86070
                                            Djibouti

                         Country Partnership Strategy FY2014-2017

                                       Chair Summary*

                                        March 13, 2014

       The Executive Directors discussed the joint IDA/IFC/MIGA Country Partnership
Strategy FY2014-2017 for the Republic of Djibouti. Directors commended Djibouti for the
steady progress made in maintaining strong economic growth rates and gains in the health and
education sectors. They noted that Djibouti continues to face serious risks and challenges,
including debt distress, high poverty rates, unemployment, and vulnerability to natural disasters.

        Directors welcomed the focus of the CPS, anchored in the Government of Djibouti’s
Vision 2035, a long-term development plan focused on economic integration, governance, and
human development. The government’s vision and the CPS reflect the understanding that
Djibouti’s current capital-intensive, public sector-dominated growth model is no longer
sustainable and that a new approach is needed to address current vulnerabilities and to accelerate
economic growth and job creation. Directors supported the two CPS pillars, reducing
vulnerabilities and strengthening the business environment, recognizing their alignment with the
World Bank Group (WBG) strategic goals of reducing poverty and boosting shared prosperity.

        Directors encouraged the WBG to work closely with development partners and play a
leadership role in expanding donor and other resources to leverage IDA’s assistance. They
encouraged continued strong WBG collaboration and greater IFC engagement, given the need to
deepen and sustain private sector development as part of the new economic model. Directors
supported diversification of the economy by focusing on entrepreneurship in areas such as
tourism, fisheries, and telecommunications. They underscored the critical importance of job
creation and the linkage to educational services and skills development. Directors suggested that
urban development, energy, and social safety nets receive more attention during the CPS period.

       Directors highlighted the importance of development approaches that benefit the entire
population equitably and reduce social disparities, including enhanced access to economic
opportunities and services by women and youth. They welcomed the planned integration of
beneficiary feedback mechanisms in project design and implementation.

        Directors appreciated the CPS emphasis on institutional strengthening and gender as
cross-cutting themes that could be supported through knowledge activities, including statistical
capacity development to strengthen the understanding of poverty and wealth distribution. They
also recognized the impediments to successful program implementation and capacity shortages,
encouraging continued engagement on portfolio performance.



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*This summary is not an approved record.