Trust Fund for Environmentally and Socially Sustainable Development (TFESSD) Annual Report November 1, 2004- April 30, 2005 1 TABLE OF CONTENTS INTRODUCTION................................................................................................................................ 1 1. STRATEGIC OBJECTIVES: IMPACT, CAPACITY BUILDING AND KNOWLEDGE SHARING ............ 1 A. TRUST FUND IMPACT AND CAPACITY BUILDING ................................................................ 1 B. STOCKTAKING OF KNOWLEDGE SHARING AND LEARNING (KSL)................................... 2 2. WINDOW REPORTS................................................................................................................ 5 A. SUMMARY ......................................................................................................................... 5 B. SOCIAL DEVELOPMENT WINDOW ...................................................................................... 6 C. ENVIRONMENT WINDOW ................................................................................................. 17 D. POVERTY WINDOW.......................................................................................................... 25 E. SOCIAL PROTECTION WINDOW...................................................................................... 38 3. ADMINISTRATION AND GOVERNANCE .................................................................................. 42 A. FY06 CALL FOR PROPOSALS .......................................................................................... 42 B PARTNERSHIPS............................................................................................................... 44 4. FINANCIAL SITUATION........................................................................................................... 46 A. DISBURSEMENTS AND COMMITMENTS............................................................................ 46 B. FUND BALANCE AND PROJECTIONS ................................................................................ 47 Annexes Annex 1: From Opportunity to Mainstream: Impacts of the Trust Fund for Environmentally & Socially Sustainable Development (report) -- see separate word document Annex 2: Knowledge Sharing and Learning activities (list) Annex 3: Partnerships (list) Annex 4: Norwegian and Finnish Consultants (email & list) Annex 5: Portfolio table (list) ­ see excel file Annex 6: FY06 Proposals (list) Annex 7: Progress reports (sent separately in CD format) 1 INTRODUCTION Since 1999 the TFESSD has supported 241 projects in more than 50 low- and middle-income countries. The donor contribution related to these projects totals US$47 million. The World Bank reports on the progress of activities and portfolio performance and development every half year. The June 2004 annual report linked the progress and portfolio reports with an analysis of trends and areas of strategic importance. This report, covering the period November 1, 2004 to April 30, 2005, is the second so-called "strategic report". Here the TFESSD progress and achievements are discussed with a focus on strategic impacts. This can also be seen as a preparation for the upcoming external evaluation of the trust fund. The focus of chapter 1 responds to donor request for information on impact, capacity building and knowledge sharing. A more in-depth report on impacts is attached in Appendix 1. Chapter 2 presents the progress and achievements of the Social Development, Environment, Poverty and Social Protection Windows. In addition, Window reports complement the in-depth report in Appendix 1 by focusing on impact, knowledge sharing and capacity building. Chapter 3 is dedicated to administration and governance issues. Focus is on the Call for Proposals and Partnerships, including Norwegian and Finnish consultants. These topics should be discussed further with the donors at the annual meeting. Recently, there have been major changes in the Bank's administration of the trust fund. In fall 2004, the administration of the fund was transferred from the Environment Department to the Social Development Department. All the four Window Managers were changed along with two of the Window Manager Assistants. There are new people in the position of Technical Advisor and Technical Advisor Assistant. During this reporting period, some changes have been made to administrative processes. During the next reporting period, when the team will be more experienced, we anticipate further changes to improve trust fund results, promote further cross-sectoral work, and at the same time make the administration more efficient. In chapter 4, the Bank reports on the financial situation of the trust fund. 1. STRATEGIC OBJECTIVES: IMPACT, CAPACITY BUILDING AND KNOWLEDGE SHARING A. TRUST FUND IMPACT AND CAPACITY BUILDING TFESSD donors want to know what kind of impacts the TFESSD activities have on the World Bank and its clients. Development impacts, like change and growth, take time. If it takes a decade for a transformation to take hold, it can take another decade to see whether its impacts are sustainable. Now that the TFESSD has been active for a good five years, the Bank has undertaken a review1 to see if the immediate impacts seem to be lasting, and to look for trends. Based on trust fund activity case studies, documents and interviews with World Bank staff, the review looks at early impacts of the TFESSD within the World Bank and in client countries. 1 From Opportunity to Mainstream: Impacts of the Trust Fund for Environmentally & Socially Sustainable Development. May 2005. Included in this report at Annex 1. 1 A review of early impacts concludes that the TFESSD has helped move the sustainable development agenda from opportunity to mainstream. The review finds that the TFESSD has helped the World Bank change and grow in several ways: · multi-level TFESSD support, for conceptual and strategy/policy and operational work, moves sustainable development approaches from innovation to mainstream · TFESSD support deepens research, allows for critical collaboration, and concretizes concepts through development of frameworks and indicators · TFESSD builds content and consensus for ESSD strategies, and enables their implementation, · TFESSD helps mainstream ESSD by enabling its codification into operational policies, and · TFESSD inspires collaboration across sectors and country teams. Work supported by the trust fund has also shown impacts on the ground at all levels -- from thinking to policy and practice. Most importantly: · TFESSD gives governments the opportunity to try something new. · TFESSD contributes to building capacity of many development stakeholders · TFESSD allows for innovation & partnerships to work hand in hand to mainstream sustainable development. In addition to impacts on countries and the World Bank, the review shows that TFESSD activities have also made important contributions to development thinking and knowledge sharing at global levels. TFESSD's investment in a broad range of activities has been the fuel for moving sustainable development toward mainstream work that is accepted as integral to poverty reduction. Window reports structured to reflect aspects of TFESSD activities of highest strategic importance. The review of early impacts shows the interconnectedness of TFESSD activities and their impacts. Looking at the case studies on which the review is based, it becomes clear that the most important aspects of TFESSD activities -- knowledge sharing, capacity building and partnerships -- are at times means and at times ends, and that they influence each other. Therefore, the main body of this Semi-Annual Report takes its structure from these key aspects. Each window report that follows discusses impacts, with particular reference to knowledge sharing, capacity building and partnerships, see Chapter 2. B. STOCKTAKING OF KNOWLEDGE SHARING AND LEARNING (KSL) At the TFESSD meeting in December 2004 it was agreed that the Bank would take a closer look at the KSL activities related to the TF activities, consider whether there is a need for more TFESSD-initiated KSL, and report findings in June 2005. In the following we divide KSL activities into two main groups: activities that are generated through the projects themselves and activities that are initiated directly by the TFESSD administration. 2 KSL is an important part of most Bank projects, thus we are reluctant to add more To get an overview of KSL in TFESSD work, we used activity completion reports to take stock of KSL activities in completed projects under the Social and Poverty Windows. The activities related to each of the projects are listed in Appendix 2. The stocktaking showed that most of the projects undertook some form of knowledge sharing activities. KSL includes activities within client countries, and knowledge sharing with, and dissemination to, Bank staff and/or other international or bilateral organizations. Brown bag lunches, dissemination notes, brochures, toolkits, case studies, reports and publications have been key tools used for knowledge sharing, as have workshops, conferences, Global Distance Learning Network (GDLN), and dialogues (both in- country and regional) for discussing and sharing experiences. In client countries the KSL activities are closely linked to capacity building. An activity's contribution to capacity building is an important criterion when funding for the project is considered. Many of the TFESSD activities have capacity building as one of their main objectives. Further, the Bank system itself generates a lot of KSL activities related to ongoing or completed projects. Presentations at brown bag lunches, concept meetings, etc. are a way for task teams to share experience and get substantive input from their peers. Such activities are used for quality enhancement, but also for task teams to share their achievements. KSL is the focus of annual ESSD and PREM weeks in the Bank. These learning weeks bring staff from all field offices and headquarters together, as well as sectoral and regional staff. Eight TFESSD projects were highlighted during ESSD week this year. TFESSD task team reports on KSL (see window reports in Chapter 2) support the findings of the stocktaking. Based on these observations, the Bank proposes not to initiate additional activities in the name of TFESSD. TFESSD-specific KSL targets trust fund partners and wider audience TFESSD-specific information is disseminated to a broader audience through two main media: the semi- annual conferences in Washington, Oslo and Helsinki, and the TFESSD website. The semi-annual conferences provide an opportunity for face-to-face KSL among the TFESSD partners and broader audiences. At the semi-annual December-meetings in Washington D.C., a selection of funded activities is presented by TTLs to the donors and reference group as well as to Bank staff. Such face-to- face interaction allows for more detailed substantive presentations and discussions of specific TFESSD activities, and it is also important for communication between TFESSD partners about trust fund core principles and "business." The annual June Conference in TFESSD donor countries is the only TFESSD initiated event that is directed towards a broad audience outside the Bank. This Conference is an opportunity to address TFESSD-related issues and present results from funded activities. On the occasion of the Conference this year, the Bank will present a booklet that describes how the fund works and provides examples of TFESSD activities. The website is a source of current information and answers to frequently asked questions about the TFESSD. Though it is available both externally and internally to the Bank, the annual Call for Proposal "pulls" Bank staff to the website. Since the December 2004 meeting of TFESSD partners, the website has been updated and further developed. This work will continue. As agreed with the donors and the reference group, it consists of TFESSD-specific information only; however links to other web pages are provided for thematic issues. As a new source of KSL, the Bank is exploring the possibility to establish a database of TFESSD activities. In order to ensure that the creation and maintenance of the database do not demand too many resources, the Bank plans to pilot by including progress reports from ongoing projects as the main source 3 of data. In the next reporting in December 2005, task team leaders will be asked to select from a set of keywords (theme, region, methodology, etc.) that describe their project. These words will serve as search words for the database, making it easier for potential consultants, trust fund donors and others to find relevant information on ongoing activities. 4 2. WINDOW REPORTS A. SUMMARY Trends in window focus. The focus of the social and environment windows is on implementing sectoral strategies. While the environment window has had this focus from early on, the social window focused on ensuring that CDD was mainstreamed in Bank operations while it developed and launched its sectoral strategy. The two newer windows, poverty and social protection, focus on specific themes and development of new instruments. Overall numbers. There are 137 ongoing TFESSD activities, distributed among windows as follows: 52 in social, 48 in environment, 27 in poverty, and 10 in social protection. Of the ongoing activities, 12 were funded in FY00-02, 29 in FY03, 38 in FY04, and 58 in FY05. Since the TFESSD began, 90 activities have been completed, with 25 from the social window, 38 from environment window, and 27 from poverty window. Seventeen activities have closed during this reporting period (6 in the social, 8 in environment, and 3 in poverty). Expenditures: disbursements and commitments. As of April 30, 2005, the Social Window disbursed or committed $17.2 m (88%) of the total $ 19.5 m. received to date. Of this, $7.3 m (42%) was disbursed to activities in Africa. Activities approved prior to FY03 have disbursed or committed 95% of total receipts. For activities that began in FY03, 92% of total receipts have been either disbursed or committed to date. FY04 activities show 87% of total receipts either disbursed or committed to date, while FY05 activities have disbursed or committed 63% of total receipts. The Environment Window portfolio is performing very well. As of April 30, 2005, the Environment Window has received $26.5 million of which $24 million (91%) has been committed and disbursed. Of the $24 million, $10.6 million (44%) has gone to Africa. The poverty window has improved disbursement ratios as projects move forward. Overall, 72 % of the funds received by the Poverty window have been disbursed. FY03-approved activities had used 80 % of the funds approved, and disbursements are expected to pick up in the next six months. FY04 activities had used 87 % of the funds approved (up from 82% in November 2004). FY05 activities had used 75 % of the funds approved (up from 41% in the previous period). As of April 30, 2005, 62 % of funds have gone to activities in Africa. Most of the activities funded under the SP window are also making good progress. By April 30th, SP window managers had committed or disbursed 37 % of the total TFESSD funds allocated ($408,000) and anticipate substantial spending between now and the end of FY05. By June 30th, we anticipate that 65 % of FY05 allocations will be committed or disbursed, slightly less than our estimate of 78 % at the beginning of the year, but nonetheless adequate progress. Strategic review of portfolio by window. Review of the social window portfolio resulted in one closure and one reduction of allocation, thus $580,000 is available for reallocation. Review of environment activities resulted in two closures and approximately $500k available for reallocation. Five poverty window activities were granted extensions to allow extra time to build stronger ownership among government and key stakeholders and allow for sufficient time to complete analysis. Nine of ten SP window activities were initially planned to close by June 30, 2005 (end-FY05). Four projects will close on schedule, and the remaining five have requested extensions. Task team leaders for three SP activities have proposed adjustments in scope and timing of outputs. 5 Partnerships. Partnerships continue to be an important part of TFESSD activities, for leveraging both financial and human resources. Window reports on partnerships include information about local, Norwegian and Finnish, UN and other types of institutional partners. See more information on partnerships in chapter 3B. For the next semi-annual reporting, the secretariat will work out a common outline for the window reports. This should make the reporting more coherent. The secretariat will also propose a common procedure for the strategic portfolio review of the Sector Boards. Use of ETCs. The amendment of the agreement between the donors and the World Bank, signed in June 2004, allows for the inclusion of fees and benefits for Extended Term Consultants among expenditures eligible under the TF. Task Managers are asked to report on the use of ETCs. So far only the Social Development Window (in fourteen activities) and the Environment Window (in six activities) have engaged ETCs under the trust fund. The ETC expenses as % of FY05 disbursement for individual activities vary from 0.6 to 92.7 %. The ETC expenses as share of the overall trust fund FY05 disbursement is 3.2 %. The share related to each project is given in the last column in the portfolio table, annex 5. B. SOCIAL DEVELOPMENT WINDOW 1. This report covers achievements of the TFESSD Social Window during the period November 2004 to April 2005. It is divided into three sections: Part I provides a strategic overview of the Social Window, including impacts of the TFESSD, work on knowledge sharing, and capacity building; Part II summarizes overall progress and implementation status of the window; and Part III looks at partnerships. This report does not include summaries of each of the funded activities, which are being submitted separately. 2. The Social Window currently has a total of 52 ongoing activities. These consist of: (a) 2 activities originally funded in FY00-02, one of which is due to close end-June 2005, while the other is the ongoing co-terminous position of the Social Window Manager; (b) 11 activities approved in FY03; (d) 15 activities approved in FY04; and (e) 24 activities approved in FY05. In addition, 6 activities closed during the reporting period (see para. 23 below). Overall, implementation progress has been good, with 88% of the funds received either disbursed or committed (see para. 24 below) 3. The TFESSD has been key in financing innovative, catalytic activities which have helped the Bank to deepen its knowledge and has contributed to the development of new tools and instruments, such as PSIA, CSA, and new strategies. It has facilitated and pushed for new ways of thinking and integrating social development into the World Bank's agenda. It has helped finance the Social Development Strategy, which articulates clearly the Bank's direction on social development over the next few years. One of the key priorities of the SD Strategy, which was approved by the World Bank Executive Directors in February 2005, is to bring concern for socially inclusive, cohesive and accountable institutions into macro strategies and policies, and the continued support of the TFESSD is important as we move ahead. The strategy is about people-centered development. It aims to empower people, by providing them with capabilities and resources (human, social, capital, economic, infrastructure) and connects them with enabling and viable institutions for growth and development. 4. It is of interest to note the changing trend of social window activities financed under the trust fund since it was established. One of the early priorities of social window activities funded between FY00-02 was to promote and mainstream the use of CDD approaches around the Bank, using analytical work, small pilots, training and capacity building. Most of the objectives were met and new Bank lending 6 to projects that incorporate CDD approaches doubled from $1 billion in FY00 to an average of $2 billion per year between FY01-04, with the Africa region having the biggest growth in portfolio. The focus of the social window in FY03 to FY04 evolved towards development of the SD Strategy, as well as moving beyond mainstreaming social development at the project level to doing more at the programmatic and policy levels. Work has been done on scaling up and strengthening linkages between CDD, local level institutions, decentralization and governance, as well as reviewing the impacts of CDD. There has also been a strong focus on supporting and promoting social accountability and participatory monitoring in PRSP and PRSC processes. In FY05, several Country Social Analysis pilots were funded, which are being done upstream as inputs into the PRSP or Country Assistance Strategy. FY06 funding for the Social Window is expected to support activities aimed at implementing the SD Strategy, and supporting work on development policy lending. I. STRATEGIC OBJECTIVES: IMPACTS, KNOWLEDGE SHARING, AND CAPACITY BUILDING 5. Impacts. Many leading indicators suggest that the Social Window activities have started to significantly influence ways of doing business in countries and at the Bank, both at the macro and micro levels. Some examples follow below, grouped around the major themes covered under the Social Window: (a) Community-Driven Development; (b) Social Inclusion and Diversity in Decision-making; (c) Poverty, Social Impact, and Empowerment; (d) Innovations for Improved Governance and Social Accountability; (e) Country/Macro Level Social Analysis; and (f) Global and Regional Social Development Strategies and Initiatives. Community-Driven Development 6. The earlier activities funded in Africa on CDD have led to major implications in several countries. For example, CDD activities funded have resulted in a decision by the region's leadership team to focus on harmonization of the IDA portfolio and the development of country specific CDD policies, facilitated by During the harmonization review the Bank Teams. The significant collaboration between the meeting with all the 5 CDD Project country teams as well as task managers managing the CDD Directors in Senegal, a senior policy activities/ projects have created a favorable working maker quotes "this is the first time we environment for the teams, but more importantly, the "Bank are holistically seeing the contribution Team" has facilitated national governments to develop each CDD project makes to the frameworks for harmonizing and scaling up CDD. The development of Senegal - now we can take the good from each and develop a Nigerian government is currently in the process of developing national program that will serve the a national programmatic approach to CDD, while Senegal, interest of the poor, and help strengthen Uganda, and the Gambia are harmonizing their CDD our government institutions" programs. Senegal's Ministry of Decentralization is leading the national CDD policies and program for scaling up. The Bank and other donors are working with this Ministry to facilitate and move the decentralization process forward. 7. The development of the AAA CDD Toolkit, which supports governments to create policy and enabling environment, with clear strategies for empowering communities, empowering local government, re-aligning the role of central governments, and capacity building, has been piloted in Mozambique, Senegal, Madagascar, and there is current demand from Rwanda, Lesotho and South Africa. 8. Other CDD activities have been integrated into Bank operations (e.g. the results of the Rwanda Enhancing Capacity for Poverty Reduction initiative, aimed at empowering communities through capacity building have been integrated and operationalized into the Rural Support Development Project funded by the World Bank; while the pilots funded under the Civil Society Engagement in LICUS countries have fed into the country strategies and programs for Guinea Bissau and Angola. 7 Social Inclusion and Diversity in Decision-making 9. The research on indigenous people and poverty in Latin America - Bolivia, Ecuador, Guatemala, Mexico, Peru (TF052596) has resulted in the formulation of policies for inclusion of these groups for poverty reduction and inequality, and institutions taking into consideration indigenous communities preferences in delivery of social services. The work on gender and conflict in Mindanao (TF051773) led to the development of gender policies and operational guidance to mainstream gender in the sub- project management cycle; it has further developed a gender sensitive training program for improved sustainable peace and development. The project on race and social inclusion in population information gathering (TF052597) has supported the collection of disaggregated data on race in Ecuador, Honduras and Columbia and has helped advance coordination, technical support and policy dialogue on race and social inclusion with the MECOVI project. Poverty, Social Impact, and Empowerment 10. Poverty and Social Impact Analysis (PSIA) is a collaborative activity of the PREM Poverty and Social Development Groups (the majority of PSIAs are listed under the Poverty Window). TFESSD financed 12 PSIA pilots whose impact is discussed more broadly within Annex 1. The most significant impact of the pilots was the ability to test approaches and leverage additional Bank resources to scale up rapidly, which allowed PSIA to be integrated within the operational policy (OP 8.60) for Development Policy Lending and mainstreamed to implement more than 100 PSIAs within three years to support PRSCs and other policy-based loans. In Africa, the TFESSD has supported PSIA work in several countries which have contributed to policy dialogue (see para.15 below). Innovations for Improved Governance and Social Accountability 11. The work on social accountability has helped strengthen accountability processes in several countries in all regions, including Uganda, Chad, Benin, Malawi, Gambia, Kenya, Nicaragua, Honduras and Bolivia, where social accountability is being integrated into the PRSC. Innovations such as participatory budgeting, citizen report cards, and independent budget analysis are seen as important inputs into public expenditure management at all levels of society. In Chad, after completion of the Accountability and Participation Training, many villages are continuing to create Development Committees and using project tools to assist in the creation of local development plans 12. Many of these social accountability tools are being applied in the context of the PRSP, but increasingly requests are coming from across different Bank units and country programs and sector units, eager for feedback mechanisms to assess impacts on the poor and vulnerable. Similar experiences can be seen in ECA where the TFESSD is funding several activities which are helping to strengthen the interface between communities and local governments, and is helping to strengthen the overall basis for decision making at the local level (e.g. Albania and Kyrgyz Republic (TF052580), where local governments in both countries have expressed interest in implementing social accountability mechanisms in their future budget cycles). Country/Macro Level Social Analysis 13. Activities focusing on country or macro-analysis have just started implementation in FY05. While it is too early to assess impacts, early results are promising. In the Kenya CSA (TF053968), the study's methodological approach combining quantitative and qualitative approaches has proved most effective. The findings emanating from the study highlight social crisis at household and community levels under the impact of institutional decline, HIV/AIDs and natural resources management. These 8 kinds of analyses will contribute to policy dialogue at national levels. The Yemen CSA (TF053859) has produced two background draft reports on the socioeconomic, cultural, political and institutional context of Yemen, and is part of the current dialogue on the PRSP and CAS. Global and Regional Social Development Strategies and Initiatives 14. As mentioned earlier, the SD Strategy which was approved by the Bank's Executive Board in February 2005, has set the direction for Bank work in this area over the next few years. Focus will now be on implementation of the Strategy, as well as analytical work to help strengthen areas under the strategy. The TFESSD has supported the implementation of the MENA Social Development Strategy (TF053243) which has now been translated into French for wider dissemination within the region. The issue of youth exclusion has been highlighted and selected as one of the main themes for a regional MENA Report. The implementation of the strategy thus far has helped strengthen social development inputs (youth, community development, decentralization, gender) into the content of the 2005 Morocco CAS and the upcoming Egypt CAS. A CDD review has been initiated to reflect the regional CDD experiences and will serve as a background discussion for the upcoming CDD regional conference in the fall of 2005. 15. The Africa region Social Development Strategy (TF052655) has supported a number of PSIAs and social analytic studies in Ghana, Liberia, Chad, Kenya, Mauritania, Uganda, Sudan, DRC, and Tanzania. Results from PSIAs in Tanzania and Ghana are currently being used in the policy dialogue. The CAS in Uganda now has a pillar on peace and security, the strategic plan for Youth and development in Africa is finalized, the social/conflict risk analysis for Sudan is being used in the Joint Assessment Mission Report to inform operations, and the Liberia Analysis continues to inform operations. In all of these operations, the PRSC expenditures are expected to be more transparent and accountable to citizens; and private sector investment will be more socially sustainable as a result of this analytic work. 16. Knowledge Sharing. All of the projects have some form of knowledge sharing activities either ongoing or planned. These include activities within client countries, knowledge sharing and dissemination to Bank staff, and/or with other international or bilateral organizations. Brown bag lunches, dissemination notes, brochures, toolkits, case studies, reports and publications have been key tools used for knowledge sharing, as has the use of workshops, conferences, Global Distance Learning Network (GDLN), and dialogues (both in-country and regional) for discussing and sharing experiences. Examples of some of the knowledge sharing activities are listed below: · Multi-stakeholder (World Bank, UNDP, Government) dialogues or workshops in client countries took place in: · Rwanda Exhancing Capacity through Research and Action for Poverty Reduction Activities (TF052610); · Potential for Civil Society Engagement in LICUS (TF052753); · LCR Enhancing Social Accountability through Citizen Participation in M&E of Public Spending (TF051594); · Philippines Gender and Conflict in Mindanao (TF051773); · CDD in Conflict Contexts (TF051772); · Vulnerability among the Displaced in the Caucasus (TF052874). · A Regional workshop for CDD/Social Fund practitioners (in Tanzania, Zambia, Malawi, Kenya, Uganda, Ghana,) was held in Zambia to learn and share experiences in implementing CDD activities for empowering communities and local government. As a result, the Tanzania CDD 9 Social Action Fund organized a study visit to the Malawi Social Action Fund to learn and adapt the process of facilitating community empowerment to their own program. · Orientation workshops on social accountability has been organized for 200 participants in Ethiopia, Chad and Togo (TF052835 Promoting Social Accountability in Africa) · Dissemination notes, toolkits, case studies, reports and papers have been issued for several activities including: Potential for Civil Society Engagement in LICUS (Guinea Bissau ­ TF052753); Promoting Social and Public Accountability in Africa (TF052835); Participatory Monitoring of the Gambia PRSP(TF051839 ; Change Governance in Africa(TF053982); GLIA on HIV/AIDS and Refugees(TF053609); Capacity Building and Piloting of Social Accountability Initiatives for CDD in SAR (TF053870); Indigenous People and Poverty in Latin America (TF052596) (also presented at several workshops and conferences, including UN and academic professionals); Race and Social Inclusion in Population Information Gathering Instruments(TF052597); and CDD AAA toolkit TF024909); · Web maintenance, newsletters, briefs have been used in Capacity Building Network for Community Empowerment (TF051322); Virtual Learning Environment (VLE) for CDD Approaches/ Principles (TF024909). In addition, the design of the Bank-wide TFESSD website has been improved and the contents are being updated on a regular basis. 17. In addition to the above, several presentations and case studies based on TFESSD-funded activities were made to Bank staff during ESSD Week in March 2005 ­ these included sessions on social accountability, CDD and Conflict, Social Capital, Country Social Analysis, Networks for Community Empowerment, and a MNA Youth Session. 18. Capacity Building. Strengthening the capacity of clients, civil society organizations and communities has been a key focus in the majority of the social window activities, in their efforts to promote inclusion, cohesion and social accountability. The Africa Region CDD Capacity building program over the past few years has build the institutional capacity of over 21 African governments (including Ministers of Finance) on CDD approaches to development, and has created a network of CDD facilitators in Africa, who work both within their countries as well as other African countries to support CDD operations and policies. Several other activities have focused on building in-country capacity in order to strengthen local governance and promote social accountability through the use of participatory monitoring tools such citizen report cards and participatory budgeting. Examples (by no means exhaustive) of some of these activities include: · Promoting Social and Public Accountability in Africa (TF051835) · Enhancing Accountability of Institutions in LAC (TF051594) · Participatory Monitoring and Social Accountability in Armenia (TF051836) · Support for Social Accountability in the Gambia Poverty Reduction Strategy (TF051839) · Enhancing Capacity for Poverty Reduction Activities in Rwanda (TF052610) · Chad PRSP in Rural Areas and Stakeholder Capacity Building (TF051861) · Strengthening Local Governance and Accountability in ECA (TF052580) · Chad: Development and Delivery of Accountability and Participation Training Modules (TF052539) · Africa: Potential for Civil Society Engagement in LICUS Countries (TF052753) · Local Governance and Empowerment in India (TF052915) · Improving the Environment for Civic Engagement in Albania and Honduras (TF051838) · Chad PRSP in Rural Areas and Stakeholder Capacity Building (TF051861) 10 · Enhancing Community Empowerment and Accountability in Uganda's Health Sector (TF053769) · Participatory Budgeting Knowledge and Action Support Centers (TF053889) · Supporting the Implementation of the MNA SD Strategy (TF053243) · Strengthening Governance in Ecuador (TF053881) · Capacity Building Network for Community Empowerment (TF051322) · Africa Conflict and Development Capacity Building Program (TF053919) 19. Other efforts at capacity building involve the use of local institutions and local consultants in carrying out in-country research and training activities. For example, the activity Investing in Social Capital through CDD (TF051253) has enhanced the capacity of local institutions and utilized them to implement the formation of social capital mechanisms to enhance CDD projects. The success of this initiative has been mainstreamed into Bank-supported CDD operations in Sierra Leone, Thailand, Albania, Sao Tome, and the Philippines. 20. The activity on Strengthening Governance in Ecuador (TF053881) has also enhanced the capacity of government to support transparency, fiscal literacy and social auditing. This activity has enabled the government to set up systems for accessing information to civil society, who in turn monitor and analyze the budget through citizen's report cards, thereby holding the government accountable. 21. Promoting Social Accountability in Africa (TF051835) has enhanced both the capacity of governments and civil society groups to implement and scale up social accountability mechanisms in PRSP, CDD operations, decentralization etc. Citizens are trained to used citizen report cards (to monitor the fiscal budget and financial expenditure) and community score cards to evaluate in a participatory manner the efficiency and effectiveness of service delivery. II. OVERALL IMPLEMENTATION PROGRESS OF THE SOCIAL WINDOW Overview of the activities 22. Activities funded under the Social Window have generally progressed well over the past six months. Activities in the current portfolio are well aligned with strategic and country priorities and the majority of activities are on track in terms of implementation. Three Africa-based activities funded in FY05 have been slow to begin implementation (TF053926 Enhancing Social Accountability in Kenya, TF054202 Civil Society Capacity Building, and TF 053792 Promoting Citizen Empowerment in Chad), but preliminary work has been underway and the TTLs for these activities expect implementation to speed up over the coming months. 23. Six activities closed during the reporting period, namely: · TF051594 - Enhancing Accountability of Institutions through Citizen Participation · TF051948 - Africa Local Level Institutions and Macro Impact · TF052539 - CDD Accountability and Participation Training Modules · TF052753 - Potential for Civil Society Engagement in LICUS · TF052870 - Sri Lanka: Measuring Social Cohesion in Conflict-Affected Communities · TF053609 - GLIA on HIV/AIDS and Refugees Completion reports have been submitted for all activities and are submitted separately. Two of the completed activities were rated as unsatisfactory: TF052870 Sri Lanka, Measuring Social Cohesion in Conflict-Affected Countries was unable to complete all work due to the deterioration of the political situation in Sri Lanka which precluded the work from continuing. TF051948, the Africa LLI activity, was also rated as unsatisfactory on completion as key activities were unable to take place due to the 11 retirement of the original task manager and the unavailability of consultants to continue the work. All other closed activities were satisfactorily completed and their impacts are included in the section on impacts above. Disbursements and Commitments 24. Social Window expenditures have been commendable to date. As of April 30, 2005, the Social Window has disbursed or committed $17.2 m (88%) of the total $ 19.5 m. received to date. Of this amount, $7.3 m (42%) has gone towards activities in the Africa region. As mentioned earlier in this report, three Africa activities funded in FY05 have been slow to begin implementation, while another FY04 activity in Tanzania has had its funding reduced under the Strategic Review done by the Social Development Board, due to implementation problems. Activities approved prior to FY03 have disbursed or committed 95% of total receipts. For activities that began in FY03, 92% of total receipts have been either disbursed or committed to date. FY04 activities show 87% of total receipts either disbursed or committed to date, while FY05 activities have disbursed or committed 63% of total receipts. Cumulative % of Africa Portion Disbursements / receipts of Receipts Commitments Disbursements disbursed / Disbursements/ Social Window (US$) as of 4/30/05 as of 4/30/05 committed Commitments Activities approved prior to FY03 6,895,962 6,560,197 6,675,779 95% 3,256,733 Activities approved in FY03 6,387,467 5,851,724 4,195,484 92% 1,829,565 Activities approved in FY04 3,905,420 3,380,577 1,770,907 87% 1,522,311 Activities approved in FY05 2,284,000 1,438,672 705,325 63% 654,568 Total 19,472,848 17,231,170 13,347,495 88% 7,263,177 Annual SD Board Strategic Review 25. The annual strategic review continues to be an important opportunity to review progress of activities, identify any implementation bottlenecks, and take corrective actions as appropriate. The SD Board conducted its fourth annual strategic review of the Social Window portfolio in April 2005, which covered 12 ongoing social window activities set up in FY04 (see Attachment 1 for complete list of activities reviewed, and criteria for review). The review indicated that the majority of the activities were progressing well, although two activities were experiencing some implementation and disbursement bottlenecks. The SD Board agreed that funding for two activities that were slow to implement would be reduced and reallocated (Tanzania Intangible Benefits of TASAF; and EAP Sustainable Development on the Urban Fringe). However, after further discussions with the EAP task manager, in view of the fact that the procurement process was underway for committing $450,000, the Board agreed to reinstate it at a level of funding sufficient to honor all existing commitments. The Board's decisions follow: · TF052781 (Intangible Benefits of TASAF) - grant amount, which was originally $179,000 was reduced to $63,500 with a new closing date of December 31, 2005 · TF052785 (EAP Sustainable Development in Urban Areas) - grant amount, which was originally $730,000 was reduced to $505,000. However, if no commitments or progress is shown by July 1, 2005 the overall grant amount will be reduced to $256,000. As a result of the reallocations from the above two activities and savings from activities which closed over the past year, a total of $580,000 is available for reallocation. After review of the activities which 12 had requested additional funding, and based on regional priorities, the SD Board approved the following additional allocations of funding, totaling $580,000: · TTF051253 - Investing in Social Capital through CDD (for regional work) - $185,000, out of which $85,000 is allocated to Senegal Social Capital in the Casamance Region. · TF051589 - Social Development Strategy (for use by the regions) - $ 345,000 · TF051772 - CDD in Conflict Contexts - $50,000 III. PARTNERSHIPS 26. Overview of Partnerships with Institutions. Most Social Window activities have needed to engage in partnerships with other institutions in order to achieve project objectives. The precise nature of these partnerships and institutional partners has depended on the type of activity and objectives. Since TFESSD places significance on transfer of skills and in-country capacity, and to a lesser extent on transfer of knowledge among UN agencies, collaborations needed to build in-country capacity around a specific theme have been cultivated under most Social Window projects. Partnerships with four types of institutions are discussed in this section: (i) Local; (ii) Norwegian and Finnish; (iii) UN, and, (iv) Other. Social Window activities have varied significantly in terms of the extent to which they have engaged in partnerships for knowledge transfer and implementation. In terms of percentage of grant amounts spent on partnerships (our main indicators), the numbers range from 0% to 100%, and the average was 26%. 27. Partnerships with Local Institutions. This has been by far the most active category of partnerships between within Social Window activities. Funds allocated to partnerships with local institutions accounts for about 82% of all partnerships expenditures among the ongoing activities and Social Window TTLs rely more on local institutions than on other partnerships for in-country activities. In seeking out local partners, selection has predominantly been based on expertise and experience, and is consistent with normal World Bank procurement procedures. 28. Partnerships with Norwegian and Finnish Institutions. To date, about 2% of funds spent on institutional partnerships in the Social Window ongoing activities have been spent on partnerships with Norwegian and Finnish institutions. One of the difficulties for TTLs has been in identifying Norwegian and Finnish institutional partners that are internationally competitive in social development related themes. This is in part due to knowledge gap on the part of TTLs who admit insufficient knowledge of Norwegian and Finnish institutions. The strongest partnership in terms of percentage of expenditure seems to have been with Norwegian institutions in the context of the SD Strategy, where 12% of the funds were used in that partnership. 29. Partnerships with UN Agencies. Social Window task team leaders have so far not spent any funds on institutional partnerships with UN Agencies. However, they report extensive partnerships and collaboration with UN agencies (especially UNDP and UNHCR). These partnerships have ranged from programmatic coordination to joint implementation of activities, and are helping to support local institutions to implement various aspects of TFESSD activities. 30. Other Partnerships. This category accounts for about 14% of all funds spent on institutional partnerships, according to reports from TTLs implementing Social Window activities. This is the second largest category of expenditure on partnerships. It covers expenditures on partnerships with institutions from other Nordic and developed countries, international and regional NGOs. Following World Bank procurement procedures, partnering institutions are usually selected on a competitive basis, taking into account experience and expertise. Bilateral agencies (e.g. DANIDA, GTZ, and CIDA), and Foundations 13 (Soros) have also partnered with Social Window activities, but usually in terms of programmatic coordination or joint implementation as with UN agencies, and TFESSD funds are not normally being expended on such partnerships. 31. Use of Extended-Term Consultants (ETCs) ­ As agreed with the donors last June, in light of the change in Bank procedures for hiring of consultants, funding of extended term consultants under the TFESSD is permitted. Social Window activities have committed approximately 5% of their funds towards the use of ETCs, many of whom support several different TF activities. 14 ATTACHMENT 1 Social Window Activities - Evaluation by the SD Board in FY05 - (FY04 Projects) Activity Trust Task Current Weighted Secretariat SD Board Correspond- New Fund Team Grant total Recommendati Decision ing Grant No. Leader Amount score on Reduction Amount (US$000) (US$000) (US$00 0) China Farmers TF05255 A. Fock 315 18 Proceed as No action 0.0 0.0 Association 0 programmed required ECA Strengthening TF05258 M. 410 17 Proceed as No action 0.0 0.0 Local Governance 0 Woodwar programmed required and Accountability d Indigenous Peoples TF05259 H. 160 16 Proceed as No action 0.0 0.0 and Poverty in LAC 6 Patrinos programmed required Race & Social TF05259 J. Stubbs 305 16 Proceed as No action 0.0 0.0 Inclusion in 7 programmed required Population Info. Gathering Rwanda/Sudan - TF05261 K. Sirker 60 14 Since available No action 0.0 0.0 Enhancing Capacity 0 funding is required for Poverty minimal, no Reduction action Initiatives required. Africa SD Strategic TF05265 M. 905 17 Proceed as No action 0.0 0.0 Analysis and 5 Correia programmed required Implementation of Policy Reforms Benin Participatory TF05267 R. 245 19 Proceed as No action 0.0 0.0 Monitoring of 1 Forster programmed required PRSP Implementation Tanzania: TF05278 N. 179 10 Close activity Reallocate 116.0 63.5 Intangible Benefits 1 Mungai end-June 2005. $116 K of of TASAF Lenneiye Scale back $167 K remaining available. grant amount by 70% EAP Sustainable TF05278 D. Biller 730 12 Close activity Since the TTL 225.0 505.0 Dev. In Urban 5 end-June 2005. is in the Areas Scale back process of remaining procurement grant amount arrangements by 70% for $450K funding towards this commitment will be given. However, if no commitments or progress is seen by July 1, 2005, the overall grant amount will be 15 reduced to $256K. Activity Trust Task Current Weighted Secretariat SD Board Correspond- New Fund Team Grant total Recommendati Decision ing Grant No. Leader Amount score on Reduction Amount (US$000) (US$000) (US$00 0) South Caucasus - TF05287 A. Marc 220 18 Proceed as No action 0.0 0.0 Addressing 4 programmed required Vulnerability & Exclusion India Local TF05291 M. Van 440 16 Proceed as No action 0.0 0.0 Governance and 5 Den programmed required Empowerment Boogaard Supporting the TF05324 B. 370 17 Proceed as No action 0.0 0.0 Implementation of 3 Souhlal programmed required the MNA Strategy TFESSD SOCIAL WINDOW REVIEW OF PROGRESS OF FUNDED ACTIVITIES CRITERIA FOR FY05 EVALUATION The same criteria that were used in FY03 and FY04 for evaluating activity progress and deciding on allocations and reallocations were used, namely: 1. Implementation Progress 2. Disbursement Progress 3. Continued Operational Relevance 4. Spillover Effects 5. Sustainability of Interventions 16 to 20 points: project proceeds as programmed. No actions taken. 13 to 15 points: project scaled back; remaining allocation reduced by 50%. 10 to 12 points: scale back total remaining grant amount by 70%, close activity at the end of this fiscal year and resources reallocated 9 points or less: close activity by the end of the current fiscal year with no additional allocations and reallocate resources. 16 Evaluation Criteria: 1. Implementation Progress in Relation to Proposal Objectives. (25%) 0 No movement or very slow movement 1 Slow; significantly behind schedule and will not be completed on time. 2 Moderate; somewhat/slightly behind schedule, and not likely to be completed on time. 3 On track; likely to be completed by on time. 4 Ahead of schedule; will be completed ahead of original schedule. 2. Disbursement Progress (25%) 0 Very slow; most funds not likely to be utilized by activity closing date. 1 Slow; substantial amount of the funds likely to be unspent by activity closing date. 2 Moderate; some funds likely to be unspent by activity closing date. 3 Good/on track; most of funds likely to be utilized by activity closing date. 4 Very Good; funds likely to be utilized by activity closing date. 3. Continued Operational Relevance (15%) Operational relevance will be judged on the following criteria: (i) links to formal ESW, (ii) links to CAS, (iii) country team endorsement, (iv) endorsed by regional management 0 No obvious operational links 1 Clearly fulfills at least one of the above operational relevance criteria 2 Clear fulfills at least two of the above operational relevance criteria 3 Clearly fulfills at least three of the above operational relevance criteria 4 Clearly fulfills all four of the above operational relevance criteria 4. Spillover Effects: Influences or develops cutting edge tools or processes (macro or micro); resulting positive externalities (10%): 0 Not at all 1 Minimally 2 Somewhat 3 Moderately 4 Significantly 5. Sustainability of Interventions: Effectively builds local capacity in targeted countries on the specific theme; cost-sharing--BB or by client (25%): 0 No capacity building 1 Minimal capacity building 2 Moderate capacity building 3 Significant Capacity Building 4 Major Capacity Building C. ENVIRONMENT WINDOW 1. This report covers the progress and achievements of activities funded under the Environment Window during the period of November 2004 to April 2005. It is divided into two sections: Part I summarizes the overall progress and implementation status of the window; Part II provides a strategic overview, including impact of TFESSD, knowledge sharing, capacity building and partnerships. 17 2. The Bank's analytical work on environment and natural resource management is supported through a mixture of Bank budgetary allocations and TFESSD has played an increasingly important role in financing analytical work on environmental issues. The Environment Window's portfolio of ongoing projects can be categorized in two main groups of activities directly linked to the Environment Strategy: (a) Strengthening analytical and advisory activities (AAA) ­ the foundation for defining strategic environmental priorities, supporting the strengthening of country capacity for good environmental management, and informing policy dialogue and decisions on projects and programs. This group is further divided into five subject areas: · Environmental Governance; · Poverty-Environment Linkages; · Methodology and Tool Development; · Environment in Sectoral Planning; and · Environment in PRSPs and CASs. (b) Addressing environmental priorities through project and program design. The Strategy calls for improving the design and performance of environmental projects and components; coordinating investments and policy reforms; enhancing the environmental outcome of development policy lending; and supporting capacity development. 3. By strengthening and improving these key Bank instruments, namely AAA and projects and programs, we aim to assist our client countries to improve their capacity for sustainable environmental management namely, by supporting improvements in policy, regulatory and institutional frameworks for sound management of environment and natural resources and enhancing the dialogue between governments and other stakeholders in society to build stronger environmental constituencies with the ultimate aim of improving quality of life and growth. I. OVERALL IMPLEMENTATION PROGRESS OF ACTIVITIES IN THE ENVIRONMENT WINDOW A. Status of Portfolio 4. As of April 30, 2005, the Environment Window Figure 2.1 - TFESSD Environment Window has 48 active projects and 38 completed projects Distribution of Active and Closed Projects (see Figure 2.1). The distribution of active projects by year of approval is as follows: 1 Completed from FY00; 8 from FY01; 1 from FY02; 13 projects Active from FY03; 13 from FY04; and 12 from FY05. (38)44% projects (48) 56% The status and projections of fund utilization under each of these projects is shown in detail in the Overall Portfolio Table and the detailed progress reports will be sent separately in a CD- ROM. 5. Of the 48 active projects, 30 are managed by the six operating regions of the Bank, of which, nine are managed by the Africa region. Of the regionally managed projects, about 90% are handled by ESSD units, and the rest are shared between Poverty, Urban Infrastructure, and Legal units. The rest of the active projects are managed in the central units of the Bank (e.g., Environment Anchor; World Bank Institute (WBI); Agricultural and Rural Development Anchor (ARD), the Social Development Department (SDV), etc.). 18 6. Closed Activities and Closing Date Extensions. Eight projects have closed between November 2004 and April 2005 (see list below), and another seven are scheduled to close by the end of June 2005. · TF024693 ­ Community-based Mechanisms to Enhance Land Access & Tenure Security for the Poor · TF024817 ­ Africa Environmental Risk Management Phase I & II · TF051319 ­ Institutions & Governance in the MNA Region · TF051420 ­ Governance of Natural Resources · TF051421 ­ Marine & Coastal Resources Management, Tanzania · TF051771 ­ Watershed Externalities & Local Institutions in India · TF051786 ­ Poverty Impacts of Payments for Environmental Services · TF051812 ­ Honduras: Eco/Cultural Tourism Development, Environmental & Social Dimensions 7. These completed activities represent a diverse group that has resulted in tangible impacts and a variety of focused research upstream analyses (please refer to Part II). For example, the Marine & Coastal Resources Management, Tanzania carried out a series of studies on ecological characteristics of marine protected areas; socio-economic conditions; poverty among coastal communities, sustainable financing for marine protected areas, legal and institutional issues associated with Tanzania's management of its marine and coastal resources. 8. Closing Date Extensions. Extensions of closing dates were granted for eight activities which had delays for justifiable reasons (e.g., delays in operational cycle, but that were closely aligned with regional priorities (e.g., TF052721 - Environment Millennium Development Goal in ECA; TF052820 - LCR Strategic Program on Environmental Mainstreaming). A few projects were delayed due to the volatile political situation in the Middle East and the war in Iraq. Expenditures: Disbursements and Commitments. 9. The Environment Window portfolio is performing very well. As of April 30, 2005, the Environment Window has received $26.5 million of which $24 million (91%) has been committed and disbursed. Of the $24.0 million, $10.6 million (44%) is allocated to Africa. It is important to note the increase in Africa share can be attributed to the improved implementation progress of TFESSD projects due to the recent restructuring of the ESSD department in the Africa Region and the appointment of a Lead Environmental Specialist who will play an important role in strengthening the governance structure of TFESSD. Cumulative % of Disbursement disbursed/ Africa Portion s / Commitment Available committed of Receipts Commitments s as of balance as of vs. Disbursements Environment Window (US$) as of 4/30/05 4/30/05 4/30/05 receipts /Commitments Activities approved prior to FY03 14,706,847 13,679,237 788,606 1,027,610 93% 5,948,563 Activities approved in FY03 6,731,777 6,325,502 575,293 406,275 94% 2,198,577 Activities approved in FY04 4,242,300 3,622,874 824,152 619,425 85% 1,906,100 Activities approved in FY05 769,500 420,483 248,528 349,017 55% 519,283 Total 26,450,424 24,048,096 2,436,579 2,402,327 91% 10,572,523 Portfolio Review and Implementation Update 19 10, A thorough review of all ongoing activities in the Environment Window was conducted and has resulted in approximately $500k savings from recently closed, fully and partially canceled projects. The review looked at the implementation and disbursement progress of each activity, with particular attention to problematic activities that were identified in last year's review. The review also looked at long outstanding commitments, recently closed activities and those that are due to close in June 30, 2005. While most the activities are well on target, two activities, TF052198, Developing Monitoring Indicators & Tools for Tracking Poverty Environment Issues; and (ii) TF052577, Energy & Environment Population Program, were experiencing implementation difficulties and will be canceled. The former was due to limited absorption capacity by the team and the latter was the inability of one of the main stakeholders to come to an agreement. The findings and recommendations from the review were presented to the Environment Sector Board on May 3, 2005 (see Attachment 1) and the Board plans to reallocate the savings to ongoing strategic programs. II. STRATEGIC OBJECTIVES: IMPACTS, KNOWLEDGE SHARING, CAPACITY BUILDING, AND PARTNERSHIPS 11. Most, if not all, of the activities under the Environment window have given heavy emphasis on building local capacity through knowledge sharing, learning and dissemination which has led to significant impacts that are directly linked to the 2 priority areas of the Environment Strategy as mentioned in paragraph 2 above. In view of the fact that considerable number of activities in the Environment Window have now matured, several activities have had significant and tangible impacts in terms of improved local capacity and country dialogues, development of new methodologies and tools for better environmental management, some have triggered interests and have built new and strengthened existing partnerships with local and international NGOs (e.g., WWF, Global Witness) bilateral agencies (GTZ, SIDA) and other multilateral agencies. The Environment Window activities have built a series of activities focused on poverty-alleviation based on sustainable environmental management. Some examples of these are highlighted below: Poverty-Environment Linkages · TF024693: Community-based Mechanisms to Enhance Land Access & Tenure Security for the Poor. The main objective of this activity was to raise the profile of land management especially in Africa, address gender issues, and develop low-cost and community-based systems of land rights recognition and dispute resolution. This activity has successfully met its objective and has addressed a key linkage between poverty and environment. One of the highlights of this activity was a Policy Research Report (PRR) on "Land Policies for Growth and Poverty Reduction" that has allowed to forge important institutional partnerships (e.g., UN-Habitat, and Federacion International des Geometres (FIG)) on developing tools and monitoring of global property rights indicators that will not only help the Bank to better fulfill its mission but also provide a platform for client countries to interact and share experiences. The PRR has been translated into 6 languages and served as content for capacity building programs. Knowledge sharing activities included dissemination of the PRR at large conferences with ministerial participation in London, Aguascalientes, Nairobi, and New York, sessions during the Bank's ESSD and PREM weeks, preparation of a chapter on land policy for a forthcoming publication by the OECD-DAC Povnet group, and a Bank-internal "guidance note" for task managers preparing projects involving a land purchase component. Finally, specific country-level impacts include Bank analysis leading to policy recommendations on India (impact of computerization, streamlining land administration, liberalization of land markets), Uganda (institutional reform, impact of women's knowledge of the new land law, impact of transferability of land on investment), and China (determinants of implementation of the new land law; productivity and equity impact of land markets). 20 Environmental Sectoral Planning and Methodology and Tool Development · TF051812: Honduras: Eco/Cultural Tourism Development, Environmental & Social Dimensions. This activity established a cross-sectoral framework for eco/cultural tourism development as a viable rural poverty reduction strategy in Honduras. A key impact of the project is the development of a Strategic Environmental Assessment (SEA) methodology that is now being used as a best practice in other countries (e.g., Brazil). The SEA provided recommendations that served as a framework to inform decision-making within the tourism sector and other relevant sectors, including modification of the environment and licensing legislation in the tourism sector; changes in the wastewater law to allow for a more sustainable management in tourism areas; and changes in the EIA legislation to allow for regional environmental assessment rather than project specific approach to tourism development. The program also fostered partnerships with private hotels and the tourism industry. It has supported Honduras' rural poverty reduction strategy based on eco/cultural tourism development, with particular attention to how tourism could be expanded and improved in culturally-rich and environmentally sensitive areas. In the context of social inclusion and social accountability, this activity has created new income generation opportunities based on indigenous knowledge and sustainable use of natural and cultural resources developed, including commercialization of tourism products with ethnic minority communities. Capacity building and education programs were designed to enhance learning on tourism products designed for local youth, based on the Maya culture, with the aim of improving the livelihoods of low income youth families. In terms of knowledge sharing, several reports were also published, e.g., (i) Environmental and Social Best Practice Guidelines for Tourism Development in Honduras; (ii) Human Resource Analysis: Improvement of Training and Educational Capacity for the Sustainable Development of the Honduran Development Strategy and Action Plan; (iii) Socio-Economic Issue Paper: Maximization of Income Generation and Social Inclusion in the Honduran Tourism Sector through Micro-Enterprise Development. Environmental Governance 1. TF051420: Governance of Natural Resources. The main objective of the project was to build a comprehensive knowledge base on the links between natural resources and conflict in order to produce a global action plan with policy options that can influence global governance of natural resources thereby cutting revenues and rents which are enabling conflicts to continue. The immediate beneficiaries were government policy-makers and officials, development researchers and practitioners, and those concerned in civil societies and in the private sector. In terms of knowledge sharing and dissemination, various reports were produced and the findings were published in books, journals and working papers i.e., "Natural Resources and Violent Conflict: Options and Actions" in August 2003; Journal of Conflict Resolution, and in the World Bank's Conflict Prevention and Reconstruction Unit's "Working Papers" series. A Liberia forest study was carried out and some of the key impacts were the establishment of UN sanctions against imports of Liberia timber as its illegal trading promoted conflict in Liberia and the study fed into the production of the Liberia Forest Sector Assessment Mission report, which recommended improvement in the timber governance structure. As a result of the publications, workshops, and bilateral talks by the project team members, the issue now appears on the agenda when the governments discuss conflict. Another key impact of the project is that those in the energy sector and those handling conflict- affected countries have new become more aware of the conflict dimension related to natural resource revenues (e.g., from oil) enabling them to make a stronger case for strengthening governance. It should also be noted that this project together with other initiatives such as the Extractive Industry Transparency Initiative (EITI) backed by the UK government and the Publish-What-You-Pay effort have all contributed in advancing the natural resource governance agenda. 21 Methodology and Tool Development and Building Country Capacity for Good Environmental Management · TF051534: The Potential Role of EA in Promoting Participation in Decision Making in SADC (The Calabash Project). The objective of this project was to identify and expand opportunities for civil society to engage in development decision-making through environmental assessment (EA) processes in the Southern African Development Committee (SADC). Calabash has benefited immensely from the partnership established with the Windhoek-based Southern African Institute for Environmental Assessment (SAIEA), a well-respected SADC-wide institute with strong linkages into the public and private sectors across the region. The Canadian International Development Agency seconded a senior officer to manage the project, and TFESSD provided all the operating funds. The focus of Calabash is to develop a research, information, communications and capacity building program that empowers communities, governments and civil society organizations to use public participation (PP) more effectively in EA processes. The knowledge sharing component of the Calabash project developed case studies of good practice, a procedural handbook on PP through EA, template terms of reference for including PP in EA studies and processes, a widely-distributed newsletter, a training manual to be piloted in May 2005, and a well-used web site. Calabash has successfully expanded the traditional concept of public participation to more broadly address governance and expand the political space in which civil society can influence development decision-making. It is truly encouraging that this broader project concept has been so widely embraced in the region, and that Calabash has been able to respond strongly, appropriately, pragmatically, and with sensitivity to social and political realities. Calabash has tapped into a felt need in SADC beyond and has earned wide recognition for its work, including a mention in the recent Commission for Africa report and a commendation from Ambassador Susan Sikaneta, Executive Secretary of the Southern African Regional Office of the African Union. 12. Partnering with other institutions, whether local or international has been an essential component in achieving the objectives of the activities in the Environment Window. Contributions of the Norwegian and Finnish institutions/consultants have also been key in areas of peace and conflict research (e.g., PRIO, NTNU), air quality and climate change, (e.g., CICERO), water resource management, environmental policies (e.g., ECON, NORPLAN). Collaboration with UN agencies, non-government organizations (e.g., World Wide Fund for Nature and Global Witness); bilateral development agencies (e.g., GTZ and SIDA); and other multilateral development banks (e.g., Asian Development Bank and African Development Bank) has also been key in building in-country capacity on specific themes. 13. In summary, TFESSD has become a key contributor in supporting the analytical underpinnings for mainstreaming environmental management efforts in the country dialogue and assistance programs thereby improving the body of knowledge that has helped the World Bank pursue its Environment Strategy. This is evidenced by the steady increase in the overall numbers of ESW and TA products with primary and secondary ENRM objectives (Figure 2 & 3). Lending for ENRM objectives has also been increasing steadily since FY02 and the Bank anticipates continued increase into FY05. 22 Figure 2: Number of delivered ESW and TA products with primary and secondary ENRM themes, fiscal 2002­ Figure 3: Number of delivered formal environmental 2005 (including supplementals) ESW reports, fiscal 2002­2005 25 23 200 EW 180 20 TA 160 81 16 140 15 14 120 10 100 10 80 74 57 60 36 116 5 40 20 46 42 45 0 FY 02 FY 03 FY 04 FY05 0 FY 02 FY 03 FY 04 FY 05 Note: Fiscal 2005 projections as of March 2005. The formal reports included are Country Environmental Analyses (CEAs), Other Environmental Studies (ENSs), Energy- Environment Reviews (EERs), Public Environmental 23 ATTACHMENT 1 TFESSD Annual Review of Environment Window Activities Savings from closed/canceled projects Financial data as of March 31, 2005 Unused Balance Canceled Task Manager/ Grant Total Notional (Cash Commit- Effec Closing TF No. Trust Fund Name Unit Amt Receipt Savings savings) ments Date Date Community-based Mechanisms to Enhance Land Access & K. Deininger 24693 Tenure Security for the Poor DECRG 315.0 315.0 26.95 29.92 Nov-00 30-Apr-05 J. Boyle 24817 AFR Env Risk Management AFTS1 1050.0 1050.0 61.61 0.00 Nov-00 31-Dec-04 24922 MNA: Energy-Env Reviews MNSRE 900.0 700.0 100.00 0.00 Dec-00 31-Dec-05 Governance of Natural K. Kuroda 51420 Resources SDV 435.0 435.0 27.68 0.00 Jul-02 31-Dec-04 Tanzania: Marine & Coastal I. Hewawasam 51421 Res. Mgt AFTS2 515.0 515.0 1.54 0.01 Jul-02 31-Mar-05 Watershed Externalities & G. Milne 51771 Local Inst in India SASAR 118.5 118.5 18.67 1.90 Jan-03 31-Dec-04 Honduras Eco/Cultural J.Quintero 51812 Tourism Devt LCSEO 300.0 300.0 4.66 9.89 Jan-03 31-Mar-05 Developing Monitoring Indicators & Tools for S. Margulis 52198 Tracking Pov Env Issues AFTS1 200.0 60.0 140.00 30.63 1.54 Apr-03 30-Jun-05 Energy Env & Population A. Zarzar 52577 Program LCSEO 160.0 91.8 68.20 22.46 0.00 Jul-03 30-Jun-05 208.2 294.2 3.43 Total Savings from Closed/Canceled Projects 502.4 Mauritania Tech Fosters 51328 Tradition LEG 184.5 115.0 69.50 7.59 0.00 Jul-02 30-Apr-05 24 D. POVERTY WINDOW 1. This progress report covers achievements of the Poverty Window of the Trust Fund for Environmentally and Socially Sustainable Development during the period October 2004-April 2005. It is divided into three sections. Part I provides a strategic overview of the Poverty Window. It summarizes progress under four thematic areas, Capacity building for poverty analysis and monitoring and evaluation; Poverty and Social Impact Analysis (PSIA); Developing and testing successful poverty alleviation programs, and Empowerment. It also discusses progress in terms of overall objectives, capacity building; knowledge dissemination; and impact on Bank policies/projects. Part II summarizes overall progress and implementation status of the window; and Part III looks at partnerships. An attachment provides detailed information about the progress of individual activities. II STRATEGIC OBJECTIVES: IMPACTS, KNOWLEDGE SHARING AND CAPACITY BUILDING 2. The Poverty Window has four strategic priorities: i) Capacity Building for Poverty Analysis, Monitoring, and Evaluation takes different forms: (a) In several countries, analytical work on the nature, causes, and distribution of poverty has been/is undertaken by local consultants and/or country counterparts, sometimes with the help of international consultants, and informs the development of PRSPs; (b) In other cases, participatory and quantitative mechanisms to monitor implementation of the poverty reduction strategy (or of projects) are set up or strengthened; c) Finally, service delivery tracking studies and one ex-post evaluation of the poverty impact of a project are being conducted. ii) Poverty and Social Impact Analysis Studies covers (a) Fiscal policy reforms; (b) Agricultural sector reforms (pricing and protection, marketing, processing, land reform) (c) Public service delivery in education and health; key areas where reforms have not benefited the poor in the past. Ongoing work aims to ensure that spending cuts do not cut services to the poor and that spending increases are targeted to those services that benefit the poor most; and (d) Industrial public enterprise restructuring. iii) Developing and testing successful poverty alleviation programs has been tried in a few cases, where the TF is financing innovative work to pilot new approaches to achieve the Millennium Development Goals. iv) Empowerment in terms of upstream action research activities to define and measure empowerment and downstream training and capacity building activities. 3. In terms of country focus, about half of the activities (or subcomponents thereof) are concentrated in a few countries, for instance, Ethiopia (three), Kenya (two), Tanzania (two), Thailand (two), Nepal (three), and Honduras (two). More than half of the activities are located in the Africa region, out of which two activities focus on East Africa. This focus has helped to assess the underlying causes of poverty from different angles, for example in Nepal poverty analysis and empowerment studies are used to explore the issue of social inclusion (TF054275 and TF053900). 4. Within the different thematic topics, emphasis has been put on three main objectives, capacity building, knowledge and dissemination and impact on Bank operations. 25 Impact 5. A number of grants have been linked to Bank operations and have affected their design. Studies financed under TF051323 (Poverty and Environmental Management) generated considerable interest, including a request from the state of West Bengal to apply lessons from the study to help them design better environmental sanitation and public health interventions. This coincided with the preparation of a World Bank health sector loan to this state, to which the study is making inputs. In Zambia, TF051799( PSIA of Rural Reforms in Zambia-closed) supported analysis, dissemination of findings, and in-country capacity building for PSIA. A rural household model was developed and has provided input to the Zambia Country Economic Memorandum (CEM), which in turn informs the Country Assistance Strategy. The findings of the PSIA funded under TF052965 (Groundnut Sector Liberalization in Senegal) were instrumental in enabling the Government to pass the measure for the elimination of the import tax as part of the Bank's PRSC. The findings have more generally been reflected in IMF and Bank documents. The PSIA study in Malawi, TF050422 (Poverty and Social Impact Analysis (PSIA): Malawi Country Case Study) improved the quality of the World Bank recommendations which now take into account some of the earlier objections raised by stakeholders. In Rwanda (TF052699: PSIA of Tea Factory Privatization in Rwanda), the objective of the activity is to conduct PSIA of the privatization of tea factories and the results of the survey have already influenced the decision to design a pricing mechanism for tea which would account for differences in quality. In addition, there has been increased awareness of stakeholders on the potential poverty and social impacts of reform. Among the more recent activities, expenditure tracking work in Lao PDR (TF053873) and Malawi (TF053883), and Citizen Report Cards in Bolivia (TF053918) are expected to improve policy design as a result of better information on service delivery. In LAO PDR, the bi-annual implementation of PETs has become a key monitoring condition for the PRSC (TF052837). In Nepal, a study on poverty and caste based social exclusion has made great strides in developing a methodology to track changes in levels of empowerment and social exclusion in CDD projects. It has been able to identify key factors affecting empowerment and social exclusion. For example, it was able to demonstrate the importance for donors to specify which women should be targeted in programs as high caste women are more likely to capture the benefits of local development activities (TF053900 MESI). Finally, intra-Bank collaboration on cross-sectoral issues has increased in the context of a number of activities in particular those that sponsor innovative approaches (e.g. TF052553 Survey Based Work Linking Poverty and Environment in Serbia & Montenegro and TF051323 Poverty and Environmental Management). Knowledge Sharing 6. Many of the grants in this window have funded innovative studies which have been disseminated widely allowing other development practitioners to benefit from those results. In the area of poverty analysis and poverty monitoring findings are usually disseminated through country workshops (TF51975; TF052651; TF052913; TF053883, TF053878) often with attendance of government officials, NGOs, academics, international partners and local stakeholders (parliament, labor unions). For instance, in TF051975, informing the in-country dialogue on the relationship between agriculture and poverty has been one of the objectives and three in country workshops have been very successful in this regard. They were well attended both by Bank and government staff and initiated lively policy debates of good substantive quality and useful feedback to the teams both in terms of content as well as process. In East Africa, the regional Poverty and Data analysis Initiative (PADI TF052913) has established a network and national chapters are guiding national ­level activities. A website was created and objectives of a recent workshop were to disseminate and discuss policy implications from ongoing analytical work on poverty in Kenya, and to identify priorities for future analytical work. Over 50 participants attended the workshop, including government officials, local researchers and academics, representatives of the donor community, and local journalists. Also the findings of TF053878 (Poverty Monitoring Systems) are in the process of wide dissemination. A workshop with 25 practitioners to test the synthesis and lessons was recently held. In addition, the final draft of the core lessons was presented in March 2005, to test the findings with a broader set of practitioners (country-based staff). Finally, a workshop is planned in London in May to allow a final review of the report. 26 Capacity Building 7. Most grants have funded work that is performed in close collaborations with governments and in- country institutions, including with Civil Society Organizations (CSOs). This is key for in-country capacity building. In TF051946 (PSIA in West and Central Africa), teams of local researchers in 6 West African countries are undertaking the PSIA analysis as part of the PRSP/PRSC process. A project in Zambia is working with two institutional partners on a poverty and vulnerability assessment for Zambia and is training counterparts in the statistical office (TF052651). In Malawi government officials and members of CSOs are trained in understanding of sources of vulnerability and the role of public policy, by carrying out joint technical analysis, including PETS. This is partly achieved by bringing government officials to Washington to join task teams (TF053883). PSIA work in Mongolia (TF052966) on the analysis of urban-rural linkages is prepared in close cooperation with technical working groups comprised of the statistical office, local researches and international partners. Similarly, a PSIA study in Tanzania, now closed, on agricultural taxation was carried out together with local researchers and international agencies to strengthen local capacity (TF051977). In Azerbaijan, staff of the Statistical Committee and the Ministry of economic development have been trained to use the software to visually present environmental and poverty information to decision makers to support policy decisions.(TF052652). Under the empowerment activities, TF050435 (Empowerment of Civil Society for Monitoring and Evaluation PRSP in LAC-now closed), the program strengthened the capacity of civil society actors ­ especially of the poor and excluded ­ to take an active role in their communities in monitoring and evaluation (M&E) of the implementation of Poverty Reduction Strategies (PRS). Consensus building and learning was achieved in Ethiopia through regional workshops and workshops in two cities between government/non-government and donor organizations. (TF051976). Other examples on local capacity building can be found below in the section describing the work with local institutions. II. PROGRESS AND IMPLEMENTATION Overview of activities 8. The Poverty sub-window, which was launched in November 2001, has funded 54 activities so far. Twenty seven of these are completed and 27 ongoing. Of these 54 activities, 20 were selected through a call for proposals held in FY02, specifically for the poverty sub-window (none are ongoing); 10 activities were selected in FY03 through two calls for proposals joint with the social and environmental windows (5 are ongoing); 12 through the FY04 call for proposals (10 are ongoing); and 12 were selected through the FY05 call. Of these activities, 41 are managed by regional staff and the rest by network/research staff. Table 1: TFESSD Poverty Window activities as of April 30, 2005 Call/year Activities Activities ongoing Closed activities Activities in Africa approved (ongoing) FY02 (poverty) 20 0 20 0 FY03 (joint) 10 5 5 4 FY04 (joint) 12 10 2 6 FY05 (joint) 12 12 0 4 Total 54 27 27 14 9. Most activities funded under the Poverty sub-window are progressing satisfactorily. As was the case at the time of the last report, activities are being undertaken and are feeding into the country dialogue and the development of Bank assistance. As the earlier activities (those launched in FY02) come to closure, we begin to see a strategic focus in four main areas and results, in terms not just of reports and studies being completed, but also in terms of in country dissemination and dialogue, capacity improvements and feedback into Bank programs. This is discussed in detail in Annex 1 Check of the report. 27 10. Closures. Over this period, three TFs were closed, and all of the FY02-approved activities have been completed. They are highlighted in Table 3. Table 3: TFESSD Poverty Window Activities that closed over the reporting period TF number Activity name Closing date Completion Report? TF050439 Poverty and Social Impact Analysis Guyana 12/31/2004 Yes TF051799 Poverty and Social Impact Analysis of Rural Reforms 12/31/2004 Yes TF051977 Tanzania: Poverty and Social Impact Analysis of Agricultural 12/31/2004 Yes Taxation Disbursement and Commitments 11. A review of the poverty window portfolio indicates improved disbursement ratios as projects are moving forward. Overall, 72 % of the funds received by the Poverty window have been disbursed2. 12. Table 2 summarizes the financial activity of the window. FY03-approved activities had used 80 % of the funds approved, and disbursements are expected to pick up in the next six months, as projects are being completed and remaining funds are used to finance dissemination and knowledge sharing. FY04 activities had used 87 % of the funds approved (up from 82% in November 2004). FY05 activities had used 75 % of the funds approved (up from 41% in the previous period). As of April 30, 2005, 62 % of funds have gone to activities in Africa. Table2: TFESSD Poverty Window Financial Data as of April 30, 2005 Sum of Sum of Sum of Cum Disbs Sum of Cash Sum of Sum of Cum Sum of FY05 Only +Comm Available Balance Sum of Year Receipts Disbs thru Comm (disbs+ (thru Balance Hold. Africa App (USD) FY04 USD comm) FY05) (USD) Curr. Amt FY03 $1,566,689 $834,597 $193,410 $423,575 $1,258,171 $308,518 $501,928 $583,396 FY04 $1,623,315 $768,978 $176,537 $650,276 $1,419,254 $204,061 $380,598 $953,601 FY05 $1,407,500 $0 $589,264 $1,052,610 $1,052,610 $354,890 $944,153 $817,379 PR03 $2,130,896 $2,036,720 $108 $94,148 $2,130,868 $28 $136 $1,250,704 Window $489,099 $0 $0 $0 $0 $489,099 $489,099 $0 reflows from parent $874,500 Grand Total $8,340,000 $3,711,065 $984,219 $2,248,592 $5,959,657 $1,505,842 $2,490,062 $3,703,834 2Includes commitments and disbursements. Taken as a percentage of total receipts which includes reflows from parent. 28 Actions and Recommendations 13. Five projects were granted extensions in this period. In those that requested extensions, the extra time was requested to build stronger ownership among government and key stakeholders and allow for sufficient time to complete the analysis. Extensions continue to be requested, and are granted wherever there is a good justification and work is progressing. We do not favor granting extensions beyond a year of the original closing date, but are implementing this "rule" flexibly to make sure that no opportunities are lost because of it, for example for final dissemination of results. The following projects were granted extensions: · TF051784, Measuring Empowerment from March 31, 2005 to September 30, 2005 (three months); · TF052651, Zambia poverty and vulnerability analysis: from March 31, 2005 to June 30, 2005 (three months); · TF052699, PSIA of Tea Factory Privatization in Rwanda December 31, 2004 to June 30, 2005 (six months); · TF052872, Thai Village Fund, from June 30, 2005 to December 31, 2005 (six months); · TF052873, Lao PDR Education and Health Service Delivery, from June 30, 2005 to December 31, 2005 (three months). As part of a semi-annual portfolio screening, undisbursed funds were reallocated to another project in need of additional financing, (TF052651). III. PARTNERSHIPS Overview. 14. Task Managers provided information on the institutional partnerships as part of the TFESSD- funded activities with four types of institutions: (i) Norwegian and Finnish, (ii) UN, (iii) Local, and (iv) Other. Almost all activities involve partnerships, but their nature, extent, and objectives vary considerably (see details in Appendix 3). Over half of all projects reported partnerships with local institutions. Many also reported working jointly with donors and UN agencies. 15. Partnerships with Local Institutions. Most Task Managers in the poverty window indicated that they worked or are working with local institutions. This is very important to foster country ownership, build capacity, and ensure that the results of technical work are available to key policy makers and other stakeholder. The type of institutions vary by project. In many countries, local consulting firms carry out key analytical tasks. For example, in TF0529665 (PSIA of Ground Nut Sector Privatization in Senegal) a Senegalese firm worked on survey of producers, in partnership with Ministry of Agriculture. In TF052651 (Zambia Poverty and Vulnerability Analysis) researchers from the University of Zambia undertook some of the key analytical pieces of the work. Their involvement helped to foster a greater dialogue on poverty issues in the country. The project also funded extensive consultations with NGOs including a recent two day workshop on the background papers which were produced. In TF053886 (Moving Out of Poverty), the TFESSD funds support a great number of local institutions in field research, analysis, report writing, and outreach (including support to media). 16. Partnerships with UN Agencies and other donors. There were three cases which reported collaboration with UN Agencies: · TF051975 (Revisiting the Role of Agriculture in Reducing Poverty in Africa) where there was work with FAO; TF052966 (Urban Poverty in Mongolia) which partnered with UNDP and ADB, · TF053883 (Malawi Food Vulnerability and Governance) with FAO. 29 · TF053883 partnered with Statistics Norway on the analytical work. Partnerships with the European Union , DFID, and GTZ also contributed to donor coordination and cross-agency knowledge sharing. 17. Other Partnerships. Other partnerships generally involve leading international research institutions Examples of research institutes involved are the IFPRI and AGULHAS. In one project TF053878 (Poverty Monitoring Systems), there was collaboration with Save the Children UK. In many cases, these partners had a particular expertise and had done substantial research on the topic. 18. Selection Methods. While abiding by WB procurement guidelines, which apply to the TFESSD, in most cases TMs selected partners on the basis of prior knowledge and experience, prior involvement in the same country or type of work, and/or a unique ability to carry out the task. In some cases, competitive bidding was conducted and TMs laid out the selection criteria. Detailed progress report on ongoing activities (i) Capacity Building for Poverty Analysis, Monitoring, and Evaluation a) In several countries, analytical work on the nature, causes, and distribution of poverty has been/is undertaken by local consultants and/or country counterparts, sometimes with the help of international consultants, and informs the development of PRSPs. TF051975 Revisiting the Role of Agriculture in Reducing Poverty in Africa-$260,000 In Sub-Saharan Africa, a study seeks to revisit the role of agriculture in reducing poverty in Sub- Saharan Africa through in depth analysis of four case study countries (Ethiopia, Kenya, Madagascar, and Tanzania). The concept note has been discussed within the Bank in November and was well received. Three out of four country workshops have been held (Tanzania, Kenya, Madagascar) while the Ethiopia workshop is now scheduled for early May (as part of government co-led workshop on rural development). The draft country reports are expected in late May followed by a draft synthesis report presented during a June workshop. TF052651 Zambia Poverty and Vulnerability Analysis-$264,000 The Poverty and Vulnerability Assessment (PVA) for Zambia seeks to update a 1994 assessment, capturing the nature and evolution of poverty in Zambia, along a social risk management framework reflective of MDGs and of elements of the current PRSP. Substantial progress has been made since the last reporting period and the work will be completed by end-June. Additional funds were added from the closed TFESSD supporting PSIA for Zambia, and the results of the smallholder analysis expanded and integrated into the PVA. Further analysis of the PRSP is also being integrated into the PVA: The urban participatory study has been finished and a draft report circulated for comments in Zambia. The poverty profile is finished, and additional training has been provided to the Central Statistics Office on poverty mapping techniques, which has helped to lay the analytic foundations. A series of consultations and dissemination workshops were held in Lusaka in February/March ­ with NGOs, academics, international partners, members of Parliament and labor organizations, as well Government. The final PVA report will provide important inputs for Zambia's next PRSP (just underway). The project is working with two local institutional partners. TF052913 East Africa Poverty and Data Initiative-$370,000 The project supports the Poverty and Data Analysis Initiative (PADI) in East Africa is progressing well. The regional PADI network has been established and national chapters are guiding national ­level activities. A website was created and WBI delivered a training event on linking budget to PRSPs and M&E systems, attended by government officials, NGOs and development agencies from East Africa. A Poverty Analysis and Data Initiative (PADI) workshop on "Understanding Poverty in Kenya," organized by the Kenya PADI chapter was held 30 on March 31, 2005. The objectives of the workshop were to disseminate and discuss policy implications from ongoing analytical work on poverty in Kenya and to identify priorities for future analytical work on poverty and data implications. Over 50 participants attended the workshop, including government officials, local researchers and academics, representatives of the donor community, and local journalists. A workshop is being planned for August 31 to September 2, 2005 focusing on impact evaluation of both anti-poverty projects and government policies TF053880 Integrating Social Dimensions into Poverty Analysis in Africa-$700,000 Another project aims at integrating social dimensions into poverty analysis in Africa. Apart from informing the policy dialogue at the country level, the work to be carried under this activity will serve as a key input into the broader Africa Region Poverty Reduction Strategy to be prepared by the Bank by the end of FY05. So far seven consultant reports have been produced in Uganda and the synthesis is underway. In Guinea the consultants have started work and TORs have been completed for Angola. During this period, staff of the Statistical Committee and the Ministry of Economic Development have been trained to use the software to visually present environmental and poverty information to decision makers to support policy decisions. TF053899 Reducing Poverty and Vulnerability of Pastoralists of East Africa-$100,000 The project supports four broad sets of activities in East Africa: (i) to deepen understanding of pastoral livelihood systems through cleaning and analysis of household-level panel; (ii) to strengthening linkages between stakeholders; (iii) to share information among stakeholders from Tanzania, Kenya, and Ethiopia through a major policy conference bringing together experts on a broad range of pastoral issues; and (iv) to disseminate findings through publication of a volume that synthesizes the latest knowledge on the livelihood issues facing pastoralists and possible strategies. The project has been progressing well. The data set is being cleaned and gaps have been filled. A data set is being produced to be readily used by researchers to shed light on questions such as the effectiveness of pastoralists' mechanisms for coping with shocks, the impact on livelihood systems of food aid, and the effectiveness of interventions such as restocking for permanently pulling households out of poverty. Collaboration among the international livestock research institute, the world food program, Cornell and Syracuse University, and the ASAL project team has helped provide clear direction for creating a useful database, given available resources for cleaning the data. Also the field liaison officer is now working. his visits to villages in Kenya, Uganda, Ethiopia, and Tanzania are having their desired effect of strengthening linkages between policy makers, researchers, development practitioners, and communities. They are also helping to disseminate findings to a larger audience. In other cases, participatory and quantitative mechanisms to monitoring implementation of the poverty reduction strategy (or of projects) are set up or strengthened. TF052871 Poverty Reduction in Post-Conflict Ivory Coast-$150,000 In Ivory Coast the objective is to help conduct analytical and survey work to inform the Cote D'Ivoire PRSP team about the impact of the crisis and what needs to be done to reduce poverty. Analytical work using existing survey data has been conducted, but the data collection work is delayed because of the political situation. The task is still on hold as consultants can still not travel to the country. The task has been reduced to a smaller scale trying to implement the surveys only in the southern part of the country. If the PRSP unit will not come forward with an implementable plan by June 2005 the Project will be closed. TF052553 Survey Based Work Linking Poverty and Environment in Serbia & Montenegro -$60,000 31 In Serbia and Montenegro, the project supports a household survey as part of the process of Monitoring and Evaluation of the PRSP. Based on the data the research team (ISSP-CEED) prepared a monitoring report on the evolution of poverty in Montenegro for the PRSP progress report. The local expert started to work on the paper linking poverty with the environment based on this survey data. This work is supported by the Poverty assessment program and the Policy and Economics Team in the Environmental Department of the World Bank. There has been an increasing support from Bank and other donors to the environment and poverty work and increased cooperation between ISSP-CEED and project teams. That has created a very practical angle in the approaches to data collection and helps to develop recommendations on designing policy actions for the environment and poverty reduction strategy. TF052872 Thailand Village Fund Evaluation-$80,000 In Thailand, the National Economic and Social Development Board (NESDB) of Thailand approved the Village Fund Evaluation in February 2004, which involves creating a panel of 8,000 households. The Village Fund Evaluation data collection is now completed and the data will be entered by May 2005 as planned. The government reconfirmed its commitment to village funds as part of the first track of its dual track development model, which focuses on the support for domestic demand and local enterprises. The report will start to be drafted in late May. To leave sufficient time for dissemination and a three month extension was granted. TF052966 Urban Poverty in Mongolia-$140,000 In Mongolia, the project seeks to understand better urban-rural linkages and the living conditions and challenges of recent migrants to Ulan Batur. Following initial delays in starting the project, recently progress has been made in securing partnerships with other donors (including with UNDP and ADB) to scale up the effort and complement the participatory assessment in the capital city with findings from other big cities and rural areas. After initial delays the work is now proceeding as planned. A workshop was launched in November together with the ADB and National Statistical office. The analysis of LSMS data on urban areas, rural urban differences and data for ger areas (UNDP survey) took place in January/February and preliminary findings were discussed with technical working groups. Additional field work s planned for April-June and the report is expected to be finalized and disseminated from July to September. TF053878 Poverty Monitoring Systems -$185,000 A multi-country study, jointly funded by DFID and Bank Budget, aims at developing practical guidance tools and country examples for the design and implementation of PRS monitoring systems. It is proceeding on schedule and initial outputs are promising: The first phase-14 country studies presenting existing institutional arrangements for PRS monitoring systems-is completed, one study had to be dropped due to unexpected political events. The second phase - drawing lessons and developing methodological tools - is proceeding as planned and work has started on the in depth notes. The final consultation and dissemination phase has recently started with a workshop of 25 practitioners to "test" the synthesis and lessons. The final draft of the core lessons is going to be presented during PREM week in Washington DC in April to test the findings with country based staff. Preliminary findings are already being used by a few colleagues in their country work and in the context of PRS reviews. They will also feed into the forthcoming results management handbook. TF054275 Conflict, Social Inclusion, and Poverty in Nepal-$75,000 In Nepal, a trust fund develops a knowledge base and local capacity for poverty analysis in line with the gaps identified in the Joint Staff Assessment (JSA) paper of the His Majesty Government of Nepal PRSP. The project has 4 components: (i) Identifying the causes of poor income opportunities in lagging regions and proposing strategies for improving them;(ii) Analyzing trends and determinants of maternal and child health and developing strategies for improvements through integrated approaches and better public service delivery through innovative community-based mechanisms and public-private partnership;(iii) Analyzing gender, caste, and ethnicity based stratification, focusing on constraints to employment opportunities, issues of discrimination in returns to labor and other assets, as well as issues of 32 discrimination in access to targeted programs and proposing remedial strategies; and (iv) Conducting a dissemination workshops to disseminate the results of these studies and other studies prepared in the context of the Poverty Assessment report. Project activities are on track with all 3 studies having been completed in the early first drafts. These first drafts emphasize the diagnostic of the problems and will be discussed with the relevant stakeholders in Nepal at the upcoming workshop (planned for mid May 2005). c) Finally, service delivery tracking studies and one ex-post evaluation of the poverty impact of a project have been conducted. TF052873 Lao PDR Education and Health Service Delivery-$140,000 In Lao PDR, there has been good progress in implementing an activity aimed at improving education and health service delivery. The Lao government confirmed its approval in conducting a public expenditure tracking survey (PETS) in Health and Education. Progress has been satisfactory. The rapid assessment reports on education and health have been completed, in addition to the draft questionnaires. A PETS steering committee meeting was held on January 26, 2005. The rapid assessment reports and the sample design were approved at the technical level. NSC will be in charge of the PETS field work and data processing. The next steps are as follows: government approval of questionnaires by end April; pilot testing in May; training in September; field work in October; and finalization of the report by end January 2006. The importance of the Lao PETS was reinforced by the World Bank board approval of the Nam Theun II Hydropower project and the Poverty Reduction Strategy Credit. The hydropower project will generate substantial revenues for the government from 2009 onwards. This heightens the importance on improving the efficiency of government spending in the social sectors for future poverty reduction. The PRSC includes as one key monitoring condition the bi-annual implementation of a PETS. TF053883 Malawi Food Vulnerability and Governance-$155,000 In Malawi, the objective is to reduce poverty and household vulnerability to extreme food shocks, by increasing transparency and accountability in management of food policy and public expenditures in agriculture, and adopting a sound policy framework. This will be achieved by increasing the Government's and other stakeholders' (Parliament, CSOs, donors) understanding of sources of vulnerability and the role of public policy, by carrying out joint technical analysis, including PETS. A draft paper on the tobacco sector marketing and institutional arrangements has been prepared and has been discussed at a seminar with industry stakeholders in Malawi in April 2005. Three officials from the Government, selected during the World Bank "Advanced Poverty Analysis Training" held in Zomba, Malawi, will come to Washington DC to work on the analysis of the new household survey (IHS-2) data. The work on the PETS has not yet started and is now set to start in June 2005. TF053918 Good Governance for Poverty Reduction Strategies-$170,000 In three PRSP countries, Bolivia, Nicaragua, and Honduras, a project helps to promote inclusive governance through the implementation of social accountability mechanisms in the context of Bank operations, capacity building, and knowledge sharing. The change of task manager and social unrest in Bolivia has led to some delays in implementation. But significant progress has been made in the development of citizen report cards in Bolivia and they are expected to be completed in June 2005. A similar approach is being explored for Honduras and Nicaragua. A civil society counterpart in Honduras still needs to be identified. In addition a training workshop for civil society is being prepared on "Voice and Accountability in Transfer programs in LAC". It will bring together 70 participants, representing CSO, government, congress fro PRSP and other countries that have developed national poverty reduction strategies (Brazil, Mexico, Peru) and IFIs. TF053879 Impact Evaluation of Tanzania Social Action Fund 1-$430,000 A Tanzania project supports impact evaluation of the Tanzanian Social Action Fund (TASAF) I. This will provide baseline evaluation which can be used in the design and implementation of TASAF II. It also will build the capacity of the project teams to undertake the same activities at the end of TASAF II. 33 So far the design has been completed, consultant selected and TORs drafted, although there has been a delay in TOR1. The first output is expected in June. TF053905 Madagascar - Service Delivery, Governance, and Local Accountability Monitoring Program-$150,000 In Madagascar the main objective of the trust fund is to strengthen local institutional accountability by providing national and local decision makers with information and analysis on service delivery and governance issues. A commune survey for 300 communes has been conducted and questionnaires and data are now available. In addition first drafts of the briefs on prices and welfare dynamics, education and health have been produced and discussed within the country team, and with key government counterparts. While the paper on insecurity is still pending, a concept note for the participatory monitoring has been produced. The main activity for the next six months will be the finalization of the methodology for the participatory monitoring survey, and the implementation of the agreed methodology before the onset of the rainy season late in the year. (ii)Poverty and Social Impact Analysis Studies The studies funded by the TFESSD look at reforms in five sectors: fiscal policy; agriculture and rural development; provision of education and health services; and industrial public enterprise restructuring. Work on reforms in these sectors is summarized briefly below. (a) Fiscal policy reform: TF054265 ­ Northeast of Thailand Sustainable Development-$80,000 An activity in Thailand promotes more efficient regional public resource allocation and environmentally sustainable local economic development. The project will evaluate the regional incidence of public spending, concentrating on poverty and social sectors, in addition to agriculture and infrastructure. Second, it will support capacity building and training activities in Northeast provinces to cost, monitor and evaluate province cluster strategies. Progress so far has been satisfactory. Both governance and environment components are proceeding well. The public expenditure analysis is well advanced. On January 31, 2005, the Northeast public expenditure report was presented in Khon Kaen in a workshop with around 20 government officials and local stakeholders. The environment study was commissioned and a draft report was submitted. (b) Agricultural sector reforms (pricing and protection, marketing, processing, land reform) TF051799 PSIA of Rural Reforms in Zambia (closed)-$183,500 In Zambia, where rural development policies are central to poverty reduction given that the majority of the poor live in rural areas, three actions were selected for PSIA: land reform/ titling; removal/ reduction of fertilizer subsidy; and delivery of rural infrastructure. The TF funded analysis, dissemination of findings, and in-country capacity building for PSIA. The study has achieved its objectives by providing input to the Zambia Country Economic Memorandum (CEM), which in turn informs the Country Assistance Strategy. The CEM was completed as planned, with the PSIA findings incorporated. Also, the analysis and findings of the PSIA were discussed with the government, farmers groups, and NGOs, thus contributing to awareness raising and capacity building. However, it is too early to know the impact of the findings on government policy making. TF051977 Tanzania Poverty and Social Impact Analysis of Agricultural Taxation(closed)-$184,600 A study in Tanzania (now closed) looked at the intended and unintended consequences of reforms in the functioning of the cotton and coffee boards. The PSIA reviewed (i) the source and use of funds of the Boards; (ii) existing institutional environment and arrangements governing production, processing and marketing of coffee, cotton, cashew and tea; and (iii) the expected impacts of reform options on the industries per se, smallholder farmers, and the boards. The study identified crop-specific reform options 34 on appropriate regulatory and service functions for the cotton, coffee, cashew and tea boards, and facilitated policy dialogue on reform alternatives among the various stakeholders through a coffee and cotton stakeholder workshop. The PSIA was carried out as a joint Government-World Bank-EU study by a multi-disciplinary team of Bank staff, and local university lecturers to build in-country capacity. The team collaborated closely with representatives of the Ministry of Agriculture and Food Security, Ministry of Cooperatives and Marketing, the EU, as well as the crop boards, private sector, and civil society. The study compiled primary and secondary data through a mixed-method approach with key-informant interview and focus groups to generate the hypotheses for the subsequent household survey, and in-depth desk review of crop-specific literature. The PSIA conducted Stakeholder, Institutional, and Social Impact Analyses for its institutional mapping of all four crops, and a Benefit Incidence Analysis for the coffee and cotton sectors. Proposed reform options include publicly financed coffee and cashew boards with redefined mandates to focus on public services, a privately financed tea board with redefined mandates to focus on associated and jointly provide private services, and a joint public-privately financed cotton board with the provision of associated private services and contracting for public services. TF052699 Poverty and Social Impact Analysis of Tea Reforms in Rwanda-$145,000 In Rwanda, the objective of the activity is to conduct PSIA of the privatization of tea factories. The quantitative survey has been completed and the statistical office is now hiring consultants who will assist the data analysis. The results of the survey have already influenced the decision to design a pricing mechanism for tea which would account for differences in quality. In addition, there has been increased awareness of stakeholders on the potential poverty and social impacts of reform. The PSIA has provided opportunities for coordination across a variety of Ministries, the Private Sector Federation, organization of tea growers, and the tea marketing board. Activities are generally proceeding according to schedule. TF052965 Groundnut Sector Liberalization in Senegal-$120,000 In Senegal, the project supports PSIA of groundnut sector liberalization. Good progress has been made and three preliminary outputs are now finalized: two background papers (institutional analysis and CGE simulations) plus a new survey of groundnut producers including detailed modules on perceptions of privatization. The survey was used to prepare a short note in December 2004 for Senegal's President Wade on the likely impact of the elimination of vegetable oil import duties on poverty, distinguishing between impacts on producers and impact on (groundnut) producers. The note was instrumental in enabling the Government to pass the measure for the elimination of the import tax, which was required for the Bank's PRSC and the IMF's PRGF. The findings have more generally been reflected in IMF and Bank documents and the report is currently being finalized. TF053904 Social and Poverty Impacts of Land Consolidation Policies in Vietnam-$120,000 The Vietnam project will support Government in formulating appropriate land policies taking into account their potential social and poverty impacts. The study will take stock on existing experiences and examine impacts of Government's land consolidation policies on equity, gender considerations, poverty, growth and vulnerability. It will identify the potential winners and losers and will suggest possibilities to smooth the process and mitigate negative impacts. A quantitative survey was conducted in January/February 2005 and an initial quantitative analysis was conducted to explore the impact of land fragmentation on farmers' productivity and living standards. (c) Public service delivery in education and health and other sectors is a key area where reforms have not benefited the poor in the past. Ongoing work aims to ensure that spending cuts do not cut services to the poor and that spending increases are targeted to those services that benefit the poor most. TF051946 PSIA in Central and West Africa-$248,000 A study on six West African countries is assessing who benefits from public services in the areas of education, health, and basic infrastructure and the impact of tax reform based on household survey data. The objective of the project is to work with teams of local researchers in West African countries in order to contribute to the PRSP/PRSC process by assessing who benefits from select public services; selecting 35 one or two topics for PSIA type of work; and organizing dissemination events in each of the countries at the end of the work. Over the last months in depth work on import taxes (Senegal),VAT (Cape Verde, Niger, Cameroon) was carried out. Overall the studies, (some of the work above was also carried with local researchers) will allow a good overview of some of the VAT issues from these case studies. A major dissemination event in Ouagadougou is planned for June 2005, in partnership with sub-regional organizations (UEMOA and CEDEAO). The event is expected to bring together PRSP representatives from about 15 countries, local researchers, and other interested parties, especially from sub-regional organizations. The workshop will also give opportunity to discuss the possibility of creating a West/Central Africa Research network in support of PRSP analysis, poverty work and PSIAs. (d) Industrial public enterprise restructuring: TF050439 PSIA Guyana(closed)-$122,000 In Guyana, a full report analyzing the impact of the reform in the bauxite sector was completed and submitted to the government in February 2004. Two more reports on the baseline quantitative survey of households dependent on the sugar industry and the impact of the reform in the sugar sector based on qualitative methods, both of good quality, were consolidated in a final report. The trust fund has also supported technical guidance to the Government as it created the new monitoring and evaluation unit for the PRSP and began to elaborate a work program. It has build capacity by working with local consultants and through generating primary data. The trust fund has been critical in allowing Bank staff to better understand the complementarities between qualitative and quantitative surveys for impact analysis at the household level. (iii) Developing and Testing Successful Poverty Alleviation Programs In a couple of cases, the TF is financing innovative work to pilot new approaches to achieve the Millennium Development Goals. TF051323 Poverty and Environmental Management in India-$380,000 In India, another study is looking at pilot approaches to improve environmental management (drainage, waste management and water management) to better control malaria and gastro-intestinal diseases. The project is being conducted in partnership with the Institute for Social and Economic Change in Bangalore, India. The series of ISEC studies on Bangalore is now being prepared for publication and web dissemination. In addition, short summaries on specific topics will be published in forums regularly accessed by policy-makers. The workshops held to disseminate the findings of these studies have generated considerable interest, including a request from the state of West Bengal to apply lessons from our study to help them design better environmental sanitation and public health interventions. This coincides with the preparation of a World Bank health sector loan to this state, to which our study is making inputs. Lessons from the country case studies are being extensively used to inform the above activities in the states of Karnataka and West Bengal. Further derivation of lessons from Malaysia is under way, as this is the only Asian country with successful environmental sanitation and health outcomes, which is similar to India in the administrative and political structures which frame service delivery. The project is being conducted in partnership with two local institutional partners. TF052652 Azerbaijan Poverty-Environment Mapping-$136,000 In Azerbaijan, a project aims at (i) identifying spatial distribution of poverty and forest resources in Azerbaijan at the economic zone level; (ii) identifying geographical areas with strong links between deforestation and poverty; and (iii) building capacity of local researchers to mainstream poverty and environmental issues in analysis of sectoral reforms. During the previous periods the poverty mapping work was finalized and regionally disaggregated poverty maps were produced, a simple deforestation model was developed; and results were summarized in a final report. As a result, spatial distribution of poverty and forest resources in Azerbaijan at the economic zone level; and geographical areas identified with strong links between deforestation and poverty have been identified. During this period staff of the 36 Statistical Committee and the Ministry of economic development have been trained to use the software to visually present environmental and poverty information to decision makers to support policy decisions. More dissemination activities are planned in a country wide dissemination workshop and a training course with staff from the PRS secretariat. (iv)Empowerment A number of TFs focus on empowerment in terms of upstream action research activities to define and measure empowerment and others on downstream training and capacity building activities. TF051784 Measuring Empowerment-$315,000 A large multi-country study that involves teams in Peru, Indonesia, Ethiopia and Honduras (the latter replaced Bolivia because of social and political instability) aims at developing a consistent framework to measure empowerment and assess its contribution to development outcomes. The specific objectives are: to begin assessing the effect of investment in empowerment on both empowerment outcomes and development; and to develop indicators and instruments which can be used for tracking and evaluating these investments and their outcomes. Three of the five countries have sent in their final drafts. Data collection in Ethiopia and Nepal was delayed and a consultant has been hired to give support to data processing by the Ethiopia team. Due to the delays, the draft report is expected to be submitted by end May after which a four month period for review for printing and publishing is needed. The closing date has been moved by six month to September 2005. An interim research paper was published in February 2005. TF051976 Empowering Civil Society in Ethiopia-$295,000 In Ethiopia, work is ongoing to support the development of a Bank project to build the capacity of civil society actors to monitor the poverty reduction strategy through stocktaking and learning activities. Two major studies on citizen's empowerment and associational life are in the final stages of field work. Consensus and learning has been achieved on how to empower citizen's institutions/organizations through Government/Non Government/Donor Stakeholder consultations. Four consultations have taken place involving all the regions and two cities. A number of studies have been completed by now including Community Driven Approach to Development in Ethiopia, Review of the Enabling Environment for Civic Engagement, Overview of Decentralization and Status of Civic Engagement, Gender and Youth Analysis, and Project Design Study have been completed and final reports were received. A study on Review of CSOs organizational capacity has been started and is expected to be finalized by the end of May, 2005.A Civil Society Empowerment web site has been created under World Bank/ Ethiopia web site. The reports of the background studies were posted on the web. () TF053886 Moving out of poverty-$425,000 The Second Moving out of Poverty financed under TFESSD is progressing well: (i) the conceptual framework and methodology for the study have been finalized; (ii) partnerships have been established with the Government of Uganda, and several institutes and universities for Ethiopia (Oxford University, International Food Policy Institute; University of Addis Ababa; ; (iii) specialists are being identifies to lead country studies and train local researchers and; (iv) specialists are engaged in finalizing the data collection instruments. A training workshop for lead researchers from participating African countries will be held in January 2005. The scope of funding has been broadened from three to five studies, which will receive partial funding, Malawi, Uganda, Rwanda, Senegal and Tanzania. Training workshop was held in January in conjunction with the annual meetings of the GDN to train lead researchers. A capacity building workshop followed where researches and Banks staff discussed specific country proposals and provided country research teams with feedback and the design of the global study. A large number of partnerships were established with local research institutes. 37 TF053900 Nepal: Empowerment and Social Inclusion-$220,000 In Nepal, the first phase of the Measuring Empowerment and Social Inclusion (MESI) study for Nepal has successfully developed a multi-disciplinary methodology for measurement of two important but difficult to assess dimensions of pro-poor development, empowerment, and social inclusion. A project launch workshop took place in January which raised interest in the study in the Bank and with civil society in Nepal. So far the study has prepared and presented a paper on Poverty and Caste based social exclusion in Nepal and disseminated findings in numerous presentations. It has made great strides in developing a methodology to track changes in levels of empowerment and social exclusion in CDD projects. It has been able to identify key factors affecting empowerment and social exclusion and was able to demonstrate that it is important for donors to specify which women should be targeted in programs as high caste women are more likely to capture the benefits of local development activities. As the project is still using GENFUND resources, disbursements are not expected before FY 06. Buy in from donors, civil society has been beyond expectations. The main risk remains political instability due to maoist insurgency. E. SOCIAL PROTECTION WINDOW 1. This section of the progress report covers achievements of the TFESSD Social Protection (SP) Window during the period November 2004 ­ April 2005. It is divided into three sections: Part I provides a strategic overview of the SD window, including impacts of the TFESSD, work on knowledge sharing, and capacity building; Part II summarizes overall progress and implementation status of the window; and Part III looks at partnerships. 2. The SP Window was launched in March, 2004 with an independent call for Proposals; for purposes of the first Call, priority was given to activities that: Increase the understanding and knowledge of the extent and impact of the vulnerabilities of children, youth, and disabled persons on human development, poverty reduction, and social inclusion; Improve the understanding and knowledge of effective public action on how to redress these vulnerabilities Build stakeholder capacity for macro-level, multi-sectoral, and sectoral analytical work and for micro-level impact analysis related to children, youth, and disabled persons. 3. The SP Window currently has 10 ongoing activities, all approved in FY05. None of these have closed as yet and most activities are progressing well. I. STRATEGIC OBJECTIVES: IMPACTS, KNOWLEDGE SHARING, AND CAPACITY BUILDING Impacts. SP Window projects were initiated in August/September, 2004 and none of these projects are scheduled for completion before June 30th, 2005. It is too early to assess project impact. However, several projects show early signs of potentially high impact and all projects are fully integrated into the Bank's country assistance programs. For example, the TFESSD-financed work on risk and vulnerability in Rwanda (TF053971) has been carried out through close collaboration with Rwandan authorities as well as other stakeholders. The Rwandan government already is using the early findings to shape its Social Protection strategy and generate internal debate on spending priorities. Knowledge Sharing. All of the projects have planned or ongoing knowledge-sharing activities and one of them ­ the OVC Toolkit (TF053967) ­ has knowledge sharing and capacity building as its primary objectives. Under this project, TFESSD provided supplementary support to field test the OVC tool kit and facilitate capacity building and dissemination activities in Africa. The toolkit includes an extensive library of relevant literature and experiences from countries across the African subcontinent. The toolkit 38 already is being used in several countries. The project on youth and labor markets in Africa (TF054203) also has a number of consultations and dissemination workshops in the offing. Extensive consultations also have taken place under the aegis of the disability and PRSP work for Senegal (TF053966), and the Open Society of West Africa (Soros Foundation) provided supplementary support for these efforts. One lesson learned from the first round of proposals financed under the SP Window is to ensure that adequate funding is provided to all projects, including consultations and knowledge sharing activities, as well as for capacity building. These kinds of activities are more likely to squeezed when budgets come under stress, moreover they typically come at the end of a project when funds are more likely to be exhausted. The SP Window encouraged all new applicants under the FY05 Call for Proposals to develop a solid, adequately financed plan for knowledge-sharing and dissemination as a part of the proposal. Capacity Building. Strengthening the capacity of country counterparts, including civil society organizations, to monitor and improve development outcomes is an ongoing focus for activities funded under the SP Window. Several activities have an explicit focus on enhancing the policy making and implementation capacity of governments and other stakeholders e.g. the Rwanda risk and vulnerability study (TF053971), the Senegal initiative to integrate disability concerns in the PRSP (TF053966), and similar work planned for Turkey and Armenia. (TF053964). II. PROGRESS AND IMPLEMENTATION Progress Toward Agreed Objectives. Most of the activities funded under the SP Window are making good progress. (Table 1) By April 30th, SP window trust fund managers had committed or disbursed 37 % of the total TFESSD funds allocated ($408,000) and anticipate substantial spending between now and the end of FY05. By June 30th, we anticipate that 65 % of FY05 allocations will be committed or disbursed, slightly less than our estimate of 78 % at the beginning of the year, but nonetheless adequate progress. Eight out 10 SP Window activities are specifically targeted focusing on Africa, and one out of the two other activities ("Support to Mainstreaming Disability") covers work in Africa as well as other regions. An estimated 55 % of FY05 SP Window allocations will go to support work in Africa. Administrative Arrangements: Extensions, Closings, Adjustments in Scope Closings and Extensions. Nine out of ten SP Window activities were initially planned to close by June 30, 2005 (end-FY05). The Window Manager consulted with all task team leaders to ensure that projected closing dates are still valid. Four projects will close on schedule, and the remaining five have requested extensions. Rwanda Social Protection Strategy (TF053971) ­ 3 month extension. Reasons provided in the activity report i.e. slow progress on the part of Rwandan counterparts, competing work priorities, and lack of TFESSD funds in August, 2004. Youth in Africa: Poverty and Labor Market Activities (TF054203) ­ 6 month extension. Reasons provided in the activity report. AFR regional concept review refocused work on four case study countries, with more in-depth analysis and interaction with governments and World Bank country teams. (change in scope discussed below) Benin - Protection of Vulnerable Children with Specific Emphasis on HIV/AIDS (TF054191) ­ 3 month extension. Limited discussion in the activity report. Literature review completed, looking for appropriate consultants. This is an important study, led by the Bank's Legal Department, that aims to assess legal policy instruments for protecting the rights of vulnerable children in Africa, particularly HIV/AIDS orphans. However, slow progress is a concern and the SP Window manager will monitor progress closely over the next 3-4 months. Disability Among Children and Poverty in Cote d'Ivoire (TF054118) ­ 3 month extension. Reasons provided in the activity report i.e. some delays due to continuing conflict in the country. (change in scope discussed below) 39 Disability in Turkey and Armenia (TF053964) ­ 1 year extension. Reasons provided in the activity report i.e. illness of key staff, higher costs than anticipated to do the work in Armenia (negotiating with firm), also government in Turkey has reversed their initial decision to participate in the study. The task team leader proposes to replace Turkey with Uzbekistan, and to adjust scope of work to reflect weak information on disability. (change in scope discussed below) Adjustments in Scope. Task team leaders for three activities have proposed adjustments in scope and timing of outputs. After discussion with the relevant TTLS, the SP Window manager has agreed to the changes. Youth in Africa: Poverty and Labor Market Activities (TF054203) The initial proposal planned comparative work in a number of countries in sub-Saharan Africa. During the concept review meeting, regional management requested that the activity focus on a narrower set of countries in order to go into youth employment and transition activities in greater depth, also to allow time for the study team to work with country teams and better inform the country dialogue and lending activities. The adjustment will ensure that the study has greater operational impact and country- level relevance. This seems a very positive outcome. Disability Among Children and Poverty in Cote d'Ivoire (TF054118) The conflict in Cote d'Ivoire has continued longer than expected, and some regions are not safe for field work. In light of this, the task team leader proposes to reduce the geographic coverage of the study to focus primarily on (safer) southern areas of the country. He also has improved the survey instrument and sample design to ensure adequate information is collected on disabilities. Again, the changes seem appropriate. Disability in Turkey and Armenia (TF053964) The task team leader proposes to replace Turkey with Uzbekistan, where there is strong interest on the part of Government counterparts and other stakeholders, but data quality is very poor. Instead of developing an SP/disability strategy, the TTL proposes to help Uzbekistan collect better information on disability, also to improve their system for monitoring disability and relevant programs. Work on the strategy could commence after the data base is improved III. PARTNERSHIPS Many SP Window activities involve partnerships with other institutions, either by forging new links and building new partnerships at the country level or by integrating into existing partnerships. The grant amounts thus far have been fairly small, and the latter is by far the most common. Based on recent progress reports and discussions with task team leaders, there are several projects that are working with local institutions and civil society organizations and several others being coordinated through HIP (Harmonization in Practice) and PRSP processes in a specific country. Bilateral agencies active in the country as well as UN Agencies are typically a part of the HIP. Thus far, none of the FY04 SP Window activities have pursued partnerships with Norwegian or Finnish organizations. 40 Table 1: SP Window TFESSD Activities Status as of April 30, 2005 Disburse + Original Current Commit Original Current Indicative Indicative as of Trust Task Team Closing Closing Funding Funding April Avail Activity FY Fund No. Leader Date Date (US$000) (US$000) 30, 2005 Balance Rwanda - 05 TF053971 M. Prywes 06/30/2005 09/30/2005 Social Protection Strategy 60.0 60.0 17.6 42.4 Orphans & 05 TF053967 Maurizia 06/30/2005 06/30/2005 Vulnerable Tovo Children Toolkit Testing 75.0 75.0 65.8 9.2 Discrimination 05 TF054110 Maurizia 06/30/2005 06/30/2005 of Orphans in Tovo Benin 25.0 25.0 24.6 0.4 Youth in 05 TF054203 M. Garcia 06/30/2005 12/30/2005 Africa: Poverty and Labor Market Opportunities 100.0 100.0 43.2 56.8 Orphanhood 05 TF053965 K. Beegle 06/30/2005 06/30/2005 and Living Arrangements in Tanzania 69.5 69.5 63.7 5.8 Senegal - 05 TF053966 J. Van 06/30/2005 06/30/2005 Support for the Domelen Disabled within PRSP 20.0 20.0 19.9 0.1 Benin - 05 TF054191 H. van 06/30/2005 09/30/2005 Protection of Tilburg Vulnerable Children with Specific Emphasis on HIV/AIDS 70.0 70.0 0.0 70.0 Disability 05 TF054118 Quentin 06/30/2005 09/30/2006 Among Wodon Children and Poverty in Cote d'Ivoire 75.0 75.0 28.1 46.9 Disability in 05 TF053964 J. 06/30/2005 06/30/2006 Turkey and Braithwaite Armenia 80.0 80.0 0.0 80.0 Support to 05 TF053963 J. 06/30/2006 06/30/2006 Mainstreaming Heumann of Disability at the WB 417.0 417.0 145.2 271.8 TOTALS 991.5 991.5 408.1 583.4 41 3. ADMINISTRATION AND GOVERNANCE A. FY06 CALL FOR PROPOSALS The Call for Proposals in March 2005 was the first joint call to include the new Social Protection Window. The SDV-ENV-POV-SP Call for Proposals was sent out on March 8, 2005 to the Environment, Social Development, Poverty, and Social Protection sector families in the Bank. It was also posted on the Bank's internal website as well as on the TFESSD external website. The deadline for submission was March 31, 2005. As agreed during the December 2004 Semi-Annual Consultation meeting, types of activities were prioritized in this call, but themes were not. The text of the Call for Proposals was discussed within the Bank, including with the relevant Sector Boards, and agreed with the donors. Proposals covering the following activities were to be considered for funding: · upstream analytical work on poverty, vulnerability, environment and social issues linked to the preparation and implementation of CASs, PRSPs, and/or development policy lending with a focus on likely impacts of policies · downstream activities to monitor and /or evaluate poverty, vulnerability, social, and environmental impacts of Bank supported policies; or governance, social development, environmental sustainability and other innovative aspects of projects and programs In the appendix to the Call, the Sector Boards for Environment and Social Protection suggested thematic priorities within the scope of the priority topics above. Because they were meant to inform applicants of Sector Board priorities without prejudicing applicants, these thematic priorities, were not weighted by the technical reviewers who evaluated proposals. The thematic priorities were: Priority areas from the Environment Sector Board: a) Methodology and Tool development b) Poverty-Environment Linkages c) Environment in PRSPs and CASs d) Environment in Sectoral Planning and Programs e) Environment and Governance (comprising policy/institutional frameworks and performance, and linkages to fiscal issues, e.g., decentralization, environmental expenditure management) Priority areas from the Social Protection Sector Board: a) Evaluation of SP programs and policies, with particular focus on evaluating the effectiveness of measures designed to support ex ante risk management. Applicants are encouraged to submit proposals that have cross-country or regional coverage, and focus on thematic evaluations rather than evaluations of single projects. b) Identifying links between risk and economic growth, with particular focus on ex-ante risk management instruments (SP and non-SP) c) Labor markets, vulnerability and the working poor d) Vulnerability of the elderly, effectiveness of measures to protect of the elderly 42 Eighty-seven proposals were received (compared to 141 in 2004). Each of the strategic packages from the Africa pilot was counted as one proposal (whereas the defined activities in the pilot packages totaled 16 different activities). The relatively fewer proposals this year might be due to shorter turnaround time (three weeks compared to four last year), the timing of the call during ESSD week and larger and integrated proposals. Next year the Call will not take place during ESSD week. Further the TTLs should have at least four weeks to prepare their proposals. Forty-two proposals were recommended for approval by the donors with a projected spending of about $6.7 million for FY06 funding. 52.3% is allocated to Africa. Forty-one proposals were recommended rejected. Four proposals were merged into approved proposals. The average project funding for FY06 is $166.000. The list of all proposals (appendix 6), with copies of all the proposals, was forwarded to the donors on May 28, 2005. A more detailed report on the review and selection process is presented below. Increased Transparency The procedures for funding activities under the TF should be transparent to all. Funding should be based on sound procedures, clear objectives and merits of the applications to the trust fund. In order to increase the transparency of evaluation of proposals, this year's Call included the evaluation criteria and their relative weights. Applicants were made aware that each proposal would be rated between "0" and "3" (i.e., "no fit" and "very good") against a set of five criteria: Criteria 1: Strategic fit with the Priorities of the Call for Proposals (35%) Criteria 2: Fit with Thematic and/or Sectoral Strategies (15%) Criteria 3: Realism, doability, and fit with Country Strategies (CAS) (25%) Criteria 4: Promoting cross-family/network collaboration in the Bank (10%) Criteria 5: Contributing to capacity building in client countries (15%) Further, the technical reviewers were made aware that their comments on the review template would be shared with task managers seeking feedback on why their proposals were rejected (but not attributed to specific reviewers). In this way, we seek both to meet the applicants' need to know why proposals succeed or fail, and to minimize the transaction cost of giving feedback. Africa Pilot The trust fund legal agreement states that 50 % of TFESSD funds should go to work in/on Sub-Saharan Africa. Currently, the Africa region accounts for 45 % of the cumulative disbursement and commitments. In order to explore ways of achieving the full target of 50 %, a new country program was piloted in Malawi, Mozambique and Tanzania. The pilot intends to engage Country Directors and country teams more formally in the process of developing cross-thematic TFESSD projects, and thereby ensure maximum implementation effort and impact on the ground. The strategic package proposals from Mozambique, Malawi and Tanzania were treated as one proposal and scored just like all other proposals (except the fit with CAS was given an automatic rating of 3).As with other proposals, weak elements in the package were addressed in the reviewers' comments. The results of the pilot did not meet the expectations. Only Mozambique came up with a package that to some degree was strategic and integrated. The Tanzania package was not recommended for approval. On the other hand the Malawi and Mozambique proposals contributed to a higher Africa share (52,3% of the approved proposals this year) than what might otherwise have been the fact. The Bank will continue to consider different ways to keep the Africa share at 50 %. Changes in the Review process Instead of one group of reviewers we decided this year to have two separate groups of technical reviewers: one for the Africa proposals and another for proposals covering the rest of the world. Each 43 group consisted of four reviewers, one from each of the Environment, Social Development, Poverty, and Social Protection families. One reason for splitting reviewers this way was to improve the quality of evaluation by reducing the number of proposals for each reviewer. This year, each reviewer evaluated around 45 proposals, compared to 120 last year. Another reason was to have reviewers with Africa background review the Africa proposals. In a further attempt to improve the review of the Africa proposals, an Africa panel consisting of AFR sector board members and chaired by Chief Economist for Africa John Page, was asked to review AFR relevant proposals and give recommendations to sector board chairs. Two new initiatives this year were an initial information meeting to prepare reviewers for their work, and a follow-up evaluation meeting to learn from experiences. These meetings served the dual purpose of providing more consistency of review and furthering goals of transparency. The criteria used for this year's review were similar to those used in previous rounds, with a slight change in their relative weights. The "Strategic fit with the Priorities of the Call for Proposals" was increased from 30 to 35 %. Fit with "Thematic and/or Sectoral Strategies" was reduced from 20 to 15 %, and "Promoting cross-family/network collaboration in the Bank" was given a slightly greater weight (from 5% to 10%). The criteria "Promoting collaboration with UN & Norwegian & Finnish partner" (last year 5 %) was taken out because favoring Norwegian and Finnish partners seems inconsistent with the fact that the TFESSD is untied, and because collaboration with UN partners is often established once an activity has secured seed funding from TFESSD. The Sector Board Chairs received a consolidated score sheet from the technical reviewers with the proposals ranked in order of their average scores. They considered this and the Africa panel recommendations in their joint meeting to carry out the second tier review. Minor changes where made in the reviewers' ranking, based on strategic and regional priorities and practical experience. A number of proposals were subject to considerable budget cuts and/or were asked to reconsider countries or other elements of the proposal. Four proposals were asked to merge into similar proposals. Revised proposals were submitted to the Sector Board Chairs for review and approval. The four Sector Boards (ENV, SDV, POV and SP) agreed on a final list of recommendations to be sent to the donors. B PARTNERSHIPS TFESSD partners agree that in the pursuit of strengthening local capacity building with trust funds, preference should be given to local institutions and consultants. Where international partners are needed, the availability of competitive Norwegian and Finnish institutions and expertise is explored, though the trust fund is "untied" (see more on Norwegian and Finnish consultants below). Status The June 2004 strategic report provided baseline data on partnerships. This year, trust fund Window updates show that the overall picture on the use of partnerships has not changed. Local partners remain a priority (81% of SDV and 80% of POV total funding for partnerships goes to local consultants). As explained in the four Window reports, the partnerships are highly diverse in nature and scope, and objectives vary considerably. The Social Development and Poverty Window partner institution lists appear in Appendix 3. The Environment and Social Protection Window reports include examples of the use of partnerships in various activities. Request for donor guidance on future reporting on partnerships The Bank requests guidance from the donors on future reporting of TFESSD partnerships, with respect to both the kind of information needed and the interval at which it should be reported. Perhaps two types of data would be appropriate: - a quantification of how much of TFESSD funding is used on different types of partnerships 44 - examples on how partnerships work, how they improve the quality of the activities and to what degree they are integrated into, and build on, existing partnerships. The Bank requests that donor guidance take into consideration the quality of available data and the resources needed to assemble it. Today, the TTLs are asked to include information on planned and existing institutional partnerships (such as described in the first bullet, above) in semi-annual progress and completion reports. The information is categorized into four types: (i) Local (national institutions in the countries in which the activities are/were conducted) (ii) Norwegian or Finnish, (iii) UN agencies, and (iv) Other institutional partners (for example institutions in Part 1 countries or other Part II countries; international agencies not part of the UN family). Until now, the reporting of such data has been useful, but not comprehensive, though it is likely to improve over time as task managers become accustomed to reporting on (and therefore tracking) their partnerships. However, the reporting of such data is a bit of a burden, as Widow Managers must find and extract data manually from progress reports and completion report of each single project. Due to the resources need to extract such data, and the fact that only the completion reports can include data on actual partnerships costs, the TFESSD secretariat suggests that future reporting on partnerships be confined to only those activities that have closed in the previous year. This would give more reliable numbers on partnerships and would decrease the reporting burden on the Window Managers. The current partnership data could not be used for an in depth analysis of the role and impact of individual partnerships. Such an analysis would require more targeted data collection distinct from the regular reporting on TFESSD funded activities. This kind of evaluation could be included in the upcoming external evaluation of the TFESSD. Facilitating the use of Norwegian and Finnish Consultants As in other World Bank work, task team leaders use a variety of strategies to identify partner institutions that are suitable for the TF activities they manage. If an activity includes extensive capacity building, TTLs try to scope potential local partners or to ensure knowledge transfer to local institutions via twinning with international partners. The proposals submitted for TFESSD funding show that some have made firm choices of such institutions at the time of proposal writing, while others are less advanced in the process of identifying partners. To a great extent, TTLs rely on their own professional networks and those of their colleagues inside and outside the Bank to find appropriate institutional partners. TTLs report that their networks are not particularly strong with respect to Norwegian and Finnish partners that are internationally competitive in trust fund-related themes. To reduce this knowledge gap, the TFESSD Technical Advisor arranged meetings with Norwegian and Finnish consultants and institutions during a mission to Oslo and Helsinki in March 2005. At the meeting, potential TFESSD partners were provided with information about the trust fund and how to link up with TTLs in order to be considered for upcoming activities. As a follow up to these meetings, the Norwegian and Finnish consultants filled out a questionnaire (based on input from TTLs) to provided key information on their qualifications to Bank staff. Eight Finnish and 13 Norwegian consultants provide information that was forwarded to the 87 TTLs who had submitted proposals in the FY06 Call, as well as to the four Window Managers. However, it was made clear that TFESSD is untied, and the consultants will have to compete with other international consultants (see email attached in appendix 4). 45 4. FINANCIAL SITUATION A. DISBURSEMENTS AND COMMITMENTS Cumulative disbursements and commitments at the end of April 2005 reached $49.8 million (as shown in Figure 1 and Table 1 below), up $6.8 million from the prior reporting period (October 2004) and $12.8 million from the prior year (April 2004). Increases occurred in absolute terms across all windows (details under individual window reports) with the Social window generating a higher percentage of the increase compared to the other windows (45% compared to 31% for Environment , 18% for Poverty, and 5% for Social Protection). Figure 1, Cumulative Disbursements and Commitments 50,000 45,000 40,000 Social Protection Poverty 35,000 Social Environment 30,000 000) 25,000 ($ 20,000 15,000 10,000 5,000 0 June '00 Nov '00 June '01 Oct '01 May '02 Oct '02 May '03 Nov '03 June '04 Nov '04 May '05 Overall, the level of cumulative commitments and disbursements as a percentage of receipts is about 80% for TFESSD with some variation by window as shown in Table 1 below. The Social Protection window became operational in FY05, accounting for the low percentage. The cumulative level of receipts by window ranges from Environment with 45% of the total, followed by Social with 34%, Poverty with 13% and Social Protection with 2%. 46 Table 1: TFESSD: Receipts, Disbursements and Fund Balance By Window As of April 30, 2004 ($million) Cumulative Disbursed and Committed Receipts As a % Difference Fund As of As of of (10/31/04 to Windows Cumulative 10/31/2004 04/30/2005 Receipts 04//30/05) Balance Environment 29.547 21.928 24.048 81.4% 2.120 5.499 Social 21.753 14.140 17.231 79.2% 3.092 4.522 Poverty 8.340 4.751 5.960 71.5% 1.209 2.380 Coordination 1.009 0.867 0.920 0.053 0.090 Social Protection 1.117 0.063 0.408 36.6% 0.346 0.709 Other 1/ 1.304 1.304 1.304 0.000 Total 63.070 43.052 49.871 79.1% 6.819 13.199 1/ Includes currency gain, investment income, and disbursement for administrative fees. 2/ Window receipts include prorata allocations from parent account based upon actual to date. The cumulative commitments and disbursements for the Africa region increased to $21.4 million, up $2.8 million from the October reporting period. The amount represents 45% of the cumulative total, a slight decline from the 46% reported previously. The Poverty and Social Protection windows have higher rates of about 63%, compared to the Environment and Social windows with about 42% each. B. FUND BALANCE AND PROJECTIONS The total uncommitted fund balance as of April 30, 2005 was $13.068 million (Table 2 below), representing funds remaining in trust fund accounts at various levels waiting to be committed under ongoing or future projects. The high fund balance is due, in part, to the late arrival of the FY06 contributions (refer to Table 3). Additional fund transfers to window accounts are planned before year end, resulting in a projected June 30 balance of $10.368 million. The projected balance will be used to support cash allocations to ongoing projects and to fund the accounts to be established from the newly approved proposals until the FY06 receipts from the donors arrive. 47 Table 2: Projected FY06 Cash Balance ($000) Beginning Balance 13,068 Projected Balance at 6/30/05 1/ 10,368 Minus: Projected Funding Needs Program Coordination 275 Ongoing Projects 2/ 9,541 Of which: Environment 3,000 Poverty 1,590 Social 4,951 Social Protection FY06 New Projects 6,726 Subtotal 16,542 Plus: Contributions Total Donor's contribution 3/ 13,000 Norway 11,500 Finland 1,500 Contribution 12,350 (net of 5% fee and invest income) Projected Balance at 6/30/06 8,876 1/ Transfers to be made before June 30th 2/ Net of commitments and disbursements to date. 3/ Assumed equivalent to FY05 receipts from the Governments of Norway and Finland net of 5% administrative fee and investment income. As of April 30, 2005, donor contributions to the TFESSD totaled $61.56 million as shown in Table 3 below. 48 Table 3 - TFESSD Cumulative Cash Contributions By Donor and Fiscal Year As of April 30, 2005 Contributions Posting Donor Received (US$) FY Date Norway 3,083,295.71 00 Dec. 99 Norway 2,419,512.00 01 Jul. 00 Norway 4,493,711.00 01 Dec. 00 Norway 5,663,970.24 02 Sept. 01 Norway 292,015.00 02 Feb. 02 Norway 4,762,174.43 02 Mar. 02 Norway 210,493.40 02 Mar. 02 Norway 2,647,889.10 03 Dec.17 Finland 1,321,538.72 03 Jan.7 Norway 8,830,085.99 03 Feb.12 Norway 5,705,238.80 04 Nov.19 Finland 1,615,787.73 04 Dec. 31 Norway 5,762,443.20 04 Apr.29 Finland 1,899,416.67 05 Oct.27 Norway 5,581,473.00 05 Dec. 27 Norway 4,073,482.00 05 Jan. 10 Norway 3,201,614.96 05 Apr.25 Total 61,564,141.95 Of which: Norway 56,727,398.83 Finland 4,836,743.12 As of April 30, 2005 49 50