development results in middle-income...

THE WORLD BANK

THE WORLD BANK

Development Results inMiddle-Income CountriesAn Evaluation of the World Bank’sSupport


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ISBN 978-0-8213-7287-6

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Study Series2004 Annual Review of Development Effectiveness: The Bank’s Contributions to Poverty ReductionAddressing the Challenges of Globalization: An Independent Evaluation of the World Bank’s Approach to Global Programs Agricultural Extension: The Kenya ExperienceAssisting Russia’s Transition: An Unprecedented ChallengeBangladesh: Progress Through PartnershipBrazil: Forging a Strategic Partnership for Results—An OED Evaluation of World Bank AssistanceBridging Troubled Waters: Assessing the World Bank Water Resources StrategyCapacity Building in Africa: An OED Evaluation of World Bank Support The CIGAR at 31: An Independent Meta-Evaluation of the Consultative Group on International Agricultural ResearchCountry Assistance Evaluation Retrospective: OED Self-Evaluation Debt Relief for the Poorest: An OED Review of the HIPC InitiativeDeveloping Towns and Cities: Lessons from Brazil and the PhilippinesThe Drive to Partnership: Aid Coordination and the World BankEconomies in Transition: An OED Evaluation of World Bank Assistance The Effectiveness of World Bank Support for Community-Based and –Driven Development: An OED EvaluationEvaluating a Decade of World Bank Gender Policy: 1990–99Evaluation of World Bank Assistance to Pacific Member Countries, 1992–2002 Financial Sector Reform: A Review of World Bank AssistanceFinancing the Global Benefits of Forests: The Bank’s GEF Portfolio and the 1991 Forest Strategy and Its ImplementationFiscal Management in Adjustment LendingIDA’s Partnership for Poverty ReductionImproving the Lives of the Poor Through Investment in CitiesIndia: The Dairy RevolutionInformation Infrastructure: The World Bank Group’s ExperienceInvesting in Health: Development Effectiveness in the Health, Nutrition, and Population SectorJordan: Supporting Stable Development in a Challenging RegionLesotho: Development in a Challenging EnvironmentMainstreaming Gender in World Bank Lending: An UpdateMaintaining Momentum to 2015? An Impact Evaluation of Interventions to Improve Maternal and Child Health and Nutrition Outcomes in Bangladesh The Next Ascent: An Evaluation of the Aga Khan Rural Support Program, PakistanNongovernmental Organizations in World Bank–Supported Projects: A ReviewPoland Country Assistance Review: Partnership in a Transition EconomyPoverty Reduction in the 1990s: An Evaluation of Strategy and PerformanceThe Poverty Reduction Strategy Initiative: An Independent Evaluation of the World Bank’s Support Through 2003Power for Development: A Review of the World Bank Group’s Experience with Private Participation in the Electricity SectorPromoting Environmental Sustainability in DevelopmentPutting Social Development to Work for the Poor: An OED Review of World Bank ActivitiesReforming Agriculture: The World Bank Goes to MarketSharing Knowledge: Innovations and Remaining ChallengesSocial Funds: Assessing EffectivenessTunisia: Understanding Successful Socioeconomic Development Uganda: Policy, Participation, PeopleThe World Bank’s Experience with Post-Conflict ReconstructionThe World Bank’s Forest Strategy: Striking the Right BalanceZambia Country Assistance Review: Turning an Economy Around

Evaluation Country Case SeriesBosnia and Herzegovina: Post-Conflict ReconstructionBrazil: Forests in the Balance: Challenges of Conservation with DevelopmentCameroon: Forest Sector Development in a Difficult Political EconomyChina: From Afforestation to Poverty Alleviation and Natural Forest ManagementCosta Rica: Forest Strategy and the Evolution of Land UseEl Salvador: Post-Conflict ReconstructionIndia: Alleviating Poverty through Forest DevelopmentIndonesia: The Challenges of World Bank Involvement in ForestsThe Poverty Reduction Strategy Initiative: Findings from 10 Country Case Studies of World Bank and IMF SupportUganda: Post-Conflict Reconstruction

ProceedingsGlobal Public Policies and Programs: Implications for Financing and EvaluationLessons of Fiscal AdjustmentLesson from Urban TransportEvaluating the Gender Impact of World Bank AssistanceEvaluation and Development: The Institutional Dimension (Transaction Publishers)Evaluation and Poverty ReductionMonitoring & Evaluation Capacity Development in AfricaPublic Sector Performance—The Critical Role of Evaluation

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WORKING FOR A WORLD FREE OF POVERTY

The World Bank Group consists of five institutions—the International Bank for Reconstruction and Development(IBRD), the International Finance Corporation (IFC), the International Development Association (IDA), theMultilateral Investment Guarantee Agency (MIGA), and the International Centre for the Settlement of InvestmentDisputes (ICSID). Its mission is to fight poverty for lasting results and to help people help themselves and their envi-ronment by providing resources, sharing knowledge, building capacity, and forging partnerships in the public andprivate sectors.

THE WORLD BANK GROUP

ENHANCING DEVELOPMENT EFFECTIVENESS THROUGH EXCELLENCE AND INDEPENDENCE IN EVALUATION

The Independent Evaluation Group (IEG) is an independent, three-part unit within the World Bank Group. IEG-World Bank is charged with evaluating the activities of the IBRD (The World Bank) and IDA, IEG-IFC focuses onassessment of IFC’s work toward private sector development, and IEG-MIGA evaluates the contributions of MIGAguarantee projects and services. IEG reports directly to the Bank’s Board of Directors through the Director-General,Evaluation.

The goals of evaluation are to learn from experience, to provide an objective basis for assessing the results of theBank Group’s work, and to provide accountability in the achievement of its objectives. It also improves Bank Groupwork by identifying and disseminating the lessons learned from experience and by framing recommendations drawnfrom evaluation findings.

THE INDEPENDENT EVALUATION GROUP

Inside—

— Foreword

— Executive Summary

— Management Response

— Chairperson’s Summary: Committee on Development Effectiveness (CODE)

MICs-minicover-EN.qxd 8/30/07 9:35 AM

Development Results in

Middle-Income Countries

An Evaluation of the World Bank’s Support

2007The World Bank

Washington, D.C.

W O R L D B A N K I N D E P E N D E N T E V A L U A T I O N G R O U P

http://www.worldbank.org/ieg

—Evaluation Summary—

©2007 The International Bank for Reconstruction and Development / The World Bank1818 H Street NWWashington DC 20433Telephone: 202-473-1000Internet: www.worldbank.orgE-mail: [email protected]

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Cover photo: A young boy stands with a soccer ball in one of the favelas of Rio de Janeiro, Brazil, 2006. Photo from Paulo Fridman/Corbis.

ISBN-13: 978-0-8213-7287-6e-ISBN-13: 978-0-8213-7288-3DOI: 10.1596/978-0-8213-7287-6

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i i i

Foreword

Middle-income countries are facing rapidlyevolving development challenges as theireconomies mature and integrate into the globaleconomy. As a group, the 86 middle-incomecountries account for about one-fifth of worldoutput, and their per capita income has grownby almost 4 percent annually since 1995. Yet theyare still home to one-third of the world’s poorestcitizens, living on less than two dollars per day.

The World Bank has provided US$163 billion inloans to these countries since 1995 and itallocates about half its administrative budget toworking with them. Today, as a group thesecountries have far more choice than they dideven 10 years ago in obtaining both finance andknowledge for development. With the dramaticchanges in the global context, many stakehold-ers and outside commentators have begun topropose that the Bank change its relationshipwith this group—with proposals ranging fromstrengthened engagement to withdrawal.

This IEG evaluation brings a fresh perspective tothe debate by assessing the developmenteffectiveness of the Bank’s recent work. Itpresents evidence—including views from theclient countries themselves—about the outcomesof the Bank’s support to individual countries over

the past 12 years. It also spotlights three growingdimensions of the Bank Group’s role—sharingknowledge across countries, engaging countriesin global programs, and combining support to thepublic and private sectors.

The Bank’s support for fostering growth andreducing poverty has contributed to the consid-erable success of middle-income countries inthese key areas. But the Bank must swiftlybecome more effective on other crucial issueswhere its work has not yielded pronouncedadvancements—dealing with inequality, combat-ing corruption, and protecting the environment.Yes, the Bank should continue its engagementwith this group—but it will need to depart frombusiness as usual.

The Bank has to become more agile in responseto rapidly changing client needs. It needs to drawupon middle-income countries’ own capacitymore systematically, connecting such capabilitiesto help low-income countries and to tackleglobal challenges. Its work must consistentlyintroduce and scale up cutting-edge develop-ment solutions. Change in these aspects willallow the Bank to continue offering support thatwill effectively benefit the more than 800 millionpoor in middle-income countries.

Vinod ThomasDirector-General, Evaluation

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Executive Summary

The 86 middle-income countries (MICs) form a diverse group of con-siderable global importance, and they are home to one-third of theworld’s poor. The World Bank has lent $163 billion to MICs since

1995—nearly two-thirds of its total lending to all developing countries—andallocates about half of its administrative budget to work with this group.

This evaluation of the Bank’s programs (fiscalyears 1995–2006) concludes that its support infostering growth and reducing poverty has beenappreciated by MICs and has made a contribu-tion to their considerable success in these majorareas. But it also concludes that the Bank mustbecome more effective on issues where its workhas not yielded pronounced advancements,notably dealing with inequality, combatingcorruption, and protecting the environment.

The Bank’s quality stamp—reflected in technicalexpertise, project design and supervision, andadvisory services—has been a key strength. Itsadvisory work has been strong on diagnostics butwould have greater impact if it concentrated moreon specific local needs. It could have done betterin drawing on MICs to help shape priorities forglobal programs and in finding ways to increasesynergy across the Bank, the International FinanceCorporation (IFC), and the Multilateral Invest-ment Guarantee Agency (MIGA). Looking ahead,the Bank should continue its engagement withMICs, but it must depart from business as usual.To produce greater development benefits it has tobecome more agile in response to rapidlychanging client needs; draw upon MICs’ owncapacity more systematically; and more clearlydemonstrate best practice to deliver impactbeyond the Bank’s limited direct role.

A Rapidly Changing Context in MICsMICs—the 86 countries that fall into the middle-

income range set by the Bank’s World Develop-ment Indicators—account for just under half ofthe world’s population, are home to one-third ofpeople across the globe living on less than $2 perday, and are found in all six of the Bank’sgeographical Regions. They cover a wide incomerange—the highest- income MIC has a per capitaincome 10 times that of the lowest. The grouphas grown in number since the mid-1990s,including 10 countries (for example, China andEgypt) that moved from the low-income to themiddle-income category. MICs are also impor-tant partners of, shareholders in, and borrowersfrom the World Bank.

The environment in MICs has changed significantlyin recent years and is likely to continue to evolverapidly. MICs’ institutional capacity has beenstrengthening, while the increasing role of theprivate sector in most economies and growingglobalization have added to the complexity of thedevelopment challenges they face. The grouphas enjoyed an expansion of choice in its sourcesof both development finance—the number ofMICs with capital market credit ratings has morethan doubled since the mid-1990s—and ofknowledge. Indeed, for MICs the Bank’s newlending amounts to only a small and decliningshare of national investment—0.6 percent in2005, down from 1.2 percent in 1995.Repayments on existing loans exceeded newdisbursements by an annual average of $3.8billion for the group over the past 12 years. It is

in view of these changing conditions, and debateabout the role of the Bank in MICs, that IEGevaluated the Bank’s lending and nonlendingactivities in the group over fiscal 1995–2006. Themain question is: How has the Bank’s engage-ment with MICs fared in this setting?

Performance on Priorities for MICs and the BankThe Bank has tailored its individual country strate-gies astutely to be relevant to the varied needsacross this very diverse group. Most countrystrategies have focused on sectors and themesimportant for countries’ development needs,including promoting growth. They have broughttogether tools—finance, knowledge, conveningpower—in a fairly well integrated fashion,thereby providing a mix of support not readilyavailable from other sources. For some clients,however, particularly among the 30 small-stateMICs, the Bank’s mix of tools has fit less well withcountry conditions.

On the overarching priority of promoting growth—emphasized at the corporate level in the two-pillardevelopment strategy—the Bank’s support to MICshas been effective and generally well regarded byclients. MICs as a group have grown robustly,particularly since 2001, when more than two-thirds of the group had achieved average annualper capita growth above 2 percent. The closematch between country and Bank priorities hascreated an environment for ownership ofmeasures to enhance growth. Nearly 70 percentof respondents in this evaluation’s client surveyrated the Bank’s support in fostering growth asmoderately effective or better. The Bank’smacroeconomic and structural policy analysishas been good, and this analytical work has beencombined with policy-based lending in severalcountries, including Colombia and Romania, toput growth-enhancing measures into practice.Bank-financed projects in several sectors that canhelp facilitate growth, including those ininfrastructure, have been particularly strongperformers.

In moving beyond growth into poverty reduction, MICshave secured some positive outcomes overall. The

group as a whole has lifted nearly 400 millionpeople above the $2-per-day poverty thresholdsince 1993. In addition to the world-leadingachievements of China, the other MICs havereduced their poverty rate by 20 percent, andthis has been considerably faster than thereduction observed in low-income countries(LICs) over that period. And clients in MICsacross the income spectrum have provided afavorable assessment of the Bank’s overallsupport to reducing poverty—with three-fifthsrating its help as moderately effective or better.

The Bank has paid significant attention to poverty inits country strategies, including helping to quantifyand analyze its incidence, as well as to assistclients in developing responses to their particu-lar poverty issues. This stance in addressingpoverty has proved pertinent to most MICs’needs and has been successfully meshed withwork on supporting sustained growth. Forexample, in Bulgaria clients appreciated the anti-poverty efforts that emphasized improvinginstitutions and the investment climate alongsidemeasures that specifically targeted pockets ofpoverty.

Progress on poverty has been helped by work insupporting poverty-focused interventions, includingsocial assistance programs. In Tunisia, forexample, the Bank’s policy work supported thegovernment’s focus on growth with equity,which helped, among other things, to increaseincomes in remote rural areas. In many cases thecombination of knowledge work and finance hasproved valuable, as encapsulated in socialassistance projects, which have performedparticularly well. The transfer of knowledgeacross countries has been a positive ingredientof the Bank’s work in this area, exemplified bythe sharing of experiences with conditional cashtransfer programs in many locations—and notedby clients in Colombia and Turkey as a significantvalue added in the Bank’s support.

But on helping protect the poor during crises—one ofthe rationales for support to MICs suffering financialcalamity—clients express some dissatisfaction withthe Bank’s efforts. Case studies confirm that the

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D E V E L O P M E N T R E S U LT S I N M I D D L E - I N C O M E C OU N T R I E S

Bank response speed in assisting countries once acrisis has emerged has been good (althoughcoordination with the International MonetaryFund was suboptimal), its liquidity assistance hasbeen appreciated, and its work helped advancestructural reforms. Nevertheless, in Brazil, theRussian Federation, and Thailand, neither theBank nor the authorities had strong contingencyplans to strengthen social safety nets to protectthe poor during crises. Furthermore, Banksupport for more substantial social protectionreforms, where sustained government ownershipwas not always apparent, had modest impact overthe longer run.

Less progress has been made on important issuesbeyond the growth agenda, where there are signifi-cant challenges. In particular, more than half ofMICs have seen inequality rising over the pastdecade. While the Bank’s work has shownincreasing awareness of the issue, it has not yetsucceeded in helping countries deal convinc-ingly with the problem. Over half of client surveyrespondents rated the Bank’s work in addressinginequality as moderately ineffective or worse. Inmany MICs, inequality has a strong geographicdimension: particular regions within countriesface a growing prosperity gap with better-performing locations. In Ukraine, for example,the Bank has supported regional developmentefforts, but reductions in regional inequality haveyet to be secured.

Progress has also been sketchy and deficient in somerespects on other important corporate priorities. Onthe challenge of fighting corruption, which isrelevant to many MICs, there is limited evidencethat the Bank’s efforts have found much traction.Perception indicators measuring control ofcorruption have not moved significantly in themajority of MICs over the review period. InIndonesia, for example, despite some positivesteps by the government and useful contribu-tions from the Bank, corruption remainsproblematic, and the outcome of the Bank’swork in this field has been assessed asmoderately unsatisfactory. In this evaluation’sclient survey, views across MICs were quite starkon this issue—two-thirds of respondents judged

the Bank’s contributions to reducing corruptionas moderately ineffective or worse, the mostnegative response received on surveyed topics.To some extent these observations may reflectthe complex, sensitive, and long-haul nature ofdealing with corruption. There are some signs ofprogress—for example, in Turkey and Ukraine—with Bank help, including support for improvedprocurement practices and better monitoringand awareness of corruption.

Finally, meeting environmental challenges in MICshas proved problematic. The Bank has given someattention to the topic, and most MIC CountryAssistance Strategies mention environmentalissues. Some country programs, for example,those in Brazil in the review period, have helpedto deliver satisfactory progress by positioningenvironmental issues as integral to the sustain-able growth agenda, securing governmentownership, and building domestic institutionalcapacity in the environment field. But thisexperience has not been widespread, andlending for projects mapped to the Environ-ment Sector Board have performed poorlycompared with projects in other sectors.Difficulties have included overly complexproject design, a lack of institutional capacityfor implementation—for example, in the landuse rationalization project in Paraguay—wavering political support, and weaknesses inongoing coordination between implementingagencies and the Bank.

Influences on the Performance of the BankDevelopment needs differ across MICs.Countries at the lower end of the income bandtend to face a broad range of challenges, whilethose with higher incomes concentrate onmore specific issues. There are also consider-able variations in the nature of Bank countryprograms, including the volume of lending andits scale relative to country resources, thebalance between lending and advisory services,and the sectors and themes of primaryemphasis. The evaluation found that acrossdifferent country and program types, severalfeatures relating to the Bank’s way of working

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have enhanced—or impaired—the success ofits support. These are the adaptability andresponsiveness in its instruments and pro-grams; the quality of expertise; the extent theprogram drew on MICs’ own capacity, includingin global programs; and internal Bank Groupcooperation.

The Bank has not been agile and has struggled tokeep pace with the speed of change in client needsand demands. This lack of agility has taken severalforms. Clients in several countries emphasizedslow responsiveness to changing countryconditions, including their changing preferenceson financing instruments, which may haveundermined the Bank’s relevance and led themto look elsewhere for financing. Anotherdimension is processes and procedures that areseen as cumbersome and that impede access toBank support. Certainly clients take into accountthe specific financial terms as they make borrow-ing decisions. But nonfinancial costs of doingbusiness, alongside other considerations such asquality and program relevance, carry even moreweight for many clients.

The Bank takes too long to consider andimplement significant changes—such as use ofcountry safeguards in place of Bank-specificsystems—in relation to the needs and opportu-nities presented in MICs. One timing issue theBank has got right is better alignment of itsindividual country programs with nationalplanning cycles—noted by clients in Colombiaand China, among others—which improves theprospects of success.

Clients find the Bank’s quality stamp—reflected in itstechnical expertise, project design, and supervisionskills—to be a key strength. For some countries it iswhat is embedded in this quality stamp thatprovides the main value in Bank financing. Andacross MICs, Bank analytical and advisory work hasbeen, in most cases, of high technical quality, andhas satisfactorily embodied the lessons of interna-tional experience. For example, in Thailand itssupport for recent work on the economics ofeffective AIDS treatment helped link policy makerswith the latest international experience, which

further strengthened the country’s programs. Buton other occasions the effectiveness of knowledgeservices in shaping opinion for public policy andinvestment has been hampered by inadequatepresentation and dissemination of reports. Theseweaknesses have held back the Bank’s contribu-tion to the information marketplace.

An opportunity has been missed in failing to drawupon MICs’ own national capacity in a strategic orample manner. In some sectors, such as educationand health, specific local knowledge is vital, buteven in sectors where international best practiceis more clearly established, such as the financialsector, local perspective on how to implementdevelopment solutions is essential. In thisregard, the Bank’s knowledge services, perhapsin part because they have not fully used orhelped build national capacity, have too oftenbeen good on diagnostics but weak in applyingexpertise to specific local needs. And while someMICs recognize the potential for the Bank to helptransfer knowledge to other countries, its effortsto incorporate this explicitly in its countryprograms, or indeed through a clear Bank-wideframework, have been modest.

Similarly, MICs have had limited voice in shaping thepriorities for global programs. IEG’s 2005 globalprograms evaluation recommended that theBank and its global partners work to enhance thevoice of client countries on the governing bodiesof global programs. Even though there have sincebeen some positive changes, and MICs typicallyhave more voice in the governance of globalprograms than low-income countries, their inputremains modest. Even large MICs’ involvement inthe governance of significant global programsoccurs only about one-third as often as it does forhigh-income countries. This inhibits MICs’enthusiasm for such programs, and thus theirengagement in them.

Within the Bank Group, despite considerable high-level attention directed toward making the best useof its combined resources, internal cooperationamong the Bank, IFC, and MIGA has been under-whelming. What efforts there have been tocooperate at the country level have been more

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apparent in strategy than in implementation. Incountry programs, Bank Group cooperation hasbeen modest—barely half of planned instancesof cooperation have come to fruition—and itspurported potential has not been fully exploited.In Kazakhstan, for example, although severalareas of cooperation were planned, only one-quarter of those took place. The main factorsinhibiting cooperation are the incompatibletimelines for projects, differences in organiza-tional culture, and prevailing staff concerns thattheir time can neither be easily allocated tocooperation nor recognized in performanceassessment. Another facet that has to be properlymanaged is the risk associated with potential orperceived conflicts of interest across the BankGroup, especially in turbulent market conditionsat times of financial crises.

Overall AssessmentThe outcomes of the Bank’s country programs in MICshave been moderately satisfactory, on average, inmeeting varied country-specific developmentobjectives, including promoting growth andreducing poverty. The outcomes have beenbetter than for the Bank’s work in low-incomecountries (LICs), and indeed the most recentoutcomes in large MICs, including Brazil andChina, have been satisfactory—a notch higher onthe rating scale.

Yet there is significant pressure to do better in anenvironment where MICs’ demands are becomingmore expansive and they have more choices ofsupport. Taken together, a collection of indi-cators—from client surveys, in-country consulta-tions, project reviews, and country programassessments—suggest that for the Bank’s work tohave a more pivotal demonstration effect, agreater proportion of it must reach the higheststandards of effectiveness.

RecommendationsThe Bank should continue its engagement with MICs,but take steps to produce greater developmenteffectiveness. This requires the Bank to departfrom business as usual and to reinvigorate itsrelationship with clients, incorporating the fourmain dimensions highlighted below.

Draw on MIC capacityTo promote greater country ownership of theBank’s work, and to create better opportunitiesfor the Bank to learn from MICs and share theirexperience with LICs, Bank support needs tomore systematically draw upon and develop eachcountry’s own expertise. To this end, manage-ment should require that country assistance/country partnership strategies and significantanalytic and advisory activity (AAA) assignmentshave a clear plan to do this.

The Bank ought to identify incentives andobstacles to MICs’ involvement in the gover-nance of global programs. This could involveproducing an inventory of governance arrange-ments for global programs it supports andconducting a formal consultation exercise withMICs (and other developing countries).

Demonstrate best practiceTo deliver the maximum impact from the Bank’slimited financial role in MICs, in partnershipwith clients, the Bank’s projects and programsmust be selected to go beyond conventionalapproaches and clearly demonstrate how theywill add to best practice development activity inthe respective country setting. They should alsoshow whether, when, and in what way they areexpected to play a catalytic role, being scaled upusing resources beyond those initially providedby the Bank.

Country programs, prepared in full partnershipwith MIC clients, must pay renewed attention toachieving greater effectiveness in three pressingand complex issues: combating corruption,reducing inequality, and protecting the environ-ment. Programs need to draw on the full range ofBank and other available resources to meet thesechallenges.

The Bank could more actively share best practiceand encourage arrangements for knowledgetransfer across countries, Regions, and sectors.Three specific measures to do this would be: (i)giving more weight to this goal in strategicallymanaging staff rotation; (ii) ensuring thatresearch and policy work go beyond general

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principles and focus on specific country-by-country needs; and (iii) reviewing the perform-ance of the networks on this dimension.

Become more agileTo help the Bank more quickly and easily adaptits services and areas of focus for MICs’ evolvingneeds, it needs to set up a program to test newapproaches for a selected group of countries.The first element of the program would be amuch more decisive push on the existing slow-moving pilot for the use of country systems inthe execution of Bank lending, and significantlyincreasing the number of countries and projectsactually implementing the new approach in-country by mid-fiscal 2008.

The trial program would do well to go furtherand offer the selected MICs, each with stronginstitutional capacity, a new menu of support,incorporating features such as fast-trackprocedures, faster response times, and moreflexible strategies.

The Bank should continue efforts to expand thechoice of services it offers. This can be done by

accelerating the development and deploymentof (i) new financial instruments such as thosehelping countries manage and reduce vulnerabil-ity to external shocks; (ii) existing and newproducts that help tackle subnational challenges;and (iii) new arrangements—with clear, consis-tent, and user-friendly guidelines—for fee-for-service technical expertise, including that forproject design and supervision.

Make the most of Bank Group cooperationThe Bank Group must develop a more pragmaticapproach to cooperation across the Bank, IFC,and MIGA, to successfully offer clients a moreeffective package from its combined resources.This approach could include new incentives orchannels for cooperation, such as piloting single-country management arrangements. In caseswhere joint country strategies are appropriate,they should be prepared more rigorously, andfollowed through with performance monitoringdesigned to trace through the net gains fromcooperation. Any new approach must becommunicated to and gain the support of staff,who ultimately determine the extent and successof such cooperation.

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Management Views on IEG’s Analysisand ConclusionsThe IEG review presents valuable analysis on therelevance of the Bank’s work, the effectivenessof its country programs, the sharing and use ofits knowledge, the role of MICs in globalprograms, and Bank Group cooperation. All ofthese issues are important for the ongoing workto strengthen the World Bank’s engagement withIBRD partner countries, implementing thestrategy endorsed by the Development Commit-tee in September 2006 (World Bank 2006e).Overall, management finds the analysis andconclusions to be in line with its own prioritiesfor action.

Priorities for actionSince the Development Committee endorsedthe strategy, management has worked to speedits implementation. The strategic priority is toimprove—and customize to the diverse needs ofMICs—services in each of the Bank’s businesslines: strategic and coordination services,financial services, and knowledge services.Management is also seeking to enhance impact

through greater Bank Group synergy andinternational cooperation and partnerships. Keyactions for improving and customizing servicesare as follows.

• Strategy and coordination services. At the countrylevel, the priority is to produce more flexible, cus-tomized country partnership strategies that in-tegrate all Bank Group services relevant to thecountry, including support for the country’scontribution to regional and global public goods(GPGs.) This work is going ahead on a pilotbasis and will lead to a staff guidance note onceother key proposals—such as on the use ofcountry systems and the business models forsupporting GPGs and delivering fee-basedservices—have been approved. On the globallevel, the priority is a business model for prior-itizing GPGs for Bank engagement and the fi-nancing of that engagement, including supportfor countries’ contributions to the provision ofGPGs. The draft of a report to the next Devel-opment Committee meeting is currently un-dergoing Bank-wide review and will be discussedby executive directors in early September.

Management Response

Management welcomes this Independent Evaluation Group (IEG) re-view of World Bank support to middle-income countries (MICs). Itis comprehensive in its coverage of the relevant issues. It is also

timely, given that management is in the process of implementing an action planto strengthen its engagement with International Bank for Reconstruction andDevelopment (IBRD) partner countries. In particular, management welcomesIEG’s conclusion that the Bank should continue its engagement with MICs,and it agrees that the Bank should do more to improve the quality and im-pact of its support to MICs. Several of the actions aimed at achieving this goalare summarized in the Management Action Record, responding to IEG’s spe-cific recommendations.

• Financial services. IBRD’s role in providing fi-nancial services to MICs has evolved as theirneeds have changed. It currently offers MICs arange of banking products and services, includ-ing flexible loans and risk-management tools tohelp manage volatility in interest rates, curren-cies, and commodity prices, as well as credit en-hancement. To facilitate protecting countries’development resources, it also offers debt man-agement advice and wealth management and ad-visory services. Among the actions to broadenand improve the Bank’s financial and banking ser-vices, three stand out. First, the Bank continuesto streamline policies and procedures with aview to reducing clients’ nonfinancial costs ofdoing business with the Bank and enhancing theBank’s response to client needs. Notably, theBoard recently approved OP/BP 8.00, “Rapid Re-sponse to Crises and Emergencies,” and it willsoon receive a proposal for a revised policy onthe preparation, appraisal, and supervision of in-vestment loans. Second, on the crucial issue ofthe use of country systems where standards aremutually agreed and verifiable, in June, execu-tive directors reaffirmed the Bank commitmentto the use of country systems, endorsed theprinciple of country-based pilots, and agreedon a timetable for consultations and final dis-cussion of a methodology for pilot use of coun-try procurement systems (World Bank 2007).

Third, proposals for improving the transparencyand the competitiveness of IBRD loan pricinghave recently been submitted for considerationby the Board.

• Knowledge services. The key action for meetingMICs’ demand for more and better knowledgeservices is the development and implementa-tion of a business model for the delivery of fee-based services across the full spectrum of Bankexpertise, including analytic and advisory ser-vices, technical assistance, project design andsupervision, and debt management services. Adraft paper has been prepared for Bank-widereview and is expected to be presented to theBoard in early fiscal 2008.

Main Findings and RecommendationsIEG finds the Bank’s support to MICs overall tobe moderately satisfactory but suggests that theBank can do better. It recommends that the Bankremain engaged with MICs but take steps toincrease development effectiveness throughthese channels: draw more on MIC capacity;demonstrate best practice in its MIC support;and be more agile in providing support, includ-ing making the most of Bank Group cooperation.Management is in basic agreement with theserecommendations and has actions under way orplanned to address them. Details are provided inthe attached Management Action Record.

8


Draw on MIC capacityBank support needs to more systematically draw on and de-

velop each country’s own expertise. To this end:

• Management should require that country assistance/coun-

try partnership strategies and significant analytical and ad-

visory activities (AAA) assignments plan clearly to do this.

• The Bank ought to identify incentives and obstacles to MICs’

involvement in the governance of global programs, including

by producing an inventory of governance arrangements for

global programs it supports and conducting a formal con-

sultation exercise with MICs (and other developing countries).

Demonstrate best practice

Bank projects and programs must:

• Be selected, in partnership with clients, to go beyond con-

ventional approaches and clearly demonstrate how they will

add to best practice development activity in the respective

country setting

• Show whether, when, and in what way they are expected to

play a catalytic role, being scaled up using resources beyond

those initially provided by the Bank.

Country programs, prepared in full partnership with MIC clients,

must pay renewed attention to achieving greater effectiveness

in three pressing and complex issues: combating corruption, re-

ducing inequality, and protecting the environment. Programs

need to draw on the full range of Bank and other resources

available to meet these challenges

The Bank could more actively share best practice and en-

courage arrangements for knowledge transfer across countries,

Regions, and sectors by (i) giving more weight to this goal in strate-

gically managing staff rotation; (ii) ensuring that research and pol-

icy work goes beyond general principles and focuses on specific

country-by-country needs; and (iii) reviewing the performance of

the networks on this dimension.

Substantially agreed

Management agrees that it is important to draw more system-

atically on and develop each MIC’s own expertise, in both coun-

try strategy and global program development and delivery.

Management is preparing a note on World Bank responsiveness

to demand for global public goods, to be discussed with execu-

tive directors in fiscal 2008. That note will include its plans for

involving MICs (and other developing countries) in setting prior-

ities and in drawing on MIC expertise. Part of this process will

involve consultations with MICs. Management will also prepare

a guidance note for staff on country partnership strategies with

MICs that will address the issue of systematically drawing on and

developing MIC country expertise, notably with regard to strat-

egy development, economic and sector work and other AAA, and

global program priorities. Lastly, management is preparing a part-

nership program to increase the use of MIC expertise and insti-

tutions. The fiscal 2008 Country Assistance Strategy (CAS)

Retrospective will report on implementation. Management will

consider the above agreed actions completed with that report.


Management agrees that it must demonstrate best practice in

its support to MICs. It will do so through four actions: (i) stronger

country partnership strategies developed jointly with MICs; (ii)

improvements in the range of services offered to MICs, notably

financial services and the blending options, with a goal to bet-

ter leverage Bank support; (iii) stronger links between Bank re-

search and MIC needs; and (iv) better management of the pool

of Bank expertise across all networks to ensure timely delivery

of cutting-edge support. However, although all MICs want and

deserve innovative options, in many MICs there will remain a de-

mand for more standard support that the IBRD will need to meet.

Management will consider the agreed actions complete with the

full report to executive directors in the fall of 2007 on imple-

mentation of the action plan to strengthen the World Bank’s en-

gagement with IBRD countries.

M A N AG E M E N T R E S P O N S E

9

Management Action Record

Major IEG recommendation Management response

(Continues on the following page.)

Enhance the Bank’s agility

The Bank needs to set up a program to test new approaches for

a selected group of countries, through the following:

• A much more decisive push on the existing pilot for the use

of country systems—significantly increasing the number of

countries and projects actually implementing the new ap-

proach on the ground by mid fiscal 2008

• Offering the selected MICs a new menu of support incorpo-

rating features such as fast-track procedures, faster re-

sponse times, and more flexible Bank strategies

• Accelerating the development and deployment of (i) new fi-

nancial instruments such as those helping countries manage

external shocks; (ii) existing and new products that help

tackle subnational challenges; and (iii) new arrangements—

with clear, consistent, and user-friendly guidelines—for fee-

for-service technical expertise, including that for project

design and supervision.


Management is taking a range of actions to increase the Bank’s

agility in support of partner countries. The Bank will offer MICs

an expanded menu of support options through a more flexible

portfolio of access to expertise and financing. A major step,

outlined above, is giving more flexibility to country teams in

producing and implementing country partnership strategies, en-

couraging them to use it, and monitoring that use. Work on

country systems, which will add to agility and reduce the cost

of doing business, is advancing with Board endorsement in June

2007 of a plan to accelerate progress. To provide greater agility,

management will continue to improve internal Bank procedures

with a streamlining of investment lending during fiscal 2008. As

partners’ needs have changed, IBRD’s role in providing financial

services to MICs has evolved considerably beyond traditional lend-

ing. To help countries manage risks from interest rate, currency,

and commodity price volatility, IBRD currently offers flexible

loan products as well as derivative/risk-management tools for

application to IBRD and in some cases non-IBRD liabilities. It of-

fers related debt management advice and wealth manage-

ment/advisory services to assist countries in protecting their

development resources. Management is accelerating the im-

plementation of the provision of customized financial solutions

support to borrowers through an enhanced internal review

process. The Deferred Drawdown Option instrument is being re-

viewed to improve its effectiveness.

As part of its MIC strategy the Bank has been engaged in de-

veloping new market-based solutions to help countries deal

with catastrophic events, with a recent launch of the first ever

Regional insurance facility, for Caribbean countries, as the ini-

tial result of this effort. Work is under way to mainstream and

scale up public sector financing at the subnational level under

a newly established department, as a joint initiative of the IBRD

and the International Finance Corporation.

Finally, management will develop a consistent framework for

interested partners to draw on the Bank for fee-based advisory

services and technical assistance in project implementation.

Management will consider the above agreed actions complete

with the report on the use of country partnership flexibility in the

CAS Retrospective; the approval of the streamlined policy for in-

vestment lending; continuation of ongoing efforts to customize

1 0


Management Action Record (continued)


financial solutions and expand choice of financial services, such

as those for managing external shocks and subnational financ-

ing; and the introduction of the new framework for fee-based ser-

vices for interested partners. Management will report on overall

progress periodically to executive directors, starting with the re-

port to executive directors in the fall of 2007 on implementation

of the action plan to strengthen the World Bank’s engagement

with IBRD countries.

M A N AG E M E N T R E S P O N S E

1 1


1 3

BackgroundCODE discussed the Approach Paper for thisreport in February 2006. At the 2006 AnnualMeeting, management presented its strategy forengagement with International Bank forReconstruction and Development (IBRD)partner countries and committed to provide anupdated action plan for implementation ofrecommended actions. A Board informalmeeting on implementation progress was heldon April 10, 2007.

The IEG ReportThe Independent Evaluation Group (IEG) reportfound that the outcomes of the Bank’s countryprograms in middle-income countries (MICs)have been moderately satisfactory on average inmeeting varied country-specific developmentobjectives, including promoting growth andreducing poverty. It also noted that the Bank mustbecome more effective on issues where its workhas not yielded pronounced advancements,notably in dealing with inequality, combatingcorruption, and protecting the environment (IEGis currently undertaking an evaluation on theBank’s activities in the environmental field). IEGrecommended that the Bank continue its engage-ment but take steps to produce greater develop-ment effectiveness. This would require the Bankto depart from business as usual and to reinvigo-

rate its relationship with clients, focusing on thefollowing four dimensions: draw on MIC capacity,demonstrate best practice, become more agile,and make the most of Bank Group cooperation.

Draft Management ResponseManagement found the IEG review comprehen-sive and timely, given the current process ofimplementing an action plan to strengthen theengagement with IBRD partner countries. Inparticular, management welcomed the IEGconclusion that the Bank should continue itsengagement with MICs. Overall, managementfound the analysis and conclusions to be in linewith its own priorities for action.

Overall ConclusionsThe Committee commended IEG for the depthand robustness of its analysis and for producing aclear and concise report that was not only largelyon target but also very timely in informing theBank Group’s long-term strategy exercise, beingprepared under the leadership of the chiefeconomist. The Committee broadly endorsedIEG’s findings and recommendations, whichmanagement substantially agreed to.

With regard to the overall findings, memberscommended the Bank for its support in fosteringgrowth and reducing poverty in MICs. However,

Chairperson’s Summary: Committee on

Development Effectiveness(CODE)

On July 11, 2007, the Committee on Development Effectiveness con-sidered the report Development Results in Middle-Income Countries:An Evaluation of the World Bank’s Support, together with the Draft

Management Response.

some speakers noted that “average results” werenot good enough and that the Bank must strivefor excellence, more clearly demonstrating bestpractice to meet the needs of MICs, which havean expanding choice of sources of developmentassistance. Others expressed disappointmentthat the Bank’s work has not yielded significantresults in addressing inequality, combatingcorruption, and protecting the environment.The role of knowledge services in the Bank’sportfolio drew a number of comments. Severalspeakers expressed strong support for the Bankto further draw on countries’ intellectual andanalytical capacities and to adapt its modusoperandi for knowledge sharing, including facili-tating such sharing between middle-income andlow-income countries. In this regard, somespeakers emphasized the need to strengthen in-house professional capacity and skills.

Some speakers stressed enhanced cooperationwithin the World Bank Group (WBG) and greateragility to adopt different approaches, includinguse of country systems, given the diversity ofMICs, including small MICs. The key was todesign an approach centered on innovation,including within the Bank itself. More specifically,there were suggestions to adjust the businessmodels, to further decentralize, to providegreater staff incentives, and to consider fee-based advisory services. The related issues ofcosting and pricing of lending services elicited adiversity of views. Some speakers felt thatfinancial banking services remained the Bank’score business, including a delivery mechanismfor knowledge transfer.

The following issues were raised during themeeting.

General IssuesSpeakers generally concurred with IEG findingsand recommendations and were pleased with thistimely report. They also welcomed management’ssubstantial agreement with the IEG’s report aswell as the matrix on the MIC Action Plan attachedto the Draft Management Response. A number ofspeakers observed that the IEG report was highlyrelevant for considering the Bank Group engage-

ment with MICs and to the discussions on theBank’s overall long-term strategy.

Performance of the BankA number of speakers were concerned with thefindings that the Bank has not been agile and hasstruggled to keep pace with the clients’ changingneeds and demands. The need for more flexibilityin the Bank’s approach, including adaptingresources, staffing, and incentives, was noted.

One member noted that decentralizing resourcesand authority can help promote flexibility. Severalmembers stressed the importance of rethinkingthe Bank Group’s role and business model toaddress different needs of a diverse group ofcountries. In this regard, they noted that the Bankwould require innovation in new instruments,subnational lending, and high-quality advice.

Many speakers stressed the need to acceleratethe use of country systems in Bank lending, andsimplification and modernization of internalprocesses and procedures. One member ob-served that the Bank was losing institutionalmemory and in-house capacity, including staffwith expertise in key development areas such asagriculture, infrastructure, and technology trans-fer. A few speakers felt the IEG report should haveanalyzed financial aspects such as MICs’ access tointernational financial markets.

IEG responded that its evaluation was centeredon an examination of the development effective-ness of Bank work. The evaluation reviewed butdid not dwell on issues of the Bank’s financingterms, which have been discussed by the Bankand others elsewhere at some length.

Relevance of the Bank’s workSeveral speakers shared the view that the precisefinancing terms of Bank lending were less of apivotal determinant in clients’ borrowing de-cisions and other factors were very important,including the quality of Bank’s work, programrelevance, and nonfinancial costs of doingbusiness. However, others emphasized that thefinancial services of the World Bank and theircompetitive pricing were still pertinent. Several

1 4


speakers commended the evaluation’s positivereports on the Bank’s technical assistance andadvisory services. They supported the Bankcreating more flexibility in unbundled knowledgefrom financing, while recognizing bundledservices can remain a main strength of the Bank.Regarding fee-based services, a few membersindicated that consulting services should notbecome the mainstream of Bank services toclients. While the Bank’s good work on diagnos-tics was highlighted, its weakness in applyingexpertise to specific needs was also noted.

Country programsA number of speakers commended the Bank forits considerable success in fostering growth andreducing poverty over the evaluation’s 12-yearreview period. However, they were concernedthat less progress was observed in reducinginequality and protecting the poorest duringcrisis, combating corruption, and protecting theenvironment.

The importance of considering small MICs andMICs in Sub-Saharan Africa was cited. Themoderately satisfactory outcomes, on average, ofthe Bank’s country programs in MICs was wel-comed, but some found this disappointing,because the Bank’s performance should beexcellent, adding value and providing high-qualitysupport. A few speakers expected some discus-sion on gender issues.

IEG noted that its report contains some analysison gender issues and points to significantchallenges and opportunities for MICs and theBank on this topic.

Sharing and use of knowledgeSeveral speakers commented on the Bank’s rolein demonstrating “best practices” to ensure it addsthe maximum value it can to MICs in meeting theirdevelopment challenges. They also noted thatMICs’ demand for knowledge, including analyticaland advisory activities tailored to particularcountry circumstances. A few members stressedthe Bank’s comparative advantage in knowledge

dissemination. There were also comments on therole of the Bank, which management viewed as apeer-to-peer collaboration rather than a teacher-student relationship. One member agreed thatthe Bank was a partner, but another saw it as aknowledge “clearing house” or a teacher helpingto identify best practices.

Some members emphasized the Bank’s need todraw on the country’s own capacity and expertise,partnering with governments and local researchinstitutions to create greater ownership andengender learning. A question was raised on therole of other international financial institutions inknowledge creation and dissemination. Onemember questioned the application of MICs’experience to less-developed countries. Heobserved that in the Country Assistance Strategies,the Bank Group was focusing on social develop-ment and governance in low-income countriesand on economic development in MICs. He feltthis trend should be reversed. Another speakernoted that there are different definitions associ-ated with the MIC label and that there are valuableexperiences in those countries that are IBRDeligible and often considered as “middle income.”

Engagement in global programsSome speakers agreed that it is the Bank’s key roleto engage MICs in global initiatives, given MICs’growing share of global income and population.However, they found gaps in approach, and a fewnoted that MICs’ commitment to global programsshould involve financial contributions and consis-tent policies.

Cooperation across the Bank GroupSeveral speakers emphasized cooperation withinthe WBG, which is a recurrent theme in recentdiscussions. They broadly agreed with IEG’srecommendation that such cooperation shouldbe pragmatic and tightly drawn. One member feltthat cooperation should be possible whileenhancing the comparative advantages of eachinstitution. In this regard, he cautioned about therisks of having a single country managementarrangement proposed by IEG.

C H A I R P E R S O N ’ S S U M M A RY: C O M M I T T E E O N D E V E L O P M E N T E F E C T I V E N E S S ( C O D E )

1 5

Jiayi Zou, Chairperson

This document is the executive summary of the Independent Evaluation Group’s main reportentitled Development Results in Middle Income Countries: An Evaluation of the World Bank’sSupport. The full text of the evaluation, including the World Bank Management’s commentsand a summary of the discussion by the World Bank Board’s Committee on DevelopmentEffectiveness, is available at www.worldbank.org/ieg/mic, and in hard copy from the WorldBank’s publications office and information centers.

Study Series2004 Annual Review of Development Effectiveness: The Bank’s Contributions to Poverty ReductionAddressing the Challenges of Globalization: An Independent Evaluation of the World Bank’s Approach to Global Programs Agricultural Extension: The Kenya ExperienceAssisting Russia’s Transition: An Unprecedented ChallengeBangladesh: Progress Through PartnershipBrazil: Forging a Strategic Partnership for Results—An OED Evaluation of World Bank AssistanceBridging Troubled Waters: Assessing the World Bank Water Resources StrategyCapacity Building in Africa: An OED Evaluation of World Bank Support The CIGAR at 31: An Independent Meta-Evaluation of the Consultative Group on International Agricultural ResearchCountry Assistance Evaluation Retrospective: OED Self-Evaluation Debt Relief for the Poorest: An OED Review of the HIPC InitiativeDeveloping Towns and Cities: Lessons from Brazil and the PhilippinesThe Drive to Partnership: Aid Coordination and the World BankEconomies in Transition: An OED Evaluation of World Bank Assistance The Effectiveness of World Bank Support for Community-Based and –Driven Development: An OED EvaluationEvaluating a Decade of World Bank Gender Policy: 1990–99Evaluation of World Bank Assistance to Pacific Member Countries, 1992–2002 Financial Sector Reform: A Review of World Bank AssistanceFinancing the Global Benefits of Forests: The Bank’s GEF Portfolio and the 1991 Forest Strategy and Its ImplementationFiscal Management in Adjustment LendingIDA’s Partnership for Poverty ReductionImproving the Lives of the Poor Through Investment in CitiesIndia: The Dairy RevolutionInformation Infrastructure: The World Bank Group’s ExperienceInvesting in Health: Development Effectiveness in the Health, Nutrition, and Population SectorJordan: Supporting Stable Development in a Challenging RegionLesotho: Development in a Challenging EnvironmentMainstreaming Gender in World Bank Lending: An UpdateMaintaining Momentum to 2015? An Impact Evaluation of Interventions to Improve Maternal and Child Health and Nutrition Outcomes in Bangladesh The Next Ascent: An Evaluation of the Aga Khan Rural Support Program, PakistanNongovernmental Organizations in World Bank–Supported Projects: A ReviewPoland Country Assistance Review: Partnership in a Transition EconomyPoverty Reduction in the 1990s: An Evaluation of Strategy and PerformanceThe Poverty Reduction Strategy Initiative: An Independent Evaluation of the World Bank’s Support Through 2003Power for Development: A Review of the World Bank Group’s Experience with Private Participation in the Electricity SectorPromoting Environmental Sustainability in DevelopmentPutting Social Development to Work for the Poor: An OED Review of World Bank ActivitiesReforming Agriculture: The World Bank Goes to MarketSharing Knowledge: Innovations and Remaining ChallengesSocial Funds: Assessing EffectivenessTunisia: Understanding Successful Socioeconomic Development Uganda: Policy, Participation, PeopleThe World Bank’s Experience with Post-Conflict ReconstructionThe World Bank’s Forest Strategy: Striking the Right BalanceZambia Country Assistance Review: Turning an Economy Around

Evaluation Country Case SeriesBosnia and Herzegovina: Post-Conflict ReconstructionBrazil: Forests in the Balance: Challenges of Conservation with DevelopmentCameroon: Forest Sector Development in a Difficult Political EconomyChina: From Afforestation to Poverty Alleviation and Natural Forest ManagementCosta Rica: Forest Strategy and the Evolution of Land UseEl Salvador: Post-Conflict ReconstructionIndia: Alleviating Poverty through Forest DevelopmentIndonesia: The Challenges of World Bank Involvement in ForestsThe Poverty Reduction Strategy Initiative: Findings from 10 Country Case Studies of World Bank and IMF SupportUganda: Post-Conflict Reconstruction

ProceedingsGlobal Public Policies and Programs: Implications for Financing and EvaluationLessons of Fiscal AdjustmentLesson from Urban TransportEvaluating the Gender Impact of World Bank AssistanceEvaluation and Development: The Institutional Dimension (Transaction Publishers)Evaluation and Poverty ReductionMonitoring & Evaluation Capacity Development in AfricaPublic Sector Performance—The Critical Role of Evaluation

IEG PUBLICATIONS

All IEG evaluations are available, in whole or in part, in languages other than English. For our multilingual selection, please visithttp://www.worldbank.org/ieg

WORKING FOR A WORLD FREE OF POVERTY

The World Bank Group consists of five institutions—the International Bank for Reconstruction and Development(IBRD), the International Finance Corporation (IFC), the International Development Association (IDA), theMultilateral Investment Guarantee Agency (MIGA), and the International Centre for the Settlement of InvestmentDisputes (ICSID). Its mission is to fight poverty for lasting results and to help people help themselves and their envi-ronment by providing resources, sharing knowledge, building capacity, and forging partnerships in the public andprivate sectors.

THE WORLD BANK GROUP

ENHANCING DEVELOPMENT EFFECTIVENESS THROUGH EXCELLENCE AND INDEPENDENCE IN EVALUATION

The Independent Evaluation Group (IEG) is an independent, three-part unit within the World Bank Group. IEG-World Bank is charged with evaluating the activities of the IBRD (The World Bank) and IDA, IEG-IFC focuses onassessment of IFC’s work toward private sector development, and IEG-MIGA evaluates the contributions of MIGAguarantee projects and services. IEG reports directly to the Bank’s Board of Directors through the Director-General,Evaluation.

The goals of evaluation are to learn from experience, to provide an objective basis for assessing the results of theBank Group’s work, and to provide accountability in the achievement of its objectives. It also improves Bank Groupwork by identifying and disseminating the lessons learned from experience and by framing recommendations drawnfrom evaluation findings.

THE INDEPENDENT EVALUATION GROUP

Inside—

— Foreword

— Executive Summary

— Management Response

— Chairperson’s Summary: Committee on Development Effectiveness (CODE)

MICs-minicover-EN.qxd 8/30/07 9:35 AM Page 2

THE WORLD BANK

THE WORLD BANK



Eval

uatio

n

Sum

mar

y

SKU 17287

ISBN 978-0-8213-7287-6

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