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The Inspection Panel is to defer its recommendation to investigate into case of the World Bank’s “Institutional Reform Development Policy Grant” to Yemen, until after the implementation of Bank Management’s enhanced action plan, which seeks to address concerns raised by the Yemen Observatory for Human Rights in their Request to the Inspection Panel in April 2009.
The World Bank’s Middle East and North Africa mangement has submitted an enhanced action plan to be followed by staff in the region. The plan identifies steps to be taken throughout the implementation of the Bank’s “Institutional Reform Development Policy Grant” to Yemen – a program which came into the spotlight as a result of a complaint to the Bank’s Inspection Panel in April 2009. Most importantly, management has also laid out measures to address the issues that the Inspection Panel case highlighted: translation of program and project documents into Arabic, and consultation with civil society groups in the region. BIC’s Middle East and North Africa program will be preparing a summary of gains that have been achieved as a result of this case and will post it on BIC’s website shortly.
Read the Enhanced Action Plan
Yemen -Institutional Reform Development Policy Grant Inspection Panel Request Action Plan: Status and Way Forward (PDF, 456KB)
Read the World Bank and Inspection Panel Press Release
Inspection Panel website
Sep 17, 2009
Washington, D.C., September 17, 2009 – On Tuesday September 15, 2009, the Board of Executive Directors of the World Bank discussed the Eligibility Report for an Inspection Panel case concerning the “Institutional Reform Development Policy Grant” (IRDPG) to the Yemen Arab Republic. The Request for Inspection was made by two residents of Sana’a, Yemen, on their own behalf and on behalf of the Yemen Observatory for Human Rights, a nongovernmental organization that addresses issues of human rights, transparency and governance in Yemen. The Request concerned the availability of documents in Arabic, adequacy of consultations and potential impacts from the reform program.
The IRDPG’s aim is to facilitate private sector-led economic growth by supporting tax reforms designed to lower the corporate income tax rate in parallel with removing arbitrary exemptions that currently result in a low effective rate. It will also support implementation of a new procurement law, to strengthen transparency and effectiveness of public procurement. The IRDPG will, among other actions, strengthen oil sector transparency by supporting Yemen’s accession to the Extractive Industries Transparency Initiative (EITI). The Program is a $51 million two-tranche operation that was approved in November 2007, based on the Third National Development Program for Poverty Reduction (DPPR) that was prepared through a consultative process between the end of 2004 and mid-2006.
The Inspection Panel presented its Eligibility Report and recommendation to the Board on June 19, 2009. The Inspection Panel noted important steps, both proposed and taken by Bank Management, in its Response to the Request, to address the significant issue of translation of documents. The Inspection Panel also determined, however, that issues on consultation and participation remained, and recommended an investigation on these issues.
In advance of Tuesday’s Board discussion, which was requested by an Executive Director in July, Bank Management submitted a significantly enhanced action plan to address these remaining important issues and the broader issue of consultation in Yemen, as appropriate within the framework of applicable Bank policies. Based on this enhanced action plan, and the Requesters’ expressed interest in implementation of enhanced actions, the Inspection Panel proposed to defer its recommendation to investigate, as it has done in some similar past cases, in order to promote this opportunity to address concerns raised in the Request.
The Board agreed with the Inspection Panel’s proposal to defer its recommendation to investigate and welcomed Bank Management’s commitment to report on progress in the implementation of the enhanced action plan by June 2010, after which the Inspection Panel will recommend to the Board whether an investigation is warranted based on its independent review of the situation.
The Board members welcomed this constructive approach by the Inspection Panel and Bank Management and indicated the importance of implementing the actions proposed. The Board further noted the importance of the Inspection Panel process in enhancing the accountability of the institution, and in bringing important issues of consultation, participation and translation to the attention of the Board. A healthy part of effective oversight by the World Bank, as a shareholder-owned institution, includes the Board’s interest in and engagement with the work of the Inspection Panel, which is an independent accountability mechanism reporting directly to the Board.
Media Contacts
Inspection Panel
Luis Schunk
Email: lschunk@worldbank.org
Tel: +1 202 458- 5200
World Bank
Najat Yamouri
Email: nyamouri@worldbank.org
Tel: + 1 202 458-1340
For more information on the Inspection Panel, please visit www.inspectionpanel.org.
For more information about the Institutional Reform Development Policy Grant, please visit this page.