Announcement of World Bank Loan to Fight Poverty in Rural Algeria with Job Creation on April 29, 2003

World Bank Loan To Fight Poverty In Rural Algeria With Job Creation Media Contact: Washington Sereen Jurn 1 (202) 473-7199 e-nnil: sjum@worldbank.org WASHINGTON, April 29, 2003 - The World Bank today approved a US$95 million loan to the Government ofAlgeria to generate enployment in low-incom, rural nuntainous areas of northwest and north-central Algeria. The Second Rural Enploynent Project seeks to raise the standard of living for Algeria's rural poor and follows the first Rural Enployant Project in north-west Algeria, which succeeded in engaging the local colmnnity, increasing enployrnt and arnrrs' incone, as well as reducing soil erosion Poverty and unenploynint are disproportionately high in rural Algeria. A study on growth, enploymnt and poverty reduction based on 1995 data revealed that 70 percent of the poor in Algeria live in rural areas (19 percent of the rural population, equivalent to a total of 2.7 million people), and that there is a close relationship between poverty and unenploymnt. Rural connnities are also affected by underenployrnt due to the seasonal nature of agricultural activities and conditions have worsened as a result of the persistent drought in the country over the last decade. In response to these challenges, the Government of Algeria developed a National Agricultural and Rural Development Plan in 2000 to pronte food security, identify and exploit resources with potential growth imypact, and protect the environent. The Rural Enploynint Project falls in line with the Government's National Agricultural and Rural Developent Plan, incorporating both short- and long-termresponses to the critical unenploynnt situation in ruralcoinunities. The project addresses the immediate problem of unenployrnt by creating jobs using labor-intensive civil works for natural resource Imnagement with enphasis on controlling soil erosion The longer term perspective focuses on agricultural development, enhancing the availability of assets and natural resources that can be used directly or indirectly in productive activities, such as substituting perennial-tree crops in place of annual cereal production The project also strives to integrate womn into rural developrent by responding to their different needs and priorities, including young womn who are interested in vocational training and worn heads ofhousehold who want inconr-generating activities such as smll livestock production and cultivating firit trees. Another aspect of the project will capture and nmnage existing water resources to relieve the risks associated with rainfed production, expand simll scale irrigation where possible, and nake clean potable water available to the rural population. The project will be impleninted in a decentralized nnner, using conpetitive methods focusing on snall and medium enterprises and enphasizing participatory approaches to enhance conrunity involvenrnt, all of which have proven to be effective under the ongoing first Rural Enploymnt Project. Training will be provided to the Ministry ofAgriculture and Rural Development as well as the central and local project units to ensure effective inplenentation of the project. The Rural Enploynint Project is consistent with the World Bank's rural development strategy and the Middle East and North Africa region's strategy which tackles the social problens of poverty and unenploy nt, addresses gender issues, promotes diversification and encourages snll and nedium enterprise in the private sector. For more information on World Bank activities in Algeria, please visit: httpi/www.worldbank.org/dz For nre infomation on this project, please visit: http/www4.worldbank.orsprojects/Project.asp?pid=P076784