InTouch 5 (1)

A N ew slIet t er of t he W orlId Ba~n, k| C o u n t r y O f f i c e M a n I a December 1999 Volume 5 Number I 23224 Philippines WVB Mindanao," said Vinav GOP, Donors Bhargava. "As we all knIow, Commit To Mimdantao accounts for l :S ign Proj eot tO Fzghqt nearly 25 percent of the cLountry's populationl, anld Project S _ * u * _] has nearly a third of the mral Performance Poverty in Mi|nduanao poor. Tlhis project comiple- see page 2 VeE nts thl 7 e ongoing World | Bank-assistedtprojects whose in1tenlded beneficiaries areppartly thelpeople of iiMindanao, " he stressed, The island of Mindanao has long been referred to as the 'Land of Promise.' Its vast natural resources could have provided the foundation for major undertakings in industry and agriculture. But development in Mindanao came in unpredictable stops and starts. Armed conflict, religious intolerance and general political instability contributed to marginal growth, and the potential of the island has been reduced to a record of under- achievement. Finance Secretary Edgardo Espiritu and Country Director for the World Bank in Recent advances in the peace process the Philippines,Vinay Bhargava, sign the loan agreement on behalf of the Philippine and the government's stern resolve in Government and the World Bank, respectively. Geoffrey Fox (left), Sector Director, mitigating poverty augur well for Mindanao. World Bank Rural Development & Natural Resources Unit and Agriculture President Estrada has also repeatedly Secretary Edgardo Angara (right) witness the signing. proclaimed that his administration's agenda for broad-based rural growth hinges on a L ast December 14, 1999, the Project attests to the importantpartnership revitalized agricultural sector. At the same Philippines and the World Bank between Governmenit and the World Banlk in time, the Local Government Code has signed a loan agreement of US$27.5 responding to theperennial callfor mean- devolved to the local government units million and a grant of US$1.25 million for ingful assistance to oar brothers in the (LGUs) most of the responsibilities related the Mindanao Rural Development Project. South. " Secretary Espiritu remarked at the to support for agricultural development and Finance Secretary Edgardo Espiritu and signing ceremony. "The loan comles at a the management of upland and coastal Vinay Bhargava, Country Director for the significant juncture ofPresident Estradas areas. Philippines, signed the loan agreement on adminiistration w1heln the implementation The new project recognizes the key behalf of the Philippine Government and of the Gov erninent'sprogramti forMindan- constraints inhibiting growth in agricul- the World Bank, respectively. The signing ao 's sustainable developmentigoes intoJull tural production in the island. Its specific took place two weeks after the project was steam, "he continued. features have been determined by real approved by the Bank's Executive Board. "This loan con firms the l'Vorld Bank's demands and local priorities. Based on "The Mindanao Rural Development sustainied support to the development of p.2 TAssessment of WB Program for Women, p3 Update on CAS, p4-5 In ThIs Issue Manila Social Forum, p3 WB NewslPictures. p6-7  p.1RP, RPW B Sign... of Agriculture in support of agricultural supervision under a Program Management 0 and fisheries dcvelopment. Board chaired by the Department Secretary. discussions with concerned LGUs and * Devolution and Local Autonomy. A senior of ficial at the DA's regional office the intended beneficiaries, the project Measures are aimed at strengthening in each ofthe participating regions will components include: the role and capacity of LGUs for rural oversee and facilitate day-to-day activities. development planning, management, and Direct project responsibility will lie * Rural Roads. Over 500 kms. of monitoring; linking technical skills and with the proper offices of the LGUs in the rural roads, primarily farm-to-market roads, enhancement related to the specific participating provinces. The initial program wfproiibe reord.wi Teipomnt r programs to be implemented; enabling phase includes five provinces namely, of provincial roads will ensure that all rural financial intermediaries North Cotabato, Sultan Kudarat, Maguin- projecistingall-s crt roads. linkupwitto effectively deliver credit; building up danao, Compostela Valley and Agusan en onitoring and evaluation del Sur. capacrity;and assisting Total project costs are estimated at caoal ci vernmnty $41 million.t he IBRD loan will berat the I \ _ i l *w l t _ ! m~~~ational governmevntw sie Bank's2 stanar intyearestre for L4po iBcsoR- agencies in adapting to theirthe for LIBOR- iComunlIrigtio.Ainofew proles tng based US dollar single-currency loans, LGUs uinder devolution. with a maturitv of 20 years, inclurding a * Coastal/Marine Biodi- tive-vear grace period. Implementations is versity Conservation. A expected to be spread over a period of three grant of $1.25 million from to four years. the Global Fnvironment The Philippine Government and the Facilitv (GEF) will initiate a World Bank are looking forward to a program of coastal and sustaidprogram of assistance exterding Devem nvment.from 12 to 15 years for 24 provinces of in Mindanao. I Mindanao. Depending on the local demNand * Communal irrigation. An estimated The design of the Project has been ansd the progress of the first loan to niect 4,350 has, of existing communal irrigation guided by a social assessment study carried the project obdectives, additional provinces systems will he rehabilitated, and new mayjoin under succeeding loans.The entire irrigation projects will be constructed in two program provinces of North Cotabato program will be worth S500 million, around taToeted ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~ut povertya aregmntase.ieda e orae and Sultan Kudarat. A strong participator $290 million of which has been committed Potable Water. Safe drinking water will approach has been incorporated into the by the World Bank. be brought to poor rural communities, project to involve the rural community, the The GEF is a financial Bechanism that m Community Funds for Agricultural local governments and local representa- provides grants and concessional loans for Development. This will be set up at the tives of national government agencies environmental projects and activities. it is municipal level to finance demand-driven, during its implementation, jointly implemented by the United Nations sub-projects which are consistent with the Overall project management falls under Dcvelopment Pd ogramme, the UN Environ- programs and priorities of the Department the Department of Agriculture and its ment Program and the World Bank. Philippines, Major project execution, weak implementation Donors CommitmTo capacity, procurement delays and inade- Improve itrProject quate financial management were cited as Improvernment agencies, led by Socio- e,fpectiv threasons for the weaknesses in implemen- Performance tation. These shortcomings contributed to slow fund disbursements and delayed development impact. The first ever joint review of the Offi- Ofiil from AD and WB pointed comia Development Asshoristancey(,out that there are huge resources being portfolio resulted in a landmark agree- maeaalbetrog h urn ment that would accelerate implemen- three donor agencies and expressed their projects to support the poverty tation of projects receiving assistance full cooperation and support. Secretary reduction agenda of the Estrada adminis- from the Asian Development Bank Medalla said, "Our holding this first joint meet- tration. They noted that financial assis- (ADB), the Japan Bank for International ing reflects our shared responsibility and com- tance amounting to about $1 billion from Cooperation (JBIC) and the World mitment to improving the Performance of ODA ADB and WB for 28 ongoing initiatives Bank. in terms of imp/ementation and development have been specifically designed to benefit Government agencies, led by Socio- effectiveness." the poor. World Bank Country Director economic Planning Secretary and Di- The review concluded that while many Vinay Bhargava said, "There is an urgent rector General of the National Eco- projects are performing satisfactorily, there need to expedite the implementation of these nomic Development Authority, Felipe are still those needing improvement in their Medalla, joined representatives of the implementation. Lack of readiness for UW p.6 2  Stakeholders Manila Social Forum Assess Banks Ma'lSoilFrn Program for i V W or two davs in December. some F20 women leaders from seven countries across Asia gathered in Manila to take a to "reduce gender disparities and enhance ' women's participation in the economic development of their countries." The conference, Evaluation of the Gender Impact of WB's Assistance in Consultation n he Manila Sy * SoForu,v four-dan t Social assessment and listening go with Stakeholders, was jointly organized by conference on social policy issues in together. They are needed not only in times the Bank and the National Commission on U East Asia, ended on a high note with of crisis but also in other times to identify the Role of Filipino Women (NCRFM). closing speaker Mats Karlsson, World Bank appropriate social programs, improve their In her welcome remarks, US Executive Vice President, External Relations, offering design and enhance their delivery. Director to the World Bank Jan Piercy said praise for the top-level gathering of experts. * The call for partnerships has been that the main objectives of the conference "The Manila Social Forum has offered echoed throughout the world and the Bank were to evaluate policy programs ofethe an outstandinigopportunityforallofus to has taken note of the manyconcerns and Bank, to see how they are doing and what have a viewfrom practitioners. It has also ideas which relate in spirit and practice to can be done better, and to get feedback from served to confront theomy andpractice, the aims encompassed by the Comprehen- the people. policy makers, actors and observers, " sive Development Framework and other The peoplerence sought responses to a SKarlsson said. "[It] was a r ich and stimullat- mechanisms. central question: Given the gender issues in ing week of exchanges, discussions, network- * The theme of governance was taken theparticipatingicountries, weatdactivities in ga7ndpartnerships in actiojn. " up in virtuallyevery discussion. At the should the Bankt befinancing? On the role of In his concluding remarks, Karlsson most basic level, poverty strategies and the Bank in gender and the appropriateness reviewed some of the recurrent themes, governance are intertwined issues. ofthe Bank's gender strategy, the country ideas and suggestions expressed during the Karlsson also said that the long-term representatives raised these issues: forum, which included: consequences of the economic, financial, * Because of stereotypes and gender biases, * It is too early to draw the curtain commercial, social and demographic women are continually marginalized in the down on the East Asia crisis, particularly transformations in Asia called for strategic areas of education, employment and access where social policy is concerned. Eftects thinking and forward-looking public to basic services, and agriculture. of the crisis are still being felt. There are policies and solutions. He added, "Thiis * Safety net polices and support mecha- operational lessons to be learned, early rmeetinig has reminided uts of the very long nisms are yet to be implemented for small- warning systems to be built, and agendai of structurt al and institutional scale enterprises owned by women. preparatory steps to be taken, challenges before us: this is ani on-going * There is a need to provide direct World * Safety nets need to be seen as more process and we mulst be honest in r ecogniz- Bank funding to women as end-clientele. At than crisis mechanisms-they are a central inghow ninich remains to be done. the close of the conference, a draft of the re- part of social polcy. And they need to be The Manila Social Forum, jointly vised Bank policy on gender was drawn up. looked at not as an administrative cost and organized by the Asian Development Bank a burden, but as an investment on future and the World Bank, served as a platform development. to analyze regional social policy and make 0 Early planning and monitoring are rommna tionso donors for spri just as needed as long-term thinking i'n rcmedtostoosfrspotn l E | social policyin th r egion. The focuJs must social reform programs in Central, beia morec on the preveon.Tive aspcts andst Southeast and Eastern Asia. It followed should address the structural challenges. the January 1999 Bangkok Social Meeting * Civil society and community organized by the World Bank. Some 250 participation are central to any successful policy makers, social policy experts, US Executive Director Jan Piercy, extreme le social policy and public policy, as well, academics, and representatives from civil listens to Congress Representative forWomen, They link to another recurring theme: society organizations attended the four-day Patricia Sarenas and otherAsian women leaders. decentralization, conference. 3  WORLD BAN S COUNTRY ASSISTANCE STRATEGY FOR THE PHILIPPINES I VERNACE and ANTE-CORRUWTION T he Bank's Country Assistance The Bank's Anti-Corruption Drive in the Report is that the Government Strategy for the Philippines for the The Bank's anti-corruption efforts in the should intensify its efforts to reduce period 1999-2004 spells out seven Philippines work on three levels: (1) opportunities and motivation for corrup- specific objectives to support the overall preventing fraud and corruption in Bank- tion and make corruption a high-risk, objective of restoring stronger growth with financed projects; (2) mainstreaming a low-reward activity. More specifically, more poverty reduction and greater equity. concern for corruption; and (3) responding drawing from the Bank's global experience One of these seven objectives' is to help to request for assistance from government and the Philippine-specific analysis so improve governance and transparency and agencies. far, the World Bank's preliminary Report combat corruption. Within this framework and in consulta- identifies nine elements as essential in tion with the government and civil society, the approach to fight corruption in the The Philippine Situation the Bank has identified the following areas Philippines: In the Philippines, as in all other for assistance during the 1999-2004 period: * Reducing opportunities for countries, the cancer of corruption im Improving governance in Bank-financed corruption through policy reforms and undermines development programs. It projects; deregulation especially in such areas as imposes a crippling tax on the poor and on _ Involving civil society as a partner in the tax policy and administration; regulation businesses. Corruption in the public and design, delivery and monitoring of Bank- of infrastructure services and public private sectors is generally perceived to assisted polices and programs; utilities; corporate governance, particular- be pervasive and deep-rooted. It has also o. Improving financial, corporate and ly in the financial services sector; environ- been alleged that influence peddling is public sector governance through a number mental and land use regulation; and on the rise. of regulatory and legislative reforms; import and trade arrangements. Nonetheless, the Philippines today - Reforming procurement and financial * Reforming campaign finance to meets many of the preconditions that offer management systems in the Departments reduce the impediments to good gover- promise for a successful campaign against of Health, Education, and Public Works nance inherent in the financial require- corruption. Over the last decade, several and Highways; ments to obtain and retain office and anti-corruption initiatives have been * Strengthening local governments and placate core constituencies, a matter of launched and an institutional infrastruc- supporting decentralization; and political reforms which is beyond the ture is in place. President Estrada champi- I Helping government design and expertise of the World Bank. oned the issue in his election campaign and implement its anti-corruption program. * Increasing public oversight by during his first year in office, his endorse- significantly increasing the information ment has become an asset and prerequisite Preliminary Recommendations to available to the general public. for success. Combat Corruption * Reforming budget processes by Other positive factors include In response to the Government's enhancing the integrity and effectiveness considerable knowledge about the prob- request, the World Bank has submitted to of government-wide as well as agency-level lem, examples of successful anti-corrup- President Joseph Estrada its preliminary financial management systems, improving tion programs in key agencies, and the Report on recommendations to help program performance monitoring and presence of certain institutions charged strengthen the fight against corruption. evaluation, and simplifying public with combating corruption in the public These recommendations are based on an procurement procedures, among others. sector. Likewise, a vibrant civil society and ongoing study being done by a team of * Improving meritocracy in the civil mass media have brought public attention experts from the World Bank and the Asian service by restructuring the civil service to the issue and they can be counted on as Development Bank. to reinforce merit and provide adequate dynamic allies in the crusade. The basic strategy being recommended financial compensation and accountability for performance. * Targeting selected departments and The other six objectives are: agencies based on the public's priority (I) address the effects of the crisis and promote economic recovery; (2) enhance human development concerns and identifying areas for a few and social services for the poor; (3) accelerate environmentally sustainable rural development; (4) promote sustainable urban development and combat urban poverty; (5) develop infrastructure, quick wins that would give momentum to particularly in the provinces; and (6) enable private sector expansion. further reforms. 4  * Enhancing sanctions for corruption * Supporting judicial reforms since i Appoint strong leadership and wvith the end-viewr of changing current global experience has shown lower levels management. perception of corruption in the Philippines of corruption in countries with predictable ii Set up a multi-sectoral advisory group. from a "low-risk, high-reward" activity judiciaries in the sense of adjudicating iii Develop a sequenced action to a "high-risk, low-reward" offense by cases consistently and efficiently. The program chosen from the nine point strengthening the government's capacity reforms should address such issues as anti-corruption strategy. to detect corruption and impose sanctions the perception and reality of judicial iv Initiate appropriate programs immedi- * Deploying partnerships with the corruption, case overload and delays, and ately in priority agencies. private sector particularly in the design of alternative dispute resolution mechanisms. v Upgrade capacity of anti-corruption anti-corruption strategies in vulnerable The Bank understands that an anti- institutions. departments, engaging in dialogues, corruption strategy is only as good as the vi Launch inter-governmental and encouraging higher standards of corporate effectiveness of its implementation. In inter-institutional efforts involving governance, and implementing effective this regard, it recommends six priority the judiciary, the legislative and the codes of conduct. action areas: private sector. LEVELS OFASSISTANCE ANDACTIVITIES To HELP GOP FIGHT CORRUPTION Visit http://www.worldbankorg/publications/anticorrupt for more information on the Bank's anti-corruption efforts. CAS Priority Areas 7 Supporting Activities in FY00 Ouly 1999-June 2000) Level 1: Preventing FraudiCorruption in Bank-Financed Projects Improve governance in Bank-financed Ongoing: Training and TA program for implementing agencies on procurement/ projects. financial management, including ethics modules in all such training; full enforcement of fiduciary responsibilities; full staffing of procurement/financial management team; various capacity-building grants for results monitoring, public expenditures planning and social/environmental assessments; and a Country Financial and Accounting Assessment (CFAA). Involve civil society as a partner in the Ongoing: NGOs are involved in at least 14 out of 32 projects in various capacities. design, delivery and monitoring of Bank- Planned: Make participation standard operating procedure for all new lending and assisted policies and programs. Economic Sector Work activities. Level 2: Mainstreaming a Concern for Corruption in the Bank's Operational Work Improve financial, corporate and public Ongoing: Reforms in the banking and financial sectors. sector governance through a number of Planned: Reforms in the pension and housing sectors. regulatory and legislative reforms. -------------_------------------------- Reform procurement and financial Ongoing: Grant for social sector management including procurement/financial management systems in the Departments management training for various agencies. of Health, Education and Public Works Planned: Social Expenditure Management Loan will address procurement/financial and Highways. management systems in Department of Education, Culture and Sports and Department of Health; National Road Improvement Project will cover the Department of Public Works and Highways. Strengthen local governments and Ongoing: Through various projects with Local Government Units, which incorpo- support decentralization. rate some capacity-building. Planned: CEM to cover decentralization issues. Level 3: Helping the Government with its Anti-Corruption Program Help the government design and Ongoing-. Finalization of Working Paper on Combatting Corruption. The paper is implement its anti-corruption program. being prepared at the government's request. For a summary of preliminary recommendations please refer to website address indicated above box. Facilitation of a dialogue between the government and interested donors thru the Consultative Group process. Planned: As requested by the Supreme Court, a judicial assessment will be completed to identify areas for reforms in the judiciary. Technical Assistance (TA) to the Inter-Agency Coordination Council to fight graft and corruption has been requested and is in process. 5  'Mighty' Joe Stiglitz in Manila 5*wI N Is Speaking of Wtashington, Christmas here is Dr. Joseph 'Joe' Stiglitz, World Bank M "Ttiffl em like watchng movies alone, and at the same Senior Vice-President and Chief Economist, N time, makingyou feelyou are in those outlined his views on the new global mois wihpeople walking arounid economy in his address during the 13th wearing trench coats, mufflers, scarves, general meeting of the Pacific Economic mittens, etc. Cooperation Council. "This is also the first time I've seen fresh Dr. Stiglitz said that the world has Christmas trees whereas back home it has entered a new stage of evolution towards a always been artificial Ch1ristmas trees. And it global economy. Managing the emerging is SUUUPPPEEERRR COLLLDDD-a economic order requires global governance Iwhite' Christmas here is 'white' in the true without the political structures of a Sandy and Len in front of the World Bank HQ in sense of the word. Lastly, I hope the new governing world body. These impressions Washington D.C. millenium would bring Peace to all followed from his observation that the nations-make people realize that there is recent global financial crisis underscored I wo former staff of WB Country Office such a word as respect-for each man (and the fact that "events in one country can have Manila, Alexandra Liberty (Sandy) Reposar woman) to respect each other's riglhts, enormous impact on economies halfway and Marilen (Len) Montemayor, moved to particularly the right to live." around theglobe." the World Bank Headquarters in Washing- Len, on the other hand, "learned a lot To make sense of the rising global ton D.C. this year. about computers in Manila which has economy, new imperatives will have to In the Manila Office, Sandy was Team helped me with my work here andgave me displace currently fashionable concepts Assistant at the Office of the Country insights on handling tasks and who to get Director while Len was with Portfolio assistance-from. In Januaty, our unit will be Management and Visiting Missions. merged with the International Finance Now, after several months in Washing- Corporation which will be challenging and ton, D.C. working respectively as Team willfind me very busy especially getting Assistant, East Asia Central Operations acquainted with everyone. Howcvev; right Services Unit (COSU) and Team Assistant, nolv, am really missing myfamily and Private Sector Unit, both Sandv and Len are friends andpresents during Christmas, but I celebrating Christmas in Washington. am spendingffun time with my new,friends Sandy says, "Working in the Manila at church where I am doing volunteer work Office gave me the opportunity to develop through the end of theyear to help send Mighty Joe on his recent visit. myselfas aperson and as a team assistant, holidaygreetings and announcements. My and to be versatile, to improvise, and to be hopefor the new millennium is to be more of based on the development models of self-sufficient especially in my newjob here. a blessing to anotherperson." modern capitalism. Dr. Stiglitz suggested that a crucial development during the transition would be a shift in the relation- "giz p.2 Philippines, Major lion by June 2000 for WB; more than ships between a developed country and a Donors Commit... double disbursements to $300 million developing economv. He envisioned that the by December 2000 for ADB; and in- n crease disbursements by 33% by March new system of global governance would call $1 billion worth of poverty assistance 2000 for JBIC. allthestakeholders-notjustthepower- projects." The government also announced that brokers-to the bargaining table. Officials from the three donor agen- it would convene a follow-up workshop In a separate development, Dr. Stiglitz cies expressed optimism that improve- early next year to discuss in greater will be leaving the World Bank at the end of ments in project implementation will be detail the issues raised during the ODA the year to return to research and training. realized in the coming months as long as review. It plans to review and streamline Since his appointment as Chief Economist all parties pursue vigorously the agreed its approval processes, strengthen capa- of the Bank in 1997, Joe has made major action plan. bilities for monitoring of disbursements contributions to the Bank's research and The proposed action plan will target and project performance, enhance pro- operational agenda. Among them were his the following: curement processes to facilitate project emphasis on the centrality of knowledge * Reduce the number of under- execution and seriously study the possi- and on in development andhi performing projects by more than half of ble transfer of the Municipal Develop- a . the current level. ment Fund to government financing in- thorough assessment of the impact of * Double disbursements to $300 mil- stitutions in the near term. globalization, urbanization and localization. 6  During WBNews the last quarter of 1999, senior executives from World Bank Headquarters came to Manila to , attend some of the more prominent conferences held this side of the Pacific. Among these events were the Manila Social Forum, co-spon- sored by the World Bank and 1 ADB, and 13th general meeting of the Pacific Economic Council. Here are select snapshots of their short stay in the country. Dr. Joseph Stiglitz,World Bank Senior Vice- President and Chief Economist, (middle) flashes a friendly smile for former Economic Planning Secretary Solita Monsod (2nd from left), and other economists and members of civil society. i : S ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~. 0 WBVP East Asia and Pacific Jean Severino (right) and Mats Karlsson,World BankVice President, External Affairs, WB Country DirectorVinay Bhargava (2nd from right) meets with women workers at a recycling project. He visit a Department of Health-Urban Health and delivered the closing address of the four-day Manila Social Nutrition Project (DOH-UHNP) assisted health Forum. center in Cagayan de Oro. * LEAVING THE BANK recovery, focusing especially on addressing leader and mainager. the social crisis, restructuring the micro- "Jean-Michel led the Bank's res- J ean-Michel Severino, Vice-President of economy, strengthening institutions and ponse to the EastAsiafi nancial crisis, the East Asia and Pacific Regional Office, minimizing corruption. He oversaw a and the restrncthring ofthe Elast Asia is leaving the World Bank in March 2000 dramatic increase in lending, from 37 and Pacific Region, including the to reunite with his family in France. projects worth $4.9 billion in FY97 to 55 decenitralization of manyfunctions and Jean-Michel, a French national, joined projects for $9.8 billion in FY99. services of ourfield offices. These were the Bank in April 1996 as Director, "His departure will be a great loss unprecedented cliallenges, which he Country Department II in the Europe and for me and his colleagues, "said World Bank met with a high level of commitment, Central Asia Regional Office. He was President James D. Wolfensohn in integrity, professionalism and courage," appointed Vice President in 1997. a letter to the staff. "'We value him as an Wolfensohn said. Throughout the crisis, Severino outstanding contributor to our mission Mr. Severino's successor will be guided East Asia back on the road to of alleviatingpoverty, and an excellent announced in due course. 7  crisis recede, growth in developing countries-excluding transition econo- mies-will average 5% a year in 2000- Industry, combines market-based incen- 2008, a much faster growth rate than in GreeningIndustry: tives and public information disclosure to industrial countries. New Roles for encourage entrepreneurs to improve their Nonetheless, it will be significantly Communities, environmental performance while pursuing lower than the boom rates achieved during Stock Markets and profits. For example, in some countries, the pre-crisis 1990s. The report points out Governments local community representatives join that the lower growth projection presumes By David Wheeler government regulators and factory manag- that capital flows will take time to recover ers at the negotiating table to decide on and that they will remain volatile even as In a growing number of developing acceptable pollution levels and set charges commodity prices are unlikely to stage a countries, local cormunities, stock markets, accordingly. In other developing economies, strong recovery from their recent historic governmcnts and the news media are public information enables consumers, lows. Furthermore, the crisis has uncov- tapping their considerable power to combat bankers and stockholders to evaluate a ered, and in some cases accentuated, industrial pollution, and their concerted company's environmental record before serious structural flaws that will take time effort is paying off in significantly cutting deciding whether to buy a product, lend to resolve. These weaknesses will leave down noxious air and water discharges money or trade its shares. developing countries exposed to renewed from private companies. The new World Bank report includes a bouts of volatility. A new World Bank report, Greening CD-ROM which provides a large set of All told, despite a faster than expected Industre: New Roles for Communities reference materials, databases and audio- global recovery, the lingering effects of the IndStry: NarkewtRs for Comnmunitis, svisual presentations. An Internet version financial crisis may continue to depress Stock Markets and Governments, saysI this new approach is good news for the of Greening Industry is featured on the output across developing countries and world's poorest people, and presents a website, "New Ideas in Pollution Regula- hamper vigorous efforts to reduce poverty new strategy for keeping local industrial tion" at http://www.worldbank.org/nipr/. worldwide. pollution within reasonable bounds, without hindering growth. , To orderWorld Bank Group Greening Industry describes how publications, contoct: environmental regulators in developing International Booksource Center Inc. countries pioneered new approaches after I 1127-A Antipolo Street the so-called "command and control" GlobalEconomic Barangay Venezuela, Makati City model of pollution control, imported from Prospects and Tel. (632) 896-6501 / 6505 / 6507 developed countries, failed to reduce foul the Developing Fax (632) 896-1741 emissions. Under this approach-still Countries 2000 _ _Or visit our 24-hour online website at emissions. Under this approach-still Conre 00www.worldbank.org/publications. widely used, errant companies which To borrow, contact: violate the maximum allowable pollution This yearly report on prospects for develop- The World Bank Country Office Manila levcls simply pay fines and are under no ing economies argues that recovery from the 23/F,The Taipan Place obligation to clean up their mess. financial crisis is "fragile and uneven", with Emerald Ave, Ortigas Center To address such limitations, an innova- some regions recovering faster than the Open M-F, 9am -I 2nn; 1:30 - 3:30pm. tive approach, as mapped out in Greening others. It projects that as the effects of the The World Bank Counitry Office Manila 23/F, The ''aipan Place Place Emerald Ave., Ortigas Center Stamp Pasig City Here InTouch is a quarterly newsletter of the World Bank Country Office Manila. All correspondence may be addressed to: The World Bank Country Office Manila 23/F, The Taipan Place Emerald Ave., Ortigas Center, Pasig City Tel. 637-5855 to 64 EDITORIAL STAFF: Vinay K. Bhargava, editorial adviser Leonora A. Gonzales, editor Charito C. Sanalila, production assistant