Independent Evaluation Group FY25 Budget Proposal and FY26-27 Indicative Budget for Interim Work Program Report to the Board from the Committee on Development Effectiveness Joint Meeting of February 28, 2024 The Budget Committee and the Committee on Development Effectiveness (the Committees) met to consider the FY25 Budget Proposal and FY26-27 Indicative Budget for Interim Work Program (R2024- 0033[IDA/R2024-0034, IFC/R2024-0035, MIGA/R2024-0018]; /1). The Committees were very supportive of IEG’s proposal to align its work program and budget process with the new budget cycle over the calendar year 2024, over the proposed three stages. Members noted the significant growth in Bank lending volumes and welcomed IEG’s intent to better align its work to the priorities that are emerging from the WBG Evolution process, including the global challenges. The Committees commended and supported IEG’s $44 million budget request for FY25, with some emphasizing the importance of ensuring that IEG has sufficient resources whilst also considering cost savings to continue delivering its work program. Members expressed their continuous support for the outcome orientation and knowledge agendas and urged IEG to play a valuable role in the WBG’s Knowledge Compact for action by feeding into the Knowledge Compact in real time, contributing to the learning and to the WBG academies and by undertaking a Mid-Term Review of the Knowledge compact. IEG cautioned that their involvement in the knowledge compact could impact its ability to independently evaluate it. Members also appreciated IEG’s emphasis on staffing including the recruitment of private sector, climate and digital experts to effectively support its work program. While acknowledging that consultations on IEG’s work plan are still ongoing, members commended IEG for a thoughtful tentative work plan and appreciated its alignment with the WBG’s strategic priorities. They were pleased to learn that IEG maintains a line of sight and plans to conduct evaluations on several areas including energy access, climate and digital technology, FCV, gender and ESF. They also appreciated IEG’s flexibility to produce relevant just-in-time notes to inform the evolution process. Some members encouraged IEG to carry out evaluations on IBRD and IFC/MIGA safeguards frameworks; follow-up work on IDA PSW and non-PSW; as well as on IFC advisory projects. These requests will be further discussed during consultations between IEG and CODE members. This report is not an approved record.