An Evaluation of the World Bank's Trust Fund Portfolio

EndnotesChapter 11. There is an extensive general literature on the changing aid architecture, including “The End of ODA: Death and Rebirth of aGlobal Public Policy” (Severino and Ray 2009), “The New Reality of Aid” (Kharas 2007), and many others listed in thebibliography.2. Twenty-first century strategic directions and lending instrument and risk management reforms; see, for example, World Bank2007c and World Bank 2010i.3 Appendix A explains the method used to make this calculation, which draws on data from the 2010 Organization forEconomic Co-operation and Development (OECD) Development Assistance Committee (DAC) report on Multilateral Aid(OECD 2010).4. While an effort was made to calculate the share of total trust funds administered by other agencies, available data were notsufficiently rigorous to make individual agency calculations.5. See bibliography for the large literature on the implications of the growing use of trust funds.6. The evaluation examines the bulk of the World Bank’s trust fund portfolio, excluding major trust funds or categories of trustfunds, notably GEF, HIPC, and other debt reduction funds because they have been extensively evaluated elsewhere, and themultiple consultant trust funds because they are being phased out.7. See a note on the evaluation methodology in appendix A.8. Appendix B briefly describes the trust fund presence in each of these country cases.9. See appendix C for list of individuals consulted.10. The eight donors interviewed are Canada, the European Commission, France, Germany, the Netherlands, Norway, theUnited Kingdom, and the United States, which together account for 62 percent of total trust fund contributions over the periodfiscal 2002–10 (including World Bank trust fund contributions from net income).11. The European Commission is included here as a donor because of its trust fund contributions to the World Bank.12. For example, the GAVI Fund purchases and delivers vaccines to countries with resources from a financing mechanism thatissues bonds against longer-term donor pledges, thus converting those pledges into immediately available cash and then usingdonor resources to repay the bonds over time.13. David Mitchell, in the New Statesman, 7/July 29/10, 2010 (Macintyre 2010).14. See evaluation of the European Commission’s aid delivery through development banks and the European Investment Bank(Aide à la Décision Économique 2008).15. This point is discussed further in chapter 3. As noted in IEG’s assessment of the World Bank’s involvement in GRPPs, 40 ofthe 70 trust-funded global or regional partnership programs in which the Bank participates include recipient countries in theirformal governance structures (IEG, forthcoming b).16. A 2008 World Bank study found that the extent of recipient-country concern about distortions in country programs causedby earmarked funds depends largely on two things: how important such funding was as a share of a country’s overall sectorbudget and the general capacity of the country to manage donors (World Bank 2008d). These points are further addressed inchapter 3.17. The general literature on aid fragmentation notes that the proliferation of new aid mechanisms increases transaction costs forrecipient governments. As discussed in chapter 3, however, the actual burden on recipients in practice is more a matter ofwhether or not trust fund resources are integrated into country programs and procedures on the ground are harmonized.18 . Recommendations of the Accra Agenda for Action (OECD 2008a) and the Accra Roundtable on Aid Architecture (OECD2008b).Chapter 21. Figures used here and throughout this report are based on data provided by Bank management as of August, 2010. Seeappendix D for core trust fund portfolio statistics.2. In addition to the RETF and BETF grants, in fiscal 2010 another 90 trust fund grants were for Carbon Fund transactions(contract payments for projects that produce verified greenhouse gas emission reductions) and 107 grants were for transfers fordebt service, to the IFC and external organizations, and for holding accounts.123