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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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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

1970

1980

1990

2000

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)
slide10
IFC

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

slide11
MIGA

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)