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THE ROLE OF INTERNATIONAL ORGANIZATIONS IN THE CZECH REPUBLIC. Group Members: Despina Mertzios Martina Sedmak Lenka Strakova Ekaterina Zarovsky. CONTENTS. Introduction: The Czech Republic The World Bank Group and the IMF EIB and EBRD NGO‘s.
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THE ROLE OF INTERNATIONAL ORGANIZATIONS IN THE CZECH REPUBLIC Group Members: Despina Mertzios Martina Sedmak Lenka Strakova Ekaterina Zarovsky
CONTENTS • Introduction: The Czech Republic • The World Bank Group and the IMF • EIB and EBRD • NGO‘s
1. GENERAL CHARACTERISTICS OF THE CZECH REPUBLIC • 1st January 1993 • area: 78,864 km2 • population: 10.3 million • density: 130 inhabitants/km2 • 3 historical territories
1. SETTLEMENT STRUCTURE • highly diversified and dispersed across the territory • sub – urbanisation • urban population: 70,9 % • non - urban population: 29,1 %
1. POPULATION (I) • decrease in population - low number of births Development of Population in the Czech Republic in 1991 – 2000
1. POPULATION (II) • life expectancy – growing • ageing of population • national structure - relatively homogenous
1. INFRASTRUCTURE • transport infrastructure: • highways, roads, railway network density vs. quality
1. MACRO-ECONOMIC DATA (I) 1. GDP growth(significant decrease at the beginning of 90’s; recovery of economic growth from 1993; economic slowdown in 1997; economic growth since 1999 onwards)
1. MACRO-ECONOMIC DATA (II) 2. Inflation(2 price shocks - 1991 and 1993)
1. MACRO-ECONOMIC DATA (III) 3. Unemployment(appeared at the beginning of transformation process; low between 1992-1996; growth since 1997)
Unemployment rate in % 1. MACRO-ECONOMIC DATA (IV) 4. Regional unemployment: October 2003
2. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (IBRD) • Czechoslovak Government's reform programin 1991 - SAL US$450 million (macroeconomic stabilization and structural reforms) • modernization of individual sectors (incl. energy and telecommunication sectors) • Global Environment Facility (GEF) grants • power plant has been built in Kyjov
2. IBRD (I) Source: The World Bank, Project Statistics in the EU Accession Countries: Lending Activities by Accessing Countries between 1989 and 2002
2. IBRD (II) Things to be done: • to reduce the fiscal deficit • to reduce unemployment as well as regional disparities and differences in unemployment levels across the country • tofinish the restructuring and privatisation of major enterprises • to complete the reform of the pension and social benefit systems and finalization of the resolution of the bad assets
2. INTERNATIONAL FINANCE CORPORATION (IFC) • member of IFC in 1993 • total project costs: US$1762 m (18 projects) • strategic priorities were: privatization and restructuring, providing long-term financing for first- and second-tier local firms in sectors, institution-building, infrastructure, environmental clean-up investments and SME’s • privatisation and modernization of MOKRA(1992) • construction material sector- CEMBRIT • invested US$75 mand mobilized US$150 m to support restructuring NOVA HUT(1997) • its role is diminishing
2. MIGA, IDA, ICSID • MIGA - issued a US$4.9 million guarantee to Raiffeisen-Leasing GmbH of Austria for € 5.4 million non- shareholder loan to Raiffeisen Leasing BOT s.r.o in the Czech Republic (2003) • IDA – the Czech Republic is a donor • ICSID - Case No. ARB/97/4 CSOB Bank, a.s.v. Slovak Republic
2. INTERNATIONAL MONETARY FUND (IMF) • membership on January 1, 1993 • a stand-by loan (US$471 million) • purpose: to address short-term problems in balance of payments • 1995 - entire IMF debt had been repaid ahead of schedule • monetary crisis in 1997 (CZK was not devaluated to the extent expected) • in 1999 the CNB occasionally intervened to prevent the appreciation of the CZK • cooperation between the IMF and the Czech Republic is ongoing
2. CRITICISM ON THE IMF • voting in the organization is based on the amount of member contributions to IMF funds • the conditions for receiving IMF assistance: unfair or harmful • the structural funds or conditionality required for assistance are set up to maintain a dependent relationship between the economically developed countries and others
2. CONCLUSION • pre-graduation arrangements with the World Bank • ongoing relations with the IMF • main roles: • IMF - to promote international financial stability and the macroeconomic stability of member countries • WB - to help countries reduce poverty, particularly by focusing on the institutional, structural, and social dimensions of development • each institution needs to focus on its respective core tasks but working together where their responsibilities overlap
3. EUROPEAN INVESTMENT BANK (EIB) • set up in 1958 • EIB is an autonomous institution within the EU • enlargement as one of the objectives • participant in the EU‘s development and cooperation policies in about 150 countries
3. EIB AND RESULTS FOR THE CZECH REPUBLIC • EIB projects: always in conjunction with others • responsible for grant aid - ISPA and SAPARD • implementation of different schemes
3. EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT (EBRD) • established in 1991 • helps building market economies and democracies in 27 countries • largest single investor the region • project financing for banks, industries and businesses • supports privatisation and restructuring state-owned firms
3. EBRD AND RESULTS FOR THE CZECH REPUBLIC • 80% of economic activity in private hands • GDP growth is good despite weak economic performance of export markets • in 2002 FDI of US$ 9 billion • still a number of reforms are needed to further enhance the competitiveness
4. NGO‘s • what is an NGO • important for the community • important for the companies
4. NGO‘s IN THE CZECH REPUBLIC • breakdown of communism • fields of action • types of institutions • sources of financing
4. FIELDS OF ACTION • human rights • buliding democratic system and installing democratic values, elections • making connections with Western Europe • lobbying for both government and foreign interests • education • media • environment • corporate social responsability in business