_n: 22971 WORLD BANK OPERATIONS EVALUATION DEPARTMENT SPRING 1999 NUMBER 177 Nongovernmental Organizations in W)Vorld Bank-Supported 0~~~~~~~~~~~~ Proj ects: A Review HEY ARE ON THE GROUND, REACHING POOR commu- nities and remote areas, identifying local needs, drawing in the marginalized, and providing services. In the last two decades, NGOs have been involved in a growing number of projects supported by the World Bank because of the experience they bring to emergency relief and participatory development. Since 1989, when the Bank adopted an Operational Directive to encourage staff and borrowers to involve NGOs in their activities, as many as half the projects ap- proved each year have had some provision for NGO involvement. But the quality and depth of this collaboration are uneven. A study by the Operations Evaluation Department (OED), B a c g 9 r O u n d with field work in Bolivia, Brazil, India, NGOs are typically entirely or largely in- Kenya, and Mali, found that strong NGO dependent of government, with humani- involvement can contribute to project suc- tarian rather than commercial objectives. cess. However, such involvement is not the The Bank defines them as private organi- norm, and many opportunities to benefit zations that pursue activities to relieve the poor are missed as a result. OED con- suffering, promote the interests of the cluded that it is time for the Bank and its poor, protect the environment, and stimu- partners to adopt a more effective approach late community development. Projects to the participation of NGOs in projects by supported by the Bank involve both na- exerting a positive influence on the environ- tional and international NGOs, which act ment in which NGOs operate, adopting as intermediaries to support work at the more flexible procedures, and strengthening grassroots level, as well as smaller com- the monitoring of NGO participation-in munity-based organizations (CBOs), short, ensuring that the Bank's guidelines which often include project beneficiaries are more closely followed. themselves. 2 World Bank Operations Evaluation Department The Bank does not lend directly to these organiza- keeping with the Bank's guidelines). But such good prac- tions, but encourages borrower governments to consult tice is not institutionalized. The successful involvement with and involve NGOs in the operations it supports. As of NGOs often depends on individual Bank or govern- of 1997, two-thirds of Bank-supported projects with pro- ment staff who understand the organizations and take di- visions for NGO involvement were in the agricultural, rect action. health, and social sectors, and 70 percent of these projects have been approved since 1990. The highest number of projects with provisions for NGO involve- TABLE 1: Outcome of NGO Involvement in ment is in Africa, followed by Asia and Latin America. Selected Bank-Supported Projects NGOs are far more likely to be involved in implemen- tation and maintenance than in design. In projects with All P Pos P provision for NGO participation in 1997, 73 percent were expected to involve national NGOs; 71 percent, Highly satisfactory 6 16 1 11 CBOs; and 15 percent, international NGOs. Satisfactory 12 32 5 56 The OED study was based on a desk review of Unsatisfactory 19 51 3 33 NGO involvement in Bank-supported projects, a survey Total 37 100 9 100 of task managers on the financing of NGOs, and an in- depth assessment of 37 projects in Bolivia, Brazil, India, Kenya, and Mali. The study focused on three central Further, the study found that the Bank does not tap questions: the talents of bilateral organizations, foundations, or 3 Do NGOs increase the effectiveness of Bank-sup- other potential partners that have developed deep under- ported projects? standing and knowledge of the NGO community * What supports-or hinders-successful NGO in- through long-term field experience. Contracting and con- volvement? sulting procedures are inflexible, and government fund- * Are there cases where NGO involvement is coun- ing of NGOs is slow and erratic, which frustrates the ef- terproductive? forts of small, non-profit groups. Involvement of NGOs is rarely monitored. Indeed, the review found that infor- Findings mation about NGO participation is often not kept in The study found that the claims of NGO involvement in project files, but in task managers' heads and in unoffi- project data exceed the reality. Bank appraisal docu- cial records. ments report only planned NGO involvement. Further- more, the term involvement is interpreted so broadly What fosters-and hinders-the involvement that it has little meaning. OED undertook an analysis of of NGOs the aggregate data on NGO involvement in Bank-sup- OED found that "several things have to be done well by ported projects but found it difficult to link participation all the partners" for projects involving NGOs to suc- of NGOs to outcomes, institutional development, or ceed. The main factors that encourage NGO involve- sustainability. In addition, the statistics do not accu- ment include providing a supportive environment for rately reflect the amount of funds supplied to NGOs. NGOs; building on their proven field experience; work- The task manager survey revealed that few projects ing with NGOs that are able and willing to grow in or- track these flows. As a result, the Bank cannot assess der to participate in large, Bank-supported projects; pro- NGO cost-effectiveness, nor can it compare projects that moting participation by screening and recruiting NGOs include NGOs with those that do not. skillfully and involving them early in the project; bring- Although NGOs make valuable contributions to ing beneficiaries into the project by encouraging NGOs projects, there are significant gaps between objectives to act as intermediaries; disbursing funds to organiza- and results. Of the 37 projects surveyed in depth, NGO tions smoothly and on time; monitoring and evaluating involvement was rated as unsatisfactory in 19 cases projects and results; and communicating effectively to (table 1). But 12 of the projects were judged to be satis- improve working relationships and solve problems. factory and 6 were rated as highly satisfactory. Many of At the same time, only a few things have to be done the better performers were under preparation or ap- badly for a partnership with an NGO to perform poorly proved since 1995, suggesting improved preparation and or fail. Hindrances include low ownership of programs implementation among more recent projects. Positive by borrowers unsympathetic to, or unsure of the need outcomes were seen when NGOs were involved early, for, NGOs; lack of familiarity among borrowers with chosen for their proven capacity and experience, and the NGO community; nonparticipation by NGOs, which treated as partners rather than as contractors (all in leads to weak local ownership; lack of critical details in Prcis 3 . the specifications for an NGO's role; poor channels of countable mechanisms for the transfer of funds to communication; provision of insufficient information to NGOs. NGOs about how projects will operate; overmanage- * Monitoring and Evaluation and Knowledge Man- ment of NGOs by the project implementing agencies; agement. The Bank and borrowers should ensure and overly complex procedures to hire and fund NGOs. that NGO participation can be monitored before OED suggested that there are times when NGOs projects are approved; provide incentives to make should not be involved in Bank projects. First, proce- such oversight simple and low in cost; encourage dures may be ill-adapted to NGO capacities. For in- joint evaluations between partners; and routinely stance, the sporadic flow of funds from governments can seek beneficiary views. Finally, the Bank should stretch an NGO's financial resources and put its pro- develop a new NGO database that compiles reli- grams at risk. Second, support for NGO involvement able country data on actions planned and taken, may not be sustained as expected through the life of a resources applied, and results achieved. project. Third, Bank-supported projects may negatively affect NGOs if they impose unrealistic expectations and FIGURE 1: The Environment as a Determinant timetables on processes such as participatory work with of Success of NGO Involvement communities. Recommendatlions Oucm Success can be achieved if the Bank ensures that its guidelines on NGOs are used more effectively. OED rec- 190% ommends the following: 80% * Partnersbips. The Bank and borrowers should de- 70% velop strategic partnerships with donors, founda- 60% tions, and others more experienced in working 50% with NGOs. 40% * Supportive Environments. The Bank should en- 30% courage governments to create an enabling envi- 20% ronment for NGOs through its policy dialogue 10% with borrowers and the promotion of good prac- Supportive Mixed unsupportive tice in country laws regulating NGOs. * Capacity Building. The Bank should improve its Environment for NGOs ability to support partnerships by helping NGOs c Satisfactory * Unsatisfactory in each country to understand the Bank and how it works and by recruiting country NGO special- Management response ists. It should help borrowers strengthen their ca- Bank Management agreed with the thrust of OED's con- pacity for partnerships with NGOs and explore clusions and recommendations, beginning with improv- the use of adaptable lending instruments. Re- ing the use of Good Practice 14.70, which offers guid- sources are needed to build NGO strengths be- ance on dealing with NGOs (replacing the earlier Op- yond actual projects: task teams should be trained erational Directive). Efforts are under way to learn to realistically assess NGO capacities and help from governments, donors, foundations, and others NGOs understand business practices. about collaboration with NGOs, to form strategic part- * Planning for NGO Involvement. To foster more nerships at the institutional level, and to improve sup- inclusive and participatory project preparation, port for NGOs among governments. In cooperation with the Bank should help borrowers establish a clear the Bank's NGO Unit, the Resident Missions and Re- rationale for NGO involvement; identify and re- gional Social Development Units (RSDUs) will have cruit NGO partners based on proven competence; greater roles in monitoring and in information dissemi- engage relevant NGOs early in the design of a nation. Management agreed that the rationale, rules, project; and include rules of partnership in the and mechanisms for financing NGO involvement should Project Implementation Plan. To avoid the inflex- be established early, but felt it would be burdensome to ibility and sporadic, unpredictable funding that single out the funding of NGOs for special monitoring. hamper small, non-profit partners, the Bank Management views the existing mechanisms for financ- should simplify business procedures; provide ing NGOs as adequate, although it will continue to ex- guidelines for reasonable costs for contracts with plore opportunities to improve business procedures and NGOs; and help borrowers use simple and ac- encourage flexibility. 4 World Bank Operations Evaluation Department While agreeing with most of the recommendations, Management pointed out that much of OED's review deals The Sodic Lands Reclamation Project, with older projects and thus does not fully reflect recent de- lUttar Pradesh, India: A Strong Partnership velopments in Bank-NGO collaboration. In the last two Among Government, NGOs, and CBOs years the Bank has increased its work with NGOs and has SINCE 1945, THE GOVERNMENT OF UTTAR designated NGO-specialist staff to improve collaboration Pradesh in Northern India has tried to reclaim 1.2 and dialogue among governments, NGOs, and the Bank. million hectares of farmland that has fallen prey to Outreach programs are being expanded to enhance NGO sodicity. This condition occurs when salt rises to the understanding of the Bank and its business practices. Man- surface because of overwatering by large irrigation agement agreed that the long-observed practice of identify- schemes, rendering the soil unproductive. But at- ing "projects with NGO involvement" through statements tempts to improve the dense, white, highly alkaline of intent at appraisal overstates actual involvement. The soil were unsuccessful, the result of a top-down ap- Bank is now strengthening monitoring by tracking projects proach in projects, little involvement of small, low- with intensive NGO involvement and putting more em- caste landowners, and poor project monitoring and phasis on field-level reviews. evaluation. In the 1980s, however, a local NGO, The Committee on Development Effectiveness (CODE) Sarvodaya Ashram, began to organize farmers to re- of the Bank's Board of Executive Directors agreed with claim their land. The success of this approach eventu- most of OED's recommendations and noted Management's ally led to the Sodic Lands Reclamation Project, constructive response to the study. The Committee stressed which was approved by the Bank in 1993. The project that the Bank should help borrowers understand and appre- builds directly on Sarvodaya Ashram's experience and ciate the value of NGO work in their countries and sup- works with CBOs and NGOs. port governments in developing better regulatory frame- Despite a relatively weak NGO movement in works for NGOs. The Committee emphasized the need to Uttar Pradesh and an unsupportive, even "hostile" en- change attitudes within the Bank to be more sympathetic vironment for government-NGO collaboration, the and willing to work with NGOs. project has an impressive record, helping farmers in some of the poorest regions of the state. The success- ful partnership of government and NGOs was sup- ported by the following factors: * Highly motivated project and NGO staff en- gaged in a continuous learning process * Participatory project management through a unit that mediates between the government and NGOs * Clearly defined roles and responsibilities for all actors * Regular and transparent information sharing among all involved parties * Professional, independent monitoring and evaluation. Precis Review or Report: "Nongovernmental Organizations in World Please address comments and inquiries to the Editor-in-Chief, Bank-Supported Projects: A Review," by Christopher Gibbs, Elizabeth Campbell-Page, tel: 1-202/458-5365, Claudia Fumo, and Thomas Kuby, ISBN No. 0-8213-4456-0, fax: 1-202/522-3125, e-mail: ecampbellpage@worldbank.org February 1999. Available from regional information service cen- Please address publication requests and inquiries to OED, ters and the World Bank InfoShop: tel: 1-202/458-4497, fax: 1-202/522-3200, 1-202/458-5454 e-mail: OED Help Desk@worldbank.org fax 1-202/522-1500 e-mail pic@worldbank.org. This and other OED publications can be found on the Internet, at http://www.worldbank.org/html/oed DISCLAIMER OED Prcis are produced by the Operations Evaluation Department, Partnerships and Knowledge (OEDPK) of the World Bank. The views here are those of the Operations Evaluation staff and should not be attributed to the World Bank or its affiliated organizations. OED Publications 1999 1998 Annual Review of Development Effectiveness Appreciation de l'efficacite du developpement: 1Uevaluation a la Banque mondiale et a la Soci&e financiere internationale Determinar la eficacia de las actividades de desarrollo: La evaluaci6 en el Banco Mundial y la Corporacion Financiera Internacional Lessons of Fiscal Adjustment Evaluation Capacity Development in Africa Nongovernmental Organizations in World Bank-Supported Projects: A Review Philippines: From Crisis to Opportunity Lessons from Urban Transport 1998 1997 Annual Review of Development Effectiveness Assessing Development Effectiveness: Evaluation in the World Bank and the International Finance Corporation Evaluation and Development: The Institutional Dimension (Transaction Publishers) Financial Sector Reform: A Review of World Bank Assistance India: The Dairy Revolution Rebuilding the Mozambique Economy: Assessment of a Development Partnership Public Sector Performance-The Critical Role of Evaluation The World Bank's Experience with Post-Conflict Reconstruction 1997 1995 Evaluation Results Agricultural Extension and Research: Achievements and Problems in National Systems Fiscal Management in Adjustment Lending Mainstreaming Gender in World Bank Lending: An Update Paddy Irrigation and Water Management in Southeast Asia Poland Country Assistance Review: Partnership in a Transition Economy Reforming Agriculture: The World Bank Goes to Market Zambia Country Assistance Review: Turning an Economy Around 1996 1994 Evaluation Results Industrial Restructuring: World Bank Experience, Future Challenges Lending for Electric Power in Sub-Saharan Africa Social Dimensions of Adjustment: World Bank Fxperience, 1980-93 The Aga Khan Support Program: A Third Evaluation Book sales available from: The World Bank PO Box 960 Herndon, VA 20172-0960 USA Fax: (703) 661-1501 Tel: (703) 661-1580 Internet: htrp://www.worldbank.org From the World Bank homepage, select publications. 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E-mail address: ecampbellpage@worldbank.org QUANTITY TITLE PRECIS # PLEASE PRINT CLEARLY Name Address City State Postal Code_ Country Telephone Recent OED Precis NUMBER 176 Meeting the Health Care Challenge in Zimbabwe 175 Development Effectiveness, 1998: Opportunities in a Volatile Environment 174 Disaster Assistance 173 Support for Smaller Enterprises 172 PCR: El Salvador 171 PCR: Uganda 170 PCR: Bosnia & Herzegovinia 169 Post-Conflict Reconstruction (PCR) 168 India's Dairy Revolution 167 Philippines: From Crisis to Opportunity 166 Financial Sector Reform 165 A Borrower's View of the World Bank 164 Rebuilding the Mozambique Economy 163 1997 Annual Review of Development Effectiveness (ARDE) 162 Kenya's Geothermal Development Program 161 C6te D'Ivoire: Devaluation's Benefits 160 Feeder Roads in Brazil 159 Transport in Thailand: Lessons for Institutional Development 158 Agriculture in Hungary 157 Reducing Flood Hazards and Traffic Congestion in Tunisia 156 Best Practices in Urban Development: Learning from Brazil 155 Two Projects in One: Lessons from Jamaica 154 Sustaining Rural Water Systems: The Case of Mali 153 Grassroots Organizations for Resource Management in the Philippines