THE ROLE OF INTERNATIONAL THE ROLE OF INTERNATIONAL ORGANIZATIONS IN THE CZECH ORGANIZATIONS IN THE CZECH

REPUBLICREPUBLIC

THE ROLE OF INTERNATIONAL THE ROLE OF INTERNATIONAL ORGANIZATIONS IN THE CZECH ORGANIZATIONS IN THE CZECH

REPUBLICREPUBLIC

Group Members:Despina Mertzios Martina SedmakLenka StrakovaEkaterina Zarovsky

Group Members:Despina Mertzios Martina SedmakLenka StrakovaEkaterina Zarovsky

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CONTENTSCONTENTS

1. Introduction: The Czech Republic

2. The World Bank Group and the IMF

3. EIB and EBRD

4. NGO‘s

1. Introduction: The Czech Republic

2. The World Bank Group and the IMF

3. EIB and EBRD

4. NGO‘s

3

• 1st January 19931st January 1993

• area: 78,864 kmarea: 78,864 km22

• population: 10.3 millionpopulation: 10.3 million

• density: 130 inhabitants/kmdensity: 130 inhabitants/km22

• 3 historical territories3 historical territories

• 1st January 19931st January 1993

• area: 78,864 kmarea: 78,864 km22

• population: 10.3 millionpopulation: 10.3 million

• density: 130 inhabitants/kmdensity: 130 inhabitants/km22

• 3 historical territories3 historical territories

1. GENERAL CHARACTERISTICS OF THE CZECH REPUBLIC

1. GENERAL CHARACTERISTICS OF THE CZECH REPUBLIC

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1. LOCATION IN CEE1. LOCATION IN CEE

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1. REGIONAL STRUCTURE1. REGIONAL STRUCTURE

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1. SETTLEMENT STRUCTURE1. SETTLEMENT STRUCTURE

• highly diversified and dispersed across the territory

• sub – urbanisation

• urban population: 70,9 %

• non - urban population: 29,1 %

• highly diversified and dispersed across the territory

• sub – urbanisation

• urban population: 70,9 %

• non - urban population: 29,1 %

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1. POPULATION (I)1. POPULATION (I)

• decrease in population - low number of births

Development of Population in the Czech Republic

in 1991 – 2000

• decrease in population - low number of births

Development of Population in the Czech Republic

in 1991 – 2000

10.240.000

10.260.000

10.280.000

10.300.000

10.320.000

10.340.000

10.360.000

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

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1. POPULATION (II)1. POPULATION (II)

• life expectancy – growing

• ageing of population

• national structure - relatively homogenous

• life expectancy – growing

• ageing of population

• national structure - relatively homogenous

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1. INFRASTRUCTURE 1. INFRASTRUCTURE

• transport infrastructure: transport infrastructure:

– highways, roads, railway network highways, roads, railway network

density vs. qualitydensity vs. quality

• transport infrastructure: transport infrastructure:

– highways, roads, railway network highways, roads, railway network

density vs. qualitydensity vs. quality

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1. MACRO-ECONOMIC DATA (I)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. 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)

-14-12-10-8-6-4-202468

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

% g

row

th

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1. MACRO-ECONOMIC DATA (II)1. MACRO-ECONOMIC DATA (II)

2. Inflation (2 price shocks - 1991 and 1993)2. Inflation (2 price shocks - 1991 and 1993)

Inflation

0

10

20

30

40

50

60

%

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1. MACRO-ECONOMIC DATA (III)1. MACRO-ECONOMIC DATA (III)

3. Unemployment (appeared at the beginning of transformation process; low between 1992-1996; growth since 1997)

3. Unemployment (appeared at the beginning of transformation process; low between 1992-1996; growth since 1997)

Unemployment rate

0

2

4

6

8

10

12

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

%

13

1. MACRO-ECONOMIC DATA (IV)1. MACRO-ECONOMIC DATA (IV)

4. Regional unemployment: October 20034. Regional unemployment: October 2003

Unemployment rate in %

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2. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (IBRD)

2. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (IBRD)

• Czechoslovak Government's reform program in 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

• Czechoslovak Government's reform program in 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

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2. IBRD (I)2. IBRD (I)

Source: The World Bank, Project Statistics in the EU Accession Countries:  Lending Activities by Accessing Countries between 1989 and 2002

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2. IBRD (II)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

• to finish 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

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

• to finish 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

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2. INTERNATIONAL FINANCE CORPORATION (IFC)

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 m and mobilized US$150 m to support restructuring NOVA HUT (1997)

• its role is diminishing

• 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 m and mobilized US$150 m to support restructuring NOVA HUT (1997)

• its role is diminishing

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2. MIGA, IDA, ICSID2. 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

• 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

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2. INTERNATIONAL MONETARY FUND (IMF)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

• 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

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2. CRITICISM ON THE IMF2. 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

• 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

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2. CONCLUSION2. 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

• 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

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3. EUROPEAN INVESTMENT BANK (EIB)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

• 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

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3. EIB LOANS TO THE CZECH REPUBLIC SINCE 1990 (I)

3. EIB LOANS TO THE CZECH REPUBLIC SINCE 1990 (I)

Czech Republic Million €

   

Modernisation of telecommunications network 195

Upgrading of Berlin-Prague-Vienna railway 200

Oil pipeline between Czech Republic and Germany 100

Upgrading of lignite-fired power stations to reduce flue gas emissions 200

Air Products Europe 14.34

Improvement of E-roads, including four new bypasses 60

Upgrading 216 km of the Czech stretch of Warsaw-Ostrava-Vienna railroad 200

Heat and power plant serving Skoda factory and city of Mlada Boleslav 55

Modernisation and expansion of Skoda motor-car plant 100

62 km motorway (Prague-Nürnberg) stretch between Pilsen and Czech-German border 165

Repairs to infrastructure damaged by August 1997 Floods in Northern Moravia 200

Building of six motorway stretches totalling some 100 km 400

Upgrading of water and sewerage networks in Prague 50

Rehabilitation of the motorway network 95

Upgrading of the E-roads network including several by-passes 100

Urban infrastructure in the city of Prague 70

Extension of Prague Metro 75

Framework loan to Konsolidacna Banka: Financing a large number of municipal water schemes 100

Upgrading of railway line between Ceské-Trebova and Prerov 160

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3. EIB LOANS TO THE CZECH REPUBLIC SINCE 1990 (II)

3. EIB LOANS TO THE CZECH REPUBLIC SINCE 1990 (II)

Expansion of fiber-optic telecommunications network (Viking) 25

Expansion and modernisation of the Masaryk University in Brno 95

Flood Prevention 60

Construction of a manufacturing facility for refrigerators and freezers in Podborany 18

Extension of Prague metro network (Line B) 75

Plzen Motorway By-Pass 210

Reconstruction of infrastructure damaged by floods in 2002 400

Prague Metro Flood Damage 80

Prague Airport Terminal 280

Prague Metro II 75

TPCA Car Plant Kolin 450

Global loans for financing smaller scale projects to: 57

Czech National Bank 57

Bank Austria Creditanstalt 35

Hypo Vereinsbank 135

Commerzbank 10

Deutsche Bank 10

Ceskoslovenska Obchodni Banka, a.s. for financing smaller projects in the Czech Republic 50

Volksbank Czech Republic 45

Kommunalkredit East West 15

   

Total Czech Republic 4664.34

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3. EIB AND RESULTS FOR THE CZECH REPUBLIC3. 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

• EIB projects: always in conjunction with others

• responsible for grant aid - ISPA and SAPARD

• implementation of different schemes

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3. EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT (EBRD)

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

• 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

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3. EBRD‘s PORTFOLIO IN THE CZECH REPUBLIC3. EBRD‘s PORTFOLIO IN THE CZECH REPUBLIC

Sector No. Of projectsEBRD finance

(million €) portfolio share(%)

general industry 2 42.6 8

industry and commerce 13 122.7 22

agribusiness 4 26.2  

property tourism and shipping 5 53.3  

telecom informatics and media 4 43.0  

financial institutions 34 288.8 56

bank equity 1 125.0  

bank lending 5 38.8  

non banking financial institutions 8 48.6  

equity funds 20 77.2  

infrastructure 7 76.3 14

transport 1 12.4  

municipal and environment infrastructure 2 28.6  

energy efficiency 3 34.0  

power and energy 1 1.3  

TOTAL 56 530.4 100

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3. EBRD AND RESULTS FOR THE CZECH REPUBLIC

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

• 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

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4. NGO‘s4. NGO‘s

• what is an NGO

• important for the community

• important for the companies

• what is an NGO

• important for the community

• important for the companies

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4. NGO‘s IN THE CZECH REPUBLIC4. NGO‘s IN THE CZECH REPUBLIC

• breakdown of communism

• fields of action

• types of institutions

• sources of financing

• breakdown of communism

• fields of action

• types of institutions

• sources of financing

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4. FIELDS OF ACTION4. 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

• 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