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Executive Summary
erase the fiscal deficit at all levels of government in the medium term, steadily lowering the ratio of public debt to GDP. The government is endeavoring to shore up investors’ confidence in Argentina through an IMF-coordinated international financial support package. C.
The Bank’s strategy objectives
1.6
The Bank’s strategy for the coming years will address the challenges outlined above, in line with the government’s program and the Bank’s Eighth Replenishment mandates and those ensuing from the Forty-first Annual Meeting of its Board of Governors. The objectives of the strategy are to continue to support: (i) sustainable growth of the production sectors and productivity increases by funding activities to help maintain an enabling environment for investment and competitiveness and build capacity in the government to promote productive and infrastructure projects; (ii) poverty reduction and raising of living standards , by supporting projects that will create jobs and provide broader access, better coverage, and higher quality of basic education, health, sanitation, and environmental services; (iii) reform of the State and balanced fiscal accounts to entrench gains achieved thus far, further decentralize government operations and make the workings of government more transparent, and strengthen institutions; and (iv) furtherance of the regional integration process.
1.7
With the above strategy goals in mind the Bank has devised a lending program, worked out in discussions with the country authorities, whereby it will support investments and reforms in the social sectors, infrastructure development, regional development, and other areas to help revitalize the economy and create jobs . This Bank-supported program is compatible with the offerings of other multilateral agencies as part of the financial support package for Argentina and the arrangement with the IMF approved recently by that organization’s Board.
1.8
Along with loans, the proposed 2001-2003 operations program contains various other actions and facilities—technical cooperation, MIF and IIC funding—with private sector and civil society involvement. The aim is to achieve lasting improvements and yield the strongest possible impact in the sectors concerned.
D.
Strategy priorities for 2001-2003 1. Activities to raise productivity and enhance competitiveness through financial and technical assistance to small and medium-sized enterprises (SMEs) and the agriculture, agroindustrial, and financial sectors; public- and private-sector infrastructure finance; regulatory framework improvements; capital market development, including the pension fund and insurance industries; and new technology development and dissemination programs. 2. Initiatives to reduce poverty and raise living standards , including targeting and strengthening of social programs; equity-enhancing activities and those