IDA19 Retrospective Responding to Multiple Crises on the Road to 2030: Growth, People, Resilience FY21 — FY22  © 2023 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy, completeness, or currency of the data included in this work and does not assume responsibility for any errors, omissions, or discrepancies in the information, or liability with respect to the use of or failure to use the information, methods, processes, or conclusions set forth. 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Photos World Bank Graphic design: Karlien Truyens I Foreword Foreword The 19th Replenishment of the International Development Association (IDA19), which received donor contributions amounting to $23.5 billion out of the total $82 billion, aimed to expedite progress towards the Sustainable Development Goals (SDGs). Soon after the final replenishment meeting in December 2019, however, the World Health Organization declared a global pandemic. With a dramatically changed landscape, IDA redirected its focus to address the rapidly spreading health emergency as well as the substantial economic fallout, which was reversing decades of poverty reduction. For the first time since IDA’s inception in 1960, the cycle was shortened from three to two years to enable significant surge financing to IDA countries during the July 2020 – June 2022 period. This Retrospective reviews IDA’s delivery during what may have been its most challenging cycle to date. And it draws lessons of value for IDA’s future implementation. One such lesson is that even against a backdrop of large reversals in member countries, IDA managed to deliver results by balancing countries’ immediate needs with delivery against longer-term development priorities. For instance, with support from IDA19, more than 170 million people benefitted directly from IDA-supported safety nets; in FCS coun- tries, more than 82 million people received essential health, nutrition, and population services; and IDA delivered $25.4 billion in climate finance. In Yemen, IDA19 lessened the impact of the crisis on local households and communities by improving incomes, livelihoods, and social mobilization; in Haiti, IDA helped the government respond to emergency needs, providing access to maternal and child health services for 1.2 million women and children; and millions of students in Sierra Leone benefited from IDA-supported distance learning and return-to school interventions. These are just a few examples made possible by IDA donors’ willingness to shorten the cycle and replenish IDA20 a year early despite facing serious fiscal constraints, thereby enabling sharp increases in IDA’s annual commitments during a period of great need. At the same time, IDA19 also exposed challenges. The lack of pandemic preparedness in both IDA- and non-IDA countries at the time of the COVID-19 outbreak underscored the inadequacy of efforts to break the cycle of “panic and neglect” that followed previous viral outbreaks, such as SARS, Ebola, and Zika. Preparing the world for the next crisis will require focused efforts, even as countries face other urgent development needs. IDA is a unique global coalition that delivered at a time of extreme need, despite considerable operational constraints. The lessons from IDA19 will help further strengthen IDA and support the world to stand better prepared in future crises. It is therefore my pleasure to present the IDA19 Retrospective: Responding to Multiple Crisis on the way to 2030: Growth, People, Resilience. David Malpass President World Bank Group II Abbreviations Abbreviations Fiscal Year (FY) = July 1 to June 30 All dollar amounts are US dollars AFE Eastern and Southern Africa ECOWAS Economic Community of AfDB African Development Bank West African States AFW Western and Central Africa ERF Early Response Financing ASA Advisory Services and Analytics ESMAP Energy Sector Management Assistance ASP Adaptive Social Protection Program ATRI African Trade and Supply Chain ESF Environmental and Social Framework Finance Program EU European Union AU African Union FAO Food and Agriculture Organization BEAS Benin Electricity Access Scale-Up FCS Fragile and Conflict-Affected Situations CAT DDO Catastrophe Deferred Drawdown Option FCV Fragility, Conflict, and Violence CCDRs Country Climate and Development FMO Nederlandse Financierings-Maatschappij Reports voor Ontwikkelingslanden N.V CEN Country Engagement Notes FTCF Fast Track COVID-19 Facility CF Common Framework G&I Governance and Institutions CGD Center for Global Development GBV Gender-Based Violence COVID-19 Corona Virus Disease 2019 GCR Global Compact on Refugees CPF Country Partnership Framework GDP Gross Domestic Product CPSD Country Private Sector Diagnostics GEMS Geo-Enabling initiative for Monitoring and CRW Crisis Response Window Supervision CSO Civil Society Organizations GHG Greenhouse Gas D4P Data for Policy Initiative GP Global Practice DE4A The Digital Economy for Africa GPE Global Partnership for Education DIMC Disability Inclusion Monitoring Committee GW Gigawatt DMF Debt Management Facility GWh Gigawatt-hour DPF Development Policy Financing HCI Human Capital Index DPO Development Policy Operation HD Human Development DRM Disaster Risk Management HIV Human Immunodeficiency Virus DSEP Debt Sustainability Enhancement Program HNP Health, Nutrition, and Population DSSI Debt Service Suspension Initiative HAS Hayel Saeed Anam Group EAP East Asia and Pacific IDP Internally Displaced Persons ECA Europe and Central Asia IEG Independent Evaluation Group III Abbreviations IFC International Finance Corporation RRA Risk and Resilience Assessments IFF Illicit Financial Flows RSS Resilience Rating System ILO International Labor Organization RSW Refugee Sub-Window IMF International Monetary Fund RW Regional Window IPF Investment Project Financing SAR South Asia Region JET Jobs and Economic Transformation SARS Severe Acute Respiratory Syndrome Lao PDR Lao People’s Democratic Republic SCD Systematic Country Diagnostics LCR Latin America and the Caribbean SDFP Sustainable Development Finance Policy M&E Monitoring and Evaluation SDG Sustainable Development Goals MDB Multilateral Development Bank SDR Special Drawing Rights MIGA Multilateral Investment Guarantee Agency SME Small to Medium-sized Enterprise MNA Middle East and North Africa SPJ Social Protection and Jobs MPA Multiphase Programmatic Approach SSN Social Safety Nets MSME Micro, Small and Medium-size Enterprises SPRP Strategic Preparedness and MTR Mid-Term Review Response Program NBSAPs National Biodiversity Strategies SUW Scale-Up Window and Action Plans TA Technical Assistance NCBP Non-Concessional Borrowing Policy TAA Turn-Around Allocation NDC Nationally Determined Contribution TB Tuberculosis NGO Non-Governmental Organization TTL Task Team Leader PBA Performance-Based Allocation UN United Nations PC Policy Commitments UNDP United Nations Development Fund PCO Program of Creditor Outreach UNHCR United Nations High Commissioner PforR Program for Result for Refugees PPA Performance and Policy Actions UNICEF United Nations International Children’s PPE Personal Protective Equipment Emergency Fund WBG World Bank Group PRA Prevention and Resilience Allocation WePOWER Women in the Power Sector Network PSW Private Sector Window WFP World Food Programme RECA Remaining Engaged in Conflict Allocation WHO World Health Organization RMS Result Measurement System WHR Window for Host Communities RPRF Refugee Policy Review Framework and Refugees Abbreviations IV V Table of Contents Table of Contents Foreword I Abbreviations II List of Figures, Tables and Boxes VI Executive Summary VIII IDA19 - At a Glance XI Chapter 1. Chapter 3. IDA19 AT WORK IN A GLOBAL EMERGENCY 1 IDA19 DELIVERY TRENDS 41 1.1. Context and Original Focus of IDA19 2 3.1. The FCV Envelope 43 1.2. Impacts of the COVID-19 Pandemic 3.2. IDA19 Window Implementation 45 in IDA Countries 3 3.2.1. Crisis Response Window 45 1.3. Refocusing Resources to 3.2.2. Regional Window 47 3.2.3. Window for Host Communities Address the Emergency 4 and Refugees 49 1.3.1. Addressing the Health Emergency Using 3.2.4. Scale-up Window 51 a Multiphase Programmatic Approach 4 3.2.5. Private Sector Window 52 1.3.2. Adjustments to IDA19 4 1.4. Mitigating the Economic Fallout and Chapter 4. Protecting the Most Vulnerable 5 LESSONS LEARNED AND 1.5. IDA’s Hybrid Financial Model Was Key LOOKING FORWARD 57 to Its Decisive Response 6 4.1. Lessons from an 1.6. Accelerating the IDA20 Replenishment Extraordinary IDA19 Cycle 57 and responding to a Second Global Crisis 8 4.2. Adjustments in IDA20 62 4.3. IDA20 and Beyond 62 Chapter 2. INVESTING IN GROWTH, PEOPLE, AND RESILIENCE: 10 YEARS TO 2030 9 Endnotes 64 2.1. Overview of IDA19 Results 9 2.2. Results across IDA19 Special Themes 10 APPENDIX A. 2.2.1. Jobs and Economic Transformation 11 IDA19 Results Measurement System 67 2.2.2. Gender and Development 14 2.2.3. Climate Change 17 APPENDIX B. 2.2.4. Fragility, Conflict and Violence 20 IDA19 Policy Commitments 74 2.2.5. Governance and Institutions 23 2.3. Cross-cutting Issues 26 References 84 2.3.1. Human Capital 26 2.3.2. Debt 31 2.3.3. Disability Inclusion 34 2.3.4. Technology 35 2.4. IDA’s Operational and Organizational Effectiveness: RMS Tier 3 Indicators 36 2.5. IDA Knowledge and Partnerships 38 VI List of Figures, Tables and Boxes List of Figures, Tables and Boxes Figures Figure ES 1. IDA increased as a share of total WB lending XIV Figure ES 2. Total IDA19 commitments nearly the same as IDA18, despite shorter cycle XIV Figure ES 3. Significant increase in IDA19 financing from pre-COVID-19 average commitment XIV Figure ES 4. Share of grants in IDA total commitments increased considerably in IDA19 due to heightened debt vulnerabilities during COVID-19 XV Figure ES 5. Leverage of donor contributions has nearly doubled since IDA17 XV Figure ES 6. Nearly a 6x leverage each IDA dollar spent through Private Sector Window XV Figure ES 7. Share of IDA financing to Africa is increasing XV Figure ES 8. Total IDA19 financing to FCS countries has nearly tripled since IDA16 XVI Figure ES 9. Steady progress in staffing in FCS countries XVI Figure ES 10. IDA financing to Small States in IDA19 is growing XVI Figure ES 11. Share of IDA Climate Finance has increased, providing more in grants XVII Figure ES 12. IDA significantly scaled-up climate adaptation finance, leading other MDBs XVII Figure ES 13. While donor contributions remain stagnant, country-level actions from IDA countries for policy commitments have significantly increased XVII Figure ES 14. More than 2/3 Investment Project Financing share in total IDA19 commitments, reversing a declining trend XVIII Figure ES 15. Average disbursement increased in IDA19 compared to IDA18 XVIII Figures ES 16. ES 17. The undisbursed balances as a share of the active portfolio remains well within average despite a significant increase in the size of the portfolio, which demonstrates IDA’s implementation capacity and IDA countries’ absorptive capacity XVIII Figure 1.1. IDA borrowings and balances, as of the end of the fiscal year 7 Figure 2.1. Beneficiaries of job-focused interventions in FCS have more than doubled 11 Figure 2.2. More than fourfold increase in beneficiaries of financial services 11 Figure 2.3. IDA supported more operations to address GBV 14 Figure 2.4. Increasing share of gender-tagged operations in the IDA portfolio 14 Figure 2.5. Annual net GHG emission anticipated savings quadrupled since IDA17 17 Figure 2.6. Increased support for countries to institutionalize disaster risk 17 Figure 2.7. Grant financing for climate priorities in IDA countries increased in the last 6 years 18 Figure 2.8. Beneficiaries reached in IDA FCSs has increased from IDA18 to IDA19 20 Figure 2.9. IDA19 performance – Human capital indicators overshot 27 Figure 2.10. Beneficiaries of SSN programs have increased sevenfold since IDA17 27 Figure 2.11. Increasing Share of IDA Operations Achieve Satisfactory Outcome Ratings 36 Figure 2.12. Undisbursed balance as a share of the active portfolio on par with previous IDA cycles despite increase in portfolio size 38 Figure 3.1. Increasing share of grants in IDA total commitments 42 Figure 3.2. Most IDA countries accessed one or more IDA19 envelopes/windows 43 Figure 3.3. Share of regional IDA commitment for RW projects with a Global Public Goods focus, from FY16 to FY22 48 Figure 3.4. Board Approvals Over Time: IDA18 vs IDA19 54 Figure 3.5. IDA PSW Allocations, by FCS Status 55 Figure 4.1. IDA’s Financial Contribution to the COVID-19 Response Compared with other MDBs 59 Figure 4.2. Better Client Feedback 60 Figure 4.3. Increased country-level actions from IDA countries for policy commitments 62 VII List of Figures, Tables and Boxes Tables Table 2.1. Tier 2 and Tier 3 indicator breakdown 10 Table A.1. IDA19 RMS Indicator Performance (Tiers 2 and 3) 69 Table B.1. Delivery of IDA19 Policy Commitments 74 Boxes Box 1.1 Health and mortality impact in IDA countries of the COVID-19 pandemic 3 Box 1.2 High-level development outcome indicators show the uncertain trajectory for recovery 4 Box 2.1 Improving outcomes for youths and firms through dual apprenticeship 12 Box 2.2 Addressing the regional dimensions of fragility 22 Box 2.3 Burkina Faso: Opting for debt transparency to lower borrowing costs 24 Box 2.4 Leveraging Civil Society and Citizen Engagement 25 Box 2.5 IDA’s response: Strategic preparedness and response program using a Multiphase Programmatic Approach 29 Box 2.6 Limiting learning loss in Sierra Leone 30 Box 2.7 Adjustment to the Ethiopia Urban Productive Safety Net 31 Box 2.8 Pilot Program of the Creditor Outreach in Uganda – Coordinated, country-level action as key to addressing debt vulnerabilities 33 Box 2.9 The World Bank’s Digital Economy for Africa Initiative and IDA19 35 Box 2.10 Examples of IDA19 projects that benefited from impact evaluation evidence 39 Box 3.1 Prevention and partnership in Mozambique 44 Box 3.2 Early intervention in CAR reaches more than 300,000 farmers 47 Box 3.3 World Bank/UNHCR strengthened partnership for addressing forced displacement 49 Box 3.4 Benin Electricity Access Scale-up project: To increase access to electricity services for households, enterprises, and public facilities 51 Box 3.5 Programs Established During IDA19 - Using Platforms to Scale Impact 54 Box 3.6 Support for the Financial Sector 55 Box 3.7 PSW supported investments in FCS countries: Hayel Saeed Anam Group Foods 56 Box 4.1 WBG Evolution Roadmap 63 VIII Executive Summary Executive Summary This Retrospective reviews the 19th Replenishment of After the immediate COVID-19 response, IDA the International Development Association (IDA19). Participants and Management came together to With $23.5 billion in donor contributions, the $82 billion endorse historic adjustments to IDA19 to meet the IDA19 replenishment was initially designed to accelerate needs of IDA countries in crisis. These adjustments bol- progress toward the Sustainable Development Goals stered the pandemic response, while retaining IDA’s core (SDGs). IDA Participants held their final Replenishment commitments. For the first time in IDA’s history, and citing Meeting in December 2019, when the first signs of an IDA’s uniquely effective platform, stakeholders endorsed impending global pandemic were barely discernable. a recommendation to launch the IDA replenishment one The context soon changed dramatically, and the World year early, shortening the IDA19 cycle from three to two Health Organization (WHO) declared the novel corona- years. The adjustments made an additional $16 billion virus (COVID-19) a global pandemic on March 11, 2020, available to aid IDA countries’ responses to COVID-19 just months before IDA19 was set to begin. in FY21 and FY22. The IDA19 financing envelope was adjusted from $82 billion to $71 billion, with $11 billion During the cycle, the World Bank Group (WBG), in- transferred to IDA20. The overall structure of IDA’s Results cluding IDA, responded rapidly and at scale as part- Measurement System (RMS) and the policy commitments ner countries grappled with the consequences of (PCs), agreed in support of IDA19’s five Special Themes, COVID-19. On March 3, 2020, the Board of Executive was retained. To better reflect the compressed imple- Directors endorsed the WBG’s urgent action to support mentation period and new priorities, expected ranges/ IDA and IBRD countries’ responses to COVID-19. The values for 16 of 20 Tier 2 RMS indicators, and targets for Board agreed to establish a WBG Fast Track COVID-19 15 of 44 PCs were also adjusted. Facility (FTCF) with financing from IDA, IBRD and the International Finance Corporation (IFC) for health re- IDA provided record new commitments of $75 bil- sponses and vaccines that ultimately reached $34 billion. lion to help countries address urgent needs while IX Executive Summary delivering on longer-term development priorities. essential health, nutrition, and population (HNP) services. Average annual commitments increased sharply, and And IDA delivered $25.4 billion in climate finance. Sixty total commitments over the two-year period were nearly percent of this funding, or $15.2 billion, supported ad- equivalent to the commitments made in the three-year aptation, a marked contrast to the estimated 7.5 percent IDA18 cycle. Undisbursed balances as a share of the of global climate finance dedicated to adaptation. Job active portfolio remained well within historical averages focused interventions and improved access to elec- despite the increased portfolio size, demonstrating both tricity and water benefitted tens of millions of people. implementation and absorptive capacity. Disbursements IDA also continued to invest in five Special Themes: over the two-year period totaled $44.1 billion, delivering Jobs and Economic Transformation (JET); Gender and tangible results for people in need. IDA’s surge enabled Development; Climate Change; Fragility, Conflict and partner countries to continue delivering essential ser- Violence; and Governance and Institutions (G&I), and vices and advancing development priorities, even as they systematically addressed priority issues of human capital, responded to COVID-19 and other challenges. In addi- debt, disability inclusion and technology, through newly tion, IDA’s $1.7 billion commitment to the Private Sector introduced Cross-cutting Issues. With considerable effort Window (PSW) mobilized $8.2 billion in investments from by clients and WBG staff, most of the policy commitment the IFC, the Multilateral Investment Guarantee Authority targets – about 80 percent – were either met or exceeded. (MIGA) and third parties to support private sector invest- Human capital receives special attention in this report, ments in IDA countries. given the impact of the pandemic in this area. Similarly, a Mid-Term Review (MTR) of the Sustainable Development IDA directed financing to areas of need. IDA con- Finance Policy (SDFP) accompanies this Retrospective, tinued to increase the share of funding delivered to reviewing IDA’s support for the increasingly important countries in Africa, which received 71 percent of com- area of debt sustainability. mitments ($53 billion) during the cycle. In line with the WBG Strategy for Fragility, Conflict and Violence (FCV), The cycle underscored valuable lessons about IDA’s IDA also increased the resources available to fragile and core strengths. IDA19 underscored IDA’s core strength conflict-affected situations (FCS), including through the in financing long-term priorities while promoting invest- newly introduced FCV Envelope. FCS countries received ments that respond to emerging global challenges. As a 41 percent of IDA19 commitments ($30.5 billion), nearly convening platform, IDA successfully engaged borrowing tripling the commitments for FCS countries relative to and donor countries to identify solutions, take meaning- IDA16. Commitments to small states also nearly tripled ful action, and track progress together to address global compared to IDA16, reaching record highs in IDA19 challenges that included the pandemic at the beginning ($2.5 billion). Most commitments were made through of the cycle and the economic consequences of Russia’s country allocations. IDA windows complemented the invasion of Ukraine in the final months of the two-year country allocations with supplemental finance for global period. The cycle demonstrated IDA’s capacity to de- priorities such as regional investments, crisis response, liver in difficult circumstances, including severe logistical investments for refugees and host communities, trans- challenges. formational investments and incentives for private sector investment. IDA employed its reallocation mechanism But IDA19 also exposed delivery challenges. The lack during the cycle to reallocate a total of $7.4 billion to fi- of pandemic preparedness in both IDA- and non-IDA nance priority areas and urgent needs such as COVID-19 countries at the time of the COVID-19 outbreak un- vaccination efforts, food insecurity and natural disasters. derscored that efforts to break the cycle of “panic and neglect” that followed previous viral outbreaks (such as Even against a backdrop of significant development SARS, Ebola, and Zika) were inadequate. Preparing the reversals in member countries, IDA delivered results world for the next outbreak will require intentionality and sustained progress on development priorities. even at times when no pandemic rages and other devel- IDA financing delivered results both in crisis response opment needs are urgent. Finally, over successive cycles, and in other priority areas, notably with respect to climate IDA has adopted an increasingly complex policy package change. IDA’s RMS tracked outcomes, demonstrating the and architecture. This has helped IDA target key devel- reach and scale of this effort. More than 170 million peo- opment gaps but can limit its flexibility to accommodate ple benefitted directly from IDA-supported safety nets. shifts in client demand, including in the face of unex- In FCS countries, more than 82 million people received pected emergencies. IDA19 amplified the challenge. X Executive Summary As it moves ahead, IDA will need to continue balancing This report highlights achievements and lessons from refinements to its policy package and architecture with the extraordinary cycle. The Retrospective is orga- the country leadership and flexibility that remain central nized around six sections. “IDA at a Glance” follows this to its operational model. Executive Summary and summarizes key data from the cycle. Chapter 1 reviews the context of IDA19, including Looking ahead, financing needs of IDA countries will the crises that bookended its implementation, and out- remain high. Progress eradicating extreme poverty and lines how IDA responded. Chapter 2 reports on results achieving the Sustainable Development Goals is off and policy commitments, offering illustrative examples of track, driven not only by the pandemic but by climate IDA at work. Chapter 3 describes how IDA’s architecture change and growing fragility, among other challenges. complemented country allocations with financing for key Many IDA countries are seeing reductions in public ex- priorities. Chapter 4 reflects on the emerging lessons penditures at a time when they need to invest more to from the cycle, including those that are shaping the on- recover lost ground. IDA countries increasingly face risks going implementation of IDA20. Appendices provide of debt distress and will continue to require substantial detailed reporting on IDA’s Results Management System, external sources of finance, including from IDA, as they policy commitments, and window financing. In initial dis- work to recover, rebuild, and achieve long-term devel- cussions about their interests and priorities for this report. opment goals. At the same time, as global public goods come into sharper focus, IDA will be expected to do even IDA Deputies expressed a strong interest in a more. IDA’s hybrid financial model has doubled the lever- Retrospective that reflected candidly on the Bank’s age of donor financial contributions since IDA17 and can experience of delivery during this exceptional cycle. continue to enhance contributions to future replenish- To respond to that interest, insights of task team leaders ments but cannot address all needs. IDA factors risks of (TTLs), World Bank Group staff who work closely with cli- debt distress into determinations of eligibility for grant ents to prepare and support the implementation of IDA- financing. Grant financing relies on donor contributions. financed operations, complement the reporting through- As risks of debt distress and fragility increase, grants as out the report. As front-line staff, TTLs had a close-up a share of IDA commitments have also risen over time, view of the WBG’s pandemic response. Together with increasing the importance of donor contributions. insights from IDA clients and beneficiaries, the TTLs’ ob- servations powerfully illustrate the unique experiences of implementing IDA19. XI IDA19 - At a Glance IDA19 - At a glance Glance Overview 606 Credits $49.6 B $75 B 66% Total Grants $25.4 B Operations Total IDA19 34% Commitments1 Total IDA19 Commitments incl. the Private Sector Window $76.7 B 56 74 IDA-only and Gap countries 14 IDA Eligible Blend countries Countries 4 Others FY21 FY22 FY22 Fragile and Conflict-affected 34 32 Small States 21 Situations (FCS) Countries 3 Exceptional countries Moldova, Mongolia, Ukraine 0 IDA graduates 3 Reclassified countries Cambodia, Mauritania, Senegal 1. Throughout At a Glance, total commitments exclude the Private Sector Windows (PSW) unless otherwise noted. 2. Eritrea, Syrian Arab Republic, and Zimbabwe, that are in non-accrual status, and Myanmar due to suspension of operations. 3. FCS refer to countries on the World Bank Group Harmonized Lists of Fragile Situations in the corresponding fiscal years. 4. Small States refer to countries with population of 1.5 million or less (as of FY22, 21 IDA countries). XII IDA19 - At a Glance Commitments By region and top 10 largest recipient countries AFE AFW SAR ECA EAP LAC MNA 40% 31% 16% 5% 4% 2% 2% $29.9 B $23.2 B $12 B $3.9 B $2.8 B $1.8 B $1.5 B 9. 1. 6. 10. 8. 7. 5. 3. 4. 2. Niger Nigeria Democratic Uganda Tanzania Mozambique Kenya Ethiopia Pakistan Bangladesh $2.8 B $5.3 B Republic of $2.5 B $2.8 B $2.9 B $3.6 B $4.4 B $4.0 B $5.0 B Congo $3.6 B By sector By financing windows Climate finance Social Sector (Education, Health, Social Protection) Regional Window 34%, $25.2 B $5.9 B Infrastructure (Energy, ICT, Transport, Water, Waste) Crisis Response Window $2.1 B $25.4 B Window for Host Communities Total IDA19 30 %, $22.3 B climate finance & Refugees Public Administration 16%, $12.3 B $1.3 B Agriculture 10%, $7.4 B Scale-Up Window $3 B Industry, Trade & Services 6%, $4.6 B Private Sector Window Adaptation Financial Sector 4%, $3.3 B $1.7 B 60%, $15.2 B By lending instrument Disbursement Investment Project Financing (IPF) 74%, $55.5 B Development Policy Financing (DPF) 14%, $10.4 B $44.1 B Total IDA19 disbursement Program-for-Results (PforRs) $22.9 B $21.2 B 12%, $9.1 B FY21 FY22 XIII IDA19 - At a Glance IDA19 Outcome Highlights (FY21-FY22) 60% of IDA19 climate finance used for adaptation Climate change 32 million tCO2eq/year anticipated reduction in greenhouse gas emissions 8 million female beneficiaries of job-focused interventions Gender 93% of IDA19-financed operations aimed at closing gender gaps 27 million beneficiaries of job-focused Jobs & economic interventions in IDA countries transformation 19 million beneficiaries reached with financial services 12 million people provided with new or improved electricity service in FCS Fragility, conflict & violence 82 million people have received essential health, nutrition, and population services in FCS 16 million people with access to improved water sources 170 million Human people benefitting from safety nets capital 24 million people with new or improved electricity service 114 million women and children receiving basic nutrition services Note: IDA19 RMS data includes FY21 and FY22 results XIV IDA19 - At a Glance IDA19 Financing Delivery Trends Figure ES 1. IDA increased as a share of total WB lending 80 54% 70 60 Commitments, US$ billion 50 40 30 20 10 14% 0 FY61 FY62 FY63 FY64 FY65 FY66 FY67 FY68 FY69 FY70 FY71 FY72 FY73 FY74 FY75 FY76 FY77 FY78 FY79 FY80 FY81 FY82 FY83 FY84 FY85 FY86 FY87 FY88 FY89 FY90 FY91 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 IDA0 IDA1 IDA2 IDA3 IDA4 IDA5 IDA6 IDA7 IDA8 IDA9 IDA10 IDA11 IDA12 IDA13 IDA14 IDA15 IDA16 IDA17 IDA18 IDA19 IDA IBRD Replenishment average IDA’s share of total World Bank’s lending Figure ES 2. Figure ES 3. Total IDA19 commitments nearly the Significant increase in IDA19 financing from same as IDA18, despite shorter cycle pre-COVID-19 average commitment 90 40 37.7 +90% 80 35 Total IDA Commitments, US$ billion Total IDA Commitments, US$ billion 70 30 Pre-pandemic (FY13-FY19) Average commitment $20 B 25 60 20 50 36.1 75.0 76.4 15 30.4 40 22.2 24.0 54.6 21.9 10 19.0 19.5 30 53.3 14.8 16.3 16.2 44.8 5 20 32.6 0 10 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 IDA16 IDA17 IDA18 IDA19 0 Note: FY22 do not include four IDA19 projects that were approved in FY23 for IDA14 IDA15 IDA16 IDA17 IDA18 IDA19 $1.2b and make up a total IDA19 envelope of $75b (excluding PSW). XV IDA19 - At a Glance Figure ES 4. Share of grants in IDA total commitments increased considerably in IDA19 due to heightened debt vulnerabilities during COVID-19 100 100% 80 80% Share of Grants, % US$ billion 60 60% 40 40% 34% 20 27% 20% 14% 13% 0 0% IDA16 IDA17 IDA18 IDA19 Grant Credit & Guarantee Share of Grants Figure ES 5. Leverage of donor contributions has nearly doubled since IDA17 80 60 x3.5 US$ billion x3.3 40 x2 83 75 52 20 26 23 24 0 IDA17 IDA18 IDA19 Partner Grant Contributions (Excl. MDRI) Total Replenishment Note: Donor contributions are in nominal dollar terms. IDA19 replenishment envelope increased from $82 (agreed replenishment amount) to $83bn, with the additional $1bn going towards exceptional Figure ES 7. financing for Ukraine operation. Share of IDA financing to Africa is increasing Figure ES 6. 100% Share of Total IDA Commitments, % Nearly a 6x leverage each IDA dollar spent 90% through Private Sector Window (PSW) 80% 10 70% x5.8 9.9 60% Leverage 8 50% 71% 64% 40% 50% 54% 49% 48% US$ billion 6 30% 20% 4 4.9 10% 3.3 0% 2 IDA14 IDA15 IDA16 IDA17 IDA18 IDA19 1.7 South Asia (SAR) Latin America & the East Asia & Caribbean (LAC) Pacific (EAP) 0 IDA- IFC & Other Private Total Middle East & Europe & Africa (AFR) PSW MIGA Funding Financing North Africa (MNA) Central Asia (ECA) XVI IDA19 - At a Glance Figure ES 8. Total IDA19 financing to FCS countries has nearly tripled since IDA16 Share of IDA commitments to FCS, % 35 41% 50% IDA commitments to FCS, US$ billion 30 40% 25 30% 20 30% 24.9 15 19% 17.6 20% 14% 10 8.0 10% 5 6.2 5.4 5.6 0 1.5 2.1 0% IDA16 IDA17 IDA18 IDA19 IDA windows PBA Share of total IDA commitments to FCS countries Figure ES 9. Steady progress in staffing in FCS countries 800 700 (in IDA staffing measure) Number of Staffs in FCS 738 600 650 500 400 300 200 100 0 July 2020 Q4 2022 Start of IDA19 End of IDA19 Note: The number of staffing in FCS countries, which was affected by the pandemic and political disruptions, has steadily increased to 747 in FY23 Q2. Figure ES 10. IDA financing to Small States in IDA19 is growing 3,000 4% 3.4% IDA commitments to Small States 2,500 3.0% Share of IDA commitments 513 3% to Small States, % 2,000 456 US$ million 1,500 2% 2,015 1.4% 1,819 1.2% 1,000 1% 207 309 500 446 481 0 0% IDA16 IDA17 IDA18 IDA19 PBA IDA windows Share of total IDA commitments to Small States XVII IDA19 - At a Glance Figure ES 11. Share of IDA Climate Finance has increased, providing more in grants 40 6 A 500% increase in grants to Commitments, US$ billion IDA countries in the last 6 years 5 Grants, US$ billion 30 4 20 3 37% 2 10 31% 14.3 17% 22% 31% 1 2.7 28% 32% 9.3 11.1 4.3 6.8 6.9 0 0 FY16 FY17 FY18 FY19 FY20 FY21 FY22 IDA climate finance Total IDA commitments IDA climate finance in grants Figure ES 12. IDA significantly scaled-up climate adaptation finance, leading other MDBs 8,000 IDA19 (FY21-22) Total Climate IDA Adaptation Finance $15.2B IADB 6,000 EIB US$ million AfDB 4,000 AsDB AIIB 2,000 EBRD IsDB - 2015 2016 2017 2018 2019 2020 2021 IDA17 IDA18 IDA19 Note: 2015-2021 data from Joint MDB Climate Finance Report shows adaptation finance in all economies where MDBs operate; World Bank IDA uses FY and MDBs use CY; IDA19 (FY21-FY22) total climate adaptation finance is $15.2B. However, the graph excludes IDA's FY22 data for comparable comparison with other MDBS which FY22 data are not yet available. Figure ES 13. While donor contributions remain stagnant, country-level actions from IDA countries for policy commitments have significantly increased Number of Country-Level Actions 29 1011 1000 28 x2 27 800 US$ billion 26 26 510 600 x2 25 248 400 24 23.5 24 120 23 x2 200 22 23 0 IDA17 IDA18 IDA19 IDA20 IDA Donor Contribution Country-Level Actions from Policy Commitments Note: Donor contributions are in nominal dollar terms. Country-level actions are those taken by IDA clients as part of country programs, as agreed in policy commitments. These typically include IDA support for investments, analytics, policy frameworks, or strategies. Policy commitments for which the number of country-level actions are uncertain (for example, 35% of infrastructure projects) and for co-benefits are counted as zero. IDA actions (for example, adjustments to Bank guidance) are counted as zero. XVIII IDA19 - At a Glance Figure ES 14. More than 2/3 Investment Project Financing (IPF) share in total IDA19 commitments, reversing a declining trend 100 100% 84% Commitments, US$ billion 78% 68% 74% Share of total IDA 50 50% 19% 14% 12% 12% 4% 10% 13% 12% 0 0% IDA16 IDA17 IDA18 IDA19 Investment Project Financing (IPF) Development Policy Financing (DPF) Program for Result (PforR) Program for Result (PforR) Investment Project Financing (IPF) Development Policy Financing (DPF) Figure ES 15. Average disbursement increased in IDA19 compared to IDA18 25 82% 100% 80% 20 80% Share of IDA Total US$ billion 15 63% 64% 60% 10 40% 25% 23% 18% 15% 5 20% 0% 5% 12% 13% 0 0% IDA16 IDA17 IDA18 IDA19 Investment Project Financing Development Policy Financing Share of PforR Program for Results Share of IPF Share of DPF Figures ES 16. ES 17. The undisbursed balances as a share of the active portfolio remains well within average despite a significant increase in the size of the portfolio, which demonstrates IDA’s implementation capacity and IDA countries’ absorptive capacity 40 120 70% 63% 63% 63% Total Undisbursed Balances, US$ billion 60% 60% 60% Undisbursed Balances as Percent 58% 100 56% 57% 57% 56% 60% 30 of Project Portfolio 50% US$ billion 80 20 40% 60 99 30% 10 91 40 76 70 70 20% 54 53 55 60 20 43 46 0 10% FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 0 0% FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 IDA16 IDA17 IDA18 IDA19 IDA16 IDA17 IDA18 IDA19 IDA Commitments IDA Undisbursed Balance IDA Disbursements Undisbursed Balances as Percent of Project Portfolio 1 IDA19 AT WORK IN A GLOBAL EMERGENCY Chapter 1. IDA19 AT WORK IN A GLOBAL EMERGENCY The 19th Replenishment of the International Development government services and halting a deadly pandemic, and Association (IDA19) is unique in IDA’s history. The replen- between immediate financing needs and longer-term ishment was designed to help meet the global ambitions debt sustainability. In this changed context, IDA adapted of the Sustainable Development Goals, with 10 years its program of support to continue serving as a major ex- remaining to 2030. The outbreak of the COVID-19 pan- ternal financier for many countries in need. By providing demic made a sharp change in focus necessary. As IDA surge financing, IDA helped soften trade-offs between countries faced extraordinary new challenges, IDA took long-term development needs and emergency response. unprecedented steps to accelerate its response, includ- “ ing adjusting priority areas of focus, accelerating time- lines, and increasing the volume of support. For the first time since IDA’s inception in 1960, the implementation I was involved in three projects when the cycle was shortened to two years, making an additional pandemic started. I was stuck in one country the $16 billion available to IDA countries at a time of urgent and widespread need. first five or six months and could not travel back to Washington, D.C. where my family lives, nor This Retrospective reviews how IDA19 delivered in the to the other two project countries. The situation context of multiple, compounding crises, including the was the same for my team and clients. COVID-19 pandemic, unfolding conflicts, and increasing - Poverty and Equity TTL ” impacts of climate change. IDA countries were forced to make difficult trade-offs between preserving essential 2 IDA19 AT WORK IN A GLOBAL EMERGENCY “ We put together a restructuring paper to 1.1. Context and Original Focus of IDA19 support local governments, already beneficiaries With $23.5 billion in donor contributions, the $82 billion of the ongoing project, in strengthening their IDA19 replenishment initially aimed to help IDA coun- capacity to handle emergency response, tries close gaps in SDG achievement. It adopted the overall theme of “Ten Years to 2030: Growth, People, developing communication tools at the local Resilience.” At the time of replenishment negotiations level, fast tracking alternative educational from 2018 to 2019, IDA countries’ progress against im- arrangements, and procuring and delivering portant development indicators was evident. Decades basic hygiene kits, including items like masks, of institution strengthening—policies, systems, and gloves, and disinfecting gels to prevent the capabilities—in partner countries, including with IDA disease from spreading. It was crucial to do this support, helped governments improve and expand es- in the first few months of the pandemic. sential services. As a result, IDA countries had seen key development indicators in health, education, and eco- – Governance TTL ” nomic empowerment rise steadily. IDA countries were also investing in renewables and their own adaptation and resilience to climate change. The Retrospective also considers how IDA can best sup- At the same time, the steady fall in global poverty rates port countries to respond to future crises. What worked had slowed, with poverty increasingly concentrated well in the face of compounding crises and what did in Sub-Saharan Africa. Violent conflict, severe forced not? Did IDA manage to serve clients despite the opera- displacement crises, and natural disasters were com- tional challenges, including severe mobility restrictions? pounding challenges. In IDA countries in fragile and con- How did IDA’s convening role contribute to the global flict-affected situations, the absolute number of poor had response to urgent needs? Does the IDA model offer increased to 279 million people in 2019, from 251 million enough flexibility to address unexpected crises, even people in 2015. IDA countries continued to struggle to as more innovations in IDA18 and IDA19 have led to an create the jobs required to meet the needs of young increasingly fixed and complex IDA setup? Did the inno- women and men, including those with disabilities, and vations of IDA19, such as the FCV Envelope, the Crisis had seen limited or no progress on the rates for maternal Response Window’s (CRW’s) Early Response Financing mortality and gender-based violence (GBV). After years (ERF), and the intensive efforts to address public debt of decline, hunger was on the rise. The Inter-Government vulnerabilities through the Sustainable Development Panel on Climate Change warned that the world was Finance Policy, help support the responses? The IDA19 failing to reduce global warming to 2°C. These threats Retrospective probes these questions, drawing on the risked rolling back hard-won development gains in IDA October 2022 IDA19 Implementation and Delivery re- countries, which are disproportionately susceptible to cli- port, IDA’s Results Measurement System, financial de- mate risks. To compound the challenges, the risk of debt livery data, policy commitments, Special Themes and distress had increased, making many IDA countries more Cross-cutting Initiatives, as well as evaluations by the vulnerable to shocks, and less able to borrow sustainably World Bank Group’s Independent Evaluation Group (IEG), to meet development needs. IDA19’s policy package and the observations of staff and client representatives. aimed to deepen work on key constraints to economic and social development. The work was organized around five Special Themes: Jobs and Economic Transformation; Gender and Development; Climate Change; Fragility, Conflict, and Violence; and Governance and Institutions. IDA Deputies held their final IDA19 replenishment meet- ing in December 2019, when the first signs of an im- pending global pandemic were barely discernable. Initial reports of patients experiencing symptoms later identi- fied as Corona Virus Disease 2019 (COVID-19) emerged 3 IDA19 AT WORK IN A GLOBAL EMERGENCY during the week of the final IDA19 Replenishment Meeting. The World Health Organization declared COVID-19 a Public Health Emergency of International Concern in January 2020 and declared a pandemic in March 2020. The devastating effects of the outbreak and of the ensuing lockdowns became clear in the following months, underscoring the urgent need to enhance coun- tries’ ability to stage effective responses. The pandemic also amplified vulnerabilities related to debt, human cap- ital, disability, and technology, as well as gaps related to jobs, gender, climate change, fragility, and governance. In this context, IDA doubled down on efforts to close Box 1.1 Health and mortality impact in pre-COVID-19 structural gaps and address crises related IDA countries of the COVID-19 pandemic to climate change, natural disasters, conflict, and food As of February 20, 2023, over 11.44 million COVID- insecurity, while urgently taking on the new challenges 19 cases and 192,557 deaths due to COVID-19 had presented by the pandemic. occurred in IDA countries. The COVID-19 incidence rate in IDA countries has varied widely. As of February 20, 2023, average incidence of COVID-19 infection in 1.2. Impacts of the COVID-19 IDA countries was 6,300 cases/million population, Pandemic in IDA Countries with incidence much higher in some countries, such as Nepal (32,772 cases/million population). Incidence As IDA countries suddenly faced significant uncertainty rates can change rapidly depending on factors includ- in the face of the COVID-19 pandemic, the context ing the emergence of new variants, vaccination rates, for IDA19 implementation changed dramatically. The and testing. situation deteriorated rapidly in 2020. The pandemic The overall death rate from COVID-19 infection in IDA challenged health systems in IDA countries and beyond, countries is 1.68 percent, but it varies widely by coun- while associated lockdowns and travel restrictions up- try. Yemen has the highest death rate at 18.07 percent, ended normal life for most people, leaving billions of followed by Sudan, Syria, and Somalia. Factors influ- lives and livelihoods under threat. The crisis amplified encing the death rate include age, health status, existing inequalities faced by women, informal workers, access to health care, and public health measures. and other vulnerable groups. IDA countries’ hard-earned Data collection and reporting systems in several IDA development gains quickly eroded against a backdrop countries are weak, leading to the likely underesti- of declining per capita income, pushing more than 70 mation of deaths. WHO estimates excess deaths in million people into extreme poverty by the end of 2020 IDA countries at 1.63 million as of May 2022, with and increasing the global total to more than 700 million1. countries such as Pakistan, Nigeria, Bangladesh, the Democratic Republic of Congo (DRC), and Ethiopia having among the highest number of excess deaths. The outbreak had severe human consequences in IDA countries and beyond. As the pandemic hit, countries The COVID-19 pandemic has caused severe disruptions across the world saw increased illness and mortality, and to routine immunization services in many low-income health systems globally came under strain, exposing weak- countries, including IDA countries. As of July 2022, an nesses and lack of preparedness. IDA countries also saw estimated 25 million children globally had missed out serious secondary consequences, as people were unable on routine vaccinations due to the pandemic. to access essential care for long periods of time. Millions of children faced reductions in health care, including miss- opportunities led to significant further losses, putting the ing critical vaccines. They also faced more stress in their achievement of SDG4 in jeopardy.2 In Uganda, where care environments—orphanhood, domestic violence, schools were closed for two full years, the share of young suboptimal nutrition—which led to declines in social and students who could not read the letters of the alphabet emotional development and school readiness. Countries doubled between 2018 and 2021.3 And when schools across the globe closed schools to combat the pandemic, reopened, learning did not return to the pre-COVID-19 resulting in large and sharply unequal learning losses. pace. For example, Malawi’s schools closed for seven Learning poverty in IDA countries was already high be- months, with test scores indicating that the closures in fact fore 2020, but school closures and poor remote learning led to an estimated learning loss of 18 months.4 4 IDA19 AT WORK IN A GLOBAL EMERGENCY Even as IDA countries grappled with the health crisis, 1.3. Refocusing Resources to they also had to contend with the consequences of lock- downs, including reversals of hard-won gains in poverty Address the Emergency reduction and the SDGs. As the effects of the pandemic and of compounding crises unfolded during 2020, IDA 1.3.1. Addressing the Health countries saw a sharp drop in Gross Domestic Product Emergency Using a Multiphase (GDP) (Box 1.2). These shocks impacted poor people the Programmatic Approach (MPA) hardest, because of the vulnerability associated with where they live, what they consume, what they do for a On March 3, 2020, the Board of Executive Directors en- living, and what little savings and assets they hold. The dorsed the WBG’s urgent action to support IDA and IBRD pandemic and its effects contributed to widespread in- countries’ response to the pandemic. The Board autho- creases in extreme poverty in IDA countries, making the rized the establishment of a WBG Fast Track COVID 19 goal of reaching 3 percent global poverty by 2030 in- Facility, subsequently followed by an Additional Financing creasingly distant. for COVID 19 vaccines, bringing the total funds available for the WBG’s COVID health response to $34 billion, including an IFC contribution of $8 billion. The Facility adopted a MPA to implement the COVID-19 Strategic Box 1.2 High-level development outcome Preparedness and Response Program (SPRP). To speed indicators show the uncertain delivery, the Board granted Management the authority trajectory for recovery to approve country operations with Environmental and Social Framework (ESF) ratings below “High” and with As of 2021, IDA countries have seen declines in financing under $100 million. This arrangement, com- economic well-being and human capital compared to bined with a range of other operational flexibilities ad- pre-pandemic levels. The annual rate of real GDP per capita growth dipped significantly in 2020 following opted to speed the response, enabled IDA to help fund the onset of the crisis. It made a recovery in 2021, a rapid response to the pandemic together with national but only to near-pre-pandemic levels. In IDA FCS budgets and other development partners. countries, neither the annual growth rate of real GDP per capita nor the GDP per person employed had 1.3.2. Adjustments to IDA19 recovered to pre-pandemic levels. Compared with pre-pandemic data, the youth employment to popu- In April 2021, IDA Management and Participants came lation ratio also declined in 2021 for IDA countries. together to advance the IDA20 replenishment to respond Disaggregated data show that this downturn particu- to extraordinary needs. After extensive consultations,5 the larly affected females and youth in FCS countries. The April 2021 meeting endorsed—for the first time in IDA’s his- human toll of conflict and violence has continued to tory—a recommendation to shorten IDA’s replenishment grow. Numbers of refugees and internally displaced period from three to two years. The early replenishment persons (IDPs) have grown steadily over the past three years. Global growth is expected to decelerate, and meant that an additional $16 billion originally planned for economic progress in IDA countries remains fragile. use in FY23 became available for use in FY21 and FY22. The decision reflected, and built upon, the strength of Note: Due to time lags in data collection, 2022 data are not yet available for some Tier 1 indicators in the RMS. IDA’s balance sheet and the flexibility of IDA’s hybrid fi- nancial model that can consolidate global resources from donors and capital markets to support focused country programs and development spending.6 IDA increased country allocations, adjusted the FCV Envelope, and re- sized several IDA windows. The overall financing envelope for IDA19 was adjusted from $82 to $71 billion, with the remaining $11 billion transferred to IDA20. The CRW contributed $148 million to the World Bank’s Fast-Track COVID-19 Facility, supplementing the $1 billion that had been contributed through the CRW in IDA18. Participants also endorsed Management’s recommendation not to graduate any country at the end of IDA19.7 5 IDA19 AT WORK IN A GLOBAL EMERGENCY To respond to changing needs, IDA reallocated $7.4 bil- lion to pressing priorities over the two-year cycle.8 About $5.8 billion,9 or nearly 80 percent, of this amount was re- directed through intra- and inter-regional allocations of country performance based allocations. About $1.6 bil- lion, just over 20 percent, was redirected from IDA win- dows and other sources.10 Reallocations aligned with corporate priorities, including support for climate co-benefits, for FCS countries, and for Small States, and prioritized urgent needs such as financing for COVID-19 vaccination, food insecurity and natural disasters. “ COVID-19 has proven how teams within and across global practices and central units can work together to solve what could feel like insurmountable challenges in times when crisis does not knock on the door. - Health TTL 1.4. Mitigating the Economic ” IDA retained all policy commitments and results priorities Fallout and Protecting the Most Vulnerable The adjustments made to IDA19 in April 2021 signifi- originally agreed at replenishment, and calibrated targets cantly accelerated IDA’s crisis response. While the pan- to reflect the compressed delivery period. The shortened demic compounded the major challenges that low-in- IDA cycle, shifting priorities, and mobility restrictions come and FCS countries already faced, IDA’s response, affected what IDA could deliver. Without changing the firmly anchored in the support provided over successive overall structure of IDA’s Results Measurement System IDA cycles contributed to global efforts to mitigate the or the policy commitments, some targets were adjusted. severity of the impacts. Using the new MPA and IDA’s In the RMS, expected ranges/values for 16 of 20 Tier 2 surge financing, IDA countries shored up their emer- indicators were adjusted, along with one of the 26 Tier gency health responses, and took steps to address the 3 indicators.11 Targets for 15 of 44 policy commitments severe economic contraction caused by the lockdowns. were adjusted: three linked to the Jobs and Economic Transformation Special Theme, two for Gender and Development, three for Climate Change, three for Fragility Conflict and Violence, and four for Governance and Institutions.12 Most adjusted targets were achieved, “ The World Bank intervened as soon as and a number were exceeded. Some made considerable possible and as best as it could to contain progress but were just short of targets at the close of the disease. Benin did not have enough IDA19. Details are discussed in Chapter 2 and presented intensive care beds. The need became more in Appendices 1 and 2. pronounced with the advent of COVID-19 but, very quickly, this gap was filled. - Director, Emergency Medical Assistance Service (Samu-Benin). ” 6 IDA19 AT WORK IN A GLOBAL EMERGENCY IDA19 expanded the reach of its human capital programs The World Bank also conducted frequent household for the most vulnerable. Sharply heightened demand led phone surveys to help monitor pandemic impacts and IDA to double its human capital support compared with target support to those in need. The surveys aimed to the 10-year period before. Programs were repurposed gather critical information about the pandemic’s impact and reprioritized to address emergencies. IDA’s efforts on households, including health, employment, and ac- helped cushion setbacks by strengthening health sys- cess to basic services such as food and social safety nets tems’ delivery capacity, and by providing resources for (SSN). Conducting regular surveys enabled the World intensive care, isolation, and treatment centers for Bank to better track changes in household conditions COVID-19 patients, and for the procurement of personal and respond to emerging needs. Data collected from the protective equipment (PPE). Education programs re- surveys helped inform policies and programs to address sponded to the crisis to enable virtual learning during the pandemic’s impacts and assess the effectiveness of school closures – even as the constraints to remote learn- these measures. ing quickly became evident along with the need to build much more resilient education systems. 1.5. IDA’s Hybrid Financial Model Was Key to Its Decisive “ The three projects I was involved in had a small Response IDA19 built on the momentum of the hybrid financing subcomponent dedicated to innovation. When framework introduced in IDA18. IDA’s financing model the pandemic hit, our GP initiated a global effort has evolved through the years, seeking to stretch donor to collect information on the pandemic and how contributions and maximize development assistance it affected different countries. We leveraged to IDA countries. IDA18 introduced a hybrid financing model and completed IDA’s inaugural bond issuance. those subcomponents to carry out data These achievements, together with IDA’s accumulated collection. In all three countries we covered, capital and new contributions in IDA19, meant that IDA we designed and implemented monthly phone could continue to access capital markets during the cycle. surveys that were directly financed by IDA. This is a big result of this project, as these countries During IDA19, IDA’s market acceptance and access accel- did not have the system in the past. erated. IDA is the only market entity that borrows funds from investors at low yielding, triple-A bond rates and - Poverty and Equity TTL lends at long term concessional rates. IDA is financially ” sound due to its robust capital adequacy model and do- nor contributions that also signal strong shareholder sup- port. The new concept nevertheless required substantial Social safety net programs – some established compar- outreach to familiarize investors with the IDA model. IDA atively recently – helped IDA countries tackle poverty made progress with these efforts, and market acceptance and build resilience as well as address the effects of the accelerated during the cycle. At the end of IDA19, after pandemic. For example, just prior to the pandemic, 45 just three years of market access, IDA market borrowings countries in Sub-Saharan Africa—three times as many as were already over $10 billion in one year. IDA’s planned at the end of the 1990s—had introduced social safety net fundraising from bond markets grew: After an inaugural programs, which allowed governments to move quickly $1.5 billion issuance in April 2018, within two years, IDA to support the poorest communities. With support from targeted issuance of the US dollar equivalent of $5–7 IDA19, in West and Central Africa alone, 19 countries billion by the end of FY20, and greater than $10 billion rolled out cash transfers and employment assistance, annually by FY21 and FY22. By the end of FY22, IDA had reaching about 50 million people. Over the two-year im- total market borrowings of about $26 billion (Figure 1.1). plementation period, IDA19 committed over $6 billion across a wide swath of IDA countries to build and en- hance digital social protection systems to deal effectively with shocks and strengthen households’ resilience and inclusion. 7 IDA19 AT WORK IN A GLOBAL EMERGENCY Figure 1.1. IDA’s successes in market borrowing stretched the reach IDA borrowings and balances, as of the end of donor contributions and helped IDA scale up financing of the fiscal year for clients. Thanks in part to the resources generated by IDA’s hybrid capital model, along with IDA’s strong capital 40 adequacy and ample liquidity, IDA entered the cycle in a robust financial position. That financial position, in turn, 30 6.2 enabled IDA to lean forward in its responses to unfolding crises while continuing to manage resources prudently. US$ billion IDA supported the pandemic response by increasing 20 FY21 and FY22 resources nearly 50 percent above annual 20.6 19.7 levels in IDA18. After Russia invaded Ukraine in the final 12.1 months of IDA19, IDA, with the support of stakehold- 10 3.4 ers, tapped into temporarily available capital headroom 1.5 to provide exceptional non-concessional financing to 5.8 6.8 7.6 7.8 7.0 Ukraine. As IDA19 transitioned to IDA20, it became clear 0 End- End- End- End- End- that multiple compounding crises would continue to FY18 FY19 FY21 FY20 FY22 unfold. IDA’s near-term deployable strategic capital po- Market borrowing, at amortized cost sition enabled it to support clients in frontloading IDA20 Market borrowing, at fair value resources from FY24 to FY23. Concessional partner loans, at amortized cost 8 IDA19 AT WORK IN A GLOBAL EMERGENCY 1.6. Accelerating the IDA20 Replenishment and responding to a Second Global Crisis As the extraordinary IDA19 cycle entered its final two quarters, Russia’s invasion of Ukraine and its impact on the global economy prompted another rapid response from IDA. The crisis emerged at an already exception- ally challenging time for the poor and vulnerable, com- pounding the effects of the pandemic and adding to the longer-term challenges related to climate change and conflict. It posed additional challenges to the WBG’s twin goals and increased the risks of deepening inequality across and within countries, with impacts on the pros- pects for pandemic recovery. IDA responded quickly with portfolio restructurings and rapid reallocations to target support where it was most needed. In its final quarter of operations, IDA19 sup- plemented IBRD’s support to Ukraine and Moldova by enabling a $1 billion short-maturity non-concessional loan to Ukraine, financed from market borrowing against IDA continues to work to protect and enhance its access IDA’s temporarily available Deployable Strategic Capital to cost-efficient market funding. IDA is working to build a cushion, and by increasing the ceiling for Moldova’s sustainable bond program to mobilize resources for long- temporary access to IDA by $100 million, financed from term development needs in IDA countries. All IDA bonds the CRW. The war had significant impacts on nutrition from FY22 have been issued with the label ‘Sustainable and food security globally, prompting a rapid rise in Development Bond’ to indicate to investors that funds cereal prices, increasing stressors on grain availability, will support sustainable development activities in mem- and resulting in higher fuel and fertilizer prices with an ber countries. Finally, even as IDA carefully stretches re- expected longer-term impact on food production. With sources to enhance financing when warranted by client food insecurity already on the rise since 2016, and with needs, it builds on the WBG’s successful seven-decade close to 1 billion people facing food insecurity in 2022, track record of prudent risk management and mobiliza- IDA prepared to support the WBG’s crisis response with tion of financing from capital markets. It also continues particular emphasis on early responses to the food crisis to conform to principles agreed among IDA donors, bor- as IDA20 launched. rower representatives, and WBG Management when the hybrid financing model was introduced. In particular, IDA aims to protect the stability and predictability of financ- ing to IDA countries, to mitigate against hidden bills to donors, and to use ensuing discussions to monitor prog- ress and adjust as needed. Donor contributions remain central to IDA’s financial model. Donor contributions to replenish IDA’s capital are key to determining IDA’s total financing envelope. IDA’s hybrid capital model also relies on this donor support. Other measures to optimize IDA’s balance sheet can sup- plement donor contributions and market borrowing but are subject to factors including IDA’s remaining deploy- able capital, the level of concessionality, and the riskiness and conditions of the external environment.13 9 INVESTING IN GROWTH, PEOPLE, AND RESILIENCE Chapter 2. INVESTING IN GROWTH, PEOPLE, AND RESILIENCE: 10 YEARS TO 2030 2.1. Overview of IDA19 Results 24.4 million people provided with access to electricity. An unprecedented adaptive management exercise was undertaken at IDA19 mid-term to respond to the global 15.8 million people crisis. Reprioritization of operations was accompanied provided with access to improved water sources. by adjustments to the expected values for some Results 10.2 million people Measurement System indicators. The three-tiered RMS provided with improved sanitation services. tracking (i) high-level development outcomes and the broader context of countries in which IDA operates; (ii) development results supported by IDA operations; and protect development gains, while staying the course to- (iii) IDA’s organizational and operational effectiveness re- ward higher-level development outcomes. For example, mained a robust framework for defining, measuring, and throughout the crisis, IDA continued to help countries communicating the results that countries deliver with IDA deliver essential services to minimize disruptions to peo- support. ple’s lives. Tier 2 indicators on enhancing access to water, sanitation, and electricity all met their expected values Not without challenges, most RMS expected values for the cycle. As COVID-19 disruptions shifted many as- were met or exceeded despite the extraordinary circum- pects of daily life to virtual formats, IDA extended access stances of IDA19. IDA’s swift response and surge financ- to broadband internet for 47.1 million people, including ing helped countries address the most urgent needs and 15.3 million beneficiaries (32.5 percent) in FCS countries. 10 INVESTING IN GROWTH, PEOPLE, AND RESILIENCE To provide a sense of scale, this means that IDA’s efforts 2.2. Results across IDA19 to extend internet access reached beneficiaries equiv- alent to the total population of Spain. As illustrated in Special Themes Table 2.1, IDA met or exceeded the expected values for IDA19 retained the original ambition of the Special nearly 80 percent of indicators with predefined perfor- Themes as it addressed the challenges of the pandemic mance standards, notwithstanding the shortened cycle and lockdowns. Despite the magnitude of the challenge, and challenging context. The ambitious expectations IDA19 retained, and made progress across, all five required heightened efforts by teams and clients, new Special Themes and all four Cross-cutting Issues during working modalities with stretched budgets, and creative the shortened implementation cycle. The following sec- problem-solving. As some TTLs reflected, both clients tions provide an overview of how IDA19 helped countries and Bank staff quickly adapted to the new virtual work respond to urgent needs in a period of unprecedented and showed commitment to deliver with speed and crises, drawing on IDA RMS and policy commitment quality, sometimes to the detriment of their work-life data. Most PCs met or exceeded the adjusted targets, balance. According to one TTL, “under this exceptional with a small subset lagging at the close of IDA19. circumstance of the lockdown, everybody gave their 200%, 300%. One should really see this as a sprint that was needed at the time, but it is not sustainable.” Table 2.1. Tier 2 and Tier 3 indicator breakdown “ We could not travel, while being asked to deliver more. We found a way to do it and Tier 2 Tier 3 Total became very organized. When we designed Exceeded (48%, 10) (67%, 14) (57%, 24) the Gulf of Guinea Northern Regions Social expected values Cohesion project, the slogan was to “think Met expected (33%, 7) (10%, 2) (21%, 9) regionally, act locally”. But I think we could values also add, “work remotely” to this. We had Did not meet (19%, 4) (24%, 5) (21%, 9) a much more frequent interactions with the expected values government than what we would have, thanks to virtual meetings. As the crisis shifted client priorities and disrupted plans, -Social Development TTL IDA19 delivered less results than expected in a few areas. As clients refocused priorities to address imme- diate needs and dealt with the effects of supply chain disruptions and travel restrictions, some longer-term ” investments were deprioritized, resulting in missed tar- gets. For example, the number of people with enhanced access to transportation reached only 36 percent of its expected value for the cycle. Even as clients shifted emphasis to addressing immediate food security needs, IDA supported 2.4 million farmers in adopting improved agricultural technology. Though still significant, the indi- cator also fell short of its target, due to an emphasis on addressing immediate food security needs. Finally, the indicator tracking improved irrigation services missed the expected range (by less than one percent or 1,526 hect- ares). These areas will continue to require efforts beyond the IDA19 cycle. 11 INVESTING IN GROWTH, PEOPLE, AND RESILIENCE 2.2.1. Jobs and Economic Figure 2.1. Beneficiaries of job-focused interventions in Transformation FCS have more than doubled IDA19 Results 8 Against a backdrop of pandemic-related pay cuts and job 7 losses, IDA19 expanded the reach of its efforts to support 6.7 Beneficiaries, millions 6 jobs, economic growth, and financial services. During the cycle, IDA helped countries provide job-focused in- 5 x2 terventions to over 26 million people, outpacing in two 4 years what IDA18 achieved in three. While the number 3 of beneficiaries of job-focused interventions in FCS coun- 3.1 tries more than doubled, from 3.1 million to 6.7 million, 2 supporting livelihoods and economic growth in the most 1 challenging contexts remains an area of continued need. 0 IDA also helped countries increase the number of bene- IDA18 IDA19 ficiaries reached with financial services, which has seen a (FY18-FY20) (FY21-FY22) steady upward trend since the indicator was introduced IDA FCS in IDA18. Financial services reached 18.8 million people, Indicator: Beneficiaries of job-focused interventions a more than fourfold increase compared to IDA18, far surpassing the expected range of 3–4 million. In Yemen, IDA’s Cash-for-Work program has helped lessen the im- Figure 2.2. pact of the crisis on local households and communities by More than fourfold increase in beneficiaries improving incomes, livelihoods, and social mobilization, of financial services with over 420,000 participants gaining employment and 5.4 million people gaining access to key social services.14 24 Another Tier 2 indicator that achieved strong results is 21 18.8 people provided with improved urban living conditions. IDA19 improved urban living conditions for more than 18 Beneficiaries, millions 20 million city dwellers, surpassing the expected range 15 of 10–12 million and representing a 30 percent increase x4.5 12 compared with IDA18. And a focus on economic transfor- mation was embedded in IDA country strategies, with all 9 Country Partnership Frameworks (CPFs) reflecting at least 6 x5 one of the four key principles underpinning economic 10.1 transformation.15 Target 3 4.1 1.9 0 “ IDA18 IDA19 (FY18-FY20) (FY21-FY22) In urban areas, where the government team IDA FCS Females implementing the project had little previous Indicator: Persons that benefited from Financial Services supported experience, there were challenges with starting by WB Operations up quickly in the aftermath of the COVID shock. However, they collaborated effectively with World Bank, EU, KfW, ILO, GIZ, WFP and UNICEF, and were able to both mobilize resources (monetary and technical) to scale up a cash transfer program. -Social Protection TTL ” 12 INVESTING IN GROWTH, PEOPLE, AND RESILIENCE PCs under the Jobs and Economic Transformation reliable and affordable access to ICT services, there was Special Theme aimed to support SDG8’s objective of both an infrastructure dimension and a need for pro- “full and productive employment” for all. Before the on- grams to enable more firms and workers to adopt digital set of the COVID-19 pandemic it was projected that 20 technologies. This continuing agenda is also reflected in million new jobs would be needed in IDA countries every IDA20 priorities. year for a decade simply to meet the growing number of young men and women entering the labor market. Thirteen PCs aimed to support economic transformation Box 2.1 Improving outcomes for youths and private sector development to help meet this need. and firms through dual apprenticeship The approach was designed as a pathway to creating While vocational and skills training programs have more and better jobs, improving the quality of jobs in had mixed results overall, those that included prac- the formal and informal sectors, and strengthening inclu- tical experience, soft-skills training, and job referrals sion. Overall, the framework proved to be fit for purpose, often increased hours worked and earnings for partic- though the pandemic intensified needs in some areas ipants. (Vocational and Skills Training Programs to and temporarily shifted some priorities, affecting prog- Improve Labor Market Outcomes). Recent evidence ress on a few commitments. has shown that policy reforms and investments in apprenticeship systems can be beneficial for both youths and firms. In Cote d’Ivoire, subsidized dual JET took on renewed importance as the economic im- apprenticeships induced a large increase in youth pacts of the pandemic contributed to income losses and participation in apprenticeship and led youth to have uncertainty. Some high-growth, labor-intensive sectors, higher earnings by 15% five years after the end of the such as tourism, were particularly hard hit. The reform program (Direct and Indirect Effects of Subsidized agenda supported by the Special Theme was import- Dual Apprenticeships). In Nigeria, a program that ant for a robust and resilient recovery. Rapid response aimed to provide marginalized youth with access to Business Pulse Surveys conducted at frequent intervals skilled work or productive self-employment had a provided essential insights on the distributional impacts positive impact on employment and productivity, job of the pandemic, identifying the sectors and types of search behavior, and economic welfare (A Way Out : firms being hardest hit, and those that were best able to Evidence from Two Trials of the Mafita Apprenticeship adjust their business models, absorb new technologies, and Community-Based Skills Training Programs or access government support programs. in Northern Nigeria - Endline Evaluation Report (English)). In Ghana, matching young people with small firms led to an increase in firm size of approx- JET met or exceeded nine of 13 PCs linked to country imately half a worker and an increase in firm profits engagement, country-led collaboration, and investments of approximately 10% for each apprentice place- in FCS countries, reducing bottlenecks in job-creating ment offered (Are Small Firms Labor Constrained? sectors. Country-led collaboration and regional infra- Experimental Evidence from Ghana). structure and human capital investments all exceeded targets, and demand for digital solutions grew rapidly in the face of COVID-19 lockdowns. More than doubling the target of 10, IDA supported 24 countries to develop and modernize regional infrastructure and reform cross-border policies with high potential for promoting growth. Investments in 14 countries built skills and em- ployability, with particular attention to the needs of young women and men, and people with disabilities. In 14 countries, IDA worked with other multilaterals under country-led platforms to promote private investment. The pandemic considerably increased the interest in dig- ital tools for promoting safe and productive work. Sixty- three percent of micro, small and medium enterprise (MSME) projects incorporated digital financial services and/or digital entrepreneurship elements in IDA19, ex- ceeding the target of 50 percent. With many still lacking 13 INVESTING IN GROWTH, PEOPLE, AND RESILIENCE In four areas IDA achieved progress that was narrowly for supporting firms and maintaining employment short of targets. Shifting priorities and the difficulties of during the pandemic. “At Your Service? The Promise of advancing complex policy discussions in the face of a Services-Led Development” analyzed the potential for global emergency and travel lockdowns affected deliv- structural transformation and inclusive jobs, particularly ery of some PCs. Fifty-six percent of agriculture projects in light of accelerating digitalization, and “The Trade and during IDA19 supported agribusiness value chains, just Climate Change Nexus: The Urgency and Opportunities short of the 58 percent target. The rapid spread of the for Developing Countries” addressed a key agenda mov- pandemic, the prevalence of locusts in some countries, ing forward. Country-level analytics, including Country and the disruption of global supply chains precipitated Private Sector Diagnostics (CPSD), helped clients de- by Russia’s invasion of Ukraine all affected food security in velop targeted JET strategies and prioritize specific IDA countries. Some clients shifted resources to prioritize constraints that needed to be addressed to unlock pri- immediate responses, delaying mid- to long-term de- vate sector opportunities. Updated Bank guidance and velopment goals. IDA advanced broadband penetration growing experience with data tools for jobs diagnostics in 17 of a planned 18 countries and promoted job-en- helped ensure CPSDs included a jobs lens. abling urban investments in 14 of a planned 15 coun- tries. Challenges in advancing complex policy dialogue Reflections on IDA19: during COVID-19 lockdowns delayed some planned investments. IDA initiated 28 pilots to estimate indirect/ Complementarities across themes helped improve induced job benefits of IDA investments, and completed impact. JET remains highly interconnected with other 17, falling just short of the target of 20 as the pandemic Special Themes, including Gender and Climate Change, affected timelines. Data inadequacy, delays in collecting and is fully aligned with the Building-Back-Better agenda. data, or the suspension of project components due to These complementarities can maximize results. For ex- the pandemic all contributed to challenges in completing ample, combining digital entrepreneurship and digital the pilots for this complex analysis. Those that were com- finance effectively expands economic opportunities, par- pleted underscored the value of considering indirect jobs ticularly for women. Similarly, investments and reforms to impacts in project design. Estimates of indirect impacts address the risks of climate change have clear synergies often exceeded direct impacts. with JET and green recovery. As countries moved into a greater focus on restructuring and recovery, they re- Thought leadership and analytics helped identify solu- quired additional support for reforms. Some countries tions that will inform IDA operations for years to come. proactively re-examined their insolvency regimes. Others Flagship publications provided guidance for JET inter- looked at loosening some restrictions on foreign invest- ventions during the cycle. For example, Supporting ment. Many countries have taken on a more significant Firms in Restructuring and Recovery, the “Firms 2.0” role in helping finance private sector activities and as- paper, laid out key evidence and recommendations sisted in unwinding some of these positions.  14 INVESTING IN GROWTH, PEOPLE, AND RESILIENCE 2.2.2. Gender and Development shape its Gender Strategy, and deepen the work to ad- vance gender equality. The commitments have advanced IDA19 Results IDA’s leadership in key areas. IDA achieved all six PCs While the crises amplified existing vulnerabilities expe- under the Special Theme, with four exceeding the tar- rienced by women and girls, IDA continued to promote gets. IDA met targets for supporting women’s access to, gender equality. Building on foundations built in previ- and use of, digital services and for supporting countries ous IDA cycles, the standalone gender-related indicators to invest in GBV prevention and response. It exceeded tracked in the RMS showed a positive trend, demon- targets on promoting access to reproductive, adolescent, strating IDA’s strong commitment to closing gender and primary health, for supporting women’s digital skills gaps. The share of gender-tagged projects—i.e., those development, employment opportunities in infrastruc- that identify a gap through analysis, take specific action ture, and strengthening women’s land rights. to address it, and monitor progress—has increased by Figure 2.3. 31 percentage points since FY20, reaching 93 percent. IDA supported more operations to address Similarly, the number of IDA-supported operations GBV working to prevent and respond to GBV has increased 120 significantly, reaching 114 in FY2216. The alarming spike 114 in incidences of GBV following the COVID-19 lockdowns 100 Number of operations underscored the urgent need for further investments to address GBV. The IDA RMS shows that IDA19 delivered 80 strong results for women and girls in sectors across the 60 board (Figure 2.3). In IDA19, nearly 78 percent of the 57 Tier 2 indicators that are sex-disaggregated reported 40 that women and girls made up at least 50 percent of the 38 32 overall beneficiaries, up from 44 percent in IDA18. This 20 included all six human capital indicators that are sex-dis- 12 aggregated. In Pakistan, IDA helped the government 0 FY18 FY19 FY20 FY21 FY22 adopt 10 labor laws that are expected to improve the Indicator: Number of IDA-supported operations that address and rights and conditions of 3.7 million female home-based respond to gender-based violence (GBV) workers and vulnerable women in the private sector.17 Moreover, operations supported during IDA19 provided Figure 2.4. social safety nets to 86.9 million female beneficiaries Increasing share of gender-tagged (up from 27.4 million in IDA18) and financial services to operations in the IDA portfolio 10.1 million female beneficiaries (more than a fourfold increase compared with IDA18). These results are espe- 100% +33pp cially noteworthy given the challenges and shortened timeframe of the IDA19 cycle. +31pp 93% 96% 80% 86% 81% Percentage 60% Support through the Special Theme on Gender and 62% 63% Development helped accelerate progress toward the 40% SDG5 targets.18 But actions to close gender gaps and 20% empower women and girls improve development out- comes across SDGs. For example, the work in IDA19 0% to close gaps between women and men had an impact on SDG 8’s objective to promote inclusive growth and FY20 FY21 FY22 full and productive employment (supported both by the % of Gender-tagged IDA supported operations Gender and JET Special Themes). Similarly, actions to % of Gender-tagged IDA supported operations in FCS close gender gaps proposed under the FCV and G&I Special Themes are directly relevant for SDG16 to pro- Indicator: Percentage of IDA-supported projects that demonstrate a results chain by linking gender gaps identified in analysis to mote peace, justice, and strong institutions. IDA PCs, specific actions that are tracked in the results framework evolving over multiple cycles, have helped the WBG 15 INVESTING IN GROWTH, PEOPLE, AND RESILIENCE IDA19 built on a track record of research to apply cut- one of the most cost-effective approaches to improve chil- ting-edge knowledge on achieving gender results in IDA dren’s learning. Moreover, the intervention had substantial operations. The Bank has supported standalone research spillovers on older siblings in terms of increased learning, products and research within lending operations in IDA decreased teenage pregnancies, and delays in the early countries through Regional Gender Innovation Labs and entrance into the labor market. In the Democratic Republic the Development Economics Group, informing IDA- of Congo, studies examined gender gaps in access and financed operations. Gender Resource Packages pro- quality of basic education,20 identified supply-side and de- vide country teams with tools to analyze constraints and mand-side constraints to girl’s education,21 and provided identify solutions to promote sustainable and inclusive policy recommendations to the government to keep girls growth. Women, Business, and the Law documents and in school and learning.22 Results highlight the importance analyzes gendered gaps in countries’ legal frameworks of changing harmful social norms and parental percep- and progress, or lack thereof, in gender-related reforms. tions about returns to education and eliminating violence The newly revamped Gender Data Portal puts reliable in school through stronger school leadership and commu- gender data and resources into the hands of key decision nity engagement. The results of these analytical products makers. A new generation of education operations builds have informed the design of the new lending operation on on over a decade of testing, research, and evaluations of “DRC Girls Learning and Empowerment”. interventions that aim to benefit adolescent girls. These operations are providing safe spaces in schools, improving IDA has continued its global leadership on addressing girls’ sexual and reproductive health, and targeting teach- gender-based violence. Upstream support increasingly ers to change norms. For instance, a “trial-and-adopt” uses Development Policy Operations (DPOs) to facilitate approach to improving education outcomes in northern policy reforms, client awareness-raising and capaci- Nigeria shows that exposing parents to aspirational vid- ty-building, and technical advice (for example, by enact- eos of role models reshaped attitudes and norms toward ing regulations that establish a systematic framework to girls’ education and reduced out-of-school children by protect GBV survivors in Uzbekistan and by operation- 42 percent.19 When these community screenings were alizing Child Protection Committees to promote aban- combined with smartphones preloaded with literacy apps, donment of child marriage in Niger). Downstream oper- learning outcomes improved by 35 percent, making this ations across sectors help strengthen services delivered 16 INVESTING IN GROWTH, PEOPLE, AND RESILIENCE to survivors of violence, build safe public spaces, and shift unequal gender norms. In Kosovo, trainings have strengthened health care workers’ capacity to provide quality, confidential services and referrals to survivors. In DRC, infrastructure upgrades are making public spaces safer for women and girls. And in the Solomon Islands, IDA is working in partnership with businesses to create more respectful workplaces. Internally, IDA staff have new resources to draw upon, including systems and tools for technical advice. A Gender Tag GBV Dashboard features 5,476 gender-tagged projects, providing teams with con- crete examples of analysis, actions, and indicators of GBV prevention and response. Partnerships are integral to the implementation of the WBG’s Gender Strategy, as they enable greater scale and innovation. IDA works closely with IFC, and Reflections on IDA19: both have a strong and deepening collaboration with UN Women, United Nations High Commissioner for IDA gender commitments can have ripple effects beyond Refugees (UNHCR), the International Labor Organization IDA countries. The experiences of IDA19 and earlier IDA (ILO) and other UN agencies, as well as with think-tanks cycles show that commitments to accelerate gender such as Center for Global Development (CGD), and the equality made under IDA have consistently been ap- Multilateral Development Bank (MDB) working group on plied Bank-wide, and there has been parallel progress gender. For example, research undertaken in partnership on most topical areas in IBRD countries—often drawing with the UNHCR on the gender dimensions of forced on the experience gained through IDA implementation. displacement across 17 countries showed that gen- Where IDA has led the way on issues such as maternal der-related constraints and barriers are often amplified and reproductive health, girls’ education, and increasing in situations of forced displacement. At the country level, women’s economic empowerment and agency, teams IDA is expanding partnerships, working through national have also applied the lessons in IBRD countries. Efforts systems, and supporting reforms for impact at scale, from have also begun to spill over outside the institution. For women’s economic inclusion in Niger and Mozambique, example, support for IDA19’s PC3 on creating employ- to women’s empowerment and livelihoods in Zambia, to ment opportunities in infrastructure sectors—in combina- supporting a national gender strategy in Bhutan. tion with the Gender Tag—helped spawn the South Asia Women in the Power Sector Network (WePOWER) part- nership of over 30 electricity utilities and energy-sector organizations that collectively aim to increase workforce participation of women in the sector. 17 INVESTING IN GROWTH, PEOPLE, AND RESILIENCE 2.2.3. Climate Change IDA19 Results As the leading provider of concessional climate financing to low-income countries, IDA19 delivered $25.4 billion in climate financing, of which $15.2 billion (60 percent) was for adaptation. This financing, along with the knowledge presented in the Country Climate and Development Reports (CCDRs), is helping countries address climate and development together.23 IDA19 projects are esti- mated to contribute an annual net Greenhouse Gas (GHG) emission impact of -32.7 MtCO2e. As climate-re- lated disasters have become more frequent and more in- tense, the RMS shows that IDA increased its support for countries to institutionalize disaster risk reduction, reach- ing 62 countries (83 percent of IDA countries), of which 42 percent were FCS countries. This far exceeded the ex- pected value for this indicator. In Honduras, IDA worked to improve the country’s emergency preparedness and response to natural hazards and climate change, reaching 1.3 million beneficiaries.24 IDA financing with disaster risk management (DRM) co-benefits remained stable over the two-year period, but fell lightly short of the expected value. This indicator will be monitored closely in IDA20. 500 percent increase in grant financing for climate priorities since IDA16. Figure 2.5. Figure 2.6. Annual net GHG emission anticipated savings Increased support for countries to quadrupled since IDA17 institutionalize disaster risk IDA17 IDA18 IDA19 70 (FY15-FY17) (FY18-FY20) (FY21-FY22) 0 1.4 60 6.9 62 -5 35% 7.4 Number of countries Million tonnes CO2eq/year 50 -10 16.1 46 40 -15 30 -20 20 -25 28.4 10 -30 32.7 x4 0 IDA18 IDA19 -35 (FY18-FY20) (FY21-FY22) IDA FCS Indicator: Countries supported towards institutionalizing disaster risk reduction as a national priority with IDA support in FCS Indicator: Net Greenhouse Gas (GHG) emissions. GHG emission results are project specific and results are reflection of the pipeline. 18 INVESTING IN GROWTH, PEOPLE, AND RESILIENCE Figure 2.7. and the impact of climate change as a threat multiplier. Grant financing for climate priorities in IDA The target for ASP support was increased from 25 to 35 countries increased in the last 6 years countries at the IDA19 Mid-Term Review in April 2021. Overall, 47 countries received ASP support via 97 oper- 40 6 ations, far exceeding the revised target. One example A 500% increase in grants to IDA countries is the $500 million Yemen Emergency Social Protection in the last 6 years 5 Enhancement and COVID-19 Response Project, which 30 strengthens the capacity of national institutions and Commitments, US$ billion 4 provides cash transfers, temporary employment, and Grants, US$ billion increased access to basic services and economic op- portunities to food-insecure populations affected by the 20 3 pandemic, conflict, and climate-related shocks. 37% 2 Shifting client priorities during the pandemic challenged 10 31% 14.3 IDA19’s ambitious agenda for renewable energy and bat- 31% 11.1 tery storage. IDA19 exceeded the (adjusted) expected 9.3 1 28% 32% Gigawatt-hour (GWh) value for battery storage. However, 17% 6.8 6.9 2.7 22% because some planned operations were delayed to FY23, 4.3 0 0 IDA19 did not achieve the expected value for supporting FY16 FY17 FY18 FY19 FY20 FY21 FY22 IDA countries in renewable energy during the cycle. IDA climate finance Total IDA commitments Energy systems transition is critical for low-carbon and IDA climate finance in grants climate resilient development and continues to be a fo- cus under the IDA20 Climate Change Special Theme. Grant financing for climate priorities in IDA countries One example financed in IDA19 is the $150 million increased 500 percent between FY16 and FY22. IDA19 Rwanda Energy Access and Quality Improvement Project, complemented financing volume with PCs that aimed which supports expansion of grid connections by reduc- to deepen IDA’s support for climate related SDGs. The ing the costs of off-grid solar home systems, increasing Special Theme supported climate action (SDG13), afford- low-cost renewable energy, reducing voltage fluctuations able and clean energy (SDG 7), industry, innovation, and on transmission lines, and supporting the national smart infrastructure (SDG 9), health (SDG 3), and sustainable meter program. The project was the World Bank’s largest use of ecosystems and biodiversity loss (SDG15). IDA met clean cooking operation in Africa during FY22. It received or exceeded all but one PC under the Special Theme. co-financing from the Energy Sector Management Assistance Program (ESMAP)’s Clean Cooking Fund, IDA19 exceeded its climate finance target and continued which incentivizes private sector investment in clean to far exceed other development partners in the share cooking solutions and builds institutional capacity to sup- of climate financing that supported adaptation. IDA19 port an enabling environment. had targeted climate co-benefits of 30 percent, but sur- passed the goal with 34 percent of total commitments on average during the cycle. Sixty percent of IDA’s climate 24 IDA countries financing supported adaptation, far surpassing the esti- supported to implement and update their Nationally Determined Contributions mated 7.5 percent of global climate finance dedicated to adaptation.25 Of the operations approved during IDA19 with more than 20 percent climate co-benefits, nearly all Helping countries with their national climate plans is vi- included at least one climate-related results indicator, tal to achieving the objectives of the Paris Agreement. thus exceeding the 90 percent target. During IDA19, IDA supported 24 countries to implement and update their Nationally Determined Contributions Increased support for Adaptive Social Protection (ASP) (NDCs), with support from the NDC Support Facility in national systems helped reduce the impacts of cli- and its successor, the Climate Support Facility (CSF), a mate shocks on poverty and human capital outcomes. multi-donor trust fund launched in 2020. The World Bank Countries shifted focus to preparedness and social safety provides countries with analytics and technical assis- nets to respond to emerging needs from the pandemic tance (TA) to build NDC institutional capacity and assist 19 INVESTING IN GROWTH, PEOPLE, AND RESILIENCE “ I led the Resilience Rating System, and we embedded climate change specialists in select operations to help mainstream climate adaptation and resilience considerations. They became part of the task teams, with some even participating in virtual missions – something that would not have even been a consideration had we not been in a lockdown and had to think through different and innovative ways of engaging with our clients. It was a triple win – it was a win for the task team who got to learn more about climate considerations; it was a win for the client who got to engage more with someone with expertise in climate data and climate risk; and a win for our team members to better understand the intricacies of the operations and make a more meaningful impact on project design. -Climate Change TTL countries in implementing effective policies/investments ” system to strengthen the project’s resilience, including to achieve NDC goals. Upstream analytical support capi- incorporating a risk stress testing tool as part of the talizes on Bank engagement in client countries and helps economic analysis. The RRS also helped strengthen the integrate climate into development operations. The climate and disaster resilience of the Yemen’s Emergency Bank’s NDC support is consistent with efforts under its Connectivity Project, which provides climate resilient Climate Change Action Plan to align financing with the road access, employment, and entrepreneurship oppor- Paris Agreement and mainstream climate into operations. tunities to food-insecure rural populations. Support for sector-based policy and institutional reforms Reflections on IDA19 and investments further advanced climate and develop- ment action in key systems. Green growth focused devel- During the COVID-19 crisis, IDA managed to keep focus opment policy financing (DPF) is helping create conditions on supporting clients to deal with the climate crisis. The for new market opportunities and resilient economic IDA19 cycle saw many IDA countries boost investments growth. One example is the $200 million Nepal Finance in disaster preparedness and in more reliable and sustain- for Growth DPC, which supports reforms that enhance able hydrological and meteorological (or “hydromet”) climate adaptation by improving the country’s financial services, as well as disaster preparedness, response, and capacity to address weather-induced disasters. It also pro- post-disaster resilience. IDA19 also supported coun- motes reforms related to the insurance sector that have tries to strengthen institutional and policy frameworks the potential to mitigate risks and vulnerabilities stemming for climate change adaptation and disaster risk reduc- from climate change and improve the ability to recover tion. This resulted in an uptake in Development Policy and reconstruct property affected by natural disasters. Financing with a catastrophe deferred drawdown option (Cat DDO), which provides access to fast-disbursing re- An IDA19 innovation, the Resilience Rating System (RRS), sources as bridge financing for future emergencies. The increased incentives for more effective climate adapta- reforms supported under DPFs will help drive a shift from tion and resilience. The RRS was piloted in 20 opera- reactive emergency management to more proactive, in- tions during IDA19, meeting the PC target. It provides tegrated approaches to mitigating disaster and climate guidance and specific criteria to assess the resilience of risks. This focus on preparedness and response is being projects to climate risks and the resilience built through expanded under IDA20, including through a dedicated projects in the broader community or sector.26 Eight FCS policy commitment under the Climate Change Special countries were included in the pilot, demonstrating the Theme. Recognizing the importance of good analytical RRS’s flexibility to serve a diverse set of countries with underpinnings for prioritization of climate action, the varying underlying causes of climate vulnerability. In WBG’s CCDRs were introduced during the IDA19 cycle. IDA20, the RRS is being tracked in the RMS to monitor This new core diagnostics is rolled out as an IDA20 PC the application of this important assessment across IDA and tracked in the IDA20 RMS. countries. One example of an IDA19 project that piloted the RRS is the Gambia Inclusive and Resilient Agricultural Value Chain Development Project, which used the 20 INVESTING IN GROWTH, PEOPLE, AND RESILIENCE 2.2.4. Fragility, Conflict and The FCV Special Theme aimed to continue deepening Violence IDA’s engagement in FCS countries. Since IDA15, IDA has steadily increased its engagement in FCS countries, IDA19 Results including by expanding financing, decentralizing staff, enhancing partnerships, and introducing more targeted IDA is increasingly reaching people in the most challeng- programs and tools. The IDA19 replenishment was ing contexts—characterized by FCV—where needs are closely sequenced with the development and launch greatest. Seen over decades, the number of conflicts of the WBG FCV Strategy (2020–2025), which allowed and forcibly displaced people have risen significantly,27 for strong alignment among the pillars of the Strategy, with high concentrations of poverty and cross-border the IDA19 PCs, and IDA’s financing toolkit. The Special risks complicating progress toward development goals. Theme prioritized support to help IDA FCS countries The persistence of poverty in FCS countries, relative to address higher poverty rates and lagging progress in non-FCS countries, is evident,28 and FCV-affected situa- reducing extreme poverty, which is essential for progress tions often face multiple compounding risks. RMS data on the SDGs, including SDG 16. show an increasing share of beneficiaries reached by IDA-supported operations live in FCS countries, a result Figure 2.8. that is driven both by the expansion of financing for FCV Beneficiaries reached in IDA FCSs has and the changing composition of the list of FCS coun- increased from IDA18 to IDA19 tries. Of the eight FCS-disaggregated human capital indicators, seven saw increases in the number of bene- People provided with new or People provided with improved electricity service improved urban living ficiaries reached in FCS countries, when compared with conditions IDA18. For example, more people in IDA FCS benefited 15 Beneficiaries, millions 8 from social safety net programs, essential HNP services, Beneficiaries, millions 12 8.0 and access to improved water sources during the two 11.9 6 9 years of IDA19 than in the three-year IDA18 cycle. The 4 number of people provided with new or improved elec- 6 tricity services in FCS countries also increased, by more 3 2 2.8 3.4 than 300 percent (from 3.4 million in IDA18 to 11.9 mil- 0 0 lion in IDA19), with beneficiaries of electricity services IDA18 IDA19 IDA18 IDA19 in FCS now representing nearly half of all beneficiaries (FY18-FY20) (FY21-FY22) (FY18-FY20) (FY21-FY22) of IDA-financed operations. This is significant given that Sustainable and Human Capital 40 percent of the total population of IDA countries live Inclusive Growth in FCS countries. In Yemen, IDA helped tackle energy poverty by providing more than 3.2 million people with The WBG accompanied these efforts by increasing its solar energy systems that can be used to facilitate access staffing footprint in IDA FCS countries. The WBG invested to water, educational services, and health care.29 In Haiti, considerable efforts in the commitment to increase its IDA helped the government respond to emergency staffing footprint in FCS countries. Focused measures needs, providing access to essential services, including included a dedicated recruitment drive that aimed to maternal and child health services for 1.2 million women attract the right talents with the right skills to deliver for and children.30 Despite the progress, tremendous needs IDA FCS clients. The Bank enhanced incentives and as- remain, and IDA will continue to prioritize delivering in signment benefits for staff in FCS locations, developed FCV-affected contexts going forward. learning targeted specifically to FCV issues, and put sup- port in place for staff based in FCS locations. Staff with FCS experience also receive support on mobility and ca- reer advancement. The efforts yielded steady increases in the FCS footprint. The WB was on track to exceed the target of 750 staff working in FCS by the end of IDA19. Following political and security disruptions in Afghanistan and Myanmar, 30 staff transitioned out of assignments in those countries, resulting in a final count that was slightly 21 INVESTING IN GROWTH, PEOPLE, AND RESILIENCE short of target. Recruitment efforts continued beyond the resilience. In countries accessing the FCV Envelope, this end of the cycle and had already reached 747 staff by the was further augmented by recalibrating portfolios and second quarter of IDA20, in FY2023. pipelines to address drivers of FCV and strengthen resil- ience. Where FCV drivers are not directly addressed by The IDA19 FCV financing toolkit provided tailored sup- IDA, given its mandate and comparative advantage, IDA port to IDA FCS countries and medium- to long-term increasingly collaborates with other development and solutions for refugees and host communities. Introducing humanitarian actors across the humanitarian-develop- the FCV Envelope enabled IDA19 to respond with greater ment-peace nexus, and will continue working to expand agility and tailored support corresponding to the first these partnerships. three pillars of engagement of the FCV Strategy, namely: (i) preventing violent conflict and interpersonal violence; (ii) remaining engaged during conflict and crisis situations; and (iii) helping countries transition out of FCV. The fourth pillar of the FCV Strategy, mitigating FCV spillovers, was supported by the Window for Host Communities and Refugees (WHR). In addition to providing financing, both the FCV Envelope and WHR supported structured policy dialogue that aimed to address drivers of fragility. Chapter 3 discusses the FCV Envelope and WHR. “ Toward the end of 2020, I picked up a big The FCV Special Theme prioritized service delivery with a focus on gender equality, disability inclusion, and dig- regional operation. I’d never been to any of ital solutions in IDA FCS countries.  As IDA responded those countries, and we had no field supervision to the COVID-19 crisis, it met a key PC to support whatsoever. I was quite worried about what was improvements in social sector service delivery that ad- going on, on the ground. So, I invested heavily dress differential constraints faced by men, women, and persons with disabilities. During IDA19, disability-fo- in building up my local teams. I was getting cused design gained prominence, resulting in a steady the same supervision budget, but I was not increase in the number of disability-inclusive projects. travelling, so I was able to use that to bring in The pandemic also increased the demand for digital two or three additional local consultants who solutions, and IDA19 scaled up the use of digital tools could be there on the ground. That was a hit such as the Geo-Enabling initiative for Monitoring and and miss because you are hiring people you’ve Supervision (GEMS) for enhanced project implementa- never met. Some of them worked out very well. tion, supervision, monitoring and coordination. GEMS helped strengthen digital capacity and enabled clients Some of them didn’t. to establish their own data collection and monitoring - Social Development TTL ” systems. Haiti, for example, used GEMS to track urgent livelihood support for some 40,000 families and farmers during the pandemic, and the technology now serves as the backbone for agriculture sector monitoring. GEMS Risk and Resilience Assessments (RRAs) and other FCV has also proven an effective tool for coordination and to assessments aimed to strengthen the FCV sensitivity of supporting partners on the ground to enhance develop- programming in IDA FCS countries. RRAs, in concert with ment monitoring, including for the African Development other analytics such as CCDRs and CPSDs, informed Bank (AfDB), which has adopted GEMS as its in-house country programming and regional engagements. All method for project supervision. IDA FCS country engagement products31 approved during the cycle outlined how the WBG could help ad- dress the drivers of FCV and build on sources of 22 INVESTING IN GROWTH, PEOPLE, AND RESILIENCE Box 2.2 Addressing the regional dimensions of fragility A key element in operationalizing the FCV Strategy is scaling up regional and cross-border programs focused on key FCV drivers and risks. Risk and Resilience Assessments are the World Bank’s primary diagnostic tool to understand FCV drivers as well as risks and sources of resilience. They promote a sharpened and nuanced approach to FCV and related risks, offering strategic and operationally relevant recommendations. RRAs have been undertaken to inform both cross-bor- der and country programming to address the regional dimensions of FCV. For example, the West Africa Food Security Project addresses the interconnected drivers of fragility through food system risk manage- Reflections on IDA19 ment and natural resource management. It aims to mitigate conflict risks, economic shocks, and envi- As IDA support to FCS has scaled up significantly in recent ronmental fragility. Implementation is underpinned cycles in terms of programming, portfolio and staff, IDA by a strong analytical program. Research products it is also increasingly subject to the unpredictability inherent has developed include: A Blueprint for Strengthening in these settings. Inevitably, some FCS countries expe- Resilience in West Africa; Regional Risks to Agriculture rienced security, humanitarian, and/or socio-economic in West Africa: Agricultural Risk Impacts, Management setbacks during the cycle, in some cases disrupting re- Measures and Financing Mechanisms through a lationships with key partners. In some countries, political Regional Lens; Understanding the Climate Change transitions shifted priorities. Elsewhere, increased violence and Conflict Nexus in West Africa: A New Approach halted progress on certain milestones agreed through FCV for Operationally Relevant Vulnerability; and Digital Envelope processes. Four of the 13 countries that gained Climate Information and Agriculture Advisory Delivery access to the FCV Envelope in IDA19—Burkina Faso, Mechanisms in West Africa. Chad, Mali, and Sudan—saw political shocks in the form of coup d’états or unforeseen political transitions. Similar shocks also occurred in IDA FCS countries that were not eligible for the FCV Envelope, including Afghanistan and Myanmar. The shocks paused, delayed and, in some cases, halted dialogue and operations. The diverse FCV challenges observed during the cycle underscore that effectiveness requires long-term and context-driven ap- proaches that can respond to both progress and setbacks. A Mid-Term Review of the FCV Strategy is expected in FY24, providing an opportunity to consider some of the identified challenges in greater depth. 23 INVESTING IN GROWTH, PEOPLE, AND RESILIENCE 2.2.5. Governance and IDA19 continued the Governance and Institutions Special Institutions Theme introduced in IDA18, with a focus on how good governance and accountable institutions can facilitate IDA19 Results progress toward the SDGs. High rates of extreme pov- erty in IDA countries reflect limited resources, but also RMS data demonstrates that IDA continued helping misaligned policy incentives, weak institutional capacity, countries build the foundations for growth and develop- inequality, and exclusion. The quality and implementation ment through support for strong institutions and sound of public policies, and institutional effectiveness all con- fiscal management. To address the growing risk of un- tribute to governments’ abilities to respond. PCs under sustainable debt, IDA has increasingly emphasized the the G&I Special Theme aimed to address governance importance of debt transparency and surpassed the RMS breakdowns in institutional quality that affect economic expected value for countries supported to publish annual and social development, slow growth, weaken govern- and timely public debt reports, reaching 41 countries. As ment service delivery, and constrain citizens’ mechanisms the COVID-19 response has constrained countries’ fiscal for holding governments to account. The work aligned space, IDA is helping countries curb illicit financial flows with SDG 16’s objective of promoting peaceful and inclu- (IFFs); IDA19 supported 14 countries to take IFF-related sive societies for sustainable development, providing ac- actions, exceeding the expected value on this indicator. cess to justice for all, and building effective, accountable, Given the potential for data to generate critical insights and inclusive institutions at all levels. and inform decision-making across all dimensions of development, IDA continues to support countries to im- IDA achieved nine of 1232 policy commitments related prove the quality and availability of data. IDA19 provided to debt and fiscal management, leveraging technology statistical capacity-building support for the implementa- for better governance, and improving policy-making tion of household surveys to 54 countries, half of which processes. Coordinated efforts under the joint WB/ are countries affected by FCS, falling just one country International Monetary Fund (IMF) multipronged ap- short of the expected value for this indicator. proach including through IDA’s Sustainable Development “ Finance Policy, and WB operations promoted debt transparency in 31 countries, exceeding the target of We very quickly developed a set of technical notes 25. Burkina Faso offers an example of how sustainable to support the governments to respond to the capacity can be built to improve regular debt report- ing over time, even in difficult circumstances (Box 2.3). pandemic within their public financial management Plans for in-depth analyses of human capital financing and budgetary system constraints. Many of them were initially delayed by the immediate-term focus on used the notes not only to respond to the pandemic pandemic response. However, as IDA19 progressed, 23 but to put together a more flexible and sustainable countries took structural measures to improve the long- public financial management system that would allow term sustainability of human capital financing beyond the them to respond to potential emergencies that may crisis-related surge, exceeding the target of 15 countries. Fourteen countries took action on IFFs to improve do- arise in the future. mestic revenue mobilization. Kenya and Uganda imple- – Governance TTL mented tax evasion modules and are currently undertak- ing in-depth self-assessments. Another 14 countries took The project I led pushed the frontier of IFF-related policy actions. Forty-nine countries began to institutionalizing a system of citizen engagement modernize public service delivery and/or improve effi- within World Bank operations and created a Citizen ciency in procurement with technology. These measures Engagement committee. When the Bank team can strengthen access to services for vulnerable people was not able to travel around the country, the civil and help stimulate openness, transparency, accountabil- ity, and nondiscriminatory action in procurement. The society networks were the boots on the ground, advent of the pandemic increased demand for pandemic working with the districts and having a strong role in preparedness plans, which were completed in 37 coun- monitoring and oversight of service delivery. tries, exceeding the initial target of 25. – Governance TTL ” 24 INVESTING IN GROWTH, PEOPLE, AND RESILIENCE “ There was surely a shift in funding and priorities in Box 2.3 Burkina Faso: Opting for debt transparency to lower borrowing costs the countries that I worked in, but in most countries, Since 2015, Burkina Faso, an FCS country, has been the the data agenda was prioritized. When the pandemic target of terrorist attacks that resulted in population displacements and increasing security costs. Between hit, we realized how important it is to optimize data 2015 and 2020, the Government’s gross financing collection that is conducted completely remotely needs tripled, followed by an increase in borrowing to through phones, and to invest in infrastructure in close the gap. The country’s debt management office national statistics offices, for example by preparing adopted a strategy of debt transparency to expand its investor base and improve borrowing conditions. lists of representative phone numbers that can be With support from IDA, Burkina Faso published its called when a shock happens. first comprehensive Statistical Debt Bulletin in March -Poverty and Equity TTL 2021. Its commitment to transparency and disclosure ” are showing the first positive signs. As it continued timely publication of the Statistical Debt Bulletin over the past two years, the country’s borrowing costs IDA19 enhanced statistical capacity to inform evi- have gradually decreased for all debt instruments, denced-based policy actions and fostered greater citizen and it has extended the maturity of bonds from five to ten years to mitigate liquidity risks. As described engagement in policy measures. Thirty-one countries in the feature story Why One African Country Opted built statistical capacity to improve evidenced-base poli- for Full Disclosure on Debt, access to regional capital cymaking. The Data for Policy Initiative (D4P) helps coun- markets and financing costs have remained favorable. tries develop and use the data they need to monitor im- plementation of national policies and development plans, including the SDGs.33 A regional approach to implement- ing D4P gained traction during IDA19. Harmonized re- gional indicators can strengthen data quality and comple- ment well-functioning national systems. Investments in promoting stakeholder engagement reached 40 percent of IDA countries. IDA19 created and enhanced platforms that allow stakeholders, including women and vulnerable groups, to partake in policymaking and implementation, and to develop sustainable capacity for these stakehold- ers, to influence country systems. 25 INVESTING IN GROWTH, PEOPLE, AND RESILIENCE Box 2.4 Leveraging Civil Society and Citizen Engagement IDA promotes engagement of citizens and civil society organizations in monitoring government performance and aims to foster citizens’ participation in decision-making. The cycle piloted innovative approaches, with joint support from Bank and the Global Partnership for Social Accountability (GPSA), the Extractive Industries Transparency Initiative (EITI). Altogether, IDA19 helped create or strengthen multistakeholder platforms in 30 countries, fulfilling the PC on this topic. Successful examples like those below will shape IDA’s efforts as it continues to scale up and systematize citizen engagement and social accountability measures in its delivery model. • In Mauritania, GPSA supported CSO Eco-Développement (Ecodev) to engage parent-teacher associations, teachers, students and principals in school committees in 40 primary schools. The initiative involved stakeholders in improving Ministry of Education accountability mechanisms and addressing education governance challenges. The participa- tory monitoring of schools led to legislative changes in Parliament, and new government decrees and policies. The legal updates 1) created 1,000 new school committees and a monitoring mechanism to ensure their effectiveness, 2) introduced measures to curb teacher absenteeism and truancy and strengthened competencies of primary school teachers, 3) increased the budget allocation for education, and, 4) introduced distance learning. A new IDA-financed education operation, the Basic Education Support Project (PASEB II) is now supporting the committees, which will work to improve learning quality, increase access to school, fight against disparities, manage textbooks and school supplies, and help monitor teacher attendance. • In Sierra Leone, Oxfam Sierra Leone and the Institute for Governance Reform led a GPSA-financed project to empower citizens to help target health and education sector investments in the post-Ebola recovery effort. Project partners launched the first Service Delivery Index (SDI) in March 2021, based on feedback from service staff, 3,960 households, 490 peripheral health units, and 660 schools. The index captures the state of education and health service delivery and the sectors’ responses in the wake of COVID-19. It describes geographical disparities in quality and quantity of access. The SDI report helped catalyze multi-sector communication. After it was submitted to parlia- mentary oversight committees in August 2021, parliamentarians debated its findings (video of debate). The debate generated recommendations for overcoming service delivery gaps and disparities in access to services, while also building trust between civil society and Government. • In Malawi, the WB’s Country Partnership Framework embeds a citizen engagement roadmap. Drawing from project experience, the roadmap aims to move beyond “box checking” to institutionalize citizen engagement at the macro, sector/systems, and portfolio levels. CSOs and civil society stakeholders have joined project missions and engage with project implementation. The roadmap promotes economies of scale and iterative learning across the portfolio. Three key lessons have emerged. First, Malawi has demonstrated how citizens can shift power asymmetries through collective action and social mobilization. Second, increasing transparency and access to information requires simul- taneously improving information accessibility to, and actionability by, citizens to be effective. Third, citizen engage- ment can be leveraged well beyond individual project level impacts – laying out a framework for its role in improving broader governance effectiveness. 26 INVESTING IN GROWTH, PEOPLE, AND RESILIENCE IDA countries with low tax-to-GDP ratios made progress 2.3. Cross-cutting Issues in domestic resource mobilization. During the COVID-19 lockdowns, countries introduced tax relief measures The IDA19 policy package introduced Cross-cutting for households and businesses facing a sudden loss Issues to help ensure a systematic focus on priorities of income. Although these measures were important across Special Themes. Human capital, debt, disability to protect lives and livelihoods, they caused a sharp inclusion, and technology were identified as issues that contraction in tax revenues. IDA continued to support cut across Special Themes and the broader IDA portfolio, countries in strengthening their tax systems, prioritizing with the objective of strengthening coherence and maxi- the 36 countries with tax-to-GDP ratios consistently be- mizing synergies. low 15 percent. In the face of tax relief measures and shrinking tax handles linked to the pandemic, the results 2.3.1. Human Capital of these efforts fell somewhat short of the G&I PC tar- get to improve the average ratio by 1 percentage point. As COVID-19 and its consequences threatened to re- Nevertheless, IDA countries with low tax to GDP ratios verse decades of human capital gains, IDA19 dramati- concluded the cycle in a more favorable position, with an cally expanded the reach of its human capital programs average increase of 0.33 percentage points in their tax- for the most vulnerable. The context of IDA19 height- to-GDP ratios compared to the start of the cycle. ened both the importance and the difficulty of delivering on human capital. IDA’s efforts helped cushion setbacks Reflections on IDA19 by strengthening health systems’ delivery capacity, supporting education systems, and providing critical Despite strong interlinkages with other Special Themes, social safety nets for millions of vulnerable people in G&I commitments may be challenging to advance when the face of a sharp economic contraction. In Ghana, for country portfolios are small and narrowly focused. Two example, IDA supported the government in delivering additional PCs under the G&I Special Theme fell slightly remote education to an estimated 4.45 million students short of targets. Eighty-three percent of active FCS coun- and provided over 5.8 million children with daily school tries34 received support to strengthen core government meals and sanitation kits.36 Building on decades of sup- functions to address FCV drivers. The result fell short port provided over previous IDA cycles, all Tier 2 human of the 95 percent target because the focus of country capital indicators reported in the RMS met or exceeded portfolios in several small FCS countries did not provide their expected ranges. For two indicators—beneficiaries scope for the intervention during the pandemic. Going of social safety nets and people provided with improved forward, this work will continue, guided by the IDA20 urban living conditions—IDA19 exceeded in two years policy package. IDA supported 19 countries to address the results achieved over the three years of the IDA18 governance constraints to the development, financing, cycle. During IDA19, social safety net programs helped and delivery of quality infrastructure investments, just 170 million people weather shocks. This represents more short of the target of 20. The work underscored the than a sevenfold increase compared with IDA17 and is cross-cutting nature of G&I, and the value of consolidat- almost equivalent to the total population of Bangladesh. ing governance priorities across sectors under a unified IDA19 provided basic nutrition services to 114.4 million framework to structure dialogue and prioritize action. women and children, reaching beneficiaries in 81 percent G&I will continue as a Cross-cutting Issue under IDA20. of the IDA countries suffering from acute food insecurity. Average annual results for most human capital indicators Another lesson from IDA19 relates to technology adop- were higher in IDA19 than in IDA18. However, the share tion and institutional reform. The implementation of e-Pro- of beneficiaries reached in FCS countries varied across curement under IDA19 demonstrated that IDA countries human capital indicators. For example, while 53 percent most benefited not from the adoption of an electronic of beneficiaries for deliveries attended by skilled health procurement system, but rather by radically transforming personnel resided in FCS countries, the FCS share of public procurement practices in line with the adoption people provided with improved sanitation services was process. This showed how technology adoption and in- only 16 percent. stitutional reform can be mutually reinforcing.35 27 INVESTING IN GROWTH, PEOPLE, AND RESILIENCE “ The Ethiopian Public Health Institute (EPHI) is the Ethiopian institution, which together with the Ministry of Health, leads the country’s fight against COVID-19. When COVID-19 came to Ethiopia in March 2020, we were not organized as such. There were so many unknowns regarding the COVID-19 pandemic, and the tools we had for fighting it were limited. The National Metrology Institute of Ethiopia (NMIE) gave priority to EPHI’s needs and organized workshops, provided tools and engineering support to help us maintain our mechanical ventilators, oxygen concentrators, patient monitors, electrocardiograms, suction machines, etc. NMIE’s support during our fight against COVID-19 has been irreplaceable. -Logistics Coordinator, EPHI, Addis Ababa ” Sharply heightened demand for human capital financing As IDA expanded its financing and operations, it met led IDA to double its support compared with the prior and, in some cases exceeded, key PCs, particularly 10-year period, to an annual average of $10.4 billion. Adaptive Social Protection. IDA19 supported improved Programs were repurposed and reprioritized in many IDA skills and employability toward more and higher-qual- countries. For example, primary health-care programs ity jobs, considering the differential constraints facing were expanded to address emerging needs, such as young women and men, and people with disabilities support for isolation and treatment centers for COVID-19 in 14 countries against a target of 10. IDA19 also saw patients and the procurement of PPE, medical oxygen, strong performance on GBV prevention and responses, ventilators, and vaccines. Education programs quickly re- and on sustainable human capital financing, as well as on sponded to the crisis to ensure continued virtual learning women’s empowerment through quality health care, and and service delivery during school closures. And many social services for disadvantaged groups in FCS coun- social protection programs that primarily focused on tries. And while the ambition of the PC target relating to the rural poor pivoted to also cover vulnerable informal adaptive health and social protection and to pandemic workers in urban areas. preparedness plans was increased to 35 countries at the MTR, the target was still exceeded. Figure 2.9. Figure 2.10. IDA19 performance – Human capital Beneficiaries of SSN programs have indicators overshot increased sevenfold since IDA17 180 Achieved 160 170 170M 210M 140 Beneficiaries, million 20M 120 100 x7 x5.5 x2 x2 80 60 59 Target 97M 40 20 24 30M 10M 0 Beneficiaries of People who have People provided IDA17 IDA18 IDA19 SSN programs received essential with improved urban (FY15-FY17) (FY18-FY20) (FY21-FY22) HNP services living conditions Indicator: Beneficiaries of SSN programs 28 INVESTING IN GROWTH, PEOPLE, AND RESILIENCE Human Development (HD) operations faced the chal- COVID-19 pandemic. To aid IDA clients, an emergency lenge of balancing an unprecedented emergency re- operations center staffed by experienced Bank staff and sponse with sustaining the provision of essential service consultants was established to assist task teams in ad- delivery for elderly, young, and vulnerable populations. dressing common operational challenges and expediting Delivering these services became increasingly difficult services, such as Bank-facilitated procurement. The due to the pandemic. Notwithstanding the challenges, COVID-19 MPA offers a model of a Common Framework IDA maintained a focus on the long-term agenda of im- (CF) for future WBG-wide global programs in strategic proving basic service delivery; strengthening systems; priority areas, such as climate change, pandemic pre- expanding coverage, equitable access, and quality, and paredness and resilience, or fragility. supporting employment opportunities to bolster eco- nomic recovery. It was necessary to ensure the protection of essential workers and beneficiaries in both emergency 37 IDA countries response and service delivery to prevent or reduce the supported to implement pandemic preparedness plans risk of infection. This often involved implementing new procedures or making additional investments, for exam- “ ple, conducting COVID-19 or temperature screenings, providing additional sanitation measures, and imple- menting physical distancing protocols when delivering During COVID-19, we drew on the experience routine health services, education, and social assistance. from the Ebola crisis by having School Safety As understanding of COVID-19 transmission and risks evolved, so too did IDA’s approach to providing emer- Protocols in place and equipping schools gency response and service delivery. Alongside a surge with face masks, soaps, buckets, and infrared in new financing, existing HD operations were repriori- thermometers. tized and restructured to respond to changing needs. It -Head Teacher of a Primary School, Sierra Leone ” is important to note that effective pandemic responses in partner countries built on decades of health systems strengthening. Often the largest external financier for health systems, IDA provides support at scale to help The pandemic exposed the need for more extensive pre- smooth the way for governments to maintain, improve, paredness and resilience building measures to prevent and expand essential services. far-reaching social and economic consequences. The 2003 Severe Acute Respiratory Syndrome (SARS) out- A key lesson from IDA19 was the importance of resilient, break, the 2014–16 Ebola outbreak in West and Central adaptable, and adequately resourced systems. Across Africa, and the 2015–16 Zika outbreak had highlighted the HD sectors, countries with robust systems that in- the need for heightened focus on disease prevention, cluded data, institutional and operational flexibility, and preparedness, and response to safeguard lives and pre- a level of preparedness for shocks were able to respond vent macroeconomic shocks and costly emergency re- more effectively to pandemic-related disruptions. Some sponse measures. However, the same cycle of “panic and leveraged innovations that improved their effectiveness. neglect” followed each event, leaving many IDA coun- At the same time, countries with weaker systems tended tries ill-prepared for the COVID-19 pandemic. Reflecting to have more significant human capital vulnerabilities this reality, a Governance and Institutions PC supported and were hindered in their responses. 37 IDA countries to implement pandemic preparedness plans. The support exceeded the target of 25 countries, Health: The MPA framework project—The COVID-19 as IDA countries saw how plans could bolster their readi- Strategic Preparedness and Response Program —helped ness for future crises. IDA countries were also able to draw IDA rapidly scale up health operations for pandemic re- on the existing Health Emergency, Preparedness and sponse, helping save lives in IDA countries. The MPA Response Program to complement IDA financing, with provided a template of key documents with common some countries better prepared following engagement components, operational flexibility, shorter clearance in regional programs, such as the West Africa Regional times, and delegated approvals. The WBG has been sup- Disease Surveillance Systems Enhancement project. porting the largest vaccination effort in history to stop the 29 INVESTING IN GROWTH, PEOPLE, AND RESILIENCE Box 2.5 IDA’s response: Strategic preparedness and response program using a Multiphase Programmatic Approach As the pandemic unfolded in early 2020, the WBG acted quickly to support IDA and IBRD countries to respond. A Fast Track COVID 19 Facility was established in March 2020, totaling $14 billion ($6 billion from IDA/IBRD, and $8 billion from IFC). Shortly thereafter, the Bank used emergency procedures to prepare the Global COVID-19 MPA for the first time at global scale. On April 2, 2020, less than a month later, the Board approved a $6 billion financing envelope for the Global COVID-19 MPA. The WBG financing allocated specifically for health response has included $6 billion for the Global COVID-19 MPA, $2.7 billion in the existing Bank portfolio redirected to COVID-19 response, and $4 billion in IFC’s Global Health Platform. In October 2020, additional financing was approved to significantly expand Bank support to client countries, including for newly developed COVID-19 vaccinations, bringing the total close to $25 billion. The MPA was designed to facilitate a particularly swift response through a COVID-19 Strategic Preparedness and Response Program. The SPRP rapidly committed substantial resources, complementing funding by countries and activities supported by other partners, for a rapid emergency response to the pandemic. As of January 16, 2023, total commitments under the MPA operations (including the additional finance approved in October 2020) stood at $14.3 billion, with total disbursements at $9.35 billion or 65 percent of overall commitments. The MPA operations were launched in 23 FCS countries, while the additional finance operations are being implemented in 32 FCS countries. The MPA and additional financing operations are benefiting about 4.1 billion people, or about 51 percent of the world’s population, in 98 countries. By November 2022, 632 million COVID-19 doses had been purchased with WB financing, of which 484 million have been delivered. Half of Bangladesh’s population accessed vaccinations with support from IDA through procurement of vaccines and syringes. The MPA Program managed to achieve economies of scale with limited resources, notwithstanding considerable uncertainty and multiple constraints in the early stages of the pandemic. The flexibility enabled by the MPA design facilitated adjustments to accommodate emerging evidence and evolving needs at the country level. The Bank’s emer- gency response was particularly swift in the most vulnerable countries facing human capital and development losses. 30 INVESTING IN GROWTH, PEOPLE, AND RESILIENCE The focus on the COVID-19 surge response, along with weaknesses in underlying health systems, posed risks to the provision of essential health services, such as prenatal care, childhood vaccinations, Human Immunodeficiency Virus (HIV) prevention and treatment, Tuberculosis (TB) treatment, and non-communicable disease prevention and treatment. Globally, widespread disruptions led to a “secondary pandemic” and the reversal of decades of gains made in improving health outcomes. Aware of the potential risks, IDA remained focused on supporting cli- Box 2.6 Limiting learning loss in Sierra ents to deliver these essential health services and to mit- Leone igate losses. IDA countries were also able to use the support from the Global Financing Facility for Women, In Sierra Leone, IDA helped limit children’s learn- Children and Adolescents to protect essential services. ing losses during the pandemic through the Free Education Project. A distance-learning component As a result, over the IDA19 cycle, IDA achieved or slightly reached about 1.4 million children, including 700,000 exceeded the target range of beneficiaries on nutrition girls, during the period when all schools were closed. services, routine vaccinations, and births attended by A return-to-school component introduced COVID- skilled delivery personnel. 19 prevention measures, equipping all primary and secondary schools with hygiene and safety products, Education: During school closures, country programs such as face masks, soap, buckets, and infrared ther- responded with innovations to ensure continued learning mometers. About 2 million students benefited from and service delivery. First, lessons were delivered virtually this support. where internet and Wi-Fi infrastructure were available. “I like to listen to the radio program, as it is interactive In poorer contexts, lessons were designed for delivery and fun! Additionally, I received printing material as through television and radio program broadcasts. Basic additional learning support,” said Fatmata, a Junior PPE was procured and distributed to schools and training Secondary School Student. institutions to facilitate the safe reopening of education institutions. This was combined with campaigns to prevent school dropouts and encourage parents to allow their chil- Implementation of education projects in IDA19 under- dren to return to school. For example, millions of students scored the importance of building resilient education in Sierra Leone benefitted from IDA-supported distance systems. While closing schools initially was an important learning and return-to-school interventions (Box 2.6). means of reducing COVID-19 transmission, repeated and extended closures led to immense learning losses.38 IDA also supported skills development to help youth The experience highlighted the irreplaceable role that recover from employment disruptions caused by the schools play in facilitating socialization and providing pandemic. IDA19 supported 21 projects in 14 countries equal opportunities to students. It also made clear that to improve skills and employability of youth, aiming to technology can enhance – but not replace – the essential help them access more and higher-quality jobs as mar- role of teachers. Finally, a central lesson was that many kets reactivated after the pandemic.37 IDA19 projects education systems were ill-prepared for the sudden also helped establish strategic partnerships to promote and extended lockdowns. Building resilient educations employment through regional market integration and systems requires a national vision and plan, technology value chains. For instance, IDA19 helped African Centers ecosystems to close the digital divides in connectivity, of Excellence develop higher-level skills development devices, digital teaching, and access to learning content. needs and innovative research in priority sectors with And it requires teachers trained on technology as well as high employment potential. parents supportive of the education process at home and in communities. 31 INVESTING IN GROWTH, PEOPLE, AND RESILIENCE Social Protection: IDA’s scale-up of social protection IDA’s social protection response largely built on preexist- support was comparable to its scale-up for the health ing engagement, demonstrating how sustained engage- sector. In fact, in FY21, the highest volume of IDA com- ment pays off in the long term. Fortunately, many social mitments went to social protection operations, saving protection projects supported by IDA already included lives and livelihoods by helping to smoothen and miti- a shock-response or contingency element to counteract gate consumption shocks. The MPA included social and economic, social or climate shocks. A recently published financial support for households for two reasons. First, guide to their design and usage provided an important the adverse effect of health impacts and COVID-19- source of expertise.39 Established programs that included related restrictions on jobs and livelihoods would require adaptive or shock-response measures and had better de- significant mitigation to prevent sudden, deep, and po- livery systems were able to respond most quickly to the tentially irreversible income losses, which would in turn new needs. Given the life-line nature of social assistance have adverse impacts on people’s health and well-being. to many long-term poor in IDA countries, a priority chal- Second, social assistance would provide households with lenge was to simply maintain programs while avoiding a financial cushion to allow them to adhere to COVID-19 direct physical contact. IDA worked with clients to adjust mobility restrictions and quarantine rules by providing and adapt tools and design features, such as payment the financial wherewithal to stay home rather than being methods. Programs that were designed with conditions forced to enter busy marketplaces or city centers to trade were altered, for example the work requirement was goods. The value of COVID-tagged social protection temporarily dropped from cash-for-work programs or the projects reached $6.1 billion over IDA 19. requirement to attend classes was waived where schools were closed. Digital registration, identification systems, onboarding, and payments were expanded or introduced Box 2.7 Adjustment to the Ethiopia where possible, including in FCV settings. In-person pay- Urban Productive Safety Net ment sites required social-distancing, mask-wearing, tem- perature checks and handwashing, and the use of biomet- In response to the COVID-19 pandemic and economic ric fingerprints to authenticate identity was scaled back. downturn, the Ethiopia Urban Productive Safety Net Project adapted its modalities and expanded its coverage to provide temporary cash transfers to the 2.3.2. Debt urban poor who had lost their jobs and livelihoods due to the crisis. When the COVID-19 virus first hit, Public debt was established as a cross-cutting theme un- the project team acted quickly to distribute soap and der IDA-19 to address vulnerabilities in a comprehensive gloves to beneficiaries. It also temporarily suspended and integrated manner. The main building blocks of IDA’s the public works requirement to receive benefits until support to help client countries mitigate debt vulnerabil- COVID-19 sensitive guidelines were developed that ities have remained consistent over time and are aligned allowed beneficiaries to work at a safe distance from with the joint World Bank-IMF multi-pronged approach one another. To enable beneficiaries to afford food (MPA) on debt. The debt MPA has been instrumental in amid rampant price gouging, the program advanced scaling up capacity development, debt transparency ef- three months’ cash transfer payments in one single forts, and creditor outreach, and has achieved important payment and later increased the benefit amount. progress.40 The framework aims at strengthening public debt transparency and capacity development through technical assistance, tools for public debt analysis, en- hanced integration of assistance in operations, and the adaptation of World Bank and IMF policies. It also aims at strengthening outreach activities to creditors, which led, among other things, to the development of the G20 bilateral financing self-assessment tool. Significant TA support is provided to IDA-eligible coun- tries on debt policy and debt management issues, through the Debt Management Facility (DMF). The DMF is a multi-donor trust fund which offers advisory services, training and peer-to-peer learning to help more than 80 32 INVESTING IN GROWTH, PEOPLE, AND RESILIENCE developing countries strengthen debt management ca- arrears to IDA, which was made possible through a $1.15 pacity, processes, and institutions. The DMF continued billion bridge loan from the United States and reim- to support TA despite the impacts of COVID-19. In FY22 bursed with the proceeds of an IDA Development Policy alone, the DMF delivered 116 activities, which was the Grant primarily funded from IDA’s Arrears Clearance Set highest number of missions and trainings since inception Aside. Following the arrears clearance, and subsequent of the third phase of the program. Decision Point milestone, IDA unlocked nearly US$2 billion in grants for poverty reduction and sustainable The World Bank and the IMF supported the implementa- economic recovery. This financing was matched by $410 tion of the G20 Debt Service Suspension Initiative (DSSI). million of financing from other donors aimed at facilitat- The DSSI provided eligible countries with temporary ing Sudan’s reengagement. liquidity and fiscal space to address the effects of the pandemic. Forty-eight out of 73 eligible countries partic- Under the World Bank’s broader debt agenda, IDA19 ipated in the initiative between May 2020 and the end of- introduced the Sustainable Development Finance Policy, 2021, benefitting from $12.9 billion in suspended debt an initiative to address debt vulnerabilities and com- service payments. The three largest beneficiaries of the plement debt-related policy commitments. The median DSSI for both 2020 and 2021 were Pakistan, Angola, and government debt-to-GDP ratio in IDA countries reached Kenya. The World Bank supported DSSI implementation 46 percent in 2018. At the start of IDA19, 37 of 68 IDA by monitoring spending, enhancing public debt transpar- countries covered by the joint WB-IMF Low Income ency, and ensuring prudent borrowing. The World Bank Countries Debt Sustainability Framework were assessed and the IMF are also supporting the implementation of to be at high risk of debt distress or in debt distress. the Common Framework for debt treatments beyond the The countries were disproportionately FCV and/or Small DSSI. During the two-year period, IDA committed signif- States. Under the JET and G&I Special Themes, the World icant concessional resources to three countries that had Bank systematically addressed sustainable financing in requested debt relief under the Common Framework, countries at moderate or high risk of debt distress and representing over $4.4 billion in concessional support to supported improved debt transparency. The SDFP was Ethiopia (of which $2.6 billion was in grants), $1 billion also launched during the cycle in coordination with the to Chad all on grant terms, and concessional support on World Bank-International Monetary Fund Multipronged blend terms Zambia of $0.7 billion. Blend terms include Approach to address debt vulnerabilities. It replaced the a grant element of 35 percent. The financing to Zambia Non-Concessional Borrowing Policy (NCBP), which had thus represented the equivalent of a $200 million grant. been in place since 2006. It was designed to apply to all IDA countries, address both external and domestic Country authorities, the World Bank, and the IMF public debt, incentivize reforms, and promote creditor brought Sudan to a Decision Point under the Highly coordination. The SDFP is structured around two pillars. Indebted Poor Countries Initiative in June 2021. In June 2021, Sudan became the 38th country to begin receiv- The SDFP’s Debt Sustainability Enhancement Program ing debt relief under IDA’s enhanced Heavily Indebted (DSEP) pillar incentivizes progress toward sustainable Poor Countries Initiative. Upon reaching this milestone, borrowing and investment practices. Under the DSEP, known as the HIPC Decision Point, IDA began providing all IDA countries are screened annually for debt-related debt relief to support Sudan in implementing essential vulnerabilities and required to prepare Performance and reforms. The debt relief freed up resources to tackle pov- Policy Actions (PPAs) if their debt vulnerabilities are ele- erty and improve social conditions. The Decision Point vated. Fifty-five IDA-eligible countries were required to also marked the normalization of Sudan’s relations with prepare PPAs in FY21, and 58 were required to do so the international community, enabling access to critical in FY22. PPA implementation included a strong focus on additional financial resources to strengthen the economy debt transparency, fiscal sustainability, and debt man- and improve social conditions. Ahead of this milestone, agement. More than 90 percent of countries successfully and recognizing the once-in-a-generation window of op- implemented their PPAs. Those that did not were subject portunity for Sudan to chart a path out of FCV, IDA was to a set-aside of a portion of their performance-based quick to make full use of its instruments to support the allocation (PBA) for the following fiscal year, which could transition. IDA provided pre-arrears clearance grants of be recovered if satisfactory implementation was com- $410 million through the Sudan Family Support Program. pleted within two years.41 Key to Sudan’s reengagement was the clearance of its 33 INVESTING IN GROWTH, PEOPLE, AND RESILIENCE IDA launched a Program of Creditor Outreach (PCO) un- der the second SDFP pillar to facilitate information-shar- Box 2.8 Pilot Program of the Creditor ing, dialogue, and coordination among creditors. Outreach in Uganda – Coordinated, Building on IDA’s global platform and convening role, the country-level action as key to PCO aimed to promote joint action in addressing addressing debt vulnerabilities debt-related risks. Working closely with the IMF, other The SDFP’s first in-country outreach was co-hosted by MDBs, and bilateral creditors, the PCO convenes part- the Government of Uganda in May 2022. The event ners at the global, regional, and country levels. Virtual comprised a conference to engage the public, civil ministerial-level discussions in September 2021 and April society, academics and media in discussions about 2022 considered practical measures to promote debt public debt, closed-door discussions between policy transparency for sustainable financing.42 Virtual events for makers and strategic creditors, and focused trainings the Caribbean (July 2021), Pacific Island countries for technical personnel. The conference supported broad public awareness, while the closed-door (November 2021), and Eastern and Southern Africa sessions engaged strategically important Paris and (February 2022) regions addressed topics specifically tai- non-Paris Club creditors as well as private sector lored to those regions and engaged more than 50 na- creditors with the authorities. Participants candidly tional and institutional stakeholders. As travel restrictions discussed the challenges and opportunities in began to ease in the last months of IDA19, the PCO held financing Uganda’s development priorities. Senior its first in-country event in Uganda (Box 2.8). A November representatives of multilateral banks, IFIs, devel- 2021 review by the WBG’s IEG concluded that it was too opment partners and commercial banks discussed early to assess the impact of the PCO,43 but these initial ongoing programs and pathways for increasing the events suggest that the PCO can be effective in conven- Government’s absorption capacity, enlarging the ing a wide range of stakeholders to promote stronger financing envelope, and creating much needed fiscal collective action, greater debt transparency, and closer space. Participants agreed that closer collaboration coordination between borrowers and creditors to miti- between policy makers and financiers and develop- ment partners should contribute to enhanced debt gate debt-related risks. sustainability. A separate technical workshop for the Ministry of Finance and officials from the central bank, Despite the challenging circumstances of the pandemic many of whom are directly involved in implementing and other global crises and the intensive effort required, PPAs, promoted collaboration with WBG experts to SDFP implementation progressed steadily and remained identify future programmatic PPAs. It revealed some relevant. Globally, debt sustainability deteriorated during bottlenecks within the Ministry of Finance and has the pandemic and is expected to worsen further due triggered some thinking within the Ministry. The to the fallout from the war in Ukraine. The impacts are PCO revived collaboration between authorities and particularly pronounced in IDA countries. Strengthening creditors that had been dormant for several years debt management, enhancing debt transparency, and due to the pandemic, revealed some bottlenecks that improving fiscal sustainability through the SDFP are had affected the reform process, and prompted new therefore critically important policy measures that can thinking about how to improve proactive communica- tions with creditors. increase IDA countries’ resilience to future shocks. PPA preparation during the cycle required intensive, often it- erative, engagement, due to the demands of implement- ing COVID-19 responses. Implementation was delayed in some cases, but rigor and strong collaboration among Bank teams aided SDFP processes, and apart from two countries,44 most PPAs were implemented successfully. 34 INVESTING IN GROWTH, PEOPLE, AND RESILIENCE As SDFP implementation continues, countries that face clinics and offered project-specific TA to IDA task teams capacity constraints will benefit from an incremental ap- preparing projects. For example, the Global Disability proach the focuses on building their capacities. Capacity Inclusion team organized a deep dive session on JET# 7 constraints make it challenging for Small States and FCS for focal points, task team leaders and practice manag- countries to prepare new and transformative PPAs ev- ers in the WB’s Finance, Competitiveness and Innovation ery year. The SDFP allows these countries to focus on Global Practice (GP) in Africa and South Asia. two annual PPAs, rather than the three required in other countries, and ensures that country teams support au- But the IDA19 cycle provided clear evidence of chal- thorities to articulate focused and impactful PPAs that lenges as well as lessons learned. Persons with disabili- realistically account for implementation capacity. Some ties were often at increased risk of contracting COVID-19 PPAs are designed in a programmatic manner to build because information about the disease, including its capacity incrementally. This process can support sus- symptoms and the methods of prevention, was not com- tainable reforms as the DSEP continues. Accompanying monly provided in accessible formats such as print ma- DSEP with consistent global, regional, and country out- terials in Braille, sign language interpretation, captions, reach through the PCO will be an important complement audio provision, or graphics. These challenges were not to support SDFP objectives. These and other lessons are adequately captured through disability disaggregation in explored in depth in the IDA20 Mid-Term Review of the data collection on the impacts of the pandemic, which Sustainable Development Finance Policy, which accom- compounded the issue as it led to decreased attention on panies this IDA19 Retrospective. persons with disabilities during the rapid project prepa- ration phases of COVID-19 emergency funding projects. 2.3.3. Disability Inclusion Some IDA projects nevertheless addressed the needs of persons with disabilities, such as the Rwanda COVID-19 IDA19 scaled up support for inclusion of people with dis- Emergency Response Project and Global Partnership for abilities. All six disability inclusion commitments met their Education (GPE) Additional Financing on COVID-19 proj- two-year adjusted targets. Five of the six exceeded the ects in Ethiopia, Nepal, and Rwanda. targets. Sixty-three percent of IDA operations supporting digital services and entrepreneurship in MSMEs included The Inclusive Education Initiative MDTF invested in disability inclusion, against a target of 50 percent, and analytics to explore the effects of school closures and 14 countries were supported to improve the skills and remote learning on children with disabilities and their employability of persons with disabilities, exceeding the families. The analyses helped to address the scarcity of target of 10. In IDA FCS countries, 14 country portfolios information about how the pandemic impacted people supported improvements in social sector service delivery with disabilities. The findings indicated that children with for persons with disabilities (against a target of 10), while disabilities were significantly impacted by the pandemic, 16 countries were supported on universally accessible as they had reduced access to necessary assistive tech- GovTech (against a target of eight). Between FY15 and nology and accommodations at home, remote lessons FY21, 31 IDA countries received support to include a full were not in accessible formats, and a loss of daily living or partial set of the Washington Group Set of Questions support that parents may not have been able to afford on Disability in statistical operations. This effort is help- during an emergency. These lessons will inform the de- ing to develop disability data that is comparable across sign of education, health, social protection, and digital countries. development projects under IDA20 and beyond. A cross-practice Disability Inclusion Monitoring Committee A key lesson from IDA19 was the importance of designing (DIMC) on IDA19 ensured peer-to-peer learning, knowl- policy commitments in a manner that aids their monitor- edge-sharing, and progress-monitoring. At the onset ing. Disability inclusion was added to the IDA19 PC de- of IDA19, staff knowledge and regional uptake were velopment during a later stage of the drafting process, identified as potential challenges to meeting the disabil- and as a result, a few commitments had to be retrofitted ity inclusion PCs, which led to the development of five to include disability. This led to some challenges in devel- technical guidance notes in the areas of Education, Social oping and implementing monitoring methodologies. The Protection and Jobs (SPJ), JET, GovTech, and Disability- insight from IDA19 helped build the case for the stand- Disaggregated Data. To build staff capacity on disability alone IDA20 PC#6 commitment under Human Capital inclusion, the Global Disability Inclusion team hosted Special Theme from the onset. The heightened focus on 35 INVESTING IN GROWTH, PEOPLE, AND RESILIENCE disability inclusion in IDA19 also led to ripple effects in Technology played a role in four Special Themes. Under incorporating disability inclusion in pandemic-related proj- Gender and Development, project financing helped im- ects. Additionally, IDA’s experience had a spillover effect prove women’s access to higher productivity jobs through in IBRD client countries, with disability inclusion gaining digital skills development. Adoption of GEMS technol- traction in countries such as Romania, India, and Uruguay. ogy in FCS countries contributed to the FCV Special Theme and helped enhance project implementation, 2.3.4. Technology supervision, monitoring, and coordination. Technology contributed to G&I commitments by responding to de- Driven by the pandemic, the Technology Cross-cutting mand for e-procurement systems and GovTech solutions Issue experienced strong demand and delivery. The and contributed to JET by incorporating digital financial COVID-19 crisis has highlighted the pressing need to inclusion and/or digital entrepreneurship elements in half bridge the digital divide in IDA countries, particularly in of IDA-supported projects focusing on MSMEs. Digital fi- the context of recovery and long-term resilience efforts. nancial inclusion, for example, was a focus of IDA support Adopting transformative technology in these countries in Niger, where the number of mobile money accounts can help kickstart a green, inclusive, and resilient re- more than doubled. Furthermore, over 60 percent of cit- covery. Of the seven Technology-related PCs, IDA met izens who gained the ability to make and receive mobile six, with results significantly exceeding their targets. financial payments for the first time were women. Box 2.9 The World Bank’s Digital Economy for Africa (DE4A) Initiative and IDA19 IDA19 supported the creation of dynamic digital economies with the potential to transform private and public sectors and, ultimately, accelerate development. As a cross-cutting issue, digital development can support productivity growth in key sectors such as agricultural or trade, strengthen business continuity planning for governments and businesses in times of crisis, facilitate structural transformation of public service delivery, contribute to new, high-productivity sectors, promote new and more inclusive forms of market connectivity, and broaden job opportunities for all. IDA is committed to closing the digital infrastructure gap. Thanks to the contributions of major IDA-supported initia- tives such as the DE4A, access to broadband internet in Africa grew from 29 to 36 percent between 2020 and 2022, providing 21.2 million beneficiaries with new or enhanced access to broadband internet across 54 countries, includ- ing 40 IDA countries. First launched in 2019, DE4A supports the bold vision of the African Union’s (AU’s) Digital Transformation Strategy 2020–2030 to enable every African individual, business, and government to have broadband internet access by 2030. DE4A supports a comprehensive approach. It combines connectivity infrastructure development, creation of new markets, construction of digital platforms for access to finance and markets, and strengthening of regulatory frame- works, and skills development. The cross-sectoral approach leverages a range of WBG instruments, expertise, and institutions, and helps to create a digital ecosystem with opportunities for broader economic growth, innovation, and job creation. Relying on a sound analytical framework developed under DE4A, Digital Economy Country Diagnostics provide a snapshot of the digital economy in participating countries and recommend actions to inform national decision-making. Recommendations include a mix of possible policy reforms, investments, and capacity-building activities that all help advance key IDA priorities. Often building on the diagnostics, the WB has delivered 42 digitalization projects in support of DE4A, for a total value of $6.13 billion in 30 African countries (including IBRD). These included the IDA19-financed FY21 Ethiopia Digital Foundations project ($200 million to increase the inclusiveness and affordability of digital services and digital job creation) and the FY22 Ghana Digital Acceleration project ($200 million to expand access to broadband, enhance the efficiency and experience of selected digital public services, and strengthen the digital innovation ecosys- tem). Eleven Development Policy Financing operations complemented these investments with connectivity-related Prior Actions in 10 countries. For example, the Cameroon Digital Economic Country Diagnostic, completed under IDA18, provided analytical underpinning and recommendations to the FY21 Third Fiscal Consolidation and Inclusive Growth DPF ($100 million), which supported the telecom sector reform. It also informed the Acceleration of the Digital Transformation of Cameroon project ($100 million) approved in FY22 which aimed to: (i) increase digital inclusion by providing comprehensive TA for legal, regulatory, and telecommunications policy reforms; (ii) expand broadband connectivity to rural areas; and (iii) foster the use of digital solutions in agriculture. 36 INVESTING IN GROWTH, PEOPLE, AND RESILIENCE IDA continued to support expanded broadband pene- indicator. Country Partnership Frameworks have also tration. While the JET target of supporting broadband seen a steady increase in satisfactory outcome ratings, penetration was marginally missed by one country, many with a 14-percentage-point increase since FY20, though countries experienced significant increases in broadband this indicator did not quite meet the expected value. It is access, with notable benefits for women. Coverage ex- important to note that IEG outcome ratings reflect oper- panded dramatically in Ethiopia (where 4G mobile net- ations that closed during the IDA19 cycle and may not work now reaches close to 95 percent of the population), yet fully reflect the impact of the pandemic. in Cabo Verde (where half of current unique 3G+ mobile broadband subscribers are now female), and Niger (where The Bank’s continual focus on improving the quality of mobile broadband penetration for women has more than its own performance supports strong project and coun- tripled), while fixed broadband penetration has doubled try outcomes. IEG’s ratings of the Bank’s overall perfor- in Rwanda. This expansion in access was accompanied mance, performance at entry, and performance during by welcomed improvements in the quality of service. supervision all saw improvements during the IDA19 cycle. In Tanzania, for example, average download speed has Similarly, IEG ratings show a significant improvement in more than doubled over the course of IDA19, while the the quality of monitoring and evaluation (M&E) in IDA- price of monthly mobile internet service dropped twelve- financed operations, with that indicator increasing 14 per- fold in Ethiopia. centage points since FY20, surpassing its expected value for the first time in FY22 (including for IDA FCS countries). 2.4. IDA’s Operational and Organizational Effectiveness: RMS Tier 3 Indicators “ There was no time to pause in operations, as the Despite the challenging context, IDA’s strong operational client and beneficiaries were waiting for results effectiveness, which is tracked in Tier 3 of the RMS, en- on the ground. As a team, we found ways to abled its robust delivery of results across the Special overcome the extra layers of complexity that Themes and Cross-cutting Issues. IDA19 saw a continued positive trend in satisfactory outcomes of its operations, operational work faced during lockdown and as rated by the IEG. With nearly 85 percent of IDA oper- the pandemic. ations achieving satisfactory outcomes (as a share of -Urban TTL commitments), IDA surpassed the expected value on this Figure 2.11. ” Increasing Share of IDA Operations Achieve Satisfactory Outcome Ratings Satisfactory outcomes, as share of commitments Satisfactory outcomes, as share of commitments 87 83 81% 85% 81 79% (%, IEG ratings, 3-year rolling) (%, IEG ratings, 3-year rolling) 85 85% 79 77% 83 83% 77 76% 76% 82% 81% 75 75% 81 73 80% 79 71 69 77 67 75 65 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 IDA18 IDA19 IDA18 IDA19 Share Target Indicator: Satisfactory outcomes of IDA operations, as share of commitments Indicator: Satisfactory outcomes of IDA operations, as share of operations 37 INVESTING IN GROWTH, PEOPLE, AND RESILIENCE “In-person missions are really the problem- Operational teams implemented measures to mitigate emerging risks related to the multiple crises, resulting in a stable proportion of high-risk projects in the portfolio. solving opportunities to discuss what’s really Mitigation measures included intensified client dialogue, working well and what we can do to adjust and hybrid and hands-on WB implementation support, use of improve. A lot of the projects really suffered third-party monitoring, capacity building and strengthen- from the absence of that. Some issues only ing clients’ own system, project restructuring as required, emerge when you go and see them in the field. and collaboration with key partners including UN agen- There are things that people told us about in cies. Average risk ratings in the IDA portfolio increased slightly in FY22, with 49 percent of all IDA operations and person, which they will never tell you about in 53 percent of operations in IDA FCS rated as substantial e-mail or on the phone. risk by the end of FY22. Proactivity increased in FY22, in -Social Development TTL part due to the resumption in supervision travel. ” Despite disruptions caused by COVID-19, clients reported Though challenging, private capital mobilization has steadily increased since FY20. Total private mobilization more positive feedback regarding WBG effectiveness, in IDA countries in FY22 was $7.92 billion, a 50 percent in- impact on results, responsiveness, and staff accessibility. crease from the amount mobilized in FY20. This includes This is noteworthy, given the challenges caused by travel $4.88 billion from IFC, $1.7 billion from the World Bank, restrictions and the broad impacts of the pandemic on and $1.34 billion from MIGA. In IDA FCS countries, total many aspects of life. IDA took timely actions to address private mobilization from the three institutions has more problem projects, as reflected in the proactivity index, than tripled since FY20, reaching $3.1 billion. Sixty-two which surpassed its expected value, including in FCS. Not percent of the total private mobilization in FY22 came surprisingly, the Facetime index in FCS countries declined from indirect mobilization. significantly in FY21, but it started to show signs of recov- ery by FY22. One of the ways that IDA addressed con- As the pandemic amplified the impacts of inequality, IDA straints on travel was by building client capacity to collect continued to emphasize inclusion. The use of beneficiary and analyze geo-tagged data, using digital tools. IDA feedback indicators at design has reached nearly all IDA surpassed its expected value on this indicator. Overall, projects, standing at 98 percent. IDA has also focused the quality of the World Bank’s knowledge and TA re- increased attention on disability inclusion, through an mained strong, with 90 percent of Advisory Services and RMS indicator monitoring the share of Investment Project Analytics (ASA) having accomplished their objectives and Financing (IPF) operations that applied the concept of positive client feedback on WBG knowledge in IDA coun- universal access at design. This has increased to over 28 tries. Finally, client feedback on WBG collaboration with percent, but continued focus is needed to ensure that other donors improved, though this indicator fell slightly IDA-supported projects are accessible to all. below the expected value. Building on the foundation of IDA19 results, IDA20 en- “ Work-life balance suffered. On top of the hances the RMS with greater outcome-orientation. The revamped RMS captures more outcomes, offers more dis- aggregation, and includes new indicators on important intense workload, we were all learning how to issues. While maintaining its three-tiered structure, the work online as well with people in different time IDA20 RMS presents new features, including: (i) vertical zones, often learning as we went along about linkages across tiers to better connect IDA’s contributions things like sending Webex invites. We also to country-level outcomes; (ii) new indicators that reflect became accustomed to the 24/7 schedule where strategic priorities across IDA20 Special Themes and Cross-cutting Issues; (iii) monitoring of long-term prog- it became ok to call people late at night for ress made in IDA countries by retaining indicators from anything. I think it’s very important that we take previous IDA cycles; and (iv) increased alignment with the time to go back to more normal work patterns. SDGs. The IDA20 RMS also reorganizes Tier 3 indicators - Africa Human Development Portfolio Advisor into processes that are essential to manage for outcomes. ” These changes will enable IDA to draw lessons from 38 INVESTING IN GROWTH, PEOPLE, AND RESILIENCE implementation and surface knowledge gaps, thereby the portfolio The disbursement ratio, tracked in the IDA further advancing IDA’s outcome orientation. RMS, remained on par with previous IDA cycles at 19.1 percent, even while the size of the portfolio at the end of Strong disbursements provided a foundation for the IDA19 was 21 percent higher compared to IDA18 (Figure results IDA19 achieved. The undisbursed balance as a 2.12). This demonstrates IDA’s implementation capacity share of the active portfolio remained well within histor- and client countries’ absorptive capacity. ical averages despite a significant increase in the size of Figure 2.12. Undisbursed balance as a share of the active portfolio on par with previous IDA cycles despite increase in portfolio size 61% 60% 60% 200 58% 57% 60% 150 21% 45% US$ billion 100 30% 50 15% 0 0% FY18 FY19 FY20 FY21 FY22 IDA18 IDA19 Net Commitments Undisbursed Balances % Undisbursed Balances of Active Portfolio 2.5. IDA Knowledge and IDA’s investment in knowledge and technical expertise Partnerships informs policy dialogue as well as the design of effec- tive interventions. Core and extended core diagnostics, While IDA’s financial support to operations is its most technical notes, and other analytical tools are part of the visible aspect, operational delivery builds on a wealth of regular arsenal of knowledge and analytics IDA produces analytical and knowledge products to ensure that financ- to identify critical gaps and to design operational solu- ing is used to best effect. Incorporating existing evidence tions. IDA-funded operations in every sector and country into project design and utilizing iterative trial-and-adopt benefit through more impactful targeting and design, approaches to generate new knowledge can enhance which contributes to the results presented in this report. project design and maximize development impact. As More broadly, IDA also develops and tests new solutions emphasized in the World Bank’s Strategic Framework to old problems by strategic and intentional investments for Knowledge and as discussed in the ongoing Bank to find rigorous evidence. One example with relevance Evolution Roadmap exercise, learning from projects and for IDA19 is the growing number of impact evaluations deploying this knowledge to improve development im- that sought to uncover what works - and what does pact is a strong area of comparative advantage for IDA not - to close critical development gaps in areas such as and the World Bank as a whole. These strategies include earnings, productivity, assets, and agency. Findings from building local project management and analytical ca- this growing portfolio helped equip project teams and pacity and systematically using data and experiments to policy makers with the evidence that they need to design inform operational decisions. innovative and scalable interventions. (Box 2.10) 39 INVESTING IN GROWTH, PEOPLE, AND RESILIENCE The WBG has consistently used its convening power and based on mandates/competencies, improve efficiencies, partnerships creatively to build bridges for impact among and limit aid fragmentation. They cover: (i) country co-or- different stakeholders. For IDA, a multitude of partner- dination; (ii) financial partnerships (co-financing); (iii) im- ships encompass a broad range of entities and goals. They plementation, monitoring, regulatory and reporting part- include global, regional, and country-level partnerships nerships; (iv) knowledge and learning partnerships; and with multilateral institutions, civil society organizations (v) strategic partnerships. This report provides examples (CSOs), the private sector, foundations, think tanks, and of such partnerships as part of the Special Themes and others. These partnerships aim to maximize collective im- Cross-cutting Issues sections, and elsewhere. pact, mobilize resources, engage clients, create synergies Box 2.10 Examples of IDA19 projects that benefited from impact evaluation evidence IDA19 drew on a growing body of rigorous evidence to inform programming across a range of sectors in many coun- tries. For instance, IDA’s focus on job creation for the most vulnerable was enhanced by evidence from impact eval- uations carried out by the World Bank’s Africa Region Gender Innovation Lab, helping develop the most effective interventions for women entrepreneurs to tackle the skills and capital barriers they face – and directly contributing to PCs in both the Gender and Jobs and Economic Transformation Special Themes. One example is the $300 million IDA operation, Empowering Women Entrepreneurs and Upgrading MSMEs for Economic Transformation and Jobs in the Democratic Republic of Congo, which aims to enhance growth of women-owned MSMEs. The project scales up the effective psychology-based entrepreneurial mindset (personal initiative) training to 25,000 women based on evidence and learning from the DRC Small to Medium-sized Enterprise (SME) Growth and Development Project. The project identifies women who are self-employed or entrepreneurs with growth ambitions in project priority sectors and helps them develop an “entrepreneurial mindset” combined with large cash grants. IDA19 was also supported by solutions to speed up the pace of learning to improve agricultural productivity in a changing climate, building on new knowledge from the World Bank’s Development Impact group (DIME). In one example, evidence from impact evaluations improved strategies for reaching the rural poor in Mozambique’s agricul- ture sector where poverty is most concentrated, and the risks presented by climate change are most pressing. Evidence showed that training female farmers to teach their neighbors about agricultural practices could improve learning and take-up of sustainable land management beyond levels achieved by the existing training model. An impact evaluation of a $55 million IDA investment that constructed irrigation infrastructure showed how water-user groups could elimi- nate water scarcity among their members through improved management, with the simplest information interventions proving to be the most cost-effective means to realize these gains. 40 INVESTING IN GROWTH, PEOPLE, AND RESILIENCE “ For an analytical piece, it was challenging As part of the IDA20 replenishment negotiations, Management agreed to deliver a review of how IDA part- ners with other development actors and present the find- to engage a large group of government ings at the IDA20 Mid-Term Review. The work will com- stakeholders across the whole sector and plement research on trends in official financial flows and obtain necessary data. We relied a lot aid architecture published during IDA1945 and early in IDA on local resources, including the World 20.46 The work shows that while financial flows to develop- Bank country office staff and UN teams. ing countries have increased steadily over the last decade, private lending, rather than official finance, has been a UNICEF was excellent. These local partners key driver. Moreover, a rapid expansion in the number of helped us engage with our counterparts to official finance entities has accompanied the fairly modest build relationships and locate the data we growth in official finance volumes and in the numbers of needed for the analysis. official finance providers. The result has meant that official -Social Protection TTL financial flows remain highly fragmented. In this context, ” IDA’s status as an efficient and non-fragmented platform47 provides significant value, but it requires IDA to consider how it partners with this growing range of development IDA uses a range of coordination mechanisms as part of actors. The review will provide further detail on IDA’s many the regular work through IDA windows and programs. For partnerships and examine the options for new strategies example, IDA often consults with United Nations (UN) mis- and/or policies in accordance with the outcomes and find- sions, development and humanitarian agencies in the de- ings of evolving WBG discussions. sign and monitoring of milestones for the FCV Envelope’s Performance and Resilience Allocation and Turn Around Allocation countries; relies on UNHCR Refugee Protection Adequacy Assessments to confirm countries’ eligibility for WHR; works closely with the World Food Programme (WFP) and the Food and Agriculture Organization (FAO) of the United Nations to combat rising food insecu- rity, partners with WHO/ United Nations International Children’s Emergency Fund (UNICEF) to implement IDA programs; and  relies on UN agencies and international Non-Governmental Organizations (NGOs) to implement specific projects in FCV Envelope Remaining Engaged in Conflict Allocation (RECA) countries. The Regional Window (RW) provides grants to many regional institu- tions, such as the Economic Community of West African States (ECOWAS), the African Union Commission, the Organization of Eastern Caribbean States Commission, and the Pacific Aviation Safety Office. 41 IDA19 DELIVERY TRENDS Chapter 3. IDA19 DELIVERY TRENDS “ IDA19 set records as new commitments reached $75 bil- lion in IDA countries, or $76.7 billion when considering Private Sector Window commitments delivered through Throughout the intense month working together IFC and the MIGA. IDA continued to provide one of the on the COVID-19 vaccine framework, fostering largest sources of unearmarked concessional finance for the world’s poorest countries during IDA19. IDA mobi- an environment to work as a high impact team lized its full architecture to support a global crisis re- was a key focus for me. Taking the time to sponse, sustain financing for longer-term global priorities, connect as a team before we jumped into the and continue to increase resources available to FCS coun- work was essential—even more so because we tries and Small States. About 48 percent of these re- were fully virtual. In our first meeting we co- sources ($36.1 billion) were committed in FY21, with the created the north star—the shared purpose— of remaining 52 percent ($38.9 billion) committed in FY22. the work we were embarking on together. Yes, As COVID-19 increased debt vulnerabilities among IDA we had this Board paper to deliver, , but to what countries, the share of grants in IDA commitments in- end? What could we contribute to in terms of creased considerably. The amount of grants provided by broader impact if we delivered well? What could the World Bank has been unmatched by any bilateral or this work contribute to in our client countries multilateral organization. From IDA’s inception through and globally? the conclusion of IDA19, grants as a share of cumulative -Health TTL ” commitments stand at 22 percent. First introduced in IDA14, IDA’s Grant Allocation Framework factors risks of 42 IDA19 DELIVERY TRENDS debt distress into determinations of eligibility for grant IDA19 also refined IDA’s existing architecture for topping financing. Rising risks of debt distress and increasing up and incentivizing investments in global priorities. fragility among IDA countries is increasing grants as a With their heavy weighting on country performance, IDA share of IDA commitments over time. In FY22, grants country allocations incentivize investments in institutional represented more than a third of total commitments. quality. Publicly consulted country strategies, supported IDA Articles originally contemplated that clients would by rigorous diagnostics, help countries prioritize their in- receive mainly concessional lending. The introduction of vestments while supporting the flexibility needed to shift grants has helped reduce the poorest clients’48 reliance when emergencies such as the COVID-19 pandemic arise. on credit, contributing to debt sustainability overall.49 IDA windows complemented the country allocations with supplemental finance for regional investments, crisis re- Figure 3.1. sponse, investments for refugees and host communities, Increasing share of grants in IDA total transformational projects, and attracting private sector commitments investments. During the cycle, 53 of 74 IDA countries 90 100% accessed financing from one or more concessional IDA 90% envelopes or windows. In addition, the Private Sector 80 Window supported regional, multi-country, and/or coun- 70 80% try-specific programs and projects that reached 35 IDA 70% Share of Grants, % 60 countries. (Figure 3.1.) The strong demand from coun- US$ billion 60% tries for resources from these envelopes and windows 50 50% suggests the resources were well-targeted to develop- 40 ment needs. Detailed eligibility requirements, however, 40% 34% 30 27% added some complexity when attempting to access the 30% funds to accommodate shifts in client demand, such as 20 20% 14% 13% when countries deal with unexpected emergencies. 10 10% 0 0% The cycle introduced new features into IDA’s window IDA16 IDA17 IDA18 IDA19 architecture. IDA19 introduced the FCV Envelope to tai- Grant Credit & Guarantee Share of Grants lor and enhance country allocations for countries facing acute fragility, conflict, and violence. IDA19 retained the IDA19 continued to increase commitments in FCS coun- five windows established in earlier cycles. Recognizing tries and Small States. Aided by the introduction of IDA’s the growing need to support early interventions to pre- FCV Envelope, commitments in FCS countries accounted vent crises from escalating, the CRW was expanded to for 41 percent of total IDA19 financing—an increase on support early response financing for slow-onset crises, the 30 percent in IDA18 and a continuation of a trend ob- alongside the last-resort financing for severe crises in- served over several cycles. Similarly, IDA commitments to troduced in earlier cycles. Roughly 82 percent of IDA Small States reached a historical record of $2.5 billion in commitments were delivered through country alloca- IDA19—an 11 percent increase compared with the $2.3 tions52 (including resources delivered through the FCV billion committed in IDA18. Envelope), while approximately 18 percent was delivered through IDA’s five windows ($14 billion, including the Flexibilities within IDA’s framework proved critical to PSW). This chapter outlines the operations of the FCV delivery. Reallocations typically concluded at the Mid- Envelope and IDA windows during the cycle. Appendix 3 Term Review were advanced to the end of FY2150 and complements the narrative with additional data on win- totaled about $7.4 billion.51 Reallocated resources pro- dow operations. vided essential financing for the emergency response to the COVID-19 pandemic. Under the Global COVID-19 Health MPA, the Bank provided a total of $5.1 billion in fi- nancing during IDA19 and a total of $6.7 billion since the beginning of the crisis to help countries respond to the pandemic. About 47 percent ($3.2 billion) of total IDA commitments under the MPA were disbursed between April 2020 and June 2022. 43 IDA19 DELIVERY TRENDS Figure 3.2. Most IDA countries accessed one or more IDA19 envelopes/windows 53 IDA countries that accessed one or more concessional Windows/FCV Envelope 72% 74 IDA19 Eligible Countries 47% 25% 23% 4% 2% 25 IDA countries 13 IDA countries 12 IDA countries 2 IDA countries 1 IDA country Accessed 1 Window Accessed 2 Windows Accessed 3 Windows Accessed 4 Windows Accessed all Windows or FCV Envelope or FCV Envelope or FCV Envelope or FCV Envelope & FCV Envelope 21 28% IDA countries that did not access concessional Windows or FCV Envelope 3 inactive countries, 10 small economy term borrowers, 7 blend term borrowers, & 1 grant received country 39, 53% 74 IDA countries not reached by PSW investments IDA19 Eligible 35, 47% Countries IDA countries among IDA19 eligible countries reached PSW & supported regional, multi-country & country-specific projects & programs 3.1. The FCV Envelope FCV Envelope processes have offered a robust platform for consultation and dialogue with other development IDA19 introduced the FCV Envelope, which consoli- partners on FCV topics. In all eligible countries, there dated, refined and expanded the financing toolkit for IDA have been extensive consultations with partners to iden- countries experiencing FCV challenges. Design of the tify FCV drivers and sources of resilience, and to prior- FCV Envelope built on the Post-conflict, Risk Mitigation, itize complementary and mutually reinforcing support. and Turn Around regimes employed in IDA18, as well as Country-level coordination varies depending on the the post-conflict regime phase-out applicable to South country context, but usually involves aligning diagnostics Sudan. Incorporating lessons from these initiatives, the and approaches to key policy challenges, and consulta- FCV Envelope introduced a formal eligibility process tion on key government milestones, as well as the mon- and a strong incentive and accountability structure to itoring of progress. Consultation and coordination have scale up IDA’s support for prevention and resilience, re- proven valuable on topics or milestones that are outside maining engaged during conflict, and helping countries IDA’s comparative advantage, notably on political, stabi- transition out of FCV.53 The FCV Envelope provided $5.4 lization, security, and justice matters or on topics where billion to top-up country allocations for 13 eligible coun- other development partners are also providing support. tries.54 These included: seven countries eligible for the For example, the UN is helping to monitor the overall po- Prevention and Resilience Allocation (PRA) receiving an litical and security situation and milestones related to po- additional $3.3 billion (Burkina Faso, Cameroon, Chad, litical developments or security in all countries where this DRC, Mali, Mozambique, and Niger); four countries eli- is relevant. And in DRC and Chad, milestones on justice gible for the Turn-Around Allocation (TAA) receiving an have been directly influenced by close collaboration with additional $1.8 billion (CAR, Somalia, Sudan, and The the European Union (EU) in order to support transitional Gambia); and two Remaining Engaged during Conflict justice and security sector reform. Allocation eligible countries (South Sudan and Yemen) receiving an additional $365 million.55 44 IDA19 DELIVERY TRENDS Fragility, Conflict, and Violence Envelope (FCV Envelope) - At a glance 13 Turn Around Allocation (TAA) FCV Envelope Recipient Countries $1.8 B Central African Republic Somalia Prevention & Resilience Allocation (PRA) Sudan $3.3 B The Gambia Burkina Faso Cameroon Chad $5.4 B FCV Envelope Remaining Engaged During Conflict Allocation (RECA) Democratic Republic of Congo top-up country $365 M Mali allocations Mozambique South Sudan Niger Yemen The FCV Envelope helped ensure a more structured pol- Box 3.1 Prevention and partnership in icy dialogue with government authorities on FCV. The Mozambique systematic process for establishing and maintaining eligi- During IDA19, Mozambique established eligibility for bility to access FCV Envelope financing allowed IDA to the Prevention and Resilience Allocation to support engage comprehensively, including on the governance the country’s “pivot to prevention” underpinned by and security dimensions of fragility, to elevate and further a top-up of $700 million to its country allocation. The focus country-level discussions on FCV dynamics, an- process of securing eligibility to the PRA galvanized chored around specific government milestones. A review a dialogue around the core FCV challenges—based of progress on these milestones indicates that nearly on the Risk and Resilience Analysis—and provided three quarters were achieved or made significant prog- a platform for the WBG to engage on these issues ress. Security and development-related milestones pro- with the Government, as well as the international gressed relatively well throughout the implementation community. The consultative process helped to build stages. For instance, Niger made significant progress on a coalition and agreement around the baseline narra- the adoption and implementation of a national security tive, opening the way for multilateral support (AfDB, policy document, a national internal security strategy and EU, UN, WBG) to the Government for the north, through the Recovery and Peacebuilding Assessment a counter-radicalization strategy, and all border and at- for Northern Mozambique, under the 2008 Joint risk municipalities now have peace committees (exceed- Declaration on Post-Crisis Assessments and Recovery ing the initial target of 50 percent). In Chad, following the Planning. Furthermore, the process involved a recal- unforeseen political transition, milestones around estab- ibration of the IDA portfolio and pipeline, including lishing the institutional architecture of the transition were the design of a regional integrated approach for the met. The Gambia completed the Truth, Reconciliation north of Mozambique, which consisted of comple- and Reparations Commission process, with a report sub- mentary operations in a sequenced manner across mitted to the government and publicly disclosed, and in the three provinces in northern Mozambique, in a bid Somalia a policy paper on the principles for resource-shar- to address the causes and impacts of conflict, and lay ing was issued to guide decentralization, while the flow the groundwork for recovery. of fiscal transfers to Somalia’s Federal Member States was sustained. 45 IDA19 DELIVERY TRENDS Despite achievements, progress on some FCV Envelope Implementation of the FCV Envelope has highlighted the milestones and policy dialogue was uneven. Four of the importance of annually reviewing milestones and consid- 11 countries benefiting from FCV Envelope allocations, ering the transition out of fragility. The annual reviews Burkina Faso, Chad, Mali, and Sudan, experienced polit- have underscored the value of ensuring precise content ical shocks in the forms of coup d’états or unforeseen and scope of milestones, identifying outcome- rather political transitions that paused operations and impacted than process-oriented indicators, and retaining a sharp policy dialogue. Such delays and pauses in dialogue af- focus on the objectives of the FCV Envelope. Given the fected progress on some milestones, while others experi- complexity of country circumstances, the proactive use enced delays in information gathering or challenges ad- of annual reviews to document shifts in the local context, vancing reforms. Altogether, less than one-third of report on progress and challenges, and carefully con- agreed milestones made only some progress, and a small sider the Bank’s approach are important for informing proportion—less than 10 percent—did not progress. The continued dialogue and adjustment of milestones, as delays are indicative of the longer-term horizon of FCV and when needed. A proactive approach will also help Envelope milestones that are more structural in nature ensure that the overall objectives of the FCV Envelope and the complexities of addressing the root causes of are safeguarded, and the Bank’s policy dialogue and sup- FCV, particularly in fluid security contexts, as well as the port remains relevant and appropriate. Considering the changing political landscape in a number of countries. dynamic nature of FCV contexts, careful planning around Sustained attention, including through annual reviews, funding levels will be critical as countries successfully ensures focus is maintained on these harder to achieve achieve conflict prevention and turn-around, or other- milestones. Annual reviews of PRA and TAA milestones wise become ineligible against the criteria for accessing are required to maintain eligibility. Though sometimes the FCV Envelope top-ups. delayed, as in the cases of the four countries that experi- enced unforeseen political transitions, the annual reviews 3.2. IDA19 Window are an essential tool for sustaining focused attention on the demanding FCV Envelope milestones. Implementation 3.2.1. Crisis Response Window “ In the beginning it was a bit difficult for our The Crisis Response Window provided $2.1 billion to support crisis responses in 20 countries,56 including clients in FCV countries because of lack of through the newly introduced Early Response Financing. infrastructure. I remember in Niger they did Altogether, 20 countries benefited from CRW allocations meetings from a garage at some point because during IDA19. Most recipients were IDA-only countries, 15 were FCS countries, and four were Small States.57 Fifty- that was the only place where they could four percent of CRW commitments were grants. Over 60 connect from. The Bank office was closed, percent of CRW resources were provided to countries in so we could not invite them to the Bank for Africa. Close to one-quarter of CRW resources was chan- discussions. But they adjusted very quickly. neled through agriculture and food projects, followed Clients started to use phones and send us by the health, nutrition, and population sectors. Macro, pictures. The aide memoire changed and trade and investment projects and water projects also re- ceived significant shares of CRW financing. A significant included more annexes with pictures and maps. majority (87 percent) of CRW resources was used for IPF, -Social Development TTL ” with just 13 percent financing DPOs. CRW commitments have been almost evenly distributed between new and additional finance operations. Partnerships play a vital role in allocation of CRW resources, as the World Bank aims to complement other support, when available.58 46 IDA19 DELIVERY TRENDS Crisis Response Window (CRW) - At a glance By region East Asia & Pacific (EAP) Europe & Central Asia (ECA) 11%, $226 M 13%, $281 M Latin America & the Caribbean (LAC) Africa (AFR) 59%, $1.2 B $2.1 B CRW 10%, $218 M Middle East & North Africa (MNA) Commitments 6%, $130 M 20 57 South Asia (SAR) CRW Recipient Countries Operations 1%, $13 M By sector Top 5 recipients of CRW Madagascar Agriculture & food $460 M, 22% Moldova Health, nutrition & population $399 M, 19% Haiti South $300 M Sudan Niger Macroeconomics, trade & investment $275 M, 13% $226 M $200 M $155 M $150 M Water $270 M, 13% Urban, resilience & land $221 M, 10% Social protection & jobs $150 M, 7% Early Response Special Financing Allocation Transport $115 M, 5% Food security (Moldova, Mongolia, 32% By type Ukraine) Energy & extractives $60 M, 3% 16% of crisis & Social sustainability & inclusion $50 M, 2% Last Resort allocation Exceptional Financing COVID-19 Digital development $41 M, 2% 46% Response Education $40 M, 2% 6% Cyclone, floods, Earthquake Economic Volcanic eruptions Finance, competitiveness & innovation $31 M, 1% hurricanes 30% 7% crisis 7% & tsunami 2% Thirty-four percent of CRW allocations supported early Other CRW resources were used for last-resort financing responses to food insecurity in 15 countries, confirming (49 percent) to respond to seven natural disasters, includ- the strong uptake of Early Response Financing. IDA19 ing regional crises such as Cyclone Ana in Southeastern enhanced the CRW—previously dedicated solely to Africa, and more localized crises such as the earthquake last-resort financing for severe crises—by introducing an in Haiti and the volcanic eruption and tsunami in Tonga. ERF framework. ERF financing supports early responses The CRW also provided last-resort financing to help three to reduce the impact of slower onset crises arising from countries61 grappling with exceptionally severe economic food insecurity and certain disease outbreaks. A sum fallout from the COVID-19 pandemic. of $500 million from the CRW’s initial allocation of $2.5 billion was reserved for these early responses, and the The CRW provided exceptional support to help recent innovation was taken up rapidly. All ERF resources were graduates Moldova and Mongolia and financing for the used to respond to food insecurity and all but two ERF pandemic response. Moldova and Mongolia had gradu- allocations – one to Yemen and one to Haiti – went to ated from IDA at the end of IDA18 but were uniquely African countries.59 No country used CRW resources for vulnerable as recent graduates during the pandemic. early disease responses in IDA19, although there were Mongolia’s GDP growth was projected to decline by 7.1 two qualifying outbreaks.60 This may have been because percentage points, and Moldova’s by 8.1 percentage health projects were sufficiently resourced, due to the points in 2020.62 Moldova was simultaneously grappling COVID-19 pandemic to adapt to smaller emerging crises. with the effects of drought. In April and June 2020, IDA 47 IDA19 DELIVERY TRENDS Deputies reviewed and endorsed Management propos- Box 3.2 Early intervention in CAR als to extend exceptional CRW access to the two coun- reaches more than 300,000 farmers tries for FY21 and FY22. In addition, IDA Deputies en- In the Central African Republic (CAR), CRW ERF funds dorsed a further allocation of $148 million in net CRW are financing the Emergency Food Crisis Response resources to the Global Fast-Track COVID-19 Facility, Project, which aims to mitigate the impact of the complementing the $1 billion that had been allocated to concurrent economic shocks induced by the COVID- the facility through the CRW during IDA18. In April 2022, 19 pandemic, high inflation, excess rainfall/flooding IDA Deputies endorsed an additional $100 million from and political instability on CAR’s food and nutrition the CRW for Moldova as the country responded to mas- security. The design of the project and interventions sive refugee inflows following Russia’s invasion of Ukraine. were informed by a series of upstream analyses and are based on the following broad principles: (i) as poverty and food insecurity increase rapidly in both 3.2.2. Regional Window rural and urban areas, it is important to provide emer- gency production support to eligible beneficiaries The Regional Window contributed $5.9 billion to 44 op- quickly, while also addressing the underlying vulner- erations in 41 IDA countries. Collectively the operations ability to mitigate future shocks on food security; were valued at a total of $9.4 billion. In addition to the (ii) flexibility in geographical targeting is required to $5.9 billion contributed by the RW, the balance of $3.5 maintain relevance and appropriateness of the proj- billion was drawn mostly from country allocations. RW ect in addressing the ever-changing food insecurity commitments increased by 9 percent in IDA19 relative to hotspots in the country; and (iii) there is a need to IDA18. Forty-four percent of IDA19 RW financing ($2.6 act promptly with scaled-up resources to avoid billion) went to IDA FCS countries, of which $1.2 billion further deterioration of food insecurity and allow for was invested in the Sahel alone and about $0.7 billion in a sustainable recovery from the multiple crises facing the country. In the first year of the three-year project, the Lake Chad region. While the bulk of RW resources 329,000 farmers were reached with agricultural assets were invested in Eastern and Southern Africa (AFE) and or services and 28,800 metric tons of food crops had Western and Central Africa (AFW), the window contin- been produced (representing a 125 percent increase ued to enable regional integration in other regions, in crop production). Moreover, the project has including in support of Small States. For instance, the organized and trained 8,560 vulnerable households Unleashing the Blue Economy of the Caribbean project into groups and equipped them with post-harvest approved at the end of the cycle will help strengthen handling equipment. The improved crop yields and the enabling environment for economic recovery and reduced post-harvest losses, as a result of the proj- resilience of coastal areas in Grenada, St. Lucia and St. ect’s efforts, enabled the participating farmers to Vincent and the Grenadines, while in the East Asia and increase their food availability for consumption and Pacific (EAP) region, a series of resilient transportation generate income through sales in nearby markets. projects contributed to the development of regional in- tegration infrastructure in Samoa, Solomon Islands, and Tonga. Transport projects received the highest share of IDA19 RW resources ($2 billion or 35 percent), including through investments in key economic corridors between: Cameroon and Chad; Niger, Burkina Faso, and Togo; and in Lao People’s Democratic Republic (Lao PDR), connect- ing markets between Thailand and Vietnam. Agriculture was another key sector, with $1.2 billion of investments (21 percent), including food systems resilience programs in both West and East Africa, and the second stage of the Regional Sahel Pastoralism Support Project. The RW continued to pioneer innovative financing mechanisms to incentivize regional integration in IDA countries, in- cluding direct grant financing to regional organizations totaling $280 million in 15 regional entities. The RW also financed its first ever regional Program-for-Results (PforR) for the Eastern Africa Regional Statistics PforR. 48 IDA19 DELIVERY TRENDS Regional Window (RW) - At a glance By region South Asia (SAR) 13%, $739 M 41 45 RW Recipient Countries Operations Europe & Central Asia (ECA) 4%, $224 M Middle East & North Africa (MNA) Western & Central Africa (AFW) 38%, $2.3 B $5.9 B RW 2%, $128 M East Asia & Pacific (EAP) Eastern & Southern Africa (AFE) Commitments 2%, $127 M 40%, $2.4 B Latin America & the Caribbean (LAC) 1%, $57 M By sector Top 5 recipients of RW Transport $2,04 B 35% Kenya Agriculture & food $1,24 B 21% Ethiopia Finance, competitiveness & innovation $655 M, 11% $763 M $703 M Social sustainability & inclusion $596 M, 10% Bangladesh Energy & extractives $517 M, 9% Burkina Faso Water $260 M, 4% $435 M Niger $393 M Environment $241 M, 4% Poverty & equity $233 M, 4% $277 M Education $66 M, 1% Social protection & jobs $50 M, 1% The share of the RW portfolio supporting regional or Figure 3.3. global public goods has grown significantly. RW financ- Share of regional IDA commitment for RW ing can help countries collaborate to protect or develop projects with a Global Public Goods focus, shared natural resources, environmental commons, and from FY16 to FY22 address public health concerns with cross-border im- 40% pacts. The funds can also be used to address regional and global issues such as climate change and communi- cable diseases. By using concessionality as an incentive, 30% the RW has been a useful tool to support regional and 33% 30% Percentage global public goods while maintaining the country-driven model. Over time, the share of RW-financed commit- 20% ments directed to financing global public goods has 26% 27% 28% 27% grown, reaching 33 percent in FY21, and 30 percent in 24% FY22. (Figure 3.3) 10% 0% FY16 FY17 FY18 FY19 FY20 FY21 FY22 IDA19 Source: World Bank Staff Calculations 49 IDA19 DELIVERY TRENDS Innovations in IDA19 expanded the range of recipients and instruments that the RW can finance. Building on the introduction in IDA18 of RW grant financing for re- gional organizations, starting in IDA19 the RW allowed creditworthy regional organizations to access IDA credits. Uptake was limited during this first cycle of implemen- tation, with only two institutions accessing IDA credits for infrastructure development ($15 million) and financial inclusion ($25 million). The RW continued to incentivize regional integration through direct grant financing to re- gional organizations totaling $280 million in 15 regional entities, mostly in Sub-Saharan Africa. A regional DPF Box 3.3 World Bank/UNHCR prepared in West Africa (the West Africa Regional Energy strengthened partnership for Trade Program with a value of $300 million IDA of which addressing forced displacement $150 million was financed by the RW) prompted IDA The UNCHR/World Bank partnership provides Deputies to endorse a revision, subsequently approved complementary tools and approaches to support by the WB Board, to the RW’s policy framework. The host countries and enhance refugee self-reliance as revision made DPFs eligible for financing under the RW part of ongoing efforts to operationalize the United starting in IDA19. The West Africa example remains the Nations’ Global Compact on Refugees (GCR). The only DPF to access RW financing to date. Using a policy partnership cuts across countries and themes. For waiver, the RW financed its first regional PforR operation example, in Uganda IDA and UNHCR partner to for the Eastern Africa Regional Statistics PforR during support the Government’s progressive “whole of society approach” to transition from humanitarian to IDA19. The approval of the operation also spurred a government-run education, health and water systems. change in IDA policy to make PforR eligible for RW fi- In Kenya, the World Bank and UNHCR surveyed the nancing in IDA20, thereby aligning the RW with all other socio-economic conditions in Kalobeyei, a settlement IDA windows in its instrument-neutrality. established to accommodate a growing population of refugees from South Sudan, to inform policies 3.2.3. Window for Host Communities and programs advancing opportunities for girls and and Refugees women, and promoting agriculture to prevent food insecurity. In addition, the World Bank/UNHCR Joint Ten countries implemented medium- to long-term de- Data Center on Forced Displacement, established velopment solutions for refugees and host communities in October 2019, is working to improve the availabil- with support from the Window for Host Communities and ity, quality, and access to socio-economic data and Refugees during IDA19. Collectively, the WHR financed evidence on those affected by forced displacement. 25 operations in these countries for a total commitment amount of $1.27 billion during the cycle.63 The operations supported a range of sectors and activities, including for both host communities and refugees. Overall, WHR urban safety nets, infrastructure, education, skills up- policy and operational engagement has helped deepen grading, energy access, municipal transfers, and health partnerships, including by fostering closer links with de- systems strengthening, among others. Support for policy velopment agencies and local civil society actors with reforms is integral to WHR engagement. The Refugee deep contextual knowledge, and by pursuing high-level Policy Review Framework (RPRF) was completed and pub- agreements with governments and donors (Box 3.3). licly disclosed in 2021 as a tool for systematic analysis of refugee policy and institutional environments in countries WHR implementation has highlighted the importance of eligible for the WHR financing. Jointly prepared by the building host government capacity to address specific UNHCR and the World Bank, the RPRF identifies policy vulnerabilities of refugees and their hosts, while aligning reform opportunities and provides a common platform to financial support with the host government’s develop- align policy dialogue across development actors. These ment priorities and policies. The forced displacement assessments provide a better understanding of how agenda at the World Bank has grown considerably, due WHR financing can incentivize and contribute to policy in large part to the IDA18 Refugee Sub-Window (RSW) progress and implementation of sustainable solutions and IDA19 WHR, which have provided development 50 IDA19 DELIVERY TRENDS Window for Host Communities and Refugees (WHR) - At a glance By region Eastern & Southern Africa (AFE) Western & Central Africa (AFW) 82%, $1,048 M $1.3 B WHR 15%, $188 M Middle East & North Africa (MNA) 10 25 Commitments 3%, $35 M WHR Recipient Countries Operations By sector Top 5 recipients of WHR Uganda Social protection & jobs $298 M, 23% $244 M, 19% $500 M Energy & extractives Education $185 M, 15% Social sustainability & inclusion $154 M, 12% Ethiopia Transport $109 M, 9% Democratic Health, nutrition & population $82 M, 6% Republic of Digital development $54 M, 4% Congo Chad South $200 M Finance, competitiveness & innovation $50 M, 4% Sudan $135 M $128 M Governance $50 M, 4% $95 M Urban, resilience & land $45 M, 4% Note: A total of 17 countries were potentially eligible to access WHR funds in IDA19, of which 10 countries pursued and received WHR financing. “ financing on concessional terms for the medium- to long-term development needs of refugees and host I was leading a development response to communities, complementing humanitarian assistance. displacement impacts project in Uganda with The WHR’s strong focus on supporting host countries’ strategies and policy reforms has provided opportunities money from the WHR. This is a community for alignment and integrating refugees in national plan- driven development project, and there was ning and broader development responses.64 Moreover, a health center that we upgraded. We live- by strengthening government capacity to respond to in- streamed the field visit, and they took us flows of refugees, WHR support has contributed to better through a video tour of the facility and members medium- to longer-term management of forced displace- of the Health Center. We had an interview live – ment situations by ensuring a government-led response that avoids parallel systems and aid dependency. I was sitting in Washington, D.C. the team was sitting in Kampala and Nairobi. We were able WHR policy and operational engagements saw limited to directly interview the doctor in charge, some progress in some contexts. Sustained WB staffing sup- of the nursing staff, even some patients. That port on the ground in key country offices is vital for main- was easily the best of all the different types of taining political will and advancing policy dialogue and approaches that we tried during the lockdown. reforms, though it does not guarantee that policy dia- -Social Development TTL logue will advance. The eligibility process for Sudan was ” paused due to the ousting of the civilian government, and in South Asia, Bangladesh and Pakistan continued to implement operations financed under IDA18’s Regional Sub-Window for Hosting Communities and Refugees but 51 IDA19 DELIVERY TRENDS did not access the WHR in IDA19. Governments that fo- cus exclusively on voluntary repatriation of refugees may Box 3.4 Benin Electricity Access regard policies that support socio-economic inclusion as Scale-up (BEAS) project: To increase contrary to their approach. Moreover, some hosting gov- access to electricity services for ernments are reluctant to borrow resources to support households, enterprises, and public populations that are regarded as the responsibility of facilities the international community. In situations where govern- Financed entirely with SUW resources, the $200 ments are reluctant to accept large inflows of refugees, million BEAS project is a cornerstone of Benin’s a preparedness response, even with WHR support, has National Electrification Strategy (NES), which includes been difficult.65 The RPRF, developed with UNHCR, is ambitious objectives of reaching universal access to electricity services by 2030. The operation will: (i) helping to bring attention to policy dialogue that works connect 150,000 households to the national grid, toward inclusive displacement-related policies through a thus directly improving the living standards of at least coherent, programmatic approach. 780,000 people; (ii) provide new or improved electric- ity services to about 1,000 MSMEs, thereby creating 3.2.4. Scale-up Window jobs and boosting business; and (iii) provide electricity services to about 500 public facilities such as health The Scale-Up Window (SUW) supported 21 operations, centers. The wider population living in project target delivering $3.05 billion in commitments over the two- areas will also benefit from improved public lighting, year cycle. Introduced at the IDA17 MTR to complement with the installation of about 20,000 LED lamps. The country allocations by providing non-concessional fi- operation will significantly reduce the use of kerosene nancing to eligible IDA countries, the SUW focuses on and alternative fuels in Benin, and facilitate the imple- financing operations with potentially high economic mentation of the country’s Nationally Determined Contributions, which recognize the role of increasing returns and strong development impact. In IDA19, SUW energy access as part of specific measures to reduce continued to support long-term operations in areas such emissions by 21.4 percent by 2030. The project as access to energy, agriculture, finance and competi- design has a focus on closing gender gaps by bene- tiveness, transport, and water and sanitation services66 at fiting households and enterprises headed by women. a time when countries needed significant resource vol- umes to address the immediate health, economic, and The BEAS project was conceived in early 2020, just before the onset of the COVID-19 pandemic and was social crises precipitated by the COVID-19 pandemic. Board-approved in June 2021. The potentially high economic returns and strong development impact Financing was heavily concentrated in nine countries, with of the operation aligned with SUW objectives. The five accounting for 80 percent of SUW resources.67 By availability of an additional $200 million helped Benin comparison, in IDA18, the SUW supported 34 operations sustain longer-term energy sector goals even as it in 17 countries. For the most part, heavy concentration of directed significant resources to address the imme- SUW resources in a handful of countries can be attributed diate health, economic, and social crises and found to strong client ownership and capacity to prepare proj- that private sector and other development partners ects under extremely difficult circumstances, clients’ resources for the operation were lower than origi- pre-existing familiarity with the SUW and debt absorp- nally expected. The SUW’s non-concessional financ- tion capacity to borrow on non-concessional terms, and ing terms were competitive compared relative to close collaboration with Bank teams through continued commercial terms available to Benin. field presence or, in some cases, technology. More than two-thirds of IDA19 SUW financing went to 17 IPF opera- tions, including a $200 million project in Benin to increase access to electricity (Box 3.4) and a $120 million project in Bangladesh to support climate-smart agriculture and water management. In addition to investment project fi- nancing, an ambitious $500 million DPO in Uzbekistan re- ceived $85 million from the SUW to support reforms that will increase efficiency, sustainability, and transparency of resource allocation in the economy, while enhancing economic inclusion and social resilience. In Senegal, a 52 IDA19 DELIVERY TRENDS Scale-Up Window (SUW) - At a glance By region Western & Central Africa (AFW) South Asia (SAR) 59%, $1.8 B 20%, $620 M $3.05 BSUW Eastern & Southern Africa (AFE) 16%, $490 M 9 21 Commitments SUW Recipient Countries Operations Europe and Central Asia (ECA) 4%, $135 M By sector Top 5 recipients of SUW Energy & extractives $298 M, 30% Bangladesh Agriculture & food $475 M, 16% Benin Senegal Water $400 M, 13% $620 M $620 M Finance, competitiveness & innovation $375 M, 12% $580 M Transport $220 M, 7% Rwanda Cote Education $170 M, 6% d’Ivoire $350 M Urban, resilience & land $155 M, 5% $300 M Governance $140 M, 5% Digital development $100 M, 3% Macroeconomics, trade & investment $85 M, 3% $125 million PforR operation focused on access to jobs, million underserved people in rural areas access water by economic transformation, and access to energy. 2027. Building on that success, Benin was able to advance a major investment in electricity access even during the For a subset of IDA countries with relatively lower risk pandemic by using SUW funds (Box 3.4). The availability of debt distress and capacity to absorb additional re- of additional resources from the SUW helped these and sources, SUW financing offers a resource for advancing other IDA borrowers free up more concessional IDA re- long-term development priorities. Clients using SUW sources to meet short- to medium-term financing needs, resources have tended to concentrate SUW financing without losing sight of their longer-term development on investments to expand access to energy, agriculture, goals, including the SDGs, while continuing to maintain finance and competitiveness, transport, and water and debt sustainability. sanitation services, at times in combination with private sector resources. Rwanda, for instance, is a fast-growing 3.2.5. Private Sector Window IDA country with significant absorption capacity. It usu- ally requires more resources than are available through its Private sector innovation and private capital is needed PBA. It programs its PBA early and uses SUW resources to to address today’s challenges. Now more than ever, pri- prepare longer-term, impactful projects. During IDA19, vate sector development is a critical prerequisite for sus- Rwanda used SUW financing primarily on major inter- tainable economic growth. The private sector provides ventions that leveraged or engaged the private sector. capital, innovation, employment and tax revenue for Similarly, the Government of Benin, which scores highly public goods and services. Investment of the magnitude in WBG Country Policy and Institutional Assessments, has needed to confront the world’s development challenges leveraged SUW financing to invest in high-impact proj- necessitates a central role for the private sector. Thus, ects. Benin successfully used SUW resources to finance there is a need to significantly scale up private capital a universal access to water program that incentivized pri- flows and private sector development, especially in vul- vate sector participation and is expected to help over 3 nerable IDA countries. 53 IDA19 DELIVERY TRENDS Private Sector Window (PSW) - At a glance Mobilized an additional Financial institutions** 60% $8.2 B $1.7 B IDA Commitment in investments from IFC, MIGA and third parties Infrastructure (including energy & telecom) 20% to IDA-IFC- By sector Manufacturing, MIGA PSW* agribusiness, services 61 17% Board approved PSW projects & programmatic platforms approved in Private equity funds 35 of the 73 PSW eligible countries & venture capital 4% By facility Blended finance facility $867 M $910 M Risk mitigation facility $33 M $239 M Local currency facility $566 M IDA 18 $246 M MIGA guarantee facility IDA 19 $177 M *Full utilization of allocation by IFC and MIGA **Sectors reached through support to Financial Institutions, include agriculture/forestry, consumer products, retail/services, among others. In IDA19, IDA’s $1.7 billion commitment to the IDA-IFC- will provide an opportunity to provide more detailed anal- MIGA Private Sector Window mobilized an additional $8.2 ysis of what the PSW has achieved since its inception in billion in investments from IFC, MIGA and third parties. FY18, including illustrating successes, lessons learned and The PSW was established on a pilot basis as a part of the the role of de-risking capital in supporting the develop- WBG’s strategy to mobilize private capital in the most dif- ment of the private sector in IDA countries. ficult IDA markets and an important part of the WBG’s im- plementation of the Cascade and the Maximizing Finance After a ramp-up following its introduction in IDA18, the for Development approach – recognizing that mobilizing PSW implementation accelerated in IDA19. In IDA18, the commercial finance is critical within the context of the PSW used 56 percent of originally allocated IDA funds, or scale of demand for development finance and scarce pub- $1.4 billion of the $2.5 billion. The IDA18 period helped lic resources. The experience to date, including through build the pipeline and familiarize teams with the new the support of investment vehicles and the deployment of concessional blended finance products available under de-risking tools to promote impactful private investments, the PSW. In IDA19, the PSW deployed a significantly is informing the ongoing WBG’s work to further promote larger volume of funds—$1.7 billion, the entire amount private capital mobilization (PCM) and private capital en- allocated68—in two-thirds of the time (Figure 3. 4.) The abled (PCE) under the Evolution Roadmap. The PSW sup- PSW mobilized $3.3  billion in investments and guaran- ports the WBG’s multipronged approach to PCE and PCM tees from IFC and MIGA, and an additional $4.9 billion through its supported project and programs, including its from third parties, including other development finance support for ground-breaking transactions in new markets institutions, lenders, and equity investors, representing a which can be replicated to expand the pipeline of invest- five-times leverage of IDA funds. able projects, deepening local capital markets and utilizing de-risking and guarantee instruments to facilitate PCM on a project-by-project basis. As some PSW-supported proj- ects are at or near maturity, the IDA20 Mid-Term Review 54 IDA19 DELIVERY TRENDS Figure 3.4. Board Approvals Over Time: IDA18 vs IDA19 1800 1600 1400 1200 US$ million 1000 800 600 400 200 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Months IDA18 IDA19 Box 3.5 Programs Established During IDA19 - Using Platforms to Scale Impact Given the relatively small investment size of individual PSW-supported projects, IFC uses investment platforms, or programmatic approaches, to deploy resources efficiently and at larger scale. Each IDA PSW project is approved by the Board but, under programmatic platforms, the Board authorizes a program and delegates approval of individual trans- actions to IDA Management within defined parameters. Notable investment platforms supported by IDA PSW during the IDA19 cycle include: • IFC launched the Base-of-the-Pyramid (BoP) Facility. BoP is a $600 million financing facility to support financial service providers such as microfinance insti- tutions, non-bank financial institutions, and MSME- focused banks serving MSMEs, informal enterprises, and low-income households on-lending to MSMEs impacted by the COVID-19 pandemic. Thanks to the support of a pooled first loss guarantee (up to $130 million) and cross-currency swaps (up to $250 million) through PSW, up to half of the facility will target IDA PSW-eligible countries. One project under BoP supported Equity Banque Commerciale du Congo in the Democratic Republic of the Congo. IFC’s loan proceeds were used to help small businesses access local currency financing despite the Congolese financial system being heavily dollarized with limited availability of local currency lending. IDA PSW supported the loan with both cross-currency swaps with IFC to enable it to offer a local currency loan at a viable rate for on-lending to MSMEs and a pooled first loss guarantee to de-risk IFC’s participation. Through an important local financial institution, IFC and PSW are able to support access to finance to financially underserved individuals and MSMEs in remote areas of the country and discourage retrenchment in the context of the recovery from the COVID-19 pandemic. • The African Trade and Supply Chain Finance Program (ATRI) is a $1 billion platform to address the trade finance gap in Africa by financing financial institutions or directly to importers and exporters. ATRI recognized that devel- oping stronger delivery of trade financing to banks and firms is necessary to support a rebound from the COVID-19 pandemic and the recovery of SMEs. It is supported by up to $225 million from IDA19 PSW. 55 IDA19 DELIVERY TRENDS IFC’s programmatic platforms, particularly those begun at the end of IDA18 to support the COVID-19 response, Box 3.6 Support for the Financial Sector contributed to the increased use of the PSW in IDA19. PSW support to the financial sector has expanded COVID-19-related platforms utilized the PSW’s Blended the reach to various subsectors in low-income IDA Finance Facility and Local Currency Facility,69 and primar- and FCS countries. For example, through IDA PSW ily targeted the financial sector to support access to fi- support, the IFC Global Trade Finance Program (GTFP) nearly tripled its reach to IDA PSW countries nance for MSMEs during the crisis. Use of the PSW’s during COVID-19 (from FY19 to FY22). In addition, MIGA Guarantee and Risk Management Facilities de- under IFC’s Small Loan Guarantee Program (SLGP), clined during the cycle relative to IDA18. These facilities IFC and PSW have supported the financial sector in are used primarily to support long-term infrastructure in- extending over 5,000 financing facilities to SMEs for vestments. Structuring and executing this type of invest- a cumulative loan amount of more than $400 million ment is challenging in low-income IDA and FCS countries equivalent. In terms of reach, SLGP has focused on in general, and demand for the investments was further supporting financing to smaller SMEs, evidenced by affected during the cycle by deteriorating macroeco- the average SME loan size under SLGP of approxi- nomic conditions and drops in rates of foreign direct mately US$74,000 equivalent. investment. The financial sector accounted for more than half of the IDA19 PSW portfolio. Support to the financial sector flowed through to a range of economically productive sectors and end-consumer use in agriculture/forestry, consumer products and retail/services sectors, among others. The infrastructure sector, including energy and telecoms, accounted for around 20 percent of the IDA19 PSW portfolio. In connection with IDA Special Theme of Climate Change, nearly $100 million of the IDA19 allo- cation was allocated to renewable energy projects, to support projects worth an aggregate of $580 million. For example, in light of high country and project risks, the IDA PSW MIGA Guarantee Facility supported MIGA in issuing guarantees of up to $25.6 million to Escotel, covering its Figure 3.5. investments in solar generation to power existing and fu- IDA PSW Allocations, by FCS Status ture cell phone towers in Sierra Leone and Liberia. Several large projects drove the PSW’s mobilization of fi- nance from other investors. These included, for instance, MIGA’s Konexa integrated power distribution. IDA PSW’s 39% 30% support enabled MIGA guarantees for Konexa’s solar power generation and distribution operations in Nigeria, with up to $85.5 million in guaranteed investments. 31% FCS Non-FCS Regional Projects and Platforms 56 IDA19 DELIVERY TRENDS Box 3.7 PSW supported investments in FCS countries: Hayel Saeed Anam Group Foods (HSA Foods) With IDA PSW support, IFC and FMO (the Dutch entrepreneurial development bank) provided $75 million in debt financing for HSA Foods operations in Yemen. This was IFC’s first agribusiness investment in Yemen in over a decade and FMO’s first investment in the country. The proceeds were used by HSA Foods— one of the largest private employers in Yemen—to maintain its food staple business in the midst of the country’s ongoing humanitarian crisis, armed conflict, and the impact of the COVID-19 pandemic on global trade in food commodities. IDA PSW supported the transaction by providing a first loss guarantee equiv- In IDA19, the PSW continued to focus on FCS countries. alent to 50 percent of the financing, allowing IFC The private sector in FCS countries encounters specific and FMO to participate in the transaction. Following challenges, such as insecurity and deficiencies in state on from this initial financing, IFC arranged a further capacity and legitimacy. These deficiencies often lead to financing package of $60 million for HSA Foods with high rates of informality in the economy, which can un- lending on its own account and mobilized from other DFIs, again with IDA PSW support. dermine productivity and investment. Additionally, there is often a lack of resilient counterparts and a political en- vironment that inhibits necessary economic reforms. Given this challenging environment, it is important to conduct extensive research and analysis, build client ca- pacity, and develop projects to identify viable private sector investments. Projects in countries particularly af- fected by political instability and insecurity, such as Afghanistan, Ethiopia, Myanmar and Sudan, faced chal- lenges and disruptions. Due to the operational and pol- icy challenges of operating in these political and security environments, several IDA PSW projects at various stages of the investment lifecycle were suspended, withdrawn or divested, often after significant efforts by the WBG and its clients had already been expended toward realiz- ing these projects. This highlights the need to further develop mechanisms to support the private sector in these countries, including identifying opportunities to work with partners who are appropriately equipped for on-the-ground interventions. Despite these challenges of operating in an FCS context, the PSW has been able to support impactful projects in the most challenging envi- ronments, as demonstrated in Yemen (see Box 3.7). 57 LESSONS LEARNED AND LOOKING FORWARD Chapter 4. LESSONS LEARNED AND LOOKING FORWARD 4.1. Lessons from an Extraordinary IDA19 Cycle “ In one project I worked on in a West African The IDA19 delivery experience was exceptional. IDA19 country, three of the key counterparts passed introduced important innovations such as the SDFP, away from COVID, either directly or as a co- increased and more tailored support through the FCV morbidity. It was very sad on a human level Envelope, and a sharper focus on early response and because I had worked with these people for crisis preparedness. These enhancements provided a six years and knew them well. A big loss. Of solid framework for IDA19 to address crucial challenges course, it also created a lack of leadership for in IDA countries. However, the outbreak of multiple crises during the cycle drove the implementation in entirely new the project. -Social Development TTL ” directions. In this context of unplanned change, what can be learned about IDA’s capacity to adapt? What were the successes and where was the room to maneuver more constrained? And does the experience present lessons compounding crises. For instance, the volume and quality for IDA20 and beyond? of the portfolio provides a clear indication that IDA man- aged to serve clients despite operational challenges, in- While it is premature to draw longer-term conclusions, cluding temporary restrictions on staff mobility. The rapid early lessons demonstrate the importance of preserving introduction of an MPA and adjustments to the IDA19 IDA’s substantial capacity for a flexible response. Building package in April 2021 underscored the importance of pre- on delivery data in this report, on IDA’s RMS, and on serving IDA’s capacity to change course in the face of un- testimonials from IDA task teams, it is possible to draw expected crises. This involved convening clients, donors, some conclusions about what worked well in the face of and other international organizations in joint response. 58 LESSONS LEARNED AND LOOKING FORWARD “ In FCV situations, our clients often don’t have IDA was a major external financier for countries during a period of urgent need. IDA provided significant net posi- tive flows at concessional terms, at a time when countries’ stable and strong internet and face frequent debt sustainability was deteriorating. From April 2020 to electricity cuts, but some used their cell May 2021 – the most intense phase of support follow- phones. We also shifted project allocations and ing the outbreak of the pandemic and the ensuing eco- allowed clients to purchase items that we had nomic contraction - IDA was the largest external financier not foreseen originally, like stronger and more to countries eligible for the Debt Service Suspension Initiative, providing 37 percent of the external support stable internet connection or more generators (Figure 4.1). Both FY21 and FY22 set records for IDA for their offices, to make sure that they had commitments, reaching $75 billion, or $76.7 billion when proper logistics to do their work. considering PSW commitments delivered through IFC -Urban and Disaster Risk Management TTL and MIGA This record financing was enabled by the ex- ” The Retrospective demonstrates that IDA19 offered re- traordinary responsiveness of IDA donors and stakehold- ers in supporting an early replenishment. The shortening of the IDA19 cycle to two years effectively raised $16 bil- cord commitments, sustained disbursements, and deliv- lion for IDA countries shortly after the devastating impact ered important results, but this was against a backdrop of the pandemic became evident. It was bolstered by the of significant development reversals in IDA countries. innovations of the hybrid financing model introduced in Progress in eradicating extreme poverty and achieving IDA18, which leveraged market borrowing to bolster IDA the Sustainable Development Goals is off track. The finances and enable significant frontloading of resources development trajectory has slowed or reversed in some during the compressed cycle. areas over the past few years. These reversals are largely driven by global development challenges, including the Convening role impact of climate change, the COVID-19 pandemic, and IDA19 was a critical convening platform to address unex- growing fragility and conflict. The IDA19 cycle powerfully pected and urgent global challenges. IDA embodies a underscored that IDA’s core strengths lie in its ability to strong partnership, bringing together IDA donors and provide long-term responses in a manner that supports borrowers in its framing, and engaging public and private country needs, while also adapting innovative solutions partners in its delivery. Collaboration with other develop- to address new and emerging challenges. ment partners, in particular the IMF, MDBs and the UN, is essential, as are partnerships with international NGOs IDA’s central role and CSOs. IDA sustained and built on these partnerships IDA stepped up to respond to an unprecedented even as travel restrictions disrupted face-to-face global crisis. IDA has never shied away from daunting interaction. challenges facing member countries. In the face of the “ COVID-19 pandemic, IDA redoubled efforts with a sig- nificant upsurge in financing to support the response. IDA’s innovative funding model was a cornerstone of this In discussions with our clients, I felt that the effort. IDA18 represented a paradigm shift. Obtaining a crisis created a real sense of ‘we are in it AAA credit rating and issuing bonds in the international together, as humans, solving problems that capital markets for the first time in its history enabled IDA affect all of us.’ COVID-19 was the great to expand financing to member countries by 50 percent. That milestone enabled a remarkable scale-up with every centrifuge for solutions, but also the great $1 in new partner contributions generating more than $3 equalizer, and that helped to focus on solutions, in support for the poorest and most vulnerable countries. not problems or obstacles. It forced teams to This was made possible by the use of capital market fi- think of ways in which things could be done in nance and loan reflows, positioning IDA to act effectively solution thinking mode. when crisis struck. -Health TTL ” 59 LESSONS LEARNED AND LOOKING FORWARD Figure 4.1. COVID-19: Economic Response April 2020 to June 2021 IDA’s Financial Contribution to the COVID-19 identifies the Bank’s engagement with partners, including Response Compared with other MDBs (to global partners outside of the development community, DSSI eligible countries) such as UN agencies, as a key factor that affected the US$ billion quality of the Bank’s early response.70 IDA not only con- venes platforms, but it can also serve as a critical source of support for country-led platforms, as the success in 1.6 2% IBRD implementing PCs on support to country-led platforms 17.3 28% for JET and support for citizen engagement in national policy has demonstrated. 24.5 22.9 IDA 39% 37% Softening tradeoffs 20.4 IDA helped countries balance emergency support and 33% longer-term development. During IDA19, the polycrisis forced IDA countries to make difficult choices between preserving essential government services and halting a MDBs (Excluding EIB, IsDB) IMF World Bank deadly pandemic, and between immediate and vital fi- Note: Data shows WB, IMF and MDB disbursements nancing needs and longer-term debt sustainability. IDA to DSSI-eligible countries from April 2020 - May 2021 adapted its program of support to enable surge financ- ing and help countries address these competing needs. The decision to advance IDA20 represented a unique mo- Surge financing was used across a broad swath of sec- ment of global solidarity. Representatives of developed tors, to cushion setbacks and protect development gains and developing countries joined forces in a determined in climate, health, education, agriculture, infrastructure, effort to support a green, inclusive, and resilient recovery social protection, and other critical development priori- for all. Working remotely, IDA effectively raised $16 bil- ties. Investments in building resilient systems to deliver lion for the global response in less than a year and used essential services were shown to offset risks of service the resources to respond on an unprecedented scale. disruptions. This demonstrated the effectiveness of in- IDA’s capacity to adapt rapidly and deliver at scale was a corporating shock response and contingency elements in product of its longstanding collaborative processes. IDA the operational planning process. For those countries Deputies, Borrower Representatives, and Management with lower risks of debt distress, scaling up investments convene at regular cycles to review IDA performance, with somewhat less concessional financing provided to consider emerging needs, and adjust its architecture be one valuable tool for advancing development priori- when needed. This long-established practice served the ties while managing debt sustainability. IDA partnership well when rapid decisions were required. “ Despite lockdowns and travel restrictions, IDA19 con- tinued to convene essential discussions at the global, regional, and national levels. The SDFP’s Program of When we went on lockdown, my life shifted Creditor Outreach illustrates how IDA can support to my basement “command center” in structured dialogue among IDA borrowers, public and Washington, D.C. With the family at home private sector lenders, academics, civil society, and and preparations for projects covering seven other stakeholders to shed light on the pressing issue of countries in the Sahel, you can imagine the debt sustainability and the importance of transparency to securing sustainable development financing. Review challenges! Some things like our accessibility to processes under IDA envelopes and windows have show- clients probably improved despite the mission cased how complex policy dialogue on issues of fragility stoppage - at least once we all learned how to and population movements benefit from IDA’s strong use virtual tools effectively. collaboration with other development partners, including - Social Development TTL ” UN agencies, funds, and programs, in particular when di- alogue aligns with client policy priorities. IEG’s evaluation of the World Bank Group’s Early Support to Addressing 60 LESSONS LEARNED AND LOOKING FORWARD Operational response IDA served clients despite severe mobility restrictions, logistical challenges, and difficult circumstances. Staff’s ability to adapt to unprecedented challenges at a time of great uncertainty was an important enabler of the results achieved. It is also reflected in the clear and con- sistently positive trend in client feedback throughout IDA19 (Figure 4.2). Somewhat counter-intuitively, clients reported an improvement over the IDA19 cycle in how responsive and accessible IDA was at the time of mo- bility challenges. These results may indicate the strong resilience of IDA’s business model. In some cases, a high degree of worldwide technology adoption may have fa- At the same time, the pandemic outbreak exposed how cilitated increased accessibility compared with the more ill-prepared many IDA countries were – along with IBRD mission-focused pre-pandemic way of preparing and and OECD countries. IEG observes that in a highly un- supporting projects. certain context, the World Bank’s response was unprece- Figure 4.2. dented in scale and speed, and relevant to country needs. IEG also found that “support addressed country needs Better Client Feedback most comprehensively where earlier work on human cap- Average client rating 7.8 ital had built preparedness….”71 Efforts to break the cycle 7.5 1= low to 10= high 7.4 of “panic and neglect” that followed the 2002-04 SARS outbreak, the 2014–16 Ebola outbreak, and the 2015–16 7.1 6.9 7.1 Zika outbreak were at best only partially successful. The Target= 7 fact that preparedness was so limited at the time of the COVID-19 pandemic despite these earlier viral outbreaks 6.8 6.6 highlights the difficulty of maintaining focus on pandemic 6.5 6.5 preparedness and resilience once a pandemic outbreak ends – especially in resource-constrained IDA countries that face many other competing and urgent priorities. FY18 FY19 FY20 FY21 FY22 IDA18 IDA19 Breaking the “panic and neglect” cycle remains a key challenge in IDA countries and beyond if the world is to Client feedback in IDA countries on WBG effectiveness and impact on results be better prepared for the next pandemic. IEG’s evalu- Client feedback on WBG on responsiveness ation of The World Bank’s Early Support to Addressing and staff accessibility COVID-19 Health and Social Response confirms the criti- IDA19 annual target cal importance of preparedness. “ We were preparing a project under the lockdown conditions when I moved to a new region, new teams, new projects, and new clients. It was a big change: having to say farewell to client representatives and colleagues I had worked with for years and getting to know new people through a tiny computer screen. Still, and in hindsight, it was surprisingly easy to build personal relationships with new colleagues virtually, but it was more difficult to get the overall picture of what's happening on the ground with our country programs. There is nothing more helpful to immerse oneself in a new operation and country than a mission, but I did not have that chance. It was interesting and challenging at the same time. Now that we have started to travel again, it is great to meet face-to- face people you have worked with for over two years. – Forestry TTL ” 61 LESSONS LEARNED AND LOOKING FORWARD Relevance to IBRD climate change adaptation and disaster risk reduction. There are increasing synergies between IDA and IBRD, The introduction of Cross-cutting Issues into the policy particularly in the global emergency context. IDA19 package helped raise the profile of human capital and led IBRD in important achievements, such as the quick disability inclusion at a critical time. And IDA’s RW offered introduction of the COVID-19 MPA and knowledge on financing that helped promote collaboration among IDA the pandemic and vaccines. Innovations launched in IDA countries as they invested in global public goods. countries were subsequently adopted by IBRD countries. Beyond the COVID-19 response, since the introduction Preserving country leadership and of the Special Themes, IDA has often forged new paths, flexibility with GPs adapting the knowledge gained through IDA- financed operations for application in IBRD contexts. One such instance is the Gender Special Theme, which has evolved dramatically since its introduction in IDA16. “ There’s a tendency to get going with work quickly and move on. Despite how quickly we It has played a vital role in generating knowledge and demand for activities not only in IDA countries but also in were moving, it was critical for me to take a IBRD countries. The Gender Special Theme has been in- step back and think about how to create an strumental in establishing a strong knowledge base and environment, even if it was virtual, to bring valuable experience. This was achieved by progressively people together in interactive ways that would introducing policy commitments that laid the foundation catalyze creative thinking while building team for deeper gender work, including the adoption of a new cohesiveness and think in different ways. WBG Gender Strategy in IDA17, the prioritization of key -Health TTL ” areas and concrete results-focused delivery in IDA18, and a sharpened focus on lagging areas in IDA19. While this framework was introduced through IDA, WBG mon- itoring of the implementation of the Gender Strategy While relevant, IDA’s architecture and policy package indicates that it has helped drive gender issues in opera- impacted its flexibility to respond to members’ emerging tions financed also by IBRD and IFC. Other development priorities. The country-led model remains core to IDA’s ap- areas are now proceeding along a similar trajectory, such proach. It builds on flexibility and selectivity to help client as disability inclusion. countries use IDA resources effectively as they advance their key development priorities. A trend established over Long-term development recent cycles has, however, acted to de-emphasize this IDA’s architecture and policy package helped it maintain flexibility to some degree. The cycle’s five Special Themes, a focus on long-term priorities even as it supported an four Cross-cutting Issues and the 44 associated policy unprecedent crisis response. IDA’s regular replenishments commitments helped direct efforts to agreed priorities, ensure that partners periodically review and adjust its pol- but they restrict flexibility to accommodate shifts in client icy package and architecture to respond to priority needs. demand, for example as countries deal with unexpected As a result, IDA has already moved to address a number emergencies, an issue amplified in global crises such as of issues that are being considered in the ongoing WBG pandemics. Since IDA17, each IDA cycle has doubled the Evolution discussions. Already the leading provider of number of country level actions required by IDA’s policy concessional climate finance to low-income countries, IDA package. In IDA19, 510 separate country level actions were continued to expand financing in IDA19 and to increase required (Figure 4.3). The SDFP PPAs also require signifi- the availability of grant financing for climate response. cant policy action by country authorities. The PPAs are also The introduction of the FCV Envelope supported the a good example of an initiative that aims to incentivize WBG’s Strategy for Fragility, Conflict and Violence and reforms in one area but that also affects IDA’s ability to be provided resources to IDA countries tackling some of the flexible and adaptable in other areas. Failure to implement most complex challenges. The SDFP built on lessons from PPAs under the SDFP, for example, can affect a client’s el- previous cycles to emphasize the centrality of sustainable igibility to receive reallocations or to frontload resources financing to future agenda. The CRW’s Early Response during a cycle. While effective in incentivizing action on Financing was quickly adopted by those IDA countries the urgent priority of debt sustainability, the initiative can facing growing food insecurity, and IDA began to increase be somewhat constraining if and as IDA clients must mobi- the use of crisis preparedness financing instruments for lize a large-scale response to other global crises. 62 LESSONS LEARNED AND LOOKING FORWARD Figure 4.3. Governance and Institutions Special Theme was re- Increased country-level actions from IDA aligned as a Cross-cutting Issue in IDA20 to better reflect countries for policy commitments the cross-cutting nature of governance interventions. 29 Building on the foundational work in IDA19, the IDA20 1011 1000 package scales up the support to disability inclusion Number of Country-Level Actions 28 across Practice Groups and Sectors with dedicated policy 27 800 commitments and a new IDA RMS indicator, in addition to ongoing work to build IDA countries’ statistical capac- US$ billion 26 26 600 510 ity to track disability. IDA20 continued the implementa- 25 tion of the SDFP based on the IDA19 experience and 400 248 adjusted the balance of country and window allocations, 24 24 including scaling up the FCV Envelope, the RW and the 120 200 23 23.5 CRW. IDA20 also made all IDA windows instrument-neu- 23 tral by allowing PforR to access RW financing, following 22 0 IDA17 IDA18 IDA19 IDA20 an operation approved in IDA19 using a waiver. “ IDA donor contribution Country-level actions from Policy Commitments Note: Country-level actions are those taken by IDA clients as part of Right at the start of the pandemic, I said to country programs, as agreed in policy commitments. These typically include IDA support for investments, analytics, policy frameworks, a colleague that let’s not forget the need to or strategies. Policy commitments for which the number of continue to strengthen health systems, which country-level actions are uncertain (for example, 35% of infrastruc- ture projects) and for co-benefits are counted as zero. IDA actions is now the big lesson that came out of this. The (for example, adjustments to Bank guidance) are counted as zero. stronger the health system is, the stronger it can withstand an impact of something like a pandemic. 4.2. Adjustments in IDA20 – Africa Human Development Portfolio Advisor In the history of IDA, the experience gained in imple- menting IDA19 was in many ways exceptional. The sharply increased needs in IDA countries, the significant ” mid-cycle adjustments, the accelerated implementation, 4.3. IDA20 and Beyond and the increased magnitude of support all provided valuable lessons that helped pave the way for the IDA20 The implementation of IDA19 under exceptional circum- replenishment. For instance, at a time of huge needs in stances leaves an important legacy for IDA. The expe- IDA countries, IDA20 was able to draw on the experience rience provides a foundation for future replenishments, with balance sheet optimization in IDA18 and IDA19 to underscoring the importance of IDA remaining flexible make limited resources go further. New concessional enough to adjust to unforeseen crises, and sufficiently shorter-maturity loans were introduced for IDA-only resourced to respond to urgent and widespread needs. countries at low or moderate risk of debt distress and It also suggests that IDA can continue to play a key role Gap and Blend countries, along with new 50-year credits in supporting IDA countries’ counter-cyclical measures at for IDA-only yellow light countries. The pandemic also a time of economic contraction. And the work in IDA19 made evident the need to increase investments to on pandemic preparedness underscores the importance strengthen health systems, schools, and social protection of breaking the “panic and neglect” cycle by supporting to manage the tail end of the pandemic, and to build countries to make investments for crisis preparedness at resilience ahead of future pandemic and crisis shocks. To times when they do not face any crisis, even as they face accomplish this, IDA20 introduced Human Capital as a other pressing needs. new Special Theme, and adopted targeted policy com- mitments. Crisis preparedness was further elevated The needs are unlikely to be reduced soon. The lingering through a standalone policy commitment as part of its effects of the economic contraction following the pan- own Cross-cutting Issue to support countries to identify demic and other crises during IDA19 will make gradua- critical preparedness gaps. At the same time, IDA19’s tion a more difficult goal to attain for many IDA countries. 63 LESSONS LEARNED AND LOOKING FORWARD IDA will need to redouble efforts to support countries Box 4.1 WBG Evolution Roadmap to recover, rebuild, and achieve long-term develop- Recognizing that the world must do more to address ment goals, with strong support from the international the crisis facing development and that the World community. Bank Group is central to these efforts, WBG share- holders asked World Bank Management to develop In addition, as global challenges come into sharper focus an Evolution Roadmap, options and pathways that with the increasing effects of climate change and with will help address the defining challenges of our time. crises similar in scale to the COVID-19 pandemic, IDA An initial discussion on January 11, 2023 established will be expected to do more. The call for IDA to take on consensus on the guiding principles of the Evolution Roadmap process, which is led by the World Bank’s a larger role in addressing global challenges should be Board. One of the principles is that the WBG must seen against a backdrop of critical long-term develop- continue serving all clients including low- and ment goals of IDA countries, including the reduction of middle-income countries, tackle their priority devel- extreme poverty and the promotion of shared prosper- opment issues faster and in a way that advances ity. As the preparation of the WBG Evolution Roadmap select global challenges, including issues such as continues, the implementation of IDA19 offers a valuable climate change and pandemics. experience in addressing a pandemic that spread across The Evolution Roadmap work focuses on three build- the globe without regard for borders, while maintaining ing blocks: WBG vision and mission; operational focus on long term development goals. This experience model; and financial capacity. Discussions will involve can help guide the scaling of IDA’s support for global iterative, inclusive, and collaborative engagements challenges while maintaining the country-led engage- working closely with Bank Management and listen- ment model as foundational. Strong support from IDA ing to voices inside and outside the Bank, especially participants will enable IDA to provide concessional and clients. Poverty reduction and broader socio-eco- grant financing at a time of urgent country-level needs as nomic development remain at the heart of this effort, well as global challenges. as well as global challenges, such as climate change, pandemic preparedness, and fragility. Transparency The hybrid financial model introduced in IDA18 served will be essential to the effectiveness of its outcome. IDA19 well at a time of great uncertainty and should Two key steps are expected to be concluded before continue to enhance future replenishments by increasing the Mid-Term Review of IDA20 implementation. external financing, even as IDA’s financial stability is safe- Development Committee paper for the 2023 Spring guarded. As IDA countries work to recover, rebuild, and Meetings will cover initial proposals on all three build- achieve long-term development goals they will require ing blocks. Based on the Governors’ guidance and additional external sources of finance, including from additional discussions, a Development Committee paper will be prepared for discussion at the 2023 IDA. IDA will only be able to meet this need with strong Annual Meetings. support from its participants during coming replenish- ment cycles. 64 Endnotes Endnotes 1 World Bank. Poverty and Shared 14 World Bank. “Feature Story: Cash for 25 Baysa Naran, Jake Connolly, Paul Prosperity 2022: Correcting Course. Work: Changing Yemeni Women’s Rosane, Dharshan Wignarajah, Washington, DC: World Bank. Lives.” March 9, 2021. Githungo Wakaba and Barbara 2 World Bank, UNESCO, UNICEF, UK 15 This is tracked in Tier 3 of the RMS. Buchner. “Global Landscape of FCDO, USAID, Gates Foundation. Climate Finance: A Decade of Data,” 16 This number was previously reported State of Global Learning Poverty: October 27, 2022. Climate Policy in the IDA19 Implementation and 2022 Update. Washington, DC: World Initiative. Delivery paper as 84 due to a data Bank. reporting error. 26 World Bank. Resilience Rating 3 Salman Asim, RavinderGera, and System: A Methodology for Building 17 World Bank. 2022. “Supporting Archit Singhal “Learning loss from and Tracking Resilience to Climate Legal Reforms to increase women’s Covid in Sub-Saharan Africa: Evidence Change. 2021. Washington, D.C.: workforce participation in Pakistan.” from Malawi”, April 19, 2022. World Bank. . In addition, an Results Brief. Washington, DC. accompanying methodology on how 4 Ibid. 18 These include achieving gender to add a stress test for climate change 5 Before their April 2021 meeting, IDA equality and empowering all women and natural disasters to the economic partners had conducted thorough and girls through universal access to analysis of a project has also been consultations on the way forward sexual and reproductive health care, developed. Stephane Hallegatte; for IDA19, including holding formal women’s equal rights to economic Rubaina Anjum; Paolo Avner; Ammara virtual meetings to consider options in resources, as well as access to Shariq; Michelle Winglee; Camilla June, October, and December 2020 ownership and control over assets Knudsen. “Integrating Climate and in February 2021. and financial services, promotion of Change and Natural Disasters in the 6 World Bank. “Press release: women’s empowerment through the Economic Analysis of Projects : A World Bank Launches Early IDA20 use of enabling technology, and the Disaster and Climate Risk Stress Test Replenishment to Help Poorest elimination of all forms of violence Methodology,” 2021. Washington, Countries Recover from the COVID-19 against women and girls in the public D.C.: World Bank. Crisis,” April 15, 2021. and private spheres. 27 International Institute for Strategic 7 World Bank Development Finance 19 Victor H. Orozco-Olvera; Rascon Studies. Armed Conflict Survey 2021. Corporate IDA and IBRD. Adjustments Ramirez; Ericka Gabriela. “Improving London, United Kingdom. to IDA19, June 8, 2021. Washington, Enrollment and Learning Through 28 WBG data, based on Poverty and DC. World Bank. Videos and Mobiles: Experimental Shared Prosperity 2022: Correcting Evidence from Northern Nigeria” 8 Using the IDA19 foreign exchange Course. February 12, 2023. Available at SSRN. reference rate of SDR/$ 1.31318. 29 World Bank. “Results Brief: Boosting 20 Melissa Ann Adelman; Iva Trako; 9 Of this sum, about $5.2 billion Access to Affordable Solar Energy in Eliot Kevin Faron De Goer De originated from a few large borrowers: Yemen,” July 18, 2022. Herve; Maroua Sallami. “Snapshot Afghanistan, Ethiopia, Mali, Myanmar, 30 World Bank. “Results Brief: Boosting of the Basic Education Gender Gap: and Sudan. Access to Affordable Solar Energy in Progress, Challenges, and Variations 10 Resources were also reallocated from Across DRC (English),” June 1, 2021. Yemen,” July 18, 2022. cancelled balances, SDFP set-asides Washington, D.C.: World Bank Group. 31 Country Partnership Frameworks, and unallocated FCV Envelope Country Engagement Notes and 21 Melissa Ann Adelman; Iva Trako; resources. Performance and Learning Reviews. Eliot Kevin Faron De Goer De Herve; 11 Note that not all Tier 3 indicators Maroua Sallami. “Determinants of the 32 IDA initially assessed that 10 PCs in include performance standards; Basic Education Gender Gap in DRC the G&I Special Theme had been some are monitored for trends rather : Supply and Demand Side Factors,” achieved, while two–PC 4 regarding than managed to achieve specific June 1, 2021. Washington, D.C.: the identification of constraints to expected value. World Bank Group. infrastructure investments, and PC 11 12 Appendix 2 to this report lists the 22 Melissa Ann Adelman; Iva Trako; regarding strengthening core govern- original text of all policy commit- Eliot Kevin Faron De Goer De Herve; ment functions in IDA FCS countries– ments, as well as the final agreed Maroua Sallami. “Policy Implications had fallen marginally short of targets. targets, noting those that were of the Basic Education Gender Gap World Bank. IDA19: Implementation adjusted. in DRC,” June 1, 2021. Washington, and Delivery. October 6, 2022. D.C.: World Bank Group. Washington, D.C.: World Bank Group. 13 As in IDA19, significant balance sheet G&I PC 3 committed to improving optimization (BSO) measures helped 23 IDA19 and its Climate Change Special domestic resource mobilization in to augment the size of the IDA20 Theme was designed prior to the the IDA countries with tax-to-GDP replenishment envelope. Donor WBG Climate Change Action Plan ratios consistently below 15 percent. contributions remained the key factor 2021-2025. IDA20 is fully aligned with Considerable progress was made in establishing the IDA20 envelope, the CCAP. on this commitment in what proved but balance sheet optimization 24 World Bank. “Results Brief: to be a uniquely difficult pandemic measures increased the envelope by Strengthening Climate and Disaster context, given that many countries an additional $14 billion. Resilience in Honduras,” December prioritized tax relief, and the PC target 21, 2022. of achieving an average improvement 65 Endnotes in-to-GDP ratios of 1 percentage mechanism, initially designed with measured by a loan’s “grant ele- point was initially reported as a “hard stop” at the end of each ment”. During IDA19, IDA offered achieved. However, on subsequent IDA cycle, was adjusted to run concessional credits on either regular, review the average improvement continuously across cycles. Under the blend, or small economy terms. The reached 0.33 of a percentage point, adjusted approach, if an IDA country concessionality of each type of credit and so the status of the PC has been fails to implement a PPA, it is subject varies, from 35 percent for blend, to changed to “not achieved” in this to a set-aside. If it implements the 53 percent for regular, and 61 percent Retrospective. PPA satisfactorily within two years, it for small economy terms, respectively. 33 Andrew Dabalen; Kristen Himelein; can recover the set-aside. If a country This means that, every dollar provided Carlos Rodriguez Castelan. Data fails to implement a PPA for two to IDA countries in credit form for Policy Initiative. Poverty and consecutive fiscal years, irrespective contained a grant element of at least Equity Notes No. 23. June 2020. of when this takes place in a replen- 35 cents, and often more. Washington, D.C.: World Bank. ishment cycle, it will permanently 50 For details on bulk reallocations lose access to the set-aside, which approved by the Board and endorsed 34 Kiribati, Marshall Islands, Micronesia, amounts to a discount. by IDA Participants please see Timor-Lest and Tuvalu. 42 COVID-19 led to the largest accumu- Adjustments to IDA19, IDA/R2021- 35 Open Contracting Partnership. lation of fiscal risks since World War 0189. Washington, DC: International Fulfilling the Promise of II. At the end of 2020, total debt in Development Association and IDA19: E-Procurement Reform: Lessons developing economies—government, Reallocation of Resources, IDA/R2021- from Five African Countries, 2022. household, and private sector debt— 031. Washington, DC: International Washington, D.C.: Open Contracting equaled more than 200 percent of Development Association for infor- Partnership. GDP, a 50-year record. mation on additional reallocations 36 World Bank. “Results Brief: Ghana: (Regional Window, CRW), reallocation 43 World Bank. The International Online Education for Delivering flexibilities accorded to Management, Development Association’s Learning Outcomes during the and redistribution of SDFP set-asides. Sustainable Development Finance COVID-19 School Closure,” May 16, Policy: An Early-Stage Evaluation, 51 Using the IDA19 foreign exchange 2022. Independent Evaluation Group, reference rate of SDR/$1.38318. 37 Bangladesh, Benin, Burundi, November 10, 2021. Washington, 52 Seventy-four countries were eligible Cameroon, Côte d’Ivoire, Ethiopia, D.C.: World Bank to receive IDA financing during the Liberia, Malawi, Mauritania, Nigeria, 44 Maldives and Pakistan failed to cycle. Four received none, either Pakistan, Senegal, Sierra Leone, implement FY21 PPAs; these were due to non-performing loans (Eritrea, Somalia, and Tanzania. carried over into FY22 and once again Syria, Zimbabwe) or due to a pause 38 Norbert Schady; Alaka Holla; were not met. The failure to imple- in disbursements on operations Shwetlena Sabarwal; Joana Silva; ment in FY22 resulted in a permanent (Myanmar, following the February 1, Andres Yi Chang. Collapse and discount of the FY22 set-aside country 2021 military coup). Three non-IDA Recovery: How the COVID-19 allocation for both countries and a eligible countries received resources Pandemic Eroded Human Capital and hardening of terms for Maldives. during the cycle. Moldova and What to Do about It. February 16, Mongolia received exceptional assis- 45 World Bank. A Changing Landscape: 2023. Washington, D.C.: World Bank. tance totaling $107 million to support Trends in Official Financial Flows and 39 Thomas Bowen; Carlo del Ninno; the Aid Architecture; November 1, COVID-19 responses. In addition, in Colin Andrews; Sarah Coll-Black; Ugo 2021. Washington, D.C.: World Bank. April 2022 the Executive Directors Gentilini; Kelly Johnson; Yasuhiro of IDA approved an increase in the 46 World Bank. Understanding Trends in Kawasoe; Adea Kryeziu; Barry adjusted IDA19 commitment authority Proliferation and Fragmentation for Maher; Asha Williams. International by $1 billion, enabling IDA to provide Aid Effectiveness During Crises, July Development in Focus - Adaptive an exceptional $1 billion in support to 19, 2022. Washington, D.C.: World Social Protection: Building Resilience Ukraine, supplementing $72 billion in Bank. to Shocks. May 20, 2020. Washington, IBRD resources. In the same decision, D.C.: World Bank. 47 World Bank. “Press Release: Global additional $100 million in exceptional Community Steps Up with $93 resources were provided to Moldova 40 This includes: (a) enhancing debt Billion Support Package to Boost through the CRW to support Moldova transparency by increasing reporting Resilient Recovery in World’s Poorest in grappling with the effects of by borrowers to the international Countries.” December 15, 2021. Russia’s invasion of Ukraine, which statistical databases and wider 48 Beginning IDA18 IDA also began resulted in large refugee flows into publishing of debt data by the IMF to offer some grant financing for Moldova. and the World Bank; (b) scaling up debt recording and debt manage- countries at lower risk of debt distress 53 Countries eligible for the FCV ment capacity development activities to incentivize support for refugees Envelope may receive one of three for borrowers; (c) improving analytical and host communities. While not possible allocations that supple- tools which include the revision of the normally eligible for grant financing, ment the PBA: (i) the Prevention DSA frameworks; and (d) redesigning when these lower-risk countries access and Resilience Allocation provides the IMF and World Bank policies in financing through the Window for enhanced support for countries relation to responsible borrowing and Host Communities and Refugees, 50 at risk of falling into high-intensity lending. percent of the WHR financing may be conflict or large-scale violence, based accessed as IDA grants. on government commitment and 41 Along with other adjustments made 49 Most IDA credits are also provided agreed milestones; (ii) the Remaining at the start of the cycle to respond at highly concessional terms, as Engaged during Conflict Allocation to COVID-19, the SDFP set-aside 66 Endnotes enables IDA to maintain a base level financed projects. “Mid Term Review 69 PSW support can flow through of engagement in a small number of the Crisis Response Window Early four facilities. The Local Currency of countries that experience high-in- Response Financing” (September Facility helps reduce currency risk for tensity conflict and have extremely 2021). impactful IFC projects in countries limited government capacity; and (iii) 59 Includes Djibouti, which is supported where local currency solutions are the Turn Around Allocation supports by the WB’s Middle East and North absent or underdeveloped. The MIGA countries emerging from a period of Africa Regional Vice Presidency, rather Guarantee Facility expands coverage conflict, social/political crisis or disen- than by Africa East or Africa West. of MIGA guarantees through shared gagement, where there is a window first loss and risk participation. It is 60 CRW Last Resort funds were, however, of opportunity to pursue reforms akin to reinsurance for investments in used to finance Health, Nutrition, and that can accelerate a transition out of infrastructure, agribusiness, manufac- Population projects, with about 20 fragility and build resilience, based on turing and services, financial markets percent of CRW financing used for government commitment and agreed and public private partnerships. The this purpose. milestones. Blended Finance Facility blends PSW 61 Cabo Verde, Vanuatu, and Yemen. funds with pioneering IFC investments 54 Excludes pre-arrears clearance grant for Sudan of (SDR287.9 million). 62 International Monetary Fund. across sectors with high development World Economic Outlook: A Long impact, including small and medi- 55 A comprehensive review of the op- and Difficult Ascent. International um-size enterprises, agribusiness, erationalization of the FCV envelope Monetary Fund, October 2020. health, education, affordable housing, was completed at the IDA19 MTR to infrastructure, climate change mitiga- review progress and discuss course 63 A total of 17 countries were poten- tion and adaptation, among others. corrections: World Bank. IDA19: Mid- tially eligible to access WHR funds The Risk Mitigation Facility provides term Review of the Operationalization in IDA19, of which 10 countries, project-based guarantees without of the Fragility, Conflict and Violence namely Burundi, Chad, Djibouti, sovereign indemnity to crowd-in (FCV) Envelope (English). September the Democratic Republic of Congo, private investment in large infra- 23, 2021. Washington, D.C.: World Ethiopia, Kenya, Niger, Rwanda, structure projects and public private Bank Group. South Sudan and Uganda, pursued partnerships supported by IFC. and received WHR financing. 56 This number includes the exceptional 70 World Bank. 2022. The World Bank allocations to Moldova and Mongolia 64 In Chad, for example, schools in refu- Group’s Early Support to Addressing and excludes the recipient countries gee camps were officially integrated the Coronavirus (COVID-19) Economic under Global Fast-Track COVID-19 into the national education system, Response April 2020 to June 2021. facility. and their status changed to official Independent Evaluation Group. schools. The Government is also 57 Based on country status at the time of Washington, DC: World Bank. providing birth certificates to refugees CRW commitment. and working to transform camps in 71 World Bank. The World Bank’s Early 58 In the aftermath of crises, the World rural areas into villages and those in Support to Addressing COVID-19: Bank aims to collaborate with urban areas into neighborhoods. Health and Social Response. An development partners to assess Early-State Evaluation. Independent 65 WHR eligibility process for Tajikistan, resource availability, undertake needs Evaluation Group, November 15, as a preparedness response for assessments, and coordinate imple- 2022. Washington, D.C.: World Bank. Afghan refugees could not be mentation of crisis response activities, completed. and CRW last resort resources aim to complement other resources wherever 66 They included five energy and possible. The United Nations often extractives operations ($929 million); plays a central role in delivering four agriculture and food operations assistance in difficult environments, ($475 million); two water sector op- such as countries that are in conflict erations ($400 million); three finance, or countries with very weak capacity. competitiveness, and innovation In IDA19, this was the case for the operations ($375 million); and two $50 million CRW allocations to Yemen transport operations ($220 million). and Somalia for the “Food Security 67 They are Benin (20%), Bangladesh Response and Resilience Project” (20%), Senegal (19%), Rwanda (11%) and “Shock Responsive Safety Net and Côte d’Ivoire (10%). Fourteen out for Human Capital Project” imple- of the 21 SUW-financed operations mented by the Food and Agriculture were in these five countries. Organization (FAO), World Food 68 The initial allocation for the IDA19 Program (WFP) and United Nations PSW was $2.5 billion, but it was Development Fund (UNDP). The reduced to $1.7 billion due to the responses to an earthquake in Haiti shortening of the IDA19 cycle. and a tsunami in Tonga were also undertaken in collaboration with a variety of organizations. IDA’s close coordination with other development partners informed the design of the ERF, is considered in allocation of ERF resources, and often plays an import- ant role in implementation of ERF 67 IDA19 Results Measurement System APPENDIX A. IDA19 Results Measurement System This appendix presents updated results data for the 79 indicators monitored in IDA19’s Results Measurement System. The table provides the baseline value at the beginning of the cycle, FCS and sex disaggregation where appropriate and feasible, and the expected value or range for the IDA19 cycle. Expected values for 16 Tier 2 indicators and one Tier 3 indicator were adjusted to reflect the decision to compress the IDA19 cycle from three to two years. The detailed indicator table notes those changes with an asterisk (*) and shows both the adjusted expected value and, in italics, the original value. IDA19 exceeded 24 RMS targets and met nine. For nine indicators, IDA19 made progress but fell short of the expected value, in some cases by very small margins. TIER 1: IDA COUNTRIES’ PROGRESS Baseline (as of June Results (as of June 2022) No. Indicator Unit of Measure 2020) All IDA/FCS All IDA/FCS (female) (Coverage Year) (Coverage Year) World Bank Group Goals Population living on less than $2.15 % of population 26.6 / 42.5 26.9 / 35 1 a day (2018) (2019) Median growth rate of consumption/ % 1.3 / -0.5 1.2 / 5.9 2 income per capita of the bottom 40 (2018) (2019) percent 3 Countries with growth concentrated in % 30 / 0 50 / 100 the bottom 40 percent (2018) (2019) Sustainable and Inclusive Growth 4 GDP per person employed Constant 2017 PPP 10,544 / 10,025 10,770 / 9,777 $ (2019) (2021) 5 Non-agriculture sectors, value added % 80.0 / 78.6 79.3 / 78.4 (as % of GDP) (2019) (2021) Legal changes that support gender Number of legal 25 / 11 5/1 6 equality changes (Jun 2017–Sept 2019) (Oct 2020–Oct 2021) 7 Proportion of population with access % of population 58.9 / 48.8 61.2 / 50.1 to electricity (2018) (2020) 8 Annual growth rate of real GDP per % 1.74 / -0.22 1.77 / -1.46 capita (2019) (2021) 9 Ratio of female to male labor force % 71.0 / 74.7 70.4 / 74.0 participation rate (2019) (2021) Youth employment to population ratio % 41.8 / 35.5 39.7 / 33.7 (age 15–24) (2018) (2021) 10 Youth employment to population ratio % 35.4 / 31.4 33.6 / 30.0 (age 15–24), women (2018) (2021) Youth employment to population ratio % 48.1 / 39.6 45.5 / 37.4 (age 15–24), men (2018) (2021) Proportion of adults (15 years and % 37 / 24 44 / 42 11 older) with an account at a bank or (30 female) (37 female) other financial institution or with a (2017) (2021) mobile money service provided 68 IDA19 Results Measurement System TIER 1: IDA COUNTRIES’ PROGRESS (continued) Baseline (as of June Results (as of June 2022) No. Indicator Unit of Measure 2020) All IDA/FCS All IDA/FCS (female) (Coverage Year) (Coverage Year) Human Capital Prevalence of stunting among children % 32.9 / 35.4 32.2 / 34.9 12 under 5 years of age (28.9 female) (2020) (2019) Maternal mortality ratio Number of maternal 455 / 619 445 / 609 (2017) 13 deaths per 100,000 (2016) live births 14 Proportion of births attended by % 48.8 / 53.1 62.1 / 59.8 skilled health personnel (2010) (2018) Under-5 mortality rate Number of under- 70.9 / 89.4 66.7 / 84.6 15 five deaths per (2018) (2020) 1,000 live births Incidence of HIV % of uninfected 0.79 / 0.80 0.71 / 0.72 16 population ages (1.0 female) (0.90 female) 15–49 (2019) (2020) 17 Contraceptive prevalence by modern % of married women 26.8 / 18.1 31.4 / 20.7 methods ages 15–49 (2010) (2018) Adolescent fertility rate Number of births 83.6 / 96.6 81.4 / 93.3 18 per 1,000 women (2018) (2020) ages 15–19 19 Population of children who cannot % - 81.8 / - read by end-of-primary-school age (2019) Lower secondary gross completion 51.1 / 46.4 50.8 / 45.8 rate (49.3 female) (49.1 female) 20 % (2018) (2020) - Ratio of girls’ to boys’ completion 93.3 / 83.2 93.5 / 83.4 rate (2018) (2020) Lower secondary enrollment rate 58.5 / 54.3 57.3 / 51.3 ( 57.1 female) (55.9 female) 21 % (2018) (2020) - Ratio of girls’ to boys’ enrolment rate 95.5 / 88.5 95.3 / 87.6 (2018) (2020) 22 People using basic drinking water % of population 72.1 / 65.6 72.8 / 66.7 services (2019) (2020) 23 People using basic sanitation services % of population 43.2 / 39.4 43.9 / 39.8 (2019) (2020)  Resilience and Sustainability CO2 emissions metric tons per 0.54 / 0.44 0.55 / 0.44 24 capita (2017) (2019) 25 Countries without wealth depletion % 53 / 50 60 / 56 (2014) (2018) 26 Average annual deforestation change % 0.25 / 0.12 - (2016) 27 Marine protected areas % of territorial 3.1 / 4.0 3.4 / 4.4 waters (2016) (2021) 28 Number of refugees by country or million 9.5 / 4.1 10.2 / 4.3 territory of asylum (2019) (2021) 29 Internally displaced persons, total million - high 33.5 / 30.8 41.9 / 37.0 displaced by conflict and violence estimate (2019) (2021) 69 IDA19 Results Measurement System TIER 1: IDA COUNTRIES’ PROGRESS (continued) Baseline (as of June Results (as of June 2022) No. Indicator Unit of Measure 2020) All IDA/FCS All IDA/FCS (female) (Coverage Year) (Coverage Year) Institutional Capacity No. of IDA countries that have an Number of countries 22 / 7 27 / 9 improved composite PEFA score (2020) (2022) in dimensions across the pillars of budget reliability, transparency 30 of public finances, and control in budget execution: (1.1) Aggregate expenditure outturn (9.1) Public access to fiscal information (24.2) Competitive procurement methods Unweighted average increase in tax- % - 0.34 / 0.38 31 to-GDP ratio in those IDA countries (2019–2022, 3-year with tax revenues below 15 percent of average) their GDP for three consecutive years 32 Statistical performance indicators (SPI) Scale from 0 to 100 49.4 / 43.1 49.3 / 42.6 (2018) (2019) 33 Number of IDA countries with low or Number of countries - 16 / 6 moderate risk from unsustainable debt (2021) Table A.1. IDA19 RMS Indicator Performance (Tiers 2 and 3) Tier II Tier III Total Exceeded expected values 10 14 24 Met expected values 7 2 9 Did not meet expected values 4 5 9 TIER 2: DEVELOPMENT RESULTS IN COUNTRIES SUPPORTED BY IDA OPERATIONS IDA18 Results Results Results Expected Range/ Unit of No. Indicator (FY18–20) (FY21–22) (FY21–22) Value Measure All IDA/FCS All IDA/FCS Female (FY21–FY22)1 Growth Farmers adopting improved Number of 6.9 / 0.23 2.4 / 0.32 0.60 2.75–3.30 million* 1 agricultural technology people (million) (1.70 female) Original value: 5-6 million Area provided with new/ ha 1,594,122 / 823,473 / 0.825–1.045 improved irrigation or 183,669 41,887 million ha* 2 drainage services Original value: 1.0-2.0 million People provided with new or Number of 26.2 / 3.4 24.4 / 11.9 15–25 million* 3 improved electricity service people (million) Original value: 35-50 million Generation capacity of GW 7.40 / - 4.0 / - 4–6 GW* 4 renewable energy Original value: 10GW Beneficiaries reached with Number of 4.1 / 0.19 19.3 / 0.83 10.1 3–4 million (95% 5 financial services beneficiaries (1.9 female) individuals, 5% (million) businesses) 6 Beneficiaries in IDA countries Number of 25.4 / 3.1 26.5 / 6.7 8.1 Monitored of job-focused interventions people (million) (8.3 female) 1 Expected Ranges/Values marked with * were adjusted at the IDA19 MTR in light of shifts in client needs, pandemic related restrictions on mobility, and the shortening of the IDA19 implementation period to two years. 70 IDA19 Results Measurement System TIER 2: DEVELOPMENT RESULTS IN COUNTRIES SUPPORTED BY IDA OPERATIONS (continued) IDA18 Results Results Results Expected Range/ Unit of No. Indicator (FY18–20) (FY21–22) (FY21–22) Value Measure All IDA/FCS All IDA/FCS Female (FY21–FY22)1 Number of people with Number of - 16.4 / 3.1 45–50 million* 7 enhanced access to people (million) Original value: transportation services 90-105 million Number of people provided Number of - 47.1 / 15.3 35–40 million* 8 with enhanced access to people (million) Original value: broadband internet 50-60 million Human Capital Beneficiaries of social safety Number of 58.8 / 19.5 170.1 / 21.5 86.9 30–50 million* 9 net programs people (million) (27.4 female) Original value: 30-40 million People who have received Number of 281.5 / 72.0 210.4 / 82.2 134.3 113–220 million* essential health, nutrition, and people (million) (154.5 female) Original value: population services 220-370 million (i) Children immunized Number of 105.1 / 24.1 76.1 / 25.6 38.1 30–75 million* people (million) (52.6 female) Original value:85-140 million 10 (ii) Women and children who Number of 132.3 / 40.3 114.4 / 46.1 76.3 75–125 million* have received basic nutrition people (million) (76.4 female) Original services value:100-150 million (iii) Number of deliveries Number of 44.1 / 7.7 19.9 / 10.5 19.9 8–20 million* attended by skilled health people (million) (44.1 female) Original personnel value:35-80 million Number of large-scale Number of - 36 / 8 20–30 assessments completed at assessments assessments* 11 primary or secondary level Original value:30-40 assessments People provided with access Number of 31.7 / 2.8 15.8 / 4.4 8.0 12–23 million* 12 to improved water sources people (million) Original value:25-35 million People provided with access Number of 22.8 / 2.6 10.2 / 1.6 5.1 7–13 million* 13 to improved sanitation people (million) Original services value:15-20 million People provided with Number of 15.6 / 2.8 20.3 / 8.0 10–12 million* 14 improved urban living people (million) Original conditions value:10-15 million  Resilience and Sustainability Projected energy or fuel Megajoules 5.8x10^9 / 13.1x10^9 / 2.0–2.5e9 MJ* 15 savings 1.7x10^9 1.0x10^9 Original value: 5.5x109 -6x109 MJ 16 Net GHG emissions tCO2eq / year -28,373,983 / -32,680,888 / Monitored -6,908,828 -16,101,1462 Countries supported toward Number of 46 / 20 62 / 26 30–45 countries* 17 institutionalizing disaster countries Original value: risk reduction as a national 30-40 countries priority with IDA support 2 The values for this indicator have been adjusted from the values reported as -32,126,353 (for all IDA) and -16,083,272 (for IDA FSC) in IDA19: Implementation and Delivery in October 2022. They have been updated to include four operations that were approved in July FY23 but were financed by IDA19. 71 IDA19 Results Measurement System TIER 2: DEVELOPMENT RESULTS IN COUNTRIES SUPPORTED BY IDA OPERATIONS (continued) IDA18 Results Results Results Expected Range/ Unit of No. Indicator (FY18–20) (FY21–22) (FY21–22) Value Measure All IDA/FCS All IDA/FCS Female (FY21–FY22)1 Institutional Capacity Number of IDA countries Number of - 41 / 12 30–35 countries 18 publishing annual and timely countries debt reports Number of IDA countries Number of 70 / 27 54 / 27 55 countries* that were provided statistical countries Original value: 19 capacity building support >60 countries by the WBG for the implementation of household surveys Number of IDA FCS Number of - 14 11 countries supported in building countries Original value:50% capacity to use field- (to be converted appropriate digital tools for into number of 20 collection and analysis of countries at the geo-tagged data, and apply start of IDA19) this technology to enhance project implementation and coordination (FCV Policy Commitment #5) TIER 3: IDA ORGANIZATIONAL AND OPERATIONAL EFFECTIVENESS Benchmark value Reported Re- Expected Unit of No. Indicator (as of end FY20) sults (FY22) Range/Value Measure All IDA/FCS All IDA/FCS (end of FY22)  Development Outcome Ratings 1 Satisfactory outcomes of IDA Country %, IEG rating 46 (FY17–20 exits) / 60 / 67 70% Partnership Frameworks (4-year rolling) 43 (FY17–20 exits) (FY19–22 exits) (4-year rolling) Satisfactory outcomes of IDA operations: i) as a share of commitments %, IEG ratings 81.6 (FY17–19 exits) / 84.8 / 78.2 80% 2 (3-year rolling) 69.2 (FY17–19 exits) (FY19–21 exits) (3-year rolling) ii) as share of operations %, IEG ratings 77.3 (FY17–19 exits) / 81.0 / 74.8 75% (3-year rolling) 76.1 (FY17–19 exits) (FY19–21 exits) (3-year rolling) Client feedback in IDA countries on Average rating 7.4 / 7.7 7.8 / 7.7 7 (Annual) 3 WBG effectiveness and impact on scale: 1–10 results 4 Client feedback in IDA countries on Average rating 7.3 / 7.6 7.5 / 7.6 7 (Annual) WBG knowledge scale: 1–10 Performance and Quality Satisfactory Bank performance in IDA-financed operations i) overall 84.0 (FY17–19 exits) / 87.9 / 86.4 80% 71.2 (FY17–19 exits) (FY19–21 exits) 5 ii) at entry 73.7 (FY17–19 exits) / 85.5 / 86.3 Monitored %, IEG Ratings 68.0 (FY17–19 exits) (FY18–20 exits) iii) during supervision 85.2 (FY17–19 exits) / 90.8 / 88.0 Monitored 75.2 (FY17–19 exits) (FY19–21 exits) 6 Quality of M&E in IDA-financed %, IEG ratings 50.4 (FY17–19 exits) / 64.7 / 61.7 60% operations (3-year rolling) 32.3 (FY17–19 exits) (FY19–21 exits) 72 IDA19 Results Measurement System TIER 3: IDA ORGANIZATIONAL AND OPERATIONAL EFFECTIVENESS (continued) Benchmark value Reported Re- Expected Unit of No. Indicator (as of end FY20) sults (FY22) Range/Value Measure All IDA/FCS All IDA/FCS (end of FY22) 7 Advisory Services and Analytics %, Client 92 / 97 90 / 89 80% objectives accomplished ratings 8 Projects with beneficiary feedback % 99 / 98 98 / 97 100% (Annual) indicator at design Operational Efficiency and Responsiveness 9 Disbursement ratio % 19.2 / 20.4 19.1 / 20.8 20% (Annual) 10 Proactivity Index % 79.7 / 75 82.1 / 81.6 80% 11 Client feedback on WBG on Average rating 6.6 / 6.95 7.1 / 7.0 7 responsiveness and staff accessibility scale: 1–10 12 Client feedback on WBG on Average rating 7.0 / 7.6 7.8 / 7.7 8 collaboration with other donors scale: 1–10 Financial Sustainability and Budget Efficiency 13 IDA Budget Anchor % 81 / - 74 / - <=100 14 Bank budget to Portfolio Volume $ million 11 / - 9/- Monitored Ratio (per $ billion under supervision) Average cost of IDA supervision $ thousand 203 / 195 207 / 205 Monitored 15 projects (implementation support) Implementation of IDA Special Themes and Cross-Cutting Issues Jobs and Economic Transformation Share of IDA19 CPFs which reflect % 100 (FY20) / - 100 (FY22) /- 100%* at least one of the following four key Original value: principles underpinning economic Monitored transformation: • Sectoral productivity 16 • Value chain expansion • Increased productive capital stock or investment in energy, transport, manu- facturing or services • Export sector output/value added; trade facilitation Total private mobilization of WBG- $ billion 18.82 / 4.85 7.92 / 3.10 Monitored supported operations/transactions in IDA countries. Total direct private mobilization $ billion 8.37 / 2.06 3.02 / 1.00 Monitored 17 of WBG-supported operations/ transactions in IDA countries. Total indirect private mobilization $ billion NA 4.91 / 2.10 Monitored of WBG-supported operations/ transactions in IDA countries. 73 IDA19 Results Measurement System TIER 3: IDA ORGANIZATIONAL AND OPERATIONAL EFFECTIVENESS (continued) Benchmark value Reported Re- Expected Unit of No. Indicator (as of end FY20) sults (FY22) Range/Value Measure All IDA/FCS All IDA/FCS (end of FY22) Implementation of IDA Special Themes and Cross-Cutting Issues Gender and Development  Percentage of IDA-supported % 62 / 63 93 / 96 60% projects that demonstrate a results 18 chain by linking gender gaps identified in analysis to specific actions that are tracked in the results framework (%) Number of IDA-supported operations Number 38 / 15 1143 / 38 Monitored 19 that address and respond to gender- based violence (number) Climate Change Share of climate co-benefits over % 31 / - 374 / 41 30% 20 total commitments in IDA-supported operations (%) Share of adaptation co-benefits over % - 595 / 55 50% 21 total climate co-benefits in IDA- supported operations (%) IDA financing commitments with ($ billion) 2.5 / 0.5 2.2 / 0.7 3-5 billion 22 disaster risk management co-benefits (FY18–20 average) (FY20–22 ($ billion, 3-year average) average) Fragility, Conflict and Violence (FCV) 23 Facetime Index in FCS Index / (# of 100 / (213,808) 25 / (171,183) Monitored days) Governance and Institutions Number of IDA countries with Number of - 23 / 12 15 countries the lowest Human Capital Index countries 24 (HCI) supported to improve the sustainability of human capital financing (as per G&I Policy Commitment #5) Number of countries supported by Number of - 14 completed 12 countries* 25 IDA to take IFF-related actions (as per countries Original value: G&I Policy Commitment #8) 20 countries Disability  Share of IDA IPF operations that % - 28.1 / 22.4 Monitored 26 applied the concept of universal access at design (% of approved IDA IPF in FY). 3 The value for this indicator was previously reported as 84 in IDA19: Implementation and Delivery, due to a data reporting error. It has been updated to reflect the correct value. 4 The value for this indicator was previously reported as 36 percent in IDA19: Implementation and Delivery. It has been updated to include four operations that were approved in July FY23 but that were financed by IDA19. 5 The value for this indicator was previously reported as 58 percent in IDA19: Implementation and Delivery. It has been updated to include four operations that were approved in July FY23 but that were financed by IDA19 financing. 74 IDA19 Policy Commitments APPENDIX B. IDA19 Policy Commitments This appendix presents the 44 policy commitments agreed under IDA19’s five Special Themes, the targets under each PC, and the final status as to what was achieved during the cycle. Targets for 15 of the 44 PCs were adjusted to reflect the decision to compress the IDA19 cycle from three to two years. The detailed table of PCs indicates those targets that were adjusted with an asterisk (*) and shows both the adjusted target and, in italics, the original target value. In the final assessment, IDA19 met 35 PC targets. A majority of these, 26, actually exceeded targets. Nine PCs (four under the JET Special Theme, one each under the Climate Change and FCV Special Themes, and three under Governance and Institutions) made progress but did not reach targets. Note that in the detailed table that follows, final tallies for six PCs have shifted marginally from the preliminary results reported in the October 2022 IDA19 Implementation and Delivery report. In four cases, the shifts in the final tally did not affect overall PC achievement. In one case, a PC shifted from met to not met (Governance and Institutions PC 3, related to domestic resource mobilization for countries with low tax to GDP ratios). In a second case (Governance and Institutions PC 12, related to supporting statistical capacity building), the final tally shifted the PC from “met” to “exceeded” target. Table B.1. Delivery of IDA19 Policy Commitments 3-year Targets Revised Targets Total Exceeded targets 17 9 25 Met targets 8 1 10 Did not meet targets 5 4 9 IDA19 Policy Commitments and Targets JOBS AND ECONOMIC TRANSFORMATION Policy Commitment Target6 Status 1. The World Bank Group will undertake interventions 10–15 Ten countries were supported: Côte d’Ivoire; in 10–15 countries to help them address bottlenecks Ethiopia; Ghana; Haiti; Kenya; Liberia; in sectors with high potential for private sector-led Mozambique; Nepal; Rwanda; Senegal job creation and economic transformation, which will be country specific and could include sectors such as agribusiness, manufacturing, and others. Proposed WBG actions will be grounded in diagnostics, such as the Country Private Sector Diagnostics findings and jobs diagnostics and selected in agreement with country authorities. 2. At least 66 percent of agriculture and agribusiness 58 Fifty-six percent of agriculture and agribusiness projects in IDA countries include support for participation percent* projects included support for participation in in value chains with high potential for growth and jobs Original value chains with a high potential for growth and creation, through connecting producers to markets, value: 66 jobs creation. technical assistance for meeting international standards percent The rapid spread of the COVID-19 pandemic and regulations, adoption of modern technology, increased global food insecurity, and the supporting logistics and reducing trade costs. prevalence of locusts in several IDA countries led them to shift their focus from mid- to long-term development agendas to more immediate responses. As a result, the target for this policy commitment was marginally missed. 6 Targets marked with * were adjusted at the IDA19 MTR in light of shifts in client needs, pandemic related restrictions on mobility, and the shortening of the IDA19 implementation period to two years. 75 IDA19 Policy Commitments JOBS AND ECONOMIC TRANSFORMATION (continued) Policy Commitment Target6 Status 3. IDA will support at least 15 IDA countries to develop 15 Fourteen IDA countries were supported through their primary and secondary cities through an integrated 18 approved projects. Support was provided to: package of support to deliver sustainable, inclusive, Democratic Republic of Congo; Djibouti; Kyrgyz and productive cities with a focus on JET, including Republic; Mauritania; Mozambique; Nepal; through climate-smart development, strengthening Niger; Pakistan; Rwanda; Sierra Leone; Tanzania; urban land management, and development of enabling Uganda; Uzbekistan; Vanuatu infrastructure for job creation. 4. IDA will support 10 IDA countries in the development 10 Twenty-four countries were supported: and modernization of regional infrastructure (e.g., power, Afghanistan; Bangladesh; Burkina Faso; transportation) and cross-border policy reforms with high Cameroon; Côte d’Ivoire; Democratic Republic potential for export promotion, increased productivity, of Congo; Djibouti; Ethiopia; Guinea; Kenya; Lao and labor mobility. PDR; Liberia; Malawi; Mali; Mauritania; Nepal; Niger; Pakistan; Senegal; Sierra Leone; Tajikistan; Tanzania; Togo; Uzbekistan 5. To help close the digital infrastructure gap, IDA will 18* Seventeen countries, of which 13 in Africa, were support 25 IDA countries to double their broadband Original supported: Burundi; Cabo Verde; Cameroon; penetration (16 on the African continent), including eight value: 25 Djibouti; Ethiopia; Ghana; Haiti; Maldives; in landlocked countries, by 2023. Marshall Islands; Mozambique; Nepal; Niger; Rwanda; Sao Tome and Principe; Tanzania; Togo; Uganda. Ten of these were land- or water-locked. The slight variance against the target was caused by some operations being postponed to IDA20 as a result of COVID-19. 6. IFC will aim to increase the share of its commitments 10-15 The share of IFC commitments in FCS-IDA17 and in FCS-IDA17 and LIC-IDA17 countries, reaching 10–15 percent LIC-IDA17 countries reached 10 percent. percent of its own-account commitments on average during the IDA19 cycle. Such commitment is conditional on the approval of the IFC’s resolutions for the capital increase and on having a significant portion of the new shares offered to shareholders being subscribed to. 7. Fifty percent of entrepreneurship and MSME projects 50 percent Sixty-three percent of projects incorporated will incorporate digital financial services and/or digital digital financial services and/or digital entrepreneurship elements, and ensure they address entrepreneurship elements. Support was particular constraints facing women and people with provided to Burkina Faso; Cabo Verde; Côte disabilities. d’Ivoire; Ethiopia; The Gambia; Ghana; Guinea; Lesotho; Madagascar; Malawi; Mali; Mozambique; Nepal; Rwanda; Senegal; Somalia 8. IDA will support at least 15 IDA countries, including at 10 Twenty-one projects were supported in least 12 of those among the 30 with the lowest Human (including 14 countries: Bangladesh; Benin; Burundi; Capital Index, with programs or policies to improve skills 8 of those Cameroon; Côte d’Ivoire; Ethiopia; Liberia; and employability toward more and higher-quality jobs, among the Malawi; Mauritania; Nigeria; Pakistan; Sierra considering the differential constraints facing young 30 with Leone; Somalia; Tanzania women and men, and people with disabilities. lowest HCI scores)* Original values: 15/12 9. IDA will embed a JET focus in all IDA country 100 A JET focus was embedded in all IDA19 country programs and the design of operations as appropriate, percent programs, including for Bangladesh; Chad; informed by diagnostics such as Systematic Country Guyana; Haiti; Honduras; Kenya; Lesotho; Diagnostics (SCDs) and CPSDs, and reflected in all new Maldives; Mozambique; Pakistan; São Tomé and IDA Country Partnership Frameworks and Performance Principe; Uganda and Learning Reviews (PLRs), including enhanced use of JET results indicators. Where relevant, IDA country programs and design of operations will be informed by migration diagnostics. 76 IDA19 Policy Commitments JOBS AND ECONOMIC TRANSFORMATION (continued) Policy Commitment Target6 Status 10. Under country government leadership, IDA will 10 IDA participated in country platforms in 14 actively participate in country platforms to collaborate countries: Benin; Djibouti; Honduras; Kenya; and coordinate with partners and stakeholders (including Kiribati; Lesotho; Liberia; Samoa; Sierra Leone; Multilateral Development Banks, development finance Solomon Islands; Tonga; Tuvalu; Uzbekistan; institutions, bilaterals, and the private sector, etc.) in at Zambia least 10 IDA countries toward developing a coherent vision, and a set of actions for JET, and mobilization of private finance. 11. All SCDs of IDA countries at moderate or high risk 100 All applicable SCDs addressed sustainable of debt distress will address the country’s approach for percent financing, including for Chad; Côte d’Ivoire; sustainably financing its development. Guyana; Haiti; Kenya; Lao PDR; Lesotho; Madagascar; Maldives; Mali; Mozambique; São Tomé and Principe; Togo; Uganda 12. IDA will conduct 20 pilots in ‘economic 20 Seventeen pilots were conducted in twelve transformation IDA projects’ to estimate indirect and/or countries: Bangladesh; Ethiopia; Kenya; Kiribati; induced jobs. The IFC will track direct jobs and estimates Lesotho; Mali; Rwanda; Senegal; Tanzania; of indirect jobs associated with all IFC Private Sector Tonga; Uganda; Uzbekistan Window investments. Where feasible, jobs reporting will While 28 pilots were initiated, several were be disaggregated by the poorest quintile, gender, FCS, delayed or canceled due to data collection disability, and youth. delays or suspension of project components due to COVID-19, or due to inadequacy of data or other information required as an input to standard models, or procurement delays or contractor performance issues. 13. IDA will work with regional institutions on capacity 3 Four regional institutions were supported, building and skills in addition to establishing strategic including COWAS (Regional Electricity Access partnerships with at least three Regional Economic and BEST Project); COMESA (Great Lakes Trade Communities to promote regional markets and develop Facilitation and Integration Project); IGAD regional value chains. (De-risking, Inclusion, and Value Enhancement of Pastoral Economies); and (Additional Financing of ACE II Project) 77 IDA19 Policy Commitments GENDER AND DEVELOPMENT Policy Commitment Target7 Status 1. IDA19 financing operations will support 10* Eleven countries were supported: Burundi; Central African women’s empowerment, including through Original Republic; Chad; Lesotho; Niger; Pakistan; Rwanda; Sierra increased access to quality reproductive, value: 15 Leone; Uganda; Yemen; Zambia adolescent, and primary health care in at least 15 of the 30 countries with the lowest HCI. 2. At least 60 percent of IDA19 financing 50 Sixty-eight percent of applicable projects supported operations for digital skills development percent* women’s access to higher productivity jobs, including will support women’s access to higher operations in Cabo Verde; Cameroon; Djibouti; Ethiopia; productivity jobs, including online work. Original Haiti; Marshall Islands; Mongolia; Mozambique; Nepal; value: 60 Niger; Rwanda; Tanzania; Uganda percent 3. At least 30 percent of IDA19 infrastructure 30 percent Seventy percent of applicable operations included actions to operations (transport, energy, and water) create employment opportunities for women. will include actions to create employment Support was provided to Afghanistan; Bangladesh; Benin; opportunities for women in medium and high Burkina Faso; Cabo Verde; Cameroon; Central African skilled jobs in these sectors. Republic; Chad; Comoros; Democratic Republic of Congo; Djibouti; Ethiopia; Guinea-Bissau; Haiti; Kenya; Kiribati; Kyrgyz Republic; Liberia; Madagascar; Malawi; Maldives; Federated States of Micronesia; Moldova; Mongolia; Mozambique; Nepal; Niger; Nigeria; Pakistan; Papua New Guinea; Rwanda; Samoa; Senegal; Sierra Leone; Solomon Islands; Somalia; St. Lucia; Tajikistan; Tanzania; Timor-Leste; Tonga; Tuvalu; Uganda; Uzbekistan; Vanuatu; Yemen. 4. All IDA19 financing operations for Digital 100 All applicable operations supported women’s increased Development will support women’s increased percent access to and usage of digital services. Support was access to and usage of digital services. provided to Burundi; Cabo Verde; Cameroon; Djibouti; Ethiopia; Ghana; Haiti; Kiribati; Maldives; Marshall Islands; Mongolia; Mozambique; Nepal; Niger; Rwanda; São Tomé and Principe; Tanzania; Togo; Uganda 5. At least 50 percent of IDA19 operations 50 percent Eighty-one percent of applicable land operations included with land activities in (i) land administration, specific actions to strengthen women’s land rights. Support (ii) post-disaster reconstruction and resilient was provided to Burkina Faso; Democratic Republic of recovery, and (iii) urban development will Congo; Kenya; Lao PDR; Mozambique; Pakistan; Senegal; include specific actions to strengthen Sierra Leone; Tanzania; Vanuatu women’s land rights. 6. Support at least five IDA countries to invest 5 health Five healthcare operations and five education operations in GBV prevention and response, delivering care were supported in Burkina Faso; Cameroon; Kenya; safe, quality, inclusive health care and other operations Mozambique; Nigeria; São Tomé and Principe; Solomon services through health systems, and five +5 Islands; Togo; Uganda; Zambia countries to implement GBV prevention education and response protocols as part of safe and operations inclusive schools. 7 Targets marked with * were adjusted at the IDA19 MTR in light of shifts in client needs, pandemic related restrictions on mobility, and the shortening of the IDA19 implementation period to two years. 78 IDA19 Policy Commitments CLIMATE CHANGE Policy Commitment Target8 Status 1. IDA’s climate co-benefits share of total 30 Share of climate co-benefits reached 34 percent ($25.4 commitments will increase to at least 30 percent; billion out of $75 billion) on average over FY21–FY22,9 with percent on average over FY21–23, and 50 percent adaptation above parity at 60 percent at least half of these co-benefits support for FY21: 31 percent ($11.1 billion out of $36.1 billion), with adaptation actions. (Note that the adjusted adaptation adaptation above parity at 61 percent ($6.8 billion out of policy commitment considered the average $11.1 billion). for FY21-22.) FY22: 37 percent ($14.3 billion out of $38.9 billion), with adaptation above parity at 59 percent ($8.5 billion out of $14.3 billion). 2. All IDA operations with more than 20 90 Ninety-eight percent (260 out of 264 operations)10 percent of climate co-benefits will incorporate percent* incorporate at least one climate-related results indicator. at least one climate-related results indicator Original This included operations in Afghanistan; Bangladesh; Benin; to increase the focus on climate outcomes. value: all Bhutan; Burkina Faso; Burundi; Cabo Verde; Cambodia; operations Cameroon; Central African Republic; Chad; Comoros; Democratic Republic of Congo; Côte d’Ivoire; Djibouti; Ethiopia; Fiji; The Gambia; Ghana; Grenada; Guinea; Guyana; Haiti; Honduras; Kenya; Kiribati; Lao PDR; Lesotho; Liberia; Madagascar; Malawi; Maldives; Mali; Marshall Islands; Mauritania; Federated States of Micronesia; Mozambique; Nepal; Nicaragua; Niger; Nigeria; Pakistan; Papua New Guinea; Rwanda; Samoa; Senegal; São Tomé and Principe; Sierra Leone; Solomon Islands; Somalia; South Sudan; St. Lucia; St. Vincent and the Grenadines; Sudan; Tajikistan; Tanzania; Timor-Leste; Togo; Tonga; Tuvalu; Uganda; Uzbekistan; Vanuatu; Yemen, Zambia 3. Develop new resilience metrics designed 20 Pilots were undertaken in 20 projects in 21 countries11: to give increased incentives for more Afghanistan; Côte d’Ivoire; The Gambia; Ghana; Grenada; effective climate adaptation actions, including Honduras; Lao PDR; Liberia; Mali; Mauritania; Nepal; Niger; enhanced disaster resilience of infrastructure Pakistan; Senegal; Sierra Leone; Somalia; Tajikistan; Timor- developments, and pilot them in 20 IDA Leste; Tonga; Uzbekistan; Yemen operations. 4. Support at least 25 IDA countries to reduce 35* Forty-seven countries were supported: Afghanistan; the risks of climate shocks on poverty and Original Bangladesh; Benin; Burundi; Cameroon; Central African human capital outcomes by supporting value: 25 Republic; Chad; Comoros; Democratic Republic of Congo; programs that incorporate Adaptive Social Republic of Congo; Côte d’Ivoire; Djibouti; Ethiopia; Fiji; The Protection into national systems or reduce Gambia; Ghana; Guinea-Bissau; Guyana; Haiti; Honduras; climate threats to health. Kiribati; Kosovo; Lesotho; Liberia; Madagascar; Malawi; Maldives; Mauritania; Mozambique; Nicaragua; Niger; Nigeria; Pakistan; Papua New Guinea; Rwanda; São Tomé and Principe; Senegal; Sierra Leone; Solomon Islands; Somalia; South Sudan; Sudan; Tajikistan; Togo; Tuvalu; Yemen; Zambia 8 Targets marked with * were adjusted at the IDA19 MTR in light of shifts in client needs, pandemic related restrictions on mobility, and the shortening of the IDA19 implementation period to two years. 9 Note that the final calculation of co-benefits has been adjusted from the preliminary estimate of 33 presented in IDA19: Implementation and Delivery in October 2022, to include four operations that were approved in FY23 but that were financed in IDA19. The overall status has not changed, PC performance exceeded the target. 10 Note that the final calculation of percent of operations with climate co-benefits has been adjusted from the preliminary estimate of 99 presented in IDA19: Implementation and Delivery in October 2022, to include four operations that were approved in FY23 but that were financed in IDA19. The overall status has not changed, PC performance exceeded the target. 11 Note that the tally has been adjusted from the preliminary estimate of 22 countries supported presented in IDA19: Implementation and Delivery in October 2022. The status has changed, PC performance met the target but does not exceed it, as originally estimated. 79 IDA19 Policy Commitments CLIMATE CHANGE (continued) Policy Commitment Target8 Status 5. Support at least 15 IDA countries to 15/ 100 Twenty-four countries were supported in updating and systematically implement and update national percent implementing their NDCs: Benin; Burkina Faso; Cambodia; climate-related action plans including Republic of Congo; Dominica; Ethiopia; Grenada; Guinea; Nationally Determined Contributions (NDCs), Honduras; Lao PDR; Marshall Islands; Mozambique; Rwanda; in cooperation with the NDC Partnership; St. Lucia; St. Vincent and the Grenadines; Tajikistan; Uganda; for all IDA countries where appropriate, set Zambia; Zimbabwe; Cote d’Ivoire, Benin, and Togo; Malawi; climate-related or NDC-based objectives Ghana; Pakistan. and/or results indicators in the CPFs. Twelve (100 percent) Board-approved IDA CPFs included climate-related or NDC-based objective and/or results indicators: Bhutan; Central African Republic; Comoros; Democratic Republic of Congo; Djibouti; Fiji; The Gambia; Ghana; Malawi; Nigeria; Rwanda, Organisation of Eastern Caribbean States (including 4 IDA countries). 6. Support at least 15 IDA countries to 15 Twenty countries were supported: Burkina Faso; Burundi; implement and/or update their National Republic of Congo; Côte d’Ivoire; Dominica; Ethiopia; Biodiversity Strategies and Action Plans Ghana; Grenada; Guinea; Haiti; Lao PDR; Madagascar; (NBSAPs) covering terrestrial and marine Mozambique; Nepal; Nigeria; Solomon Islands; St. Lucia; St. biodiversity or similar national action plans Vincent and the Grenadines; Tajikistan; Uzbekistan through new IDA-supported activities during IDA19. 7. Facilitate further penetration of renewable 2GWh/ A total of 2.1 GWh of battery storage and close to 4 GW of energy in IDA countries in the context of 5GW* renewable energy was supported. energy access, affordability, and security, by Original mobilizing concessional climate finance and values: public and private investments for 5 gigawatt Both targets were highly ambitious, but performance was 5/10 challenged by the COVID-19 crisis and the associated trends hours (GWh) of battery storage, and providing direct, indirect, and enabling policy support toward pandemic-related investment in client governments. for generation, integration, and for enabling Energy systems transition remains critical for low-carbon and infrastructure for at least 10 gigawatts (GW) climate resilient development and will continue to be an area of renewable energy in IDA countries. This of focus under the IDA20 Climate Change special theme. support would cover all kinds of on-grid, off- grid and distributed renewable energy. 80 IDA19 Policy Commitments FRAGILITY, CONFLICT AND VIOLENCE Policy Commitment Target12 Status 1. All CPFs, Country Engagement Notes (CENs) and 100 All CPFs, CENs and PLRs in IDA FCS complied with PLRs in IDA FCS will outline how the WBG program, percent the policy commitment. in collaboration with relevant partners, addresses FCV drivers and sources of resilience, based on diagnostics such as Risk and Resilience Assessments or other FCV assessments. Each RRA/fragility assessment will analyze FCV drivers and sources of resilience and contain operationally relevant recommendations. 2. Develop and implement at least three regional 3 Thirteen regional IDA operations, informed by programs (including in the Sahel, Lake Chad region, regional RRAs and focusing on mitigating key fragility and the Horn of Africa), which are informed by and security risks, were approved. These operations regional RRAs and focus on mitigating key fragility involved a total of 16 countries in the Sahel, Lake and security risks to promote engagement at the Chad, and the Horn of Africa. For some of these security-development nexus. operations, Regional Organizations also benefitted from IDA financing. 3. At least 20 IDA FCS country portfolios will support 10* Fourteen country portfolios were supported: improvements in social sector service delivery (i.e., Original Afghanistan; Burundi; Chad; Republic of Congo; health, education, and social protection), with a value: 20 Haiti; Lao PDR; Liberia; Marshall Islands; Federated focus on addressing the differential constraints faced States of Micronesia; Mozambique; Nigeria; Solomon by men and women, boys, and girls, and by people Islands; Somalia; Yemen with disabilities. 4. By the IDA19 Mid-Term Review, conduct a 1 A systematic review of refugee policy was conducted, systematic review of refugee policy and institutional in close cooperation and partnership with UNHCR, environments in countries eligible for the Window and based on the Refugee Policy Review Framework. for Host Communities and Refugees since their initial The review covered all Refugee Sub-Window/WHR eligibility, to inform further support for the creation eligible countries from initial eligibility in IDA18. of socio-economic development opportunities for refugee and host communities in these countries. 5. Support building client capacity in 50 percent of 33 Forty-four percent of IDA FCS countries were IDA FCS countries to use field-appropriate digital percent* supported, including Afghanistan; Burkina Faso; tools for collection and analysis of geo-tagged Original Cameroon; Central African Republic; Chad; data; and apply this technology to enhance project value: 50 Democratic Republic of Congo; Guinea; Guinea- implementation and coordination. percent Bissau; Haiti; Mali; Mozambique; Niger; Nigeria; Sudan 6. Operationalize the FCV Envelope to provide 100* 738 World Bank GE+, Open/Term/ETC staff, were enhanced and tailored support to IDA FCS. Also, Original working in IDA FCS and nearby locations against IDA will deploy at least 150 more GE+ staff, value: 150 a baseline of 650; a net footprint increase of 88 including extended term consultants, to IDA FCS staff. The main reason for this lower number is locations and nearby locations to serve IDA FCS. because staff transitioning out of countries such as in Afghanistan and Myanmar due to in-country conflicts (a decrease of 16 staff in Afghanistan, and 14 in Myanmar). The FCV Envelope provided $5.4 billion in additional PBA top-ups to 13 countries. Seven PRA eligible countries (Burkina Faso; Cameroon; Chad; Democratic Republic of Congo; Mali; Mozambique; and Niger) received an additional $3.3 billion; four TAA eligible countries (Central African Republic; Somalia; Sudan; and The Gambia) received an additional $1.8 billion; and two RECA eligible countries (South Sudan and Yemen) received an additional $345 million. 12 Targets marked with * were adjusted at the IDA19 MTR in light of shifts in client needs, pandemic related restrictions on mobility, and the shortening of the IDA19 implementation period to two years. 81 IDA19 Policy Commitments GOVERNANCE AND INSTITUTIONS Policy Commitment Target13 Status 1. Support at least 25 IDA countries 25 Thirty-one countries were supported:14 Benin; Bhutan; Burkina Faso; to implement an integrated and Cameroon; Central African Republic; Chad; Democratic Republic programmatic approach to enhance of Congo; Republic of Congo; Côte d’Ivoire; The Gambia; Ghana; debt transparency through increased Grenada; Guinea-Bissau; Guyana; Honduras; Kenya; Lesotho; coverage of public debt in Debt Liberia; Mali; Federated States of Micronesia; Mozambique; Nepal; Sustainability Analysis and/or Nicaragua; Pakistan; Rwanda; Senegal; Somalia; St. Lucia; St. Vincent supporting debt transparency reforms, and the Grenadines; Tajikistan; Uganda including requirements for debt Coordinated efforts under the SDFP, the joint WB/IMF Multipronged reporting to increase transparency. Approach and WB operations led to substantial improvements in debt transparency, which resulted in more accurate debt sustainability analysis through increased debt data coverage. Significant technical assistance and training were provided jointly by the Bank and IMF, including through funding from the Debt Management Facility trust fund. Despite improvements, most countries do not yet comply with best practices on the nine dimensions of debt reporting tracked by the Bank’s debt reporting heatmap. Burkina Faso is the first and only country to report on its public debt in line with best practices in all aspects. 2. Support at least 25 IDA countries 25 Twenty-seven countries were supported.15 Several countries to bolster fiscal risk assessments and started publishing fiscal risk statements, improved their coverage debt management capacity through and implemented assessments of the most relevant risks they a scale-up of fiscal risks monitoring face and published the results in reports. Progress on publishing and/or implementation of debt borrowing plans and issuance calendars were more contained, given management strategies. uncertainties around gross financing needs related to the COVID-19 pandemic. Countries supported: Benin; Bhutan; Burkina Faso; Cabo Verde; Cameroon; Côte d’Ivoire; Fiji, Ghana; Grenada; Guyana; Honduras; Kenya; Kosovo; Kyrgyz Republic; Madagascar; Malawi; Maldives; Mauritania; Mozambique; Nicaragua; Niger; Papua New Guinea; Rwanda; Samoa; Senegal; Tajikistan; Togo 3. Support the implementation of 32 Target was not met.16 IDA exceeded the number of countries country programs which support the targeted for support and supported improvements in tax-to-GDP efforts of those IDA countries with tax ratios, but improvements fell short of the planned target. revenues persistently below 15 percent Despite the significant drop in tax-to-GDP ratios during much of of GDP to achieve an unweighted the cycle, revenue collection is expected to recover in IDA/Blend average increase in tax-to-GDP countries that previously had tax-to-GDP ratios persistently below ratios of one percentage point over 15%, with support from IDA. It is estimated that these countries will the three-year IDA cycle, as part of have improved their unweighted tax-to-GDP ratios by approximately collective efforts with partners. 0.33 of a percentage point over the IDA19 cycle (2019–2022). This average increase, however, falls short of the target of one percentage point that was planned for a three-year cycle. Thirty-six countries (100 percent) with tax revenues persistently below 15 percent of GDP were supported: Afghanistan; Bangladesh; Benin; Burkina Faso; Burundi; Cameroon; Central Africa Republic; Chad; Democratic Republic of Congo; Côte d’Ivoire; Djibouti; Ethiopia; The Gambia; Ghana; Guinea; Kenya; Lao PDR; Liberia; Madagascar; Mali; Mauritania; Myanmar; Nigeria; Niger; Pakistan; Papua New Guinea; São Tomé and Principe; Sierra Leone; Somalia; South Sudan; Sudan; Tanzania; Timor-Leste; Togo; Uganda; Zambia 13 Targets marked with * were adjusted at the IDA19 MTR in light of shifts in client needs, pandemic related restrictions on mobility, and the shortening of the IDA19 implementation period to two years. 14 Note that the tally has been adjusted from the preliminary estimate of 35 countries supported presented in IDA19: Implementation and Delivery in October 2022. Six countries were removed: Burundi, Dominica, Lao PDR, Niger, Sierra Leone, Tuvalu were counted in the preliminary tally but not retained in the final count. Two countries, Burkina Faso and Uganda, were added. The overall status has not changed, PC performance exceeded the target. 15 Note that the tally has been adjusted from the preliminary estimate of 30 countries supported presented in IDA19: Implementation and Delivery in October 2022. Three countries were removed: Dominica, Marshall Islands and Sao Tome and Principe. The overall status has not changed, PC performance exceeded the target. 16 The overall status of this PC has been changed from the preliminary assessment in IDA19: Implementation and Delivery to not met. Although IDA exceeded the targeted number of countries to receive support, and supported countries ended the cycle with an improved tax-to-GDP ratio, the improvement fell somewhat short of the initial target. 82 IDA19 Policy Commitments GOVERNANCE AND INSTITUTIONS (continued) Policy Commitment Target13 Status 4. Support at least 20 countries to 20 Nineteen countries were supported: Bangladesh; Benin; Cabo identify the governance constraints Verde; Cambodia; Democratic Republic of Congo; Côte d’Ivoire; to the development, financing, and Djibouti; The Gambia; Guinea; Guinea-Bissau; Honduras; Lesotho; delivery of quality infrastructure Nigeria; Papua New Guinea; Senegal; Sierra Leone; Tanzania; Togo; investments, with particular Zimbabwe attention to project preparation, procurement, environmental and social considerations, and integrity, to inform the adoption of policies and/or regulations for enhanced infrastructure governance in a majority of these. 5. Support at least 15 IDA countries 15 Twenty-three countries were supported: Afghanistan; Burkina Faso; with the lowest HCI to improve Burundi; Cameroon; Central African Republic; Comoros; Democratic sustainability of human capital Republic of Congo; Ethiopia; Guinea; Liberia; Madagascar; Malawi; financing, including a focus on Mali; Mauritania; Mozambique; Niger; Pakistan; Rwanda; Sierra reaching universal health coverage Leona; Sudan; Tanzania; Uganda; Zambia and good learning outcomes for all, through: (i) improving the efficiency of public expenditures, and (ii) more effectively aligning expenditures with domestic financing and external resources in a sustainable manner. 6. Support at least 12 IDA countries to 8* Thirteen countries were supported:17 Cabo Verde; Central African adopt universally accessible5 GovTech Original Republic; Democratic Republic of Congo; Ethiopia; Gabon; Ghana; solutions. value: Haiti; Kiribati; Madagascar; Mozambique; Rwanda; Somalia; Uganda 12 7. Support at least 25 IDA countries 25 Thirty-seven countries were supported: Afghanistan; Bangladesh; to implement pandemic preparedness Benin; Cameroon; Chad; Comoros; Democratic Republic of Congo; plans through interventions (including Côte d’Ivoire; Ethiopia; Ghana; The Gambia; Guinea; Guyana; strengthening institutional capacity, Honduras; Kenya; Lao PDR; Liberia; Malawi; Maldives; Mauritania; technical assistance, lending, and Madagascar; Mozambique; Nepal; Nicaragua; Pakistan; Niger; investment). Nigeria; Rwanda; São Tomé and Principe; Senegal; Sierra Leone; South Sudan; Sudan; Togo; Uganda; Yemen; Zambia 8. Support at least five countries to 2/12* Tax evasion modules were implemented in Kenya and Uganda, and conduct comprehensive Illicit Financial Original both countries are in the process of completing the self-assessment Flows assessments and prepare action values: and populating the tool. plans. Also support at least 20 IDA 5/20 Fourteen countries were supported to take IFF-related policy actions, countries to take IFF-related policy including: Cabo Verde; Cameroon; Democratic Republic of Congo; actions, such as increasing access to Côte d’Ivoire; Djibouti; Ethiopia; The Gambia; Liberia; Madagascar; and awareness of beneficial ownership Mauritania; Mozambique; Sierra Leone; Somalia; Zimbabwe information and/or adopting automatic exchange of information to reduce tax evasion. 9. Support at least 50 percent of IDA 40 Fifty-seven percent of IDA countries were supported: Afghanistan; countries to implement e-procurement percent* Bangladesh; Benin; Bhutan; Burkina Faso; Burundi; Comoros; systems and conduct detailed Original Democratic Republic of Congo; Côte d’Ivoire; Djibouti; Dominica; procurement data analytics, in order to value: 50 Ethiopia; The Gambia.; Ghana; Grenada; Guinea; Haiti; Kenya; increase efficiency of public spending percent Kyrgyz Republic Lesotho; Liberia; Madagascar; Malawi; Mauritania; and mitigate corruption risks. Mozambique; Myanmar; Nepal; Nigeria; Pakistan; Rwanda; Senegal; Sierra Leone; South Sudan, St. Lucia; St. Vincent and the Grenadines; Sudan; Tajikistan; Togo; Uganda; Uzbekistan; Zambia; Zimbabwe 17 Note that the tally has been adjusted from the preliminary estimate of 15 countries supported presented in IDA19: Implementation and Delivery in October 2022. Two countries were removed: Sierra Leone and Togo. The overall status has not changed, PC performance exceeded the target. 83 IDA19 Policy Commitments GOVERNANCE AND INSTITUTIONS (continued) Policy Commitment Target13 Status 10. Support at least 50 percent of IDA 40 Forty percent of IDA countries were supported: Afghanistan; Benin; countries to establish and strengthen percent* Burkina Faso; Cambodia; Central African Republic; Chad; Democratic platforms for engaging with multiple Original Republic of Congo; Côte d’Ivoire; Ethiopia; Ghana; Guinea; stakeholders, including women as well value: 50 Kenya; Kyrgyz Republic; Liberia; Madagascar; Malawi; Mauritania as vulnerable groups, in policy making percent Mozambique; Myanmar; Nepal; Nigeria; Papua New Guinea; and implementation to enhance public Rwanda; Senegal; Sierra Leona; Solomon Islands; St. Lucia; Tajikistan; participation, accountability and Tanzania; Zambia responsiveness. 11. Support at least 95 percent of 95 Eighty-three percent of IDA FCSs were supported. The remaining IDA FCSs (with active portfolios) to percent active IDA FCS countries included Kiribati, Marshall Islands, establish and/or strengthen core Federated States of Micronesia, Timor-Leste, and Tuvalu all of which government functions to address FCV have a small number of projects, thus limiting opportunities for drivers. support in these areas. 12. Support 30 IDA countries, 30 Thirty-one countries were supported:18 Bangladesh; Burkina Faso; including those with ongoing statistical Burundi; Cabo Verde; Central African Republic; Chad; Comoros; operations, to support institutions and Democratic Republic of Congo; Republic of Congo; Côte d’Ivoire; build capacity to reduce gaps in the Kenya; Ghana; Grenada; Liberia; Kiribati; Madagascar; Mali; availability of core data for evidence- Mozambique; Niger; Rwanda; Sierra Leone; Somalia; South Sudan; based policy making, including St. Lucia; St. Vincent and the Grenadines; Tajikistan; Tanzania; Togo; disaggregation by sex and disability. Tonga; Uganda; Uzbekistan 18 Note that the tally has been increased from the preliminary estimate of 30 countries supported presented in IDA19: Implementation and Delivery in October 2022. One country was added: the Republic of Congo. 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