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

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APPENDIX J<br />

WORKING ACROSS SECTORS AND THEMES: CODING OF BANK LENDING OPERATIONS, FY1995-2010<br />

Figure J.1. Average Share of Investment Loans Alloc<strong>at</strong>ed to Non-affili<strong>at</strong>ed Sectors and <strong>The</strong>mes<br />

70%<br />

60%<br />

Avg. alloc<strong>at</strong>ion of investment<br />

lending to unaffili<strong>at</strong>ed themes<br />

(3-year centered average)<br />

50%<br />

40%<br />

30%<br />

Avg. alloc<strong>at</strong>ion of oper<strong>at</strong>ions<br />

to unaffili<strong>at</strong>ed sectors<br />

(3-year centered average)<br />

20%<br />

FY95<br />

FY96<br />

FY97<br />

FY98<br />

FY99<br />

FY00<br />

FY01<br />

FY02<br />

FY03<br />

FY04<br />

FY05<br />

FY06<br />

FY07<br />

FY08<br />

FY09<br />

FY10<br />

Source: Business Warehouse<br />

96. <strong>The</strong> modest initial increase in the average share of a project devoted to themes<br />

not affili<strong>at</strong>ed with the Sector Board to which the project is mapped coincided with<br />

the introduction of the m<strong>at</strong>rix system, and may have reflected initial enthusiasm for<br />

the new system. But this boost to cross-them<strong>at</strong>ic work was short-lived, and as time<br />

passed, less and less <strong>at</strong>tention was devoted to addressing these non-affili<strong>at</strong>ed<br />

corpor<strong>at</strong>e priorities. <strong>The</strong> sharp drop in the assignment of non-affili<strong>at</strong>ed sectors to<br />

investment projects coincided with, but cannot be <strong>at</strong>tributed to, the rapid scaling up<br />

of lending volume in response to the global financial crisis and followed shortly<br />

after the cre<strong>at</strong>ion of the Sustainable Development Network (SDN), merging the two<br />

largest networks <strong>at</strong> the time in 2006. <strong>The</strong> scaling up of lending could plausibly be<br />

associ<strong>at</strong>ed with the reduction in cross-sectoral content, as task teams did not have<br />

the extra time needed to introduce content into projects th<strong>at</strong> fell outside their area of<br />

expertise. <strong>The</strong> cre<strong>at</strong>ion of SDN, on the other hand, was expected to increase crosssector<br />

work, as it removed an organiz<strong>at</strong>ional barrier. But this was not the case in<br />

practice.<br />

97. Development policy loans are designed as more cross-sectoral and crossthem<strong>at</strong>ic<br />

than investment loans, and increasingly so. <strong>The</strong> average proportion of<br />

development policy oper<strong>at</strong>ions devoted to unaffili<strong>at</strong>ed sectors and themes rose<br />

steadily over the period, exceeding 70 percent for both for the three year average<br />

over FY08-10. But even for DPLs, the policy focus inherent in the oper<strong>at</strong>ion makes it<br />

easier to indic<strong>at</strong>e linkages to multiple sectors without actual collabor<strong>at</strong>ion across<br />

211

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