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This guidance note was prepared by International Monetary Fund (IMF) and World Bank Group staff under a project undertaken with the support of grants from the Financial Sector Reform and Strengthening Initiative, (FIRST). The aim of the project was to deliver a report that provides emerging market and developing economies with guidance and a roadmap in developing their local currency bond markets (LCBMs). This note will also inform technical assistance missions in advising authorities on the formulation of policies to deepen LCBMs. The guidance note discusses commonly faced challenges and bottlenecks in the journey to efficient and deep LCBMs. In particular, the guidance note explores how to overcome difficulties in implementing some existing best practices. Experience points to the interdependent nature of the required development actions and the need for supportive actions outside the narrow field of LCBM agents. The challenges discussed and accompanying policy guidance draw from the IMF and World Bank’s extensive technical assistance (TA) provision in this area, cross-country experience in LCBM development, and results from a recent survey of country authorities. The guidance note intends to be a resource for a wide range of stakeholders interested in government bond market development. Country authorities and TA providers can use the diagnostic on the level of LCBM development to design a proper sequence of policy actions to further improve the functioning of the domestic government debt market. Country authorities and IMF and World Bank country teams can use the guidance note to identify key macroeconomic and financial issues linked to LCBM development and integrate it into their policy analysis and advice. The diagnostic findings regarding weaknesses in LCBMs also can be used to help identify financial vulnerabilities and their remedies, in the authorities’ ongoing financial sector surveillance and in the context of Financial Sector Assessment Programs and Financial Sector Stability Reviews.

After a steady improvement in the fiscal position over the past decade, the standoff over clearance revenues has severely constrained the PA budget, leading to a significant expansion in expenditure arrears. Going forward, however, uncertainty about a resolution for the clearance revenue standoff will weigh on the economy. Over the last two decades, the Palestinian economy has been driven by large inflows of transfers as other sources of growth have been long-hindered by the ongoing Israeli restrictions on movement and access. Under a baseline scenario which assumes a continuation of the Israeli restrictions, persistence of the internal divide between the West Bank and Gaza and a decline in aid levels, the Palestinian economy is expected to slip into a recession in 2020 and 2021, even if additional, one-off transfers from clearance revenues are made. As financial buffers are depleted, the reduced revenues will require sizable cuts in public spending, which in turn would translate in reduced consumption and investment. The decline in growth implies a sizable decline in real per capita income and a rise in poverty. The Palestinian financial sector continues to face substantial risks against the backdrop of the fiscal crisis. The negative impact of the deepening fiscal crisis on the quality of loan portfolios across the banking sector has started to materialize as both non-performing loans and classified loans have been on an upward trajectory. With the severe liquidity shortage facing the PA, it has resorted to domestic banks to finance its needs raising the sector’s exposure to the PA for the first time in a number of years. Banks are also rescheduling outstanding loans held by PA employees who are receiving a reduced salary, compounding the destabilizing effect on the sector. However, the fact that the PA is simultaneously building up an asset in the form of tax revenues not received from the GoI ameliorates the situation as the increased exposure may be seen as a temporary trend. Another cause of concern is a possible disruption in Correspondent Banking Relationships (CBRs) between Palestinian banks and their Israeli counterparts due to de-risking by Israeli banks. The immunity and indemnity package given by the GoI to banks with CBRs are set to expire in May 2020 and February 2021, respectively, when a longer term and more sustainable intervention is expected to be in place. While resolving the fiscal crisis is an immediate priority there remains a broader reform agenda to improve the economy and Palestinian living standards.

В статье рассмотрено современное состояние рынка органической сельскохозяйственной продукции. Изучены причины медленного развития данного сегмента агропродовольственного рынка, а также предложены возможные пути решения проблемы. Так же сформирована стратегия дальнейшего развития рынка органической сельскохозяйственной продукции., The article considers the current state of the market for organic agricultural products. The reasons for the slow development of this segment of the agri-food market have been studied. A strategy for the further development of the market for organic agricultural products has also been developed.

The financial crisis of 2008 has revealed important shortcomings in financial supervision. The European competent authorities and bodies had therefore decided to move to radical reform of the regulatory and the supervisory framework and therefore adopt the rules of the ‘single rulebook’. The creation of the European Banking Union was the response to the Eurozone crisis. The EBU’s two pillars, i.e. the Single Supervisory Mechanism (SSM) and the Single Resolution Mechanism complement each other and aim to monitor the implementation of the single rulebook by the banks and to be responsible for their resolution, if needed, accordingly. In this context, the Commission through its comprehensive package of reforms in November 2016, aimed to establish same level of protection for all depositors within the Banking Union. For this purpose, the creation of a Single European Deposit Insurance Scheme (EDIS) is deemed to be necessary. The purpose of this thesis is to present the so called ‘third pillar’ of the European Banking Union and the reasons the creation of the EDIS is of such importance highlighting its structure and the transition from the previous deposit insurance framework to the one to be implemented under the Commission’s proposal.

The China Banking Regulatory Commission (CBRC) has maintained its momentum in regulation and supervision in the face of exceptional growth in scale and increasing complexity of the banking system. Equally, the CBRC has risen to the demands of the international regulatory reform agenda, delivering timely revisions to its body of regulations and maturing its supervisory practices through investing in essential new skills, enhancing methodologies, and broadening its interactions with the industry. In this context, the clarity of supervisory requirements and expectations communicated to the industry is a strength of the CBRC. Recent organizational reforms, in 2015, building on other internal reforms, will serve the CBRC well in delivering its supervisory mandate. While pursuit of financial stability is recognized as fundamentally important, concerns must be acknowledged as to whether the CBRC would, in practice, always be able to act on its primary, stability, objective, especially if government policies, whether focused growth and expansion, or social protection, conflicted with prudential considerations. The China Banking Regulatory Commission (CBRC) has achieved a high degree of compliance with the Basel Core Principles for Effective Banking Supervision (BCPs). Notwithstanding the revision to the BCP methodology, which raised the standards expected of supervisory authorities, the CBRC has demonstrated progress in almost all areas. Nevertheless, further maturing is needed, and taken together the recommendations of this report seek to support the CBRC in developing deeper and more comprehensive diagnostic capabilities, which ought to facilitate early, effective and preventative actions as necessary. It is essential that the CBRC’s achievements in recent years are consolidated as new challenges and complexities in the system will continue to emerge. In particular, it is essential that the CBRC obtain the resources to expand its range and depth of skills before developments in the industry leave it unable to maintain meaningful oversight and authority, not least of the four Global Systemically Important Banks (GSIBs). Building on the supervisory vision expressed in prestige CBRC publications such as the Annual Report, a detailed forward strategy for supervision, covering three to five years, would serve as a vehicle for the CBRC to articulate its case for resources.

This paper presents evidence on implementation of the World Bank Group and Financial Sector Reform and Strengthening Initiative "Principles for Public Credit Guarantee Schemes for Small and Medium Enterprises". The evidence is based on a self-assessment of 60 schemes in 54 countries. Overall, the results show a fairly decent level of implementation of the Principles, especially in the areas of legal and regulatory framework, mandate and eligibility rules, and claim management process. The results also show several gaps where reform and actions may be warranted, namely identification and accountability of funding sources, corporate governance and risk management, prudential regulatory recognition of guarantees, program/product calibration, and reporting and disclosure.

Financial infrastructure is the underlying foundation of a country’s financial system. It comprises all institutions, the rules, and standards of all the systems which enable financial intermediation. The quality of a country’s financial infrastructure determines the efficiency of intermediation, the ability of lenders to evaluate risk and of borrowers to obtain credit, insurance, and other financial products at competitive terms. For instance, the efficient and smooth functioning of the payment, and securities settlement systems facilitates the discharge of financial obligations and the safe transfer of funds across distances and institutions and retail customers, supporting the stability of the financial system. This technical note contains the assessment of the national payment and settlement systems (NPS) infrastructure in Russia using the framework of international standards6 and the experience and previous work of the World Bank on payment systems development7 in several countries around the world. The assessment was undertaken in the context of the IMF and World Bank (WB) joint Financial Sector Assessment Program (FSAP) mission to Russia during March 15-30, 2016. The assessor was Gynedi Srinivas of the World Bank’s Payment Systems Development Group. The assessor will like to thank the counterparts in Russia for their excellent cooperation and hospitality during the mission. The technical note assesses the NPS infrastructure in Russia under four broad themes. These are: (i) Legal and regulatory framework; (ii) Payment system landscape; (iii) Systems for post-trade clearing and settlement - Central Securities Depository and settlement depository and Central counterparty; and (iv) Oversight. It does not provide a detailed assessment of individual payment and settlement systems in the form of a Report on Observance of Standards and Codes (ROSC).

The Palestinian Authority is committed to improving state-citizen relations through various mechanisms including the complaints resolution. The objective of this technical assistance, which has been undertaken at the request of the DGC, is to strengthen the Complaint Handling Mechanisms (CHMs) in five Palestinian ministries/government entities that are supported by World Bank-financed projects, as well as the DGC. This summary report synthesizes key findings that have emerged throughout the technical assistance and formulates Ministry-specific recommendations. It forms the basis of a possible phase II of the project, which would support the implementation of recommendations. The report presents the innovative methodology used to bring together the demand- and supply-side perspectives on CHMs in targeted ministries; the key findings from the survey and the ministry-by-ministry assessments; the key suggestions for improvement; and finally the next steps. The technical assistance has generated high client interest among the concerned Ministries, the DGC and development partners.The technical assistance has generated high client interest among the concerned Ministries, the DGC and development partners. This summary report synthesizes key findings that have emerged throughout the technical assistance and formulates Ministry-specific recommendations. It forms the basis of a possible phase II of the project which would support the implementation of recommendations. The technical assistance also aligns with the focus on strengthening the citizen-state compact specified in the WBG Assistance Strategy FY15-16 for the West Bank and Gaza. The report is structured as follows: Part two presents the context; Part three presents the methodology used to bring together the demand- and supply-side perspectives on CHMs in targeted ministries; Part four presents the key findings from the survey and the ministry-by-ministry assessments; Part five presents the key suggestions for improvement; and finally Part six presents the next steps.

This report was prepared as part of the World Bank engagement in the Philippines to support Islamic Finance and Financial Inclusion. It provides an overview on the context for the development of Islamic finance in the Philippines and is accompanied by two focused reports providing further detail and suggestions on enhancing financial inclusion in the Philippines through Islamic microfinance and assessment of the status of financial inclusion in Autonomous Region in Muslim Mindanao (ARMM)and the proposed Bangsamoro territory. The term Islamic finance is used to refer to financial activities conforming to Islamic Law (Shari‘ah). One of the main principles of the Islamic finance system is the prohibition of the payment and the receipt of ribā (interest) in a financial transaction. A pure debt security is replaced with an “asset-based” security, direct financing of a real asset, and different forms of partnerships of which equity financing is the most desirable.The following key principles guide Islamic Finance: i) Prohibition of interest on transactions (ribā); ii) Financing must be linked to assets (materiality); iii) Engagement in immoral or ethically problematic businesses not allowed (e.g., gambling or alcohol production); iv) Returns must be linked to risks. Table 1 provides a summary description of basic financial instruments.Over the past decade Islamic finance has emerged as an effective tool for financing development worldwide, including in non-Muslim majority countries. Discussion and interest in Islamic finance has also appeared on G20 discussions. Major financial markets are discovering solid evidence that Islamic finance has already been mainstreamed within the global financial system – and that it has the potential to help address the challenges of ending extreme poverty and boosting shared prosperity.In summary, Islamic finance is equity-based, asset-backed, ethical, sustainable, environmentally- and socially-responsible finance. It promotes risk sharing, connects the financial sector with the real economy, and emphasizes financial inclusion and social welfare.

Central America is undergoing an important transition, with urban populations increasingat accelerated speeds, bringing pressing challenges as well as opportunities to boost sustained,inclusive and resilient growth. Today, 59 percent of Central America's population lives in urban areas, but it is expected that within the next generation 7 out of 10 people will live in cities, equivalent to adding 700,000 new urban residents every year. At current rates of urbanization, the region’s urban population will double in size by 2050, welcoming over 25 million new urban dwellers, calling for better infrastructure, higher coverage and quality of urban services and greater employment opportunities. As larger numbers of people concentrate in urban areas, Central American governments at the national and local levels face both opportunities and challenges to ensure the prosperity of their country's present and future generations.

This Country Partnership Framework (CPF) covers the five-year period FY16-20. Anchored in the government’s medium-term development plan as outlined in a January 2015 Cabinet of Ministers Program of Action, it also reflects the analysis and recommendations of the World Bank Group’s (WBG) 2015 Systematic Country Diagnostic (SCD) for Uzbekistan and the lessons learned from the Completion Report of the previous CPS. The CPF’s objectives and program, which focus on developing the conditions for faster job creation, are consistent with the WBG’s twin goals of eliminating extreme poverty and boosting shared prosperity. The Uzbekistan Systemic Country Diagnostic (SCD) identified ten priority areas that would need to be addressed to eliminate poverty, boost shared prosperity, and enable Uzbekistan to reach upper middle-income status. The government’s strategic objectives are for Uzbekistan to achieve upper middleincome status by 2030, implying income growth averaging 6 percent annually, and in particular to create 500,000 jobs annually. Building country systems for statistical, fiduciary, safeguard, and statistical capacity underlie the foundation of this CPF. The CPF program will remain flexible as circumstances change and new opportunities may arise.

The Zambia Mining Investment and Governance Review (MInGov) collects and shares information on mining sector governance, its attractiveness to investors and how its activities affect national development. It reviews sector performance from the perspective of three main stakeholder groups– government, investors in the mining value chain and civil society – and identifies gaps between declared and actual government policy and practice. The review's key findings are: Performance across the value chain is strongest in topics most closely associated with mining and which are related to the content of laws and regulations, though implementation of these is wanting in some instances; Sector development is constrained by a number of bottlenecks; According to investors, a number of areas are constraining mining investment and returns; The three key stakeholder groups agree on a number of topics they believe are particularly important to strengthen sector governance, investment and development impact; Civil society believes there is a number of weaknesses sector governance, including the poor handling of environment and social impacts of mining; problems with human rights associated with the sector; ineffective development planning as it relates to mining; issues concerning land access, compensation and resettlement; and the absence of revenue sharing between national and local government.MInGov’s methodology focuses on the status of governance and investment conditions in the mining sector from the perspective of stakeholders, and as reported in primary and secondary sources. However, less-well covered areas include the quality of its infrastructure services, the security of property from theft, the underlying strength of institutions, and ways to enhance mining’s contribution to local and national development.This report presents data on mining investment and governance indicators for Zambia that are current as of October 2015.

In May 2015, the IFC Corporate Governance Group called together 40 experts in the field and members of the IFC Corporate Governance Private Sector Advisory Group. These participants explored key changes in international corporate governance standards and codes of best practice in the wake of the recent global financial crisis and how these changes have helped draw corporate attention to sustainability issues. The group found that many issues that became evident regarding banks in the financial crisis, and led to changes in the governance of banks, also have flowed through into broader corporate governance developments. This publication arises from the issues and information from these discussions. Specifically, part A discusses developments from global or regional groups involved in corporate governance. Part B addresses developments in corporate governance practice, and part C looks at developments in corporate governance codes and standards.

Land rights and the systems that administer them can vary significantly across the world and within countries (World Bank 2003). For a number of reasons, land rights may be unclear or insecure. Securing land rights plays an important role in driving economic growth and poverty reduction. In recent years there has been increasing awareness of the relevance of land tenure issues to food security, climate change, rapid urbanization, informality, and indigenous peoples’ rights. The World Bank Group has a long history of developing and implementing projects aimed at securing land rights through a variety of interventions. This note synthesizes cross-cutting findings from 14 Independent Evaluation Group assessments of land administration projects that the World Bank has supported from 1998 to 2014. The project-level assessments reviewed for this report contain a wealth of information about how the Bank Group approached different problems related to strengthening land administration systems in diverse environments. This information is relevant to both land administration specialists and experts in other fields whose work is impacted by land tenure issues.

An effective and efficient justice system is essential for sustained economic growth. In a well-functioning, independent, and efficient justice system, decisions are taken within a reasonable time and are predictably and effectively enforced, and individual rights, including property rights, are adequately protected. Among other objectives, the efficiency of the judicial system is important for creating a good business climate, attracting foreign direct investment, securing tax revenues, and supporting economic growth. Research has shown that weak contract enforcement, for example, raises the cost of borrowing and shortens loan maturities, with a resulting negative effect on investment and GDP. Weak court enforcement systems have also been linked to late payments, which can lead to liquidity issues for companies and increase insolvency. Since the publication of the World Bank’s World Development Report 2005, the importance of well-functioning courts to strengthening the investment climate and ultimately to reducing poverty and boosting shared prosperity has been brought to the forefront and become internationally recognized. Indicators of commercial court performance, and business community perceptions of and trust in the courts, are a part of the World Bank Group’s (WBG) country-level investment climate assessments and its influential Investment Climate Surveys and Doing Business reports. Court performance has also become an element of European Union (EU) and Organization for Economic Co-operation and Development (OECD) accession. Helping countries to improve commercial court operations and ensure improved accessibility and effective delivery of services are important components of the development assistance provided by the WBG. The Commercial Court and Enforcement Assessment Tool has been designed to assist assessment teams and client agencies in this effort.

The Extractive Industries Transparency Initiative (EITI) is an international standard to promote open and accountable management of natural resources. By encouraging governments, extractive companies, civil society and the public to engage in discourse around transparency of the extractive sector, it aims to facilitate the management of a country’s natural resource wealth to benefit all its citizens. The objective of this report is to present, in a structured form, data categories and their reporting formats, that can be used to standardize information generated under each EITI Requirement. The review conducted for this study included a sample of recent EITI Country Reports, as well as other initiatives and industry standards. ‘Good’ refers to reporting standards that meet the minimum data to be provided under each EITI Requirement. ‘Better’ typically refers to reporting standards that are enhancements of data covered under the good category. ‘Best’ refers to standard formats for reporting data that represent the highest international benchmarks and are considered to provide comprehensive information, beyond the minimum data requirements. The research team recommends a step by step approach to this, starting with a specific set of Requirements, across a number of countries. This would allow the EITI International Secretariat to develop a set of comparable statistics for various reporting entities, as well as start constructing guidelines for EITI implementers.

The Ethiopia Investment Climate Program, managed by the World Bank Group’s Trade and Competitiveness Global Practice aims at streamlining and simplifying high priority regulatory practices and processes burdensome to the private sector and address investment climate issues that are holding back investment and productivity growth in Ethiopia. This report presents a summary of the major findings about the business registration and licensing regime in Ethiopia and develops recommendations for streamlining and improving it. The report is based on an in-depth review of the country’s more than 1,300 licenses; a detailed analysis at a sector level is presented in Annex three. This report consists of two main parts: in Chapter two, we present an estimate of the costs which the registration and licensing regime in Ethiopia imposes on the business sector in the country. Chapter three then presents the key findings and recommendations based on the detailed analysis of Ethiopia’s licensing regime and implementation practice, the details of which are presented in the Inventory of Business Licenses. A brief concluding chapter summarizes the recommendations and provides an estimate of the positive effects which they could have both for businesses and Government.

The Montenegrin economy has yet to recover from the collapse of the lending boom in 2008. The financial crisis hit asset quality, weakening banks’ portfolios. The legacy of pre-crisis rapid increase in indebtedness is adding to banking sector vulnerabilities. The crisis triggered a prolonged period of balance sheet deleveraging, which has translated into a near uninterrupted credit contraction. Slow economic growth and gaps in the legal framework have hampered banks’ efforts to reduce the overhang of nonperforming loans (NPLs). The CBM-managed payment and settlement systems are generally efficient. Some adjustments are needed to minimize any residual liquidity risks, such as facilitating the automatic transfer of balances from the reserves account to the settlement account. The CBM oversight function should be strengthened through the formulation of an oversight policy framework along with improvements to interdepartmental communication and exchange of information. The growth of the financial sector has contributed to greater access to finance for individuals and SMEs, but a number of weaknesses in the regulatory and enabling environment need to be addressed.

Transformational engagements are a critical pillar of the World Bank Group’s strategy for achieving its twin goals of extreme poverty elimination and shared prosperity. This learning product uses evaluative evidence from the Independent Evaluation Group (IEG) to understand the mechanisms and conditions for transformational engagements and the implications for the World Bank Group if it seeks to rely on such engagements to more effectively pursue its goals.

The Telecommunications Sector Assessment Note in the Palestinian territories is a knowledge product prepared by the World Bank in response to a specific request from the Palestinian Ministry of Telecommunications and Information Technology (MTIT) to assess the performance of the telecommunications sector, identify specific issues and make recommendations for further development and reform.

Myanmar’s financial system is undergoing a rapid transformation. A history of economic isolation has left Myanmar with small and underdeveloped financial institutions and very low access to financial services. Since 2011, however, demands on the financial system have grown exponentially with increased trade and investment, growing household income, and expanding government operations. While recent reforms have stimulated financial sector growth, much more needs to be done to establish a competitive and vibrant financial sector that can meet the needs of Myanmar’s expanding economy, boost incomes, and reduce poverty particularly among those living in rural areas. Increasing access to financial services is critical to achieving shared prosperity in Myanmar.

Doing Business sheds light on how easy or difficult it is for a local entrepreneur to open and run a small to medium-size business when complying with relevant regulations. It measures and tracks changes in regulations affecting 11 areas in the life cycle of a business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency and labor market regulation. Doing Business 2016 presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business.This regional profile presents the Doing Business indicators for economies in Caribbean States. It also shows the regional average, the best performance globally for each indicator and data for the following comparator regions: Common Market for Eastern and Southern Africa (COMESA), East Asia Pacific Islands, Southern African Development Community (SADC), Latin America and OECD High Income.. The data in this report are current as of June 1, 2015 (except for the paying taxes indicators, which cover the period January–December 2014).

Doing Business sheds light on how easy or difficult it is for a local entrepreneur to open and run a small to medium-size business when complying with relevant regulations. It measures and tracks changes in regulations affecting 11 areas in the life cycle of a business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency and labor market regulation. Doing Business 2016 presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. This regional profile presents the Doing Business indicators for economies in Arab World. It also shows the regional average, the best performance globally for each indicator and data for the following comparator regions: Common Market for Eastern and Southern Africa (COMESA), East Asia and the Pacific (EAP), Europe and Central Asia (ECA), Latin America and OECD High Income.. The data in this report are current as of June 1, 2015 (except for the paying taxes indicators, which cover the period January–December 2014).

Doing Business sheds light on how easy or difficult it is for a local entrepreneur to open and run a small to medium-size business when complying with relevant regulations. It measures and tracks changes in regulations affecting 11 areas in the life cycle of a business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency and labor market regulation. Doing Business 2016 presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. This regional profile presents the Doing Business indicators for economies in Landlocked Economies. It also shows the regional average, the best performance globally for each indicator and data for the following comparator regions. The data in this report are current as of June 1, 2015 (except for the paying taxes indicators, which cover the period January–December 2014).

Doing Business sheds light on how easy or difficult it is for a local entrepreneur to open and run a small to medium-size business when complying with relevant regulations. It measures and tracks changes in regulations affecting 11 areas in the life cycle of a business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency and labor market regulation. Doing Business 2016 presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. This regional profile presents the Doing Business indicators for economies in Middle East and North Africa (MENA). It also shows the regional average, the best performance globally for each indicator and data for the following comparator regions: Latin America, East Asia and the Pacific (EAP), Europe and Central Asia (ECA), South Asia (SA) and OECD High Income.. The data in this report are current as of June 1, 2015 (except for the paying taxes indicators, which cover the period January–December 2014).

Ukraines vast needs in infrastructure coupled with a constrained fiscal space require concerted efforts in strengthening public investment management. Investments in infrastructure are important for fostering economic growth. Translating public investments into assets crucially depends on how efficiently all types of public investments are management. The structure to handle PPPs is currently inadequate to access the global PPP market. Since a PPP system needs to be built on the foundations of a workable PIM system, the prospects for Ukraine attracting international standard investments from the global PPP market may appear to be out of reach for the time being. Recent reforming legislation aimed at fixing some of the issues highlighted in the 2012 PIM Assessment is encouraging but much will depend on the effectiveness of the implementation and the capacity of the institutional actors to understand and absorb them. This Assessment must by its very nature capture the situation at the time of the Assessment rather than an expectation of future potential.

Doing Business sheds light on how easy or difficult it is for a local entrepreneur to open and run a small to medium-size business when complying with relevant regulations. It measures and tracks changes in regulations affecting 11 areas in the life cycle of a business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency and labor market regulation. Doing Business 2016 presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. This regional profile presents the Doing Business indicators for economies in Europe and Central Asia (ECA). It also shows the regional average, the best performance globally for each indicator and data for the following comparator regions: European Union (EU), Latin America, East Asia and the Pacific (EAP), Middle East and North Africa (MENA) and OECD High Income.. The data in this report are current as of June 1, 2015 (except for the paying taxes indicators, which cover the period January–December 2014).

Financial infrastructure is the underlying foundation of a country’s financial system. It comprises all institutions, the rules, and standards of all the systems which enable financial intermediation. The quality of a country’s financial infrastructure determines the efficiency of intermediation, the ability of lenders to evaluate risk and of borrowers to obtain credit, insurance, and other financial products at competitive terms. For instance, the efficient and smooth functioning of the payment, and securities settlement systems facilitates the discharge of financial obligations and the safe transfer of funds across distances and institutions; hence, it support the stability of the financial system. This technical note contains the assessment of the national payment and settlement systems (NPS) infrastructure in Montenegro. The assessment was undertaken in the context of the IMF and World Bank (WB) joint Financial Sector Assessment Program (FSAP) mission to Montenegro during September 1-15, 2015. The assessor was Gynedi Srinivas of the World Bank’s Payment Systems Development Group. The assessor will like to thank the counterparts in Montenegro for their excellent cooperation and hospitality during the mission.

Doing Business sheds light on how easy or difficult it is for a local entrepreneur to open and run a small to medium-size business when complying with relevant regulations. It measures and tracks changes in regulations affecting 11 areas in the life cycle of a business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency and labor market regulation. Doing Business 2016 presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. This regional profile presents the Doing Business indicators for economies in Latin America. It also shows the regional average, the best performance globally for each indicator and data for the following comparator regions: Caribbean States, East Asia and the Pacific (EAP), European Union (EU), South Asia (SA) and OECD High Income.. The data in this report are current as of June 1, 2015 (except for the paying taxes indicators, which cover the period January–December 2014).

This note is prepared as part of the FSAP. Its main objective is to describe the status and recent developments in corporate financial reporting framework in Montenegro and highlight key issues relevant to financial sector. The note represents a technical annex to the main FSAP Aide-Memoire and seeks to provide a high level overview of developments since the 2007 A&A ROSC2, as well as highlight the areas that are most relevant to the financial sector. The Annex 1 to this note offers details on status of implementation of 2007 A&A ROSC policy recommendations and was based on the team’s knowledge of corporate financial reporting reforms in Montenegro and limited research. Montenegro has undertaken notable efforts to improve the corporate financial reporting framework since the 2007 A&A ROSC, especially in improving the statutory framework and efforts to align it with the EU acquis communautaire. However, implementation and enforcement of financial reporting and auditing requirements has been hampered by major capacity and resource constraints. The major consequences are that, with exception of banks and insurance companies, there is limited quality financial information on corporate entities available in the market that is reliable for economic decision making or supervision of financial sector entities. The capacity and skills of the accounting and auditing profession in Montenegro needs further development while the institutions responsible for accounting and auditing regulation, in some cases, are at inception. acquis communautaire.

Doing Business sheds light on how easy or difficult it is for a local entrepreneur to open and run a small to medium-size business when complying with relevant regulations. It measures and tracks changes in regulations affecting 11 areas in the life cycle of a business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency and labor market regulation. Doing Business 2016 presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. This regional profile presents the Doing Business indicators for economies in Small Island States. It also shows the regional average, the best performance globally for each indicator and data for the following comparator regions: Caribbean States, Common Market for Eastern and Southern Africa (COMESA), East Asia and the Pacific (EAP), Latin America and Southern African Development Community (SADC).. The data in this report are current as of June 1, 2015 (except for the paying taxes indicators, which cover the period January–December 2014).

Doing Business sheds light on how easy or difficult it is for a local entrepreneur to open and run a small to medium-size business when complying with relevant regulations. It measures and tracks changes in regulations affecting 11 areas in the life cycle of a business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency and labor market regulation. Doing Business 2016 presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. This regional profile presents the Doing Business indicators for economies in Latin America and Caribbean (LAC). It also shows the regional average, the best performance globally for each indicator and data for the following comparator regions. The data in this report are current as of June 1, 2015 (except for the paying taxes indicators, which cover the period January–December 2014).

This report reflects significant changes in European Union (EU) corporate financial reporting since 2011. In June 2013, a new accounting directive was adopted, replacing the fourth and seventh directives on company law. A directive amending the 2006 audit directive and a new audit regulation addressing oversight of the most significant audits were adopted in April 2014. The new legislation, summarized in this guide, is a result of several years of drafting and discussions following the financial crisis of 2008 and it represent a landmark in the EU’s efforts to strengthen its corporate sector accounting and auditing. The accounting directive seeks to enhance the quality of financial reporting and expand it, especially with regard to public interest entities, while reducing the administrative burden for smaller companies. The new audit reporting requirements introduced by the regulation are expected to increase the usefulness of statutory audits of public interest entities, such as listed companies, credit institutions, and insurance undertakings, and reduce risks of excessive familiarity between statutory auditors and their clients, encourage professional skepticism, and limit conflicts of interest. The audit directive and the regulation will bring more consistency in audit oversight and quality assurance systems across Europe. Implementation will involve significant challenges and require increased resources to ensure systems function effectively.

There has been significant development of Mali’s banking sector in recent years, but it remains shallow, and access to banking services is limited. With the opening of a new bank in 2014, there are now 14 commercial banks operating in Mali. There has been a positive evolution of the banking sector in Mali from 2009-13. There have been a number of changes in recent years in the ownership structure of the banking sector, which is now dominated by foreign shareholders, primarily from Africa. The emergence of WAEMU banking groups is a recent phenomenon, spurred in part by the approval of a single banking license for the sub-region. Available financial soundness indicators (FSI) suggest that the banking sector is generally sound, though performance varies widely among banks, and asset quality is weak.

Vietnam’s economy has weathered the recent turbulence in the external environment fairly well, reflecting resilient domestic demand and robust performance of export-oriented manufacturing. Growth further accelerated to 6.5 percent (year-on-year) in the first three quarters of 2015 (after coming in at 6 percent last year). Low inflation and strengthening consumer confidence supported an uptick in private consumption while investment was lifted by robust foreign direct investment, rising government capital expenditures, and a recovery of credit growth. Exports of the foreign-invested manufacturing sector also accelerated, but this was offset by a slowdown of commodity exports and a surge in imports of capital and intermediate goods, reflecting stronger investment and the high import content of manufacturing exports.

Bolivia’s distinct characteristics and aspirations are a key for understanding its development trajectory. Bolivia is one of the countries with the highest share of indigenous population, representing a tapestry of different groups with different historical, cultural and economic features, with a significant influence in policy decision making. The country is landlocked and one of the most sparsely populated in the world. As a result, long distances to the nearest seaports and markets and a challenging topography pose important natural constraints to economic expansion, and hamper broad-based and inclusive growth. Bolivia is also wealthy in natural resources, not only in hydrocarbon and in mining but in forestry and arable land, with high potential for growth, which make it vulnerable to commodity price shocks. In addition, in the last decade, the country has experienced a profound economic and political paradigm shift, enshrined in the 2009 Constitution, which has been predominantly driven by a state-led development model geared at addressing the social aspirations of Bolivians. The Agenda Patriótica provides the overall policy vision to 2025 and includes 13 strategic pillars. The PDES contains a five-year rolling plan with policy actions and budgets to operationalize the Agenda Patriótica. The overarching development agenda of the Government is still, by and large, based on an economic model that emphasizes state-led public investment, but which is increasingly opening up to private investment in important areas.

The Kenya water supply and sanitation (WSS) sector has been on a long path of facilitating commercial lending to Water Service Providers (WSPs). A key component of this effort is the evolution of rating the credit risk of WSPs for local lenders. However, the trade-off in credit rating WSPs is to provide the best credit analysis to help lenders assess the creditworthiness of WSPs, yet have a system that is simple and affordable enough to replicate on an annual basis. To solve this trade-off, the Water Services Regulatory Board (WASREB) and the Water and Sanitation Program of the World Bank have created a Creditworthiness Index for the WSPs in Kenya. In lieu of performing a full shadow rating analysis, which is much more thorough yet also more time-consuming and costly, the Creditworthiness Index provides a simplified snapshot of the financial and operational performance of WSPs.

Affordable housing will be instrumental to helping Vietnam achieve its goals for increasing productivity and inclusive urban growth. Since Doi Moi, the country has experienced impressive economic growth, averaged at 7.4 percent per annum from 1990 to 2008, lowering to an average of 6 percent per annum from 2007 to 2013. Strong economic growth has supported a substantial reduction in poverty, from 58 percent in 1993 to 17 percent in 20121. Yet, the country has remained largely rural, with more than half of its population working in the agricultural sector, which only contributed 17 percent of GDP in 20142. In some countries, urbanization has been used as a tool to accelerate economic growth and poverty reduction. As Vietnam aims to maintain a high growth rate, supporting urbanization, where cities contribute a growing share of jobs and GDP, will be an important measure. This structural shift will drive population growth and new demand for housing in cities, for which quality and affordable housing options in well-serviced and connected settlements will be needed. Areas of particular importance in the Law is support toward self-built housing, the active participation of the private sector, addressing the shortage of affordable rental housing as well as high demand for housing from low income groups, especially workers in industrial zones of large cities. This report, which includes a comprehensive assessment and roadmap for affordable housing in Vietnam, recommends the following key messages moving forward: increase investment, Prepare Three Flagship Initiatives under an umbrella National Affordable Housing Program, Institutional Strengthening, Land Tax Reform, and Create an Enabling Environment for Affordable Housing. Moving forward, design of the market-oriented measures described above will require intensive and careful consultation and engagement with all housing sector actors, particularly the private sector. Private sector will need to play an active role in the early preparation to ensure their participation and commitment that carries through to implementation of policy measures on the financing and supply side.

More frequent incidences of violence in Afghanistan, as well as delays in the elections process and cabinet formation, continued to fuel uncertainty and affected investor confidence in 2014 and the first half of 2015. Economic growth slowed to 1.3 percent in 2014, down from 3.7 percent a year earlier. Unlike in previous years, agriculture did not contribute much to growth in 2014. Production levels were high for a third year in a row but did not supersede the strong output in 2013. Growth was mainly driven by services and a slight expansion of industries where an increase in construction activities outweighed lower production in manufacturing. Private investment activities showed strong signs of slowdown in 2014, evidenced by a drop of nearly 50 percent in new firm registrations since 2012. The National Unity Government has embarked on an ambitious reform agenda to revitalize the economy, tackle corruption, and improve investment climate. However, it will take time for these reforms to have an impact, and it is yet unclear how much they will mitigate the high risks stemming from the fragile security environment. Growing trends in security and pension and wage spending over the medium term require immediate attention. Afghanistan faces significant financing shortages for both civilian and security spending. Therefore, securing continued high levels of donor financing over the coming years is of critical importance for fiscal stability in the country. The fragile security environment and financing constraints, compounded by weak governance capacity, pose serious challenges to service delivery in Afghanistan. Any setback in reform implementation would further slowdown the pace of human capital accumulation in Afghanistan and reduce future prospects of growth and poverty reduction.

At the request of the government of Kenya and under its guidance, a team of national and international experts conducted an appraisal of different agricultural insurance options for Kenya.This appraisal, as set out in this document and the accompanying technical analysis, lays out the costs and benefits of developing large-scale agricultural insurance that involves both the public and private spheres.The analysis considers potential structures for large-scale agricultural insurance in Kenya, the fiscal cost to the government of Kenya, and the economic benefits for farmers and pastoralists. In order for it to partner with the private sector to prepare and implement a large scale agricultural insurance program, the government should consider taking the following next steps.The government of Kenya may build on there commendations by the Program Steering Committee to take the lead in formulating a national policy on agriculture insurance, in cooperation with county administrations and private insurance companies. The government of Kenya may develop a road map for establishing the institutions required for large-scale agricultural insurance programs, with the goal of covering at least a fifth of Kenya’s agricultural producers. As next steps for establishing livestock insurance, the government of Kenya may decide how to integrate the proposed insurance product with other existing protection mechanisms. As next steps for crop insurance, the government of Kenya may seek consultations with agricultural banks and work with private sector insurers to develop a data audit system acceptable to international reinsurers.

Somalis face a daunting development challenge to overcome the legacy of two decades of sustained conflict and fragility, but substantial progress is now being made. Since 1991 and the collapse of the Siad Barre regime, Somalia has experienced cycles of conflict and fragility that fragmented the country, undermined legitimate institutions, and created widespread vulnerability. The new government that emerged following the Transitional Federal Government and the Roadmap to End the Transition in 2012 inherited a dysfunctional economy facing high levels of poverty and inequality, a youth bulge, high unemployment, and large infrastructure gaps. Against a backdrop of political progress marked by the emergence of new Federal Member States (FMSs) within the new constitutional framework and continued insecurity, the Federal Government of Somalia (FGS) has embarked on a process of structural, legislative, and institutional reform. The economy is starting to respond: Somalis are returning from abroad to invest, shops are opening, and the property market is booming. This is the first economic update for Somalia since the 2005 World Bank country economic memorandum for Somalia. The long conflict made monitoring of economic and social data nearly impossible since the late 1980s. With the relative stability of the past few years, new data have become available. The update is divided into two parts. Part one presents information on the social, economic, and governance status of Somalia. Part two focuses on intergovernmental fiscal relations.

This economy profile for Doing Business 2016 presents the 11 Doing Business indicators for Jamaica. To allow for useful comparison, the profile also provides data for other selected economies (comparator economies) for each indicator. Doing Business 2016 is the 13th edition in a series of annual reports measuring the regulations that enhance business activity and those that constrain it. Economies are ranked on their ease of doing business; for 2015 Jamaica ranks 64. A high ease of doing business ranking means the regulatory environment is more conducive to the starting and operation of a local firm. Doing Business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 189 economies from Afghanistan to Zimbabwe and over time. Doing Business sheds light on how easy or difficult it is for a local entrepreneur to open and run a small to medium-size business when complying with relevant regulations. It measures and tracks changes in regulations affecting 11 areas in the life cycle of a business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency and labor market regulation. The data in this report are current as of June 1, 2015 (except for the paying taxes indicators, which cover the period from January to December 2014).

This assessment of the current state of the implementation of the Basel core principles (BCP) for effective banking supervision in Bulgaria has been completed as a stand-alone report on the observance of standards and codes undertaken by the international monetary fund (IMF) and the World Bank during March of 2015 at the request of the Bulgarian authorities. It reflects the regulatory and supervisory framework in place as of the date of the completion of the assessment. The Bulgarian National Bank (BNB) has an internal governance structure which, by vesting the majority of the powers of supervision in the Deputy Governor for banking supervision, exposes the supervisory function to risks. Under the BNB’s legal structure, supervision and enforcement is dissociated from the Governing Council, and the Governing Council has no right to compel transparency of decision making or to impose a framework to ensure consistency in the use of the enforcement regime. There are material concerns that the BNB is too resource constrained to deliver effective minimum levels of supervision. Despite a broad range of supervisory powers, there are some gaps in the legal framework that unduly restrict the BNB’s locus. The BNB has a good understanding of risk and many strong practices, and also making good use of international standards and guidelines, but there are some important system wide vulnerabilities. The assessment team reviewed the framework of laws, rules, and guidance and held extensive meetings with officials of the BNB, and additional meetings with the Finance Ministry, auditing firms, professional bodies, and banking sector participants. The authorities provided a comprehensive self-assessment of the CPs, as well as detailed responses to additional questionnaires, and facilitated access to supervisory documents and files on a confidential basis as well as staff and systems.

At the request of the government of Kenya and under its guidance, a team of national and international experts conducted an appraisal of different agricultural insurance options for Kenya.This appraisal, as set out in this document and the accompanying technical analysis, lays out the costs and benefits of developing large-scale agricultural insurance that involves both the public and private spheres.The analysis considers potential structures for large-scale agricultural insurance in Kenya, the fiscal cost to the government of Kenya, and the economic benefits for farmers and pastoralists.In order for it to partner with the private sector to prepare and implement a large scale agricultural insurance program, the government should consider taking the following next steps.The government of Kenya may build on there commendations by the Program Steering Committee to take the lead in formulating a national policy on agriculture insurance, in cooperation with county administrations and private insurance companies. The government of Kenya may develop a road map for establishing the institutions required for large-scale agricultural insurance programs, with the goal of covering at least a fifth of Kenya’s agricultural producers. As next steps for establishing livestock insurance, the government of Kenya may decide how to integrate the proposed insurance product with other existing protection mechanisms. As next steps for crop insurance, the government of Kenya may seek consultations with agricultural banks and work with private sector insurers to develop a data audit system acceptable to international reinsurers.