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World Bank Document 31105 Public Disclosure Authorized 'v -,-nv-,- --_and the World Bank Progress in Fiscal 1999 Public Disclosure Authorized Public Disclosure Authorized A WB Public Disclosure Authorized (S) HE WORLD BANK Poverty Reduction and the World Bank Progress in Fiscal 1999 The World Bank Washington, D.C. Copyright © 2000 The International Bank for Reconstruction and Development/THE WORLD BANK 1818 H Street, N.W Washington, D.C. 20433, U.S.A. All rights reserved Manufactured in the United States of America First printing November 2000 1 23404030201 00 The findings, interpretations, and conclusions expressed in this paper are entirely those of the author(s) and should not be attributed in any manner to the World Bank, to its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent. The World Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The boundaries, colors, denominations, and other information shown on any map in this volume do not imply on the part of the World Bank Group any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries. The material in this publication is copyrighted. The World Bank encourages dissemination of its work and will normally grant permission promptly. Permission to photocopy items for internal or personal use, for the internal or personal use of specific clients, or for educational classroom use, is granted by the World Bank, provided that the appropriate fee is paid directly to Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, U.S.A., telephone 978-750-8400, fax 978-750-4470. Please contact Copyright Clearance Center prior to photocopying items. For permission to reprint individual articles or chapters, please fax your request with complete information to the Republication Department, Copyright Clearance Center, fax 978-750-4470. All other queries on rights and licenses should be addressed to the World Bank at the address above or faxed to 202-522-2422. Cover photo ""Children in Dolpo, Nepal" from Frederik J. Van Bolhuis. ISBN: 0-8213-4707-1 Library of Congress Cataloging-in-Publication Data has been applied for. Contents Acknowledgments vii Abbreviations and Acronyms viii Executive Summary 1 Trends in Poverty Over Time 3 Global trends in income poverty 3 Prospects for poverty reduction 3 Social indicators for the poor 11 Education outcomes 11 Health outcomes and access to health care 13 AIDS 13 What the poor say 14 2 World Bank Activities in Fiscal 1999 17 Country Assistance Strategies 17 Poverty reduction as overall goal of Country Assistance Strategies 18 Use of time-bound performance benchmarks 18 Poverty diagnosis 19 Poverty reduction strategy and its formulation 20 Impact of past assistance programs 20 Poverty analysis 21 Country-level poverty monitoring 25 Project impact evaluation 26 Poverty-focused lending 28 Program of Targeted Interventions 29 Poverty-focused adjustment operations 30 Sharing global knowledge 31 iii iv POVERTY REDUCTION AND THE WORLD BANK: PROGRESS IN FISCAL 1999 3 Achieving Faster Poverty Reduction: Elements of a Program of Action 35 A program of action to help low-income countries fight poverty more effectively 36 Principles underlying the approach 36 Linking debt relief and concessional assistance to poverty reduction strategies 37 Debt relief 38 Concessional assistance from the IMF under the Poverty Reduction and Growth Facility 38 Concessional assistance from IDA 38 Strengthening the link between poverty diagnosis and strategies 39 Changes in the way we work 39 How is the process moving forward? 40 Initiatives to address constraints at the global level 41 Improving the global environment 41 Promoting global public goods 42 A program of action to empower communities 42 Collecting, sharing, and disseminating knowledge and building capacity 43 World Development Report 2000/2001 43 The Poverty Reduction Strategies Sourcebook 43 Sector Strategies 44 Conclusion 45 Annexes 47 A. Summaries of Completed Poverty Assessments, Fiscal 1999 48 Algeria 49 Armenia 56 Bulgaria 60 Burundi 66 Georgia 69 Haiti 73 Kyrgyz Republic 76 Macedonia, FYR 79 Nepal 88 Panama 90 Peru 97 Russia 101 B. Poverty Assessments, Completed and Scheduled, Fiscal 1989-2000 104 C. Poverty Assessments, Completed and Scheduled (By Country), Fiscal 1989-2000 105 D. Poverty Assessments Completed, Fiscal 1989-1999 106 E. Program of Targeted Interventions, Fiscal 1999 109 F. Poverty-Focused SALS and SECALs, Fiscal 1999 136 G. Poverty-Focused ERLs, Fiscal 1999 153 H. Annual Lending to Selected Sectors, Fiscal 1999 155 I. Household Survey Availability by Region 158 Bibliography 165 Tables 1.1. Population living on less than $1 a day and headcount index in developing and transition economies, selected years, 1987-98 5 CONTENTS v 1.2. Population living on less than $2 a day and headcount index in developing and transition economies, selected years, 1987-98 5 1.3. Projected growth rates in real per capita private consumption and changes in Gini coefficients for 1999-2008, under scenarios of slow growth and rising inequality (scenario A) and inclusive growth (scenario B) 6 1.4. Number of people living on less than $1 a day and headcount index in developing and transition economies, under scenarios of slow growth and rising inequality (scenario A) and inclusive growth (scenario B), 1998 and 2008 7 1.5. Number of people living on less than $2 a day and headcount index in developing and transition economies, under scenarios of slow growth and rising inequality (scenario A) and inclusive growth (scenario B), 1998 and 2008 8 1.6. Estimated and projected population, 1998 and 2008 8 1.7. Share of poor and rich children ages 6-14 in school 12 1.8. Percentage of children in school 12 1.9. Under-5 mortality rates (deaths per 1,000 live births) in four countries 13 1.10. Percentage of the rural and urban ill population seeking treatment 14 2.1. Evaluation of CASs based on poverty focus, old criteria, fiscal 1996 to fiscal 1998 18 2.2. Evaluation of CASs based on poverty focus, new criteria, fiscal 1998 and fiscal 1999 18 2.3. Examples of quantifiable and time-bound progress benchmarks in fiscal 1999 CAS 19 2.4. Data availability 25 2.5. Data availability by region 26 2.6. Fiscal 1998 and 1999 investment projects with either good evaluation plans or the potential for good evaluation (share of lending) 27 2.7. Fiscal 1998 and 1999 investment projects with either good evaluation plans or the potential for good evaluation (share of projects) 28 2.8. Number and amount of lending for PTI projects, fiscal 1992-99 29 2.9. Number and amount of lending for PTI projects, IDA countries only, fiscal 1992-99 29 2.10. Number and amount of lending for poverty-focused adjustment operations, fiscal 1992-99 30 2.11. Number and amount of lending for poverty-focused adjustment operations, IDA countries only, fiscal 1992-99 30 2.12 World Development Report conferencesand workshops, 1998-99 31 E-1. Program of Targeted Interventions (PTIs), fiscal 1992-99 110 E-2. Program of Targeted Interventions (PTIs) by sector, fiscal 1992-1999 115 E-3. Program of Targeted Interventions (PTIs) lending by region, fiscal 1999 115 E-4. Program of Targeted Interventions, fiscal 1999 116 F-1. Poverty-focused adjustment operations, fiscal 1999 136 F-2. Poverty-focused components of adjustment operations, fiscal 1999 140 F-3. Poverty-focused adjustment lending, fiscal 1992-1999 141 F-4. Poverty-focused SALs and SECALs, fiscal 1999 142 G- 1. Poverty-focused ERL lending, fiscal 1992-1999 153 G-2. Poverty-focused ERLs, fiscal 1999 154 H-1. Average lending to selected sectors, fiscal 1982-1999 156 H-2. Annual lending to selected sectors, fiscal 1992-1999 157 Boxes 1.1. Details on the methodology for the global income poverty estimates 4 1.2. Technical assumptions underlying the poverty projections for 2008 6 1.3. Can the international development target for reducing income poverty be achieved? 10 1.4. Combining methods to assess the impact of the crisis in Indonesia 15 2.1. Poverty issues in the Europe and Central Asia Region 22 vi POVERTY REDUCTION AND THE WORLD BANK: PROGRESS IN FISCAL 1999 2.2. Governance and poverty 23 3.1. Development of the Bank's strategy on poverty reduction 35 3.2. Principles underlying the Comprehensive Development Framework approach and country poverty reduction strategies 37 3.3. Proposed guidelines for poverty diagnoses underpinning PRSPs 39 3.4. Themes of the World Development Report 2000/2001 43 Figures 1.1. Number and share of people living below $1 a day in developing and transition economies, 1987, 1998, and 2008 9 1.2. Poor-rich inequalities in access to different types of health care 14 2.1. Distribution of fiscal 1998-99 projects by category of evaluation 27 H-1. Trends in lending for human capital development, fiscal 1982-1999 155 Acknowledgments This report was prepared by Giovanna Prennushi under the Poverty Reduction Board, and others: Sadiq Ahmed, the direction of Michael Walton, Director, Poverty Re- Harold Alderman, Antonella Bassani, Yonas Biru, Rui duction Group, and the guidance of Masood Ahmed, Coutinho, Lucia Fort, Jesko Hentschel, Norman Hicks, Vice-President, Poverty Reduction and Economic Man- Christine Jones, Christine Fallert Kessides, Valerie Kozel, agement Network. Simone Cecchini, Gloria Rubio, and Ruben Lamdany, Pierre Landell-Mills, Sarwar Lateef, Radha Seshagiri provided invaluable assistance. Chapter Tamar Manuelyan Atinc, Pilar Maisterra, Karen Mason, 1 relies on work by Shaohua Chen and Martin Ravallion Pradeep Mitra, Marisela Montoliu Munoz, Mustapha on global poverty and by the Prospects Group (all in Nabli, Amy Osborne, Tatiana Proskuryakova, Martin DEC) on growth prospects; Davidson Gwatkin, Adam Ravallion, Jo Ritzen, Marcelo Selowsky,Eric V.
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