The Matrix System at Work - Independent Evaluation Group - World ...

CHAPTER 5
INSTITUTIONAL ISSUES AND ORGANIZATIONAL STRUCTURE
resources--from an annual average of 19 percent in FY02-04 to 26 percent in FY08-10. 77
From FY02-04 to FY08-10 the share of budget resources from BETFs has increased from
10 percent to 16 percent in the Regions, 32 to 44 percent in network anchors, and 23 to
26 percent in DEC and WBI combined. Trust funds have become critical to the Bank’s
core business and are, in effect, a way of maintaining the appearance of a flat budget
ceiling while allowing sector staff and managers to cope with the constraints in the
Bank’s budgeting process under the matrix system to fill funding gaps.
5.50 Network anchors have become more reliant on trust funds than the Regions.
In FY08-10 the Regions taken together received 49 percent of trust funds and 49 percent
of overall Bank budget funding. Network VPUs received a greater share of trust funds
(36 percent) than their 9 percent share of overall Bank budget (Figure 5.2). BETFs
financed an average of 16 percent of regional budgets and 44 percent of network anchor
budgets, with more than half of the SDN anchor’s expenditures coming from trust
funds as it manages over 70 percent of all network anchor trust funds. The five largest
trust funds managed by the network anchors—which alone amount to almost 50
percent of network trust funds—are the Water and Sanitation Program, Energy Sector
Management Assistance Program, Carbon Fund, and Global Facility for Disaster
Reduction and Recovery in SDN, and the Consultative Group to Assist the Poorest in
FPD. Access to trust funds gives the network VPUs a degree of autonomy to finance
sector and corporate priorities such as gender and governance, and global priorities
such as climate change whose externalities may extend beyond individual client
countries and which may not otherwise be integrated into country programs. However,
trust funds also create contribute to the decline noted earlier in cross support provided
by the network VPUs to the Regions. 78
Figure 5.2. Network Anchors and DEC/WBI Receive a Much Higher Proportion of Trust Funds
(BETF) than Bank Budget
FY08‐10 Budget Actuals ($2,375 mil annual average in 2010 constant US$)
2%
8%
Regions
Network Anchors
13%
DEC/WBI
49%
Corporate
8%
Finance
Administration
6%
Other Operations
Other
5%
9%
FY08‐10 BETFs ($446 mil annual average in 2010 constant US$)
1%
0%
3%
1%
1%
9%
49%
36%
Source: World Bank databases.
Note: Other included Central Accounts and Other Unit expenditures. Other Operations includes OPCS and QLP.
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