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Report/Evaluation Type:Country Focused ValidationsProject Level Evaluations (PPARs)
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Morocco: First and Second Transparency and Accountability Development Policy Loan (PPAR)

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This Project Performance Assessment Report (PPAR) assesses two International Bank for Reconstruction and Development loans (First and Second Transparency and Accountability Development Policy Loans, known as Hakama 1 and 2) made to Morocco during 2013–16 and totaling approximately $407 million. The first operation was approved in October 2013 and the second in October 2015. The European Union and Show MoreThis Project Performance Assessment Report (PPAR) assesses two International Bank for Reconstruction and Development loans (First and Second Transparency and Accountability Development Policy Loans, known as Hakama 1 and 2) made to Morocco during 2013–16 and totaling approximately $407 million. The first operation was approved in October 2013 and the second in October 2015. The European Union and the African Development Bank provided parallel financing in the form of budget support; the European Union and World Bank also provided technical assistance. The development objectives of the loans were to strengthen mechanisms promoting transparency and accountability in the management of public resources, and to support legal reforms fostering open governance in Morocco in line with the new Constitution. Ratings are as follows: Outcome was moderately satisfactory, Risk to development was substantial, Bank performance was moderately satisfactory, and Borrower performance was satisfactory. Lesson from these projects include: (i) Improved knowledge management and better use of knowledge enhance operational quality. (ii) Monitoring and evaluation require attention both at the design stage and during implementation. (iii) Greater transparency and better information management are needed to sustain dialogue as World Bank teams and counterparts change. (iv) It would be helpful to assess a cluster of mutually reinforcing World Bank operations jointly.

Ukraine: First and Second Programmatic Financial Sector Development Policy Loan (PPAR)

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This Project Performance Assessment Report evaluates a programmatic series of two development policy loans (DPLs) to Ukraine of $500 million each that were provided as part of an urgent international effort to assist the country when Ukraine’s financial sector teetered on the edge of collapse in 2014. A perfect storm had affected the financial system when the geopolitical situation had descended Show MoreThis Project Performance Assessment Report evaluates a programmatic series of two development policy loans (DPLs) to Ukraine of $500 million each that were provided as part of an urgent international effort to assist the country when Ukraine’s financial sector teetered on the edge of collapse in 2014. A perfect storm had affected the financial system when the geopolitical situation had descended into deep crisis arising from the Euromaidan political upheaval, the Russian Federation’s annexation of Crimea, and the armed separatist movement in the eastern part of the country that initiated open, armed conflict that at times resembled a full-scale war. The exchange rate virtually halved between the end of 2013 (Hrv 8.13 to 1 U.S. dollar) and the end of 2014 (Hrv 15.8 to 1 U.S. dollar), inflation accelerated to 24 percent, the public sector fiscal deficit exceeded 10 percent of gross domestic product (GDP), and public debt—including guarantees—spiked to 70 percent of GDP. Ratings for the First and Second Programmatic Financial Sector Development Policy Loan are as follows: Outcome was satisfactory, Risk to development outcome was high, Bank performance was satisfactory, and Borrower performance was moderately satisfactory. Lessons from the projects include: (i) Close coordination among donors is critical for DPLs to maximize the effectiveness of a jointly designed reform program. (ii) The design of DPLs needs to focus on all relevant issues, potential weaknesses, and gaps in reform measures. (iii) The presence of task teams in the field can be a critical factor in promoting financial sector reform. (iv) Weak public understanding of financial sector reforms indicates a need to expand outreach efforts to enhance political sustainability. (v) Sustainable reform is difficult to achieve in countries that have corrupt power structures and court systems. Under such circumstances, it is an open question whether World Bank assistance risks providing additional resources for rent seeking rather than support for reforms.

Indonesia: Community-based Settlement Rehabilitation and Reconstruction Project for Central and West Java and Yogyakarta Special Region (PPAR)

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The government of Indonesia committed approximately $600 million to fund the reconstruction and rehabilitation of approximately 255,000 homes in the earthquake-affected areas. Several development partners also contributed funds for a significantly smaller reconstruction initiative. At the government’s request, the World Bank used these additional contributions to create a recipient-executed Java Show MoreThe government of Indonesia committed approximately $600 million to fund the reconstruction and rehabilitation of approximately 255,000 homes in the earthquake-affected areas. Several development partners also contributed funds for a significantly smaller reconstruction initiative. At the government’s request, the World Bank used these additional contributions to create a recipient-executed Java Reconstruction Fund (JRF). The World Bank used the JRF’s resources to create the Community-Based Settlement Rehabilitation and Reconstruction Project (CSRRP) for Central and West Java and Yogyakarta Special Region. The CSRRP’s objective was to assist in meeting the needs of eligible households for earthquake-resistant housing and community infrastructure in the affected areas. These objectives were to be achieved through a community-based approach in which beneficiaries would have a major role in decision-making about reconstruction of their homes and the construction of their communities’ infrastructure. Ratings for the Community-based Settlement Rehabilitation and Reconstruction Project (CSRRP) are as follows: Outcome was moderately satisfactory, Risk to development are modest, Bank performance was moderately satisfactory, and Borrower performance was satisfactory. Key lessons from the experience of the project include the following: (i) A community-based approach to postdisaster reconstruction can be effective and efficient in a context in which there is prior experience and existing institutions and cultural norms that favor it. (ii) Careful attention is essential in deciding who will be assisted financially in reconstructing homes, the amount of assistance to be provided, and the perceived effects and consequences of these decisions. (iii) The disaster resilience of project-provided housing can be undermined by subsequent expansion or enlargement of the housing. (iv) Community settlement or similar development plans may not meaningfully support disaster risk reduction unless these plans meet several essential conditions. (v) Women’s participation in community-driven development is a challenge to ensure when their interests, experiences, and perspectives are not properly considered in a project’s design, for example, through a gender analysis that identifies potential opportunities and obstacles to their meaningful participation in decision-making.

India: Andhra Pradesh and Telangana State Community-Based Tank Management Project (PPAR)

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This Project Performance Assessment Report assesses the development effectiveness of India’s Andhra Pradesh and Telangana State Community-Based Tank Management Project, which was approved in 2007 and closed in 2016. The development objectives of the project were to (i) improve agricultural productivity with the assistance of selected tank-based producers; and (ii) improve the management of tank Show MoreThis Project Performance Assessment Report assesses the development effectiveness of India’s Andhra Pradesh and Telangana State Community-Based Tank Management Project, which was approved in 2007 and closed in 2016. The development objectives of the project were to (i) improve agricultural productivity with the assistance of selected tank-based producers; and (ii) improve the management of tank systems with the assistance of selected water user associations. Ratings for this review are as follows: Outcome was satisfactory, Risk to development outcome was substantial, Bank performance was moderately satisfactory, and Borrower performance was moderately satisfactory. Lessons from this review include: (i) The potential economic benefits from improved irrigation infrastructure cannot be adequately realized by beneficiaries without the coordinated and ongoing support of multiple government agencies and research extension services in agriculture. (ii) Continued support to WUAs in terms of resources and social intermediation, such as through nongovernmental organizations, is key to enhancing their capacity for improved water management in drought-prone areas. (iii) Benefits from increased water availability can be further increased if cropping decisions by smallholder farmers in drought-prone areas are informed by water budgeting and collective governance principles for sustainable use.

Philippines CLR Review FY15-19

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The Philippine economy has been growing rapidly over the past decade. However, performance on poverty reduction, inequality and human development has been persistently low. The country is also a natural disaster hotspot, with frequent typhoons, tropical storms and earthquakes. It has also been affected by internal unrest, predominantly the protracted conflict and violence on the southern island Show MoreThe Philippine economy has been growing rapidly over the past decade. However, performance on poverty reduction, inequality and human development has been persistently low. The country is also a natural disaster hotspot, with frequent typhoons, tropical storms and earthquakes. It has also been affected by internal unrest, predominantly the protracted conflict and violence on the southern island of Mindanao. The 2014 Country Partnership Strategy (CPS) was well aligned with the Philippine Development Plan (PDP) 2011-16 that aimed at reducing poverty and improving the lives of the poorest segments of the population. The subsequent PDP 2017-22 shifted some emphasis to major infrastructure investments – where the WBG has not been particularly active – but also seeks to lift about six million citizens from poverty, achieve upper-middle income status by 2022, and to deliver a comprehensive agenda for peace and development in conflict-affected areas. The WBG program as adjusted in the 2017 PLR was therefore well aligned with significant aspects of the current PDP. The CPS set out a program that was divided in five focus areas: Transparent and Accountable Government; Empowerment of the Poor and the Vulnerable; Rapid, Inclusive and Sustained Economic Growth; Climate Change, Environment, and Disaster Risk Management; and Peace, Institution-Building, and Social and Economic Opportunity – all these areas were of high priority for the country and under the PDP.

Kazakhstan CLR Review FY12-17

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The Republic of Kazakhstan is a land-locked upper middle-income country with a nominal GNI per capita of $7960 in 2017. The country depends on oil, with production and exports of hydrocarbon accounting for 21 percent of GDP and 62 percent of exports in 2017. Average annual GDP growth declined from 6.5 percent during 2006-2011 to 3.6 percent during the CPS period (2012-17), primarily due to Show MoreThe Republic of Kazakhstan is a land-locked upper middle-income country with a nominal GNI per capita of $7960 in 2017. The country depends on oil, with production and exports of hydrocarbon accounting for 21 percent of GDP and 62 percent of exports in 2017. Average annual GDP growth declined from 6.5 percent during 2006-2011 to 3.6 percent during the CPS period (2012-17), primarily due to deteriorating oil prices after 2013. The fall in oil prices reduced the growth of non-oil activities and the associated gains in wages and employment. Per capita GDP grew at 2.1 percent during the CPS period and contributed to reduce the poverty headcount ratio at national poverty line from 5.5 to 2.5 percent of the population between 2011 and 2017. Income distribution improved, with the Gini index falling from 0.28 in 2011 to 0.275 in 2017. The Human Development Index improved from 0.765 in 2010 to 0.800 in 2017. Kazakhstan key development challenges and goals set in the Strategy 2030 and Strategy 2050 include strengthening macroeconomic management (including strengthening of non-oil sources of revenues), reducing the state presence in the economy, strengthening regional economics through infrastructure and agricultural value chains, ensuring equal access to high quality education, enhancing social protection, managing natural resources, policy regarding water resources and improving governance and public sector capacity.

Republic of Congo CLR Review FY13-17

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The Republic of Congo is a lower middle-income country with a GNI per capita (Atlas method in current $) of $1,480 in 2017. Oil production had been the main driver of growth and source of government revenues, with average annual GDP growth of 5.8 percent during 2008-2012. The poverty headcount ratio at $1.90 per day (2011 PPP, percent of population) had been declining, from 50.2 percent in 2005 Show MoreThe Republic of Congo is a lower middle-income country with a GNI per capita (Atlas method in current $) of $1,480 in 2017. Oil production had been the main driver of growth and source of government revenues, with average annual GDP growth of 5.8 percent during 2008-2012. The poverty headcount ratio at $1.90 per day (2011 PPP, percent of population) had been declining, from 50.2 percent in 2005 to 37 percent in 2011. However, poverty reduction occurred mainly in urban areas, with rural areas experiencing an increase in the poverty rate. There was little change in the Gini coefficient between 2005 and 2011. During the CPS period, oil prices dropped, resulting in a decline in average annual GDP growth to 1.4 percent during 2013-2017. The Systematic Country Diagnostic (2018) for the Republic of Congo estimated the poverty rate to have declined further to 35 percent in 2016. The human development index improved from 0.57 in 2012 to 0.61 in 2017. The overarching objectives of the CPS were to promote economic diversification and improve outcomes in public services with three pillars: (i) competitiveness and employment; (ii) vulnerability and resilience; and (iii) capacity building and governance.

Guatemala: Enhanced Fiscal and Financial Management for Greater Opportunities DPL Series (PPAR)

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This Project Performance Assessment Report (PPAR) evaluates a series of two development policy loans (DPLs) to Guatemala: Fiscal Space for Greater Opportunities ($200 million, P131763), and Enhanced Fiscal and Financial Management for Greater Opportunities ($340 million, P133738). The assessment aims to verify whether the operation achieved its intended outcomes, to understand what worked well Show MoreThis Project Performance Assessment Report (PPAR) evaluates a series of two development policy loans (DPLs) to Guatemala: Fiscal Space for Greater Opportunities ($200 million, P131763), and Enhanced Fiscal and Financial Management for Greater Opportunities ($340 million, P133738). The assessment aims to verify whether the operation achieved its intended outcomes, to understand what worked well and what did not, and to draw lessons for the future. The objectives of the series were to (i) strengthen tax administration and tax policy, (ii) strengthen budget management and increase the results orientation of public spending, and (iii) improve the management and coordination of social policies. Ratings are as follows: Outcome was moderately satisfactory, Risk to development outcome was high, Bank performance was moderately unsatisfactory, and Borrower performance was moderately unsatisfactory. This Project Performance Assessment Report offers the following lessons: (i) Tax administration and tax policy reforms in the face of major governance issues and long-standing opposition from influential interest groups are unlikely to be successful, even if backed by the World Bank’s analytical support, policy dialogue, and financing. Under these conditions, directly and indirectly targeting the governance issues over a longer period is necessary. (ii) Achieving progress on results budgeting requires strengthening of capacity, political commitment, sound monitoring and evaluation indicators, and cross-agency collaboration. (iii) Achieving results in policy lending requires a sound results framework, a credible theory of change, close linking of objectives with policy actions, and outcome-oriented target indicators.

Timor-Leste CLR Review FY13-19

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This review of the Timor-Leste’s Completion and Learning Review (CLR) of the World Bank Group’s (WBG) Country Partnership Strategy (CPS) covers the original CPS period (FY13-FY17), and the Performance and Learning Review (PLR) of 2016. The PLR extended the original CPS period by one year to FY18 in order to synchronize the CPS strategy with the country’s political cycle. Timor-Leste is a lower Show MoreThis review of the Timor-Leste’s Completion and Learning Review (CLR) of the World Bank Group’s (WBG) Country Partnership Strategy (CPS) covers the original CPS period (FY13-FY17), and the Performance and Learning Review (PLR) of 2016. The PLR extended the original CPS period by one year to FY18 in order to synchronize the CPS strategy with the country’s political cycle. Timor-Leste is a lower middle-income country, with an oil dependent economy. With oil reserves running low, the key challenges facing Timor-Leste are to achieve greater economic diversification and diminish reliance on public sector spending. At the beginning of the CPS period, the political environment was stable and oil prices high. The country was affected by a significant fall in oil prices that started in 2013, and political uncertainty adversely affected economic activity in 2017 and for most of 2018, as public expenditures fell by over one third. On the whole, growth was modest compared to East-Asia Pacific region peers, reflecting both the fall in oil prices and the political uncertainty towards the end of the program period.

Cabo Verde CLR Review FY15-17

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During the CPS period, Cabo Verde’s economy grew annually by an average of 3.2%, an improvement over the average 0.83% growth during 2012-2014. The percentage of the population below the national poverty line fell from 58% in 2001 to 35% in 2015. Cabo Verde’s UN Human Development Index rose from 0.647 in 2015 to 0.654 in 2017, and its rank increased from 132nd of 187 countries Show MoreDuring the CPS period, Cabo Verde’s economy grew annually by an average of 3.2%, an improvement over the average 0.83% growth during 2012-2014. The percentage of the population below the national poverty line fell from 58% in 2001 to 35% in 2015. Cabo Verde’s UN Human Development Index rose from 0.647 in 2015 to 0.654 in 2017, and its rank increased from 132nd of 187 countries in 2013 to 125th of 189 countries in 2015. Development challenges during the CPS period stemmed from the continuing effects of the 2008-2009 global financial crisis. The government responded to the crisis with an ambitious counter-cyclical investment program, leading to increased deficits and reversing a previously declining trajectory of public debt. Major ongoing constraints included lack of human capital (workforce skills), insufficient connectivity (transport, communications, and electricity) among the country’s ten islands; weak public sector performance; poor business climate; and lack of resilience to trade volatility and to climactic and geological hazards.