_ _ _ _ _ _ _ _ _ _ _ 71 HI Ui H F\M . W 5U E e m >m lU.) \ 90 U U u\ U U ) u u L)D [i rhe M'indaniao Workinig fIT(ARMM) Gov. Parouk Group kivi wU) discussea I 20 March 2003 during Columwus FunctiOn Roo.Discovm Valued Partnership Match tne Uevelopinent irtloasCenter. PasiCtE Mr. Pulley commended the agenda for Mindanao, t \ | fs,'i" > t R | g overnment for holding the particularly on arrivinig at a j . -- meeting, "which speaks consensus among the doniors 1/ J gl -\/ I or highly of the value placed and the Pniiippine "77Y 2 ~ A by the governimenit on our government on key issues = a t'KIJ partnershipsinpursuing such as lasting peace and a - p < - 1-4j.A peace and development in poverty-reducing PresidentialAssistont forMindonooJesus Dureza (4th from right), choirman of the Working Mindanao." He said that development in the region . Group, and WB Country Director Robert Vance Pulley (3rd from right), co-chairmon, lead the the timing of the Group's discussions on the Mindonoo development agenda The Group is chaired by the ~ gbmeeitng was very opportune Philippine government, represented by The eeting was atteded by key cabiet because it came when numerous Presidential Assistant for Mindanao Jesus T adtride i by k developments at both the global and local Dureza, and co-chaired by the World o ;c;a,s anLiLiu 22 ionor ountr;es ani uo l evels are taking place that impact on the Bank, represented by WB Country organizations, as well as representatives peace, reconstruction and development Director Robert Vance Pulley. iiLifl 'LE~iLi Iloli LiL~LiLilowork in Mlindanao. agencies, local government units, businiess o The M'X'r"--' sirves as a f iruin fo1r counIi unitiy, and non-governmuent Mr. PLIlley said rhat at the global level, coordination and collaboration on donor- organizationis in Mindanao. there is a heightened state of security assisted development efforts in Mindanao resulting from ongoing actions worldwide it facilitates an exchange of information Among the government officials were against terrorism and at the country level, Se io r Consulthe contiuine conflict in Mindanao. ewnooradhePiippie Domniguez, Social Welfare and goverinment on seCirity and other conceris Development Secretary Dinky Soliman, Elusive Peace rellated to officia!l development aSS;Starice DvlpetSctayinyoimnEusePae (ODA). It foi1.r medLnaiLiLvLlLii0 as11 areslt ofthe Socio-Economic Planiniig Secretary The Philippine government and donors (ODA). It was formed as a result ofthe Romulo Neri, Finance Undersecretary have earlier pointed to uncertain peace request of .President Gloria JAacapagaLs Arroyo in November 2001 to the World JLanita D Amatong, President'al Adv'ser situation in Mindanao as a major Bank totake the lead in coordinating the on the Peace Process Eduardo Ernita, constraint in planning, implementing and National Anti-Poverty Commission deriving results from development activities donors' peace and reconstrLction efforts , dn M pndanaon Chairperson Tereslta Quintos Deles, and in the area. Autonomous Region of Muslim Mindanao (Gi 7 * Donors Support RP's Economic Program p2 Grant to Strengthen Gov'tAgencies p6 Tahis ss Te wB-Financed ProJectsPeruormiBetter p3 pYideoConferenceonWDR2004p7 In 1S h Issue *The Bank's New Recruits p4-S *WB Publications p8 Grant for RP's Ozone-Saving Project p6 Donors Support Government Economic Program deficit to P31.5 billion, down 12.25% from P35.9 billion as of February 2002. The donors have also commended the government for recent improvements in the implementation of the country's ODA. However, they have reiterated the need for continued budget support for foreign- assisted projects (FAPs) this year. The implementation of World Bank- financed projects has improved, for U9vl t > ? S instance. During the second half of 2002 iJUly to December) the disbursements of Bank-assisted projects totaled US$101 (L-R) Agronon Reform Secretory Roberto Pogdongonon, Budget Secretary Emilio Boncodei, Socoo-Economic Plonning million, up by 66% from only US$61 Secretory Romulo Nen, WB Country Director Robert Vonce Pulley, ond Finonce SecretoryJose Isidro Comocho million in the same period last year. "Without sufficient budget cover for FAPs, the recent acceleration in the pace of ODA Urhe donor community supports the anid there is a broad donor support for the absorption would be seriously threatened Philippine government's economic government to address this challenge," and could adversely affect poverty development program in 2003, which will said WB Coulnitry Director Robert Vanice reductiol programs, which the overall be driven by fiscal discipline, market and Pulley, who spoke on behalf of the donior ODA project program supports,' Mr structural reforms, and good governance, community. Pulley explained. The donors to the country's Official Economy 'Back on Track' Budget Secretary Emilia Boncodin said Development Assistance (ODA) - the Finance Secretary Jose Isidro Camacho the Department of Budget and World Bank, the Asian Development sad the Philippine economy is back on a Management has proposed a higher budget Bank, and other development institutions growth anid solid economic footing for FAPs for 2003 compared to last year's. considering that the fiscal program was Further, she said measures are underway that aims to accelerate economic growth under severe pressure last year. "The to improve the implementation of ODA anid reduce poverty, measures we instituted mid-year have put such as improvements in the operation of In a meeting early this year, the donors our fiscal program back on track," he said. project management offices, as well as in and government economic managers The measures included going after compensation and consultancy fees, FAPs agreed to pursue the country's delinquient VAT tax payers and deliniquent database, user guide and client training. development priorities for 2003, such as large taxpayers from banks and insurance Socio-Economic Plannling Secretary the implementation of the Procurement companies, continued fight against Romulo Neri said the government will Law and the Special Purpose Vehicle Act smuggling of basic goods like rice, meat fast track the passage of key bills, incliding and the strengthening of the Anti-Money and vegetables, and filing of 26 criminal those that will enhance efforts to reduce Laundering Act. cases and 34 administrative cases against the budget deficit, and measures that Moreover, they emphasized the importance violators. support agricultlre and small and medium of carrying out revenue-enhancement Last year, the government's budget deficit enterprises. measures and providing sufficient budget totaled P212.7 billion or 5.3% of gross He said within 18 months, the government for foreign-assisted projects (FAPs) under domestic product (GDP), which was much will push for policies that will boost ODA. worse than the original target of PI 30 investors' confidence in the economy and "Fiscal management, particularly revenue billion or 3. 1 % of GDP However, national implement microeconomic reforms such enhancemenlt, continue to be the major government expenditure had stabilized as jumpstarting housing and building economicmet chal e tob the g ment through February 2003, helping to lower infrastructure. economic chanenge to the government,' 2 Faster Implementation of WB-Assisted Projects Cited The impleiiieiitatioii of World Baiik- tc sustaini this improvement. "To maintain targeted five years. ishe implemenetatio of World Bank- this pace, the challenge is to sustain timely assisted projects has improved, according anid adequate provision of counterpart Among 10 clit countres i East Asia, to a report on the total disbursemenits of hinds amid the government's tight budget the Philippinies rose from the bottom slot Banik-assisted projects from Jully 2002 to situation," he said. that it shared with Malaysia in April 2003. implementationi pace in June 2001 to sixth The improved disbursement ratio would place in April 2003, ahead of Indonesia Gmean that the Philippines would reach and Vietnam, and just slightly behind projects reached US$172 millioni from the same level oFdisbursement it had prior China. July 2002 to April 2003, ulp by 54% from to 1999 anid would shorteni the average @ only US$112 million dur'ing the samiie project implementation period to the period last year. Ftirther, the disbursement ratio rose by 60%, from 12.3% last year to 19.7% this Graph 1: Actual Disbursements (FY99-03) year. 300 A disbLirsement ratio of 19.7% meanis that at this pace, the possible annual ratio 250 by end-Junie 2003 would be at least 22%. 252 Last year's disbursement ratio was only o0 Forecast 15%, implying a project implementation v 203 i50 period of 6.7 years. I 50 FY03Target VI 00o 126 136 The five projects which had the highest disbursemenits from July 2002 to April 50 2003 were Rural Finanice III, Social Expenditure Managemenit Project 1, 0 02.03 Transmissioni Grid Reinforcement Project, 99 00 0 l 02 03 National Roads Improvemilent and FiscalYear Management Project, and Third Elementary Education Project. These projects promote investments in human Graph 2: Disbursement Ratio (FY99-03) resources and infrastructure, a priority in the government's anti-poverty agenda. 25% WB Country Director Robert Vance 22% Pulley said he was very pleased with the 20% Forecast progress of the government in / 7% implementing most Bank-financed 15% 17% FY03 Target projects. He attributed the improveirient \5% to the timely intenrention of governmeit 12% oversight and implemeniting agencies and 10% adequate provision of counterpart funds. 5% Early Benefits "With this turnaround, the real winners 0% are the beneficiaries of the projects, mosdy 99 00 01 02 03 the poor, because the faster the Fiscal Year implementation, the faster the delivery of benefits and services to them," he said. Forecast for end-FY03 based on 10 months auly 2002 -Aprdi 2003) performance However, Mr. Pulley stressed the need The New Recruits:Two Women, Two Men Talk Personal JOSE ERIC "JORIC" MAGLANQUE Knowledge Management Officer "Being able to accomplish your job means having an impact on people's lives. At the end of a full day, I go home happy and contentedfor helping pursue a noble cause." . . . . Joric joined the World Bank in December !i 2002 as Knowledge Management Officer. ,i/ He maniages the Bank's Knowledge Management Program in the Philippines 1Y.4Yi v aimed at improving how the Bank and its g __________i_r-__ partners, create, share, and apply (L-R) Poyen Tienzo,Joric Moglonque, Gnd Molou Baduo knowledge to improve operations and development effectiveness. his family at home. "I rush home to play develop and manage three health-related "I help people learn how to fish, instead with my daughters, who are nine years human development projects: Early of just giving them fish," he says. "I do old and one year old (and another due Childhood Development, the Second not necessarily have to know how to fish; next month). That's really when I'm Women's Health and Safe Motherhood I just need to know who does and share happiest," he says. Project, and the Health Sector Reform what he knows with those who need toD knbw." . He also likes playing basketball and chess, Project. and reading non-fiction (except if it's A Doctor of Medicine, Poyen said her Before joining the Bank, Joric spent six Tolkien). "I also play in a blues band - educational background provides her the years in the private sector as a manager The Soul Benders - doing occasional technical know-how, along with for global knowledge management of concerts and gigs. I also play and sing solo knowledge of the prevailing culture of the Accentmre, formerly Andersen Consulting. acoustic blues in clubs, concerts, and medical field. However, she shied away He led a team that managed content radio," he adds. "Am I that good? Well, from the four walls of the hospital and packaging and knowledge management I didn't quit my day job, did l?" instead went to the countryside as a channels of the global government industry . community-based medical practitioner. practice of Accenture. Joric obtained his Bachelor Arts degree in She became involved with grassroots Organizational Communication from UP . . ,, w To Joric, working for the Bank is both Manila and his Masters in Public organmzations, Nits, and local challenging and rewarding. "I am Administration from UP Diliman. government units, giVing her the challenged by the many dimensions of opportunity to work with people from all knowledge management applied in FLORENCE "POYEN" TIENZO walks of life and nnderstand the realities development; the multiple objectives that Human Development Specialist in the field. need to be met; the various activities that I Before joining the Bank, she worked with need to be coordin,ted and in sync with 'My own motivation in work is various noni-gov terBament orgasizatios for many internal and external initiatives; and knowing that this would contribute to 1O years, specifically in such fields as the many areas for prdfessional growth the improvement of the health care program management, training, and and program improvement." delivery system and subsequent health research. Most of the projects she handled He adds: "Being able to accomplish your care of the family. You may say I am involved child survival and reproductive job means having an impact on people's more ofa health advocate rather than health issues. lives. At the end of a full day, I go home a clinician. " Poyen says she finds her work in the Bank happy and contented for helping puLrsue She prefers to be called Poyen, a Human "exciting." "First, the idea of assisting a noble cause." Development Specialist who joined the projects that would have a major impact After office hours, Joric prefers to be with Bank on Jantiary 2, 2003. She helps on the health service delivery system makes 4 I~~~~~~~~~~~~~~~~~~~~~~~ it most meaninigful. Second, I find my To Malou, working for the Bank has given as a Senior Financial Management job as an integration of my experience her the opportinity to deal with different Specialist. "Part of my job is to ensure and imny educational background. But I cultures. "The work environment in the that the Bank's money are used for their know there is so much more I could learn Bank is very dynanmic. There is always intended objectives." through the projects that I am assisting," something new to explore." Before joining the Bank, Ernie, a Certified she relates. "And third, the challenging B r o1n h ak re etfe par re. is thift, mre fro bening Moreover, after a day of processing Public Accountant, provided professional a direct implemenstor to a more supportive applications and attending to the services such as accounting, auditing and aroe" borrower's inquiries, "I know that I managemenit consulting. role" contributed my little share to the Furtherimiore, Poyen says she appreciates development of our country." She adds: Ernie began his career at SGV & Co., the cltuire that exists in the Banik, wherein "Whatever I have done ends uip with the w ere he worked for 17 years and became a work-life balance orientation is pursued. beneficiaries receiving the funds needed a senior manager before joinng the core "I noticed how the various interactioni to implement the projects." group that organized PYinongbayan & venues-gym, birthday celebratiols-give Malou relates that before joinin1g the Bank, eventually became a partner. us a "pause" in our work and allow us to usterapu ior and allow us to she was very busy with her studies (she He later joined a publicly listed interact and enjoy each other's company. finislhed her MBA at De La Salle nultinatin om pany ngaed I am also lucky to have a great team, University) and used her free time to Multinatonal compay engaged in wherein all of the members have served go banking finaancial services, manufacturing, out with friends and watch the latest Poyen enjoys the "pause" her gym work- last December, I imnmediately grabbed a company, Ernie became the first local vice out provides. "I always want to keep fit good novel." president, group financial controller and asomuch provs I can " On her sparetimeshetreasurer. as mich as I can." On her spare time, she She likes listeninig to good music and says she enjoys listening to music, going travelling. She also enjoys bowlinag every oftert Erepre was hired as chief finaace for a swim, enjoying nature's wonders, or Thrsday with other Bank staff. "It officer to represent foreign vestors a just being with family and friends. good way to learn the sport, Id d local entertainment group of companies meet other Bank staff in a relaxed that produces local movies, distributes MA. LUISA "MALOU" BADUA atmosphere. Recently, I joined the Bank's foreign films, distributes and rents video MA.sLUrSemen MAnaLys BADfitness program. It is a good way to through a national chain of outlets, and DisbursementAnalyst maintain a healthy body," she says. produces concerts and sports events. His last job before joining the Bank was 'After a day's work, Iflndfi,fllent ,as a managing director of Balanced whenever I tlhink that I have Scorecard Management, Inc., a contributed rmy little share to the management consulting firm that developmentofourcountry. Whatever specializes in improving profits through I have done ends up with the an integrated evaluation of all functional beneficiaries receiving thefinds needed areas that drives profitability. to imiplemzeni t the projects." Ernie finds his Job at the Bank fulfilling Malou joined the Bank on December 9, because of the social relevance and impact 2002 as a Disbursement Analyst. Her job of the Bank's projects. "After working in requires her to ensure the finanicial the private sector for many years, I feel accountability of borrowers, specifically that now is the timne to render service to that loan proceeds are used for the the country." purposes intended and eligible in ERNESTO "ERNIE" DIAZ After office, Ernie prefers to commune accordance with Bank's policies and Senior Financial Management Specialist with nature. "I am a lover of nature and procedures. pet animals, particularly dogs. I have big She says at present, she's doing just one After working i the private sector and small dogs-a rottweiler and a shih aspect of her job. "After our on-the-job for many years, Ifeel that now is tzu. I enjoy gardening, too." For physical training in July, I am sure that our work the time to render service to the fitness, he jogs regularly. His new interest: will be much more challenging and I'm coiuntry. bowling. "I want to go bowling, looking forxvard to it." particularly now that I know that this is Ernie joined the Bank on March 3, 2003 a popular sport in the Bank." 3 5 c - Philippine Gov't Receives US$10.6M For Phaseout of Ozone-Depleting CFCs The Philippine government recently received a grant of US$10.58 million for . the gradual phaseout its consumption of all ozone-depleting chlorofluorocarbons (CFCs) by 2010. CFCs are non-toxic, noni-flammable chemicals containing atoms of carbon, chlorine and fluorine. They are used as solvents and refrigerants in the manufacture of aerosol sprays, blowinig agents for foams i and packing materials. The grant for the project-the Philippine (L-R) DENR Secretory Elisea Gozun, WB Country Director Robert Vance Pulley, Finonce Secretary National CFC Phaseout Plan-was recently Jose Isidro Camacho.and LandBonk President Morgorito Teves approved by the Executive Committee of the Multilateral Fund for the The Montreal Protocol Onl Substances that annual funding tranches to CFC Implemenitationi of the Montreal Protocol Deplete the Ozone Layer was adopted in consumptioni reduction targets as measured (MFMP), of which the World Bank is one 1987 as an interniational treaty to eliminate by the achievement of specified activities in of the four implementing agencies. the production and consumption of ozone- both the manufacturing and refrigeration The agreement was signed by Finance depleting chemicals, with developing servicing sectors. Secretary Jose Isidro Camacho and World countries benefiting from a 10-year grace The Philippines' Department of Bank Country Director Robert Vance Pulley. perio Environment and Natural Resources worked Environment and Natural Resources As an implementing agency, the World Bank in close cooperation with the World Bank Secretary Elisea Gozun and Land Bank of aims to help client countries accomplish and Sweden's Stockholm Environmient the Philippines President Margarito Teves their ozone protection objectives throtIgh Institute to engage relevant country witnessed the signing. strategic planninlg, policy formulation, and stakeholders, including private, government The project will enable the Philippines to technical support in project identification, and non-government organizations. phase out 2,018 ozone-depleting potential preparation, and implementation. tons of CFC consumptioln when Montreal This commitment is secured through a Protocol CFC phaseout obligations take fuill performance-based agreement between the O force in 2010. MFMP and the Philippines, which ties US$1.3M Grant to Help Strengthen Gov'tAgencies The World Bank has approved two grants > I of US$1.3 million for the strengthening of two government agencies - the Department r of Budget and Management (DBM) and the Civil Service Commission (CSC). The granits will help design and implement key measures to improve the operations of these departimenits over the next two years. The DBM will receive a grant of US$1,093,800, which will be tised to prepare = _ a project called Public Sector Strengthening, (L-R) Japanese Embossy's Hiromichi Sokuma, Budget Undersecretary Lauro Pascua, WB wlhich aims to improve the operations of the Country Director Robert Vance Pulley, and CSC Chairperson Kanna David public sector. and Human Resource Development Grant policies that will rationalize compensation In particular, the granit will strengthen the facility, which is administered by the World and employment. management and poverty focus of public Bank. The grants will finance the project preparation expenditures, control the fiscal weight of the The grant of US$29 1,000 from the Batnk's activities and requirements, which inCILude wage bill, streamline public administration, Institurional Development Fund will be consultancy services, stakeholder enhance the quality of civil service, and managed by the Civil Service Commission. consultations, equipment and training. improve the department's monitorinig and evaluation capacity. The grant aims to strengtheni the governm1ent's capacity to control the civil The grant will come from the Japan's lolicy service wage bill and employment and develop 6 -~ ~~~~~~~~~ - _) J Mindanao Working Group Acts To Reach Mindanao Consensus The peace accord signed by the governimlenit "Until a peaceful state is reached, the job HIGHLIGHTS OF THE MWG MEETING with the Moro Islamic Liberation Front of development will be dotibly difficLlt, FROM THE DONORS' PERSPECTIVE (MILF) was earlier expected to be a major aild douibly expensive as we help the counlitry * Donors i-ecognized that peace and step towvards reaching a peace agreement and Mindaniaoani communities to build high pority to the government and the that would help to unleash the strong ininate and rebuild and the people to evacuate and donors.The Group would be an important developmenit potential of Mindaniao and resettle," Mr. Pulley emphasized. mechanism to jointly work towards this develeopment potentia objective ItS people. | - Donors appreciated the update on the programs that address the needs of evacuees, whose r-ehabilitation needed urgent attention from the government. W B C o nsults the P hilippines "~~~~~~~~~~~~~~Dmonors appreciated the clanfications on the govemment's policies on peace zones and the peace process and noted the government's o n W D R 2004 policy to pursue peace through negotiations rather than through military actions A ConSUltation video confence on the She added that the vidco conference gave the need to look atthvernent emphas zed draft overview of the World Development participants the opportullity to appreciate and the complexity of issues that impact on Report (WDR) 2004 was held on that the Bank is a knowledge bank. "That these causes, such as underdevelopment and FebrLiary 18, 2003 in the AIM-World is was a video conferenice hooked to four poverty Bank Global Distance Learning Center other coulitries made it even more * Security concerns, particular-ly of project personnel in Mindanao, continues to be an at the AIM campus in Makati City. interesting as one also learns from the issue, but donors are willing to provide The Philippines was one of the 14 perspectives of other countries." continued assistance to Mindanao despite The Philippities was oiie of the 14 ~~~~~~~~~~these security concerns countries consulted on the WDR 2004, In particular, the WDR 2004 will * Donors appreciated the clarifications of the which focuses on the theme: Making investigate how coun1tries can accelerate government on the institutional issues on Services Work for Poor 1People. The WDR progress towards the Millenium ODA for Mindanao, including the roles and status oftshe Southern Philippines is an invaluable guide to the economic, Development Goals (MDGs) by making DevelopmentA Authority and the Bangsamoro social and environmental state of the world services-health, education, water and Development Agency today. Each year the WDR provides in- sanitation-more accessible to poor * Donors hoped that the government would depth analysis of a specific aspect of people. look into the absence of an institutional delivery developm-nent. mechanism and provide donors with a Lloyd McKay, lead economist at the WB mechanism to facilitate the use of ODA About 50 persons from the governmeit, Office Manila, said success in reaching assistance academia, civil society, and businiess sectors the M DGs would depend not just on build the institutional capacity of the ARMM participated in the video conference, which faster economiiic growth and increased government.The Philippine government was led by the Global Development resources on the provision of these services. expressed appreciation for the various Learinig Network (GDLN) and External assistance being given by donors to strengthen gn ".Worldwide, corruption, inadequate the ARMM. Affairs. The sessions were chaired by ' c Shanta Devarajan, head of the WDR 2004 mon0itorinig, logjams, and weak incentives * Donors looked forward to the final design Shanta Dearajan, ead oftheVADR 200 are the -nain resons thatthesandevpcesationaer izatilinaofoaofcomprehensivev team, and WDR Co-Director Rirva are the main reasons that these services database on ODA programs in Mindanao to Reinikka. often fail to reach people. The report will help identify possible gaps in ODA assistance examine promising new approaches to to the region. "The WDR is quite well known in the these problems," he added. * On the Mindanao Investment Program, the Philippines and many people look forward government expressed reservations on the to its launch," said Leonora Gonzales, Past reports have considered such topics size of the investment program presented as the ole ofthe stae, trasitionDonors looked forward to the refinement of External Relations Officer of WB Office as the role of the state, transition the Mindanao Investment Program to be done Manila, who facilitated the video economies, labor, infrastcrcrtire, health, wrthin a realistic budget conference in the Philippinies. "I think the environment, and poverty. The reports Donors noted that there was an ongoing the participants fotund it beneficial as they are the Bank's best known contributions exercise to assess the country's performance to thinking about development. against the Millennium Development Goals, were able to ask clarifyilg qtLestions and and that It would be useful to conduct a similar in some instances, even challenged the exercise for Mindanao with donor support. thinking behind the WDR." LIU 7 t = * * Global Economic Global Development Finance 2003 Prospects 2003: (Analysis and Statistical Appendix): Striving for Investing to Unlock Stability in Development Finance Global Opportunities March2003 250 pages December 2002 244pages Since the late 1990s, an essential shift has taken place in the -Tr 1 pattern of private sector financial flows to developing countries. U nlccrtainties in the global finanicial Debt flows have fallen sharply, while equity flows, which are markets may have slowved the momcntum of the modest recovery that mainly foreign direct investments, have remained comparatively started in the late 2001 according to a new report, Global Economic Prospects and the Developing Countries 2003: Investing to Unlock Global robust. The shift from debt to equity ought to diminish the OpportuLlities. volatility of developing counitries' external finance and improve The report predicts that a sluggish global economic outlook, along with their access to techniology, markets, and management expertise. slower than anticipated growth in the next 12 to 18 months, will tindermine However, much more needs to be done to put developmenit progress in reducing poverty in developing countries. It details what actions finanice on a stable basis. need to be taken by rich countries and developing countries to increase growvth rates and accelerate poverry reduction in developing countries. The report finds that an actual global business cycle has emerged ProductivirV increases anid cffccrive investment arc fundamcntal conditions with the continuinig integration of developing countries into for poverty reduction and rapid growth. Establishment of these coniditions requires improvcmenir of the investmenit chmate - that is, the policy anld global produCtion, trade, and financial flows. Economic conditions iiscititional environmenit that fosters entrepreiieurshiip and prodtictive in rich countries now tend to be mirrored in developing countries inivesciiietit. through strengthlenied trade links, just-in-time logistics, and Global Econiomic Prospects 2003 anialyzes botl global and national stronger financial relations with affiliates and suppliers in middle- dimensions of investsiienit climiiate for developinig counitries. The report. income countries. * Explores the current state of the world economiiy and how it impacts the access to capital, exports, and growth prospects of developing counitries; Global Development Finance 2003 is unique in its depth of * Examines recent changes in the organlization of global businiess, notably coverage of the iSSues related to international development finance. the proliferation of multinational companies and associated prodUCtion By putting all development-related flows in a consistent framework, networks; the publication will allow government officials, economists, * Argues that sound nationlal policies, particularly to encourage competitioll, investors, financial consultants, academics, bankers, and the entire are needed for countries to reap the benefits of globalization; development community to better understanid, manage, and * Discusses ways in which the international community can help developing promote the key challenges of finanicinig development. countries establish competitive invcstment environmenits; and Considets the potential fursa new World Trade Organization agreemeit It also contains the World Bank's projections of the global outlook on investmenit and competition, and concludes that the probable in view of the current global geopolitical uncertaintles. dcvelopment impacts of any new accords are clearly secondary in importance to progress in reduicinIg trade barriers facing developinig counlirries. 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