The committee on Development Effectiveness met to consider The World Bank Group’s Early Support to Addressing COVID-19: Economic Response, April 2020 to June 2021 and the draft management response.

The committee welcomed the Independent Evaluation Group’s findings and recommendations and management’s constructive response while echoing their support for the World Bank Group’s agile decision-making and strategic response to the COVID-19 crisis. Members acknowledged the economic im­pacts of the crisis and the economic responses that supported most countries in progressing from the acute crisis phase to the initial recovery phase. They highlighted the timeliness of the evaluation and stressed its usefulness in enhancing the Bank Group’s response to future crises, particularly given the high economic vulnerability of countries as a result of this crisis and other global challenges, including the global food security and energy crises.

In line with the Independent Evaluation Group’s recommendation, mem­bers encouraged management to explore the feasibility of increasing the use of structured finance solutions to support recapitalizing small and medi­um enterprises while considering the potential complexities and tradeoffs. Members also welcomed the proposal for the Bank Group to codify a global crisis response playbook, developed jointly with the International Monetary Fund. They emphasized that the playbook should reflect flexibility and coun­try-specific contexts and cases in order for it to contribute to the strength­ening of the Bank Group’s operational model, promote the knowledge role of the Bank Group in addressing global challenges, and prepare the Bank Group for future crises. In addition, members raised concerns about the issue of data gaps on recipients’ use of funds and the buildup of sovereign debt due to the crisis, which has left highly indebted countries even more economical­ly vulnerable. On data gaps, members underscored the importance of uti­lizing data for effective planning and a targeted response to ensure that the Bank Group’s support reaches the most vulnerable households.

Members emphasized that improved crisis preparedness and response would be a pivotal element in the Bank Group’s evolution agenda. They welcomed management’s commitment to continuing to draw on the lessons learned from past crises response evaluations to help clients navigate their short-term crisis response while also addressing country development priorities and longer-term global and national challenges. Members commended the Bank Group’s internal coordination efforts and collaboration with the In­ternational Monetary Fund, development organizations and regional part­ners during the crisis. They encouraged the Bank Group to strengthen these partnerships in efforts to achieve sustainable crisis response. Furthermore, while recognizing the limitations and scope of the evaluation, members un­derscored the importance of early-stage evaluations in providing real-time feedback and relevant guidance to respond adequately to a crisis. Members also expressed their interest in reviewing and discussing the Independent Evaluation Group’s planned ex post assessments of the crisis.