Paper Number 22 May 1, 1997 Social Development and Results on the Ground: Task Group Report Social Development Task Group Social Development Papers Paper Number 22 May 1, 1997 Social Development and Results on the Ground: Task Group Report Social Development Task Group This publication was developed and produced by the Social Development Family of the World Bank. The Environment, Rural Development, and Social Development Families are part of the Environmentally and Socially Sustainable Development (ESSD) Network of the World Bank. The Social Development Family is made up of World Bank staff working on social issues. Papers in the Social Development series are not formal publications of the World Bank. They are published informally and circulated to encourage discussion and comment within the development community. This paper was presented to and discussed by the Executive Directors of the World Bank in November 1996. Copies of this paper are available from: Social Development The World Bank 1818 H Street, N.W. Washington, D.C. 20433 USA Fax: 202-522-3247 E-mail: sdpublications@worldbank.org Contents Executive Summary 1 Introduction 7 1. Taking Stock 9 Definitions 9 What is Meant by Social? 9 What is Meant by Social Development? 9 What is Meant by Social Analysis? 10 What is Meant by Social Policy? 10 What Social Issues are Covered by the Bank? 11 What is the Value Added of This Work? 14 What Does This All Add Up To? 18 Improving Our Operational Framework 18 Building Our Knowledge Base 19 Making the Most of Our Multidisciplinary Culture 19 Working in Partnership 20 2. Recommendations 22 Setting the Agenda 22 Getting Results on the Ground 23 Incorporating Social Analysis into Projects 23 A More Flexible Project Cycle 25 Instruments to Support a More Flexible Project Cycle 25 i Social Development and Results on the Ground Using What We Know Strategically 26 Incorporating Social Analysis into the CAS 26 A More Participatory CAS Preparation Process 27 Piloting Social Analysis and Participation in the CAS 28 Learning More 28 Creating a Social Learning Group 28 Re-Orienting Analytical Work 29 Getting from Here to There 31 Adapting and Strengthening the Skill Base 31 How Much Will This Cost? 32 A Summary of Recommendations 32 Action Matrix 33 Notes 34 Appendixes 1. Letter from Management dated March 1, 1996 36 2. List of Members of the Task Group on Social Development 38 3. List of Satellite Group Members 39 Boxes 1. CopenhagenPerspectiveonSocialDevelopment 10 2. SociallySustainableDevelopment 11 3. CivilSocietyContributionstoSustainableDevelopment 13 4. When States Fail 14 5. TheContributionofSocialAssessmentstoProjectQuality 15 6. Social Capital as a Factor in Development Outcomes 17 7. NewPartnersinDevelopment 20 8. UsingSocialAssessments 24 9. The Social Content of the CAS 27 10. New Measures of Progress 30 ii Executive Summary D uring the 50 years in which the help sustain; and failure to take account of World Bank has been in existence, how implementing institutions actually work, the development paradigm has and how communities participate, is a evolved from an almost exclusive focus on common cause of poor performance in Bank- bricks and mortar and investments in supported projects. Taking into account who physical capital to an approach that is likely to gain (and who will lose) is critical recognizes human and social capital as to policy change; and the social context, critical factors for sustainable development. timing, and design of policy changes are With this evolution, building social critical factors in their acceptability and infrastructure, like the creation of physical sustainability. infrastructure, has become a cornerstone of development. Against this background, and at the request of James D. Wolfensohn, President of The Bank's work reflects this evolution in the World Bank, the Bank's Managing a variety of ways. Poverty reduction is now Directors commissioned a Task Group the overarching objective of our activities. headed by S. Javed Burki and consisting of Human resource development has grown economists and other social scientists. They from a fringe Bank activity to one of our were asked to take a considered look at the largest sectors, and investments in capacity various initiatives and approaches underway building are growing. But much remains to on social development issues and to make be done. In spite of economic growth, recommendations for further actions to inequity and social alienation persist, and are advance this work. This report represents a often increasing. Borrowers are more first step in an ongoing process of diverse, as are the needs of their people. To incorporating the social dimensions of take account of these changes, the social development into the Bank's work. It is a dimensions of development need to be fully living document, intended to change in incorporated into the work of the Bank. response to lessons from the field and feedback from our clients. The Bank's operational experience attests to the importance of the social dimensions of Main Findings development in projects and policy work. Without proper analysis of social conditions, and without consultation in determining This report was not easy to write: priorities, the services provided by a project participants brought different disciplinary may not be the ones that the ultimate perspectives to the table and even different beneficiaries find the most useful, or that they assumptions about development. In spite of 1 Social Development and Results on the Ground their differences, however, all Task Group populations, to take the diversity of our members could agree that: clients and their institutions into account in · Development must be people-centered-- designing development operations, and to that is, people's welfare and energy must assess political commitment and risk. On the be the focus of the development agenda. social underpinnings of sustainable development, work is just beginning. · People, their institutions, and societies are diverse, and this diversity must be taken Building on what has already been done, into account if development operations are the Task Group concluded that progress can to be feasible and effective in their be made quickly in the following areas: particular social context. · Integrating Policies and Procedures. The · More work is needed to understand the Bank's social policies have been developed role and importance of relationships and in a piecemeal fashion and need to be institutions (social capital) in fostering better integrated and more comprehensive. sustainable development. At the same time, better guidance on priorities is needed. They also could agree that development requires mutually reinforcing changes in · Mainstreaming Social Analysis and economies and societies, and development Participatory Approaches in Projects and cannot be sustained without both. Analytical Work. To do this, additional technical and financial resources are likely With these principles in mind, the Task to be required. Group took stock of social initiatives currently underway in the Bank, and of the · Adapting Our Existing Project Cycle and value added of this work. This report Lending Instruments. This is needed to reviews activities in the more structured accommodate both the diversity of our areas of work, such as poverty, gender, clients and the need for innovation. resettlement, and indigenous people, and in It was also agreed that we need to move newer cross-cutting areas such as rapidly to learn more in areas where less is participation, social assessment, and work known: for example, about the social with the civil society. It also provides a quick relations that underpin economic behavior, overview of emerging areas of interest such the rationale and modalities for as social capital, post-conflict reconstruction, strengthening social institutions and social and issues of state and society. capital; and the changing roles of the state, The Task Group also considered the market, and civil society. To achieve these value added of this work. This ranges from objectives, multidisciplinary approaches will improving ownership (through participation) be required. and reducing social costs (for example, Finally, there was widespread through our work on resettlement) to recognition in the Task Group that, given the advancing our understanding of poverty and complexity of both economic and social the means of addressing it (through social development, the Bank can have little impact analysis and the design of appropriate acting on its own and simply adding to its interventions). The Task Group found that agenda and capacity. In the future, it will methods and tools are being refined and are need to put far more emphasis on changing the way the Bank does its work. partnerships: first, with borrowers and with But more remains to be done to help the range of development actors in client Borrowers involve diverse and vulnerable countries; and second, with other agencies 2 Executive Summary and organizations that have proven track examined in the context of broader work records and a comparative advantage by on new instruments. virtue of their grass roots experience, country familiarity, or specialized functions or · New funding mechanisms to facilitate knowledge (for example, on post-conflict piloting and support civil society reconstruction). development activities should be incorporated into the proposed Bankwide Recommendations Development Fund. The President and senior management have · The Bank should be ready to respond to endorsed the following recommendations, the anticipated increase in demand for based on the work of the Task Group. social specialists, and Bank staff members should receive additional training to · The Bank should make clear its intention enable them to better incorporate social to incorporate social concerns into its concerns into their work. activities. The President's Annual Meetings speech on October 1, 1996, was · Capacity should also be strengthened in an important step in this direction. resident missions by the appointment of nongovernmental organization (NGO) · A proposal should be prepared for a 1999 liaison staff or social specialists as World Development Report (WDR) on appropriate. social development. · Every effort should be made to meet these · Social analysis should be incorporated into objectives in a budget-neutral fashion projects through social assessment (SA) or through reallocation of the existing other instruments, as appropriate; and a administrative budget, although this will sourcebook should be prepared that be difficult. indicates when an SA is needed and how it should be carried out. · The Bank should establish a multidis- ciplinary Social Learning Group (SLG) to · During FY97/FY98 all regions should follow up on the recommendations of this present to the management and the Board report and to monitor implementation. two or three country assistance strategies This group should prepare a progress (CAS) that provide a full treatment of report after one year. social issues. · Concrete steps should be taken to reorient Actions Taken analytical work and ensure that economic Since this report was completed, a number of and sector work (ESW), and the broader actions have been taken to advance this research program, give greater coverage to agenda. Chief among these are preparation social factors. of regional social action plans; approval of · The project cycle should be used more the Strategic Compact, which provides flexibly, making full use of piloting, social critically needed resources; and the formation analysis, and participatory approaches. of a Social Development Family in the Constraints on flexibility should be Network for Environmentally and Socially identified and addressed. Sustainable Development (ESSD). The following steps also address Task Group · Recent innovations in adapting lending recommendations. instruments (such as long-term development agreements) should be · Social development featured prominently 3 Social Development and Results on the Ground in Mr. Wolfensohn's speech at the Annual given to new work in the Europe and Meetings on October 1, 1996. Mr. Central Asia Regional Office (ECA). Wolfensohn stated that there is "a need for Support will be provided by members of a broader, more integrated approach to the Social Development Family and the development--a new paradigm if you Network for Poverty Reduction and will." He noted that "social, cultural, and Economic Management (PREM). institutional factors are the key to success and sustainability. . .without appropriate · As part of the New Products Task Force, a social underpinnings, it is difficult for set of more flexible lending instruments development to succeed and virtually has been proposed and approved for impossible for it to be sustained." further piloting. Task managers for some 35 projects (across regions and sectors) · The Social Policy Division in the have expressed interest in piloting Environment Department and the adaptable lending approaches in their Development Economics Department operations. (ENVSP/DEC) prepared and submitted a draft outline for a WDR on social · A Civil Society Fund will be considered in development in late 1996. The purpose of the framework of the proposed the outline was to lay the groundwork for Development Grant Facility, which is a possible WDR on social development in being prepared by the Strategy and 1999 and foreshadow research needed for Resource Management Vice-Presidency. a WDR to be carried out on this topic. The Board discussion of this proposal is subject for the 1999 WDR will be decided anticipated in May 1997. in late 1997. · The Social Development Family is giving · All regions formally submitted social high priority to skills upgrading and action plans that build upon and integrate recruitment of professional staff. Efforts to ongoing work on poverty, participation, build a pipeline of highly qualified social assessment and gender. An outline technical specialists are already underway for the Sourcebook on Social Assessment is in ESSD. An expanded training program being prepared by the SA Task Group in is planned. the new Social Development Family, and · NGO coordinators have been appointed in screening criteria to determine priorities all resident missions in Africa and Latin will be available in FY97. America and the Carribean (LAC), and · Regions are in the process of identifying many Asian resident missions have social CASs that will highlight the underlying specialists. Discussions are underway in social issues. Such CASs have been ECA. NGO coordinators will assemble in proposed for Colombia, Kenya, Peru, Washington in May for discussions on Senegal and Vietnam among other ways to improve their work. countries, and social issues will be covered · Regional social action plans have been in many other CASs not formally prepared, and incremental costs have been designated as pilots for this purpose. included in the Strategic Compact, which Additional guidance is being developed. was approved by the Bank's Executive · Regional social action plans include Directors on March 20, 1997. The proposals to identify key social issues by compact will make resources available on region and to initiate analytical work to July 1, 1997. address these concerns. Priority has been · A Social Learning Group has been formed, 4 Executive Summary and is chaired by S. Javed Burki and Ismail monitorable benchmarks for six months, Serageldin. It will ensure that all networks 18 months, and three years have been incorporate social development concerns, proposed. that outside advice on social development is solicited, and that reporting · Resources for social development requirements are met. initiatives have been made available under the Strategic Compact for work in the The formation of the Social Development regions and anchor. Monitoring indicators Family, which we see, in part, as an to track implementation of compact outgrowth of this report, is also moving initiatives are under preparation. quickly. In conclusion, we believe that efforts to · Participation and NGO staff in the Poverty understand, build upon, and harness social and Social Policy Department, and social forces on behalf of development can have an policy staff in the Environment immense payoff in bettering people's lives, Department and regional social scientists, while failure to mobilize social forces in a have become part of the Social positive way can have disastrous Development Family in ESSD. consequences for development. The Task · A Post-Conflict Unit will be established on Group wrote this report in the hope that it July 1, 1997, within the Social would make a modest contribution toward Development Family in ESSD. avoiding adverse social impacts, enhancing positive social outcomes, reducing poverty, · A Social Development Board has been and promoting sustainable development. We selected and is meeting regularly. A work believe that recent actions will help us move program has been developed, and more quickly in this direction. 5 Social Development and Results on the Ground 6 Introduction O ver the past 50 years, there have been This question is critically relevant to the unprecedented advances in the well- Bank's efforts to promote poverty reduction being of people living in developing and sustainable development. Many of the countries. Personal incomes have more than developing world's poor people live in doubled. Infant mortality rates have fallen-- countries where the policy and institutional from more than 175 per 1,000 births to about framework is not conducive to rapid broad- 60 per 1,000 today. Life expectancy has based economic growth and to the increased by more than 50 percent. Primary investments in human and social capital that school enrollment has jumped from under are needed to make significant inroads into half to more than three-quarters. The poverty. Other countries are struggling to prevalence of poverty has declined, although catch up with population growth or have more than 1.3 billion people in developing experienced setbacks because of civil conflict. countries barely eke out an existence on less Since the most successful countries are than one dollar a day and endure the misery graduating from the Bank and gaining access and degradation that go with such poverty. to private funding sources, the Bank's business is increasingly weighted towards One driving force behind these changes poor countries, which often have weak policy has been economic development. No country frameworks and development problems that has been successful in continually improving lie beyond the purview of narrowly its social indicators, feeding its people, and construed economic development models. providing health care and education for its young without sustained economic growth. Solving these problems--which include East Asian countries provide the most vicious circles of adverse economic, social, important example. They have grown very and political dynamics, limited institutional rapidly over the past 25 years, and they have capacity, and often violence and conflict--is dramatically reduced poverty. How they the key development challenge ahead. This did it is well documented. They pursued report argues that to meet this challenge, sound economic policies and invested heavily social and institutional analysis must be in health and education, and in improved. Such analysis can help borrowers organizations and institutions. But what is and development practitioners look beyond less fully understood is why those countries one-size-fits-all approaches to country were able to adopt and sustain sound policy problems and prospects, and to take into and project frameworks; and why many account the potential impact of relevant other countries were unable to do so. historical, cultural, and social factors in the 7 Social Development and Results on the Ground design and implementation of development Group established a number of satellite initiatives. groups bringing together about 100 additional staff members. In addition, Against this background, and at the consultations were held with external request of Mr. Wolfensohn, the Managing experts, representatives of NGO's, and Directors, Operations, commissioned a Task bilateral development assistance agencies. Group headed by S. Javed Burki "to take a Many of the issues addressed by the Task considered look at the various initiatives and Group were also discussed in a retreat of the approaches underway within the Bank on Bank's social scientists and in meetings both social development so that more systematic inside and outside the Bank. use could be made of best practice concepts and findings." Task Group members included Chapter 1 of this report provides Shahid Javed Burki, Michael Cernea, Gloria definitions, takes stock of where the Bank is Davis, Hansjorg Elshorst, Scott Guggenheim, on social analysis and social development Ishrat Husain, Maritta Koch-Weser, William and the value added of this work, and charts Partridge, Lyn Squire, Maurice Strong, and a course for getting to where we want to be Shahid Yusuf. as an institution. Chapter 2 provides recommendations and a matrix for action. Following initial meetings, it became The appendixes include Task Group Terms of apparent to the Task Group that the breadth Reference (TOR), and the names of Task of the topics it was commissioned to handle Group members and those in satellite groups. required in-depth examination. The Task 8 1. Taking Stock Definitions · Positive Meaning. At one end of the definitional continuum, social The word social and the terms social development simply refers to the condition development, social analysis, and social policy of people--their level of education, quality are used widely, but often with different of life, and the quality and sustainability of meanings; and the concept of socially their relationships and institutions. It does sustainable development is relatively new to not presuppose what ought to be, it simply the Bank. Therefore, given their centrality to describes what is. this report, this section provides definitions. · Normative Meaning. Seen through a What is Meant by Social? normative lens, however, social The word social has a number of meanings. development also connotes social goals It can refer to education and health (the and objectives. For example, at the 1995 social sectors) or to poverty reduction and World Summit for Social Development policies to benefit the poor and (WSSD), governments issued declarations disadvantaged (social welfare). It can also supporting investments in poverty refer to the relationships and institutions alleviation, human resource development, within a society (social capital) or to the employment creation, and other objectives historical and institutional conditions that such as democracy, social justice, affect project and policy outcomes (the social nonviolence, and equality (see box 1). In context of development). Because people can this sense, social development entails use the language in various ways, there is objectives to be pursued in their own right. some confusion. To date, the Bank has spent This normative versus positive debate considerable time on the first two meanings; has been at the center of much of the in this report more attention is paid to the discussion within the Task Group. All task third and fourth. This report focuses more group members agreed that social conditions on societies, somewhat less on individuals. provide the context for economic What is Meant by Social Development? development. But some members took the position that the objectives of the WSSD There are many definitions of social reflect both an emerging international development. But there also is a continuum consensus and a testable set of hypotheses that matters to practitioners and that figured about the social correlates of sustainable prominently in the debates among Task economic and social development; factors Group members. that are therefore of crucial interest to the 9 Social Development and Results on the Ground Bank's development efforts. Others, however, · People, institutions, and societies are argued that the declarations of the WSSD diverse. In order to ensure that projects include objectives and statements of and policies are feasible and effective, we conviction that go well beyond the need to understand the social, cultural, development mandate of the Bank. and institutional context in which they are carried out. Box 1. Copenhagen Perspective on Social Development What is Meant by Social Analysis? Social analysis examines, and in some At the conclusion of the 1995 World Summit contexts seeks to explain, the differences for Social Development 117 heads of state adopted the Copenhagen Declaration on Social among people, their institutions, and Development. They agreed, among other societies. Social analysis is undertaken in a things, to create a framework for development Bank context to ensure, among other things, that is dedicated to the eradication of poverty that projects and policies take account of and that increases the resources spent on differences between people and between education and health. In addition they social groups when targeting beneficiaries, pledged to support development that is and when assessing who benefits, and when people-centered and participatory; that takes evaluating impacts and risks. Social analysis account of diversity; that is pluralistic, can help ensure that operations are feasible nondiscriminatory, and gender sensitive; that in the context of a particular country, and promotes accountability and transparency in government; and that builds the capacity of that social and institutional constraints are all development actors, including the state, overcome, or operations are redesigned, the private sector, and civil society. They where constraints cannot be adequately affirmed that economic and social goals are addressed. inextricably linked and that both economic and social factors contribute to sustainable Social analysis and economic analysis are development. complementary. Together, they can help ensure that policies and investments achieve their objectives. Yet misleading stereotypes Considerable debate notwithstanding, hinder collaboration between disciplines. The Task Group members agreed on the stereotype that economists consider only following: macro-efficiency issues and that · People are the ends and the means of noneconomic social sciences are not development. How people fare is the conducive to hard policy analysis are both measure of development effectiveness, and wrong. In reality, the boundaries of good their involvement in and ownership of analysis are becoming blurred. Economists development initiatives are critical to their are concerned about political economy and success. social capital as formulated by political scientists, and a variety of disciplines can · Relationships, cultures, and institutions contribute to economic theory. The challenge constitute a society's social capital. While is to amplify work in those areas where much has been done to analyze and invest boundaries are blurred, and to make this in physical and human capital, and to work operational. manage natural capital more wisely, more is needed to understand and strengthen What is Meant by Social Policy? the social capital on which development To some operational staff, social policy also depends. suggests the coverage of specific operational 10 Taking Stock directives (ODs ) including OD4.01, Box 2. Socially Sustainable Development Environmental Assessment; OD 4.20, Indigenous People; and OD 4.30, Resettlement, One hundred years ago, the majority of the since these are the most operationally visible world's people lived in small communities that aspects of formal social policies in the Bank, were mainly self-sufficient. They raised their and they were the entry point for social own food and organized their own affairs. analysis in Bank operational work. But social Today, only a small proportion of the people in policy is clearly much broader and more industrial countries produce food directly; the pervasive. The aim of social policy is to others are dependent on them, and national integration which has been occurring for barely improve human welfare, and to influence the two centuries, is now being overtaken by the distribution of income and power in a global integration of economies and societies. society. For this reason, social policies are among the most important and most sensitive What is it that allows a society to move from policies of any state. Policies and instruments small-scale self-sufficient communities to one for poverty reduction are the most obvious of almost unimaginable complexity and manifestation the Bank's social policies, but interdependence? Technology and economic development are among the reasons, but the Bank also encourages countries to changes in relationships and values, and in promote gender equality, to avoid policy organizations and institutions are every bit as distortions that disadvantage urban or rural relevant. It is this social capital that permits populations, and to protect the rights of both economic specialization and social vulnerable and excluded groups. Economic integration at the same time. policies, by default or design, also influence the distribution of resources and power. Is such growth and differentiation sustainable? Experience teaches us that what comes together can come apart. Inequalities What Social Issues Are Covered between people, violence in cities, and conflicts by the Bank? between people and societies can undermine individual and institutional relations, and Reducing poverty and promoting sustainable slow or destroy economic progress. For these development are two of the overarching reasons, we are increasingly aware that objectives of the Bank's work. This section economic, environmental, and social factors all briefly inventories Bank initiatives to promote play a role in sustainable development. poverty reduction, and to foster people- centered and sustainable development. This stocktaking exercise is not exhaustive; it is of Country Assistance Strategies (CASs). So meant only to suggest the range of social far, poverty assessments have been carried concerns confronting the Bank and its out for some 62 countries covering 80 to 90 Borrowers and the value added of addressing percent of the developing world's poor them. people.2 Poverty assessments have recently Poverty Reduction. In the 1970s the Bank begun to use participatory and qualitative moved from its initial bricks and mortar tools, which have shown that in addition to approach to development into project material impoverishment, poverty involves interventions targeted to "basic human feelings of isolation, personal insecurity, and needs." These led to the 1980 WDR on vulnerability to violence. Human Development, and the 1990 WDR on Gender. The Bank has also begun to look Poverty. A subsequent policy paper on beyond poverty to diversity and social poverty reduction,1 called for poverty inequality, particularly in the area of gender. assessments as a central input into the design Bank policy statements recognize that 11 Social Development and Results on the Ground women's participation in economic and to achieve the goal of income restoration social development is essential, both for among displaced populations. In recent promoting economic efficiency and for years the Economic Development Institute reducing poverty and as a laudable objective (EDI) has been instrumental in building in its own right. The Bank has taken a capacity in the Bank's client countries to number of steps to strengthen attention to carry out resettlement operations. gender issues, and 28 percent of projects approved in FY95 included gender Participation. Participatory processes are components. But gender concerns are not increasingly being incorporated into the work incorporated systematically into projects and of the Bank and its Borrowers. Putting People are regarded as an add-on by many. First described the role of people in development and foreshadowed many of the Indigenous Peoples. Since the early 1980s themes in this report.3 Listen to the People the Bank has recognized the special needs of advocated qualitative approaches to learning indigenous peoples in the development from the poor themselves; and led to the use process. The Bank's operational policy (OD of qualitative beneficiary assessments.4 4.20) calls for special measures to protect the Building on this, the Bank's Africa Region lands and resources of indigenous peoples, adopted systematic client consultation in and to ensure their informed participation in programs and sector work; subsequently, the development decisions that affect them. Report of the Learning Group on Participatory Implementation of this policy is most Development,5 and The Participation advanced in the Bank's Latin America and Sourcebook, demonstrated that participation Caribbean region. In South and East Asia, can increase stakeholder ownership and country profiles have increased the Bank's help reach the poor. knowledge of ethnic minorities, and in the Africa Region, there is increasing awareness Country Assistance Strategies. CASs are of the need to incorporate indigenous more frequently incorporating the findings of institutions, values, and knowledge into the poverty assessments, although there is still a development process. Some of the principles long way to go. CASs are also becoming and lessons from this experience are being more participatory and this participation is transferred to poverty alleviation programs focusing attention on social concerns. CAS with vulnerable ethnic groups. documents today routinely incorporate the views of Borrowers and government officials, Resettlement. In the past 10 years over and they increasingly build on dialogues with two million people have been resettled in business, labor, women's organizations, more than 200 Bank-assisted projects. The voluntary, and other nongovernment groups. resettlement directive of 1980 (reissued in Some of these dialogues have been facilitated 1986) set forth the principles that Bank- by EDI. With the consent of Borrowers, assisted development operations should consultations with donors and other avoid or minimize displacement and restore multilateral development organizations incomes when resettlement is unavoidable. working in the country are now common. A recent review, Resettlement and The recent CASs in Burkina Faso, Malawi, Development: The Bankwide Review of Projects and Vietnam, for example, systematically Involving Involuntary Resettlement, 1986-1993, incorporated a range of stakeholder views. showed both the progress that has been made in Bank-assisted projects and in Social Assessments. Recognizing that the countries adopting Bank standards for Bank's social policies are fragmented and ad resettlement, and the effort that is still needed hoc, and that social analysis and 12 Taking Stock participation frequently have common organizations, institutions, attitudes and objectives and tools, Bank social scientists values that underpin economic and social issued guidelines for social assessment in development. The Bank has made significant 1994. Social assessments provide an investments over the years in public sector integrated and participatory framework for institutions and has increasingly supported gathering data and prioritizing social decentralization, capacity building and concerns. They are carried out in a project community driven initiatives; but to date only context to identify key stakeholders and a limited amount has been done to establish a framework for their participation, understand the variety of relationships and to enhance social benefits and reduce social institutions in the public, private and civil costs, to ensure that objectives are feasible sectors that contribute to development and appropriate in a particular social effectiveness, and to describe their functions context, and to ensure that the capacity to and comparative advantages. deliver expected benefits is adequate or is strengthened. Though not mandatory, about Civil Society. Under Mr. Wolfensohn's 70 social assessments were completed in leadership, the development role of both FY95-96, funded in part by the Fund for private sector and civil society have been Innovative Approaches in Human and Social highlighted. As a result, with Borrower Development (FIAHS) and by donor trust consent the Bank has increasingly reached funds.6 out to different segments of the society for dialogue, ESW, and CAS discussions. Social Capital. The Bank has long Operational collaboration between the Bank invested in physical and human capital, and and NGOs has intensified. While only 6 recently it has made investments in the percent of all Bank-financed projects in the management of natural capital. But thinking 1973­88 period included provisions for some about social capital is relatively new.7 Social form of involvement by NGOs, such capital refers to the relationships, organizations were involved in about 30 Box 3. Civil Society Contributions to Sustainable Development By civil society we mean the web of associations, social norms, and practices that constitute activities of a society as separate from its state and market institutions. A healthy, strong civil society requires a variety of institutions that represent all social groupings. It also requires an open, constructive interaction between the civil society organizations and the state and market sectors. Civil society organizations serve a number of essential functions in promoting sustainable development: · They provide a means for expressing the varied and complex needs of society, particularly of its most disadvantaged. · They motivate individuals to participate as citizens in the affairs of their societies. · They provide services that can target the poor, and are efficient and flexible. · They promote accountability of both governments and the market. · They serve as a vehicle for reaching a consensus about tradeoffs; about strategies for development; and on the form, content and sequencing of social policies. For all these reasons, they are crucial to sustainable development. 13 Social Development and Results on the Ground Box 4. When States Fail Between 1980 and 1995: · Over 50 countries have been involved in major protracted civil conflict, with appalling damage to human lives and physical infrastructure. · Fifteen of the 20 poorest countries in the world have experienced civil strife. · Almost 70 million people have either become international refugees or experienced extended periods of internal displacement; half of these are in Africa. · Of the 60 lowest income countries, half have been directly involved in warfare in this period. Twelve of the remaining 30 have supported major refugee populations. · Over a 100 million land mines have been planted, costing untold lives and billions of dollars to remove when peacetime efforts resume. International funds for conflict-related relief and peacekeeping operations have reached such a magnitude that they reduce assistance for peacetime development. percent of all Bank-financed projects in FY93, demobilization and reintegration of and between 40 and 50 percent of projects excombatants, reintegration of displaced approved in FY94­FY96.8 To support this populations, and de-mining. The Bank's work, 28 NGO coordinators were added to post- conflict experience is outlined in the Bank resident missions in FY96. Recently, the framework of the Post-Conflict Reconstruction: Bank-NGO Committee has assumed The Role of the World Bank that was presented increasing importance as a key forum for to the Bank's Board in February 1997. policy discussions among senior bank managers and NGO leaders from around the Governance. The relationship between world. good governance and a well functioning economy and society is increasingly evident, Post-Conflict Reconstruction. Conflict can but Bank work in this area is at an early stage eradicate decades of development--Bosnia, of development. The Legal Department has Cambodia, Rwanda, and Uganda are described the legitimate areas for Bank obvious examples (box 4). Since its inception, involvement;9 and good work has been done the Bank has been involved in post-conflict in Africa on endogenous institutions and the reconstruction; and in the last decade or so, assumptions on which they are based.10 The operations in countries emerging from 1997 WDR explores the relationship between conflict have become a significant part of the governance and economic management, and Bank's portfolio. The Bank plays a major role will help clarify the changing roles of the within the international community by state, the market, and the civil society. providing a range of non-lending services-- advice, analysis and coordination of post- What Is the Value Added of This Work? conflict development activities--as well as by lending for reconstruction and economic This section looks at the value added of the recovery activities. Recently, the Bank has above initiatives in terms of improved focus, become involved in new areas of post-conflict sustainability, and results on the ground in activity such as refugee reintegration, Bank-supported development efforts. 14 Taking Stock Poverty Reduction. The surge in poverty and the Bank is now the largest external assessments and analysis and the lessons of provider of resources for investment in the experience over the past five years are social sectors in the developing world.12 It is helping the Bank refine its country strategies also worth noting the gains that have been and focus them on the specific needs of made in collecting information--the number poverty reduction. This is in line with the of household surveys has more than doubled two part strategy of the 1990 WDR. The first in recent years. As a result of poverty part of that strategy, broad-based growth, is assessments covering 80 to 90 percent of the central to most country assistance strategies. developing world's poor, the Bank is now the The Morocco country economic greatest depository of information on memorandum (CEM) illustrates what can be poverty. done--it demonstrates the progression from trade policy reform, through export growth, Resettlement. The benefits of good social to increased demand for labor.11 Progress on analysis are particularly clear when the high the second part of the strategy, human costs of inadequate analysis are considered. capital development, is also substantial. Following critical studies by the Morse Lending for this purpose averaged five Commission and Operations Evaluation percent of the total in the period FY81-83, but Department's (OED) review of resettlement stood at 16 percent in the period FY93-95, in selected Bank operations, the Bank's 1994 Box 5. The Contribution of Social Assessments to Project Quality Social assessments (SAs) provide a framework for incorporating participation and social analysis into Bank operations. Bank-supported social assessments carried out over the past three years have also had a number of specific objectives. These include: Giving Voice to the Poor. The task team for the Mexico Resource Conservation and Forest Sector Review used the social assessment process to identify the range of stakeholder groups, to encourage policymakers to listen to the poor, and to get the poor to articulate their own concerns and proposals. The social assessment process raised policymakers' awareness of the potential of communal forest enterprises for reducing local poverty, and led to the identification and design of a participatory forest management project. Ensuring that Projects are Feasible. The Fez Medina Rehabilitation Project SA included extensive consultations among official policymakers, religious and civic leaders, merchants, artisans, and others to generate a strategy for urban rehabilitation consistent with local values and needs. The SA generated a variety of ideas not considered by outside planners--for example, using the sites of buildings in ruins to provide social service centers, regulating encroachment by merchants into residential areas, disaggregating rehabilitation plans by neighborhood, allowing those displaced by access road construction to be rehoused in adjacent areas, and supporting craft associations to either upgrade their present locations or move as groups--which have been incorporated in project design; and the SA also raised local interest in, and commitment to, upgrading and maintaining the Medina. Ensuring that Projects are Effective. Consultation with more than 800 households, neighborhood groups, members of the academic community, and NGOs in the SA for the Greater Baku Water Supply Rehabilitation Project in Azerbaijan revealed the critical geographic and socioeconomic variations in water supply conditions in Baku. This allowed project designers and other stakeholders to make adjustments in the project design to meet specific local needs, identify priority areas for water supply, and introduce changes into water pricing policy in the country. 15 Social Development and Results on the Ground Review of Involuntary Resettlement showed design.15 Public participation in Global dramatically how the lack of attention to the Environment Facility (GEF) projects has been social impacts of displacement caused long- found to be the single most important term impoverishment in affected populations. variable in early project success.16 Even in Since the review, resettlement preparation sectors such as transport, infrastructure, and has improved and all projects with energy development, participatory displacement now have resettlement plans approaches are increasingly seen as critical and baseline surveys at appraisal.13 The for success. The 1994 WDR, for example, 1986 resettlement policy has also had impacts argued that participation of beneficiaries can beyond the Bank. Since this policy was help find solutions even in large issued, it has set the international standards infrastructure operations, since they often by which resettlement is judged, and other involve local public goods.17 donors, such as the African Development Bank (ADB), the InterAmerican Social Assessments. Although formal Development Bank (IDB), and the social assessments have been carried out only Development Assistance Committee (DAC), for the past two years and quality has varied, have adopted resettlement policies based on a study of 42 social assessments in Bank- the Bank's policy. Governments and public supported projects and ESW showed that sector agencies in Brazil, China, Colombia, they can help target projects to the poor, and Indonesia, Uganda, and Vietnam, among when done early enough can influence or other countries, have also worked with the change project design (see box 5).18 Bank to develop new resettlement and land Following input from parents and teachers in acquisition policies that provide improved the FY94 Turkey Basic Education Project, the frameworks for reconciling development project's goal was changed from providing needs with local rights and interests. These more schools to improving the quality of efforts offer new hope and opportunity to existing schools. More recently, in the FY96 those displaced by development operations. Russia Coal Sector Restructuring Project, the social assessment highlighted the impact of Participation. Case studies of Bank- mine closings, not only on the miners financed projects involving participation themselves but on their communities. Given consistently point to increased use of project these findings, plans to relocate miners were services, decreased operational costs, and dropped and the emphasis was shifted to increased rates of return. A review of 121 measures to sustain critical community community based water supply projects services, develop community specific funded by various agencies found that only 3 responses, and increase transparency and percent of the projects with low trust. An independent mechanism was also participation rates were highly effective, established to monitor the social impacts of while 81 percent of projects with high proposed interventions and remedial participation were highly effective. 14 In this actions.19 same study, community empowerment was found to be the single most important Social Underpinnings and Political variable for explaining project success. A Economy of CASs. As noted above, CASs are review of 28 environmental assessments in increasingly building on poverty assessments, the Latin America and Caribbean (LAC) and the Country Departments that have Region between FY89-94 also found that pursued participatory CASs have reported popular participation and consultation with good results in terms of better understanding affected communities, local NGOs, and local by the Bank and better ownership by the governments led to improvements in project country. But otherwise social issues have not 16 Taking Stock been well treated in the CAS. OED country assistance reviews for Argentina, Ghana, and Box 6. Social Capital as a Factor in Zambia pointed to weak ex ante assessments Development Outcomes of country ownership and risks as a cause of A recent empirical study by Deepa Narayan, problems with past Bank strategies. A recent Voices of the Poor: Social Capital and Poverty CAS retrospective noted that "too little (1996), attempted to quantify the contribution attention [was] paid to the social of social capital to development. Using data underpinnings and political economy of from 750 households in 45 Tanzanian reform" in the FY96 cohort of CASs.20 The villages, it measured social capital in terms of social underpinnings and political economy membership in groups and networks. of reform have increasingly been central Multivariate regression analyses established focuses of CAS reviews, and the EXC that village level social capital was a key contributor to household welfare, even after discussions of the degree of support for taking into account the size of the household, reform and other development issues by male schooling, female schooling, household various stakeholders has proved a good assets, market access, and agroecological foundation for reviewing proposed lending zone--and after controlling for the and ESW. contribution of human, physical, and natural capital. The effect of a one standard Assessing Commitment and Risk. The deviation increase in village-level social most recent evidence of the value added of capital was higher ($60) than for market analysis of stakeholder commitment comes access ($33) or female schooling ($30). from the Quality Assurance Group (QAG), whose Review of Public Enterprise Reform and Privatization Operations reviewed the Bank's public enterprise reform portfolio.21 The Institutions. Institutional analysis is study cites two reasons for unsatisfactory clearly critical for project and program public enterprise reform loans--weak success. OED has found that benefits from commitment of the government and over the three-quarters of the 1993 cohort of optimistic design--and suggests three completed projects that achieved substantial remedial steps: greater candor in appraisal institutional development were likely to be reports; rigorous appraisal of country sustainable, whereas only one-fifth of those ownership and political commitment to with no institutional development were likely reform; and detailed risk assessments, to last beyond the project's lifetime.24 Its including political risks. It refers to sectoral evaluations of projects, from health Bureaucrats in Business, which established the care delivery to rural development, have critical importance of assessing government repeatedly pointed to problems caused by commitment via stakeholder analysis. 22 The inadequate appreciation of social and annual report on portfolio performance institutional factors in project designs. (ARPP) review of the FY94 adjustment Social Capital. The evidence is mounting portfolio also points to the critical importance that investing in relationships and of stakeholder commitment in policy work. It institutions pays off. Grameen-type credit found that weak commitment was the cause agencies that rely on social solidarity and of most of the implementation problems community norms of trust have proven to be encountered by adjustment operations, and especially effective for reaching the poor, and that Bank appraisals were not uncovering based on this experience the Bank is these weaknesses in their analyses or their supporting Consulting Group to Assist the risk assessments.23 17 Social Development and Results on the Ground Poorest (CGAP) and other micro credit the value added of Bank attention to conflict initiatives.25 There have also been good is clear. Development cannot be achieved results from efforts to strengthen and use while countries are absorbed in paralyzing informal and civil society institutions such as conflicts; and equitable development can water users' associations, joint forest contribute to the prevention and management groups, and indigenous management of debilitating conflict. In post- federations. Projects such as the United conflict countries such as Bosnia, Uganda, Nations Development Programme/World and West Bank and Gaza, where the core Bank Water and Sanitation Program, the problems of conflict and the special Asian Metropolitan Improvement Program, circumstances of reconstruction are and others have shown that community- paramount, understanding country context, driven initiatives that develop social and working quickly and flexibly to reinforce infrastructure yield healthy rates of return. the conditions for a long term peace are However, strengthening social capital as an prerequisites for sustainable development. end in itself is only beginning to be understood and attempted (box 6). Governance. Very little formal work has been done in the Bank on the social and Civil Society. There is some statistical political correlates of economic development, evidence that collaboration with NGOs but work on decentralization, for example, improves project effectiveness, though more shows a strong relationship between degrees detailed analysis is needed (OED is of decentralization, accountability, and embarking on such a study). NGOs development effectiveness.27 The 1997 WDR contribute to the Bank's participatory on the State in a Changing World focuses development objectives by promoting both attention on the role of government in the uptake and ownership of projects by local fostering people- and market-friendly communities.26 In the Balochistan Primary development, and highlights the need to Education Project in Pakistan, for example, understand what is possible in different NGO involvement promoted the building and country contexts. maintenance of 116 schools by community groups. A project review found that female What Does This All Add Up To? enrollment in these schools was approximately 67 percent compared with 13 Improving Our Operational Framework percent for the province as a whole. In the Itaparica Resettlement and Irrigation Project The Bank's operational approach to social in Brazil, NGOs provided an information policy and social development has evolved in channel for the affected families and assisted a piecemeal manner and is not systematic. in channeling the views of approximately The analysis of poverty and the social impact 8,000 families to the government, thus of specific projects are increasingly being helping to ensure that adequate addressed, but we are not fully there. We are compensation was provided for the resettled only beginning to assess stakeholder families. commitment and risk--in CASs, in adjustment operations, and in our policy Post-Conflict Reconstruction. The Bank's dialogue. recent work in reconstruction is relatively new, and no comprehensive evaluations have Specifically the Task Group found that: been completed. OED is currently conducting · Social policies are fragmented and ad hoc a major study of the Bank's work in and need to be integrated into a more countries where conflicts occur. However, comprehensive framework. But given the 18 Taking Stock magnitude and diversity of social issues, · More work is needed on issues of state and policies also need to guide staff to priority society, and on governance. The 1997 concerns. WDR is an important start in this direction · Social analysis and participatory and should lead to more questions. New approaches can improve project and work on governance is a part of the policy work and should be mainstreamed. Strategic Compact. A critical constraint is the timely Just as the Bank amassed documentation availability of resources and skills; but over time to show that economic growth and criteria are also needed for determining development could not occur without what standards of social analysis and appropriate monetary and fiscal policies, and participation should be applied, in what to identify best practices, we now need circumstances. document the relationship between economic · Many task managers feel constrained by and social development, the role of social the existing project cycle from designing capital, and the governance arrangements projects that are small and innovative and that foster economic growth and socially respond quickly to beneficiary needs. The sustainable development. elimination of processing bottlenecks and Making the Most of Our constraints could facilitate social Multidisciplinary Culture initiatives; and operations will need to be more flexible to address emerging Despite their shared interests in poverty challenges. reduction, social development, and the social underpinnings and political economy of To support operational work, our ESW development, the Bank's economists and and CASs clearly need to better reflect the noneconomist social scientists have seldom social underpinnings and political economy bridged the professional divide that separates of development. Increasingly ESW will need them. to go beyond technical issues to identify the stakeholders and vested interests that inform · Many of the Bank's noneconomist social the dialogue and public debate about key scientists work primarily on social policy issues such as privatization and adjustment and social development issues. Yet, with operations. the exception of poverty related initiatives, very few of the Bank's economists address Building Our Knowledge Base these issues systematically. We also need to learn more, and quickly, · Nor has the Bank been able to capture the about areas where less is known. potentially large synergies in country Specifically, these include the following: analysis between economists and · Our knowledge of the social relationships noneconomist social scientists--for that underpin economic behavior and example, in tracing the impact of policy institutions is too limited. changes on economic actors, and on social conditions and in turn on the political · We need to understand the rationale and sustainability of the policy itself. modalities for building the relationships, capacity, and institutions that constitute This needs to change, so that we can social capital. bring our complementary skills to the development effort. 19 Social Development and Results on the Ground Working in Partnership But some apparent constraints (lending to governments, large loans) are also the Integrating social concerns more fully into Bank's main strengths. No other the Bank's activities should proceed from an development institution delivers resources on objective assessment of the Bank's the scale of the World Bank, and with some comparative advantage. Some of the more exceptions, few have the influence of the traditional "social" activities are more suited Bank with its Borrowers. The Bank can help for implementation by bilateral agencies, scale-up models and approaches developed NGOs, or private foundations that have the by NGOs and donors; and its policies can experience, skills, and resources to provide influence governments, public agencies, and staff-intensive, experimental, or small-scale private companies and foundations. The activities. The Bank needs to recognize its Bank also has a significant opportunity to limitations and play to its strengths. improve the quality of life for people, by Box 7. New Partners in Development In 1993, at the invitation of the World Bank, indigenous leaders from countries throughout Latin America and the Caribbean met to discuss the development needs of their people. Their message to the Bank was clear: The 40 million indigenous peoples of the region were poor in income and access to services, but rich in organizational and cultural resources. The indigenous leaders asked for assistance to formulate more effectively their own development strategies, to build capacity needed to articulate those strategies in their countries, and to improve their negotiating skills in order to secure their fair share of development investments. Bank staff responded by organizing a series of missions to help indigenous organizations apply for grants from the Institutional Development Fund (IDF). The activities proposed in each country were distinct, reflecting the differing social, economic, and political contexts, but all centered on strengthening social capital among indigenous organizations. Grants were made to pay the costs of workshops drawing together indigenous leaders. Each workshop had an "action agenda" to articulate the development desires of the indigenous people themselves, and each culminated with meetings with government officials to discuss the results. Subsequent IDF grants to indigenous groups in Bolivia, Chile, Colombia, Costa Rica, Ecuador, Guatemala, Mexico, and Nicaragua in 1994­ 96 have produced important results. In Mexico, for example, the indigenous peoples concentrated upon the forest resources of their lands (75 percent of Mexico's forests are on indigenous lands), building upon successful sustainable forest exploitation in several communities in the state of Michoacan. They presented their plan to expand the Michoacan approach to indigenous forest areas throughout the country in a final working session with government, which requested preparation of a loan to implement the program. The project is about to be appraised. In Ecuador, the indigenous peoples overcame serious internal differences through the series of meetings fostered by the Bank and by the government agency responsible for indigenous affairs. The result was a formal request from the government to prepare, jointly with local leaders, an indigenous development project. The preparation process is being led by an indigenous executive director, selected by the indigenous organizations and by a committee where government and indigenous organizations are equally represented. 20 Taking Stock improving the quality of preparation and agencies to local level institutions, to craft our implementation of its portfolio. development strategies and programs. The fundamental concept is partnership. But the Bank cannot do it alone. Despite its financial resources and influence, Recognizing the diversity of its countries it cannot make development happen either and rapid pace of change, the Bank is giving on its own or simply in alliance with increased emphasis to strengthening resident governments. Neither the Bank nor missions and putting into the field people governments alone can solve the complicated who can listen, learn, and collaborate with problems of development; people must be those who know more than we do about active partners in finding suitable and local issues and constraints. But to be sustainable solutions. For this reason, we successful, the Bank will also need to make its must make an attitudinal shift in thinking instruments more flexible and more amenable about our capacities. We must find solutions to partnerships, and to improve the that enable us to work with partners, from incentives for staff to collaborate. senior government officials and donor 21 Social Development and Results on the Ground 2. Recommendations T he challenges described in this report colleagues the Bank's growing recognition make it clear that the World Bank of the importance of social factors in could better achieve its objectives by poverty reduction and sustainable systematically integrating the social development and what we intend to do dimensions of development into its work. about it. The Task Group's recommendations for doing so recognize that we have much to · Getting Results on the Ground. We should learn about how social factors shape draw more on social analysis and development and the mechanisms for participatory techniques in the design and addressing them. As a result, we often call implementation of programs and projects. for pilot projects to test promising We should also make the project cycle innovations that draw upon the social more flexible and introduce new lending dimension of development. But where we instruments where appropriate. have reasonable evidence based on · Using What We Know Strategically. We experience we recommend moving forward should bring social analysis and an quickly and mainstreaming proven understanding of the social context to bear initiatives. We also realize that this is an strategically on the design of programs of ongoing process; we therefore include a assistance to client countries. specific recommendation for managing future efforts. In total, the package of · Learning More. We need to invest more recommendations reflects the Task Group's time and effort in understanding the view that social factors are a central aspect of mechanisms, benefits, and costs of development and that incorporating them incorporating social factors into our work, into the Bank's work is crucial to helping and the role of these factors in people, especially the poor, to improve their development more generally. lives. · Getting from Here to There. We should put The recommendations for addressing in place mechanisms to ensure that the these issues are organized in five sections, staff skill mix and financial resources starting with areas where we can move most necessary to the challenge are provided. rapidly and have immediate impact, and progressing toward areas where learning will Setting the Agenda yield a long-term payoff: The approach we propose--moving ahead · Setting the Agenda. We should rapidly where we have the knowledge to do communicate to our clients and our so while systematically learning more--is 22 Recommendations logical and prudent. That said, the · Governments cannot go it alone, however, accelerated and continuing effort that this and productive partnerships between the report recommends should be clearly state, the market, and society will be understood. It is therefore appropriate to needed to foster development. communicate to Bank staff, to our partners in development, and to the broader The statement should also describe how development community that the Bank the Bank intends to integrate social factors intends to incorporate social concerns more into its lending and nonlending services, as systematically into its work and make social recommended below--specifically, by analysis an integral part of its tool kit. incorporating social analysis into our projects and country strategies and by expanding our The Task Group therefore recommends efforts to learn more about the social that Bank management state clearly to dimensions of development. internal and external audiences the importance it attaches to an integrated Appropriate vehicles for this statement approach to development that embraces include broad distribution of this report or social concerns. The statement should similar documents; incorporation of the explain why the Bank regards social factors report's key points into a major speech by the as a crucial aspect of development. It should President; and high-level meetings with reflect our conviction that: practitioners, NGOs, and academics. · People are the reason for development; Getting Results on the Ground and how people are affected is the measure by which development initiatives The Bank's evolutionary, piecemeal approach should be judged. to integrating social factors into development · People are the means of development; if has generated much knowledge and they do not understand or are not experience. But application has been committed to development initiatives, such haphazard. This section recommends that programs cannot work no matter how we move quickly to use systematically what well they are planned. we already know to improve results on the ground. Specifically, it recommends the · Fair and equitable development broader use of three approaches: contributes to human welfare, and to the incorporating participation and social social cohesion and social stability that analysis into project preparation; using the underpin sustainable development. project cycle flexibly; and adapting lending, learning, and other instruments as needed to · In a world of increasing specialization and support these initiatives. interdependence, new kinds of relationships, organizations, and Incorporating Social Analysis institutions will be needed if people are to into Projects benefit, and if growth and development are to be sustained. We have seen that social analysis can · Governments have a crucial role in improve projects in several ways. Social shaping social policy and providing an assessment (SA), the Bank's primary tool for enabling environment for poverty project-level social analysis, can help the reduction and socially sustainable Bank and its clients understand the project's development. social context; define the social goals of the 23 Social Development and Results on the Ground project; identify stakeholders and provide the appropriate to the type of project and the framework for their participation in project country and groups concerned. The Task selection, design and implementation; and Group has therefore suggested guidelines to identify circumstances when Bank social assist task managers in deciding when SAs policies (for example, Indigenous Peoples and are required (box 8). Using this guidance, Involuntary Resettlement) would apply. A each region should be asked to indicate how variety of instruments, most of which utilize it intends to expand the use of SA in the next participatory techniques, have also proven two or three fiscal years and to identify those their worth. Described in the Participation projects for which SAs will be undertaken. Sourcebook, these include: workshop and community-based collaborative To aid implementation, the Task Group decisionmaking, beneficiary assessment, and also recommends that a systematic effort be systematic client consultation, among others. started to tailor social assessments, consultation, and participatory processes to The Task Group concluded that there is particular country contexts to disseminate sufficient evidence of the value of SA and appropriate and tested methods and to train associated techniques to urge that they be staff in using them. To this end, we more widely used and that economists as recommend that a sourcebook on methods well as other social scientists be more fully and procedures be prepared as soon as involved in implementing them. possible. This sourcebook should be based on Nevertheless, while the need to understand a review of best practice in the Bank (as in social factors is common to all projects, there the Poverty Handbook) and should be linked is no fixed methodology. Specific techniques to the development of new indicators of should be selected and adapted as success in Bank projects. Box 8. Using Social Assessments Social assessments are more important in some projects than in others. Judging from experience to date, three project classifications are suggested: Environmentally and Socially Risky Projects. Large dams and other infrastructure projects, projects or programs affecting asset distribution (such as land reform or privatization), structural adjustment lending and other programs and projects that have complex and broad social impacts; projects rated A in their Environmental Assessment because of social risks or impacts; projects involving resettlement, indigenous peoples, or ethnic minorities; and projects in post- conflict countries. Formal SAs should be mainstreamed for such projects. Projects With a Significant Social Dimension. Operations that depend for their success on changes in the behavior of individuals, groups, and institutions; projects that involve beneficiary participation or that require community contributions (in cash or in kind) for their success; most natural resource management projects, social investment funds, and rural poverty alleviation programs; and all targeted interventions. Social assessment using one of a variety of tools and methods should be undertaken for such projects, unless the reason for not doing so can be explained. Other Projects. While most projects benefit from an understanding of their social context, the value added of social assessments will be limited in projects such as upgrading telecommunication facilities or improving financial and accounting procedures. Social assessments need not be included in these projects. 24 Recommendations A More Flexible Project Cycle The existing project cycle is already being used flexibly in a growing number of Bank The Bank's standard project cycle, as projects, and the results are good. The Task described by Warren Baum in 1978, has Group therefore recommends that flexible use served the development community well. of the project cycle be more widely employed, Grounded in engineering, this paradigm-- and that changes to facilitate flexible use be with its orderly progression from identified and adopted. Where constraints identification to preparation, appraisal, are identified, appropriate steps should be approval, implementation, and evaluation-- taken to address them. has instilled a professional approach to public investment. It is well suited to Instruments to Support a More Flexible infrastructure development in stable Project Cycle economies with well-established institutions and predictable government policies. Many of the Bank's existing instruments can be readily adapted to support a more flexible However, a growing share of the Bank's project cycle. In some cases, however, lending takes place in complex and uncertain innovative instruments may be required to environments that defeat long-term plans support capacity building, pilot projects, and and centralized management. For example, partnerships with NGOs. Three approaches accelerating disbursements can undermine with merit are noted below; others may also capacity building and reduce ownership and be developed. sustainability. High processing costs create incentives to devise large projects, which First, arrangements are needed that provide little scope for experimentation and permit open-ended lending and are based on learning by doing. Evaluations show that specific objectives and on a strategy prepared poorly performing Bank projects often suffer by the government outlining a long-term from inadequate beneficiary participation policy and investment agenda. Development and Borrower commitment, poor assessment Agreements, for example, can establish a and management of risks, lack of framework for such lending and permit the implementation capacity, and failure to government and the Bank to develop the adjust to changes in a timely way. processes, systems, and skills needed to implement such a strategy. Funds are To overcome such problems, Bank staff replenished when specified performance have experimented with ways to make the benchmarks are met. Development existing project cycle more flexible. Such Agreements have already been used in South initiatives center on the Borrower and Asia to provide small amounts of financial beneficiary rather than the Bank's and technical assistance over an extended requirements; incorporate capacity building period. Such agreements are well suited to and participation; and provide for explicit, fostering a participatory, and institution- prudent management of risks. Because such building process, and enable the Bank and approaches incorporate capacity building as the Borrower to better cope with unforeseen part of the project preparation process, they events by providing for flexibility within reduce the time and resources spent before preset credit limits. Long-term funding also initiating action on the ground. This first avoids the problem of a lag between projects stage is generally followed by a pilot project, that leaves important tasks half-finished. an evaluation, and a joint Bank-Borrower decision as to the next stage, which could be Second, new funding mechanisms are a demonstration project or a full-scale needed to foster piloting and innovation. program to mainstream the intervention. Piloting an innovative project, evaluating the 25 Social Development and Results on the Ground outcome, and sharing the results with the Using What We Know Strategically development community at large is an international public good--the costs are The above measures for improving the borne by the implementing country, while impact of our efforts on the ground are the benefits are enjoyed by all. There is, important but far from sufficient. For social therefore, a powerful argument for an factors to be more fully integrated into our international institution such as the World work, it is crucial that social analysis and Bank to subsidize such activities. Existing participatory techniques be incorporated into mechanisms that have been used for this the formulation of the Bank's development purpose are cumbersome. A more flexible strategies and policy advice. The primary instrument, to facilitate project piloting, with vehicle for such a change is the Country liberal processing and procurement Assistance Strategy (CAS). procedures and grant elements that encourage piloting and innovation, should be The Task Group identified two ways for considered in the context of ongoing work on the CAS to better incorporate social concerns. new instruments. First, the content of the CAS should be improved by drawing upon social analysis Third, Bank grants directly to NGOs, where this seems likely to improve the community based organizations, and other strategy and, ultimately, the development civil society organizations could prove to be impact of the Bank's assistance and advice. an efficient way to build capacity, pilot new Second, the process should be improved by initiatives, and reduce poverty among the increasing the degree of consultation and poor not reached by government programs. participation by stakeholders. This section Such grants could include Bank monitoring describes these two related elements of an to assess impact and determine if replication improved CAS and outlines how they can be would be cost-effective. To this end, the Task more systematically incorporated into our Group recommends that a suitable funding work. mechanism be identified for this purpose, such as the proposed Civil Society Fund. To Incorporating Social Analysis into the CAS be effective, funding procedures would need Much has been done in recent years to to be flexible, quick, and user-friendly. The strengthen the CAS by articulating country- duration of grants should be intentionally specific objectives more clearly and by linking short, and grants would be oriented toward objectives to instruments more systematically. the attainment of monitorable outcomes. But the typical CAS still gives little attention The Task Group concluded that each of to the historical, social, and political forces these innovations has merit and that that shape the feasibility and outcomes of mechanisms should be explored to promote programs and projects. Addressing this their more widespread use in the Bank. It is problem involves two steps: recommended that the Social Learning · First, the analytic instruments and Group (see below) take the lead in research that are the building blocks of elaborating these proposals further as part of CAS should incorporate social analysis. the ongoing work on Bank instruments. To do so, task managers must refocus and Since both the latter two proposals would sometimes modify such instruments as provide grants, funding arrangements should country portfolio performance reviews, be considered in the context of efforts to economic and sector work, national establish an umbrella Development Fund in environmental action plans, private sector the Bank. assessments, poverty assessments, and 26 Recommendations public expenditure reviews. In general, dynamics of development. Second, even multidisciplinary teams will be required to where the resulting document is sound, the bring to bear the knowledge and expertise government and the Bank may have of economists and other social scientists. difficulty implementing it because of a lack of · Second, the CAS itself should discuss key public understanding of the goals being social issues and the institutional and pursued or the tradeoffs involved in reaching governance situation, and the ways in them. In either case, a CAS that satisfies the which these are likely to affect Bank and the government may fail as a tool development outcomes; these concerns for improving the lives of poor people in the should be reflected in investments and borrowing country. policy work. Specific issues and solutions To help overcome these problems, Bank will vary from country to country. Box 9 staff have begun to experiment with a more describes the nature of the concerns to be participatory approach to CAS preparation. addressed. This new approach includes dialogues with A More Participatory CAS Preparation business, labor, voluntary and other Process nongovernmental groups (some of which have been facilitated by EDI), the preparation CASs are typically the result of consultations of private sector strategies in consultation between Bank staff and senior government with the International Finance Corporation officials. There are two problems with such (IFC), and consultations with donors and an approach. First, where the views of other other multilateral development organizations groups are not sought, the strategy may working in the country. Burkina Faso and proceed from an incomplete or even false Vietnam CASs, for example, incorporated a understanding of key issues and the social wide range of stakeholder views. Box 9. The Social Content of the CAS It is important that Bank operations be feasible in their social, institutional, and political context in order to ensure that their goals can be realized. Therefore, answers to the following questions should be available to planners and, where feasible, should be included in the CAS: · What are the social and cultural characteristics of the poor? Where are they located? What special features contribute to their poverty (for instance, inequities in land distribution, gender or age, race or ethnicity, refugee status)? What is the government's attitude toward and commitment to poverty reduction? · What important changes are occurring within and between social groups? What impact will Bank operations have on these changes and on distribution of assets and power? What are the potential sources of conflict? How can Bank operations minimize adverse social impacts and avoid exacerbating conflict? · What are the key features of public sector institutions in terms of their decentralization and interest in or support for participatory processes? What capacity exists in the public and private sectors and in the civil society? How do these compare across sectors and with other countries at similar levels of development? How can Bank projects and policies use or strengthen this capacity? Such information must be grounded in country knowledge, and its use must be tailored to country acceptance and conditions. Social profiles, as freestanding documents, can be used to distill important information for later inclusion in the CAS. 27 Social Development and Results on the Ground A participatory approach to the CAS disseminate best practice, and to identify the can work only when the government fully skills that the Bank must acquire in order to supports such an initiative. Even in such a carry out this work. situation, however, the confidential nature of the CAS itself may inhibit a participatory As part of its mandate, the Social approach to its preparation. Restrictions on Learning Group, discussed below, should the release of the CAS should not be monitor the pilots, assess the benefits and discarded lightly: the Bank and the Borrower costs of innovations, and recommend for will continue to need a document that mainstreaming those that have proven to be frankly discusses the challenges of effective. As we learn more, relevant development. Given the value added of the guidelines should be revised, including those efforts in Burkina Faso, Haiti, and Vietnam, covering economic and sector work, to the Task Force recommends that country mainstream these new approaches. teams include participatory approaches It is impossible to predict how Bank whenever these seem worthwhile and are assistance would change as a result of endorsed by the government. incorporating social factors more fully into Piloting Social Analysis and the CAS. Indeed, to do so would run counter Participation in the CAS to a participatory approach. It can be anticipated, however, that the improved CAS The Task Group welcomed Bank staff efforts would result in policy reforms programs and to incorporate social analysis and projects that are better tailored to specific participatory approaches into the CAS and country, social, and institutional conditions recommends that Bank management and that lending and nonlending services encourage and support such efforts. The would reflect these changes. Moreover, it is Task Group concluded, however, that this reasonable to expect a continued shift toward grassroots and piecemeal approach is not projects that strengthen state, market, and sufficient. Fully incorporating social analysis civil society institutions. and participatory techniques into the CAS would require significant changes in the Learning More Bank's work processes and skill mix. Moreover, we have much to learn about the To underpin our efforts to incorporate social tools and techniques necessary for such an dimensions into projects and development approach, as well as the balance of benefits strategies, we need to systematically draw and costs. For these reasons, the Task Group lessons from our hands-on experience in recommends that these initiatives be piloted incorporating the social factors of in each region. development into our work. We also need to strengthen the analytical and empirical Specifically, the Task Group recommends foundations that underpin the application of that each of the Bank's operational vice social analysis and participatory techniques. presidencies be asked to undertake two or The Task Group recommends two initiatives three pilot CASs during FY97/FY98. These to address these needs: creating a Bank-wide documents would analyze country-specific Social Learning Group (SLG) and re-orienting economic, environmental, and social relations analytical work. in an integrated fashion, use participatory techniques, and propose a program of Creating a Social Learning Group lending and nonlending services derived from this approach. These pilots would Integrating social concerns into Bank provide a mechanism to discover and operational work and into our development 28 Recommendations strategies is an ongoing process. Thus, dimension of development more fully into several recommendations in this report Bank work. require further analysis or more specific design before implementation. In addition, · Advising on the need for revisions to Bank systematic monitoring of the Bank's work on policies to ensure that social issues are the social dimensions of development will be dealt with appropriately. necessary to maintain momentum, assess · Monitoring and assisting with pilot CASs. progress, and ensure that the process remains on track. The Task Group therefore · Guiding the re-orientation of analytical recommends the establishment of a work, including ESW and the broader Bankwide Social Learning Group (SLG) to research program, and preparing an guide, assist, and monitor the initiatives outline for a WDR on social factors in suggested above. development. The SLG is proposed as an advisory and · Assessing the changes in the skill mix and leadership group. It should be headed by a the costs of implementing the senior manager and should include staff with recommendations. diverse professional backgrounds drawn These and other aspects of the Bank's from each of the new networks in the Bank. efforts to more fully integrate social factors Staff would serve on the SLG in addition to into its work, in particular the status of current responsibilities. The SLG would implementation and the lessons learned, oversee implementation of this report's should be summarized in a progress report to recommendations over a finite period of be prepared by the SLG within a year, and perhaps three years. After that the group periodically thereafter. would be dissolved and any remaining responsibilities would be assumed by one or Re-Orienting Analytical Work more networks or professional associations. During its existence, the SLG would work This report has argued that the need for closely with the Bank-NGO committee to better social analysis stems from the nature of ensure NGO involvement in monitoring the development itself. Economic behavior and Bank's implementation of the initiatives processes do not occur in a vacuum, they are recommended in this report. embedded within cultures and institutions-- the social capital--that affect their direction, While development of the SLG's agenda pace, and outcomes. Yet our knowledge of would await its constitution, the Task Group the social relationships that underpin suggests the following areas of responsibility cultures and institutions is limited. based upon recommendations in this report: Substantial work is already underway within · Coordinating internal and external the Bank on a broad array of social issues: dissemination of information about the participation, decentralization, Bank's plans and actions to incorporate intrahousehold resource allocation, the social factors more fully into its work. determinants of fertility, female education, social security arrangements, and others. · Monitoring increased use of social analysis Even so, these and other concerns are often and guiding preparation of a social not adequately reflected in the two main assessment sourcebook. areas of our analytical work: ESW and the broader research agenda. · Proposing additional instruments to support a more flexible project cycle and The Task Group recommends a to incorporate other aspects of the social Bankwide effort to further integrate social 29 Social Development and Results on the Ground analysis into ESW, whether it is carried out time and effort devoted to understanding as part of a CAS or in other contexts. social factors in development. Effective Bank assistance to its member countries requires ESW that provides a basis · Second, DEC should initiate two or three for knowledge about the country's core new projects with a strong social focus, to development potentials and constraints, both be pursued through an interdisciplinary at the national level and in each sector. ESW approach. Box 10 describes one possible guidelines should therefore indicate the topic, by way of illustration. noneconomic social variables that are · Third, the 1999 World Development essential to preparing policy advice and Report should address social factors in designing successful targeted interventions, development. As an input to the decision in addition to the economic and technical about the WDR topic, the SLG should variables that are already included. prepare a WDR outline covering the role Recognizing that these variables are different of social factors in the formulation and depending on the country and the sector, the implementation of policy and in the design Task Group recommends that the SLG work and execution of projects. with OPR to review ESW guidelines and revise them as necessary to help Bank staff · Fourth, the Bank should expand efforts to incorporate social analysis into ESW. foster socioeconomic research in partnership with academic institutions, The Task Group also recommends that think tanks, and NGOs. the social dimensions of development be fully integrated into the Bank's research program. In this regard, it identified three broad Box 10. New Measures of Progress thematic areas for additional work. One Building on the President's statement that comprises the social, institutional, and "we must measure progress not only in GDP cultural factors that influence policy per capita but in social and environmental formulation and implementation, and the benefit per capita," this study would attempt impact of these factors on development to assemble a meaningful set of indicators outcomes. Another involves the changing that go beyond currently available measures. roles of state, market, and civil society, and The Bank's current indictors do not easily the implications of these changes for Bank incorporate many of the social dimensions of strategies. Finally, additional work should be development addressed in this report. When done on the social impact of Bank-supported people, and their relationships and interventions. Running through these topics institutions, are viewed as both the means and ends of development, progress must be is the need to develop a better understanding measured in qualitative as well as of the role of social capital in development. quantitative terms, and over the short term as Within these broad themes, the Task well as the long term. It must be assessed according to criteria on which different Group did not attempt to identify specific people and institutions can agree. Potentially topics for additional research. Instead, it relevant social indicators may relate to levels recommends four steps to speed integration of violence, crime, and personal security; to of social analysis into the research program: levels of trust and social capital; and to the distribution of wealth. Because aggregated · First, Development Economic Committee data at the country level obscure information (DEC) should survey existing and planned necessary to improve the impact of our research and, acting on this inventory, assistance, measures should be compiled as undertake specific steps to increase the needed at subcountry regional and local levels. 30 Recommendations Getting from Here to There For this reason, the Task Group welcomes the recent appointment of NGO and social The recommendations set forth above will analysis specialists in many of the resident require changes in the skill mix of Bank staff missions, especially in Africa and Latin and an appropriate commitment of financial America. Because these contacts provide a resources. This section describes the Task means for enhancing country learning, Group's suggestions for assessing and facilitating piloting of new ideas, and meeting these needs. engaging in dialogue with civil society, the Adapting and Strengthening the Skill Base Task Group recommends the appointment of such specialists in larger resident missions The number of Bank social specialists has where this is acceptable to governments. In increased slowly over the last three years, but support of this effort, the Economic it remains too small to meet the challenges Development Institute should also devote described in this report. While work on additional resources to training developing social issues is not confined to social country nationals, particularly in approaches specialists, it is significant that there are and tools for participation and social currently only about 100 such specialists assessment. throughout the institution. About a quarter of these work in the Environmentally While specialist skills are important, it is Sustainable Development Vice Presidency also essential that the social dimension of (ESD), another 15 percent work in the Asia policies and projects be regarded by the Technical Department (AST); thus just two entire Bank staff as an essential part of the divisions account for about 40 percent of the Bank's daily work. Therefore, getting the Bank's social specialists. Moreover, half of skill mix right is not only a question of the Bank's social specialists are long-term staffing. It is also one of changing values and consultants, and 70 percent have been in the attitudes, and the recommendations Bank for less than three years, making them presented have implications for the Bank's more vulnerable to budget cuts than other training programs. The Bank will need to types of staff. increase its internal training and retraining programs to sensitize its economic and The Task Group anticipates that the technical professionals to social issues. It will demand for such specialists from the regions, also need to encourage such training through DEC, and the thematic vice presidencies will appropriate incentives, targeted, in increase as other recommendations in this particular, to managers. report are put into effect. The Task Group recommends two measures that respond to Much of this training can be conducted this demand. The first focuses on stepped up at headquarters. However, the Task Group efforts to recruit and retain high-caliber social recommends that consideration also be given specialists. The second involves training to on-site "experiential" training in field current Bank staff in other fields in the social settings for staff. Such training should take dimensions of development. Resources from place on the ground, in villages, areas of the Strategic Compact are expected to cover cultural or ethnic distinctiveness, these initiatives. concentrations of urban poverty--in short, where the problems and opportunities really While most of our recommendations lie. The Task Group recommends that the about staffing involve headquarters, it is very Learning and Leadership Center launch a important that people with the necessary pilot program in FY97. The Task Group also skills be in place in the countries we serve. recommends that consideration be given to 31 Social Development and Results on the Ground the reverse flow, bringing NGO staff with are implemented, great care will be needed in experience on how to achieve results on the monitoring incremental costs, assessing ground into the Bank to share their tradeoffs, weighing priorities against knowledge and insights with Bank staff. anticipated expenditures, and generally conducting a rigorous quest for cost- How Much Will This Cost? effectiveness. As part of its responsibilities, Although a full costing of the proposed the Social Learning Group should take a program is not feasible at this time (some of considered and careful look at the actual the proposals have not yet been tried) the costs involved. Task Group has attempted to provide an indication of costs for the main elements of A Summary of Recommendations the proposal for FY97/FY98. The Task Group seeks the endorsement of the · Extending the Use of Social Assessments. President and senior management for the Costs of SAs vary widely depending on following recommendations related to the who does them, scale, and formality. SAs Bank's own work. vary from $10,000 to more than $100,000. If we assume a formal SA for a socially · The Bank should make clear its intention sensitive project costs $75,000, and if the to incorporate social concerns into its coverage of projects increases from its activities. The President's Annual current level of about 10 percent to 25 Meetings speech on October 1, 1996, was percent for FY97, and 50 percent for FY98 an important step in this direction. and thereafter, the additional cost is on the · A proposal should be prepared for a 1999 order of $7.5 million per year. WDR on social development. · Piloting Country Assistance Strategies. · Social analysis should be incorporated into Assuming that CASs are typically projects through social assessment (SA) or supported by two pieces of ESW, each of other instruments, as appropriate; and a which costs about $300,000, and assuming sourcebook should be prepared that that incorporating more social analysis indicates when an SA is needed and how into these studies increases costs by 20 it should be carried out. percent, the proposed pilots would cost about $2 million over two years. · During FY97/FY98 all regions should present to the management and the Board · Expanding the Research Program. Costs of two or three Country Assistance Strategies research studies vary substantially; for that provide a full treatment of social present purposes an average figure of issues. $250,000 is reasonable. For three studies and the expansion of social content in · Concrete steps should be taken to reorient ongoing work, this amounts to $1 million. analytical work and ensure that economic and sector work and the broader research Under the Strategic Compact, regions program give greater coverage to social will obtain about $9 million per year for factors. social development, which should be adequate to jump-start these initiatives. · The project cycle should be used more flexibly, making full use of piloting, social The costs and benefits of the Task analysis, and participatory approaches; Group's recommendations are obviously constraints to flexibility should be subject to a degree of uncertainty. As they identified and addressed. 32 Recommendations · Recent innovations in adapting lending NGO liaison staff or social specialists as instruments (such as long-term appropriate. development agreements) should be examined in the context of broader work · Every effort should be made to meet these on new instruments. objectives in a budget-neutral fashion through reallocation of the existing · New funding mechanisms to facilitate administrative budget, even though this piloting and to support civil society will be difficult. development activities should be incorporated into the proposed Bankwide · The Bank should establish a Development Fund. multidisciplinary Social Learning Group (SLG) to follow up on the · The Bank should be ready to respond to recommendations of this report and to the anticipated increase in demand for monitor implementation. This group social specialists, and current Bank staff should prepare a progress report after one should receive additional training to year. enable them to better incorporate social concerns into their work. · Actions taken since this report was written have been incorporated into the executive · Capacity should also be strengthened in summary. resident missions by the appointment of Action Matrix Timing Recommendation Next Steps Responsibility Oct. 1996 Social Learning Group Establish SLG Managing Directors FIAHS Provide annual budget Managing Directors End 1996 External statement Prepare material for SLG major speech More flexible use of Mainstreaming Regions project cycle New lending instruments Prepare proposals SLG in collaboration with others Participation and social Prepare plans indicating Regions assessments priorities Pilot CAS Select countries Regions Training Prepare training programs SLG/LLC/EDI End FY97 Social assessments Best practice guidelines OPR/ENV Analytical work New research proposals DEC Outline for 1999 WDR SLG End 1997 First progress report First draft by October 1997 SLG End FY98 Pilot CAS Complete pilots Regions Social assessment Sourcebook ESD 33 Social Development and Results on the Ground Notes 1. Assistance Strategies to Reduce Poverty, 1992. 11. Poverty, Adjustment and Growth, January 1994, Department I, Middle East and North Africa Region. 2. Poverty Reduction and the World Bank: Progress and Challenges in the 1990s, 1996. 12. Poverty Reduction and The World Bank: Progress and Challenges in the 1990s, p. 2. 3. M. Cernea, Putting People First, Oxford University Press, 1995. 13. Resettlement and Development: The Bankwide Review of Projects Involving Involuntary Resettlement 4. L. Salmen, Listen to the People: Participant 1986­1993, World Bank, 1996. Observation Evaluation of Development Projects, 1987, and L. Salmen, Beneficiary Assessment: An Approach 14. D. Narayan, The Contribution of People's Described, 1992. Participation--Evidence from 121 Rural Water Supply Projects, World Bank, 1995. 5. Report of the Bankwide Learning Group on Participatory Development, 1994, and The World Bank 15. W. Partridge, People's Participation in Participation Sourcebook, 1996. Environmental Assessments in Latin America, World Bank,1994. 6. Environment Department Dissemination Papers, Social Assessment, No. 36, World Bank, September 1995. 16. Public Involvement in GEF-Financed Projects, Global Environment Facility Secretariat, Washington, DC 7. J. Coleman, Foundations of Social Theory, 1996. 1990, and R. Putnam, Making Democracy Work: Civic Traditions in Modern Italy, 1993. 17. World Development Report 1994, pp. 73­74. 8. NGOs and the Bank: Incorporating FY95 18. Environment Department Dissemination Notes, Progress Report on Cooperation Between the World Social Assessment Structured Learning: Preliminary Bank and NGOs, Poverty and Social Policy Department, Findings, 1995. 1996. 19. Russia: Coal Sector Restructuring Social 9. I. F. I. Shihata, The World Bank in a Changing Assessment, 1996. World: Selected Essays, 1991. See especially Chapter 2. 20. World Bank, FY96 CAS Retrospective, 1996. 10. L.Adamolekum and C. Bryant, Governance 21. QAG/PSD, Review of Public Enterprise Reform Progress Report: The Africa Region Experience, 1994. and Privatization Operations, World Bank, 1996. See also M. Dia, A Governance Approach to Civil 22. World Bank, Bureaucrats in Business, Oxford Service Reform in Sub-Saharan Africa, 1993. University Press, 1995. 34 Notes 23. Annual Report on Portfolio Performance, 26. Working with NGOs: A Practical Guide to FY94, Volume III, World Bank, 1995. Operational Collaboration Between the World Bank and Non-Governmental Organizations, OPR, 1995. 24. OED, Evaluation Results 1993, World Bank, 1995. 27. H. Binswanger, "Decentralization, Fiscal Systems and Rural Development," Agriculture Depart- 25. Proposal for Establishing a Consultative ment,1996. Group to Assist the Poorest (CGAP): A Micro-Finance Program, 1995. 35 Appendix 1--Letter from Management The World Bank Washington, D.C. 20433 U.S.A. Gautam S. Kaji Managing Director March 1, 1996 To: All Operational Managers SOCIAL DEVELOPMENTAND RESULTS ON THE GROUND During the fifty years in which the World Bank has been in existence, the development paradigm has been evolving from an almost exclusive focus on bricks-and-mortar and physical capital to a people- centered approach to sustainable development that recognizes that human and social capital are critical factors. With this evolution, the building of "social infrastructure" has increasingly eclipsed the building of physical infrastructure as the central challenge of development. The Bank's work reflects this evolution in a variety of ways. Human resources development has grown from a fringe Bank activity to one of our largest sectors. Poverty reduction is now clearly the overarching objective of all our activities. Environmental issues are now central to our Country Assistance Strategies. Bank operational experience attests to the importance of the social dimensions of development in project design. Without proper analysis of social conditions and consultation in determining priorities, the services provided by a project may not be the ones that the ultimate beneficiaries find the most useful, or that they will help sustain by contributing to critical operations and maintenance requirements. Failure to take into account how implementing institutions actually work and how communities will participate is a common cause of failure of Bank-supported projects. Adequately considering the social dimensions of development is even more important at the policy level. Political economy considerations that take into account who is likely to gain (and who will lose) are critical to the policy change process. The timing and design of policy changes are critical factors in their sustainability. Neglecting such concerns can worsen implementation problems down the road even if the proposed policies can be accepted at the outset. 36 Appendix 1 Against this background, we have decided that we need to take a considered look at the various initiatives and approaches that are underway within the Bank in the social development areas so that more systematic use can be made of best practice concepts and findings. To this end, we have asked Javed Burki to head a Task Group drawing on participants across Bank units and to report back to us by the end of April. Task Group members are: Michael Cernea, Gloria Davis, Hansjorg Elshorst, Scott Guggenheim, Michael Horowitz, Ishrat Husain, Maritta Koch-Weser, William Partridge, Dan Ritchie, Lyn Squire, Maurice Strong, and Shahid Yusuf. We have asked the Group to address five specific topics: Paradigm: How can social concerns be effectively absorbed into the development paradigm and used for policy making purposes? What kind of additional work is needed to develop and disseminate the tools of social analysis and beneficiary participation? · Operationalization: Notwithstanding the possible need for further work on the paradigm and for re- search, what can we do now to extend and deepen the use within the Bank of social policy instruments with proven track records? · Clients: How do our clients feel about these issues? How can we take their concerns into account? · Partners: What are our partners doing on these issues? How can we take their concerns into account? · Staff: How can we sensitize and train staff in the critical areas? What level of training is needed? By whom? How should it be provided? We believe that getting a better handle on the various dimensions of social capital and policy is a very important challenge, with considerable potential for helping the Bank to improve the effectiveness of its policy advise and project work., we urge you to give the Task Group your full support. cc: Executive Committee 37 Appendix 2--List of Members of the Task Group on Social Development Shahid Javed Burki (Chair) Vice President, LAC Michael Cernea Senior Advisor, ENVDR Gloria Davis Chief, ENVSP Hansjorg Elshorst Senior Advisor, PADSS Scott Guggenheim Senior Social Scientist, EA3OP Ishrat Husain Director, PSP Maritta Koch-Weser Chief, ASTEN William Partridge Chief, LATEN Lyn Squire Director, PRD Maurice Strong Senior Advisor to the President, EXC Shahid Yusuf Lead Economist, AF2DR 38 Appendix 3--List of Satellite Group Members Group 1: Social Foundations of Development Francis, Ayse Kudat, Kathryn McPhail, Lant Hatsuya Azumi (Chair), Gordon Appleby, Pritchett, Martin Ravallion, Gurushri Swamy. Michael Cernea, Nat Colletta, Anis Dani, Paula Donnelly-Roark, Ashraf Ghani, Peter Harrold, Group 7: Gaps in Social Analysis and Planning Alberto Harth, Maria C. Mejia, William Partridge, Ellen Schaengold (Chair), Lynn Bennett, Michael Stan Peabody, Sudhir Shetty, Roberto Zagha. Cernea, Scott Guggenheim, Maria Donoso Clark, Kathy Krumm, Shelton Davis, Cyprian Fisiy, Group 2: Social Analysis and Resource Daniel Gross, Rohil Hafeez, Nancy Katz. Mobilization David Dollar (Chair), Cyprian Fisiy, Valerie Kozel, Group 8: Social Dimensions of Key Lars Soeftestad, Jorge Uquillas. Bank Policies Cynthia Cook (Chair), Marylou Bradley, Tim Group 3: Social Sustainability through Campbell, Paul Francis, Junko Funahashi, Ashraf Institutional Effectiveness Ghani, Margaret Grieco, Scott Guggenheim, Philip Hans Juergen Gruss (Chair), Dan Aronson, Ed Hazelton, Ayse Kudat, Dominique Lallement, Kye Campos, Sanjay Dhar, Mamadou Dia, Estanislao Woo Lee, Josette Murphy, Ian Newport, Alfredo Gacitua-Mario, Elizabeth Morris-Hughes, Alberto Sfeir-Younis, David Wheeler, Warren Van Ninio, Mike Stevens, Mateen Thobani. Wicklin, Willem Zijp. Group 4: Social Capital and Social Development Group 9: Instruments and Retooling the Bank Andrew Steer (Chair), Anthony Bebbington, for Social and Economic Development Maria Donoso Clark, Gloria Davis, Paul Francis, Robert Picciotto (Chair), Joanne Salop, Charlotte Jonathan Fox, Christiaan Grootaert, Philip Keefer, Jones-Carroll, Marianne Haug, Maritta Koch- Deepa Narayan, Mancur Olson, Chris Bartlett. Weser, Caroline Robb, Heinz Unger, Shawki Barghouti, Richard Skolnik, Michael Cernea, Group 5: Partnerships and Participation Kenneth Lay, Jacques van der Gaag, Aubrey Roger Sullivan (Chair), Akihiko Nishio, Aubrey Williams, Mohan Gopal, Miguel Schloss. Williams, Claude Salem, Deepa Narayan, David Howarth, Jim Edgerton, Juergen Voegele, Group 10: Public Expenditure Reviews Jonathan Brown, Madalena Dos Santos, Steen Shanta Devarajan (Chair), Michael Bamberger, Jorgensen, Sunita Gandhi, Thomas Blinkhorn, Michael Cernea, Ashraf Ghani, Jeffrey Hammer, Debra Sequeira, Tosca van Vijfeijken. Desmond McCarthy, Sanjay Pradhan, Richard Skolnik. Group 6: Social Assessment in the World Bank Emmanuel Jimenez (Chair), Shelton Davis, Paul 39