Transitional Support Credit

closed

The Transitional Support Credit (TSC) will support the policy and institutional reform program of the Caretaker Government (CTG), which assumed power in January 2007. The transitional part of the TSC reflects the transitional nature of the political situation. The TSC will support a subset of the CTG's wide-ranging reform agenda, which is heavily focused on tackling critical and long-festering weaknesses in core governance functions. Notably, the reforms have sought to strengthen and enhance the autonomy of important institutions of accountability such as the election commission and the anti-corruption commission. Other measures have included separation of the lower judiciary from the executive, preparation of the right to information legislation, and formation of the regulatory reforms commission to streamline business processes. The CTG is also deepening economic reforms in a number of areas, including trade liberalization, macroeconomic stability, and strengthening public financial management and tax mobilization. The recently concluded joint damage, loss and needs assessment has outlined a long-term strategy that integrates structural and nonstructural interventions in light of the lessons learned from the natural disasters over last two decades. Central to this strategy is a long term disaster risk reduction framework which has five strategic pillars: (a) risk identification and assessment; (b) strengthening and enhancing emergency preparedness; (c) institutional and community capacity building; (d) risk mitigation investments; and (e) introducing catastrophe risk financing in the longer term.