Reducing Poverty Sustaining Growth Scaling Up Poverty Reduction A Global Learning Process and Conference in Shanghai, May 25–27, 2004 Case Study Summaries Acknowledgments The World Bank gratefully acknowledges the participation of, and contributions from, the Governments of Austria, Belgium, Canada, France, Germany, Italy, Spain, Sweden, and the United Kingdom, as well as the United Nations Development Programme. Many hundreds of people cooperated to bring these cases to you—too many to be acknowledged individually in the summaries. For the full text of any of the cases summarized here, as well as contact information for the authors and sponsors of the case, check after the conference at http://www.reducingpoverty.org. Except as otherwise noted in the summaries, the cases summarized here were commissioned by the World Bank Institute through the World Bank operational vice presidencies. This unedited collection of case studies was prepared for use at the Scaling Up Poverty Reduction conference in Shanghai, China, held in May 2004. A thorough synthesis of the findings of the conference will be published as a book by the World Bank late in 2004. © 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. The findings, interpretations, and conclusions expressed herein 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 does not guarantee the accuracy of the data included in this work. 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Contents Welcome ...............................................................................................................................................ix 1 Thirteen Countries That Have Rolled Back Poverty Chile: Successes and Failures in Poverty Eradication....................................................................1 China’s 8-7 National Poverty Reduction Program.........................................................................3 Costa Rica and El Salvador: Finding the Appropriate Role for the Public and Private Sectors in Poverty Reduction......................................................................................................5 India: Local Democracy and Empowerment of the Underprivileged—An Analysis of Democratic Decentralization ......................................................................................................9 Indonesia: Rapid Growth, Weak Institutions ...............................................................................13 Republic of Korea: Four Decades of Equitable Growth...............................................................17 Malaysia: 30 Years of Poverty Reduction, Growth, and Racial Harmony...................................19 Poland and the Russian Federation: A Comparative Study of Growth and Poverty....................21 Tanzania’s Economic Reforms and Lessons Learned World Bank Operations Policy and Country Services.........................................................................26 Tunisia’s Path to Development: 1961–2001 ................................................................................29 Uganda: From Conflict to Sustained Growth and Deep Reductions in Poverty ..........................32 2 Investment Climate Burkina Faso: 30 Years of Successful Cotton Production Agence Française de Développement ..............................................................................................37 Caribbean: CARTAC and the Eastern Caribbean Economic Management Program Canadian International Development Agency ...................................................................................38 China: Building Supply Chains in the Dairy Industry: The New Hope Group International Finance Corporation .................................................................................................40 China: Institutional Transition, Improvement of Investment Environment, and Poverty Reduction in Sunan and Wenzhou............................................................................................42 India’s E-choupals: A Private-Sector Approach to Link Farmers to Markets International Finance Corporation .................................................................................................46 India’s Milk Revolution: Investing in Rural Producer Organizations..........................................49 Kenya: Exporting Out of Africa—Kenya’s Horticulture Success Story......................................52 Southeastern Europe: Trade and Transport Facilitation...............................................................55 Tunisia’s Export-Based Growth Strategy Agence Française de Développement ..............................................................................................57 Vietnam: Reducing Administrative Barriers to Entrepreneurship International Finance Corporation .................................................................................................58 iii Scaling Up Poverty Reduction 3 Microfinance Bangladesh: Growth, Achievements, and Lessons in Microfinance............................................63 Bangladesh: Scaling Up a Program for the Poorest—BRAC’s IGVGD Program Consultative Group to Assist the Poor .............................................................................................65 Brazil: Struggling with the Growth-versus-Best-Practice Tradeoff—The CrediAmigo Program of the Banco do Nordeste Consultative Group to Assist the Poor .............................................................................................67 Arab Republic of Egypt: Commercial Microfinance—The National Bank for Development.....68 India: Scaling-up Access to Finance for the Rural Poor ..............................................................70 Indonesia: 20 Years of Large-Scale Microfinance at the Bank Rakyat .......................................72 Kazakhstan: Commercial Banks Entering Micro and Small Business Finance— The Kazakhstan Small Business Program Consultative Group to Assist the Poor .............................................................................................73 Kenya’s Equity Building Society: A Domestic Financial Institution Scales Up Microfinance Consultative Group to Assist the Poor .............................................................................................75 Kenya: Scaling up Microcredit—The K-Rep Story .....................................................................75 Madagascar: Credit with Education in TIAVO Savings and Loan Network Consultative Group to Assist the Poor .............................................................................................78 Mexico: Integrating the Poor into the Mainstream Financial System: The BANSEFI and SAGARPA Programs Consultative Group to Assist the Poor .............................................................................................79 Mongolia’s Agricultural Bank Consultative Group to Assist the Poor .............................................................................................82 4 Legal and Judicial Reform Bhutan: Sustainable Development through Good Governance....................................................85 India: Holding the State to Account through Citizen Report Cards.............................................87 Nicaragua: Support for the Administration of Justice—The Rural Judicial Facilitators Program Swedish International Development Cooperation Agency ...................................................................89 Russian Federation: Monitoring Administrative Barriers to Small Business Development ........92 Rwanda’s Demobilization: Creating the Environment for Investment ........................................95 Singapore: Building an Efficient, Accessible Judicial System.....................................................98 Ukraine: Better Governance in Ukraine through Public Participation—The People’s Voice Project ..........................................................................................................................102 5 Education Bangladesh: Access to Education for the Poor and Girls...........................................................107 China: Universalizing Nine-Year Compulsory Education for Poverty Reduction in Rural China.............................................................................................................................109