The strategies and policies that govern the EBRD's operations are listed below by type and alphabetically.
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The Grievance Procedures and the Appeals Procedures establish a graduated and defined three-tier appeal mechanism under which a staff member can seek redress of any administrative decision that adversely affects him or her.
The EBRD will not provide financing or award any contract for the supply of goods, works or services to any person or entity that, according to the UN Security Council and/or the counter-terrorism subsidiary bodies of the Security Council, is or may be supporting terrorist activities.
This paper outlines the way in which the EBRD’s engagement with civil society supports the priorities of the Bank’s Strategic and Capital Framework (SCF), namely promoting economic resilience, fostering regional integration and addressing regional/global challenges. Looking ahead to 2020, the Roadmap also outlines how civil society engagement can go even further to support the Bank’s efforts to reenergise transition, promote the qualities of a well-functioning market economy in line with the revised transition concept, as well as address key challenges faced by civil society in the EBRD region. This paper was approved by the Bank’s Strategy and Policy Committee on 21 December 2016.
The African Development Bank, the Asian Development Bank, the European Bank for Reconstruction and Development, the Inter-American Development Bank and the World Bank are making good progress in adopting Managing for Development Results (MfDR) practices. These MfDR practices aim to improve the design, implementation, and evaluation of strategies and operations with a view to achieving relevant development results.
As mandated by Article 13(i) of the Agreement Establishing the Bank, the EBRD applies “sound banking principles to all its operations”. One such principle is to “know your customer”, which requires that the Bank conduct appropriate due diligence on project sponsors and the projects themselves.
Economic inclusion and inequality have become defining political, social and economic issues shaping the EBRD region today.This is the EBRD’s first Economic Inclusion Strategy that follows the update of the Bank’s transition concept that defined economic inclusion as one of the key qualities of a sustainable market economy.
The EIS solidifies the EBRD’s strong commitment to enhancing economic inclusion through its distinct private sector led approach in partnership with its clients and policy stakeholders. In this context, the Strategy draws on the Bank’s Environmental and Social Policy and aligns with the Strategy for the Promotion of Gender Equality (SPGE).
The Enforcement Policy and Procedures (“EPP”) of the European Bank for Reconstruction and Development (EBRD or the Bank) set out the Bank’s policy and procedures for processing allegations of fraud, corruption, collusion, coercion, obstruction, theft or misuse of the Bank’s resources or Bank’s assets in relation to activities and projects financed from the Bank’s ordinary capital resources (including the purchase of the goods, works or services for the Bank) or from Special Funds resources, or from cooperation funds administered by the Bank.
The EBRD is directed by its founding agreement to adhere to sound banking principles and to "promote in the full range of its activities environmentally sound and sustainable development".
The various ways in which the EBRD promotes such development are described in the Bank's Environmental and Social Policy.
One specific step taken by the Bank to address this mandate and the General Principles and Objectives set out in the Policy is to ensure that all of its investment and technical co-operation projects undergo environmental appraisal along with the financial, economic, legal and technical due diligence which is carried out, and ensure appropriate monitoring is undertaken following approval of projects by the Board of Directors.
For this the Bank has developed Environmental and Social Procedures.
This paper explores the political aspects of the Bank’s mandate in relation to ethnic minority rights and suggests the Bank’s future approach. It does so because of the threat to democratic and economic progress from increasing tension in the Bank’s region of operations between many minority groups and their countries’ governments, and also from threats to peace between separate countries.
The approach taken is to consider the status of international and regional protection of the human rights of individuals belonging to minorities, particularly through those bodies or instruments cited in the Agreement Establishing the European Bank and in the Bank’s policy paper on Procedures to Implement the Political Aspects of the Mandate of the European Bank.
This policy establishes the scope and objectives served by evaluation in the EBRD.
‘Fraud and corruption - definitions and guidelines - The purpose of these guidelines is to clarify the meaning and interpretation of the terms “Corrupt Practices”, “Fraudulent Practices”, “Coercive Practices”, “Collusive Practices”, “Obstructive Practice”, “Theft” and “Misuse of the Bank’s Resources” in the context of a Bank Project”.
This strategy mandates the Bank to promote behaviours, through its operations, which contribute to building equitable and sustainable economies. It promotes a vision for a future in which women and men in the Bank’s Countries of Operation, regardless of socio-economic status, have the same rights and opportunities to access finance and assets, lead businesses, participate in decision-making processes affecting their lives and have equal and safe access to public services.
On 7 May 2014, the EBRD Board of Directors approved revisions to three major governance policies: the Environmental and Social Policy, Public Information Policy, and Project Complaint Mechanism Rules of Procedure.
The policies were greatly improved following an extensive consultation with stakeholders, including civil society organisations, industry associations, clients, other international financial institutions, and international organisations. Public meetings were held on the three draft policies in seven countries: Morocco, Ukraine, Georgia, Kazakhstan, Russia, Bulgaria and at EBRD headquarters in the UK.
The EBRD’s Green Economy Transition Approach reflects the needs of its countries of operations and increased focus on environmental sustainability in the context of the Sustainable Development Goals and COP21.
The EBRD recognises the importance of the information that it handles, including information that it receives from and sends to its clients, partners and suppliers.
It also recognises the need to prevent the unauthorised disclosure of sensitive information both inside and outside the Bank.
We have therefore launched a new Information Classification (IC) Scheme.
The Bank’s Integrity Risks Policy and Terms of Reference for the Office of the Chief Compliance Officer
The Internal Purchasing Policy and Procedures are designed to ensure that the purchase of all goods, services and works required for the satisfactory operation of the Bank Headquarters and Resident Offices is handled in a transparent, timely, efficient and effective manner with due regard to international purchasing best practice and the needs of individual user departments.
The Agreement Establishing the European Bank for Reconstruction and Development includes a significant political element in that it specifies that the Bank may conduct its operations in countries of central and eastern Europe which not only are proceeding in their transition towards market-oriented economies, but also are applying principles of multiparty democracy and pluralism.
Soon after the Bank became operational its Board of Directors approved procedures to implement the political aspects of the Bank’s mandate in ways which recognise the critical link between the political and economic aspects of the Agreement.
The Project Complaint Mechanism (PCM) is the EBRD’s accountability mechanism that has been established to assess and review complaints about Bank-financed projects. It provides individual(s) and local groups that may be directly or adversely affected by an EBRD project, as well as civil society organisations, a means of raising complaints or grievances with the Bank, independently from banking operations.
The EBRD’s Public Information Policy (PIP) embodies the Bank’s commitment to enhance the transparency of its activities and promote good governance. This sixth review has been carried out as mandated by the Policy.
The 2014 review was wide-ranging, including internal and external consultations, including extensive meetings with representatives of CSOs.
The Internal Purchasing Policy and Procedures are designed to ensure that the purchase of all goods, services and works required for the satisfactory operation of the Bank Headquarters and Resident Offices is handled in a transparent, timely, efficient and effective manner with due regard to international purchasing best practice and the needs of individual user departments.
The EBRD recognises the importance of the information that it handles, including information that it receives from and sends to its clients, partners and suppliers.
It also recognises the need to prevent the unauthorised disclosure of sensitive information both inside and outside the Bank.
We have therefore implemented a new Secure Mail service called ‘Switch’ to enable the sending and receiving of sensitive data securely.
The Bank’s Strategic and Capital Framework (SCF) 2016 to 2020 set the Bank the goal of supporting its countries of operations in their efforts to improve their economic prospects through re-energising the process of transition to well-functioning market economies. Over the two years that the SCF has been in place, the Bank has made significant progress in helping countries on their path to transition. In addition, it has made substantial advances in an ambitious programme of internal renewal.
The Agribusiness Sector Strategy was approved by the EBRD board on 6th July 2010.
Since the last Operations Policy (approved by the Board in 2002) significant positive developments have materialized in the sector. These include inter alia the emergence of strong local players throughout the value chain; a retail revolution that has greatly improved the quality and format of retail operations; progress in reducing tariffs and trade barriers under the aegis of the World Trade Organisation and an increasing awareness of sustainability issues.
The European Bank for Reconstruction and Development (EBRD) has adopted a new Energy Strategy which will guide its investments in the energy and natural resources sector.
In the strategy the EBRD, already the largest investor in renewable energy and energy efficiency projects in its region, reaffirms its commitment to helping the countries where it invests move towards sustainable energy sectors.
The Strategy assesses the implementation of the previous strategy, describes the challenges faced by the financial sector within the current operating environment and sets out an operational approach focused on supporting the recovery of the financial system as an effective driver of economic growth and strengthening its resilience against future economic downturns.
Through its activities and investments in the information and communication technologies (“ICT”) sector (the “Sector"), the EBRD makes an important contribution to the transition process with the objective of establishing a fully liberalised, market-led, financially self-sufficient Sector.
Municipal infrastructure is probably one of the areas where challenges are the most daunting in the EBRD countries of operations. In 2010, an estimated 26 million people in the EBRD region did not have access to an improved water supply – and six countries had more than one million people without such provision. Eighty-six million people only had access to substandard or shared sanitation. More than 150 million people in the EBRD countries of operations depend on district heating and yet about 10,000 towns and cities in Russia alone and 2,000 in Central Europe await rehabilitation of their systems.
This document sets out the operational role of the Bank in the mining sector and establishes the overall framework for the Bank’s activities. This policy was approved by the Board of Directors in 2017 following the public consultation.
The Micro, Small and Medium-sized Enterprises (MSME) strategy focuses on the core elements of the Bank’s approach towards supporting the development of MSMEs in its countries of operation. Support for MSMEs is central to the Bank’s transition mandate, and the document sets out the underlying principles of EBRD’s activities in the sector going forward.
Countries in the transition region inherited a commercial, logistics and residential infrastructure which suffered from decades of under investment and was not geared to the demands of a market economy.
As the provision of modern real estate infrastructure is essential to support the region’s transition and economic expansion and diversification, the activities of the Bank in the property sector are aimed at complementing, enhancing and creating synergies with the core competencies of the Bank, in particular by building an efficient platform for enterprises and municipalities, whilst applying a high selectivity as far as sponsors and projects are concerned.
The shipping operations policy formally sets out the Bank’s strategy in this sector. Previous to the approval of the policy, there was a Shipping Guidelines document, approved by the Board in December 1994 (BDS 94-161). The shipping operations policy was approved by the EBRD board on 31 October 2001.
This document sets out the Strategy which will guide the Bank’s operations in the transport sector. The Strategy will build on the achievements under the previous EBRD Transport Operations Policy and describe how the Bank will respond to the new challenges which have emerged.
In the period since the adoption of the previous Strategy, Albania has made further progress in democratic reform, to a great extent geared towards integration into the EU. Albania obtained formal status as an EU candidate country in June 2014.
After growing by 7.2 per cent in 2012, Armenia’s economic growth slowed to 3.3 per cent in 2013 and 3.5 per cent in 2014. In 2015, GDP growth is projected to moderate to 2.3 percent in the context of the broader regional downturn to which Armenia is exposed via trade, remittances and investment flows.
Azerbaijan has a presidential form of government with powers concentrated heavily in the executive branch. President Ilham Aliyev has been in office since October 2003 and was re-elected for another five years in October 2013. Since coming to power, President Aliyev has steadily established his political authority. The ruling presidential party has a dominant position in the legislature and in the political system. The October presidential and upcoming parliamentary elections are unlikely to significantly alter the distribution of power during the Strategy period.
Belarus’ political context has been shaped to a significant extent, over the past two years, by changes in the regional geopolitical environment. Since the start of the Ukraine crisis, Belarus has played a constructive role in the region, appreciated by the international community. At the same time, Belarus has moved towards increased international openness, including discussions on the state of affairs regarding democracy and human rights in the country.
Bosnia and Herzegovina’s path to sustainable growth and development requires a much greater focus than before on an enabling business environment for private sector development, strengthened linkages between the two entities and with neighbouring countries and greater exploitation of the country’s natural comparative advantages.
Although Bulgaria is an advanced transition country and an EU member, the country still faces significant transition challenges.
The continuation of the prudent economic policies and an accelerated implementation of the reform agenda are essential conditions for Croatia to make full use of the accession opportunities and the EBRD stands ready to assist it in this direction.
The overarching strategic focus of the Bank in Cyprus is to support transition with institution and market enhancement and deep economic restructuring. This in turn should help the country to overcome the deep economic and financial crisis, in line with the objectives of the EAP.
In Egypt we focus on the development of the private sector, strengthening competitiveness, better economic integration and increased opportunities for women and young people. The EBRD works to improve the quality and sustainability of public utilities through private sector participation and enhancing energy security in the country and good governance.
Estonia implemented the body of EU market regulation prior to accession in 2004 and has benefited significantly from integration into the EU internal market through substantial capital inflows and growing trade shares with the rest of the EU. Estonia has one of the most knowledge-intensive economies in the transition region.
In the period since the adoption of the previous Strategy, Georgian authorities continued to pursue a reform agenda aimed at transforming Georgia into a European democratic state. The constitutional and legislative framework to achieve this objective has been put in place and significant progress has been made on the path of transition to an open market oriented economy. Implementation of the commitments in the areas of the rule of law and independence of the judiciary will contribute to the continued development of Georgia’s democratic institutions.
During the period 2008-15, the Greek economy went through a dramatic economic contraction. In order to contribute to the country’s recovery the EBRD was mandated in 2015 to engage in Greece with investments and policy dialogue for a temporary period until the end of 2020. Provided macroeconomic and political stability are maintained, and if investment picks up from current levels, the potential for a bounce-back from 2017 onwards is strong. Growth rebalancing is expected to be driven by the ongoing shift to a more export-oriented growth model and the development of Greece’s potential in areas such as tourism, logistics, regional energy projects, energy efficiency, food processing and pharmaceuticals.
Although Hungary is amongst the most advanced countries in the transition region in terms of market reform, significant transition gaps remain in several areas.
Jordan is a constitutional monarchy that, over the past three years, has undertaken significant political reforms against a backdrop of social, economic and security challenges resulting from regional turmoil and external shocks.
Kazakhstan’s economic growth slowed to 1.2 per cent in 2015 and further to 1.0 per cent in 2016, compared with 4.3 per cent in 2014, largely driven by the decline in oil prices. Although the legacy of high non-performing loans (NPLs) continues to weigh on the banking sector, growth is expected to improve to 2.4 per cent in 2017, supported by recovery in Russia, higher commodity prices and strong domestic and foreign investment. The exchange rate has stabilised, Tenge liquidity has improved, the base rate is declining and inflation is on a downward trend.
Kosovo is committed to and applying the principles of multiparty democracy, pluralism, and market economics in accordance with the conditions specified in Article 1 of the Agreement Establishing the Bank.
The Kyrgyz Republic is making progress towards becoming a multi-party democracy. With its many functioning political parties, a relatively free media and a network of active civil society organisations, the Kyrgyz Republic continues to feature well in the regional context.
Latvia is among most advanced transition countries in the EBRD region. However the scale of the impact of the economic crisis on the Latvian economy has exposed areas that require a further acceleration of reforms and where the EBRD can be of support.
Despite successful market-oriented and democratic reforms, Lithuania was hit hard by the global financial crisis of 2009-2010. The crisis revealed a number of remaining reform challenges, particularly in the areas of competitiveness and public and corporate governance.
The Former Yugoslav Republic of Macedonia (FYR Macedonia) continues to meet the conditions specified in Article 1 of the Agreement Establishing the Bank.
FYR Macedonia has made steady progress in transition over two decades, but still faces significant challenges across sectors. Given that the country is small and landlocked, the key challenge is to increase FYR Macedonia’s level of integration into regional and global markets. The Bank is well positioned to assist in this process both by supporting the development of key transport corridors, allied to strong and intensified cooperation with key partners such as the European Union and the European Investment Bank, and by promoting private sector development and cross-border trade and investment, building on the numerous business-friendly reforms introduced by the authorities over recent years.
The pace of the reform process has been uneven in the previous strategy period, partially owing to Moldova’s contentious politics, although stability has strengthened since the establishment of a new coalition government in January 2016. The EU-Moldova Association Agreement, including DCFTA, fully entered into force in 2016, and a three-year IMF programme was approved in the same year, reopening international budget support and providing an anchor for reform.
Mongolia continues to meet the conditions specified in Article 1 of the Agreement Establishing the Bank. In more than two decades since the beginning of transition, the country has made significant progress on the path to pluralistic democracy and an open market-oriented economy.
Montenegro is committed to and applying the principles of multiparty democracy, pluralism and market economics in accordance with the conditions specified in Article 1 of the Agreement Establishing the Bank.
Over the past two and half years, Morocco has made notable progress in its reform of political institutions. It adopted a new Constitution approved through a public referendum, undertook a free and fair parliamentary election and formed two governments based on a parliamentary majority.
Poland has made impressive progress in building democratic institutions since the beginning of transition, having consolidated its democratic system in the process of acquiring EU membership. Political pluralism is further strengthened by the existence of a vibrant civil society, independent media and democratic political tradition.
Although Romania is an advanced transition country and a member of the European Union, the country still faces significant transition challenges in the coming years in certain sectors.
The Russian Federation is committed to the principles of multiparty democracy, pluralism and market economics in accordance with Article 1 of the Agreement establishing the Bank, although progress in the application of these principles during the previous Strategy period has been uneven.
Economic growth has returned, as the country has largely overcome the economic disruption in the wake of the severe floods in 2014. The pace of economic reforms has also accelerated, and Serbia was named among the top ten performers in the 2016 World Bank Ease of Doing Business report. A three-year agreement with the IMF was signed in 2015, with implementation of structural reforms a key element. Serbia continues to advance steadily on its path to EU membership and is an active participant in the Berlin Process, seeking closer integration with its Western Balkan neighbours. The EBRD supports these processes both through investments and policy engagement and will continue to do so – coordinating with multilateral and bilateral partners -- in the coming strategy period.
With GDP per capita reaching 77 per cent of the EU-average, the Slovak Republic is the second wealthiest economy in the Central Europe and Baltics region. Growth has remained stable, at 3.3 per cent in 2016, supported by strong private consumption and net exports. Since the early 1990s, the country has made spectacular progress on moving from a planned system, showing great progress along all six qualities of a sustainable market economy identified by the Bank
The EBRD’s Board of Directors has approved a new country strategy for Tajikistan which will define the Bank’s activities in that country for the next three years from 2015 to 2018. Bank operations in Tajikistan started in 1992 with technical cooperation, with the first investments in 1996. During this time, the EBRD has concentrated on private sector development, which accounts for over 70 per cent of the Bank’s investment there.
Economic activity moderated to 2.9 per cent in 2014, and financial markets remained volatile and vulnerable to shifts in global sentiment. Nevertheless, drivers of growth have become more favourable, with net exports taking over as the main driver of growth following a sharp depreciation of the lira at the turn of 2014.
In 2015, the positive impact of lower oil prices on growth will likely be offset by continuing weakness in external demand and developments in the euro-dollar exchange rate, affected by the diverging monetary policy between the Fed and the ECB.
The post-crisis recovery is expected to be protracted due to weak domestic demand, ongoing adjustment to the terms of trade shock, lingering problems in the financial sector, the limited capacity of government to provide further fiscal stimulus to attract inward investment. The announced structural reforms, if implemented fairly, should contribute towards increasing the country’s long-term growth potential and help mitigate the post-crisis macroeconomic vulnerabilities.
