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Topic:Poverty
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The World Bank Group’s Experience with the IDA Private Sector Window: An Early-Stage Assessment

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Employees of Vita Foam working in Freetown, Sierra Leone on June 19, 2015. Photo © Dominic Chavez/World Bank
This report is an early-stage assessment of the World Bank Group’s experience with the International Development Association (IDA) Private Sector Window (PSW).This report is an early-stage assessment of the World Bank Group’s experience with the International Development Association (IDA) Private Sector Window (PSW).

The Drive for Financial Inclusion: Lessons of World Bank Group Experience – Approach Paper

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Financial inclusion is expected to help address poverty and shared prosperity by improving and smoothing household incomes at the same time as reducing vulnerability to shocks, improving investments in education and health, and encouraging the growth of businesses and related employment. The poor face immense financial challenges. The income of the poor is not only lower but also more volatile. Show MoreFinancial inclusion is expected to help address poverty and shared prosperity by improving and smoothing household incomes at the same time as reducing vulnerability to shocks, improving investments in education and health, and encouraging the growth of businesses and related employment. The poor face immense financial challenges. The income of the poor is not only lower but also more volatile. They often rely on a range of unpredictable jobs or on weather-dependent agriculture. Transforming irregular income flows into a dependable resource to meet daily needs represents a crucial challenge for the poor. Another challenge lies in meeting costs if a major expense arises (such as a home repair, medical service, or funeral) or if a breadwinner falls ill. Savings, credit, insurance, and remittances can each help the poor to smooth volatile incomes and expenses, providing a margin of safety when income drops or expenses rise, or providing the needed funds for children’s education or health care. Additionally, financial inclusion in the form of financial services for microentrepreneurs and very small enterprises has been guided by the intention that it can help them to survive, grow, and generate income for the poor. Nonetheless, evidence that financial inclusion directly takes people out of poverty is mixed. The main objective of this evaluation is to enhance learning from the Bank Group’s experience, including the World Bank, IFC, and MIGA, in supporting client countries in their efforts to advance financial inclusion over the period of FY14–20. It both updates and expands on a 2015 IEG evaluation, which assessed Bank Group activity for FY07–13. It not only updates an evaluation of WBG activity in financial inclusion and in support of national financial inclusion strategies, but also plans for a deep focus on the following: (i) A retrospective look at the drive for universal financial access (the UFA 2020 initiative), including outcomes achieved in its 25 focus countries; (ii) Progress and challenges in women’s access to financial services (gender); (iii) An in-depth examination of digital financial inclusion efforts and the role of digital financial services as vehicles for financial inclusion. This work intends to focus more deeply on outcomes on the ground for poor households and microenterprises. It intends to understand the relevance and effectiveness of these activities, including the outcomes and the mechanisms by which observed outcomes were achieved. The evaluation aims to identify lessons applicable to the World Bank, IFC or MIGA by obtaining evidence-based findings of what works, why, and for whom.

Mozambique Country Program Evaluation (Approach Paper)

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Mozambique’s recent history is characterized by economic growth, rising inequality, and fragility. After the end of a civil war in 1992, Mozambique enjoyed a sustained period of growth until 2014, positioning it as one of the fastest-growing countries in Sub-Saharan Africa. Such growth, however, was not broadly shared and inequality increased. Fragility in Mozambique traces back to the uneven Show MoreMozambique’s recent history is characterized by economic growth, rising inequality, and fragility. After the end of a civil war in 1992, Mozambique enjoyed a sustained period of growth until 2014, positioning it as one of the fastest-growing countries in Sub-Saharan Africa. Such growth, however, was not broadly shared and inequality increased. Fragility in Mozambique traces back to the uneven historical development of the state, in part shaped by geographical characteristics, and to the nature of the political settlement and the exclusionary political arrangements that it maintains. This evaluation seeks to assess the World Bank Group’s success at helping Mozambique address challenges that constrain its development. The evaluation will cover fiscal years (FY)08–21 and is timed to inform Mozambique’s next Country Partnership Framework (CPF). The evaluation will assess the Bank Group’s support for addressing three development challenges and drivers of fragility in Mozambique: (i) rural poverty linked to weak agricultural productivity and regional inequalities; (ii) weak institutions and governance; and (iii) vulnerability to natural disasters and climate change.

Towards Productive, Inclusive, and Sustainable Farms and Agribusiness Firms: An Evaluation of the World Bank Group’s Support for Development of Agri-Food Economies (2010-2020) – Approach Paper

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Sustainable development of the agricultural sector and the associated agrifood industry is key to ending hunger and poverty and meeting other global goals, such as those related to climate change. Fostering broad-based agricultural development requires transforming agrifood systems because of their critical role in economic growth, employment, and sustainable agricultural development. The World Show MoreSustainable development of the agricultural sector and the associated agrifood industry is key to ending hunger and poverty and meeting other global goals, such as those related to climate change. Fostering broad-based agricultural development requires transforming agrifood systems because of their critical role in economic growth, employment, and sustainable agricultural development. The World Bank Group has been a major supporter of previous efforts to develop agriculture and the broader agrifood system economies. The objective of the evaluation is to assess how well the World Bank Group identifies the needs, addresses the constraints, and achieves results in supporting agrifood system development, defined as the development of more productive, inclusive, and sustainable farms and agribusiness firms. More specifically, the evaluation aims to (i) assess the relevance of the World Bank Group in identifying and addressing the key AFS development challenges of raising productivity, improving inclusion and reducing environmental sustainability threats especially from climate change; (ii) assess the effectiveness of World Bank Group support in making AFS more productive, inclusive, and sustainable; and (iii) identify lessons of experience, success factors, and constraints on effectiveness.

Nepal: Shunaula Hazar Din – Community Action for Nutrition Project (PPAR)

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Improvements in child nutrition in Nepal have lagged behind the country’s economic, social, and human development progress over the past decades. At the time of project design in 2011, Nepal ranked among the top countries with the highest national prevalence of stunted growth (40 percent) in children under the age of five, and the country was not on track to reach the Millennium Development Goal’ Show MoreImprovements in child nutrition in Nepal have lagged behind the country’s economic, social, and human development progress over the past decades. At the time of project design in 2011, Nepal ranked among the top countries with the highest national prevalence of stunted growth (40 percent) in children under the age of five, and the country was not on track to reach the Millennium Development Goal’s target of reducing the rate of malnutrition by half. Improving child nutrition is essential for enhancing human capital accumulation, boosting economic growth, and reducing poverty, since the consequences of undernutrition for young children last through adulthood and reduce their potential to learn and to contribute to society. The project was the World Bank’s first stand-alone lending operation in support of Nepal’s nutrition agenda. The project name, “Sunaula Hazar Din,” which means “golden 1,000 days,” reflects the importance of the period from conception to 24 months of age as a window of opportunity to prevent undernutrition before it surfaces. The project’s objective was to improve practices that contribute to reduced undernutrition of women of reproductive age and children under the age of two. At entry, the project covered 15 districts (out of 75 districts in the country), selected based on levels of stunted growth and poverty. A second objective was added in 2015, after the devastating earthquake that struck the country in April, to provide emergency nutrition and sanitation response to vulnerable populations in earthquake affected areas. The project was then operational in 23 districts. Ratings for the Community Action for Nutrition Project are as follows: Outcome was moderately satisfactory, overall efficacy was substantial, Bank performance was moderately satisfactory, and Quality of monitoring and evaluation was substantial. Lessons from the project include: (i) A community-driven implementation approach may not enforce the multisectoral design approach of the project to address the multiple determinants of nutrition. (ii) Equal RRNI-cycle time frames across the menu of goals can slant the selection of goals toward those for which technical know-how is already available, and hence overshadow the spirit of flexibility of the CDD approach. (iii) In settings with limited human resources, the implementation of innovative operations such as RRNIs requires a robust operational planning that takes into account a steep learning curve, strong preparatory arrangements that address weak capacities at entry, and adequate project readiness at entry. (iv) Good collaboration with specialized development partners in emergency relief facilitated the effective responses that maintained the focus on nutrition and on the original intent of the project. (v) Good collaboration with specialized development partners in emergency relief facilitated the effective responses that maintained the focus on nutrition and on the original intent of the project. (vi) In CDD projects that support the achievement of goals yet to be chosen by communities, and which are thus unknown at the outset, additional efforts to collect more granular baseline data at the ward level can facilitate the assessment of the project achievements at completion.

Independent Evaluation Group (IEG) Work Program and Budget (FY22) and Indicative Plan (FY23-24)

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IEG adapted its work program to align with the rapid adjustment of the WBG’s strategic priorities to respond to the COVID-19 pandemic. At the same time, IEG will continue to keep a line of sight to other emerging and longstanding corporate priorities including the IDA 20 special themes and cross-cutting areas, climate change ambition, concerns on debt sustainability, the Green, Resilient, Show MoreIEG adapted its work program to align with the rapid adjustment of the WBG’s strategic priorities to respond to the COVID-19 pandemic. At the same time, IEG will continue to keep a line of sight to other emerging and longstanding corporate priorities including the IDA 20 special themes and cross-cutting areas, climate change ambition, concerns on debt sustainability, the Green, Resilient, Inclusive Development (GRID) framework, the new WBG knowledge framework and the outcome orientation agenda. IEG will also continue its efforts to create a diverse and inclusive workplace, aligned with the corporate priority on Ending Racism.

Mongolia CLR Review FY13-21

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This review examines the implementation of the FY13-FY17 Mongolia Country Partnership Strategy (CPS), which was endorsed by the World Bank Group (WBG)’s Board of Executive Directors in April 2012, updated in the Performance and Learning Review (PLR) of December 2016 (which extended the CPS by six months) and further revised in the PLR of November 2019. At that time, the CPS period was extended Show MoreThis review examines the implementation of the FY13-FY17 Mongolia Country Partnership Strategy (CPS), which was endorsed by the World Bank Group (WBG)’s Board of Executive Directors in April 2012, updated in the Performance and Learning Review (PLR) of December 2016 (which extended the CPS by six months) and further revised in the PLR of November 2019. At that time, the CPS period was extended retroactively by three years until December 31, 2020. The CPS had three Focus Areas: (1) enhance Mongolia’s capacity to manage the mining economy sustainably and transparently; (2) build a sustained and diversified basis for economic growth and employment in urban and rural areas; and (3) address vulnerabilities and growing inequality through improved access to services and better service delivery, safety net provision, and improved disaster risk management. The CPS objectives were well aligned with the country’s own development goals as set out in various government programs and strategies.

Indonesia CLR Review FY16-20

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This review of the World Bank Group (WBG) Completion and Learning Review (CLR) covers the period of the Country Partnership Framework (CPF) FY16-20, as updated in the Performance and Learning Review (PLR). The review covers WBG activities since July 1, 2015 through June 30, 2020 and not since July 1, 2016 as stated in the CLR. Indonesia is the world’s fourth most populous nation, with a Show MoreThis review of the World Bank Group (WBG) Completion and Learning Review (CLR) covers the period of the Country Partnership Framework (CPF) FY16-20, as updated in the Performance and Learning Review (PLR). The review covers WBG activities since July 1, 2015 through June 30, 2020 and not since July 1, 2016 as stated in the CLR. Indonesia is the world’s fourth most populous nation, with a population of 271 million (2019) across over 6000 inhabited islands. During the CPF period (and up to the COVID pandemic) the economy grew steadily, underpinned by solid macro-economic fundamentals, with an annual GDP growth rate (2016-19) of 5.1 percent. The 2020 SCD Update notes that the poverty rate declined to an all-time low of 9.4 percent in early 2019 and that incomes for the lower 40 percent have climbed, but that the pace of poverty reduction has been only 0.3 percentage points per year post 2010, against 0.6 percentage points per year in 2003-2010. Indonesia’s Gini coefficient declined from 38.6 in 2016 to 37.8 in 2018. The 2015 SCD identified three key pathways to shared prosperity: strong economic and jobs growth, improved access to key services, and better natural resource management.

Madagascar Country Program Evaluation (Approach Paper)

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This Country Program Evaluation will assess the development effectiveness of the World Bank Group’s engagement in Madagascar between fiscal year (FY)07 and FY21, and will explore whether the Bank Group’s $3 billion engagement was appropriate for the Malagasy context of weak governance, widespread poverty, and economic stagnation and adapted to changing circumstances, priorities, and lessons from Show MoreThis Country Program Evaluation will assess the development effectiveness of the World Bank Group’s engagement in Madagascar between fiscal year (FY)07 and FY21, and will explore whether the Bank Group’s $3 billion engagement was appropriate for the Malagasy context of weak governance, widespread poverty, and economic stagnation and adapted to changing circumstances, priorities, and lessons from experience. It’s main goal is to distill lessons from experience to inform future engagement. The evaluation is timed to inform the formulation of the new CPF with Madagascar, and also aims to derive significant lessons for the broader development community. To these ends, it will (i) assess the relevance and effectiveness of the Bank Group’s support to Madagascar between FY12 and FY21 and (ii) examine the Bank Group’s contribution to improving governance and fostering rural development during FY07–21.

Jamaica: Rural Economic Development Initiative (PPAR)

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The national poverty rate in Jamaica declined over the two decades prior to appraisal, but rural poverty remained stubbornly high. The Government of Jamaica recognized that if the country was to achieve its goal of “Developed World” status, as indicated in the Government’s Vision 2030 plan, economic development in rural areas needed to keep pace with that experienced in urban areas. In 2008, the Show MoreThe national poverty rate in Jamaica declined over the two decades prior to appraisal, but rural poverty remained stubbornly high. The Government of Jamaica recognized that if the country was to achieve its goal of “Developed World” status, as indicated in the Government’s Vision 2030 plan, economic development in rural areas needed to keep pace with that experienced in urban areas. In 2008, the Government requested World Bank support for a project that would promote rural economic development and income generation by improving access to markets for small-holder farmers and by encouraging rural tourism development. Unusual among the Bank’s productive alliance projects, the present project sought to combine both agriculture and tourism, reflecting the unique circumstances of Jamaica’s rural landscape and the potential for agriculture to engage more with the tourism sector, a major contributor to foreign currency receipts. The Bank also determined that the rural agriculture and tourism sectors offered the most significant potential for rural growth and development. The resulting Bank project, the Rural Economic Development Initiative (REDI), was designed to stimulate rural economic growth and increase rural incomes. Ratings for the Rural Economic Development Initiative are as follows: Outcome was satisfactory, Overall efficacy was substantial, Bank performance was moderately satisfactory, and Quality of monitoring and evaluation was negligible. This assessment offers the following issues: (i) For complex productive alliance projects involving the selection of multiple rural subprojects and the introduction of new private-sector market concepts to rural communities, substantial investment to ensure project implementation readiness during project preparation can contribute to a faster and more effective project start. (ii) For productive alliance projects introducing modern technologies and new business management practices into rural populations, ensuring adequate skills and capacity in the implementing agencies will enhance the achievement of results. (iii) Technical assistance supporting private sector market approaches can be critical for linking rural agricultural and tourism operations to new and evolving markets.