Yvg Bih Brochure

YVG BiH brochure

The WB on language of youth

Goal and structure Explain youth, on simple language, activites of the World Bank in BiH Main topics

The World Bank

Bosnia and Herzegovina

CPS strategy

Content 1. Front page 2. Inner page (Back-side of the front page) 3. Family tree, why borrow money and comparison WBIMF 4. CPS or what has to be done... 5. CPS diagram 6. Problems and challenges 7. Problems and challenges2nd part 8. Indicators and analytics 9. Indicators and analytics- 2nd part 10. Platform for action 11. Message to the youth… (Not finished yet)

Important note: We’ll hire graphical designer for design of this brochure

1. Front page • • • • • • • •

Reconstructed plants 1100 km of rehabilitated roads 25000 living units reconstructed Help with the reconstruction of the Old bridge in Mostar 82 schools have been restored 44 medical centers equipped 200.000 small loans given to people Reformed banking sector

2. Inner page (Back-side of the front page)

HELLO (words of greeting and introduction) Introduction to the World Bank (WB) • It was established 1944 in Bretton Woods, USA, together with the International Monetary Fund (IMF) • 184 country members • Its first task was to help Europe recover from World War II • WB mission: „To fight poverty with passion and professionalism for lasting result“.   A common misunderstanding is that the WB is a commercial bank... • The World Bank works in partnership with governments • The World Bank does not lend money to people or companies; it lends money to the state

3. Family tree, why borrow money and comparison WB- IMF Why borrow money from the World Bank? IBRD • The WB lends money on terms that are more favorably than commercial banks • It borrows money to the poorest ICSID countries to which no other institution WB would. • Beside the money, the WB offers its MIGA IDA clients knowledge in social and economical development. It also creates development strategies in partnership with the The World Bank and the International Monetary Fund (IMF) have government. completely different goals:   The WB lends money only to developing and transition countries, while the IMF offers its services to all countries, rich or poor. WB focuses on long-term, while the IMF focuses on short-term economic development goals. WB works on broad development programs. The IMF is focused on exchange stability of currencies.

IFC

4. CPS or what has to be done... Graphic: How the CPS is created (project cycle) • • • • •

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Since opening its office in BiH, the WB has created and implemented several development strategies. They strategies have changed according to situation in the country. The situation has been changing and the corresponding help and cooperation level between WB and BiH followed. The first strategy was Reconstruction Assistance Program (RAP), the second one is the Country Assistant Strategy (CAS), and today it is the Country Partnership Strategy (CPS) During the post-war period BiH successfully fulfilled the expectations from the first strategy. In the period of the second strategy the performance was moderately satisfactory. BiH has not implemented many of the projects for which money was approved, so that money was lost ( for example a credit of 12 million for the education was lost because of the lack of will for the reform of higher education) A major problem is that the projects, for which money was approved, are waiting too long for realization.

4. CPS or what has to be done (2)... Up to this date and the new Country Partnership Strategy (2008- 13) money was approved to BiH with great confidence. Because of the inefficiency of the government this approach is going to change. In the future, approval of funds will depend on political will of BiH politicians and the project implementation closely monitored. The only criteria for fund approval will be results of the country which is also YOUR responsibility. The CPS is very flexible, and if a project is not successful, the money will be redirected to another project. The goal of the CPS is greater cooperation with all subjects who are interested and ready to invest and help our country. These are primarily potential investors.

5. CPS diagram

There are two kinds of programs in the CPS: • Primary programs are those who have the political will and for which funds are assured COUNTRY G • Secondary programs are those who lack the political will and/or for which there are insufficient - Econo funds

- Povert The WB team, with the help of BiH government, NGOs and BiH citizens will create and implement - EU acc the CPS.

6. Problems and challenges 1.

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While achieving the previously mentioned goals, the CPS will deal with following problems and challenges: – Improving the environment for development of Small and Medium Enterprises – Expand the private company share in the total production of goods and services – Create business environment which will attract foreign investments To realize the mentioned goals it is essential to: – Shorten the period time needed to register a company – Create equal tax policy in BiH – Strengthen the institutions which will protect free competition Advance the existing infrastructure, especially transport and power facility infrastructure – Priority is building a good network of roads, with special attention to corridor Vc – Restructuring of the current power facility system which will make the usage of its capacities more effective.  Regional approach to public goods – This approach means a sustainable usage of forests and water resources Privatization of public-owned companies – The process of privatization is not finished. Key strategic, mainly publicowned, companies are still awaiting privatization

7. Problems and challenges- 2nd part Poverty reduction 5.1. Municipalities One of the key roles in poverty reduction belongs to the municipalities. Therefore there is a need for greater funding so they can reach their goals. This is a more decentralized approach   5.2. Social protection The quality of social protection is significantly lower compared to the same programs of the Central and Eastern Europe. The social welfare system in BiH contains multiple programs that compete for scarce resources. (Maybe put a bubble here in which public spending would be explained e.g.)   5.3. Education The education system is partially reformed but still there are many Bolognia update problems. Challenges that thegraphic CPS will try to resolve are: Assure implementation of recently passed law on education Support of the Bologna process with European commission cooperation

7. Problems and challenges2nd part (2)

5.4. Health Low quality of healthcare is result of fragmented services and institutions. Reform of this sector is needed.   5.5. Reducing the disparity between urban/rural areas The recent war has resulted in migration from villages to cities. Although the development of BiH economy is based on agriculture, the rural areas are not contributing enough because of the poor infrastructure and migration of work force. This means... If the previously mentioned priorities are to be successfully solved with the CPS efficient governing is needed which means: • efficient government • quality legislature • political stability • active involvement of all citizens in the process of development  The above mentioned, unfortunately, is not the reality in BiH. There is a need for a greater involvement of citizens, youth and the non-governmental sector in the creation and implementation of the CPS.

8. Indicators and analytics Indicators of BiH economy   GDP- The total market value of all the goods and services produced within the borders of a nation during a specified period. GDP is the most important indicator for economic development. BiH has the lowest GDP in the region Inflation- The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling (For example, if the inflation rate is 2%, then a KM 1 chocolate will cost KM 1.02 in a year) Import/Export- BiH has … % bigger import than export. Graphic and indictors what is being imported and exported the most (pie diagram)

9. Indicators and analytics- 2nd part • Public debt- Borrowings by governments to finance expenditures not covered by current tax revenues. BiH has the lowest public debt per capita in the region (what is the debt per capita and compare it to neighbor countries???) • Why don’t we have such a large per capita debt ??? • Public expenditure- Government spending or public expenditure consists of government purchases, which can be financed by segniorage (the creation of money for government funding, at a heavy price of high inflation and other possibly devastating consequences), taxes, or government borrowing. It is considered to be one of the major components of gross domestic product (GDP)… Show how much money BiH government is spending, how it is spent and so on…

10. Platform for action Platform for action   We believe that young people would be interested in knowing that a document exists, with the name „Our platform for action“, a very important document supported by BiH leaders. It is about main strategic aspirations, economic goals, and was signed by: Dr.Nedžad Branković, Prime Minister of FBiH Mr.Milorad Dodik, Prime Minister of RS Mr.Mirsad Đapo, Mayor of Brčko District Dr.Nikola Špirić, Chairman of the Council of Ministers of BiH   Although it is unique because it was signed by the four leaders of executive government in BiH, it is also unique just because of the strategic goals which are mentioned in it. Some of them are lowering the public expenditure (as a percentage of GDP), harmonization of the business environment in BiH, equalize the direct taxes and also a greater mobility of the work force. The platform for action is a part of the CPS for FY08-FY11)

11. Message to the youth… (Not finished yet) • The team of the WB remains open for all consultations with all participants, especially the citizens, in all phases You can find all information on: of the implementation of CPS. This www.worldbank.org/ba, www.yvgbih.com means that citizens (youth, soldiers, hose-wife, workers, politicians and others) should support the development of their country.