YVG BiH brochure

The WB on language of
youth
 Goal and structure

Explain youth, on simple language, activites of the

World Bank in BiH

Main
topics

The Bosnia CPS

World Bank and strategy
Herzegovina
 Content
1. Front page
2. Inner page (Back-side of the Important note:
front page) We’ll hire graphical
3. Family tree, why borrow designer for design of this
money and comparison WB- brochure
IMF
4. CPS or what has to be
done...
5. CPS diagram
6. Problems and challenges
7. Problems and challenges-
2nd part
8. Indicators and analytics
9. Indicators and analytics- 2nd
part
10. Platform for action
11. Message to the youth…
(Not finished yet)
 1. Front page

• Reconstructed plants
• 1100 km of rehabilitated roads
• 25000 living units reconstructed
• Help with the reconstruction of the Old
bridge in Mostar
• 82 schools have been restored
• 44 medical centers equipped
• 200.000 small loans given to people
• Reformed banking sector
 2. Inner page (Back-side of the
front page)

HELLO (words of greeting and introduction)

Introduction to the World Bank (WB)

• It was established 1944 in Bretton Woods, USA, together
with the International Monetary Fund (IMF)
• 184 country members
• Its first task was to help Europe recover from World War II
• WB mission: „To fight poverty with passion and
professionalism for lasting result“.
 
A common misunderstanding is that the WB is a commercial
bank...
• The World Bank works in partnership with governments
• The World Bank does not lend money to people or
companies; it lends money to the state
 3. Family tree, why borrow
money and comparison WB- IMF
Why borrow money from the World Bank?
• The WB lends money on terms that are IBRD

more favorably than commercial banks

• It borrows money to the poorest ICSID IFC

countries to which no other institution WB

would.
• Beside the money, the WB offers its
MIGA IDA
clients knowledge in social and economical
development. It also creates development
strategies in partnership with the
The World Bank and the International Monetary Fund (IMF) have
government.
completely
  different goals:
The WB lends money only to developing and transition countries,
while the IMF offers its services to all countries, rich or poor.
WB focuses on long-term, while the IMF focuses on short-term
economic development goals.
WB works on broad development programs. The IMF is focused on
exchange stability of currencies.
 4. CPS or what has to
be done...
Graphic: How the CPS is
created (project cycle)

• Since opening its office in BiH, the WB has created and implemented
several development strategies. They strategies have changed
according to situation in the country.
• The situation has been changing and the corresponding help and
cooperation level between WB and BiH followed.
• The first strategy was Reconstruction Assistance Program (RAP), the
second one is the Country Assistant Strategy (CAS), and today it is the
Country Partnership Strategy (CPS)
• During the post-war period BiH successfully fulfilled the expectations
from the first strategy. In the period of the second strategy the
performance was moderately satisfactory.
• BiH has not implemented many of the projects for which money was
approved, so that money was lost ( for example a credit of 12 million
for the education was lost because of the lack of will for the reform of
higher education)
• A major problem is that the projects, for which money was approved,
are waiting too long for realization.
 4. CPS or what has to be
done (2)...

Up to this date and the new Country Partnership Strategy (2008- 13)
money was approved to BiH with great confidence. Because of the
inefficiency of the government this approach is going to change. In
the future, approval of funds will depend on political will of BiH
politicians and the project implementation closely monitored. The only
criteria for fund approval will be results of the country which is also
YOUR responsibility.
The CPS is very flexible, and if a project is not successful, the money will
be redirected to another project. The goal of the CPS is greater
cooperation with all subjects who are interested and ready to invest
and help our country. These are primarily potential investors.
 5. CPS diagram
There are two kinds of programs in the CPS:
• Primary programs are those who have the
political will and for which funds are assured
• Secondary programs are those who lack COUNTRY
the G
political will and/or for which there are insufficient
funds - Econo
- Povert
The WB team, with the help of BiH government,
- EU acc
NGOs and BiH citizens will create and implement
the CPS.
 6. Problems and
challenges
1. While achieving the previously mentioned goals, the CPS will deal with
following problems and challenges:
– Improving the environment for development of Small and Medium
Enterprises
– Expand the private company share in the total production of goods and
services
– Create business environment which will attract foreign investments
• To realize the mentioned goals it is essential to:
– Shorten the period time needed to register a company
– Create equal tax policy in BiH
– Strengthen the institutions which will protect free competition
1. Advance the existing infrastructure, especially transport and power facility
infrastructure
– Priority is building a good network of roads, with special attention to
corridor Vc
– Restructuring of the current power facility system which will make the
usage of its capacities more effective.
1.  Regional approach to public goods
– This approach means a sustainable usage of forests and water resources
1. Privatization of public-owned companies
– The process of privatization is not finished. Key strategic, mainly public-
owned, companies are still awaiting privatization
 7. Problems and
challenges- 2nd part
Poverty reduction

5.1. Municipalities
One of the key roles in poverty reduction belongs to the
municipalities. Therefore there is a need for greater funding so
they can reach their goals. This is a more decentralized approach
 
5.2. Social protection
The quality of social protection is significantly lower compared to the
same programs of the Central and Eastern Europe. The social
welfare system in BiH contains multiple programs that compete
for scarce resources. (Maybe put a bubble here in which public
spending would be explained e.g.)
 
5.3. Education
The education system is partially reformed but still there are many
Bolognia update
problems. Challenges that thegraphic
CPS will try to resolve are:
Assure implementation of recently passed law on education
Support of the Bologna process with European commission
cooperation
 7. Problems and challenges-
2nd part (2)
5.4. Health
Low quality of healthcare is result of fragmented services and institutions. Reform
of this sector is needed.
 
5.5. Reducing the disparity between urban/rural areas
The recent war has resulted in migration from villages to cities. Although the
development of BiH economy is based on agriculture, the rural areas are not
contributing enough because of the poor infrastructure and migration of work
force.
This means...
If the previously mentioned priorities are to be successfully solved with the CPS
efficient governing is needed which means:
• efficient government
• quality legislature
• political stability
• active involvement of all citizens in the process of development
 The above mentioned, unfortunately, is not the reality in BiH. There is a need for a
greater involvement of citizens, youth and the non-governmental sector in the
creation and implementation of the CPS.
 8. Indicators and
analytics
Indicators of BiH economy
 
GDP- The total market value of all the goods and
services produced within the borders of a nation
during a specified period.
GDP is the most important indicator for economic
development. BiH has the lowest GDP in the region
Inflation- The rate at which the general level of prices
for goods and services is rising, and, subsequently,
purchasing power is falling (For example, if the
inflation rate is 2%, then a KM 1 chocolate will cost KM
1.02 in a year)
Import/Export- BiH has … % bigger import than export.
Graphic and indictors what is being imported and
exported the most (pie diagram)
 9. Indicators and
analytics- 2nd part

• Public debt- Borrowings by governments to finance

expenditures not covered by current tax revenues. BiH
has the lowest public debt per capita in the region
(what is the debt per capita and compare it to
neighbor countries???)
• Why don’t we have such a large per capita
debt ???
• Public expenditure- Government spending or public
expenditure consists of government purchases, which
can be financed by segniorage (the creation of money
for government funding, at a heavy price of high
inflation and other possibly devastating
consequences), taxes, or government borrowing. It is
considered to be one of the major components of
gross domestic product (GDP)… Show how much
money BiH government is spending, how it is spent
and so on…
 10. Platform for action
Platform for action
 
We believe that young people would be interested in knowing that a
document exists, with the name „Our platform for action“, a very
important document supported by BiH leaders. It is about main
strategic aspirations, economic goals, and was signed by:
Dr.Nedžad Branković, Prime Minister of FBiH
Mr.Milorad Dodik, Prime Minister of RS
Mr.Mirsad Đapo, Mayor of Brčko District
Dr.Nikola Špirić, Chairman of the Council of Ministers of BiH
 
Although it is unique because it was signed by the four leaders of
executive government in BiH, it is also unique just because of the
strategic goals which are mentioned in it. Some of them are
lowering the public expenditure (as a percentage of GDP),
harmonization of the business environment in BiH, equalize the
direct taxes and also a greater mobility of the work force. The
platform for action is a part of the CPS for FY08-FY11)
 11. Message to the
youth… (Not finished yet)
• The team of the WB remains open for
all consultations with all participants,
especially the citizens, in all phases
You can find all information on:
of the implementation
www.worldbank.org/ba,of CPS. This
means that citizens
www.yvgbih.com(youth, soldiers,
hose-wife, workers, politicians and
others) should support the
development of their country.