Department of Business Administration

East West University

World Bank
Submitted to :
Name: Saadia Shabnam Department of Business Administration, East West University.

Submitted By :
ID NO. 2011-1-10198 2011-1-10281 2011-1-10282 Name re Snehashis Bhattacharjee Asik Saha Nipon Saha Signatu

2011-1-10284 2011-1-10287

Md. Saiful Islam Sumon Md.Nur Ullah

Date: 14.03.2011

Organization
The World Bank recognizes that transparency and accountability are fundamentally important to the development process and central to achieving the Banks mission to alleviate poverty. The Banks commitment to openness is also driven by a desire to foster public ownership, partnership, and participation in World Bank operations from a wide range of stakeholders. Transparency is essential to building and maintaining public dialogue and increasing public awareness about the Banks development role and mission. Openness promotes engagement with stakeholders, which, in turn, improves the design and implementation of projects and policies, strengthening development outcomes. It facilitates public oversight of Bank-supported operations, which not only assists in exposing potential wrongdoing and corruption, but also enhances the possibility that problems will be identified and addressed early on.

Origin
Rules of Origin in Free Trade Agreements:

Ascertaining the country of origin of imported products is necessary to be able to apply basic trade policy measures such as tariffs, quantitative restrictions, anti-dumping and countervailing duties and safeguard measures as well as for requirements relating to origin marking, public procurement and for statistical purposes. Such objectives are met through application of basic or non-preferential rules of origin. Countries which offer zero or reduced duty access to imports from certain trade partners will often apply another and different set of preferential rules of origin to determine the eligibility of products to receive preferential access. The justification for preferential rules of origin is to prevent trade deflection, or simple transshipment, whereby products from non-participating countries are redirected through a free trade partner to avoid the payment of customs duties. Hence the role of preferential rules of origin is to ensure that only goods originating in participating countries enjoy preferences. However, rules of origin can be manipulated to achieve other objectives, such as protecting domestic producers of intermediate goods. Restrictive rules of origin raise the costs of supplying the markets of preferential partners by requiring changes in production which lead to the use of higher cost inputs and through the expenses which are incurred in proving conformity with the rules. These costs entail that only a proportion of products which are eligible for preferential treatment will actually be granted preferential access and will constrain market access relative to what is promised on paper in the trade agreement. The rules of origin are therefore a key element determining the magnitude of the economic benefits that accrue from preferential trade agreements and who gets them.

This note reviews the key features of preferential rules of origin and their economic impact. The paper briefly discusses the specification of the rules and the costs incurred by firms to satisfy, and prove conformity to, these rules. These costs act to reduce the value of the tariff preferences that are made available through free trade and preferential trade arrangements. When a product is produced in a single stage or is wholly obtained in the partner then the origin of the product is relatively easy to establish. Proof that the product was produced in the preferential trade partner is normally sufficient. For all other cases the rules of origin define the methods by which it can be ascertained that the particular product has undergone sufficient working or processing or has been subject to a substantial transformation in the partner and that it has not simply been transshipped from a non-qualifying country or been subject to only minimal processing. In practice the higher the level of working that is required by the rules of origin the more difficult it is to satisfy those rules and the more restrictive those rules are in the Absorption Principle provides that parts or materials which have acquired originating status by satisfying the relevant rules of origin for that product can be treated as being of domestic origin in any further processing and transformation. In other words any non-originating materials are no longer taken into account when assessing the nature of further operations. There are important differences across agreements in the use and nature of these provisions relating to rules of origin, which in turn will affect the impact of the agreement. For example, the EU allows for full cumulating with the ACP countries under the Continuo Agreement but only provides for bilateral cumulating under the GSP. Under the NAFTA there is a general 7 per cent tolerance level (with exceptions for certain sectors such as textiles and clothing), whilst under the Canada-Chile free

trade agreement there is a 9 per cent tolerance level. Thus, there is little commonality across agreements in the precise nature of the rules that are adopted. In general recent agreements involving the EU and the US are based upon detailed, often complex, product-specific rules of origin. The restrictiveness of these rules would appear to vary across sectors. For example, the rules for clothing products can be especially complex (see Box) and particularly difficult to satisfy for small less-developed economies. As such the impact of these agreements will not be uniform across sectors.

The Economic Implications of Rules of Origin

Compliance with rules of origin can affect the sourcing and investment decisions of companies. If the optimal input mix for a firm involves the use of imported inputs which are proscribed by the rules of origin of a free trade agreement in which the country participates then the rules of origin will reduce the value of the available preferences. The firm will have to shift to a higher cost source of inputs in the domestic economy which will reduce the benefits of exporting under a lower tariff. In the extreme, if the cost difference exceeds the size of the tariff preference then the firm will prefer to source internationally and to pay the MFN tariff. The ability to cumulate inputs from a partner under bilateral, diagonal or full cumulating will tend, in increasing order, to open the possibilities for identifying low cost sources of inputs which do not compromise the qualifying nature of the final product. Nevertheless, if the lowest cost supplier is not a member of the area of cumulating then the benefits of the preferential scheme will always be less than indicated by the size of the preferential tariff. These problems will be exacerbated in sectors where economies of scale are important. A producer which supplies both preferential and nonpreferential trade partners, or faces different rules of origin in different

preferential partners, will have to produce with a different input mix for different markets if they are to receive preferential access. This may undermine the benefits from lower average costs that would arise if total production were to be based on a single set of material inputs and a single production process. Rules of origin may be an important factor determining the investment decisions of multinational firms. Such firms often rely on imported inputs from broad international networks which are vital to support the firm specific advantages that they possess, such as a technological advantage in the production of certain inputs. More generally, if the nature and application of a given set of rules of origin introduces a degree of uncertainty concerning the extent to which preferential access will actually be provided this may constrain investment. Restrictive rules of origin discriminate against small countries and LDCs where the possibilities for local sourcing are limited or non-existent. For companies there is not only the issue of complying with the rules on sufficient processing but also the costs of proving compliance with those rules of origin. The costs of proving origin involve satisfying a number of administrative procedures so as to provide the documentation that is required and the costs of maintaining systems that accurately account for imported inputs from different sources to prove consistency with the rules. The ability to prove origin may well require the use of, what are for small companies in developing and transition economies, sophisticated and expensive accounting procedures. There is limited information on these costs but the available studies suggest that the costs of providing the appropriate documentation to prove origin can be around 3 per cent of the value of the export shipment for companies in developed countries. The costs of proving origin may be even higher, and possibly prohibitive, in countries where customs mechanisms are poorly developed. Thus, even if producers can satisfy

the rules of origin, in terms of meeting the technical requirements, they may not request preferential access because the costs of proving origin are high relative to the duty reduction that is available.

Rules of Origin and the Utilization of Trade Preferences

Difficulties that may arise in satisfying the rules of origin and the costs of proving conformity with those rules are suggested by the relatively low utilization rates that are observed in preferential trade schemes. For example, during 1999 under the EUs GSP scheme, only one-third of EU imports from developing countries which were eligible for preferences actually entered the EU market with reduced duties. Under the EUs Everything but Arms Agreement almost all of Cambodias exports to the EU are eligible for zero duty preferences, yet in 2001 only 36 per cent of those exports obtained duty free access. Brinton (2003) shows that this lack of take-up of preferences entailed that on average Cambodias exports to the EU paid a tariff equivalent to 7.7 per cent of the value of total exports. The main suspect for this under-utilization of trade preferences is the rules of origin. Brinton and Minchin (2002) show that a large amount of EU imports of clothing products from Eastern European countries made from EU produced fabrics still enter the EU market under an alternative customs regime, outward processing, even though there is no fiscal incentive to do so since EU tariffs had been removed under free trade agreements. This probably reflects the costs and uncertainties in proving origin that would be necessary under the normal preferential customs procedures.

Preferential Rules of Origin Increase the Complexity of the World Trading System
Difficulties arise when the same product may have different countries of origin for customs purposes depending upon the market, and the rules of origin, for which it is destined. For example, at present clothing companies in certain African countries can obtain duty free access to the US market under African Growth and Opportunity Act (AGOA) with liberal rules of origin but exactly the same product will be denied duty free access to the EU under the Everything But Arms Agreement (because of the requirement that the product be manufactured from yarn under the EU rules of origin). A company in Singapore could find that its product can enter ASEAN markets duty free, by satisfying the maximum import content requirement of 60 per cent, but does not satisfy the origin rules of the Singapore-Japan agreement. This considerably complicates production and investment decisions. Complicated systems of rules of origin increase the complexity of customs procedures and the burden upon origin-certifying institutions. This can absorb scarce administrative resources. In a period where increasing emphasis has been placed upon trade facilitation and the improvement of efficiency in customs and other trade-related institutions, the difficulties that preferential rules of origin create for firms and the relevant authorities in developing countries is an important consideration. Hence, less complicated rules of origin stimulate trade between regional partners by reducing the transactions costs of undertaking such trade.

Objectives / Vision

A democratic country with a vibrant traditional culture and a sustainable economy. A prosperous society with sufficient food, shelter, clothing and security for all its people. All towns and villages with access to adequate and appropriate roads, transport, electricity and communications . All East Timorese to be literate, skilled and participating in the economic, social and political life of the Nation. Increased productivity in all sectors , creating job opportunities for all. Living standards and services improved and income fairly distributed. Stable prices for goods and services with sound and sustainable management of natural resources. A Nation justly applying the Rule of Law, and managing the economy and finances efficiently and transparently. The government, private sector, civil society and community leaders fully responsible and accountable to the people. After years of suffering, a difficult struggle and the loss of many lives, we have finally achieved our independence. As we become the first independent nation of the new Millennium, we must now begin to address the economic and social deprivations resulting from years of colonial neglect and foreign domination. Inspired by the values of our Resistance, charismatic leaders and with support from our people we formulated our National Vision for the year 2020 and drafted a National Development Plan for the next five years. East Timor 2020 Our Nation, Our Future represents a popular expression of this vision for our nation. The aspirations of our people were gathered through a highly innovative and participatory countrywide consultation process, involving 980 community consultations within the 498 sucks reaching 38,293 East Timorese men, women and children. Active participation also came from community leaders like the Chefs de Saco and Chefs de Alexia, teachers and health personnel, civil society groups, including NGOs and

religious organizations, government officials, academics and members of political parties. Donor and INGO representatives, international experts and UNTAET staff provided advice, encouragement and support. This has been an extraordinary exercise. We are the only nation that on the eve of its independence has been eve of its independence has consulted its people so widely and so systematically on their aspirations about their future. This process reached so many sucks and interest groups in such a short time. It represents a significant world achievement. This is something unique of which we, the people of East Timor, should be proud. Our peoples responses have laid the foundation for the first National Development Plan for an independent East Timor. For the first time in our history, we have been given the opportunity to voice our vision and our priorities, contributing to policy making on the future development of our country. The outcome is both moving and powerful.

The Path World Bank Took

The process of encapsulating the national vision and formulating the National Development Plan began in 2001 with a Poverty Assessment. It was undertaken by the National Planning and Development Agency (NPDA) in partnership with four donors. The Assessment involved consultations with Chefs de Saco (village chiefs) and local leaders, on the human and physical assets in the country The members of 1,800 East Timorese households across the country, on their living standards, and Communities in 48 ladies (hamlets) giving their ideas on development and poverty reduction.

The Planning Commission superseded the NPDA following the establishment of the Second Transitional Government. Under the chairmanship of Dr. Mari Alkatiri it oversaw the formulation of the National Development Plan. The Commission consists of five Ministers from the Transitional Government and five members of Civil Society initially led by Mr. Banana Gismo . It is supported by a Technical Secretariat headed by Ms Emilia Piers and the Advisor on Development Mr. Antonio ad Concepcion. The first act of the Commission was to assess the status of the nation by each Ministry undertaking a stock take of the current situation on their respective sectors. This involved a number of East Timorese government officials and with assistance from international experts; they prepared The State of the Nation Report, which describes the main features of East Timorese society, its economy and political system.

World Banks Vision for Education:

They want to be well educated and highly productive. They want education for all, particularly the poor, the disabled, the elderly and women so they can become literate and skilled, to help build our country.

Goals:
Lower adult illiteracy, especially among women Easier access to education for all, and establish at least One primary school (SD) in each suco Better quality of teaching and learning Higher school completion and retention rates.

 Develop school curricula, particularly for technical training, relevant to the conditions and needs of East Timor. Reintroduce Portuguese and Teton in schools.

World Banks Vision for Health:

They want to be healthy, living long and productive lives. They want adequate health services in every suco and aldeia providing quality care for all.

Goals:

Access to quality health services for all. Reduced maternal and infant mortality. Reduced incidence of illness and death from preventable and communicable diseases, including HIV/AIDS. Improved reproductive health. Increased access to health education and improved skills of health care personnel. Well-equipped clinics or sanitary posts in each suco, with adequate doctors, nurses and midwives. Ambulance services between sucos, district town clinics and hospitals.

World Banks Vision for Agriculture :

We want to produce enough food for the country, export rice, coffee and other products while managing our natural resources in a sustainable

way. We want to eliminate hunger, reduce poverty, and improve living standards of our people through developing agriculture.

Goals:
Food security and improved food self-sufficiency. Diversification and production of quality food, commercial crops and horticultural products based on integrated farming systems and practices. Livestock production and eradication of diseases. Aquaculture farming and sustainable marine fishing. Protection, development and sustainable use of forests. Reduce Photo by: F. Lisnawati soil erosion. Production of traditional medicinal plants. Well-developed agricultural industries. Sustainable management of agriculture,fisheries and forestry resources. Increased rural incomes and reduced rural poverty.

World Banks Vision for Economy:

They want a strong and stable economy with increased productivity in all sectors, creating job opportunities for all. They want living standards and services improved and income fairly distributed, with stable prices for goods and services and sound and sun stainable management of natural resources. They want transparent and efficient management of the economy and finances free from corruption and fraud.

Goals:

 High and sustainable economic growth, especially in sectors other than oil and gas. Employment growth to absorb growing labor force. Stable prices and low inflation. Increased national government revenues. Efficient management of oil and gas revenues to benefit present and future generations. Sound banking and finance sectors which provide credit to rural areas. International competitiveness through appropriate wages and exchange rates. Private sector (including agriculture) to play a strong role in the economy. Open trading system.

World Banks Vision for Infrastructure:

They want adequate physical infrastructure and services in the regions of East Timor, to reduce isolation and support economic and social development. They want infrastructure that is efficient and cost effective and is financially, environmentally and socially sustainable.

Goals:

Reliable and adequate quantity of potable water to urban residents. Adequate collection and safe disposal of sewage and waste water in urban areas. Safe disposal of hazardous waste. Water and sanitation to rural areas through community owned schemes.

Appropriate management of water resources.

World Banks Vision for helping the poor:

They want to live in a healthy, prosperous society free from ignorance, with adequate food, shelter, clothing and security, balanced with fair income distribution.

Goals:
Help vulnerable groups in rural areas. Enough food for everyone all the time. Everyone has a good life. Integrated rural development. Poverty reduction and eradication. Caring of families of war victims, including widows, disabled and the poor who gave everything for East Timors independence. Empowerment of the poor.

World Banks Vision for Peace &Reconciliation:

They want to live without hate and fear, embracing peaceful and democratic principles everywhere in East Timor.

Goals:
Long term peace, security and stability.

 Living in inner peace and tranquility. Peace and reconciliation in the household and no more domestic violence. Reconciliation among all in our sucos and aldeia. No more acts of revenge/retribution and violence. No beatings, killings and fear from threats by others. Acceptance of all East Timorese to work for our country.

World Banks Vision for Democracy & Good Governance:

They want East Timor to be a democratic country in every respect where individual freedoms and responsibilities are upheld, and where economic, cultural, social and political rights are protected. They want a nation justly applying the Rule of the Law, and managing the economy and finances efficiently and transparently, where the government, private sector, civil society and community leaders are fully responsible and accountable to the people.

Goals:
Enjoyment of human, economic, cultural, social and political rights by everyone Respect and enforcement of property rights and land ownership. No corruption (KKN) and nepotism. No discrimination, in any form and manner. Stable and democratic nation.

Area of Operation

The World Bank a world recognized bank is operating all over the world in some specific sectors; like- education , rural development ,health, transportation etc . Here some examples of some operating countries and its operations and results are given below:

Operation in Africa Cte dIvoire

After 10 years of political crisis, Cte dIvoire is looking towards renewal. The World Bank presented its strategy document that outline steps to stable growth. 1967: The first World Bank operation in Cte dIvoire finances a highway. 2004: Suspension of World Bank operations due to non-payment of arrears. Low-Income Countries Under Stress (LICUS) and The PostConflict Fund (PCF) grants. 2007: Signing of the Ouagadougou Political Accord and special approval of the Post-Conflict Assistance Project (US$120 million from the International Development Association) to support crisis recovery. 2008: Clearance of arrears and World Bank re-engagement. Preparation of the Interim Strategy Note, the first step toward reengagement.

 2010: Visit by World Bank President Robert Zoellick and Vice President Obiageli Ezekwesili to Cte dIvoire. New Country Partnership Strategy drafted for 2010 to 2013.

Ghana
The World Bank board approved a US$215 million Poverty Reduction Support Credit (PRSC) to the Government of Ghana. The Government, through the Ministry of Finance & Economic Planning, develops and submits to Cabinet for decision the second Financial Sector Strategic Plan, FINSEP II. The Public Utilities Regulatory Authority establishes and implements an electricity automatic tariff adjustment mechanism. The Government, through the Ministry of Energy, submits to Cabinet for decision a policy proposal establishing a petroleum regulatory authority.

Kenya
The World Banks work in Kenya supports the governments Vision 2030 development strategy, which aims to accelerate sustainable growth, reduce inequality, and manage resource scarcity. Kenya Green Electricity Project Aims to Connect One and a Half Million More People and Businesses. World Bank begins Fellows Program to bring specialized expertise to countries . World Bank begins Fellows Program to bring specialized expertise to countries .

For 2011, World Bank project GDP growth at 5.3 percent, and even 6.0 percent if no shocks occur.

Operation in Europe & Central Asia

Poland
This Country Partnership Strategy (CPS) sets out the country context, country development program, and envisaged World Bank program for Poland for the period 2009-13. The EU and its institutions are now Polands main external partners, to which the World Bank is committed to play a supporting role. Promote fiscal adjustment and reverse negative debt dynamics through restructuring of expenditure.

Serbia

Maintaining macroeconomic stability, increased employment and living standards. Promoting dynamic economic growth, through accelerated implementation of economic reforms. More balanced regional development.

Tajikistan

 Structural reforms have been undertaken in areas such as agriculture, energy, transport, and private and financial sector development. Partial improvements in safe water availability in Dushanbe have taken place. The quasi-fiscal deficit of the energy sector has been reduced. The Community Agriculture and Watershed Management Project in Tajikistan and the Food Crisis Response projects were awarded in the World Bank's third annual "Improving the Lives of People in Europe and Central Asia 2010" competition.

Operation in East Asia & Pacific Vietnam

The project adopted a comprehensive, long-term approach to the protection of coastal wetlands in four Mekong provinces: Ca Mau, Bac Lieu, Soc Trang and Tra Vinh. In addition to planting trees to fight erosion, the project sought to tackle some of the causes of environmental degradation. In Ca Mau province, area of erosion decreased by 40% between 2000 and 2007; accretion area increased by 20%. 2.3 million scattered trees also planted.

 Some investments (school rooms, musical instruments, etc) targeted poor Khmer minorities, enhancing their social and cultural lives.

Philippines

The World Bank is supporting the expansion of sanitation services in a quarter of the countrys small towns, and implementation of the Laguna de Bay Environment Project has just started. A planned World Bank Sector-Wide Environment Project will try to systematically overcome some of the long standing weaknesses in DENRs institutional performance. The World Bank is providing extensive agricultural assistance to help take pressure off natural resources.

Indonesia
Acehs poverty level has fallen since the reconstruction program started, whilst at the same time there has been strong economic growth and declining inflation. The World Banks development program in Aceh and Nias precedes the tsunami and began in 1998. Now, it also coordinates nearly US$700 million of the Multi-Donor Fund. The tsunami caused US$4.5 billion worth of damages to the Aceh province, but in the immediate aftermath 30 years of conflict also came to an end.

Latin America & Caribbean

Bolivia
The World Bank in Bolivia has made a point of working with government, communities, and other partners to ensure that support benefits Bolivia's overall development. Drinking water supply systems were constructed in 762 rural communities, as well as 27 sewage systems and more than 12,000 latrines.

The World Bank has financed several public sector reform projects, like: telecommunications, electricity, transport, oil and gas sectors and for the mining sector.

An effort to provide universal schooling for all Haitian children has exceeded goals set for its first year and is on track for even further growth in the coming school year

Chile
US$30 Million World Bank Loan to Improve Competitiveness through Innovation.

Stimulate technology transfer and the creation of new technology based enterprises through the Corporation for the Promotion of Production (CORFO).

 Strengthen Chiles Science Base by supporting the National Commission for Scientific and Technological Research (CONICYT) and improving the coherence, quality and relevance of research funding policy in Chile.

Strengthen the Ministry of Economys capacity on innovation in accordance with the guidelines of the National Innovation Strategy.

Haiti

Infrastructure projects (development of roads, collection source and drinking water, construction of irrigation canals), Productive projects (community stores, shops for agricultural inputs, grain mills accompanied by generating electricity), Projects of a social nature (cultural center, cyber center, school construction). PRODEP is a US$38.6 million five-year project supported by the World Bank to strengthen community-based organizations by enabling beneficiaries to plan projects and allocate and manage public resources. The World Bank today announced that the remaining US$36 million of debt owed by Haiti to the International Development Association (IDA), the Banks fund for the poorest countries, has been cancelled.

Middle East & North Africa

Libya

The World Bank and the National Planning Council (NPC) of the Socialist Peoples Libyan Arab Jamahiriya signed a Technical Cooperation Agreement for a Joint Economic Advisory Program to support and further Libyas reform process. World Bank Signs a US$1,000,000 Technical Cooperation Agreement With The Socialist Peoples Libyan Arab Jamahiriya to Support The Reform Process in The Field of Economic and Social Development Through this agreement, the World Bank will provide the Socialist Peoples Libyan Arab Jamahiriya with technical assistance in the economic and social fields.

Algeria

In the area of political stability and absence of violence, there was substantial and statistically significant progress over the 2002-2006 period.

GDP in the Middle East and North Africa eased slightly in 2007 to 4.9 % and will likely rise with the help of high oil prices to 5.4 % in 2008.

 A high level workshop took place in Algiers on July 11 and 12, 2006 to present the principle recommendations of the RDP.

The World Bank conducted a Public Expenditures Review (PER) for the period of October 2005-2006.

Israel

At the request of the Palestinian Authority (PA), the Government of Israel (GOI) and the international community, the World Bank has released a paperDisengagement, the Palestinian Economy and the Settlementswhich looks at the potential impact of Israels Disengagement Plan on the Palestinian economy.

Much greater focus on aspects of trade facilitation such as customs, ports and standards administration. Joint liberalization of trade in goods and services, involving much freer flows of labor and capital than has hitherto been the case,a renewed emphasis on improving the investment climate through domestic policy reforms.

Operation in South Asia

Bangladesh

The World Banks new Country Assistance Strategy (CAS) for Bangladesh for FY2011 to 2014 envisions doubling support to help Bangladesh to reduce poverty to 15% of the population and achieve Middle Income Status by 2021.

The Padma Bridge is expected to unlock the potential of the region and transform the lives of over 30 million Bangladeshis living in the South West and will fulfill the long-standing dream of the people in the region to have a permanent crossing over the Padma River. The ongoing and prospective changes in tax policy and administration could be critical for Bangladeshs growth prospects. Bangladeshs exports achieved a growth rate of 4.1% for the year after declining for much of FY10 (year-to-year). The World Banks new Country Assistance Strategy for Bangladesh (FY11-14) was publicly launched on September 15th in Dhaka. The launch event continues a process of regular multi-stakeholder consultations that keep the new strategy aligned to the countrys highest development priorities.

Afganistan

Afghanistans growth outlook for 2010/11 is cautiously optimistic with GDP growth of 8.5-9%, and inflation around the governments target of 5% assuming banking sector losses are contained.

 World Bank assistance comprises a portfolio of International Development Association (IDA) grants and credits as well as the projects it supervises on behalf of the Afganistan Reconstruction Trust Fund (ARTF). A wide range of social and economic measures on Afghanistan, including links to the World Bank's most important online development databases. Launching pad to all information on World Bank activities in Afghanistan. Compilation of all the World Bank's publications on Afghanistan.

Nepal

The World Bank Group has been a development partner in Nepal for the past four decades, providing financing, technical assistance and advice. Providing health service in Nepal. Providing essential health services to Nepals poorests and most excluded.

 Hence improving these non-operable roads to an all-weather standard and implementing a maintenance system is essential for Nepals economic growth and social welfare.

Bhutan

This Country Partnership Strategy aims to address these challenges by working in partnership with the Royal Government, relying on the strong relationship the World Bank Group has built over many years.

The new World Bank Country Partnership Strategy for Bhutan is aligned with the Governments priorities and is underpinned by 'Gross National Happiness' (GNH). It is the philosophy which forms the cornerstone of Bhutans development and which Bhutan is succeeding in implementing. The rate of economic growth in Bhutan exceeded 6% in 2008-09, however, this is below the 11-14% for the two previous years.

Some Branch Offices of World Bank.

Headquarters2
The World Bank

1818 H Street N.W. Washington, D.C. 20433, U.S.A. Tel: (202) 473-1000 Fax: (202) 477-6391 E-mail: Feedback@worldbank.org Web: http://www.worldbank.org

New York Office

Mr. Ferid Belhaj The World Bank, Office of the Special Representative to the UN 1 Dag Hammarskjold Plaza 885 2nd Avenue, 26th Floor New York, NY 10017, U.S.A. Tel: (212) 355-5112 Fax: (212) 355-4523 E-mail: Fbelhaj@worldbank.org

Europe
Mr. Cyril Muller Special Representative to Europe Banque Mondiale 66 avenue dIna 75116 Paris, France Tel: (33-1) 40 69 30 00 Fax: (33-1) 40 69 30 64 E-mail: cmuller@worldbank.org Web: http://www.worldbank.org/europe

Berlin
Ms. Claudia von Monbart The World Bank Reichpietschufer 20 10785 Berlin, Germany Tel: (49-30) 7261 42501 Fax: (49-30) 7261 4255 E-mail: cvonmonbart@worldbank.org Web: http://www.worldbank.org/eu

Brussels
Ms. Haleh Bridi Special Representative to the European Union Institutions The World Bank Avenue Marnix 17, 2nd floor 1000 Brussels, Belgium Tel: (32-2) 552 00 52 Fax: (32-2) 552 00 25 E-mail: Hbridi@worldbank.org Web: http://www.worldbank.org/eu

Geneva
Mr. Richard Newfarmer Special Representative to WTO and UN The World Bank 3, chemin Louis-Dunant Case Postale 66

1211 Geneva 20, Switzerland Tel: (41-22) 748 1000

London
The World Bank 12th Floor, Millbank Tower 21-24, Millbank London SW1P 4QP, England Tel: (44-20) 7592 8400 Fax: (44-20) 7592 8420 Web: http://www.worldbank.org/europe

Rome
Mr. Massimiliano Paolucci The World Bank Via Labicana 110 00184 Rome, Italy Tel: (39-06) 77 71 01 Fax: (39-06) 70 96 046 E-mail: mpaolucci@worldbank.org Web: http://www.worldbank.org/europe

Tokyo2
Mr. Kazushige Taniguchi The World Bank, Office of the Special Representative, Japan 10th Floor, Fukoku Seimei Building 2-2-2 Uchisaiwai-cho, Chiyoda-ku Tokyo 100-0011 Japan Tel: (81-3) 3597-6650

Fax: (81-3) 3597-9195 E-mail:ktaniguchi@worldbank.org Web: http://www.worldbank.org/japan/jp

Bangladesh
Mr. Xian Zhu The World Bank Plot E-32, Agargaon Sher-e-Bangla Nagar Dhaka 1207, Bangladesh (postal address: G.P.O. Box 97) Tel: (880-2) 815-9001-28 Fax: (880-2) 815-9029-30 E-mail: Xzhu1@worldbank.org Web: http://www.worldbank.org.bd

Belgium
Ms. Sandra Bloemenkamp Special Joint European Commission/World Bank Office for Coordination of Economic Assistance Special Office for South East Europe 4, rue du Trone 1000, Brussels, Belgium Tel: (32-2) 504 0990 Fax: (32-2) 504 0999 E-mail: Sbloemenkamp@worldbank.org Web: http://www.seerecon.org

Brazil
Mr. John Briscoe

Banco Mundial Setor Comercial Norte Quadra 02 Lote A Edificio Corporate Financial Center Conjuntos 701/702/703/ 704 Brasilia, DF 70712-900, Brazil Tel: (55-61) 3329-1000 Fax: (55-61) 3329-1010

Central African Republic

Ms. Jelena Pantelic Banque Mondiale rue des Missions Bangui, Rpublique Centrafricaine (postal address: B.P. 819) Tel: (236) 21 61 61 38 Fax: (236) 21 61 60 87 E-mail: Jpantelic@worldbank.org

China
Mr. David R. Dollar The World Bank 16th Floor, China World Tower 2 No. 1 Jian Guo Men Wai Avenue Beijing, 100004 People's Republic of China Tel: (86-10) 5861-7600 Fax: (86-10) 5861-7800 E-mail: DDollar@worldbank.org

Web: http://www.worldbank.org/cn

India
The World Bank 70 Lodi Estate New Delhi 110 003, India (postal address: P.O. Box 416, New Delhi 110 001) Tel: (91-11) 2461 7241 Fax: (91-11) 2461 9393 Web: http://www.worldbank.org.in/

Indonesia
Mr. Joachim von Amsberg The World Bank Indonesia Stock Exchange Building Tower 2, 12th Floor Sudirman Central Business District (SCBD) Jl. Jendral Sudirman Kav. 52-53 Jakarta 12190, Indonesia (Postal address: P.O. Box 1324/JKT) Tel: (62-21) 5299-3000 Fax: (62-21) 5299-3111 E-mail: Jvonamsberg@worldbank.org Web: http://www.worldbank.org/id

Iraq
Mr. Jean-Michel Happi The World Bank

5th Floor, Tower C Ministry of Planning - Freedom Building Haifa Street, Baghdad, Iraq (Postal Address: Mailstop BGWWB 1818 H Street N.W. Washington DC, USA) Tel: + 1 703 5446967 E-mail: Jhappi@worldbank.org Web: http://www.worldbank.org/iq

Kuwait
Mr. Radwan Ali Shaban Tel: (20-2) 2574-1670 E-mail: rshaban@worldbank.org Web: http://www.worldbank.org/mna

Nigeria
Mr. Ousmane Diagana Banque Mondiale 187, rue des Dallols B.P. 12402 Niamey, Niger Tel: (227) 20 72 21 88 Fax: (227) 20 73 55 06 E-mail: Odiagana@worldbank.org Web: http://www.worldbank.org/net

Pakistan
Mr. Yusupha B. Crookes The World Bank

20 A Shahrah-e-Jamhuriyat, Ramna 5 G-5/1, Islamabad, Pakistan (postal address: P.O. Box 1025) Tel: (92-51) 2279641 Fax: (92-51) 2279648 E-mail: Ycrookes@worldbank.org Web: http://www.worldbank.org.pk

Singapore
Mr. Peter L. Stephens The World Bank Group Office 10 Shenton Way MAS Building #15-08 Singapore, 079117 Tel: (65) 6501-5500 Direct: (65) 6501-5515 Fax: (65) 6324-4615 E-mail: Pstephens@worldbank.org Web: www.worldbank.org/sg

South Africa
Ms. Ruth Kagia The World Bank First Floor, Pro Equity Court 1250 Pretorius Street, Hatfield, 0083 Pretoria, South Africa (postal address: P.O. Box 12629 Hatfield 0028, Pretoria) Tel: (27-12) 431-3100 Fax: (27-12) 431-3134

E-mail: Rkagia@worldbank.org Web: http://www.worldbank.org/za \

Sri Lanka
Ms. Naoko Ishii The World Bank 1st Floor, DFCC Building 73/5, Galle Road Colombo 3, Sri Lanka (postal address: P.O. Box 1761) Tel: (94-11) 2448070/1 Fax: (94-11) 2440357 E-mail: Nishii@worldbank.org Web: http://www.worldbank.org/srilanka

Sudan, Juba
Mr. Laurence Clarke The World Bank Sub-office Ministries Complex Kololo Road, Opposite Ministry of Health Juba, Sudan (postal address: P.O. Box 30577 ) Tel: (249-91) 231-1292 / 239-8443

Tajikistan
Ms. Chiara Bronchi The World Bank Shevchenko Str. 91-10 734025 Dushanbe, Tajikistan Tel: (992-372) 210-756, 210-381

Fax: (992-372) 510-042 E-Mail: Cbronchi@worldbank.org Web: http://www.worldbank.org/tj

Thailand
Mr. Ian C. Porter The World Bank 30th Floor, Siam Tower 989 Rama 1 Road, Pathumwan Bangkok 10330, Thailand Tel: (66-2) 686-8300 Fax: (66-2) 686-8301 E-mail: Iporter@worldbank.org Web: http://www.worldbank.or.th

Turkey
Mr. Ulrich Zachau The World Bank Ugur Mumcu Caddesi No.88, Kat: 2 06700 Gaziosmanpasa Ankara, Turkey Tel: (90-312) 459 83 00 Fax: (90-312) 446 24 42 E-mail: Uzachau@worldbank.org Web: http://www.worldbank.org.tr/

Uruguay
Mr. David E. Yuravlivker Banco Mundial

Calle Buenos Aires 570, Piso 3 CP11000 Montevideo, Uruguay Tel: (598-2) 916-9400 Fax: (598-2) 916-9400 ext. 3701 E-mail: Dyuravlivker@worldbank.org Web: http://www.worldbank.org/uy

Vietnam
The World Bank 63 Ly Thai To, 8th Floor Hoan Kiem District Hanoi, Vietnam Tel: (84-4) 934-6600 Fax: (84-4) 934-6597 Web: http://www.worldbank.org/vn

Conclusion

Efforts to promote aid for trade, though perhaps taking a different course from that of the negotiators in Hong Kong, China, would have foreseen, are nonetheless paying dividends. Countriesat least until the onset of global recessionwere demanding more aid for trade, donors were supplying it, and countries that needed it were, in general, getting it. Moreover, countries were, with increasing frequency, making trade a central component of their development strategies. Finally, some partial evidence suggests that aid for trade is producing results. As evident from this report, the World Bank Group has been actively participating in this aid-for-trade process. One measure of the extent to which aid for trade has been integrated into national development strategies is the prominence given to trade and competitiveness in the Country Assistance Strategies developed by the World Bank and partner countries: some two thirds of CASs now identifies trade as a priority area. This is one reason why trade-related lending and other services to countries have grown significantly. These favorable developments should not lead to complacency. The financial crisis and global recession will undoubtedly put pressure on aid for trade, from both the supply side, as donors turn their attention to paring back deficits, and the demand side, as countries use scarce development assistance for maintaining social expenditures. Yet, if anything, the global recession has increased the urgency of positioning countries to take advantage of a recovery in the global economywhenever it occurs. That work must begin now. Environmental problems in developing countries remain serious and are increasing in many places, reflecting both the Bank Group's limited ability to affect largerincluding marketforces that have an impact on the environment and the need for greater attention to

these concerns on the part of the countries themselves and the donor community as a whole. Even though the Bank has provided considerable lending for urban sanitation and environmental management in China and elsewhere, poor water and air quality continue to generate serious public health problems in megacities and other urban areas. Global greenhouse gases continue to rise, especially in China and India (as well as in some developed countries), and the Bank has only recently stepped up its efforts to help the most vulnerable nations in South Asia, Sub-Saharan Africa, and elsewhere adapt to the likely impacts of climate change. Finally, despite Bank-supported interventions in support of sustainable development in the Brazilian Amazon over the past several decades, deforestation continues at high rates and could further accelerate, depending on the evolution of international and domestic demand for beef, soybeans, timber, and ethanol, together with government infrastructure and private agribusiness investments. While the Bank Group cannot be expected to address all environmental priorities and ultimately is limited by what its clients want it to do, it can nonetheless be more proactive in its efforts to help them address local and global environmental challenges, both through its own support and by working more effectively with partner institutions that share the same objectives. The world has changed considerably since 2001. The role of the private sector in international financial flowsand of IFC and MIGA operations within the World Bank Grouphas sharply expanded, while global environmental challenges, especially climate change, and transnational environmental footprints, have become increasingly important and visible. In this context, and in view of its efforts to promote inclusive and sustainable globalization, the World Bank Group's strategy for the environment needs to be updated.

It is crucial that the World Bank Group have a clear definition of its role in support of its clients' efforts to achieve greater environmental sustainability in the years ahead. Consultations carried out during this evaluation have revealed that a broad range of external stakeholders, including the private sector and civil society, are looking to the World Bank Group for this definition. Representatives of the private sector have indicated, moreover, a desire to continue to engage actively, not only with IFC and MIGA in relation to environmental sustainability concerns, but more directly with the World Bank as well. Strengthening coordination and collaboration in relation to the environment within the World Bank Group, at both the corporate and country levels, should be a central part of the updated strategy. This is particularly important for countries where the Bank Group has its largest portfolios and whose environmental management challenges have the most significant global implications. It also reflects a broader need for more effective public-private partnerships in countries where the Bank Group operates, as well as for greater transfers and development of appropriate technologies, and support for environmentally friendly market transformation more generally. Stronger intra-World Bank Group collaboration is needed across the board, including in work with its clients to improve environmental performance of small and medium size enterprises, as well as with larger firms and financial intermediaries, through better supply chain management and capacity building, among other measures. The evaluation confirms that partnerships canand often doplay a vital role in enhancing the effectiveness of Bank Group support for environmental sustainability. But it has also shown that these

partnerships have not always been as effective as they might have been, and thus could and should be enhanced. This is especially important given the growing scale and seriousness of many environmental problems at both the national and global levels. The Bank Group's existing environment-related partnerships with other UN agencies (especially UNEP and UNDP), with programs such as the GEF, with major international environmental NGOs, and with the private sector should thus be strengthened. The Bank Group should also collaborate with the multilateral development banks to promote the use of IFC Performance Standards and engage with more financial institutions to adopt Equator Principles, while helping them to improve their compliance reporting. Partnerships in the public and private sectors should also be a central theme in updating the World Bank Group environment strategy, a process that should include active consultations with such partners. All of this, however, including future joint activity in relation to climate change, must continue to occur in the context of the Bank Group's overriding poverty reduction and sustainable development mission. Environmental issues, while increasingly important, are only part of the dialogue. World Bank Group clients face many other challenges, and the Bank Group must grapple with many other demands as well. While helping clients address climate change (including responding better to both mitigation and adaptation needs) is critical, it is equally important to ensure that other persisting environmental challengessuch as biodiversity conservation, water resource management, and local pollution abatementcontinue to receive adequate priority and attention.

In updating the strategy, the economic benefits of environmental investments and the need to avoid the costs of inaction should also be brought out, together with the links to poverty reduction and growth in both the short and longer term. The Bank Group, particularly the World Bank, needs to strengthen its information base regarding the environmental aspects, results, and impacts of its interventions. This evaluation has found shortcomings in this regard at both the individual project and portfolio levels. Better tracking of the environmental effects of Bank Group advisory and other no lending services would also be desirable. Monitoring, evaluation, and reporting need to be enhanced at all levels, as does environment-related research and knowledge generation and dissemination more generally, both within the World Bank Group and in conjunction with external collaborators. The Bank Group can and should learn more from the relevant experience of other organizations, including its major development and country partners. In short, the World Bank Group's role as a knowledge bank on matters related to the environment and sustainable development needs to be reinforced.

Reference :

Brinton, P (2003) Integrating the Least Developed Countries into the World Trading System: The Current Impact of EU Preferences under Everything But Arms, Policy Research Working Document 3018, World Bank, forthcoming in the Journal of World Trade. Brenton, P and M Manchin (2003) ,Making EU Trade Agreements Work: The Role of Rules of Origin, The World Economy, forthcoming. Estevadeordal, A, and K Suominen (2003) Rules of Origin in FTAs in Europe and the Americas: Issues and Implications for the EUMercosur Inter-Regional Association Agreement, mimeo, InterAmerican Development Bank. Herin, J (1986) Rules of Origin and Differences Between Tariff Levels in EFTA and in the EC, EFTA Secretariat, Geneva. WTO (2002) Rules of Origin Regimes In Regional Trade Agreements,WT/REG/W/45.

http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES

The end