93950 STATE- AND PEACE-BUILDING FUND ANNUAL REPORT 2012 For more information on the work of State- and Peace-building Fund, please contact: The State- and Peace-building Fund (SPF) Global Center on Conflict, Security, and Development (CCSD) Washington, D.C. Operations Policy and Country Services (OPCS) The World Bank 1818 H Street, NW Washington, D.C, 20433 USA Nairobi 2nd Floor, Shelter Afrique House Longonot Road, Upper Hill P. O. Box 30577-00100 Nairobi, Kenya Telephone: +1 202 458-0352 E-mail: spf@worldbank.org Web address: www.worldbank.org/fragilityandconflict ABBREVIATIONS AND ACRONYMS AFR Africa Region CCSD Global Center on Conflict, Security and Development EAP East Asia and Pacific Region ECA Europe and Central Asia Region FAO Food and Agriculture Organization FY Fiscal year GDP Gross domestic product IBRD International Bank for Reconstruction and Development IDA International Development Association LAC Latin America and the Caribbean Region LICUS Low Income Countries Under Stress (Trust Fund) MENA Middle East and North Africa Region MTR Mid-term review NGO Nongovernmental organization PCF Post-Conflict Fund SAR South Asia Region SPF State- and Peace-Building Fund WDR World Development Report ST AT E- AN D P EAC E- B U I L D I N G FU N D AN N U AL R EP O R T  CONTENTS FISC AL YEAR 2012 REFACE 2 P By Joel Hellman, Director, Global Center on Conflict, Security, and Development ART I. OVERVIEW OF THE STATE- AND PEACE-BUILDING FUND (SPF) P 5 The evolution of fragility- and conflict-focused trust funds within the World Bank 10 Defining features of the SPF 10 How the SPF is governed and managed 11 How grant making works 12 What is supported, and where ART II. FISCAL YEAR 2012 PROGRAM HIGHLIGHTS P 14 The FY12 SPF engagement strategy 16 Revision of the SPF-Level Results Framework 17 The SPF mid-term review 18 Learning and knowledge sharing ART III. STAND-ALONE PROJECTS P 20 Somalia: Drought management and livelihood recovery 22 Guinea-Bissau: Technical assistance to extractive industries 24 Liberia: Civil-service reform, capacity building, access to justice and accountability 26 Libya: Transition assistance 27 West Bank and Gaza: Water supply and sanitation in West Bethlehem villages 29 Jordan, Lebanon: Mitigating the impact of population displacement from Syria PART IV. STRATEGIC INITIATIVES hat constitutes a SPF strategic initiative? 30 W 31 Central America: Citizen security in the northern triangle 33 Eastern Europe and Central Asia: Regional initiative on fragility and conflict 36 PART V: FINANCIAL SUMMARY IL L U ST RAT ION S A N D   A N N E X 6 FIGURE 1: Grant Amounts Approved for PCF, LICUS, and SPF, 1998–2012 (Cumulative) 8-9 MAP 1: PCF, LICUS, and SPF Trust Fund Grants to Fragile and Conflict-affected Countries, 1998–2012 11 FIGURE 2: SPF Grants by Recipient or Implementation Type, Fiscal Year 2009–12 12 FIGURE 3: Results Objectives among State-building Projects (Percent) 12 FIGURE 4: Results Objectives among Peace-building Projects (Percent) 13 FIGURE 5: SPF Funding Commitments by Bank Region, Fiscal Year 2009–12 (Percentage of total) 16 FIGURE 6: Revised SPF Results Framework 18 FIGURE 7: MTR Areas of Inquiry 36 TABLE 1: SPF Donors (as of June 30, 2012) 36 TABLE 2: Project Disbursements by Year (as of June 30, 2012) 37 FIGURE 1: SPF Commitments by Region and FY (US $ Millions as of June 30, 2012) 37 FIGURE 2: Regional Composition of SPF Portfolio, FY09 Versus FY12 (percent of total SPF Commitments, as of June 30, 2012) 37 TABLE 3: SPF Commitments by Recipient Type, Through FY12 (US$ Millions, as of June 30, 2012) 38 ANNEX 1: Description of Approved Projects/Strategy Initiatives 1 preface T he overarching goal of the the world, and an innovative regional strategy to test and extend measures that mitigate fragility and State- and Peace-building Fund conflict in the Caucasus and Central Asia. Strategic initiatives, described in Part 4 of the report, are (SPF) is to address the needs of packages of SPF assistance to support “conflict- and fragility-sensitive” strategies aligned with WDR state and local governance by findings. These initiatives expand the SPF’s support supporting measures to improve governance, beyond one-off stand-alone projects and encourage greater impact and catalytic value of SPF invest- institutional performance, reconstruction, and ments. Strategic initiatives draw upon the core strengths of the SPF: flexibility, partnership, and development in countries emerging from, in, innovation. In addition to strategic initiatives, the SPF sup- or at risk of sliding into crisis or arrears. ports projects that address the challenges of fragil- Established in FY09, the SPF is the World ity and create a foothold for wider development involvement. The SPF is unique in that it finances Bank’s only global multi-donor trust fund to projects in countries that are in arrears, such as Somalia, Sudan, and Zimbabwe, enabling the World support projects that contribute to prevention Bank to remain engaged and assist in transitions toward recovery and re-engagement. and recovery from conflict and fragility. With Currently, more than 40 World Bank operations its support to recipient-executed activities, the are actively contributing to state-building; a selec- tion of these stand-alone projects are illustrated in SPF has become an important entry point for Part 3. The SPF in 2012 also performed important work in peace-building. The rehabilitation of water early and catalytic financing for peace-building and sanitation systems in five West Bank villages may seem like a small step; however the SPF grant and state-building. takes on greater significance because it also repre- sents an instance where cooperative planning and recognition of shared interest have guided a process of positive change. As a share of overall World Bank support to In addition to strategic initiatives and new fragile and conflict-affected countries, the SPF stand-alone grantmaking, FY2012 was a productive represents a small program. Yet as this report illus- year in other respects. The year began by revising trates, SPF grants are beginning to respond to the the SPF Engagement Strategy in response to the challenge posed in the 2011 World Development challenges posed by the 2011 WDR. That was fol- Report: Conflict, Security and Development (2011 lowed by revisions to the SPF’s Results Framework, WDR)—how to encourage development progress in which is used to guide fund-level performance. The countries impacted by conflict and fragility. conceptual changes were then matched with practi- There is a distinction between grants that are cal changes to the process of soliciting, developing, “merely” innovative, timely, and responsive, and and approving proposals. The SPF also launched an those that aim at transformative change. That dis- in-depth mid-term review of its program to both tinction is highlighted in newly proposed strategic reflect on progress to date and ensure the SPF is initiatives that the SPF authorized for funding this “fit for purpose” moving forward. past year. These initiatives include an “integrated Beyond the implications of the WDR, the SPF has approach” to scaling up citizen security in Central a role to play in the implementation of the New Deal America, ranked as the most violent subregion in for Engagement in Fragile States. The New Deal is 2 essentially designed to place more emphasis on country leadership and ownership of the transition out of fragility and identifies peace-building and state-building goals as the reference for guiding work in fragile and conflict-affected states. The World Bank is committed to support implementa- tion of the New Deal, and the SPF is viewed as a natural vehicle for support and potential funding of projects under the New Deal at the country level. The SPF will also continue to foster partnerships between development, security, humanitarian and justice actors, and with nongovernmental institu- tions, through integrated project approaches. The SPF has been working closely with other interna- tional trust fund partners focused on conflict and fragility, including with the UN Peace-building Fund, on countries of shared interest. Moving forward, findings and recommendations from the mid-term review (released in Fall, 2012) will inform the SPF’s strategic and operational approach. With a robust evidence base, the mid- term review aims to set a renewed direction for the SPF, thus ensuring that the SPF reaches its full potential as the World Bank’s pre-eminent global multi-donor trust fund addressing conflict and fragility. Joel Hellman Director, Global Center on Conflict, Security, and Development (CCSD) Chair, SPF Committee October 2012 SPF ANNUAL REPORT 2012 3 PART I: OVERVIEW OF THE STATE- AND PEACE-BUILDING FUND The State- and Peace-Building Fund was created in 2008 to consolidate and advance the World Bank’s overview of the state- and peace-building fund strategic approach to conflict and fragility. The SPF operates at the intersection of development, conflict prevention, post-conflict reconstruction, and peace-building within the World Bank’s legal and policy framework. The State- and Peace-Building Fund (SPF), a multi- THE SPF HAS TWO OBJECTIVES: donor trust fund managed by the World Bank, makes grants that build resilience to conflict and strengthen To support measures to improve governance and governance in countries impacted by fragility and conflict. institutional performance in countries emerging Financing from the SPF is available to all Bank member from, in, or at risk of sliding into crisis or arrears. countries, IBRD- and IDA-eligible countries, as well as countries in arrears. To support the reconstruction and development of The SPF’s overarching goal is to address the needs of countries prone to, in, or emerging from conflict. state and local governance and peace-building in fragile situations and areas that are prone to, or affected by, conflict. STATE-BUILDING seeks to strength- en, build, or rebuild institutions of governance that are capable of pro- viding citizens with such functions as transparent and accountable manage- ment of public finances, investment in human capital and social development, rule of law, basic services and infra- structure, and an enabling environ- ment for market development. PEACE-BUILDING seeks to develop conditions, values, and behaviors that foster and sustain social and eco- thailand nomic development that is peaceful, stable, and sustainable. Peace-building includes the broad spectrum of recon- struction, including recovery and re- integration of conflict-affected popu- lations and increased social cohesion; use of gender-sensitive approaches and response to vulnerable groups; and the management of external stresses, including cross-border violence. 4 THE EVOLUTION OF FCS TRUST FUNDS Trust Fund. The vast majority of the grants focused on WITHIN THE WORLD BANK public sector institutional capacity and policy reforms to facilitate socially inclusive economic growth. Where countries have been in arrears, LICUS Trust Fund grants The SPF builds upon two predecessor trust overview of the state- and peace-building fund have been important to put basic reforms in place, pave funds within the World Bank—the Post- the way for arrears clearance, and establish a track Conflict Fund (1997–2011) and the Low-Income record for subsequent access to IDA financing and debt relief. The LICUS Trust Fund primarily supported country Countries Under Stress Trust Fund packages, or in other words “more intensive programs of (2004–2011). transitional support,” consisting of a number of discrete projects. Within the World Bank, the evolution of trust funds In 2007/2008 an internal World Bank study was com- which focus or prioritize support to fragile and conflict- missioned to evaluate the objectives, focus, and achieve- affected situations (FCS)1, began with the creation of the ments of the two existing FCS trust funds, duplication Post-Conflict Fund in 1997 under the Development Grant of gaps in coverage, the pros and cons of consolidation, Facility. The Post-Conflict Fund was designed to facilitate opportunities for streamlining, and the efficiency of the the Bank’s upstream work on post-conflict initiatives funding replenishment process. As a result it was pro- and to support innovative operational approaches that posed that the State-building and Peace-building Fund responded to the needs of countries affected by or emerg- be established. ing from conflict. The SPF would replace the Post-Conflict Fund and In 1999, it was clear that a different arrangement the LICUS Trust Fund, consolidate the Bank’s strategic was necessary to facilitate greater flexibility in the use approach to conflict and fragility, and streamline related of funds and to allow for donor contributions, so subse- processes and procedures. The SPF was designed to quently the Post-Conflict Fund (PCF) became a trust fund. address the needs of state and local governance and The mandate of the PCF was to “support countries in peace-building in fragile and conflict-prone and conflict- transition from conflict to sustainable peace and econom- affected situations that offer the promise of high impact, ic growth.” The initial focus on rehabilitation in the after- through measures to improve governance and insti- math of war was quickly broadened. The Post-Conflict tutional performance and through reconstruction and Fund pushed boundaries through its emphasis on learning development activities. and innovation. Between 1998 and 2011, the PCF made some 200 grants, totaling approximately US$112 million. These grants created a substantial legacy of accumulated knowledge and new approaches. Valuable experience was also gained in working with other international agencies, national and international NGOs, and public sector partners. The LICUS (Low Income Countries Under Stress) Trust Fund was established in 2004 to assist low-income countries, particularly those in non-accrual and with the most severe conflict and institutional problems, to imple- ment the reforms necessary for re-engagement with the international community and address urgent social need such as HIV/AIDS through a coordinated multi-donor approach. The establishment of the LICUS Trust Fund was haiti linked closely to growing attention and concern from the World Bank and the broader donor community regarding aid effectiveness in countries with weak policies and low institutional capacity. Between 2004 and 2011, 100 grants totaling approxi- mately US$92 million were approved under the LICUS SPF SPFANNUAL ANNUALREPORT REPORT2012 2012 5 Like its predecessors, the newly created SPF was given a mandate that embraced learning and innovation, governmental and nongovernmental partnerships, and timeliness in response to emergencies. During the first two years of its operation, the SPF developed its approach through active grant-making while simultaneously man- aging the Post-Conflict Fund and LICUS portfolios. The SPF built upon the achievements of the two trust funds in such areas as sequencing and scaling up Bank engage- ment; enabling cross-cutting, innovative approaches to the difficult challenges of development in fragile and conflict-affected environments; and fostering strategic partnerships for greater impact. A Bank commitment of US$100 million provided support for three initial years of operations. Bilateral donors subsequently contributed an addi- tional US$30.5 million, including US$14 million from The Netherlands, US$5.4 million from Denmark, US$4.3 mil- lion from Australia, US$3.3 million from Norway, US$2.9 million from Sweden, and US$0.5 million from Germany. FIGURE 1: AMOUNT APPROVED FOR PCF, LICUS, AND SPF, FY98-12 (CUMULATIVE) $160 PCF LICUS SPF PCF LICUS SPF FY98-FY09 FY04-FY09 FY09-FY12 $140 $112 million $94 million $135 million 209 Grants 96 Grants 55 Grants $135 $120 Approvals ($US Millions) $112 $100 $107 $93 $94 $96 $80 $83 $82 $73 $60 $67 $61 $63 $63 $51 $48 $40 $39 $35 $20 $25 $20 $14 $0 $4 $3 FY 98 FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 6 somalia SPF ANNUAL REPORT 2012 7 PCF, LICUS, AND SPF TRUST FUND GRANTS TO FRAGILE AND CONFLICT-AFFECTED COUNTRIES—1998 TO 2012 THE MIDDL E E A S T , E U R A S IA A N D A S IA RUSSIAN FEDERATION 1 1 KAZAKHSTAN GEORGIA 11 2 UZBEKISTAN KYRGYZ 1 REPUBLIC ARM AZERBAIJAN 1 NORTH KOREA TURKEY 1 1 TURKMENISTAN TAJIKISTAN 5 1 SOUTH KOREA CHINA LEBANON SYRIA 3 3 1 IRAQ AFGHANISTAN WEST BANK 10 3 IRAN 8 GAZA JORDAN 5 1 2 PAKISTAN NEPAL ISRAEL 2 BHUTAN SAUDI ARABIA INDIA BANGLADESH BURMA LAOS THAILAND 1 2 PHILIPPINES CAMBODIA 8 3 3 2 VIETNAM SRI LANKA 11 MALAYSIA BRUNEI SOLOMON ISLANDS 4 INDONESIA INDONESIA PAPUA PCF LICUS SPF 4 NEW GUINEA KEY EAST TIMOR 1 NUMBER OF GRANTS SHOWN IN BOXES 11 1 EUROPE CROATIA 3 BOS & HER 3 7 1 MONT KOSOVO 11 2 ALB MAC 3 2 TUNISIA 1 MOROCCO ALGERIA LIBYA 1 EGYPT WESTERN SAHARA THE BAHAMAS MAURITANIA SUDAN CUBA MALI NIGER 6 3 1 DOMINICAN REPUBLIC JAMAICA HAITI SENEGAL CHAD ERITREA 1 GUATEMALA BELIZE 2 9 2 THE GAMBIA 1 2 1 HONDURAS BURKINA 1 GUINEA BISSAU FASO DJIBOUTI EL SALVADOR 3 5 GUINEA BENIN NIGERIA NICARAGUA GHANA 1 SIERRA LEONE COTE 3 1 CENTRAL COSTA RICA D’IVOIRE TOGO ETHIOPIA 3 AFRICAN REPUBLIC SOUTH SUDAN LIBERIA 7 7 3 12 1 PANAMA VENEZUELA 3 21 1 1 GUYANA 2 15 3 CAMEROON UGANDA SOMALIA COLOMBIA SURINAME FRENCH GUIANA 1 KENYA 5 8 5 3 1 GABON DEMOCRATIC REPUBLIC REP. OF OF THE CONGO RWANDA 1 ECUADOR THE CONGO BURUNDI 5 1 4 12 1 1 TANZANIA PERU COMOROS BRAZIL 3 3 ANGOLA MALAWI ZAMBIA MOZAMBIQUE MADAGASCAR BOLIVIA ZIMBABWE 1 NAMIBIA 9 2 PARAGUAY BOTSWANA CHILE SWAZILAND SOUTH AFRICA LESOTHO 3 URUGUAY ARGENTINA LA TIN AM E RICA AN D AFRICA DEFINING FEATURES OF THE SPF HOW THE SPF IS GOVERNED AND MANAGED The SPF has grown to occupy a distinct position within the World Bank. The defining features embedded in its The SPF Committee serves as the governance struc- overview of the state- and peace-building fund mandate—emphasis on innovation and learning, latitude ture for the fund, including responsibility for overall in implementation partners, the ability to act quickly— strategic guidance and final grant decision approval. The have contributed to this distinction for several reasons: Committee meets regularly to review projects and provide The SPF works in countries and in ways where strategic direction. Its members are director-level staff rep- the rest of the World Bank is necessarily more resenting the Bank’s sectors and regions. The Committee constrained. This includes grant-making in coun- chair is also the director of the Global Center on Conflict, tries that are in arrears and non-members of the Security, and Development (CCSD). The chair is appointed World Bank. This latitude is strategically important by the Operations Policy and Country Services (OPCS) Vice because it enables the Bank to maintain its engage- Presidency within the World Bank as set forth in the Bank ment and stay positioned as circumstances unfold. Board paper that established the SPF. In many situations, this creates “points of entry,” for The SPF Secretariat operates from within the example, where IDA might wish to resume activities or build a new program but has a limited in-country World Bank’s Global Center on Conflict, Security, and foundation upon which to start. Development, with staff in Washington D.C. and Nairobi, Strategically the SPF can assist to mobilize sig- Kenya. The Secretariat manages day-to-day operations, nificant action outside the World Bank, includ- which includes support to task teams that are preparing ing at the global development level through projects, processing grants, monitoring and evaluating quick catalytic support in the aftermath of natural the grant portfolio, promoting knowledge exchange and disasters or humanitarian emergencies that have learning, addressing implementation bottlenecks, drafting significant consequences. strategy papers, and managing calls for proposals. The The timeliness of SPF grants, rather than their Secretariat also benefits from the larger pool of CCSD short-term focus, can sometimes be the basis staff who can provide technical and operational support for long-term results. Transition processes seldom to SPF projects. conform to the normal timetables of development funders; and because windows of opportunity are often quite narrow, the importance of SPF grants is often closely related to the timing of the process. SPF responsiveness under such circumstances is illustrated by the three projects (discussed in Part 3) that were financed during a year of upheaval and transition in the Middle East and North Africa. The SPF plays a very important role in the Bank’s and the international community’s efforts to address the challenges of fragility. In many fragile and conflict-affected situations, it is the only avenue through which the Bank can provide funding. The projects it supports directly address some of the most intractable problems that FCS face and, at the same time, provide a rich source of lessons for future Bank operations. In addition, the SPF creates an enabling environment for the coordination among relevant partners, including the UN and multilateral and bilateral agencies that is so critical to the success of work in FCS. 10 HOW GRANT MAKING WORKS when normal relations resume. As shown in Figure 2, the most frequent implementa- WHO IS ELIGIBLE? tion arrangement is grants to government entities. This is followed closely by grants to national and international overview of the state- and peace-building fund Financing is available to all Bank member countries NGOs (including relief agencies, specialized technical (IBRD and IDA-eligible countries, as well as countries assistance providers, and local civil society). in arrears). Assistance from the SPF is also available In very exceptional circumstances, the Bank may con- to non-members on a case-by-case basis. To ensure sider executing activities on behalf of the grant recipient. selectivity, however, priority is given to countries with The Bank executes projects on behalf of the recipient (or one or more of the following characteristics: specialized components within projects) when host govern- arrears to IBRD and/or IDA; ments request such support, or where the Bank itself has “fragile state/situation,” defined by a CPIA rating a particular comparative advantage. This generally occurs of 3.2 or lower (reflecting poor governance) or the where effective government is not yet established, or where presence of a UN or regional peacekeeping or politi- national authorities lack necessary technical capacity—for cal mission; example, economic modeling of policy alternatives, train- current violent conflict and/or violent conflict within ing of trainers, or implementation of a modern land survey. the past 10 years; These situations are almost always viewed as a transitional insufficient IDA grant allocations during a transition process. They are typically accompanied by training and process when needs are high; and/or capacity-building components, so that necessary skill sets deteriorating situations, including an escalating risk are incorporated at the project level. of falling into arrears or violent conflict. Requests for funding are received from World Bank GRANT SELECTION AND COMPETITION task teams. Grants are allocated to government coun- terparts, including regional or municipal government The criteria for grant selection are published with the and public sector entities outside the executive branch, SPF’s call for proposals. Concept notes for individual proj- international organizations such as the UN agencies, ects or expressions of interest for strategy initiatives are international or national NGOs, or universities or research reviewed and shortlisted. If a project/strategy initiative organizations. is selected to move to the full proposal stage, it is peer The latitude in eligibility is significant, because this reviewed by country specialists, thematic experts, and the opens access to categories of recipients who would SPF Secretariat prior to submission to the SPF Committee normally be ineligible through other Bank channels. This for approval. SPF grants are subject to the same legal, includes non-members of the World Bank (for example, technical, and fiscal due diligence as all other Bank trust the West Bank–Gaza); countries in arrears to the Bank fund projects. (such as Somalia, Myanmar, or Zimbabwe). This flexibility allows the Bank to stay engaged with such countries and often provides a point of entry or strategic continuity FIGURE 2: SPF GRANTS BY RECIPIENT OR IMPLEMENTATION TYPE, FISCAL YEAR 2009–12 $60 Commitment Amount $50 ($US Millions) $40 $30 $20 $10 $0 Government NGO World United Contribution University/ entity Bank- Nations to World Bank Research Executed Multi-Donor Institution Trust SPF ANNUAL REPORT 2012 11 WHAT IS SUPPORTED, AND WHERE cent). This is followed by ‘improved policy-formulation capacity’ (39 percent); ‘more efficient, transparent, ACTIVITIES and accountable use of public resources’ (35 percent); ‘increased demand-side governance’ (26 percent); and overview of the state- and peace-building fund Grants have been split relatively evenly over the years ‘increased access to justice’ (9 percent). between the SPF’s dual objectives of state-building and Grants that contribute to peace-building results (Figure peace-building. Just under half (47 percent) are focused 4) typically aim at short-term job creation for unemployed on governance and institutional performance (state- youth, recovery or reintegration of conflict-affected popu- building). A slightly larger share (53 percent) is focused on lations, gender-sensitive approaches, and support for reconstruction and development (peace-building). peace and transition agreements. In humanitarian crises Figure 3 shows the number of projects that are or natural disasters, these grants often provide basic contributing to state-building results as articulated assistance through programs such as cash-for-work. As in the revised SPF Fund-level results framework. shown in the figure, the most frequent objectives of Grants with state-building objectives typically assist these grants are to ’increase job opportunities and private government authorities with service delivery improve- sector development for at-risk populations’ (33 percent). ments, community-driven development, public finan- This is followed by ‘recovery or (re)integration of conflict- cial management, and access to justice. They promote affected populations and increased social cohesion’ (30 demand-side governance and general strengthening percent); ‘gender sensitivity in transforming institutions of civil society. As shown in the figure, the category and managing stresses’ (20 percent); ‘resilience to man- accounting for the largest number of these grants age external stress’ (13 percent); and ‘successful peace is ‘improved capacity to deliver services’ (52 per- and transition agreements’ (2 percent). FIGURE 3. RESULTS OBJECTIVES AMONG STATE-BUILDING PROJECTS (percent) SPF FUND LEVEL OBJECTIVES: STATE-BUILDING 60% 52% 50% 39% % of Portfolio 40% 35% 30% 26% 20% 9% 10% 0% OBJECTIVE 2.5 OBJECTIVE 2.3 OBJECTIVE 2.1 OBJECTIVE 2.4 OBJECTIVE 2.2 Improved capacity Improved More efficient, Increase in Increased access to deliver services capacity of policy transparent, demand-side to justice formulation accountable governance use of public resources FIGURE 4. RESULTS OBJECTIVES AMONG PEACE-BUILDING PROJECTS (percent) SPF FUND LEVEL OBJECTIVES: PEACE-BUILDING 40% 33% 30% % of Portfolio 30% 20% 20% 13% 10% 2% 0% OBJECTIVE 3.1 OBJECTIVE 3.3 OBJECTIVE 3.4 OBJECTIVE 3.5 OBJECTIVE 3.2 Job opportunities & Recovery or Gender sensitivity in Resilience buillt to Successful peace private sector (re-) integration of transforming institutions manage external and transition development for conflict-affected and managing stress agreements at-risk populations population, stress social cohesion 12 WHERE THE SPF WORKS FIGURE 5. SPF FUNDING COMMITMENTS BY BANK REGION, FISCAL 2009-12 (percentage of total) As shown in Figure 5, the Africa Region accounted for just under half of SPF grant commitments between East Asia & Pacific overview of the state- and peace-building fund 2009 and 2012, amounting to about US$55.5 million. The 10% Middle East & Eastern Europe & North Africa concentration reflects several factors—the large number Central Asia 22% of FCS countries in Africa and the continuity from the 8% Post-Conflict Fund/LICUS portfolio. At the same time, demand has increased from other Latin America & Caribbean South Asia 3% regions. By the close of fiscal 2012, the Middle East and 10% North African Region accounted for about 22 percent of the portfolio. The Latin American and Caribbean region and the East Asian and Pacific Region each accounted for approximately 10 percent of the portfolio, while the Eastern Europe and Central Asian Region accounted for Africa 47% 8 percent. Demand from these other regions continues to grow. Note: AFR (Africa Region), LCR (Latin America and the Caribbean Region), MENA (Middle East and North Africa Region), EAP (East Asia and Pacific Region), ECA (Europe and Central Asia Region, SAR (South Asia Region) SPF SPFANNUAL ANNUALREPORT REPORT2012 2012 13 PART II: FISCAL YEAR 2012 PROGRAM HIGHLIGHTS FY2012 marked the midpoint of the SPF’s first phase of operations. An overarching challenge shaping the year’s work was how to respond to the landmark 2011 World Development Report: fis c a l y e a r 2012 p r o g r a m h i g h l i g h t s Conflict, Security, and Development. PROGRAM HIGHLIGHTS INCLUDED THE FOLLOWING: Revision of the SPF-level results framework A mid-term review of the SPF Learning and knowledge sharing activities Continued support for stand-alone projects (Part 3) A new grant-making mode—strategic initiatives (Part 4) THE FY12 SPF ENGAGEMENT STRATEGY “Twenty-first century conflict and violence are a development problem that does not fit the 20th century mold.” This observation in the 2011 World Development Report challenges the international community to approach this problem by thinking and responding in new ways. The SPF began its work in FY2012 with a question: how can the SPF’s FY12 Engagement Strategy best align with the findings and recommendations of the 2011 WDR? Four areas emerged as a concrete response with associated action items: 1 Catalyze transformative country and regional strategies that are aligned with WDR recommendations while continuing to fund stand-alone projects that represent urgent need, rare opportunities, and innovation. The SPF’s Fall 2012 call for proposals announced new support for countries or regions that commit to transformative strategies aligned with the fragility and conflict paradigm articulated in the 2011 WDR. These “strategic initiative” applications sought to move beyond the SPF’s single project approach to promote greater impact of SPF investments. A new mode of grant-making—“packages” of SPF grants alongside broader CCSD and other Bank support for strategy development, partnership, and knowledge and learning activities—was introduced (See Part 4, “Strategic Initiatives”). Stand-alone grant making continued, but “raised the bar” by focusing on projects representing urgent need in response to crises, rare opportunities, and high innovative value (see Part 3, “Stand-alone Grants”). Revitalize the SPF Results Framework, aligning results with WDR recommendations and 2 utilizing the results framework to help in prioritizing grant selection and evaluating the overall impact of the portfolio. All projects/strategic initiatives are now required to identify how their results will contribute to results outlined in the SPF-level results framework. This results framework will ultimately be utilized to better assess impact across the SPF portfolio. 14 3 Bolster the knowledge and learning function for better mainstreaming of SPF approaches to fragile and conflict-affected countries across World Bank operations. fis c a l y e a r 2012 p r o g r a m h i g h l i g h t s Sharpen the focus on research, knowledge, and learning by investing more, designing knowledge components into new projects, and compiling and reporting on results. Leverage learning and knowledge sharing in fragile and conflict-affected countries by linking with ongoing operational work and research assets across the World Bank. Expand SPF learning activities within new knowledge-sharing platforms aimed at fragile and conflict- affected countries, for example, the newly launched “Hive” (an online collaborative site on fragile and conflict-affected situations). 4 Revise the processing and management of grants for efficient alignment with the new engagement strategy. Make use of the formal call for proposals, as well as the procedures for processing ad- hoc rapid response applications, to announce and reinforce new program priorities. Develop application processing guidelines that improve responsiveness to SPF task teams. Provide SPF Secretariat support to prospective applicants in developing grant packages aimed at transformative strategies. SPF SPFANNUAL ANNUALREPORT REPORT2012 2012 15 REVISION OF THE SPF-LEVEL RESULTS The horizontal green bars—Fund-level results—spec- FRAMEWORK ify the six result categories to which the SPF is now broadly accountable: Integral to implementation of the FY12 Engagement support for transformative fragility-sensitive strate- fis c a l y e a r 2012 p r o g r a m h i g h l i g h t s Strategy, the SPF results framework was revised to make gies, priorities more consistent and to better measure and strengthening partnerships, aggregate results across the portfolio. The results frame- piloting of new approaches to risk and results, work was revised based on findings of the 2011 WDR and timely support for early confidence building, alignment with the founding papers that established the catalytic support for institution building, and SPF. As a practical matter, the results framework provides contributions to research, knowledge, and learning a way for the SPF to hold its grantees, and itself, account- that improves World Bank operations. able for performance and results. Result categories at the country (or regional) level are In preparing grant applications, task teams must shown in purple, with state-building and peace-building now articulate how their proposed project or strategic branches. The detailed results framework also provides initiative will contribute to the Fund’s peace- and state- sample indicators associated with each result. building objectives. The results framework also provides Whether for stand-alone projects or for strategic examples of sample indicators that can be used to docu- initiatives, beginning in FY12 all SPF grants must provide ment progress toward results. a rationale that articulates how the intervention will con- The revised results framework is shown in Figure 6. It tribute to results as defined in the revised framework. For can be read and understood as follows: analytical purposes, older SPF projects were “mapped” The blue horizontal bar at the top restates the SPF’s against the revised SPF results framework (See Figures 3 overarching objective—to address the needs of state and 4 in Section 1 for output produced in this analysis). and local governance and peace-building in fragile and conflict-prone and affected situations. FIGURE 6: REVISED SPF RESULTS FRAMEWORK SPF OBJECTIVE: To address the needs of state and local governance and peace-building in fragile and conflict-prone and affected situations FUND-LEVEL RESULTS 1. Transformative 1.2 Partnerships 1.3 New approaches 1.4 Timely support 1.5 Catalytic support 1.6 Contributes fragility-sensitive are to risk and results in provided for early provided for RKL for strategy supported strengthened FCS piloted confidence building institution building improved ops SPF CONTRIBUTIONS TO COUNTRY/REGIONAL-LEVEL RESULTS STATE-BUILDING PEACE-BUILDING 2.1 More effective, transparent 3.3 Recovery and (re-) integration and accountable collection, of conflict-affected populations management and use of public 2.4 Increase in demand-side 3.1 Increased employment governance, including an and increased social cohesion resources opportunities and private active role for civil society sector development that and improved state-society benefits at-risk populations 2.2 Increased access to justice, relations 3.4 Gender-sensitive approaches including capability, utilized in transforming accountability, inclusion in both institutions and managing formal and informal institutions stresses 2.5 Improved capacity to 3.2 Successfully negotiated deliver services to promote and implemented peace and 2.3 Improved capacity for policy confidence building transition agreements 3.5 Resilience built to manage formulation, “inclusive-enough” external stresses, including cross- pacts and strategic border violence, resource shocks, communication trafficking, and organized crime 16 THE SPF MID-TERM REVIEW of the SPF as well as a review of individual projects and implementation. The MTR team has mixed internal/ The SPF committed to the World Bank’s Board of external participants including the SPF Secretariat and Directors and SPF donors to conduct a mid-term review expert consultants in evaluation, Bank operations, and (MTR) at its mid-way point in FY2012. The MTR was a Bank management and strategy. The MTR includes: (i) fis c a l y e a r 2012 p r o g r a m h i g h l i g h t s major focus of the SPF Secretariat over the fiscal year— a comprehensive document review that incorporates results of the MTR will be disseminated in Fall 2012. The strategic documentation, project documentation, studies goal of the SPF MTR is to step back and assess the con- and reviews; (ii) consultations and workshops with rel- tinued relevance of the SPF’s objectives, design, assump- evant stakeholders in the World Bank, donor community, tions and implementation arrangements and to assess non-governmental organizations, government and other progress and draw lessons from SPF performance to date. stakeholders; (iii) triangulation of qualitative findings via Findings and recommendations from the MTR will inform a quantitative analysis of the results of SPF-funded proj- the SPF’s strategic and operational approach moving ects, impact assessments and the review of relevant proj- forward. In order to focus the review, the MTR considered ect documentation. The MTR team also visited 12 projects three areas of inquiry, illustrated in Figure 7: in 7 countries and employed a standardized analytical The MTR employed a mixed method approach to framework to guide consultations and reporting. review the SPF at a strategic and operational level— gathering lessons on the overall design and direction FIGURE 7: MTR AREAS OF INQUIRY • What regions and thematic areas are in highest demand and why? PORTFOLIO REVIEW/ • How are projects performing? 1 CONTRIBUTIONS OF SPF • How are SPF projects contributing to Fund-level results? PROJECTS TO PEACE-BUILDING • Which are the key lessons on project design and implementation? AND STATE-BUILDING • What are the key lessons of successful/ innovative projects? • What have been the key obstacles/bottlenecks to SPF project effectiveness? • What role does SPF financing play within the broader World Bank financing envelope? THE STRATEGIC ROLE OF SPF FINANCE/ CROSS-CUTTING ISSUES 2 • Is the SPF contributing to WB-wide/ international debates on conflict and fragility? • What is the SPF’s role in collecting and disseminating knowledge and learning? In developing/sustaining partnerships? • Is SPF governance providing appropriate strategic direction/effective oversight GOVERNANCE (SPF Committee and SPF Secretariat)? AND MANAGEMENT OF THE SPF 3 • How is the Fund being managed and financed? • How does SPF governance and management need to be adjusted to carry forward reforms required/in support of a well-performing portfolio? MTR COUNTRY VISITS The MTR team conducted country visits to look at ongoing and past SPF projects in Zimbabwe, Central African Republic (CAR), Colombia, Cote d’Ivoire, Liberia, Nepal, and the Philippines. Each visit employ a standard analytic framework and involves consultations with: project teams; implementing partners; World Bank Country Managers and Country team staff; government, donors, partners, and civil society representatives; and project beneficiaries. SPF ANNUAL REPORT 2012 17 LEARNING AND KNOWLEDGE-SHARING strategic initiatives, technical assistance, research, service delivery, governance, and capacity-building. A range of Knowledge and learning initiatives during the fiscal country contexts were also considered, including the year focused on three areas—informing the MTR as it needs of countries in arrears, situations of post-conflict fis c a l y e a r 2012 p r o g r a m h i g h l i g h t s unfolded; continuing to support independent SPF knowl- recovery, and responding to sub-national conflict. edge and learning initiatives; and embedding knowledge components more deeply into initial project designs. CONTINUING TO SUPPORT INDEPENDENT KNOWLEDGE Further developing the SPF’s knowledge and learning AND LEARNING INITIATIVES agenda is a key finding of the SPF mid-term review and will be a core priority for the SPF over the upcoming year. By supporting independent knowledge and learning For FY12, however, SPF’s primary priority as laid out in the activities, the SPF promotes increased understanding of SPF Engagement Strategy was to strengthen learning and project impacts and informs the areas of work in which knowledge sharing among the proximate communities of the SPF engages. The SPF has financed a series of inde- which SPF is a direct participant. pendent knowledge initiatives in thematic areas relevant to conflict and fragility challenges. This support continued INFORMING THE MID-TERM REVIEW in FY12, including for the following: Two impact evaluations of projects that target gen- The MTR served as a backward- and forward-looking der-based violence (GBV) in the Democratic Republic exercise to mark the midway point of the SPF’s first of Congo and Côte d’Ivoire to improve the delivery phase of operations. As part of the MTR, the SPF began of services for women who suffer from this endemic to develop a community of practice—convening work- problem and in turn inform SPF projects that are shops and conducting consultations that engaged the working toward ways to end GBV. SPF Committee and Secretariat, SPF task teams, World Development of a monitoring and evaluation system Bank country team representatives, partners, and external for projects that support youth employment and experts. empowerment in Eastern Europe. A first MTR workshop with field-based SPF task teams A study of livelihood rehabilitation for internally dis- was held in Nairobi, Kenya, on February 20–22, 2012. A placed persons and refugees in situations of return group of task team leaders and implementing partners or displacement. The assessment evaluates relevant shared lessons and early results of their SPF projects and projects in the SPF portfolio, other World Bank built informal ties for ongoing exchanges of information trust-funded projects, and IDA-financed projects to and experience from SPF projects. The meetings served a identify effective livelihood approaches and make useful secondary purpose by linking SPF task teams with recommendations for future interventions. staff and resources at the new Nairobi-based office of A study to assess the unique challenges of develop- the Global Center on Conflict, Security and Development, ment assistance in conflict-affected subnational whose role is to help implement the 2011 WDR, including areas in South and Southeast Asia, and to analyze through hands-on support to country teams working in the relevance and appropriateness of current devel- fragile and conflict-affected situations. Participating task opment responses and practice. While there has teams and implementing partners came to this workshop been a surge in financing to subnational conflict from across the Africa region and from the Philippines. areas, there have been relatively few studies that A mirror MTR workshop was held in Washington, D.C., specifically analyze the unique challenges for donor on April 26, 2012, to gather DC-based SPF task teams. The decision-making processes, aid relevance, and impli- meeting combined project presentations with thematic- cations for such expanded aid to these regions. based exchanges between task teams, country teams, and the SPF Secretariat. As in Nairobi, the workshop included EMBEDDING KNOWLEDGE COMPONENTS INTO THE FABRIC both presentations of lessons from individual SPF projects OF SPF GRANTS and discussion of key areas for potential SPF reform, including on project design, implementation support, and With the SPF’s focus on innovation and piloting, dedi- monitoring and evaluation. A diverse range of SPF proj- cated knowledge and learning and monitoring and evalu- ects were represented including from across the Bank’s ation components have been encouraged in the design Regions as well as various thematic areas—for example, of SPF projects to capture lessons to inform future opera- 18 tions. At the individual project level, 40 percent of all SPF and knowledge-sharing platform will be established. For grants feature learning components. Notable examples the Eastern Europe and Central Asia regional initiative on include conflict mapping in the Philippines, political econ- conflict and fragility, one grant will support development omy analysis in Somalia, assessment of key institutional of a “conflict filter” to take explicit account of conflict- fis c a l y e a r 2012 p r o g r a m h i g h l i g h t s strengths and deficits in Libya, a socioeconomic impact related stress factors in portfolio management and new study of protracted displacement (of Syrians) in Jordan project design. and land reform analysis in Colombia. Under the SPF’s new strategic initiatives, analytic and learning components have been included as part of SPF packages of support to build client and Bank capacity for conflict response. For the Central America strategy initia- tive on urban violence, for example, a regional learning haiti SPF ANNUAL REPORT 2012 19 PART III: S TAND-AL O NE PRO J E CT S Stand-alone projects in FY2012 highlighted state-building in Africa and support to transitions underway in the Middle East and North Africa. stand-alone projects SO MALIA A SPF-supported transition strategy from humanitarian assistance to livelihood recovery. DROUGHT MANAGEMENT AND LIVELIHOOD RECOVERY ine. Across southern Somalia, farmers and herders $4.0 million lost to the drought the crops and animals that are often their sole source of income and primary basis With no effective central government for more for household food security. As a consequence, many than two decades, Somalis have endured chronic Somalis struggled to cope with severely reduced lawlessness that has stretched through three wars. access to food, acute malnutrition, and high morbid- Armed militia groups compete for power in the ity and mortality, and many left their home areas countryside, including a well-armed al-Shabab insur- seeking assistance elsewhere. Refugee camps in gency that attacks civilian populations and controls Kenya and Ethiopia, already host to over 500,000 large areas of the southern and central parts of the refugees, continued to receive up to 2,000 new cases country. a day. Together with ongoing crises in the rest of The Transitional Federal Government that was Somalia, the number of Somalis needing humanitari- created in 2004 continues to struggle for legitimacy. an assistance increased from 2.4 million to 3.7 million Outside agencies are constrained by the absence of since January 2011, out of which 3.2 million people a complementary public counterpart and adequate were in need of immediate lifesaving assistance. public accounting and reporting. Agencies in coun- The SPF in collaboration with GFDRR (Global try are greatly hindered by a security situation that Facility for Disaster Reduction and Recovery, a part- makes it difficult to operate and sustain long-term nership of 41 countries and 8 international organiza- field staff beyond the capital. Logistics were further tions), contributed US$4 million and US$5 million, complicated in November 2011, when al-Shabab respectively, to finance the FY2012 grant. The grant announced a “ban” on 16 aid agencies, including six is significant because it links and addresses short- UN agencies. term, medium-term, and long-term needs. The proj- Peace and reconciliation efforts have been under- way for some time. Progress has been limited and set back by natural disasters. Recognizing the overall lack of progress, representatives from 57 countries and 11 international and regional organizations met in Istanbul in May-June 2012 to discuss further coor- dinated responses to the unmet needs for energy, infrastructure, water, and drought resilience. In July 20, 2011, the United Nations declared that people across the Bakool and Lower Shabelle regions in southern Somalia were experiencing fam- 20 ect was implemented by the Food and Agriculture by women. Four-hundred tons of drought-tolerant Organization (FAO), who had staff on the ground and existing relationship with Somali NGOs. Within three months of the initial SPF-GFDDR grant, an crop seeds and 1,700 metric tons of fertilizers were distributed for agricultural recovery. FAO trainers showed farmers how to plant, thin, and weed the somalia additional $77 million was contributed from other higher-yield varieties. Heavy rains and flash flood- partners. ing along the Juba River further complicated the The Food and Agriculture Organization distrib- delivery of agricultural inputs so that planting was uted about 700 metric tons of maize and sorghum to delayed in some areas. Although yields were lower about 100,000 people in over six months. Emergency than desired, harvests still far exceeded the levels food distribution was linked to a cash-for-work pro- that would have been produced with unimproved gram, which provides help to reclaim land, herds, local varieties. In addition, FAO has procured suf- roads, and water supplies. Distribution targets were ficient vaccines and cold chain equipment. Nearly largely met despite obstacles from local authorities 1.8 million sheep and goats have been vaccinated, and interference from the insurgency. About 30 per- benefitting nearly 50,000 pastoral households. cent of the beneficiaries were households headed SPF ANNUAL REPORT 2012 21 GU IN E A-BIS SAU A SPF grant aims to promote transparent and effective use of future mineral and petroleum wealth—and may help Guinea-Bissau to escape the natural resource curse that often plagues stand-alone projects fragile states. TECHNICAL ASSISTANCE TO EXTRACTIVE INDUSTRIES America. Human rights abuses are routine, especially in $3.2 million the countryside. For the most part, international assis- tance has focused on peacekeeping and humanitarian Following independence in the 1960s, Guinea-Bissau needs rather than longer-term institution building. was ruled as a one-party regime, interrupted by a brutal Guinea-Bissau illustrates the particular dilemma of civil war in 1998–99. Repeated military coups occurred assistance to the poorest and least stable countries—that throughout the next decade. The most recent was in those most caught in repeated cycles of fragility often do 2010, which led to suspension of activities among most not receive sufficient long-term development support; as remaining development donors. a consequence, they become set on a path toward fur- Although Guinea-Bissau is among the world’s poor- ther marginalization rather than recovery. Grant support est countries, development assistance has been limited, from the SPF and its predecessors has been particularly primarily because of persistent political instability. Public important in this context. The SPF has invested in three sector capacity to deliver services is weak, including prior projects in Guinea Bissau targeting public financial widely acknowledged bribery and corruption. Governance management, rural development, and health. has become more problematic with the rising influence of organized drug traffickers who use the country as a transfer hub for shipments to Western Europe and Latin 22 The most recent SPF grant aims at a particularly will be closely watched by development donors as well as important target of opportunity—the extractive industries international investors. sector. Guinea-Bissau has significant, though unproven, In the second component of the grant, the Bank’s reserves of bauxite and phosphate as well as offshore technical team will assist the Government in developing heavy crude oil. Revenues from these resources could its capacity to analyze policy alternatives and respond to substantially improve prospects for social and economic regulatory gaps. The focus will be on short- and medium- well-being. Yet the country must first be committed term interventions that close gaps and strengthen gover- to responsible private sector investment and revenue nance capacity—for example, an environmental impact streams must be managed in the public interest. unit and technical training to manage a modern cadastral The US$3.2 million FY2012 project supports a process survey. of institutional and regulatory reform in the extractive Grant implementation will be carried out by the industries sector. The first phase entails a “scoping Government in the second component. A third, knowl- study”, which will help to locate and assess the extent of edge-building component aims at policy choices and the actual reserves. Technical work will be managed by the reform process. Among issues to be addressed are: Bank in this first phase, with accompanying training to how to maximize local employment opportuni- key ministries. All findings will be transparent and fully ties, especially among the extensive population of accessible to the public, potential investors, and civil unemployed young men (who increasingly have society groups. been drawn to the drug trade and illegal European The study methodology is known as an “extractive immigration); industries value-chain assessment.” The chain here rep- how new infrastructure will affect communities and resents linked stages of transition—from competitive the environment; award of exploration and extraction rights, to efficient what tax regimes are most likely to be workable; and regulatory oversight of operations, to optimal collection how revenues can be collected, monitored, and then of taxes and royalties, to sound macroeconomic poli- redistributed for social welfare. cies adapted to volatile pricing of finite resources and Achievement of grant objectives would serve an impor- the need for sustainable socioeconomic development. In tant intermediary purpose. Guinea-Bissau could move effect, the study establishes a roadmap based on past toward membership in the global Extractive Industries experience from many other countries in similar situa- Transparency Initiative (EITI). This would further enhance guinea bissau tions. The adequacy of public sector response to the study eligibility for IDA and IMF support and facilitate expan- and step-by-step follow through on its recommendations sion of well-regulated foreign investment. This would also help Guinea Bissau in ensuring that use of its future natural resource wealth is used to fuel investment and development rather than violence and corruption. SPF SPFANNUAL ANNUALREPORT REPORT2012 2012 23 LI BE RIA Support to Liberia that began with the LICUS Trust Fund has evolved from meeting emergency needs in the aftermath of civil war to gradual but steady state-building. stand-alone projects Liberia made considerable gains between the end of a many public sector services by strengthening capacity at brutal 14-year civil war in 2003 and the democratic elec- the local level beyond the present high concentration of tion of a new President, Ellen Johnson-Sirleaf. Financial civil servants in the capital. The recipient, Liberia’s civil support began with a US$4.7 million LICUS Trust Fund service agency, has underscored the need to make civil package in 2004 that helped to restore core government servants aware that job responsibility, pay scales, and capacities in areas such as public financial management, pensions are defined by transparent job descriptions. procurement, and judicial reform. This paved the way Further grant support will strengthen the capacity of the for a US$25 million IDA contribution and the creation of Liberian Institute of Public Administration (LIPA) to meet the Trust Fund for Liberia (TFLIB). A second package of this need through more and better-targeted training. LICUS-funded projects continued support for public sector strengthening by focusing more narrowly on civil service ACCESS TO JUSTICE AND ACCOUNTABILITIY and justice system reforms. A community development $1.5 million project that emerged from this second package was later scaled up through IDA. The Liberian judicial system requires extensive reform. The SPF continued LICUS-initiated momentum through The urgent need to modernize the justice system, includ- follow-up financing for civil service and justice system ing prevention of judicial corruption, was underscored in reform. In 2009, the focus was broadened with a $2 mil- early 2012. The grant will help train investigative staff lion grant to support land reform. at the Liberia Anti-Corruption Commission on how to Trust fund support during the previous decade verify public asset use by government officials. Prevention was largely shaped by opportunities as they occurred. measures will be implemented, including a transparent However, these ad hoc responses gained focus and trac- system of asset declaration. This financing is comple- tion, and they attracted new resources with the passage mented through additional support for improving the of time. Today the World Bank manages over 60 ongoing formal justice system from UNDP, the U.S. Agency for operations in Liberia. The SPF’s two grants in FY2012 are International Development, and German bilateral aid particularly significant because the civil service and jus- programs. Previous support from the LICUS Trust Fund tice systems are areas in need for reforms that have yet to and the SPF for a series of community outreach activities be scaled up through other operations. The strengthening that provided court officials with travel and study oppor- and piloting described below will lay the foundation for tunities to broaden their perspectives are now starting to possible further financing from IDA or other donors. show results. Other countries’ experiences with alterna- tive dispute resolution mechanisms have entered the CIVIL SERVICE REFORM AND CAPACITY BUILDING reform dialogue in Liberia—for example, the potential $2.0 million for formal mediation techniques and greater reliance on traditional leaders. This grant builds on LICUS Trust Fund support that The SPF grants support efforts by the Ministry of began in the immediate aftermath of the civil war. Justice to develop a more holistic approach that inte- Between 2007 and 2011, a range of measures were grates an expanded range of formal and informal justice instituted to support reform in the sector—for example, a options to cope with legal challenges. performance-based civil service salary structure, transpar- ent job descriptions, biometric identification to improve payroll accuracy, a pension study, and functional reviews to measure job performance. These foundational activities are now being extended through support for a second phase of reforms. The current grant addresses the overall civil service reform strategy, including a new plan to decentralize 24 liberia SPF SPF ANNUAL ANNUAL REPORT REPORT 2012 2012 25 LI BYA The SPF promotes successful transition in Libya in partnership with other international donors through a SPF-financed diagnostic assessment and follow-on capacity-building support. stand-alone projects TRANSITION ASSISTANCE The initial diagnostics covered the need for effective $3.0 million and transparent state institutions, economic recovery measures to produce new income streams beyond petro- As fighting brought an end to Muammar Gadhafi’s leum, the urgent need for job creation to reintegrate 40-year rule and the National Transitional Council (NTC) ex-combatants and employ youth, and support for local was established, the World Bank, the United Nations, and governance structures. the European Union worked together to coordinate the In developing its own longer-term strategy, the Bank international assistance response. This included the IMF, weighed factors such as the perceived absorptive capac- Western bilateral donors, and Arab partners. ity of the country, the possibility of demonstrative effects, SPF funding supported the Bank’s early engagement and the need for early confidence building. SPF flexibil- in Libya through a grant for assessment and capacity- ity to engage at the earliest stage of reconstruction was building support, in partnership with other donors. An particularly important. As the review process indicated, initial $0.5 million was used at the outset for a diagnostic “the fact that the Bank has not yet developed its Interim and analytical component in critical areas where reliable Strategy Note for the country makes this grant a key information was lacking. A larger second grant compo- input into the development of a strategy, rather than the nent ($2.5 million) was set aside for follow-up strategic reflection of one.” technical assistance to support the country’s state- and The early SPF work also conferred a particularly peace-building efforts. The project was designed around important benefit for Libyan government counterparts by the need for flexibility. An incrementally expanding advancing necessary dialogue with the international com- knowledge base guided authorities and the Bank in munity about public financial management. Establishing selecting and implementing the targeted technical assis- standards and capacity was a prerequisite for unfreezing tance. libya 26 Libyan funds abroad under UN Security Council Resolution that debate, but they have helped to frame issues and 200, and therefore a national priority. Between January questions as the country moves forward on the path to and the middle of 2012, three related missions on public reconstruction. investment management and internal budgetary controls As decisions are made, the Government will have to were carried out. devise workable plans for implementing changes over a By helping to fill the information void, the grant reasonable time frame. The SPF grant will help to finance helped transitional authorities toward a smoother han- necessary technical inputs. For example, the heavily dover to the National Congress elected in the summer. divided city of Misrata will receive assistance in imple- Conflict analysis, included as part of the assessment, menting a “special economic zone” to promote domestic focused on the need for follow-on assistance that could and foreign investments that will create jobs. Support will help address underlying regional tensions and the pas- be provided to formulate reconciliation, reconstruction, sions aroused by identity politics. The assessment pointed and recovery plans in Benghazi and in Tripoli, engaging out that differing experiences of the conflict, new oppor- diverse stakeholders from the private sector, civil society, tunities for expression, and wildly uneven wealth across and the various political factions. the country have all contributed to a situation that holds In undertaking specific technical assistance subproj- considerable potential for renewal of conflict and reversal ects, World Bank task team leaders have prioritized the of gains. hiring of Libyan consultants and firms that can undertake The diagnostic study also looked at the consequences implementation, helping to ensure proper contextualiza- of the breakdown in state administrative rule. In many tion as well as the longer-term need for capacity building parts of the country, power has been transferred to in technical areas. Funds set aside for technical assistance towns and cities that became self-governing by default will be utilized to respond adaptively to the fluidity of the with the collapse of central authority. Many Libyans environment, election results, and the new windows of champion the idea of decentralization to varying degrees. opportunity likely to develop. The Bank studies do not provide a blueprint for resolving WEST B AN K AND GAZ A A water rehabilitation project in the West Bank demonstrates the possibility of natural resource management even in contentious, mobility-restricted areas. WATER SUPPLY AND SANITATION IN In response to the water and sanitation deficits, WEST BETHLEHEM VILLAGES the mayors of 19 West Bank villages joined together to $3.7 million increase water access and improve wastewater man- agement. They are organized within an inter-municipal More than 25,000 Palestinians living in five villages cooperative structure (termed a JSCPD) that is part of the in the Bethlehem district of the West Bank are subject local Palestinian government. The mayors and the head of to water shortages and deficient wastewater manage- the JSCPD began to work to address the water issues with ment. These communities are located in zones defined as Friends of the Earth Middle East, an environmental NGO “Area C” (controlled and administered by the Israeli Civil with cross-border offices and working relations in both Administration) under the Oslo Peace Accords in 1993. Bethlehem and Tel Aviv. Ties were established between As a result, mobility of the local population is directly Israeli and Palestinian counterparts. This facilitated a restricted, with corresponding impact on economic activ- planning process and dialogue that engaged respective ity and the availability of basic services. Donor invest- parties on the basis of shared concerns. ments have also been limited by the mobility restrictions, Since the West Bank and Gaza is not a World Bank ongoing political tensions, and the chronic risk of conflict. Member, limited support is available in Bank financing. Some funds are committed through the IDA Special Grants SPF ANNUAL REPORT 2012 27 Fund, but these are highly limited in the area of water and installation of the civil works. Finally, six months have sanitation and were already fully committed in the West been allocated for capacity-building and training activi- Bank and Gaza. The SPF, with its flexibility to finance ties related to the strategy and solutions adopted by the projects in a range of country and regional circumstances, initial assessment. stand-alone projects helped to fill gaps in institution-building needs. The project faces implementation challenges that are The SPF approved a three-year pilot project to improve specific to the context—for example, the second phase water delivery and plan wastewater services in five of could be delayed if required permits and access cannot the conflict-affected rural communities. The project will be secured expeditiously through the chain of authorities. be implemented in several steps. First, a feasibility study The SPF’s flexibility and experience with project imple- will be conducted to evaluate and recommend appropri- mentation in conflict-affected situations is important ate wastewater management alternatives and to prepare under such circumstances. engineering designs for infrastructure and effluent reuse. Considered narrowly, the expected outcome of this Second, a fully costed project plan will be prepared. project is relatively modest: upgrading the sewerage Third, a contract will be extended for replacing the pipe pipes of four villages, building new reservoirs for two networks of four villages and constructing water supply villages, and planning for wastewater management. reservoirs. More broadly, it helps to encourage dialogue-based solu- The process is expected to take nearly two years, tions in a contentious region, responding to the needs of including preparation of social and environmental safe- conflict-affected populations and building local capacity guards, completion of any potential resettlement or land for sustainable service delivery. acquisition programs, procurement of a contractor, and west bank and gaza 28 28 J O RDAN AND LE B AN ON World Bank assistance to Syrian refugees in Lebanon and Jordan requires urgency. MITIGATING THE IMPACT OF POPULATION DISPLACEMENT permanent, the consequences have included shortages FROM SYRIA in housing, jobs, and services. The volatility of such $2.4 million situations was underscored in 2007 when intense fighting broke out in northern Lebanon between national armed As many as 300,000 Syrians have been internally dis- forces and the Fatah group. Conflict spread to the Nahr el placed since violence broke out in Syria in March 2011. As Bared refugee camp where many Fatah family members many as 200,000 people are estimated to have been dis- lived among the 33,000 inhabitants. placed to neighboring Iraq, Turkey, Jordan, and Lebanon. Refugee integration also has other less-visible, nega- The displacement of populations internally as well tive consequences—increased rates of crime and inse- as across borders has created humanitarian needs and curity, economic exploitation of children, and overload strain on public services in recipient countries. This could in school systems. Communities that may welcome additionally contribute to existing sectarian tensions, displaced children find themselves swamped in the especially in Lebanon. In response, the SPF processed a absence of adequate facilities and human resources. The rapid response project outside its formal call for propos- SPF grant in Jordan focuses on strengthening community- als process to help alleviate the impact of displacement in based institutions to meet such needs. Primary healthcare both Jordan and Lebanon. services will be improved and economic empowerment The approved grant will support Jordanian and activities will be undertaken for vulnerable households, Lebanese authorities to manage the development impact especially those headed by women. of displacement. Assistance will be provided to host Since short-term displacement routinely converts to communities and authorities to sustain the economic, a longer-term development problem, the grant will also human, and social capital of affected populations. The be used to strengthen existing development capacities project aims to achieve near-term improvements in local within the host governments and communities. Grant- service delivery while at the same time building local funded training will be provided to on-the-ground service jordan and lebanon planning capacity for longer-term benefits. The project, teams from the national ministries of education and social implemented by Save the Children-Sweden, will support affairs. While these activities are modest, they will be refugees and host communities in both countries and focused locally and will help expand the experience base will include a socioeconomic impact study of protracted more broadly. Pathways will be created for follow-on displacement. projects that can continue to build capacity in areas such Syrian refugees in Lebanon have generally moved into as needs assessment and long-term planning. border villages that previously depended on underground Just as development organizations like the World trade and cross-border employment. Basic services in these Bank are not primarily focused on emergency response, communities were already minimal; however, with eco- emergency responders like Save the Children-Sweden nomic life now disrupted, local coping mechanisms as well are not primarily focused on long-term development. as government resources have been stretched to the limit. By creating an interface, the SPF helps to join these two As in Lebanon, the Jordanian Government has kept its perspectives. border with Syria open. Displaced persons have concen- trated in Ramtha, Mafraq, and the Northern Jordan Valley, three of the most economically vulnerable areas in the country. Services for families and children in this area are limited under normal circumstances, so the additional influx of displaced people has generated a significant burden. Both Jordan and Lebanon already are well experienced in the challenge of absorbing refugees. In Jordan, an estimated 380,000 Palestinian remain in camps. About 425,000 Palestinians and 20,000 Iraqis reside in Lebanon. As temporary displacement has become protracted or SPF ANNUAL REPORT 2012 29 PART IV: STR ATE GIC I NI T I A T I V E S In fiscal year 2012, the SPF launched strategic initiatives, “packages” of assistance that seek to promote successful state- and peace-building strategies at a country and regional level. The first such initiatives include efforts promoting citizen security in Central America and strategic initiatives addressing regional conflict and fragility challenges in Eastern Europe and Central Asia. WHAT CONSTITUTES A SPF STRATEGIC INITIATIVE? from the perspective of generating new approaches to addressing conflict and fragility and building on the WDR Starting with the work of the Post-Conflict Fund and messages around promotion of citizen security, justice, the LICUS Trust Fund, the World Bank has sought to and jobs. The goal is for SPF financing to be used to cata- improve the impact of its trust fund financing to coun- lyze broader change across the World Bank portfolio, and tries impacted by conflict and fragility. The extension, in support of fragility-sensitive strategies. The initiatives formalization, and “packaging” of the SPF’s approach in are conceptualized in relationship to piloting approaches FY2012 represents the latest step in that process. This is and influencing the use of larger pools of resources a natural progression of learning that also capitalizes on that might potentially be mobilized through IDA alloca- the momentum generated by release of the milestone tions, other multidonor trust funds within the Bank, and 2011World Development Report. complementary financing from donor partners. As part of its call for proposals in Fall 2012, the The SPF Secretariat has developed new processing SPF announced priority support for strategy initiative guidelines and has provided country teams with hands- applications: packages of assistance to support trans- on assistance to develop these packages. Knowledge and formative strategies aligned with 2011 WDR findings. learning components were strongly emphasized in their The announcement led to a competition for proposals design to facilitate mainstreaming across the spectrum of to design, develop, and finance multiyear initiatives that the Bank’s FCS operations. The SPF Secretariat and task went beyond the one-off stand-alone projects described teams also worked with staff and resources the Global in the previous section. These strategies are designed Center for Conflict, Security, and Development in develop- ing strategy initiative applications. The kinds of ideas that emerged—and are likely to be represented in subsequent applications—are illustrated by the following examples: Building upon larger Bank country strategies or help- ing to make them more FCS-sensitive—for exam- ple, helping to reshape how a multiyear Country Assistance Strategy or Interim Strategy Note might be planned or unfold; Updating such a strategy to refocus on prevention of or recovery from conflict and fragility, subnational violence, or an element of such violence related to organized criminality; Creating a cross-border multi-country strategy endorsed and supported by several country direc- tors; and Building broader partnerships that integrate joint programming with several partners or regional orga- nizations in support of shared goals. 30 CENTRAL AME RIC A Citizen Security in the northern triangle The SPF’s first strategic initiative tackles rising urban violence in Central America—combining education, social services, job creation, youth outreach, and judicial activities in an “integrated approach” to promoting citizen security. HONDURAS, EL SALVADOR, GUATEMALA The SPF’s first strategic initiative employs an inte- $5 million grated and learning-oriented approach to tackle the chal- lenges of urban violence. The international development Honduras, El Salvador, and Guatemala rank first, community, including the World Bank, is inexperienced in second, and seventh, respectively, in having the highest anti-crime and anti-violence programming compared to homicide rates in the world (UN Office on Drugs and the decades of accumulated experience in poverty invest- Crime, 2010). Their rates roughly doubled over the past ments and economic growth. A what-works evidence decade and the northern triangle of Central America was base is urgently needed to promote development in coun- ranked as the most violent sub-region in the world. tries and regions plagued by rising urban violence. Violence in Central America is the product of a tangled The Central American initiative will be implemented web of poverty, drug trafficking, urban gang culture, through three separate grants with one set of objec- social dislocation, and the complicated histories of each tives—strengthening regional knowledge; building affected country. Yet despite the multitude of causes, the national capacities, including coordination between cen- costs everywhere are similar: shared suffering and deep- tral governments and municipal actors; and improving the ening personal insecurity. donor tools that are used for risk assessment in this area. central america SPF ANNUAL SPF REPORT 2012 ANNUAL REPORT 2012 31 Partners include the respective national governments, the Cabinet in El Salvador). Similarly, data systems and crime/ Central American Integration System, the Organization of violence indicators will be improved at both national American States, UN agencies, research institutions, and and local levels. Training materials developed from these an array of municipal authorities and civil society groups. experiences will be shared more widely to support similar strategic initiatives The strategic initiative adds value to the shared effort innovation elsewhere. through the partnership framework itself, which expands In operationalizing the new integrated security model, opportunities for synergies and the application of shared a major challenge will be finding the “right” investment learning. balance among the many kinds of activities that a given center might offer in principle. Testing will generate the AN INTEGRATED APPROACH TO CITIZEN data for cost-benefit comparisons—for example, between SECURITY, HONDURAS primary services (such as crisis or legal intervention for battered women), secondary violence prevention (such as The initiative will launch work in Honduras through screening at-risk women or coordinating services across support to an interlinked network of neighborhood “secu- centers), and tertiary services (such as mental health rity centers.” These centers will offer comprehensive ser- support for women who have suffered trauma and face vices that span treatment, referral, and violence preven- ongoing risk of stress disorders). tion. The first level of response will be emergency services for individual victims of street crime, gang violence, and A REGIONAL LEARNING PLATFORM domestic violence. More general preventive services will AND RISK ASSESSMENT be designed and offered to reduce vulnerability among high-risk children, young adults, and older family mem- A third part of the package is a grant to create a bers. The menu for early intervention ranges from training regional learning and knowledge-sharing platform. This in parenting skills to introduction of violence-prevention includes an emerging network of applied researchers who programs in schools. Communities will be mobilized to will be better positioned to engage in ongoing policy dia- marshal resources for dealing with situational crime (for logue. The INCAE business management school in Costa example, working more effectively with local police) as Rica and the Woodrow Wilson International Center (a well as instituting a broader range of methods for conflict think tank based in Washington, D.C.) will take leadership resolution. The network of centers will be integrated at roles in coordinating these efforts. the national level, enabling neighborhoods to tap into The grant brings together service providers with resources that might otherwise be unavailable. researchers and policy specialists. Their complementarity The model will be refined through systematic testing will be strengthened through information technology— in high-crime neighborhoods. SPF support will provide for example, the creation of databases, portals, and infor- incremental financing for learning and wider sharing of mation systems for accessing regional crime statistics and information. This addresses a gap in the Bank’s larger the literature on violence prevention. Research seminars pre-existing project, the Honduran Safer Municipalities and regional workshops will bring together participants Initiative, which has already been approved within the for face-to-face dialogues. South-South virtual exchanges framework of the Bank’s country partnership strategy are also planned between practitioners and experts in with Honduras. Thus, the SPF initiative builds upon a Brazil, Colombia, Mexico, and South Africa working on pre-existing pathway that offers significant potential for urban violence prevention. Finally, the door for infor- scaling up a workable model. mation exchange can be opened more widely through the crowd-sourcing of new ideas in the Development APPLYING INTEGRATED APPROACHES IN GUATEMALA Marketplace. AND EL SALVADOR The Central American strategic initiative offers con- siderable potential for development interventions mak- A parallel grant in Guatemala and El Salvador will ing a difference in addressing urban violence. It creates support related activities by building upon early Honduran a laboratory for mapping the unfamiliar topography of results. Potential start-up activities will include strength- antiviolence activities as a set of investment alternatives, ening the capacity of national and local authorities to thus providing donors with more sophisticated and locally coordinate pre-existing policies and programs that target responsive methods for assessing risks, monitoring imple- citizen security (for example, the Violence Prevention mentation, and comparing outcomes. 32 32 EASTERN E UROP E AN D CE NT RA L A SI A Regional initiative on fragility and conflict Promoting a conflict-sensitive approach to World Bank strategy and operations in the ECA Region to address underlying sources of fragility and violence. AZERBAIJAN, GEORGIA, THE KYRGYZ REPUBLIC, conflict and fragility across the region, enabling the World THE RUSSIAN FEDERATION, TAJIKISTAN, UZBEKISTAN Bank and other partners to impact long-term outcomes $5.4 million more effectively. The initiative began with a wide range of consultations and a systematic portfolio review that Many countries in the Caucasus and neighboring focused on the previous five years. This included an array eastern europe and central asia Central Asia are violence- prone and/or conflict-affected. of investment projects, technical and advisory services, Their vulnerabilities include internal ethnic and religious and analytics on the drivers of conflict and fragility. Key tensions, long-standing unresolved disputes between lessons were drawn from this analysis, and a set of major states, new disputes over natural resources, trans-border unmet needs sprang to the surface—most prominently smuggling and criminality, social discontent related to the importance of community-driven development, the economic stagnation, and the unmet expectations of a long-standing needs of displaced populations, and the large under- employed youth population. These are post- urgency of integrating youth into society. authoritarian settings in which civil society and public Priorities for the initiative evolved iteratively through institutions in general are poorly matched against power- ongoing discussions with national authorities and civil ful interest groups in a struggle for the future. society organizations, as well as UN agencies, European The broad objective of the ECA strategic initiative is bilateral donors, and international NGOs. What emerged to generate better informed responses to the dynamics of was a collaborative framework within which new SPF ANNUAL SPF ANNUAL REPORT REPORT 2012 2012 33 33 approaches could be tested and refined. Four comple- Complementary activities will be implemented in sev- mentary activities were selected. eral countries simultaneously. These include exchanges that make use of social media websites and mobile tele- DIAGNOSTIC TOOLS phone applications. The initiative will draw upon crowd- strategic initiatives sourcing techniques that have been used to develop New methods will be developed to better ana- online games elsewhere—for example, the social-net- lyze responses to conflict and fragility in the region. work-based EVOKE game (“Changing the World”) from Methodologies were selected with scope for replication the World Bank Institute. Youth development activities in mind. In the Kyrgyz Republic, for example, the Bank’s will seek to engage young people in social accountability Interim Strategy Note specifies that a “conflict filter” is and development initiatives that promote their role in to be applied across the existing portfolio and that all fostering stability and economic development. new projects are to take “explicit account of conflict- related stress factors in portfolio management and new THE EVIDENCE BASE FOR PROMOTING SOCIAL project design.” Experience in other countries, such as Sri COHESION THROUGH COMUNITY-BASED DEVELOPMENT Lanka and Nepal, has confirmed that a simple checklist approach generally does not suffice. Thus the Kyrgyz The virtues of community-driven development (CDD) team will receive support to develop techniques that are often cited but have seldom been rigorously docu- can “map” fragile and conflict vulnerabilities more reli- mented, particularly the “returns” they generate in social ably. This diagnostic tool will be employed as part of an capital and cohesion in fragile and conflict-affected coun- “early-warning system” for flagging potential conflict so tries. This component proposes to learn from and expand that the Bank can respond proactively. Development of the evidence base. The initiative will pilot CDD projects the tool will be accompanied by expert technical train- designed to build community resilience in fragile settings, ing for both World Bank task teams and government and results from strengthened social cohesion will then be counterparts. targeted, monitored, and assessed. Civil society groups will also be closely involved. The Many IDA-financed, community-level projects are cur- goal is not simply improved World Bank decision-making rently under way in the large transnational Fergana Valley and better project management, but a greatly expanded that stretches across portions of the Kyrgyz Republic, social dialogue to reduce vulnerabilities and increase Tajikistan, and Uzbekistan. New tools to promote social the likelihood that new projects will work. Lessons from cohesion and conflict resilience are being introduced newly piloted methodologies—the Kyrgyz Republic map- and tested through these projects—for example, conflict ping and filter project, for example—will be adapted to mapping in which mobile phone users are able to track other countries in the region for further refinement. Peer- and report upon evolving crises through use of global to-peer learning and country-to-country exchanges are information systems. the primary mechanisms for transferring new insights. The Agha Khan Development Network employs a set of quality-of-life indicators to help assess social cohesion YOUTH INCLUSION IN THE CAUCASUS and will contribute to this component. The current survey will be adapted to include new quantitative and qualita- A very large share of the region’s 15-to-29 year-olds tive metrics. A baseline will be established to measure are uemployed or under-employed. The result is social and progress toward social cohesion in a set of ongoing CDD political marginalization of the young, and a high loss of projects. Pilot activities—for example, new forms of emerging talent through emigration. The young are not community asset management and cooperative resource only more likely to be vulnerable economically; they are sharing—will be introduced to test reciprocal impacts. more likely to be receptive to the extremism of violent ide- Pilot activities will be tested not only within communities ologies. On the other hand, they are also a driving force but across them. in the opposite direction—articulating the case for reform Partnerships will also be developed with domestic and providing energy and direction for positive change. and international research institutes and a comprehensive Thus the strategic initiative includes a range of activities interdisciplinary analytic framework will be developed for to enlist their participation in activities that promote the the research program. Issues such as pluralism, social role of young people in delivering social accountability cohesion, and community development will be spotlight- and good governance. ed, and local capacity will be enhanced through a center 34 for research excellence within the newly established University of Central Asia. The center will operate both in the Kyrgyz Republic and in Tajikistan. CAPACITY WITHIN THE WORLD BANK’S ECA REGION TO MITIGATE THE EFFECTS OF FRAGILITY AND CONFLICT A fourth component will strengthen capacity—within the ECA Region of the Bank specifically, and more gener- ally Bank-wide—to reduce risk of fragility and conflict in ongoing operations. The objective is to help mainstream workable strategies that expand resilience and stability in fragile and conflict-affected situations. This cross-cutting effort will internalize lessons and findings drawn from the other components of the initiative and help integrate these findings into the overall process of regional plan- ning. Knowledge exchanges, strategic dialogue, and capacity-building activities will all be undertaken so that World Bank staff are better equipped to manage current challenges as well as anticipate and respond to prospec- tive risks. SPF SPF ANNUAL ANNUAL REPORT REPORT 2012 2012 35 PART V: FIN AN CIAL SU M M A RY With the creation of the SPF in 2008, the World Bank Board of Directors approved $100 million over three years to finance the Fund (the Bank has since pledged an additional $33 million per year to the SPF). As of June 30, 2012, the SPF has received a total of US$163.8 million, financial summary comprising World Bank contributions (US$133.3 million), donor contributions (US$30.5 million), and investment income (US$2.9 million). Germany has pledged an amount of US$331 thousand for FY13. Table 1 outlines in detail the contributions received from each donor. TABLE 1: SPF DONORS (as of June 30, 2012) Contribution Pledge Total Overall, the SPF disbursement ratio at Donor Received (FY13) the end of June 30, 2012 was US$55.2 IBRD 133.3 33.3 166.6 million, or 34 percent of total contribu- AUSTRALIA 4.3 4.3 tions.1 Disbursements to SPF grant recipi- DENMARK 5.4 5.4 ents totaled US$48.9 million, or 30 percent of total contributions. Table 2 outlines the NETHERLANDS 14.1 14.1 percentage disbursed by fiscal year for all NORWAY 3.3 3.3 approved projects. SWEDEN 2.9 2.9 GERMANY 0.54 0.33 0.87 TOTAL CONTRIBUTIONS 163.84 33.63 197.47 TABLE 2: PROJECT DISBURSEMENTS BY YEAR (as of June 30, 2012) DISBURSEMENTS CUMULATIVE FY12 FY11 FY10 FY09 FY08 DISBURSEMENT TO GRANTEE 23,616,212.99 18,814,236.92* 5,750,760.51 677,664.16 0.00 48,858,874.58 In FY12, nine projects for a total of US$25.7 million The SPF portfolio has seen some shifts in terms of have been approved by the SPF committee, including regional representation since the fund’s creation. In line projects responding to urgent needs in Tunisia, Libya, with rising needs in the Middle East and North Africa, the Somalia, and countries dealing will spillover impacts from share of SPF financing to the region has increased from the conflict in Syria. With these recent project approv- nine percent of total SPF commitments in FY10 to 22 als, the SPF Committee has approved $121.2 million percent in FY12. Financing to the Africa region continues for 47 projects since its creation. There are currently 8 to be a priority for the SPF and represents 47 percent of projects and 3 Strategy Initiatives under preparation for the total SPF commitments. Figure 1 outlines SPF com- a total amount of approximately US$30.6 million. This mitments by region and year of project approval. Figure pipeline amount, if approved, will bring the total amount 2 illustrates the shift in regional composition of the SPF of projects approved to approximately US$151.8 million. between FY09 and FY12. In addition to its project portfolio, the SPF has supported six thematic learning activities, totaling US$1.67 million. 36 FIGURE 1: SPF COMMITMENTS BY REGION AND FY (US $ Millions as of June 30, 2012) 25 AFR 20 US $Million EAP 15 ECA 10 LAC MENA 5 SAR 0 FY 09 FY 10 FY 11 FY 12 As a recipient trust fund focused on partnership, the FIGURE 2: REGIONAL COMPOSITION SPF engages with a wide range of government agencies OF SPF PORTFOLIO, FY09 VERSUS FY12 and civil society organizations, transferring valuable (percent of total SPF Commitments, skills and lessons back to the World Bank. SPF projects as of June 30, 2012) are implemented through partnerships with government 6% line ministries as well as nongovernment entities such as 7% 61% international and local NGOs, research institutions, or UN agencies. Under exceptional circumstances, governments may request that the World Bank execute a portion or 26% phase of a project while local capacity required to imple- AFR ment the activities is developed. Table 3 provides a break- ECA down of SPF financing by recipient type. EAP 1% LAC FY 09 MENA 3% TABLE 3: SPF COMMITMENTS BY RECIPIENT TYPE, SAR 8% 47% THROUGH FY12 (US$ Millions, as of June 30, 2012) 10% Amount Number of RECIPIENT TYPE Committed SPF Grants2 10% Government Entity 51.0 21 NGO or iNGO 41.5 16 22% UN 10.5 5 World Bank-executed 10.4 7 FY 12 World Bank MDTF 4.2 2 Univ./Research Inst. .3 1 SPF SPF ANNUAL ANNUAL REPORT REPORT 2012 2012 37 annex 1: description of approved projects/strategy initiatives STATE AND PEACE-BUILDING FUND (SPF): DESCRIPTION OF APPROVED PROJECTS/STRATEGY INITIATIVES annex 1 COUNTRY PROJECT TITLE IMPLEMENTING AGENCY DEVELOPMENT OBJECTIVE AFRICA REGION Government Entity: Improve the safety and reliability of the power supply and Central African Safe and Reliable Public Energie Centrafricaine ensure sustainable operation of the power utility through Republic Electricity Project (Enerca) internal reform Prevent sexual violence against women and provide Protection from NGO: International Rescue assistance to victims through methods of prevention Cote d'Ivoire Gender-Based Violence Committee (IRC) and response; and community capacity building and coordination Strengthening Build skills for balanced investigative reporting, better communication and NGO: Claude Aburbe media management and advocacy for press freedoms, Cote d'Ivoire transparency for Associés (CAA) through strengthening independent media and fostering governance reform pluralistic civil society development Assist young entrepreneurs to launch successful Young Entrepreneurs and Cote d'Ivoire Urban Job Creation NGO: TechnoServe businesses and generate employment while also promoting corporate social responsibility Improve the provision of services that promote treatment Democratic Republic Addressing Gender Based NGO: International Rescue and prevention of gender based violence against women of Congo Violence in South Kivu Committee (IRC) and girls in South Kivu Directorate General of Build the foundation for transparent, socially inclusive, Extractive Industries Guinea Bissau Sectors Energy, Ministry of Energy and environmentally sustainable management of the and Natural Resources emerging extractive industries sectors Economic Governance Government Entity: Minis- Strengthen the capacity of the Ministry of Finance in criti- Guinea Bissau Support try of Finance cal areas of public financial management Enable the rural communities of Oio and Bafata to plan, Government Entity: Participatory Rural implement, and use and maintain priority basic social and Guinea Bissau Development Grant (PRD) Ministry of Economy and economic infrastructures and services through a transpar- Regional Integration ent and participatory process Increase citizen access to alternative dispute resolu- Improving Access to Government Entity: tion by establishing a framework for the operation of an Liberia Justice and Enhancing Ministry of Finance/ alternative dispute resolution mechanism at the local level Accountability Ministry of Justice and increase capacity of the government to implement corruption prevention measures Improve land tenure security through specific land law Government Entity: Liberia Land Sector Reforms Governance Commission reforms and the restoration of the land administration system Strengthen the capacity of the government to develop key Government Entity: policies and plans to allow for the systematic implementa- Civil Service Reforms and Liberia Capacity Building Ministry of Finance/Civil tion of the Civil Service Reform Strategy and deliver the Service Agency (CSA) training required to enable civil servants to fulfill their functions in reformed civil service system Promote sustained and conflict sensitive community development in the Niger Delta through an innovative Community Foundations NGO: Rivers State Nigeria Initiative Community Foundation framework for effective partnership and collaboration among local communities, civil society actors, private sector firms, and bilateral donors Somalia Knowledge for Provide the analytical underpinnings of better designed World Bank Executed on Somalia Operations and Political behalf of the recipient DP interventions and more transparent policy choices in Economy Program (SKOPE) Somalia 38 COUNTRY PROJECT TITLE IMPLEMENTING AGENCY DEVELOPMENT OBJECTIVE AFRICA REGION (continued) Recipient-executed: Cash-for-work program to increase access to food through Drought Management and Somalia Livelihood Project Food and Agriculture the markets by providing short-term employment in food Organization (FAO) insecure areas Strengthening Core Establish basic capacity within the government to manage World Bank Executed on South Sudan Functions for Managing behalf of the recipient resource dependence through technical assistance in Resource Dependence managing resources and revenue Government Entity: Promote a peaceful coexistence of groups by improving Peace-Building for Sudan Development Ministry of Finance and livelihood opportunities through development activities National Economy that address the important causes of ethnic conflicts Government entity: Support the identification and implementation of business- Private Sector Togo Revitalization Ministry of Economy and friendly reforms to attract investments; and facilitate the Finance start-up of small and medium size enterprises Beitbridge Emergency Improve access to sustainable quality water supply and Zimbabwe Water Supply and Beitbridge Town Council sanitation services in Beitbridge Sanitation Project EAST ASIA AND PACIFIC NGO: Division of Increase equitable access to basic services by: enhancing Inclusive Development in Community Development the capacity of local government and civil society Papua New Guinea Post-Conflict Bougainville (Autonomic Government of organizations to engage in more inclusive development (IDIB) Bougainville) planning and service delivery Support dynamic and coordinated strategic planning in Encouraging More Local NGOs and World conflicted-affected areas through improved data collec- Resilient Communities in Philippines Conflict-affected Areas in Bank Execution on behalf tion and analysis, enhanced operational effectiveness, of the Recipient greater conflict sensitivity and strengthened institutional the Philippines capacity for sustainable peace Support the review of existing regulatory frameworks and institutional capacities within the Ministry of Mining, Government and World Mining Sector Technical Energy and Rural Electrification; and build the institutional Solomon Islands Assistance (Phase 1) Bank Execution on behalf capacity of the Ministry to enhance the management of the of the Recipient mining sector, support a process of stakeholder engagement; and inform future policy initiatives Assist targeted urban poor to: i) increase their incomes Government and World Rapid Employment through the provision of short term employment; and ii) Solomon Islands (RE portion) Bank Execution on behalf improve their knowledge, experience and basic life-skills of the Recipient that are valued in the work place and society Opportunities and Improve the international development partners’ Challenges for Aid Delivery Regional in Sub-National Conflict The Asia Foundation understanding of the dynamics of selected sub-national conflict areas in South and South-East Asia Areas Develop effective community approaches to local NGO and World Bank Piloting Community development which create “space” and opportunity for Thailand Approaches Execution on behalf of the increased interaction and trust within and between recipient communities and the state apparatus SPF ANNUAL REPORT 2012 39 COUNTRY PROJECT TITLE IMPLEMENTING AGENCY DEVELOPMENT OBJECTIVE EUROPE AND CENTRAL ASIA Build trust among veteran groups in the public institutions Government by strengthening capacity of the responsible government annex 1 Bosnia/ Herzegovina War Veteran Reforms Implementation agencies to implement transparent and equitable targeting of benefits for all veteran categories Improve the social and economic integration of IDPs by Internally Displaced Government Entity: increasing their participation in community development Georgia Peoples Community Driven Ministry of Refugees and activities, and access to basic infrastructure, services and Development Accommodations employment Promote social cohesion through inter-ethnic collabora- Government Entity: Second Kosovo Youth tion among youth from marginalized and vulnerable groups Kosovo Development Ministry of Culture, Youth and improve economic opportunities for young people and and Sports sustainable access to youth services in Kosovo Improve the quality and availability of basic community Social Inclusion and Local NGO: Community Kosovo Development Development Fund (CDF) infrastructure and support small and micro enterprise development in a way that promotes social inclusion LATIN AMERICA & CARIBBEAN Directorate General of Build the foundation for transparent, socially inclusive, Protection of Patrimonial Colombia Assets (Phase III) Energy, Ministry of Energy and environmentally sustainable management of the and Natural Resources emerging extractive industries sectors Strengthen government and community efforts to provide Government Entity: water and sanitation services in participating rural Haiti Rural Water and Sanitation Société Nationale d’Eau communities and small towns in the Southern Department Potable (SNEP) of Haiti MIDDLE EAST AND NORTH AFRICA Consultative Service Develop local communities’ capacities for sustainable, Iraq Delivery Program NGO : ACDI/VOCA consultative decision making on resource allocation and (Phase III) service delivery Ministry of Planning and Enhancing Legal Aid International Cooperation Facilitate access to existing legal aid services, enhance Jordan Services to Iraqi and (MOPIC) in collaboration services, and improve institutional performance for the Palestinian Refugees with the Justice Center for benefit of Iraqi and Palestinian refugees Legal Aid (JCLA) Expand opportunities for meaningful volunteering, Government Entity: develop the institutional capacity of the MOSA, NGOs, and The National Volunteer Lebanon Service Program (NVSP) Ministry of Social Affairs universities to effectively utilize volunteers, and build (MOSA) the capacity of youth to become active volunteers and to contribute to communities The objective of the proposed grant is to contribute to national and local efforts to minimize the development Mitigating NGO and World Bank impact of displacement following the Syrian conflict by Socio-Economic Impact Lebanon/Jordan of Syrian Execution on behalf of the improving access to basic education, vocational training recipient opportunities for targeted host and displaced communities Displacement as well as improving the capacity to deal with displaced populations of key local stakeholders Support the Libyan transition process through the provi- Transitional Assistance World Bank Executed on Libya to Libya behalf of the recipient sion of appropriate technical assistance and socio-eco- nomic analysis on development priorities Participatory Service NGO: Union Tunisienne de Improve access to social services and job opportunities Tunisia Delivery for Reintegration la Solidarite Sociale using participatory approaches in underserved regions Water Supply and To improve the delivery of water and the planning of Sanitation Improvements Government wastewater services in conflict-affected rural West Bank and Gaza for West Bethlehem Implementation communities that are marginalized due to mobility Villages restrictions 40 COUNTRY PROJECT TITLE IMPLEMENTING AGENCY DEVELOPMENT OBJECTIVE SOUTH ASIA Build trust among veteran groups in the public institutions Demand for Good Government by strengthening capacity of the responsible government Nepal Governance Implementation agencies to implement transparent and equitable targeting of benefits for all veteran categories To enable civil society practitioners and government Program for Accountability Government Nepal in Nepal (PRAN) Implementation official in Nepal to effectively promote and implement social accountability approaches SPF ANNUAL REPORT 2012 41 endnotes and photo credits ENDNOTES 1 When referencing “fragile and conflict-affected situations”, the World Bank uses the abbreviation FCS. A fragile situation is defined as having either (a) a composite World Bank, African Development Bank, and Asian Development Bank Country Policy and Institutional Assessment rating of 3.2 or less; or (b) the presence of a United Nations and/or regional peace- keeping or peace-building mission (for example, African Union, European Union, NATO), with the exclusion of border monitoring operations, during the past three years. PHOTO CREDITS Cover: Khalil Mazraawi/AFP pp. 2-3: Arne Hoel/The World Bank p. 4: Gerhard Jörén/The World Bank p. 5: Jean-Martin Brault/The World Bank pp. 6-7: FAO p. 11: GRM International p. 13: Program for Accountability in Nepal (PRAN) p. 15: Arne Hoel/The World Bank p. 19: Jean-Martin Brault/The World Bank pp. 20-21: FAO p. 23: Mohamed Nureldin Abdallah/Reuters p. 25: Jan Banning/Panos Pictures p. 26: Esam Al-Fetori/Reuters p. 28: Ibraheem Abu Mustafa/Reuters p. 30: GRM International p. 31: Christopher Anderson/Magnum p. 33: Victor Drachev/AFP p. 35: Moises Saman/Magnum pp. 36-37: Dominic Chavez/The World Bank 42 People in fragile and conflict-affected states are more than twice as likely to be undernourished as those in other developing countries, more than three times as likely to be unable to send their children to school, twice as likely to see their children die before age five, and more than twice as likely to lack clean water. On average, a country that experienced major violence over the period from 1981 to 2005 has a poverty rate 21 percentage points higher than a country that saw no violence. No low-income fragile or conflict-affected country has yet achieved a single Millennium Development Goal. —The World Development Report 2011: Conflict, Security, and Development The State and Peace-Building Fund Global Center on Conflict, Security and Development (CCSD) Operations Policy and Country Service The World Bank 1818 H Street NW Washington, DC 20433 USA Tel. +1 202 458 0352 Fax. +1 202 522 2266 email: spf@worldbank.org www.worldbank.org/fragilityandconflict © 2012, The World Bank