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          ALGERIA: COUNTRY PARTNERSHIP STRATEGY FY11-14
                       CHAIR'S SUMMING UP

                 Meeting of Executive Directors ­ February 10, 2011



   The Executive Directors discussed the Bank Country Partnership Strategy (CPS) for the
People's Democratic Republic of Algeria.

    Directors commended the progress made by Algeria in sustaining growth and improving
social equity through an ambitious public investment program and prudent macroeconomic
management. They noted, however, that serious challenges remain, mainly to enhance the
business climate and competitiveness and to promote private investment, essential to
supporting economic diversification and generating quality employment, particularly for
youth.

    Directors expressed broad support for the CPS and welcomed its selective and flexible
approach. They noted the Bank's engagement in the country at a critical time for Algeria and
the region. Directors appreciated that key elements of the Bank's middle income country
strategy were taken into account to generate greater development impact. Several Directors
also commented that the CPS and its demand-driven nature and flexibility would be essential
in responding to the changing needs of the country.

    Directors welcomed the use of analytical and advisory services to provide better options
for the authorities, particularly, the use of Reimbursable Technical Assistance (RTA), as well
as the emphasis on institutional strengthening and implementation support. On the latter,
some Directors enquired about the specific implementation challenges of RTA programs and
the risks associated with implementing an exclusively knowledge-based strategy, dominated
by RTAs.

    Directors noted the good collaboration between the Bank and IFC. They emphasized the
Bank Group's role in creating an appropriate business climate and attracting investment, and
encouraged IFC to proactively explore investment opportunities in agribusiness,
infrastructure, the financial sector and SME development. Some Directors also highlighted
the importance to address regional integration more explicitly.

    Finally, Directors underscored the importance of the Bank continuing to strengthen its
presence in Algeria.