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Environmental Sustainability: An Evaluation of World Bank Group
Support
July 2008
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Environment matters for development
► Environmental problems are enormous and increasing• Climate change• Air and water pollution• Soil erosion and desertification• Water scarcity• Loss of biodiversity
► Developing countries are severely affected:
• Growth • Poverty
► Both public and private action are needed
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WBG timeline: Increased attention since 1990
1970 1980 1990 2000
WB project focus:"do no harm"
World Development Report (for Rio summit) (1992)
MIGA: Enhanced project-level focus from 1998
WB: Increasingly proactive role from 1992* 4-fold agenda: Safeguards, Stewardship, Mainstreaming, Global sustainability
IFC: Deepening attention to project-level impacts from 1991
WBG: 2001 Environmental Strategy
IFC: Equator Principles WB: 2003 World Development Report
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Key messages► The World Bank Group has made progress
since 1990 as an advocate for the environment
► But treatment of environmental issues in many WBG country programs remains weak due to major external and internal constraints
► The WBG needs to increase its engagement and effectiveness in environmental issues through
– Greater attention in Bank Group and country strategies– More effective cross-sectoral approaches– Better measurement of activities and results– Closer collaboration within the WBG and with partners
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This evaluation looks broadly at WBG engagement FY90-07
► Broad coverage: World Bank, IFC, and MIGA
► Evaluation Objectives– Assessing WBG effectiveness– Identifying principal external and internal
constraints– Suggesting improvements going forward
► Perspectives: “Do no harm” and “ Do good” ► Methodology
– Literature review– Portfolio review (variation across WBG due to
data availability)– 9 country case studies
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The 9 case study countries come from all regions and a mix of
MICs and LICs► Together these countries account for 56% of population, 46% of GDP, and
over 40% of Bank environmental lending in developing and transition countries.
East Asia ChinaLatin America BrazilMiddle East/N. Afr
Egypt
Sub-Saharan Africa
Ghana, Madagascar, Senegal, Uganda
South Asia IndiaEurope/Central Asia
Russia
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Findings
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World Bank
1. Strategies • 2001 WBG Strategy• growing but still inadequate attention in country strategies • even less in country-led PRSPs
2. Lending and grants• exact amount unknown – at most 5-10% Bank total • project performance better over time, but M&E still weak• weaker performance in Africa
3. Nonlending• as important as lending• country environmental assessments: helpful where
undertaken • research influential: WDRs ’92, ’03; Greening Industry
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World Bank (cont)
4. Mainstreaming• some improvement but still far to go (poverty, health-
environment links, vulnerability)5. Partnerships
• needs strengthening within WBG and externally• some good examples (GEF, Pov-Env. Ptnp. )
6. Global public goods • less emphasis during evaluation period, though now
growing• some good examples (Montreal protocol, carbon finance)
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IFC
1. Environmental and social effects of investment projects • 67% success rate in meeting IFC requirements and performance
standards• weak performance in Africa and in certain sectors • limited attention to broader context
2. Environmental work quality • appraisal generally good, supervision of financial intermediaries
weak
3. “Doing good” initiatives• M&E system generated insufficient data or still too early to assess
- Environment & Social Sustainability advisory services - Equator Principles
Sustainability in IFC corporate strategies since 2001. Until recently focus has been on “do no
harm”. Move to more “do good”.
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MIGA MIGA’s focus has been primarily on “do no harm”
Sustainability concept just incorporated in core business1. Environmental and social effects
• Category A projects: better performance and increased attention to social issues
• Category B projects: less attention, worse performance 2. Environmental work quality
• Strengthened environmental and social issues in underwriting
New policy and performance standards (2007): Go beyond safeguards to promote sustainability in guaranteed projects
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Looking ahead
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Many constraints need to be confronted
► Clients (public and private)• Competing demands (e.g. growth, energy needs, governance, conflict)• Insufficient client commitment• Inadequate institutional capacity
and resources
► World Bank Group• Competing priorities• Inadequate staff skills and knowledge networks • Difficulties of coordination across sectors, across WBG,
and externally• Difficulties of taking long-term view and of assessing
country-level impacts beyond individual projects
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The evaluation has four broad recommendations
1. Elevate environmental sustainability as WBG priority -- not just more of the same, but a “transformational” change
2. Move to more integrated, cross-sectoral and area-based approaches and strengthen staffing
3. Greatly improve ability to measure, monitor, and evaluate activities and their results
4. Continue to strengthen partnerships
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What would success look like?
► A widely-shared understanding of the critical role of environmental sustainability to development
► Clear alignment behind key strategic objectives
► Strong and effective WBG capacity ► Effective internal and external
collaboration► An emphasis on continual learning (from
both success and failure)…
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…and a more sustainable world for all
Thank you
Evaluation available at: www.worldbank.org/ieg/environmentalsust
ainabilityEvaluation authors:
John Redwood (IEG-WB)Jouni Eerikainen (IEG-IFC)Ethel Tarazona (IEG-MIGA)