World Bank Group

Bangladesh Country Partnership Framework FY23-27

Consultations with Private Sector
July 26, 2022

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 1. Introduction

Objective of today’s meeting:

Present the proposed Bangladesh CPF framework and seek feedback

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CPF
Country’s
Development Goals

WBG
CPF WBG
Twin Current
Portfolio &
Goals Comparative
Based on SCD Advantage
analysis

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Leveraging key lessons learnt from CLR of previous CPF

✓A long-term strategic approach is critical for the impact and relevance of WBG
interventions.
✓Analytical work and TA have been a critical core competence of WBG engagement over
the long term.
✓Achieving development outcomes requires a continued focus on institution
strengthening, capacity building, and implementation support.
✓WBG’s engagement and program financing benefited positively from strong technical
and co-financing supports by DPs.

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Challenges and Priorities identified by SCD
• Four Frontier Challenge: The country’s future sustainable growth and poverty reduction---and to reach UMIC
level of development---critically hinges on addressing the following challenges:
• Narrow-based private sector is not competitive to drive growth and job creation
• The current pattern of spatial transformation is increasingly inefficient, unsustainable and less inclusive.
• Climate and environmental vulnerabilities are posing risks to sustainable growth and poverty reduction.
• [cross-cutting] Weak institutions and markets are limiting the country’s ability to address those
challenges and facilitate a transformation to UMIC

• Eight SCD Priorities: Foundational Priorities Enabling Priorities

Inclusive and Effective and

Competitive and Closure of
resilient human efficient public
diversified market infrastructure gaps
capital institutions

Productive and
Macroeconomic Skills development Private sector
sustainable
and financial sector and technology finance for
management of
stability adoption development 5
natural capital
2. Proposed Bangladesh CPF

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 Proposed CPF Framework
Gov’t Priorities
High-Level Outcomes (HLOs) CPF Objectives
(8th FYP)
1. Improved business environment for broad-based private sector
GDP growth
Rapid recovery from COVID, preparation for LDC graduation, progress toward SDGs

development
acceleration,
employment HLO A. Increased private sector 2. Stronger financial intermediation to support long-term growth
generation, productivity jobs and resilience
acceleration and rapid
3. Improved effectiveness of public institutions to deliver better

Strengthening institutions & creating markets

poverty reduction
services to citizens and businesses

4. Improved equity in access to quality services for human capital

Broad-based strategy of development
inclusiveness, citizen

CPF Reform Priorities

HLO B. Improved socioeconomic 5. Enhanced productive and economic opportunities for women,
empowerment , helping
the poor and vulnerable inclusion poor, and vulnerable groups
with social protection 6. Strengthened spatial and digital connectivity for competitive,
inclusive, and resilient growth

7. Improved effectiveness of delta management to accelerate

Sustainable development of climate resilience
development pathway
with climate resilience, HLO C. 8. Increased sustainable and productive use of natural capital
sustainable natural Enhanced climate resilience to facilitate green growth and energy transition
resources and
managing urbanization

Development and
improvement of critical
institutions necessary to
lead the economy to
UMIC status
Three High-Level Outcomes (HLOs) and Their Indicators
HLOs need to be consistent with the country’s development goals and will be achieved over a time horizon that
extends beyond a single CFP cycle. They are set at a higher level than CPF objectives and typically result from the
combined effort of multiple partners.

HLO A: Increased private sector jobs

• Indicator: Total private sector jobs (in thousands) (disaggregated by gender)
• Indicator: Private investment as % of GDP (overall, foreign)

HLO B: Improved socioeconomic inclusion

• Indicator: Human Capital Index (gender, income-group disaggregated)
• Indicator: Female labor force participation rate (national, urban, rural)
• Indicator: Consumption growth of bottom 40% vs. all

HLO C: Enhanced climate resilience

• Indicator: Number of people vulnerable to natural disasters
• Indicator: Urban air quality (PM2.5) 8
CPF Objective 1: Improved business environment for broad-based
private sector

Rationale: help the country boost private sector

productivity to maintain post-LDC export
competitiveness

• Promote export diversification and FDI (e.g., tariff

reforms, investment-related legal modernization,
regulatory simplification, private sector zones)
• Foster new enterprise development (e.g.,
regulatory simplifications, incentives for new
enterprises, incl. women-led, start-ups)
• Provide incentives for innovation, technology
adoption (incl. green technology), digital
entrepreneurship development
CPF Objective 2: Stronger financial intermediation for long-term
growth and resilience

Rationale: Strengthen financial sector to boost

private investment to achieve 8th FYP goals

• Financial sector stability (e.g., strengthening

central bank supervision, state-owned bank
governance reforms, asset classification/NPLs)
• Long-term domestic capital market development
(e.g., phasing-out national saving certificates)
• Digital infrastructure for payment systems
• Access to finance among MSMEs, women-led
enterprises, start-ups (e.g., credit guarantee
program)
• Climate financing
 Objective 3: Improved effectiveness of public institutions to deliver
better services to citizens and businesses

Rationale: Make public sector effective and efficient to provide quality services to
businesses and citizens and makes effective investments

• Local government capacity for service delivery through sustainable financing

and PPPs and strengthen citizen engagement in decision-making and service
delivery monitoring
• Strengthen fiscal sustainability (e.g., domestic resource mobilization, debt
management)
• Enhance public sector service delivery performance, incl. SOEs, through PFM
reforms, transparency/accountability framework (inc. access to information)
• Strengthen public investment management with higher efficiency and
strengthen institutions for PPPs
• Inclusive, accessible and efficient administrative processes, leveraging digital
technologies (i.e., e-gov, eGP, enhanced statistical capacity and open data)
CPF Objective 4: Improved equity in access to quality services for
human capital development

Rationale: Accelerate human development to support to

response and recovery from COVID and lay the foundation
for future growth

• Invest in early years (incl. strengthening child benefit

programs, WASH reforms)
• Gender-focused and inclusive health, education and
water service delivery
• Effective social protection programs with better
targeting
• Investments in skills development
• Sustainable financing for resilient human capital
programs (incl. public expenditure reforms, private
sector participation)
CPF Objective 5: Enhanced productive and economic opportunities
for women, poor, and vulnerable groups

Rationale: Closing gaps in economic opportunities among

women, poor/other vulnerable groups to realize pro-poor
inclusive growth

• Support female labor participation (incl. strengthening

child daycare system, skills)
• Support agriculture diversification, participation in food
system, and access to higher value market, particularly for
rural poor households
• Digital connectivity and access to finance for women and
vulnerable groups
• Strengthen institutions to protect welfare of vulnerable
population (e.g., protection against GBV)
• Access to basic urban infrastructure services (e.g., water,
sanitation, waste management, transport) and housing
CPF Objective 6: Strengthened spatial and digital connectivity to
drive competitive, inclusive, and resilient growth

Rationale: Strengthen spatial and digital connectivity to

reduce spatial/gender disparities and to enhance private
sector role in development

• Private sector participation in connectivity infrastructure

(incl. logistics, multimodal transport) with environmental
sustainability, regulatory framework for infrastructure
services
• Supply chain developments for stronger rural-urban
connectivity, e-commerce platform development
• Transport and digital services for human capital
development (incl. last mile services for women, and road
safety)

This Photo by Unknown Author is licensed under CC BY-SA

CPF Objective 7: Strengthened effectiveness of delta management to
accelerate climate resilience building

Rationale: Accelerate reforms and investments for effective

delta management to build climate resilience

• Strengthen implementation of BDP2100 (e.g.,

prioritizing climate resilient investments under an
enhanced public investment management framework)
• Effective water management and pricing and stronger
regulatory system
• Establish a transparent and effective land management
system
• Develop climate resilient infrastructure and improve
disaster risk management
• Support adaptive social protection and resilient human
capital development system.
CPF Objective 8: Improved sustainability and productivity of use of
natural capital for green growth and energy transition

Rationale: Increase the sustainability and productivity in the use of

natural resources to sustain long-term growth and poverty reduction

• Improve productivity and climate adaptation in agriculture and food

system (e.g., promote production diversification, reduce food loss,
enable more value addition, climate smart sustainable agribusiness)
• Scale up renewable energy resource development (incl. regional
power market) and improve energy efficiency (e.g., demand-side
energy efficiency, stronger power transmission and distribution)
• Encourage nature-based solution to climate vulnerability (e.g., forest
management, coastal resilience, tidal basin management)
• Stronger overall environmental resource management (e.g.,
implementation of environment laws and regulations, regulatory
enforcement and monitoring)
• Address urban livability through efficient and resilient planning and
management systems for coordinated land use and stronger
regulatory enforcement across sectors
 3. Requesting Feedback

❑Does the proposed CPF framework resonate with your understanding

on the country’s development priorities in the next 5 years?

❑Which areas do you think the WBG should provide further support for
policy reforms to strengthen institutions and create markets?

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