CONTENTS
EXECUTIVE SUMMARY I.
THE ECONOMIC AND SOCIAL CONTEXT ................................................................................... 1 A. Recent trends .................................................................................................................... 1 B. The context ....................................................................................................................... 3 1. The opportunities ..................................................................................................... 3 2. Constraints................................................................................................................ 5 C. The government’s program ............................................................................................. 8 D. Medium-term economic prospects.................................................................................. 9
II. THE MAIN DEVELOPMENT CHALLENGES ............................................................................... 11 A. Restoring the credibility of State institutions so that the State can lead the way towards economic development and support the consolidation of democratic institutions: the challenge of governance...................................................................... 11 B. Laying the foundations for sustainable economic growth based on the market economy: the challenge of competitiveness. ................................................................ 14 C. Reducing poverty and inequality: The challenge of promoting human development. .................................................................................................................. 20 III. LESSONS LEARNED FROM PREVIOUS STRATEGIES AND PORTFOLIO PERFORMANCE ............ 24 A. Review of the previous strategy and major achievements ........................................... 24 B. Status of the portfolio..................................................................................................... 28 C. Conclusions and lessons learned ................................................................................... 30 IV. THE BANK’S OBJECTIVES, ITS STRATEGY, AND THE AGENDA FOR DIALOGUE .................... 31 A. Objectives ....................................................................................................................... 31 B. Core areas of the strategy............................................................................................... 31 1. Strengthening governance ..................................................................................... 32 2. Strengthening the foundations for sustainable growth by deepening the market economy and achieving greater regional and global integration............. 35 3. Reducing poverty and improving the quality of life of low-income sectors of the population......................................................................................................... 40 C. Implementation of the strategy...................................................................................... 42 D. Participation and coordination with other donors......................................................... 44 E. Lending scenarios and the country’s debt position ...................................................... 46 F. Possible sector and country studies............................................................................... 48 G. Risks associated with the strategy’s implementation ................................................... 48 H. Monitoring of the strategy and indicators ..................................................................... 50 I. Agenda for dialogue with the country........................................................................... 50