World Bank Board Endorses New Poverty Strategy for Guinea

from the World Bank

Emphasis on Reforms, Transparency seen as Broadly Encouraging
Contact:
In Washington: Herbert Boh (202) 473 3548 hboh@worldbank.org In Conakry: Tabara Sakho Barry (224) 41-50-61 or 41-27-70 tbarry@worldbank.org

WASHINGTON, January 8, 2008 – The World Bank Board of Executive Directors today reviewed and endorsed the Government of Guinea’s second Poverty Reduction Strategy Paper, along with a Joint International Development Association –International Monetary Fund Advisory Note on the strategy.

In discussing Guinea’s new poverty strategy, the board particularly welcomed its emphasis on improving governance, fighting corruption and increased transparency, especially in the mining sector. It also recognized the urgent need to increase the population’s access to basic services, accelerate Guinea’s growth, diversify Guinea’s economy, and generate employment opportunities for the young and the poor.

Noting the tensions that emerged in Conakry this week over the coordinating role of Guinea’s Prime Minister and urging all parties to seek constructive solutions to the current crisis, Bank directors commended the government for steps taken over the past year to restore macroeconomic stability and undertake sweeping reforms. They underlined the importance implementing Guinea’s new program with the IMF and rapidly attain HIPC Completion Point to benefit from full debt relief, while underlining the need for a comprehensive debt management strategy aimed limiting the re-accumulation of debt.

“By putting the emphasis on urgent reforms to increase transparency and strengthen governance in response to the demands of Guinean civil society, this strategy aims at concrete results,” said Obiageli Ezekwesili, Vice President for the Africa Region. “Now that the government and the people of Guinea, with the backing of key donors, have a framework for attacking poverty and improving services, we look forward to working together to improve living standards. We hope for a peaceful and durable solution to the current tensions and encourage all parties to work together to allow the voice of ordinary Guineans to be heard.”

The board urged the government to push forward plans to strengthen public financial management, including central bank operations, and to follow through on proposals to strengthen management of the mining sector and improvement the climate for investment.

Directors also noted that Guinea is rich in natural resources and that sound management of resource revenues could serve to significantly improve basic services to the population.

For more information on the World Bank’s work in Guinea, please visit

www.worldbank.org/guinea