9:45 – 11:15 Session One Strategic Directions for Development Impact Chair: Nena Stoiljkovic, Vice President, Business Advisory Services, IFC Presenter: Joachim von Amsberg, Vice President, Concessional Finance and Global Partnerships (CFP), WB Panel: Mark Bowman, Director General, DFID, United Kingdom Per Knutsson, Head, Multilateral Coordination Unit, SIDA, Sweden Jennifer Adams, Director, Office of Engagement, USAID, USA

3 Strategic Directions for Development Impact Joachim von Amsberg Vice President Concessional Finance and Global Partnerships (CFP) World Bank Session 1 May 21, 2013 The World Bank Group

WBG Strategic Framework 3 3 WBG and Development Partners 4 4 Implications for Joint WBG – Partners Work Why We Work Together 1 1 Changing Global Economic Landscape

Why We Work Together Timor Leste Translating Growth into Lasting and Inclusive Development 50% reduction in school dropout rates and 2,780 classrooms rehabilitated 61 years life expectancy raised from 56 years old between 2000 and 2008 Sudan Fighting High Maternal Mortality 28% increase in births attended by skilled health staff from 2010 to 2012 Moldova Improving Power Transmission Afghanistan A Global Partnership supporting reconstruction Zambia Increasing Access to Malaria Interventions 24% increase in the number of households owning a least one insecticide-treated net 53% drop in malaria parasitemia Vietnam Access to All-Weather Roads 210,000 people lifted out of poverty. 7,600 kilometers of roads and 26,000 meters of bridges rehabilitated 21 million people reached through the National Solidarity Program, of which 35% have been women 22% reduction in electrical grid losses between 2002 and 2007

Changing Global Economic Landscape 6 Ending poverty is finally within reach  High growth in MICs and LICs driving global trade and investment  Massive foreign direct investment & other private flows, mainly to MICs  ODA has played a key role in LICs  “New” donors providing trade and investment finance, South-South knowledge exchange  Significant progress in poverty reduction and other MDGs  If growth momentum is maintained, extreme poverty could drop to 6% in IDA countries by 2030

Changing Global Economic Landscape 7 Success requires addressing risks  Slow down in economic growth can delay progress by half a century  Areas of focused attention include:  Better leverage of public and private resources to support growth and service delivery  Tackle growing inequality, particularly in resource rich countries  Address global challenges such as climate change, recurrent crises, security

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 Recognize the Diversity of Clients Focus on Development Solutions Work as One World Bank Group Exercise Dynamic Selectivity Building Blocks

9  1.2 billion people live on less than $1.25 a day, 2.7 billion live on $1.25 billion-$4.0 a day  Focus on poor people and vulnerable in all countries  Large and small  Across a spectrum of income levels  Different institutional capacity – FCSs will require special attention WBG Strategy- Building Blocks Serving the poor and vulnerable everywhere

10  Engage a diversity of clients at country level  Public sector, including different levels of government  Private sector clients  Engage at the global level in critical areas:  Promote collective action  Deliver global public goods  Support global agenda WBG Strategy- Building Blocks Recognize the diversity of clients

11  Leverage private and public resources for greater development impact  Maximize synergies of each WBG institution, while recognizing distinct client focus  Enhance consistency in policies, processes, and complementarity  Better share resources across the institution WBG Strategy- Building Blocks Working as one World Bank Group

12  With a line of sight to goals  Responding to client needs  Based on WBG comparative advantage  Evidence-based WBG Strategy- Building Blocks Focus on development solutions

Dynamic selectivity: three lenses 13 Impact Comparative Advantage Line of Sight Focused WBG Programs WBG Strategy- Building Blocks

FIFs 14 Serving diverse clients with a range of financing instruments WBG and Development Partners Investors Un-earmarked earmarked loans, investments grants grants, investments grants, concessional credits IBRD, IFC, MIGA Capital IDA Fund Trust Funds IFC Trust Funds IFC Trust Funds Results Clients

15 * Excludes capital subscriptions for IBRD, IFC, MIGA Partners’ Contributions to WBG FY08-FY12, $ billion World Bank Group concessional finance portfolio WBG and Development Partners

16 Concessional Finance Business Lines: Disbursements, FY12 High None Single donor Multi- donor World Bank Operational Control Level of Pooling of Concessional Funds Trust Funded Partnership Programs US$1.8 bn Trust Funded Country Ops US$2. bn IDA US$14.8bn FIF Partnership Programs US$5.1 bn WBG and Development Partners

Un-earmarked, country-driven, performance-based Finance and policy advice to 82 poor countries Ranked as one of most effective by external reviews Makes all assistance more effective and sustainable Harness WBG expertise and synergies with IFC and MIGA From debt relief, to food and economic crises, to fragile states Leader in Open Data and access to information Strong results track record, leader in results measurement, flat budget 17 Why invest in IDA? An effective delivery platform Builds Institutions and local capacity Leverages public & private resources & knowledge Responds to complex, global issues Transparent and accountable Delivers results, cost effectively and efficiently WBG and Development Partners

18 WBG and Development Partners  For the World Bank Group  Fragile & Conflict States, non-member states, countries in arrears  Crisis and emergency response  Piloting innovation  Technical assistance, advisory services  Engagement with Civil Society Organizations  Global Public Goods and global policy issues  For Partners  Targeted support in areas of limited or no presence  Visibility, influence, fiduciary controls, low administrative costs  For Clients  Access to grant financing, low transaction costs What is the role of Trust Funds?

19 Implications for Joint WBG – Partners Work Emerging World Bank Group Strategic Framework  Country-driven model -- as a base Country Assistance/ Partnership Strategies: expanding the range of country partners – public, private, Non- governmental Organizations  Corporate Priorities Link to main strategic goals, comparative advantage, impact Focus could be sectoral, thematic, Global Public Goods, and/or geographic Purpose: maximize impact, branding, partnership, corporate and regional fundraising How do we work together to maximize impact?

20 Implications for Joint WBG – Partners Work Who do you see the emerging WBG strategy influencing the way we work together?  What are the expectations and guidance of development partners on the implementation of the WBG strategy at the ‘country’ and ‘global’ levels?  What are the implications for the WBG concessional finance business lines, such as IDA and trust funds? Questions for discussion