Egypt&Tunisia-World Bank Focus

Independent Films, Travel, Politics

Ahead of G-8 meeting: World Bank Group President Robert B. Zoellick today (24 May) announced up to $6 billion in new Bank support over the next two years for Egypt and Tunisia linked to progress by the two post-revolutionary countries to modernize their economies so they provide more opportunity for their people.

SOUNDBITE (English) Robert Zoellick, President of the World Bank:
“Well I think in the near term, you’ve got a slippage of the economy, and yet you’ve got high expectations. So we’re trying to work with more fast dispersing support that goes directly to budgets that’s connected with some of the reforms that are important in a political transition and for the long term.”

Zoellick said the World Bank was working closely with the IMF and other multilateral development banks on an integrated approach to stabilizing and modernizing the economies of the region. These joint efforts will be discussed with the Group of Eight at its summit later this week in Deauville, France.

SOUNDBITE (English) Robert Zoellick, President of the World Bank:
“It’s a very important moment. These are revolutions and these are huge changes going on in the region. So part of our challenge is to try to lean forward and provide support in a time of uncertainty, But also to lay the foundation for more sustainable and longer-term growth.”

The announcements of new World Bank support come as the institution announced new forecasts that showed a marked slowdown in economic growth in the Middle East and North Africa.

SOUNDBITE (English) Robert Zoellick, President of the World Bank:
“Part of the frustration that drove people into the street was a lack of hope. You have about 40 million jobs that you’re going to need to create over the next ten years. So we’re trying to learn lessons from other developing countries about how to create short-term jobs, but at the same time, create the foundation for long-term sustainable jobs.”

The Bank’s economic update for the region forecasts economic growth in 2011 will be 3.6%, down from a previously estimated 5%. This is primarily due to a sharp drop in Tunisian and Egyptian economic activity but also because of weaker growth in developing oil exporters. The report also noted that higher commodity prices could accelerate inflation. In particular, higher food prices could disproportionally hurt the poor in the region.

In the run-up to the G8 meeting this week in France, the Bank released today a report that highlights four key building blocks for development in the region: Strengthening the Governance Framework; Economic and Social Inclusion; Job Creation and Accelerating Private Sector Growth.

Directors:

• Mo Sacirbey UNTV

Producers:

• Susan Sacirbey