IDA Summary2

7/30/2019 IDA Summary2

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InternatIonal Development assocIatIon

sector summarIes

IDatWorK

Results in

Sustainable

Development-Overview-

ob 2010

sustaInaBle Development netWorK


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d | IDA at WORK: Extractive Industries Transparency Initiative


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IDA at WORK: Sector Summaries | 1

c

Foreword 3

Agriculture 4

Climate Change 6

Community Driven Development 8

Disaster Risk Reduction 10

Energy 12

Environment and Natural

Resources Management 14

Extractive Industries

Transparency Initiative 16

Global Food Crisis Response 18

Information and

Communication Technology 20

Land Tenure Policy 22

Mining 24

Social Development 26

Transport 28

Urban Development 30

Water Resources 32

Water Supply and Sanitation 34


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2 | IDA at WORK: Extractive Industries Transparency Initiative


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IDA at WORK: Sector Summaries | 3

sector summarIes - ForeWorD

Results inSustainable

Development-Overview-

The International Development Association (IDA) is the World Banks und or the poorest. One o the worlds

largest sources o aid, IDA provides support to the 79 least developed countries. These countries are home to 2.5

billion people, 1.5 billion o whom survive on $2 a day or less.Over the last ten years many countries have made signicant progress in closing the gap to reach the Millennium

Development Goals (MDGs), yet signicant challenges remain. The path to bridging this gap has become even harder

given the impact o the recent ood, uel and global economic crises. Embracing the triple bottom line o sustainability

economic, environment and social - is critical or poverty reduction and achievement o the MDGs.

IDAs role in providing nancial resources, supporting policy and institutional reorms, ostering knowledge transer,

increasing donor coordination, and leveraging additional nancing has helped transorm the lives o hundreds o millions

o people. IDA has helped to increase access to inrastructure services, improve service delivery, raise agricultural

productivity, promote inclusive and accountable institutions, improve governance o natural resources, mitigate disaster

risk, and promote green development. Also notable are IDAs eorts to engage in issues o a global nature, such as

climate change and ood scarcity, as well as to integrate environmental and social considerations in the projects and

programs it supports.

This booklet describes results o such IDA-supported projects and programs. The booklet is accompanied by a

series o separate sector specic bries (www.worldbank.org/sustainabledevelopment/idaresults). The inormation and

case examples you nd in this booklet, as well as the more detailed bries provide an illustration o not only what has

been accomplished, but also what more remains to be done.

Inger Andersen

Vice President

Sustainable Development

The World Bank


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4 | IDA at WORK: Agriculture

Three-quarters o the worlds poor live in rural areas,

and most o them engage in arming or their liveli-

hoods. It accounts or one-third o gross domestic

product and three-quarters o employment in

Sub-Saharan Arica, and or more than 80 percent o

reshwater use worldwide. Independent research

shows that agricultural growth is especially pro-poor,

but also that it is particularly at the mercy o climate

change. It is by its nature a central challenge or the

productive use o the International Development

Association (IDA) resources.

CHALLENGE

The World Development Report 2008: Agriculture

or Developmentwas endorsed by donors and, or

the rst time since the 1980s, led to a broad,

renewed consensus on the importance o agriculture

or development. The Report and the response to the

recent ood crisis have emphasized our key needs

that can and must be met by agriculture in many

developing countries including: reducing poverty,

eeding the world, mitigating eects o climatechange, and supporting economic transormation.

ApproACH

The World Bank Group in consultation with its

clients has committed to a signicant expansion in

support o agriculture. The World Bank has prepared

an Agriculture Action Plan or the scal years 2010-

2012 that seeks to conront these challenges by

addressing ve critical themes: raise agricultural

productivity, link armers to markets and help them

earn more, reduce risk and vulnerability, acilitaterural non-arm income, and enhance environmental

services and sustainability.

Over the past ten years, the IDA allocation to

agriculture fuctuated between US$490 million in

FY01 to a high o US$2.16 billion in FY09 and

US$1.38 billion in FY10. The largest share o re-

sources or agriculture has gone to Sub-Saharan

Arica (55 percent in FY06FY10, up rom 45 percent

in FY01FY05), while South Asia was the second

largest beneciary. IDA Development Policy Lending

to agriculture almost doubled rom an average o

US$119 million over FY01-05 to US$227 million over

FY06-10. Development policy operations generallyprovide quick access to nancial assistance in

support o a range o development objectives that

require underlying medium-term policy and institu-

tional activity. This approach is critical in smallholder

agriculture where a large number o actions need to

occur in sequence to allow armers to produce more

and to sell into expanding, but more demanding,

agricultural markets.

rEsuLts

The Bank has had a number o successes inIDA-unded operations or agriculture. Some

examples are:

TheMauritania Rain-Fed Natural Resources

Management Project (FY97) reorested and

protected common land through investments in

soil and water conservation. Impact analysis

showed that yields averaged 800 kg/ha with the

project, compared with 100 kg/ha without the

project. Women have beneted rom closer

access to water and rom cash income rom

village gardens and market stalls.

IDA a WorK: agi


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IDA at WORK: Agriculture | 5

TwoprojectssetouttorestoreChinas heavily

degraded Loess Plateau (FY94, FY99) through

one o the worlds largest erosion control pro-

grams with the goal o returning this poor part o

China to an area o sustainable agricultural

production. Between FY94-06, more than 2.5

million people in our o Chinas poorest provinces

were lited out o poverty.

TheAfghanistan Emergency Irrigation Rehabilita-

tion Project (FY03), despite numerous challenges,

helped rehabilitate multiple irrigation systems,beneting over 600,000 households in all 34

provinces. The project has introduced innovative

ways o supervising in insecure areas by, or

example, using geo-reerenced photos and videos

to monitor and report progress.

pArtNErs

The closer coordination o various donor eorts in

agriculture and rural development in the poorest

countries o the world is promoted by, among

others, the World Bank-supported Global DonorPlatorm or Rural Development, established in 2004.

In 2005, the platorm started piloting harmonization

eorts in line with the Paris Declaration on Aid

Eectiveness in our IDA countriesBurkina Faso,

Cambodia, Nicaragua, and Tanzania. The Bank also

supports critical global public goods by unding and

collaborating with the Consultative Group on

International Agricultural Research.

MovING ForWArD

Recently approved IDA agricultural projects tend

to refect a strategic view o agriculture as an engine

o inclusive growth and economic diversication

along private sector supply chains in the context o

policy and regulatory reorms, inrastructure develop-

ment, institution building and skills development by

the public sector. IDA as a partner in development

should continue to invest in key international public

goods that acilitate improved agricultural production,

including enhanced productivity and better gover-nance over the use o natural resources or the

benet o the overall population. Beyond production

and resource management, it is vital to assist clients

with market access. Enhanced participation in the

ongoing rapid development o agriculture and natural

resource-related value chains requires building the

capacity o both poor people and poor countries to

meet ever more stringent reliability, quality, biosaety,

sanitary or phytosanitary, and ood saety standards,

and building the institutions that allow them to

achieve market recognition or better compliance interms o higher prices and larger sales volumes.

The full sector notes that are summarised here can be found at www.worldbank.org/sustainabledevelopment/idaresults


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6 | IDA at WORK: Climate Change

Support in creating climate-resilient poverty reduction

and development paths has become a development

imperative. The poorest and most vulnerable coun-

tries will suer most rom the impacts o climate

change. In the past year the International Develop-

ment Association (IDA) has had unprecedented

demand rom many countries or support in their

eorts to address development and climate change

challenges. IDA countries also ace the challenge o

planning or and investing in low carbon solutions.

IDA has responded with a broad range o assistancethrough an eective combination o nancial and

other resources.

CHALLENGE

Climate change is a major threat to the achieve-

ment o the Millennium Development Goals in

developing countries, and hard-earned development

gains in all regions o the world. With climate change

already happening and with more severe impacts to

ollow, it is recognized that development planning

and nancing strategies need to consider the risksassociated with climate change. Given that the

challenge o conronting climate change impacts cuts

across all sectors, IDA is an appropriate platorm to

inject climate change actions into country-level

strategies, particularly in the area o adaptation.

ApproACH

Meeting the climate challenge needs to be

achieved through supporting country-led develop-

ment strategies and priorities while helping countries

take advantage o new economic, capacity building

and nancing opportunities that arise rom the global

climate change agenda.

rEsuLts

In Bangladesh, more than a million households

without access to electricity are now getting o-gridsolar power thanks to a US$130 million project

unding rom IDA. The joint World Bank and Interna-

tional Finance Corporations (IFC) Lighting Africa

program seeks to provide up to 250 million people

in Sub-Saharan Arica with access to non-ossil uel

based, low-cost, sae, and reliable lighting products

with associated basic energy services by the year

2030.

Making development climate-resilient has

emerged as a major theme in supporting povertyreduction and economic growth in Sub-Saharan

Arica. From addressing drought risk in Ethiopia

(US$175 million o IDA unds) to watershed manage-

ment in Kenya and Malawi (a total o US$75.5

million), Arica is rapidly increasing its eorts to

grapple with development challenges in a changing

climate.

IDA a WorK: ci chg


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IDA at WORK: Climate Change | 7

pArtNErs

IDA continues to play a crucial integrating role in

leveraging additional development unds as well as in

providing a comprehensive development platorm or

its clients. Among IDAs partnerships or climate

action:

DevelopmentoftheClimateFinanceKnowledge

Platorm with the UN Development Programme

(UNDP) as part o a coordinated UN response will

be a valuable tool or IDA countries. A prototypeis online which is being continually enhanced.

UNDP and the World Bank have allocated seed

unds while und raising with donors is ongoing.

InMarch2010,theWorldBankandtheUNDP

were designated as the rst Multilateral Imple-

menting Entities o the Adaptation Fund.

JointimplementationoftheClimateInvestment

Funds by the Multilateral Development Banks

begun with current pledges o US$6.3 billion.

TheForestCarbonPartnershipFacilityincludes

37 tropical and sub-tropical countries; has

mobilized US$165 million and made 11 grant

allocations or readiness work. The Carbon

Partnership Facility will broaden the impact o

carbon nance (became operational in May 2010

with 100 million Euro in commitments already

made).

MovING ForWArD

The World Bank Group will step-up eorts to

complement development assistance through

instruments such as IDA with specialized grant-

based resources to address additional climate risks.

The Bank Group will explore options or IDA-support-

ed programs to have access to substantial and

predictable complementary adaptation unding.

Further attention will be given to helping clients and

partners understand and manage the adaptation-

development linkages in dierent contexts, particu-larly through learning by doing rom the Pilot Program

or Climate Resilience, sharing lessons rom other

adaptation-related programs, and accelerating the

work on methodologies or vulnerability assessments

and climate risk screening.



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8 | IDA at WORK: Community Driven Development

Community driven development (CDD) an ap-

proach that gives control o development decisions

and resources to community groups has been a

key operational strategy or delivery o International

Development Association (IDA) programs over the

past decade. IDA lending or CDD has averaged

US$1.3 billion per year with the number o active

CDD operations gradually increasing since 2000.

CDD operations have proven successul at reaching

and empowering communities, delivering cost-eec-

tive inrastructure, enhancing livelihoods, andimproving community dynamics.

CHALLENGE

By emphasizing empowerment and putting

resources in the direct control o community groups,

the CDD approach holds the promise o achieving

inclusive and sustainable poverty reduction. The

approach emerged originally in response to the local

institutional challenges aced by several countries

such as Indonesia, Rwanda and Sierra Leone

emerging rom nancial or political crises in the late90s. In such situations, it became clear that a

reliance on a centralized, top-down, and pre-planned

approach to development assistance that involved

little participation o local people would not be

eective. Over time, recognizing the vast dierences

in local contexts, the need to strengthen local

institutions, and in an eort to oster greater owner-

ship and support or development over 70 IDA

member countries have undertaken projects with a

CDD approach.

Despite this rapid expansion o CDD, the ap-proach still aces challenges such as ensuring

sustainability and links with decentralization reorms,

reaching the most vulnerable within communities,

expanding to large scale national programs, and

adding to the existing evidence base on impacts

rom CDD operations.

ApproACH

IDA has used CDD approaches to support a wide

range o local development and service delivery

needs identied by communities themselves. This

has included water supply and sewerage rehabilita-

tion, school and health acilities construction,

nutrition programs or mothers and inants, building

o rural access roads, and support or livelihoods and

microenterprise. CDD has also proven useul in

responses to natural disasters and increasingly, the

CDD approach has also become the preerredoperational strategy or economic reconstruction,

ostering social cohesion, and bottom-up state

building in post-confict and ragile situations.

rEsuLts

Given the demand-driven and dispersed nature o

CDD operations, it is dicult to provide an aggregate

summary o their overall results. Instead, summarized

below is a snapshot o results achieved by select

CDD projects unded by IDA across dierent regions

over the past decade: Kecamatan Development Program, Indonesia

(US$771 million over three projects): Eighteen

million people are beneting rom better services,

which include more than 37,000 kilometers o

constructed or rehabilitated local roads, 8,500

built or rehabilitated bridges, 9,200 new water

supply units, and 3,000 new or improved health

posts. Evaluations show that per capita consump-

tion gains among poor households were 11

percent higher, and the proportion o households

moving out o poverty was 9.2 percent higher, inproject areas than in matched control locations.

Andhra Pradesh Rural Poverty Reduction

Project, India (US$150 million plus US$65 million

additional nancing): As o May 2010, 10.7 million

rural poor women were organized into communi-

ty-based organizations that collectively save over

US$1.6 billion and leverage credit over US$5.8

billion rom commercial banks.

IDA a WorK: ciy Di D


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IDA at WORK: Community Driven Development | 9

Social Investment Fund Project V, Honduras

(US$ 63.6 million): Around 2.5 million people are

beneting rom a total o 2,888 projects that have

delivered 1,446 rehabilitated schools, about 700

new schools, 163 new health centers, 347 small

water/sanitation systems, and 461 latrines.

Additionally, all children in targeted areas are

attending primary school. In project communities,

there has been an increase in access to health

care assistance, and more communities have

access to running water. Rural Investment Project, Azerbaijan (US$ 15

million plus US$15million additional nancing):

Travel time to school and markets has been

reduced by 47 percent and 26 percent respec-

tively where the project has rehabilitated rural

roads. Moreover, 78 percent o arm products are

now transported to markets by armers them-

selves, a signicant advantage compared to

non-beneciary villages in the same region where

only 18 percent o arm produce is brought

directly to market by armers.

pArtNErs

IDA has worked with several national, regional,

and global partners in supporting its CDD programs.

Many prominent CDD operations such as the

Aghanistan National Solidarity Program and the

IndonesiaKecamatanDevelopmentProgramhave

received unding also rom other bilateral and

multilateral donors such as the Asian Development

Bank. At the corporate level, several donor trust

unds (such as the Norwegian and Finnish TrustFund or Environmentally and Socially Sustainable

Development and the Bank Netherlands Partnership

Program) have provided resources or CDD tool

development, capacity building and impact research.

From 2003-08 a partnership with the International

Fund or Agriculture and Development ocused on

improving CDD programs specically or the Arica

region.

MovING ForWArD

While deepening its lending programs or local

and community driven development, in the coming

years, IDA will ocus its analysis and program

guidance in several areas:

CDDinconict,post-conict,fragileanddisaster

management contexts;

Womensempowermentandyouthinclusionin

CDD;

DevelopmentofnationalCDDprogramsthrough

local development platorms; Linkingwiththeprivatesectorforbothproductive

livelihood projects and public welare programs;

Impactevaluationandparticipatorymonitoring;

UsingCDDapproachesforclimatemitigation,

adaptation and resilience at the community level.



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10 | IDA at WORK: Disaster Risk Reduction

The International Development Association (IDA) is

improving the ability o vulnerable developing

countries to manage disaster risks as well as

respond to disasters, but challenges remain. Newer

vulnerabilities are emerging aster than capacities are

developed. IDA is addressing these challenges by

helping making Disaster Risk Reduction (DRR) a

strategic priority in country development strategies

and ensuring predictable pre- and post-disaster

nancing. Results can be seen in IDAs assistance in

the wake o natural disasters in Bangladesh, Yemen,and Haiti.

CHALLENGE

The impact o natural disasters is higher in poorer

countries partly due to their insucient capacity to

manage risks beore and ater disasters. Several

actors contribute to overall low capacity in disaster

risk management: poor institutional arrangements;

lack o proper monitoring o risks; lack o disaster

preparedness measures and early warning systems;

lack o risk-reducing measures such as land useplanning, building codes; and lack o means to

nance damages. At the same time, climate change,

haphazard urbanization, and environmental degrada-

tion continue to add new vulnerabilities.

ApproACH

IDA has responded to the challenges posed by

disasters in multiple ways. First, more IDA countries

are making DRR a strategic priority in their national

development strategies. Analytical and advisory

services in the areas o disaster risk governance,disaster risk assessment and monitoring, disaster

risk mitigation, disaster risk nancing, disaster

preparedness, climate adaptation and sustainable

recovery have been scaled up. Second, in the

atermath o major natural disasters, Post Disaster

Needs Assessments (PDNAs) have been carried out

in several IDA countries, allowing the ormulation o

longer-term strategy and action plans or sustainable

recovery and reconstruction. PDNAs are led by the

aected governments with the participation o their

development partners. Third, IDA has employed a

mix o lending instruments such as Emergency

Recovery Credits and Development Policy Credits to

nance post-disaster recovery and reconstruction as

well as ex-ante risk reduction projects: an average o20 disaster-related projects per year have been

approved in IDA countries since 1984. Overall in

recent years, there has been a gradual shit in how

IDA countries are handling disasters, that is, rom

being ocused on responding to disasters as they

strike, to a mix o ex-post recovery and ex-ante risk

reducing actions. By ensuring increased resilience to

disasters, IDA is able to support countries reduce

their vulnerability to disasters that can undermine

decades o investments and economic development.

rEsuLts

IDA countries have benetted rom over 100

disaster-related projects in the past ve years. For

example, in 2007, IDA provided a US$109 million

credit to help nance recovery rom the damage and

losses caused by Cyclone Sidr in Bangladesh. This

project benets about 1.7 million households,

supports the construction o approximately 50 new

shelters and repairs to another 250 existing multi-

purpose shelters, and rehabilitation o over 100 km o

embankments. In 2009, IDA provided US$35 millionin additional nancing to assistYemens reconstruc-

tion ollowing storms and foods in 2008. The project

improves emergency response eectiveness and

restores livelihoods aected by the damage to the

agriculture, housing, transport and inrastructure

sectors.

IDA a WorK: Di rik rdi


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IDA at WORK: Disaster Risk Reduction | 11

Also, ollowing the 2004 hurricane season, the

CARIBBEAN COMMUNITY (CARICOM) Heads o

Government, which also includes Haiti, requested

World Bank assistance in improving access to

catastrophe insurance. The worlds rst regional

disaster nancing acility, the Caribbean Catastrophe

Risk Insurance Facility (CCRIF), was established in

2007 to provide a solution to the short-term liquidity

needs o Caribbean governments in the atermath o

a disaster. Within two weeks o the 2010 Haiti

earthquake, CCRIF transerred US$8 million toprovide immediate liquidity to the government.

Following the 2005 earthquake in Pakistan, the

World Bank committed around US$875 million in the

rst two months ater the earthquake, which subse-

quently grew to approx. US$1 billion. Signicant

achievements include the early provision o shelter

support to 550,000 people; the development and

implementation o completely transparent grant

disbursement mechanisms; and the reconstruction

o more than 400,000 earthquake-resistant houses.

pArtNErs

The World Bank works with 18 other donors,

through the multi-donor trust und established under

the Global Facility or Disaster Reduction and

Recovery or a coherent approach to investing the

nancial resources committed collectively, thereby

enabling eective donor harmonization in keeping

with the Paris Principles. This Facilitys governing

body or policy-making and strategic direction is

composed o donors rom the Organisation or

Economic Co-operation and Development, emergingeconomies, developing countries, as well as the

United Nations/International Strategy or Disaster

Reduction, the United Nations Development Pro-

gram and the International Federation o Red Cross

and Red Crescent Societies to ensure that the voices

o the most vulnerable are refected in the Facilitys

governance.

MovING ForWArD

IDA in recent years has stepped up its support to

manage disasters and disaster risks, both ex-ante

and ex-post, however challenges remain. The rst

and oremost challenge is nancial. Although IDA has

allowed access to exceptional resources or recon-

struction and recovery, its capacity to respond to

disasters remains limited. IDA is currently working on

a proposal or a permanent Crisis Response Window

that will allow or simplied triggers that would enable

timely, predictable, adequate and transparent crisisresponse. Coordination among development

partners at country level is the other signicant

challenge in both pre- and post-disaster operations.

IDA will work closely with development partners at

the country level to support governments in their

disaster risk reduction eorts.



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12 | IDA at WORK: Energy

Reliable, aordable, and sustainable energy services

or agriculture, industry, commerce and households

underpin growth in productivity and output, and

improve the welare o the poor. However, in many

International Development Association (IDA) coun-

tries, households and enterprises lack service

altogether or suer high cost and unreliable energy

supplies. In scal year (FY) 2010, the total cost o

energy projects with IDA participation was about

US$2.7 billion, o which IDA nanced US$1.36 billion.

IDA resources have improved access and reliability toenergy supply and are acilitating the shit towards

lower-carbon options o energy supply.

CHALLENGE

For the past ten years, under-investment in the

power sector in IDA countries has resulted in a huge

and growing power supply shortall, unreliable

services and slow progress in connecting poorly

served populations. The challenge o providing

reliable access is now balanced with rising concerns

about climate change, and adapting to ensuresecurity o power supply in the uture.

ApproACH

IDAs ocus has been on improving access to, and

reliability o, modern energy services, while at the

same time addressing the underlying policy and

institutional issues that have contributed to the lack

o investment in the sector. In addition, IDA is oten

the largest nancier o critical energy inrastructure,

and its investment and guarantees have played a

critical role in leveraging both public and privateinvestment. IDA is also increasingly supporting

decentralized renewable energy sources, which are

not just cleaner, but less costly and more aordable

solutions to improving access.

IDA credits and grants or energy projects

amounted to about US$1.36 billion in FY2010.

Lending to IDA countries rom the International

Finance Corporation, the Multilateral Investment

Guarantee Agency and trust unds, such as the

Global Environment Facility and Carbon Finance

reached US$577 million, in addition to the unds

provided directly by IDA, providing US$1.94 billion to

support energy access in IDA countries.

rEsuLts

In Bangladesh, IDA has been active or a decade

in the Rural Electrication and Renewable Energy

Development Project, helping connect more than

900,000 households through grid extensions and

solar home systems. With additional nancing

approved in FY2010, the government o Bangla-

deshs original target o just 50,000 new connections

through solar home systems has been revised to a

million systems by 2012, a twentyold increase.

In Bolivia, IDA has been working to provide

90,000 people in rural and peri-urban areas withelectricity since 2005 through the Decentralized

Inrastructure or Rural Transormation Project. In

rural, remote areas o Bolivia, where grid electrica-

tion is not economically viable, the project has

developed a new model to provide sustainable

access to solar electricity. Since project inception in

2005, more than 9,200 solar home systems have

been installed in the poorest rural areas o Bolivia,

beneting an estimated 45,000 people.

IDA a WorK: egy


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IDA at WORK: Energy | 13

In Kenya, IDA has engaged in the development o

geothermal energy in the Rit Valley or nearly 15

years, helping supply clean energy to the growing

economy.TheKenyaElectricityExpansionProject,

approved in FY2010, will help develop 280MW o the

countrys 7,000MW geothermal energy potential,

supplying about 20 percent o the required installed

generatingcapacityby2015,andreducingKenyas

reliance on hydropower energy, which is vulnerable

to drought.

pArtNErs

Given the tremendous challenge o ensuring

reliable energy access, IDA has worked with a

number o development partners, combining each

institutions capabilities and strengths. The projects

collectively leveraged twice their investment amounts

with nancing rom recipient governments, private

nancing, and development agencies. The Energy

Sector Management Assistance Program has helped

build capacity at public energy institutions and

helped governments develop plans or low carbongrowth. The Netherlands dedicated US$29 million in

FY2009 to support activities in Sub-Saharan Arica

through the Arica Renewable Energy Access Grants

Program. Finally, in FY2010, the Scaling Up Renew-

able Energy in Low Income Countries Fund, one o

the Strategic Climate Funds o the Climate

Investment Funds became active.

MovING ForWArD

Globally, IDAs strategy will seek to support:

(i) regional eorts to develop energy corridors that

could save sub-Saharan Arica US$2 billion a year in

electricity costs; (ii) policy, institutional and gover-

nance improvement o the energy sectors institu-

tions; (iii) sector-wide approaches to plan and nance

expanded access in a more systematic way while

acilitating donor coordination; (iv) energy eciency

programs; (v) low-carbon energy to tap into new

resources or climate nance and balance the needsor energy access; and (vi) modern biomass and

lighting programs and improved cooking stove

programs through public private partnerships.



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14 | IDA at WORK: Environment and Natural Resources Management

For the last 30 years, the International Development

Association (IDA) has contributed substantially to

policy reorms and institution building in environmen-

tal and natural resources management in the lowest

income countries. IDA has provided important

assistance in capacity building and investment or

pollution management and conservation o key

ecosystems. IDA has served a dual role o unding

and leveraging additional unds to achieve this

purpose.

CHALLENGE

The world today aces an array o both persisting

and new environmental challenges. Compared to

other countries, IDA countries are most dependent

on natural resources and are most exposed to the

impacts o environmental degradation. Over the past

twenty years, IDA countries experienced the highest

rate o deorestation, losing an average o almost

50,000 sq km o orest area annually. The level o

urban air pollution in IDA countries is among the

highest, and the access to reshwater resources isamong the lowest. Though many environmental

challenges o the past decade will persist into the

next, recent developments such as the energy,

ood price, and nancial crises, and climate change

have substantially changed the context in which

IDA operates and requires a resh approach to

environmental sustainability.

ApproACH

Building on the 2001 Environment Strategy o the

World Bank, the new Environment Strategy or the

World Bank Group aims at Greening Development

by transorming growth paths, leveraging natural

resources or growth and poverty reduction, and

managing the environmental risks to growth and

development. Over the past decade, IDA has lent

some US$5.2 billion to support investment in

environment and natural resource management

(ENRM). 15 percent o this portolio supportsenvironmental policy and institutions, indicating IDAs

commitment to improving governance and strength-

ening environmental policy and natural resource

management. In terms o areas o ocus, IDA credits

have been directed in large part to water resources

management (29 percent) and pollution management

and environmental health (22 percent).

rEsuLts

The ollowing projects exempliy what has been

achieved with IDA nancing: Inthe India Karnataka Watershed Develop-

ment Project (IDA US$100 million), IDA played a

key role in helping the government design a

project to test new participatory approaches or

integrated watershed planning and implementa-

tion. Results include soil and water conservation

works completed on over 200,000 hectares (ha),

improving average crop yields by about 24

percent and broadening crop diversity.

TheBosnia and Herzegovina Solid Waste

Projects 1 & 2 (IDA US$66 million total), targetpeoples exposure to garbage in open dumps,

which is one o the most serious public health

risks in urban areas. With six regional landlls

IDA a WorK: ei d n

r mg


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IDA at WORK: Environment and Natural Resources Management | 15

established by the end o the rst project in 2009,

almost hal o the countrys population is benet-

ing. The Nepal Power Development Project (IDA

US$9.3 million), launched in 2003, eatures a

Micro-Hydro Village Electrication component that

has successully increased rural access to

renewable energy sources and ormed a solid

oundation or scaling up impact. Steady expan-

sion o community-managed micro-hydro

systems has provided coverage to about 40,000

households in 40 target districts.

IDA has also prepared an average o 36 Analytical

and Advisory Activities a year over the past three

years, ocused on environment and natural resources

management. Among these, Country Environmental

Analyses have provided the analytical basis to

integrate environmental considerations into projects

and programs the Bank oers to support developing

countries.

pArtNErsIDA borrower countries take a leadership role in

preparing strategies that establish the priorities or

donor support. In each country, IDA works with

international and local development partners to

ensure that the strategy is carried out in a coherent

way and that IDA ocuses on areas where it has

comparative advantage. With respect to environmen-

tal sustainability, IDA mobilizes additional nancial

resources and coordinates assistance with the GEF,

bilateral agencies, and oundations. IDA also works

closely with environmental nongovernmental organi-zations through partnerships and implementation

agreements.

MovING ForWArD

The goal o the new WBG Environment Strategy is

to work with developing country partners to address

new and persistent environmental challenges while

working towards sustainable economic growth and

poverty eradication. The new Strategy has three

components: (i) transorming growth paths;

(ii) leveraging natural resources or growth and

poverty reduction; and (iii) managing the environmen-

tal risks to growth and development. Transorming

growth paths implies accelerating the diusion o lessenvironmentally harmul technologies. The second

component recognizes that natural resources are a

orm o capital, just like produced, human, and social

capital, and thus contribute to well-being. Finally, the

third component recognizes the need to make

growth and development resilient to environmental

risks.

The full sector notes that are summarised here can be found atwww.worldbank.org/sustainabledevelopment/idaresults


18/40

16 | IDA at WORK: Extractive Industries Transparency Initiative

The World Bank works to promote transparency,

accountability, and good governance in the use o oil,

gas, and mining revenues in resource-rich countries

through the Extractive Industries Transparency

Initiative (EITI). From an initial seven countries in

2004, the initiative has grown to include 25 IDA

countries that are now in various stages o imple-

mentation. EITI activities have helped improve

disclosure and reconciliation o extractive industries

revenues paid and received by governments, and

have oten set the stage or wider sector reorm,such as public nancial management or institutional

reorms.

CHALLENGE

Approximately 3.5 billion people live in countries

rich in oil, gas, and minerals. However, historically,

resource-rich developing countries have shown a

below-average growth perormance, and many have

suered rom endemic corruption and persistent

poverty due to weak governance and lack in trans-

parency. The EITI, launched in 2003, promotes andsupports improved governance and transparency in

resource-rich developing countries through the ull

publication and verication o company payments

and government revenues rom oil, gas, and mining.

ApproACH

The EITI was launched with two main objectives,

namely: (i) to disclose and reconcile extractive

industries revenues paid to and received by govern-

ments, and (ii) to promote and strengthen a multi-

stakeholder approach that includes governments,companies, and civil society. To achieve these twin

objectives, each participating country has to issue a

reconciliation report to which the countrys multi-

stakeholder group has agreed. Ater this has been

accomplished, the report is submitted or validation

to an independent auditor.

rEsuLts

Nigeria became the rst EITI-implementing

country with a statutory backing or implementing

EITI with enactment o the Nigeria EITI Act in May

2007. Reconciliation ollowing the initial audit report

reduced the discrepancy between the actual

revenues paid to and reported by the government to

US$16 million rom US$250 million.

Liberia launched its EITI process in 2006-2007

and issued its rst EITI reconciliation report in

February2009,coveringtheperiodJune2007-2008.The government expanded the Initiative to include

the orestry sector and has reached out to help EITI

implementation in Sierra Leone. Ranking or Liberia in

Transparency Internationals Corruption Perception

Index moved up to 97 out o 180 countries in 2009

rom 137 out o 158 countries in 2005, which has

contributed to an improved investment climate or

the extractive industries sector.

Mongolias mining law o 2006 has an article

obliging companies engaged in extractive industries

to report their payments to the government. In 2007,a government resolution mandated the government

institutions to report and be active in the EITI pro-

cess. While the government reported on revenues

rom 134 companies or 2006-07, it increased to 186

companies or 2007-08. Private companies are

engaged in the EITI with leading mining and explora-

tion companies reporting. Twenty-ve participated in

the rst reconciliation, 38 in the second, and 46 will

report in the third. The reconciliation ollowing the

initial audit report in February 2008 reduced the

discrepancy rom MNT 25 billion1 to MNT 775 millionin the second report in November 2009. The govern-

ment is presently in the process o drating an EITI

law and strategy or 2010-2014.

IDA a WorK: exi Idi ty Iiii

1 As o September 15, 2010, MNT 25 billion = $18.8million; MNT 775 million = $0.6million.


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IDA at WORK: Extractive Industries Transparency Initiative | 17

pArtNErs

From FY2005-2010, 13 donors (Australia,

Belgium, Canada, the European Commission,

Finland, France, Germany, the Netherlands, Norway,

Spain,Switzerland,theUnitedKingdom,andthe

United States) have contributed almost US$31

million to the MDTF. The trust und donors partici-

pate in a management committee (chaired by the

World Bank) that reviews and approves the overall

work program or use o trust unds.

In addition to the bilateral trust und donors listedabove, the World Bank works closely with the private

sector (such as International Council on Mining and

Metals, Standard Lie Investments), civil society

organizations (such as Open Society Forum Mongo-

lia, Green Advocates Liberia, Global Witness,

Revenue Watch Institute); other multilaterals (such as

the International Monetary Fund, the Inter-American

Development Bank, the Arican Development Bank,

the Asian Development Bank, the European Bank or

Reconstruction and Development and the European

Investment Bank), European Union, Arican Union,and the Organisation or Economic Co-operation and

Development in promoting and implementing EITI.

MovING ForWArD

EITI is a core part o the World Bank Group

strategy or oil, gas, and mining and the Groups

Governance and Anti-corruption Strategy o 2007.

IDA, with the support o the trust und donors, is

well-positioned to meet country demand and to

support countries in their goals o better governance

in oil, gas, and mining sectors, beyond the EITI.Further, country programs and individual Country

Partnership Strategies in IDA countries are increas-

ingly emphasizing implementation o the EITI as both

a reestanding objective and as a platorm or

urthering the reorms agenda and moving toward

greater accountability and good governance and

management. In this respect, both IDA and the

multi-donor trust und are piloting programs o

ongoing support that aim to: (i) help countries to

consolidate and deepen the EITI; and (ii) continue the

governance reorms building on the platorm o EITI

structures and transparency.



20/40

18 | IDA at WORK: Global Food Crisis Response

The sudden spike in ood prices during 2008 brought

with it civil unrest in many countries, and the threat o

reversal o hard-won progress or many o the

worlds poor. By mixing ast-track unding with trust

und grants, the International Development Associa-

tion (IDA) was able to help millions o people con-

ronting the crisis while also supporting reorms and

policies in countries determined to prevent a repeat

o such a shock in the uture.

CHALLENGE

International grain prices increased signicantly in

early 2008, resulting in sharp increases in staple ood

costs in many developing countries. Soaring ood

prices were a contributing actor to civil unrest in

nearly 40 countries. Prices o inputs or ood produc-

tion such as uel and ertilizer also tripled ater

January2008,undercuttingtheprotabilityofmany

smallholder producers even as their own ability to

eed their amilies was decreasing. The spike in ood

prices in 2008 risked reversing progress in reducing

malnutrition and the likelihood o meeting theMillennium Development Goal o halving the propor-

tion o people suering rom hunger. A recent World

Bank study conrmed that the incidence o under-

nourishment increased by 63 million people in 2008

due to the jump in global ood prices. Food price

volatility continues with smaller spikes, as witnessed

in August 2010.

ApproACH

Immediate support rom the international commu-

nity was required to reduce the impact o high andvolatile ood prices on the poor and vulnerable and to

increase country resilience to uture supply and

market shocks. The approach set out by IDAs

Global Food Crisis Response Program (GFRP)

allowed client countries to choose a mix o budget

support, social protection, and investments to

support short- and medium-run ood supply

response. These options addressed the immediate

needs o the poor while also embracing policies and

approaches consistent with the need or agricultural

systems to better prepare or similar threats in the

uture.

rEsuLts

Support or short and medium term ood supplyresponse measures are estimated to have reached

5.5 million arm households. Support or social

protection and nutrition programs is estimated to

already have positively impacted almost 2 million.

InNepal, the Social Saety Nets project employed

168,263 workers through ood and cash-or-work

programs, providing ood or approximately

940,000 beneciaries across 28 ood insecure

districts.BetweenNovember2008andJune

2009, 94 percent o beneciaries have reported

an increase in their ood security. InEthiopia, an IDA grant and credit o US$250

million or a Fertilizer Support Project provided the

government with oreign exchange resources to

acilitate the import o ertilizer or the 2009

production seasons. A total o 510,000 tons o

ertilizer was procured with IDA unding or the

2009 production season. An additional US$25

million was disbursed or the Ethiopia Productive

Saety Net program to provide cash and in-kind

transers to ood insecure households. House-

holds with sucient labor undertook public workswhile those without received direct support. An

estimated 550,000 people beneted rom this

program in 2009.

IDA a WorK: Gb Fd cii r


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IDA at WORK: Global Food Crisis Response | 19

InTanzania, an overall IDA credit o US$220

million is providing support to 95 small-scale

irrigation sub-projects and three soil ertility

management demonstrations. It is also nancing

hal o the subsidy or agricultural inputs through

the National Inputs Voucher Scheme. The

vouchers were distributed to 1.5 million armers.

The IDA credit in Tanzania o also provides

support to saety net activities in targeted villages

in 40 ood insecure districts on the mainland and

in Zanzibar. As o early September, 309 commu-nities have been reached with 61,526 direct bene-

ciaries, o whom 49 percent are emale.

pArtNErs

Since the inception o GFRP, the World Bank has

successully mobilized over US$320 million in

external unds to support the ull range o activities

available under the GFRP in both low- and middle-

income countries. A Multi-Donor Trust Fund has

received contributions rom Australia, Spain, the

RepublicofKorea,Canada,andtheInternationalFinance Corporation. Russia and the European

Union allocated unds or specic countries. Eective

partnerships have ostered successul implementa-

tion o GFRP operations and building institutional

capacity. UN agencies including the World Food

Programme, the United Nations Childrens Fund, and

the Food and Agriculture Organization have been

involved as partners in GFRP operations in several

countries, as have civil society organizations.

MovING ForWArD

IDAs engagement under the GFRP is based on

its key strengths in providing integrated solutions to

ood security concerns as well as its strong presence

on the ground in many o the most vulnerable

countries. With the decline in ood prices rom the

highs o 2008, clients are shiting their attention

toward addressing structural agricultural issues. The

World Bank Group prepared an action plan or

support to agriculture or scal years 2010-2012 that

projects a signicantly increased support to agricul-ture and related sectors, rom a baseline average

support in FY2006-08 o US$4.1 billion a year to

between US$6.2 billion and US$8.3 billion annually

over the next three years.



22/40

20 | IDA at WORK: Information and Communication Technology

The International Development Association (IDA)

committed US$101 million in support to the ICT

sector in scal year 2010, bringing its total commit-

ment to US$1 billion since 1997. These investments

have supported the dramatic improvement in the

telecommunications sector in IDA countries. Between

1998 and 2008, the number o telecom subscribers

in IDA countries has risen rom around 1 percent to

30 percent o the population, or more than 300

million subscribers. Mobile phones are boosting

economic productivity, raising incomes o amiliesand small businesses, and providing an important

source o government revenue.

CHALLENGE

ICTs have a positive impact on economic growth.

It is estimated that a 10 percent increase in tele-

phone subscribers per 100 people contributes to 0.6

percent GDP growth around the world, and every ten

percentage point increase in broadband subscribers

per 100 people is associated with 1.38 percentage

points additional GDP growth in developing coun-tries. Access to inormation and communications

technology in IDA countries is boosting economic

productivity, raising incomes o amilies and small

businesses, and providing an important source o

government revenue. Many IDA countries are also

using ICTs to improve the quality and eciency o

public service delivery.

One-third o the population in IDA countries

currently lives beyond the reach o ICT networks - a

major inrastructure gap that needs to be lled.

Although prices have allen over the last ew years,they remain high in many IDA countries, putting ICT

beyond the economic reach o the poor. Advanced

ICT services such as broadband need to be more

aordable and access needs to be widened. At the

same time, the IDA countries ace the challenge o

leveraging the new ICT inrastructure to improve the

delivery o public services and to build on it as a

source o economic growth.

ApproACH

IDA has worked with many countries to reorm

their telecommunications sectors. It has provided

extensive technical assistance to support privatiza-

tion and liberalization and continues to support

capacity-building or governments and regulatory

institutions. In Aghanistan, or example, IDA-

supported sector reorm has resulted in a competi-

tive telecommunications market that has attracted

over US$1.2 billion in private investments, improving

access to ICT services and reducing prices.IDAsupport is evolving to refect the new challenges

aced by the sector. Technical assistance and

investment operations are increasingly ocusing on

closing the rural inrastructure gap, investing in

broadband inrastructure, using ICT to improve the

delivery o public services and supporting the growth

o the inormation technology (IT) and IT-enabled

services industry.

IDA is also increasingly ocusing on supporting

governments to use the improving ICT inrastructure

to deliver public services and to develop the ITindustry as a source o economic growth and

development.

rEsuLts

World Bank support in the ICT sector spans a

wide range o activities and includes many notable

successes.

In Afghanistan, the sector reorms support by

IDA (US$22 million IDA credit) contributed to an

increase in the number o telephone subscribers

rom 57,000 in 2002 to almost 13.4 million by2010, raising total telephone penetration (xed

plus mobile) o 0.2 percent in 2002 to over 27

percent in 2008.

InNicaragua, the privatization o the incumbent

telephone operator in 2001 and the introduction

o ull competition in the sector in 2005 helped

bring about a ten-old increase in mobile subscrip-

IDA a WorK: Ifi d cii thgy


23/40

IDA at WORK: Information and Communication Technology | 21

tions by 2010. Total telephone penetration (xed

plus mobile) increased rom 6 percent in 2001 to

25 percent in 2005, and ultimately to over 60

percent in 2008.

InGhana, the governments proactive policies,

combined with support rom IDA and other

development partners, contributed to a competi-

tive and vibrant industry with a telephone penetra-

tion o over 60 percent. The US$84.7 million

World Bank-unded eGhana project is building on

the IT-enabled services industry, includingsupport to develop a Business Process Outsourc-

ing center. Over 1,000 jobs have been created in

the industry during the last two years.

pArtNErs

The Bank has worked extensively with other

partners in the ICT sector. The preparatory work on

the Eastern Arican Submarine System (EASSy) was

done in partnership with other donors and the

unding was done jointly by the IFC and other

development nance institutions. IDA and the AricanDevelopment Bank are also working together on the

Central Arica Backbone program.

MovING ForWArD

Improving broadband inrastructure is an increas-

ingly important part o many countries economic

strategy. IDA is supporting countries through a

combination o technical assistance and invest-

ments, with a ocus on the core area o the broad-

band value-chain.

The growth o low-cost connectivity provides amajor opportunity or countries to improve their

public service delivery. Countries like Rwanda and

India are already leading the way by using ICTs to

improve the management o rural health centers and

introducing IT to the management o the land title

administration system. The World Bank is supporting

this trend, working across sector departments to

introduce modern technology into the public sector.

IDA will also see more support or governments to

develop their IT and IT-enabled business sectors. In

a recent study by the World Bank, it is estimated that

only about 20 percent o the potential market or

oshoring o IT and IT-enabled services has been

realized. One o the main constraints or developing

countries is the lack o skilled manpower. IDA is

supporting developing countries in growing theirtalent pool through skill assessments, training and

certication programs.



24/40

22 | IDA at WORK: Land Tenure Policy

Land tenure policy reorm is an important part o the

International Development Associations (IDA) overall

eort to address poverty and growth constraints, os-

ter better natural resource management, and

promote gender equality. Global experience shows

that actions to improve land security, access, and

transerability have a number o economic and social

benets.

CHALLENGE

Land tenure sector work in low-income countriesaces many challenges, including weak public land

institutions and oten incomplete policy and legal

rameworks. The breakdown o state ownership and

the rapid privatization o land in the ormer Soviet

bloc in the late 1990s-early 2000s, among other

actors, drove a need or land administration capac-

ity. Similarly, in East Asia and the Pacic, Sub-

Saharan Arica, and Latin America and the Caribbean

a new openness to market-driven development has

created a need or land administration capacity. This

same process is now occurring in South Asia. Inaddition, the continued increase in ood prices and

cultivation o lands or bio-uel uses prompted a

sharp increase in commercial pressure on cropland,

grasslands, orested areas and water resources in

both developed and emerging countries.

ApproACH

The World Bank approach emphasizes policy

dialogue, research, investment and operational

support or the resolution o land tenure issues,

institutional capacity building, long-term engagementwith governments and civil society, and the sharing

o best practices across countries and regions.

IDA assistance on land tenure issues began

roughly 15 years ago. IDA Projects with land

administration as a major theme has been growing

rom zero prior to 1995 to some US$73 million per

year in 2006-2010. The pipeline o dedicated land

administration projects in IDA countries amounts to

some US$60.0 million.

In addition to project-specic support, the World

Bank continues to use its technical expertise to work

with governments to strengthen their land adminis-

tration institutions and assess the policy rameworkor large-scale land acquisition; and uses its analyti-

cal base to provide inormation. The report, Rising

Global Interest in Farmland: Can it Yield Sustainable

and Equitable Benefts? is one recent example o the

commitment to inorming debate and understanding

o agro-investment trends and their impact on

economic growth and poverty reduction.

rEsuLts

Some specic results achieved with IDA support

are listed below: The Honduras Access to Land Pilot Project

(FY01) demonstrated the nancial viability o

community-based land reorm with private

nancing o land acquisition; 990 amilies acquired

2,400 ha; 97 percent o armers able to repay;

and armer incomes doubled in our years.

The Malawi Community Based Rural Land

Development Project (FY04) builds on the new

land policy adopted by the country in 2002 with

IDA support. By May 2010, 15,000 poor amilies

had access to land. Gross margins per hectarehave risen ten-old or hybrid maize rom the

pre-relocation baseline.

IDA a WorK: ld t piy


25/40

IDA at WORK: Land Tenure Policy | 23

The Sri Lanka North East Housing Recon-

struction Program (FY05) acilitated the recon-

struction o 31,200 houses in the North East

region over a our-year period. This has allowed

the return o displaced populations in the North

East and the regularization o land titles to

targeted beneciaries.

TheBosnia and Herzegovina Land Registra-

tion Project (FY07), assisted development and

adoption o new service standards in order to help

improve services, transparency, speed andaccuracy o registrations. Registration took many

months prior to commencement o the project in

2007, but now 80 percent o all transactions are

resolved in ve days or less and mortgages are

registered within a day in 16 o the 47 courts,

including Sarajevo.

A US$5.0-million land component under the

Ethiopia Sustainable Land Management

Project (FY08) has contributed to a successul

home-grown project that has, over a three-year

period, awarded land certicates to more than 25million parcels. In addition, this has also empow-

ered women (e.g., by allowing them to enorce

their land rights in case o inheritance or divorce)

and reduced confict.

pArtNErs

The World Bank has been contributing to recent

global initiatives, such as the High Level Commission

or Legal Empowerment o the Poor, the Global Land

Tools Network, and the International Land Coalition.

It also collaborates closely with a wide range o multi-lateral organizations, and with the private sector

through the International Federation o Surveyors, to

organize regional workshops and capacity building

events.

The World Bank has also been working with the

Food and Agriculture Organization, the International

Fund or Agricultural Development and UN Coner-

ence on Trade and Development, and more recently

with an expanded set o government, private and

other stakeholder partners, to advance responsible

investment through the ormulation o a set o seven

core principles or responsible agro-investment that

respects rights, livelihoods, and resources.

MovING ForWArD

The World Bank will continue to work with

countries on diagnosis, policy dialogue, operational

and nancial support in an eort to establish land

administration systems that help protect the rights o

the poor, induce better national resource manage-

ment, increase investment, and help shit towards a

more diversied economic structure.



26/40

24 | IDA at WORK: Mining

The International Development Association (IDA) has

supported 31 projects o mining sector reorm in 22

countries in the last two decades. The reorms have

contributed to an increase in investment in the mining

sector and related economic indicators such as

exports, scal revenues and gross domestic product

(GDP) in most recipient countries. The critical next

steps are promoting policies and programs to

strengthen governance and the links to the rest o

the economy to ensure that the benets are sus-

tained.

CHALLENGE

Many countries now view the mining sector as a

key engine o economic development. However,

there is the risk that mining operations turn into

socio-economic enclaves as well as cause environ-

mental damage. Attention to social and environmen-

tal considerations, and government commitment to

good governance and transparency is important.

Countries, communities and companies ace tough

questions about opportunities and risks as theydevelop steps to ensure responsible approaches

toward mineral resource development.

ApproACH

In response to this challenge, IDAs approach to

mining sector reorm has evolved substantially over

the last 20 years with each new phase o IDA

support building on the past. In the early years, the

emphasis was on reorming policies, legislation, and

mining sector institutions to increase private invest-

ment and related economic indicators such as exportearnings and tax revenues. By the mid-1990s the

need to improve environmental perormance o the

sector became an essential part o the reorm eort.

Since the turn o the new century, community and

regional development issues have entered into the

dialogue and assistance, including the impacts on

women and other requently disadvantaged groups.

More recently, the role o the mining sector as an

engine o economic development has become an

important aspect o IDA assistance. In some coun-

tries, the proper management and deployment o the

sectors scal revenues are the main actors driving

development. In other countries, the emphasis is onthe mining sector itsel as the catalyst or industrial-

ization.

From 1988 to 2010, there have been 31 IDA-

supported projects in mining sector reorm. Almost

two-thirds o the operations have been in Sub-Saha-

ran Arica, with most o the rest in East Asia and the

Pacic and Latin America. Total unding has been

US$1.07 billion, although the average project unding

o US$33.4 million masks a wide variance, ranging

rom US$1 million (Solomon Islands, 2010) to

US$200 million (Mexico, 1991). Over the last decade,there have been 65 analytical and advisory activities

that include a ocus on mining and other extractive

industries reorm in IDA countries.

rEsuLts

Some specic results achieved with IDA support

are as ollows:

From1994-2000,IDAsupportedminingsector

Technical Assistance (TA) in Tanzania in the

areas o mining legislation and regulations, mining

scal regime, environmental policies and enorce-ment, divestiture o State owned enterprises, and

strengthening institutional capacity. The oreign

IDA a WorK: miig


27/40

IDA at WORK: Mining | 25

direct investment in the mining sector increased

to an average o US$250 million per year in

2001-08 rom less than US$10 million per year in

1990-99. Since 2009, the Bank is supporting the

government to strengthen its capacity to manage

the mineral sector in order to improve the socio-

economic impacts o mining.

IDAhassupportedminingsectorreformin

Madagascar since 1998, with an emphasis on

attracting investment, improving the sectors

environmental perormance, and ensuring that thesectors benets are widespread. The reorms

ostered a large increase in activity, including the

development o large mining operations in ilmenite

and nickel/cobalt. Given the countrys wide-

spread poverty, the government undertook a

strategy centered on strengthening local gover-

nance, decentralizing scal revenues, and

providing technical assistance to community

associations and municipal governments or the

integration o mineral resources management in

their development plans. Mongolia is rich in natural resources, principally

gold, copper, coal, uranium and oil. IDA-support-

ed sector reorm, which began in 1997, resulted

in the adoption o a modern mining law that

encouraged increased mineral exploration and

exploitation. The mining sector has been a key

driver o the countrys GDP growth o 7.8% per

year rom 2000-08. IDA support to Mongolia in

the mining sector is now ocused on using mining

generated scal resources or ostering sustain-

able development in the regions aected byextractive industry activities.

pArtNErs

IDA has worked closely with various stakeholders

in implementing mining sector reorm. The World

Bank-administered Multi-Donor Trust Fund, EITI,

launched in 2003, promotes and supports improved

governance and transparency in resource-rich

developing countries through the ull publication and

verication o company payments and government

revenues rom oil, gas, and mining. The und is

presently supporting 25 IDA countries that are in

various stages o implementation o the EITI process.

MovING ForWArD

Most new IDA technical assistance in the mining

sector is ocused on specic areas o work that will

increase local community benets and improve

governance at national and sub-national levels. Work

is ongoing in a number o areas: (i) enhancing the

roles o oundations and community development

agreements in urthering sustainable development

around mining communities; (ii) increasing the

capacity o local governments to manage increasedrevenues rom mining; and (iii) managing scal

revenues rom the mining sector to enhance their

contribution to sustainable development in regions

aected by mining activities.



28/40

26 | IDA at WORK: Social Development

Social development adopts an approach that

ocuses on the need to put people rst in develop-

ment processes. Overcoming poverty is not just a

matter o getting economic policies right it is also

about promoting social development which empow-

ers people by creating more inclusive, cohesive, and

accountable institutions and societies. An approach

that integrates these principles is critical to address-

ing some o the International Development Associa-

tions (IDA) most challenging issues such as recon-

structing post-confict and ragile states, proactivelyadapting to climate change, promoting good

governance and accountability, and reaching out to

the poorest countries.

CHALLENGE

Sustainable development requires balancing the

needs o present and uture generations. Social

sustainability is a critical aspect o achieving develop-

ment that signicantly improves the lives o the

worlds poorest people. There are several changes

aecting the IDA countries, including increasedvolatility in key markets, climate change and its social

dimensions, and the problems o ragility, and the

implications or poor people. IDA has supported

adapting to the changing environment through

applied research and the development o tools and

methods or understanding the social dimensions o

global change. At the same time, there is a need to

strengthen our understanding o the ways in which

development action can build social resilience in the

ace o the negative impacts o change.

ApproACH

To meet these challenges, IDA is making a

substantial contribution through:

(i) Undertaking better social and political risk analysis,

including poverty and social impact analyses;

(ii) Building a greater understanding o the social

implications o climate change;

(iii) Building links between citizens and their govern-

ment representatives and promoting more

responsive and responsible government struc-

tures;(iv) Enhancing the capacity o communities or

poverty reduction through the Community Driven

Development (CDD) approach;

(v) Designing inclusive activities that increase

societies resilience to violent confict;

(vi) Ensuring that programs have robust social

saeguards and that vulnerable groups are not

only protected but also signicantly benet rom

the project and the development process.

New IDA lending commitments or social develop-ment themes have averaged some US$700 million

annually over the past six years. Between scal years

2005-10, IDAs social development portolio has

ocused on participation and civic engagement

(including CDD), accounting or hal o the new

commitments. Confict prevention and gender were

the next largest areas o new lending.

rEsuLts

One o IDAs main contributions is bringing

attention to the important role that social analysisplays in promoting socially sustainable development.

High quality social analysis is essential to ullling the

World Banks mandate or eective poverty reduc-

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IDA at WORK: Social Development | 27

tion. Another o IDAs goals is to ensure that projects

deliver sustainable outcomes or poor people in

contexts where IDA projects have the potential to

cause disruption to their lives and livelihoods. Project

design, appraisal and implementation processes

support careul identication and addressing o risks,

mitigating adverse impacts and promoting positive

impacts and development opportunities. The Banks

perormance ratings on addressing social develop-

ment issues, including saeguards, during project

preparation and appraisal has improved rom 67percent Moderately Satisactory or higher in an

Assessment in 1998 to 94 percent in an Assessment

in 2009, both by the Banks Quality Assurance

Group. According to an internal World Bank evalua-

tion, projects that addressed at least one social

development dimension (such as community driven

development, confict, culture, gender, indigenous

people, non-governmental organizations (NGOs)/civil

society, participation, resettlement and social unds,

etc.) were rated three to our percent higher on

outcome, sustainability, and institutional develop-ment impact than the overall average o Bank

projects over a 30-year period. Projects that

addressed multiple social development dimensions

had an even higher success rate.

As an example o the results o a social analysis, a

Poverty and Social Impact Analysis (PSIA), carried

out inYemen in 2007 analyzed the implementation

constraints o the governments water sector reorm

strategy. Findings suggested a need or reorms in

water resource management and irrigated agricul-

ture, promoting water productivity particularly orpoorer armers, and correcting the sequence o

reorms. Government, donors and stakeholders

agreed to revise the reorm strategy and implement

recommendations through a multi-donor Water

Sector Support Program.

pArtNErs

IDA is well positioned to use its convening power

and partnerships to advance the social agenda. For

analytical work, it has partnered with local and global

academic and research networks and with multilat-

eral and bilateral organizations on ragility and

confict, gender, and climate change issues. Global

non-governmental organizations are also partners in

social development work

MovING ForWArDThe IDA16 Replenishment will be guided by three

priorities, all o which are relevant or the Banks

orward strategy in Social Development: gender

equity, country ragility, and climate change. The

development o a crisis lending window in IDA is

also signicant. The development o new instruments

or climate nance is likely to continue to increase

demand or expertise in designing socially sustain-

able operations as many o these operations will

require sensitivity to changes in the livelihoods o

orest-dependent peoples to be eective.



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28 | IDA at WORK: Transport

Transport is a crucial enabler or economic growth,

poverty reduction and attaining the Millennium

Development Goals (MDGs). The World Banks

Transport Business Strategy or 2008-2012 stresses

the need or transport to be sae, clean, and aord-

able. With International Development Association

(IDA) unding, over the last ten years, approximately

260,000 kilometers (km) (150,000 km o rural and

110,000 km o non-rural) roads and 10,700 bridges

were constructed, rehabilitated or maintained,

beneting about 75 million people.

CHALLENGE

The relationship between transport and poverty

reduction is neither straightorward nor automatic.

However, development in other sectors is oten

hampered without attention to transport issues.

Improvements in transport have the greatest impact

on poor people when made in concert with activities

in other sectors. An estimated one billion people, or

about 40 percent o the rural population in countries

receiving IDA support, lack direct access to anall-season road. Urban transport systems ace major

challenges due to population growth, vehicle owner-

ship, and the ragility or even absence o public

transport systems. A multi-modal approach is

required to improve passenger and reight mobility.

Enhancing local communities capacity to deliver

sustainable projects and strengthening o public

institutions to plan, arrange and implement appropri-

ate investments have been other ongoing challenges

that IDA is addressing.

ApproACH

Because o its work on multiple complex transport

programs, IDA has developed a strong capacity or

diagnosing bottlenecks and recommending solutions

to encourage institutional innovation. Over the last 10

years, IDAs main transport priorities have been the

construction, rehabilitation and maintenance o roads

and highways, representing 74 percent o commit-

ments or the sector. IDA lending has addressed poli-

cy and institutional development. Between FY2001-

2010, IDA unded US$12.6 billion or transportation,out o which US$9.3 billion was provided or roads

and highways. About US$764 million went into

railways, with 88 percent or the Arica region. In

scal year 1990, IDA also started Development Policy

Lending (DPL) with transport components, with the

objective o supporting transport sector policies and

institutions. Since its inception, IDA approved 119

DPLs with transport components.

rEsuLts

IDA has benetted about 75 million people,through the construction, rehabilitation and mainte-

nance o about 260,000 km (150,000 km o rural and

110,000 km o non-rural) roads and 10,700 bridges

over the last ten years.

InVietnam, the IDA-supported Second Rural

Transport Project (US$103 million) supported the

rehabilitation o some 7,600 km o roads and 26

km o bridges. Usage increased by 70 percent

between 2002 and 2004 with an accompanying

12 percent drop in travel time.

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IDA at WORK: Transport | 29

TheestablishmentofaroadfundinEthiopia in

1997 substantially increased maintenance

unding. The condition o roadwork improved

signicantly. The overall proportion o roads in

poor condition dropped rom 53 percent in 1995

to 40 percent in 2002 and 28 percent in 2008.

For regional roads alone, the share ell rom 60

percent to 37 percent.

TheIDA-supportedruralinfrastructureprojectin

Senegal included substantial road improvements,

helped strengthen decentralization, and nancedmicro-projects covering water, schools, and

livestock, among other things. Beneciary

households in the 110 participating rural commu-

nities reported a 25 percent increase in incomes.

pArtNErs

IDAs global reach and experience, and its ability

to work across disciplines and across dierent

modes o transport, have laid the oundation or

various types o collaboration. For instance, IDA

support has addressed critical multi-modal andmulti-sectoral bottlenecks: the 1999 completion o

theJamunaBridgeinBangladesh,aprojectco-

nanced by IDA, the Asian Development Bank and

thegovernmentofJapan,hasboostedtrafc,

employment and trade by acilitating transport o

passengers, reight, and electricity, literally linking

northwest Bangladesh to the rest o the country. IDA

also has strong synergies with other parts o the

World Bank Group, such as the International Finance

Corporation.

MovING ForWArD

IDA is now looking towards a broader ramework

o support: rom project support or nancing rural

roads to approaches that support broader govern-

ment programs and policy reorm. Railways and

urban transport portolios have risen and are likely to

continue to increase. The experience in rural trans-

port in particular has shown how important it is or

transport sta to engage eectively with other

disciplines in order to achieve the MDGs and ensure

that there are equitable and sustained benets to thepoor. Moreover, the World Bank Group is active in

the reduction o the transport carbon ootprint and

the transport sector strategy encourages green

transport solutions.



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30 | IDA at WORK: Urban Development

Many developing countries are experiencing a

proound population shit, rom rural to urban areas

with the result that their development challenges are

increasingly related to rapid urbanization. The

International Development Association (IDA) has

responded by channeling assistance to priority areas

o urban development, and by dramatically increasing

the number o projects and lending volume or urban

development over the last decade.

CHALLENGE

Over the next 20 years it is projected that over 95

percent o population growth in developing countries

will take place in urban areas, with urban populations

expected to increase to 3.9 billion by 2030 rom 2.6

billion in 2010. In Arica and Asia alone, urban

populations will increase by an average o 62 million

people each year, and by 2030, 56% o the develop-

ing worlds population will be living in urban areas.

This demographic transormation raises important

questions about how to deliver development assis-

tance in the decades ahead.

ApproACH

The World Bank, as described in its new Urban

Strategy document, aims to respond to both sides o

the challenge presented by urbanization: rst, to

assist governments in proactively preparing or new

urban growth; and second, to help achieve better

service delivery or urban poor populations. With an

eye on both these objectives, IDA provides support

on urban development is provided through ve

business lines:(i) City management, nance and governance;

(ii) Urban poverty and slum upgrading;

(iii) Cities and economic growth;

(iv) Urban land, housing and planning; and

(v) Urban environment, climate change, and

disaster management.

rEsuLts

Three short examples illustrate tangible results

measured during last scal year 2010:

InRwanda, the Urban Inrastructure and City

Management project (2005-2009) ocused on

delivering new roads, and social and economic

inrastructure (such as schools, a healthcarecenter, youth center, and a district administrative

building). This project, unded by a US$20-million

IDA grant, increased the number o residents o

Kigaliwithaccesstopavedroadsto488,322by

the beginning o 2010 rom 355,800 in 2005.

Greater accessibility helped local vendors reduce

costs, and pass on the savings to consumers in

the orm o prices o staple oods being reduced

by 18 percent in several neighborhoods surveyed.

One particularly successul element o the project

was its ocus on contracting local rms to carryout the construction works, wherever they had the

capacity. By project completion, 48 percent o

works had been executed by local contractors.

InHonduras, the Regional Development in the

Copn Valley Project (2003-2009) utilized cultural

heritage as a oundation or local economic

development. The project, unded by an IDA credit

o US$13.2 million plus contributions rom the

governmentsofHondurasandJapan,engaged

with several parts o the population: (i) indigenous

peoples and women, through the provision ogrants and capacity development activities; (ii) the

inhabitants o six municipalities proximate to

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IDA at WORK: Urban Development | 31

archeological parks, by helping to oster local

economic growth through seed grants programs

and training; and (iii) with the public administra-

tion, through increasing revenues and improving

institutional capacity or urban management and

heritage preservation, and assisting with rehabili-

tating and developing the archeological sites

themselves. The project helped acilitate: an

increase in expenditures by tourists rom US$117

per person in 2004 to US$697 per person in 2008

and spurred a six-old increase in annual munici-pal tax revenues between 2004 and 2008. The

project was one o the contributing actors in an 8

percent annual growth rate in per capita income

(compared to the national rate o 4 percent).

IDA Summary2

Documents

Transcript of IDA Summary2