The Board of Directors of the World Bank Group (WBG) has approved the 2019-2023 Country Partnership Framework for Ecuador to achieve the goals of poverty reduction and equality.
This document establishes a financing and technical assistance program to support the country’s efforts to achieve inclusive, sustainable development and growth.
The Strategy, prepared in coordination with the Government of Ecuador and based on consultations between the WBG and a variety of civil society and private sector groups, supports and is aligned with the Prosperity Plan of the Ecuadorian government.
It emphasizes the need to support macroeconomic stability, protect the most vulnerable sectors and reactivate sustainable growth, prioritizing three work areas: (i) inclusive growth; (ii) strengthening of human capital and protection of the vulnerable population; and (iii) improvement of institutional and environmental sustainability.
World Bank Director for Bolivia, Chile, Ecuador and Peru, Alberto Rodríguez said, “At a time when Ecuador is facing the challenge of protecting its human capital and social benefits during a process of stabilizing macroeconomic conditions, the World Bank reiterates its support to the country. This is an important step toward strengthening an inclusive, sustainable development agenda.”
The World Bank, the International Finance Corporation (IFC, a WBG institution that supports the private sector) and the Multilateral Investment Guarantee Agency (MIGA, a WBG agency that offers political risk insurance and credit enhancement guarantees), will work together to move the Strategy forward.
IFC Director for Latin America and the Caribbean, Gabriel Goldschmidt said, “The IFC will continue to support private-sector development to create jobs and an economy that improves the quality of life of Ecuadorians. We will work to ensure that Ecuador can improve its investment climate and that the private sector can become the driver of inclusive economic growth.”
The work areas and objectives established in the 2019-2023 Country Partnership Framework are interlinked and complementary. Developing human capital with the skills the labor market needs, along with policies based on evidence and recent information, will not only drive inclusive growth, but will also improve the country’s resilience in response to disasters and macroeconomic shocks.
Additionally, more efficient spending and the adoption of international standards for public sector transparency will contribute to the sustainability and protection of social services.
The simultaneous progress of the two first areas will help improve Ecuador’s access to financial markets and will lay the groundwork for strengthening institutions as the country advances down its path toward growth.