67043
               UKRAINE: COUNTRY PARTNERSHIP STRATEGY FY12-16

                                     CHAIR’S SUMMING UP

                                  Meeting of Executive Directors

                                           February 16, 2012


       Executive Directors discussed the joint IBRD/IFC Country Partnership Strategy (CPS) for
Ukraine for the period FY12-16 (R2012-0010[IFC/R2012-0019]).

        Directors commended the Ukrainian authorities for the progress achieved in poverty reduction,
the relatively good medium-term growth prospects and the low levels of public debt by regional
standards. At the same time, Directors recognized that Ukraine is emerging from the 2009 crisis with
some unaddressed structural weaknesses, and noted that many spheres of economic and social activity
were in need of fundamental reforms. Directors also noted that the authorities’ commitment to sustaining
progress in critical reform areas, especially with regard to public financial management and in the energy
and banking sectors, would be important.

         Directors expressed broad support for the CPS and found that it responded well to Ukraine’s
developmental challenges. They welcomed the two pillars of the CPS, namely Pillar 1 which focuses on
improving public services, and a more transparent and accountable use of public resources; and Pillar II
which focuses on growth, competitiveness and job creation, improvements in the business climate, and
channeling public investment into critical public infrastructure. Directors noted that the CPS was a
collaborative roadmap, based on the country’s Economic Reform Program, as well as broad consultations
with the private sector and civil society stakeholders. Directors welcomed the calibrated approach to the
Bank Group's assistance to Ukraine in the new CPS, to match the scope and instruments of support to the
authorities' commitment and capacity in areas of potential engagement. Executive Directors also
welcomed the incorporation of the lessons learned from the implementation of the previous CPS,
including the emphasis on accelerating the implementation of projects by IBRD.

       Directors highlighted economic vulnerabilities and the need to strengthen confidence including by
addressing fiscal imbalances and more broadly ensuring debt sustainability. Executive Directors urged
robust measures for successful implementation and emphasized the need to monitor program
achievements, and overall policy performance. Directors further urged IFC and MIGA to expand
activities in Ukraine, particularly among small and medium enterprises. Several Directors suggested that
greater attention be paid to further mainstreaming gender in the World Bank Group-supported program in
Ukraine.

        Finally, Directors encouraged close coordination with civil society and the business community
and encouraged cooperation between Ukraine and its partners to deal with economic challenges and
external risks to ensure sustainable growth.




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 This summary is not an approved record.