World Bank Document

IV. 

     MANAGING RISKS TO THE CPF PROGRAM 

 

73. 

 Overall risk to the CPF program is rated as substantial. Three of eight risk categories 

are rated substantial―political and governance, macroeconomic, and institutional capacity for 

implementation and sustainability―and two are rated high: fiduciary and environmental and 

social. 

 

74. 

Political will to undertake the structural reforms needed to open the economy to 

private investment is a key prerequisite for effective implementation of the CPF program. 

The needed reforms will confront longstanding vested interests in maintaining the status quo, 

while the authorities’ commitment to increase the economy’s market orientation and the role of 

the private sector remains untested. In addition to monitoring progress together with other 

development partners and stakeholders, this risk would be managed if not partly mitigated by 

providing advice on the sequencing and pace of reforms, as well as hands-on support to address 

capacity issues through technical assistance.