First Country Partnership Strategy in Suriname in 30 Years

WASHINGSTON, Dec. 18, 2014, CNS The World Bank Group’s Board of Executive Directors endorsed today a new Country Partnership Strategy (CPS) for Suriname for 2015-2018. This is the first comprehensive strategy in 30 years.

The new strategy proposes a lending programme of about US$60 million to support Suriname’s efforts in leveraging and sustaining its economic growth through greater social inclusiveness and economic diversification.

“Economic growth in the last decade has been strong, but highly dependent on the mining sector. This Country Partnership Strategy and our collaboration with the World Bank Group and other renowned international financial institutions will support our efforts for more sustainable growth, with better opportunities for all,” said Suriname’s Governor of the Central Bank, Gillmore Hoefdraad.

Over the last decade, Suriname has emerged as one of the Caribbean’s best performers in terms of economic growth. However, 30 percent of exports and employment are linked to the extraction, processing and trading of gold, oil and bauxite. In addition, the country is highly vulnerable to climate change and the rise in sea levels.

“While Suriname has recorded an average growth of 4.4 percent between 2000 and 2012, poverty remains prevalent, especially in the interior areas, and development progress is highly vulnerable to climatic disasters,” said Sophie Sirtaine, World Bank Country Director for the Caribbean”. “This renewed partnership reflects a common effort to boost an inclusive private sector growth and build climate resilience,” she added.

Guided by the priorities of the government’s National Development Plan, the World Bank Group’s two main areas of support are:

Improving the business climate by reducing the time needed for an entrepreneur to clear customs, improving access to finance through simplified business regulation and procedures, as well as adopting modern standards for financial reporting transparency.

In the extractive industries sector, the WBG will focus on disseminating good practices in the areas of transparency, benefit sharing and environment and social impact. While in the agribusiness sector, the WBG will focus on improving environment standards and quality of production.

Reducing vulnerability to climate change related floods by adopting a comprehensive flood risk management plan focused on the northern coast of Paramaribo, which is highly exposed to floods and erosion. The Government has taken some important risk reduction measures and is looking to scale up its intervention to protect the banks of the Suriname’s river along the city of Paramaribo and improve its urban drainage system. In addition, the WBG will also assist Suriname in better managing the financial cost of natural disasters, for instance through the possibility of participating in the Caribbean Catastrophe Risk Insurance Facility (CCRIF).