Middle East and North Africa Regional Vice Presidency

The operations function of the World Bank has, in one form or another, been organized by geographic region throughout the Bank's history. The units responsible for World Bank lending and technical assistance have changed frequently in name and status since the Bank began operations in 1946. The history of the Middle East and North Africa Region (MNA) is complex primarily because of its previous integration with the Europe and Central Asia Region (ECA). Between 1965 and 1991, the countries within these two regions formed a single regional department/vice presidency called the Europe, Middle East and North Africa Region (EMN or EMENA). Since the termination of EMN and the creation of MNA in 1991, the area covered by MNA countries has remained constant. As of 2016, MNA countries include: Algeria; Bahrain; Djibouti; Egypt; Iran; Iraq; Jordan; Kuwait; Lebanon; Libya; Morocco; Oman; Qatar; Saudi Arabia; Syria; Tunisia; United Arab Emirates; West Bank and Gaza; and Yemen.

1946 - 1952

Upon the Bank's opening in 1946, operational lending was executed by the Loan Department (LOD) led by Charles C. Pineo. The LOD was responsible for developing loan operations policy, receiving and investigating loan inquiries, presenting loan inquiries to Bank management for consideration, and negotiating loans. The organizational structure of LOD fluctuated over its seven year history but was, for the majority of the time, organized geographically. The Bank's focus in these early years was on post-World War II reconstruction and, in particular, European countries. This is evident in the initial divisional organization of the LOD. Of the seven original divisions, four dealt with Europe and two with the Western Hemisphere. Middle Eastern countries were contained in the Asia and Middle East (AME) division.

With the appointment of W. A. Iliff as Director of the Loan Department in 1948, LOD's seven divisions were briefly consolidated into two: the European and United Kingdom Division and the Latin American, Asiatic and African Division. Then, in November of 1948, divisions were briefly abolished altogether, as loans were assigned to loan officers on an ad hoc basis. In 1950, LOD was again divided into three geographical areas: Asia and the Middle East Division; Latin America Division; and European Division.

Parallel to the LOD was the Economic Department (ECD), which conducted sector analysis and research work. Between 1946 and 1952, the ECD was responsible for both functional and geographic analyses, i.e. general economic studies and country specific studies. ECD supported the LOD and its loan administration and advised member countries on their economic and sector development plans. The ECD also liaised with international organizations on economic research. It also provided staff for Bank missions to countries from the Bank's Washington, DC headquarters to conduct both economic and project-focused research. Like the LOD, the organization of the ECD reflected the Bank's focus on post-war Europe. The Department initially consisted of threearea divisions and an Economic Technology Division responsible for specialized sector studies. In August 1948 a new organizational structure featuring two area divisions was installed. Area Division I was responsible for Europe and Area Division II was divided into four sections that dealt with: Africa and the Middle East; Central America; South America; and Asia. In March 1950 another reorganization divided the Department into an advisory staff and an area staff, the latter consisting of three divisions of which Asia and the Middle East Division was one.

While much of the Bank's initial focus was on reconstruction in Europe, many Middle Eastern countries sought out a relationship with the Bank in its early years. Egypt, Iraq, and Iran were all among the first signers of the Bank's Articles of Agreement in December 1945. The Bank made early survey missions to Egypt (March 1949), Iraq (May 1949), Iran (April 1950), and Syria (October 1950). (A subsequent economic mission to Iraq resulted in the publication of The Economic Development of Iraq in 1952.) Senior management also made trips to Middle Eastern countries early in the Bank's existence, including Vice President Robert L. Garner's 1949 trip that included stops in Iran, Egypt, Algeria, and Morocco, and President Eugene Black's 1953 trip to Egypt, Lebanon, Jordan, Iraq, Syria, Ethopia, and Turkey. In October of 1953 Dorsey Stephens was named the Bank's first Middle East Regional Representative. He was stationed in Beirut, Lebanon.

While interest in the region's economic development was evident, actual investment in the region was relatively slow in coming. Iran submitted a loan application to the Bank in October 1946, making it one of the first countries to do so; the proposal was not approved, however. The first loan in the region was to Iraq in 1950 for a flood control project: Wadi Tharthar Flood Control Project [P005231] First loans to Algeria (Electric Power Development Project [P004872]) in 1955, Iran (Seven Year Development Plan Project [P005175]) in 1957, and Egypt (Suez Canal Development Project [P004982]) in 1959 followed. While not a matter of financial investment, Eugene Black's efforts, beginning in 1951, to help mediate the dispute between Iran and Great Britain regarding the nationalization of the Iranian oil industry was a marker of significant interest in the region. Under Black's leadership, the Bank was also involved in negotiations related to the proposed Aswan Dam in Egypt in 1956.

1952 - 1972

When the World Bank opened, its primary focus had been the reconstruction and revitalization of European countries devastated by World War II. However, as other sources of investment became available to war-torn European countries, the Bank quickly shifted its focus to non-European countries. Largely due to the resulting expansion in operations in Latin America, Africa, and Asia, a Bank-wide reorganization took effect in September of 1952. The new operational structure endured for the next twenty years. The major feature of the reorganization was the merging of LOD staff with country-related staff from the ECD to form three distinct geographical Area Departments: Europe, Africa and Australasia (EAA); Asia and Middle East (AME); and Western Hemisphere (WHM). These units were responsible for World Bank-member country relations. Functions included: loan policy and plan development; country development program appraisal and review; preparation of proposed loans; and country economic monitoring.

The Asia and Middle East (AME) Area Department was divided into four divisions. The Department was initially led by Joseph Rucinski. He was, soon after, replaced by Francois Didier-Griegh in 1953. Rucinski returned to the post in 1955. All Area Departments reported to Vice President Robert Garner from 1952 to 1956. After Garner became President of the new International Finance Corporation (IFC) in 1956, the Area Departments reported to J. Burke Knapp and William Iliff.

As part of the 1952 reorganization, the sector-oriented staff of the former ECD moved to the Technical Operations Department (TOD) in the new Area Departments and was placed in charge of project appraisal and supervision. Specifically, the TOD was responsible for: the appraisal of proposed projects; advising Area Departments on proposed projects and assisting in negotiations; supervising approved projects; assisting borrowers in procurement efforts; and monitoring and reporting on member countries' sector economies.

As a result of growing country membership in the AME, the unit was divided into two separate departments in 1957: the South Asia and Middle East Department (SME) and the Far East Department (FEA). Joseph Rucinski led the new SME until January 1962. Following an eight month stint by Geoffrey Wilson, Escott Read was named SME Director in September 1962. As of July 1963, the countries located in SME included: Afghanistan; India; Iran; Iraq; Israel; Jordan; Kuwait; Lebanon, Nepal; Pakistan; Saudi Arabia; Syria; and United Arab Republic (Egypt). Matters related to the Bank's involvement in the Indus Basin agreement negotiation were also managed out of SME.

In 1962 the Tunisian government requested the establishment of a Bank-sponsored consortium focused on pledging amounts of aid that could be provided by donor members. The Bank and aid-providing country members recommended forming a consultative group as a forum to exchange information on Tunisia's economic development and its capacity to service additional external debt, discuss the potential assistance of donors, and help ensure effective use of foreign aid towards high-priorityprojects. The Tunisia Consultative Group was convened in May 1962.

Most of the functions involved in the operation of a consultative group were already carried out by Bank department staff in its relations with countries, however they would perform these functions "more intensively or more frequently" when sponsoring groups. The operations of the groups varied according to their different circumstances but in most cases the Bank's responsibilities were, as outlined in 1965: providing periodic, comprehensive reports on the country's development possibilities, problems, and performance as a basis for the consultative group's deliberations; analyzing the country's aid requirements and problematic debt commitments, and recommending types and terms of aid; assisting the recipient government to prepare or revise a development program or advise on problems in its implementation; assisting in identifying projects and other technical assistance and arranging for feasibility studies; and advising participants on which sectors and projects deserve priority for external funding. The role of the group's chairman, typically the Bank's Area or Country Director, encouraged dialogue at meetings and coordinated donor efforts to meet the country's financing needs. The department also drafted the minutes or summary of proceedings and the list of delegates of group meetings. These functions essentially remained unchanged through 1999.

In 1965 the World Bank implemented a major reorganization of country groupings in its regional departments and SME was significantly impacted. The countries previously located in SME were dispersed, with South Asian countries constituting a new independent South Asia Department (SAS) and Middle Eastern countries combined with Europe countries to form the new Europe and Middle East Department (EME). In addition, five northern African countries (Egypt, Libya, Algeria, Tunisia, and Morocco) were also included in EME. Functional responsibilities of the new EME remained unchanged from predecessor departments. Sydney Cope served as Director of EME.

The new combination of European and Middle Eastern countries was briefly undone in 1967 when EME was divided into two separate departments: Europe Department (EUR); and Middle East and North Africa Department (MNA). Michael L. Lejeune led the MNA during this period. European, Middle Eastern, and North African countries were again reunited during a significant reorganization in 1968, forming the new Europe, Middle East and North Africa Department (EMN). Thus began an uninterrupted period of 23 years during which Middle Eastern and North African countries would be combined with European countries in a single department or Vice Presidency. The new EMN was led by Michael L. Lejeune; he was replaced by Munir P. Benjenk in 1970. The Department was initially divided into five divisions roughly based on geography. European countries roughly made up two divisions while Middle Eastern and North African countries formed the other three.

1972 - 1987

A massive, Bank-wide reorganization was initiated by World Bank President Robert S. McNamara in 1972. As part of the reorganization, the geographic organization of the regional units was again altered. The seven Area Departments were elevated to five Regional Vice Presidencies (RVP). However, the composition of EMN was not altered. All RVPs reported to the new Senior Vice President, Operations (SVPOP).

A more significant aspect of the reorganization, however, was the integration of the former Technical Operations Department (renamed the Projects Division [PRJ] in 1965) with the new RVPs. The period between 1952 and 1972 had been characterized by frequent reorganizations of the geographically-based area units responsible for country liaison and loan policy and negotiation. However, the division of functional responsibility between these units and TOD/PRJ was maintained. But in 1972, in an attempt to more effectively fuse country knowledge and sectoral skills, most of the Bank's operational project work was moved from the Projects Department to the five new Regional Vice Presidencies. Staff from the former PRJ was distributed into the Regional Vice Presidencies and organized into sector-oriented Project Departments known as Central Projects Staff. Thus, rather than one Projects Department that supported projects in countries on an ad hoc basis, each RVP would maintain its own projects staff. Each RVP was, in turn, given "line authority" to analyze, decide and act on country development operations. Each RVP was responsible for planning and executing development assistance programs subject to the overall framework of Bank policies, priorities, and operating procedures. The RVPs created regional plans and budgets, ensured the effective implementation of approved plans, created country economic and sector reports, and developed and implemented loan, credit, technical assistance, and other forms of development projects. The RVPs were also responsible for maintaining sound relations with governments of assigned countries and with aid organizations and donors involved in those countries.

Upon the completion of the 1972 reorganization, EMN consisted of two Country Program Departments in addition to the new Projects Department. The Country Program Departments were staffed by country economists and loan officers whose primary responsibilities were: conducting area reviews of Bank activities and countries' economic and political developments; formulating country lending and economic and sector work programs and implementing country programs; and reviewing loan applications, negotiating loans, and administering loans.

The Projects Department provided technical assistance and advice to members and borrowers on sectoral issues, country priorities, and project development from identification through implementation and review. It consisted of economists, financial analysts, and sector specialists, and was specifically responsible for: creating sector policies; assisting countries with the identification and preparation of projects; appraising potential projects; assisting the Country Program Departments in loan negotiation and credit agreements; and helping borrowers manage consultants and procurement.

EMN's Project Department was initially divided into five sector-based divisions: Agriculture; Education; Public Utilities; Transportation; and Development Finance Companies. Over the next fifteen years, new divisions were created for sectors such as energy, water, telecommunications, industry, finance, and urban.

Note that not all staff and operational responsibilities were transferred from the former PRJ to the RVPs. Staff in sectors too small to decentralize to the five regions continued to provide a complete "operational package" of technical services to the regions. These units, such as the Population and Nutrition sector and Urban Projects sector, were known as Central Operating Projects Departments and were located in the newly formed Vice President, Central Projects (CPSVP) which, like the RVPs, reported to the SVPOP. In addition, those former PRJ units which had their operational functions dispersed to the RVPs still maintained a core staff in the CPSVP with responsibility for policy and advisory work only.

When EMN became a Vice Presidency in 1972, it contained the following countries: Afghanistan, Egypt, Iraq, Saudi Arabia, Iran, Denmark, Finland, Iceland, Italy, Norway, United Kingdom and African Dependencies, Yugoslavia, Austria, Bahrain, Belgium France, Ireland, Jordan, Luxembourg, Netherlands, Portugal, Qatar, South Africa, Spain, United Arab Emirates, People's Democratic Republic of Yemen, Turkey, Algeria, Libya, Morocco, Greece, Israel, Tunisia, Cyprus, Lebanon, Malta, Oman, Syria, and Yemen Arab Republic. EMN's first Vice President was Munir P. Benjenk. Benjenk served in this position from 1972 through 1980 with the exception of a ten month period between 1975 and 1976 when Willi A. Wapenhans took over. Roger Chaufournier was named EMN Vice President in 1980 and Wapenhans once again assumed the position in 1984.

1987 - 1991

While the composition of the Country Program Departments and Projects Department changed between 1972 and 1987 (most notably with a considerable increase in the number of sector divisions within the Projects Department), the organization and functions of the RVPs was consistent until 1987. In July of 1987, however, a Bank-wide reorganization under President Barber Conable altered the structure of the RVPs considerably. The changes were brought on by a desire to strengthen the Bank's country focus by making the CountryDepartment the basic program and budget unit.

The new Country Departments that replaced the Country Program Departments combined the macro-economic work of the former Country Program Departments and the sector work of the former Regional Projects Department. Each Country Department would consist of a Country Operations Division (COD) as well as multiple Sectoral Operations Divisions (SOD) made up of staff from the former Regional Projects Departments. The COD was composed of lead, country, and specialized economists as well as country officers and was responsible for: liaising with state governments and developing knowledge of issues in the country; preparing and supervising the country's aid strategy; and providing full responsibility for certain country-wide operations such as Structural Adjustment Loans (SALs) and country economic work. SODs were responsible for overall sectoral strategy and for planning, programming and implementing development activities for the countries in their respective sectoral specialties; this would include the provision of full lending project management as well as lending and sector evaluation work.

Not all staff was moved from each Region's Project Department into the Country Departments' SODs. Those remaining formed a new Regional Technical Department within each RVP. It was responsible for higher level knowledge collection, assessment, and dissemination. The Technical Department, which was organized into sector-focused divisions, worked to stimulate innovation in operational work and undertake strategic thinking by providing advice, operational support, regional studies, staff training and the dissemination of materials to Bank staff, donors, and other institutions outside the Bank. The Department would continue to offer operational help in the form of task management, task support, and advice. They would also work closely with Policy, Planning and Research (PPR) staff in conducting regional studies and reviews, and advising on sector policy and research priorities.

During the 1987 reorganization the number of RVPs decreased from six to four but EMN was not affected in this regard. The number of EMN Country Departments did, however, increase from two to four. The allocation of countries between departments during this period and the sector-oriented divisions comprising the country departments changed over time to reflect changing priorities in the region's operations. EMN was led by Vice President Wilfried P. Thalwitz from 1987 to 1989 and Willi A. Wapenhans from 1990 to 1991.

1991 - 1996

The fall of the Soviet Union and the end of the Cold War had significant implications for the World Bank and its organization. As a result of the large number of new country members, a reorganization of the Bank's regional vice presidencies and a reallocation of countries was deemed necessary. In 1991 the Europe, Middle East, and North Africa Regional Vice Presidency (EMN) was divided into two new RVPs: the Middle East and North Africa Vice Presidency (MNA) and the Europe and Central AsiaVice Presidency (ECA). (During this reorganization the Asia Regional Vice Presidency [ASI] was also divided into separate east and south Regional Vice Presidencies, increasing the number of RVPs from four to six). The new MNA maintained the same functions and internal organization as its predecessor unit. Note, however, that MNA and ECA continued to share a single Technical Department. Composed of various sector-oriented divisions, the Technical Department maintained responsibility for sector knowledge dissemination, research and development, and operational review and advice.

A subsequent reorganization in 1993 strengthened the Country Departments' SODs through unit reorganization and a transfer of staff from the Regional Technical Departments to the SODs. The Technical Departments were greatly reduced in size and were restructured to reflect the emphasis on sectoral and thematic responsibilities of the SODs. The Technical Departments operational support function was consequently reduced.

Caio Koch-Weser became MNA Vice President in 1991. He was replaced by Kermal Davis in 1995.

1996 - 2014

Another reorganization in 1996-98 modified the changes made to the RVPs in 1987 and 1993. The RVP continued to be responsible for all aspects of country development assistance for its member countries, including: country assistance strategy; lending operations; technical assistance operations; and economic and sector work. The primary objective of the reorganization was to deepen the country focus and responsivenessto client needs. This was accomplished in a number of ways. The most striking changes concerned the new Country Management Units (CMUs) which replaced the former Country Departments. The CMUs were smaller than their predecessor (that is, each was responsible for a smaller number of countries) while their number correspondingly increased. The internal reorganization of MNA resulted in an increase of two Country Departments to four Country Management Units.

In addition, an increased decentralization of CMU staff and country directors from Bank headquarters in Washington to locations within client countries was undertaken. At the same time, a strengthening of authority with regard to strategy and budget was given to the country directors. The CMUs continued to be responsible for overall preparation and supervision of the country's assistance strategy, full lending project management, and evaluation of lending and sector work.

During the reorganization, the former Technical Departments were changed into Sector or Technical Families. The role of the Technical Families, which consisted of sector and project economists and selected specialist staff, was to formulate knowledge on technical subjects and best practice, and to suggest innovation through research and development. From this point on, MNA ceased sharing its technical units with ECA.

Kemal Davis continued to serve as MNA Vice President until May 2000 when Jean-Louis Sarbib assumed the position. He was succeeded by: Christiaan J. Foortman (2003-2006); Daniela Gressani (2006-2009); Shamshad Akhtar (2009-2011); and Inger Andersen (2011-2014).

An important series of World Bank reports discussing economic prospects in the Middle East was introduced in 2005. The series, titled Middle East and North Africa (MENA) Economic Developments and Prospects Reports, was published annually. Its initial release was titled Oil Booms and Revenue Management followed, in 2006, by Financial Markets in a New Age of Oil.

2014 - Present

To stimulate the sharing of knowledge and best practices across the Bank, President Jim Kim introduced a Bank-wide reorganization in 2014 that removed sector staff from the Regional Vice Presidencies and placed them in one of fourteen Global Practices (GPs) or five Cross-Cutting Solution Areas (CCSAs). The GPs are responsible for each of the major thematic areas that the Bank supports through projects, such as agriculture, water, and education. Each GP functions as a vertical pillar of technical expertise and is responsible for: defining the strategic direction and the World Bank's activity in their respective sector; developing and deploying expertise globally; delivering integrated solutions to client countries; and capturing and leveraging knowledge in their respective fields. The CCSAs, on the other hand, serve as units that cut across GPs horizontallyproviding leadership in areas such as climate change, gender, and public-private partnerships, and focusing on Bank-wide strategic goals and directions.

After the 2014 reorganization, the Regional Vice Presidencies exclusive function became overall client engagement. Specifically, each RVP: sets and drives regional strategic direction; offers development solutions to clients; agrees on work program and budget with GPs; recruits expert GP staff to meet client needs; manages corporate and other stakeholder relationships; and oversees country programs. Each RVP retained multiple Country Management Units (CMUs) responsible for one or more countries. The CMU is the primary interface with the country and is responsible for ensuring global solutions are applied to the local context. Specifically, the CMU: identifies client challenges and opportunities; sets country strategy and manages selectivity; develops work programs and provides solutions; manages client and stakeholder relationships; and manages the country office.

Hafez Ghanem replaced Inger Andersen as MNA Vice President in November of 2014. Ferid Belhaj replaced Ghanem in May of 2018.