OFFICIAL USE ONLY R2012-0177 IFC/R2012-0285 August 22, 2012 For meeting of Board: Thursday, September 20, 2012 FROM: The Acting Corporate Secretary Suriname - Interim Strategy Note 1. Attached is the joint IBRD/IFC Interim Strategy Note for the Republic of Suriname, for the period FY13-14, which will be discussed at the meeting of the Executive Directors to be held on Thursday, September 20, 2012. 2. Questions on this document may be referred to: Bank - Ms. Clottes (ext. 31905); and IFC - Mr. Ifill (Trinidad and Tobago: 5263+2022). Distribution: Executive Directors and Alternates President Bank Group Senior Management Vice Presidents, Bank, IFC and MIGA Directors and Department Heads, Bank, IFC and MIGA Secretary, IMF This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank Group authorization. Document of The World Bank FOR OFFICIAL USE ONLY Report No. 71944-SR INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT AND INTERNATIONAL FINANCE CORPORATION INTERIM STRATEGY NOTE FOR THE REPUBLIC OF SURINAME FOR THE PERIOD FY13-14 August 2, 2012 Caribbean Country Management Unit Latin America and Caribbean Region The International Finance Corporation Latin America and the Caribbean Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. GOVERNMENT FISCAL YEAR January 1- December 31 CURRENCY EQUIVALENTS Surinamese Dollar (SRD), US$1.00 = SRD 3.35, 01/30/2012 ABBREVIATIONS AND ACRONYMS AAA Analytical and Advisory IT Information Technology ……………..Activities JSAN Joint Staff Advisory Note AFD………..French Agency for LAC Latin America and the Caribbean ……………..Development MDG Millennium Development Goals CARCIP …..Caribbean Regional MIC Middle Income Countries ……………..Communications MIGA Multilateral Investment Guarantee Agency ……………..Infrastructure Program MSME Micro, Small and Medium Enterprises CARICOM Caribbean Community MTEF Medium Term Expenditure Framework CKLN Caribbean Knowledge and NCD Non-Communicable Chronic Diseases ……………..Learning Network NLTA Non-Lending Technical Assistance CPS Country Partnership Strategy NPV Net Present Value DSA Debt Sustainability Analysis ODA Official Development Assistance EITI Extractive Industries OECD-DAC Organization for Economic Cooperation ……………..Transparency Initiative ………………and Development – Development ESW Economic and Sector Work ………………Assistance Committee EU European Union PAHO Pan American Health Organization FAO……….Food and Agriculture PEFA Public Expenditure and Financial ……………..Organization Accountability FBS Fee Based Services PER Public Expenditure Review FCPF Forest Carbon Partnership PFM Public Financial Management ……………..Facility PFMPR Public Financial Management & FDI Foreign Direct Investment ………………Procurement FIAS………Foreign Investment PPIAF…….....Public-Private Infrastructure Advisory ……………..Advisory Service ………………Facility FMAA…….Financial Management and PPP Public-Private Partnership ……………..Accountability Assessment PSIP Public Sector Investment Program FSAP ……Financial Sector Assessment PSTAC Public Sector Technical Assistance Credit ……..Program RAMP……… Reserves Advisory and Management GBR Gender Bureau Report ………………Program GDP………. Gross Domestic Product ROSC …… Report on the Observance of Standards GEF………..Global Environmental ……………... and Code …………… Facility SEMCAR Supporting Economic Management in the GNI………..Gross National Income Caribbean GNP……….Gross National Product SME Small and Medium Enterprises HIES………Household Income SOE State-Owned Enterprises …………….Expenditures Survey TA Technical Assistance ICA………..Investment Climate TF Trust Fund …………….Assessment TFSCB Trust Fund for Statistical Capacity ICT Information Communication ………………Building Technology UMI Upper Middle Income IDB Inter-American Development UNDP United Nations Development Programme …………Bank UNESCO United Nations Educational, Scientific IDP…….International Development and Cultural Organization …………Partner USAID United States Agency for International IFA Integrated Fiduciary Assessment Development IFC International Financial VAT Value Added Tax …………Corporation WHO World Health Organization IFMAS .Integrated Financial Management WBG World Bank Group …………and Accounting System WBI World Bank Institute IIRSA ..Initiative for the Integration of ………...Regional Infrastructure in South ………...America IMF ...International Monetary Fund IBRD IFC Regional Vice President: Hasan Tuluy Acting Vice President: Bernard Sheahan Country Director: Françoise Clottes Director: Paolo Martelli Country Representative and Country Manager: Jun Zhang Task Team Leader: Giorgio Valentini Country Representative and Task Team Leader: Kirk Ifill SURINAME INTERIM STRATEGY NOTE TABLE OF CONTENTS EXECUTIVE SUMMARY ............................................................................................................. i I. INTRODUCTION ...................................................................................................................1 II. COUNTRY CONTEXT...........................................................................................................1 A. ...... Political Context ................................................................................................................2 B. ...... Recent Economic Developments ......................................................................................2 C. ...... Governance, Transparency, and Corruption .....................................................................6 D. ...... Poverty, Human Development, and MDGs ...................................................................6 III. GOVERNMENT PROGRAM: Development Plan 2012-2016 ...............................................7 IV. THE WBG AND DEVELOPMENT PARTNERS’ ENGAGEMENT IN SURINAME .....................................................................................................................................9 A. ...... World Bank Group Relations with Suriname ...................................................................9 B. ...... Recent WBG Engagement ..............................................................................................10 C. ...... Development Partners .....................................................................................................10 V. WORLD BANK GROUP INTERIM STRATEGY FY2013-2014 .......................................11 A. ...... Objectives of the Strategy ...............................................................................................11 B. ...... Monitoring and Evaluation..............................................................................................13 VI. RISKS AND RISK MITIGATION .......................................................................................13 ANNEX A: REPORT ON THE OBSERVANCE OF STANDARDS AND CODES (ROSC)—ACCOUNTING AND AUDITING ..............................................................................14 ANNEX B1: SURINAME SELECTED ECONOMIC AND SOCIAL INDICATORS ...............16 ANNEX B2-1: SURINAME AT A GLANCE ..............................................................................17 ANNEX B2-2: SURINAME AT A GLANCE (CONT’D) ...........................................................18 ANNEX B2-3: SURINAME MILLENIUM DEVELOPMENT GOALS .....................................19 ANNEX C1: SURINAME IFC INVESTMENT OPERATIONS PROGRAM ............................20 ANNEX C2: SURINAME IFC INVESTMENT OPERATIONS PROGRAM ............................21 ACKNOWLEDGEMENTS The World Bank Group greatly appreciates the collaboration and contributions of the Government of Suriname and its Joint Desk during the preparation of this Interim Strategy Note (ISN). Special thanks are extended to the IMF Team led by Gamal Zaki El- Masry and the development partners in Suriname for their valuable contributions. This joint IBRD-IFC ISN was prepared by a team led by Giorgio Valentini (IBRD Country Representative) and Kirk Ifill (IFC Country Representative) under the guidance of Françoise Clottes (IBRD Country Director) and Paolo Martelli (IFC Country Director). The ISN Core Team included: Rohan Longmore, Michael Corlett, Mozammal Hoque, Darshana Yogendra Patel, Paul Daniel Dowling, Camielle Stacey-Ann Frazer, Christine Richaud, David Seth Warren, Auguste Tano Kouame, Juan Buchenau, from the IBRD; Jun Zhang, Pierre Nadji, and Eduardo Wallentin from the IFC; George Bentley from the TRE; and Daniel Villar from MIGA. Core team support was provided by Joy Duff-Alleyne from the IBRD and Veynu Siewrattan from the IFC. The following country team members and other colleagues also made important contributions to the preparation of this ISN: Afef Haddad, Enzo de Laurentiis, Christina Malmberg Calvo, Yingwei Wu, Joao da Veiga Malta, Trichur Balakrishnan, Claudia Ines Vasquez Suarez, Juan Navas-Sabater, Bernard Drum, James Pannett, Maria Beatriz Orlando, Lucia Fort, Miriam Muller, Thomas Aubrey Johnson, Amanda Olessia Adams, Maria Angelica Sotomayor, Shiyan Chao, Alma Kanani.and Galina Sotirova from IBRD; and David Bot Ba Njock, Ariana Progri, Pedro Andres Amo, Michelle Ottey, Catherine Gourdin, Kelsey Sutton Ranta, Guillermo Villanueva, Robert Heffernan, James Smouse, and Antonio Alves from the IFC. EXECUTIVE SUMMARY Suriname is the smallest country in South America. It is an upper middle income country with relatively strong economic performance compared with regional peers. Supported by prudent fiscal and monetary policies over the past decade, Suriname has experienced sustained economic growth, averaging 4.1 percent since 2006. Mining is the largest explored sector, with alumina, gold, and oil representing more than 90 percent of total exports and 30 percent of GDP. At 18.5 percent of GDP in 2010, the country’s total public debt to GDP ratio is the lowest in the Caribbean. The outlook for Suriname is favorable, with economic growth projected at 4.5 to 7 percent per annum over the medium term. The Development Plan 2012-2016, approved by Parliament in December 2011, aims to address Suriname’s key development challenges. The Plan is centered on five main areas: (i) good governance, by modernizing public institutions and improving public service delivery; (ii) social development for an equitable society, by improving safety nets and citizen security; (iii) economic diversification, competitiveness, and innovation; (iv) education, for competitive skills and building a knowledge society; and (v) protecting natural resources and managing the impact of climate change. This proposed Interim Strategy Note (ISN) is the first to be developed by the World Bank Group (WBG) after a 30 year hiatus. In response to the Suriname Government’s interest in receiving support from the WBG to enhance the country’s development agenda, this document lays out a 24-month program (FY13-14) that is demand-driven and aims to increase the extent of the WBG’s involvement as a development partner in Suriname, and to build the necessary knowledge base that could underpin a full Country Partnership Strategy in the future. With aid from the Netherlands, Suriname’s principal donor since independence in 1975, expired in 2010, the country is seeking to expand relations with other development partners for financial and technical assistance. With the Inter-American Development Bank (IDB) and bilateral donors (mainly China and India) poised to fill financial gaps, the WBG does not envisage any lending during the period covered by this ISN. This ISN proposes a selective and knowledge-focused program designed to support the Government's development agenda in areas in which the Bank has a clear comparative advantage. It builds on a successful initial engagement which has included Suriname’s accession to the International Finance Corporation (IFC) in September 2011. The Government sees the WBG as a partner that can supply strategic advice and cutting- edge knowledge and best practices on development. The ISN includes a series of policy notes designed to inform dialogue with a new client, build the WBG’s knowledge base in priority areas identified by the Government and support IFC engagement. Given the modest objective of building a partnership with the Surinamese Government through selective knowledge-based engagement, the main risk associated with the ISN is that of the desired deepened engagement not materializing. This risk is mitigated by the Government’s keen interest in building a relationship with the WBG and the WBG’s measured approach to re-engagement. i I. INTRODUCTION 1. This ISN builds on a successful initial engagement over the period 2010 to 2011, and reflects the willingness of the Bouterse government to deepen its partnership with the WBG. The initial engagement has resulted in membership in the IFC; an Accounting and Auditing Report on the Observance of Standards and Codes (ROSC); a Reserves Advisory and Management Program (RAMP) to manage a portion of the country’s foreign currency reserves; and an expression of interest by Government in applying for Candidate status in the Extractive Industries Transparency Initiative (EITI) 1. These early activities have provided a valuable opportunity for the Government and the WBG to build a relationship and informed the preparation of this ISN. 2. Four basic principles will guide the WBG’s engagement in Suriname over the period covered by the ISN: (i) high selectivity of engagement in keeping with limited resources; (ii) a one-World Bank Group approach to more efficiently exploring synergies between IBRD, IFC and the Multilateral Investment Guarantee Association (MIGA) and the deployment of Trust Funds; (iii) flexibility; and (iv) close coordination with development partners in the country. II. COUNTRY CONTEXT 3. Suriname is the smallest country in South America and is endowed with rich natural resources, biodiversity, and pristine forests. It is a low-lying country on the Atlantic Ocean and is situated between Guyana and French Guiana, bordered by Brazil in the south. The country is divided into 10 administrative districts2 with a surface area of approximately 164,000 sq km and a population of about 530,0003, 82 percent of which live in the coastal area, Suriname has one of the lowest population densities in the world. Pristine forests cover about 90 percent of the land, giving Suriname one of the highest per capita forest cover and lowest deforestation ratios in the world. In addition to the forests, the country has rich reserves of fresh water and large areas of arable land. 4. The Government has championed an outward-oriented economic policy. The concentration of the economy in the mining sector has provided for a limited number of trading partners, in particular Canada, the Netherlands, Norway, and the USA. The Government is now strengthening ties with the Caribbean Community (CARICOM)4 and the Unión de Naciones Suramericanas (Unasur, the Union of South American Nations). Suriname is building closer social and economic ties with its neighbors, French Guiana, Guyana, and Brazil. It is also participating in the Initiative for the Integration of Regional Infrastructure in South America (IIRSA) connecting Venezuela, Guyana, Suriname, French Guiana, and Brazil. 1 The EITI is an international initiative involving governments, companies, and civil society that works to strengthen transparency and good governance through the regular publication and verification of company payments and government revenues from oil, gas, and mining activities. 2 The 10 districts are: Brokopondo, Commewijne, Coronie, Marowijne, Nickerie, Para, Paramaribo, Saramacca, Sipaliwini, and Wanica. 3 2010 data from the General Bureau of Statistics of Suriname (Algemeen Bureau voor de Statistiek) 4 Suriname assumed the Chairmanship of CARICOM for a six month period on January 1, 2012. 1 A. POLITICAL CONTEXT 5. Suriname gained independence from the Netherlands in 1975. Dutch is the official language of the country, although English and Sranang Tongo (a native Creole language) are widely spoken. The Netherlands has been the main donor to Suriname since 1975 and is host to a large diaspora community, nearly 345,0005. Since independence, Suriname has been a democracy with a multi-party system, except for two periods of military rule in 1980-87 and 1990-91. The 51-member unicameral National Assembly is elected every five years. Suriname has a presidential system of government, by which the president and vice-president are elected for five-year terms by the parliament, and the government is appointed by the president. 6. President Desiré “Desi� Bouterse began his term on August 12, 2010, after his Mega-Combinatie (Mega Combination) coalition won a legislative majority of 35 out of 51 seats. Bouterse succeeded Ronald Venetiaan who was President of Suriname from 2000 to 2010. During this period, Venetiaan was also leader of the ruling party, the Nieuw Front, which was renamed to Nieuw Front Plus in 2006. President Bouterse has called for national development to be driven by the people and based on democratic principles for good and transparent governance. The President is committed to transitioning the natural resource-based economy to one that is more competitive, inclusive, equitable, and sustainable. The country’s overall positive economic performance under President Bouterse has given his government credibility with the population, but conflicts within the governing coalition and performance issues in some Ministries have led to some changes in the Cabinet. B. RECENT ECONOMIC DEVELOPMENTS Economic Background 7. Suriname’s economy continues to perform well. The economy has emerged from a long period of economic instability recording annual average economic growth above 4 percent since 2006. The economy is one of two in the region (Guyana being the other) that were not significantly affected by the recent global economic crisis (see Table 1). Suriname’s economy is small, with public sector activities, mining, and services constituting the major sectors. The economy has been dominated by the mining and energy sectors (gold, alumina, and oil, primarily), which account for about 30 percent of GDP and more than 90 percent of total exports. The service sector, which makes up 65 percent of GDP, is dominated by trade and transport activities, while personal services and transport and communications have been the fastest growing sectors. In recent years, trade and transport, storage, and communication have emerged as the most important service activities in the country. There is also a significant informal sector, which may increase current estimates of GDP by up to 16 percent if taken into account, according to the Bureau of Statistics. Tourism represents less than 5 percent of GDP. 5 Despite its large diaspora community, at 4 percent in 2010 remittances represent a small proportion of its GDP. 2 Recent Economic Developments 8. Suriname fared well during the global economic crisis, with economic growth estimated to have risen from 3 percent in 2009 to 4.1 percent in 2010 and 4.2 percent in 2011. The country’s recent economic performance, one of the best in the region, has been driven by a rebound in the prices of Suriname’s main commodity exports (gold, petroleum, and alumina), higher production and export of gold and alumina, and increased government spending in 2009-10. In addition to mining and industry, the other goods-producing sectors also recorded relatively strong growth, with agriculture, construction, and fisheries expanding at annual average rates of 8.2 percent, 7.6 percent, and 4.2 percent respectively since 2006. Growth in the service sectors, which averaged 3.5 percent between 2006 and 2010, has largely been underpinned by expansions in restaurants, hotels, and utilities. 9. Inflationary pressures have abated after rising sharply in 2011. Inflation rose from 1.3 percent at end-2009 to 10.3 percent at end-2010, following large wage increases in the civil service, pre-election government spending, as well as higher food and fuel prices (Table 1). In response to a 20 percent devaluation of the Surinamese dollar in relation to the US dollar and a fuel tax increase that raised retail fuel prices by 40 percent in January 2011, 12-month inflation increased to 22.6 percent in April 2011. With tight fiscal and monetary policies in place, however, inflation abated rapidly, with 12-month inflation falling to 15.3 percent at end-2011. By the end of April 2012, it had fallen to 4.2 percent. The devaluation of the currency was necessary to eliminate the discrepancy between the official and the parallel market exchange rates that emerged in 2009-10. 10. Bolstered by the country’s mineral resources, the external current account continues to perform well. Suriname’s current account surplus was estimated at 5.5 percent of GDP in 2011, a decrease of 1.1 percent relative to 2010. The lower surplus balance in 2011 was largely driven by a substantial increase in service imports due to increased domestic construction activity, and it came despite a strong increase in earnings from mineral exports (boosted by higher prices and export volumes for alumina, gold, and oil). Imports grew by about 20 percent, reflecting increased investment in the extractive industries. Gross official reserves at end-2011 reached US$987 million, representing about 5.3 months of imports. 3 Table 1: Suriname: Selected Economic Indicators Est. Projections 2009 2010 2011 2012 2013 (Annual percentage change, unless otherwise indicated) Real Economy Real GDP 1 3.0 4.1 4.2 4.0 4.5 1 Nominal GDP 10.2 11.8 25.8 11.9 11.7 Consumer prices (period average) 0.0 6.9 17.7 6.2 5.5 Exchange rate SRD/US$ (eop) 2.75 2.75 3.35 (as percentage of GDP) Central Government Revenue and grants 25.2 22.8 26.0 25.0 24.1 Total Expenditure 2 27.6 26.0 25.2 24.5 24.1 of which: noninterest current 20.1 20.1 18.5 17.8 17.5 expenditure Overall balance -2.4 -3.1 0.9 0.5 0.0 Non-mineral balance -9.7 -8.0 -8.1 -7.8 -7.4 Net domestic financing 2.1 1.9 -3.5 -1.7 -1.6 Net external financing 0.3 1.2 2.7 1.2 1.7 Total public debt 15.5 18.5 19.1 18.6 18.1 (as percentage of GDP, unless otherwise indicated) External Sector Current account -0.5 6.4 5.5 -0.1 -2.1 Merchandise exports, f.o.b. 46.8 47.9 54.2 54.1 52.0 Merchandise imports, f.o.b. -43.5 -34.1 -36.9 -40.5 -40.4 Capital and financial account 3.5 -5.6 0.2 4.4 6.8 of which: foreign direct 0.1 1.6 7.7 11.1 investment Gross international reserves (US$ 763.0 785.0 987.0 1209.0 1477.0 millions) In months of imports 5.0 4.9 5.3 5.6 6.6 Sources: Suriname authorities; and IMF staff estimates and projections. 1. GDP numbers include estimates for the informal sector. 2. Including statistical discrepancy. 4 11. The overall fiscal balance improved to reach a surplus of 0.9 percent of GDP in 2011 from a deficit of 3.1 percent in 2010. This improvement reflected a notable increase in revenue from 22.8 percent of GDP in 2010 to 26.0 percent in 2011, due to the introduction of new revenue measures and increased economic activity, particularly in the mining sector. Among the revenue measures introduced by the Government were: (i) raising the fuel tax by about 70 percent; (ii) increasing the excise taxes on alcohol and tobacco; and (iii) increasing the presumptive tax on casinos. Non-tax revenues also rose in 2011 due to the increased profitability of the state-owned oil company. The fiscal outturn also benefitted from a decline in recurrent expenditure despite the implementation of the second stage of civil service wage reform (FISO), as well as payments on arrears on goods and services. Capital spending, however, increased from 4.9 percent of GDP to 6.0 percent of GDP in 2011. Government operations were more than covered by external financing of 2.7 percent of GDP, facilitating an increase in domestic balances of 3.5 percent of GDP in 2011. 12. Debt levels declined significantly during the last decade and are currently the lowest in the Caribbean. Total public debt fell from over 70 percent of GDP in 2000 to under 20 percent in 2011, reflecting sustained growth, fiscal discipline, and the renegotiation and repayment of external arrears. The stock of public debt is expected to decline moderately over the medium term, underpinned by robust growth, a stronger fiscal stance and prudent debt management. The IMF estimates that while the debt burden is sensitive to standard shocks, even under various scenarios, the debt-to-GDP ratio is likely to remain relatively low, at just over 20 percent. Surinamese authorities recently raised the legal limit for domestic debt from 15 percent of GDP to 25 percent, while lowering the foreign debt ceiling from 45 percent of GDP to 35 percent.6 In August 2011, Standard & Poor’s raised Suriname’s credit rating from B+ Stable to BB- Stable after the Government reached an agreement to clear arrears with the United States. In early 2012, the government began repaying external debt to reduce risks and net debt service obligations. 13. The economic outlook for Suriname is favorable. Economic growth is projected to reach 4.5 to 7 percent per annum over the medium term and compares favorably with the average annual growth of 4.1 percent since 2006. Growth will be driven by significant FDI and domestic private investments in gold and bauxite mining, as well as in large-scale infrastructure, including utilities, critical roads, and port facilities. Large private investments are underway in the mining sector (such as a new refinery) and others are likely to begin in the near future, including new bauxite and gold mines in eastern Suriname and investments in the power sector, where the aim is to increase the current energy supply of about 355 MW to 525 MW by 2015. Suriname has begun exploratory tests in what is believed to be the world’s second largest unexplored oil reserves off its shared coastline with Guyana and French Guiana. In light of the country’s large amount of arable land, the agriculture sector holds significant growth potential and stands to benefit from enhanced efficiency and diversification. 6 See the 2002 Debt Act for Suriname. 5 C. GOVERNANCE, TRANSPARENCY, AND CORRUPTION 14. Good governance, accountability, and transparency are challenging areas in Suriname and crosscutting priorities of the Government. The Government announced that good and transparent governance based on democratic principles is a necessary condition for motivating society to work towards common development goals. The 2011 PEFA report highlighted important gaps in the areas of investment, budget planning and execution, financial management, internal controls, and external audit. As result, a plan for public financial management reform has been prepared. Suriname generally respects freedom of expression and of the press. 15. Given their key role in the economy, improving transparency in the extractive industries could be instrumental in moving towards better governance and accountability. Suriname’s commitment to join the EITI is a positive step towards improving the transparency of revenue streams in the extractive industries. Suriname ranks moderately in international measures of corruption and transparency. Transparency International’s 2011 Corruption Perceptions Index ranked Suriname at 100 with a score of 3.0. D. POVERTY, HUMAN DEVELOPMENT , AND MDGS 16. Suriname has one of the most ethnically diverse populations in the world, which lives in harmony, enjoying cultural and religious freedom. The ethnic groups7 include: Hindustanis; Creoles; Javanese; Maroons; Amerindians; Brazilians; Chinese; and people of European and other descent. The main religions are Christianity, Hinduism, and Islam. Each ethnic group preserves its own culture, and many institutions, including political parties, tend to follow ethnic lines. The indigenous population lives mostly in the hinterland, sustaining themselves through farming, logging, and mining activities. Suriname does not have an Indigenous Act. 17. Although there is no officially accepted measure of poverty for Suriname, available statistics indicate a high level of poverty and inequality. The UNDP’s 2011 Human Development Report ranked Suriname 104 out of 187 countries. The new Multidimensional Poverty Index (MPI), which has been in use since July 2010, suggests that 28 percent of the population lives in poverty. However, the General Statistics Bureau’s estimates of consumption-based poverty put the household poverty rate at 47 percent. The Food and Agriculture Organization (FAO) estimates that 15-20 percent of the population is undernourished as the variety and quality of their diet is questionable. 18. There are reports of disparities in living standards across the country. This ranges from the affluent suburbs of Paramaribo to the remote Maroon villages of the interior, which are often accessible only by river and with little or no access to services. Although the proportion of the population with access to adequate sanitation (90 percent) and clean potable water (92 percent) is high, only a small percentage of the population in the hinterland has access to adequate sanitary provisions. 7 A new census conducted in 2012 will provide accurate data on ethnic and religious groups. 6 19. Women in Suriname face particular challenges in joining the workforce, especially in politics. Female labor force participation has improved in the last ten years but is still very low at just 38.5 percent – well below the regional average of 51.64 percent (2009). Female workers are concentrated in the service sector (73.2 percent of female employees), while a third of the male work force finds employment in industry (30.8 percent compared to just 8.4 percent of female employees, latest data 2004). The share of women in Parliament is 12 percent (in the 2010-2015 National Assembly 6 out of 51 seats are occupied by women), far below the regional average (23 percent, latest data 2009). 20. According to the latest UN Development Assistance Framework (2012-16), Suriname is on track to meet some of the Millennium Development Goals (MDGs), but inequalities generally exist between coastal and rural areas. Suriname is mostly on track to achieving MDG3 (Promote Gender Equality and Empower Women), MDG4 (Reduce Child Mortality), MDG5 (Improve Maternal Health), and MDG6 (Combat HIV/AIDS) at the national level while challenges remain with regard to MDG1 (Eradicate Extreme Poverty), MDG2 (Achieve Universal Primary Education), MDG7 (Environmental Sustainability), and MDG8 (Partnership for Development). Life expectancy is comparable to high income countries (74 years in 2011) and enrollment in primary and junior secondary school is improving. In general, extreme inequalities persist between the coastal areas and the rural hinterland, which shows very poor indicators relating to all MDG areas. For example, in the interior, progress towards MDG 2 is well below target. III. GOVERNMENT PROGRAM: DEVELOPMENT PLAN 2012-2016 21. In December 2011, the Parliament approved a National Development Plan8 to improve social inclusiveness, economic diversification, and growth. The plan recognizes the country’s development challenges across fifteen themes that can be grouped into five main strategic areas: (1) Good governance: by modernizing the institutions and making them more effective and efficient in delivering quality services; (2) Social development for an equitable society: by improving social protection and citizen security; (3) Economic diversification, competitiveness, and innovation, including through greater PPP efforts; (4) Education for building a knowledge society and competitive skills; and (5) Protecting natural resources and managing the impact of climate change. 8 As the Development Plan is only available in Dutch, this section is based on the Bank’s partial translation of the plan, grouping of the strategic areas, and consultations with stakeholders. 7 22. Strategic Area 1. Good Governance: The Government seeks to initiate reforms to strengthen the effectiveness and credibility of public institutions through increased transparency, effectiveness of service delivery, and accountability of policymakers to citizens. Despite a series of public sector reforms over the past two decades, the management of public resources is weak and performance is highly uneven and very inefficient in most areas9. As institutions operate at a low level of automation, contributing to low productivity and poor service delivery, the Government recognizes e- Government as being an enabler of governance, efficiency, and transparency. The Government also seeks to improve public sector service delivery through the implementation of a plan for reforms in public financial management that would include the recommendations of the Accounting and Auditing ROSC (See Annex A for details). 23. Strategic Area 2. Social Development: Though progress has been made in improving health services and primary school enrolment rates, there are still several issues that need to be addressed in order to enhance human capital development. The Government is committed to the social development of its citizens, and highlights plans to improve the quality and accessibility of the educational system, the availability and accessibility of the health system, and compliance with its “social contract� with all Surinamese citizens, particularly the most vulnerable groups. Among the Government’s priorities is strengthening the social protection system, which is fragmented and lacks effective targeting mechanisms, through the introduction of a conditional cash transfer program10. Establishing satisfactory coverage by health and education services in the hinterland remains a challenge. 24. Strategic Area 3. Economic Diversification, Competitiveness, and Innovation: The Government seeks to enhance innovation for competitiveness and economic diversification as critical areas for the private sector to access and be competitive in global markets. The Government recognizes the country’s dependence on extractive industries and its susceptibility to commodity price shocks. The diversification of the country’s economy in new areas of competitiveness and innovation would require strengthening the business regulatory environment and in particular the areas of starting a business, getting credit, registering property, enforcing contracts, resolving insolvency, and protecting investors11. The Government supports a greater focus on entrepreneurship, value chains, and innovation opportunities in potential high growth sectors such as agribusiness, tourism, forest products, and non-agricultural exports such as meat, poultry, and marine exports. An agriculture plan to incentivize large-scale farming and supply external markets has been developed. The Government also supports investments in broadband internet infrastructure to lower access costs12. 9 The public sector employs 60 percent of the country’s labor force with about 40,000 employees in the central government and 15,000 employees in over 150 state-owned enterprises. 10 With the support of the IDB. 11 According to Doing Business 2012, Suriname performs well, better than the LAC average, on the time for businesses to obtain electricity and to pay taxes. However, starting a business takes 694 days, compared to the LAC average of 54 days. Registering property takes 197 days compared to LAC average of 66 days. 12 Internet monthly subscription is the most expensive in the region at USD43 per month compared to USD19 in Dominican Republic, USD18 in Guyana, and USD12 in Trinidad and Tobago. 8 25. Strategic Area 4. Education for a Knowledge Society: The Development Plan calls for an advanced and gender-inclusive education system13. The Government seeks to improve the quality and internal efficiency of basic education by updating the educational contents and processes, providing inputs to schools, and supporting institutional reforms14. In particular, the Government plans to strengthen the institutional capacity of the Ministry of Education through the introduction of performance management frameworks and professional development courses for education staff. A National Council for Science and Technology will also be created. The Government also underscores the importance of addressing the education and skills gap in order to better utilize the country’s large wealth of natural resources and promote economic diversification and growth. Modernization of the education system through the identification of science, technology, and innovation as key pillars of a knowledge society is also part of the policy agenda. 26. Strategic Area 5. Protecting Natural Resources and Managing the Impact of Climate Change: The Government is committed to the protection and sustainable exploitation of natural resources for sustainable economic growth. Inappropriate exploration of mineral resources and the disturbance and degradation of forests and unregulated squatter settlements are some of the major issues related to environmental sustainability. With the recent increase in interest by foreign companies in new large- scale mining, the Government is seeking to improve the regulatory environment of the sector and to develop a disaster risk management and climate change adaptation policy. IV. THE WBG AND DEVELOPMENT PARTNERS’ ENGAGEMENT IN SURINAME A. WORLD BANK GROUP RELATIONS WITH SURINAME 27. The WBG is re-engaging with Suriname after a 30 year hiatus15. The WBG began a new dialogue with the Venetiaan Government in June 2009 as a result of Suriname’s participation in the Forest Carbon Partnership Facility (FCPF) 16. Shortly after assuming office in August 2010, the Bouterse Government sought to re-engage the WBG as a knowledge partner to strengthen governance, diversify its economy to make it regionally and globally competitive, and improve the management of its vast natural resources. The Government sees the WBG as a source of strategic advice for cutting-edge global knowledge and best practices, and a catalyst in developing synergies with International Development Partners (IDPs). 13 Despite a strong budgetary commitment to education (5 percent of GDP), educational outcomes are weak. As in most countries in the Caribbean, boys are overrepresented among the drop-outs and repeaters and have lower educational outcomes than their female counterparts. 14 The IDB is providing support to these initiatives. 15 From 1980 through 2009, WBG’s involvement was limited to the preparation of four reports: a proposal for a hydropower plan in 1980; a public sector diagnostic in 2002; an HIV/AIDS study in 2004; and an investment report by the Foreign Investment Advisory Service (FIAS) in 2005. 16 In 2011, Suriname agreed to the UNDP acting as delivery partner. 9 B. RECENT WBG ENGAGEMENT 28. Since 2010, a new WBG engagement with Suriname has started to emerge. In September 2011, Suriname joined the IFC, which has since signed a trade finance mandate with one of the larger banks and facilitated Surinamese participation in a central bank training activity17. As of July 31, 2012, IFC's disbursed and committed portfolio totaled US$1.09 million and US$1.09 million, respectively. In 2011, the WBG carried out an Accounting and Auditing ROSC, which identified a low level of professional development in accounting and auditing in Suriname as being a hindrance to the country’s economic development agenda, discouraging foreign investment and hampering financial intermediation and the functioning of the stock market. The Surinamese Government, with WBG support18, has taken steps to meet the conditions to acquire EITI Candidate Country Status, including selecting the Minister of Finance as the “EITI champion� to lead the implementation efforts. Finally, the Suriname Central Bank signed an agreement with the Treasury Department, effective January 2012 for a three- year term, to join the RAMP. C. DEVELOPMENT PARTNERS 29. The Netherlands was the main partner to Suriname from its independence in 1975 up until recent elections. A 1975 treaty that defined the development cooperation between the two countries expired in 2010 after having disbursed about $1.6 billion Euros in grants19. Since then, China and India have become the main bilateral development partners of Suriname. 30. In parallel, the IDB has become Suriname’s main multilateral development partner. The Government recently finalized a country strategy with the IDB for the period 2011-2015. The new strategy proposes a sizable increase in lending, from $103 million to approximately $300 million over the period. Support is articulated around three main pillars: (a) transition to modern public governance structures; (b) economic diversification; and (c) expansion of social benefits. The priority areas include: (i) agriculture; (ii) energy; (iii) education; (iv) financial sector development; (v) public investment management; (vi) social protection; and (vii) transport. 31. The European Union has fully committed its 10th European Development Fund (EDF) for the period 2008-2013, focusing on transport for and restructuring of the banana sector, and on February 15, 2012 the United Nations (UN) signed a development framework with the Suriname government that establishes three focus areas for UN agencies: (i) strengthening statistical information systems and the capacity to analyze and interpret the data for policy formulation and dissemination; (ii) support the development of key legislations, policies, and budgets to promote development; and (iii) reach the most excluded and disadvantaged populations in Suriname. 17 Kuala Lumpur, September 2011 18 Consultations held with stakeholders over a period of one year included indigenous peoples NGOs. 19 In 2010 the remaining funds were programmed; disbursements are expected to end in 2013. 10 32. Bilateral partners are exploring new investment opportunities in Suriname. Canada and the US have strong oil and mining interests and are seeking to expand their investments in Suriname. Brazil and France are exploring investment opportunities in a range of infrastructure and energy projects. In 2011, China also made commitments to invest in infrastructure projects, while India has pledged support to the country’s agricultural sector. 33. In August 2011, the Executive Board of the International Monetary Fund (IMF) concluded the 2010 Article IV Consultation. The next Article IV consultation is expected to take place on the standard 12-month cycle. Suriname does not have any financial commitments with the Fund but has received technical assistance missions in a number of areas, including value-added tax implementation, public financial management, revenue administration, and foreign exchange market. 34. The Government is leading a newly established donor coordination mechanism. A Joint Desk, comprising the Central Bank of Suriname and the Ministry of Finance, was established in November 2010 to lead a more structured and efficient collaboration with donors. V. WORLD BANK GROUP INTERIM STRATEGY FY2013-2014 35. The proposed ISN is the result of a consultative process with the Suriname government, civil society, and development partners. The staff of the Joint Desk helped to coordinate meetings and consultations between the Bank and Government Ministries and Agencies during a series of Bank missions to the country in 2010 and 2011. The Bank also met with Suriname’s other development partners and local NGOs to discuss their potential involvement in the Bank’s activities. Stakeholders welcomed the WBG’s re-engagement with Suriname and expressed support for the approach outlined in the proposed ISN. A. OBJECTIVES OF THE STRATEGY 36. The ISN aims to support the ongoing re-engagement of the WBG in Suriname. It will focus on gradually deepening the WBG’s partnership with the Government and building a knowledge base in areas consistent with client demand, the WBG’s comparative advantages and resource availability, and bringing knowledge and experience in areas of Government interest and commitment to reform. The ISN presents a strategic framework for a flexible program that builds on the productive dialogue of the initial engagement period. Following this approach, the WBG and the Government aspire to establish the basis for a productive relationship that best serves the country’s needs. 11 37. While no lending is envisaged, the WBG seeks to strengthen the relationship by expanding its ongoing engagement, while undertaking further analytical work designed to inform policymakers, build the WBG’s knowledge base, and support IFC activities. The WBG will continue to support the Government’s efforts to join EITI. Through the RAMP, the Central Bank will be provided with on-line learning, visiting WBG missions to build capacity within the Central Bank as well as several unique RAMP workshops per year on a broad array of investment management topics. The WBG will provide the support necessary for implementing the Accounting and Auditing ROSC action plan. The WBG will also support investment climate reforms, particularly those related to the Doing Business Report with a view to improving the country’s ranking. In line with its regional strategy20, the IFC is seeking to provide Public Private Partnership (PPP) and privatization services to the Government to help increase the role of the private sector in the economy and help to promote regional integration, where relevant. The ICT and Broadband sector has been identified as an area for close collaboration with the IFC as it is the most immediate and relevant opportunity to implement successful PPP transactions in Suriname. 38. The WBG is preparing a series of policy notes designed to inform dialog, build knowledge, and support IFC activities. At the Government’s request, and consistent with the new Development Plan, the WBG is currently compiling a set of policy notes which can be grouped into themes: Fiduciary—Fiduciary Note; State Owned Enterprise Governance Policy Note; Competitiveness—Competitiveness Policy Note; ICT and Broadband Policy Note, which will be developed in collaboration with the IFC; and Social Development—Human Development Sector Assessment Policy Note. It is hoped that these policy notes will help to stimulate and enrich the policy debate within Government, as well as provide a basis for the WBG to engage with civil society on issues of relevance. 39. The WBG and Government have agreed to adopt a flexible approach to further assistance, taking into consideration the Government’s priorities and the findings of ongoing analytical work, and working in close cooperation with the development partners. Though not the base case scenario, should dialogue during the ISN period lead to a Government request for further support - including financing - the WBG would undertake the necessary due diligence, including conducting creditworthiness and safeguard assessments. Given the limited availability of resources, assistance will necessarily be highly selective, and new activities that leverage existing regional programs or grant facilities will be prioritized. Should the opportunity arise, the Bank will seek to incorporate gender dimensions in its work. 20 The IFC’s broader Caribbean strategy consists of four p illars: crisis response; financial inclusion and job creation; regional integration and competitiveness; and climate change. 12 B. MONITORING AND EVALUATION 40. The Bank has limited knowledge of the country’s monitoring and evaluation (M&E) systems. The Government has established a national M&E coordinating unit within the Ministry of Finance, and will establish focal points that will monitor the implementation of the Development Plan and its related outcomes. The IDB is supporting the Government with the 2012 population census and the household budget survey in 2013/14. The Bank is committed to working with other donors and expanding M&E efforts in Suriname. The ISN will be monitored internally on a quarterly basis, and externally once a year. VI. RISKS AND RISK MITIGATION 41. The country-specific risk to the ISN is the significant weaknesses in governance and transparency. Weaknesses in governance and transparency could adversely impact implementation of the Government’s Development Plan. There is, however, a strong Government commitment to undertake reforms to modernize the public financial management system and to strengthen transparency and accountability. Suriname’s vulnerability to commodity price volatility may adversely affect economic prospects. A global crisis and resulting economic downturn could reduce demand for Suriname’s key exports and reduce revenue to the government. These developments are expected to constrain economic growth, increase unemployment, strain government finances, and place pressure on the currency. However, the Government has ample room to maneuver on the fiscal side, including enacting fiscal stimulus measures without significantly impairing long-term debt sustainability. 42. Given its modest objective, namely that of deepening the WBG partnership with the Surinamese Government, the main risk associated with this ISN is that a strengthened partnership does not materialize. With a limited knowledge of the country’s development challenges, Government institutions and institutional coordination, political economy of reform, the development operating environment, and the changing roles of other development partners, there is a risk that the ISN engagement does not generally lead to an expanded engagement and a tangible program that supports Suriname’s development. To mitigate this risk, the WBG will continue to maintain an open dialogue with authorities, laying out clearly the WBG competencies and modalities of engagement, and setting realistic expectations in order to lay the foundation for a long- term partnership. Complementing this approach is the Government’s keen interest in establishing a fruitful partnership, and its positive actions to that end, including the establishment of a joint donor coordination mechanism to improve collaboration with donors. 13 ANNEX A: REPORT ON THE OBSERVANCE OF STANDARDS AND CODES (ROSC)—ACCOUNTING AND AUDITING 1. The Bouterse Government has identified private sector-led growth as a key development objective for Suriname to diversify the local economy and also support the participation and competitiveness of the private sector in the global economy. The AA ROSC was requested by the Government with the aim of assisting its efforts to strengthen two key enablers of sustainable and competitive private sector: (i) introducing good accounting and auditing practices in the private sector; and (ii) enhancing financial transparency in the corporate sector. The report provides an assessment of the corporate sector accounting, financial reporting, and auditing practices in Suriname. 2. For Suriname to develop a competitive and efficient financial sector and facilitate the growth of a vibrant private sector, its financial reporting system must be reasonably robust so that it can earn investors’ confidence. A strong financial reporting regime for corporate entities in both the private and public sectors will benefit the Suriname economy in several ways, including:  Contributing to financial sector development by strengthening the country’s financial architecture and helping to reduce the risk of financial crises and corporate failures and their associated adverse economic impacts, as witnessed in many industrialized and developing countries.  Increasing foreign direct investment through greater confidence in, and improved standardization of, financial information.  Facilitating economic integration on an international level through further alignment of Suriname’s national standards and codes with those of its main trading partners.  Improving access to financing for small and medium-size enterprises by providing banks and venture capitalists with standardized, useful, reliable information. 3. Key Findings. Accounting and auditing practices in Suriname should be developed in line with the growing economy as well as with international good practice in order to better address an environment that reflects the following:  The legal and regulatory framework for corporate financial reporting, accounting, and auditing should be strengthened. Currently there is no requirement for accounting standards to be used, nor a requirement for auditing of entities unless specifically mentioned in the Articles of Association of a company.  A review of 25 sets of published accounts and corporate financial statements revealed differences between current practices in Suriname and the International Financial Reporting Standards (IFRS).  In Suriname, the demand for qualified accountants outstrips the supply as the country has only 35 qualified accountants. 14  The Institute of Chartered Accountants of Suriname (SUVA) faces substantial capacity challenges. Moreover, it is yet to become an official independent body in accordance with Suriname law.  Auditors face capacity challenges and are sometimes placed in an invidious ethical position because in practice they are often required to audit the accounts that have prepared themselves. Moreover, at present there is no legal mandate to follow International Standards on Auditing (ISA) for auditing in Suriname.  The academic education in accounting lacks adequate coverage of professional values and ethics.  There is a need to better implement audit quality control standards. 4. Recommendations. Key recommendations for strengthening Suriname’s accounting and auditing practices are: (a) establishing institutional mechanisms for regulating the accounting profession and enhancing the technical capacities of the profession and associated regulatory agencies; (b) establishing independent oversight of the auditing profession; (c) improving professional education and training; and (d) providing guidance for the implementation of adopted reforms. The recommendations proposed in this report are presented for the consideration of the relevant authorities in Suriname. They are suggested as inputs for the development of a country action plan, geared toward strengthening the corporate financial reporting regime in Suriname by building the capacity of relevant players. The recommendations include:  Strengthening the statutory framework by enacting an Accountants Act.  Mandating and implement international financial reporting standards.  Mandating International Auditing Standards.  Strengthening the capacity of the national professional accountancy organization, the SUVA/Institute of Chartered Accountants.  Strengthening the monitoring and enforcement capacity of the Central Bank of Suriname and the Ministry of Finance.  Developing an independent audit quality review mechanism.  Fostering curriculum development, which should include IFRS and ISA.  Regulating the securities market to protect the interests of stakeholders.  Introducing a public awareness program. 5. An action plan has been prepared by the Government of Suriname to further develop accounting and accounting standards and to build sustainable capacity in the key accountability institutions in Suriname. The Government is considering ways in which to effectively implement this Action Plan that consist of: (i) Improving financial governance in parastatals and public enterprises; (ii) Establishing a national accountancy body and building its capacity; (iii) Improving the regulatory environment in the capital market; (iv) Strengthening the capacity of the Central Bank; and (v) Strengthening audit and oversight capacity. 15 ANNEX B1: SURINAME SELECTED ECONOMIC AND SOCIAL INDICATORS Population (in thousands, 2010) 531 Unemployment rate (2010) 7.6 GDP per capita (current US$, 2010) 8,192 Adult illiteracy (percent of population Rank in UNDP Human Development Index (out of 187, 2011) 104 ages 15 and above, 2008) 5.0 Life expectancy at birth (years, 2010) 70.3 Est. Projections 2008 2009 2010 2011 2012 2013 (Annual percentage change, unless otherwise indicated) Real sector GDP at current prices (SRD millions) 9,698 10,683 11,944 15,022 16,812 18,780 GDP at constant prices (SRD millions) 8,395 8,648 9,003 9,377 9,751 10,188 Real GDP Growth 4.1 3.0 4.1 4.2 4.0 4.5 Nominal GDP Growth 20.3 10.2 11.8 25.8 11.9 11.7 GDP deflator 15.5 6.9 7.4 20.8 7.6 6.9 Consumer prices (end of period) 9.3 1.3 10.3 15.3 5.7 5.0 Consumer prices (period average) 15.0 0.0 6.9 17.7 6.2 5.5 Exchange rate (end of period) 2.75 2.75 2.75 3.30 3.30 Money and credit 1/ Banking system net foreign assets 25.5 11.4 3.1 19.3 15.7 15.8 Broad money 11.3 26.6 11.2 11.7 14.9 12.8 Private sector credit 36.3 12.2 10.9 12.0 12.3 11.8 (In percent of GDP, unless otherwise indicated) Savings and investment Private sector balance (savings-investment) 5.0 1.9 9.6 4.7 -0.6 -2.0 Public sector balance 1.6 -2.4 -3.1 0.9 0.5 0.0 Savings 6.0 3.3 1.8 6.9 6.3 5.6 Investment 4.4 5.7 4.9 6.0 5.8 5.7 Foreign savings -6.6 0.5 -6.4 -5.5 0.1 2.1 Central government Revenue and grants 23.8 25.2 22.8 26.0 25.0 24.1 Total expenditure 22.2 27.6 26.0 25.2 24.5 24.1 Of which: noninterest current expenditure 17.6 20.1 20.1 18.5 17.8 17.5 Statistical discrepancy 0.3 -0.7 -0.1 0.3 0.0 0.0 Overall balance 1.6 -2.4 -3.1 0.9 0.5 0.0 Net domestic financing -1.9 2.1 1.9 -3.5 -1.7 -1.6 Net external financing 0.3 0.3 1.2 2.7 1.2 1.7 Central government debt 2/ 15.6 15.5 18.5 19.1 18.6 18.1 Domestic 6.6 8.6 10.8 9.0 8.3 7.2 External 9.0 6.9 7.6 10.1 10.3 10.9 External sector Current account balance 6.6 -0.5 6.4 5.5 -0.1 -2.1 Capital and financial account 2.7 3.5 -5.6 0.2 4.4 6.8 Change in reserves (- increase in US$ millions) -232 -97 -22 -202 -222 -268 Memorandum Items Terms of trade (percent change) 3.3 -1.6 -0.2 0.6 0.9 -0.3 Gross international reserves (US$ millions) 666 763 785 987 1,209 1,477 In months of imports 4.4 5.2 4.9 5.3 5.6 6.6 Exchange rate (SRD per US$, eop) 2.75 2.75 2.75 3.30 … … Sources: Suriname authorities; and IMF staff estimates and projections. 1/ Data for 2011 are at a constant exchange rate of SRD 2.75 per US$ 1. 2/ Includes central government and government-guaranteed public debt. 16 ANNEX B2-1: SURINAME AT A GLANCE 17 ANNEX B2-2: SURINAME AT A GLANCE (CONT’D) 18 ANNEX B2-3: SURINAME MILLENIUM DEVELOPMENT GOALS With selected targets to achieve b etween 1990 and 2015 (estimate clo sest to date sho wn, +/- 2 years) S urina m e G o a l 1: ha lv e t he ra t e s f o r e xt re m e po v e rt y a nd m a lnut rit io n 19 9 0 19 9 5 2000 2 0 10 P o verty headco unt ratio at $ 1 .25 a day (P P P , % o f po pulatio n) .. .. 15.5 .. P o verty headco unt ratio at natio nal po verty line (% o f po pulatio n) .. .. .. .. Share o f inco me o r co nsumptio n to the po o rest qunitile (%) .. .. 3.2 .. P revalence o f malnutritio n (% o f children under 5) .. .. 11.4 7.5 G o a l 2 : e ns ure t ha t c hildre n a re a ble t o c o m ple t e prim a ry s c ho o ling P rimary scho o l enro llment (net, %) 98 .. 91 91 P rimary co mpletio n rate (% o f relevant age gro up) 86 .. 98 86 Seco ndary scho o l enro llment (gro ss, %) 57 52 73 75 Yo uth literacy rate (% o f peo ple ages 1 5-24) .. .. .. 99 G o a l 3 : e lim ina t e ge nde r dis pa rit y in e duc a t io n a nd e m po we r wo m e n Ratio o f girls to bo ys in primary and seco ndary educatio n (%) 116 102 107 105 Wo men emplo yed in the no nagricultural secto r (% o f no nagricultural emplo yment) 41 36 38 .. P ro po rtio n o f seats held by wo men in natio nal parliament (%) 8 16 1 6 10 G o a l 4 : re duc e unde r- 5 m o rt a lit y by t wo - t hirds Under-5 mo rtality rate (per 1 ,000) 52 46 40 31 Infant mo rtality rate (per 1,000 live births) 44 39 35 27 M easles immunizatio n (pro po rtio n o f o ne-year o lds immunized, %) 65 85 84 89 G o a l 5 : re duc e m a t e rna l m o rt a lit y by t hre e - f o urt hs M aternal mo rtality ratio (mo deled estimate, per 1 00,000 live births) 84 39 110 100 B irths attended by skilled health staff (% o f to tal) .. 80 85 90 Co ntraceptive prevalence (% o f wo men ages 1 5-49) 48 .. 42 46 G o a l 6 : ha lt a nd be gin t o re v e rs e t he s pre a d o f H IV / A ID S a nd o t he r m a jo r dis e a s e s P revalence o f HIV (% o f po pulatio n ages 1 5-49) 0.1 0.7 1.0 1.0 Incidence o f tuberculo sis (per 100,000 peo ple) 66 51 80 1 45 Tuberculo sis case detectio n rate (%, all fo rms) 30 21 24 25 G o a l 7 : ha lv e t he pro po rt io n o f pe o ple wit ho ut s us t a ina ble a c c e s s t o ba s ic ne e ds A ccess to an impro ved water so urce (% o f po pulatio n) .. 88 89 92 A ccess to impro ved sanitatio n facilities (% o f po pulatio n) .. 80 81 83 Fo rest area (% o f to tal land area) 94.7 .. 94.7 94.6 Terrestrial pro tected areas (% o f land area) 3.5 3.5 11.4 11.6 CO2 emissio ns (metric to ns per capita) 4.5 5.0 4.6 4.7 GDP per unit o f energy use (co nstant 2005 P P P $ per kg o f o il equivalent) 3.9 .. .. 4.7 G o a l 8 : de v e lo p a glo ba l pa rt ne rs hip f o r de v e lo pm e nt Telepho ne mainlines (per 1 00 peo ple) 9.0 12.4 16.1 16.2 M o bile pho ne subscribers (per 1 00 peo ple) 0.0 0.4 8.8 169.5 Internet users (per 1 00 peo ple) 0.0 0.1 2.5 31.6 Co mputer users (per 1 00 peo ple) .. .. .. .. Education indicators (%) Measles immunization (% of 1-year ICT indicators (per 100 people) olds) 125 100 200 100 75 150 75 50 50 100 25 25 50 0 2000 2005 2010 0 0 1990 1995 2000 2010 2000 2005 2010 Primary net enrollment ratio Fixed + mobile subscribers Ratio of girls to boys in primary & secondary Suriname Latin America & the Caribbean education Internet users No te: Figures in italics are fo r years o ther than tho se specified. .. indicates data are no t available. 4/5/12 Develo pment Eco no mics, Develo pment Data Gro up (DECDG). 19 ANNEX C1: SURINAME IFC INVESTMENT OPERATIONS PROGRAM 2010 2011 2012 2013* Original Commitments (US$m) IFC and Participants 1.09 IFC's Own Accounts only 1.09 Original Commitments by Sector (%)- IFC Accounts only FINANCE & INSURANCE 100 Total 0 0 100 0 Original Commitments by Investment Instrument (%) - IFC Accounts only Guarantee 100 Total 0 0 100 0 * Data as of July 31,2012 20 ANNEX C2: SURINAME IFC INVESTMENT OPERATIONS PROGRAM Suriname Committed and Disbursed Outstanding Investment Portfolio As of 07/31/2012 (In USD Millions) Committed Disbursed Outstanding **Quasi Partici **Quasi Partici FY Approval Company Loan Equity Equity *GT/RM pant Loan Equity Equity *GT/RM pant 2012 DSB Suriname 0 0 0 1.09 0 0 0 0 1.09 0 Total Portfolio: 0 0 0 1.09 0 0 0 0 1.09 0 * Denotes Guarantee and Risk Management Products. ** Quasi Equity includes both loan and equity types. 21