Mozambique - Country Partnership Strategy : chairman's concluding remarks

39926 MOZAMBIQUE: COUNTRY PARTNERSHIP STRATEGY CHAIRMAN'S CONCLUDING REMARKS Meeting of Board of Executive Directors of IDA May 30,2007 The Executive Directors welcomed the discussion of the Joint IDAIIFCIMIGA Country Partnership Strategy (CPS) for the Republic of Mozambique. They noted that it was developed in close coordination with the Group of 19 Budget Support Donors (G19), is aligned with the Government's priority development sectors, and incorporated lessons learned. Directors commended the Government for its strong commitment to poverty reduction and development. They noted that Mozambique has recorded an average annual growth rate of 8% since 1996. However, several Directors noted with concern the urban-rural and regional disparities in poverty, particularly the poor's limited access to health and education. Directors stressed the need for greater focus on agriculture, SMEs, capacity building and improved service delivery to address these issues. They also highlighted the importance of better public financial management both at the national and sub-national levels, effective implementation of the anti- corruption plan, and improved transparency in the justice sector including the need for a faster follow-up on court cases. Directors welcomed the results focus of the CPS and supported overall the main areas of the strategy, which reflect the Bank's comparative advantage. They also broadly agreed with the proposed lending and non-lending program. One Director noted that the planned increased use of PRSCs should be based on strong fiduciary diagnostics. Some Directors expressed concern about the quality of the portfolio, and urged Management to continue to focus on capacity building and steps to improve monitoring of results. With regard to the MDGs, Directors emphasized the need for greater focus on achieving the MDGs. They particularly noted the lack of focus on gender issues in the CPS. The importance of continued progress in reform of the financial sector was highlighted. Directors expressed concern about the continued high incidence of HIVIAIDS, and suggested a strengthened regional approach in combating this disease as well as a new program targeted at youth. The need for a more active IFC involvement in the country was also highlighted. Finally, with respect to the harmonization agenda, several Directors urged the Bank to continue its leadership role, including exploring opportunities presented by the entry of new development partners.