PRSC-2 SUPPORTS ALBANIA’S ECONOMIC GROWTH AND POVERTY REDUCTION
News Release No.2004/015/ECA
Contacts
:
In Washington:
Miriam Van Dyck (1-202) 458-2931
e-mail
mvandyck@worldbank.org
In Tirana:
Ana Gjokutaj (355 42) 405 87/88/89
e-mail
agjokutaj@worldbank.org
WASHINGTON, July 10, 2003--
The World Bank Board of Directors today approved a
US$18
million
Second Poverty Reduction Support Credit (PRSC-2)
for the Republic of Albania. This is the second in a series of three single-tranche programmatic operations. PRSC will develop and implement policies and structural reforms that are consistent with and supportive of the Government’s three-year National Strategy for Social and Economic Development (NSSED).
The National Strategy of Albania launched in November 2001 focused on the creation of private sector opportunities, human capital development, and public sector reform. The PRSC-1 (US$20 million), approved last June by the World Bank
addressed cross-cutting issues in policy development and public expenditure management, as well as sectoral reform priorities to improve social services delivery. The main achievements under the NSSED and PRSC-1 programs include maintenance of a satisfactory macro-economic framework, satisfactory implementation of a pension reform package, strengthened capacity to monitor and evaluate the policy agenda, strengthening public expenditure management process, and enhancing transparency and financial accountability within the public administration. Recently, the Government of Albania prepared a first Annual Progress Report of the NSSED. The PRSC-2 will continue to support the NSSED by building on the progress made thus far and by further consolidating and strengthening the reform program.
The PRSC program is structured around four components:
Promoting sustainable growth and supporting private sector development, including measures related to private sector and rural development;
Strengthening capacity to monitor and evaluate the Government’s policy agenda, through new surveys to measure trends in living standard in Albania, and the establishment of monitoring plans and targets in each of the key socio-economic sectors (such as health, education, and rural development).
Improving service delivery and social safety net effectiveness, through reforms aimed at improving the quality, access and adequacy of education, health and social protection in Albania; and
Improving core public sector functions and institutional arrangements. The proposed measures aimed at increasing transparency of human resource management practices and accountability of high public officials.
PRSC-2 will also support more effective and efficient policy formulation and implementation, improved access to social services and better targeting of scarce fiscal resources to those most in need, and policies conducive to sustained growth.
The credit will be payable in 20 years, with a 10 year grace period.
Since Albania joined the World Bank in 1991, commitments total approximately US$719 million for 51 projects.
For more information about the World Bank's work in Albania:
http://www.worldbank.org.al