The World Bank Group’s strategy is aligned with the Dominican Republic’s National Development Strategy for 2030, which establishes a clear vision for an inclusive, prosperous and democratic country through institutional, productive, social and sustainable development.
The World Bank’s Country Partnership Strategy for 2010-2013 emphasized protecting the poor while enhancing competitiveness and strengthening public institutions for performance accountability. Its four strategic objectives were to:
- Strengthen social cohesion and improve access to and quality of social services,
- Promote competitiveness in a sustainable and resilient economic environment,
- Enhance quality of public expenditures and institutional development, and
- Build capacity and constituencies for reform.
A new Country Partnership Strategy is under preparation for 2015-18. Through the initial rounds of consultations, including a wide range of stakeholders, the World Bank Group expects to support the Authorities in strengthening the foundation for sustained and inclusive growth and employment, as well as in reducing vulnerabilities and promoting social inclusion.
Results would be pursued in five key areas:
- Enhancing accountability and the management of public resources;
- Enhancing the dynamism of the private sector and improving the investment climate;
- Providing access to efficient and reliable energy, ICT and other infrastructure services;
- Strengthening education, health and water and sanitation systems for a healthier and better educated population; and,
- Strengthening social protection and DRM systems to reduce vulnerability to economic shocks and natural disasters.
IFC will seek to support investments in the DR in line with its overall Caribbean strategy, which focuses on financial inclusion, competitiveness and regional integration, and climate change, with innovation and crisis resilience as cross-cutting priorities.
The World Bank’s current portfolio in the DR includes five projects, totaling US$207.4 million in net commitments. The Trust Fund portfolio comprises 12 grants for a total of $3.1 million. Activities are focused on supporting health reform, social protection improvement, municipal development, emergency recovery and disaster management, and water supply and sanitation in tourist areas.
The International Finance Corporation’s (IFC) committed portfolio as of February 2014 comprises US$298 million across 21 active projects. It is the second-largest IFC program in the Caribbean, with new commitments in FY13 reaching a record high of US$164 million. Flagship transactions include the issuance of the “Taino Bond”, a first US$10 million equivalent local currency bond issue, used to channel resources to mortgage loans to low-income households and loans to SMEs. The overall focus of the portfolio is on energy (renewables), financial inclusion and infrastructure.
This support to the private sector is complemented by a US$107.6 million guarantee by the Multilateral Investment Guarantee Agency (MIGA). The guarantee is for a toll road to the Northeast of the DR, covering a US$14 million equity investment and US$162 million bond issue for MIGA’s client, Autopistas del Nordeste.