Transcript Document

Environmental Sustainability: An Evaluation of World Bank Group Support July 2008

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Environment matters for development

Environmental problems are enormous and increasing

Climate change

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Air and water pollution Soil erosion and desertification Water scarcity Loss of biodiversity

Developing countries are severely affected:

Growth

Poverty

Both public and private action are needed

WBG timeline: Increased attention since 1990

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1970 1980 WB project focus: "do no harm" IFC: Deepening attention to project level impacts from 1991 World Development Report (for Rio summit) (1992) WB: Increasingly proactive role from 1992 * 4-fold agenda: Safeguards, Stewardship, Mainstreaming, Global sustainability 1990 2000 IFC: Equator Principles WB: 2003 World Development Report WBG: 2001 Environmental Strategy MIGA: Enhanced project level focus from 1998

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Key messages

The World Bank Group has made progress since 1990 as an advocate for the environment

But treatment of environmental issues in many WBG country programs remains weak due to major external and internal constraints

The WBG needs to increase its engagement and effectiveness in environmental issues through

Greater attention in Bank Group and country strategies

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More effective cross-sectoral approaches Better measurement of activities and results Closer collaboration within the WBG and with partners

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This evaluation looks broadly at WBG engagement FY90-07

Broad coverage: World Bank, IFC, and MIGA

Evaluation Objectives

Assessing WBG effectiveness

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Identifying principal external and internal constraints Suggesting improvements going forward

Perspectives: “Do no harm” and “ Do good” ►

Methodology

Literature review

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Portfolio review (variation across WBG due to data availability) 9 country case studies

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The 9 case study countries come from all regions and a mix of MICs and LICs

► Together these countries account for 56% of population, 46% of GDP, and over 40% of Bank environmental lending in developing and transition countries.

East Asia Latin America Middle East/N. Afr Sub-Saharan Africa South Asia Europe/Central Asia China Brazil Egypt Ghana, Madagascar, Senegal, Uganda India Russia

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Findings

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World Bank

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Strategies

2001 WBG Strategy growing but still inadequate attention in country strategies even less in country-led PRSPs • • •

Lending and grants

exact amount unknown – at most 5-10% Bank total project performance better over time, but M&E still weak weaker performance in Africa • • •

Nonlending

as important as lending country environmental assessments: helpful where undertaken research influential: WDRs ’92, ’03; Greening Industry

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World Bank (cont)

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Mainstreaming

some improvement but still far to go (poverty, health-environment links, vulnerability) • •

Partnerships

needs strengthening within WBG and externally some good examples (GEF, Pov-Env. Ptnp. ) • •

Global public goods

less emphasis during evaluation period, though now growing some good examples (Montreal protocol, carbon finance)

IFC

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Sustainability in IFC corporate strategies since 2001. Until recently focus has been on “do no harm”. Move to more “do good”.

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Environmental and social effects of investment projects

67% success rate in meeting IFC requirements and performance standards weak performance in Africa and in certain sectors limited attention to broader context

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Environmental work quality

appraisal generally good, supervision of financial intermediaries weak

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“Doing good” initiatives

M&E system generated insufficient data or still too early to assess Environment & Social Sustainability advisory services - Equator Principles

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MIGA

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MIGA’s focus has been primarily on “do no harm” Sustainability concept just incorporated in core business

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Environmental and social effects

Category A projects: better performance and increased attention to social issues Category B projects: less attention, worse performance •

Environmental work quality

Strengthened environmental and social issues in underwriting New policy and performance standards (2007): Go beyond safeguards to promote sustainability in guaranteed projects

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Looking ahead

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Many constraints need to be confronted

• • • ►

Clients (public and private)

Competing demands (e.g. growth, energy needs, governance, conflict) Insufficient client commitment Inadequate institutional capacity and resources • • • • ►

World Bank Group

Competing priorities Inadequate staff skills and knowledge networks Difficulties of coordination across sectors, across WBG, and externally Difficulties of taking long-term view and of assessing country-level impacts beyond individual projects

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The evaluation has four broad recommendations

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Elevate environmental sustainability as WBG priority -- not just more of the same, but a “transformational” change Move to more integrated, cross-sectoral and area based approaches and strengthen staffing Greatly improve ability to measure, monitor, and evaluate activities and their results Continue to strengthen partnerships

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What would success look like?

A widely-shared understanding of the critical role of environmental sustainability to development

Clear alignment behind key strategic objectives

Strong and effective WBG capacity

Effective internal and external collaboration

An emphasis on continual learning (from both success and failure)…

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…and a more sustainable world for all

Thank you

Evaluation available at: www.worldbank.org/ieg/environmentalsustainability Evaluation authors: John Redwood (IEG-WB) Jouni Eerikainen (IEG-IFC) Ethel Tarazona (IEG-MIGA)