Balancing Global Public Goods and Balancing Global Public Goods and DevelopmentDevelopment

Needs of Developing countries Needs of Developing countries

Uma Lele, Former Senior Advisor, Uma Lele, Former Senior Advisor, Independent Evaluation Group, The Independent Evaluation Group, The

World Bank, World Bank,

Stockholm, August 21, 08Stockholm, August 21, 08

This Presentation Draws on This Presentation Draws on Evidence FromEvidence From

Evaluations of World Bank’s Evaluations of World Bank’s Implementation of the 1991 Forest Strategy—largest IEG Sector Implementation of the 1991 Forest Strategy—largest IEG Sector

Evaluation in 2000Evaluation in 2000 Global Partnership Portfolio Review in 2003 of 200 Partnerships of Global Partnership Portfolio Review in 2003 of 200 Partnerships of

which 70 Global Programs leading to Phase 1 Reportwhich 70 Global Programs leading to Phase 1 Report Meta Evaluation of the CGIARMeta Evaluation of the CGIAR The Bank’s Approach to Global Programs-Phase 2 Report includingThe Bank’s Approach to Global Programs-Phase 2 Report including

Global Health Programs of Communicable Diseases-GFATM, GAVI, Stop TB, Global Health Programs of Communicable Diseases-GFATM, GAVI, Stop TB, UNAIDSUNAIDS

Environmental Programs—GEF, MLF, PCFEnvironmental Programs—GEF, MLF, PCF Financial Sector Stability--FSAPFinancial Sector Stability--FSAP Integrated Trade FacilityIntegrated Trade Facility Others including –Cities AllianceOthers including –Cities Alliance

Climate Change Initiatives of Reduced Deforestation and the Bank’s Climate Change Initiatives of Reduced Deforestation and the Bank’s 2002 Forest Strategy Implementation in 20092002 Forest Strategy Implementation in 2009

Regional Public Goods Dimension of Program on TB Control in AfricaRegional Public Goods Dimension of Program on TB Control in Africa FAO Evaluation—Panel Member Responsible for all of FAO’s FAO Evaluation—Panel Member Responsible for all of FAO’s

Technical workTechnical work Recent Global Program Reviews Carried out by WB IEGRecent Global Program Reviews Carried out by WB IEG

Questions AddressedQuestions Addressed

What are public goods?What are public goods? Why have global and regional Why have global and regional

programs become important?programs become important? What ingredients are needed to What ingredients are needed to

produce GPGs and RPGs?produce GPGs and RPGs? What Implications for Donors—What Implications for Donors—

bilateral and multilateral bilateral and multilateral organizations?organizations?

Public Goods—National, Regional and Public Goods—National, Regional and Increasingly GlobalIncreasingly Global

Their non-rivalry and non-excludability spill Their non-rivalry and non-excludability spill across national boundariesacross national boundaries Non-rivalryNon-rivalry --many can consume, use, or enjoy a --many can consume, use, or enjoy a

public good at the same time: public good at the same time: one’s consumption does one’s consumption does not reduce benefits others can derive from consuming not reduce benefits others can derive from consuming the same good at the same time. the same good at the same time.

Non-excludabilityNon-excludability--it is difficult to exclude from --it is difficult to exclude from consumption those who do not pay for, or otherwise consumption those who do not pay for, or otherwise contribute to, the cost of supplying the goodcontribute to, the cost of supplying the good

Importance of Synergetic Relationship AmongImportance of Synergetic Relationship Among National Public Goods-National Public Goods- Regional Public Goods-focus covering one regionRegional Public Goods-focus covering one region Global Public Goods--Covering several regionsGlobal Public Goods--Covering several regions

Reasons for Growth of Global ProgramsReasons for Growth of Global Programs

1.1. Growing Global Agenda in Absence of a Global Government leading Growing Global Agenda in Absence of a Global Government leading to changing “flavor of the month”—from MDGs to Climate Changeto changing “flavor of the month”—from MDGs to Climate Change

2.2. Acting Alone is not a solutionActing Alone is not a solution3.3. Economies of Scale in Delivering Technologies– CGIAR, Vaccine Economies of Scale in Delivering Technologies– CGIAR, Vaccine

ResearchResearch4.4. Increased donor expectation that IOs should promote compliance of Increased donor expectation that IOs should promote compliance of

international norms and standards, capture and share global international norms and standards, capture and share global experience and good practice with developing country member experience and good practice with developing country member countries.countries.

5.5. IOs should deliver global public goodsIOs should deliver global public goods 6.6. Growing skepticism about IO’s performance in delivering on Growing skepticism about IO’s performance in delivering on

economic development at the national leveleconomic development at the national level7.7. Declining In-House Capacity of Bilateral DonorsDeclining In-House Capacity of Bilateral Donors8.8. Growing Role of Civil SocietyGrowing Role of Civil Society9.9. World Bank and IMF in search of new missions as their traditional World Bank and IMF in search of new missions as their traditional

lending role declines together with confidence in the ability of UN lending role declines together with confidence in the ability of UN agencies to deliver????agencies to deliver????

Global Programs As Vehicles to Global Programs As Vehicles to Deliver Global Public GoodsDeliver Global Public Goods

Agreed objectivesAgreed objectives Partners contribute resources (financial, Partners contribute resources (financial,

technical, staff, reputational, etc.)technical, staff, reputational, etc.) Program Activities at global, regional, or multi-Program Activities at global, regional, or multi-

country (not single country) levelscountry (not single country) levels New organization with a governance structure New organization with a governance structure

and management unit to conduct activities and and management unit to conduct activities and deliver on objectivesdeliver on objectives

Global Programs either in Existing Organizations Global Programs either in Existing Organizations or in Newly established organizations—Global or in Newly established organizations—Global Fund for ATM, Gates Program for Green Fund for ATM, Gates Program for Green Revoluation in AfricaRevoluation in Africa

Rapidly Expanding Global Programs to Deliver Rapidly Expanding Global Programs to Deliver Global Publc Goods?Global Publc Goods?

World Bank Participation in Global Programs increased from World Bank Participation in Global Programs increased from 70 in 2004 to 106 in 200870 in 2004 to 106 in 2008

World Bank Participation in 55 Regional programs in 2008World Bank Participation in 55 Regional programs in 2008 Together Global Programs spent $5.0 billion in FY 2007Together Global Programs spent $5.0 billion in FY 2007

4 percent4 percent from the World Bank – $175 million from the from the World Bank – $175 million from the Development Grant Facility (DGF) and $25 million from the Development Grant Facility (DGF) and $25 million from the Bank’s administrative budgetBank’s administrative budget

Additional 50 percentAdditional 50 percent – $2.5 billion – from Bank- – $2.5 billion – from Bank-administered trust fundsadministered trust funds

Global programs add $100 million (???) a year to the Bank’s Global programs add $100 million (???) a year to the Bank’s administrative budget according to IEGadministrative budget according to IEG

The Bank’s Sustainable Development Network manages The Bank’s Sustainable Development Network manages more trust funds than it manages the World Bank’s more trust funds than it manages the World Bank’s administrative budgetadministrative budget

Bank’s Indonesia office manages larger trust funds than the Bank’s Indonesia office manages larger trust funds than the Bank’s administrative budget for IndonesiaBank’s administrative budget for Indonesia

World Bank Role in Delivering GPGs World Bank Role in Delivering GPGs Through Country Assistance Is Also Through Country Assistance Is Also

IncreasingIncreasing

FY02 Bank's Core LEN - GPGs ($Mil, %) /a

467, 2.4%

104, 0.5%

76, 0.4%

18,667, 95.1%

322, 1.6%

Communicable Diseases

Environmental Commons

IFA

Trade

Other Themes

FY07 Bank's Core LEN - GPGs ($Mil, %) /a

879, 3.6%

51, 0.2%

988, 4.0%

22,203, 89.9%

574, 2.3%

Communicable Diseases

Environmental Commons

IFA

Trade

Other Themes

GPGs also received growing support through Bank-managed/implemented trust funds GPGs also received growing support through Bank-managed/implemented trust funds (about $100 million committed in FY02, reaching $350 million in FY07)(about $100 million committed in FY02, reaching $350 million in FY07)

Types of Global Public Goods-1Types of Global Public Goods-1

World Bank’s focus on Four GPGs:World Bank’s focus on Four GPGs: Communicable Diseases (Malaria, Tb, Communicable Diseases (Malaria, Tb,

HIV/AIDS, etc.) – But there are more than HIV/AIDS, etc.) – But there are more than 100 initiatives in global initiatives in 100 initiatives in global initiatives in healthhealth

Environmental Commons (Climate Environmental Commons (Climate Change, Ecosystems, Shared Nat. Res.)—Change, Ecosystems, Shared Nat. Res.)—carbon funds are proliferating carbon funds are proliferating

International Financial ArchitectureInternational Financial Architecture International TradeInternational Trade

Crucial Role of International Agreements In Crucial Role of International Agreements In Global Public Goods-2Global Public Goods-2

UNFCCC’s Central Role in Climate Change Agreement beyond UNFCCC’s Central Role in Climate Change Agreement beyond 20122012

UN Agencies as depository of hundreds of formal and informal UN Agencies as depository of hundreds of formal and informal agreements. Of global importance e.g., Fishing on the high agreements. Of global importance e.g., Fishing on the high seas, Codex Alimentarius plant genetic resources (ITPGR), seas, Codex Alimentarius plant genetic resources (ITPGR), plant protection (IPPC),plant protection (IPPC),

Trade RulesTrade Rules Environmental Standards and Rules, Food safety standards, Environmental Standards and Rules, Food safety standards,

safe uses of pesticidessafe uses of pesticides Information and Knowledge as GPG– international statisticsInformation and Knowledge as GPG– international statistics Policy As Good Practice and Policy Assistance as GPG—Policy As Good Practice and Policy Assistance as GPG—

Financial and Trade IssuesFinancial and Trade Issues Standards For Treatment of Communicable diseases with cross Standards For Treatment of Communicable diseases with cross

border spill overs—HIV AIDs, TB, Avian Flu border spill overs—HIV AIDs, TB, Avian Flu Other crucial agreements which make the world tick-e.g. Other crucial agreements which make the world tick-e.g.

international air, oceanic navigational/ traffic and postal rulesinternational air, oceanic navigational/ traffic and postal rules Regional Agreements on water, fisheriesRegional Agreements on water, fisheries

Informal Agreements Gaining Greater Informal Agreements Gaining Greater Legitimacy- Global Public Goods-3Legitimacy- Global Public Goods-3

Increasing Role of informal international Increasing Role of informal international standards being turned into de facto binding standards being turned into de facto binding standards—e.g., various forest certification standards—e.g., various forest certification standards, various food safety standards, trade standards, various food safety standards, trade rules, e.g, with regard to trade in engendered rules, e.g, with regard to trade in engendered species of plants and animalsspecies of plants and animals

Bilateral Donors Provide Funds and Bilateral Donors Provide Funds and Participate in GovernanceParticipate in Governance

0 10 20 30 40 50 60 70

Number of Programs (Global & Regional)

Canada

U.K.

U.S.A.

Netherlands

France

Norway

EU

Switzerland

Japan

Sweden

Germany

Denmark

Italy

Australia

of >than 15 World Bank Supported Programsof >than 15 World Bank Supported Programs

International Organizations Contribute International Organizations Contribute Legitimacy and Expertise to Global Programs-Legitimacy and Expertise to Global Programs-those participating in > 6 WB supported global programsthose participating in > 6 WB supported global programs

0 10 20 30 40 50

Number of Programs (Global & Regional)

UNDP

WHO

OECD

FAO

UNEP

UNICEF

IFAD

UNESCO

ILO

UNCTAD

UNFPA

UN-Habitat

Growing Role of Private PhilanthropyGrowing Role of Private PhilanthropyFoundations participating in more than 3 programsFoundations participating in more than 3 programs

0 2 4 6 8 10 12 14

Number of Programs (Global & Regional)

Gates

Rockefeller

Ford

ConservationInternational

McArthur

Declining Budget of UN Agencies: And Declining Budget of UN Agencies: And Competition for ResourcesCompetition for ResourcesFAO’s Budget As of 2005FAO’s Budget As of 2005

(in USD 1,000 at 1994 prices )(in USD 1,000 at 1994 prices )(in USD 1,000 at 1994 prices)

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

94 - 95 96 - 97 98 - 99 00 - 01 02 - 03 04 - 05

Biennium

Available Funds

RegularProgram

Extra-Budget.Non-Em.

Extra-Budget.Emergency

Extra-Budget.Total

TOTAL

Growing Role of Extra Budgetary Resources Growing Role of Extra Budgetary Resources At FAO and Other UN OrganizationsAt FAO and Other UN Organizations

Figure 3 Average Resources Available by Source 1994 - 2005

RegularProgram Funds

57%Extra-Budgetary(Non-emergency)

25%

Extra BudgetaryEmergency (Emergency)

18%

Challenges in Generation Of Global Challenges in Generation Of Global Public GoodsPublic Goods

Divergence In Global and Local PrioritiesDivergence In Global and Local Priorities

Divergence in Global and Local costs and Divergence in Global and Local costs and benefitsbenefits

Generation of Most Generation of Most GlobalGlobal Public Goods requires Public Goods requires strong collaboration with developing countriesstrong collaboration with developing countries

And GPGs Need A COMBINATION OF INPUTSAnd GPGs Need A COMBINATION OF INPUTS

GPGs Need: Advocacy, Knowledge GPGs Need: Advocacy, Knowledge Management, Investment, Capacity Building Management, Investment, Capacity Building

Dissemination of information and Dissemination of information and knowledge knowledge

A Neutral platform for international A Neutral platform for international dialogue and agreementsdialogue and agreements

Advocacy to generate political Advocacy to generate political commitment on issues at various levels. commitment on issues at various levels.

Investible resources Investible resources Technical expertiseTechnical expertise Institutional and human Capacity BuildingInstitutional and human Capacity Building

IEG FindingsIEG Findings

Most finance networking, advocacy or TA Most finance networking, advocacy or TA Only few finance investments:Only few finance investments:

GFATM: About US$1.5 billionGFATM: About US$1.5 billion GEF: About US$500 millionGEF: About US$500 million CGIAR: About US$500 millionCGIAR: About US$500 million GAVI: About US$400 milllionGAVI: About US$400 milllion EFA – Fast Track Initiative: About $150 millionEFA – Fast Track Initiative: About $150 million MLF: About US$100 millionMLF: About US$100 million

IEG Findings: Examples of GPGs IEG Findings: Examples of GPGs With Demonstrated Results With Demonstrated Results

CGIAR’s Plant Breeding ResearchCGIAR’s Plant Breeding Research TDRTDR Stop TBStop TB Gates Funded GAVIGates Funded GAVI International Agreement on Fishing on the High seasInternational Agreement on Fishing on the High seas Agreement on Plant Genetic ResourcesAgreement on Plant Genetic Resources A multi stakeholder approach to handling of hazardous A multi stakeholder approach to handling of hazardous

pesticidespesticides Avian Flu InitiativeAvian Flu Initiative Development of soil mapsDevelopment of soil maps But Wide Range In Complexity of Global Programs A Huge But Wide Range In Complexity of Global Programs A Huge

Challenge to Achieve ResultsChallenge to Achieve Results ——e.g., ranging from research in laboratories and delivery of e.g., ranging from research in laboratories and delivery of

services vs. complex resource management on the groundservices vs. complex resource management on the ground—e.g. on climate change, biodiversity or water or —e.g. on climate change, biodiversity or water or behavioral Changes in HIV AIDSbehavioral Changes in HIV AIDS

IEG Findings: Well Intentioned but Ill Conceived Partnerships IEG Findings: Well Intentioned but Ill Conceived Partnerships Pose significant Risks of Non-Delivery of ResultsPose significant Risks of Non-Delivery of Results

““Letting a thousand flowers bloom” ApproachLetting a thousand flowers bloom” Approach Weak Selectivity and oversight Weak Selectivity and oversight Most are donor-drivenMost are donor-driven Weak Global-country linkages Weak Global-country linkages Weak incentives to foster global-country linkagesWeak incentives to foster global-country linkages Weak Voice of Developing CountriesWeak Voice of Developing Countries Variable Quality of GovernanceVariable Quality of Governance Unclear and Diffused Accountability of Global Unclear and Diffused Accountability of Global

Programs for ResultsPrograms for Results Weak Monitoring and EvaluationWeak Monitoring and Evaluation Difficulties in measuring impacts of advocacy and Difficulties in measuring impacts of advocacy and

TATA IEG’s Efforts to Develop M and E standardsIEG’s Efforts to Develop M and E standards

ConsequencesConsequences

Rapidly Expanding Global and Rapidly Expanding Global and Regional Agenda Regional Agenda

Most International Organizations Most International Organizations pulled in opposite directions: GPGs pulled in opposite directions: GPGs and “demand driven” country needsand “demand driven” country needs

Collective Action Challenge At International Level-- Collective Action Challenge At International Level-- Identifying Specific Comparative Advantages of Individual Identifying Specific Comparative Advantages of Individual

IOs in GPG ProvisionIOs in GPG Provision

Intergovernmental nature and mandate, Intergovernmental nature and mandate, Convening PowerConvening Power Neutrality-Perception and RealityNeutrality-Perception and Reality In-house disciplinary expertise and global/member country In-house disciplinary expertise and global/member country

knowledgeknowledge Leadership in established global networks Leadership in established global networks Generation and Assembly of Global Data SetsGeneration and Assembly of Global Data Sets Unique advantages: the multi-sectoral nature of the World Unique advantages: the multi-sectoral nature of the World

Bank, WTO’s expertise on trade related matters FAO’s in Bank, WTO’s expertise on trade related matters FAO’s in agriculture and and natural resource management, WHO’s agriculture and and natural resource management, WHO’s in Health and UNEP’s in Environment. in Health and UNEP’s in Environment.

Secretariats promotion or facilitation of international Secretariats promotion or facilitation of international agreementsagreements

Collective Action Challenges For Collective Action Challenges For Donors and RecipientsDonors and Recipients

Divergent interests and priorities Divergent interests and priorities amongamong member countries with regard to specific member countries with regard to specific GPGS. GPGS.

Different capacities Different capacities amongamong developing developing country member countriescountry member countries

to participate and exercise voice in defining to participate and exercise voice in defining agreementsagreements

To implement agreements To implement agreements Divergent views among government Divergent views among government

ministries ministries withinwithin countries countries Free-riding, under-funding, lack of voice in Free-riding, under-funding, lack of voice in

the design, and implementation of the design, and implementation of agreementsagreements

Challenges in Developing and Challenges in Developing and Implementing International AgreementsImplementing International Agreements

Too many international entities leading to turf Too many international entities leading to turf problems and lack of coordination, e.g., the problems and lack of coordination, e.g., the Convention on Bio-Diversity (CBD), UNEP, Convention on Bio-Diversity (CBD), UNEP, UNCCD and other UN agencies and programs. UNCCD and other UN agencies and programs.

Overlapping mandates. E.g., WTO on TRIPS, Overlapping mandates. E.g., WTO on TRIPS, SPS, and WIPO on intellectual property. SPS, and WIPO on intellectual property.

GPGs, Millennium Development Goals (MDGs) GPGs, Millennium Development Goals (MDGs) and poverty reduction issuesand poverty reduction issues

Stakeholder perception of limited weight in the Stakeholder perception of limited weight in the international development framework. international development framework.

International Organizations Insufficient links in International Organizations Insufficient links in member countries with influential stakeholdersmember countries with influential stakeholders

Overarching ConclusionsOverarching ConclusionsInternational Organizations Do not. But Need: to International Organizations Do not. But Need: to Play up to their knowledge base and legitimacyPlay up to their knowledge base and legitimacy Establish clear priorities Establish clear priorities

between and among global agendas and local agendas between and among global agendas and local agendas

Move Upstream away from a large number of small non-Move Upstream away from a large number of small non-strategic demand driven activitiesstrategic demand driven activities

Aim for larger impacts and adopt results based frameworksAim for larger impacts and adopt results based frameworks Generate Systematic evidence of impacts—e.g. of the high Generate Systematic evidence of impacts—e.g. of the high

profile international agreements, norms and standards and profile international agreements, norms and standards and good practice manuals are being implemented, orgood practice manuals are being implemented, or

Improve coherence between headquarter and country Improve coherence between headquarter and country linkages within International Organizationslinkages within International Organizations

Improve partnerships with external actors on a selective Improve partnerships with external actors on a selective basisbasis