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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.

China - CN-Chongqing Urban-Rural Integration Pro

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China - CN-Chongqing Urban-Rural Integration Pro

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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.

Argentina - AR-Road Safety

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Tanzania - TZ-Second Central Transport Corridor

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Jamaica - JM Rural Economic Development Initiative

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Mozambique - MZ-Energy Dev. Access Project (APL-2)

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Brazil - Strengthening PM and Int Territorial Dev

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