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            REPUBLIC OF NICARAGUA: COUNTRY PARTNERSHIP STRATEGY

                                   CHAIRMAN’S SUMMING UP ∗

                                  Meeting of the Executive Directors

                                              November 13, 2012

      Executive Directors discussed the joint IDA/IFC Country Partnership Strategy for the
Republic of Nicaragua (IDA/R2012-0263[IFC/R2012-0325]).

        Directors commended Nicaragua’s track record in implementing sound macroeconomic
policies and its impact on poverty reduction. They noted the Government’s enhanced focus on
the poor and integrated model of delivering services at the local level.

       Directors expressed broad support for the CPS and its two strategic themes of improving
social welfare and increasing incomes. They considered the inclusion of transversal themes,
such as gender, climate and disaster risk management, and transparency, as critical for helping
Nicaragua to address its core development challenges. Directors appreciated that the strategy
leverages the whole scope of World Bank instruments as well as efforts to coordinate with key
development partners, in particular the Inter American Development Bank and the IMF.

         Nonetheless, Directors emphasized that crucial development challenges remain, including
the need to raise productivity and diversification, particularly in agriculture, improve access to
good quality basic services, and tackle difficult Millennium Development Goals. They
recognized the country’s vulnerability to natural disasters and exogenous economic shocks and
encouraged the Government to explore regional approaches to address these risks and to step-up
efforts in adaptation, preparation and mitigation of risks.

       Directors encouraged continued WBG support to mobilize public and private financial
resources to address basic services, education, security, and rural-urban disparities. Directors
noted the possibilities for policy reform in some key sectors, and encouraged the Bank to explore
continue its coordinated approach with other development partners while considering various
financing instruments to support policy reform. Directors recognized the Bank’s continued
dialogue on governance reform, and encouraged efforts to expand fiscal transparency, improve
property rights and promote open monitoring and evaluation of development results.

        Directors welcomed IFC’s significant and growing role in Nicaragua and encouraged
further joint Bank/IFC/MIGA efforts going forward, especially in diversifying the economy
beyond the agri-business and energy sectors.




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    This summary is not an approved record.