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Maximizing the Impact of Development Policy Financing in IDA Countries: A Stocktaking of Success Factors and Risks - An IEG Meso Evaluation

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Development policy financing (DPF) has evolved from supporting structural adjustment programs in the 1980s and 1990s to supporting the achievement of the Millennium Development Goals (MDGs) in the 2000s. It has been considered by multilateral and bilateral donors as one of the instruments that would best enable the realization of the Paris Declaration on Aid Effectiveness. However, the use of Show MoreDevelopment policy financing (DPF) has evolved from supporting structural adjustment programs in the 1980s and 1990s to supporting the achievement of the Millennium Development Goals (MDGs) in the 2000s. It has been considered by multilateral and bilateral donors as one of the instruments that would best enable the realization of the Paris Declaration on Aid Effectiveness. However, the use of budget support as a preferred aid modality has been diminishing, especially among European member states. This evaluation is expected to inform decisions on the use of Development Policy Financing (DPF) in IDA countries by providing evaluative insights into drivers of success and risks. This is pertinent in the context of the record replenishment for IDA18 in the face of a declining share of DPF in IDA commitments during the last three IDA cycles. In this context, it is worthwhile to examine the factors that have driven DPF success in the past so as to inform decisions on the role of this development financing instrument in IDA countries going forward.

Poland CLR Review FY14-17

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Poland is a high-income country (HIC) with a GNI per capita of $12,680 in 2016. Poland’s annual economic growth accelerated to 3.3 percent during the CPS period (2014-2016) from 2.9 percent over the previous four years, 2010-13. The consistency of the country’s macro and structural policies has been the key driver behind the economy’s growth and helped its transition to HIC status in less than 15 Show MorePoland is a high-income country (HIC) with a GNI per capita of $12,680 in 2016. Poland’s annual economic growth accelerated to 3.3 percent during the CPS period (2014-2016) from 2.9 percent over the previous four years, 2010-13. The consistency of the country’s macro and structural policies has been the key driver behind the economy’s growth and helped its transition to HIC status in less than 15 years. Poland’s economic growth has been inclusive in the past decade, as evidenced by growing employment and earnings for all income groups, which led to a substantial reduction in poverty and stronger-than-average growth of the bottom 40 percent of the distribution. Between 2005 and 2014, Poland’s Gini coefficient fell from 0.351 to 0.343. The poverty rate measured at $5.00/day 2005 PPP stood at 4.4 percent in 2015. Poland’s strong economic growth is expected to continue in the near term; however, the longer- term prospects could be subdued by demographic and structural challenges – including a rapidly aging population, slowdown in total factor productivity, infrastructure gaps, low domestic private investment and regional disparities -- if left unaddressed.

Philippines: Support for Basic Education Reform, 2006-12

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The Philippines is a lower-middle-income country with a gross national income of $3,550 per capita and an estimated population of 101.6 million in 2015. Economic growth has increased substantially in recent years. The longest period of sustained economic growth in recent history was between 2012 and 2016. Despite this growth, poverty and inequality remain high and persistent. Priority for reform Show MoreThe Philippines is a lower-middle-income country with a gross national income of $3,550 per capita and an estimated population of 101.6 million in 2015. Economic growth has increased substantially in recent years. The longest period of sustained economic growth in recent history was between 2012 and 2016. Despite this growth, poverty and inequality remain high and persistent. Priority for reform of the education sector has shifted through the years from access to quality. This assessment examines two such education quality projects in the mid-2000s, assessing both projects together because they were designed jointly to support the government’s education strategy. The National Program Support for Basic Education’s (NPSBE) objective was “to improve quality and equity in learning outcomes for all Filipinos in basic education.” The Support for Basic Education Sector Reform Project’s (SPHERE) objective was “to support the implementation of the Philippine government’s Basic Education Sector Reform Agenda (BESRA) which in turn aims to contribute to the achievement of the Philippines’ basic education goal of improving quality and equity in learning outcomes.” Relevance of the objectives is rated substantial for both projects. The projects’ objectives aligned well with government and World Bank strategy at appraisal and closing. However, project documents also reference intended efficiency outcomes that were not specified as part of the formal objectives. Relevance of design is rated modest for both projects. Both projects’ stated development objectives supported improvements in quality and equity of learning outcomes, yet the equity objective was not well defined, and the components and activities were oriented toward access and quality with an unclear theory of change that would have related project interventions to equity outcomes.

IEG Work Program and Budget (FY19) and Indicative Plan (FY20-21)

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The Work Program outlines the strategic framework IEG has put in place to align its work program with the WBG and its clients’ main strategic priorities; its proposed work program for FY19-21; the results and impact that IEG expects to achieve over that period; measures IEG has been implementing to increase its outreach and impact; and details on resource management. Strategic Directions for FY19 Show MoreThe Work Program outlines the strategic framework IEG has put in place to align its work program with the WBG and its clients’ main strategic priorities; its proposed work program for FY19-21; the results and impact that IEG expects to achieve over that period; measures IEG has been implementing to increase its outreach and impact; and details on resource management. Strategic Directions for FY19–21 IEG’s strategic directions in FY19–21 are aligned with strategic priorities of the World Bank Group (WBG), as set out in the Forward Look (FL), the IDA18 agreement, the Maximizing Finance for Development (MFD) Development Committee Paper, and other strategic documents, as well as its twin goals in a sustainable manner, and with the development challenges expected to affect its clients over the period. Independent evaluation is essential to help the WBG tackle these important challenges and IEG has aligned its strategic framework with that of the WBG to continue providing a systematic and coherent body of evidence in key relevant areas.

Georgia CLR Review FY14-17

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This review of the Georgia Completion and Learning Report of the World Bank Group (WBG) Country Partnership Strategy (CPS) covers the CPS period, FY14-FY17, including the CPS Performance and Learning Review (PLR) of April 2017. Georgia is a lower-middle-income country with a GDP per capita of 3,866 dollars (2016).Its economy grew on average by 3.5 percent annually during the review period higher Show MoreThis review of the Georgia Completion and Learning Report of the World Bank Group (WBG) Country Partnership Strategy (CPS) covers the CPS period, FY14-FY17, including the CPS Performance and Learning Review (PLR) of April 2017. Georgia is a lower-middle-income country with a GDP per capita of 3,866 dollars (2016).Its economy grew on average by 3.5 percent annually during the review period higher than the 1.9 percent average for the ECA region—with persistently large external current account deficits in the 12-13 percent of GDP range financed mostly by foreign direct investments. The CPS corresponded well with the government's stated development objectives set out in the Socioeconomic Development Strategy 2020, which had as overarching aim to achieve faster, inclusive, and sustainable growth averaging 7 percent annually. The WBG's country program pursued two strategic objectives or focus areas of strengthening public service delivery to promote inclusive growth and enabling private-sector-led job creation through improved competitiveness. The areas selected were congruent with the country's development goals, and in sectors where it had shown capacity to deliver in the past. IEG adds the following lesson: Competitiveness and labor market issues are key binding constraints for Georgia's growth, and areas in which the Bank has comparative advantage. Yet, the Bank failed to address them adequately and effectively under this CPS. To maximize development effectiveness, the Bank should not miss opportunities to address effectively areas which are both significant binding constraints for country growth and in the domain of the Bank's comparative advantage.

IFC's Experience with Inclusive Business - An IEG Meso Evaluation

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This evaluation is a corporate-level assessment of the role and effectiveness of IFC in its support to its clients’ inclusive business models. It also identifies implications and options for IFC’s future support to inclusive business. The evaluation uses a two-pronged approach based on: (i) a review of IFC’s entire portfolio (comparing inclusive business projects with the rest of IFC’s portfolio Show MoreThis evaluation is a corporate-level assessment of the role and effectiveness of IFC in its support to its clients’ inclusive business models. It also identifies implications and options for IFC’s future support to inclusive business. The evaluation uses a two-pronged approach based on: (i) a review of IFC’s entire portfolio (comparing inclusive business projects with the rest of IFC’s portfolio), integrating IEG’s relevant evaluative evidence across different sectors and themes; and (ii) a focus on the agribusiness sector.

Public Finance for Development Evaluation (Approach Paper)

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Sound public finance policies, institutions and outcomes are critical for making fast and sustained progress toward theWorld Bank Group’s twin goals of eradicating extreme poverty and promoting shared prosperity. Public finance encompasses the overall fiscal stance of the government, how governments collect revenues and manage expenditures, and the institutions that enable those outcomes. This Show MoreSound public finance policies, institutions and outcomes are critical for making fast and sustained progress toward theWorld Bank Group’s twin goals of eradicating extreme poverty and promoting shared prosperity. Public finance encompasses the overall fiscal stance of the government, how governments collect revenues and manage expenditures, and the institutions that enable those outcomes. This evaluation aims at assessing the development effectiveness of World Bank activities in public finance support during the period FY08–17, ranging from analytical work to financing and the use of the World Bank’s convening power. The evaluation is meant to contribute to the two primary purposes of evaluation at the World Bank: to promote accountability for delivering on the World Bank’s mandate through the assessment of performance and results in the area of public finance; and to promote learning within the World Bank and with its clients to inform the design and implementation of future interventions in an area that is of high and arguably growing importance for achieving improved development outcomes.

Lao People's Democratic Republic: Sustainable Forestry for Rural Development Project (PPAR)

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Ratings for the Sustainable Forestry for Rural Development Project are as follows: Outcome is moderately unsatisfactory, Risk to development outcome is high, Bank performance is moderately unsatisfactory, and Borrow performance is moderately unsatisfactory. Lessons from the project include: (i) A pattern of weak government commitment to increasing citizen’s natural resource rights exists in Lao Show MoreRatings for the Sustainable Forestry for Rural Development Project are as follows: Outcome is moderately unsatisfactory, Risk to development outcome is high, Bank performance is moderately unsatisfactory, and Borrow performance is moderately unsatisfactory. Lessons from the project include: (i) A pattern of weak government commitment to increasing citizen’s natural resource rights exists in Lao PDR. (ii) Villagers who are denied secure community tenure and rights to forest resources are unlikely to commit to sustainable forest management. (iii) The zoning of natural forest may fail to reflect variations in the richness of the resource, so the area earmarked for sustainable management may be unrealistically large, stretching administrative resources too thin. (iv) Zoning and the preparation of management plans for specific forest tracts are important first steps but they are not, in themselves, sufficient evidence that sustainable forest management is being implemented.

Lao People's Democratic Republic: Sustainable Forestry for Rural Development Project (PPAR)

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Ratings for the Sustainable Forestry for Rural Development Project are as follows: Outcome is moderately unsatisfactory, Risk to development outcome is high, Bank performance is moderately unsatisfactory, and Borrow performance is moderately unsatisfactory. Lessons from the project include: (i) A pattern of weak government commitment to increasing citizen’s natural resource rights exists in Lao Show MoreRatings for the Sustainable Forestry for Rural Development Project are as follows: Outcome is moderately unsatisfactory, Risk to development outcome is high, Bank performance is moderately unsatisfactory, and Borrow performance is moderately unsatisfactory. Lessons from the project include: (i) A pattern of weak government commitment to increasing citizen’s natural resource rights exists in Lao PDR. (ii) Villagers who are denied secure community tenure and rights to forest resources are unlikely to commit to sustainable forest management. (iii) The zoning of natural forest may fail to reflect variations in the richness of the resource, so the area earmarked for sustainable management may be unrealistically large, stretching administrative resources too thin. (iv) Zoning and the preparation of management plans for specific forest tracts are important first steps but they are not, in themselves, sufficient evidence that sustainable forest management is being implemented.

Results and Performance of the World Bank Group (RAP) 2017

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results and performance of world bank group, rap 2017
This year's report focuses on selected questions related to the contribution of the WBG to environmental sustainability.This year's report focuses on selected questions related to the contribution of the WBG to environmental sustainability.