Belarus

                                    Country Partnership Framework

                                               April 3, 2018

                                             Chair Summary*

      The Executive Directors discussed the World Bank Group’s FY2018 -2022 Country Partnership
Framework (CPF) (R2018-0035[IFC/R2018-0040, MIGA/R2018-0015]) for Belarus.

         Directors supported the CPF’s three-interlinked focus on creating opportunities for the private
sector to grow, strengthening the country’s human capital and improving the contribution of infrastructure
to climate change management, economic growth and human development. Directors underscored the
importance of accelerating reforms to sustain the country’s inclusive growth with an enhanced role for
market forces and strengthened social safety nets.

         Directors commended Belarus’ strong record of shared economic growth and poverty reduction in
the past decades but noted economic recovery is expected to be weak due to increasing macroeconomic and
fiscal vulnerabilities. Directors supported the prudent approach adopted by the CPF with flexibilities built
into the program to respond rapidly to changes in the speed of reform. They further welcomed the C PF’s
theme related to promoting greater use of data and access to information to increase the transparency and
improve the outcomes of decision making.

         While noting the gradual pace at which the Belarusian authorities are likely to implement policy
change, Directors urged the Bank to play a proactive role in supporting the country to address development
bottlenecks of growing debt stress, financial sector vulnerabilities, as well as to improve citizen engagement
and competitiveness of State Owned Enterprises. Directors expressed concerns over the externalities of the
energy sector strategy and the quotation of World Governance Indicators in the CPF. They also discussed
the issues related to Doing Business rankings in general, and those of Belarus in particular.

        Directors commended the close cooperation across the WBG in preparation of the CPF, noting the
work in strengthening the business environment for private sector growth. Directors particularly noted the
coordination between IBRD and IFC to stimulate private sector growth through joint efforts to mobilize
public-private partnerships and improve the investment climate.




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*This summary is not an approved record.