World Bank boss learns in Russia
It is no secret that the World Bank is going through a bit of a crisis with restructuring, This process concerns how it does business and its budget. However Michael Carter who heads the bank in Poland and the Baltic States does not believe that any major changes could take place that will effect it in this country. It has already begun several projects in the agricultural, educational, mining and rail sectors which will continue.
He claims that the projects in Poland are to make economic transformation easier. Carter is particularly worried about the high level of unemployment in this country and believes that new laws and a tighter correlation between monetary and fiscal policy is required.
He says that he was pleased about last week's interest rate cuts although says that the MLR is still very high.
The experience of the World Bank shows that export is one of the most important factors in creating jobs. However the high rate of PLN and the slowdown in GDP growth is effectively hindering it.
For five years Michael Carter headed the World Bank in Moscow. He thinks that Poland can learn from its neighbour especially in the field of investment climate. He is also positive about Russia's fiscal policy.
Michael Carter says that sixty percent of Russian coal production comes from private companies which has led to notable improvements in productivity. He says that it is a good example for this country which has been struggling with pit privatisations for a long time.