WORLD BANK APPROVES $80 MILLION CREDIT TO SUPPORT SOCIAL SECTOR REFORMS IN SERBIA
Contacts:
In Belgrade:
Vesna Kostic (11) 302-3723
vkostic@worldbank.org
In Washington:
Miriam Van Dyck (1-202) 458-2931
mvandyck@worldbank.org
WASHINGTON, April 22, 2003—
The World Bank Board of Directors today approved a US$80 million credit to support social sector reforms in Serbia, Serbia and Montenegro. The
Social Sector Adjustment Credit
(SOSAC) will
help the Serbian Government implement changes in social protection, labor and health, which are expected to lead
to more fiscally sustainable programs, while continuing to provide core benefits and services to the population, in particular those most vulnerable.
The two overarching objectives of the reforms are: a) to reduce short and medium term fiscal pressure through a combination of entitlement reform and efficiency improvements in the social sectors; and b) maximize the poverty alleviation impact of public spending through improved targeting and sustained access for the poor to cash benefits and services, including health and social welfare.
"These reforms should promote the social sustainability of the Government's entire reform program, and reflect the lessons of more than a decade of experience in reform of social policy in transition economies. They recognize that gainful employment will remain the primary mode of poverty alleviation, but that there is also a critical role for the public sector in protecting the most vulnerable, as well as those who need temporary support as they move from their previous unsustainable employment to seek new work opportunities,” says
Philip O'Keefe,
World Bank Team Leader for the project.
This two-tranche operation will also seek to improve transparency and accountability in the management of public funds in social programs and monitoring of the impact.
For more information visit
http://www.worldbank.org.yu