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 ...
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
APPENDIX C<br />
RESPONSIVENESS AND EFFECTIVENESS OF THE BANK’S COUNTRY PROGRAMS<br />
conditions was moder<strong>at</strong>ely s<strong>at</strong>isfactory or better. R<strong>at</strong>ings for flexibility improved<br />
over the period, with 73 percent r<strong>at</strong>ed moder<strong>at</strong>ely s<strong>at</strong>isfactory in the second half of<br />
the period, compared to 60 percent in the first half.<br />
23. In Morocco (FY06-08), the Bank responded rapidly to changes in government<br />
commitment, priorities, or capacity, scaling up lending and AAA accordingly. In El<br />
Salvador (FY05-09), the Bank used a CAS Progress Report to recast its program in<br />
response to political gridlock in the first half of the period, scaling back the lending<br />
program and associ<strong>at</strong>ed objectives. <strong>The</strong> program was still able to make an impact<br />
through AAA, project prepar<strong>at</strong>ion, and the use of altern<strong>at</strong>ive funding sources.<br />
24. Other programs responded well to changes in country conditions, including in<br />
Sri Lanka (FY03-07) where the Poverty Reduction Str<strong>at</strong>egy Paper (PRSP) was<br />
discarded when the new government pursued military oper<strong>at</strong>ions and the country<br />
was besieged by the 2004 tsunami. A CAS Progress Report narrowed the scope of<br />
objectives in the existing pillars and added a new pillar focused on tsunami<br />
reconstruction.<br />
25. <strong>The</strong> 29 programs th<strong>at</strong> were r<strong>at</strong>ed moder<strong>at</strong>ely uns<strong>at</strong>isfactory or worse for<br />
flexibility fall into three c<strong>at</strong>egories. First, in about half of uns<strong>at</strong>isfactory programs an<br />
important change in conditions occurred, but the program was not adjusted in any<br />
significant way. This happened in Argentina (FY06-09) where the CAS anticip<strong>at</strong>ed a<br />
Progress Report <strong>at</strong> the program’s midpoint, but none was prepared even in the face<br />
of the global financial crisis. In addition to major str<strong>at</strong>egic adjustments to the lending<br />
program, the Progress Report would have provided an opportunity to rethink the<br />
size and composition of the AAA program. Similarly in Benin (FY04-06), the Bank<br />
did not revise its program in response to deterior<strong>at</strong>ing external events. Moreover,<br />
while risks to the program were well identified in advance, the mitig<strong>at</strong>ion measures<br />
focused on long-term policies such as diversifying the economy and strengthening<br />
incentives. In the event, an infusion of quick-disbursing assistance would have been<br />
necessary to appropri<strong>at</strong>ely cope with multiple shocks.<br />
26. In other programs where flexibility was r<strong>at</strong>ed moder<strong>at</strong>ely uns<strong>at</strong>isfactory or<br />
worse, a response to changing conditions came either with significant delay, or was<br />
too minor to have a meaningful impact. For example in <strong>The</strong> Gambia (FY03-07), it<br />
emerged quickly th<strong>at</strong> the government lacked the necessary commitment to<br />
implement the program. In response, the Bank dropped most of the high case<br />
projects from the pipeline, but replaced them with several others. It also introduced<br />
portfolio monitoring improvements, but these actions were far from timely. And in<br />
Romania (FY06-09), the Bank was slow to recognize and act upon the need to<br />
overhaul its str<strong>at</strong>egy when the government felt little need for a Bank program after<br />
European Union accession, despite a plan <strong>at</strong> the outset to carry out a full review in<br />
th<strong>at</strong> scenario.<br />
130