93938 STATE- AND PEACE-BUILDING FUND ANNUAL REPORT THE WORLD BANK FRAGILE AND CONFLICT-AFFECTED COUNTRIES GROUP (OPCFC) ABBREVIATIONS AND ACRONYMS AFR Africa Region EAP East Asia and Pacific Region ECA Europe and Central Asia Region FAO Food and Agriculture Organization FY Fiscal year (July 1 to June 30) IBRD International Bank for Reconstruction and Development IDA International Development Association LAC Latin America and the Caribbean Region MDTF Multi-Donor Trust Fund MENA Middle East and North Africa Region NGO Nongovernmental organization OPCFC Fragile and Conflict-Affected Countries Group (World Bank) SA South Asia Region SPF State- and Peace-Building Fund WDR World Development Report KEY TO THEMES CB Capacity Building CDD Community-Driven Development GVNC Governance MktF Market Formation SUBNAT Subnational Conflict Management VULN Vulnerable Groups (including youth, women, and internally displaced people) i STATE- AND PEACE-BUILDING FUND ANNUAL REPORT CONTENTS FISCAL YEAR 2011 i ABBREVIATIONS AND ACRONYMS 2 INTRODUCTION 3 Fragility and Conflict: The Challenge 4 The State- and Peace-Building Fund (SPF) 5 Moving Forward 6 STATE-BUILDING: PROJECTS IN HIGHLIGHT 6 Piloting a Community Model for Service Delivery 7 Targeting Unemployment and Service Delivery through a Participatory Approach 8 Holistic Approach to Gender-Based Violence 10 Increase Youth Civic Engagement through Volunteerism 12 PEACE-BUILDING: PROJECTS IN HIGHLIGHT 12 Support for Economic and Infrastructure Development 14 Mitigate Conflict through Resource Management 16 Employment Creation for Vulnerable Groups 17 Building a Bridge between Humanitarian and Development Assistance 18 THEMATIC LEARNING ACTIVITIES IN FRAGILE STATES 18 Livelihood Rehabilitation for Internally Displaced People 18 Assessing the Challenges of Subnational Conflicts 20 FINANCIAL SUMMARY TA B LE S A ND AN NE X page 9 BOX 1: Improving the Development Response to Gender-Based Violence 15 BOX 2: Early Engagement to Manage Resource Dependence 18 BOX 3: Response to Drought and Famine Emergency in Somalia 22 TABLE 1: SPF Donors (as of June 30, 2011) 22 TABLE 2: Sources and Uses of Funds (as of June 30, 2011) 23 TABLE 3: Project Disbursements by Year of Implementation (as of June 30, 2011) 24 TABLE 4: Funding Approved by Recipient Type (as of June 30, 2011) 23 FIGURE 1: Percentage of Financing Approved for Projects by Region (as of June 30, 2011) 25 ANNEX 1: Projects Approved in Three Years of Operations (FY09-11) ii The SPF is the World Bank’s premier global multi-donor trust fund in support of projects that contribute to prevention and recovery from conflict and fragility. With its support to recipient activities, the SPF has become an important entry point for early and catalytic financing for peace- building and state-building. This report outlines the objectives and early results of the SPF over 2010-2011, highlighting projects that capture how the fund addresses the complex challenges of governance and human security in FCSs. 2 i n t ro d u c t i o n State-building and peace-building are inter-related challenge in a single year. int roduct ion and complementary processes. The State- and Peace- One-and-a-half billion people live in areas affected by building Fund (SPF) was established in 2008 to address fragility, conflict, or organized criminal violence. Each the needs of state and local governance and peace-build- year of violence in a country is associated with lagging ing in fragile and conflict-affected states. The SPF is the poverty reduction of nearly one percentage point. Poverty World Bank’s premier global, multi-donor trust fund in rates are 20 percentage points higher in countries that support of projects that contribute to prevention and have been affected by repeated cycles of violence. recovery from conflict and fragility. With its support to Conflict and fragility work to create a vicious cycle. recipient activities, the SPF has become an important Ninety percent of the civil wars in the 21st century entry point for early and catalytic financing for peace- occurred in countries that had already experienced a building and state-building. This annual report outlines civil war in the previous 30 years. In addition to the eco- the objectives and early results of the SPF over 2010- nomic costs, the human costs of conflict are also high: 2011, highlighting projects that capture how the fund children in conflict- and violence-affected countries are addresses the complex challenges of governance and three times as likely to be out of school, and women in human security in fragile and conflict-affected situations these environments suffer from increased levels of 1 (FCSs). domestic violence and abuse. Persons living in a country affected by violence are twice as likely to be malnour- Fragility and Conflict: The Challenge ished, and an additional 50 percent are likely to be impoverished. Indeed, no low-income fragile or conflict- During 2010-2011, emerging situations of conflict affected state has yet achieved a single Millennium and fragility existed in every region of the developing Development Goal. world. Civil upheavals in both Tunisia and Egypt and sus- The impact of conflict does not end at the borders of tained instability in Bahrain, Libya, Syria, and Yemen fragile and conflict-affected states. Countries lose an severely marked the year’s events in the Middle East and estimated 0.7 percent of annual GDP for each neighbor- North Africa Region in 2011. Ethnic strife in Kyrgyzstan; ing country that is involved in a civil war. Fifteen million continued violence in Afghanistan, Iraq, Nepal, and people are refugees outside their country. And fragile Pakistan; and post-election violence in Côte d’Ivoire, and conflict-affected states are the primary exporters of Guinea, and Nigeria demonstrate the global scale of the 2 cocaine, heroin, and maritime piracy. 3 i n t ro d u c t i o n The State and Peace-Building Fund The State- and Peace-Building Fund was created in 2008 to consolidate and advance the World Bank’s strategic approach to conflict and fragility. The SPF operates at the intersection of development, conflict prevention, post-conflict reconstruction, and peace-building within the World Bank’s legal and policy framework. The following salient points describe the SPF: OBJECTIVES lio, and improve the speed of project processing. The overarching objective of the SPF is to address The biannual call has been successful in allowing the the needs of state and local governance and peace-build- SPF to overcome the first-come, first-serve approach to ing in fragile and conflict-affected situations. The SPF project selection, promoting a more strategic effort in also strives to capture and disseminate the lessons of its prioritizing activities. The SPF has also continued to activities to promote better understanding of the dynam- accept ad hoc proposal submissions where the projects ics of fragility and conflict as well as effective strategic catalyzed engagement and financing are clearly in situa- and operational approaches to support national and local tions of crisis or urgent need. Projects in Guinea Bissau, efforts to prevent and recover from violence. Libya, Somalia, and Tunisia were all processed in FY11 in line with these criteria. CONCEPTUAL ALIGNMENT The SPF recognizes the inherent connection between PROJECT PORTFOLIO security and development; and the vital link between As of June 30, 2011, the SPF approved 44 projects building peace and building institutions. Thus the SPF for US$95.5 million across all Regions. The projects promotes crosscutting and innovative approaches. The represent initiatives that aim to respond to the needs of SPF projects that promote youth entrepreneurs, for fragile and conflict-affected states, including employ- example, recognize that generating jobs and livelihoods ment generation initiatives in Côte d’Ivoire, Kosovo, and for at-risk youth contribute to prevention of violence, but Togo; justice and governance reform in Guinea Bissau, they must also touch on issues such as rule of law, Liberia, and Nepal; livelihood and community-driven broader economic development, and cultural attitudes. development approaches in Somalia and Sudan; and These challenges should be approached and tackled responses to the needs of vulnerable groups, including through a sustainable and holistic approach. women, internally displaced people, refugees, and youth across all regions. The SPF supports a wide range of ENTRY POINT FOR ENGAGEMENT implementing partners, including government entities, By definition, fragile and conflict-affected states UN agencies, and international and local NGOs. To date, have weak governance and limited institutional capacity the SPF has granted US$74.5 million, the largest share for development. A key value of the SPF is its mandate of financing, to government entities and NGOs. Annex 1 to pilot innovative initiatives that create a foothold for provides lists of all projects approved in the first three wider development involvement. The SPF is often used years of operations (FY09-11). as an instrument for initiating World Bank engagement in countries that otherwise have limited or no access to THEMATIC LEARNING World Bank resources: serving as an entry point for scal- With its mandate to pilot innovative approaches in ing up World Bank funding for specific projects or for re- fragile and conflict-affected states, a central pillar of the engaging with IDA. SPF is the capturing and sharing of lessons learned. By incorporating learning components into project design RESULTS OF CALL FOR PROPOSALS (FY11) and initiating independent knowledge and learning activ- Effective Fall 2010, a new strategy was introduced ities, the SPF promotes increased understanding of proj- including a call for proposal process and companion cri- ect impacts. This knowledge and learning agenda helps teria. The call resulted in the submission of over 50 con- guide the strategic direction of the SPF and informs the cept notes at a value of over US$100 million. This new areas of work in which the SPF engages. For example, streamlined process for selecting projects aimed to con- two impact evaluations of gender-based violence in the solidate administrative procedures, allow for greater pri- Democratic Republic of Congo and Côte d’Ivoire aims to oritization and strategic selection across the SPF portfo- improve the delivery of services for women who suffer 4 i n t ro d u c t i o n from this endemic problem and in turn inform SPF proj- int roduct ion ects that are working toward ways to end this violence. The SPF also commissioned a thematic activity for devel- MOVING FORWARD oping a system of monitoring and evaluation for projects that support youth employment and empowerment. To At its inception, the SPF was designed date, this activity has resulted in the development of a to align conceptually with cutting-edge youth-generated monitoring and evaluation system to track progress for five projects in Eastern Europe. research, policy reforms, and discourse Through partnership with development partners, the both within the World Bank and across knowledge gained from SPF thematic learning activities key partner institutions with regard to will help to guide and inform future efforts that promote peace-building and state-building peace-building and state-building in fragile and conflict- affected states. The Thematic Learning Section of this approaches. The release of the World report highlights new learning initiatives in the areas of Development Report 2011: Conflict, internally displaced people and subnational conflicts. Security, and Development and the WDR operationalization strategy has marked a PROGRAM MANAGEMENT STRUCTURE The SPF is housed within the World Bank’s Fragile and significant shift—both within the World Conflict-Affected Countries Group (OPCFC), a working Bank and across the international devel- unit responsible for coordinating country strategy, institu- opment system—toward new and revital- tional reform, knowledge management, and strategic part- ized approaches in fragile and conflict- nerships to improve the World Bank’s engagement with fragile and conflict-affected states. Within OPCFC, the affected situations. Secretariat manages all aspects of the SPF program, With its focus on early entry and insti- endeavors to build a network of programmatic partner- tution-building approaches, the SPF, ships, and works to orchestrate learning and knowledge- implemented in collaboration with a sharing activities. The SPF Secretariat supports a direc- tor-level, governing body, the SPF Committee, which pro- broad range of partners, is uniquely posi- vides strategic direction and is the approval authority for tioned to serve as a catalytic and flexible all SPF projects. The OPCFC is also the World Bank unit resource that “field tests” WDR 2011 rec- 3 that leads operationalization strategy of the World ommendations. While many synergies Development Report (WDR) 2011, which commits the World Bank to implementation of WDR recommendations. already exist, there are areas where the SPF will be brought further in line with the WDR recommendations. This alignment requires reframing and prioritization of the SPF focus and target results rather than fundamental changes to the SPF guiding principles. As advocated for in the WDR 2011, the SPF is exploring bet- ter ways to support strategic, sustained engagements in fragile and conflict- affected situations. Concurrently with this aim, the SPF is continuing to fund innova- tive projects and fast, flexible, and early engagements to take advantage of win- dows of opportunity to support successful transitions or to respond to crises. SPF ANNUAL REPORT 2011 5 STAT E-BUILDING: P ROJ ECT S IN HIGH LIGHT state-building: projects in highlight STATE-BUILDING seeks to strengthen, build, or rebuild institutions of governance that are capable of providing citizens with such functions as transparent and accountable management of public finances, investment in human capital and social development, rule of law, basic services and infrastructure, and an enabling environment for market development. A state’s low capacity to perform such functions along with limited civil society engagement and NGO oversight is often inherent in conditions of fragility, conflict, and violence. By strengthening and building institutional capacity and legitimacy—both governmental and nongovernmental—to carry out these functions, state-building increases resilience to fragility, conflict, and violence. The case studies below illustrate a range of SPF projects that respond to state-building challenges. the SPF project filled an unmet need by providing access Piloting a Community Model to water and sanitation services to rural areas. Most for Service Delivery international assistance was focused on Port-au-Prince CDD CB GVNC and camps serving the urban homeless. The SPF project HAITI also pilots a credible model of community involvement in Rural Water and Sanitation service delivery whereby villages and private firms share Already wrestling with the insurmountable problems the responsibilities of managing water and sanitation of being one of the poorest countries in the Western services. This model strengthens community capacity Hemisphere, Haiti was severely impacted by the world while increasing the credibility of government to deliver food and fuel crises of 2008 and later in that year was critical services. hit by three hurricanes. Still reeling from these external In the first stages of implementation, the project has shocks, in January 2011 Haiti experienced a massive successfully completed a water and sanitation system for earthquake that left hundreds of thousands of its citi- the community of Côteaux that serves approximately zens dead and more than a million homeless. Rioting 5,000 people. The project is scheduled to build 14 wells and violence and a deadly cholera outbreak followed, with pumps for 4 rural communities (Côteaux, Laval, adding to the devastation. Fond-des-Blancs, and Baie du Mesle), which could serve In this challenging context, the SPF “Rural Water an additional 6,500 people. With an aim to establish a and Sanitation” project aims to improve access to water long-term sustainable system, the SPF project also focus- supply and sanitation services in participating rural com- es on strengthening training on system maintenance and munities and strengthen community-level and munici- operation, with a particular emphasis on chlorination, the pal-level governance and institutional arrangements to relevance of which has been painfully underscored by reinforce state effectiveness and reduce the risk of social Haiti’s cholera epidemic. In the long run, clean water, conflicts. The project is designed to ensure that such good sanitation, and improved family hygiene will benefits will be sustainable by making services less vul- improve the living conditions of rural Haitians and assist nerable to natural disasters. After the 2011 earthquake, with the prevention of disease outbreaks. 6 Targeting Unemployment and Service Delivery through a Participatory Approach TUNISIA CB GVNC civil society in Tunisia of promoting the quality of public state-building: projects in highlight Participatory Service Delivery for Reintegration services in underserved regions and of developing local civil society and government capacity to address social High unemployment, coupled with a lack of social disparities. As part of the Social and Economic Recovery and political inclusiveness, fueled the civil unrest in Program supported by the World Bank, the Government Tunisia. Southern Tunisia in particular continues to be of Tunisia has instituted policies to expand citizen par- affected by the double shock of the political crisis and ticipation and the reach of social services through com- unrest as well as the effects of returning workers, Libyan munity-based initiatives, such as the community-based refugees, and loss of cross-border trade and economic social service delivery approach supported by the pro- activity due to the current political and civil crisis in posed SPF project. The SPF project will act as a confi- Libya. Working in collaboration with the government and dence-building measure by funding cash for work and a national non-profit organization, the SPF is supporting desirable services identified by the target communities a project to generate short-term employment opportuni- and will complement the World Bank’s existing work in ties in basic social services for local populations and Tunisia by acting as an early pilot and testing ground for returning Tunisian workers from Libya, through a com- the participatory development approaches advocated by munity-building, participatory approach. The program the Government of Tunisia in its transition strategy. will be implemented in the southern, predominantly The program will work with local NGOs and commu- rural governorates bordering Libya that face constraints nities to identify basic services that can be provided by in generating jobs and providing public services in part local citizens without advanced professional skills but due to growing numbers of Tunisian migrant and refugee with the guidance of trained professionals. Services may populations from Libya. include assistance in welfare monitoring, alert systems, The “Participatory Service Delivery for Reintegration” nutrition and feeding programs, peer support groups, project builds on the consensus among government and youth mentorship, and home assistance. 7 Holistic Approach to Gender-Based Violence CÔTE D'IVOIRE CB GVNC VULN commitment and capacity of local authorities and com- state-building: projects in highlight Protection from Gender-Based Violence munity members (women and men) to prevent gender- based violence; improve access to extended services for Since 2002, Côte d’Ivoire has experienced civil con- survivors of gender-based violence; and improve the flict characterized by cycles of extreme violence. There coordination and capacity of local organizations and key have been numerous reports of massive human rights stakeholders in prevention and response, including a abuses, particularly targeted at women. Rape and other multi-sectoral referral network for gender-based vio- forms of sexual abuse have been used to humiliate and lence. The project operates at three inter-related levels terrorize the civilian population. Domestic violence, (community, provincial, and national) that involve a wide female genital mutilation, and early/forced marriage are range of stakeholders. The Ministry of Health, the common. In addition to the physical violence against Ministry of Social Affairs, the Ministry of Justice, the women in Côte d’Ivoire, women cannot own the land they armed forces, NGOs, media, and local communities are cultivate and are not allowed to participate in communi- all involved. ty decision-making. The literacy rate for women is only Since the launch of the project in December 2010, 4 38.6 percent as compared to 60.8 percent for men. the project team has conducted awareness-raising activ- These circumstances create a difficult context for efforts ities with more than 10,000 beneficiaries of which 38 to prevent abuses and protect victims. To help address percent have been men. The project has also developed the situation, the International Rescue Committee (IRC) agendas for dialogue among groups of women and men has implemented the SPF-funded project, “Protection and has supported 370 survivors of gender-based vio- from Gender-Based Violence.” Box 1 describes an SPF- lence in collaboration with network partners. To respond financed study that evaluates the impact of assistance to the economic needs of women, 40 new micro-credit directed toward gender-based violence in Côte d’Ivoire. groups were established in 24 villages with a total of The overall objectives of the SPF project are preven- 1,330 women participating. The project has also tion of sexual violence against women and improved focused on supporting legal reforms as part of penal assistance to survivors. The project seeks to improve the code revisions initiated by the Ministry of Justice. 8 Holistic Approach to Gender-Based Violence state-building: projects in highlight BOX 1 VULN CÔTE D’IVOIRE Improving the Development Response to Gender-Based Violence An integral part of the SPF’s work is to pilot, and learn ing having experienced violence perpetrated by an intimate from, current projects to inform current and future opera- partner at some point in their life.* Thus the Côte d’Ivoire con- tions. Two SPF-financed projects in the Democratic Republic text offers important opportunities to build evidence through of Congo and Côte d’Ivoire are implementing different rigorous impact evaluations of gender-based violence pro- approaches that respond to gender-based violence. For both grams. projects, the SPF is financing complementing impact evalua- In 2010, the International Rescue Committee, the Yale tions as learning components of project activities. The objec- School of Public Health, and Innovations for Poverty Action tive of these evaluations is to identify effective development partnered to conduct a research evaluation of the IRC’s approaches to respond to gender-based violence and inform socioeconomic program in Côte d’Ivoire. The research part- related operations. ners bring together methodological and content expertise in Findings in studies of conflict-affected populations across the areas of epidemiology, gender-based violence, random- countries and regions often reveal high levels of accompany- ized trials, qualitative research, developmental economics, ing violence against women. Recent community-based and social policy. This evaluation will help to inform current research in Côte d’Ivoire, for example, underscores the per- and future projects implementing approaches specific to gen- vasiveness of gender-based violence against women and girls der-based violence. in this West African nation, with 60 percent of women report- * M. Hossain, C. Zimmerman, L. Kiss, and C. Watts, Violence against Women and Men in Côte d’Ivoire: A Cluster Randomized Controlled Trial to Assess the Impact of the ‘Men & Women in Partnership’ Intervention on the Reduction of Violence against Women and Girls in Rural Côte d’Ivoire—Results from a Community Survey. (London, England: London School of Hygiene & Tropical Medicine, 2010). 9 Increase Youth Civic Engagement through Volunteerism LEBANON CDD VULN GVNC MktF by international evidence. And volunteering outside of state-building: projects in highlight National Volunteer Service Program (NVSP) one’s own community has been considered good practice by development practitioners who posit that a change in For many young adults in Lebanon, war is a prominent context is a prerequisite for a change in attitudes. The backdrop of everyday life. Conflict has gripped Lebanon project is designed to develop and scale up the nascent on and off for over three decades. Many of the country’s volunteerism activities of the Ministry of Social Affairs by youth are all too familiar with being confined to their developing the institutional and governance structure for homes, finding refuge at shelters, obeying curfews, and volunteerism in the country; strengthening capacity of sifting through the rubble of their homes to find the rem- the Ministry of Social Affairs, NGOs, universities, schools nants of their lives. Despite living in a country of small and volunteers; and expanding opportunities for volun- geographic size, many youth have not been exposed to teerism through civil society. other parts of their country before they begin their edu- The project also aims to improve youth employability. cation or start to work. With a highly complex political, Many Lebanese working-age youth lack the skills and religious, and social landscape consisting of 18 religious competencies demanded by employers, particularly the sects, numerous political parties, and hundreds of thou- transferable work-related skills acquired through commu- sands of refugees, the country’s current civil peace is nity-service learning, the very competencies that are fragile. There is a great need to work preventively for needed for young people to contribute to civic engage- peace- and state-building by supporting the reconcilia- ment and national cohesion. In the international arena, tion potential of society as a whole. There is a need to these skills can often only be developed through volun- rebuild destroyed relationships and defuse tensions by teerism in civic service, community work, and intern- bringing groups together around shared goals. ships, in order to give hands-on experiences in interact- The SPF-supported “National Volunteer Service ing with others within the community and provide the Program” is an innovative project that plans to use vol- skills that can help make the younger generation more unteerism as a means of increasing youth civic engage- employable. This innovative project also incorporates a ment with the aim of contributing to social cohesion in strong learning element, whereby an impact evaluation the medium term. Voluntary civic service is believed to will help provide evidence on whether volunteered, com- build more cohesive societies through building citizen- munity-service experience can lead to greater labor mar- ship. The benefits of youth volunteering toward civic ket integration. development, citizenship, and social cohesion are backed 10 11 state-building: projects in highlight SPF ANNUAL REPORT 2011 PEACE- BUILD ING: P ROJ ECT S IN HIGHL IGHT peace-building: projects in highlight 12 Support for Economic and Infrastructure Development Support for Economic Although the country has come a long way in re- peace-building: projects in highlight establishing peace and social stability, the relationship and Infrastructure Development between the Albanian community and the Serb commu- nity remains tense. Ethnically mixed municipalities remain especially prone to localized outbreaks of vio- KOSOVO CDD CB GVNC MktF lence. Security forces also continue to monitor the Social Inclusion and Local Development enclaves and islands of ethnic Serbs communities that are scattered within the ethnic Albanian population. In Kosovo, one of the poorest countries in Europe, Financing from the SPF is critical to support recon- poverty is persistent and widespread. According to avail- struction and development through a participatory and able data, 45 percent of the population lives below the inclusive development process at the local level. The national poverty line, and an estimated 17 percent are SPF-supported project enables efforts by the considered extremely poor. With an unemployment rate Government, donors, and the international authorities to of 47 percent, Kosovo has the weakest employment track increase access to basic social services, reconstruct key record in Europe, substantially below the average among infrastructure, and increase income and employment all transition economies. Kosovo’s four main ethnic opportunities. Project activities are designed to foster minorities—Serbs, Turkish Muslims, Slav Muslims, and reconciliation among different ethnic groups and encour- Roma—are particularly vulnerable, with extreme poverty age the integration of minorities and other vulnerable the highest among Roma and Slav Muslim households. groups, including women. The beneficiaries of the proj- High unemployment and lack of adequately paying jobs ect are populations residing in the poorest of Kosovo’s contribute significantly to poverty and income insecurity municipalities, including all municipalities that have as well as to ethnic tensions. minority or multi-ethnic enclaves. The project focuses on viable, sustainable enterprises that can create jobs and strengthen local communities. It also targets enterprises that are owned by female and ethnic minorities. SPF ANNUAL REPORT 2011 13 Mitigate Conflict through Resource Management SUDAN CDD CB conflict, little or no infrastructure exists. Large-scale peace-building: projects in highlight Peace-Building and Development return of displaced populations has added to the com- petition for limited resources and increased the deple- Sudan’s 2005 Comprehensive Peace Agreement tion and strain on the limited, existing infrastructure. made provisions for funds to target the least developed Minor conflicts between pastoralist nomadic herders and states, namely Abyei, Blue Nile, Darfur, and South settled farmers have escalated as a result. Kordofan, reflecting the recovery and development needs The SPF project “Peace-Building and Development” of these areas as well as their pivotal roles in sustained promotes peaceful coexistence between divergent groups peace and security. The implementation of development through increased understanding and improved liveli- activities became critical as internally displaced people hood opportunities. To achieve this objective, the project returned and humanitarian and development agencies undertakes development activities that address the scaled up activities. Households had greater opportunity important causes of ethnic conflicts such as stock to invest in agriculture, heightened security, and routes, water resources, and employment and income- improved mobility—creating opportunities for increase generating opportunities. Beneficiaries include nomadic in food and cash income. However, these states suffer pastoralists and the settled farmers along stock routes. from insecurity due to conflict over national resources The project supports the demarcation of high-priority and pressure on the already strained social services. In stock routes prone to conflicts and provision of water areas that were largely depopulated during the years of points where water-related conflicts are a continuing 14 Mitigate Conflict through Resource Management threat. The stock routes are demarcated through inten- peace-building: projects in highlight BOX 2 CB GVNC sive consultations with the settled communities of the villages in the path of the stock routes, the farmers’ and herders’ associations, village opinion leaders, govern- EARLY ENGAGEMENT TO MANAGE ment entities and related departments and extension RESOURCE DEPENDENCE services, and NGO volunteers who will contact the vil- lages to start the initial dialogue with the impacted com- munities. The watering facilities are built at regular intervals for the moving livestock, and also take care of the drinking water needs of the local human and cattle populations of the village. Women and youth are targeted as primary beneficiar- ies. To complement the demarcation work and address the lack of economic opportunities, the SPF project also provides training and start-up support to women and youth in simple income-generating activities, including tailoring, food processing, and carpentry. Looking ahead, Southern Sudan will look to a new SPF project to help manage its resource dependence (Box 2). The Republic of Southern Sudan was officially recognized as a newly independent state in July 2011, and had to quickly transform itself from a subnation- al entity to a fully sovereign state. A new SPF-financed project, “Strengthening Core Functions for Managing Resource Dependence,” responds to a comprehen- sive assessment of immediate priorities conducted by the Government and its development partners to assure an effective transition to the post-peace agreement era. Southern Sudan derives about 98 per- cent of its revenues from oil, which is channeled through the fiscal budget. The new Government of Southern Sudan is expected to remain significantly dependent on oil over the near term. The objective of the SPF project is to establish basic capacity within the Government to manage resource dependence through technical assistance in (a) managing resources and revenue, (b) establishing an independ- ent macroeconomic and fiscal policy framework that takes into account the challenges coming from sig- nificant oil dependence, and (c) initiating the Government’s accountability function for the use of oil revenues. SPF ANNUAL REPORT 2011 15 Employment Creation for Vulnerable Groups SOLOMON ISLANDS CB GVNC VULN MktF based public works paired with pre-employment training. peace-building: projects in highlight Rapid Employment Pre-employment training addresses the beneficiary group’s general lack of experience with, and exposure to, Solomon Islands is a fragile, post-conflict country. the formal economy and job market. The training is Between 1998 and 2003 the country underwent a peri- geared to supporting skills, attitudes, and practices that od of civil unrest, the legacy of which continues to are valued by employers who will both support work threaten stability and development progress today. The under the rapid employment scheme and improve oppor- country has also experienced severe decline in econom- tunities for participants to gain further employment. As ic activity that has caused a fiscal and balance-of- of March 2011, the project has engaged about 130 com- payments crisis. This situation, which has been exacer- munity groups and supported 3,777 hired workers, 49 bated by the global economic crisis, has raised govern- percent of whom are women and 50 percent are working- ment concerns about the potential for renewed violence, age youth. especially in the urban areas of the country where previ- Secondary benefits will accrue to target communi- ous tensions were focused. ties/neighborhoods and the general urban population As a preventative measure, the SPF-financed “Rapid from the infrastructure and services that are provided Employment” project aims to contribute to government through the rapid employment scheme. The project also efforts to mitigate renewed unrest or violence by improv- helps to mitigate the negative effects of government aus- ing employment opportunities for targeted urban work- terity measures by ensuring basic services and access for ing-age youth and other vulnerable groups. The project the poorer communities in Honiara, one of the target uses a rapid employment scheme to provide short-term communities for the project, including those where the temporary employment opportunities through labor- previous conflicts were focused. 16 Building a Bridge between Humanitarian and Development Assistance SOMALIA VULN peace-building: projects in highlight BOX 3 VULN GVNC MktF Support to the Extended Program of Immunization RESPONSE TO DROUGHT AND FAMINE EMERGENCY IN SOMALIA Somalia has experienced a prolonged humanitarian crisis due to a civil war that is still affecting large parts On July 20, 2011, the United Nations issued a dec- of the country. Without a functioning central government laration and call for aid in response to the famine there has been a collapse in the delivery of basic social impacting the Bakool and Lower Shabelle regions in services, including a system of health care. The political Southern Somalia. The famine had already killed tens situation together with regular occurrence of emergen- of thousands of people and was expected to become cies, including floods, droughts, and disease outbreaks, has resulted in a catastrophic health dilemma. Today, widespread throughout the country. Due to drought child and maternal mortality rates for Somalia (including across Southern Somalia, farmers and herders lost Puntland and Somaliland) are among the highest in the crops and animals that are often their sole source of world. Recent statistics indicate that 1 out of every 12 income and primary basis for household food securi- Somali children dies before their first birthday. Similarly, ty. Crop production was expected to reach no more 1 out of every 100 women dies due to pregnancy-related than 50 percent of a five-year average, and pasture causes. In late 2009, the reported immunization cover- availability was significantly below average and age for Somalia was about 30 percent, an astoundingly expected to deteriorate further, indicating that the insufficient figure in preventing the spread of vaccine- coming dry season would be especially difficult for preventable diseases. pastoral households. The SPF-supported rapid response project, “Support As a consequence, many Somalis struggled to to the Extended Program of Immunization” secured the cope with severely reduced access to food, acute delivery of vaccines and cold chain equipment to Central Somalia in Jowhar. UNICEF, the SPF project implement- malnutrition, and high morbidity and mortality; many ing partner, has reached more than 100,000 beneficiar- left their homes to seek assistance elsewhere. ies in the most difficult of operating conditions. The cold Kenyan and Ethiopian refugee camps hosted hun- chain equipment and accessories were distributed and dreds of thousands of Somali refugees during the installed in maternal and child health centers in Central drought emergency. Refugees arrived in horribly Somalia. Although initially responding to a health emer- weakened conditions, on the verge of starvation. gency by providing basic services, the medium- to long- In response to the famine emergency, in August term objective of the project is to re-establish the insti- 2011 the SPF agreed to support a project that would tutional capacity of the interim government to maintain finance a cash-for-work program to increase access basic health service provision. The SPF project is linked to food through the markets by providing short-term to UNICEF’s longer-term, child survival and primary employment to beneficiaries in food-insecure areas. health care goals. This long-term aim is to institutional- The objective of the “Drought Management and ize services for highly impacted populations by building the capacity of the health system and local health per- Livelihood Protection” project is to rehabilitate basic sonnel. This scheme would be required to effectively infrastructure that would support long-term drought plan and regularly deliver community-level health servic- management and resilience. This project is a contin- es. It would also serve as an entry point for a compre- uation of previous agriculture and livestock projects hensive behavioral change program with focus on breast- implemented by FAO and financed by the SPF and feeding and complementary feeding practices and hand other World Bank-administered trust funds. washing, all of which are underlying factors associated The emphasis of this project is placed on post- with consistently high malnutrition and mortality rates in crisis recovery, bridging the gap between humanitar- Somalia. ian relief and development activities. The project Box 3 describes another SPF-supported project in activities respond to the crisis by increasing access response to the famine that has threatened the lives and to food in food-insecure areas in the short-term livelihoods of Southern Somalia. while developing a medium- to long-term develop- ment livelihood plan. 17 thematic learning activites in fragile states thematic learning activites in fragile states With a focus on supporting innovative projects that often pilot new approaches in fragile and conflict- thematic learning activites in fragile states affected states, assessing project impact and collecting lessons is a key function of the SPF. The knowl- edge gained from SPF thematic learning activities will help to guide and inform the strategic direction of the trust fund program and inform future World Bank efforts that promote peace-building and state-build- ing in fragile and conflict-affected states. For this reason, the SPF Secretariat has launched learning ini- tiatives in thematic areas that are relevant to the fragility and conflict agenda. Livelihood Rehabilitation for Internally Assessing the Challenges of Subnational Displaced People Conflicts In 2011 the SPF Secretariat expanded its knowledge Subnational conflict is a widespread problem in Asia, and learning portfolio to include livelihood rehabilitation affecting nearly two-thirds of the countries in South and for internally displaced people and refugees in situations Southeast Asia. While most of Asia is rapidly developing, of return or displacement. An assessment carried out by subnational conflict areas typically lag behind in key the World Bank’s Social Development Unit reports that development indicators. Many of these regions have an estimated 20 percent of active SPF grants target dis- been afflicted for decades, leading to protracted cycles placed populations. The assessment also plans to evalu- of under-development, poor governance, and instability. ate the SPF portfolio, other World Bank trust-funded These conditions often create an environment that stifles projects, and IDA-financed projects to identify effective local economic growth, prevents integration into the livelihood approaches and make recommendations for national and regional economies, leads to deteriorating future interventions. The activity is split into two phases: social services and consistently high level of violent con- (a) the development of an evaluation methodology and flict, and has potentially negative spillover effects in (b) the application of the methodology to selected proj- neighboring regions. ects. An informal consultative network has been estab- While there has been a surge in funding for develop- lished with a wide range of external partners, including ment assistance in subnational conflict areas, there have UN agencies and research institutions, to discuss the been relatively few studies that specifically analyze the methodology and the selection of projects for case stud- unique challenges for donor decision-making processes, ies. Results of this assessment are expected in 2012. aid relevance, and implications for such expanded aid to these regions. A current SPF project aims to assess the unique challenges in conflict-affected subnational areas in South and Southeast Asia, and to analyze the rele- vance and appropriateness of current development responses and practice. The research focuses on the analysis of the interaction between contested gover- nance, development assistance, and violent conflict in conflict-affected regions. The research methodology uti- lizes the local political-economy dynamics as a frame- work of analysis for understanding the level of contesta- tion over governance, and takes advantage of potential opportunities for South-South learning across the case studies. Research findings will help to inform decision- making among international donor organizations and government officials in countries affected by subnation- al conflicts. SPF ANNUAL REPORT 2011 19 financial summary During the first three years of operations (FY09-11) income (US$2.6 million). Denmark has pledged an financial summary the SPF received a total of US$130.7 million, compris- amount of US$1.8 million in the 2012 fiscal year. Table ing World Bank contributions (US$100 million), donor 1 outlines in detail the contributions received from each contributions (US$28.2 million), and investment donor. TABLE 1: SPF DONORS (US$ MILLIONS, AS OF JUNE 30, 2011) CONTRIBUTIONS DONOR RECEIVED PLEDGES (FY12) TOTAL IBRD 100.0 100.0 Australia 4.3 4.3 Denmark 3.6 1.8 5.4 Netherlands 14.1 14.1 Norway 3.3 3.3 Sweden 2.9 2.9 TOTAL CONTRIBUTIONS 128.2 1.8 130.0 As of June 30, 2010, and from the total sources of By the end of FY11, the SPF had also committed an funds (US$130.7 million), the SPF has approved 44 amount of US$6.8 million for program management projects, totaling commitments of US$95.5 million. In costs (including knowledge and learning activities). early FY12, a pipeline amount of approximately US$20 Program management funds are expected to cover the million for 7 projects is pending review by the SPF costs of 6 years of operations. This funding includes a Committee. This pipeline amount, if approved, will bring commitment for three thematic learning activities that the total amount of projects approved to approximately cover the thematic areas of youth, gender-based vio- 6 US$115.0 million. lence, and internally displaced people. Table 2 provides a complete picture of the sources and uses of SPF funds. TABLE 2: SOURCES AND USES OF FUNDS (US$ MILLIONS, AS OF JUNE 30, 2011) APPROVALS/ SOURCE SOURCES COMMITMENT DISBURSEMENTS Funding (all donors) 128.2 Investment income 2.6 Projects - 95.5 26.6 Program management* - 6.8 2.7 TOTAL 130.7 102.3 29.2 * Program management includes knowledge and learning activities for six years of operations. 20 financial summary Overall, the disbursement rate for the SPF at the end ects have an implementation timeline of three years and financial summary of June 30, 2011, was 22 percent for the total portfolio have an increase in disbursement in the second year of —that is, total disbursements of US$29.2 million from operations. This increase in disbursements from the first total sources of funding of US$130.7 million. From the to the second year of operations accurately depicts the 44 projects approved since inception, US$26.6 million operational reality of implementing projects in fragile (or 27 percent) has been disbursed directly to grant and conflict-affected states, where projects often require recipients. In 2011, the SPF also supported the Haiti a longer than usual start-up period because of country Reconstruction Trust Fund with a contribution of US$2 instability, weak institutions, and the need to hire quali- million, raising the total amount disbursed to projects fied personnel. Table 3 outlines disbursements by fiscal from US$26.6 million to US$28.6 million. Most proj- year for all approved projects. TABLE 3: PROJECT DISBURSEMENTS BY YEAR OF IMPLEMENTATION (US$ MILLIONS, AS OF JUNE 30, 2011) DISBURSEMENTS FISCAL YEAR APPROVED 1ST YEAR 2ND YEAR 3RD YEAR TOTAL 2009 0.7 3.7 11.2 15.6 2010 - 2.2 8.1 10.3 2011* - - 2.7* 2.7 TOTAL 0.7 5.9 22.0 28.6 *Includes an MDTF contribution (disbursement) of US$2 million for Haiti. raising the total amount disbursed to projects from $26.6 (Table 2) to $28.6 million. In 2011, the SPF increased its financing to the the Africa Region continues to be a priority for the SPF Middle East and North Africa Region from 8 percent (in and represents 47 percent of the total financing for proj- 2010) to 15 percent as a result of the rising needs in the ects in early FY12. Figure 1 presents a breakdown of the Region, and financing to the East Asia and Pacific financing approved for each World Bank Region. Region increased by 5 percentage points. Financing to FIGURE 1: PERCENTAGE OF FINANCING APPROVED FOR PROJECTS BY REGION (AS OF JUNE 30, 2011) SA 3% AFR EAP 47% 13% ECA 9% LAC MENA 13% 15% SPF ANNUAL REPORT 2011 21 financial summary As a recipient trust fund focused on partnership, the ernment entities and NGOs. To improve strategic engage- financial summary SPF engages with a wide range of government agencies ment within fragile and conflict-affected situations, the and civil society organizations, transferring valuable SPF also supports learning and knowledge-sharing ini- skills and lessons back to the World Bank. SPF projects tiatives through collaborations with world-class institu- are implemented through partnerships with government tions such as the Harvard Program in Refugee Trauma, line ministries as well as nongovernment entities such as Oxford University, Yale School of Global Health, the international and local NGOs, research institutions, or Woodrow Wilson International Center for Scholars, the UN agencies. Under exceptional circumstances, govern- Brookings Institution, and the Center for Conflict ments may request that the World Bank execute a por- Resolution (South Africa). These activities are designed tion or phase of a project while local capacity required to to benefit the wider development community. Table 4 implement the activities is developed. outlines the amount of funding approved by recipient As of June 30, 2011, the SPF granted US$74.5 mil- type. lion, the largest share of financing (78 percent), to gov- TABLE 4. FUNDING APPROVED BY RECIPIENT TYPE (US$ MILLIONS, AS OF JUNE 30, 2011) NO. OF PROJECTS AMOUNT GRANT RECIPIENT TYPE APPROVED APPROVED Government Entity 16 38.0 NGOs 15 36.5 UN Agencies 4 6.5 World Bank-executed 8 14.2 Research Institution 1 0.3 TOTAL 44 95.5 22 annex 1: projects approved in three years of operations (FY09-11) annex 1: projects approved in three years of operations PROJECTS APPROVED IN FIRST YEAR OF OPERATION (FY09: JULY 2008-JUNE 2009) COUNTRY PROJECT TITLE PROJECT AMOUNT US$ Central African Republic Safe and Reliable Public Electricity Project 2,500,000 Colombia Protection of Patrimonial Assets—Phase III 5,000,000 Côte d'Ivoire Young Entrepreneurs and Urban Job Creation 2,000,000 Côte d'Ivoire Strengthening Communication and Transparency for Governance Reform 1,400,000 Georgia Internally Displaced Peoples Community Driven Development 2,209,400 Guinea-Bissau Support to National Health Development Plan—Phase II 2,041,500 Guinea-Bissau Economic Governance Support 1,740,000 Guinea-Bissau Participatory Rural Development Grant 5,000,000 Haiti Rural Water and Sanitation 5,000,000 Iraq Regional Perspectives on Iraqi Displacement 321,304 Liberia Land Sector Reforms 2,982,000 Nigeria Community Foundations Initiative 1,386,200 Thailand Piloting Community Approaches (World Bank-executed) 600,000 Thailand Piloting Community Approaches (Recipient-executed) 2,000,000 Zimbabwe Agricultural Inputs Project 4,900,000 TOTAL 39,080,404 PROJECTS APPROVED IN SECOND YEAR OF OPERATIONS (FY10: JULY 2009-JUNE 2010) COUNTRY PROJECT TITLE PROJECT AMOUNT US$ Côte d'Ivoire Protection from Gender-Based Violence 2,050,000 Dem. Republic of Congo Addressing Gender Based Violence in South Kivu 1,984,787 Iraq Consultative Service Delivery Program (Phase II) 5,026,854 Lebanon Nahr el-Bared Palestinian Refugee Camp 90,000 Nepal Program to Promote the Demand of Good Governance (Recipient-executed) 782,000 Nepal Program to Promote the Demand of Good Governance (World Bank-executed) 2,218,000 Philippines Encouraging More Resilient Communities in Conflict-affected Areas in the 1,799,711 Philippines (World Bank-executed) Philippines Encouraging More Resilient Communities in Conflict-affected Areas in the 424,804 Philippines (Recipient-executed) Philippines Encouraging More Resilient Communities in Conflict-affected Areas in the 345,485 Philippines (Recipient-executed) Solomon Islands Rapid Employment (Recipient-executed) 1,821,250 Solomon Islands Rapid Employment (World Bank-executed) 178,750 Solomon Islands Mining Sector Technical Assistance (Phase 1) (Recipient-executed) 750,000 Solomon Islands Mining Sector Technical Assistance (Phase 1) (World Bank-executed) 150,000 Somalia Support to the Extended Program of Immunization (EPI) in Somalia 499,990 Somalia Emergency Livestock Disease Surveillance and Control and Promoting 900,000 Competitive Meat Industry Sudan Peace-Building for Development 4,200,000 Togo Private Sector Revitalization 1,100,000 TOTAL 24,321,631 SPF ANNUAL REPORT 2011 23 annex 1: projects approved in three years of operations (FY09-11) annex 1: projects approved in the first three years of operations PROJECTS APPROVED IN THIRD YEAR OF OPERATION (FY11: JULY 2010-JUNE 2011) COUNTRY PROJECT TITLE PROJECT AMOUNT US$ Haiti MDTF Contribution to the Haiti Reconstruction Trust Fund (HRTF) 2,000,000 Iraq Consultative Service Delivery Program (Phase III) 5,000,000 Jordan Enhancing Legal Aid Services to Iraqi and Palestinian Refugees 1,827,530 Kosovo Second Kosovo Youth Development 2,000,000 Kosovo Social Inclusion and Local Development 4,902,762 Lebanon The National Volunteer Service Program (NVSP) 2,000,000 Papua New Guinea Inclusive Development in Post-Conflict Bougainville (IDIB) 2,518,230 Regional Opportunities and Challenges for Aid Delivery in Sub-National Conflict Areas 1,770,000 Somalia MDTF Contribution to the Private Sector Development Re-engagement 2,200,000 Program for Somalia—Phase II Somalia Somalia Knowledge for Operations and Political Economy Program (SKOPE) 2,000,000 Sudan Strengthening Core Functions for Managing Resource Dependence 3,260,000 Zimbabwe Beitbridge Emergency Water Supply and Sanitation Project 2,650,000 TOTAL 32,128,522 24 endnotes endnotes ENDNOTES Håvard Hegre, Håvard M. Nygård, and Håvard Strand, “Human, Economic, and Social Consequences of Fragility and Conflict”, 1 background paper for the WDR 2011 (Washington, D.C.: World The terminology “fragile and conflict-affected situation” is Bank, 2011). The gender impact of conflict data was obtained sometimes used to capture a broader range of events not neces- from Sanam Anderlini, “Gender Background Paper”, back- sarily associated just within the purview of a fragile or conflict- ground paper for the WDR 2011 (Washington, D.C.: World affected state or country, but periods when states or institutions Bank, 2011). lack the capacity, accountability, or legitimacy to mediate rela- tions between citizen groups and between citizens and the state, making them vulnerable to violence. 3 “Operationalizing the World Development Report 2011: Con- flict, Security, and Development” (World Bank, April 16, 2011). 2 The data presented in this section was obtained from the World Development Report 2011: Conflict, Security and Devel- 4 World Development Indicators 2011 (Washington, D.C.: opment. (Washington, D.C.: World Bank, 2011). The poverty World Bank, 2011) data was obtained from WDR team calculations based on poverty data from Shaohua Chen, Martin Ravallion, and Prem Sangraula, “Dollar a Day Revisited,” World Bank Economic Re- 5 World Bank Poverty Assessment, 2007. view (2008). The data on repeated cycle of civil wars was ob- tained from Barbara F. Walter, “Conflict Relapse and the 6 Sustainability of Post-conflict Peace”, background paper for the To see an updated list and description of projects (including WDR 2011 (Washington, D.C.: World Bank, 2010). The the projects approved in FY12), please visit the SPF website lo- spillover effect of conflict data came from Resat Bayer and cated at the following link: Matthew C. Rupert, “Effects of Civil Wars on International http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/S Trade, 1950–92”, Journal of Peace Research (2004). Refugee TRATEGIES/EXTLICUS/0,,contentMDK:22031772~ data was obtained from “World Refugee Survey 2009” (U.S. menuPK:519150~pagePK:64171531~piPK:64171507~the- Committee for Refugees and Immigrants, Arlington, VA, 2009). SitePK:511778,00.html The data on arrested social development impact of conflict was obtained from WDR team calculations based on Scott Gates, SPF ANNUAL REPORT 2010 25 The State and Peace-Building Fund PHOTO CREDITS Fragile and Conflict-Affected Cover: Petterik Wiggers/Panos Pictures Countries Group Back cover: Jenny Matthews/Panos Operations Policy and Country Service pp. 2-3: Arne Hoel/The World Bank The World Bank 1818 H Street NW p.5: Curt Carnemark/The World Bank Washington, DC 20433 USA p. 6: Jean-Martin Brault/The World Bank pp. 8-9: Emma Koffi and Mrs. Kouame/ Tel. 202 458 2426 Fax. 202 522 2266 Global Crescendo Project, International Rescue Committee email: spf@worldbank.org www.worldbank.org/fragilityandconflict p. 7: Jeroen Oerlemans/Panos p. 10: Ahikam Seri/Panos © 2011, The World Bank p. 11: JB Russell/Panos p. 12: Martin Roemers/Panos p. 13: Andrew Testa/Panos p. 14: Dieter Telemans/Panos p. 15: Sven Torfinn/Panos p. 16: Solomon Islands World Bank Country Office p. 19: Dominic Sansoni/The World Bank p. 21: Yuri Mechitov/The World Bank p. 22: Arne Hoel/The World Bank p. 25: Alex Baluyut/The World Bank