ICRR 10705 Report Number : ICRR10705 ICR Review Operations Evaluation Department 1. Project Data: Date Posted : 08/03/2000 PROJ ID : P008582 Appraisal Actual Project Name : Employment Promotion Project Costs 142.2 110.37 US$M ) (US$M) Country : Poland Loan/ US$M ) 100.0 Loan /Credit (US$M) 78.87 Sector (s): Labor Markets & Cofinancing Employment US$M ) (US$M) L/C Number : L3338 Board Approval 91 FY ) (FY) Partners involved : Closing Date 12/31/1996 12/31/1999 Prepared by : Reviewed by : Group Manager : Group : 2. Project Objectives and Components a. Objectives Overall objective . Promote employment, investment and economic growth by improving labor force development . Specific Objectives . Improve cost-effectiveness of employment and social welfare programs Increase occupational, sectoral and geographic mobility of the labor force Increase productivity of the labor force and promote investment Test mechanisms for job creation by the unemployed through micro -enterprise development. b. Components Management infrastructure : improve administrative efficiency and coverage of programs supported under the Employment and Social Welfare Law. Income Support : establish criteria for client means testing by Social Welfare Offices; develop staff training; create unemployment benefit and financing system coordinated with other cash benefit systems . Employment Services : develop and implement Industrial Adjustment Services; develop occupational counseling; and improve national and local Labor Office staff training . Adult Training : Establish national guidelines and procedures and development of local training programs for unemployed adults Micro -enterprise Development : strengthen service delivery to unemployed involved in micro -entreprises from local non-governmental organizations, small business advisory centers and enterprise Development (Credit) Funds. c. Comments on Project Cost, Financing and Dates In 1994, the loan was reduced to $80 mill. The scope of Adult Training component was reduced from $ 43 m. to $6 m. and micro-enterprise component expanded from $ 2.5 m. to $13.1 m. 3. Achievement of Relevant Objectives: All four objectives were fully achieved . Cost effectiveness of employment and social assistance programs was increased through automation, evaluation studies, and refinement of policy and regulations . Mobility of the work force was improved through local the Labor Offices, as well as adult retraining . Productivity of the workforce was increased through adult retraining . Mechanisms for job-creation by unemployed in micro-enterprises were tested. 4. Significant Outcomes/Impacts: The developmental impact exceeded expectations at appraisal by improving the legal framework, building capacity of the Ministry of Labor and Social Protection and establishing labor market monitoring in the Statistical Office . 5. Significant Shortcomings (including non-compliance with safeguard policies): Weaknesses during implementation revealed were administrative procedures, political pressures on project staff and unclear demarcation of responsibilities of various agencies involved . 6. Ratings : ICR OED Review Reason for Disagreement /Comments Outcome : Highly Satisfactory Satisfactory Though highly satisfactory on many outcomes, sufficient hard evidence on objectives of cost-effectiveness, labor productivity and investment not provided . Institutional Dev .: Substantial High ICR rating is high for impact Sustainability : Likely Likely ICR states that one or two components are of uncertain sustainability for particular reasons but overall sustainability is likely. Bank Performance : Satisfactory Satisfactory Borrower Perf .: Satisfactory Satisfactory Quality of ICR : Satisfactory NOTE: NOTE ICR rating values flagged with ' * ' don't comply with OP/BP 13.55, but are listed for completeness. 7. Lessons of Broad Applicability: Among many lessons in the ICR, several are especially noteworthy . Information generated on the efficiency of labor programs should not be used punitively but to help local offices redirect resources cost -effectively. Small business credit programs at positive interest rates can and do work outside the commercial banking sector. But, contrary to common opinion, credit programs are not necessarily effective in supporting small business development unless Small Business Advisory Centers are accessible to clients . Business incubators take time to start and must be conceptually sound, but are cost -effective. 8. Assessment Recommended? Yes No Why? An early employment promotion and services project for ECA that showed substantial success and institutional development impact at completion . Audit may be clustered with similar projects for comparative learning . Substantial M&E components would provide a base -line. 9. Comments on Quality of ICR: The ICR comments that an Intensive Learning (ICR), which the ICR mission conducted, was indeed appropriate, but because it would take additional budgetary resources, the Borrower had little interest in supporting it . Stakeholder workshop findings not reported in Annex but included in ICR text . The ICR would have been improved by relating the outcomes in terms of objectives for cost -effectiveness; labor force mobility, productivity and investment .