WASHINGTON, D.C., February 28, 2013 –The World Bank Board of Executive Directors today discussed and endorsed the first Interim Strategy Note (ISN) for the Republic of South Sudan. Developed jointly with the International Finance Corporation (IFC), the ISN represents the Bank Group’s support to the South Sudan Development Plan over the FY13-FY14 period.
Over this period, the Bank’s International Development Association plans to invest approximately US$130 million in support of the Government of South Sudan foundational development of effective and accountable public institutions that respond to citizens’ needs. It will seek to impact service delivery by promoting effective economic management and governance; and expanding productive employment opportunities.
“South Sudan is a resource rich country with tremendous development potential. As a new nation, South Sudan has the opportunity to benefit from decades of development experience and avoid the hard lessons learned by others. Through its financial assistance, analytical work and country dialogue the World Bank Group will work with other development partners to help the country leverage global knowledge and development experience as it sets out to build effective and accountable institutions, diversify its economy and provide economic opportunities and improved livelihoods to its citizens," Bella Bird, Country Director for South Sudan, Sudan and Somalia.
Informed by the Bank’s 2011 World Development Report on Conflict, Security and Development, the ISN focuses on the longer-term endeavor of building legitimate institutions that can mitigate the drivers of instability. It also draws lessons and recommendations from the “New Deal” initiative announced in November 2011 at the 4th High-Level Forum on Aid Effectiveness where the g7+ group of 19 fragile and conflict-affected countries, (including South Sudan), development partners, and international organizations endorsed an agreement on a new global direction for engagement with fragile states
The New Deal argues for a new development architecture which is better tailored to the situation of fragile contexts and a thorough analysis of the sources of conflict and the drivers of instability.
The program will have two clusters of activities:
The first cluster will support activities which build accountable state institutions that can deliver basic services to underserved populations, both by building central state capacity to manage the macro-economy and national fiduciary and statistical systems, and by developing local government capacity to deliver services.
The second cluster focuses on building public and private institutions that can generate and sustain improved livelihoods and create jobs for the population.
South Sudan became a member of the World Bank Group on April 18, 2012. This followed its independence on July 9, 2011, born out of half a century of conflict and under development characterized by virtually no infrastructure, bare subsistence level agriculture, dismal human development indicators, and weak formal institutions of government.
“South Sudan is a resource rich country and its recent oil revenue sharing agreement with Sudan provides new opportunities for development partners to work with the Government to utilize the resources for sustainable development outcomes,” said Laura Kullenburg, Country manager for South Sudan.
The ISN will build on the lessons of the Comprehensive Peace Agreement (CPA) period 2005-2011, particularly the experiences of the Bank-administered multi-donor trust fund in South Sudan (MDTF-SS).