Argentina and World Bank Group Agree to Promote Inclusive and Sustainable Growth | WPN World People News

The World Bank Group (WBG) Board of Executive Directors, on April 25 endorsed the new Argentina Country Partnership Framework (CPF) until 2022. The partnership will focus on working with the country to reduce poverty through sustainable, private-sector led growth.

The new partnership for the 2019-2022 period estimates financing of around US$1 billion per year for the public sector and around US$500 million per year for the private sector. The partnership’s main areas include: (i) supporting the country in the creation of long-term private financing sources; (ii) contributing to improving public sector management and service provision; and (iii) promoting actions to reduce the country’s vulnerability to climate change, as well as mitigating its global environmental footprint.

“Addressing institutional constraints is at the heart of this new strategy at a time when Argentina is modernizing its economy and protecting the most vulnerable,” said Jesko Hentschel, World Bank Director for Argentina, Paraguay and Uruguay. “As long-term partners, we support complex projects that entail huge challenges, such as improving living conditions and urbanization of Barrio 31 or providing water and sanitation services to millions of Argentines, both in the country’s north as well as in the Matanza-Riachuelo river basin.”

The International Bank for Reconstruction and Development (IBRD), the International Financial Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA), will work together to advance the strategy and support the country’s development.

To promote long-term private financing sources, the WBG will support fiscal consolidation, strengthening of market-institutions (such as competition, trade and investment frameworks), promote productivity-led growth and an increase in exports. The development of a nascent local capital market and the mobilization of financing for key investments are also priorities. We will continue to support the implementation of “RenovAr” renewable energy program, which mobilized investments up to US$5.5 billion.

“We believe in the country’s potential and we will continue to support private sector development to create jobs and an economy that improves Argentines’ quality of life,” said David Tinel, Regional Manager for the International Financial Corporation (IFC). “We will invest to promote long-term development, new exports, improved productivity, job creation and greater environmental sustainability.”

At the same time, strengthening the social safety net will be a priority so that all sectors of society can benefit from the economic growth.

In terms of institutional challenges, the CPF will contribute to enhancing public sector administration efficiency. It will do so by seeking to strengthen inter-jurisdictional coordination with the goal of improving basic public service delivery such as water and sanitation. Moreover, it will prioritize the education sector, with the aim of improving learning outcomes in secondary education and skills building capacity to enter the labor market. It will also continue to support the implementation of a universal healthcare coverage system in the provinces.

In terms of climate change, the CPF supports the transition to a low carbon economy, increasing electricity generation from renewable sources and promoting the adoption of climate smart agricultural practices. At the urban level, it will support initiatives such as the use of electric buses to increase urban resiliency.

With an active IBRD portfolio of 26 investment projects totaling US$7 billion, an IFC portfolio of around US$3 billion and a MIGA portfolio of US$1.6 billion in political risk insurance, the World Bank Group is a strategic long term partner of Argentina.

Source: World Bank