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                    INVESTMENT LENDING REFORM:
       MODERNIZING AND CONSOLIDATING OPERATIONAL POLICIES AND
                            PROCEDURES

                                  CHAIR’S SUMMING UP ∗

                              Meeting of the Executive Directors

                                        October 25, 2012

       Executive Directors considered the document “Investment Lending Reform: Modernizing
and Consolidating Operational Policies and Procedures� (R2012-0204; IDA/R2012-0248). They
approved the recommendations in paragraph 5 of the President’s Memorandum.
        Directors welcomed the consolidation of Investment Lending policies and procedures
aimed at improving the effectiveness of the instrument, without diluting the Bank’s policy
framework. They appreciated that it is a critical building block of the Bank’s modernization
effort, together with the parallel safeguards and procurement reforms, to strengthen the
implementation support and achieve better results for clients.
        Directors underscored the importance of maintaining rigorous standards for economic
analysis and implementation support in the new policy. They also emphasized the importance of
articulating the borrowers’ role in monitoring and evaluation. They underlined the need for
strong focus on implementation of the proposed reforms, and in this regard noted Management’s
proposed actions to provide clear guidance and training for staff and clients, as also
recommended by IEG. Directors noted the importance of effective outreach with internal and
external stakeholders to communicate the benefits and expectations of the reform process.
        Directors supported the expanded scope of the Bank’s rapid response policy to include
fragile and small states, while emphasizing caution in applying this to category A projects,
specifically with respect to social and environmental safeguards. They also highlighted the
importance of the consolidated policies and procedures remaining consistent with the ability of
the Inspection Panel to carry out its mandate. Directors stressed the importance of gender and
poverty issues for all Bank instruments. Directors emphasized the importance of timely project
evaluation for additional financing.
        Directors recognized the importance of this modernization of Investment Lending
policies for strengthened compliance and accountability within the organization. Finally,
Directors look forward to the updated document reflecting changes as agreed at the meeting and
to updates on the experience with implementation.




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    This summary is not an approved record.