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Add to Preferred SourcesThe World Bank approved a $25 million International Development Association (IDA) grant for the Government of the Central African Republic to support its efforts to reestablish basic fiscal management and transparency and achieve economic recovery in the country.
The Second State Consolidation Development Program (PACE2) is structured around two pillars: 1) reestablishing basic fiscal management and transparency, which will help boost fiscal revenue, improve wage bill management, curb the use of exceptional budgetary procedures, and increase budget control and transparency; 2) supporting economic recovery, which will support a pro-poor, post-transition reform agenda that revitalizes the drivers of economic growth in roads, agriculture, and telecommunications (ICTs) sectors. The reforms under these two pillars are closely related and can help improve the living conditions of the poor, who are among the bottom 40% of the welfare distribution.
“The restoration of political stability in the Central African Republic presents a real opportunity to build peace, strengthen stability and resilience, and lay the foundation for economic recovery and development,” said Robert Bou Jaoude, World Bank Country Manager for the Central African Republic. “This assistance from the World Bank is coming at a critical time and will support the current transition phase of the Government’s reform agenda, providing budgetary and technical assistance to implement economic reforms.”
“By creating more fiscal space, the program will expand initiatives to reduce poverty and improve service delivery (such as health and education), especially into rural areas where most of the poor live. Reforms targeting more effective management of fiscal exemptions are expected to help ensure that these resources, which account for roughly 2% of GDP, are contributing to poverty reduction and development,” said Michel Ragnvald Malberg, World Bank Task Team Leader.
The PACE series is aligned with the Government’s national recovery and peacebuilding plan (RCPCA) 2017-2021. It is complementary to recovery and development activities supported by other development partners since the international donor conference in Brussels in November 2016.
Original source: World Bank
Published on 12 April 2018