Transcript Document

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

2

Environment matters for development

►

Environmental problems are enormous and increasing

•

Climate change

• • • •

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

3

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

4

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

– – –

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

5

This evaluation looks broadly at WBG engagement FY90-07

►

Broad coverage: World Bank, IFC, and MIGA

►

Evaluation Objectives

–

Assessing WBG effectiveness

– –

Identifying principal external and internal constraints Suggesting improvements going forward

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

Methodology

–

Literature review

– –

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

6

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

7

Findings

8

World Bank

1.

2.

3.

• • •

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

9

World Bank (cont)

4.

5.

6.

•

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

1 0

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

1.

• • •

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

2.

•

Environmental work quality

appraisal generally good, supervision of financial intermediaries weak

3.

•

“Doing good” initiatives

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

1 1

MIGA

1.

2.

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

• •

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

1 2

Looking ahead

1 3

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

1 4

The evaluation has four broad recommendations

1.

2.

3.

4.

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

1 5

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)…

1 6

…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)