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World Bank Document People in fragile and conflict-affected states are more than twice as likely to be undernourished as those in other developing countries, more than three Public Disclosure Authorized times as likely to be unable to send their children to school, twice as likely to see their children die before age five, and more than twice as likely to lack clean water. On average, a country that experienced major violence over the period from 1981 to 2005 has a poverty rate 21 percentage points higher than a country that saw no violence. No low-income fragile or conflict-affected country has yet achieved a Public Disclosure Authorized single Millennium Development Goal. —The World Development Report 2011: Conflict, Security, and Development Public Disclosure Authorized The State and Peace-Building Fund STATE- AND PEACE-BUILDING FUND Global Center on Conflict, Security and Development (CCSD) Operations Policy and Country Service ANNUAL REPORT The World Bank 1818 H Street NW Washington, DC 20433 USA Tel. +1 202 458 0352 Fax. +1 202 522 2266 Public Disclosure Authorized email: [email protected] 2012 www.worldbank.org/fragilityandconflict © 2012, The World Bank For more information on the work of State- and Peace-building Fund, please contact: The State- and Peace-building Fund (SPF) Global Center on Conflict, Security, and Development (CCSD) Washington, D.C. Operations Policy and Country Services (OPCS) The World Bank 1818 H Street, NW Washington, D.C, 20433 USA Nairobi 2nd Floor, Shelter Afrique House Longonot Road, Upper Hill P. O. Box 30577-00100 Nairobi, Kenya Telephone: +1 202 458-0352 E-mail: [email protected] Web address: www.worldbank.org/fragilityandconflict ABBREVIATIONS AND ACRONYMS AFR Africa Region CCSD Global Center on Conflict, Security and Development EAP East Asia and Pacific Region ECA Europe and Central Asia Region FAO Food and Agriculture Organization FY Fiscal year GDP Gross domestic product IBRD International Bank for Reconstruction and Development IDA International Development Association LAC Latin America and the Caribbean Region LICUS Low Income Countries Under Stress (Trust Fund) MENA Middle East and North Africa Region MTR Mid-term review NGO Nongovernmental organization PCF Post-Conflict Fund SAR South Asia Region SPF State- and Peace-Building Fund WDR World Development Report STATE- AND PEACE-BUILDING FUND ANNUAL REPORT CONTENTS FISCAL YEAR 2012 2 PREFACE By Joel Hellman, Director, Global Center on Conflict, Security, and Development PART I. OVERVIEW OF THE STATE- AND PEACE-BUILDING FUND (SPF) 5 The evolution of fragility- and conflict-focused trust funds within the World Bank 10 Defining features of the SPF 10 How the SPF is governed and managed 11 How grant making works 12 What is supported, and where PART II. FISCAL YEAR 2012 PROGRAM HIGHLIGHTS 14 The FY12 SPF engagement strategy 16 Revision of the SPF-Level Results Framework 17 The SPF mid-term review 18 Learning and knowledge sharing PART III. STAND-ALONE PROJECTS 20 Somalia : Drought management and livelihood recovery 22 Guinea-Bissau: Technical assistance to extractive industries 24 Liberia: Civil-service reform, capacity building, access to justice and accountability 26 Libya: Transition assistance 27 West Bank and Gaza: Water supply and sanitation in West Bethlehem villages 29 Jordan, Lebanon: Mitigating the impact of population displacement from Syria PART IV. STRATEGIC INITIATIVES 30 What constitutes a SPF strategic initiative? 31 Central America: Citizen security in the northern triangle 33 Eastern Europe and Central Asia: Regional initiative on fragility and conflict 36 PART V: FINANCIAL SUMMARY ILLUSTRATIONS AND ANNEX 6 FIGURE 1: Grant Amounts Approved for PCF, LICUS, and SPF, 1998–2012 (Cumulative) 8-9 MAP 1: PCF, LICUS, and SPF Trust Fund Grants to Fragile and Conflict-affected Countries, 1998–2012 11 FIGURE 2: SPF Grants by Recipient or Implementation Type, Fiscal Year 2009–12 12 FIGURE 3: Results Objectives among State-building Projects (Percent) 12 FIGURE 4: Results Objectives among Peace-building Projects (Percent) 13 FIGURE 5: SPF Funding Commitments by Bank Region, Fiscal Year 2009–12 (Percentage of total) 16 FIGURE 6: Revised SPF Results Framework 18 FIGURE 7: MTR Areas of Inquiry 36 TABLE 1: SPF Donors (as of June 30, 2012) 36 TABLE 2: Project Disbursements by Year (as of June 30, 2012) 37 FIGURE 1: SPF Commitments by Region and FY (US $ Millions as of June 30, 2012) 37 FIGURE 2: Regional Composition of SPF Portfolio, FY09 Versus FY12 (percent of total SPF Commitments, as of June 30, 2012) 37 TABLE 3: SPF Commitments by Recipient Type, Through FY12 (US$ Millions, as of June 30, 2012) 38 ANNEX 1: Description of Approved Projects/Strategy Initiatives 1 preface he overarching goal of the the world, and an innovative regional strategy to test and extend measures that mitigate fragility and State- and Peace-building Fund conflict in the Caucasus and Central Asia. Strategic initiatives, described in Part 4 of the report, are (SPF) is to address the needs of packages of SPF assistance to support “conflict- state and local governance by and fragility-sensitive” strategies aligned with WDR findings. These initiatives expand the SPF’s support Tsupporting measures to improve governance, beyond one-off stand-alone projects and encourage greater impact and catalytic value of SPF invest- institutional performance, reconstruction, and ments. Strategic initiatives draw upon the core strengths of the SPF: flexibility, partnership, and development in countries emerging from, in, innovation. In addition to strategic initiatives, the SPF sup- or at risk of sliding into crisis or arrears. ports projects that address the challenges of fragil- Established in FY09, the SPF is the World ity and create a foothold for wider development involvement. The SPF is unique in that it finances Bank’s only global multi-donor trust fund to projects in countries that are in arrears, such as Somalia, Sudan, and Zimbabwe, enabling the World support projects that contribute to prevention Bank to remain engaged and assist in transitions toward recovery and re-engagement. and recovery from conflict and fragility. With Currently, more than 40 World Bank operations its support to recipient-executed activities, the are actively contributing to state-building; a selec- tion of these stand-alone projects are illustrated in SPF has become an important entry point for Part 3. The SPF in 2012 also performed important work in peace-building. The rehabilitation of water early and catalytic financing for peace-building and sanitation systems in five West Bank villages may seem like a small step; however the SPF grant and state-building. takes on greater significance because it also repre- sents an instance where cooperative planning and recognition of shared interest have guided a process of positive change. As a share of overall World Bank support to In addition to strategic initiatives and new fragile and conflict-affected countries, the SPF stand-alone grantmaking, FY2012 was a productive represents a small program. Yet as this report illus- year in other respects. The year began by revising trates, SPF grants are beginning to respond to the the SPF Engagement Strategy in response to the challenge posed in the 2011 World Development challenges posed by the 2011 WDR. That was fol- Report: Conflict, Security and Development (2011 lowed by revisions to the SPF’s Results Framework, WDR)—how to encourage development progress in which is used to guide fund-level performance. The countries impacted by conflict and fragility. conceptual changes were then matched with practi- There is a distinction between grants that are cal changes to the process of soliciting, developing, “merely” innovative, timely, and responsive, and and approving proposals. The SPF also launched an those that aim at transformative change. That dis- in-depth mid-term review of its program to both tinction is highlighted in newly proposed strategic reflect on progress to date and ensure the SPF is initiatives that the SPF authorized for funding this “fit for purpose” moving forward. past year. These initiatives include an “integrated Beyond the implications of the WDR, the SPF has approach” to scaling up citizen security in Central a role to play in the implementation of the New Deal America, ranked as the most violent subregion in for Engagement in Fragile States. The New Deal is 2 essentially designed to place more emphasis on country leadership and ownership of the transition out of fragility and identifies peace-building and state-building goals as the reference for guiding work in fragile and conflict-affected states. The World Bank is committed to support implementa- tion of the New Deal, and the SPF is viewed as a natural vehicle for support and potential funding of projects under the New Deal at the country level. The SPF will also continue to foster partnerships between development, security, humanitarian and justice actors, and with nongovernmental institu- tions, through integrated project approaches. The SPF has been working closely with other interna- tional trust fund partners focused on conflict and fragility, including with the UN Peace-building Fund, on countries of shared interest. Moving forward, findings and recommendations from the mid-term review (released in Fall, 2012) will inform the SPF’s strategic and operational approach. With a robust evidence base, the mid- term review aims to set a renewed direction for the SPF, thus ensuring that the SPF reaches its full potential as the World Bank’s pre-eminent global multi-donor trust fund addressing conflict and fragility. Joel Hellman Director, Global Center on Conflict, Security, and Development (CCSD) Chair, SPF Committee October 2012 SPF ANNUAL REPORT 2012 3 PART I: OVERVIEW OF THE STATE- AND PEACE-BUILDING FUND The State- and Peace-Building Fund was created in 2008 to consolidate and advance the World Bank’s strategic approach to conflict and fragility. The SPF operates at the intersection of development, conflict prevention, post-conflict reconstruction, and peace-building within the World Bank’s legal and policy framework.
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