IDA17 Retrospective
Maximizing
Development
Impact
Leveraging IDA to
meet global ambitions and
evolving client needs
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IDA17 Retrospective:
Maximizing Development Impact
Leveraging IDA to Meet Global Ambitions and Evolving Client Needs
ACRONYMS AND ABBREVIATIONS
Fiscal year (FY) = July 1 to June 30
ADB Asian Development Bank IDA17 Seventeenth Replenishment of the International
Development Association
AfDB African Development Bank
ICR Implementation Completion and Results Report
AfDF African Development Fund
IEG Independent Evaluation Group
AFR Africa Region
IFC International Finance Corporation
AIIB Asian Infrastructure Investment Bank
IMF International Monetary Fund
ASA Advisory Services and Analytics
IPF Investment Project Financing
CCSA Cross-Cutting Solution Area
JIP Joint Implementation Plan
CEN Country Engagement Note
LCR Latin America and Caribbean Region
CPA Country Programmable Aid
MDB Multilateral Development Bank
CPF Country Partnership Framework
MDGs Millennium Development Goals
CPL Concessional Partner Loan
MDRI Multilateral Debt Relief Initiative
CPR Country Performance Rating
MIGA Multilateral Investment Guarantee Agency
CPIA Country Policy and Institutional Assessment
MNA Middle East and North Africa Region
CRW Crisis Response Window
MSP Multi-Sectoral Plan
CSO Civil Society Organization
MTR Mid-Term Review
DIME Development Impact Evaluation
NCBP Non-Concessional Borrowing Policy
DPF Development Policy Financing
ODA Official Development Assistance
EAP East Asia and Pacific Region
OECD Organisation for Economic Co-operation and
ECA Europe and Central Asia Region
Development
EITI Extractive Industries Transparency Initiative
PBA Performance Based Allocation
EU European Union
PforR Program-for-Results
FCS Fragile and Conflict-affected State
RMS Results Measurement System
FCV Fragility, Conflict and Violence
SAR South Asia Region
FY Fiscal Year
SCD Systematic Country Diagnostic
GDP Gross Domestic Product
SDGs Sustainable Development Goals
GNI Gross National Income
SDR Special Drawing Right
HIPC Heavily Indebted Poor Countries
SUF Scale-up Facility
IBRD International Bank for Reconstruction and
UN United Nations
Development
VAT Value-added Tax
ICT Information Communications Technology
WBG World Bank Group
IDB Inter-American Development Bank
WDR World Development Report
IoC Instrument of Commitment
WHO World Health Organization
IDA International Development Association
IDA17 Retrospective: Maximizing Development Impact
TABLE OF CONTENTS
EXECUTIVE SUMMARY.......................................................................................................................................................................................... i
INTRODUCTION.........................................................................................................................................................................................................1
CHAPTER 1. IDA17 AT WORK AMID GLOBAL PROGRESS AND CHALLENGES.....................................................................3
Section 1: Economic and Social Developments in IDA Countries........................................................................................... 4
Section 2: IDA within the Global Development Finance Landscape....................................................................................10
CHAPTER 2. DELIVERING ON IDA17........................................................................................................................................................... 15
Section 1: Impact and Key Results ....................................................................................................................................................... 15
Section 2: Maximizing Development Impact................................................................................................................................... 32
Section 3: Special Themes: Inclusive Growth, Gender Equality, Climate Change,
and Fragile and Conflict-affected States...................................................................................................................................53
Section 4: IDA17 Lending Trends.......................................................................................................................................................... 77
Section 5: IDA17 Windows........................................................................................................................................................................87
Section 6: IDA17 Financing Framework............................................................................................................................................. 98
CHAPTER 3. PREPARING FOR IDA18, 19 AND BEYOND............................................................................................................... 103
Annex 1: IDA17 Policy Commitments – Status of Monitorable Actions ................................................................................ 109
Annex 2: Select IDA Terminology................................................................................................................................................................121
Annex 3: List of IDA17 Eligible Countries.............................................................................................................................................. 124
Annex 4: List of FCS Countries during IDA17.......................................................................................................................................125
Annex 5: IDA17 Financing Framework and Donor Contributions Table............................................................................... 126
BOXES
Box 1. Development Progress in IDA Countries, Despite Hurdles................................................................................................... 6
Box 2. Trust Funds: A Complement to IDA Assistance....................................................................................................................... 12
Box 3. India’s Inspiring Rise from Early IDA Client to Development Donor.............................................................................. 16
Box 4. IDA17’s Evolving Commitment to Education............................................................................................................................. 18
Box 5. Overcoming Complex Challenges through Joint Planning to Boost Mali’s Exports..............................................34
Box 6. Guarantees Close a Finance Gap in Ghana’s Efforts to Deliver Affordable, Clean Energy................................36
Box 7. Modernizing and Streamlining Public Financial Management in Ethiopia.................................................................. 37
Box 8. Highlights of the Ways Knowledge Products Can Drive Development.......................................................................41
Box 9. Ensuring Development Results through Monitoring and Evaluation............................................................................42
Box 10. Gathering and Using Know-How – Wherever It Is – to Improve Delivery.................................................................43
Box 11. New Research Hub Shares Malaysia’s Lessons with More than 50 Developing Countries............................... 44
Box 12. What Others Say about IDA.............................................................................................................................................................46
Box 13. Better Understanding the Costs of Development in Different Fields.........................................................................48
Box 14. Tailoring Support to Cope with Insecure Environments – Lessons from Afghanistan.......................................49
Box 15. Drones, Phones, and Big Data: Putting ‘Disruptive’ Technologies to Work.............................................................. 51
Box 16. Making Climate Change a Key Priority in Country Analytics, Strategies, and
Investments: the Uganda Experience................................................................................................................................................64
Box 17. Key Lessons of Developing Multi-Sectoral Plans and Investments..............................................................................66
Box 18. Snapshot of WBG Work on Sustainable Energy for All in IDA17...................................................................................67
Box 19. IDA17’s Support to Vulnerable but Advancing Nations Through the Turn-Around Regime...........................69
Box 20. Partnering Across the Development-Humanitarian-Security Nexus........................................................................... 71
Box 21. Re-engagement with Myanmar......................................................................................................................................................74
Box 22. IDA17 Support to Refugees and Displaced People..............................................................................................................76
Box 23. Striking the Right Financing Mix to Promote Debt Sustainability................................................................................ 79
Box 24. Trends in the Use of IDA Financial Products..........................................................................................................................82
Box 25. Bolstering Crisis Response for IDA Countries........................................................................................................................ 93
Box 26. Concessional Partner Loans in IDA17.......................................................................................................................................100
IDA17 Retrospective: Maximizing Development Impact
FIGURES
Figure 1. MDG Achievements in IDA Countries (selected goals)......................................................................................................5
Figure 2. Poverty Ratio: People Living on Less than US$1.90 a Day..............................................................................................5
Figure 3. Remaining Poverty...............................................................................................................................................................................5
Figure 4. Economic Growth in the World and IDA Countries............................................................................................................7
Figure 5. Average Inflation and Real Effective Exchange Rate in IDA Countries.................................................................... 8
Figure 6. Natural Disasters in IDA Countries.............................................................................................................................................. 9
Figure 7. Average Fiscal Balance and Government Debt in IDA Countries..............................................................................10
Figure 8. Net Financial Flows to Developing Countries (US$ billion)........................................................................................... 11
Figure 9. Net Financial Flows to Low-income Countries (US$ billion)......................................................................................... 11
Figure 10. Net Financial Flows to IDA Countries (US$ billion).......................................................................................................... 11
Figure 11. Country Programmable Aid to IDA Countries (US$ billion at 2015 prices)..........................................................14
Figure 12. IDA, IFC and MIGA Support to Private Sector Development (US$ billions).......................................................33
Figure 13. Project Co-financing....................................................................................................................................................................... 39
Figure 14. Advisory Services and Analytics Completed in IDA17.................................................................................................. 40
Figure 15. Geographic Mapping for Analysis and Communication of Related Crisis Issues.............................................50
Figure 16. Inclusive Growth Seen Across Most IDA Countries (percent)...................................................................................54
Figure 17. IDA Countries are Highly Vulnerable and Low Emitting...............................................................................................62
Figure 18. IDA Climate-related Lending Commitments (in US$ million)....................................................................................62
Figure 19. IDA17 and IDA16 Resource Allocation by Modality (share of total replenishment)........................................ 77
Figure 20. IDA17 Per Capita Allocation and Country Performance Rating...............................................................................78
Figure 21. IDA Commitments to FCSs.......................................................................................................................................................... 81
Figure 22. Increasing Share of IDA Support to FCSs via Credits...................................................................................................82
Figure 23. IDA17 Commitments by Major Sector...................................................................................................................................84
Figure 24. Core Funding, Windows and Transitional Support Commitments .......................................................................87
Figure 25. Crisis Response Window by Type of Disasters since IDA16...................................................................................... 89
Figure 26. Crisis Response Window Allocations by Region Since IDA16................................................................................. 90
Figure 27. Sector Distribution Under the Crisis Response Window Since IDA16................................................................. 90
Figure 28. Post-disaster Financing Commitments and Pledges Since IDA16........................................................................... 91
Figure 29. IDA Regional Program Commitments..................................................................................................................................94
Figure 30. Concessional IDA Commitments vs IDA17 Scale-up Facility Commitments, Sector Breakdown
(as % of Respective Totals).................................................................................................................................................................... 97
Figure 31. A Record IDA Financing Envelope Due to Innovations (US$ million)...................................................................99
Figure 32. Historical Approval of IDA Single-currency Lending.................................................................................................. 102
IDA17 Retrospective: Maximizing Development Impact
TABLES
Table 1. IDA17 Average Preparation and Implementation Cost per Bank-Financed Project
and Guarantees in IDA Countries........................................................................................................................................................45
Table 2. Direct Links to IDA17 Overarching Theme and Special Themes in Country Strategies
(by Number of Country Partnership Frameworks)....................................................................................................................46
Table 3. IDA Commitments by Financial Products............................................................................................................................... 79
Table 4. Outcome Ratings of Closed Operations Based on IEG Evaluations..........................................................................85
Table 5. Problem Projects in Investment Operations as Share of Portfolio.............................................................................85
Table 6. Disbursement Ratio of IDA Investment Projects ................................................................................................................86
Table 7. IDA17 Windows', Resources Combined with National Allocations and Counterpart Funding......................88
Table 8. Countries that Received Financing Through the Crisis Response Window after
Natural Disasters During IDA17: Human and Economic Impact........................................................................................... 92
COMPANION PAPERS
IDA17 Support by Global Practices: Companion Paper to the IDA17 Retrospective
IDA17 Regional Perspectives: Companion Paper to the IDA17 Retrospective IDA
Financial Assistance in IDA17: Progress Report on Commitments and Disbursements
IDA17 Retrospective: Maximizing Development Impact
IDA17 Retrospective: Maximizing Development Impact
FOREWORD
It is a pleasure to introduce the IDA17 Retrospective: developing and advanced economies alike. In the Horn
Maximizing Development Impact. Leveraging IDA to of Africa, we partnered with others to help millions
Meet Global Ambitions and Evolving Client Needs. of people affected by famine, while working with
In 2013, our shareholders came together in tough governments to bring about longer-term stability.
economic times and pledged to step up efforts to
end extreme poverty. With a package of large-scale Many more achievements can be celebrated. One of
policy commitments and generous contributions from our key partners since IDA’s establishment in 1960,
51 donor countries, we delivered a replenishment of India, graduated from IDA at the end of IDA16—
US$55 billion. This record figure reflected our partners’ together with Angola, Armenia, Azerbaijan, Bosnia and
belief that investing in IDA countries helps secure Herzegovina, and Georgia—as a result of a remarkable
future prosperity for all countries. development path. We helped many countries that
are doing well but have stubborn pockets of poverty:
This report examines how IDA delivered—to the IDA projects helped build schools, health clinics, and
penny—on its commitments during the period from roads; electrify rural areas; make agriculture more
July 2014 to June 2017. Looking at these years, we see productive; and stabilize countries’ finances.
how three key factors shaped our work and challenged
us to think differently about the way we work in the Innovations pioneered in IDA17 are helping our bold
poorest countries. IDA18 replenishment to meet growing demand and
global challenges. In our increasingly interconnected
First, the Sustainable Development Goals (SDGs), world, investments in IDA countries bring benefits for
adopted by countries globally in 2015, raised the bar the global community. This is particularly true in areas
for international development cooperation, creating a affected by conflict and fragility, where supporting
shared awareness that “business as usual” would leave prosperity and livelihoods helps build a more secure
too many poor and vulnerable people languishing. and stable world for everyone.
IDA17 responded to this challenge through four
“special themes”: inclusive growth, gender equality, I look forward to continuing to work with IDA’s global
climate change and fragility and conflict. coalition. With the commitment and enthusiasm of our
shareholders, clients, World Bank staff, civil society
Second, developing countries striving to meet the partners—and especially IDA’s diverse stakeholders—
SDGs—and those coping with crises both new and we will deliver many more remarkable and lasting
old—called for financing at levels far above previous results for the world’s poor.
eras. IDA17 not only made sure this happened for the
poorest countries but also made innovations to IDA’s
financial model which mobilized significant additional
financing and laid the groundwork for an even more
effective IDA18. The innovations introduced in IDA16
and IDA17 generated roughly US$15 billion for the
IDA17 period. And third, a range of complex cross-
border challenges required new responses. The Ebola Kristalina Georgieva
outbreak in West Africa and the refugee crisis, for CEO, World Bank
example, have had a global effect, posing risks for
IDA17 Retrospective: Maximizing Development Impact
IDA17 Retrospective: Maximizing Development Impact
EXECUTIVE SUMMARY
The seventeenth replenishment of the International The unfinished agenda, which demands an ongoing,
Development Association (IDA17) was a milestone in broad-based commitment to achieving results
improving the scale and impact of IDA’s investments through IDA as the world’s global alliance for the poor.
for the world’s poor.1 During the three year
replenishment period (from July 1, 2014, to June 30,
2017) IDA delivered the largest and most ambitious
program of assistance to date, providing US$55 billion
THE EVOLVING GLOBAL CONTEXT
of concessional assistance to the world’s poorest
developing countries. IDA17 was implemented in a context of volatile
economic recovery, heightened global aspirations,
Implemented at a time of heightened global ambitions intensifying client demand, and the need to provide
and growing global complexities, IDA17 delivered robust solutions to fragility and crisis. The development
a strong core program for its clients and fulfilled a environment was characterized by several trends:
broad range of policy commitments agreed with its
partners, while adapting to new client demands and The world confronted a large, unfinished development
opportunities. The IDA17 core program supported agenda, in spite of much progress made over
clients fighting stubbornly high poverty, with many the last decades. The period of the Millennium
facing significant development and capacity challenges Development Goals (MDGs) was concluded with
in building functioning economies. At the same time, many development gains by 2015. Yet 500 million
IDA once more demonstrated its competence to adapt people still live in extreme poverty in IDA countries
to evolving global circumstances. Implementation of and many experience heightened vulnerability. Some
a strong package of financial and policy innovations IDA countries have also been faced with fragility in
enabled IDA17 to respond swiftly and effectively to its many forms: forced displacement within countries
support countries in facing new threats such as climate and across borders, natural disasters, economic crises,
change, pandemics, and a dramatic refugee crisis that political instability and conflict, climate change-
could reverse hard-won gains in poverty reduction. In related shocks, and pandemics such as Ebola. These
addition, through leveraging resources, knowledge, events have a disproportionate impact on the poor
and the private sector, IDA17 responded to the global and most vulnerable. In addition, despite economic
call to unlock new opportunities to mobilize greater growth slowly improving in IDA countries, growth
resources for greater development impact. rates remain low, and growing debt burdens and
mounting demographic pressures in some regions
This retrospective takes stock of the IDA17 program, pose particular threats to poverty reduction.
the innovations it introduced, its performance and
results, and it distills lessons that prepare IDA for The global community stepped up its ambitions
IDA18 and beyond. To provide a picture of what IDA to confront this large and urgent task at a time of
achieved, how, and for and with whom during the limited resources. It committed to fulfill the promise
IDA17 period, this report covers three areas: (1) The of a compelling global agenda agreed for 2030 – the
rapidly-evolving global economic and development Sustainable Development Goals (SDGs), the Addis
landscapes; (2) The results achieved through IDA’s Ababa Action Agenda, and the Paris climate and
work with client countries and other partners; and (3) Sendai disaster agreements.
1 IDA donors and borrower country representatives meet every three years to agree on IDA policy, financing, and allocation rules. The
seventeenth replenishment of IDA (IDA17) was agreed with IDA’s shareholders during replenishment consultations in 2013. The IDA17
Deputies Report Additions to IDA Resources: Seventeenth Replenishment - IDA17: Maximizing Development Impact was approved by the
Executive Directors of IDA on March 25, 2014.
i
IDA17 Retrospective: Maximizing Development Impact
With today’s environment more complex than ever • Uniting a global coalition to strengthen a multilateral
before, global development, peace and security are approach. A coalition of 51 donors, including four
demanding robust, multilateral solutions. The world new, emerging-market donors – India, Indonesia,
is facing a range of increasing, multidimensional Malaysia and Thailand – contributed for the first
challenges: global economic headwinds; fragility time to the record IDA17 package of US$55 billion.
and conflict; violent extremism; large refugee flows; IDA17 prepared, launched and tested important
climate change; natural disasters; and health crises financial innovations (such as Concessional Partner
and pandemics. These require a broader, coordinated Loans) to scale up resources to invest in the poor.
international response across multiple policy areas. As The innovations jointly generated an additional
the world becomes more and more interconnected, US$15 billion in financing for the poorest and most
challenges facing one country have stronger spillover vulnerable countries. Building on preparatory work
effects for others. While two decades of rapid performed during IDA16, these innovations paved
globalization resulted in increased trade and financial the way for IDA to access capital markets for the
integration, accompanied by a decline in global first time during IDA18, based on a triple-A rating.
inequality, not everyone has benefitted. As part of the
tools available to the international community to foster • Catalyzing private sector support. IDA together,
collective action, IDA—in partnership with others—is with the International Finance Corporation (IFC)
well-positioned to support the poorest and most fragile and the Multilateral Investment Guarantee Agency
countries address these challenges, to the benefit of all. (MIGA), plays an important role in both helping
remove the barriers to private sector investment in
support of poverty reduction and in attracting that
support. During IDA17, World Bank Group (WBG)
A STRONG RECORD OF investments and collaborations directly attracted
US$4.64 billion of private capital to initiatives in IDA
HELPING COUNTRIES IMPROVE countries. Recognizing that sometimes both the
private sector and WBG tools can be insufficient
to deliver funds to urgent, high-risk priorities, the
THE LIVES OF THE POOREST WBG created the US$2.5-billion IDA18 IFC-MIGA
Private Sector Window to attract private sector
investment in IDA-only countries, with a focus on
IDA17 showed that IDA brings a unique and powerful fragile and conflict-affected states (FCSs).
set of services that can deliver results at scale; results
that go beyond project outcomes to include shifts in • Supporting country solutions for long-term growth,
the way the world comes to understand poverty and its backed by well-targeted donor resources. IDA is
causes, the way it mobilizes and allocates its resources, an important source of development finance to
and in how it delivers them for the greatest good: its clients—providing on average 18 percent of the
development aid that they receive —and it has proven
• Delivering concrete results. IDA17 saw many its ability to scale up support when asked. With its
advances for the poor, realizing—in many cases— belief in a country-driven development model, 85
years of joint efforts by client countries, IDA, and percent of IDA17 core resources supported strategies
other development partners. To name just a few: IDA jointly developed with country authorities across
enabled the construction or improvement of more various sectors and themes. The other 15 percent,
than 60,000 kilometers of roads, helped immunize managed through special windows, responded to the
almost 70 million children, and provided 35 million increasing number of crises, the demand for regional
people with access to new or better water sources approaches to development, and for scaling up access
and 15 million with improved sanitation facilities. to development finance. The IDA Regional Program,
IDA projects provided electricity to 35 million for example, supported regional connectivity by
people and its investments helped finance the expanding infrastructure in Southern Africa and in
construction or rehabilitation of about 1.5 gigawatts the Pacific; and helped mitigate impact of forced
of renewable energy. IDA worked with dozens of displacement on communities hosting refugees in
countries to enhance national statistical systems, the Horn of Africa. To foster inclusive growth, IDA17
tax systems, and public financial management to embraced an agenda built upon job creation that
ensure sound fundamentals for their continuing spanned multiple dimensions, including financial
efforts to ensure each public dollar is spent for the access and inclusion, efficient public spending, and a
greatest benefit. closer attention to governance and accountability in
the extractive sector.
ii
IDA17 Retrospective: Maximizing Development Impact
• Sharing knowledge and bringing together partners »» On fragility, IDA17 stepped up its engagement
to deliver tailored, flexible, and timely solutions in countries affected by fragility, conflict and
to development challenges. During IDA17, IDA- violence (FCV), providing a global public good
eligible countries received more than 1,800 given the extensive spillover effects of such
advisory services and analytics (ASA) products situations. Through a considerable expansion
such as analyses, policy recommendations, and in financing (about one-third more than in
research reports, ensuring that IDA’s experience IDA16), as well as reliance on new analytical
and technical expertise continued to play an tools and enhanced knowledge of what works
important role in enhancing its operations and and what does not, IDA17 sharpened its focus
clients’ capacity. Another vital feature of IDA’s on drivers of fragility and violence. Recognizing
support to countries is its ability to bring together that an effective response to fragility requires
the broadest array of development actors around strengthened collaboration, IDA forged
key issues or initiatives, locally, regionally, and innovative partnerships, including with the
globally. To further strengthen accountability in United Nations (UN), at the global and local
public management, for example, 27 IDA countries levels. Among notable developments regarding
are participating in the Global Partnership for fragile and conflict-affected countries during
Social Accountability, which builds the capacities IDA17, IDA re-engaged with Myanmar for the
of civil society organizations and governments in first time in 32 years and also returned to work
gathering beneficiary feedback. with the Central African Republic, utilizing the
new “turnaround regime” to provide support for
• Focusing the world’s attention, and global support, political, security, humanitarian and development
on universal development challenges: climate activities. IDA also backed Somalia as it faced
change; gender equality; and FCSs. famine in the spring of 2017. Ultimately, all these
joint engagements seek to support institutional
»» On climate, IDA17 made enormous strides development in the most fragile countries and
in integrating climate and disaster risk in support their eventual transition from fragility
all national development planning and to resilience.
prioritizations, mitigating the impact of climate
risks on the poorest. An unprecedented US$10 • Responding swiftly, effectively, and with the
billion in climate co-benefits were generated flexibility to adapt to new threats and opportunities.
during IDA17, helping many IDA countries move IDA17 met increasing demand by optimizing
to development that is more climate-resilient, the management of IDA’s liquidity framework,
with lower greenhouse gas emissions. generating additional resources at the Mid-Term
Review to create a new, non-concessional Scale-
»» On gender, IDA17 took steps to improve its up Facility (SUF) and also providing exceptional
ability to respond to the stark challenges posed support to the sudden refugee influx in Lebanon
by remaining inequalities between women and Jordan. In addition, the Regional Program
and men, boys and girls. The WBG adopted continued to emphasize and buttress regional
a new gender strategy for FY16-23, for the solutions to development challenges. Through an
first time covering the entire WBG at large. enhanced Crisis Response Window (CRW), IDA17
IDA also deepened the integration of gender responded to 10 natural disasters, a public health
considerations across its operations, launching emergency, and an economic crisis, affecting in
an array of activities in new areas: addressing total 24 countries. The CRW was core to IDA’s
gender-based violence in FCSs; strengthening Ebola response in Liberia, Guinea, and Sierra Leone,
the knowledge base of what does (and what enabling the deployment of additional health
does not) work to close the gender gap in workers, strengthened community-based care and
earnings, productivity, assets, and agency; and triage, and increased diagnostic capacities. IDA17
taking action to improve the availability and also contributed US$1.8 billion to the international
quality of gender data in IDA countries. The new response on the famine in Yemen and Africa in 2017.
WBG strategy raises expectations even higher
and focuses on tangible actions and results, such • Supporting inclusive growth as an integral part
as better jobs for women, removing barriers of the solution to the growing global inequality
to women’s asset ownership, and enhancing gap. Jobless growth in some countries presents
women’s voices. immense challenges and future growth needs to
iii
IDA17 Retrospective: Maximizing Development Impact
create work for all, regardless of age and gender. to a more differentiated approach to tackling these
With an estimated 600 million job seekers entering challenges, tailored to country contexts in IDA18.
the labor market over the next decade, IDA17 In addition, IDA18 saw the introduction of a new
set out to strengthen its emphasis on creating financing window to support work with refugees. This
work opportunities and close to 400 jobs- new instrument enshrines the lessons of IDA17.
relevant projects were under implementation or
in development in IDA countries by the end of the Shaping IDA’s policy agenda. Work on promoting
term, according to WBG data. inclusive growth and strengthening governance
and accountability in IDA17 laid the ground for the
new IDA18 special themes on “jobs and economic
transformation” and “governance and institutions”.
AN UNFINISHED AGENDA: The other IDA17 special themes—gender equality,
climate change and FCSs—were continued in IDA18.
PREPARING FOR IDA18 Realizing WBG synergies. IDA17 piloted Joint
Implementation Plans to strengthen synergies
AND BEYOND between the WBG institutions at the country level,
laying the foundation for more formal collaboration
mechanisms to be launched during IDA18. The Joint
In delivering on IDA17 commitments, and reflecting Implementation Plans have been an effective tool
its tradition of evolving quickly to meet changing for bringing together teams from the World Bank
circumstances, IDA listened to its clients, learned from (comprising IDA and the International Bank for
experiences, and adapted its business model, financing Reconstruction and Development or IBRD), the IFC,
framework, and priorities. The capacity for continuous and MIGA to address some of the steepest challenges
learning and adaptation is one of IDA’s main strengths. in key sectors, countries, and regions, with the potential
As such, IDA17 introduced a number of important for stronger private and public sector synergies.
changes to its policy and financing frameworks, led Looking ahead, the IDA18 Private Sector Window
by a dialogue with IDA’s shareholders on how impact and the WBG “maximizing finance for development”
and resources could be stretched further. This has laid approach will provide additional tools to strengthen
a solid foundation for IDA18, IDA19, and beyond to delivery of solutions that bring the public and private
introduce further transformative actions. They can be sectors together.
categorized into four broad areas:
Leveraging IDA. IDA17 further strengthened its focus
Serving IDA’s evolving client base and addressing on value for money by combining enhanced results
country vulnerabilities. As the client base continues management and cost-effectiveness with leveraging
to evolve and become more diverse, IDA will need to financing, knowledge, and partnerships—including
maximize its capacity to be flexible and responsive. through enhanced collaboration across the WBG.
IDA’s ability to innovate is rooted in its fidelity to The financial innovations introduced in IDA17 scaled
the longstanding core business model: country up financing during the replenishment period and
based, non-earmarked, performance-based support, became the stepping stone for the groundbreaking
with a focus on results. While IDA17 experimented innovations launched through the hybrid financial
with the introduction of non-concessional terms model of IDA18, including capital market access. IDA17
through the SUF for the most creditworthy clients was an important intermediate step in securing IDA’s
looking to increase the transformational impact of long-term financial viability. This period also provided
their investments, it also enhanced support to those a powerful demonstration of how to realize the
clients that struggled to address FCV.2 In terms of “billions to trillions” agenda, which aims to leverage
financing, the IDA17 reorientation toward fragility in development finance even more while maintaining a
IDA’s allocation framework increased financing for focus on IDA’s core mission and concessional financing
FCSs by about one-third, leading to even more far- for low-income countries.
reaching enhancements in IDA18. More broadly, IDA17
experiences emphasized the heterogeneity across
FCSs, promoting a response to the more diverse
and interlinked drivers and risks of FCV, and leading
2 Fragility, conflict, and violence (FCV) is a critical development challenge that threatens efforts to end extreme poverty and promote
shared prosperity.
iv
IDA17 Retrospective: Maximizing Development Impact
In retrospect, IDA17 has validated the principles behind
IDA’s ongoing role as the world’s fund for the poor:
that results, at scale, can best be realized through a
multilateral, country-based model, built on a sound
financial basis, that identifies and delivers help to the
areas where more support is needed. Over the course
of program implementation, IDA17 placed emphasis
on solidifying some of its core strengths as a: (i) sound
investment with sustainable capacity to grow when
needed; (ii) long-term investor in development and
premier development institution for the poorest; (iii)
leader in taking on the advancement of global public
goods, and (iv) flexible and responsive agency helping
to tackle emerging threats and opportunities.
While the recently-launched IDA18 replenishment
responds to the challenges confronting IDA countries
and builds on IDA’s proven ability to evolve, some
key IDA roles should be strengthened over IDA19 and
beyond. Looking ahead, IDA countries continue to
face major development challenges and vulnerabilities.
Poverty is increasingly concentrated in the most fragile
countries, which face a range of risks. The development
agenda of countries that are on a path to graduate out
of IDA is also increasingly complex, requiring strong
economic transformation. All countries are facing the
challenge of climate change. And the debt situation
of some countries has started to deteriorate, reducing
their scope to aggressively finance the development
they need. These evolving challenges, paired with
institutional considerations in IDA and the WBG
at large, are bringing some important and topical
themes on the agenda to be addressed through
upcoming replenishment consultations and design.
These include, but are not limited to: increasing debt
accumulation in IDA countries; graduation needs and
transition support; mobilization of the private sector
to enhance development impact; and ongoing and
even greater challenges in FCSs and in crisis response.
v
IDA17 Retrospective: Maximizing Development Impact
vi
IDA17 Retrospective: Maximizing Development Impact
INTRODUCTION
This report examines what the International Brief stories from IDA, as well as examples of projects
Development Association (IDA) achieved during implemented during the IDA17 period, illustrate
the IDA17 period (July 1, 2014 to June 30, 2017), and the impact of IDA at the country and the personal
takes a close look at how IDA continues to maximize levels throughout this report. Considering that IDA
development impact to deliver these results in a fluid engages with its clients over the long-term and that
and challenging global environment. This report covers implementation of IDA projects ranges from one to
three areas essential to understanding both IDA’s seven years, these examples often include projects
efforts and the environment in which it works: (1) The approved during previous replenishment periods.
rapidly-evolving global economic and development Where the IDA17 program is discussed, unless
landscapes; (2) The results achieved through IDA’s indicated otherwise, the report refers to projects
work with client countries and other partners; and (3) approved during IDA17 (although naturally results
The unfinished agenda, which demands an ongoing, for these projects, in most cases, are still to emerge
broad-based commitment to achieving results given the time lags involved in development work).
through IDA as the world’s global alliance for the poor. Further details on IDA projects and results are
available at http://bit.ly/IDAProjectDocs and http://
It discusses the IDA17 overarching theme of IDA.Worldbank.org/Results.
“Maximizing Development Impact,” which was
supported through leveraging public and private Finally, the report will discuss how IDA4—as part of
sector resources and knowledge. It also describes the World Bank Group—is evolving and maximizing
progress on implementation of the four special themes the leverage of its financial and knowledge resources
selected for the IDA period. The special themes are to help the international community and developing
areas that shareholders decided to put emphasis on countries address the toughest challenges that we
and include the following: Inclusive growth; Gender face today.
equality; Climate change; and Fragile and conflict-
affected states (FCSs). The IDA17 policy and financing
package was agreed with IDA’s shareholders during
replenishment consultations in 2013, the outcomes of
which are summarized in the IDA17 Deputies Report.3
This retrospective discusses how IDA achieved the
policy commitments under the overarching theme
and special themes, as per the Deputies’ Report, and
illustrates them through examples. A full overview of
the status of the policy commitments at the end of
IDA17 is presented in Annex 1.
3 World Bank. 2014. Additions to IDA Resources: Seventeenth Replenishment - IDA17: Maximizing Development Impact. Washington, DC:
World Bank.
4 Throughout the report, World Bank and the abbreviated Bank refer to IDA and IBRD; World Bank Group refers to IDA, IBRD, IFC, and
MIGA.
1
IDA17 Retrospective: Maximizing Development Impact
2
IDA17 Retrospective: Maximizing Development Impact
CHAPTER 1
IDA17 AT WORK AMID
GLOBAL PROGRESS
AND CHALLENGES
IDA17 was implemented in a context of volatile The global community stepped up ambitions to confront
economic recovery, heightened global aspirations, this large and urgent agenda at a time of limited resources.
intensifying client demand, and the need to It committed to fulfill the promise of a compelling global
provide robust solutions to fragility and crisis. The development agenda agreed for 2030: the SDGs, the
circumstances IDA clients face, and the environment Addis Ababa Action Agenda, and the Paris climate
that IDA operates in, are constantly changing, agreement and Sendai disaster risk reduction framework
demanding that IDA constantly adapt. In this regard, The World Bank Group (WBG) twin goals of eradicating
the development environment during IDA17 was extreme poverty and boosting shared prosperity in a
characterized by three key trends: sustainable manner are aligned with the SDGs and help
client countries deliver on the 2030 agenda. The flagship
The period of the Millennium Development Goals (MDGs) report Poverty and Shared Prosperity 2016: Taking on
concluded in 2015 with many development gains; yet, Inequality presents trends in global poverty and shared
at the transition to the Sustainable Development Goals prosperity and is a call to action through its explanation
(SDGs), many IDA countries faced a large, unfinished of the benefits of development investment. The vision on
development agenda. About 500 million still live in how the WBG can reach its twin goals and support the
extreme poverty in IDA countries and many of these 2030 agenda was further developed by a collaborative
nations experience heightened vulnerability. Some IDA process between the Board of Executive Directors and
countries have also been increasingly experiencing management under the auspices of the report, Forward
fragility in its many forms: forced displacement Look.5
within countries and across borders, natural disasters,
economic crises, political instability and conflict, With today’s environment more complex than ever
climate change-related shocks, and pandemics such before, global development, peace and security are
as Ebola. These events have a disproportionate impact demanding robust, multilateral solutions. The world is
on the poor and most vulnerable. In addition, despite facing a range of increasing and complex challenges
economic growth slowly improving in IDA countries, —global economic headwinds; fragility and conflict;
growth rates remain low, and debt accumulation and violent extremism; large refugee flows; climate change;
mounting demographic pressures in some regions natural disasters; and health crises and pandemics. Yet
pose threats to poverty reduction. official aid flows to low-income and IDA countries have
slowed down in recent years as this global turbulence
5 World Bank. 2016. Forward Look: A Vision for the World Bank Group in 2030. Washington, DC: World Bank.
3
IDA17 Retrospective: Maximizing Development Impact
has been growing and posing new threats to income countries that are often bypassed by foreign
development gains. Section 2 of this chapter examines investment and that cannot count on private flows or
the global aid environment and emphasizes the need remittances to fund their development agendas.
for a robust and growing source of funds for lower-
SECTION 1: ECONOMIC AND SOCIAL
DEVELOPMENTS IN IDA COUNTRIES
Given the incredible complexity of today’s world,
sustaining global development, peace and security
demands robust and multidimensional solutions that
FROM MILLENNIUM
draw upon the widest possible support. As the world
becomes more and more interconnected, challenges
TO SUSTAINABLE
facing one country have stronger spillover effects
for others. While two decades of rapid globalization
resulted in increased trade and financial integration,
DEVELOPMENT GOALS
accompanied by a decline in global inequality, not At the close of the MDG period in 2015, it was clear the
everyone has benefitted, and this is possibly the world had made significant development strides since
most pressing priority for all who support multilateral 1990 (figure 1):
solutions. While there have been signs of income
growth for the bottom 40 percent of income-earners • The first MDG target, to halve the 1990 poverty rate in
in most developing countries6, it is imperative that developing countries (at that time defined as people
the international community does more to make living on US$1.25 a day or less), was achieved. The latest
economic gains more inclusive, particularly in IDA available poverty data from 2013 show that poverty
countries. While inequality decreased in the majority in developing countries by that time had declined
of IDA countries over the past 20 years, income data significantly to 17 percent of the developing world
confirms that the inequality gap grew in a significant living on less than US$1.90 a day. In IDA countries,
number, emphasizing the need to promote growth poverty levels remain much higher (28 percent),
that brings both jobs and real income gains. especially in FCSs (35 percent; figure 2).
The world embraced a new global development • Over half of developing countries and 40 percent
agenda in 2015 midway through the IDA17 period, of IDA countries achieved the goal to halve
characterized by several landmark agreements and their poverty rates by 2013. If we also include
policy shifts: the transition from the MDGs to the improvements in poverty rates, more than three-
SDGs; the Addis Ababa Action Agenda; the Paris quarters of developing and IDA countries saw
climate agreement; and the Sendai framework. To higher incomes among the poorest households
galvanize international and national efforts, the WBG over the period 1990-13 (figure 3). For FCSs,
established ambitious yet achievable twin goals, the picture was more clouded. Only 60 percent
striving to, first, end extreme poverty by 2030 and, improved poverty rates or achieved the goal, and
second, promote shared prosperity in a sustainable 40 percent of FCSs fell into even greater poverty.
manner. To deliver on this agenda, the WBG realigned
its activities, resources, and organizational model. The • On education, millions of children who were unlikely
new model aims to better support clients in delivering to survive their fifth birthday went on to school in
development solutions by advancing knowledge of ever greater numbers during the MDG period.
what works and by working as “One WBG”, leveraging
the strengths of all core WBG institutions: IDA, IBRD, • The proportion of undernourished people in
IFC, and MIGA. developing regions almost halved and primary
school enrollment reached 91 percent.
6 World Bank. 2016. Poverty and Shared Prosperity 2016: Taking on Inequality. Washington, DC: World Bank Group.
4
IDA17 Retrospective: Maximizing Development Impact
Figure 1. MDG Achievements in IDA Countries (selected goals)
GOAL 1 GOAL 2 GOAL 3 GOAL 4 GOAL 5 GOAL 6 GOAL 7
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
T r et 1.A: T r et 1.C: T r et 2.A: T r et 3.A: T r et 3.A: T r et 4.A: T r et 5.A: T r et 6.A: T r et 7.C: H lve
H lve the H lve the Ensure th t, b Elimin te ender Elimin te Reduce b two Reduce b three H ve h lted the proportion of
proportion of proportion of 2015, children disp rit in ender disp rit thirds the qu rters the nd be un to the popul tion
people whose people who ever where, prim r nd in prim r nd under-five m tern l reverse the without
income is less suffer from bo s nd irls second r second r mort lit r te mort lit r tio spre d of sust in ble
th n $1.25 hun er like, will be ble educ tion, educ tion, HIV/AIDS ccess to s fe
d to complete prefer bl b prefer bl b drinkin w ter
full course of 2005, nd in ll 2005, nd in nd b sic
prim r levels of ll levels of s nit tion
schoolin educ tion no educ tion no
l ter th n 2015 l ter th n 2015
ACHIEVED PARTIALLY ACHIEVED NOT ACHIEVED NO DATA
(IMPROVEMENT)
Source: UN MDG Indicators.
Figure 2. Poverty Ratio: People Living on Less Figure 3. Remaining Poverty
than US$1.90 a Day
50 47 M n countries h lved or But still lon w to o,
improved povert r tes... especi ll in FCS countries...
46 MDG
40 24% 55% 21%
35
IDA
30 36% 41% 23%
30
28
20
17 IDA FCS
30% 30% 40%
10
1990 2005 2013 -100 -80 -60 -40 -20 0 20 40 60 80 100
IDA Developin IDA FCS Improved T r et chieved Worsened/no d t
countries (MDGs)
Source: World Bank, based on FY17 FCS and IDA eligibility lists. Source: World Development Indicators.
Note: “Developing countries” represent those whose MDG poverty Note: Based on FY17 FCS and IDA eligibility lists. “Developing
indicators were monitored and available at http://mdgs.un.org/ countries” represent those whose MDG poverty indicators were
unsd/mdg/Data.aspx. monitored and available at http://mdgs.un.org/unsd/mdg/Data.aspx.
5
IDA17 Retrospective: Maximizing Development Impact
• Partly due to gains in the fight against HIV/AIDS, estimated 460 million people—or about 28 percent
malaria, and tuberculosis, the under-five mortality of the population in IDA countries—still living on less
rate declined by more than half, with national than US$1.90 a day in 2015, extreme poverty remains
targets met in over half of developing countries. unacceptably high and has become increasingly
concentrated in two regions: Sub-Saharan Africa and
• Most countries met their target of halving the South Asia. Non-income disparities, such as limited
proportion of people who lack access to improved access to quality education and health services, pose a
sources of water. bottleneck to sustained poverty reduction and shared
prosperity. Growth has slowed steadily in recent
Despite important development gains, significant years and may not recover to levels seen during the
challenges remain amid the push to meet the SDGs MDG period, making it more difficult to achieve the
and the rest of the 2030 agenda. Three of these stand eradication of poverty in all forms. Heightened risks
out: the depth of remaining poverty, the unevenness and environmental concerns are a major challenge,
in shared prosperity, and the persistent disparities especially to address the impact of climate change on
in non-income dimensions of development. With an the natural resources upon which the poorest depend.
Box 1. Development Progress in IDA Countries, Despite Hurdles
The IDA17 Results Measurement System showed that development progress by individual IDA countries,
measured against the MDGs, also translated into improvements across many other key indicators, in
spite of the challenging global economic environment:
• GDP per capita of IDA countries in constant 2010 US dollars increased to US$1,239 from US$1,125 in
2012.
• Between 2010 and 2013, global extreme poverty—defined as people living on less than US$1.90
a day—dropped to about 11 percent from 16 percent, meaning that close to 320 million people (a
group roughly the same as the population of the US), escaped extreme poverty during that time.
• In the same period, extreme poverty in IDA countries fell to 29.4 percent from 33.6, representing
32.9 million people.
• Malnutrition prevalence for children under five fell to 34 percent in 2015 from 37 percent in 2012.
• Under-five mortality drastically decreased to 73.17 percent in 2017 from 84.54 percent in 2014.
• Maternal mortality decreased to 439 per 100,000 births in 2015 from 502 in 2010, and access to
improved sanitation went up to 44.0 percent of total population in 2015 from 41.4 percent in 2011.
• The ratio of girls to boys in secondary education increased to 88.6 percent in 2014 from 87.5 percent
in 2011.
• Reflecting in part demographic trends and the rapid growth of labor forces, employment-to-
population ratios remained roughly constant, increasing on aggregate to 63.8 percent in 2016 from
63.5 percent in 2011, but falling to 46.9 percent from 47.2 percent for youth.
• The household electrification rate increased to 55 percent in 2017 from 49 percent in 2014, possibly
reflecting improvements in data quality. Likewise, access to an improved water source increased to
75 percent in 2017 from 72 percent in 2014.
• The mobile cellular telephone subscription rate went up from 63.5 percent in 2012 to 77.2 percent
in 2016.
6
IDA17 Retrospective: Maximizing Development Impact
FRAGILE ECONOMIC GROWTH Towards the end of IDA17, GDP growth in IDA
countries started to recover. The improvement was
CONTINUES TO CONSTRAIN most notable among IDA-gap countries—those clients
that have per capita incomes above IDA’s operational
IDA COUNTRIES
cutoff for more than two consecutive years but are not
determined creditworthy for IBRD lending—and was
supported by a rebound among commodity exporters
(Ghana, Honduras) and continued solid growth among
The global economic environment weakened during commodity importers (Djibouti, Kosovo). IDA-blend
the IDA17 period. Global growth reached a post- countries experienced a much weaker recovery due to
crisis low of 2.4 percent in 2016 (figure 4). Economic setbacks in some oil exporters (Bolivia, Nigeria). IDA-
conditions have gradually improved, with global only countries continued to expand at a steady pace.
growth picking up, supported by a broad-based
cyclical recovery in advanced economies, diminishing Increased external pressures during IDA17 led many
headwinds among commodity-exporting countries, IDA countries to experience currency depreciation and
and higher growth in key commodity importers. draw upon reserves. Current-account deficits increased
across IDA countries in 2015 from their 2014 levels, and
Against this backdrop, IDA countries experienced narrowed somewhat but remained elevated in 2016.
a slowdown in growth. Annual growth in gross Subsequent nominal exchange rate depreciations
domestic product (GDP) in IDA countries dropped contributed to a rise in inflation. However, inflation
around 1 percentage point between IDA16 and IDA17, began to ease in a number of countries, especially in
to an average of 4.6 percent. The slowdown was non-oil exporters, toward the end of 2016, reflecting
broad-based but more pronounced among IDA-blend strong external disinflationary pressures from lower
countries—those clients that are eligible to borrow oil prices. The uptick in commodity prices, along
from IDA as well as IBRD—as the oil price plunge with central bank interventions, helped commodity
weighed heavily on oil exporters (e.g., Nigeria, and exporting countries to mitigate currency pressures in
Republic of Congo). For details, see figure 4. 2017 (figure 5).
Figure 4. Economic Growth in the World and IDA Countries7
Figure 4.A. GDP Growth – Global Figure 4.B. GDP Growth – IDA Groupings
8 8
6 6
Percent
Percent
4 4
2 2
0 0
2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017
IDA16 IDA17 IDA16 IDA17
World Adv nced Economies IDA IDA Afric IDA onl IDA blend IDA p
Sources: J.P. Morgan, World Bank.
Note: Aggregate growth rates calculated using constant 2010 US dollars GDP weights.
7 See Annex 3 for a list of IDA-eligible countries.
7
IDA17 Retrospective: Maximizing Development Impact
Figure 5. Average Inflation and Real Effective Exchange Rate in IDA Countries
Figure 5.A. Inflation Figure 5.B. Real-effective Exchange Rate
10 130
8 120
Index, 2014=100
6 110
Percent
4 100
2 90
0 80
J n-14 Oct-14 Jul-15 Apr-16 J n-17 Oct-17 J n-14 Sept-14 M -15 J n-16 Sept-16
IDA-onl IDA- p IDA-blend IDA-onl IDA- p IDA-blend
Source: World Bank.
MORE COUNTRIES and Haiti; floods and tropical cyclones affecting
Bangladesh and Haiti; and the devastating earthquake
GRAPPLE WITH FRAGILITY
that struck Nepal in 2015. The drought in Ethiopia
during September 2015 – April 2017 was the event that
affected the highest number of people (10.2 million).
AND CONFLICT Climate change exacerbates the risks posed by such
disasters to IDA countries as they strive to boost growth
Rising geopolitical tensions amplified growth and address inequality. The Bank’s Shock Waves8
challenges in IDA17, with a concomitant increase in report has estimated that the number of people living
the number of fragile and conflict situations from 28 in poverty could jump by tens of millions—perhaps as
in 2015 to 31 in 2017. Growth weakened among FCSs, many as 100 million—by 2030 unless forceful action is
partly due to intensifying conflict (such as in Burundi) taken to adapt and to mitigate risks related to climate
or weak response to natural disasters (e.g. Haiti). change. These shocks go beyond natural disasters
However, growth rebounded in the Ebola-affected and include waterborne diseases and pests that
countries (Guinea and Sierra Leone) toward the end become more prevalent during heat waves, floods,
of IDA17, helped by strong support from foreign aid. or droughts, as well as failed crops through changing
rainfall patterns, and steep food price increases that
IDA countries also experienced a rising frequency follow extreme weather events.
and greater severity of natural disasters. Over 100
million people were affected by crisis during IDA17, Pandemics, which can cause millions of deaths and
representing a 45 percent increase compared to erase as much as 1 percent of global GDP, rank alongside
the three previous years (figure 6). Disasters in six climate change as urgent threats to development gains.
countries were responsible for over half the number of Recent analyses estimate that the annual global cost
victims during the period. The increase in the number of moderately severe to severe pandemics is roughly
of affected people was due to severe droughts and US$570 billion or 0.7 percent of global income.9 With
food insecurity affecting Ethiopia, Malawi, Somalia, unprecedented mobility of people, products, and
8 World Bank. 2016. Shock Waves: Managing the Impacts of Climate Change on Poverty. Washington, DC: World Bank.
9 World Bank. 2016. World Bank Group Global Crisis Platform. Washington, DC: World Bank.
8
IDA17 Retrospective: Maximizing Development Impact
Figure 6. Natural Disasters in IDA Countries
In IDA17, hi her number of dis sters... ... ffected 100 million people, over h lf in six countries
500 120
457
445
101
100
400
80
300 70
218 60
200
39
40
100
20
0 0
IDA15 IDA16 IDA17 IDA15 IDA16 IDA17
Number of dis ster ocurrences Tot l # B n l desh | Ethiopi | M l wi
victims Nep l | H iti | Som li
(millions)
World Bank, based on Emergency Events Database (EM-DAT: http://emdat.be/.
food, the myriad of disease-causing microorganisms is Disasters in six countries
also increasingly mobile. No nation is immune to this were responsible for over
growing global threat that can be posed by an isolated half the number of victims
outbreak of an infectious disease in a seemingly remote
part of the world. While outbreaks are inevitable, strong
during the period.
health systems can allow countries to better detect
RISING RISK OF DEBT DISTRESS
and respond to diseases and prevent an outbreak from
becoming a pandemic.
Persistent gender disparities—particularly the
disproportion of men and women in the workforce and IDA17 has seen debt levels in low-income countries
the imbalance in their incomes—are glaring barriers to grow rapidly. Debt risk ratings deteriorated between
more rapid, and more inclusive, economic prosperity. 2014 and 2017 in 20 percent of IDA recipients as
All countries need to do better to promote the full a result of widening fiscal deficits—largely due to
and equal participation of women and men given the greater infrastructure spending, falling revenues from
tremendous scope to generate significant benefits for natural resource exports and currency depreciations,
individuals, families, and economies. Women’s labor and—in some cases—increased recourse to central
force participation and job quality in IDA countries bank advances (figure 7). An increasing number of
consistently trail those of men. IDA countries also have accessed debt markets, both
international and domestic. Government debt remains
Governance remains a critical IDA priority, given elevated, reflecting the slow progress in reducing fiscal
that weak institutions and opaque systems erode deficits and highlighting the need for governments to
public trust and directly impact economic potential. continue their efforts to mobilize domestic revenue
There is a well-established correlation between and rationalize public spending.
aggregate governance metrics and per capita income
across countries, yet this link is tough to break and
real improvements in public institutions take time.
Many IDA countries face even sterner challenges in
strengthening governance given often challenging
prevailing conditions, such as fragility and conflict.
9
IDA17 Retrospective: Maximizing Development Impact
Figure 7. Average Fiscal Balance and Government Debt in IDA Countries
Figure 7.A. Fiscal Balance Figure 7.B. Government Debt
0 60
-2
-4
50
Percent of GDP
Percent of GDP
-6
-8
40
-10
-12
-14 30
IDA-onl IDA- p IDA-blend IDA-onl IDA- p IDA-blend
2014 2015 2016 2017 2014 2015 2016 2017
Sources: World Bank, IMF.
Note: Unweighted averages of countries within the country group.
SECTION 2: IDA WITHIN THE GLOBAL
DEVELOPMENT FINANCE LANDSCAPE
The past 30 years have seen dramatic changes in However, 95 percent of the rapid increase in private
global financing for development, with the share of flows has been captured by middle-income countries,
official aid flows diminishing in relative terms. In 1990, while official aid continues to account for half of
official sources accounted for almost 50 percent financial flows in low-income nations and more than
of net financial flows to low- and middle-income one-third in IDA countries. While middle-income
countries.10 By 2015, they represented less than 10 countries posted impressive double-digit annual
percent. The level and composition of net financial growth rates in net financial flows during the 1990-
flows to developing countries have changed rapidly, 2016 period, low-income countries have lagged,
fueled by the continued growth of net private capital posting below 1 percent annual growth rates. Low-
flows, including remittances that have risen more than income countries have been largely bypassed by the
five-fold since 2000. Today, private flows and worker positive global trend in foreign direct investments and
remittances combine to be the most significant source worker remittances, and, still rely heavily on stable
of development financing. official flows as private flows remain volatile and
elusive. See figures 8, 9, and 10.
10 Also see: Adugna, Abebe, Rocio Castro, Boris Gamarra, and Stefano Migliorisi, 2011, Finance for Development: Trends and Opportunities in
a Changing Landscape. Washington, DC: World Bank.
10
IDA17 Retrospective: Maximizing Development Impact
Figure 8. Net Financial Flows11 to Developing Countries (US$ billion)
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Official flows Remittances Private flows
Figure 9. Net Financial Flows to Low-income Countries (US$ billion)
250
200
150
100
50
0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Official flows Remittances Private flows
Figure 10. Net Financial Flows to IDA Countries (US$ billion)
250
200
150
100
50
0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Official flows Remittances Private flows
Source (figures 8, 9, 10): World Bank based on data from the Organisation for Economic Co-operation and Development (OECD), World
Development Indicators.
11 Net financial flows comprise of: private flows (foreign direct investments, portfolio investments, and long-term debt), worker remittances,
and official flows which include official development assistance (ODA), and long-term debt.
11
IDA17 Retrospective: Maximizing Development Impact
After reaching a peak in 2013, the flow of ODA grants Humanitarian assistance has been the fastest-
to the developing world is trending down, with a growing type of ODA with an annual growth rate
3 percent average decline over the last five years of 11 percent since 2000. Largely delivered through
in IDA-only countries. This softening in ODA grant bilateral channels, humanitarian aid accounted for 13
flows is reflected in the so-called multi-bilateral flows, percent of ODA in 2016. IDA17 strongly recognized
bilateral development financing channeled through the need to complement the growth in short-term
and implemented by multilateral agencies, often in the humanitarian assistance with medium- and longer-
form of trust funds. At the World Bank, contributions term development plans that address the drivers
to trust funds have declined by 6 percent on average of fragility and conflict, help seize opportunities to
a year after reaching a peak in 2014. This decline has support turn-around countries, and build resilience by
significant implications for IDA countries considering enhancing financing for FCSs.
that 56 percent of these funds are disbursed to IDA
countries.12 This is emerging at a time when multi-
bilateral aid channels, such as trust funds, now comprise
more than 10 percent of total ODA (see box 2).
Box 2. Trust Funds: A Complement to IDA Assistance
Trust funded operations managed by the World Bank support IDA’s engagement in priority areas,
including the thematic priorities identified for IDA17. Trust fund resources complement operations by
helping to ensure that WBG staff, policy makers, and partners have the data, knowledge, and evidence
needed to design effective programs and policies. They are also important catalysts for innovation,
for scaling up proven approaches, and for expanding the frontiers of the development agenda. During
IDA17, trust funds aligned with IDA’s priorities and provided complementary financing.
Trust funds have supported “upstream” work that underwrote more innovative and effective
investments. For example, the Jobs Umbrella Multidonor Trust Fund supported a small pilot of US$1
million to identify and develop opportunities to help the private sector create more and better jobs
in Bangladesh. The fund does this by: (1) building a stronger understanding of job dynamics in both
the formal and informal labor markets; (2) designing short-term, bottom-up pilot projects in specific
sectors with high potential for creating inclusive jobs; and (3) doing groundwork—via consultations
with government, the private sector and other stakeholders—for the adoption and pursuit of a
medium-term jobs agenda. The activity contributed directly to the design of a US$100-million IDA
investment focused on export competitiveness for jobs in Bangladesh.
• Trust funds in IDA17 – key facts: US$6.3 billion in recipient-executed trust funds (59 percent to
FCSs) that benefitted 58 IDA countries.
• Largest recipients were Afghanistan (US$2.7 billion), Ethiopia (US$742 million), and Bangladesh
(US$350 million).
• Largest shares went to public administration (30 percent), followed by education (17 percent);
agriculture, fishing and forestry (13 percent); and health (10 percent).
12 Projects based in IDA countries received the largest share of funding from the World Bank’s Financial Intermediary Funds. Over FY13-
FY17, these funds committed a total of US$5.1 billion to projects in IDA countries. In FY17, this is equivalent to 40 percent of all project
commitments. However, transfers to the WBG from Financial Intermediary Funds declined to US$700 million in FY17 from US$1.1 billion in
FY14.
12
IDA17 Retrospective: Maximizing Development Impact
Box 2. Trust Funds: A Complement to IDA Assistance (continued)
Trust funds that have “joint co-financing”—that is, are funded by both IDA and donor funding but
overseen by the Bank—provided US$2.8 billion in co-financing, equal to 43 percent of the total
recipient-executed trust funds for IDA countries. During IDA17, trust funds supported US$3.3 billion in
stand-alone projects, many of which complemented IDA investments for greater development results.
The largest IDA country trust fund for both co-financing (US$916 million) and stand-alone financing
(US$1.8 billion) during IDA17 was the Afghanistan Reconstruction Trust Fund. Established in 2002,
this Fund has paved the way for longer-term investments by IDA for the country’s reconstruction. It
has helped increase primary school attendance from 4.3 million in 2008 to more than 7.2 million by
2014 (39 percent girls). It has also provided access to electricity for 6.2 million people, connected 17.4
million people to roads, and 20.3 million people to water and sanitation.
During IDA17, the CRW’s support to help contain the Ebola virus in Liberia, Sierra Leone, and Guinea
(discussed further in chapter 2), was complemented by the Ebola Recovery and Reconstruction multi-
donor trust fund.
Trust funds also enabled evaluations that support the design of future IDA projects. The Umbrella
Facility for Gender Equality funds regional Gender Innovation Labs that conduct impact evaluations
of development interventions to generate evidence on how to close the gender gap in earnings,
productivity, assets, and agency. With the results of impact evaluations, these Labs support the design
of innovative, scalable, evidence-based interventions to address gender inequality. For example,
evidence from Gender Innovation Labs impact evaluations in Liberia and Uganda on effective skills
development programs for adolescent girls has influenced large-scale investments. Building on the
results from these evaluations, the Sahel Women’s Empowerment and Demographic Dividend project
established ‘safe space clubs’ that will be offered in combination with other types of innovative
support, such as vocational training and entrepreneurship grants.
Trust funds also allowed for constructive engagement with low-income countries that are not
currently IDA-eligible due to issues like arrears, paving the way to future re-engagement. The State
and Peacebuilding Fund supported a US$20-million program in Somalia that led the way for the
reengagement of the international community by putting in place core government systems and
related capacity.
Several financial intermediary funds provided significant additional resources to the World Bank
for IDA co-financing, stand-alone projects, and preparation and supervision during IDA17. Examples
include the Global Partnership for Education (US$731 million), the Global Agriculture and Food
Security Program (US$162 million), the Strategic Climate Fund (part of the Climate Investment Funds
– US$157 million), and the Global Environment Facility (US$117 million).
13
IDA17 Retrospective: Maximizing Development Impact
IDA AS A KEY SOURCE OF
GLOBAL FINANCING IDA remains an important source of
IDA is the most stable and predictable source of
development financing to its diverse
development financing for the poorest countries, client base and has proven its capability
while the share of private resources flowing to these to scale up to meet new challenges.
countries lags. Programmable aid13 provided by IDA
to its clients tripled between 2000 and 2016. IDA
increased its share of total programmable aid to 18.4 IDA remains an important source of development
percent during the IDA17 period, a four-percentage financing to its diverse client base and has proven
point increase over IDA16. However, as seen in the case its capability to scale up to meet new challenges.
of middle-income countries, development financing is IDA’s share of net ODA flows is particularly high in a
maximized when private flows accelerate at a rapid number of small island economies that face specific
pace. IDA17 recognized the need for leveraging vulnerabilities, as well as in several large economies
private resources and for IDA to play an important facing deep poverty at sub-national levels and
role as a catalyst for increasing the flow of domestic countries undergoing momentous transitions. IDA has
and foreign private capital. IDA17 enhanced IDA-IFC- accounted for 17 percent of the total programmable
MIGA synergies for IDA countries by promoting Joint aid to IDA countries over the last five years (figure 11).
Implementation Plans and expanding the scope of IDA From a sector perspective, IDA’s share in total ODA
guarantees to attract and leverage private resources. is significant. IDA accounts for almost 35 percent of
This strong commitment to crowding-in private capital ODA for disaster prevention and preparedness, 22
and working together as one WBG would lead to the percent of reconstruction, relief and rehabilitation, 20
creation of the Private Sector Window in IDA18. percent in agriculture, 17 percent in water supply and
sanitation, and 14 percent in education.
Figure 11. Country Programmable Aid to IDA Countries (US$ billion at 2015 prices)
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
CPA IDA only CPA other multilateral agencies CPA other donors Humanitarian assistance Debt relief
Source: World Bank, based on OECD data.
13 Country programmable aid (CPA) is the portion of aid that providers can program for individual countries or regions, and over which
partner countries could have a significant say. Developed in 2007, CPA is a closer proxy of aid that goes to partner countries than the
concept of ODA.
14
IDA17 Retrospective: Maximizing Development Impact
CHAPTER 2
DELIVERING ON IDA17
SECTION 1: IMPACT AND KEY RESULTS
IDA is characterized by its ability to help countries
deliver development impact at scale; it is the biggest
single source of concessional funds available to
the poorest developing countries. IDA’s convening
power and its own extensive knowledge base are as During the IDA17 period, IDA helped
essential as these financial resources for countries immunize 69.2 million children, provide
looking for innovative, proven, and broadly-supported improved water access to 43.2 million
poverty reduction programs. Through the support
of a strong coalition of donors—including countries
people, and connect 34.7 million
that have emerged or are progressing out of poverty people to electricity sources.
themselves—IDA is able to magnify the impact of the
resources it manages by leveraging it with other public
and private resources, as well as knowledge. During the
IDA17 period under review, IDA helped: • Strengthen national statistical systems in 48 countries;
• Reform tax policy and administration in 20 countries;
• Immunize 69.2 million children; • Improve public financial management in 33 countries.
• Provide essential health, nutrition, and population
services to 263.4 million people; A full account of IDA17 results can be found in the
• Successfully contain the Ebola Virus Disease in IDA17 Results Measurement System.14,15
Sierra Leone, Guinea, and Liberia over the 2014-
2016 period; IDA’s results reflect decades of honing its focus on
• Cover an additional 23.7 million people with social discovering what works, and what doesn’t. It relies on a
safety nets; rigorous approach to self-evaluation to ensure lessons
• Build or improve 61,054 km of roads; are recognized and absorbed across the institution
• Provide improved water access to 34.2 million people; to lead to concrete development gains. This process
• Deliver better sanitation facilities to 14.5 million people; has made IDA a “pioneer in results measurement”,
• Connect 34.7 million people to electricity sources; according to an assessment by the Independent
• Construct or upgrade 1,492 megawatts of Evaluation Group (IEG).16
renewable energy generation;
14 World Bank. 2017. IDA17 Results Measurement System. Washington, DC: World Bank.
15 The IDA17 results measurement system includes a complete list of indicators with baselines and achievements. Note that data reported
on Tier 1 (which reports long term development outcomes and the broader context of IDA countries in which the WBG operates) of
the IDA17 Results Measurement System (RMS) does not include graduate countries (including India). Tier 2 indicators (which track
development results in IDA countries supported by IDA) do include projects from these countries as they were still being implemented
with IDA resources during IDA17.
16 Independent Evaluation Group (IEG). 2016. Learning from IDA Experience: Lessons from IEG Evaluations. Washington, DC: World Bank.
15
IDA17 Retrospective: Maximizing Development Impact
Box 3. India’s Inspiring Rise from Early IDA Client to Development Donor
India was one of the first countries to draw on IDA resources and since 1961 has benefited from over
US$50 billion across 340 operations, at times accounting for half of all IDA commitments around the
world. India shifted to becoming a recipient of IDA transitional support in FY14 and it elected to graduate
from all IDA financing at the end of FY17 to free up these concessional resources for other countries.
Having been a partner and beneficiary of IDA for 57 years, India has become a donor to IDA over the
last two replenishment cycles, with US$180 million pledged for the IDA18 cycle.
IDA’s partnership with India has contributed to, and evolved with, the country’s remarkable development
story. Since the early 1960s India has advanced from a primarily agrarian economy with large food
deficits, deeply entrenched poverty, low levels of literacy, and poor health indicators, to one which is now
self-sufficient in food production, whose proportion of population in absolute poverty has dramatically
declined and whose literacy rates have risen, and where health indicators have improved. India is now a
global player with one of the world’s fastest-growing economies.
Select highlights of IDA’s impact in India
Water 26 million rural people with improved water supply, thanks largely to an approach that
empowered rural communities to construct and operate their own water supply systems
across 10 operations.
Rural livelihoods 45 million poor women with improved livelihoods through self-help groups.
US$20 billion accessed from formal finance institutions in the last five years alone.
Health 2.6 million estimated lives saved under IDA-supported national Tuberculosis Control Program.
15 million people diagnosed and treated by the program to which IDA contributed.
Roads 24,200 km of all-weather rural roads built or rehabilitated since 2004.
Agriculture 390,000 hectares of barren or unproductive sodic land reclaimed.
Education 20 million out-of-school children enrolled through India’s Education for All Program, to which
IDA contributed over 15 years.
The IDA-India partnership underscores the value of concessional resources and the leveraging of the
World Bank’s knowledge and development experience. While IDA’s resources were small relative
to India’s financing needs, the lending and associated support was invaluable in spurring greater
effectiveness in critical national and state-level programs, for example, targeting primary education
or control of tuberculosis and HIV/AIDs. IDA’s support also helped maintain a long-term approach to
tackling development challenges in a vast and diverse country. Strong outcomes in health, education,
and agriculture reflect multiple projects often spanning decades, years that were essential in assessing
performance and adjusting policies and operations as needed.
The depth and breadth of IDA’s partnership with India and the lessons that emerged from its operations
there have benefited the World Bank enormously. Experience with programs in rural livelihoods,
community water management, and other sectors has informed IDA operations around the world. India
is now not only a newly-established IDA donor, it is also emerging as a source and partner for the Bank
for disseminating global knowledge about effective approaches to development.
16
IDA17 Retrospective: Maximizing Development Impact
HUMAN CAPITAL In Tanzania, the Education Program-for-Results
(PforR), launched in 2014, provided direct financing
to schools to buy textbooks, as well as other learning
EDUCATION materials and laboratory equipment. It supported
training for more than 50,000 teachers; and provided
Education is a powerful driver of development and is incentive grants to more than 600 of the most-
one of the strongest instruments for reducing poverty, improving schools. The Program’s reform incentives
improving health, gender equality, and stability. IDA led to more timely and reliable release of public
countries have made significant progress in making education sector finance, improved the collection
sure more children have a chance for education. For and publication of data on school performance, and
example, in IDA countries, 80 percent of children are enabled better staffing at schools. These reforms have
now enrolled in primary education, and the gender driven rapid improvements in learning outcomes, with
gap in enrollment has narrowed to just 1 percent. primary school examination pass rates more than
doubling from 30 percent to 68 percent between
IDA’s support to education in IDA17 aimed to 2012 and 2016. IDA investments of US$122 million were
accelerate learning for all with a focus on improved augmented by co-financing from the UK’s Department
learning outcomes to address increased demand for International Development (DFID) and the Swedish
for skills, post-basic education, and early childhood International Development Cooperation Agency
education (see box 4). IDA supported targeted yet (Sida).
comprehensive educational programs to increase
teacher competency, provide adequate instructional IDA helped recruit or train 7
materials, and strengthen accountability in the
schooling system. It also promoted use of innovative
million teachers during IDA17
approaches, such as technology-driven and distance
learning models so teachers can continue to be with In spite of strong results, progress still lags in many
their students even while upgrading their skills and countries. The number of students completing
knowledge. One of IDA’s major successes over the secondary education in IDA countries is still just 50
three-year period was helping recruit or train roughly 7 percent of those who start. During IDA17, investments
million teachers, an enormous leap from the 800,000 in education dropped by about 10 percent as compared
of IDA16. Gender sensitivity was a factor in 94 percent to the IDA16 period, due to reduced support to large
of all project designs, a major increase from 69 percent countries such as India and Pakistan, with India’s
at the start of IDA17. IDA also works on education in transition to IBRD status. However, education naturally
FCSs supporting communities in their role as first continues to be a high priority for IDA, reflected in
responders in emergencies (see “Many Faces of IDA” The World Development Report 2018 – Learning to
story on Haiti below). IDA’s investment and support Realize Education’s Promise. IDA continues in its role
aim to make education systems more responsive and as the largest implementer of the Global Partnership
adaptable in trying conditions, ensuring that youth get for Education, which works towards equitable quality
a chance to get an education even when their country education for all by 2030.
is struggling with conflict and fragility.
17
IDA17 Retrospective: Maximizing Development Impact
Box 4. IDA17’s Evolving Commitment to Education
In IDA17, IDA committed over US$5 billion towards education projects in its client countries, nearly
10 percent of total commitments (figure B4.1). IDA has provided over US$25 billion in support to the
education sector since IDA12, representing 50 percent of the WBG’s overall education financing (figure
B4.2). Through funding, knowledge, tools, and advisory support, IDA has consistently supported
countries in making progress towards education objectives. At the country level, IDA is a significant
source of education aid, contributing more than 40 percent of education development assistance for
five IDA countries and over 20 percent of such aid for 13 others over the last decade.
Figure B4.1. IDA Commitments to Education Sector Figure B4.2. IDA Contribution as Percentage of
Total WBG Commitments to Education Sector
7 100%
6
80%
5
60%
US$ billion
4
3 40%
2
20%
1
0%
0 IDA12 IDA13 IDA14 IDA15 IDA16 IDA17*
IDA12 IDA13 IDA14 IDA15 IDA16 IDA17
IDA GPE TF Other TFs IFC IBRD
Educ tion Sector Educ tion Sector
excludin Indi
Source: World Bank.
Note: GPE TF = Global Partnership for Education trust fund; Other TFs = other trust funds.
IDA’s support to education is evolving, as financing to early education and tertiary/vocational learning
is increasing relative to primary education. Primary education projects in IDA17 accounted for 25
percent of IDA education commitments, down from 39 percent in IDA12. Vocational skills and tertiary
initiatives in IDA17 represented 34 percent of education-related IDA commitments, a near doubling
from the 18 percent share reflected in IDA12.
A decline in IDA education-related financing (of around US$600 million) during IDA17 was largely driven
by a reduction in commitments to large, transitioning borrowers. Major declines in commitments to
Pakistan and India were partially compensated by increased IBRD financing for education. In contrast,
the largest increase in commitments was driven by a single Program-for-Results initiative in Nigeria,
with US$600 million in project commitments. Education projects can be “lumpy” and the top-five IDA
beneficiaries accounted for 60 percent of education commitments in IDA17. India remained the largest
education borrower in IDA17, accounting for 18 percent of total education commitments.
The 2018 World Development Report and the recently-launched Human Capital Project are also expected
to have a positive impact on increasing quality of education investments in IDA client countries. The
Human Capital Project is an accelerated effort to encourage investment in people as a critical step to
boosting inclusive economic growth and ending extreme poverty and will launch in 2018.
18
IDA17 Retrospective: Maximizing Development Impact
The Many Faces of IDA: Haiti
Haiti has sought to rebuild the nation’s
education system after the devastation of
the 2010 earthquake, focusing on making
schools more accessible and improving
the quality of education. The Education
for All Project directly benefited more
than 900,000 children. Among them is
Jessica Prudent, an 11-year-old student:
“I really like French, social science, and
math…I would like to be a nurse so that if
someone in my family is ill, I can care for
them. To succeed, I have to finish school.
Photo: A classroom in Haiti, where the government is rebuilding its
education system. I must study a lot to move to the next
class. The Education for All Program has
Click here for more on the Haiti – enabled me to get this far. Without it, I
Education for All project. don’t know where I would be….”
HEALTH IDA health investments are complemented by the
Pandemic Emergency Financing Facility, an innovative
IDA is committed to helping governments achieve insurance-based mechanism that helps countries
universal health coverage by 2030—essentially the respond to rare, high-severity disease outbreaks
same objective as the third Sustainable Development to prevent pandemics (see box 25), and the Global
Goal—which has the potential to transform the health Financing Facility in support of Every Woman, Every
and well-being of individuals and societies. IDA17 Child, which supports priority investments to improve
stepped up health financing by about 50 percent maternal and child health outcomes.
to US$4.6 billion from US$3.1 billion over the IDA16
period. IDA-funded operations provided essential IDA’s work with its partners on health emergencies
health, nutrition, and population services to 263.4 has proven its adaptability and its capacity in bringing
million people during IDA17, substantially more than financial and technical resources to bear, quickly and
the target of 63-65 million set at the start of the period. effectively. During the Ebola virus outbreak in Guinea,
Liberia, and Sierra Leone, IDA provided emergency
In spite of significant progress in the health situation support through a US$518-million package, including
in IDA countries, many of them still face large US$390 million in grants from the Crisis Response
coverage gaps, in particular in poor and marginalized Window (CRW). The project in support of people
communities. Universal health security means affected by Ebola was designed in just 36 days,
protecting everybody, not merely because it is the and disbursements were made only nine days after
equitable thing to do, but because with infectious approval. Such speed was essential, as the world was
diseases, health security can only be achieved if facing the worst outbreak in the history of the disease,
everyone is protected. It both depends on and infecting about 28,000 people and killing over 11,000
complements broader efforts to strengthen health of them. To assist the affected countries, IDA financed
systems and make them more resilient, one reason essential supplies and drugs, personal protective
why IDA is supporting broader health systems across equipment and infection prevention control materials,
all relevant sectors. health worker training, hazard pay and death benefits
19
IDA17 Retrospective: Maximizing Development Impact
to Ebola health workers and volunteers, contact the possible future need to respond to such events,
tracing, vehicles, data management equipment, the eligibility criteria for CRW were expanded to
and door-to-door public health education outreach. cover public health emergencies and epidemics
The Ebola epidemic exposed the weaknesses in in IDA countries that are of potential international
the countries’ health and public health systems, importance.
in addition to their emergency response capacity.
Indeed, all three countries’ hospitals and clinics were Similarly, in response to the severe conflict in Yemen,
rapidly overwhelmed by the influx of Ebola cases IDA looked for ways to speed its assistance to sustain
and the catastrophic loss of health workers to the and protect people most at risk. The answer was to
disease. Accordingly, after the epidemic, support was work through the World Health Organization (WHO)
provided to accelerate and sustain the recovery of and UNICEF as implementing partners. Building on
health systems in those countries. Building on these previously successful initiatives in Yemen’s health
experiences with using CRW resources for Ebola and sector, the World Bank, WHO, and UNICEF relied on
The Many Faces of IDA: Senegal
Ndeye Ngom lives in a village in the Fatick region of Senegal where the IDA-financed Nutrition
Enhancement Program introduced monthly weighing sessions for children to ensure they are growing
properly.
“I kind of panicked when they told me the baby is malnourished. This is not a disease we know,”
Ndeye says about finding out her daughter was underweight. However, following the session, Ndeye
was taught how to make a special porridge as a complementary food to help Khady Faye, 9 months,
recover quickly.
At the start of the millennium, Senegal experienced widespread malnutrition, with stunting affecting
as many as 30 percent of children under 5 years of age. In response, the Government of Senegal—
with support from IDA —shifted its approach on nutrition to a community-based, holistic strategy.
Through the program, the Senegalese government provides a range of services that includes health
education, breastfeeding promotion, counseling on infant and young child feeding, monthly weighing
sessions, micronutrient supplementation, conditional cash transfers, targeted food security support,
and more. Today, the stunting prevalence in Senegal has fallen to 19 percent, making it one of the
lowest in Sub-Saharan Africa. For children like Khady, Senegal’s decisive steps and clear prioritization
to reduce stunting has paved the way for what could be a dramatic improvement for their prospects.
Click here for more details on the Nutrition
Enhancement Program in Senegal. Click
here for more details about the program’s
impact and the importance of the World
Bank’s nutrition work.
Photo: Ndeye Ngom and her daughter, Khady Faye.
20
IDA17 Retrospective: Maximizing Development Impact
Nearly 7 million Yemenis have received access to essential health,
nutrition, and population services (60 percent of whom were female,
and nearly 80 percent children under the age of five).
each organization’s unique strengths to provide timely, In spite of a doubling of countries with social
essential services to the Yemeni population. The need protection systems in place since 2000 (to 149),
in Yemen is acute. Nearly 50,000 Yemenis have coverage by social protection schemes remains a
been killed or wounded, over three million people are global challenge, as only one in every five poor people
internally displaced, and 14 million people face food in the lowest-income countries is covered by any
insecurity. A lack of sufficient access to health care form of social protection. Building effective safety
facilities has compounded this crisis, contributing to nets is most difficult in low-income countries due
a sharp rise in cholera cases following the first reports to higher proportions of populations who are poor,
in October 2016. In response, IDA approved grants weak capacities to design and maintain effective and
totaling US$200 million to help deliver critically- scalable social protection schemes, and limited public
needed services to Yemenis most affected by the finances to underwrite these programs.
conflict, while at the same time preserving the capacity
of Yemen’s health system. Nearly 7 million Yemenis To address these tough challenges, total spending
have received access to essential health, nutrition, and on social protection has been on the rise in both
population services (60 percent of whom were female, low- and middle-income countries. Accordingly,
and nearly 80 percent children under the age of five). IDA17 increased social protection financing to US$6.3
billion, from US$4.4 billion in IDA16. IDA financing
SOCIAL PROTECTION helps create basic infrastructure for delivery of
social protection programs such as social registries,
IDA supports social protection and labor programs as poverty targeting mechanisms, payment systems to
a central part of its mission to reduce poverty through deliver cash transfers to beneficiaries, management
sustainable and inclusive growth. IDA17 assisted information, monitoring and evaluation systems. These
countries to move toward more harmonized social investments leverage public funding for long-term and
protection systems to improve resilience to shocks more inclusive social protection and labor programs.
and help their populations become more productive Many countries in Africa are introducing flagship
through investment in human capital and access to social safety net programs and are rapidly expanding
jobs and opportunity. Social protection programs their coverage. In Tanzania, the Productive Safety
under IDA17 reached 23.7 million beneficiaries, of Net Program had grown to cover 10 percent of the
which 4.1 million people in FCSs, outstripping its initial population in 2016 from 2 percent in 2014. In Senegal,
target of 1.5 to 5 million people. IDA programs help the National Cash Transfer Program has expanded to
individuals and families manage risk, cope with chronic 16 percent of population from 3 percent in four years.
or transitional poverty, and find better livelihoods and IDA, in partnership with other development partners,
jobs. IDA’s work embraces evidence-based knowledge also launched the Inter-Agency Social Protection
and financing solutions including: social safety nets in Assessments, practical tools that help countries
the form of cash transfers, public works programs, improve their social protection systems by analyzing
and fee waivers; employment services and active their strengths and weaknesses and offering options
labor market programs; old-age pensions, social care for further action.
and disability services.
21
IDA17 Retrospective: Maximizing Development Impact
The Many Faces of IDA: Pakistan
Social protection can take many forms and can combine with other services to provide the greatest
assistance to people most in need. In Pakistan, IDA support has provided cash grants, to support
families who were temporarily displaced as a result of security operations launched by the Government
in Khyber Pakhtunkhwa and the Federally Administered Tribal Areas (FATA) to root out the local
pockets of militants.
Launched in 2015, the IDA-financed FATA Temporarily Displaced Persons Emergency Recovery Project
helps facilitate the return and rehabilitation of displaced families through an early recovery cash grant
program. The program provides a one-time grant of US$350 per family and a livelihood support
grant of US$160 per family in four monthly installments of US$40. In addition, to encourage long-term
improvement in children’s health, families are provided with a cash grant of US$75 and immunization,
screening, and referral services. The program has adapted and heavily drawn from earlier experiences
with the use of innovative identification systems and biometric verification for enrolment, technology-
based payment systems through debit/automated teller machine (ATM) cards, and grievance
management. The program is not only a step forward towards strengthening emergency response
through safety net delivery systems but is also conceived as an adaptive safety net.
The program has helped 340,000 registered families of the temporarily displaced persons by
providing them with unconditional cash transfers, and 300,000 families with children between 0-2
years of age, offering them with child health sensitive conditional cash transfers. In addition, the safety
net delivery systems built through this project helped enhance the capacity of the government to
better respond to future crises.
Click here for more on the FATA
Temporarily Displaced Persons Emergency
Recovery Project.
The program has helped 340,000
temporarily displaced families by
providing them with unconditional
cash transfers.
AGRICULTURE incomes among the poorest people compared to other
sectors. Providing the food needed in growing cities
can also offer significant prospects for agribusiness
Agricultural development is one of the most powerful development and job growth in the broader food
tools to end extreme poverty and boost shared system.
prosperity through job creation in the farm and rural
non-farm sectors. Eighty percent of the poor live Agriculture development is critical to feed a
in rural areas and most rely on agriculture for their projected 9.7 billion people by 2050 and reduce
livelihoods. Most of the income gains needed to end undernourishment more quickly. Meeting the rising
poverty by 2030 will therefore need to come from food demand and ending hunger and food insecurity
activities in rural areas. Growth in the agriculture requires improving agricultural productivity to
sector is two- to four-times more effective in raising deliver adequate, nutritious and safe food, bolstering
22
IDA17 Retrospective: Maximizing Development Impact
The Many Faces of IDA: West Africa
“When we harvest the beans, we sell them to the cooperative. They offer us a higher price than the
market, and they pay on the spot,” says farmer Fatou Yalindiaye, of Senegal. “We also have a surplus
at home to feed our family and we are able to feed our livestock with the hay from the harvested
plants.”
Climate change has hit farmers hard in parts of West Africa. Shorter and more erratic rainy seasons
and more frequent extreme weather events—such as droughts and floods—are already impacting
harvests. Despite long days of back-breaking work, many farmers are no longer able to harvest
enough for their families. And according to projections, climate change could cut yields even more –
by as much as 25 percent in the future.
The IDA-funded West Africa Agricultural Productivity Program (WAAPP), which works to build a food
system to feed every West African, is making agriculture more climate-smart across 13 West African
countries. This project has developed and distributed 160 climate-smart crop varieties, provided
climate-smart technologies, and trained farmers on climate-smart practices.
Farmers are learning climate-smart techniques such as composting and agroforestry, and getting
access to technologies like more efficient water harvesting systems. WAAPP assistance has helped
around 5.7 million West African farmers be more productive, resilient, and deliver climate-smart
outcomes such as lower greenhouse gas emissions—which is important since agriculture is also a
major part of the climate problem and generates 19 to 29 percent of total greenhouse gas emissions.
Click here for more about the impacts of
this program and here for project details
and documents.
Photo: Fatou Yalindiaye (left) and his family sharing a stew
made using a new variety of drought-resistent, high-yield
cowpea.
resilience to climate change, and lowering greenhouse IDA leveraged its support to agriculture by acting
gas emissions. IDA17 maintained a strong investment through three key partnerships: (i) Support to the
in agriculture at US$7.4 billion, compared to US$7.1 Consultative Group on International Agricultural
billion in IDA16 and US$5.6 billion in IDA15. Setting out Research (CGIAR) helps scale up proven capacity to
to benefit between 19-23 million people, the range of generate improved technologies and knowledge to
IDA17 activities ultimately reached 36.5 million people enhance food security in IDA countries; (ii) The Global
(of which 17.1 million were female). These included Agriculture and Food Security Program (GAFSP),
investments in climate-smart agriculture, food quality, hosted by the World Bank since 2010, provides public
agribusiness and value chains, rural livelihoods, and and private financing for agriculture in IDA countries
agricultural employment. to raise incomes and reduce hunger; (iii) Support
to the Agricultural Market Information Systems, an
23
IDA17 Retrospective: Maximizing Development Impact
inter-agency platform, helps enhance global food considering that: transport accounts for about 23
market transparency and facilitate coordinated policy percent of the world’s energy-related CO2 emissions;
responses across Group of 20 (G20) countries for cities will be home to some 5.4 billion residents by 2050;
global food security. and the number of vehicles on the road is expected to
double to 2 billion by 2050. Today, an estimated one
In Bangladesh, where 70 percent of the poor live billion people in low-income countries still lack access
in rural areas, with IDA’s support, about 1.5 million to an all-weather road, while high mobility costs cut
farmers adopted over 40 demonstrated technologies the disposable income of the poor who often lack
that helped raise farm productivity and incomes reliable and affordable public transportation.
through the use of improved varieties, post-harvest
technologies, and better farm product pricing
via commodity collection and marketing centers.
This helped boost productivity improvements in IDA17 supported works that built,
Bangladesh’s agricultural areas from 14 percent to
repaired, or upgraded 61,054 kilometers
52 percent for crops, and by over 50 percent for
livestock and fisheries. Farm incomes increased by of rural and non-rural roads.
over 47 percent for the poorest smallholder farmers.
New and improved post-harvest technologies helped
reduce post-harvest loss of high value commodities.
In developing countries, public officials, businesses,
and citizens are also working together to harness
the transformative power of digital development to
INFRASTRUCTURE make services more efficient, to catalyze economic
development, and strengthen social networks. IDA’s
work on digital development focused on mainstreaming
TRANSPORT AND DIGITAL DEVELOPMENT information and communication technology (ICT)
across sectors through scaling up digital connectivity
Transport is a crucial driver of economic and social and technology innovation for competitiveness, service
development, bringing opportunities for the poor and delivery, and more accountable and open governance.
enabling economies to be more competitive. Transport More than 75 percent of people around the world now
infrastructure connects people to jobs, education, have access to a cell phone, with the number of global
and health services; it enables the supply of goods mobile-cellular subscriptions quickly approaching 7
and services around the world, and allows people to billion. The IDA17-approved Digital Malawi Program
interact and generate the knowledge and solutions that Phase 1 is supporting investments to increase access
foster long-term growth. Rural roads, for example, can of citizens, government, and businesses to affordable,
help prevent maternal deaths through timely access high-quality internet services and to build the core
to childbirth-related care, boost girls’ enrolment in infrastructure to support digital public service delivery.
school, and increase and diversify farmers’ incomes by
connecting them to markets. IDA17 supported works Overall, IDA17 work in the transport sector focused
that built, repaired, or upgraded 61,054 kilometers of on four primary goals: universal access; efficiency,
rural and non-rural roads, well beyond its target for safety, and green mobility; building and maintaining
the period of 40,000 – 50,000 kilometers. interurban and rural roads; and implementation of the
key initiatives outlined in the 2016 World Development
This work reflects the understanding that transport Report: Digital Dividends.
is at the heart of critical development challenges,
24
IDA17 Retrospective: Maximizing Development Impact
The Many Faces of IDA: Kiribati
“Today, I feel that the patients we transport
feel more comfortable because the road is
in a much better condition,” says Tenneke
Matireei, an ambulance driver in Kiribati. “Our
fleet of ambulances will also last longer now
that the road is complete because back then
they would not last a year before breaking
down.”
In Kiribati—where a single route serves as a
vital link for the 60,000 people who call South
Photo: Tenneke Matireei, a local ambulance driver in Kiribati. Tarawa home—the IDA-financed Kiribati
Road Rehabilitation Project rehabilitated 48.5
kilometers of road, providing safe, all-weather
access between the main town of Betio and
Click here for more on the Kiribati Road the airport at Bonriki. The design included the
Rehabilitation Project.
installation of footpaths, improved drainage,
speed humps, solar street lighting, and road
signage, all to improve user safety. It links
the communities of the atoll to social services, including government, education, health, the airport,
the port, local wharves, markets, churches, non-governmental organizations, and businesses. This
single project also shows how IDA’s participation can draw in support from other donors; the Asian
Development Bank and the Australian Department of Foreign Affairs and Trade collaborated in
funding the rehabilitation of the road.
Main road before… …and after IDA-backed improvements.
25
IDA17 Retrospective: Maximizing Development Impact
During IDA17, IDA-financed operations provided access
to electricity to about 35 million people.
In Tanzania, IDA helped city residents embrace new rapid Water is at the center of climate change, with impacts
transit services. Since opening in May 2016, the number felt by different countries and areas of economic
of commuters using Dar es Salaam’s Bus Rapid Transit activity through rainfall, snowmelt, storm surges,
system had quickly grown to 40.1 million, or an average of and rising seas. A considerable proportion of natural
178,000 riders a day by August 2017. The new bus system disasters in developing countries, such as floods,
was financed by IDA to support Tanzania’s economic droughts and cyclones, are related to water. IDA17
growth and provide reliable, cost-effective public investments, such as those above, were driven by the
transport. It serves as a catalyst for businesses, which WBG’s vision for a Water-Secure World for All and
have sprouted up around terminals and in previously supported clients overcome water-related challenges
inaccessible areas of Tanzania’s commercial capital, vis-à-vis climate change, food security, urban
creating jobs and increasing tax revenue. The operation, development, disaster risk management, health, and
the Dar es Salaam Urban Transport Improvement Project, energy.
is also supporting gender-responsive design features,
such as the establishment of a mobile phone-based ENERGY
gender harassment reporting system and mapping to
enable authorities to investigate and take appropriate Today, more than one billion people live without
action on any abuse or violence against women when electricity, which is an improvement since 2012.
using public transport. Furthermore, the project has Another 3 billion cook or heat their homes with
integrated training of women to become drivers in this polluting fuels, resulting in indoor and outdoor air
male dominated profession. pollution that causes about 4.3 million deaths each
year. During IDA17, IDA-financed operations provided
WATER AND SANITATION access to electricity to about 35 million people,
surpassing the performance standard of 15-20 million
Water is at the center of economic and social people. Direct access (defined as the number of
development; it is vital to maintain health, grow food, people who benefited from new grid-based or off-grid
manage the environment, and create jobs. Despite household connections) increased from 23.2 million in
water’s importance, over 663 million people in the IDA16 to 25.7 million in the IDA17 period, while inferred
world still lack access to improved drinking water access (the number of people who benefited from
sources. However, increasing access is not enough. Bank-funded generation capacity) increased from 6
Meeting IDA17 targets, IDA-financed operations million to 9 million over the same period.
provided 34.2 million people with improved water
sources—including 9.2 million in FCSs—and a further IDA further completed the construction or
14.5 million people with improved sanitation facilities. rehabilitation of about 1.5 gigawatts of generation
capacity of renewable energy (compared with
• In Ethiopia, a project focused on water supply, 1 gigawatt completed in the IDA16 period). IDA
sanitation and hygiene—one of the largest IDA- contributed to more than 4.3 million megawatt hours
funded operations in the sector—helped 2.4 million of projected lifetime energy savings in the IDA17
people gain access to water, and 1.8 million people period, which dwarfs the 970,000 megawatt hours
enjoy improved access to sanitation. of projected lifetime energy savings achieved in the
IDA16 period.
• In Tanzania, safe water supplies were provided to
over 12 million people, including an estimated 7 IDA’s energy strategy, detailed in a 2013 directions
million women. Improved sanitation services were paper,17 mirrors the objectives of the Sustainable
provided to over 5 million people. The Tanzania Energy for All Initiative and the Sustainable
program’s community-driven development Development Goal 7: achieving universal access,
approach also allowed primary beneficiaries to accelerating improvements in energy efficiency, and
manage their own water and sanitation facilities doubling the global share of renewable energy by
and participate in water resources management. 2030. IDA17 engagement in the energy sector has
17 World Bank. 2013. Toward a Sustainable Energy Future for All: Directions for the World Bank Group’s Energy Sector. Washington, DC:
World Bank.
26
IDA17 Retrospective: Maximizing Development Impact
helped client countries secure the affordable, reliable, IDA17 helped clients overcome the trade obstacles
and sustainable energy supply needed to end extreme they face, including by providing clients advice on:
poverty and promote shared prosperity. This required elimination of unnecessary non-tariff measures;
a concerted push on sustainable options for energy poverty and labor impacts of trade policies and
access, including solar and wind, on-grid and off- shocks; global and regional integration, including
grid, as well as other viable, low-carbon solutions that free trade agreement negotiations and World Trade
reflect every country’s unique circumstances. Organization accession and participation; and policies
to enhance trade competitiveness and help clients
In Bangladesh, for example, with IDA’s support, one reap gains from openness to trade and manage
million traditional stoves were replaced by affordable, adjustments to external shocks. IDA17 also helped its
user-friendly, improved stoves, and at a pace that was clients strengthen trade corridors, and to enhance
almost two years ahead of schedule. connectivity between firms, markets, and consumers.
Altogether, IDA17 stepped up its efforts to further the
IDA support also made a large difference in increasing trade agenda, including by increasing its active trade
access to electricity in Rwanda. Far surpassing its portfolio to US$2.7 billion at the end of IDA17 from
original targets, the number of households connected US$1.6 billion at the outset.
to electricity through the national grid increased to
755,340 (equivalent to a national access rate of almost IDA financed the Governance for Competitiveness
32 percent) from about 110,000 (or 6 percent) in 2009 Technical Assistance Project for Rwanda, which helped
(also see story below for an example of the project’s position the country as one of East Africa’s premier
benefits). business tourism locations. With IDA support, the
Rwanda Convention Bureau was established in 2014,
a central coordination body for meetings, incentives,
conferences, and events, that is the first such facility
FINANCE, INDUSTRY, in the region. Between 2012 and 2016, the Convention
Bureau directly engaged in organizing high profile
AND TRADE events such as the World Economic Forum, the Global
African Investment Summit, the African Union Summit,
and Coca-Cola’s annual continental corporate meeting.
TRADE AND COMPETITIVENESS The Convention Bureau led to new revenues exceeding
US$37 million in 2015 and US$47 million in 2016.
Evidence shows that countries open to international
trade tend to grow faster and provide more FINANCE AND MARKETS
opportunities to their populations. World trade has
only partially recovered from the deceleration over Developing nations will require US$4 trillion of
the 2000s and the global financial crisis. IDA countries investment to achieve the SDGs by 2030. Capital
continue to seek new avenues to deepen integration markets will play a key role for farmers, businesses,
while making trade work for the poor and addressing pensioners, or potential infrastructure investors by
other global challenges (such as climate change and providing long-term finance and risk management
the refugee crisis) that complicate country efforts but tools. IDA, in close collaboration with the IFC,
have also offered new opportunities for the private champions more robust financial systems to foster
sector. IDA helps its client countries improve their investor confidence, savings mobilization, and good
access to developed country markets and enhance governance. IDA17 boosted financial stability, as well
their participation in the world economy. as long-term finance and risk management, in IDA
countries through activities that included capital
Developing countries also struggle with indirect markets, infrastructure finance, housing finance,
factors that hinder their access to global markets, such pensions and insurance, agriculture and rural finance,
as anti-competitive business practices, regulatory and disaster risk finance. In addition, IDA supported
environments that are unfavorable to business growth financial inclusion, which was identified as an enabler
and investment, or limited infrastructure capacity. for seven of the 17 SDGs.
Even a country with liberal and transparent trade
policy suffers if its markets are not connected, and In Mongolia, an IDA-backed program is supporting
many of the “bottom billion” live in countries—or Mongolian small and medium enterprises (SMEs) in
regions of countries—that are landlocked, remote, or the non-mining sectors to strengthen their export
otherwise ill-served by international trade links. capabilities and expand access to export markets.
A web-based pledge-notice registry was launched
27
IDA17 Retrospective: Maximizing Development Impact
in February 2017, enabling creditors to search for are accessible to middle-, lower- and informal-income
existing interests on movable assets that they intend households. The Nigerian Mortgage Refinance Facility
to use as collateral and to file security interest on was developed as part of the wider Nigeria Housing
their approved collaterals. In addition, the IFC- Finance Project supported by a US$300 million IDA
supported Law on Tangible and Intangible Movable loan. The facility completed its first bond issue in
Property Pledge went into effect on March 1, 2017. July 2015, supported by a government guarantee. In
The new law, along with the registry, allows SMEs to Tanzania, an IDA housing finance project created the
offer moveable assets such as accounts receivable, Tanzania Mortgage Refinance Company as part of a
inventory, livestock, equipment, and future income as broader push to help grow the housing microfinance
collateral to banks; a major move to improve access sector and expand the supply of affordable housing.
to finance for SMEs. The system also reduces the need
for paper documents and notifies creation of pledge- IDA has also embraced the opportunities promised
rights to existing and prospective lenders. To date, through new and innovative financial technology.
around 90,000 pledge-notices have been registered, In Ethiopia and Madagascar, IDA supports digital
of which: 38 percent for equipment, 24 percent for payments and wealth storage industries that
livestock, 5.4 percent for account receivables, and 2 dramatically increase inclusion.
percent for vehicles. Women account for 24 percent
of the total borrowers.
In Senegal, the IDA-financed Multi-Sectoral Structural
Reform Development Policy Financing Project is
TACKLING THE TOUGHEST
promoting good governance and supporting more
equitable access to infrastructure services to attract
private investment and improve governance. The
GLOBAL CHALLENGES
program focused on removing the key bottlenecks in From its support for climate resilience to the creation
two sectors critical for inclusive growth, setting the of jobs to bring former combatants back into society,
stage for increased private sector participation in IDA rallies others to jointly confront tough issues for the
electricity generation and encouraging the entry of common good and helps make the world more secure.
new private internet service providers. The reforms No other international institution has the mandate,
have been complemented by public investment cross-sector knowledge, and resources to respond
and incentives to ensure a more equitable access to to complex global challenges with an exclusive focus
infrastructure services, which will help to narrow the on the world’s poorest countries. In our increasingly
very large gap in reliable access to electricity and ICT interconnected world, investments in IDA countries
between urban and rural areas. Moreover, the reforms bring positive spillovers for the global community,
will help the country shift toward a cleaner energy especially in areas affected by conflict and fragility,
mix, bringing important benefits to the country over contributing to global peace and security.
the long-term.
IDA’s main channels for addressing cross-cutting,
IDA has led efforts on credit registries under a variety global issues that affect all countries are its operations
of situations. In Afghanistan, IDA supported the first on the ground, its dialogues and partnerships with
credit registry, which had generated US$1.1 billion client countries and other organizations, and through
of financing as of June 2016. The credit registry has World Bank strategies, action plans, and systems. This
seen more than 122,000 borrowers sign up so far section provides examples of how IDA’s work on the
(20 percent are women). Some 54 entities, including ground addresses these global challenges in ways that
10 microfinance institutions are providing data and benefit IDA countries and the global community.
obtaining credit reports electronically. In Liberia, with
support of IDA, a collateral registry was launched during CLIMATE AND DISASTER RISK MANAGEMENT
the Ebola crisis in 2014. In less than a year, US$227
million worth of loans were registered. Additionally, Climate change presents a clear, near-term threat to
Moldova’s new legal framework for insolvency— poverty elimination efforts. Poor people and poor
supported by IDA knowledge and financing—resulted countries are vulnerable to a wide range of climate-
in a 10 percent increase in recovery rates by creditors related shocks: natural disasters that destroy assets
within three years. and livelihoods; waterborne diseases and pests that
become more prevalent during heat waves, floods, or
IDA focuses on helping client countries develop deep, droughts; crop failures from reduced rainfall; and spikes
resilient, and affordable housing finance markets that in food prices that follow extreme weather events.
28
IDA17 Retrospective: Maximizing Development Impact
In a rapidly urbanizing world, cities are increasingly
prone to natural hazards and climate shocks and IDA
is working with countries to address these challenges.
From 2008 to 2017, nearly 4.7 million IDA17 saw approval of the Malawi Floods Emergency
people in Bangladesh benefited from Recovery Project, which takes a programmatic
construction and repair of hundreds approach to tackle not only immediate recovery after
floods but also to address the long-term needs of
of multipurpose disaster shelters and
affected communities. The project merges livelihood
improved early warning systems. restoration and economic recovery with climate
resilience, offering food security, systematic disaster
In light of the global trend toward more frequent and management, infrastructure rehabilitation, and other
intense disasters, better management of such risks resilient upgrades.
– including those arising from climate change – is
increasingly at the core of IDA’s work, which focuses IDA17 introduced various disruptive innovations that
on five key areas: 1) understanding risk, 2) reducing risk, bridge the gap between technology and on-the-
3) improving emergency preparedness, 4) providing ground user needs to build resilience against climate
disaster risk financing, and 5) supporting emergency change, thereby improving operational quality (see
recovery. During IDA17, client demand for disaster risk box 15). For example, a new system in Burkina Faso
management financing and knowledge services has harnesses cellular network signals to detect rainfall
continued to be strong, driven by a combination of to inform flood preparedness. In Sri Lanka, mobile
increased awareness and understanding of disaster weather stations, constructed using open-source
risk and the unfortunate continuation of large-scale hardware and software, use SMS data to inform water
catastrophes, like the Nepal Earthquake in 2015. reservoir managers.
IDA is a key partner in helping developing countries meet CONFLICT AND FRAGILITY
their commitments under the Paris climate agreement.
Given that many IDA countries have low carbon emissions Conflict and fragility provide fertile ground for poverty
and yet are highly vulnerable to the effects of climate by undermining economic development and personal
change, IDA17 focused on ensuring that countries are security. Today, about 2 billion people live in countries
prepared to cope with such impacts by pioneering new where development outcomes are affected by fragility,
solutions, such as better weather data and forecasting, conflict, and violence (FCV). As the world’s poor
drought resistant crops, disaster insurance, cyclone- become concentrated in countries affected by conflict
resistant houses, and warning systems. and fragility–current estimates show that by 2030
roughly half of the world’s poor are expected to live in
IDA also helps countries mitigate the impacts of climate such countries–IDA’s work is becoming more urgent.
change by finding innovative ways to harness energy
from the sun, wind, and water, and to reduce carbon IDA17 supported countries affected by conflict and
emissions by helping to make industries more efficient fragility by providing financing and the knowledge
and sustainable. In Bangladesh, where two-thirds of the needed to rebuild resilient institutions and economies,
country is less than five meters above sea level, floods reducing the risks of fragility and conflict, and by
are increasingly damaging homes, farm production, putting in place the building blocks people need to
businesses and infrastructure. But with investments resume peaceful and productive lives. For example,
in improving capacity to respond to emergencies, the LONDO Project in the Central African Republic has
building resilient infrastructure and homes, and adapting helped create over 17,000 temporary jobs to maintain
farming systems, the country has become a model over 1,000 kilometers of roads. Operating in some of
for disaster preparedness and climate adaptation and the most remote areas of the country–including areas
mitigation. From 2008 to 2017, nearly 4.7 million people still under the control of armed groups–the project is
in Bangladesh benefited from construction and repair of bringing income and hope to citizens. “The money I
hundreds of multipurpose disaster shelters and improved earn helps me meet my needs and take care of my
early warning systems. Another successful program in family,” said Carine Data, a beneficiary of the project.
Bangladesh provided 2.2 million rural households with “My father is dead, so I depend on myself. I have been
access to electricity from renewable sources for 2.2 able to put a bit of money aside to buy a rickshaw
million households through an IDA-supported project once my contract expires. I plan to use the remainder
that provides solar home systems. to enroll in an evening class to prepare for my future.”
29
IDA17 Retrospective: Maximizing Development Impact
Even in fragile and conflict situations, IDA is there the Board approved the support on an exceptional
for the long haul, staying in a country after the basis to help both countries deal with a large influx
cameras leave and ensuring that results are sustained. of refugees from Syria. In 2017, the government of
For example, the National Solidarity Program in Jordan began implementing policies to attract new
Afghanistan helped establish more than 35,000 investment—and more jobs—to Jordan to help employ
democratically-elected community development more refugees and local citizens. In Lebanon, IDA
councils across the country’s 34 provinces. From 2003 support is helping the government improve the quality
to 2016, the councils identified and implemented tens of its public education system and expand access to
of thousands of smaller projects to provide access to Syrian refugee children.
electricity, water and sanitation, roads, and irrigation.
The project provided grants for 3,000 development
projects in Kandahar alone. CLIMATE AND DISASTER RISK MANAGEMENT
IDA is also helping countries improve lives and access IDA is a key partner during crises and emergencies.
to services for refugees and internally displaced people. IDA’s Crisis Response Window—further discussed
A special allocation of IDA17 resources is helping in chapter 2, section 5—supported severe, often
the governments of Jordan and Lebanon provide recurring crises that go beyond national scales, such
opportunities to Syrian refugees. Although both as the famine in East Africa, the conflict in Yemen, the
countries are not usually eligible for IDA resources, Ebola outbreak in West Africa, and earthquakes in
30
IDA17 Retrospective: Maximizing Development Impact
Haiti and Nepal in 2010 and 2015, respectively. In 2017, Overall, IDA is helping countries achieve significant
the CRW provided support to South Sudan, Kenya, results in promoting gender equality. In basic education,
Yemen, Ethiopia, and Somalia to respond to extensive the gender gap in IDA countries has narrowed to
drought and famine. In Ethiopia, support from IDA just 1 percent. In IDA17, more than 17 million women
and other donors since 2005 has helped build a large benefited from IDA-financed rural and agricultural
safety net system that has allowed the government development projects, nearly 12 million women were
to respond quickly to the drought. CRW funding in covered by social safety net programs, and more than
2017 helped the government expand the program to 23 million women received prenatal care during a visit
18.2 million people, providing food or cash transfers to to a healthcare provider.
vulnerable people. In addition to being able to rapidly
respond to the crisis, the safety net system is helping Many IDA operations address gender equality head
Ethiopia break a cycle of appeals for emergency food on–tackling issues that prevent women from getting
assistance. an education, staying healthy, and contributing equally
to economic growth. For example, more than 6,000
GENDER EQUALITY women in Ethiopia are benefiting from a special line
of credit to help female entrepreneurs grow their
No country, community, or economy can achieve its businesses. The funding is helping increase annual
potential or meet the challenges of the twenty-first business earnings by an average of nearly US$3,400.
century without the full and equal participation of
women and men, girls and boys. Failure to fully unleash IDA’s support has helped Bangladesh make remarkable
women’s productive potential represents a major progress in ensuring access to primary education for
missed opportunity, with significant consequences for both boys and girls. The country’s net enrollment rate
individuals, families, and economies. IDA countries face at the primary school level increased from 80 percent
wide gaps in economic opportunity, with women’s in 2000 to 98 percent in 2015, and Bangladesh has
labor force participation and job quality consistently achieved gender parity in access to education at the
trailing those of men. primary and secondary level. In East Africa’s Great
Lakes region, where conflict and violence against
women remain significant challenges, IDA is supporting
integrated health and counseling services, legal aid,
and economic opportunities for survivors of sexual
and gender-based violence. More than 22,000 women
have benefited from maternal and reproductive health
services and immediate and long-term support for
survivors.
31
IDA17 Retrospective: Maximizing Development Impact
SECTION 2: MAXIMIZING DEVELOPMENT IMPACT
IDA17’s overarching theme of ”Maximizing Development
Impact” acknowledges IDA’s determination to make
I. LEVERAGING PRIVATE
RESOURCES
the best use of scarce resources and its own policy
framework in support of the world’s development
ambitions. IDA17 served to calibrate IDA’s focus on
leveraging private investment, public resources, and
knowledge with greater effectiveness and efficiency. The Addis Ababa Agenda stressed the importance
It spurred IDA to strengthen IDA’s own instruments of leveraging and mobilizing resources, particularly
while emphasizing its value for money approach, its emphasizing that private capital should be a key
accountability to shareholders and clients, and its driver for growth, job creation, and realization of
alignment of resources to WBG goals and strategy. the SDGs.20 Private investment and foreign direct
IDA delivered on all policy actions underpinning investment are weak in many IDA countries, at 16
the goal of “Maximizing Development Impact”, as percent and 3 percent of GDP, respectively.21 Many
agreed with shareholders during IDA17 replenishment factors contribute to this: weak macroeconomic
consultations. Annex 1 presents a full overview of the and regulatory environments, vulnerable financial
status of policy commitments at the end of IDA17. sectors, perceived political risks, small market sizes,
high transport costs and infrastructure bottlenecks,
As part of the “Maximizing Development Impact” country risks that impact banks’ risk-weighted
agenda, and in line with international agreements on assets and available financing levels, and information
the SDGs and the Addis Ababa Action Agenda,18 IDA17 asymmetries and coordination problems.
moved to further leverage development spending as
a way to realize the “from billions to trillions” agenda.19 Recognizing that “Maximizing Development Impact”
This emphasis reflected the realities discussed in in IDA countries required a strong private sector
chapter 1: emerging global economic headwinds as contribution, IDA17 continued to provide a central
well as geopolitical pressures and shifts that together platform for support to this sector in IDA countries and
were constraining ODA commitments from many increased direct mobilization of private investments.
donor countries, at a time of heightened development Reflecting this commitment, between FY15-17,
challenges, growing demand, and the need to finance IDA invested a total of US$25.8 billion to support
the ambitious 2030 agenda. IDA17 anticipated these private sector development through policy and
conditions and ensured IDA was prepared to meet investment lending (figure 12). By providing a mix of
these challenges while getting more out of existing finance and policy-based operations, IDA supported
multilateral platforms and crowding in other sources work to improve regulatory quality, strengthen
of development financing. macroeconomic and structural policies, provide
quality infrastructure, and enhance labor market
and skills development. Additionally, much of IDA’s
support to infrastructure provides short-term jobs and
critical long-term conditions for private sector growth.
18 At the Third International Conference of Financing for Development, organized by the UN in July 2015.
19 In 2015, the WBG, together with the IMF and other multilateral development banks, outlined their commitment financing the effort for
the post-2015 development agenda and to scale up the amount of financing, moving from “billions” in official development assistance
to “trillions” in development investments of all kinds: public and private, national and global. Also see: World Bank. 2015. From Billions to
Trillions: Transforming Development Finance. Washington, DC: World Bank.
20 UN Sustainable Development Summit 2015, Also see: Transforming our World: the 2030 Agenda for Sustainable Development.
21 Sources: World Bank, based on World Development Indicators, International Development Statistics, and OECD/ Development Assistance
Committee Statistics in 2014.
32
IDA17 Retrospective: Maximizing Development Impact
Figure 12. IDA, IFC and MIGA Support to Private Sector Development (US$ billion)
50
$40.6
40
4.2 $37.7
$30.4 3.9
0.9
30 9.4 8.0 Excludes Indi , s the
$21.8 7.3 countr r du ted t
1.5 the end of IDA16.
20
6.5 MIGA
10 IFC
13.8 22.3 27.0 25.8
0 IDA
IDA14 IDA15 IDA16 IDA17
Source: World Bank Group.
Note 1: IDA amounts reflect commitments to all countries receiving IDA support, and IDA17 commitments therefore include exceptional transition
support to India. IFC and MIGA amounts reflect commitments to IDA eligible countries, and therefore IDA17 commitments exclude India, as the
country graduated from IDA at the end of IDA16.
Note 2: The slight dip from IDA16 to IDA17 is due to a number of once-in-a-generation projects in Pakistan, Africa and South Asia, such as a major
hydropower investment in Pakistan (Dasu Hydropower Phase I); a rural electrification investment in Bangladesh (Rural Electricity Transmission
and Distribution); and a large hydroelectric project in Eastern Africa (Regional Rusumo Falls Hydroelectric Project), all committed during IDA16.
Note 3: IDA supports IDA clients through loans mainly for public procurement of infrastructure projects, policy support to improve IDA countries’
business environment and guarantees to the private sector. IDA support covers the following sectors: water, sanitation and waste management;
transportation; energy and extractives; information and communication; industry, trade and services; and financial sector. IFC supports the private
sector directly mainly through loans and equity. MIGA support to private sector is through political risk insurance guarantees.
TACKLING CONSTRAINTS TO PRIVATE power sector) as its primary focus. MIGA estimates that
SECTOR DEVELOPMENT ON BOTH PUBLIC AND the total private financing catalyzed in IDA countries
PRIVATE SECTOR SIDES during IDA17 could reach as high as US$37.5 billion.
(For further details, see the companion paper on “IDA17
IDA’s sister organizations, IFC and MIGA, have also Support by Global Practices”).
stepped up their engagements in IDA countries. During
IDA17, IFC invested about US$ 8 billion on its own The “One WBG”—IDA together with IFC and MIGA
account—and taken into account mobilization22 from —has worked jointly to tackle constraints to private
other investors over US$14 billion—about US$1.2 billion sector development in both the public and private
more than in IDA16. About half was invested in Sub- sectors. Together, the WBG directly mobilized
Saharan Africa. The investments were primarily focused US$4.64 billion23 of private capital in IDA countries
on supporting financial institutions, infrastructure, and during the IDA17 period (US$1.1 billion in FY15, US$700
natural resources. IFC dedicated about US$400 million million in FY16, and US$2.84 billion in FY17).24
to advisory services in IDA countries, representing
63 percent of its overall advisory program funding IDA17 strengthened WBG collaboration through
over the IDA17 period. Over this time, MIGA issued the adoption of Joint Implementation Plans. These
about US$4 billion in guarantees for 35 projects in provide a country- and region-level, sector-based
IDA countries, similar to IDA16 commitments. MIGA platform for WBG institutions to synchronize support,
invested predominantly in East Asia and the Pacific and identify constraints, and catalyze private financing.
Sub-Saharan Africa, with infrastructure (especially the By the end of IDA17, 29 Joint Implementation Plans
22 Core Mobilization is defined as financing from entities other than IFC that becomes available to clients due to IFC’s direct involvement in
raising resources. This definition is different from “direct” mobilization defined in footnote 23 for WBG mobilization under the IDA17 RMS.
23 Based on calculations under the strict definition and methodology used for private capital directly mobilized. This is defined as financing from
private entities other than the WBG that becomes available to IDA clients at financial close due to the WBG’s active and direct involvement in
raising those resources. It excludes private capital attracted (or mobilized) by others international financial institutions, including IFC and MIGA.
24 This value represents financing from private entities other than the WBG that becomes available to IDA clients at financial close when the
WBG is contractually engaged in raising resources. To further improve the quantification of private capital mobilized to IDA countries, two
new and broader measures (“Private investment catalyzed by WB in IDA countries”, and “Total private mobilization of WBG-supported
operations/transactions in IDA countries”) have been introduced in the IDA18 RMS, based on the definitions and methodology developed
by the Multilateral Development Bank Task Force on Measuring Private Investment Catalyzation.
33
IDA17 Retrospective: Maximizing Development Impact
Box 5. Overcoming Complex Challenges through Joint Planning to Boost Mali’s Exports
In today’s global economy, each country needs to
make the most of every competitive advantage
but many struggle to translate home strengths
into export success. In Mali, IDA is striving to
help the government, agribusiness, and small-
scale farms in seizing opportunities to export
processed agriculture products, especially in the
mango and livestock sectors.
Progress requires cooperation, investment, and
support across many levels of the value chains
that underpin the mango and livestock sectors,
providing a perfect opportunity to showcase the concepts behind WBG’s Joint Implementation Plans.
The Mali Joint Implementation Plan underpins three key aims: to use large-scale pilot projects in Sikasso
and Kayes to demonstrate how partnerships between major agro-industry players and smallholder
farmers, combined with private investment, can strengthen the value chains; (ii) to leverage IDA
funding to deliver policy, regulatory, finance, infrastructure, and market gains; and (iii) to then repeat
and expand these approaches across the country.
This joint planning allows IDA and the IFC to partner in weaving together many complex strands with
a clear, comprehensive vision. In the mango value chain, IFC’s investment in a mango processing
company are facilitated by IDA projects that aim to make it easier for farmers and agribusinesses to
get raw materials, in sufficient quantities, quality and in the best time possible. At the same time, IDA is
helping boost smallholder farmer access to markets through improvements to 1,900 kms of roads, the
development of collection facilities, support to a high-tech overhaul of intermediation approaches, and
through campaigns to defeat fruit flies and promote good farming practices.
In the livestock industry, a proposed IFC investment in a modern slaughterhouse targeting exports
to West Africa ties in with IDA efforts to support cattle fattening, feeding, and irrigation in support of
animal feed production. At the same time, IDA is talking to stakeholders around key reforms that would
also underpin export success.
Mali’s mango value chain has a clear international competitive advantage but only 7 percent of total
production (12 percent of eligible varieties) were exported in 2016. It is also a major center in West
Africa for livestock rearing with over 30 percent of total livestock production but less than 0.5 percent
used for fattening purposes. IDA and IFC believe the Joint Implementation Plan draws on the strengths
of all actors – IDA, IFC, agribusinesses, farmers, and the government – to boost these results.
were operational in IDA countries, exceeding the Experience with Joint Implementation Plans
original target by almost 50 percent. Of these, 18 were emphasized the interdependency and synergies
implemented in Africa. Almost half of the plans focus of public and private sector interventions. Lessons
on energy projects, and almost a third on agribusiness included: the importance of recognizing the
activities. As expected, they have provided a structure complexity of joint project interventions; the need
for complex collaborations that include multiple and for an approach that embraces multiple teams (both
sequential interventions over extended periods, as seen client and WBG); the importance of a certain level of
in Mali, for example (see box 5). scale for efficiency; and taking a longer-term view of
the outlook of the sector. These lessons helped WBG
34
IDA17 Retrospective: Maximizing Development Impact
teams in their work and informed the broader WBG IDA’S EXPANDED GUARANTEES TOOLBOX
collaboration with countries and across transactions.
The WBG is now exploring ways to use this approach Guarantees remain an important vehicle for delivering
to implement new WBG diagnostic and programming IDA support, particularly to high-impact initiatives such
tools, such as Country Private Sector Diagnostics, and as infrastructure projects, and IDA17 introduced a public
it also serves to inform the new WBG “maximizing sector product to complement existing private sector
finance for development” approach. guarantees.25 This kind of support to governments and
state-owned enterprises strengthened private sector
confidence in the ability of these state actors to pay
and perform as expected. During IDA17, IDA approved
seven guarantee operations, including the first public
The Many Faces of IDA: Zambia
“For quite a long time, we’ve had quite a bit of interest from the private sector in terms of investing
in renewable energy in general, and in solar in particular,” says Andrew Chipwende, chief executive
officer at Industrial Development Corporation of Zambia. “We haven’t had the coherent structure
within which to implement this, (but now), with Scaling Solar, what we’ve been able to do is to develop
a coherent, transparent process that the investor and investing public, the private sector, are able to
work towards …the attainment of this 600-megawatt (MW) target, which has been set for renewable
energy in Zambia.”
Only about one-fourth of the population in Zambia has access to electricity. At the peak of a power
supply crisis in 2015-17, the country experienced up to 10 hours a day of “load shedding” or blackouts.
In response to this challenge and as part of the WBG’s Scaling Solar Energy Guarantee Project, IDA
and IFC collaborated to develop a standardized set of project documents to ensure proper risk
allocation between private and public sectors. The first pilot round for up to 100MW in Zambia has
brought a record 6 US cents per kilowatt hour for solar power in Africa. The auctions held in May 2016,
for two solar photo-voltaic plants of up to 50 MW each attracted some of the world’s top renewable
energy developers. Riding on the success of the first round, a second round of auctions is planned to
be launched for up to 300MW in 2018.
Following the success of IDA17 activities, a US$2.8-million guarantee was approved in 2017. It
will leverage approximately US$48 million in private sector-led investment that will support the
development of a 34-Megawatt peak solar photo-voltaic power plant.
Click here for more on the Scaling Solar
Energy Guarantee Project, and here for a
story about the groundbreaking auctions
that have created new solutions for
Zambia’s interest in solar energy.
25 IDA’s Board approved the new guarantee tool in December 2013, fulfilling its IDA17 commitment early. See Enhancing the World Bank’s
operational policy framework for guarantees, November 19, 2013.
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IDA17 Retrospective: Maximizing Development Impact
Box 6. Guarantees Close a Finance Gap in Ghana’s Efforts to Deliver
Affordable, Clean Energy
Ghana faces a shortage of reasonably-priced fuel for power generation and is turning to natural gas,
having already made the most of its hydropower potential. To help the country source natural gas from
offshore fields, IDA, IFC, and MIGA teamed to offer a range of guarantees and loans that leveraged a
further US$700 million from private lenders.
The Sankofa Oil and Gas Project is developed by two private investor sponsor groups—Eni of Italy and
Vitol of the Netherlands—working in partnership with Ghana National Petroleum Corporation, which
is both an equity investor and aggregator in reselling Sankofa gas to Ghana’s domestic power sector.
The project is expected to reduce Ghana’s carbon emissions and help it meet its international commitments
on climate mitigation, while ensuring it has a stable, efficient, and affordable source of energy.
To enable the Sankofa Oil and Gas Project, IDA provided a US$500 million payment guarantee
that supports timely payments for gas purchases by the Ghana National Petroleum Corporation,
complemented by an additional US$200 million enclave loan guarantee from IBRD. IFC provided
US$300 million in debt financing and MIGA approved a US$215-million guarantee.
sector loan guarantee, which provided an early sign on private financing and sustainable private sector
of confidence in this new line of support. The US$1.2 solutions to provide value for money and meet the
billion committed under these seven guarantees highest environmental, social, and fiscal responsibility
leveraged US$9.9 billion in private capital; a leverage standards. At the same time, it emphasizes retaining
factor of eight-times the IDA funds employed. (For scarce public financing for those areas where private
further details, see the companion paper on “IDA17 sector engagement is not optimal or available.
Support by Global Practices”.)
IFC will also reposition its advisory services to support
LOOKING AHEAD the market creation effort, aided by a new Advisory
Strategy and the Creating Markets Advisory Window.
IDA17 showcased and confirmed IDA’s ability to Advisory services will focus on targeting regulatory
attract private sector support for a range of projects barriers to investment, helping new and existing clients
worldwide. The new IFC-MIGA Private Sector Window build capacity to overcome investment constraints
of IDA18 should further enhance this record, supported and develop bankable projects. IFC will further build
by the WBG “maximizing finance for development” on proven advisory solutions that help governments
approach. IDA’s own engagements remain focused implement reforms; enable public-private partnership
on public sector interventions but as these efforts transactions; build standards and good practices
indicate, it recognizes there are opportunities for IDA across industries; and increase client performance.
to do more to directly incentivize and support private Another tool to help increase development impact
sector engagement in IDA countries. IFC and MIGA’s of IFC’s investments is the recently-introduced
experience with working in IDA frontier markets Anticipated Impact Measurement and Monitoring
showed that there is a need for well-targeted direct Framework. The framework assesses the development
public support, applied appropriately, to help mitigate impact of IFC’s operations along two main dimensions:
the high risks for private investments, address market project outcomes (indirect and direct impacts) and
failures, and promote public goods.26 The “maximizing contribution to market creation (catalyzed changes in
finance for development” approach encourages the market beyond those linked to the project.)
WBG cooperation to help countries maximize their
development resources, specifically by drawing
26 Also see WBG Collaboration: Proposal for an IFC-MIGA Private Sector Window in IDA18, IDA18 Replenishment Paper, June 8, 2016.
36
IDA17 Retrospective: Maximizing Development Impact
II. LEVERAGING PUBLIC STRONGER PUBLIC FINANCIAL MANAGEMENT
AND GOVERNANCE
RESOURCES Building on its past efforts to help countries improve
effectiveness and accountability in the use of their
Recognizing that societies can only be as productive public resources, IDA17 provided clients access
and resilient as their public institutions, IDA and its to a range of technical expertise in the field of
partners sharpened their efforts to ensure that public governance that has been gained in local settings
resources are mobilized and utilized for the greatest but that is augmented by access to the WBG global
possible impact. Weak institutions are at the heart of the knowledge base. The organizational restructuring
challenges many IDA clients face in poverty reduction. and the creation of Global Practices brought together
The inextricable link between poor governance and over 700 specialists from across the WBG that
persistent poverty is difficult to break, however, as work on implementation of financial management,
building and operating successful public institutions anticorruption and procurement with those who work
is a long-term challenge for governments, even in on systemic reforms of the public sector. Bringing
ideal circumstances. The complexity of this challenge these teams together has generated a more holistic
is compounded by the volatile conditions found in and integrated approach to our work in governance
many IDA countries (particularly in FCSs), where by linking upstream policy design with downstream
human security, social cohesion, political stability, and implementation issues. It has also allowed the
economic activity can be uncertain and volatile. IDA Governance Global Practice to tap more effectively
supports a broad array of activities that contribute into the deep professional and country knowledge of
to improved state institutions, public oversight, staff in the field.
and accountability, including those that promote
public feedback and citizen oversight, transparency Reflecting the centrality of governance issues to
programs, and rule-of-law and regulatory programs. development, the portfolio committed to public
These measures help to protect citizen rights and sector transparency and capacity continues to be the
security, encourage private sector growth, and public largest component of the World Bank’s governance
participation in efforts to spend public resources support to IDA countries. IDA17 delivered 28 projects
efficiently and effectively, and hold administrations worth around US$900 million that had significant
accountable for their performance. expenditure and finance management aspects and
it penned more than 200 studies focusing on related
systems and areas for future investment. Another
US$400 million from Bank-managed trust funds
augmented this work on public financial management.
Box 7. Modernizing and Streamlining Public Financial Management in Ethiopia
Among its 28 projects in support of stronger government financial systems, IDA provided a US$33
million credit to the Government of Ethiopia in 2016 to help its efforts to improve and modernize its
public expenditure management systems. The project helped Ethiopia strengthen the effectiveness of
internal control systems to ensure proper expenditure management. By streamlining and automating
financial management systems, the project improved budget planning and execution, payroll processing,
and financial reporting.
The project also improved the regulatory and institutional framework for procurement, which is a central
element of public expenditure. In addition to introducing a certification program for procurement staff,
the project enhanced the capacity of federal and regional procurement regulatory bodies in market
research, data collection, and performance monitoring.
37
IDA17 Retrospective: Maximizing Development Impact
The number of countries that strengthened tax policy and
administration with IDA17 support increased from 12 to 20.
To help IDA countries generate the money they need ENGAGING PARTNERS TO LEVERAGE PUBLIC
to better deliver services and strengthen institutions, RESOURCES
IDA17 helped efforts to support better tax policies
and administrative capacity through projects totaling IDA resources leveraged significant financial
US$44 million. In Bangladesh, for instance, the VAT contributions from governments and other
Improvement Program is working to increase the development partners. IDA17 period saw a significant
number of registered active value-added taxpayers, increase in co-financing from governments and
improve the transparency of tax administration, and other development partners. IDA’s share of total
boost tax intake as a proportion of GDP. The World project financing (including IDA, IBRD, borrowers and
Bank created a new Global Tax Team to further deepen partners) dropped to 51 percent in FY17 from 73 percent
analytical expertise and provide IDA countries and in FY15, while the share coming from others jumped
development partners with a central point to turn to to 49 percent from 27 percent in the same period
for issues around public resource management. The (figure 13). Regionally, the Africa region received the
Bank also teamed with the International Monetary Fund maximum total project financing, followed by South
(IMF) to provide clients a Tax Administration Diagnostic Asia, and East Asia and the Pacific. It is notable that in
Assessment Tool, which measures tax administration South Asia, co-financing from clients during the IDA17
performance and provides a global benchmark. period exceeded IDA financing (47 percent from IDA
and 50 percent from borrowers) as a result of two
ENGAGING CITIZENS TO MAKE PUBLIC PforR operations supporting large programs with
INSTITUTIONS MORE TRANSPARENT, counterpart funding of US$5.5 billion each.
ACCOUNTABLE, AND EFFECTIVE
Reflecting the complex challenges in supporting FCSs,
A country’s citizens play a vital role in holding public IDA significantly boosted its partnerships, particularly
institutions accountable and making them more with the UN. The World Bank channeled US$1.8 billion
effective and transparent, and IDA17 ensured they through UN agencies in IDA17 (compared with US$500
also have a say in IDA project design, particularly if million in IDA16 and US$1 billion in IDA15), with fragile
the project directly touches their livelihoods. This countries or those in conflict receiving 70 percent of
was the aim of the 2014 WBG Strategic Framework total UN contracts. Through partnering with the UN,
for Mainstreaming Citizen Engagement in Operations, IDA supported emergency operations in Yemen, and
which set out to find and adopt the best ways for operations in South Sudan and Haiti, as well as the
people to provide feedback on Bank projects. Today, response to the Ebola outbreak. Among UN agencies,
92 percent of projects include a beneficiary feedback UNICEF received the largest support at US$800
indicator in the results framework, compared to million and then the UN Development Programme at
38 percent at the beginning of the IDA17 cycle, and US$250 million.
almost 100 percent of projects were based on designs
that benefitted from public input compared to only 25 The World Bank’s collaboration with the UN in FCSs
percent in FY14. has been guided and improved by a new partnership
framework drafted in 2017. This strategy emphasizes
To further strengthen accountability in public a joint approach to analyzing country situations and
management, 27 IDA countries are participating in the planning World Bank and UN responses, ensuring
Global Partnership for Social Accountability, which they mesh with a country’s development plans. For
builds the capacities of civil society organizations example, seven pilot projects were created under a
and governments in gathering beneficiary feedback. UN-World Bank Joint Humanitarian-Development-
The Open Government Partnership also includes 17 Peace Initiative in the Central African Republic,
IDA countries that are committed to transparency, Cameroon, Guinea Bissau, Somalia, Sudan, Pakistan,
accountability, and citizen participation, and this and Yemen.
number is projected to grow during IDA18.
38
IDA17 Retrospective: Maximizing Development Impact
Figure 13. Project Co-financing
FY15 FY16 FY17
IBRD 2% IBRD 2% IBRD 2%
IDA P rtners 12% IDA 73% IDA P rtners 5% IDA 62% IDA P rtners 5% IDA 51%
Borrower Borrower Borrower
13% 31% 42%
IDA17 further stepped up partnerships with other have undertaken joint financing of operations in some
multilateral development banks, such as the African areas. An example of how IDA has partnered with
Development Bank (AfDB), ranging from exchanges ADB and other development actors is the Solomon
at the corporate level about financial innovations to Island’s Tina River Hydropower Development Project.
working closely on the ground. IDA and the African The US$240-million operation is co-financed by seven
Development Fund (AfDF) worked together in the other partners, including the ADB, which is expected
run up to IDA17 by exchanging ideas and experiences to provide co-financing of US$30 million. The project
on innovative approaches to financing development is slated to have wider transformational benefits well
and other topical issues affecting both institutions, beyond the power sector.
such as “graduation” from IDA to IBRD, the financial
terms offered by each institution to client countries, The emergence of the AIIB also presented a new
and ensuring debt sustainability. Both institutions partnership opportunity. IBRD, IDA, and the AIIB
are also collaborating on other continent-wide and signed a co-financing framework agreement soon
global partnerships, such as the Consultative Group after AIIB opened its doors in early 2016. Since
on International Agricultural Research (CGIAR), then, the AIIB and WBG have co-financed projects,
the Global Agriculture and Food Security Program including supporting power generation in Pakistan,
(GAFSP), and the Sustainable Energy for All initiative where AIIB provided US$300 million in co-financing
(see chapter 2, section 3 for further details). Project for the Tarbela Fourth Extension Hydropower Project.
collaboration includes, for example, in Nigeria, the At completion, the project will add 2,820 megawatts
Water Sector Reform Project III co-financed and with of capacity with clean, renewable, low-cost annual
a complementary project in Rivers State supported electricity generation of over 4,800 Gigawatt-hours.
by the AfDB. The two projects share a management
unit, financed by the AfDB. Close cooperation LOOKING AHEAD
was also central to the IDA-financed Regional and
Domestic Power Markets Development Project in the IDA17 experiences led to the new governance
Democratic Republic of Congo, which rehabilitates and institutions special theme in IDA18, and IDA is
power generating units in Inga. strengthening its focus on measuring results in these
key areas to highlight the gains that can be made
During IDA17, the WBG built upon its strong through good governance and sound institutions.
partnership with the Asian Development Bank (ADB) Up to IDA17, the World Bank used four results
and forged a cooperation framework with the Asian indicators to measure the strengthening of public
Infrastructure Investment Bank (AIIB). The strong financial management, albeit at a high level. In IDA18,
cooperation between ADB and the WBG is evident in governance indicators have been simplified and made
the partnership to support Pacific island countries in more tangible. For example, IDA18 now uses a target of
maximizing economic opportunities, creating jobs, and an increase in the tax-to-GDP ratio to above 15 percent
delivering services. WBG and ADB have shared liaison in IDA countries to reflect their success in building the
offices in a number of countries in the Pacific, have resources needed to support public services.
coordinated closely on budget support operations and
39
IDA17 Retrospective: Maximizing Development Impact
III. LEVERAGING KNOWLEDGE of ASA works relating to FCSs more than doubled
to 495 in IDA17 from 227 in IDA16, representing 28
percent of all ASAs compared to 23 percent in IDA16.
BOLSTERING THE “KNOWLEDGE BANK” AND
CREATING A “SOLUTIONS BANK” Sound economic management hinges on good data;
without reliable and regular statistical information,
Together with long-term financing and its strong development flounders. Accordingly, IDA17 has
convening power, knowledge is a core part of the provided clients financing and technical assistance to
unique value that IDA brings to its clients. In line help them strengthen statistical services. During IDA17,
with the Bank’s organizational reform and vision, the Bank funded 61 stand-alone statistical capacity
IDA17 underscored the importance of sharpening building projects in 48 countries (of which 20 were
the institutional focus on generating knowledge, FCSs); and an additional four projects that contained
promoting knowledge exchanges across countries, a statistical capacity building component in three
gathering and sharing impact evaluations and lessons countries. The Statistical Capacity Indicator (which
learned, as well as providing better technical solutions provides an assessment of the capacity of a country’s
and higher-quality support. Through the Bank’s Open national statistical system) for IDA countries was 62.8
Learning Campus, a massive open online course on in 2017 compared to 62.2 in 2014. Some examples:
climate science engaged over 7,000 participants from
39 African countries. Throughout IDA17, capacity • The US$150-million Strengthening Systems for
building support through the online campus was Social Protection and Civil Registration Project
provided to e-Learning Africa, a pan-African event in Nepal aims to improve the coverage of social
in support of ICT-supported education, training, and security allowances and civil registration, and the
skills development. delivery of social security allowances.
IDA’s non-lending activities, including its advisory • The eBurkina Faso Project is a US$20-million
services and analytics (ASA) work, continued to project to improve the government’s capacity
play an important role in enhancing its operations. in and use of information and communication
During IDA17, 1,800 ASA products—such as analyses, technologies to provide information and public
policy recommendations, and research reports— services, and foster entrepreneurship in the digital
were completed for IDA-eligible countries (figure 14) economy, with a special focus on agriculture and
compared to about 1,000 under IDA16.27 The volume rural areas.
Figure 14. Advisory Services and Analytics Completed in IDA17
1000
925
800
600
400 370
328
274
200
111
55 85
41 35 21 35
15
0
AFR EAP ECA LCR MNA SAR
Number of completed ASA ctivities (tot l re ion) Number of completed ASA ctivities (FCS countries)
Source: World Bank.
27 These numbers – for both IDA16 and IDA17 – do not include advisory and analytical work addressing multiple countries or that had a
regional or global focus and that may have included IDA-eligible countries.
40
IDA17 Retrospective: Maximizing Development Impact
Box 8. Highlights of the Ways Knowledge Products Can Drive Development
• Toward a Blue Economy: A Promise for Sustainable Growth in the Caribbean (2016) showcased the
critical importance of oceans to economic activity and presented a policy and investment framework.
Its recommendations have been taken up at the Small States Forum, and similar analytical work is
now being replicated in Asia and Africa.
• In Pakistan, the National Financial Inclusion Strategy provided a foundation for a range of World
Bank support for financial sector reforms, including facilities potentially worth more than US$580
million that will benefit housing, infrastructure, and financial inclusion efforts more broadly.
• Regional reports such as Stitches to Riches: Apparel, Employment, and Economic Development in
South Asia (2016) and South Asia’s Turn – Policies to Boost Competitiveness and Create the Next
Export Powerhouse, (2016) were instrumental in supporting clients in thinking through reforms for
improving competitiveness, exports, and creating quality jobs.
• In East Asia, the Pacific Possible study of 2017 focuses on a set of potentially transformative
development opportunities that Pacific Island countries have over the next 25 years and looks at
policy actions that could realize them. In Vietnam 2035: Toward Prosperity, Creativity, Equity, and
Democracy (2016), World Bank analysis presents a path for Vietnam to reach upper-middle-income
status in 20 years.
• The US$50-million Kenya Statistics Program The number of IDA operations that drew lessons from
for Results supports the Kenya National Bureau impact evaluations or other assessments for project
of Statistics in generating better and more design jumped to 75 percent in FY17 from 50 percent
accessible data. in FY13. During this period, one of the key initiatives was
the creation of a central library for impact evaluations
A recent report by the IEG on Data for Development28 that were drawn from across the Bank and that are now
judged that the World Bank’s work in building the available to staff. Additionally, the Bank teamed with
capacity of national statistical organizations led to the UK DFID to create a trust fund that will underwrite
“significant successes” in host countries. The report impact evaluations across developing countries,
indicated the Bank continues to have an important role allowing policy makers to test, evaluate, and expand
to play, particularly in supporting global data collection innovative approaches. This fund is initially targeting
on prices and poverty, assisting in household surveys, five areas critical for IDA countries: shared prosperity,
and coordinating and funding support for national governance, climate change, gender, and FCSs.
statistical organizations. The IDA18 RMS now tracks the
number of IDA countries that are provided statistical To improve the ways the WBG provides its assistance,
capacity building support for the implementation of the Science of Delivery work program is helping teams
household surveys, as well as the number of lending better understand today’s challenges, gain access
operations with civil registration vital statistics. to know-how on implementation issues and lessons
learned. The Global Delivery Initiative, a collaboration
across a growing group of organizations, seeks
to promote the Science of Delivery approach by
gathering widely-scattered knowledge of what works
in international development (see box 10).
28 Independent Evaluation Group (IEG). 2017. Data for Development: An Evaluation of World Bank Support for Data and Statistical Capacity.
Washington, DC: World Bank.
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IDA17 Retrospective: Maximizing Development Impact
Box 9. Ensuring Development Results through Monitoring and Evaluation
Several initiatives were introduced in IDA17 to develop and adopt a wide range of evidence-based tools
and approaches to strengthen monitoring and evaluation, including:
• The launch of the Results Measurement and Evidence Stream in 2014. This was the first Group-
wide initiative that brought together staff, knowledge, innovations, standards, and operational
solutions on results measurement and evaluation. This initiative established results measurement as
a profession at the WBG, promoted standards across the institution, and shared knowledge around
innovative measurement and evaluation techniques, inside and outside the Group. There are now
260 members of this unit across the WBG.
• Reforms resulting from the Implementation Completion and Results Report. These included new methods
for gathering lessons learned that ensure they are gathered, processed and made available quickly.
• Reforms of Core Sector Indicators in FY15 to streamline, update, and make them more useful
for corporate reporting. Twenty-five new Corporate Results Indicators were developed in close
coordination with Global Practices.
• Inclusion of new sub-sections in Project Appraisal Documents and Implementation Completion and
Results reports to describe the project’s results framework or theory of change, providing a coherent
results foundation and high-quality monitoring and evaluation throughout the project cycle.
• A WBG-wide Evaluation Framework laying out core principles and standards for different types of
evaluations, their use, and dissemination.
• Increased staff incentives and other measures to strengthen skills, build capacity, and improve the
quality of monitoring and evaluation. Steps included staff training and new guidance notes on how
to develop good quality results frameworks and provide monitoring and evaluation in operations.
Taken together, these steps aim to significantly improve the scope and quality of WBG monitoring and
evaluation to bring them to a far higher standard than that of recent years.
A new PBS documentary, The Crowd and the Cloud, which aired for the first time on the PBS networks
across the US in April 2017, brings data like this to life by showing us the real lives behind data points.
The “Data for Development” segment in the fourth episode, “Citizens4Earth”, follows Living Standards
Measurement Study team member Talip Kilic as he travels to rural communities in central and
southwestern Uganda. In the episode, James Muwonge, the Director of Socioeconomic Surveys at the
Uganda Bureau of Statistics, explains why household surveys like the Uganda National Panel Survey
are so important for investment decisions and policy-making, particularly in IDA countries like Uganda.
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IDA17 Retrospective: Maximizing Development Impact
Box 10. Gathering and Using Know-How – Wherever It Is – to Improve Delivery
Launched in 2015, the Global Delivery Initiative (GDI) is a partnership of international development
institutions, practitioners, implementing agencies, non-governmental organizations, academic
institutions, and the private sector. During IDA17, GDI:
• Analyzed lessons learned from over 4,000 projects spanning all IDA countries that helped identify
frequent delivery challenges such as poor stakeholder engagement, electoral cycles, and cultural
and behavioral change. Based on these findings, GDI helps task teams to predict potential delivery
challenges and come up with solutions.
• Produced more than 120 case studies, delivery notes, toolkits, and videos based on interviews with
over 100 task team leaders, of which around one-quarter drew on lessons from IDA countries. All
this knowledge is being shared among Bank operational teams, governments, universities, and
other numerous other institutions, such as think tanks.
• Provided direct support to about 50 proposed operations across 12 WBG Global Practices based
on lessons learned in similar projects. IDA clients receiving such support included Madagascar,
Mozambique, Mongolia, Dominican Republic, Kenya, Uzbekistan, Bangladesh. Project “fact sheets”
were provided to 44 projects (21 in IDA countries) to ensure that knowledge and experience was
woven into the WBG’s work from the design stage.
• Convened 14 workshops and conferences for clients and development practitioners from
multilateral development banks, non-governmental organizations, and government ministries to
enhance understanding of delivery challenges.
• Developed and launched the GDI platform, which enables practitioners to connect, share
knowledge, and find comprehensive solutions on specific delivery challenges. This platform was
accessed more than 17,000 times in one year.
Beyond IDA17, GDI is working on developing “country-specific” solutions to delivery challenges, as well
as catering to specific delivery challenges associated with achieving sustainable development goals.
SOUTH-SOUTH KNOWLEDGE SHARING: IDA’S country’s institutions are well prepared to share their
ROLE AS A KNOWLEDGE CONNECTOR knowledge with other countries. For example, to
strengthen the effectiveness of country institutions
IDA17 broadened and refined its approach to helping and improve their service delivery through embracing
countries share with each other their knowledge and knowledge and peer-learning, the Bank:
experiences with development; the so-called South-
South connection. Guided by the views of partners • Developed, tested, and fine-tuned a comprehensive
in the South-South Facility trust fund, IDA17 saw the set of tools (such as workshops and written
adoption in 2016 of a new strategy for this facility that material) that help public sector institutions better
supports “programmatic” delivery of knowledge realize their potential and improve service delivery
exchanges – shifting away from a funding mechanism by more systematically documenting, sharing, and
that supported individual exchanges. The new strategy using their operational experiences and solutions in
aims to help clients find and implement solutions to solving critical challenges.
their key development challenges by: (i) connecting
countries to participate in multiple exchanges over 2-3 • Supported the implementation of organizational
years; (ii) making available knowledge-sharing experts knowledge sharing capacity building engagements
who will ensure appropriate design, implementation, with sectoral and thematic centers of excellence in
and monitoring of knowledge exchanges; and (iii) several IDA countries—Ethiopia (agriculture), Kenya
providing the tools and services to ensure that a (devolution, environment), Nigeria (urban transport
43
IDA17 Retrospective: Maximizing Development Impact
Box 11. New Research Hub Shares Malaysia’s Lessons with More than 50
Developing Countries
The WBG Global Knowledge and Research Hub in Malaysia, created in 2015 as the first of its kind,
serves as a global platform to bring Malaysia’s development experience to other countries and to
carry out innovative development policy research on national, regional, and global issues.
The research hub gathers and presents elements of Malaysia’s experience that can serve as tailored
lessons for other countries, including information around public sector management, economic
development and planning, and modern and integrated financial services. It also engages in
development policy research in partnership with local and international research institutions, pursuing
activities such as enterprise surveys on the informal sectors in Myanmar and Lao PDR and providing
material for the annual Doing Business report.
During IDA17, the Hub engaged in over 50 knowledge exchanges and learning activities with the
participation of over 50 IDA countries. For example:
• A delegation from Ethiopia went on a study visit to Penang and Kuala Lumpur in April 2016 to learn
of the Malaysian experience on special economic zones for industrial development.
• To support the nascent insurance industry in Myanmar, the Malaysian Hub convened Malay and
Thai senior insurance regulators and private company representatives (e.g., from AIG, Met Life and
Prudential) in mid-2016 for knowledge sharing with over 90 participants from Myanmar.
• Malaysian officials shared their experiences in strengthening pro-development institutions at a joint
Vietnam-World Bank conference on economic governance in Hanoi n 2016.
and agriculture and rural development), Niger
(public health); Senegal (education), Togo (trade and
IV. IDA’S OPERATIONAL
transport and mining), and Uganda (agriculture).
EFFECTIVENESS
• Built an online peer-learning platform at www.
knowledgehubs.org focusing on the “how to” of Given the focus on maximizing development impact,
knowledge sharing and showcasing the experiences of to deliver the ambitious package of policy measures
a wide range of knowledge sharing champions through and performance targets that underpinned the IDA17
webinars, e-discussions, interviews, or blog posts. framework, the WBG undertook various organizational
and operational reforms during IDA17 to boost its
An example of IDA17 South-South knowledge exchange efficiency and impact. The IDA Results Measurement
is the China-Africa South-South partnership, focused on System is the central pillar of IDA’s strong results
knowledge sharing and project financing. The China- culture. The system has been continually refined since
Africa Think Tank Alliance was launched in 2016 to bring its launch in IDA13 to strengthen IDA’s focus on results
together the intellectual capabilities of think tanks and monitoring and measurement at the country, program,
the financial strength of development finance institutions and project levels. IDA17 further strengthened IDA’s
to promote sustained development and investment ability to monitor and measure, building on the IDA16
activities in Africa. Additionally, the Investing in Africa addition of indicators that measure IDA’s operational
Forum has been convened three times in Addis Ababa, and organizational effectiveness. Highlights are
Guangzhou, and Dakar to promote investment in Africa. discussed in this section. More details can be found in
the IDA17 Results Measurement System (RMS).
44
IDA17 Retrospective: Maximizing Development Impact
ORGANIZATIONAL REFORMS Table 1. IDA17 Average Preparation and
• New organizational structure. To help staff better Implementation Cost per Bank-Financed
collaborate and share knowledge across such a
multifaceted organization, the WBG created Global
Project and Guarantees in IDA Countries
Practices and Cross-Cutting Solution Areas. By the
end of 2017, 1,300 or 79 percent of IDA projects IDA Bank Budget US$ (‘000) FY15 FY16 FY17
in the lending pipeline and 36 percent of projects IDA Annual Average 361 379 314
Preparation Project Cost29
in the active lending portfolio drew upon multiple
Global Practices, while around half of the WBG’s IDA Annual Average 168 170 176
Implementation Project Cost30
advisory work reflected contributions from multiple
Global Practices. In FY17, 95 percent of clients
in IDA countries reported that the Bank brought
global expertise to its advisory and analytical work, OPERATIONAL REFORMS
up from 88 percent in FY15 and the percentage of
IDA clients reporting that such activities were likely • New country engagement model. In 2014, a new
to achieve intended outcomes rose to 90 percent approach to country engagement was introduced
in FY17 from 84 percent in FY15. to better serve clients and support the goals of
eliminating extreme poverty and increasing shared
• Reduced administrative expenses. The Bank is on prosperity in a sustainable manner. The new model
target to realize savings of about US$340 million encompasses all of the WBG’s principal entities
following an expenditure review started during working together as one WBG, it repositions
IDA17 as part of the WBG approach to foster a culture the Bank to provide customized development
of efficiency through a US$400-million WBG-wide solutions and align its activities with the twin goals,
expenditure review program. In addition, IDA kept and encourages to work more in partnership with
its administrative expenses below revenue and others, including the private sector. The new country
further reduced its administrative costs (as a share engagement model draws on Systematic Country
of lending portfolio). Diagnostics (SCDs) to inform Country Partnership
Frameworks (CPFs) more comprehensively. At the
• Disclosing project preparation and implementation end of IDA17, 91 percent of IDA country strategies
cost. Based on the IDA17 commitment to publicly were underpinned by SCDs. IEG has found the new
disclose preparation and implementation costs for country analytics and engagement model unveiled
IDA projects, table 1 presents the values of average during IDA17—utilizing these Diagnostics and
preparation and implementation cost, per IDA Partnership Frameworks—to be key in assessing
project, for each fiscal year of the IDA17 cycle. trade-offs and making strategic choices.31
29 Figures disclosed include Bank budget costs associated to preparation of approved projects (Investment Project Financing, Development
Policy Financing, and Program-for-Results) in all IDA countries (including blend) during a fiscal year. Expenses include staff costs (labor),
travel, and consultant fees (excluding reimbursables and external funds) and costs of fiduciary and safeguards applicable to IDA lending
preparation.
30 Figures disclosed include Bank Budget costs associated to implementation of active projects (Investment Project Financing, Development
Policy Financing, Program-for-Results) in all IDA countries (including blend) during a fiscal year. Expenses include staff costs (labor),
travel, and consultant fees (excluding reimbursables and external funds) and costs of fiduciary and safeguards applicable to IDA lending
supervision.
31 Independent Evaluation Group (IEG) 2017. World Bank Group Country Engagement: An Early-Stage Assessment of the Systematic
Country Diagnostic and Country Partnership Framework, Washington, DC: World Bank.
45
IDA17 Retrospective: Maximizing Development Impact
Table 2. Direct Links to IDA17 Overarching • Moving in the right direction on speed of delivery.
During IDA17, the median time from concept note
Theme and Special Themes in Country to first disbursement shortened by 3 months to 25
months, although this missed the target of 19 months.
Strategies (by Number of Country This can be partly explained by the expansion of the
overall IDA portfolio—including big infrastructure
Partnership Frameworks and regional programs—and the greater share of
CPF Objectives CPF Cross- resources allocated to high-risk or low-capacity
cutting Theme situations, such as FCSs and small states. However,
Overarching 22 1 moving forward, continued attention to make further
Special Themes improvements to the speed of delivery is important.
Preparation time from project concept note to Board
Inclusive Growth 24 4
approval, over which the Bank has more control,
Climate Change 18 8
dropped to 13.8 months from 15 during IDA17.
Gender 9 13
FCV 3 5 • Increased operational efficiency through
simplification. New reporting approaches and
Source: World Bank.
“dashboards” helped simplify project preparation and
Note: CPFs adopted during IDA17 totaled 23.
portfolio monitoring, sharpening overall efficiency.
Additionally, the WBG introduced an improved
projects portal, reformed procurement systems
• IDA17 special themes (inclusive growth, climate to reduce processing times, simplified risk rating
change, gender equality, and fragile and conflict- tools, streamlined documentation for investment
affected states) featured more strongly in country projects, and brought trust funds into the operations
programs. The 23 CPFs endorsed during this period management portal as further improvements.
reflected IDA17 priorities in their country programs
as key objectives, or cross-cutting areas (table 2).
Beyond direct focus areas and objectives, these
Frameworks included specific milestones, annexes,
and proposed programs that translated IDA special
themes into practical, concrete projects.
Box 12. What Others Say about IDA
IDA’s performance has been subject to several assessments and reviews carried out by shareholders,
shareholder groups, non-governmental organizations, and think-tanks. The assessments uniformly
conclude that the World Bank is a top performing organization with global reach and intellectual
leadership, which has played a critical role in tackling some of the world’s biggest problems such as
conflict, fragility, migration, climate change, disaster, and crisis response. Some highlights:
UK Department for International Development’s 2016 Multilateral Development Bank Review (MDR)
• IDA was one of only three agencies out of 41 assessed that received top ratings both on delivering
against UK priorities and on organizational strengths.
• The MDR highlighted IDA’s “global reach, technical capacity, breadth of funding instruments, and
convening role”.
• The MDR recognized IDA for its ability and capacity in managing risk well and constantly delivering
against tough objectives even in a more pressing and challenging environment.
• The MDR highlighted the World Bank’s central role in the global system for over 70 years as it
tackled some of the world’s biggest problems including “protracted conflict and security threats,
mass migration, extreme poverty, disease, disasters and climate change”.
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IDA17 Retrospective: Maximizing Development Impact
Box 12. What Others Say about IDA (continued)
Multilateral Organization Performance Assessment Network Review of IDA (2015-16)
• IDA was assessed as a highly satisfactory. The assessment highlighted IDA as a “mature and high-
performing organization, which meets the requirements of an effective multilateral organization
that is both fit for purpose and can anticipate and adjust to a changing world”. It further highlighted
the World Bank’s comparative advantage, its solid internal structures, policies, top-notch financial
knowledge and strong intellectual leadership.
• The Bank excelled in four key areas: unparalleled global reach and financial resources; strong
country-level engagement; ability to anticipate and adjust to a changing global environment; and
robust oversight, accountability, and due diligence structure.
• The assessment recognized the IDA’s the main source of financing for most developing nations
which provides “strong intellectual leadership on a broad range of issues of global importance”.
Australia Department of Foreign Affairs and Trade (DFAT) Multilateral Organization Performance
Assessment of IDA (2016)
• DFAT recognized IDA’s strong presence in all countries that are “beneficiaries of Australian
aid through bilateral, regional and global channels”. The Bank is highlighted for scaling up its
engagement with Pacific Island countries.
• The assessment reports that “The Bank Group has also made efforts to strengthen its financial
foundations and capacity, in part through the expenditure review exercise that resulted in
administrative savings of US$400 million.” This helped in building funding flexibility.
• The Bank excelled as “a global leader in coordination, collaboration and knowledge sharing,
including its platform role in providing public goods, such as supporting and reporting global
poverty data and producing high-quality poverty diagnostics and publications.”
• The Bank was rated strong on DFAT’s effective accountability mechanism, ascribed to its “several
accountability mechanisms to ensure financial management, auditing, risk management and fraud
prevention.”
Aid Transparency Index of IDA (2016)
• The 2016 Aid Transparency index ranked IDA “very good” for the second consecutive year. The
World Bank was among the top-six that consistently performed well.
• The World Bank is distinguished as a “very good” organization that has met the Busan commitment,
a list of principles that are key to making development cooperation effective in support of
international development.
• The World Bank is commended for its efforts in “dramatically improving the timeliness and
comprehensiveness of its aid information.” The bank reduced the burden on development partners
to provide data while significantly increasing the quality of the data.
Center for Global Development and the Brookings Institution aid assessment (2014)
• A 2014 assessment by the Center for Global Development and the Brookings Institution named
IDA as one of the international community’s top performing donors, citing IDA’s low administrative
costs, more predictable aid flows, and large project size relative to other donors.
47
IDA17 Retrospective: Maximizing Development Impact
Box 13. Better Understanding the Costs of Development in Different Fields
To gain deeper understanding and be able to compare operational expenses and costs across
countries and by the type of project, IDA piloted ‘unit cost’ exercises in three Global Practices: Health,
Nutrition, Population (HNP); Water; and Energy.
• In HNP, the objective of the pilot was to estimate the costs per birth delivery at health facilities of
results based financing in health sector operations in Congo and Zambia. This pilot effort learned
that: (i) Country and local context is a major factor; (ii) Detailed cost information by activity is often
unavailable; (iii) Robustness of cost calculations depends on the type of estimation methodology;
and (iv) Need for more systematic impact evaluations that gather detailed cost information.
• The Water Global Practice had embarked on a similar exercise in 2009 through the Africa
Infrastructure Country Diagnostic, a major multi-year attempt to analyze the unit cost of outputs in
multiple infrastructure sectors, including water. This diagnostic showed that project components,
as well as unit costs, differ significantly over time and place, and that determining the efficiency
of different water investments is very complicated, partly because of the difficulty in unbundling
cost components and in part because of a lack of comparators.
• The Energy Global Practice reviewed four recent WBG power sector studies building on the Africa
Infrastructure Country Diagnostic, with a primary focus on transmission lines and electrification
in Africa. The pilot highlighted many reasons other than inefficiency as to why costs may vary,
such as: (i) Technical design and specification (e.g., voltage levels, or single/double circuit);
(ii) Geographical location, terrain, and climate (e.g., mountainous, wet, urban); and (iii) Market
conditions (such as project and market size, or procurement method).
• Greater agility. The Agile Pilots Initiative is working skills to the government in the project’s critical
to enhance institutional responsiveness, flexibility, start-up phase.
and efficiency. Experience through these pilot
initiatives led to streamlined reporting procedures • Stronger safeguards. The Bank completed an
for staff; a new lending instrument that allows for extensive review of its environmental and social
Board approval of an overall financing envelope for safeguards and adopted the new Environmental
a long, large, or complex program and authorizes and Social Safeguards Framework in March
Bank management to commit that financing 2017, expanding protections for people and
in smaller phases (or projects and operations); the environment in Bank-financed projects. It
and greater delegation of project restructuring introduces comprehensive labor and working
authority to Bank management. conditions protection; an over-arching non-
discrimination principle; community health
• Greater transparency in procurement. A new and safety measures that address road safety,
procurement framework was introduced in July emergency response and disaster mitigation; and a
2016 with the objective of increasing the flexibility, responsibility to include stakeholder engagement
efficiency, and transparency of procurement throughout the project cycle. The framework also
processes. The framework ensures that the places greater emphasis on the use of borrower
procurement fiduciary integrity of World Bank frameworks and capacity building.
projects is maintained, while providing greater
choice in procurement approaches. One example • Better results measurement. IDA17 relied on
is the use of Hands-on Expanded Implementation an enhanced RMS to monitor progress in IDA
Support in Papua New Guinea where the Bank was countries, as well as progress on the IDA17 special
able to accelerate the Emergency Tuberculosis themes and IDA’s own effectiveness.
Project while providing a transfer of procurement
48
IDA17 Retrospective: Maximizing Development Impact
Box 14. Tailoring Support to Cope with Insecure Environments – Lessons from
Afghanistan
To support the World Bank’s ongoing efforts in Afghanistan while also ensuring staff safety, the WBG
relied on approaches that combined financing flexibility with a shift in locations.
Recognizing the increasing security risks of a large presence of international staff in the Kabul office,
most international staff were moved to Dubai in March 2014. Third-party monitoring was undertaken
for several important, geographically scattered investment programs.
To ensure continued financial support in a fluid environment, longer-term programs are often approved
initially for a short period and then extended with additional financing if they are performing well. This
allows greater flexibility to restructure in a timely way and transfer funds between operations.
OPERATIONAL EFFECTIVENESS IN FRAGILE non-governmental organizations or UN agencies.
AND CONFLICT-AFFECTED SITUATIONS Lessons from Afghanistan (see box 14) demonstrate
that, despite security risks, the WBG can still have an
The new crosscutting team for FCV, based in impact if there is flexibility and willingness to adopt
Washington, D.C., with a global operations support innovative approaches.
team in Nairobi, enhances and expands the WBG’s
strategic work with FCSs. The FCV group provides Bringing high technology approaches to bear in fragile
analysis around and approaches to fragility, knowledge and conflict-affected settings. Geospatial platforms—
management, country advisory, partnerships, and which allow people on the other side of the world to
responses to forced displacement. The team added access real-time data and analysis through ICT—are
36 professional staff in IDA FCSs at the end of FY17, increasingly leveraged as tools for remote planning and
bringing the FCV crosscutting team’s size to 372. monitoring of project interventions, complementing
activities on the ground. For example, geospatial
IDA17 led to reforms around increased operational analysis in the context of the famine response in early
coordination, support for tailored solutions, and 2017 delivered map-based diagnostics to expose the
learning through new standards for government interrelation of various crisis drivers and outcomes,
contracting of UN agencies using Bank funds (now in including food insecurity, conflict dynamics, and
place for five of 10 key UN partners). It also created forced displacement (figure 15). In addition, mapping
a UN response unit to aid Bank teams and prepared of development needs and the local presence of
guidance notes on the WBG’s mandate and authorizing partner organizations has helped to effectively plan
framework in FCSs. relief and development support in countries like
Somalia and South Sudan, despite significant access
WBG teams aim to improve project design to help constraints for WBG teams.
better cope with insecure environments, including
through third-party supervision, remote monitoring
systems in inaccessible areas, and operations through
49
IDA17 Retrospective: Maximizing Development Impact
Figure 15. Geographic Mapping for Analysis and Communication of Related Crisis Issues
Source: World Bank Group Climate Change Action Plan (2016-2020).
50
IDA17 Retrospective: Maximizing Development Impact
Box 15. Drones, Phones, and Big Data: Putting ‘Disruptive’ Technologies to Work
Digital innovation is changing the development landscape rapidly. ‘Frontier’ or ‘disruptive’
technologies offer many advantages in helping Bank teams meet local needs and challenges. These
new technologies can be developed and used with little cost, can be scaled to almost any challenge,
and are more agile in grasping new opportunities. IDA projects implemented during IDA17 worked
through drones, remote sensing, big data, ‘smart cities’, the internet of things, social media, digital
identification, geo-reference data, mobile money, smart energy, and more to deliver critical assistance
to clients. For instance:
• Providing access to affordable, reliable, and sustainable energy by leapfrogging traditional grid-
based and urban-focused generation and distribution systems.
»» Off-grid services: “Pay-as-you-go” services on mobile payment systems are driving energy
access in East Africa. In Ethiopia, over 1 million households are gaining access to energy
with solar lanterns and home systems. In Mozambique, access in rural areas through off-grid
renewable solutions, such as solar panels, has provided power to over 500 health centers and
300 schools.
»» Smart grids: Smart metering, distribution automation, and advanced supervisory control
and data acquisition systems offered significant improvements in the reliability, flexibility,
efficiency, and sustainability of power grids. Smart grids are boosting the uptake of renewable
energy in countries such as Vietnam, Kenya, Niger, Laos, and the Dominican Republic.
• More cost-effective project monitoring in remote areas and fragile situations. In the wake of the
security crisis in Mali, a new monitoring system collected information from beneficiaries via tablet
computers and mobile phones.
• Using internet, mobile communications, and social media to better respond to crisis situations
such as floods, earthquakes, epidemics, and conflict. In Nepal, engineers used a customized phone
application to survey over 700,000 damaged households following the 2015 earthquake. Drones
helped guide post-disaster needs assessments in Vanuatu. In Guinea, Liberia, and Sierra Leone,
mobile phones were used to make direct payments to Ebola response workers.
• Using big data for real-time monitoring of project progress and using smart systems to automate
tasks. In Vietnam, the Mekong Delta Climate Resilience project is expanding monitoring systems
using remote sensing on water quality and modelling.
• Digitizing public records for better access to public and financial services. IDA supports digitization
of civil registries, health records, education records, and land rights. In Nepal, IDA supported the
establishment of a population register and the expansion and adoption of e-payment for social
security allowances.
• Smart cities: The use of ‘smart systems’—ranging from energy-saving street lights like to connected,
real-time water sensors—can help municipal administrations save money and improve services. In
Bangladesh, a smart city information communications technology system is being developed for
an urban development project.
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IDA17 Retrospective: Maximizing Development Impact
The Many Faces of IDA: Kosovo
Kosovo faced a daunting challenge in the wake of the conflict there in 1999, as tens of thousands of
properties were left damaged, destroyed, or abandoned. Complicating matters, property ownership
and sales were often unregistered, owing to weak services. A US$12-million Bank initiative is changing
this: Kosovo’s Real Estate Cadastre and Registration Project has helped improve tenure security and
develop land and property markets across the country. Now, ownership is being registered through
a simplified system, and rights to property are being guaranteed. A specialized drone was used for
cadaster mapping.
The project also promoted the importance of women’s property rights. For example, experts from the
World Bank met with women from the Krusha village to encourage ownership rights. The village is
populated largely by war widows, yet less than 8 percent have property titles.
In addition, the project helped renovate central and regional cadaster offices, introduced the Kosovo
Land Information System across the office network, and created a national “Geoportal” that has seen
a surge in the number of users since 2016. The number of property transactions registered has nearly
doubled, from 27,500 in December 2008 to around 50,000 today. Furthermore, the average number
of days it takes to record the purchase or sale of property in the land administration system has been
reduced from 30 days in 2008 to less than 10 days today. Around 162,000 people recorded use or
ownership rights as a result of the project and 146,192 land parcels were recorded – including 3,040
building plots and 41,552 apartment units. Women recorded more than 500 building plots and 6,981
apartment units.
Click here for more on the Real Estate
Cadastre and Registration project in
Kosovo.
Photo: The World Bank’s Innovation Labs are testing the use
of aerial drones in World Bank projects, including in Kosovo.
52
IDA17 Retrospective: Maximizing Development Impact
SECTION 3: SPECIAL THEMES: INCLUSIVE GROWTH,
GENDER EQUALITY, CLIMATE CHANGE, AND FRAGILE
AND CONFLICT-AFFECTED STATES
IDA Special Themes, introduced in IDA14, help sharpen
and guide IDA’s priorities agreed with shareholders in
I. INCLUSIVE GROWTH
country program implementation. The IEG, in its report
Learning from IDA Experience: Lessons from IEG ADDRESSING INEQUALITY IN IDA COUNTRIES
Evaluations, found that these “thematic areas are fully
consistent with the WBG's twin goals and the SDGs.”32 IDA17 adopted “inclusive growth” as a special theme
Three IDA17 special themes were carried forward from to reflect the urgent need to address rising inequality
IDA16: gender equality, climate change, and FCSs. In in many IDA countries, as well as its centrality to
addition, IDA17 introduced the new theme of inclusive achieving the WBG’s twin goals. In spite of positive
growth. trends, including signs of income growth for the bottom
40 percent of income-earners in most developing
countries, much remains to be done to make growth
more inclusive in IDA countries.33 Available income
data confirms that while inequality decreased in the
majority of IDA countries over the past 20 years, the
gap still widened in a significant number (figure 16).
32 Independent Evaluation Group (IEG). 2016. Learning from IDA Experience: Lessons from IEG Evaluations. Washington, DC: World Bank.
33 World Bank. 2016. Poverty and Shared Prosperity 2016: Taking on Inequality. Washington, DC: World Bank Group.
53
1
Aver e income rowth*
0%
10%
20%
30%
40%
50%
60%
70%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
Guine -Biss u
Djibouti M d sc r
Ch d Hondur s
T n ni
M li
L o People's Democr tic Republic
Con o, Republic of K r Republic
Mo mbique Rw nd
T jikist n
Ethiopi
Hondur s
Kirib ti Sene l
Source: World Bank, based on PovCalNet.
St. Luci To o
M nm r
Inequ lit incre ses
Sud n Ni eri
South Sud n M l wi
circ 1990/1993
Tuv lu
Moldov
V nu tu
S mo U nd
Zimb bwe B n l desh
Ton
G mbi , The T n ni
54
Bottom 40%
S o Tome nd Principe M urit ni
Kosovo
Sri L nk
Micronesi , Feder ted St tes of
Nep l Vietn m
M ldives L o PDR
Figure 16. Inclusive Growth Seen Across Most IDA Countries
circ 2013/2014
Centr l Afric n Republic
C bo Verde
P kist n
Moldov Mo mbique
Bhut n C meroon
IDA17 Retrospective: Maximizing Development Impact
Ken
Tot l popul tion
Solomon Isl nds C mbodi
U bekist n Nep l
Inequ lit decre ses
Comoros
Note: *Annualized growth in mean income/consumption per capita during a 5-year period between 2003 and 2013.
Con o, Rep.
Ethiopi
Guine Nic r u
P pu New Guine Bolivi
Sene l
M li T jikist n
H iti Bhut n
M l wi
Mon oli
K r Republic
Con o, Dem. Rep.
IDA17 Retrospective: Maximizing Development Impact
IEG lessons emphasize that IDA17’s focus on inclusive GENERATING JOBS
growth brought previously missing attention and a
comprehensive approach, particularly to the issues To confront the jobless growth in many IDA countries,
of jobs, youth employment, financial inclusion and IDA17 augmented its efforts to attract private sector
natural resource management for poverty reduction. help by focusing even more closely on the employment
There remains the need to sharpen the poverty focus agenda to identify ways it could help accelerate job
of this agenda, especially to: reach the rural poor; creation. This challenge is immense in IDA countries
emphasize fiscal and environmental sustainability; and is aggravated by demographic pressures, with
promote quality education and skills development; an estimated 600 million new entrants into the labor
expand diagnostics; identify links between challenges; market over the next decade (based on latest data
and design more innovative delivery models. For from IDA18). Reflecting IDA17’s greater emphasis
instance, as IEG reports, a comprehensive approach on creating work opportunities, close to 400 jobs-
has been missing in the Bank’s youth employment relevant projects were under implementation or in
programs – indicating the need for strong diagnostics development in IDA countries by the end of the IDA17
to inform policy and program design. term. The Bank also created the Jobs Cross-Cutting
The Many Faces of IDA: Ethiopia
Serkalem Belay had a growing business refurbishing old vehicle parts for sale at her workshop, but
she struggled to find the money to make the most of her opportunities. She applied for a loan of
700,000 Birr from Wasasa, a microfinance institution supported by the Women Entrepreneurship
Development Project. Serkalem had applied for business loans in the past, but had never been able
to obtain a loan size that met her needs. Serkalem used the loan from Wasasa to purchase additional
workshop materials and to hire new employees. In three months, Serkalem’s workshop had grown
from six to 12 full-time employees and her monthly profits jumped 50 percent.
Since 2012, Ethiopia has drawn upon IDA funds and expertise to dramatically transform the landscape for
in favor of women entrepreneurs, supporting over 10,000 women with loans and business training. The
Women Entrepreneurship Development Project that supported this initiative is an IDA investment lending
operation designed to address the key constraints for growth-oriented women entrepreneurs in Ethiopia.
The project’s objective is to increase earnings and employment for women-owned enterprises in
Ethiopia. It created the country’s first ever women-entrepreneur focused line of credit in 2013 and
the sudden demand has been staggering. The Women Entrepreneurship Development line of credit
is providing roughly US$2 million in loans to growth-oriented women entrepreneurs every month, far
exceeding initial targets. In tandem, several hundred women participate each month in the project’s
cutting-edge entrepreneurship training program, which draws lessons from modern cognitive
psychology and equips participants not only with business skills in the traditional sense, but also with
the ability to think like an entrepreneur.
Click here for more on The Women
Entrepreneurship Development Project.
Photo: Serkalem Belay owns an industrial machinery
workshop.
55
IDA17 Retrospective: Maximizing Development Impact
Solutions Area (now the Jobs Group) and the umbrella efforts are needed to close data gaps, especially in
multi-donor trust fund on jobs, among other initiatives. standardized business data for labor demand, given
the dominance of the informal sector and household-
Guided by the 2013 World Development Report based enterprises in most IDA countries.
on Jobs, IDA17 strengthened its knowledge base
and introduced a new analytical product: “Jobs FINANCIAL INCLUSION
Diagnostics”. The patterns of growth and economic
transformation and their links to jobs vary considerably IDA17 support to financial access—another key aspect
across IDA countries. At the same time, a common of inclusive growth—was an integral part of progress
theme in many IDA countries is that, despite growth, toward the WBG goal of Universal Financial Access
economic transformations lag or the process fails to by 2020. The WBG put forward this goal in 2013 and
generate quality, sustainable jobs. “Jobs Diagnostics” set targets such as access to a transaction account by
therefore analyze both the supply and demand sides one billion previously unbanked adults. As part of this
of the labor market to give a comprehensive picture effort, IDA provided technical, advisory, and financing
of the opportunities and challenges in them. In total, support to 23 countries during IDA17, more than
15 jobs diagnostics (including six in FCSs)34 were doubling the target of the IDA17 policy commitment.
developed during IDA17 and have laid the groundwork Of these countries, 12 are in Sub-Saharan Africa.
for better job-oriented strategies and operations This support includes comprehensive programs of
at country level. For example, in Zambia, the jobs technical, knowledge, and financial support for the
diagnostic (together with a value chain analysis) design and implementation of national financial
supported by the Let’s Work Partnership, steered IDA inclusion strategies, reforms and investments in
support towards areas with the best prospects for innovative payment and financial services.
connecting the poor with quality work. The design of
the Zambia Agribusiness and Trade Project was also
shaped by these analytics, connecting smallholder
farmers with commercial aggregators and small- and
medium-sized agricultural processing facilities. A common theme in many IDA
countries is that, despite growth,
Several lessons emerged from the Jobs Diagnostics
tool for delivering more successful jobs outcomes:
economic transformations lag or
the jobs diagnostics help expand access to markets, the process fails to generate quality,
promote labor mobility, support urbanization, sustainable jobs.
strengthen the capabilities of firms, and help create
a lower-risk business environment for investors. First,
expanding access to markets through improved The broader and smarter use of data is central to the
infrastructure, trade integration, and value chain financial inclusion agenda under IDA17, showcased in the
strengthening is central to improving firm dynamics, Bank’s support to the Global Findex Inclusion Database
job creation, and productivity, and to enabling more (Global Findex). Global Findex is managed in partnership
rapid structural transformation. Second, supporting with the Bill and Melinda Gates Foundation to better
labor mobility through building skills, risk mitigation, measure innovative payments, mobile banking, and
and enhanced access is critical to better connect financial literacy. The Global Findex database measures
workers to jobs. Third, supporting urbanization, how adults use accounts, make payments, save, and
including the development of secondary towns helps manage risk in more than 140 economies representing
establish an environment that supports both the more than 90 percent of the world’s population. As of
demand and supply side of the jobs equation. Finally, 2017, the Global Findex covered about 60 percent of
translating the themes above into jobs and economic IDA economies. Policymakers in IDA economies have
transformation requires addressing constraints to used Global Findex to help them develop national
private sector investment by strengthening the financial inclusion strategies in partnership with IDA
capabilities of firms and enhancing the risk-return and others. For example, the State Bank of Pakistan
environment, including through infrastructure uses the Global Findex in its financial inclusion strategy
investment, an improved investment climate, and and Nigeria uses it to track progress toward national
markets that provide the right incentives. To enhance financial inclusion goals.
the effectiveness of the diagnostic tools, continued
34 These countries are Afghanistan, Bangladesh, Burkina Faso, Côte d’Ivoire, Democratic Republic of Congo, Ghana, Haiti, Kenya, Kosovo,
Kyrgyz Republic, Moldova, Rwanda, Sierra Leone, Tajikistan, and Zambia.
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IDA17 Retrospective: Maximizing Development Impact
FOSTERING GOOD GOVERNANCE OF PUBLIC by 987 mining companies since its launch in
RESOURCES 2015. The country also helped improve dealings
between local communities and miners by creating
IDA17 continued to support governments seeking to community development agreement models to
improve the quality and efficiency of public service guide their relations.
delivery to foster inclusive growth. During IDA17, the
Governance Global Practice was formed to leverage • IDA partnered with the AfDB on a new online
global best practices to provide IDA support and it portal for African mining laws (the Africa
brought together IDA’s diverse efforts in supporting Mining Legislation Atlas), which aims to support
reforms in public financial management, tax policy capacity building among law makers and improve
and administration, procurement, and capable, accessibility of mining laws across Africa.
inclusive and accountable institutions. Ultimately, the
aim is to ensure IDA countries can better generate, • IDA provided support for improvement and
manage, and use public resources for the greatest updates of legal regimes for oil, gas, and mining in
impact. For example, in Burundi, IDA supported client countries in, among others, the Democratic
program-based budgeting, improved government Republic of Congo, Madagascar, Malawi,
statistics, a revamped mining code, and introduced Mozambique, Sierra Leone, Mongolia, Uganda, and
more predictable tax policy; and in Bangladesh, the Myanmar.
Value-Added Tax (VAT) Improvement Program is
working to increase the number of registered, active Under IDA17, the Bank deepened its efforts to help
VAT taxpayers. countries be more transparent around their budget
processes. In particular, it promoted the “BOOST”
To help ensure that the poor are able to share in the data tool, launched in 2010, to help countries make
prosperity from mineral discoveries in IDA countries, their spending data more accessible, allowing for
IDA17 strengthened its focus on governance and better use in budget preparation and promoting
accountability in the extractive sector. IDA remained better analysis and accountability. Essentially, it is a
the partner of choice to provide technical assistance way to enhance a government’s ability to design and
on oil, gas, and mining sector reforms to its clients manage policies for inclusive growth. Combining a
—an important role considering the transformative government’s own data with a template format, the
nature of extractive industries. At the end of IDA17, BOOST data platform makes highly granular fiscal data
the extractives sector portfolio amounted to US$810 accessible and ready-to-use. IDA17 delivered BOOST
million across more than 60 resource-rich countries. databases and user manuals in 36 IDA countries
IDA support was extended to almost all countries—52 (including in seven countries heavily reliant on natural
in total—eligible under the Extractive Industries resources), considerably surpassing the target to
Transparency Initiative (EITI). IDA assistance focused prepare 20 BOOST packages. The tool has resulted
on furthering the implementation of this initiative, as in better access and improved spending analysis, with
well as improving legal and regulatory frameworks almost half of the 36 countries agreeing to publicly
and revenue collection from extractive industries and disseminate their BOOST platforms. In addition to
increasing local content and the impact of extractive supporting public spending reviews, the BOOST
industry investment. databases have also underpinned results indicators in
lending (e.g., in Tanzania) and to support government
A country’s commitment to sound management of open data initiatives (as in Burundi).
its mineral wealth can bring a number of immediate
benefits, including lower-cost financing. For example, The BOOST framework is also part of the WBG’s
Moody’s Credit Rating Agency cited Senegal’s efforts to help Haiti improve its public financial
candidacy in EITI as a reason for upgrading the management approaches, which will be essential to
country’s credit rating in 2014. Many other countries the island nation’s continued recovery from recent
see these and other benefits and are following disasters and its efforts to help its poorest citizens.
suit. Albania passed legislation in 2015 requiring all BOOST is helping the government bring together
hydrocarbon contract holders and national and local badly fragmented information on public spending
governments to report all revenues and payments and the resulting database is being used for analysis
based on an EITI standard. Other examples: to prepare a Public Expenditure Review. In addition,
the BOOST exercise in Haiti has identified data quality
• Mongolia developed an electronic reporting issues, as well as problems in budget classification,
system for its mining and petroleum companies that now can be addressed to ensure better use of
under the EITI requirements that has been used public spending and investment.
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IDA17 Retrospective: Maximizing Development Impact
LOOKING AHEAD IEG evaluations have validated these trends. Its
reviews have confirmed that there is greater gender
While the platform for inclusive growth during IDA17 integration across IDA country strategies, including
was broad-based and progressive, it will benefit from effective mainstreaming within health, education
a greater focus and a narrowing of the scope of this and community-driven development portfolios.
important agenda. IDA17 experiences with Jobs The World Bank’s internal focus is raising the bar
Diagnostics point to the need to better integrate jobs in on commitments and analytics, including impact
analytical work, and country programming and lending. evaluations, as envisaged in the Gender Strategy. At
There need to be specific goals in terms of job creation, the same time, IEG has noted the need to intensify
job quality, and labor markets among the outcomes actions to address gender-based violence against
for vulnerable population groups. A new generation women and their economic empowerment; gender
of jobs lending operations is emerging, drawing from mainstreaming across sectors, data and statistics; and
country jobs strategies that address macroeconomic strengthening monitoring and evaluation systems for
fundamentals, labor supply, and labor demand in gender – key focus areas of IDA18 efforts.
a balanced manner. Many are youth employment
programs, responding to the record number of young TOWARD MORE CONCRETE GENDER RESULTS
people becoming working age; 60 million each year
globally. Building on the integrated public and private The IDA17 gender focus was guided by the WBG
solutions to the jobs agenda during IDA17, IDA18 Gender Strategy35 that was adopted in December
introduced a new special theme on Jobs and Economic 2015, the result of consultations with over 1,000
Transformation and, in addition, established a new stakeholders in 22 countries. IDA helped spark the
instrument to crowd in private sector investments, the development of this new strategy, which sets a higher
IFC-MIGA Private Sector Window. bar by focusing on tangible activities that transform
lives by effectively closing opportunity and outcome
gaps between males and females. The strategy
focuses on four objectives: (i) Improving human
II. GENDER EQUALITY endowments – health, education and social protection;
(ii) Removing constraints for more and better jobs;
(iii) Removing barriers to women’s ownership of and
While gaps between women and men, boys and control over assets; and, (iv) Enhancing women’s voice
girls are decreasing in IDA countries, many gender and agency and engaging men and boys. It seeks to
equality challenges remain. The maternal mortality address unfinished business in areas such as maternal
rate remains very high and IDA countries face major mortality, while taking aim at emerging challenges
gaps in economic opportunity, with women’s labor such as those associated with ageing populations,
force participation, employment status, job quality, climate change, slow economic growth, and lagging
and access to productive inputs consistently trailing job opportunities. The launch of the new strategy
those of men. Financial inclusion remains a challenge: helped influence the design of new operations, and
while more than 79 percent of adult women and men new modules of ongoing operations, especially during
in IDA countries remained unbanked in 2014, women the second half of the IDA17 cycle.
trail men by nine percentage points. Women and
girls in IDA countries often continue to be deprived • For instance: In India’s Jharkhand state, a US$63-
of voice and agency, and experience a high incidence million IDA credit is supporting the Socioeconomic
of gender-based and sexual violence, especially in Empowerment of Adolescent Girls and Young
situations of fragility and conflict. IDA countries will Women Project to help 680,000 adolescent girls
still require continued support to close these gaps. and women in 17 districts complete their secondary
Under IDA17, the WBG took steps to improve its ability education and acquire market-driven skills. They
to respond to the stark challenges posed by remaining also receive life skills training in resilience as well
inequalities between women and men, boys and girls. as in communication, problem-solving, and goal-
Coming on the heels of the 2012 World Development setting, on rights and protection (covering topics
Report on Gender Equality and Development, and such as early marriage, child labor, safe migration,
drawing on lessons from the implementation of IDA16, and gender-based violence), health and nutrition,
IDA17 set out to accelerate the World Bank’s work to sanitation, and financial literacy.
reduce gender gaps.
35 World Bank. 2015. World Bank Group Gender Strategy (FY16-23): Gender Equality, Poverty Reduction, and Inclusive Growth. Washington,
DC: World Bank.
58
IDA17 Retrospective: Maximizing Development Impact
The Many Faces of IDA: India’s Bihar State
Shakila Khatun is a small holder farmer in Purnea district of Bihar, India. Like many small farmers
she could not get a fair price for the maize she produced; until last year, she was forced to sell her
maize to a trader who bought it without explaining how he arrived at the offered price. Things are
different now. Khatun is part of a smallholder farmers’ “producer company”, a collective managed by
1,465 women farmers. Last year, she sold nearly 30 metric tons of maize to the company, earning 20
percent more than the previous year.
“We are happy with the way things are going. Our target is to procure at least 5,000 metric
tons. Last year we did 1,048,” Khatun says. Members of the company use online trading platforms to
discover fair prices for their produce. The company runs the transactions and stores the produce in
a warehouse.
Khatun is one of hundreds of thousands of women in Bihar who have been helped through the IDA-
backed Bihar Rural Livelihoods Project, popularly known as JEEViKA (livelihoods). The decade-
long project has seen more than 1.8 million women from rural poor households organize into nearly
150,000 self-help groups, 9,500 village organizations, and 161 federations. So far, these community
institutions have leveraged nearly US$93 million from commercial banks while mobilizing more than
$23 million in their own savings.
The impact has been significant. The community institutions have reached more than 400,000
farmers with a one-stop-shop for agriculture including credit, inputs, digital agriculture extension, and
farmers’ field schools. They have supported many women in developing nutritious kitchen gardens
at home and an intensive campaign on health, nutrition, water, sanitation and hygiene resulted in
significant changes for women and households.
Photo: Women farming smallholder plots in India’s Bihar
state are forming their own groups to get better prices,
rather than relying on opaque and unfair trading systems
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IDA17 Retrospective: Maximizing Development Impact
All regions implemented and monitored specifically- approaches for women in conflict areas who are at risk
tailored gender action plans under IDA17. All regions of displacement, violence, and rape. Progress has been
had active gender action plans under IDA17, serving achieved around intimate partner violence legislation.
to focus the attention of regional management on In 1976, only one country had laws against intimate
development outcomes for men and women and partner violence. In 2015, 127 of the economies covered
proving useful in garnering support for activities to in the publication Women, Business and the Law 2016
empower women and girls at the country level. had such laws. Nonetheless, violence against women
and girls continues to be among the most egregious
IMPROVING ACCOUNTABILITY, MONITORING, and commonly experienced abuses of women’s rights.
LEARNING AND INNOVATION Almost one-third of women globally have experienced
either physical or sexual violence or both by an
A central objective under IDA17 was improving gender intimate partner. Treatment and support for survivors
accountability, monitoring, learning, and innovation. In is critical, but across the globe the majority of women
FY17, a new gender tag was launched in the operations (60 percent) who experience violence never seek help
portal to help track projects that seek to narrow or report violence to anyone.36
a gender gap related to the Gender Strategy’s four
pillars and that have a clear results chain for achieving In spite of challenges related to changing behaviors
and measuring results. The new tag helps track within households, IDA17 focused on increasing IDA’s
outcomes through the Bank’s standard operational impact against gender-based violence, building on
reporting mechanisms. On data, IDA17 helped roll lessons from IDA16. A notable example of a larger
out activities to increase sex-disaggregated data and project dedicated to gender in the IDA17 cycle
gender statistical capacity in 21 IDA countries. includes the US$200-million Multi-Sectoral Crisis
Recovery Project for North Eastern Nigeria of 2017,
Regional “Gender Innovation Labs” have been created which is working to increase access to public services
to evaluate innovations in promoting women’s for women, to mitigate and prevent gender-based
economic opportunity. The Gender Innovation Labs violence, and promote the engagement of women
conduct impact evaluations, often of IDA-funded in peace-building and conflict resolution. In addition,
projects, that assess the outcome of development the US$205-million Sahel Women’s Economic
activities to generate evidence on how to close the Empowerment and Demographic Dividend regional
gender gap in earnings, productivity, assets, and project has been working with the governments of
agency. Three labs were active in the Africa, South Burkina Faso, Chad, Côte d’Ivoire, Mali, Mauritania, and
Asia, and East Asia, and the Pacific regions during Niger to empower adolescents and women through
IDA17. The Labs performed 75 impact evaluations, access to health care and conditional cash transfers, in
with most taking place in IDA countries in Africa. For order to prevent early marriages and school dropout.
instance, a 2016 impact evaluation of non-cognitive
skills development in Togo demonstrated that women LOOKING AHEAD
who received innovative entrepreneurial training
—focused on personal initiative—saw their profits The past two decades have seen significant progress
increase by 40 percent, compared to 5 percent for in raising living standards and closing gaps between
those who had received traditional business training. men and women, especially in education and health,
This project is now being replicated in operations in yet critical disparities persist in economic opportunity
Ethiopia, Mauritania and Mozambique, as well as in as well as in voice and agency of women and girls.
Mexico (an IBRD client), and in a program in Jamaica Improvements mask steep income variance in access
run by the Inter-American Development Bank (IDB). to services, with women in poorer households and
poorer countries facing widening gaps with their richer
IDA17 enhanced its ability to prevent and address counterparts. Increased access to schools has helped
gender-based violence. The WBG’s involvement close female-to-male gaps in enrollment, completion of
in addressing this scourge falls into three broad primary school, and transition to secondary school in
categories: first, supporting programs to reduce all developing regions. However, issues of learning and
intimate partner violence; second, developing quality of services remain, and in some regions, reverse
interventions to improve the safety and security of gender gaps —whereby males are disadvantaged—are
women in public transport systems and the workplace; appearing at secondary and tertiary levels.
and third, developing integrated health and livelihood
36 World Bank. 2014. Empowering Women and Girls for Shared Prosperity. Washington, DC: World Bank.
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IDA17 Retrospective: Maximizing Development Impact
Women lag behind men in most measures of economic • The experience from IDA17 also shows the
opportunity. Even though the gap between male and importance of focusing on results and value for
female labor force participation narrowed between money with greater use of evidence and lessons
1990 and 2013, female labor force participation remains learned when working to close gaps. Implementation
around 55 percent. Women are less likely to work full of the new gender strategy involves rolling out a
time, and when they work they earn 10 to 30 percent tracking mechanism to better capture lessons and
less than men.37 Female owners of formal small and results throughout the implementation cycle and,
medium-sized businesses face a credit gap of roughly critically, at the close of an IDA-funded project. It
US$300 billion.38 Gains in voice and agency are uneven, will be important to continue to build on the work
with changes in the enabling environment still not fully that has been done under IDA17 in these areas
translated into practice. Gender-based violence is a
constraint to women’s voice and agency, especially
in FCSs. Companies realize they are affected as well,
particularly in countries with high incidence of intimate
III. CLIMATE CHANGE
partner violence, where they often record a loss of
productivity. More countries have adopted laws against With climate change threatening to roll back decades
child marriage, but in one-third of the countries for of development gains and put prosperity out of reach
which data are available, more than 30 percent of girls for millions of people, IDA continued its special theme
are married by age 18. The proportion of seats held by focus on this issue during IDA17. Managing risks from
women in national parliaments has increased from 13 more frequent and intense disasters and climate
percent in 1990 to 22 percent in 2014, but these are small events is essential to safeguarding development
absolute gains. Gender equality is also about changing results and achieving the WBG goals of eradicating
the norms and expectations about female and male extreme poverty and improving shared prosperity in
roles and ultimately changing power relations, with men a sustainable manner. Many IDA countries are highly
as key actors for, and beneficiaries of, fostering a more vulnerability to climate change, but have low total
balanced distribution of power within governments, greenhouse gas emissions (figure 17).39 The WBG’s
companies, formal and informal institutions, and Shock Waves Report notes that the impact of climate
households. change related shocks on poverty reduction alone
could result in more than 100 million additional people
For IDA, there is much to be done to address this living in poverty by 2030.
unfinished business. Moving forward, IDA’s work in the
area of gender requires a stronger focus on impact MAINSTREAMING CLIMATE AND DISASTER
evaluation, tracking of results and lessons learned. RISK MANAGEMENT
For IDA18 and beyond, concrete measures that can
contribute to these objectives include: IDA17 positioned the WBG to be an essential partner
for integrating climate risk into national development
• Impact evaluations on women’s economic and project planning and prioritization, enhancing
empowerment have informed policy and the security and stability of the poorest from climate
operations, especially in Africa, but need to be shocks. IDA17 generated about US$10 billion in climate
expanded. New Regional Gender Action Plans will change co-benefits, delivered through 259 projects.40
be launched and implemented in the Europe and The portion of climate-related financing under IDA
Central Asia Region, the Middle East and North the commitments steadily increased to 22 percent in FY17
Africa Region, and Africa Region. from 17.4 percent in FY16 and 16 percent in FY15 (also
see figure 18).
37 World Bank. 2011. World Development Report: Gender Equality and Development. Washington, DC: World Bank. And World Bank. 2014.
Gender at Work: A Companion to the World Development Report on Jobs. Washington, DC: World Bank Group.
38 International Finance Corporation and Global Partnership for Financial Inclusion. 2011. Strengthening Access to Finance for Women-Owned
SMEs in Developing Countries. Washington, DC: International Finance Corporation.
39 In 2012, the average total emissions including Land-Use Change and Forestry were 59.4 million tons CO2 equivalent for IDA countries and
364.8 million tons CO2 equivalent for non-IDA nations. The emissions of IDA countries account for about 9 percent of the current global
greenhouse gas emissions based on World Resources Institute CAIT data, April 2016.
40 Fulfilling an IDA17 policy commitment, the Bank also started to systematically measure the share of IDA investments with disaster risk
management co-benefits. Building on an FY12-15 pilot utilizing a co-benefit tracking system, the Bank can now systematically capture the
financing of disaster risk management in all its lending operations, irrespective of their objective(s).
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IDA17 Retrospective: Maximizing Development Impact
Figure 17. IDA Countries are Highly Vulnerable and Low Emitting
Source: World Bank Group Climate Change Action Plan (2016-2020), based on WBG data.
Figure 18. IDA Climate-related Lending All IDA country strategies have incorporated climate
Commitments (US$ million) change and disaster risks. Thirty CPFs and Country
Engagement Notes reached Board approval during
5,000 IDA17, of which 29 incorporated climate and disaster
risks at decision stage, and 24 incorporated these at
the concept stage. It can be difficult in such settings to
4,000 ensure adequate coverage of climate change risks due
to competing priorities that warrant urgent attention.
3,000
1,011 1,104 2,280
2,000
1,000 2,046 1,719 2,079
0
FY15 FY16 FY17
Ad pt tion Fin ncin Miti tion Fin ncin
Source: World Bank.
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IDA17 Retrospective: Maximizing Development Impact
The Many Faces of IDA: Vietnam
“Why are you talking about disaster preparedness, do you want disasters to come to you?” says Tran
Thi Duong, chairperson of the Women’s Union of Duy Phu commune in Vietnam’s central Quang Nam
province, recalling a question a fellow villager posed when she raised the topic. “That very night, a
flash flood hit. One family was almost buried in mud when their house collapsed. After that incident,
the villagers really understood the need for disaster preparedness,” she recounted.
Duong was among representatives from 100 communes across central Vietnam who had met to
discuss and share lessons following the implementation of disaster risk management activities in their
communities. In the past two decades, disasters in Vietnam have caused more than 13,000 deaths
and damage to property in excess of US$6.4 billion. Floods in 2010 destroyed 350,000 houses and
caused disruption to telecommunications, irrigation systems, energy supplies and transport networks.
As a part of IDA’s ongoing US$150-million Managing Natural Hazards Project, the Government of
Vietnam is using US$18.5 million to support community-based disaster risk management across 100
communes in 10 central provinces. The preparation and implementation of the project is supported
with technical assistance from The Global Facility for Disaster Reduction and Recovery to help
integrate global best practices on disaster risk management. The approach it uses is unique as it
recognizes that communities know best when it comes to living with natural hazards. It takes into
account the knowledge and expertise of local villagers, which has proven effective in reducing losses
from disasters.
Duong is now an advocate for the community-based disaster risk management investments in her
commune. “In the past, there was nowhere to go when a storm or flood hit. Now we can go to the
community shelter, built with funding from the project.” She added, “When storms and floods come,
trees and even houses are uprooted. People have been killed by lighting. From the training, we know
how to protect ourselves when storms and floods come. We know how to strengthen our houses, and
how to avoid getting struck by lightning.”
Based on the success of the project’s first phase, community-based disaster risk management
activities will be rolled out across the remaining 73 communes using project funding, and may be
expanded to other provinces in the future.
Click here for more on the Managing
Natural Hazards Project.
Photo: A flood preparedness drill in Duy Tan commune,
before the annual flood season in July.
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IDA17 Retrospective: Maximizing Development Impact
Box 16. Making Climate Change a Key Priority in Country Analytics, Strategies,
and Investments: the Uganda Experience
Uganda offers an example of how climate change can be well-incorporated into a country strategy. The
2015 Systematic Country Diagnostic referenced the potential impact of climate change on growth. For
example, climate risks were identified as a constraint to infrastructure development and agricultural
productivity. Building on this work, and reflecting the government’s desire for support in addressing
climate change, the FY16-21 Country Partnership Framework developed the case for inclusion of climate
considerations. It identifies corresponding activities that boost climate adaptation and mitigation
measures. These support not just the IDA17 commitment, but help meet Uganda’s long-term needs for
the development of a resilient landscape program. For example, the Country Partnership Framework
discusses the development of integrated water and forest resources management plans for key
catchments to mitigate impact of irrigation challenges in dry years. Improved management of Uganda’s
natural resources is essential given that the country has been consuming its natural resources at an
unsustainable rate, and the impacts are likely to impact the poor disproportionately.
A key lesson learned from the experiences in Uganda during IDA17 is that early engagements and
deeper dialogues with country teams help drive stronger climate narratives in country diagnostics
and thus raise the ambitions of Country Partnership Frameworks. Accordingly, the IDA17 commitment
related to such Frameworks has been expanded during the IDA18 process to now also include country
diagnostics to ensure a deeper consideration of climate change in IDA countries.
One of the remaining challenges with incorporating climate change considerations into Country
Partnership Frameworks is highlighting climate change as a possible risk factor to the country’s
macroeconomic performance in the longer term, whether as a threat to fiscal sustainability or disruption
to growth sectors. The result is that Frameworks still show shades of compartmentalizing climate
change into resource management pillars rather than core discussions around growth, jobs, and
competitiveness. The inclusion of climate risks and Nationally Determined Contributions considerations
into the Systematic Country Diagnostic guidance (as well as increasing the use of Development Policy
Operations to track incorporation of climate considerations in countries’ fiscal policies and regulations,
as committed through the IDA18 replenishment) are expected to help better mainstream the climate
change narrative into countries' macroeconomic frameworks in the years ahead.
All IDA17 operations have been screened for climate investments. For example, the Bangladesh Regional
and disaster risk. This new and essential screening Waterway Transport Project took action to incorporate
step helps IDA further reflect climate and disaster climate and disaster risks into project design following
resilience in key development policies, programs, and the screening process, including enhancing the
projects for its clients. Specifically, the WB Climate and resilience of terminals and landing stations through
Disaster Risk Screening Tools link operational teams design adjustments that account for climate hazards.
to climate projections, country adaptation profiles, This included recognition of an expected increase in
and disaster risk data sources from the WBG’s Climate variation in river flows and more intense and frequent
Change Knowledge Portal. The data, combined extreme storm events. Nevertheless, more efforts are
with users’ understanding of the subject matter and needed to further integrate resilience measures into
country context, generates an early due diligence IDA operations building on the initial risk screening
characterization of risks to help inform dialogue, results to achieve enhanced project design and
consultation, and planning processes at the project implementation and involve more detailed analysis
and program levels. The tools provide a systematic around the most appropriate resilience-building
process for an initial consideration of short- and measures; and implement these measures.
long-term climate and disaster risks in programs and
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IDA17 Retrospective: Maximizing Development Impact
The Many Faces of IDA: Nicaragua
“With this road constructed here, I now plan to expand and open another restaurant and a hotel along
the road because of increased number of visitors,” says Gioconda Saenz Ibarra, a local restaurant
owner in Nicaragua’s Caribbean coast area.
The Caribbean coast region of Nicaragua is vulnerable to heavy rainfall and floods and the area needed
all-weather roads to help attract tourism and allow people to move more freely. An IDA-funded rural
road improvement project constructed more than 26km of concrete roadway, which was specifically
designed to withstand climate change impacts. The project benefitted nearly 53,000 people by
giving them a dependable and safe connection between their Caribbean region and the Nicaraguan
mainland, and it provided 400 temporary jobs during construction. Not only will the improved road
between Bluefields and San Francisco enhance the region’s allure as a tourist destination, it will also
enable residents access to markets and services and should contribute to the growth of long-term
employment. The majority of local population are Creoles, who are of African origin and speak a
Creole Caribbean English. Others include native groups of Ramas and Garifunas, as well as Miskitos
and Mayangnas indigenous people. The construction of an adjacent road section to complete the
connection to Managua is being financed by the IDB.
Photo: Gioconda Saenz Ibarra (left) and her restaurant.
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IDA17 Retrospective: Maximizing Development Impact
IDA17 delivered an integrated approach to climate Principe, Honduras, and Nicaragua), while others
change investment planning within a set of IDA were less clearly linked with future operations and
countries through multi-sectoral plans (MSPs) and investments (e.g., Vietnam). Challenges to preparing
investments. In total, IDA17 achieved the creation of these plans included specific climate data constraints
24 MSPs out of the targeted 25 countries. Developing and limited platforms for coordination across sectors.
the MSPs proved to be complex, and success in The process in those countries that undertook an
informing country processes and investments varied MSP demonstrates the benefits of a programmatic
considerably across countries. Some were particularly approach to climate change planning (see box 17).
strong (e.g., Ghana, Cameroon, São Tome and
Box 17. Key Lessons of Developing Multi-Sectoral Plans and Investments
Overall, the MSP process has highlighted the benefits of programmatic approaches to climate change
planning. This multi-sector effort has shown that there is a need to shift climate change planning efforts
beyond a project-by-project approach, and toward one that is structured as a long-term, strategic
selection of linked investment projects and activities. Doing so will help to achieve large-scale, integrated,
and systematic impacts that can leverage co-financing opportunities. Highlights and lessons from the
MSP process with climate change indicated that:
• Understanding climate and disaster risk is clearly needed. In almost all MSP countries, there is a need
for increased awareness of climate change, its current and future impacts, and the likely projected
changes in key variables. In many countries, for example Uzbekistan and Ghana, meteorological
and hydrological networks are managed by different entities, presenting challenges on information
collation. Also, although Bank sectors such as natural resource management and agriculture have
undertaken climate-related risk and scenario assessments in almost all selected countries, the
inclusion of current and future risk scenarios into medium- and long-term development planning
remains preliminary. There is also a clear need for specific and context-relevant climate information
that is easily understood. Translating climate scenarios for specific areas and sectors is challenging,
so it may be useful to take approaches that can use historical and anticipated changes in climate.
• Strengthening coordination across sectors is challenging, but it pays off. Dialogue that facilitated
information sharing among stakeholders strengthened the coordination, planning, implementation,
and monitoring processes linked to climate change and extreme weather risk management,
particularly in Nicaragua and Honduras. However, in most other countries, there were very limited
platforms (or none at all) for such coordination, and the teams had to form these. This added to the
time taken for the work to be conducted and then integrated into country processes.
• Embedding MSPs into the Systematic Country Diagnostic/Country Partnership Framework process
helps with coherence internally and in the country.
• Using a programmatic approach is essential for integrating climate and disaster risk and resilience
into development sectors. The MSP approach, or similar integrated planning approaches, need
time. Future efforts could start with a smaller set of sectors or look to a selected part of the country,
rather than attempting to be all-encompassing. With time and through improved engagement of
different stakeholders, such processes have the potential for serving as the longer-term planning
mechanism for investment and policy changes that mainstream climate and disaster risk and
resilience across development interventions.
Although the MSP process presented varied challenges and was not entirely implemented as envisaged,
the effort in the countries looks promising and is providing inputs into other initiatives. Since the IDA17
policy commitments were agreed, the climate and disaster resilience area has seen many international
advancements, including additional support for such multi-sector planning from the Pilot Program
for Climate Resilience, the Green Climate Fund supporting similar efforts, and countries establishing
comparable processes for their Nationally Determined Contributions as part of the United Nations
Framework Convention on Climate Change. In addition, the WBG’s Systematic Country Diagnostic
process now covers many of the cross-sector, diagnostic-related efforts envisaged in the MSPs.
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SUSTAINABLE ENERGY FOR ALL ensure a secure supply of domestic gas to power
plants and will replace expensive and polluting liquid
IDA17 helped countries develop national energy action fuels (see box 18). The Tanzania Rural Electrification
plans and investments to achieve the Sustainable Program, which benefitted from US$200 million IDA
Energy for All objective of universal access to energy financing, attracted about US$1.1 billion in public co-
by 2030. IDA17 supported clients in developing financing and US$500 million in commercial financing,
affordable, reliable, sustainable and modern energy enabling a boost in the supply of renewable energy
systems, through direct investments, and by enabling in rural areas while strengthening sector institutional
investments through guarantees and “de-risking” capacity. The Kenya Electricity Modernization
mechanisms. For instance, the Ghana Sankofa Gas Project, financed by an IDA credit of US$250 million,
Project used a US$500 million IDA guarantee— complemented by an IDA Guarantee of US$200
alongside an additional US$200 million IBRD guarantee million and co-financing of US$312 million, provided
—to spur US$7.9 billion in commercial funding for 619,000 people with access to electricity and helped
upstream gas development. After commissioning improve utility operations and management.
during the second quarter of 2018, this project will
Box 18. Snapshot of WBG Work on Sustainable Energy for All in IDA17
IDA has a long track record of supporting the expansion of energy access, both on- and off-grid, and rural
and urban electrification. Tens of millions of people have gained access to electricity as a direct result
of IDA programs and financing. The vast majority of the energy portfolio—whether power generation,
energy efficiency, support to clean cooking and heating, technical assistance and policy support, and
transmission and distribution—contributes in one way or another to improved or expanded energy
access. Examples include:
In Kenya, IDA supports over US$1.3 billion of geothermal generation, transmission, distribution, off-grid
and clean cooking investments. This has helped Kenya expand electricity access rates from 23 percent
in 2009 to about 50 percent (about 4 million households) in 2016. IDA, the Global Partnership for
Output-Based Aid and Kenya Power have teamed up to provide safe, reliable and affordable electricity
in Nairobi’s slums, where the number of new connections rose from 5,000 in 2014 to 150,000 in 2015.
In Bangladesh, the Solar Home Systems Program—the fastest growing program of its kind in the world—
has provided 4.2 million rural homes and shops with access to modern energy. Based on the experience
from this successful project, the renewable energy program in Bangladesh is diversifying into renewable
energy-based mini-grids, solar irrigation pumps, and improved cookstoves, with support from the World
Bank. Currently, 10 mini-grids are providing grid-quality electricity to 3,500 rural customers. About 500
solar irrigation pumps have been installed and more than 1 million improved cookstoves have been
disseminated.
In Rwanda, the IDA-supported Electricity Access Scale Up and Sector Wide Approach Project is the
largest single project contributing to the country’s Electricity Access Rollout Program. Between 2009
and 2017, the project has connected nearly 1.2 million people (or 256,816 connections) to the grid, and
helped take electricity to 88 percent of schools, 76 percent of health centers, and more than 94 percent
of administrative centers in the country. Thanks to the project, the rate of grid-connected electricity
access in Rwanda had risen to 32 percent in 2017, compared to just 9 percent in 2009.
In Ethiopia, through the IDA-financed Ethiopia’s Electricity Network Reinforcement and Expansion
Project, the World Bank is supporting efforts to improve the reliability of the electricity network and
to scale up energy access through off-grid solutions, helping provide electricity to over one million
households, mostly with solar lanterns and solar home systems.
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IDA assistance to support Sustainable Energy for
All goes far beyond just financing. IDA17 provided
IV. FRAGILE AND CONFLICT-
technical assistance that helped its clients create
enabling environments to support renewable AFFECTED STATES
energy development, including building institutional
capacity, supporting the design of appropriate legal FCV not only threaten millions of lives globally, they
and regulatory frameworks, transferring knowledge also represent serious threats to the achievement
on modern planning methodologies and tools, and of SDGs and put existing development gains at
structuring mechanisms to address off-take and risk. Despite tremendous progress in reducing the
credit risk. number of extreme poor in the world in the last
quarter century, extreme poverty in FCSs is rising.
LOOKING AHEAD It is estimated that 50 percent of the world’s poor
are expected to live in IDA FCSs by 2030. Trends
IDA17 successes—combined with the growing show an increase in the number of conflicts and their
ambition and demand from client countries for climate changing nature introduces more complexity as to
change mitigation—has created a greater focus on their causes (see chapter 1). FCV is not just limited to
greenhouse gas accounting and carbon pricing, the poorest countries, it can also be found in higher-
support to renewable energy projects, and more capacity countries, including at subnational levels. The
upstream engagement on private sector investments: causes and consequences of fragility are often not
confined by borders and can generate negative spill-
• Beyond mainstreaming climate change overs for other countries through violent extremism
considerations in project design, IDA18 built on this and forced displacement. Violence and conflict have
IDA17 achievement and has introduced an even displaced an estimated 60 million people, including
greater focus on greenhouse gas accounting as 20 million refugees. Fragility is also intertwined with
well as an internal shadow price of carbon. Building global dynamics such as migratory and demographic
a carbon price into investment decisions helps IDA pressures, illicit flows of drugs and arms, and climatic
clients more cost-effectively reduce greenhouse and environmental stresses. These factors require a
gas emissions. It will be important for the climate- sustained engagement in FCSs and a commitment to
related financing in IDA18 to maintain or even responses that adapt to different forms of fragility and
surpass what IDA clients achieved in IDA17. This that can stretch from active conflict to fragility traps
could pose a challenge, however, as countries with and emerging instability.
traditionally high climate co-benefits have recently
graduated from IDA (e.g., India and Vietnam). Enhancing IDA17’s engagement in FCSs not only scaled
up resources but also introduced a differentiated
• The dramatic decrease in the cost of solar and wind approach that takes into account different dimensions
energy technologies globally will change the mix of of fragility and promotes the tailored responses.
renewable energy projects supported under IDA18. IDA17 boosted resources to FCSs to US$10.2 billion
While large hydropower facilities comprised many in real terms from US$7.7 billion during IDA16. This
of the renewable energy generated in IDA17, current was made possible by changing the weight allocated
expectations are that IDA18 will support only a to performance in IDA’s allocation framework (see
few relatively large hydropower energy projects chapter 2, section 4 for further details), as well as
in large countries, and a large number of smaller through the introduction of exceptional allocations
non-hydropower renewable energy projects (solar, for countries at an important juncture in their
wind, geothermal, and other). development trajectory. Countries that could access
these additional resources had “turn-around” potential
• Building on IDA17 experiences, the “maximizing for moving quickly out of their fragile situations (see
financing for development” initiative incorporates box 19).
greater emphasis on policies, institutions and
regulations to encourage and enable private IEG evaluations confirm that “since IDA identified
sector investment in renewable energies and support to FCSs as a strategic priority, there has
also on improving financial viability of the sector been demonstrable improvement in Bank Group
and infrastructure (i.e., transmission) to absorb support and IDA effectiveness” in these countries.
larger volumes of variable renewable energy and An important lesson on required resources to
commercially-financed generation projects. successfully support fragility situations was that
“projects in FCSs will need more support because
they are prepared more rapidly and have weaker
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Box 19. IDA17’s Support to Vulnerable but Advancing Nations Through the
Turn-Around Regime
The new exceptional allocation regime for countries facing “turn-around” situations was introduced
in Madagascar, Guinea-Bissau, and Central African Republic as they looked to accelerate their
transition out of fragility. Together, these countries received support totaling US$552 million during
IDA17 under the Turnaround Regime: Central African Republic (US$72 million in FY17); Guinea-
Bissau (US$20 million in FY16-17); and Madagascar (US$460 million in FY16-17).
• In the Central African Republic, a return to constitutionality with the election of a new president
and the National Assembly was seen to represent a turnaround situation as envisaged under
the IDA17 regime. Strong WBG involvement in central and eastern regions of the country and
in front-line areas—where the Bank is the first development actor to reengage significantly
—constituted significant contributions to long-term peace-building in the country, progress
toward the WBG’s twin goals, and improvement of the population’s living conditions in FCSs.
• In Guinea-Bissau, the Bank saw clear signs of emerging resiliency in 2014-15 and a joint Bank-
UN mission found that the authorities’ commitment to policy changes offered an opportunity
to enter an era of stability and progress supportive of sustained medium- to long-term growth
and development, despite a clearly present risk of rising political vulnerability. Enhanced IDA
support focused on rapid strengthening of basic services provision and social assistance to the
poor, and support for key reform efforts and investments required to boost inclusive growth and
strengthen the country’s development potential. Owing to a deteriorating political environment,
the Turnaround Regime program was ultimately discontinued; however, the WBG has been able
to sustain its engagement with the authorities, and the government continues to implement
WBG operations reasonably effectively.
• In Madagascar, a return to constitutional order opened the way for the country to reestablish a
positive development track by addressing key sources of fragility: weak governance and rule of
law; a high rate of poverty and social exclusion; a lack of private sector investment to support
growth and generate employment.
The differing levels of progress and outcomes seen among the three IDA17 recipients of exceptional
Turnaround Regime support are consistent with the finding in the World Development Report 2011:
Conflict, Security, and Development that the path out of fragility is often very long and uneven,
with countries experiencing periods of progress that can be interrupted by cycles of repeated
violence and instability. Further to the unpredictable nature of “turn-around” situations, for IDA
to effectively engage in countries characterized by promising but inherently fragile turnaround
opportunities, it is crucial that resources and support be provided in a timely manner when there is
enough reform momentum to make best use of those resource.
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client capacity”, especially considering that “the indicators and Country Policy and Institutional
average administrative budget to support IDA Assessment (CPIA)-based fragility risk factors. This
operations in FCSs declined” while allocations to work further informed the differentiated approach
these clients increased.41 IDA17 policy commitments articulated under IDA18, a policy commitment to adopt
integrated many lessons for further improvement from a new measure of fragility and to identify countries at
IEG’s comprehensive evaluation of Bank engagement risk of violence and conflict.
with FCSs42—with particular focus on: mainstreaming
fragility in the new country engagement model; Through integrated strategies and programs, and
conducting enhanced fragility assessments to help using new analytical tools, IDA17 was better able to
integrate fragility and conflict risks in the design of address the sources of fragility and violence. Under
country assistance strategies and programs (with IDA17, the WBG committed to use analyses of fragility
better associated monitoring); and paying greater and conflict drivers to inform its CPFs for FCSs. Risk
attention to results on the ground. Other key areas and Resilience Assessments44 are now part of country
include more attention to inclusive growth and jobs diagnostics and strategy processes. In 2016, the
strategies, taking greater advantage of Bank Group World Bank produced a guidance note on fragility
synergies, and scale up in FCS allocations as well assessments to establish a more systematic approach
as administrative budget support to IDA operations across countries and regions. Increasingly, preparation
in these countries. The IDA17 mid-term review and of Risk and Resilience Assessments includes
subsequent discussions for the next replenishment, development partners to ensure a shared vision of the
have also emphasized the importance of staffing and dynamics of fragility and possible responses, and these
new mechanisms to help address issues of protracted studies are seen to have greatly benefitted the range
forced displacement—which, for example, led to the of WBG strategy and planning work with clients.45 For
creation of the new refugee sub-window in IDA18. example, in response to the political crisis in Burundi,
a Risk and Resilience Assessment was conducted
LEARNING FROM SUCCESSES AND in April 2016 and updated in February 2017. The
SHORTCOMINGS IN IDA’S WORK WITH assessment provided concrete recommendations in
FRAGILE AND CONFLICTED-AFFECTED STATES response to its analysis of drivers and risks, including
having communities take on project decision-making
IDA17 better tailored its approaches for fragility by to prevent elite capture and political manipulation.
learning from operational experiences—including The Assessment also recommended building conflict
greater engagement beyond the Harmonized List of prevention and trust-building components into
Fragile Situations,43 focus on long-term mitigation, projects, establishing clear guidelines for beneficiary
and attention to supranational and regional dynamics. selection and geographic selection of projects,
During IDA17, the WBG initiated a review of its the use of third-party monitoring and reliance
definition of fragility and the underlying metrics used on international and national non-governmental
for identifying it. The review highlighted the need to: (i) organizations to ensure neutrality, and the inclusion of
provide greater attention to relevant fragile situations fragile/conflict indicators into project monitoring and
beyond those on the harmonized list; (ii) focus on evaluation. Other examples of how Risk and Resilience
mitigating the sources of long-term FCV in addition to Assessments have influenced CPFs in FCSs include
responding to harmful outcomes; and (iii) pay greater commitments to better geographic or demographic
attention to supranational and regional dynamics, as targeting of service provision (health, education,
well as the ripple effects from migratory and refugee sanitation) in Ukraine; strengthening of systems for
movements, illicit flows of drugs and arms, and climatic financial management, including expenditure policy
and environmental stresses. The Bank also developed and planning, in Afghanistan; and improving social and
a working model for identifying fragility based on economic participation and representation through
an expanded set of metrics, including key outcome the Citizens Charter program, also in Afghanistan.
41 Independent Evaluation Group (IEG). 2016. Learning from IDA Experience: Lessons from IEG Evaluations. Washington, DC: World Bank.
42 Independent Evaluation Group (IEG). World Bank Group Assistance to Low-Income Fragile and Conflict-Affected States. Washington, DC:
World Bank.
43 The WBG annually releases the Harmonized List of Fragile Situations. The first such list was compiled in FY06 and has gone through
a series of changes in terms of classification from the Low-Income Countries Under Stress List (2006-2009), to the Fragile States List
(2010), to the now Harmonized list of Fragile Situations (2011-2015). The concept and the list have evolved as the WBG’s understanding of
the development challenges in countries affected by violence and instability has matured.
44 Fragility Assessments have been replaced by the Risk and Resilience Assessment, which represents an improvement in the previous
methodology by including an assessment of risks and triggers, as well as operational recommendations.
45 Independent Evaluation Group (IEG). 2017. World Bank Group Country Engagement: An Early-Stage Assessment of the Systematic
Country Diagnostic and Country Partnership Framework. Washington, DC: World Bank.
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IDA17 Retrospective: Maximizing Development Impact
Building on greater knowledge and understanding PARTNERSHIPS IN SITUATIONS OF FRAGILITY,
of what works in FCSs, IDA17 supported clients in CONFLICT AND VIOLENCE
creating jobs in spite of the fragility they face. In
addition to the Jobs Diagnostics rolled out in six FCSs, The WBG has strengthened its partnerships with the
the Integrated Framework for Jobs in Fragility and UN, other multilateral development banks, and bilateral
Conflict synthesizes the Bank’s operational knowledge development partners for a more effective response
on the issue. The effort has further included a to fragility. The WBG has also continued to engage
stocktaking of employment and peace-building in the International Dialogue on Peacebuilding and
jointly with the UN and the International Labour State-building, a partnership that brings together the
Organization. Impact evaluation of ongoing projects G7+ countries, donors and civil society actors. The UN
informed project and program design of new projects, and WBG have collaborated on strategy, operations,
including the Evidence for Peace program, which and analytical work. They undertook joint fragility
seeks to increase the quantity and quality of impact assessments in Guinea-Bissau and Cameroon in 2015
evaluation evidence and data while addressing critical and in Central African Republic in 2016. The Recovery
knowledge gaps in the sector with the view to inform and Peacebuilding Assessment approach to conflict
more effective policies and programs. At the end of engagement and planning—a partnership between the
IDA17, 35 impact evaluations in 23 countries (including UN, WBG, and the European Union (EU) in transition
13 different FCSs), covering more than US$2.1 billion of situations—was reviewed and updated, with one such
Bank operations, were ongoing or finalized. exercise performed in response to the peace agreement
reached in Mali in 2015. The WBG has also expanded
its partnership with the UN High Commissioner on
Refugees, building on experience from operations in
the Great Lakes and the Horn of Africa.
Box 20. Partnering Across the Development-Humanitarian-Security Nexus
The Citizens’ Charter Afghanistan Project introduced a new multi-sector approach to deliver a broader
range of basic services and help foster trust between citizens and the state. The Citizens’ Charter
is the first inter-ministerial program where ministries collaborate on a single program in both rural
and urban areas. This project also brings with it several innovations in terms of social mobilization,
women’s participation, and technical service delivery.
In 2016, IDA made a US$200-million grant under the Yemen Emergency Health and Nutrition Project
to deliver critically-needed services to Yemenis most affected by the conflict, while at the same
time preserving the capacity of Yemen’s health system. The project was innovative in its use of UN
agencies, in this case the World Health Organization and UNICEF, as implementing partners. As of
June 2017, nearly seven million Yemenis (60 percent of which are female, and nearly 80 percent
of which are children under the age of five) had received access to essential health, nutrition, and
population services.
In the same year, IDA undertook the Development Response to Displacement Impacts Project in the
Horn of Africa to improve access to social services, expand economic opportunities, and enhance
environmental management for host communities affected by refugees in targeted areas of Djibouti,
Ethiopia and Uganda. The project was delivered through a community-development approach to:
(i) build grassroots institutions; (ii) ensure communities are heard in decision making; (iii) strengthen
decentralized government administrative functions; and (iv) invest in public service delivery and
social mobilization to enhance social cohesion among beneficiary communities.
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IDA17 Retrospective: Maximizing Development Impact
In April 2016, the WBG re-engaged in the Central African strategies. It also broke new ground by establishing
Republic. Together with the EU and UN, it quickly a new institutional framework and partnership to
conducted a Recovery and Peacebuilding Assessment guide the implementation phase. This framework was
to gain a joint understanding of the challenges facing instrumental in generating US$2.2 billion in support
the country and to prioritize work covering political, from an international donor conference in Brussels in
security, humanitarian and development activities 2016.The thorough analytical work that went into the
over 2017-21. It was innovative in that it sought and assessment also resulted in IDA becoming the biggest
reflected public views in setting the priorities for the donor to the Central African Republic.
resulting peacebuilding plan and its implementation
The Many Faces of IDA: Central African Republic
“The project helped me a lot because I was unemployed despite having a master’s degree,” says
Bertrand Barafa Wikon, who secured a job as a team leader in Begoua under the IDA-backed LONDO
initiative. “In the short time that I have worked, I have already been able to earn enough money to
support my family. I am even getting ready to start up my own business.”
The World Bank’s LONDO Project has created thousands of temporary jobs amid crisis (LONDO
means “stand up” in Sango, the official language). The project has helped maintain nearly 1,500
kilometers of roads in 49 sub-prefectures. So far, 23,750 of the 35,500 temporary jobs expected by
the end of the project have already been created.
In Bimbo, the most densely populated suburb in the capital city of Bangui, which benefited from this
operation in mid-2016, the views of Albert Panga, the sub-prefect of the area, speak volumes about
the impact of the LONDO initiative: “The project was very well received because it created 500 jobs in
my area and has had a major impact on sanitation, with the clearance of clogged streets, the cleaning
of drains, the collection of garbage on the sides of the roads, and the cleaning of public places and
administrative centers,” he says.
Photo: Construction work underway in the Central African
Republic
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IDA17 Retrospective: Maximizing Development Impact
The Many Faces of IDA: Yemen
Zahra’a Hajar, a widow, and her three children, were forced to leave Haradh to seek safety in Mustaba
(Hajjah) because of the spread of the fighting in Yemen. Zahra’a has received her first income from
her participation in a cash-for-work project.
“The (project) provided us a job by which we built the hut that now shelters us,” says Zahra’a. “We are
now building the hut’s roof. The winter now is very cold, but we can enter our hut to sleep, safe from
winds and rains. We did not expect anyone to provide us with this kind of shelter”.
Yemen has been engulfed in conflict for more than two-and-a-half years, experiencing economic
collapse, famine, and the world’s largest Cholera epidemic. Making full use of IDA’s ability to respond
rapidly, IDA has provided more than US$1.13 billion in resources since July 2016 to address the growing
need of vulnerable Yemenis. The Yemen Emergency Crisis Response Project financed under IDA17 has
placed a premium on preserving hard-won institutional and implementation capacity while supporting
Yemenis affected by conflict, insecurity, and rising poverty. Ongoing activities focus on achieving
results in three critical areas spanning the “humanitarian-development nexus”: investments in human
assets; investments in institutional assets; and preparations for national recovery and reconstruction.
The emergency operations underway have represented an effective WBG/UN collaboration – where
the WBG contributes financing as well as technical and operational expertise and UN Agencies provide
assistance on the ground through UNDP, WHO, and UNICEF.
To date, IDA—jointly with its partners—has ensured that 5 million children have been immunized
against polio, 7.1 million Yemenis accessed primary health care services, and 700,000 women and
children under five have received basic nutrition services. Since the Cholera outbreak, IDA has ensured
successful treatment of more than 350,000 suspected cases and the training of 3,200 health workers.
The project has provided cash transfers to over 1.33 million households, or 7 million individuals, that
has helped poor Yemenis buy food and necessities.
Click here for more on the Yemen
Emergency Crisis Response Project.
Click here for UNDP project videos and
from UNICEF here. You can also learn of the
experiences of one female health educator
supported through the program by clicking
here to see a World Bank video.
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Box 21. Re-engagement with Myanmar
Following a long period of military rule and isolation, Myanmar today is one of the least developed
countries in Southeast Asia (with a population of 51.4 million, the country has an estimated per capita
GDP of US$1,105). More than two-thirds of Myanmar’s poor live in rural areas where decades of under-
investment have severely limited access to essential infrastructure and services. Yet beginning in 2011,
Myanmar launched major political and economic reforms, including a focus on reducing rural poverty
and a vision of “people-centered development” as a guiding principle for key reform frameworks that
aimed to reverse decades of top-down planning. The WBG re-engaged with Myanmar in 2012 in support
of its historic transition.
At the end of IDA17, the portfolio consisted of 13 operations with a total commitment of US$2.08
billion. Investments have focused on expanding and improving basic social services, providing critical
economic infrastructure and building fundamental state institutions and systems. The largest sectors are
energy and mining (27 percent), transportation (16 percent) and water, sanitation and flood protection
(13 percent).
• Under the National Electrification Project, an estimated 700,000 people in rural areas have new or
improved access to electricity at around 140,000 households.
• Under the Decentralizing Funding to Schools Project, US$80 million is being spent on 47,000
schools benefiting 9.2 million students, including stipends to 150,000 poor students to help them
continue their schooling.
• Through the Essential Health Services Access Project, 11,824 primary health care facilities received
grants to improve their readiness to deliver services that are essential for maternal and child health,
emergency referral, and other forms of support for patients.
• In Rakhine state, grants are provided to electrify 1,300 public facilities (schools, rural health centers
and religious buildings) by an off-grid solar system. Another off-grid solar electricity system is
serving 44 villages in the two most conflict-affected, Muslim-majority townships.
• The National Community Driven Development Project has supported the construction of about
15,000 sub-projects across 8,500 villages, home to over 5.3 million people. In doing so, the project
has constructed over 5,200km of rural roads, increased access to clean water by improving over
2,600 water sources, rehabilitated more than 2,500 schools, and created over 2.8 million person
days of paid labor.
A new UN-WBG partnership network helps solve LOOKING AHEAD
operational bottlenecks through developing mutually
agreed implementation tools. Innovative partnerships The enhanced engagement in FCSs during IDA17
were developed in Myanmar, Yemen, Central African prepared the ground for a further step up during IDA18.
Republic, and Somalia in support of political transitions. Recognizing that different situations in these countries
In the area of crisis response, UN and WBG regional require varied responses, IDA18 has articulated an
and country teams have worked together to support even further differentiated approach tailored to
Ebola response and longer-term recovery planning country contexts. This approach also emphasizes the
for affected countries. At the same time, the Ebola imperative of prevention and the need for the WBG to
crisis highlighted remaining operational challenges, adopt a stronger risk-based approach. This led to the
such as the difficulty for borrowers with low capacity design of the new IDA Fragility Conflict and Violence
to contract UN agencies for provision of required Risk Mitigation Regime under IDA18 to incentivize
assistance and lack of off-the-shelf tools to efficiently investments in prevention. The regime allows four
formalize such engagements. eligible countries (Guinea, Nepal, Niger, and Tajikistan)
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to access additional funding of up to 33 percent of strategic engagement in these situations. In light of the
their regular IDA18 allocation. Related IDA18 policy continued urgency to address gender-based violence
commitments underscore the importance of shifting in FCSs and the initial experiences under IDA17 in
to a risk-based approach notably by expanding the working with refugee host communities, IDA18 put a
way the Bank identifies fragile situations and by dedicated focus on increasing operations that support
investing into knowledge and evidence on the role of the self-reliance of refugees and host communities
development cooperation in prevention of conflict. and increasing the number of operations that aim
to prevent and address gender-based violence. In
Other policy commitments under IDA18 build on addition, limitations of current financing mechanisms
the experiences gathered under IDA17, notably on to support refugees and the knowledge base built
the need to ensure that CPFs in FCSs and other under IDA17 (e.g., through the Bank’s flagship report
countries at risk are informed by Risk and Resilience on refugees), led to the design of the IDA18 sub-
Assessments and that partnerships drive the Bank’s window on refugees.
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Box 22. IDA17 Support to Refugees and Displaced People
During IDA17, the Bank financed several forced displacement-related projects to help countries
mitigate the impacts of conflict or facilitate post-conflict recovery. They also comprised exceptional
projects in non-IDA countries—Lebanon and Jordan—that benefit both Syrian refugees and their host
communities.
Examples included country-based and regionally-focused activities:
• Great Lakes Displaced Persons and Border Communities Project – US$20 million;
• Development Response to Displacement Impacts Project for Africa – US$175 million;
• Citizens’ Charter Afghanistan Project: Emergency Regional Displacement Response – US$127.7 million;
• Central African Republic: Service Delivery and Support to Communities Affected by Displacement
Project – US$28 million;
• Jordan: Economic Opportunities for Jordanians and Syrian Refugees – US$100 million;
• Lebanon: Reaching All Children with Education Support Project – US$100 million.
Beyond these projects, IDA17 acted to improve its knowledge around a wide range of fragility-
related issues, including the global forced displacement crisis. In 2016, the WBG launched the flagship
report Forcibly Displaced – Toward a Development Approach Supporting Refugees, the Internally
Displaced Persons, and Their Hosts. This report, jointly conducted with UN High Commissioner on
Refugees, described the need for a development approach that helps forcibly displaced people and
host communities, in particular by looking at the medium- and long-term socioeconomic issues. The
development approach is complementary to humanitarian responses and helps forcibly displaced
persons cope with specific vulnerabilities while ensuring that host communities continue their efforts
to reduce poverty in the face of the added demands posed by the inflow of displaced people.
This approach is now reflected in a new IDA18 facility for refugees and host communities that will
help refugee-hosting countries to manage the medium-term, socioeconomic dimension of refugee
situations and to advance a “progressive” policy agenda.
The WBG has also increased its analytical work on a range of topics related to forced displacement,
including macroeconomic and fiscal issues, labor, strengthening relevant data for evidence based
work, poverty, and social development.
IDA18 has a new strategic, differentiated approach to tackling fragility and cross-border dimensions.
It is underpinned by new financing instruments that have increased the focus on addressing and
mitigating the root causes of fragility and displacement. IDA countries can now access resources to
support efforts to mitigate emerging risks of fragility, strengthen preparedness, and promote more
effective, equitable and sustainable solutions for both refugees and their host IDA countries.
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IDA17 Retrospective: Maximizing Development Impact
SECTION 4: IDA17 LENDING TRENDS46
Reflecting the evolving priorities of IDA’s shareholders, Figure 19. IDA17 and IDA16 Resource
the IDA17 allocation framework enhanced financing for
FCSs, while maintaining steady resources for the other Allocation by Modality (share of total
poorest countries and those with a track-record of strong
performance. This section discusses the “architecture”
replenishment)
of the IDA17 allocation framework—as agreed with IDA17
shareholders, as well as the actual commitments at the
end of IDA17. It also discusses trends in performance of
the overall IDA17 portfolio of projects.
IDA16
ALLOCATIONS
At the start of each replenishment, the IDA envelope is
allocated according to the priorities, policy framework, and
operational architecture agreed with IDA Deputies. The
IDA17 operational framework included several changes
to the IDA Performance-Based Allocation system,47 as
well as increased financing for regional projects and the
Core IDA SUF Tr nsition l support
provision of exceptional transition support for India.
Re ion l Pro r m CRW Arre rs Cle r nce
Out of the IDA17 envelope of SDR37.9 billion,48 76
percent was allocated to countries’ core funding
based on country’s performance, which provides un-
earmarked resources to address development needs. SDR2.1 billion; the CRW 3 percent, or SDR1.2 billion; and
Consistent with the prevalent view that the country- a portion was set aside for clearing arrears (2 percent),
based development model remains the most effective and India received IDA resources for transitional
approach for achieving results in terms of sustained support (6 percent).49,50,51,52 While the share of resources
economic growth and poverty reduction in developing allocated under the Performance-Based system declined
countries, resources were directed to support various compared to IDA16, when such resources accounted for
sectors and themes consistent with country strategies roughly 90 percent of allocations, in absolute terms in
that had been jointly developed with country authorities. SDR (the currency used by IDA to allocate its resource
envelope), core resources remained largely the same at
The remaining IDA resources were distributed among about SDR29 billion, largely the same as in IDA16 (figure
special “windows” (15 percent) and transitional support 19). This reflects a demand-driven expansion of financing
(6 percent) to address specific development challenges through existing windows and the introduction of IDA
and resources for arrears clearance (2 percent): the support to clients on non-concessional terms (through
IDA17 Scale-up Facility (SUF) received 7 percent, or provision of exceptional transition support to India and
SDR2.8 billion; the Regional Program 5 percent, or the creation of the IDA17 SUF).
46 For further details on IDA17 commitments and disbursements (by region, sector and instrument), see companion paper IDA Financial
Assistance in IDA17: Progress Report on Commitments and Disbursements.
47 See Annex 2.
48 Based on the IDA17 commitment authority as of May 31, 2017 (see “Review of IDA17 Commitment Authority Framework (FY15-FY17) and
Transition from IDA17 to IDA18”, IDA/R2017-0239, June 16, 2017. Includes the increase of US$5 billion to the CRW, the SUF, and refugee
response in Lebanon and Jordan, agreed at the IDA17 Mid-Term-Review. Equivalent to US$53 billion at an exchange rate of 1 SDR = 1.4
USD. Note that the final IDA17 commitment authority, revised after the end of IDA17, incorporating further revisions and recommitments
from cancellations, stands at SDR38.5 billion. See “Review of IDA18 Commitment Authority Framework (FY18-20)”, forthcoming.
49 Equivalent US dollar amounts are as follows: SUF US$3.9 billion, Regional Program US$2.9 billion and CRW US$1.8 billion.
50 IDA also provided US$200 million in support on regular IDA credit terms to Jordan and Lebanon on an exceptional basis.
51 To enhance the transparency of allocations, since FY12 both country allocations and commitments have been disclosed on an ex-post
basis on IDA’s external website.
52 Percentages do not total 100 percent due to rounding.
77
IDA17 Retrospective: Maximizing Development Impact
Main IDA17 allocation enhancements focused on Figure 20. IDA17 Per Capita Allocation and
strengthening support to FCSs, while adhering to the
guiding principle of supporting good performances.
Country Performance Rating54
The following changes resulted in enhanced financing 30
for these countries during IDA17:
PBA Alloc tion per c pit (SDR)
25
• Adjustments to the IDA17 allocation framework.
There was an increased poverty orientation
20
within the Performance-Based Allocation formula
(through reduction of the Country Performance
15
Rating exponent from 5 to 4) and an increase in the
minimum annual base allocation for each country
(from SDR3 million to SDR4 million).53 10
• Introduction of an exceptional allocation regime 5
for countries facing “turn-around” opportunities
provided support to Guinea Bissau and Madagascar 0
Q5 Q4 Q3 Q2 Q1
in FY16 and to the Central African Republic in FY17
CPR Quintile ("Q5" represents hi hest performers)
(see box 19).
Source: World Bank.
• Measures adopted to ensure a smooth transition of
countries from IDA post-conflict and re-engaging through the special windows, was committed on
regimes back toward the regular Performance- credits, or as outright grants to countries that
Based Allocation system through an extension of qualified for such financing. A small share of funds
the phasing out period for countries scheduled to was provided on non-concessional terms (similar to
return to the regular system at the end of IDA16 IBRD) under the new IDA17 SUF.
(Afghanistan, Burundi, Central African Republic,
Democratic Republic of Congo, and Togo). This During the course of IDA17, reallocations of originally
also included aligning IDA support to such countries programmed resources helped IDA respond to new
under the Turnaround Regime. opportunities as they arose. About SDR800 million
(equivalent US$1.1 billion or roughly 2.6 percent) of
Top country performers continued to receive the core IDA resources were ultimately reallocated among
largest allocation per capita (figure 20). When countries, mostly due to unforeseen circumstances (e.g.,
excluding small states, whose average per capita political instability, fragility, and conflict) that precluded
allocations are disproportionately influenced by the full utilization of the country’s original envelope. In
minimum annual base allocation,54 IDA countries in the addition, some resources originally set aside under the
top performance quintile received about 2.5 times the Turn-Around Regime were reallocated once it became
per capita allocation compared to those in the lowest clear that reengagement in a few potential recipient
quintile – lower than the comparable ratio of 3.0 during countries would take additional time and they would
IDA16 and 2.7 in IDA15, reflecting the adjustments to not qualify for this kind of financing.
the IDA17 Performance-Based Allocation system.
COMMITMENTS
IDA17 maintained its overall concessionality level, with
a grant element of concessional financing of about IDA17 delivered the largest program of support to
53 percent.56.IDA concessional financing, including date, amounting to a record high US$55 billion.57 New
53 In IDA18, the Performance-Based Allocation formula has been further revised by increasing its poverty orientation and the annual base
allocation (from SDR4 million to SDR15 million), removal of 20 percent grant discount and MDRI (Multilateral Debt Relief Initiative) netting
out, and establishment of the new risk mitigation regime. These adjustments enable a further significant scale-up in IDA’s support to FCSs
and small states relative to IDA17.
54 Per capita allocations for small states were essentially uncorrelated with country performance, as roughly 85 percent of the countries’
allocations were due to their receipt of the annual minimum base allocation of SDR4 million.
55 Data excludes: Pakistan as capped "blend" country; inactive countries that were not allocated resources (Somalia, Sudan, and Zimbabwe);
countries whose allocations were determined under the "Turnaround Regime" or other exceptional regimes (South Sudan, Madagascar,
Guinea-Bissau and Central African Republic); and small states.
56 Grant element of concessional financing excludes transitional support to India, IDA hard-term credits as well as commitments through the SUF.
57 Applying the exchange rates at the time of approval of operations, IDA17 commitments amount to US$54.6 billion, rounded to US$55
billion. The US$54.6 billion comprised US$46.6 billion in credits, US$6.9 billion in grants, and US$1.1 billion in guarantees. The total amount
includes recommitments.
78
IDA17 Retrospective: Maximizing Development Impact
commitments were US$19 billion in FY15, US$16 billion Table 3. IDA Commitments
in FY16, and US$19.5 billion in FY17. The period saw 643
new operations financed by US$46.6 billion in credits58 by Financial Products
(85 percent), US$6.9 billion in grants (13 percent), In US$, billion IDA15 IDA16 IDA17
and about US$1.1 billion in guarantees (2 percent).59 Credits 36.4 44.4 46.6
15 percent (US$ 8.4 billion) of the total commitments Grants 8.1 7.5 6.9
was channeled through the three IDA17 special Guarantees 0.4 1.4 1.1
windows – the Regional Window, the CRW, and the
Total 44.9 53.3 54.6
SUF (see chapter 2, section 5 for further details). As a
share of new IDA commitments by replenishment, the
amount on grant terms decreased by 5 percent since Share of total IDA IDA15 IDA16 IDA17
IDA15 (table 3) as some IDA borrowers took credits Credits 81% 83% 85%
instead of grants, reflecting better conditions in their Grants 18% 14% 13%
financing capacity. This trend may be reversed after Guarantees 1% 3% 2%
IDA17, given the increasing levels of debt distress seen
among IDA’s clients (see box 23). Source: World Bank.
Box 23. Striking the Right Financing Mix to Promote Debt Sustainability
IDA17 saw a deterioration of debt ratios in IDA countries, threatening the progress achieved through
international efforts such as the Heavily-Indebted Poor Countries (HIPC) program and the Multilateral
Debt Relief Initiative (MDRI). Following 2006, debt relief recipients as a group initially accumulated
moderate levels of external public debt against a backdrop of sound macroeconomic policies and
buoyant commodity prices.1,2 More recently, increased client access to international capital and
domestic markets, especially by low-income countries in Africa, led to more rapid growth in low-income
countries’ debt levels; at times accompanied by a rising risk of debt distress. In particular, debt risk
ratings deteriorated between 2014 and 2017 in 15 countries (20 percent of IDA recipients) resulting
in a higher proportion of grants provided under the Performance-Based Allocation system in IDA17
compared to IDA16 (14.5 percent versus 13.8 percent).
IDA has consequently intensified its engagement with both borrowing countries and creditors around
debt sustainability. IDA’s work with client countries is focused on capacity building to help strengthen
debt management borrowing practices and better risk monitoring and assessment. Mechanisms
underpinning this discourse include IDA’s grant allocation framework, technical assistance in building debt
management capacity, support in monitoring external public debt developments, and implementation
of IDA’s Non-Concessional Borrowing Policy. 3 For countries experiencing debt problems, the annual
IDA allocation exercise continued to ensure that countries at moderate or high risk of debt distress
received IDA resources on grant terms (either 50 or 100 percent, respectively). IDA reached out to
other creditors to encourage them to expand their own use of concessional financing and to make them
aware of the joint WB-IMF Debt Sustainability Framework. It also created an online “lending to low-
income countries” tool as a new platform for direct communication with creditors.
IDA is paying special attention to debt risks of small island states and FCSs. These nations often have
only a limited capacity to step up spending during emergencies, including natural disasters or domestic
economic shocks. In these countries, IDA focused on supporting government efforts to better mobilize
domestic revenue and better allocate public spending. Recognizing that base risks associated with these
countries’ vulnerabilities have an out-sized impact on economic stability and debt, technical assistance
(e.g., under the Debt Management Facility) provided tailored support to both weak and strong performers.
58 This includes commitments financed through the SUF (US$3.8 billion) and transitional support to India (US$3.2 billion).
59 Total IDA commitments include commitments for all operations that are financed either fully or partially out of IDA resources. On the total
number of IDA’s new operations, this paper follows a new methodology that includes in the total count the following operations that are
financed either partially or fully out of IDA resources: (i) IBRD/IDA blend operations, (ii) supplemental development policy operations, and
(iii) additional financing of investment projects related to cost overruns and restructuring.
79
IDA17 Retrospective: Maximizing Development Impact
Box 23. Striking the Right Financing Mix to Promote Debt Sustainability
(continued)
IDA also conducted talks with governments about the debt burden impact of external borrowing,
using the Non-Concessional Borrowing Policy that was adapted during IDA17 to harmonize with the
IMF’s updated Debt Limits Policy. This approach recognized that non-concessional borrowing can
be an important complement to concessional financing for low-income countries; for example, in
meeting the demands of financing new or improved infrastructure. This new borrowing policy takes
into account country- and project-specific factors when reviewing a country’s non-concessional debt
profile, ensuring IDA balances its responsibility to safeguard donor finance with borrowers’ needs for
the right funding mix.5 The Non-Concessional Borrowing Policy Committee reviewed five countries
during IDA17,6 granting a single policy exception to Togo, based on the viability of its projects, the
lack of available concessional financing, and the minimal impact on its debt outlook. Furthermore, in
cooperation with country authorities, a non-concessional debt ceiling was set for Ethiopia at US$750
million from US$1 billion in FY15.7 The Bank also monitored ceilings for other countries set in the context
of IMF arrangements.
Figure B23.1. Evolution of Risk of Debt Distress Ratings, 2006-17
70
60 30 29 29 25 22 22 19 16 15 14 20 23
50
number of countries
40
30
20 19 16 20 20 19 23 27 26 32 28 26
20
10
11 13 16 16 19 20 19 18 20 15 13 12
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
C lend r Ye r
Low Moder te Hi h
1
Between 2006 and 2014, the number of countries with low ratings increased from 11 to 20, with medium risk ratings increased
from 20 to 26, and with high risk ratings declined from 30 to 15.
2
For countries that received debt relief under the Multilateral Debt Relief Initiative in 2009 and beyond, external public debt
ratios have generally risen less.
3
IDA. 2006. “IDA countries and non-concessional debt: dealing with the ‘free rider’ problem in IDA14 grant-recipient and post-
MDRI countries”, IDA/R2006-0137/1, June.
4
Debt relief initiatives include HIPC and MDRI, which aimed to enhance the borrowing space of IDA countries while safe-
guarding the benefits of debt relief and prospects for debt sustainability.
5
IDA gap and blend countries are not subject to the Non-Concessional Borrowing Policy. A country enters gap status once its
gross national income (GNI) per capita has been above the IDA operational cut off for more than two consecutive years, but it
is not yet IBRD creditworthy; a country enters blend status when it is declared IBRD creditworthy.
6
The countries reviewed were Ethiopia, Lao PDR, Maldives, Mozambique and Togo. In the cases of Ethiopia and Mozambique,
Non-Concessional Borrowing Policy Committee reviews were conducted on more than one occasion.
7
Ethiopia’s non-concessional borrowing volumes in FY15-FY17 were broadly within the ceilings for those years.
80
IDA17 Retrospective: Maximizing Development Impact
Figure 21. IDA Commitments to FCSs (US$ billion)
12
36 35
35 32
38
IDA Lendin to FCS (US$ billion)
10
28
8
6
4
2
$1.5 $2.4 $5.3 $6.1 $6.6 $7.7 $10.2
0
IDA11 (FY97-99) IDA12 (FY00-02) IDA13 (FY03-05) IDA14 (FY06-08) IDA15 (FY09-11) IDA16 (FY12-14) IDA17 (FY15-17)
Replenishment
Number of FCSs
Source: World Bank.
Of 78 countries60 eligible to receive IDA17 support,61 billion and funding to such countries in the East Asia
72 received financing. Five countries with credits in and Pacific Region more than doubled from US$900
non-accrual status62 and Dominica did not receive any million to US$2.1 billion, largely due to a significant
IDA commitments during the cycle. Of the 72, 56 IDA- increase in commitments to Myanmar.
only countries received a total of US$37 billion, or 67
percent of total IDA17 commitments, while 16 blend • Overall IDA17 financing to FCSs was about 32
countries received US$14 billion (26 percent of total percent higher than in IDA16,67 while commitments
commitments). In addition, India received transitional to small states increased by about 21 percent.68
support in the amount of US$3.2 billion (6 percent of Some small states got much more: commitments
total commitments) and two IBRD countries (Jordan to the Pacific Islands69 almost doubled compared
and Lebanon) received exceptional IDA financing in to IDA16, to US$500 million. Core IDA resources
the amount of US$100 million (0.4 percent) each63,64 allocated to FCSs were roughly 50 percent more
as a response to the refugee crisis during IDA17. than what those countries would have received
without the revisions to the allocation framework.
Support to FCSs as well as to small states65 was
expanded considerably. Consistent with the trend of • A further expansion of resources to FCSs
higher financing for FCSs over recent replenishments was constrained by IDA’s practice under the
(figure 21), IDA17 provided US$10.2 billion66 of core and Performance-Based Allocation system of netting out
non-core resources to FCSs, up from US$7.7 billion in impact of accessing support from the Multilateral
IDA16 and US$6.6 billion in IDA15. Support to FCSs Debt Relief Initiative (MDRI), which led to significant
in Africa rose from US$3.9 billion in IDA16 to US$6 deductions for several countries from their gross
60 This number excludes India, which graduated from IDA at the end of FY14 but received transitional support on an exceptional basis
through the IDA17 period and includes Syrian Arab Republic, reclassified from IBRD to IDA, effective September 29, 2016. For a complete
list of IDA-eligible countries in FY17, please refer to Annex 3.
61 Compared to 82 countries during IDA16. Five countries, Angola, Armenia, Bosnia and Herzegovina, Georgia, and India graduated at the
end of IDA16 period. One country, the Syrian Arab Republic, reclassified from IBRD to IDA in FY17. Three countries, Bolivia, Sri Lanka, and
Vietnam, graduated from IDA to IBRD at the end of IDA17.
62 Credits to five countries – Eritrea, Sudan, Somalia, Syrian Arab Republic, and Zimbabwe – were in non-accrual status at the end of FY17.
63 The remaining portion of total IDA17 commitments was accounted for regional organizations (US233 million of 0.4 percent) and the PEF
(US$50 million or 0.1 percent).
64 The sum of components of different financial indicators may not always equal the totals due to rounding.
65 FCSs are based on the Harmonized Lists of Fragile Situations in the corresponding fiscal years. Small states are countries with population
of 1.5 million or less.
66 Includes US$100 million to Lebanon to support sudden influx of Syrian refugees.
67 Increase reflects IDA17 actual commitments, from US$7.7 billion to US$10.1 billion (excluding FY17 US$100 million to Lebanon, which is an
IBRD country), facilitated by an increase in core allocations from US$4.8 billion in IDA16 to US$7.2 billion in IDA17.
68 From US$650 million in IDA16 to US$790 million in IDA17. Small states are countries with population of 1.5 million or less.
69 Includes commitments in Kiribati, Marshall Islands, Federated States of Micronesia, Samoa, Solomon Islands, Timor-Leste, Tonga, Tuvalu,
Vanuatu, as well as Pacific Islands regional organization through the Regional Program.
81
IDA17 Retrospective: Maximizing Development Impact
performance-based allocations.70 This is why MDRI Figure 22. Increasing Share of IDA Support
netting out was eventually eliminated in IDA18.
to FCSs via Credits (US$ billion)
IDA17 used grants (46 percent), and highly concessional
12
credits (50 percent) in its support to FCSs. Only 4
percent was provided on non-concessional terms
to Côte d’Ivoire under the SUF. This is a decrease 10
from IDA16 and IDA15, when grant financing to such
countries accounted for roughly 65 percent, due to
8
an increasing share of commitments destined toward
countries with higher income per capita (e.g., gap
countries, such as Côte d’Ivoire, which receive their 6
IDA financing on blend credit terms). The overall grant 1.7 3.1 5.6
element of IDA support to FCSs reached 74 percent,71
compared to 53 percent for overall IDA17 concessional 4
financing. The majority of the growth of resources
flowing towards these countries has been allocated on 4.8 4.6 4.7
2
credit terms (figure 22). This can be largely explained
by three developments: the re-engagement with
Myanmar, where a sizeable program was launched 0
IDA15 (FY09-11) IDA16 (FY12-14) IDA17 (FY15-17)
during IDA17; the shift by the Democratic Republic of
Replenishment
Congo to regular IDA terms as a result of an improved
debt rating (among other factors); and the access that IDA Gr nt IDA Credit*
was granted to Côte d’Ivoire for non-concessional
Source: World Bank.
terms under the SUF.
*IDA Credit comprises IDA credits, IDA guarantees, and IDA17 SUF.
Box 24. Trends in the Use of IDA Financial Products
IDA has three complementary financing instruments:
• Investment project financing (IPF), the instrument for long-term investments in developing
countries, provides financing for a wide range of activities aimed at creating the physical and social
infrastructure necessary to reduce poverty and create sustainable development. IDA has offered
IPFs since its inception.
• Development policy financing (DPF) aims to help borrowers achieve sustainable growth and
poverty reduction through a program of policy and institutional actions. Since beginning operations,
IDA has offered DPFs to its clients to strengthen public financial management, improve the
investment climate, address bottlenecks to improve service delivery, enhance social protection and
environmental sustainability, and diversify the economy.
• Program-for-Results financing (PforR) was introduced in 2012 to support the implementation of
government programs, using a government’s own program systems so that it helps achieve lasting
results by strengthening institutions and by building capacity.
70 Under the methodology, for countries eligible for debt cancellation under the MDRI initiative, the debt service due in a relevant fiscal
year is subtracted from the country’s gross Performance-Based Allocation (PBA; capped at 30 percent of the gross PBA) and then
redistributed to all IDA-only non-gap countries.
71 Excludes financing through SUF (US$445 million) and to Lebanon (US$100 million).
82
IDA17 Retrospective: Maximizing Development Impact
Box 24. Trends in the Use of IDA Financial Products (continued)
During IDA17, strong client demand more than doubled IDA approvals of PforRs from IDA16, accounting
for 10 percent of total IDA17 financing. Experience has shown that clients appreciate the focus on results
and the help in strengthening program systems and the capacity necessary to achieve good results. A
recent IEG evaluation, Program for Results: An Early Stage Assessment of the Process and Effects of a
New Lending Instrument, concluded that interest in PforR among regions appeared to be influenced by
a range of factors. In Africa, for example, there is the view that this is a good instrument for supporting
the regional agenda of building stronger institutions and delivering better services. In the Middle East and
North Africa and the East Asia and Pacific regions, the instrument is regarded as a good fit for efforts to
increase the emphasis on results and institutional capacity building. An example of this is the Ethiopia
Health MDG Support Operation where the PforR has strengthened institutional capacity in improving the
availability of data on service delivery through various demographic and health surveys, facility surveys,
and data quality assurance surveys that have been undertaken either as part of verification protocols
or as input to evaluations and design of strategies. Since P4forR was introduced, the largest recipient
under IDA17 has been Nigeria (receiving US$1.5 billion), followed by Vietnam (US$1.3 billion), and Ethiopia
(US$1.3 billion). During IDA17, 14 borrowers used PforR financing for their operations, of which the three-
largest recipients (Nigeria, Vietnam, and Ethiopia) received more than half of total PforR financing within
the IDA portfolio.
IPFs represented 78 percent of total financing during IDA17. Uptake picked up slightly in the Africa region
and fell in the South Asia region due to India’s graduation out of IDA and, partially, by a reduction in the
share for Pakistan. IDA17 extended IPFs to 71 countries, with the top five recipients (excluding regional
projects) being Bangladesh, Ethiopia, Vietnam, India, and Tanzania.
DPFs accounted for 12 percent of total financing in IDA17, similar to IDA16. In IDA17, DPFs were provided
to 41 countries (excluding regional projects), with the largest number of policy engagements in the Africa
region. DPFs continued to support reforms that strengthen public sector governance and the rule of law,
along with an increasing focus on enhancing finance and private sector development. In addition, DPF
projects have addressed different dimensions of fragility, vulnerability, and resilience – for example in
Sierra Leone, Chad, Tuvalu, and The Gambia – as well as environmental sustainability and climate change
(Laos and Vietnam).
Figure B24.1. IDA Commitments by Instruments
Commitments (US$ billion) (Sh re)
4% 10%
60 100
2.0 5.6
50 80
40
$ billion
60
30
24.9 37.6 45.0 42.6 40 76% 84% 84% 78%
20
10 20
7.7 7.2 6.3 6.4 24% 16% 12% 12%
0 0
IDA14 IDA15 IDA16 IDA17 IDA14 IDA15 IDA16 IDA17
DPF IPF PforR
Source: World Bank.
83
IDA17 Retrospective: Maximizing Development Impact
Figure 23. IDA17 Commitments by Major Sector
Public Administr tion 11%
A riculture, Fishin nd Forestr 12%
Industr , Tr de nd Services 6%
Fin nci l Sector 4% Educ tion 10%
Inform tion nd Communic tions Technolo ies 2%
He lth 8%
W ter, S nit tion nd W ste M n ement 10%
Soci l Protection 12%
Tr nsport tion 14% Ener nd Extr ctives 11%
Source: World Bank.
By sector, the largest share of IDA17 commitments Performance of IDA projects remained strong during
supported infrastructure and social sectors (figure 23). IDA17. As a share of total IDA commitments, IEG rated
While support to infrastructure in IDA17 made up 37 project outcomes as “moderately satisfactory” or
percent of total commitments compared to 43 percent above for more than 80 percent of closed operations
in IDA16, IDA support to social sectors increased to 30 across the overall portfolio (table 4), exceeding
percent of total commitments in IDA17 compared to 25 the performance standard of 75 percent. Self-
percent over the same period. Within infrastructure, ICT assessments of implementation progress for the IDA
commitments grew by 43 percent compared to IDA16, active portfolio reached about 83 percent, exceeding
while energy and extractives sector commitments the performance standard of 80 percent.
declined by 31 percent. Within social sectors, IDA17
commitments in health and social protection sectors IDA17 demonstrated a robust performance when
increased by 49 percent and 45 percent, respectively, viewed against the increased complexity of its
from IDA16. Support to agriculture, fishing, forestry, portfolio. In spite of the challenges related to
and public administration sectors remained stable at meaningfully and effectively broadening engagement
around 12 percent of total IDA17 commitments. Finally, in FCSs, the performance of IDA projects in these
IDA’s commitments in sectors that directly or indirectly countries also remained strong. As share of IDA
support private sector growth (infrastructure, industry, commitments, IEG’s rating of project outcomes in the
trade and services and finance) decreased to 47 percent FCS portfolio was rated “moderately satisfactory” or
of IDA17 commitments from 51 percent in IDA16. This above for 77.7 percent of projects, also exceeding
largely reflects lower commitments in the energy and the performance standard of 75 percent.73 However,
extractives sector; IDA17 support to industry, trade and as a result of greater share of IDA allocations toward
services and financial sectors climbed 34 percent and such countries, problem projects as a share of the IDA
54 percent, respectively, from IDA16. portfolio increased (table 5), hence IDA’s focus on
maintaining and increasing quality and performance
IDA’S ACTIVE PORTFOLIO of operations. For instance, the conflict in Yemen
stalled implementation of most projects, causing a
Over IDA17, the size of IDA’s active portfolio increased spike in “problem projects” in the portfolio in FY15 and
considerably. IDA’s total active portfolio under FY16. In FY17, management decided to close most of
implementation stood at about US$106 billion at the the Yemen portfolio, which brought the overall share
end of IDA17, compared to US$84.8 billion at the end down again.
of IDA16. The number of IDA projects totaled 918
compared to 851, reflecting the implementation of 445 Program growth over IDA17 has led to a younger active
new projects in IDA17 and the closing of 387 operations portfolio. With the expansion of the IDA program, the
approved in earlier replenishment periods.72 active portfolio has become younger, and as a result,
72 Source: World Bank. Reclassification of agreement type for 6 projects between IDA16 and IDA17 snapshot reports and errors in portfolio
status/count for 3 projects reflect the balance 10 projects between IDA periods.
73 Given the small number of IDA17 approved projects rated to date – four projects amounting to US$300 million – the performance rating is
preliminary.
84
IDA17 Retrospective: Maximizing Development Impact
O
Table 4. utcome Ratings of Closed Operations Based on IEG Evaluations
Exit Fiscal Year Approval Fiscal Year
IDA Period Moderately Satisfactory Number of Moderately Satisfactory Number of
or Better Outcomes at Exit Operations or Better Outcomes at Exit Operations
(# of operations basis) Rated (# of operations basis) Rated
IDA12 72% 403 73% 405
IDA13 73% 460 68% 474
IDA14 74% 430 74% 443
IDA15 70% 430 64% 237
IDA16 70% 476 64% 59
IDA17 75% 227 100% 4
Exit Fiscal Year Approval Fiscal Year
IDA Period Moderately Satisfactory Commitments Moderately Satisfactory Commitments
or Better Outcomes at Exit of Operations or Better Outcomes at Exit (US$b)
(commitments basis) Rated (US$b) (commitments basis)
IDA12 79% 18.8 80% 19.1
IDA13 76% 21.1 73% 27.0
IDA14 74% 22.8 81% 27.8
IDA15 77% 22.3 70% 15.2
IDA16 77% 29.8 72% 3.1
IDA17 82% 15.1 100% 0.3
Source: World Bank, based on World Bank data (as of December 7, 2017) and IEG ratings.
Table 5. Problem Projects in Investment Operations as Share of Portfolio
IDA15 IDA15 IDA16 IDA16 IDA17 IDA17
Avg. Avg. Avg.
% FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Problem
Projects
FCS 18.0 17.8 19.6 18.5 17.0 17.4 17.4 17.3 22.3 21.2 19.2 20.9
NON- 13.5 13.0 11.9 12.8 13.0 15.7 18.1 15.5 16.4 17.8 17.7 17.3
FCS
Total 14.7 14.3 13.8 14.3 13.9 16.1 17.9 15.9 17.7 18.6 18.1 18.1
Source: World Bank data (as of December 21, 2017).
Note: Regional operations are not included.
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IDA17 Retrospective: Maximizing Development Impact
the disbursement ratio for IDA investment projects typically accelerates as the portfolio matures but the
slightly declined. The disbursement ratio74 decreased IDA portfolio became younger during IDA17, with
by 2 percentage points to 20.9 percent (table 6), the share of operations active for less than 2 years
moving it slightly below the IDA17 performance increasing by 10 percentage points to over 50 percent
standard range of 23-24 percent. In support to FCSs, between FY13 and FY16. Portfolio composition also
the disbursement ratio of 23.9 percent in the final year has an impact on the disbursement ratio. Infrastructure
of FY17 was within the IDA17 performance standard, loans generally disburse more slowly and in large
although it decreased compared to the IDA16 average ‘tranches’ due to relatively large contracts and lengthy
of 26.9 percent due to the scaling up of IDA17 resources procurement processes. In years where IDA’s Board
to these nations, with loans naturally disbursing approved a comparatively larger number of new
with a time lag. Typically, funds under investment infrastructure loans, the disbursement ratio usually
projects disburse at a slower pace during the initial declines, and picks up strongly 3-4 years later.
years and accelerate as relevant systems emerge and
procurement is completed. The disbursement ratio
Table 6. Disbursement Ratio of IDA Investment Projects75
IDA15 IDA15 IDA16 IDA16 IDA17 IDA17
Avg Avg Avg
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
FCS 25.8 27.4 23.5 25.5 24.8 26.6 29.2 26.9 25 18.8 23.9 22.6
Non-FCS 22.3 24.4 21.2 22.6 21.6 22.4 22.7 22.2 22.4 19.4 20.1 20.7
All IDA 22.8 24.8 21.6 23.1 22.0 22.9 23.6 22.8 22.7 19.3 20.6 20.9
Source: World Bank data (as of January 9, 2018).
74 The ratio of disbursements during the fiscal year to the undisbursed balance at the beginning of the fiscal year.
75 Figures also reported in IDA’s Results Measurement System are rounded (FY15, FY16 and FY17).
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IDA17 Retrospective: Maximizing Development Impact
SECTION 5: IDA17 WINDOWS
To better address regional development questions,
strengthen crisis response, and scale up financing
of transformational operations, IDA17 expanded its
At the end of IDA17, the three special
suite of financing windows. Just over 15 percent of
the IDA17 commitments was channeled through three
windows—the Regional Window, the
special windows that target these priorities. Two of CRW, and the SUF—delivered US$8.4
these windows—the CRW and the Regional Window billion or 16 percent of total IDA17
—existed prior to IDA17. IDA17 introduced one new commitments.
window—the SUF—to help clients take advantage
of unique opportunities to achieve transformational
impact. Client countries that accessed the windows At the end of IDA17, the three special windows—
often used the additional resources to complement the Regional Window, the CRW, and the SUF—
their national “core” allocations accessed through delivered US$8.4 billion or 16 percent of total IDA17
the Performance-Based Allocation system. Thus, commitments (figure 24). Additionally, US$3.2 billion
these projects are quintessential examples where (6 percent) was committed to provide exceptional
global and local priorities meet. This section discusses transitional support for India. The share of resources
the composition of the IDA17 special windows, and committed through windows increased as compared
distills some key lessons from experiences since these to the previous replenishments.
windows were first introduced.
At the outset of IDA17, US$2.9 billion was allocated Figure 24. Core Funding, Windows and
for the Regional Program76 and US$840 million for
the CRW.77 At the time of the Mid-Term Review in
Transitional Support Commitments
100% 8% 7% 6%
November 2015, it was recognized that resources
for specialty financing windows were under severe
16%
pressure—most notably, for the CRW and Regional 80%
Program—and there was growing demand from
IDA clients to complement concessional funding
with non-concessional resources to help finance 60%
large infrastructure spending on projects with
transformational potential or affordable terms. 92% 93% 78%
40%
At mid-cycle, the IDA17 envelope was replenished
with US$5 billion to respond to strong client demand
20%
and financial needs. Resources were used to top up
the CRW by US$900 million in response to strong
demand; to establish a new SUF with US$3.9 billion; 0%
and to provide exceptional support of US$200 million FY15 FY16 FY17
to the sudden refugee influx in Lebanon and Jordan.78 Core Concession l Non Core Set Asides
Tr nsition l Support
Source: World Bank.
76 Includes US$50 million in grant to the Pandemic Emergency Financing facility.
77 These US dollar values represent the SDR allocations converted with an exchange rate of US$1.4:SDR1, used during the IDA18
Replenishment discussions. At the outset of IDA17, the SDR exchange rate was at about US$1.52:SDR1, implying significantly higher US
dollar-denominated allocations (of US$3.2 billion for the Regional Program and US$900 million for the CRW).
78 For more details see Board paper, Enhancing IDA’s Financial Support in IDA17, March 2016.
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IDA17 Retrospective: Maximizing Development Impact
Table 7. IDA17 Windows' Resources Combined with National Allocations
and Counterpart Funding
CRW Regional Window SUF
Total IDA CRW Share Total IDA Regional Share of Total IDA IDA17 Share
(CRW+ of CRW (Regional+ Window Regional (SUF + SUF of SUF
counterpart to counterpart Window counterpart to
funding) (US$ Region funding) (US$ to funding) (US$ Region*
(US$ million) (US$ million) Region (US$ million) million)
million) million)
AFR Total 1,432 1,067 61% 3,406 2,126 75% 3,226 2,514 66%
Of which 678 553 896 504 445 445
FCS
SAR Total 355 300 17% 769 369 13% 1,440 895 24%
Of which - - 128 42 - -
FCS
EAP Total 269 160 9% 417 238 8% 366 213 6%
Of which 219 110 260 110 - -
FCS
ECA Total - - 0% 83 53 2% 226 100 3%
Of which - - - - - -
FCS
LAC Total 100 100 6% 70 32 1% 127 80 2%
Of which 100 100 50 20 - -
FCS
MENA Total 200 125 7% 20 18 1% - - 0%
Of which 200 125 - - - -
FCS
Total All 2,356 1,752 100% 4,764 2,836 100% 5,384 3,801 100%
Regions
total
Of which 1,197 888 1,334 676 445 445
FCS
* Percentages do not total 100 percent due to rounding.
Jointly, the IDA17 windows helped finance a total
of 135 projects amounting to US$12.5 billion.
About 20 percent of total IDA17 projects included Further consideration is needed on maintaining an
financing from one of the three windows— appropriate balance between the responsiveness and
complementing and leveraging IDA core allocations, flexibility offered by window resources and the IDA
as well as counterpart funding (table 7). Countries principle of non-earmarked core country funding.
were able to access significantly larger overall support Windows have grown as a share of total IDA, from 8
envelopes given that the funds allocated through these to 20 percent between IDA15 and IDA17, respectively.
windows were linked to national country allocations. While IDA17 windows enabled IDA to be responsive
The SUF accounted for the largest amount, US$5.4 to evolving client demands and urgent needs, the
billion, through 31 operations funded by US$3.8 billion trade-offs associated with their expansion in number
of its own resources. The Regional Window provided and size need to be reviewed against the core IDA
US$4.7 billion, through 67 IDA projects,79 using US$2.8 principle of non-earmarked financing, which provides
billion of its resources. The CRW financed US$2.4 predicable, counter-cyclical funding in alignment with
billion, through 37 operations, using US$1.8 billion of its client priorities.
resources. Jointly, the IDA17 windows helped finance a
total of 135 projects amounting to US$12.5 billion.
79 In addition, US$50 million in grant was provided to the Pandemic Emergency Financing facility under the Regional Window.
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IDA17 Retrospective: Maximizing Development Impact
Figure 25. Crisis Response Window by Type of From IDA16 to IDA17, the window doubled in size—
Disasters since IDA16 from US$900 million to US$1.8 billion—with the
allocated resources fully utilized, evidence of a strong
demand for crisis response resources by IDA countries.
Economic shock 5.4%
Nineteen countries benefitted from CRW financing
E rthqu ke 29.3%
He lth (Ebol & during IDA17, bringing the total number of countries
Choler ) 15.2% receiving assistance since IDA16 from this source to
25. The majority of recipients were IDA-only countries,
C clone 3.1%
Hurric ne 3.6% 12 were FCSs, and six were small states.80
During IDA17, for the first time, CRW funds were
Drou ht 29%
Flood 14.4% provided to respond to economic crisis (a commodity
price shock) and a public health emergency (Ebola), in
addition to natural disasters. Overall, the largest share of
Source: World Bank.
support under this facility continues to go toward IDA
countries responding to natural disasters (figure 25).
CRISIS RESPONSE WINDOW
During IDA17, the CRW responded to 10 natural disasters, a
The CRW was introduced at the IDA15 Mid-Term public health emergency and an economic crisis, affecting
Review in November 2009 to provide IDA countries in total 24 countries. 26 CRW operations responded to
with timely access to additional resources—as part ten natural disasters in 15 countries (table 8); five CRW
of a concerted international response—to crises and operations responded to public health emergencies—all
disasters. This window forms part of a range of World related to Ebola—in three countries (Guinea, Liberia and
Bank mechanisms to provide expanded, systematic, Sierra Leone); and six CRW operations responded to the
and coordinated support across a range of crises, commodity price shock affecting four countries (Chad,
spanning preparedness, response, and reconstruction. Guinea, Liberia and Sierra Leone).
After the initial IDA15 pilot, the CRW was officially
established in IDA16 and continued in IDA17.
The Many Faces of IDA: Liberia, Sierra Leone, and Guinea
The Ebola epidemic in 2015 resulted in 11,300 deaths and the loss of US$2.8 billion in gross domestic
product across Guinea, Liberia, and Sierra Leone. World Bank allocations amounted to US$1.17 billion –
including US$420 million from the Crisis Response Window through the Ebola Emergency Response
Project to Liberia, Guinea, and Sierra Leone—for the deployment of additional health workers,
strengthened community-based care and triage, and better diagnostic capacities.
Click here for more details on the Ebola
Emergency Response Project.
Photo: Lucy Barh, a midwife at Redemption Hospital in
Monrovia, Liberia.
80 Based on country status at the time of CRW commitment.
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IDA17 Retrospective: Maximizing Development Impact
Figure 26. Crisis Response Window Allocations by Region Since IDA16
1,600
35%
1,400
1,200
CRW lloc tion, US$ million
1,334 26%
1,000
800
600
644
400
200 3% 3%
300 195
188 CRW lloc tion
1% 2% 100 s % of PBA
0
AFR LCR SAR EAP MNA ECA
Source: World Bank.
Figure 27. Sector Distribution Under the Crisis Response Window Since IDA16
Soci l Protection 31% | $1,233 million
Tr nsport tion 14% | $553 million
He lth 12% | $473 million
W ter/S nit/W ste 12% | $466 million
A riculture 8% | $314 million
Public Admin 8% | $311 million
Industr & Tr de/Ser 6% | $237 million
Ener & Extr ctives 3% | $122 million
Educ tion 3% | $114 million
Fin nci l Sector 3% | $110 million
Info & Communic tion 0.02% | $0.6 million
0 5 10 15 20 25 30 35
Source: World Bank.
There are several key trends seen in the portfolio • Nearly 60 percent of CRW commitments have been
composition since IDA16: grants, reflecting mainly the recipient countries’
underlying debt sustainability analyses.
• Africa was the largest recipient, although the Latin • CRW commitments have been almost evenly
American and Caribbean region was greater in distributed between new and additional finance
terms of proportion to total IDA lending (figure 26). operations.
• One-third of CRW resources were channeled Projects funded through the CRW continued to
through social protection projects, followed by the perform well in IDA17, responding to crises swiftly and
transportation and health sectors (figure 27). effectively. Most closed projects (80 percent) were
rated “satisfactory” based on the overall outcome
• The CRW provided 90 percent of its resources ratings by IEG and by the Bank’s Implementation
as Investment Policy Financing (IPF), followed by Completion and Results Reports. In terms of speed,
Development Policy Financing (DPF; 8.5 percent) CRW projects started disbursing faster than other
and Programs for Results (PforR; 1.5 percent). IDA projects; on average, the time between approval
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IDA17 Retrospective: Maximizing Development Impact
to first disbursement is 5.2 months for CRW projects, Figure 28. Post-disaster Financing
and 8.6 months for all other IDA projects. The
speed of disbursement reflects the type of activities
Commitments and Pledges Since IDA16
funded by the CRW, which is short-term versus long-
term recovery. Emergency response operations, as
Addition l WBG support 25%
expected, disburse at exceptional speed; in the case Government 5%
of the Ebola response, financing was approved and
disbursed through the CRW in just nine days.
CRW financing81 since IDA16 represented nearly 20
percent82 of post-disaster support to crisis-affected
countries (figure 28). WBG financing, including this
CRW 19% Other donors 51%
window, represented an even larger share (nearly half)
of post-disaster financing. This also includes financing
from WBG-managed crisis-related trust funds, of
which CRW recipients received US$121 million. Source: World Bank.
The Many Faces of IDA: Northeast Nigeria, Somalia,
South Sudan and Yemen
In mid-2017, the UN estimated that 20 million people were on the “tipping point” of famine in Northeast
Nigeria, Somalia, South Sudan, and Yemen—while there was also serious risk of famine in Ethiopia and
Kenya.
IDA responded quickly to intensifying food insecurity in Africa and Yemen with a US$1.8-billion
package of IDA support, including US$360 million from the Crisis Response Window.
Drought response is an example of a multidimensional crisis where natural disasters, health outbreaks,
and conflicts have a cumulative impact of devastating proportions. IDA complemented the primary
mandate of the UN for providing emergency relief with IDA’s efforts aimed at supporting safety nets
for affected groups and restoring basic physical assets destroyed by the disaster.
81 Based on the data collected at the time of the CRW Board date.
82 As a share of commitments and pledges made by the affected country governments and the donor community.
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IDA17 Retrospective: Maximizing Development Impact
KEY LESSONS FROM THE CRW support combined short-term crisis response
CRISIS RESPONSE WINDOW and longer-term resilience building through an
increased emphasis on preparedness and prevention.
The CRW not only addressed the issues of timeliness For example, the recent drought and famine response
and additionality but it provided IDA the added package went beyond providing emergency relief by
flexibility and adaptability to respond to crises and also embedding measures to build stronger and more
emergencies in a systematic and effective manner. resilient food systems.
During IDA17, increasing varieties of disasters and the
window’s adaptable and flexible nature allowed IDA Going forward, the need to respond to recurrent,
to expand focus beyond natural disasters to economic predictable, and slow-moving disasters highlights
crises and public health emergencies. The CRW the importance of an increased emphasis on disaster
provided response to countries hit by crisis, often with preparedness, mitigation and prevention. Countries
far-reaching human and economic impact. The natural that received support from the CRW after severe and
disasters impacted the countries hit on average by recurrent crises have taken steps toward building
13 percent of their GDP and affected on average 22 resilience and preparedness through an increased
percent of their population. The economic and human take-up of Disaster Risk Management operations
impact of natural disasters varied depending on the and contingent mechanisms. Introduction of the
size of the disasters as well as the size of the country’s Catastrophe Deferred Drawdown Option for IDA
economy, reaching as high as 64 percent of GDP and clients in IDA1883 and the innovative Pandemic
67 percent of the population in the case of Vanuatu Emergency Facility will also fortify preparedness and
(see table 8). prevention support (see box 25).
Table 8. Countries that Received Financing Through the Crisis Response Window after
Natural Disasters During IDA17: Human and Economic Impact
Country Disaster Year Total Affected/ Total Damage/ Total damage CRW Funding as a
type Total Population GDP (US$ million) share of total damage
Vanuatu Cyclone 2015 67% 64.1% 447.1 11%
Lesotho Drought 2016 44.4% 2.5% 56 36%
Tuvalu Cyclone 2015 41.9% 27% 10.5 29%
Malawi Drought 2015 38.1% 5.7% 390 5%
Somalia Drought 2015 33.8% 10.6% 660 8%
South Sudan Drought 2016 29.4% n/a n/a n/a
Nepal Earthquake 2015 19.7% 24.3% 7,200 3%
Haiti Hurricane 2016 19.4% 24.2% 2,000 5%
Ethiopia Drought 2015 10.2% 2.2% 1,400 7%
Solomon Islands Flood 2014 9% 9.2% 107.8 9%
Mozambique Drought 2016 8% 1.8% 204 15%
Madagascar Drought 2016 4.6% 1.1% 110 18%
Malawi Flood 2015 3.6% 6.1% 390 21%
Myanmar Flood 2015 3.1% 0.2% 119 84%
Kenya Drought 2016 2.6% 0.4% 254 14%
Sources: World Bank based on Emergency Events Database available at http://emdat.be/, Université catholique de Louvain (UCL) and Board
Documents for Crisis Response Window projects (see annex in companion paper “IDA17 Regional Perspectives”).
Note: Figures for total damage (US$ million) for Lesotho, Mozambique and Madagascar are unavailable. The figures in this table are UN estimates
based on country’s post-disaster needs (humanitarian/recovery) as a proxy for total damage.
83 To promote countries' resilience to disasters and to expand the range of IDA's crisis instruments, this new option is a contingent credit
line that provides immediate liquidity to countries in the aftermath of a catastrophe and serves as early financing while funds from other
sources, such as bilateral aid or reconstruction loans, are being mobilized.
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IDA17 Retrospective: Maximizing Development Impact
Box 25. Bolstering Crisis Response for IDA Countries
Additional IDA crisis response mechanisms. Some CRW recipients also benefited from other contingent
financing mechanisms that are part of IDA’s toolbox and helped them quickly access project funds for
emergency response and early recovery. Funds under the Contingent Emergency Response Component
or the Immediate Response Mechanism have been triggered by six countries that also drew from the
CRW: Lesotho (drought), Madagascar (drought), Mozambique (drought), Haiti (hurricane), Dominica
(hurricane) and Myanmar (floods).
Insurance. All five CRW recipient Pacific Islands, all four CRW recipient Caribbean Islands, and two
CRW recipient African countries have had coverage under the Pacific Catastrophe Risk Financing and
Insurance Initiative, the Caribbean Catastrophe Risk Insurance Initiative Facility, and the African Risk
Capacity facility, respectively. Five out of these 11 countries received payouts averaging US$11 million.
The insurance payouts represented, on average, 2 percent of damages, while CRW resources provided
in response to the same disaster accounted for 13 percent of damages.
The Pandemic Emergency Financing Facility. This Facility was created following the West African
Ebola outbreak of 2014. The WBG, responding to requests from the G20 and G7, developed the Facility
with external public and private sector partners. Given strong demand from IDA countries and the high
risk of disease outbreaks, the Pandemic Emergency Financing Facility received a special allocation
of US$50 million from the IDA17 Regional Program in May 2017. Approved by the Board in May 2016,
the new Facility became operational in July 2017. It fills a critical gap in the global health financing
architecture for IDA countries by providing early and rapid surge financing to respond to pandemic
threats, thereby preventing their escalation, saving lives, and containing economic losses. The facility has
both insurance and cash windows. Coverage under the insurance window is funded with proceeds from
pandemic bonds issued by IBRD and insurance contracts. Premiums are funded by donor contributions,
including the IDA financing for the Facility. The Pandemic Emergency Financing Facility helps to raise
awareness among IDA countries on the need for better pandemic preparedness and response planning
and in incentivizing countries to act on these areas.
REGIONAL WINDOW (figure 29), of which US$2.8 billion came out of the
regional IDA program while US$1.9 billion was funded
The Regional Window, launched as a pilot at the start from national IDA allocations. Total grants (US$1
of IDA13 in 2003, has grown substantially in supporting billion) accounted for 21 percent of commitments, and
regional integration amongst IDA countries. It has credits (US$3.8 billion) accounted for 79 percent of
facilitated collective action, particularly by taking commitments.
advantage of economies of scale in transformational
infrastructure projects, and by opening access to Responding to need and in alignment with the African
regional and international markets (especially in Union’s New Partnership for Africa’s Development, the
landlocked countries). It has enabled the development Africa region has been a primary beneficiary, receiving
of regional public goods in areas as diverse as disease US$3.4 billion (75 percent) of Regional Program
prevention and climate change adaptation and commitments in IDA17. Commitments to other regions
mitigation. stood at: US$769 million for South Asia, US$417 million
for East Asia and the Pacific; US$83 million for Europe
During IDA17, all regions fully utilized their IDA and Central Asia; US$70 million for Latin America and
Regional Window allocations. Commitments to IDA the Caribbean; and US$20 million for Middle East and
Regional Program projects amounted to US$4.8 billion North Africa.
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IDA17 Retrospective: Maximizing Development Impact
Figure 29. IDA Regional Program The Africa region has received
US$3.4 billion (75 percent) of
Commitments (US$ billion) Regional Program commitments.
5
• In eastern Africa, the Lake Victoria Program
supports the revitalization of intermodal transport
on and around Lake Victoria in a sustainable
4 manner that will help to reduce transport costs and
improve access, both for the communities living
around the lake, and for the landlocked countries
3 of the region. The first phase of the program in
Rwanda was delivered during IDA17 and it is already
supporting improvements along the regional road
2 corridor and border crossings to provide efficient
and safe movement of goods and people.
• The Development Response to Displacement
1
Impacts Project in the Horn of Africa helped mitigate
the impact of forced displacement on refugee-
0.435 1.9 2.5 4.5 4.8 hosting communities in that region, which currently
0 hosts an estimated 9.5 million displaced persons,
IDA13 IDA14 IDA15 IDA16 IDA17
including more than 6.5 million internally displaced
Source: World Bank. persons and about 3 million refugees. This work
Note: Figures include allocations from both regional and national envelopes. has laid the foundation for the refugee sub-window
in IDA18.
The Regional Window supports an increasingly broad • In East Asia and the Pacific, IDA scaled up and
range of sectors. While infrastructure still accounted enhanced regional approaches to the small islands
for the largest share of commitments, demand for of the Pacific in aviation, fishery, ICT connectivity,
regional solutions across other sectors, such as health, and other common challenges.
education, agriculture, climate and environment
now represent more than half of the IDA17 regional KEY LESSONS FROM REGIONAL WINDOW
portfolio. In infrastructure, there has been a growth EXPERIENCES SINCE INCEPTION IN 2003
in ICT investments alongside those in transport and
energy. There has also been a growing demand for The regional window has been adjusting its policy
greater regional solutions in policy harmonization framework to meet the diverse development
and the strengthening of institutions and systems challenges facing IDA clients. Access eligibility criteria
to maximize capacity. Countries continue to seek now take into account the needs of FCSs, small islands,
collaboration in building resilience against shocks and the geographic location of certain countries with no
climate change. IDA neighbors, and activities in one single country but
with significant impact on the region. The IDA grant
The Regional Window has supported transformational for regional organizations was introduced in IDA15
results: to help build their capacity in supporting the goal
of regional integration and collaboration. The only
• Through the Southern Africa Trade and Transport lending instrument used in the regional integration
Facilitation Program, 731km out of 928km of program is the IPF. Some of the next generation
roads in the Dar Corridor in Tanzania (equal to 87 challenges in regional integration including the need
percent) are now in good condition, a 10 percent for policy and regulatory reforms and leveraging
increase from 2012. A second phase of this project private investments may require use of other WB
will expand improvements into the Malawi side of instruments like development policy financing, PforRs
the Corridor, which will provide better regional and guarantees that were originally designed for use
connectivity for landlocked Malawi to the port of in individual countries. To support a more ambitious
Dar es Salaam. agenda on regional integration through more holistic
94
IDA17 Retrospective: Maximizing Development Impact
The Many Faces of IDA: Comoros
The coastal populations of the South West Indian Ocean region struggle to overcome weak economic
activity, poverty, and hunger, and exposure to climate change impacts. Fish stocks in the region are
increasingly facing risks of overexploitation or depletion from overfishing by industrial vessels and
artisanal fishers.
The South West Indian Ocean Fisheries Governance and Shared Growth Project will initiate regional
discussions and cooperation to develop a regional fisheries management program focusing on reducing
pressure on the fishing ecosystems and helping countries address shared challenges. Safeguarding
fish resource productivity and developing the value chain for fish production will expand the fishers’
livelihoods as a step towards reducing poverty.
Financed by US$75.5 million from IDA and US$15.5 million in co-financing trust funds form the Global
Environment Facility, the project supported regional coordination and cooperation to improve the
management and sustainable development of fisheries in the South West Indian Ocean and benefited
countries in the South West Indian Ocean Fisheries Commission: Comoros, Madagascar, Mauritius,
Seychelles, Somalia, Kenya, Tanzania, Mozambique, South Africa, Yemen, and Maldives.
Click here for more on the South West
Indian Ocean Fisheries Governance and
Shared Growth Project.
Photo: Nasbata Ahamada working at a fish drying facility in
Comoros.
approaches, there is interest in the Africa region to is increased demand for cross-sector interventions
broaden the use of the IDA regional window including with knowledge exchange, research, technology and
through supporting policy-oriented reforms and skills building to support the development of people,
interventions to complement physical investments, institutions and systems. The Africa region which has
stemming from the view that regional integration the greatest need to strengthen regional integration
goes beyond physical infrastructure and increasingly and link countries to the global economy is preparing
embraces policies and institutions. a new strategy, “Supporting Africa’s Transformation:
Regional Integration Strategy 2017-2023”, which will
Regional solutions to development challenges guide the next generation of the Bank’s engagement
increasingly span multiple sectors. On the one hand, in regional integration. The East Asia and Latin
this makes IDA’s support to regional initiatives more America regions have used the Regional Window to
sophisticated, addressing the development challenges support small islands through economies of scale in
in a more holistic way. On the other, it increases the their respective regions.
operational complexity of regional projects and
leads to higher transaction costs and implementation Regional organizations have been important in leading
risks in coordinating multiple and often sequential and supporting project delivery, and in assuring the
interventions, involving multiple countries and sectors. sustainability of investments in the longer term. Over
For example, in infrastructure, there has been a growth the years, IDA has worked with and supported regional
in ICT investments alongside investments in transport inter-governmental organizations such as the East
and energy. In health, education and agriculture, there African Community, and the West African Economic
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IDA17 Retrospective: Maximizing Development Impact
and Monetary Union. It has also backed regional IDA17 SCALE-UP FACILITY
technical organizations such as the West Africa
Health Organization, and the Pacific Aviation Safety The introduction and innovation of the SUF provided an
Office. The political and technical leadership of these additional US$3.9 billion for transformational projects
organizations in the regional projects supported by in IDA17. Midway through IDA17, it became clear
IDA has been essential to ensure regional ownership that constrained access to multilateral development
of these projects and to support coordinated bank funding presented IDA clients trying to finance
implementation among participating member states. large infrastructure gaps with difficult choices, such
IDA’s partnership with regional organizations, including as drawing down limited concessional resources or
through IDA’s grants to regional organizations, has seeking more expensive commercial borrowing. In
also supported their capacity building to advance response, the Board approved the establishment of the
regional integration agendas on their own. IDA17 SUF to enhance IDA’s support on favorable, non-
concessional terms (i.e., similar to IBRD) for high-quality,
transformational operations with strong development
impact.84 This innovation provided additional resources
Demand for regional projects
to address immediate financing pressures without
has grown significantly. the need for additional donor contributions, while
maintaining a robust coverage of IDA’s liquidity needs
and preserving IDA’s financial sustainability.
IDA clients strongly supported the Regional Window
and have demanded an expansion. Demand for The SUF complemented core IDA resources. It
regional projects has grown significantly, while portfolio supported 31 operations in 15 different countries
performance reflects implementation challenges across all regions. Its resources were primarily utilized
inherent to regional approaches. IDA’s regional project by countries at low risk of debt distress to support
portfolio went from the initial US$200 million in FY05 to investments in areas consistent with expected demand
US$4.76 billion fully committed under IDA17. Regional for non-concessional resources (i.e., with a focus on
projects tend to perform slightly below the average of energy and transport; figure 30). These resources
IDA national projects because of the multiple countries allowed IDA to finance operations significantly
and implementation complexities involved–the larger than countries’ core IDA envelopes (e.g., in
disbursement ratio tends to be a bit lower and problem Côte d’Ivoire and Zambia; figure 31), and to combine
projects risks higher. In the Africa region for example, regular IDA with SUF support to expand engagements
the disbursement ratio for the regional portfolio is 15.5 for greater impact (e.g., in Tajikistan, Tanzania, and
percent compared to the Africa region average of 21.5 Nicaragua).85
percent. Regional projects tend to be more complex,
carrying higher project preparation costs, needing more The IDA17 SUF expanded IDA’s financial toolbox.
support for capacity building of regional and national For those countries facing more expensive terms
institutions, and requiring longer time in procurement on capital markets, SUF resources helped improve
and disbursement due to the number of counterparties their public debt profiles (e.g., in Pakistan, Sri Lanka,
involved. They also involve working with internal and Zambia) although likely at the margin, given the
systems and processes that are geared toward national relatively limited volume of SUF resources. In addition,
projects. In addition, the risk of fragmentation of the the Facility enabled IDA and client countries to gain
regional portfolio will need continued management experience with a non-concessional IDA product.
while balancing the size of individual projects. Efforts
are ongoing to simplify regional projects and facilitate
project implementation and supervision.
84 SUF resources were made available only to IDA-eligible countries at either low or moderate risk of debt distress.
85 In case a country’s regular IDA financing exceeds 100 percent of its FY17 core IDA allocation (i.e., Tajikistan), the country will have
benefited from either an intra- or inter-regional reallocation of resources from another country (or countries).
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IDA17 Retrospective: Maximizing Development Impact
The Many Faces of IDA: Côte d’Ivoire
Given the demands for financing from client countries, the Scale-up Facility sought to grow projects
that had a transformational development impact. Access to electricity in suburban and rural areas can
have a significant impact on job and income generation. The Facility provided a US$325 million credit
to improve the efficiency and reliability of electricity supply in Côte d’Ivoire, with the aim of increasing
access to electricity.
The Electricity Transmission and Access Project will finance priority investments to upgrade and
extend the national transmission and distribution network and strengthen the reliability of power
supply in the country. It will also accelerate access to electricity for the population in 10 regional capital
cities and rural areas in South Western regions of Côte d’Ivoire. This will be achieved by supporting the
government’s “Electricity for All” program, which is expected to bring access to electricity to around
one million low-income households over 5 years by financing the connection fee through a revolving
fund. This mechanism will reduce the up-front connection cost 100-fold, from about US$250 to just
US$2 per household.
Click here for more on the Electricity
Transmission and Access Project.
Photo: Crew leader at a power grid in Anono, a low-income
neighborhood of Cote d’Ivoire’s capital, Abidjan.
Figure 30. Concessional IDA Commitments vs IDA17 Scale-up Facility Commitments, Sector
Breakdown (as % of Respective Totals)
40
35
30
25
20
15
10
5
0
Tr nsport tion W ter, S nit tion Ener nd Fin nci l Sector Soci l Sectors Other*
nd W ste Extr ctives
IDA17 SUF commitments Concession l FY17 IDA commitments
Source: World Bank.
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IDA17 Retrospective: Maximizing Development Impact
EMERGING LESSONS FROM THE SCALE-UP advance IDA priorities. In addition, the rising risk of
FACILITY SINCE 201686 debt distress in IDA countries88 reinforces the notion
that debt sustainability considerations should remain
Initial experience with prioritization criteria, debt paramount in implementation of this Facility. Since
sustainability, monitoring and reporting have led to Scale-up Facility financing is provided on near-IBRD
adjustments in the SUF framework for IDA18. Experience terms, it is generally treated the same way as other
from implementation of the Facility under IDA17 shows the Bank's non-concessional lending for the purposes
that there is no single policy prescription to catalyze of non-concessional borrowing policy. Finally, IDA has
transformational change.87 Therefore, the IDA18 Scale- developed internal systems to improve monitoring and
Up Facility introduced additional prioritization criteria reporting of the Facility's pipeline, which are already
in the form of “soft filters” to help improve the targeting allowing operational teams and Bank management to
of Facility resources to support interventions that easily capture and track planned operations.
SECTION 6: IDA17 FINANCING FRAMEWORK
IDA17 introduced important changes to IDA’s financing IDA17: A RECORD ACHIEVEMENT
framework. Among these, the introduction of debt
financing at scale for the first time in IDA’s history A global coalition of donors—comprising IDA’s
marked a notable milestone in the way IDA generates traditional partners as well as emerging development
and provides concessional finance to its clients. These partners, countries that graduated out of IDA, and IDA
changes became the building blocks for much more clients—concluded a then-record financing framework
far-reaching innovations currently underway, such as for IDA17 in December 2013. Based on the pledges
IDA’s access to capital markets based on its triple-A made at the final replenishment meeting, a commitment
rating during IDA18 and beyond. IDA shareholders authority of US$52.1 billion89 was made available to the
that agreed the IDA17 financing package during world’s poorest and most fragile countries. The IDA17
consultations in 2014 anticipated and pioneered replenishment became effective on November 5, 2014.
the leap in scaling up development finance that was
subsequently championed by the Addis Ababa Action IDA17 has delivered the largest program of support to
Agenda. This section discusses the financial innovations date—total commitments amounted to US$55 billion.90
introduced in previous replenishments, and the new This program was supported by a revised IDA17
IDA17 innovations, that jointly boosted money available financing framework including US$26.3 billion in donor
to clients by US$15 billion —and ultimately became contributions, US$4.9 billion in Concessional Partner
the building block and essential experience for a new Loans (CPLs)91,92, and a further US$5 billion midway
hybrid financing framework after IDA17. through IDA1793 through more efficient use of IDA’s
liquidity.
86 For full details on early experience from the IDA17 Scale-up Facility, see IDA17 Scale-up Facility (SUF) Retrospective, January 4, 2018.
87 A conclusion consistent with IEG findings that transformational projects vary in form, size and the development challenges they address
and are difficult to identify on an ex ante basis. See: World Bank. Independent Evaluation Group. 2016. World Bank Group Support to
Transformational Engagements: An IEG Category II Learning Product, 2016. Washington D.C.: World Bank Group.
88 Countries in which low-income country Debt Sustainability Analysis ratings deteriorated were Benin, Cameroon, Congo, Rep., Ethiopia,
The Gambia, Lao PDR, Liberia, Madagascar, Mauritania, Mozambique, Nigeria, Papua New Guinea, Tajikistan, Samoa, Tonga, Vanuatu,
Yemen, and Zambia.
89 SDR34.6 billion. Valued at the IDA17 USD/SDR reference rate of 1.50718.
90 Total commitments amount to US$55 billion when valued at the exchange rate at the time of project approval and including guarantees
at 100 percent of the face value. Total commitments during IDA17 amount to SDR38.5 billion (US$58 billion) when valued at the IDA17
replenishment exchange rate of 1.50718 USD/SDR and including guarantees at 25 percent of face value.
91 Includes US$1.1 billion in grant element, which reflects the concessional feature of the loans and is counted as a grant-equivalent
contribution from donors.
92 In addition to WBG transfers, internal resources, carry forward from previous replenishments and MDRI contributions.
93 IDA Deputies endorsed this proposal at the IDA17 Mid-Term Review in Dakar, Senegal in November 2015. The SUF proposals became
effective upon approval by IDA’s Executive Directors in March 2016. See: Enhancing IDA’s Financial Support in IDA17, IDA/R2016-0019/1,
March 2, 2016.
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IDA17 Retrospective: Maximizing Development Impact
A total of 51 countries pledged to IDA17, the highest Figure 31. A Record IDA Financing Envelope
number of partners in IDA’s history at the time. Four
countries—India, Indonesia, Malaysia, and Thailand
Due to Innovations (US$ million)
—pledged to become IDA donors for the first time, 60,000
joining former IDA clients China, Chile, Egypt, Korea, 11,107
the Philippines, and Turkey. 50,000
4,693
4,061
40,000
INNOVATING TO SCALE UP DEVELOPMENT
FINANCE 30,000
42,120 44,582 43,202
IDA17 optimized IDA’s balance sheet, marking a 20,000
turning point in the way IDA finances its operations.
Since IDA’s establishment in 1960, the IDA 10,000
financing framework has fully relied on donor grant
0
contributions.94 IDA17 expanded on the innovations IDA15 IDA16 IDA17
introduced in IDA16 that allowed client countries to Re ul r resources Acceler tion of rep ments;
accelerate their payments or voluntarily make pre- Adjusted lendin terms
payments. Also for the first time in IDA’s history, IDA17 Concession l P rtner Lo ns;
Optimi ed use of liquidit
introduced leverage of its balance sheet through debt
financing in the form of CPLs from donors. In addition, Source: World Bank.
IDA optimized its liquidity management policy and
created US$5 billion of additional resources for IDA17.
Jointly, these innovations generated an additional
US$15 billion95 in financing for the poorest and most
vulnerable countries (figure 31).
94 Switzerland contributed to IDA during IDA9 in terms of loan financing in the amount of SDR 184.46 million, which was converted into
grant contribution after Switzerland became a member of IDA.
95 US$15.17 billion rounded.
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IDA17 Retrospective: Maximizing Development Impact
Box 26. Concessional Partner Loans in IDA17
• CPL donors: Five countries provided these resources in addition to their grant contributions: China,
France, Japan, Saudi Arabia, and the UK.
• Currencies: Loans were provided in the four currencies of the SDR basket at that time (EUR, USD,
YEN, GBP).
• Terms: One was provided at maturity of 40 years and the rest of 25 years. The all-in coupon
rates of the concessional loans range from zero to 1 percent in SDR terms, with an average cash
borrowing cost of 0.6 percent.
• Additionality principle. Recognizing that leveraging IDA’s balance sheet sustainably requires
continued strong donor grant contributions, the IDA17 CPL framework aimed at balancing strong
incentives to donors for providing grant funding with recognition for their additional contributions.
The former was achieved by introducing the requirement that donors would provide at least 80
percent of their IDA16 basic contribution amount in the form of a core grant contribution and
provide at least their IDA16 basic contribution amount on a total grant equivalent basis.
• Prudential debt limit. IDA also established a prudential debt limit (SDR 6.1 billion), setting the
maximum volume of debt that could be sustainably incorporated in IDA17. This was achieved by
offering donors burden share recognition and voting right allocation for the concessional loan
based on its grant element*.
• One more benefit: In addition to increasing the lending envelope notionally, the funding from the
loans improved IDA’s projected liquidity and thereby enabled IDA to commit an additional US$1.36
billion (equivalent of SDR 900 million) in internal resources.
*
The grant element of a loan recognized in IDA17 is the difference between the cost of the concessional loan to IDA and the
additional revenue that the loan can generate for IDA.
LEVERAGING THROUGH DEBT FINANCING IDA’s exceptionally strong equity base and ample
liquidity, conservative financial policies, important
While grant contributions remain at the core of IDA’s public policy mandate, strength of donor support,
financing, IDA17 included for the first time debt leverage high quality of governance, and well-diversified loan
through CPLs, increasing the IDA17 lending envelope portfolio. (For more, see the IDA investor website,
by US$4.9 billion.96 Special circumstances, including the available at http://treasury.worldbank.org/).
low interest rate environment, pressure on aid budgets
in a number of contributing partners combined with OPTIMIZING THE USE OF LIQUIDITY
high demand from IDA clients, and the need to provide
transitional support for graduating countries, created IDA17 responded to increasing demand and financing
a case for introducing concessional debt funding (see needs by also optimizing the management of IDA’s
box 26). liquidity framework. Agreed during the IDA17 Mid-
Term Review in the fall of 2015, an additional US$5
Building on the groundwork to leverage IDA’s balance billion was generated for IDA17 by expanding the
sheet with CPLs in IDA17, the IDA18 financing framework eligibility of liquid assets that can count towards
introduced large-scale, transformational leverage by IDA’s minimum liquidity buffer. A sensitivity analysis
expanding debt funding to capital markets. To prepare confirmed that IDA could prudentially release US$5
for market access, in September 2016 IDA obtained its billion in internal resources that had been set aside in
inaugural credit rating from Standard & Poor’s Global the investment portfolio and were uncommitted while
Ratings and Moody’s Investors Service in September continuing to meet IDA’s liquidity objectives, even
2016. The triple-A ratings from both agencies reflect under emergency liquidity scenarios.
96 SDR 3.3 billion and include the grant element of CPLs.
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IDA17 Retrospective: Maximizing Development Impact
OTHER FINANCIAL INNOVATIONS TO BETTER of India, support was channeled to the country’s most
MEET CLIENTS’ NEEDS vulnerable and poorest states. Non-concessional terms,
similar to those from the IBRD, were also introduced
Adjusting Lending Terms under the SUF, expanding the range of financing
products to include non-concessional terms for revenue
Responding to clients’ requests, floating interest rates generating projects and supporting IDA’s evolving client
were introduced in IDA17 for transitional support, “hard- base. For further details, see chapter 2, section 5.
term” lending, and non-concessional loans under the SUF.
Continuing IDA16 Financial Innovations
IDA’s regular lending terms were adjusted, reflecting on Acceleration of Repayments
the improved economic growth and capabilities
of many IDA’s clients, increasing the IDA17 lending IDA17 reviewed and continued implementation of two
envelope by US$1.2 billion. Hardening the lending policies introduced in IDA16 that allowed clients to
terms allowed resources to be recycled more quickly, either accelerate their credit repayments or to make
increasing the available resources for new operations. voluntary prepayments. In November 2013, IDA’s Board
The maturity of regular credits for IDA-only countries approved the implementation of the accelerated credit
was shortened to 38 years from 40, with a straight-line repayment clause for nine eligible graduates98 at the
amortization of principal.97 The rationale for the revision start of IDA17, increasing the IDA17 lending envelope by
of IDA’s lending terms was based on (i) improvements US$2.3 billion.99.Two countries100 voluntarily prepaid their
in the risk of debt distress of low income countries and outstanding IDA credits, further increasing the IDA17
the assessed impact of the hardened terms on their lending envelope by US$570 million.101
debt sustainability risk ratings at the time; and retained
grant allocations for those countries assessed at high IDA “Participations”
or moderate risk of debt distress; and (ii) the principle
that IDA terms remain highly concessional relative to IDA17 introduced the IDA Participations Pilot Program102
other multilateral development banks, as well as the to allow partners103 to participate in financing IDA projects
impact of possible actions by other such banks. already under implementation that meet their specific
priorities, without undermining IDA’s un-earmarked,
Differentiated credit terms were provided to India on country-driven allocation model. The program also
an exceptional basis to help smooth its graduation allows partners to invest with IDA and receive returns
and transition out of IDA, and for financing provided in the form of a share of principal repayments and,
to countries under the SUF. India received transitional where applicable, interest payments, corresponding
support during IDA17 on terms close to those applied to with the share of participation in the project. No IDA
IBRD resources. The experience in providing exceptional participation agreements have been contracted to date,
transitional support to India informed the approach to mainly reflecting limited awareness of the option and
transition support in IDA18, during which Bolivia, Sri the fact that it does not allow donors to earmark funding
Lanka, and Vietnam are eligible to receive such support. from particular projects. Participations will be further
A key lesson from the India experience is that this type considered in relation to the broader "mobilization
of support helped the graduating country implement toolbox" of IDA and the World Bank, including stand-
key development projects for moving sustainably to alone trust funds, co-financing, and buy-downs.
the next phase of being an IBRD borrower. In the case
97 Considering the specific vulnerabilities of small island states, these countries continued to receive assistance of regular IDA credits on old
terms (40-year maturity; 10-year grace period).
98 Angola, Armenia, Azerbaijan, Bosnia and Herzegovina, Egypt, Georgia, India, Iraq, and the Philippines.
99 SDR 1.5 billion.
100 Azerbaijan and Indonesia.
101 SDR 378 million.
102 The policy for implementation was approved by the Board in June 2015.
103 Under an IDA Participation, any sovereign state (or agency or other entity of a sovereign) which is a member of the WBG, or any private
donor which is an eligible donor to a trust fund managed by the WBG, would be an eligible “Participating Partner”.
101
IDA17 Retrospective: Maximizing Development Impact
Figure 32. Historical Approval of IDA Single-currency Lending
4.0 80
IDA16 IDA17
3.5 70
Approved tot l (SDR billions)
3.0 60
Number of Credits
2.5 50
2.0 40
1.5 30
1.0 20
0.5 10
0.0 0
2012 2013 2014 2015 2016 2017
USD EUR # of credits
Source: World Bank.
Expanding Currency Options for IDA Clients Single currency lending saw a strong uptake over the
course of IDA17, reflecting demand from IDA clients
The Single Currency Lending Pilot from IDA16 was and increased efforts in client outreach (figure 32).
expanded in IDA17. This program allows IDA recipients During IDA17, 112 Single Currency Lending credits
to denominate new credits in the SDR constituent were approved for an equivalent of SDR 6.3 billion, a
currencies (currently US dollar, euro, pound sterling, major increase from the 4 credits amounting to SDR59
Japanese yen and Chinese Renminbi). The initial IDA16 million approved during IDA16, due to increased
pilot limit of SDR-equivalent 3.0 billion104 was extended awareness. The greatest demand was for US dollar
in IDA17 and increased to SDR 7 billion to accommodate credits, totaling 56 such credits for a total of SDR
potential demand for single-currency financing under 4 billion. Euro-denominated credits became more
the IDA17 SUF.105 The pilot was available for all types of attractive over 2016-2017 partially due to increased
IDA credits and to all IDA clients. Single currency loan interest from West and Central African countries.
pricing for IDA-only and blend credits was determined These countries use one of the two CFA francs, which
to maintain the financial equivalence of the service are currencies guaranteed by the French treasury and,
and interest charges in SDR terms, while also ensuring as such, are highly correlated to euro. Fifty-six credits
adequate recovery of administrative costs. The SDR were euro-denominated for a total of SDR 2.4 billion.
pricing for transitional support, hard-term lending
and the SUF credits were determined by, and directly
referenced to, the relevant IBRD pricing in the chosen
currency for the relevant maturity.
104 IDA Single Currency Lending Pilot program, IDA/R2012-0140 dated May 16, 2012.
105 In April 2015, the Board approved to extend the pilot within the SDR 3 billion overall limit for a three-year period or until the program limit
of SDR 3 billion was reached, whichever came first. See: Extension of the IDA Single-Currency Lending Pilot Program AC2015-0011 dated
April 3, 2015. In February 2016, the Board approved to increase the Single currency lending program from SDR 3 billion to SDR 7 billion.
See: Enhancing IDA’s Financial Support in IDA17 IDA/R2016-0019/1 dated March 2, 2106.
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IDA17 Retrospective: Maximizing Development Impact
CHAPTER 3
PREPARING FOR
IDA18, 19 AND BEYOND
Responding to the emerging global context and
addressing increased complexities, IDA17 took
SERVING IDA’S EVOLVING
CLIENT BASE AND ADDRESSING
some important steps that laid the foundation for
groundbreaking policy and financial innovations to
be introduced in IDA18 and beyond. The world today
seems awash with hardships that imperil the progress
of past decades, including conflicts old and new and
NEW VULNERABILITIES
their ripple effects—such as the refugee crisis—and
the increasingly grave risks from climate change. The The enhancement in support to FCSs during IDA17
countries IDA serves highlight both the tremendous paved the way for even bolder scale up in IDA18.
gains possible, even in such a fraught environment, As discussed in this retrospective, the expanded
and also the grave risks; some have graduated resources were fully absorbed, the performance of
beyond borrowing to become donors, while others the portfolio remained strong, the Bank increased
are falling back into greater poverty due to fragility. its operational effectiveness in FCSs, and important
The international community is committed to an results were achieved. In terms of financing, the
ambitious new agenda for achieving development IDA17 reorientation toward fragility in IDA’s allocation
goals and scaling up financing for it, while at the same framework increased financing for FCSs by about one-
time facing ever-growing pressures to tighten their third. IDA18 made a further leap in this regard, allowing
budgets and curb foreign aid. a continued focus on poverty and performance in the
allocations, while enabling a greater share of resources
Recognizing the realities of the current environment, dedicated to addressing fragility among IDA clients.
as well as the need to maintain and improve More broadly, IDA18 enhanced the strategic focus on
its performance, IDA listened to its clients and FCSs, building on the lessons and experiences gathered
stakeholders, learned from experiences, and adapted under IDA17. It stems from the recognition that there
its business model, financing framework and priorities is marked heterogeneity across such countries, with
to deliver on its commitments under IDA17. This period more diverse and interlinked drivers and risks of FCV.
brought a number of important changes to IDA’s The IDA18 Risk Mitigation Regime—which focuses
policy and financing frameworks, laying the foundation on prevention rather than responses—and the IDA18
for IDA18, IDA19 and beyond to introduce further support to refugees under its new financing window
transformative actions. They can be categorized into are two important innovations introduced based on
four broad areas, outlined below. the gaps identified during IDA17. Also, small states
103
IDA17 Retrospective: Maximizing Development Impact
benefitted from greater financial support during IDA17, deteriorated between 2014 and 2017 (see box 23). As
which was further expanded in IDA18 – supporting the a result, prioritization of debt considerations under the
specific vulnerabilities of countries challenged by their SUF will remain a central tenet of its management in
circumstances, and emphasizing that IDA supports IDA18 and a full discussion around these issues will be
development for all. prepared for the IDA19 replenishment consultations
taking place during 2019.
IDA17 laid the pathway for further strengthening
pandemic risk management at the global, regional, More broadly, IDA special windows, already increased
and country levels. Building on past experiences, in number and size during IDA17, were further
for example the West Africa Regional Disease expanded during IDA18. Based on strong demand
Surveillance Systems Enhancement Program (a for the three IDA17 special windows that provided
series of projects implemented during IDA16, IDA17 additional financing to address crisis response,
and now IDA18) to address systematic weaknesses promote regional development and take advantage
in national and regional capacities for disease of transformational development opportunities,
surveillance, IDA18 will support more IDA countries IDA18 further scaled up resources for these windows
in systematically developing pandemic preparedness and created new mechanisms to help address key
plans and consolidating disease-specific plans at the development challenges. Responding to global
national level, as well as to develop multi-sector health needs, the Regional Program has been expanded to
emergency frameworks for better preparedness for, support refugees and their host communities in IDA
response to, and recovery from future health crises. countries, and the new Private Sector Window was
created jointly with IFC and MIGA to support private
Transition support and the SUF, introduced in sector engagement in IDA countries, particularly in
IDA17 and refined in IDA18, provided IDA clients FCS. Moving forward, maintaining the right balance
opportunities to experiment with accessing financing between core country resources allocated through
on non-concessional terms and helping smooth the IDA Performance Based Allocation system and
graduation to IBRD financing. Early SUF experiences special purpose resources made available through
in IDA17 suggested strong demand and value in the IDA windows will remain important to continue to
offering a similar facility in IDA18 to allow financing build on IDA’s strength as a source of unearmarked,
for transformational projects that cannot be financed predictable, and effective development financing for
through IDA core allocations. However, reversing the poorest countries.
a highly positive post-MDRI trend, debt risk ratings
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IDA17 Retrospective: Maximizing Development Impact
SHAPING IDA’S POLICY AGENDA overhauled these indicators in favor of simpler yet
more compelling indicators.106 The governance and
institutions special theme in IDA18 has built upon the
Work on enhancing inclusive growth and strengthening core vision in IDA17 of maximizing development impact
governance and accountability laid the ground for by responding to a global emphasis on boosting
the new IDA18 special themes on “jobs and economic efficiency, openness, and accountability in IDA client
transformation” and “governance and institutions”. countries, while using better data and stronger
The work on the IDA17 special themes, as evidenced partnerships to achieve sustainable, measurable
by their continuation into IDA18, progressed but there development outcomes.
is a large and unfinished agenda on gender equality,
climate change, and FCSs.
IDA17’s work on inclusive growth helped inform a
REALIZING WBG SYNERGIES
greater focus on the jobs agenda. In IDA18, jobs are
at the forefront of economic transformation. The early IDA17 enhanced WBG synergies through Joint
results from the IDA17 Jobs Diagnostics pointed to the Implementation Plans, laying the foundation for more
need to better integrate this priority within Systematic formal collaboration mechanisms such as the IDA18
Country Diagnostics, country programming, and IFC-MIGA Private Sector Window and the WBG
lending in IDA18, with specific goals in terms of job “maximizing finance for development” approach.
creation, job quality, and labor market outcomes for The Private Sector Window was created in response
vulnerable population groups. A new generation of to strong, unmet demand for pioneering responsible
job-focused lending operations is emerging, drawing private investment in IDA countries, especially FCSs.
from country strategies that address macro-economic It also recognized that well-targeted public resources
fundamentals, and labor supply and demand in a can help promote public goods through supporting
balanced manner. Many are youth employment direct private investments. There is strong demand
programs, responding to the record number of young for such support as private investors are increasingly
people—60 million each year globally—becoming of looking to invest in frontier markets, while mitigating
working age. risk. The new Window will enable IDA to operate in
the space where public policy and private investment
Similarly, promoting the quality of public service meet by leveraging the capacity and experience
delivery as part of the inclusive growth agenda of IFC and MIGA to directly support investments
helped inform the development of "governance and that grow the domestic private sector and create
institutions" as an IDA18 special theme. Naturally, conditions for long-term responsible investment. It will
governance and institutions have always been central also provide an opportunity for the WBG to operate
to IDA operations. However, IDA17 saw reforms in in a more holistic manner, drawing on expertise from
both its procurement framework and in domestic across the three institutions: IDA and its business
resource mobilization that emphasized that there is no environment and sector reforms; IFC investments;
prescribed set of reforms appropriate to all countries; and MIGA guarantees. The Joint Implementation
rather there needs to be a more flexible, informed Plans and the launch of the Private Sector Window
approach to each of these issues. have generated close collaboration on upstream
project pipeline development efforts between IFC
While IDA17 called for better results and solutions and IDA. WBG teams have started to work together
in development, the inclusion of "governance and on programmatic approaches to tackle development
institutions" as a new special theme has enhanced the challenges in challenging regions or sectors, such as
focus on delivering results. Previously, the World Bank the Joint Capital Markets Program, power in Africa,
reported on four results indicators that measured digital infrastructure, support to women in the Pacific
the number of countries with strengthened public region, irrigation in the Sahel, and sustainable tourism
management systems in: (i) civil service and public in low-income countries. All WBG instruments—
administration; (ii) tax policy and administration; (iii) including IDA policy and project interventions, IFC
public financial management; and (iv) procurement. investments, MIGA guarantees, and new de-risking
These broad indicators only scratched the surface tools such as the Private Sector Window—are all being
of the scope of institutional strengthening, so IDA18 considered in the holistic WBG approach.
106 For instance, the previous indicators would measure the strengthening of a country’s tax administration system. The new RMS indicator
on tax administration aims to increase Tax-to-GDP ratios above 15 percent. This approach more effectively guides resources to monitor
specific, measurable goals during the IDA18 period.
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IDA17 Retrospective: Maximizing Development Impact
IFC is strengthening its focus on IDA and FCSs In • A long, gradual, complex process: It is important
FY17, IFC launched its new strategy—“IFC 3.0”—which to proceed in stages, by taking the time for all
adopts a similarly holistic approach to development the technical groundwork, and learning along
challenges by expanding the role of the private sector the way. Introduction of leveraging required
in countries and sectors that have benefitted the extensive preparatory work with donors and other
least from private investment, such as IDA and FCSs. stakeholders to understand market requirement
Its focus is on creating markets and mobilizing new requirements for accessing debt.
pools of private capital. “IFC 3.0” will also require IFC • Ensure financial markets understand the value
to systematically partner with IDA to identify policy of IDA’s business model and value-added in the
issues and regulatory reforms needed in key industries development finance architecture.
and sectors, with a special focus on priority countries,
designed to unlock opportunities for private sector IDA17 represented another important phase in the
investments. trajectory that is helping IDA optimize its resources to
maximize development impact:
The institutional “maximizing finance for development”
approach will encourage cooperation on potential • IDA16. Study and analyze: The option of introducing
projects across the WBG and with other multilateral CPLs was developed in the IDA16 working group
development banks, as well as the systematic on IDA’s long-term financial sustainability.
coordination of public, private, and blended funding • IDA17. Prepare and test: This period brought the
solutions. This approach is expected to help countries introduction of CPLs, optimized the use of IDA’s
maximize their development resources by drawing liquidity, and saw IDA obtain its first ever credit
on private financing and sustainable private sector rating (triple-A). There was agreement on the
solutions to provide value for money and meet the implementation framework, balancing recognition
highest environmental, social, and fiscal responsibility while ensuring additionality. IDA was authorized to
standards. It will also preserve scarce public financing borrow up to US$9.2 billion.
for those areas where private sector engagement is not • IDA18. Reform: Bringing IDA to capital markets
optimal or available. for the first time. IDA explored options to further
leverage its equity, complementing its donor-driven
model with a more demand driven approach; a move
LEVERAGING IDA’S to capital markets was the logical consequence.
• IDA19 and beyond. Review, adjust and consolidate:
BALANCE SHEET Operationalizing the new hybrid model maintains
IDA’s ability to review and adjust its financial
framework—within and across replenishment
IDA17 introduced financial innovations by stretching cycles—to learn lessons and consolidate the model.
IDA’s balance sheet, making available an additional
US$15 billion through introducing limited debt
financing in the form of CPLs, and optimizing the
use of IDA’s liquidity. Implementation of IDA17 CPLs
LOOKING BEYOND IDA18
and preparation for IDA market access in IDA18 and
beyond confirmed the following lessons learned: In retrospect, IDA17 has validated the core of IDA’s value
proposition—its multilateral, country-based model
• Ensure additionality: To ensure sustainability built on a sound financial basis—while showcasing
of IDA’s financial model and protect availability the areas where more support is needed. Over the
of concessional resources to clients, access to course of program implementation, IDA17 placed
debt funding (either from donors or markets) emphasis on solidifying some of its core strengths as
cannot substitute for donors’ grant contributions. a: (i) sound investment with sustainable capacity to
Concessionality of financing to clients has to be scale up, (ii) long-term investor in development and
supported by additional donor contributions in premier development institution for the poorest, (iii)
each replenishment. leader in taking on the advancement of global public
• Business drives finance: A compelling value goods such as climate and health, and (iv) flexible and
proposition is more important than financial responsive agency helping to tackle emerging threats—
engineering. It is critical that the new financial model such as fragility and crisis—and opportunities, such as
allows IDA to stay aligned with its core mission and partnering with the private sector.
focus on providing concessional financing to low
income countries.
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While the IDA18 replenishment—launched in July 2017 analyzed and discussed with clients, country teams,
—responds to IDA countries' challenges, challenges shareholders, and other stakeholders, such as other
and builds on IDA’s proven ability to evolve, some key multilateral development banks.
IDA roles remain to be strengthened over IDA19 and
beyond. Looking ahead, IDA countries continue to • Ongoing and even greater challenges in FCSs,
face major development challenges and vulnerabilities. migration, and crisis response. In spite of much
Poverty is increasingly concentrated in the most fragile progress in IDA17 and pronounced emphasis in
countries, which face a range of risks. The development IDA18 on FCSs, crisis response, and support for
agenda of countries that are on a path to graduate out refugees, the trend of greater fragility impacts
of IDA is also increasingly complex, requiring nothing millions of people in the affected countries and
less than economic transformation. All countries beyond, due to resulting migration flows. Increased
are facing the challenge of climate change. And the financing, and more “boots on the ground” are part
debt situation of some countries has started to be of of the solution. Another aspect to IDA’s enhanced
concern, reducing space for the aggressively financing approach is partnering with other development
the development they need. At the same time, new agencies active in humanitarian efforts. Short-term
opportunities are emerging. The SDGs have created a responses must go hand-in-hand with longer-term
space for focusing on truly sustainable interventions. development. IDA17 experiences—with the Ebola
Empowerment of women is in the global spotlight. response, for instance—have confirmed this key
More and more, leaders from the private sector are point. Going forward, structuring and balancing
coming forward to support development. These the humanitarian-development-peace nexus will
evolving development challenges and opportunities, remain atop the IDA agenda. Coupled to this
paired with institutional considerations in IDA and agenda will be the treatment of displacement
the WBG at large, are bringing some important and migration within IDA countries, and migration
and topical themes on the agenda to be addressed from IDA countries to their non-IDA neighbors.
through upcoming replenishment consultations and Partnerships and a comprehensive dialogue with
design. These include, but are not limited to: middle income countries, as well as with the
various other development partners and developed
• Increasing debt accumulation in IDA countries. nations affected by increased migration flows, will
Understanding that there is a deterioration in debt be essential.
risk ratings across IDA clients since 2014, IDA needs
to continue to help clients effectively address debt • Making development truly sustainable including by
sustainability. This will be particularly challenging addressing spillover effects from other countries.
given the current situation of IDA clients accessing Development progress is at risk from increased
more commercial debt. At the same time, rising fragility and crises, but also due to, for example,
debt levels in IDA countries could lead to a need climate change. The fact that neighboring countries,
for greater concessionality of resources allocated or countries on another continent, impact the
under the Performance-Based Allocation system lives of people in other nations emphasizes how
and under the special windows. Increasing important it is to look through the multilateral
grant levels impacts IDA’s financial framework, lens. Progress made during IDA17 and previous
particularly the new IDA18 hybrid model. If IDA periods—on gender, for instance—is impressive,
gives out more grants, instead of loans, IDA’s but much more progress remains to be made.
overall resource envelope will be more constrained. Gender equality goes beyond changing laws; it is
also about changing the norms and expectations
• Graduation needs and transition across the WBG. about female and male roles and ultimately
Experiences from past IDA graduates, including about changing power relations in schools, in
India in IDA17, show the critical importance governments and in households. For education,
of smoothing the transition from IDA to IBRD in spite of progress on enrollment targets under
resources. Graduation should mark a proud moment the Millennium Development Goals, a significant
in a country’s development, but it is important to gap remains relative to the SDGs’ ambitions, which
ensure that the investments which are beneficial focus on learning outcomes such as literacy rates
to the country or help it to contribute to provision and test scores. On climate, there is a need to hear
of global or regional public goods continue to be the demand from IDA clients vis-à-vis expanding
supported as the amount of concessional financing the focus on elements of sustainability beyond
is being reduced. Recognizing that graduation is climate change—including deforestation, local air
based on a long-term dialogue with IDA clients, and water pollution, land degradation, and ocean
and won’t happen overnight, proposals will be acidification. Given the magnitude and spillover
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IDA17 Retrospective: Maximizing Development Impact
effects of the global climate challenge, questions • Harnessing digital technologies to help IDA clients
regarding the use of concessional IDA resources to “leapfrog” and to meet local challenges. Digital
support global environmental public goods, even if technologies have spread quickly and are rapidly
this requires implementation by non-IDA countries, reshaping economies in many countries. The
will continue to be raised. potential of introducing frontier technologies
to enhance development impact is creating
• More than ever, maintaining existing partnerships new opportunities for IDA clients. New digital
and building new ones will be key to meeting technologies can help IDA countries “leapfrog”, for
emerging development challenges. In order to instance in agriculture, energy, governance, and in
deliver the ambitious global development agenda various social sectors. IDA itself is also using frontier
and prepare to meet emerging headwinds, IDA technologies to help bring smart solutions to meet
must strengthen partnerships with a range of allies, local challenges. The successes and experiences
including bilateral and multilateral organizations, in a number of IDA operations over the past
new development players, the private sector, and decade could be replicated—if tailored to country
IDA partner countries. To leverage the unique needs—in other IDA clients. At the same time,
strengths of these different development players, while digitalization of economies has the potential
cooperation is more important than ever before. For to increase access of the poor to promising
example, IDA’s work on FCV is greatly enhanced by technologies that could boost their welfare, it
partnering with the UN and the EU when conducting does have impact on the nature of work and job
Recovery and Peacebuilding Assessments, such as markets. “Digitalization” of economies requires that
in the Central African Republic where a harmonized countries prepare for the changing nature of the
prioritization framework covered political, security, job market and human capital development more
humanitarian, and development activities. For broadly. Moving forward, this agenda will demand
IDA18, similar partnerships and cooperation were a holistic approach to maximize development
key in designing assistance to refugees and host impact for the poor.
communities, in particular IDA collaboration with
the UN High Commissioner on Refugees. Moving These examples illustrate the opportunities to
forward, the role of development institutions— maximize development impact for all and make
including IDA—would not only include the provision the next development leap forward, as well as the
of official development financing (concessional importance of a cross-sector approach, a continued
or otherwise) and technical expertise, but also to focus on results, and continued attention to long-term
increasingly leverage partnerships. priority areas.
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ANNEX 1: IDA17 POLICY COMMITMENTS – STATUS OF
MONITORABLE ACTIONS
Objective Recommendations/ Product/ Status of Implementation at the end of IDA17
Proposed Actions Target Date
MAXIMIZING DEVELOPMENT IMPACT
ALIGN IDA ACTIVITIES TOWARD ACHIEVING THE WBG GOALS
Establish a 1.1. Align all IDA Country Progress Report Achieved.
more evidence- Partnership Frameworks on Max. Dev. (i) The SCD is being used to identify constraints and
based country (CPFs) to the WBG goals Impact for IDA17 priorities in IDA countries. During IDA17, a total of 23
engagement by supporting countries Mid-Term Review CPFs, one Regional Partnership Framework and 34
model to (i) collect key data (MTR) SCDs were approved in IDA countries.
(or help fill gaps through
appropriate surveys); (ii) The “Strategic Actions Program for Addressing
(ii) use the Systematic Development Data Gaps” launched in September
Country Diagnostic (SCD) 2015, and is under implementation. It includes specific
to identify constraints and action plans in three data areas: household surveys (for
priorities; and (iii) align poverty and shared prosperity data); price statistics;
strategies to identified and civil registration and vital statistics. A new action
priorities. plan for geospatial data was also launched.
(iii) CPFs are aligned to identified priorities.
1.2. Introduce Bank CODE/Board END- Achieved. The new approach to country engagement
procedure for the new FY14 (CPF) was implemented, starting in FY15.
Country Partnership
Framework establishing
requirements for the new
approach for implementation
starting in FY15.
LEVERAGE PRIVATE RESOURCES
Foster private 1.3. Carry out WBG joint Progress Report Achieved. As of June 2017, there were 29 JIPs (11 in
sector-led implementation plans on Max. Dev. FCSs and 2 regional programs) at different stages in
growth and (JIPs) in at least 20 IDA Impact for IDA17 IDA countries.
job creation countries (of which at MTR
by expanding least 10 are fragile or
synergies within conflict-affected states
the WBG and [FCSs]), including joint
the range of frameworks to measure
instruments results; and carry out a
to increase systematic assessment of
IDA countries’ implementation and results.
access to market
1.4. Expand scope of IDA Board Paper Achieved. Partial Credit Guarantees (PCGs) scope
funding.
guarantees beyond existing expansion included in the paper, “Enhancing the World
Partial Risk Guarantees and Bank’s Operational Policy Framework on Guarantees”,
align guarantee policies approved by the Board on December 3, 2013. PCGs are
with lending policies. already in use, e.g., in Ghana.
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Objective Recommendations/ Product/ Status of Implementation at the end of IDA17
Proposed Actions Target Date
LEVERAGE PUBLIC RESOURCES
Strengthen 1.5. Strengthen country Progress Report Achieved. The Global Practice group is providing
public sector Public Financial on Max. Dev. support for strengthening country Public Financial
capacity and Management (PFM) and Impact for IDA17 Management and procurement capacity and systems.
institutions to procurement capacity and MTR (Also see 1.9).
respond to new systems, and expand their
opportunities use by more effectively
and risks by leveraging knowledge,
supporting capacity building and
country financial operational support for
management Bank financed operations
systems, client through the pooling
accountability for of PFM, procurement,
service delivery governance, anti-
and effective corruption and social
partnerships development expertise in
the new Global Technical
Practice on Governance.
1.6. Expand use of Progress Report Achieved. The Strategic Framework for Mainstreaming
beneficiary feedback in on Max. Dev. Citizen Engagement in WBG operations was issued
IDA–supported projects Impact for IDA17 in November 2014. The latest monitoring results
and report at IDA17 Mid- MTR indicate a significant improvement in use of beneficiary
Term Review on impact of feedback: IDA projects that include a beneficiary
these mechanisms. feedback indicator in the results framework reached
92 percent at the end of FY17 compared to 38 percent
at the beginning of the IDA17 cycle. Similarly, projects
with beneficiary-oriented design rose from 25 percent
when first reported in FY14 to 99.5 percent in FY17.
1.7. Develop a system Progress Report Achieved. The design of the system (web-based)
for tracking IDA project on Max. Dev. for tracking IDA project financing partnerships (co-
financing partnerships. Impact for IDA17 financing at an aggregate level) was completed and is
MTR being used to track financing partnerships.
1.8. Promote more effective Progress Report See 5.8.
response in FCSs by on Max. Dev.
implementing the new Impact for IDA17
strategic and results MTR
framework for the UN/
WB partnership in FCSs to
strengthen collaboration
among the UN, WB, MDBs
and other development
partners, including through
the New Deal.
LEVERAGE KNOWLEDGE
Advance the 1.9. Establish new Global Progress Report Achieved. Global Practices (GPs) and Cross-Cutting
science of Practices within the on Max. Dev. Solution Areas (CCSAs) were introduced.
delivery by WBG to facilitate a more Impact for IDA17
improving effective transfer of MTR
statistical knowledge and expertise.
capacity and the
more systematic
use of evidence-
based methods
for policy-making
and project
design and
implementation,
and by
facilitating
South-South
knowledge
exchange.
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Objective Recommendations/ Product/ Status of Implementation at the end of IDA17
Proposed Actions Target Date
1.10. Report on progress Progress Report Achieved. DECDG is monitoring operations that are
to strengthen country on Max. Dev. strengthening countries’ statistical capacity. The IDA
statistical capacity through Impact for IDA17 Results Measurement System (RMS) indicator on
lending and technical MTR country level of statistical capacity is updated annually.
assistance.
1.11. Ensure more Progress Report Achieved. The WBG is ensuring more systematic use
systematic use of Impact on Max. Dev. and uptake of lessons learned from IEs to address
Evaluations (IEs); develop Impact for IDA17 knowledge gaps via:
and mainstream a wider MTR • Establishing a working group to explore options
range of evidence-based to conduct IEs in a more systematic manner with
tools and approaches to greater linkages to operations to address knowledge
strengthen monitoring gaps.
and evaluation (M&E); and • Stocktaking of existing IEs and a central repository
provide real-time data to of impact evaluations established and regularly
support project mid-course updated.
corrections. • In-depth analysis of select IEs on utilization of
knowledge generated for recalibration of operations
or the design of new operations.
• Monitoring of a new indicator on the number of
impact evaluations supported by the World Bank in
IDA countries.
Some activities related to enhancing knowledge,
learning and results management at the Bank include:
• Launch of the Results Measurement and Evidence
Stream (RMES) network in 2014 to bring together
staff, talent, knowledge, innovations, standards and
operational solutions on results measurement and
evaluation.
• The Core Sector Indicators reform, aimed to re-
purpose the indicators used for corporate reporting
and to streamline, update, and make them fit
for purpose; a smaller set of Corporate Results
Indicators (CRIs) rolled out in FY2017.
• The recently reformed Implementation Completion
and Results Report (ICR), rolled out in July 2017,
to better asses the achievement of results, with
improved guidance that encourages a clearer
articulation of lessons learned;
• Launch of Delivery Challenges in Operations for
Development Effectiveness (DeCODE), a new tool
that helps teams identify and address delivery
challenges by leveraging historical project data from
ICRs of World Bank financed projects and other
sources; and,
• The new Knowledge Management Action Plan which
includes the development of mechanisms that will
ensure that knowledge assets (including evaluation
findings) are readily accessible to staff at the right
time.
• Signaling and incentives for results/M&E (ongoing):
»» Management action to improve quality of M&E
including: clarifying professional mapping defining
competencies and providing tools for M&E staff
»» Use of the Strategic Impact Evaluation Fund
to strengthen impact evaluations of human
development programs in client countries.
»» The Impact Evaluation to Development Impact
initiative aimed at increasing the use of IEs for
evidence-based policy-making.
• The WBG continues its work on promoting general
availability and accessibility of data and lessons for
utilization through support to countries’ Open Data
Initiatives.
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Objective Recommendations/ Product/ Status of Implementation at the end of IDA17
Proposed Actions Target Date
1.12. Develop a system to Progress Report Ongoing. A new strategy for the South-South Facility
report on South-South on Max. Dev. was designed and is under implementation. It focuses
knowledge exchange Impact for IDA17 on an integrated knowledge sharing approach that
activities embedded in MTR aims to help clients find and implement solutions to
operations; their key development challenges by:
• Introducing programmatic knowledge sharing that
Support capacity building enables multiple countries to participate in multiple
for South–South sharing of knowledge sharing interventions over a period of
development experiences. two to three years;
• Using knowledge-sharing experts who ensure
appropriate design, implementation and monitoring
of knowledge exchanges, and
• Providing tools and services to ensure that country
institutions are well prepared to share their
operational experience and lessons learned with
other countries.
• Capacity Building for South-South knowledge
sharing: IDA has stepped up efforts to build country
institutional capacity for capturing, packaging
and sharing operational experiences through the
systematic integration of experiential knowledge and
peer learning in their core operations.
1.13. Develop a Progress Report Achieved. The budget framework supports many
methodology to assess on Max. Dev. components of science of delivery, such as CPFs, SCDs,
how the science of delivery Impact for IDA17 and Learning Reviews.
is incorporated and MTR
supported with appropriate
budget resources in line
with the introduction of a
new budget framework.
STRENGTHEN IDA’S FOCUS ON RESULTS, EFFICIENCY, AND EFFECTIVENESS
Strengthen IDA’s 1.14. Enhance the focus of Annual updates Achieved. The IDA RMS is part of a broader
focus on results the IDA17 RMS on quality of RMS indicators results measurement framework comprising other
by giving priority and outcomes, measuring and IDA17 management tools such as the World Bank Corporate
to outcome progress on IDA17 special Retrospective Scorecard.
indicators themes, and in reaching the
in the RMS, WBG’s strategic goals. The update of the IDA RMS and the WB scorecard is
strengthening closely coordinated, with active engagement across
transparency and units of the Bank, helping to enhance focus on results
accountability to and strengthening the accountability of Regions and
clients, aligning GP/CCSA teams. The IDA17 RMS was last updated in
planning and time for the 2017 Annual Meetings, reflecting progress
budgeting with up to end of June 2017.
WBG goals and
strategy. A new RMS was developed for the IDA18 replenishment
period (FY18-FY20), with sustained effort for introducing
and improving indicators that are strategically relevant
for clients, fine tuning methodologies for their collection
and aggregation and reflecting the Bank’s corporate
priorities and key global emerging issues.
1.15. Use a new budget Progress Report Achieved. Strategic directions – provided by the Senior
process from FY15 to on Max. Dev. Management Team together with the new Country
align resources with Impact for IDA17 Budget Allocation model that incorporates goals
the WBG goals and MTR on poverty and shared prosperity– have framed the
strategy, including IDA17 business planning process to incentivize selectivity and
implementation, and cost efficiency.
strengthen incentives
for selectivity and cost
efficiency.
1.16. Implement investment Ongoing Achieved.
project financing
policies, with improved
accountability frameworks
to ensure quality and faster
delivery.
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Objective Recommendations/ Product/ Status of Implementation at the end of IDA17
Proposed Actions Target Date
1.17. Propose revised Board Paper Achieved. The new procurement policy framework
procurement policy for (2014) was approved in July 2015 and includes special
Board approval which considerations for FCSs.
would incorporate
special considerations for
situations of urgent need
of assistance or capacity
constraints, including in
FCSs.
1.18. Publicly disclose IDA Progress Report Achieved. Aggregate figures of preparation and
project preparation and on Max. Dev. implementation project costs of all IDA countries
implementation costs. Impact for IDA17 (including blend) have been calculated and are
MTR disclosed for each fiscal year of the IDA17 cycle in this
report.
1.19. Pilot calculation of unit Identification of Achieved. Pilot case studies for three sectors (Health,
costs in three sectors. 3 sectors by July Nutrition and Population; Energy and Extractives;
2014 and report as Water) were completed, identifying the emerging
part of Progress lessons and challenges in estimating unit costs. A
Report on Max. technical briefing on the exercise was shared with IDA
Dev. Impact for Deputies during the 2017 Annual Meetings.
IDA17 MTR
INCLUSIVE GROWTH
Make evidence- 2.1. Align all IDA Country Progress Report Achieved. See 1.1.
based design and Partnership Frameworks on Max. Dev.
implementation to the WBG twin goals Impact for IDA17
of inclusive by supporting countries MTR
growth to (i) collect key data
policies central (or help fill gaps through
to country appropriate surveys); (ii)
strategies. use the Systematic Country
Diagnostic to identify
constraints and priorities;
and (iii) align strategies to
identified priorities.
2.2. Introduce Bank CODE/Board end- Achieved. See 1.2.
procedure for the new FY14
Country Partnership
Framework establishing
requirements for the
new approach for
implementation starting in
FY15.
Address 2.3. Roll out a new “jobs Progress Report Achieved. Jobs diagnostics were delivered in
country-specific diagnostic tool” in at least on inclusive all 15 countries (of which 6 FCSs) identified for
impediments to 15 IDA countries (of which growth for IDA17 implementation in FY15-17.
productive jobs. at least 5 are FCSs), using MTR
multi-disciplinary micro-
and macro-level data.
2.4. Establish key strategic Achieved. Priorities are established in the Jobs Group
priorities on jobs and Strategy, Multi-donor Trust Fund proposal and FY15
report on the priorities and VPU Memorandum of Understanding(MOU). Monitoring
targets. is done annually through MOU reporting and Multi-
Donor Trust Fund reporting.
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Objective Recommendations/ Product/ Status of Implementation at the end of IDA17
Proposed Actions Target Date
Address 2.5. Expand coverage Progress Report Achieved. The Bill and Melinda Gates Foundation
impediments of the Global Financial on Inclusive provided funding to expand the Global Findex
to financial Inclusion Database (Global growth for IDA17 project to include an extended module on payments,
inclusion. FINDEX) and other WBG MTR specifically: wage payments, government-to-person
surveys, including to payments, domestic remittances, bill payments, mobile
better measure innovative money, and debit/credit/payment cards.
payments, mobile phone
banking and financial Achieved: The Findex 2014 module was added to the
literacy. Gallup World Poll survey in at least 148 economies
(including IDA countries).
2.6. Support at least 10 Progress Report Achieved. Global programs launched to support IDA
IDA countries to meet on Inclusive (and other) countries for financial inclusion, consistent
their financial inclusion growth for IDA17 with the WBG ‘Universal Financial Access 2020’ goal: i)
targets and priorities MTR Financial Inclusion Support Framework, ii) ‘Harnessing
through financing and Innovation for Financial Inclusion Activities' (i.e.,
technical assistance, technical or financial support) have been supported in
including through the new 23 countries.
Financial Inclusion Support
Framework.
Improve the 2.7. Roll out the BOOST Progress Report Achieved. BOOST database and user manual have
quality and public finance analysis tool on Inclusive been delivered to governments in 36 countries; 16
efficiency of in at least 20 IDA countries growth for IDA17 countries (including 6 in natural resource abundant
public service (of which at least 5 are MTR countries) used BOOST to support data analysis (with
delivery for natural resource abundant support from The Gates Trust Fund which has been
inclusive growth economies). extended through 2018).
by promoting
greater
transparency and
accountability in
public finance
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Objective Recommendations/ Product/ Status of Implementation at the end of IDA17
Proposed Actions Target Date
Foster good 2.8. Develop and use Progress Report Achieved. (i) Legal and Regulatory: Completed new
governance of innovative tools and on Inclusive publications and guidance notes in cooperation with
natural resource build capacity to support growth for IDA17 IMF-FAD on fiscal regimes for mining and mining tax
wealth and government efforts to: MTR administration; a study and training on transfer pricing
adoption of (i) improve the legal and in extractive industries: new portal for African mining
best practices regulatory frameworks for laws – Africa Mining Legislation Atlas – developed and
in extractive EIs; (ii) enhance revenue rolled out in partnership with the African Development
industry (IE) collection from EIs; (iii) Bank; and support for improvement of legal regimes
management. increase the local content for oil, gas and mining in client countries is ongoing.
and positive impact of
EI investments, including Achieved. (ii) Local Content: Completed: toolkit
through building capacity for local content for extractives; a study on local
in SMEs and labor training employment in Ghana; a global conference on
and through agreements extractives local content held in January 2016 in Mexico
with EI companies City; an Extractives-Led Local Economic Diversification
that benefit local (ELLED) program is under implementation , a
communities; (iv) support successful Community of Practices in operation and a
implementation of EITI and new ELLED Framework is planned for roll out in FY18;
increase transparency. and, a new diagnostic and planning tool – GeoChains
– was developed to support economic resilience in
regions dominated by extractive industries
Achieved. (iii) EITI: Total number of EITI candidate
countries grew to 52. World Bank financing of EITI
implementation, either in the form of the Extractives
Global Programmatic Support (EGPS) or bilateral
grants or IDA financing, was provided to 30 out of 49
eligible EITI countries. The WB financed 4 Regional
Peer Learning Workshops in Francophone Africa,
Anglophone/Lusophone Africa, Latin America and the
Caribbean, and East Asia. Pilots on integration on EITI/
transparency mainstreaming ongoing in 5 countries,
completed in one country.
Achieved. (iv) New instruments: A multi donor trust
fund – the EGPS became effective in June 2015,
supported by 9 donors and has approved 33 country-
level grants; 2 regional activities; and 17 global activities
as of October 2017.
GENDER EQUALITY
Deepen 3.1. All IDA Country Progress Report Achieved. The Gender CCSA continues to review
integration of Partnership Frameworks on gender equality country strategies at the concept note and decision
gender equality incorporate gender for IDA17 MTR stages. All SCDs benefit from analytic work and
considerations considerations into the quality reviews provided by the Gender CCSA and
in country analysis, content of the other gender specialists to ensure they identify key
strategies and program and the results constraints to poverty reduction and growth due to
operations, framework. disparities between males and females.
including by
focusing on
follow-up actions
and monitoring
and evaluation
as well as
implementation
of regional
strategies
incorporating
specific
commitments,
milestones and
accountabilities.
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Proposed Actions Target Date
3.2. All regions implement Progress Report Achieved. All regions implemented Regional Gender
and monitor the Regional on gender equality Action Plans.
Gender Action Plans, with for IDA17 MTR
plans and corresponding
indicators tailored to
regional and country
gender context.
3.3. Develop a renewed 2014 Annual Achieved. World Bank Group Gender Strategy (FY16-
strategy for gender Meetings 23): “Gender Equality, Poverty Reduction and Inclusive
equality – with more Growth” was presented to the Board in 2015. A Board
ambitious targets, a update on the strategy implementation was conducted
new methodology for in March 2017.
measuring progress, and an
agenda for pushing ahead
on new frontiers with
transformational impacts.
Strengthen 3.4. Introduce a mechanism By IDA17 MTR Achieved. As part of the ICR review that went into
feedback loops to strengthen learning effect on July 1, 2017, specific questions have been
and reporting to and results through an introduced in the ICR requiring project teams to
enhance results assessment and rating of assess project activities addressing gender gaps and
and impact on gender performance at to identify lessons and innovative actions to address
gender equality. project exit, building on gender inequalities or issues that arose during project
the systematic tracking implementation.
of Implementation Status
and Results Reports (ISRs),
enhanced efforts on impact
evaluations and emerging
architecture associated
with learning reviews.
3.5. Strengthen knowledge Progress Report Achieved: The regional Gender Innovation Labs carry
of what does and does on Gender Equality out impact evaluations to generate rigorous evidence
not work to close gender for IDA17 MTR focusing on critical gender gaps. Labs are operational
gaps in IDA countries in three regions (AFR, SAR, and EAP). Impact
through monitoring and evaluations focused on reducing inequalities between
evaluation, including men and women in economic opportunity are also
impact evaluations on carried out in ECA, LAC, and MENA.
gender related issues,
more systematic tracking Achieved. In FY17, a new gender tag was launched
of gender results of in the operations portal to help track those projects
IDA operations using that seek to narrow a gender gap related to the four
sex-disaggregated core pillars of the strategy and have a clear results chain for
sector indicators and achieving and measuring results.
the expanded use of
beneficiary feedback The Gender CCSA continues to curate knowledge on
mechanisms. Impact Evaluation of gender interventions in WBG
projects.
To enhance accountability on results and outcomes,
the Gender CCSA monitors results reporting in IDA
operations though biannual ISR reviews.
A reform of the Core Sector Indicators, which were
used to collect and aggregate results data across
projects supported by the World Bank, was launched
in FY15 aimed to streamline, update, and make them fit
for purpose. As a result, a smaller set of 25 CRIs were
developed in close coordination with global practices.
CRIs were rolled out in FY17 and are now required for
all active and pipeline IDA operations where relevant,
regardless of financing source and instrument.
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Proposed Actions Target Date
3.6. Roll out statistical Progress Report Achieved. As of end of June of FY17, all the 21 IDA
activities to increase sex- on gender equality countries identified in FY15 have implemented
disaggregated data and for IDA17 MTR statistical activities.
gender statistical capacity
in at least 15 IDA countries.
CLIMATE CHANGE
Fully integrate 4.1. All IDA Country Progress Report Achieved. 30 CPFs and Country Engagement Notes
climate change Partnership Frameworks on climate change (CENs) reached Board approval in IDA17. The Climate
and disaster risk incorporate climate and for IDA17 MTR Change Group delivered a review of all 30 CPFs/CENs,
management disaster risk considerations out of which 29 incorporated climate and disaster
into Country into the analysis of the risks at decision stage. The only country product that
Partnership country’s development did not meet the IDA17 commitment at decision stage
Frameworks challenges and priorities was the Central African Republic, a an FCS, that only
and lending and, when agreed with delivered a CEN, rather than the full CPF.
and support the country, incorporate
development such considerations in the
of planning content of the programs
and investment and the results framework.
capacity
4.2. Screen all new IDA Progress Report Achieved. From July 2014 through June 2017, all
operations for short- and on climate change IDA operations delivered climate and disaster risk
long-term climate change for IDA17 MTR screening. Eleven of these projects were submitted to
and disaster risks and, the Board without being screened, but performed the
where risks exist, integrate screening retroactively.
appropriate resilience
measures.
4.3. Scale up support to Progress Report Achieved. There were 24 multi-sectoral plans (MSPs)
IDA countries to develop on climate change created out of the targeted 25 countries.
and implement country- for IDA17 MTR
led, multi-sectoral plans
(MSPs) and investments
for managing climate
and disaster risk in
development in at least 25
additional IDA countries.
Support efforts 4.4. Support IDA countries Progress Report Achieved. Under IDA17, the Bank has supported
to achieve to develop national on climate change countries in the preparation of national energy plans
Sustainable energy action plans and for IDA17 MTR and investment prospectuses that directly contribute
Energy for All investment prospectuses to both domestic energy access goals as well as the
to achieve the Sustainable Sustainable Energy for All and SDG7 goals of universal
Energy for All objective of access by 2030. Bank support also includes securing
universal access to energy financial resources, analytical studies, developing
by 2030. strategies/plans, reviewing laws and investments
in energy access, renewable energy and energy
efficiency. The success of these efforts has led to their
continuation in other countries under IDA18.
Strengthen 4.5. Enhance monitoring Achieved. Systematization of coding for climate co-
monitoring and by: (i) expanding climate benefits of ESW and non-lending TA began on July 1,
reporting of IDA finance coding system to 2014. A methodology to track and report disaster risk
resources cover tracking of ESW management co-benefits in investment operations
and non-lending technical has been developed and is now integrated into Bank
assistance that addresses operations.
climate change issues in
IDA countries; and (ii)
piloting a coding system to
measure the share of IDA
investments with disaster
risk management co-
benefits.
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IDA17 Retrospective: Maximizing Development Impact
Objective Recommendations/ Product/ Status of Implementation at the end of IDA17
Proposed Actions Target Date
FRAGILE AND CONFLICT-AFFECTED STATES
Address drivers 5.1. All Country Partnership Progress Report Achieved. FCV considerations were incorporated in all
of fragility and Frameworks in IDA FCSs on FCSs for IDA17 CPFs and CENs for IDA FCS during IDA17.
conflict and informed by analysis of MTR
respond to drivers of fragility and A Guidance Note on analyzing drivers of fragility and
opportunities conflict. conflict was prepared in 2016 to establish a more
to support systematic approach across countries and regions.
turnaround
5.2. Enhance synergies Progress Report Achieved. (Also see 1.3.) As of June 2017, there
countries and
through IDA-IFC-MIGA on FCSs for IDA17 were 11 JIPs at different stages of implementation or
build resilience in
joint implementation plans MTR preparation in FCSs or regions.
FCSs
in at least 10 IDA FCSs,
including joint frameworks
to measure results.
5.3. Undertake analytical Progress Report Achieved. (Also see 2.3.) The commitment has been
work on job creation in on FCSs for IDA17 fulfilled, with Jobs Diagnostics in FCS delivered and
FCSs, including by rolling MTR approved for 6 countries.
out a “jobs diagnostic
tool” in at least 5 FCSs
(see details on the “jobs
diagnostic tool” in the
policy commitments for
inclusive growth).
5.4. Propose revised Progress Report Achieved. (Also see 1.17.) The Bank’s new Procurement
procurement policy for on FCSs for IDA17 Framework that became effective in July 2016 provides
Board approval which MTR flexibility and simplification in regard to procurement
would incorporate in situations of urgent need of assistance or capacity
special considerations for constraints and greater delegation of procurement
situations of urgent need decisions to staff on the ground. The framework also
of assistance, or capacity provides for hands-on expanded implementation
constraints, including in support in low-capacity situations.
FCSs.
5.5. Implement gender- Progress Report Achieved. See 3.1.
related commitments on FCS for IDA17
on Country Partnership MTR
Frameworks and
operations (see gender
section).
Progress Report Achieved.
on FCSs for IDA17 Multi-sectoral Violence against Women and Girls
MTR Resource Guide was launched in December 2014.
• Gender-based violence is one of the four themes
of the Development Impact Evaluation unit in
the Development Research Group (DEC DIME)
evaluation series.
• Over US$100-million Gender Based Violence
program for the Great Lakes Region approved,
including a real-time evaluation component.
• No new operations in the pipeline, but pilot
operations in place in DRC and Côte d’Ivoire funded
through the State and Peacebuilding Fund.
5.6. Support efforts for
addressing gender-based
violence issues, and report
on progress at the IDA17
Mid-Term Review.
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Proposed Actions Target Date
Enhance 5.7. Implement Progress Report Achieved. Several IEG recommendations are reflected
feedback from management’s response to on FCSs for IDA17 in IDA17 policy commitments (see commitments 1.1, 1.3,
implementation the recommendations of MTR 2.3, 5.6, 5.9). IEG specific recommendations addressed
experience and the IEG evaluation of WBG include:
ensure more support to FCSs. • Achieved. Work with partners to review the
agile operational definition of FCS status. Reports on rethinking
policies and fragility were issued and a new differentiated
practices approach to FCV was approved as part of IDA18. At
the same time, a new set of metrics for assessing
fragility risks is under development.
• Achieved. Development of a realistic framework for
inclusive growth underpinned by an understanding
of the drivers of fragility. The Bank published a joint
‘integrated framework for employment creation in
FCV’ in October 2016.
• Achieved. Prepare tools and guidance notes to
support enhancement and use of country-systems
in IDA FCS. A ‘How to’ note was developed in June
2015 and a module on use of country systems
was added to the core course on FCS operational
practice. A series of FCV learning notes was
launched in October 2016 to provide guidance and
resources to Bank staff on how to engage in fragile
environments.
• Achieved. IFC/MIGA commitments include
increasing investments, incentives, and knowledge
notes on FCS, and investments under MIGA's
Conflict-Affected and Fragile Economies Facility.
5.8. Promote more Progress Report Achieved.
effective response in on FCSs for IDA17 • UN-WB partnership framework for crisis affected
FCSs by implementing the MTR situations (update from the 2008 partnership
new strategic and results framework) to strengthen institutional collaboration
framework for UN/WB at strategic and operational level. Work plan to
partnership in FCSs to operationalize the partnership framework is currently
strengthen collaboration under discussion with the UN.
among UN, WB, MDBs • The UN-WB Partnership Trust Fund supported:
and other development the UN-WB joint Humanitarian-Development-
partners, including through Peace Initiative to improve country level strategic
the New Deal. collaboration through joint analysis, assessment and
planning in at least 5 country situations; seven pilot
projects (CAR, Cameroon, Guinea Bissau, Somalia,
Sudan, Pakistan and Yemen); and stocktaking of
lessons learned on the pilots.
• Strengthened strategic dialogue at senior
management level through periodic UN-WB
meetings/retreats at Assistant Secretary General/
Senior Director level.
• Conducted revisions to Recovery and Peacebuilding
Assessment with UN and EU to increase the
effectiveness and relevance of the joint assessment
tool.
• Portfolio review by independent consultants
of UN WB Trust Fund delivered and published.
Joint management response to findings and
recommendations by UN-WB submitted to donors.
• Continued to strengthen partnerships with MDBs on
FCV agenda, notably on joint diagnostics, knowledge
and learning (joint trainings).
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Objective Recommendations/ Product/ Status of Implementation at the end of IDA17
Proposed Actions Target Date
5.9. Strengthen knowledge Progress Report Achieved.
of what does and does on FCSs for IDA17 Impact Evaluations: (1) Launched Evidence for Peace
not work in IDA FCSs MTR (E4P) initiative to evaluate FCV programming; (2)
through monitoring and Knowledge ‘gap map’ to identify critical evaluation
evaluation, including questions developed and published; (3) Four thematic
impact evaluations, papers (jobs for at-risk youth, public governance,
tracking of results of IDA gender-based violence, urban crime) to broaden the
operations and expanded FCV evidence have been finalized; (4) DEC/DIME
use of beneficiary feedback supported the design and implementation of 35 impact
mechanisms. evaluations in 23 countries including 13 FCSs.
Tracking results in IDA operations: (1) FCV Monitoring
System regularly tracking performance indicators
on financing, strategy, operations, knowledge,
partnerships, and human resources in FCSs. (2) New
Standard Report Tool allows disaggregation by FCS
status; (3) FCV project teams across all Regions/
Global Practices provided with just-in-time advice on
operational issues; (4) FCV-G finalized practitioner’s
guide on measuring progress in FCV settings.
5.10. Implement OP/BP Achieved. OP/BP 10.00 was implemented with training
10.00 which incorporates a provided to staff on new Procurement Framework,
differentiated approach to working with the UN and existing flexibilities.
investment lending in FCSs.
Enhance FCS 5.1. 1 Implement the revised Review Achieved. The IDA resources allocation framework
financing by IDA resource allocation implementation changes were effected as follows: (i) exceptional
revising the framework for FCSs to experience with allocation for countries facing “turn around” situations
allocation enhance targeting of IDA’s new allocation (3 new countries) and 2 countries already supported,
framework exceptional support and regime for FCSs received funding under the Turn-Around Regime
to enhance financial engagement in at IDA17 MTR (TAR); (ii) change in the Country Performance Rating
targeting of these countries as follows: and propose exponent in the regular PBA formula from 5 to 4; (iii)
IDA’s exceptional (i) implement exceptional adjustments if increase in the minimum base allocation from SDR3
support and allocation regime for necessary. million to SDR4 million per year and iv) extension of
financial countries facing “turn- support to eight FCSs eligible for support under the
engagement around” situations; former post-conflict and re-engaging country regimes).
in FCSs. Both The implementation of these changes resulted in an
would be (ii) change the Country increase in core IDA17 allocations for FCSs of around
achieved in a Performance Rating 50 percent relative to what these countries would have
way that reflects exponent in the regular received absent these changes
the current PBA formula from 5 to 4;
understanding
of fragility and (iii) increase the minimum
conflict while base allocation from SDR3
preserving the million to SDR4 million per
principle of year.
performance
orientation. (iv) extend, on a case-by-
case basis, the current
post-conflict and re-
engaging countries, and
align the support to these
countries with that under
the Turn-Around Regime.
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IDA17 Retrospective: Maximizing Development Impact
ANNEX 2: SELECT IDA TERMINOLOGY
Brief Description Key Sources
GNI per capita GNI per capita (formerly GNP per capita) is the Gross National Income (GNI) For more information,
of a country, divided by its mid-year population. GNI per capita, converted see World Development
to US dollars using the World Bank’s Atlas method, is IDA’s basic indicator Indicators, 2017
or proxy for the poverty level of a country. Access to IDA resources
is determined primarily on the basis of a country’s GNI per capita and
creditworthiness.
Operational IDA’s operational cutoff is the per capita GNI threshold above which countries For historical thresholds
Cutoff would not normally receive IDA resources. IDA has, however, exercised in each FY, see
flexibility in the administration of this threshold to support some small island (former) OP 3.10,
economies or countries with limited or no access to IBRD lending–e.g., Gap IBRD/IDA Countries:
Countries (see below). The IDA operational cutoff stood at US$1,165 at the Per Capita Incomes,
end of IDA17. Lending Eligibility, and
Repayment Terms,
Annex D (updated in
each FY).
Creditworthiness A country’s creditworthiness is its ability to service outstanding and projected
external debt at market interest rates over the long-term. Creditworthiness
considerations have always guided IDA lending policies, since the Articles of
Agreement limit IDA from providing assistance if financing is available from
private sources on terms which are reasonable for the recipients or could be
provided by a loan of the type made by a Bank.
Gap Countries These are IDA-eligible countries with per capita incomes above IDA’s For IDA17 definitions,
operational cutoff for more than two consecutive years but not determined as see “OP3.10 annex D”.
creditworthy for IBRD lending. Lending terms to Gap Countries are the same For the most recent
as the terms that IDA offers to Blend Countries (see below). definitions, see Bank
Policy “Financial Terms
Blend Countries These are countries that are eligible to borrow from IDA as well as the IBRD. and Conditions of Bank
Financing” (Catalogue
No. OPS5.09-POL.165).
Small Island These are IDA-eligible small islands with a population of 1.5 million people
Note however, that
Economies or less. Under the Small Island Economies Exception adopted in 1985, IDA
these definitions
extends favorable lending terms to these countries in consideration of their
now reflect changes
vulnerabilities–even if a country’s per capita GNI exceeds the IDA operational
introduced in IDA18.
cutoff.
Fragile and Countries in “Fragile Situations” include countries or territories with (i) a For details, see http://
Conflict-Affected harmonized Country Policy and Institutional Assessment (CPIA) rating of 3.2 www.worldbank.
Situations (FCSs) or less, and/or (ii) the presence of a UN and/or regional peace-keeping or org/en/topic/
political/peace-building mission during the last three years. The list includes fragilityconflictviolence/
only IDA eligible countries and non-member or inactive territories/countries brief/harmonized-list-of-
without CPIA data. It excludes IBRD countries (for which the CPIA scores fragile-situations
are not publicly disclosed) unless there is a presence of a peace-keeping or
political/peacebuilding mission, in which case, the country will be listed on
the harmonized list with the exclusion of its CPIA score. The ‘harmonization’
comes from averaging the WBG CPIA scores with those of relevant regional
development banks’ (African Development Bank and Asian Development
Bank) ratings to arrive at a harmonized rating of 3.2 or lower. Political and
Peace-Building Missions are specifically defined as the presence of a UN and/
or regional (for example: AU, EU, NATO) peace-building and political mission
in this country in the last three years.
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IDA17 Retrospective: Maximizing Development Impact
Brief Description Key Sources
IDA Graduation Graduation from IDA is a point when a country stops being eligible for new For more details, see
commitments of concessional financing from IDA. The graduation process http://documents.
usually includes the following steps: (a) IDA-only non-gap to IDA-only gap: worldbank.org/curated/
countries that have been above the IDA operational cutoff for more than two en/605191468191042391/
years but are not yet deemed creditworthy for IBRD financing are classified Review-of-IDA-s-
as IDA-only “gap” countries; (b) IDA-only non-gap or IDA-only gap to blend: graduation-policy
a positive creditworthy assessment by IBRD leads to reclassification of a
country from IDA-only non-gap or IDA-only gap status to blend status (IDA/
IBRD); and (c) Blend to IBRD-only: the IDA graduation process concludes
with a reclassification from blend status to IBRD-only borrower. The IDA
decision to graduate a country to IBRD-only status is based on an assessment
of the country’s macroeconomic prospects, risk of debt distress, vulnerability
to shocks, and levels of poverty and social indicators.
Regular Terms Effective July 1, 2014 (the start of IDA17), lending terms for IDA concessional For details, see Bank
credits were adjusted, with two sets of terms applicable to IDA-only non-gap Directive “Financial
countries and small island economies (see above). Small island economies Terms and Conditions
continued to receive concessional credits on existing terms: 40-year maturity, of Bank Financing”,
with a 10-year grace period, with principal repayable at 2 percent per annum Annex 2, May 4,
for years 11-20, and 4 percent per annum for years 21-40. Concessional credits 2017 (Catalogue No.
to IDA-only non-gap countries were subject to new terms: 38-year maturity, OPS5.09-DIR.119).
with a 6-year grace period, with principal repayable at 3.125 percent per
annum for years 7-38.
Blend Terms Effective July 1, 2011, existing blend terms and hardened terms92 were
consolidated into one set of blend terms: 25-year maturity, with a 5-year
grace period, with principal repayable at 3.3 percent for years 6-15 and 6.7
percent per annum for years 16-25, and a 1.25 interest charge. These terms
applied to concessional credits to blend countries (excluding small island
economies) and gap countries through June 30, 2017. These terms were
adjusted under IDA18.
Hard Terms Effective from July 1, 2011 through June 30, 2017, creditworthy blend countries
excluding small island economies were eligible for hard-term credits, in
addition to their performance-based allocations (see below). Hard-term
credits had 25-year maturity, with a 5-year grace period, with principal
repayable at 3.3 percent per annum for years 6-15 and 6.7 percent per annum
for years 16-25. Hard-terms credits were discontinued at the end of IDA17.
Acceleration IDA credits include an acceleration clause, providing for doubling of principal
Clause payments from creditworthy borrowers where per capita income remains
above eligibility thresholds. IDA credits on hardened terms93 (approved during
IDA13-IDA15) are exempt from the accelerated repayment provisions. The
acceleration clause has been triggered on eligible credits when countries
graduate to IBRD-only status.
Service Charge For every concessional credit, a service charge is payable semi-annually on Bank Policy “Financial
the principal amount withdrawn and outstanding. Management adjusts the Terms and Conditions
service charge each quarter to account for the difference in notional interest of Bank Financing”
rates between the relevant currency and the SDR, subject to a floor of 0.75 (Catalogue No.
percent. During IDA17, service charges remained at 0.75 percent. OPS5.09-POL.165)
Commitment For every concessional credit and grant, a commitment charge is payable
Charge semi-annually on the undisbursed amount, and starts to accrue 60 days
after the Financing Agreement is signed. Each year, the Executive Directors
approve the level of commitment charge on concessional credits and grants
that would apply for that fiscal year, not to exceed 0.50 percent of the
undisbursed balance of the concessional credits and grants. During IDA17, the
commitment charge remained at 0 percent.
92 From July 1, 2002 through June 30, 2011 (i.e., during IDA13, IDA14, and IDA15), concessional credits to countries whose GNI per capita has
been above the IDA operational cutoff for more than two consecutive years were subject to hardened terms: 20-year maturity, with a 10-
year grace period, with principal repayable at 10 percent per annum for years 11-20.
93 See previous footnote.
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IDA17 Retrospective: Maximizing Development Impact
Brief Description Key Sources
Performance- The PBA system is the primary basis for allocating IDA resources during Additions to IDA
Based Allocation a replenishment. It considers countries’ needs and performance utilizing Resources: Seventeenth
(PBA) a multi-stage process to allocate resources, including: (i) a minimum base Replenishment.
allocation provided to all IDA-eligible countries to address minimum financing “IDA17: Maximizing
requirements; (ii) a formula-based gross PBA allocation; (iii) a grant allocation Development Impact.”
framework in which the terms of financing available to each country are Approved by the
determined annually based on its risk of debt distress; and, (iv) an allocation Executive Directors of
reduction and re-distribution process associated with the Multilateral Debt IDA on March 25, 2014.
Relief Initiative (MDRI) for those countries receiving MDRI debt relief. Country
performance is the main determinant of PBA allocations, measured by the
Country Performance Rating (CPR) – which in turn factors in CPIA ratings
and portfolio performance ratings (see below). Country needs are assessed
based on relative poverty (using GNI per capita as a proxy) and population.
In addition to PBA, under IDA17, exceptional allocations were provided to
post-conflict and re-engaging countries, primarily based on Post-Conflict
Performance Indicators (PCPIs) (see below). The minimum base allocation as
well as the CPR exponent were adjusted in IDA17 and again in IDA18.
Country Policy The CPIA assesses each IDA country’s policy and institutional framework.
and Institutional The system has evolved over time and now comprises 16 criteria grouped
Assessment into four clusters: (A) economic management; (B) structural policies; (C)
(CPIA) policies for social inclusion and equity; and (D) public sector management and
institutions.
Country The CPR for each IDA member is computed annually using its CPIA (see
Performance above) and the country portfolio performance rating which captures the
Rating (CPR) health of IDA’s projects and programs in the country (as measured by the
percentage of problem projects).
Post-Conflict During IDA13, IDA established an allocation framework designed to address For details, see
Progress the special circumstances of post-conflict countries by providing them with http://siteresources.
Indicators (PCPIs) access to additional IDA resources, for a limited period, over and above what worldbank.org/
they would receive based on the regular PBA formula. The performance PROJECTS/Resources/
of IDA countries eligible for IDA post-conflict allocations is measured by 40940-
PCPIs (in lieu of CPIAs) which assess the quality of a country’s policy and 1404407793868
institutional framework to support a successful transition and recovery from /9611975-1404407810
conflict, to foster sustainable growth, poverty reduction, and the effective use 503/2013PCPIcriteria.
of development assistance. PCPIs are also used for assessing the performance pdf
of countries that are re-engaging with IDA.
Replenishment Replenishment is the process of periodic review of IDA’s model with the
objective of ensuring adequacy of IDA resources and authorization of
additional subscriptions for a future period (normally 3 years). Under IDA’s
Articles, replenishments are required to be approved by IDA’s Board of
Governors by a two-thirds majority of the total voting power.
IDA’s commitment authority is the total value of resources available during
Commitment a replenishment for commitments of credits and grants. It includes donor
Authority contributions, internal resources, IBRD net income transfers, IFC grants,
Concessional Partner Loans, and other resources. Donor contributions
supporting IDA17 commitment authority were provided as part of the
IDA17 replenishment itself as well as under the MDRI replenishment. The
commitment authority level is monitored periodically to ensure that funding
is available to meet commitments and to provide early warning signs of any
problems in terms of resource availability.
Special Drawing The value of the SDR in U.S. dollar terms is calculated daily as the sum of For details, see
Rights (SDR) the values in US dollars of specific amounts of five currencies – the Euro, https://www.imf.org/en/
Japanese Yen, Pound Sterling, US dollar and Chinese renminbi94 – based on About/Factsheets/
exchange rates quoted at noon at the London market. The value of the SDR is Sheets/2016/08/01/14
posted daily on the IMF website. /51/Special-Drawing-
Right-SDR
94 Chinese renminbi was determined to be a freely usable currency and included into the SDR basket starting from October 1, 2016.
107
108
109
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IDA17 Retrospective: Maximizing Development Impact
ANNEX 3: LIST OF IDA17 ELIGIBLE COUNTRIES
Africa Africa (continued) Europe and Central Asia (continued)
Benin Sierra Leone Moldova b/
Burkina Faso Somalia c/
Tajikistan
Burundi Sudan c/
Uzbekistan b/
Cabo Verde b/ South Sudan
Cameroon b/
Tanzania Latin America and the Caribbean
Central African Republic Togo Bolivia b/
Chad Uganda Dominica b/
Comoros Zambia Grenada b/
Congo, Dem. Rep. Zimbabwe ,
b/ c/
Guyana
Congo, Republic b/
Haiti
Côte d’Ivoire East Asia and the Pacific Honduras
Eritrea c/ Cambodia Nicaragua
Ethiopia Kiribati St Lucia b/
Gambia Laos, People's Democratic Republic St Vincent and the Grenadines b/
Ghana Marshall Islands
Guinea Micronesia, Fed. Sts. Of Middle East and North Africa
Guinea-Bissau Mongolia b/
Djibouti
Kenya Myanmar Syrian Arab Republic d/
Lesotho Papua New Guinea b/
Yemen, Republic
Liberia Samoa
Madagascar Solomon Islands South Asia
Malawi Timor-Leste b/
Afghanistan
Mali Tonga Bangladesh
Mauritania Tuvalu Bhutan
Mozambique Vanuatu Maldives
Niger Vietnam b/
Nepal
Nigeria b/
Pakistan b/
Rwanda Europe and Central Asia Sri Lanka b/
Sao Tome and Principe Kosovo
Senegal Kyrgyz Republic
a/ There are 78 countries on this list: of these, 60 are IDA-only countries and 18 are blend countries. One country, India, is excluded (graduated at
the end of IDA16 cycle and received transitional support from IDA during IDA17 period).
b/ Blend Countries.
c/ Non-accrual status.
d/ The Syrian Arab Republic reclassified from IBRD to IDA-only, effective September 29, 2016.
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IDA17 Retrospective: Maximizing Development Impact
ANNEX 4: LIST OF FCS COUNTRIES DURING IDA17
Region Country FY15 FY16 FY17
Region Country FY15 FY16 FY17
EAP Micronesia, Federated Y Y Y
SAR Afghanistan Y Y Y
States of
AFR Angola
EAP Myanmar Y Y Y
AFR Burundi Y Y Y
AFR Mozambique
EAP Cambodia
SAR Nepal
AFR Cameroon
AFR Niger
AFR Central African Republic Y Y Y
AFR Nigeria
AFR Chad Y Y Y
EAP Papua New Guinea Y
AFR Comoros Y Y Y
AFR Rwanda
AFR Congo, Democratic Y Y Y
AFR Sao Tome and Principe
Republic of
AFR Sierra Leone Y Y Y
AFR Congo, Republic of
EAP Solomon Islands Y Y Y
AFR Côte d’Ivoire Y Y Y
AFR Somalia Y Y Y
MNA Djibouti Y
AFR South Sudan Y Y Y
LCR Dominica
AFR Sudan Y Y Y
AFR Eritrea Y Y Y
MNA Syria Y
AFR Gambia, The Y Y
ECA Tajikistan
AFR Guinea
AFR Tanzania
AFR Guinea-Bissau Y Y Y
EAP Timor-Leste Y Y
LCR Haiti Y Y Y
AFR Togo Y Y Y
EAP Kiribati Y Y Y
EAP Tonga
ECA Kosovo Y Y Y
EAP Tuvalu Y Y Y
EAP Lao People’s Democratic
Republic ECA Uzbekistan
AFR Liberia Y Y Y EAP Vanuatu
AFR Madagascar Y Y Y MNA Yemen, Republic of Y Y Y
AFR Malawi AFR Zimbabwe Y Y Y
AFR Mali Y Y Y TOTAL 28 29 31
IDA
EAP Marshall Islands Y Y Y
AFR Mauritania
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IDA17 Retrospective: Maximizing Development Impact
ANNEX 5: IDA17 FINANCING FRAMEWORK AND DONOR
CONTRIBUTIONS TABLE
At the conclusion of the IDA17 Replenishment investment income generated by acceleration of
consultations in December 2013, donors agreed a payments, and taking into consideration the foreign
financing framework with an expected commitment currency adjustments after hedging of these
authority of SDR34.6 billion (US$52.1 billion). At transfers into SDRs, the resulting total contribution
closure in June 2017, the revised IDA17 financing is SDR1.8 billion (equivalent to US$2.7 billion).
framework amounted to SDR 37.9 billion (US$57.1
billion), reflecting: • Additional resources freed-up through a more
efficient use of IDA’s liquidity that replenished the
• Revised partner contributions in the amount CRW by an amount of US$900 million, financed
of SDR17.5 billion (US$26.3 billion), including the SUF for an additional US$3.9 billion and made
additional partner contributions received after the available US$200 million for exceptional support
IDA17 resolution was adopted and adjustments for Lebanon and Jordan for the remainder of the
for hedging of national currencies. Also, partner IDA17 period.
contributions of SDR3.0 billion (US$4.5 billion)
were pledged to cover, as agreed, IDA’s MDRI debt Out of the SDR37.9 billion, SDR37.4 billion became
relief costs up to the end of the IDA17 disbursement available for commitments. This amount included
period (FY25). partner contributions to IDA17 of SDR16.9 billion
based on receipt of unqualified commitments and
• Revised IDA17 internal resources in the amount contributions to the MDRI of SDR2.8 billion under the
of SDR8.3 billion (US$12.5 billion). This reflects a separate MDRI replenishment, as well as SDR 8.3 billion
reduction from the agreed framework due to the of internal resources. The shortfall for IDA17 totaled
use of IDA17 internal resources in the amount of SDR700 million and was bridged by a transfer of
SDR 1.2 billion to cover a temporary funding gap internal resources from IDA18 to IDA17.112 Furthermore,
at the end of the IDA16 period.110 Internal resources it included contributions from IBRD and IFC of SDR
include: (i) accelerating credit repayments through 1.7 billion and the release of carry forward amounts of
exercising the contractual acceleration clause in SDR 1.7 billion. As per the IDA17 agreement, unused
qualifying IDA credits (SDR1.5 billion or US$2.3 Arrears Clearance funds from IDA17 totaling SDR800
billion); (ii) voluntary prepayments from Azerbaijan million were carried forward into IDA18. Against these
and Indonesia (SDR400 million or US$600 resources made available in FY15, FY16, and FY17, IDA
million); (iii) front-loading the use of reflows from a committed a total of SDR 37.4 billion in credits, grants,
hardening of the lending terms of IDA’s borrowers and guarantees as of June 30, 2017, the highest
(SDR800 million or US$1.2 billion); and front- ever commitment levels for an IDA replenishment
loading of internal resources due to receipt of period to date. In addition, cancellations eligible for
Concessional Partner Loans. recommitment amounted to SDR1.1 billion.113 This
represented an 18 percent rise in nominal terms over
• Revised World Bank Group transfers in the amount IDA16 commitments of SDR31.7 billion (US$47.6
of SDR1.7 billion (US$2.6 billion). IBRD and IFC billion114). See table A5.1 for an overview of the IDA17
contributed US$1.8 billion111 and US$800 million Available Commitment Authority.
to IDA17, respectively. When adding projected
110 Approved by the Board of Executive Directors in June 2014.
111 IBRD’s agreed indicative net income transfer amount of US$1.95 billion was adjusted downward in FY17 by US$168 million to reflect the
supplemental contribution made by Austria to IDA17.
112 See “Review of IDA17 Commitment Authority Framework (FY15-FY17) and Transition from IDA17 to IDA18”, IDA/R2017-0239, June 16,
2017.
113 Total IDA17 commitments amount to SDR38.5 billion (US$58 billion) when valued at the IDA17 replenishment exchange rate of 1.50718
USD/SDR and including guarantees at 25 percent of the face value. Total commitments amount to US$55 billion when valued at the
exchange rate at the time of project approval and including guarantees at 100 percent of the face value.
114 Total IDA16 commitments amount to SDR31.7 billion (US$47.6 billion) when valued at the IDA16 replenishment exchange rate of 1.502330
USD/SDR and including guarantees at 25 percent of the face value. Total commitments amount to US$53.3 billion when valued at the
exchange rate at the time of project approval and including guarantees at 100 percent of the face value.
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Table A5.1. IDA17 Commitment Authority Status
(SDR billion, as of June 30, 2017)
Source of Funds Agreed Revised Frameworka/ Available CA
I. TOTAL PARTNER GRANT RESOURCES 20.3 20.5
Basic grant contributions (incl CPL grant element & 11 to 9 accel) 15.1 15.1
Supplemental contributions (incl CPL grant element) 0.1 0.2
Compensation for HIPC (FY15-17) 1.5 1.5
Financing of arrears clearance operations 0.4 0.4
Compensation for grant principal forgone 0.3 0.3
Total Partner New Contributions 17.3 17.5 16.9
Compensation for MDRI (FY23-25) 3.0 3.0 2.8
II. TOTAL INTERNAL RESOURCES 11.6 11.7 10.7
Internal Resources of IDA 9.5 8.3 8.3
Internal Resources of IDA borrowed from IDA18 to cover partner 0.7d/
shortfall
IBRD transfers 1.4 1.2 1.2
IFC transfers 0.7 0.5 0.5
Total Transfers 2.1 1.7 1.7
Carry forward of unused IDA16 funds and other resources 1.7 1.7
IDA17 arrears clearance funds carried forward to IDA18 (0.8)e/
III. CONCESSIONAL PARTNER LOANS 2.3 2.5 2.5
IV. Increase to IDA17 CA by a revision to IDA's Liquidity 3.2 3.6f/
TOTAL IDA17 COMMITMENT AUTHORITY FRAMEWORK 34.6 37.9 37.4
V. Eligible cancellations available for recommitments g/
1.1
TOTAL IDA17 COMMITMENT AUTHORITY FRAMEWORK INCLUDING 38.5
CANCELLATIONS
Uses of Funds
TOTAL USES OF FUNDS FOR COMMITMENTS, GRANTS, AND 38.5
GUARANTEES
REMAINING AVAILABLE COMMITMENT AUTHORITY -
Carry forward from past replenishments due to partner arrears h/
0.4
Carry forward due to partner arrears and financing gap of the MDRI i/ 1.4
Notes: Amounts may not total due to rounding.
a/ As of June 30, 2017. All non-SDR amounts except for MDRI compensation are valued at the respective hedge exchange rates under IDA’s
foreign exchange hedging framework.
b/ Outstanding IDA17 Instruments of Commitment (IoCs) in the amount of SDR0.5 billion are from Argentina (US$7 million), Mexico
(MXN1.27 billion), Portugal (EUR10 million), as well as a partially qualified IoC (18 percent) from the US. This amount is carried forward to
IDA18 as a memo item and is released when IoCs are received by IDA. The US has made a partial payment towards its IDA17 obligation in
July 2017. The remaining outstanding obligation is US$283 million (7.3 percent of its total commitment).
c/ MDRI compensation shortfall of SDR0.2 billion is related to IoCs remaining qualified (Belgium, Germany, Greece, Hungary, Italy, Japan,
New Zealand, Spain, and the US), IoC outstanding (Cyprus), and IoC not being extended (“IoC Shortfall”; Slovak Republic) to cover the full
period until FY25. The amount is carried forward to IDA18 as a memo item.
d/ As approved by the Executive Directors in June 2017, IDA used internal resources of SDR700 million to cover the funding gap resulting
from the outstanding partner commitments at the end of the IDA17 period. See “Review of IDA17 Commitment Authority Framework
(FY15-FY17) and Transition from IDA17 to IDA18”, IDA/R2017-0239, June 16, 2017.
e/ As approved by the Executive Directors in June 2017, unused IDA17 Arrears Clearance resources of SDR800 million were carried forward
into IDA18. See “Review of IDA17 Commitment Authority Framework (FY15-FY17) and Transition from IDA17 to IDA18”, IDA/R2017-0239,
June 16, 2017.
f/ Represents a US$5-billion increase to IDA17 commitment authority resulting from a revision to IDA’s liquidity policy.
g/ Total cancelled funds available for recommitments amounted to SDR1.2 billion, of which SDR1.1 billion was recommitted as of June 30, 2017.
h/ Consists of unpaid contributions by the United States to IDA12, IDA13, and IDA14 (SDR200 million), and corresponding pro-rata
contribution shares withheld by Austria, France, and Germany (SDR100 million); the outstanding IDA16 IoCs from Mexico, and Portugal as
well as a partially qualified IoC (2.4 percent) from the US. In July 2017, the US fully paid its IDA16 obligation.
i/ Consists of the MDRI compensation shortfall of SDR1.0 billion for FY07-25 and qualified MDRI IoCs of SDR0.4 billion that cover IDA16
disbursement period until FY22.
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DEBT RELIEF UNDER HIPC AND MDRI
IDA is currently estimated to provide a total of To finance IDA’s forgone credit reflows due to
SDR33.9 billion (US$48.8 billion) in debt relief under debt relief, partners established the separate MDRI
both the HIPC Initiative and the MDRI (table A5.2). replenishment spanning four decades (FY07-44)
Partners have committed to finance IDA’s debt relief and pledged to compensate IDA on a ‘dollar-for-
costs to ensure the financial additionality of debt relief dollar’ basis. The financing required to compensate
at the recipient country level. As of June 30, 2017, IDA for foregone reflows due to the implementation
irrevocable debt relief of SDR33.3 billion (US$48.0 of the MDRI up to the end of the IDA17 disbursement
billion) had been provided by IDA to the 36 countries period (FY07-22) is SDR12.7 billion (table A5.3). Of
that have reached the completion point under the HIPC this amount, SDR7.5 billion was made available for
Initiative. The amount represents about 98 percent of commitment authority in IDA17 after taking into
the total debt relief estimated to be provided by IDA. account partner financing released under previous
Of this amount, an estimated SDR22.9 billion (US$32.6 replenishments (SDR2.8 billion under IDA14, SDR3.2
billion) has been provided under the MDRI and the billion under IDA15, and SDR2.2 billion under IDA16).
balance of SDR10.4 billion (US$15.4 billion) under the As of June 30, 2017, partners had provided unqualified,
HIPC Initiative. The remaining three HIPC countries will firm financing commitments representing 58.7 percent
benefit from full debt relief under the HIPC Initiative of the IDA17 MDRI costs through the end of the
and the MDRI upon reaching their completion points. IDA17 disbursement horizon (FY25).115 Another 33.6
percent of forgone credit reflows over that horizon
Partner financing for HIPC-related costs under IDA17 are covered by qualified financing commitments,
fell short by SDR28 million at the end of the IDA17 bringing total partner financing commitments to 92.3
period. Partners financed SDR1.16 billion during the percent of MDRI costs through FY25 (the end of the
IDA14 commitment period, SDR1.16 billion during IDA17 disbursement horizon). The MDRI financing
IDA15, SDR1.32 billion during IDA16 and SDR1.47 billion gap amounts to SDR1.0 billion through the end of
during IDA17 as of June 30, 2017, including SDR38 the IDA17 disbursement period (FY25). A number of
million of IDA16 arrears paid during IDA17. Four partners have scaled up their MDRI contributions to
partners have experienced delays in providing fully reduce the financing gap to the current 7.7 percent
unqualified commitments during the IDA17 period, level. However, additional partner compensation will
leaving a SDR28 million shortfall, which was covered be required to fully eliminate this financing gap.
temporarily by IDA’s internal resources.
Table A5.2. Estimated Total Debt Relief by IDA (FY1996-2044)
(SDR billion equivalents, as of June 30, 2017)
Total HIPC Debt Relief MDRI Debt Relief HIPC + MDRI Costs
Debt Relief Total HIPC Delivered To be To be Delivered To be financed by
by IDA (A+B) pre-July Delivered (C) Donors
(A+B+C) 2005 (A) post July 1, Post July 1, 2005
2005 (B)a/ (B+C)
Completion Point 33.3 10.4 2.3 8.1 22.9 31.0
Countries (36)
Pre-Decision Point 0.6 0.1 - 0.1 0.5 0.6
Countries (3)
Total (39) 33.9 10.5 2.3 8.2 23.3 31.6
Notes:
Based on applicable IDA14, MDRI, IDA15, IDA16, IDA17, and IDA18 foreign exchange reference rates.
Totals may not add up due to rounding.
HIPC Debt Relief provided to IDA prior to June 30, 2005 of SDR2.3 billion (US$3.5 billion) was financed primarily through IBRD
net income transfers to the HIPC Trust Fund complemented by some bilateral partner financing
115 An unqualified commitment under the MDRI is one where the Contributing Member has obtained the necessary approvals and agrees to
pay without qualification; whereas a qualified commitment is subject to necessary parliamentary or legislative approvals. See para 2 in
“Additions to Resources: Financing the Multilateral Debt Relief Initiative,” Resolution No. 211 adopted on April 21, 2006.
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Table A5.3. MDRI Financing Summary – Instruments of Commitment (IoCs) Received
as of June 30, 2017, under IDA17 MDRI cost estimatesa/ (SDR million)
Until End of IDA17 Remaining Years Total MDRI Costs
disbursement period
Financing Received from FY07-25 FY26-44 FY07-44
IDA Donors
SDRm in% SDRm in% SDRm in%
Unqualified Financing 7,550.7 59.2% 1,037 9.6% 8,588 36.4%
Qualified Financing 4,209.7 33.0% 8,288 76.4% 12,498 53.0%
Sub-Total IOCs Received 11,760.4 92.3% 9,325 86.0% 21,085 89.4%
IOCs Not Received 2 0.0% 2 0.0% 5 0.0%
IOC Shortfall b/
1 0.0% 648 6.0% 648 2.7%
Compensation shorfall 983 7.7% 868 8.0% 1,851 7.8%
Sub-Total To Be Committed 986 7.7% 1,518 14.0% 2,504 10.6%
Total 12,746.8 100.0% 10,843 100.0% 23,589 100.0%
Note 1: Amounts exclude surplus resulting from financing received higher than partners’ target contribution under the current cost structure.
Note 2: Amounts may not total due to rounding.
a/ Based on IDA17 MDRI cost estimates as of June 30, 2013 using applicable replenishment foreign exchange reference rates for IDA14,
MDRI, IDA15, IDA16 and IDA17.
b/ Shortfall for which partners need to provide unqualified and qualified commitments for each period from FY07 to FY44.
TERMS OF IDA ASSISTANCE
IDA’s lending terms were adjusted in IDA17 to reflect the This allowed IDA to recycle resources more quickly
evolving economic capabilities of IDA’s clients. In light and thus increase its internal resources available for
of the improved economic and financial circumstances commitment. All small island economies continued to
in many IDA borrowers, IDA shortened the maturity receive assistance of regular IDA credits on old terms
for regular credits for IDA-only countries from 40 to (40 years maturity; 10 years grace period). To better
38 years and adopted a straight-line amortization of address the need for a smooth transition for graduating
principal. The option to revise the lending terms for countries, IDA provided transitional support for India
IDA-only countries (i) reflected the improvements during IDA17 on terms similar to those of the IBRD.
in the risk of debt distress of low income countries In March 2016, IDA’s Board of Executive Directors
and the impact of the hardened terms on their debt approved establishment of the SUF in the amount of
sustainability risk ratings at the time, (ii) ensured that US$3.9 billion. This amount was made available to IDA
IDA terms remain highly concessional relative to other countries on non-concessional terms, similar to those
multilateral development banks (MDBs), (iii) took into from the IBRD. These resources were additional to the
account the impact of possible actions by other MDBs, regular concessional allocations (core and non-core)
and (iv) retained grant allocations for those countries to IDA-eligible countries. Table A5.4 summarizes IDA17
assessed at high or moderate risk of debt distress. lending terms, including these changes.
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Table A5.4. IDA17 Lending Terms by Product Type
(effective from July 1, 2014 through June 30, 2017)
Product Maturity b/ Grace Principal Repayments Acceleration Commitment Service Interest
Period Clause c/ Charge d/ Charge for rate
Credits e/
Year 7 - 20 Year 21 - 38
Grants a/
NA NA NA NA NA 0.00% NA NA
Regular f/
38 6 3.125% 3.125% Yes 0.00% 0.75% NA
Blend g/
25 5 3.3% h/
6.7% i/
Yes 0.00% 0.75% 1.25%
Hard Term 25 5 3.3% h/
6.7% i/ Yes 0.00% 0.75% 1.83%
Lending j/ k/
Partial Risk NA NA NA NA NA 0.00% l/ 0.75% m/ NA
Guarantee
Transitional 25 5 5% n/ 5% o/ NA Fixed or floating rate terms
Support Pricing linked to IBRD's fixed spread
loans
Scale-up 24 5 5% p/ 5.5% q/ NA Fixed or floating rate terms
Facility Pricing linked to IBRD's fixed spread
Option 1 loans
Scale-up 27 8 5% r/ 5.5% s/ NA Fixed or floating rate terms
Facility Pricing linked to IBRD's fixed spread
Option 2 loans
Scale-up 30 9 4.7% 4.9% NA Fixed or floating rate terms
Facility Pricing linked to IBRD's fixed spread
Option 3 loans
Notes:
a/ Countries with a high risk of debt distress (‘red-light countries’) receive 100 percent of their allocation in the form of grants and those with
a moderate risk of debt distress (‘yellow-light countries’) receive 50 percent in the form of grants. Grants are not subject to repayment or
service charges, but carry a 20 percent volume discount on the country’s allocation.
b/ The maturity of all IDA credits approved by the Board through June 30, 1987, is 50 years. The maturity of IDA credits approved by the
Board between June 30, 1987, and June 30, 2011, are 35 or 40 years. The maturity of credits approved between July 1, 2011, and June 30,
2014, are 25 or 40 years.
c/ IDA credits include an acceleration clause, providing for doubling of principal payments from creditworthy borrowers where per capita
income remains above eligibility thresholds. IDA credits on hardened terms (approved during IDA13-IDA15) are exempt from the
accelerated repayment provisions.
d/ IDA’s Commitment charge is a variable charge set within a range of 0-0.5 percent of the undisbursed balance of IDA’s credits and grants.
Executive Directors review and approve the level of the commitment charge annually.
e/ The service charge is 0.75 percent of the disbursed and outstanding credit balance.
f/ Regular credit for small island economies will continue to be 40-year maturity; 10-year grace period; 2 percent per annum through years
11-20; 4 percent per annum through years 21-40.
g/ Blend terms apply to blend countries and IDA countries with GNI per capita above the operational cutoff for more than two consecutive
years, known previously as “gap” or “hardened term” countries. An exception to the GNI per capita operational cutoff for IDA eligibility
has been made for some small island economies on the basis of their vulnerability.
h/ Year 6-15.
i Year 16-25.
j/ Blend countries (excluding small island states with a population of less than 1.5 million that receive regular IDA credit terms) are eligible
for hard-term IDA credits. These resources are additional to a country’s regular performance based allocation. The access to hard-term
credits is expanded in proportion to the countries’ performance based allocation. Standard IDA service and commitment charges apply
plus a fixed interest charge for the life of each credit. IDA sets the interest rate for hard-term credits on an annual basis (in June of each
year for the new fiscal year starting July 1) as the fixed rate equivalent of IBRD interest rates less 200 basis points.
k/ The financing for transitional support is provided on terms that are harder than those for IDA hard term lending but 100 basis points
below the fixed rate equivalent of an IBRD loan. The rate is set on a quarterly basis and applies to credits approved within that quarter.
In addition to a fixed interest charge, transitional support credits carry IDA’s standard service charge (0.75 percent) and a variable
commitment charge. Transitional support credit terms include a 25-year maturity, a 5-year grace period, an amortization schedule
reflecting a straight line amortization (5 percent per annum) and are exempt from accelerated repayment provision.
l/ This fee is applied to the undisbursed balance of the guaranteed financing and is analogous to the commitment charge on IDA credits.
The standby fee is currently fixed at zero basis points per annum. In addition, guarantees are subject to an initiation fee of 15 basis points
or US$100,000 (whichever is higher) and a processing fee of up to 50 basis points of the principal amount of the guarantee for all private
sector borrowers. The processing fee is assessed on a case-by-case basis and can be either waived or increased in exceptional cases.
m/ The guarantee fee is applied on disbursed and outstanding amounts of a guaranteed financing, in the same way service charges on IDA
credits are applied. The guarantee fee is currently fixed at 75 basis points per annum, equal to the fixed level of service charges on IDA
credits.
n/ Year 6-14.
o/ Year 15-24.
p/ Year 9-17.
q/ Year 18-27.
r/ Year 10-23.5.
s/ Year 24-30.
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