9:45 – 11:15 Session One

Strategic Directions for Development ImpactChair:

Nena Stoiljkovic, Vice President, Business Advisory Services, IFC

Presenter: Joachim von Amsberg, Vice President, Concessional Financeand Global Partnerships (CFP), WB

Panel:Mark Bowman, Director General, DFID, United KingdomPer Knutsson, Head, Multilateral Coordination Unit, SIDA, SwedenJennifer Adams, Director, Office of Engagement, USAID, USA

3

Strategic Directions for Development ImpactJoachim von Amsberg

Vice PresidentConcessional Finance and Global Partnerships (CFP)

World Bank

Session 1May 21, 2013

The World Bank Group

WBG Strategic Framework3

WBG and Development Partners4

Implications for Joint WBG – Partners Work5

2

4

Why We Work Together1

Changing Global Economic Landscape

Why We Work Together

Timor LesteTranslating Growth into Lasting and

Inclusive Development

50%reduction in school dropout rates and 2,780 classrooms

rehabilitated

61 yearslife expectancy raised

from 56 years oldbetween 2000 and 2008

Sudan Fighting High Maternal

Mortality

28% increase in births attended by skilled health staff from 2010 to

2012

Moldova Improving Power

Transmission

AfghanistanA Global Partnership

supporting reconstruction

ZambiaIncreasing Access to Malaria

Interventions 24% increase in the number of

households owning a least one insecticide-treated net

53% drop in malaria parasitemia

VietnamAccess to All-Weather Roads

210,000 people lifted out of

poverty.

7,600 kilometers of roads and

26,000 meters of bridgesrehabilitated

21 million people reached through the

National Solidarity Program, of which 35% have been women

22% reduction in electrical grid

losses between 2002 and 2007

Changing Global Economic Landscape

6

Ending poverty is finally within reach

High growth in MICs and LICs driving global trade and investment Massive foreign direct investment & other private flows,

mainly to MICs ODA has played a key role in LICs “New” donors providing trade and investment finance,

South-South knowledge exchange Significant progress in poverty reduction and other MDGs If growth momentum is maintained, extreme poverty could

drop to 6% in IDA countries by 2030

Changing Global Economic Landscape

7

Success requires addressing risks

Slow down in economic growth can delay progress by half a century

Areas of focused attention include: Better leverage of public and private resources to support

growth and service delivery

Tackle growing inequality, particularly in resource rich countries

Address global challenges such as climate change, recurrent crises, security

8

WBG Strategic Framework

WBG Goals

End Extreme Povertythe percentage of people living with less

than US$1.25 / day to fall to 3 percent by 2030

Promote Shared Prosperityfaster income growth of bottom 40%

population in every country

Achieving the goals must be sustainable in the long term – environmentally, socially and fiscally

Serve Poor and Vulnerable People Everywhere

Recognize the Diversity of Clients

Focus on Development Solutions

Work as One World Bank Group

Exercise Dynamic Selectivity

Building Blocks

9

1.2 billion people live on less than $1.25 a day, 2.7 billion live on $1.25 billion-$4.0 a day

Focus on poor people and vulnerable in all countries Large and small Across a spectrum of income levels Different institutional capacity – FCSs will require

special attention

WBG Strategy- Building Blocks

Serving the poor and vulnerable everywhere

10

Engage a diversity of clients at country level Public sector, including different levels of government Private sector clients

Engage at the global level in critical areas: Promote collective action Deliver global public goods Support global agenda

WBG Strategy- Building Blocks

Recognize the diversity of clients

11

Leverage private and public resources for greater development impact

Maximize synergies of each WBG institution, while recognizing distinct client focus

Enhance consistency in policies, processes, and complementarity

Better share resources across the institution

WBG Strategy- Building Blocks

Working as one World Bank Group

12

With a line of sight to goals

Responding to client needs

Based on WBG comparative advantage

Evidence-based

WBG Strategy- Building Blocks

Focus on development solutions

13

Dynamic selectivity: three lenses

Impact Comparative

AdvantageLine of Sight

Focused WBG Programs

WBG Strategy- Building Blocks

14

FIFs

Serving diverse clients with a range of financing instruments

WBG and Development Partners

Investors

Un-earmarked

earmarked

loans, investments

grants

grants, investments

grants, concessional

credits

IBRD, IFC, MIGA

Capital

IDA Fund

Trust Funds

IFCTrust Funds

Resu

lts

Clie

nts

15* Excludes capital subscriptions for IBRD , IFC, MIGA

Partners’ Contributions to WBG FY08-FY12, $ billion

IDA 39.5 (44%)

IBRD/IDA TFs 20,3 (22%)

FIFs 28.3 (31%)

IFC TFs 2.3 (3%)

World Bank Group concessional finance portfolio

WBG and Development Partners

16

Concessional Finance Business Lines: Disbursements, FY12Hi

ghN

one

Single donor

Multi-donor

Wor

ld B

ank

Ope

ratio

nal C

ontr

ol

Level of Pooling ofConcessional Funds

Trust Funded Partnership ProgramsUS$1.8 bn

Trust Funded Country OpsUS$2. bn

IDAUS$14.8bn

FIF Partnership ProgramsUS$5.1 bn

WBG and Development Partners

• Un-earmarked, country-driven, performance-based• Finance and policy advice to 82 poor countries • Ranked as one of most effective by external reviews

• Makes all assistance more effective and sustainable

• Harness WBG expertise and synergies with IFC and MIGA

• From debt relief, to food and economic crises, to fragile states

• Leader in Open Data and access to information

• Strong results track record, leader in results measurement, flat budget

17

Why invest in IDA?

An effective delivery platform

Builds Institutions and local capacity

Leverages public & private resources & knowledge

Responds to complex, global issues

Transparent and accountable

Delivers results, cost effectively and efficiently

WBG and Development Partners

18

WBG and Development Partners

For the World Bank Group Fragile & Conflict States, non-member states, countries in arrears Crisis and emergency response Piloting innovation Technical assistance, advisory services Engagement with Civil Society Organizations Global Public Goods and global policy issues

For Partners Targeted support in areas of limited or no presence Visibility, influence, fiduciary controls, low administrative costs

For Clients Access to grant financing, low transaction costs

What is the role of Trust Funds?

19

Implications for Joint WBG – Partners Work

Emerging World Bank Group Strategic Framework

Country-driven model -- as a base• Country Assistance/ Partnership Strategies: expanding the

range of country partners – public, private, Non-governmental Organizations

Corporate Priorities • Link to main strategic goals, comparative advantage, impact• Focus could be sectoral, thematic, Global Public Goods,

and/or geographic • Purpose: maximize impact, branding, partnership,

corporate and regional fundraising

How do we work together to maximize impact?

20

Implications for Joint WBG – Partners Work

• Who do you see the emerging WBG strategy influencing the way we work together?

What are the expectations and guidance of development partners on the implementation of the WBG strategy at the ‘country’ and ‘global’ levels?

What are the implications for the WBG concessional finance business lines, such as IDA and trust funds?

Questions for discussion