87940 Union of Comoros Country Partnership Strategy Chair Summary* May 6, 2014 Executive Directors discussed the joint IDA/IFC Country Partnership Strategy (CPS) (IDA/R2014-0116[IFC/R2014-0086]) for FY2014-2017 for the Union of Comoros. Directors noted that this is the first full CPS for Comoros and welcomed the stable country conditions that made it possible to prepare a medium-term strategy. They endorsed the main areas of engagement of the CPS, namely, enhancing public sector capacity and increasing shared growth and employment and their alignment with the Government’s Poverty Reduction and Growth Strategy. Directors recognized fragility as an important driver of slow growth and continued, widespread poverty. They agreed that tackling the underlying sources of fragility should be a focus of World Bank Group engagement. Directors took particular note of the continued high risk of debt distress of Comoros and underscored the importance of reforms to strengthen fiscal and external sustainability, complemented by concessional support from development partners. Among the priority areas of assistance, Directors stressed institutional development and expansion of statistical capacity to help the government design and monitor its reform program and efforts to reduce poverty. Directors strongly supported the CPS focus on private sector-led growth and job creation. They encouraged coordinated efforts by IDA, IFC, and MIGA to improve the business environment and facilitate investments in the power, ICT, fisheries, and agriculture sectors, and well as education and skills development. Directors also noted the potential of offshore oil development and the importance of economic governance. Directors encouraged approaches to address the development challenges that Comoros faces as a small island developing state. They noted the potential to enhance economic integration with COMESA states and regional efforts in ICT, trade, and transport, as well as peer learning and knowledge sharing with regional and South-South partners. Directors also welcomed strategies and instruments to mitigate natural disaster risk, an area of continued vulnerability for Comoros. Directors noted the selectivity reflected in the CPS given the limited size of the program of assistance, and recognized the need to leverage Bank assistance and knowledge through advisory and diagnostic work. They emphasized the importance of a strong dialogue with government and stakeholders in Comoros and flexibility to respond to emerging priorities during the CPS period. ____________________________ *This summary is not an approved record.