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By Andrea Shalal<\/p>\n
WASHINGTON, April 17 (Reuters) – The World Bank on Friday unveiled a new strategy aimed at helping small island states and other small countries better address unique challenges such as remoteness, exposure to shocks and \u200ca narrow economic base by focusing firmly on jobs.<\/p>\n
World Bank President Ajay Banga discussed the initiative at a closed-door \u200cgathering of ministers and central bank governors from 50 small countries held during the spring meetings of the International Monetary Fund and World Bank.<\/p>\n
He said the \u200bconcept was aimed at using differentiated tools to help small states attract more private investment, carry out policy and regulatory reforms to make it easier for businesses to operate and grow, and ultimately create more jobs.<\/p>\n
It will focus on areas such as health, affordable energy, resilient infrastructure and micro- and small businesses where Bank officials see the greatest opportunities to boost growth, strengthen businesses, and create more and \u200cbetter jobs.<\/p>\n
The World Bank Group last year \u2060approved a record $3.3 billion in new commitments and guarantees for small states, which face unique economic challenges and are disproportionately affected by shocks, as seen during the war in the Middle East.<\/p>\n
“For small businesses, \u2060a single hurricane, a sudden surge in imported fuel prices, or a downturn in tourism can undo months of investment and income in a matter of days,” the bank said in a blog released with the new strategy.<\/p>\n
Banga said the Bank will take a differentiated approach to \u200bshape \u200bthe regional projects it pursues in such countries, and partnerships would be \u200ba big component.<\/p>\n
“This is not a one-size-fits-all approach. \u200cSmall states are diverse, and our support will reflect that,” Banga told the finance officials. “We also know the economics are different.”<\/p>\n
He noted that working in small states costs up to four times more than in larger countries, so the Bank planned to streamline delivery of its services, use more flexible financing and scale solutions to make the most of each dollar.<\/p>\n
Some projects are already under way.<\/p>\n
In Tonga, for example, the bank will co-finance an urban resilience project with the Asian Development Bank under a mutual reliance framework \u200cagreement, a first of its kind between multilateral development banks.<\/p>\n
Banga said more \u200bsuch agreements were planned, including one with the Inter-American Development Bank to expand \u200bthe approach to the Caribbean. The World Bank was \u200balso expanding the tools available to countries, he said.<\/p>\n
Better diagnostics were also important, the bank said. Deeper \u200creports studying the constraints to private-sector\u2013led hiring were under \u200bway for Barbados, Guinea-Bissau, Lesotho, \u200bMauritius, Samoa, and Seychelles.<\/p>\n<\/p><\/div>\n
The World Bank could also leverage its power to help drive investments, the blog noted. For instance, the International Finance Corp, the bank’s investment arm, helped fund development of Botswana’s first utility-scale solar project, while the World \u200bBank worked on a parallel project on \u200cbattery storage to enable the integration of solar projects into the grid.<\/p>\n
“The result is not only a solar \u200bplant, but a replicable model for how unlocking private finance can open markets and create jobs,” the bank \u200bsaid in its blog.<\/p>\n
(Reporting by Andrea Shalal; Editing by Andrea Ricci)<\/p>\n<\/p><\/div>\n