WASHINGTON, DC, March 15, 2016 – The World Bank Board of Executive Directors today gave its support to Ecuador’s Country Engagement Note, which establishes the framework for action and roadmap agreed, between the Government of Ecuador and the World Bank Group (WBG), to maintain and intensify the social progress achieved by Ecuador in recent years.
“To the Ecuadorian Government, taking care of the social sector and improving the standard of living of all those inhabiting the Ecuadorian territory has always been a priority, and because of this, it has promoted a series of basic service provision and infrastructure programs. The country has been working productively with multilateral credit organizations, the World Bank among them, to continue with the execution of social impact projects,” said Finance Minister Fausto Herrera.
The Country Engagement Note proposes two main pillars for cooperation: maintain what has been achieved so far in terms of basic service provision and strengthening of social protection networks, and the promotion of economic diversification. Additionally, it includes a cross-cutting theme for mitigating climate change risks and environmental threats.
These pillars will contribute to a reduction in poverty and inequality, enabling the attainment of shared prosperity and guaranteeing sustainable development. The Country Engagement Note, moreover, emphasizes the importance of maintaining a sustainable macroeconomic framework as the basic foundation for economic growth, the fight against poverty and the reduction of inequality.
“The priorities established in the Country Engagement Note respond to the common objectives of the World Bank and the Government of Ecuador of working to reduce poverty and inequality, under a stable macroeconomic framework,” said Alberto Rodriguez, World Bank Director for Bolivia, Chile, Ecuador, Peru and Venezuela. “With this Note, the World Bank expresses its willingness to continue working with the Government of Ecuador for the benefit of the most vulnerable sectors of society.”
The plan of action was agreed between the government and the World Bank Group, comprised of the World Bank (WB), the International Financial Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA).
The World Bank’s current portfolio in Ecuador has seven projects under implementation, for a total of US$850 million. These projects are aligned with the objectives proposed by the 2013-2017 National Good Living Plan, supporting key sectors such as water and sanitation, transport, education and risk management. Additionally, the World Bank cooperates with various state bodies with technical assistance.
The IFC, the World Bank Group institution dedicated mainly to investments in the private sector, currently maintains a US$300 million portfolio in Ecuador, including agribusiness and forestry; financial institutions; and health. In the next two years, the IFC will play a significant role in supporting production sectors.
“The IFC has been working closely with the private sector in Ecuador to promote job creation and drive sustainable economic growth in the country,” said Carlos Pinto, IFC Manager for the Andean Region. “We will continue to provide support with a focus on promoting the financial inclusion of small and medium sized enterprises (SMEs) and the development of the agricultural, agribusiness, manufacturing, service and export sectors,” he added.
Through the projects, activities and technical assistance included in the Country Engagement Note, the World Bank Group expects to help the Government move forward in the provision of services to the most vulnerable population, improve access to quality infrastructure, and identify opportunities to promote economic diversification.
The Country Engagement Note covers the period up to June 2017.
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