NI Development Policy Credit

closed

Closed

This program document proposes a single-tranche, stand-alone Development Policy Credit (DPC) for the Republic of Nicaragua. This DPC builds on the recently ended series of Poverty Reduction Support Credits (PRSCs). It is being proposed for strategic reasons to engage the authorities in a continuing policy dialogue and in the interests of maintaining a predictable periodicity in budget support disbursements, while the authorities prepare and consult their up-dated Poverty Reduction Strategy (PRS). As indicated in the last PRSP progress report, the authorities intend to strengthen the PRSP in response to what has been perceived as a very slow poverty reduction response to the strategy implemented so far. In particular, the authorities are seeking to deemphasize the privatization agenda, replace the previous 'cluster development strategies' with small and medium enterprise development models, and promote universal access to basic social services by lowering their costs. More generally, the revised strategy puts more emphasis than before on facilitating participation by small and medium producers in the growth process and on maximizing access to opportunities. The policy actions supported under the DPC focus mainly on public sector strengthening, with an emphasis on public sector management and transparency, and on strengthening the efficiency, monitoring and accountability of basic social services. These actions are drawn mainly from the first two of the four thematic areas covered by the common Performance Assessment Matrix (PAM) for joint financing arrangement, which are (i) macroeconomic stability and improvement of public sector and financial management; (ii) promotion of greater social and human capital development; (iii) inclusive economic development; and (iv) strengthen governance and accountability. These four thematic areas are broadly consistent with the focus of International Development Associations (IDA'S) current Country Partnership Strategy (FY08-FY12), whose lending program is anchored in a series of annual budgetary support operations.

FY17 - Education,FY17 - Health,FY17 - Public Administration,FY17 - Water, Sanitation and Waste Management

World Bank Group

Project

Water Supply and Storage, Waste Processing and Treatment, Government, Education