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

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OVERVIEW<br />

cycle (3-4 years). SSPs typically discuss both<br />

long-term str<strong>at</strong>egic issues and medium-term<br />

priorities, while country clients vary widely and<br />

expect customiz<strong>at</strong>ion of sector priorities to the<br />

country’s context and government priorities.<br />

More recent SSPs are better <strong>at</strong><br />

internalizing country and regional<br />

experience than the first gener<strong>at</strong>ion of<br />

SSPs. <strong>The</strong> review of SSPs reveals th<strong>at</strong> recent<br />

SSPs have often been supported by regional<br />

sector str<strong>at</strong>egies developed as inputs to the<br />

SSPs, which are better <strong>at</strong> reflecting country<br />

and regional experiences than were the first<br />

gener<strong>at</strong>ion of SSPs. SSPs typically describe the<br />

st<strong>at</strong>e-of-the-art in th<strong>at</strong> sector and serve four<br />

functions: providing a conceptual framework<br />

for the Bank’s work, stocktaking of<br />

experiences, gener<strong>at</strong>ing shared understanding<br />

on sector priorities among anchor and<br />

regional staff, and communic<strong>at</strong>ing with<br />

external partners. Implement<strong>at</strong>ion <strong>at</strong> the<br />

country level is contingent upon the extent to<br />

which sector priorities are integr<strong>at</strong>ed in CASs<br />

since SSPs are not accompanied by resources<br />

for implement<strong>at</strong>ion.<br />

<strong>The</strong> country-based model makes it<br />

difficult to integr<strong>at</strong>e sector and corpor<strong>at</strong>e<br />

str<strong>at</strong>egies with country str<strong>at</strong>egies. <strong>The</strong><br />

Regions contribute to prepar<strong>at</strong>ion of SSPs, but<br />

for the most part, CASs and country programs<br />

do not draw on them. SSPs lack ownership<br />

among country directors who exercise<br />

decisions over oper<strong>at</strong>ional priorities and budget<br />

alloc<strong>at</strong>ions. Country directors r<strong>at</strong>ion country<br />

budgets among different sectors based on their<br />

understanding of client needs during the CAS<br />

period, which may or may not coincide with<br />

the longer-term str<strong>at</strong>egic priorities articul<strong>at</strong>ed<br />

in particular SSPs. And country directors have<br />

little incentive to finance cross-country work<br />

or str<strong>at</strong>egic economic and sector work (ESW)<br />

with a longer time horizon.<br />

<strong>The</strong> principal means through which sector<br />

priorities are reflected in the CAS is through<br />

the direct involvement of sector staff members<br />

who contribute to CAS development. Less<br />

than a third of staff and managers report th<strong>at</strong><br />

SSPs have had significant impacts on CASs<br />

and country programs.<br />

Global and regional programs are not well<br />

integr<strong>at</strong>ed into CASs and country<br />

programs. In the 14 focus countries<br />

reviewed, global public goods were integr<strong>at</strong>ed<br />

in CASs to a very limited extent with a<br />

substantial presence in only four. IEG’s 2008<br />

Annual Review of Development Effectiveness<br />

refers to the country-based model as a<br />

double-edged sword because historically<br />

global public goods are incorpor<strong>at</strong>ed in<br />

country programs only when domestic and<br />

global benefits are aligned. <strong>The</strong> country-based<br />

model does not incentivize staff to internalize<br />

corpor<strong>at</strong>e goals. Wh<strong>at</strong> is needed is a balance<br />

between wh<strong>at</strong> the client wants and the global<br />

perspective the Bank brings. When global and<br />

country interests diverge, additional incentives<br />

may be needed to increase client interest in<br />

global public goods.<br />

About one-third of staff and managers<br />

reported integr<strong>at</strong>ion of global programs and<br />

an even smaller proportion of staff reported<br />

integr<strong>at</strong>ion of regional issues in CASs and<br />

country programs to a substantial extent. <strong>The</strong><br />

uptake of global and regional programs has<br />

been c<strong>at</strong>alyzed by availability of trust funds or,<br />

in Africa, by earmarked IDA funds for<br />

regional programs. In some areas, such as<br />

clim<strong>at</strong>e change, there is a growing demand for<br />

Bank support. In others, such as governance<br />

and gender, there is a need for appropri<strong>at</strong>e<br />

tools and support to adapt global agendas to<br />

country circumstances.<br />

<strong>The</strong> Promise of a Global Knowledge Bank<br />

In 1996, the concept of a Knowledge Bank<br />

was put forward both as the means to<br />

enhance the quality of <strong>World</strong> Bank<br />

lending and to provide a new stream of<br />

knowledge services to developing<br />

countries. <strong>The</strong> concept implied a shift<br />

xx

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