71528 I n tern atIo n al D evelo p men t asso cIatIon Results in Sustainable Development -Overview- IDa at WorK sector summarIes october 2010 sustaInaBle Development netWorK d | IDA at WORK: Extractive Industries Transparency Initiative contents Foreword 3 Agriculture 4 Climate Change 6 Community Driven Development 8 Disaster Risk Reduction 10 Energy 12 Environment and Natural Resources Management 14 Extractive Industries Transparency Initiative 16 Global Food Crisis Response 18 Information and Communication Technology 20 Land Tenure Policy 22 Mining 24 Social Development 26 Transport 28 Urban Development 30 Water Resources 32 Water Supply and Sanitation 34 IDA at WORK: Sector Summaries | 1 2 | IDA at WORK: Extractive Industries Transparency Initiative Results in Sustainable Development -Overview- sector summarIes - ForeWorD The International Development Association (IDA) is the World Bank’s fund for the poorest. One of the world’s largest sources of aid, IDA provides support to the 79 least developed countries. These countries are home to 2.5 billion people, 1.5 billion of whom survive on $2 a day or less. Over the last ten years many countries have made significant progress in closing the gap to reach the Millennium Development Goals (MDGs), yet significant challenges remain. The path to bridging this gap has become even harder given the impact of the recent food, fuel and global economic crises. Embracing the ‘triple bottom line’ of sustainability – economic, environment and social - is critical for poverty reduction and achievement of the MDGs. IDA’s role in providing financial resources, supporting policy and institutional reforms, fostering knowledge transfer, increasing donor coordination, and leveraging additional financing has helped transform the lives of hundreds of millions of people. IDA has helped to increase access to infrastructure services, improve service delivery, raise agricultural productivity, promote inclusive and accountable institutions, improve governance of natural resources, mitigate disaster risk, and promote ‘green’ development. Also notable are IDA’s efforts to engage in issues of a global nature, such as climate change and food scarcity, as well as to integrate environmental and social considerations in the projects and programs it supports. This booklet describes results of such IDA-supported projects and programs. The booklet is accompanied by a series of separate sector specific briefs (www.worldbank.org/sustainabledevelopment/idaresults). The information and case examples you find in this booklet, as well as the more detailed briefs provide an illustration of not only what has been accomplished, but also what more remains to be done. Inger Andersen Vice President Sustainable Development The World Bank IDA at WORK: Sector Summaries | 3 IDA at WorK: agriculture Three-quarters of the world’s poor live in rural areas, Over the past ten years, the IDA allocation to and most of them engage in farming for their liveli- agriculture fluctuated between US$490 million in hoods. It accounts for one-third of gross domestic FY01 to a high of US$2.16 billion in FY09 and product and three-quarters of employment in US$1.38 billion in FY10. The largest share of re- Sub-Saharan Africa, and for more than 80 percent of sources for agriculture has gone to Sub-Saharan freshwater use worldwide. Independent research Africa (55 percent in FY06–FY10, up from 45 percent shows that agricultural growth is especially pro-poor, in FY01–FY05), while South Asia was the second but also that it is particularly at the mercy of climate largest beneficiary. IDA Development Policy Lending change. It is by its nature a central challenge for the to agriculture almost doubled from an average of productive use of the International Development US$119 million over FY01-05 to US$227 million over Association (IDA) resources. FY06-10. Development policy operations generally provide quick access to financial assistance in CHALLENGE support of a range of development objectives that The World Development Report 2008: Agriculture require underlying medium-term policy and institu- for Development was endorsed by donors and, for tional activity. This approach is critical in smallholder the first time since the 1980s, led to a broad, agriculture where a large number of actions need to renewed consensus on the importance of agriculture occur in sequence to allow farmers to produce more for development. The Report and the response to the and to sell into expanding, but more demanding, recent food crisis have emphasized four key needs agricultural markets. that can and must be met by agriculture in many developing countries including: reducing poverty, rEsuLts feeding the world, mitigating effects of climate The Bank has had a number of successes in change, and supporting economic transformation. IDA-funded operations for agriculture. Some examples are: ApproACH • The Mauritania Rain-Fed Natural Resources The World Bank Group in consultation with its Management Project (FY97) reforested and clients has committed to a significant expansion in protected common land through investments in support of agriculture. The World Bank has prepared soil and water conservation. Impact analysis an Agriculture Action Plan for the fiscal years 2010- showed that yields averaged 800 kg/ha with the 2012 that seeks to confront these challenges by project, compared with 100 kg/ha without the addressing five critical themes: raise agricultural project. Women have benefited from closer productivity, link farmers to markets and help them access to water and from cash income from earn more, reduce risk and vulnerability, facilitate village gardens and market stalls. rural non-farm income, and enhance environmental services and sustainability. 4 | IDA at WORK: Agriculture • Two projects set out to restore China’s heavily MovING ForWArD degraded Loess Plateau (FY94, FY99) through Recently approved IDA agricultural projects tend one of the world’s largest erosion control pro- to reflect a strategic view of agriculture as an engine grams with the goal of returning this poor part of of inclusive growth and economic diversification China to an area of sustainable agricultural along private sector supply chains in the context of production. Between FY94-06, more than 2.5 policy and regulatory reforms, infrastructure develop- million people in four of China’s poorest provinces ment, institution building and skills development by were lifted out of poverty. the public sector. IDA as a partner in development • The Afghanistan Emergency Irrigation Rehabilita- should continue to invest in key international public tion Project (FY03), despite numerous challenges, goods that facilitate improved agricultural production, helped rehabilitate multiple irrigation systems, including enhanced productivity and better gover- benefiting over 600,000 households in all 34 nance over the use of natural resources for the provinces. The project has introduced innovative benefit of the overall population. Beyond production ways of supervising in insecure areas by, for and resource management, it is vital to assist clients example, using geo-referenced photos and videos with market access. Enhanced participation in the to monitor and report progress. ongoing rapid development of agriculture and natural resource-related value chains requires building the pArtNErs capacity of both poor people and poor countries to The closer coordination of various donor efforts in meet ever more stringent reliability, quality, biosafety, agriculture and rural development in the poorest sanitary or phytosanitary, and food safety standards, countries of the world is promoted by, among and building the institutions that allow them to others, the World Bank-supported Global Donor achieve market recognition for better compliance in Platform for Rural Development, established in 2004. terms of higher prices and larger sales volumes. In 2005, the platform started piloting harmonization efforts in line with the Paris Declaration on Aid Effectiveness in four IDA countries—Burkina Faso, Cambodia, Nicaragua, and Tanzania. The Bank also supports critical global public goods by funding and collaborating with the Consultative Group on International Agricultural Research. The full sector notes that are summarised here can be found at www.worldbank.org/sustainabledevelopment/idaresults IDA at WORK: Agriculture | 5 IDA at WorK: climate change Support in creating climate-resilient poverty reduction ApproACH and development paths has become a development Meeting the climate challenge needs to be imperative. The poorest and most vulnerable coun- achieved through supporting country-led develop- tries will suffer most from the impacts of climate ment strategies and priorities while helping countries change. In the past year the International Develop- take advantage of new economic, capacity building ment Association (IDA) has had unprecedented and financing opportunities that arise from the global demand from many countries for support in their climate change agenda. efforts to address development and climate change challenges. IDA countries also face the challenge of rEsuLts planning for and investing in low carbon solutions. In Bangladesh, more than a million households IDA has responded with a broad range of assistance without access to electricity are now getting off-grid through an effective combination of financial and solar power thanks to a US$130 million project other resources. funding from IDA. The joint World Bank and Interna- tional Finance Corporation’s (IFC) Lighting Africa CHALLENGE program seeks to provide up to 250 million people Climate change is a major threat to the achieve- in Sub-Saharan Africa with access to non-fossil fuel ment of the Millennium Development Goals in based, low-cost, safe, and reliable lighting products developing countries, and hard-earned development with associated basic energy services by the year gains in all regions of the world. With climate change 2030. already happening and with more severe impacts to follow, it is recognized that development planning Making development climate-resilient has and financing strategies need to consider the risks emerged as a major theme in supporting poverty associated with climate change. Given that the reduction and economic growth in Sub-Saharan challenge of confronting climate change impacts cuts Africa. From addressing drought risk in Ethiopia across all sectors, IDA is an appropriate platform to (US$175 million of IDA funds) to watershed manage- inject climate change actions into country-level ment in Kenya and Malawi (a total of US$75.5 strategies, particularly in the area of adaptation. million), Africa is rapidly increasing its efforts to grapple with development challenges in a changing climate. 6 | IDA at WORK: Climate Change pArtNErs MovING ForWArD IDA continues to play a crucial integrating role in The World Bank Group will step-up efforts to leveraging additional development funds as well as in complement development assistance through providing a comprehensive development platform for instruments such as IDA with specialized grant- its clients. Among IDA’s partnerships for climate based resources to address additional climate risks. action: The Bank Group will explore options for IDA-support- ed programs to have access to substantial and • Development of the Climate Finance Knowledge predictable complementary adaptation funding. Platform with the UN Development Programme Further attention will be given to helping clients and (UNDP) as part of a coordinated UN response will partners understand and manage the adaptation- be a valuable tool for IDA countries. A prototype development linkages in different contexts, particu- is online which is being continually enhanced. larly through learning by doing from the Pilot Program UNDP and the World Bank have allocated seed for Climate Resilience, sharing lessons from other funds while fund raising with donors is ongoing. adaptation-related programs, and accelerating the work on methodologies for vulnerability assessments • In March 2010, the World Bank and the UNDP and climate risk screening. were designated as the first Multilateral Imple- menting Entities of the Adaptation Fund. • Joint implementation of the Climate Investment Funds by the Multilateral Development Banks begun with current pledges of US$6.3 billion. • The Forest Carbon Partnership Facility includes 37 tropical and sub-tropical countries; has mobilized US$165 million and made 11 grant allocations for readiness work. The Carbon Partnership Facility will broaden the impact of carbon finance (became operational in May 2010 with 100 million Euro in commitments already made). The full sector notes that are summarised here can be found at www.worldbank.org/sustainabledevelopment/idaresults IDA at WORK: Climate Change | 7 IDA at WorK: community Driven Development Community driven development (CDD) – an ap- ApproACH proach that gives control of development decisions IDA has used CDD approaches to support a wide and resources to community groups – has been a range of local development and service delivery key operational strategy for delivery of International needs identified by communities themselves. This Development Association (IDA) programs over the has included water supply and sewerage rehabilita- past decade. IDA lending for CDD has averaged tion, school and health facilities construction, US$1.3 billion per year with the number of active nutrition programs for mothers and infants, building CDD operations gradually increasing since 2000. of rural access roads, and support for livelihoods and CDD operations have proven successful at reaching microenterprise. CDD has also proven useful in and empowering communities, delivering cost-effec- responses to natural disasters and increasingly, the tive infrastructure, enhancing livelihoods, and CDD approach has also become the preferred improving community dynamics. operational strategy for economic reconstruction, fostering social cohesion, and bottom-up state CHALLENGE building in post-conflict and fragile situations. By emphasizing empowerment and putting resources in the direct control of community groups, rEsuLts the CDD approach holds the promise of achieving Given the demand-driven and dispersed nature of inclusive and sustainable poverty reduction. The CDD operations, it is difficult to provide an aggregate approach emerged originally in response to the local summary of their overall results. Instead, summarized institutional challenges faced by several countries below is a snapshot of results achieved by select such as Indonesia, Rwanda and Sierra Leone CDD projects funded by IDA across different regions emerging from financial or political crises in the late over the past decade: 90s. In such situations, it became clear that a • Kecamatan Development Program, Indonesia reliance on a centralized, top-down, and pre-planned (US$771 million over three projects): Eighteen approach to development assistance that involved million people are benefiting from better services, little participation of local people would not be which include more than 37,000 kilometers of effective. Over time, recognizing the vast differences constructed or rehabilitated local roads, 8,500 in local contexts, the need to strengthen local built or rehabilitated bridges, 9,200 new water institutions, and in an effort to foster greater owner- supply units, and 3,000 new or improved health ship and support for development over 70 IDA posts. Evaluations show that per capita consump- member countries have undertaken projects with a tion gains among poor households were 11 CDD approach. percent higher, and the proportion of households Despite this rapid expansion of CDD, the ap- moving out of poverty was 9.2 percent higher, in proach still faces challenges such as ensuring project areas than in matched control locations. sustainability and links with decentralization reforms, • Andhra Pradesh Rural Poverty Reduction reaching the most vulnerable within communities, Project, India (US$150 million plus US$65 million expanding to large scale national programs, and additional financing): As of May 2010, 10.7 million adding to the existing evidence base on impacts rural poor women were organized into communi- from CDD operations. ty-based organizations that collectively save over US$1.6 billion and leverage credit over US$5.8 billion from commercial banks. 8 | IDA at WORK: Community Driven Development • Social Investment Fund Project V, Honduras MovING ForWArD (US$ 63.6 million): Around 2.5 million people are While deepening its lending programs for local benefiting from a total of 2,888 projects that have and community driven development, in the coming delivered 1,446 rehabilitated schools, about 700 years, IDA will focus its analysis and program new schools, 163 new health centers, 347 small guidance in several areas: water/sanitation systems, and 461 latrines. • CDD in conflict, post-conflict, fragile and disaster Additionally, all children in targeted areas are management contexts; attending primary school. In project communities, • Women’s empowerment and youth inclusion in there has been an increase in access to health CDD; care assistance, and more communities have • Development of national CDD programs through access to running water. local development platforms; • Rural Investment Project, Azerbaijan (US$ 15 • Linking with the private sector for both productive million plus US$15million additional financing): livelihood projects and public welfare programs; Travel time to school and markets has been • Impact evaluation and participatory monitoring; reduced by 47 percent and 26 percent respec- • Using CDD approaches for climate mitigation, tively where the project has rehabilitated rural adaptation and resilience at the community level. roads. Moreover, 78 percent of farm products are now transported to markets by farmers them- selves, a significant advantage compared to non-beneficiary villages in the same region where only 18 percent of farm produce is brought directly to market by farmers. pArtNErs IDA has worked with several national, regional, and global partners in supporting its CDD programs. Many prominent CDD operations such as the Afghanistan National Solidarity Program and the Indonesia Kecamatan Development Program have received funding also from other bilateral and multilateral donors such as the Asian Development Bank. At the corporate level, several donor trust funds (such as the Norwegian and Finnish Trust Fund for Environmentally and Socially Sustainable Development and the Bank Netherlands Partnership Program) have provided resources for CDD tool development, capacity building and impact research. From 2003-08 a partnership with the International Fund for Agriculture and Development focused on improving CDD programs specifically for the Africa region. The full sector notes that are summarised here can be found at www.worldbank.org/sustainabledevelopment/idaresults IDA at WORK: Community Driven Development | 9 IDA at WorK: Disaster risk reduction The International Development Association (IDA) is aftermath of major natural disasters, Post Disaster improving the ability of vulnerable developing Needs Assessments (PDNAs) have been carried out countries to manage disaster risks as well as in several IDA countries, allowing the formulation of respond to disasters, but challenges remain. Newer longer-term strategy and action plans for sustainable vulnerabilities are emerging faster than capacities are recovery and reconstruction. PDNAs are led by the developed. IDA is addressing these challenges by affected governments with the participation of their helping making Disaster Risk Reduction (DRR) a development partners. Third, IDA has employed a strategic priority in country development strategies mix of lending instruments such as Emergency and ensuring predictable pre- and post-disaster Recovery Credits and Development Policy Credits to financing. Results can be seen in IDA’s assistance in finance post-disaster recovery and reconstruction as the wake of natural disasters in Bangladesh, Yemen, well as ex-ante risk reduction projects: an average of and Haiti. 20 disaster-related projects per year have been approved in IDA countries since 1984. Overall in CHALLENGE recent years, there has been a gradual shift in how The impact of natural disasters is higher in poorer IDA countries are handling disasters, that is, from countries partly due to their insufficient capacity to being focused on responding to disasters as they manage risks before and after disasters. Several strike, to a mix of ex-post recovery and ex-ante risk factors contribute to overall low capacity in disaster reducing actions. By ensuring increased resilience to risk management: poor institutional arrangements; disasters, IDA is able to support countries reduce lack of proper monitoring of risks; lack of disaster their vulnerability to disasters that can undermine preparedness measures and early warning systems; decades of investments and economic development. lack of risk-reducing measures such as land use planning, building codes; and lack of means to rEsuLts finance damages. At the same time, climate change, IDA countries have benefitted from over 100 haphazard urbanization, and environmental degrada- disaster-related projects in the past five years. For tion continue to add new vulnerabilities. example, in 2007, IDA provided a US$109 million credit to help finance recovery from the damage and ApproACH losses caused by Cyclone Sidr in Bangladesh. This IDA has responded to the challenges posed by project benefits about 1.7 million households, disasters in multiple ways. First, more IDA countries supports the construction of approximately 50 new are making DRR a strategic priority in their national shelters and repairs to another 250 existing multi- development strategies. Analytical and advisory purpose shelters, and rehabilitation of over 100 km of services in the areas of disaster risk governance, embankments. In 2009, IDA provided US$35 million disaster risk assessment and monitoring, disaster in additional financing to assist Yemen’s reconstruc- risk mitigation, disaster risk financing, disaster tion following storms and floods in 2008. The project preparedness, climate adaptation and sustainable improves emergency response effectiveness and recovery have been scaled up. Second, in the restores livelihoods affected by the damage to the agriculture, housing, transport and infrastructure sectors. 10 | IDA at WORK: Disaster Risk Reduction Also, following the 2004 hurricane season, the MovING ForWArD CARIBBEAN COMMUNITY (CARICOM) Heads of IDA in recent years has stepped up its support to Government, which also includes Haiti, requested manage disasters and disaster risks, both ex-ante World Bank assistance in improving access to and ex-post, however challenges remain. The first catastrophe insurance. The world’s first regional and foremost challenge is financial. Although IDA has disaster financing facility, the Caribbean Catastrophe allowed access to exceptional resources for recon- Risk Insurance Facility (CCRIF), was established in struction and recovery, its capacity to respond to 2007 to provide a solution to the short-term liquidity disasters remains limited. IDA is currently working on needs of Caribbean governments in the aftermath of a proposal for a permanent Crisis Response Window a disaster. Within two weeks of the 2010 Haiti that will allow for simplified triggers that would enable earthquake, CCRIF transferred US$8 million to timely, predictable, adequate and transparent crisis provide immediate liquidity to the government. response. Coordination among development Following the 2005 earthquake in Pakistan, the partners at country level is the other significant World Bank committed around US$875 million in the challenge in both pre- and post-disaster operations. first two months after the earthquake, which subse- IDA will work closely with development partners at quently grew to approx. US$1 billion. Significant the country level to support governments in their achievements include the early provision of shelter disaster risk reduction efforts. support to 550,000 people; the development and implementation of completely transparent grant disbursement mechanisms; and the reconstruction of more than 400,000 earthquake-resistant houses. pArtNErs The World Bank works with 18 other donors, through the multi-donor trust fund established under the Global Facility for Disaster Reduction and Recovery for a coherent approach to investing the financial resources committed collectively, thereby enabling effective donor harmonization in keeping with the Paris Principles. This Facility’s governing body for policy-making and strategic direction is composed of donors from the Organisation for Economic Co-operation and Development, emerging economies, developing countries, as well as the United Nations/International Strategy for Disaster Reduction, the United Nations Development Pro- gram and the International Federation of Red Cross and Red Crescent Societies to ensure that the voices of the most vulnerable are reflected in the Facility’s governance. The full sector notes that are summarised here can be found at www.worldbank.org/sustainabledevelopment/idaresults IDA at WORK: Disaster Risk Reduction | 11 IDA at WorK: energy Reliable, affordable, and sustainable energy services IDA credits and grants for energy projects for agriculture, industry, commerce and households amounted to about US$1.36 billion in FY2010. underpin growth in productivity and output, and Lending to IDA countries from the International improve the welfare of the poor. However, in many Finance Corporation, the Multilateral Investment International Development Association (IDA) coun- Guarantee Agency and trust funds, such as the tries, households and enterprises lack service Global Environment Facility and Carbon Finance altogether or suffer high cost and unreliable energy reached US$577 million, in addition to the funds supplies. In fiscal year (FY) 2010, the total cost of provided directly by IDA, providing US$1.94 billion to energy projects with IDA participation was about support energy access in IDA countries. US$2.7 billion, of which IDA financed US$1.36 billion. IDA resources have improved access and reliability to rEsuLts energy supply and are facilitating the shift towards In Bangladesh, IDA has been active for a decade lower-carbon options of energy supply. in the Rural Electrification and Renewable Energy Development Project, helping connect more than CHALLENGE 900,000 households through grid extensions and For the past ten years, under-investment in the solar home systems. With additional financing power sector in IDA countries has resulted in a huge approved in FY2010, the government of Bangla- and growing power supply shortfall, unreliable desh’s original target of just 50,000 new connections services and slow progress in connecting poorly through solar home systems has been revised to a served populations. The challenge of providing million systems by 2012, a twentyfold increase. reliable access is now balanced with rising concerns In Bolivia, IDA has been working to provide about climate change, and adapting to ensure 90,000 people in rural and peri-urban areas with security of power supply in the future. electricity since 2005 through the Decentralized Infrastructure for Rural Transformation Project. In ApproACH rural, remote areas of Bolivia, where grid electrifica- IDA’s focus has been on improving access to, and tion is not economically viable, the project has reliability of, modern energy services, while at the developed a new model to provide sustainable same time addressing the underlying policy and access to solar electricity. Since project inception in institutional issues that have contributed to the lack 2005, more than 9,200 solar home systems have of investment in the sector. In addition, IDA is often been installed in the poorest rural areas of Bolivia, the largest financier of critical energy infrastructure, benefiting an estimated 45,000 people. and its investment and guarantees have played a critical role in leveraging both public and private investment. IDA is also increasingly supporting decentralized renewable energy sources, which are not just cleaner, but less costly and more affordable solutions to improving access. 12 | IDA at WORK: Energy In Kenya, IDA has engaged in the development of MovING ForWArD geothermal energy in the Rift Valley for nearly 15 Globally, IDA’s strategy will seek to support: years, helping supply clean energy to the growing (i) regional efforts to develop energy corridors that economy. The Kenya Electricity Expansion Project, could save sub-Saharan Africa US$2 billion a year in approved in FY2010, will help develop 280MW of the electricity costs; (ii) policy, institutional and gover- country’s 7,000MW geothermal energy potential, nance improvement of the energy sector’s institu- supplying about 20 percent of the required installed tions; (iii) sector-wide approaches to plan and finance generating capacity by 2015, and reducing Kenya’s expanded access in a more systematic way while reliance on hydropower energy, which is vulnerable facilitating donor coordination; (iv) energy efficiency to drought. programs; (v) low-carbon energy to tap into new resources for climate finance and balance the needs pArtNErs for energy access; and (vi) modern biomass and Given the tremendous challenge of ensuring lighting programs and improved cooking stove reliable energy access, IDA has worked with a programs through public private partnerships. number of development partners, combining each institution’s capabilities and strengths. The projects collectively leveraged twice their investment amounts with financing from recipient governments, private financing, and development agencies. The Energy Sector Management Assistance Program has helped build capacity at public energy institutions and helped governments develop plans for low carbon growth. The Netherlands dedicated US$29 million in FY2009 to support activities in Sub-Saharan Africa through the Africa Renewable Energy Access Grants Program. Finally, in FY2010, the Scaling Up Renew- able Energy in Low Income Countries Fund, one of the Strategic Climate Funds of the Climate Investment Funds became active. The full sector notes that are summarised here can be found at www.worldbank.org/sustainabledevelopment/idaresults IDA at WORK: Energy | 13 IDA at WorK: environment and natural resources management For the last 30 years, the International Development ApproACH Association (IDA) has contributed substantially to Building on the 2001 Environment Strategy of the policy reforms and institution building in environmen- World Bank, the new Environment Strategy for the tal and natural resources management in the lowest World Bank Group aims at “Greening Development� income countries. IDA has provided important by transforming growth paths, leveraging natural assistance in capacity building and investment for resources for growth and poverty reduction, and pollution management and conservation of key managing the environmental risks to growth and ecosystems. IDA has served a dual role of funding development. Over the past decade, IDA has lent and leveraging additional funds to achieve this some US$5.2 billion to support investment in purpose. environment and natural resource management (ENRM). 15 percent of this portfolio supports CHALLENGE environmental policy and institutions, indicating IDA’s The world today faces an array of both persisting commitment to improving governance and strength- and new environmental challenges. Compared to ening environmental policy and natural resource other countries, IDA countries are most dependent management. In terms of areas of focus, IDA credits on natural resources and are most exposed to the have been directed in large part to water resources impacts of environmental degradation. Over the past management (29 percent) and pollution management twenty years, IDA countries experienced the highest and environmental health (22 percent). rate of deforestation, losing an average of almost 50,000 sq km of forest area annually. The level of rEsuLts urban air pollution in IDA countries is among the The following projects exemplify what has been highest, and the access to freshwater resources is achieved with IDA financing: among the lowest. Though many environmental • In the India Karnataka Watershed Develop- challenges of the past decade will persist into the ment Project (IDA US$100 million), IDA played a next, recent developments – such as the energy, key role in helping the government design a food price, and financial crises, and climate change project to test new participatory approaches for – have substantially changed the context in which integrated watershed planning and implementa- IDA operates and requires a fresh approach to tion. Results include soil and water conservation environmental sustainability. works completed on over 200,000 hectares (ha), improving average crop yields by about 24 percent and broadening crop diversity. • The Bosnia and Herzegovina Solid Waste Projects 1 & 2 (IDA US$66 million total), target people’s exposure to garbage in open dumps, which is one of the most serious public health risks in urban areas. With six regional landfills 14 | IDA at WORK: Environment and Natural Resources Management established by the end of the first project in 2009, MovING ForWArD almost half of the country’s population is benefit- The goal of the new WBG Environment Strategy is ing. The Nepal Power Development Project (IDA to work with developing country partners to address US$9.3 million), launched in 2003, features a new and persistent environmental challenges while Micro-Hydro Village Electrification component that working towards sustainable economic growth and has successfully increased rural access to poverty eradication. The new Strategy has three renewable energy sources and formed a solid components: (i) transforming growth paths; foundation for scaling up impact. Steady expan- (ii) leveraging natural resources for growth and sion of community-managed micro-hydro poverty reduction; and (iii) managing the environmen- systems has provided coverage to about 40,000 tal risks to growth and development. Transforming households in 40 target districts. growth paths implies accelerating the diffusion of less environmentally harmful technologies. The second IDA has also prepared an average of 36 Analytical component recognizes that natural resources are a and Advisory Activities a year over the past three form of capital, just like produced, human, and social years, focused on environment and natural resources capital, and thus contribute to well-being. Finally, the management. Among these, Country Environmental third component recognizes the need to make Analyses have provided the analytical basis to growth and development resilient to environmental integrate environmental considerations into projects risks. and programs the Bank offers to support developing countries. pArtNErs IDA borrower countries take a leadership role in preparing strategies that establish the priorities for donor support. In each country, IDA works with international and local development partners to ensure that the strategy is carried out in a coherent way and that IDA focuses on areas where it has comparative advantage. With respect to environmen- tal sustainability, IDA mobilizes additional financial resources and coordinates assistance with the GEF, bilateral agencies, and foundations. IDA also works closely with environmental nongovernmental organi- zations through partnerships and implementation agreements. The full sector notes that are summarised here can be found at IDA at WORK: Environment and Natural Resources Management | 15 www.worldbank.org/sustainabledevelopment/idaresults IDA at WorK: extractive Industries transparency Initiative The World Bank works to promote transparency, rEsuLts accountability, and good governance in the use of oil, Nigeria became the first EITI-implementing gas, and mining revenues in resource-rich countries country with a statutory backing for implementing through the Extractive Industries Transparency EITI with enactment of the Nigeria EITI Act in May Initiative (EITI). From an initial seven countries in 2007. Reconciliation following the initial audit report 2004, the initiative has grown to include 25 IDA reduced the discrepancy between the actual countries that are now in various stages of imple- revenues paid to and reported by the government to mentation. EITI activities have helped improve US$16 million from US$250 million. disclosure and reconciliation of extractive industries Liberia launched its EITI process in 2006-2007 revenues paid and received by governments, and and issued its first EITI reconciliation report in have often set the stage for wider sector reform, February 2009, covering the period June 2007-2008. such as public financial management or institutional The government expanded the Initiative to include reforms. the forestry sector and has reached out to help EITI implementation in Sierra Leone. Ranking for Liberia in CHALLENGE Transparency International’s Corruption Perception Approximately 3.5 billion people live in countries Index moved up to 97 out of 180 countries in 2009 rich in oil, gas, and minerals. However, historically, from 137 out of 158 countries in 2005, which has resource-rich developing countries have shown a contributed to an improved investment climate for below-average growth performance, and many have the extractive industries sector. suffered from endemic corruption and persistent Mongolia’s mining law of 2006 has an article poverty due to weak governance and lack in trans- obliging companies engaged in extractive industries parency. The EITI, launched in 2003, promotes and to report their payments to the government. In 2007, supports improved governance and transparency in a government resolution mandated the government resource-rich developing countries through the full institutions to report and be active in the EITI pro- publication and verification of company payments cess. While the government reported on revenues and government revenues from oil, gas, and mining. from 134 companies for 2006-07, it increased to 186 companies for 2007-08. Private companies are ApproACH engaged in the EITI with leading mining and explora- The EITI was launched with two main objectives, tion companies reporting. Twenty-five participated in namely: (i) to disclose and reconcile extractive the first reconciliation, 38 in the second, and 46 will industries revenues paid to and received by govern- report in the third. The reconciliation following the ments, and (ii) to promote and strengthen a multi- initial audit report in February 2008 reduced the stakeholder approach that includes governments, discrepancy from MNT 25 billion1 to MNT 775 million companies, and civil society. To achieve these twin in the second report in November 2009. The govern- objectives, each participating country has to issue a ment is presently in the process of drafting an EITI reconciliation report to which the country’s multi- law and strategy for 2010-2014. stakeholder group has agreed. After this has been accomplished, the report is submitted for validation to an independent auditor. 1 As of September 15, 2010, MNT 25 billion = $18.8million; MNT 775 million = $0.6million. 16 | IDA at WORK: Extractive Industries Transparency Initiative pArtNErs a freestanding objective and as a platform for From FY2005-2010, 13 donors (Australia, furthering the reforms agenda and moving toward Belgium, Canada, the European Commission, greater accountability and good governance and Finland, France, Germany, the Netherlands, Norway, management. In this respect, both IDA and the Spain, Switzerland, the United Kingdom, and the multi-donor trust fund are piloting programs of United States) have contributed almost US$31 ongoing support that aim to: (i) help countries to million to the MDTF. The trust fund donors partici- consolidate and deepen the EITI; and (ii) continue the pate in a management committee (chaired by the governance reforms building on the platform of EITI World Bank) that reviews and approves the overall structures and transparency. work program for use of trust funds. In addition to the bilateral trust fund donors listed above, the World Bank works closely with the private sector (such as International Council on Mining and Metals, Standard Life Investments), civil society organizations (such as Open Society Forum Mongo- lia, Green Advocates Liberia, Global Witness, Revenue Watch Institute); other multilaterals (such as the International Monetary Fund, the Inter-American Development Bank, the African Development Bank, the Asian Development Bank, the European Bank for Reconstruction and Development and the European Investment Bank), European Union, African Union, and the Organisation for Economic Co-operation and Development in promoting and implementing EITI. MovING ForWArD EITI is a core part of the World Bank Group strategy for oil, gas, and mining and the Group’s Governance and Anti-corruption Strategy of 2007. IDA, with the support of the trust fund donors, is well-positioned to meet country demand and to support countries in their goals of better governance in oil, gas, and mining sectors, beyond the EITI. Further, country programs and individual Country Partnership Strategies in IDA countries are increas- ingly emphasizing implementation of the EITI as both The full sector notes that are summarised here can be found at IDA at WORK: Extractive Industries Transparency Initiative | 17 www.worldbank.org/sustainabledevelopment/idaresults IDA at WorK: Global Food crisis response The sudden spike in food prices during 2008 brought allowed client countries to choose a mix of budget with it civil unrest in many countries, and the threat of support, social protection, and investments to reversal of hard-won progress for many of the support short- and medium-run food supply world’s poor. By mixing fast-track funding with trust response. These options addressed the immediate fund grants, the International Development Associa- needs of the poor while also embracing policies and tion (IDA) was able to help millions of people con- approaches consistent with the need for agricultural fronting the crisis while also supporting reforms and systems to better prepare for similar threats in the policies in countries determined to prevent a repeat future. of such a shock in the future. rEsuLts CHALLENGE Support for short and medium term food supply International grain prices increased significantly in response measures are estimated to have reached early 2008, resulting in sharp increases in staple food 5.5 million farm households. Support for social costs in many developing countries. Soaring food protection and nutrition programs is estimated to prices were a contributing factor to civil unrest in already have positively impacted almost 2 million. nearly 40 countries. Prices of inputs for food produc- • In Nepal, the Social Safety Nets project employed tion such as fuel and fertilizer also tripled after 168,263 workers through food and cash-for-work January 2008, undercutting the profitability of many programs, providing food for approximately smallholder producers even as their own ability to 940,000 beneficiaries across 28 food insecure feed their families was decreasing. The spike in food districts. Between November 2008 and June prices in 2008 risked reversing progress in reducing 2009, 94 percent of beneficiaries have reported malnutrition and the likelihood of meeting the an increase in their food security. Millennium Development Goal of halving the propor- • In Ethiopia, an IDA grant and credit of US$250 tion of people suffering from hunger. A recent World million for a Fertilizer Support Project provided the Bank study confirmed that the incidence of under- government with foreign exchange resources to nourishment increased by 63 million people in 2008 facilitate the import of fertilizer for the 2009 due to the jump in global food prices. Food price production seasons. A total of 510,000 tons of volatility continues with smaller spikes, as witnessed fertilizer was procured with IDA funding for the in August 2010. 2009 production season. An additional US$25 million was disbursed for the Ethiopia Productive ApproACH Safety Net program to provide cash and in-kind Immediate support from the international commu- transfers to food insecure households. House- nity was required to reduce the impact of high and holds with sufficient labor undertook public works volatile food prices on the poor and vulnerable and to while those without received direct support. An increase country resilience to future supply and estimated 550,000 people benefited from this market shocks. The approach set out by IDA’s program in 2009. Global Food Crisis Response Program (GFRP) 18 | IDA at WORK: Global Food Crisis Response • In Tanzania, an overall IDA credit of US$220 MovING ForWArD million is providing support to 95 small-scale IDA’s engagement under the GFRP is based on irrigation sub-projects and three soil fertility its key strengths in providing integrated solutions to management demonstrations. It is also financing food security concerns as well as its strong presence half of the subsidy for agricultural inputs through on the ground in many of the most vulnerable the National Inputs Voucher Scheme. The countries. With the decline in food prices from the vouchers were distributed to 1.5 million farmers. highs of 2008, clients are shifting their attention The IDA credit in Tanzania of also provides toward addressing structural agricultural issues. The support to safety net activities in targeted villages World Bank Group prepared an action plan for in 40 food insecure districts on the mainland and support to agriculture for fiscal years 2010-2012 that in Zanzibar. As of early September, 309 commu- projects a significantly increased support to agricul- nities have been reached with 61,526 direct bene- ture and related sectors, from a baseline average ficiaries, of whom 49 percent are female. support in FY2006-08 of US$4.1 billion a year to between US$6.2 billion and US$8.3 billion annually pArtNErs over the next three years. Since the inception of GFRP, the World Bank has successfully mobilized over US$320 million in external funds to support the full range of activities available under the GFRP in both low- and middle- income countries. A Multi-Donor Trust Fund has received contributions from Australia, Spain, the Republic of Korea, Canada, and the International Finance Corporation. Russia and the European Union allocated funds for specific countries. Effective partnerships have fostered successful implementa- tion of GFRP operations and building institutional capacity. UN agencies including the World Food Programme, the United Nations Children’s Fund, and the Food and Agriculture Organization have been involved as partners in GFRP operations in several countries, as have civil society organizations. The full sector notes that are summarised here can be found at www.worldbank.org/sustainabledevelopment/idaresults IDA at WORK: Global Food Crisis Response | 19 IDA at WorK: Information and communication technology The International Development Association (IDA) ApproACH committed US$101 million in support to the ICT IDA has worked with many countries to reform sector in fiscal year 2010, bringing its total commit- their telecommunications sectors. It has provided ment to US$1 billion since 1997. These investments extensive technical assistance to support privatiza- have supported the dramatic improvement in the tion and liberalization and continues to support telecommunications sector in IDA countries. Between capacity-building for governments and regulatory 1998 and 2008, the number of telecom subscribers institutions. In Afghanistan, for example, IDA- in IDA countries has risen from around 1 percent to supported sector reform has resulted in a competi- 30 percent of the population, or more than 300 tive telecommunications market that has attracted million subscribers. Mobile phones are boosting over US$1.2 billion in private investments, improving economic productivity, raising incomes of families access to ICT services and reducing prices.IDA and small businesses, and providing an important support is evolving to reflect the new challenges source of government revenue. faced by the sector. Technical assistance and investment operations are increasingly focusing on CHALLENGE closing the rural infrastructure gap, investing in ICTs have a positive impact on economic growth. broadband infrastructure, using ICT to improve the It is estimated that a 10 percent increase in tele- delivery of public services and supporting the growth phone subscribers per 100 people contributes to 0.6 of the information technology (IT) and IT-enabled percent GDP growth around the world, and every ten services industry. percentage point increase in broadband subscribers IDA is also increasingly focusing on supporting per 100 people is associated with 1.38 percentage governments to use the improving ICT infrastructure points additional GDP growth in developing coun- to deliver public services and to develop the IT tries. Access to information and communications industry as a source of economic growth and technology in IDA countries is boosting economic development. productivity, raising incomes of families and small businesses, and providing an important source of rEsuLts government revenue. Many IDA countries are also World Bank support in the ICT sector spans a using ICTs to improve the quality and efficiency of wide range of activities and includes many notable public service delivery. successes. One-third of the population in IDA countries • In Afghanistan, the sector reforms support by currently lives beyond the reach of ICT networks - a IDA (US$22 million IDA credit) contributed to an major infrastructure gap that needs to be filled. increase in the number of telephone subscribers Although prices have fallen over the last few years, from 57,000 in 2002 to almost 13.4 million by they remain high in many IDA countries, putting ICT 2010, raising total telephone penetration (fixed beyond the economic reach of the poor. Advanced plus mobile) of 0.2 percent in 2002 to over 27 ICT services such as broadband need to be more percent in 2008. affordable and access needs to be widened. At the • In Nicaragua, the privatization of the incumbent same time, the IDA countries face the challenge of telephone operator in 2001 and the introduction leveraging the new ICT infrastructure to improve the of full competition in the sector in 2005 helped delivery of public services and to build on it as a bring about a ten-fold increase in mobile subscrip- source of economic growth. 20 | IDA at WORK: Information and Communication Technology tions by 2010. Total telephone penetration (fixed administration system. The World Bank is supporting plus mobile) increased from 6 percent in 2001 to this trend, working across sector departments to 25 percent in 2005, and ultimately to over 60 introduce modern technology into the public sector. percent in 2008. IDA will also see more support for governments to • In Ghana, the government’s proactive policies, develop their IT and IT-enabled business sectors. In combined with support from IDA and other a recent study by the World Bank, it is estimated that development partners, contributed to a competi- only about 20 percent of the potential market for tive and vibrant industry with a telephone penetra- offshoring of IT and IT-enabled services has been tion of over 60 percent. The US$84.7 million realized. One of the main constraints for developing World Bank-funded eGhana project is building on countries is the lack of skilled manpower. IDA is the IT-enabled services industry, including supporting developing countries in growing their support to develop a Business Process Outsourc- talent pool through skill assessments, training and ing center. Over 1,000 jobs have been created in certification programs. the industry during the last two years. pArtNErs The Bank has worked extensively with other partners in the ICT sector. The preparatory work on the Eastern African Submarine System (EASSy) was done in partnership with other donors and the funding was done jointly by the IFC and other development finance institutions. IDA and the African Development Bank are also working together on the “Central Africa Backbone� program. MovING ForWArD Improving broadband infrastructure is an increas- ingly important part of many countries’ economic strategy. IDA is supporting countries through a combination of technical assistance and invest- ments, with a focus on the core area of the broad- band value-chain. The growth of low-cost connectivity provides a major opportunity for countries to improve their public service delivery. Countries like Rwanda and India are already leading the way by using ICTs to improve the management of rural health centers and introducing IT to the management of the land title The full sector notes that are summarised here can be found at IDA at WORK: Information and Communication Technology | 21 www.worldbank.org/sustainabledevelopment/idaresults IDA at WorK: land tenure policy Land tenure policy reform is an important part of the IDA assistance on land tenure issues began International Development Association’s (IDA) overall roughly 15 years ago. IDA Projects with land effort to address poverty and growth constraints, fos- administration as a major theme has been growing ter better natural resource management, and from zero prior to 1995 to some US$73 million per promote gender equality. Global experience shows year in 2006-2010. The pipeline of dedicated land that actions to improve land security, access, and administration projects in IDA countries amounts to transferability have a number of economic and social some US$60.0 million. benefits. In addition to project-specific support, the World Bank continues to use its technical expertise to work CHALLENGE with governments to strengthen their land adminis- Land tenure sector work in low-income countries tration institutions and assess the policy framework faces many challenges, including weak public land for large-scale land acquisition; and uses its analyti- institutions and often incomplete policy and legal cal base to provide information. The report, Rising frameworks. The breakdown of state ownership and Global Interest in Farmland: Can it Yield Sustainable the rapid privatization of land in the former Soviet and Equitable Benefits? is one recent example of the bloc in the late 1990s-early 2000s, among other commitment to informing debate and understanding factors, drove a need for land administration capac- of agro-investment trends and their impact on ity. Similarly, in East Asia and the Pacific, Sub- economic growth and poverty reduction. Saharan Africa, and Latin America and the Caribbean a new openness to market-driven development has rEsuLts created a need for land administration capacity. This Some specific results achieved with IDA support same process is now occurring in South Asia. In are listed below: addition, the continued increase in food prices and • The Honduras Access to Land Pilot Project cultivation of lands for bio-fuel uses prompted a (FY01) demonstrated the financial viability of sharp increase in commercial pressure on cropland, community-based land reform with private grasslands, forested areas and water resources in financing of land acquisition; 990 families acquired both developed and emerging countries. 2,400 ha; 97 percent of farmers able to repay; and farmer incomes doubled in four years. ApproACH • The Malawi Community Based Rural Land The World Bank approach emphasizes policy Development Project (FY04) builds on the new dialogue, research, investment and operational land policy adopted by the country in 2002 with support for the resolution of land tenure issues, IDA support. By May 2010, 15,000 poor families institutional capacity building, long-term engagement had access to land. Gross margins per hectare with governments and civil society, and the sharing have risen ten-fold for hybrid maize from the of best practices across countries and regions. pre-relocation baseline. 22 | IDA at WORK: Land Tenure Policy • The Sri Lanka North East Housing Recon- The World Bank has also been working with the struction Program (FY05) facilitated the recon- Food and Agriculture Organization, the International struction of 31,200 houses in the North East Fund for Agricultural Development and UN Confer- region over a four-year period. This has allowed ence on Trade and Development, and more recently the return of displaced populations in the North with an expanded set of government, private and East and the regularization of land titles to other stakeholder partners, to advance responsible targeted beneficiaries. investment through the formulation of a set of seven • The Bosnia and Herzegovina Land Registra- core principles for responsible agro-investment that tion Project (FY07), assisted development and respects rights, livelihoods, and resources. adoption of new service standards in order to help improve services, transparency, speed and MovING ForWArD accuracy of registrations. Registration took many The World Bank will continue to work with months prior to commencement of the project in countries on diagnosis, policy dialogue, operational 2007, but now 80 percent of all transactions are and financial support in an effort to establish land resolved in five days or less and mortgages are administration systems that help protect the rights of registered within a day in 16 of the 47 courts, the poor, induce better national resource manage- including Sarajevo. ment, increase investment, and help shift towards a • A US$5.0-million land component under the more diversified economic structure. Ethiopia Sustainable Land Management Project (FY08) has contributed to a successful home-grown project that has, over a three-year period, awarded land certificates to more than 25 million parcels. In addition, this has also empow- ered women (e.g., by allowing them to enforce their land rights in case of inheritance or divorce) and reduced conflict. pArtNErs The World Bank has been contributing to recent global initiatives, such as the High Level Commission for Legal Empowerment of the Poor, the Global Land Tools Network, and the International Land Coalition. It also collaborates closely with a wide range of multi- lateral organizations, and with the private sector through the International Federation of Surveyors, to organize regional workshops and capacity building events. The full sector notes that are summarised here can be found at www.worldbank.org/sustainabledevelopment/idaresults IDA at WORK: Land Tenure Policy | 23 IDA at WorK: mining The International Development Association (IDA) has sector became an essential part of the reform effort. supported 31 projects of mining sector reform in 22 Since the turn of the new century, community and countries in the last two decades. The reforms have regional development issues have entered into the contributed to an increase in investment in the mining dialogue and assistance, including the impacts on sector and related economic indicators such as women and other frequently disadvantaged groups. exports, fiscal revenues and gross domestic product More recently, the role of the mining sector as an (GDP) in most recipient countries. The critical next engine of economic development has become an steps are promoting policies and programs to important aspect of IDA assistance. In some coun- strengthen governance and the links to the rest of tries, the proper management and deployment of the the economy to ensure that the benefits are sus- sector’s fiscal revenues are the main factors driving tained. development. In other countries, the emphasis is on the mining sector itself as the catalyst for industrial- CHALLENGE ization. Many countries now view the mining sector as a From 1988 to 2010, there have been 31 IDA- key engine of economic development. However, supported projects in mining sector reform. Almost there is the risk that mining operations turn into two-thirds of the operations have been in Sub-Saha- socio-economic enclaves as well as cause environ- ran Africa, with most of the rest in East Asia and the mental damage. Attention to social and environmen- Pacific and Latin America. Total funding has been tal considerations, and government commitment to US$1.07 billion, although the average project funding good governance and transparency is important. of US$33.4 million masks a wide variance, ranging Countries, communities and companies face tough from US$1 million (Solomon Islands, 2010) to questions about opportunities and risks as they US$200 million (Mexico, 1991). Over the last decade, develop steps to ensure responsible approaches there have been 65 analytical and advisory activities toward mineral resource development. that include a focus on mining and other extractive industries reform in IDA countries. ApproACH In response to this challenge, IDA’s approach to rEsuLts mining sector reform has evolved substantially over Some specific results achieved with IDA support the last 20 years with each new phase of IDA are as follows: support building on the past. In the early years, the • From 1994-2000, IDA supported mining sector emphasis was on reforming policies, legislation, and Technical Assistance (TA) in Tanzania in the mining sector institutions to increase private invest- areas of mining legislation and regulations, mining ment and related economic indicators such as export fiscal regime, environmental policies and enforce- earnings and tax revenues. By the mid-1990s the ment, divestiture of State owned enterprises, and need to improve environmental performance of the strengthening institutional capacity. The foreign 24 | IDA at WORK: Mining direct investment in the mining sector increased pArtNErs to an average of US$250 million per year in IDA has worked closely with various stakeholders 2001-08 from less than US$10 million per year in in implementing mining sector reform. The World 1990-99. Since 2009, the Bank is supporting the Bank-administered Multi-Donor Trust Fund, EITI, government to strengthen its capacity to manage launched in 2003, promotes and supports improved the mineral sector in order to improve the socio- governance and transparency in resource-rich economic impacts of mining. developing countries through the full publication and • IDA has supported mining sector reform in verification of company payments and government Madagascar since 1998, with an emphasis on revenues from oil, gas, and mining. The fund is attracting investment, improving the sector’s presently supporting 25 IDA countries that are in environmental performance, and ensuring that the various stages of implementation of the EITI process. sector’s benefits are widespread. The reforms fostered a large increase in activity, including the MovING ForWArD development of large mining operations in ilmenite Most new IDA technical assistance in the mining and nickel/cobalt. Given the country’s wide- sector is focused on specific areas of work that will spread poverty, the government undertook a increase local community benefits and improve strategy centered on strengthening local gover- governance at national and sub-national levels. Work nance, decentralizing fiscal revenues, and is ongoing in a number of areas: (i) enhancing the providing technical assistance to community roles of foundations and community development associations and municipal governments for the agreements in furthering sustainable development integration of mineral resources management in around mining communities; (ii) increasing the their development plans. capacity of local governments to manage increased • Mongolia is rich in natural resources, principally revenues from mining; and (iii) managing fiscal gold, copper, coal, uranium and oil. IDA-support- revenues from the mining sector to enhance their ed sector reform, which began in 1997, resulted contribution to sustainable development in regions in the adoption of a modern mining law that affected by mining activities. encouraged increased mineral exploration and exploitation. The mining sector has been a key driver of the country’s GDP growth of 7.8% per year from 2000-08. IDA support to Mongolia in the mining sector is now focused on using mining generated fiscal resources for fostering sustain- able development in the regions affected by extractive industry activities. The full sector notes that are summarised here can be found at www.worldbank.org/sustainabledevelopment/idaresults IDA at WORK: Mining | 25 IDA at WorK: social Development Social development adopts an approach that ApproACH focuses on the need to “put people first� in develop- To meet these challenges, IDA is making a ment processes. Overcoming poverty is not just a substantial contribution through: matter of getting economic policies right – it is also (i) Undertaking better social and political risk analysis, about promoting social development which empow- including poverty and social impact analyses; ers people by creating more inclusive, cohesive, and (ii) Building a greater understanding of the social accountable institutions and societies. An approach implications of climate change; that integrates these principles is critical to address- (iii) Building links between citizens and their govern- ing some of the International Development Associa- ment representatives and promoting more tion’s (IDA) most challenging issues such as recon- responsive and responsible government struc- structing post-conflict and fragile states, proactively tures; adapting to climate change, promoting good (iv) Enhancing the capacity of communities for governance and accountability, and reaching out to poverty reduction through the Community Driven the poorest countries. Development (CDD) approach; (v) Designing inclusive activities that increase CHALLENGE societies’ resilience to violent conflict; Sustainable development requires balancing the (vi) Ensuring that programs have robust social needs of present and future generations. Social safeguards and that vulnerable groups are not sustainability is a critical aspect of achieving develop- only protected but also significantly benefit from ment that significantly improves the lives of the the project and the development process. world’s poorest people. There are several changes affecting the IDA countries, including increased New IDA lending commitments for social develop- volatility in key markets, climate change and its social ment themes have averaged some US$700 million dimensions, and the problems of ‘fragility,’ and the annually over the past six years. Between fiscal years implications for poor people. IDA has supported 2005-10, IDA’s social development portfolio has adapting to the changing environment through focused on participation and civic engagement applied research and the development of tools and (including CDD), accounting for half of the new methods for understanding the social dimensions of commitments. Conflict prevention and gender were global change. At the same time, there is a need to the next largest areas of new lending. strengthen our understanding of the ways in which development action can build social resilience in the rEsuLts face of the negative impacts of change. One of IDA’s main contributions is bringing attention to the important role that social analysis plays in promoting socially sustainable development. High quality social analysis is essential to fulfilling the World Bank’s mandate for effective poverty reduc- 26 | IDA at WORK: Social Development tion. Another of IDA’s goals is to ensure that projects pArtNErs deliver sustainable outcomes for poor people in IDA is well positioned to use its convening power contexts where IDA projects have the potential to and partnerships to advance the social agenda. For cause disruption to their lives and livelihoods. Project analytical work, it has partnered with local and global design, appraisal and implementation processes academic and research networks and with multilat- support careful identification and addressing of risks, eral and bilateral organizations on fragility and mitigating adverse impacts and promoting positive conflict, gender, and climate change issues. Global impacts and development opportunities. The Bank’s non-governmental organizations are also partners in performance ratings on addressing social develop- social development work ment issues, including safeguards, during project preparation and appraisal has improved from 67 MovING ForWArD percent Moderately Satisfactory or higher in an The IDA16 Replenishment will be guided by three Assessment in 1998 to 94 percent in an Assessment priorities, all of which are relevant for the Bank’s in 2009, both by the Bank’s Quality Assurance forward strategy in Social Development: gender Group. According to an internal World Bank evalua- equity, country fragility, and climate change. The tion, projects that addressed at least one social development of a ‘crisis’ lending window in IDA is development dimension (such as community driven also significant. The development of new instruments development, conflict, culture, gender, indigenous for climate finance is likely to continue to increase people, non-governmental organizations (NGOs)/civil demand for expertise in designing socially sustain- society, participation, resettlement and social funds, able operations – as many of these operations will etc.) were rated three to four percent higher on require sensitivity to changes in the livelihoods of outcome, sustainability, and institutional develop- forest-dependent peoples to be effective. ment impact than the overall average of Bank projects over a 30-year period. Projects that addressed multiple social development dimensions had an even higher success rate. As an example of the results of a social analysis, a Poverty and Social Impact Analysis (PSIA), carried out in Yemen in 2007 analyzed the implementation constraints of the government’s water sector reform strategy. Findings suggested a need for reforms in water resource management and irrigated agricul- ture, promoting water productivity particularly for poorer farmers, and correcting the sequence of reforms. Government, donors and stakeholders agreed to revise the reform strategy and implement recommendations through a multi-donor Water Sector Support Program. The full sector notes that are summarised here can be found at www.worldbank.org/sustainabledevelopment/idaresults IDA at WORK: Social Development | 27 IDA at WorK: transport Transport is a crucial enabler for economic growth, ApproACH poverty reduction and attaining the Millennium Because of its work on multiple complex transport Development Goals (MDGs). The World Bank’s programs, IDA has developed a strong capacity for Transport Business Strategy for 2008-2012 stresses diagnosing bottlenecks and recommending solutions the need for transport to be safe, clean, and afford- to encourage institutional innovation. Over the last 10 able. With International Development Association years, IDA’s main transport priorities have been the (IDA) funding, over the last ten years, approximately construction, rehabilitation and maintenance of roads 260,000 kilometers (km) (150,000 km of rural and and highways, representing 74 percent of commit- 110,000 km of non-rural) roads and 10,700 bridges ments for the sector. IDA lending has addressed poli- were constructed, rehabilitated or maintained, cy and institutional development. Between FY2001- benefiting about 75 million people. 2010, IDA funded US$12.6 billion for transportation, out of which US$9.3 billion was provided for roads CHALLENGE and highways. About US$764 million went into The relationship between transport and poverty railways, with 88 percent for the Africa region. In reduction is neither straightforward nor automatic. fiscal year 1990, IDA also started Development Policy However, development in other sectors is often Lending (DPL) with transport components, with the hampered without attention to transport issues. objective of supporting transport sector policies and Improvements in transport have the greatest impact institutions. Since its inception, IDA approved 119 on poor people when made in concert with activities DPLs with transport components. in other sectors. An estimated one billion people, or about 40 percent of the rural population in countries rEsuLts receiving IDA support, lack direct access to an IDA has benefitted about 75 million people, all-season road. Urban transport systems face major through the construction, rehabilitation and mainte- challenges due to population growth, vehicle owner- nance of about 260,000 km (150,000 km of rural and ship, and the fragility or even absence of public 110,000 km of non-rural) roads and 10,700 bridges transport systems. A multi-modal approach is over the last ten years. required to improve passenger and freight mobility. • In Vietnam, the IDA-supported Second Rural Enhancing local communities’ capacity to deliver Transport Project (US$103 million) supported the sustainable projects and strengthening of public rehabilitation of some 7,600 km of roads and 26 institutions to plan, arrange and implement appropri- km of bridges. Usage increased by 70 percent ate investments have been other ongoing challenges between 2002 and 2004 with an accompanying that IDA is addressing. 12 percent drop in travel time. 28 | IDA at WORK: Transport • The establishment of a road fund in Ethiopia in MovING ForWArD 1997 substantially increased maintenance IDA is now looking towards a broader framework funding. The condition of roadwork improved of support: from project support for financing rural significantly. The overall proportion of roads in roads to approaches that support broader govern- poor condition dropped from 53 percent in 1995 ment programs and policy reform. Railways and to 40 percent in 2002 and 28 percent in 2008. urban transport portfolios have risen and are likely to For regional roads alone, the share fell from 60 continue to increase. The experience in rural trans- percent to 37 percent. port in particular has shown how important it is for • The IDA-supported rural infrastructure project in transport staff to engage effectively with other Senegal included substantial road improvements, disciplines in order to achieve the MDGs and ensure helped strengthen decentralization, and financed that there are equitable and sustained benefits to the micro-projects covering water, schools, and poor. Moreover, the World Bank Group is active in livestock, among other things. Beneficiary the reduction of the transport carbon footprint and households in the 110 participating rural commu- the transport sector strategy encourages green nities reported a 25 percent increase in incomes. transport solutions. pArtNErs IDA’s global reach and experience, and its ability to work across disciplines and across different modes of transport, have laid the foundation for various types of collaboration. For instance, IDA support has addressed critical multi-modal and multi-sectoral bottlenecks: the 1999 completion of the Jamuna Bridge in Bangladesh, a project cofi- nanced by IDA, the Asian Development Bank and the government of Japan, has boosted traffic, employment and trade by facilitating transport of passengers, freight, and electricity, literally linking northwest Bangladesh to the rest of the country. IDA also has strong synergies with other parts of the World Bank Group, such as the International Finance Corporation. The full sector notes that are summarised here can be found at www.worldbank.org/sustainabledevelopment/idaresults IDA at WORK: Transport | 29 IDA at WorK: urban Development Many developing countries are experiencing a (iv) Urban land, housing and planning; and profound population shift, from rural to urban areas (v) Urban environment, climate change, and with the result that their development challenges are disaster management. increasingly related to rapid urbanization. The International Development Association (IDA) has rEsuLts responded by channeling assistance to priority areas Three short examples illustrate tangible results of urban development, and by dramatically increasing measured during last fiscal year 2010: the number of projects and lending volume for urban • In Rwanda, the Urban Infrastructure and City development over the last decade. Management project (2005-2009) focused on delivering new roads, and social and economic CHALLENGE infrastructure (such as schools, a healthcare Over the next 20 years it is projected that over 95 center, youth center, and a district administrative percent of population growth in developing countries building). This project, funded by a US$20-million will take place in urban areas, with urban populations IDA grant, increased the number of residents of expected to increase to 3.9 billion by 2030 from 2.6 Kigali with access to paved roads to 488,322 by billion in 2010. In Africa and Asia alone, urban the beginning of 2010 from 355,800 in 2005. populations will increase by an average of 62 million Greater accessibility helped local vendors reduce people each year, and by 2030, 56% of the develop- costs, and pass on the savings to consumers in ing world’s population will be living in urban areas. the form of prices of staple foods being reduced This demographic transformation raises important by 18 percent in several neighborhoods surveyed. questions about how to deliver development assis- One particularly successful element of the project tance in the decades ahead. was its focus on contracting local firms to carry out the construction works, wherever they had the ApproACH capacity. By project completion, 48 percent of The World Bank, as described in its new Urban works had been executed by local contractors. Strategy document, aims to respond to both sides of • In Honduras, the Regional Development in the the challenge presented by urbanization: first, to Copán Valley Project (2003-2009) utilized cultural assist governments in proactively preparing for new heritage as a foundation for local economic urban growth; and second, to help achieve better development. The project, funded by an IDA credit service delivery for urban poor populations. With an of US$13.2 million plus contributions from the eye on both these objectives, IDA provides support governments of Honduras and Japan, engaged on urban development is provided through five with several parts of the population: (i) indigenous business lines: peoples and women, through the provision of (i) City management, finance and governance; grants and capacity development activities; (ii) the (ii) Urban poverty and slum upgrading; inhabitants of six municipalities proximate to (iii) Cities and economic growth; 30 | IDA at WORK: Urban Development archeological parks, by helping to foster local MovING ForWArD economic growth through seed grants programs There are several priorities for IDA in urban and training; and (iii) with the public administra- development. Foremost is to encourage countries to tion, through increasing revenues and improving focus on urban development policy at the national institutional capacity for urban management and level, rather than leaving it as a matter for city govern- heritage preservation, and assisting with rehabili- ments. This is because national economic success tating and developing the archeological sites depends on having a system of productive and themselves. The project helped facilitate: an efficient cities. And far from ‘competing’ for resourc- increase in expenditures by tourists from US$117 es with rural development (as urban development is per person in 2004 to US$697 per person in 2008 often characterized), urbanization will in fact spur and spurred a six-fold increase in annual munici- demand for agricultural products and encourage pal tax revenues between 2004 and 2008. The greater productivity in fields and farms. Thus, IDA project was one of the contributing factors in an 8 will be continuing its support of the five business lines percent annual growth rate in per capita income above. (compared to the national rate of 4 percent). • In Laos, the Second Land Titling Project (2003- 2009) continued work on a long-term national land titling program aimed at extending secure land ownership, plus developing land administra- tion and valuation systems, including a cadastral mapping system. IDA contributed a credit of US$14.8 million to the project, for work in urban, peri-urban and rural areas. The project prioritized equal access of women to land office services and land titling activities, and managed to issue 148,152 titles to women and 92,653 to men, and the number of formal land transactions (sales and rentals) was more than doubled. The revenue to governmental land offices, accruing from land taxes and fees, increased by 86 percent in real terms between 2003 and 2009. pArtNErs Urban development projects in IDA countries are often implemented in collaboration with, and often confinancing by partner organizations. The full sector notes that are summarised here can be found at www.worldbank.org/sustainabledevelopment/idaresults IDA at WORK: Urban Development | 31 IDA at WorK: Water resources International Development Association (IDA) funding Total IDA funding for water resources manage- for water resources management amounted to about ment amounted to about US$1.5 billion, across 110 US$1.5 billion across 110 projects approved during projects approved during FY00-FY10. IDA funding for fiscal years 2000-10. IDA funding for this area has this area amounted to US$170 million in FY10. In responded to the need to address both management FY10, most spending occurred in South Asia (57 and development issues by promoting integrated wa- percent) followed by East Asia and Pacific (27 ter resources planning, and by tackling institutional percent), Africa (15 percent), and Europe and Central reforms along with infrastructure upgrades for various Asia (1 percent). sectors. These include flood management, hydro- power, agriculture water management, pollution rEsuLts control, transboundary river management, climate Given the nature of water resources management, change adaptation and mitigation. outcome measures are hard to aggregate across IDA projects. However, on-the-ground results related to CHALLENGE IDA activities can be highlighted in six critical areas. Water is essential for socio-economic develop- • Policy and legal framework. In Tanzania, IDA ment and for maintaining healthy ecosystems. The funding supported the development of a National pressure on water resources is intensifying with the Water Policy and which subsequently formed the rise in population and economic development that basis for a National Water Sector Development calls for enhanced allocations of groundwater and Strategy. A follow up project helped the country surface water for the domestic, agriculture and prepare integrated river and lake basin manage- industrial sectors. This has led to unreliable supplies ment plans including the sustainable exploitation and social tension in water scarce countries. Low- of a recently discovered deep aquifer with income IDA countries account for about 80 percent potential to supply Dar es Salaam. of countries facing economic or physical water • Institutions and capacity-building. At the local scarcity. level, IDA funding has expanded the involvement of local stakeholders in water management ApproACH though the creation of water user associations. In IDA is well positioned to play a key role by working Pakistan, the North West Frontier Province across sectors, institutions and countries involved in On-Farm Water Management Project facilitated water resources management. IDA’s work in the the establishment and operation of 53 Farmer water resources sector is guided by the 2003 Water Organizations and Federation of Water User Resources Sector Strategy. The strategy emphasizes Associations, which are today in charge of the the need to address both management and develop- operation and maintenance of distributaries, and ment issues; tackling institutional reforms and responsible for collecting water service charges. infrastructure upgrades. 32 | IDA at WORK: Water Resources • Trans-boundary river management. In the MovING ForWArD Senegal River Basin, IDA projects have contrib- IDA water resources management lending is uted to more effective management of the expected to continue to expand in the near future as resources of the Senegal River and to the the World Bank’s water strategy, Country Water inclusion of Guinea into the organization for Resources Assistance Strategies, and a renewed IDA responsible for this management, ensuring commitment to infrastructure translate into country integrated water resources management in the programs. There remains a strong need for interest- entire basin. free credits and grants to help low-income countries • Hydropower. In FY10, IDA contributed to addi- finance water resources management activities tional financing for the Felou Hydroelectric Project including policy, institutional and analytical work. in Senegal, Mauritania, Guinea and Mali as a means of increasing access to stable, reliable, and affordable electricity to the citizens of the Economic Community of West African States. • Agriculture. The On-Farm Irrigation Projects in the Kyrgyz Republic (2000-2013) set out to achieve increased crop production through reliable and sustainable water distribution in formerly state and collective farms across seven administrative regions. A core activity has been strengthening services to about 450 water users associations, including training and support. • Flood Protection and Environmental and Social Benefits. IDA-funded flood projects in Uganda, India, Kyrgyz Republic, and Bangladesh enhanced protection of populations, infrastructure and property. pArtNErs The Bank also convenes partners to support innovation in integrated water resources manage- ment, including the Water Partnership Program - a multi-donor trust fund program, coordination of partners in the Nile Basin Initiative, and the Partner- ship for Agricultural Water in Africa has been recently launched. The full sector notes that are summarised here can be found at www.worldbank.org/sustainabledevelopment/idaresults IDA at WORK: Water Resources | 33 IDA at WorK: Water supply and sanitation Overall, access to improved water sources in IDA rEsuLts countries rose to 78 percent in 2008 from 65 percent The population of IDA countries in Sub-Saharan in 1990. To continue delivering sustainable and Africa with access to improved water increased to 57 efficient water supply and sanitation services, IDA percent in 2008 from 46 percent in 1990. Access to projects will emphasize operation and maintenance improved water for all IDA countries improved to 78 activities, and address the technical, social and percent in 2008 from 65 percent in 1990. Access to institutional issues related to sustainability. sanitation still trails behind: with only 37 percent in 2008 compared to 21 percent in 1990. CHALLENGE In IDA borrowing countries, 559 million people Some specific results achieved with IDA support are remained without access to safe water in 2008 and listed below: 1.5 billion people were deprived of basic sanitation. • The Rural Water Supply and Sanitation Project in Demand for adequate sanitation will increase with Tanzania (2002 -2008) aided the national rural expansion of water piped services and household water supply and sanitation program through the water use. construction of hand pumped supplies and small piped schemes, providing over 500,000 people ApproACH access to improved water supply and sanitation Between 1998 and 2010, IDA lending for the services. water supply and sanitation sector averaged US$577 • In rural areas of Indonesia, 600,000 households million each fiscal year. IDA’s lending to the sector and 3,000 schools have benefited from improved reached an unprecedented amount of US$1.67 water supply and sanitation services under the billion in FY2010, a 50 percent increase from Second Water and Sanitation for Low Income FY2009. Communities Project (2000-2010). IDA lending has been concentrated in Africa, • In Bosnia and Herzegovina, the Mostar Water which has received about half of the IDA commit- Supply and Sanitation Project (2000- 2005) ments to the sector since 1998. Most of the remain- improved the city’s water and wastewater ing IDA lending in this sector is focused on Middle services as part of a broader IDA program in a East /North Africa and South Asia, notably India and post conflict environment. By the end of the Republic of Yemen. project, the population benefiting from continuous service rose to 75 percent in 2004 from 59 percent in 2000. 34 | IDA at WORK: Water Supply and Sanitation • An Urban Water Supply Project (1998-2004) MovING ForWArD supported the turnaround of two water utilities in IDA will continue to focus on priorities set during Cambodia. Through the project, 750, 000 people the previous cycle, with Africa remaining a major gained access to water supply services in Phnom region of focus. IDA is expected to increase lending Penh. The number of water supply connections for water supply and sanitation, given the sector’s increased almost nine-fold to more than 105,777 prominence in poverty reduction strategy papers and from 10,777. country assistance strategies. Water and sanitation is • Through the India Karnataka Urban Water Sector currently represented in over 75 percent of poverty Improvement Project (2005-2010), continuous, reduction strategy papers Bank-wide. efficient, and sustainable water service delivery The provision of urban water supply will remain was achieved in select urban areas. About important, fuelled by the rapid urbanization taking 175,000 individuals or 25,000 households benefit- place in many IDA countries. Sanitation and hygiene ted from the project. promotion components in the overall IDA portfolio are likely to increase as previous projects are starting to pArtNErs show results and create demand. The Water and Sanitation Program is a multi- There will be an increased focus on improving donor partnership administered by the World Bank governance so that water and sanitation infrastruc- to support poor people in obtaining affordable, safe ture investments can be operated and maintained in and sustainable access to water and sanitation a sustainable manner. services. The Program works directly with client governments at the local and national level in 25 countries. Current activities include improving the monitoring of water and sanitation utility performance through the International Benchmarking Network database, and piloting of programs to promote sanitation and hygiene at scale. The World Bank and the African Development Bank (AfDB) are committed to working together to support national programs for rural and urban water supply and sanitation in order to reduce transaction costs and maximize the funds that government and donors can contribute to the sector. The full sector notes that are summarised here can be found at www.worldbank.org/sustainabledevelopment/idaresults IDA at WORK: Water Supply and Sanitation | 35 IDA at WORK: Extractive Industries Transparency Initiative | 37 Printed on recycled paper 1818 H Street, NW Washington, DC 20433 USA www.worldbank.org/ida www.worldbank.org/sustainabledevelopment/idaresults