POST-CONFLICT FUNDAND LICUS TRUST FUND

ANNUAL REPORT

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Facilitating Transition in 1Conflict-Affected Countries and Fragile States

PCF in Action 3

LICUS Highlights 9

Learning from the Field— 13 PCF and LICUS Projects

Partnerships 16

PCF and LICUS 18in Numbers

Post-Conflict FundA Trust Fund for Assisting Conflict-Affected CountriesDevelopment Grant Facility

LICUS Implementation Trust FundStrengthening Assistance in Fragile States

The World BankOctober 2006

Facilitating Transition in Conflict-Affected Countries and Fragile States

Since 1945, civil wars around the worldhave killed approximately 20 millionpeople and displaced at least 67 mil-lion. In the past 15 years, 80 percent of

the world’s 20 poorest countries have suffered amajor armed conflict. Many of these countriesare locked in a vicious circle where povertycauses conflict and conflict causes poverty. Civilwars are the main obstacle to development andpoverty reduction in many countries.

Chronically weak-performing countriesreferred to as fragile states or Low IncomeCountries Under Stress (LICUS) also face seriousdevelopment challenges. Besides being prone toconflict, they also have the most severe institu-tional and capacity problems. Over 500 millionpeople live in extreme poverty in these coun-tries, with GDP per capita levels half that of low-income countries, child mortality rates twice ashigh, and overall life expectancy plummeting byup to 30 years as a result of HIV/AIDS, whichhas afflicted over 42 million people in LICUS.The conditions in fragile states perpetuateregional and global instability, conflict, orga-nized crime and epidemic diseases.

Conflict prevention, post-conflict recon-struction, and efforts to improve conditions in

Since 1945, civil wars

around the world have

killed approximately 20

million people and dis-

placed at least 67 mil-

lion. In the past 15

years, 80 percent of the

world’s 20 poorest

countries have suffered

a major armed conflict.

1

A N N U A L R E P O R T 2 0 0 6P O S T - C O N F L I C T F U N D A N D L I C U S T R U S T F U N D

fragile states are critical to the World Bank’s mis-sion of poverty reduction. In 1997, the WorldBank established the Post-Conflict Fund (PCF)to enhance the Bank’s ability to support coun-tries in transition from conflict to sustainablepeace and economic growth. In 2004, the LICUSTrust Fund (LICUS TF) was established tostrengthen institutions, support early efforts atpolicy reform and build capacity for social ser-vice delivery in fragile states. Both the PCF andLICUS TF are administered by one Secretariat sit-uated in the Conflict Prevention andReconstruction Unit in the Social DevelopmentDepartment of the Sustainable DevelopmentNetwork.

The PCF grants are focused on the restora-tion of the lives and livelihoods of war-affectedpopulations, with a premium placed on innov-ative approaches to conflict, partnerships withdonors and executing agencies, and leveragingresources through a variety of funding arrange-ments. Grant recipients include a wide range ofpartners – governments, institutions, non-gov-ernmental organizations, United Nations agen-cies, transitional authorities and other civilsociety institutions. Since its inception in 1997,the PCF has received $73.6 million from the

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World Bank Development Grant Facility (DGF) and anadditional $7.7 million from donors. It has approved atotal of 171 grants in the amount of $84.5 million anddisbursed a total amount of $71.8 million.

Fragile states face the most difficult developmentchallenges, with weak institutions and high risks of con-flict that prevent poverty reduction and create negativespillovers for neighboring countries. The LICUS TFassists fragile states with the most severe conflict andinstitutional problems by supporting the implementa-tion of early policy and institutional reforms. The aim isto improve performance and facilitate re-engagementwith the international community; develop resilient sys-tems for social service delivery that can continue to oper-ate effectively and mobilize multi-donor programs evenin situations of political instability; and create harmo-nized multi-donor approaches that support a selectivestrategy for reform. In January 2006, after the initial trustfund allocation of $25 million was almost fully com-mitted, the Board approved a replenishment of a further$25 million from the Bank’s surplus income. The TrustFund received an additional $1.3 million from donors,and has approved grants worth $41.1 million, with dis-bursements totaling $23.7 million for grant packages inCAR, Comoros, Côte d’Ivoire, Guinea-Bissau, Haiti,Liberia, Somalia, Sudan, Togo, and Zimbabwe, and forregional capacity building in Africa.

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In keeping with its mission to promote innovative workin conflict-affected countries, during FY06 the PCFengaged in new projects and activities while continuingits support to ongoing operations. Below is a briefdescription of some of the new projects and activitiesfunded by the PCF in FY06.

Africa Support to the Post-Conflict Recovery and EconomicDevelopment Dimensions of the Africa Peace andSecurity Agenda (FY 2006–08, total grant $2,022,500)

Many countries in Africa, which have suffered violentconflicts, have been on a gradual path to recovery.Increasingly, African leaders have shown greater com-mitment and willingness to take responsibility to preventarmed conflict. There is, however, a need to provideexpertise to help generate political consensus, commonpositions, facilitate development of polices and opera-tional guidelines.

The aim of this three-year PCF grant is to acceleratethe operations of governments and non-governmentalorganizations to achieve the objectives of the AfricanPeace and Security agenda. These include enhancing sta-bility in Africa, minimizing conflict and aligning conflictmitigation activities, and contributing to strengthening

PCF in Action

the partnership between African governmental and non-governmental partners.

This initiative will focus on three activities: (i) sup-port a process to develop a continental policy frameworkfor post-conflict reconstruction and development; (ii)support a process that leads to a common African posi-tion on the governance of natural resources, includingminimum standards and benchmarks for the exploita-tion and management of resources; and (iii) coordinateinteraction among African stakeholders and betweenAfrica and its development partners within the variousframeworks such as the G-8, the African PartnershipForum and the UN cluster system that is engaging withthe New Partnership For Africa’s Development (NEPAD)and the African Union (AU).

Russian FederationNorth Caucasus Youth Empowerment and Security (FY 2006–08, total grant $2,126,850)

The terrorist attack on a school in Beslan, NorthOssetia, in 2004, in which 331 people, including 172children, were killed drew international attention to theproblems in the Northern Caucasus and highlighted theneed for greater investments in cultural, social and eco-nomic development. Subsequently, the Government ofRussia launched an anti-poverty strategy to create sta-

ABOUT THE CONFLICTPREVENTION ANDRECONSTRUCTION UNIT AND THE POST-CONFLICT FUND

Promoting economic recovery, building insti-

tutional capacity, revitalizing local communi-

ties, restoring social capital and supporting

efforts to demobilize and reintegrate ex-com-

batants and displaced populations is the main

thrust of the Bank’s work in conflict-affected

and post-conflict countries. The Conflict

Prevention and Reconstruction Unit provides

support in designing development efforts spe-

cific to conflict-affected countries through

assessment of the causes, consequences and

characteristics of conflict, and the transfer of

lessons learned. As innovative work in con-

flict-affected societies is often not possible

through the normal sources of the Bank’s

funding, the PCF was set up as a quick and

flexible financing mechanism to support plan-

ning, piloting and analysis of ground-breaking

activities through funding governments and

partner organizations. The PCF also provides

guidance on integrating sensitivity to conflict

into World Bank activities. The aim is to opti-

mize policy and project design in conflict-

affected countries. For more details see

http://www.worldbank.org/CPR

bility in Southern Russia and requested Bank assistanceto prepare and implement this program. The proposedgrant is an integral part of this program.

The three-year PCF funded project focuses on ado-lescents and youth in the predominantly IslamicRepublics of Ingushetia and Kabardino-Balkaria, andseeks to foster greater peace and tolerance in order toprevent further eruption of conflict in these fragile areasneighboring Chechnya. The grant activities are designedto target two youth groups: adolescents from 14 to 18years and youth from 19 to 25 years, with gender-sensi-tive modules for each age sub-group. Programming foryoung women is crucial in several republics given thelimited opportunities for young women to take part insocial activities outside of school and family. The threemain components of this project are: (i) a pilot commu-nity-based, multi-purpose youth center; (ii) a programfor the promotion of peace and tolerance among youth;and (iii) capacity building for youth-related ministries.

The grant provides a quick impact instrument inthese North Caucasus republics where the Bank is nowbeginning to engage in view of a possible scaling up ofvarious investments, including those related to youthdevelopment. The methodology for this project has beenadapted from local best practices and policy approachesidentified by the Council of Europe as well as similaryouth programs implemented in Balkan countries, suchas Macedonia and Kosovo.

Philippines Mindanao Reconstruction and Development Program (FY 2006–07, total grant $1,525,000)

Mindanao, in the southern region of the Philippines, hasbeen affected by conflict for more than three decades.Some armed groups are still active in this region. Eighteenof Mindanao’s 24 provinces have been seriously affectedby the conflict. The indigenous communities inMindanao are among the poorest and most vulnerable,and have been historically excluded from governmentprograms. Many of these provinces have the lowest living

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standards and levels of public services in the Philippines.Conflict has also eroded social capital and cohesion, andhas limited the potential for the socio-economic develop-ment of Mindanao.

The proposed two-year Reconstruction andDevelopment Program (RDP) responds to a request by theGovernment of the Philippines to the Bank for assistancein the establishment of and contribution to a multi-donortrust fund (Mindanao Trust Fund) and its subsequentadministration for post-conflict reconstruction and devel-opment. The PCF grant for RDP focuses on post-conflictreconstruction and development activities to help the peo-ple in conflict-affected communities to rebuild their lives.The goal is to promote human security in the communitiesmost directly affected by armed conflict. The RDP com-bines financial, technical and capacity-building assistanceto address the needs of the communities. Some of theguiding principles for the implementation of the programare: (i) social inclusion of various ethnic and religiousgroups and indigenous people; (ii) participatory approachto encourage active participation of stakeholders to pro-mote ownership of the process; (iii) gender sensitivity tofoster women’s participation in decision-making andimplementation; (iv) environment sustainability to pre-vent degradation and promote conservation and protec-tion; and (v) accountability of leaders and officials forproper management of funds and resources.

Iraq Emergency Health Assistance Program to the Burns Unitin Al-Karama General Teaching Hospital (FY06, total grant $707,242)

The Iraqi health system, once considered one of the bestin the region, has suffered the consequences of threemajor wars, looting, inappropriate policies, poor man-agement and inadequate resource allocation. Despiteongoing reconstruction activities, the Iraqi health systemis in a crisis and not capable of responding to the urgentand basic needs of the population. Terrorist bombings inIraq, including in crowded areas, have resulted in mass

casualties, with high burn rates among victims. Iraq’snational health system is currently unable to provideacceptable standards of emergency health care servicesdue to shortage of drugs and essential diagnostic equip-ment, deteriorated conditions of health infrastructure,and lack of maintenance and repair. Burns units in spe-cialized hospitals are extremely vulnerable to these con-ditions, which lead to unnecessary deaths. The rates ofhospital deaths from burns are directly related to thepoor conditions in the hospital, inadequacy of treat-ment, lack of training in treatment techniques, sec-ondary infections, and general lack of financial resourcesfor rehabilitation and equipment. The Iraqi HealthMinistry is making efforts to effectively address thesemultiple problems and is partnering with an experi-enced international NGO for better results.

An Emergency Health Rehabilitation Project (EHRP)is being implemented with financing from the Bank IraqTrust Fund. However, specific needs such as those of spe-cialized burns are not addressed by the EHRP and thePCF grant focuses on these needs. The project aims to:(i) improve the conditions in the burns unit of the Al-Karama Hospital in order to reduce by 50 percent themortality and morbidity rate in the hospital of peoplewho have suffered second or third degree burns; (ii)increase the level of knowledge of burns diagnosis andtreatment among medical and support staff; and (iii)develop the Health Ministry’s knowledge on manage-ment of burns units and the treatment of burns patients.This grant enables the Health Ministry to use this projectas a pilot program for future upgrading of other burnsunits in the country and test new implementationarrangements by partnering with an NGO.

West Bank, Gaza and Israel Facilitating Trade Flows Between West Bank, Gaza andIsrael (FY 2006–07, total grant $216,312)

One of the most critical problems afflicting thePalestinian economy is the unreliable and inefficientmovement of goods and people across the borders

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“So how can we improve the use of the Post-Conflict Fund,” the new PCF administrator askedthe Sri Lankan country team. We said our prob-lem was that we only received proposals ran-domly from local organizations and didn’t knowwhether these would be accepted by the PCF.What we needed was a strategy and a way toimplement the strategy. So we agreed to look fora better way, and the “strategic menu” idea wasborn.

We first identified a number of issues that wethought would be appropriate for the PCF to sup-port. These were issues that could not be readilyaddressed under our IDA program because theywould involve independent thinking by organiza-tions outside the government. These issuesincluded raising awareness about the benefits ofpeace, organizing grassroots support for peaceinitiatives, encouraging cross-group exchangesand learning, and developing conflict sensitivityanalysis capability. Once a draft was ready, thePCF Secretariat made a supervision mission ofongoing operations, and discussed the list with awide range of potential partners. From these dis-cussions emerged six potential areas of support –the menu.

We then had to decide whether to be selec-tive or inclusive in seeking expressions of interest(EOI) in supporting these areas. We compromised,inviting anyone to submit an EOI, but requiring thatit be submitted in English and via the internet. To

our pleasant surprise, we received one-page EOIfrom 64 organizations.

The next step was to select organizationsfrom whom to request a three-page proposal. Wechose 24 organizations and received 22 propos-als. From these, we picked six firm and two bor-derline proposals, and these are now beingdeveloped into full-scale PCF proposals, with anex-ante review by the PCF Secretariat, which hasconfirmed that all the proposals are worthy ofsupport. Interestingly, most of the proposals arecentered around the mobilization of grassrootssupport for peace, which is clearly of greaturgency to Sri Lanka. While most of the recom-mended organizations were well known to us,several were not.

We hope that through this process we willhave proposals that can be supported by the PCFover the next few years as these form coherent,strategic responses which will collectively have asignificant impact on the understanding of con-flict and peace processes in the country. Thisunderstanding and created capacity can con-tribute to the longer-term solution of the currentconflict. We will also have done this in a trans-parent manner that permitted all major civil soci-ety actors in Sri Lanka to participate. This processis much better than the former passive model, andwe hope this can be replicated elsewhere tomake the best use of scarce but valuable funds.

Former Country Director Peter C. Harrold

A “STRATEGIC MENU” FOR THE PCF IN SRI LANKA

6

WHO CAN APPLY FOR PCF FUNDING?

A wide range of entities can apply for PCF

grants provided the grant proposal is

endorsed by the relevant Bank Country

Management Unit and is task managed by

Bank staff. Organizations wishing to apply for

grants may contact the World Bank’s country

office in their country, the management unit

of the country at the Bank headquarters, or

the PCF Secretariat. Grants range from

$25,000 to $1 million, and in the case of multi-

year programs, may exceed $1 million. In

keeping with PCF’s mandate, preference will

be given to proposals which will have a

greater impact on Bank work, and which will

generate best practices that can be repli-

cated elsewhere by the Bank and its part-

ners. Grant recipients should have a legal

status, and also have a record of financial

probity. Past recipients of PCF grants include

governments, regional and international

organizations, transitional authorities,

domestic and international non-governmen-

tal organizations, other civil society organiza-

tions, universities and think-tanks.

For application form and guidelines, go

to http://www.worldbank.org/pcf

between West Bank, Gaza and Israel. Studies by theBank and other donors, including the U.N. and theEuropean Commission, have repeatedly emphasizedthat if this problem is not resolved, there is little thatdonors and private sector investors can do to providesustainable improvement to the Palestinian economy.

The PCF grant will support Paltrade (Private SectorTrade Development Organization for the West Bankand Gaza) which has been monitoring trade activity,including both trade volumes and processing times.The grant for a 12-month period is to: (i) continuemonitoring Karni, the only goods crossing betweenGaza and Israel; (ii) expand monitoring to other bor-der crossings between Israel and the West Bank; and(iii) produce regular reports that will be disseminatedto both Palestinian and Israeli policy makers and busi-ness people, as well as to the donor community andthe public at large (through the web). Policy makerswill be able to use this information to influence borderpolicy that will lessen the impact of the closure regimeon the Palestinian economy. The PCF funding supportsa critical activity that adds technical input into an emo-tive situation, and aims to generate hard data about theimpact of the constraints and a strong rationale forkeeping the borders functioning in an orderly andtransparent fashion. Once project implementationstarts, the Bank will use the output as a regular featurefor the economic analysis of the Palestine economy.

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8

PCF GRANTS APPROVED IN FY06

COUNTRY IMPLEMENTING AGENCY GRANT TITLE AMOUNT US$

Colombia

Haiti

Iraq

Kosovo

Nigeria

Philippines

Russia/NorthCaucasus

Sri Lanka

Regional - Africa

Regional - MENA

West Bank, Gazaand Israel

Global

Protection of Patrimonial Assets of Colombia’sInternally Displaced Population - Phase 2

Emergency Health Interventions in Haiti -Prevention of Communicable Diseases and HealthySchools - Phase II

School Feeding Program

Emergency Health Assistance Program to theBurns Unit in Al-Karama General Teaching Hospitalin Baghdad

Iraq Country Social Analysis: Launch of Iraqi SocialDevelopment Knowledge Network

Regional Program for Early Child Care andDevelopment

Niger Delta Community Foundations Initiative

Mindanao Reconstruction and Development Fund(MRDF)

North Caucasus Youth Empowerment and SecurityGrant

Institutional Partnership Model for Government,Private Sector and Village Communities forLeveraging Social Capital for EconomicEmpowerment of Village Companies

Support to the Post-Conflict Recovery andEconomic Development Dimensions of the AfricaPeace and Security Agenda Led by the AfricanUnion

Development Assistance and Conflict Vulnerabilityin the MENA Region: A Policy Research and StudyProposal

Facilitating Trade Flows Between West Bank, Gazaand Israel

Policy Research and Dissemination Funding, Post-Conflict Transitions Project

International Organizacionfor Migration

Pan American HealthOrganization (PAHO)

National School FeedingProgram/Ministry ofEducation of Haiti

Première Urgence (PU)

The Stimson Center

The United NationsChildren's Fund (UNICEF)

Bank executed

Community and FamilyServices International/Bankexecuted

Ministry of Youth, Sports andTourism

Gemi Diriya Foundation

SaferAfrica

Yale University

Paltrade

Post-Conflict TransitionsProject/DEC-RG

990,000

1,250,000

250,000

707,242

96,054

284,581

1,800,000

1,525,000

2,126,850

244,250

2,022,500

50,000

216,312

100,000

In FY06, the LICUS TF allocated $17.6 million to inte-grated programs in eight countries. Below are highlightsof some of the LICUS TF funded programs in FY06.

Liberia Consolidating the Second Phase of the Transition(FY 2006–07, total grant $6 million)

Liberia has reached a critical juncture in its transitionfrom conflict to stability and democracy. The new gov-ernment elected in 2005 has initiated ambitiousreforms, but the situation in the country remains frag-ile and the risk of returning to conflict is high if thesereforms are not put in place expeditiously and socialservice delivery is not quickly restored. Post-conflictexperience indicates that swift support for positivereform is critical during the transition phase. An initialLICUS TF package for Liberia provided quick and visi-ble gains to marginalized populations, addressed gapsin basic public financial management and supportedunified donor actions.

The foundation for GEMAP, an innovative multi-donor initiative to address weak fiscal management and

systemic corruption that had the potential to destabi-lize the transition, was laid in FY06 by the work doneon public financial management skills to improve bud-get execution, accounting and auditing capacity, andpublic procurement management. The LICUS TF grantaims to institutionalize the reforms and controls devel-oped under GEMAP, support procurement aspects offinancial reform, and assist in building capacity andaccountability.

LICUS grants also support the newly constitutedLiberia Reconstruction and Development Committee(LRDC), the successor to the post-conflict Results-Focused Transition Framework, which drives the short-term reconstruction plan and the Government’smedium-term development agenda. Grants support theGovernment’s 150-day priority action matrix, strengthenthe aid coordination and resource mobilization func-tions, and foster unity of purpose on the LRDC amongthe UN peacekeeping mission, UN agencies, and keyinternational partners. A second component helps buildtwo-way communication between the Government andthe population through increased access to public infor-mation on how public resources are managed, andbroader outreach to the public on the Government’svision and activities under the LRDC.

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LICUS Highlights

ABOUT THE FRAGILE STATES UNITAND THE LICUS TRUST FUND

Strengthening assistance to chronically under-performing countries to enable them to get onthe path of sustained growth, development,and poverty reduction remains a central prior-ity for the Bank. The Fragile States Unit (for-merly the LICUS initiative), located in theOperations Policy and Country Services, sup-ports country efforts to improve the institutionsand performance of such countries throughwork with country teams on strategy develop-ment and implementation, sharing of lessonslearned on approaches, implementation ofinstitutional reforms, and partnerships withother international donors. A new fragile statesstrategy, approved by the Board in January2006, consolidates three years of operationalexperience into a strengthened framework forcountry engagement, focusing on four differ-entiated business models for countries in pro-longed crises, post-conflict and politicaltransitions, gradual reform processes, anddeteriorating governance or rising conflict sit-uations. The LICUS TF provides critical financ-ing for these activities. The combinedperspectives of the Fragile States Unit and theConflict Prevention and Reconstruction Unitunderpin the World Bank’s approach to con-flict and governance. For details seehttp://www.worldbank.org/licus

Côte d’Ivoire Support for Transition to Sustainable Peace (FY06, total grant $1.9 million)

Since the signing of the peace agreement in January2003, Côte d’Ivoire has been politically divided, withthe country split into north and south. However, a tran-sitional government is now in power and the adminis-tration is attempting to address issues of disarmamentand demobilization of ex-combatants, dismantling themilitias, governance and nationality arrangements.

On the request of the Government of Côte d’Ivoire,the Bank initiated an umbrella package consisting ofseparate but interrelated activities to support the post-conflict recovery planning process, and to help buildshort and medium term capacity for policy planningand development within the local and national author-ities. The three main activities under the package focuson: (i) post-conflict recovery planning and technicalassistance for the public sector, and economic gover-nance reforms, including audits; (ii) a youth reinsertionpilot which supports employment creation for youth at-risk and tests an approach to develop jobs and other eco-nomic opportunities for ex-combatants; and (iii) anational identification process to help Ivorians obtainproper identity documents and prevent discriminatoryaccess to services and rights, a key cause of the conflict.

Zimbabwe Maintaining Operational Readiness and CapacityDevelopment to Combat HIV/AIDS(FY06, total grant $918,450)

Living standards in Zimbabwe have been decliningsteadily since the late 1990s. The estimated proportion ofthe population living below the poverty line has morethan doubled due to diminishing real incomes and grow-ing unemployment. The main factors that have con-tributed to this economic decline are poormacroeconomic management, successive droughts, a dis-ruptive land reform program and the impact ofHIV/AIDS. The current prevalence of HIV/AIDS rates

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WHO CAN APPLY FOR LICUS TFFUNDING?

LICUS TF grants target LICUS in non-accrual sta-tus that cannot use IDA funds for basic reformsor capacity building to assist them initiatereforms that would set the stage for arrearsclearance and subsequent access to IDA financ-ing and debt relief. The Trust Fund helps to fosterclose donor coordination by giving priority tocountry programs, which are part of a coordi-nated multi-donor effort. The LICUS TF can alsofund the Bank’s contribution to an agreed multi-donor strategy in active IDA LICUS where exist-ing IDA funds are inappropriate for this purposeand the Executive Directors have endorsed sucha co-financing program in the country strategydocument.

Grant recipients may include member coun-tries, their agencies or instrumentalities, non-governmental organizations, or agencies orinstrumentalities of the United Nations. Becausegovernment capacity is weak in many fragilestates, Bank execution of LICUS TF grants maybe permitted by the LICUS TF Committee ifrequested by the grant recipient. Grants rangefrom several hundred thousand dollars to asmuch as $7 million.

For application form and guidelines, go to

http://www.worldbank.org/licus

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makes Zimbabwe one of the worst affected countries inthe world. The economic decline has created conditionsthat encourage the spread of the epidemic and make itmore difficult for those affected by AIDS to cope.Zimbabwe’s poor economic performance has also led todecreased spending on the social sectors.

The LICUS TF funded projects support the Bank’sInterim Strategy for Zimbabwe in addressing keydevelopment challenges, and focus on two areas. Thefirst, poverty analysis, includes a Second PovertyAssessment Study Survey to fill the information gapson poverty data, and analysis to inform policy discus-sions and better target international assistance. Thesecond area of assistance is capacity development tocombat HIV/AIDS by: (i) improving national capacityto monitor and evaluate the epidemic; (ii) strengthen-ing national capacity to carry out the ongoing treat-ment program; and (iii) ensuring a betterunderstanding of the rural demand for counseling andtesting in order to design and implement HIV/AIDSprograms in rural areas.

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LICUS GRANTS APPROVED IN FY06

COUNTRY IMPLEMENTING AGENCY GRANT TITLE AMOUNT US$

CAR

Côte d'Ivoire

Haiti

Liberia

Somalia

Sudan

Togo

Zimbabwe

Regional - Africa

Strategic Leadership Seminar for CAR - Phase II

Technical Assistance to Scale up GovernmentCapacity to Monitor and Evaluate Execution of PRSPand Other Financial Programs

Post-Conflict Recovery Planning, TechnicalAssistance and Economic Governance Reforms

Support to Build Communications Capacity forEconomic Governance Reform Program andIncrease Dialogue and Outreach Activities

Rapid Results Initiative

Liberia Transition Support Fund

Public Procurement Reform

Support to LDRC and Communications Program

Support for Community Driven Recovery and ServiceDelivery

Technical Assistance to Economic Managementand Planning Capacity

Technical Assistance to Post-Conflict RecoveryPlanning in Darfur

Emergency Program for Poverty Reduction (EPPR) -AGAIB-Maritine

Second Poverty Assessment Study Survey (PASS II)

Capacity Support in Poverty Analysis

Social Sector Delivery Analysis

Support to Capacity Development to CombatHIV/AIDS

Institutional Support to African RegionalOrganizations on Programming in Fragile andConflict-Affected States

Bank executed

Bank executed

Bank executed

Ministry of Economy andFinance

Bank executed

UNDP

Public Procurement andConcessions Commission(PPCC)

UNDP

Bank executed

Bank executed

Bank executed

Agence d'Appui de Base -Maritine (AGAIB-Maritine)

UNDP

UNDP

Bank executed

UNDP

Bank executed

123,000

718,640

1,900,000

299,180

99,500

1,800,000

1,100,000

600,000

232,250

300,000

231,525

427,267

300,000

150,000

100,000

618,450

244,913

in the formal/quantitative model and illustrate severaldifferent ways in which the same variable can operate indifferent contexts. They also provide a more nuancedunderstanding of conflict and the conditions underwhich different variables influence the outbreak of vio-lence. The research presented makes it clear that greedand grievances should not be seen as competing expla-nations of conflict as they are often shades of the sameproblem. The case studies suggest the need to refine theeconomic model of civil war and improve the basicmeasures used to test the model. This book can be orderedat http://publications.worldbank.org/ecommerce/

Special ReportsFacilitating Transitions for Children and Youth—Lessonsfrom Four Post-Conflict Fund Projects

Over 300 million young people below the age of 25 livein countries affected by armed conflict, representingnearly a fifth of the world’s total population of childrenand youth. More than 300,000 children and youth fightalongside adult combatants in regular armies and rebelgroups around the world.

The PCF initiated this study to draw lessons aboutthe specific issues concerning the needs of children andyouth, and examine the challenges of implementingprojects. The study reviews four PCF projects that fall

In order to learn and document lessons and best prac-tices from the ongoing and completed projects, the PCFand LICUS Secretariat reviews and evaluates programsand projects. The objective is to know what works andwhat does not, reasons for the successes of projects andtheir replication value. The following is a summary ofthe various activities undertaken along with recom-mendations.

Book LaunchUnderstanding Civil War, Vol. 1 (Africa), Vol. 2 (Europe, Central Asia, and Other Regions)

This two-volume publication, funded in part by thePCF, is a collaborative research undertaking betweenthe World Bank and Yale University. It is also a part of the Conflict Prevention and Reconstruction Unit’seffort to support research on the economic causes andconsequences of conflict, and is the second and com-plementary phase of the research on the economics ofconflict and violence. The book explores how, andunder which conditions, civil war is more likely to hap-pen. It adopts a comparative case study approach torefine and expand the ‘economics of conflict’ model.The results of the case studies add considerably to theunderstanding of conflict. The case studies provide aninsight into the complex interactions among variables

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Learning from the FieldPCF and LICUS Projects

and developing simple procedures in the judicial systemto deal effectively with water disputes and expedite theprocess of resolving conflicts. The study recommendsupdating of water legislation to keep pace with increas-ing demand and challenges in the region.

Somalia Report of the Supervision Mission of the PCF and LICUS TF-Supported Activities, October 2005, andLearning Seminar on “Contending with State Failure:Lessons from Somalia”

In 2003, the Bank, in partnership with UNDP, developeda Country Re-engagement Note (CRN) and formulated astrategy for operationalizing and piloting the Bank’sLICUS approach in Somalia, with a proposed $4.6 mil-lion grant from PCF and $1.7 million from UNDP/UNresources to support a macro-economic data analysis,create an enabling environment for the livestock andmeat industry, coordinate action plan to addressHIV/AIDS, and build capacity for skills development.

In 2005, the PCF/LICUS Secretariat initiated a reviewof the PCF and LICUS TF projects in Somalia. The two-fold objective was, first, to assess project performanceand recommend ways to improve future interventions bymeasuring quality and timeliness of project output,implementation arrangements and overall impact; and,second, to assess the relevant impact of activities out-lined in the Bank’s re-engagement strategy in Somalia,and the contribution of these activities toward improvedservice delivery, strengthened donor coordination, andimproved governance reforms. The review recommendeddedicating more human and budgetary resources todirect program management, leveraging more consistentand intensive support from sector teams, encouragingcapacity building, supporting efforts to rehabilitate andstrengthen the livestock sector given its critical role in theeconomy, supporting community-based health and ser-vice delivery, environmental asset protection, and seek-ing resources to support distance learning and developthe capacity of universities.

14

into four functional areas considered important for chil-dren and youth interventions. These include: (i) voice,inclusion and community participation; (ii) demobi-lization and reintegration of underage ex-combatants;(iii) employment generation and livelihoods; and (iv)emergency education. The review draws on internationalpractices to highlight promising approaches, and makesseveral recommendations, including involving youthand children from the outset, fostering understanding,building flexibility and adaptability into the projectdesign, and creating linkages among different sectors.

MENAWater Conflicts and Conflict Management Mechanismsin the Middle East and North Africa Region

MENA is the driest and most water scarce region in theworld and this is increasingly affecting the economic andsocial development of most countries in the region. ThePCF provided a grant to conduct a five-country case studyto investigate water conflicts at the sub-national level inthe MENA region. The countries included Egypt, Iran,Jordan, Morocco and Yemen, in addition to a special casestudy from Djibouti. The countries selected for the studyrepresent the different environmental, water availability,socio-economic and institutional characteristics that arepresent within the region.

The study looks at the working rules and mecha-nisms for minimizing or resolving conflicts over waterallocation and use. It also investigates the resilience oftraditional mechanisms to change in response to thegrowing problem of water shortage. The study discussesthe impact of technological improvements and modern-ization on the ability of users to collectively solve waterdistribution disputes. The study emphasizes, among oth-ers, the importance of adopting participatory approachesin water resources planning, management and utilizationto minimize conflicts; education and public awarenesscampaigns to enable people to change their behavior tominimize certain types of conflicts; training governmentofficials to upgrade their skills and build their capacity;

A learning seminar on “Contending with StateFailure: Lessons from Somalia” was organized jointly bythe Africa Conflict and Development Team, the ConflictPrevention and Reconstruction Unit and the FragileStates Unit, to disseminate key findings from the super-vision mission of PCF and LICUS grants in Somalia.Highlights from the Country Economic Report werealso presented for discussion. The objective of the sem-inar was to learn how the Bank can better engage inregions affected by violence, and to discuss criticalissues such as the timing and sequencing of Bankengagement, the nature of successful activities, and theuse and focus of analytical work in a failed state setting.

Central African RepublicPublic Finance Management, Institution Building,Leadership Support and Social Service Delivery

The LICUS Trust Fund provided a grant of over $4 millionto the Central African Republic (CAR) in 2004 as theBank’s contribution to a multi-donor re-engagementprocess in the country. This grant supported buildingknowledge that led to visible, albeit limited results, and

laid the foundation for scaled-up engagement followingdemocratically held elections in early 2005. The LICUSTF package provided support to public finance manage-ment and civil service administration, financed emer-gency social sector recovery in rural areas and organizedstrategic leadership seminars.

Implementation of the LICUS TF grants in CAR indi-cated that when properly managed, grants can be aneffective means to increase understanding of the com-plexity of a country’s political, economic and social situ-ation, while also making a positive contribution to thepolitical and social process. Team-building can beencouraged, it was through the leadership seminars.Tangible results can also be generated through social sec-tor recovery programs. Significant reform momentumwas built in CAR over time through technical assistanceand audits of public finance and civil service administra-tion. Execution by government or NGO was deemedmore effective than using partner development institu-tions to administer the grants. The general lesson wasthat LICUS TF projects should aim for sustainable resultsthrough specific, realistic, and monitorable outcomes.These lessons will be incorporated into the second gen-eration LICUS TF grant for CAR.

15

16

The PCF and LICUS Trust Funds partner with otherorganizations mainly through project implementationand co-funding of activities. Partnerships can involvejoint planning and/or implementation in the field,direct co-funding of Trust Funds, and parallel financingor co-financing of grant-supported projects. Recentexamples of project implementation partnershipsinclude:

n Timor-Leste PCF project, Supporting the Registration ofthe Civilian Resistance, was implemented by theCommission on Cadres of the Resistance (Comissãopara os Assuntos dos Quadros da Resistência).

n The Sudanese Development Initiative (SUDIA) isimplementing the Sudan PCF project, From EmergencyRelief to Development: Changing Livelihoods, Assets andStrengthening Civil Society Organizations. SUDIA is anNGO that aims to facilitate the linkage of people,knowledge and resources toward strengthening self-reliance among vulnerable communities in East Africaand the Horn of Africa.

n UNICEF is the implementing agency for the Côted’Ivoire PCF project, Reintegration of Children Associatedwith the Military. UNICEF’s choice is based on its long-standing involvement in child protection and reinte-gration of under-age ex-combatants worldwide and inCôte d’Ivoire.

n In Liberia, Somalia, and the Central African Republic(CAR), the LICUS portfolios include grants imple-mented by both NGOs and UN agencies, in addition togovernment-implemented and Bank-executed activities:

● Mercy Corps implemented the critical early pilotingof community-driven reconstruction in Liberia.

● In Somalia, UNFPA conducted a population quickcount and pre-census activities, and FAO workedwith regional authorities on livestock health certi-fication programs, while CARE International col-laborates with VSF-Suisse to improve Somalipastoralist community access to livestock healthservices.

● In CAR, the largest NGO in the country, COOPI,implements activities to rehabilitate public healthservices in conflict-affected communities, whileUNDP, UNFPA, and WHO collaboratively workon implementing critical activities in maternalhealth and child survival, such as potable waterand rehabilitation of maternity wards.

n A 2006 LICUS grant which seeks to strengthen theengagement of regional organizations in Africa inaddressing causes and consequences of conflict andstate fragility includes activities being implemented bythe African Development Bank (AfDB) in which con-

Partnerships

17

sultations with conflict-affected African countries willhelp shape strategies for AfDB support and engage-ment in those countries.

Donors and UN agencies have also made importantco-financing contributions to the PCF and LICUS TrustFunds, including Belgium, the Netherlands and

Switzerland, as well as the UNDP and the UNHCR. InFY06, Norway contributed $732,460 of untied fundingfor the PCF and $537,394 for LICUS. Denmark con-tributed $748,283 for LICUS. The Government of Brazil,which in FY05 had supported activities in Haiti, contin-ued its support in FY06 by contributing an additional$300,000 for the School Feeding Program in Haiti.

18

PCF and LICUS in Numbers

Perc

ent

01020304050

Africa Europe andCentral Asia

East Asia andthe Pacific

South AsiaLatin America andthe Caribbean

Global Middle East andNorth Africa

42%

11%

25%

4% 7%2%

9%

PCF Grant Approvals by Region FY98–06

Perc

ent

0

10

20

30

40

CountryGovernments

InternationalOrganizations

NGOs, CSOs, andFoundations

World BankExecuted

Universities andThink-Tanks

16%

34% 33%

11%6%

PCF Grant Implementing Agencies

Perc

ent

020406080

100

Africa Latin America andthe Caribbean (Haiti)

78%

22%

LICUS Grant Approvals by Region FY04–06

Perc

ent

0

10

20

30

40

World BankExecuted

NGOs, CSOs, andFoundations

CountryGovernments

InternationalOrganizations

25%

35%

12%

27%

LICUS Grant Implementing Agencies

19

PCF TOTAL GRANT AMOUNT APPROVALS BY FISCAL YEAR

FY FY98–00 FY01 FY02 FY03 FY04 FY05 FY06 TOTAL

Amount, US$ 19,963,667 15,209,498 12,741,150 13,449,945 5,226,400 5,955,212 11,662,789 84,208,661

No. of grants 55 26 26 22 16 12 14 171

PCF DONOR CONTRIBUTIONS

AMOUNT OF CONTRIBUTION, US$TOTAL,

DONOR BENEFICIARY FY00 FY01 FY02 FY03 FY04 FY05 FY06 US$

Belgium Great Lakes Region 1,117,531 1,117,531

Brazil Haiti 425,000 300,000 725,000

Netherlands Kosovo 2,000,000 2,000,000

Norway Various Countries 732,460 732,460

Switzerland Georgia 207,942 207,942

Switzerland Global 266,667 333,333 400,000 1,000,000

Switzerland Kosovo 603,428 647,935 1,251,363

UNDP Georgia 200,000 300,000 500,000

UNHCR Georgia 150,000 150,000

603,428 4,323,408 300,000 266,667 333,333 825,000 1,032,460 7,684,296

LICUS GRANT AMOUNT APPROVALS BY FISCAL YEAR

FY FY04 FY05 FY06 TOTAL

Amount, US$ 2,777,070 20,774,355 17,576,275 41,127,700

No. of grants 4 27 21 52

LICUS DONOR CONTRIBUTIONS

AMOUNT OF CONTRIBUTION, US$

DONOR BENEFICIARY FY06

Norway Various Countries 537,394

Denmark Various Countries 748,283

1,285,677

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NGOs, CSOs and FoundationsACTIONAID Aceh NGO Forum, IndonesiaAction Contre la FaimAfrican Women Alliance for Mobilizing ActionArch Diocese of Las Verapaces, GuatemalaArias Foundation for Peace and Human ProgressAtlas LogistiqueAustralian Volunteers International Bonn International Center for Conversion (BICC)Canadian Centre for International Studies & Cooperation (CECI)CARE InternationalCatholic Relief Services (CRS)Center for Conflict Resolution, South Africa Center for Liberal-Democratic Studies, FR Yugoslavia Centro de Estudios Internacionales (CEI), NicaraguaCharity Humanitarian Center "Abkhazelt" (CHCA)Collaborative for Development ActionCommunity and Family Services International (CFSI) Comunità di Sant'Egidio, ItalyConsortium of Humanitarian Agencies (CHA)Counterpart InternationalCurriculum CorporationEconomic Cooperation FoundationFondation pour l’Unité, la Paix et la Démocratie, BurundiFriends of Bosnia Gemi Diriya FoundationGisplan, CroatiaGroupe de Recherches et d’Echanges Technologiques (GRET)Humanitarian Affairs Review JournalIndonesian National Commission on Violence Against Women Institut d'Economie Industrielle (IDEI)Iraqi Widows OrganizationJoint Stock Company "Orgtechnika"Knitting Together Nations, SarajevoLazarus Charitable Fund of GeorgiaMedia Action International New Bosnian Design (KTN)Organización de Estados Iberoamericanos para la Educación,

la Ciencia y la Cultura (OEI)Ottar Khvistani CompanyOxfamPaltradePan American Development Foundation (PADF)Panos Institute, Washington DCPremière Urgence (PU) SaferAfricaSave the ChildrenSearch for Common GroundSelf Reliance Fund, Republic of Georgia

Soros Foundation/ Kosovo Foundation for Open SocietySudanese Development Initiative (SUDIA)Swedish Committee for Afghanistan (SCA)Synergies AfricaTranscultural Psychosocial OrganisationWorld Links Organization

International OrganizationsAsian Development Bank (ADB)Food and Agriculture Organization (FAO)International Federation of Red Cross and Red Crescent Societies (IFRC)International Labor Organization (ILO)International Organization for Migration (IOM)Organization of American States (OAS)Pan-American Health Organization (PAHO)United Nations Children's Fund (UNICEF)United Nations Department of Peacekeeping Operations (UNDPKO)United Nations Development Programme (UNDP)United Nations Economic and Social Commission for

Western Asia (ESCWA)United Nations High Commissioner for Refugees (UNHCR)United Nations Mission in Congo (MONUC)United Nations Mission in Kosovo (UNMIK)United Nations Office for Project Services (UNOPS)United Nations Population Fund (UNFPA)

Universities and Think-TanksBrookdale InstituteBrookings InstitutionCambodia Development Resource Institute (CDRI)Centre for Environment and Development for the Arab Region

and Europe (CEDARE)Council on Foreign RelationsEuropean Parliamentarians for Africa (AWEPA)Global Development Network (GDN)Harvard Program in Refugee TraumaHarvard UniversityInstitut de Recherche du Developpement (IRD)Institut d'Economie IndustrielleKenya Institute of Public Policy Research and Analysis Notre Dame UniversityNYU Center for International CooperationOberlin CollegeOxford UniversityOxford University (Center for the Study of African Economies)Peace Research Institute of Norway (PRIO)Princeton UniversityStanford UniversityState University of New York at BinghamtonThe Stimson Center

LIST OF PCF GRANTS IMPLEMENTING AGENCIES AND DONORS

NGOs, CSOs and FoundationsAgence d'Appui de Base - Maritine (AGAIB-Maritine)Agence d'Appui de Base - Savanes (AGAIB-Savanes)CARE InternationalCOOPI- Cooperazione InternazionaleINTERPEACE/National Institute of Studies and Research

(INEP) of Guinea BissauMercy CorpsPopulation Services International

International OrganizationsInternational Legal Assistance Consortium (ILAC)African Development Bank (AfDB)United Nations Development Programme (UNDP)United Nations Educational, Scientific and Cultural

Organization (UNESCO)United Nations Population Fund (UNFPA)

Government InstitutionsComite National de Lutte Contre le Sida, CARGovernment of the Central African RepublicGovernment of the Republic of Côte d'IvoireGovernment of the Republic of Guinea-BissauGovernment of the Republic of HaitiGovernment of the Republic of LiberiaGovernment of the Republic of the SudanGovernment of the Republic of ZimbabweGovernment of the Togolese RepublicGovernment of the Union of ComorosNational School Feeding Program, HaitiPL-480 Management Office, HaitiPublic Procurement and Concessions Commission (PPCC), HaitiService National d'Eau Potable, HaitiTransitional Federal Government of Somalia

DonorsGovernment of the Kingdom of DenmarkGovernment of the Kingdom of Norway

LIST OF LICUS GRANT IMPLEMENTING AGENCIES AND DONORS

University of California at San DiegoUniversity of California IrvineUniversity of Texas at DallasWoodrow Wilson CenterYale University

Government InstitutionsAfghan Assistance Coordination AuthorityAgence Française de Développement (AFD)Agencia Presidencial para la Acción Social y la Cooperación

InternacionalBinational Commission for the Development of the Frontier, Peru & EcuadorComissão para os Assuntos dos Quadros da Resistência (CAQR), Timor-

LesteCommission for National Reconciliation, TajikistanCommission for Real Property Claims of Displaced Persons and Refugees

(CRPC), Bosnia & HerzegovinaDeutsche Gesellschaft fur Technische Zuzammenarbeit (GTZ)East Timor Transitional AdministrationGovernment of AfghanistanGovernment of AlbaniaGovernment of BosniaGovernment of BurundiGovernment of CambodiaGovernment of ColombiaGovernment of Côte d’Ivoire

Government of EcuadorGovernment of EritreaGovernment of IndonesiaGovernment of KosovoGovernment of LiberiaGovernment of Sierra LeoneGovernment of South Africa Government of TajikistanGovernment of the Democratic Republic of CongoGovernment of the PhilippinesGovernment of the Republic of CongoGovernment of the Republic of GeorgiaGovernment of the Republic of MacedoniaGovernment of Timor-LesteNational Development Planning Agency (BAPPENAS), IndonesiaNational School Feeding Program, Government of HaitiRed de Solidaridad Social (RSS), Colombia

DonorsGovernment of BelgiumGovernment of the NetherlandsGovernment of the Federal Republic of BrazilGovernment of the Kingdom of NorwayGovernment of the Swiss ConfederationUnited Nations Development Programme (UNDP)United Nations High Commissioner for Refugees (UNHCR)

LIST OF PCF GRANTS IMPLEMENTING AGENCIES AND DONORS (CONTINUED)

Post-Conflict FundConflict Prevention and Reconstruction UnitSocial Development Department1818 H Street, NWWashington, DC 20433 USA

Tel: 202 458 7776Fax: 202 522 1669e-mail: cpr@worldbank.orgwww.worldbank.org/pcf