99008 © 2015 The World Bank Group 1818 H Street, NW Washington, DC 20433 Telephone: 202-473-1000 Email: un-wbpartnership@worldbank.org World Bank Fragility, Conflict and Violence website: www.worldbank.org/fragilityandconflict UN-WB Fragility and Conflict Partnership Trust Fund website: https://undg.org/home/guidance-policies/transitioncrisis/partnerships/un-world-bank-fragility-and- conflict-partnership-trust-fund/ All rights reserved. This paper is a joint product of the Steering Committee of the UN/WB Fragility and Conflict Partnership Trust Fund. The United Nations and World Bank Group do not guarantee the accuracy of the data in- cluded in this work. The views expressed herein are those of the authors and do not necessarily repre- sent the views of the World Bank, its Executive Directors or the governments they represent. Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The World Bank Group encourages dissemina- tion of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; telephone 978-750-8400; fax 978-750-4470; Internet: www.copyright.com. Cover: UN Photo/JC McIlwaine “ WE NEED AN APPROACH THAT BREAKS DOWN INSTITUTIONAL BARRIERS AND JOINS UP POLITICAL, SECURIT Y, DEVELOPMENT AND HUMANITARIAN EFFORTS THROUGHOUT THE REGION. NOW IS THE “ TIME FOR ACTION. — United Nations Secretary-General Ban Ki-moon Joint UN/WBG Visit to the Sahel November 2013 PREFACE & ACKNOWLEDGEMENTS This resource note aims to help United Nations (UN) staff to better understand the World Bank Group (WBG) and work more effectively with it in fragile and conflict-affected situations (FCS). It is an introductory overview that draws on existing guidance and policies, and compiles—but does not substitute for—key resources that should be consulted directly in particular cases. For background on the nature and extent of UN–WBG partnership in FCS, including perceptions of the cultural and other challenges faced, staff should consult the 2013 Review of the UN–WB Partnership in Fragile and Conflict-Affected Situations undertaken by S. Demetriou and M. Morrison. The guide was written by Mary Morrison and Shani Harris with support from the UN–World Bank Fragility and Conflict Partnership Trust Fund. The views expressed are those of the authors and do not necessarily represent the views of the United Nations or the WBG or their member or shareholder governments. The team is grateful to the following United Nations and WBG staff for their comments and contributions to this document and to a parallel version prepared for WBG staff: Betsy Alley, Sharif Baaser, Anja Bille Bahncke, Laura Bailey, Dominique Bichara, Lydiah Kemunto Bosire, Larry Bouton, Henk-Jan Brinkman, Marta Cali, Sofia Carrondo, Jeff Culver, Spyros Demetriou, Peter Rhodes Easley, Manuela Francisco, Clare Gardoll, Diego Garrido, Luigi Giovine, Steen Hansen, Bernard Harborne, Ella Humphry, Henriette von Kaltenborn- Stachau, Sima Kanaan, Joanna Kata-Blackman, Henriette Keijzers, Markus Kostner, Christian Lotz, Jeanine Manley, Arun Manuja, Donald Mphande, Felipe Muñevar, Madalene O’Donnell, Richard Olowo, Reidun Otteroy, Claudia Pardiñas Ocaña, Vincent Pasquini, Nadia Piffaretti, Wolfhart Pohl, Vikram Raghavan, Joya Rajadhyaksha, Sonia Rodrigues da Fonseca, Tihomir Stucka, Ayaka Suzuki, Donna Thompson, Oliver Ulich, Maria Vannari, Puteri Watson, Douglas Webb and Asbjorn Wee. In addition to sources cited in the text, the document draws heavily on information and documents on the United Nations and WBG websites, including the World Bank Group A to Z and the partnership review mentioned above. The note is intended to be used in its electronic form and contains links to relevant documentation as well as to useful examples of the tools and methods described. These links appear as orange text. iv TABLE OF CONTENTS Preface & Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v Acronyms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 I. The UN-WBG Partnership in FCS: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Rationale and Frameworks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Roots in reconstruction, with a strengthening focus on poverty . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Five institutions make up the World Bank Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 II. The World Bank Group: Activities, Organization and Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Increasing emphasis on fragility, conflict and violence, with a partnership approach . . . . . . . . . . . . 6 Performance-based system allocates IDA resources, with additional funds for FCS . . . . . . . . . . . . 8 The WBG finances three main types of projects for client governments . . . . . . . . . . . . . . . . . . . . . 8 Reorganization strengthens thematic focus, reduces regional divisions . . . . . . . . . . . . . . . . . . . . . 10 Headquarters structures pursue strategic dialogue, support partnership . . . . . . . . . . . . . . . . . . . . . 12 III. United Nations-World Bank Coordination and Communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 WBG organization, geography determine key contacts on countries, themes . . . . . . . . . . . . . . . . . 13 Support for national strategies, coordination is starting point for United Nations–World Bank Group alignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 IV. Collaboration on Analysis and Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Cooperation on United Nations and WB assistance frameworks should start upstream . . . . . . . . . 16 Joint analysis on priority FCS themes paves way for further collaboration . . . . . . . . . . . . . . . . . . . . 17 Supporting implementation of development activities in difficult environments . . . . . . . . . . . . . . . 19 V. Opportunities For Collaboration In Different Country Contexts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Planning for an end to conflict: watching briefs and peace processes . . . . . . . . . . . . . . . . . . . . . . . 21 Coordinating post-conflict response . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 WBG re-engagement and debt relief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Developing multi-donor financing recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Rapid-onset crises and other deterioration in local conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Transitions out of peacekeeping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Parallel activities within common programmatic frameworks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 VI. Structuring and Financing Collaboration on Projects and Programmes . . . . . . . . . . . . . . . . . . . . . . . 26 United Nations implementation of project activities for governments . . . . . . . . . . . . . . . . . . . . . . . 28 World Bank contracting of United Nations agencies for governments in exceptional circumstances 29 United Nations implementation of World Bank activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 United Nations funding of World Bank activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Annex: Main Contacts for United Nations-World Bank Group Partnership Support . . . . . . . . . . . . . . . . 32 1 ACRONYMS* CAR Central African Republic ITF Integrated Task Force CAS Country Assistance Strategy (United Nations) CPF Country Partnership Framework IMF International Monetary Fund CCSA Cross-Cutting Solutions Area MDG Millennium Development Goal CD Country Director MDTF Multi-Donor Trust Fund CM Country Manager MIGA Multilateral Investment Guarantee Agency CMU Country Management Unit MPTFO Multi-Partner Trust Fund Office CPIA Country Policy and Institutional (United Nations) Assessment OP Operational Policy DOCO Development Operations Coordination Office (United Nations) PBC Peacebuilding Commission DPKO Department of Peacekeeping PCNA Post-Conflict Needs Assessment Operations (United Nations) PDNA Post-Disaster Needs Assessment ECOSOC Economic and Social Commission PRSP Poverty Reduction Strategy Paper (United Nations) RETF Recipient-Executed Trust Fund ED Executive Director SMT Security Management Team ESW Economic and Sector Work (United Nations) FCS Fragile and Conflicted-Affected SPF State and Peacebuilding Fund Situations SRF Strategic Results Framework FCV Fragility, Conflict and Violence UN United Nations FMFA Financial Management Framework UNDAF United Nations Development Assistance Agreement Framework FPA Fiduciary Principles Accord UNDG United Nations Development Group GP Global Practice UNDP United Nations Development Programme IBRD International Bank for Reconstruction UNICEF United Nations Children’s Fund and Development VPU Vice-Presidential Unit ICSID International Centre for the Settlement WB World Bank (IBRD and IDA) of Investment Disputes WBG World Bank Group IDA International Development Association WDR World Development Report IFC International Finance Corporation * World Bank-specific acronyms are listed in BLUE. 2 I. THE UN-WBG PARTNERSHIP IN FCS: RATIONALE AND FRAMEWORKS 1. Strong partnerships and shared expertise 3. The SRF also draws on the conclusions of a are essential for delivering results in fragile and 2013 Review of the UN–WB Partnership in FCS. That conflict-affected situations (FCS), in which political, review found that despite considerable progress security, humanitarian and development activities and many achievements, cooperation had not must be integrated to promote sustainable peace been systematic or deep enough and institutional and development. Close collaboration between incentives for collaboration needed strengthening. the United Nations and the World Bank Group It also found that institutional differences and promotes a more effective and sustainable constraints, insufficiently understood, remained a international response in these contexts by linking challenge for both organizations. It recommended diverse United Nations activities and capacities with measures to improve understanding within each the WBG’s financing, longer-term development institution of the other and of how to collaborate perspective and economic and thematic expertise, more effectively. in addition to the mobilizing power of both as multilateral institutions. 4. Since 2012, close cooperation between the United Nations Secretary-General Ban Ki-moon 2. With this understanding, the 2008 UN– and WB Group President Jim Yong Kim has given WB Partnership Framework for Crisis and Post-Crisis the UN–WBG partnership in FCS renewed energy, Situations sets out principles for engagement with support from member states. The two leaders (Box 1) in natural disasters as well as FCS. Its made joint visits to the Great Lakes and Sahel Operational Annex, agreed by the United Nations regions (2013) as well as the Horn of Africa (2014), Development Group (UNDG) and the WB, emphasizing their commitment to cooperation establishes additional guidelines for coordinated between the two institutions in support of national response. Building on these commitments, the and regional efforts. United Nations and WB adopted a Strategic Results Framework (SRF) for UN–WB Partnership in FCS 5. The overall partnership in FCS and beyond (2014–2015). The SRF aims to i) improve regional is governed by a 1947 agreement between the and country-specific collaboration; ii) strengthen United Nations and the International Bank for institutional cooperation and communication Reconstruction (IBRD), the original entity of the on policy and thematic issues; and iii) enhance World Bank. This agreement made the IBRD an operational policies, frameworks and tools to Independent Specialized Agency of the United facilitate cooperation and cross-financing. Nations system, while recognizing it as an 3 BOX 1: PARTNERSHIP FRAMEWORK PRINCIPLES FOR ENGAGEMENT IN CRISIS SITUATIONS •• Our roles and mandates differ, but our efforts are interdependent and must be mutually reinforcing. •• Integrated efforts are particularly important in working with national authorities and partners to strengthen national capacity for effective prevention and response and to support the implementation of national recovery and development strategies that encompass political, security, human rights, economic and social dimensions within the framework of the rule of law and good governance. •• We need to be flexible to respond to different country needs, taking into consideration the country context, national priorities, United Nations–mandated tasks, appropriate division of labour and the role of other regional and international partners. •• Regarding humanitarian action by the United Nations and its partners, the recognized humanitarian principles of neutrality, impartiality and independence will be respected. international organization with its own mandate, Nations system and a member of key structures governance, staffing structure and operational such as the Chief Executives Board and Country independence. While the WBG holds observer Teams. Both institutions are guided by the status in the UNDG and is not part of the General Millennium Development Goals (MDGs) and Assembly’s Quadrennial Comprehensive Policy collaborate on the Post-2015 and financing for Review (QCPR) of United Nations operational development processes, among other issues. activities for development, it is part of the United 4 II. THE WORLD BANK GROUP: ACTIVITIES, ORGANIZATION AND FINANCING ROOTS IN RECONSTRUCTION, WITH A 8. In addition to providing financing for STRENGTHENING FOCUS ON POVERTY development, the WBG undertakes a range of technical assistance and knowledge activities for 6. The IBRD, along with the International client countries as a public good and to support Monetary Fund (IMF), was founded at the Bretton the work of the WB. The two main categories Woods Conference in 1944. The conference are (i) economic and sector work (ESW), which laid out a framework for economic cooperation involves original analysis and is intended to inform and development for the post–World War II government policies and programmes; and (ii) period, with IBRD to address reconstruction and technical assistance, which involves direct support development needs and the IMF to promote a to help external clients in their efforts to implement more stable and prosperous global economy, reforms or strengthen institutions. underpinning the prevailing system of fixed exchange rates. Though their work has evolved in response to new challenges, the WB continues to FIVE INSTITUTIONS MAKE UP THE WORLD concentrate on long-term economic development BANK GROUP and poverty reduction, while the IMF focuses on macroeconomic issues. The institutions work 9. The World Bank Group now consists of closely together and are headquartered next to five institutions. The term “World Bank” refers to each other in Washington, DC. just two of these: the IBRD and the International Development Association (IDA), which share 7. The WBG sharpened its poverty focus the same staff and headquarters and follow the in 2013 with the adoption of two new goals to same policies and processes in supporting project guide its assistance. The first is to end extreme preparation and implementation. poverty by 2030, reducing the share of the global population living on less than $1.25 a day •• IBRD provides loans, guarantees, risk manage- to less than 3 percent. The second is to promote ment products and analytical and advisory ser- shared prosperity by fostering income growth vices to middle-income countries and credit- for the poorest 40 percent in every developing worthy poorer countries. The original institution country. The strategy emphasizes partnerships, of the WBG, IBRD is a self-sustaining business an integrated “one World Bank Group” approach and does not rely on contributions from mem- and more effectively channelling knowledge into ber governments (“shareholders”) to cover its solutions. annual administrative budget. It raises most of 5 its funds through bond issues on international INCREASING EMPHASIS ON FRAGILITY, CON- financial markets. IBRD’s financial strength and FLICT AND VIOLENCE, WITH A PARTNERSHIP triple-A credit rating allow it to raise funds inex- APPROACH pensively, while lending at favourable rates to 10. In recent years, the WBG has moved its clients. Income from the margin on lending beyond reconstruction to address a range of fragility and investment of IBRD’s capital covers oper- and conflict issues, understanding that economic ating expenses, with the surplus used to build and social stability and human security are pre- reserves and allowing annual transfers to IDA. conditions for sustainable development, and that Since 1946, governments have paid in only $14 development and reconstruction activities can billion in capital to IBRD to generate more than promote stability and security, and at a minimum $500 billion in loans. IBRD made $18.6 billion should not make these worse. The adoption of of financing commitments and disbursed $18.8 the twin goals requires the WBG to sharpen its billion in the fiscal year (FY) through June 2014. focus on fragility, conflict and violence, as these •• IDA is the WBG’s fund to provide concessional exacerbate poverty and hamper development financing through credits and grants to govern- progress for the roughly 1.5 billion people living in ments of the poorest countries, including most the countries most affected. The WBG’s 2011 World FCS. Established in 1960, IDA is one of the Development Report (WDR) on Conflict, Security and largest sources of assistance for the world’s Development called for a paradigm shift in the work 77 poorest countries, 39 of which are in Afri- of the WBG and other international partners in ca. Donors replenish IDA every three years. FCS. It found that building capable and legitimate The 17th replenishment round (IDA 17) raised institutions, ensuring citizen security and justice, a record $52 billion for FY15–17 . In FY14, IDA and creating jobs are essential to reducing committed $22.2 billion and disbursed $13.4 violence—and providing optimal support requires billion in 242 new operations. Of these com- better coordination among external actors. It mitments, 12 percent was on grant terms. underscored that the WB should work more closely •• The International Centre for Settlement of In- with other partners, in the spirit of the High-Level vestment Disputes (ICSID) provides internation- Fora on Aid Effectiveness (Paris Declaration, Accra al facilities for conciliation and arbitration of Agenda for Action and the Busan Outcome). This investment disputes. is particularly important for international agencies that possess expertise or work on areas that the •• The International Finance Corporation (IFC) fo- WB does not, including those that are outside the cuses on the private sector, through financing WB’s mandate. Strengthening the links between investment, mobilizing capital in international security and development is a priority. financial markets and providing advisory ser- vices to businesses and governments. 11. In the ongoing restructuring of the WBG, •• The Multilateral Investment Guarantee Agency Fragility, Conflict and Violence (FCV) has been (MIGA) promotes foreign direct investment by identified as one of five priority cross-cutting offering political risk insurance (guarantees) to themes for the work of the institution (see paragraph investors and lenders. 29), supported by a dedicated unit in place since 6 July 2014. The FCV Group, based in Nairobi and 72 and fund other aspects of demilitarization, Washington, has evolved from the Global Center demobilization and reintegration programmes). on Conflict, Security and Development (CCSD). The The WB’s Articles of Agreement also prohibit FCV Group aims to enhance WBG support in FCV– it from interfering in the domestic affairs of a affected countries through the development of member or from questioning the political character innovative practices and strengthening institutional of a member; only economic considerations are expertise and capacities. The unit manages key relevant to its decisions. Thus, the WB does not institutional partnerships and trust funds for FCV operate in the territory of a member without its issues, including the UN–WB Fragility and Conflict approval. Partnership Trust Fund, the State and Peacebuilding Fund, the Korean Fund for Economic and Peace- 14. OP2.30 recognizes the centrality of building Transitions and the Global Program on partnership, particularly in conflict-affected Forced Displacement. countries, where the WB works within its mandate in close partnership with “bilateral and multilateral 12. WB Operational Policies increasingly agencies, particularly the United Nations and establish a differentiated approach to fragile states other international and regional institutions that and promoting conflict-sensitivity in WB assistance. have the major responsibility for peacemaking, The WB’s Operational Policy on “Development peacekeeping and security, humanitarian Cooperation and Conflict” (OP2.30) establishes assistance and reconstruction and development, ” that in countries vulnerable to conflict the WB as well as with government authorities, civil society should “promote economic growth and poverty and the private sector. reduction through development assistance that minimizes potential causes of conflict, ” while in 15. In recognition of the importance of the countries actually in conflict it should “(i) continue private sector in addressing the needs of those efforts at poverty reduction and maintenance of living in FCS, IFC has made economic growth and socioeconomic assets where possible; (ii) provide, increased employment in these areas a priority. where requested by its partners, information Together with the WB, MIGA, other development on the socioeconomic impacts of emergency partners and its clients, IFC works to stimulate assistance; (iii) analyse the impact of conflict on private investment and growth and meet acute economic and social development; and (iv) prepare challenges to private sector development. for Bank assistance as opportunities arise. ” Alleviating the barriers to business growth— specifically access to electricity, access to finance, 13. OP2.30 makes clear the limits of the access to markets, enabling environments for WB’s mandate, which is “to finance and facilitate business and transparency and rule of law— the reconstruction and development of its underpins IFC’s approach in FCS. By providing member countries. ” The WB does not engage financing and advisory services and working with in “peacemaking or peacekeeping” or provide governments to improve business environments, direct support for humanitarian relief or disarming IFC can help reduce those barriers. IFC’s activities combatants. (It does, however, support rapid in FCS have grown significantly in recent years. response to crises, described in paragraph During FY14, IFC’s activities in FCS included 7 investments of $638 million and advisory services ” as determined by a joint IMF–WB Debt distress, of $44 million. Sustainability Analysis exercise, which weighs a country’s debt burden against its capacity to 16. Supporting investments in fragile and sustain it, judging from its policies and institutions. conflict-affected areas remains a strategic priority for MIGA. Over the years, MIGA has 18. Exceptional IDA resources are allocated to played an important role in conflict-affected and countries categorized by the WB as post-conflict fragile economies, providing coverage where (based on estimates for population killed or other insurers are unwilling or unable to go. The displaced, or physical damage) or those that are presence of a MIGA guarantee can help make an re-engaging with the WB after a prolonged period. investment more attractive to potential investors Both regimes will be replaced over FY15–17 and lenders by lowering its overall risk profile. with a new system of exceptional allocations for Equally important, the projects supported by MIGA “turnaround” situations. This will provide for more create confidence among the international and flexible allocations and may also accommodate a domestic business communities, helping to attract broader range of countries emerging from conflict even more investment and encouraging the return or political uncertainty, including those that are of flight capital. not strictly post-conflict or re-engaging. The new system is still being developed. PERFORMANCE-BASED SYSTEM ALLOCATES 19. The WB also manages donor resources IDA RESOURCES, WITH ADDITIONAL FUNDS through trust funds, primarily to support client FOR FCS government programmes (Recipient-Executed 17. From IDA’s inception, the demand for Trust Funds, or RETFs). Trust fund commitment these concessional resources has outstripped reached $4.3 billion in FY14, with disbursements of supply. IDA funds are therefore distributed among $3.3 billion. Trust funds, whether country-focused, countries—and the eligibility of those countries as with the Afghanistan Reconstruction Trust Fund, determined—based on specific criteria and rules. A or thematic, such as the Global Partnership for performance-based allocation (PBA) system is used Education, are a major source of FCS funding. to set each country’s annual core allocation.  This limits the scope for discretionary allocations by 20. Further information on the WB’s funding WB management, thus ensuring transparency and for FCS is here. enhancing the predictability of IDA’s support to its clients. The PBA system uses an allocation formula THE WBG FINANCES THREE MAIN TYPES OF that accounts for a country’s relative poverty PROJECTS FOR CLIENT GOVERNMENTS (using Gross National Income per capita as proxy), population and performance, as captured in an •• While IFC finances the private sector, the main annual Country Policy and Institutional Assessment clients for the WB are governments. Whether (CPIA) rating determined by the WB, as well as a from IBRD, IDA or trust funds, the WB finances rating for IDA portfolio performance. IDA provides three main types of government projects, which grants to countries at high or moderate risk of “debt offer different entry points for collaboration. 8 •• Development Policy Operations (DPOs) pro- Both institutions focus on global and regional vide budget support attached to the achieve- issues, cooperate closely in international debates ment of policy and institutional reforms rather and processes and face similar pressures from than the implementation of specific projects. member countries and public opinion. At the DPOs in FCS typically focus on core economic country level, multilateral status brings neutrality governance reforms. In the development and that bilateral donors may be perceived to lack. implementation of the reform programme, the WB coordinates closely with other partners 22. The WBG has a lighter, more corporate providing policy-based funding or technical as- structure of country representation than the United sistance. A recent example of a DPO from the Nations. The Board of Governors, which includes Solomon Islands is here. the finance ministers or other representatives of all shareholders, is the ultimate policymaker of the •• Investment project financing is for specific institution. The Governors delegate most duties to development projects, for physical and social a resident 25-member Board of Executive Directors infrastructure, institution building, social devel- (EDs). IBRD’s ED’s serve ex officio on the Boards opment, strengthening governance and foster- of IDA, IFC and (effectively) MIGA. The five largest ing private sector activity. This is the main form IBRD shareholders (United States, Japan, Germany, of IDA financing, accounting for 84 percent France and United Kingdom) each appoint an ED. of commitments in FY13 (DPOs made up 12 Other countries are grouped together to elect the percent). A recently approved investment proj- remaining ones. The Board meets twice a week ect for integrated river basin management in to consider project proposals, policy and oversight Myanmar is here. issues. Voting power depends on shareholdings, •• Program-for-Results (PforR), introduced in but decisions are usually based on consensus. 2012, supports government programmes with a focus on results, to which the disbursement 23. Each autumn, the Boards of Governors of funds is directly linked. Capacity is built us- of the WBG and IMF hold Annual Meetings to ing programme systems. It provides an oppor- discuss poverty reduction, international economic tunity to improve coordination among develop- development and finance. The meetings are held ment partners in government programmes by in Washington or, every third year, in a member pooling resources. PforR made up 4 percent of country. Around these meetings, the WBG and the IDA commitments in FY13, mostly for non-FCS IMF organize forums for governments, civil society countries. organizations, journalists, the private sector, 21. United Nations and WBG have similar academics and other international organizations to country membership but different governance interact with staff. The Spring Meetings are similar structures. The two institutions have almost but smaller, without plenary Governors’ sessions. the same membership, which—together with the broad geographic focus of their activities— 24. Different ministries represent member creates many opportunities for partnership. states at the WBG and the United Nations, which IBRD’s 188 shareholders are all United Nations can lead to differing approaches on particular member states, with the exception of Kosovo. issues. For example, the finance ministry 9 officials at the WB have historically been more (CCSAs, or Groups; Box 2), each headed by a conservative on financing policies than foreign Senior Director, to break down regional divisions ministry counterparts at the United Nations. of thematic expertise. Two Vice-Presidents Countries with development ministry staff at oversee the GPs and CCSAs. In parallel, the WB both institutions—notably Sweden, Switzerland is undertaking an expenditure review that aims for and the United Kingdom—have worked to foster such linkages, including through the informal “Philadelphia Group. ” This has held occasional meetings of small groups of United Nations Permanent Representatives (PRs) and EDs for BOX 2: GPS AND CCSAS more than a decade. Member state bodies such as the Peacebuilding Commission (PBC) can also Global Practices: play a role in strengthening communication and •• Agriculture consistency and building consensus among PRs •• Education and WBG EDs on issues of mutual interest. •• Energy & Extractives •• Environment & Natural Resources REORGANIZATION STRENGTHENS THEMATIC •• Finance & Markets FOCUS, REDUCES REGIONAL DIVISIONS •• Governance 25. •• Health, Nutrition & Population The WBG operates under the day-to-day •• Macroeconomics & Fiscal Management leadership and direction of the President and senior management, which includes two Managing •• Poverty Directors and the Vice-Presidents in charge of •• Social Protection & Labor regions, functions and thematic areas. The Board •• Trade & Competitiveness appoints the president for a five-year renewable •• Transport & ICT term. Dr. Jim Yong Kim has been president since •• Social, Urban, Rural & Resilience July 2012. •• Water 26. The Vice-Presidential Unit (VPU) is the main organizational unit of the WB. With a few exceptions that report directly to the president, Cross-Cutting Solutions Areas: each of these units reports to a Managing Director •• Climate Change or to the WBG’s Chief Financial Officer (CFO). •• Fragility, Conflict & Violence Further details on management and organizational •• Gender structure, including organograms are available here. •• Jobs 27. A major reorganization is underway over •• Public-Private Partnerships FY15, which has involved the creation of 14 Global Practices (GPs) and 5 Cross-Cutting Solutions Areas 10 significant reductions in administrative costs, as responsible for country programme design and well as a strategic staffing exercise, to realign staff implementation and for government and partner behind the priorities of the new structures. relationships at the country level. The regional VPUs are Africa, East Asia & Pacific, Europe & Central Asia, 28. The six regional VPUs, which include Latin America & the Caribbean, the Middle East & Country Management Units (CMUs), remain North Africa and South Asia. 11 III. UNITED NATIONS-WORLD BANK COORDINATION AND COMMUNICATION HEADQUARTERS STRUCTURES PURSUE STRA- Trade Organization in Geneva liaises with both the TEGIC DIALOGUE, SUPPORT PARTNERSHIP United Nations and diplomatic missions in Geneva, particularly on humanitarian action, disaster risk 29. As an Independent Specialized Agency, management, health and migration. It coordinates the WBG links with the United Nations primarily the WB’s engagement in the Inter-Agency Standing through the Economic and Social Commission Committee (IASC) and other global humanitarian (ECOSOC) and through its membership on the coordination forums, and interacts with the Red Chief Executives Board. It is also has observer Cross Movement (both International Committee status at the General Assembly, the UNDG, of the Red Cross and International Federation of the PBC and other bodies, and is invited, when Red Cross and Red Crescent Societies) and key relevant, to address the Security Council and the international non-governmental organizations Policy Committee. (NGOs). 30. The Office of the World Bank’s Special 32. Within the WB, the FCV Group has Representative to the United Nations in New York responsibility for the UN–WB partnership in FCS, is a key liaison, focusing on intergovernmental, coordinating closely with GPs and CMUs, which inter-agency and institutional relations. It interacts lead interaction on particular issues and countries. on behalf of the WB with the UN and diplomatic The FCV Group co-leads central dialogue structures missions in New York, and connects colleagues with United Nations counterparts (see below), in from both organizations in the field and at addition to administering the UN–WB Fragility and headquarters to  foster strategic United Nations– Conflict Partnership Trust Fund (Box 3). World Bank engagement in FCS and more broadly. The New York office represents WB management in key United Nations meetings and promotes 33. Within the United Nations, the main focal interaction and stronger relationships between points for the UN–WBG FCS partnership are the senior WB managers and high-level United Nations Development Operations Coordination Office (DOCO) officials, as well as facilitating participation in for the UNDG and the Peacebuilding Support Office United Nations events, conferences, roundtables (PBSO) for the Secretariat for partnership issues. and summits. The key headquarters counterparts for country- specific engagement are the regional divisions and 31. The Office of the World Bank’s Special bureaus in the lead United Nations departments Representative to the United Nations and World and agencies, funds and programmes. Individual 12 BOX 3: UN-WB FRAGILITY AND CONFLICT PARTNERSHIP TRUST FUND This fund provides financial support for jointly developed analytical, stra- tegic and operational activities, with an emphasis on promoting closer collaboration in the field. A joint UN-WB Steering Committee oversees and approves all proposals for the trust fund, which is supported by Switzerland and Norway. Grants are available for joint projects of up to $500,000. Guidance for applicants and overviews of past projects is on the Fund’s website. Funding is available, via a single application and approval process, for WB–executed activities through the main fund, administered by the FCV Group, and for United Nations implementation via a parallel funding stream managed by UNDOCO. UN Photo/Marie Frechon United Nations entities also have designated focal The WB will usually have a smaller office led by a points for the WBG partnership. (See Annex for CM or CR who reports to the CD, where a director main contacts.) is non-resident. 34. Meetings take place about twice a 36. In Washington, the primary contact on year at the Assistant Secretary-General/WBG country issues is usually the Country Program Senior Director level to discuss the UN–WBG Coordinator (CPC), who serves as a deputy for the partnership and oversee the implementation of CD on all countries covered. CDs lead multi-country global agreements and the SRF . The inter-agency teams called Country Management Units (CMUs), Steering Committee that oversees the Partnership which include country economists, program Trust Fund also supports this high-level dialogue, leaders (who coordinate several sectors), country including through driving the development and or operations officers and administrative staff. In implementation of a shared work plan for the SRF . addition to these CMU staff, country offices (in the field) will also usually house several sectoral specialists, and sometimes communications, WBG ORGANIZATION, GEOGRAPHY DETER- financial management, procurement and other MINE KEY CONTACTS ON COUNTRIES, THEMES staff, most of whom will work on more than one 35. Country Directors (CDs) and Country country. Managers or Representatives (CMs or CRs) are the key interlocutors for United Nations organizations 37. The best contact on a particular project in the field, and developing a strong relationship or issue may therefore be based in-country, at with these can underpin broader partnership headquarters or another location, though CMU staff efforts. A CD has responsibility for the WB’s will all report to the same CD, via CMs and CRs if country relationship and program. These directors, they are based in another country office. Thematic whose level is roughly that of United Nations specialists, wherever based, will ultimately report ASGs, usually cover several countries. Thus, the to the CCSA and GP Senior Directors in Washington, CD based in Mali also covers Chad and Niger, as usually through a manager with specific thematic well as Central African Republic (CAR) from FY16. or regional coverage. This contrasts with often- 13 sharper field versus headquarters divisions in the is limited, it may make sense to group issues that United Nations. affect the WBG into periodic sessions, such as once a month. The WBG should also be invited to 38. The WBG’s country webpages provide participate in relevant planning sessions, retreats, information on WBG support and contacts for cluster and sector meetings and, at headquarters, individual countries. Links are in the following country-focused Integrated Task Forces (ITFs). format: www.worldbank.org/countryname. The Country Assistance or Partnership Strategy or 40. The United Nations Department of Safety Interim Strategy Note, usually flagged on the country and Security (DSS) is responsible for inter-agency page, provides an overview of a country program. arrangements for the protection of the United Since July 2014, new strategies have been in the Nations system, including the WBG, in hazardous form of Country Partnership Frameworks (CPFs, situations, which may be beyond the control of see paragraph 47). The Projects and Operations, the host government. The WBG will generally Research, and Data tabs provide more detail. seek to act in unison with other members of the United Nations on security issues but reserves 39. In the field, the WBG is a member of the the right to determine its own risk vulnerability United Nations Country Team (UNCT) as well and to decide on and implement emergency as the Security Management Team (SMT) and, relocation or evacuation responses. When such where relevant, the integrated mission Senior deviations become necessary, WBG country office Management Group. Its participation in all these management should make all efforts to coordinate meetings should be encouraged. In countries with the United Nations Designated Official, DSS where WBG offices are small and representation and the SMT. 14 IV. COLLABORATION ON ANALYSIS AND PLANNING SUPPORT FOR NATIONAL STRATEGIES, aid coordination as well as the broader monitoring COORDINATION IS STARTING POINT FOR and evaluation of national strategies. UNITED NATIONS–WORLD BANK GROUP ALIGNMENT 43. Implementation of the New Deal for engagement in fragile states offers further 41. Coordinated support for national opportunities for working together on country- development programmes should be the starting led processes, including developing indicators point for aligning United Nations and WBG for peacebuilding and statebuilding goals (PSGs), activities in-country. A collaborative United Nations fragility assessments and compacts. The New Deal, and WBG approach in technical assistance, endorsed by UNDG and the WBG, stresses the capacity building and other support for national importance of more effective partnerships to reduce and sector-based development and recovery the burden on low-capacity governments in FCS and plans is vital, as the WBG and United Nations are better coordinate support around country priorities. frequently main partners to Governments in such Recent UN–WBG collaboration in the context of processes. These include National Development New Deal implementation in Somalia is presented Plans, Poverty Reduction Strategy Papers (PRSPs), in Box 5. The g7+ grouping of fragile states and the Compacts and Transitional Results Frameworks. International Dialogue have developed resources, Such cooperation can be grounded in multi- including A Guide to Implementing the New Deal. country agreements, such as that covering non- communicable disease (NCD) prevention and control (Box 4). Clearly articulated, prioritized national strategies, with clear arrangements for BOX 4: COORDINATION ON NCD SUPPORT financing, implementation and monitoring and In non-communicable disease (NCD) preven- evaluation and broad buy-in from stakeholders tion and control, a trilateral agreement among make coordination of assistance easier. UNDP, WHO and the WB aims to leverage sig- nificant WB resources for national NCD plans. 42. Typically linked to the financing and A platform and mechanism for this has been implementation of such strategies, support for agreed through initial country inter-agency as- country-led coordination processes and systems sessment missions. The foundation is a national offers further opportunities for United Nations and NCD plan that is multi-sectoral, with the UNCT WBG partnership. This often includes support for through the UNDAF driving technical assistance the preparation of donor conferences and other and service delivery support, and the WB as the coordination meetings; organizing such meetings financing arm. A memo among UNDP, WHO and among donors; strengthening national capacity for UNDP outlines a work plan that covers this and related work. 15 BOX5: NEW DEAL IMPLEMENTATION— CAPACITY DEVELOPMENT SUPPORT IN SOMALIA The United Nations and World Bank in Somalia have achieved a high degree of cooperation based on strong complementarities and the need to build on the momentum of the government’s 2013 New Deal Compact. The joint UNDP–WB Capacity Devel- opment Program addresses the priorities identified in the Com- pact through capacity injection, civil service management and ensuring coherent approaches in cross-government functions, in support of the PSG goal of Inclusive Politics. The UNDP and WB adopted a common program framework, joint management and results framework and joint reporting structure, but con- sidered a joint project document unnecessary. The teams found that sharing documents and information regularly, as well as fre- quent outreach and meetings, were key to successful collabora- tion. They also accepted the different timelines and procedures of each organization rather than trying to harmonize them and maintained a clear division of labour, based on comparative ad- vantages. The United Kingdom, Sweden, Norway and the EU pro- vided parallel funding. COOPERATION ON UNITED NATIONS AND goals, as well as the WBG’s twin goals of ending WORLD BANK GROUP ASSISTANCE FRAME- extreme poverty and increasing shared prosperity. WORKS SHOULD START UPSTREAM Country circumstances, particularly the coverage of national strategies and election cycles, determine 44. Effective, upstream collaboration in the a CPF’s timeframe, with most expected to cover development of United Nations and WBG assistance 4 to 6 years. A CPF sets out a context-sensitive, frameworks can build shared understanding selective and flexible WBG country programme, and vision and promote complementarity and reflecting the role that the Government agrees for partnership in the resulting programmes. This the WB to take with respect to its other partners. collaboration can take many forms, including This includes projected funding over the period and joint assessment missions, working together on an outline of planned projects and other activities. preparatory analytical work, bilateral or broader In limited circumstances when the development consultations (preferably early on and substantive of a medium-term programme is impossible— rather than just validating), as well as consultations such as when the WBG is re-engaging after a long with national stakeholders on development absence, or conflict or instability are ongoing—the programmes and activities undertaken jointly. WBG may prepare a briefer Country Engagement Note. 45. Country Partnership Frameworks (CPFs) in 2014 replaced Country Assistance Strategies 46. A Systematic Country Diagnostic (SCD) (CASs) as the WBG’s business plans in support of will inform each new CPF . The diagnostic, which individual countries. They are based on a country’s involves consultations with a range of stakeholders, own development strategy and poverty reduction will identify the most important challenges and 16 opportunities for reaching the twin goals. SCDs is not recommended, due to the considerable in FCS should be informed by a fragility analysis transaction costs involved in accommodating to identify key challenges and appropriate WBG the different calendars, planning processes responses. United Nations staff are encouraged and operational modalities of partners. Instead, to participate in SCD activities and analysis if where the government and partners agree on the opportunities arise. need for an additional framework to coordinate assistance, efforts could be devoted to developing 47. It will likewise be important to engage the a flexible operational framework for alignment WBG in initial UNCT and stakeholder discussions with the national development strategy, for on planning for a United Nations Development coordination among development partners, such Assistance Framework (UNDAF) or common as the previous Democratic Republic of Congo (DRC) country transition strategy, including during the Country Assistance Framework, and the current comparative analysis and SWOT (strengths, DRC International Security and Stabilization Support weaknesses, opportunities and threats) discussions. Strategy. These joint documents outline priorities In countries with an integrated presence, the WB for international support and make commitments should also be engaged in Integrated Strategic to advance aid effectiveness. Framework (ISF) discussions to ensure a common understanding of the crisis and the critical peace JOINT ANALYSIS ON PRIORITY FCS THEMES consolidation needs, to share context analysis and PAVES WAY FOR FURTHER COLLABORATION map out comparative advantages, as reflected in UNDAF and IAP guidance. The WBG should also be 50. Particularly on the 2011 WDR priority invited to participate in United Nations assessment themes for partnership—jobs, justice, security and processes through the UNCT or stakeholder institutional strengthening—recent analysis and consultations, which include Common Country the development of joint approaches and tools will Assessments (CCAs). It could also be very useful guide thematic collaboration at the country level to invite the WBG to participate in Strategic and going forward. All of these activities have been Technical Assessment Missions (SAMs and TAMs). supported by the UN–WB Partnership Trust Fund. They include: 48. Conflict analyses and fragility assessments offer a particular opportunity for collaboration •• Security Sector Expenditure Review Source- between the United Nations and WBG. As book prepared by the United Nations Depart- mentioned above, these are now conducted in ment of Peacekeeping Operations (DPKO), countries implementing the New Deal. Such United Nations Development Programme analyses are required for SCDs and ISFs in FCS, as (UNDP) and the WB, currently being piloted in well as being recommended for UNDAFs. the CAR before finalization. •• Joint framework for strengthening justice ser- 49. Though collaboration is encouraged vice delivery, using a problem-driven approach, among the United Nations, the WBG and other recently piloted in Somalia. partners in the preparation of their own strategies, merging documents (e.g., UNDAFs and CPFs) •• Joint diagnostic tool for Re-establishing Core 17 Government Functions in the Immediate Af- 51. More broadly, the WBG’s core expertise termath of Conflict. A pilot usage in the CAR on socioeconomic issues can be applied in FCS to has underpinned a joint strategy to reregister topics beyond its usual focus, through joint work all civil servants and provide critical salary fi- with the United Nations. Recent examples have nancing. included country-focused joint public expenditure •• Conflict-sensitive extractive industries frame- review work focusing on security and justice work to help governments address conflict sectors, such as in Liberia, and analysis of the risks, through entry points along the value impacts of peacekeeping missions, such as in Mali chain. (see Box 6). BOX 6: ASSESSING PEACEKEEPING IMPACTS IN MALI
 The WB and the United Nations Multidimensional Integrated Stabiliza- tion Mission in Mali (MINUSMA) are together analysing the socioeconom- ic impact and perceptions of the mission. While other missions have been assessed after closure, this work focuses on the early stages, aim- ing to improve the impact on communities and the local economy as the mission evolves. The study is generating data and building collaboration that will promote further cooperation, particularly on the rollout of de- velopment activities in conflict-affected northern regions. The project is financed by the UN–WB Trust Fund, with two consultants recruited by the WB and a survey team by the United Nations. Completion is due in mid-2015. UN Photo/Marco Dormino 18 V. OPPORTUNITIES FOR COLLABORATION IN DIFFERENT COUNTRY CONTEXTS SUPPORTING IMPLEMENTATION OF limited, the United Nations may have the capacity DEVELOPMENT ACTIVITIES IN to implement project activities on behalf of DIFFICULT ENVIRONMENTS governments with WBG financing. United Nations agencies often have presence on the ground even 52. United Nations–World Bank Group in remote areas and can supply essential goods collaboration can support the rollout of development and deliver services quickly, as well as providing and reconstruction activities in regions emerging technical assistance and capacity building, even at from or still affected by conflict. This can restore decentralized levels of government. United Nations services and create jobs, providing much-needed agencies may have developed promising pilot support and a peace dividend. initiatives that the United Nations and WBG can work together to scale up. See Box 7 for recent 53. The presence of peacekeeping forces can collaboration in the CAR and Mali. Section VI provide a security umbrella that allows sufficient covers the main models for structuring and funding government and WBG presence at key points, such collaboration. as regional capitals, to support the implementation and supervision of development activities in 55. Occasionally, especially when NGOs, local broader regions. As a specialized United Nations firms and United Nations agencies are not present agency, the WBG can use United Nations flights, or able to implement, engineering battalions and which can be essential for access. The WBG may other peacekeeping units may be able to undertake request missions and agencies to assist in the reconstruction and development activities linked to provision of logistical and practical support for WB–funded projects. This was the case in Liberia WBG–financed projects, including vehicle use, in 2006 and in the violent slum of Martissant in office space and accommodation in areas with Port-au-Price, Haiti, in 2009. These job-creating few safe alternatives. The WBG may also look to road building projects paired the expertise and civilian mission units for information, analysis and equipment of engineering battalions with funding liaison with local communities and officials. In and development expertise from the WBG, some cases, such as currently in Yemen, missions supported by project management from UNDP have housed WBG staff to drive joint support for and United Nations Office of Project Services implementation of national priorities. (UNOPS). The projects supported reconstruction of critical infrastructure, provided jobs and improved 54. In regions affected by conflict or violence, conditions for local communities. (See Box 8 for and other contexts where state capacity may be Liberia example.) 19 BOX 7: URGENT FOOD AND AGRICULTURAL SUPPORT IN CAR AND MALI In 2014, the Emergency Food Crisis Response and Agriculture Re-launch Project, a collaboration with the transitional government of the CAR, the Food and Agri- culture Organization (FAO) and World Food Programme (WFP) supported by a $20 million IDA credit, aimed to restore livelihoods and assets destroyed by the ongo- ing conflict, while addressing a severe food crisis. It leveraged key United Nations capacities (including procurement, targeting and delivery of supplies), as well as greater geographic access. The project aimed to provide food to 220,000 young children, 197,000 school- children and 7,500 pregnant and lactating women, as well as distributing seeds, fertilizers and other agricultural inputs. The CAR government contracted FAO and WFP, who sub-contracted networks of local NGOs for targeting and distribution. Similar agricultural support for households at risk of food insecurity in conflict-af- fected northern Mali is underway in early 2015, implemented by the FAO for the Government of Mali, using $5 million under the IDA Emergency Recovery and Re- construction Project. Curt Carnemark/World Bank BOX 8: ROADS FOR PEACE IN LIBERIA Struggling in 2006 to generate employment in areas of Li- beria where livelihoods were critical to stabilization and devastated infrastructure in need of repair, the United Nations and WB collaborated on the labour-intensive re- pair of feeder roads through a four-party memorandum of understanding (Liberian Ministry of Public Works, WB, UNMI and UNDP). UNMIL provided engineering equipment for the road repairs, amid insufficient private sector ca- pacity, qualified workers and perimeter security, extend- ing their standing responsibility to keep supply lines open in the areas covered. UNDP managed the project, pro- curing materials, managing recruitment and payroll with $600,000 from a precursor to the SPF Trust Fund. The transport sector expertise of WB staff added to this secu- rity-stabilization-development effort. A longer case study is here. 20 Dominic Chavez/World Bank PLANNING FOR AN END TO CONFLICT: to address urgent needs and cement peace, local WATCHING BRIEFS AND PEACE PROCESSES public and private sector capacity has often been seriously weakened 56. When the United Nations and World Bank by the conflict. Group have limited or no presence in-country, they can set up joint watching brief processes to share PCNA EXAMPLES: 59. Cooperation information and analysis and prepare for eventual on needs GEORGIA engagement. Such a process was used in Libya in assessments and SOMALIA 2011, when the United Nations and WBG worked planning processes jointly on a pre-assessment process, with the WB SUDAN/SOUTH for recovery and leading the economic analysis. SUDAN development is essential. The United DARFUR 57 . The WBG cannot finance or participate Nations and the WB LIBERIA directly in peace negotiations (see paragraph are central partners, 13), but it can make technical contributions to HAITI along with the EU, the national dialogue or peace process, typically IRAQ in Post-Conflict on economic and fiscal issues, reconstruction, Needs Assessments and financing structures. The WBG can help (PCNAs), key identify security flashpoints emanating from the principles for which economic sphere that may not otherwise surface were outlined in a in diplomatic negotiations and other political 2008 Joint Declaration, which also covers post- mediation, such as capture and rent through state- disaster processes (see paragraph 74). PCNAs owned enterprises, extractive chains of custody, are multilateral exercises used to conceptualize, port and airport operations, the management of negotiate and finance a common shared strategy revenues and expenditures and the impact of for recovery and development, led by the national illicit financial flows. WBG involvement in such or regional authorities. A full PCNA includes an processes has usually been on the invitation assessment of needs, a national prioritization and of the United Nations, bilaterals or the parties costing and a transitional results framework/matrix concerned. (TRF). The methodology is flexible, with lighter exercises completed in Libya and elsewhere. COORDINATING POST-CONFLICT RESPONSE DOCO is the United Nations focal point for PCNAs and compiles guidance and experiences. 58. Close coordination and collaboration among the United Nations, the WB and other 60. Paragraph 52 above presents some partners is particularly important in immediate frameworks for collaboration in key areas. In post-conflict periods to support implementation practice, WB and United Nations support has been of peace agreements, re-establishment of core coordinated within a range of different models. For public administration and basic services, and public sector capacity building, these include the revival of private sector activity and employment. robust anti-corruption approach of the Governance While rapid results are needed on multiple fronts and Economic Management Assistance Program 21 (GEMAP), implemented in Liberia over 2006–2010, Nations agencies can provide technical assistance, and the New Deal–based framework now in place goods and services that complement WB analytical in Somalia (Box 5). and advisory work. Such coordinated support has been used in Zimbabwe and other countries to 61. The WBG and United Nations are drive key public financial management reforms that increasingly scaling up joint collaboration in can pave the way for debt relief, arrears clearance support of political transitions as well, for example, and full re-engagement by the WBG and other in support of the National Dialogue process in partners. Yemen. DEVELOPING MULTI-DONOR FINANCING WBG RE-ENGAGEMENT AND DEBT RELIEF RECOMMENDATIONS 62. If a country has been in prolonged conflict, 65. In FCS, pooled financing mechanisms are the WB will often have disengaged either due to important instruments for effective international security concerns or because of the inability of support. They promote alignment of financing local counterparts to implement development behind government priorities, create greater activities, a lack of legitimate state authorities or coherence of international support, reduce the country falling into arrears on debt payments. transaction costs for national counterparts, share In these cases, while the WB process of officially risks and strengthen mutual accountability. re-engaging is underway, United Nations logistical support and information sharing can be essential 66. United Nations staff are strongly for the WBG to establish an early foothold and encouraged to collaborate with WB colleagues involvement in key planning processes. In Iraq, when making recommendations to governments Somalia and other cases, returning WB staff have and donors on the design of new Multi-Donor initially been located in United Nations offices. Trust Funds (MDTFs) and other financing arrangements in support of national reconstruction 63. Re-engagement processes often and recovery. In cases such as the Somalia include the WBG and the IMF working with the Development and Reconstruction Facility, the fund government on a broader programme of debt relief is both a coordination framework and a financing linked to reforms, typically via the Heavily Indebted architecture, providing a single strategy and Poor Countries (HIPC) Initiative and the Multilateral oversight mechanism for trust funds managed by Debt Relief Initiative (MDRI). United Nations the United Nations and WB. However, sometimes staff, including from peacekeeping or political discussions regarding design and the management missions, are encouraged to coordinate with those roles of the WB and the United Nations have been developing debt relief conditions, to promote acrimonious, including Southern Sudan in 2006 consistency with commitments that governments and Haiti in 2010. may have already made under peace agreements. 67. The Operational Annex of the 2008 64. In countries where the WBG is not fully Partnership Framework seeks to strengthen engaged and its range of support is limited, United collaboration around MDTFs. It set out a series of 22 technical considerations that should be referred a coordinated United Nations–World Bank financing to when seeking to reach agreement on design architecture to channel funding to United Nations recommendations, which it states would normally and WB–financed programmatic interventions for be made jointly by the WB and United Nations reconstruction and recovery. As a starting point, system, with other multilateral organizations as general principles can be drawn from experience in appropriate in the context. It adds, “in situations this area, as reflected in the Partnership Review: (i) where stakeholders in the field hold differing the establishment of an MDTF should be seen as views, country representatives of the United the start of a potentially challenging implementation Nations system and the WB should consult their process rather than as a competition for control respective designated representatives at HQ. ” of resources, so it is vital to develop the most practical structure for this purpose; (ii) apart from 68. United Nations staff should involve the Multi- the limited circumstances in which the Fiduciary Partner Trust Fund Office (MPTFO) at an early stage Principles Accord (FPA) applies, it is difficult for for tailored advice on MDTF design, especially when most WB–managed trust funds to finance United assessments such as the PCNA and Post-Disaster Nations implementation if the agency in question Needs Assessment (PDNA) point to the need for is unable to use WB rules and procedures; (iii) for this reason, two-window trust funds (one United Nations, one WB) have proven effective models in Iraq and elsewhere; and (iv) in cases where the FPA is potentially applicable, this should be provided BOX 9: OPERATIONAL ANNEX for from the outset in Administration Agreements COMMUNICATION PROTOCOL signed by donors and the WB. The UNDG and WB will strengthen mechanisms for ensuring consistent and effective institutional RAPID-ONSET CRISES AND OTHER DETERIO- contacts in crises and emergencies as follows: RATION IN LOCAL CONDITIONS Immediate contacts made in the event of a crisis 69. When crises occur, the United Nations or post-crisis situation between the most senior and WBG should communicate closely (see Box 9) WB and United Nations official at the country lev- to ensure an effective, consistent and immediate el. response to country and staff needs and the sustainability of programmes. Though a member Simultaneously, institutional teams responsible of the SMT, the WBG will ultimately make its own for post-crisis assistance in New York, Geneva decision on alternative working arrangements or and Washington will ensure that they are in con- tact. evacuation of staff. The WB and UNDG institutional teams will be 70. Humanitarian actors should coordinate responsible for ensuring effective information with the WBG on response to disasters, spillover sharing and coordination between headquarters from conflict and other crises, on both immediate and country offices, and among agencies, and for response and the longer-term transition to troubleshooting UNDG-WB coordination prob- development activities. While the WBG’s lems that cannot be resolved at country level. 23 BOX 10: UNITED NATIONS–WORLD BANK GROUP COLLABORATION IN THE GLOBAL EBOLA RESPONSE The United Nations and WBG are working closely with governments and other partners in the affected countries, to support immediate response and planning for recovery. In 2014, the WBG mobilized $518 million for emergency response in Guinea, Liberia and Si- erra Leone to contain and prevent the spread of infections, provide treatment and care to those already infected, help communities cope with the economic impact of the crisis and resume essential health services. The funds were disbursed directly to the countries affected by the Ebola outbreak and to United Nations implementing agencies. Neigh- bouring countries are taking preventive measures and reallocating WBG funds under on- going projects to engage United Nations agencies to support this. In addition to upstream collaboration on analysis and assessments related to the impact of the Ebola crisis, the United Nations and WBG worked together to deliver rapid assis- tance. By December 2014, the WBG had provided over $172 million through the United Nations (UNICEF, WHO, WFP and UNFPA) from an IDA grant. In early 2015, UNOPS re- ceived WBG funding to provide logistical services for the deployment of international re- sponders and medical teams in the three countries. United Nations engagement has been provided for through supplies and technical assistance agreements (contracts with the government) under the overall West Africa response plan. WBG funding has supported a large number of national and regional priorities to curb the epidemic, including UNICEF shipments of essential supplies and vehicle, to Guinea, Liberia and Sierra Leone, techni- cal assistance on infection control and social mobilization; UNFPA delivering motorbikes, computers and other accessories to support the response; WFP provision of ambulances and mortuary vehicles, and delivery of more than 4,000 metric tons of food to holding and treatment centres and quarantined communities in Sierra Leone, reaching at least 300,000 households. UNICEF, WFP, WHO and UNOPS have used WBG funding to provide urgent inputs to the three countries, as well as technical assistance, training and services, and supporting the deployment of medical personnel. Further information is here.  articles prevent it from providing humanitarian provide implementation structures for the delivery assistance, its OP8.00 policy allows for rapid of emergency assistance, or make funds available response to emergencies, including to preserve for implementation by United Nations agencies and or restore essential services, and human, social other partners. Supplementing IDA’s performance- and institutional capital. This might include cash based allocation system, regional management has transfers and other transitional safety nets, health some contingency IDA funding available for urgent supplies, water and sanitation, food, seeds and needs and can sometimes mobilize trust fund other livelihoods support to crisis-affected groups. assistance. (See Box 10 on Ebola response.) 71. WB policy (OP10.00) allows for accelerated project preparation in situations of urgent need. 72. In response to natural disasters, PDNAs Restructuring of existing projects, usually faster, can can be used to assist governments to assess 24 the extent of a disaster’s effects and impact, and wider donor funding and advocacy. United similar to a PCNA. A PDNA aims to produce an Nations leadership should engage with the WB actionable and sustainable recovery strategy for and other partners who work closely with national mobilizing financial and technical resources. In planning and budgeting processes to ensure that fragile contexts, a PDNA can provide a platform these prepare for financial and capacity gaps that to coordinate and harmonize support from the national institutions are likely to experience due European Union, United Nations and WB (the three to the drawdown and withdrawal of a mission. central partners in the PDNA methodology) as well In particular, state institutions may need to assume as other actors. Recovery and reconstruction can responsibility for security and public order over be pursued in a manner that opens opportunities a relatively short period. Subject to certain due for dialogue and consensus between conflict- diligence requirements, DPKO, UNDP and the affected communities. The post-disaster recovery WB are increasingly collaborating on security and context also provides an opportunity to establish justice public expenditure reviews. In transition mechanisms for transparent use of funds, thereby contexts, the WB’s access and expertise can increasing accountability to the community. effectively open the door to the finance ministry and lead to the inclusion of realistic projections for expanded security and other functions in TRANSITIONS OUT OF PEACEKEEPING Medium-Term Expenditure Frameworks and 73. As missions plan to hand over key tasks to other planning and budgeting processes. This national counterparts, the UNCT and others, it can provides a credible basis for the Government to be helpful to engage the WBG at an early stage. make its own allocations and for donors to fill Transition plans should address ongoing long-term the gaps. In addition, these reviews can make resource requirements and include strategies on recommendations for improving transparency, how to fill those gaps. This should include national accountability and improved budget oversight in budget processes as well as United Nations police, justice and defence institutions. 25 VI. STRUCTURING AND FINANCING COLLABORATION ON PROJECTS AND PROGRAMMES 74. It is useful to understand client and PARALLEL ACTIVITIES WITHIN COMMON WB roles and responsibilities regarding country PROGRAMMATIC FRAMEWORKS programmes and individual projects as these determine opportunities for collaboration 77. Parallel activities, typically with separate and appropriate financing and implementing funding streams managed by the United Nations arrangements. WB clients, who are usually and the WB for the activities each supports, are member governments, lead project preparation often the simplest and most effective way to and implementation. The WB undertakes analysis, support cooperation. If funding is available on both strategy and advisory work and appraises, finances sides, work can be closely coordinated within a and supervises projects, as well as working single project or programme framework without closely to support clients on their preparation and the need to negotiate a contract or grant agreement implementation. (Details of the Project Cycle, or for one organization to oversee implementation including responsibilities, are here.) by the other. Implementing agencies can use their own policies for procurement, financial 75. As well as the type of activity (and management, safeguards and so on. responsibility for it), two other key factors for structuring possible collaboration in any particular 78. In some emergency or fragile settings, case are, first, who would be funding whom and United Nations missions have made in-kind with what resources and, second, the country contributions within the framework of WB– context, in particular whether the situation involves financed government projects, without needing urgent need, fragility or limited government to receive funding from those projects. One capacity. Main models applicable in different such example was the emergency rehabilitation circumstances are presented below. of Haiti’s Route Nationale 3 after the earthquake of 2010. As part of the implementation of a WB– 76. Progress has been made in assuring financed project, MINUSTAH contributed the use the compatibility of WB and United Nations of trucks and heavy machinery. UNOPS did receive fiduciary systems, but establishing the legal and project funds to implement works on behalf of the operational framework for initiatives that involve Government. cross-financing can still be challenging. Teams are advised to consult partnership focal points at an 79. With accountability not linked directly to early stage. the flow of funds, other approaches are needed to 26 promote coherence and timely delivery of results 80. United Nations– and WBG–managed trust by all parties. Box 5 on joint capacity development funds that promote partnership activities may be support in Somalia illustrates some ways that this able to provide resources for implementation by can be achieved: close linkages with government their own organizations, as part of a larger joint priorities and planning, strong communication and initiative, provided the activity is otherwise eligible. joint reporting. A memorandum of understanding The UN–WB Partnership Trust Fund can provide among all parties can be useful to clarify roles and funding on one or both sides through separate responsibilities, though this is not essential or windows (see Box 11 for a recent example in (usually) legally binding. Jordan). The United Nations Peacebuilding Fund BOX 11: UNITED NATIONS–WORLD BANK SUPPORT FOR JORDANIAN HOST COMMUNITIES In 2013, the UN–WB Trust Fund approved $150,000 to jump-start UNDP activities under the Kingdom of Jordan’s $50 million Emergency Services and Social Resilience pro- gram, financed by an MDTF with contributions from Can- ada, the United Kingdom, Switzerland and the WB. The financing allowed UNDP to begin supporting the municipal- ities in their community outreach efforts since community participation was a critical component of the project, the aim of which was to mitigate the impact of the inflow of Syrian refugees on Jordanian host communities. UNDP’s next phase of support will likely be funded directly through the project via a contract with the Government of Jordan. It will support the prioritization of projects to be funded in the second year’s round of municipal grants through com- munity consultations facilitated by the teams who benefit- ed from the community outreach support. 27 (PBF) may be able to provide support for United Guidelines (paragraph 3.15) allow clients to Nations implementation. select and contract United Nations agencies on a single-source basis when they are “uniquely 81. On a much larger scale, major two- or exceptionally qualified to provide technical window MDTFs also provide parallel funding assistance and advice in their area of expertise” behind common frameworks. These include the but do not allow them preferential treatment International Reconstruction Fund Facility for Iraq in competitive selection processes. The WB and the Somalia fund described in paragraph 66. may agree that United Nations agencies follow their own procedures for selection and supply of goods on small contracts and “under certain UNITED NATIONS IMPLEMENTATION OF circumstances in response to natural disasters and PROJECT ACTIVITIES FOR GOVERNMENTS for emergency situations declared by the borrower 82. Including in FCS, the main opportunity and recognized by the WB. ” for United Nations agencies to work on the implementation of WB–funded projects is as 85. For goods, works and non-consultant a provider of goods, simple works or services services, the WB’s Procurement Guidelines allow to governments. The project’s implementing procurement by clients directly from United agency (usually a public sector body) undertakes Nations agencies following their own procurement selection and contracting according to WB policies procedures (see paragraph 3.10 on “Procurement and procedures, which include some special from United Nations Agencies”) for: (a) small arrangements for direct selection of United Nations quantities of off-the-shelf goods, primarily for agencies. Such collaboration is usually for the education and health; (b) health-related goods for provision of specific supplies and services under the treatment of humans and animals in certain larger WB–financed government projects, rather circumstances;1 and (c) small-value contracts for than the financing of projects developed and simple works when the United Nations agencies proposed by other parties, including United Nations act as contractors or directly hire small contractors agencies. and skilled or unskilled labour; or (d) in exceptional cases, such as response to natural disasters and 83. Information on individual WB–financed emergencies. projects is available here. The summary Project Information Documents (PIDs) as well as the 86. The WB requires governments to use its comprehensive Project Appraisal Documents standard forms of agreement on projects it funds. (PADs), provide details, including the implementing Tailored standard agreements that accommodate agency and the WB specialist responsible (the United Nations rules and language have been Task Team Leader, or TTL). The Resource guide to developed with several United Nations agencies consulting, supply and contracting opportunities to be signed with the client government agency. provides further information. United Nations teams can consult the WB’s procurement policy team at pdocuments@ 84. If the work involved is consultant services 1 If the number of suppliers is limited and the UN agency is uniquely or or technical assistance, the WB’s Consultant exceptionally qualified to procure such goods and related incidental non-consulting services, if any. 28 worldbank.org for assistance in adapting these WORLD BANK CONTRACTING OF UNITED models in cases involving other agencies and NATIONS AGENCIES FOR GOVERNMENTS IN activities. To date, FAO, UNESCO and United EXCEPTIONAL CIRCUMSTANCES Nations Population Fund (UNFPA) have agreed 90. WB policies allow direct contracting of with the WB on technical assistance agreement United Nations agency implementation financed forms, while UNICEF , UNFPA and World Health by IBRD, IDA and Recipient-Executed Trust Funds Organization (WHO) have agreed on forms for only when the conditions specified for alternative health sector supplies. These standard agreements implementation in paragraph 12 of OP10.00, are currently being updated and new versions will Investment Project Financing, are met. These apply be available shortly. “when the borrower/beneficiary is deemed by the 87. Where governments hire a United Bank to: (i) be in urgent need of assistance because Nations agency under a WB–financed project, of a natural or man-made disaster or conflict; or on the basis of a contract to provide specific (ii) experience capacity constraints because of goods, technical assistance or services, financial fragility or specific vulnerabilities (including for management arrangements are governed small states). ” In such situations, implementation by the WB’s standard financial management can be undertaken by “relevant international requirements and the obligation to maintain a agencies, including the United Nations, national financial management system that allows for agencies, private entities, or other third parties” if adequate oversight and administration of an the following conditions are met: “the beneficiary’s agreement with the United Nations agency is capacity to implement the needed activities be then the responsibility of the borrower. In these insufficient; and that the beneficiary requests cases, WB financial management specialists the WB to make alternative legal and operational review arrangements that are to be put in place arrangements. ” Such arrangements are “limited to by the borrower to ensure that information the time necessary to establish or restore borrower received from the United Nations agency is capacity and, in all cases, are adopted in Projects recorded by the borrower’s implementing that include capacity-building measures to enable entity in its accounting systems, included in its a timely transfer of implementation responsibilities financial reports, and is subject to audit by the to the borrower. ” borrower’s own auditor. 91. In situations when the WB can finance 88. United Nations agencies should apply the alternative implementation, and for certain trust indirect fee percentage that applies for contracts funds, the 2008 UN–WB Fiduciary Principles Accord where the client is a government, not the WB. (FPA), agreed among the WB and 11 United Nations signatories,2 can provide a useful contractual 89. With approval of the Government involved, framework. It allows the recipient organization to agencies can be paid in advance from WB funding, use its own systems for procurement, financial either from the client’s project accounts or from the management, safeguards and addressing fraud WB directly, for example, when project accounts and corruption, as well as for project preparation, are not yet established. 2 These are UNDP, UNICEF, FAO, HABITAT, UNOPS, UNESCO, UNFPA, ILO, UNHCR, WFP and WHO. 29 implementation and supervision. It applies only to Nations signatories, not just from trust funds in United Nations– or WB–administered trust funds crisis settings, and essentially provides for the for crisis, post-crisis, emergency and humanitarian use of United Nations financial management interventions, not to funds from IBRD, IDA or the rules, including on audits. It applies automatically WB’s own budget. The WB, in the 2008 Board Paper and does not require extra steps to trigger it. that embedded the agreement in the broader WB While it has been useful in overcoming financial policy framework, required all donors to a trust management incompatibilities, standard WB rules fund to agree, in their Administration Agreements would still usually apply for procurement and project or addenda to these, that the FPA could be used preparation and supervision, as well as social and by that fund. environmental safeguards, all of which can create challenges for United Nations implementers. The 92. The FPA includes a template disbursement FMFA has 23 United Nations signatories, listed at agreement (FPA annex 2A) that is signed between the FMFA link above. the WB, as administrator of the funds and the United Nations agency, who must be an FPA signatory. 95. Programme management fees for direct The Board paper and United Nations partnership implementation by United Nations agencies for focal points can provide further guidance on the WB would normally be capped at 7 percent structuring operations using the FPA. The following (with the other costs being recovered as direct section covers United Nations transfers to the WB costs), which is the agreed UNDG inter-agency under the FPA. rate (including implementation for the WB). 93. A joint UN–WB review of FPA use (2014), 96. For joint initiatives in mission settings, if concluded that the FPA had been helpful when WB funding is to be used to cover aspects of the used, though use has been less than expected. mission-executed component, for example the Recommendations included a strengthening of costs of construction materials, fuel and local labour, advisory and troubleshooting support on both it is usually necessary for a United Nations agency sides and that the WB consider expanding FPA to receive and manage these funds. Most missions applicability to a wider range of trust funds or do not have the capacity to do this themselves. other funding sources, or perhaps to non-fragile, UNDP and UNOPS can fulfil this role, as illustrated non-emergency contexts. An updating of the WB’s in the joint road building example in Box 8. own framework for FPA use, as set out in the FPA Board Paper, is needed to reflect broader changes UNITED NATIONS IMPLEMENTATION OF such as new Investment Lending policy (OP 10.00). WORLD BANK ACTIVITIES 94. When the FPA does not apply, direct 97. The WB can also directly contract United transfers to United Nations agencies can take Nations agencies for activities such as analysis advantage of the 2006 Financial Management that support the WB’s work programme as long as Framework Agreement (FMFA). This offers less the resources involved are from a Bank-executed flexibility than the FPA but is more broadly source (such as the WB’s own budget or certain applicable. It covers all direct WB grants to United trust funds). In such circumstances, the WB can 30 contract United Nations agencies as vendors donors: a WB trust fund, set up for the purpose under WB corporate procurement rules. The WB if necessary, would receive and administer and several United Nations agencies have agreed the funds under a standard WB administration to include specific United Nations Terms and agreement, with funds to be administered Conditions as additional language to the standard according to WB rules and procedures. If the WB corporate procurement contracts. An overview funds are to go toward WB–executed activities of these rules and current opportunities is here. of less than $1 million, they may be transferred under a simpler structure known as an Externally Funded Output (EFO). UNITED NATIONS FUNDING OF WORLD BANK ACTIVITIES 100. In cases where the FPA would apply (see 98. United Nations funding of WB activities paragraph 68), United Nations resources may is rare, given that the WB is primarily a financier be transferred to a WB–managed trust fund for rather than an implementer of development implementation by the WB under its own rules activities. Potential cases include support from and procedures. The FPA is fully reciprocal and United Nations trust funds for the contribution of includes an agreed template (a Memorandum of WBG expertise to United Nations programmes, Understanding set forth in its annex 2B) based on and support for joint programmes in which parallel the standard United Nations MPTFO administration financing of activities is not feasible, for example, agreement, for United Nations transfers to WB in post-conflict settings where the WB has not yet trust funds. This covers only WB execution, not the re-engaged. implementation of government projects financed by the WB. To date, the FPA has not been used to 99. The WB will normally seek to apply the cover WB implementation, though this has been same rules to United Nations bodies as to other considered in several cases. 31 ANNEX: MAIN CONTACTS FOR UNITED NATIONS-WORLD BANK PARTNERSHIP SUPPORT ORGANIZATION NAME CONTACTS UN System Jago Salmon, UN-WB Partnership Advisor +1 (917) 367 5741 salmon@un.org DPA Lydiah Kemunto Bosire, +1(212) 963-4751 Policy Planning Unit bosire1@un.org DPKO Oliver Ulich, Head, Partnerships Team +1(212) 963-8263 ulich@un.org Joya Rajadhyaksha, +1 (212) 963-0088 Partnerships Coordination Officer rajadhyakshaj@un.org MPTF Office Henriette Keijzers, +1(212) 906-5337 Deputy Executive Director henriette.keijzers@undp.org PBSO Henk-Jan Brinkman, Chief, Policy, Planning and +1(212) 963-0936 Application Branch Brinkman@un.org UNDP Shani Harris, Team Leader – Financial Institutions +1 (212) 906-6460 and Innovation Partnerships shani.harris@undp.org Mariana González Migueles, Partnerships Specialist +1 (212) 906-5295 mariana.gonzalez@undp.org UNDOCO, Dena Assaf, Deputy Director +1 (212) 906-5272 Including UN–WB dena.assaf@undg.org Trust Fund Anja Bille Bahncke, +1 (212) 906-5408 Policy Specialist (Crisis and Post-Crisis) anja.bahncke@undg.org UNFPA/ Mira Ihalainen, UNFPA Partnership Specialist +1 (212) 297-5298 UN–FMOG ihalainen@unfpa.org 32 ORGANIZATION NAME CONTACTS UNICEF Nalinee Nippita, Senior Advisor +1(212) 327-7623 nnippita@unicef.org Frank Borge Wietzke, Public Partnerships Specialist +1(212) 326-7011 fbwietzke@unicef.org Uwe Steckhan, Public Partnerships Specialist +1(212) 326-7463 usteckhan@unicef.org Ozge Aydogan, Public Partnerships Specialist +1(212) 326-7563 oaydogan@unicef.org UNOPS Felipe Muñevar, Head of Office and Partnerships +1(202) 454-2103 Advisor, Washington Partnerships Office felipem@unops.org Clare Gardoll, International Affairs Officer, NY Office +1(212) 317-4725 cgardoll@worldbankgroup.org WB Anne-Lise Klausen, Senior Operations Officer - +254 (20) 293-6123 Partnerships, FCV Group (Nairobi) aklausen@worldbank.org 33