- You have already headed the bank's representative offices in Moldova, Kyrgyzstan and Turkmenistan. How, in your opinion, will the work in Belarus differ? With what mood do you start working?
- The first impression about the country is: you have a very cold climate and very warm people. After the Moldovan sun, I now need time to adapt to the Belarusian climate. As for my own activities, there is a lot of work to be done, but I'm looking forward to it. In the near future, we (the World Bank Group) are going to present a document called "Complex Diagnostic Study of the Economy" is a kind of manifesto that describes what we believe Belarus should do to improve people's living standards. At the same time, we are also preparing a Partnership Framework Strategy between the World Bank Group and Belarus for the period up to 2022. Yes, we have a lot of work to do, but I still hope that I will have the opportunity to leave my office and see the country. In addition, for the time that I am here, I have already felt the great hospitality and kindness of all those people whom I met.
- Will the approach of the World Bank to the implementation of projects in the territory of our country change with your appearance?
- Something will be the same, something will change. We will remain a reliable investment partner of Belarus. A number of projects in such areas as district heating, water supply and sanitation, and higher and secondary education have already been planned. However, changes are also required from the point of view of economic management, because the implementation of reforms is becoming an increasingly urgent issue. This means that we will indeed make more efforts to provide even more effective support to Belarus in its development. In particular, it concerns consulting on such issues as management of state enterprises, energy and social security sectors. And, of course, the most important thing is consultations on what changes can be made so that private investors and employers play a more important role in the country.
- As you noted, the preparation of a new Framework Strategy for the Partnership of the World Bank Group for Belarus for 2018-2022 is underway. What are the main projects that can be included in the strategy? What will it fundamentally differ from the previous ones? When can we wait for its adoption?
- The Partnership Framework Strategy is planned to be adopted in March 2018. An ambitious loan program will be presented there. For example, a member of our Group, the International Finance Corporation plans to increase the amount of investments in the private sector of the Belarusian economy. As for the World Bank, as I have already said, investments are planned in such spheres as higher and secondary education, water supply and sewerage systems and centralized heating. Our main goal is to improve the standard of living of ordinary citizens. We really believe that Belarus has shown impressive results in the development of the economy and social sphere over the past 15 years. However, this situation can not remain unchanged. If the Belarusians want to continue moving along the road to prosperity, then they need to rely on increasing productivity, rather than subsidies and borrowing. Therefore, the best way to preserve the achievements gained in the past is to start changes that will affect the future. And we are ready to actively advise the government of Belarus to make the country a place attractive for private and public organizations, so that labor productivity and new jobs are created.
- You mentioned several times that in the future educational projects are planned. How exactly does the World Bank plan to invest in the Belarusian education system? And why do you want to do this?
- Last week I looked at the results of a study conducted by the World Bank in 2013. A number of Belarusian enterprises were interviewed then, and each of them, was a it small, medium or large one, reported that the lack of skills and knowledge in the labor market made it impossible to create new jobs. Therefore, at the request of the Belarusian government, we agreed to participate in the project, which is designed for higher education. This program is still under preparation, but the World Bank would like to help Belarus to make the higher school program in the country more suited to the needs of the labor market. Belarus has recently made a significant step forward - it has become part of the Bologna process, which is aimed at improving the sphere of higher education. The World Bank could help the country fulfill its commitments under the Bologna Process. This will make it possible to modernize the system of university education in such a way that it conforms to existing international standards. The implementation of this program will begin in 2019.
- The World Bank actively supports the development of the small and medium-sized business sector in Belarus. In particular, the bank recently allocated $ 60 million to the Belarusian Development Bank to support small and medium-sized businesses. In your opinion, why is this direction so important for the economy of our country? Does the bank plan to implement new SME support projects in the near future?
- Small and medium-sized enterprises are a kind of engine of a dynamic economy. And just in small and medium-sized businesses, innovations can develop, and labor productivity can also grow. In my opinion, if Belarus creates well-paid jobs for its citizens, first of all this will happen in the sphere of small and medium-sized enterprises. In terms of supporting SMEs in Belarus, we have four areas of work. First, using the financing of the World Bank, the Development Bank of Belarus will start offering a credit line to small and medium-sized enterprises in the near future (it's just about the allocated $ 60 million). Second: next year, with the financial support of the European Union, we will begin a program of advising small and medium-sized enterprises on business development. Third: the International Finance Corporation plans to directly invest in small and medium-sized enterprises, help them develop and modernize. And the fourth: we plan to advise the Government of Belarus on improving the regulatory environment governing the work of the private sector.
- Work on improving the regulatory environment in Belarus is already underway. Now in our country a package of documents is being adopted to liberalize the business environment. Are you familiar with these documents and how can you evaluate them?
- We saw the drafts of these documents and believe that they help the country move in the right direction. I believe that the positive moment here is obvious: by accepting this portfolio of documents, the state administration bodies declare a serious attitude towards the development of the private sector in the country. The next step is to implement the norms correctly.
- Belarus has recently significantly improved its position in the rating of Doing Business. How does the World Bank assess the progress of our country up in this rating? Will it be possible to increase the volume of investments in the economy of Belarus, bring new investors to the country?
- As for improving its position in the rating of Doing Business, Belarus should be proud of its outstanding achievements. Today, according to the rating, you are on an equal footing with the countries of the European Union. But this rating evaluates the existing rules, and more important is how these rules are implemented. Therefore, I would like to tell the Belarusians that the positions in Doing Business are absolutely good, but now let's think about how to improve the mechanism for their implementation so that investors feel comfortable here.
- In the investment portfolio of the World Bank in Belarus, now nine projects in different sectors totaling $ 991 million. What are your plans for implementing social projects in Belarus, in particular in health care?
- At present, the Ministry of Health of Belarus is launching a program that receives our financial support. The funds within the framework of this project will be invested, among other things, in the creation of simulation centers for educational institutions that train health professionals. This will allow doctors and nurses to develop the necessary skills on specially equipped mannequins. Similar centers are planned to be created throughout Belarus. In addition, the project will assist the Ministry of Health in creating a national e-health system, which in turn will help in diagnosing diseases, monitoring the condition of patients. There is another project that inspires me even more, although he himself is small and few have heard of him. We have a group of dedicated experts who advise the government of Belarus on the issues of tobacco control. Obviously, even if you have a state-of-the-art healthcare system: if the population has an unhealthy lifestyle (especially men), then no system of the world can make such people healthier.
- How much it is planned to invest in the project with the Ministry of Health?
We plan to invest $ 125 million. However, I don’t like to say how much a particular project costs, the fact that Belarus realizes this itself is more important than any financing.
- Will you continue to invest in the development of the transport infrastructure of Belarus? Should we wait for new projects?
- In the near future we do not plan to invest significant funds in the transport sector. However, we are pleased to see that the European Investment Bank and the European Bank for Reconstruction and Development have recently become more active in this part. It seems to me that today Belarus has many sources of financing for the development of its transport sector. But the need for infrastructure development is something that almost all countries in the world face. And in most cases, governments or international institutions, such as the World Bank, do not have the resources to fully meet these needs. Therefore, in the long term, the only solution is to attract private sector investments for the development of this industry, for the construction of roads and railways. And the role of the World Bank Group is to act as a pioneer in working in complex sectors to attract other investors to follow us. This is our vision.
Source: BelTA