NOTES 80644 Child & Youth Development Children and Youth investments in the World Bank Portfolio, 2000-2010 The World Bank’s children and youth development portfolio grew five-fold over the past decade, from $949 million in fiscal year 2000 (FY00), defined as from July 1st 1999 to June 30th 2000, to over $4.8 billion in FY10, with a sharp increase during the post-crisis years, FY09 and FY10. This trend supports the Bank’s message that: “Allocating sufficient public resources to child and youth development, […] is a sine qua non for a country’s development and competitiveness�.1 All the regions that the Bank serves and the 16 thematic sectors include child or youth development projects in their portfolios. Investments by region, which include both Bank loans and grants, are the largest in South Asia and Latin America, totaling over half of the Bank’s child and youth development investment. The education sector dominates through its portfolio on early child development, basic education and training. But while 80% of all investment is in the education sector, 60% of projects are managed by other sectors. This note presents a picture of World Bank investments targeted to children and youth for the period FY00 to FY10. It presents trends in lending and grant amounts and the number of projects across regions and sectors. It builds on a similar note published in 20072 by developing a standard methodology to collect and analyze data and by tracking trends for investments in children, as well as youth. There are over 3 billion people under the age of 24 in the world today, comprising 47% of the world’s population. Nearly 90% live in developing countries and the challenges they face—poor health, low quality education, lack of marketable skills, THE WORLD BANK high rates of unemployment, early pregnancy, social exclusion, and the highest rates of new HIV/AIDS infections—are costly to themselves and to society at large. Country demand for policy advice on how to tap the enormous potential of the world’s children and youth is large and growing. This series aims to share research findings and lessons from the field to address these Volume IV, Number 3 important cross-sectoral topics. March 2011 www.worldbank.org/childrenandyouth The World Bank’s investments in Figure 1: World Bank Investments and projects in children and children and youth have increased youth, FY00-10 continuously – especially in the post- Amount in million US$ # projects crisis period 5000 150 4500 125 Since abilities and qualities built during childhood and youth 4000 largely determine their adult lives, effective investments in young 3500 100 3000 people provide important returns not only to people themselves 2500 75 and their immediate families—but to societies as a whole. Country 2000 governments in all the regions are increasingly requesting Bank 50 1500 support in addressing issues facing young people. 1000 25 In FY10, the Bank provided loans and grants to 55 countries 500 for investments helping children and youth, totaling more than 0 0 $4.8 billion. This is equivalent to 8% of total Bank investment FY00 FY01 FY02 FY03 FY04 C&Y Investments (left axis) FY05 FY06 FY07 FY08 FY09 # of C&Y Projects (right axis) FY10 in FY10. For example, projects with children, youth, or both Note: Numbers reflect the fiscal years when projects are approved. The lumpy children and youth components approved in FY10, include: nature of Bank investments - one or two big projects approved in one year - can lead to big swings in investment levels. For example, in FY04 the Bank approved n In Kenya, a $60 million Bank-financed project is increasing the Bolsa Familia project in Brazil, of which $551.5 million is dedicated to children through a conditional cash transfer program. This project value caused a big jump access to youth-targeted temporary employment programs in investment amount for that year. and improving youth employability. Investments targeted toward children, in terms of both value n In Mexico, a $700-million loan is improving the internal and number of loans and grants, has consistently been greater efficiency of upper secondary education and its responsiveness than investments in youth. In FY10, child-specific investments to the labor market. reached over $2.6 billion, spread across 63 projects; investments n In Laos, the Bank is financing nearly $1 million (i.e. 12% of targeting youth amounted to $2.2 billion, with 49 projects (Figure the entire loan) to develop the next generation of the PDR’s 2). During the past decade, an average of 70% of all projects hydropower and mining workforce. dedicated to children and youth had a child-specific component while half of them included a youth-specific component. In terms n In Sierra Leone, a $20 million grant project is increasing of investment, however, the gap has been decreasing, with youth the utilization of a package of essential health services by specific investment reaching 46% of the total child and youth pregnant and lactating women and children under the age of portfolio in FY10 (up from 16% in FY00). five. Grant-funded investments directed toward children and youth n In Rwanda, the Bank is spending $5.4 million (out of $8 consistently increased over the decade. While investments million for the entire project) for child ex-combatants. The toward children and youth are largely covered by Bank loans, project supports the effort to demobilize members of armed over 92% in FY10, the share of grants increased from 1.3% in groups and members of the Rwanda Defense Force and FY00 to 7.4% in FY10. This development reflects the increased provide them with socioeconomic reintegration support. use of Trust Funds, such as the Education Fast Track Initiative (FTI), or the Japan Social Development Fund (JSDF). n In Nepal, the Bank is financing $123.5 million (95% of the entire loan) to ensure equitable access and quality of Figure 2: Number of World Bank projects with Children and/or basic education for all children in age group 5-12, prepare Youth components – FY00-10 pre-school-age children for basic education, and improve equitable access for youth to secondary education. # of projects 70 Despite yearly fluctuations, child- and youth-specific investments increased continuously during the period FY00- 60 FY10, to become 5 times higher in 2010 than in 2000 (Figure 50 # of projects with children component 1). The Bank has invested $25.4 billion in children and youth development over this period. The big jump in investment in 40 FY09 and FY10 reflects the Bank’s post-crisis investment trends, 30 # of projects with youth with a steep increase in the value of loans and grants rather than component in the number of projects. Overall, children and youth as share 20 of total Bank investment remained constant during the period 10 FY00-FY10, at approximately 8% on average. 0 Reflecting a steadily growing client demand, the past decade has FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 also seen a tripling in the number of projects targeting children Note 1: Numbers reflect the fiscal years when projects are approved. and youth, from 32 projects in FY00 to 100 in FY10 (Figure 1). Note 2: A project can include both children and youth components. It is there- fore double counted: as “project with children component� and as “project with youth component�. 2 Child & Youth Development Notes | March 2011 The South Asia and Latin America about half the amount. MENA and ECA represent a fair share of the number of projects with respectively 9 and 6 projects in FY09/ regions lead investment for children FY10. and youth development The past 10 years saw a shift in the regional composition of South Asia (SAR) and Latin America and Caribbean (LAC) child and youth investments. While the Latin America region each invested, on average, more than $1.1 billion annually in was leading investments during the first half of the decade, it was FY09/FY10, equivalent to 56% of total Bank investment amount overtaken by the South Asia region in the most recent years. This on children and youth. East Asia and the Pacific (EAP) and Africa is mainly driven by large child-focused loans that have increased follow; sharing 22% and 17% of children and youth oriented substantially in South Asia since 2007. For example, in FY09, the investments. The Middle East and North Africa (MENA) and Bank spent almost $350 million to improve availability of Polio Europe and Central Asia (ECA) represent only a very small share vaccine for children in India (out of a $520 million project). In of overall investment (Figure 3). FY10, a $35 million project is reducing the number of out-of- In terms of number of projects, however, Africa leads with an school children through improved access, quality and efficiency average of 32 projects in FY09/FY10. LAC and SAR follow, with in primary education in Bangladesh. Children and Youth investments are Figure 3: World Bank Investment in Children and Youth by spread across multiple sectors Regions – Average FY09 and FY10 More than a dozen World Bank sectors support child and youth development. In FY10, while 80% of investment for child and youth development, in value, was done by the education sector, AFRICA 17% the other 20% was shared by health, nutrition and population; SOUTH ASIA (32 projects) social protection; social development; agriculture and rural 30% development; urban development; public sector governance; (15 projects) poverty reduction; economic policy; financial management; EAST ASIA energy and mining and environment sectors (Table 1). AND PACIFIC 22% MIDDLE EAST (12 projects) This multi-sectoriality is even stronger when looking at the AND LATIN number of projects per sector: In FY10, only 40% of the total NORTH AMERICA AND AFRICA CARIBBEAN number of projects toward children and youth were in the 2% 26% (17 projects) EUROPE AND education sector. Almost 18% fell under the health, nutrition (9 projects) CENTRAL ASIA 3% and population sector and another 18% in social protection. (6 proejcts) Moreover, 16% of projects were in the World Bank Sustainable Note 1: Numbers reflect the fiscal years when projects were approved. Development Network (SDN) and 7% in the Poverty Reduction Note 2: Average FY09-FY10 is to account for lumpiness of numbers. and Economic Management (PREM) Network. Table 1: Projects with Children and Youth components (FY00-FY10): Summary by sectors (investments in million US$)* FY09 FY10 Bank Sector Investment # of Projects Investment # of Projects Network Education 1943.2 34 3896.3 40 HDN Social Protection 1043.2 13 332.5 18 HDN Health, Nutrition and Population 597.3 13 326.9 18 HDN Economic Policy 242.7 5 11.7 3 PREM Social Development 3.6 3 179.8 6 SDN Agriculture and Rural Development 38.0 3 48.6 4 SDN Financial and Private Sector Development 38.5 2 0.0 0 FDP Poverty Reduction 10.0 1 13.5 1 PREM Public Sector Governance 3.4 1 17.5 3 PREM Urban Development 0.0 0 20.0 1 SDN Gender and Development 5.2 2 0.0 0 PREM Financial Management 0.0 0 3.6 1 OPCS Environment 0.0 0 1.9 2 SDN Energy and Mining 0.2 1 1.0 1 SDN Operational Services 0.5 1 0.0 0 OPCS Transport 0.0 0 0.1 2 SDN Total 3925.8 79 4853.2 100 * Sectors sorted by accumulated investment, FY09 and FY10 Child & Youth Development Notes | March 2011 3 Conclusion increasingly understands that quality investment in an early age generates returns to society through higher economic growth, The World Bank is on the right path to effective child and reduced social costs, and increased quality of life for all. Child and youth development, both in terms of increased commitment youth development is therefore a crucial ingredient for effective and in terms of reaching across the many actors, markets, and development strategies and a good use of the Bank’s investment institutions to give young people the opportunities to become resources to help governments achieve their development goals. skilled, healthy, and productive members of society. The Bank Methodology to create the database of children and youth investments Since no Bank sector or thematic code allows generating automatic reports on the Bank’s investments dedicated to children and youth (C&Y), the objective of our methodology is to (i) track the Bank’s investments in children and youth with as much consistency as possible with portfolio monitoring of other HDN units, and (ii) be able to reproduce the report easily in future years. Because of the diversity of projects targeting children and youth - stand-alone projects, projects with one or several components dedicated to children and youth, their multi- sectoriality - the methodology requires the combined use of several internal World Bank tools. Data collection and definition of the USD amounts dedicated to children and youth, for each project: Step 1 w In the Operations Portal (OP): Search for projects with specific children and/or youth-related words or expressions as part of their title: “child(ren)�, “youth�, “young people�, “young men�, “young women�, “adolescen(ce/t)�, “ECD�, “maternal� and “orphan�. These projects are considered as stand-alone children and youth projects (100% dedicated to C&Y) and we assign the amount of the loan or grant for C&Y as equal to the total commitment amount for the project. Since most projects are not stand-alone children and/or youth projects, and many projects include children and/or youth components, additional criteria were established to identify and select these components within larger projects. Step 2 w In the Business Warehouse (BW): Every project with components in specific Education subsectors - pre-primary education, primary education, secondary education, tertiary education and vocational training - or in the “child health� theme, are included in the C&Y database. For each project, the USD amount dedicated to C&Y is equivalent to the amount dedicated to these education subsectors or to the “child health� theme. Step 3 w In the OP: The list of “Education projects� for C&Y is completed by including projects with “basic education�, “primary education�, “secondary education�, “literacy�, “school� as part of their title name. These additional education projects targeting children and/or youth may have been missed because they were classified in the “General Education� subsector (too broad to be entirely included in our database). Using the same method, we complete our list with projects including “nutrition� as part of their title – as we consider these projects as targeting infants and children (here again, there is no subsector/theme, narrow enough to consider using BW ). Step 4 w In the OP: The rest of the data on children and youth is obtained using the following key word search: “conditional cash transfer� and “child soldiers�. Because the “search by keyword� in the Operations Portal can sometimes be misleading, we check Project Appraisal Documents (PADs) manually, to confirm that the selected projects do have a child or youth component and evaluate its amount. Step 5 w Finally, the database is completed with the list of children and youth related projects identified by the Regional Focal Points. Share between child and youth investments: i) Projects counted as targeting children: Projects including the following expressions as part of their title are considered child-focused: “child(ren)�, “ECD�, “maternal�, “nutrition� and “orphan�. Projects with pre-primary or primary education, “child health�, or child soldiers components are also counted toward children. ii) Projects counted as targeting youth: Projects with “youth�, “young people�, “young men�, “young women�, “adolescen(ce/t)� as part of their title name are considered youth-focused projects. Projects classified in secondary, tertiary and vocational training subsectors are also considered to target youth. Conditional Cash Transfer projects, as well as additional projects listed by regional focal points are checked carefully using PADs to determine their respective target group. References 1 Hempel, K. and Cunningham, W. (2010), Investing in your country’s children and youth today: Good policy, smart economics; Child and Youth Development Notes, World Bank 2 Semlali, A. and Osika, T. (2009), Youth Investments in the World Bank Portfolio; Child and Youth Development Notes, World Bank Naudeau, S. et al. (2010), Investing in Young Children: An ECD Guide for Policy Dialogue and Project Preparation, World Bank World Bank (2005), Children and Youth: A Resource Guide for World Bank Staff, Washington DC World Bank (2006), World Development Report 2007: Development and the Next Generation, Washington DC Children & Youth Unit, Human Development Network, The World Bank www.worldbank.org/childrenandyouth THE WORLD BANK This note was prepared by Ingrid Lefebvre-Hoang (Consultant, HDNCY) and Wendy Cunningham (Coordinator, HDNCY). The authors wish to thank Kevin Hempel (Consultant, HDNCY) and Antony Thompson (Sector Manager, HDNGA) for their valuable comments. Photo credit: Dominic Sansoni. The views expressed in this note are those of the authors only and do 4 not necessarily reflect the view of the World Bank. Child & Youth Development Notes | March 2011