A Kiwi Abroad – a view back from the international community

1. A Kiwi Abroad –a view back from the international community Annette Dixon Director, Regional Operations Europe and Central Asia Region, World Bank

3. Overview • The World Bank Group • Global Issues of relevance to NZ Public Service • NZ’s contribution to the international community • Any lessons for New Zealand?

4. We are connected to the rest of the world by : Trade Investment Communications Migration Ideas But we are also connected by : Poverty Armed conflict Terrorism Environmental degradation Disease Crime, illegal narcotics and corruption Global Issues of Relevance to NZ Public Service

5. The World Bank Group • Our objective : poverty reduction through sustainable, pro-poor economic growth • raising living standards and human development outcomes • economic and financial stability • global public goods

6. Our clients : Very poor countries – eligible for highly concessional financial assistance (IDA) middle income countries – not able to access to capital markets, eligible for loans on market terms (IBRD) Our services : Financial assistance – loans, grants, debt relief, guarantees Analytical and technical assistance – macro and micro economic, public sector reform, private and financial sector, infrastructure and energy, rural, environment, human development Capacity building assistance The World Bank

8. The World Bank in E. Europe and Central Asia • 28 countries undergoing dramatic transformation since 1990 – from central planning to open markets, from totalitarianism to democracies. • Many countries experienced sharp declines in economic activity, trade and living conditions. Armed conflicts and epidemics of AIDS and TB in some. CIS particularly affected by break-up of common economic space.

9. Real GDP Growth in ECA: plunging, then recovering

10. The World Bank in E. Europe and Central Asia • All countries now in recovery, after major crises, but growing at different rates • EU Accession: 8 countries in Central Europe and Baltic states joining in May 2004 – unimaginable in 1990. Second generation reforms and social inclusion agenda. • Sth Eastern Europe: Post conflict stabilisation and reconstruction, institutional development, integration.

11. The World Bank in E. Europe and Central Asia • Ukraine, Russia, and Kazakhstan: Improving business environment, economic diversification, public sector reform, mitigating social and environmental risks. • Sth Caucuses and Central Asia: Collaborative international effort to accelerate growth and poverty reduction • Turkey: Reducing economic vulnerability, eliminating poverty, achieving high and stable growth.

12. In Many Countries, Men are Dying Earlier

13. ECA – Tuberculosis Incidence

14. HIV—spreading rapidly

18. Striving for greater global balance • Developing countries are promising to improve governance, investment climate, transparent legal and financial systems, and fighting corruption • In return developed countries are supporting through enhanced technical assistance, aid, debt relief, and greater trade access • Aid has never been used as effectively, but aid flows are dropping. Trade access will be a key determinant.

20. New Zealand’s contribution to a greater global balance • Direct contributions of aid and technical assistance • Policy ideas • Key roles played by individual NZ’ers

21. The view of NZ from afar • Oh, so small and far away from everywhere… • Principled, and independent (somewhat) • Supportive of multilateralism • Different from Australia • Innovative, reformer (risk-taker), entreprenurial • Wide application of the “New Zealand” model in developing countries (with softer face)

22. New Zealanders abroad • Nzers get around – in business, NGOs and IFIs • Small number in high profile positions, playing key roles • Many trained in NZ public sector • Valued for practical reform experience, can-do approach, and ability to get on with others.

23. New Zealand policy ideas applied abroad • Independence of central banks • Corporatisation/privatisation of state enterprises • Public budget management, asset and debt management • Public sector reform • Sectoral reforms in health, education

24. NZ ideas applied, but some limitations to transfer… • High transaction costs in poor,low capacity settings • Vulnerable to corruption • Attention to mitigation of social impacts • First generation reforms transferred in unmodified form

25. Areas for further engagement??? • Developing more socially inclusive societies, reducing ethnic disparities • Agricultural and trade reform • Knowledge economy strategies • Natural resource management

26. Any lessons for NZ Public Service? • Data, data, data… • Look beyond the OECD • If you can’t go to the world, bring the world to you • Set the bar high (higher) – skills, behaviours, diversity • No room for complacency • Keep the balance – policies, institutions, ownership • Planning for the unexpected

29. Staying world famous • NZ always connected – need to increasingly balance local with global • World is rapidly changing in less predictable and not nice ways – NZ Public Service will be tested • Quality of leaders will make the difference

30. Ma te rangitira hoki, Ka kiia te kainga, He Kainga. A place is known by its leaders