Professional Documents
Culture Documents
Evaluation
Independent
N+*E In t#i! report" ,-. refer! to /S dollar!0 5e 4ord! a!ian development ban6" c#an$e" di!a!ter ri!6 mana$ement" environmental !u!tainabilit " fra$ile and conflict-affected !ituation!" $reen#ou!e $a! emi!!ion" inclu!ive $ro;t#" independent evaluation department" mid-tem revie;" millennium development $oal" public !ector mana$ement" private !ector development" <ualit at-entr " re$ional inte$ration" re!ilience" !trate$ 2020" triple bottom line
10 *#oma!" Independent Evaluation &epartment 2IE&3 40 5ol6ma" Independent Evaluation &ivi!ion 1" IE& 70 1an Ri8n" 9rincipal Evaluation Speciali!t" IE& '0 Gra#am" Senior Evaluation Speciali!t" IE& :0 +cenar" Evaluation +fficer" IE& 10 )elo-Cabuan$" Evaluation %!!i!tant" IE&
*#e $uideline! formall adopted b t#e Independent Evaluation &epartment 2IE&3 on avoidin$ conflict of intere!t in it! independent evaluation! ;ere ob!erved in t#e preparation of t#i! report0 *o t#e 6no;led$e of IE&" t#ere ;ere no conflict! of intere!t of t#e per!on! preparin$" revie;in$" or approvin$ t#i! report0 In preparin$ an evaluation report" or b ma6in$ an de!i$nation of or reference to a particular territor or $eo$rap#ic area in t#i! document" IE& doe! not intend to ma6e an 8ud$ment! a! to t#e le$al or ot#er !tatu! of an territor or area0
%bbreviation!
%&' C+2 Co9 C9S &R) FC%S IE& 59S )&G )IC )*R 9CR 999 9S& 9S) 9S+ 9S+& ?%E S)E *% = = = = = = = = = = = = = = = = = = = %!ian &evelopment 'an6 carbon dio>ide Communitie! of 9ractice countr partner!#ip !trate$ di!a!ter ri!6 mana$ement fra$ile and conflict-affected !ituation! Independent Evaluation &epartment 6no;led$e product! and !ervice! millennium development $oal middle income countr mid-term revie; pro8ect completion report public=private partner!#ip! private !ector development public !ector mana$ement private !ector operation! 9rivate Sector +peration! &epartment <ualit -at-entr !mall and medium enterpri!e tec#nical a!!i!tance
Contents
Page Acknowledgments Foreword Seven Steps to Raise ADBs Impact Views from E ternal E perts C!apter "# A C!anging Asia and Pacific Region C!apter $# Incl%sive &rowt! C!apter (# Environmentall) S%staina*le &rowt! C!apter ,# Private Sector Development C!apter .# /nowledge Sol%tions C!apter 0# 1arnessing Reso%rces for Better 2%tcomes Appendi es "3 $3 (3 ,3 ADBs Evolving Strategic 4andscape 5a6or ADB Policies7 Plans7 &%idelines adopted $''- onwards S%mmar) of 5essages from E ternal Stake!olders S%mmar) of 5essages from Internal Stake!olders ." .$ ., .. i iii v i " "' "+ $(. ,"
%c6no;led$ment! %c6no;led$ment!
*#i! report ;a! prepared t#rou$# a collective effort of !taff and mana$ement at Independent Evaluation" under t#e $uidance of 1inod *#oma!" &irector GeneralE 4alter 5ol6ma" &irectorE 7emamala 7etti$e" Senior %dvi!orE and 1alerie Reppelin-7ill" %dvi!or0 7an! van Ri8n and 'en8amin Gra#am co-led t#e report ;it# !upport from :ucille +cenar" 1alerie )elo-Cabuan$" and con!ultant! %nil Sood and Ra!#el 9ardo-&imaano0 7enri6e Fei$" )arco Gatti" Eun6 un$ 5;on" Gane!# Rauni ar" 7 un Son" 5apil *#u6ral" *omoo /eda" 'i#n N$u en" Nat#an Subramaniam" *o!#i u6i Fo6ota" and %ndre; 'ruba6er are ac6no;led$ed for t#eir valuable contribution! to t#e report0 )ic#ael &iGa de!i$ned t#e cover0 *#e report benefited !i$nificantl from feedbac6 and in!i$#t! provided b : 7onorable 5ri!talina Geor$ieva" Commi!!ioner for International Cooperation" 7umanitarian %id and Cri!i! Re!pon!e" European /nionE &r0 Noeleen 7e Ger" /nder-Secretar General of t#e /nited Nation! and E>ecutive Secretar " /nited Nation! Economic and Social Commi!!ion for %!ia and t#e 9acificE 7onorable )ari 9an$e!tu" )ini!ter of *ouri!m and Creative Econom " Republic of Indone!iaE and 7onorable Emilia 9ire!" )ini!ter of Finance" *imor-:e!te0 *#e team t#an6! t#e mana$ement and !taff of t#e %!ian &evelopment 'an6 Strate$ and 9olic &epartment for t#e cordial cooperation and coordination durin$ t#e )idterm Revie; proce!!0 *#e team al!o t#an6! t#e #ead! and member! of %&'(! Communitie! of 9ractice and ot#er %&' !taff for t#eir time and input!0 Government official! and !taff from partner development a$encie! are al!o reco$niGed for t#eir contribution!0 Independent Evaluation remain! full re!pon!ible for t#e report0
10
*#e re$ion #a! e>perienced one of t#e fa!te!t economic $ro;t# rate! in t#e ;orld" but income and non-income ine<ualit #ave been on t#e ri!e" ;#ile povert " malnutrition" and $ender di!parit remain ;ide!pread0 Gini coefficient! #ave ri!en in 12 out of 2B %!ian economie!" affectin$ B0I of %!ia(! population" and t#e re$ion remain! far from ac#ievin$ $ender e<ualit 0 %rea! ;#ere pro$re!! i! particularl lac6in$ include acce!! to productive re!ource! and economic opportunit E t#ere are al!o ;ide deficit! in education and #ealt#0 *#e!e trend! #urt !ocial co#e!ion" limit participation" and t#reaten to bloc6 !u!tained $ro;t#0 'ot# infra!tructure and non-infra!tructure pro8ect! can promote inclu!ive $ro;t#" but !uc# an outcome i! not automatic" a! i! often a!!umed0 9ro8ect! $eared to;ard promotin$ #i$# $ro;t# ;ill ma6e an optimal contribution to inclu!ive $ro;t# onl if de!i$ned ;it# t#e ob8ective of benefitin$ lo;er-income $roup! relativel more0 7ence" t#e c#oice of pro8ect! !#ould be determined b t#eir li6el impact on area! !uc# a! 8ob creation" povert reduction" and improvin$ acce!! to !ocial !ervice!0
In relation to %&'(! primar emp#a!i! on infra!tructure pro8ect!" t#e in!titution ou$#t to rebalance t#e t#ru!t of it! portfolio bot# b !ee6in$ $reater economic and !ocial inclu!ion in infra!tructure operation!" and increa!in$ !upport for pro8ect! t#at broaden acce!! to opportunitie! and !upport !ocial protection0 *#e portfolio ;ould need to appl a filter to en!ure t#at it! benefit! accrue to lo;er income $roup! 2!a " t#e
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20
Runa;a climate c#an$e and continuin$ environmental de$radation are provin$ to be $ame c#an$er!0 %ir and ;ater pollution are perva!ive t#reat! to #ealt# and ;ellbein$ in t#e re$ion" ;#ile defore!tation" land de$radation and !oil ero!ion ;or!en t#e impact! of climate c#an$e0 Indu!trial countrie! #ave muc# $reater emi!!ion! per capita" but developin$ %!ia no; contribute! over one-t#ird of $lobal carbon dio>ide emi!!ion! 2t;ice it! !#are of $lobal $ro!! dome!tic product30 *#ere i! a $ro;in$ diver$ence bet;een ;or!enin$ environmental and di!a!ter trend! and %&'(! action! in t#i! re!pect0 &i!a!ter! are provin$ to be co!tl " affectin$ t#e economic $ro;t# rate! of countrie!0 *#e al!o e>acerbate ine<ualit " a! t#e mo!t vulnerable people are t#e ;or!t affected" and #ave t#e #arde!t time recoverin$0 *#e double #ammer of $ro;in$ ine<ualit and t#e increa!in$ fre<uenc of inten!e di!a!ter! ma6e it more difficult to addre!! vulnerabilit 0
Inve!tment! in di!a!ter re!ilience" $enerated t#rou$# t#e approac# of buildin$bac6-better and inte$rated di!a!ter ri!6 mana$ement" ou$#t to be a ma8or priorit for %&'" and not a nic#e-product0 *#e in!titution #a! made !iGable di!a!ter re!pon!e inve!tment! in re#abilitation and recon!truction follo;in$ di!a!ter!0 It no; need! to !cale up it! contribution to prevention b inve!tin$ muc# more in climate c#an$e adaptation" climate c#an$e miti$ation" and di!a!ter ri!6 mana$ement0 4#ile ener$ #a! made pro$re!! t#rou$# inve!tment! in efficienc and rene;able!" tran!port need! to $o muc# furt#er in !#iftin$ from con!tructin$ road! to alternative! !uc# a! rail! and ;ater;a !0
@0
%&' #a! provided con!iderable !upport for re$ional inte$ration" primaril b focu!in$ on infra!tructure t#at !upport! re$ional p# !ical connectivit 0 %&' i! uni<uel po!itioned to pla a !i$nificant role in re$ional public $ood! in ;#ic# countrie! individuall tend to underinve!t0
*o rai!e it! impact on re$ional cooperation and inte$ration" %&' need! to move be ond !upport for cro!!-border road! and tran!mi!!ion line!" and increa!e !upport for re$ional public $ood! t#rou$# lendin$" 6no;led$e e>c#an$e" and polic dialo$ue0 9riorit area! include food !ecurit " trade facilitation" and natural re!ource mana$ement" includin$ di!a!ter miti$ation0
40
Re!ult!-oriented public !ector mana$ement i! a prere<ui!ite to !imultaneou!l fo!terin$ economic $ro;t# ;#ile en!urin$ !ocial inclu!ion and environmental !u!tainabilit 0 Good $overnance i! al!o e!!ential for a polic and re$ulator environment t#at enable! t#e private !ector to flouri!#" includin$ t#rou$# public=
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%&' need! to !u!tain it! operational !upport for $overnance" and be re!pon!ive to $ro;in$ demand for !uc# !upport" includin$ from middle-income countrie!0 %&' al!o need! to do more to #elp addre!! ot#er critical con!traint! to private !ector inve!tment and activit " includin$ bu!ine!! impediment! faced b !mall bu!ine!!e!" and female and rural entrepreneur!" t#rou$# !upport for education" finance !ector development" infra!tructure reform!" and reform! t#at improve competition and !tren$t#en propert ri$#t!0
C0
+perational !electivit mu!t be a mean! to ac#ievin$ better development outcome!" rat#er t#an a mec#anical $oal0 ' !ettin$ a tar$et for core area!" %&' #a! con!i!tentl e>ceeded it! intended focu! on infra!tructure" to t#e detriment of ot#er area!0 In t#i! re$ard" Independent Evaluation !upport! t#e propo!ed tar$eted increa!e! in #ealt# and education operation! a! a !tep in t#e ri$#t direction0 % more important ob8ective ;ould be to capitaliGe on ! ner$ie! acro!! area!Hfor e>ample" tran!port and mar6et developmentE !anitation and #ealt#E education and a$riculture0
In rebalancin$ t#e portfolio" %&' ou$#t to move a;a from a B0I=20I tar$et" and p#a!e out t#e coreJnon-core di!tinction0 Suc# rebalancin$ entail! droppin$ t#e infra!tructure !#are from over K0I of recent ear!0 En$a$ement at t#e countr level ;ould be driven b a countr (! de!ired development outcome! rat#er t#an b uniform corporate tar$et!0 *#i! re<uire! pro$ram! t#at !ee6 lin6! and ! ner$ acro!! !ector!" collaboration ;it# development partner!" and !upport for $overnance and t#e private !ector0
D0
%c#ievin$ +utcome!
%lon$!ide a number of improvement! in portfolio performance" t#e re!ult of pro8ect! #a! con!i!tentl fallen !#ort of t#e B0I tar$et !ucce!! rate0 *#i! report call! for effort! to rai!e pro8ect performance" e!peciall on t#e evaluation criteria of effectivene!! and !u!tainabilit 0 'ot# criteria are #eavil influenced b t#e level of effort made on pro8ect !upervi!ion" includin$ di!bur!ement and procurement" ;#ic# #a! been a ;ea6ne!! of %&' operation!0 *#e needed action! are li6el to var acro!! area!" a! evaluation! #ave !#o;n0 )oreover" deliverin$ outcome! on comple> c#allen$e! call! for innovation and ri!6 ta6in$" and bot# operation! and Independent Evaluation mu!t encoura$e t#i!0
*o improve t#e ac#ievement of development outcome!" %&' ;ill need to !tren$t#en implementation !upervi!ion and en!ure t#e !u!tainabilit of it! operation!" particularl in infra!tructure0 Increa!in$ t#e u!e of re!ult!-ba!ed lendin$ to finance tran!port" for e>ample" ;ould facilitate movin$ be ond repeater con!truction pro8ect! to ;ider !upport for operation! and maintenance0
viii
K0
*eam; *eam;or6
4#ile !taff repre!ent a $reat !tren$t# of t#e or$aniGation" t#e fra$mentation of t#eir !6ill! and 6no;led$e acro!! %&' call! for a revie; of t#e effectivene!! of t#e or$aniGation(! !tructure in deliverin$ re!ult!0 *#e lac6 of a critical ma!! of e>perti!e" t#e di!per!ion of available talent" and t#e difficult of #arne!!in$ talent ;#en and ;#ere it i! needed mo!t" are often identified i!!ue! in ob!ervation! of or$aniGational performance0 9ro8ect team! need improved acce!! to t#e be!t of %&' 6no;led$e and $lobal $ood practice!" ;#ile t#e team! need to !tren$t#en t#eir contribution! to or$aniGational learnin$0 %! more countrie! move into middle-income !tatu!" ne; 6no;led$e !ource! become available t#at can be of broad benefit" includin$ to lo;erincome countrie!0 Furt#ermore" t#e increa!e in t#e !taff !iGe of %&' re!ident mi!!ion! #a! not been accompanied b a corre!pondin$ tran!fer of deci!ion-ma6in$ aut#orit 0 4#ile t#e direction !#ould be !eamle!! team deliver acro!! %&'" t#e proportion of operation! admini!tered b re!ident mi!!ion! 2mea!ured b t#e number of loan!" $rant! and tec#nical a!!i!tance pro8ect! admini!tered3 fell to @0I in 2012" from @4I in 200A0
Stron$er incentive! can promote ;or6 acro!! boundarie! and #elp addre!! !6ill !#orta$e! in certain area!0 Re;ard! could promote team-ba!ed pro8ect deliver " ;it# team! #eld accountable for outcome!0 Re$ional department! could ta6e differentiated approac# in decentraliGin$ operation! to meet t#e diver!e demand! and prioritie! of lo;-income countrie!" fra$ile and conflict-affected !ituation!" and middle-income countrie!0 *#e c#an$in$ development land!cape call! for a !tron$er role for %&' a! a bro6er of 6no;led$e0
ix
10 Inclu!ion and 9overt : Ine<ualit #a! increa!ed for more t#an B0I of t#e re$ion(! population" and va!t povert remain!0 20 Climate C#an$e" Environment" and Re!ilience: Runa;a climate c#an$e and ;or!enin$ environmental and di!a!ter trend! outpace t#e re!pon!e0 @0 Re$ional Cooperation and Inte$ration: %&'(! con!iderable !upport for re$ional inte$ration and cooperation #a! been concentrated on p# !ical connectivit 0
40 Governance and 9rivate Sector &evelopment: *#e <ualit of $overnance" includin$ control of corruption" #a! !ta$nated" ;#ile in!ufficient !upport #a! been $iven to inclu!ive $ro;t# b private !ector operation!0 C0 +perational Focu! and S ner$ : *ar$et! lead to an unintentional over!#ootin$ of infra!tructure at t#e e>pen!e of ot#er vital area!0 D0 %c#ievin$ +utcome!: *#ere i! a need to improve operational performance" in particular ;it# re!pect to effectivene!! and !u!tainabilit 0 K0 *eam;or6: Fra$mentation of !taff !6ill! and 6no;led$e acro!! %&' compromi!e! t#e in!titution(! effectivene!! in deliverin$ re!ult!0
%n Evolvin$ :and!cape
*#e panel #i$#li$#ted critical factor! affectin$ development in t#e re$ion0 +n t#e po!itive !ide" %!ia #a! !ucceeded in eliminatin$ #alf t#e ;orld(! ab!olute povert and e>pandin$ it! middle cla!!" and de!pite recurrin$ cri!e! i! poi!ed to become t#e center of t#e $lobal econom 0 )oreover" t#ere i! $ro;in$ public intere!t and political !upport for improvin$ $overnance and tac6lin$ t#e mo!t !eriou! t#reat!" mo!t notabl ine<ualit " climate c#an$e" and environmental de$radation0 % ne; !en!e of ur$enc for rai!in$ development outcome! #a! emer$ed and t#e potential for continued $ro;t# and development remain! $enerall !tron$0 %! one paneli!t !tated" ,%!ia #a! t#e re!ource!" tec#nolo$ical pro;e!! and collective ;ill to eliminate bot# povert and #un$erM Given t#i! rate of pro$re!!" eliminatin$ e>treme povert b 20@0 i! ;ell ;it#in reac#0. 'ut !u!tainin$ pro$re!! and ac#ievin$ t#e full potential of t#e re$ion ;ill not be ea! 0 *#ere are man c#allen$e!" and !omeHli6e runa;a climate c#an$eHare alread impactin$ t#e re$ion0 Follo;in$ t#e !ame development pat#" ;it# it! ne$ative environmental and !ocial e>ternalitie!" ;ould be incrementall co!tl 0 )an people continue to !uffer variou! form! of deprivation0 %! a paneli!t ar$ued" ,*#e continuation of povert and #un$er in t#e re$ion" ;#ic# continue! to e>perience one of t#e fa!te!t economic $ro;t# rate! in t#e ;orld" i! unacceptable0. *#e pattern of $ro;t# #a! not been optimal" ;it# inade<uate emplo ment $eneration and inclu!ion of ;omen" out#" and mar$inaliGed !e$ment! of !ociet 0 *#e !#are of ;omen in non-a$riculture emplo ment remain! lo; in man countrie!0 Even ;#ere $ro;t# #a! created 8ob!" man are in le!!-productive area! ;it# poor ;or6in$ condition!0 % paneli!t noted t#at" ,4it# a lac6 of decent 8ob! in t#e or$aniGed !ector!" lar$e number! of out# are mi$ratin$ from traditional occupation! to citie! loo6in$ for ;or6" but end up in lo;-paid informal !ector ;or60. Ine<ualit i! a real and $ro;in$ concern0 In addition to income ine<ualit " di!paritie! in education" #ealt# care" food !ecurit " #ou!in$" and acce!! to !afe ;ater demand $reater attention0 *#e!e multiple form! of deprivation reinforce eac# ot#er"
xii
Recurrent economic and environmental !#oc6! #ave e>po!ed t#e inade<uac of !ocial protection ! !tem! in t#e re$ion0 Government! and t#eir development partner! mu!t do more to !afe$uard t#eir mo!t vulnerable t#rou$# !tron$er !afet net! and ot#er mea!ure!0 &urin$ cri!e!" a! one paneli!t noted" ,Countrie! did better in minimiGin$ dama$e if t#e #ad a !afet net ! !tem ;#ic# can be <uic6l implemented0 )ore ;or6 need! to be done in advance of a cri!i!0. &ebt !u!tainabilit i! a $ro;in$ concern in !ome countrie!0 +ne paneli!t !tre!!ed t#at t#i! ,i! particularl important for fra$ile !tate! and !mall i!land !tate! in t#e 9acific0. For !everal countrie!" capacit to !ervice public debt" includin$ debt to %&'" i! a c#allen$e" particularl ;it# fi!cal volatilit 0 Improvin$ infra!tructure remain! a priorit " but complementar noninfra!tructure inve!tment! are re<uired to ma>imiGe return!0 Su!tainabilit and maintenance of infra!tructure remain ;ea6" e!peciall in fra$ile and i!land !tate! ;#ere re!ource! and capacitie! are limited0 Improvin$ t#e inclu!ivene!! impact! of infra!tructure i! e<uall important0 *#e!e c#allen$e! are comple>" interlin6ed" and in !ome ca!e! inten!if in$" outpacin$ effort! b countrie! and t#eir development partner! to addre!! t#em0 %t t#e !ame time" t#ere i! $ro;in$ momentum for $reater participation b people in addre!!in$ t#e!e c#allen$e!0 *#i! brin$! t#e re$ion and it! development in!titution! to a critical 8uncture0 %! one paneli!t de!cribed it: ,%!ia !tand! at t#e cu!p of it! ne>t bi$ tran!formation a! it continue! to ret#in6 and reinve!t in it!elf0.
Some directional and or$aniGational !#ift! are e!!ential to improvin$ %&'(! re!pon!ivene!! and effectivene!!0 4it# t#e ever-$ro;in$ t#reat of climate c#an$e" t#e panel !tron$l encoura$ed %&' to en#ance !upport for di!a!ter ri!6 mana$ement and buildin$ re!ilience0 %! one ar$ued" ,Inve!tment in re!ilience mu!t become a core bu!ine!! of %&'0. *#i! include! !u$$e!tion! to !tren$t#en infra!tructure di!a!terproofin$ and e>pand ri!6 in!urance pro$ram!0 *#e need to #elp countrie! build re!ilience i! no; ,an over;#elmin$ priorit 0.
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C7%9*ER 1
40 4it# t#e adoption of Strate$ 2020" %&' reaffirmed it! vi!ion of an %!ia and 9acific re$ion free of povert " and it! mi!!ion to #elp developin$ member countrie! reduce povert and improve livin$ condition! and <ualit of life0 %&'(! vi!ion and mi!!ion are to be ac#ieved t#rou$# a multidimen!ional frame;or6 compri!in$ t#ree !trate$ic a$enda!E five driver! of c#an$eE differentiated approac#e! to %&'(! four main t pe! of developin$ member countrie!E and five core 2and t#ree non-core3 operational area! 2plu! t#ree ot#er area! of operation!30 )oreover" Strate$ 2020 pled$e! to
1
%&'0 200B0 Strate$ 2020: *#e :on$-*erm Strate$ic Frame;or6 of t#e %!ian &evelopment 'an6" 200B= 20200 )anila0 For more detail! on t#e )*R" refer to: #ttp:JJ;;;0adb0or$J!trate$ -2020-mid-term-revie;
4it# Strate$ 2020" %&' reaffirmed it! vi!ion of an %!ia and 9acific re$ion free of povert
@ 4
%&'0 200D0 )edium-*erm Strate$ II" 200D=200B0 )anila0 *#e initial re!ult! frame;or6 ;a! revi!ed to reflect le!!on! from t#e fir!t C ear! of implementation0
+n +sia and #aci"ic region "ree o" po erty 'elp DMCs reduce po erty and impro e li ing conditions and .uality o" li"e
S&R+&E*/ 2020
0 Strategic +gendas En ironmentally Sustaina1le *ro2th !nclusi e *ro2th Regional !ntegration
*ender E.uity
5no2ledge Solutions
#artnerships
*raduated DMCs
Middle7!ncome Countries
Lo2er7!ncome Countries
!n"rastructure
En ironment
Education
4perational *oals
!nstitutional *oals
Results Frame2or)
,;
<; +lthough po erty reduction has progressed at an unprecedented rate in +sia and the #aci"ic% the region remains 3 home to 1;<6 1illion people 860= o" the population9 2ho li e on less than >2;00 a day; &his group includes ?00 million people 2ho li e in e@treme po erty% on less than >1;23 a day; !ncome disparities ha e gro2n in the 12 economies that account "or A0= o" the regionBs population; From the mid71990s to the late 2000s% the a erage *ini coe""icient "or the region as a 2hole 2orsened "rom 09 to < 6<% or 1y 1;6= per year; *ro2th has not generated enough decent% producti e employment; +s a conse.uence% a1out <0= o" the 2or)ers in +sia and the #aci"ic are
+lthough po erty reduction has progressed% the region remains home to 1;<6 1illion people 2ho li e on less than >2;00 a day
3 <
+ comprehensi e discussion o" de elopment changes in +sia and the #aci"ic is also included in the M&R; +D,; 2012; +sian De elopment 4utloo) 2012: Con"ronting Rising !ne.uality in +sia; Manila;
*#e re$ion al!o face! $ro;in$ nonnon-income ine<ualit " notabl in education and #ealt#
K0 *#e re$ion al!o face! $ro;in$ non-income ine<ualit " notabl in education and #ealt#0 %lt#ou$# acce!! to ba!ic education #a! improved mar6edl " t#ree nation! in t#e re$ion #ave out-of-!c#ool population! t#at remain amon$ t#e #i$#e!t in t#e ;orld0 %cro!! t#e re$ion" ;omen !till face ;ide deficit! in education and" e!peciall " #ealt#0 In!ufficient antenatal care" and deliverie! t#at are over!een b un<ualified medical per!onnel" and contribute to #i$# maternal mortalit 0 *#i! i! t#e leadin$ cau!e of deat# amon$ adole!cent $irl! acro!! t#e re$ion" and t#e ma8or rea!on for lo; female life e>pectanc " particularl in Sout# %!ia0 Income and non-income ine<ualit " moreover" are mutuall reinforcin$" leavin$ t#e A00 million people livin$ on bet;een -102C and -2000 a da increa!in$l vulnerable to fallin$ bac6 into e>treme povert 0 20 Environmental Su!tainabilit
B0 E>pandin$ demand for natural re!ource!" accompanied b un!u!tainable and inefficient re!ource u!e pattern!" #a! led to conver$in$ economic" re!ource" and environmental c#allen$e!0 )an countrie! are increa!in$l concerned about t#e environmental impact! of $ro;t# a! it #a! been pur!ued to date0 *#e!e include ri!in$ urban air and ;ater pollutionE and $ro;in$ !oil ero!ion" de!ertification" and ;ater !carcit 0 *#e rate of $ro;t# in $reen#ou!e $a! emi!!ion! #a! al!o accelerated" mirrorin$ t#e trend! in overall material and ener$ u!e" ;it# %!ian countrie! e>pected to $enerate 4CI of $lobal ener$ -related emi!!ion! b 20@00 *#e!e trend!" coupled ;it# rapid urbaniGation" climate c#an$e" and defore!tation" po!e a t#reat to future development outcome!0 A0 Citie! in %!ia are $ro;in$ at an unprecedented paceE t#e re!ultin$ con$e!tion" ;a!te" pollution" and a!!ociated #ealt# impact! remain 6e c#allen$e! in !u!tainin$ urban development0 +ne important manife!tation of t#i! urbaniGation trend i! a decline in inve!tment! in a$riculture and rural development0 *#i! #a! re!ulted in a corre!pondin$ lac6 of opportunitie! in t#e re$ion(! rural area!" ;#ere t#e ma8orit of t#e poor live 2footnote K30
4it# a fourfold ri!e in flood! and !torm!" climate c#an$e #a! become an imminent and e>i!tential dan$er
100 Climate c#an$e i! a !eriou! t#reat to t#e economic pro!perit of t#e re$ion0B 4it# a fourfold ri!e in flood! and !torm!" climate c#an$e #a!" in fact" become an imminent and e>i!tential dan$er in a $ro;in$ number of countrie!0 %nd ;#ile t#e effect! of environmental de$radation and climate c#an$e affect ever one" t#e poor are t#e lea!t able to eit#er miti$ate or adapt" addin$ anot#er la er to t#eir vulnerabilit 0 110 Climate c#an$e t#reaten! fore!t! on an alarmin$ !cale" et defore!tation i! not #i$#li$#ted a! !uc# in t#e )*R" alt#ou$# it account! for one-fift# of all $reen#ou!e $a! emi!!ion!0 *#e ma8orit of countrie! in Sout#ea!t %!ia #ave been e>po!ed to a net lo!! of t#eir natural fore!t! durin$ 2000=2012" in turn leadin$ to reduced biodiver!it 0A *#e $loball !i$nificant biodiver!it and natural re!ource! of %!ia and t#e 9acific provide
K
/nited Nation! Economic and Social Commi!!ion for %!ia and t#e 9acific" /nited Nation! &evelopment 9ro$ramme" and %&'0 %!ia 9acific %!piration!: 9er!pective! for a 9o!t-201C &evelopment %$enda 2%!ia9acific Re$ional )illennium &evelopment Goal! Report 2012J201@30 10 *#oma!" N0R0 %lbert" and R0 9ereG0 201@0 Climate-Related &i!a!ter! in %!ia and t#e 9acific0 Economic! 4or6in$ 9aper Serie! @CB0 )anila: %&'0 7an!en" et al0 201@0 7i$#-Re!olution Global )ap! of 21!t-Centur Fore!t Cover C#an$e0 Science0 @42 2D1D030 9p0 BC0-BC@0 #ttp:JJeart#en$inepartner!0app!pot0comJ!cience-201@-$lobal-fore!t
1@0 7i$#-<ualit " re!ult!-focu!ed public !ector mana$ement 29S)3 i! a prere<ui!ite to addre!!in$ t#e triple bottom line" ;#ic# i! a fundamental polic c#allen$e for %!ia and t#e 9acific: !imultaneou!l !u!tainin$ economic $ro;t# ;#ile en!urin$ !ocial inclu!ion and environmental !u!tainabilit 0 In addition" $overnance i! a 6e component of t#e enablin$ environment for 9S&0 Governance indicator! !u$$e!t t#at t#e overall <ualit of $overnance in t#e re$ion #a! !ta$nated durin$ 200@=2012 2Fi$ure 230 :imited pro$re!! on t#e control of corruption and $overnment effectivene!! i! off!et b !li$#t deterioration! in voice and accountabilit " re$ulator <ualit and t#e rule of la;0 %! a con!e<uence" t#e re$ion !till #a! a limited abilit to effectivel re!pond to comple> polic c#allen$e!" provide public !ervice! and ac#ieve development re!ult! and outcome!0 Fi$ure 2: %vera$e 9ercentile Ran6in$ of %&' &evelopin$ )ember Countrie! 200@=2012 200@ 2012 50.00 45.00 40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00
2003 2012
10
11
%&'0201@0 Environment +perational &irection! 201@=2010H9romotin$ *ran!ition! to Green Gro;t# in %!ia and t#e 9acific0 )anila0 90 9etri" and 10 *#oma!0 201@0 &evelopment Imperative! for t#e %!ian Centur 0 %&' Economic! 4or6in$ 9aper Serie! @D00 )anila: %&'0
C0
4#ile Strate$ 2020P! a$enda! remain relevant" t#e need to be updated operationall % more balanced portfolio to deliver inclu!ive outcome! i! needed
1C0 4#ile Strate$ 2020(! t#ree !trate$ic a$enda! remain relevant to %!ia and t#e 9acific" t#e need to be updated operationall to deliver !tron$er outcome! in t#e face of #ei$#tened c#allen$e!0 In t#i! re!pect" %&'(! deci!ion to carr out a )*R of Strate$ 2020 i! commendable0 *#e revie; i! a valuable opportunit to dra; on le!!on! from t#e fir!t C ear! of t#e !trate$ (! implementation" includin$ t#o!e from evaluation0 %&' mu!t !eiGe t#i! opportunit to revie; e>perience and ma6e t#e c#an$e! nece!!ar to deliver better re!ult!0 10 *#e *#ree Strate$ic %$enda!
1D0 Inclu!ive $ro;t#0 Succe!!ive $uideline! #ave !tre!!ed t#e contribution of t#e portfolio to inclu!ive $ro;t#Ht#e fir!t !trate$ic a$enda of Strate$ 2020Ht#rou$# t#ree pillar! of intervention!: #i$# $ro;t# mainl 2pillar 13" acce!! to opportunitie! 2;#ile !ometime! al!o addre!!in$ $ro;t#3 2pillar 23" and !ocial protection 2pillar @30 Given t#e ob!erved trend of ri!in$ ine<ualit in %!ia" %&' !#ould aim for $reater inclu!ion acro!! it! !overei$n and non-!overei$n operation! in all !ector!0 % clear and monitored focu! need! to be $iven to includin$ t#e poor 2i0e0" t#e lo;er #alf of t#e income di!tribution3 in all %&' operation!0 *o t#i! end" a more balanced portfolio of infra!tructure and !ocial and environmental operation! to deliver inclu!ive outcome! i! needed" alon$ ;it# $reater balance acro!! pillar! 1" 2" and @0 C#apter 2 provide! more di!cu!!ion of t#e inclu!ive $ro;t# a$enda0 1K0 Environmentall !u!tainable $ro;t#0 *#e ur$enc for t#e !econd !trate$ic a$endaHenvironmentall !u!tainable $ro;t#Hi! #ei$#tened b !evere environmental de$radation and more fre<uent climate-related di!a!ter!0 'ot# public and private !ector ener$ portfolio! #ave !een an appropriate increa!e in climate-friendl inve!tment!" but a !imilar increa!e #a! not et occurred in t#e tran!port portfolioE overall" t#e problem! far outpace t#e re!pon!e" from %&' and t#e re$ion0 Given t#e focu! of %&' on infra!tructure" and t#e re$ion(! e>treme vulnerabilit to climate di!a!ter!" Independent Evaluation loo6! to %&' to ma6e a far-reac#in$ operational contribution in confrontin$ climate c#an$e adaptation" climate miti$ation" and di!a!ter ri!6 mana$ementHb tappin$ t#e va!t climate fund! and levera$in$ it! o;n re!ource!0 *#ere are po!itive e>ample! in t#e private !ector and rene;able ener$ " but t#e need to be va!tl e>panded0 *#e recent evaluation of %&'(! !upport for t#e )illennium &evelopment
12
%&'0 201@0 %!ian &evelopment +utloo6 201@ /pdate: Governance and 9ublic Service &eliver 0 )anila0
*#ere i! a need to balance better t#e infra!tructure and in!titutional a!pect! of re$ional connectivit
210 Governance0 %ll t#ree a$enda! re<uire $ood $overnance" but $overnment effectivene!! remain! a ma8or concern in t#e re$ion" a! evidenced b variou! countr a!!i!tance pro$ram evaluation!0 It i! e!!ential t#at %&' maintain !upport to en#ance $overnance in t#e public !ector t#rou$# it! !ector operation!" 9S) operation!" and tec#nical a!!i!tance 2*%3 pro8ect!0 %n on$oin$ evaluation of %&'(! !upport for $ood $overnance find! continued demand for %&' !upport in t#i! area01B
1@
IE&0 201@0 *#ematic Evaluation Stud : %&' Support for %c#ievin$ t#e )illennium &evelopment Goal!0 )anila: %&'0 14 *#e concept of ,buildin$ bac6 differentl and el!e;#ere. #a! recentl been introduced b polic ma6er! in t#e di!a!ter ri!6 mana$ement communit 0 1C IE&0 Fort#comin$0 *#ematic Evaluation Stud : Re$ional Cooperation and Inte$ration0 )anila: %&'0 1D IE&0 201@0 4or6in$ 9aper: Food Securit C#allen$e! in %!ia0 )anila: %&'0 1K IE&0 200B0 Re$ional Cooperation and %!!i!tance 9ro$ram Evaluation: Greater )e6on$ Subre$ion" )aturin$ and )ovin$ For;ard0 )anila: %&'0 1B IE&0 Fort#comin$0 *#ematic Evaluation Stud on %&' Support for En#ancin$ Governance in it! 9ublic Sector +peration!0 )anila: %&'0
*#e tar$et of B0I of operation! in core area! #a! led to an overemp#a!i! on infra!tructure
%&'(! !elective en$a$ement at t#e countr level !#ould be driven b a countr (! 240 de!ired development outcome!" includin$ 6no;led$e need!" and b opportunitie! for partner!#ip!" rat#er t#an b uniform operational tar$et!" !et b %&' on a re$ional ba!i!0 *#e top-do;n tar$et of B0I of operation! in five core area! #a! in practice led to a con!i!tent overemp#a!i! on infra!tructure to t#e detriment of non-core area!" ;#ic# can be e!!ential for development outcome!0 % lar$e number of countr partner!" moreover" #ave a!6ed for increa!ed !upport in t#e non-core area! of #ealt#" a$riculture and inte$rated di!a!ter ri!6 mana$ement0 %&' !#ould move a;a from t#i! tar$et and t#e core or non-core di!tinction0 2C0 In addition" t#e current climate of con!trained fi!cal !pace in traditional donor countrie! #a! $iven ne; ur$enc to t#e <ue!t for innovative partner!#ip! and financin$ approac#e!" notabl includin$ t#e levera$in$ of private fund! 2'o> 130
1A
20
IE&0 Fort#comin$0 *#ematic Evaluation Stud : %&' Support for Stren$t#enin$ t#e Enablin$ Environment for 9rivate Sector &evelopment0 )anila: %&'0 IE&0 20120 Special Evaluation Stud on 5no;led$e 9roduct! and Service!: 'uildin$ a Stron$er 5no;led$e In!titution0 )anila: %&'0
2D0 It i! imperative to maintain !6ill! in 6e operational area!" and deplo t#em effectivel " et t#e current or$aniGational !etup #a! led to a fra$mentation of !6ill! and 6no;led$e" unclear mandate!" and coordination c#allen$e!0 % revie; of t#e or$aniGational !tructure" includin$ of t#e potential $ain! of decentraliGation" ;ould be timel to addre!! t#e!e i!!ue! and en!ure t#at t#e appropriate talent i! a!!i$ned in t#e ri$#t po!ition!" at t#e ri$#t time0 2K0 'uildin$ on recent improvement!" ever effort i! no; needed to ac#ieve 2and !urpa!!3 t#e $oal of B0I !ucce!!ful pro8ect!0 *#e $reate!t effort !#ould be directed to outcome! and !u!tainabilit " ;#ic# are t#e criteria mo!t relevant to impact0 In !um" to deliver better re!ult! ;it# limited re!ource!" %&' need! to #arne!! all it! re!ource!H includin$ at #ead<uarter! and in countrie!" in public and private !ector!" and ;#et#er focu!ed on countr or t#ematic ;or60 *#e drive of %&' leader!#ip to pur!ue $reater development outcome! remain! 6e E accountabilit for outcome! 2rat#er t#an output!3 ;ould be a far reac#in$ c#an$e0 %n emp#a!i! on 6no;led$e buildin$ and !#arin$ i! a natural ;a to ma>imiGe development return!0 *#e!e approac#e! can be underpinned b performance evaluation" reco$nition" and re;ard ! !tem!0 % more detailed di!cu!!ion on t#i! i! included in C#apter D0
'uildin$ on recent improvement!" ever effort i! no; needed to ac#ieve t#e $oal of B0I !ucce!!ful pro8ect!
C7%9*ER 2
Inclu!ive Gro;t#
Economic $ro;t# in developin$ countrie! in %!ia #a! been remar6able" but not inclu!ive
2B0 Economic $ro;t# in developin$ countrie! in %!ia !ince t#e earl 1AA0! #a! been remar6able" but not inclu!ive021 9overt " di!paritie!" and ot#er c#allen$e! remain perva!ive0 *#e re$ion i! !till #ome to t#ree-fift#! of t#e ;orld(! undernouri!#ed and #a! t#e lar$e!t number of poor and deprived people0 Ine<ualit #a! $ro;n acro!! mo!t part! of t#e re$ion and i! no; more pronounced in %!ia t#an in mo!t ot#er developin$ re$ion!022 2A0 9er!i!tent ine<ualit can impede $ro;t# pro!pect! and !u!tainabilit 0 7i!torical e>perience" a! illu!trated b 5uGnet! curve 2Fi$ure @3" !u$$e!t! t#at income $ro;t# #a! correlated !o far ;it# lo;er ine<ualit over time0 7o;ever" t#i! proce!! ma not nece!!aril continueE even if it doe!" it ma come too late for man %!ian countrie!" ma6in$ t#e traditional !e<uencin$ of $ro;in$ fir!t t#en addre!!in$ ne$ative e>ternalitie! later #i$#l ri!6 02@
21
22
2@
*#i! c#apter dra;! #eavil on findin$! from t#e on$oin$ IE& !tud " IE&0 Fort#comin$0 *#ematic Evaluation Stud : %&'(! Support for Inclu!ive Gro;t#0 )anila: %&'0 'roadl defined" inclu!ive $ro;t# i! $ro;t# ;it# !ocial e<uit " or a $ro;t# proce!! in ;#ic# all !e$ment! of t#e population can participate" e!peciall t#e poor" and it concern! t#e impact of economic $ro;t# in reducin$ povert and ine<ualit " and broadenin$ economic opportunit 0 *#i! differ! from pro-poor $ro;t#" ;#ic# deal! onl ;it# t#e effectivene!! of $ro;t# in reducin$ povert 0 International )onetar Fund0 201@0 *#e Elu!ive ?ue!t for Inclu!ive Gro;t#: Gro;t#" 9overt " and Ine<ualit in %!ia0 I)F 4or6in$ 9aper 49J1@J1C20 4a!#in$ton" &C0 %&'0 201@0 &evelopment Imperative! for t#e %!ian Centur 0 %&' Economic! 4or6in$ 9aper Serie!" No0 @D00 )anila0
Inclusi!e )ro$th
Fi$ure @: *#e 5uGnet! Curve for Gini Coefficient!" 200A 2per capita income in -000(!3 70 60 50
Gini coefficient
11
40 30 20 10 2.0 2.5
Log (Per capita income in $)
3.0
3.5
4.0
4.5
Note:
diamond! L %!ian countrie!" !<uare! L ot#er countrie!0 *#e central curve i! a <uadratic function of lo$2income per capita3" plotted alon$ t#e #oriGontal a>i!0 +t#er t;o curve! !#o; QJ= one !tandard error0 Source!: %&'0 201@0 &evelopment Imperative! for t#e %!ian Centur 0 %&' Economic! 4or6in$ 9aper Serie! No0 @D00 )anilaE and calculation! ba!ed on 4orld 'an6 data0
@00 &i!paritie! in income di!tribution coe>i!t ;it# ine<ualit in opportunitie!" in particular acce!! to ba!ic !ocial !ervice!0 Recent a!!e!!ment! of %!ia(! pro$re!! in ac#ievin$ t#e )&G! find t#at ;#ile acce!! to ba!ic education #a! $enerall improved" acce!! to #ealt# care" ;ater and !anitation" !afet net!" and emplo ment opportunitie! !till la$!0 *#e!e area! re<uire $reater attention and re!ource! from countrie! and t#eir development partner! 2footnote 1@30 @10 Recurrent economic !#oc6! and natural di!a!ter!" t#reat! to food !ecurit " a lac6 of 8ob! in t#e face of a rapidl $ro;in$ labor force" and rapid urbaniGation are factor! t#at ;ill affect t#e re$ion(! abilit to bot# $ro; and ac#ieve $reater inclu!ion0 Furt#ermore" t#e re$ion i! al!o far from ac#ievin$ $ender e<ualit " ;it# ;omen in man countrie! in %!ia and t#e 9acific !till facin$ ;ide deficit! in education and #ealt#0 In combination t#e!e c#allen$e! point to an even $reater need to focu! on inclu!ivene!!Hand for more effective !upport for t#i! !trate$ic a$enda0
%0
%&'(! Re!pon!e
@20 Reco$niGin$ t#at povert reduction i! impacted b bot# t#e pace and pattern of $ro;t#" Strate$ 2020 made inclu!ive $ro;t# an in!titutional priorit " and provided a ba!ic frame;or6 built on t#ree mutuall -reinforcin$ pillar!: #i$#" !u!tainable $ro;t# 2pillar 13E broader acce!! to opportunitie! 2pillar 23E and !ocial protection and !afet net! 2pillar @30 'ut implementin$ t#i! a$enda #a! been c#allen$in$0 *#ere #a! been confu!ion ;#et#er Strate$ 2020 committed to !upportin$ an of t#e pillar!" or all of t#em0 *#e frame;or6 provided no clear indicator! or tar$et!" ma6in$ it difficult to incorporate inclu!ive $ro;t# element! into t#e pro8ect cla!!ification ! !tem and reflect t#e!e in t#e corporate re!ult! frame;or60 )oreover" Strate$ 2020(! prioritiGation of five core operational area!24Hin t#e ab!ence of clear tar$et! for ot#er area!H
24
Strate$ 2020(! five priorit area!" ;#ic# are to account for B0I of operation!" are infra!tructure" environment" re$ional cooperation and inte$ration" finance !ector development" and education0
12
@@0 )ore attention to ine<ualit ;it#in t#e inclu!ive $ro;t# a$enda i! re<uired" $iven t#at ine<ualit #a! ri!en in man countrie!0 *#e ori$inal inclu!ive $ro;t# frame;or6 c#aracteriGed a $ro;t# proce!! a! inclu!ive even ;#ere povert i! declinin$ but ine<ualit i! ri!in$" a! in t#e 9RC and India0 @40 Recent effort! aim to addre!! !ome of t#e!e c#allen$e!0 In 2012" %&' added an indicator on inclu!ive $ro;t# 2;it# t#ree !ub-indicator!3 to t#e re!ult! frame;or6" enablin$ better monitorin$ of pro8ect! !upportin$ inclu!ive $ro;t#0 In 201@HC ear! after adoptin$ t#e inclu!ive $ro;t# a$endaH%&' i!!ued inclu!ive $ro;t# operational $uideline! t#at pre!ent a more refined frame;or6 and $ive better $uidance for !taff0 *#e!e $uideline! do not !u$$e!t #o; muc# emp#a!i! i! to be $iven to eac# of t#e t#ree indicator! and t#e operation! to ;#ic# t#e refer" but !tate t#at pro$re!! on all t#ree pillar! i! re<uired for $ro;t# to be cla!!ified a! inclu!ive" even ;#ile !upport ;ill #ave to be !elective" in line ;it# it! e!tabli!#ed prioritie! and re!ource ba!e02C @C0 Nonet#ele!!" t#e $uideline! do clarif t#at %&' cannot e>clu!ivel !upport 8u!t an of t#e pillar! in a particular conte>t0 &eterminin$ t#e emp#a!i! amon$ t#e t#ree pillar! !#ould be driven mo!tl b t#e countr conte>t" ;#ic# in turn re<uire! !ound inclu!ive $ro;t# dia$no!tic! a! part of pro$ram and countr partner!#ip !trate$ 2C9S3 de!i$n0 @D0 %&' #a! adopted numerou! policie!" plan!" and $uideline! !ince 200B" !ome of ;#ic# clearl reflectHand tr to !upportH t#e a$enda0 For e>ample" t#e 2011 Financial Sector +perational 9lan emp#a!iGe! financial inclu!ion t#rou$# microfinance" rural financial in!titution!" and !upport to !mall and medium-!iGed enterpri!e! 2S)E!302D %ppendi> 2 li!t! ma8or policie!" plan! and $uideline! adopted !ince 200B0 @K0 )ore effort i! needed to deepen and broaden inclu!ive $ro;t# anal tic! in countr !trate$ie!0 % revie; of recent C9S found t#eir anal !e! of countr pro$re!! and con!traint! placed more focu! on $ro;t# 2pillar 13" ;it# limited anal !i! of broadenin$ acce!! to economic opportunitie! and providin$ ade<uate !afet net!02K 4it# t#e e>ception of t#e 9RC" and to a le!!er e>tent )on$olia and *a8i6i!tan" articulation! of inclu!ive $ro;t# in t#e !even countrie! covered b t#e on$oin$ evaluation primaril addre!! $ro;t# and income povert " but $enerall omit di!cu!!ion of acce!! to opportunitie! or !afet net!0 @B0 *#e 2012 <ualit -at-entr 2?%E3 e>erci!e found !imilar re!ult! in it! !ample of C9S adopted in 2010=20110 4#ile it found mo!t C9S !ati!factor in t#eir promotion of inclu!ion" t#i! ;a! ba!ed on more $eneral commitment! to !u!tainable $ro;t# and emplo ment $eneration0 *#e ?%E found t#at mo!t C9S: 2i3 did not clearl addre!! !ocial protection" direct #ealt# care !ervice!" !afet net!" or acce!! to a!!et!E and 2ii3 did not
2C 2D
%&'0 201@0 Guideline! on Inclu!ive Economic Gro;t# in t#e Countr 9artner!#ip Strate$ 0 )anila0 %&'0 20110 Financial Sector +perational 9lan0 )anila0 2K Conducted in connection ;it# IE&(! on$oin$ inclu!ive $ro;t# evaluation
Inclusi!e )ro$th
al;a ! indicate ;#et#er t#e!e area! ;ere ade<uatel !upported b ot#er development partner!0 @A0 +perationall " t#e adoption of t#e inclu!ive $ro;t# a$enda in 200B made virtuall no difference in pro8ect approval! and t#e portfolio0 %&' ;a! to !upport inclu!ive $ro;t# primaril t#rou$# operation! in infra!tructure" education" and ot#er e!!ential !ervice! !uc# a! ;ater and !anitation0 'ut a revie; of loan approval! !#o;! no ma8or di!tributional c#an$e $oin$ bac6 over a decade0 %pproval! #ave remained concentrated in infra!tructureHprimaril tran!port" ener$ " and ;ater !uppl and ot#er municipal infra!tructure !ervice!H;#ic# to$et#er accounted for an avera$e of CCI of t#e portfolio durin$ 2004=200B" and CDI durin$ 200A=201@ 2Fi$ure 430 %&' e!timate! t#at infra!tructure alone 2acro!! all !ector!3 made up !ome DKI of approval! in 200@= 200K" and increa!ed to K2I durin$ 200B=201202B 4#ile infra!tructure can promote inclu!ive $ro;t#" t#i! cannot automaticall be pre!umed 2'o> 230 Fi$ure 4: S#are of %pproval! in Infra!tructure and +t#er %rea! 2004= 2004=201@ 2b value3
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2004 2005 2006 2007 2008 2009 All others 2010 2011 2012 2013 TRA, ENE, WMS
13
4#ile infra!tructure can promote inclu!ive $ro;t#" t#i! cannot automaticall be pre!umed
56%
58% 45%
59%
55% 39%
60%
65%
62%
56%
ENE L ener$ " *R% L tran!port" 4)S L ;ater !uppl " and ot#er municipal infra!tructure !ervice!0 Note: *#e bul6 of infra!tructure inve!tment! compri!e of ENE" *R%" and 4)S pro8ect!0 *#e do;nturn in infra!tructure approval! to @AI in 200A ;a! t#e re!ult of ma8or counter-c clical !upport pro$ram! approved t#at ear0 Source: Independent Evaluation &epartment0
400 For infra!tructure" $iven limited re!ource!" t#e c#oice of pro8ect! !#ould be ba!ed on ma>imiGin$ impact! in term! of 8ob creation" povert reduction" and increa!in$ people(! liveli#ood!0 *#ere !#ould al!o be a concentration of ot#er pro8ect! andJor pro$ram! focu!ed in t#e !ame area !o t#at t#e impact of t#e connectivit i! felt0
2B
14
410 %cro!! t#e t#ree pillar!" %&' e!timate! t#at about D2I of re!ource! #ave !upported t#e $ro;t# pillar durin$ 200B=20120 )ean;#ile" !upport for pillar 2 2acce!! to opportunitie!3 t#rou$# !ector! t#at more directl promote !ocial inclu!ion remained limited" and declined in !ome ca!e!0 Support to education" #ealt#" and a$riculture no; eac# repre!ent onl 2I=@I of approval!" ;it# education 2a core operational area3 and #ealt# allocation! fallin$ !li$#tl over t#e 200@-200K to 200B-2012 period!0 Support to t#e finance !ector 2;#ic# include! !upport for financial inclu!ion3 declined from 1@I of approval! durin$ 200@=200K to BI durin$ 200B=20120
420 Support to !ocial protection and !afet net! 2pillar @3 repre!ented 8u!t 1I of loan approval! over 200B=2012" ba!ed on %&' e!timate!0 %n evaluation of %&'(! implementation of t#e 2001 Social 9rotection Strate$ found !upport durin$ 20022011 limited 2e>cept in cri!i! period!3" ;it# !tand-alone !ocial protection pro8ect! ma6in$ up 8u!t 20CI of approval! over t#e decade02A %&' adopted t#e !trate$ in t#e
2A
IE&0 20120 Special Evaluation Stud : %&' Social 9rotection Strate$ 20010 )anila: %&'0 *#e evaluation cla!!ified intervention! a! !tand-alone if t#e #ad a clear" principal focu! on one or more of t#e five ma8or
Inclusi!e )ro$th
aftermat# of t#e %!ian Financial Cri!i!" ;#ic# e>po!ed ;ea6ne!!e! in !ocial protection pro$ram! acro!! %!ia0 4it# t#e !trate$ " %&' pled$ed to !tren$t#en !ocial protection pro$ram! durin$ non-cri!i! ear! to better prepare countrie! for future !#oc6!0 4#ile t#e evaluation found evidence of t#i! #appenin$ in !ome ca!e!" overall follo;-t#rou$# on t#i! commitment ;a! ;ea60 *#e recent round of cri!e! in 200B=2010 delivered a #ard le!!on" re-e>po!in$ ;ea6ne!!e! in !ocial protection ! !tem! and a$ain #i$#li$#tin$ t#e need for $reater %&' attention to t#i! area0 4@0 4#ile t#e overall compo!ition of t#e portfolio #a! remained lar$el unc#an$ed" t#e proportion of operation! cla!!ified b %&' a! tar$eted 2ver!u! $eneral3 povert intervention! #a! declined !teadil durin$ 200@=201@" ba!ed on IE& anal !i! of %&' pro8ect cla!!ification!0@0 *#e on$oin$ evaluation of inclu!ive $ro;t# find! t#at b amount" tar$eted intervention! compri!ed onl 21I of total operation! !upportin$ inclu!ive $ro;t# durin$ 2000=2012 2Fi$ure C30 From 2000 to 200@" t#e !#are of tar$eted intervention! in inclu!ive $ro;t# operation! ro!e !#arpl " pea6in$ in 200@ ;#en more t#an #alf of pro8ect! !upportin$ inclu!ive $ro;t# fell into t#i! cate$or 0 *#i! ;a! tri$$ered b t#e introduction of t#e 9overt Reduction Strate$ and it! 40I tar$et of lendin$ for povert intervention!0 *#e introduction of t#e En#anced 9overt Reduction Strate$ in 2004 appeared to rever!e t#i! trend" ;it# tar$eted intervention! declinin$ !#arpl to 2@I in 2004 and remainin$ lo; !ince t#en0 440 *#i! !tead decline in tar$eted intervention! i! cau!e for !ome concern" in t#at it !u$$e!t! a dimini!#in$ pro-poor focu! of inve!tment! over time0 *#u!" t#e povert focu! of t#e inclu!ive $ro;t# a$enda ma #ave fallen rat#er t#an increa!ed after adoption of Strate$ 20200 4#ile %&' i! not focu!ed on eradicatin$ e>treme povert " it can ma6e an effort to en!ure t#at t#o!e 8u!t belo; and above t#e povert line can capture t#e benefit! of it! intervention!0 %&'(! !tated focu! under Strate$ 2020 !#ifted from pro-poor $ro;t# to inclu!ive $ro;t#" but a crucial <ue!tion i! ;#et#er t#e !#ift ;a! to inclu!ive $ro;t#" or in practice to 8u!t $ro;t#0 Fi$ure C: 9ercenta$e of +peration! Supportin$ Inclu!ive Gro;t# Cla!!ified a! *ar$eted 9overt Intervention!" 2000= 2000=2012
15
*#e overall overall compo!ition of t#e portfolio #a! remained lar$el unc#an$ed
*#e povert povert focu! of t#e inclu!ive $ro;t# a$enda ma #ave fallen rat#er t#an increa!ed
51% 40% 30% 24% 23% 22% 19% 14% 9% 14% 23% 19% 16%
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
@0
!ocial protection cate$orie!: !ocial a!!i!tanceE !ocial in!uranceE labor mar6etE c#ild protectionE and microJarea-ba!ed !c#eme!" focu!ed mo!tl on one of more area! of !ocial protection0 *ar$eted intervention!: 2i3 !upport povert reduction 2under t#e cate$or povert intervention! in t#e 9overt Reduction Strate$ 3" 2ii3 are located in area! ;it# #i$# concentration! of t#e poor" or 2iii3 !upport ac#ievement of t#e non-income )&G!0
16
4K0 IE&(! 2012 microfinance evaluation found operation! le!! t#an effective in ac#ievin$ re!ult!0@2 Support concentrated on developin$ t#e polic environment and addre!!in$ !uppl !ide con!traint! to !ector $ro;t#" ;it# le!! focu! on demand-!ide i!!ue!" !uc# a! developin$ t#e capacit of t#e poor to acce!! and u!e financial !ervice!" in order to ma6e microfinance more inclu!ive and effective for t#e poor0 Support for pro-poor innovative product! and deliver model! ;a! limited" ;it# little attention to t#e !ocial performance of microfinance operation!0 %! a re!ult" t#e penetration of microfinance amon$ t#e poor remain! lo; 2para0 AA30 )ean;#ile" 9S+&(! dedicated microfinance operation! ;ere mo!tl effective in increa!in$ acce!! to finance for t#e poor" rural area!" and ;omen0
'0
Recommendation!
4B0 C#an$e! t#at #ave ta6en place durin$ 200A=201@" in combination ;it# t#e outloo6 for %!ia" !u$$e!t t#at a focu! on inclu!ion ;ill remain vitall important for t#e re$ion0 %! t#e re$ion(! premier development ban6" and in !ee6in$ to deliver better on t#e triple bottom line" %&' !#ould !upport t#i! a$enda ;it# increa!ed vi$or and effort0 Importantl " %&' could aim to increa!e inclu!ion acro!! it! !overei$n and non-!overei$n operation! in all !ector!0 % clear and monitored focu! need! to be $iven to includin$ t#e poor 2!a " t#e lo;er 40I of t#e income di!tribution3 in t#e re!ult! of operation!0 *#i! re<uire! %&' to !trive for a more balanced portfolio of infra!tructure and !ocial and environmental !ector pro8ect! to deliver inclu!ive outcome!" ;it# better balance acro!! t#e t#ree pillar!0 It al!o re<uire! more attention in pro8ect de!i$n0 %ll pro8ect!" re$ardle!! of t#eir !ector" can contribute 2more or le!!3 to inclu!ive $ro;t#0 *#i! re<uire! careful e> ante a!!e!!ment to determine #o; t#e pro8ect de!i$n can ma>imiGe povert and inclu!ivene!! impact!" a! ;ell a! identification of complementar intervention! to #elp ac#ieve t#e!e outcome!0 4A0 )oreover" inclu!ive $ro;t# i! a mean! for ac#ievin$ t#e overarc#in$ ob8ective of povert reduction0 Inclu!ive $ro;t# involve! all !e$ment! of t#e population" includin$ t#e poor0 % !#ift to inclu!ive $ro;t# al!o re<uire! a concern for ine<ualit "
@1
@2
IE&0 201@0 *#ematic Evaluation Stud : %&' 9rivate Sector +peration!: Contribution! to Inclu!ive and Environmentall Su!tainable Gro;t#0 )anila: %&'0 IE&0 20120 Special Evaluation Stud : )icrofinance &evelopment Strate$ 20000 Sector 9erformance and Client 4elfare0 )anila: %&'0
Inclusi!e )ro$th
and con!ideration of income and non-income dimen!ion! of povert 0 *o !tren$t#en %&'(! deliver on t#e inclu!ive $ro;t# a$enda" t#e on$oin$ evaluation ma6e! t#e follo;in$ recommendation!0 C00 % !imultaneou! focu! on povert and ine<ualit in %&'(! inclu!ive $ro;t# frame;or6 #a! become more nece!!ar $iven %!ia(! c#an$in$ !ocioeconomic land!cape0 Strate$ 2020 ;a! formulated amid optimi!m re$ardin$ t#e re$ion(! pro$re!! in reducin$ povert 0 7o;ever" $ain! 2in term! of rapid $ro;t# and povert reduction3 are no; at ri!6" a! a re!ult of t#e impact of t#e food and financial cri!e! t#at be$an in 200B" and ot#er !#oc6!0 )ore importantl " ine<ualit i! ri!in$ in man countrie!" increa!in$ t#e vulnerabilit of t#e poor and ot#er mar$inaliGed $roup!0 %&' !#ould tailor it! !upport to particular countr need!" but ri!in$ ine<ualit acro!! %!ia and t#e la$ in !ocial protection ! !tem development re<uire! an increa!e in %&' !upport for pillar! 2 and @0 C10 Con!traint! to and opportunitie! for inclu!ive $ro;t# var amon$ economie!0 Strate$ 2020(! B0:20 allocation of !upport for core and noncore operation! ma in !ome ca!e! undermine effort! to addre!! inclu!ive $ro;t#" becau!e of t#e ob!erved cro;din$-out effect0 Infra!tructure" ;#ic# ma6e! up t#e bul6 of t#e core area! of %&' operation!" can contribute to inclu!ive $ro;t#" but ot#er area! of operation! are more directl lin6ed to inclu!ive $ro;t# and t#e reduction of ine<ualit 0 %ccordin$l " %&' !#ould ba!e it! allocation of !upport for inclu!ive $ro;t# in !i$nificant part on !pecific countr conte>t!" in!tead of di!tributin$ !upport bet;een core and noncore area! accordin$ to a fi>ed formula0 C20 9ro8ect! $eared to promotin$ #i$# $ro;t# can contribute to inclu!ive $ro;t# if t#e are de!i$ned ;it# a clear ob8ective of directl benefitin$ lo;er-income $roup!0 For e>ample" infra!tructure pro8ect! t#at connect poor and better-off area!" or road! t#at connect rural area! to mar6et! and urban #ub! can promote inclu!ivene!!0 % !tron$er connection bet;een !trate$ic ob8ective! and pro8ect de!i$n and implementation in t#i! re!pect i! needed0 C@0 Countr team! need to pla a muc# bi$$er role in ! ner$iGin$ %&'(! countr pro$ram! ;it# $overnment pro$ram! and t#e pro$ram! of development partner!0 Selectivit in area! of operation!" ;#ile valuable in !ome re!pect!" ;ea6en! t#eir impact if t#e complementar pro$ram! not underta6en b %&' are al!o not !upported b ot#er!0 For e>ample" an %&'-!upported road pro8ect could promote inclu!ivene!! if it i! part of a plan t#at al!o addre!!e! !c#ool! and #ealt#care center! in t#e !ame area" and receive! !pecial !upport from t#e $overnment and ot#er development partner!0 Furt#er !tren$t#enin$ %&'(! capacit for developin$" facilitatin$" and monitorin$ ! ner$ie! ;it# complementar pro$ram! and pro8ect! of ot#er donor! i! imperative0 C40 *#ere i! a pre!!in$ need for %&' to improve t#e <ualit of inclu!ive $ro;t# anal !i! in C9S" a! t#i! ;ill $uide countr operation!0 %lt#ou$# t#e !taff $uideline! incorporate a !et of indicator! to monitor inclu!ive $ro;t#" t#e!e do not include tar$et! at t#e countr level0 Countr team! mu!t be encoura$ed to adopt countr -level tar$et! for inclu!ive $ro;t# indicator! to #elp improve outcome!0
17
Ri!in$ ine<ualit and t#e la$ in !ocial protection re<uire! an increa!e in !upport for pillar! 2 and @
18
C7%9*ER C7%9*ER @
1.50 1.25 1.00 0.75 0.50 0.25 0.00 2.0 2.5 3.0 3.5 4.0 4.5 5.0
Log (Per capita income in $)
C+2 L carbon dio>ide" G&9 L $ro!! dome!tic product" 6$ L 6ilo$ram" 999 L purc#a!in$ po;er parit 0 Note: diamond! L %!ian countrie!" !<uare! L ot#er countrie!0 *#e central curve i! a <uadratic function of t#e lo$ of C+2 emi!!ion! 26$ per dollar of G&9 in 999 term!3" plotted alon$ t#e #oriGontal a>i!0 *#e ot#er t;o curve! !#o; QJ= one !tandard error0 Source: %&'0 201@0 &evelopment Imperative! for t#e %!ian Centur 0 %&' Economic! 4or6in$ 9aper Serie!" No0 @D00 )anilaE and calculation! ba!ed on 4orld 'an6 data0
@@
*#e Environmentall Su!tainable Gro;t# a$enda cover! t#e miti$ation of ne$ative environmental e>ternalitie!" climate c#an$e miti$ation and adaptation" and di!a!ter ri!6 mana$ement0
20
Inve!tin$ in !u!tainable $ro;t# and adaptin$ to climate c#an$e mu!t be vie;ed a! benefit! to $ro;t#
CD0 In recent ear!" countrie! in %!ia and t#e 9acific #ave !#o;n t#e #i$#e!t vulnerabilit ;orld;ide to climate-related di!a!ter!E # dro-meteorolo$ical di!a!ter! in %!ia and t#e 9acific <uadrupled over t#e la!t 4 decade! 2Fi$ure K30 %&' e!timate! t#at t#e economic co!t for Sout#ea!t %!ia of not miti$atin$ and adaptin$ to climate c#an$e could be e<uivalent to a lo!! of D0KI of $ro!! dome!tic product per ear b 2100H t;ice t#e ;orld avera$e0@4 Climate c#an$e i!" indeed" a $ame c#an$er" and addre!!in$ t#e cau!e! and mana$in$ t#e ri!6! a!!ociated ;it# climate c#an$e are central to !u!tained economic $ro;t#0 Inve!tin$ in !u!tainable $ro;t# and miti$atin$ and adaptin$ to climate c#an$e mu!t be vie;ed a! benefit! of or contributor! to $ro;t#" rat#er t#an a! co!t! of" or detractor! from $ro;t#0 Fi$ure K: Ri!e in 7 drodro-)eteorolo$ical )eteorolo$ical &i!a!ter!
250 200
Number of Event!
150 100 50 0
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
Source:
Fre<uencie! are aut#or!( e!timate! ba!ed on data from t#e Emer$enc Event &ataba!e of t#e Centre for Re!earc# on t#e Epidemiolo$ of &i!a!ter! 2ver!ion 1200K30 #ttp:JJ;;;0emdat0be 2acce!!ed 2 Nanuar 201430
CK0 *#e #eav burden of environmental de!truction in %!ia and t#e 9acific i! under!tood and even appreciated to a con!iderable e>tent0 Nevert#ele!!" 8u!t a! in man ot#er part! of t#e ;orld" t#ere i! little action0 *#e mo!t li6el rea!on ma be $overnance" ;#ic# i! a 6e driver of c#an$e in boo!tin$ environmental performance 2Fi$ure B30 )an $overnment! acro!! %!ia and t#e 9acific #ave e!tabli!#ed polic " le$al" and in!titutional frame;or6! to promote !u!tainable development0 )o!t countrie! are partie! to ma8or multilateral environmental a$reement!0 7o;ever" a! noted in t#e recentl i!!ued environment operational direction!"@C even in ca!e! ;#ere polic frame;or6! are ade<uate" actual reform! and implementation often do not materialiGe a! a re!ult of limited in!titutional capacit " lac6 of tec#nical e>perti!e" in!ufficient fundin$" and fra$mented in!titutional arran$ement!" in addition to ve!ted intere!t! and t#e lac6 of true motivation to act0
@4 @C
%&'0 200A0 *#e Economic! of Climate C#an$e in Sout#ea!t %!ia: % Re$ional Revie;0 )anila0 %&'0 201@0 Environment +perational &irection! 201@=2020: 9romotin$ *ran!ition! to Green Gro;t# in %!ia and t#e 9acific0 )anila0
2011
21
Note:
Source:
Environmental performance i! mea!ured b t#e environmental performance inde>0 *#e Environmental 9erformance Inde> 2E9I3 ran6! #o; ;ell countrie! perform on #i$#-priorit environmental i!!ue! in t;o broad polic area!: protection of #uman #ealt# from environmental #arm and protection of eco! !tem!0 Government effectivene!! i! an indicator of t#e capacit of $overnment! to effectivel formulate and implement !ound policie!0 4orld 'an60 20100 4orld &evelopment Report 20100 4a!#in$ton" &C0
%0
%&'(! Re!pon!e
CB0 Strate$ 2020" in it! ;ritten pre!entation!" reco$niGe! t#at environmental de$radation and t#e di!a!trou! effect! of climate c#an$e are 6e c#allen$e! for t#e re$ion0 /nle!! approac#e! to economic $ro;t# are altered to addre!! t#e de!truction of natural re!ource! and pollution" t#e re$ion(! pro!pect! for !tron$ and !u!tained $ro;t# are in 8eopard 0 Strate$ 2020 al!o !tate! t#at onl environmentall !u!tainable $ro;t# can effectivel contribute to povert reduction" becau!e man of t#e poor depend on natural re!ource! for t#eir liveli#ood0 4#at i! crucial" #o;ever" i! #o; %&'(! !tated commitment to environmentall !u!tainable $ro;t# i! tran!lated into operation!0 CA0 Evaluation! refer to t#ree area! ;#ere t#e commitment can be a!!e!!ed in term! of action! 2if not impact3: 2i3 !upport for climate c#an$e miti$ation and adaptationE 2ii3 reducin$ t#e carbon footprint of %!ia(! citie!E and 2iii3 !tren$t#enin$ environmental re$ulation and mana$ement" includin$ t#rou$# 6no;led$e tran!fer0 &i!cernible pro$re!! #a! been made in term! of increa!in$ operational focu! in t#e!e area!0 D00 % revie; underta6en for t#i! report e>amined !elected C9S approved durin$ 2001=2011E it reveal! an increa!in$ emp#a!i! on addre!!in$ environmental concern!0@D %t t#e countr level" t#e focu! reflect! var in$ countr need! or condition! 2e0$0" coa!tal Gone mana$ement" fi!#erie!" urban air <ualit " and urban tran!port30 From 200C on;ard!" t#ere #a! been an increa!ed attention to rene;able ener$ !ource!" ener$ con!ervation" and ener$ efficienc " a! !#o;n b an increa!e in pro8ect! ta$$ed for environmental !u!tainabilit in t#e Re!ult! Frame;or60@K %! illu!trated in Fi$ure A"
@D @K
*#e 9RC" India" Nepal" t#e 9acific re$ion" 9a6i!tan" and 1iet Nam %&'0 201@0 &evelopment Effectivene!! Revie; 2012 Report0 )anila0
22
E*+
ENE
%NR L a$riculture and natural re!ource!" E&/ L education" ENE L ener$ " EN1 L environment" FIN L finance" 7S9 L #ealt# and !ocial protection" I%* L indu!tr and trade" )/: L multi!ector" 9S) L public !ector mana$ement" *%I L tran!port and information and communication tec#nolo$ " 4)S L 4ater Suppl " and +t#er )unicipal Infra!tructure Service!0 Source: Independent Evaluation &epartment0
D10 %&' !upported 2@4 climate c#an$e inve!tment pro8ect! durin$ 200A=20120@B )ore t#an B0I of %&'(! climate c#an$e miti$ation effort! are focu!ed on clean ener$ E !upport to miti$ation in a$riculture" fore!tr " and land-u!e !ector! #a! been limited0 *#e Ener$ Efficienc Initiative" launc#ed in 200C" !et a tar$et of increa!in$ %&' !upport to clean ener$ pro8ect! to -1 billion per ear durin$ 200B=20120 *#i! tar$et ;a! ac#ieved and !ub!e<uentl rai!ed to -2 billion for 201@E t#i! tar$et #a! al!o been ac#ieved0 &e!pite t#e difficultie! in trac6in$ t#e climate c#an$e portfolio" a !i$nificant part i! no; !een to !upport climate c#an$e miti$ation or adaptation0 D20 *;o crucial i!!ue! emer$e" #o;ever: 2i3 ;#et#er t#e attentionHeven ta6in$ into account t#e increa!e in pro8ect! t#at !upport environmental !u!tainabilit Hi! commen!urate ;it# t#e need and ;#at i! called for in Strate$ 2020E and 2ii3 ;#et#er pro8ect re!ult! are ade<uate" or !impl label pro8ect! a! !upportive of environmental !u!tainabilit 0@A % 2011 evaluation !u$$e!ted t#at furt#er pro$re!! could be made b providin$ in!i$#t! from ener$ efficienc improvement! in ma8or ener$ -u!in$ !ector!" !uc# a! indu!tr and buildin$!" and t#rou$# en#anced a;arene!! ;it#in %&' of innovative modalitie! 2e0$0" ener$ !ervice companie! and $uarantee fund!3040 *#e evaluation of %&' !upport for t#e )&G! pointed out t#at ;#ile %&' #a! increa!in$l !upported )&GK" action remained minimal in compari!on ;it# t#e !iGe of t#e problem" and follo; up ;a! limited 2footnote 1@30
@B
IE&0 Fort#comin$0 *#ematic Evaluation Stud : %&' Support for Climate C#an$e %daptation and )iti$ation0 )anila: %&'0 @A %!!e!!ment of t#i! i!!ue i! #ampered b ;ea6ne!!e! in t#e ! !tematic monitorin$ on environmental !u!tainabilit " and t#e re!ultin$ lac6 of data0 40 IE&0 20110 Revie; of Ener$ Efficienc Intervention!0 )anila: %&'0
23
Ener$ operation! #ave been directed to;ard! ener$ efficienc and clean ener$ " and a !imilar tran!ition i! re<uired in tran!port
41
IE&0 200A0 Evaluation 5no;led$e 'rief on Green#ou!e Ga! Implication! of %&'(! Ener$ Sector +peration!0 )anila: %&'0 42 %&'0 201@0 %&' 5e Indicator! 201@0 )anila0 4@ IE&0 20100 Evaluation 5no;led$e 'rief on Reducin$ Carbon Emi!!ion! from *ran!port 9ro8ect!0 )anila: %&'0
24
DK0 +f t#e !even )&G tar$et!" t#e bi$$e!t c#allen$e! to %&' and t#e re$ion are related to C+2 emi!!ion! reduction!" acce!! to improved !anitation" and fore!t cover0 +nl C1I of %&'(! pro$rammed !anitation output! for 200A=2012 ;ere e>pected to be delivered b t#e end of 2012" t#e lo;e!t amon$ :evel 2 tar$eted output! included in %&'(! re!ult! frame;or60 %l!o" %&' lar$el ;it#dre; from operatin$ in fore!tr in t#e earl 2000!0 Rene;ed countr intere!t in t#e !ector" re!ultin$ from climate c#an$e amon$ ot#er t#in$!" i! a reminder of it! crucial importance for t#e re$ion and %&'0
DB0 Furt#ermore" an on$oin$ evaluation 2footnote @B3 find! t#at !upport for climate c#an$e adaptation" ;#ic# be$an in 200A" remain! mode!tHe!timated at about -KD4 million in 2011" and -BAC million in 20120 In line ;it# %&'(! overall inve!tment portfolio 2K2I of ;#ic# i! for infra!tructure component!3" climate c#an$e adaptation intervention! are concentrated in climate proofin$ of infra!tructure pro8ect!0 +f t#e 100 approved inve!tment pro8ect! t#at ;ere cla!!ified a! climate c#an$e adaptation pro8ect! durin$ 200A=2012" at lea!t 4A included !ome infra!tructure climate proofin$ mea!ure!" and in B1 t#e ma8orit of t#e inve!tment ;a! for infra!tructure0 *#i! i! in line
25
DA0 Five pro8ect! al!o included a re!pon!e to dama$e from natural #aGard! t#rou$# re#abilitation of infra!tructure to reconnect to mar6et! and re-e!tabli!# ;ater !upplie!0 K00 *#e recent deva!tatin$ natural di!a!ter! in t#e 9RC" India" 9a6i!tan" t#e 9#ilippine!" *#ailand" and el!e;#ere under!core t#e ur$ent need for %&' to #elp build di!a!ter ri!6 mana$ement 2&R)3 capacit 0 %&' #a! a record in t#i! area" and it! di!a!ter recover pro8ect! #ave often been more !ucce!!ful t#an pro8ect! overall0 'ut man di!a!ter recover pro8ect! to date ;ere mainl concerned ;it# t#e limited ob8ective of re!torin$ particular t pe! of infra!tructure in t#e affected area!" rat#er t#an re#abilitatin$ liveli#ood!" or increa!in$ di!a!ter re!ilience b buildin$-bac6-better04C *#e needed !#ift in focu! to prevention and preparedne!! ;ill #ave increa!in$ appeal to countrie! in vie; of t#e fre<uenc of t#e di!a!ter! t#e #ave faced0 K10 % recent evaluation of %&'(! re!pon!e to natural di!a!ter! found t#at" ;it# t#e e>ception of 'an$lade!#" Nepal and t#e 9acific countrie!" mo!t countr pro$ram! #ave not treated t#e $ro;in$ fre<uenc of natural di!a!ter! a! a ! !temic ri!6 to !u!tained economic $ro;t#" and do not ! !tematicall include di!a!ter ri!6 reduction mea!ure!04D %&' i! more reactive t#an pro-active in focu!in$ on creatin$ a;arene!! t#rou$# polic dialo$ue ;it# countr client! and tec#nical advi!or !ervice!0 K20 Independent evaluation" t#erefore" !tre!!ed t#e: 2i3 preparation of a natural di!a!ter vulnerabilit a!!e!!ment for vulnerable countrie!" 2ii3 adoption of an inte$rated approac# to &R)" be ond infra!tructure re#abilitation" 2iii3 !tren$t#enin$ of partner!#ip! ;it# ot#er development partner! in t#i! area" 2iv3 inte$ration of climate c#an$e and natural di!a!ter activitie!" and 2v3 furt#er development of ri!6 finance in!urance option! for t#e re$ion0 Follo;-up on t#e!e recommendation! i! be$innin$" includin$ t#rou$# t#e revi!ed draft &R) %ction 9lan0 K@0 *#e Climate C#an$e Fund" financed from %&'(! internal re!ource! and mana$ed b %&'" levera$ed no e>ternal financin$0 *#e Clean Ener$ Financin$ 9artner!#ip Facilit and t#e Climate C#an$e Fund enabled a lar$e number of applicant! to avail of t#e!e fund!" but provided little e>perience to %&' !taff in !ee6in$ climate financin$ from e>ternall mana$ed climate fund!04K
)o!t countr pro$ram! #ave not treated natural di!a!ter! a! a ! !temic ri!6 to !u!tained $ro;t#
44 4C
4D 4K
IE&0 20120 %nnual Evaluation Revie;0 )anila: %&'0 Notable e>ception! include t#e po!t-t!unami !upport in %ce#" Indone!ia" and t#e po!t-eart#<ua6e !upport in Gu8arat" India 2bot# financed b t#e Napane!e Fund for 9overt Reduction30 IE&0 20120 Special Evaluation Stud : %&'(! Re!pon!e to Natural &i!a!ter! and &i!a!ter Ri!60 )anila: %&'0 *#e Climate C#an$e Fund i! reported to #ave levera$ed: 2i3 nearl B time! t#e fund! it allocated for carbon emi!!ion !avin$!" 2ii3 4A time! t#e fund! it allocated for reduced emi!!ion! from defore!tation and fore!t de$radation 2RE&&Q3 and land u!e" and 2iii3 over A0 time! t#e amount it allocated for climate c#an$e
26
'0
Recommendation!
*#e ur$enc of !u!tainable $ro;t# i! #ei$#tened b environmental de$radation and climateclimate-related di!a!ter!
K40 *#e ur$enc of environmentall !u!tainable $ro;t# i! #ei$#tened b environmental de$radation and t#e fre<uenc of climate-related di!a!ter!" ;#ic# #ave ;or!ened !ince t#e adoption of Strate$ 20200 +verall" t#e problem! far outpace t#e re!pon!e from t#e re$ion and %&'0 *#ere #a! been an appropriate increa!e in climate inve!tment! in t#e %&' ener$ portfolio" but a !imilar increa!e #a! not ta6en place in t#e tran!port portfolio0 *#e recent evaluation of %&'(! !upport for t#e )&G!H particularl )&GKH!#o;ed muc# room for furt#er action0 KC0 9ur!uin$ environmentall !u!tainable $ro;t# repre!ent! a benefit to $ro;t#" rat#er t#an a co!t to development0 *#i! imperative mu!t be muc# better inte$rated into %&' operation!0 %! a re$ional public in!titution" %&' #a! a 6e re!pon!ibilit to contribute to a cleaner development pat#" and in doin$ !o" can contribute !i$nificant added value0 *#e rene;ed !tre!! on inclu!ive $ro;t# and t#e imperative of en!urin$ environmental !u!tainabilit i! be!t met b %&' adoption of a triple bottom line" ;#ic# ;ill #elp ali$n %&'(! commitment to t#e po!t-201C development a$enda and emer$in$ !u!tainable development $oal!0 KD0 Given t#e in!titution(! focu! on infra!tructure and t#e re$ion(! e>treme vulnerabilit to climate di!a!ter!" %&' mu!t ma6e a far-reac#in$ operational contribution to promotion of environmental !u!tainabilit " and climate c#an$e adaptation and miti$ation" in part b tappin$ t#e va!t climate fund!0 Specificall " ;e fla$ t#e follo;in$ area! for action0 KK0 Implementin$ a triple bottom line re<uire! !tron$ environmental $overnance" ;#ic# i! lac6in$ in man countrie!E %&' !upport for environmental $overnance i! vital" and in 6eepin$ ;it# it! overall commitment to !upportin$ !tren$t#ened $overnance in t#e re$ion0 In providin$ !uc# !upport %&' !#ould reco$niGe: 2i3 t#e need to !ee6 and e>ploit opportunitie! for incremental pro$re!!E 2ii3 t#at !ector $overnance en#ancement i! a continuin$" lon$-term proce!!E and 2iii3 t#e need for a !olid under!tandin$ of t#e local $overnance conte>t a! t#e ba!i! for !upport0 KB0 Climate c#an$e miti$ation and adaptation are an e!!ential part of t#e paradi$m !#ift to a triple bottom line polic re!pon!e0 %ddre!!in$ environmental de$radation and di!a!ter! can reduce t#e impact of !#oc6!0 %n on$oin$ evaluation 2footnote @B3 indicate! t#at %&' i! ;ell-po!itioned to increa!e it! role a! a 6no;led$e bro6er on climate c#an$e0 Critical i!!ue! ;#ere !tate of t#e art 6no;led$e i! re<uired include carbon !e<ue!tration" tradeoff! and lin6a$e! bet;een climate c#an$e miti$ation and adaptationE overlap! and connection! bet;een adaptation and &R)E !u!tainable food" ener$ and ;ater !ecurit E and urban development0 *#ere al!o need! to be far $reater motivation to levera$e non-%&' fund! to finance climate c#an$e need!0 KA0 *#e evaluation of %&'(! re!pon!e to natural di!a!ter! and di!a!ter ri!6 concluded t#at natural di!a!ter! are in part a con!e<uence of increa!ed population" povert " and climate c#an$e" and t#at !upport for natural di!a!ter mana$ement i!
adaptation0 *#e!e fi$ure!" #o;ever" refer to %&'(! normal !ource! of financin$ *% and inve!tment pro8ect! onl 2i0e0" ordinar capital re!ource!" %!ian &evelopment Fund" ot#er *% re!ource!" and ot#er %&'admini!tered climate fund!30 *#e Climate C#an$e Fund ;a! not u!ed to levera$e an e>ternall mana$ed climate fund!0
%&' mu!t ma6e a farfar-reac#in$ contribution to environmental !u!tainabilit and climate c#an$e miti$ation and adaptation
27
CHAPTER 4
A.
AD#4! Re!pon!e
84. Significant progre!! "a! *een made in aligning PSD and PS %it" Strategy 2020 !ince 2008. Staff re!o(rce! for PSD and PS almo!t do(*led d(ring 207082072' and a fift" vice/pre!idency %a! created to !(pport PS and cofinancing operation! in 2070. T"e !"are of PSD/t"emed operation! gre% from an average of 292 d(ring 20008 200: to 082 d(ring 200882072. +o!t of t"i! gro%t" "a! re!(lted from increa!e! in PS and PPP/related !(pport' %"ile t"ere %a! little c"ange in ena*ling environment !(pport. 81. Amo(nt! approved for non/!overeign operation! -incl(ding PS and lending to p(*lic agencie! %it"o(t government g(arantee!. accelerated to an average of ;2 *illion d(ring 200882072 from ;::: million d(ring 20008200:' *(t t"i! !tand! at an average of 712 of overall approved amo(nt!. AD# pro<ect! "ave *een !(cce!!f(l in cataly5ing private financing' mainly t"ro(g" AD#4! direct financial !(pport= t"e (!e of ne% financial in!tr(ment! or g(arantee! "a! increa!ed in nominal term!' *(t not a! a !"are of total AD# !(pport. At t"e end of 2072' infra!tr(ct(re PS of ;4 *illion
48
T"i! !ection dra%! mo!tly on t"e follo%ing t%o eval(ation!, -i. 6ED. 2070. T"ematic Eval(ation St(dy, AD# Private Sector peration!, Contri*(tion! to 6ncl(!ive and Environmentally S(!taina*le >ro%t". +anila, AD#= and -ii. 6ED. 2070. T"ematic Eval(ation St(dy, AD# S(pport for Strengt"ening t"e Ena*ling Environment for Private Sector Development. +anila, AD#.
29
BK0 ' compari!on" 9S+& !caled up it! attention to miti$atin$ climate c#an$e ri!6 t#rou$# it! focu! on clean ener$ in 200A" ;it# increa!ed inve!tment! in combinedc cle $a! plant!" !olar po;er" and ;ind po;er0 *#e number and value of pro8ect! !ee6in$ to contribute directl to environmentall !u!tainable $ro;t# #a! increa!ed !ub!tantiall " alt#ou$# from a lo; ba!e" !ince t#e approval of Strate$ 20200 *#e !#are 2in term! of number3 of 9S+ promotin$ rene;able and clean ener$ " ener$ efficienc " and !olid ;a!te mana$ement increa!ed from BI of total 9S+ approval! durin$ 2000= 200B to 4AI durin$ 200A=20120 9S+ #ave been t#e main c#annel to promote rene;able ener$ !ource!" accountin$ for DAI of related %&' inve!tment volume!0 BB0 9S+ al!o !upported re$ional inte$ration focu!in$ on trade cooperation and climate c#an$e financin$ t#rou$# t#e *rade Finance 9ro$ram" Suppl C#ain Finance" and t#e Climate 9ublic-9rivate 9artner!#ip Fund0 BA0 Infra!tructure accounted for about D0I of 9S+ commitment!0 Ran$in$ from telecommunication! to ener$ $eneration pro8ect!" t#e!e tran!action! made !ub!tantial contribution! to economic $ro;t# and developmentE t#e 1A infra!tructure tran!action! approved after 2000 ;it# independent evaluation ratin$! pa!!ed t#e 10I #urdle rate for economic viabilit " ;it# man #avin$ rate! of economic return e>ceedin$ 20I0 Some pro8ect! al!o directl promoted inclu!ion" particularl in telecommunication! 2'o> C3 and ;ater" ;#ile ener$ pro8ect! indirectl facilitated rural electrification0 %bout #alf of 9S+&-!upported infra!tructure pro8ect! #elped catal Ge additional private inve!tment in t#e re!pective !ector! and countrie! b demon!tratin$ commercial fea!ibilit of private !ector participation" and introducin$ ne; tec#nolo$ie! or financial !tructure! and ri!6-!#arin$ arran$ement!0
9ro8ect! !ee6in$ to contribute directl to environmentall !u!tainable $ro;t# #ave increa!ed !ub!tantiall
30
Source:
+ne of t#e !upported compan (! value-added !ervice! i! t#e Cell'aGaar" a u!er-$enerated mar6et ;#ere bu er! and !eller! are able to trade ba!ic $ood! 2e0$0" rice" fi!#" motorc cle!" u!ed $ood!3 u!in$ t#eir mobile p#one!0 In 200D" t#e compan launc#ed it! 7ealt#:ine !ervice" a medical call center !taffed b licen!ed p# !ician! t#at $ive! t#e compan (! mobile p#one !ub!criber! an opportunit to !ee6 #ealt#related advice or con!ultation t#rou$# an interactive teleconference0 Independent Evaluation &epartment0
A00 Financial !ector tran!action! made up about one-t#ird of 9S+& tran!action!0 )an of t#e!e tran!action! did not contribute to !u!tainable $ro;t# or inclu!ion" and 1@ of t#e 2C po!t-2000 tran!action! ;it# independent evaluation ratin$! rated le!! t#an !ati!factor or un!ati!factor for development impact0 *#e actual inve!tment !trate$ie! of !ome 9S+&-!upported private e<uit fund! differed from t#e development ob8ective! !tated at inve!tment approval" and emplo ment effect! ;ere not optimiGed0 )an ot#er financial !ector tran!action! ;it# S)E development ob8ective! ;ere lar$el
31
999! #ave #ave become an in!titutional priorit " #o;ever" t#i! #a! not tran!lated into e>pected level! of tran!action!
Some element! of t#e inve!tment climate #ave not received ade<uate attention
32
% !ound financial ! !tem i! important for 9S& and economic development
AB0 %&'-!upported ban6in$ !ector reform! contributed to improved !ector !oundne!! and facilitated increa!e! in private !ector credit0 7o;ever" in !ome countrie!" intere!t rate mar$in!" and t#u! financin$ co!t! for entrepreneur!" remain #i$# due to macroeconomic uncertaint " lac6 of competition" lac6 of reliable credit and financial information on borro;er!" inade<uate ri!6 mana$ement !6ill! of ban6!" and" to a le!!er e>tent" continuin$ intere!t rate di!tortion!0 AA0 % 2012 evaluation on %&'(! microfinance operation! 2footnote @23 found operation! le!! t#an effective in ac#ievin$ re!ult!0 %&' !upport concentrated on developin$ t#e polic environment and addre!!in$ !uppl !ide con!traint!" ;it# le!! focu! on demand-!ide i!!ue! !uc# a! developin$ t#e capacit of t#e poor to acce!! and u!e financial !ervice!" and to ma6e microfinance more inclu!ive and effective for t#e poor0 %&' !upport for pro-poor innovative product! and deliver model! ;a! limited" ;it# little attention to t#e !ocial performance of microfinance operation!0 %! a re!ult" t#e penetration of microfinance amon$ t#e poor remain! lo;0 %! of end 2010" t#e avera$e penetration in t#e 21 countrie! ;it# %&' microfinance !upport ;a! 20I for t#o!e livin$ belo; -102C per da 0 Countr ca!e !tud !urve ! !#o;ed t#at fe;er t#an AI of microfinance client! lived on le!! t#an -102C per da " and fe;er t#an 22I lived on le!! t#an -2 per da 0
'0
Recommendation!
1000 %&'(! private !ector ;or6 can and !#ould ma6e $reater contribution! to t#e !trate$ic a$enda! of Strate$ 2020" in particular inclu!ive $ro;t#0 'a!ed on independent evaluation!" action! in t#e follo;in$ area! are critical" and %&' mi$#t con!ider updatin$ it! 9S& !trate$ to reflect t#e!e prioritie!0 1010 Effort! to improve t#e enablin$ environment for private !ector development are critical0 Support for bu!ine!! re$ulator " competition and $overnance reform! need! to be increa!ed and en#anced t#rou$# a $reater focu! on outcome! durin$ pro8ect
C0
Calculated !ector !#are! do not include financial !ector component! in multi!ector operation!0
33
34
C7%9*ER C
5no;led$e Solution!
10B0 *#e demand for and !uppl of 6no;led$e are bot# evolvin$ rapidl " ;#ile t#e mean! of appl in$ it t#rou$# ne; tec#nolo$ie! and net;or6! are e>pandin$0 *#e e>pandin$ 6no;led$e ba!e ;it#in countrie! complement! re$ional and $lobal e>perti!e" and re<uire! muc# $reater appreciation and better coordination of t#e!e multiple 6no;led$e !ource!0 10A0 Strate$ 2020 ;a! t#e fir!t %&' !trate$ to pa !pecial attention to t#e 6no;led$e a$enda and to reco$niGe 6no;led$e a! a catal !t for development0 *#e !trate$ committed %&' to a lar$er role in levera$in$ 6no;led$e !olution! for t#e re$ion" and called for action! t#at included: 2i3 !upportin$ a more robu!t bod of empirical 6no;led$e to re!olve critical ob!tacle! to development" 2ii3 identif in$ and pa!!in$ on be!t practice!" 2iii3 !upportin$ pilot pro8ect!" 2iv3 enric#in$ internal learnin$ from communitie! of practice 2Co9!3 and lon$-term !trate$ic partner!#ip!" and 2v3 di!tributin$ 6no;led$e in ;a ! t#at #ave bot# an immediate impact and catal tic force0
*#e demand for and !uppl of 6no;led$e are bot# evolvin$ rapidl
%0
%&'(! Re!pon!e
1100 %&' #a! ta6en !ome !trate$ic and or$aniGational !tep! to addre!!in$ t#e $ro;in$ demand from countrie! for a!!i!tance t#at e>tend! be ond financial and pro8ect !upport0 % 2012 evaluation of %&' 6no;led$e product! and !ervice! 259S3 found t#at pro$re!! #a! been made on t#e 6no;led$e a$enda in variou! area!" leadin$ to an overall po!itive a!!e!!ment of re!pon!ivene!!0 *#e evaluation found $ood 6no;led$e practice! amon$ !ome Co9! 2e0$0" tran!portation and ;ater3" re$ional department! 2e0$0" Sout#ea!t %!ia and Ea!t %!ia3" and re!ident mi!!ion! 2e0$0" t#e 9RC and India30 Effort! #ave al!o been made to improve !ome a!pect! of t#e enablin$ environment for 6no;led$e mana$ement" includin$ improvement! in information tec#nolo$ ! !tem! and ;eb!ite!0C1 1110 *#e evaluation found e>ample! of !ucce!! !torie! and e>ceptional" #i$#-<ualit 59S 2'o> D30 5no;led$e di!!emination #a! e>panded" ;it# !tead $ro;t# in 59S do;nload!" ;eb!ite traffic" and publication !ale!0 Since 200C" %&' #a! conducted periodic internal and e>ternal !urve ! to $at#er feedbac6 on it! 6no;led$e ;or60 1120 *#e evaluation found t#e implementation of %&'(! 200A=2011 5no;led$e )ana$ement %ction 9lan to be !ati!factor " but ;it# !ome $ap!0 *#e recent adoption of t#e 5no;led$e )ana$ement &irection! and %ction 9lan 2201@=201C3 provide!
C1
*#i! c#apter dra;! #eavil on findin$! and recommendation! from t#e 2012 evaluation: IE&0 20120 Special Evaluation Stud on 5no;led$e 9roduct! and Service!: 'uildin$ a Stron$er 5no;led$e In!titution0 )anila: %&'0
36
11@0 %&'(! publication output #a! e>panded !i$nificantl and $ro;n more diver!e !ince 200B" in term! of format! and covera$e0 *#e number of fla$!#ip and 6no;led$e andJor re!earc# publication! produced b 6no;led$e and re$ional department! doubled durin$ 200K=2011 2Fi$ure 1030 %&'(! &epartment of E>ternal Relation! e!timate! t#at t#e total publication output 2includin$ all publication cate$orie!3 #a! $ro;n five-fold !ince 200K0 'o> D: E>ample! of /!eful 5no;led$e 9roduct! and Service! *#e 2012 evaluation on 59S identified a number of !tudie!" pro8ect!" and initiative! ;it# #i$# relevance" u!e and influence0 In Central and 4e!t %!ia" an e>ample ;a! t#e C%REC *ran!port and *rade Facilitation: 9artner!#ip for 9ro!perit !tud a ;#ic# $uided t#e re$ion(! !trate$ for tran!port" trade" and inte$ration more broadl 0 %&'(! ;or6 on S+E reform! t#rou$# t#e 9rivate Sector &evelopment Initiative in t#e 9acific ;a! reco$niGed a! influential" !upportin$ #i$#-level dialo$ue and learnin$ alon$!ide on$oin$ S+E reform! acro!! a number of countrie!0 %! an information tec#nolo$ e>ample" t#e %RIC ;eb!ite #a! proven to be an effective portal for !#arin$ 6no;led$e and facilitatin$ polic dialo$ue0 In 9RC" !upport for t#e eco-compen!ation a$enda pla ed a ma8or role in creatin$ and !#arin$ $ood practice! and !timulatin$ polic dialo$ue0 %&'(! lon$-term re$ional cooperation ;or6 in t#e Greater )e6on$ Subre$ion al!o provide! e>ample! of u!eful 6no;led$e ;or60 %&'(! Social 9rotection Inde> i! a uni<ue 6no;led$e product ;it# #i$# relevance to development polic in t#e re$ion0 *#e evaluation encoura$ed %&' to ma6e t#e!e !pecial e>ample! t#e norm rat#er t#an t#e e>ception" offerin$ !u$$e!tion! on #o; t#i! mi$#t be done" includin$ t#rou$# $reater focu! on client 6no;led$e need!" continued improvement! in enablin$ tec#nolo$ie!" and !tron$er control of publication <ualit 0
%&' L %!ian &evelopment 'an6" %RIC L %!ia Re$ional Information Center" C%REC L Central %!ia Re$ional Economic Cooperation" G)S L Greater )e6on$ Subre$ion" 59S L 6no;led$e product! and !ervice!" 9RC L t#e 9eople(! Republic of C#ina" S+E L !tate-o;ned enterpri!e0 a %&'0 200A0 C%REC *ran!port and *rade Facilitation: 9artner!#ip for 9ro!perit 0 )anila0 Source: IE&0 20120 Special Evaluation Stud on 5no;led$e 9roduct! and Service!: 'uildin$ a Stron$er 5no;led$e In!titution0 )anila: %&'0
1140 % number of concern! and con!traint! need attention0 4#ile %&'(! 59S output #a! $ro;n !ub!tantiall " a ;ide ran$e of 6no;led$e mana$ement approac#e! prevail ;it#in t#e or$aniGation ;it#out !ufficient co#erence" coordination" and con!ideration of ;#et#er t#e fulfill priorit need!0 *#i! #a! created a ri!6 to <ualit " a !en!e of confu!ion" and lac6 of clarit on t#e direction of 6no;led$e mana$ement0
+no$ledge Solutions 37
Fi$ure 10: %&' Fla$!#ip and 5no;led$e and Re!earc# Re!earc# 9ublication! b &epartment 2004= 2004=2011
%&' L %!ian &evelopment 'an6" C4R& L Central and 4e!t %!ia &epartment" &ER L &epartment of E>ternal Relation!" E%R& L Ea!t %!ia &epartment" ER& L Economic! and Re!earc# &epartment" +REI L +ffice of Re$ional Economic Inte$ration" 9%R& L 9acific &epartment" RS&& L Re$ional and Su!tainable &evelopment &epartment" S%R& L Sout# %!ia &epartment" SER& L Sout#ea!t %!ia &epartment0 Note: Fla$!#ip and 6no;led$e andJor re!earc# publication! are cate$orie! % and ' in %&'(! publication cla!!ification ! !tem" includin$ boo6!" brief!" fla$!#ip !erie! 2e0$0 annual fla$!#ip publication!3" 8ournal!" report!" !tand-alone fla$!#ip! 2i0e0 one-off fla$!#ip publication!" ;or6in$ paper!0 Source: IE&0 20120 Special Evaluation Stud on 5no;led$e 9roduct! and Service!: 'uildin$ a Stron$er 5no;led$e In!titution0 )anila: %&'0
11C0 *#e inade<uate #arne!!in$ and di!!emination of tacit 6no;led$e impede! %&' effort! to create a competitive advanta$e for it! 59S at t#e countr level0 *#e role of Co9! i! undoubtedl important" but t#eir performance varie! #i$#l 0 Identification of countr -level 6no;led$e need! i! a $ap0 )oreover" t#e ;or6 pro$ram and bud$et frame;or6 doe! not !#o; direct re!ource allocation! to;ard !pecific 6no;led$e activitie! 2be ond departmental bud$et allocation!3" and t#e pro8ect cla!!ification ! !tem doe! not capture 6no;led$e ;or60C2 In t#e re$ional department!" 6no;led$e ;or6 i! often $iven lo;er priorit relative to lendin$ ;or60 11D0 4#ile %&' i! becomin$ more 6no;led$e oriented" t#ere remain! a poor under!tandin$ of 6no;led$e mana$ement" !temmin$ lar$el from a lac6 of clarit and common a$reement on 6e concept! and term! and t#e re!pective 6no;led$e mana$ement role! of different or$aniGational unit!0 4ea6 $uidance a! ;ell a! ineffective coordination acro!! department! and acro!! 6no;led$e c#annel! 2bet;een #ead<uarter! and re!ident mi!!ion!3 are ot#er 6e con!traint!0 *#e proliferation of publication! reflect! $reater effort to $enerate and di!!eminate 6no;led$e" but t#e poor <ualit of !ome publication! po!e! ri!6! to %&'(! reputation0 *o #elp vi!ualiGe and clarif %&'(! 6no;led$e mana$ement ! !tem and ;#ere reform! and improvement! ma be tar$eted" t#e 2012 evaluation propo!ed t#e 6no;led$e mana$ement frame;or6 depicted in Fi$ure 110 *#e frame;or6 illu!trate! t#at %&'(! 6no;led$e mana$ement ! !tem compri!e! man di!tinct but dependent function! and proce!!e!0 Rai!in$ t#e overall effectivene!! of t#e ! !tem t#erefore re<uire! coordinated reform! and improvement! acro!! all t#e!e area!" ver!u! piecemeal and ot#er;i!e uncoordinated reform!0
5no;led$e ;or6 i! often $iven lo;er priorit relative to lendin$ ;or6 %&'P! 6no;led$e mana$ement ! !tem compri!e! man di!tinct but dependent function!
C2
% revi!ed pro8ect cla!!ification ! !tem propo!e! to add a ne; 6no;led$e mar6er for pro8ect!
38
&)C L developin$ member countr " 5) L 6no;led$e mana$ement0 a Note!: In!titutional frame;or6 include! leader!#ip and !taff o;ner!#ip and bu -inE in!titutional !tructure!E incentive!E 5) policie!" !trate$ie!" and $uideline!E and 5) !taffin$ and e>pert!0 b Enablin$ tec#nolo$ie! include information tec#nolo$ infra!tructure and tool! for !tora$e" di!!emination" e>c#an$e" and collaboration0 Source: Independent Evaluation &epartment0
% ma8or concern relate! to #o; %&' #arne!!e! and levera$e! tacit 6no;led$e
11K0 % ma8or concern relate! to #o; %&' #arne!!e! and levera$e! tacit 6no;led$e and #o; ;ell !taff embed 6no;led$e in pro8ect de!i$n! and impart it in t#e cour!e of implementation0 4#ile !ome !taff #ave developed deep e>perti!e in !ome core bu!ine!! area!" t#ere i! concern t#at t#i! ric# e>perience i! not bein$ ade<uatel codified and !#ared acro!! different part! of t#e or$aniGation0 +ne of t#e $oal! of t#e 5no;led$e )ana$ement %ction 9lan t#at ;a! lar$el not ac#ieved i! t#e capturin$ of tacit 6no;led$e from departin$ !taff0 *#e 6no;led$e t#at i! or could be uni<ue to %&'H ;#ic# ;ould $ive it a !tron$ comparative advanta$eHi! 6no;led$e of ;#at ;or6! and ;#at doe!n(tE !taff $ain !uc# 6no;led$e eac# da in t#e field" a! t#e de!i$n and monitor t#e implementation of pro8ect!0 11B0 *ec#nical a!!i!tance i! an important tool for %&'" but it i! not $iven attention commen!urate ;it# it! potential0 Evaluation! #ave rai!ed concern! on t#e u!e of *% for 6no;led$e0C@ *#e relevance of *% i! increa!in$ a! %&'(! 6no;led$e role continue! to e>pand and a! client demand for 6no;led$e and capacit development !upport continue! to diver!if 0 4#ile ca!e !tudie! !#o; e>ample! of !ucce!!ful *% u!e" in in!tance! ;#ere %&' #a! provided continued" lon$-term !upport" evaluation! al!o find lin$erin$ c#allen$e!0 For e>ample" re$ional *% i! an important public $ood provided b %&'" but it i! not ;ell coordinated and inte$rated ;it# ot#er %&' pro$ram!0 *#e !ame applie! to man *% output! ori$inatin$ from %&'(! 6no;led$e department!0 Countrie! are often in!ufficientl involved in *% de!i$n and implementation" ;#ic# reduce!
C@
IE&0 200K0 Special Evaluation Stud : 9erformance of *ec#nical %!!i!tance0 )anila: %&'0 IE&0 Fort#comin$0 *#ematic Evaluation Stud : Role of *ec#nical %!!i!tance in %&'0 )anila: %&'0
+no$ledge Solutions 39
o;ner!#ip and !u!tainabilit 0 *% completion report! var in <ualit and are not u!ed effectivel to capture and !#are 6no;led$e0 11A0 %&'(! current model for proce!!in$ and admini!terin$ pro8ect! $ive! little !upport to implementation 2di!cu!!ed furt#er in C#apter D3" lac6! continuit " and i! not ;ell inte$rated ;it# %&' $oal! re$ardin$ 6no;led$e0 *eam! rel increa!in$l on con!ultant!" ;#o often cannot impart in!titutional 6no;led$e ;#en de!i$nin$ and !upportin$ pro8ect implementation0 Con!ultant! al!o lac6 t#e incentive to e>tract relevant le!!on! and incorporate t#em into %&'(! 6no;led$e ba!e0 4#ile t#e re!ource! and !taffin$ for 6no;led$e mana$ement #ave more t#an doubled 2from -@0 million in 200A to -DA million in 2012" ba!ed on bud$et allocation! to t#e 6no;led$e department!3" operational !taff appear to lac6 re!ource! to devote to !uc# operation!lin6ed 6no;led$e ;or60
*eam! rel increa!in$l on con!ultant!" ;#o often cannot impart in!titutional 6no;led$e
'0
Recommendation!
1200 :eadin$ 6no;led$e in!titution! around t#e ;orld are movin$ a;a from a #uband-!po6e" one-;a di!!emination model to;ard! a more interactive" open !ource" 6no;led$e co-creation model" includin$ more emp#a!i! on coordination" u!in$ local 6no;led$e and Sout#=Sout# learnin$0 *#i! evolution brin$! a !i$nificant opportunit to better levera$e 6no;led$e to rai!e development outcome!0 1210 %&' reco$niGe! t#at it! relevance and re!pon!ivene!! to client!" and it! abilit to !upport a triple bottom line a$enda" ;ill depend increa!in$l on it! effectivene!! a! a 6no;led$e in!titution0 Increa!in$ t#e development impact of %&'(! 6no;led$e ;or6 re<uire! a better coordinated and inte$rated approac# t#at addre!!e! ;ea6ne!! in t#e entire 6no;led$e mana$ement ! !tem 2Fi$ure 1130 1220 Evaluation findin$! !u$$e!t t#at %&' !#ould !tren$t#en: 2i3 identification of 6no;led$e need!" amon$ bot# internal and e>ternal client!E 2ii3 $eneration of #i$#<ualit " cuttin$-ed$e" and in-demand 6no;led$e product! 2e0$0 t#rou$# !tron$er <ualit control mec#ani!m!3E 2iii3 capturin$ and !#arin$ of embedded and tacit 6no;led$e acro!! %&' department! and countrie!E 2iv3 inte$ration of 6no;led$e ;or6 into countr !trate$ie! and pro8ect c cle!" a! !ome re$ional department! #ave be$un to underta6e ;it# $ood !ucce!! 2e0$0" t#rou$# countr 6no;led$e plan!3E 2v3 t#e role of re!ident mi!!ion! in t#e 6no;led$e c cleE 2vi3 internal coordination" ;it# clearer delineation amon$ 6no;led$e department!E and 2vii3 incentive ! !tem!" ;it# better reco$nition and re;ard! for !tand-out 6no;led$e ;or60 Continued improvement! in enablin$ tec#nolo$ie! are al!o critical" a! are effort! to better monitor t#e u!e of 2and client !ati!faction ;it#3 %&' 59S0 12@0 Greater attention to t#e 6no;led$e need! nece!!ar 0 *#e value of t;o-;a 6no;led$e tran!fer 8u!tification for %&'(! continued pre!ence in )IC! influence t#e #ave on re$ional and public $ood!" lo;er-income countrie!0 of t#e $ro;in$ )IC clientele i! #a! been #i$#li$#ted b )IC!0 % i! t#e potential 6no;led$e and ;#ic# %&' can #elp c#annel to
%&' reco$niGe! t#at it! relevance ;ill depend increa!in$l on it! effectivene!! a! a 6no;led$e in!titution
1240 %&' need! to develop !i$nature 6no;led$e area! and !tren$t#en $eneration" coordination and collaboration on t#e!e0 %&' can !trive to be at t#e forefront in area! of critical importance to client! and t#e re$ion0 Importantl " to remain relevant %&' !#ould not limit it! !i$nature area! to t#e !ector! in ;#ic# it provide! financin$0 %&' can be an intellectual leader in ot#er area!E for e>ample" in advocatin$ for re$ional public $ood!" a! it relate! to defore!tation 2para B430 %! ot#er or$aniGation! 2e0$0" development partner!" t#in6 tan6!" univer!itie!" and non$overnment or$aniGation!3
40
12C0 )ore attention !#ould be $iven to t#e u!e and effectivene!! of %&' *%" includin$ t#e introduction of reimbur!able *% arran$ement!" and dedicated tru!t fund! for underta6in$ and deepenin$ competence in !i$nature 6no;led$e area! ;it# #i$# potential for !olvin$ t#e re$ion(! mo!t difficult development c#allen$e!0 Greater effort i! needed to en!ure #i$#er-<ualit *% de!i$n! and completion report!0 *% can re!pond muc# more to demand" and t#ereb focu! more !#arpl on t#e mo!t critical problem! faced b countrie!0
C7%9*ER D
12K0 In addition" a corporate re!ult! frame;or6 ;a! introduced to monitor pro$re!! a$ain!t t#e $oal! !et out in Strate$ 2020" and a mec#ani!m ;a! put in place t#rou$# t#e &evelopment Effectivene!! Revie; to monitor performance annuall and dra; up action plan! ;#ere re<uired0 12B0 4it# t#e!e reform! Strate$ 2020 intended to tran!form %&' and lift it! performance" t#ereb enablin$ it to more effectivel re!pond to t#e re$ion(! ma8or development c#allen$e!0 4#ile %&' #a! ta6en !ome !tep! to implement t#e!e c#an$e!" t#e full effect!Hand t#e intended in!titutional tran!formationH#ave et to be realiGed0 *#e in!titutional tran!formation ;ill not occur ;it#out !tron$er demand for re!ult! from %&' leader!#ip0
%0
%&'(! Re!pon!e
12A0 Strate$ and polic co#erence0 In line ;it# Strate$ 2020(! call for improved !trate$ic and polic co#erence" %&' adopted !ome C0 ne; directional document! 2policie!" plan!" $uideline!" etc03 from 200B=201@ to !upport and operationaliGe Strate$ 2020 2%ppendi> 230 *#e document! $ive direction on variou! element! of Strate$ 2020: !trate$ic a$enda!" driver! of c#an$e" t#e five core and ot#er operational area!" a! ;ell a! in!titutional and or$aniGational tran!formation0 7o;ever" in !ome important area!" t#e formulation of clear operational $uidance ;a! !ub!tantiall dela ed 2!uc# a! in t#e ca!e of inclu!ive $ro;t#3" or not underta6en at all0 For e>ample" alt#ou$# a 200K evaluation #i$#li$#ted t#e need for a decentraliGation !trate$ "C4 no
C4
%&' adopted ne; directional document! to !upport and operationaliGe Strate$ 2020
IE&0 200K0 Special Evaluation Stud : Re!ident )i!!ion 9olic and Related +peration!: &eliverin$ Service! to Client!0 )anila: %&'0
42
%&' #a! ac#ieved !taffin$ e>pan!ion" but concern! on t#e overall !6ill! mi> remain
1@00 Staffin$0 %&' #a! ac#ieved !taffin$ e>pan!ion" and !taff repre!ent a $reat !tren$t#" but concern! on t#e overall !6ill! mi> remain0 Follo;in$ t#e adoption of Strate$ 2020 in 200B" %&' under;ent a $eneral capital increa!e in 200A" leadin$ to a !i$nificantl increa!ed lendin$ pro$ram0CC *#e $eneral capital increa!e ;a! accompanied b a 'oard deci!ion to add C00 ne; !taff member! bet;een 2010 and 2012" ;#ic# %&' ac#ieved0 *#e addition ;a! !pread acro!! cate$orie! 21B0 international !taff member!" 1K0 national !taff member!" and 1C0 admini!trative !taff member!3E location! 2@D0 in #ead<uarter! and 140 in re!ident mi!!ion!3E and !ector!0 )uc# of t#e !taff increa!e came at lo;er !taff $rade! due to internal promotion! at #i$#er $rade!0 1@10 % revie; of t#e ;or6force e>pan!ion indicated t#at nearl #alf 24BI3 of t#e additional !taff member! 2t#i! tall include! bot# tec#nical and non-tec#nical !upport !taff3 ;ent into ,priorit !ector! and t#eme!. in t#e operation! department! and re!ident mi!!ion!" to !upport !taff capacit in pro8ect admini!tration and portfolio mana$ement" !afe$uard! compliance" $ender and development" and !ocial development0CD 7o;ever" durin$ con!ultation! ;it# %&' Co9! for t#i! report 2%ppendi> 43" Co9 member! identified !6ill !#orta$e! and $ap! acro!! a number of critical area!" includin$ in core area! of Strate$ 20200 Furt#er" !everal Co9! e>pre!!ed fru!tration over ;#at t#e perceive a! a de-prioritiGation and !tead de-!6illin$ of e>perti!e in t#eir area! in recent ear!0 1@20 *#e allocation of !taff ;it#in t#e or$aniGation i! a related concern0 4#ile t#e !taff increa!e re!pond! to con!i!tent evaluation me!!a$e! t#at %&' pa more attention to pro8ect implementation and !upervi!ion" bot# in tec#nical term! and in a!!urin$ due dili$ence and $ood $overnance" t#e additional !taff member! ;ere !cattered acro!! variou! department! and divi!ion!0 Fi$ure 12 provide! a ba!ic illu!tration of #o; international !taff 2b 8ob titleE !ee note under Fi$ure 123 are !cattered acro!! or$aniGational unit! and core operational area!0 +nl four !ector !pecialiGation! #ave 10 international !taff member! or more in one department 2an indicator of a $ood critical ma!! of e>perti!e30 % critical concentration of tec#nical e>perti!e in area! of operation i! e!!ential to en!ure <ualit pro8ect! t#at deliver outcome! and !u!tainabilit 0
1@@0 *#e Co9! con!titute an informal approac# to 6no;led$e !#arin$" but t#eir u!e to en!ure !#arin$ and co#erence of approac#e! and 6no;led$e i! a c#allen$e0 *#i! i!!ue ;a! #i$#li$#ted in t#e 2012 6no;led$e evaluation 2footnote 203" ;#ic# !tated t#at %&'(! current or$aniGational !tructure fra$ment! !ector and t#ematic !6ill! in multiple unit! and team! acro!! re$ional department!" and pre!ent! a formidable c#allen$e to effective and efficient 6no;led$e mana$ement and !#arin$ acro!! t#e in!titution0 *#i! concern ;a! al!o voiced durin$ con!ultation! ;it# Co9! 2%ppendi> 430
CC CD
+peration! durin$ 200B=2012 repre!ented a KCI increa!e over 200@=200K0 %&'0 201@0 Revie; of Implementation of @-Fear 4or6force 9lan 2010=20120 )anila0
2 4 2 3 2 10 13 3 9
'9)S& L 'ud$et" 9er!onnel" and )ana$ement S !tem! &epartmentE C4R& L Central and 4e!t %!ia &epartmentE E%R& L Ea!t %!ia &epartmentE +REIL +ffice of Re$ional Economic Inte$rationE 9%R& L 9acific &epartmentE R) L re!ident mi!!ionE RS&& L Re$ional and Su!tainable &evelopment &epartmentE S%R& L Sout# %!ia &epartmentE SER& L Sout#ea!t %!ia &epartment0 Note: *#e c#art i! provided for illu!trative purpo!e! onl 0 *#e c#art !#o;! di!tribution of 2CB international !taff member!" !trictl b 8ob title" u!in$ a ro!ter provided b '9)S& for !taffin$ compo!ition a! of @1 +ctober 201@0 Staff member! ;ere !eparated into 1A cate$orie! b 8ob title" includin$ cate$orie! reflectin$ %&'(! five core operational area!0 %dvi!or! and #ead!" director! and deput director! ;ere placed in t#eir o;n cate$orie!0 In ca!e! ;#ere a po!ition #ad a furt#er !pecialt " !uc# a! a tran!port economi!t or an urban development !peciali!t 2;ater !uppl and !anitation3" it ;a! placed in t#e more !pecific cate$or 0 +perational !taff t#at #ave a !ector !pecialiGation but ;#o!e 8ob title doe! not indicate t#i! are e>cluded from t#i! illu!tration0 Source: IE& anal !i! ba!ed on '9)S& !taff ro!ter a! of @1 +ctober 201@0
1@40 +r$aniGational !tructure0 %&'(! current !tructure ;it# five re$ional department! i! intended to improve t#e countr focu!" but #a! led to a di!per!al of 6no;led$e and !6ill!0 *#i! ma e>plain ;# pro8ect mana$er! rel increa!in$l on con!ultant! for pro8ect ;or60 *#i! $ro;in$ reliance on con!ultant! #a! co!t!" includin$ for in!titutional 6no;led$e and !taff learnin$" a! #i$#li$#ted in t#e 2012 6no;led$e evaluation0CK 1@C0 *#e or$aniGational !tructure #a! been e>panded ;it# t#e addition of t;o vice pre!ident!0 *#e po!ition of vice pre!ident for private !ector operation! and co-financin$ i! intended to increa!e attention to 9S+" but #o; and ;#et#er t#i! ;ill improve coordination bet;een !overei$n and non-!overei$n operation! remain! unclear0 *#e 6no;led$e mana$ement and !u!tainable development vice pre!idenc a! !i$nificantl e>panded" but buildin$" deliverin$ and !#arin$ 6no;led$e acro!! t#e man location! in %&' ;#ere 6no;led$e i! and can be delivered and !#ared remain! a c#allen$e" a! doe! coordination bet;een 6no;led$e and operation! department!0 1@D0 &ecentraliGation0 *#ere #a! been !i$nificant pro$re!! in locatin$ !taff member! 2and fundin$3 ;it#in re!ident mi!!ion!0 7alf of t#e !taff member! in %&' re$ional
CK
% bac6$round anal !i! of %&' con!ultant utiliGation data" conducted b IE& a! part of t#e 2012 6no;led$e evaluation" !#o;ed t#at %&'(! annual procurement of con!ultant! 2b per!on-mont#" for all cate$orie! of con!ultant3 increa!ed b D4I durin$ 2002=20110
44
*#e increa!e in !taff at t#e re!ident mi!!ion! #a! not been accompanied b a corre!pondin$ tran!fer of re!pon!ibilitie! and aut#orit
K0 D0 C0 40 @0 20 10 0
D0
C10@ 4K0@ C001 400A 4D04 1B02 K0A B0B 110C 100A 140B 140B 2100 2A0@ 2002 @B0B
C0
@C02
9ortfolio 2- billion3
@0 20 10 0
2012
200K
200B
200A
Fear
2010
2011
7? 9ortfolio
R) 9ortfolio
%&' L %!ian &evelopment 'an6" 7? L #ead<uarter!" R) L re!ident mi!!ion0 Source: Independent Evaluation &epartment0 201@0 Corporate Evaluation Stud : &ecentraliGationH9ro$re!! and +perational 9erformance0 )anila0
Empo;erin$ re!ident mi!!ion! ;it# $reater tec#nical capacit and aut#orit ;ould move %&' to t#e ne>t p#a!e of decentraliGation
1@K0 *#e ob8ective of increa!in$ re!pon!ivene!! b locatin$ countr director!Hand more recentl deput countr director!Hin re!ident mi!!ion! i! undermined b t#e limited dele$ation of operational re!pon!ibilit and deci!ion-ma6in$ aut#orit from re$ional department #ead! to countr director!0 Empo;erin$ re!ident mi!!ion! ;it# $reater tec#nical capacit to underta6e core bu!ine!! activitie!" operational re!pon!ibilitie!" and deci!ion-ma6in$ aut#orit ;ould move %&' to t#e ne>t p#a!e of decentraliGation0 Increa!in$ *% bud$et under t#e di!cretion of Countr &irector! ;ould #elp0 %n important area ;#ere t#e role of re!ident mi!!ion! can be en#anced i! in 6no;led$e mana$ement" in particular t#e identification of countr 6no;led$e need! and potential 6no;led$e !ource! 2local t#in6 tan6!" non$overnment or$aniGation!3" and in 6no;led$e tran!fer and !#arin$ ;it#in and acro!! countrie!0 % differentiated approac# to dele$ation of re!pon!ibilitie! i! needed" ba!ed on t#e !pecific development conte>t!" demand!" and prioritie! of lo;-income countrie!" fra$ile and conflict-affected
CB
CA
From Nune 200A ;#en Central and 4e!t Re$ional &epartment 2C4R&3 introduced t#e 8oint-venture approac#" it! portfolio data are reported a! #ead<uarter!-admini!tered0 Corrected for t#i! c#an$e" t#ere ;ould be a !mall increa!e in t#e re!ident mi!!ion portfolio of C4R&0 7o;ever t#i! ;ould be !mall and t#e overall trend of t#e $rap# ;ould not c#an$e becau!e t#e increa!e in C4R& portfolio con!tituted a !mall part 2le!! t#an CI3 of t#e total %&' portfolio0 IE&0 201@0 Corporate Evaluation Stud : &ecentraliGation: 9ro$re!! and +perational 9erformance0 )anila: %&'0
9ercent
2101
40
'0
1@A0 Selectivit ;a! a drivin$ principle in t#e de!i$n of Strate$ 2020" and t#e re!ultin$ prioritiGation of core operational area! ;a! lar$el ba!ed on t#e ar$ument t#at %&' !#ould focu! on ;#at it doe! be!t0 *#i! ;a! captured in t#e operational $oal t#at five core operational area! ;ould compri!e B0I of total approval! b 20120 *#e actual di!tribution over 200A=2012 amounted to a cro;din$ out of mo!t area! of operation! ot#er t#an infra!tructure0 Independent Evaluation #a! maintained t#at countr pro$ram! ou$#t to be countr -driven 2i0e0" t#e could opt to mainl pur!ue ot#er intervention!" complementin$ corporate core area! of operation!30 *#e B0I tar$et i! a corporate tar$et t#at doe! not need to be applied ri$idl acro!! all countrie!0 4#ile infra!tructure #a! al;a ! been a main tar$et of %&' operation!" Independent Evaluation #a! ar$ued t#at t#e concentration of operation! in t#i! area ma need to be complemented b ot#er operation! to ac#ieve broader development outcome!0D1 For e>ample" t#e pur!uit of additional mea!ure! or operation! to reac# t#e poor t#rou$# cro!!-!ector outcome! ma increa!e inclu!ivene!! and #elp #uman development0 1400 Furt#er" !electivit need! to favor area! ;#ere private mar6et! and t#e private !ector ;ill not focu!0 %l!o" a! reco$niGed in Strate$ 2020" partner!#ip! are a 6e complement to !electivit in operation!0 %rea! t#at receive le!! operational focu!" but ;#ic# are nonet#ele!! critical for development outcome!" mu!t receive additional effort! from %&' to cro;d-in ot#er partner!0 Counter to t#e e>pectation! !et fort# in Strate$ 2020" t#e recent )&G evaluation found t#at partner!#ip! in #ealt#" education" and $ender #ave not blo!!omed a! anticipated 2footnote 1@30 *#i! i!!ue i! al!o #i$#li$#ted in IE&(! 2012 %nnual Evaluation Revie; 2%ER3" ;#ic# !tate! t#at t#e de$ree to ;#ic# !trate$ic alliance! and partner!#ip! #ave been built #a! been mi>ed0D2 %&'(! !elective en$a$ement at t#e countr level" a! captured in C9S" ou$#t to be driven b a countr (! de!ired development outcome!" includin$ 6no;led$e need!" and b partner!#ip opportunitie!0
D0 D1
'a!ed on anal !i! of bud$et data for 20120 IE&0 201@0 %nnual Evaluation Revie;0 )anila: %&'0 D2 IE&0 20120 %nnual Evaluation Revie;0 )anila: %&'0
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4#ile t#ere C0 9ro$ram" 9ro8ect" 9ro8ect" and %&' 9erformance #ave been operational 1410 4#ile t#ere #ave been a number of operational improvement!" performance in improvement!" deliverin$ pro8ect outcome! remained !ta$nant durin$ 1AAB=2012" ;it# DCI of pro8ect! rated effective or #i$#l effective0 9erformance #a! been mo!t di!parate in performance in lo;er )IC!" ;it# !ome countrie! performin$ far belo; avera$e0 9ro8ect! in FC%S deliverin$ 2!everal are )IC!3 #ave fared ;or!e on a$$re$ate" ;it# onl 41I rated !ucce!!ful in outcome! t#e 2000!" a !mall improvement from @BI in t#e 1AA0!0 Importantl " acro!! all remained borro;in$ countrie!" t#e criteria mo!t relevant to impactHdevelopment outcome! and !ta$nant
Even in !ector! and countrie! countrie! ;#ere overall !ucce!! ratin$! are $ood" t#ere can be particular !u!tainabilit i!!ue!
Note:
*#e four upper ri$#t <uadrant! indicate t#e percenta$e of operation! t#at pa!! t#e t#re!#old for effectivene!! and !u!tainabilit E t#e !um of t#e percenta$e! i! 4AI but appear! a! C0I due to roundin$0 Source: Independent Evaluation &epartment 2IE&3 &ataba!eE and IE&0 201@0 %nnual Evaluation Revie; 201@0 )anila: %!ian &evelopment 'an60
14@0 9ro$ram and pro8ect performance i! lar$el dependent on $ood pro8ect de!i$n b %&' and client!" $ood pro8ect implementation b client!" and $ood !upervi!ion b %&'0 +peration! department! #ave a lon$ ;a to $o in t#i! re$ard0 *#e 2010 &evelopment Effectivene!! Revie; reported t#at 2AI of 9CR! completed in 200B=2010 indicated pro8ect implementation problem!E 24I indicated pro8ect !upervi!ion i!!ue!
D@
IE&0 20110 Special Evaluation Stud : )ana$in$ for &evelopment Re!ult!0 )anila: %&'0
48
%&' bu!ine!! proce!!e! ma #ave been compre!!ed too muc# after !treamlinin$ in 2010
&0
Recommendation!
14C0 Strate$ 2020 called for in!titutional tran!formation to rai!e %&'(! performance" effectivene!!" and impact!0 4#ile !ome or$aniGational reform! #ave been underta6en !ince 200B" t#i! remain! an unfini!#ed" and in !ome re!pect! unclear" a$enda0 Nevert#ele!!" t#e re$ion and it! development c#allen$e! are rapidl c#an$in$0 *o 6eep up ;it# t#i! c#an$e and to ma6e a more con!e<uential contribution" %&' it!elf mu!t continue to c#an$e0 'u!ine!! a! u!ual i! not an option0 Si$nificantl increa!in$ t#e proportion of !ucce!!ful pro8ect! and pro$ram!" and improvin$ deliver on outcome!" re<uire! furt#er in!titutional and bu!ine!! proce!! reform!0
%&'(! !elective en$a$ement at t#e countr level need! to be driven b a countr (! de!ired outcome!" rat#er t#an uniform corporate tar$et!
14D0 *o improve t#e relevance" re!pon!ivene!!" and re!ult! of %&'(! operation! it! !elective en$a$ement at t#e countr level need! to be driven b a countr (! de!ired development outcome!" includin$ 6no;led$e need!" and b opportunitie! for partner!#ip!" rat#er t#an uniform corporate tar$et! t#at are !et b %&' on a re$ional ba!i!0 %n important !tep ;ould be to move be ond focu!in$ on individual pro8ect! de!i$ned and implemented b a !in$le divi!ion" and move to;ard co#erent countr pro$ram! t#at ta6e advanta$e of lin6a$e! and ! ner$ acro!! !ector and t#ematic intervention!" ;it# $reater emp#a!i! on t#e de!ired outcome! envi!a$ed under t#e t#ree Strate$ 2020 a$enda!0 In li$#t of t#e above" Independent Evaluation recommend! t#at %&' recon!ider t#e need for an B0I corporate tar$et for core area! of operation!0 14K0 Staffin$ and !tructure need more careful attention0 It i! imperative t#at %&' maintain a critical ma!! of !6ill! in 6e operational area! and department!" and addre!!
D4 DC
%&'0 20100 &evelopment Effectivene!! Revie;0 )anila0 IE&0 201@0 %nnual Evaluation Revie;0 )anila: %&'E and !ub!e<uent countr evaluation!0
a!!i!tance pro$ram
Evaluation! at countr and !ector level! !u$$e!t a number of action! to improve t#e lin6 bet;een output! and outcome!
*o deliver on it! $reat promi!e" %&' need! to #arne!! all it! re!ource!
DD
IE&0 20110 Special Evaluation Stud : %!ian &evelopment Fund +peration!0 )anila: %&'0
%ppendi>e!
4 9rioritie! Good Governance 9rivate Sector Gender 2;omen3 Environmental Su!tainabilit @ Sector 9rioritie! %$riculture and Rural &evelopment Social Sector! Infra!tructure and Finance
@ Strate$ic *#eme! 9rivate Sector &evelopment Re$ional Cooperation and Inte$ration Environmental Su!tainabilit 2none !pecified3
C *#ematic 9rioritie! Gender E<ualit Environmental Su!tainabilit 9rivate Sector &evelopment Re$ional Cooperation &evelopment Capacit 2none !pecified3
C &river! of C#an$e 9rivate Sector &evelopment Good Governance Gender E<uit 5no;led$e Solution! 9artner!#ip! C Core +perational %rea! Infra!tructure Environment Re$ional Cooperation and Inte$ration Finance Sector Education +t#er area! 7ealt# %$riculture &i!a!ter and Emer$enc %!!i!tance
D 9riorit Sector! 2Group 13 Road *ran!port Ener$ /rban Infra!tructure Rural Infra!tructure Education Finance Sector
%&' L %!ian &evelopment 'an6" :*SF L :on$-*erm Strate$ic Frame;or6" )*S L medium-term !trate$ie!" 9RS L 9overt Reduction Strate$ 0 Source: %&' !trate$ document!0
%99EN&IR 2: )%N+R %&' 9+:ICIES" 9:%NS" %N& G/I&E:INES %&+9*E& 'EGINNING IN 200B
Strate$ 2020 SectorJ*#emeJ%rea @ Strate$ic %$enda! Inclu!ive Gro;t# Environmentall Su!tainable Gro;t# Re$ional Inte$ration C &river! of C#an$e 9S& and 9S+ Good Governance and Capacit &evelopment Fear: *itle 201@: Guideline! on Inclu!ive Economic Gro;t# in t#e C9S 2!ee Environment belo;3 2!ee RCI belo;3
2012: 9ublic=9rivate 9artner!#ip +perational 9lan 2012=2020 2012: Re!ult!-'a!ed 9ublic Sector )ana$ement: % Rapid %!!e!!ment Guide 2012: Inte$rit 9rinciple! and Guideline! 2011: 9ractical Guide to Capacit &evelopment in a Sector Conte>t 2011: Revi!ed Guideline! for Implementin$ G%C%9 II 2010: Revi!ed Capacit &evelopment %ction 9lan 200B: Guideline! for Implementin$ G%C%9 II Gender E<uit 201@: Gender E<ualit and 4omenP! Empo;erment0 +perational 9lan 2201@= 20203 2012: Guideline! for Gender )ain!treamin$ Cate$orie! of %&' 9ro8ect! 5no;led$e Solution! 201@: 5no;led$e )ana$ement &irection! and %ction 9lan 2201@=201C3: Supportin$ Finance QQ 200A: 5no;led$e )ana$ement %ction 9lan 2200A=20113 9artner!#ip!a 200A: Cooperation %rran$ement! for &evelopment 9artner!#ip! C Core +perational +perational %rea! 2plu! @ ot#er!3 Infra!tructure 201@: Guideline! for Climate 9roofin$ Inve!tment in t#e Ener$ Sector 2tran!port" ener$ " 201@: /rban +perational 9lan 2012=2020 urban" ;ater and 2012: Implementation of Su!tainable *ran!port Initiative: )ain!treamin$ !anitation" ot#er!3 Road Safet in %&' +peration! %ction 9lan 2011: 4ater +perational 9lan 2011=2020 2011: Guideline! for Climate 9roofin$ Inve!tment in *ran!port Sector: Road Infra!tructure 2010: Su!tainable *ran!port Initiative 200A: Ener$ 9olic Environment 201@: Environment +perational &irection! 201@=2020 2010: %ddre!!in$ Climate C#an$e in %!iaJ9acific: 9rioritie! for %ction 200A: Safe$uard 9olic Statement Re$ional Cooperation 2012: % Strate$ic Frame;or6 for t#e C%REC 9ro$ram 2011=2020 and Inte$rationb 2012: G)S Re$ional Inve!tment Frame;or6 201@=201Kc 2011: G)S Economic Cooperation 9ro$ram Strate$ic Frame;or6 22012=20223 2011: Re$ional Cooperation Strate$ : Sout# %!ia 2011=201C 200A: %&'(! 9acific %pproac# 2010=2014 Finance Sector &evelop 2011: Financial Sector +perational 9lan Education 2010: Education b 2020H% Sector +peration! 9lan 200B: Education and S6ill!: Strate$ie! for %ccelerated &evelopment +t#er! 2014: Inte$rated &i!a!ter Ri!6 )ana$ement +perational 9lan 2in preparation3 2#ealt#" a$riculture" 201@: +perational 9lan for %NR Sector: 9romotin$ Food Securit in %!ia and di!a!ter and emer$enc t#e 9acific 2014=2020 2in preparation3 a!!i!tance3 201@: Social 9rotection +perational 9lan 201@=2020 2&raft3
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%&' L %!ian &evelopment 'an6" %&F L %!ian &evelopment Fund" %NR L a$riculture and natural re!ource!" C%REC L Central %!ia Re$ional Economic Cooperation" C9S L countr partner!#ip !trate$ " &)C L developin$ member countrie!" G%C%9 II L Second Governance and %nticorruption %ction 9lan" G)S L Greater )e6on$ Subre$ion" FC%S L fra$ile and conflict-affected !ituation!" :IC L lo; income countr " )IC L middle income countr " 9S& L private !ector development" 9S+ L private !ector operation" RCI L re$ional cooperation and inte$ration0 Note: *#i! table e>clude! !tudie!" mo!t $uide!J$uidance note!" polic paper!" !taff in!truction!" and +peration! )anual revi!ion!Jaddition!0 a *#e %&' Strate$ and 9olic &epartment li!t! a total of @@ partner!#ip a$reement! of variou! form! 2letter! of intent" memoranda of under!tandin$" partner!#ip frame;or6!" etc03 dated Nanuar 200B to +ctober 20120 b E>clude! numerou! re$ional and !ubre$ional cooperation !trate$ie!" pro$ram! and operation! bu!ine!! plan!0 c *#e frame;or6 cover! labor mi$ration" urban development" ener$ " and tran!port and related !ervice!0 Source: Independent Evaluation &epartment0
'0
+perational Focu! 2i3 2ii3 2iii3 2iv3 )aintain an emp#a!i! on infra!tructure but improve it! !trate$ic impact! t#rou$# $reater inclu!ivene!! and !u!tainabilit E re!pond better to uni<ue c#allen$e! facin$ middle-income countrie! and fra$ile and conflict-affected !tate! t#rou$# better dia$no!tic!" 6no;led$e ;or6" and coordinationE refocu! on en#ancin$ $overnance t#rou$# lon$-term !upport for public !ector mana$ement and capacit development" in particular at t#e !ector levelE improve t#e inclu!ivene!! and !u!tainabilit impact! of private !ector operation! t#rou$# !tron$er en$a$ement" better 6no;led$e ;or6" and $reater effort! in frontier countrie! and re$ion!E and adopt a more countr -centric approac# to !electivit and a more ver!atile portfolio to improve re!pon!ivene!!0
2v3
C0
In!titutional Effectivene!! 2i3 Empo;er re!ident mi!!ion! t#rou$# a $reater dele$ation of portfolio aut#orit t#at ;ill allo; re!ident mi!!ion! to better !erve client $overnment! and more effectivel en$a$e ;it# development partner!E increa!e t#e impact of t#e %&' 6no;led$e ;or6 t#rou$# a !#arper focu! on countr 6no;led$e need!" better coordination" and $reater focu! on innovation and !#arin$E en!ure %&'(! re!ource ba!e remain! ade<uate t#rou$# better levera$in$ and innovationE improve t#e levera$in$ of partner!#ip! t#rou$# more up!tream dialo$ue" plannin$" and coordination" and t#rou$# !tron$er en$a$ement ;it# civil !ociet E place $reater focu! on #i$#-impact communit -driven pro8ect!" !ector-ba!ed approac#e!" and ac#ievin$ !ector outcome!E ma6e doin$ bu!ine!! ;it# %&' ea!ier t#rou$# continued bu!ine!! proce!! reform!E and in!till a !tron$er focu! on re!ult! and outcome! acro!! t#e in!titution to rai!e %&'(! contribution to development effectivene!!0
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