Results Focus in MDBs: Where Are We? Philibert Afrika, AfDB February 4, 2004

2 Content I. Background and Context II. The Results Agenda in MDBs III. Convergence and Differences IV. Going Forward

I. Background and Context

4 Global Context for Results “Monterrey Consensus” on a new partnership:  Better policies and institutions in developing countries  More and better aid, plus action on trade and debt by developed countries Based on three strands of development dialogue:  country-led development  aid effectiveness  results-based management Requires a global partnership on managing for development results.

5 Managing for Results What do we mean by “results”?  Ultimately the goal is sustained improvement in country development outcomes (e.g. families lifted out of poverty) How do MDBs maximize their results?  By contributing to country development processes. Success requires :  build on the substantive relationships that drive country outcomes  top quality inputs and outputs  derive our inputs and outputs from the desired outcomes, in line with our respective comparative advantages

6 Results: When and Where? MDBs need to focus on results throughout the development cycle:  at the beginning for strategic planning  during implementation for day-to-day management  near the end for evaluation and feedback MDBs need to take action for results at three levels:  in countries, where results are achieved  within the Banks, to be more effective agencies  across agencies, for impact through coordinated action

II. The Results Agenda in MDBs

8 Three Pillars of Results Agenda Pillar I: Strengthen Country Capacity to Manage for Results Pillar II: Results-focus of Bank Strategies and Instruments Pillar III: Global Partnership for Results

9 Pillar I: Country Capacity to Manage for Results MDBs have important comparative advantage for helping countries to build their capacity to manage for development results. Three areas in particular: Knowledge: MDB research  what policies and actions work and what don’t work Capacity: improving their public sector management, evaluation, and accountability frameworks Numbers: improving statistical and monitoring capacities in central, sectoral, and thematic ministries/agencies

10 Pillar I: Country Capacity to Manage for Results Examples of MDB Actions to Help: AfDB : capacity building programs AsDB : widely acclaimed Asia Policy Forum focused on urgent policy issues EBRD : knowledge transfer activities focused on business skills IADB : new Institutional Development Sector Facility World Bank : assists in design of results-based PRSPs, build evaluation capacity, and design statistical master plans

11 Pillar II: MDB Strategies and Instruments The MDBs do not achieve development outcomes directly through their individual actions. For MDBs (and other agencies), success depends on effectively deploying assistance in high-quality ways in countries and in programs. Critical instruments are country strategies, sector strategies, loans and credits, and analytic work.

12 Pillar II: MDB Strategies and Instruments Examples of MDB Actions : AfDB : country strategy papers aligned with PRSPs; independent evaluations of strategies’ results on completion AsDB : results focus of portfolio management - economic, technical, and sector work. EBRD : new Transition Impact Monitoring System IADB : upgraded project quality at entry, supervision, and portfolio management and ex-post evaluations World Bank : piloting “results-based Country Assistance Strategy”

13 Pillar III: Global Partnership on Results MDBs cannot maximize their own impact without strategic alignment with countries’ national strategies (PRSPs where appropriate). This cannot be done without involving others, either. Not just among MDBs, but with all partners. At the level of individual operations, there is a need for harmonization of results reporting in order to reduce the costs of delivering aid, including monitoring and evaluating its impact. Not just among MDBs, but with all partners. Equally, in terms of capacity building programs – statistical and evaluation, and PSM – also need coordination. Not just among MDBs, but with all partners.

III. Convergence and Differences

15 Points of Convergence Common early steps:  focus on quality – leading indicator of results  attention to capacity building – shift to country model  linkage between project and country outcomes Current common focus:  results-based institutional frameworks and assistance strategies  results measurement systems  strengthening independent evaluation

16 Points of Differences Unique features arising from individual MDB mandates, shareholders, and clients need to be taken into account. These include: AfDB - Africa: Capacity constraints, aggravated by the HIV-AIDS pandemic AsDB - Asia: regional environmental and other issues in Asia; need for multi- country approach by the AsDB EBRD - Europe: private sector focus on transition impact and capacity building IADB - Latin America/ Caribbean : particular interest of IADB clients in utilizing a RBM for public expenditure management World Bank : centrality of the PRSP to the country assistance strategies for low-income countries, in partnership with IMF and MDB partners

17 Oversimplifying our assumptions, such as:  internal change is sufficient and rapid  everything is measurable and attributable Overcomplicating our efforts:  measuring and monitoring too much at too high a cost  attempting to attribute collective results to individual Banks Overemphasizing ourselves at the expense of our clients, and the need for:  strengthening statistical and monitoring systems  harmonizing reporting requirements among donors Risks We Must Manage

IV. Going Forward

19 Marrakech Roundtable: Expected Results Improvement in the effectiveness of aid, through: Enhanced relevance and evaluability of agency country strategies Improved coordination/support for strengthening country capacity to manage for results Strengthened commitment to harmonization of results reporting