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                                 The Republic of the Marshall Islands

                                    Country Partnership Strategy
                                                and
                           First ICT Sector Development Policy Operation

                                  Meeting of the Executive Directors

                                             March 19, 2013


                                         Chair’s Summing Up ∗

       The Executive Directors discussed the joint IDA/IFC Country Partnership Strategy (CPS) for the
Republic of the Marshall Islands for FY13-16 (IDA/R2013-0031[IFC/R2013-0038]).

         Directors welcomed this first CPS which reflects the World Bank Group’s commitment to
transition from a regional engagement framework to an individual country strategy. They also
appreciated its alignment with the country’s National Strategic Development Plan “Vision 2018� and the
recognition of the particular development challenges facing the Marshall Islands, deriving from the small
size of its economy and its geographic remoteness. Directors supported the program of assistance to
strengthen economic governance, including public financial management, in the run-up to the 2023
transition to a “post-Compact economy�, while building resilience to economic shocks, natural disasters
and climate change.

        Directors stressed the importance of diversifying the economic base and strengthening private
sector development, engaging in regional work in the fisheries sector, developing the ICT sector,
reforming the energy sector, and improving the management of state-owned enterprises.           They
appreciated the commitment to integrate World Bank and IFC engagement in the Marshall Islands, and
encouraged World Bank Group efforts to collaborate with development partners in implementing the
CPS.

        While the country is on track to achieve some Millennium Development Goals, Directors urged
the World Bank Group to increase its support to eradicating poverty and combating HIV/AIDS and other
diseases. Directors welcomed the emphasis on gender issues and the objective of ensuring that all aspects
of the World Bank Group’s program in the Marshall Islands were appropriately gender-informed.

                                        Summary of Discussion*

       With respect to the operation, the Executive Directors approved the First ICT Sector
Development Policy Operation in the amount of SDR 2.0 million (US$ 3.0 million equivalent) on the
payment terms and conditions set out in the President’s Memorandum (IDA/R2013-0034).

          They agreed with the program’s objectives, particularly its focus on improving connectivity and
facilitating an enabling environment for liberalization of the sector, as part of a broader regional effort
throughout the Pacific. Directors acknowledged the risks associated with the project and strategies to
mitigate them. Directors also highlighted the need to build local institutional capacity and welcomed
collaboration among development partners in addressing these challenges.




∗
 This summary is not an approved record.