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| Sunday, 18 July 2004 |
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WB lauds policy framework by Gamini Warushamana World Bank (WB) South Asia Region Vice President Praful Patel said the policy framework of the new government seemed good and WB was looking forward to more details such as how the necessary finances will be raised. The bank was willing to work with the government to implement the programs. "That is what we are here for " he said answering a question raised by a journalist. Patel also said World Bank assistance will be continued as previously while aid pledged at the Tokyo conference by donors is subject to progress in the peace process. However WB project and program assistance was not conditional. Approved money under the Poverty Reduction Support Credit (PRSC) program will be disbursed. If peace prevails more assistance could be given, he added. Patel reiterated the new vision of the WB which its President James D. Wolfensson declared at the Shanghai conference last month. "We have learnt many important lessons from the 1980s, when the name of the Bank was synonymous with 'structural adjustments'. Most importantly, it taught us that sustained economic reforms are possible only if the policies are 'owned' by the people of the country. The bank cannot and should not impose policies on a client country. Instead our role is to provide the best advice we can give to help the Government in its policy formulation process. If the program is truly owned by citizens of the country and we think the policies will help achieve the country's objectives, we then support the program with financial assistance," Patel said addressing the Media. Patel is concerned over the erosion of the high levels of equity Sri Lanka achieved in the past. He pointed out that much of the growth is concentrated in and around Colombo which now produces over half of the country's GDP. Meanwhile, in the rural areas - where 70% of the population lives - poverty has hardly declined; in the estate sector it has increased by 50%. "Unless this problem is addressed frontally, not only will the country continue to fall short of its growth potential, but the stability of this once-equitable society may be threatened" he warned. Patel urged journalists to make people aware of the danger of HIV/AIDS by sharing the knowledge and experience gathered at the 15th International HIV/ AIDS conference held in Bangkok recently. He warned that Sri Lanka should not be complacent about the prevailing low rate of AIDS victims and the cultural and other conditions that control the spread of the disease, since, few years ago the rate in Africa was also the same. Patel was on a two-day visit to Colombo to celebrate the 50th anniversary of development cooperation between Sri Lanka and the WB. In its 50 years partnership WB has provided nearly US$ 3.0 billion in financial assistance through a total of 96 projects. WB has provided financial and technical support on a wide range of areas including development of energy, transport, telecommunication, health, education, water and sanitation services and to improve the environment for private sector-led growth and enhance agriculture productivity. WB country Director Peter Harold said privatisation of the People's Bank is not a condition. The government is continuing the diagnosing process of the bank's problems and what the WB want is improving the efficiency and reducing the cost of borrowings. |
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