An Independent Review of World Bank Support to ... - DAG Ethiopia

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The Role of Donors in Ethiopia2.21 The World Bank is the largest provider of development aid to Ethiopia. Otherimportant donors in recent years have been the European Commission, the United States,the African Development Bank, and Japan. Together with the World Bank, these donorshave accounted for slightly over 50 percent of all development assistance to Ethiopia.2.22 Recent estimates (2003 PER) underline that sustained economic growth atprevious levels combined with a doubling of real aid inflows will allow only a marginalimprovement in delivery of public (social) services, and that the ambition of reaching theMDGs will leave a financing gap in the order of $2.0 billion per year to be filled byfurther domestic and external resource mobilization. This underlines the key issue ofenhancing the capacity of the public sector to manage expanding programs for servicedelivery, potentially supported by increasing aid flows.8
3. Bank Assistance Strategy and Capacity Building Program3.1 Before the regime change in 1991, the Bank restricted its activities to a core IDAlending program. In 1992, the Bank coordinated a consortium of donors to support thetransitional Government’s effort to reconstruct war-torn infrastructure and support newpolicy initiatives through structural adjustment. The country strategy was revised in 1994after a new government had been democratically elected.Capacity Building in the Bank’s Country Assistance Strategies3.2 The emphasis on capacity building in the Bank’s country assistance strategy haschanged significantly over the period under review. The development in overallobjectives and themes of the Bank’s strategies is illustrated in Table 3.1, along with theprogram lending envelopes.Table 3.1: CAS Objectives/Themes and Lending Envelopes1995 CAS(1996-1998)1997 CAS(1998-2000)2000 Interim SupportStrategy(2001-2002)2003 CAS(2003-2005)CAS ObjectivesEconomic growth Sources of growth Pro-poor growthRecovery &ReconstructionStructural adjustmentAgricultural & NaturalResourcesRecovery &ReconstructionAgriculture & FoodSecurityReducing vulnerabilityInfrastructure Infrastructure InfrastructureHuman ResourcesDevelopment & SocialServicesPoverty & HumanDevelopmentHIV/AIDSPolicy & Capacity Institutions, Capacity &Service DeliveryLending envelope, US$ mill p.a., base case and (range)Human DevelopmentCapacity building &Improving governance250-300 400 (up to 550) Additional 350 500 (275-595)3.3 The 1995 CAS focused mainly on the capacity to implement Bank financedoperations, which at the time were often addressed by having project implementationunits (PIU). Constraints in procurement, disbursement, and auditing were often cited asissues that needed to be addressed. Apart from this cross-sector work, the CASmentioned specific capacity needs analysis only in connection with the social sectors. Aprogram of social sector studies was planned, which addressed the issue of “institutionalassessments and capacity building including assessment of the role of the private sectorand NGOs.” A more thorough analysis of public sector capacity constraints is notincluded in the 1995 CAS and it did not otherwise specify capacity building objectives.9
Page 1 and 2: An Independent Review of World Bank
Page 3 and 4: Annex D: Capacity Building Objectiv
Page 5 and 6: PEMPERPFPPIUPPDPRSPPRSCPSCAPPSMPSRR
Page 9 and 10: 1. IntroductionObjectives1.1 This s
Page 11 and 12: 2. Country ContextPolitical Develop
Page 13 and 14: complete state transformation (incl
Page 15: provide policy direction, coordinat
Page 19 and 20: 3.7 The program of lending operatio
Page 21 and 22: 4. Assessment of Bank Support to Ca
Page 23 and 24: organizational aspects of capacity.
Page 25 and 26: esource strong and flexible financi
Page 27 and 28: identification of capacity constrai
Page 29 and 30: government procurement systems unde
Page 31 and 32: Table 4.4: Service Improvements in
Page 33 and 34: Delivery of Support4.43 Value for M
Page 35 and 36: YearTable 4.5: Commitments for Capa
Page 37 and 38: instruments themselves. However, TA
Page 39 and 40: and its reluctance to accept TA inp
Page 41 and 42: 6. Conclusions6.1 The Bank’s cont
Page 43 and 44: late. TA staff can perform several
Page 45 and 46: Annex A: List of IntervieweesGovern
Page 47 and 48: Annex B: Documents and Projects Rev
Page 49 and 50: ProjectRSDP SupportProjectEconomicR
Page 51 and 52: ProjectEDUCATIONSeventhEducationPro
Page 53 and 54: ProjectESDP IICapacityBuildingCateg
Page 55 and 56: ProjectCapacityBuildingCategoryInst
Page 57 and 58: ProjectCapacityBuildingCategoryObje
Page 59 and 60: ProjectCapacity BuildingCategoryObj
Page 61 and 62: Project Details Timing Institutions
Page 63: Annex E: OED Ratings on Completed P

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