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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.

Malawi CLR Review FY13-17

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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-FY17. Malawi is one of the poorest countries in the world. It is an agrarian landlocked country, with a population of 18.6 million (2019) growing at 3 percent per year. Between 2013 and 2017 real GDP and real per capita GDP grew at 4.0 and 1.2 percent 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-FY17. Malawi is one of the poorest countries in the world. It is an agrarian landlocked country, with a population of 18.6 million (2019) growing at 3 percent per year. Between 2013 and 2017 real GDP and real per capita GDP grew at 4.0 and 1.2 percent per year, respectively. The poverty headcount ratio at the national poverty line was 51.5 percent in 2016, slightly above the 50.7 percent in 2010. The Gini index (World Bank estimate) stood at 44.7 in 2016, below its 2010 level of 45.5. The Human Development Index improved from 0.441 in 2010 to 0.47 in 2015 and to 0.477 in 2017. During the review period, Malawi faced several challenges including the governance and public financial management crisis in September 2013 and two natural disasters- the flooding in 2015 which affected half of the country and the drought in 2016. The “cashgate” led to temporary suspension of donor budget support and sharp reduction in disbursement of aid funds through government systems with the consequent impact on the fiscal deficit.

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.

What works in public utility reform: Lessons from evaluations in the energy and water sectors

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What works in public utility reform:  Lessons from evaluations in the energy and water sectors
Utility reform has never been more important. The COVID-19 pandemic has badly impacted utilities across the world. Many utilities are now under intensified financial stress due to budget reductions and a loss of revenue, resulting from a sudden drop in collection rates, suspension of billing, and tariff adjustment in some countries. This, in turn, has made it more challenging to ensure continued Show MoreUtility reform has never been more important. The COVID-19 pandemic has badly impacted utilities across the world. Many utilities are now under intensified financial stress due to budget reductions and a loss of revenue, resulting from a sudden drop in collection rates, suspension of billing, and tariff adjustment in some countries. This, in turn, has made it more challenging to ensure continued service delivery. IEG recently published the synthesis Public Utility Reform: What lessons can we learn from IEG evaluations in the energy and water sectors?, a compilation of evidence of what worked and what did not work, and why, in World Bank support of public utility reforms in the energy and water sectors in its client countries. Its findings are even more relevant in the context of uncertainty about medium-to long-term outlook for recovery from the challenges imposed by COVID-19. Well before COVID-19, financial viability and institutional accountability were the two main challenges faced by public utilities in improving service outcomes in the energy and water sectors. Now, the effectiveness of utilities in these two fundamental areas remain critical for ensuring the quality and sustainability of these vital basic services during a post-pandemic recovery. Financial Viability IEG analysis reveals a range of World Bank interventions geared to support financial viability in both the energy and water sectors.   Recovering the cost of service is at the core of sector reform. Across both water and energy sectors, inadequate cost recovery is a key driver of financial underperformance. Poor bill collection and operational inefficiencies (including excessive network losses) also have a significant role. IEG finds that, while tariff reform is fundamental, improving operational efficiency of service providers is crucial for financial sustainability. The cumulative evidence indicates that when inefficiencies result in high-cost service provision, improving utilities’ operational efficiency should precede or go hand-in-hand with tariff increases. Additionally, the gains from reductions in technical and commercial losses, improvements in payment collection, financial management, and demand side management proved easier to sustain once implemented. Evidence points to the importance of strengthening utilities’ commercial orientation, which is vital for the provision of adequate and reliable services, regardless of whether the service delivery agents are under public or private ownership. Utilities that emphasize cost control, customer orientation, and responsiveness to incentives are more likely to make meaningful progress. For example, World Bank operations in Vietnam and Turkey helped improve financial sustainability of electric power utilities through technical support and policy reforms, incrementally implementing tariff and market regulations in the electricity sector. Utilities may need more financial support as they weather the economic crisis triggered by the pandemic. However, as the recently published IEG evaluation State your Business! An evaluation of World Bank Group support to the Reform of State-Owned Enterprises cautions, temporary subsidies introduced at the time of COVID-19 can pose “policy traps” supported by powerful vested interests, which can be hard to reverse once the crisis is over.   Institutional Accountability Creating the right accountability and incentives is essential for effective service delivery. In both energy and water sectors, institutional accountability is critically tied to performance.  Sustaining reforms requires competent institutions and strong administrative capacity.  Improved performance can be a first step towards attracting private sector investment.  Strengthening sector planning, utility management, capacity and skills, can improve sector outcomes. A solid sectoral fiscal, financial, and regulatory framework also defines and sets the context for leveraging markets and the private sector to support service delivery. There are multiple institutional pathways that could lay the foundation for improved and sustained service delivery. There is no single model but there are certain principles that work. In energy, improved accountability and regulatory performance drive sector outcomes. Good practices on corporate governance and regulation enable the sector environment to leverage markets and the private sector. In Rwanda, for example, the World Bank (through budget support operations), the International Finance Corporation  (through advisory services), and Public-Private Infrastructure Advisory Facility (PPIAF) helped the government develop sector regulatory structures and separate water and electricity utilities to improve governance, accountability and transparency. Institutional and policy reforms transformed the Rwanda Energy Group into a commercially operated state-owned enterprise and helped attract private finance. In water, improved capacity, incentives, and transparent rules on accessing funds can ensure good sector outcomes. Good financial and operational data systems are also important. In Peru, the utility Sedapal radically changed its corporate management approach and work culture, including adopting a new performance-based compensation and incentive system driven by reaching results targets. IEG’s field-based assessment confirmed a steady improvement in access coverage, basic service parameters, and operational and financial performance. Political and social challenges In both sectors, utilities' operations and management are closely linked to the political economy in which they operate. Political economy considerations can inform specific design elements, including choices of programmatic instruments vs. standalone operations, or front-loading vs. back-loading of important reform actions in a programmatic series. Experience shows that support to operations needs to match the time frame in which effective government action can reasonably take place. The World Bank’s experience shows that complementary interventions and sustained support contribute positively to favorable and enduring results. Regarding tariff reform, the institutional, political, and social challenges are considerable. Public opposition to tariff reforms reflects a lack of confidence in public service improvements and that vulnerable groups will be protected. At the same time, it is important to address potentially negative distributional consequences of reforms through such measures as differentiated tariffs and targeted assistance programs. Their success depends on the government’s ability to reach vulnerable households through fiscally sustainable programs. Read the report | Public Utility Reform: What lessons can we learn from IEG evaluations in the energy and water sectors? Pictured at top, clockwise from left: The main drinking water pipeline for 750 households in Alapars and Karenis communities (Kotayk region) being fully rehabilitated. Armenia. Photo credit: Armine Grigoryan / World Bank The control room at the thermal power station at Takoradi, Ghana, June 21, 2006. Photo credit: Jonathan Ernst/World Bank Electrical Substation in Kenya. Photo credit: Andrew Stone Windmill, Nicaragua photo credit: Ihsan Kaler Hurcan Wegala Community Water Supply and Sanitation Project. Sri Lanka. Photo credit: Simone D. McCourtie / World Bank Girl gathers drinking water from a community water pipe. Photo credit: Dominic Sansoni / World Bank

Malawi: Irrigation, Rural Livelihoods and Agricultural Development Project, and Agricultural Development Program Support Project (PPAR)

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The World Bank has been supporting the government of Malawi in its effort to promote sustainable growth in agricultural productivity. The Irrigation, Rural Livelihoods and Agricultural Development Project (IRLADP) supported irrigation farming through the integrated provision of hardware, mainly irrigation infrastructure, and software, mainly local and institutional capacity building. The Show MoreThe World Bank has been supporting the government of Malawi in its effort to promote sustainable growth in agricultural productivity. The Irrigation, Rural Livelihoods and Agricultural Development Project (IRLADP) supported irrigation farming through the integrated provision of hardware, mainly irrigation infrastructure, and software, mainly local and institutional capacity building. The Agricultural Development Program Support Project (ADPSP) addressed the efficiency of decision-making at the institutional agricultural policy and farm input–productivity level. The objective of the Project Performance Assessment Report is to assess how the farm-level support of both projects contributed to sustainable increases in agricultural productivity among smallholder farmers (SHFs). Both projects fostered an integrated approach to increases in agricultural productivity by promoting the uptake of traditional measures to support supply (irrigation, modern inputs, and agronomic knowledge) together with complementary practices of improved land and water management. Ratings for the Irrigation, Rural Livelihoods and Agricultural Development 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. Ratings for the Agricultural Development Program Support Project are as follows: Outcome was moderately unsatisfactory, Overall efficacy was modest, Bank performance was moderately satisfactory, and Quality of monitoring and evaluation is modest. This assessment offers the following lessons: (i) An integrated and participatory approach to agricultural development can initiate sustainable productivity growth among SHFs. In the context of a SHF-dominated agricultural sector and low productivity, traditional support measures of input supply are needed to close agronomic yield gaps. (ii) Agricultural projects with a supply-side focus on productivity growth that ignore market linkages are unlikely to provide the right agribusiness mind-set or incentives for farmers to sustainably invest in longer-term agricultural productivity. (iii) A government’s insufficient capacity and resources for agricultural sector development make it difficult to maintain an innovative but intensive demand-driven approach to service delivery in agriculture. (iv) Sustainable land and water management practices require a comprehensive approach that goes beyond irrigation or demonstration plots. (v) For projects preparing an Agriculture Sector-Wide Approach, monitoring production outcomes without a counterfactual does not allow an understanding of what is driving the anticipated productivity increases.

An Evaluation of the World Bank Group’s Support to Municipal Solid Waste Management, 2010–20 (Approach Paper)

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Municipal solid waste (MSW) has emerged as one of the most pressing challenges for urban areas across the world. This evaluation is the Independent Evaluation Group’s (IEG) first major study of the Bank Group’s support for MSWM. It is timely given the rapidly increasing scale of MSW in most MICs and LICs and considering the spectacle of massive open garbage dumps in cities as diverse as Manila, Show MoreMunicipal solid waste (MSW) has emerged as one of the most pressing challenges for urban areas across the world. This evaluation is the Independent Evaluation Group’s (IEG) first major study of the Bank Group’s support for MSWM. It is timely given the rapidly increasing scale of MSW in most MICs and LICs and considering the spectacle of massive open garbage dumps in cities as diverse as Manila, Lagos, and New Delhi. The evaluation will highlight the linkages of MSWM with other sectors and themes such as water supply and sanitation, environment, climate change, health, jobs, and social protection. This can point to how the Bank Group can better support the development of synergistic policy frameworks and regulations for MSWM in client countries. This has implications for developing systematic collaboration between various sectors within the Bank Group and among client government ministries and for leveraging opportunities for climate finance.

Evaluation of the World Bank’s Support to Improving Child Undernutrition and Its Determinants (Approach Paper)

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Global reports on indicators of child undernutrition show mixed progress in reducing the stunting (impaired growth and development) of children under five, with Africa and South Asia most severely affected. There are many determinants of child undernutrition, which makes the challenge of improving outcomes multidimensional, requiring interventions in areas of health; agriculture; water, Show MoreGlobal reports on indicators of child undernutrition show mixed progress in reducing the stunting (impaired growth and development) of children under five, with Africa and South Asia most severely affected. There are many determinants of child undernutrition, which makes the challenge of improving outcomes multidimensional, requiring interventions in areas of health; agriculture; water, sanitation, and hygiene; social protection; education; and governance, depending on the country context. The objectives of this evaluation are to assess the contribution of the World Bank to improving outcomes related to child undernutrition and its determinants in countries affected by undernutrition, and to provide lessons and recommendations to inform the design of the World Bank’s future multidimensional nutrition support.

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.

Kazakhstan - Completion and Learning Review : IEG Review

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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.

China CLR Review FY13-17

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China, with a population of 1.4 billion, is an upper middle-income country with a GNI per capita of $8,690 in 2017. During 2013-2017, the economy grew annually at 7.1 percent on average, slower than the previous CPS period of 11.0 percent. A long period of economic growth put pressure on the environment and raised serious sustainability challenges. China is now contributing around 30 percent to Show MoreChina, with a population of 1.4 billion, is an upper middle-income country with a GNI per capita of $8,690 in 2017. During 2013-2017, the economy grew annually at 7.1 percent on average, slower than the previous CPS period of 11.0 percent. A long period of economic growth put pressure on the environment and raised serious sustainability challenges. China is now contributing around 30 percent to the world’s GHG emissions, partly because it is the largest consumer of carbon for electricity. Significant gains in poverty reduction continued during the CPS period. Absolute poverty, measured at $1.90 per day (2011 PPP), dropped from 1.9 percent in 2013 to 0.5 percent in 2018. Poverty and vulnerability in China are concentrated in rural areas and lagging regions in Central and Western China. The welfare of the bottom 40 percent of the income distribution has increased steadily. The Gini coefficient dropped to .46 in 2015 after having risen to a high of .5 in 2008. China’s Human Capital Index (HCI) stands at 0.67 and ranks 45th amongst 158 countries. The CPS had two focus areas: (i) supporting greener growth; and (ii) promoting more inclusive development as well as a cross-cutting theme of advancing mutually beneficial relations with the world.