Poland country assistance review: partnership in a transition economy, Page 702

This review evaluates the overall relevance, efficacy, and efficiency of the World Bank's assistance to Poland. During 1986-89 the Bank carried out comprehensive reviews of the Polish economy but postponed lending until 1990. The Bank's cautious strategy was appropriate to the uncertainties of the time. By postponing lending until 1990, the Bank encouraged greater government commitment to reform, which in turn encouraged more lending. But with the country's changing political and social situation, implementation of Bank projects began to suffer. At the same time, the implementation problems were further compounded by management changes in the Bank's regional offices. Despite the mounting difficulties during 1992-93, Bank staff and the government were able to put together several new loans. By 1994 the Polish economy was moving toward a strong recovery, as the earlier reforms began to bear fruit. However, the government began to voice reservations about the lack of flexibility of the Bank's lending instrument. In March 1994, a London Club arrangement was reached, which the Bank supported with a $400 million loan. The 1994 country assistance strategy recognizes that having gained good access to international markets, Poland now depends less on the Bank. Greater selectivity and efficiency will characterize future operations. Closer cooperation with the IFC (International Finance Corporation), more emphasis on private sector operations, and high-quality nonlending services will determine the success of the new country assistance strategy. The review concludes with implications for the Bank's assistance programs in other transition countries. Annotation With external financial help and advice, Poland has made great strides toward sustainable growth. The country?s currency is stable, its international creditworthiness has been restored, and its private sector now accounts for two-thirds of GDP. This review evaluates the overall relevance, efficacy, and efficiency of World Bank assistance to Poland and finds that the Bank?s technical advice and intellectual support were pivotal in facilitating the work of Polish reformers. The book explores various stages in the evolution of the Bank?s assistance to Poland: systemic and institutional transformation and social improvement; private sector and infrastructure development; implementation and supervision; and, results and recommendations. Boxes, figures, and tables illustrate the Bank?s assistance strategy, including information on the distribution of Bank resources among Central Eastern and European countries, total Bank commitments to Poland by fiscal year, and a summary of the strengths and weaknesses of Bank assistance to Poland