An Evaluation of the World Bank's Trust Fund Portfolio

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CHAPTER 3THE RELEVANCE AND EFFECTIVENESS OF TRUST FUND SUPPORT FOR DEVELOPMENTMDGs, the provision of development-related global public goods, orspecial country circumstances. Most trust-funded programs are alignedwith the applicable Bank sector or corporate strategy. The AfricaCatalytic Growth Fund, for instance, was set up to operationalize part ofthe African Action Plan, and the Consultative Group to Assist the Poor(CGAP) is consistent with the Financial Sector Strategy. Eight of the 36programs sampled, however, diverged from the relevant sectorstrategies. 5 The Polio Buy-Down program, which exclusively supportsvaccine provision, is not fully consistent with the Bank’s more holisticapproach to health and social services. The Critical EcosystemPartnership Fund, in its first phase, diverged from the Bank’sEnvironment Strategy insofar as it focused on environmental gainswithout tracking and reporting the livelihoods of its grant recipients, buthas widened its focus in its second phase.Trust funds arenot wellintegrated intocountryassistancestrategies.3.12 The country assistance strategy (CAS) is an important instrumentfor ensuring that Bank Group support is relevant for and aligned withcountry priorities and programs. It lays out the country’s maindevelopment challenges and the Bank Group’s role in relation to otherdonors, and it is a key vehicle for agreeing with the borrower authoritieson priorities. Trust-funded activities are not systematically incorporatedinto CASs, so this instrument is not being employed effectively to shapethe use of or engagement with trust funds at the country level, nor indiscussion with the clients. Indonesia was the only case study countrywhere the CAS gave proper treatment to trust funds (box 3.1).3.13 In contrast, the CASs for four other country case studies—Bangladesh, Benin, Ethiopia, and Rwanda—assert that the Bank will usetrust funds to help achieve the CAS’s strategic objectives, but do not statehow each trust fund will be deployed in support of the objectives. Thetrust funds that cofinance (or fully finance) IDA operations are usuallymentioned, but the “programmatic” network-managed funds and thelarge global funds are mentioned only in passing, despite theirsubstantial size.Box 3.1 The Indonesia Country Partnership Strategy Lists Trust Funds Along withAll Other Resources to be Deployed in Achieving the Strategy’s GoalsThe major trust funds are fully integrated into the country strategy. Thepartnership strategy presents objectives, activities, and intended results for eachof the engagement areas, and lists all available resources (lending, nonlendingassistance, and trust funds) that will be deployed to achieve those goals. Thesame approach is followed in periodic Engagement Strategy Notes produced bycountry unit and sector unit staff, which summarize recent progress towardengagement area goals; the status of lending, analytic and advisory activities(AAA), and trust-funded programs; and issues for management attention.Source: Indonesia country case study.28
CHAPTER 3THE RELEVANCE AND EFFECTIVENESS OF TRUST FUND SUPPORT FOR DEVELOPMENT3.14 Management recently presented similar findings on trust fundintegration in CASs: that CASs tended to include descriptions of themore significant trust-funded interventions, and select outcomes wereintegrated into discussions of past and proposed programs.Discussions did not always represent the breadth of trust fundportfolios, particularly for smaller-size trust fund operations andBank-executed trust funds (BETFs), even when they represented aconsiderable number of initiatives and when taken together couldhave a significant impact on the country program.3.15 The Bank’s East Asia and Pacific Region has taken the lead inworking with donors and recipients to integrate trust funds into CASsand country programs, though it finds that “much work still liesahead.” The Region has also included trust funds in country portfolioreviews in order to examine issues of alignment with the CAS,portfolio indicators (such as riskiness and disbursements), andperformance issues. In addition, country management units havestarted to track results in CASs from all funding sources, includingtrust funds. Similar progress in the integration of trust funds intoCASs across all Regions is important in ensuring trust fund alignmentwith countries’ development efforts and for reasons of transparencyand accountability (discussed in chapter 4).THE DISTINCTIVE CONTRIBUTIONS OF TRUST FUND SUPPORT3.16 Trust funds have mainly financed three types of developmentactivity: country-level investments, technical assistance andknowledge activities, and support for piloting innovation. In each ofthese areas trust funds have served to fill gaps in the aid system byproviding coordinated financing and grant resources for specificcountries and targeted issues, and in some cases fostering theinnovative financing and governance arrangements that areimportant for the promotion of particular (especially global) issues.Financing Investments3.17 Most trust fund resources are used to finance investments atthe country level. Specifically, they are used in three main ways—toscale up operations, to respond to post-conflict or post-disastercircumstances, and to promote the provision of global public goods.This trust fund financing has in most cases reinforced country-levelefforts and has sometimes made a pivotal contribution.3.18 Scaling up operations. Trust fund support for scaling upoperations has generally been provided as cofinancing (or otherblended funding) of a Bank operation. Some large Bank-supportedoperations in Bangladesh and Ethiopia, for example, benefit frommultiple separate trust funds along with aid from other sources.Most trust fundresources areused to financeinvestments atthe countrylevel.29
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The World Bank GroupWORKING FOR A W
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©2011 The Independent Evaluation G
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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
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6. Findings and Recommendations6.1
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CHAPTER 6FINDINGS AND RECOMMENDATIO
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CHAPTER 6FINDINGS AND RECOMMENDATIO
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the evaluation, namely operational
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Appendix A: Methodology NoteCalcula
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Appendix B: Trust Fund Use in the E
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APPENDIX B: TRUST FUND USE IN THE E
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APPENDIX B: TRUST FUND USE IN THE E
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APPENDIX C: LIST OF INDIVIDUALS CON
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APPENDIX D: CORE TRUST FUND PORTFOL
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Appendix E: Trust-Funded FinancialI
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APPENDIX E: FINANCIAL INTERMEDIARY
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APPENDIX E: FINANCIAL INTERMEDIARY
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Appendix F: Reliance on Donor Funds
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APPENDIX F: RELIANCE ON DONOR FUNDS
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Appendix G: World Bank Operational
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Appendix H: Organizational Aspects
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Appendix I: Trust Fund Support for
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ENDNOTES3. Over fiscal 2002-10, the
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ENDNOTES31. Cited in a 2008 indepen
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SELECTED BIBLIOGRAPHYKharas, H. 200
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SELECTED BIBLIOGRAPHY____. 2010l.
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An Evaluation of the World Bank's Trust Fund Portfolio

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