9: :45 Session Five Partnering with the World Bank Group Chair: Peer Stein, Director, Access to Finance Advisory, IFC Presenter: Traci Phillips, Advisor, CFP, WB Panel: Elisabeth Gruber, Senior Advisor, Federal Ministry of Finance, Austria Diane Barclay, Director, World Bank and Results Section, AusAID, Australia Ann Miles, Director Microfinance, Mastercard Foundation, USA

3 Partnering with the World Bank Group Traci Phillips Advisor Concessional Finance and Global Partnerships World Bank Session 5 May 22, 2013 The World Bank Group

Overarching reasons: (1)benefit from/leverage the experiences of others (2)coordination and/or pooling of resources for a stronger response Examples:  Dialogue, Advocacy, Knowledge Sharing  Operational Coordination  Delivery of Global Public Goods  Collective Action (e.g. crisis response, food security) 4 Why the WBG Partners with Others

 Ongoing institutional relationships, such as IMF, other MDBs, UN system  Operational partnerships at the country level  Partnership Programs (PP) – global or regional in scope, thematic in nature  Types of partners include:  Governments (donors and client countries)  Other international organizations  Newer actors such as CSOs, foundations, and the private sector 5 Types of Partnerships and Partners

Key Characteristics of Partnership Programs: Partnership Bodies facilitate shared decision-making on: strategic priorities program objectives allocation criteria results frameworks Multi-Country Scope to address: global public goods other global/regional issues collective action perceived gaps in aid Dedicated financing IBRD/IDA Trust Funds FIFs Bank grants Key Characteristics of Partnership Programs: Partnership Bodies facilitate shared decision-making on: strategic priorities program objectives allocation criteria results frameworks Multi-Country Scope to address: global public goods other global/regional issues collective action perceived gaps in aid Dedicated financing IBRD/IDA Trust Funds FIFs Bank grants Partnership Programs Structure Decision- Making or Advisory Program Management and Administration of Funds Implementation of Development Activities Partnership Body Partnership Program Management Unit/Secretariat Country Level Activities Global/Regional Level Activities Funding Mechanism Illustrative Partnership Program Structure

7 Large, broadly multilateral programs supported by FIFs  Most appropriate in responding to major global priorities (GEF, CIFs, GAFSP, etc.)  Bank—by acting as Trustee and Secretariat—can play a convening function.  Engage multiple agencies in implementation. Trust Funded programs implemented in the World Bank Group  Donors may be highly engaged (CGAP, EITI-TAF) or lightly engaged (e.g., donor council that meets once a year, focused mainly on strategy).  Potential cost of additional engagement needs to be justified by a robust partnering objective. Innovative public-private partnerships  Mastercard Foundation/IFC Financial Services for Africa.  Innovative Finance mechanisms, such as the Advanced Market Commitments (AMC). Partnership Programs Structure : Options

8 WBG Strategic Framework WBG Goals End Extreme Poverty the percentage of people living with less than US$1.25 / day to fall to 3 percent by 2030 End Extreme Poverty the percentage of people living with less than US$1.25 / day to fall to 3 percent by 2030 Promote Shared Prosperity faster income growth of bottom 40% population in every country Promote Shared Prosperity faster income growth of bottom 40% population in every country Achieving the goals must be sustainable in the long term – environmentally, socially and fiscally Serve Poor and Vulnerable People Everywhere focus on poor people in all countries Serve Poor and Vulnerable People Everywhere focus on poor people in all countries Recognize the Diversity of Clients country, private sector, global Recognize the Diversity of Clients country, private sector, global Focus on Development Solutions based on goals, client needs, comparative advantage, evidence Focus on Development Solutions based on goals, client needs, comparative advantage, evidence Work as One World Bank Group leveraging institutional knowledge and financing Exercise Dynamic Selectivity link to goals, comparative advantage, impact Exercise Dynamic Selectivity link to goals, comparative advantage, impact Building Blocks

 Past efforts to strengthen selectivity have not translated to clear process to consider at the institutional level  Potential for duplication among PPs or substitution with other instruments  Striking the right balance among potential tradeoffs  Country v. Global approach (i.e. bottom-up “demand” v. top-down “supply”)  Resource tradeoffs: new opportunities v. core lending functions  Larger more inclusive decision-making v. leaner more efficient structure  Accountability: to traditional WBG structure (Senior Management and the Board) v. partnership body  Customized approaches  need to capture lessons learned  Develop feedback loops 9 Lifecycle Challenges

Selectivity for Partnership Programs 10  Goals  Ensure the Bank builds on its own strengths when participating in Partnership Programs  Maintain flexibility to respond to emerging needs  Balance institutional priorities against international demands  PP that is relevant to country-level development impact  Effectiveness and efficiency of governance structures

 Strategic Selectivity Principles  Need for collective action or close coordination involving the Bank  Participation consistent with strategic priorities, comparative advantage  Avoid aid fragmentation, proliferation of financing mechanisms  Participation should ultimately benefit client countries  Partners should share a commitment to common objectives  Design Principles  Overarching: level of accountability must be aligned with level of control  Roles and responsibilities are clearly articulated and agreed among partners  Participation on PP bodies should be properly framed (Terms of Reference)  Funding mechanism should be well suited to the PP needs 11 Selectivity for Partnership Programs

IFC Example of a Broad Based Partnership Approach 12 Framework Element ApproachAdvantages Funds mobilizationDonors, DFI/IFIs for investment, advisory workLeverage public funds alongside private Thought leadershipSME Finance Forum as a platformShare knowledge on priority issues Awareness among global leaders G20 SME Finance Challenge and the Global Partnership for Financial Inclusion Informs and drives context & change Convening PowerSynergies with DFIs, public/private sector for broader impact Wider mobilization; increased efficiency Delivery Mechanism: Global SME Finance Initiative Results & Impact: 200,000 SMEs, 50,000 Women SMEs, $8 billion SME loans, 1 million jobs. Leverage: $64mn for concessional tranche brings over $500mn IFI funding. $56mn for advisory brings greater client & other partner funding. Scalability: Contributions from DFID and EIB; alongside private sector clients: banks and MFIs. Efficiency: Economies of scale for project implementation, technical expertise. Effectiveness: Combination of Investment and Advisory Services for holistic solution. The G20 Global Financial Inclusion Agenda

 What makes partnering with the WBG an attractive proposition?  How can we work together to create Partnership Programs that are strategically aligned with Bank priorities but mutually beneficial for all partners?  Under what circumstances should the WBG and its partners create new programs rather than make use of existing mechanisms?  How can we more effectively include non-traditional partners such as CSOs, foundations and the private sector? 13 Questions for Discussion

Annexes 14

Example of Partnership Centered on Learning – The MasterCard Foundation 15 Project Evaluations Program Level Evaluation Cross-Cutting Thematic Evaluations Benchmarking Learning Publish Evaluation Results Annual Conference and Industry Events Technical Research Knowledge Guides and Practice Notes Key Learning Questions Critical success factors for scaling financial access for the poor? Reasons for failure? What kinds of interventions create most access? What can we learn about the impact on clients? Technical Research to Inform Approach Project Level Monitoring