PY Economic Recovery Loan

closed

Closed

The objectives of the Government's program, to be supported by the Economic Recovery Structural Adjustment Loan Project, are to improve public sector management, and fiscal sustainability. These would support a solid economic recovery in the medium-term, that would pave the way for sustained higher growth rates, a return to positive per capita economic growth, and significant poverty reduction. This single-tranche loan supports the presentation to Congress of a budget consistent with attaining a primary surplus for 2004, and financial sector reforms to reduce the fiscal liabilities associated with poor banking resolution practices, and deposit guarantee schemes. The operation also backs the presentation to Congress of major reforms in the tax system, in the public sector pension scheme, and in the customs code, and, supports numerous actions in improving public sector administration, including, but not limited to, the implementation of the newly regulated public procurement law; censuses of public sector employees, and of the contributors and beneficiaries of the public pension scheme; and, the adoption of a financial management action plan to enhance transparency, and strengthen audit, and independent review functions. Nevertheless, a key risk is the absence of a track record in implementing high-quality reforms. The government's reform strategy is an ambitious one, with major reforms to be approved by Congress within a short period of time. Efforts to tackle corruption, and increase efficiency in the public sector figure prominently in this strategy, and could ignite resistance and unrest, possibly resulting in a retreat from, or dilution of, the reform agenda. Mitigating these risks are the new administration's concerted efforts to reach a wide-ranging political consensus for its reform program.

FY17 - Financial Sector,FY17 - Public Administration,FY17 - Social Protection

World Bank Group

Project

Government