An Evaluation of the World Bank's Trust Fund Portfolio

More documents

Recommendations

Info

CHAPTER 2THE WORLD BANK’S TRUST FUND PORTFOLIO AND POLICYThe Bank’s trustfundmanagementframework andpolicy haveenhancedcontrols, butfocus more onprocesses thanon strategicissues forguiding thecontinuinguptake of donorfunds.2.22 In June 2010, Bank management provided a report to itsExecutive Directors on the status of the implementation theframework, and by implication the policy. Key points, summarized inbox 2.3, indicate that implementation “is largely on track anddelivering results,” yet much work is still needed to achieve the mainobjectives of “(i) strategic alignment, (ii) integration of operationaland management systems, and (iii) portfolio sustainability.”Box 2.2 Bank-Administered Trust Funds Must Be Aligned with Its Mandate andStrategiesThe six criteria for accepting administration of trust funds are:Consistency with the Bank’s Purposes and Mandate. Activities financedfrom the trust fund are in keeping with the IBRD and IDA Articles ofAgreement.Strategic Relevance. Activities financed from the trust fund are aligned withthe Bank’s strategies.Risk Management and Controls. The risks arising from the trust fund,including those arising from any conflicts of interest or any restrictions on itsuse, are explicitly considered and are judged to be acceptable andmanageable by the Bank.Governance. The Bank has decision-making authority in the use of the fundsthat is adequate to fulfill its roles in administering the specific type of trustfund.Nationality Restrictions on Procurement. The Bank does not accept anycontribution to a trust fund that imposes nationality restrictions onprocurement (as distinct from nationality restrictions on recruitment, whichmay still be accepted).Operational Efficiency and Sustainability. Trust funds are of a sufficientsize to ensure efficient administration and preferably are programmatic indesign. The Bank recovers the costs of performing agreed roles inadministering a trust fund, taking into account benefits associated with suchfunding.Source: World Bank (2007a).2.23 How far have the framework and policy moved the Bank interms of developing a strategic direction for its administration of trustfunds? As the implementation update reveals, the trust fundmanagement framework and policy have so far focused primarily oncontrol processes and have not been used to explore the strategicissues surrounding the Bank’s continuing uptake of responsibility inadministering donor trust funds. There are four such issues:The specific comparative advantages of the trust fundmechanism and when and why trust funds should be usedin advancing the Bank’s mandate.22
CHAPTER 2THE WORLD BANK’S TRUST FUND PORTFOLIO AND POLICYBox 2.3 Reforms Have Substantially Improved Controls But Not Integration with BankProcessesA review of trust funds that Bank management sent to the Board in June 2010 indicatesthat progress has been made in three areas:• Alignment with Bank strategies has been improved by all vice presidentialunits’ (VPUs) preparation of annual trust fund management plans, increaseddiscussion of RETFs in country assistance strategies (CASs) and countryportfolio performance reviews, and establishment of a senior managementreview process for the Bank’s engagement in complex trust-fundedpartnerships.• Risk management and controls for trust-funded activities have been tightenedby instituting requirements that RETFs over $5 million be subject to the samereview and appraisal processes as equivalent Bank lending activities, thatBETFs be subject to the same controls as Bank budget expenditures, andstrengthened quality assurance and risk reporting measures.• Cost efficiency and sustainability gains from revised measures to obtain greaterrecovery of costs incurred by the Bank in administering trust funds andstrengthened information systems to support trust fund managementThe report also notes that the Concessional Finance and Global Partnerships VicePresidency (CFP) has launched a “Bank-wide trust fund consolidation exercise” tomake further progress in all the three areas and specifically outlines further work alongthe following lines:• Strengthening strategic alignment by establishing a coordinating mechanisminvolving relevant VPUs and the CFP to ensure a more structured approach tofund-raising with the Bank, further steps to integrate trust funds along with allexternal resources in the budget, and consolidation of trust fund programsoperating at the country level.• Integration of IBRD/IDA trust funds with Bank operational and managementsystems, primarily based on a pilot to consolidate IBRD/IDA and RETF/BETFprocessing covering at least 20 trust fund programs, and the integration of trustfunds into the Bank’s Results Agenda.• Ensuring cost-efficiency and sustainability of the trust fund portfolio bycontinued review of the portfolio’s cost-recovery arrangements.Source: Report on the implementation of the Trust Fund Management Framework (TFMF), “Managing Trust Funds—An Update and The Way Forward “(World Bank 2010f).How to design trust funds to promote development and aideffectiveness. The policy states in broad terms that trust fundsshould promote development and aid effectiveness, butneither the policy nor the framework offers criteria orguidance on what design and selection features are associatedwith effectiveness. The FIF designation is particularlyinadequate in this respect, because it fails to link the Bank’scircumscribed role as trustee with the principle of promotingdevelopment and aid effectiveness.Segregation of corporate functions. The policy does notaddress the assignment and segregation at the corporate level23
Page 2 and 3: The World Bank GroupWORKING FOR A W
Page 4 and 5: ©2011 The Independent Evaluation G
Page 6 and 7: CONTENTSAllocation of Trust Fund Re
Page 8 and 9: CONTENTSFigure 5.3 All Networks, Es
Page 10 and 11: AcknowledgmentsThis report was prep
Page 12 and 13: SummaryAs development challenges ex
Page 14 and 15: SUMMARYchannels? In addition, the B
Page 16 and 17: SUMMARYinnovative development finan
Page 18 and 19: SUMMARYdonor funds in line with rec
Page 20 and 21: Management ResponseIntroductionMana
Page 22 and 23: MANAGEMENT RESPONSEplay at the leve
Page 24 and 25: MANAGEMENT RESPONSEattention needs
Page 26 and 27: MANAGEMENT ACTION RECORDMajor Monit
Page 28 and 29: Chairperson’s Summary:Informal Me
Page 31 and 32: 1. The Role of Trust Funds in theGl
Page 33 and 34: CHAPTER 1THE ROLE OF TRUST FUNDS IN
Page 39: CHAPTER 1THE ROLE OF TRUST FUNDS IN
Page 42 and 43: CHAPTER 2THE WORLD BANK’S TRUST F
Page 56 and 57: CHAPTER 3THE RELEVANCE AND EFFECTIV
Page 80 and 81: CHAPTER 4MANAGEMENT AND ACCOUNTABIL
Page 96 and 97: CHAPTER 5THE IMPACT OF TRUST FUNDS
Page 102 and 103:
CHAPTER 5THE IMPACT OF TRUST FUNDS
Page 104 and 105:
Page 106 and 107:
Page 109 and 110:
6. Findings and Recommendations6.1
Page 111 and 112:
CHAPTER 6FINDINGS AND RECOMMENDATIO
Page 113 and 114:
CHAPTER 6FINDINGS AND RECOMMENDATIO
Page 115 and 116:
the evaluation, namely operational
Page 117 and 118:
Appendix A: Methodology NoteCalcula
Page 119 and 120:
Appendix B: Trust Fund Use in the E
Page 121 and 122:
APPENDIX B: TRUST FUND USE IN THE E
Page 123 and 124:
APPENDIX B: TRUST FUND USE IN THE E
Page 125 and 126:
APPENDIX C: LIST OF INDIVIDUALS CON
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
APPENDIX D: CORE TRUST FUND PORTFOL
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Appendix E: Trust-Funded FinancialI
Page 139 and 140:
APPENDIX E: FINANCIAL INTERMEDIARY
Page 141 and 142:
APPENDIX E: FINANCIAL INTERMEDIARY
Page 143 and 144:
Appendix F: Reliance on Donor Funds
Page 145 and 146:
APPENDIX F: RELIANCE ON DONOR FUNDS
Page 147 and 148:
Appendix G: World Bank Operational
Page 149 and 150:
Appendix H: Organizational Aspects
Page 151:
Appendix I: Trust Fund Support for
Page 154 and 155:
ENDNOTES3. Over fiscal 2002-10, the
Page 156 and 157:
ENDNOTES31. Cited in a 2008 indepen
Page 158 and 159:
SELECTED BIBLIOGRAPHYKharas, H. 200
Page 160 and 161:
SELECTED BIBLIOGRAPHY____. 2010l.
show all

An Evaluation of the World Bank's Trust Fund Portfolio

Create successful ePaper yourself

Delete template?

Save as template?