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Topic:Governance
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Social Contracts and World Bank Country Engagements: Lessons from Emerging Practices

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Social Contracts and World Bank Country Engagements Lessons from Emerging Practices
The objective of this evaluation is to take stock of social contract knowledge to assess the World Bank’s role in helping countries reshape their social contracts, especially through the integration of social contract diagnostics into country engagements.The objective of this evaluation is to take stock of social contract knowledge to assess the World Bank’s role in helping countries reshape their social contracts, especially through the integration of social contract diagnostics into country engagements.

Jamaica Economic Stabilization and Foundations for Growth Development Policy Loan (DPL) (PPAR)

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This Project Performance Assessment Report (PPAR) reviews the Economic Stabilization and Foundations for Growth Development Policy Loan (DPL), approved on December 12, 2013. The objectives of the operation were to improve (i) the investment climate and competitiveness, and (ii) public financial management for sustainable fiscal consolidation. Objectives were highly relevant to country Show MoreThis Project Performance Assessment Report (PPAR) reviews the Economic Stabilization and Foundations for Growth Development Policy Loan (DPL), approved on December 12, 2013. The objectives of the operation were to improve (i) the investment climate and competitiveness, and (ii) public financial management for sustainable fiscal consolidation. Objectives were highly relevant to country conditions and the need to avoid fiscal insolvency and begin implementing a comprehensive program of stabilization and reform. They were closely aligned with the World Bank’s strategy and government priorities. The design of the operation was substantially relevant to challenges, with policy priorities identified based on significant analytical work and nonlending technical assistance. The theory of change was convincing, with clear links among inputs, outputs, and expected results, although some indicators could have been more outcome oriented and clearer in their relation to objectives. One shortcoming of the design was the ambitious time frame for the implementation of some of the reforms related to investment climate and pensions, given the limited institutional capacity and a realistic assessment of the time needed for major legal reforms. Achievement of both objectives is rated substantial. Under the investment climate objective, reforms targeted improvements in contract enforcement, approval of building permits, and registration of micro, small, and medium enterprises to encourage their participation in the formal sector. Under the public financial management and fiscal consolidation objective, the program targeted progress on pension reform, tax reform, civil service reform, cash management, and public investment management. The impact of all reform actions was measured relative to specific indicator targets, which were substantially achieved or exceeded. These achievements were confirmed by additional quantitative indicators, qualitative gauges, and international benchmarking data. Some reforms, such as those in investment climate and pension reform, took longer than originally envisioned, but they proceeded and deepened over time. Cumulative evidence suggests that the reforms supported by the operation have been sustained and, in several areas, deepened during the past six years. This is reflected in the new development policy financing series supported by the World Bank and the International Monetary Fund Stand-By Arrangement that followed the successful conclusion of the three-year arrangement under the International Monetary Fund’s Extended Funding Facility.

Changes in Carbon Markets and Regulatory Systems from Kyoto to Paris and How the World Bank Group Responded to these Changes (Working Paper)

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This study provides a structured review of the existing literature on changes in international market mechanisms for greenhouse gas reductions and related regulatory systems. The assessment period 1997 to 2016 starts with the signing of the Kyoto Protocol and ends with the entry into force of the Paris Agreement. It can be differentiated into a period of emergence of market mechanisms until 2005 Show MoreThis study provides a structured review of the existing literature on changes in international market mechanisms for greenhouse gas reductions and related regulatory systems. The assessment period 1997 to 2016 starts with the signing of the Kyoto Protocol and ends with the entry into force of the Paris Agreement. It can be differentiated into a period of emergence of market mechanisms until 2005, a gold rush from 2006 to 2011, a fragmentation of markets lasting until 2015, and a brief post-Paris period of relaunch, of a new climate policy agreement. A key aspect of the review is how the World Bank Group responded to changes. The review includes about 300 peer-reviewed articles and about 40 articles from gray literature coming from highly-reputed sources. A large share of the literature examined covers the flexible mechanisms of the Kyoto Protocol with a strong focus on the Clean Development Mechanism (CDM). This is a consequence of the unexpected success of the CDM in the carbon market, at least until 2011–12, as well as the transparency of the mechanism that has facilitated research. As topics and issues related to the international carbon market emerged, the Bank Group tried to address them, focusing on developing countries to enhance their participation in the market. However, there is only limited peer-reviewed literature that assesses the Bank Group strategies and operations. Key changes in markets and regulatory frameworks as well as the responses of the Bank Group can be grouped into four main periods that are briefly discussed below.

Burundi CLR Review FY13-16

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This review of the World Bank Group’s (WBG) Completion and Learning Review (CLR) covers the period of the Country Assistance Strategy (CAS), FY13-16, and updated in the Performance and Learning Review (PLR) dated February 25, 2015. The World Bank Group’s (WBG) CAS had three focus areas: (i) improving competitiveness, (ii) improving resilience by consolidating social stability, and (iii) Show MoreThis review of the World Bank Group’s (WBG) Completion and Learning Review (CLR) covers the period of the Country Assistance Strategy (CAS), FY13-16, and updated in the Performance and Learning Review (PLR) dated February 25, 2015. The World Bank Group’s (WBG) CAS had three focus areas: (i) improving competitiveness, (ii) improving resilience by consolidating social stability, and (iii) strengthening governance. The CAS was broadly aligned with the Government’s Second National Poverty Reduction Strategy (PRSP II), 2012-2015, which seeks to improve governance, growth and job creation, social services, and environmental/spatial management. Specifically, the CAS focus areas and objectives supported PRSP II objectives on quality of economic infrastructure, promotion of the private sector and job creation, strengthening the social safety net, capacity building and improved performance in the healthcare system, and fiscal management.

Ethiopia: Nutrition Project (PPAR)

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Although Ethiopia has achieved substantial progress in economic, social, and human development over the past decade, the ranking of its Human Development Index remains low. Malnutrition is widespread, and it lowers resistance to infections and affects the intellectual development of children and productivity among adults. The project development objectives were “to improve child and maternal care Show MoreAlthough Ethiopia has achieved substantial progress in economic, social, and human development over the past decade, the ranking of its Human Development Index remains low. Malnutrition is widespread, and it lowers resistance to infections and affects the intellectual development of children and productivity among adults. The project development objectives were “to improve child and maternal care behavior, and increase utilization of key micronutrients, in order to contribute to improving the nutritional status of vulnerable groups.” Direct beneficiaries consisted of pregnant and lactating women, and under-five children in food insecure regions with high malnutrition rates. Ratings for the Nutrition Project are as follows: Outcome was satisfactory, Risk to development outcome was moderate, M&E Quality was substantial, Bank performance was moderately satisfactory, and Borrower performance was moderately satisfactory. Lessons from the project include: (i) The use of interactive approaches at the community level can facilitate behavior change. (ii) In very poor communities, CBN needs to complement behavior change interventions with income support to achieve the desired goals fully because behavior change also depends on the means to keep or to buy healthful and nutritionally rich food. (iii) Favorable institutional conditions, programmatic arrangements, and incentives facilitate the unfolding of multisectoral engagement. (iv) Integration of nutrition operations with an existing and institutionalized service delivery mechanism at the community level facilitates CBN implementation. (v) External collaboration with development partners, under government leadership, catalyzes international expertise and good practices that benefit and reinforce government policy and its nutrition agenda.

IEG Work Program and Budget (FY20) and Indicative Plan (FY21-22)

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To maximize its relevance and value added for the World Bank Group (WBG), IEG will align its work program with WBG strategic priorities. IEG also aims to maintain a clear line of sight with the WBG mission and the Sustainable Development Goals (SDGs), as well as with commitments made in the IBRD and IFC Capital Packages and in the context of IDA replenishments. Furthermore, IEG will keep an Show MoreTo maximize its relevance and value added for the World Bank Group (WBG), IEG will align its work program with WBG strategic priorities. IEG also aims to maintain a clear line of sight with the WBG mission and the Sustainable Development Goals (SDGs), as well as with commitments made in the IBRD and IFC Capital Packages and in the context of IDA replenishments. Furthermore, IEG will keep an increased focus on outcomes, countries, clients, and beneficiaries in its work, and aim to foster a greater outcome orientation throughout the WBG. To achieve this strategic vision, IEG will focus its work program on the key development effectiveness questions that the institution and its clients are most concerned about. For each of these questions, we will strive to answer “why”, “how, “where”, “when”, and “for whom” specific interventions or programs have achieved results or not. By working more closely with operational units and other evaluation initiatives across the WBG, we will seek to significantly enhance IEG’s value added for the Board and WBG management. The work program will be anchored around a series of “streams”, building evidence over time on connected themes and trying to bridge between project, country, sector and strategic impact: Fragility, Conflict and Violence (FCV), Gender, Maximizing Finance for Development, Human Capital, Climate Change, Growth and Transformation. In addition, IEG will work along an ‘effectiveness’ cross-cutting stream, aimed at examining systemic issues in WBG effectiveness, as well as working towards building a stronger outcome focus for WBG operations and strategies.

Mobilizing Disruptive and Transformative Technologies for Development An Assessment of the World Bank Group’s Readiness (Approach Paper)

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The world is experiencing a technological revolution with far reaching implications for developing and developed countries. Technological disruption is not new, but the speed at which new technologies are emerging is unprecedented, and so is their diffusion across the global economy. Disruptive technologies can transform development – in both positive and negative ways – and result in new Show MoreThe world is experiencing a technological revolution with far reaching implications for developing and developed countries. Technological disruption is not new, but the speed at which new technologies are emerging is unprecedented, and so is their diffusion across the global economy. Disruptive technologies can transform development – in both positive and negative ways – and result in new paradigms for poverty reduction and boosting shared prosperity. Recognizing these positive and negative implications, and with a sense of urgency to position itself to help client countries mobilize disruptive technologies for their development, the Bank Group has adopted a new approach. This evaluation has a two‐fold purpose: first, to assess the Bank Group’s readiness in helping clients harness the opportunities and mitigate the risks posed by disruptive technologies; and second, to inform the implementation of the Bank Group’s new approach to disruptive technologies and its efforts to become a partner of choice in mobilizing disruptive technologies.

Improving urban governance: Lessons from Ethiopia

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Improving Urban Governance: Lessons from Ethiopia
This brief captures the lessons from evaluating the World Bank’s Ethiopia Urban Local Government Development Project (ULGDP).This brief captures the lessons from evaluating the World Bank’s Ethiopia Urban Local Government Development Project (ULGDP).

Tajikistan CLR Review FY15-18

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This independent review of the World Bank Group's Completion and Learning Review (CLR) covers the period of the Country Partnership Strategy (CPS), FY15-FY18.The government's National Development Strategy (NDS), 2006-2015, aimed at generating sustainable growth, improving public administration, and developing human resources. The CPS original design was broadly aligned with NDS through its three Show MoreThis independent review of the World Bank Group's Completion and Learning Review (CLR) covers the period of the Country Partnership Strategy (CPS), FY15-FY18.The government's National Development Strategy (NDS), 2006-2015, aimed at generating sustainable growth, improving public administration, and developing human resources. The CPS original design was broadly aligned with NDS through its three focus areas: (1) strengthening the role of the private sector; (2) social inclusion; and, (3) promoting regional connectivity. The CPS design also included cross-cutting areas in gender, governance, and climate change. The CPS sought to help Tajikistan transition to a new growth model. The cost of complying with business regulation dropped, although Tajikistan continues to rank the lowest in the Central Asia region per the 2019 Doing Business report. Tax e-filing has exceeded expectations, but taxpayer satisfaction with new procedures was not assessed. The World Bank collaborated effectively with development partners in areas such as energy, water, and governance. INT received ten complaints and launched three investigations which all closed as substantiated.IEG agrees with the lessons and highlights the following: (i) overambitious objectives and/or under-emphasis of institutional impacted the success of the CPS program; (ii) with greater ownership and commitment, the government can (and does) implement “transformational projects” and achieve significant results; and, (iii) uneven governance standards, weak administration capacities, and inadequate internal review practices are constraints to swift implementation and need to be anticipated and managed proactively.IEG adds two lessons: i) A country program should identify objectives that match the level of ambition of the program and its intended results and impact; and ii) Political economy analysis of the drivers of policy reform is necessary early on to accompany implementation of ambitious goals.

Poland: Public Finance, Resilience and Growth Development Policy Loans (PPAR)

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This Project Performance Assessment Report (PPAR) evaluates four lending operations implemented in Poland from 2012 to 2016. The development objectives of the first series were to support Poland’s fiscal consolidation agenda while strengthening fiscal institutions and improving the efficiency and sustainability of social spending. The objectives of the second series were to enhance macroeconomic Show MoreThis Project Performance Assessment Report (PPAR) evaluates four lending operations implemented in Poland from 2012 to 2016. The development objectives of the first series were to support Poland’s fiscal consolidation agenda while strengthening fiscal institutions and improving the efficiency and sustainability of social spending. The objectives of the second series were to enhance macroeconomic resilience, strengthen labor market flexibility and employment promotion, and improve private sector competitiveness and innovation. Ratings for the First and Second Public Finance Development Policy Loans are as follows: Outcome is satisfactory, Risk to development outcome is low, Bank performance is satisfactory, Borrower performance is moderately satisfactory. Ratings for the First and Second Resilience and Growth Development Policy Loans are as follows: Outcome is moderately satisfactory, Risk to development outcome is moderate, Bank performance is satisfactory, and Borrower performance is satisfactory. Lessons include: (i) Development policy lending can help mitigate global economic and financial shocks and protect vulnerable groups in high-income countries when accompanied with timely, high-quality, and responsive technical assistance that supports the reforms. (ii) Where a high-income country is required to implement constitutional provisions or agreed reforms with a regional body, providing support for the implementation of such reforms is likely to enhance the likelihood of success. (iii) RAS are a promising tool for engaging governments in high-income countries when Bank Group staff demonstrate the capacity to produce timely and high-quality analytical products in response to government requests. (iv) Coordinating with other partners in situations where the World Bank is not the largest stakeholder is important for successful implementation of reforms. (v) Analyzing the political cost of implementing proposed reform measures is an important part of policy lending.