Saturday, 29 April 2023 17:16

World Bank Group approves strategy to generate more jobs, strengthen human capital and climate resilience in El Salvador

Written by Evelyn Alas

The World Bank Group (WBG) Board of Executive Directors today endorsed the Country Partnership Framework (CPF) 2023-2027 for El Salvador. This strategy seeks to promote inclusive and sustainable growth by strengthening the country's human capital and resilience to natural phenomena and climate change.

Likewise, the WBG will maintain an active dialogue with the country to strengthen macro-fiscal management and accelerate economic growth, key elements for sustained poverty reduction.

The new Country Partnership Framework will guide the WBG's work program in El Salvador over the next four years through investments that strengthen priority sectors for the country, such as education and health. It will also promote financing for small and medium-sized enterprises, youth employment and sustainable water resource management, as well as investments aimed at establishing quality infrastructure at the local and national levels.

The strategy seeks to generate greater opportunities for people living at risk of greater vulnerability, including young people, women and children in early childhood.

It will also work with the private sector on projects to stimulate the economy and promote greater social and economic development in El Salvador.

"Through this new Strategy, we reaffirm our commitment to El Salvador to continue our support for sustainable and inclusive growth that promotes socioeconomic opportunities for the entire Salvadoran population and, at the same time, responds to the challenges of climate change", said Carine Clert, World Bank Country manager for El Salvador and Costa Rica. "In parallel to our work with the Government, we will strengthen our collaboration with the private sector and civil society to contribute to the well-being of the most vulnerable families and groups, as well as to the economic empowerment of women".

"Private sector development is critical to El Salvador's inclusive and sustainable growth", said Sanaa Abouzaid, Regional Manager for Central America at the International Finance Corporation (IFC). "Over the next four years, IFC will continue to support El Salvador's private sector through strategic investments and advisory services to improve competitiveness, promote financial and social inclusion, and mitigate the effects of climate change".

The Banco Internacional de Reconstrucción y Fomento (IBRD), IFC and the Organismo Multilateral de Garantía de Inversiones (MIGA) will continue to work in a coordinated manner.

IFC contributes to private sector solutions to boost investment, create jobs and reduce inequality, while MIGA promotes foreign investment in strategic sectors of the economy, prioritizing projects that support green, resilient and inclusive development.

The current WBG portfolio in El Salvador is comprised of six projects for US$973.56 million from the IBRD, including the "El Salvador Water Sector Resilience Project" approved on this same date; seven IFC projects for US$583 million; and one MIGA guarantee project for US$2.4 million.


Translated by: A.M