The Matrix System at Work - Independent Evaluation Group - World ...
The Matrix System at Work - Independent Evaluation Group - World ...
The Matrix System at Work - Independent Evaluation Group - World ...
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CHAPTER 4<br />
DELIVERING QUALITY SERVICES<br />
the m<strong>at</strong>rix system fosters cross-sector collabor<strong>at</strong>ion and teamwork to achieve<br />
results.<br />
4.3 <strong>The</strong> evalu<strong>at</strong>ion has looked <strong>at</strong> both formal and informal incentives in recent<br />
years to assess the effectiveness of the m<strong>at</strong>rix system. Improving quality in portfolio<br />
performance and encouraging gre<strong>at</strong>er cross-sector work were objectives of the 1997<br />
reforms. This chapter briefly discusses the role of formal and informal incentives for<br />
quality and client orient<strong>at</strong>ion and their links to institutional arrangements. It then<br />
presents an overview of recent trends in portfolio outcomes to assess if there have<br />
been any changes in quality and in the p<strong>at</strong>terns of sector and them<strong>at</strong>ic distribution<br />
of the portfolio. <strong>The</strong> chapter then focuses on incentives, drawing on d<strong>at</strong>a from<br />
survey results and manager interviews as well as analysis of budgetary incentives.<br />
<strong>The</strong> chapter then presents a brief review of quality assurance mechanisms and<br />
accountabilities for results. Based on these findings, the evalu<strong>at</strong>ion draws<br />
conclusions regarding the efficiency and effectiveness of the m<strong>at</strong>rix system in<br />
achieving the rel<strong>at</strong>ed intermedi<strong>at</strong>e outcome—“Incentives and accountability ensure<br />
teamwork and high quality country dialogue and client services.”<br />
PORTFOLIO TRENDS IN QUALITY<br />
4.4 Outcomes of Bank-financed oper<strong>at</strong>ions as measured by year of exit from<br />
the portfolio improved significantly over the past two decades, rising from less<br />
than two-thirds s<strong>at</strong>isfactory in the early 1990s to a peak of nearly 80 percent<br />
s<strong>at</strong>isfactory in the mid-2000s, as shown in Error! Reference source not found. Figure<br />
4.1a. Reporting outcomes by year of exit is a lagging indic<strong>at</strong>or of quality <strong>at</strong> entry,<br />
reflecting performance of projects prepared an average of seven years earlier and<br />
affected in part by Bank supervision. Of the lending oper<strong>at</strong>ions exiting the portfolio<br />
in FY01-10, 76 percent of oper<strong>at</strong>ions were r<strong>at</strong>ed moder<strong>at</strong>ely s<strong>at</strong>isfactory or better,<br />
compared to 68 percent for those exiting in FY1991-2000, a difference th<strong>at</strong> is<br />
st<strong>at</strong>istically significant.<br />
4.5 In more recent years, quality has become a concern. After the long upward<br />
trend in outcomes, the trend has turned decidedly neg<strong>at</strong>ive. <strong>The</strong> share of Banksupported<br />
oper<strong>at</strong>ions exiting the portfolio in FY08-10 whose outcomes were<br />
moder<strong>at</strong>ely s<strong>at</strong>isfactory or better was 74 percent, compared to 79 percent in FY05-07,<br />
a decline th<strong>at</strong> is st<strong>at</strong>istically significant <strong>at</strong> 95 percent confidence. 51 This decline is<br />
more evident for investment projects, which are typically prepared six to seven<br />
years earlier, than for development policy oper<strong>at</strong>ions. Indeed, partial results for<br />
FY10 52 were the worst in an individual year since FY99 (although year-to-year<br />
vari<strong>at</strong>ions should be interpreted with caution). This suggests th<strong>at</strong> the Bank’s quality<br />
assurance system deserves a closer look.<br />
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