In 2007, the government of Ecuador canceled ongoing operations and brought relations with the World Bank Group (WBG) to a near total break. The WBG’s support to Ecuador during the evaluation period is thus set within the context of a gradual and deliberate restoration of a partnership, following a six-year period (Fiscal Years 2008-13) without a formal engagement strategy.

During this hiatus, the Bank Group took proactive steps to rebuild dialogue with the government of Ecuador and scope partnerships, using nonlending technical assistance to respond to requests across different sectors and levels of government. Furthermore, by reestablishing lending at the municipal level, the WBG was able to demonstrate strategic and financial value and overcome the impasse in dialogue at the national level.

This evaluation examines the Bank Group’s strategy along two interconnected fronts. Firstly, the gradual reestablishment of a constructive partnership with the government after a break in relations and, secondly, the WBG’s support to the country’s rebalancing to a fiscally sustainable, private sector–led growth model—one that ensured protection of the vulnerable over the transition. 

The evaluation includes lessons that may be of relevance to future WBG engagements in Ecuador and future WBG engagements after a hiatus in dialogue.