9:10 - 10:45 Session Five

Partnering with the World Bank GroupChair:

Peer Stein, Director, Access to Finance Advisory, IFC

Presenter: Traci Phillips, Advisor, CFP, WB

Panel: Elisabeth Gruber, Senior Advisor, Federal Ministry of Finance, AustriaDiane Barclay, Director, World Bank and Results Section, AusAID, AustraliaAnn Miles, Director Microfinance, Mastercard Foundation, USA

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Partnering with the World Bank Group

Traci PhillipsAdvisor

Concessional Finance and Global PartnershipsWorld Bank

Session 5May 22, 2013

The World Bank Group

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Overarching reasons: (1) benefit from/leverage the experiences of others (2) coordination and/or pooling of resources for a stronger

response

Examples: Dialogue, Advocacy, Knowledge Sharing Operational Coordination Delivery of Global Public Goods Collective Action (e.g. crisis response, food security)

Why the WBG Partners with Others

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Ongoing institutional relationships, such as IMF, other MDBs, UN system

Operational partnerships at the country level Partnership Programs (PP) – global or regional in

scope, thematic in nature Types of partners include:

Governments (donors and client countries) Other international organizations Newer actors such as CSOs, foundations, and the private

sector

Types of Partnerships and Partners

Key Characteristics of Partnership Programs:

• Partnership Bodies facilitate shared decision-making on:

• strategic priorities • program objectives • allocation criteria• results frameworks

• Multi-Country Scope to address:

• global public goods • other global/regional issues• collective action • perceived gaps in aid

• Dedicated financing

• IBRD/IDA Trust Funds • FIFs • Bank grants

Partnership Programs Structure

Decision-Making or Advisory

Program Management and Administration of Funds

Implementation of Development Activities

Partnership Body

Partnership ProgramManagement Unit/Secretariat

Country Level Activities

Global/Regional Level Activities

Funding Mechanism

Illustrative Partnership Program Structure

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Large, broadly multilateral programs supported by FIFs Most appropriate in responding to major global priorities (GEF, CIFs, GAFSP, etc.) Bank—by acting as Trustee and Secretariat—can play a convening function. Engage multiple agencies in implementation.

Trust Funded programs implemented in the World Bank Group Donors may be highly engaged (CGAP, EITI-TAF) or lightly engaged (e.g., donor

council that meets once a year, focused mainly on strategy). Potential cost of additional engagement needs to be justified by a robust

partnering objective. Innovative public-private partnerships Mastercard Foundation/IFC Financial Services for Africa. Innovative Finance mechanisms, such as the Advanced Market Commitments

(AMC).

Partnership Programs Structure : Options

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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

focus on poor people in all countries

Recognize the Diversity of Clients country, private sector, global

Focus on Development Solutions based on goals, client needs, comparative advantage,

evidence

Work as One World Bank Group leveraging institutional knowledge and financing

Exercise Dynamic Selectivity link to goals, comparative advantage, impact

Building Blocks

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Past efforts to strengthen selectivity have not translated to clear process to consider at the institutional level Potential for duplication among PPs or substitution with other instruments

Striking the right balance among potential tradeoffs Country v. Global approach (i.e. bottom-up “demand” v. top-down “supply”) Resource tradeoffs: new opportunities v. core lending functions Larger more inclusive decision-making v. leaner more efficient structure Accountability: to traditional WBG structure (Senior Management and the

Board) v. partnership body

Customized approaches need to capture lessons learned Develop feedback loops

Lifecycle Challenges

Selectivity for Partnership Programs

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Goals Ensure the Bank builds on its own strengths when

participating in Partnership Programs Maintain flexibility to respond to emerging needs Balance institutional priorities against international

demands PP that is relevant to country-level development impact Effectiveness and efficiency of governance structures

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Strategic Selectivity Principles Need for collective action or close coordination involving the Bank Participation consistent with strategic priorities, comparative advantage Avoid aid fragmentation, proliferation of financing mechanisms Participation should ultimately benefit client countries Partners should share a commitment to common objectives

Design Principles Overarching: level of accountability must be aligned with level of control Roles and responsibilities are clearly articulated and agreed among partners Participation on PP bodies should be properly framed (Terms of Reference) Funding mechanism should be well suited to the PP needs

Selectivity for Partnership Programs

IFC Example of a Broad Based Partnership Approach

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Framework Element

Approach Advantages

Funds mobilization Donors, DFI/IFIs for investment, advisory work Leverage public funds alongside private

Thought leadership SME Finance Forum as a platform Share knowledge on priority issues

Awareness among global leaders

G20 SME Finance Challenge and the Global Partnership for Financial Inclusion

Informs and drives context & change

Convening Power Synergies with DFIs, public/private sector for broader impact

Wider mobilization; increased efficiency

Delivery Mechanism: Global SME Finance Initiative• Results & Impact: 200,000 SMEs, 50,000 Women SMEs, $8 billion SME loans, 1 million jobs.• Leverage: $64mn for concessional tranche brings over $500mn IFI funding.

$56mn for advisory brings greater client & other partner funding.• Scalability: Contributions from DFID and EIB; alongside private sector clients: banks and MFIs. • Efficiency: Economies of scale for project implementation, technical expertise.• Effectiveness: Combination of Investment and Advisory Services for holistic solution.

The G20 Global Financial Inclusion Agenda

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What makes partnering with the WBG an attractive proposition?

How can we work together to create Partnership Programs that are strategically aligned with Bank priorities but mutually beneficial for all partners?

Under what circumstances should the WBG and its partners create new programs rather than make use of existing mechanisms?

How can we more effectively include non-traditional partners such as CSOs, foundations and the private sector?

Questions for Discussion

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Annexes

Example of Partnership Centered on Learning – The MasterCard Foundation

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Project Evaluations

Program Level Evaluation

Cross-Cutting Thematic

EvaluationsBenchmarking

Learning Publish Evaluation Results

Annual Conference and Industry Events Technical Research

Knowledge Guides and Practice Notes

Key Learning QuestionsCritical success factors for scaling financial access for the poor? Reasons for failure?

What kinds of interventions create most access?What can we learn about the impact on clients?

Technical Research to Inform ApproachProj

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