World Bank Institute Annual Report 2006 38907 Developing Capacities in Countries

Public Disclosure Authorized CONTENTS

Foreword 2

External Advisory Council 4

The Year in Review: Sharpening WBI’s Comparative Advantages 7

Capacity Development: WBI’s Stock in Trade 19

Working in Tandem with the Bank’s Regions: Deepening Our 29 Country Focus

Public Disclosure Authorized WBI’s Global Programs 41

WBI’s Thematic Programs: FY06 Highlights 49

Capacity Multipliers: Technology and Partnerships 57

Learning through Evaluation 63

Appendixes 1. Budget for FY05 and FY06 67 2. Management 68 3. Thematic and Regional Distribution of Programs, 69 FY04–FY06 4. Focus Countries by Region, FY06 70 Public Disclosure Authorized 5. Partners 71 6. Scholarships and Fellowships 75 7. Publications 77 Public Disclosure Authorized 2006 annual report

 FOREWORD Paul Wolfowitz, World Bank President

CAPACITY IS AT THE HEART OF DEVELOPMENT EFFECTIVENESS. It is the ability of individuals, institutions, and societies to solve problems, make informed choices, define their priorities, and plan their futures. The development community recognizes that increasing resources alone will not, in and of itself, reduce poverty. The Paris Declaration on Aid Effectiveness, signed by more than 100 multilateral and bilateral donors and developing countries, states that the “capacity to plan, manage, implement, and account for results…is critical for achieving development objectives.” Public, private, and nongovernmental organizations must have the skills to manage resources effectively.

But strong capacity cannot be achieved overnight. monitoring, urban management, social accountability, It is like a garden that needs to be cultivated over time. climate change, HIV/AIDS, trade, improving the investment Capacity development is a long-term process requiring climate, and leveraging public-private partnerships. WBI’s both supply- and demand-side solutions—the supply clients include government policy makers, educators and of well-structured and efficient public and private trainers, private sector leaders, media professionals, and organizations and institutions, and civil society’s parliamentarians, who attend a range of learning activities demand for government accountability and improved including courses, seminars, multicountry policy dialogues, public sector performance. and leadership training activities.

The World Bank Institute (WBI) is one of the World Bank’s As part of its work to support and develop leaders the main instruments for developing capacity through the Institute has worked with cabinet ministers to help them exchange of knowledge and learning. In addition to gain access to information and ideas, stay abreast of its regional and global programs, WBI supports key issues like globalization and trade, achieve strategic long-term capacity development in 45 focus countries objectives through action planning and results-based through multiyear programs. Fourteen of these countries management, and work across multidisciplinary and are in Africa, where WBI will be playing a key role in interministerial teams. These kinds of programs have the Bank’s Africa Action Plan. The Institute helps these been offered in Madagascar, Senegal, and Tajikistan. countries define their learning needs and works with local officials and Bank operational staff to design In Ghana, Kenya, Tanzania, and Uganda WBI is using national capacity development strategies and programs digital radio technology to develop the capacity of local to fill those needs. public officials, mayors, and civil society representatives to design tools for combating corruption. In Morocco, In FY06, more than 90,000 people took part in WBI the Institute delivered a high-level leadership program training and capacity building activities on such topics for 33 governors of Moroccan provinces and regions as strengthening parliamentary oversight, poverty in support of judicial reform that would help increase world bank institute

 citizen access to public services. In Brazil’s Amazon economic hardships, rely the most on public services, region, WBI is developing capacity at the municipal and are least able to pay the extra costs associated level in public administration and management of with bribery, fraud, and the misappropriation of environmental and social issues. In Asia, WBI has been economic privileges. working with the Administrative Staff College of India to create certification programs for city managers. WBI’s Global Governance Program supports the Bank’s governance and anticorruption agenda by conducting In the past year, I have traveled to nearly 30 countries empirical research and publishing worldwide indicators and met with people from all walks of life. Across all of the prevalence and socioeconomic impact of societies, people from all economic and cultural corruption in more than 200 countries and territories. backgrounds have voiced the same aspirations again It also works with the media, legislatures, and civil and again: people want opportunities, and they want society to support public demand for good governance. a better future for their children. In FY06 the program was active in more than 30 countries.

But they will achieve these things only if they have a Where local knowledge is allowed to flourish and government that can deliver on its promises and uphold contribute to global knowledge, where people learn the law; one that knows how to listen, treats its citizens from one another as they also innovate on their own, fairly, and protects their rights. People need transparent and where global and local knowledge inform choices, and accountable institutions, an independent judiciary, people are better able to rise to the challenge of a free press, and a vibrant civil society. fighting poverty. I invite you to explore this annual report, which highlights some of the innovative ways in Poor governance and corruption hurt every citizen—but which WBI has helped countries share their knowledge especially the poor. They are already hit the hardest by and experiences in the service of development. 2006 annual report

 EXTERNAL ADVISORY COUNCIL

The World Bank Institute’s External Advisory In considering WBI’s role in supporting the development of capacity, the council first identified WBI’s comparative Council, founded in 1997, convened in advantages and key attributes: Washington for its annual meeting on ● As the only multisectoral, global vice presidential unit in the World Bank Group, the Institute is able to apply October 25–26, 2005. On the agenda frameworks from one network to sector operations in were several critical challenges facing another and to broker inter-regional cooperation. ● Unlike other Bank units, WBI is able to work with WBI and other capacity development a wide range of nontraditional and subsovereign institutions—among them aid parties—including parliaments, NGOs, civil society, journalists, and youth. WBI is the hub of a global range harmonization, state building, conflict of partnerships with hundreds of institutions worldwide. prevention, the development of ● WBI’s activities are increasingly integrated with country finance and investment operations. foundational capacity, knowledge ● Because it works within a longer time frame than sharing through technology-based investment operations, WBI has staying power. ● WBI is agile, innovative, adaptable, and able to learning, and exchanging knowledge respond rapidly to emerging issues. It thus is able and best practices in capacity development to pilot innovative responses. ● WBI provides space for thought and innovation—a with middle-income countries and the laboratory to generate and test new ideas. countries of the Organisation for Economic The Council advised WBI to continue on its path of Co-operation and Development. A key becoming more selective, counseling that—despite its motif running through the discussions inclusiveness and vision, and fast-growing demand for its products and services—the Institute cannot hope was the best means of leveraging the to do everything, everywhere. As demonstrated in the comparative advantage of a global report that follows, WBI has responded to the council’s recommendations through program consolidation and institution such as WBI to achieve the by further concentrating its resources on focus countries. greatest benefit from fixed resources. world bank institute

 President Paul Wolfowitz and Vice President Frannie Léautier, with members of the External Advisory Council, before their meeting with the World Bank’s Committee on Development Effectiveness on October 25, 2005

BACK ROW FRONT ROW Mme. Huguette Labelle Baroness Helena Kennedy Chair, Transparency Queen’s Counsel International, Germany Former Chairperson, British Council Former Chancellor, United Kingdom University of Ottawa Canada Ambassador Ruth Jacoby Director General, Dr. Adele Simmons Ministry of Foreign Affairs Vice Chair, Chicago Metropolis 2020 Sweden USA Professor Pepi Patron Dr. Jan-Olaf Willums Professor of Philosophy, Head, Inspire Management AS Pontificia Universidad Católica Norway del Perú Peru Mr. Syed Barbar Ali Advisor, Packages Ltd., Lahore Professor Heba Handoussa Pakistan Advisor, Economic Research Forum for Arab Countries, Iran, and Turkey Ms. Kim Jones Arab Republic of Egypt Vice President, Global Education and Research, Sun Microsystems USA Professor Sir Partha Dasgupta Chairman, Faculty Board of Economics and Politics

University of Cambridge 2006 annual report United Kingdom

 world bank institute

 From Frannie A. Léautier, Vice President, World Bank Institute THE YEAR IN REVIEW SHARPENING WBI’S COMPARATIVE ADVANTAGES

THE WORLD BANK INSTITUTE (WBI) HAS EVOLVED OVER THE YEARS in response to lessons learned about how countries develop the capacities that are critical for economic development. In this respect, fiscal year 2006 (FY06) has been an outstanding year of learning, progress, and change. We increased the impact of our programs by reinforcing our country focus, becoming even more selective about the areas in which we worked and in the type of programs we offered, and aligning our activities with the objectives of the World Bank’s regional operations.

Among the highlights of the year are the increased global In support of closer recognition of the work we do on governance, with a alignment with the record number of people accessing the Governance Bank’s operational Indicators database; success in encouraging countries in priorities, we formed a new Africa to learn from Finland, Korea, China, Ireland, and Capacity Development Unit India how to build a profitable “knowledge economy” in FY05. During the past year (page 45); and a very successful sharing of knowledge by that unit has been sharing countries as diverse as Brazil, Turkey, and South Africa on knowledge with the Bank’s the use of conditional cash transfers to reduce inequality. country teams on the design, measurement, and evaluation In response to recommendations by the World Bank’s of capacity development Committee on Development Effectiveness (a committee initiatives. This year’s Capacity Day on “Rethinking of the Bank’s Board of Executive Directors) and WBI’s Organizations” was the highlight of a series of activities External Advisory Council (page 4), the Institute began organized by this group (page 24). to implement some important changes this year, all within the context of its ongoing strategy of working closely with WBI’s Regional Coordination group, created in selected “focus countries”—countries that are well- FY03, has developed increasingly effective processes positioned to benefit from WBI’s programs and services. for aligning programs with country strategies. The Institute has moved toward country-based budgeting Because capacity development requires well-targeted to facilitate the transition to customized country and sustained interventions that address specific organiza- programs while maintaining budgetary resources tional and institutional issues as well as individual skills, we for critical global and regional thematic programs. consolidated our 15 thematic and sectoral learning programs In FY06 focus-country activities accounted for some (page 49) into 10 over the course of the year. Selectivity 50 percent of our program resources. implies a reduced number of activities delivered in multiyear programs that are more carefully customized and designed to Dialogue is one of the tools that allow countries to meet the needs of our focus countries. At the same time, we undertake large-scale transformation of their societies. are aiming a growing number of our activities at high-level To create space for dialogue within and across countries, policy makers and influential groups that make the greatest WBI invested heavily in the Global Development Learning use of the knowledge they acquire through WBI (page 65). Network (GDLN), beginning five years ago. This network 2006 annual report

 now boasts some 120 Affiliates (page 58). As part of our WBI measures the quality and impact of its activities integration with the Bank’s regional units, we transferred through participant feedback and tracer studies that 25 percent of GDLN resources to regional teams to help are analyzed by our Internal Evaluation Group (WBIEG). align authority with accountability in local centers. WBIEG’s ratings of the relevance and usefulness of WBI information continue to be strong, attesting to the fact Capacity development is a major challenge for Africa. that the content matches participants’ objectives and To grow toward the Millennium Development Goals, learning needs. The Institute has begun developing new Africa needs to have effective states and engaged instruments for measuring organizational capacity and societies. The World Bank’s Africa Capacity Building has initiated an in-depth study of WBI’s performance Task Force has called on WBI to increase its work and impact in several large countries in which WBI has in Africa, where we already deliver 27 percent of our a long-term and intensive engagement. That study is activities. The Bank’s Africa Action Plan, which incorporates expected to shed light on successful and unsuccessful and expresses the task force’s findings, recommends capacity development practices (page 66). that we concentrate our support in selected countries and in areas where we have a comparative advantage. Those areas include anticorruption, public expenditure WBI’s evolving mission and financial accountability, and public-private partnerships in infrastructure, among others. For most of its 50-year history, WBI focused on training Next year, WBI will have 14 focus countries in Africa, government officials in developing countries to better up from 9 in FY06 (page 11). manage economies for growth. Originally known as

FIGURE 1.1 Key phases of WBI’s evolution from training to capacity development, 1955 – 2005

SKILLS ERA POLICY AND PRACTICE ERA INSTITUTIONS ERA

Senior policy Investing in people seminars, sector Courses in general and ideas: WBI as management projects, sectoral a center for global seminars, projects, and national knowledge & and training of economic management learning trainers 1963–1973 1983 –1990 1995 –2001

1955–1962 1974 –1982 1990–1994 2002 – 2005 Courses in general Courses in project Return to project Country-focused economic analysis, national analysis and capacity development development for economic management & knowledge sharing ca. 20 government management, courses and on key global themes. officials per year and management privatization About 100,000 of development of state-owned participants per year.

world bank institute enterprises

 the Economic Development Institute, the nonlending implement policies, projects, and programs. We accomplish knowledge and learning arm of the World Bank took that mission by helping clients develop capacity at the pride in helping its participants develop independent individual, organizational, and institutional levels through skills to formulate and implement development policies. thematic learning events, technical assistance, and Over the years, the numbers of participants in these economic and sector work, all amplified by advanced programs expanded dramatically, and the Institute’s technology and an extensive network of partners. alumni grew to include leading practitioners across the globe. To date more than 500,000 people around the WBI’s strategy aims to develop country capacity in close world have participated in WBI programs. The Economic collaboration with the Bank’s regional operations, by Development Institute became the World Bank Institute designing and delivering customized programs for a small in 1999; WBI became a vice presidency in 2000. group of focus countries (36 in FY06; 45 in FY07), by delivering global and regional activities to address key But developing a nation’s capacity for sustained sectoral issues that go beyond country boundaries, and by growth and poverty reduction requires more than developing diagnostic tools to assess country capacity training programs for individuals. In the past three needs (box 1.1). years WBI has shifted its strategy toward developing tools and approaches to support fundamental institutional changes and to complement World Bank We are adjusting our country strategies. strategy

WBI has moved through several distinctive phases Evaluation results based on large client samples have in its evolution from a training institute to a capacity shown that WBI’s effectiveness—in raising awareness of development institute (figure 1.1). Today, WBI’s mission development issues, building knowledge and skills, and is to enable the Bank’s clients to acquire, share, and providing strategies and approaches that address apply global and local knowledge to solve problems, organizational needs—has increased steadily (page 65). make informed choices, order priorities, and plan and But other evaluations, as well as assessments by the

BOX 1.1 WBI in a nutshell: developing capacity, leveraging resources, improving effectiveness

WBI develops capacity at the individual, WBI leverages its resources WBI enhances the organizational, and institutional levels in the and reaches greater effectiveness of its World Bank’s client countries. It does this by: numbers through: programs through:

● Designing and delivering programs for focus countries ● Distance learning technologies ● Best-practice pedagogy while pursuing global and regional activities to address such as videoconferencing and in program design key sectoral issues that transcend country boundaries— e-learning ● Action learning for anticorruption and governance, environment, trade, ● A substantial network of increased relevance and investment climate, and knowledge for development partners that provide funding use of knowledge ● Developing and applying diagnostic tools to assess as well as content development ● Team learning to country capacity expertise and delivery capacity. increase the chances that ● Beginning in FY06, undertaking nonlending technical the ideas and knowledge assistance for capacity development. acquired will be implemented. 2006 annual report

 World Bank’s Committee on Development Effectiveness, ● Infrastructure, including water and urban infrastructure have suggested that WBI is spread too thin, delivering too (page 50), with a particular focus on fiscal accountability many activities in too many sectors. Those assessments, systems, the role of local governments in a globalizing which complemented earlier findings that WBI should world, and the role of the private sector and narrow its geographic focus, led WBI to make a strategic civil society, all of which are critical for adjustment in FY06. sustainable development. ● Capacity building for trade (page 55), with a specific By consolidating our thematic programs… focus on regional trade, behind-the-border constraints, trade in services, and country capacity to qualify for, and The essence of that adjustment was to be more selective, benefit from, membership in the World Trade Organization. further focusing the depth and concentration of the ● Capacity building for environment and climate change Institute’s work program, and to accelerate the ongoing (page 50), recognizing the need to build institutions alignment with the Bank’s regional operations. These for sustainability. In this regard the transfer of the strategic directions, coupled with budget reductions, Carbon Assist Program to WBI will allow us to provide have already brought about important changes. Most capacity development programs related to the notably, WBI reduced the number of sectors in which it burgeoning worldwide trade in emission rights. worked from 25 in FY05 to 15 in FY06, and will further reduce them to 10 in FY07. The number of WBI’s offerings WBI will pursue four other themes, but with partners for clients and staff was 828 in FY06. More than 90,000 in the lead. These are: participants were reached; and nearly half of total activities ● Finance and private sector development (page 51) were for focus countries, up from one-third in FY05. to maintain and scale up work we have been doing with the International Monetary Fund (IMF) on training On the advice of the Institute’s External Advisory central bankers and finance professionals, especially Council, WBI will focus in FY07 and beyond on six in the countries participating in the joint Bank-Fund thematic areas in which the Institute is already strong Financial Sector Assessment Plan. and has the potential to become even stronger. ● Poverty reduction (page 53) to maintain work in Those areas are: partnership with the IMF in building skills for countries ● Governance, because of the fundamental role preparing poverty reduction strategies. that governance plays in development (page 41). ● Agriculture and rural development (page 50–51), with a Institutions that generate good governance special focus on rural supply chains and rural productivity. have been found to be critical in achieving ● Leadership training (page 52), because of the critical large-scale poverty reduction. role leaders play in arriving at sustainable reforms and ● Education for a knowledge economy (page 45), sound choices in development. because of the critical role education plays in creating sustainable societies that are able to make choices …strengthening our Capacity across generations and geographies, and that can Development Unit create, innovate, and discover solutions to complex development problems. WBI has a history of innovating and piloting new approaches ● Health systems (page 52) to manage the increasing to capacity development. For example, WBI has developed challenges of communicable diseases and tackle the many tools to identify country capacity needs and ensure that

world bank institute capacity bottlenecks that hold countries back. they are addressed in the country assistance strategy (CAS.)

10 To consolidate this legacy of innovation and spread it … reinforcing our country-focused approach systematically throughout the Bank’s regional operations (both lending and nonlending), WBI in 2005 created a In FY06 a substantial and growing share of our program Capacity Development Unit (WBICD) to define, develop, budget was devoted to building capacity in 36 focus test, and refine capacity development products and services countries. Selected in close cooperation with the Bank’s (page 19). In collaboration with the Bank’s Operations Policy regional vice presidencies, the focus countries are a mix of and Country Services vice presidency (OPCS), Independent (a) middle-income countries that require cutting-edge Evaluation Group (IEG), Quality Assurance Group (QAG), knowledge and specific just-in-time advice on complex and others, the unit sets the Bank’s knowledge agenda development issues, (b) low-income countries, which, as a for capacity development. Its demand-based program prerequisite to participating in debt-relief programs, are responds to operational issues with which task teams in required to prepare poverty reduction strategies, and (c) the Bank are grappling. In FY06, WBICD produced six new low-income countries under stress in which capacity Capacity Development Briefs and organized a series of development is a major element of the World Bank’s Bankwide presentations on key topics. A seminar on the reengagement strategy. The number of focus countries is tension between project implementation units and the set to increase to 45 in FY07 (table 1.1). development of local capacity was the most popular staff seminar in the Bank this fiscal year. The Capacity Day 2006 Allocating a large share of our program budget to conference on Rethinking Organizations (see presentation developing the capacity of the focus countries allows on pages 24–27) brought together high-level participants WBI to respond effectively to the demands of the Bank’s from the public and private sectors to share information country teams, generating a body of results that can be about capacity development tools and assessment replicated and scaled up in other areas of the world. In methods and experiences. each focus country, WBI carries out a capacity needs

TABLE 1.1 WBI’s focus countries in FY07, by region

AFRICA EAST ASIA & EUROPE & LATIN AMERICA & MIDDLE EAST & SOUTH THE PACIFIC CENTRAL ASIA THE CARIBBEAN NORTH AFRICA ASIA

Burkina Faso China Bosnia and Argentina Arab Republic Afghanistan Burundi Indonesia Herzegovina Bolivia of Egypt Bangladesh Chad Lao People’s Kazakhstan Brazil Islamic Republic India Ethiopia Democratic Kyrgyz Republic Dominican of Iran Pakistan Ghana Republic Romania Republic Lebanon Sri Lanka Kenya Philippines Russian Guatemala Morocco Liberia Thailand Federation Mexico Republic of Madagascar Vietnam Tajikistan Yemen Malawi Turkey Mozambique Ukraine Nigeria Uzbekistan Senegal South Africa Tanzania

New in FY07 2006 annual report

11 assessment in consultation with the country teams to WBI’s multiyear capacity development program in India design customized programs to meet the identified needs identified several areas in which intensive, multiyear and, wherever possible, to design the capacity building capacity development activities were needed to support the component of the country assistance strategy (page 29). CAS objectives in four states where poverty is increasingly concentrated and public institutions are weakest—Bihar, In 2003, WBI created the Regional Capacity Enhancement Jharkhand, Orissa, and Uttar Pradesh. This program aims to Team (RCT) to work with country teams on strategic build consensus and champions of reform to strengthen approaches to assessing country capacity, design pro- local, state, and central governments in fiscal and public grams that respond to capacity needs, leverage existing expenditure management through high-level workshops partnerships within the country, and encourage country-led in partnership with leading institutions in India. capacity development strategies. The unit’s director manages the interface with the Bank’s regions and WBI also has worked closely with the World Bank’s team in oversees the delivery of country programs, working with Bangladesh, and with many external partners, to identify six regional coordinators. RCT has enabled WBI to embed sectors in which capacity development programs will have its programs squarely in many country assistance strategies a clear impact while complementing the Bank’s broader (from 11 major inputs in CASs in FY05 to 20 in FY06) and work program in the country, such as supporting the poverty scale up its customized activities at the country level (from reduction strategy process with sustained capacity building 307 activities in FY05 to 393 in FY06). in poverty measurement, monitoring, and evaluation. In Mexico thematic programs are sequenced over several World Bank country directors have cited significant years and integrated with other Bank activities for maximum improvements in the planning and coordination of capacity impact on capacity. One important initiative is our program development initiatives in their areas. “Over the past year on public administration and finance for municipalities. WBI has been at the core of the Bank’s activities in Turkey through its direct support for Turkey’s EU accession … and greater attention to organizational process, a key CAS pillar,” says Andrew N. Vorkink, the and institutional capacity Bank’s country director for Turkey. “By bringing top officials to Turkey from EU countries familiar with EU The shift to integrated, multisectoral, and multiyear negotiations, WBI knowledge transfer workshops have capacity development has required a shift from building greatly enhanced Turkey’s institutional capacity on the the skills of individuals in client countries toward greater road to Europe.” attention to organizational capacity—building teams of experts and leaders, encouraging organizational reform, … with multiyear programs in focus and in some cases fostering reform at national and countries that give capacity time to grow subnational levels of government. This, in turn, has required WBI to develop a more diversified set of products Evaluation results by WBIEG have indicated that the and services. The objective is to find the best instruments longer WBI stays in a country, the greater the payoff in for helping client countries meet their capacity require- capacity development. WBI has responded to such ments—mastering critical technical skills while helping to findings by developing a multiyear approach. Multiyear create an institutional environment that will facilitate programs are already a key feature of WBI’s presence in collective action among all development actors. Bangladesh, Brazil, India, and Mexico. In Indonesia, a resident capacity development adviser to the country Among institutions, WBI places particular emphasis on team is developing a national program to build capacity governance. In Morocco, for example, WBI has taken a

world bank institute at the local government level (page 32). leading role in the Initiative Nationale de Développement

12 Humain (INDH), a community-driven initiative to reduce countries or programs, are used by WBI’s task team leaders poverty launched in May 2005 with a sectorwide loan of as working capital to finance development and delivery of $200 million. The INDH is improving institutional infra- learning events. The shift in funding sources for WBI’s structure and governance systems to enable the govern- programs, with more dependence on contingent funds (from ment and communities to expand local access to social about 20 percent of total budget in FY03 to about 22 percent services and opportunities to earn income. WBI provides of budget in FY06), has required a commensurate response. assistance to the government on the capacity develop- ment component of the initiative. One important interven- tion was a high-level leadership program for 33 governors Who participates in WBI of Moroccan provinces and regions. programs?

Government officials make up approximately 40 percent We’re making other of the participants in WBI programs. Educators account adjustments as well... for some 22 percent; representatives of private firms, 16 percent; and representatives of nongovernmental organiza- WBI’s ongoing strategic adjustment extends to other areas tions, 9 percent. Increasing numbers of journalists, parlia- as well. The External Advisory Council has recommended, mentarians, and young people participate in WBI learning in addition to the focus areas mentioned on page 4, events (figure 1.2). Africa continues to be a top priority, with that WBI continue (a) to help build and support 27 percent of participants coming from this region. leading-edge institutions in client countries, scaling up the technical assistance we render to critical country WBI targets senior leaders and people in positions of institutions, (b) to help countries in transition toward influence in its programs, with an effort to scale up the impact middle-income status, (c) to work with nontraditional of its activities at the policy, strategy, and practice levels. partners (such as civil society, parliamentarians, and the Many of WBI participants are senior leaders in their media) and increase coordination with regional partners, organizations (figure 1.2) who also tend to make the most and (d) to strengthen the Bank’s framework on capacity operational use of WBI’s programs. However, to prepare development, helping to promote international consensus the next generation of leaders, who can generate change on a concept that is recognized as essential but remains in future years, WBI also targets youth. Another program surrounded by controversy and debate. that extends our reach to critical leaders in country is the World Bank Graduate Scholarship Program (appendix 6). We must do this with a declining budget. WBI’s budget grew during FY02–FY04, enabling us to launch the To improve our effectiveness in focus countries, we have country-focused strategy and significantly expand our reduced our targets for “participant training days.” reach as well as transform the skills mix of WBI staff to Compared with FY05, total participant training days fell deliver on the new strategy. For the period FY05–FY08, by some 37 percent to 315,538 in FY06. In FY06, WBI however, the budget is expected to decline by some 6.5 delivered 52 percent of its activities jointly with partners, percent in real terms. These cuts have spurred us to and half of WBI’s working capital came from donor increase productivity and to curtail certain programs and partners. We also have tripled the number of women services. Meanwhile, the quality of WBI’s work continues we reach—from 9,000 in FY01 to 28,000 in FY06. at high levels, as reflected by evaluation ratings.

A significant share of our external funding comes from TECHNOLOGY AND PARTNER- bilateral partners following consultations with donors to SHIPS EXTEND OUR REACH identify common development priorities. Some $12.4 million in donor funds were disbursed in FY06. These external On the advice of its External Advisory Council, WBI has resources, typically earmarked by the donor for specific made concerted efforts in recent years to create the critical 2006 annual report

13 mass needed for change in countries, encourage FIGURE 1.2 WBI programs reached record numbers dialogue and debate at the country level, and support of policy makers in FY06 local partners and local agents of change (figure 1.2). While lowering the total number of participants in our Our programs reached 36,000 government officials in FY06. programs, we have increased our reach in terms of ideas We are also reaching a large number of educators. and knowledge sharing through effective use of technology and a growing network of partners.

Technology multiplies the impact PARTICIPANTS (percent) of WBI innovations

AUDIENCE FY05 FY06 Distance learning technologies and centralized multimedia Government officials 32 40 services, delivered through an expanding array of partner- ships with external organizations, help WBI share knowledge Educators 35 22 with growing numbers of participants quickly and at low cost. NGOs 7 9

Private sector 19 16 Three-quarters of WBI activities are conducted face to face; the remainder are delivered using state-of-the-art 7 13 Other videoconferencing technology and the Internet. In addition to structured courses, WBI each day disseminates through its Web site the digital equivalent of 5,000 books, serves Other* more than 5,500 unique visitors, and every month meets 16,000 requests for Web casts over the Internet via the Bank’s B-Span. Our governance Web site is the most visited Private of all World Bank sites in any given month—traffic peaks sector Government when we launch the new series of governance indicators. officials

The Global Development Learning Network (GDLN), NGOs founded by WBI five years ago, is a partnership of learning centers that makeGov availableOfficial advanced information and communications technologies to people and organizations Educators working inInvesting development in people around the world. In FY06 some 927 learning,and ideas: knowledge EDI/WBI sharing, and communication as a Center for Global activities (of which 118 were for WBI) were delivered *“Other” includes parliamentarians, international organizations, donors, IMF staff, Bank staff, and media. Knowledge & through anLearning expanding network that now includes 120 network Affiliates (up from 76 in FY05). 1995-2001 Although GDLN now operates in a decentralized manner, WBI still houses the GDLN anchor unit, which provides logistical support and systems for GDLN activities and coordinates business policies and communication on behalf of the six regional GDLN teams across the World Bank. The WBI-maintained Web site, www.gdln.org, promotes collaboration among GDLN centers and their clients. It records some 100,000 successful

world bank institute page views each month.

14 Partners help us customize our Through rigorous best programs and deliver them to evaluation, we learn local audiences from our clients

Partnerships enable WBI to scale up its programs and WBI continuously improves its learning programs leverage limited resources. WBI continues to work with through systematic evaluations conducted by its internally national and international partners in the design and independent evaluation unit (WBIEG). In FY06, WBIEG’s delivery of training and knowledge sharing activities. Formal main analyses, evaluations, and research categories agreements between WBI and some 200 organizations included monitoring of immediate quality of learning leverage content expertise, staffing, funding, facilities, and activities, evaluations of outcomes, and strategic other resources (appendix 5). The Institute also works with evaluations and research studies (page 63). many other organizations under less formal arrangements. More than 50 percent of our FY06 programs were delivered WBIEG expanded its evaluation of WBI’s country-focus with significant partner involvement. approach during the year and analyzed data collected from 25 focus countries over four fiscal years (FY03–FY06). Partnership with a client country’s development institutions The unit surveyed more than 2,900 WBI clients in those helps strengthen local ownership and commitment, countries, asking them to rate the effectiveness of the mobilizes local resources, and helps to build local WBI capacity development programs in which they had capacity. Partnership with donor institutions—among participated and specify the degree to which they had them development cooperation agencies, multilateral used the knowledge and skills they gained. The results institutions, foundations, and the private sector—promotes show that WBI’s country focus is producing better cost-effective programming by coordinating activities outcomes than before (page 63). and harmonizing aid. This approach also helps build the capacity of in-country training institutions60 as they play Clients also rated the degree to which they had significant roles in joint activities. used the knowledge and skills they acquired for 50 57% academic purposes, such as research and teaching, 51% 52% By sharing administrative and logistical40 responsibilities49% and operational purposes, such as influencing with the partner, WBI becomes more cost effective. Its task legislation and developing organizational strategies. team leaders are able to increase30 the number of events Findings show that WBI clients in FY05 were significantly they manage. And local partners 20are able to improve the more likely to report using what they had learned as quality of their learning events. compared to their counterparts in FY01. Controlling for 10

0 FY03 FY04 FY05 FY06 FIGURE 1.3 WBI delivers half of its programs through partners

WORKING WITH PARTNERS % of activities undertaken jointly with others

60

50 57% 52% 40 51% 30 20 10 0 FY04 FY05 FY06

WBI works with in-country as well as international partners in the design and delivery of training and knowledge sharing activities. WBI’s partnership approach allows leveraging of the Institute’s core skills while also allowing in-country training institutions to play a significant role, thereby building their capacity. 2006 annual report

15 a number of variables, the FY05 ratings for overall use development teams with in-depth knowledge of were 8 percent higher than the FY01 ratings. the country. Demand for this kind of support has increased significantly. Also in FY06 WBIEG initiated several new studies that will improve internal performance measures for WBI and Meeting those demands with a shrinking (or even a provide more robust measures for assessing the impact steady) budget will require ever greater leverage and of capacity development services aimed at achieving efficiency. WBI must consider the means it uses to organizational and institutional change. WBIEG will also leverage its own efforts: partnering with outside initiate in-depth studies of WBI’s impact. organizations, training the staff of local institutions (including distance learning centers affiliated with GDLN) to improve their effectiveness, and improving the quality We’re looking to of the Bank’s capacity development interventions through the future closer integration with regional operations. We currently do all three, but the constraints of limited resources may Going forward, WBI will fine-tune its existing strategy and require trade-offs and a shift in balance. scale up the approaches and activities that work best. That will allow us to produce a framework, to be shared with the Balancing the tension between focus-country obligations wider development community, for assessing capacity and supporting the Bank’s global work. Breadth versus needs and approaches. We also will confront several depth, and global versus country-specific support, have emerging challenges. Each of these topics is briefly always been a source of tension for WBI as it designs its discussed below. programs. As the Institute further customizes its offerings to country needs, it will intensify its work in focus and Fine-tuning our strategy priority countries. Meanwhile, however, it will need to preserve the regional and global programs that so clearly Customization, alignment, and integration with operations serve the Bank’s corporate priorities and upon which WBI’s at the country level. During the next two years WBI’s ability to customize ultimately depends. broad strategy will be to implement and fine-tune its country-focused approach, building on its current But within the constraints of a declining budget package, collaboration with regional operations to support country WBI will continue to face trade-offs between further custom- assistance strategies and to meet country demand for izing programs for countries and doing more at the global capacity development programs. WBI will increase level. The choices will be driven by demand and informed by the depth of existing country programs, increase the medium-term (3–4 years) outcome evaluation results. Global number of focus countries to 45, and sustain or expand its programs with considerable externality and dynamic benefits successful global programs in governance and knowledge (such as trade, environment, and climate change) will be for development (page 41), all subject to the constraints of scaled up and better aligned to country programs. a declining budget. Flexibility and selectivity will be key. The share of our program budget devoted to customized Scaling up successful models of focus-country work is set to rise from 50 to 70 percent. capacity development at the country and sector levels Managing expectations: allocating limited resources in the face of growing demand. WBI helps improve the develop- In response to client demand, and as a result of the key ment effectiveness of financial investments by integrating lesson learned from the Shanghai cases (page 78)—that into multiyear country strategies (CASs and poverty countries with institutions that produced good governance reduction strategies) not only ongoing assistance, were most successful at scaling up their poverty reduction

world bank institute but also timely training interventions conducted by capacity programs—WBI will expand its work with media

16 professionals and parliamentarians, as well as its global Facing new challenges programs on governance and knowledge for development. The Africa Capacity Building Task Force has called WBI will seek to enhance programs that support newly on WBI to increase its work in Africa and support appointed governments, develop young leaders, help operational priorities. It also has recommended that the leadership teams improve the culture of results in their Bank’s Africa Region work closely with WBI to exploit the organizations, and support private corporations in their Institute’s full potential. As a result, WBI will conduct pursuit of socially responsible development. In the area diagnostic studies in 14 countries, embedding a strategic of e-leadership, WBI will focus on helping public and capacity assessment in each. WBI will also focus attention private sector leaders struggling to use technology to on working with media institutions, parliaments, and advance their objectives, whether to promote good judiciaries, and seek innovative ways to enhance governance at the country level, where technology can public-private partnerships in infrastructure. Scaling up its enhance transparency (through the use of Web sites to work on innovation systems, science, and technology will report public expenditures, for example), or to support also be needed to help Africa seek new opportunities effective teamwork across geographic boundaries, where for economic growth. Attention will be paid to trade and technologies such as videoconferencing and the Web can investment climate constraints. Helping country leadership help organizations develop new ways of working. teams develop the capacity to manage for results and evaluate poverty reduction policies and strategies will be By opening up and facilitating communication with stake- key. During implementation of the Africa Action Plan over holders in client countries, WBI can help forge a critical mass the next three years, WBI will work closely with the country for change at the country level—the essential “demand side” teams responsible for delivering results under the plan. of the development equation. People in power perform This work has already started in four of WBI’s African focus better when they are held accountable, and information— countries: Burkina Faso, Ethiopia, Ghana, and Nigeria. timely, plentiful, and authoritative—is the best accountability tool. WBI will strengthen its work on access to information in Creating capacity to support innovation a number of areas—among them building the capability of and to deal with emerging priorities media institutions and journalists to serve key oversight functions; creating spaces for policy debate and dialogue at WBI maintains its flexibility to support innovation. For the country level through the use of GDLN and interactive example, for middle-income countries, WBI and Bank technologies; enhancing its work to ensure voice and operations organized the Third International Conference accountability through participatory poverty reduction on Conditional Cash Transfers, at which participants strategies; and supporting civic engagement in government. exchanged experiences on this fast-growing innovation in social assistance (page 53). WBI also works in countries Developing a shared framework for emerging from conflict, such as Liberia, where the Institute assessing capacity needs and approaches delivered a leadership workshop for the legislative and the executive branches on the national budget process Despite the international consensus that capacity is (page 30). Energy and climate change are other emerging essential for successful development, it is defined and priorities. Under the Carbon Finance Assist Program, measured differently by different actors. Currently it is WBI activities included the annual Carbon EXPO and impossible to say how much the development community a range of skills-building events to help in reducing is investing in capacity and what impact those investments or capturing carbon emissions while building national are having. That must change if WBI and other develop- capacity to participate in the growing carbon market ment actors are to integrate and sequence their capacity (page 50). WBI has responded to the increasing demand development interventions. for assistance to cities and local governments by tripling its work in municipal management since last year. WBI’s Capacity Development Unit will play a leading role in researching capacity development issues and methods and in identifying and disseminating knowledge and best practice. A study being prepared by WBI, in consultation with other units of the World Bank, is expected to provide guidance in defining and analyzing this complex concept. The report of the Africa Capacity Building Task Force, in which WBI is well represented, also provides a basis for reassessing this issue in Africa. 2006 annual report

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18 CAPACITY DEVELOPMENT WBI’S STOCK IN TRADE

TRADITIONAL EFFORTS AT CAPACITY DEVELOPMENT HAVE FOCUSED primarily on creating or reorganizing government units and building individual skills. In view of many countries’ still-weak public sector capacity and with growing recognition of the critical importance of gover- nance, attention in recent years has turned to a broader and more holistic approach that defines capacity as the effectiveness and efficiency with which a country (or region) mobilizes and uses resources to define and achieve its development objectives on a sustainable basis (box 2.1). Thus, capacity development is a long-term process requiring attention to both the supply and demand sides of the capacity challenge—the supply of well-structured and efficient public and private organizations and institu- tions, and demand from civil society for government accountability and improved public sector performance.

The supply side of capacity captures much of the On the demand side, the priorities are to strengthen traditional view of capacity as comprising material the institutions that produce good governance and resources, technical skills, and organizational capability expand civil society’s understanding of key development to make and implement appropriate policy decisions. issues. This means enhancing the flow of information The demand side relates to the decision processes that through the development and dissemination of determine how countries set priorities and the ability of individual country and cross-country comparative citizens and other stakeholders to make government performance indicators, promoting competition in ideas accountable for outcomes. and multistakeholder dialogue (involving governments, parliamentarians, journalists, NGOs, and other groups), On the supply side, recent evaluations of capacity facilitating cross-country learning and expanding development point to some generic issues that need communities of awareness, and fostering a stronger to be addressed more systematically. First, most efforts commitment to transparency in government and at capacity development remain fragmented, making it increased attention to results. difficult to capture cross-sectoral influences and to draw general conclusions. Many capacity development activities are not founded on rigorous needs assessments and do Enhancing countries’ not include appropriate sequencing of measures aimed at capacity to achieve institutional or organizational change and individual skill development goals building. What is needed is a more comprehensive and sustained approach, one that builds a permanent capacity As a result of its 50 years of experience in the design to manage sectors and deliver services. Finally, better and delivery of learning programs and services, tools are needed to track, monitor, and evaluate capacity WBI today enjoys comparative advantages that enable development efforts. it to fill a distinct niche in capacity development. We have 2006 annual report

19 the ability to innovate by piloting and testing new BOX 2.1 technologies and approaches free of loan conditions “Capacity” defined and without prohibitive costs to the Bank or its clients, to scale up and disseminate effective solutions, to carry out research on approaches to capacity development that “Capacity is the proven ability of key actors are not addressed elsewhere in the Bank, and to raise in a society to achieve socio-economic goals awareness of capacity development needs and approaches on their own. This is demonstrated through the within and outside the Bank. functional presence of a combination of most Over the years WBI has also gained name recognition of the following factors: viable institutions and and convening power, enabling the Institute to sustain respective organizations; commitment and a strong network of in-country partners. As a trusted vision of leadership; financial and material and impartial knowledge broker, the Institute has brought resources; skilled human resources. In short, together varied audiences in government, the private Capacity = Institutions + Leadership + sector, and civil society. Designing and delivering Resources + Skills + Practices – Constraints.” capacity development programs that are not tied to the —World Bank Africa Region conditions of specific loans allows WBI to take advantage quickly of windows of opportunity to help promote change, to engage with countries that are temporarily “Capacity development entails sustainable disqualified from participating in other Bank programs, creation, utilization and retention of that and to sequence its training and other learning programs over an optimal period so that they support the client’s capacity to reduce poverty, enhance development agenda. self-reliance, and improve people’s lives. It requires acquisition of individual skills, The World Bank helps develop capacity through its institutional capacities, and social capital as lending and nonlending operations. Within the Bank, well as the development of opportunities to WBI plays a special role because of its long history put these skills and networks to productive use in designing and delivering learning and knowledge- in the transformation of society.” sharing activities for Bank clients in policy analysis —United Nations and development management. Development Programme In mid-2005, WBI created a small Capacity Development Unit (WBICD) to promote systematic and effective approaches to “Support for capacity development must capacity development. In its first year of operation, the unit focused on identifying the factors that make up the capacity recognize that capacity cannot be imported for successful development and drawing lessons from what from outside; capacity development is an has worked in different contexts to promote that capacity. It endogenous process in which outsiders can act also studied better ways to integrate capacity development as catalyst, facilitator, or knowledge broker.” strategies into the World Bank’s operational and sector work —World Bank Institute and to measure their impact.

The unit is refining a three-factor framework for identifying levers of change: ● The political and social forces that make government and service providers accountable for delivering broadly

world bank institute beneficial policies and services

20 ● The formal and informal rules, laws, regulations, Effectiveness concerning country ownership, donor and norms that constitute the institutional and alignment and harmonization, managing for results, and policy framework mutual accountability are to be realized. In particular, the ● The systemic arrangements (human and material report notes that donors will have to better align their resources) that are brought together in organizations analytical and financial support with country capacity to achieve specific objectives. objectives and strategies, and make more effective use of existing capacity. WBICD has begun to test this framework in selected projects and sectors in several countries. A particular To convey the main messages of this important report to focus of this work is to develop monitorable indicators at field staff in donor offices and obtain feedback from key the subnational level, where weak accountability structures stakeholders in partner countries, WBICD and DAC staff and ineffective local organizational capabilities often organized a series of events. In addition to a presentation constrain the achievement of development objectives. by the DAC secretariat to senior managers and staff from the World Bank in February, WBICD organized two WBICD shared the lead in the effort to establish an consultations with donors and civil society groups in 10 ambitious new multilateral capacity development program African countries in March 2006, with technical support from in public expenditure management and public financial GDLN. The consultations engaged capacity development management in the IDA-eligible countries of the Bank’s experts in a constructive discussion about the key messages Europe and Central Asia region. The Public Expenditure of the DAC report, as well as the report of the Bank’s Africa Management Benchmarking and Peer Learning program Task Force on Capacity Development, and enabled them to will use formal benchmarking and evaluation techniques, exchange ideas on specific implementation issues. as well as informal sharing of personal experiences with reform, to foster a productive new community of practice WBI’s Leadership Program expanded considerably in FY06. among individuals responsible for implementing essential Piloted by WBI’s Regional Capacity Enhancement Team reforms. The program design emphasizes complementarity and now managed by WBICD, the program brings to bear with other Bank and donor engagements. It also reflects global knowledge and analytical resources, the experience the growing consensus that peer learning is often the best of peer leaders, and established practice in organizational way to share knowledge and solve problems. and institutional change to achieve visible results on pressing policy problems. During the pilot phase, With help from the Bank’s Africa Task Force on Capacity interventions were carried out in the Central African Development, the OECD’s Development Assistance Republic, Madagascar, Morocco, Tajikistan, and Turkey. Committee (DAC) published a major report on “The Through the pilot efforts, a conceptual framework was Challenge of Capacity Development: Working Toward developed to facilitate replication elsewhere. An important Good Practice” in February 2006. The paper outlines part of the initial work has been the development of an ambitious agenda—and some important changes mechanisms for evaluating such activities. The pilots in behavior—for the entire development community if also revealed the potential for mobilizing and bringing the commitments of the 2005 Paris Declaration on Aid together partners in client countries—particularly in 2006 annual report

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22 postconflict countries, such as Liberia (page 30), where the reduce PIUs by two-thirds by 2010. But at the organizational Bank traditionally has limited infrastructures and resources, level, incentives still favor their use as a way of bringing but where the UN system is well established and shares projects in on time, within the budget, and without the goals of strengthening governance structures to corruption. The WBICD Washington event featured facilitate transitions. three case studies illustrating how enterprising task team leaders at the Bank have been able to put WBICD’s Voice and Media Technical Assistance Program implementation directly in the hands of beneficiary is supporting community radio and capacity development governments, even under difficult circumstances. under Bank-financed projects in Ghana, Indonesia, Kenya, The discussion highlighted the need to share knowledge Peru, Sri Lanka, and Timor Leste. The projects finance a about good practice, as there is no single approach to major share of the investment costs of the stations, with designing projects without PIUs. cost-sharing from the communities. They also conduct broadcasting sector analyses and make recommendations for legal and regulatory reforms and for capacity develop- ment in programming, reporting, and management.

An important goal of WBICD’s support is to amplify citizens’ voices and foster engaged and informed societies that will demand good governance. Community radio development has proved to be a sustainable and interactive medium in which poor and illiterate populations can articulate issues important to them, mobilize information, learn to engage in informed discussion and debate, and become more decisive agents in their own development. Experience shows that community radio has improved the internal dialogue, problem-solving, and self-organization of the people it serves and given them the self-confidence to talk directly to local officials to get action. Community radio stations that follow good practices are owned and operated by the communities they serve; they are nonpartisan, nonprofit, and generally nonsectarian; and they pursue a participatory development agenda. Their programming includes question-and-answer programs, panel discussions, community reporting, broadcasts of local government meetings, and development-oriented programs, all in local languages.

WBICD has also hosted events to promote discussion among Bank staff and external partners on critical issues in capacity development. One of the most contentious of those issues centers on project implementation units—separate entities established in a country for the sole purpose of carrying out development projects. Most experts agree that projects should be managed by beneficiary countries. For example, the 100 signatories of the Paris Declaration on Aid Effectiveness pledged to 2006 annual report

23 Capacity Day 2006 RETHINKING ORGANIZATIONS THE POWER OF PEER LEARNING AND CLIENT DEMAND

THE POWER OF PEER-TO-PEER LEARNING WAS THE STRONGEST THEME to emerge from the second annual Capacity Matters symposium on June 28. A “capacity crowd” in the Preston Auditorium at World Bank headquarters in Washington was treated to a dozen examples of how peer relationships build capacity efficiently through coaching, training, communities of practice, networks, peer reviews, benchmarking, and self-regulating schemes for professional education and certification. Secondary themes of the event included lessons from the private sector and measurement of capacity improvements.

Peer to peer: powerful pedagogy Mark Nelson of WBI. Videos of the presentations can be viewed at http://info.worldbank.org/etools/ “We saw a pretty impressive array of peer-to-peer capacityday2006/index.htm. methods that stimulate both the supply of and the demand for better services at all levels of government, The wide range of linkages explored during the day especially local,” concluded WBI vice president Frannie included many South–South ties, some brokered by Léautier at the end of the day. WBI or other units of the Bank, and others formed by professional associations or private firms. Capacity Day 2006 featured a stellar cast. Joining President Paul Wolfowitz were two managing directors The first session, onCities as Organizations: Innovative of the Bank (Juan José Daboub and Graeme Wheeler), Examples of Peer-to-Peer Learning, probed new three vice presidents (Gobind Nankani, AFR; Jim Adams, capacity enhancing approaches based on peer-to-peer OPCS; and Frannie Léautier, WBI), the Bank’s treasurer learning. The session featured perspectives on three such (Kenneth G. Lay), and the director-general of the Bank’s projects being developed in Africa with limited support Independent Evaluation Group (Vinod Thomas), as well from the North: as several dozen development practitioners in Brazil, ● The Kampala-Freetown Peer-to-Peer Learning Mozambique, Uganda, and Zimbabwe (appearing by Program, in which former officials from the City of videoconference) who are doing some of the most Kampala are transferring practical knowledge to local exciting work in capacity development today. government in Sierra Leone ● A partnership of Mozambican and Brazilian institutions, Together with an engaged crowd, the cast presented in which outstanding practitioners are identified and four interactive sessions, plus topical breakouts at transformed, using incentives, into superb trainers lunch, videotaped interviews, and an address by Paul ● The Africa Local Government Forum (ALGAF, http:// Wolfowitz—all aimed in one way or another at exploring www.mdpafrica.org.zw/), which has enabled 5,000 how public and private organizations have been able mayors, academics, government officials, and civil to make the most of limited financial and human society organizations in seven member countries resources to accomplish their goals. Moderating the to exchange practical knowledge on local

world bank institute sessions were former CNN anchor Hilary Bowker and governance with their peers.

24 Among the participants in WBI’s Capacity Day 2006 (left to right), World Bank managing director Juan José Daboub, President Paul Wolfowitz, WBI vice president Frannie A. Léautier, Bank managing director Graeme Wheeler, and Ji-Hong Kim of the Korea Development Institute. Improving results

Capacity development interventions using traditional McKinsey & Co, a management-consulting firm that works approaches have had spotty results. Despite donors’ with Fortune 500 corporations, related his firm’s experience annual expenditure of some $14 billion on technical in Banda Aceh province, Indonesia, following the tsunami assistance (most used to finance foreign consultants), only of December 26, 2004. about half of the resulting efforts are successful in trans- forming institutions into capable service providers, policy Adapting good practice from the private sector, the Banda makers, or watchdogs of government effectiveness. Why? Aceh government overhauled its tender and procurement processes, enabling it to disburse $5 billion in aid in a fair According to Vinod Thomas, head of the World Bank’s and timely manner. Ji-Hong Kim described how the Korea Independent Evaluation Group, the answer lies “in the Development Institute provided incentives to attract missing links among individual, organizational, and institutional approaches to capacity development.” If the three parts fail to mesh, says Thomas, improvements VOICES FROM CAPACITY MATTERS, SESSION 1, CITIES AS ORGANIZATIONS—INNOVATIVE EXAMPLES OF PEER-TO-PEER LEARNING in one area may be less effective or wasted—for example, if trained people become frustrated by a lack of incentives “The Africa Local Government Action Forum, or opportunities to use their training. Thomas reports rooted in the local government reforms that that only one-third of the Bank’s investments in capacity have been taking place over the last 20 years, development combine all three parts of the puzzle. has turned into a platform for participants Organizational efficacy is the critical “middle pillar,” he says. from the private sector, the civil service, and the public sector to share experiences The in-service practitioner-to-practitioner models of on how to address the many challenges that learning presented in Capacity Day 2006 are exciting are facing local governments in Africa, precisely because they have worked so well at improving the fastest urbanizing continent.” local government performance, observed WBI vice president Frannie Léautier. “Capable local government is — George Matovu, ALGAF the linchpin of development,” she noted, “both because “We did not come with a predesigned package. local governments deliver essential public services and We came to share. We came to learn about because they relay citizens’ demands for accountability our partners (in Maputo) and how they up the governance ladder.” do things. We respected paces and timings. Nobody holds the whole truth. Everybody But here, as elsewhere, Léautier warns, “leadership and knows a little bit.” ownership are key.” When clients are ready to change, — Anna Jurema, a member which often coincides with the emergence of new leaders, of the Brazilian team working then donors should let the client take the lead, while with peers in Maputo creating space for dialogue and acting as facilitators and providers of necessary resources. “Admittedly, this is a big “Sometimes, a consultant comes in and change from the norm at the Bank, where we’re used to basically overpowers with knowledge. advising and directing.” For better or for worse, perhaps for worse, we [consultants] affect dialogue. The second session, Organizational Learning: Looking And when dialogue is internal, it is much Outside the Box, explored how public sector organiza- more true to the spirit of what needs tions could become more efficient by drawing on lessons to be said and heard.” from international best practices and private sector — Victor Vergara, WBI experience. William Wolf, an associate principal with 2006 annual report

25 The panel for the session on Organizational Learning: Looking Outside the Box (left to right), Timothy Balding, CEO of the World Association of Newspapers; Ji-Hong Kim of the Korea Development Institute; moderator Hilary Bowker, former Senior European Anchor for CNN; William Wolf of McKinsey & Co., Jim Adams, vice president for Operations Policy and And the other thing? “Set audacious targets.” Country Services, World Bank; and WBI’s Mark Nelson. (Insets: Adebayo Adeola, chair of the Group of African Member Associations of the International Federation of Consulting Engineers; The third session, Achieving Results: How Do We Know a question from the audience; and a taped interview with Gobind Nankani, vice president We’re Making Progress?, provided a bird’s eye view of of the World Bank’s Africa Region.) how organizational performance has been understood and measured in two countries, the United Kingdom and Brazil, where striking improvements have been made in foreign-trained talent back to Korea and served as a governmental organizations’ performance. communications bridge between the Korean government “and the real world.” KDI is now repaying the assistance Maria Helena Guimarães de Castro, state secretary of it received from the World Bank and other aid donors by science and technology for the government of São Paulo, working with economic planners in Indonesia, the Lao described her state’s integrated government services People’s Democratic Republic, and Vietnam. program, which supplies more than 400 administrative and health services previously provided by 68 state The World Association of Newspapers (WAN) is helping agencies. “Before Poupatempo,” she said, “we had a lot newspapers in the developing world that are struggling to of problems with civil servants. They were unmotivated gain a solid business footing, without which efforts to train and not prepared to deliver good services.” journalists and promote press freedoms may be moot. “Sometimes, I get the feeling that because everyone The big challenge was training and professional watches television and reads newspapers, they think they development. “Today, we have 5,000 civil servants working know something about creating the environment that is in Poupatempo and e-government; they are motivated and actually going to build an effective, prosperous newspaper well prepared.” It used to take a month to get a driver’s industry,” said WAN chief Timoth Balding. “It’s not the license, said Guimarães de Castro, but now it takes just 15 case. You need business experts.” Balding averred that minutes. And independent surveys measure a 95 percent “thousands of business experts in newspapers all around citizen satisfaction rate. “In terms of efficiency, quality, and the world” would be ready to give up their time to speed,” she concluded, “we have created a new model for promote viable newspaper businesses, if opportunities public service. But, of course, this is expensive.” could be created to harness their talents. After the efficiences of peer-to-peer learning (in all its What works in improving organizational effectiveness? permutations) and the catalytic effects of local leadership “Focus on the customer,” said management consultant and ownership, the most emphatic views of the day James Stockmal, a senior manager at BearingPoint. were expressed on the technical subject of performance “It gives you a perspective of driving organizational measurement. “What are the darker sides of performance performance from the outside in. Then involve the people measurement,” asked a member of the audience, “or is who are going to be held accountable for the goals and it the first management technique in history that has objectives that you’ve set at an organizational level. Learn absolutely no down sides?” from your mistakes. Finally, have some staying power.” The down side was clear to Tony Bovaird, professor Stockmal’s views were echoed by McKinsey’s William Wolf. at Birmingham University in Britain and a participant in “There are two things you can do to promote organiza- that country’s comprehensive effort to improve local tional effectiveness,” he said. “One is clarity of direction. government services through performance management. Are people lifted up by the idea of what things will The danger is self-referential, or “inward looking,” be like in five years’ time? Do the people at the bottom assessment. “No organization is alone any longer,” of the organization actually know how they fit into that warned Bovaird, “and the performance of every

world bank institute overarching set of objectives?” organization can be assessed only by looking at the

26 performance of its partners, its partnerships, its noted, “the more they tend to get fixed.” “Knowledge networks, and the service system it contributes to.” is one of the most precious commodities on this earth,” So inward-looking performance measurement in observed World Bank managing director Graeme organizations “is fundamentally dangerous to the health Wheeler. And, with 3,000 PhDs on its payroll, of the people who depend on those organizations.” “the Bank is a huge reservoir of knowledge.” The challenge is how to share that knowledge effectively. Incoming World Bank managing director Juan José “The Bank has a role to play in facilitating South-South Daboub shared some simple principles of effective transfers of knowledge and experience,” believes Jim organizational management gleaned from his experience Adams, vice president for Operations Policy and Country transforming the electrical utility of El Salvador in the Services. “On the matter of South-South cooperation, the 1990s, a period during which the World Bank and Bank has an enormous competitive advantage—and just El Salvador worked together to bring the country from hasn’t done enough.” poverty to investment grade. “Understand what your customer wants, and create space for them to exercise Is the project model, with its fixed time frame and strictly freedom” urged Daboub. “Then our obligation is to controlled project implementation arrangements, the share best practices and experiences.” best way to deliver knowledge? That question was raised by Bank treasurer Kenneth G. Lay, whose peer-to-peer The day’s last session, Rethinking Instruments: Reserves Advisory and Management Program has given Benchmarking, Peer Reviews, and Certification, the Bank a third identity: that of a mentoring organization, explored methods for improving organizational performance as well as a lending organization and a knowledge and building local capacity through benchmarking, peer organization. RAMP links reserve managers in reviews, and professional certification programs. developing-country central banks with peer mentors in the World Bank’s Treasury. The International Federation of Consulting Engineers (FIDIC) strives to promote local associations of engineers in “In our discipline [management of financial reserves], developing countries, emphasizing business development best practice is well understood,” Lay reminded the and effective advocacy before national governments. audience. “We can clearly identify departures from best “We’ve learned a lot of lessons,” claimed Adebayo Adeola, practice and formulate an engagement plan to address who chairs FIDIC’s Group of African Member Associations. them.” But the key to successful capacity development “The first is that it costs money to build capacity. The is not sheer quantities of knowledge or monitorable second is that it takes a lot of time, and you cannot take indicators of success. The key is ownership. “There have your eyes off it. The third is that capacity training without been instances in which we have turned down engagements capacity utilization, without continuous hands-on engage- where we have not felt that there is adequate ownership,” ment, is almost meaningless.” Adeola proposed a new said Lay. “And I think that sends a stronger signal than model whereby national firms should be awarded a much anything you can say.” greater share of contracting work in their countries, provided they enlist an international firm to supervise and share expertise. Aid money would mainly pay for the international firm’s support. “That is the price of capacity building,” said Adeola.

Implications for the World Bank

What do the findings of Capacity Day 2006 mean for the Bank? How can the Bank best contribute to the growth of organizational capacity, particularly at the local level?

The power of peer-to-peer relationships to induce change for the better is heightened by the availability of objective and comparative performance assessment data—such as WBI’s governance indicators, the annual Doing Business reports published by the World Bank and International Finance Corporation (“a guide not for private investors but for the governments that it ranks,” according to Paul Wolfowitz), and the citizens’ scorecards and budget billboards used in India, Uganda, and other World Bank president Paul Wolfowitz addresses countries to deliver feedback to providers of public the audience at the close of Capacity Day 2006. services. “The more you publicize things,” Wolfowitz 2006 annual report

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28 WORKING IN TANDEM WITH THE BANK’S REGIONS deepening our country focus

ESSENTIAL TO OUR WORK IN FOCUS COUNTRIES IS COOPERATION with the World Bank’s regional operations, which increasingly share the costs of designing and delivering WBI programs. The quality of programs and activities has been improved through joint planning with the regions and greater use of capacity needs assessments, drawing heavily on lessons learned from WBI activities and relevant lending, analytical, and advisory activities in each region. Our multiyear approach to capacity building is based on milestones and performance indicators that we identify in cooperation with local partners and track during implementation.

We further decentralized our focus-country work over the course of the year by recruiting six new staff members in Africa. We also reached an agreement with the Africa Region to locate the coordinator for the Southern Africa Country Collaborating Cluster in the Pretoria office, along with two capacity building specialists in local government and other service-delivery organizations. The regional coordinator for South Asia is located in New Delhi, supported by a small core team; the regional coordinator for Europe and Central Asia will be based in Turkey; and a China program coordinator will be added to the Beijing office. That individual will gradually take over as regional coordinator for the entire East Asia and Pacific region.

TABLE 3.1 WBIʼS SHARPER COUNTRY FOCUS

FY05 FYO6 REGION COUNTRIES ACTIVITIES COUNTRIES ACTIVITIES

Sub-Saharan Africa 9 73 9 86 ● Activities in focus countries now East Asia and Pacific 6 73 6 80 make up nearly 50 percent of all Europe and Central Asia 4 51 8 49 learning activities, Latin America and the Caribbean 4 50 4 79 compared with 33 percent in FY05. Middle East and North Africa 4 16 4 36 ● Africa accounts for South Asia 5 44 5 63 the largest number of focus-country TOTAL 32 307 36 393 activities. 2006 annual report

29 SUB-SAHARAN AFRICA

For the developing world as a whole, economic growth mutual respect and trust. When the three-day seminar averaged 2.5 percent between 1960 and 2000; in Africa ended, the leaders of both branches voiced their commitment per capita growth averaged only 0.5 percent. In the last to collaborate and work together to pass the national 20 years, poverty in Africa has doubled, as measured in budget for the common good of Liberia, acknowledging the number of people living on $1 a day or less. Unless that the workshop had turned the tide. things change, this continent of more than 700 million people will achieve few if any of the Millennium Good governance through radio. From July 2005 to Development Goals. January 2006, WBI used digital radio technology to deliver a program on Governing Municipalities without Corruption WBI will increase its work in Africa, where it delivered 27 in Ghana, Kenya, Tanzania, and Uganda. Radio can be an percent of its activities in FY06. The report of the Bank’s efficient tool for controlling corruption at the municipal Africa Capacity Building Task Force called on WBI to support level by circulating information, enhancing transparency operational priorities and to complement the short-term time and accountability, and reinforcing people’s exercise of frame of Bank projects by taking a longer view. WBI’s status voice. More than 1,000 participants (local public officials, as a nonlending learning institute gives it the flexibility to mayors, civil society representatives) participated in this work over a long-term horizon and to collaborate with offering and developed action plans for incorporation into governments as well as nongovernmental actors. future operations. Participants have since formed communities of practice for the improvement of governance in their Citing WBI’s comparative advantage, the Bank’s Africa respective municipalities. Digital radio technology brought Action Plan recommended that the Institute concentrate the program to remote and rural areas. The challenge for its support in selected countries and in the following areas: the future is to find ways to collect participant data from capacity building needs assessment for better results, remote rural learning centers. anticorruption, public expenditure and financial accountability, parliament strengthening, media Mainstreaming the CENA method in Africa. The Capacity strengthening, judiciary reform, trade, and monitoring Enhancement Needs Assessment (CENA) is a participatory and evaluation of poverty reduction strategies. method for assessing the capacity building needs of development actors. After piloting the approach in seven During implementation of the Action Plan, WBI will work countries from 2002 to 2005, WBI and the African Capacity closely with the individual country teams. During FY06 Building Foundation are now partnering to spread the this work started in seven of WBI’s African focus countries: method in Africa through a series of workshops to train Burkina Faso, Ethiopia, Ghana, Madagascar, Nigeria, trainers. The effort contributes to achieving one of the Senegal, and Tanzania. objectives of the Bank’s Africa Action Plan—that of showing African countries how to identify and redress weaknesses in The following examples illustrate WBI’s expanding implementation capacity. In francophone countries, WBI program in Sub-Saharan Africa. and the Africa Capacity Building Foundation use CAPES, the national focal point for capacity development in Burkina Leadership development in Liberia. At the request of the Faso, as their training partner. WBI’s local partners in Burkina new government of Liberia, WBI delivered a leadership Faso used the CENA method with excellent results to carry workshop for the legislative and executive branches on out a comprehensive needs assessment with the participa- the national budget process. Before the June 2006 tion of 120 key actors involved in two of the country’s seminar, which benefited from the presence of experts agriculture supply chains: rice and vegetables. The purpose from Benin, Ghana, Nigeria, and South Africa, the leaders of the assessment was to produce a capacity development of opposing parties were not on speaking terms, and the agenda for the two supply chains in preparation for an legislature was preparing for a showdown with the upcoming operation financed by the Bank’s International

world bank institute executive on the budget. The main issue was a lack of Development Association.

30 Access to Justice in Ghana Gender mainstreaming in African universities. Vice chancellors and senior representatives of 11 public and private universities in Ghana have committed WBI’s Judicial Reform Program in Ghana, which aims to strengthen the adjudication themselves to develop and adopt a gender mainstreaming capacity of traditional leadership so that access policy for each university and a common curriculum on to justice can be broadened, started out as a gender and development. The curriculum (in preparation) needs-assessment workshop and now stands on the verge of in-depth institutional reform. will consist of a foundation course on gender and An action plan prepared by workshop development to be taken by all students, a trainers’ participants led to a retreat of key national manual, and a training-of-trainers course. Thematic courses stakeholders in Kumasi, Ghana. The Kumasi meeting garnered favorable comment from will be tailored to the fields taught at the various universities. Ghana’s vice president and parliament, both The universities also have agreed to establish a gender for its aims (wider access to justice) and its center in the executive office of each university to monitor methods (stakeholder consultations). and evaluate gender-related developments, organize initiatives related to gender, and disseminate information on gender. Finally, they have agreed to establish a reliable Ministerial-level sessions on public-private partnerships sex-disaggregated database to be updated continuously in Madagascar and Burkina Faso. WBI organized policy to inform management decision making on gender issues. dialogues with government ministers in Madagascar and Burkina Faso to raise awareness about the development potential of public-private partnerships in infrastructure and to explain the differences between such partnerships and privatization. The impact of both events was very high, as attested by requests for follow-up activities in both countries. The Madagascar event, attended by six ministers, was well timed, as the government there is preparing to award concessions for its power utility and airports.

Strengthening Tanzania’s capacity to fight HIV/AIDS. WBI brought together 320 Tanzanian officials and practitioners in 16 activities to strengthen the country’s capacity to combat HIV/AIDS. Distance learning provided a cost-effective way to share experience among coun- tries. Among the themes addressed were the role of indigenous and local knowledge in managing HIV/AIDS cases, the use of flexibility under the Agreement on Trade-Related Intellectual Property Rights to improve access to antiretroviral drugs, strategies to fight stigma and discrimination at the workplace, and mainstreaming the gender and legal dimensions of HIV/AIDS.

Youth for good governance in Zambia. Through 20 WBI courses delivered during FY04–FY06, some 23,000 young people in 104 Zambian schools have come to understand the root causes of corruption and learned the advocacy skills needed to reverse the trend toward corruption in their communities. 2006 annual report

31 EAST ASIA AND PACIFIC

WBI’s FY06 capacity building agenda in East Asia and Support for decentralization in Indonesia and the the Pacific (EAP) comprised more than 150 learning Philippines. In Indonesia, decentralization is the policy events and technical assistance programs that reached cornerstone for building post-crisis stability and growth. an estimated 15,000 people and a much wider secondary Government and donors there and in the Philippines audience. Six focus countries (China, Indonesia, Lao have launched initiatives to support capacity building People’s Democratic Republic, Philippines, Thailand, among central and local governments to support and Vietnam) accounted for some two-thirds of all decentralization and improve the delivery of local activities. A regional program allowed participants services. WBI and EAP staff worked with Indonesian from nonfocus countries to take part in activities institutions to build learning systems and methods designed for two or more countries or in extensions of wholesaling to broader audiences. WBI’s support of the focus-country activities. for decentralization and local government in the Philippines furthers the Bank’s objective of mobilizing As a result of the consultations with EAP staff and closer the country’s rich human resource base to improve integration with the region’s assistance program, WBI development outcomes. provided fewer, but deeper and longer, activities. The focus-country program designed in close consultation Strengthening the civil service in the Lao PDR. between WBI and regional staff comprised 33 activity WBI’s program of support for the Lao PDR’s civil service clusters with, on average, three activities in each cluster. training institute (NOSPA) and its efforts to reinforce Most of the FY06 programs were continuations of the capacity needed to implement the PRSP are a good FY05 programs. example of engagement with a poor country coping with several basic development issues. Learning events during The sectoral and thematic composition of the program FY06 included workshops and seminars about economic was similar to that of the previous year. Activities linked analysis and evaluation and PRSP costing and prioritization to governance and public sector management remained strategies. WBI brokered a collaboration program between the dominant feature, comprising about half of all events. the Korea Development Institute and NOSPA that is About 20 percent of the program was linked to private already bearing fruit. sector development, including investment climate, trade, and financial sector issues. Another 20 percent focused Peer-to-peer leadership learning in China. Reflecting on environmental aspects, particularly in China, where increased interest in peer-to-peer learning, WBI years of high economic growth are putting pressure on supported an event in China in which ministerial-level the environment. The remaining 10 percent dealt with participants from around the world shared their thoughts health, education, and social protection. about how various aspects of public administrative reform should be carried out at the central, sector, and local Distance learning centers in China. During FY06, 6,000 levels. Some 130 Chinese participants, mainly department participants benefited from 26 major distance learning heads and deputies from a broad array of government events, including sessions on public sector reform agencies, participated in the two-day event, which featured delivered at 55 sites. Some 2,000 participants logged examples from Bangladesh, the Russian Federation, and onto the Tsinghua University network to participate in Sweden, among others. A similar peer-to-peer event was events on topics such as trade, urban planning, organized in Vietnam. investment climate, health, and the environment. The technology enabled exchanges with participants Customized response to country demands. Considered by in Japan, Republic of Korea, Thailand, and elsewhere country, demand for capacity building in China focused on in the world, while also permitting groups in remote environmental issues, as noted, and on modernization of areas of China to take part. Fourteen distance learning public sector management to help the public sector keep centers throughout China were added to WBI’s up with the demands of the rapidly growing economy. In

world bank institute program during the year. Indonesia and the Philippines demand remained high for

32 EUROPE AND CENTRAL ASIA

capacity building related to ongoing decentralization WBI’s focus countries in Europe and Central Asia include efforts, with the problem of ensuring adequate strength sophisticated middle-income countries, low-income countries at local levels proving hard to solve. Vietnam and the under stress, aid-dependent countries, countries emerging Lao PDR remained interested in traditional learning from conflict, and EU accession countries. To the four events in areas of public administration and environmental countries/areas supported in FY06 (Bosnia and Herzegovina; management. The Thailand program retained its focus on Russian Federation; Turkey; and the countries of Central Asia, private-public partnerships (PPP) in infrastructure projects, supported as a subregion), Romania and Ukraine will be on support to parliament, and on decentralization. Here added in FY07. The four Central Asian countries (Kazakhstan, the PPP work took on special importance, as the country Kyrgyz Republic, Tajikistan, and Uzbekistan) will now be announced a major infrastructure investment package. targeted individually with capacity building programs designed to address their specific development needs.

To meet the demands of such a diverse constituency, WBI offers varied programs that include knowledge exchanges, skills building, communities of practice, individualized training using face-to-face and Web-based interfaces, institutional development with twinning arrangements, and high-level leadership seminars. By closely aligning its programs with the operational lending and analytical work of each country, WBI developed well-targeted, customized, multiyear programs in close collaboration with partners—particularly local partners, who add local context and content. In FY06, WBI delivered more than 50 regional and focus country programs, reaching more than 4,000 people in the region.

Among the key areas of focus are: (a) development of leaders and attention to leadership skills in critical areas; (b) helping countries achieve dynamic effects through participation in trade; (c) tackling major sectoral bottlenecks such as in health and social protection; (d) strengthening key areas that affect good governance, and (e) helping develop capacity to handle risk and crisis. These are illustrated below:

Leadership seminars in Tajikistan and Turkey. Tajikistan’s cabinet of ministers studied public expenditure management and public administration reform in a seminar designed by WBI and the Bank’s Tajikistan country team. Joining the country’s cabinet at this four-day retreat were former and current ministers and deputy ministers of finance and economy, as well as other experts from Albania, Armenia, Austria, Poland, the Russian Federation, Serbia, and Slovakia. Future seminars in this series will drill down further into sub-themes that

are critical for public administrative reform. 2006 annual report

33 EUROPE AND CENTRAL ASIA

The World Bank has been asked to support Turkey with policy advice, knowledge transfer, and technical assistance as that country prepares to join the European Union. The Bank’s country economic memorandum (CEM) entitled “Turkey—Promoting Sustained Growth and Convergence with the European Union” provides key findings, analysis, and policy options for convergence with the EU. WBI complements the CEM with a leadership capacity program designed to distill the key lessons of the CEM and transfer knowledge to Turkey from EU member countries on how to design and implement reforms required to comply with European law. So far two leadership seminars have been conducted, and citizen and community involvement in municipal focusing on the administrative challenges during government decision making. The exercise is intended accession. WBI has been asked to extend the series to to lead to the development of a two-year program on include potential sector-specific challenges that municipal reform to be delivered by WBI in partnership Turkey may confront during the negotiations. with the Austrian government.

Central Asia regional course on trade policy and WTO Kazakhstan e-procurement program. Procurement experts accession. Delivered in Tashkent, Uzbekistan, in from the World Bank, the Korean government, and the partnership with the Training Institute of the World Trade Korea Development Institute shared with Kazakh officials Organization, the course gave Central Asian officials from best practices in transparency, anticorruption, and trade and commerce ministries, and academics working on openness in state e-procurement. trade policy in the region, an integrated view of the economics of trade policy reforms and an introduction to Public expenditure management. WBI strengthened its the trading rules of the WTO. The course was customized collaboration with operations in designing and delivering to the situation faced by the Central Asian economies, a regional Public Expenditure Management/Peer Assisted with a strong focus on the WTO accession process. Learning program (PEM-PAL) launched at a conference in Warsaw, Poland. The objective is to facilitate learning Health sector reform and sustainable financing in Turkey. among government officials to stimulate and strengthen In partnership with the Turkish School of Public Health, effective public sector reform. The PEM-PAL program WBI launched a three-year program to support reform of complements the Bank’s analytical work and projects in the Turkish health sector. Fully aligned with the World public sector management. The program will feature a Bank’s Health in Transition project, the program activities series of ongoing capacity development efforts and has are delivered in partnership with the World Health already led to the formation of a community of practice Organization, Harvard School of Public Health, the European featuring the heads of treasuries in the region. Hospital and Healthcare Federation, and Semmelweis University. Topics include analyzing health-system Regional development in Russia: Through its Poverty performance, decentralization, and hospital restructuring. Analysis program in the Southern Okrug and the Participating in the events were officials from the national Regional Innovation and Competitiveness Pilot in ministries of health, finance, and labor; provincial health northwestern Russia, WBI contributed to the preparation directors; hospital officials; and university faculty. of a Bank project to develop IT businesses and technoparks. WBI’s programs for government officials and policy Community-driven development in Bosnia and makers have helped advance the development of Herzegovina. WBI inventoried capacity development special economic zones, national innovation systems,

world bank institute initiatives in Bosnia related to local government reform and investment decision making.

34 LATIN AMERICA AND THE CARIBBEAN

WBI’s very active program in Latin America delivered more WBI programs in Latin America—an FY06 album than 80 learning and technical assistance activities in FY06, reaching more than 15,000 participants from government, Guatemala municipal radio program. WBI is partnering with the private sector, academia, and civil society. Aligned with Guatemala’s Ministry of Planning (SEGEPLAN) and the Guatemala country and World Bank priorities, these programs are Institute for Radio Education (IGER) in a community radio program often delivered in partnership with teams from the Latin to train mayors and other local officials. Topics covered include community-based planning, municipal budgeting, and planning America and Caribbean Region of the Bank. WBI’s four and financing of local infrastructure. Although still in its pilot stage, focus countries in the region in FY06 were Bolivia, Brazil, the program has already reached more than 2,000 participants Guatemala, and Mexico. Argentina and the Dominican spread across the country. Delivered to date in Spanish, the radio programs will be translated into local languages. Republic will become focus countries in FY07.

WBI’s work in the region has a strong emphasis on National forum on transparency and open government in Mexico. WBI partnered with the Latin America and Caribbean region governance and anticorruption through programs in and the Mexican Freedom of Information Institute (IFAI) to organize a public administration, judicial reform, e-government, national forum on issues of freedom of information and transparency. public finance, monitoring and evaluation, and The forum brought together legislators and representatives of state- level freedom of information commissions from 25 of Mexico’s 32 budgeting. On the “demand side” of governance, states to share experiences in the development and implementation WBI programs, many aimed at parliamentarians and civil of laws on transparency and access to information. It also provided society organizations, cover topics such as freedom of an opportunity to inject the issue of freedom of information and good governance into the election campaign, as representatives of the information and social accountability. major political parties joined a panel to discuss these issues. The event drew considerable press attention, much of which focused Building capacity at the subnational level in Brazil. Key on the links between good governance and poverty reduction. areas of emphasis in WBI’s largest program in Latin America are building capacity at the municipal and state levels Distance learning course on environmental law in Brazil. and training and capacity development in environmental In partnership with the GDLN center in the World Bank’s Office in Brazil, the Ministry of the Environment, Banco da Amazonia, and the management, with emphasis on the Amazon region. Bank’s Rainforest Unit, WBI is delivering a 180-hour distance The Brazil program’s stress on municipal-level capacity cuts learning course on environmental law to sites in all nine states of the across programs and includes training for municipal officials Amazon. The 515 participants are officials of state and municipal environmental agencies. The course is one of several WBI activities in on public administration and management, as well as Brazil focused on building capacity for enforcement of environmental environmental and social issues. WBI’s programs on policies and regulations. environmental management are closely integrated with Bank lending projects, particularly the Natural Resources Policy Project, for which WBI has developed an associated three-year capacity development effort.

In keeping with the new strategy of the Brazil experience, both through training and by connecting country team, activities for the next fiscal year are being Mexican policy makers with practitioners from other consolidated in clusters related to urban and municipal countries. WBI’s capacity development objectives in development, environment and local development in Mexico include strengthening the institutional capacity rural areas, public sector performance, and human capital of subnational (particularly municipal) governments; and jobs. Several activities will address corporate social improving transparency, voice, and accountability; and responsibility and sustainable competitiveness, as well fostering greater public-private cooperation in meeting as investment climate and infrastructure. development objectives.

Building capacity through learning and knowledge Activities address areas such as public administration and exchange in Mexico. WBI has played an important role finance for municipalities; management of municipal water in facilitating Mexico’s access to global knowledge and utilities; corporate social responsibility and sustainable 2006 annual report

35 LATIN AMERICA AND THE CARIBBEAN

competitiveness; and transparency and freedom of Supporting change in Bolivia through knowledge information. WBI’s program for the coming year will sharing and policy advice. WBI’s program in include activities on capacity building for indigenous Bolivia during the fiscal year provided just-in-time people, and for health, water resource management, advisory support on decentralization policy and practice climate change, and implementation of legislation on (comprising issues of fiscal decentralization, municipal access to information. management, and local delivery of services). The program included a study visit to Brazil, where a Decentralization, governance, and anticorruption in group of Bolivian policy makers participated in a course Guatemala. WBI’s major task in Guatemala has been to on intergovernmental fiscal relations together with state assist the government with the design and implementation and municipal officials from throughout Brazil. WBI of its decentralization strategy through policy advice also organized a study visit to Mexico, for a team from and capacity building. Since 2005, WBI has been the new government’s Ministry of Education, which collaborating with the government’s decentralization learned about Mexico’s innovative “Telesecundaria” coordination unit in organizing a monthly series of program. For the coming year, WBI’s program videoconference dialogues in which Guatemalan policy will continue to respond to the needs of the new makers are linked with experts or practitioners from other Bolivian government with activities in the areas of countries to discuss specific policy or technical issues. decentralization policy and implementation, knowledge This support for the country’s decentralization policy is sharing on constitutional reform, secondary education, complemented by WBI learning programs focused on and local economic development. building capacity of municipal governments for effective planning and service delivery. Topics covered by the Mutual learning and innovation through partnership. program have included community-based planning, An important element of WBI’s program and strategy in municipal budgeting, and planning and financing of Latin America is partnership with local knowledge and local infrastructure. learning institutions. Such partnerships allow WBI to extend the reach of its programs while building local WBI has also been assisting the government of Guatemala capacity. WBI’s strategic partnership with Monterrey with its efforts to improve governance, with emphasis on Tech, in Mexico, is a good example. The collaboration curbing corruption and enhancing transparency. In support with Monterrey Tech dates back to 1998, when WBI of these efforts, WBI has been providing training on began partnering in delivery of a program on municipal various aspects of governance—among them judicial management for newly elected mayors. WBI learned reform, freedom of information, social accountability, and valuable lessons regarding the use of distance learning, participatory planning and budgeting. WBI is also while Monterrey Tech gained experience in training supporting policy dialogues and offering training on key for public officials (as opposed to its traditional reform issues (such as a new framework for private academic audiences). Since then WBI and Monterrey investment in infrastructure; performance-based budgeting; Tech have continued to learn from each other through and decentralized delivery of services) that are part of the collaboration in design and delivery of a range of Bank’s overall adjustment lending program. programs, including activities in public administration, transparency and control of corruption, community In the coming year, WBI’s program will include development, corporate social responsibility, and capacity building activities on decentralization, knowledge for development. The mutual learning municipal administration, monitoring and evaluation, has included experimentation with new technologies, performance-based budgeting, and capacity building for as the mode of delivery of joint programs has evolved legislative operations. In Central America, WBI will offer from direct broadcast TV to two-way videoconferencing, activities on access to information and social accountability, and now to heavy use of Web-based technologies. secondary education reform, land policies, competitiveness,

world bank institute and public-private partnerships in infrastructure.

36 MIDDLE EAST AND NORTH AFRICA

WBI’s program in the Middle East and North Africa region has evolved significantly since the Institute’s transition to country-focused programming. Activities are increasingly integrated with Bank lending, technical assistance, and analytical work programs, particularly in the focus countries of the Arab Republic of Egypt, the Islamic Republic of Iran, Morocco, the Republic of Yemen, and Lebanon. In FY06 WBI delivered more than 70 learning activities in the region, reaching approximately 2,500 participants, including government officials and representatives of the private sector, academia, and civil society.

Programs in the region focus on the investment climate and job creation, water management and regulation for irrigation and sanitation, pension reforms and social safety nets, decentralization and local governance, and capacity building in change management and project implementation. Programs are heavily engaged with nontraditional audiences—particularly elected officials such as mayors and parliamentarians, community leaders at the local level, and schools of public administration.

For greater impact, WBI programs are being implemented on a multiyear basis to ensure that knowledge and capacity are built continuously through systematic follow-ups. WBI is building the capacity of partners in the region to achieve sustainable learning outcomes, especially in the area of governance and anticorruption. Key partners include the Hassan II University and the National School of Administra- tion in Morocco, the Institute of Finance in Lebanon, the Sharif University in Iran, and the Islamic Development Bank in Saudi Arabia. Some highlights of this multiyear engagement are provided below.

Peer-to-peer learning to promote investment in Egypt. In response to a request from the minister of investment in the Arab Republic of Egypt, WBI organized a seminar in which government officials learned from peers about international best practices to enhance the attractiveness of Egypt to foreign investors. WBI worked closely with the Bank’s country team to translate the government’s interest in this activity into a long-term commitment to adminis- trative and regulatory reforms across the economy. WBI expects such collaboration to continue in FY07. 2006 annual report

37 MIDDLE EAST AND NORTH AFRICA

Conference on job creation and skill development in the Middle East and North Africa. The conference brought together 140 representatives from every government in the region to focus policy attention on a most pressing challenge—high and rising youth unemployment. Meeting that challenge will mean raising economic growth rates to create 90 million new jobs (almost double current levels) over the next two decades. The conference explored the linkages between labor-market policies and other reforms.

Peer partnerships for urban capacity building. WBI’s Knowledge Network Agency for the Middle East and North Africa and the Bank’s Middle East and North Africa region are harnessing the expertise of European cities and local governments to build capacity in the governorate of Alexandria, Arab Republic of Egypt. The cities of Marseilles and Lyon have dispatched experts to work with local government teams in Alexandria and to support World Bank sector teams in preparing a city development strategy. The Spanish city of Seville took the lead in organizing, in cooperation with several other European cities, a workshop on local economic development requested by Alexandria’s governor. Cities in Jordan, Morocco, the Syrian Arab Republic, and Tunisia have requested similar peer-to-peer and “groundbreaking,” the roundtable exposed the support as a result of this event. participants to international experience, expertise, and techniques in institutional transformation and change National conference on children and youth in Yemen. management. A facilitator recruited by WBI to assist the Strengthening local partners, reinforcing improved INDH working groups is helping the University of relations with client counterparts, and alignment with Hassan II to implement a rapid results program for key regional operations were three of the principles behind human-development actors in Casablanca. WBI support a four-day national conference in the Republic of Yemen for the INDH will expand significantly over the next years. to arrive at a work program for the national Children and Youth Strategy prepared by several ministries of the Addressing gender issues in Afghanistan and Iraq. Thanks Yemeni government. The World Bank provided technical to a trust fund from BNP Paribas, delegations of Afghani assistance for the conference, with a team that included and Iraqi women were able to speak at the Global Summit members of other Bank units. for Women in Cairo from June 10 to 12. The eight women had the opportunity to interact and network with women Human development in Morocco. Launched in August in business and politics from all over the world, meeting 2005 by the King of Morocco, the Initiative Nationale with the First Lady of the Arab Republic of Egypt, the de Développement Humain (INDH) is a large community- vice president of Vietnam, and some 40 women ministers. driven initiative to reform governance systems and reduce Participation of the Afghan and Iraqi women was important poverty through a major devolution of responsibility and because women are to play a pivotal role in the political resources to local governments. To reinforce the effective- and economic transformation of both countries. With ness of INDH, WBI organized a roundtable for governors funds from the same source, 23 Afghan women took and mayors to share lessons and innovations from ongoing an online course on financial literacy for women with the

world bank institute projects. Described by counterparts as “revolutionary” help of two trained facilitators fluent in the local language.

38 SOUTH ASIA

In August 2005, WBI and the World Bank’s South Asia Region Pradesh and Tamil Nadu, and opened a regional capacity development hub in Delhi. ultimately into the Indian government’s The office covers five countries as priorities: Afghanistan, National Urban Renewal Mission. Bangladesh, India, Pakistan, and Sri Lanka. A core function is to make the knowledge role of the Bank more prominent in Policy analysis in the Bangladesh the region, thus complementing its lending activities. Teams central bank. WBI is strengthening in the five countries selected WBI programs that reinforce the Bangladesh Bank’s analytical capacity existing Bank portfolio. Other principles used in program through long-term technical assistance. selection were multiyear programming that made good use The aim is to create a policy analysis of local partners, outreach through use of distance learning group in the central bank’s research technologies and the Bank’s Global Development Learning department. Under the supervision of Network, and intra- and inter-regional knowledge exchange. the World Bank’s resident economic adviser, the group will provide advice on emerging policy issues to the central bank’s As a result of the selection exercise, 30 WBI core programs senior management in their role as advisers to the government are now active in the five South Asian focus countries. They on economic and fiscal policy issues. In cooperation with the deliver a multitude of training, knowledge, and learning research department, WBI offers seminars in macroeconomics, activities, as well as technical assistance, to governments and monetary economics, international trade, finance, and applied local partners. Three-quarters of the programs are directly econometrics. It also fosters in-country and cross-country linked to Bank projects. The remainder supplement Bank knowledge exchange by bringing in national, regional, and efforts in areas where WBI has unique capabilities. international speakers. The governor of the State Bank of Pakistan has requested a similar program. Previously ad hoc and fragmented, WBI activities in the region are now much more coherent and strategically integrated into Good governance in community development projects the Bank’s larger portfolio in each country. The coordination in Sri Lanka. With the help of local facilitators, village of WBI’s program with that of the Bank’s South Asia Region infrastructure committees are developing action plans to has resulted in “a 180 degree switch from a chaotic and improve service delivery in villages throughout Sri Lanka. frustrating relationship to a disciplined, integrated, and The action-learning exercises are part of a community strategic program in a short time,” says Christine Wallich, development and livelihood improvement project known as the Bank’s country director for Bangladesh. Gemi Diriya. Training-of-trainers courses on social account- ability and the community assessment process empower In the coming year, WBI and the region will scale up their communities to hold service providers accountable and to programs through an expanded network of partners and build partnerships to improve service delivery. The program through the technology offered by GDLN. will scale up through increased cooperation with more local partners and additional training-of-trainer courses. WBI is Better city management in India. WBI’s urban governance using community radio to reach out to wider audiences and and management program supports a certification program reinforce accountability. in city management offered by local institutions in coopera- tion with the national Advisory Committee on Certification in Social protection in Pakistan. WBI supports Pakistan’s City Management and state urban development depart- emerging social protection strategy with work on safety nets ments. Two cohorts of city managers have completed the and old-age income security. A national forum organized in program to date. At the institutional level WBI works with the FY06 shared the results of social protection work carried out Administrative Staff College of India to adapt the national to date and discussed international experience, alternative curriculum to local needs. The program is scaling up as new strategies, and possible reforms. The result of the workshop— institutions join the certification network, as Web-based a set of recommendations from various stakeholders—will learning methods are applied, and as the program is contribute to the development of effective safety net integrated into World Bank lending operations in Andhra programs within the country’s social protection strategy. 2006 annual report

39 world bank institute

40 WBI’S GLOBAL PROGRAMS

COMPLEMENTING ITS WORK WITH FOCUS COUNTRIES, WBI CARRIES OUT GLOBAL ACTIVITIES ON TOPICS ESSENTIAL TO CAPACITY DEVELOPMENT IN ALL COUNTRIES.

The World Bank views good governance and anticorruption as central to its poverty alleviation mission. Hundreds of governance and anticorruption activities taking place One does not fight corruption by throughout the World Bank Group focus on internal merely fighting corruption. Systemic organizational integrity, minimizing corruption in World governance reforms are often needed Bank–funded projects, and assisting countries in improving when revamping the judiciary, customs, governance and controlling corruption. and budget institutions, or in instituting media freedoms and women’s rights. Combining participatory action-oriented learning, For this, political commitment and capacity development tools, operational research, leadership are critical [...]. At the same collective action, and a comprehensive governance time, enhanced efforts to address database, the WBI Governance and Anticorruption bribery by the private sector, including program, in collaboration with many units in the multinational corporations, are also World Bank Group, supports countries in improving urgently required.” governance and controlling corruption. —Daniel Kaufmann, Director, Global Programs, The Knowledge for Development (K4D) program World Bank Institute, Keynote Address to the Third ICAC Anticorruption Symposium, provides policy advice on four pillars of the knowledge May 9-11, 2006, Hong Kong economy: economic and institutional regime, education, innovation, and information and communication technologies (ICTs). K4D’s Knowledge Assessment Methodology benchmarks the position of 128 countries policy advisory services, and collective action at the local in the global knowledge economy. level. Key components in this integrated approach are: ● Data collection and analysis. WBI’s Worldwide Governance Indicators database (www.worldbank.org/ Governance, capacity, governance/data) contains information on 200 countries and data for the years 1996–2005. Our quantitative evaluations of the business climate in more than 100 countries are During the past decades the themes of governance and based on surveys of more than 10,000 firms. We also capacity development have moved to center stage in the conduct in-depth diagnostic surveys of individual World Bank’s efforts to combat poverty through economic countries based on representative samples of public growth. Previously, the issue of poor governance often officials, business people, and users of public services. went unspoken, despite ample evidence of the link ● Learning activities, participatory action planning between good governance and development. Develop- programs, specialized learning programs, and support ment practitioners eventually realized that donor-funded for other units of the World Bank and other donors. technical assistance to build capacity was having only limited success because it relied too heavily on imported No longer downplayed or ignored, governance and capacity hardware and organizational software, with little corruption are now measured and analyzed—in the focus on the governance component of capacity. aggregate and in depth. Linking our governance indicators to development outcomes, we observe that aid efforts The World Bank now strives to build local capacity in must stimulate the demand for good governance, improve governance through rigorous diagnostics and analysis, citizen’s participation and empower them with effective 2006 annual report

41 voice, and build mechanisms for collective action by a ● Promoting innovative partnerships with donors to broad range of stakeholders—among them the private improve the coordination and cross-fertilization of sector, media, parliaments, civil society, and a reformed, empirical governance work. empowered judiciary. Moreover, transparency-related reforms in public institutions and more effective cross-border An important byproduct of our work in compiling the collaboration are also needed, for example, to address the indicators has been the exploration of connections among challenge of bribes paid by multinational companies. human rights, governance, and development. Recent WBI studies1 reviewed the links between so-called first-generation In FY06 WBI advanced the empirical and policy agenda on human rights (political and civil rights) and second-generation governance by: rights (socioeconomic), suggesting that advances in ● Expanding ongoing research on aggregate indicators, first-generation rights have stalled in recent years, which including backward revisions and yearly updates may soon affect second-generation human rights outcomes. (from 2002) These findings suggest the need to take first-generation ● Deepening cross-country analysis of firm, civil servant, and human rights issues into account when attempting to household surveys as a tool for concrete policy actions enhance the effectiveness of development aid. Political & Institutional Transparency Indices ● Exploring new governance-related frontiers—among them governance in postconflict and fragile states and issues of An important lesson from WBI’s work is that to improve transparency, human rights, and urban governance governance one must move beyond traditional themes,

High WBI’s new Transparency Index measures institutional 2.5 FIGURE 4.1 and political transparency in the countries of the world

60 100 x 60% 50 57% 52% 80 30% 32% 31% 28% 25% High 49% 51% 2.5 40 0 x 60 70% 68% 69% 72% 75% 30

40 ransparency Inde 20 T 0

10 20 Institutional transparency Political transparency

0 0 ransparency Inde -2.5

-2.5 T FY02 FY03 FY04 FY05 FY06 E FY02 FY03 FY04 FY05 FY06 Low V. A A CA N N Low LY A CA CA ON OP BEAN D DE ASI CD W ING ASI FRI NI R B OEC SIA NICS TH AFRIC AFRI RIBBEA OE NE D P AFRI A T U ARI T A U RAN RTH VIET UNIO CA SIA IZE RAN TH VIE T ASIA SO HA / T A IAL DEVELO SOUTH HA NOR TERN EU CA / C Multimedia F2F EAS EAS SA T NO ER SO CA S R -SA / EAS ERI B- RM EA ST B ST RMER SO AM SU EAS FO INDU T ASIA SU EA FO IN DDLE TIN AMERI EAS DLE LAT MI LA MID UCM Institutional Transparency UCM Political Transparency Note: Index ranges from -2.5 (worst) to 2.5 (best). Source: World Bank Institute, 2005.

1 Daniel Kaufmann. 2005. “Human Rights and Governance: The Empirical Challenge.” In Human Rights and Development: Toward Mutual Reinforcement, ed. Philip Alston and Mary Robinson. New York: Oxford University Press. Daniel Kaufmann. 2006. “Human Rights, Governance, world bank institute and Development.” Development Outreach (World Bank). July.

42

-

v such as public sector management, to confront issues Governance and anticorruption (GAC) BOX 4.1 such as transparency, which is associated with better socio- diagnostics in fragile states, FY06 economic and human development indicators, as well as with higher competitiveness and lower corruption. There remains a gap, however, between the conceptual sophisti- BENIN The newly elected government in Benin requested WBI cation of the transparency field and its measurement and support for a GAC assessment. Its goal is to obtain in- depth data on institutional vulnerability. The ministries empirical analysis. WBI has attempted to fill that gap by of development, economy, and finance have included generating transparency indices for 194 countries (figure an anticorruption component in their reform agenda. 4.1). The indices comprise two components—economic/ institutional transparency and political transparency— GUINEA To disseminate the results of the GAC surveys, a series compiled from more than 20 independent sources. Our of workshops was conducted in 2005. In the first, a two-day national event held in Conakry in July, work suggests that different types of transparency reforms representatives from key government institutions, civil are warranted for different stages of political and society, and the donor community discussed the main economic development and that transparency reforms findings of the GAC report. Two regional workshops in Boke and Kindia followed the national event. In each, should receive greater emphasis as a core component participants provided concrete recommendations to of second-generation institutional reforms. improve governance at the central and local levels. These recommendations were included in the revised national strategy. Multicountry enterprise surveys make it possible to analyze and compare developments in countries’ institutional HAITI Because NGOs loom large in service delivery in Haiti, quality and the performance of their public and private WBI added a fourth survey to its GAC diagnosis. Surveying NGOs made it possible to analyze gover- sectors. Recent studies offer evidence of the extent to nance from a new angle and expanded the range of which powerful firms exert improper influence to shape possible solutions. The GAC surveys also included an state policies, laws, and regulations for their own benefit. additional set of questions on security and human rights. The results have helped to promote an open dialogue between civil society and government on these In partnership with bilateral agencies and local NGOs, issues. A steering committee is working with the the Bank has supported the design and implementation country’s anticorruption unit to evaluate the role of the unit and set up a broader institutional framework to of in-depth diagnostic tools in many countries to improve improve governance. our understanding of governance dynamics at the micro level and to generate input for country-specific action MADAGASCAR Madagascar has completed a GAC report based on programs. During the past year, Benin, Haiti, Madagascar, surveys carried out in 2005. The focus of the work was the costs of corruption and ways to improve service Mozambique, and Paraguay have completed such delivery to households. A local firm, Agence Capsule, diagnostic efforts. Much of this year’s work has focused worked in collaboration with international groups at on the challenge of improving governance in some of Vanderbilt University and Casals & Associates. Results were disseminated in June. the world’s most fragile countries (box 4.1). The wealth of information collected has allowed policy makers to MOZAMBIQUE The government has recently drafted an anticorruption prioritize governance challenges and to design concrete strategy based on a GAC report issued in 2005. The policy responses to those challenges. report was discussed at a seminar staged in December 2005 with support from WBI and the British Council. That event attracted senior officials and members of The availability of in-depth country data has allowed us civil society, including most of the nation’s governors. to begin to consider producing sector-specific diagnostics (figure 4.2) that will allow policy makers to tailor PARAGUAY With WBI support, the Consejo Impulsor del Sistema Nacional de Integridad (CISNI) produced a locally instruments to address the challenges faced by each driven governance report of high quality, disseminated sector. WBI is piloting this in-depth, sector-specific at a national workshop in July. The workshop was an approach in Bangladesh. With strong support from the opportunity to discuss the next items on the governance agenda and to revise the Plan de Integridad, the country team and in partnership with BRAC, a local national governance action plan. NGO, the effort will enhance in-country capacity to 2006 annual report

43 Governance quality varies WBI’s in-depth information has also made it possible substantially from sector to study the quality of governance in different public FIGURE 4.2 to sector, as well as from agencies within a single country. The evidence available country to country so far suggests that governance shows substantial within-country variations that must be explained.2 Frequency of bribes, by service (2005–6) percentage of households that reported being asked for a Micro-level governance data have also made possible bribe to obtain a service (various countries) closer analyses of the determinants of municipal performance3 in terms of access to and quality of delivery of infrastructure services. The evidence CUSTOMS/IMPORTS suggests that there are complex interactions between globalization patterns, technology choices, governance, JUDICIARY and city performance. These results—and growing demand for help from cities—have led WBI to focus on the challenges faced by mega-cities, which are often SOCIAL BENEFITS quite removed from issues at the national level. WBI is currently supporting a pilot initiative to create city-level diagnostic instruments to explore the EDUCATION SERVICES Benin (2006) Haiti (2006) governance issues faced by very large cities in India. Madagascar (2006) HEALTH SERVICE Mozambique (2005) Other areas are emerging as new frontiers for Paraguay (2005) empirical work in governance. These include the role of the media, postconflict and fragile states, and TRANSIT POLICE alternative modes of engagement in countries where the government’s commitment to change is limited or 0 10 20 30 40 50 60 70 80 uncertain. WBI is working to generate data on media percentage of households in Africa in partnership with the Canadian International reporting being asked for a bribe Development Agency. The effort will index the media environment in African countries, looking at the Notes: Madagascar is not represented in the customs category. There are no data for social quality of the media, media laws and regulations, benefits in Benin and Mozambique. and management of media companies.

WBI is working with a broad group of practitioners to perform diagnostics while generating governance data develop a new framework for assessing governance and in critical sectors. WBI is also working with the Bank’s sustainable policy reform in fragile and postconflict transport network to study common characteristics countries. This work involves close coordination with and challenges across countries using the governance other development agencies and donors. In addition, diagnostic survey data collected over the past several WBI is focusing on alternative modes of engagement years. www.worldbank.org/wbi/governance. with partner countries on governance issues.

2 In the presence of diverse patterns across and within countries, we must ask whether any general conclusion can be drawn concerning specific measures that might help countries curb corruption. Recently, Recanatini, Prati, and Tabellini, in a paper presented at the Sixth Jacques Polak Conference (“Why Are Some Public Agencies Less Corrupt Than Others?—Lessons for Institutional Reform from Survey Data,” November 2005), analyzed the data from diagnostic surveys in eight countries and found that specific agency-level institutions—such as auditing mechanisms, publicly announced budget and personnel decisions, and merit-based personnel management—are associated with lower corruption in public agencies. 3 Daniel Kaufmann, Frannie Léautier, and Massimo Mastruzzi. 2006. “Governance and the City: An Empirical Exploration into Global Determinants

world bank institute of Urban Performance.” In Cities in a Globalizing World, ed. Frannie Léautier. World Bank Institute.

44 Comparative performance of India, China, and the United States on variables FIGURE 4.3 representing the four pillars of the knowledge economy, plus overall performance, for the most recent period for which data is available

GDP growth 10 Internet users per 10,000 people Human development index

Computers per 1,000 people Tariff & nontariff barriers

5

Telephones per 1,000 people Regulatory quality 0

Tertiary enrollment Rule of law

Secondary enrollment Researchers in R&D per million people

Adult literacy rate Scientitic and technical journal articles

Patents granted by USPTO per million people

USA CHINA INDIA

KAM scorecards rank the knowledge-performance of individual countries relative to the performance of all other countries in the KAM database (N=128). Countries are ranked on a scale of 0 to 10, with the top 10 percent of performers receiving scores between 9 and 10, the second 10 percent scores between 8 and 9, and so on. Thus, the closer the country is to the outer edges of the scorecard, the better positioned it is to take advantage of knowledge and innovation for its overall development.

Knowledge for Development India and on lifelong learning in China; a variety of capacity development initiatives and events; and launch The Knowledge for Development (K4D) program of the 2006 version of K4D’s Web-based benchmarking helps client countries access and use knowledge and tool—the Knowledge Assessment Methodology (KAM). innovation to strengthen their competitiveness and www.worldbank.org/kam. increase economic and social well-being. Noteworthy activities in FY06 included a major conference on KAM 2006 includes not only the latest available data, Knowledge for Africa’s Development: Innovation, but also additional variables related to the business Education, and ICTs; studies of the knowledge environment and innovation. In addition, new interactive economy in Finland, Japan, and Korea, and of the role tools enable the user to better tailor output and graphics of diaspora networks in spreading innovation; ongoing to individual requirements. For example, KAM’s global work on enhancing the environment for innovation in ranking feature presents, in a sortable table format, 2006 annual report

45 the various KAM indexes and knowledge-economy Learning events include workshops for government performance scores of 128 countries (figure 4.3). and private sector officials in Recife, Brazil; capacity The Knowledge Economy Community on the development exercises for staff at the Islamic Develop- Development Gateway (www.developmentgateway.org/ ment Bank; and a workshop in Kampala, Uganda on knowledge), supported by the K4D program, now includes capacity development for African research institutes more than 11,000 members, including representatives and networks. from client-country governments, the private sector, academia, and NGOs. K4D has established itself as a key Learning and knowledge exchange events provider of knowledge-economy resources on the Internet. For example, Google searches on keywords such as The Conference on Africa’s Development: Innovation, “India Knowledge Economy” and “Africa Knowledge Education, and ICTs (www.worldbank.org/wbi/africaknowl- Economy” show relevant K4D pages at the top of the list edgeconference), designed to raise awareness about the of search results. During the last year (June to June), traffic roles that education, innovation, and ICTs can play in on K4D sites almost tripled. The number of unique visitors countries’ economic development, brought some 230 grew from 2,700 to 6,900, while page views increased senior policy makers together with representatives from the from 24,000 to 71,000. private sector, academia, and civil society in 20 countries in Sub-Saharan Africa. Participants included the ministers of Special initiatives science and technology, education, and finance of South Africa, the minister of science and technology of Mozam- In FY06, K4D strengthened several of its new bique, and the minister of education of Guinea-Bissau. and emerging initiatives. Trevor Manual, South Africa’s minister of finance, who chaired the final plenary, made the point that African International migration of skills and talent is a growing countries also need to invest for the long term in education, field of academic inquiry and practical expertise. As they innovation, and information technologies. Developing focus on long-term growth, many countries reach out to countries such as China and India, as well as other Asian their diaspora for advice and investment funds. K4D is countries, are fast becoming part of the global value chain undertaking diaspora-related research and activities, for manufacturing and services, while African countries are including advisory services to the governments of largely left out. Many African countries are too reliant on Argentina, Chile, and Mexico. exporting natural resources. Longer-term strategies that focus on the sustained creation, adoption, and use of The New Industrial Policy consists of a set of innovative knowledge in all economic sectors are necessary to interventions that are distinct from the functional, horizontal foster higher welfare and competitiveness on the African industrial policy of the 1980s and 1990s and that avoid the continent. The conference was organized by the World familiar pitfalls of trying to pick future economic winners. Bank, the government of South Africa (through its Our work program on the New Industrial Policy combines Department of Science and Technology), and the cutting-edge policy research from WBI and leading government of Finland (through its Ministry for Foreign universities with the World Bank’s operational work. Affairs). The governments of France and Ireland also supported the conference. The ICT Leadership Community is designed to help break the isolation felt by many ICT leaders by offering K4D delivered two successful workshops on Francophone them a space in which to exchange experiences and African Universities in Service of Development, in share knowledge on the global and regional levels. Niamey, Niger, and Dakar, Senegal. Fifty francophone The intended result is peer-to-peer learning to improve African university rectors and professors gathered at decision making and outcomes. the November workshop to exchange successful experiences of their universities’ contribution to social Institutions in the public and private sectors are development. This work led to the publication of a coming to realize the role of knowledge in enhancing CD-ROM that presents more than 70 “success stories” the effectiveness of their operations. In addition to gathered for the Dakar event. The CD-ROM was widely pursuing investments in human resources and circulated within education communities in Africa. information technology, they have begun to devote considerable attention to harnessing the explicit and A conference in Paris on Intellectual Capital in the tacit knowledge they possess. The K4D initiative on Context of Knowledge Economies assembled some Knowledge Management for Organizational Capacity 100 participants from OECD countries and developing helps development organizations in client countries to countries for a discussion of the methodology of achieve greater impact through the application of measuring intellectual capital at the national, regional,

world bank institute knowledge management tools and practices. and municipal levels.

46 A seminar in Moscow on Reform of Technical Higher K4D POLICY STUDIES Education was organized by the World Bank, Russia’s Higher School of Economics, Russia’s National Training Foundation, and the Korea Development Institute (KDI). Finland as a Knowledge Economy: Elements of Success The main discussion points included the importance and Lessons Learned. Edited by Carl Dahlman, of linkages between universities and industries, Jorma Routti, and Pekka Ylä-Anttila. and how elite research organizations can act as springboards for innovation. Diaspora Networks and the International Migration of Skills. Edited by Yevgeny Kuznetsov. At the request of the Islamic Development Bank (IDB), Japan: Moving Toward a More Advanced K4D presented a training course on IDB Member Knowledge Economy. Edited by Hirotaka Takeuchi Countries and the Knowledge Economy: Opportunities and Tsutomu Shibata. and Challenges. About 40 participants from different parts of the IDB visited Jeddah, Saudi Arabia, in Korea as a Knowledge Economy: Evolutionary Process May for the course, in which participants used K4D’s and Lessons Learned. Edited by Joonghae Suh and tools and their own knowledge to assess the knowledge Jean-Eric Aubert. economies of the Islamic Republic of Iran, Nigeria, Qatar, Saudi Arabia, and Tunisia. Mexico’s Transition to a Knowledge-based Economy: Challenges and Opportunities. Carl Dahlman and Yevgeny Kuznetsov.

Lifelong Learning in China. Carl Dahlman, Douglas Zhihua Zeng, and Shuilin Wang.

“Knowledge Assessment Methodology and World Bank Country Operations in an Age of Global Competition.” In The Knowledge Economy in Development: Perspectives for Effective Partnerships, ed. Robert A. Vitro. Inter-American Development Bank. 2005.

Knowledge, Technology and Cluster-Based Growth in Africa. Eleven cases of enterprise clusters in five low-income and two middle-income countries in Africa. Edited by Douglas Zhihua Zeng.

Tanzania in the Knowledge Economy: Fostering Innovation, Productivity, and Technological Change. Anuja Utz. 2006 annual report

47 world bank institute

48 WBI’S THEMATIC PROGRAMS FY06 HIGHLIGHTS

WBI’S THEMATIC LEARNING PROGRAMS INCLUDE COURSES, SEMINARS, AND POLICY ADVICE on topics important to the international development process. Programs are normally tailored to specific country needs but may also address global issues such as governance and knowledge for development. Aligned with the Millennium Development Goals and the World Bank’s corporate operational goals, thematic programs undergo extensive peer review and draw on state-of-the-art theory and practice.

A shift in trends Selection for higher impact

Four related trends emerged for WBI’s thematic The criteria for selecting participants in WBI activities programs in FY06. First, the programs have become are linked to the nature of the activities. Focus-country highly demand-driven, increasingly country-focused, and programs are fully integrated with Bank assistance, so closely integrated with regional operations. Second, while participants are selected in conjunction with the relevant maintaining our advantage in skills building, working with country team. For global activities, most participants are organizations, and strengthening institutions, the programs selected in collaboration with the relevant World Bank provide a growing range of products and services to meet sector board, partners, and clients. the differing capacity development needs of our clients. That range includes the identification and sharing of best Extending reach practices, consensus building, multisector dialogue and partnerships, technical assistance, and implementation In FY06, about half of WBI’s thematic activities focused on support. Third, recognizing the long-term nature of skill building; two-thirds were delivered face to face. Most capacity development, the majority of our programs of the other events were delivered via distance learning have now been designed and implemented with a technologies, mostly through the Global Development multiyear framework to develop long-term capacity. Learning Network (GDLN) and other forms of videoconfer- Fourth, to leverage resources and integrate our efforts encing. More and more training events use e-learning, at the country level, we have increased the degree of generally Web-based. Most activities now combine several cooperation among our programs. modes of delivery.

Balancing country-specific and Consolidation of themes into centers global programs of excellence

Thematic programs fall into two categories—focus-country Beginning in FY07, to build on its comparative programs and global and regional activities. Focus-country advantages, WBI will focus on six thematic areas in programs accounted for nearly half of the WBI program which the Institute is already strong and has the potential budget in FY06, and that share is set to increase to 70 to become even stronger. Those areas are: governance, percent in FY07. Learning activities delivered through education for a knowledge economy, health systems, focus-country programs are integrated into the Bank’s infrastructure (including water and urban infrastructure), overall assistance strategy for that country, with a view capacity building for trade, and capacity building for to both impact and continuity. In its global and regional environment and climate change. In addition, WBI will activities, WBI convenes participants to learn about, and pursue four other thematic activities, but with its partner debate, relevant issues in the light of original research organizations in the lead. These are: finance and private performed by WBI or elsewhere in the Bank. Much of sector development, poverty reduction, agriculture and WBI’s global and regional work is carried out and delivered rural development, and leadership training. in collaboration with partner organizations; much of it supports the development of country-specific programs. 2006 annual report

49 FIGURE 5.1 In FY06 WBI delivered 828 learning activities that reached 90,400 participants, for a total of 315,538 participant training days

80

70 62K 60 54K 50 40

30 29K 29K 24K (thousands) 20 19K 18K 16K 15K 12K 10K 13K 10 6K 8K Participant training days 0

e e n e t s an al ad tio n Tr unity Urb /AIDS r and rur m lusion al and growth Financ c te blic sector Educa verty and in Wa overnanc ivate sector Com Glob Pu g Po Environment Infrastructure Pr development other activitie Social protection empowerme Health & HIV and social

Highlights international trade fair organizer. Now in its third year, the EXPO has become the largest annual gathering of carbon WBI’s thematic programs directorate (WBIST) is organized market actors in the private and public sectors. It combines into four divisions that work closely with the corresponding a trade fair with an intensive three-day program of seminars, Bank sector boards—human development; poverty workshops, panel discussions, and side events sponsored reduction and economic management; environmentally by participants. Carbon EXPO 2006 had some 2,000 and socially sustainable development; and finance and participants from 94 countries—among them 187 exhibitors private sector development (box 5.1). It is also the focal from 50 countries. Demand for exhibition space was 50 point for integrating gender issues in WBI programs. FY06 percent greater than last year. Carbon EXPO is expanding highlights for each of the divisions are presented below. regionally, with Carbon EXPO Asia scheduled to take place in Beijing in October 2006. That event will be jointly organized with the Asian Development Bank. In FY07, Environmentally and WBIEN will assume responsibility for the management socially sustainable of the overall Carbon Finance Assist Program. development (WBIEN) Professional Association of Water Carbon EXPO 2006 Utilities in Indonesia

WBI has been providing training and capacity building The Indonesia Water and Sanitation Program is a five-year support to the World Bank’s Carbon Finance Unit under the (2005–9) technical assistance and capacity building program Carbon Finance Assist Program. One of the most important that is scaling up through twinning. The program supports activities WBI helped deliver in FY06 was the Carbon EXPO, the government of Indonesia’s capacity building efforts on a joint venture of the World Bank, the International water supply and sanitation, water resource management,

world bank institute Emissions Trading Association (IETA), and Koelnmesse, an and water sector development, including strengthening

50 water supply governance and service delivery. One way the UN Global Compact, and Istituto Ethos, the forum took it does this is through a twinning program between the place on the occasion of the UN World Summit in New York Professional Association of Water Utilities (PERPAMSI) and in September 2005. The forum made recommendations to WBI. Under the program WBI is assisting PERPAMSI to the UN General Assembly on how the private sector can develop the capacity of Indonesia’s water utilities to help to bridge the gap in meeting the MDGs. Building manage assets, achieve financial viabiity, and become more on the momentum, WBI and its partners released a report responsive to the needs of users. WBI also will support entitled “Business and the MDGs: Fighting Poverty—A PERPAMSI in establishing a certification program for utility Business Opportunity,” and co-hosted a second global managers and local small contractors. conference at the World Bank in April on Business, NGOs and Development: Strategic Engagement to Meet the Developing capacity for natural resource Millennium Development Goals that brought together management in Africa more than 300 civil society and business leaders.

A project to build community institutions and capacity for Improving the business climate in India natural resource management at the ecosystem level in Africa is improving livelihoods, agricultural production, The first state-level investment-climate assessment in and ecosystem services in a dozen countries. The initiative India identified the regulatory framework as a major brings together rural development, natural resource, and impediment to growth in the Indian state of Orissa. As environmental management practitioners from the World part of its reform under the industrial policy resolution, Bank and the Global Environment Facility, offering them a the state government resolved to create a single-window platform for knowledge exchange on participatory natural investment clearance system to improve the business resource management. The initiative has produced analytic climate. To overcome inertia and develop the skills papers on institutional models, case studies (presented in a needed to implement the scheme, WBI’s Investment regional workshop in Senegal), distance learning work- Climate team, together with the Bank’s South Asia region, shops, and dissemination of outputs through publications designed an integrated program that included the and a Web site. A series of eight videoconferences involving sharing of best practice, skills training, technical advice, ten countries was delivered from November 2005 to March and direct implementation support. The Orissa single- 2006. The conferences addressed sustainable land manage- window system is now operational at the state level, and ment, indigenous knowledge and traditional medicine, and pilots have been implemented at the district level. payment for ecosystem services. The learning that occurs Investors may now deal with just one government agency. through the initiative is being fed back into the design and The time required for processing investment clearances management of GEF and World Bank projects. has been shortened significantly.

Forum for Women in Trade Finance and private sector development (WBIFP) Activities for women were an important focus of WBIFP’s Finance program in FY06. The Forum for Women in Trade, Business and the Millennium held in Dar es Salaam, Tanzania, in July 2005, addressed key Development Goals issues facing African women seeking financing for trade and exports. About 100 participants attended the forum. Topics One focus of WBIFP’s Private Sector Development program included small-enterprise financing and government policy is the role business can play in meeting the Millennium in Tanzania, women and the marketing of precious and Development Goals. With leading international partners, semi-precious stones, women in agro-business, women and the team mounted the 10th International Business Forum: the exportation of art, and women in the textile industry. Business and the Millennium Development Goals. Jointly The success of the event was recognized in an award organized with InWEnt Capacity Building International, ceremony led by Tanzania’s vice president. 2006 annual report

51 Policy dialogues in Madagascar the Arab Republic of Egypt, Kenya, and Kuwait. A series and Burkina Faso of workshops based on the World Bank’s publication, Expanding Opportunities and Building Competencies for Policy dialogues with ministers in Madagascar and Burkina Young People: A New Agenda for Secondary Education, Faso allowed the Public-Private Partnerships in Infrastructure has stimulated a healthy debate about secondary team to raise awareness about the development potential education in Asia and Latin America. Particularly notable of public-private partnerships, and about the important was the workshop on Growth Strategies for Secondary distinctions between such partnerships and privatization. Education in Asia, which brought to Malaysia 150 While modest in settings and costs, the sessions reached participants from 12 countries of East and South Asia. the most senior policy makers in these countries. The education team has exploited the potential of communications media with blended learning offerings. Radio programs for community Multi-Grade Teaching as a Policy Option, for example, development councils in Guatemala provoked discussion between participants and policy makers from Africa, Asia, and Latin America. Most municipal governments in Guatemala lack the capacity to engage citizens, a condition reinforced by the limited Helping to meet the MDGs in health capacity of civic groups to carry out basic functions assigned to them under the municipal code, notably the ranking of WBIHD’s Health and AIDS Program is raising the local spending priorities. In collaboration with the Guatemalan capacity of client countries to design and implement Institute for Radio Education and WBI’s Urban and Local comprehensive and effective health and AIDS programs. Government team, Guatemala’s secretary of planning FY06 highlights include a revamped flagship course, a developed a training program for community development new course on accelerating progress toward meeting the councils (COCODES), delivered via community radio. The MDGs in health, mainstreaming HIV/AIDS into poverty program has reached more than 2,300 registered learners reduction strategies, and expanding delivery of in its two ten-week deliveries (fall 2005 and spring 2006). Web-based courses through translation into multiple Weekly radio programs are supplemented by face-to-face languages. The program collaborates with some 30 local sessions in participating municipalities. The COCODES training institutions around the world to adapt its program is the first of three modules designed to build the learning products to local needs. capacity of local leaders. The second module (Participatory Planning) was delivered in June and July. The nation’s HIV/AIDS prevention among planning department intends to update and broadcast the injecting drug users COCODES learning course as part of its annual cycle, thus ensuring its sustainability. The Inter-Country Consultation on HIV/AIDS Prevention among Injecting Drug Users, convened in Tehran in April, assembled participants from neighboring countries with Human development (WBIHD) common social and cultural backgrounds (Afghanistan, Kyrgyz Republic, Pakistan, Tajikistan, Uzbekistan) to focus Workshops on secondary education on harm reduction, advocacy, religion and HIV/AIDS, and the role of law enforcement. Participants included WBIHD’s education program uses communication 70 senior policy makers and program managers from technologies to reach clients around the world. The health ministries, prison systems, social affairs, law program’s flagship course on Strategic Choices for enforcement, judiciary, and civil society, as well as Education Reform, held in Washington in May, was injecting drug users and representatives of people heavily oversubscribed. In response to specific country living with HIV/AIDS. The event was co-sponsored by needs, the education team distilled the course and the World Bank, the United Nations, the World Health

world bank institute delivered tailored offerings in three provinces of Brazil, Organization, and the Iranian government.

52 Conference on conditional cash transfers BOX 5.1 FY06 Thematic Programs WBIHD’s Social Protection and Risk Management Program deploys a range of instruments to help clients reduce or ENVIRONMENTALLY AND mitigate income risks that fall hardest on the poor. For SOCIALLY SUSTAINABLE DEVELOPMENT example, WBI is supporting the World Bank’s efforts in ● Community Empowerment and Social Inclusion Africa and South Asia to implement a regional social www.worldbank.org/wbi/empowerment protection strategy. In June the program helped to mount ● Environment and Natural Resources Management www.worldbank.org/wbi/environment a high-profile conference on conditional cash transfers, ● Water and Rural Development which enable poor recipients to invest in their children’s www.worldbank.org/wbi/water schooling or make regular use of preventive health care www.worldbank.org/wbi/rural services. The conference brought to Turkey more than 350 participants from 40 countries, including senior decision FINANCE AND PRIVATE SECTOR DEVELOPMENT makers and aid donors. An estimated 850 people followed ● Financial Sector Capacity Development the live webcast, and nearly 300 participated in a subse- www.financelearning.org quent Web discussion forum. Prime Minister Erdogan and ● Private Sector Development (Corporate Governance and Corporate Social four ministers of the Turkish government opened the Responsibility; Investment Climate) conference with substantive contributions that were www.worldbank.org/wbi/corpgov extensively covered by the local media. www.investmentclimate.org ● Public-Private Partnerships in Infrastructure www.worldbank.org/wbi/infrastructure Poverty reduction and ● Urban and City Management economic management (WBIPR) www.worldbank.org/wbi/urban

HUMAN DEVELOPMENT Assessing the supply and demand sides ● Education of good government www.worldbank.org/wbi/education ● Health and AIDS WBIPR’s Public Sector Program covers public management www.worldbank.org/wbi/healthandaids and institutions of accountability in governance—the ● Knowledge for Development supply and demand sides of good government. During www.worldbank.org/wbi/ FY06, the program delivered 113 activities involving knowledgefordevelopment participants from about 60 countries and totaling more ● Social Protection and Risk Management than 60,000 participant training days. Topics included local www.worldbank.org/wbi/socialprotection government, intergovernmental finance, fiscal management, POVERTY REDUCTION AND ECONOMIC public financial management and accountability, MANAGEMENT anticorruption, legal and judicial reforms, parliamentary ● Poverty and Growth strengthening, and youth and good governance. www.worldbank.org/wbi/povertyandgrowth ● Public Sector Governance Senior policy seminars on www.worldbank.org/wbi/governancelp fiscal management ● Governance and Anti-Corruption www.worldbank.org/wbi/governance In the area of fiscal management, the division is active ● Trade www.worldbank.org/wbi/trade in many countries around the world. We organized senior policy dialogues on several subjects—among them strengthening the legislative framework for fiscal

responsibility (in India and Nigeria), intergovernmental 2006 annual report

53 WEB SITES OF INTEREST

Capacity Development Resource Center Scholarships www.worldbank.org/capacity www.worldbank.org/wbi/scholarships

Development Education WBI Evaluation Group www.worldbank.org/wbi/ www.worldbank.org/wbi/evaluation developmenteducation WBI Learning Design Global Development Learning Network www. worldbank.org/learningdesign www.gdln.org WBI Publications Knowledge Sharing www.worldbank.org/wbi/publications www.worldbank.org/ks

Partnerships www.worldbank.org/wbi/partnerships

finance, regional fiscal disparities, and accountable particular emphasis was placed on enhancing parliamentary local governance (in China, Ethiopia, Ghana, Indonesia, scrutiny of the budget process, improving parliamentary Kenya, the Kyrgyz Republic, the Russian Federation, and administration, and increasing parliaments’ ability to Thailand). Global dialogues on federalism were offered play a proactive role in reducing poverty. During the in countries such as Brazil, China, India, the Russian year some 4,000 members of parliament and their staffs Federation, and South Africa. Public financial management from countries in Africa, Asia, Latin America, and the and accountability were a focus in Afghanistan, the Lao Middle East participated in these activities. The People’s Democratic Republic, the Republic of Yemen, subprogram on legal and judicial reform helps and several countries in Sub-Saharan Africa. widen access to justice, promotes alternative dispute resolution, and supports constitutional reforms. In FY06 Access to information, it organized activities in Ecuador, Guatemala, Kenya, judicial reforms, and good governance Madagascar, Morocco, Senegal, and Turkey. Anticorruption as a theme is woven into many of the governance The division’s work on media and information aims to group’s learning programs. Stand-alone activities at the create an enabling regulatory environment for open local level were carried out in Bolivia, Brazil, Colombia, information access, in part through capacity building Ecuador, Guatemala, Honduras, Mexico, Nicaragua, among government information officials, journalists, and and Paraguay. Client ownership and support of these civil society. Activities in FY06 promoted open and programs continues to be strong. responsive governance environments and effective media institutions in Africa, East Asia, and South Asia. Implementing poverty reduction strategies The activities on parliamentary strengthening, delivered in close association with international partners, support WBIPR’s Poverty and Growth Program (PGP) assists clients in

world bank institute parliamentary capacity building worldwide. In FY06 implementing poverty reduction strategies through poverty

54 measurement and monitoring, impact evaluation, and governors to discuss the growing external imbalances in sectoral costing and prioritizing for annual budgets and the world economy and how the adjustment process in medium-term expenditure frameworks. For example, the major countries and currencies could affect developing program is helping Thailand’s National Statistical Organiza- countries, particularly the emerging markets. Joining WBIPR tion to redesign and test poverty surveys, which in turn will in organizing the event were the Federal Reserve Bank of help policy makers and researchers to monitor poverty and San Francisco, the Bank of England, the Bank of International MDG indicators. The International Poverty Reduction Settlements, and Banque de France. Center in China receives WBI support to produce joint training courses on poverty analysis, monitoring, and impact Trade policy and WTO accession evaluation. The center has begun to provide training for African officials, contributing to South-South learning. The The Trade Program emphasizes international negotiations program’s contributions to civil-service training in the Lao under the Doha Round of trade talks, particularly agricultural People’s Democratic Republic include development of the trade issues among African countries related to Doha economics curriculum, training of trainers in poverty analysis and regional integration. Several of the program’s and impact evaluation, economic policy issues related to activities in FY06 were especially notable. In Russia and implementation of poverty reduction strategies, and the Commonwealth of Independent States, where recent upgrading of library and information systems (through a estimates of the economic impact of WTO accession were twinning arrangement with the Korea Development presented, the Trade Program trained trainers in trade Institute). National statistical offices in the countries of policy and WTO accession. In the Arab Republic of Egypt Europe and Central Asia are being strengthened through a program of capacity building on free-trade negotiations a three-year project on gender statistics, launched in FY06 prepared Egyptian negotiators. Former and current in cooperation with other Bank units, bilateral donors, and negotiators from nations that have successfully negotiated the UN Economic Commission for Europe. trade agreements brought pragmatic negotiating skills and technical knowledge to participants.

Senior policy seminar on capital flows

A global senior policy seminar on capital flows in Paris, one of PGP’s fee-based macroeconomic management seminars, brought together 35 central bank governors and deputy 2006 annual report

55 world bank institute

56 CAPACITY MULTIPLIERS TECHNOLOGY AND PARTNERSHIPS

The multimedia solutions used by WBI and its many partner organizations widen the circle within which learning and dialogue occur. WBI course participants take back to their ministries, municipalities, offices, and businesses not just the knowledge they have acquired, but also CD-ROMs, printed course materials, and the business cards of new contacts. What they do with all this after the event makes the difference between “just another course” and true capacity development—an intervention that strengthens learners’ ability to initiate, design, and implement projects, programs, and reforms in their home countries.

Quickly applying new knowledge, engaging with col- leagues as you do so, and being able to tap, real-time, the knowledge of others who work on similar challenges are essential parts of the type of learning that changes not just individuals, but also organizations, institutions, and development outcomes. Over the last year WBI teams have pushed the limits of what multimedia-based tech- nologies and partnerships offer in facilitating interventions that last a lifetime. can be found at: www.worldbank.org/bspan and www.worldbank.org/devforum. Multimedia technology Virtual conferences gather far-flung WBI’s Multimedia Center reflects the importance of participants nurturing innovative approaches to learning that harness the power of technology and technology partnerships, To make international conferences accessible to all such as the Global Development Learning Network interested participants, and not just the lucky few with (box 6.1). The Multimedia Center is staffed by 15 time and money for travel, WBI teams experiment with audiovisual producers, programmers, graphic designers, interactive technologies and methodologies that enable and learning experts. Working in Washington, Moscow, people around the world to take part in conferences from and Paris, they provide integrated technology services to their home or office. The WBI team working on the Third WBI teams wishing to use the full range of tools and International Conference on Conditional Cash Transfers, techniques available to extend the impact of their work held in Istanbul in June, took up the challenge to double beyond a specific place or time. Particularly notable in the attendance by providing a full virtual conference experi- last year was the center’s growing use of emerging social ence. They succeeded. While some 300 practitioners in networking tools and integrated audiovisual technologies. Istanbul learned about the promise of conditional cash These tools make it possible to create truly interactive transfers as a tool for lifting families out of poverty, an virtual extensions of learning events. Drawing on several additional 396 people in 69 countries experienced the successful pilots, the team is exploring how partner same conference virtually and live through a Web site agencies and institutions in developing countries can that provided complete conference coverage and help provide multimedia solutions to WBI course teams. facilitated involvement from remote participants through an e-discussion forum. All sessions were streamed live, Specific examples for the use of emerging social network- and an online resource center with video interviews and ing tools and integrated audiovisual technologies other learning materials allowed visitors to delve deeper 2006 annual report

57 Continuous learning from a blog A unique partnership bears fruit: the Global Develop- WBI’s alumni often return to us after having attended BOX 6.1 ment Learning Network courses or workshops in the past. Listening to these return (GDLN) and WBI visitors, we discovered that their experience in applying what they learned made them especially good students—and even better peer mentors. To capitalize GDLN, a World Bank initiative, is today a global on this “alumni effect,” WBI’s Poverty and Growth community of more than 120 learning Affliates that Program launched an initiative that brings together more cooperate in providing technology-supported learning and knowledge sharing services to individuals than 6,000 alumni who have attended its workshops and and organizations working in development. GDLN courses over the past years. Working with WBI’s Multimedia Affiliates have become agents of change in their Center, the team set up a poverty and growth blog. Best countries, facilitating access to experts and promoting dialogue among developing countries. known for their role in political dialogue, blogs often are built around one person’s insights and opinions on political or other developments. WBI piloted the tool’s “If my health minister wants to find out how to collaborate with countries in Asia on avian flu, I can usage in a somewhat different context—with exciting call on GDLN Affiliates around the world to make this results. This blog, designed to build a tight-knit happen,” says Bahiah Khamsi, director of a GDLN community engaged in an open and ongoing dialog on Affiliate in Ecuador. Hosting 927 activities in FY06, GDLN Affiliates have come to see themselves as poverty and growth issues, is run by a team that posts agents of change when critical knowledge or policy topic-specific news and resources several times a week dialogues that cross national borders are at stake. and engages in debate and dialogue with readers. Within They offer the use of information technologies, such as videoconferencing and the Internet, to organizations a short time, the blog’s community has grown to 8,000 that need to collaborate or communicate with distant regular visitors who react to postings and discuss their partners and stakeholders. As these technologies ideas on country-specific poverty reduction strategies, become increasingly widespread, the expert facilitation and event coordination skills of GDLN Affiliates, as well contribute cases and data, and propose new approaches as their ability to rely on fellow Affiliates worldwide, to poverty measurement. With minimal effort, a continuing are shaping a unique learning community. learning experience is enriching its members every day, gaining a life of its own. http://pgpblog.worldbank.org WBI has nurtured GDLN since its inception in 2000, building on its experience in technology-based distance Order amid chaos: a coordinated response learning techniques. Project and country teams from the Bank’s operational regions quickly recognized the to mitigate disaster value of collaborating with GDLN, and early in FY06 they took over the responsibility for the emerging When disaster strikes, the ability to organize resources GDLN regional associations. WBI now focuses on the global aspects of the partnership, working through a quickly around priorities can save thousands of lives. small secretariat. A WBI logistics team helps interna- How does a country acquire that ability? In the aftermath tional clients grasp how to make best use of the GDLN of the November 2005 earthquake in Pakistan, government worldwide network when organizing a learning or communication event that could benefit from a distance organizations, international organizations, and NGOs component. Today well over two-thirds of GDLN clients struggled with the challenge of making the best use of are organizations external to the Bank. In FY06, WBI assistance proffered by many governments, organizations, accounted for just 118 of GDLN’s 927 learning events, about half of the Bank’s usage of the network. and individuals. A World Bank team commissioned work on an interactive database that would collect and share information about agencies’ relief resources and the areas www.gdln.org where these could best be used. A serious challenge was how to package the information so that it would be readily accessible to the groups involved in the rescue efforts. WBI’s Multimedia Center was called in to help. Within days its into specific topics. All sessions were made available programmers had designed a user-friendly interface for the in English and Spanish, a first for events of this kind. data. In doing so, the programmers drew on their experience Some 1,800 additional people read the online discussions in building the swift and flexible interactive applications that without formally registering for the conference. users of WBI’s most prominent products, such as the After the conference ended, participants in Africa and Governance Indicators (http://governance.worldbank.org) Latin America continued discussions with contacts they and the Knowledge Assessment Methodology (http://kam. made online on how they could adapt conditional cash worldbank.org), have come to appreciate. Risepak, for Relief transfers for use in their countries. The virtual conference Information System for Earthquakes Pakistan, combines design catalyzed collaboration and an exchange of information on available resources and on the ability of relief ideas that have lasted well beyond the actual event. agencies to deliver them, along with geographic information

world bank institute www.virtualcct.net drawing on GPS data. Where is medicine most needed?

58 Which roads are open? What should be done with food for sustaining the capacity they build. WBI’s partnerships supplies given the time it may take to transport them? take two forms: resource partnerships and delivery Risepak helped relief agencies coordinate their efforts partnerships. by finding quick answers to these questions. Hosted and maintained in Pakistan, Risepak won the prestigious “Resource partners”—donor institutions—development Stockholm Challenge Award in the Public Administration cooperation agencies, multilateral institutions, foundations, category. www.risepak.com and private corporations—commit financial, technical, and intellectual resources that help WBI extend the reach, Learning by doing: catalyzing change deepen the content, or prolong the engagement of its programs. Partnering with such entities also has the Participants in Burkina Faso and Senegal did not know benefit of improving the coordination and increasing that they were about to implement the changes they the harmonization of capacity development activities. hoped for their countries when they signed up for a WBI e-learning course on community driven development “Delivery partners” in recipient countries strengthen (CDD) that promised to help participants identify ways local ownership and commitment, mobilize local resources, of bringing poor and marginalized people into the quest and apply local knowledge to make WBI’s programs more for sustainable development. effective. As they learn, through collaboration with WBI, how to deliver such programs, delivery partners sustain Believing in “learning by doing,” a WBI team partnered and replicate programs even after WBI’s initial engagement with the University of Ouagadougou in Burkina Faso, the has ended. National School of Applied Economics in Senegal, and GDLN centers in both countries to design an innovative, Some partner organizations act in both capacities at blended learning course. The WBI team took more than once—providing resources and enhancing delivery 60 students, local development specialists, civil (boxes 6.2 and 6.3). administrators, and economists on an interactive learning adventure that drew on the panoply of services available Each year, about half of WBI activities are delivered jointly at the GDLN centers. Advanced Internet facilities, with partners. WBI continues to establish new partnerships videoconferencing, and the expertise of trained staff and to nurture existing ones: it now has formal agreements underpinned a combination of face-to-face and electronic with 187 partners (appendix 5) and informal arrangements sessions. The course modalities inspired participants to with about 200 others. practice the behaviors that they sought to promote in CDD projects: self-reflection, proactive problem solving, mutual Partners share with WBI the costs of, the credit for, and the coaching, and collaboration. A course Web site enabled risks associated with jointly agreed activities. They also participants to access modules, post ongoing country help to provide expertise, content, facilities, staff, funding, group work, provide feedback, and share insights about the and other inputs. It is the commitment of resources and institutional arrangements needed to empower community the shared goals and work programs that distinguish groups and local governments. “Participants found that the partners from other cooperating organizations, such as blend of delivery modes offered in this course, and the consulting firms. emphasis on e-learning, optimized their capacity to absorb and acquire useful knowledge,” said Jean-Marc Yameogo, Resource partners training coordinator at the GDLN center in Burkina Faso. By the end of the course, participants had built their own The contributions of resource partners in FY06 represented community and equipped its members with the skills they nearly half of WBI’s total working capital. The largest needed to drive change in local development practices. financial contributions come from major bilateral aid To multiply this experience, the University of Ouagadougou agencies, with the remainder coming from foundations, and the School of Applied Economics in Senegal intend the private sector, and other organizations. to make this pilot e-learning course a standard component of future programs. Anticipating such reactions, the WBI Japan has been one of the most generous of WBI’s team has created a course that can be reused and readily resource partners, not only financially, but also adapted for other audiences. intellectually. Through its Policy and Human Resource Development–WBI Capacity Development Grants Program, Japan made a substantial financial contribution WBI’s EXTENSIVE over many years to developing individual skills and partnership network enhancing organizational excellence. In FY06 Japan continued to be one of the largest donors to WBI Partnerships are increasingly important for the delivery of programs and played an integral role in enabling

WBI’s country-specific, regional, and global programs, and WBI to implement country-specific programs, 2006 annual report

59 particularly in Asia, that were aligned with country organizations. WBI’s partnership with the Commonwealth assistance strategies, the recipients’ own poverty reduction Parliamentary Association (CPA) is an excellent example. strategies, and internationally agreed development goals. In FY06, WBI and CPA organized seminars on strengthening Japan’s financial contributions supported WBI’s social parliamentary scrutiny of the budget, curbing corruption, protection program in South Asia, WBI’s flagship courses on and reducing poverty, among other topics. The Parlia- health sector reform and sustainable financing in Mongolia, mentary Oversight for Poverty Reduction workshop, and a series of leadership seminars on EU accession in Turkey. held in The Gambia in August 2005, was a part of WBI’s ongoing support to the parliaments of Ghana The Canadian International Development Agency (CIDA) and Nigeria and of CPA’s capacity building program is WBI’s oldest resource partner. Over the years CIDA has for West African members of the British Commonwealth. supported numerous thematic and country programs. WBI and CPA also coordinated a study group on CIDA now supports WBI’s governance program in Africa, improving parliamentary administration, jointly developed including activities on local governance, judicial reform, a professional development program for parliamentary governance diagnostics related to the media and staff, and undertook joint research on the role of information sector, capacity building in the media, and parliament in curbing corruption. the strengthening of parliamentary oversight. CIDA also draws on a substantial field presence, in particular, Another example of an intellectual partnership is WBI’s experts engaged in projects financed by the Canada collaboration with the Zicklin Center for Business Ethics Fund for Africa, to contribute technical and intellectual Research at the Wharton School of the University of resources to WBI programs. Pennsylvania. The center collaborates with WBI’s Corporate and Social Responsibility Program, applying Some resource partners make an intellectual its substantial expertise to learning and knowledge-sharing contribution by developing the content for training activities such as the recent conference on Research events, customized for geographical and cultural factors on Corruption and Its Control: The State of the Art, and often prepared in the local language. The organiza- held at the Wharton School of Business. Resource tions that partner with WBI in this kind of work typically partners also provide technical support. They frequently include universities, think tanks, foundations, and other contribute experts, for example, to WBI’s training and academic institutions, as well as NGOs and private sector technical assistance programs.

BOX 6.2 WBI and partners are building capacity to fight AIDS, tuberculosis, and malaria

A partnership between WBI and World Health Organization (WHO)—in collaboration with UNICEF, UNAIDS, the Global Fund for AIDS, Tuberculosis, and Malaria (GFATM), and the governments of the United States, France, and Canada—helps countries to procure and manage critical drugs and related supplies. The initiative has made possible a steep increase in the number of people on antiretroviral (ARV) treatment in low-income and middle-income countries—from 400,000 at the end of 2003 to about 1 million by July 2005.

The partnership dates from 2003, when WHO, UNAIDS, and the Global Fund declared that poor access to ARV drugs constituted a global health emergency. The World Bank and WHO established a partnership to respond to the challenges of poor drug procurement and supply management systems for scaling up antiretroviral therapy. WBI provided technical expertise, logistical support, and experience in supporting learning and training. WHO provided major funding for the initiative, together with UNAIDS, UNICEF, the Global Fund, the UN Fund for International Partnerships, and the governments of France, the United States, Canada, and the Netherlands.

WHO, WBI, and USAID organized early hands-on training workshops for country-level implementation agents and key staff in procurement, logistics, and management of supplies of antiretrovirals and related supplies, drawing on Battling HIV/AIDS: A Decision Maker’s Guide to the Procurement of Medicines and Related Supplies, produced under the partnership by WHO and the World Bank.

In FY06, WHO was a principal delivery partner in three ARV Drug Procurement and Supply Management Workshops in Bangkok, Moscow, and Nairobi. WBI alone delivered two other workshops in the same series. In addition, WHO organized and delivered two training of trainers workshops—one in Copenhagen for 30 English-speaking trainers; another in Dakar for 35 French-speaking trainers.

The initiative has already produced lasting results, training more than 500 professionals, assisting in the development of more than 30 procurement and supply management plans, and creating a busy network of practitioners. world bank institute

60 The Korea Development Institute (KDI), an important strategic partner of WBI since 2002, provides financial and BOX 6.3 WBI and JICA team up other support for the Korea Knowledge Partnership to build performance Program. KDI’s School of Public Policy and Management monitoring systems shared Korea’s expertise in public expenditure management and economic development with audiences in Kazakhstan, the Lao PDR, and Turkey. The partnership has strengthened WBI and the Japan International Cooperation Agency the capacity of the Lao PDR’s national training institute for (JICA) are partners in a productive and successful civil servants in public financial management and economic collaboration in monitoring and evaluation (M&E). Over the last three years, the partnership has development. It has improved government procurement delivered a series of courses in South Asia and Africa practices in Kazakhstan through dialogue and a series of for client countries and field staff of JICA and the workshops cohosted by KDI and WBI. World Bank. These and other activities have enabled several countries to develop national performance monitoring systems. Many resource partners provide a mixture of resources. For example Belgium’s Directorate General for Development JICA provided financial, intellectual, and technical Cooperation has funded several WBI programs over many contributions to the M&E courses by funding the work years. It recently helped WBI expand its anticorruption of a Tokyo-based evaluation specialist, instructors, and program in francophone Africa and now is helping to consultants for the development of training materials. In addition, JICA helped WBI deliver the training events, develop the first regional anticorruption observatory, for example, through the use of JICA’s distance learning the Observatoire de lutte contre la corruption en Afrique system, JICA-Net. v centrale, through financial contributions and help in shaping the program’s strategy. In FY06, WBI and JICA jointly organized an M&E training course that connected through GDLN and JICA-Net sites Delivery partners in Bangladesh, Papua New Guinea, Sri Lanka, Tokyo, and Washington. The course, Quantitative Methods for M&E, gathered some 50 client country officials and Many institutions in client countries collaborate with WBI project staff. by delivering capacity development activities. In addition to providing facilities and administrative support, distribut- These collaborative efforts have paved the way for ing educational materials, and conducting follow-up continuous technical and strategic cooperation with activities, delivery partners help to develop content or to JICA in many countries of East and South Asia. adapt it to local conditions and circumstances. In so doing, they expand their own ability to independently manage and deliver capacity development activities and learning programs. WBI’s delivery partners include NGOs, commu- nity foundations, universities, think tanks, and private and the Bank’s Middle East and North Africa region in training institutions. Marseilles. It is leveraging the experience of European local governments to benefit other cities in the region, The South African Department of Science and Technology mainly those where both the World Bank and Cities (DST) partnered informally with WBI’s Knowledge for Alliance work jointly. This partnership has helped WBI Development Program to organize a conference on to scale up its training and knowledge-sharing activities Knowledge for Africa’s Development: Innovation, Education, on critical issues such as urban development, governance, and ICTs in Johannesburg in May 2006. DST helped and transparency. develop the conference program and organized the event. Several partners are collaborating to support the African China’s Ministry of Finance, another delivery partner, Institute of Science and Technology (AIST), which was worked with WBI and CIDA to develop and deliver a series conceived by the Nelson Mandela Institution. Supported of courses on reforming the fiscal system in China to deal by WBI, the International Finance Corporation, and other with regional fiscal disparities and improve access to basic leading financial and academic institutions (including the services by the rural poor. They also helped to stage a African Development Bank, the Indian Institute of dialogue in Hohod on the reform of local government Technology-Bombay, and the University of California), organization and finance in China with a special emphasis the AIST initiative will develop four campuses across on access to basic education and health services by the Sub-Saharan Africa. The Nigerian and French governments rural poor and migrants. have contributed funds in support of these centers of excellence, which will focus on educating graduate The Knowledge Network Agency for the Middle East and students and conducting research in specific areas of

North Africa is a World Bank office set up jointly by WBI science and technology relevant to Africa. 2006 annual report

61 world bank institute

62 LEARNING THROUGH EVALUATION

ESTABLISHED IN 1997, WBI’S INTERNALLY INDEPENDENT EVALUATION GROUP (WBIEG) conducts systematic evaluations and studies of WBI’s strategic directions and capacity development programs, providing objective, timely, fair, and useful information on the effectiveness, outcomes, and impact of those programs.1 WBIEG also supports the development of monitoring and evaluation capacity through training.

WBIEG’s analyses, evaluations, and research fall into ● Development of evaluation three major categories: methodologies to assess ● Monitoring of the immediate quality of learning outcomes of efforts to activities. Learners assess the quality, relevance, and develop organizational and usefulness of the activities they attend. WBIEG institutional capacity. produces a periodic quality report for WBI. ● Support and encouragement ● Evaluation of outcomes. WBIEG conducts rigorously of a culture of results designed tracer studies of participants in WBI’s monitoring and self-evaluation capacity development programs, using both in collaboration with quantitative and qualitative data. The studies assess other Bank units. the degree to which programs are effective and the extent to which the information, knowledge, and skills To support the implementation of these principles, imparted in the programs are utilized by participants. WBIEG developed a formal disclosure policy for ● Strategic evaluations and research studies. These its findings and a mechanism for WBI’s management reviews and research studies assess WBI’s strategic to respond to WBIEG’s recommendations, both to be directions and internal functioning. Diagnostic or implemented in FY07. metanalytic in nature, they often yield early information on the efficiency and likely impact of the programs they cover. Outcomes evaluation: WBI’s country focus is bringing In FY06, in response to the World Bank’s heightened better outcomes focus on results and its growing emphasis on enhancing capacity to promote sustained growth, WBIEG honed a WBIEG expanded its evaluation of WBI’s country-focus new strategy to meet its mandates and objectives. That approach in FY06, analyzing data covering four fiscal years strategy also reflects WBI’s consolidation of its country- (FY03–FY06) (table 7.1). focused strategy and expansion of activities to develop organizational and institutional capacity. WBIEG surveyed some 2,900 WBI clients in 25 focus countries and asked them to rate the effectiveness of Three principles underpin WBIEG’s strategy: the capacity development programs in which they had ● A focus on direction. Evaluations that answer the ques- participated and the degree to which they utilized the tion, “Are they doing the right things?” precede those knowledge and skills they gained from those programs. that address “Are they doing things well?” Clients rated the effectiveness of WBI’s programs on a

1 WBIEG also evaluates the Knowledge and Learning Board (KLB), the World Bank’s staff training arm. 2006 annual report

63 TABLE 7.1 Focus countries included in WBIEG’s FY06 outcomes evaluation, by region

East Asia & Europe & Latin America Middle East & Africa Pacific Central Asia & Caribbean North Africa South Asia

Burkina Faso China Russian Federation Bolivia Arab Repubic of Egypt India Ethiopia Indonesia Tajikistan Brazil Islamic Republic of Iran Sri Lanka Ghana Philippines Turkey Guatemala Morocco Kenya Thailand Mexico Republic of Yemen Nigeria Vietnam Senegal Tanzania

seven-point scale on three dimensions: raising their It is important to engage high-level participants awareness, improving their knowledge and skills, and leaders for catalyzing change. Clients in top-level and providing them with strategies and approaches to positions, including ministers and deputy ministers, were address the needs of their organization or country. significantly more likely to report using what they learned for operational purposes, compared with those in other The results show that WBI’s country-focus strategy is positions (figure 7.3). However, this category of clients resulting in better outcomes than before (figure 7.1). The comprised only 10 percent of the sample. ratings of the effectiveness of the FY05 programs were significantly higher than they were for FY01 programs, con- Relevance to country needs ensures effectiveness. A key trolling for a number of important variables, such as gross variable predicting effectiveness and impact was the national income per capita (GNI per capita), activity relevance of WBI’s programs to the specific needs of the features, and clients’ position in their organization. The country. Activities that were highly relevant to the country’s FY05 overall effectiveness ratings were 5 percent higher needs were more effective than those that were not relevant than the FY01 ratings. at all (35 percent). WBI’s activities were rated as being signifi- cantly more relevant in FY05 than they were in FY01 (figure 7.4). Clients also rated the degree to which they had used the knowledge and skills they acquired for academic Effectiveness is higher in low-income countries. WBI’s purposes, such as research and teaching, and operational effectiveness was higher in low-income countries than purposes, such as influencing legislation and developing elsewhere. Thus, there is a need for WBI to develop a organizational strategies. WBI clients in FY05 were more relevant strategy for middle-income countries than it significantly more likely to report using what they had currently has. learned as compared to their counterparts in FY01 (figure 7.2). Controlling for a number of variables, Pedagogical use of action plans improves effectiveness. the FY05 ratings for overall use were 8 percent higher Having participants develop an action plan to use the than the FY01 ratings. knowledge and skills they gain boosted effectiveness by 6 percent. However, fewer than half, 43 percent, of WBI The lessons learned in this study echo the findings clients reported being part of activities that utilized this of smaller country-focused studies completed in approach. Sixty-six percent of those who did develop

world bank institute previous years. action plans reported using them in their work.

64 According to learners, WBI WBI’s impact increased FIGURE 7.1 effectiveness increased FIGURE 7.2 significantly between FY01 significantly between and FY05, as learners made FY01 and FY05 greater use of course material 6

5 6

5 6 4 4 5

3 3 4

2 3 2 FY05 3.8 5.0 3.9 5.1 3.7 4.9 1 4.8 5.6 5.0 5.6 4.9 5.8 4.8 5.3 2 FY05 FY01 1 FY05 FY01 0 1 OVERALL AWARENESS KNOWLEDGE STRATEGY & FY01 0 EFFECTIVENESS & SKILLS APPROACHES 0 OVERALL USE ACADEMIC USE OPERATIONAL USE OVERALL AWARENESS KNOWLEDGE STRATEGY & EFFECTIVENESS & SKILLS APPROACHES Scale: 1 = not effective at all. 7 = extremely effective Scale: 1 = not at all. 7 = very often

Top-level clients report WBI’s programs are FIGURE 7.3 greater use of learning than FIGURE 7.4 more relevant to specific do officials in other positions country needs

5 6 4 5 3 5.0 4.6 4.4 5.0 4.7 4.5 5.0 4.6 4.3 4 2 3

1 2 5.2 5.6 5.7 5.7 5.9 1 0 OVERALL USE ACADEMIC USE OPERATIONAL USE 0 FY01 FY02 FY03 FY04 FY05 Top level (10%) Mid-level (30%) Other (60%)

Scale: 1 = not at all. 7 = very often Scale: 1 = extremely irrelevant. 7 = extremely relevant

Top Level (10%) Mid Level (30%) Other (60%) 2006 annual report

65 Strategic studies: on how to simplify the questionnaires used for assess- methods to ensure ments of quality at entry and quality of supervision. effectiveness and impact ● WBIEG continued to provide monitoring and evaluation training to clients and Bank staff in partnership with other Among strategic studies conducted in FY06, WBIEG Bank units. In FY06, WBIEG provided 17 training courses performed a metanalysis of 31 of its evaluations. It also for Bank staff and clients from 14 countries. Among these reviewed the World Bank’s partnership with the Joint Africa courses, six were provided through distance learning. Institute and studied approaches to joint client–staff learning. ● Finally, WBIEG’s dissemination program includes Evaluation Briefs that summarize the key findings of The metanalytic review highlighted some key lessons evaluations, other publications, and presentations at learned, including those presented above. It also found staff meetings and professional conferences. The group’s that programs that provide ongoing support and follow-up publications and briefs are available on its Web site. are more effective and are put to greater use. www.worldbank.org/wbi/evaluation

The purpose of the Joint Africa Institute review was to help the Bank refine its strategies and enhance its focus on the core Upcoming developments function of capacity development. The review found that in evaluation although the partnership among the Bank, the International Monetary Fund, and the Africa Development Bank had In FY06 WBIEG initiated several new strategic studies functioned largely as envisioned, it lacked sufficient emphasis to improve WBI’s internal performance metrics and on organizational and institutional capacity development. provide robust measures for assessing the impact of A second key issue was the relative lack of emphasis on client capacity development services aimed at achieving demand. These issues can be addressed when the partnership organizational and institutional changes. WBIEG will is renegotiated. also initiate in-depth studies of WBI’s impact.

Finally the study of joint client–staff learning found that joint Measuring organizational capacity. The research agenda approaches were more suited to some types of learning includes the identification of areas of organizational perfor- events than to others. For example, joint learning is effective mance and the development of indicators of organizational in policy discussions directly related to operational tasks functioning in those areas. The initial research is complete, (as opposed to highly technical topics); region- or country- and the development and piloting of questionnaires will specific vs. global or multisited events; and activities where commence in FY07. learning or working in teams is the desired outcome. Refined performance indicators. WBIEG is analyzing in depth the data and information available for use as WBIEG’s ongoing services indicators of WBI’s performance. The work includes a review of the indicators currently in use and the In FY06, WBIEG continued to provide training in monitoring and development of new indicators of outcomes and impact. evaluation. It also broadened its advisory and analytic services for monitoring and measuring results. This work included: In-depth study of WBI’s impact. WBIEG will initiate ● Analysis of the Bank’s ratings of the impact of investment a major study of WBI’s performance and impact in projects to identify variables associated with institutional Brazil, China, India, and other large countries with development and to outline lessons for mainstreaming which WBI has been intensively engaged. capacity development in the Bank’s lending operations. The objectives of the upcoming study are to assess ● Multivariate analysis of data from the Bank’s Quality WBI’s long-term impact and to distill lessons about Assurance Group to identify variables associated with how capacity development should be approached

world bank institute project ratings. WBIEG also provided recommendations in other client countries.

66 APPENDIX 1 Budget for FY05 and FY06 (US$ millions)

SOURCES OF FUNDS FY05 FY06

Administrative budget 62.9 61.0

Donor funding 15.6 12.4

Subtotal 78.5 73.4

Japan/World Bank Graduate Scholarship Fund 18.0 10.9

Total sources 96.5 84.3

USES OF FUNDS FY05 FY06

Staff learning 3.1 2.3

Client learning & capacity developement 75.4 71.2

Subtotal 78.5 73.4

Japan/World Bank Graduate Scholarship Fund 18.0 10.9

Total uses 96.5 84.3 2006 annual report

67 68 world bank institute

Vice President Frannie A. Léautier Management APPENDIX 2

Human Resources Yolanda Garay Director, Operations Rakesh Nangia (from September 1, 2006) Communications Sunetra Puri Wo rld Bank Institute- Or

Manager, Director, Director, Global Manager, Director, Director, Director, Sector & Staff Development Institute Learning Chief Regional Capacity Global Thematic Learning Network & Evaluation Administrative Coordination Development Programs Programs Trade (HRS) Multimedia Group Officer

Darius Michele Daniel Ruben Uri Dadush Vacant Monika Richard Kabir Mans de Nevers Kaufmann Lamdany Weber-Fahr Tobin Ahmed ganization Chart Sector Manager, Human Development & Education

Bruno Laporte Manager, Partnerships Sector Manager, GDLN Services Kenneth King Poverty Reduction & Multimedia Center Economic Management

Roumeen Islam

Sector Manager, Scholarships Environmentally & Administrator Learning Support Socially Sustainable Group Development Kamel Brahama

Konrad von Ritter

Sector Manager, Finance & Private Sector Development

Alexander Fleming APPENDIX 3 Thematic and Regional Distribution of Programs, FY04 FY06

FY04 FY05 FY06 OFFERINGS Client 907 900 812

Staff 109 25 16

Total 1016 925 828

PARTICIPANTS (thousands) Client 74.4 108.9 90.2

Staff 4.1 0.7 0.2

Total 78.5 109.6 90.4 TRAINING DAYS (thousands) Client 293.2 497.4 315.4

Staff 1.0 0.7 0.1

Total 294.2 498.1 315.5

CLIENT PARTICIPANTS BY REGION, FY06 TRAINING DAYS BY THEME, FY06 (percentage of total) (percentage of total)

Middle East Environment & & North Africa South Asia sustainable 5% 6% development 17% Other* Other* Latin America Worldwide Poverty reduction & Other* Other* & Caribbean 16% economic management 20% 31% Private Private Middle East and North Africa Sectors Environment and SustainableSectors Development Government Government Latin America and Caribbean OfficialPrivates Sectors Officials Europe & Central Asia Europe and Central Asia NGO 6% Governance, Africa NGOs NGOs East Asia andregulation, Pacific finance, Educators Gov Official Gov Official 27% Human & private sector East Asia development Africa development & Pacific 19% 33% Educators Investing in people Educators Investing in people 20% Worldwide and ideas: EDI/WBI and ideas: EDI/WBI Investing in people Investing in people as a Center for Global as a Center for Global Southand Asia ideas: EDI/WBI and ideas: EDI/WBI Knowledge & Knowledge &

as a Center for Global 2006 annual report as a Center for Global Learning Learning Knowledge & Knowledge & Learning Learning 1995-2001 69 1995-2001 1995-2001 1995-2001 APPENDIX 4 Focus Countries by Region, FY06 TOTAL 36 ECAE Bosnia and Herzegovina Kazakhstan Kyrgyz Republic Russian Federation Tajikistan Turkey LAC Turkmenistan Bolivia Uzbekistan Brazil MNA 4 Guatemala Egypt Mexico 8 Iran Morocco EAP Yemen China 4 Indonesia Lao PDR Philippines AFRR Thailand Burkina Faso Vietnam Chad MNA Ethiopia Arab Republic of Egypt Ghana Islamic Republic of Iran Kenya Morocco 6 Madagascar Republic of Yemen Nigeria SAR Afghanistan Senegal Bangladesh Tanzania India Pakistan 9 4 5Sri Lanka world bank institute

70 APPENDIX 5 Partners Organizations with which WBI had formal agreements in FY06

COUNTRY PARTNER(S)

Albania Center for Development and Democratization of Institutions (CDDI) Partners Albania - Center for Change and Conflict Management (PA) Argentina Center for Financial Stability (CFS) Austria Austria Development Agency

Azerbaijan Community Development Research, Training and Resource Center Save the Children Federation Bangladesh Bangladesh Bank Ministry of Health and Family Welfare (MOHFW) Belgium Directorate General for Development Cooperation (DGDC)

Benin Center for Training and Research on Population (CEFORP)

Brazil Federal University of Bahia (UFBA) Fundação Democrito Rocha (FDR) Ministry of Agrarian Development (MDA) - National Council for the Sustainable Development of Agriculture (CONDRAF) São Paulo Sugarcane Agroindustry Union (UNICA) Universidade Federal do Rio de Janeiro (UFRJ) Bulgaria National Association of Municipalities

Burkina Faso Centre de Formation Continue du Groupe EIER/ETSHER (CEFOC) Landnet West Africa Cambodia Economics and Finance Institute (EFI)

Cameroon University of Yaoundé II

Canada Canadian International Development Agency (CIDA) Halifax Regional Water Commission (HRWC) International Lawyers and Economists Against Poverty (ILEAP) Metropolis International Institute China China Health Economics Institute (HEI) Chinese Irrigation and Drainage Development Centre (CIDDC) Department of Science, Technology, Education and Rural Environment, Ministry of Agriculture (MOA) Ministry of Finance Ministry of Health National Development and Reform Commission State Council Leading Group Office of Poverty Alleviation and Development (LGOPR) Tsinghua University Costa Rica International Center for Sustainable Human Development (CIDH)

Côte d’Ivoire University of Cocody 2006 annual report Denmark Danish International Development Agency (DANIDA) 71 COUNTRY PARTNER(S) Egypt, Arab American University of Cairo (AUC) Republic of Egyptian Banking Institute Egyptian Center for Economic Studies (ECES) Ministry of Health and Population (MoHP) National Training Institute (NTI) Social Planning, Analysis and Administration Consultants - Human Empowerment Center (SPAAC/HEC) El Salvador Centro para la Promoción de la Micro y Pequeña Empresa en Centroamérica (CENPROMYPE),

Finland Ministry for Foreign Affairs

France Centre National d’Etudes Agronomiques des Régions Chaudes (CNEARC) L’Agence Française de Développement - Centre d’Etudes Financières, Economiques et Bancaires (AFD-CEFEB) L’Arc Latin Ministère des Affaires Etrangères Ministère de l’Agriculture et de la Pêche Georgia Georgia Institute of Public Affairs (GIPA)

Germany Capacity Building International, Germany (InWEnt)

Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ)

Ghana May Day Rural Project (MDRP) University of Ghana

Hungary Metropolitan Research Institute (MRI) Semmelweis University - Health Services Management Training Center

India Administrative Staff College of India (ASCI) Association of Indian Universities (AIU) Environmental Planning Collaborative (EPC) Indian Association of Medical Microbiologists (IAMM) Indian Institute of Management Indian Institute of Public Administration (IIPA) Institute of Social Sciences (ISS) National Disaster Coordinating Council (NDCC) The Energy and Resource Institute (TERI) World Food Program - India Country Office Yashwantrao Chavan Academy of Development Administration (YASHADA) Indonesia Faculty of Economics - University of Indonesia (FEUI) International Society for Improving Training Quality (isitQ) Persatuan Perusahaan Air Minum di Seluruh Indonesia (PERPAMSI) University of Surabaya (Ubaya) Iran, Islamic Hamyaran Iran NGO Resource Center Republic of Ireland Development Cooperation Ireland (DCI)

Italy Chamber of Commerce of Milan/Promos (CCMP) CittadinanzAttiva - Active Citizenship Network Ministry of Foreign Affairs Ministry for Innovation and Technologies Servizi Assicurativi Del Commercio Estero (SACE S.p.A) University of Roma Tre Japan Japan International Cooperation Agency (JICA) Keio University Ministry of Finance National Graduate Institute for Policy Studies (GRIPS) world bank institute University of Tsukuba Yokohama National University 72 COUNTRY PARTNER(S) Jordan Al-Urdun Al-Jadid Research Center (UJRC) Cities and Villages Development Bank (CVDB) - Ministry of Municipalities, Rural Affairs and Environment Young Entrepreneurs Association (YEA) Kenya African Economic Research Consortium (AERC) African Population Advisory Council (APAC) Retirement Benefits Authority of Kenya Korea, Korea Development Institute (KDI) Republic of Korea Development Institute School of Public Policy and Management Korea National Statistical Office Korean Institute of Public Finance Maeil Business Newspaper (MBN) Kuwait Arab Planning Institute (API)

Kyrgyz Republic Counterpart Sheriktesh Health Management Training Program of the Health Reform Department, Ministry of Health Hospital Association Secretariat of the National Council for Women, Family and Gender Development Lao People’s National Organization for the Study of Politics and Administration (NOSPA) Democratic Republic Lebanon American University of Beirut Institute of Finance in Lebanon Lebanese Center for Policy Studies (LCPS) Malaysia University Sains Malaysia (USM)

Mexico Cemex México, S.A. de C.V. Instituto Tecnológico y de Estudios Superiores de Monterrey (ITESM - Virtual University) The Netherlands AIESEC International Ministry of Foreign Affairs Nigeria Federal Ministry of Health of Nigeria - Centre for Health Systems Studies and Development

Norway Royal Ministry of Foreign Affairs

Philippines Asian Institute of Management (AIM)

Romania Romanian Federation of Local Authorities (FALR)

Russian All-Union Business Russia Federation Economics Education and Research Consortium (EERC) International Center for Social and Economic Research - Leontief Centre Russian Federation of Chamber of Commerce and Industry (RFCCI) Saudi Arabia Institute of Public Administration

Senegal Centre d’Etudes de Politique de Développement (CEPOD) Conseil National de Concertation des Ruraux (CNCR) Serbia and Montenegro Center for Democratic Culture (CDC)

South Africa Applied Fiscal Research Centre (AFReC) (Pty) Ltd. Graduate School of Business - University of Cape Town Southern African Regional Poverty Network (SARPN) The Center for Environmental Economics and Policy in Africa (CEEPA) - University of Pretoria Spain Ministry of Economy and Finance University of Granada Sri Lanka UVA Management Development Training Institute

Sweden Swedish International Development Cooperation Agency (Sida)

Switzerland Swiss Agency for Development and Cooperation (SDC)

Counterpart Tajikistan

Tajikistan 2006 annual report

Tanzania Commonwealth Regional Health Community (CRHC) Eastern and Southern African Management Institute (ESAMI) 73 COUNTRY PARTNER(S) Thailand National Economic and Social Development Board (NESDB) National Statistics Office (NSO) Togo Center for African Family Studies (CAFS)

Tunisia Center for Arab Women for Training and Research (CAWTAR)

Turkey Ministry of Interior - General Directorate of the Local Authorities School of Public Health Turkish Economic and Social Studies Foundation (TESEV) Turkish Economic Policy Research Foundation / Economic Policy Research Institute (TEPAV|EPRI) Uganda Makerere University

United Kingdom British Council Building Partnerships for Development in Water and Sanitation (BPDWS) Department for International Development (DfID) Oxford Management Development Limited (OMD) Tiri (The Governance Access-learning Network) Wilton Park United States Columbia University The Center for Science, Technology, and Society (CSTS) Duke University - Duke Center for International Development (DCID) Georgetown University (Centro de Estudios Latinoamericanos - Programa Colombia) Georgia State University (GSU) Harvard University Harvard University School of Public Health (HSPH) Merck and Co., Inc. Tech Museum of Innovation (TMI) United States Agency for International Development (USAID) United States Department of State Urban Land Institute (ULI) Wharton School, University of Pennsylvania William and Flora Hewlett Foundation Zicklin Center for Business Ethics Research Uzbekistan Business Women’s Association Center for Economic Research (CER) Vietnam South East Asian Water Utilities Network Institute (SEAWUN) Vietnamese Academy of Social Sciences (VASS) - Center for Analysis and Forecast (CAF) West Bank Center for Private Sector Development (CPSD) and Gaza Zimbabwe African Regional Intellectual Property Organization (ARIPO)

International Commonwealth Parliamentary Association Partners Development Gateway Foundation Economic Research Forum (ERF) for the Arab Countries, Iran and Turkey Forum of Federations (FoF) Global Development Network (GDN) International Development Law Organization (IDLO) International Food Policy Research Institute (IFPRI) Islamic Development Bank Joint Vienna Institute (JVI) Pan American Health Organization (PAHO) UNESCO - International Institute for Educational Planning (IIEP) United Cities and Local Governments (UCLG) United Nations Development Programme (UNDP) United Nations Economic and Social Commission for Western Asia (ESCWA) United Nations Economic Commission for Latin America and the Caribbean (ECLAC/CEPAL) United Nations Institute for Training and Research (UNITAR) World Health Organization (WHO) World Links Organization of Washington D.C. world bank institute

74 APPENDIX 6 Scholarships and Fellowships

THE JOINT JAPAN/WORLD BANK GRADUATE SCHOLARSHIP PROGRAM

The goal of the Joint Japan/World Bank Graduate Scholarship Program (JJ/WBGSP) is to create a commu- nity of highly qualified professionals in economic and social development in developing countries. Wholly sponsored by the government of Japan, JJ/WBGSP is the largest graduate degree program in the United Nations system. Now in its twentieth year, the program has received more than 50,000 applications and awarded 3,700 scholarships to mid-career professionals from developing countries to pursue graduate studies leading to master’s degrees in development-related fields.

Currently, the program has some 330 scholars studying around the world in Regular and Partnership segments. Graduates of the JJ/WBGSP Columbia University Program in Economic Policy Management, class of 2005 Regular program In collaboration with the African Capacity Building For the 2006/7 academic year, 98 Regular Program Foundation, JJ/WBGSP supports four programs in scholars representing 78 countries were selected from economic policy management in Africa: two francophone 3,379 applicants. Of the new scholars: programs (at Cocody University in Côte d’Ivoire and ● More than 42 percent are female. Yaoundé II University in Cameroon) and two anglophone ● 75 percent have humble backgrounds (parents with no programs (at Makerere University in Uganda and the more than a high school education). University of Ghana). Five additional partnership programs ● More than 45 percent are from Africa (Africans account- are ongoing at four Japanese universities: University of ed for 66 percent of applications). Tsukuba (policy management), Yokohama National ● More than 50 percent are from low-income countries University (two programs: infrastructure management under stress and WBI focus countries. and public policy and taxation), Keio University (tax policy ● More than 84 percent work in the public sector. and management), and the National Graduate Institute for Policy Studies (public finance). Major fields of study are economics (36 percent); environment (17 percent); and public health (16 percent). In the United States, Harvard University offers a program in international development, and Columbia University Partnership program conducts a program in economic policy management.

JJ/WBGSP supports 11 Partnership Programs leading Program finances to a master’s degree in universities in Africa, Japan, and the United States. These programs enable JJ/WBGSP was initiated by the government of Japan scholars to receive specialized training in key areas of in 1987 as part of its Policy and Human Resources Fund. development. During the academic year 2005/6, the Japan has contributed more than $160 million to JJ/ partnerships supported 120 scholars. WBGSP since its inception, showing the country’s strong commitment to capacity development in

developing countries. 2006 annual report

75 “About 90 people from Vietnam have received scholarships from JJ/WBGSP. Many of them are now in high positions in government, where they influence the development of the sectors in which they work. The JJ/WBGSP, which helped these people to become what they are today, is therefore very helpful.”

—(Mr.) Cao Duc Phat Minister for Agriculture and Rural Development, Vietnam

Impact The Robert S. McNamara The program has enhanced capacity in the developing Fellowships Program world in critical areas such as public management and (RSMFP) finance, infrastructure planning and management, urban and rural development, agriculture and water resources management, environment protection, and public health. RSMFP was established in 1982 with a $1 million The program is building a body of skilled development contribution from the World Bank and $1.8 million from practitioners who serve the economic and social the governments of Bangladesh, China, India, Kuwait, development of their countries and regions. Nigeria, Pakistan, Peru, and Yugoslavia. ● 87 percent of scholars surveyed in 2005 were back in their home countries. The program awarded some 250 fellowships to development ● Program alumni constitute a Who’s Who in the researchers and practitioners from all regions of the World developing world; many occupy senior positions, Bank for research or study on a wide variety of topics in including ministerial portfolios. development-related fields. In 2001, the program was ● Alumni comments in group discussions initiated on restructured into a master’s degree program in public the JJWBGSP Web site are overwhelmingly positive. policy at the Woodrow Wilson School of International and Public and Affairs, Princeton University. Scaling up activities

FY06 saw the launch of a new program to make better use of the knowledge acquired by JJ/WBGSP scholars. The program, which fosters a network of those scholars and other development stakeholders, held its first regional conference in May 2006 in Nairobi. A second conference followed immediately in Hanoi.

The conferences included presentations on development by the Japanese ambassador, the Japanese executive director to the World Bank, country directors, faculty from partner universities, and outstanding recent alumni. The conferences established a solid framework in which to sustain and share the knowledge fostered by the program, in part by forging links with World Bank country offices and Japan’s embassies. world bank institute

76 APPENDIX 7 Publications

DIASPORA NETWORKS AND THE INTERNATIONAL MIGRATION OF MANAGING THE IMPLEMENTATION SKILLS: HOW COUNTRIES CAN OF DEVELOPMENT PROJECTS: DRAW ON THEIR TALENT ABROAD A RESOURCE KIT ON CD-ROM FOR INSTRUCTORS AND Edited by Yevgeny Kuznetsov PRACTITIONERS

Diaspora networks link better-performing segments of home- The materials on this CD-ROM have been compiled as a resource country institutions with forward-looking segments of the diaspora. kit for instructors, practitioners, and students of project manage- But the interaction of expatriate talent with institutions in ment in developing and industrialized countries. The kit includes expatriates’ countries of origin has only begun to suggest the the following modules, which are based on the steps in the project development potential of diasporas. A central theme of this book implementation process and the tasks required of a project is the critical importance of home-country institutions designed to manager during the implementation of a development project: implement joint projects with entrepreneurial networks of diaspora 1. Understanding the project and project management professionals. The quality of such institutions varies widely: some 2. Structuring the project organization are extremely capable; others much less so. Properly designed and 3. Building the team staffed, such institutions can generate a virtuous cycle that 4. Analyzing the project context develops both home-country institutions, diaspora networks, and 5. Refining objectives, scope, and other project parameters the countries in which the diaspora has settled. The question of 6. Preparing the work breakdown structure, responsibility matrix, how to trigger and sustain such a virtuous cycle, turning brain and master summary schedule drain into brain gain, is a central concern of the book. 7. Planning and scheduling using the critical path method 8. Obtaining management approval and support 2006, 249 pages ISBN: 10: 0-8213-6647-5 9. Designing control and reporting systems SKU: 16647 10. Organizing procurement 11. Executing and controlling the work 12. Terminating the project.

Each module includes performance-based instructional objectives that are specific, measurable, and observable; module and session CITIES IN A GLOBALIZING WORLD: outlines with a timetable of activities; scripted lectures, including GOVERNANCE, PERFORMANCE, corresponding visuals; case studies, exercises, and solution sets; teaching notes; self-assessment questions; and selected readings. AND SUSTAINABILITY 2006, ISBN-10: 0-8213-6643-2 Edited by Frannie Léautier SKU: 16643

“In a world moving very rapidly on both urbanization and globalization, cities in the developing world face both serious challenges and attractive opportunities. They can reap the benefits of economic growth by creating an enabling investment climate: well-functioning markets, institutions that support sound governance and regulatory regimes, and public infrastructure and PROMOTING SOCIAL COHESION social services. At the same time they can create an environment THROUGH EDUCATION: CASE where their citizens are both included and empowered. And STUDIES AND TOOLS FOR USING because cities do not exist in isolation, urban policies and TEXTBOOKS AND CURRICULA programs must also be coordinated with national initiatives. Cities in a Globalizing World not only raises our awareness of issues that can only become still more pressing and still more Edited by Eluned Roberts-Schweitzer, Vincent critical to growth and equity in this century; it also provides Greaney, and Kreszentia Duer important and valuable analyses of options for public action.” —Sir Nicholas Stern, Head of Government Economic Service, In a world where students will have to co-exist with people different United Kingdom from themselves, sensitivity and openness to diversity—ethnic, religious, linguistic, and ability-related—are a core part of any good 2006, 144 pages ISBN: 0-8213-6553-3 education. Social Cohesion through Education provides case SKU: 16553 studies and tools to help educators, policymakers, and the development community improve the ways in which education

systems can promote tolerance and respect for diversity through 2006 annual report

77 improved management of existing inputs such as curriculum and textbook reform. The book address different issues in different REFORMING REGIONAL–LOCAL countries and regions, but the fundamental message is the same: the explicit and implicit messages about intergroup relations that FINANCE IN RUSSIA children receive in school shape the form and sensitivities of young minds with respect to other human beings. If education is to By Jorge Martinez-Vazquez, Andrey contribute to economic and social development, it is critical that we Timofeev, and Jameson Boex understand those messages and the means of their transmission.

2006, 168 pages ISBN: 0-8213-6465-0 The chief goal of this book is to assess the current state of regional– local fiscal relations and local self-government in Russia. The book SKU: 16465 provides a comprehensive assessment of the state of intergovernmen- tal fiscal relations in Russia, pinpointing where Russia stands in REDUCING POVERTY ON A developing fiscal federalism. By focusing mainly on regional–local GLOBAL SCALE: LEARNING AND finance, the book complements and in some ways updates the authors’ INNOVATING FOR DEVELOPMENT— 2001 work, Russia’s Transition to a New Federalism. The shift of focus FINDINGS FROM THE SHANGHAI from federal–regional relations reflects an evolution of policy in Russia. Reforming Regional–Local Finance in Russia also presents an GLOBAL LEARNING INITIATIVE analytical framework for thinking about federalism. Making up the framework are the “building blocks” of federalism: size and Edited by Blanca Moreno-Dodson structure of jurisdictions, expenditures, revenues, transfers, and borrowing. The exposition is not academically oriented but presents the essential issues in a practical manner, with detailed In 2003 the World Bank, in partnership with the Chinese discussions available in the appendices to individual chapters. The government, began a year-long global learning process that intensive application of the theory and practice of federalism to focused on worldwide efforts to reduce poverty. A series of case the Russian setting enables the authors to suggest options for studies, multicountry interactive videoconferences, online reforms based on international practices and to identify some dialogues, and field visits preceded a conference in Shanghai on dangers contained in pending policy proposals. May 25–27, 2004. Development lessons and experiences were shared and debated at this event by policymakers, politicians, 2006, 220 pages ISBN: 0-8213-6557-6 donors, academics, development practitioners, civil society SKU:16557 groups, and representatives from development institutions. The unprecedented knowledge exchange on worldwide poverty reduction efforts generated ample lessons on how to accelerate growth and reduce poverty.

Capturing the findings from the Shanghai Global Learning Initiative, Reducing Poverty on a Global Scale lays out for development practitioners the achievements in reducing poverty and the factors behind them. Each of the chapters extracts lessons JAPAN: MOVING TOWARD learned from case studies of different dimensions of poverty, A MORE ADVANCED focusing on the role of commitment and leadership, institutional innovation, learning and experimentation, and external catalysts. KNOWLEDGE ECONOMY Instead of recommending particular solutions or best practices, the book distills key findings from the strategically selected VOLUME 1, ASSESSMENT AND LESSONS LEARNED; examples and weaves them into a topical narrative. VOLUME 2, ADVANCED KNOWLEDGE CREATING A companion CD-ROM contains all of the case study summaries COMPANIES presented at the May 2004 Shanghai conference. Edited by Hirotaka Takeuchi and Tsutomu Shibata 2005, 288 pages ISBN: 0-8213-6362-X SKU: 16362 Why study Japan? This new World Bank report suggests that the Japanese experience offers many useful insights into our understanding of a knowledge-based economy, many of which are relevant to developing countries. Three main reasons for learning from Japan and its experience are highlighted in the book: PERSPECTIVES ON ● The tremendous speed and resilience Japanese industries have FISCAL FEDERALISM shown in catching up with the industrial world and overcoming the oil and yen shocks Edited by Richard M. Bird and ● The fact that Japan still has many strong leaders in some industries because of their advanced manufacturing processes Francois Vaillancourt ● The imbalance between the country’s strongest industries and companies and the weaker industries. The authors address a range of issues relating to intergovernmental finance and the provision and financing of local services—among The report consists of two volumes. The first deals with them budgeting and financial management, the institutional knowledge issues in line with the four-pillar framework of a framework for the conduct of intergovernmental relations, knowledge economy. The second provides case studies of appropriate methods of service delivery in metropolitan agglomera- knowledge creation and knowledge sharing at six high-performing tions and remote rural areas, local government enterprises, user companies. Both volumes draw implications of Japan’s postwar charges, property taxes, income and value-added taxes, natural experience for development policies in other countries. resource taxes, and local business taxes. Throughout, the authors draw on experience from Canada and other decentralized countries In analyzing Japan as a knowledge economy, the book and consider to varying extents the special problems facing Russia covers a wide range of sectoral issues in development, and other large transitional economies. among them the macroeconomic framework, education

world bank institute and skills training, the national innovation system, science 2006, 276 pages ISBN: 0-8213-6555-X and technology, information and communication technology, SKU: 16555 and infrastructure. This study combines economics and 78 business, allowing readers to grasp the scope of today’s THE KNOWLEDGE ECONOMY, knowledge economy. THE KAM METHODOLOGY AND The book was prepared by WBI’s Knowledge for WORLD BANK OPERATIONS Development Group, which assesses countries’ Derek H. C. Chen and Carl J. Dahlman preparedness to compete in the global knowledge economy. It is the result of research funded by the Japan 2006. 42 pages. Stock No. 37256 Policy and Human Resource Development Fund (PHRD), managed by the World Bank. KEEPING AN EYE ON SUBNATIONAL 2006, 178 pages ISBN: 0-8213-6672-6 GOVERNMENTS: INTERNAL CONTROL SKU: 16672 AND AUDIT AT LOCAL LEVELS Mustafa Baltaci and Serdar Yilmaz

2006. 31 pages. Stock No. 37257 To order these and other World Bank Institute (WBI) publications: Phone: 800-645-7247 TANZANIA IN THE KNOWLEDGE ECONOMY: 703-661-1580 FOSTERING INNOVATION, PRODUCTIVITY, Fax: 703-661-1501 E-mail: [email protected] AND TECHNOLOGICAL CHANGE Web: www.worldbank.org/publications Anuja Utz Mail: The World Bank P.O. Box 960 2006. 64 pages. Stock No. 37258 Herndon, VA 20172-0960 USA THE ROLE OF LEGISLATURES IN POVERTY REDUCTION: EXPERIENCE AND FUTURE DIRECTIONS Edited by Katrina Sharkey, Theodore Dreger, and Sabina Bhatia

2006. 21 pages. Stock No. 37259

ANALYZING SOCIAL CAPITAL IN CONTEXT: A GUIDE TO USING Working papers QUALITATIVE METHODS AND DATA Lee Nora Dudwick, Kathleen Kuehnast, Veronica Nyhan Jones, and Michael Woolcock THE ROLE OF PARLIAMENT IN GOVERNMENT 2006. 46 pages. Stock No. 37260 John K. Johnson DEMANDING GOOD GOVERNANCE: 2005. 23 pages. Stock No. 37251 A STOCKTAKING OF SOCIAL ACCOUNTABILITY INITIATIVES BY EXPLORING THE LINK BETWEEN PUBLIC SPENDING CIVIL SOCIETY IN ANGLOPHONE AFRICA AND POVERTY REDUCTION: LESSONS FROM THE 90s Mary McNeil and Takawira Mumvuma Vera Wilhelm and Ignacio Fiestas 2006. 109 pages. Stock No. 37261 2005. 42 pages. Stock No. 37252

BUDGET INSTITUTIONS AND FISCAL RESPONSIBILITY Carlos Santiso

2005. 44 pages. Stock No. 37253

THE ROLE OF PARLIAMENTS IN THE BUDGET PROCESS Edited by Riccardo Pelizzo, Rick Stapenhurst, and David Olson

2005. 44 pages. Stock No. 37254

STOCKTAKING OF SOCIAL ACCOUNTABILITY INITIATIVES IN THE ASIA AND PACIFIC REGION Dennis Arroyo and Karen Sirker 2006 annual report 2005. 45 pages. Stock No. 37255 79 CAPACITY DEVELOPMENT BRIEFS

Visit our Web site for more information or to download WBI’s Capacity Development Briefs. www.worldbank.org/capacity

September 2005. Issue No. 12 Where Capacity Is Not the Only Problem: Moving from Generic Capacity Building to Support for Issues-Based Change in Nigeria Christopher Pycroft, Richard Butterworth

October 2005. Issue No. 13 When Passionate Leadership Stimulates Enduring Change: A Transformational Capacity Development Anecdote from Uganda Nadim Matta, Patrice Murphy

December 2005. Issue No. 14 Applying a Capacity-Results Framework in Lao PDR and Other Pilot Countries Chirine Alameddine, Moira Hart-Poliquin

February 2006. Issue No. 15 Does Training Work? Re-Examining Donor-Sponsored Training Programs in Developing Countries Mark Nelson

May 2006. Issue No. 16 A Revolution in Capacity Development? Africans Ask Tough Questions Bathylle Missika-Wierzba, Mark Nelson

June 2006. Issue No. 17 The Capacity to Evaluate: Why Countries Need It Linda Morra-Imas, Ray C. Rist

DEVELOPMENT OUTREACH

is a flagship magazine in the field of global knowledge for development. It reflects the learning programs of the World Bank and presents a range of viewpoints by renowned authors and specialists worldwide. The magazine is designed to occupy a middle ground between the scholarly journal and the general interest magazine. Articles on complex topics are written in transparent language accessible to the general reader.

Visit our Web site at http://www.worldbank.org/devoutreach

photography Pages 8, 21, 47, 51, 55, 59, 80: Micheal Foley Pages 24, 25, 26, 27: Deborah Campos Pages 37, 39, 40, 57, 62: Richard Lord Page 56: Michel Setboun All other photos: World Bank staff and photo library Graphic Design Patricia Hord.Graphik Design

world bank institute Printed By Jarboe Printing 80 APPENDIX 5 Partners Organizations with which WBI had formal agreements in FY06

COUNTRY PARTNER(S)

Albania Center for Development and Democratization of Institutions (CDDI) Partners Albania - Center for Change and Conflict Management (PA) Argentina Center for Financial Stability (CFS) Austria Austria Development Agency

Azerbaijan Community Development Research, Training and Resource Center Save the Children Federation Bangladesh Bangladesh Bank Ministry of Health and Family Welfare (MOHFW) Belgium Directorate General for Development Cooperation (DGDC)

Benin Center for Training and Research on Population (CEFORP)

Brazil Federal University of Bahia (UFBA) Fundação Democrito Rocha (FDR) Ministry of Agrarian Development (MDA) - National Council for the Sustainable Development of Agriculture (CONDRAF) São Paulo Sugarcane Agroindustry Union (UNICA) Universidade Federal do Rio de Janeiro (UFRJ) Bulgaria National Association of Municipalities

Burkina Faso Centre de Formation Continue du Groupe EIER/ETSHER (CEFOC) Landnet West Africa Cambodia Economics and Finance Institute (EFI)

Cameroon University of Yaoundé II

Canada Canadian International Development Agency (CIDA) Halifax Regional Water Commission (HRWC) International Lawyers and Economists Against Poverty (ILEAP) Metropolis International Institute China China Health Economics Institute (HEI) Chinese Irrigation and Drainage Development Centre (CIDDC) Department of Science, Technology, Education and Rural Environment, Ministry of Agriculture (MOA) Ministry of Finance Ministry of Health National Development and Reform Commission State Council Leading Group Office of Poverty Alleviation and Development (LGOPR) Tsinghua University Costa Rica International Center for Sustainable Human Development (CIDH)

Côte d’Ivoire University of Cocody 2006 annual report Denmark Danish International Development Agency (DANIDA) 71 COUNTRY PARTNER(S) Egypt, Arab American University of Cairo (AUC) Republic of Egyptian Banking Institute Egyptian Center for Economic Studies (ECES) Ministry of Health and Population (MoHP) National Training Institute (NTI) Social Planning, Analysis and Administration Consultants - Human Empowerment Center (SPAAC/HEC) El Salvador Centro para la Promoción de la Micro y Pequeña Empresa en Centroamérica (CENPROMYPE),

Finland Ministry for Foreign Affairs

France Centre National d’Etudes Agronomiques des Régions Chaudes (CNEARC) L’Agence Française de Développement - Centre d’Etudes Financières, Economiques et Bancaires (AFD-CEFEB) L’Arc Latin Ministère des Affaires Etrangères Ministère de l’Agriculture et de la Pêche Georgia Georgia Institute of Public Affairs (GIPA)

Germany Capacity Building International, Germany (InWEnt)

Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ)

Ghana May Day Rural Project (MDRP) University of Ghana

Hungary Metropolitan Research Institute (MRI) Semmelweis University - Health Services Management Training Center

India Administrative Staff College of India (ASCI) Association of Indian Universities (AIU) Environmental Planning Collaborative (EPC) Indian Association of Medical Microbiologists (IAMM) Indian Institute of Management Indian Institute of Public Administration (IIPA) Institute of Social Sciences (ISS) National Disaster Coordinating Council (NDCC) The Energy and Resource Institute (TERI) World Food Program - India Country Office Yashwantrao Chavan Academy of Development Administration (YASHADA) Indonesia Faculty of Economics - University of Indonesia (FEUI) International Society for Improving Training Quality (isitQ) Persatuan Perusahaan Air Minum di Seluruh Indonesia (PERPAMSI) University of Surabaya (Ubaya) Iran, Islamic Hamyaran Iran NGO Resource Center Republic of Ireland Development Cooperation Ireland (DCI)

Italy Chamber of Commerce of Milan/Promos (CCMP) CittadinanzAttiva - Active Citizenship Network Ministry of Foreign Affairs Ministry for Innovation and Technologies Servizi Assicurativi Del Commercio Estero (SACE S.p.A) University of Roma Tre Japan Japan International Cooperation Agency (JICA) Keio University Ministry of Finance National Graduate Institute for Policy Studies (GRIPS) world bank institute University of Tsukuba Yokohama National University 72 COUNTRY PARTNER(S) Jordan Al-Urdun Al-Jadid Research Center (UJRC) Cities and Villages Development Bank (CVDB) - Ministry of Municipalities, Rural Affairs and Environment Young Entrepreneurs Association (YEA) Kenya African Economic Research Consortium (AERC) African Population Advisory Council (APAC) Retirement Benefits Authority of Kenya Korea, Korea Development Institute (KDI) Republic of Korea Development Institute School of Public Policy and Management Korea National Statistical Office Korean Institute of Public Finance Maeil Business Newspaper (MBN) Kuwait Arab Planning Institute (API)

Kyrgyz Republic Counterpart Sheriktesh Health Management Training Program of the Health Reform Department, Ministry of Health Hospital Association Secretariat of the National Council for Women, Family and Gender Development Lao People’s National Organization for the Study of Politics and Administration (NOSPA) Democratic Republic Lebanon American University of Beirut Institute of Finance in Lebanon Lebanese Center for Policy Studies (LCPS) Malaysia University Sains Malaysia (USM)

Mexico Cemex México, S.A. de C.V. Instituto Tecnológico y de Estudios Superiores de Monterrey (ITESM - Virtual University) The Netherlands AIESEC International Ministry of Foreign Affairs Nigeria Federal Ministry of Health of Nigeria - Centre for Health Systems Studies and Development

Norway Royal Ministry of Foreign Affairs

Philippines Asian Institute of Management (AIM)

Romania Romanian Federation of Local Authorities (FALR)

Russian All-Union Business Russia Federation Economics Education and Research Consortium (EERC) International Center for Social and Economic Research - Leontief Centre Russian Federation of Chamber of Commerce and Industry (RFCCI) Saudi Arabia Institute of Public Administration

Senegal Centre d’Etudes de Politique de Développement (CEPOD) Conseil National de Concertation des Ruraux (CNCR) Serbia and Montenegro Center for Democratic Culture (CDC)

South Africa Applied Fiscal Research Centre (AFReC) (Pty) Ltd. Graduate School of Business - University of Cape Town Southern African Regional Poverty Network (SARPN) The Center for Environmental Economics and Policy in Africa (CEEPA) - University of Pretoria Spain Ministry of Economy and Finance University of Granada Sri Lanka UVA Management Development Training Institute

Sweden Swedish International Development Cooperation Agency (Sida)

Switzerland Swiss Agency for Development and Cooperation (SDC)

Counterpart Tajikistan

Tajikistan 2006 annual report

Tanzania Commonwealth Regional Health Community (CRHC) Eastern and Southern African Management Institute (ESAMI) 73 COUNTRY PARTNER(S) Thailand National Economic and Social Development Board (NESDB) National Statistics Office (NSO) Togo Center for African Family Studies (CAFS)

Tunisia Center for Arab Women for Training and Research (CAWTAR)

Turkey Ministry of Interior - General Directorate of the Local Authorities School of Public Health Turkish Economic and Social Studies Foundation (TESEV) Turkish Economic Policy Research Foundation / Economic Policy Research Institute (TEPAV|EPRI) Uganda Makerere University

United Kingdom British Council Building Partnerships for Development in Water and Sanitation (BPDWS) Department for International Development (DfID) Oxford Management Development Limited (OMD) Tiri (The Governance Access-learning Network) Wilton Park United States Columbia University The Center for Science, Technology, and Society (CSTS) Duke University - Duke Center for International Development (DCID) Georgetown University (Centro de Estudios Latinoamericanos - Programa Colombia) Georgia State University (GSU) Harvard University Harvard University School of Public Health (HSPH) Merck and Co., Inc. Tech Museum of Innovation (TMI) United States Agency for International Development (USAID) United States Department of State Urban Land Institute (ULI) Wharton School, University of Pennsylvania William and Flora Hewlett Foundation Zicklin Center for Business Ethics Research Uzbekistan Business Women’s Association Center for Economic Research (CER) Vietnam South East Asian Water Utilities Network Institute (SEAWUN) Vietnamese Academy of Social Sciences (VASS) - Center for Analysis and Forecast (CAF) West Bank Center for Private Sector Development (CPSD) and Gaza Zimbabwe African Regional Intellectual Property Organization (ARIPO)

International Commonwealth Parliamentary Association Partners Development Gateway Foundation Economic Research Forum (ERF) for the Arab Countries, Iran and Turkey Forum of Federations (FoF) Global Development Network (GDN) International Development Law Organization (IDLO) International Food Policy Research Institute (IFPRI) Islamic Development Bank Joint Vienna Institute (JVI) Pan American Health Organization (PAHO) UNESCO - International Institute for Educational Planning (IIEP) United Cities and Local Governments (UCLG) United Nations Development Programme (UNDP) United Nations Economic and Social Commission for Western Asia (ESCWA) United Nations Economic Commission for Latin America and the Caribbean (ECLAC/CEPAL) United Nations Institute for Training and Research (UNITAR) World Health Organization (WHO) World Links Organization of Washington D.C. world bank institute

74 APPENDIX 6 Scholarships and Fellowships

THE JOINT JAPAN/WORLD BANK GRADUATE SCHOLARSHIP PROGRAM

The goal of the Joint Japan/World Bank Graduate Scholarship Program (JJ/WBGSP) is to create a commu- nity of highly qualified professionals in economic and social development in developing countries. Wholly sponsored by the government of Japan, JJ/WBGSP is the largest graduate degree program in the United Nations system. Now in its twentieth year, the program has received more than 50,000 applications and awarded 3,700 scholarships to mid-career professionals from developing countries to pursue graduate studies leading to master’s degrees in development-related fields.

Currently, the program has some 330 scholars studying around the world in Regular and Partnership segments. Graduates of the JJ/WBGSP Columbia University Program in Economic Policy Management, class of 2005 Regular program In collaboration with the African Capacity Building For the 2006/7 academic year, 98 Regular Program Foundation, JJ/WBGSP supports four programs in scholars representing 78 countries were selected from economic policy management in Africa: two francophone 3,379 applicants. Of the new scholars: programs (at Cocody University in Côte d’Ivoire and ● More than 42 percent are female. Yaoundé II University in Cameroon) and two anglophone ● 75 percent have humble backgrounds (parents with no programs (at Makerere University in Uganda and the more than a high school education). University of Ghana). Five additional partnership programs ● More than 45 percent are from Africa (Africans account- are ongoing at four Japanese universities: University of ed for 66 percent of applications). Tsukuba (policy management), Yokohama National ● More than 50 percent are from low-income countries University (two programs: infrastructure management under stress and WBI focus countries. and public policy and taxation), Keio University (tax policy ● More than 84 percent work in the public sector. and management), and the National Graduate Institute for Policy Studies (public finance). Major fields of study are economics (36 percent); environment (17 percent); and public health (16 percent). In the United States, Harvard University offers a program in international development, and Columbia University Partnership program conducts a program in economic policy management.

JJ/WBGSP supports 11 Partnership Programs leading Program finances to a master’s degree in universities in Africa, Japan, and the United States. These programs enable JJ/WBGSP was initiated by the government of Japan scholars to receive specialized training in key areas of in 1987 as part of its Policy and Human Resources Fund. development. During the academic year 2005/6, the Japan has contributed more than $160 million to JJ/ partnerships supported 120 scholars. WBGSP since its inception, showing the country’s strong commitment to capacity development in

developing countries. 2006 annual report

75 “About 90 people from Vietnam have received scholarships from JJ/WBGSP. Many of them are now in high positions in government, where they influence the development of the sectors in which they work. The JJ/WBGSP, which helped these people to become what they are today, is therefore very helpful.”

—(Mr.) Cao Duc Phat Minister for Agriculture and Rural Development, Vietnam

Impact The Robert S. McNamara The program has enhanced capacity in the developing Fellowships Program world in critical areas such as public management and (RSMFP) finance, infrastructure planning and management, urban and rural development, agriculture and water resources management, environment protection, and public health. RSMFP was established in 1982 with a $1 million The program is building a body of skilled development contribution from the World Bank and $1.8 million from practitioners who serve the economic and social the governments of Bangladesh, China, India, Kuwait, development of their countries and regions. Nigeria, Pakistan, Peru, and Yugoslavia. ● 87 percent of scholars surveyed in 2005 were back in their home countries. The program awarded some 250 fellowships to development ● Program alumni constitute a Who’s Who in the researchers and practitioners from all regions of the World developing world; many occupy senior positions, Bank for research or study on a wide variety of topics in including ministerial portfolios. development-related fields. In 2001, the program was ● Alumni comments in group discussions initiated on restructured into a master’s degree program in public the JJWBGSP Web site are overwhelmingly positive. policy at the Woodrow Wilson School of International and Public and Affairs, Princeton University. Scaling up activities

FY06 saw the launch of a new program to make better use of the knowledge acquired by JJ/WBGSP scholars. The program, which fosters a network of those scholars and other development stakeholders, held its first regional conference in May 2006 in Nairobi. A second conference followed immediately in Hanoi.

The conferences included presentations on development by the Japanese ambassador, the Japanese executive director to the World Bank, country directors, faculty from partner universities, and outstanding recent alumni. The conferences established a solid framework in which to sustain and share the knowledge fostered by the program, in part by forging links with World Bank country offices and Japan’s embassies. world bank institute

76 APPENDIX 7 Publications

DIASPORA NETWORKS AND THE INTERNATIONAL MIGRATION OF MANAGING THE IMPLEMENTATION SKILLS: HOW COUNTRIES CAN OF DEVELOPMENT PROJECTS: DRAW ON THEIR TALENT ABROAD A RESOURCE KIT ON CD-ROM FOR INSTRUCTORS AND Edited by Yevgeny Kuznetsov PRACTITIONERS

Diaspora networks link better-performing segments of home- The materials on this CD-ROM have been compiled as a resource country institutions with forward-looking segments of the diaspora. kit for instructors, practitioners, and students of project manage- But the interaction of expatriate talent with institutions in ment in developing and industrialized countries. The kit includes expatriates’ countries of origin has only begun to suggest the the following modules, which are based on the steps in the project development potential of diasporas. A central theme of this book implementation process and the tasks required of a project is the critical importance of home-country institutions designed to manager during the implementation of a development project: implement joint projects with entrepreneurial networks of diaspora 1. Understanding the project and project management professionals. The quality of such institutions varies widely: some 2. Structuring the project organization are extremely capable; others much less so. Properly designed and 3. Building the team staffed, such institutions can generate a virtuous cycle that 4. Analyzing the project context develops both home-country institutions, diaspora networks, and 5. Refining objectives, scope, and other project parameters the countries in which the diaspora has settled. The question of 6. Preparing the work breakdown structure, responsibility matrix, how to trigger and sustain such a virtuous cycle, turning brain and master summary schedule drain into brain gain, is a central concern of the book. 7. Planning and scheduling using the critical path method 8. Obtaining management approval and support 2006, 249 pages ISBN: 10: 0-8213-6647-5 9. Designing control and reporting systems SKU: 16647 10. Organizing procurement 11. Executing and controlling the work 12. Terminating the project.

Each module includes performance-based instructional objectives that are specific, measurable, and observable; module and session CITIES IN A GLOBALIZING WORLD: outlines with a timetable of activities; scripted lectures, including GOVERNANCE, PERFORMANCE, corresponding visuals; case studies, exercises, and solution sets; teaching notes; self-assessment questions; and selected readings. AND SUSTAINABILITY 2006, ISBN-10: 0-8213-6643-2 Edited by Frannie Léautier SKU: 16643

“In a world moving very rapidly on both urbanization and globalization, cities in the developing world face both serious challenges and attractive opportunities. They can reap the benefits of economic growth by creating an enabling investment climate: well-functioning markets, institutions that support sound governance and regulatory regimes, and public infrastructure and PROMOTING SOCIAL COHESION social services. At the same time they can create an environment THROUGH EDUCATION: CASE where their citizens are both included and empowered. And STUDIES AND TOOLS FOR USING because cities do not exist in isolation, urban policies and TEXTBOOKS AND CURRICULA programs must also be coordinated with national initiatives. Cities in a Globalizing World not only raises our awareness of issues that can only become still more pressing and still more Edited by Eluned Roberts-Schweitzer, Vincent critical to growth and equity in this century; it also provides Greaney, and Kreszentia Duer important and valuable analyses of options for public action.” —Sir Nicholas Stern, Head of Government Economic Service, In a world where students will have to co-exist with people different United Kingdom from themselves, sensitivity and openness to diversity—ethnic, religious, linguistic, and ability-related—are a core part of any good 2006, 144 pages ISBN: 0-8213-6553-3 education. Social Cohesion through Education provides case SKU: 16553 studies and tools to help educators, policymakers, and the development community improve the ways in which education

systems can promote tolerance and respect for diversity through 2006 annual report

77 improved management of existing inputs such as curriculum and textbook reform. The book address different issues in different REFORMING REGIONAL–LOCAL countries and regions, but the fundamental message is the same: the explicit and implicit messages about intergroup relations that FINANCE IN RUSSIA children receive in school shape the form and sensitivities of young minds with respect to other human beings. If education is to By Jorge Martinez-Vazquez, Andrey contribute to economic and social development, it is critical that we Timofeev, and Jameson Boex understand those messages and the means of their transmission.

2006, 168 pages ISBN: 0-8213-6465-0 The chief goal of this book is to assess the current state of regional– local fiscal relations and local self-government in Russia. The book SKU: 16465 provides a comprehensive assessment of the state of intergovernmen- tal fiscal relations in Russia, pinpointing where Russia stands in REDUCING POVERTY ON A developing fiscal federalism. By focusing mainly on regional–local GLOBAL SCALE: LEARNING AND finance, the book complements and in some ways updates the authors’ INNOVATING FOR DEVELOPMENT— 2001 work, Russia’s Transition to a New Federalism. The shift of focus FINDINGS FROM THE SHANGHAI from federal–regional relations reflects an evolution of policy in Russia. Reforming Regional–Local Finance in Russia also presents an GLOBAL LEARNING INITIATIVE analytical framework for thinking about federalism. Making up the framework are the “building blocks” of federalism: size and Edited by Blanca Moreno-Dodson structure of jurisdictions, expenditures, revenues, transfers, and borrowing. The exposition is not academically oriented but presents the essential issues in a practical manner, with detailed In 2003 the World Bank, in partnership with the Chinese discussions available in the appendices to individual chapters. The government, began a year-long global learning process that intensive application of the theory and practice of federalism to focused on worldwide efforts to reduce poverty. A series of case the Russian setting enables the authors to suggest options for studies, multicountry interactive videoconferences, online reforms based on international practices and to identify some dialogues, and field visits preceded a conference in Shanghai on dangers contained in pending policy proposals. May 25–27, 2004. Development lessons and experiences were shared and debated at this event by policymakers, politicians, 2006, 220 pages ISBN: 0-8213-6557-6 donors, academics, development practitioners, civil society SKU:16557 groups, and representatives from development institutions. The unprecedented knowledge exchange on worldwide poverty reduction efforts generated ample lessons on how to accelerate growth and reduce poverty.

Capturing the findings from the Shanghai Global Learning Initiative, Reducing Poverty on a Global Scale lays out for development practitioners the achievements in reducing poverty and the factors behind them. Each of the chapters extracts lessons JAPAN: MOVING TOWARD learned from case studies of different dimensions of poverty, A MORE ADVANCED focusing on the role of commitment and leadership, institutional innovation, learning and experimentation, and external catalysts. KNOWLEDGE ECONOMY Instead of recommending particular solutions or best practices, the book distills key findings from the strategically selected VOLUME 1, ASSESSMENT AND LESSONS LEARNED; examples and weaves them into a topical narrative. VOLUME 2, ADVANCED KNOWLEDGE CREATING A companion CD-ROM contains all of the case study summaries COMPANIES presented at the May 2004 Shanghai conference. Edited by Hirotaka Takeuchi and Tsutomu Shibata 2005, 288 pages ISBN: 0-8213-6362-X SKU: 16362 Why study Japan? This new World Bank report suggests that the Japanese experience offers many useful insights into our understanding of a knowledge-based economy, many of which are relevant to developing countries. Three main reasons for learning from Japan and its experience are highlighted in the book: PERSPECTIVES ON ● The tremendous speed and resilience Japanese industries have FISCAL FEDERALISM shown in catching up with the industrial world and overcoming the oil and yen shocks Edited by Richard M. Bird and ● The fact that Japan still has many strong leaders in some industries because of their advanced manufacturing processes Francois Vaillancourt ● The imbalance between the country’s strongest industries and companies and the weaker industries. The authors address a range of issues relating to intergovernmental finance and the provision and financing of local services—among The report consists of two volumes. The first deals with them budgeting and financial management, the institutional knowledge issues in line with the four-pillar framework of a framework for the conduct of intergovernmental relations, knowledge economy. The second provides case studies of appropriate methods of service delivery in metropolitan agglomera- knowledge creation and knowledge sharing at six high-performing tions and remote rural areas, local government enterprises, user companies. Both volumes draw implications of Japan’s postwar charges, property taxes, income and value-added taxes, natural experience for development policies in other countries. resource taxes, and local business taxes. Throughout, the authors draw on experience from Canada and other decentralized countries In analyzing Japan as a knowledge economy, the book and consider to varying extents the special problems facing Russia covers a wide range of sectoral issues in development, and other large transitional economies. among them the macroeconomic framework, education

world bank institute and skills training, the national innovation system, science 2006, 276 pages ISBN: 0-8213-6555-X and technology, information and communication technology, SKU: 16555 and infrastructure. This study combines economics and 78 business, allowing readers to grasp the scope of today’s THE KNOWLEDGE ECONOMY, knowledge economy. THE KAM METHODOLOGY AND The book was prepared by WBI’s Knowledge for WORLD BANK OPERATIONS Development Group, which assesses countries’ Derek H. C. Chen and Carl J. Dahlman preparedness to compete in the global knowledge economy. It is the result of research funded by the Japan 2006. 42 pages. Stock No. 37256 Policy and Human Resource Development Fund (PHRD), managed by the World Bank. KEEPING AN EYE ON SUBNATIONAL 2006, 178 pages ISBN: 0-8213-6672-6 GOVERNMENTS: INTERNAL CONTROL SKU: 16672 AND AUDIT AT LOCAL LEVELS Mustafa Baltaci and Serdar Yilmaz

2006. 31 pages. Stock No. 37257 To order these and other World Bank Institute (WBI) publications: Phone: 800-645-7247 TANZANIA IN THE KNOWLEDGE ECONOMY: 703-661-1580 FOSTERING INNOVATION, PRODUCTIVITY, Fax: 703-661-1501 E-mail: [email protected] AND TECHNOLOGICAL CHANGE Web: www.worldbank.org/publications Anuja Utz Mail: The World Bank P.O. Box 960 2006. 64 pages. Stock No. 37258 Herndon, VA 20172-0960 USA THE ROLE OF LEGISLATURES IN POVERTY REDUCTION: EXPERIENCE AND FUTURE DIRECTIONS Edited by Katrina Sharkey, Theodore Dreger, and Sabina Bhatia

2006. 21 pages. Stock No. 37259

ANALYZING SOCIAL CAPITAL IN CONTEXT: A GUIDE TO USING Working papers QUALITATIVE METHODS AND DATA Lee Nora Dudwick, Kathleen Kuehnast, Veronica Nyhan Jones, and Michael Woolcock THE ROLE OF PARLIAMENT IN GOVERNMENT 2006. 46 pages. Stock No. 37260 John K. Johnson DEMANDING GOOD GOVERNANCE: 2005. 23 pages. Stock No. 37251 A STOCKTAKING OF SOCIAL ACCOUNTABILITY INITIATIVES BY EXPLORING THE LINK BETWEEN PUBLIC SPENDING CIVIL SOCIETY IN ANGLOPHONE AFRICA AND POVERTY REDUCTION: LESSONS FROM THE 90s Mary McNeil and Takawira Mumvuma Vera Wilhelm and Ignacio Fiestas 2006. 109 pages. Stock No. 37261 2005. 42 pages. Stock No. 37252

BUDGET INSTITUTIONS AND FISCAL RESPONSIBILITY Carlos Santiso

2005. 44 pages. Stock No. 37253

THE ROLE OF PARLIAMENTS IN THE BUDGET PROCESS Edited by Riccardo Pelizzo, Rick Stapenhurst, and David Olson

2005. 44 pages. Stock No. 37254

STOCKTAKING OF SOCIAL ACCOUNTABILITY INITIATIVES IN THE ASIA AND PACIFIC REGION Dennis Arroyo and Karen Sirker 2006 annual report 2005. 45 pages. Stock No. 37255 79 CAPACITY DEVELOPMENT BRIEFS

Visit our Web site for more information or to download WBI’s Capacity Development Briefs. www.worldbank.org/capacity

September 2005. Issue No. 12 Where Capacity Is Not the Only Problem: Moving from Generic Capacity Building to Support for Issues-Based Change in Nigeria Christopher Pycroft, Richard Butterworth

October 2005. Issue No. 13 When Passionate Leadership Stimulates Enduring Change: A Transformational Capacity Development Anecdote from Uganda Nadim Matta, Patrice Murphy

December 2005. Issue No. 14 Applying a Capacity-Results Framework in Lao PDR and Other Pilot Countries Chirine Alameddine, Moira Hart-Poliquin

February 2006. Issue No. 15 Does Training Work? Re-Examining Donor-Sponsored Training Programs in Developing Countries Mark Nelson

May 2006. Issue No. 16 A Revolution in Capacity Development? Africans Ask Tough Questions Bathylle Missika-Wierzba, Mark Nelson

June 2006. Issue No. 17 The Capacity to Evaluate: Why Countries Need It Linda Morra-Imas, Ray C. Rist

DEVELOPMENT OUTREACH

is a flagship magazine in the field of global knowledge for development. It reflects the learning programs of the World Bank and presents a range of viewpoints by renowned authors and specialists worldwide. The magazine is designed to occupy a middle ground between the scholarly journal and the general interest magazine. Articles on complex topics are written in transparent language accessible to the general reader.

Visit our Web site at http://www.worldbank.org/devoutreach

photography Pages 8, 21, 47, 51, 55, 59, 80: Micheal Foley Pages 24, 25, 26, 27: Deborah Campos Pages 37, 39, 40, 57, 62: Richard Lord Page 56: Michel Setboun All other photos: World Bank staff and photo library Graphic Design Patricia Hord.Graphik Design

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