An Evaluation of the World Bank's Trust Fund Portfolio

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CHAPTER 3THE RELEVANCE AND EFFECTIVENESS OF TRUST FUND SUPPORT FOR DEVELOPMENTBox 3.4 The Global Fund Meets Disease Targets But Not Health System Capacity NeedsA five-year evaluation of the Global Fund has shown that it has made substantialcontributions, on the whole, in providing increased funding for the scaling up ofinterventions in the three disease areas of AIDS, tuberculosis, and malaria. Thissupport has contributed to increases in the availability of services, better coverageacross populations in countries, and reduction in the burden of disease.Yet the evaluation (and a forthcoming IEG Global Fund review) also points toweaknesses in the sustainability of intervention programs at the country level, inpart because of reduced incentives for country programs to engage in nationalplanning for future resource allocations and the Global Fund’s inadequate attentionto capacity building, while at the same time making heavy demands on existingsector capacities.Experience has varied by country, though sustainability of intervention programs isat issue in all countries where the Global Fund is a significant source of finance, andintegration of activities is a problem in many. For example, independent evaluationindicates that in Cambodia the Global Fund has had some success enabled by goodgovernment leadership and a well-functioning government-donor coordinatingmechanism, but has still faced problems with fragmented project units, inadequateintegration into the national planning process, and difficulties because of weaknessesin national fiduciary systems. In Burkina Faso, the Global Fund needs to coordinatebetter with other sources of aid to allow for a balanced allocation of resources amongthe country’s priorities of coping with the three Global Fund diseases, as well aspressing issues of maternal and child health.Sources: Macro International Inc. (2009); IEG (forthcoming a).In post-disasteror post-conflictsituations,multidonor trustfunds have beenused to poolbilateral grantfunding and asan aid platformfor donorsinside andoutside thepool.3.22 Trust-funded investment financing has also contributed whenit has used financing modalities well adapted to a country’sconditions, and not when it uses a modality prescribed by theprogram rather than by individual country circumstances.Contrasting uses of the EFA/FTI trust fund in Benin, Ethiopia, andRwanda illustrate this point (box 3.5).3.23 Responding to post‐disaster or post‐conflict circumstances. Inthese special country circumstances, trust funds have enabled pooledgrant financing from some of the active donors and served as aidcoordinatedplatforms for donors inside and outside the multidonorfunds. For recipients, this funding has often been indispensable andhas reduced aid transaction costs for both recipients and donors.Trust fund financing has also been the sole or predominant source offinancing for the Bank’s engagement, at least in the initial phases ofpost-disaster and post-conflict assistance. Most programs haveentailed strong management, though there have been high-profileexceptions. 732
CHAPTER 3THE RELEVANCE AND EFFECTIVENESS OF TRUST FUND SUPPORT FOR DEVELOPMENTBox 3.5 Trust Funds Need Flexibility in Matching Aid Modalities to Country ConditionsThe EFA/FTI was established to provide support quickly and consistently with countries’own education sector strategies and programs. Sector budget support is therefore itspreferred funding modality. But this mode of support has not always proved appropriatein all cases, and EFA/FTI has in some cases adjusted to country circumstances.• In Rwanda, the government views EFA/FTI as “a model aid program” because itsfunding supports the government’s own education program and is deliveredthrough sector budget support using Rwanda’s country systems. While the fund ismultidonor at the global level, the government needs to interact with only thepartner managing the fund at the country level.• In Ethiopia, the major government education program receives project supportfrom a pool of financing including EFA/FTI, IDA, and other donor funds. Thoughquestions were raised in an independent evaluation of the EFA/FTI programabout the choice of project rather than sector budget support, this was the onlyviable approach under political circumstances that made donors unwilling toprovide direct support to the government, and it contributed substantially.• In Benin, EFA/FTI was provided as pooled sector budget support along with IDAfinancing, but the weak government consensus around an education strategy didnot warrant this type of support, and the program encountered significantimplementation problems.Sources: Rwanda, Ethiopia, and Benin case studies.3.24 Still, trust funds, like other sources of aid in these circumstances,have often run into challenges of very weak capacity on the ground,difficulties in interacting with other aid agencies, and tensions betweenshort-term and longer-term needs. In Aceh, for example, MDTF supportfor disaster reconstruction was successful in quickly and efficiently fillinggaps in the much larger amount of funding from the government,bilateral agencies, and NGOs. But because of differing government anddonor perspectives on how the trust fund should operate, it haddifficulty moving beyond initial relief and reconstruction to longer-termincome generation and capacity building projects—a change made in therestructuring of the trust fund in 2010 (Disch, Karlsen, and Vigeland2009).3.25 In post-conflict situations, trust funds have been particularlyimportant as a source of grant support in the absence of a nationalgovernment able to borrow from the World Bank or otherdevelopment banks. The achievement of objectives, however, hasbeen heavily constrained by weak environments and exogenousfactors. As a result, while individual activities have often achievedwhat was intended, there has been less success with programoutcomes overall. The two post-conflict case studies for thisevaluation, Timor-Leste and the West Bank and Gaza, and severalother externally evaluated cases illustrate both the considerablepositive contributions of trust funds under these specialcircumstances and the obstacles to overall success (see box 3.6).33
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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
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CONTENTSFigure 5.3 All Networks, Es
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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 109 and 110: 6. Findings and Recommendations6.1
Page 111 and 112: 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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