Bangladesh - Independent Evaluation Group - World Bank

1. Introduction
Background: 2007 GAC Strategy and Implementation Plan
1.1 The 2007 strategy—a corporate strategy—set forth several objectives relating to the
development of capable and accountable states and committed the Bank to seven principles
of engagement on GAC issues (Box 1). In response to shareholder concerns about the
perceived arbitrariness of senior management decisions to cut off lending to certain
countries, the strategy reiterated the Bank’s use of rules-based criteria for allocating
resources, as well as its aim to stay engaged even in poorly governed countries to ensure that
the “poor do not pay twice.” At the same time, the strategy placed considerable emphasis—
more than earlier strategies—on safeguarding Bank funds from fiduciary risks. Early on, it
was acknowledged that, to achieve its “vision of success,” the strategy required a more
detailed implementation plan.
Box 1.1 The Multiple Objectives and Guiding Principles of the 2007 GAC
Strategy
1. The GAC strategy had several objectives:
• “to support poverty reduction….”
• “…[by] developing capable and accountable states ….[undertaking] sound policies,
improving service delivery, [establishing] rules for markets, combating corruption,”
and
• “…to ensure that its funds are used for their intended purposes.”
2. In addition, the “GAC guiding principles” were as follows:
• Focus on “[a] capable and accountable state to create opportunities for poor people,
provide better services, and improve development outcomes.”
• Country ownership and leadership are key. Country government is the principal
counterpart.
• Remaining engaged so the poor do not pay twice.
• Consistent approach across countries, even though one size does not fit all.
• Engage broad set of stakeholders with focus on transparency, accountability, and
participation.
• Strengthen rather than bypass country systems.
• Harmonization (the Bank will not act in isolation).
Source: World Bank documents.
1.2 The implementation plan (IP) sought to define concrete steps for “what the World
Bank itself will do to support the GAC agenda, and how it will work with governments,
domestic stakeholders, and development partners to support country-level governance
improvements and regional and global initiatives.” The plan’s success was to be measured by
(i) a significant and growing number of countries seriously addressing key governance
impediments to development effectiveness and poverty reduction; (ii) Bank-supported
projects and programs increasingly addressing GAC impediments; and (iii) countries and
global partners valuing and respecting the Bank’s capacity in this area (World Bank 2007a).
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