Interim strategy note This strategy aims to support Iraq's reconstruction and development to the extent possible during the current interim period. Resolution of the legal status of Iraq's government is required for the Bank to provide its full range of services; and the security situation in Iraq prevents the Bank from sending staff to the country at this time. Satisfactory resolution of the above issues as well as the settlement of Iraq's arrears to the Bank are prerequisites for IDA and/or IBRD lending to Iraq. However resources from the ITF are expected to become available in early 2004. For planning purposes the Bank is currently working under the assumption that it may not be possible for staff to travel safely into Iraq through the period covered by this strategy. However the Bank is building flexibility into its strategy to act rapidly if the situation improves. Given the evolving situation in Iraq the Bank will focus on an incremental approach based on the Needs Assessment and on what practically can be done. The Bank Group's interim work program represents a range of potential interventions that will be pursued to the extent allowed by the evolving situation. To this end the Bank's immediate objectives will be to: (i) Build Iraqi institutional capacity especially to establish mechanisms of transparency and accountability urgently needed for implementing the large amounts of external funding needed for Iraq's reconstruction. (ii) To the extent possible under the circumstances prepare and start implementing emergency operations to address urgent needs: generate employment / kick-start economic activity; and restore essential infrastructure and services. (iii) Lay the groundwork for Iraq's medium-term reconstruction and development program and begin assisting in the transition from central planning to market economics through policy advice and analytical work.