World Bank Involvement in Roma Issues

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1 World Bank Involvement in Issues Summary: are the main poverty group in many of the countries in Central and Eastern Europe. They are more likely to fall into poverty, and to remain poor than other population groups. In Bulgaria, for example, were found to be ten times more likely to be poor than other ethnic groups. Poverty among is multidimensional, related to low education levels, poor health status, high unemployment, inadequate housing, and compounded by widespread exclusion and discrimination within society. In the EU accession countries, constitute deep pockets of poverty, within relatively well off populations. The World Bank has been actively engaged in work on over the past three years. Our initial involvement was motivated by findings on poverty in the region, as well as by direct requests from governments for our involvement. Areas of activity include: (i) (ii) (iii) (iv) Framing the issue as a poverty issue. Placing poverty and human development at the center of the discussion of issues and acting as an objective information broker, bringing together diverse interests and stakeholders; Knowledge building, through support of targeted studies and analysis, in order to provide the basis for policy and strategy development by governments and other partners. Capacity building and strategy development for governments in addressing issues related to and ethnicity, as well as for strengthening leadership within organizations. Operational support, through support of sectoral reforms, assistance to community based organizations through Social Development Fund mechanisms, and direct grant support to NGOs, in order to ensure that social services reach, and meet, the needs of communities in a culturally appropriate manner. In all of these areas, the Bank is working closely with other partner organizations, most frequently, the European institutions (Council of Europe, European Union), the Soros Foundation in New York, and its country level Open Society Institutes. 1

2 BACKGROUND Who are the? are a unique minority in Europe. Unlike other groups, have no historical homeland and are found in nearly all countries in Europe and Central Asia. Current estimates indicate that between 7 and 9 million live throughout Europe, making them the largest minority in Europe. Their origins are the subject of much debate. Historical records suggest that migrated from northern India into Europe in waves between the ninth and fourteenth centuries. While some groups are nomadic, the vast majority of in Central and Eastern Europe have settled, some under the Austro-Hungarian and Ottoman empires, and others more recently during the socialist period. A defining characteristic of is their diversity. There are numerous subdivisions of based on various cross-cutting divisions, including family groups and religion. Ethnographers have identified 60 different groups in Bulgaria and similar diversity is believed to exist in other countries. In addition to these ethnic differences, there is significant diversity among settlements: rural/urban, assimilated/non-assimilated, homogenous/heterogeneous, as well as affiliations with different religious denominations. Some groups speak variations of the language, while others do not. Populations. Estimates of the size of the population differ widely across sources. Census data are intensely disputed, as many do not identify as in the questionnaires. By most estimates, the share of has grown to between 6 and 9 percent of the population in Bulgaria, Macedonia, nia and the Slovak Republic. These shares are likely to increase in the near future because of the high population growth among and decreasing fertility among the majority populations. nia is the country with the highest absolute number of in Europe, estimated at between 1 and 2 million. Large populations of between 400,000 and one million live in neighboring Hungary, Bulgaria, the Slovak Republic, Turkey and Serbia and Montenegro. In Western Europe, the largest populations are found in Spain (estimated at 750,000), France (310,000), Germany (120,000) and Italy (100,000). Poverty. are the most prominent poverty group in many of the countries of Central and Eastern Europe. are both poorer than other population groups, and are more likely to fall into poverty and remain poor. The table below illustrates poverty rates for and non- populations in three countries: Bulgaria, Hungary and nia, using a recent cross-country household survey. 2

3 Why are poor? The roots of poverty are connected to their unfavorable starting point at the outset of the transition period with low education levels and overrepresentation among low-skilled jobs which led to disadvantages on the labor market. Compounded by discrimination and low expectations of employers, have had more difficulty re-entering the job market than other groups, and have consequently become caught in a vicious circle of impoverishment. Figure 1: Poverty Rates, 2000 (% of population below $4.30 PPP per day) Non- Non- Non- Bulgaria Hungary nia Source: Revenga, Ringold and Tracy, Forthcoming, Additional barriers, including a lack of access to credit and clear property ownership, combined with an over-dependence on social benefits creates a poverty trap and precludes many from improving their living conditions, or starting their own businesses. Persistent disadvantages in education, including low school attendance and overrepresentation in special schools, which limit future opportunities, create a high probability that without policy interventions the next generation of will continue to remain in poverty. Very few are active in local or national politics, which limits their political voice. Regional Context. issues have gained increasing international attention over the past decade, because of emerging evidence of human rights violations, and seriously deteriorating socioeconomic conditions within many communities. These developments raised the attention of international organizations, such as the Council of Europe, and the OSCE, as well as NGOs including the Soros Foundation, Save the Children and UNICEF. Perhaps most significantly, issues have become an integral part of the European Union accession process, as attention to issues was adopted in 1993 as part of the Copenhagen criteria for accession. Four representatives were elected to Parliament in the Hungarian elections held in the Spring, a record number for the region. At the international level, NGOs, including the International ni Union, and the National Congress have become increasingly active. Despite these achievements, leaders face notable obstacles, including acceptance by their communities and the challenge of representing a diverse and fragmented minority. 3

4 In Their Own Words Social assessments of communities throughout the region have highlighted the range of different experiences and living conditions, across and within countries. Snapshots from around the region provide a window into this diversity and underscore the various challenges they face. Education: Many children do not attend school. Some parents are unable to send their children to school because of lack of basic supplies, or even clothes. In other cases, barriers include social and cultural factors, such as language. We can t afford to send them to school in the winter. We have no sneakers, no proper shoes for snow. They can t go to school in slippers. They don t have jackets or warm clothes either. We can t afford anything copybooks, pens Children have no money for meals. That s why they don t go to school. Parent, Bulgaria Children from segregated settlements do not master the Slovak language and do not understand their teachers. The teachers do not speak the language, so they communicate by using gestures. School Director, Slovakia. While demand for education is low among some communities, other parents expressed a strong interest in their children s education and recognized its importance for their success in the future. My grandson is a first grade student. We sent him to kindergarten and hope in the future that he will put more importance on education than we did. Grandparent, Slovakia. I waited for my daughter to return from school every day, and asked her what happened at school. I sat beside her when she was writing up her homework. I would not let her go out until I saw that she had finished. I would not allow anyone at home to touch her and make her do some other housework I do not know what will happen to her after she completes her education, but whatever that is, it will be better. She can become a doctor, a teacher, she will go higher than us. Parent, Bulgaria. Employment: Formal unemployment in some settlements can reach 90 to 100 percent. Many face severe obstacles in finding a job because of their low education and skill levels, as well as discrimination on the labor market. Who is going to give me a job? I have no education, no skills and am, even in my neighboring village nobody wants to give us any work. 35 year old father of five in Slovakia. If his Bulgarian name is Angel or Ivan or Stoyan or Dragan, he ll get all the application forms and be asked to come in. As soon as they realize he s Gypsy,, he s turned down, they lower their voices and tell him to come some other time. When your name is Bulgarian and they see you are a Gypsy, they throw you out!, Bulgaria. Identity: In Hungary, experiments with alternative education for high school students, which include language, culture and history in the curriculum, have sparked interest in identity among young people. I would like to know more about the origin of my people and our values. Student, Hungary My grandmothers spoke the language and my parents can understand it. I do not speak the language, but I would very much like to learn it. Student, Hungary 4

5 WORLD BANK INVOLVEMENT The Role of the World Bank. The Bank addresses issues in the context of its work on poverty and economic development in the region. The comparative advantages of the Bank in issues are: (i) raising politically sensitive issues as an objective information broker, bringing diverse interests and stakeholders together; (ii) supporting integrative and constructive analytical work which brings together economic and social issues as they affect and other vulnerable groups; (iii) sharing innovative approaches across countries and regions, and scaling up viable approaches, programs and projects; (iv) mainstreaming ethnicity into policy to make public services more inclusive; and (v) leveraging and informing the involvement of other donors. Improving the Information Base. The Bank has increased the quality and availability of basic information on the welfare of in ECA. Despite the severity of poverty and marginalization among, information on their living conditions and the characteristics of their poverty has consistently been scarce and fragmented, due to methodological problems and the politicized nature of the issue. Our analytical work has raised the profile of issues in countries, partner institutions, as well as within the Bank itself. Bank analysis of issues related to has a number of objectives, including identifying issues, providing a basis for policy dialogue with countries and project identification. Analytical activities also include extensive dissemination and dialogue on findings. Because of the regional nature of this issue, we have made an extensive effort to share results and lessons across countries. For example, a workshop held in Bratislava in April 2001, together with the European Union and the Open Society Institute discussed project experience in Hungary and Slovakia and aimed to share experiences across the countries. Key products have included: A regional study of in ECA which summarizes the evidence related to poverty and the human development status of in ECA. The report was launched at the Annual Meetings in Prague in September 2000, and has been widely disseminated since then. The nian Government translated the report into nian on its own initiative. A qualitative study of poverty in settlements in the Slovak Republic, cofinanced by the Open Society Institute. This study was designed and implemented by Slovak sociologists, including, to document the living conditions of living in settlements on the outskirts of towns and villages. The report was launched through a series of seminars in Slovakia, including at the Parliament, as well as at a major event held in Washington during the 2002 Spring Annual Meetings, co-hosted with the Slovak Embassy. 5

6 An inventory of projects implemented in Hungary over the past decade. A team of Hungarian researchers compiled a comprehensive database of over 1,300 projects, in addition to in depth case studies. The database has been made publicly available by the Bank and the Open Society Foundation, and is being used by the Hungarian government and European Union for project planning. A regional study of poverty in Bulgaria, Hungary and nia. This report is based upon the first comparative cross-country household survey of implemented in the region. The survey was coordinated by a team of researchers at Yale University and co-financed by the Bank. Capacity Building and Strategy Development. The Bank supports policy development related to at the country level, through sectoral dialogue, as well as institution-building for developing and implementing policies related to. Since the mid-1990 s most of the countries in Central and Eastern Europe have established new institutions which are responsible for coordinating policy on, and ethnicity in general. In Slovakia and Bulgaria, the Bank has supported the creation of these new offices with grant resources from the Institutional Development Fund (IDF). Grant support includes installing mechanisms for monitoring projects and policies, referral services, and coordination among NGOs and donors. The Bank is currently developing a program of support for the newly established Secretariat for Affairs in Hungary. Operations. While governments have been reluctant to borrow directly for issues, because of political sensitivities, Bank operations are reaching communities, mostly through their participation in Social Development Funds. Governments are also beginning to address ethnic issues in the context of Bank loans. Social Development Funds in Bulgaria and nia, while not explicitly targeted at, support sub-projects. Because direct lending is limited, we have taken maximum advantage of internal grant resources, including the Institutional Development Fund, Development Grant Facility and Small Grants Program. In Bulgaria, the Regional Initiatives Fund supported employment generating micro-projects. 20 percent of the workers hired under the projects were, and over 60 percent were ethnic minorities (e.g. Turks and Bulgarian Muslims). A successor project is being designed to provide for greater outreach among the population. In nia, 5 percent of the beneficiaries of the first nian Social Development Fund (RSDF) were. Sub-projects included small-scale rural infrastructure (water supply, road rehabilitation), community-based social services (day care centers, information and counseling centers, family planning) and income generating activities (small brick manufacturing, handicrafts). The second RSDF, approved in FY02, will target more intensively through the participation of speaking facilitators and project supervisors, and translation of project materials into the language. 6

7 Child Welfare projects in nia and Bulgaria support the transition from institutions to community-based alternatives for care. In both countries, constitute a disproportionate share of the children in orphanages and institutions for mentally and physically disabled children. In Bulgaria, the project explicitly targets ethnic minorities, through measures to prevent children from entering into institutions in the first place (e.g. preschool programs with language training). These activities are supported with a grant from the Japan Social Development Fund. A post-conflict grant for FYR Macedonia supports youth and families in the Suto Orizari neighborhood of Skopje, including activities to improve school attendance and improve the quality of education. Direct support to NGOs. Through the Small Grants Program (SGP) managed by ECA Country Offices the Bank directly supports a number of projects. Grant amounts range from $2,000 to $5,000. In Hungary, Bulgaria, nia and Slovakia support has been provided for small-scale initiatives in the areas of education, employment, housing and media related projects. The SGP has also provided support to international NGOs. It supported the Congress of the International ni Union (IRU) which was held in Prague in The IRU is one of the most influential international organizations operating currently. The SGP also provided resources to the World Festival in 2001 and 2002 which brought together artists and experts from Europe, North America and South America. On a larger scale, through its Development Grant Facility (DGF), the Bank has supported the work of the Pakiv Fund, run by a Hungary-based NGO. The Fund is being established to provide grants and interest-free loans to poor communities in order to develop employment and income generating projects. The Fund will operate in four countries in the region: Bulgaria, nia, Hungary and Slovakia. DGF resources support the establishment of the local organizations and staff training. Partnerships. World Bank involvement in issues is closely coordinated with partner organizations, including most frequently the European institutions, local NGOs and the Open Society Foundation. The Bank has participated with observer status on the Council of Europe s Specialist Group on /Gypsies since Other joint activities have included collaboration on analytical work in Slovakia with the Open Society Institute and two local Slovak NGOs, and frequent participation in conferences and workshops in the region. The World Bank also plays a prominent role in donor coordination and has convened and/or participated in donor meetings on in Bulgaria, Hungary, Slovakia, nia and Serbia. Bank involvement also informs and catalyzes the involvement of other donors. In Bulgaria, the IDF grant has been instrumental in mobilizing EU resources for projects including training of teachers and law enforcement officers, and for support to a newly established State Agency for Anti-Discrimination and Equal Opportunities. 7

8 Annex 1: World Bank Publications and Studies Addressing Issues European Centre on Health of Societies in Transition (ECOHOST), Health Needs of the Population in the Czech and the Slovak Republics. Puporka, L. and Zádori, Z., The Health Status of in Hungary, World Bank Regional Office Hungary, NGO Study No. 2. Published in English and Hungarian. Revenga, A., Ringold, D. and Tracy, W Poverty and Ethnicity: A Cross-Country Study of Poverty in Central Europe. Forthcoming World Bank Technical Paper. Ringold, D and the Transition in Central and Eastern Europe: Trends and Challenges, Report prepared for the Annual Meetings in Prague. Translated into nian. Rughinis, C. and Preda, M in the Transition in nia: 9 Case Studies. Background paper for the Local Social Service Delivery Study. Tomova, I Bulgaria, 6 Case Studies, Background paper for the regional study on. Vasecka, M Literature Review of in the Czech Republic. Vitosha Research, Sociological and Beneficiary Assessment of Potential Low- Income Housing Microprojects. UNICEF and World Bank Vulnerability of Children in the Municipality of Shuto Orizari. UNICEF and World Bank, Vulnerability of Children in the Dispersed Communities in Skopje. World Bank, Bulgaria Poverty Assessment, Report No BG. Forthcoming in English and Bulgarian. World Bank, Foundation SPACE, INEKO, Open Society Institute, Poverty and Welfare of in the Slovak Republic. Published in English and Slovak. World Bank, nia: Local Social Services Delivery Study, Report No RO. Vols. 1 and 2. Published in English and nian. World Bank, 2001, Slovak Republic: Living Standards, Employment and Labor Market Study, Report No SK. Published in English and Slovak. World Bank, 2001, Alternative Schools and Education: A Review of Alternative Secondary School Models for the Education of Children in Hungary. World Bank Regional Office Hungary, NGO Study No. 3. Published in English and Hungarian. 8

9 Annex 2: Major Events World Festival, June 2002 and June The World Bank provided support from the Small Grants Program to this festival which brought together artists and experts from Europe, North and South America. Exhibit of Children s Art from the Village of Jarovnice, Slovakia, and Launch of the Report Poverty and Welfare of in the Slovak Republic. Held at the World Bank, Washington, DC, April Co-sponsored with the Embassy of the Slovak Republic. Launch of the Report Poverty and Welfare of in the Slovak Republic. Three seminars held in the Slovak Republic: Bratislava (with Parliamentarians); Presov (with NGO leaders and the media); and Poprad (with local government officials). April Conference on Projects in Hungary and Slovakia. Bratislava, April Cohosted with the Government of Slovakia and the Open Society Institute. Workshop on Poverty in Slovakia. Bratislava, April Co-hosted with the Institute for Economy and Social Reform and the Open Society Institute. Workshop on Projects in Hungary, Budapest. June This event involved Hungarian government officials, NGO leaders and academics to discuss the results of the review of projects in Hungary. Launch of the Regional Report on. Prague, November Hosted by the UN Information Center. The World Bank has also been represented at major regional conferences on convened by the Council of Europe, Open Society Institute, Organization for Security and Coordination in Europe, Save the Children, and the Albert Schweitzer Institute. 9

10 Annex 3: Projects Addressing Issues Table A3.1: Lending Operations Country Project Name Project ID IBRD/IDA Amount (mill.) Status Approval Date Albania Social Services Delivery P Active 6/7/2001 Bulgaria Social Investment and Employment P Under Preparation -- Bulgaria Child Welfare Reform P Active 3/6/2001 Bulgaria Regional Initiatives Fund P Closed 11/20/1998 nia Social Development Fund (02) P Active 12/20/2001 nia Social Development Fund P Active 2/16/1999 nia Child Welfare Reform P Active 6/25/1998 Slovakia Social Development Fund P Under Preparation -- Macedonia Children and Youth Development P Active 6/23/2001 Table A3.2: Grants Country Bulgaria Bulgaria Bulgaria Slovakia Project Name IDF Grant for Integration of Ethnic Minorities JSDF Grant for Child Development in Disadvantaged Communities JSDF Grant for Social Capital Building in Disadvantaged Communities IDF Grant for Capacity Building for the Office in Bratislava and Kosice Project ID Amount Status Approval Date TF ,280 Active 6/22/2000 TF ,050,000 Active 11/14/2000 TF ,000 Active 9/13/2001 TF ,000 Active 5/5/2000 Hungary, Bulgaria, nia, Slovakia Macedonia Development Grant Facility grant to the Autonomia Foundation (Pakiv Fund) Post-Conflict Grant: Promoting Interethnic Dialogue and Supporting the Learning Environment of Youth Affected by the Crisis ,000 (FY02); 300,000 (FY03) Active FY ,000,000 Closed FY99 10