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Environmental Sustainability: An Evaluation of World Bank Group Support. July 2008. Environment matters for development. Environmental problems are enormous and increasing Climate change Air and water pollution Soil erosion and desertification Water scarcity Loss of biodiversity

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Presentation Transcript
environment matters for development
Environment matters for development
  • Environmental problems are enormous and increasing
    • Climate change
    • Air and water pollution
    • Soil erosion and desertification
    • Water scarcity
    • Loss of biodiversity
  • Developing countries

are severely affected:

    • Growth
    • Poverty
  • Both public

and private

action are needed

wbg timeline increased attention since 1990





WB project focus:

"do no harm"

IFC: Deepening

attention to project-

level impacts from 1991

WBG: 2001 Environmental Strategy

World Development Report

(for Rio summit) (1992)

WB: Increasingly proactive role from 1992

* 4-fold agenda: Safeguards, Stewardship,

Mainstreaming, Global sustainability

MIGA: Enhanced project-

level focus from 1998

WBG timeline: Increased attention since 1990

IFC: Equator Principles

WB: 2003 World Development Report

key messages
Key messages
  • The World Bank Group has made progress since 1990 as an advocate for the environment
  • But treatment of environmental issues in many WBG country programs remains weak due to major external and internal constraints
  • The WBG needs to increase its engagement and effectiveness in environmental issues through
      • Greater attention in Bank Group and country strategies
      • More effective cross-sectoral approaches
      • Better measurement of activities and results
      • Closer collaboration within the WBG and with partners
this evaluation looks broadly at wbg engagement fy90 07
This evaluation looks broadly at WBG engagement FY90-07
  • Broad coverage: World Bank, IFC, and MIGA
  • Evaluation Objectives
      • Assessing WBG effectiveness
      • Identifying principal external and internal constraints
      • Suggesting improvements going forward
  • Perspectives: “Do no harm” and “ Do good”
  • Methodology
      • Literature review
      • Portfolio review (variation across WBG due to data availability)
      • 9 country case studies
the 9 case study countries come from all regions and a mix of mics and lics
The 9 case study countries come from all regions and a mix of MICs and LICs
  • Together these countries account for 56% of population,46% of GDP, and over 40% of Bank environmental lending in developing and transition countries.
world bank
World Bank
  • Strategies
    • 2001 WBG Strategy
    • growing but still inadequate attention in country strategies
    • even less in country-led PRSPs
  • Lending and grants
    • exact amount unknown – at most 5-10% Bank total
    • project performance better over time, but M&E still weak
    • weaker performance in Africa
  • Nonlending
    • as important as lending
    • country environmental assessments: helpful where undertaken
    • research influential: WDRs ’92, ’03; Greening Industry
world bank cont
World Bank (cont)
  • Mainstreaming
    • some improvement but still far to go (poverty, health-environment links, vulnerability)
  • Partnerships
    • needs strengthening within WBG and externally
    • some good examples (GEF, Pov-Env. Ptnp. )
  • Global public goods
    • less emphasis during evaluation period, though now growing
    • some good examples (Montreal protocol, carbon finance)

Sustainability in IFC corporate strategies since 2001. Until recently focus has been on “do no harm”. Move to more “do good”.

  • Environmental and social effects of investment projects
    • 67% success rate in meeting IFC requirements and performance standards
    • weak performance in Africa and in certain sectors
    • limited attention to broader context
  • Environmental work quality
    • appraisal generally good, supervision of financial intermediaries weak

3. “Doing good” initiatives

    • M&E system generated insufficient data or still too early to assess

- Environment & Social Sustainability advisory services

- Equator Principles


MIGA’s focus has been primarily on “do no harm”

Sustainability concept just incorporated in core business

  • Environmental and social effects
    • Category A projects: better performance and increased attention to social issues
    • Category B projects: less attention, worse performance
  • Environmental work quality
    • Strengthened environmental and social issues in underwriting

New policy and performance standards (2007): Go beyond safeguards to promote sustainability in guaranteed projects

many constraints need to be confronted
Many constraints need to be confronted
  • Clients (public and private)
  • Competing demands (e.g. growth,

energy needs, governance, conflict)

  • Insufficient client commitment
  • Inadequate institutional capacity

and resources

  • World Bank Group
  • Competing priorities
  • Inadequate staff skills and knowledge networks
  • Difficulties of coordination across sectors, across WBG, and externally
  • Difficulties of taking long-term view and of assessing country-level impacts beyond individual projects
the evaluation has four broad recommendations
The evaluation has four broad recommendations
  • Elevate environmental sustainability as WBG priority -- not just more of the same, but a “transformational” change
  • Move to more integrated, cross-sectoral and area-based approaches and strengthen staffing
  • Greatly improve ability to measure, monitor, and evaluate activities and their results
  • Continue to strengthen partnerships
what would success look like
What would success look like?
  • A widely-shared understanding of the critical role of environmental sustainability to development
  • Clear alignment behind key strategic objectives
  • Strong and effective WBG capacity
  • Effective internal and external collaboration
  • An emphasis on continual learning (from both success and failure)…
thank you evaluation available at www worldbank org ieg environmentalsustainability

Thank youEvaluation available at: www.worldbank.org/ieg/environmentalsustainability

Evaluation authors:

John Redwood (IEG-WB)

Jouni Eerikainen (IEG-IFC)

Ethel Tarazona (IEG-MIGA)