Fragile and Maximizing the Impact of Conflict-Affected the World Bank Group in Situations March 2018 © 2018 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. RIGHTS AND PERMISSIONS The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights@worldbank.org. Cover Photo | “Butterfly, Promoting Peace Through the Arts” © Fantascope 2017 Inside Cover | Markus Kostner / World Bank 2012 Foreword Half a billion people today face uncertainty, fear and suffering as a direct result of living in countries affected by conflict. By current projections the share of the world’s poorest people living amidst fragility, conflict and violence could reach 60 percent by 2030. Poverty trends are directly proportional to the intensity of violence. The World Bank Group aims to end extreme poverty by the end of the next decade, an objective shared with the international community and expressed in the first Sustainable Development Goal. As we and global partners pursue this ambition, the implication could not be clearer: success depends upon greater focus, stronger collaboration and deepening the effectiveness of our work in places where FCV threatens so many lives. This report reveals how we are leveraging our business model to deliver results in the world's most difficult environments. As you will discover in reading it, we are already making important strides to increase not just the volume but also the impact of our work everywhere that FCV exists. From our Global Practices through to our Regional and Country teams, everyone is putting shoulders to the wheel. That goes also for our colleagues in IFC and MIGA. We all share the same understanding that to succeed in our mission of ending poverty we have to solve the crisis for the two billion imperiled by FCV. Development challenges associated with the ravages of war, the shock of forced displacement and refugee inflows, as well as the fault lines of ethnic, religious, and other societal divisions demand solutions that get to the root causes of why countries become fragile or get stuck in that dilemma. In other words, business as usual will no longer suffice. Our FCV Group plays a critical role in helping operational teams understand and address this complexity. Its analytical work enables country units to introduce a “fragility lens” into their diagnostics, programmatic strategies, and project design. It gives technical and strategic inputs into policy dialogue with governments on sensitive issues such as the treatment and protection of refugees. It helps lead recovery and peacebuilding assessments with the United Nations that enable countries to chart a path to peace and recovery in the aftermath of war. In the context of IDA18, this “alliance to implement” between operational teams and the FCV Group has taken on greater importance. IDA18 has doubled the resources available for FCV settings, from $7 billion under IDA17 to more than $14 billion today. It also offers further resources to address fragility-related challenges, for instance the Risk-Mitigation Regime which will fund projects to promote stability in four at-risk countries. A new $2 billion window will provide more financing to help refugee-hosting governments promote sustainable socioeconomic solutions for refugees and host communities. And in middle-income countries, where most people living in fragile contexts are located, innovative financing mechanisms such as the Global Concessional Financing Facility and the State and Peacebuilding Fund are providing teams with the resources to pilot new remedies for forced displacement and other FCV issues. But even as IDA18 and other tools offer new opportunities to tackle fragility, maximizing our impact on the ground will require pushing - and in some cases going beyond - our traditional operational boundaries. This report also highlights areas where innovation is happening. Strengthening the nexus between humanitarian, development, and peacebuilding efforts; leveraging implementation partnerships with the UN and INGOs to stay engaged during active conflict; and pivoting to prevention in our approach to conflict, crisis, and extremism – we are going the extra mile to deal effectively with the acute challenges of FCV. The quest to end poverty is fundamentally about changing lives. Beyond the statistics, our impact must be measured in bringing hope, opportunity, and peace to the world’s most vulnerable citizens. While I remain eager to do more and know that we will continue to increase our impact, I am proud of our achievements. I hope that you share in that pride. Kristalina Georgieva CEO, The World Bank i Table of Contents Foreword i Table of Contents ii Acknowledgment iv Abbreviations and Acronyms vi Executive Summary ix INTRODUCTION: PRIORITIZING THE FRAGILITY AGENDA 1 SECTION 1: THE RENEWED WBG STRATEGIC & OPERATIONAL APPROACH TO SCALE UP IMPACT IN FRAGILE AND CONFLICT-AFFECTED SITUATIONS 9 1. Addressing Fragility by Operationalizing the Differentiated and Risk-Based Approach 10 2. Scaling up WBG response to Forced Displacement 13 3. Deepening the humanitarian-development-peacebuilding nexus – the “New Way of Working” 16 4. Maximizing Financing and Promoting Private Sector Development 17 5. Enhancing WBG Operational Effectiveness 19 SECTION 2: DELIVERING ACROSS THE WORLD BANK GROUP 25 2.1 The Value Proposition of the FCV Global Theme Group: Aligning to Implement, Innovating to Deliver 25 Enhancing operational impact in contexts of fragility 26 Addressing fragility challenges requires deploying innovative financing 28 Pivoting to Prevention 30 Leveraging knowledge and partnerships 35 2.2 Regional Highlights: 37 Africa 37 East Asia and Pacific 42 Europe and Central Asia 45 Latin America and the Caribbean 46 Middle East and North Africa 48 South Asia 50 2.3 Global Practices’ Highlights: 56 Equitable Growth, Finance and Institutions 56 Human Development 57 Sustainable Development 59 2.4 Promoting Private Sector Development in FCS 62 IFC in FCS 62 MIGA in FCS 68 Bringing the public and private sectors together: PPP in FCS 72 ii Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations SECTION 3: GLOBAL ENGAGEMENT, INNOVATIVE SOLUTIONS 79 Gender in FCS 79 Climate Change and Fragility 88 Working in Conflict: Third Party Monitoring & ICT 98 Responding to Forced Displacement: Refugees and IDPs 108 The Prevention Agenda 112 Engaging with Non-Traditional Stakeholders 118 Leveraging Knowledge and Partnerships for Impact 122 SECTION 4: OPERATIONALIZING THE WBG APPROACH IN FCS: GLOBAL PRACTICES IN ACTION 125 4.1 Equitable Growth, Finance and Institutions1 125 Finance & Markets Global Practice 125 Governance Global Practice 129 Macroeconomic and Fiscal Management Global Practice 139 Poverty and Equity Global Practice 144 Trade & Competitiveness Global Practice 148 4.2 Human Development 155 Education Global Practice 155 Health, Nutrition, and Population Global Practice 159 Social Protection and Jobs Global Practice 166 4.3 Sustainable Development 173 Agriculture Global Practice 173 Energy and Extractives Global Practice 180 Environment and Natural Resources Global Practice 186 Social, Urban, Rural, and Resilience Global Practice 191 Transport and Digital Development Global Practice 199 Water Global Practice 206 CONCLUSION: THE ROAD AHEAD TO ENHANCE WBG IMPACT IN FCS 213 ANNEXES: IDA18 POLICY GUIDELINES; EMPLOYEE VALUE PROPOSITION 217 The Global Practices list used is that of December 31, 2017, prior to changes made in the Equitable Growth, Finance and 1 Institutions Practice Group Organizational Structure. iii Acknowledgment Fragility, conflict and violence (FCV) is at the forefront of the World Bank Group’s business and is among the most pressing challenges as we strive to achieve the WBG’s twin goals. This report was inspired by the commitment of the World Bank Group (WBG) to strengthen its strategic and operational approach with the objective to maximize its impact in Fragile and Conflict-affected Situations (FCS). This paper offers an overview of the extent and diversity of the work carried out across the WBG and suggests key priorities moving forward. In doing so, it also identifies several cross-cutting themes and gaps in areas that will require further work over the coming years. This report was developed under the leadership of Franck Bousquet, Senior Director for Fragility, Conflict, Violence and Forced Displacement, and the coordination of Olivier Lavinal, Senior Fragility Expert, and includes the inputs and contributions of all the Regions, Global Practices, Global Themes, as well as of IFC and MIGA. Section 1 draws on the seminal work undertaken by Alexandre Marc, as well as on the overall guidance of Colin Bruce, Radhika Srinivasan, Xavier Devictor, Amara Konneh and Steen Andersen and the entire team of the FCV Global Theme Group, with special thanks to Daniel Balke and Abdelqader Bakir. This section also benefited from the guidance of Stephane Guimbert, DFI, Hassan Zaman, OPCS, Wei Wang, Human Resources, as well as Vikram Raghavan, Legal. Section 2 was the result of a collaborative effort with all six regions under the guidance of the six Regional Vice Presidents and the Directors of Strategy and Operations, and the inputs of Paola Ridolfi, Maria Ionata (AFR), Catherine Martin, Pelin Arslan, Boris Gamarra (EAP), Sascha Djumena, Gloria La Cava (ECA), Michelle Keane (LCR), Sajjad Shah, Million Fikre (MNA), Anastassia Alexandrova, and Janmejay Singh (SAR). The team is also grateful to the three GP Vice Presidents and their Directors of Strategy and Operations, with the inputs of Soji Adeyi (HD), Omowunmi Ladipo (EFI), Leena Chaukulkar, Magda Garcia (SD). This section is also the result of fruitful collaboration across the World Bank Group, with sincere thanks to IFC, namely Martin Spicer, Michel Botzung, Tracy Washington, Betsy Alley, Jiyeon Janice Ryu, Joanna Kata, Audrey Achonu, and to MIGA, namely Merli Baroudi, Dan Biller, Muhamet Fall, Faisal Quarishi, Nabil Fawaz and Bexi Jimenez for their inputs and review. Section 3 was developed with the help of: Lisa Holmberg, Lucia Hanmer, Jocelyn Kelly, Diana Arango, Stefan Agersborg, Brittany Walters, Lucia Hanmer, Jocelyn Kelly, Junglim Hahm, Pankaj Gupta, Francois Olivier Bergere, Neeraj Prasad, Ana Bucher, Margaret Arnold, as well as of Stephan Massing, Luigi Giovine, Corey Pattison, Milena Stefanova, Caroline Vagneron, Paul Bance, Asbjorn Wee, Paul Bisca, Natalia Rodriguez, Husam Abudagga, Erina Iwami, Bernhard Metz, Sandra Landi, Jannie Lilja, Kristina Nwazota, Cynthia Delgadillo, and Mariam Haidary. Section 4 would not have been possible without the invaluable inputs from numerous colleagues throughout the World Bank Group, including many Practice Managers and FCV focal points. This section is notably indebted to: Markus Kostner, Johanna Damboek, Laura Bailey, Andrew Roberts, Mike Edwards, Bartol Letica, Bianca Adam, Helene Grandvoinet, Paul Welton, Ivailo Izvorski, Giorgia Demarchi, Nabila Assaf, Asta Bareisaite, Keta Ruiz, Meriem Ait Ali Slimane, Kiran Afzal, Paul Welton, Jean Saint-Geours, Peter Darvas, Dina Abu-Ghaida, Joel Reyes, Cristina Marosan Ling, Ernest Massiah, Sameera Al Tuwaijri, Giuseppe Zampaglione, Malcolm Cosgrove- Davies, Morgan Bazilian, Joern Huenteler, Liliana Elisabeta Benitez, Asad Ali Ahmed, Erik Magnus Fernstrom, Gisu Mohadjer, Riccardo Puliti, Enos Esikuri, Tracy Hart, Kulwinder Singh Rao, Saleema Vellani, Anders Jagerskog, Dominick Revell de Waal, Mary Babirye, Edouard Al-Dahdah, Anna Autio, David Bontempo, Winter Chinamale, Emmanuel Cuvillier, Bill Dorotinsky, Yousif Mubarak Elfadil, Verena Fritz, Ousmane Kolie, Rima Koteiche, Anjani iv Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations Kumar, Peter Ladegaard, Michel Mallberg, Francis Muthuiya, Rock Jabbour, Eva Kloeve, Petter ludkvist, Michael Mahrt, Jad Mazahreh, Nick Menzies, Ocheng Kenneth Kaunda Odek, Paul Prettitore, Francesca Recanatini, Michael Roscitt, Michael Shaeffer, Sirirat Sirijaratwong, Pascal Tegwa, Sally Torbert, Stig Trommer, Dorte Verner, Nora Kaoues, Izabela Leao, Jeren Kabayeva, Luz Diaz, Mohamed Medouar, Adetunji A. Oredipe, Miguel Fernando Pinedo Palau, Amanullah Alamzai, Rufiz Vakhid Chirag-Zade, Caroline Plante, Brenna Moore, Robert Townsend, Sanjiva Cooke, Junglim Hahm, Pankaj Gupta, Cledan Mandri-Perrott, Francois Bergere, Bayo Oyewole, Jane Jamieson, Deblina Saha, Jenny Chao, Lauren Wilson, Fernanda Ruiz, John Saville, Jehan Arulpragasam, Hana Brixi, Randa El-Rashidi, Xavier Furtado, Silvia Fuselli, Yashodhan Ghorpade, Dena Ringold, Rene Solano, Suleiman Namara, Stefano Paternostro, Nadia Selim, Andrea Vermehren, and Jan von der Goltz. Special appreciation is extended to Hartwig Schafer, Vice President for Global Themes, as well as to the leadership teams of IFC, MIGA, and the World Bank. This report benefited from the editing support of Burton Bollag and its design was completed by Mihae Kim and Aimee Mahler, Gimga Group. v Abbreviations and Acronyms ACLED Armed Conflict Location & Event Data AF additional financing AML anti-money laundering ASA Advisory Services and Analytics ASP Adaptive Social Protection CAT Bond catastrophe bond CAT DDO Catastrophe Deferred Draw-Down Option CCSA Cross Cutting Solution Areas CDC Community Development Council CDD community-driven development CEA Country Environmental Assessments CFT combating the financing of terrorism CMAW Creating Markets Advisory Window CMU country management unit CPF Country Partnership Framework CSO civil society organization DEC Development Economics Vice Presidency DFi Development Finance (Vice Presidency) DIB development impact bond DNA Damage and Needs Assessment DPF Development Policy Financing DPG Development Policy Grant DPL Development Policy Loan DPO Development Policy Operation DRM Disaster Risk Mitigation ECD early childhood development EM emerging market EMDE Emerging Markets and Developing Economies ERA education resilience approach FIL Financial Intermediary Loan FCS fragile and conflict-affected situations FCV fragility, conflict, and violence GBV gender-based violence GCFF Global Concessional Financing Facility GCMP Global Crisis Risk Management Platform GIS geographic information system GP Global Practice GPSA Global Partnership for Social Accountability GEF Global Environment Facility GFDRR Global Facility for Disaster Reduction and Recovery GIF Global Infrastructure Facility HDP humanitarian-development-peace IBRD International Bank for Reconstruction and Development ICRC International Committee of the Red Cross ICT information and communication technology IDA International Development Association IDA18 [most recent 3-year IDA budget period, July 1, 2017 to June 30, 2020] IDP internally displaced person IFC International Finance Corporation vi Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations IFF Illicit financial flows IFI international financial institution ILO International Labor Organization I-NGO international non-governmental organization IP Incentive Program IPF Investment Project Financing IPP independent power project IPV intimate partner violence INGO international NGO IsDB Islamic Development Bank KP knowledge products LDCF Least Developed Countries Fund LEG Legal Vice Presidency LIC low-income country MCR movable collateral registry MDB multilateral development bank MDTF multi-donor trust fund M&E monitoring and evaluation MENA The Middle East and North Africa MGF MIGA Guarantee Facility MIC middle-income country MIGA Multilateral Investment Guarantee Agency MOF Ministry of Finance ODK open data kit OHS occupational health and safety OPCS Operations Policy and Country Services Vice Presidency PCG partial credit guarantee PCNA post-conflict needs assessments PEFA Public Expenditure and Financial Accountability PEFM Public Expenditure and Financial Management PER public expenditure review PFM public financial management PforR (P4R) Program-for-Results PHC primary health center PMU Project Management Unit PPA Power purchase agreement PPCR Pilot Program for Climate Resilience PPI Private Participation in Infrastructure PPIAF Public – Private Infrastructure Advisory Facility PPP public-private partnership PSW Private Sector Window RCW Recurrent Cost Window RPBA Recovery and Peacebuilding Assessment RRA Risk and Resilience Assessment SCD Systematic Country Diagnostic SDG Sustainable Development Goal SEA sexual exploitation and abuse SME small & medium-sized enterprises SPCR Strategic Program for Climate Resilience vii SPF State and Peacebuilding Trust Fund SPJ Social Protection and Jobs SSA Sub-Saharan Africa SSN social safety nets TA technical assistance TAR turnaround regime TF trust fund TPM third party monitoring UNHCR United Nations High Commissioner for Refugees UNICEF United Nations Children’s Fund UNOPS United Nations Office for Project Services UNSG United Nations Secretary General VC venture capital VE violent extremism VPU vice presidential unit WFP World Food Program WHO World Health Organization World Bank Regions: AFR Africa EAP East Asia and Pacific ECA Europe and Central Asia LCR Latin America and the Caribbean MNA Middle East and North Africa SAR South Asia Global Practices: Equitable Growth, Finance and Institutions F&M Finance & Markets GGP Governance MFM Macroeconomic and Fiscal Management P&E Poverty and Equity T&C Trade & Competitiveness Human Development Education Education HNP Health, Nutrition, and Population SPJ Social Protection and Jobs Sustainable Development AGR Agriculture EEX Energy and Extractives ENR Environment and Natural Resources GSURR Social, Urban, Rural, and Resilience TDD Transport and Digital Development WAT Water $ = US Dollars viii Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations Executive Summary This report provides a comprehensive overview of the World Bank Group’s (WBG) engagement in contexts of fragility, conflict, and violence (FCV). Its central message is that the Bank will only achieve its Twin Goals of ending extreme poverty by 2030 and boosting shared prosperity by increasing its impact in FCV settings. The report provides insight on how Global Practices and teams across the WBG are tackling these critical challenges, with a focus on cross-cutting fragility issues that appear across geographies and sectors. In cooperation with local, national and global partners, the WBG aims to strengthen its strategic and operational approach to FCV situations to enhance impact on the ground. Poverty and fragility are increasingly interlinked. By 2030, projections show that between 43 percent and 60 percent of the world’s extreme poor will live in FCV contexts. Several serious risks seem to be increasing: conflict, violent extremism, climate change, pandemics and food insecurity. These risks transcend national borders and can destabilize and hamper the development of entire regions. Conflicts drive 80 percent of all humanitarian needs and reduce GDP growth by 2 percentage points per year, on average. Today, violent conflict kills more people than at any time in the past 20 years, displaces people from their homes in numbers not seen since World War II, and sets affected countries back decades in terms of development progress. Tackling the development dimensions of FCV stands at the heart of the WBG’s mission and business. While fragility impacts many of the world’s poorest nations, it is on the rise in middle- income countries (MICs), as well. FCV risks are diverse and increasingly linked with global political, economic, and social systems, meaning that the spillover effects of fragility can extend across the world. Trends such as climate change, demographic shifts, new technologies, illicit financial flows, and transnational ideological movements will only deepen fragility’s global reach. The FCV agenda demands new approaches and increasingly sophisticated solutions for low-income countries (LICs) and MICs alike. The magnitude of the challenges linked to fragility therefore requires the WBG to be innovative, and do business differently to be effective in bending the curve of fragility. This report highlights innovations at strategic and operational levels, and showcases solutions across the WBG, including in terms of new partnerships to improve impact on the ground and enhance the effectiveness of WBG programs. In response to these challenges, the WBG is scaling-up efforts to maximize its impact in fragile and conflict-affected situations (FCS). In this context, the number one priority is to deliver effectively and target FCV factors to ensure better results. The record IDA18 replenishment doubles core resources for these contexts from around $7 billion under IDA17 to $14 billion today. IDA18 presents an opportunity to tackle significant challenges of FCV (enhanced focus on forced displacement and scaling-up operations that target refugees, new FCV Risk Mitigation Regime, strengthening operational effectiveness, etc.), also taking into account that fragility exists in both LICs and MICs. The strategic alignment across IBRD, IDA, IFC, and MIGA, coupled with a strong alliance to implement across the Regions/CMUs, Global Practices, and the Global Themes, aims to enhance the Bank Group’s effectiveness in FCV settings and provide innovative solutions that these settings increasingly demand. ix Building on a renewed understanding of fragility, the WBG’s strategic approach, operational tools and interventions in FCV are structured along five priorities: (i) operationalizing a differentiated and risk-based approach; (ii) scaling-up its response to forced displacement; (iii) operationalizing the humanitarian-peace-development nexus, including through strengthened partnership with the United Nations and non-governmental actors; (iv) maximizing finance for development, catalyzing private sector development, and promoting innovative financing; and (v) enhancing operational effectiveness by improving staffing, enhancing flexibility, and leveraging knowledge. In parallel, the WBG is putting special emphasis on gender in FCV and is expanding its traditional focus on gender-based violence to include additional dimensions linked to the construction and impact of gender roles, youth at risk, and the empowerment of women through political and economic opportunities. As documented in the WBG Gender Strategy, gender equality is central to the twin goals and, in FCS in particular, addressing gender disparities – in participation, economic life, voice and agency – can both contribute to building and sustaining peace as well as to individual, community and family well-being. This report offers an overview of the strategic and operational engagement of the World Bank’s fourteen Global Practices and five Thematic Groups across the six regions of the world, as well as of the IFC and MIGA. It gives concrete country examples in which the WBG has deployed innovative solutions to address a range of cross-cutting challenges. The report provides concrete examples, draws lessons, and lays out key areas for deeper engagement. Questions raised include: How to respond to the growing global wave of forced displacement? How to supervise programs in conflict areas, including by leveraging IT and third-party monitors? How to conceptually define and operationally deliver the prevention agenda? How to strengthen and operationalize the humanitarian- development-peace nexus in cooperation with the United Nations, and non-governmental organizations but also bilateral agencies? Looking ahead, having significantly redefined its understanding of fragility, the WBG is refining its operational approach. The FCV Global Theme Group (FCV Group) is playing a key role in this effort, working closely with staff across the Bank to deliver comprehensive solutions and coordinated approaches to the urgent development challenges of fragility, including with MIGA and IFC. Its primary mission is to support country and Global Practice teams in promoting economic and social inclusion and paving a path to peace, stability, and development gains in FCV settings. In parallel, IFC’s FCS/IDA Coordination Unit and its FCS Africa Program work to unlock private sector potential in FCS by developing new tools and practices to increase IFC’s investment and impact in these markets. While they approach the task from different angles, these teams share a clear and compelling ambition: to put the people and places impacted by fragility on a clear path to ending poverty. x Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations xi 14 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations Introduction Prioritizing the Fragility Agenda FCV INCREASINGLY DRIVES POVERTY AND Victims of violence are diverse, with 30 to HUMANITARIAN CRISES 40% of political violence directed at civilians, and women and children disproportionately Poverty and fragility are increasingly bearing the consequences of violence. The interlinked. By 2030, projections show that costs and impacts of violent conflicts span well 60 percent of all those in extreme poverty will beyond national borders, killing more people be living in countries in situations of fragility, than at any other time in the past 20 years, conflict and violence (FCV). Over the last fifteen displacing people from their homes in numbers years, the countries that have faced the largest not seen since World War II,5 and setting poverty increases suffered from civil wars, affected countries back decades in terms of violent conflict, and other severe disruptions development progress. For the World Bank to governance and the rule of law, such as Group (WBG), addressing the challenge of political crises or major governance challenges. FCV is therefore a strategic priority to achieve Today, it is estimated that 2 billion2 people live its twin goals of ending extreme poverty and in countries in situations of fragility and poverty, boosting shared prosperity. experiencing violent conflict or interpersonal violence. Most of them live in lower-MICs (38 percent) and upper-MICs (37 percent) FIGURE 1: FCV RISK FACTORS countries, and 25 percent in low-income countries.3 From a world development perspective, addressing fragility in middle-income countries (MICs) is therefore critically important. Violence is hampering development. Conflicts drive 4/5th of all humanitarian needs and reduce global GDP growth by 2 percentage points per year, on average (IMF). The aggregate economic cost of conflict on the global economy was estimated at $14.3 trillion in 2016 – more than 12.2 percent of world GDP.4 But the averages mask the diversity of conflict situations and of their victims. 2 This estimation of the population whose development outcomes is affected by FCV encompasses the population of countries that meet one of the following three criteria: (i) Countries that meet the IDA-criteria for fragility Country Policy and Institutional Assessment (CPIA) rating below 3.2 (non-harmonized rating) [IBRD and “blend” countries are included. Data Source: CPIA, World Bank]; (ii) Presence of UN Post-Conflict or UNDPKO Missions, or battle-related or terrorism-related deaths higher than 25 (Uppsala Conflict Data Program, UCDP) [Countries with UN Good Office Missions of the Department of Political Affairs and Border missions are also included]; and (iii) levels of intentional homicides well above the WHO level of “epidemic of homicides” (25 per 100,000 population, rather than 10 per 100,000 population) [Data source: WHO]. Source: FCV, staff calculations, 2015 (updated 2017). 3 World Bank 2015 4 Institute for Economic and Peace, 2015. “Global Peace Index: Measuring Peace, its Causes and its Economic Value. New York. 5 Office of the United Nations High Commissioner for Refugees, 2016. “Global Trends: Forced Displacement in 2015”. Geneva. Introduction 1 FIGURE 2: VIOLENT CONFLICT, GLOBAL, 1975-2016 Source: Pathways for Peace, Inclusive Approaches to Preventing Violent Conflict, forthcoming THE FCV RISKS HAVE BECOME MORE Depending on the confluence of risk factors, DIVERSE AND INTERLINKED6 different risk profiles emerge. Governments in some middle-income countries have failed Risk factors co-occur to impact low- and to improve local governance and equitably middle-income countries in different ways. expand development despite achieving The nature of conflict is changing and impressive economic growth. Localized challenges related to fragility are not confined areas of fragility and subnational violence to weak state capacity and poor governance of also exist within the boundaries of otherwise low-income countries (LICs). FCV incidents do high capacity and skilled middle-income not respect state boundaries and have regional countries, and can be found around the and global spillover effects. Global fragility world. In some countries, soaring homicides risks are on the rise. While in the post-Cold and organized criminal violence are prevalent War period, the number of civil and inter-state and recent conflicts demonstrate that wars has decreased, the debilitating effects of sustainable development is under threat conflict, political instability and violence are irrespective of geography, income level, increasing. Since 2010, the number of people or development of institutions. killed by violent conflict has been increasing sharply and conflicts are more interlinked. 6 World Bank, FCV Group, 2017 2 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations FIGURE 3: MAPPING GLOBAL RISKS Source: Global Risks Report 2018, World Economic Forum GLOBAL FACTORS SHAPE COUNTRY AND face, and make it harder to manage conflict REGIONAL FRAGILITY DYNAMICS constructively. Among these factors, advances in information and communication technology The greater interconnectivity of today’s connect local grievances to regional and global world contributes to the volatility of the narratives, enabling perceptions of exclusion global balance of power. The massive to play an important role in mobilizing violent increase in flows of capital, information, conflicts and violent extremism. These violent and people across borders that accompany conflicts are driving historic refugee flows and globalization brings immense benefits, exacerbating the vulnerability of populations to but also creates additional realms of stress other crises, like floods and extreme weather that aggravate the vulnerabilities societies events that can destroy crop fields, livestock Introduction 3 assets, water, and sanitation systems, and international context has witnessed a major cause food insecurity and malnutrition. Today, spike in violent conflict, and is still marked by 66 million people are forcibly displaced, the dire consequences of the Arab uprisings. including 21 million refugees. Climate change Also, the WDR 2011 was mainly focused on can exacerbate scarcity of natural resources conflict reconstruction, and not on prevention. and contributes to stresses that can provoke In effect, a new vision to address violent conflict, especially food insecurity, economic conflicts and take into account recent trends shocks, and migration. Direct resource is needed today, and call for an expanded competition from relative scarcity of a specific understanding of human well-being, food natural resources – arable land, for example – insecurity, and the cost to individuals and can create tensions within and among groups. society of conflict and displacement. Demographic growth and urbanization intensify pressure on services, increase pollution, and This new vision for the FCV agenda result in new fragile cities. By 2050, cities are increasingly requires sophisticated solutions expected to absorb an estimated 2.5 billion that deepen and broaden support for both additional people, with a 90 percent increase LICs and MICs. The growing complexity of in Africa and Asia. Increasing social polarization development challenges present in countries can contribute to the rise of ideological affected by FCV requires increasingly movements and enhance violent extremism. innovative solutions. Discussing the 2030 Illicit financial flows can undermine state sustainable development agenda and how institutions, and prolong existing conflict. the WBG will remain “fit for purpose,” the Executive Directors and management have acknowledged that not only will the proportion THE FCV AGENDA: A CALL FOR ACTION of fragile and conflict-affected states in Sub- Saharan Africa countries continue to rise,7 Building on the ‘World Development Report middle-income countries and higher income 2011: Conflict, Security, and Development,’ countries will also be adversely affected by the WBG pointed policy makers and the spillovers from fragility. MICs will harbor much international community at large in new of the growing proportion of moderately poor; directions, notably by calling attention to the an increasing number of such countries—those close link between security and development, with under-developed institutions or suffering to the central role of institutional legitimacy for from economic, climate or political shocks— stability, and to the need to invest in citizens’ have already become fragile. Therefore, security, justice, and jobs in order to reduce action is required in both LICs and MICs violence. And yet, since the WDR 2011, the to reduce poverty. 7 Rethinking Fragility, Implication for World Bank Group engagement on Fragility, Conflict and Violence, 2015. 4 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations FIGURE 4: MIDDLE-INCOME COUNTRIES AND CONFLICT Source: FCV Group, WBG 2018. Introduction 5 DEFINING FRAGILITY: ACKNOWLEDGING THE MULTIDIMENSIONAL NATURE OF FCV The understanding of fragility and its impact on development outcomes has evolved considerably in recent years. There is a growing consensus that the challenges posed by fragility, conflict, and violence are widespread and not confined to lower income countries with weak capacity and poor governance. Fragility risks – be it violence, conflicts, or instability – also concern middle-income countries. The evolving new view acknowledges that fragility (a) has multiple dimensions not limited to low income countries or state institutions; (b) potentially extends beyond national borders or manifests in pockets within national borders; and (c) is associated with patterns of risks that need to be identified and managed to be more effective at preventing negative outcomes such as violence, conflicts, and instability. Fragility results from the complex interplay of weak societal institutions confronted with internal and external stresses. In 2006, the WBG compiled the first iteration of the Harmonized List of Fragile Situations. In 2013, it defined fragile states as “countries facing particularly severe development challenges such as weak institutional capacity, poor governance, political instability, and frequently ongoing violence or the legacy effects of past severe conflict.” And yet, this approach to defining FCS fails to capture the pervasiveness of fragility across the globe and thus limits its ability to identify risks early on. In its most recent strategy for Addressing Fragility and Building Resilience in Africa, the African Development Bank defines fragility as a “condition of elevated risk of institutional breakdown, societal collapse, or violent conflict.” The OECD defines fragility “as the combination of exposure to risk and insufficient coping capacity of the state, system and/or communities to manage, absorb or mitigate those risks”. Its fragility framework is built on five dimensions of fragility – economic,environmental, political, societal and security – and measures each of these dimensions through the accumulation and combination of risks and capacity. The WBG will adopt an expanded approach to identify and address fragility beyond countries on the harmonized list. This change builds on analytical work carried out by the WBG to improve its metrics for identifying fragility, conflict and violence and to identify countries at risk of conflict. It also reflects the WBG’s recognition that a risk-based approach to conflict can promote earlier interventions and help build institutional resilience and support mitigation of conflict drivers and internal and external stresses. 6 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations 2 billion people live in countries where development outcomes are affected by fragility, conflict, and violence. By 2030, more than 60% of the global poor will live in fragile and conflict affected situations. Forced displacement is a developing world crisis. 93% of refugees and internally displaced live in developing countries, originating from the same 10 conflicts since 1991. Conflicts drive 80% of all humanitalian needs. Photos: Sierra Leone; Dominic Chavez, Syria; Dominic Chavez, Nepal; Aisha Faquir, Afghanistan; Graham Crouch, All Photos ©World Bank Section 1 7 8 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations Section 1 The Renewed WBG Strategic & Operational Approach to Scale up Impact in Fragile and Conflict-Affected Situations Fragility, conflict and violence (FCV) is on threaten progress towards the UN’s Sustainable the rise in low- and middle-income countries, Development Goals (SDGs) and, if unchecked, with potential global spillover effects. could push more people into extreme The growing interdependence and volatility of poverty. In response, under the record political, economic, and social systems across IDA18 replenishment of $75 billion, core IDA the world has also made FCV increasingly allocations for FCV countries are doubling. complex to analyze and difficult to address. Globally, trends such as climate change, Maximizing the impact of the World Bank demographic shifts, new technologies, illicit Group in fragile and conflict-affected financial flows and transnational ideological situations entails both the full strategic movements are significantly shaping fragility alignment of the WBG and a strong alliance dynamics at country and regional levels. to implement across the Regions/CMUs, Understanding these dynamics better and Global Practices, and Global Themes. It also how various risk factors interact is crucial. requires that IBRD/IDA delivers in tandem with Simultaneously, many of the new conflicts are IFC and MIGA, to enhance effectiveness and about grievances around exclusion, underlying provide innovative solutions to complex global, the importance of the development approach national and local challenges that are affecting and its central role in the prevention of violent both LICs and MICs. Budget allocation for conflicts. In this regard, the WBG – and the FCV engagement increased by 5 percent in international community at large – must be FY17 and 19 percent in FY18, in terms of Bank sensitive to the underlying triggers of FCV budget (BB) for IBRD/IDA operations in FCS and focus on preventive actions in addition countries.8 Moreover, the IDA18 Private Sector to mitigating adverse outcomes. Window has a particular focus on supporting increased private investment in FCS. Fragility, conflict and violence is at the front and center of the WBG’s business, and is Building on a renewed understanding of among the most pressing challenges as we fragility, the WBG is aligning its strategic strive to achieve the WBG’s twin goals. approach and operational tools and Conflict reduces global GDP growth by an structuring its interventions along five estimated of two percentage points per year, priorities: (i) operationalizing the differentiated and by 2030 over half of the extreme poor and risks-based approach; (ii) scaling up are expected to live in settings characterized the response to forced displacement; (iii) by FCV. Achieving the twin goals therefore implementing the humanitarian-peace- demands working effectively as one WBG development nexus, including through to succeed in these most difficult of strengthened partnership with the United operational settings. Nations and non-governmental organizations; (iv) maximizing financing, catalyzing private IDA18 precisely responds to heightened sector development, and optimizing global challenges and escalating risks. innovative financing; (v) enhancing While poverty rates have declined, extreme operational effectiveness of the WBG by poverty remains concentrated in challenging improving staffing, enhancing flexibility environments. Climate change and FCV and leveraging knowledge. 8 Figures from the Forward Look. Section 1 9 FIGURE 5: FRAGILITY SPANS ACROSS LOW-INCOME AND MIDDLE-INCOME COUNTRIES IDA IBRD 1,000,000 eC Active Conflict & High Violence 100,000 Violent Deaths (2011-2015) 10,000 1,000 Fragile 100 Potential P n al Risks sk Other: IBRD/IDA countries above 3.2 CPIA and below 10,000 deaths 10 1.5 2 2.5 3 3.5 4 4.5 5 CPIA Source: World Bank Group, FCV Group, 2017. Note: As per WBG, Country Policy and Institutional Assessment (CPIA) score below 3.2 refers to countries that present weak policy and institutional frameworks. 1. ADDRESSING FRAGILITY BY Historically, the WBG has mostly focused OPERATIONALIZING THE DIFFERENTIATED on operations such as Disarmament, AND RISK-BASED APPROACH Demobilization, and Reintegration (DDR), addressing the impact of gender-based The record IDA18 replenishment places an violence (GBV), or the return to essential state important strategic focus on the WBG’s functions. More recently, it has scaled up its work in Fragile and Conflict-affected efforts to tackle the formidable challenge of Situations (FCS), notably by recognizing forced displacement. But the challenge now is that fragility exists beyond countries on the to further improve the Bank reaction to crisis Harmonized List, as well as by emphasizing situations, and to invest effectively in conflict a risk-based approach and making conflict- prevention and resilience, as documented in and fragility-risk reduction a top priority. the new flagship report on conflict prevention Addressing challenges of conflict and fragility titled Pathways for Peace, Inclusive Approaches requires a differentiated approach tailored to to Preventing Violent Conflict. the circumstances of each country. There is marked heterogeneity across FCS, with varying The challenge now is to further improve causes and manifestations of fragility as well the Bank’s capacity not only to react quickly as in levels of conflict and violence. Ways of to crisis situations, but to invest effectively mitigating and eventually overcoming risks in conflict prevention and resilience based of fragility and conflict will thus have to be on comprehensive analysis of the multi- context-specific. dimensional FCV risks that could drive a country into violence—before crises erupt. The WBG has proven its ability to respond effectively to post conflict situations and address the immediate impact of FCV. 10 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations FIGURE 6: IDA COMMITMENTS TO FCS COUNTRIES, BASED ON ANNUAL FCS LIST Source: LoanKiosk. Note: IDA17 includes $100 million to Lebanon, an IBRD FCS country. IDA18 figures reflect estimated resources for FCS.Actual amounts will depend on actual allocations of core IDA resources and the allocation of non-core resources across countries dependent on needs determined during the replenishment period. The new policy commitments under IDA18 “Fragility assessments were useful for the also build the case to operationalize this preparation of SCD/CPFs in fragile situations risk-based approach, notably by: ensuring (…) Overall, the SCDs and CPFs in this that all Country Partnership Frameworks in sample made good use of available fragility FCS and countries at risk are informed by Risk assessments. Their availability in countries and Resilience Assessments (RRAs), and by with fragile situations may have made it easier undertaking joint Recovery and Peacebuilding for SCDs, CPFs, or CENs to integrate fragility Assessments (RPBAs) with the UN and the within the World Bank Group strategy for EU for countries emerging from conflict to those countries.”9 help governments and national stakeholders prioritize activities to address FCV and Finally, the shift to an enhanced risk-based coordinate international support. Also crucial approach is also structured around access to are increasing operations that support the the IDA’s new FCV Risk Mitigation Regime. self-reliance of refugees and host communities, This is a dedicated vehicle to incentivize and increasing the number of operations that investments in prevention, that will first aim to prevent and address Gender Based allow four eligible countries (Guinea, Nepal, Violence (GBV). As documented in the recent Niger and Tajikistan) to access additional Independent Evaluation Group (IEG) review funding of up to 33 percent of their of the WBG country engagement model: regular IDA18 allocation. 9 W  orld Bank Group Country Engagement, An Early-Stage Assessment of the Systematic Country Diagnostic and Country Partnership Framework Process and Implementation, IEG, 2017. Section 1 11 TABLE 1: THE WBG’S FCV FRAMEWORK SUPPORTS A MORE DIFFERENTIATED APPROACH FCV Situations Description Engagement Strategies 1. Elevated risks • Systemic FCV risks, e.g., economic “Mitigating risks” marginalization, regional imbalances,  isk and Resilience Assessments •R political polarization  onflict-sensitive programming •C Increasing levels of violence • DA18 special risk mitigation allocation •I External stressors, e.g., conflict in •  neighboring countries or impact of climate change 2. Active conflicts or • Sharp deterioration in governance, “Staying operationally engaged” political crises institutional breakdown Emergency operations, including partnering • Rising levels of violence/hostility, coups, • with UN agencies for delivery absence of legitimate government Working with local first responders • Acute instability, failure to control • (civil society organizations and the large parts of territory private sector) Portfolio restructuring • Humanitarian-development-peace initiatives • Support to policy dialogue • 3. Deep fragility • Weak institutions with poor governance “Breaking fragility traps” Significant levels of corruption, weak •  tate and peacebuilding operations •S economic management  aintain delivery of basic services •M Weak and uneven delivery of basic • ncreased staffing and •I public services implementation support Rebuilding the social contract between •  ulti-donor trust funds •M the citizens and the state nvestment climate reforms •I 4. Transition • Peace agreement but continued “Seizing windows of opportunity” security issues Recovery and Peacebuilding • Signs of turnaround with • Assessment (RPBAs) opportunities for reform IDA Turn-Around Regime (TAR) • Economic recovery and • • Humanitarian-development- transformation opportunity peace initiatives Underdeveloped private sector • Include women and youth in transition • processes at national and community levels Increasing IFC-MIGA investment (including • through IDA 18 Private Sector Window) and Public-Private Partnerships (PPPs). 5. Subnational conflicts • Subnational violence or insurgencies “Addressing uneven development” and violence in otherwise stable countries Violence monitoring • Organized crime and interpersonal violence • Territorial management operations • Including high rates of GBV • Portfolio review • Economies distorted by illicit trafficking • Renewing the social contract (jobs, inclusion, • and voice and accountability) Recovery and Peacebuilding • Assessment (RPBAs) 6. Regional conflicts and • Regional conflict systems Regional approaches to FCV and “ cross-border spillovers forced displacement” Fragility due to external stresses, • shocks, or FCV spillovers  evelopment approach to forced •D displacement targeting (i) the forcibly displaced; (ii) host communities; and (iii) those who stay behind  lobal Concessional Financing Facility •G DA18 regional window for refugees/ •I host communities 12 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations FIGURE 7: GLOBAL REFUGEE POPULATION OVER TIME 2. SCALING UP WBG RESPONSE occurred in and prior to 2016.11 Of the 6.9 TO FORCED DISPLACEMENT million new internal displacements by conflict that took place in 2016, most occurred in Sub- The WBG has scaled up its efforts to Saharan Africa – in the Democratic Republic of tackle the formidable challenge of forced Congo there were 920,000 new displacements displacement. While not a new phenomenon, over the course of the year. it has increased in scale and complexity over the last few years. At the end of The drivers of displacement and movements 2016 there were about 23 million refugees of people are increasingly complex. While worldwide: about 5 million Palestinians and disasters, conflict and violence cause a direct about 18 million people fleeing conflicts in and urgent movement of people, slower- Syria, Afghanistan, and Somalia, as well as onset climate change such as drought and Sudan, South Sudan, the Democratic Republic environmental degradation are becoming more of Congo (DRC), Myanmar, Iraq, and Eritrea, frequent and persistent. Data from the Horn among others. The overwhelming majority of of Africa suggests that recurring drought, poor refugees are hosted in neighboring countries, access to services and infrastructure, lack of which are often developing countries with livelihood opportunities and ongoing conflict limited resources to face the crisis. Significant and insecurity converge in a toxic mix that new internal displacement associated with leaves vulnerable people with no other option conflict and disasters takes place every year, but to move.12 In Syria, people are being mainly in low and lower-middle-income displaced internally several times, only to flee countries. By the end of 2016, there were 40.3 the country altogether when they are unable million internally displaced persons (IDPs) as a to find safety, and in Iraq a growing number result of conflict and violence.10 An unknown of people are displaced more than once13 as number remain displaced due to disasters that well. In El Salvador, Guatemala and Honduras 10  ountries with the most people internally displaced by conflict and violence are Columbia, Syria, Sudan, Iraq, Dem. Rep. Congo, C Yemen, Nigeria, South Sudan, Ukraine and Afghanistan. 11 Global Report on Internal Displacement, Internal Displacement Monitoring Centre and Norwegian Refugee Council, 2017.  12  Global Report on Internal Displacement, Internal Displacement Monitoring Centre and Norwegian Refugee Council, 2017. 13 Iraq Humanitarian Overview, UNOCHA, 2016.  Section 1 13 women targeted by gang members say they There is now consensus that addressing moved frequently within their countries before medium-term socioeconomic dimensions going abroad.14 of the crisis is as critical as providing a humanitarian response. The WBG aims to Displacement challenges are increasingly support government-led national programs as urban in nature. Over 60 percent of the well as broader regional initiatives, and to use world's refugees and 80 percent of IDPs live in financing to underpin policy and institutional urban environments.15 The forcibly displaced reforms. Its efforts are complementary – both IDPs and refugees – are among a to, but distinct from, both short-term city’s most vulnerable populations. Many emergency responses and the rights-based experience insecure land and property rights, protection agenda. They are not aimed at over-crowding in slum-like conditions, severe “compensating” refugee-hosting countries, economic constraints, crime and violence, food or at substituting for other forms of assistance, insecurity, and forced evictions. Over time, but at helping better manage a difficult the displaced can face barriers to accessing situation. They are also part of a broader set of services or employment opportunities, WBG engagements, which includes efforts to especially if they lack legal documents, and mitigate the risks and impacts of conflict, build they are at greater risk for arbitrary arrest, resilient communities, facilitate post-conflict detention, and eviction. The impact on recovery, support poverty reduction and children and adolescents is particularly grave shared prosperity in host countries, and in terms of interrupted education; the median increase engagement in support of age of Syrian refugees is 16 in Lebanon, internally displaced persons (IDPs). and 17 in Jordan. Women and girls are also disproportionately impacted and at higher The IDA regional sub-window on refugees risk of gender-based violence including rape, and host countries was created primarily to domestic violence, interpersonal violence, respond to the demands from refugee-hosting sexual violence, exploitation, child marriage, countries for development assistance and and human trafficking.16 Given that the world’s concessional financing from the WBG to help urban population is set to double by 2050, advance policy and institutional reforms with a displacement will continue to have an urban view to enhancing the management of refugee dimension and contribute to urbanization situations. It provides a dedicated source as one of the 21st century’s most of funding for host governments that are transformative global trends.17 struggling to meet the needs of both refugees and their host communities by financing In response to the forced displacement projects to benefit them, and aims to: crisis, the WBG’s objective is to help mitigate the medium-term negative Mitigate the shocks caused by an influx of • development impact of forced displacement refugees and create social and economic on both refugees, IDPs and their hosts (and development opportunities for refugees to maximize positive impacts where possible). and host communities alike; 14 Women on the Run: First-Hand Accounts of Refugees Leaving El Salvador, Honduras, Guatemala and Mexico. UNHCR, 2015. 15 UNHCR 2017. Cities of Refuge in the Middle East. Bringing an Urban Lens to the Forced Displacement Challenge. World Bank Policy Note, 16  September 2017. 17 Internal Displacement Monitoring Centre, 2017. 14 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations • Facilitate sustainable solutions to enhance refugee self-reliance, expand access protracted refugee situations, through the to third-country solutions, and support sustainable socio-economic inclusion of conditions in countries of origin for return refugees in the host country and/or their in safety and dignity. It calls upon the UN return to the country of origin. High Commissioner for Refugees (UNHCR) to apply this framework to particular situations, Strengthen preparedness for increased • in close coordination with governments and or potential new refugee flows. key stakeholders and to develop a ‘Global Compact on Refugees’ to be presented to the Under the preparation and implementation 2018 UN General Assembly. In this context, of this sub-window, the WBG is engaged there has been increasing demand from host in a strong partnership with UNHCR, countries, UN partners and humanitarian operationalizing the humanitarian- agencies, and other stakeholders for increased development nexus. WBG engagement. Scaling up the WBG response to refugee In a joint effort with six other multilateral crises also requires providing support development banks (MDBs), the WBG is to middle-income countries. While MICs enhancing its impact on forced displacement currently host roughly six million refugees, they and economic migration. A joint paper on struggle to access financing at concessional the development dimensions of economic interest rates, making it difficult to afford the migration and forced displacement was costs associated with an influx of refugees. submitted at the G7 Ministerial Meeting on The Global Concessional Financing Facility Finance in May 2017, laying out a strategic (GCFF) was launched in 2016 by the UN, WBG framework for enhanced MDB coordination and Islamic Development Bank (IsDB) as an in the context of a broader international innovative platform aimed at bridging the effort on the two agendas. The collaboration humanitarian-development nexus by providing rests on a three-pronged approach, which concessional loans to refugee hosting MICs. includes: a) the development of a common It provides an open platform that leverages framework for action; b) information sharing donor resources (each $1 in donor grant on planned activities to identify clear areas unlocks about $4 in concessional loans). Within for collaboration; and c) creation of a the first year of its launch, the GCFF unlocked coordination platform for increased operational more than $1 billion in concessional financing collaboration and to harmonize MDB policy to support refugees and host communities dialogue in priority countries. The Platform in Jordan and Lebanon. initiative received strong endorsement from Several international initiatives are also MDB leaders and senior G7 officials at a underway to enhance the management high-level event during the 2017 WBG-IMF of refugee situations. The 2016 New York Annual Meetings, and a series of working-level Declaration for Refugees and Migrants sets meetings have since taken place to elaborate out a Comprehensive Refugee Response the structure and specific activities to be Framework (CRRF), which calls for specific supported by the Platform. actions to ease pressure on host countries, Section 1 15 3. DEEPENING THE HUMANITARIAN- and Somalia. A jointly produced Security DEVELOPMENT-PEACEBUILDING NEXUS: Sector Expenditure Review Sourcebook THE “NEW WAY OF WORKING” has also been produced and is offering guidance and various approaches to Frontier issues for WBG engagement on security sector reform. FCV in LICs and MICs also entail remaining engaged in situations of active protracted  umanitarian-Development nexus: The •H and recurring conflict, and to operationalize WB-International Committee of the Red the humanitarian-development-peace Cross (ICRC) collaboration on Somalia nexus. This requires the WBG to work across famine response, and WB-UNICEF/ the humanitarian-development continuum, in WHO partnership in Yemen to deliver tandem with the United Nations, MDBs, EU and basic services, are recent examples regional organizations as well as humanitarian of the growing UN-WB collaboration, actors. Developing a comprehensive and collaboration with non-traditional approach and coordinated response entails stakeholders, to deliver results in FCV complementing the work of the humanitarian contexts. There is significant interest also and peacebuilding partners by addressing root from bilateral partners in how to move causes including drivers of fragility, and helping forward in operationalizing a humanitarian- the affected countries build social protection development-peace (HDP) approach at systems and resilient institutions. By stimulating country level, potentially building on the markets and livelihoods and strengthening early UN-WB experience in this area. the longer-term resilience agenda, while addressing immediate life-saving priorities, the  uropean Commission: The First EC- •E WBG will also increase its impact by leveraging WBG Deep Dive in June 2016 was a strategic partnerships. commitment to strengthen strategic dialogue, coordinate programming, and The WBG is leveraging key partnerships and/or joint financing and operational solutions in initiatives to increase impact, notably through: FCV contexts. A joint action plan is under implementation. Areas of cooperation The UN-WB Partnership Framework • encompass partnering on risk monitoring for Crisis Affected Situations is a and analysis; building on the European framework that provides foundational Early Warning System; strengthening principles and operational commitments the use of RPBAs to develop a coherent for a more strategic collaboration, notably approach to reconstruction; blending for on the ground. A joint UN-WB work plan new financing solutions. to support the operationalization of the commitments at country level is  7+: A Memorandum of Understanding •g under development. for collaboration between g7+ and the WBG was signed in October 2016, which Development-security nexus: In partnership • includes: (1) implementing the New Deal with the United Nations Department for principles and SDG goal 16; (2) supporting Peacekeeping Operations, the WBG has the mobilization of effective development supported the joint thematic analysis/ financial resources for countries affected implementation of public expenditure by FCV; (3) supporting private sector reviews for the security sector, in development; (4) supporting Fragile-to- particular, the partnership informed Public Fragile Cooperation. Work is underway Expenditure Reviews in Liberia to operationalize the commitments made 16 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations under the MoU. In addition, the WBG and Yemen. The lessons from the pilots will further g7+ are continuing high level dialogue to inform UN-WB’s knowledge on the new way discuss the priorities and challenges of the of working and point the way forward for g7+ member countries. further operationalization of the humanitarian- development-peace nexus. To tackle the challenge of fragility and forced displacement through collective action, the Humanitarian-Development- 4. MAXIMIZING FINANCING AND Peace initiative (HDPI) was developed as PROMOTING PRIVATE SECTOR a joint effort by the UN and the WBG to DEVELOPMENT implement a ‘new way of working’ towards collective outcomes, and align strategies and The 2015 Development Committee Paper operations in situations of protracted crisis “From Billions to Trillions: Transforming at country level. The HDPI emerges from a Development Finance” highlighted the need commitment made at the world humanitarian to leverage public and private investments summit in 2016 to carry out country level to achieve the SDGs. The argument made is pilots on operationalizing the humanitarian- that concessional financing should be used as development-peace nexus. The initiative a strategic levier to crowd in additional finance. builds on the need to respond to complex The approach laid out for MDBs is to ramp up risks in complementary ways and the growing assistance for domestic resource mobilization recognition that humanitarian, development, and efficient public spending, and catalyze and peacebuilding efforts are complementary private investment. For the World Bank Group, and need to reinforce each other, to respond this has led to committing to the agenda of to volatile situations around the world. In its Maximizing Finance for Development. This first phase, collaboration includes catalytic agenda complements efforts to improve the support towards sharing data, joint analysis efficiency and effectiveness of public financing and assessment of needs, as well as aligned where this is the optimal solution, to bolster multi-year planning. Pilot countries include domestic resource mobilization, to reduce the Central African Republic, Cameroon, illicit financial flows and promote Guinea Bissau, Somalia, Sudan, Pakistan, and innovative financing. MAXIMIZING FINANCE FOR DEVELOPMENT Based on the Addis Ababa Agenda for Action, the WBG has embarked on an effort to help countries maximize finance for development, and to do so responsibly without pushing the public sector into unsustainable levels of debt and contingent liabilities. Introducing the concept of the “Cascade Approach,” the WBG is systemizing its commitment to Maximizing Finance for Development (MFD). This will entail pursuing private sector solutions where they can help achieve development goals, and reserving scarce public finance for where it is most needed. In operational terms, the WBG will test whether a project is best delivered through sustainable private sector solutions (private finance and/or private delivery) while limiting public liabilities, and if not, whether WBG support for an improved investment environment or risk mitigation could help achieve such solutions. Section 1 17 Developing a robust private sector is DA18 established the new IFC-MIGA •I essential for driving development in FCS Private Sector Window (also referred to markets. The vast needs of populations as the IDA PSW) to support direct private living in these countries can only be met investment in IDA-only, non-gap countries, if private enterprises are able to grow, with a focus on FCS. This $2.5 billion window create employment, provide the goods and will catalyze private sector investment and services people need to improve their lives, will focus on the mobilization of private and generate the tax revenue that allows investments that generate positive results governments to provide essential services. and create markets in the most challenging Accordingly, IFC, along with MIGA as well environments, through collaboration among as the joint World Bank-IFC Finance and IDA, IFC and MIGA to scale up their work. Markets and Trade and Competitiveness Successful pioneering investments can help Global Practices, continue to advance their reduce investor risk perceptions and open efforts to stimulate private sector growth and up these countries to more domestic and job creation. IFC continues to increase private foreign capital. investment in FCS through its own-account investments and mobilizing other investors, The availability and the strategic use of trust including through public-private partnerships fund resources (grant funding) are critical (PPPs); MIGA’s political risk insurance, for and allows the Bank to provide catalytic private infrastructure investments, is particularly support for FCV as well as to finance seed applicable for FCV settings. Additionally, the interventions in non-IDA eligible countries joint Global Practices work with governments (e.g. Syria as well as MICs) and countries to stimulate private sector activity through in arrears (e.g. Somalia, Zimbabwe). The regulatory reforms and other public-sector trust fund resources support data gathering initiatives, and IFC is engaging various Global and analysis, country specific trust funds, i.e. Practices on sector reforms to unlock latent providing early seeding funding and technical opportunities. assistance (TA) for establishing multi-donor trust funds (MDTFs), and joint delivery Two innovative funding tools have been platforms through international partnerships. recently established to stimulate further investment in the private sector in FCS: Existing turnaround regime (TAR): A new exceptional regime for countries facing “turn- IFC’s Creating Markets Advisory Window • around” situations was adopted in IDA17 (CMAW) is designed to help IFC respond and will continue in IDA18. All future cases to the increased demand for advisory warranting the delivery of exceptional IDA services that are needed to develop support will be addressed within this new market opportunities and increase the regime, including future post-conflict and number of investment-ready projects. A re-engaging countries as well as countries three-year funding window of up to $213 that have not experienced significant levels of million, the CMAW launched in July 2017 conflict or accumulated arrears but face a “turn- to support project preparation and other around” situation. A “turn-around” situation is capacity-building activities, and to facilitate a critical juncture in a country’s development implementation of the IDA PSW (mentioned path that provides a significant opportunity below). It will fund three types of initiatives: for building stability and resilience in order (1) Scoping/Diagnostics; (2) Client/Project to accelerate its transitioning out of conflict Development; and (3) Market or in making significant political changes. By Creation Projects. 18 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations providing countries with timely and significantly The Bank is on track to meet IDA18 enhanced levels of IDA financing, the TAR commitments on staffing, with the initial enables countries to tackle the underlying target completed (50 GE+ additional Bank staff causes of fragility while delivering the rapid for IDA countries by September 2017). The results that have been shown to be essential Bank is increasing its global footprint in FCV, for solidifying the transition out of fragility. with enhanced GP and field presence in FCS, The approach has proven to be effective in and is on track to meet the target of 150 total Madagascar where IDA’s commitment helped expansion by the end of IDA18 period. The to crowd in nearly $8 billion in additional Bank has designed key principles for minimum donor and private sector financing. The FCV presence, including the need for adequate increase in IDA resources enabled the WBG to staff for project support and coordination/ focus its support on a few priority areas – tax program, deployment of fiduciary staff and administration to increase domestic resources, economists, or multi-sector GP staff. The Bank the energy sector, and enhanced education, has also committed to an overall increase of nutrition, and health services at the community facetime, annual monitoring of time spent level – and set the stage for a more rapid on the ground by resident staff, consultants transformation of those sectors. In the Central and visiting missions in IDA-eligible, blend African Republic, the TAR enabled the Bank countries, as well as West Bank and Gaza to increase tenfold resources available to the and Syria, on Harmonized List. The Facetime country for its transition and to successfully indicator for FY17 was up by 8.5 percent. tailor programs to accompany the peaceful post-electoral process. The Employee Value Proposition is structured around career and talent management, compensation and rewards, safety, wellbeing 5. ENHANCING WBG OPERATIONAL and corporate support and is essential to EFFECTIVENESS attract, retain and develop strong staff for FCV posts. It entails better career and talent Delivering on IDA18 also requires stepping up management, as well as improvement of the Bank’s effectiveness in FCV settings. This compensation, rewards and contracting with entails enhanced staffing as well as continued new benefits underway (including the Hazard strengthened focus on security and facilities. It and Fragility pay – just made effective), and also needs further efforts to assess and adapt more targeted training. operational policies and instruments, and make the most of existing flexibility. ‘AGILE IN FRAGILE’: The WBG is constantly reviewing how to adapt procedures to Improved effectiveness includes provide adequate flexibility in fragile strengthening staffing for FCV contexts by settings. WBG senior management is strongly expanding field presence and enhancing encouraging agile approaches in fragile the employee value proposition (EVP, contexts, wherever possible. Key recent ref. Annex). Specific commitments were improvements to WBG operational policies made under IDA18 to increase the Bank’s and procedures should allow us to be more staff headcount in FCV settings. Efforts effective in the way the WBG will respond to to strengthen EVP aim to attract, retain FCV situations. Recent innovations include: and better support staff in FCV contexts (i) the Multi-phased Programmatic Approach through enhancing career and professional (MAP) to allow the structuring of long and development, rewards, recognition, and complex engagements as a set of smaller, corporate services and resources for staff in the field. Section 1 19 HOW WILL STAFF BE SUPPORTED TO WORK IN FCV COUNTRIES? World Bank management has committed to adding 50 professional-level positions for IDA FCV settings, with a target of 150 additional recruitments for all FCV staff by the end of the IDA18 period. The Bank is on track to increase GE (professional) level staffing in line with IDA18 targets and face time is on an upward trend. Filling the required additional positions will ensure that all FCV country offices have a staff member to back up the Country Manager or Representative, and better address the increased demands of FCV location, in terms of dialogue, coordination, partnerships and portfolio support. Other explored ideas encompass facilitating next-assignment planning to ensure staff have more certainty and opportunities when returning from the field, and launching a range of in-person and online training to give younger staff the skills and exposure they need to serve effectively in fragile settings. HOW WILL STAFF BE INFORMED AND KEPT UP-TO-DATE ON THESE DEVELOPMENTS? Specific training programs have already started and are planned to foster an empowered team of staff with access to reference materials and capacity to analyze the specific FCV context to formulate and support the implementation of fit-for-purpose solutions. The objective is to provide staff with key policy, operational and strategic guidance in areas critical to working in the unique circumstances of FCV and to build the necessary staff skills to respond to such challenges. The Core Curriculum is composed of: (i) an FCV 101 eLearning course covering basic foundational FCV concepts, approaches, and tools; (ii) TTL Trainings; and (iii) clinics and in-depth technical trainings. These clinics are the opportunity for country teams to share their on-the-ground experience and to develop a community of practice. The suite of training and learning events are organized in partnership with units across the WBG to make the most of all knowledge produced in the WBG on FCV. In addition, the FCV Operations Portal is intended to be a key component of the commitment to help staff deliver more effectively. This portal will provide the latest policy, guidance and approaches for staff working in FCV environments. This will include areas such as the new FCV risk mitigation regime, financing tools, but also link to policies, HR, or security. The Portal will be operational in March 2018. linked operations (defined as phases) under capacity constraints by deferring several of one program, to allow for a more adaptive the preparation tasks, thereby allowing teams approach, where phases can adapt to changing to respond faster to FCV contexts; (iii) the use circumstances and can be informed by of Catastrophe Deferred Down Option (CAT lessons learned from the initial experiences; DDO) under Development Policy Financing has (ii) condensed procedures for preparation for now been extended to cover IDA countries. Situations of Urgent Need of Assistance or CAT-DDO can also be used for public health Capacity Constraints, to increase flexibility emergencies, providing liquidity not only to respond to situations of urgent need or when a health outbreak escalates but also at 20 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations an early stage to prevent an escalation; (iv) and streamlined restructuring to speed the response to clients and increase adaptability of operations. Improvements to WBG operational policies and procedures also include: Processing of Operations (under OP10.00 para 12): There are condensed processing instructions for Investment Project Financing (IPF) operations in situations of urgent need of assistance or capacity constraints. The normally sequential stages of identification, preparation, and appraisal may be consolidated. The decision to authorize negotiations may be taken after a single consolidated review of the complete negotiations package. There are accelerated business standards with shorter turnaround times for FCV operations (three days, rather than five days for normal operations). Safeguards requirements that would normally be required before project appraisal may be deferred into the implementation period. If deferred, the type, timing of, and responsibility for safeguards instruments is governed by a simple environmental and social action plan (ESAP) which is annexed to the PAD. Project Preparation Facility (PPF): In January 2017, the Board approved an increase in the PPF commitment authority from $290 million to $750 million, as well as an enhanced scope to allow for a programmatic approach to project preparation. Preparation advances (PAs) can be used for preparation and limited implementation activities for an IPF project, Development Policy Financing (DPF) or Program-for-Results (PforR) operation. PAs are available for both IDA and IBRD countries, and are made on the same terms as the anticipated IBRD loan, IDA credit, or IDA grant. For FCV countries, the maximum PA amount is $10 million. PAs are approved by the Country Director. With the new programmatic Section 1 21 approach, a single PA can be used (i) to to allow for quick response. The creation of prepare multiple projects; (ii) for pipeline positive lists of goods to be financed in order development, identification, and prioritization; to achieve Project Development Objectives and (iii) for cross-cutting core capacity allow for a quick institutional response. To building in operationally critical areas like support the shift towards prevention, the financial management (FM), procurement, and Bank is committed to enhancing the use safeguards. The Operations Policy and Country of Contingent Components in investment Services Vice Presidency (OPCS) is developing operations, as appropriate and for guidance on the PPF overall and especially on situations where analysis suggests the modalities for the programmatic approach. possible risks which could be addressed Instructions for processing a PA can be found in through the existing portfolio. the IPF Processing Instructions. Procurement: The Procurement Framework Project Design: Owing to fluidity of that became effective in July 2016, provides developmental challenges in FCV flexibility and simplification in regard to environments, the Bank has allowed for the Procurement in Situations of Urgent Need of inclusion of contingent components in the Assistance or Capacity Constraints and greater design of projects which are fully funded delegation of procurement decisions to staff on or designed as contingent windows—or a the ground. The framework also provides for combination of both. In cases of emergencies, Hands-on Expanded Implementation Support funds can be reallocated to this window from in low capacity situations. The roll out of the other components in the shortest time possible new procurement framework is accompanied 22 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations by training and outreach to operations staff. WB-UN Collaboration: Centralized support During an emergency or a crisis, procurement has been set up to bring together experts needs to be fast, flexible and appropriate for across the Bank to provide one stop advice and the operational context to effectively deliver hands on support to task teams working with the goods, works and services required to UN agencies in Bank operations. This global address the situation on the ground. These support team is facilitating and supporting the situations may require forgoing standard implementation of partnership commitments. routine procurement processes and use Standard agreement templates for the use by of reactive, accelerated and expedited Borrowers have been developed with the key procurement arrangements that maintain UN agencies operating in FCV countries, and appropriate fiduciary assurance. The World operational clinics are being delivered to Bank Bank’s Procurement Framework is predicated staff and to UN agencies. Training is planned on a fit for purpose approach which enables for harmonizing policy requirements that apply the Bank to customize procurement methods to engagement of UN agencies across different and approaches to suit the operational context, financing modalities and, in particular, for the relevant market’s dynamics, and the increasing flexibilities in issuing direct grants capacity to reduce the burden on borrowers, to UN agencies. mitigate risks more effectively, and help deliver development results more efficiently. Salient Mandate and authorizing framework: Staff features of the new framework include the guidance notes that clarify and explain the possibility for the Bank to, at the request of Bank's mandate and authorizing framework in the Borrower, provide Hands-on Expanded FCV situations are now available, with clinics Implementation Support (or HEIS), the use and workshops on these topics. In parallel, of Alternative Procurement Arrangements discussions are ongoing on the need for an (APA) and the possibility to use the framework over-arching FCV policy, possibly through an agreements with partner UN Agencies. Flexible update to OP 2.30, Development Cooperation use of Framework Agreements including use and Conflict. While there is some interest of Borrower’s existing Framework Agreement, in adding ‘fragility’ and ‘violence’ to the use of the Bank’s Framework Agreement with coverage of OP 2.30, this could be a long a UN organization, and use of Framework process requiring broad consultation and Agreements for goods, works, consulting and considerable commitment of resources. OP non-consulting services. 2.30 ‘as is’ continues to provide a sufficiently broad framework within which we can work in Financial Management: The financial countries where there is no government. management framework complements the procurement framework with flexibility in funds disbursement arrangements and options to defer fiduciary assurance requirements, while institutional strength is built in low capacity situations. Section 1 23 24 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations 2.1 Section 2 Delivering Across the World Bank Group 2.1 THE VALUE PROPOSITION OF THE FCV GLOBAL THEME GROUP: ALIGNING TO IMPLEMENT, INNOVATING TO DELIVER In response to the critical development tools to help operational teams embed challenges posed by fragility, conflict, and a fragility lens in Systematic Country violence, the FCV Group is stepping up its Diagnostics (SCDs), country programming, efforts to facilitate comprehensive solutions and operational design. It also means and coordinated responses across the WBG helping teams place greater emphasis on and beyond. The FCV Group’s primary mission innovative operations that directly tackle is to provide support that enables CMU and drivers of FCV to prevent an outbreak of GP teams to deliver effective operations in FCV fragility-driven crisis upstream or prevent settings. To this end, the Group offers analytical its recurrence. tools and knowledge products, helps develop and deploy new financing mechanisms, and Addressing fragility challenges requires 2.  leverages strategic partnerships, working deploying innovative financing: For both in close cooperation with UN agencies and LICs and MICs, the FCV Group develops stakeholders. Ultimately, the FCV Group and deploys tailored financing solutions seeks to catalyze innovative solutions that put for public sector activities. Forced people and places impacted by fragility on displacement provides a key example, the path to ending poverty. It also works in as host governments are reluctant to partnership with MIGA as well as IFC’s FCS/IDA use scarce resources for non-nationals. Coordination Unit and its FCS Africa Program Providing additional and/or concessional to engage a private sector perspective into its financing helps change the existing knowledge sharing and thought leadership. calculus. The FCV Group develops, manages, and/or supports country The value proposition of the FCV Group is and task teams in tapping into funding centered around four pillars: specifically targeted at fragility challenges. In addition, the Group is leveraging Enhancing operational impact in 1.  enhanced partnerships and the strategic contexts of fragility: Development refocusing of FCV Trust Funds to increase challenges in FCS are unique and require the impact of financing tools. tailored approaches and specialized support to solve. The FCV Group is Pivoting to prevention: Building on the 3.  stepping up its assistance to provide the joint UN-WB flagship report, Pathways programming and support country teams for Peace, the FCV Group is pioneering need. This support includes helping efforts to help countries shift from country and GP teams trigger a paradigm crisis response to prevention through shift from understanding risks to building developing inclusive platforms for risk-informed programs. This shift entails collective risk monitoring and prioritization offering strategic guidance and analytical at the country and international level, Section 2 25 and integrating peace and security operationalize the nexus between humanitarian frameworks with development planning and development. Seizing windows of and implementation at the country and opportunities to address global challenges regional level. Innovations like the Global such as with the IDA18 regional sub window Crisis Risk Management Platform also on refugees and host countries are central leverage synergies on risk mitigation and to pushing the fragility agenda forward. crisis management to provide solutions Implementation will require an enhanced focus across the spectrum of interrelated risks on supporting host communities and lagging and vulnerabilities facing developing regions, regional and country-level approaches countries today. and promoting socioeconomic inclusion. 4.  Shifting the business paradigm: Equally critical, FCV stresses are shrinking Leveraging partnerships and enhancing the space for development aid. Operating FCV readiness of WBG staff: Through successfully in insecure environments requires new partnerships with public and private enhanced supervision tools and technologies stakeholders, the FCV Group is increasing to ensure timely and comprehensive support the bandwidth and effectiveness of the for the beneficiaries most in need, including WBG’s engagement in fragile contexts. In in remote places where staff access is severely parallel, the FCV Group aims to position constrained. Practical solutions like Third the WBG as a leading knowledge source Party Monitoring (TPM) to provide CMUs and on fragility issues globally and build GPs with appropriate and timely support are the capacity of staff to understand and being expanded. Innovative solutions with address the complex challenges in FCV the use of smart ICT tools and geo-enabling settings. Concretely, the Group is also methodologies are being rolled out to supporting efforts to sharply increase the operate in conflict but also to promote presence of staff on-the-ground. prevention and preparedness. How to achieve success? The magnitude of the challenges linked to fragility requires 1. ENHANCING OPERATIONAL IMPACT the WBG to be innovative, and do business IN CONTEXTS OF FRAGILITY differently to be effective in bending the curve of fragility. In the context of the doubling of This pillar strives to develop new tools to IDA core resources for FCS, the number one design risk-informed programs. Analytics priority is to deliver effectively and target play an essential role to ensure projects are FCV factors to ensure better results. This implemented with an FCV sensitive approach, report highlights innovations at strategic and and to strengthen the quality of projects. With operational levels, and showcases solutions an improved understanding of risks, the FCV across the WBG, including in terms of new Group is working with operational teams to partnerships to improve impact on the apply a fragility lens in their efforts to promote ground and enhance the effectiveness development outcomes in FCV settings. of WBG programs. Concretely, and to inform this engagement, the FCV Group provides a range of analytical For the FCV Group, success will entail products to operational teams, such as Risk developing strong and streamlined analytics, and Resilience Assessments (RRAs), Recovery early stage interventions to increase and Peacebuilding Assessments (RPBAs), the prevention and preparedness, ultimately new Global Risk Scan, global analytical work to allowing for Bank interventions to shift from inform operations and cutting-edge research crisis response to risk management, and to on Preventing Violent Extremism. 26 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations Tools such as the Risk and Resilience through both the window and the IDA18 Risk- Assessment (RRA) serve as the basis for Mitigation Regime. The current challenge is country engagements and inform Systematic to devise a system that allows more effective Country Diagnostics (SCDs) and Country monitoring of risk factors to tackle fragility at Partnership Frameworks (CPFs). RRAs aim to the regional, sub-national and local levels, as identify the multidimensional risks that worsen well as their potential spillovers. a country’s vulnerabilities to economic, social, political and governance breakdown and The FCV group aims to deliver more support propensity for organized violence. The FCV in: (i) mainstreaming sensitivity to FCV across Group completed 50 Fragility Assessments/ the portfolio, ensuring that WBG activities RRAs between FY12 and FY17, 30 of them “do no harm” in FCV environments and in IDA countries. In the last 12 months, RRAs help projects target conflict-affected people have been underway or completed in 100% wherever possible; (ii) incorporating activities of IDA FCS and risk countries. In addition, the that address the direct outcomes of FCV, Recovery and Peacebuilding Assessment including gender disparities and vulnerabilities (RPBA) help to identify, prioritize, and in FCS, accelerating reconstruction and sequence recovery and peacebuilding activities recovery, spurring private sector development, and coordinate planning and implementation. and supporting effective local governance and RPBAs and similar processes have been used macro-fiscal management; and (iii) advancing in response to subnational conflicts in Mali, programming that tackles the drivers of FCV Nigeria, and Ukraine; to support political and ensuring that projects and programs are transitions in CAR and Liberia; to address designed and implemented with more rapidity and prevent conflict in Cameroon; and to and flexibility. structure engagement during conflicts in Effective delivery of IDA18 also calls for the Yemen and Libya. Similarly, supporting teams WBG to be more present and agile in fragile in addressing gender differentiated impact contexts. Ongoing efforts to increase the of conflict and violence, and identifying entry Bank’s capacity to engage in FCV situations points to supporting women’s agency and include improving safety and security voice are also important ways to address in FCV situations. In collaboration with fragility, as laid out in the FCV Group Business the General Services Department (GSD) Plan to implement the WBG Gender Strategy. Corporate Security (CS), the FCV Group has Second, the FCV Group aims to help made it one of its key pillars of intervention. operational teams deliver risk-informed In fragile environments, the WBG is taking programs effectively. The main priority over steps to: (i) continue to strengthen corporate the coming year(s) is to leverage the FCV security assets/staffing, including through Group’s alliance with operational teams to standardizing and expanding the security risk maximize the impact of the IDA18 scale-up for management framework and developing a FCV, and fulfil the IDA18 policy commitments. real-time Security Risk Management Dashboard Specifically, the FCV Group is working with to more quickly communicate threat/risk country management units (CMUs) to establish changes and recommendations to country countries’ eligibility for funding under the office management; (ii) provide security-related IDA18 Refugee Window, and will play a key training, with among others the mandatory role in advising on the projects financed E-learning Security Responsiveness Course, Section 2 27 as well as Safe and Secure Approaches in Currently, SOST is engaged in North East Field Environments (SSAFE) training and Nigeria, Mali, and DRC. Strengthening Personal Safety (SPS) training, both delivered face-to-face; (iii) and deliver 2. ADDRESSING FRAGILITY CHALLENGES joint FCV/GSD support to Bank operations, REQUIRES DEPLOYING INNOVATIVE including through FCV’s crisis response FINANCING capacity, i.e. the Stabilization and Operations The availability of trust fund resources Support Team (SOST) set up on a case-by-case (grant funding) is critical and allows the Bank basis in high-risk FCV situations, including to provide catalytic support for the quality areas of transition/early engagement as of IDA18 delivery, as well as to finance seed conflict is ending, and areas of intermittent, interventions in non-IDA eligible countries (e.g. geographically localized, or protracted intense Syria as well as MICs) and countries in arrears conflict. Operating in close partnership with (e.g. Somalia, Zimbabwe). GSD Corporate Security and other units, SOST is available on demand to provide targeted and The FCV Group helps Regions and contextualized solutions for CMUs operating Country teams to design and implement in fragile contexts. Specifically, the SOST can facilities that provide financing solutions design, execute, and/or support, as needed: to support the public sector in contexts of fragility. Going forward, the priority is both Early scoping of options for Bank re- a)  to consolidate global FCV trust funds and to entry (e.g., South-Central Somalia, 2013), promote innovative financing solutions. These resilience (e.g., NE Nigeria, 2016/17), include the State and Peacebuilding Fund and/or re-engagement (e.g., Central and (SPF), the Global Concessional Financing Northern Mali, 2016/17); Facility (GCFF) or the proposed Yemen Reconstruction Trust Fund. A number of Designing more flexible operations for b)  these mechanisms are using Bank Group and insecure contexts; donor resources in new ways, including the GCFF, which provides concessional financing “Smart supervision”, including c)  to middle-income countries for providing a occasional TTL missions in insecure areas, global public good by opening their borders intelligence gathering, logistics, support to refugees. The FCV Group will continue to installing Third Party Monitoring to focus on serving as a “go-to” in helping (TPM), Iterative Beneficiary Monitoring regions and country teams to access innovative (IBM) or other monitoring tools, on a sources of financing to address their fragility demand-driven basis; challenges. More than ever, the aim is to attract d)  Strategic use of ICT and geo-enabling new sources of financing (capital markets, tools to improve operational effectiveness; social investors) and use scarce grant resources to leverage private investment into support Strategic partnerships with the UN system e)  for the public sector. The FCV Group will also and other key security/humanitarian/ support IFC and MIGA in the implementation diplomatic actors on the ground, for of the IDA PSW, by providing support to operational purposes and/or to strengthen World Bank teams that will undertake sector the authorizing environment for Bank reforms designed to unlock private sector operations in insecure/remote areas. investment opportunities. 28 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations THE GLOBAL CONCESSIONAL FINANCING FACILITY (GCFF) In cooperation with the UN and the IsDB, the WBG launched the Global Concessional Financing Facility (GCFF) in 2016. It targets for middle-income refugee-hosting countries, and provides concessional financing to help Jordan and Lebanon address the influx of Syrian refugees. The Facility uses donor grants to reduce the interest rates on MDB loans to the concessional levels for development projects that benefit both refugees and host communities. These projects are supported by the Bank, as well as by other MDBs, including the IsDB, EBRD, and EIB, thereby making the GCFF a coordinated international platform. The GCFF also bridges the humanitarian-development divide by fostering close linkages and leveraging complementarities between MDBs and the UN system. Finally, the GCFF provides strong value-for-money, with each donor grant dollar leveraging about $4 in concessional support. In one year, the GCFF approved nearly $200 million in grants to leverage $1 billion in concessional financing for projects to improve the lives of Syrian refugees and host communities in Jordan and Lebanon by promoting job creation and expanding vital public services and infrastructure. The GCFF has also expanded to the global level to provide rapid concessional financing and coordinated international support to help MICs address refugee crises wherever they occur. In this way, the GCFF offers lessons for other international efforts to catalyze global public goods in response to cross-border challenges. The consolidation process of FCV Trust Funds has been finalized and accepted by all partners. The FCV Group has re-positioned the State and Peacebuilding Fund (SPF) to: (a) act as an IDA catalyst by supporting the delivery of IDA18 in the most challenging FCV settings; (b) provide special financing for gaps and niches, both geographic and thematic; and (c) serve as coordination platform to ensure a coherent approach to international development in FCV. The FCV group is also exploring promising “frontier” financing solutions (e.g. development impact bonds and the use of concessional financing to “seed” and consolidate peace in conflict-affected settings) and strengthening its strategic partnerships to leverage additional resources. The SPF has a window prevent and counter Gender- Based Violence (GBV). The purpose of these relatively small scale grants (around $50,000) is to THE STATE AND PEACEBUILDING FUND The State and Peacebuilding Fund (SPF), established in 2008, is the WBG’s largest and most agile global multi-donor trust fund designed to finance innovative approaches to state- and peace-building in regions affected by FCV. It is flexible in terms of geographic areas, implementation models, and thematic coverage, and has the capacity to take risks and mobilize financing rapidly across all income country groups. It is expected to serve as a catalyst for the delivery of IDA18 in FCV and fill gaps in conventional financing. It also offers a coordination platform for the international aid community and FCV countries. To date, the SPF has provided over 130 grants worth $291m for work in 37 countries. Section 2 29 leverage larger-scale IDA and IBRD funding like floods and extreme weather events that to counter GBV, through the design and can destroy crop fields, livestock assets, and preparation of GBV-related components (or water and sanitation systems, and bring on activities). SPF supports “GBV injections” into food insecurity and malnutrition. Advances in projects ranging from $7 million-$600 million. information and communication technology Projects address for instance GBV prevention connect local grievances to regional and global among displaced populations in Kenya, survey narratives, enabling perceptions of exclusion work to support DRC women’s associations to play an important role in mobilizing in counteracting GBV in the mining sector, violent conflicts and violent extremism. It is improvement of cross-border trade at targeted also important to prevent deeply ineffective border locations in the Great Lakes Region to and fragile states witout open conflict from counter violence and abuse of women traders. deteriorating into chaos and violence. 3. PIVOTING TO PREVENTION Prevention should also encompass The World Bank Group is committed to challenges linked to interpersonal violence. putting prevention first to build a less Today, nine out of ten violent deaths come violent, more stable, more resilient world. from interpersonal and gang violence. Urban To achieve the goals of ending extreme poverty development answers are at the heart of the and promoting shared prosperity, along with response to these challenges. the Sustainable Development Goals, it is key In light of this evolution, there is a broad to tackle the drivers of violent conflict. And the recognition that development must play a best way to do so, most importantly in terms of central role if prevention is to be effective. the human lives and economic costs saved, is Inclusive and equitable development can play through preventing these drivers from erupting an important role in prevention by addressing into crisis. Conflict prevention in countries that inequalities and contestation between social bear the direct costs – casualties and losses to groups or between geographical regions of economic growth – would avoid over 34 billion a country before they turn violent. Successful dollars in damages per year. For the global efforts to reduce the risk of violent conflict community, prevention would save at least 1.2 have relied on simultaneous efforts at building billion dollars per year that fund humanitarian institutional capacity, security reform, and assistance and peacekeeping interventions. socio-economic development.18 Yet, global evidence suggests that the The FCV Group is leading efforts to improve evolving nature of violent conflict today the Bank’s ability to identify and mitigate is outpacing traditional approaches to FCV risks before violent crises erupt. prevention. Violent conflicts, surging after Pathways for Peace, Inclusive Approaches decades of decline, are increasingly protracted to Preventing Violent Conflict (mentioned and recurrent, often part of interconnected on page 31) report brings together existing regional conflict systems. Today’s conflict spill evidence and knowledge on the incidence across borders, occur in both low and middle- of violent conflict, and on the relationship income countries, involve a multiplicity of between development assistance and other actors, and increasingly impact civilians. modes of engagement for the prevention These violent conflicts are driving historic of violent conflict. It provides the analytical refugee flows and exacerbating the underpinnings for the FCV Group’s efforts to vulnerability of populations to other crises, shift the focus to prevention through analytic, 18 Pathways to Peace: Inclusive Approaches to Preventing Violent Conflict, World Bank/United Nations, forthcoming. 30 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations THE UN-WBG FLAGSHIP STUDY ON THE ROLE OF DEVELOPMENT IN PREVENTING VIOLENT CONFLICT Pathways for Peace, Inclusive Approaches to Preventing Violent Conflict is the first study to be produced in full partnership between the WBG and UN – aims to improve understanding of how domestic development processes interact with security, diplomatic, humanitarian, justice, and human rights efforts to prevent conflict from becoming violent. The study provides concrete recommendations for development and humanitarian actors on how to structure their programming to help to prevent or mitigate the risks of violent conflict. In parallel, an intensive effort has begun to operationalize the study’s key lessons and recommendations. The main takeaway of the study is that, to effectively address risks of FCV, a long-term perspective is essential, and that development policies have a critical role to play at all three stages – upstream, during conflict and post conflict. Analysis shows that every $1 invested in efforts to build peace and prevent violence in conflict-affected countries would save $16 dollars in costs of conflict over the long run (Institute for Economics and Peace, 2017, Measuring Peacebuilding Cost-Effectiveness). Systematic prevention would lower the total number of refugees by close to 2.5 million, and save UN member states over $3 billion each year on aid and peacekeeping (Hannes Mueller, ‘How Much is Prevention Worth?’ 2017). This reality has accelerated momentum for affected countries and the international community to develop new approaches and new partnerships to address complex, multidimensional conflicts that spill across borders, occur in both low and middle-income countries, and involve a multiplicity of actors, including violent extremism groups. strategic, and operational engagement. These (GPs), which lead efforts to identify, monitor include efforts to help countries improve and pro-actively address multi-dimensional prevention through strengthened monitoring crisis risks through country programs. mechanisms, improved capacity to prepare for and respond to shocks, and by leveraging To effectively address FCV risks, a long-term shocks to undertake needed structural reforms. perspective is essential, and development Innovations like the proposed Global Crisis policies have a critical role to play at all three Risk Management Platform (GCMP) provide an stages – upstream, during conflict, and once opportunity to shift from crisis response to crisis conflict subsides. The FCV Group, through prevention through strengthened synergies new analytics and the and convening power on risk identification, and crisis management that raises awareness of the need to address to provide solutions across the spectrum of conflict and crisis risks pre-emptively, is pushing interrelated risks and vulnerabilities facing forth the prevention agenda. The FCV Group developing countries today. These are based is also working with teams across the Bank on new technologies and advanced analytics and beyond to drive innovative solutions for more dynamic risk assessments, which can and deploy new tools to avert crises, such as enable more targeted support to WBG country preventing famine through pooling insurance management units (CMUs) and Global Practices mechanisms and developing geospatial tools to monitor and deliver support in crisis settings. Section 2 31 What is new? The FCV Group is coordinating be complemented and associated with top- the implementation of the Global Crisis Risks down remote sensing and geographic data on Management Platform (GCMP). The GCMP relevant developments. For instance, assessing aims to enhance the Bank’s capacity to help geo-referenced data on security dynamics, such client countries prevent, prepare for, and as the Africa-wide Armed Conflict and Location mitigate the risk of both natural and human- & Event Data (ACLED) dataset, transport made disasters. The Platform aims to balance infrastructure, and road security can help the Bank’s strong and growing capacity on determine the accessibility of specific areas crisis response with much greater emphasis on and thus the feasibility of project activities. prevention (when crisis risks can be mitigated) Moreover, remote monitoring of contextual and preparedness (when crisis risks cannot dynamics, such as displacement trends, be significantly mitigated). The GCMP brings socio-economic indicators, and environmental together, under a single umbrella, the full suite factors, can support the progressive of WBG crisis-related funding mechanisms, prioritization of project implementation steps, instruments, and knowledge-based products. despite a lack of on-the-ground access. In its initial stages, the Platform has already Geo-enabling can also help to enhance the demonstrated the Bank’s strategic and accountability and transparency of third-party operational responses to crises, such as the monitor (TPM) activities and systematize the ongoing Africa-Yemen famine emergency. The analysis of field data in integrated monitoring consultations that led to the establishment of and evaluation (M&E) systems. TPMs are the GCMP identified the following priorities: typically used for auditing and tracking project (i) strengthening and streamlining the Bank’s implementation in areas that are inaccessible crisis risk monitoring, knowledge, and analytical for Bank staff and client representatives. capacities; (ii) aligning strategic crisis risk programming at the global, regional, and Geospatial analytics allow teams to country levels; (iii) reinforcing the Bank’s crisis close crucial information gaps for more risk management financial solutions; and (iv) preparedness and more rapid crisis enhancing implementation effectiveness response. Geographic Information Systems and support. (GIS) and remote sensing techniques have been increasingly used by different Bank Innovating for Impact. Geospatial tools teams for analyzing crisis issues. In particular, can be leveraged for early warning, dynamic the Global Facility for Disaster Reduction and security monitoring, and progressive Recovery (GFDRR) has been at the forefront of prioritization of engagement in FCV and harnessing technology for quantifying disaster crisis contexts. A major requirement for and climate risks and enabling more target- operational effectiveness in FCV and crisis- oriented operational responses. Successful contexts is flexibility and adaptability in terms case studies of remote sensing technology of geographic engagement and resource in crisis contexts include the assessment of allocation, to ensure effectiveness and avoid localized impacts from natural disasters, such risks of disruption or loss of project investments as the Nepal and Haiti earthquakes; tracking due to security incidents or disasters. In this of large-scale forced displacement patterns regard, simple and user-friendly ICT tools in Lebanon and Uganda; and Damage and can be leveraged for gathering and analyzing Needs Assessments (DNAs) conducted on field-based information in a systematic way, Syria and Yemen. In this sense, a major added with increased reliability and accountability. value of satellite-based remote sensing is the In addition, the bottom-up information can ability to conduct specific in-depth assessments 32 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations when on-the-ground access is impossible. and remote monitoring techniques into field This, for instance, allows for the targeted data collection, project planning, and M&E preparation of responses already during or in systems. The structured integration and the immediate aftermath of large-scale crises analysis of spatial bottom-up and top-down and conflict, such as in the case of Mosul in data enables CMUs, project Task Teams, and Iraq. Moreover, the FCV Group will support clients to more effectively plan and remotely efforts to systematically “geo-enable” the monitor operational engagement in areas with active and pipeline portfolios in areas with limited access, in response to specific needs limited access, by incorporating GPS-tagging and contextual dynamics. ICT FOR CRISIS-RELATED ANALYTICS AND EARLY WARNING – THE SOUTH SUDAN RISK MONITOR Subsequent to the renewed violence and destabilization of South Sudan since early July 2016, there has been a lack of reliable information on the security situation and the various underlying risk drivers in the country. Accessing most parts of South Sudan is currently impossible and even temporary presence in the capital Juba is restricted for most of the WBG Country Team and project teams. Nonetheless, it is crucial for the CMU and Task Teams that operate in the country to be aware of the developing risk dynamics on the ground. Therefore, the South Sudan Geospatial Risk Monitor was launched to close some of these data gaps and provide increased situational awareness to the Bank’s internal stakeholders. The risk monitor consists of a monthly briefing on the dynamics related to the some of the major risk drivers and outcomes in the country. These include trends in terms of conflict incidents and involves actors, attacks on aid workers, road security and access limitations, food insecurity, and displacement dynamics. The risk monitor has been running since November 2016 and is updated monthly. It is produced in cooperation with the Geospatial Operations Support Team (GOST), GSURR, and GSD Corporate Security. The underlying analysis relies on the triangulation of diverse data sources, which are partly publicly available and partly acquired through close collaboration with partners. A focus of the analysis is on the most recent violence dynamics and geographic trends as well as their spatial association with other risk factors. These compound risks are illustrated in form of a PowerPoint presentation of about 10 slides that is largely based on illustrations through maps and graphs as well as text boxes with conclusions from qualitative analysis. The monthly output is provided to the Country Director and the CMU, who use the Risk Monitor as a standard information resource regarding the variety of interrelated risk dynamics in the country. Moreover, the underlying geospatial platform will support operational effectiveness in South Sudan, and will be leveraged as a tool for remote planning and monitoring of project interventions, within the contextual dynamics of the country. To this end, frontline projects in South Sudan are currently ‘geo-enabled’ so that granular information on the individual implementation sites can be integrated as a layer into the GIS platform and spatial associations between risk factors and the projects can be analyzed. Section 2 33 34 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations 4. LEVERAGING KNOWLEDGE AND The WBG has accumulated a wealth of PARTNERSHIPS information on what works and what does not work in FCV, and is ramping up The prospective near doubling of IDA18 its efforts to ensure effective engagement on resources for FCV presents significant FCV issues. Building on its convening power, opportunities for the WBG. The need for global technical and analytical expertise, and ‘know how’ to do things differently in fragile financing instruments, a central objective of states, and WBG thought leadership on FCV, the FCV group is to leverage knowledge and are essential. Knowledge and analytics are partnerships to improve the effectiveness of key comparative advantages of the WBG. To the WBG’s engagement in countries affected ensure it continues meeting the demands for by fragility. A central component of this is sophisticated and timely products, reaching building capacity internally by deploying top level government decision makers, and FCV knowledge and practice-based training disseminating effectively, the Bank is on ‘what works’ to help WBG staff succeed also deepening its partnerships globally. in the field. Section 2 35 What is new? The FCV Group is leading refugees and host communities in MICs, the Bank efforts to deepen collaboration GCFF was established as a global platform, among all stakeholders working to and developed as a joint platform that could support the poor – including humanitarian, offer lessons for other international efforts to development, and peace actors. This “new catalyze global public goods in response to way of working” recognizes that achieving cross-border challenges. It is with the same sustained peace and poverty reduction requires spirit for partnership that the SPF was designed that all actors work in the same strategic and continues. direction regardless of whether the scope of intervention is short term or long term. It Strategic partnerships at global and also recognizes that reaching the poorest, local levels are key to leverage impact. most vulnerable people sometimes require Throughout the report, specific concrete leveraging non-traditional partners. Under the examples highlight the increased emphasis on UN – World Bank Partnership Framework for new partnerships with the UN and/or NGOs to Crisis-Affected Situations, which was signed deliver more effectively, especially in conflict in April 2017, FCV is deepening the Bank’s situations. The FCV Group aims to provide partnership with the UN system through Bank teams with guidance to make it easier collaboration globally and at the country level. for them to leverage local and international This includes, among others, a humanitarian- NGOs and non-governmental organizations development-peace partnership, which drives to implement programmatic support in areas practical collaboration with UN agencies such with limited government capacity and in as PBSO, UNHCR, WFP, UNDP and UNICEF conflict situations. Partnering for greater impact through innovative pilot projects in fragile is facilitated by new tools and approaches countries. In the realm of forced displacement, detailed in this report. The bottom line of these the WBG and six other MDBs are working varied efforts on partnership is to increase the towards establishing a platform on economic Bank’s ability to deliver high-impact support in migration and forced displacement to deliver the world’s most challenging environments better value for our clients in these areas and to serve our clients in a more inclusive through an enhanced strategic alignment and sustainable manner. and synergies on the ground. Targeting 36 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations 2.2 2.2 REGIONAL HIGHLIGHTS AFRICA: still controlled by armed groups which clash regularly over control of territory and resources. Fragility cuts across the Africa region, The key challenge for development actors in with high economic, social and political such a context is to find ways to support the vulnerabilities that impede growth and stabilization process by showing rapid signs of stability. Despite ongoing efforts to increase improvement to the population, while starting the capacity of the Bank to engage in FCV to address the grievances that are at the roots situations, there is further need to develop of the conflict, e.g. the inability of the state tailored solutions to enhance effectiveness. to provide security and services, along with Typically, the WBG seeks to adjust its regional imbalances. operational engagement: for example, early engagement as conflict is ending, or shifting A Country Engagement Note (CEN) delivery modalities to stay engaged when was presented to the World Bank Board conflict becomes protracted. These situations of Executive Directors in July 2015. are coming into greater focus under the The strategy comprised two phases: (i) IDA18 FCV scale up. The WBG is developing supporting stabilization in order to assist integrated approaches that lay out innovative international efforts to break the cycle of solutions to best operate in these fragile violence and maintain confidence in the fragile settings, with the objective of providing transition; and (ii) preliminary support to targeted and contextualized solutions to recovery and development. The main focus has operate during transitional phases, in situations been on the restoration of basic government of re-emerging, protracted crises, or to functions, as well as support to livelihoods and facilitate early engagement. At subnational, basic social service provision. The engagement national and regional levels, the WBG aims to is principally focused on addressing some promote growth and facilitate stability. of the primary conflict drivers, and building confidence in public sector institutions. This Bringing Stability to the Central African will in turn assure external support to a fiscally Republic: Using Emergency Public Service weak government. The CEN was updated and Infrastructure Projects to Promote Post- with a Turnaround Eligibility Note that helped Crisis Recovery secure exceptional resources for CAR under the As a landlocked country bordered by IDA17 Turnaround Facility. unstable neighbors, the Central African Among the key areas of engagement in Republic (CAR) is one of the poorest and support of CAR’ s resilience, the WBG is most fragile countries in the world. The engaged in health (the Health System resurgence of violence in 2012 shattered the Support Project aims to increase the country’s already frail economy, tore its social utilization and improve the quality of maternal fabric, and created a devastating humanitarian, and child health services in targeted rural human rights, and security crisis. CAR faces the areas), emergency urban infrastructure tremendous challenge of having to stabilize, (the Emergency Urban Infrastructure while investing in early recovery and lasting Rehabilitation and Maintenance Project aims peacebuilding efforts aimed at breaking the to increase access to infrastructure and urban fragility trap. Sixty percent of the territory is Section 2 37 services for the population residing in the most deprived districts of Bangui), energy (the Emergency Power Response Project aims to partially restore reliable electricity supply to customers in Bangui, and to improve the financial and operational performance of the sector), food security (the Emergency Food Crisis Response and Agriculture Relaunch Project aims to protect and rebuild livelihoods and human capital by preventing negative coping strategies by poor households, and to relaunch the productivity of the agriculture sector), and delivery of effective public services (The Emergency Public Services Response Project helped to reestablish an adequate payroll and financial management system). Through the LONDO (“Stand Up”) project, the WBG facilitated peacebuilding and stabilization efforts by giving short-term employment to 8,500 men and women in 17 districts outside Bangui at a time when insecurity continued to reign. One of the objectives of the project, which provided jobs to citizens through a transparent public lottery system, was to promote social cohesion. The project also promoted entrepreneurship among beneficiaries who each received a new bicycle and were encouraged to save part of their salaries to start a business once their work shift was over. In CAR, collaboration and partnerships prove critical to enhance impact and deliver more effectively. The WBG, in partnership with the UN and the EU, co-led the Recovery and Peacebuilding Assessment (RPBA), which informed the international donor conference for CAR that took place in November 2016 in Brussels, and raised more than $2 billion. The RPBA defined the country’s priorities over the short and medium-term, in a consultative manner and in close collaboration with all international and regional partners. It was adopted as the country’s National Recovery and Peacebuilding Plan. The RPBA also helped 38 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations to inform the Bank strategy and Turn Around evidence brought the Bank to focus on two program, based on the country’s urgent and areas: (1) continued work with poor farmers on priority needs to support the recovery and increasing rice productivity and on connecting peace-building process for the next five years. them to markets and (2) direct support to the At the operational level, a strong partnership poorest by preserving access to basic services has been developed with the UN involving the and by piloting a safety net program. The Bank implementation of a road project by UNOPS, gave preference to multi-sectoral approaches, with security provided by the UN peacekeeping for example combining interventions in health, mission MINUSCA. Another example is the education, and nutrition at the community level recent Public Expenditure Review of the in the South, the poorest region in the country. security sector conducted in close partnership with the UN and the EU as a contribution to the This strategy set a strong foundation for broader Security Sector Reform (SSR) agenda. the Bank’s expanded engagement since the end of the crisis in 2014. It is now being Promoting Inclusive Growth and Access to implemented on a larger scale, with greater Basic Services in Madagascar strategic leadership from the government. The end of the crisis also meant that the Bank Madagascar is one of the poorest countries in could be more effective in its engagement the world. More than 80% of the poor there with the public sector, and is now able to work draw their livelihood from agriculture, and are with them on core issues of public finance the most exposed to weather-related disasters management and decentralization which such as flooding, landslides, and erosion. are critical for the financial and institutional Madagascar has the highest occurrence sustainability of development programs. The of cyclones in Africa and is one of the ten WBG has developed a set of lending and countries expected to be the most affected by analytical activities – focusing on key sectors climate change in the world. While progress such as agriculture, energy, education, nutrition had been made in the 2000s towards achieving and basic health, social safety nets – to solidify some of the Millennium Development Goals the country’s emergence from the crisis, (MDGs), it was brought to a halt by the 2009- restore inclusive growth and improve resilience 2014 political crisis. Today, Madagascar has (human, environmental, and institutional). some of the worst outcomes in education, These activities are shaped by an active health, nutrition, and access to clean water. dialogue with the government; the aim is to The country is also facing stark economic address selected governance and institutional challenges, despite having unparalleled constraints for a more equitable, efficient, and biodiversity and natural wealth. During the accountable management of public resources, political crisis, macroeconomic stability had particularly at the local level. The program been maintained by cutting down drastically on is articulated in the 2017-2020 Country public expenditures and investments. Partnership Framework and makes full use Coming to grips with the country’s fragility, of the IDA resources available under the the World Bank adjusted its engagement IDA Turnaround regime. during the crisis. It undertook a series of analyses to understand the sources of fragility and to shed light on its impact on poverty and human development. This Section 2 39 Rebuilding Infrastructure and Improving Development Project was put in place to Access to Employment in Post Crisis provide a rapid response emergency grant. Côte d’Ivoire These two projects provided critical support to Côte d’Ivoire as it embarked on the process of Côte d’Ivoire has experienced more than revitalizing its economy. a decade of political, social, and economic crisis, culminating in 2010 in a violent post- The WBG is now implementing the Côte electoral conflict. Throughout the lengthy d’Ivoire Country Partnership Framework crisis period, the lack of investment in roads (CPF) approved in September 2015. It and transportation infrastructure as well as in supports the country in creating a competitive water and energy generation and distribution and inclusive economy, while MIGA is open networks, resulted in severe economic to analyzing new guarantees. The CPF reflects bottlenecks and took a toll on the wellbeing of two pathways and five prerequisites identified the population. In addition, a poor education in the Systematic Country Diagnostic (SCD) system, the politicization of higher education, to achieve the goal of eliminating extreme and high unemployment have negatively poverty and boosting shared prosperity. The impacted the youth population. first entails the creation of better quality jobs through sustainable private sector-led growth Following the post-election crisis in 2011, in agriculture, agribusiness and the non- the Government of Côte d’Ivoire prepared agribusiness sectors. The second pathway a reconstruction program anchored in to attain inclusive growth is to build human the 2012-2015 medium-term National capital by improving the efficiency and quality Development Plan. This program, supported of spending in education, health and social by the World Bank Group mainly through protection and improving access to basic IDA resources, was focused on the following services, while strengthening the quality of key pillars: (i) renewing infrastructure and labor needed for private sector growth. The basic services, (ii) improving the business five main prerequisites are: (a) continued social environment for job creation. Since 2012, more and political stability; (b) macroeconomic than 500 villages have been connected with stability and debt sustainability; (c) land market all-weather roads and more than five million reform; (d) financial sector development and people have gained access to electricity, water, inclusiveness; and (e) improved governance. and rehabilitated schools and health centers. A Performance and Learning Review is under And effective employment opportunities have preparation for delivery in FY18. been provided to about 27,000 vulnerable youth, 35% of whom are women. Nigeria: Macroeconomic Stability for Accelerated Growth, Job Creation, Among the strategic priorities defined with and Delivering Services for the Poor the authorities, the Emergency Infrastructure Renewal Project was designed to improve Nigeria’s economy has been hit hard by a access to basic infrastructure in targeted urban sharp decline in the price of oil, which has and rural areas following the long lasting aggravated long-standing weaknesses and political crisis. Given the country’s emergency grievances. Despite a strong economic track needs, a $100 million IDA project was record, poverty is significant, and reducing implemented and matched with government it will require stronger non-oil growth and a funding of the same amount. Considering Côte greater focus on human development. The d’Ivoire’s youth employment challenge, the country is facing a range of complex conflict Emergency Youth Employment and Skills and security challenges, although the incidence 40 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations and causes of violence differ significantly on actions to improve human development among its 36 states. The security situation outcomes. The Saving One Million Lives in Nigeria continues to be influenced by (SOML) initiative in the health sector is taking terrorism, armed conflict and general crime. a results-based approach to: strengthen basic The rise to prominence of Boko Haram in North services, particularly in rural areas, with the goal East Nigeria has proven to be a considerable of preventing deaths of mothers and children; challenge to the country’s security forces. improving clinical governance across all care levels; strengthening primary and secondary The Government of Nigeria seeks to prevention care; and creating an enabling implement stabilization and recovery environment for private sector involvement in measures while addressing the medium and health services and commodities. An important long-term development agenda, including element of the WBG program has been to efforts to improve security and combat help identify, capture and share local solutions corruption. The stabilization and recovery to pertinent development challenges, to help measures focus on (a) restoring macroeconomic bring them to scale across states. For example, resilience and growth; and (b) improving as part of the Lagos Eko Secondary School security in the NE and Niger Delta. Restoring Project, the WBG also piloted evidence-based macroeconomic resilience and growth will be secondary education reforms which include critical not only for Nigeria but for West Africa secondary schools in poor and marginalized as a whole, given the strong links between (migrant) parts of Lagos. The impressive impact Nigeria and neighboring countries in trade at secondary school level has led to impacts and capital flows. The medium and long-term on primary school performance and approach. agenda is to promote job creation and build Several other states have been studying Lagos’ an economy led by a strong and responsible approach, illustrating that WBG support to one private sector; provide physical and economic state which proves successful, may have the infrastructure; enact social policies that would potential to be transformative more broadly increase opportunities for the poor and within Nigeria. vulnerable; and address climate change and other stressors. Since 2009, nearly 15 million people have been affected by the violence of Boko Against this background, the WBG program Haram and the resulting military operations in Nigeria is extensive and spans across many in the North-East of Nigeria. Lessons drawn sectors, ranging from health and agriculture from the RPBA and the Performance and to urban transport, water and public financial Learning Review (PLR) highlight the importance management. More recently, the WBG of an integrated and balanced approach engagement has been expanded to include to recovery and balance peace building, support to addressing the impact of declining stability, and social cohesion interventions oil prices on public finance and inclusive with programs aimed at reconstructing or growth, and to articulating and implementing rehabilitating social, physical, and productive support to the conflict affected states in north- assets. Peace building, stability, and social eastern Nigeria. cohesion interventions aim to ensure the sustainability of recovery interventions on In support of the government’s effort to lay the ground and lay the foundation for human the ground for economic growth and social security to prevail. inclusion, the WBG’s engagement has focused Section 2 41 The WBG tailored its program of support joined by GSD Corporate Security, covering in to the North East of Nigeria to include 5 parallel (i) portfolio flexibility (smart supervision, additional financing operations valued at third-party execution through UN agencies $450 million (agriculture, health, education, and I-NGOs, etc.), (ii) geo-enabling solutions, community development, and youth (iii) a security platform maximizing the ability employment and social support), the Multi- of Bank teams to deploy to the field, to ensure sectoral Crisis Response Project (MCRP, minimum portfolio oversight. The response $200 million), and the Polio and Routine is led by FCV’s Stabilization and Operations Immunization Project ($125 million). A key Solutions Team (SOST), operating in a problem- cross-cutting objective underpinning the solving mode, addressing the CMU’s strategic program is building resilience by addressing priorities for the North East and supporting the the service delivery gaps, livelihood deficits GPs in their projects. and social cohesion issues created by this protracted crisis. This is expected to help create conducive conditions for the return EAST ASIA AND PACIFIC of displaced people, restore normalcy for 1. Overarching Strategic Pillar: Enhancing residents who stayed back and alleviating the operational effectiveness of the WBG, by burden of neighboring regions hosting the improving staffing, enhancing flexibility and IDPs. It is structured around fast disbursing to leveraging knowledge ensure rapid responses and develops resilience through medium-long term responses in PAPAU NEW GUINEA (PNG) AND THE education, youth employment, social support PACIFIC – IDA18 provides an immense or community development. opportunity for transformational development, and particularly for these six countries in the The WBG’s efficiency and effectiveness region (Kiribati, Marshall Islands, Federated in the North East crucially depends States of Micronesia, Papua New Guinea, on how to work across sectors and Solomon Islands, and Tuvalu). National government tiers. It therefore also entails allocations for these six FCV countries will the implementation of a new way of working increase from approximately SDR169 million in with the humanitarian, development, and IDA17 to SDR417 million in IDA18. Delivering peace actors in North East Nigeria to tackle on this scale-up will require the WBG to focus complex, multidimensional, subnational crises. upon areas of most importance for future The Bank’s response has been an integrated growth and wellbeing, as well as strengthening approach to portfolio implementation, fit-for effectiveness of delivery, in highly constrained purpose to achieve development outcomes capacity environments. in insecure environments, with an eye to early peace consolidation in areas of the North On the analytical front, and to lay the strategic East recently freed from Boko-Haram, or still basis for the IDA18 scale up, the WBG partially under their influence prepared a flagship report, Pacific Possible, (e.g. Borno State). which helped identify the most promising transformational opportunities to generate Central to this integrated approach, which sustainable economic growth and deliver is supported by a Bank-executed State and shared prosperity to the people of the Peacebuilding Trust Fund (SPF) Grant, is Pacific. It identified key drivers of growth and the deployment of multidisciplinary missions employment in the Pacific for the next 25 on the ground, led by the FCV Group, and years – tourism, fisheries, labor mobility and 42 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations ICT – as well as some of the significant drivers Tina River Hydropower Project in Solomon of fragility, including climate change, non- Islands, authorization was provided to submit communicable diseases, gender and limited to the Board a financing agreement for an institutional capacity. The WBG is now working investment operation modelled on the more with partners to translate these priorities into flexible document used by IFC in the context operational engagements including support for of PPP operations. This enabled the financing ICT in countries such as Tonga, Micronesia and agreement to reflect the fact that some specific Marshall Islands, and support for fisheries in information, such as exact contributions by all Solomon Islands, Tuvalu and Marshall Islands. financiers to Tina River, or the specific time by which some conditions will be met, was not Recognizing the specific challenges of available at the time of Board submission. delivery in fragile states, and particularly those where capacity is highly constrained, The scope to utilize new instruments is the WBG has built upon prior operational being actively explored, including the experience to consolidate activities, build new Programmatic Preparation Advance capacity and maximize the use of new (PPA), which is being rolled out in several instruments and flexibilities. Recognizing the countries. PPAs have the potential to need to limit the number of new operations, reduce the transaction costs of accessing the Bank has exploited the use of platform- preparatory resources for multiple projects, and based approaches supporting regional strengthening critical cross cutting functions initiatives in aviation, ICT, maritime services, (e.g. procurement, financial management disaster risk reduction, and fisheries. The WBG and safeguards). The Federated States of is also developing standardized and replicable Micronesia signed the first PPA in the Bank forms of engagement such as a series of for $5 million, and will finance the recruitment resilient transport operations combining of consultants, establishment of a Centralized institutional support and capacity building with Implementation Unit within the Ministry of climate resilient investments. These regional Finance, operational costs, studies and analysis and standardized approaches enable us to to support project design. More generally, test and refine interventions over time and and to address capacity constraints, the Bank deploy human resources efficiently as teams is building upon earlier experiences with progressively enhance their skills in supporting centralized/regional fiduciary support for a given set of activities. the regional aviation project and for projects in Kiribati to support the establishment The WBG is working in close collaboration of centralized project management units with development partners, particularly within ministries of finance for preparation of the Asian Development Bank (ADB) and pipeline projects. Work is ongoing to establish regional organizations, sharing offices such units in Samoa, Tonga and FSM and and harmonizing procedures. The WBG a systematic capacity building program for in FY17, for the first time, received a waiver Project Management Unit staff throughout the from the Board of Directors to apply the ADB Pacific is under preparation. procurement rules so that the two institutions could co-finance a transport sector operation in Calibrating staffing to support the scale up Fiji in a seamless way. Similarly, opportunities is critical. The Bank is working to place World for harmonizing procedures with the IFC have Bank staff much closer to clients in the region been utilized for PPP operations requiring to provide hands-on support. By June 2017 concessional finance. In the context of the the number of World Bank staff based in client Section 2 43 countries in the Pacific increased to 47 from just percent of whom are women. Among 11 in FY2010. Over the past 18 months, several other conflict-affected areas, the MTF international specialists in the South Pacific delivered community infrastructure, Hub Office have been placed in Suva. The livelihood and functional literacy programs office now houses a Resident Representative in 25 Base Camps and six Acknowledged for the South Pacific, five international Camps of the MILF. Other results of the specialists, a liaison officer and a support staff MTF included reaching over 50,000 MILF of three, with two new specialists (ICT and combatants and community members FM) soon to come. Attracting strong talent to through operational support to Sajahatra Sydney, as a key hub supporting the region, Bangsamoro, the joint government-MILF continues to be important as well as remaining development program; delivering $750,000 a locus for a ramped-up safeguards team. in financial and technical assistance to prepare the Bangsamoro Development 2. Overarching Strategic Pillar: Addressing Plan – the first comprehensive economic Fragility by Operationalizing the blueprint prepared by a non-state Differentiated and Risks-based Approach armed group; and providing $2 million PHILIPPINES – Sub-national conflict in one in community enterprise development of the fastest growing economies in Asia, is under a grant to the International Labour closely associated with poverty. In the southern Organization. The MTF brought together island of Mindanao, some 62 percent of the the European Union and the governments population has been directly affected by of Sweden, Australia, Canada, the conflict, and poverty is highest in Mindanao’s United States and New Zealand as conflict-affected areas. For over a decade, contributing partners. World Bank engagement has aimed to promote  ore broadly, Bank financing for •M peace, social cohesion and institution building national-level programs includes projects along with social and economic opportunity with direct benefit for Mindanao as a through a complementary range of activities. whole. For example, the USD$508 million Strong working relationships with stakeholders Philippines Rural Development Project and development partners, including the includes roughly $121 million in support of UN, have been integral. Bank investments in farm-to-market roads in Mindanao, while knowledge and technical advice intensified the $479 million National Community also following two key breakthroughs in the Driven Development Project includes $190 peace talks between the government and the million for Mindanao. In addition, the $450 Moro Islamic Liberation Front (MILF) – namely, million Social Welfare & Development signing of the Framework Agreement on Reform Project included support for the Bangsamoro (FAB) in 2012 and signing conditional cash transfers for roughly of the Comprehensive Agreement on the 1,700,000 households in Mindanao, of Bangsamoro (CAB) in 2014. Program highlights which 400,000 households are in the include the following: Autonomous Region of Muslim Mindanao  he Bank-administered $29 million •T (ARMM), the poorest region of the country. Mindanao Trust Fund (MTF, 2005-2017)  nalytical work has had wide reach, •A delivered access to basic services for promoting informed decision-making. over 650,000 beneficiaries in conflict- Key analytical outputs have included affected communities in Mindanao – 53 a Public Expenditure Review in basic 44 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations education for the ARMM; a MILF ex- Looking ahead, future engagement in combatant needs assessment; and an Mindanao will build on lessons learned to influential study on land conflict for the date. After the MTF’s culmination and closing Transitional Justice and Reconciliation in 2017, the WBG agreed with the government Commission that had significant policy and development partners to carry out a uptake. The government has also adopted follow-on project for two years (FY18-19) with a "peace lens" to guide implementation $3-4 million in grant financing from donor of the $1 billion National Community partners. A grant totaling $1.5 million from Driven Development Program (NCDDP) in the State and Peacebuilding Fund (SPF) will conflict-affected areas across the country, also amplify the engagement for results in also endorsing a special set of procedures conflict-affected areas. The conflict in Marawi for the NCDDP in conflict-affected areas from end-May 2017 through mid-October 2017 developed with Bank support. has deepened the need to deliver a “peace dividend” for conflict-affected communities Longstanding Bank engagement in in Mindanao; strong engagement through Mindanao points to three main lessons. CDD activities can play a role. The Bank is also First, continuity and sustained engagement engaging with government and development matter. A decade of continuity has enabled the partners on a Comprehensive Program for WBG to earn the trust of local counterparts Regional Development in Mindanao to focus and strengthened the Bank’s own capacity on the development needs of Mindanao as to tailor and translate global experience into a whole. The proposed program would carry relevant expertise in the Mindanao context. forward WBG engagement on peace building Second, feedback from clients affirms the while also broadening the engagement to both value of participatory processes for promoting conflict-affected and non-conflict-affected areas ownership and social cohesion. Stakeholders of Mindanao. have proposed that the community-driven development (CDD) approach of the MTF helped to build confidence, ownership and EUROPE AND CENTRAL ASIA promote peace, and highlighted an increase in women’s participation in community Overarching Strategic Pillar: Addressing planning. Third, efforts to promote cooperation Fragility by Operationalizing the and reduce transaction costs are especially Differentiated and Risk-Based approach – important for development assistance in Development Approaches for Preventing conflict-affected environments. The MTF Violent Extremism played a unique role as a platform for CENTRAL ASIA – Violent Extremism (VE) partnership with government, regional and sets back many development gains, and local stakeholders and development partners thus preventing it is of strategic importance in Mindanao. Bank partnership with the UN in to the WBG. The WBG is increasingly Mindanao has also been significant, including emphasizing the value of preventing violence for technical assistance for the peace process and addressing risk factors long before through the joint WB-UN Facility for Advisory violence starts. VE is an area of concern for Support for Transition Capacities (FASTRAC), governments in Central Asia. For example, which was established in 2013. Tajikistan has adopted a National Strategy on Countering Extremism and Terrorism for 2016–2020 that aims to consolidate efforts of state institutions, local institutions, civil society, Section 2 45 and international organizations to prevent The proposed study aims to (i) provide the spread of extremist ideology and actions. evidence-based research on the drivers of In 2015, Tajikistan became the first country VE in Central Asia, with specific reference to offer an amnesty aimed at rehabilitating to youth, gender, and local dimensions; (ii) voluntarily returning fighters. The Program of define a development approach for preventing the Government of the Kyrgyz Republic on violent extremism (PVE) that can complement Countering Extremism and Terrorism for 2017– security approaches; and (iii) recommend 2022 aims to address social vulnerabilities possible development interventions to support caused by unemployment and inadequate client governments in preventing VE and in education, and to limit recruitment to addressing recruitment and reintegration. extremist groups. These prevention measures complement security measures to combat VE, It is expected that this Advisory Services drug trafficking, and financing of extremist and Analytics (ASA) will shed light on the activities. This is an opportune moment to specific risks of recruitment of young men engage in policy dialogue as governments and women into VE, the extent to which in the region are reconsidering policies and VE movements have grown in Central Asian instruments used to prevent VE in the past that countries. A special focus will be placed on may be counterproductive. These governments persons who have returned from joining VE are also facing the daunting challenge of groups abroad or in country, to understand reintegrating returning fighters and their their views on their individual process of families to avoid a further cycle of radicalization and the drivers of VE involved in radicalization in their respective communities. such process. The study will also help to clarify the relationship between the state and society Citizens of Central Asia and Russia were with respect to VE and the prospects of PVE reported to be the third largest group development approaches. of foreign militants in ISIS, after Middle Easterners and Western Europeans, yet rigorous Research on VE in Central Asia is LATIN AMERICA AND THE CARIBBEAN very limited. In many cases research dates Overarching Strategic Pillar: Addressing to the 1990s or early 2000s. The WBG has Fragility by Operationalizing the recently launched a mixed methods study to Differentiated and Risk-Based approach help close the knowledge gap and contribute to international efforts to prevent VE in HAITI – Developing an approach to deep and Central Asia. Building on the Bank’s expertise longstanding fragility without widespread in development as well as its dialogue with conflict: Why focusing on Resilience, governments in the region, the study will particularly in cities, in addition to basic provide critical evidence to define a coherent service delivery and data development, will development approach to VE in the region reduce overall fragility. Haiti faces challenges and lay the groundwork for development of deep poverty, political volatility interspersed operations focused on prevention, which with instability, and high recurrence of natural can complement and reinforce other actors’ hazards. Over 96% of Haiti’s population is strategies and programming. The study’s at risk of impact from a natural hazard in systematic research also aims to contribute any given year. Political volatility and natural to the understanding of the VE disasters have been shown to systematically phenomenon globally. and significantly impact Haiti’s economic 46 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations and human development performance, with Management, preparation and protection of mutually reinforcing effects. Natural disasters people in the event of a disaster, and build cost the country 1.7% of GDP on average per resilient infrastructure (US$65M) as well as annum and have been shown to be correlated several interventions in the urban sphere. with incidence of political violence and criminal activity. Modest poverty, growth, and service Haiti’s rapid urbanization is closely delivery gains are repeatedly offset by political correlated with increases in instability and natural shocks, resulting in declining per risk as well as increases in vulnerability capita growth over the last 40 years and rates and natural hazard risk. Haiti’s growing cities of moderate poverty of over 58%. are also the locus of a weakened social fabric, where social norms and community support IDA’s approach to this variety of deep systems loosen,while access to social services fragility recognizes that drivers are is extremely limited. Due to rapid urbanization, deeply intertwined and that risk is multi- despite post earthquake efforts to build safer dimensional. The World Bank program structures, the vulnerability of city dwellers, supports: (i) inclusive growth beyond Port- continues to increase. Underpinning greater au-Prince; (ii) investments in human capital stability means harnessing rapid urbanization through education and health, water and to maximize economic opportunities while energy services (iii) the generation of key data reducing the risks, which disprorportionally to underpin evidence-based policy priorities, affect the poorest. In recognition of this, the including in public finance. A large portion Haiti country program supports analytical work of the financing and analytical program and financing of activities in the urban sphere, however, is allocated to building resilience and including with a view to learn about and reducing risk particularly in cities. This includes reduce fragility. substantial financing to improve Disaster Risk Section 2 47 Urbanization Review – The Urbanization about their use, spatial entry points to risk Review (January 2018), analyses the momentum mitigation, such as investment in infrastructure of urbanization, its characteristics and the and knowledge in the Urban sphere. All these salient need for planning, natural and social provide coherence and focus to the IDA risk mitigation, social fabric strengthening, and program. The RRA is undertaken in the of prioritizing resilience. Broad dissemination context of the FY18 PLR for Haiti to assess to civil society interlocutors including outside what further can be done to sharpen the of the capital will bring stakeholders to a program’s focus on risk. necessary conversation around co-habitation, exclusion, and vulnerability in cities. This will form the basis of further work towards MIDDLE EAST AND NORTH AFRICA urban inclusion. Overarching Strategic Pillar: A Robust The Municipal Development and Urban Strategy Focused on Peace and Stability Resilience Project – This project (US$ 52M) In 2015, the World Bank Group adopted situated in Haiti’s second largest city, Cap a new strategy for the Middle East and Haitien, aims to reduce the risk that over North Africa (MENA) premised on the idea 40,000 city dwellers a year experience flooding, that it could no longer afford to shy away while revitalizing an important and central area from addressing the fundamental drivers of the city, including slum areas. The project of conflict and instability in the region. The supports capacity strengthening of greater costs of post-Arab Spring civil conflicts have Cap Haitian in urban planning and municipal been huge, erasing years of development service delivery. It will have a visible impact progress and inflicting widespread death, on living conditions of vulnerable populations destruction, displacement. And the spillovers alongside a lagoon, the bulk of direct from these conflicts have reverberated across beneficiaries. Extensive social work carried the region – and the world. The World Bank’s out in preparation of project implementation MENA strategy, therefore, focuses directly on will help guide activities and support social promoting peace and stability in the region and contract improvements at the local level, addressing the underlying causes of fragility strengthen the dialogue between citizens and and conflict, including economic and social local government through discussion within a inclusion, with activities organized under four broad group of stakeholders around the use of broad pillars. space and living conditions.. These efforts seek to use territorial development as an avenue to Renewing the social contract with a view 1.  improve living conditions and increase social toward stimulating inclusive growth driven cohesion in high risk areas. The FY18 PLR by a dynamic private sector. Under the old for Haiti will further assess what avenued to social contracts, in place for half a century, sharpen the program’s focus on prevention. development outcomes were positive but not sustainable. The Arab Spring Efforts to improve resilience extend to events shed light on the cracks in these other sectors, including risk management in contracts, which relied on redistribution public financial management, the building of through a large and inefficient public safe schools and clinics, the development of sector in exchange for limited voice and earthquake and hurricane resistant building accountability. Distortions and limited guidelines, training in the use of such competition constrained the private guidelines and the dissemination of knowledge sector’s growth, investment opportunities, 48 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations and job creation, leading to widespread and modernizing education systems dissatisfaction and a middle-class squeeze, for the jobs and industries of today especially among the relatively young and tomorrow. citizens and populations in lagging regions. The sustained downturn in oil Resilience to refugee shocks as a 3.  prices has made the renewal of the social regional and global public good. contract an urgent priority even in the MENA hosts the second largest oil-rich economies in the region. The percentage of displaced people in World Bank therefore aims to improve the world.19 Lebanon and Jordan, for accountability and transparency, open- example, have taken in over 3 million up space for private-sector growth, Syrian refugees. Iraq, which has its own and create conditions for job creation, 3 million IDPs, also hosts over 250,000 particularly for youth and women, with Syrian refugees. The spillovers from the the preferred approach being to crowd- conflicts are undermining the ability of in private investment through a range of neighboring countries to provide basic measures, from supporting critical policy services to their populations, creating reforms that improve the investment societal pressures and destabilizing climate to providing de-risking instruments governments. The World Bank has to attract private capital. Highlight: This been proactive in working with client approach of “maximizing financing for countries to develop responses focused development” has been successfully on supporting host governments, host applied in Egypt, where the World Bank communities, and refugees. supported reforms to unlocked private Recovery and reconstruction, with 4.  investments totaling more than $20 an aim to not only build back war- billion in oil and gas and $5 billion in torn countries but to build forward, renewable energy. to build better. Ongoing conflicts 2.  Regional cooperation is a foundation are exacting a heavy toll in terms for resilience and stability and a key of destroyed human, physical, and component of countries’ efforts to institutional capital. State collapse and strengthen the private sector, create the fluid political context implies that the jobs, and improve living conditions. reconstruction process will be dynamic, MENA has remained among the world’s complex, and multidimensional. This least integrated regions so the benefits approach recognizes that recovery from greater cooperation among and reconstruction planning cannot be countries in the region are manifold and deferred until after conflicts cease. The important for reducing tensions and World Bank’s approach is to be flexible armed conflict, increasing cross-border in its assessments, prepared to act under trade and investment, and pooling different scenarios, and innovative in resources to increase the region’s non- partnerships with development and oil competitiveness. Highlight: World humanitarian actors. Highlight: In Iraq, Bank activities are currently focused the World Bank has carried out a Damage on improving Pan-Arab energy trade, Needs Assessment that informed the promoting regional water security, Government’s Iraq Reconstruction and 19 According to UNHRC data, MENA hosts 26 percent of displaced persons worldwide, second behind Africa, with 30 percent. Section 2 49 Development Framework, which was Organization (WHO) and UNICEF, as presented at the Kuwait International implementing partners. Building on previous Conference for the Reconstruction of Iraq successful engagements in Yemen’s health in February 2018 (an event co-hosted by sector through the Health Population Project the governments of Iraq and Kuwait, the and the Schistosomiasis Control Project, the European Union, the United Nations and World Bank, WHO, and UNICEF leveraged the World Bank). Together with the IMF, each institution’s comparative advantage the World Bank also continues to support to provide timely essential services to the Iraq’s macroeconomic reforms and to Yemeni population in an extremely challenging assist the Government of Iraq to restore environment. As of January 2018, 7.3 essential basic services in areas liberated million Yemenis (60 percent of whom are from ISIS. female, and nearly 70 percent of whom are children under the age of five) have received Overarching Strategic Pillar: Deepening essential health, nutrition, and population the Humanitarian-Development- services, and disbursed 65 percent (US$ Peacebuilding Nexus 310m) of the allocated funds The EHNP is an Yemen Emergency Health and Nutrition Project example of the World Bank and development partners, particularly UN agencies, working in The ongoing conflict in Yemen has partnership to bring to bear multiple sets of resulted in a national catastrophe, with expertise in an extremely complex situation. the widespread destruction of physical infrastructure and the degradation of public service capacity contributing to a steep SOUTH ASIA deterioration in human development outcomes in a country already facing considerable Over the last decade, the WBG’s challenges before the escalation of conflict in engagement in South Asia has put a March 2015. By November 2016, the situation premium on innovation and inclusion and has in Yemen had become dire: More than 10,000 developed multi-sector approaches. In such people killed, 50,000 Yemenis wounded, over countries as Afghanistan, Pakistan and Nepal, three million people internally displaced, 14 the question is how to best engage and quickly million people experiencing food insecurity, deliver aid to support reconstruction and and 18 million people lacking access to basic the state-building process in such a difficult health services. A lack of sufficient access to context, or how best to face the challenge of health care facilities further compounded this forced displacement. crisis, contributing to the largest ever recorded Overarching Strategic Pillar: Addressing cholera epidemic and the worst children Fragility by Operationalizing the malnutrition rates in the world. In response, Differentiated and Risk-Based the World Bank, through a US$ 483m IDA approach – Innovative multi-sector grant, launched the Yemen Emergency Health and differentiated approach to respond and Nutrition Project (EHNP) to preserve to state-building challenges the capacity of the health system to deliver critically-needed health and nutrition services One such example is the Citizens’ Charter to Yemenis and to respond to the cholera Afghanistan Project (CCAP) – the successor outbreak through integrated health and to the highly successful National Solidarity water interventions. Program (NSP), which introduced a community- driven development approach in Afghanistan The project was innovative in its use of towards rural infrastructure and service UN agencies, in this case the World Health delivery and reached approximately 35,000 50 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations communities over the past 14 years. The More recently, the CCAP was also provided CCAP finances the first phase of the broader additional financing (AF) to help respond “Citizens’ Charter National Priority Program” to the regional displacement crisis that (CCNPP) that introduces a completely new Afghanistan is facing. Over the course of 2016 multi-sectoral approach going beyond NSP and early half of 2017, an estimated 775,000 in response to the Government’s need to undocumented and unregistered refugees build off this community development council returned to Afghanistan from Pakistan and Iran. (CDC) platform to deliver a broader range of In addition, Afghanistan has over 1.2 million basic services and help foster trust between individuals at different stages of displacement, citizens and the state. The Citizens’ Charter and an additional 400,000 internally displaced is the first inter-ministerial program where persons (IDPs) were added in 2016. The Ministries collaborate on a single program Government’s goal has been to grant returnees in both rural and urban areas. While most and IDPs decent and humane treatment in line Citizens’ Charters globally cover a single sector, with their constitutional rights as citizens of or a small geography (e.g. a city or state), the Afghanistan that will enable them to become CCAP has national coverage and offers a basic productive and well-integrated members of package of services across six sectors – water, their community. Given the experience with energy, roads, irrigation, health and education. NSP, the CCAP was intended to also serve as Implementing this package of minimum service the main community response mechanism for standards in the fragile context of Afghanistan IDPs and returnees (IDP/Rs), providing them is therefore going to be an ambitious effort access to basic infrastructure and services that, if successful, will have lessons for other works such as roads, irrigation, electricity FCV countries globally. and water. As a result, CCAP has developed operational guidelines to respond to the Building off the lessons of NSP, the CCAP returnee/IDP crisis, and was designed to be also brings with it several innovations able to expand its geographical scope rapidly in terms of social mobilization, women’s to target high returnee areas. Key priorities for participation, and technical service delivery. CCAP in relation to IDP/returnee integration First and foremost, it streamlines the various as per these guidelines include access to parallel service delivery mechanisms amongst basic services and inclusion into decision- ministries and focuses them on the delivery making mechanisms such as representation in of the minimum service package needed by CDCs, shuras, city governance structures, and communities. Second, by strengthening citizen municipal advisory boards. The $172 million AF engagement and monitoring through the roll to CCAP (a) expands the geographic coverage out of six-monthly ‘citizen scorecards’ and of the project to additional areas of high the consolidation of community participatory returnee and displaced population density; (b) monitoring (CPM) in the delivery of services adds new activities, including a component such as clean drinking water, education and around “social inclusion grants (SIG) and health, it increases the chances of those maintenance and construction cash grants services actually being delivered. Third, by (MCCG)” to help finance labor intensive public transferring resources and responsibilities for works and collective action activities for both local level infrastructure to communities, it frees displaced households and host communities; up technical line agencies to focus upon larger, and (c) contributes to regional coordination more technically sophisticated infrastructure. In around the displacement crisis through this way, the Citizens’ Charter provides the next enhanced returnee data collection. Through generation of community-driven and inclusive the social and economic incentives under the service delivery in a highly fragile context. CCAP AF, an estimated 1.5 million direct and Section 2 51 indirect beneficiaries will be supported of  he Operations and Maintenance (O&M) •T which an estimated 660,000 are IDP/Rs located Facility provides an incentive to increase in the 14 highest IDP/R concentration districts spending for O&M and improve fiscal flows in rural/peri-urban areas as well as in the cities to provinces. of Jalalabad and Kandahar that are under the coverage of the project. In terms of governance, the ARTF IP Working Group is a technical advisory body which is The Afghanistan Reconstruction Trust accountable to the ARTF Steering Group and Fund (ARTF) Incentive Program illustrates represents the wider group of ARTF donors. cutting-edge WBG work on macroeconomic It is a forum for technical discussions between stability and fiscal/PFM management, helping donors, the Government and the World Bank. governments in fragile situations strengthen their capacity and credibility. The incentive More broadly, the ARTF is an example of program (IP) was set up in 2008 under the how to best engage and quickly deliver aid Afghanistan Reconstruction Trust Fund in such a difficult context. The WBG pooled (ARTF) to support policy reforms aimed at donor financing in the ARTF to support the improving fiscal sustainability by enhancing state-building process and reconstruction. Over domestic revenue mobilization as well as the years, instruments have been added and strengthening expenditure management. The adjustments made to improve implementation IP is part of the recurrent cost window (RCW) and increase effectiveness. Looking ahead, set up under the ARTF at inception, in 2002, the WBG team is evolving from unconditional still the WBG’s largest single country Multi- budget support during the immediate Donor Trust Fund (MDTF). Like the baseline re-engagement phase to performance- ARTF support, funds are disbursed into the oriented financing in line with growth of government’s civilian operating budget. IP institutional capacity (see Section 4 for funds are released through the Recurrent additional information). Cost Window (RCW) and disbursed into the The Risk and Resilience Assessment (RRA) for government’s civilian operating budget to Nepal was completed in June 2017 and is an finance eligible expenditures, including teacher example of shaping a country engagement and health worker salaries and Operations and through the ‘fragile lens.’ This RRA is Maintenance (O&M) expenditures. IP funds are celebrated as frontier work and regarded covered by the fiduciary controls applied to as best practice among the four countries all RCW funds and are subject to controls by receiving financing through the new IDA FCV the ARTF monitoring agent. The IP consists of Risk Mitigation Window, which aims to enhance three modalities: support to selected countries with increasing •R  evenue Matching Grant: Intended to risk of fragility and allows Nepal and other incentivize improved revenue performance eligible countries to access additional funding towards agreed revenue targets; up to 33 percent of their regular IDA allocation. The RRA provides an understanding of the FCV •S  tructural Reform Scheme: Supports stresses facing Nepal and the potential role of formulation and implementation of the Bank in helping to mitigate and address reform-oriented actions organized under these risks. It identifies the multidimensional four areas: Public Financial Management; risks that worsen the country’s vulnerabilities Governance and civil service reform; to economic, political, governance and social Investment Climate and Trade Facilitation; breakdown and propensity for organized and Sub-National Finance; 52 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations violence. More generally, the raison d’être for IDPs with a primary focus on medium to longer carrying out RRAs springs from the conviction term livelihoods and jobs will be prepared that it is not enough to “do projects right” and will include a mix of policy level reforms (streamlined procurement and financial and investment support to urban cities such as management arrangements with sensible Kabul, Jalalabad and Herat. environmental and social safeguards), it is also necessary to do the “right projects” i.e. In 2016, the World Bank and UNHCR those that address fundamental issues at the established a joint platform for collaboration, core of the grievances. To further address the which now includes IOM and OCHA. It main risks faced by Nepal, the World Bank is supports the Government, coordinates increasing support for fiscal devolution, public with the UN agencies that are providing financial management, institution and capacity immediate assistance, and is mainstreaming building, infrastructure development, improved the displacement agenda throughout the employment opportunities, social inclusion, country portfolio. In addition, the WBG is and preparedness for natural disasters. At working closely with UNHCR to conduct the government’s request, the World Bank is just in time analytics that are informing new taking the lead to coordinate the development program designs and geographical targeting partners to help manage and the transition of developmental resources, looking at from a central to a federal system. ways to improve social cohesion through local institutions, service delivery and going Overarching Strategic Pillars: Scaling up forward in identifying policy and investment WBG response to Forced Displacement opportunities for livelihoods support. As part & Deepening the Humanitarian-Peace- of the platform, the WBG is also working Development nexus closely with the government, and humanitarian agencies (UNHCR, IOM and UNOCHA) on Many of the WBG’s existing interventions building a common understanding of the of national scale are already working to current evidence base on displacement support the influx of Returnees and IDPs. including harmonized monitoring data. An In Afghanistan, additional financing to the inter-agency collaboration has been initiated to Citizens Charter Afghanistan Project (CCAP) undertake analytical work, new data collection was used for an emergency quick disbursing to contribute to the evidence base on the operation to support grants directly to immediate needs and understand the legal and community development councils (CDCs) for policy environment to address longer-term (re) cash for work schemes for the returnees, IDPs integration challenges. and host communities. This also included the construction of additional schools in areas of On Pakistan, the overall objective of high return to cope with the growing number the proposed program is to support the of enrollments. Secondly, the WBG’s recent Government’s effort to improve development $100 million Development Policy Grant (DPG) outcomes in host communities and to create an program focuses on strengthening the policy enabling environment for better management framework around Returnees and IDPs by of refugees and Afghan nationals by (1) ensuring certification of all returnees at the adopting and implementing a policy framework border. It is planned that the Education Quality that responds to the different needs of Reform in Afghanistan Project (EQRA) supports refugees and economic migrants; (2) improving re-entry and enrollment to returnees and IDP education and skills development outcomes children. With IDA18 funds, a program to support host communities and Returnees/ Section 2 53 in hosting provinces/areas; and (3) reinforcing  hyber Pakhtunkhwa Rural •K social cohesion between refugees and their Transformation and Livelihood Project hosts. The proposed projects under the IDA18 (KPRTP). The project would finance sub-window for refugees and host communities community-level infrastructure and are yet to be designed and implemented but a create economic opportunities in the series of projects are under consideration: 10-12 districts with the largest refugee populations. The project would contribute nstitutional Reforms Project (IRP). •I to job creation, especially for youth and The IRP aims to support the design and women, develop/support enterprises and implementation of the Government’s entrepreneurship in on-farm, off-farm, and proposed policy reforms and includes non-farm sectors; support improving local the following components: (i) technical infrastructure and services; and improve assistance to support the design and agricultural productivity. KPRTP would build implementation of the Government on the existing government programs for strategy, including the visa regime rural development through both the public and border management, stakeholder and private sectors, and would strengthen consultation, and communication; (ii) the capacity of local governments for improved management of undocumented improved service delivery. Its components Afghans in Pakistan, including maintenance would support (i) Increased number of jobs of the database and supporting their use of in project areas, (ii) Increased productivity the new visa regime and border movement of targeted farmers, (iii) Improved access to systems; (iii) institutional strengthening municipal and local services. and support for CCAR to help manage the implementation of the new policy  alochistan Human Development •B framework; and (iv) strengthened program Project (BHDP). The BHDP, targeting management, accountability, and refugees and host communities, aims to monitoring and evaluation. enhance the provision of secondary health and education services and increase the  P Human Development Project •K employability of graduates from higher (KPHDP). The project objective is to education institutes and those enrolled in enhance provision of quality education skills programs, with a focus on improving and health services for both refugees the economic participation of refugees and host communities and increase and host communities. The project will the employability of graduates of support (i) improvements in the higher skills programs in targeted districts. It secondary and college education sector complements activities already underway through teacher training, infrastructure financed by other donors in terms of improvement, and providing teaching primary and secondary education as well learning materials; (ii) improved quality as basic health care. Project components of healthcare services at secondary level are expected to include: (i) expanding hospitals in targeted districts; (iii) improved early education and strengthening the employability through market-relevant higher secondary and college education programs and courses for students; and sector; (ii) skill development and enhanced (iv) capacity building of staff, accreditation employability; and (iii) improved quality of providers, and relevant institutes to better healthcare services in targeted secondary manage their programs and build market level hospitals. and industry linkages. 54 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations Balochistan Rural Transformation Project • (BRTP). The project aims to leverage existing social capital to mobilize rural refugee and host communities around local economic interests and local entrepreneurship across selected value chains in refugee-hosting areas. In doing so, it will aim to develop enterprises and entrepreneurship in on-farm, off- farm, and non-farm sectors; improve local infrastructure and services; provide job opportunities, especially for youth and women; and improve agricultural productivity. The project will aim to leverage digital technologies to enhance outreach in targeted districts. It would build on the experience with the RAHA program implemented by UNHCR and UNDP, but with a shift to country systems possibly by building on the Multi-Donor Trust Fund (MDTF) experience. Section 2 55 2.3 GLOBAL PRACTICES HIGHLIGHTS EQUITABLE GROWTH, FINANCE AND non-violent ways and delivering public goods, INSTITUTIONS IN FRAGILE AND CONFLICT- which is critical to transforming dynamics AFFECTED SITUATIONS and placing countries on pathways towards durable peace and development. GGP is Finance & Markets Global Practice (F&M) engaged across the board, with particular Governance Global Practice (GGP) focus on: i) Understanding and engaging on Macroeconomic and Fiscal Management (MFM) Poverty and Equity Global Practice (P&E) the drivers of fragility (e.g. operationalizing Trade & Competitiveness (T&C) World Development Report 2017), ii) Building core institutions (recurrent cost financing The core work of the five Global Practices and public financial management [PFM] grouped under the heading Equitable operations in CAR, Somalia, selective and Growth, Finance and Institutions (EFI) asymmetric reform strategies with PFM reform supports sustainable and inclusive growth. EFI in Afghanistan, support to effectiveness, provides foundational support for investment efficiency, and sustainability of public spending in human capital and to enhance resilience. in the security sector in various situations Its focus on supporting stable, equitable, and of fragility), iii) Delivering public services efficient markets, institutions, and economies and supporting private sector development provides for an integrated platform of (Program-for-Results [P4R] to address service intervention in FCV contexts. delivery bottlenecks and incentivize concrete service delivery outcomes in fragile contexts), The Finance & Markets Global Practice iv) Providing fiduciary assurance while (F&M) works in FCV environments to strengthening country “SMART” strengthen financial stability and integrity, fiduciary solutions, which allow for real access and inclusion, long-term finance and time oversight, transparency and risk management. The focus is on developing accountability on the use of funds). critical foundations in the form of strengthened supervisory capacity, financial infrastructure The Macroeconomic and Fiscal Management and integrity, while also working on improving (MFM) Global Practice’s strategic approach financial access for SMEs and individuals, to FCS is organized around: i) Monitoring, including those in the agricultural sector. While analysis, and diagnostics of growth and shared most F&M interventions span across all three prosperity using data and tools adapted to stages of the conflict continuum (pre-, in-, violent conflict contexts (recent innovations post-conflict), there is an increased focus on include new economic updates that bring prevention through mitigation and assessment. together data, analysis, and a forward look F&M provides financing and technical that have in many cases been sorely missing), assistance to help mainstream disaster and and ii) financing operations that lock in climate risk management policies into country- macroeconomic stability and create fiscal level strategies, centered around the concept space and promote policy reforms aligned of risk layering. with reconstruction needs while recognizing heightened tradeoffs between reforms and Governance Global Practice (GGP) focuses social stability in these contexts. on building resilient and accountable institutions capable of resolving conflict in 56 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations 2.3 Poverty and Equity Global Practice (P&E) South Asia. The goal is to build a sustainable supports the twin goals in FCV through its key program of data and evidence within the lines of work: i) data collection and statistical context of national surveys in countries around capacity building, as monitoring progress the developing world. Such evidence will be towards the twin goals and working on closing key to designing programs and policies in data gaps is especially relevant in fragile fragile and conflict prone environments for all contexts to shed light on who the poor are, affected populations. with special attention to displaced groups; ii) distributional analysis ex-ante and ex-post, The Trade & Competitiveness (T&C) estimating the impact of policy reforms, GP has built its strategy in FCV-affected programs and crisis or shocks, starting with the countries around FCV dynamics and how recognition of how sensitive these contexts the private sector contributes to achieving are to changes and how social and political peace and stability through recovering from implications influence the cycle of conflict. and mitigating crises, driving growth, and The GP has already initiated work to build supporting resilience and prevention. Each evidence for policy making in FCV contexts. of these dynamics are at work to varying For example, new data was collected in Middle degrees and in different ways in FCV-affected East and North Africa countries (Lebanon, countries, and often need to be addressed Jordan, and Northern Iraq) in 2015/2016, all at once. If the short-term effects of a crisis to assess the impact on host communities are not mitigated, the crisis can escalate and of influxes of Syrian population in these opportunities to drive recovery may not take contexts along several dimensions of living hold. Supporting resilience and prevention of standards and employment. Most household future conflict is always a priority, since conflict survey work in developing countries does not is often cyclical and repetitive. include data on affected populations- i.e., displaced or refugee population; they are only representative of nationals. Similarly, work is HUMAN DEVELOPMENT IN FRAGILE AND ongoing to assess various characteristics of CONFLICT-AFFECTED SITUATIONS the asylum-seeking population in Italy and Education Greece with the objective of understanding Health, Nutrition, and Population (HNP) challenges to integration of this population into Social Protection and Jobs (SPJ) the EU, and on Rohingya refugees and their host community in Cox’s Bazaar in Bangladesh The growth, protection, and productive to monitor their evolving needs. A more deployment of human capital are central to systematic effort is underway to re-assess the the twin goals of eliminating extreme poverty household survey work in a broader range of and boosting shared prosperity. Fragility, countries under the IDA18 support window. conflict, and violence deter all three dynamics Progress has been made in including forcibly of human capital, which makes the World displaced populations in the sample frame Bank’s cross-sectoral engagement in such of upcoming surveys in high priority African contexts especially important. The Bank’s countries like Uganda and Chad, with plans engagement during an ongoing conflict/ to do similarly in Tanzania, DRC and other crisis reflects the realization that humanitarian contexts in Africa, as well as Afghanistan in Section 2 57 assistance needs to be supported by aligned and complementary, and consistent developmental interventions: it is essential to with building longer term resilience. For maintain development assets, both human example, the DARES (Deliver Accelerated and institutional, for there to be a post-conflict Results Effectively and Sustainably) partnership future. Partnerships and multi-sectorality form developed between the Bank, WHO, UNICEF a cornerstone of current Bank work in FCV and WFP is an attempt to ensure better countries. This section of the report provides coordination. Addressing gender-based an overview of the work across the Human challenges in FCV settings also requires a cross- Development Practice Group. sector approach to prevent sexual exploitation, and provide comprehensive support to victims All countries need strong education systems of violence. There is a rich body of knowledge that promote learning, life skills, and within and outside of the Bank that can guide social cohesion. The Education Resilience the development of health operations. HNP’s Approaches (ERA) program is a special set strategic focus will be on: i) developing cross of tools designed by the Education Global country analyses of public interventions in Practice to provide contextual analysis of FCV contexts; ii) identifying innovative service resilience processes in education systems, delivery modalities; iii) supporting analyses of with the goal of contributing to an informed financing approaches in FCV. in-country dialogue on how to align existing education policies, goals, and programs for The Social Protection and Jobs (SPJ) a resilience approach to education service Global Practice engagement in FCV dates delivery. The Education GP also uses other back to the 1990s. With a first generation assessment tools, such as the Recovery of operations centered on social funds, and Peacebuilding Assessment (RPBA) in SPJ had a foundational role in post-conflict coordination with the UN and other partners. reconstruction in fragile countries. A second Education can however contribute to conflict generation of reforms and projects expanded if it reinforces inequities and social injustice SPJ to safety net operations and systems. by denying access to some learners, or if Preparedness and effective response to curricula or teaching practices are biased. In crises is now shaping the SPJ agenda in FCV. fact, much of the early evidence on resilience Adaptive Social Protection (ASP) provides a and education services comes from at-risk flexible approach to building safety nets; the communities in developed countries. In approach centers on identification, targeting, general, the Education GP’s strategic approach and registration of poor and vulnerable in FCV contexts is to engage with both risks households. A dedicated early warning system and assets. within the GP detects crisis risks and allows rapid response and flexibility in project design Managing the humanitarian-development and implementation. This allows social safety nexus is a challenge. In fragile countries, nets to expand quickly in response to crisis and pandemics and other health sector crises shocks. ASP approaches are widely adopted can threaten the viability and capacity of in many countries in Sub-Saharan Africa, the local institutions to deliver basic services. Middle East as well as in Southern Africa. SPJ The mission of the Health, Nutrition, and has developed a new Strategic Framework Population (HNP) GP is to ensure maximum for Jobs in Fragile and a Conflict Situations impact of the Bank’s efforts to coordinate with framework, given their contribution to poverty humanitarian and development actors, to reduction, productivity and economic growth, ensure that incentives and interventions are and their effect on social cohesion and 58 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations reducing the risk of violence. Putting in place enhanced agribusiness opportunities; improved adaptive social protection systems that can land/water management, including an provide appropriate support and response, as expanded area under irrigation; and, enterprise well as jobs strategies, is an important element development – which can support economic to rebuilding the ‘social contract’ between growth and the creation of more, sustainable, government and the people. and inclusive job opportunities for Afghans. A recently released report, Jobs from Agriculture in Afghanistan, highlights how agriculture is an SUSTAINABLE DEVELOPMENT IN FRAGILE essential pillar to address poverty and jobs, and AND CONFLICT-AFFECTED SITUATIONS highlights the role of the private sector and the relevance of the food-water-energy nexus to Agriculture (AGR) stabilization and ultimately, to peacebuilding. Energy and Extractives (EEX) Environment (ENR) Building resilient agricultural systems in fragile Social, Urban, Rural, and Resilience (GSURR) and conflict-affected systems requires both Transport & Digital Development (TDD) the short- and long-term to be considered Water (WAT) in planning, bridging the humanitarian- development divide. Lack of opportunities The Sustainable Development (SD) Practice and unmet aspirations in rural areas breed Group’s core work supports sustainable and fragility, such as rural unemployment or inclusive growth. SD’s strategic objectives of (i) rural-urban migration. Meeting basic needs, (ii) Ensuring sustainability, and (iii) Promoting a long-term perspective The Energy and Extractives (EEX) Global guide the work that all Global Practices Practice work in FCV conditions fall into develop in FCV situations. This section of three broad categories, depending on the the report provides an overview of the work time of intervention. They can either focus across the Sustainable Development Practice on (i) enhancing energy sector resilience, Group, which includes six Global Practices. including by promoting energy security and Collectively, the work of the SD GPs cuts energy poverty alleviation through long-term across all Bank business lines and provides development operations, and contributions important analytical and operational inputs to state-formation, and to peace-building into the Bank’s FCV work. processes; (ii) they can be formulated as an immediate crisis response (in-conflict The Agriculture (AGR) Global Practice works support or responses to refugee crises in in FCS-affected countries to support food neighboring countries); or (iii) they can focus on systems that can safely feed every person, reconstruction of energy sector infrastructure. every day, everywhere; that can increase The EEX GP works in FCV situations through the real incomes of the poorest people; and operational support and analytical and that can better steward the world’s natural technical activities. resources. AGR aims to meet the basic needs for nutritious food, jobs, and livelihoods in The Environment and National Resources FCV-affected countries. In FCV situations, (ENR) Global Practice engagement in Fragile AGR works through operational and analytical State Operations has been traditionally programs. For example, in Afghanistan, the through environmental safeguards. Although GP is supporting a comprehensive agricultural this approach remains a critical element program – that supports improved access to of sustainable operational impact, ENR key inputs and agricultural extension services; is responding to demands to integrate Section 2 59 environmental and natural resource issues In FCV situations, the Transport & Digital into forced displacement work. Examples of Development (TDD) Global Practice views natural resource management impacts include physical and virtual connectivity as a catalyst soil degradation, tree-cutting, artisanal mining, for reducing extreme poverty and promoting bushfires for land clearing, soil degradation inclusive growth even in the most challenging resulting from cultivation of marginal lands, contexts. This strategic approach emphasizes competition for scarce water resources, as well three main areas of impact: (i) promoting safe as pollution from solid, hazardous, and human and affordable physical and virtual connectivity wastes. ENR GP cooperates with humanitarian to grow and integrate economies, connect partners to address environmental sustainability at-risk populations, rebuild social cohesion, in forced displacement activities. Examples of mitigate conflict, and sustain fragile peace; (ii) this include collaboration in Yemen emergency enhance governments’ ability to deliver critical operations with WHO and UNICEF, as well services, including in response to refugee as current work on famine relief in Somalia crises, in order to build state legitimacy and with the ICRC. ENR also contributes to the acceptance of state institutions; and (iii) build FCV agenda by breaking the cycle of poor capable and lasting institutions to deliver governance of natural resources which can resilient development impact, including lead to, finance, and/or exacerbate already- climate-resilient development outcomes. weak governance structures and economies. In FCV environments, the Water (WAT) Global The Social, Urban, Rural, and Resilience Practice interventions address capacity building Global Practice (GSURR) works on FCV of country institutions to provide, protect issues in both low-income and middle-income and preserve water as well as addressing countries as well as in a variety of situations – the immediate needs in situations of conflict from fragile states, in-/post-conflict situations, and crisis. In protracted crises, this requires and sub-national conflict areas, to violent flexibility to respond both to periods of cities and refugee-hosting countries. GSURR development opportunity and to critical needs. work in FCV situations focuses on analytics During positive periods of development for operations and operations. GSURR opportunity, the Water GP works in two areas: has developed its Analytics for operations (i) visible water infrastructure and services, (“peace lens”) and geospatial analysis to such as water supply and irrigation and (ii) enhance real-time analysis and operationalize strengthening water resources management it in conflict situations. A “peace lens” helps and water-related disaster risk management. design projects that address the causes and During shocks and crises, the Water GP consequences of FCV, while proactively and supports and reinforces existing water sector purposively contributes to peace-building. institutions and infrastructure, investments are GSURR operational assessments cover focused on (i) maintaining water and sanitation different areas of engagement including forced services for basic needs, (ii) protecting water displacement assessment; in-conflict damage resources that utilities and populations rely and needs assessments (DNAs); and Social upon from private or factional interests; (iii) Assessments (SAs), among others. GSURR is restoring flood protection infrastructure in engaged in multi-sectoral operations in FCV areas at high risk of flooding. contexts for example, through community- driven development/reconstruction operations in conflict-affected areas, gender-based violence prevention and responses in FCV settings, post-disaster emergency recovery responses, and violence monitoring systems. 60 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations Section 2 61 2.4 PROMOTING PRIVATE SECTOR DEVELOPMENT IN FCS In line with the WBG’s goal of maximizing the markets themselves. As opportunities finance and promoting private sector are unlocked, IFC will invest, bringing best development in FCV contexts, the focus on practices to clients and demonstrating viability. supporting the private sector’s growth is IFC will scale up through platforms, deliver increasing. IFC works directly with private new Advisory Services aligned to the strategy, companies to increase private sector and enhance mobilization capacity to crowd in investment in FCS; similarly, MIGA, through private finance. its political risk insurance, supports private investors in these markets. The joint World IFC’s focus is on the most challenging Bank-IFC Global Practices T&C and F&M markets where the potential for greater assist governments in creating the enabling private sector investment exists. IFC’s environment for private sector growth, through strategic focus on FCS is joined by a focus on investment climate reforms and development Low-Income IDA Countries (LICs) due to the of financial infrastructure, respectively. recognition that many low-income countries Additionally, both the WB and IFC have groups face similar obstacles in attracting private working closely on Public Private Partnerships sector investment and face a similarly acute (PPPs) that increase private investment for need for increased economic opportunities— critical infrastructure. Finally, several other GPs challenges which may increase fragility advise on policy reforms that can facilitate and conflict. Specific targets for FCS, tools private investment in their specific sectors. designed for FCS, and close monitoring of Coordinated efforts across the WBG have IFC’s engagement in FCS, however, been taking shape to help harness the private remain in place. sector’s potential to deliver much-needed Strategic approach to FCS and LICs. In economic growth, job creation, and other addition to making FCS and low-income benefits in FCV contexts. IDA a key component of IFC 3.0, IFC has developed a clear strategy to guide its work in these difficult markets. This includes a INTERNATIONAL FINANCE CORPORATION differentiation of country contexts, so that IFC A. Strategic Approach can 1) prioritize those markets most ready for increased private sector engagement and 2) FCS is a critical component of the work with the World Bank and other partners to International Finance Corporation (IFC)’s help put in place the conditions necessary for overall strategy. IFC’s new strategy, “IFC increased private investment. IFC recognizes 3.0–Creating Markets,” aims to stimulate more that a more coordinated approach is required investment activity with a focus on investments to effectively expand the pipeline of bankable in FCS and low-income IDA Countries (LICs). private sector projects, and will continue to To that end, IFC will aim to support clients in expand its collaboration with World Bank riskier markets, and proactively work in these counterparts regarding upstream reforms that countries to create, deepen, and expand 62 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations 2.4 address market failures and other constraints to understanding of the context, IFC plans to private sector investment. Additionally, IFC will devote more staff to locations in, or close to, deploy Advisory Services to help deepen the these markets.20 impact of its investments and to identify and create new market opportunities—targeting A dedicated FCS platform in Sub-Saharan regulatory barriers to investment, helping new Africa. IFC’s FCS Africa Program is a and existing clients build capacity to overcome comprehensive platform for both Advisory investment constraints, and developing and Investment teams dedicated exclusively bankable projects. to conflict-related situations in Sub-Saharan Africa. Experiences in FCS have shown New tools and resources for increased that critical success factors to bring private engagement. In FY18 and beyond, IFC will sector development to these challenging deploy tools and instruments to unlock private markets are long-term engagement, market sector potential, most notably, the IDA18 intelligence and flexible funding. The FCS Private Sector Window (IDA PSW) and Creating Africa Program provides IFC teams with an Markets Advisory Window (CMAW), both enabling platform through a combination of described in further detail below. These tools presence on the ground and flexible funding will support increased engagement in FCS by, for advisory services, removing bottlenecks for example, eliminating upstream bottlenecks to investments and knowledge management. or de-risking investments. To operate in It also facilitates coordination among World these complex markets and to have a good Bank teams at country and sub-regional TAKING A CONFLICT SENSITIVE APPROACH IN SUB-SAHARAN AFRICAN PROJECTS To enable private enterprise to play a catalytic role in breaking the cycle of fragility and conflict, IFC needs to work differently to support the private sector in FCS markets. IFC’s FCS Africa Program has developed a conflict-sensitive approach to help identify and navigate the complex workings of FCS where risks and dangers are commonplace, but not always obvious. The FCS Africa Program takes both macro and micro level approaches. At the macro level, country analysis is conducted with the Conflict Research Unit of the Clingendael Institute of the Netherlands. To date, two in-depth studies were completed: in Zimbabwe and Somalia. At the micro level, project analysis, which complements the work done at the country level, is implemented jointly by field-based country coordinators and operational teams. IFC has applied its conflict lens in 13 conflict-affected Situations in Africa.21 IFC’s approach relies partly on a ‘hub’ model, which locates staff in regional offices to be deployed as needed to nearby markets. 20  This is in recognition of the fact that in some FCS, few investment opportunities exist, and this presents challenges to the need for efficient use of resources. That said, there are a number of FCS in which IFC staff are located based on the market activity. CASA countries include Burundi, CAR, Côte d’Ivoire, DRC, Guinea, Liberia, Madagascar, Mali, Malawi, Sierra Leone, Somalia, 21  South Sudan and Zimbabwe. Section 2 63 level. An overwhelming 82 percent of IFC’s B. Pipeline FCS investments in Africa have happened in IFC has achieved a shift in focus over the countries where the FCS Africa team is present past few years in increasing its investments on the ground. In FY18, IFC plans to replicate in FCS. It exceeded its goal of achieving, by aspects of the FCS Africa model in other FY16, a 50 percent increase in annual own- regions to scale up its impact in FCS markets. account investment commitments in FCS over the FY12 baseline. In FY17, 5 percent of IFC’s IFC coordination with the FCV Group. total long-term finance volume and 20 percent As part of IFC’s alignment with a WBG of its Advisory Services program were in FCS. approach to FCS, IFC’s dedicated FCS/IDA While IFC is gearing up to do more in FCS, Coordination Unit will also engage on joint it is worth noting IFI is already the leading activities with the World Bank’s FCV Group. international financial institution (IFI) in private These will include a further integration of the sector investment in FCS (2015-6 data), as two units’ thought leadership and knowledge- illustrated in Figure 8.22 sharing activities, as well as further integration of FCV-focused staff training. FIGURE 8: IFI PRIVATE SECTOR COMMITMENTS (TOTAL 2015-2016) The IFC benchmarking study assesses data from IFC, the Asian Development Bank, African Development Bank, the UK’s CDC, 22  the German Development Bank (DEG), European Bank for Reconstruction and Development, the European Investment Bank, Finnfund, the Dutch Development Bank (FMO), Inter-American Development Bank, Inter-American Investment Corporation, the Danish Development Bank (IFU), Islamic Development Bank, Nordic Investment Bank, the Overseas Private Investment Corporation (OPIC), Proparco and Swedfund. 64 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations FIGURE 9: ADVISORY SERVICES PROGRAM SPENT IN FCS, FY 12-17 In FCS and low-income IDA countries Concurrently, IFC’s advisory activities in FCS combined, in FY17, IFC total long-term have averaged approximately $40 million finance volumes and project count reached per year in expenditure, representing about 8 percent and 18 percent, respectively. 20 percent of IFC’s overall advisory program Additional resource redeployment to (see Figure 9). IFC’s activities in FCS and low- implement IFC 3.0 approaches and income IDA countries are expected to get a instruments, such as the Creating Markets boost from the CMAW, which is designed to Advisory Window and the IDA18 Private Sector unlock investment opportunities in relation to Window, will further boost support for FCS and markets, clients, or projects. low-income countries. By FY20, IFC aims to achieve a 60 percent increase over the FY14-17 C. Innovating for Impact average investment volume in these markets The following examples indicate IFC innovative (including own-account and mobilization). With approaches in FCS markets, including a focus the IDA PSW, IFC expects not only a larger on sectors where increased collaboration pipeline in FCS and LIC but also the ability to between IFC and the World Bank has invest in new sectors and approaches. generated opportunities for impact. Section 2 65 INVESTING IN DIGITAL INFRASTRUCTURE IN AFRICA IFC’s Digital Infrastructure Initiative (DII) is an example both of IFC’s new initiatives and its increased efforts to coordinate with the World Bank for unlocking private sector potential. With broadband penetration of only around 6%, Africa is substantially behind the rest of the world and other emerging markets. Despite abundant international bandwidth from several submarine cables, the continent remains largely “unconnected” due to insufficient terrestrial infrastructure. This remains a key obstacle to Africa realizing its tremendous human and economic potential. There is compelling evidence that better broadband connectivity leads to overall economic growth by directly impacting job and skill creation, productivity, entrepreneurship, government transparency, social inclusion and gender equality. Furthermore, due to connectivity gaps, multiple socio-economic benefits delivered by broadband – known as “digital dividends” – are not sufficiently supplied or fairly distributed. In August 2016, a joint WB/IFC taskforce formed to undertake an ambitious program of policy reform and private investment in Africa’s broadband sector through: (i) development of “open access” broadband infrastructure projects; (ii) regulatory assistance to governments; and (iii) strategic partnerships with other investors for commercially viable projects. The initial diagnostics of over 30 countries are underway. In opening the broadband market to new opportunities, the WBG will leverage its expertise to help governments develop telecom sector policies conducive to competition, investment and further sector growth. IFC brings extensive sector knowledge and investment experience, particularly, in financing complex broadband infrastructure deployments in other emerging markets, along with proven capacity to mobilize continued private capital. The program is expected to deploy up to $4 billion over the next ten years and to provide internet access to 200 to 250 million people. BRINGING ENERGY TO MYANMAR THROUGH AN INTEGRATED WBG APPROACH Myanmar has one of the lowest electrification rates in the world, with less than 30% of the population having access to electricity and annual per capita electricity consumption at less than 100 kWh. As access to electricity is a key driver of economic and social development, the WBG is taking a coordinated and integrated approach to mobilize public and private resources, to help alleviate acute electricity shortages and increase people’s energy access. A combination of WB credits and technical assistance, and IFC’s advisory services, long-term investment, mobilization, and sector expertise have improved the investment environment in the power sector. 66 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations In 2012, the World Bank Group prepared an Interim Strategy Note to guide the Bank’s activities as part of the organization’s re-engagement with Myanmar. In 2014, the World Bank helped the Government of Myanmar develop a National Electrification Plan (NEP), with the goal of bringing electricity to everyone in Myanmar by the year 2030. This means 7.2 million new household connections over the next 15 years, requiring a doubling of the current rate of grid extension. In September 2015, the Bank approved a $400 million IDA credit to Myanmar for technical assistance for the NEP that includes grid extension and off-grid electrification. IDA and IFC advise the Government on tariff reforms and power sector viability. The WBG achieved another recent success with the Ministry of Electricity and Energy committing to a systematic increase in retail tariffs to achieve full cost recovery for the power sector over the next five years without which the burden on the government would become unsustainable and the private sector would be unwilling to invest. An important recent achievement is the restructuring and corporatization that has been initiated in the power distribution sector. To improve performance and overall efficiency in power distribution, the Government of Myanmar is corporatizing the Yangon Electricity Supply Board (YESB) with support from IFC. The WBG has actively engaged with key government decision makers, building trust and providing support on key policy and regulatory decisions in the power sector. In 2013, it was decided that the refurbishment of the Thaton gas-fired power station would be funded by the public sector using a $140 million IDA credit. A year later, IFC worked with the Ministry of Electric Power to structure an independent power project (IPP) transaction for a 225-megawatt gas-fired power plant in Myingyan, near the Mandalay region—the largest of its kind in the country. The model power purchase agreement (PPA) developed by IFC and Allen & Overy as part of this transaction is precedent-setting and will help Myanmar attract further foreign direct investment by providing a template for future PPAs. The Myingyan gas-fired power plant is the first IPP project in Myanmar to be awarded through a transparent international competitive bid, leading to “price-discovery” and setting a credible benchmark for tariffs in the country. IFC is providing long-term debt financing to the private operator of the plant and mobilizing parallel loans from commercial banks. This transformational project is poised to become one of the most efficient, lowest cost gas-fired IPPs in the country, providing access to improved electricity services to over 1.5 million people daily and facilitating over $300 million in private investment. Myingyan was expected to reach financial close in December 2017. IFC will commit $58 million and sell down $20 million to the Asian Infrastructure Investment Bank (AIIB). Section 2 67 MULTILATERAL INVESTMENT and development impact. In pursuit of GUARANTEE AGENCY this objective, from FY14 to FY17 MIGA’s guarantees in FCV have represented over A. Strategic Approach 10% of the Agency’s rapidly growing portfolio. Supporting private sector development in MIGA works with private sector investors and settings of fragility, conflict, and violence other partners in the development community is a core objective of the Multilateral to seek out projects with a significant Investment Guarantee Agency (MIGA)’s development impact that are environmentally FY18-FY20 strategy. While FCV has been and socially sustainable. MIGA’s presence can a strategic focus of MIGA for almost two help in restoring investors’ confidence, reverse decades, MIGA’s 2020 strategy reinforces the flight of private capital and encourage its commitment to expand its engagement new investment. in FCV environments. Private sector insurers MIGA’s ability to do more in FCV settings typically are unwilling to work in FCV settings, will be supported by two new initiatives: and foreign investors perceive heightened the IFC-MIGA Private Sector Window (PSW) political risks in these situations. MIGA’s and Maximizing Finance for Development. mission is to provide political risk insurance in The FY18 launch of the MIGA Guarantee these circumstances so that underlying risks Facility (MGF) is part of the innovative $2.5 can be mitigated, and there can be a positive billion PSW—an important pillar of the impact on private investment flows into these IDA18 replenishment. The $500 million challenging environments. MGF is expected to increase the reach of MIGA’s strategic approach to working MIGA’s traditional political risk insurance in FCV has been to grow the Agency’s products in markets where currently these are contribution by increasing its presence underutilized, including in FCV, by helping 68 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations to expand the coverage of MIGA guarantees private sector investment well beyond the through a shared first-loss structure and MIGA- supported initial investment. From through a risk participation mechanism FY14 to FY17, MIGA issued over $1 billion in akin to reinsurance. guarantees in FCV countries. These guarantees in turn helped to support $3 billion of capital MIGA’s objective to increase its flows into these countries. Looking forward, development impact in FCV will also be MIGA’s objective is to work to augment private supported through the WBG’s efforts to flows in challenging environments well beyond Maximize Finance for Development by MIGA’s directly supported projects. seeking to leverage the private sector and optimize the use of scarce public resources. B. Pipeline Two of nine pilot countries identified to launch The Agency’s support of projects in FCV has this initiative are FCV, an indication that this grown significantly. MIGA’s gross portfolio in initiative can help address binding constraints FCV has increased rapidly from $1,402 million even in the most challenging environments. as of end-June 2014 to $1,746 million as of Working closely with the IFC and the World end-June 2017 (see Figure 10). Bank to identify the sequenced actions needed at the country, sector and project level, Most of MIGA’s present gross exposure in MIGA will use the new focus of Maximizing FCV is in the infrastructure and oil and gas Finance for Development to help unlock sectors, together accounting for 86% of newly-identified private sector opportunities, MIGA’s gross outstanding portfolio in FCV at including in FCV. end-June 2017 (see Figure 11). As measured by outstanding gross exposure at end-FY17, MIGA’s political risk insurance instruments the majority of MIGA-insured investment are especially applicable to FCV settings. projects in FCV have been in Sub-Saharan MIGA offers coverage against war and civil Africa, reflecting the distribution of FCV disturbance, expropriation, breach of contract, settings globally, followed by East Asia and and currency transfer and convertibility risk— the Pacific Region. risks that private investors seek to mitigate when investing overseas and especially in FCV. Moreover, MIGA, as a multilateral institution with 181 shareholders, can play a unique role as an “honest broker” to address investment disagreements before they escalate unduly— an especially important role in unfamiliar FCV environments. MIGA’s approach in FCV is also to leverage the knowledge of the WBG. MIGA uses its country expertise to provide investors with the benefit of its in-depth understanding of country risk environments that private investors may lack, particularly in FCV states. By helping to bring investors into projects that are high profile and have high national importance, MIGA can have a powerful demonstration effect that can mobilize Section 2 69 FIGURE 10: OUTSTANDING GROSS EXPOSURE IN FCV FY14-FY17* Source: MIGA Issuance and portfolio data. *Uses FCV harmonized country classification of FY17 and includes exposure from MIGA administered trust funds. FIGURE 11: OUTSTANDING GROSS EXPOSURE IN FCV BY SECTOR AT END FY17* Source: MIGA Issuance and portfolio data. *Uses FCV harmonized country classification of FY17 and includes exposure from MIGA administered trust funds. 70 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations MIGA is looking to increase its exposure and the installation, operation and maintenance development impact in FCV as it implements of telecommunications networks, wireless its 2020 strategy. Going forward, MIGA communication services, internet and satellite is expecting to see infrastructure projects services, and even public pay phones. MIGA’s constitute most of the projects supported in support of telecoms projects is especially FCV, a reflection of the huge infrastructure prevalent in FCV settings. For example, in gap that exists in these settings. The regional Afghanistan MIGA successfully supported the distribution of MIGA projects is also expected initial phase and then expansion of the GSM to follow a similar pattern as in the past with an network, wireless communications and internet emphasis on Sub-Saharan Africa. services. In the Central African Republic, a MIGA political risk insurance guarantee C. Innovating for Impact helped support the installation, operation, MIGA has been active in FCV with and maintenance of a state of- guarantees backing private sector projects the-art telecommunications network. in the real economy. Most of these projects On trade logistics, MIGA has been involved have development impact beyond the direct in providing guarantees to projects in contribution of the projects themselves. FCV that facilitate exports as well as the Therefore, while the dollar value of MIGA movement of goods into ports of entry and projects in FCV is typically smaller than in out to inhabitants. For example, in Djibouti non-FCV situations, their development impact MIGA enabled the development, design, can be far greater. This is illustrated in the construction, management, operation, and sectoral nature of the projects that MIGA maintenance of a new container port terminal, has supported, which has often been in located in the city of Doraleh. In Iraq, MIGA is infrastructure sectors that support connectivity. providing a guarantee to a Jordanian company It has also been evident in the role that focused on the movement of goods in and MIGA projects often play in supporting the out of Umm Qasr Port by means of reducing development of a positive environment for congestion of trucks at the port gates. It does private sector investment. this primarily via technological devices and The many MIGA projects in FCV that algorithms that enable rapid identification, facilitate connectivity contribute to queuing, and processing in a transparent way. economies of scale and network effects. In the Republic of Congo and Togo, MIGA is These types of projects are particularly successfully assisting on the customs side by important to increase information flows in enabling outsourcing of customs inspections FCV settings, as well as the movement of to the private sector. goods and people, and transparency and MIGA has also insured the financing of trust. Such projects thereby indirectly the construction of the Henri Konan contribute to mitigating aspects of the Bédié (HKB) toll bridge in Abidjan, Côte conflict and to creating positive development d’Ivoire. The project was also supported by prospects going forward in FCV settings. IFC, which assisted the Government of Côte For example, MIGA political risk insurance d’Ivoire in drafting the concession agreement. guarantees in FCV have been deployed Government reforms in the transport sector in the telecommunications, trade logistics supported by the World Bank provided the (including ports and customs), and necessary enabling environment. Lessons transport sectors. Telecoms generally involve from MIGA, IFC and the World Bank’s early enabling and expanding access through involvement in the construction of the HKB Section 2 71 FIGURE 12: PPP INVESTMENT AS A PERCENTAGE OF GDP (2007-2016) Source: World Bank - May 30th, 2017 / Note: Data excludes ICT, divestitures and merchant. Rest of EMDE are all countries not classified as FCS during 2011-2015 excluding India, Brazil, and China. Bridge are being used to inform planning for BRINGING THE PUBLIC AND PRIVATE the proposed fourth and fifth bridges being SECTORS TOGETHER: PPP IN FCS considered by the government for Abidjan. A. Main Trends affecting the PPP Overall, MIGA’s involvement helps to bring market in FCS transparency to projects in FCV situations. Financing infrastructure projects in FCS Often the rule of law may be weak or laws can be challenging and especially so when may contribute to discouraging private sector there is private sector involvement, as investment and encouraging weak governance most private investors have relatively low practices—both of which directly or indirectly appetite for risk. This is reflected in the lower may be connected to the conflict. MIGA’s levels of Private Participation in Infrastructure contribution in these situations goes beyond (PPI) investment23 in FCS, which accounted for the direct project level benefits to help mitigate less than 1% of total global PPI investment in the impact of the conflict on the business 2016. Almost three-fourths of the cumulative environment and by doing so, helps to catalyze PPI investments in FCS over the last five-year future private investment flows into these period have been concentrated in the Energy challenging environments. Sector. The two projects recorded in FCS in PPI database records investments commitments at financial closure. 23  72 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations FIGURE 13: PPP INVESTMENT BY SECTOR AND NUMBER OF PROJECTS IN FCS COUNTRIES 2007-2016 Source: World Bank - May 30th, 2017 / Note: Data excludes ICT, divestitures and merchant 2016 received support from IFC, while only 10 so in one or two years and brought no projects out of the 34 projects recorded in the project to financial closure in the rest of five-year period from 2011-2015 received some the years. This illustrates their difficulties form of multilateral support. in remaining present in the market. The State of PPP in FCS24 is an on-going PPP Investments in FCS countries were research project led by the Infrastructure, mainly concentrated in energy and PPPs & Guarantees (IPG) Group, that provides particularly in small renewable energy projects. an assessment of the broad trends of Public Energy was also the sector with higher Private Partnerships (PPP)25 in FCS:26 concentration of greenfield projects and therefore the sector that generated more new Investments in FCS countries remains • assets among projects in FCS countries. low in absolute numbers as well as a percentage of GDP. Levels have increased  ontrary to perception, projects originated •C in recent years but mainly driven by a few through unsolicited proposal and projects countries, Colombia, Nepal and two IBRD/ awarded through direct negotiations are as Blend countries. Except for these four frequent in FCS countries as in the rest of countries, the remaining 17 FCS countries Emerging Markets and Developing that had projects in the past five years did Economies (EMDE). Annex 2 24  It excludes divestitures and merchant projects from WB PPI database. 25  Please note, the research applied broader definition than that of Harmonized List of Fragile Situations. The research defines 26  FCS as countries with CPI less than 3.2., presence of UN Missions, and Refugees/IDP comprising more than 1- percent of the population. As a result, 61 countries are analyzed in the research. Section 2 73 FIGURE 14: PPP PROJECTS IN FCS AND REST OF EMDE BY SECTOR (PERCENTAGE) 2012-2016 Source: World Bank - May 30th, 2017 / Note: Data excludes ICT, divestitures and merchant. Rest of EMDE are all countries not classified as FCS during 2011-2015 excluding India, Brazil, and China. The proportion of projects receiving direct • Cancellation rate for PPP projects in FCS government support was higher for countries (5.1%) was only slightly higher FCS countries than for the rest of EMDE than in the rest of EMDE (3.6%) and and the support in FCS projects was lower when assessing cancellations by almost exclusively capital subsidies. The percentage of investments (3.2% and proportion of projects receiving guarantees 5.8% respectively) indicating that did not differ between the two groups. smaller projects were canceled. However, exchange rate, interest rate and construction cost guarantees were more B. Opportunities for the World Bank Group frequent in projects in FCS countries. and IPG Group: Given the vastly growing and unmet demand The proportion of projects receiving MDB • for infrastructure in FCS, there is a strong support as well as bilateral support was need and ample opportunity for the World higher in FCS countries than in the rest of Bank Group to assist with channeling private EMDE for any type of support. Loans were investment into infrastructure in FCS. The IPG the most common type of MDB support to Group can contribute in: projects in FCS countries.  ringing together different WBG •B Private financing was less significant in • teams and products such as loans, TA, PPP projects in FCS countries while MDB transaction advisory support, strategy and and particularly bilateral banks contributed planning linked to capital mobilization, to a large share of financing. International equity and debt investments, and commercial banks had a significant role guarantee instruments only in upper middle-income countries. 74 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations • Support in the development of  ffectively deploying the most •E appropriate prioritization techniques for appropriate credit enhancement sector project selection and development techniques utilizing the WBG of suitable funding and financing options instruments from WB, IFC and MIGA. and solutions • Post transaction support: • Upstream (Pre-project) Preparation: • Contract compliance and monitoring Institutional and regulatory support • for PPP laws, enabling environment, • Support to regulatory functions creation of PPP unit or regulator,  pecific technical and •S institutional capacity building commercial advice initiatives etc.  tructure additional interventions •S Developing a viable and credible • complementary to the PPP transaction project pipeline with other WBG interventions, • Mobilizing preparation funds, for example in support of a sector feasibility assessments, and other e.g. funding of a regulator advisory support in order to structure  nowledge and analysis, sharing •K bankable projects of best practices and understanding Project development/ • of trends transaction support: C. Upstream Support–Public – Private •  Developing and supporting Infrastructure Advisory Facility PPIAF specific transactions with high Since its establishment in 1999, the WBG’s quality transaction advisers and Public – Private Infrastructure Advisory government project teams Facility (PPIAF) has facilitated private investment in infrastructure and been Assisting with preparing bid • a catalyst for increasing private sector documents with appropriate risk participation in emerging markets. Through allocation, including drafting grants and technical assistance, PPIAF helps suitable contracts governments of low and middle-income and fragile countries to create a sound Communicating the benefits sought • enabling environment for private investment and the importance of the transaction in infrastructure. In recent years, PPIAF has with stakeholders dedicated between 10 and 15 per cent of its • Mobilizing WBG products to assist with program budget to fragile countries. Currently, credit enhancement/cover risks/create PPIAF has 30 countries selected for more a “halo effect” systematic and focused support, 9 of which are fragile countries.27 PPIAF also develops new knowledge28 through research and helps make Afghanistan, Côte d’Ivoire, Djibouti, Haiti, Madagascar, Myanmar, Papua New Guinea, Somalia, West Bank & Gaza 27  One example of knowledge work focused on FCS is ‘State of PPPs in Fragile and Conflict States.’ The objective of this study is to 28  assess private participation in infrastructure (PPI) investments in FCS countries and examine the links between regulatory reforms and PPP investments. It will also identify the main challenges to develop more sustainable and robust approaches to support PPPs in FCS countries. Section 2 75 existing knowledge more accessible to policy (LNG) PPP project in the country. The project makers and other stakeholders. The offerings will support 1,680 MW in planned gas-fired aim to identify solutions to infrastructure generation capacity, in addition to the 1,820 challenges and disseminate the best practices MW of existing generation capacity, increasing and lessons learned through PPIAF’s technical- Myanmar’s generation capacity by 40% and assistance activities which captures unique supporting a diversification in the country’s situations in fragile countries. Understanding energy mix. The GIF activity includes support the drivers for fragility vary significantly, and for: technical feasibility study; environmental responding effectively to fragility requires and social assessment; regulatory and contract customized approach, PPIAF has come up with review; capacity building; and transaction a new strategy for operation in fragile countries advisory support. in FY18-22 (annex 3), emphasizing a pragmatic, opportunistic, and flexible approach. E. Downstream Support-Financial Solutions’ Work in FCS D. Midstream Support-GIF While the need to build and develop new The Global Infrastructure Facility (GIF) is infrastructure in developing countries is a global open platform that facilitates the vast, it is even more so in FCS countries. preparation and structuring of complex Government alone cannot meet all these infrastructure PPPs to enable mobilization needs given the urgency and the funding it of private sector and institutional investor requires. The World Bank Group has helped capital. The GIF works with MDBs, such as the governments bring in private sector investors World Bank and IFC, to support governments to contribute towards new infrastructure in bringing well-structured and bankable development. Through a risk mitigation infrastructure projects to market. The GIF instrument, Financial Solutions has been platform coordinates and integrates the working with the government to improve efforts of MDBs, private sector investors and bankability of these projects so they can attract financiers, and governments to mobilize private the much-needed private sector investment. investment and long term commercial financing In addition to the Myanmar energy for infrastructure projects. sector projects, Sierra Leone and Afghanistan are noteworthy examples. The GIF focuses on complex projects and investment climates, such as those found In Sierra Leone, the WBG team has jointly in fragile states. In four fragile countries, developed the Western Area Power Generation the GIF is supporting the first PPP projects Project, the first Independent Power Producer in key infrastructure sectors. Among them (IPP) project in the country. This project is Myanmar, where the GIF is supporting also marks the first joint World Bank Group transaction advisory provided by the IFC’s PPP Advisory Team for the first liquefied natural gas 76 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations operation in Sierra Leone and serves as an important signal to the private sector that the country is ready for investments even as it continues to recover from the Ebola epidemic in the context of a fragile economy. In Afghanistan, the WBG team is currently developing two private sector projects. The first one is Mazar IPP project, a 50MW • greenfield gas power plant. While the project is still at an early stage of preparation, the proposal is for the IFC to provide long-term financing to the project company, whereas the Bank will use its risk mitigation instrument to backstop certain government obligations towards the private sector project company in the event of termination. The second one is Kajaki hydropower • project, a brownfield project that involves an expansion of an existing power plant, from current 51MW to 151MW (i.e. adding new capacity of 100MW). The proposal is for private sector investors to take over the operation of the existing assets, while at the same time investing in expanding the capacity of the project. This project is unique in nature, not just because it is in Afghanistan, but because it is located in the Helmand Province, one of the most insecure regions in the country. The development impact of the project is significant, as it will provide electricity to the region that is starved of it, and at much cheaper price. Section 2 77 78 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations Section 3 Global Engagement, Innovative Solutions GENDER IN FCS of understanding why conflict occurs, and its impact on communities and their resilience, Addressing gender disparities in fragile and but may also offer insights on how to prevent conflict affected settings promotes peace conflict from re-occurring. and security. Women and men, boys and girls, experience conflict and fragility differently, and The WBG is addressing the gender-specific play different roles in generating, resolving impacts of conflict and fragility on various and preventing conflict. Women and girls fronts. Large investments have been made are among the groups most vulnerable to into preventing and responding to GBV, violence and conflict, and often the most recognizing its use as a weapon of war—mainly, vulnerable to its indirect effects, such as but not exclusively, against women and girls— poverty and mortality as a result of increased during conflict and in situations of forced exposure to Gender-Based Violence (GBV),29 displacement. Levels of GBV, including Intimate acute malnutrition, infectious disease, poor Partner Violence (IPV) tend to rise with conflict sanitation and a lack of health services. As with far reaching consequences for mental a rule, women are marginalized in efforts at health, productivity, labor market participation prevention of conflict and peacebuilding, and economic growth. GBV is also believed yet when given the chance, have played to catalyze further violence and increase instrumental roles as agents of change and the risk of conflict reoccurrence, and is thus leaders in the prevention of violence within an impediment to efforts at peace and their communities and countries. Men and stability efforts. boys represent the majority of mortality rates The Bank recognizes that an effective in conflict, with large demographic, economic response to the dynamics of conflict and and social repercussions on households and violence must engage men and boys communities. The mental health consequences in championing gender equality. An for men and boys having engaged in conflict increasing number of operations are studying and the issues related to reintegrating into and addressing the role of male identity, society, including accessing the labor market, masculinities and power dynamics in conflict are often overlooked, yet fundamental to and violence prevention. It is important that the rebuilding of societies and prevention of the Bank increases its focus on the reasons further violence, including GBV. Gender roles that drive men, but also women, to engage in and social norms embedded in society are conflict and violence in all its forms. Operations often at the heart of understanding violence also address the successful reintegration of and conflict. Understanding the different both male and female ex-combatants into vulnerabilities and needs of men and women society and households, including livelihood in FCS and, importantly, their agency to create and psychosocial support, and prevention of peace, not only offers a more nuanced way GBV within the household. According to GBV Guidelines, ‘Intimate partner violence’ applies specifically to violence occurring between intimate 29  partners (married, cohabiting, boyfriend/girlfriend or other close relationships), and is defined by WHO as “behavior by an intimate partner or ex-partner that causes physical, sexual or psychological harm, including physical aggression, sexual coercion, psychological abuse and controlling behaviors.” This type of violence may also include the denial of resources, opportunities or services. Section 3 79 The gender dynamics of forced displacement AN OVERVIEW OF GENDER GAP are increasingly being studied and ADDRESSED IN OPERATIONS IN FCS addressed. The Bank is developing new operations and approaches to respond to the In FY17, 188 projects were working to needs of refugees and host communities. As address specific gender issues and close part of this, an increased focus is placed on gender gaps,30 49 of these in fragile challenges faced by women and girls during and conflict affected settings (as per flight and in refugee camps, and helping the harmonized list of fragile states).31 to improve the conditions and economic 10 projects are operating in countries opportunities for them in host communities. experiencing drivers of fragility that put them at risk of conflict, including Angola, Tunisia, Conflict and its aftermath can open new Egypt, Guinea, Nepal, Niger and Tajikistan, opportunities for women, as it allows them to where issues such as the prevention of GBV live outside of traditional societal structures and and the creation of opportunities for women’s gender norms that may otherwise limit them. equal participation in society are key to In some countries, there is evidence of women preventing conflict. In countries experiencing being able to play more active leadership subnational conflict, including in Cameroon, and economic roles during and after conflict, Pakistan, the Philippines, Nigeria, and the learning new skills and creating livelihood for Ukraine, 15 projects included components themselves, and contributing to rebuilding aimed at increasing women’s empowerment local economies and communities. The Bank through the conflicts. There were also 10 recognizes that investing in the economic projects working in countries that experience empowerment of women, is also investing regional drivers of FCV and/or situations of in peace and development. As this chapter forced displacement, such as in Ethiopia, will show, the WBG is supporting women’s Jordan, Kenya and Turkey, with considerations access to economic opportunities, including to women and girls’ vulnerabilities and employment and skills training. It facilitates possibilities to re-building their lives. Finally, 5 women and girls’ access to assets and services, projects that specifically benefit women were education and health services, and is a strong tagged in Yemen, which is experiencing an supporter of women’s entrepreneurship active conflict, and 2 in Madagascar, which has and social enterprises for resilience and been emerging from its longest political crisis. peacebuilding. Working closely together across global practices and cross-cutting areas, in The majority of projects that address unison with the private sector and humanitarian gender disparities and vulnerabilities are actors, the WBG is increasing opportunities for led by the global practices GSURR, MFM women and girls in FCS. and SPJ, followed by the GOV, HN&P, and Transport & Digital Development GPs. As the implementation of the WBG Gender Strategy increases, we expect to see a rise in operations that address and seek to reduce gender disparities and vulnerabilities, and help to create opportunities for women’s leadership and economic empowerment in FCS. These are operations marked according to a new World Bank monitoring system for operations entitled ‘Gender Tag’, launched 30  in January 2017. This distinguishes and highlights projects and programs that identify relevant gaps between women and men, boys and girls, aim to address these gaps through specific actions supported by the project, and link them to indicators in the results framework. http://www.worldbank.org/en/topic/fragilityconflictviolence/brief/harmonized-list-of-fragile-situations 31  80 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations FIGURE 15: NUMBER OF PROJECTS ADDRESSING GENDER GAPS IN FCS The following sections provide select examples manifestation of GBV, and to respond in of the sorts of investments the WBG has made a survivor centered manner should to date to address gender in FCS. incidence of SEA occur.” A STRONG WBG RESPONSE TO The World Bank Group and the Sexual GENDER-BASED VIOLENCE Violence Research Initiative (SVRI) have partnered up to create the Development GBV in fragile and conflict affected settings Marketplace (DM) for Innovation on GBV is manifested through, but not exclusive to, Prevention and Response. The DM, a forms of sexual violence as a weapon of war, crowdsourcing method, has awarded more interpersonal violence in the household and than $65 million in grants to more than 1,200 in public, Female Genital Mutilation (FGM), innovative social enterprises, and raised the trafficking, child marriage and harassment. The profile about the role of social enterprises in Bank has dedicated a number of operations to addressing challenges facing the poor. Projects mitigating and preventing GBV. A selection of are currently active in 12 countries, including these are presented below. several FCS; Solomon Islands, Uganda, Global initiatives to inform and support Pakistan, Nigeria, Honduras, Kyrgyzstan, programming on GBV Peru, Egypt, Jordan, Uganda, Swaziland, and the Dollo Ado refugee camp in Ethiopia. Global GBV Task Force: At the initiative of WBG President Dr. Jim Yong Kim, the Global The State and Peacebuilding Fund GBV Task Force was established with the allocated $1.0 million in FY17 to support mission to strengthen the Bank’s “capacity the preparation of operations which to identify, mitigate and prevent risk of include a GBV component. sexual exploitation and abuse (SEA), as a Section 3 81 The Violence Against Women and Girls A SELECTION OF GBV OPERATIONS (VAWG) resource guide was developed through a partnership between the Global Multi-regional operations Women’s Institute (GWI) at George Washington The Great Lakes Emergency Sexual and University, the Inter-American Development Gender Based-Violence and Women’s Health Bank (IDB), and the World Bank Group (WBG). Project is a Regional intervention covering The VAWG resource guide highlights evidence- Burundi, the Democratic Republic of Congo based practices to reduce VAWG and promote (DRC), and Rwanda and providing support women’s rights, including highlighting the to the International Conference of the Great operational implications that VAWG can have in Lakes Region (ICGLR), an intergovernmental several priority sectors of the IDB and WBG. organization with 12 member states. The project draws on lessons-learned and global The Global Platform on Sexual and Gender best practices in GBV programing, and on Based Violence, funded by the State and extensive analytical work on GBV conducted Peacebuilding Trust Fund (SPF), supports with WB support in the Great Lakes Region. survivors of GBV, addresses prevention It is a multi-sectoral intervention which of occurrence, public awareness raising, focuses on implementation of GBV prevention and capacity building of client countries interventions, provision of multi-sectoral in the DRC, Nepal, Papua New Guinea, response services for survivors; and provision and Georgia. In DRC, SPF funding provided of health services (including mental health). services to 4,000 GBV survivors, while 114 Approved for $107 million, the project expects Village and Savings Loan Associations have to reach over 641,000 people, including female been created to help restore livelihoods. In and male survivors of GBV and vulnerable Nepal, a funding scale up of an ICT pilot women and girls. The project supports and funded by the Umbrella Facility for Gender complements the ongoing efforts of the Equality (UFGE) was used to promote beneficiary governments and their partners awareness about GBV through social media, operating in these countries and helps promote and is in the process of creating a 24 hour/7- regional and national knowledge sharing day helpline, that brings together all support bringing together stakeholders from across the services providers helping GBV survivors. countries under a community of practice. The projects under the platform have been The Multi-Sectoral Crisis Recovery Project groundbreaking in advancing the Bank’s work for North Eastern Nigeria, comprising a on engaging men and boys into violence comprehensive gender component, was prevention programs to foster behavioral approved for $200M in March 2017. The change. This is line with the fourth pillar of the conflict in Nigeria has disproportionately Bank’s 2015 Gender strategy on increasing the affected women and girls as targets of violence, voice and agency of women and engaging including GBV which has exacerbated due men and boys, with the successful violence to the conflict; abduction by armed groups; prevention model SASA! being applied to forced displacement; and increased burdens an increasing amount of project preparations as the breadwinners of the household while across the Bank. men and young men have either engaged in the conflict or migrated to the cities. The project is increasing utility delivery and access 82 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations to public services for women and seeks to both mitigate and prevent GBV. It also promotes the engagement of women in peace building and conflict resolution. Country operations In Lebanon, the Health Resilience Project, funded by the Global Concessional Financing Facility is working closely with the Ministry of Health to offer and strengthen healthcare services to poor Lebanese and displaced Syrian refugees, 70 percent of whom are women and children. A new scale up of the system will benefit up to 340,000 Lebanese and 375,000 Syrians. Healthcare services will include an integrated response service to victims of GBV and attention to the mental health of refugees, two key issues of concern for forcibly displaced populations in this area. In Papua New Guinea, the IFC-sponsored Business Coalition for Women (BCFW) helped a group of companies develop and implement GBV policies for employees and reduce the financial costs of the occurrence of GBV in the workplace. In Papua New Guinea, GBV is widespread, with 94 percent of employers saying their staff has likely experienced GBV. The impacts on the workplace increases liabilities, creates occupational safety and health risks, and reduces productivity by affecting victims’ performance and attendance. It also contributes to turnover and hinders career progression. For the private sector, the direct costs of GBV adds 3 to 9 percent to total payroll expenses and indirect costs another 45 percent. Through the BCFW, companies were able to reduce cases of GBV and associated costs while also retaining jobs and prosecute perpetrators. Section 3 83 WORKING WITH MEN AND MASCULINITIES AN INCREASED ANALYSIS OF GENDER DISPARITIES AND GENDER-BASED As seen in the section on GBV, the Bank is VULNERABILITIES IN SITUATIONS OF engaging men and boys in successful violence FORCED DISPLACEMENT prevention programs. WBG operations also include programs aimed at addressing the The Bank is building up knowledge on impact that conflict and fragility has on men the gender disparities and gender-based and boys who have been either forcibly or vulnerabilities facing refugees and host voluntarily recruited into fighting, responding communities, and implementing projects to the psychosocial and developmental effects addressing the effects of forced displacement on them and their families as they reintegrate on households, vulnerabilities and challenges into society. faced by women and girls, but also the opportunities for women’s empowerment The Reinsertion and Reintegration Project in that can arise. the Democratic Republic of Congo supports the socio-economic reintegration of more than Selected operations helping refugees 4,000 demobilized ex-combatants. Designed and host communities to support ex-combatants in various stages The Development Response to Displacement over time, the project offers livelihood and Impacts Project (DRDIP) in the Horn of career advice, training in skills such as business, Africa, covering Ethiopia, Uganda, Kenya, finance, and other vocational training, referral and Djibouti, supports host communities services and psychosocial support. The project to manage the development impact of the also assists spouses and other household influx of refugees. The project seeks to build members with reinsertion sensitization, training the resilience of refugee hosting communities and psychosocial counseling, acknowledging by improving their access to basic social that families often lack the resources, capacity services, expanding economic opportunities, and skills to reestablish their lives in the and enhancing environmental management. aftermath of conflict, let alone accommodate DRDIP is a government-led and implemented the special needs of returning ex-combatants. development response complementary to traditional humanitarian agencies with The Learning on Gender and Conflict in Community-Driven Development (CDD) as Africa Program (LOGiCA), a multi-donor the operational approach, embedding an initiative chaired by the World Bank, funded inclusive and conflict sensitive participatory and implemented various studies and projects process to identify needs, improve self- to generate knowledge and operational good reliance among refugee-hosting communities, practice on effective approaches to incorporate and contribute to social cohesion in these gender concerns into demobilization and communities. Key to the project is ensuring reintegration programs, to respond to GBV, that all voices are heard and included in and to address masculinity, power and violence decision-making, placing a special focus on in post-conflict settings. Studies included the women, female-headed households, and research project The Impact of War on youth, who are among the most vulnerable Somali Men undertaken by the Rift Valley in refugee and host communities. At least 50 Institute and projects in post-conflict Liberia percent of host population beneficiaries and to reduce violence and poverty among the total refugee population are women. Their urban street youth. needs and perspectives are central to project implementation along with measures to reduce, 84 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations BUILDING THE EVIDENCE BASE ON GENDER AND FORCED DISPLACEMENT A research project led by the FCV and Gender Groups, conducted in partnership with UN High Commissioner for Refugees (UNHCR). This project builds on the flagship report, Forcibly Displaced, launched by the FCV Group last year, and the 2015 WB-UNHCR study The Welfare of Syrian Refugees: Evidence from Jordan and Lebanon, which provides a poverty profile of Syrian refugees living in Jordan and an analysis of the main predictors of welfare and poverty. This new work will apply a gender lens to existing data on refugees and IDPs with the aim of demonstrating how existing data sources can be used to identify gender specific vulnerabilities among those in target groups. The work will inform programs and operations for forcibly displaced populations (refugees, asylum seekers and internally displaced people) in MENA countries and programs supported by the new IDA18 window. A Rapid Evidence Review (RER) of the impact of interventions targeting forcibly displaced populations on gender equality and gender-based vulnerability is being undertaken with the International Red Cross. To inform new WBG’s investment in working with forcibly displaced women, men and children, this RER seeks to evaluate the effectiveness of humanitarian interventions with forcibly displaced populations, to extract key lessons from them relevant for development programming and identify where more work is needed to understand impacts. prevent and mitigate the risk of GBV through and prosperity. In fragile and conflict affected operational tools and guidance and culturally settings, women play a key role as agents of appropriate sensitization of communities, change and leaders within their environments traditional and religious leaders, project staff to not only build resilience but also prevent and local government staff to gender related further violence and conflict. risks and solutions. An impact evaluation is proposed for the Ethiopia operation to look at WeMENA is a business model challenge gender outcomes in the areas of education and for women entrepreneurs in the MENA health based on project interventions. region working on innovative and financially sustainable private sector solutions to address challenges in urban INVESTING IN THE ECONOMIC resilience. The project seeks to create EMPOWERMENT OF WOMEN FOR pathways for employment for women through PEACE AND STABILITY entrepreneurship, promote economic inclusion of women and resilience thinking The WBG recognizes that equality of in entrepreneurial ecosystems, and support economic opportunity between women mission driven business to create jobs and and men drives productivity, profitability, receive investments. Financed by the Global and performance, which has a direct Facility for Disaster Reduction and Recovery positive impact on families, communities, and (GFDRR), the WeMENA project supports economies to achieve sustainable growth innovative business models that enhance their Section 3 85 communities’ ability to survive, adapt and grow in the face of stresses and shocks, by investing in challenges ranging from food security to healthcare and civic engagement. By investing in female entrepreneurs, the Bank is supporting not only individual businesses, but entire families, local and national communities, as well as economies and societies at large. The Great Lakes Trade Facilitation Project (GLTFP) is a World Bank regional operation that aims to facilitate cross-border trade by increasing the capacity for commerce and reducing the costs faced by traders, especially small-scale and women, at selected border and port locations in the Great Lakes Region of Africa. Women represent up to 80 percent of beneficiaries in some cases, the reason for which the project implements measures that are specifically intended to ease challenges faced by female traders in target locations, including infrastructure such as solar-panel lighting along the DRC-Rwanda border to allow for greater security and extended trading hours, and measures to improve health and environmental conditions. 86 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations IMPROVING AND INCREASING WOMEN AND GIRLS’ ACCESS TO HUMAN ENDOWMENTS Improving human endowments, education, health care and social protection, is a key pillar of the WBG Gender Strategy (FY16-23) and a particular challenge in fragile and conflict affected states. In June 2017, the World Bank and the International Center for Research on Women released a report entitled “Economic Impacts of Child Marriage: Global Synthesis Report.” As part of a 3-year research and capacity building project on child marriage funded by the Bill and Melinda Gates Foundation, the Children’s Investment Fund Foundation, and the Global Partnership for Education, this study demonstrates the negative impacts of child marriage, a practice in many fragile and conflict affected states and of increasing concern in situations of forced displacement, and its associated economic costs. Every year, 15 million girls marry before the age of 18 years old. The impact of child marriage can be devastating for children in terms of education lost and the opportunities at making a living, as well as health risks related to giving birth at a young age. Looking at five domains of impacts, (i) fertility and population growth; (ii) health, nutrition, and violence; (iii) educational attainment and learning; (iv) labor force participation and earnings; and (v) participation, decision- making, and investments, the study establishes that the economic costs associated with the impacts of child marriage are also very high, suggesting that investing in ending child marriage is not only the right thing to do, but also makes sense economically. REMOVING THE BARRIERS TO WOMEN’S adoption of a new Family Code in 2016 that ACCESS TO ASSETS AND SERVICES now allows women in DRC to start businesses, open bank accounts, register a company and Conflict and insecurity can increase or perform a host of other economic activities. perpetuate the barriers that women and girls in The new law also raised the legal marriage age FCS face in accessing assets such as property for girls from 15 to 18. In the first year after and land, and public and private sector services the adoption of the Family Code, the project including finance and legal aid. helped increase demand for the services of the IFC client “Rawbank” by 15% increase in A cross-sectoral team from the IFC; Women, applications from women entrepreneurs. The Business and the Law (WBL – a WBG pilot has further informed the preparation of a project); and the Finance & Markets GP, $100m IDA operation to support SMEs in the came together under the project “Advancing DRC (FY18 deliverable) and is a good example economic opportunities for women-led of how the WB and IFC delivers integrated SMEs in the Democratic Republic of Congo”. services in fragile situations, addressing the Supported by the DRC’s ministries of Gender barriers that restrain women’s access to assets and Justice, the team led reform efforts to and services. change the DRC’s Family law, leading to the Section 3 87 CLIMATE CHANGE AND FRAGILITY Climate variability and change, especially extreme floods and recurrent droughts, will significantly affect the world’s fragile and least developed countries. Such countries are usually most reliant on climate-dependent sectors of the economy, such as rain-fed agriculture, and their histories of poverty and weak governance undermine resilience and capacities to respond to climate risks. Moreover, climate impacts could undermine any development achievements gained so far. To address and reduce the risk that climate change and variability may pose to a fragile state’s population, policy-makers and development stakeholders should integrate climate resilience planning and when possible, consider opportunities for low Carbon emission activities to ensure short and long term resilient development. The World Bank Group Action Plan calls for the consideration of climate risks in all its projects and initiatives. In addition, The World Bank Group is committed to achieve a target of 29% of climate related activities within its lending portfolio by 2020. This target includes both adaptation and mitigation actions and the assessment of additional co-benefits. 88 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations WHAT ARE CLIMATE CHANGE CO-BENEFITS? Development activities provide climate change co-benefits when they contribute to climate change adaptation (increased resilience) and/or mitigation (reducing greenhouse gas emissions), even when that is not their main objective. WHAT ARE ADAPTATION CO-BENEFITS? An activity provides adaptation co-benefits if it reduces the vulnerability of human or natural systems to the impacts of climate change by maintaining or increasing adaptive capacity and resilience. Examples include: Mangrove Ecosystem-based Introduction of restoration climate resilient climate-adaptive for coastal fisheries rice varieties settlements Upgrade roads to Climate change climate-resilient and disaster risk standards microfinance and micro-insurance WHAT ARE MITIGATION CO-BENEFITS? An activity provides mitigation co-benefits if it: reduces greenhouse gas emissions OR enhances their removal from the atmosphere (reference to a no-project situation). MDBs agreed on a positive list of activities that are eligible for climate mitigation co-benefits. Select activities require demonstration of net GHG emission reductions, notably: Reducing Reduce energy Flood protection energy use intensity of existing through carbon in irrigation water supply systems sequestration (mangrove plantations) Reducing emissions from Agricultural management deforestation and forest activities that improve/ degradation do not deplete existing carbon pools Section 3 89 TABLE 2 Fiscal Year Total WB Total WB % Climate % Adaptation % Mitigation Commitment Climate Over Total WB Co-benefits Co-benefits ($m) Co-benefits ($m) Commitment FY13 2,602 144 6% 0% 6% FY14 2,960 679 23% 7% 16% FY15 2,786 419 15% 14% 1% FY16 3,375 454 13% 0% 13% FY17 6,595 1,103 17% 7% 10% FY18* 5,335 1,036 19% 7% 13% Data downloaded August 31, 2017. FY18 consists of projects approved as of August 31, 2017, and pipeline projects (A, B, C, * FY probability) that have been assessed for climate Co-Benefits. Thus far, 53% of the FCS projects in the pipeline have been assessed. In FY18, preliminary climate Co-Benefits estimates amount to 19% of the total IDA/IBRD commitments in FCS. This number is subject to change as to date only 53% of the FCS projects of the FY18 pipeline have been assessed. FRAGILE & CONFLICT-AFFECTED STATES’ HOW IS THE WBG ASSESSING CLIMATE CO-BENEFITS CO-BENEFITS IN FRAGILE STATES? Analysis at corporate level Analysis by Global Practice In the FY13-17 period, the climate co- The Global Practices of: Energy; Transport; benefits amount and ratio in FCS increased Water, Macro Economics and Fiscal significantly from $144 million (6%) in FY13 Management; Social, Urban, Rural and to $1,103 million (17%) in FY17 (Table 2). Resilience are the largest contributors of The climate co-benefits ratio has fluctuated climate co-benefits in FY13-17. A handful of over the years, ranging from 6 to 23%. projects with large financing amounts have driven the volume of climate co-benefits. For instance, in FY15, the Lebanon Water Supply Augmentation Project accounted for 45% of FCS’s climate co-benefits. Similarly, in FY16, the Iraq Emergency Fiscal Stabilization, Energy Sustainability, & SOEs DPF had $360 million in climate co-benefits, which accounted for 79% of the FCS climate co-benefits. 90 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations FIGURE 16: FY13-17 CLIMATE CO-BENEFITS BY GLOBAL PRACTICES IN FCS TABLE 3: WBG CLIMATE CO-BENEFITS IN FCS BY REGION (FY13-17) Region AFR EAP ECA LCR MNA SAR WB Climate 785 498 209 180 1078 50 Co-benefits in FCS ($M) WB Climate 11% 17% 56% 31% 19% 13% Co-benefits in FCS (% of total commitment) MOBILIZING PRIVATE SECTOR Analysis by Region INVESTMENT IN CLIMATE As shown in Table 3, from the regional MITIGATION IN FCS perspective, around two-thirds of the FCS As it does across its climate portfolio, IFC’s climate co-benefits between FY13 and 17 come approach in FCS is to unlock private capital, from the Middle East & North Africa, and Africa as exemplified in Côte d’Ivoire to achieve its regions, which are the two largest contributors ambitious renewable energy target in line in terms climate co-benefits amount ($1078 with its nationally determined contributions million, $785 million). The Europe & Central (NDC) of the Paris Agreement on climate Asia, and Latin America & Caribbean regions change. The country aims to meet 42% of its have the highest climate co-benefits ratio energy needs with renewables by 2030, and (56%, 31%). IFC is working with energy companies, the financial sector, utilities, and governments in a structured process to unlock private investment in biomass, solar, and hydro energy. Section 3 91 Mainstreaming Climate Resilience in Twenty-eight countries and two regions (the Vulnerable Countries Caribbean and the Pacific) are participating in and have been benefiting from the PPCR Pilot Program For Climate Resilience (PPCR) program—Bangladesh, Bolivia, Bhutan, The Pilot Program for Climate Resilience Cambodia, Dominica, Ethiopia, The Gambia, (PPCR) is one of the largest adaptation and Grenada, Haiti, Honduras, Jamaica, Kyrgyz resilience funds ($ 1.2 billion), operating Republic, Madagascar, Malawi, Mozambique, under the Climate Investment Funds (CIF). Nepal, Niger, Papua New Guinea, The PPCR supports highly vulnerable countries Philippines, Rwanda, Samoa, St. Lucia, St. to pilot ways to integrate climate risk and Vincent and the Grenadines, Tajikistan, Tonga, resilience into the countries’ core development Uganda, Yemen and Zambia. Fourteen out of planning through a 2-prong approach: a) these 28 countries are LDCs. Ten of the PPCR technical assistance to prepare Strategic countries have fallen within the FCV group Programs for Climate Resilience (SPCRs); and b) at one time or the other (see figure below). scaled up investments to implement the SPCR Among these countries, Haiti and Yemen are pipeline of resilience projects. By design, the the two countries that have been “fragile” PPCR program focuses on the most vulnerable states since 2009, when these countries groups (women, children, elderly, indigenous entered the PPCR program. Other fragile groups, poor, etc.). The PPCR programs are countries that are currently participating in the supported by all multilateral development PPCR program are: Mozambique, Gambia banks (WB, IFC, ADB, AfDB, IDB and EBRD), and Papua New Guinea. while the World Bank has the largest portfolio (about $ 0.5 billion in PPCR grants and loans). FIGURE 17: YEARS OF PARTICIPATION 92 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations FIGURE 18: FY13-17 CLIMATE CO-BENEFITS BY FCS Section 3 93 MAINSTREAMING CLIMATE RESILIENCE IN PILOT COUNTRIES: PILOT PROGRAM FOR CLIMATE RESILIENCE (PPCR) The Pilot Program for Climate Resilience (PPCR) is one of the largest adaptation and resilience funds ($1.2 billion), operating under the Climate Investment Funds (CIF). PPCR supports highly vulnerable countries to pilot ways to integrate climate risk and resilience into the countries’ core development planning through a 2-pronged approach: a) technical assistance to prepare Strategic Programs for Climate Resilience (SPCRs); and b) scaled up investments to implement the SPCR pipeline of resilience projects. This includes private sector investment; for example, PPCR is co-investing alongside IFC in an SME risk capital fund in Nepal, to promote growing businesses that can support climate resilience. By design, the PPCR program focuses on the most vulnerable groups (women, children, elderly, indigenous groups, poor, etc.). Twenty-eight countries and two regions (the Caribbean and the Pacific) are participating in the PPCR program. Fourteen out of the 28 PPCR countries are LDCs. Ten PPCR countries have fallen within the FCV group at one time or the other. Among these countries, Haiti and Yemen are the two countries that have been “fragile” states since 2009, when these countries entered the PPCR program. Haiti’s SPCR (2013) was developed with a recognition of the fragility of the country due to nascent democracy after dictatorship, military, and populist governments and with the expectation that the pro-environment policies should be able to transcend the political divide as well as individual and private interests. While the PPCR program in Haiti is expected to contribute to the development of a set of laws contributing to climate resilience, along with Ministers, political parties, the private sector, civil society organizations and society, the adaptation and resilience is now entirely mainstreamed in the Haiti portfolio. As part of the Haiti PPCR program, the World Bank is currently implementing three projects ($20 million in total), out of which the following two projects have components that addresses institutional issues with the aim to build long term capacity: a) Strengthening Hydro-meteorological Services Project and b) Municipal Development and Urban Resilience Project. 94 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations CLIMATE CHANGE, MIGRATION, SECURING RESILIENCE – FIRST RESULTS The forthcoming flagship report “Groundswell – Preparing the Way for Internal Climate Migration”32 provides scenario-based projections of possible internal climate migration over the period 2020 - 2050 for Sub-Saharan Africa, South Asia, and Latin America to serve as a baseline for climate-resilient development planning. The purpose is to understand the potential scale, magnitude and trends in spatial shifts in population distribution over the next few decades for a select set of regions (Africa, South Asia and Latin America). The modeling is novel in that it is the first attempt to provide spatially and temporally explicit national-level projections of population distribution under a range of plausible climatic, demographic, and socio-economic scenarios for all developing countries. While there are different forms of mobility, this report focuses on climate induced internal movement because of the higher probability and substantial impact related to climate change. Numerous studies have found that the most frequent form of movement will be internal; but when people cross borders, they will mostly move to close neighbors, often from one low-income country to another (Foresight 2011; R. A. McLeman, Schade, and Faist 2016). The focus is on slow onset climate change effects to illustrate longer-term deviations from the normal, including ecosystems and livelihoods viability as well as permanent mobility and settlement outcomes. The report focuses on impacts on water availability, agriculture, and sea level rise. Short-term climate variability or extremes will thus not be investigated – except where successive shocks accumulate over multiple years – but the focus is rather on deviations from baseline conditions over decadal time scales. This approach is generally supported by the literature, which shows that rapid onset climate hazards generally result in short-term displacement, whereas slow onset hazards that unfold over multiple years may test household coping capacities and result in longer-term mobility as a household livelihood strategy, or possibly distress migration. Overall, the report finds that patterns of human mobility will be increasingly induced by slow onset climate impacts by 2050. Climate impacts on human movements are spatially and temporally differentiated, depending on a country’s development context and location-specific interactions between ecosystems and livelihoods. While the impacts of climate change on mobility are naturally locally differentiated, they seem strongest in rural areas and for those with climate-sensitive livelihoods. For example, because of Mexico’s high rates of urbanization and services oriented economy, the influence of climate factors is lower than for Ethiopia and Bangladesh. Future climate impacts and related movements of people will play out at different time scales driven by the climate signal. While some of this mobility, as induced by climate, tends to be due to the scale of population growth, the largely distress driven nature of this mobility means that it must be managed proactively. This distress mobility compounded with the understanding that the strength of the climate signal will increase in a much more detrimental and non-linear way beyond 2050 makes the years ahead essential for adequate preparation to tackle spatial mobility. Climate migration will be a reality, but it does not have to be a crisis. The report presents key takeaway messages and proposes some key areas of action. The report was being finalized, and the plan was to launch it in January 2018. 2018 World Bank (forthcoming)- Groundswell – Preparing the Way for Internal Climate Change 32  Section 3 95 96 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations HIGHLIGHT: THE GLOBAL FACILITY FOR DISASTER REDUCTION AND RECOVERY (GFDRR) The Global Facility for Disaster Reduction and Recovery (GFDRR) supports fragile and conflict-affected countries with weak governance systems to prepare for and respond to disasters. Since its inception, GFDRR has had engagements in 27 fragile and conflict- affected countries, with over $50 million in grant commitments. The nature of GFDRR’s existing and potential engagements has been evolving over the past few years. This includes vulnerable and marginalized communities in fragile countries to build resilience to disasters; generating and collecting data on damage, loss and needs in countries facing ongoing conflict and areas that have been difficult to access by international partners; and supporting the World Bank’s engagements within the agenda. In FY17, GFDRR engaged with fragile and conflict-affected clients by: a) supporting analytical activities such as the Recovery and Peacebuilding Assessments; b) continuing to develop methodologies that can be applied in FCV situations; and c) ensuring that GFDRR staff that work in FCV situations are sensitized to issues of conflict and fragility. In FY17, examples of how this guidance was implemented include: A Rapid Damage Assessment methodology was developed with the technical support • of the World Bank Group’s Disaster-Resilience Analytics and Solutions team and GFDRR financing. It was used to quickly assess the damages from Hurricane Matthew in Haiti in October 2016 and the Tropical Cyclone Enawo that hit Madagascar in March 2017. • In Somalia, findings from the GFDRR-supported post-disaster assessment on the impacts of the 2016/17 drought in Somalia were influential in the design of the $50 million Somalia Emergency Drought Response and Recovery Project, particularly in informing which affected areas the project should focus on and on the choice of partners to implement the project based on comparative advantages, informed by the assessment’s gap analysis. PDNA and DRF training was provided in April 2017 to enhance Sudan’s capacity to • assess and recover from natural disasters. A leadership and training specialist was brought into the Resilient Recovery team • at GFDRR who will work to enhance FCV awareness as well as contribute to the development of the World Bank Group’s Global Crisis Management Platform. Section 3 97 WORKING IN CONFLICT: THIRD PARTY MONITORING AND ICT As the World Bank expands its operations investments. TPM agents were contracted in countries affected by FCV, its mission to for both the fiduciary and procurement deliver development will be threatened by functions under the recurrent cost window, high levels of insecurity. This challenge is as well as for seven projects in the water, especially relevant for the delivery of IDA18. energy, agriculture, and education Given severe constraints such as dangerous sectors, as well as the National Solidarity conditions in the field and limited data, Program. TPM duties included monitoring creative approaches to supervising projects the execution of program activities (i.e. will be paramount for the success of World building: schools, irrigation systems, Bank interventions. roads and bridges). Two TPM agents were contracted for a cost of $22 million and The World Bank cannot let insecurity $3.1 million respectively, against ARTF- dictate where it operates and whom it can financed projects totaling $3.8 billion; assist. Third Party Monitoring (TPM) – defined as monitoring by parties that are external • Cameroon – The Bank is financing a to the project’s direct beneficiary chain or transport project executed by the Army management structure to assess progress on Corps of Engineers in the Far North, where outputs, outcomes, and impacts – is therefore Boko Haram has killed at least 1,300 likely to become a common feature of civilians and 120 soldiers, and abducted an interventions, as IDA18 begins to work estimated 1,000 people since 2014. The more – and differently – in FCV. TPM contract is focused on supervising the implementation of the project on Depending on each context and project, behalf of the Bank in two domains: (a) TPM usually monitors operational aspects monitoring of social and environmental such as: beneficiary satisfaction related to risks and community engagement; and project implementation; beneficiary targeting, (b) monitoring road works execution and especially in health, education, community quality. The TPM contract is worth driven development (CDD), and social $1.3 million for a total project cost of protection projects; the quality of service $409 million; provision; the effectiveness of grievance redress mechanisms (GRM); safeguards  outh Sudan – Since the resumption of •S implementation, including resettlement conflict in 2013, World Bank staff have action plans; and the integrity of financial had little access outside Juba. Since the management systems and procurement second evacuation in two years in July practices. Some of the most recent 2016, the Bank has begun re-engagement examples include: and is preparing the delivery of IDA18. The TPM contract to be implemented by the • Afghanistan – The Afghanistan International Organization for Migration Reconstruction Trust Fund (ARTF) features (IOM) is financed from the State and separate windows for recurrent costs Peacebuilding Fund (SPF), and is worth (for paying civil service salaries) and $2 million against a country portfolio of $260 million. 98 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations Three factors influence the quantity and cost of TPM: • Insecurity – the level of danger increases the cost of TPM and the lack of access for Bank staff increases the need to resort to this supervision instrument. According to World Bank Corporate Security, missions to such FCV settings can be either restricted or suspended due to high or substantial risks. In restricted cases (e.g. Afghanistan, Nigeria, Cameroon, Iraq, Philippines, Ukraine), mission approval is contingent upon the availability of Country Office resources (e.g., security teams, accommodation, vehicles) and the prevailing security conditions. Common limitations include caps on the number of mission staff and Country Office approval of travel to higher-threat field locations. Suspended missions (e.g. Yemen, Syria) are not being approved by the Head of Office and the Country Office may also be closed. Portfolio size – the greater the amount of • resources devoted to FCV settings where staff cannot go, the more likely TPM will be employed and the higher the cost. • Technology – revolutions in ICT (e.g. using tablets instead of actual questionnaires) will drive down the cost of TPM. Section 3 99 SPOTLIGHT: TPM ARRANGEMENTS AND THEIR RISKS A simple TPM arrangement typically involves three actors: The World Bank (development project financing); the government’s implementing agencies (project execution); and the TPM provider which is hired by the Bank to supervise the project in insecure areas. In reality, this scenario can be more complex – as shown in figure below. The World Bank provides financing for development projects to the government, which through various agencies implements Projects 1 and 2. Since this is a conflict-affected location, the Bank has also been providing financing to an international NGO to execute Project 3. But due to high insecurity, the TPM agent hired by the Bank can only monitor Project 3 effectively. When the Bank hires the same TPM agent for Projects 1 and 2, the agent then sub-contracts to local NGOs. Under this scenario, there are thus three grant agreements, two recipients, one TPM provider, and three sub-contractors. FIGURE 19: MAPPING THE ACTORS 100 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations This schematic illustration highlights some of the risks and opportunities inherent in the use of TPM in fragile settings. On the one hand, third party monitors can ensure that the World Bank keeps “eyes on the ground” and can supervise projects even in the most insecure areas. The additional layer of information provided through TPM can also complement monitoring and evaluation systems by cross-validating data. The avoidance and prevention of fraud and corruption is another potential benefit. On the other hand, TPM systems can involve complex institutional arrangements that are prone to reputational risks and conflicts of interest. Assessing the real capacities of TPM providers can be a challenge for the World Bank, as well as determining the robustness of TPM agents’ security arrangements. Lastly, there is a tremendous variation in costs, which range from $1-20 million, depending on country context and technology employed. To help navigate some of these challenges, the FCV Group has launched a Bank-wide exercise to gather data, share lessons learned, and systematize the knowledge on TPM in order to better serve operations. As the World Bank Group supports IDA18 Review, the WBG team drew on geospatial implementation, emphasizing a risk-based data to assess urbanization trends. Therefore, approach, the FCV Group is systematically the FCV Group will support the systematic scaling up the use of information and harnessing of these tools, to close some crucial communications technology (ICT) to information gaps in FCV and crisis contexts and strengthen operational effectiveness. to improve operational effectiveness even in Many large-scale crises as well as violent areas that cannot be accessed by Bank staff. conflicts do not only result in vast destruction, More broadly, as the Bank pivots toward a displacement, and devastation, but also more risk-based approach to FCV, ICT tools often allow only very limited access on the can support activities along the risk chain, from ground, for security-related and logistical preparedness and prevention, to recovery reasons. The lack of physical access and and reconstruction. insights into specific dynamics and needs on the ground effectively inhibits operational The most immediate priority will be engagement, precisely in some of the areas supporting engagement in situations where development interventions are needed experiencing active conflict, where physical most urgently. ICT and geospatial analytics access is difficult, but where efforts are can help facilitate early warning and proactive ongoing to reach those furthest behind and, risk management, effective programming and ultimately, to strengthen resilience. The targeting, remote project supervision, TPM, aim of FCV’s ICT initiative is to build capacity M&E, and citizen engagement in areas with among clients and enable GPs to effectively limited access. Geospatial data is especially and sustainably leverage these tools based on critical to analysis and prioritization in data their specific operational requirements. The poor fragile environments, where it can be strategic focus stands in contrast to providing used as a proxy for population, infrastructure one-off support or costly service contracts with and contextual data. In the Haiti Urbanization external firms. Section 3 101 Development activities will be supported donors. To this end, the FCV Group will provide across sectors, including infrastructure, direct technical assistance and leverage agriculture, service delivery, social and support from internal and external partners. human development. The ICT tool that is most fit-for-purpose may vary depending on In partnership with the World Bank’s sector and conditions on the ground, with the Geospatial Operations Support Team main criteria being that it can be leveraged (GOST) and Information Technology Services efficiently and sustainably. For example, while (ITS) department, FCV will offer capacity- geo-enabling can be applied to most types of building in geo-enabling for near real-time operations, remote sensing-based support will supervision of operational engagement, primarily target the agriculture sector, which M&E, and tracking of dynamics on the is particularly amenable to geospatial tools ground. “Geo-enabling” relates to the and satellite-based analysis. Agriculture is also systematic use of ICT tools for the collection recognized under IDA18 as central to economic and analysis of granular spatial (geo-tagged) transformation, jobs, resilience, and gender, data in the field, in order to contribute to while over 80 percent of the damage and effective programming, prioritization, remote losses caused by conflict and droughts supervision, and M&E of interventions. Once is to agriculture, especially livestock and established, a geo-enabled M&E system allows crop production. for quick, easy, and semi-automated remote verification of project implementation and The central value proposition is that, while in-field activities through digital platforms like technology cannot fully compensate for web maps as well as common desktop data inadequate Bank access, these tools can analysis applications like Excel. Information that significantly enhance project design and can be automatically uploaded in near real- supervision by: (a) facilitating more targeted time and remotely analyzed includes survey and timely programming; (b) empowering responses, citizen feedback, project result implementing agencies to more efficiently indicators and any qualitative and quantitative and effectively track project progress while data as well as photographs collected in strengthening their institutional capacity; the field. The system is easily replicable and (c) encouraging and tracking beneficiary scalable to cover additional interventions, and engagement and feedback; (d) helping the is thus ideal for coordinating engagement Bank execute its due diligence functions, across country or sector portfolios and with including verifying and accounting for results; external partners. This system has recently and (e) enhancing reliability, accountability, been successfully implemented with a large- and costs of third-party monitoring, including scale CDD project in Azerbaijan. TPM used by government agencies and other 102 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations CASE STUDY – ICT FOR OPERATIONS – GEO-ENABLING THE AZERBAIJAN RURAL INVESTMENT PROJECT The Azerbaijan Rural Investment Project (AzRIP) is a Community-Driven Development (CDD) project that has been implemented since 2005 at about 2,000 individual sites in rural areas across the country. In early July 2017, the M&E system of AzRIP was geo-enabled by establishing a systematic approach for collecting location data, project indicators, and photos from the field. The aim of the exercise has been to enhance the effectiveness of the M&E system and allow for real-time tracking and visualization of the project’s scope and impact through an interactive mapping application. The system has enabled the client’s Project Management Unit (PMU) to finalize the collection of comprehensive M&E data from all 1,996 individual project sites, including GPS tags and embedded pictures from the field, within two weeks. The M&E data has since been integrated into an interactive web map that is used as a communications tool for engaging with the government and population of Azerbaijan. The interactive citizen engagement map was officially launched by Azerbaijan’s Minister of Finance during the World Bank Annual Meetings in October 2017. Moreover, the capacity-building exercise has strengthened the government M&E systems overall. The participants acquired the necessary skills to act as multipliers regarding the learned material and themselves delivering training for in-field enumerators, partners and third-party monitors. In this regard, the established system will serve for monitoring all implementation activities of the ongoing project and enhancing project supervision of subsequent operations in Azerbaijan. FIGURE 20: EXCERPT FROM THE INTERACTIVE AZRIP M&E MAPPING APPLICATION Section 3 103 SUMMARY OF THE GEO-ENABLING METHODOLOGY Systematic use of common ICT tools (smartphones, tablets) to remotely monitor • interventions in near real-time, verify in-field conditions, and directly feed structured field data into a project M&E platform. Data recorded automatically includes the precise date, time, location, GPS accuracy, and • photographic evidence of in-field activities, as well as qualitative and quantitative project and survey data. The method allows for quick, easy, and semi-automated remote verification of activities in • areas inaccessible for Bank staff to enhance the accountability of PIU and TPM activities (“monitor the monitors” approach). The technology is designed for application in remote contexts with limited capacity • and weak digital infrastructure and has been successfully used in country contexts like Afghanistan and South Sudan. The field data collection works fully offline and neither internet nor phone network • access are required. The system is easily replicable and scalable to cover entire country portfolios within • and across sectors. Collected geographic bottom-up data can be integrated with top-down data from remote • sensing, big data sources, and spatial information provided by partners to contextualize project interventions. Technically, the method requires the setup of smartphones, digital accounts for • questionnaire creation and back-office analysis, as well as capacity-building training delivered to client PIUs and project teams. The geo-enabling technology is cost-free and Task Team members to build capacity and can be applied within short time frames. in terms of questionnaire creation, field data Technically, the geo-enabling methodology collection, geospatial data verification, and requires (i) the set-up of project-specific or back-office analysis. Despite being highly portfolio-wide accounts with an ICT-based impactful, the technology is designed for data collection and M&E platform, such as application in developing countries with limited the cost-free Open Data Kit (ODK); (ii) the capacity and weak digital infrastructure and has configuration of smartphones or tablets for been successfully used in country contexts like field data collection; and (iii) dedicated training Afghanistan, the CAR and South Sudan. provided to Project Implementation Units (PIUs) 104 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations All necessary steps for the geo-enabling coordination with development partners and methodology, including a hands-on training to identify potential geographic overlaps with workshop offered by the FCV Group, can ongoing and proposed programs by partners. typically be carried out within the time This can help to make sure that World Bank frame of one week, and can cover several projects complement existing aid provision in projects at the same time. the most efficient way. Geospatial analytics can inform geographic Geo-enabling can help enhance the targeting for proportionality and impact accountability and transparency of third maximization of interventions. Geospatial party monitoring activities and systematize analytics can support systematic and criteria- the analysis of collected field data in based targeting of implementation areas, integrated M&E systems. Third-Party based on specific needs and risk factors. For Monitors are typically used for auditing and instance, correlating geographic data layers tracking project implementation in areas on food insecurity, refugee and IDP camps, that are inaccessible for Bank staff and client or disaster hotspots with socio-economic representatives. Consequently, a part of a indicators or service infrastructure can inform project’s results framework is outsourced to gap analyses and help determine priority an agency that is external to the project’s areas in terms of specific needs for individual management structure and is thus subject to interventions. Relevant contextual information the quality standards and reliability of that that can feed into geospatial analysis for agency. The use of ‘geo-enabled’ ICT tools and operational effectiveness includes, among procedures in the context of TPM allows for others: (i) epi-centers of specific crises; (ii) remote monitoring of the progress and output large-scale destruction; (iii) concentration of of data collection and verification activities, in displaced populations; (iv) sub-national socio- near real-time and through a highly-structured economic indicators; (v) areas with limited process that can be embedded in a project’s access to basic services or markets; (vi) security- M&E system. Data that can be recorded related information, such as conflict hotspots automatically and analyzed in a systematic and road security; (vii) aggregated survey data; way through the geo-enabling methodology and (viii) information on environmental issues, includes the precise date, time, location, GPS etc. A Geographic Information System (GIS), accuracy, and photographic evidence of TPM can be used to integrate and correlate geo- activities, as well as all collected qualitative referenced data that has been collected on and quantitative data related to the project the ground or accessed through open source itself. This “monitor-the-monitors” approach channels and partners. Additional data can be can be implemented through straightforward derived through remote sensing. Multispectral processes and the use of simple-enough satellite imagery can, for instance, be used ICT tools, such as common smart phones. for sophisticated analysis of agriculture and Whilst the used of these tools is no panacea environmental conditions or to establish for overcoming some of the inherent caveats baseline data on infrastructure, such as roads, when resorting to third party support, they can hospitals and schools, where not covered provide valuable insights into TPM activities on by ‘traditional data.’ Moreover, a systematic the ground to increase their accountability, and recording and monitoring of the geographic thus significantly facilitate Bank engagement in footprint of projects can serve to facilitate the areas that do not allow for direct access. Section 3 105 DEMOCRATIC REPUBLIC OF CONGO – CALLING FOR CASH: USING CELL PHONE TECHNOLOGY TO ACCESS PAYMENTS In 2004 the Democratic Republic of Congo (DRC) started an ambitious demobilization and reintegration program that included a one-time payment of $110 and monthly payments of $25 to ex-combatants. Making these monthly payments proved difficult because in many areas there was no banking system, no transport infrastructure, no strong fiduciary control, and no insurable system for transferring funds. Accordingly, most of the traditional methods for delivering payments were not possible. A solution to the payment problem was found in Celpay. The communications company created a system whereby customers could securely access their bank accounts using a cellular phone and a secret pin number. The technology provided a way to allow remote populations to access their money and track and verify payments in real time. The DRC government, working with Celpay and Celtel, used this technology to pay transitional allowances to ex-combatants. Operations began in February 2006. The transitional allowance was deposited into the beneficiary’s bank account. Using their unique pin number, beneficiaries would access their funds by visiting a Celtel phone card vendor, calling a phone number linked to their bank, and requesting a specific amount of money. Originally, vendors paid beneficiaries using the money vendors collected through selling phone cards (also known as “top-up” cards). It soon became clear, however, that vendors did not have enough cash on hand to supply beneficiaries with their allowances. Therefore, cash points were set-up. These cash points functioned like an ATM, but were manned by an individual with a cell phone that the beneficiaries used to access their bank accounts. The teller would then give them the requested funds. The continued conflict in the eastern part of the country either hindered or cut off cell phone service making it difficult to implement this program in that region. Nevertheless, it was largely successful, with over 100,000 ex-combatants collecting $50 million.33 Source of this text box: Ernst and Young (2007), correspondence with the DRC Country Office (2007). 33  106 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations ICT MONITORING IN BANGLADESH An “ICT monitoring” tool was developed to increase transparency and accountability in the construction process of cyclone shelters in Bangladesh under the Multipurpose Disaster Shelter Project and the Emergency Cyclone Recovery and Restoration Project for the local government engineering department. The two projects have constructed, or are in the process of constructing, hundreds of cyclone shelters in remote areas of the Bangladesh Coastal Zone. The application that was developed is based on Java and sends photos/ progress reports to Dhaka daily from construction sites, thus allowing the WB to have better oversight of construction works. Engineers in Dhaka are able to double check construction standards and ensure regular, detailed inspections in the field. Engineers in Dhaka can also quickly communicate with the monitoring teams should there be any queries or issues. The app has been extremely successful to this point, and the development team has now been asked to link financial progress to the physical progress of construction works. Payments will be linked to the bill of quantity directly through forms developed for the app. Section 3 107 RESPONDING TO FORCED DISPLACEMENT: REFUGEES AND IDPS Forced displacement is a development advantage to address such challenges. For issue. At the end of 2016, about 65.6 million this reason, the WBG is mobilizing a significant people were forcibly displaced globally. More amount of resources to respond to forced than 95 percent of the displaced population displacement crises. For low-income countries, live in developing countries. As global poverty the IDA18 replenishment created a new $2 becomes increasingly concentrated in specific billion sub-window financing projects for groups of vulnerable people, supporting the refugees and host communities. The purpose forcibly displaced and their hosts is critical of the sub-window is to help refugee-hosting to achieve the Sustainable Development countries better manage the socio-economic Goals (SDGs) and the WBG’s own Twin Goals. dimension of refugee situations. It aims to The forced displacement crisis thus calls provide resources on attractive terms to host for a collective action by the international countries for medium-to long-term investments community backed by coordination and that will benefit both refugees and host complementarity of various interventions communities. It also aims to help advance a within a broader framework. “progressive” policy agenda through policy dialogue with host governments. A complementary development approach is crucial in addressing medium- and The WBG has been actively engaged in long-term challenges. The issue of forced policy dialogue with host governments displacement has historically been considered to operationalize development responses as a humanitarian issue. Emergency responses to refugee crises. The WBG has initiated and the rights-based agenda of humanitarian dialogue with the governments of refugee- actors have been significant in bringing short- hosting counties through joint missions term assistance to the forcibly displaced. with UNHCR. The missions yielded Forced While humanitarian assistance remains critical, Displacement Strategy Notes, a comprehensive forced displacement is often a protracted document series outlining refugee situations, situation and short-term assistance is not government responses, and priority areas and sufficient in addressing medium- and long- the WBG’s possible activities to address the term socioeconomic challenges. There is challenges. In addition, governments have a growing recognition that a development devised their own action plans to respond to approach is crucial in bridging such a gap and refugee situations in their countries. is complementary to conventional humanitarian assistance. There is a significant window of opportunity for a change of policy in many refugee- The WBG has embarked on a development hosting countries. A host of international approach to the forced displacement crisis. conversations over the last few years, which The Development Committee paper submitted culminated in the September 20, 2016 New in April 2016 outlined the urgent need for York Declaration for Refugees and Migrants, the WBG and the international community to highlighted governments’ commitments to shift focus on the development aspects of forced toward “progressive” refugee policies. The displacement and to leverage its comparative WBG’s efforts and resources can provide what 108 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations UNDERSTANDING THE POTENTIAL FOR PRIVATE SECTOR SOLUTIONS: KAKUMA CAMP (KENYA) IFC’s FCS Africa program spearheaded a study, “The Consumer and Market Survey of Kakuma Camp,” produced with support from the FCV Group and UNHCR. The initiative intends to provide a better understanding of the context and identify entry points for the private sector to deliver necessary goods and services to the refugee and host communities. Looking at the Kakuma camp as a “market”, the study collected data on consumption levels, consumer patterns and preferences, access to finance, telecoms, employment, and business ownership. It showed that while the Kakuma market is, by population, significant, it has low levels of education, access to credit, and mobile penetration. Yet the area provides a diverse number of income and business prospects for both local and refugee populations, supporting household expenditures of KES 5.8 billion ($56.2 million) per year. The study also shows that interventions will not fully benefit refugees unless they are granted freedom of movement, the right to work, and the right to own property. Following the study, internal consultations have helped identify potential interventions to improve power provision, access to capital for businesses, and education opportunities in Kakuma camp and town—laying the foundation for private sector initiatives that can harness and strengthen the existing market in Kakuma, and benefit refugee and host communities. is needed to follow up on these and Jordanians (see below), along with an commitments and to ensure that the host IFC investment in a Jordanian vocational and governments’ intensions are translated into technical skills training provider. In Lebanon, actual policy measures that can make a IFC recently signed an agreement with the difference on the ground. country’s largest microfinance institution to design a Very Small Enterprise (VSE) Loan The WBG is also promoting private sector program and a Very Small Equity Product, responses to the refugee crises, recognizing to cater to the needs of refugees and host the private sector’s potential to support communities. In Africa, IFC has completed a economic inclusion of displaced persons study of potential private sector solutions to and simultaneously strengthen host the refugee presence in Kenya (below), as the communities’ resilience. In Jordan, WBG first step to engaging the Kenyan private sector efforts have included a project to develop to benefit the refugee and host communities. the enabling environment for Syrian refugees Section 3 109 DEVELOPMENT RESPONSE TO DISPLACEMENT IMPACTS PROJECT (DRDIP) - IN THE HORN OF AFRICA The development objective of the Development Response to Displacement Impacts Project for Africa is to improve access to basic social services, expand economic opportunities, and enhance environmental management for communities hosting refugees in the targeted areas of Djibouti, Ethiopia, and Uganda. This project has five components: Social and Economic Services and Infrastructure aims to improve access to basic 1.  social services and economic infrastructure and improve the service-delivery capacity of local authorities at the target subnational and local levels by financing community and strategic investments as well as capacity-support initiatives. It has two subcomponents: (i) Community Investment Fund; and (ii) Capacity support for local planning and decentralized service delivery. Sustainable Environmental Management aims to ensure that environmental and 2.  natural resources are carefully and sustainably managed so they can support current and future needs and livelihoods. It has two subcomponents: (i) Integrated natural resources management; and (ii) Access to energy. Livelihoods Program seeks to improve livelihoods and increase the incomes of 3.  refugee-hosting communities based on a market-system approach. It has two subcomponents: (i) Support to traditional and nontraditional livelihoods; and (ii) Capacity support of community-based organizations for livelihoods. Project Management, and Monitoring and Evaluation (M&E) follows a decentralized 4.  approach, using existing government structures at the national, subnational, and local levels and community institutions to be established and/or strengthened. Regional support for coordination, capacity and knowledge aims to support 5.  the establishment of the Regional Secretariat on Forced Displacement and Mixed Migration, primarily for the Horn of Africa (HoA), but with relevant linkages to the Great Lakes Initiative. 110 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations MALI – USING INNOVATIVE METHODOLOGIES TO TRACK DISPLACED PEOPLE Tracking people on the move is difficult and costly. The security crisis in north Mali created a need to track people while they were on the move to answer urgent questions about their living conditions. By using mobile phone interviews, the Listening to Displaced People Survey collected such information over an extended period, even when respondents moved between locations. Its approach is relevant for many other situations. The instruments, data and metadata of the Listening to Displaced People Survey are publicly available. RESPONDING TO FORCED DISPLACEMENTS OF SYRIANS AND YEMENIS As part of its work to respond to the Syrian conflict and refugee crisis, the Bank is supporting provision of essential services. In many countries, health systems have been overburdened by the influx of refugees. In Jordan, the Bank has financed the provision of drugs and vaccines to both Syrian refugees and Jordanians who have been crowded out of public hospitals and has a new $50 million Jordan Emergency Health project to reimburse the Government of Jordan for the provision of health services to poor Jordanians and Syrian refugees and provide technical assistance and capacity building to improve the efficiency of the health system in the long term. This is part of a larger $150 million health project which is co-financed with the Islamic Development Bank and is through the Global Concessional Financing Facility. In Lebanon, the Bank’s support to the health system through the recently approved $120 million Lebanon Health Resilience Project aims to provide a wide range of services to 340,000 poor Lebanese and 375,000 Syrian refugees. In January 2017, the Bank’s Board approved a $200 million grant to UNICEF and WHO under the Yemen Emergency Health and Nutrition Project (EHNP), which aims to provide basic health and essential nutrition services to seven million people. The Bank is also working with partners in Libya to develop an operation that addresses the health needs of migrant refugees and IDPs in the West, East, and Southern regions of the country. The proposed design will explore the options for providing services in public health facilities and detention centers. Section 3 111 BENDING THE PATHWAYS TO PEACE: OPERATIONALIZING THE PREVENTION AGENDA The priority areas for prevention—better Different actions are needed—in situations monitoring of grievances, ensuring that of emerging risk, high risk and open contestation is productive by making it more violence, and in post-violence contexts. This, inclusive in key sectors, aligning different in turn, requires actors across development, institutions to work in concert, and working security, political and humanitarian sectors to from the community-level up—should be work more closely together across all levels calibrated to address the type and the level of risk to capitalize on their comparative of risk within a society. Sustained prevention advantages so that, even if the immediate requires actions to mitigate shocks or triggers circumstances demand a relative balance that that can strongly influence actors’ calculations emphasizes quick action to prevent escalation and behavior in the short term, while making of violent conflict, the structural factors sustained investments to address deeper underlying that conflict are being addressed structural and institutional risks over the too. In the recommended model all actors have longer term. a role at all times, while acknowledging that FIGURE 21: YEARS OF PARTICIPATION Source: Pathways for Peace, Inclusive Approaches to Preventing Violent Conflict. 112 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations different actors can be more or less prominent These insights lead the way for action along at different times.34 For example, development three initiatives, and the World Bank Group actors are increasingly playing a larger role is taking action in each one of them. Across throughout cycles of escalating risk, conflict, the institution, the FCV Group is at the center and recovery, and should continue to do so; of the enhanced focus on prevention and while this shift is an important part of sustaining preparedness to better manage heightened prevention, however, the relative advantages global challenges and escalating risks through and constraints of development actors means the following: that earlier action at the first signs of emerging risk opens space for using development more First, development policies need to 1.  explicitly in prevention. address grievances around social and economic exclusion, which can create The Pathways report sets out an ambitious fertile ground for mobilization to violence. agenda for improving the ability of the Institutions also need to improve efforts to World Bank Group to effectively manage reinforce inclusion. Participation of women FCV risks before they lead to violence. It and youth in decision-making – argues that making investments in pre-FCV as well as long-term policies to address situations to address horizontal inequalities and the economic, social and political exclusion enables national actors to ensure that aspirations of young women and men – grievances are managed through productive are fundamental to sustaining peace contestation. And it demonstrates that doing at all levels. so creates enormous cost savings for both national and international actors that can be The FCV Group, in partnership with GSURR, invested in people and institutions to create is deploying innovative approaches that more resilient societies. Finally, the Pathways can serve as the basis for ensuring that report shows that, just as traditional methods development interventions in high-risk of prevention—focused on mediation and situations respond to exclusion-related security—require the perspective, expertise, grievances. Survey tools with specific and resources of development actors to meet perception components attached to them have the increasingly complex conflicts of today, so proven valuable in informing prioritization of too do development actors like the WBG rely national development strategies that cut across on security, diplomatic, and humanitarian actors security, peace and development dimensions. to achieve the twin goals of reducing poverty Such tools have been used successfully to and boosting shared prosperity. inform policy dialogue in the Central African The prominence of the role of any actor, relative to others, is indicated by the thickness of the lines that run along the x-axis. 34  Section 3 113 Republic, for example, where the use of this approach offers for violence prevention; perception data was instrumental in the design there, the Recovery and Peacebuilding and finalization of the 2016 National Plan for Assessment (RPBA) methodology has been Recovery and Peacebuilding, which focused used successfully to help the government on the three interlinked priority pillars of (i) respond to subnational pressures and prevent supporting peace, security, and reconciliation an escalation and spillover of the security and (ii) renewing the social contract, and (iii) displacement crisis created by Boko Haram. promoting economic recovery. Third, global issues play a significant 3.  Significant progress has been made role in today’s conflicts, creating in applying new information and stress and triggering violence in communication technologies to collect tense environments. Climate change, perception data in hard-to-reach or demographic transition and migration, inaccessible locations; such data illuminate illicit trafficking, and advances in changing patterns of behavior that can inform communications technology need to be the risk of violent conflict. Working closely considered in prevention efforts at the with operational task teams, the FCV Group country and global levels. is helping to strengthen monitoring efforts to harness these technologies to access remote Innovations like the Global Crisis and conflict-affected areas, where exclusion is Management Platform (GCMP), in likely to be the worst. collaboration with the United Nations’ Peacebuilding Fund, enable the multilateral 2.  Second, governments hold the primary system to strengthen synergies on risk responsibility for prevention, but civil mitigation and crisis management to provide society, the private sector, international solutions across the spectrum of interrelated and regional organizations – among risks and vulnerabilities facing the countries others – need to be included. The study today. Platforms like the GCMP can provide an emphasizes that successful prevention is opportunity to leverage the existing prevention built on coalitions of various actors. The mechanisms of international partners as private sector is already playing a key role well as more collective risk prioritization and in post-conflict reconstruction, and it has management as the basis for the coordination the potential to play an equally important to address global systemic challenges for role in prevention, which development prevention. Such collaboration can bring partners can support. strategic decision-making, joint analysis and planning together with the financial means for Innovations to the joint WB-UN-EU- implementation, and provide the platform for World Bank Recovery and Peacebuilding driving strategic discussions with governments Assessment is one way that the FCV Group on country- and region-specific risks and is developing multi-stakeholder platforms opportunities. that provide an inclusive process to support dialogue and participation of a broad Prevention also entails taking the long range of stakeholders to identify, prioritize view, engaging early to address risks when and sequence recovery and peacebuilding development policies and programs can activities. The goal is not a technical output achieve the best results. And when crises but a joint narrative and framework for needs do happen, this approach calls for staying and prioritized interventions. Currently used engaged to help prevent societies from mostly during and immediately following falling into violence. During conflict, it is conflict, these kinds of approaches should be key to help to prevent escalation and protect brought upstream and developed into joint essential institutions that will be needed to platforms for prioritizing risk. The example build the peace. Long after the violence of Cameroon shows the value added that ends, development efforts are needed to avoid a relapse. 114 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations SOMALIA AND SOUTH SUDAN – MONITORING PRICE DATA A High Frequency Survey was used to better understand fragility by tracking product and exchange rate prices disseminated in a public dashboard. This provides an early warning system for economic shocks. It helps to understand the volatility in purchasing power of households and relates conflict and economic shocks through prices on households. THE SAFER MUNICIPALITIES PROJECT IN HONDURAS The project is improving the capacity of national and local authorities in their efforts at violence prevention, and addressing the risks associated with crime and violence in selected municipalities. The project has been successful in implementing an innovative methodology for preventing violence, through the construction of safe routes, installation of lighting, and the improvement of educational centers, sport facilities and public spaces, benefitting more than 30,000 people. By targeting certain groups such as women and youth, community leaders and fathers, the project has improved social cohesion and reduced both risk for and actual levels of violence with intervention in areas including substance abuse, unemployment, interpersonal violence, male identity and pervasive social norms, using the successful violence prevention model SASA!. CENTRAL AFRICAN REPUBLIC - AGRICULTURE REHABILITATION AND RECOVERY PROJECT This $25 million IDA project is currently under preparation with a Board date planned for July 2018. The project aims at transforming subsistence farming into commercial smallholder agriculture and promoting agribusiness to create jobs for youth. The project intends to reduce cross-border conflicts caused by a crisis of pasture land in Chad, Sudan and Cameroon and reduce conflicts between herders and farmers. The project will also include the rehabilitation of rural roads and related infrastructure (such as storage facilities). This will be critical to the reconstruction of the agricultural sector. This pathway could contribute to break the cycle of violence. Section 3 115 116 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations COLOMBIA – THE PEACE LENS CONTRIBUTION TO THE CONSTRUCTION OF PEACE The Peace Lens approach involves a set of topics for discussion and analysis to be included in the dialogue between country management and task teams, mainly at the project inception and concept stages. Topics are based on a list of principles of good engagement in an environment of a transition towards peace, considering the Colombian context (i.e., upper middle-income country not completely reliant on ODA, isolated regions suffering from violence, social and economic exclusion, high levels of inequality, presence of illegal armed groups and economies, etc.), and the commitments associated with the negotiations between the Government and the FARC-EP. The topics developed as part of the Peace Lens are designed to help task teams address the complexities of the transition to peace and its relation to Bank operations, by identifying location-specific conflict drivers, key stakeholders, risks, mitigation measures, and opportunities to increase a project´s impact on peace-building. The Peace Lens allows a better understanding of local, regional and national dynamics and peacebuilding perspectives from the past and present: Using the Peace Lens, task teams can better identify the risks to operations coming • directly from the political and social conditions of both the area where the project will take place, and the national context. This allows them to implement mitigation measures and to achieve better results; The application of the Peace lens reduces the risk of feeding violent cycles, • avoiding empowering specific actors who are part of political, armed or social power disputes; and It also increases the impacts of the project by making it more adaptable and • resilient to changing political and security conditions, encouraging the reduction of inequality among regions and population groups, increasing accountability and participation, and allowing economic development to benefit more people. Section 3 117 ENGAGING WITH NON-TRADITIONAL STAKEHOLDERS Addressing the increasing complexity of The relationship between the WBG and UN violent conflict requires coherence and humanitarian agencies is therefore stronger complementarity of actions across the than ever. The objective is to implement humanitarian, development, peacebuilding the framework at all levels, especially at the and security divide that encompasses operational level. In addition to International political, security, human rights, economic Financial Institution (IFI)/UN partners, and social dimensions. These dimensions other stakeholders – including civil society speak to the complementarity between the UN organizations (CSOs), faith-based organizations, and the World Bank Group (WBG) mandates. foundations, and private sector partners – are Over the last decade, the relationship integral to the crisis management ecosystem. between the UN and WBG in fragile situations In a joint statement during the 2017 Spring shifted from competition to cooperation and Meetings, the UN Secretary General and the coherence both at headquarters and country WBG President reiterated the stance of a levels. The partnership has been enabled by group of 50 leaders who represented a variety special instruments such as the UN-WB Fragility of development partners, including NGOs, and Conflict Partnership Trust Fund. Moreover, signaling the need for greater urgency in there is the experience of working jointly on the international community’s approach to complex issues such as forced displacement famines and fragility. More effort is required to and recent famine response. The need for fully understand ways in which the WBG can stronger collaboration was emphasized in collaborate systematically and effectively with the 2017 UN-WB Partnership Framework INGOs and other humanitarian actors. The for Crisis-Affected Situations signed by the Bank envisages a broader engagement with Secretary General and World Bank President such groups in order to carry out more effective on 22 April, which also responds to the call by conflict prevention and response. member states for closer UN-WB collaboration across the humanitarian-development-peace To ensure greater coherence and (HDP) nexus. At country level, the WB-ICRC effectiveness in its engagement on the (International Committee of the Red Cross) FCV agenda, the World Bank Group is collaboration on Somalia famine response, exploring how engagement with INGOs and WB-UNICEF/WHO partnership in Yemen can be made more systematic in crisis and to deliver basic services exemplify the growing conflict settings. Issues relating to the specific engagement with partners to deliver results in conditions in which engagement with INGOs FCV contexts. is merited, along with the possibilities of using 118 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations WB-ICRC COLLABORATION In 2017, Somalia was one of the four countries that were threatened by famine (together with South Sudan, Nigeria and Yemen). Even though large-scale famine was eventually prevented, many people remained in need of assistance and the risk of severe food-insecurity persisted in many areas. Given the arrears outstanding on its international debt, including to the World Bank, the Federal Government of Somalia was in non-accrual status and not eligible for International Development Association (IDA) financing. However, the WBG Board recognized the pressing humanitarian needs and agreed to take action to save lives and restore the livelihoods of communities threatened by famine. It was therefore decided to support the International Committee of the Red Cross (ICRC) with a grant of $20 million coming from the IDA Crisis Response Window. This is the first time the Bank is providing direct financing to the ICRC, whose neutral, impartial and independent approach to humanitarian work allows it to serve communities in some of the most remote and difficult areas of the country to reach. The Bank’s support to the ICRC resulted in distribution of food rations to tens of thousands of families, rehabilitation of water infrastructures and access to drought-related health services for nearly 40,000 people. pre-defined selection criteria and scope of clients, IFC also engages with other non- collaboration, need to be addressed. Other governmental stakeholders in FCS to facilitate aspects of working with INGOs—including greater private sector activity. This engagement legal and fiduciary issues, safeguards, and takes various forms: for example, the Public- risk mitigation measures – also require a Private dialogue program, led by the joint IFC- comprehensive practical approach. This line WB Trade & Competitiveness Global Practice of work will be informed by taking stock of (T&C GP), has worked in many FCV-affected past and current World Bank engagement with contexts to facilitate private sector participation INGOs, and by drawing upon experience from in dialogue on policy reform and development other donors. agendas; and IFC invests in some INGOs that seek to promote economic opportunities in Engaging private sector actors in FCS is an FCS through financing models, such as essential component of Maximizing Finance FINCA International, a network of for Development. Beyond its private sector microfinance institutions. Section 3 119 DEMOCRATIC REPUBLIC OF CONGO - PROVIDING BANKING SERVICES TO LOW-INCOME CUSTOMERS IFC, in partnership with the microfinance institution FINCA International, developed a network of Digital Financial Service agents to provide banking services to low-income customers. Bringing formal banking services to those without access to financial services particularly benefits women, who are more likely than men to be excluded from access. During the network’s roll-out, it was discovered that working with women agents helped FINCA to connect with more people without access to formal banking services. Furthermore, factors such as the location of women’s businesses and how women handle finances had an impact on the growth of the company. IFC and FINCA joined forces under the Partnership for Financial Inclusion, a $37.4 million joint initiative of IFC and The MasterCard Foundation, to expand microfinance and advance digital banking services in Sub-Saharan Africa. In a country where only 8 percent of registered firms are owned by women, FINCA has been successful in recruiting female business owners as agents and has recruited women into 27 percent of agent positions in Kinshasa. 120 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations Section 3 121 LEVERAGING KNOWLEDGE AND PARTNERSHIPS FOR IMPACT In a context marked by a global urgency MDBs on forced displacement; and working to end violent conflict, the prospective with local and international NGOs and non- near doubling of IDA18 resources for FCV governmental organizations, especially in presents both unique opportunities and areas with limited government capacity and challenges for the Bank. The need for ‘know insecure environments. The FCV Group is also how’ to do things differently in fragile states, working closely with the International Network and WBG thought leadership on FCV, are on Conflict and Fragility (INCAF), G7+, and essential. Knowledge and analytics are the core bilaterally through strategic consultations, DNA of the institution and a key comparative sharing of data, assessments, and identification advantage of the Bank. To ensure it remains of areas of further collaboration to increase the a key player in this agenda, meeting the impact, relevance and effectiveness of WBG’s demands for sophisticated and timely products, operation in FCV situations. reaching top level government decision makers, disseminated adequately, the Bank Second, the Knowledge Strategy put in will also need to deepen its partnerships and place by the FCV Group aims to enhance collaborations globally. the development effectiveness of Bank operations in environments affected by The Bank has accumulated a wealth of fragility, conflict and violence, and to information on what works and what does establish the WBG as a leading knowledge not work in FCV. As described in the Strategy source, a strong advocate, and an influencer Update to the Board in May 2016, the WBG on FCV issues globally. The FCV Group’s is ramping up its efforts to ensure effective knowledge vision is to foster an environment engagement on FCV issues. Building on the that encourages the creation, sharing and WBG’s convening power, global technical and effective application of knowledge to improve analytical expertise and financing instruments, WBG engagements in FCV; (ii) to develop the main objectives of the FCV group are mechanisms for creating, sharing and using to improve the effectiveness of the WBG’s knowledge. The FCV Group’s learning vision response in countries affected by FCV, through is to foster an empowered team of staff with transformational knowledge and partnerships. access to reference materials and capacity to analyze the specific FCV context to formulate First, the WBG is deepening partnerships and support the implementation of fit-for- in FCV by partnering with bilateral and purpose solutions. multilateral agencies on both a global and a country level. This includes the new Specifically, the Bank has developed a humanitarian-development partnership with training program that aims to provide operational UN agencies such as UNHCR, staff with access to reference materials WFP and UNICEF, and joint analytics at both and capacity to analyze the specific FCV global and country level (UN-WB flagship context to formulate and support the study on prevention of conflicts, UN-WB-EU implementation of fit-for-purpose solutions. Recovery and Peacebuilding Assessments, It will focus in priority on WBG Staff (including etc.); and at regional level working with the in HQ and in-country, Regions, GPs) but EU, developing a joint work program with may also include staff from external partner 122 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations agencies (e.g. UN, bilateral donors, INGOs) As for the overall WBG’s knowledge and on an ad hoc basis. The priority is to support learning strategy, FCV’s K&L approach will be IDA18 implementation and scaling up; but also, supported by: (i) implementing a standardized to ensure WBG operational effectiveness in way of getting knowledge to flow; (ii) creating FCV contexts in MICs and other situations. clarity around roles and responsibilities for knowledge management at all levels of staff The revamped FCV knowledge and (including senior management); (iii) building learning strategy will combine live events, a new incentive structure around knowledge- e-learning, face-to-face courses, clinics and sharing; and, (iv) putting in place a rationalized, other knowledge exchange opportunities simplified, suite of tools that underpins our around three pillars: (i) the global intellectual knowledge management for operations. Key leadership and influence of the FCV Group; (ii) enablers to the implementation of the strategy the capture and dissemination of past and new will include external knowledge partnerships, knowledge for effective WBG engagement in the launch of communities and networks for FCV; (iii) enhancing staff capacity. knowledge generation and sharing (e.g., Communities of Practice), modernized IT The proposed learning program is meant to Platforms; and, the leveraging of other provide staff with key policy, operational WBG Knowledge & Learning Offerings and strategic guidance in areas critical to across the WBG. working in the unique circumstances of fragility, conflict and violence; and, to build Finally, a key objective of the FCV knowledge the necessary staff skills to respond to strategy is to foster an environment that such challenges. The program will integrate: encourages the creation, sharing and effective (a) online information on the FCV portal application of knowledge to improve World with research materials, toolkits, and best Bank Group engagements in FCV. The practices, as well as about the different kinds upcoming FCV Operations Portal will be a key of support from the FCV group to teams; (b) an component of this commitment to help staff introductory online e-learning covering basic deliver more effectively. This portal will provide foundational fragility, conflict and violence the latest policy, guidance and approaches for concepts; (c) a face-to-face and peer-driven staff working in FCV environments. core course on strategy, programming and implementation; and (d) a series of clinics involving in-depth training on subject matters covered in the core course and thematic deep- dives in collaboration with GPs/VPUs. Activities at the core of this pillar will include: FCV Core Curriculum (e.g., FCV 101 eLearning covering basic foundational FCV concepts, approaches, and tools and TTL Training Core Course) and Clinics and in-depth technical training (e.g., Responding to Forced Displacement, Recovery & Peace Building Assessment, Risk & Resilience Assessments). Section 3 123 124 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations 4.1 EQUITABLE GROWTH, FINANCE AND INSTITUTIONS35 Section 4 Operationalizing the WBG approach in FCS: Global Practices in Action FINANCE & MARKETS financial infrastructure and integrity, while also working on improving financial access for GLOBAL PRACTICE SMEs and individuals, including those in the agricultural sector. A. STRATEGIC APPROACH While most F&M interventions span all three stages of the conflict continuum (pre-, in-, The Finance & Markets Global Practice (F&M post-conflict), there is an increased focus GP) supports the WBG’s achievement of the on prevention through mitigation and twin goals by contributing to stable, deep, assessment. Financial losses from natural and diversified, efficient, and inclusive financial man-made disasters continue to rise, with systems. The Global Practice works in FCV the greatest impact on developing countries environments in all regions and across all three and their low-income populations. With FCV of its global solution teams through supporting countries often among the most exposed to a initiatives to strengthen financial stability and high risk of adverse environmental and natural integrity, access and inclusion, long-term disasters, there is a significant need to invest finance and risk management. It provides the in early prevention measures to build resilience full range of financial, analytical, advisory, and and address underlying crisis risk factors convening services. The main focus remains on and stresses. developing critical foundations in the form of strengthened supervisory capacity, FIGURE 22: LENDING PIPELINE Note that three GPs in EFI – F&M, MFM and T&C - were merged into two GPs - Macroeconomics, Trade and Investment (MTI) 35  and Finance, Competitiveness and Innovation (FCI) - effective January 1, 2018. Section 4 125 F&M provides financing and technical legal and regulatory frameworks, and related assistance to help mainstream disaster infrastructure to establish credit infrastructure and climate risk management policies into to improve credit bureaus, movable collateral country-level strategies, centered around registries (MCR) and modern insolvency the concept of risk layering. These strategies regimes. F&M GP recently helped Liberia rely on an optimal combination of domestic establish a modern MCR regime, facilitating disaster contingency (to cover recurrent, more than $230 million of financing. moderate disasters),36 contingent credit lines such as Catastrophe Deferred Draw-Down F&M supports access to finance in Options (CAT DDOs) and similar instruments innovative ways. Three FCV countries – from other development partners (to cover Myanmar, DRC, and Côte d’Ivoire are on the less frequent, more severe disasters), and priority list for the universal access to finance catastrophe risk transfers such as insurance initiative – where national financial inclusion or cat bonds (to cover infrequent but severe strategies set the approach for reaching this disasters). Countries can also join forces to goal.37 Developing a regulatory basis for develop regional solutions as was the case with digital financial services/mobile money as the Pacific islands having established a regional the driver of financial access is an often-used catastrophe risk pool, following the example of assistance strategy, which could then also be the Caribbean islands in 2007. leveraged and used effectively during post- crisis humanitarian relief responses. Equally Financial Sector Assessment Program (FSAP) relevant, financial inclusion is critical to reduce assessments, introduced in the wake of the isolation and increase opportunities at the Asian financial crisis of the late 1990s are the household level. Financial inclusion is a tool for only regularly updated diagnostic vehicle empowerment and citizen’s participation, as that provides an independent assessment of demonstrated in Haiti. the stability, vulnerability and development of a country’s financial sector with a view to Illicit financial flows (IFF) are one of the main strengthen the monitoring of financial systems. transnational drivers of vulnerability of state institutions and instability as they perpetuate National Payments System (NPS) underpins poverty and erode resources of developing the efficiency of the payment flows in any countries that could be used to fund economy. Developing or restoring the NPS essential services for people, such as health will strengthen the effectiveness of crisis and education. Sustainable Development response by facilitating relief efforts through Goal (SDG) 16 sets a target to “significantly cash transfers to help affected people recover reduce illicit financial and arms flows ...” F&M from the impact of a crisis. Recent examples of interventions support countries to improve World Bank interventions in this space include financial integrity and governance systems to the response to the earthquake in Haiti and ensure compliance with international standards; the payment of hazard incentives to Ebola to strengthen anti-money laundering (AML) response workers. and combating the financing of terrorism (CFT), asset disclosure and other corruption Promoting SME access to finance is a critical prevention systems and tools; and to assess component of facilitating private sector national AML/CFT risks. growth. To improve access to credit for SMEs, F&M teams also support countries in building Sovereign Climate and Disaster Risk Pooling: World Bank Technical Contribution to the G20. World Bank Group, 2017. 36  http://documents.banquemondiale.org/curated/fr/837001502870999632/pdf/118676-WP-v2-PUBLIC.pdf See http://www.worldbank.org/en/topic/financialinclusion/brief/achieving-universal-financial-access-by-2020 37  126 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations Financial instruments are also effective in a projects in 27 FCV countries (out of total of 35). post-conflict period. Depending on market The current pipeline is consistent with conditions prior to and in the aftermath of the overall GP’s strategic approach and a crisis, Financial Intermediary Loans (FILs) types of offerings. and/or partial credit guarantees (PCGs) can be powerful instruments to help mitigate banks’ financing shortfalls. PCGs can also help C. INNOVATING FOR IMPACT rehabilitate the productive sector, as many Working with the private sector firms will have lost collateral or have difficulty accessing financial resources for reconstruction. In the West Bank and Gaza, the F&M GP is Ultimately, either a FIL or PCG can serve to piloting innovative financial interventions to support economic growth through enabling incentivize private sector investment and job eligible financial institutions to issue new loans creation, through the launch of a Development or restructure existing loans without damaging Impact Bond (DIB). The DIB focuses on their asset base, since credit risk could be enhancing the skills of the Palestinian workforce shared with the partial credit guarantor. Bosnia in a more market-driven way to foster improved and Herzegovina was one country where this job outcomes. This is arguably one of the most instrument was recently offered to mitigate the advanced use of impact bonds to engage the impact of natural disaster. private sector in an FCV environment today. In addition to $1.5 million for DIB outcome payments, the State and Peacebuilding Fund B. PORTFOLIO & PIPELINE also supports the impact evaluation of this The F&M portfolio in FCV has been financing innovation with an additional relatively stable over the last several years. $0.5 million grant. At the end of last FY, the practice had 75 active FIGURE 23 Section 4 127 128 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations GOVERNANCE GLOBAL PRACTICE A. STRATEGIC APPROACH media. Promoting civic mobilization depends on such factors as support to organically Governance issues are at the heart of the formed associations and clear selection criteria challenges confronted by many countries emphasizing the internal governance of CSOs affected by fragility, conflict and violence to involve them in the design, implementation (FCV). Building resilient and accountable and oversight of projects. State-citizen inclusive institutions capable of resolving conflict in non- interfaces are promoted by such measures as violent ways and delivering public goods are supporting national and local level spaces for critical to transforming dynamics and placing engagement and dialogue that bring state countries on pathways towards durable and non-traditional stakeholders (including peace and development. the private sector) together to discuss core development priorities. In FCV, accountability mechanisms are challenging since information in general, The Governance Global Practice (GGP) plays or neutral information in particular, may be a crucial role in this regard, through its lacking, civic mobilization is impeded by the own portfolio but also its collaboration and absence of a social contract, and inclusive participation in other sector-led operations. interfaces are difficult to establish. Open The complexity and volatility of FCV calls government reforms such as deliberative for different approaches. The GGP portfolio transparency, citizen engagement, and freedom has evolved from a lending-centric model of information laws that facilitate inclusive towards a problem-solving and evidence-based decision-making processes, strengthen approach that seeks to improve results by accountability, and build citizen stakeholders’ identifying sustainable improvements in the capacity to engage in development dialogue public-sector results chain. This is even more are nonetheless crucial to rebuild trust, and relevant for FCV. GGP is engaged across the in many different contexts, such reforms board, with particular focus on: have been supported. Transparency, civic mobilization and inclusive interfaces must be  nderstanding and engaging on •U supported in parallel. Promoting the free flow the drivers of fragility. The World of information depends on such factors as an Development Report 2017: Governance enabling environment (rules and legislation and the Law highlights the role of related to improving transparency, access governance including the role of sanction to information and open data), reducing and deterrence, power-sharing, wealth information asymmetries by supporting redistribution, and dispute resolution, to disclosure of key data (including budget data prevent or mitigate violent conflict. The which can also be analyzed along specific ongoing operationalization of the WDR fault lines such as regional breakdown of opens up stronger entry points for such expenditures), supporting independent support, building on the GGP’s solid track- accountability institutions (ombudsmen) and a record in problem-driven political economy free environment for the traditional and new analysis and its experience in supporting the justice sector, among others. Section 4 129 Building core institutions. The GGP is • deliver services itself, it needs to set innovating its approaches in post-conflict and enforce standards, be accountable countries. Recurrent cost financing and to citizens, and create an environment PFM operations (CAR, Somalia) aim conducive to the private sector. Regulatory at re-establishing core public sector predictability, transparency and consistency management functions – including are key when private sector stakeholders domestic revenue mobilization - at a critical consider investments. The GGP is time. Where political cohesion is weak, developing guidance material and a toolkit selective and asymmetric reform strategies, for “Governance of Regulators” in FCV. although not a panacea, can reduce The aim is to support crowding in of private resistance, seeking to build “islands of sector investment in FCVs through a more effectiveness” (Afghanistan). In the security transparent and predictable regulatory sector, in close partnership with the UN, environment, thus enabling the GGP is answering governments’ requests “Cascade” effect. to examine the effectiveness, efficiency, and sustainability of public spending in Providing fiduciary assurance while • the security sector in various situations strengthening country systems. An of fragility: high rates of crime and urban increased focus on the balance between violence (El Salvador, Mexico), fragile “capacity fixes” and “institutional transitions with a large peacekeeping sustainability” will promote the avoidance presence (Liberia and Somalia), external of harmful practices that arise from threats and crises (Mali, Niger). parallel delivery structures in FCV settings. Developing basic country fiduciary Delivering public services and • systems for the medium term is paramount supporting private sector development. (Liberia). The use of third party fiduciary Two recent examples illustrate innovative monitoring (South Sudan, Somalia) is approaches. Operationally, GGP is both a necessity and a strategic choice assessing the potential of Program- to support more accountable and open for-Results (P4R) funding in providing government systems. The Bank is exploring institutional development support to the prospect of adopting “SMART” address service delivery bottlenecks fiduciary solutions which allow for real time and incentivize concrete service delivery oversight, transparency and accountability outcomes in fragile contexts (Sahel on the use of funds and which would region). Analytically, a recent report, Social complement the traditional Ex-Post Delivery in Violent contexts,38 studies techniques. Smart Fiduciary would facilitate how bargains (collusion, rent-sharing) community engagement and feedback between insurgents, service providers loops with users of the services provided. and local elites influence service delivery and offers insights on how different forms A special theme of Governance and of violence are more or less amenable to Institutions for IDA18 allows the WBG to negotiating such bargains. In low-capacity deepen its engagement and develop the environments, services will typically be tools necessary for identifying the entry partially delivered by private actors. points for sustained reform. The WBG has However, even when the state does not provided significant resources under previous World Bank 2017. 38  130 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations IDA Replenishments to support public  upport at least 10 IDA countries on •S sector reform and strengthen institutional enhancing service delivery performance in capacity. Under IDA18, the WBG proposes State-owned Enterprises (SOEs) through: a set of “enhanced” interventions that: (i) (i) Performance Agreements and/or (ii) build an integrated “One WBG approach” to increased Transparency through Annual strengthening Governance and Institutions Published Independent Audits; with greater synergies with other special IDA themes; (ii) leverage opportunities provided by  upport health institutional capacity to •S the new Global Practices model to mainstream respond to pandemics by supporting governance in sectors; (iii) support global 15 IDA countries to develop pandemic demand for policy reforms in Tax, and Illicit preparedness plans; Financial Flows (IFFs); and (iv) Pandemic  evelop frameworks for governance and •D prevention. Specifically, IDA18 will focus institutional arrangements for multi-sectoral on the following Governance and Institutions pandemic preparedness, response, and policy actions: recovery in 15 IDA countries. Increase domestic resource mobilization • (DRM) by conducting Tax Policy B. PIPELINE Assessment Frameworks in 6 IDA countries by FY20, of which 2 are in FCV; The GGP has 24 active operations in 13 FCS countries, with net commitments of Improve public expenditure and financial • US $5.4 billion, including $400 million in management (PEFM) through an increase IDA funding.39 Except for one Development in the coverage of IDA countries that undertake Public Expenditure and Financial Policy Financing (DPF) project in the Central Accountability (PEFA) assessments to African Republic, all projects are Investment inform preparation of their Systematic Project Financing (IPFs). 71% of active projects Country Diagnostics (SCDs); are in the Africa Region, and 21% in South Asia. The bulk of these engagements involve • Increase coverage of Open Contracting Administrative and Civil Service Reform and principles in IDA countries (including Public Expenditure and Financial Management preliminary procurement assessments), (PEFM), and notably, provision of recurrent leading to improved disclosure of contract cost financing in emergency situations. Other data and compliance with international areas of intervention include decentralization, open contracting transparency standards; capacity building for more effective service delivery, tax policy, and justice reform. Perform IFF assessments in 10 IDA • countries by FY20; Total of US $ 5.4 billion includes the US $ 4.5 billion Afghanistan Umbrella Trust Fund, managed by the GGP, which funds projects 39  across sectors in the country. Section 4 131 FIGURE 25: NUMBER OF ACTIVE PROJECTS IN FCS COUNTRIES - BY FY OF APPROVAL, AND SUM OF COMMITMENTS ($M) (FY18 IS PLAN AS OF SEPTEMBER 1, 2017) Note on Graph: Please note that the Umbrella TF for Afghanistan ($ 4.5 Billion approved in 2002) is not included in the graph, as it is an outlier in terms of volume. The FY18 pipeline in FCS: 11 projects - with 2017, in partnership with the FCV CCSA, a net commitment of US $162 million (all IDA pilot to develop resilience and mitigation funding) - represents a significant increase approaches in Guinea, Nepal, Niger and in the GGP’s FCS engagement, compared Tajikistan, as well as an initiative focused on to previous FYs. AFR leads the regions with addressing the spillover effects of the refugee six operations, followed by EAP with two, crisis in Jordan. Through these interventions, and LCR, MNA, and SAR with one each. the GPSA is demonstrating the importance All operations are IPF, excepting a follow- of social accountability to restore trust and up DPF in CAR. Core issues of improving governance in fragile contexts, and is testing public financial management (PFM), and new approaches to expanding effective citizen strengthening capacity for service delivery, engagement in fragile contexts. remain the cornerstones of GGP lending operations in FY18. New operations are Nordic Trust Fund – Human Rights in FCV. placing increased focus on domestic resource Since its inception in end-2008, the Nordic mobilization (beyond simply improved tax Trust Fund (NTF) has helped the Bank develop policy; e.g. in Chad and Afghanistan), and an informed view of the relationship between citizen security and accountability (Haiti, human rights and the work of the Bank. Areas Liberia). There is also a focus in Afghanistan of support span a broad range of themes and on adopting a programmatic approach to PFM situations: support to increase participation which will see the consolidation of projects in and a more transparent way of targeting the portfolio. in Sudan, studies looking at human rights and civil registry in various FCV contexts in Global Partnership for Social Accountability Africa, the involvement of religious leaders (GPSA) and Fragility. The GPSA is playing its in sexual and reproductive health rights in part to ensure that citizens’ voices are heard in the Sahel Region, promotion of the right to FCV. Boosting its FCV portfolio, initiated with a education in Haiti through coordinated data grant in the DRC, GPSA launched in February collection, intervention design and stakeholder 132 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations engagement, improvement of minority On the knowledge and learning side, children’s participation in education in Kosovo, GGP has 39 active Advisory Services support to the Myanmar CMU to conduct an and Analytics (ASA) projects in 23 FCS analysis of the interaction between human countries, covering all product lines, and rights and Bank operations in the country, representing a wide range of core public and improvement of the representation and sector issues. Analytic sector work is the most participation by Indigenous Peoples in DRC. dominant product (19 of 39 tasks), including Moreover, the NTF supports the Transitional traditional work such as Public Expenditure Demobilization and Reintegration Program Reviews and Public Expenditure and Financial (TDRP) work with the African Union to provide Accountability (PEFA) assessments, along assistance on integrating a human-rights based with new areas of engagement such as approach in the disarmament, demobilization PforR Readiness Assessments (Mali), study and reintegration of former combatants, with on citizen engagement (Togo), and analysis a specific focus on DRC, CAR, the Chad Basin of Governance and Political Economy countries, Somalia, and Guinea-Bissau. (Comoros). The GGP is also providing 10 technical assistance products, ranging from strengthening mining governance in Sierra FIGURE 26: GGP ACTIVE ASA IN FCS Leone, to urban safety in Port Mosby (Papua New Guinea), to ensuring accountability using ICT in the education sector in the Democratic Republic of Congo. Complementing these are longer-term programmatic engagements, e.g., governance analytics in Solomon Islands, technical assistance (TA) on municipal PFM in West Bank and Gaza, and TA on capital budgeting in Zimbabwe (Knowledge Products [KP] and External Training [TE] are only small parts of the ASA portfolio). Section 4 133 C. INNOVATING FOR IMPACT ENGAGEMENT IN COUNTRIES WHERE THERE IS ACTIVE OR RECURRING CONFLICT In Libya, the GGP has devised an innovative and flexible approach to continue its engagement and provide targeted technical assistance. Following Libya’s popular revolution of 2011, and subsequent political upheaval since 2014, immediate challenges are to achieve peace that would lead to macro-stability and to establish a functioning and inclusive government for delivery of basic public services. In light of diminished fiscal and external buffers, the Libyan authorities face significant short-term challenges that need to be addressed to reduce the probability of a relapse into conflict after peace is achieved. While responding to urgent social demands remains a priority, ensuring macro-economic stability and maintaining investor confidence require greater policy coordination among various institutions. A peaceful political transition, underpinned by commitment to good governance and the rule of law, is essential to securing long-term economic progress. Working within the constraints of a very fluid political and security environment, the GGP built on a well-established public financial management program (PFM) by forming a broader, yet targeted, program aimed at providing the building blocks for supporting the public administration in the transition process from conflict and instability to peace and an inclusive state able to effectively deliver services. The flexible design of the program has enabled the GGP team to adapt its targeted technical assistance to the shifting nature of the political environment. In particular, the broad governance program (also supported by the EU and DFID) details two separate scenarios for engagement: under the first scenario characterized by continued political instability, the Bank team is implementing capacity building activities, analyses, and knowledge sharing in the broad areas of PFM and governance which can be rapidly scaled up (or scaled down) as the situation requires; under a second scenario, conditioned by a more stable political environment, the Bank’s team has proposed a much more systematic engagement with the government focused on state building to ensure the effective, inclusive and accountable functioning of the government. The components of the GGP engagement include: (i) Technical assistance to support Public Financial Management (PFM) interventions and strengthening the functioning of the public administration and accountability institutions; (ii) Targeted capacity building on PFM issues and broad governance issues; (iii) Development of a solid national statistical system; (iv) Technical assistance to support the introduction of a comprehensive and effective social safety net; (v) Building partnership between the public administration and civil society. 134 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations INTEGRATED APPROACHES FOR RECURRENT COST SUPPORT, PFM AND CIVIL SERVICE REFORM In Somalia, the first program of the Series of Projects (SOP) for the Somalia Governance program, the Recurrent Cost and Reform Financing Project, was implemented for 8 months from August 2014 to April 2015. During this short implementation period, the number of civil servants who were paid was doubled (from 1,970 to 3,890); and the number of payroll verifications by independent agents exceeded the original target. Based on these rapid results, the Somalia Governance program has been taking an integrated approach through i) transparent and sustainable support to civil service salary payments—this serves as a mechanism for legitimizing the Government; ii) strengthening the financial management system via support to an effective PFM system and strong oversight including the engagement of citizens; and iii) merit-based recruitment and enhanced capacity of civil servants. This troika of projects is underpinned by upstream knowledge activities with cross- cutting objectives such as promoting fiscal federalism and public expenditure reviews in sensitive yet strategic sectors (security and justice). In the Central African Republic, the Emergency Public Services Response Project (EPSRP) was approved in May 2015. This $40 million fast-response project has played a critical role in the post-conflict transition phase. The project reestablished an operational payroll system by contributing to the payment of six months of back wages for 17,421 eligible civil servants and state employees. More than 80% of civil servants have resumed work. There are no longer salary arrears. The Government payroll system is now operational. The project supported the establishment of the Central Accounting Agency of the Treasury as a fundamental step in the PFM reform process. Following this, a two-year programmatic DPO is being prepared. Given the need to increase revenues and improve the fiscal space to increase priority spending, the DPO will focus on mitigating and tackling revenue shortfalls, increasing priority spending, and key strategic reforms such as PFM in view of stimulating the economic recovery of the country. Section 4 135 SUPPORTING ACCESS TO JUSTICE In Jordan, supporting access to justice for vulnerable populations including refugees, thus lowering the risk of conflict between refugees and host communities. The GGP is seeking to increase access to legal aid services for poor Jordanians as well as for refugees in host communities, thus helping prevent conflicts between refugees and host communities (e.g. housing, labor cases) and between refugees and the state (e.g. access to civil documents, arbitrary arrest/detention). The services are delivered by CSOs, which have MoUs and referral mechanisms with relevant public sector entities. Syrian lawyers, themselves refugees, have provided information services and thus created trust in refugee communities. New services, better tailored to address problems more specific to refugees, were developed (access to civil documents, dealing with child marriage and arbitrary arrest or detention by security forces). To date, more than 17% of beneficiaries of counseling/legal representation are Syrian refugees. INSTITUTION BUILDING In Afghanistan, the capacity of the civil service is being strengthened. Despite successes in a number of areas in Afghanistan (PFM, customs), there remain serious weaknesses across the civil service, linked in part to the history of donors paying staff, contracted under projects, salaries that are multiples of civil service norms, as well as the continued existence of the so-called “parallel” civil service employed and paid by donors or otherwise off-budget. A programmatic approach to improve governance is therefore supported in Afghanistan, the key instrument being the CBR (Capacity Building for Results Facility). The aim is to increase on-budget service delivery and reduce reliance upon the “parallel” civil service, which is fiscally unsustainable and drains capacity away from the core civil service. This is done by clarifying the mandate and HR practices of core ministries, recruiting staff according to agreed, merit-based criteria, with a common salary and HR management base, and facilitating the transition away from previous ad hoc practices. By 2020, CBR, through the injection of enhanced capacity into the core civil service, is expected to contribute to the reduction by half (50%) of the over 15,000 externally-funded staff responsible for the delivery of services and execution of core government functions. (Around 5,000 are currently employed as consultants by government through donor finances, with many more employed off-budget). Reduction of the prevailing heavy reliance on externally- funded staff will improve both accountability and policy development ownership, and will considerably enhance the fiscal sustainability of the civil service. 136 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations AGILE PROCUREMENT IN FCS In Myanmar, GGP supports a strong and complex procurement process to bring off- grid electricity to rural households. The IDA financed National Energy Project’s off-grid component targets communities in rural areas, located far beyond the existing national grid and unlikely to receive grid access in the foreseeable future. A 60 Watt peak (Wp) solar home system is capable of meeting a typical household’s basic electricity needs such as providing lights and a dependable source of energy for phone battery charges and for the TV or radio. The first procurement package for the supply and installation of solar home systems (12 lots by regions/locations) was launched through international competition in early 2016, with an estimated budget of $64 million. After international and national advertisements, 354 bids for a total of 12 lots were submitted by the bid submission deadline. It took two days to open the bids and 3 months for the Department of Rural Development (DRD) to evaluate them. The Bank issued its No Objection to contract awards within four working days. The contracts awarded amounted to $27 million. The savings of $37 million were used for increasing the number of solar home systems, thus benefitting more families, and for reducing households’ contribution by 30%, thus making it more affordable for all. With the strong partnership between the DRD and the World Bank team, such a large and complex procurement was successfully concluded with a very transparent process, producing highly efficient results. Section 4 137 SMART GOVERNANCE The ieGovern Initiative is a portfolio of 20 Impact Evaluations (IEs), five of which in FCV. They are designed with the objective of embedding rigorous research into Governance GP operations. This is meant to improve project performance by: i) systematically and rigorously collecting evidence from operations to inform project design; and ii) helping operational task teams in designing public sector management (PSM) operations in a results-oriented way that is firmly based in evidence on “what works” and “why”. The program is a collaboration with the Impact Evaluation Division of the World Bank Research Group (DECIE/DIME). Five of these IEs are currently being implemented in FCV settings: Attracting & Deploying Talent to Reform Civil Service (Democratic Republic of the • Congo – Civil Service Reform): This IE is exploring the optimal recruitment and training strategy for a new Young Professionals (YP) program. Measuring the Effect of Extrinsic and Intrinsic Factors in Improving Performance • in the Public Sector (Liberia – Civil Service Reform): The IE seeks to estimate the contribution of different sources of motivation – pecuniary (money)-based, task-based, and mission-based on the performance of public sector workers. Mining for Development: Improving Concessions Agreements in Sierra Leone • (Sierra Leone – Justice): This IE explores whether legal aid and mediation services make mining and agricultural firms invest more in local development. Making Services Work for the Poor in Fragile and Conflict-affected Contexts • (Democratic Republic of the Congo -- Subnational Governance): The main policy question underlying this project is how to best harness accountability mechanisms to improve service provision in developing countries. Governance and Grievance IE (Solomon Islands -- Subnational Governance and • Justice): This IE explores how increasing deconcentrated state capacity -- via trained Community Officers (COs) -- can help strengthen local governance and justice capabilities, by improving the functionality of both: (i) local/provincial service providers; and (ii) local governance structures. 138 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations MACROECONOMIC AND FISCAL MANAGEMENT GLOBAL PRACTICE A. STRATEGIC APPROACH missing and are, as a result, greatly appreciated by the government, development partners, The Macroeconomic and Fiscal Management and WBG teams. A recent update in Burundi, (MFM) GP’s strategic approach to FCS is for example, analyzed the distortions in the organized around: foreign exchange market due to overvaluation and developments in various sectors of the Monitoring, analysis, and diagnostics • economy. In the first economic update on of growth and shared prosperity using South Sudan, the GP focused on options for data and tools adapted to violent conflict coping with hyperinflation and its effects on the contexts, and real economy. In Sudan, the GP looked at the Financing operations which lock in • impact of potential sanctions relief and (jointly macroeconomic stability and create with SURR) provided an in-depth analysis of fiscal space and promote policy reforms refugees and forced displacement, and in aligned with reconstruction needs while Somalia, the GP provided options for domestic recognizing heightened tradeoffs revenue mobilization in a context where between reforms and social stability domestic revenues are only around 2 percent in these contexts. of GDP. The scope of engagement ranges from The economic monitoring helps set the stage extensive monitoring of economic for our comprehensive engagement with developments (often published as Economic the governments of FCVs, including through Updates), to in-depth analytical work (e.g. technical assistance (TA), policy lending, and, Country Economic Memoranda, Policy Notes), more broadly, in support for donor meetings to technical assistance, to budget support and including those focused on reconstruction recurrent cost operations. Most of the work finance. In each of the above cases, the Bank the GP does is carried out jointly with other has a more sustained ground presence than the practices and development partners. This IMF (which often conducts surveillance missions engagement is constantly evolving from rapid outside the country), and the Bank is thus the response and reconstruction to long-term primary source of fresh macroeconomic analysis capacity and institution building, taking careful for these countries. account of the limited load-bearing tolerance While public expenditure reviews (PERs) and in post-conflict situations. country economic memoranda remain the The GP’s work in Africa illustrates the staples of analytical work, MFM has led the breadth of its engagement and the development of innovative methodologies challenges its client countries face. In all for assessing the costs of conflict in the form Sub-Saharan Africa (SSA) FCVs, the GP carries of Economic and Social Impact Assessments out macroeconomic monitoring and corporate (ESIAs). The latter have become a staple of our due diligence (e.g. IDA reporting). Recent engagement in MENA. This kind of assessment innovations include new economic updates that was developed for situations that did not fit bring together data, analysis, and a forward the typical post-conflict needs assessments look that have in many cases been sorely (PCNA), such as the one done in Ukraine, Section 4 139 because of ongoing hostilities or spillovers country’s fragility, public financial management from conflicts (PCNAs had also increased in (PFM) systems became much more robust. The institutional complexity, which was becoming GP continues to innovate by transitioning the a deterrent for stakeholders to undertake incentive program into a mixed program, with a them). The new assessments work out both the reform matrix for the following three years. direct and indirect costs of the conflict, while avoiding double-counting, and go beyond the emphasis on damage to physical infrastructure. B. PIPELINE For example, a recently concluded assessment As of September 18, 2017, the MFM GP had of Syria focused on the destruction of human an active portfolio of $2.2b (12 operations) lives, of physical and institutional capital that across FCV affected countries with a led to a slowdown in growth, government pipeline of $1.5b (12 operations) and 40 capacity, and of resources. In recent years, active Advisory Services and Analytics (ASA) the GP has carried out similar assessments projects in FY18. All our operations are multi- for Lebanon and northern Iraq – both cases practice, carried out in close collaboration with where the issue was not physical damage development partners. from conflict, but spillovers due to forced displacement and disruption to economic In recent years, with the collapse of activity from wars in nearby areas (Syria and global oil prices, persistently unstable northwestern Iraq, respectively). security situations, and the high fiscal cost of ongoing humanitarian efforts, Because of its continuous macroeconomic MFM’s lending operations have focused monitoring and maintenance of macro-fiscal on providing timely response to FCV frameworks, MFM is well equipped to lead countries to cover their urgent short-term FCV budget support operations along financing needs, while supporting them to with other GPs and in collaboration with better manage fiscal risks, promote economic development partners. In Iraq, for example, diversification, and more effectively protect the the GP is currently preparing a $1 billion poor and vulnerable in a difficult economic and Development Policy Loan. security environment (e.g. Chad). This support The GP’s work in Afghanistan is extensive in has helped governments mitigate the impact scope and innovative, supported by MFM of the crisis and boost resilience, while setting presence in the country. On the TA side, the conditions for growth recovery and economic GP has brought all Bank support of the Ministry diversification in the medium term. of Finance (MOF) – a key part of our support Thus, the pipeline is emphasizing a more to Afghanistan – into three pillars: an incentive integrative approach by mobilizing program; an Investment Project Financing experience across practices (including (IPF) instrument across all aspects of the Governance, T&C, Energy, Water and Ministry of finance; and TA financed by a Bank Sanitation, Education, and Agriculture) to executed trust fund (TF). The incentive program enhance policies and regulatory environment is innovative; from the outset, it provided for private sector investment and increased unconditional budget support with modest productivity. Several operations conditionality. There is a monitoring agency in FCV focus on fiscal sustainability and controlled separately by the Bank. This set-up business environment. The GP is aligning helped boost the government fiscal space, our engagement closely with the contributed to strengthening its institutions, cascade approach. and provided a reasonable monitoring mechanism. Over the years, despite the 140 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations A few examples of projects follow. Chad: First Programmatic Economic Recovery and Resilience Grant Development West Bank and Gaza Fiscal Stability and Policy Operation (DPO) ($60m, Q4FY18) Business Environment ($30m, Q2FY18)  his proposed First Programmatic •T This proposed $30m Development • Economic Recovery and Resilience Policy Grant (DPG) will support the Operation is designed to support the Palestinian Authority (PA)’s efforts to Government of Chad as it strives to better strengthen fiscal stability by improving manage fiscal risks, promote economic the alignment of incentives and payment diversification, and protect more effectively discipline underlying fiscal transfers linked the poor and vulnerable. to utility financing shared by the PA, the Government of Israel (GoI) and Local  uilding on two emergency operations •B Government Units (LGUs) – where currently disbursed in FY16 and FY17 which have unpaid bills of LGUs distort revenue helped the government cover its urgent transfers between GoI and the PA. short-term financing needs and supported the government’s policy response, this The $30 million provided by the • series aims to re-focus World Bank proposed operation for the PA’s 2017 support on substantive structural reforms budget will directly leverage other in support of better management of donor financing in the amount of fiscal risks, economic diversification, and roughly $60 million per year through the more effective protection of the poor and Palestinian Recovery and Development vulnerable in a very difficult economic and Plan (PRDP) Trust Fund. The operation security environment. also sends a strong positive signal to other donors that directly provide bilateral  he operation builds on the reform •T budgetary support to the PA. agenda supported by the predecessor operations, particularly with respect to The operation proposes a Cascade • rationalizing public expenditure, improving approach: Upstream reforms to ensure the quality of public resource management more transparent, accountable, and and establishing a social safety net. sustainable public finances are critical to lay the foundation for stronger  uilding on recent emergency •B private sector development and development policy financing operations attract private investment. The DPG and the planned debt restructuring, supports improvements to the business this series will support the government environment, which encourages formal in its efforts to shift gears towards a private sector development. The proposed medium term structural policy agenda. To DPG will complement the private sector mitigate the impact of the crisis and boost enhancement facility under development. resilience, the authorities are promoting Its prior actions will continue progress the development of programs supporting to create the foundations for improved coping mechanisms for the poor and creditworthiness and payment discipline vulnerable, while setting conditions in the utility and social sectors, while for growth recovery and economic streamlining and modernizing the legal diversification in the medium term. In this and regulatory framework for private firms. context, the reforms supported by the This is a multi-sectoral DPG that proposed series focus on reducing fiscal includes contributions from T&C, risks while boosting growth in the non-oil Water and Energy. This is the eighth sector and enhancing social protections operation to support WB&G. and services for the poor and vulnerable. Section 4 141 The proposed series is articulated • deliver aid in such a difficult context. The WBG around three intertwined pillars, and pooled donor financing in the ARTF to support supports measures to (i) enhance fiscal state-building process and reconstruction management and improve oversight with the help of two instruments. One is the and transparency of State-Owned recurrent cost window (RCW) and the other the Enterprises (SOEs), (ii) boost agricultural investment window. productivity and develop Information and communication technologies (ICT) The RCW was the dominant financing for more inclusive growth and economic instrument in the early years of country diversification, and (iii) put in place a engagement. It financed part of the well-targeted and fully operational social Government’s civilian operating budget in the protection system for the poor and form of quasi-unconditional budget support. vulnerable. These measures build on It evolved into a hybrid budget support progress achieved under the Emergency instrument commanding half of today’s ARTF Fiscal Stabilization Operation (EFSO) resource envelope (approximately $900 approved in June 2017. million per year). Initially, disbursements were made against the submission of expenditure statements that meet a set of eligibility C. INNOVATING FOR IMPACT criteria related to expenditure category and compliance with public financial management Afghanistan: Recurrent Cost Window/ (PFM) laws and procedures. The only pre- Incentive Program condition was an approved national budget. To The Afghanistan Reconstruction Trust Fund maintain incentives for strengthening revenue (ARTF), established in 2002, is the WBG’s collection, the original intent was to phase out largest single country, Multi-Donor Trust RCW support once revenues increased and the Fund (MDTF). The program development government could sustain its operations. objective is to support fiscal stability and a The RCW was the MOF’s flagship reform program that aims at achieving greater program and there was very large fiscal self-reliance and sustainability though degree of ownership. The external nature increasing domestic revenue mobilization of the independent Monitoring Agent and strengthening expenditure management. added credibility and proved essential for To date, the ARTF has absorbed $9 billion donor acceptance and confidence. The in resources despite a challenging and high- light administration allowed the capacity- risk operating environment. One of the most constrained team and client to focus on important factors for success and high level core activities and problem-solving. of absorption are the Recurrent Cost Window Afghanistan achieved greater fiscal (RCW) / Incentive Program (IP). self-reliance and fiscal stability. In 2001, several decades of conflict left The question is: which instrument to the country with a destroyed economy choose? The team proposes to regularize and devastated infrastructure and human the RCW/IP type operations as a Program- capital. The new government and donors for-Results (PforR) & DPO hybrid with some had little knowledge and understanding of additional flexibility to allow for an evolution capacity and political economy constraints. The from unconditional budget support during question was how to best engage and quickly the immediate re-engagement phase to 142 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations performance-oriented financing in line with and political risk. It aims at supporting the growth of institutional capacity. This will allow government in maintaining macroeconomic for very simple restructuring processes or a stability through a gradual adjustment to series of operations approaches to allow for lower oil prices, and provide fiscal space to frequent adjustments through implementation. implement reforms. It supports reforms around It will also have FCS appropriate PFM control three pillars: improving (1) budgetary spending; mechanisms such as the Monitoring Agent. (2) energy efficiency; and (3) the transparency of state-owned enterprises. Iraq: Structural Fiscal Consolidation, Stabilization, and Expenditure The DPF series supports policy actions and Rationalization Programmatic (DPF) institutional changes that contribute to increasing private sector participation in the In December 2016, the World Bank Board gas sector, addressing constraints identified approved a Development Policy Financing by business owners and creating a regulatory (DPF) loan in the amount of $1.44 billion environment that defines a level playing field as part of a programmatic series of two for the public and private sectors. operations. This operation followed an emergency DPF operation of $1.2 billion approved by the Board in December 2015. Iraq has been facing the dual shock of a fiscally, socially, and politically costly brutal war waged by the self-styled Islamic State of Iraq and Syria (ISIS), and the sharp fall of the price of oil. The December 2016 operation is part of the international community’s support to the government’s efforts to bring peace and stability to Iraq through the provision of timely and large external financing, and the support to measured structural reforms. The DPF series is part of an international support package to Iraq, which includes $443.8 million of the DPF loan guaranteed by Canada and the United Kingdom, a $5.3 billion three-year Stand-By Arrangement (SBA) approved by the IMF Board in June 2016, and budget support operations that were expected to be provided by Japan and France by mid-2017. The proposed operation is essential to safeguard economic stability and basic service delivery while setting the ground for structural reforms that would support private sector development and inclusive growth. This operation is implemented in a context of high macroeconomic, social Section 4 143 POVERTY AND EQUITY GLOBAL PRACTICE A. STRATEGIC APPROACH and inhabitants of informal settlements in Iraq, and nomadic populations and immigrants from In FCV settings, the Poverty and Equity GP Yemen in Djibouti. At the same time, high risk supports the achievement of the twin goals and rapidly changing environments require of eradicating extreme poverty and boosting innovation in the modality through which the shared prosperity through its key lines of work: information is gathered. The surveys conducted in Somalia and Mali, among others, leverage 1. Data collection and statistical new technologies to measure welfare and capacity building identify service delivery rapidly and frequently Monitoring progress towards the twin – and even follow respondents across time goals and working on closing data gaps is and space using tracking devices (nomads in especially relevant in fragile contexts. By Somalia) or mobile phones (internally displaced 2030, half of the global poor will be living in persons in Mali). low-income fragile and conflict-affected states. Due to the challenges faced in these settings Building local capacity by working through their move out of poverty will be harder. The local agencies: In contexts where the work done on measurement sheds light into government’s capacity was insufficient to the following key questions: who the poor are, implement a survey while ensuring sufficient where they are, how they live, what the drivers quality, like in Somalia, a firm was hired, but of those conditions are, and how they are the WBG at the same time established shadow being impacted by conflict and violence. assignments and capacity building workshops. In addition, a long list of government Different ways to collect data to monitor enumerators was used. In the West Bank and welfare in FCV. The data collection work Gaza, capacity for improved data management carried out in fragile contexts across AFR, MNA was supported through the development and SAR focuses on including underserved of a data tool for systematic data quality areas and population, keeping in mind that management, which is currently used by the displaced groups are often neglected in Palestine Central Bureau of Statistics. program design and service delivery. This is often due to their absence from nationally 2. Distributional analysis ex-ante and ex-post representative surveys or difficulties in The distributional work on estimating the reaching them to conduct traditional interviews impact of policy reforms, programs and crisis that can help understand their welfare and or shocks determines -ex-ante or ex-post- how vulnerabilities. That is why the GP has been they affect the welfare of different groups working with national statistical agencies and through which channels. In FCV settings to revisit the listing and sampling frames this work starts with the recognition of how to ensure adequate coverage of the entire sensitive these contexts are to changes and population – including internally displaced how social and political implications influence persons (IDPs) in Afghanistan, Syrian refugees the cycle of conflict. 144 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations 3. Diagnostics, Systematic Country Liberia - Economic impact of pandemics Diagnostics (SCDs) and beyond and humanitarian response. This project supported the measurement of the economic The GP provides a strong analytical lens impact of Ebola using a high frequency cell through the work in Systematic Country phone survey designed to monitor conditions Diagnostics (SCDs). Specific guidance is over the course of the Ebola crisis. This helped developed to make sure that the cross-cutting identify risk to social stability as well and nature of conflict and the adverse impacts of helped with the humanitarian response. The violence are incorporated throughout. For study was designed to provide rapid indicators example, the Palestine Inclusive Diagnostics from households at a time when conducting note examined the relationship between face-to-face surveys was extremely challenging. episodes of conflict and labor market outcomes. Episodes of conflict increased Myanmar – Targeting of interventions. volatility in already fragile labor markets, The Poverty and Equity GP worked with the which are characterized by movements of SPJ, Education, and Health teams to conduct workers into and out of employment over conflict sensitive geographic and individual short time periods. targeting. To build a database of conflict issues, the team have collaborated with DFAT and The GP is also developing other methods the Asia Foundation. In the field of education, to produce global approaches and cross- the team is supporting the collection of the sectoral diagnostics in FCV countries. first ever survey covering both government The WASH-Poverty initiative lays the ground and non-government schools, typically run by for more and better service delivery. The self-administered authorities. The module is work, in collaboration with the Water GP, part of an extended service delivery module was conducted in FCVs like Yemen, Nigeria, in a nationwide household survey. The data Haiti and West Bank Gaza, where it identified analysis will be conducted in collaboration binding constraints and possible solutions to with the education team, and will feed into an providing services to the most vulnerable. upcoming education project. 4. Operationalizing the twin goals: Afghanistan – Design of projects supporting strengthening the impact of operations returnees. The team informed the expansion The Poverty & Equity Practice supports the of the flagship Citizen’s Charter Afghanistan design and implementation of interventions Project. The project guarantees a minimum to increase the impact of Bank operations standard of core infrastructure and social on reducing poverty and improving the services to participating communities by welfare of the bottom 40 percent of the identifying districts with high rates of return population. It does so by providing sound of Afghan refugees. The surveys and primary analytics and monitoring and evaluation to date collection will also inform the design underpin operations and policies. This includes of a livelihoods project and support interventions that seek to address UNHCR’s return monitoring. welfare-related causes of fragility and mitigate their impact: Section 4 145 B. PIPELINE TABLE 4: PIPELINE OF LENDING PROJECTS IN FCV SETTINGS LED OR CO-LED BY POVERTY AND EQUITY GP Country Project Delivery Size Poverty mapped component Nigeria Fiscal Governance and FY19 200M 30M Institutions Project South Sudan Statistical Capacity Building FY18 8M 8M Liberia Statistical Capacity Building FY19 5M 5M Sierra Leone Statistical Capacity Building FY19 5M 5M Mali Improving Mali's FY18 20M 20M statistical system Niger Statistics for a fact FY19 20M based society Rep Dem Congo Additional Financing FY18 20M 20M Statistical capacity building Mali Second poverty reduction FY18 40M 40M and inclusive growth DPO Myanmar Data Analysis and Statistical FY18 2.4M 2.4M Capacity Building C. INNOVATING FOR IMPACT 1. Building the evidence base for policy on forced displacement The challenges faced in identifying and South Sudan – Representative IDP Survey addressing poverty and exclusion in FCV and Measuring Consumption of IDPs. IDPs contexts has required the development of are not only often excluded from national innovative solutions. The WBG has adopted household surveys, but little is known about novel approaches that have allowed us to the bias introduced by different sampling generate a useful evidence base for policy and techniques used in chaotic environments like programs aimed at improving welfare of the IDP camps. To close this knowledge gap, the least well-off. Special emphasis on reaching WBG conducted a census in an exemplary excluded areas and populations, including IDP camp in South Sudan and thereafter internally displaced, refugees, and nomadic implemented different sampling techniques to populations, which are not typically covered assess how to minimize the bias. This will help in traditional data collection and thus often to determine the trade-offs between sampling do not benefit from interventions to improve techniques, their complexity and costs with the welfare. Operating in FCV contexts has precision of estimators. Experience working required creative methodological with displaced communities shows that IDPs approaches and flexibility to respond to often tend to under-report consumption in the challenging situation on the ground, and belief that this will help to receive more aid. the use of new technologies to rapidly By developing behavioral nudges like truth answer relevant policy questions. primers in the questionnaire design and testing the impact of the nudges on reporting behavior for consumption, the WBG is improving the quality of questionnaires and the ability to accurately measure consumption and poverty levels for vulnerable populations relying on aid. 146 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations 2. Responding to challenging contexts in enumerators who provide monthly feedback data collection: innovative methodologies on welfare, security and economic activity to assess progress in the implementation of the Innovation is always good and is all the more peace accord. critical in these contexts. To this end, WBG teams have adapted tools and approaches Sierra-Leone – Ebola survey. Collecting data to follow displaced people across space and face to face data during or following a disaster time, getting comprehensive information is not always possible. The Ebola outbreak from a variety of sources (high frequency in Sierra Leone was such a case. By using data, satellite data, qualitative evidence etc.). mobile phone interviews, it was none the less The main results have been to: (i) create a possible to collect representative and reliable strong evidence base to improve design of data from households affected by this crisis. development policies and projects; (ii) include This information was instrumental in the Bank’s excluded populations in programs; (iii) achieve assessment on the welfare consequences and better targeting and more effective and economic impact. efficient use of resources; (iv) estimate impacts and transmission mechanisms of conflict and Approach to cross-sector themes such as violence; and (v) integrate risks with policy and preventing crisis/conflict and leveraging IT, service delivery decisions. innovative financing, third-party monitoring, non-governmental organizations, and Iraq – Rapid survey with small expenditure partnerships in your FCV engagements. sample. The team is providing technical assistance to the Central Statistics Office (CSO) Afghanistan – The WBG works to improve and the Kurdistan Regional Statistics Office third party and project monitoring systems (KRSO) to use innovative methodologies using remote sensing to inform design and to measure and track the well-being of the conduct monitoring (for infrastructure projects), population in a context where a nationally and detect impact (e.g. irrigation), building in representative household survey for citizen engagement and feedback. poverty is currently not feasible and yet much needed for targeting. Yemen – Collaboration with the WFP to leverage their ongoing monthly food security 3. Measuring the impact of shocks, conflict surveys covering each governorate. In and fragility for policy response cooperation with WFP, which has set up a Nigeria, Somalia, South Sudan, Yemen – rotating panel of households via random digit Emergency Response Survey. In collaboration dialing to better understand the evolution of with the FCV CCSA, an innovative phone food security amongst the broad population, survey was developed. The surveys will the WBG is piloting a short employment/ help to inform the World Bank’s emergency livelihood module in their survey to ensure drought response at the humanitarian- that the addition of a short module will not developmental nexus. affect their ongoing survey, with the hopes of implementing a set of rotating modules Mali - Assessing progress of peace accord. that can help to better inform the country The Iterative Beneficiary Monitoring system team of urgent needs. has introduced a solution to limited supervision and monitoring due to insecurity by directly involving beneficiaries. This has resulted in just-in-time, effective engagement of citizens in project implementation and monitoring, in the absence of resources for third party monitoring. The system depends on a network of local Section 4 147 TRADE & COMPETITIVENESS GLOBAL PRACTICE A. STRATEGIC APPROACH Recovering from and Mitigating Crisis. Common responses to active conflict situations, As an integral part of society, businesses such as cash for work and support for service and entrepreneurs both large and small delivery are important interventions to respond face the caustic effects of fragility, conflict to urgent needs, but often are not designed and violence (FCV) in their countries - to leverage private enterprise as a channel loss of life, loss of trust among people and for shoring up community resilience and communities, social discontent and discord, sustainable recovery. T&C strategy focuses forced displacement, physical destruction, and on enabling local enterprise revival and unemployment. The private sector accounts restoring supply chains that contribute to for 90 percent of jobs in the developing world, recovery and reconstruction, to mitigate further so providing favorable conditions for business losses to jobs and livelihoods, reestablish is fundamental to restoring livelihoods. A economic ties between different groups, and community’s resilience to and ability to recover provide essential goods and services to the from the effects of FCV can, to an extent, be population. In contexts of forced displacement, gauged by the vibrancy of its local businesses employment programs that link the labor force – from the bakery or internet café down the to competitive sectors address the medium street to the local factories and banks. At the to long-term aspects of displacement and same time, local businesses, particularly the can help mitigate tensions between host smaller ones, have limited means to cope with communities and displaced persons. the effects of conflict, and consequently many reduce or even cease their business activities Driving Growth. In countries in transition outright. They and their workers then join the or emerging from conflict, private enterprise ranks of the unemployed and discontented. represents the pathway to sustained recovery Jobs, goods, and services are lost to the and growth. Fragility and vulnerability to community, further contributing to fragility recurring conflict and violence often persists and insecurity. even in post-conflict contexts. Private enterprise in such contexts is risky, with The Trade & Competitiveness GP has built manifold effects on businesses including its strategy in FCV-affected countries around insecurity, reduced access to labor, loss of FCV dynamics and how the private sector creditworthiness, disruption of supply chains contributes to achieving peace and stability and access to markets. Beyond the challenges through recovering from and mitigating crises, of unreliable power supply, corruption, and driving growth, and supporting resilience and limited access to finance typical to developing prevention. Each of these dynamics are at work countries, private enterprises in FCV-affected to varying degrees and in different ways in countries usually face weaker investment FCV-affected countries, and often need to be climates. 70 percent of the economies on addressed all at once. If the short-term effects the Bank Group’s Harmonized List of Fragile of a crisis are not mitigated, the crisis can Situations rank in the bottom quartile of the escalate and opportunities to drive recovery Doing Business ranking, discouraging potential may not take hold. Supporting resilience and investors and making investment climate prevention of future conflict is always a priority, reform a priority for countries since conflict is often cyclical and repetitive. 148 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations emerging from conflict and seeking to boost Supporting Resilience and Prevention. private investment. Firms in FCV-affected Strong institutions are the backbone of countries also tend to be smaller and less resilience and prevention, and that includes a innovative and competitive than their robust and competitive private sector as well counterparts in non-FCV countries. They need as regulatory and other government structures support to upgrade managerial capabilities, that enable private sector activity. T&C’s work production skills, and market connectivity. on public-private dialogue focuses on creating Development interventions that help private accountability and cooperation between the enterprise overcome the distortive effects of public and private sectors. Supporting the FCV, mitigate their risks, and create new growth capabilities of business organizations enables and market opportunities can help sustain those institutions to advocate for better recovery and even contribute to addressing policies and programs and can contribute to some of the fundamental drivers of fragility strengthening coalitions for peace and stability. and conflict by providing economic opportunity and livelihoods. FIGURE 27: T&C ACTIVE PORTFOLIO IN FRAGILE STATES As of September 2017, # Projects Section 4 149 B. PIPELINE the FY18 pipeline includes two Development Policy Financing (DPF) loans and a Program-for- T&C currently manages or is partnered on an Results (PforR) operation with a value of $500 active lending portfolio of 18 lending projects million. T&C’s Advisory Services and Analytics with a value of $801 million in 14 countries. (ASA) portfolio in FCV remains broadly in This has been steadily growing since FY15. line with previous years, with an increased emphasis on enabling competitive sectors, The growth in T&C’s FCV lending portfolio such as agribusiness and trade logistics, and reflects a concerted effort within the GP identifying opportunities for the private sector to adapt its products and develop new to contribute to recovery and reconstruction in solutions relevant to FCV contexts, using FCV contexts. a variety of Bank lending instruments. In fact, FIGURE 28: T&C ACTIVE LENDING PORTFOLIO BY COUNTRY As of September 2017, In $M 150 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations FIGURE 29: T&C LENDING PORTFOLIO (BY YEAR OF APPROVAL) FIGURE 30: T&C ADVISORY PORTFOLIO (BY YEAR OF APPROVAL/DELIVERY) Section 4 151 TABLE 5: LIST OF T&C PROJECTS IN FCV CONTEXTS TO BE APPROVED/ DELIVERED IN FY18 AND FY19 FY WBG WBG WBG WBG Project Name WBG Commitments Product Project Project or Budget Type Country Status 2018 2018 1,250,000 ASA (IFC) Lebanon Tripoli Special Economic Zone Enabling Pipeline Regulatory Environment 2018 2,550,000 ASA (IFC) Sudan Sudan Investment Climate Program Pipeline 2018 ASA (WB) Togo TG-ASA Sources of Core Growth & Compet Active 2018 ASA (WB) Mali Mali Transport and Trade Logistics Study Active 2018 - ASA (WB) Côte d'Ivoire Côte d'Ivoire Infrastructure Financing Active 2018 - ASA (WB) Haiti Haiti Complement: Strengthening Competitiveness Active Implementation 2018 - ASA (WB) Iraq Improving Business Environment in Areas Covered Active by the Doing 2018 - ASA (WB) Lebanon Lebanon Economic Opportunities Diagnostics (LECOD) Active 2018 - ASA (WB) Libya Libya Supporting PSD Active 2018 - ASA (WB) Lebanon Lebanon- Privilege Resistant Policy- Deep Dive Active 2018 ASA (WB) Madagascar Madagascar - Leveraging Partnership thru Coordination Active Development 2018 100,000,000 Lending Africa Accelerated Program for Economic Integration DPO-2 Pipeline 2018 75,000,000 Lending Africa AFCC2/RI-Great Lakes Trade Facilitation SOP2 Pipeline 2018 5,000,000 Lending West Bank Innovative Private Sector Development Pipeline and Gaza 2018 10,000,000 Lending Sierra Leone Sierra Leone Sustainable Development Tourism Project Pipeline 2018 200,000,000 Lending Lebanon Lebanon National Job Creation Program Pipeline 2018 50,000,000 Lending Burundi Local Development for Jobs Project Pipeline 2018 50,000,000 Lending Afghanistan Additional Financing for Afghanistan New Market Pipeline Development 2018 10,000,000 Lending Sierra Leone Sierra Leone Agro-Processing Competitiveness Project Pipeline 2018 35,000,000 Lending Afghanistan First Public-Private Partnerships Project Pipeline 2018 200,000,000 Lending Myanmar Myanmar Development Policy Lending for Private Sector Pipeline Competition 2019 2019 ASA (WB) Iraq Bringing Back Business - Iraq Active 2019 ASA (WB) Sudan Sudan Developing Agribusiness SMEs and Integrated Active Agri-Parks 2019 - ASA (WB) Burundi Coffee quality improvement and market access Active 2019 20,000,000 Lending Comoros Integrated Development and Competitiveness Project Pipeline 2019 65,000,000 Lending Madagascar Madagascar Integrated Growth Poles and Corridor SOP-2 Pipeline 2019 - Lending Chad Chad Value Chain Support AF Pipeline 152 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations C. INNOVATING FOR IMPACT including 25 micro-hydropower projects in remote districts previously off-grid; 45 K-12 Responding to forced displacement. schools enrolling 20,000 students (including Given the long-term nature of many active 6,000 girls), and 15 hospitals and laboratories forced displacement situations, forced serving more than 20,000 patients per month. displacement requires not only short-term The project has received additional financing at humanitarian interventions but development the request of the Government of Pakistan. A solutions as well. T&C is supporting refugee- similar but smaller scale pilot project financing hosting governments in providing economic 200 SMEs as well as youth employment in opportunities for local communities and Yemen resulted in demonstrated impacts of refugees, as exemplified by a Program for 63% increased likelihood of capital investment Results (PforR) project in Jordan. The project and a 16% increased likelihood of employment includes labor market reforms that grant free for the participating youth, post-intervention. work permits to Syrian refugees allowing them to work in several sectors in Jordan, Cross-border trade. Cross-border trade while supporting reforms in the investment is typically an important source of goods, climate and investment promotion, along services, and incomes for populations in the with improvements to industrial zones. This border regions of fragile and conflict affected innovative developmental approach to states. Research on the links between trade the refugee crisis provides refugees, along and conflict shows that greater bilateral trade with workers in the host communities, the reduces the probability and intensity of conflict opportunity to be self-reliant and contribute to because of the opportunity cost associated the economy of the host country through their with the loss of trade gains. Furthermore, cross- labor and increased income and spending. border trade has been found to be strongly Improvements to the predictability of business associated with reduction in conflict involving regulations focus on SMEs and home-based citizens, and in particular, gender-related businesses as key vehicles for female and youth violence. Cross-border trade can improve employment among both Jordanians and resilience and social cohesion of neighboring Syrian refugees. communities and enhance growth prospects for all countries in the region. Moreover, many of Supporting the recovery of conflict-affected those who participate in cross-border trade in local enterprises. Local enterprises, particularly FCV-affected areas are women, one the most SMEs, are central to economic recovery in vulnerable groups, and these benefits from fragile conflict-affected areas, as illustrated trade are more likely to be directly invested by T&C’s ongoing engagements in the in the household, thereby further decreasing North of Pakistan and in Yemen. In response vulnerability to shocks. Hence, it is important to to the 2010 Post-Crisis Needs Assessment integrate a gender focus to interventions aimed (PCNA) findings and recommendations in at facilitating trade in the region. A practical the case of Pakistan, T&C launched the first example is the Great Lakes Trade Facilitation private sector development operation in the project which is supporting the improvement region - Economic Revitalization of Khyber of infrastructure and the implementation of Pakhtunkhwa (KP) and Federally Administered improved rules and regulations for trade and Tribal Areas (FATA) - to provide financial better governance at key border crossings support and business advisory to conflict- between the DRC and Burundi, Rwanda, affected SMEs in 2011. The project provided Tanzania, Uganda and Zambia. The project recovery grants to 1,601 crisis-affected SMEs, includes specific interventions to address creating 8,843 direct jobs in the KP/ FATA harassment and violence against traders, area. Service delivery was improved through especially women. support to private providers of public services, Section 4 153 Investment climate. Most fragile states and Agribusiness. In many conflict-affected areas, post-conflict economies are at the bottom of agribusiness accounts for a sizeable share the World Bank’s Doing Business rankings. of economic activity. To this end, T&C is Improving the business environment by partnering with other parts of the WBG easing the conditions of doing business can (Agriculture GP, F&M GP, IFC and others) to bolster formal private-sector activities, state foster economic growth in agribusiness by authority and service delivery. The agenda for facilitating market linkages, gender inclusion, investment climate reform in fragile countries value chain finance links, and public private is long, yet institutional capacity is typically dialogue. In Haiti, the WBG has engaged in low and patience for results is limited. Thus, value chain development for honey, coffee such reforms must be designed both for the and cocoa. In Côte d’Ivoire, close to $16 long-term goal of institution building and an million of loans have been facilitated for eye on the short-term goal of creating jobs cashew processors as a result of the passing and attracting investment. So, the long-term of the Warehouse Receipt Systems law, a ‘first’ effort of building institutions and developing in francophone Africa. It was achieved thanks regulatory capacity should be combined with to effective collaboration, notably with the faster-yield reforms that target priority sectors Agriculture GP, as well as with IFC’s Financial and support value chains. Active and recent Institutions Group (FIG), including the group’s projects in FCV include business environment Global Warehouse Finance Program. reform projects in Sudan, Guinea and Bosnia & Herzegovina. In partnership with IFC’s FCS Africa Program, the T&C GP is also working on the implementation of business environment reforms in many FCV countries in Africa. 154 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations 4.2 HUMAN DEVELOPMENT EDUCATION GLOBAL PRACTICE A. STRATEGIC APPROACH The Education Resilience Approaches (ERA) program is a special set of tools designed All countries need strong education systems by the Education GP to provide contextual that promote learning, life skills, and analysis of resilience processes in education social cohesion. Systems struggle to deliver systems based on local data on adversity, education services in adverse contexts such as assets, school-community relations, and natural disasters, political crises, epidemics, education policies and services in adverse pervasive violence, and armed conflict. Yet contexts. The ERA program’s ultimate goal is to education can also help mitigate the risks of contribute to an informed in-country dialogue such adversity and help children and youth on how to align existing education policies, to succeed despite severe challenges. In goals, and programs for a resilience approach emergency situations, through to recovery, to education service delivery. quality education is considered to provide physical, psychosocial, and cognitive protection The Education GP also uses other that can sustain and save lives, contributing assessment tools, such as the Recovery directly to the social, economic, and political and Peacebuilding Assessment (RPBA) in stability of societies. Learning spaces are often coordination with UN and other partners. at the heart of the community, symbolizing The RPBA supports more effective and opportunity for future generations and hope for coordinated reengagement in countries a better life. Until recently, humanitarian relief emerging from conflict or political crisis. It entailed the provision of food, shelter, water, has been used successfully in a multi-sector sanitation and health care – and education assessment in northern Nigeria, including was seen as part of longer-term development assessment of education needs. work rather than as a necessary response to emergencies. Today, education’s life-sustaining Education can however contribute to conflict and life-saving role has been recognized if it reinforces inequities and social injustice and the inclusion of education within the by denying access to education for some humanitarian response is now considered learners, or if curricula or teaching practices critical. In this regard, fostering education are biased. Education facilities can be targeted resilience is key, i.e. providing the ability of during conflict or students and education human beings (and their communities and personnel can be attacked on their way to and the institutions that serve them) to recover, from school. Well-designed education reform, succeed, and undergo positive transformation which can start soon after an emergency, in the face of adversity.40 is necessary to help ensure the protection of education systems and set conflict- affected societies on paths to sustainable peace and development. Joel Reyes. May 2013. What Matters Most for Education Resilience: A Framework Paper. SABER Working Paper Series 40  Number 7, World Bank. Section 4 155 FIGURE 31: THE EDUCATION RESILIENCE APPROACHES FRAMEWORK While the ERA program was designed in In general, the Education GP strategic the first instance to support the design of approach in FCV contexts is to engage education services in FCV contexts, it can with both risks and assets; work with the also be applied to other at-risk communities. community as first respondents in emergency; In fact, much of the early evidence on resilience and to build education systems for adaptable and education services comes from at-risk response to emergencies, recovery and communities in developed countries. continued development to promote the safety, socioemotional wellbeing, and school success of learners (see Figure 31). 156 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations B. PIPELINE TABLE 6 Project Name Region Country Commitments - Total Commitments - Commitments - IDA ($M) IBRD ($M) ($M) Myanmar Basic EAP Myanmar 100.00 0.00 100.00 Education project Event II SAR Nepal 60.00 0.00 60.00 EQRA SAR Afghanistan 100.00 0.00 100.00 Congo - Skills Dev. AFR Congo, 20.00 0.00 20.00 for Employability Republic of NE-Skills AFR Niger 50.00 0.00 50.00 Development for Growth - AF Gambia Education AFR Gambia, The 30.00 0.00 30.00 Sector Support Program Guinea Bissau AFR Guinea-Bissau 10.70 0.00 10.70 Education Project Burundi Skills AFR Burundi 30.00 0.00 30.00 Development Early Grade AFR Burundi 50.00 0.00 50.00 Learning Project Basic Education AFR Madagascar 55.00 0.00 55.00 Support C. INNOVATING FOR IMPACT Guinea, Liberia, Sierra Leone Ebola recovery and reconstruction project: Following the As noted before, the Education GP approach Ebola Virus Epidemic in which the countries to the FCV context is to combine support for had about 30,000 people falling ill and over safety, psychosocial support and on-going 11 thousand deaths, the three affected development of education systems. This countries received WB support to assist the section presents a few examples of projects post-Ebola-crisis return to schools, cleaning and interventions within this approach. and sterilization, early warning signals, psychosocial training and prevention. These Safety: programs complemented the activities of other Afghanistan EQUIP Project: Facing increased development partners and the Governments’ attacks on schools, the World Bank supported efforts to re-establish education services in the the Ministry of Education of Afghanistan three countries. to build boundary walls and to mobilize community support for the safety of children, teaching staff and schools. Section 4 157 Psychosocial Wellbeing: Working with non-state schools and agencies: Northeastern Nigeria Education Additional Financing: the design of the additional Liberia, Nigeria, Sierra Leone school financing includes psycho-social training for grant programs: As in other FCV countries, teachers to assist their own recovery as well especially in Sub-Saharan Africa, Global as improving the well-being of the students. Partnership for Education- and IDA-financed Upon completion of the training, teachers also basic education projects provide direct support receive a supplement to their salary. to schools. The key innovations include supporting non-public schools (Sierra Leone), Lebanon – Reach All Children with Education working with NGOs monitoring such programs (RACE) Project: the implementation of (Liberia) and establishing the foundations of the project included the provision of after- performance-based financing for schools school activities and psychosocial referrals for (Sierra Leone). displaced Syrian children and youth studying in double shift Lebanese schools. Haiti: The Project for an Education of Quality in Haiti (IDA $30m) focus on the government On-Going Education System Building: priority of improving education quality by Turkey Re-engaging Out of School and providing a comprehensive approach of At-Risk Youth. Following the preparation of interventions at the school level to improve the Resilience Education Infrastructure Project the quality of the public and non-public school (mapped within the Global Practice for Social, environment, management, learning conditions Urban, Rural, and Resilience (GSURR), to and teaching practices while also maintaining support access of Syrian refugees to Turkish access to non-public school and strengthening schools, the Education GP is preparing a the institutional capacity to measure the key project to continue to build the capacity of dimensions of the school learning conditions. the Ministry of Education to provide education services for at-risk populations. This project integrates psychosocial and grant support to the existing open education programs. It also builds long-term preparedness capacity for education response for migrants, including for reasons of displacement. 158 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations HEALTH, NUTRITION, AND POPULATION GLOBAL PRACTICE Global portfolio of operational and analytical health services to both refugees and host activities. The Health Nutrition and Population communities. Low income countries have (HNP) GP has a $2billion portfolio of active access to the IDA 18 refugee. In the health lending operations in FCV contexts in all six sector, Cameroon and Pakistan have projects regions of the world. This includes projects being prepared. across Latin America (Haiti); sub Saharan Africa (Burundi, Chad, Congo DRC, Congo Analytical and advisory activities. To create Republic Of, Cote D’Ivoire, Gambia, Liberia, a body of evidence of what works and does Sierra Leone, South Sudan, Togo, Zimbabwe); not in FCV contexts, the HNP GP is pioneering Middle East and North Africa (Yemen, Djibouti, several impact evaluations in the Democratic Iraq, West Bank and Gaza); Eastern Europe Republic of Congo and Republic of Congo. and Central Asia (Kosovo, Bosnia); South Asia In addition, the GP is providing technical (Afghanistan); and East Asia and the Pacific assistance to FCV clients to improve health (Myanmar, Papua New Guinea). The projects sector performance including statical capacity apply innovative health service delivery and building to the Ministry of Public Health in financing tools such as performance based Lebanon and to the Government of Myanmar contracting and results based financing to for pandemic preparedness and universal FCV contexts. They are responsive to the health coverage strengthening. Finally, the GP unique health needs of FCV contexts including is supporting a global work program on “big maternal child health, gender based violence questions” around forced displacement and and mental health. health in concert with UNHCR and supported by DfID, the results which will directly funnel Forced displacement and health. In the into country based programming among other top refugee and IDP hosting countries, activities. the HNP practice has $6.4 billion in active health projects including projects in LAC (Colombia), MENA (Iraq, Jordan, Lebanon, A. STRATEGIC APPROACH Yemen, Djibouti), ECA (Turkey, Ukraine), AFR Managing the humanitarian-development (South Sudan, Sudan, Nigeria, Chad, DRC, nexus. In fragile countries, pandemics and Somalia, Uganda, Kenya, Ethiopia, CAR), other health sector crises can threaten the SAR (Afghanistan, Pakistan, Bangladesh), viability and capacity of local institutions to EAP (Myanmar). These projects focus on deliver basic services. World Bank engagement strengthening host community health systems during an ongoing conflict/crisis reflects to ensure medium to long term benefits for the realization that humanitarian assistance all. Middle Income refugee hosting countries needs to be supported by developmental like Lebanon and Jordan have access to interventions: it is essential to maintain concessional lines of credit through the development assets (both human and Global Concessional Financing Facility. There institutional), for there to be a post-conflict are two new emergency health projects in future. For example, in Haiti and Yemen, to these countries which focus on providing Section 4 159 address the cholera outbreak, in addition to design that facilitates implementation while treatment and prevention measures, the Bank reducing risk. In Yemen, the health project’s is building the capacity of the relevant water implementation is reviewed every 3 months to institutions’ staff and improving local capacity identify where implementation is possible and at the institutional, community and household targets are reset based on local conditions. This levels in water safety planning, and water flexibility has allowed the project to maximize quality testing and monitoring. In addition, the its reach during an active conflict. Bank is building the capacity and provision of training to water user associations to address Addressing gender-related challenges in public health outbreaks. Similarly, in the Jordan FCV settings. Fragility and conflict affects Emergency Health Project for Syrian refugees all individuals who are caught up in these and poor Jordanians, the project is building the situations. It creates vast populations of capacity of the Ministry of Health to create a displaced people and refugees, and exposes more efficient and resilient health system. those affected to extreme and unnecessary violence and sexual exploitation, especially Leveraging partnerships. The Bank cannot in the case of girls and women. This not only operate in isolation in FCV contexts. In addition affects their physical and mental health, but to the UN partners, many INGOs have a field also increases the likelihood of unwanted presence and knowledge about the political pregnancies, sexually transmitted infections, economy and implementation capacity of and complications related to reproductive state actors. The Bank needs to coordinate health. Of the estimated 54.5 million people with humanitarian and development actors, to who needed humanitarian assistance in 2014, ensure that incentives and interventions are about 80 percent were women, children, and aligned and complementary, and consistent young people.41 To better respond to these with building longer term resilience. For challenges, Bank projects in FCV countries example, the DARES (Deliver Accelerated should ensure that essential health services Results Effectively and Sustainably) partnership include reproductive and maternal health developed between the Bank, WHO, UNICEF services, including emergency obstetrics care, and WFP is an attempt to ensure that as well as mental health services. Addressing there is coordination on knowledge and gender-based challenges in FCV settings analytical products, and where applicable, also requires a cross-sectoral approach to joint operational approaches will be prevent sexual exploitation, and provide developed. A similar approach is being comprehensive support to victims of violence. developed for INGOs. For example, the Lebanon Health Resilience Project supports mental health, reproductive Balancing innovation, flexibility, and risk. health and GBV services as part of the FCV settings run the gamut from active conflict package of services being offered to poor to fragile political and institutional contexts, to Lebanese and Syrian refugees through countries emerging from civil war. Operating primary health centers (PHCs). in these environments requires flexible http://www.unocha.org/stateofaid/ 41  160 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations Building knowledge. There is a rich body of Expanding Cross GP approaches. The knowledge within and outside of the Bank solution to many health challenges in FCV that can guide the development of health contexts require cross GP support. For operations. While the ability to rapidly deliver example, Domestic Violence requires a wide services and support institutions in FCV range of sectoral inputs; and the recent contexts is crucial, this must be balanced by Cholera operation in Yemen required inputs improvements in the quality of interventions. from both WASH and Health. The synergies A recent meta-analysis of health interventions within the HD sector need to be exploited in humanitarian/development settings showed further: social protection approaches can that many were not evaluated, and showed be used more extensively to create demand limited impact, and most had no assessment for services, while the ECD agenda provides of their cost effectiveness. Against this an opportunity for health and education to background, HNP’s strategic focus will be on: identify synergistic approaches for securing i) developing cross country analyses of public the potential of the future human capital. FCV interventions in FCV contexts; ii) identifying contexts provide an opportunity to develop innovative service delivery modalities; systems that do not recreate the past, with iii) supporting analyses of financing its inherent weakness, this requires new approaches in FCV. collaborations that bring innovations that can allow countries to develop more effective and efficient systems. FIGURE 32: APPROVALS BY FY (# OF PROJECTS, FCV COUNTRIES) Section 4 161 FIGURE 33: PROJECTS IN FCV COUNTRIES (ACTIVE, BY REGION) B. PIPELINE In FY18, the HNP Global Practice will deliver 11 new operations, and secure funding for 2 operations through the Refugee Windowm and 1 through the Risk Mitigation Window (See Table x). These engagements bring the overall HNP FCV engagement to $2.5B. TABLE 7: HEALTH, NUTRITION, POPULATION GLOBAL PRACTICE FY18 FCV PIPELINE Country Project Name IDA Re/SF Co-Financing Cote d’Ivoire Multisectoral Nutrition and Child Development Project 50.00 10.40 Mozambique Mozambique Primary Health Care Strengthening Program 80.00 25.00 Guinea-Bissau Strengthening Maternal and Child Health Service Delivery 25.00 Zimbabwe Zimbabwe Health Sector Development Support Project III – AF 5.00 Democratic Health System Strengthening for Better Maternal and Child 10.00 Republic of Congo Health Results AF2 South Sudan South Sudan Health Services Support Project 40.00 Myanmar Additional Financing: Essential Health Services Access Project 100.00 10.00 Djibouti Djibouti Nutrition Project 15.00 Yemen Yemen Emergency Health & Nutrition Project Second 200.00 Additional Financing Afghanistan Afghanistan Sehatmandi Project 140.00 460.00 Republic of Congo Health System Strengthening Project - Additional Financing 20.00 162 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations SPOTLIGHT: CENTRAL AFRICAN REPUBLIC The Central African Republic (CAR) has experienced repeated conflict and unstable governments since independence in 1960. Sectarian violence uprooted and displaced about 1.2 million of the country’s population. Nearly two-thirds of the country’s population lives in extreme poverty and about half (2.3 million people) are in urgent need of humanitarian assistance. In the health sector, only 55 percent of health facilities are functional. While 25 percent have a source of energy and only 2 percent have a potable water source.42 The Bank’s engagement on CAR is guided by its new Country Engagement Strategy, which aims to invest $250 million into 11 projects in the country as part of its “Turn Around Program”. This includes support to improve health systems and provide health services to the country’s population. Currently the Bank’s support to CAR for health, nutrition, and population is about $39 million in three related projects, two active and one under preparation. The development objective of the Health System Support Project for Central African Republic is to increase utilization and improve the quality of maternal and child health services in targeted rural areas of the recipient’s territory. Over 1.3 million people have been reached with basic health services under the project, which includes provision of maternal and child care services. The number of health facilities operating daily has reached 103. The project also provides specialized services to women victims of violence, with over 3300 reached between 2014 and 2016. This project has been augmented with additional financing that focuses on improved service delivery through performance based financing, expanding provision of emergency services to IDPs and building capacity of the Ministry of Health and Population C. INNOVATING FOR IMPACT Working in conflict: innovative service delivery mechanisms through contracting The World Bank Group’s engagement is crucial with the private sector in fragile and conflict-affected situations. This In Afghanistan, the World Bank has supported engagement takes a two-pronged approach an innovative public-private model of health focused on (a) helping governments cope system delivery by contracting with NGOs to with immediate pressures on already fragile provide a basic package of health services for institutions, and (b) developing long-term more than a decade. NGOs are paid based on strategies to address deep-seated challenges their ability to delivery key health services in to inclusive growth and prosperity. Source: http://www.worldbank.org/en/country/centralafricanrepublic/overview; https://www.cia.gov/library/publications/the- 42  world-factbook/geos/ct.html Section 4 163 defined contracts with the Ministry of Health. Working in conflict: Leveraging IT This performance based contracting model and third-party monitors has been shown to deliver strong results Under the Yemen Emergency Health with increases in maternal and child health and Nutrition Project (EHNP), the Bank is indicators across the country and as compared supporting third party monitors to verify health to similar countries. The health system gains intervention results. Thus far, data show that as were sustained despite increase in conflict in of January, 2018, (i) around 5.3 million Yemeni some provinces and resulted in an increase in children have been vaccinated against polio capacity of local NGOs. and measles, (ii) 640,665 persoms have been treated for cholera, and 16 million reached Working in conflict: humanitarian support by cholera prevention campaigns; (iii) and, and managing risk 730,00 million have received basic nutrition In South Sudan, additional financing for the services. Importanty, the TPM system has been South Sudan Health Rapid Results Project able to verify if are services are provided, and supports the provision of critical health services collect data on clients’ satisfaction with the and pharmaceutical commodities in the states health services provided. (see Figure 34) of Jonglei and Upper Nile, which are among the most conflict-affected states in the country, Working with the private sector the only source of financing for the delivery The $120 million Lebanon Health Resilience of critical health services in these states since Project services are delivered at the PHC and June 2016. hospital level through a network of private FIGURE 34: YEMEN: THIRD PARTY MONITORING IS A POWERFUL TOOL Sample of 8,430 Respondents Courtesy: UNICEF, Jan 2018 164 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations providers that are contracted by the Ministry organization structures to identify gaps and of Health. The project will expand the network recommend actions for improvement. from 75 to 204 contracted NGO PHC facilities. Under Yemen’s EHNP the Bank is leveraging Innovative financing for Reproductive the capacity of UN partners and Yemeni Maternal Child and Adolescent Health: institutions to fight cholera, strengthen The Global Financing Facility (GFF) service delivery supply chains, and promote The Global Financing Facility in support of transparency in the flow of funds. The every woman and every child pioneers a microplanning for each service, district, country driven model that brings together and governate has been finalized in close multiple sources of financing in a synergistic coordination with the relevant health offices. way to support national priorities. A key For each hospital selected by WHO under element of this model is drawing on the other EHNP there is network of 10-15 health centers sectors that influence health and nutrition and units supported by UNICEF. As of May outcomes, such as education, water and 1st, the disbursement from the Bank under sanitation, and social protection. To date, the EHNP has reached $80 million to both US$342 million of GFF Trust Fund grants UNICEF ($50 million) and WHO ($30million) have been linked to US$2.3 billion IDA representing 40 percent of the funding. and US$100m IBRD, a ratio of 1 to 6.9 with In Djibouti, in addition to the existing Health operations in 16 countries, currently expanding project ($14 million) the Bank is beginning to 26. At present, GFF actively supports discussions with the Government on a new reproductive, maternal, newborn, child and nutrition operation. The team is working with adolescent health in nine FCV countries UNICEF to ensure that the findings of the soon- including Democractic Republic of Congo, to-be completed SMART survey guides the Liberia, Mozambique, Myanmar, Sierra Leone, operation’s design. Afghanistan, Central African Republic, Cote D’Ivoire, and Haiti. Interventions supported The World Bank, UNICEF, WFP and WHO include community nutrition packages, have also recently launched DARES - the procurement of family planning commodities, “Deliver Accelerated Results Effectively and gender based violence training and referral, Sustainably” collaboration. DARES emphasizes and reducing early marriage and childbearing prevention, national capacity building to deliver among adolescents. life-saving services, and effective outbreak response in fragile contexts. The collaboration Leveraging knowledge and partnerships builds on successful partnership experience for impact in Yemen and focuses on 8 high priority Knowledge and capacity building are important countries.43 It aims to improve planning and aspects of mitigating negative impacts of coordination, have faster and more flexible, fragility and conflict. The Bank’s Lebanon adaptable and stronger response through Health Resilience Project includes capacity leveraging the relative strengths and resources building and strengthening health information of each organization at the country level. The management systems. This will include a partnership is already at work in Yemen and comprehensive assessment of hospitals Libya where the Bank is collaborating with focusing on accuracy of hospital case mix; use partner agencies on needs and mid-term of hospitalization data in medical auditing; assessments of projects. The Bank is also and development of performance indicators collaborating closely with UNICEF and WHO in incorporating actual patient outcomes, Djibouti to ensure cohesive dialogue with the resource allocation decisions, and institutional/ Ministry of Health on a new nutrition project. CAR, Djibouti, DRC, Haiti, Libya, Syria, Somalia, Yemen 43  Section 4 165 SOCIAL PROTECTION AND JOBS GLOBAL PRACTICE A. STRATEGIC APPROACH nets to address vulnerabilities with a growing emphasis on targeting households rather than The Social Protection and Jobs (SPJ) just communities and by offering a variety of Global Practice engagement in FCV services, including cash transfers, cash for work dates to the ‘90s. With a first generation opportunities, microfinance, and nutritional and of operations centered on social funds, school feeding programs. This transition was SPJ had a foundational role in post-conflict grounded in the realization that rehabilitation reconstruction in fragile countries including of infrastructure, while important and necessary in the Balkans, throughout Africa, in parts of during crises, was not a sufficient response the Middle East, and in Central America. By and that conflict and fragility required a more leveraging Community Driven Development targeted and context-specific response based (CDD) approaches, SPJ adapted and integrated on building appropriate capacities that could preexisting arrangements and institutions into move to scale during crises. Vulnerability a crisis response platform and in support of aspects related to poverty, gender, age, refugees and displaced populations. That’s ethnicity, or malnutrition were also included been the case in Madagascar and Uganda in the analytical work, the policy dialogue, where existing social funds have been used and the operational approach. In Togo, to respond to new vulnerabilities created by Yemen, and Sierra Leone, existing projects social and political unrest. In other cases, such underwent this transition considerably as Liberia and Kosovo, the Bank’s involvement enriching their approaches to safety was instrumental in creating new institutions nets and emergency response. to support post-conflict reconstruction of small infrastructure in key sectors such as schools, Preparedness and effective response to health centers, community centers and roads. crises are now shaping the SPJ agenda Such operations have been accompanied by a in FCV. In the past decade, the world has strong policy focus on government ownership grappled with an increased number and and local community involvement, in support intensity of crises and shocks related to food of reconciliation, coexistence and stabilization. and fuel prices, financial volatility, conflict, In addition, social funds supported by SPJ forced displacement, climate change, natural have helped transfer knowledge to–and disasters, and pandemics such as Ebola. FCV build institutional capacity of–central and countries are more exposed than others to local governments to then take on these such shocks. For instance, 80 percent of people responsibilities and link to Disaster Risk affected by natural disasters already live in Mitigation (DRM) responses. FCV. Projections for the next 20 years, estimate that between 50 to 64 percent of the global A second generation of reforms and poor will reside in such countries.44 45 Hence, projects has expanded SPJ to safety net preparedness and capacity to respond to operations and systems. During a second crises, effectively and flexibly become central wave of projects, the Bank promoted safety to the current SPJ strategic approach in FCV countries. Overseas Development Institute (2013): “When disasters and conflicts collide: Improving links between disaster resilience 44  and conflict prevention.” ODI; London. World Bank (2011): World Bank Development Report 2011. World Bank Group; Washington, DC. 45  166 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations SPJ GP has developed a new framework Partnerships and multi-sectorality are a and strategic approach on safety nets and cornerstone of current SPJ work in FCV on jobs. Adaptive Social Protection (ASP) countries. It is in the realization that no actor provides a flexible approach to building safety alone can effectively address the complexities nets that centers on identification, targeting, and the intersectoral nature of crises in FCV and registration of poor and vulnerable countries, that the SPJ GP has forged robust households; a dedicated early warning system partnerships with other actors in virtually all within the GP to detect crisis risks and respond FCV countries. In Yemen, where the Bank rapidly; and flexibility in project design and cannot enter a financing agreement with implementation. This allows social safety nets the government and has no presence on to expand quickly in response to crises and the ground, the SPJ GP has nonetheless shocks. ASP approaches are widely adopted established strong partnership with the UN in many countries in Sub-Saharan Africa, the to deliver IDA-funded emergency operations, Middle East as well as in Southern Africa. while arranging to engage national SP Similarly, SPJ has developed a new framework institutions to support their resilience and on jobs, given their contribution to poverty capacity. In Lebanon, SPJ is joining the reduction, productivity and economic growth, Transport and Digital Development GP in a and their effect on social cohesion and Program for Results project to support jobs reducing the risk of violence. The new Strategic with targeted actions across sectors.46 In Mali, Framework for Jobs in Fragile and Conflict a partnership between SPJ and the UN aims Situations highlights the following principles: i) to support jobs for youth in active conflict the need for an integrated approach that keeps areas, leveraging third-party monitoring and all economic actors involved; ii) an emphasis promoting both economic opportunities on the jobs impact of macro-fiscal policy, and stability. In Madagascar, to strengthen regulation, and infrastructure investment; iii) households’ resilience, SPJ is supporting the design of short-term recovery support a multi-sectoral approach to address with an eye on longer-term goals, and iv) the simultaneously livelihood development, importance of early engagement to re-establish nutrition, education and early childhood domestic markets. As part of such an approach, development. the SPJ GP support to jobs diagnostics and strategies takes an integrated view of the SPJ interventions support peace building labor market, macro-economic conditions, efforts. By delivering urgently needed the business environment, labor demand and income protection and critical services, SPJ supply, and workforce skills. Strategies are engagement in contexts such as Yemen, under preparation for Iraq, West Bank and Iraq, Lebanon or CAR helps nurture hope Gaza, Nepal and Tajikistan. for peace. Political neutrality in targeting and bringing IDPs/refugees, host communities and vulnerable groups together in implementation helps enhance social cohesion, peaceful “Lebanon Jobs Program” (P163576) 46  Section 4 167 coexistence and collective development. Re-thinking social protection and jobs. Moreover, the transparency and absence of Within such context, re-thinking support to mediation of safety nets (e.g. cash transfers) livelihoods, access to basic services and to help establish a direct link between the economic opportunities of FD people and authorities and the people and contributes to host communities alike is a key development reinstating a sense of trust in society. issue. Inevitably, safety net systems and jobs strategies must face new operational Humanitarian Aid and Forced displacement issues such as targeting, data and benefits Moving out of humanitarian assistance management in highly volatile/mobile contexts, towards long-term solutions. While in theory or the benefits’ incentive rationale between humanitarian assistance should be temporary, FD integration into host communities and/or in many FCV countries it represents the norm incentive to relocate. Moreover, the long term instead of the exception. In the case of forced financial sustainability of SPJ measures requires displacement (FD), 75% of the estimated 65 new collaborations to maximize the impact of million people currently in a situation of FD are available resources and entice the participation in protracted displacement and expected to of the private sector. remain so for some time. Their presence puts A diagnostic effort leading to partnerships pressure on access to natural resources, land, and policies. The challenge that FD poses to basic services, and income opportunities, and existent or nascent safety net systems and job can become a security challenge with deep strategies requires a sequenced approach by political, social and cultural implications. It is governments and development partners based in such contexts that humanitarian assistance on a thorough diagnostic of the needs of FD may substitute for key government functions populations, their plans to relocate/return, and and may put at risk the development of state their interaction with local communities. Part of capacities, which are key for the establishment the diagnostic is on how safety net systems and of safety nets and effective job policies. active labor policies can help respond to such Evidence from FCV show that humanitarian needs, given their capacity, financial situation, assistance, national safety nets, and job and overall performance. Policy options strategies can complement and mutually- are part of the diagnostic and lead to the reinforce each other and can strengthen state establishment of partnerships among various capacity for crisis response and DRM. governmental agencies and ministries, local development stakeholders, and international technical and financial partners. 168 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations B. PIPELINE The SPJ operational volume in FCV countries currently includes 29 projects with $1.2 billion in commitments. In addition, there are 11 projects worth more than $900 million in the pipeline. TABLE 8 Project Name Country Commitments -$M IDA FY 2018 Emergency Crisis Response Project AF Yemen 200.00 Safety Net and Skills Development AF South Sudan 30.00 Social Protection Project Guinea-Bissau 15.00 Promoting Social Youth Employment Project Comoros 3.00 Social Safety Nets AF Sierra Leone 20.00 IBRD FY 2018 Emergency Social Stabilization Project Iraq 200.00 Emergency Social Fund for Development Iraq 300.00 TF FY 2018 Social Protection Enhancement Project West Bank 15.00 and Gaza IDA FY 2019 International Labor Market and Domestic Labor Market Insertion (co-financing) Afghanistan 5.00 Productive Inclusion Project Congo - DRC 100.00 Refugees and communities Chad 40.00 C. INNOVATING FOR IMPACT and hosting communities, and relying on a specialized UN agency (UNOPS) to CAR: An innovative example comes from implement the work program under the the recent engagement of the World Bank in commitment to progressively transfer all Central African Republic to respond to the competencies to ministerial authorities as forced displacement emergency. Because of a they strengthen their capacity. long-standing conflict and an unstable political and security situation, roughly one fourth of Fiji: In response to cyclone Winston, the the CAR population has been displaced. The government tapped both its social protection Board has approved a two–GP project (GSURR programs and international humanitarian and SPJ) which has innovative design features assistance, the latter coordinated by the and implementation approaches, including international Pacific Humanitarian Team. The the provision of both public services and country presents a compelling experience in transfers to individual households affected how to appropriately sequence emergency by displacement (15,000 households), the humanitarian assistance and social protection, concurrent and complementary targeting including through different institutions (disaster approaches to forcibly displaced populations authority and social welfare ministry). Four Section 4 169 weeks into the disaster, the government had skills training tailored specifically for Lebanon. disbursed $9.4 million through its national The curriculum design and content reflect the social protection schemes; following these country’s diverse religious factions. A robust provisions, the humanitarian community impact evaluation, shows that NVSP had a delivered a top-up voucher payment to positive impact on social cohesion in Lebanon. government social assistance recipients amounting to a total of $2.1 million. Liberia is an example of institutional collaboration to respond to a major health In Iraq, the ongoing SPJ program includes pandemic (Ebola). In such a context, the technical assistance, reform support through WBG financed projects implemented by DPF (FY17), and two emergency operations. humanitarian actors to augment government The latter includes the Iraq Emergency Social social protection systems, including leveraging Stabilization and Resilience Project (ESSRP; logistics for in-kind and cash transfers $200m IBRD loan) delivered in record time to targeted affected populations. The after the end of the battle of Mosul. The ESSRP Government, working with the World Bank will provide cash for work to returning and and WFP, agreed to use $5.6 million of the existing populations in the liberated areas, as Bank’s Ebola Emergency Response Project for well as other support to address the impact of the provision of emergencies commodities. the conflict on the population with emphasis on This helped reach 120,000 people who were: women and children. patients in hospitals receiving medical care, contact cases in quarantine/observation, and War-torn Yemen shows that the elements communities with widespread and intense of the social protection system that are still Ebola Virus Disease (EVD) transmission with active (e.g., Social Welfare Fund, Social Fund limited food availability. for Development, etc.) benefit from nuanced coordination between humanitarian and social Madagascar: The Social Safety Net Drought protection assistance. UN agencies such Response (FIAVOTA) program was part of the as UNICEF are delivering social protection WBG interventions following the government’s projects assisted by the WBG. Also, the declaration of a humanitarian emergency design labor-intensive activities (implemented brought on by severe drought (September by SFD) are connected to and informed by 2016). The program showed several innovative humanitarian efforts. e.g., WFP’s food design features that dove-tailed with security data is used for targeting by humanitarian response. These included, for WBG-funded operations. example, the provision of emergency food by the humanitarian community and that of Lebanon: The National Poverty Targeting cash by the WBG, including in areas served by Program (NPTP) and National Volunteer functioning markets. Also, cash transfers were Services Project (NVSP) serve as examples provided free of conditionalities and delivered of adaptive and innovative Social Safety through mobile banking arrangements where Nets (SSN) with emphasis on integrated infrastructure was accessible. approaches (including social service delivery complementing cash transfers). NVSP provides Nigeria: The Youth Employment and Social Syrian refugee youth aged 15-29 with civic Support Operation (YESSO) is part of a engagement opportunities, employability broad approach to social protection made training, and psycho-social support. The of various projects aiming at establishing a first phase of NVSP (2013-2016), benefited robust safety net system in the country. The 6,500 youth aged 15-24 and involved close YESSO increases access of the poor to youth to 150 NGOs, universities, schools and employment opportunity and social services. municipalities. The project also supported soft The program was recently extended in all six 170 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations North Eastern States affected by Boko Haram and implementation conditions. Plans are violence and insurgency, and includes a new now underway to scale up the public works targeted cash transfer component focusing on component, and options for engaging with UN IDPs and on the poor and vulnerable who are agencies are being explored. registered in the Unified Register compiled at state level. To coordinate such assistance and West Bank and Gaza offers a ‘good practice’ other national interventions, the government example of how various official institutions set up Humanitarian Response Teams, with have devised a common registry and targeting membership consisting of officials from across framework and organized different safety net relevant government ministries and agencies as interventions based on them. Actors like the well as other key stakeholders at state level. WBG, UNHCR, WFP, ECHO and others use a common programmatic framework to support South Sudan: The WBG is implementing a the Palestinian Authority in implementing $21 million IDA credit for the Safety Net and schemes in cash, vouchers and in-kind. These Skills Development Project (SNSDP). South reach, in total, nearly 480,000 people. Such Sudan is currently facing a humanitarian systems were used, for example, to ramp-up crisis, with over 50 percent (6 million) of the emergency humanitarian assistance by other population facing severe food insecurity, and actors like UNICEF, including for the delivery of nearly 35 percent either internally displaced schooling, water and sanitation items to about (2 million) or refugees (1.8 million). The 100,000 people. Safety Net and Skills Development Project is addressing emerging vulnerabilities and deprivations caused by the conflict by focusing primarily on safety nets assistance to provide temporary income to the poorest and the most vulnerable, including IDPs. The Project has already generated 240,000 total person work days under challenging security, political Section 4 171 AGRICULTURE GLOBAL PRACTICE A. STRATEGIC APPROACH Nutritious food and agriculture is needed in existing and potential FCV environments— Each day 795 million people go to bed both to meet urgent humanitarian needs hungry. Estimates suggest that some 40-45 and to support the peace-building process. percent more food will need to be produced Sharing food, creating livelihoods, and by 2030 to ensure global food security – in the promoting entrepreneurship is key for context of increasingly stressed land and water preventing conflicts, poverty reduction and resources, and with the threat of reduced crop shared prosperity. Conflicts and crises are yields from climate change. Eighty percent of making more people food insecure as the the poor worldwide reside in rural areas and world is experiencing its largest refugee most rely on agriculture for their livelihoods. crises and numerous conflicts. As many as Improving the performance of the agriculture 65.6 million people worldwide were forcibly sector for better and more sustainable displaced at the end of 2016, according to incomes, food security and nutrition remains UNHCR, and meeting their daily food and central to the Bank Group’s twin goals of nutrition needs is a major challenge. On top of eradicating extreme poverty and boosting this, four countries are experiencing famine due shared prosperity by 2030, and to achieving to fragility and conflict. many of the Sustainable Development Goals. To achieve these goals, the world needs a food The food and agriculture sector is typically system that can safely feed every person, every the first sector to recover from crisis, day, everywhere; that can increase the real because the factors of production it uses incomes of the poorest people; and that can can be more rapidly mobilized. Agriculture better steward the world’s natural resources. is also a key input to recovery in other sectors There is an urgent need for a food system that and a first point of entry for mitigating the is more resilient and that shifts from being impact of conflict on food insecurity, poverty, a major contributor to climate change to employment and economic growth. This becoming part of the solution. To this end, the happens through producing and selling food, Agriculture GP lending and analytical program generating rural incomes and employment, is giving emphasis to: rebuilding household-level food security, and rebuilding social cohesion and institutions • Climate-smart agriculture; from the bottom up. Agriculture is key to stabilization and ultimately to peacebuilding.  ood quality and nutrition- •F sensitive agriculture; Building resilient agricultural systems in fragile and conflict-affected systems • Agribusiness/inclusive value chains; and requires both the short- and long term • Jobs/livelihoods. to be considered in planning, bridging the humanitarian-development divide. Lack of opportunities and unmet aspirations in rural areas breed fragility, such as rural unemployment, rural-urban migration, job 172 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations 4.3 SUSTAINABLE DEVELOPMENT competition and price inflation. Regions where The Agriculture GP’s IBRD and IDA portfolio a large portion of employment and livelihoods share for FCV countries has been on average depend on agriculture are particularly exposed 7.9 percent during FY06 - FY17 with a rising to these types of risks. trend reaching 13.9 percent in FY18 (see Figure 34). The overall amount for countries on the Harmonized List of Fragile Situations increased B. PIPELINE from $154 million in FY06 to $816 million in FY18. There are also grants being provided, for The Agriculture GP has invested more than example to address famine in Yemen, which are $3.4 billion since 2006 across core FCV- not included in Figure 34 below. affected countries. The needs for nutritious food, jobs, and livelihoods are large and increasing in FCV countries. FIGURE 35: IBRD/IDA TOTAL ANNUAL COMMITMENTS TO AGRICULTURE SECTOR, FY06-FY18 Section 4 173 More than 600,000 farmers in an FCV In view of a growing insurgency and situation benefited from Agriculture GP uncertainty in Afghanistan, the Agriculture projects for agriculture assets and services GP has been promoting cross-GP in the last three years, including 144,000 collaboration to achieve sustainable women (see Table 8). During FY15-17, nearly outcomes, and tailoring its interventions 93,000 female farmers adopted improved to the volatile circumstances. Yet, while the agricultural technologies out of approximately ultimate goals of WBG agriculture projects 134,000 total in FCV situations. Finally, in the in Afghanistan are to achieve poverty same period more than 148,000 hectares were reduction and shared prosperity in a fragile provided with irrigation services. and conflict setting, they are also designed and implemented to achieve these goals by In East Asia and the Pacific, fragile states improving the livelihoods of farmers and the are concentrated in the Pacific region, rural poor. where half of the twelve member states are officially classified as fragile situations The FCV prevention agenda has been – Kiribati, the Marshall Islands, the Federated translated across the agriculture portfolio States of Micronesia, Tuvalu and the Solomon in Central Africa by essentially leveraging Islands (with a combined population of around knowledge and partnerships for impact. 875,000), as well as Papua New Guinea (with a Some examples are the engagement with the population of 8.1 million). In addition, Timor- FCV Group, Global Facility for Disaster Risk Leste, despite having graduated from the Reduction (GFDRR) Just-in-Time rapid response FCS list in FY16, remains a young democracy window, and Gender Innovation Lab in the with very weak institutions that could still be DRC. Since 2015, during project preparation, considered as a fragile situation. studies have been undertaken on “drivers of conflict” to inform project design and The Agriculture GP’s work on these fragile target interventions to prevent conflict, and states had focused on those with the largest promote stability and recovery, such as in the population at risk of chronic food insecurity Regional Great Lakes Integrated Agriculture (Timor-Leste) or with the greatest potential Development Project. The studies also assist to lift rural households out of poverty in the identification and management of (Papua New Guinea). This will continue in risks. These studies have helped to target the near future. There is unlikely to be a shift beneficiaries (women & youth), avoid elite towards further engagement in the smaller FCS capture, test assumptions and pilot innovative states, as they have not identified agriculture interventions. Initially, one way to manage as a priority area for investment. The pipeline is risks during project implementation in fragile likely to include a second investment in Papua contexts was to engage with non-traditional New Guinea, but the value and scope of this stakeholders. More recently, projects have investment is yet to be determined. also been increasingly working with the private sector (ICT, agribusiness, and private financial institutions). TABLE 9: AGRICULTURE SECTOR PROJECTS' RESULTS, FY15-FY17 Total FCV Farmers reached with agricultural assets and services 20,666,593 601,092 Female farmers reached with agricultural assets and services 2,102,006 144,132 Farmers adopting improved agricultural technology 4,873,067 134,363 Female farmers adopting improved agricultural technology 277,000 92,878 Area provided with irrigation services 3,546,534 148,405 174 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations C. INNOVATING FOR IMPACT to return home after being forced to flee by conflict. Project investments will be selected For the first time in 70 years, famine is and implemented through a community- looming in four countries simultaneously – based and participatory approach and will northeast Nigeria, South Sudan, Somalia, help affected communities to reclaim their and Yemen. In each country, the food crisis livelihoods by reinforcing their resilience. The relates to conflict. Therefore, improving food project is funded by the Global Agriculture security and producing enough safe, nutritious Food Security Program Grant of $36 million. food to meet demand is a key focus of the The project will be implemented by the Agriculture GP’s work in the FCV country Food and Agriculture Organization (FAO) context, notably through projects in Yemen and representation in Yemen in collaboration with South Sudan. The latest project in Yemen, and the Yemen Social Fund for Development (SFD) work to develop “frontier agriculture,” are two as the FAO main local implementation partner. good examples of the Agriculture GP’s more innovative work. Finally, the GP is now running Frontier Agriculture can serve to increase an operational Agriculture Observatory, the food security, livelihood, jobs and skills, so-called Ag Observatory to help prevent food and social cohesion and social capital in crises before they occur. FCV contexts (Verner et al 2017). Water and arable land are getting scarcer and more Republic of Yemen: Smallholder Agricultural unreliable due to climate change in many of Production Restoration and Enhancement our client countries, potentially making them Project (SAPREP) - approved July 2017 - is more conflict prone. a critical element of the World Bank famine response in Yemen. The project targets poor The Agriculture Observatory proactively and food insecure households within the track shocks to agricultural systems seven most food insecure governorates. globally. The Ag Observatory uses real time Approximately 630,000 Yemenis will directly and high resolution (9kmx9km), temperature, benefit from the project investments and and precipitation observations derived from services, of which 30 percent are women - one ground stations, satellite platforms and artificial of the most at-risk segments of the population. intelligence to generate 1.5 million virtual The project will provide investments to increase hydro-meteorological stations across the agricultural production and value-added of planetary terrestrial surface and allows for the agricultural products, and improve livelihoods generation of current rainfall and temperature and nutrition. This will be achieved by restoring anomalies relative to a ten-year baseline. and enhancing access to agriculture inputs, When coupled with a cropping calendar and providing investments to improve nutritional local crop models, the Ag Observatory can value and upgrade and diversify agriculture obtain projections of likely harvest yields 3-5 and livestock production and marketing. months in advance of harvests depending on The project will also assist crop and livestock crops used. This provides robust, early-warning producers who have lost productive assets capacity to avoid or at least mitigate because of the conflict and displacement with agriculture and food shocks that are often fast disbursing interventions that would help one of the leading contributors to FCV them rebuild their productive capacity and re- and eventual disasters including famines engage in agricultural production. The project and forced displacement. will improve food security and livelihoods through provision of farm restoration support The majority of refugees and many hosts packages and income generating interventions are food insecure and poor in MENA. For for about 35,000 of the most vulnerable and example, in Jordan, 88 percent of refugee conflict-affected, including rural women, households are poor or vulnerable to poverty internally displaced people, and those trying and approximately half have reported reducing Section 4 175 the quantity and quality of food intake and the simplest system can start or supplement skipping meals. In Lebanon, only 7 percent existing food and fodder production, if any. of refugees are living with acceptable levels This solution can be implemented in a place of food security and 93 are nutritious-food that previously had no or very limited food insecure. Moreover, 71 percent of the production; it can also restart agriculture refugees are living in poverty. Most refugees that was shut down by conflict. This will be in the region have a background in food and introduced as pilots in MENA in FY18. agriculture. This report shows that frontier agriculture, which comprises climate-smart and The WBG current engagement in Afghanistan water-saving agriculture technologies, such as is determined by the Country Partnership hydroponics, can contribute to improve well- Framework (CPF) 2017-2020, which is closely being, including nutritional status for farmers aligned with the government’s Afghanistan and people that are less integrated into the National Peace and Development Framework labor market. This includes women, youth, (ANPDF). Supported under the CPF, agricultural and those who are forcibly displaced.47 productivity is seen as a key driver to growth in the country. The promotion of a comprehensive One way of increasing food production in agriculture program – that supports improved such contexts is through frontier agriculture, access to key inputs and agricultural extension in which food production is moved closer services; enhanced agribusiness opportunities; to markets. Hydroponics and Vertical Farms improved land/water management, including are two examples. Hydroponics is a climate- an expanded area under irrigation; and, smart, innovative, and effective technology enterprise development – can support that produces more nutritious food with less economic growth and the creation of water (at least 80 percent) and no arable land. more, sustainable, and inclusive job Hydroponic systems are easy to operate and opportunities for Afghans. can be installed for small-scale use in homes and communities, as well as large scale use The WBG Strategy is organized under three in commercial farms. Given the adaptability pillars: (i) building strong and accountable and flexibility of the technology to most institutions; (ii) supporting inclusive growth; environments, and the outputs including the and (iii) expanding and deepening social provision of nutritious food and marketable inclusion. The Agriculture Global Practice produce, these technologies are already being priorities and approach in Afghanistan have employed in some of the most challenging thus been aligned primarily under pillar II, areas in MENA, such as hydroponics and “supporting inclusive growth”. A look at the aquaponics in the Palestinian Territories (see trends and profile of poverty in Afghanistan Verner et al 2017). The selection of the type of shows that about 70 percent of the population hydroponic system depends on the access to lives and works in rural areas, mostly on farms, inputs and the level of creativity to produce, and derive their livelihood from agriculture. reuse or upcycle inputs. Since the technology Therefore, agriculture is potentially the most is flexible and adaptable to local conditions, important driver of inclusive growth and job creation in Afghanistan. See Verner et al 2017, Frontier Agriculture for improving refugee livelihoods: unleashing climate-smart & water-saving agriculture 47  technologies in MENA, The World Bank. 176 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations FIGURE 36: SPATIAL PATTERN OF INCOME AND EMPLOYMENT IN AGRICULTURE, 2013–14 Source: Leao et al. 2017. Jobs from Agriculture in Afghanistan. Section 4 177 178 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations FOR RURAL AFGHAN WOMEN, AGRICULTURE HOLDS THE POTENTIAL FOR BETTER JOBS; AN EXAMPLE FROM AFGHANISTAN Revitalizing the agriculture sector will play an important role in poverty reduction and sustained growth, primarily through job creation, improved productivity, and inclusiveness – with special attention to technical training and financial support to rural women as recognized by the Government of the Islamic Republic of Afghanistan (GoIRA). Examples include the Afghanistan Rural Enterprise Development Program (AREDP) and the National Horticulture and Livestock Program (NHLP), as well as the upcoming Women’s Economic Empowerment – National Priority Program (WEE-NPP). Rural women continue to be the cornerstone of agriculture and food security in Afghanistan, and hold the potential to lift their households as well as their communities out of poverty. Although women’s participation rate in the labor market has gone up to 29 percent, many female workers in agriculture remain unpaid, participating in the economic activities of their households (see Leao et al. 2017). Subject to enduring security concerns, the WBG’s work in the country is not easy, but with the support of the GoIRA it remains vital to improving women’s unemployment rates, as well as market access conditions, access to technology, secure land tenure systems, and better access to credit and agricultural inputs, to improve livelihoods for female farmers and their families. Revitalizing the agriculture sector in  ccess to credit by supporting the •A Afghanistan however, requires addressing a sustainable development of agro/rural- number of key policy and investment priorities financing structures; in the country. The Agriculture GP has been working with the Ministry of Agriculture,  groindustry and rural MSMEs by •A Irrigation and Livestock (MAIL) and the Ministry fostering private investment, enhancing of Rehabilitation and Rural Development entrepreneurial skills, and improved farm (MRRD) to address the following: to market connectivity. • Regulation of inputs by supporting Aligned with the country’s CPF and the WBG’s on improved certification, regulation, Strategy, the Agriculture GP engagement in and enforcement of agricultural Afghanistan seeks to contribute to improved phytosanitary measures; productivity and resilience in the agricultural sector. At a critical time, when the country • Extension services by revising and is faced with a range of challenges – from updating the extension services delivery growing insecurity to stagnating growth and model, opening it up to the private rising levels of poverty – the Agriculture GP has sector and NGOs, and supporting the been embracing the FCV agenda and focusing government to focusing on an enabling in creating better livelihood opportunities in and regulatory role; a country that has been in almost constant conflict since 1979. Water by supporting the rehabilitation of • existing and new irrigation schemes, and better on-farm water management; Section 4 179 ENERGY AND EXTRACTIVES GLOBAL PRACTICE A. STRATEGIC APPROACH Conflict and protracted crises can directly impact utility services. In these contexts, Energy infrastructure, institutions and alternative providers such as privately owned, resources are frequently disrupted in FCV diesel powered generators, often emerge settings. Power systems and fuel supply to fill the service vacuum. Still, their services chains can be targets of violence, causing are often more expensive. Consideration of prolonged outages that can have disastrous decentralized energy solutions like micro solar, impacts on critical public services that rely on pay-as-you-go solar home systems, multi- electricity, including hospitals, food supply, technology (wind, hydro, solar, biomass) mini- water supply and treatment stations and grids, and mobile solar farms are viable options municipal services (as experienced in parts of to economically deliver fast, resilient, and in Yemen and Syria, or West Bank and Gaza). efficient energy access. In addition, the World Conflict impacts on utility staff or financial flows Bank has extensive experience in rebuilding can constrain maintenance and rehabilitation, energy sector infrastructure post-conflict (e.g., leaving systems highly prone to failure. An most recently in West Bank/Gaza, Iraq, Yemen, influx of displaced people can over-stress Liberia and Sierra Leone). Increasingly, the natural resources such as wood-fuel for cooking World Bank is also engaging during conflicts and heating, leading to hardship for refugees and in building resilience of energy sectors to and host community alike, as well as local FCV shocks. deforestation (as witnessed in Somalia or DRC). FCV interventions are becoming a core Energy and Extractives Global Practice element of the World Bank’s energy sector (EEX) interventions to address FCV portfolio. As per the October 2016 WBG conditions fall into three broad categories, scorecard, the World Bank provided new or depending on the time of intervention. They improved electricity connections to a total of can either focus on i) enhancing energy sector 2.28 million people living in FCS countries resilience, including by promoting energy between FY14 and FY16. This represents 6% of security and energy poverty alleviation through WB energy access results globally considering long-term development operations, and a total of $37.77 million of new and improved contributions to state-formation, and to peace- connections for the entire WB energy portfolio building processes; ii) they can be formulated over the same period. It also compares to a as an immediate crisis response (in-conflict total number of 2.32 million new and improved support or responses to refugee crises in connections in FCS countries for the previous neighboring countries); or iii) they can focus on scorecard period (i.e. October 2015 scorecard reconstruction of energy sector infrastructure. covering FY13-15). 180 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations Our analytical and advisory services in FCV B. PIPELINE countries includes considerable collaboration with other GPs or WBG entities, for example: In the 5-year period, from FY13-17, the WBG committed more than $2bn through • Health, Education (KOSAP 37 energy and extractives projects in FCS Geospatial planning) countries. Overall, an increasing trend is seen in terms of engagement in FCS countries, with Finance & Markets (e.g. DRC financing • FY17 the strongest year over the 5-year period. modalities for private sector participation) In the 5-year period, the largest commitments have been to Myanmar ($540m), Côte d’Ivoire Social (e.g. CASA-1000 Social Inclusion, • ($385m), Democratic Republic of Congo Afghanistan Energy Study) ($218m), Afghanistan, ($164m) and Burundi • Water, Transport & MFM (Yemen ($100). Investments in these countries have Reconstruction & Recovery) mostly focused on increasing energy access by expanding and strengthening the • IFC (e.g. geospatial, Scaling Solar, Lighting power sector in terms of generation, Africa, and mini-grids); a strong example transmission and distribution. of collaboration with IFC has been in Myanmar (see Section 2). In the lending pipeline for FY18 and FY19, EEX expects to commit about $1.2bn In the MENA Region for example, the GP has through 24 projects in FCS countries. The a unique analytical piece working together largest projects are expected to be in Iraq, with Water, and the Global Practice for Social, Myanmar, Papua New Guinea, Democratic Urban, Rural, and Resilience (GSURR) on Republic of Congo, Mozambique and building energy in the Iraqi energy sector which Madagascar. These projects will mostly focus is looking at the ability of Iraqi cities to recover on improving and expanding the power sector. rapidly from disruptions related to systemic shocks. Given the exposure and vulnerability In the 3-year period, from FY15-17, 53 to natural and man-made hazards and other pieces of analytical work (ASA) were shocks, the provision and restoration of completed in FCS countries. Our largest services is essential. Global experience in the engagement was in Iraq where the Bank operations of dam safety will be of importance delivered 10 ASAs, followed by Myanmar and in Iraqi where the per capita dam capacity is Haiti with 5 ASAs each. Our analytical work in far above the MENA average. This Advisory these countries has mostly focused on capacity Services and Analytics (ASA) product aims to building for the extractives industry and power highlight to the international development sector reforms. community that with the challenge of reconstruction, comes the opportunity for Disaster Risk Management through integrated resilient recovery and reconstruction planning that will drive longer-term resilient development. Section 4 181 FIGURE 37: LENDING 700 605 633 600 499 500 Commitment ($ Million) 400 300 220 200 67 100 0 2013 2014 2015 2016 2017 Fiscal Year AFR EAP ECA LCR MNA MNA FIGURE 38: LENDING PIPELINE 182 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations FIGURE 39: ANALYTICAL WORK 23 25 20 Commitment ($ Million) 17 15 13 10 5 0 2015 2016 2017 Fiscal Year AFR EAP ECA LCR MNA MNA In the 3-year reporting period, from FY15- improving social cohesion between 17, Bank projects contributed significantly refugees and host communities; increased to the energy sector in FCS countries. citizen voice and role in budget decision In terms of energy generation, World Bank making; and greater demand for social projects installed about 27MW of conventional accountability. The operational approach and renewable power projects. Additionally, will be Community Driven Development through efficiency improvements in the energy (CDD) oriented and will involve: (i) building sector, about 66GWh of energy was saved. grassroots institutions, (ii) ensuring voice of all communities including refugees Operational Support in decision making, (iii) strengthening Regional Operation on Development • decentralized government administrative Response to Displacement in the Horn functions, as well as (iv) investing in public of Africa (preparation). The Objective service delivery and social mobilization to is to improve access to social services, enhance the social cohesion among the expand economic opportunities and beneficiary communities. Primary project enhance environmental management for beneficiaries will be the host communities host and forcibly displaced households in in the refugee hosting areas who have the targeted areas of Djibouti, Ethiopia experienced displacement impacts and the and Uganda. The proposed regional secondary project beneficiaries will be the project will embed essential features of displaced persons (refugees and returnees). ensuring citizen participation in prioritizing The project will support communities to developmental needs including socio- prioritize investments with specific focus on economic infrastructure and livelihoods women, female-headed households and opportunities to improve self-reliance youth, who are disproportionately affected of refugees and host communities; by displacement. Section 4 183 Cross-border projects, such as CASA- • crisis—was approved in December 2016 1000, offer opportunities to build and supports fiscal and policy reform bridges at the institutional level, and to programs undertaken by the Government promote inclusion at the local level. First, of Jordan in the energy and water sectors recognizing that causes of cross border to address the challenge of pursuing its conflict are multiple and complex, and reform agenda while also accommodating the Bank cannot be expected to fully the influx of Syrian refugees. An estimated solve them, however, it can contribute. 1.3 million Syrian refugees are currently In the case of CASA 1000, an important residing in Jordan – equivalent to over 20 breakthrough came when Bank together percent of Jordan’s pre-crisis population with the Pakistan Ministry of Energy – placing tremendous pressures on public presented this win-win opportunity to the services and infrastructure. Energy and security and other elements of the Pakistani water service delivery – already under establishment. It also opened a window great strain before the crisis – has been for an alternative means of engaging with severely affected, especially in the northern neighbors, aside from conflict, in areas governorates. The rapid growth of the such as: trade, airline services (both residential population is putting additional already expanded even as CASA still pressure on the electricity and water in pre-construction phase). sectors, adding to long-standing structural challenges relating to supply security, Mitigate the Impact of Syrian • financial sustainability and efficiency. To Displacement on Jordan – closed support the Government in its response (amount: $150 million. Funding source: to the refugee crisis, the loan is providing IBRD). After the smaller interventions urgently needed budgetary support and implemented by NGOs and UN, this incentives to reinforce the fiscal and policy was the first large-scale, government- underpinnings of these two key sectors. implemented Bank lending operation responding to the significant costs incurred raq Emergency Operation for •I by a host government. As the influx of Development – ongoing (amount: $300 Syrian displaced began to show its impact million. Funding source: IBRD). The project on the Government of Jordan’s public provides the Government of Iraq financing finances, the Bank prepared a $150M loan of rapid interventions for rehabilitation and to offset expenditures incurred (i) in the repair projects in selected cities liberated health sector (vaccines and medications from control of ISIS across all sectors and healthcare for uninsured Jordanians including municipal solid waste, water crowded out in the public health facilities); and sanitation networks, transmission and and (ii) due to Syrians benefitting from electricity distribution networks ($75 million non-exclusionary subsidies on bread component), and roads and bridges. and household use of liquefied petroleum gas (LPG). Analytic & Technical Activities  conomic and Social Impact •E Jordan Energy and Water Development • Assessments (ESIAs); Damage and Policy Loan – ongoing (amount: $250m). Needs Assessments (DNAs): ESIAs are This operation—the first DPL supported assessments that aim to provide a picture by the Concessional Financing Facility of the impact of a conflict or a crisis set up to support Lebanon and Jordan by studying its effect on the country’s in their response to the Syrian refugee population, economy and institutions in 184 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations addition to the damage to infrastructure. Private Sector-Led Approaches for • Several ESIAs over the past years included Cookstove Dissemination – Trialing a focus on energy infrastructure and Innovative Base of the Pyramid (BoP) service delivery, including Lebanon (2013), Business Models in Refugee Camps Iraqi Kurdistan (2014) and Syria (2016). and Slums. The objective of the analysis DNAs are in-conflict analyses undertaken is to define blueprints and key design to assess infrastructure damages and parameters for innovative, large-scale reconstruction needs (mostly focused private sector-driven ICS interventions on urban areas). Recent examples with in BoP environments to make the best a strong focus on energy infrastructure commercially and technologically proven included DNAs for Syria, Yemen and Iraq. cooking technologies available to the most disadvantaged and vulnerable populations Afghanistan: Understanding the • in SSA in a timely manner. The assignment Drivers of Resilience and Conflict in will specifically target refugee camps and the Extractives Industry Sector: The slums in the region, both of which have objective of this grant is to: i) Develop been identified as prominent examples of analysis to inform stakeholders on the BoP environments where there is an acute potential drivers of local conflict around need for ICS interventions. The findings extractive industries in Afghanistan, and will be applied to the broader BoP context ii) build capacity around mechanisms for with the goal of supporting large-scale community engagement that seek to development of ICS businesses across redress grievances and mitigate conflict. the region. Section 4 185 ENVIRONMENT AND NATURAL RESOURCES GLOBAL PRACTICE A. STRATEGIC APPROACH populations. This is true not only adjacent to established refugee camps, but also within Of the more than 1.5 billion people who informal refugee settlements integrated into live in countries plagued by violence and urban and rural host communities. Examples of conflict, many rely on equitable distribution natural resource management impacts include of revenues from natural resource assets. soil degradation, tree-cutting, artisanal mining, Often, an even cursory examination of bush fires for land clearing, soil degradation such natural resource-rich regions raises resulting from cultivation of marginal lands, questions about the lack of transparency competition for scarce water resources, and accountability in central government as well as pollution from solid, hazardous, management of these assets. There is also the and human wastes. additional perception that the asset-hosting population has not received an adequate share The World Bank is cooperating more closely of the natural resource wealth, while bearing with humanitarian partners to address the costs of producing it. Typically, little is done environmental sustainability in forced to address the toxic environmental legacy of displacement activities. Examples of this natural resource exploration and exploitation include collaboration in Yemen emergency borne by local communities. These slights are operations with WHO and UNICEF, as well exacerbated by the stronger deleterious impact as current work on famine relief in Somalia that environmental degradation has on the with ICRC. As Bank-administered funding is poor than the rich. Groups excluded from the channeled to hard-to-reach areas through distribution of natural resource assets revert humanitarian partners, these partners are to illegal activities to recoup losses to their strengthening their environmental safeguards traditional livelihoods. Facilitating effective and systems. In turn, the Bank has learned from inclusive natural resources management (NRM) how these partners incorporate environmental can contribute to peace-building through sustainability into their procurement processes economic growth, sustainable livelihoods, and and supply chains. shared benefits. ENR can contribute most critically to the The traditional entry point of the FCS agenda by breaking the cycle of poor Environment and National Resources (ENR) governance of natural resources which can GP into Fragile State operations has been lead to, finance, and/or exacerbate already- through environmental safeguards. Although weak governance structures and economies. this approach remains a critical element Conflict over control and management of of sustainable operational impact, ENR is natural resource assets, exacerbated by climate rapidly responding to demands to integrate stressors, remains a primary driver of fragility. environmental and natural resource issues A new generation of Country Environmental into forced displacement work. Host Assessments (CEA) for fragile and conflict governments are increasingly requesting states are providing evidenced-based analysis World Bank Group assistance to manage on the political economy of natural resources as negative environmental impacts associated oft-mismanaged economic assets. with delivering basic services to displaced 186 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations B. PIPELINE for Sustainable Forest Landscapes (ISFL), Ethiopia recently finalized its ISFL program Mining and Forest Governance in Central • design of the Oromia National Regional African Republic is one example of a State Forested Landscape Program, which project in preparation, which germinated includes 6.5 million hectares of vulnerable from the Recovery and Peacebuilding forest. Similarly, Zambia has launching a Assessment (RPBA). Rapid improvement Global Environment Facility (GEF)-funded of the business environment, largely Integrated Forest Landscape Project, to dependent on a wealth of natural resources contribute to low-carbon development in (such as uranium, crude oil, gold diamonds, targeted landscapes of Zambia’s Eastern cobalt, timer, wildlife, and hydropower), Province. A complementary intervention, is critical to post-conflict stabilization. Transforming Landscapes for Resilience If the mining and timber industries and Development in Zambia will enhance are developed under the appropriate disaster-related preparedness through conditions, employment opportunities as increased ecosystem resilience and well as public revenues for better social productivity within vulnerable landscapes. services may both increase. A Rapid Diagnostic Assessment of Land • C. INNOVATING FOR IMPACT and Natural Resources Degradation in Areas Impacted by the South Sudan • The Mali Natural Resources Refugee Influx in Kenya, Sudan, and Management in a Changing Climate Uganda is expected to identify successful Project, co-financed by the GEF and models for addressing land and forested the Least Developed Countries (LDC) resources degradation in areas where the Fund, built on the community-driven forcibly displaced and host communities development (CDD) model as a point- are competing, and often in conflict, over of-entry to address, in prevention mode, already-scarce resources. the following twin conflict drivers: (i) a country’s fragility can turn into a vicious An important focus area for fragile • circle, with severe damage to natural and conflict-affected countries is the resources and vulnerable populations transfer of natural resource wealth to like women, and internally displaced subnational and local levels. Benefit persons; and (ii) by driving up the sharing at the community level is vital frequency, intensity and variability of for tackling grievances that often drive extreme weather patterns, climate change conflict. Building social capital within is likely to have disproportionately large and among natural resource user groups effects on vulnerable territories and can mitigate social risks and dampen communities. One of this project’s primary the effects of conflict on community implementation challenges has been cohesion. With support from the World how to assure continuity of technical Bank Group’s BioCarbon Fund Initiative support to local communities in zones of Section 4 187 insecurity and/or active conflict. Mali is one  xperimental evidence on cooperative •E example of several Sahelian FCS countries behavior and common pool resources participating in TerrAfrica and its second- from the Energy and Environment generation program of investments in group in the Development Economics integrated natural resources management Vice Presidency (DEC) has confirmed for sustainable and climate-resilient initial outcomes from Nepal Reducing development in Sahel and West Africa Emissions from Deforestation and Program (SAWAP). Forest Degradation (REDD+) funding on forest user group behavior. Forest user The Tunisia Integrated Landscapes • groups provide an organizing platform Management in Lagging Regions Project and service delivery vehicle for remote addresses these same twin conflict drivers and isolated communities, including with a “theory of change” to address elite those in areas where past insurgencies capture of ecosystem assets by: (1) creating have emanated. The neutral role adopted economic opportunities in the lagging by user groups during conflict enhances regions where the poorest populations their legitimacy and, after the conflict are concentrated; and (2) introducing ends, allows them to play a role in dispute mechanisms to reduce elite capture and resolution and informal justice efforts. ensure the flow of benefits to the typically These results suggest that policies to marginalized and poorer groups. While support cooperation and strengthen forests and rangelands are significant local governance could be important for to the livelihoods of rural households in collective action and improved economic and around forests and rangelands, the outcomes associated with forest resources. bulk of the economic value generated by As forest management and quality in forests and rangelands does not accrue developing countries is particularly to these households. About 55 percent important for climate change policy, of the economic value accrues to others, these results suggest that international through environmental benefits such as the efforts should pay particular attention to reduction of reservoir sedimentation, water supporting governance and cooperation retention and regulation, and protection at the local level. Several other examples against desertification, at the national of similar interventions include the DRC level. Additionally, in the agricultural sector, Forest Dependent Communities “elite capture” manifests itself in various Support Project and the Liberia ways: some groups have privileged access Forest Sector Project. to agricultural inputs; other groups have a stronger voice in local territorial planning  isplacement-induced natural resource •D compared to other groups, such as women degradation has been integrated into or unemployed youth, who have less say a multi-sectoral FCV operations in the in how landscapes are managed; and top- Development Response to Displacement down approaches limit broad-based and Impacts Project in the Horn of Africa, inclusive participation in local planning. the development objective of which is to To mitigate some of these capture risks, improve access to basic social services, investment in support for job creation and expand economic opportunities, and local development (including forestry and enhance environmental management for climate-smart agricultural practices) will in communities hosting refugees in target turn inform pro-poor local development areas. The project ($103 million IDA) plans, related policy reforms, and private seeks to address the social, economic, sector development activities. 188 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations and environmental impacts of the resulted in positive returns across several presence of refugees in host communities sectors, including job creation, private through interlinked investments in (i) sector participation, and trade and Social and Economic Infrastructure competitiveness. Environmental support to and Services, (ii) Environmental and ready-to-wear garment factories included Natural Resource Management, technical assistance. One example was and (iii) Livelihoods Programs. More how to comply with national recycling specifically, the intervention will decrease regulations for scrap fabric by procuring environmental impacts of protracted shredding machines which can create raw refugee presence, which has resulted in materials for toy and furniture stuffing. deterioration of the natural resource base This program of support for Better Works because of deforestation resulting from Jordan is also expanding monitoring and the overexploitation of wood and other enforcement of labor standards, including non-timber forest products for various OHS, to the chemicals and plastics purposes (shelter, firewood, charcoal, exporting industrial sectors. food, medicines, etc), degradation of grazing lands, loss of wildlife, soil erosion, An example of where ENR has • open disposal of solid waste (especially substantially contributed to FCV ASA plastics), and uncontrolled abstraction of work is Assessment of Post-Conflict groundwater for domestic consumption Environmental Consequences presented and livestock. as part of the Syria Economic and Social Impact Assessment. This seminal • Increasingly, Program-for-Results (PforR) analytical work on Syria reconstruction interventions are supporting host includes estimates public health and governments with substantial refugee resource (air, water, soil) contamination populations to expand their social impacts and remediation costs associated programs. In the case of the Jordan with removal of construction debris as well Economic Opportunities for Jordanians as clean-up of industrial areas supporting and Syrian Refugees PforR, one chemical weapons manufacturing and disbursement-linked Indicator prompted use. To highlight one piece of this work, a new public disclosure transparency industrial facilities have been substantially initiative for Better Works Jordan, damaged by the conflict, with agricultural reporting occupational health and safety lands and the population being possible (OHS) compliance ratings for ready-to- receptors of the consequent toxicities wear garment industries. Better Works released. To illustrate, as of March 2013, Jordan, a joint IFC-ILO funded initiative, losses to industrial facilities in the city provides both a program of international of Aleppo alone were estimated at $50 labor standards monitoring for the billion. Figure 39 overlays the location of garment sector, and builds capacity in the damaged industrial sites to the possible the responsible local government line hazard aquatic dispersion route and the ministries to take on this work in the density of the population at risk. longer-term. This is one example where environmental safeguards systems support Section 4 189 FIGURE 40 Source: Courage Services Inc. Aleppo’s possible pollution dispersion routes hinder access to public service delivery from identified damaged industrial sites, and require massive amounts of clearance, overlain with existing agricultural lands, and transportation and processing or disposal. The population density, both possible receptors recovery and management of debris which of this pollution. will have substantial negative impact on the environment and the health of the population The analysis also models the expected costs at risk, has been provisionally scoped making associated with residential debris for the use of environmental health analysis from cities of Aleppo and Homs, the removal of the Iraqi Gulf Wars as well as from the World which will impact the return of residents and Trade Center Health Program for 9/11 First industrial activities, reconstruction works, Responders and Survivors. 190 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations SOCIAL, URBAN, RURAL, AND RESILIENCE GLOBAL PRACTICE A. STRATEGIC APPROACH IDA18. The GSG SPS is a community of operational practitioners based on the principle Solutions to fragility, conflict and violence of collaboration and open to anyone who is (FCV) are an integral part of the work of interested in operational FCV work. The GSG the Global Practice for Social, Urban, Rural, SPS organizes itself with the help of (currently) and Resilience (GSURR); only communities nine thematic groups by product line: that are resilient, cohesive and safe can also be sustainable. GSURR’s sub-practices have a • Advisory services and analytics long-standing engagement in FCV situations, and combine contextual understanding,  emobilization and reintegration •D specialized experience, and ability to respond of ex-combatants and deliver rapidly. Intra-GSURR collaboration • Community driven development allows to put forward an effective mix of skills for every situation. GSURR has developed • Forced displacement a cadre of close to 200 staff working on operational solutions to FCV, based both in HQ • Urban service delivery and in locations around the world. GSURR is also one of the most active Global Practices in • Land and conflict FCV contexts, with a current portfolio of • Gender-based violence 54 projects48 and a total commitment of $2.4 billion. • Safe and inclusive cities GSURR is working on FCV issues in both  ocial safeguards/standards •S low-income and middle-income countries in FCV contexts as well as in a variety of situations – from fragile states, in/post-conflict situations, and These thematic groups provide advice/ sub-national conflict areas, to violent cities and guidance to task teams and facilitate refugee-hosting countries. interaction between colleagues working in/ on different countries/regions. Some of the To provide scaled-up support to respond to activities of the thematic groups are to develop diverse FCV challenges across all client groups, an engagement approach, take stock of GSURR created a Global Solutions Group on ongoing/recent activities, review the evidence Stability, Peace, and Security (GSG SPS) to in their respective field, and prepare guidance/ enhance its operational quality and relevance, K&L notes. develop staff capacity, and promote cross- country learning. As such, the GSG SPS focuses This following section provides an overview on operations and analytics for operations and of GSURR’s innovative analytics and advisory complements the corporate agenda of the FCV services, operations and convening services CCSA. The GSG SPS also aims to contribute to and partnerships in FCV settings. the sustainability of the FCV agenda beyond Projects which are undertaken in countries listed in the FY 17 Harmonized List of Fragile Situations (as used by OPCS). 48  Section 4 191 GSURR Analytics and Advisory Services GSURR has undertaken forced displacement assessments to encourage national and local Beyond landmark flagship reports, GSURR government leadership on displacement issues. has developed its Analytics for operations In-conflict damage and needs assessments (“peace lens”) and geospatial analysis to (DNAs), Recovery and Peace Building enhance real-time analysis and operationalize Assessments (RPBAs), Risk and Resilience that analysis in conflict situations. GSURR Assessments (RRAs), and Social Assessments plays a central role in mainstreaming FCV (SAs) are all active areas of engagement. issues in sectoral operations. A “peace lens” Analytics also address interpersonal and helps design projects that address the causes gender-based violence, socio-economic and consequences of FCV, and goes beyond reintegration of ex-combatants, land and ‘do no harm’ to ‘do good’ by proactively and conflict mapping in support of peace purposively contributing to peace-building. agreements and economic recovery, and youth E.g. in Colombia, GSURR has been working and violent extremism. Other services include closely with operational teams across GPs violence monitoring systems to track trends to use seven key dimensions to assess and impacts of violence and public expenditure all operations and address causes and/or reviews (PERs) for the security sector which consequences of conflict. examine resource allocations, fiscal space, and cost drivers in relevant institutions. FIGURE 41: MAIN THEMES OF GSURR ASA PORTFOLIO IN FY18 192 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations GSURR Operations Demobilization, reinsertion and • reintegration of ex-combatants. Bank GSURR offers a broad range of interventions engagement in demobilization and that are either specific to FCV contexts or socioeconomic reintegration programming standard interventions which also exist in non- has expanded over the last 25 years to FCV contexts,49 but which are adapted to and more than 25 programs across 20 nation- often used in FCV contexts. states (including in Mali and CAR), as well FCV-specific interventions as several regional initiatives. Gender based violence (GBV) prevention • Adaptations of standard interventions and response in FCV includes the first Community-driven development (CDD) • dedicated IDA operation, the Great approaches have been an important Lakes Emergency Women’s Health and engagement modality for governments Empowerment Project, led jointly with and the World Bank in FCV. In FCV GP Health. situations, CDD approaches are often seen Urban violence prevention operations • as addressing three core needs: supporting to address urban violence and crime can access to essential services, fostering be self-standing, as in the Honduras Safer community trust and social cohesion, Municipalities Project (SMP), or can be and strengthening state-society linkages. integrated into other projects, such as in Because of their ability to reach scale Jamaica and Guatemala. relatively quickly and to operate even in remote or conflict-affected environments, Forced displacement operations that • CDD approaches have increasingly target service delivery, economic recovery, become the modality of choice in FCV employment generation, community environments, as confirmed in IEG reviews revitalization and social cohesion help of FCS operations in 2014 and of conflict promote sustainable integration and return in middle-income countries in 2016. CDD for forcibly displaced populations and host operations are currently active in 20 FCS communities. This includes activities in countries (out of 36 total on the Bank’s urban settings where displaced populations FCS list), representing $9.8 billion of put additional stresses on water, sanitation total financial support (e.g. Bank and and other urban services, infrastructure, donor financing). shelter and access to land. Multi-sector local service delivery/crisis • Victims support. GSURR has supported • recovery. Especially in urban settings, victims of the Colombian conflict through projects aim to meet the needs of the Colombia Collective Reparation for conflict-affected populations by Victims through Social Reconstruction delivering basic services and help Project which seeks to provide technical communities build resilience. assistance to the Government of Colombia by strengthening and deploying a model for the Collective Reparation Program for victims at the national and local level. “specific to FCV contexts” means that the type of intervention is only used in FCV settings. 49  Section 4 193 In-conflict recovery and reconstruction •  isaster Risk Management (DRM). •D through integrated service delivery GSURR brings conflict sensitive approaches and institution building. The Bank is to DRM to address the inter-related risks also moving increasingly into “in-conflict” of conflict, fragility, natural hazards and service delivery, such as in Iraq and in climate change. For example, GSURR Yemen. The Emergency Operation for is working with women in IDP camps in Development Project in Iraq, for example, Somalia to address both, natural hazard is supporting the Republic of Iraq in the risks and gender-based violence. reconstruction of damaged infrastructure and the restoration of public services  itizen Engagement (CE) mechanisms •C delivery in targeted municipal areas and is help promote citizens’ ownership of being expanded to cities being liberated. development interventions through their participation in decisions regarding access Youth interventions in FCV contexts is • and the distribution of resources. critical since youth are one of the groups most adversely affected by fragility, conflict  ocial safeguards and social risks in •S and violence. GSURR’s youth development FCV environments focus on ensuring projects in FCV contexts address key issues operational rigor while adapting the of ethnic and social polarization, social Bank’s policies to the reality of exclusion, gender inequities, radicalization complex environments. and violent extremism, and the lack of GSURR Coordination, Convening and voice and participation and economic Partnerships opportunities for excluded youth.  latforms for coordination, joint •P Land reform and administration • planning, implementation and operations in conflict-affected communication help clients on a broad environments. GSURR, in partnership range of themes, including long-term with the Governance GP, supports development-oriented responses to the development of coherent land conflict, displacement, urban violence policy and regulatory frameworks and and land reform and administration. This of efficient institutions for land policy has included strategic planning, capacity and administration. Land reform and building, and peace process support administration operations supported with CMUs to clients such as Myanmar, the peace accords in El Salvador and Mindanao (Philippines) and Colombia. support the implementation of the peace agreement in Colombia, where  eer learning events allow champions •P GSURR has been supporting the land (policymakers, civil servants, practitioners, restitution process. and academics) to learn first-hand and get inspired from diverse experiences that have Housing and urban development. • proven successful in preventing, amongst GSURR supports the establishment and others, youth violence and crime. In 2017, strengthening of urban institutions and the Medellin Living Lab, for example, systems to deliver improved infrastructure brought together representatives from and services to urban areas that more than 35 cities to share different face challenges in access to basic methodologies and experiences infrastructure resulting from with respect to security, coexistence, interpersonal or political violence. and resilience. 194 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations FIGURE 42: SURR FCV PORTFOLIO Country and regional conferences. • B. PIPELINE GSURR has engaged in a broad range of events and conferences addressing GSURR operations in FCV contexts: GSURR’s important issues of the global FCV FCV work cuts across all Bank business lines agenda, such as regional conferences in and provides important operational and Cali, Colombia (Comprehensive Solutions analytical inputs into the Bank’s FCV work. for Crime and Violence Prevention: Currently, GSURR has the largest FCV lending Strengthening Local Institutions for portfolio in terms of number of projects and Citizen Security and Coexistence in the third largest in terms of commitments. The Latin America and the Caribbean) and work spans all categories including lending Antigua, Guatemala (Together for Action: projects, small grants, MDTFs, and ASA Partnership for Youth Crime and Violence activities. GSURR’s total commitment is $2.44 Prevention in the Americas). billion (current portfolio). The primary source of funding is IDA with $1.74 billion. Financing Humanitarian – development • through trust funds stands at $352.98 million. cooperation is an important focus area under IDA18 and requires strengthened FCV work in non-core countries. Many partnerships with a range of stakeholders, countries are fragile or experience sub-national particularly in the humanitarian community. conflict but do not meet the full FCV criteria, In response, GSURR in cooperation with the for example the Mindanao Region of the FCV CCSA has launched a lunchtime series Philippines or Guinea. GSURR is working in with NGOs and international organizations many of these countries. For instance, although that have a long-standing track record of not in the FCV category, the longstanding working on forced displacement. Indonesia National Community Empowerment (PNPM) program and its work on conflict and violence have been a valuable source of knowledge underpinning social cohesion work in GSURR’s FCV portfolio. Section 4 195 TABLE 10 Project Name Region Country FY Commitments ($M) Total IBRD IDA Others Land Policy Implementation Project AFR Côte d’Ivoire 2018 50.00 0.00 50.00 Tana Urban Development and Resilience AFR Madagascar 2018 70.00 0.00 70.00 SS-Local Governance and Service Delivery AFR South Sudan 2018 60.00 0.00 60.00 Kinshasa Urban Development Project AFR Congo, Democratic 2018 150.00 0.00 150.00 Republic of Togo - Urban Infrastructure Project AFR Togo 2018 30.00 0.00 30.00 Liberia Land Administration Project AFR Liberia 2018 7.00 0.00 7.00 Fixing Freetown 1 AFR Sierra Leone 2018 20.00 0.00 20.00 Somali Urban Resilience and Recovery AFR Somalia 2018 20.41 0.00 0.00 20.41 REP II EAP Solomon Islands 2018 15.00 0.00 15.00 Enhancing CDD in Myanmar EAP Myanmar 2018 25.00 0.00 0.00 25.00 Haiti: Local Development Project LCR Haiti 2018 50.00 0.00 50.00 GZ-Third Municipal Development Project MNA West Bank and Gaza 2018 16.00 0.00 0.00 16.00 Land Administration System Modernization MNA Lebanon 2018 43.00 43.00 0.00 Emergency Operation for Development - AF MNA Iraq 2018 600.00 600.00 0.00 Integrated Urban Services Emergency Project MNA Yemen, Republic of 2018 150.00 0.00 150.00 Regional spread. As with the FCV list itself, C. INNOVATING FOR IMPACT much of the lending portfolio is concentrated in AFR, followed closely by EAP. In terms of Section A of this paper has already outlined countries, Afghanistan and West Bank and various examples of GSURR innovations in Gaza have the highest numbers of projects. FCV settings. Some good practice examples GSURR is also implementing regional FCV and innovations that GSURR undertakes operations, for example, gender in the are, amongst others, social assessments, Great Lakes Region and projects on forced community driven development/reconstruction displacement in the Horn of Africa and the operations in conflict-affected areas, gender- Great Lakes. based violence prevention and responses in FCV settings, post-disaster emergency recovery responses, and violence monitoring systems. GSURR is also intensifying its engagement in multi-sectoral operations to enhance its operational effectiveness. This section showcases in more detail a few examples of innovative GSURR FCV operations. 196 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations LAKE CHAD BASIN FORCED DISPLACEMENT: SUB-REGIONAL PRELIMINARY ASSESSMENT The World Bank GSURR and Water teams worked jointly with UNHCR teams to produce this Regional Assessment of Forced Displacement by the Boko Haram in the Lake Chad Region. This regional assessment focused on forced displacement in the Lake Chad region in general, and the population displaced by the Boko Haram conflict originating in North- East Nigeria. It is based on quantitative and qualitative data. Geographically, this regional assessment covered the four countries that border Lake Chad—namely, Cameroon, Chad, Niger, and Nigeria. The main objective of this assessment was to understand and analyze the impacts of forced displacement caused by the Boko Haram conflict. It also offered a comprehensive roadmap to address both the complex humanitarian and development needs emerging from the crisis, and to bridge the gap between humanitarian and development efforts. Recommendations focused on facilitating the integration and self-reliance of the forcibly displaced, regardless of the place where they were (i.e., communities of origin, host communities, or third locations), taking into account both the immediate priorities expressed by the affected populations for survival and the requirements for sustainable recovery and development necessary for longer-term regional stability. SIERRA LEONE MULTI-CITY HAZARD REVIEW AND RISK ASSESSMENT To better understand natural hazard and disaster risk in Sierra Leone, the World Bank and GFDRR are supporting under the ACP-EU funding the development of new hazard and risk information in Sierra Leone for targeted cities (comprising riverine floods, flash flood, landslide, sea level rise and coastal erosion etc.), as well identifying priority Disaster Risk Management (DRM) and mitigation measures for better urban resilience. The results of this project will be used to: a) support provision and increased resilience against disasters in three cities, b) contribute to urban planning, c) and build city councils’ capacities in term of risk knowledge, disaster prevention, and preparedness to strengthen urban communities’ resilience against disasters. Section 4 197 PROGRAMMATIC APPROACH TO STRENGTHEN VIOLENCE PREVENTION AND IMPROVE PUBLIC SAFETY IN BRAZIL GSURR has been undertaking a Programmatic Approach (PA) on violence prevention in Brazil since 2015. It supported the preparation of (i) a study on the costs of violence in Brazil; (ii) three local diagnostics of crime and violence and three implementation briefs developed for the cities of Belo Horizonte, Fortaleza and Recife; (iii) a peer-learning event with approximately 20 participants from city governments, including public security secretaries; (iv) an implementation brief of evidence-based policies targeted at Brazilian cities; and, (v) an assessment of violence prevention activities and project components in the Bank’s portfolio in Brazil over the past ten years, aimed at drawing lessons and identifying opportunities for further engagement. The PA has also allowed the Bank to advance the agenda internally and improve its strategy for the longer term and has contributed to strengthening the capacity of select counterparts on evidence-based policies to reduce urban and, specifically, youth violence. It has also consolidated strong partnerships with key national actors, such as the Brazil Forum for Public Security (FBSP), and a network of practitioners and researchers to build and share evidence of interventions that have a robust track-record in reducing urban violence; and has helped to identify key gaps in implementation of violence prevention policies, especially at the local level. The technical assistance activities financed by the PA showed that, if better planned and included at the early designed stages, Bank projects can help prevent crime and violence, as for instance in the case of technical assistance to Teresina after violence erupted in some of the areas targeted by a Water project. The PA analytical activities also highlighted the need to better address one of the key drivers of violence in Brazil: the social exclusion of afro- descendant youth, which contributes to make this population the vast majority (over 70%) of homicide victims in the country. Consequently, the PA is identifying entry points to develop an agenda focused on violence prevention for Afro-descendant youth in FY18. 198 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations TRANSPORT AND DIGITAL DEVELOPMENT GLOBAL PRACTICE A. STRATEGIC APPROACH Multi-sector emergency projects to • restore critical infrastructure and build The Transport and Digital Development GP’s state support (Examples: Liberia, Côte strategic approach to fragility, conflict, and d’Ivoire, Iraq, and DRC); violence (FCV) situations views physical and virtual connectivity as a catalyst for reducing Innovative implementation schemes • extreme poverty and promoting inclusive using various UN agencies: UNOPS growth, even in the most challenging contexts. (Afghanistan, CAR, Haiti), UNMIL The GP recognizes that a wide spectrum of our (Liberia); and the civil engineering clients experience FCV challenges in varying adjuncts of a client country’s military forms and severity and that the World Bank (far north Cameroon); is uniquely positioned to explore and address transport and Digital Development- Planning and developing long-term • FCV linkages across the spectrum. investment programs and anchoring major development investments with the This strategic approach emphasizes three support of other GPs and DPs; main areas of impact: (a) promoting safe and affordable physical and virtual connectivity to Gathering critical mass of investment • grow and integrate economies, connect at-risk (Liberia, South Sudan, CAR and populations, rebuild social cohesion, mitigate Afghanistan); conflict, and sustain fragile peace; (b) enhance Policy reforms to support IFC • governments’ ability to deliver critical services, investment in underserved telecoms including in response to refugee crises, in markets (i.e., the Digital Infrastructure order to build state legitimacy and acceptance Initiative, see related box) of state institutions; and (c) build capable and lasting institutions to deliver resilient Building capacity to help break the • development impact, including climate-resilient fragility trap (Côte d’Ivoire); development outcomes. Creating job opportunities for ex- • The GP has deployed a range of approaches combatants and refugees (through to engage in FCV contexts: Public Works in South Sudan, Liberia, CAR and Lebanon). Rapid, effective, and sustained response • on emergency basis in post-conflict and The Transport and Digital Development Global ongoing conflict environments (Examples: Practice is seeking to expand an already strong Liberia, Afghanistan, and Iraq); role in the overall Bank Strategy for FCS, including through staff capacity development to support the doubling of IDA18 support to Fragile and Conflict Situations (FCS). Section 4 199 B. PIPELINE The average annual GP pipeline in FCS has increased in recent years and continues to reflect the GP’s strategy of sustained engagements in capacity building and conflict recovery. An analysis of transport operations for 2006-2016 found that the Bank approved 74 operations50 in transport amounting to $4.45 billion in commitments. The analysis demonstrated sustained engagements. For example, half of the 74 operations supported five countries: Liberia (13 projects), Afghanistan (8 projects), Haiti (6 projects), and the Congo Democratic Republic and Georgia (5 projects each). The current FY2018 pipeline portfolio has significantly increased over recent years. TABLE 11. FY18 TRANSPORT AND ICT PIPELINE PROJECTS Country Probability Amount Tuvalu Likely 20.0M Tuvalu Likely 8.8M Liberia Likely 29.0M Côte d’Ivoire Firm 75.0M Somalia Likely 16.0M Afghanistan Likely 90.0M Papua New Guinea Likely 65.0M Tuvalu Likely 10.0M DRC Likely 300.0M Côte d’Ivoire Likely 400.0M Guinea-Bissau Likely 20.0M Mali Firm 70.0M Lebanon Likely 250.0M Total 1,353.8M Note: This table is an estimate for 2017 and 2018. Most years under analysis predated the merger of Transport and ICT GP; the dataset therefore did not include all ICT operations. 50  200 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations FIGURE 43: TDD GP FCV COMMITMENTS BY FISCAL YEAR ($ MILLIONS) Note: This figure is an estimate for 2018. C. INNOVATING FOR IMPACT IRAQ: CONFLICT MITIGATION AND RAPID DAMAGE ASSESSMENT IN AN ACTIVE-CONFLICT SITUATION The Emergency Operation for Development Project (EOPD) was prepared and implemented in an active-conflict situation to help the government rapidly re-establish state presence and secure peace in areas liberated from ISIS. This project is a cross-sectoral emergency reconstruction operation involving five GPs and covering transport, health, energy, water & sanitation, and waste management. It aims to mitigate the risk of renewed conflict in liberated areas by rapidly re-establishing basic infrastructure and services and building public support for the state. The project showcases numerous important innovations: A flexible design allows project resources to be rapidly shifted to new geographic areas • and sectors in response to emerging needs. This highly-responsive and client-oriented approach facilitated faster recovery and is critical to the project’s political objectives. Flexibility afforded by World Bank emergency policies (OP10 para 12 and OP11 para 20) • enabled rapid approval and mobilization of US$350 million IBRD financing. Use of remote sensing techniques to identify needs and TPM for • implementation supervision. Section 4 201 LIBERIA: PAYOFFS FROM SUSTAINED ENGAGEMENT The TDD GP was among the first to engage in Liberia’s post-war reconstruction using labor- intensive road works to provide employment and stability and improve market access to support agricultural livelihoods. Sustained engagement over fifteen years has enabled slow but sustained development of institutional capacity in the transport sector and multi-modal infrastructure. The Liberia Road Asset Management Project and upcoming Southeast Corridor Road Asset Management Project are designed to upgrade two of Liberia’s most essential primary roads to a paved standard, providing a vital road transport backbone in a country where the rural population is isolated during the rainy season. Key accomplishments in the Liberia portfolio include: Early engagement with the United Nations Mission in Liberia (UNMIL) to identify and • implement critical recovery and peacebuilding projects to improve state-presence and support social stability through employment. Collaboration with other GPs and development partners to establish basic services • including water, electricity, and sanitation in greater Monrovia. Transacting a successful concession of the Monrovia Port in 2011 and ongoing • transaction to set up a dry port on PPP basis to improve the efficiency of the country’s logistics. Sustained capacity and institution-building efforts have helped to set up several key • public institutions like PFM Unit, the Road Fund, and the Infrastructure Implementation Unit (to be folded into a road agency). Use of Output and Performance-based Road Contracting has enabled construction • of large civil works projects in a low capacity environment and significantly lowered the costs. Operationalized Cascade through innovative PPP approach that allows the private • partner to raise part financing and offer a solution that maximizes the length of road to be developed. 202 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations CAMEROON, CHAD, CENTRAL AFRICAN REPUBLIC: A REGIONAL RESPONSE TO A REGIONAL SECURITY THREAT The CEMAC Transport-Transit Facilitation Project is designed to mitigate conflict risks in central Africa. In two and a half years, Boko Haram has killed at least 1,300 civilians, 120 soldiers and abducted an estimated thousand people in Northern Cameroon, among the poorest regions of Cameroon and an active conflict zone since early 2015. CEMAC is rehabilitating 205km of roads of critical regional importance in an active conflict area under an Output Based Disbursement Force Account (OBDFA) arrangement with the Army Corps of Engineers (ACE). In addition to the high security and social risks, this approach entails consideration of safeguards, fiduciary, operational and reputational risks. Specific implementation arrangements and social risk mitigation measures have been established. Key innovations in the project include the execution of civil works by ACE with military protection; robust risk management with careful selection of military personnel, training, and a zero-tolerance policy for allegations of misconduct; as well as the adoption of appropriate Grievance Redress Mechanisms (GRM) and the development of a regional approach to transport-FCV linkages. VANUATU, SAMOA, AND TUVALU: ADDRESSING GENDER BASED VIOLENCE THROUGH CODES OF CONDUCT Gender Based Violence (GBV) and Violence Against Children (VAC) are major issues in FCS in the Pacific Islands with reported incidence rates of 68 percent in Kiribati, 51 percent in the Marshall Islands, and 40 percent in Tuvalu.51 T&I GP and the Gender Group undertook a joint pilot by embedding ‘Codes of Conduct’ in bidding documents for major civil works contracts. These have been used in Vanuatu and are now being tested in Samoa and Tuvalu. The bidding documents require bids to demarcate funds for training their staff on GBV and VAC dispute-resolution. The Codes of Conduct recognize that three key parties must commit to addressing GBV and VAC: (i) the Company which commits to creating the appropriate standards; (ii) the Management who need to implement the company’s commitment; and, (iii) individual workers. The managers and individual workers each sign a Code which outlines the expectations, obligations and sanctions should they fail to meet their commitments. The approach ensures that local service providers are available for staff training and victim support. Each project’s Grievance Redress Mechanism has a clear process for addressing GBV and VAC complaints, with a focus on protecting and assisting survivors. Gender-based Violence (GBV) in PIC9 Countries. World Bank, 2016. 51  Section 4 203 To innovate, the Transport and Digital Emergency needs should integrate with Development GP is drawing lessons from medium- and a long-term support and operational experiences. stabilization strategy. Addressing immediate emergency needs on an ad-hoc basis is Strong fragility analysis/diagnostics are inefficient. Furthermore, it is necessary to critical to designing projects that respond define a broad outline for the sector early to underlying FCV drivers. Transport and in the recovery process to enable project ICT have extremely important roles in conflict identification and sequencing and guide mitigation and securing peace. Strong institutional and capacity development. diagnostics are essential to designing projects that respond to underlying fragility drivers. Operating in high-risk environments requires Close collaboration with development partners, commitment, resourcing, and innovation. particularly entities with strong capacity in Although use of social media and satellite security issues, will enhance responses to those imagery for rapid damage assessment and drivers, particularly conflict. conflict monitoring have improved the GP’s fragility focus, situational awareness, and Simplify projects and engage stakeholders. responsiveness at lower cost, third-party While the needs are significant, complex monitoring of civil works and increased multi-sector operations can be difficult to staff support to low-capacity clients require implement in FCS. Multiple implementing additional costs. entities amplify the challenges present in many FCV contexts, such as inter-government Flexibility is essential for successful coordination. Nevertheless, experience in implementation. Many fragile situations Liberia, Haiti and Colombia points to benefits call for tailored business processes (for of providing multiple services at the same time instance condensed procedures under and grassroots engagement, particularly in OP 10:00 Paragraph 12), flexible Project environments with weak state support. Development Objectives, and unconventional implementation arrangements, such as third- Continuous stakeholder engagement and party monitoring, innovative use of technology, strong development partner cooperation or implementation of activities on behalf of are key success factors. A combination of governments unable to implement projects in transparency and stakeholder engagement their own territory. mitigates the risk of elite capture. Development partner coordination, such as in Cameroon, Plan for key risks and crises, including Iraq and other cases, is essential to maximize climate risks. Climate vulnerability is the impact of potentially overlapping programs exacerbated by challenges associated with and to impact underlying fragility drivers. FCS, such as weak capacity, poverty, poor governance, and infrastructure gaps. An emergency component (CERC) will enable use of project resources to respond to an emergency (Haiti, Mozambique, and many others). 204 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations Strong and sustained technical assistance is critical to project implementation and building capacity. Experience has repeatedly shown low-income countries are at a high risk of under-funding maintenance of transport assets. Maintenance remains the most cost- effective investment in the transport sector, which was proven in Haiti where better- maintained infrastructure proved more resilient to major storm events. Appropriate design, construction and rehabilitation standards – including climate resilient standards – are essential. Poor standards make for poor performance, higher costs, and increased future maintenance liability. Enhanced hands-on Implementation support is an essential part of the World Bank’s value-added in FCS. This not only requires higher budgets for engagement, but a broader and deeper skill set in the task team to meet client and project needs. Implementation support at key procurement and contract management stages is often essential to cost- effective and resilient outcomes and achieving Project Development Objectives. Section 4 205 WATER GLOBAL PRACTICE A. STRATEGIC APPROACH FIGURE 44: THE CYCLE OF WATER INSECURITY Water challenges—ranging from chronic water scarcity to lack of access to safe drinking water and sanitation services, to hydrological uncertainty and extremes (floods and droughts)—are perceived as some of the greatest threats to global prosperity and stability.52 Many of these challenges are expected to intensify as climate change unfolds and populations continue to grow. Failures to deliver water and sanitation services, or to ensure resilience to water- related shocks, have particularly powerful effects in fragile contexts that can prolong and deepen fragility. Populations are Water security is more difficult to achieve particularly vulnerable to the direct impacts in fragile contexts due to weak institutions of water insecurity. Water insecurity can and information systems, strained human intensify perceptions that a government is and financial resources, and degraded unwilling to or unable to meet the needs of infrastructure. Increasingly, Water GP its citizens—perpetuating a vicious downward interventions address capacity building of spiral—thereby weakening the social compact country institutions to provide, protect and between the government and citizen preserve water as well as addressing the groups and acting as a destabilizing immediate needs in situations of conflict force and risk multiplier.53 and crisis. In protracted crises, this requires flexibility to respond both to periods of The Water GP focuses on improving water development opportunity and to critical security by building the capacity of country needs (see figure above). institutions to: 1. Provide citizens with basic water services;  rotect citizens from water-related 2. P disasters; and  reserve surface, ground and 3. P transboundary water resources. World Economic Forum 2015, 2016 and 2017 - Survey of leaders from business, government, academia, and nongovernmental 52  and international organizations Sadoff, Claudia W.; Borgomeo, Edoardo; de Waal, Dominick. 2017. Turbulent Waters: Pursuing Water Security in Fragile 53  Contexts. World Bank, Washington, DC. © World Bank. 206 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations During positive periods of development Protecting water resources that utilities • opportunity, the Water GP makes and populations rely upon from capture investments in: by private or factional interests; • Visible54 water infrastructure and services, Restoring flood protection infrastructure • such as water supply and irrigation, that in areas at high risk of flooding. can bolster support for nascent transition governments, helping to strengthen citizen- Interventions during shocks and protracted state relations and to support domestically crises are often multisector interventions led development processes; developed in collaboration with other GPs, including GSURR (e.g. Nigeria) and Health • Strengthening water resources GP (e.g. Yemen, Sierra Leone, Liberia, Guinea, management and water-related disaster Haiti). As a last resort, these are delivered risk management systems that assist through non-governmental organizations clients to build resilient systems and (e.g. Somalia) while ensuring that short- help avoid or mitigate potential “trigger” term humanitarian measures support, not events that might deepen fragility. undermine, medium-term development measures (e.g. where possible supporting During shocks and crises, the Water GP rehabilitation of boreholes rather than supports and reinforces existing water water trucking). sector institutions and infrastructure, preventing countries from sliding further Reversing the water insecurity–fragility into fragility. Investments in highly visible vicious cycle requires investment in water infrastructure may not be possible (for example, services and infrastructure needed to during armed conflict) or desirable (for manage floods and droughts and the example, visibly supporting state institutions management of water resources. In the that are contested). Investments are instead medium-term, infrastructure is key to these focused on less controversial but critically three types of water intervention. But better important challenges of: knowledge, data and institutional capacity— often through bank-executed technical Maintaining water and sanitation services • assistance—is repeatedly proving to be the for basic needs, provision of household first and fastest way of addressing the water- water treatment and knowledge to stem insecurity-fragility cycle. the spread of water borne diseases; Visible here means that infrastructure or services are evident to citizens even if much of the infrastructure is underground. 54  Section 4 207 TABLE 12: EXAMPLES OF WATER-RELATED INVESTMENTS AIMED AT REVERSING THE WATER INSECURITY AND FRAGILITY CYCLE Provide Water Services Situations of Development Opportunity Situations of Shocks and Protracted Crisis Guaranteeing water services that Promote cost recovery and efficiency in • Support cost recovery with one-off • meet standards of affordability, water utilities subsidies or in-kind donation for reliability, and quality helps operating needs to reverse the vicious cycle. • Develop a customer database Investments to reduce inadequate • Retain skilled staff Finance labor intensive irrigation • and unequal access to water rehabilitation and expansion Extend water utility services to IDPs • services can promote stability in and host communities fragile contexts. • Strengthen dam safety Construct small-scale hydropower for • isolated communities Protect from • Develop disaster preparedness plans Protect key hydrometeorological early • Water-Related Disasters warning and ICT systems Integrate remote sensing data into • information systems Ensure equity and transparency in disaster • Preparedness and response to response and relief efforts disasters are central elements Upgrade hydrometeorological forecast • of the social compact. Disaster and early warning systems impacts and recovery options vary widely so investments need to Adopt conflict sensitive approaches • account for different gender, social to DRR and economic circumstances. Strengthen communication for • disaster response Preserve Surface, Ground and Sustain water resources planning, • Protect critical interconnected • Transboundary Water Resources monitoring and enforcement infrastructure Regulate and monitor groundwater • Prevent ecroachment by private and • Governments need to guarantee abstraction fractional interest the adequacy of water resources for their populations and Rehabilitate/develop water storage • Prevent investments in non-sustainable • to preserve healthy aquatic infrastructure using labor intensive solutions ecosystems. Working towards methods sustainable waterresources Monitor compliance with transboundary • management and cooperation basins • Share information in transboundary  agreements water sharing agreements is key Pursue cooperative transboundary • to reverse the water security and water agreements fragility cycle. B. PIPELINE Two contrasting trends in water related investments over the past The Water GP has an active portfolio of decade are evident: $1.7bn across core FCV affected countries (see table 12 on page 209) with a pipeline Water GP-led operations tend to be 1.  of planned projects of just under $1bn. A more development oriented – supporting further $1.3bn of lending, that includes water investment through country institutions related investments, is under preparation (national and local) – but are concentrated through support to other GPs including: in countries where the Water GP has a Agriculture, Energy, Environment, Governance, history of investment; Health, Social Protection, and GSURR. Water GP-supported operations led by 2.  other GPs tend to be more emergency oriented, responding to crises in FCV- affected countries and situations – often through non-governmental organizations (UN and NGOs) and/or decentralized government entities. 208 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations Between 2000 and 2010, Water GP-led Looking ahead, the objective is the operations expanded into some additional continuation of lending in FCV countries FCV-affected countries where there was with existing projects,56 and expanding particularly strong demand (Afghanistan, Water GP engagement into additional FCV DRC, Haiti, Lebanon, Iraq, West Bank Gaza). countries. In preparation for IDA18 and to However, in 2010 there were still more than 16 address this constraint on expanding Water GP FCV countries where water risks were a concern operations, the Water GP Leadership Team has without Water GP-led operations, and that allocated trust-fund resources for “Catalytic had only limited Water GP involvement in the Support to Water GP Operations in FCV water-related operations of other GPs. Affected Situations.” This will enable the Water GP to: Recognizing these trends, the Water GP expanded its upstream technical assistance Engage in a greater number • to FCV-affected countries over the period of FCV countries; of 2011-2016, to: initiate sector policy dialogue, better understand the emergency- • Expand to new water subsectors; to-development transition, and gather data Improve linkages between Water GP- • to support rebuilding the state’s role in sector led and other GP operations with water oversight and utility reform.55 This helped components (often bridging emergency stimulate country demand for new water- and development oriented approaches); related operations in CAR, Liberia, Papua New Guinea, Somalia and Zimbabwe. Expand water-related operations into • fragile areas of more stable counties (Cameroon, Ethiopia, Kenya, Nigeria, Pakistan, Colombia). This was done through the Water and Sanitation Program: WSP (2016). Water Supply - The Transition from Emergency to 55  Development Support: Evidence from Country Case Studies in Africa. de Waal, Dominick et al (2016). Water Supply: The Transition from Emergency to Development Support. Evidence from Country Case Studies in Africa. Washington, D.C.: World Bank Group Afghanistan, CAR, Iraq, Jordan, Kiribati, Lebanon, Liberia, Mali, Mozambique, PNG, West Bank & Gaza 56  Section 4 209 The facility provides operational teams Local WBG presence improves and 4.  working on FCV affected countries with accelerates progress. The highest three areas of support to make water-related intensity of Water GP-led responses is in investments that address and reverse the FCV countries where the Bank has local water-insecurity-fragility cycle: i) Upstream staff and long-standing relations with analysis to inform options for reengagement the respective utilities and municipal in the water sector; ii) Data collection for authorities. The clear example of this has project preparation; iii) Learning from existing been the Bank’s ability to respond in West operations and partnerships. Bank and Gaza where the Water GP has worked with the authorities to prepare nine small projects over the past decade, C. INNOVATING FOR IMPACT responding both to specific crises with emergency operations and to periods Five general lessons can be drawn from water of stability with more development- related interventions in FCVs: oriented projects. There is a need to invest more in 1.  Better linking sector specific and multi- 5.  innovative solutions that support sector projects. World Bank multi-sector the transition from emergency to emergency projects are often clear about development support. Stretching their intention to, for example, relieve development interventions into the pressure on services generated by the post-crisis recovery phase opens influx of refugees from the Syrian crisis. greater opportunity for a double By contrast, the highly technical water dividend: that of improving water development projects, will, for example, services and of state building. increase the volume of water available but will not directly address forced The balance between investing in 2.  displacement and increased service infrastructure versus investing in pressure. More emphasis across the Bank institutional capacity building needs portfolio needs to be placed on ensuring to be weighed carefully. The number these two approaches align. of non-functional systems, the limited construction quality, the burgeoning of low quality local coping strategies—all point to the efficiency gains that could be achieved by developing government oversight capacity necessary to monitor, oversee and sustain infrastructure. Improving data on service delivery is 3.  critical to strengthening state capacity for sector coordination and oversight. Building sector oversight capacity of ministries responsible for water is the basis for technical assistance to support the transition from emergency to country-led development programming. 210 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations TABLE 13: WATER GP ENGAGEMENT IN COUNTRIES ON THE HARMONIZED LIST OF FRAGILE SITUATIONS FY18 Country ASA LEN SPN GP Collaboration Comment Afghanistan 0.00 145.00 97.80 Agriculture Central African Republic - 18.00 - Energy Congo, Democratic Republic of - 166.00 356.00 SURR Côte d'Ivoire - - 50.00 Guinea-Bissau - 25.00 47.41 Haiti 2.42 20.00 70.00 Iraq 0.15 360.00 - SURR Previous projects closed in FY16/17 Active Water GP Engagement Kiribati - 15.00 - Kosovo - - 24.50 Agriculture Lebanon - - 674.00 Liberia 0.75 - 10.00 Madagascar - SURR Mali - 200.00 130.00 Myanmar - - 100.00 Papua New Guinea - - 70.00 SURR Sierra Leone 0.06 - - Somalia 0.57 - - Agriculture Sudan 0.33 - - West Bank and Gaza 0.32 15.00 74.45 Zimbabwe 0.74 20.00 Burundi Chad Initial scoping mission undertaken Comoros Congo, Republic SURR Djibouti Initial scoping mission undertaken Limited or No Water GP Engagement Eritrea Gambia Libya Initial discussoins with CMU Marshall Islands Micronesia, FS Solomon Islands South Sudan Syria SURR Desk research for ESIA Togo Tuvalu Yemen Health, SURR WASH Poverty disgnostic FY17 Section 4 211 212 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations Conclusion The Road Ahead to Enhance WBG Impact in FCS Fragility, conflict and violence is a top As highlighted in this report, key elements of corporate priority for the World Bank the Bank’s revamped fragility agenda include: Group, and is among the most pressing challenges as we strive to end extreme  xpanding the scope of WBG engagement •E poverty and boost shared prosperity. With to tackle the drivers of fragility throughout 60 percent of the extreme poor expected to the cycle of conflict and violence, from live in these contexts by 2030, we simply must early intervention through recovery and find ways to work more effectively in these reconstruction; difficult environments.  trengthening partnerships with •S In the context of the scale-up in financing humanitarian and development to address FCV under IDA18, the WBG has organizations, as well as with local already acknowledged the need to do more, and national authorities and both at strategic and operational levels. non-traditional stakeholders; Through enhanced knowledge, partnerships,  everaging geo-enabling and other ICT •L financing, and operational solutions, our tools for smart supervision of projects in collective responsibility across the WBG – conflict settings; Regions, Global Practices, Global Themes, as well as IFC and MIGA – is to conduct effective  nhancing our engagement on forced •E programming in fragile contexts, and even displacement through the IDA18 Refugee situations of active conflict. Sub-window and the Global Concessional Financing Facility (GCFF) for middle- The growing interdependence and volatility income countries; of political, economic, and social systems across the world is putting the fragility  hifting to a culture of prevention •S agenda center stage. FCV risks have become and developing an integrated approach increasingly diverse and interlinked, and impact to prevention; both low- and middle-income countries. This demands that we leverage our analytical,  perationalizing the nexus between peace, •O financial, and convening power to better security, and development at the country manage risks for peace and stability. level consistently with Bank’s mandate under its Articles; It also demands recognition that business as usual will not sufficiently move the needle  lacing gender equity at the heart of •P in FCV contexts. The path forward requires a programming, and doing more to combat plan that is equal to the scope of the fragility gender-based violence; and challenge and prioritizes above all realizing the collective aspirations of the world’s most  nhancing the employee value •E marginalized communities. To this end, proposition to attract and retain top the WBG is adapting its strategic priorities performers in FCV settings. to address the root causes of fragility and accelerate development gains in FCV settings. Conclusion 213 This report has highlighted the depth of mplement the humanitarian-security- •I the WBG’s engagement in fragile and development nexus. In insecure areas, conflict-affected situations. It has showcased there is a vital need to partner with groups fragility-related work of each of the six Regions that are active on the ground. Humanitarian and fourteen Global Practices, as well as the organizations often have unparalleled cross-cutting areas where Global Themes work access in conflict zones. The Bank can in partnership with country and Global Practice utilize this access to deliver support to teams to deliver more effectively on the affected populations through partnership ground. It has, moreover, illustrated that our arrangements in which humanitarian renewed focus on FCV cuts across the WBG, actors serve as implementing agencies with IFC and MIGA deploying new resources for World Bank operations. Leveraging and solutions to address the fragility challenge. relationships with security actors such Finally, this report has provided insights on how as UN peacekeeping forces can also the FCV Group itself is strengthening its value help task teams access and do business proposition to enhance support for clients and in conflict-affected areas, as well as partners around the world. maintain protection for WBG staff during emergencies and evacuations. As part of its effort to do business differently, looking ahead, the WBG will  ocus on forced displacement to •F continue to develop new approaches, capitalize on a unique moment for tools, and financing mechanisms to address change. An unprecedented window of the fragility challenge. This innovation opportunity has emerged to promote will be driven at every turn by deepened sustainable socioeconomic solutions for partnership with governments, local authorities, both refugees and host communities development partners, and non-governmental across the globe. This is reflected in the organizations. Amongst other innovations adoption of the New York Declaration presented in this report, the WBG will aim to: and Comprehensive Refugee Response Framework at the 2016 UN General  perationalize a differentiated and •O Assembly Leaders’ Summit, as well as the risk-based approach to FCV challenges, $2 billion of additional resources made and sharpen the focus on prevention. available under the IDA18 Refugee Better identification and monitoring of Sub-window and the continued risks enables proactive efforts to prevent momentum of the GCFF. or mitigate crises. This is particularly critical in FCV contexts, where volatile situations  aximize Finance for development •M can morph quickly into emergencies. The (MFD), catalyze private sector FCV scale-up under IDA18 offers new development, and promote new opportunities to develop strategic, multi- financing solutions for fragility. The WBG sectoral operations to confront key fragility is systemizing its commitment to MFD. risks in the poorest countries. This will entail pursuing private sector 214 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations solutions where they can help achieve This report provides an overview of development goals, and reserving scarce the WBG’s strategic and operational public finance for where it is most needed. engagement in FCV settings, and lays out In operational terms, before investing, the pathways for maximizing impact in the years WBG will consider whether a project can ahead. The contributions in this volume clearly be effectively and sustainably delivered demonstrate increasing institutional focus on by the private sector, and, if not, how addressing the fragility challenge. Equally clear WBG support can improve the investment is the imperative of working across technical climate to crowd the private sector in. and geographic silos, and of taking risks to The MFD approach will be promoted in address grievances, exclusion, and other FCV settings by the IDA18 Private Sector underlying drivers of FCV. Looking forward, Window, which offers $2 billion to crowd- extreme poverty and the curve of fragility are in private investment to low-income inextricably linked, progress on the former countries, with a focus on fragile settings. demands breaking down the latter. For the WBG, this means that achieving the Twin Goals Enhance operational effectiveness. • requires doing business differently to help the This means improving staffing, world’s most marginalized people realize their enhancing flexibility, and more effectively shared aspiration for a better future. deploying new and existing knowledge to assist project teams. It also means drawing on strategic partnerships and technological innovation to enhance project implementation in conflict-affected settings. Third-party monitoring (TPM) and ICT tools such as geo-enabling smart phones offer particularly promising avenues for remote project supervision, monitoring and evaluation, and safeguard enforcement in FCV environments. Conclusion 215 216 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations Annexes IDA18 Policy Commitments for FCV FRAGILITY, CONFLICT AND VIOLENCE Objectives Recommendations/Proposed Actions Product/Target Date RMS Indicators Deepening IDA’s • Adopt a risk-based approach for Target reached at the end of TIER 1 knowledge on identifying fragility beyond those IDA18, with report at MTR.  umber of refugees by •N FCV and learning countries on the FCS harmonized list. country or territory of from operational Deepen the WBG’s knowledge on the • asylum (millions) experience mitigation/prevention of FCV risks through a flagship report drawing on lessons from operational experience TIER 3 and impact evaluations.  umber of IDA projects •N Designing integrated • RRAs inform all CPFs in FCS and Target reached at the end of that address and WBG strategies countries with significant risks of FCV.1 IDA18, with report at MTR. respond to GBV addressing FCV  acetime index in FCS. •F Increase the number of operations • drivers and building targeting refugees and their host institutional resilience communities (baseline: IDA17). Note: Indicators in Increase the number of operations • all three tiers will be in fragile contexts which prevent or disaggregated for FCS respond to gender-based violence, when feasible and including through access to essential applicable (refer to services and livelihood supported Table 2 below for details). activities for women (baseline: IDA16). Improving staffing, Increase staff “facetime” in IDA FCS • Target reached at the end of operational with focus on staff based in-country IDA18, with report at MTR. effectiveness and monitor progress through the and flexibility “Facetime index”.2 Promoting Undertake joint RPBA as openings • Target reached at the end of partnerships for arise for engagement in the aftermath IDA18, with report at MTR. a more effective of conflict in IDA countries. response Enhancing financing Implement the revised IDA resource • Review implementation to support FCS/FCV allocation framework for FCS/FCV to experience of financing enhance targeting of IDA’s exceptional framework for FCV at IDA18 support and financial engagement in MTR and propose adjustments these countries. if necessary. Countries eligible for exceptional IDA allocations to mitigate FCV risks identified on the basis of a cross-country risk scan 1 combining quantitative and qualitative assessments. The proposed “Facetime” indicator will be calculated on the basis of World Bank staff in-country missions as well as 2 international and local staff and consultants posted in the country. Annex 217 FCV: EXPANDING FOOTPRINT AND STRENGTHENING EMPLOYEE VALUE PROPOSITION The WBG Forward Look emphasizes progress in FCV situations as critical to achieving the Sustainable Development Goals and the WBG Twin Goals. With a record $75b replenishment for IDA18, and far-reaching commitments to dramatically scale up FCV work, successful implementation requires an expanded staff presence in FCV situations, demanding a stronger Employee Value Proposition (EVP) that encourages staff to work in and on FCV situations. To this end, a cross-WBG Working Group was established to identify recommendations to strengthen the FCV staffing model and footprint as well as enhance the employee value proposition for FCV staff. The Working Group recommendations addressed four areas: 1) Skills Mix and Global Footprint; 2) Compensation, Benefits, Rewards & Incentives; 3) Talent, Performance & Career Management; and 4) Overall Corporate Support. General principles as well as recommendations were approved by World Bank Management. During FY18, work continued to increase the footprint, ensure adequate staffing, and strengthen the EVP through enhanced benefits for staff working in/on FCV situations and more deliberate focus on career management. The Bank has met its initial global footprint commitment to hire more staff in FCV, and is on target to meet the overall commitments to strengthen FCV staffing under IDA18. Much effort has also been geared towards strengthening the EVP and aligning benefits to support and adequately reward WBG staff working in/on FCV locations, with a focus on country office staff. COMPENSATION, BENEFITS, REWARDS & INCENTIVES Hazard & Fragility Pay (HFP) has been designed to benefit Country Office appointed staff in FCV locations effective October 1, 2017. An FCV-specific criterion was included in the VPU Team Awards Program, with 62% of all awarded teams including an FCV criterion in FY17. Out-of-Country Care (OOCC) has been enhanced to improve access to appropriate medical care outside a staff member’s duty station when appropriate care is not available in the duty station. TALENT, PERFORMANCE & CAREER MANAGEMENT & LEARNING Next Assignment Planning for returning FCV Staff by end of September 2018 has been finalized and confirmed, and staff have been informed accordingly of their new assignments. Newly designed WBG Corporate FCV Onboarding was delivered in Egypt in December 2017. This was the first-of-its-kind onboarding program pilot customized for FCV-based staff. The program includes the following modules: WBG and its key business directions; FCV strategic priorities, vision and work program; WBG operations; WBG values and employee life cycle at the WBG; and corporate support to WBG talent working in FCV locations. This program also integrates content on influencing skills into various modules throughout the week and a field project visit. 218 Maximizing the Impact of the World Bank Group in Fragile and Conflict-Affected Situations Newly designed “Leading in Fragility” session for supervisors working in/on FCV, and “Strengthening Personal Leadership Skills” sessions were delivered in Mozambique in January 2018. Partnership with FCV CCSA and IFC FCS network. To better reach out to FCV country offices and to increase accessibility of learning opportunities for FCV staff, WBG units partnered in identifying and prioritizing learning opportunities for WBG FCV staff. A number of leadership, learning and mentoring programs have been identified and will be delivered through FY18. Peer coaching for FCV supervisors. The initiative provides meaningful, targeted and cost-effective peer coaching to FCV-based supervisors by alumni of the Corporate Leadership Program, with the goal to increase the performance, self-awareness, and engagement of the supervisors with their teams. OVERALL CORPORATE SUPPORT Staff wellbeing and health. The psychosocial support pilot program in Kabul has been operational for one year. Two psychologists have undertaken on-site support missions; videoconference trainings and workshops; and resiliency briefings, individual counseling (face-to-face and via Skype), and critical incident responses to all staff based in the Afghanistan office. They have facilitated the translation of the Health Services Counseling Unit newsletter into Dari and Pashto, and developed packages of written materials for visiting mission and country office staff. HR Support. For ease of access and quicker service, a priority FCV call line in HR Operations set up for quicker benefit processing for staff relocating to FCVs. Safety and Security. The Bank put in place the Framework of Accountability for WBG Security Risk Management System (WBG Directive) to clarify roles/responsibilities, and expanded teams of field-based Security Specialists. Additional security training courses have been offered in FY18 to accommodate growing demand. LOOKING FORWARD Looking forward through FY18 and onwards, the Bank will focus on: a) ensuring that necessary mechanisms are in place to strengthen next assignment planning; b) advancing the work to monitor the recruitment, deployment, development, promotion, and careers; and c) determining how to measure FCV experience to identify and credit staff who have it. Annex 219 Published by 2018 | Fragility, Conflict, and Violence www.worldbank.org/fcv