An Evaluation of the World Bank's Trust Fund Portfolio

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CHAPTER 3THE RELEVANCE AND EFFECTIVENESS OF TRUST FUND SUPPORT FOR DEVELOPMENTmanaged investments (Kelly 2004). More recently, trust funds haveprovided support for Carbon Fund Transactions that have helped openup a new mode of environmental financing, but as a vehicle for catalyticfinance and technology transfer the record is mixed, as discussed in box3.7.3.28 In the view of some Bank managers, the Carbon Funds areincurring a large reputational risk for the Bank. Created to test and pilotan approach, in the course of implementation they have enabled “athousand flowers to bloom and become an operational mess, supportingthings that we shouldn’t be doing,” as put by one sector manager. TheGlobal Environmental Facility (GEF) and the CIF (Climate InvestmentsFund)—both FIFs—also provide substantial funding for environmentrelatedinvestments at the country level. Neither is reviewed in thisevaluation because the GEF has its own evaluation unit and the CIFs aretoo new to have produced much evaluative material.Providing Technical AssistanceTrust fundsfinanced aplethora oftechnicalassistanceactivities thatranged in sizefrom $50,000 to$350,000 infiscal 2010.Trust funds addresources andflexibility to theprovision oftechnicalassistance andencourageinnovations.3.29 Although trust-fund financing of analytic and advisory services(AAA) represents a small share of trust fund dollars, it involves aplethora of individual trust-funded grants (ranging in size from $50,000to $350,000 in fiscal 2010). Of the trust-funded activities reviewed, mostappear to have delivered their intended outputs, though often withdelays. This was the case with the majority of trust-funded analyticalwork and technical assistance reviewed as part of the country studiesand the 17 random sample programs that focused primarily on technicalassistance.3.30 But this evaluation could not systematically assess the usefulnessor impact of the economic and sector work and technical assistancefinanced by trust funds compared with those activities financed by theBank’s budget. The reasons are three. First, reporting on this work—whether trust funded or Bank financed—typically focuses on inputs andoutputs with very little attention to outcomes. Second, trust funds thatsupport analytic and advisory services are earmarked for work onspecific topics and themes selected by the donors, and the selectionprocess cannot be evaluated since it is unknown what topics areneglected in favor of those supported. Finally, while it is always difficultto attribute the direct influence of analytical and advisory work oncountry or Bank strategies and operations, it is especially difficult fortrust fund financing when, as is often the case, it is part of a largerprogram of support (IEG 2008a).3.31 Some trust funds supplement Bank-financed AAA products byenhancing their quality and scope, while others fund products thatmight not otherwise have been done. In Indonesia, which is reluctant toborrow IBRD funds for technical assistance, as much as 23 percent of the36
CHAPTER 3THE RELEVANCE AND EFFECTIVENESS OF TRUST FUND SUPPORT FOR DEVELOPMENTtrust fund portfolio (exclusive of the large disaster-support) is directed tosuch work, 8 while in Bangladesh and Benin, technical assistance accountsfor a smaller share of total trust fund support, but is nonethelesssignificant in specific areas. For example, in Bangladesh two sizable trustfunds have financed technical assistance programs in support ofgovernance and policy reforms—the Strengthening Public ExpenditureManagement Project and the Joint Technical Assistance Program, nowin its second phase. According to a Bank staff member, the former “fitsbeautifully” with the CAS because it is a low-profile way to supportpolicy reform in one of the four CAS pillars. Similarly, the latter isviewed as flexible and highly innovative, producing valuableinformation for the Bank-financed social protection and rural work.3.32 Trust-funded technical assistance support has also been central tothe Bank’s engagement as a leading donor in post-conflict situations,even though the Bank provides only a small share of overall aid. Box 3.8provides a positive example of this role of trust-fund support in the WestBank and Gaza.3.33 On the whole, trust fund financing for analytical and technicaladvisory work has been well regarded and found useful by governmentofficials when it has directly addressed government policy processes andprograms (though government officials are not always aware of thesource of the funding for specific activities).3.34 Several government officials interviewed emphasized the valueof flexible, “just-in-time” policy and technical advice, but many werecritical of financing for studies whose topics they saw as donor-drivenand focused on issues outside their country strategies and programs. InRwanda, the government has started to decline small funds for analyticalwork that falls outside the CAS, because this work is seen as disruptiveand a tax on officials’ time.3.35 In interviews, some Bank sector and country managers statedthat—while virtually all of the trust-funded technical assistance andeconomic and sector work deals with issues relevant to the country—the work is not always of the highest priority, would not have beendone using the Bank’s budget, and does not always receivemanagement attention and quality assurance. 9 Indeed, one countrymanager in the Africa Region stated that:Recipients andBank staff saythat trustfundedAAA isrelevant but notalways of thehighest priority.[I]t is staff in those sectors that are crowded out of theCAS and/or who do not accept that theirs is not asector expected to feature active Bank engagement inthe country who then go looking for trust-fundfunding (since this is not made available by the CMU[country management unit]). It is this sort ofentrepreneurial activity that leaves counterparts37
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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
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SummaryAs development challenges ex
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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
Page 113 and 114: CHAPTER 6FINDINGS AND RECOMMENDATIO
Page 115 and 116: 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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