Review of the 2011-2014 Bhutan Country Partnership Strategy (CPS) and the CPS Progress Report (CPSPR)
This review examines the implementation of the FY2011-FY2014 Bhutan Country Partnership Strategy (CPS) of FY2011and the CPS Progress Report (CPSPR) of FY2013, and assesses the CPS Completion Report (CPSCR). The CPS was jointly implemented by IDA and IFC; this review covers the joint program of the... Full Description »
This review examines the implementation of the FY2011-FY2014 Bhutan Country Partnership Strategy (CPS) of FY2011and the CPS Progress Report (CPSPR) of FY2013, and assesses the CPS Completion Report (CPSCR). The CPS was jointly implemented by IDA and IFC; this review covers the joint program of the two institutions. The CPS was aligned with Bhutan's development strategies and program and covered four results clusters, (1) Private Sector Development; (2) Employment and Skills Development; (3) Sustainable Urban-Rural Development; and (4) Access to Quality Public Services. IEG rates the overall outcome of WBG support as Moderately Satisfactory. Under the first Cluster, the time it takes to start a business and obtain project approval, was reduced sharply for priority sectors along with simplification of business licensing and an electronic inventory of licenses. However, other obstacles in the investment climate remained in place; for example, new licensing, public-private partnership, and financial inclusion policies were formulated but yet to be adopted. Access to credit was increased; a financial literacy campaign was carried out; payments, settlement, and clearing systems were modernized, while bank lending flowed to real estate and consumption rather than to productive investments, ending in a credit freeze and an increase in nonperforming loans. In the financial sector, IFC provided advisory services and training and made a large equity investment, but fell short in leveraging private sector participation and improving efficiency of, and access to, financial services. Under Cluster 2, skills and training initiatives piloted with the private sector that were relevant to industry needs, marked a significant beginning to reducing urban youth unemployment. However, these are preliminary results pending a deeper study of the labor market and disincentives to youth taking up training. Under Cluster 3, urban works were delayed with variable achievement of targets; improved tax systems were introduced, but implementation of targeted revenues was yet to take place. Farm roads, irrigation, extension, sustainable land management and school expansion made a major contribution to reducing rural poverty, but improved beneficiary coverage could not be achieved as envisaged in community water supply and sanitation. Under Cluster 4, public budgeting and monitoring systems were modernized, and service standards were established for public services, but these were yet to address the issues of equity and efficiency reflected in the analytic work in education, health, and nutrition. Contributions in higher education were limited to a policy note in the absence of a project as envisaged, and national awareness of issues and policy options in nutrition was raised through analytic work; implementation of follow-up policy actions is reported as since having begun. The CPSCR highlights as lessons, (i) the importance of budget support for dialogue and reform; (ii) the need for realism in the results framework; (iii) clearer identification of capacity constraints; (iv) careful choice between lending or Analytic and Advisory Activities (AAA) driven by realistic results expectations; (v) policy dialogue or technical assistance to follow up after completed projects; and (vi) building on the Bank's comparative advantage in Bhutan's transition. IEG agrees and notes that (a) program results would be improved by clarity on the effects of hydropower construction in the medium-term; (b) an analysis of the financial sector's structural constraints; and (c) greater realism in addressing constraints in private sector development.
Content Type : Reports , Doc Sub Category : CAS Completion Report Reviews , Country : Bhutan
September 12, 2014
Bhutan: Country Assistance Evaluation
This evaluation provides an independent assessment of the role of World Bank assistance to Bhutan during the period 1993–2003. The Country Assistance Evaluation (CAE) examines whether: (a) the objectives of Bank/IDA assistance were relevant; (b) the Bank's assistance program was effectively... Full Description »
This evaluation provides an independent assessment of the role of World Bank assistance to Bhutan during the period 1993–2003. The Country Assistance Evaluation (CAE) examines whether: (a) the objectives of Bank/IDA assistance were relevant; (b) the Bank's assistance program was effectively designed and consistent with its objectives; and (c) the Bank's program achieved its objectives and had a substantial impact on the country's development during this period. Examining these questions allows the CAE to draw lessons and recommendations for future Bank assistance. Annex D describes the methodological approach.
Content Type : Reports , Doc Sub Category : Country Program Evaluations , Country : Bhutan
November 23, 2004