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Addressing the Challenges of Globalization an Independent Evaluation of the World Bank’S Approach to Global Programs

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Addressing the Challenges of Globalization an Independent Evaluation of the World Bank’S Approach to Global Programs WORLD BANK OPERATIONS EVALUATION DEPARTMENT Addressing the Challenges of Globalization An Independent Evaluation of the World Bank’s Approach to Global Programs 2004 The World Bank http://www.worldbank.org/oed Washington, D.C. © 2004 The International Bank for Reconstruction and Development / The World Bank 1818 H Street, NW Washington, DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org E-mail: [email protected] All rights reserved Manufactured in the United States of America First edition December 2004 The findings, interpretations, and conclusions expressed here are those of the author(s) and do not necessarily reflect the views of the Board of Executive Directors of the World Bank or the governments they represent. The World Bank cannot guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in the work do not imply on the part of the World Bank any judgment of the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The World Bank encourages dissemination of its work and will normally grant permission promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA, telephone 978-750-8400, fax 978-750-4470, www.copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, World Bank, 1818 H Street NW, Washington, DC 20433, USA, fax 202-522-2422, e-mail [email protected]. Cover photo courtesy of the World Bank Photo Library. ISBN 0-8213-6065-5 e-ISBN 0-8213-6066-3 Library of Congress Cataloging-in-Publication data have been applied for. World Bank InfoShop Operations Evaluation Department E-mail: [email protected] Knowledge Programs and Evaluation Capacity Telephone: 202-458-5454 Development (OEDKE) Facsimile: 202-522-1500 E-mail: [email protected] Telephone: 202-458-4497 Facsimile: 202-522-3125 Printed on Recycled Paper Contents vii Acknowledgments xi Foreword, Prólogo, Avant-propos xv Preface, Prefacio, Préface xxi Executive Summary xxxi Résumen ejecutivo xliii Résumé analytique lv List of Case Study Programs lvii Abbreviations and Acronyms 11Introduction and Context: Global Challenges and the Need for Collective Action 3 Issues and Trends in Global Programs 92Overview of the Case Study Programs 11 Program Objectives 15 Governance and Management 18 The Bank’s Roles 21 3 Program Relevance to Global Challenges, Bank Priorities, and Country Priorities 22 Evidence of International Consensus 27 Consistency with the Bank’s Sector Strategies 28 Consistency with the Subsidiarity Principle and the Bank’s Strategic Foci for Global Programs 30 Conclusions 33 4 Striving for Results: Assessing the Outcomes and Impacts of Global Programs 34 Quality of Monitoring and Evaluation Activities 41 Links Between Global Programs and Country Operations 45 Conclusions 53 5 Governance, Management, Partnerships, and Participation 53 Governance Functions, Principles, and Models 58 Clarity of Roles and Responsibilities iii ADDRESSING THE CHALLENGES OF GLOBALIZATION 60 Partnering with Developing Countries, Civil Society, and the Private Sector 65 Overall Assessment and Lessons 67 6 Global Programs Need Global Strategy 68 Funding Models of Global Programs That Combine the DGF, Trust Funds, and Bank Budget, Need Greater Clarity 69 Inconsistent Application of DGF Funding Rules Causes Confusion and Poses Reputational Risks 72 Bank-Administered Trust Funds for Global Programs Could Be Deployed More Strategically 73 7 World Bank Performance in Global Programs 74 Comparative Advantage 74 Global-Country Links 77 Oversight 80 Exit Strategy 83 8 Findings and Recommendations 83 OED Findings 88 OED Recommendations 91 Annexes 93 A: Previous OED Recommendations in Relation to Global Programs 97 B: Progress in Implementing the Phase 1 Recommendations Relating to Strategic and Programmatic Management 101 C: Evaluation Framework for Phase 2 Report and 26 Case Studies 109 D: Suggested Appraisal Template for Global Programs 113 E: OED’s Summary of the Known Outcomes and Impacts of Case Study Global Programs 127 F: Source Material 129 G: People Consulted 151 H: Case Study Summary Information 241 I: Management Response 247 J: Chairman’s Summary: Committee on Development Effectiveness (CODE) 251 Endnotes 263 References Boxes 2 1.1 Definition and Management of Global Programs by the World Bank 3 1.2 What Is the World Bank’s Comparative Advantage with Respect to Global Programs? 5 1.3 Global Public Goods, Merit Goods, and the Logic of Global Collective Action 12 2.1 Subsidiarity: Who Does What 14 2.2 Both “Approaches” and “Standards” Raise Practical Issues: The Devil Is in the Details 25 3.1 AIDS Programs Face Continuing Implementation Challenges 35 4.1 UNAIDS-Funded and Bank-Administered Monitoring and Evaluation of HIV/AIDS Programs Face the Challenge of Donor Coordination 36 4.2 To Deliver Global Public Goods of Benefit to the Poor, Global Programs Need Analytical Foundations with a Results-Based Orientation iv CONTENTS 37 4.3 Key Terms in Results-Based Management and Evaluation 38 4.4 Partners in Poverty-Focused CGAP Disagree on Need to Verify Program Impact on the Poor 39 4.5 Impacts of Global Agricultural and Health Research 55 5.1 The Two Largest Programs Show the Roots of Diversity and Complexity 56 5.2 What Are Partnerships? Who Are Members and Partners? 56 5.3 Shareholder and Stakeholder Models 70 6.1 The DGF Has Had Difficulty Applying Its Selectivity Criteria to the Bank’s Global Programs 75 7.1 The Effectiveness of Bank Cosponsorship as a Governance Tool Is Underexplored Tables 7 1.1 Management Actions Following OED’s Phase 1 Report 10 2.1 Environment and Agriculture Are the Largest Case Study Programs 13 2.2 Most Programs Primarily Address National Public Goods or Capacity 16 2.3 Governance and Management Arrangements Are Diverse 17 2.4 Unlike Programs Housed outside the Bank, Those Housed inside the Bank Tend to Be Chaired by the Bank 19 2.5 World Bank Plays Multiple Roles in Global Programs 20 2.6 Many Programs Contribute Financial Resources That Supplement the Bank’s Administrative Budget 23 3.1 Genesis Is One Indicator of International Consensus for a Program 34 4.1 Most Recent Program-Level Evaluations 42 4.2 The Bank Has Difficulty Linking Global Programs with Country Operations Where Bank Staff Are Not Implementing Global Program Activities 48 4.3 Programs Financing Investments Have More Known Benefits to Developing Countries 57 5.1 Most Programs Now Involve Stakeholders beyond Donors on Their Governing and Executive Bodies 68 6.1 Disconnects Between Program Objectives and Their Funding Arrangements Create Problems 71 6.2 Eight of 18 DGF-Supported Programs Violate DGF’s 15 Percent Guideline in FY04, and Windows 1 and 2 Need to Be Revisited 78 7.1 Bank Oversight of Case Study Programs, by Governance Model Figures 6 1.1 Official Development Assistance Has Fluctuated, but Not Grown, since 1990 10 2.1 Age of Case Study Programs 11 2.2 The Programs Are Engaged in a Wide Range of Activities 26 3.1 Donor Participation Varies in the Case Study Programs 41 4.1 Overall OED Assessment of Monitoring and Evaluation 45 4.2 New Commitments to HIV/AIDS and Other Communicable Diseases Have Grown Rapidly 66 5.1 Overall OED Assessment of Governance and Management 88 8.1 Overall OED Assessment of Current Consistency of Case Study Programs with the Development Committee Criteria v Acknowledgments This report was written by Uma Lele and Chris Vijay L. Kelkar, Cyrus D.R. Rustomjee, Rosemary Gerrard and builds on case-study analyses by Stevenson , and J. de Beaufort Wijnholds. the OED Global Team. The Team included Man- The team also benefited from the information mohan Agarwal, Yusuf Ahmad, Caroline Bahnson, and insight provided by Managing Directors Jef- Edward Bresnyan, Tomas Caspellan, Jozefina Cu- frey Goldstein, Mamphela Ramphele, Sven Sand- tura, Ramesh Govindaraj, Maisha Hyman, Jef- strom and Shengman Zhang; from Senior Vice frey Jordan, Kristina Kavaliunas, Lauren Kelly, Presidents Francois J. Bourguignon, Jean Louis Yianni Konstantopoulos, Kavita Mathur, Karin Sarbib, and Nicholas Stern; from the Vice Pres- Perkins, Saeed Rana, Naveen Sarna, Kirsten idents in charge of Operations, Networks, and Ex- Spainhower, David Spielman, and Rod Stubina. ternal Relations, including James Adams, Ian The report benefited from the editorial contri- Goldin, Ian Johnson, Motoo Kusakabe, Geoffrey butions of Caroline McEuen, Brian Fitzpatrick, Lamb, Frannie Leautier, Gobind Nankani, Jozef William Hurlbut, and Rachel Weaving. Ritzen, Nemat Shafik, and Anil Sood; and from The OED Team would like to acknowledge the the Director of the Quality Assessment Group, valuable contributions of OED management and Prem Garg. colleagues—Martha Ainsworth, Rema Balasun- The OED Team thanks the following Country daram, Lily Chu, Laurie Effron, John Eriksson, Directors: Michael F. Carter, Mats Karlsson, Ed- Alice Galenson, Madhur Gautam, Roy Gilbert, ward Lim, Andrew Steer, and Vinod Thomas. We Patrick Grasso, Catherine Gwin, Andres Lieben- also thank numerous Bank staff from many pro- thal, Fernando Manibog, Ridley Nelson, Keith grams and units, including the Global Programs Pitman, and Yvonne Tsikata—to the earlier drafts and Partnership Group and the DGF Secre- of this report and to the case studies. tariat: Paul Hubbard, Jane Kirby-Zaki, Sophia The authors and contributors also appreciate Drewnowski, Judy Lu, Randall Purcell, and Anju the perspectives and inputs from World Bank Sharma; and the Tr ust Fund Operations and Group Executive Directors Tanwir Ali Agha, Jaime Tr ust Fund Quality Assurance and Compliance Alvarez, Yahya Alyahya, Gino Alzetta, Carole Unit: Arif Zulfiqar, Dale Hill, Paul Cadario, Diana Brookins, Alieto Guadagni, Louis Kasekende, Corbin, and Caroline Harper.
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