no pension or social benefit money – instead, with decreased income, the only recourse is to cut consumption. As one herder says, “I do not buy sugar because it is expensive. We do not use vegetables. We do not go out, therefore we do not need many clothes…In the winter time, we do not buy wood and coal.”

-- Lindiwe is 28 and lives in a shanty town in southern Africa. She's HIV positive and has TB. She was turned away from the NGO clinic that provides treatment for these diseases, because donor funding has dried up as a result of the financial crisis, and the NGO has run out of drugs. Prospects for additional funding look bleak: a recent World Bank and UNAIDS survey found that 1 in 5 developing countries have experienced cutbacks on anti-retroviral treatment programs, and 33 countries expect the impact to worsen over the next year. For Lindiwe, time is running out: "I am scared of dying and leaving my little girl alone," she says.

Jobs lost and lives destroyed. Girls forced out of school. Families who need to decide which meal to cut out of their day. Children malnourished. Human progress reversed, often irretrievably.

While we talk of recovery, the personal pain of poverty is all around us.

In cities, villages, valleys, and plains; on Main Streets and communities with no streets we hear a common refrain: “Don’t let this happen again.”

Sadly, we cannot make that promise. We cannot crisis-proof our world. Indeed, if there is one thing that is assured about the future, it is that there will be another upheaval. But with leadership and cooperation, we can learn lessons from the past crisis, and we can look ahead.

We need to look beyond emergency response, to actions to “build back better” -- actions that can endure. That work is up to us in this room. Cooperation at times of crisis is the easier part. Cooperation when no longer staring into the abyss is the challenge.

Seeds of Crisis

Before looking to the future, we need to understand the past. Today’s upheaval did not occur from nowhere. The seeds were planted earlier.

The last 20 years have witnessed a huge economic shift. The breakdown of the planned economies in the Soviet Union and Central and Eastern Europe, the economic reforms in China and India, and the export-driven growth strategies of East Asia all contributed to a world market economy that vaulted from about 1 billion to 4 or 5 billion people. This shift offers enormous opportunities. But it has also shaken an international economic system forged in the middle of the 20^th Century, with patched-up changes in the decades since.

Some seeds of today’s troubles were sown by the responses – or lack of them – to the financial crises of the late 1990s. After the Asian financial crisis, developing countries determined they never again wanted to be exposed to the tempests of globalization. Many “insured” themselves through managing exchange rates and building huge currency reserves. Some of these changes contributed to imbalances and tensions in the global economy, but for years governments muddled through amidst generally good growth.

Central banks failed to address risks building in the new economy. They seemingly mastered product price inflation in the 1980s, but most decided that asset price bubbles were difficult to identify and to restrain with monetary policy. They argued that damage to the “real economy” of jobs, production, savings, and consumption could be contained once bubbles burst, through aggressive easing of interest rates. They turned out to be wrong.

Regulators and supervisors of financial institutions were no longer grounded in reality. Financial innovation and competition vastly expanded services – including to companies and families often shunted aside in the past – but the alluringly simple design of “rational markets theory” led regulators to take a holiday from the realities of psychology, organizational behavior, systemic risks, and the complexities of markets and humans.

Even as we learn these harsh lessons, we need to anticipate and build.

In 1944, the delegates at Bretton Woods seized a moment to shape a new global arrangement. They spent three weeks in New Hampshire developing a system of rules, institutions, and procedures for financial and commercial relations in the world economy.

That world has changed enormously over the past 65 years. The current upheaval is changing the landscape yet again.

Already, we can see potential shifts in power and institutions and international cooperation. In part, the shifts will depend upon how the parties adapt to new circumstances; in part, upon the rapidity of the recovery; in part, upon changes in who holds the world’s capital, technology, and human resources and what they do with them; in part, upon how countries cooperate – or do not.

The Changing Context

Just over 10 years ago, during the Asian financial crisis, the world’s primary concern was whether China would hold its currency peg to help stabilize the falling economic dominoes. Today, China ranks with the world’s major economies and acts as a stabilizing force in the global economy. Together, China and India account for 8.5 percent of world output. They and other developing countries are growing substantially more rapidly than developed countries.

The United States has been hit hard by the crisis. But it is a resilient nation. Its future will depend on whether and how it will address large deficits, recover without inflation that could undermine its credit and currency, and overhaul its financial system to preserve innovation while adding to safety and soundness. The United States also needs to help people adjust to change, so that it can maintain its greatest trump card: openness to trade, investment, people, and ideas.

Japan is the first leading industrial power to experience a political upheaval in the wake of the crisis. The election of the Democratic Party of Japan could create a sustainable two-party democracy for the first time in the country’s history.

It is not clear that the old export model of growth will meet Japan’s and the world’s needs or be sustainable in a more “balanced” global economy that does not rely so heavily on the U.S. consumer. An aging Japan will have new consumption needs. A global economy with more poles of growth could offer Japan new markets, especially for its impressive capabilities to use energy efficiently.

Central and Eastern European economies suffered strong blows. And their problems are far from over. The good strategic news is that the European states, for all their internal debates and negotiations, have recognized their interdependence. Under stress, this time, Europe did not splinter.

South East Asia may also have been given a boost by the crisis – depending on how opportunities are seized. The region lies at a geographic crossroads between India and China, two rising powers. ASEAN seems to have recognized the moment, and has taken actions to deepen its integration even while reaching out to others. Given the sizeable weight of Indonesia and the rising influence of Vietnam, their sound performance amidst economic turmoil has stood in sharp contrast to a decade ago.

For others, the long-term impact of the crisis may depend upon commodities, especially oil prices, which, in recent years, gave high returns. When the oil price is at $100, these countries are strong. When it is at $30, most are in serious trouble. This reliance on oil and commodities is a precarious basis upon which to build an economy in a world that is struggling to reduce its reliance on fossil fuels, and in which commodity prices gyrate as investors move in and out of an “asset class.” Will countries use these returns wisely – to diversify and build broader-based economic development? These are the questions for Russia, countries in the Gulf, and some countries in Latin America and Africa.

Prior to the crisis, the growth rates of a number of African countries were achieving impressive levels with consistency. Coming out of the crisis, there could be new opportunities. Some Chinese manufacturing firms are considering shifting their basic production to Africa. China’s African prospects – which include resource development and infrastructure – are likely to be complemented by others. Brazil is interested in sharing its agricultural development experience. India is building railways. These are the early days of a trend that will build.

Understanding shifting power relations is fundamental for shaping the future -- as the Bretton Woods’ delegates appreciated. The political basis for that system was forged through a shared experience in failed responsibility after World War I and a clear assessment of power after World War II. Change those power relations -- and the nature of the markets that connect them -- and the system looks out of touch.

What Next: Responsible Globalization?

The old order is gone. We should not waste our time and tears lamenting it. Today we must build anew. Today we can put in place the foundations for a “New Normal” of growth and responsible globalization.

Globalization has helped sustain high economic growth in many countries and lifted hundreds of millions out of poverty. Yet the growing linkages between economies have also played a central role in turning a financial crisis in the developed world into a global crisis that is driving millions back into poverty. The pace of climate change is accelerating, with poorest countries hardest hit. Diseases such as SARS in 2004, or this year’s H1N1 virus, start as localized outbreaks but quickly become global threats. Their virulence has only been intensified by increased travel and open borders.

We cannot and should not turn the clock back on globalization. Nor are publics demanding that we do so. But we can and must reform it to curb the damage it can wreak while expanding the enormous benefits that responsible globalization can provide to millions.

What Would it Take to Build Responsible Globalization?

First and foremost, we must recognize that developing countries are key to the solution today, progress tomorrow, and prosperity in years to come.

Two weeks ago, in Pittsburgh, world leaders embraced the G-20 as the premier forum for international economic cooperation among the advanced industrialized countries and rising powers. This is a good start. But the G-20 cannot be a stand-alone committee. Nor can it ignore the voices of the over 160 countries left outside. The G-20 should operate as a “Steering Group” across a network of countries and international institutions with a broader membership. It should recognize the interconnections among issues and foster points of mutual interest, without being either hierarchical or bureaucratic. It should be connected to our G-186 here in this room.

Forecasters expect lackluster growth and continued high unemployment for a number of years. The U.S. consumer can no longer be the main engine of economic demand. Europe and Japan appear constrained; China can assist, but its credit growth could pose problems next year. With access to finance, other developing economies can help boost a global recovery. Many have the fiscal space to borrow, but cannot get the volumes they need at reasonable prices without crowding out their private sectors. The World Bank Group and regional development banks can assist. Enhanced financial regulation and supervision that shift incentives from short-term casino capitalism to long-term productive investment will help.

Second, leaders must emphasize that a balanced and inclusive global economy needs multiple poles of growth – and not just adding China and India. Countries in Latin America, Southeast Asia, and a wider Middle East can assist in the future if they invest today. Over time, investments in Africa, a market of almost a billion people, can integrate its markets and become another source of growth.

To build multiple poles of growth, we need to remove bottlenecks and boost productivity through investments in infrastructure and energy, private sector expansion, and regional integration linked to open markets. New poles of growth can be customers for the capital goods, services, and technology of developed countries.

Third, leaders must commit to making growth sustainable. As the World Bank’s recently released World Development Report on development and climate change points out, developing countries not only face 75-80 percent of the potential damage from climate change, but over 1.6 billion of their people still lack access to electricity. Developing countries – and their interests – must be at the table. They need incentives and financing to encourage low carbon growth by adopting technologies, implementing energy efficiencies, and investing in forestation.

Fourth, we must put in place mechanisms to protect the most vulnerable. Two weeks ago at the Pittsburgh Summit, the G-20 leaders re-iterated their support for a new $20 billion food security initiative launched at Italy’s G-8 meeting. They called upon the World Bank Group to work with donors and organizations to develop a multilateral trust fund to scale-up agricultural assistance to low income countries. Too often, bilateral aid concentrates resources in specific sectors and countries. But with this more comprehensive, multilateral approach we can pool resources and better support innovative efforts to tackle food security all the way along the food chain and build sustainable agricultural systems. Paper pledges, however, will not put seeds in soil or food in hungry mouths. Hunger and famine – as the present drought in East Africa shows – are an ever-present threat. So we must move quickly to turn this initiative into reality.

Food, fuel, and now financial crises have derailed progress towards the Millennium Development Goals, reversing years of gains. We must fill a gap in the global financial architecture by offering insurance to the poorest countries that they will not be left defenseless in the face of overwhelming shocks. The World Bank Group will work to flesh out the proposal for a Crisis Response Facility, endorsed by the G-20 and the Development Committee, that can be ready to offer quick and effective assistance for the most vulnerable and fragile countries, many of which are just emerging from conflict. From targeted safety nets to SMEs and microfinance, we can help buffer those with the least cushion from the greatest upheavals.

We must also work toward a hand-off from government stimulus to private sector demand, investment, and trade, by offering a counterweight to financial and trade protectionism. IFC has just launched a new Asset Management Corporation that manages funds to invest in banks, equity, infrastructure, and debt restructuring. We can help build developing country financial markets, while channeling capital from sovereign, pension, and other asset management funds to productive private sectors in developing countries.

The Role of the World Bank Group

Last year, the Bank Group stepped up to the crisis and delivered a record $59 billion of financial assistance. IBRD commitments almost trebled to $33 billion. IDA also reached a record high of $14 billion; over 50 percent of new IFC projects were in IDA countries. Support for infrastructure – critical to recovery and jobs – reached $21 billion; we scaled up assistance of $4.5 billion for safety nets and other social protection programs to cushion the most vulnerable.

IFC combines strong innovation with resource mobilization; we have launched initiatives on bank capitalization, trade finance, infrastructure, and microfinance.

We expect a new IBRD record of $40 billion or more this fiscal year. Demand for IBRD lending is now clearly moving significantly beyond the $100 billion level that the Development Committee called for in its Communiqué last year. IDA countries are also facing significant financing gaps. We estimate that financing shortfalls to cover at-risk core spending on health, education, safety nets, and infrastructure amount to some $11.6 billion for the poorest countries.

I know that budgets in developed countries are constrained. But responsible globalization requires responsible stakeholders. We can and must do more.

What is the Role for the Bank Group in a New Post-Crisis World?

A well capitalized World Bank Group would be positioned to play a leading role in the global response to the challenges of globalization, development, and financial crisis.

We have a global, local, and cross-sectoral presence with the skills to work with public and private sectors, middle income and low income countries. We have a repository of global best practice in development that we continually upgrade; world-class risk management and banking competencies; and the capabilities to leverage our balance sheet. We have a leadership role in the growing global public goods agenda, and a worldwide catalytic and convening power. All these factors make the World Bank Group unique among the multilateral development banks.

Four key drivers are likely to shape the Group’s post-crisis role:

Driver 1 will be traditional and innovative development finance. There is strong demand from the Bank Group’s clients for the institution to come out of the crisis well-capitalized and to be able to sustain the delivery of a critical mass of financing to support global economic growth and to overcome poverty. The World Bank Group can play this role in several ways. We can contribute to fiscal stimulus and protecting core spending in countries that are not in a position to implement counter-cyclical policies; we can help to boost global demand to support global recovery; we can finance and support trade; we can assist the private sector to assume the critical handoff from the governments’ crisis response actions; and through investment, we can help to build multiple poles of growth with responsive, accountable public sectors and dynamic private sectors.

The second driver will be delivering knowledge products. The Bank Group is a repository of global best practice in development, combining implementation experience, research, and learning, drawing on both public and private sectors. As such, clients are looking to us to connect and customize multiple sources of practitioner knowledge and innovation.

The third driver is the global public goods agenda – pressing global challenges such as climate change, and communicable diseases that require an institutional response that is multi-sectoral, combining policy advice and investments with a global reach grounded in country programs. Already the Bank Group is mobilizing significant financing through the Climate Investment Funds. We can play a key role in technology transfer, working with clients on low carbon growth strategies, and in strengthening health systems where we are now scaling-up our work. The Bank Group can also support the public goods of resilient and dynamic trading and financial systems, based on multilateral rules.

The fourth driver is future crises – those that we can’t foresee today but know will happen: it might be a pandemic, a natural or man-made disaster, or an economic or social crisis. In response, the Bank can mobilize its full range of skills and instruments for the benefit of its shareholders, as it has done recently in the food crises, or in response to the Indian Ocean tsunami or financial crises in Mexico and East Asia.

The World Bank is pursuing a number of financial measures to make the most of our capital, including a loan price increase; working with countries so we can use the shares they purchased with national currencies; a selective capital increase linked to changes in “voice”; tight budget discipline; and a possible increase in pricing for longer maturity loans. These measures emphasize the mutual responsibilities and contributions of all our members. But they may not be enough. If the IBRD continues its lending at the current rate, by mid-2010 it will be capital constrained. IFC is limited now.

Of course the future is uncertain. If the recovery falters, or simply struggles slowly, should we risk a World Bank Group already stretched to the limit and unable to lead? In the face of the next crisis – another food emergency, the next epidemic – can we afford to have a World Bank Group that has to hold back? I thank the Development Committee for committing yesterday that it will ensure that the World Bank Group has sufficient resources to meet further development challenges, and that it will reach a decision on this issue by Spring 2010. This is an important step forward in the first General Capital Increase for the World Bank in twenty years.

The Reform Agenda

To serve the changing global economy, the world needs agile, nimble, competent, and accountable institutions. The World Bank Group will improve its legitimacy, efficiency, effectiveness, and accountability, and further expand its cooperation with the UN, the IMF, the other Multilateral Development Banks, donors, civil society, and foundations which have become increasingly important development actors. We know well the importance of advancing multiple reforms to address shareholder requests, improve performance, and build support with your legislatures.

Our efforts include:

· Improving development effectiveness, with a focus on the results agenda, decentralization, gender, investment lending reform, and human resources;

· Promoting accountability and good governance, including with our global anti-corruption efforts, an improved transparency and disclosure policy, and the soon-to-be-released recommendations of the Zedillo Commission; and

· Continuing to increase cost efficiency.

But we must go further.

The Bretton Woods system was forged by 44 countries at a time when power was concentrated in a small number of states. The great waves of decolonization were just stirring; the few developing countries were seen as objects, not subjects, of history. That world is long passed. The new realities of political economy demand a different system.

If developing countries are part of the solution, they must also be part of the conversation. The international system needs a World Bank Group that represents the international economic realities of the 21^st Century, recognizes the role and responsibility of growing stakeholders, and provides a larger voice for Africa.

The first phase of the reforms to enhance the voice and representation of developing and transition countries in the Bank Group was completed a year ago, with an additional Board seat for Sub-Saharan Africa and an increase in the voting power of developing countries at IBRD to 44 percent. I am pleased that yesterday the Development Committee stressed the importance of securing a further increase in voting power for developing countries of at least an additional 3 percent – bringing developing countries to at least 47 percent, for final decision at our Spring Meetings next year. We must continue to be ambitious. We should try to see if we can increase the share of the developing countries toward 50 percent over time, even as the emerging economies share the responsibilities of assisting poorer countries with their development. The World Bank Group should more accurately reflect the world around us.

Conclusion

Mr. Chairman: The old international economic order was struggling to keep up with change before the crisis. Today’s upheaval has revealed the stark gaps and compelling needs. It is time we caught up and moved ahead.

We need a system of international political economy that reflects a new multipolarity of growth. It needs to integrate rising economic powers as “responsible stakeholders” while recognizing that these countries are still home to hundreds of millions of poor and face staggering challenges of development. It needs to engage the energies and support of developed countries, whose publics carry the heavy burdens of debt, competitive anxieties, and feel that the new powers must share responsibilities. It needs to help offer a hand to the poorest and weakest countries, the 900 million people who still live without access to safe water, and the “Bottom Billion” trapped in poverty because of conflict and broken governance.

Yet it won’t happen by itself.

The question is whether leaders can cooperate in steering these changes. They will be drawn to the interests of the national publics they represent, as they should. Yet they will also be challenged to recognize and build common interests, not only case-by-case, but through institutions reflecting a “Responsible Globalization.”

Bretton Woods is being overhauled before our eyes. This time, it will take longer than three weeks in New Hampshire. It will have more participants. But it is just as necessary. The next upheaval, whatever it may be, is taking form now. Shape it or be shaped by it.

World Bank reforming to meet new challenges, Zoellick says

Contacts:

In Istanbul:

David Theis

(202) 203-0601

dtheis@worldbank.org

ISTANBUL, October 6, 2009 – The World Bank is pursuing an ambitious program of reform to enable the institution to become more efficient and effective while also gaining more legitimacy among the developing countries that it serves, World Bank Group President Robert B. Zoellick said.

In a speech at the start of the Annual Meetings of the World Bank and International Monetary Fund in Istanbul, Turkey, Zoellick said the World Bank’s reforms would focus on improving development effectiveness, promoting accountability and good governance, and continuing to increase cost efficiency.

“To serve the changing global economy, the world needs agile, nimble, competent, and accountable institutions,” Zoellick told the meeting of the Board of Governors of the World Bank Group. “The World Bank Group will improve its legitimacy, efficiency, effectiveness, and accountability, and further expand its cooperation with the UN, the IMF, the other Multilateral Development Banks, donors, civil society, and foundations which have become increasingly important development actors.”

Zoellick noted that when the World Bank was established in 1944, the world was different from today. The institution was formed by 44 countries whereas its membership today stood at 186. The developing countries of today were mostly still colonies. This system had long passed and the political economy of the 21st century demanded a changed order that reflected the growing role of developing countries. They were now a source of potential economic growth that could lead to a more balanced world economy.

“If developing countries are part of the solution, they must also be part of the conversation. The international system needs a World Bank Group that represents the international economic realities of the 21st Century, recognizes the role and responsibility of growing stakeholders, and provides a larger voice for Africa,” Zoellick said.

The World Bank’s shareholders supported reforms that would give developing countries at least 47 percent of the voting shares in the institution. Zoellick said shareholders should go beyond this to achieve a 50 percent share for developing countries.

Reform was inevitable as the world was changing so quickly, Zoellick said. “The old international economic order was struggling to keep up with change before the crisis. Today’s upheaval has revealed the stark gaps and compelling needs. It is time we caught up and moved ahead.”

The High Level Commission chaired by former Mexican President Ernesto Zedillo, which Zoellick set up last year to look at more far reaching reforms of World Bank governance, is expected to submit its report later this month.

-#-

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IFIs pledge continued drive to support Central and Eastern Europe through recovery

The World Bank

Europe and Central Asia Region

News Release No. 2008/ECA

Contacts: Washington: Michael Andrew Jones (202) 473 2588
mjones2@worldbank.org

text text text

Reforms are Necessary with or without the IMF and the World Bank

Contact in BH:

Jasmina Hadžić (+ 387 33) 251-502
jhadzic@worldbank.org

ISTANBUL, October 5, 2009 – World Bank management from Europe and Central Asia department (ECA), met with the delegation of Bosnia and Herzegovina (BH) led by Prime Minister Špirić in Istanbul on October 3-4 on the occasion of the Annual Meetings of the World Bank and the International Monetary Fund (IMF), to discuss the status of the economy and of the World Bank supported programs in BH.

The world is dealing with the effects of the worst recession since World War II. Its impact has been felt no more severely than in the Eastern and Central Europe, where talks of any recovery are still very premature. And BH is no exception. In Istanbul, the World Bank management commended the BH authorities for designing measures to stabilize budgets and cope with the impact of the global economic crisis. These measures, described in the letter of intent (LOI) sent to the IMF, allowed BH to obtain financial commitments from the IMF and other international financial organizations, including the World Bank.

“It is of paramount importance that BH fully implements the measures it has committed to pursue under the Stand-By-Arrangement with the IMF. Failure to do so would give a serious blow to the country’s credibility, the chances of a fast recovery, and would seriously endanger public finances, including transfers for the most vulnerable categories”, said Jane Armitage, the Country Director for the Southeast Europe group of countries.

The projected budget deficit in 2009 would amount to about 2 billion KM if no measures had been introduced to reduce it, and the World Bank delegation stressed the fact that - like in almost every other country of the world in these days – BH has some hard choices to make to balance expenditures with available resources, promote economic growth and protect the most vulnerable. In the LOI the authorities committed also to work to improve the equity of public spending in cash-transfers for social and veterans programs – following the principle that more funds should be provided to beneficiaries who are most in need - in a transparent and sustainable manner.

“These reforms are necessary, now more than ever in a country with one of the highest levels of expenditure on these benefits as percentage of GDP in Europe and Central Asia region. Reforms are necessary with or without the IMF and the World Bank – said Jane Armitage. Leaving things as they currently are, is not only unsustainable, but, also, unfair. A larger share of funds spent on social and veteran programs benefits the richest fifth of the population than the poorest fifth”.

The WB delegation confirmed its commitment to work on these reforms with the authorities for the successful negotiation of a Development Policy Loan of about US$100 million and related technical assistance. However it reiterated that approval of this financing is subject to the prior adoption of legislation in support of these reforms in both Entity parliaments.

IFIs pledge continued drive to support Central and Eastern Europe through recovery

World Bank Group Private Sector Leaders Forum Announces New Measures to Improve Women’s Economic Opportunities

Contacts:

In Washington: Alejandra Viveros 1 (202) 473-4306

Aviveros@worldbank.org

ISTANBUL, October 4, 2009 –World Bank Group President Robert B. Zoellick and Managing Director Ngozi N. Okonjo-Iweala met today with global business leaders in order to continue expanding economic opportunities for women worldwide. At an event co-hosted by the Hüsnü M. Özyeǧin Foundation in the margins of the World Bank-IMF Annual Meetings, the leaders discussed the impacts of the ongoing economic crisis on women, and announced new partnerships to support women around the world.

“At this time of economic turmoil, investing in women is critical,” said Mr. Zoellick at the meeting. “A host of studies suggest that putting earnings in women’s hands is the intelligent thing to do to aid recovery and long-term development. Women usually reinvest a much higher portion of their earnings in their families and communities than men, spreading wealth beyond themselves.”

In the meeting of the global Private Sector Leaders Forum, comprised of 21 companies committed to promote women's economic empowerment, the leaders talked about the need to protect women from the adverse effects of the economic crisis, and shared experiences on successful programs designed to support women’s economic opportunities in key areas, such as targeted lending programs; inclusion and diversity initiatives to promote women into corporate leadership roles; and the training of business women in developing countries.

Highlights of new partnerships and initiatives announced at the event include:

- The Ozyegin Foundation and Goldman Sachs will expand the Goldman Sachs 10,000 Women program to Turkey.

- Boeing announced Forum member efforts to track and spend $2 billion over the next three years on goods and services from women-owned businesses in supply chains.

- Belcorp announced a partnership with the World Bank to train 50,000 women in financial literacy in Latin America.

- McKinsey presented their new research, “The Business of Empowering Women,” which maps out potential business sector contributions across women’s life cycles.

According to the participants, these initiatives are crucial as the world sets about rebuilding economies around the world. Research shows that during economic crises, girls are the most likely to be withdrawn from school and be put to work to help their families. And adult women face the risk of suffering disproportionately from the jobs lost since they constitute between 60 and 80 percent of export manufacturing workers in developing countries, a sector expected to shrink due to fall in demand.

“Women and girls need to be protected because they are suffering disproportionately from the economic recession,” said World Bank Managing Director, Ngozi N. Okonjo-Iweala. “But more importantly, women can be the engine for recovery. If done right, we can emerge from the crisis with healthier growth and be on a faster track to reducing poverty and boosting development." Investing in improving women’s lives is critical,”

The Private Sector Leaders Forum is a public-private partnership between the World Bank Group and some of the world's leading private sector companies. The partnership supports the World Bank Group’s Gender Action Plan to promote women's economic empowerment and gender equality.

Launched in January 2008 during the World Economic Forum in Davos, the Forum is comprised of:

Eduardo Belmont, President, Belcorp
Lloyd Blankfein, Chairman and CEO, The Goldman Sachs Group, Inc.
Henryka Bochniarz, Vice President of Boeing International and President of Boeing Central and Eastern Europe, Boeing
Frank J. Brown, Dean, INSEAD
John T. Chambers, Chairman & CEO, Cisco
Kristin Clemet, Chair, Company: Norfund
Samuel A. DiPiazza, CEO, Company: PricewaterhouseCoopers (PwC)
Rick Goings, Chairman and Chief Executive, Tupperware Brands Corporation
Kevin L. Kelly, CEO, Heidrick & Struggles
Sung-joo Kim, Chairperson & CEO, Sungjoo Group/MCM Group
Yang Lan, CEO, Sun Media Investment Holdings LTD
Wendy Luhabe, Founding Member, Women Private Equity Fund
Marilyn Carlson Nelson, Chair, Carlson
Hüsnü M. Özyeǧin, President, Hüsnü M. Özyeǧin Foundation
Lynn Taliento, Partner, Washington DC Office, McKinsey & Co.
Elena Viyella de Paliza, President, Grupo Inter-Quimica, S.A. Monte Rio Power Corp.
Nitin Paranjpe, CEO and MD of the Hindustan Unilever Ltd & Group Vice President of Unilever in South Asia
Mark Parker, President & CEO, Nike
James S. Turley, Chairman and CEO, Ernst & Young
Mona Zulficar, Senior Partner and Chair of the Executive Committee, Shalakany Law Office

To get more information on the World Bank’s work on gender, please visit: www.worldbank.org/gender

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