Connect with us

Newsdesk

New ADB Country Strategy to Expand Trade, Drive Economic Growth in Georgia

Newsroom

Published

on

The Asian Development Bank (ADB) has today endorsed a new Country Partnership Strategy (CPS) for Georgia.

The 5-year partnership strategy, from 2019–2023, supports the Government of Georgia’s overall development strategy to increase productivity and reduce poverty through closer economic integration with its neighbors and the rest of the world.

The new CPS will focus on expanding trade, creating jobs, and combating poverty through the development of economic and transport corridors in Georgia and for Central and West Asia. It will also strengthen the country’s private sector and support the government’s emphasis on market-driven growth by further developing an enabling business environment and skills among the labor force.

Located at the crossroads between Asia and Europe, Georgia is well-positioned to take advantage of its strategic location. The country has over 30 free trade agreements with its major trading partners, attracting high levels of foreign direct investment. In 2018, Georgia’s economy grew by 4.7%. Yet a high unemployment rate, especially among young people, and a persistent current account deficit caused by low productivity has prevented the country from achieving its full potential. Helping the government address these issues is a key focus of the new CPS.

“We are delighted to continue our strong partnership with the Government of Georgia to help develop the country and improve the lives of its people,” said ADB Country Director for Georgia Ms. Yesim Elhan-Kayalar. “The priority of our new country partnership strategy is to further develop the country’s openness to the global economy as a means to drive growth and reduce poverty. We will do that through our support for regional cooperation and integration, trade facilitation, the development of transport and economic corridors, improved infrastructure, more livable cities, a better trained workforce, and institutional reforms and business development to support the private sector.”

ADB’s sovereign lending to Georgia to support the new CPS is projected to reach over $2 billion over five years, supplemented by the mobilization of additional cofinancing from development partners. This includes support for three flagship projects of the government: the development of the East–West and the North–South transport and economic corridors, and the Anaklia Deep Sea Port and Special Economic Zone. These projects are critical for Georgia’s goal of becoming a regional hub through increased connectivity and trade, opening the landlocked markets of Armenia and Azerbaijan, and extending the Central Asia Regional Economic Cooperation corridors to the Black Sea and Europe.

In parallel with the development of transport corridors, the new CPS will support the government’s vision of connecting them to local centers of economic activity, major tourist destinations, and the rural population engaged in agricultural production. Priority will be placed on creating livable cities that offer prime business, logistics, and investment destinations that will drive economic growth and job creation.

“The ultimate objective of the new CPS is to help develop the Caucasus as a gateway to the world and complement other regional cooperation initiatives in neighboring countries. The CPS is fully aligned with the Government of Georgia’s development strategy—Freedom, Rapid Development, Prosperity: Government Platform 2016–2020—and ADB’s Strategy 2030, both of which call for closer regional cooperation and integration,” said ADB Director General for Central and West Asia Mr. Werner Liepach.

ADB has supported Georgia since 2007 and is one of the country’s largest multilateral development partners. Sovereign and nonsovereign loans to Georgia to date total about $2.8 billion.

Continue Reading
Comments

Environment

Kenyan students learn about environmental law

Newsroom

Published

on

photo: UN Environment

In our globalized world, environmental threats require effective responses that promote peace, justice, development and the fulfilment of environmental and human rights. This is the responsibility of everyone; and we all have the right to be involved. We are all the leadership that the planet needs.

That’s what a group of Kenyan students were told in October 2019 when they participated in a lecture at the UN Environment Programme (UNEP) on international environmental law.

UNEP promotes a shared sense of environmental governance by building the capacity of those who affect the rules, policies and institutions that shape how humans interact with the environment.

UNEP experts spoke to students on basic governance and enforcement of international environmental law. International environmental law can involve many countries, as it does with the Paris Agreement, or a few countries, such as a regional environmental treaty. Sources of international environmental law can cover varied goals, such as the Convention on Biological Diversity, or be specific to a certain issue, such as the Agreement on the Conservation of Albatrosses and Petrels. We need international environmental law because many environmental problems are transboundary, regional or global in scope, and solutions require international cooperation and the adoption of common standards.

The students and UNEP experts deliberated over the weaknesses and strengths of international environmental laws and discussed how students could get more involved in tackling the issues. Students described the lecture as very useful and said that they were challenged to think of new and different aspects of environmental law.

Topics discussed included the divergent responsibilities of various groups regarding environmental governance and biotechnology, the principle of common but differentiated responsibility, and plastic pollution and lessons from the plastic ban in Kenya.

To ensure that this learning continues outside the lecture theatre, the UNEP team shared learning resources with the students.

James Nyaro, a lecturer at the Kenyatta University, said on behalf of the institution: “You let us ask you questions… and responded to them comprehensively… and we cannot thank you enough.”

What should I know about international environmental law?

When states work together to create and implement international environmental law, great things can be achieved. The ozone layer is currently on track to heal completely in our lifetime and this will save two million people each year by 2030 from skin cancer. This success is due to international environmental law through the Montreal Protocol: an environmental treaty.

As everyone has the right to be involved in environmental management, we should all have a basic understanding of the laws that govern us. Countries are individually responsible for deciding and applying international environmental laws, yet the average citizen can be far removed from the processes involved in their development and implementation. As citizens, we should influence the progression and enforcement of international environmental law to ensure that it effectively tackles the issues we face. UNEP encourages everyone to learn what international environmental laws apply to their states through InforMEA. Knowledge is the first step towards creating environmental laws that work for us.

On 23 October 2019, postgraduate students from the School of Security, Diplomacy and Peace Studies at Kenyatta University were introduced to international environmental law by UNEP experts.

UN Environment

Continue Reading

Newsdesk

ADB Project to Improve Fiscal Management, Develop Capital Markets in Armenia

Newsroom

Published

on

The Asian Development Bank (ADB) has approved a $40 million-equivalent policy-based loan attached to reforms that help strengthen fiscal sustainability and develop the financial and capital markets in Armenia. These are crucial enablers of private sector development.

Armenia’s economic growth over the last few years has been hampered by low levels of investment, both foreign and domestic, given the high costs of local currency finance and related constraints in the financial system. Efficiency-promoting upgrades in public investment and fiscal management are also needed to ensure sustained improvements in fiscal outlook and sovereign risk pricing.

“Financial markets remain nascent in Armenia, which limits the development of the country’s private sector and the banking industry,” said ADB Senior Financial Sector Economist for Central and West Asia Mr. João Farinha Fernandes. “This also constrains public finance and fiscal management, while exposing the economy to financial stability risks. ADB’s assistance is intended to help ensure that Armenia develops a conducive fiscal and financial intermediation environment where private sector players, both big and small, can contribute to growth and development.”

ADB approved a $50 million policy-based loan in November 2018 as part of an ongoing programmatic engagement on financial reforms to strengthen public debt and fiscal risk management, and to develop financial markets in Armenia.

The Second Public Efficiency and Financial Markets Program continues these reforms by strengthening the effectiveness of the government’s fiscal risk management function; promoting the development of fiscally responsible public–private partnerships; and enhancing market transparency and predictability in public debt management. The program will also improve the infrastructure of the government securities market and money market infrastructure, enhancing the sustainability and resilience of Armenia’s finance sector.

Continue Reading

Newsdesk

Bangladesh Can Boost its Exports with Better Logistics

Newsroom

Published

on

To meet the needs of its growing economy and to boost export growth, Bangladesh needs to improve its transport and logistics systems, says a new World Bank report launched today. 

The report Moving Forward: Connectivity and Logistics to Sustain Bangladesh’s Success, finds that by making logistics more efficient, Bangladesh can significantly boost export growth, maintain its position as a leading ready-made-garments and textile producer, and create more jobs. The report notes that congestion on roads and in seaports, high logistics costs, inadequate infrastructure, distorted logistics service markets, and fragmented governance hamper manufacturing and freight, further eroding Bangladesh’s competitive edge and putting its robust growth path at risk. 

“Bangladesh’s congested transportation and often unsophisticated logistics systems impose high costs to the economy,” said Mercy Tembon, World Bank Country Director for Bangladesh and Bhutan. “By making its logistics more efficient, Bangladesh can significantly optimize its connectivity, business environment, and competitiveness, putting the country on the right path to become a dynamic upper-middle-income country.”

Efficient logistics, the report argues, has become one of the main drivers for global trade competitiveness and export growth and diversification. For Bangladesh, improving its logistics performance provides an opportunity to increase its world market share in garments and textiles, which account for 84 percent of its total exports, expand into new markets, and diversify its manufacturing and agriculture into high-value products. 

The report notes that improving Bangladesh’s logistics requires a system-wide approach based on greater coordination among all public institutions involved in logistics and with the private sector, increasing the effective capacity of core infrastructure, and removing distortions in logistics service markets to reduce costs and improve quality. At a regional level, harmonizing its logistics systems and aligning its customs with that of its neighbors could turn Bangladesh into an important node for regional freight flows and further boost its trade. 

“There’s no doubt that reforms and investments for better transport and logistics will yield Bangladesh substantial economic benefits and strengthen its competitive advantage,” said Matías Herrera Dappe, Senior Economist at the World Bank and author of the report. “But the solution to logistics is not just to invest more but to invest better, by focusing on the service gap, and creating the incentives for high quality and competitive logistics services.”

Continue Reading

Latest

Trending

Copyright © 2019 Modern Diplomacy