Country Partnership Framework for Romania for the Period FY19-23
Romania has achieved impressive successes, yet it continues to face formidable challenges. This growing divide is, in effect, producing two very different Romanias. Significant risks of climate and natural disaster events threaten the country’s eco...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/954721529638270108/Romania-Country-partnership-framework-for-the-period-FY19-FY23 http://hdl.handle.net/10986/29954 |
| Summary: | Romania has achieved impressive
successes, yet it continues to face formidable challenges.
This growing divide is, in effect, producing two very
different Romanias. Significant risks of climate and natural
disaster events threaten the country’s economic resilience,
and require urgent policy reform and infrastructure
investment. The recently completed Systematic Country
Diagnostic (SCD) identifies the most critical constraints to
sustainable economic growth and shared prosperity. This has
limited the Government’s ability to implement important
public policies to boost the economy’s growth potential,
build key economic infrastructure, create equal
opportunities and jobs for all citizens, and improve
resilience to natural disasters. Shortcomings in public
service delivery, especially to the poor, are often caused
by large under performing State-Owned Enterprises (SOEs),
but also by inefficient policies and low administrative
capacity. The World Bank Group (WBG) is uniquely positioned
to support Romania by helping to strengthen its institutions
and accelerate the country’s convergence with more advanced
EU states. Strengthening institutions for improved service
delivery and creating or deepening markets for the private
sector are areas where the WBG has comparative advantage,
playing a selective, catalytic and innovative role. Future
WBG activities would have to show that they build essential
institutional capacity and/or bring clear IFC additionality.
WBG financing would be assessed using the following three
additional filters: (i) developing innovative solutions that
benefit the most poor and vulnerable, including Roma; (ii)
maximizing finance for development, including catalyzing
private sector investment or leveraging additional resources
(e.g., better absorption of EU funds); and/or (iii)
contributing to regional and global public goods. In other
words, WBG will support investment, advisory or knowledge
operations in Romania that help build institutions and
markets for sustainable and broad-base growth, and share
global knowledge. The FY19-23 CPF proposes a selective
program that addresses the main constraints identified in
the SCD. The planned WBG program will focus on all priority
areas identified in the SCD, with the first, building
institutions, serving as the prerequisite for advancing on
the other three: (i) ensure equal opportunities for all;
(ii) catalyze private sector growth and competitiveness; and
(iii) build resilience to shocks. The proposed CPF is more
focused than previous ones, drawing on the lessons learned
to fit the specific policy environment of Romania. First,
set modest objectives: past projects targeting complex and
ambitious reforms did not adequately factor in issues
related to political and legislative volatility and weak
capacity. Second, leverage all instruments : successes were
achieved using a mix of instruments—lending and advisory—for
impact. Third, support the implementation of strategies for
real institutional change: a greater emphasis on hands-on
implementation support embedded in investment operations is
an effective complement to ongoing capacity building efforts
through a broad RAS program. |
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