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W O R L D B A N K I N S T I T U T EPromoting knowledge and learning for a better world

2004

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Annual Report

Annual Report

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WBI at a Glance Fiscal Year 2004

Learning activities annually

Client participants

Partner institutions

Global Development Learning Network

Scholarships awarded annually under the Joint Japan/World Bank GraduateScholarship Program and the Robert S. McNamara Fellowships Program

Field Offices

more than 1,000

more than 78,000 in 124 countries

nearly 200 formal

68 centers

more than 360

Almaty, Beijing, Cairo, Marseilles, Moscow, Paris

W O R L D B A N K I N S T I T U T E

The World Bank1818 H Street, NWWashington, DC 20433USA

www.worldbank.org/wbi

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Administrator

30437

The World Bank Institute (WBI) helps people,

institutions, and countries to diagnose problems

that keep communities poor, to make informed

choices to solve those problems, and to share what

they learn with others. Through traditional and

distance learning methods, WBI and its partners in

many countries help develop capacity among

policymakers, technical experts, business and

community leaders, and civil society stakeholders;

fostering analytical and networking skills to help

them make sound decisions, design effective

socioeconomic policies and programs, and unleash

the productive potential of their societies.

Unleashing the Power of Knowledge toEnable a World Free of Poverty

World Bank Institute WBI Field Offices

World BankAll Shanghai photos: Deborah Campos

Designed by: Patricia Hord.Graphik DesignPrinted by: Jarboe Printing

Photo credits

AlmatyContact: Mr. David Mikosz

Email: [email protected]: The World Bank

41, Kazybek Bi Str.Bldg.A, 4th FloorAlmaty 480100Republic of Kazakhstan

Tel: +7 (3272) 980 580Fax: +7 (3272) 980 581

BeijingContact: Ms. Sheng Li


Level 16, China World Tower 2China World Trade CenterNo.1, Jian Guo Men Wai Avenue100004CHINA

Tel: (86–10) 5861 7600Fax: (86–10) 5861 7800

CairoContact: Mr. Jamal Al-Kibbi


World Trade Center1191 Corniche El-Nil, 15th FloorBoulaqCairo, Egypt 11221

Tel: (20–2) 574 1670(20–2) 574 1671

Fax: (20–2) 574 1676

MarseillesContact: Chantal Dejou


Villa Valmer271 Corniche Kennedy13007 Marseilles, France

Tel: (33–4) 91 99 24 45 (2440 for operator)Fax: (33–4) 91 99 24 79

MoscowContact: Ms.Tatyana Leonova

Email: [email protected]: The World Bank Institute

Moscow OfficeBolshaya Molchanovka, 36/1 Moscow, Russia, 121069

Tel: (7–095) 745–7000Fax: (7–095) 967–3166

ParisContact: Mr. Jean-Eric Aubert


64/66, avenue d'léna75116 Paris, France

Tel: (33–1) 40 69 30 00Fax: (33–1) 40 69 31 51

The Shanghai Challenge 02

James D. Wolfensohn, President, The World Bank

External Advisory Council 04

A Record Year 06

Frannie A. Léautier, Vice President, World Bank Institute

The Spirit of Shanghai 16

The Shanghai Global Learning Process and Conference, May 25–27, 2004

Developing Capacity One Country at a Time 22

Global Programs, Local Impact 34

Extending Our Reach 44

Measuring Progress in Times of Change—Evaluation 54

WBI Thematic Learning Programs 58

Appendixes1 Budget for FY03 and FY04 70

2 World Bank Institute Management 71

3 Thematic and Regional Distribution of Programs, FY03 and FY04 72

4 Focus Countries by Region 73

5 WBI Partners 74

6 Scholarships and Fellowships Program 80

7 Publications 82

Contents

2 W o r l d B a n k I n s t i t u t e

We live in a world fraught with conflict and, in many places, desperation born of abject poverty. In aworld of more than 6 billion people, 1 billion own 80 percent of global resources—another 1 billionbarely survive on a dollar a day.

More than 1 billion people have no access to clean water; 115 million children never get the chanceto go to school; and nearly 40 million people are HIV positive, most of them with little hope ofreceiving treatment. And yet as a group the developed economies spend just $68 billion on develop-ment assistance for the poor; at the same time the United States and the European Union provide$300 billion annually to subsidize their agricultural producers.

In the next 25 years our planet will be home to an additional 2 billion people. Only 50 million ofthese, fewer than 3 percent, will be born in the richer countries. The rest of the new arrivals maywell view their planet as inequitable and unjust—offering little hope for a better life.

At the Millennium Summit in 2001 the entire world, speaking through the United Nations, made acommitment to halve extreme poverty and achieve ambitious goals in health, education, women’srights, and the environment.

The Millennium Development Goals (MDGs) have renewed our focus on development and made possiblea broad consensus on what is needed to reduce poverty and improve living conditions in developingcountries. Today, a unique opportunity is presented by the convergence of the political will to investin development (as expressed at important international conferences in Monterrey, Doha, andJohannesburg), the recent growth of new communication tools, and the recognition of the importanceof knowledge sharing and capacity building for successful and sustained development.

An enormous need exists to accelerate results in achieving the MDGs, to share those results andexperiences, to foster knowledge exchange among developing countries, and above all to find solutionsfrom developing countries for developing countries.

In May 2004 the Shanghai Conference and Global Learning Process on Scaling Up Poverty Reductioninaugurated a fresh dialogue on development and an ongoing collaboration among key partners committed to reducing poverty and promoting sustainable growth in developing countries. Throughtechnology-based communities of practice, many supported in one way or another by the World Bank

James D. Wolfensohn,President, The World Bank The Shanghai Challenge

3A n n u a l R e p o r t 2 0 0 4

Institute (WBI), development professionals and policymakers are pursuing the Shanghai agenda byexchanging knowledge on effective solutions to poverty.

The Shanghai Conference was about lessons learned by doing—about the kind of practical andexperiential knowledge that has been so difficult to unlock and share with those who have the mostto gain from it. The 100 case studies prepared for the event, each of which showed how peoplehave scaled up pilot programs to national and even regional scope, are an invaluable informationbase that WBI has made freely available throughout the world.

Shanghai was also about useful ideas, tangible solutions, and working proof. It was about howknowledge underpins progress in development. And it was about South-South cooperation in reducingpoverty and achieving the MDGs. By bringing people who know together with those who need toknow, Shanghai consolidated the experience of many practitioners, allowing them to draw practicallessons on how to get results on an ever larger scale.

The seminal event in Shanghai last May is just one example—a particularly visible one, to besure—of WBI’s approach to developing capacity for growth and change in the member countries ofthe World Bank. To better link knowledge to action, WBI works with the Bank’s country teams toassess the capacity needs of each country and to design appropriate solutions through combinationsof training courses and seminars, policy advice, and global dialogues that bring policymakerstogether from around the world for peer learning.

In FY04 WBI has helped make capacity development an integral part of Country AssistanceStrategies and Poverty Reduction Strategy Papers. As we approach 2015 and seek new ways ofaccelerating progress toward the MDGs, WBI’s role is sure to grow.

I invite you to explore, through this brief report, some of the most exciting work being done indevelopment today.

“By bringing people

who know together

with those who need

to know, Shanghai

consolidated the

experience of many

practitioners,

allowing them to

draw practical

lessons on how to

get results on an

ever larger scale.”


WBI’s External Advisory Council, meeting in Washington in October 2003, discussed the Institute’scountry focus and concluded that it added significant value to World Bank programs. The Councilnoted that WBI’s work with Indonesia, Kenya, and Madagascar exemplified new and important rolesfor the Institute, roles that should be expanded and replicated through partnerships with in-countryinstitutions, civil society, and academia. Members also urged greater attention to youth, the MiddleEast, and the poorest countries.

External Advisory Council

5A n n u a l R e p o r t 2 0 0 4

Mr. K. Y. AmoakoExecutive SecretaryUnited Nations Economic Commission for Africa

Mr. Syed Babar AliAdvisorPackages Ltd., Lahore

Mr. Andrei BougrovManaging DirectorInterros

Professor Partha DasguptaChairmanFaculty Board of Economics & PoliticsUniversity of Cambridge

Professor Ihsan DogramaciPresidentBoard of TrusteesBilkent University

Mr. Peter Goldmark, Jr.Chairman and Chief Executive OfficerInternational Herald Tribune

Dr. Heba HandoussaAdvisorEconomic Research Forum for Arab Countries, Iran, and Turkey

Mrs. Ruth JacobyDirector GeneralMinistry of Foreign Affairs

Ms. Kim JonesVice PresidentGlobal Education and ResearchSun Microsystems

Baroness Helena KennedyChairpersonThe British Council

Mme. Huguette LabelleFormer President, CIDAChancellor, University of OttawaMember of Board of Trustees,African Virtual University

Vice Minister Yong LiVice Minister of FinanceMinistry of Finance, China

Professor Pepi PatronProfessor of PhilosophyPontificia Universidad Católica del Perú

Dr. Rafael Rangel SostmannPresidentMonterrey Tech University System

Professor Eisuke SakakibaraGlobal Security Research CenterKeio University, Japan

Dr. Adele SimmonsVice ChairChicago Metropolis 2020

Mr. Tidjane ThiamDirector, Group Strategy & DevelopmentAviva plc

Dr. Jan-Olaf WillumsHeadInSpire Management AS

FY04 was a record year for WBI, not only innumbers of activities delivered and clientsreached, but also for developing innovativetools and forging a closer alignment with WorldBank operations. WBI’s country-focused strategy,launched in FY03, was firmly in place. And ourtransition from individual training as our primary focus to the design and delivery ofproducts and services for long-term institutionalcapacity development was largely completed.By aligning our work program with the WorldBank’s operational priorities, that shift ensuresthat we address our clients’ development priorities head on.

WBI’s country-focused strategy is not justabout where we do business, but also abouthow. It is about customizing content to meetspecific national needs and priorities anddesigning programs with long-term institutionbuilding in mind. At the same time, to increaseour reach, we continue to deliver successfulmass products to select clients, usually throughpartners, trust funds, and donors, using infor-mation technologies, mass media, and otherknowledge-sharing instruments innovatively.We are increasing our effectiveness by focusingon results and on efficient use of resources.

Local capacity—the heart of thecountry-focused development agenda

Capacity development is the key to develop-ment effectiveness. Applying knowledge, skill,

and innovation to real problems is the best wayto make development sustainable. But acquiringand using knowledge is not a simple matter.

Two years ago in Monterrey developing coun-tries asserted their will to determine their ownpaths to economic progress, recognizing theneed to build their skills, knowledge, organiza-tional capacity, and social responsiveness—that is, to build a locally owned capacity forgrowth and change by drawing on the humantalents that represent our planet’s most valuableand productive resource. Since then the WorldBank has recognized the importance of capacitydevelopment by formally including it in theCountry Assistance Strategy framework, throughwhich the Bank and its clients cooperate to articulate national development plans.Integrating learning and capacity developmentinto long-term development strategies createsan enabling environment that helps ensure the success of the Bank’s lending programs andof other development assistance.

The Bank has developed various instruments tomainstream capacity development into its opera-tions through:

n Technical assistance components in loans and grants

n Analytical, programmatic, and advisory services to build capacity

n And a growing set of services and productsfrom WBI.

Frannie A. Léautier, Vice President, World Bank Institute

A Record Year


Impact, reach, effectiveness—WBI’s objectives and directions for FY04

Offerings

Participants

Training Days (000s)

(000s)

Objectives

To increase impact by focusing on capacitydevelopment and strengthening country-level work

To extend reach through partners, technology,mass media, and knowledge-sharing instruments

To increase effectiveness by focusing on resultsand using resources efficiently

To further align WBI with the World Bank’soperations and corporate priorities

Directions

Offering products and services to build long-term insti-tutional capacity (advice, capacity needs assessments,capacity development pilots)

Testing new approaches and helping clients do thesame while striving for results at scale

Championing the capacity development agenda withinthe World Bank

Integrating with the World Bank’s country operationsand customizing content to country needs

7A n n u a l R e p o r t 2 0 0 4

In fact, more than 20 percent of the WorldBank’s lending and a majority of nonlendingservices are now focused directly on capacitybuilding activities.

In FY04 WBI made major contributions to CountryAssistance Strategies—among them those ofBangladesh, Brazil, India, Kenya, Lao PDR, Mexico,and Nigeria (pages 22–23). While consistentlymeeting the increasing demand for knowledge andlearning products from the Bank’s Regional oper-ating staff, moreover, we maintained the qualityof our thematic offerings, as demonstrated in mul-tiple evaluations (pages 54–57).

WBI’s approach to capacity development operatesat three levels: individual skills building, institu-tion building, and helping segments of societiesparticipate in their own development—alwayswith the objective of meeting the expressedneeds and priorities of a given country.

Enhancement of individual and group skills andcompetencies promotes organizational capacityand, at term, institutional capability. WBI delivers,normally with partners, both face-to-face andonline courses and seminars on topics rangingfrom health to corporate social responsibility tofiscal decentralization and more, under its 16thematic learning programs (pages 58–67). WBI helps institutions conceive more accurate

plans and provide better services through part-nerships with selected organizations in targetedcountries. To be effective, this form of capacitydevelopment requires a sustained presence overtime. For this reason the Institute has launcheda number of multiyear initiatives in severalregions (pages 24–26).

One example of capacity building on the societallevel is WBI’s anticorruption program, whichhelps countries diagnose governance issues anddevelop action plans to address those issues.WBI generates Worldwide Governance Indicatorsfor 200 countries and has completed 7 countrygovernance diagnostics. The indicators are amuch-consulted resource for good-governmentprojects around the world.

Thematic learning programs—extending reach

With the help of our donor and content partnersWBI extended its reach once again in FY04. Some78,500 individuals participated in 1,016 activities(294,200 training days)—a 50 percent increasefrom two years ago. Much of the increase wasachieved by using innovative distance learningtechniques together with the affiliates of theGlobal Development Learning network (GDLN);some 250 of WBI’s activities were delivered usingsuch techniques and facilities. WBI also helped

The growing reach of WBI’s thematiclearning programsexceeded expectationsin FY04

WBI enhances capacity at the individuallevel through targeted learning offerings inkey areas of social and economic develop-ment. In FY04, WBI delivered over 1,000learning offerings, and reached more than78,000 participants

FY02 FYO3 FY04

FY02 FYO3 FY04

FY02 FYO3 FY04

Staff

Client

560

715

1,016

560

78.5

58.4

48.1

214.1238.0

294.2

680 907

Staff

Client

Staff

Client

48.1 55.7 74.4

293.2237.2214

Influencing the Capacity Development Agenda of the World Bank

WBI’s reorganization in FY03 (appendix 2) was based on the growing awareness that capacity develop-ment services would be effective only if precisely targeted—that is, only if the services were customizedto fill specific gaps in the client country. As an operational vice-presidency within the World Bank, WBI isnow able to influence policy and program design. This has allowed us to apply our intellectual resourcesto the Bank’s results agenda, making appropriate use of indicators, databases, diagnostics, and evalua-tion. WBI’s country-focused approach begins with close consultation with the operational staff of theWorld Bank—those who know their clients best. Together we carry out a capacity needs assessment, theresults of which find their way into a Country Assistance Strategy and Poverty Reduction Strategy Paper—thereby directly supporting the country’s development objectives.

Implementing the strategy

In implementing its strategy of increased alignment with the Bank’s operational priorities for capacitydevelopment the Institute will:

n Continue to extend and refine a more country-focused approachn Design and deliver programs, products, and services with clear operational value-addedn Develop an optimal staff skills mix to support these products and servicesn Increase the effectiveness of policies and procedures for working with other Bank unitsn Establish a framework and process for evaluating capacity developmentn Implement a country-based budgeting system to ensure proper allocation of resources based on

country needs and demandsn Fully integrate WBI into the Bank’s operational policymaking process through participation in the

Bank’s regional and vice presidential policymaking groups and committees.


create self-sustaining networks to share knowl-edge among development practitioners in theSouth, especially through the GDLN and by usingdistance learning technologies (pages 44–45).

Nurturing global programs

Developing countries that aim to strengthengovernment effectiveness must be able to moni-tor governance closely and accurately. Doing sorequires a multidisciplinary capacity, both humanand institutional, that is weak in many develop-ing countries. WBI’s Global Governance program(pages 34–38) aims to strengthen it through:

n Targeted technical assistance for the designand implementation of diagnostic surveys andgovernance action plans

n “Learning by doing” activities and training(traditional and e*based)

n Partnerships between the government andcivil society organizations.

To properly tailor programs to local conditions andchallenges, it is first necessary to pinpoint thestrengths and weaknesses of a country’s institu-tional capacity. That is the goal of WBI’s ongoingwork to develop diagnostic tools and indicators.

Contributing to the capacity development knowledge base

WBI has contributed to the international debate onapproaches to capacity development by designingand implementing new diagnostic tools and instru-ments to assess countries’ capacity developmentneeds (such as country program briefs, capacitydevelopment needs assessments, cabinet-levellearning retreats, and rapid results initiatives).These intellectual contributions will help shape ourfield for years to come—within the World Bank andthroughout the development community.

To take an example, the Knowledge AssessmentMethodology (KAM) is a tool used by clients to

9A n n u a l R e p o r t 2 0 0 4

Skill of Individuals Organizational Capacity Societal

WBI’s approach to capacity development responds to needs at the individual,institutional, and social levels

Building Capacity

WBI integrated with Operations

WBI & Partners

WBI

L Learning Events L Service DeliveryInstitutions

L Capacity BuildingInstitutions

L Cabinet members

L Global issues

L Knowledge Economy& GovernanceDiagnostics

Global Development Learning Network; Multimedia Techniques and Technologies

benchmark their preparedness to make effectiveuse of knowledge for economic and social devel-opment. In April 2004 WBI’s Knowledge forDevelopment (K4D) team participated in theThird Europe and Central Asia (ECA) KnowledgeEconomy Forum in Budapest, which focused onthe themes of innovation and education. TheK4D team leader gave a keynote presentation onglobal knowledge economy issues for ECA countries and contributed to a workshop onresearch-market interactions. As an input to theforum, K4D also developed a Knowledge EconomyBenchmarking Assessment for Slovakia.

As part of the K4D program, policymakers andrepresentatives of civil society from three fran-cophone African countries (Benin, Mauritania,and Senegal) participated in five GlobalDevelopment Learning Network (GDLN)-basedpolicy dialogues to discuss major knowledgeeconomy policy planks—education, innovation,and information and communication technolo-gies—as well as the usefulness of the knowledgeeconomy concept as applied to Africa. A detailedreport on Mauritania and a CD-ROM of the policydialogue are being developed.

Raising productivity to do more with less

Proactive use of technology, a strategicapproach to partnerships, alignment of programswith the Bank’s operational priorities, andstrategic evaluation have enabled WBI to scaleup its activities dramatically while maintainingquality at high levels.

WBI’s budget reached $67.2 million for FY04(appendix 1). Part of the additional funding wasused to deliver the Shanghai Conference andGlobal Learning Process on Scaling Up PovertyReduction, a major effort managed by WBI tobuild capacity in a new way.

WBI managed in the past year to raise productivityby planning activities farther in advance, monitoring costs more closely, focusing ourresources on an agreed core of key outputs,merging programs to achieve economies of scale,eliminating an expensive program from whichreturns were not commensurate with costs, drawing more heavily on trust funds, working

with partners (appendix 5), and using distancelearning and multimedia techniques.

We saw a substantial expansion in skill buildingactivities, as evidenced by the sharp increases inlearning offerings and training days. Distancelearning contributed 35 percent of training days,and deliveries with partners grew to nearly 51 per-cent of total offerings. In all, some 78,500 partici-pants from around the world benefited from WBIlearning events (appendix 3). In addition, GDLNprovided a conduit for other World Bank units andoutside partners to reach another 15,000 partici-pants and to deliver 51,750 training days as thenumber of external content partnerships grew.

In the coming year and beyond, our efforts willbe focused on further aligning WBI’s capacitydevelopment engine with the World Bank’s oper-ational priorities and policies. The main emphasiswill be on scaling up the delivery of products oftested effectiveness and high demand, monitoringresults, and seeking wider outreach throughmedia. With shrinking budgets, priorities willhave to be narrowed; WBI’s recent organizationalchanges will need to yield even greater efficiencies while achieving even better results.

WBI takes an integrated approach to budgetplanning and program financing, using our WorldBank budget in combination with the trust fundresources that now account for about 50 percentof our thematic program budget. In FY04 trustfund disbursements of $16.4 million exceededthe figures for FY03 and FY02—$14.0 millionand $12.1 million, respectively.

Tools and methods for capacitydevelopment

Capacity development is a complex process thatvaries not only by country, but also by sectorand even by institution. When WBI shifted itsstrategy to be more responsive to country needs,we had to develop ways of identifying eachcountry’s capacity needs and articulating acoherent program to address them.

We now have tools and approaches for respondingto distinct situations and socioeconomic require-ments. By concentrating on a limited number offocus countries (page 23), we have been able to

The Shanghai conference and agenda—expanding what works

In FY04 the Institutedesigned and implementedthe year-long GlobalLearning Process andConference in Shanghai onScaling Up PovertyReduction (pages 16–21),attended by more than1,200 development profes-sionals, ministers, andheads of state. TheShanghai Agenda resultingfrom the conference estab-lished that achieving theMDGs will depend not onlyon increasing resources butalso on renewed commit-ment to adapt and acceler-ate implementation of suc-cessful approaches tofighting poverty and otherhuman problems.


The World Bank, the city of Marseilles, and the Institutde la Méditerranée opened the Middle East and NorthAfrica Knowledge Hub (MKH) in Marseilles in March2004. Using state-of-the-art information and communi-cations technologies, the center boosts capacity forknowledge sharing and learning in the Middle East andNorth Africa, a region that is poorly integrated with therest of the world.

The MKH works on four priority themes identified forthe region: knowledge for development; education andemployment, including youth issues; urban manage-ment; and governance and transparency. Water, healthissues, and private participation in infrastructure maybe added later.

Exploiting synergies between the World Bank’s capacitybuilding programs and those of the EuropeanCommission, the hub matches regional demands withthe global supply of knowledge services and promotesdistance learning programs in French and Arabic. Themodern videoconference technologies of the GlobalDevelopment Learning Network provide interactiveaccess to more than 60 countries. Training centers,professional networks, universities, and think tanks inthe region will play lead roles as knowledge connectorsand providers.

Urban management. At the Conference on Knowledge forDevelopment in Marseilles in March, some 30 mayors fromAlgeria, Arab Republic of Egypt, Jordan, Lebanon, Morocco,Syria, Tunisia, and West Bank and Gaza signed aCooperation Charter with the Network of European Cities,led by the city of Marseilles and the World Bank. The mayors chose the areas in which they needed help fromthe Network: city development strategy, urban vulnerabilityreduction, urban environment, urban transport, provisionof public services and private sector involvement.

A web conference on “City Strategy” for French-speakingmayors from Algeria, Morocco, and Tunisia was held onMay 25. The topic, presented by WBI and Cities Alliance,was how to build a city development strategy as a toolfor effective governance and management, along withcreative ways to involve all stakeholders in the strategicvisioning and planning process.

Governance. To launch the Governance Program of theMediterranean Development Forum, WBI held discussionswith the OECD and the United Nations DevelopmentProgramme on a multidonor regional initiative for“Transparency, Accountability, and Good Governance inthe Middle East and North Africa.” Other talks with theEuropean Commission dealt with the prospects of forminga network of governance experts to work in close coordi-nation with government officials. The “MediterraneanGovernance Consortium” would strengthen links betweenpolicymakers and knowledge producers in the variousareas of governance.

Knowledge for Development. Algeria, Islamic Republic ofIran, Jordan, and Morocco are among the countries of theregion that are counting on the knowledge-based economyto set their economies on a more dynamic and sustainablepath. Two major conferences in Marseilles in 2002 and 2004raised awareness about the concept of a knowledge-basedeconomy and tackled the question of the reforms needed to advance the concept in the region. Education reform,women’s participation, urban planning, and the role of government in fostering innovation came out as key issues.Following the second conference in March 2004, the MKHprovided in-country support to Algeria, Morocco, and Tunisiain their efforts to begin national work on the K4D issues.

Mediterranean Development Forum. In FY04, the MDF, apartnership of regional think tanks, the UNDP, and theWorld Bank, launched the MDF5 program with the overalltheme of “Reforms in the MENA Region.” MDF5 is anaction-oriented program that focuses on implementingreforms in areas where countries are lagging. Themesinclude the rule of law, judicial reforms and developmentin the Middle East and North Africa (led by the LebaneseCenter for Policy Studies), local governance and communityempowerment (led by Tesev & Hamyaran Iran NGOResource Center), the challenge of institutional reform inthe region (led by the Egyptian Center for EconomicStudies), and considering gender in institutional reforms(led by CAWTAR). The MDF partners will work with thesupport of key partners in Europe. Each of the thematicprograms will include face-to-face and videoconferencedebates, projects, seminars, training, and on-line discus-sions. Entrepreneurship, corporate governance, and tradereform are additional themes being considered for FY05.

Getting closer to Africa and the Middle East—WBI’s Marseilles hub

11A n n u a l R e p o r t 2 0 0 4


The importance of building sustained capacity in client countries requires WBI to make a long-termcommitment through multiyear programs. In FY04 WBI launched 14 pilot partnership projects with SDIsand CBIs.

Service delivery institutions (SDIs) provide public services or perform a government function. WBI helpsstrengthen the organization and improve service delivery through a combination of training, policy, andinstitutional advice and acts as an intermediary to help brainstorm with other similar organizations. Capacity building institutions (CBIs) work in partnership with WBI to help strengthen their capacity todeliver training.

New business lines for FY04—partnering with capacity building institutions (CBIs) and service delivery institutions (SDIs)

Focus on Institution BuildingService Delivery Institutions

L Bangladesh BankL Retirement Benefits Authority of KenyaL Associations of Water Enterprises in IndonesiaL Russian Federation Chamber of Commerce &

Russian Union of IndustrialistsL Ministry of Labor and Social Policy in RussiaL Ministry of the Interior and the

Prime Minister’s Office in TurkeyL Department of Statistics in Thailand L Ministry of Municipal Affairs in Jordan

Capacity Building InstitutionsL Ho Chi Minh Political Academy in VietnamL Administrative Staff College of IndiaL Moscow Medical Academy,

Higher School of Economics, RussiaL Centre de Formation Continue-Burkina FasoL Makerere University in UgandaL East and South Asia Network Partnership—India

Enhancing capacity for urban reform:Administrative Staff College of India(ASCI)

BackgroundL To meet challenges of urbanization, capacity

building of urban institutions and city managers is critical.

L ASCI (premier training institute for mid-careerIndian government officials) lacked a regularurban management program.

L ASCI-WBI partnered to address need.

Partnership resultsL ASCI offers regularly scheduled learning activi-

ties. Some 800 officials trained in CY2003.L WBI designing certification process for

city managers, with Ministry of UrbanDevelopment.

L City managers to complete 4 to 6 modules,write report using own municipality as case,and submit for approval by a board of certifica-tion to obtain “certification” as city manager.

Integration with country operationsL Supports extensive urban sector capacity

enhancement components of Bank and GOI-funded urban reform and service delivery initiatives.

apply the new menu of tools and test the resultsin cooperation with Bank operations.

Capacity Development Needs Assessments (CDNAs)are developed with in-country actors to definecapacity gaps and priorities. Based on data collected from a wide range of sources, the CDNAdefines existing capacities and sets goals foraddressing problems.

Country Capacity Development Strategies areresults-focused strategies defining the steps,resources, and interventions needed to reach spe-cific capacity development objectives. Developedat country, institutional, and organizational levels, they are worked into the Country AssistanceStrategies and thus become the operational roadmap for the country and its institutions.

Country Program Briefs (CPBs) reflect the priorities of the country as defined in CountryAssistance Strategies and Country CapacityDevelopment Strategies. The CPB defines WBI’sspecific work plan within a broader capacitydevelopment plan.

All of these tools and approaches draw on otherWBI resources—thematic learning programs, governance diagnostics, and knowledge assess-ments. A recent formative evaluation of the toolsindicates that they have been well designed forlow-income countries and for identifying strategyand objectives. The challenge is to be sure thatthey are also useful for middle-income countriesand are well structured for implementation andachieving results.

Partnering with local institutions

By partnering with dynamic institutions indozens of countries and applying a sophisticated

set of learning technologies we are able to sharethe fruits of our country-focused work worldwide.

WBI has developed two new lines of businessgeared specifically to strengthening institutions(as opposed to human capital development at theindividual and group levels). These institutionbuilding pilots fall into two main categories:

n Twinning with capacity building institutions(CBI pilots). WBI works with learning institu-tions in developing countries to enable themeventually to substitute for WBI in theirregion and in their area of expertise.

n “Adopting” service delivery institutions (SDIpilots). WBI works with public and privateorganizations to identify their main capacityconstraints. We then provide or broker neededtraining and other capacity building activities.SDI pilots combine institutional strengtheningwith individual training, thereby reinforcingthe effectiveness of knowledge transfer.

In FY04 WBI launched 14 pilot partnershipprojects with CBIs and SDIs. Several are profiledon pages 47–51.

Extending reach

With WBI’s help, countries are also learning from each other, sharing knowledge about andtechniques for social change, and adapting andapplying proven methods. To advance theprocesses of learning, adaptation, and implemen-tation, WBI brings clients and donors together inconferences and learning events.

WBI also helps create self-sustaining networks toshare knowledge among practitioners in theSouth, especially through the Global DevelopmentLearning Network (GDLN) and distance learning

13A n n u a l R e p o r t 2 0 0 4

technologies. WBI now has more than 100 communities of practice that share knowledge oneverything from AIDS and malaria to trade andinfrastructure. These are helping to create sustainable global networks of expertise thatbring relevant knowledge to bear on developmentchallenges. The 68 GDLN affiliates offer develop-ment specialists and public officials learning facilities that allow them to connect with theirpeers around the world, using advanced distancelearning techniques to communicate via videoconference or the Internet, or using otherelectronic resources (page 44–45).

Our online knowledge resources—like our interactive databases on governance and anti-corruption—are accessed by hundreds ofthousands of people across the world, with growing numbers of users in developing countries.WBI’s learning technologies allow mayors inLatin America, health workers in Asia, andwomen’s groups in Africa to share knowledge ona sustained basis. During the Global Conferenceon Poverty Reduction in Shanghai, some 1,200practitioners exchanged ideas about how to takeprograms and projects to scale.

Going forward

The development community has a long way togo to meet the MDGs. The World Bank and itspartners must apply to capacity development thesame rigorous approaches that they have appliedto investments in physical infrastructure. To this

end, we are working closely with donors, othermultilateral investment banks, the OECDDevelopment Assistance Committee, and ourclients to set a course for scaling up to higherlevels of reach and impact.

In the coming fiscal year WBI will align itselfeven more closely with the World Bank’s countryoperations and corporate priorities. In the faceof budget constraints, this will mean makinghard choices to set priorities and finding innovative ways of scaling up our programs toreach greater numbers. At the same time,developing capacity requires a long-term commitment if we are to achieve sustainableand measurable results.

How should we proceed?

n Donors and lenders must coordinate their pro-grams better to avoid duplication and waste.

n World Bank member countries and their leaders must ensure the accountability of decision makers through transparent systemsof corporate and political governance. More ofour clients must include capacity building inPRSPs; we must be ready to support themwhen those plans are strong.

n Capacity for development cannot be builtovernight. Only sustained long-term programs and systemic approaches willachieve lasting results.

n We need to focus on results and outcomes.Although measuring capacity is difficult, we


need to know how the development communityis investing in capacity and the impact ofthose investments.

n We have to bring capacity developmentactivities to the same levels of quality as therest of the World Bank’s activities. Recentstudies have suggested that capacity buildingactivities in development projects—especiallythose that are poorly aligned with country-driven objectives—often do not perform aswell as infrastructure investments.

n We must work with clients to develop morerigorous tools for developing their capacityand tracking their progress.

n We need to create opportunities for experimen-tation and learning and foster a culture ofaccountability that will produce results at scale.

n We will explore, together with our partners,more innovative uses of distance learningtechniques and multimedia resources toenhance the impact and reach of our activities.

Our destination is clear, but the journey is a difficult one. Only with renewed commitment anda heartfelt belief that we will make a differencecan we hope to reach the MDGs. But what greaterachievement could there be than to help replacewant with hope and opportunity?

“We should not be afraid to say that there is

a human content in what we’re doing, but

there is also a moral and, if you like, spiritual

content in what we’re doing. We are not

here just as economists. We are here

because we owe every human being in the

world an opportunity and a chance to fulfill

their destiny.”

—James D. Wolfensohn, Shanghai, May 2004

15A n n u a l R e p o r t 2 0 0 4

The declaration of the Millennium DevelopmentGoals in 2000 and the International Conferenceon Financing for Development in Monterrey in2002 provoked a dynamic shift in the developmentcommunity. In response to those events, developing countries have asserted their will totake the reins of economic development—withdonor countries and agencies supporting theirefforts. The result has been a lowering of barriersto achieving effective results at scale.

Reflecting that shift, the Shanghai GlobalLearning Process and Conference—sponsored bythe World Bank, hosted by the government ofChina, and organized by WBI—was not just oneof many grand international meetings, but theculmination of a year of global learning andknowledge exchange among practitioners insome 120 countries.

Why Shanghai? Why now?

Although 50 years of development assistancehave lifted millions of people from poverty, disease, and fear, 2.8 billion people still subsist on less than $2 a day. Of these, 1.2billion earn less than $1 a day. The fightagainst poverty cannot be won with boutiqueprojects or one-off interventions. Solutionsthat can be scaled up are critically needed—and knowledge of how to achieve results atscale is paramount.

The primary objective of the conference inShanghai was to support the achievement ofthe MDGs, especially the poverty reduction goal,by identifying large-scale, widely reproduciblesolutions from the developing world for thedeveloping world. The organizers aimed to createa forum for an unprecedented sharing of successful and less successful poverty reductionattempts, uncovering the economic, social, andgovernance factors that enabled developingcountries to reduce poverty on a large scale.

The World Bank and other institutions acted asfacilitators of the process, bringing togetherheads of state and more than 1,200 developmentpractitioners and ministerial-level decision makers, including the heads of multilateral andbilateral aid agencies.

The road to Shanghai began with asingle question

“How do countries achieve poverty reductionresults on a large scale?”

The conference venue in Shanghai is symbolic ofthe progress that China has made in lifting 400million people out of poverty since 1981. China’swillingness to share its experiences led to theidea of inviting policymakers and people workingon poverty programs in other developing countriesto learn from each other.

Scaling Up Poverty Reduction: A Global LearningProcess andConference inShanghai

May 25–27, 2004

www.reducingpoverty.org


The Spirit of Shanghai

“Second to none

in creativity

and initiative”

The approach was to examine a set of questionsvital to reducing poverty and achieving theMDGs:

n How can developing countries accelerateprogress in reducing poverty to reach theMillennium Development Goals?

n How is it possible to take successful policies,programs, and projects and “scale them up”to raise people out of poverty more quicklyand to expand the coverage to areas wherepoverty persists?

n Is it possible for countries to learn from suc-cessful experiences within their own countryand from other countries, and to adapt thesesolutions to their own circumstances?

n What can international partners do to catalyze more effective solutions to povertyreduction?

n How can national leaders provide the impetusfor success?

A global learning process

In a nine-month Global Learning Process precedingthe conference, new information and communi-cation technologies connected participants fromacross the development community in learningevents. A program of case studies, multicountryinteractive videoconferences, online dialogues,and field visits culminated in the working con-ference in Shanghai.

n 103 case studies became the starting pointfor uncovering how successful poverty-reducingpolicies and programs evolved into large-scalesolutions.

The Shanghai case studies—what works, whatdoesn’t, and why

More than 90 studies of economicand social sectors (in a regionalor country context), along with12 country cases, explored successful and not so successfulattempts to take poverty reduc-tion initiatives to scale. The casestudies were used as referencematerial in global dialogues, presented and discussed at theconference, and incorporatedinto postconference publications.The country case studies discussand analyze poverty reductionfrom a countrywide perspective,while thematic cases presentexamples of poverty reduction in specific sectors.

Country Studies

Chile ChinaCosta RicaEl SalvadorIndonesiaRepublic of KoreaMalaysiaPoland Russian FederationTanzaniaTunisiaUganda

Thematic Studies

Investment ClimateMicrofinanceLegal and Judicial ReformEducationHealthRural/Natural Resource

ManagementAccess to WaterInfrastructure Strategies and

PoliciesEmpowering Poor WomenCommunity Driven Development/

Social FundsTransportationSecuring Access to LandTargeted ProgramsHIV/AIDSCity-to-City Challenge

What do we mean by scaling up?

Scaling up can be defined as adapting and expanding positive development experiences in space andtime. As countries attempt to extend successful approaches to new places, or sustain them over time,they must be able to learn from past experience—from mistakes as well as successes—and to adaptan approach that worked in one area to new local circumstances; to maintain programs throughchanges in political administration or in the face of weak governance conditions; and to communicatelessons of experience effectively.

The idea of scaling up includes the growing global consciousness about poverty (as in a scaling up ofawareness and the sharing of ideas). At the same time, it reflects the fact that few developing countries have achieved poverty reduction at an effective level. Very concretely, scaling up refers toimprovements in the delivery of specific services that led to widespread reductions in poverty.

17A n n u a l R e p o r t 2 0 0 4

The case studies presented in this confer-ence show how numerous lights of hopeare shining in the darkness of povertythroughout the developing world. Successstories in diverse areas such as riverblindness, women’s empowerment, landreforms, social funds, and so on clearlysuggest that the elimination of theancient curse of poverty is within ourreach. These case studies demonstratethat although developing countries maylack natural and physical resources, theyare second to none in creativity, initiative,and sincerity. We can learn a lot from one another. We welcome the GlobalLearning Process initiated by World Bankfor fruitful South-South cooperation.

Her Excellency Begum Khaleda Zia, Prime Minister of the People’s Republic

of Bangladesh

n In 29 video and e-dialogues more than 2,100practitioners discussed the cases and sharedtheir experiences on scaling up.

n 11 field trips to 8 countries enabled 350 people to investigate first-hand the factorsbehind particular interventions.

Discovering what works, what doesn’t, and why

As leaders and development specialists exchangedexperiences and observations, it became clearthat development and social change is a highlydynamic and many-layered process. The Shanghaicases help us “unpeel the onion” to reveal thegreater potential of a particular intervention forthe world at large.

n How did the Yemen Social Fund for Developmentgrow to become a nationwide program?

n How did Uganda sustain an annual growthrate of 6 percent for more than a decade?

n How did Indonesia’s community-drivenKecamatan Development Program grow from 25 villages in 1998 to 28,000 today, benefitingsome 35 million people?

A distinct feature of this learning process wasthat the experiences discussed were groundedin practice and rooted in the experience ofcountries of the South. There was no precon-ceived notion of the right formula for gettingto scale, although the work was guided by abroad conceptual framework that highlights certain factors, such as political leadership andcommitment, a culture of experimentation andlearning, institutional change, and a supportiveexternal environment.

The Shanghai Agenda

After an unprecedented knowledge exchange onworldwide poverty reduction efforts, developmentexperts in Shanghai reached a consensus onwhat needs to be done to accelerate developmentand reduce poverty. Consider this excerpt fromthe Shanghai Agenda adopted at the conclusion of the conference:

“The learning process and the discussions overthe two days of the Conference have highlightedlessons that together constitute the Shanghaiagenda for poverty reduction:

n “A long-term vision and targets that stretchbeyond immediate constraints are the startingpoints for scaling up.


At the U.N. Millennium Summit in 2000, world leaders solemnly adoptedthe Millennium Development Goals, and countries have since taken vigorousactions to this end. However, for various reasons, progress in poverty reduction around the world has fallen short of our expectations— hunger,disease, and dire poverty continue to beset many developing countries, and fulfilling the targets of poverty reduction and global developmentremains an uphill battle. . . . Development-oriented poverty reduction must be pursued with a view to strengthening the capacity of the targeted population to fight poverty and attain prosperity. With guidance andenabling schemes, we have made the masses in the poverty-stricken areas theprincipal players of the anti-poverty campaign.

His Excellency Wen Jiabao, Premier of the State Council of the People’s Republic of China

We need to accept the complexity of the realworld, the legacy of history, and the diversityof people and nations, which is the wealth ofmankind. We need to treat each people, eachregion, as a special case that requires a specificapproach. This is why the success of our actiondepends on forging a genuine partnership,with respect for the identity of all parties, inaddition to compliance with the general rulesof sound economics and good governance.

We have run up against the limitations of thehelper mentality that inspired yesterday’s policies. The keys to success are ownership andthe determination to map out one’s own roadto development.

His Excellency Jacques Chirac, President of France

19A n n u a l R e p o r t 2 0 0 4

I propose a change in attitude, a genuine global partnership. Let us dare tocreate a new development model, capable of generating better living conditionsfor the most vulnerable among us. This is not a utopia. Together, we canadvance toward a world of prosperity and equity. . . . This Shanghai Conferenceand events on poverty-related issues make up a web of opportunities toenable the mid-2005 review of the implementation of the MillenniumDevelopment Goals to identify concrete and feasible solutions to the overridingchallenge of our times: the fight against hunger and poverty.

His Excellency Luiz Inácio Lula da Silva, President of the Republic of Brazil

The Millennium Development Goals are the mini-mum conditions necessary for a morally tolerablehuman existence and condition. The question isnot whether to scale up poverty reduction; buthow, and with what.

Following many decades of frustrating searchesfor doctrinaire elixirs to social and economicunderdevelopment—sometimes in ivory towers—itis, indeed, refreshing that in this workshop we willbe searching for practical, tested, and successfulinitiatives in the economic South. . . . We did notcome to Shanghai with the baggage of dogma.We have come with open minds and hearts, insearch of what works and what produces results.

Our experience in Tanzania is that ownership ofthe development initiative and agenda is necessaryif we are to scale up and sustain poverty reductionefforts. And ownership must be dovetailed withparticipation. There can be no ownership withoutparticipation.

His Excellency Benjamin William Mkapa, Presidentof the United Republic of Tanzania


n Scaling up takes time and a comprehensiveapproach, but must be sequenced oppor-tunistically.

n A strong management focus is key for scaling up, and requires the buildup ofcapacity and long-term administrative andmanagement functions.

n Sustained growth is critical for job creationand poverty reduction.

n Partnership between all stakeholders—the government, the private sector, civilsociety, and donors—under the genuineleadership of the country is needed toleverage and scale up a country’s develop-ment efforts.

n Large-scale, long-term programs cannot beundertaken without adequacy and certitudeof financing, and, in some cases, withoutadequate debt reduction to achieve sustainable debt levels.

n Openness to trade and the successful completion of the Doha Round are essentialfor global poverty reduction.

n Poor people are assets and agents ofchange—so respect for and empowermentand involvement of poor people are necessary for successful results.

n Inclusion is critical in all aspects of scalingup. Special attention must be given to the plight of the ultra-poor, to gender disparities, to the participation of youth,and to the disadvantaged and disabled.

n The scourge of HIV/AIDS must be aggressively tackled.

n Poverty and environmental sustainabilityare closely linked. Addressing the con-straints of water, sanitation and power, and developing renewable energy are crucial for long-term poverty alleviation.

n Experimentation, measurement and focuson results, and systematic evaluation arekey to successful scaling up.

n Culture and history are essential elementsin differentiating programs and must begiven due respect.

The learning process that has begun and the discussions at the Shanghai Conference are abeginning, not an end. Continuous learning andthe development of networks for the exchange of ideas will be the enduring contribution of theconference by ensuring that the lessons we havelearned are built upon and translated into resultsfor accelerating growth and poverty reduction.”

21A n n u a l R e p o r t 2 0 0 4

While we are a long way from attaining theMDGs, the cases presented the hopeful messagethat successful poverty reduction programs arebeing scaled up to benefit millions of theworld’s poor. We saw proof that the developmentprocess can be advanced by bringing togetherpractitioners to learn from each other and tobuild on each other’s successes. El Salvador’sEDUCO education program has its spin-offs in

Nicaragua and Honduras; Mexico’s cash transferprogram was later adapted in Brazil; and the original microfinance successes inspired adaptation and innovation worldwide. TheGlobal Learning Process has shown that ideastravel and that scaling up is possible. Whenpractitioners learn directly from each other,we can speed up the effort to achieve povertyreduction at scale.

WBI’s demonstration of the transforming powerof capacity development has raised expectationsin the development community. By integratinginto multiyear country strategies (such asCountry Assistance Strategies) the potential toprovide not just steady assistance but timelytraining interventions, conducted by capacitydevelopment teams with close knowledge of thecountry, WBI helps multiply the developmenteffectiveness of financial investments.

It sounds simple: Be where you’re needed, andbe able to deliver in a hurry. The principle isindeed simple, but implementing it hasrequired careful adjustments and realignments.

The potential is great. Development success storiespoint to a new development model, the heart ofwhich is home-grown development plans, con-ceived and implemented with partners, such as theWorld Bank, that know the importance of coordi-nation, commitment, customization, and commu-nication. The first two elements—coordination andcommitment—ensure that development partners,lender and borrower, will aim for common goalsand stay their course. The next two—customiza-tion and communication—ensure that discretedevelopment interventions are relevant and timely.

Capacity is the fifth element. Whether individual,institutional, or social—capacity is the power

to envision and implement change, to identifyand exploit national advantages, to identifyand address weaknesses. WBI has found thatcapacity is best assessed—and mobilized—atthe country level.

WBI and World Bank Regional Operations haveselected 33 focus countries for intensive, multisectoral, capacity development activitiesbased on the degree of country ownership ofthe capacity building agenda and WBI’s abilityto deliver (or broker) programs relevant to thecountry situation. All regions are represented,as are middle-income countries and low-incomecountries under stress, where capacity buildingis a major element of reengagement strategies.

In addition, WBI continues to work with PovertyReduction Strategy Paper (PRSP) countries, for which an effective product line alreadyexisted: Regional PRSP Forums offered in partnership with the World Bank’s PovertyReduction and Economic Management (PREM)network, the Bank’s regions, and the InternationalMonetary Fund (IMF).

Country Program Briefs (CPBs), a WBI innovation,facilitate integration of capacity building activities into country-owned development plansand priorities. The CPB matches WBI’s instruments—country-specific, regional, global—with the


Developing Capacity One Country at a Time

country’s development objectives and capacityneeds, identified using an array of new diag-nostic tools developed at WBI.

The CPB defines WBI’s role in a particularcountry and aligns our programs to the client’shighest priorities, particularly important wherea current Country Assistance Strategy (CAS) orPRSP is not available for guidance. Country-based budgeting helps ensure that resourcesare available to address the capacity con-straints identified in Capacity DevelopmentNeeds Assessments (CDNAs).

As the Bank’s member countries take the leadin shaping their development plans, WBI’s rolehas become more complex, with a new premiumon flexibility and responsiveness. As adviser,analyst, broker, catalyst, convener, facilitator,innovator, trainer—in all these roles we collab-orate with our focus countries to promotecapacity development. The common element isclose attention to the specific needs of eachcountry. The results are encouraging. Considerthe following examples.

WBI’s business cycle at work in Ghana

To deliver country-specific support to itsclients, WBI prefers to begin with the CAS.Ghana’s recent CAS process began in September2003 and ended in May 2004. In the course ofconsultations it was agreed that WBI wouldplay a lead role in supporting Ghana as a

knowledge economy, a key objective of the government’s Poverty Reduction Strategy Paperas well as the CAS. WBI also would bolster thegovernment’s capacity to monitor and evaluatethe PRSP. And it would strengthen the oversight capabilities of parliament and otherconstitutionally mandated entities.

To deliver tailor-made products cost-effectivelyin situations where complex institutional con-straints are the main reason for weak capacity,a full needs assessment is necessary. This isthe case in Ghana in the local delivery ofhealth, education, and water services to thepoor. Needs assessments, using methodologiessuch as the CDNA serve a critical role in fine-tuning the CAS and providing inputs for theCountry Capacity Development Strategy (CCDS),a short paper on capacity building that WBIprepares in anticipation of the next CAS.

The CPB fleshes out a coherent WBI assistancestrategy, beginning with the medium-termobjectives set out in the CAS, and identifiesthe activities that will make up the program.

Three years ago, a client’s request for help in plugging gaps in capacity would likely havebeen addressed solely through core courses and standard seminars. Today, WBI’s array ofknowledge-delivery instruments is much morediversified. The objective is to find the best possible instruments for helping the client meetits main capacity requirements—understandingtasks and roles, mastering critical technical

“The Country Program

Brief provides an

excellent framework for

coordination between the

Africa Region and WBI to

achieve the program

described in the CAS.”

—Mats Karlsson, World Bank Country

Director for Ghana

WBI Focus Countries

Africa: Burkina Faso, Chad,Ethiopia, Ghana, Kenya,Madagascar, Nigeria,Senegal, Tanzania

Europe and Central Asia:Bosnia-Herzegovina, KyrgyzRepublic, Russia, Serbia andMontenegro, Tajikistan,Turkey

East Asia: China,Indonesia, Lao PDR,Thailand, Vietnam

Latin America and theCaribbean: Brazil, Bolivia,Guatemala, Mexico

Middle East and NorthAfrica: Arab Republic ofEgypt, Islamic Republic ofIran, Morocco, Yemen

South Asia: Afghanistan,Bangladesh, India, SriLanka, Pakistan

23A n n u a l R e p o r t 2 0 0 4

CountryAssistanceStrategy

Capacity Development Needs Assessment

Country Program BriefCountry CapacityDevelopment Strategy

skills, deepening understanding of how the taskcan best be performed—while helping to createan institutional environment that will facilitatecollective action among all development actors.

Multiyear programs leverage WBI’spresence in Bangladesh, Mexico,Brazil, and India

Policy analysis, health finance, and parliamentary oversight in BangladeshWBI has worked closely with the World Bank’steam in Bangladesh to identify sectors inwhich our comparative advantage will have aclear impact while complementing the Bank’sbroader work program in the country.

The first task to emerge was upgrading thecapacity for policy analysis of the BangladeshBank, the country’s central bank. WBI’s teamhelped the Bangladesh Bank establish a new policy analysis group with new product lines anda new human resource management framework.It also created an external network of supportfor policy analysis that includes the Bank ofKorea, the Korean Development Institute, theU.S. Federal Reserve Board, the Bank of England,the Bank of Canada, and the University ofSingapore. For this project, the WBI team mobi-lized support from the governments of Canada,Japan, and the Republic of Korea.

A second WBI multiyear program will comple-ment work being done by the World Bank andother donors in the health sector. Bangladeshiswho had participated in WBI’s health sectorreform and finance courses asked that a tailored course be designed for Bangladesh.The course is being developed in partnershipwith Bangladeshi health training institutions.

In a third program WBI will work with interna-tional organizations such as the Commonwealth

Parliamentary Association and the CanadianParliamentary Center to strengthen committeework within the Bangladesh parliament. Similarprograms are being developed for Sri Lanka and Pakistan.

Sequencing thematic programs for maximumimpact on capacity in Mexico and Brazil

WBI programs are a key part of the Bank’s partnership with MexicoBecause Mexico, like other middle-incomecountries, looks to the World Bank more foraccess to technical expertise than for financ-ing, the overall Bank strategy in the country is heavily oriented toward knowledge and analytical work. This provides an excellentopportunity for WBI to play an important role, particularly in connecting Mexican decisionmakers with global experience.

Mexico was the first country where the Bank’sprincipal planning document, normally knownas the Country Assistance Strategy, was dubbeda Country Partnership Strategy (CPS), in recog-nition of the integral involvement of the gov-ernment in its development. During FY04, WBIhad an opportunity to help shape that strategy.The CPS details WBI capacity developmentactivities as complements to the interventionsof other parts of the World Bank Group. WBIthematic staff will be part of cross-sectoral“cluster teams” established to coordinateimplementation of the CPS program. In addi-tion, WBI diagnostic tools will be used tomeasure progress in the areas of governanceand public sector reform.

One benefit of closely integrating capacitydevelopment with the overall Bank countrystrategy is the opportunity to link lending withlearning. A key feature of many of WBI’s programsin Mexico, as elsewhere, is action learning:working in teams, participants develop action


“I was delighted to learn that Bangladesh was confirmed as a WBI focus country in FY04—andeven more pleased to see the increase in activity that has followed this. WBI is now workingalongside a Bank operation to strengthen the Research Division in the Bangladesh Bank. Afterintense discussion we have agreed on two other areas in which WBI activities will be focusednext year—health and work with parliament and the media. I look forward to seeing the benefitsof this more focused and well-prioritized program.”

—Christine Wallich, World Bank Country Director for Bangladesh

plans for their country, region, or agency. Toooften lacking, however, are the institutionalmandate and funding needed to support implementation of the plans. As a result ofupfront WBI involvement, the needed supportis now being included as a component of newBank projects.

Needs assessment in Brazil brings states together A new element of WBI’s program in Brazil, long a key target country for WBI’s learningactivities, is collaboration with the WorldBank’s country team and the government inmainstreaming capacity development into operational work. The recent application of theCDNA tool to an ongoing Bank project providesa good example of this collaboration. In close partnership with the Bank’s RainforestUnit and Brazil’s Environment Ministry, WBIassessed the capacity needs of state environ-mental agencies involved in the Bank’s NaturalResources Policy Project (NRPP), a part of the Rainforest Pilot Program. The bilateral consultations soon evolved into a multilateral

dialogue to foster regional agreement on priority areas where capacity developmentwould support achievement of the NRPP objec-tives. This final phase of the CDNA processtook the form of a results-based interactiveworkshop with representatives of 18 stateinstitutions. The workshop resulted in identifi-cation of priority learning needs common to all states, specifically: conflict resolution, participatory strategic planning, forest valua-tion and sustainable production, rural propertylicensing, environmental law, territorial development, and environmental enforcementmechanisms.

The results of the workshop provide the basisfor developing a Regional CapacityDevelopment Strategy to support the NRPP dur-ing its final phase. Development will addressinstitutional deficiencies common across thestates and strengthen institutional capacity toensure environmental management in theAmazon region beyond the Rainforest PilotProgram, which ends in 2006.

25A n n u a l R e p o r t 2 0 0 4


WBI’s multiyear capacity development program in India is firmly embedded in theCountry Assistance StrategyWhile preparing the new India CAS forFY05–08, WBI and the Bank’s India CountryTeam identified several areas in which inten-sive, multiyear capacity development activitieswere needed to support the CAS objectives infour states where poverty is increasingly con-centrated and public institutions are weakest—Bihar, Jharkhand, Orissa, and Uttar Pradesh.

A program on state and local fiscal management(covering public sector governance, publicexpenditure management, fiscal responsibility,intergovernmental fiscal relations, and localgovernment organization and finance) will bedelivered in partnership with the Indian

Institute of Public Administration, NationalInstitute of Public Finance and Policy, theIndian Institute of Management in Bangalore,the Administrative Staff College of India inHyderabad, and select staff training colleges invarious states.

Through a program on urban development anational network of capacity building and learninginstitutions will offer professional certification forcity managers and other urban officials. WBI’songoing Urban Program Partnership with theAdministrative Staff College of India in Hyderabadwill be scaled up to create the network and thecertification program.

The HIV/AIDS control activity will developinstitutional capacity to prevent HIV/AIDS,

Institutional

Technical assistance for policy reform

Cross-country exchange of experience

Communication strengtheningDonor coordination

Dialogue with private sectorKnowledge managementIntellectual property

Organizational

ChampionsIdentify championsCultivate training of trainers to

strengthen local institutionalnetwork

Local institutional networkService knowledge/ learning

agendaCurriculum design and monitor-

ing and evaluation

TechnologyHardware/infrastructureInternet, digital radio,

newsletters, GDLNLink local institutions and

governments with globalcommunities of practice

Individual

Formal trainingHigher education, extended

courses, short courses, workshops, staff exchanges

Professional toolkits

On the job learningCoaching, mentoring, application

and assessment of learning,knowledge transfer

Lifelong learningDistance learning modules,

online subscriptions, profes-sional associations, seminars

Communities of practice

Building capacity at three levels in the Lao PDR

27A n n u a l R e p o r t 2 0 0 4

particularly in the less developed states. InFY04, WBI’s HIV/AIDS program trained vicechancellors from 300 Indian universities inleadership against AIDS, an event inauguratedby India’s president. Other activities strength-ened national HIV voluntary counseling andtesting services.

WBI’s Knowledge for Development Program willdiscuss the findings of its recent report on theknowledge economy in India with policymakersand representatives of the private sector andcivil society at a workshop in fall 2004. Thereport examines four related domains—the economic and institutional regime, education,innovation, and information and communicationtechnologies—and underlines the actions needed for India to transform itself into aknowledge-based economy.

Applying a new capacity develop-ment framework for World Bankactivities in the Lao PDR

The World Bank’s team in the Lao People’sDemocratic Republic began in July 2003 to artic-ulate a capacity development strategy for theupcoming CAS. The team first identified capacityconstraints at the project level, applying theresults to detect and test deficiencies in varioussectors of the Lao economy. The goal was todevelop a simple framework to be used to identifycapacity issues in all ongoing and future projects.If those issues are identified early in projectdesign, steps can be taken not only to enhanceindividuals’ skills, but to raise institutional com-petencies and thereby support sustainable projectoutcomes. The table on page 26 describes capacitydevelopment “inputs” at three levels.

To track progress and collect information forfuture improvements it is necessary to devisemeasurable capacity development indicators—such as increases in efficiency, adherence tobudgets and schedules, and evidence of sus-tainability beyond the project horizon.The new framework has been applied with suc-cess to the Lao transport sector, to local watersupply, and to public enterprise management.The next step is to scale up to the nationallevel, extending the framework to other sectors.Capacity development interventions undertakento address specific weaknesses constitute a sort of insurance policy, protecting largerinvestments and improving accountability.When capacity development is built into theCAS, that protection is extended to the nation’stop priorities.

Accountability in action—needsassessment promotes dialogue inNigeria

The CDNA has provided the basis for developinga tailored WBI program to help local communi-ties in Nigeria participate in local, state, andnational affairs—and hold accountable institu-tions in the public and private sectors.

As part of the CDNA process, WBI’s team con-sulted with World Bank staff responsible forongoing community empowerment programs inNigeria, particularly the FADAMA II andCommunity-Based Poverty Reduction Projects.In a two-day session in Abuja some 20 repre-sentatives of research and development organi-zations explained the CDNA approach and thetools and methods to be used for different constituency groups. At the end of the session,


the team selected four organizations to facili-tate the CDNA exercise in the states of Kano,Bauchi, Ekiti, and Imo.

Working closely with the selected communities,facilitators identified and engaged key stake-holder groups over a four-month period, speaking with local and state government officials, traditional leaders, community-basedorganizations, women, youth, religious leaders,teachers, artisans, business operators, andfarmers. Four state reports and a synthesiswere published at the conclusion of the needsassessment phase.

Next, the facilitating organizations organizedstakeholder dialogues in the four participatingstates. The purpose was to discuss the capacitystrengths and weaknesses identified in the CDNA,to deliberate on the existing opportunities and challenges for enhancing capacity, and toidentify follow-up actions. The results of thosedialogues will inform the Bank’s CountryCapacity Development Strategy, the forthcom-ing CAS, and the National Economic Empowermentand Development Strategy (NEEDS) initiative in Nigeria.

Participants in the stakeholder dialogues reportedthat it was the first time they had been able tointeract with senior government officials, whoresponded seriously to questions asked and insome cases participated in small group planningsessions. Participants in mixed constituencygroups agreed on the seriousness of the effort,the credibility of the findings of the CDNA, andthe strategic actions being proposed as a follow-up. Many realized that because they couldnot continuously depend on the government orthe World Bank to solve their problems, theymust work together continuously. Said one com-munity leader, “This is a great opportunity toget to know each other and begin to do thingsdifferently. A commissioner joined communitymembers in a small group and came back to thepodium saying, “I’m glad I joined the smallgroup. I learned a lot from listening to their perspectives.” A 12-minute video capturing thehighlights of the dialogues has been produced toshare the experience more widely.

Three key issues from the CDNA findingsemerged in the follow-up actions suggested atthe dialogues: the disconnect between localcommunities and government at all levels;mutual distrust between communities and localgovernment (exemplified in the frustration oftraditional leaders and exclusion of some segments of the population from planning and management roles); and the inability of communities overwhelmed by immediate survival needs to focus on bringing about positive change.

The situation calls for learning and action programs among assorted stakeholder groups invarious content areas—among them transparencyand accountability; information, communicationand advocacy; strategic thinking, planning andtracking results; civic education, politicalawareness, and participation; indigenousknowledge and experience; community organi-zation and social mobilization; and leadershipand management.

Sudan—Building Capacity in a Low-Income Country under Stress

Now in the twentieth year of civil war, Sudanhad lately been the object of guarded optimismas peace negotiations between the two principalparties to the conflict seemed to make haltingbut genuine progress. The conflict has presentedthe World Bank with political and technicalchallenges. But prior to the current humanitariancrisis with the outbreak of violence in theDarfur Region and the massive dislocation andsuffering it has caused, WBI had deployed anarray of knowledge services that went beyondtraining and capacity building as they are con-ventionally understood.

Providing services even-handedly for clients onboth sides of the civil war, as specified in theWorld Bank’s reengagement plan, has been achallenge. Using a combination of special trustfunds and Post-Conflict Fund resources, WBIhad facilitated wealth-sharing discussions andother dialogue between the warring parties,matched client priorities with donor interests,

mapped out postconflict priorities for theSouth, and offered a succession of tailoredworkshops to guide a team of northern officialsand civil servants in preparation of an InterimPoverty Reduction Strategy Paper.

WBI’s central role in the international commu-nity’s reengagement with Sudan has affirmedthe value of some promising new approaches,including pairing capacity building with otheranalytical work, designing capacity develop-ment activities around the achievement ofresults identified by the client, and using aneutral, problem-solving approach founded ontechnical knowledge as a way of breakingpolitical logjams.

The story of the past two years has been oneof gradually increasing contact with the clientsunder difficult conditions.

Accelerated implementation—theRapid Results Initiative

Too often implementation is the weakest linkin the capacity chain. The client may wellknow what to do but still not how to make ithappen. WBI offers assistance through itsRapid Results Approach, a management toolthat accelerates program implementation byfocusing on results, empowering individuals,and making them accountable for results.

Jump-starting economic recovery in KenyaIn FY04, WBI’s Implementation SupportProgram helped the Kenyan government jump-start its Economic Recovery Strategy by launching 21 Rapid Results teams in five differentministries. So far, WBI has trained more than200 senior government officials to use theapproach in their ministries. The initiative isstrengthening the government’s implementa-tion capacity and changing its culture to onebased on results.

When Kenya was identified as a WBI focuscountry the Institute already had a large programthere, but relations with the World Bank’scountry team were poor. Because there had

29A n n u a l R e p o r t 2 0 0 4

“There has been a dramatic improvement in WBI’s activities in Kenya in thepast year. Those activities are now planned together with the country team,and selected to fit in with other country team priorities. WBI has respondedrapidly to requests for specific support, and WBI specialists are members ofBank operational teams in Kenya, helping to ensure that capacity enhance-ment is built firmly into development initiatives.”

—Makhtar Diop, World Bank Country Director for Kenya


been no consultation on priorities, some ofWBI’s activities were not linked to the rest ofthe Bank’s program.

Over the past year a major effort has beenmade to change the relationship—both inNairobi and in Washington. In FY04, more than2,100 Kenyans participated in 136 separateWBI activities. WBI staff also provided sub-stantial input into the new Kenya CAS, identi-fying areas where capacity development activitieswould support the achievement of key goals.WBI staff have joined teams that are preparingand implementing World Bank operations in afree primary education project and publicadministration reform. WBI staff are bringingtheir expertise to the service of the countryteam, ensuring that a capacity building visionis brought to the development of new opera-tions and, when appropriate, organizing WBIactivities that directly complement other partsof the World Bank program.

Kenya is also the location of one of the WBIservice institution partnerships: a multiyearprogram to strengthen the Kenya RetirementBenefit Administration (page 48).

WBI’s rapid response helps Madagascar rebuild from a political crisisAfter a serious political crisis in 2002,Madagascar’s president, Marc Ravolomanana,resolved to complement needed reforms in governance and service delivery with a renewedopenness to learning from the outside world.At the request of his government and theAfrica Region of the World Bank, WBI delivereda series of custom-designed learning events forthe country’s cabinet, parliament, civil society,and private sector.

In June 2003, the first event exposed the presi-dent, cabinet, and senior officials to globalbest practices in governance and private sectordevelopment through dialogue with 15 seniorthinkers from all regions of the world. Theevent catalyzed a series of trade and gover-nance reforms and a chain of organizationaltransformation within ministries. In January2004, a follow-up cabinet retreat explored globalexperiences with citizen-based monitoring

of service delivery, instilling an orientationtoward results in government agencies, andattracting foreign private investment. Theretreat emphasized cross-ministerial dialogueand collegial decision making with an eye toimproving dialogue with non-state actors,notably at decentralized levels of government. Complementary events aimed at fostering anew culture of learning and results among par-liamentarians, private sector leaders, and civilsociety were widely publicized and well attendedby Malagasy citizens.

In its work in Madagascar, WBI provides a cus-tomized program that is integrated with otherBank lending and nonlending activities, therebycreating synergies with the operational work ofthe Bank’s country team.

Building leadership for economic reformthrough peer learning in TajikistanThe World Bank’s group for the low-incomecountries under stress (LICUS) asked WBI in late 2003 to launch a peer-to-peer leadershipprogram for senior government leaders inTajikistan. Interviews clearly confirmed thedemand for such a program, as governmentleaders have few opportunities to learn fromother practitioners how to implement reforms.Many leaders spend long days in weak organizations, working on large numbers ofsmall tasks, thus diverting attention fromstrategically important issues and leaving little time to share experience and take stock.International best practice experience is particularly relevant for Tajikistan as it emerges from its postconflict phase and begins toaddress a more traditional reform and transi-tion agenda several years after many of its neighbors.

Working with the Bank’s Country Office inTajikistan and other staff from the Europe andCentral Asia Region, WBI asked a group of formerleaders to prepare case studies on leadership.In May 2004, a group of 10 ministers, deputyministers, and heads of key government institutions in Tajikistan met with peers fromRussia, Turkey, and Latvia at the Organisationfor Economic Co-operation and Development/Turkish International Cooperation Agency

“We especially appreci-

ated the collegial

atmosphere and the

open exchange with

peers who, like us, have

first-hand experience

of being responsible for

turning political visions

into reality—something

very different from the

traditional teacher-

student approach.”

—Gulomjon Boboev,Minister of Revenues

and Duties, Tajikistan.

31A n n u a l R e p o r t 2 0 0 4

Centre in Istanbul for a three-day seminar.Financial support was provided by the CanadianInternational Development Agency and theTurkish International Cooperation Agency.

Sessions concluded with a discussion of howthe experiences shared could be applied inTajikistan. Among the topics broached werehow the parts of government should and couldwork together, the appropriate phasing ofreforms, how to deal with public informationduring reforms, the role of the donor community,and ways for senior leaders to promote privateinvestment.

Capacity building leverages lendingto Iran’s health sector

In the last two years, WBI worked with theIranian Ministry of Health and Medical Education(MOHME) and World Bank lenders to design and

deliver the Flagship Program on Health SectorReform and Sustainable Financing in Iran. Builton WBI’s state-of-the-art global and regionalHealth Flagship courses, the program supportsan existing Bank-funded health project thatincludes a capacity building component onhealth sector reform. WBI partnered with theAmerican University in Beirut (AUB) to train acore team of 65 policymakers in the health sectorin a sequence of seven intensive weeklongcourses, building consensus and instilling a com-mon language inside and outside MOHME. Aftertraining materials were customized to reflect thelessons learned in the courses, they were trans-lated into Farsi and disseminated to 2,000health workers at provincial and district levels. The objectives of the program were to enhanceIran’s national capacities to undertake healthreform; to develop a network of competenciesin health financing and economics; and tostrengthen government officials’ decision-makingskills through training and policy seminars.


Turning strategy into reality in Chad—capacity as catalyst

If development were merely about money, the Republic of Chad would recently have taken a major steptoward solving its development problems. During the past year, the newly built Chad-Cameroon pipelinestarted pumping oil out of the fields of southern Chad. An elaborate financial control mechanism was putin place to ensure that oil revenues would benefit the people.

More than resources

But despite the flow of new resources that will more than double the country’s annual budget, Chad facedproblems that money alone could not fix. The country needed a new cadre of financial control specialiststo plan, execute, and monitor the budget. It needed training institutes to produce accountants, auditors,and public finance specialists who could manage the country’s new resources. It needed a better-informedand equipped civil society that could participate in the process of managing and monitoring the country’sresources. And it needed all these things not just in the short term, but also for the long haul—to create a sustainable, competent public administration able to ensure better development outcomes.

More than training

WBI’s role in countries like Chad illustrates just how much has changed in the capacity developmentbusiness over the past few years. Rather than simply trying to train public finance specialists, accountants,or central bankers, WBI is working closely with the World Bank country team and with its clients toensure that capacity development is at the core of the development community’s work in Chad. We arefocusing our efforts on helping the country take control and ownership of a sustainable, ongoing plan to produce the kinds of institutions, organizations, and human resources that it needs to meet its devel-opment challenges.

Such work draws on a complex menu of tools and approaches, some grounded in WBI’s five decades ofexperience in training officials and decision makers. In Chad, we are helping the finance ministry and the public sector training organizations to define what kinds of knowledge are available locally, and whatkinds of expertise can be tapped from other countries. Much of this knowledge will come from Chad’sneighbors and other countries in the southern hemisphere that have already confronted many of the samechallenges. Other expertise will come in the form of technical assistance from Europe, North America, orAsia, where experience in managing natural resource-based economies will help local experts deepen theirknowledge and develop local expertise.

More than a single organization

But training and technical assistance alone are not enough. WBI’s research and country-focused work overthe past few years has led us to a broader range of interventions that concentrate on the overall environment—the policies, investments, and incentive systems needed to build local capacity and ensurethat it is efficiently deployed to meet the country’s development goals. This requires close coordinationwith World Bank operations to ensure that capacity needs are integrated into every program. It requiresclose coordination with other donors to avoid duplicating efforts or leaving major gaps. And it demandsstrong partnerships with nongovernmental organizations, training institutions, and experts from aroundthe world who can help us find the exact knowledge and information that is needed.

In the case of Chad, the World Bank’s lending program will concentrate heavily on capacity development,and WBI’s role will be to support those programs, build partnerships, deliver just-in-time training, and helpChad connect to global partners.

33A n n u a l R e p o r t 2 0 0 4

The chain of events leading to success beganseveral years ago, when senior Iranian officialsattended WBI’s Health Flagship courses. Theirrequest to customize the courses for use inIran was supported by the Bank’s HealthProject in Iran. The involvement of a strongpartner—AUB—made it possible to manage thedifficult process of design, customization, andsuccessful delivery of seven courses over theperiod of nine months.

Twinning with capacity buildinginstitutions

Through partnerships with capacity buildinginstitutions and service providers in severalfocus countries, WBI gets local help in adaptingits programs to country circumstances. Formore on these productive twinning arrange-ments, see pages 47–51.

Several of WBI’s most prominent programs areglobal in approach yet local in their impact—crossing over disciplines, development themes,and traditional boundaries. Worldwide in scope,they combine a comparative cross-country viewwith an in-depth, country-focused diagnosticapproach. They emphasize the power of data andempirical analysis for operational and capacitybuilding purposes. Armed with its powerful,practical approach, WBI has made a significantinvestment in gathering data and constructingindices on themes that lie outside the purview of official or traditional statistical gathering—themes such as knowledge, information and com-munication technology, governance, corruption,security threats, rule of law, voice, ethics, andhuman rights. WBI’s global programs—Knowledgefor Development and Governance—tackle headon the challenge of measurement in areas tradi-tionally regarded as simply unmeasurable.

The Governance Program evolved from discreteawareness-raising activities for client countrieson the challenges of bureaucratic corruption. Itis now a Bankwide program, integrated withother groups in the Bank and many externalpartners. Diagnostic tools, a key component ofthe program, measure and assess the role, causes,and effects of governance and corruption on economic and social development, thereby helpingcountries formulate appropriate action programs.The program draws on a comprehensive databank

to produce a variety of analytical and opera-tionally relevant reports that are pushing backthe frontier in this evolving policy field, and tosupport the Bank’s efforts to build governancecapacity in countries. A key output is the gener-ation of worldwide indicators that monitor theperformance of countries in various dimensionsof governance.

The Knowledge for Development Program (K4D)helps client countries assess and strengthentheir capacity to create, access, and use knowl-edge to increase economic competitiveness andto improve welfare.

In FY04 gender issues were mainstreamed in mostWBI thematic programs using specially designedlearning modules. WBI’s Corporate SocialResponsibility program has played a leading rolein engaging youth around the world by seekingtheir opinions on important development topics.

Governance—data, understanding,progress

http://www.worldbank.org/wbi/governance/

Good governance is central to the World Bank’smission of poverty alleviation. Unfortunately,despite the mounting evidence of a link betweengood governance and growth, corruption andpoor governance remained unmentionables. WBI


Global Programs, Local Impact

“Thanks to a sea change in

approach at agencies

such as the World Bank

and their embrace of the

challenge of governance,

it is now possible to

assess and discuss openly

the reality of governance

worldwide, and to apply

the results of those

assessments in concrete

ways in countries intent

on improving. While the

worldwide challenges

remain daunting, the

power of knowledge

and data offers key tools

for progress.”

—Daniel Kaufmann, Director,

Global Programs, WBI

changed all that when it began to compile itsdatasets of governance indicators, which provideda map of critical and dangerous terrain, a mapnow being used to chart the course of policychange and good government around the world.

Partnering with the rest of the World BankGroup, with outside organizations, and with manystakeholders in client countries, WBI takes anintegrated approach to capacity building, governance, and anti-corruption. WBI’s governanceand anti-corruption strategy emphasizes:n Going beyond public sector dysfunction (the

“symptom”) to assist countries in integratinginstitutional, regulatory, and economicreforms (the “fundamentals”)

n Implementing rigorous empirical diagnosticsand analysis

n Bringing about collective action, through participation and broad-based, bottom-upcoalitions

n Moving beyond conventional training toknowledge dissemination, policy advice based on the latest research and operationalfindings, and participatory and consensus-building activities.

Key components in this integrated approach are: n An analytical component that comprises three

levels of data collection and analysis for tar-geted action planning and capacity building:l A macro-level component, for an initial

vulnerability assessment based on theWorldwide Governance Indicators Database,covering about 200 countries

l A meso-level component, for a quantitativeevaluation of the business climate in morethan 80 countries using various dimensionsof governance based on a survey of morethan 10,000 firms

l A micro-level component, for action planningand specific capacity building, based onin-depth diagnostic surveys of governanceadministered to a representative sample ofpublic officials, business people, and usersof public services

n Action program formulation by country, withWBI support through its participatoryapproaches, leading to a set of learning pro-grams tailored to each action programl Presentation and broad participatory discus-

sion of a draft action program in largenational or regional workshops led by theWorld Bank’s country team, with WBI support

l Follow-up in implementation (with regions,networks), and further specialized learningprograms during implementation of theaction plan.

35A n n u a l R e p o r t 2 0 0 4

Figure A. Quality of governance as measured by the rule of law in the countries of the world, 2002

0 ± 10th

Percentile rank:

10th ± 25th

25th ± 50th

50th ± 75th

75th ± 90th

1 90th

Source: www.worldbank.org/wbi/goverance/govdata2002

Diagnostic tools for building governance capac-ity—WBI’s datasets of governance indicators If programs are to be tailored to local conditionsand challenges, it must be possible to diagnose thestrengths and weaknesses of a country’s institution-al capacity. WBI’s empirical approach to governancediagnostics—using the experience of citizens,businesspeople, and government employees—has three levels: a comparative worldwide level withcross-country benchmarks, an intermediate level focusing on business perspectives and experiences,and in-depth, country-specific manifestations.

Aggregate governance indicators paint a broadpicture—the “macro” level The construction and analysis of worldwide indicators on governance and corruption is themost highly aggregated stage of WBI’s empiricalapproach (figures A-C). WBI data make it possibleto evaluate the quality of a country’s governancealong six dimensions: (1) voice and externalaccountability; (2) political stability and lack ofviolence, crime, and terrorism; (3) governmenteffectiveness; (4) lack of regulatory burdens; (5) rule of law; and (6) control of corruption.

All are key inputs to an assessment of institu-tional capability and can be monitored overtime. Through rigorous scrutiny, these indica-tors help answer questions such as: n Is the country in a governance crisis

(red light), is it in the highly vulnerablecategory (yellow light), or is it an example to other emerging economies(green light)?

n Is the country making positive strides overtime in some governance indicators, such asrule of law, but little progress in others, suchas voice and accountability?

Multicountry surveys take the pulse of enterprises—the “meso” levelAggregate governance indicators take us onlyso far in understanding the specificity of acountry’s challenges. Multicountry enterprisesurveys allow us to disentangle some of thespecific institutional vulnerabilities of a countryby analyzing recent developments in institu-tional quality, performance, and constraints inthe public and private sectors from the perspec-tive of the firm.


Figure B. Indices of corporate and public sector ethics, 2004

Figure C. The cost of terrorism, 2004 (percentage of firms reporting a highcost of terrorism and crime)

0

20

40

60

80

100

Non-OECDEast Asia NICs

Southern Europe

G-7Nordic Countries

CGIJLEIPSEICEICELCCEIC

Source: Author's calculations based on Executive Opinion Survey 2004.

Note: CEIC– Corporate Illegal Corruption Component; CELC–C orporate Legal Corruption Component; CEI–Co rporate Ethics Index (the average of both legal and illegal corporate corruption components, CEIC and CELC); PSEI–Public Sector Ethics Index; JLEI–Judicia ry / Legal Effectiveness Index; CGI–C orporate Governance Index.

Inde

x

0

10

20

30

40

50

60

70

80

Cost of Terrorism

Organized Crime

Common Crime

State Capture Cost

OECD

Nord

ic C

ount

ries

Perc

enta

ge F

irm

s Re

port

Hig

h Co

st

G7

East

Asi

a NI

Cs

East

Asi

a De

velo

ping

Form

er S

ovie

tUn

ion

East

ern

Euro

pe

Sout

h As

ia

Latin

Amer

ica

Source: Executive Opinion Survey 2004.

Note: Survey questions were, The threat of terrorism in your country, the incidence of common crime and violence (for example, street muggings, looting of firms), organized crime (for example, mafia-oriented racketeering, extortion) in your country imposes / does not impose significant costs on business? and In your country the diversion of public funds to companies, individuals, or groups due to corruption is common / never occurs? A firm is considered to have reported high cost when it gave a rating of 1, 2, or 3 on a scale of 1 to 7.

37A n n u a l R e p o r t 2 0 0 4

These surveys permit a broad-based worldwideassessment of many traditional and nontraditionalchallenges in governance. For instance, the variance in performance across different ethicaldimensions (legal and illegal corruption, corpo-rate and public ethics, and so forth), as well asacross clusters of countries within the rich worldand between emerging economies, is noteworthy(figure B). The perspective of the firm throughthese surveys (in nontraditional areas not usuallysubject to measurement) helps us quantify thecosts of terrorism and various forms of crime andhigh-level corruption (figures C and D).

Country-specific governance and anti-corrup-tion diagnostics reveal problems in starkdetail—the “micro” levelIn-depth diagnostic tools are used to generatespecific input for a country-specific action program and policy design. Development andimplementation of such tools have been supported in many countries by the World Bankin close partnership with bilateral agencies andnongovernmental organizations. In separatesurveys, citizens (service consumers), enterprises,

and public officials are asked detailed questionsabout the types, manifestations, extent, costs,and private returns of poor governance and corruption. This wealth of information allowspolicymakers and Bank practitioners to prioritizegovernance challenges and design the mostappropriate policy.

Over the past year, the availability of in-depthcountry data has given the development com-munity a clear view of governance that leads toaction by empowering citizens, enterprises, legislators, and reformers in government. In asense, the data are like gene maps for society,showing what sets of characteristics need fixing. The fieldwork, analysis, and design ofspecific action recommendations are carried outthrough a participatory approach involving keystakeholders from government, civil society, andthe private sector. This process promotes long-term sustainability of the reform processwhile building local capacity. Reform prioritiestend to vary significantly from country to country, reinforcing both the theoretical andpractical importance of localized data.

Figure D. Comparing the extent of corruption, 2000–03(percentage of firms in five countries reportingvarious forms of corruption)

0 20 40 60 80

Public officialsreport frequent public

funds mis-management

Public officials reportfrequent purchase of positions

in their institutions

Firms report bribesused frequently in public services

Users report bribesused frequently

in public services

Firms report bribesused frequently

in public contracts

Source: Diagnostic surveys separately implemented in each country.

Note: Data is subject to a margin of error.

Peru 2001

Colombia2002

Honduras2002

Ecuador2000

Sierra Leone2003

Percent

WBI’s governance tools have been used to deviseaction plans in Albania, Bolivia, Colombia, Ghana,Honduras, Latvia, Paraguay, Peru, Romania, SierraLeone, Slovakia, and Zambia. The participatorydesign of these plans has become a channel forpromoting dialogue and local capacity in countriesfacing particularly severe governance challenges,such as Colombia and Sierra Leone. The path willnot be easy, but the WBI diagnostic process offersreasonable hope for steady progress.

Snowball effects—the cumulative impact ofthe Governance ProgramMany units throughout the World Bank Group areworking on governance and anti-corruptionactivities. Combining participatory action-orientedlearning, capacity building tools, and the powerof data, the WBI works with client countries andBank units on many of those governance projects. Using a strategic and multidisciplinaryapproach, the Governance Program Team appliesaction-learning methods to link empirical diag-nostic surveys, their practical application, collec-tive action, and prevention. The team is alsohelping countries build their own diagnosticcapabilities. Concrete results on the ground areemphasized in the program’s learning activities.This integrated approach is supported by opera-tional research and our comprehensive gover-nance databank. WBI’s indicators have definedgovernance issues in ways that help focus effortson key problems in a given country.

Finally, some recent strides have been made innew governance-related frontiers such as empiricalresearch on human rights and the rethinking ofgovernance approaches and strategies, building onthe data-based assessment of worldwide progress.The data, analyses, and reports on indicators,diagnostics and policy-assessments can be foundat: http://www.worldbank.org/wbi/governance/

Knowledge for Development (K4D)www.worldbank.org/wbi/knowledgefordevelopment

Knowledge for Development is WBI’s response tothe economic opportunities and challenges arising from the recent knowledge revolution—a revolution characterized by rapid advances ininformation and communication technologies(ICTs), biotechnology, materials engineering, and

Positive outcomes from participatoryefforts to diagnose—and cure—governance deficiencies

Local capacity development efforts promote avariety of follow-up activities. Governments areimplementing some of the policy measures identified in action plans:

n Freedom-of-information laws in Paraguay,Romania, and Slovakia

n Procurement reform in Bosnian Civil service reform in Albania and Bolivian “Zero tolerance” anti-corruption policy in

Zambian Anti-corruption and economic reforms in

Uganda

The power of WBI tools—Sierra Leone’s governance andanti-corruption assessment

The governance and anti-corruption (GAC) surveys recently completed in SierraLeone provide information on the institutional capability of the country’s regionsand on ways to obtain better performance. The data-gathering process and thesubsequent design of a draft Governance Action Plan brought together separateefforts to improve governance, creating greater awareness and support forreforms by various stakeholders.

The GAC assessment was conducted in response to a request for action on gover-nance and capacity building from the president’s office in February 2002. Thefirst step was to ensure a sustainable collaboration among local stakeholders. For this purpose, WBI and the U.K. Department for International Developmentpromoted the creation of a steering committee to implement the GAC assessmentand design a national governance strategy. The steering committee comprisedrepresentatives of key government agencies, civil society, the media, and thedonor community.

The next step was to implement three governance diagnostic surveys (with publicofficials, households, and business people) to assess the institutional weaknessesand strengths in Sierra Leone. The diagnostic surveys were completed lastFebruary by a local survey firm with the technical assistance of WBI. Surveyresults provided the steering committee with the information they needed todesign a national governance strategy.

On October 28–29, 2003, Sierra Leone’s vice president presented the Governanceand Anti-Corruption Report at a national workshop in Freetown. The outcome wassix action plans targeting the top priorities for the country.


39A n n u a l R e p o r t 2 0 0 4

other fields. This revolution manifests itself inmany ways: the links between science and tech-nology are closer; innovation is more importantfor economic growth and competitiveness; educa-tion and lifelong learning are increasingly impor-tant; and investment in R&D, software, and edu-cation have outstripped those in fixed capital.

The knowledge revolution has created worldwideconnections that enable countries to strengthentheir economic and social development throughmore efficient ways of producing and deliveringgoods and services for a greater number of people.However, it also raises the danger of growingdivides between advanced countries, which aregenerating most of the knowledge, and developingcountries, which have less-developed markets,institutions, and telecommunications infrastruc-tures, as well as fewer educated people to create,adapt, and make effective use of the rapidlygrowing stock of knowledge.

The term knowledge economy reflects the increasedimportance of knowledge for economic develop-ment. A knowledge economy is one in whichorganizations and people acquire, create, disseminate, and use knowledge more effectivelyfor greater economic and social development.The objective of the World Bank Institute’s K4Dprogram is to stimulate social and economicdevelopment in client countries by buildingtheir capacity to access and use knowledge as a basis for enhancing competitiveness andincreasing welfare.

In FY04, the program’s three main product lines—policy services and studies, learning events, andknowledge products and tools—are all gearedtoward building capacity in client countries,helping clients at all income levels to takeinformed advantage of opportunities to competeand thrive in the knowledge economy.

Policy servicesIn FY04 the K4D program continued its innova-tive policy work in a variety of client countries,including new projects:n We began work on India’s transition to the

knowledge economy and continued to workwith policymakers and think tanks in China onthe architecture and implementation of a life-long learning system in China.

n WBI’s capacity building work on the knowledgeeconomy at Morocco’s University of Al-Khawarain’sInstitute of Economic and Forecasting Studiesresulted in a national assessment, soon to bepublished by the university.

n At the request of Tunisia’s government, theK4D program is working with counterpartson the design of an Annual KnowledgeEconomy report that will detail major policymeasures related to the knowledge economy.The report is slated for dissemination at theWorld Information Society Summit inNovember 2005.

n WBI’s analysis of the knowledge economy inMexico built capacity among government andprivate sector leaders while analyzing globalbest practices. As part of the dissemination

0^KEI^2

2 ! KEI^4

4 ! KEI^6

6 ! KEI^8

8 ! KEI^10

No Data

Lowest score = 0Highest score = 10

process, a high-level seminar will be organ-ized in Monterrey later in 2004 for Mexicanleaders and practitioners from Chile, Ireland,Republic of Korea, and the United States.

n The K4D program is collaborating on aKnowledge Economy and Innovation Loancovering knowledge-economy developmentin Turkey—knowledge-economy skills, e-development, and enterprise innovation.The project is slated to go to the WorldBank’s Board in FY05.

Learning programsOver the past year K4D contributed to severalcapacity building learning events that broughttogether a variety of stakeholders from govern-ment, the private sector, and civil society to dis-cuss issues related to the knowledge economy:n Policymakers and representatives of civil soci-

ety from Benin, Mauritania, and Senegal par-ticipated in five GDLN-based policy dialoguesto discuss issues related to the major knowl-edge-economy policy planks—education,innovation, and ICT—as well as the useful-ness of the knowledge-economy concept asapplied to Africa.

n A successful workshop on innovation poli-cies and institutions, co-organized by theK4D program and Fundación Chile, broughttogether private and public sector leadersfrom Argentina, Chile, Mexico, and theRussian Federation to discuss policy issuesrelating to the institutional design of tech-nology organizations.

n The second K4D forum on Knowledge Economy,Trade, and Competitiveness, held in Marseillesin March 2004, attracted 200 participants from15 countries of the Middle East and NorthAfrica. The forum highlighted progress made byDubai, Jordan, and Tunisia on the knowledgeeconomy, as well as the experiences of selectedlocalities in the Arab Republic of Egypt, theIslamic Republic of Iran, and Morocco. A forumis planned for 2005.

To support its work with clients, K4D also developsappropriate knowledge products and tools. The2004 version of the Knowledge AssessmentMethodology (KAM, figure E) was launched duringthe year (www.worldbank.org/kam). KAM’s usefulness has been endorsed by colleagues fromacross the World Bank, as well as by participants


Figure E. Global Comparison of Preparedness for the Knowledge Economy

Source: Knowledge Assessment Methodology (KAM).

The Knowledge Economy Index (KEI) is the average of a country’s or region’s performancescores measured on twelve indicators spread across the four key pillars of the KnowledgeEconomy: Economic Incentive Regime, Education, Innovation and ICTs. The Index ranks eachcountry on a scale from 0 (poorest performers) to 10 (best).

from the Inter-American Development Bank andthe National Academy of Sciences. TheKnowledge Economy page on the DevelopmentGateway is an important source of informationfor a wide variety of clients and stakeholders (www.developmentgateway.org/knowledge).

Championing knowledge and learning—WBI’s global and regionalknowledge sharing initiatives

http://www.worldbank.org/ks/

Knowledge is not just power; it is the power toget things done without repeating the mistakesof others. Knowledge sharing at the World Bankhas evolved from an early emphasis on capturingand organizing knowledge to adapting andapplying knowledge in a way that helps WorldBank staff, clients, and partners work moreeffectively to reduce global poverty.

WBI’s global and regional knowledge sharing program is organized into three practice areas:knowledge, learning, and technology.

The Knowledge practice supports the Bank’sKnowledge Agenda by monitoring and assessingknowledge sharing across the World Bank, implementing standards across the Bank and pro-

viding a one-stop shop for information related toknowledge sharing—including best practices, toolsand techniques, and referrals to experts throughour Knowledge and Learning Advisory Service(www.worldbank.org/ks). The practice also managesB-SPAN (http://info.worldbank.org/etools/bspan), the World Bank’s internal knowledge sharing network, which produced more than 200 learningevents in FY04, and administers the DevelopmentForum, site of some 60 e-discussions in FY04(www.worldbank.org/devforum/).

The Learning practice supports the Bank’s growinglearning agenda for clients and staff, workingwith the Bank’s Learning Board and ChiefLearning Officer to improve the quality of stafflearning across the Bank. The practice providesexpert advice and guidance on pedagogicalaspects of effective learning programs; helps taskteams select the most appropriate mix of toolsand methods to adapt content to the needs ofclient countries; and disseminates best practicein learning design.

The Technology practice is developing integratedlearning- and content-management systems forcustomized learning and knowledge sharing. Atthe same time, it is redesigning WBI’s Web sites,organizing content in a library of learningobjects, and building the capacity of WBI taskteams to use e-learning effectively.

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Mainstreaming gender issues through-out WBI’s development curriculum

In 2001 the World Bank published its strategyfor correcting gender inequalities that lower theproductivity of labor and hold back economicprogress. In FY04, WBI raised the entry point forgender mainstreaming from a given activity tothe institutional level, strengthened accountabilityof WBI managers for gender mainstreaming, andprovided technical and financial support to WBIstaff. Together, these steps have enhanced gender-related content in WBI activities and are expectedto sustain and strengthen gender awareness amongWBI participants in future years. In FY04 womenaccounted for 36 percent of all WBI participants.

WBI has developed a gender mainstreamingmodule that can be adapted to different programsand regions. Several specialized modules alsohave been developed to support programs suchas trade, macroeconomics, and private-publicpartnerships. In addition, the Knowledge forDevelopment Group has developed a gender-awaremethodology for assessing the status of knowledgein a country.

WBI also piloted country-led and collaborativecountry-level programs in gender. In collabora-tion with World Bank country teams and otherdonors, WBI responded to the Russian govern-ment’s invitation to support the implementation

of its recently issued gender strategy. A compre-hensive proposal was developed and discussedwith the ministry in charge of gender, as well ascivil society members and key development partners. WBI, the Bank’s Europe and CentralAsia Region, and the government have signed amemorandum of understanding to develop anaction plan that will influence policy and institutional dimensions of gender mainstreamingat the regional and federal levels.

Developing youth leaders—a newfocus for the Corporate Governanceand Corporate Social Responsibilityprogram

Young people will provide the continuity of commitment and effort needed to achieve theMillennium Development Goals. With severalpartners, WBI’s Corporate Governance andCorporate Social Responsibility program coordi-nated a series of consultations and learningevents to capture the views of young people onpoverty alleviation. These events were aimed atpreparing young people for constructive partici-pation in the Shanghai Learning Process. Theywere conducted in coordination with theShanghai conference organizers, global youthorganizations, and teams within the World Bank.

From a pool of 6,000 young participants in the2003–04 Global Learning Process on Scaling Up

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Poverty Reduction, 15 were invited to theShanghai Conference in May. Representing theirpeers, they proved that young people canbecome important players in key areas, but theywill need to build initiatives that excite youthand dissipate apathy.

The Shanghai youth initiative was followed bytwo meetings in Moscow in June 2004, organ-ized in close cooperation with the World Bank’sMoscow office and the Global DevelopmentLearning Network (GDLN).

The first was a special youth session of aninternational conference on “CorporateGovernance and Economic Growth in Russia,”organized by the Russian National Council forCorporate Governance, together with the WorldBank and the Organisation for Economic Co-operation and Development.

The second event began a series of videocon-ferences to be held as a follow-up to theShanghai Conference. The first videoconfer-ence—“The Role of Youth in Scaling Up PovertyReduction: Follow-up to the Shanghai LearningProcess”— marked the official inauguration ofthe Moscow Distance Learning Center. It linkedyouth leaders from Russia, Moldova, and Serbia

with young members of the Bank’s staff inWashington, D.C. The objective was to sharethe experiences and lessons of the Shanghaiconference and discuss how they might helpshape the development of country-specificyouth action plans.

Youth events leading up to the Shanghai Conference

Online dialogues. In FY04 more than 3,000 young people provided input on the role of youth in achievingdevelopment goals through WBI’s web-based Corporate Social Responsibility course.

Global e-conference. Some 1,300 young people from 100 countries participated in a youth-moderated discussionentitled The Poverty Challenge in a New Millennium: Defining Roles for Youth and the Next Generation of Leaders,February 9–27, 2004.

A series of videoconferences organized with the support of GDLN in Africa, Central Asia, and Latin Americacaptured youth perspectives on key topics in poverty alleviation relevant to particular regions, such as youthas partners in development, youth employment issues, and entrepreneurship.

In 20 face-to-face dialogues involving more than 1,000 young people, WBI representatives discussed theShanghai process and the search for scalable solutions with youth in developed and developing countries.Among the countries represented were the Islamic Republic of Iran, Mexico, the Netherlands, the RussianFederation, Serbia and Montenegro, the United Kingdom, and the United States.

The series of face-to-face discussions included a full day conference at the World Bank entitled Roles for theNext Generation of Leaders in Poverty Reduction—On the Road to Shanghai on March 26, 2004.

Youth and development—topics for further investigation and action

Fighting the spread of HIV/AIDS—the role of youth and business

Transparency, accountability, and fighting corruption through the teaching of ethicsand responsible conduct

Increasing the participation of the private sector in poverty alleviation, for example, byworking with young employees in leading companies (such as CEMEX Mexico), sharingbest practices, and looking at responsible entrepreneurship

Involving youth in OECD countries in support of actions to alleviate poverty

Building opportunities for youth—access to decision makers, employment opportunities,educational opportunities, World Bank opportunities

Governance issues in business and public institutions, including higher education

Assisting children who fall through the social safety net—street children, child soldiers,child prostitutes, and those in institutions (orphanages, mental institutions, prisons)

To develop and deliver a growing array of country-specific, regional, and global programs, WBI hascompiled an unparalleled network of technicalfacilities and partner institutions around theworld. Web-based technologies not only add anew dimension to WBI’s more traditional massmedia; they also allow us to reach remote loca-tions with customized programs. Videoconferencingradically reduces the marginal cost of face-to-face meetings and seminars with participants infar-flung locations. The heart of WBI’s techno-logical powerhouse is the Global DevelopmentLearning Network, which the World Bank hasdeveloped in collaboration with a broad range of partners.

Access everywhere—the GlobalDevelopment Learning Network

The 68 affiliates of the Global DevelopmentLearning Network (www.gdln.org), located in 49different countries, offer their facilities, services,and interactive distance learning techniques tothe development community for learning eventsof all types. Tools and services include videocon-ferencing, internet access, event facilitation, andtranslation services.

The World Bank initiated GDLN in 2000, coordi-nates the network through WBI, and remains itsmajor client, staging 459 events through GDLN

in FY04—246 of which were WBI activities.Overall 858 activities were offered through GDLNin FY04, up 48 percent from FY03. The networkadded 140 new clients in FY04. Its reach isextended beyond major cities to hundreds ofsites by connections with significant in-countrynetworks in Brazil, China, Ecuador, and Japan.

Each year more and more people from differentcultural, social, and economic backgrounds, whootherwise would not have the opportunity tomeet, participate in GDLN events. Last year thenetwork was used by indigenous people inEcuador and Mexico, doctors in Ghana, andVietnam, policymakers in Japan, small-scale miners in the Kyrgyz Republic, Ghana and Canada,and economists in Karachi and Islamabad to con-nect with peers in their countries, their regions,and around the world. GDLN clients—governmentagencies, development organizations, NGOs, private businesses—have learned that workingwith GDLN not only cuts travel costs but alsoallows them to rethink their interactions, stretch-ing them across time and including groups thatotherwise might not have been included.

n UNESCO’s International Higher EducationCenter works with GDLN to bring together itsalumni—such as women engineers in devel-oping countries who otherwise would not beable to contribute to such meetings.


Extending Our Reach

n When the U.S. Bioterrorism Act went intoeffect in October 2003, with significantimplications for companies that export tothe United States, U.S. officials used GDLNto reach major suppliers in developing coun-tries to discuss the restrictions and opportu-nities of the Act. On October 31, the GDLNCenter in Vietnam hosted a videoconferenceconnecting U.S. officials in Washington withaudiences in India, Indonesia, Thailand, and Vietnam to present the new regulations,clarify questions, and discuss implicationswith participants from ministries, trade associations, and chambers of commerce and industry.

n In April 2004, doctors and medical studentsfrom Australia and Vietnam came togetherthrough GDLN to address the avian influenzaoutbreaks in Southeast Asia. Participants atthe Vietnam Development Information Centerin Hanoi and the University of Sydney dis-cussed plans to prevent future outbreaks ofthe disease, based on the present responsesin Vietnam and Thailand as well as recentactions to stop the spread of other infectiousdiseases, like Severe Acute RespiratorySyndrome (SARS).

n The Shanghai Conference on Scaling UpPoverty Reduction (May 25–27, 2004) waspreceded by a nine-month series of GDLNvideoconferences in which individuals andorganizations prepared for the conference.

n From May to July 2004, officials from thebanking and securities sectors in Bosnia-Herzegovina participated in a World Bankcourse on fighting money laundering and the financing of terrorism. A series of GDLNvideoconference sessions connected partici-pants in Sarajevo and Banja Luka, Bosnia-Herzegovina; Belgrade; Ljubljana;Washington; and Zagreb. The World Bank’stechnical assistance, delivered throughGDLN, is timely, low in cost, and extremelyeffective in helping local officials shareknowledge on how to implement internation-al standards.

n During FY04, World Bank health projects inthe Dominican Republic and Ecuador beganworking with their GDLN centers to imple-ment the projects’ capacity building compo-nents, ensuring that knowledge exchangetakes place when it is most needed. FY04 also

saw GDLN become a supporting tool for coreoperations in El Salvador and Nicaragua toconnect local project managers with eachother and with experts overseas.

The availability of GDLN’s facilities has begun tomake an impact in the way development busi-ness is conducted. Training providers have shift-ed part of their original face-to-face work toGDLN. For example WBI is now using distancelearning techniques for about 50 percent of itsoutput—up from 2 percent four years ago.Governments are using GDLN for major confer-ences and gatherings. The Ministry of Solidarityand Social Security in Côte d’Ivoire asked itslocal GDLN Center, in November 2003, to organ-ize a just-in-time workshop with major interna-tional development agencies to develop actionplans for humanitarian aid in the country. InFebruary 2004, from the Brazilian GDLN Center,President Luis Inácio Lula da Silva addressedsome 200 international parliamentarians andother participants in an international conferencein Paris on increasing transparency and account-ability in international development.

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Sharing knowledge across the WorldBank: DevForum and B-SPAN

In FY04, the Bank’s main platform for electronicdiscussions, DevForum, hosted 72 public and pri-vate e-discussions. The big news, however, camein the form of a new partnership with Dgroups, a multiagency initiative led by Canada’s Bellanet, to provide easy-to-use virtual community work-spaces for development professionals. The newDgroups platform moves DevForum beyond its e-discussion format to allow for online community building via new tools such as filesharing, member profiles, and a calendar(http://www.worldbank.org/devforum).

B-SPAN, the World Bank’s webcasting service,boosted its service quality and began new part-nerships with organizations outside the Bank thatpresent new opportunities for diversifying contentand attracting new resources. B-SPAN has rolledout a database system that enables more dynamicpresentations of content. And B-SPAN venturedinto the realm of live, public webcasts for the firsttime, in partnership with the Presidential LectureSeries. Nobel Peace Prize winner Shirin Ebadi wasthe first speaker covered, in both English and Farsi(http://www.worldbank.org/bspan).

Partnerships build reach and sharpen focus

Underpinning all of WBI’s work is its partnershipstrategy. Partnerships add significantly to WBI’sability to extend its reach to wider and morediverse audiences. They help WBI scale up byproviding and tailoring content, delivering learn-ing events, and monitoring results. And they arethe key to our ability to deliver country-focusedcapacity development programs.

WBI now has formal partnership agreements withsome 190 organizations (appendix 5), and infor-mal agreements with some 250 more. Partnerscommit to develop programs of mutual priorityand interest, and to share resources (financial,technical, and human) and risks.

Partnerships with donors help WBI meet itsgoals, providing nearly 50 percent of WBI’s budg-et in FY04. WBI has entered into multiyear fund-ing partnerships with bilateral donors—Belgium,Canada, Finland, France, Ireland, Italy, Spain,and Switzerland. Other donors—Denmark,Britain’s Department for International Develop-ment, the European Commission, Norway, andSweden—support our work through specific trustfund relationships. In addition, WBI manages the

WBI Training Grants Window of Japan’s Policyand Human Resources Development Fund and the capacity building window of the World Bank–Netherlands Partnership Program.

For WBI, dedicated multiyear partnership agree-ments ensure that financial resources providedby trust funds can be planned and disbursed inthe same manner as funds from the Bank budget.Just as important, such agreements create sub-stantial leverage. Donors increasingly partnerwith WBI in developing and delivering programs,without giving money directly to the Institute.Instead, they pay for their share of the costs ofjoint activities, or directly fund facilities that arepart of global programs or networks.

Strategic partnerships at the national level areanother important element of WBI’s partnershipapproach with key donor countries (Canada,France, Italy, the Netherlands). In these inte-grated partnerships relationships are closelycoordinated with the national donor agency, keypolicymaking bodies, universities, think tanks,and the private sector.

WBI’s partnerships support our strategic direc-tions, including alignment with Bank operationsand country focus. Partnership activities in FY04


Synergies in capacitybuilding support:the Dutch andJapanese examples

Capacity building has beena shared priority for collab-oration between the WorldBank and the NetherlandsMinistry of Foreign Affairsunder the Bank NetherlandsPartnership Program (BNPP)agreement since 2001.

In 2004 BNPP provided$6,740,000 in support of 20capacity building programsin HIV/AIDS and reproduc-tive health, trade, postcon-flict adjustment, and socialinclusion and empowermentin the poorest countries—sectors and countries of priority to the Dutch gov-ernment’s foreign aid plan.

Contributions from Japan’sPolicy and HumanResources DevelopmentFund (PHRD) play an impor-tant role in helping WBImeet its capacity develop-ment goals by supportingactivities that are designed,developed, and delivered byWBI and its partner institu-tions. PHRD places strongemphasis on collaboratingto meet mutual develop-ment objectives. In FY04PHRD-funded capacitydevelopment programstotaling $5.27 million wereimplemented with opera-tional input from across theWorld Bank.

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illustrate the benefits of pursuing shared priori-ties, and integrating capacity building activitiesinto development operations in countries. Forexample, the Swiss Agency for Development andCooperation (SDC) has agreed that, for FY04, itstrust fund contributions to WBI, previously ear-marked for global thematic programs, will befocused on cross-thematic capacity developmentefforts in countries of mutual priority—Bolivia,Burkina Faso, and Tajikistan. Other donors,including Spain and France, have also respondedfavorably to WBI’s country focus; still others(Canada) have provided support to WBI’s capacitydevelopment work in postconflict countries.

WBI is working with other units of the WorldBank to ensure that partnerships are main-streamed as a business tool. WBI’s innovativeapproaches to developing partnerships in sup-port of our programs is contributing to theBankwide partnership strategy.

Twinning with service deliveryinstitutions and capacity buildinginstitutions

Complementing our country-focused capacitybuilding agenda, WBI extends its reach by part-nering with dynamic national and local organiza-

tions in various economic sectors that have thepotential to multiply the effects of WBI’s capaci-ty development services. The goal for FY04 wasto implement pilot projects with at least fourservice-delivery institutions and four capacitybuilding institutions. That goal was actuallyexceeded with the launching of 14 pilots.Examples are provided below.

Russian business groups use WBI tools toassess capacity needs To help Russian businesses improve their com-petitive position in the marketplace and exert apositive impact on the policy and business envi-ronment, WBI has partnered with the RussianFederation’s Chamber of Commerce and Industry(RFCCI) and the Russian Union of Industrialistsand Entrepreneurs (RUIE). Capacity-needs assess-ments began in FY04. Based on the results,institution-building activities will be designed toimprove Russia’s corporate governance infra-structure. The RFCCI and the RUIE have alreadyproven their value in the Bank’s operational workin Russia.

RFCCI represents some 20,000 companies andpublic institutions—organized into 156 regionalchambers and a set of active committees—thatare working together to create a socially oriented

Twinning for institutional capacity development

Twinning is an instrument for building institutional capacity thathas been used by many international development aid organiza-tions, including the World Bank. In FY04, WBI carried out a deskreview of twinning effectiveness, which identified six distinctivefeatures of twinning arrangements:

1. An institution-to-institution relationship, based on partnershipbetween two organizations

2. Emphasis on sustainable organizational capacity building3. Long-term cooperation that continues after project completion4. Flexibility to alter the work program over time, as needed 5. Use of a mix of activities (staff exchange, placement of

experts, training events)6. Focus on individual and organizational learning

Source: Twinning as a Method for Institutional Development: A Desk Review byFumika Ouchi. WBI Evaluation Studies EG04-85 (2004).

market economy. It is playing a leading role inRussia’s preparations to join the World TradeOrganization (WTO).

Better measures, better forecasts—Goskomstat tracks poverty in the Russian FederationWBI, the Bank’s Europe and Central Asia Region,and the U.K. Department for InternationalDevelopment have joined to help the Russian gov-ernment enhance its capacity to measure, monitor,and analyze poverty in Russia in accordance withinternationally accepted methods and norms. WBIorganized a two-day seminar on poverty and socialimpact analysis (PSIA) in Moscow in May 2003. Itsobjective was to familiarize Russian officials andresearchers with the PSIA and with data require-ments for forecasting the social impact of reforms.In June 2003, WBI and the Bank’s Learning Groupfor Poverty Team staged a four-day retreat focusedon joint learning and discussion of interim find-ings and analytical papers with Russian statisti-cians and policymakers. Russian experts gatheredfor a WBI-sponsored training seminar in November2003. The two-part event began with a two-dayintroduction to SPSS and statistical data analysis.It concluded with a five-day workshop on Russia’sHBS database, with participants from Goskomstat,the International Labour Organization, and theWorld Bank.

Introducing risk-based supervision at theRetirement Benefits Authority of KenyaThe Retirement Benefits Authority (RBA) ofKenya is a new agency overseeing private pen-sion plans as well as the National Social SecurityFund. It has a leading role in the Africa PensionForum, a recently constituted initiative that is abyproduct of an earlier WBI activity. RBA has astrong team of well-trained professional staffembarked on an ambitious plan to develop anintegrated strategy of pension supervision.

However, the supervision strategy and regulatoryframework of the organization are still in the initial phase of development.

WBI is helping the RBA to design a comprehen-sive supervision strategy based on the principlesof risk-based supervision. The pilot experience, a case study in the second phase of the WorldBank’s Sub-Saharan Africa Pension Program, isdesigned to induce effects in pension institu-tions elsewhere in Africa. The RBA experiencewas presented as a case study in the SecondConference on Public Pensions Managementdelivered by WBI.

Toward better services for local water enterprises in IndonesiaPERPAMSI (Persatuan Perusahaan Air MinumIndonesia) is an association of Indonesian waterenterprises. Headquartered in Jakarta withregional offices in the 34 provinces, PERPAMSIhelps its 300 member utilities better managewater supply to urban and rural communities.The organization also assists in training itsmember utilities in dealing with local govern-ments and the public. To better carry out itsmandate, PERPAMSI has created an internaldepartment specifically focused on humanresources development.

The objectives of its partnership with WBI are tostrengthen the association’s services to the localwater enterprises in (1) institutional develop-ment, asset management, and technical services;(2) expansion of water supply and sanitationservices, including incentives for involvement ofthe private sector; (3) engagement of local gov-ernments in discussions related to water supplyand sanitation issues, including water pricingand cost recovery; and (4) implementation of thewater utilities benchmarking system recentlydeveloped with Bank assistance.


The Bank is heavily engaged in the water sectorin Indonesia—and the pilot with PERPAMSI is agood complement to the intensive work on policydialogue and benchmarking of services currentlyunder way.

Excellence in research and policy analysis atBangladesh BankWith help from WBI, the research department ofBangladesh Bank is developing and implementinga plan for organization change and skill enhance-ment to advance its goal of excellence inresearch and policy analysis. The goal of thepartnership is to improve incentives, performancemonitoring, and organizational structures withinthe department, with the ultimate objective ofenabling the department to provide better policyadvice to the Bangladesh Bank, the government,and the parliament. More on WBI’s multiyear pro-gram in Bangladesh can be found on page 24.

Training trainers to enhance municipal management in JordanJordan’s Ministry of Municipalities, Rural Affairs,and Environment (MOMRAE) requested supportfrom WBI in developing a program to traintrainers in various areas of intergovernmentalfiscal relations and local government manage-ment. Proposed activities under the partnershipinclude design and delivery of capacity develop-ment programs on intergovernmental fiscal rela-tions (design of intergovernmental transfers,measurement of vertical and horizontal imbal-ances, analysis of revenue buoyancy) and policyadvice on intergovernmental reform issues

including redesign of intergovernmental transferformulas and equalization of fiscal needs acrossmunicipalities.

As part of its effort to strengthen Jordan’smunicipal sector MOMRAE has established threetraining centers for local government officialsand started offering intensive training courses onadministrative, fiscal, technical and environmen-tal issues. In the last 12 months, they haveoffered 184 courses for more than 3,000 munici-pal employees.

The partnership between MOMRAE and WBI is anoutcome of a workshop organized by WBI andthe World Bank’s Middle East and North AfricaFinance, Private Sector, and Infrastructure Unit.

Intergovernmental fiscal design and local government management in TurkeyJoining the European Union is likely to placeheightened demands on the public administrationsystem of Turkey. To meet those demands, thenew government is taking bold steps in reform-ing the country’s public administration systemthrough decentralization of decision-makingpower and development of a modern local gov-ernment system.

The Turkish Ministry of Interior asked WBI todevelop a program of cooperation in design ofintergovernmental systems and local governmenttraining. The Ministry is especially interested inlearning more about decentralization reforms inthe European Union.

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The partnership’s work program entails review-ing the overall legal and regulatory frameworkrelevant for municipal management, evaluatingpilot municipalities and their operations withspecial emphasis on finance and revenue, anddeveloping proposals on how to improvemunicipal management. Workshops and seminarsare being organized on intergovernmental fiscal relations, the current structure of revenuesand expenditures, intergovernmental transfersystems, intergovernmental transfer formuladesign, and analysis of the proposed intergov-ernmental fiscal system. The goal is to producedraft legislation.

The partnership’s activities are one of the fivemain areas of WBI’s Country Program Brief forTurkey (December 2003).

Nurturing Burkina Faso’s regional center forsustainable development in West AfricaThe Centre de Formation Continue (CEFOC) inOuagadougou is playing a leading role in deliver-ing a joint regional learning program inFrancophone Africa with WBI. The aim of thepartnership is to help CEFOC build capacity inrural development at the institutional and policylevels and to deliver quality training in newareas outside CEFOC’s rural training mandate. Thepartnership is building CEFOC’s capacity to deliv-er distance training through GDLN and so tobecome a provider of content in environmentand sustainable development in West Africa. Thenew partnership follows on successful collabora-tions between WBI and CEFOC in recent years.

CEFOC is affiliated with two postsecondary institutions in Ouagadougou that train ruralengineers and technicians for the 14 memberstates of Western and Central Africa. In addition,the schools undertake other support activities in the area of development (http://www.eier.org/index.html).

Developing capacity for urban reform throughthe Administrative Staff College of IndiaTo facilitate the establishment of an UrbanManagement Program at the Administrative StaffCollege of India (ASCI), WBI designed and deliv-ered a series of five learning activities duringFY04 for key policymakers, decision makers, andother agents of change.

ASCI pioneered the delivery of management edu-cation to experienced professionals in India. Over50,000 executives from government and non-governmental agencies from India and overseashave taken advantage of the residential programsoffered by the college. Considering the rate andnature of India’s urbanization and the problemsfaced by Indian city managers, ASCI has indicatedits desire to develop a strong urban managementfocus and play a significant role in providingdevelopment training, research, and consultancyservices to urban local bodies and other nationaland international organizations.

The partnership with WBI has enabled ASCIto establish India’s first professional urban management program aimed specifically at senior staff of urban local governments. Itsactivities are conducted in consultation andcoordination with India’s Ministry of UrbanDevelopment and Poverty Alleviation and theUrban and Water Sector Unit of the World Bank’sSouth Asia Region.

Russian educators customize WBI core coursesto build skills in health finance in the formerSoviet UnionWBI is collaborating with the World Bank’sEurope and Central Asia (ECA) Region to developpartnerships with the Moscow Medical Academyand the Higher School of Economics to cus-tomize and deliver WBI’s core health-sectorcourse in the Russian Federation and elsewherein the former Soviet Union. The goal is toaddress a critical lack of skills in health econom-ics and health finance in the region and to sup-port ECA’s lending and learning program.

The Higher School of Economics trains profession-als in the fields of economics and public sectormanagement. It has established strong partner-ships with several western universities to retraincivil servants. The Moscow Medical Academy(MMA) offers training in healthcare managementand organization. Its Faculty of Public HealthManagement was organized in 1996 and anInstitute of Public Health and Health ServicesManagement came into being in 2001.

WBI is also collaborating with the World Bank’sEast Asia and Pacific and South Asia regions todevelop networking partnerships to customize

and deliver WBI core courses in health reformand financing and reproductive health. Partnersin South Asia include BRAC, Bangladesh (formal-ly known as Bangladesh Rural AdvancementCommittee); the Administrative Staff College ofIndia, Hyderabad; the Institute for PolicyStudies (IPS) in Colombo, Sri Lanka; and theIndia Institute of Health Management Research(IIHMR), Rajasthan. The operational arm of theWorld Bank in South Asia, which manages alarge portfolio of human development invest-ments in India, supports these partnerships.Critical to the success of Bank-financed pro-grams is the availability of skilled and knowl-edgeable country counterparts.

Vietnam’s Ho Chi Minh Political AcademyThe goal of WBI’s pilot activity with Vietnam’sHo Chi Minh Political Academy is to review thecurricula and content of existing economiccourses, advise on new programs, develop a pro-gram of leadership linked with the economicreform agenda (in the areas of economic theoryand policy, public administration and politicaleconomy), advise on modern teaching methods,improve economic library resources and adviseon electronic library options, support new pro-grams and related research, and pilot new short-term courses on economic reform.

Vietnam’s Academy of Social Sciencesprepares for accession to the WTO by building capacity in the civil serviceIn June 2003, working with the World Bank’sHanoi office and Vietnam’s Academy of SocialSciences, WBI organized a forum to discussVietnam’s readiness to join the World TradeOrganization (WTO). Upon its conclusion, PrimeMinister Phan Van Khai asked the World Bank tosupport Vietnam’s accession to the WTO. Theresponse was a wide-ranging program in whichWBI and several trust funds play important roles.The main components are:n Building research capacity to allow Vietnamese

policymakers to assess the impact of policyoptions during negotiations. Managed by WBI,this component is closely coordinated withthe Bank’s East Asia and Pacific Region andits Poverty Reduction and EconomicManagement Network.

n Outreach activities for members of theNational Assembly who will have to vote on

the implementing legislation and accessionprotocol.

n Training of officials of the Office of Govern-ment, which reviews legislation submitted tothe cabinet and other government agencies.

n Technical assistance to support the implemen-tation of the WTO single-undertaking agree-ments, including a customs reform projectthat is likely to be supported by a World Bank loan.

Media partnerships explore the devel-opmental role of the private sector

WBI’s media program, a pilot project of theinstitute’s Corporate Governance and CorporateSocial Responsibility Program, has brought newperspectives on private business to large audi-ences, particularly in transition economies.

Studio B in Serbia and MontenegroWBI has developed a partnership with Studio Bto broadcast a series of radio programs on pri-vate sector development, competition, and therole of business in society. Eleven 20–30 minutesegments were broadcast in March and April2004 in the Case B series on one of Studio B’smost popular programs. The estimated number oflisteners in the region, based on past audiences,is between one and two million.

Using background materials provided by WBI,Studio B television delivered a series of televi-sion segments in spring 2004. Topics includedthe role of business in society, the importance ofgood corporate governance, export promotion,and the role of youth in development. Thesesegments have met with positive audience reac-tions, suggesting strong interest in these issuesamong the people of Serbia.

Building capacity among journalistsWBI’s course on Corporate Social Responsibilityand Sustainable Competitiveness for journalistsand media drew 500 participants to theUniversity of Belgrade to learn how journalistscan promote more socially responsible and equi-table private sector development.

Interview on CNN Espagnol WBI’s Corporate Social Responsibility andGovernance program was featured on CNN

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Espagnol’s personal finance program, “EnEffectivo.” which draws 1–2 million people. Asix-minute interview underlined the role thatbusinesses can play in development. ModeratorAlisa Valderrama presented the comments ofyoung people from across Latin America who hadparticipated in videoconference discussionsorganized by WBI, the Young Americas BusinessTrust, GDLN, and the Organization of AmericanStates. The interview was aired four times acrossLatin America and generated high interest andconstructive feedback from viewers.

Global e-Conference on the role of media andcorporate social responsibilityTo facilitate the expansion of our media program,WBI and the World Bank’s DevCom partneredwith respected international and national organi-zations to produce a three-week global onlinediscussion on “Media and Corporate SocialResponsibility.” The discussion enjoyed the par-ticipation of 600 individuals from all continents.Findings from the program will be used to shape

the program’s media strategy for FY05.http://www.worldbank.org/wbi/corpgov/csr/econferences/mediacsr.html

Partnership with Voice of America (VOA)The Voice of America’s European Division hasagreed to produce a series of television programsbased on interviews with experts recommendedby WBI. Among the topics of mutual interest arecorporate social responsibility and poverty allevi-ation, socially responsible investing, businesstransparency against corruption, the role of busi-ness in building peace and democracy, the newrole of youth in development, and the role ofbusiness in fighting HIV/AIDS. The segments willbe broadcast once a week under the generaltheme “Business and Society.” VOA has a largeaudience share in the target areas of Serbia,Bosnia, Albania, Macedonia, and Croatia. Abroader version of the material will be translatedinto local languages and posted on the VOA andWBI websites, enabling local institutions to usethe material for related workshops and seminars.

Key challenges of FY04 were to assess progressin the complex process of capacity developmentand to evaluate the effectiveness of programsthat included diverse participants.

To meet these challenges, WBI’s InstituteEvaluation Group (IEG) moved from evaluatingsolely the effects of WBI programs on individualsto assessing their impact on organizations, insti-tutions, and countries—an undertaking that hasrequired the development of new approaches anda wider base of data. Increasingly, IEG performsevaluations in collaboration with specialists andinstitutions in focus countries and has soughtthe views of World Bank regional staff regardingoutcomes at the country level.

Always improving: the importance ofevaluation

The collection and analysis of evaluation infor-mation on WBI’s activities is vital for two rea-sons: to continuously improve WBI’s performancethrough feedback from these analyses (enhanc-ing quality) and to create transparency regardingthat performance (enhancing accountability).IEG supports accountabilities for monitoring andmeasuring results in five ways:

n Monitoring the quality, relevance, and useful-ness of learning and capacity developmentactivities through participant surveys


Measuring results and assuringquality through evaluation services,FY04

Country-focus impact evaluations were done in 12 countries—Brazil, Burkina Faso, Egypt,Guatemala, Indonesia, Kenya, Nigeria, Russia, Sri Lanka, Tajikistan, Thailand, Yemen—to estab-lish baselines.

Thematic impact evaluations were performedon 4 programs—Community Empowerment andSocial Inclusion, Poverty and Growth, SocialProtection, and City and Urban Management—to assess results and provide recommendations.

An external evaluation was carried out on WBI’sGlobal Development Learning Network to assessresults and provide recommendations.

A formative assessment was conducted on WBI'scapacity development strategy in 30 countries toprovide recommendations and help assure quality.

Quality Enhancement Reviews were done for 2learning programs—Governance and the Mediaprogram and the Flagship Global Course onHealth Sector Reform and Sustainable Financing.

Measuring Progress in Times of Change—Evaluation

n Building valid and reliable measures of learn-ing and indicators of capacity development

n Conducting independent evaluations of theimpact of thematic, sectoral, and country-focused learning programs, knowledge man-agement activities, and capacity developmentactivities through rigorous evaluationsdesigned to identify effective techniques forlearning and capacity development

n Building capacity in monitoring and evaluationn Disseminating evaluation findings through

reports, briefs, and websites.

Four sets of evaluations

Country-focus and capacity development evaluationsCountry-focus evaluations were completed for 12 WBI focus countries, providing a baselineagainst which to measure future improvementsfrom WBI’s capacity development work. Thebaseline evaluations showed that WBI’s prioreffectiveness in building participants’ knowledgeand skills, providing them with developmentstrategies, and providing them with opportunitiesfor networking was greater in lower-incomecountries (figure F). These results were discussedwith WBI’s External Advisory Council at theirmeeting in April 2004.

A formative evaluation of WBI’s capacity devel-opment (CD) strategy was completed, andresults were used to improve the quality of

WBI’s CD approaches. In FY04 WBI served moreparticipants from and delivered more activitiesto participants from the 33 CD focus countriesthan in FY02 (figure G). The increase was mostdramatic for low-income countries. Interviewswith staff from World Bank Operations indicatedthat the positive aspects of WBI’s country-focused CD strategy included concrete inputsregarding capacity development into the CountryAssistance Strategies and provision of specificlearning activities upon demand from thecountry teams.

A major review of twinning as a strategy for CD was completed to provide guidance for WBI’sThematic and Sectoral Capacity Building Institutionpilot program (see pages 47–51 for profiles ofpilot activities.)

Thematic and sectoral evaluationsIEG had previously completed evaluations of sixthematic programs in FY03. In FY04 evaluationsof four more thematic programs—CommunityEmpowerment and Social Inclusion, Poverty and Growth, Social Protection, and City andUrban Management—were initiated. Initialresults for the Poverty and Growth programshow that WBI programs had a greater impactin low-income countries than in middle-incomecountries (figure H).

Systematic internal evaluability reviews ofWBI’s 16 thematic and sectoral programs were

55A n n u a l R e p o r t 2 0 0 4

Figure F. Participants in lower-income countries rated WBI activities more positivelythan did those in middle-income countries

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also carried out to help program team leadersspecify the intended outcomes of their activi-ties and identify appropriate indicators tomeasure those outcomes.

An analytic review of the learning outcomes of45 WBI sectoral and thematic skill-buildingcourses was conducted to identify course featuresthat boost learning. Results showed that focus-ing on participants from a single country andteaching advanced topics increased averagelearning, while good instructional design andhaving participants work on real-life projectsreduced the knowledge gap among participants.

IEG also publishes a Monthly Quality Report thatprovides management with information that helpsimprove the quality of WBI activities. For exam-ple, results show that participants rated actionlearning, which comprised 68 percent of the ratedactivities, higher than non-action learning activi-ties in all but one area—the extent to which thecontent of the learning activity matched theannounced objectives (figure I).

Evaluation of the Global LearningDevelopment NetworkAfter an international competitive biddingprocess, IEG hired Macro International to evaluatethe quality and impact of programs facilitated bythe GDLN. Web-based surveys, interviews, focusgroups, and field visits were conducted in lateFY04 and results presented to WBI management.The independent evaluation focused on four areas:


Figure G. Participants from and activities in low-income focus countrieshave increased dramatically, FY02-04

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57A n n u a l R e p o r t 2 0 0 4

n Effectiveness and impact of programs offeredthrough GDLN

n Conditions leading to greater effectiveness ofdistance-learning centers

n Congruence between content and use ofGDLN, the World Bank’s corporate priorities,and the Millennium Development Goals

n Capacity development effects of GDLN.

The report makes recommendations on refiningnetwork supports to GDLN centers, assuring qual-ity in content and operations, integrating evalu-ation practices, and promoting the network bothwithin the Bank and to external partners in thedevelopment community.

Learning Board Evaluations For the World Bank’s Learning Board, IEG com-pleted impact evaluations of key high priorityprograms offered by the World Bank’s regions,networks, the Human Resources Vice Presidency,Operations Policy and Client Services, and otherunits that provide Bankwide programs. Theseprograms are designed to build staff capacityand contribute to development effectiveness; theevaluations focus on indicators of that capacity.

IEG also assessed the quality of staff learningthrough surveys of participants of a stratifiedrandom sample of 315 (15 percent) activities. A meta-analysis of the quality of FY03 stafflearning activities showed that action learningapproaches, lengthier courses, and smaller classesreceived higher ratings from participants.

Other services

IEG also developed some new evaluation servicesand expanded others:

n Online evaluation toolkits were created tomore easily measure the knowledge and skillsparticipants gain from their courses and tocapture client perceptions of the quality, rele-vance, and usefulness of activities.Information generated from these toolkitspermits comparisons among courses.

n Training in evaluation skills for clients andWorld Bank staff was expanded through part-nerships with other Bank units and externalorganizations.

n IEG’s work to help improve WBI’s programquality continued through QualityEnhancement Reviews, with panels of expertsfrom inside and outside the Bank.

n Dissemination of evaluation results andinformation on good practices continuedthrough publication of reports on the WorldBank intranet which are summarized in IEG’smonthly WBI Evaluation Briefs also availableto a wide audience through the Internet. Inaddition, IEG disseminates major evaluationfindings at brown bag lunches for staff andat professional meetings of evaluators.

Low-Income Country Middle-Income Country Action Learning Not Action Learning

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Figure H. Effectiveness and impact ofWBI activities were higher inlow-income countries than inmiddle-income countries

Figure I. Participants rate action learning higher than non-action learning

WBI’s country-focused strategy draws on theextensive knowledge resources offered by the 16 thematic learning programs described below.WBI’s thematic programs delivered 20 percentmore learning activities in FY04 than in FY03,and with fewer resources. A larger proportion of these activities were for focus countries.

Civic Engagement, Empowerment and Respectfor DiversityThe CEERD Program, built on funding from thePresident’s Contingency Fund, is a collaborationamong the World Bank’s networks and WBI todevelop new forms of country assistance, pilotthem, and support their scaling up through Banklending. It focuses on six action areas: respectfor diversity through education, community radiodevelopment, value-based participatory planning,legal services for poor groups, sustained civicengagement in local governance, and traditionalknowledge industries.

CEERD also develops good practice guides,mobilizes global communities of practice toprovide country-based analysis and advice,orchestrates South-South exchanges, and facili-tates development of national and internationalnetworks for mutual aid. Guidance notes havebeen produced in education, legal services for the poor, value-based participatory planning,and self-governance.

Priorities for the past year were to develop andprototype new practices in pilot countries inevery region, to advance South-South learningamong pilot countries, and to expand partner-ships. Pilots are underway in Afghanistan,Albania, Benin, Burkina Faso, Ecuador, India,Ghana, Indonesia, Kenya, Lao PDR, Malawi,Nigeria, Peru, Senegal, Sierra Leone, Sri Lanka,Timor Leste, República Bolivariana de Venezuela,and West Bank/Gaza. Support for the pilots isnested in Bank-financed projects, through whichit can be adapted and expanded, and which canserve as models for expanded practice throughsimilar types of lending in other countries.

During the year, CEERD’s technical partnershipsdeepened with the International ReadingAssociation, the World Association of CommunityRadio Broadcasters, and the Max Planck Institutefor Foreign and International Patent, Copyright,and Trademark law.www.worldbank.org/wbi/ceerd

Community Empowerment and Social InclusionThe Community Empowerment and SocialInclusion (CESI) program focuses on enhancingthe capacity of the poor and marginalized todrive their own development plans and helpinstitutions respond better to the needs of theseconstituents. CESI facilitates dialogue betweengovernments and citizens and builds the skills


WBI Thematic Learning Programs

and confidence of poor communities to partici-pate actively in the development process. Theprogram offers learning activities clusteredaround the three themes of empowerment, civicparticipation and governance, and social policy.Gender analysis and participatory monitoring andevaluation underpin all three themes.

“Developing Capacity to Scale Up CommunityDriven Development (CDD) in Anglophone andFrancophone Africa” is a three-year learning pro-gram to build capacity for CDD approaches inSub-Saharan Africa. The program content drawson the Africa Region’s CDD Vision: empoweringcommunities, empowering local government,realigning central government, improvingaccountability, and enhancing local capacity.With participants from 35 African countries, over800 people—including government ministers,policymakers, community activists, and represen-tatives from civil society and the private sec-tor—have taken part in program activities.www.worldbank.org/wbi/communityempowerment

EducationThe Education program contributes toenhanced educational quality, efficiency, andequity—a cornerstone for the successful pur-suit of national productivity, competitiveness,economic growth, social development, andpoverty reduction. Using face-to-face and dis-tance learning strategies, the program sharescurrent knowledge and lessons about globaleducation reform and establishes an interna-tional professional network to exchange reformexperiences in client countries. Special atten-tion is given to countries at high risk of notachieving the Millennium Development Goal ofuniversal primary completion by 2015, includingpostconflict countries. The program also provides key tools and skills to policymakersand schools to integrate information and communication technologies into national education systems as vehicles for expandingaccess and enhancing the quality of teachingand learning outcomes.

The Education program increased its number ofcourses in FY04, including e-learning and blendedlearning courses, by combining videoconferenc-ing and use of the Internet with locally facilitatedface-to-face sessions. The program has been able

to substantially extend its outreach through theuse of the Global Development Learning Networkand a network of community-based telecentersin Africa and Latin America.

In FY04 the Education program helped theAfrican Virtual University (AVU) enhance theability of African university faculty to converttheir existing residential programs into open,distance, and e-learning programs, therebyincreasing access for those unable to enter theresidential higher education system. It alsolinked with Monterrey Tech, the University ofGuatemala, and GDLN to offer a larger variety ofcourses in Latin America and the Caribbean. Aseries of workshops on national assessment ben-efited six African countries, Cambodia, andKuwait. A new distance learning tool—the“webinar”—was applied in the core course onStrategic Choices for Education Reform. www.worldbank.org/wbi/education

Environment and Natural ResourcesManagementSound policies, regulations, incentives, andimplementation for sustainable development arepromoted by strengthening institutional andindividual capacity (a) to understand linkagesamong citizens, the economy, natural resources,ecosystem services, and institutions, and (b) toaddress issues of public goods, vulnerability, sus-tainability, and equity. The Environment andNatural Resources Management Program helpsclients build environmental objectives intodevelopment and growth strategies, integrateenvironmental and natural resource issues intopoverty reduction strategies, assess environmen-tal impacts, formulate legal reforms, monitorcompliance, decentralize institutions, build con-sensus, and develop mechanisms to addressasymmetric costs, benefits, and trade-offs.

Program components include biodiversity andnatural resource conservation, carbon financeand climate change, the Clean Air Initiative,urban environmental challenges, environmentaleconomics and development, institutionalchange, environmental governance and compli-ance, and sustainability and equity strategies.

In FY04 the program supported activities of theWorld Bank’s Carbon Finance Business, which

59A n n u a l R e p o r t 2 0 0 4

brings investment to climate-friendly projects indeveloping and transitional economies. This isdone through the purchase of certified greenhousegas emission reductions from energy projects,which are then credited against domestic emis-sion-reduction obligations. WBI supported capac-ity building activities in Africa, Asia, and LatinAmerica, reaching more than 900 participants.The Carbon Finance Business group helpedorganize the June 2004 Carbon Expo, the world’sfirst trade fair and conference on emissions trad-ing and the emerging carbon market.

Environmentally sustainable development is a cor-nerstone of China’s development strategy. Giventhe environmental and social stresses that oftenaccompany rapid growth, the Chinese governmentbegan conducting environmental assessments aspart of development plans and programs. TheBank worked with China's State EnvironmentalProtection Administration and the InternationalAssociation for Impact Assessment to design andimplement a course in strategic environmentalassessment to strengthen the country's capacityto prepare environmental assessments. www.worldbank.org/wbi/sdenvmanagement

Financial Sector LearningFinancial Sector Learning helps build a firm foun-dation for a healthy and diversified financial system, ranging from sound capital markets andbanking systems to access to financial services bythe poor. Its program includes 27 learning activi-ties on banking systems, capital markets, finan-cial sector policy, housing finance, insurance and

contractual savings, rural microfinance, small andmedium enterprise finance, and payment systems.The activities are designed for financial sectorpolicymakers, regulators, private sector practi-tioners, World Bank staff, and academics; theytake the form of conferences, regional and globalworkshops, and distance learning through video-conferencing and the World Wide Web.

Enhancing financial market integrity is anotherdimension of the Financial Sector LearningProgram. The Anti-Money Laundering andCombating the Financing of Terrorism (AML/CFT)program strengthens countries’ AML/CFT regimesthrough policy discussions and training courseson the developmental effects of money launder-ing and terrorist financing, legal and regulatoryframeworks for dealing with both problems, theoperation of financial intelligence units, finan-cial sector due diligence, and interagency andinternational cooperation.

In WBI’s FY04 Global Dialogue Series, delivered viavideoconferencing, representatives from the pub-lic and private sectors in 22 countries exchangednews and views about the challenges associatedwith developing, implementing, and supervisingAML/CFT programs. A best-practices guide devel-oped from the series is in preparation.

The capacity development component of theFinancial Sector Assessment Program (FSAP)focuses on strengthening the capacity of clientcountries that have undergone the FSAP processto design, implement, monitor, and evaluate


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sound financial sector policies. Its objective isto help countries mitigate financial sector vul-nerabilities, stimulate financial sector develop-ment, and comply with relevant internationalstandards and codes.

To mitigate the severity of crises in the corpo-rate sector, the Financial Sector Learning pro-gram works with policymakers, regulators,lawyers, bankers, and specialists in corporaterestructuring to help clients improve their bank-ruptcy regimes. The ultimate goal is to protectthe flow of investment, foreign and domestic, bybetter protecting creditors’ rights.

The WBI Financial Sector Capacity EnhancementProgram together with the World Bank's FinancialSector Vice Presidency and the InternationalAssociation of Insurance Supervisors launched aproject to develop a Core Curriculum forInsurance Supervisors in July 2003 to addressthe problem of weak insurance supervision. Theproject is developing a comprehensive learningcurriculum for insurance supervisors in develop-ing and developed countries. www.financelearning.org.

Health, Nutrition, and PopulationWBI’s Health, Nutrition, and Population (HNP)Program helps countries achieve the criticalsocial goals enumerated in the MillenniumDevelopment Goals. The program complementsBank lending with learning for country clients,Bank staff, and staff from other donor agencies.Its overall objectives are to strengthen thecapacities of national institutions to design,implement, and sustain strong health, nutrition,and population strategies, with particularemphasis on improving HNP outcomes of thepoor and socially vulnerable; clarify the role ofgovernment in the health sector; ensure that theHNP sector is an engine of change and not avictim of reform; and improve dialogue betweenthe Bank and its clients on HNP issues.

Five components make up the program, the firstthree launched in 1997–98 and the last two ofmore recent origin.

n Flagship Program on Health Reform andSustainable Financing

n Achieving the Millennium Development Goal:Poverty Reduction, Reproductive Health, andHealth Sector Reform

n Achieving Poverty Reduction through Healthand Gender Actions Program

n Public Policy and the Private Health Sector inAsia: Enhancing the Contribution of PrivateService Providers to the MDGs

n Millennium Development Goals for Health,Nutrition, and Population: AcceleratingProgress.

Common to the design and delivery of each com-ponent is a global core course (offered annual-ly), regional partnering and networking arrange-ments (offering multiple local versions of thecore course material), and distance learning andknowledge dissemination.

In FY04, WBI’s HNP team delivered 20 countrylearning events featuring its core programs whiledeveloping a new generation of content, withadvanced courses on health equity andpublic/private collaboration.

Delegates from 15 French-speaking countries inSub-Saharan Africa met April 26–30 in Pariswith experts and donors’ representatives to dis-cuss how to improve access to health servicesthrough health insurance. The event concluded aseries of workshops and videoconferences onExpanding the Coverage of Health Risks, organ-ized by WBI with the Joint Africa Institute(JAI) and other multi- and bilateral partners.Since 2001, WBI and JAI have targeted partici-pants involved in developing alternative health-financing mechanisms; worked with the sameparticipants for three years to build competen-cies and networks; developed a program ofactivities incrementally in consultation with theparticipants; and involved interested develop-ment partners.

WBI and Bitran and Associates are responding to coun-try demands for training on the economic dimensionsof the health sector. In FY04, WBI and Bitran offered atwo-week course in El Salvador, with similar eventsscheduled in Honduras and Guatemala. In addition, dis-tance learning activities on targeting public subsidiesin health and improving health outcomes among thepoor have enabled the program to reach a broaderaudience.

a broader audience.www.worldbank.org/wbi/healthflagship www.worldbank.org/wbi/reprohealth/

Leadership Program on AIDSThis program supports the World Bank’s intensi-fied lending and analytical efforts related toHIV/AIDS. Its objectives are to equip participantswith the knowledge, skills, and tools to design,implement, monitor, and evaluate an effectivemultisectoral AIDS response. The program is builton the three action areas of all AIDS interventionprograms: prevention, surveillance, and care.Activities are grouped under four points:

n Understanding and recognizing the complexi-ties of the dynamics of AIDS and the severityof its impact on development goals

n Influencing individual and collective behaviorthrough effective communication and socialcohesion strategies

n Building human and institutional capacity andmodalities for prioritization, evaluating theimpact of interventions, and scaling up suc-cessful responses

n Strengthening capacity to monitor and evalu-ate the impact of interventions.

FY04 programs focused on capacity building andimproving the leadership of AIDS projects. TheLeadership Program on AIDS complemented Bank

operations in India, Nepal, and Nigeria by build-ing local capacity to implement projects fundedby Bank loans. It also promoted leadership com-petence in different sectors to improve AIDSresponse at the city, local government andmunicipal level. Training events to build localcapacity were conducted in direct support ofnational HIV/AIDS programs in client countries.Other activities were targeted at achieving agender balance and engaging youth in leadershipfor AIDS response.

The Leadership Program on AIDS involved peo-ple around the world in the fight against AIDS.In Ghana, a workshop for faith-based organiza-tions and national AIDS programs in WestAfrica was cosponsored with ACT Africa and theGlobal HIV/AIDS Program. In Madagascar andKenya, videoconferences coached groups inAfrica on how to conduct an assessment oftheir AIDS response. In India, two projectsfocused on youth leadership on AIDS (deliveredto vice chancellors of 300 Indian universities)and on voluntary counseling and testing services (involving directors of 740 counselingand testing centers). An e-discussion forum to help scale up VCT services attracted 750participants.www.worldbank.org/wbi/aidsleadership

Poverty and Growth The Poverty and Growth Program (PGP) enhancesthe capacity of poor countries to design, imple-ment, monitor, and evaluate effective growth andpoverty reduction strategies through a comprehen-sive package of knowledge products. Customizedmedium-term “country learning programs” targetstakeholders involved in the design and implemen-tation of poverty reduction strategies.

PGP represents a deepening and broadening ofthe Attacking Poverty Program, with the aim ofaccelerating poverty reduction in both PRSP andnon-PRSP developing countries. In addition tocontinued work on poverty analysis, povertydata, PRSP design and implementation, and skillsdevelopment in macroeconomics and policyassessment, PGP now encapsulates newer areasof focus, such as pro-poor growth, poverty andsocial impact analysis, and strengthening oflocal institutions.


To ensure that activities are tailored to countrycircumstances, PGP works with local PRSP teams,local training centers, the Bank’s country teamsand regional poverty coordinators, and numerousregional and global institutions involved inpoverty data generation, analysis, monitoring,and evaluation. To strengthen in-country capaci-ty to develop and use local knowledge for policydesign and implementation, PGP partners withlocal think tanks, research institutes, and univer-sities in the design and delivery of learningactivities. PGP also seeks to develop support sys-tems for such centers by encouraging the cre-ation of communities of practice, linking expertbodies, both within and across regions, andtwinning institutions.

In FY04, PGP worked with parliamentarians ofcountries around the world to improve their abil-ity to contribute to poverty reduction, notablythrough effective oversight of programs. At theregional level, PGP organized the RegionalSeminar for Poverty Analysis and Data Initiativein Jakarta, Indonesia on June 14–16, 2004. Theseminar was attended by country teams fromCambodia, China, Indonesia, Lao PDR, Malaysia,Mongolia, Papua New Guinea, Philippines,Thailand, Timor Leste, and Vietnam. The twin fociof the seminar were pro-poor service delivery inhealth and education and country needs forcapacity building in poverty measurement anddiagnostics, poverty monitoring and evaluation,and data generation.

At the country level, PGP worked with the WorldBank’s Latin America and Caribbean region andMexico’s Ministry of Social Development to deliv-er a colloquium on Impact Evaluation of PovertyReduction Programs. The event included a half-day panel discussion of the benefits of evalua-tions for members of congress, officials from lineministries, and civil society representatives. The

panel discussion was followed by a technicalworkshop and country case studies.www.worldbank.org/wbi/attackingpoverty

Private Sector DevelopmentThe Private Sector Development program is madeup of the Corporate Governance and CorporateSocial Responsibility (CSR) program and theInvestment Climate program. The first addressesthe issue of the new role of business in societyand how business can contribute to sustainableand more equitable development. At the countrylevel, this means designing and implementingpolicies to build a hospitable environment for sus-tainable private sector development and enablingcompanies to develop corporate governance, CSR,and business ethics policies for competitiveadvantage and social benefit. Working closely withWorld Bank Operations, the program assists com-panies, governments, civil society, business asso-ciations, and future business leaders in buildingcoalitions for sustainable development.

The Investment Climate Program was launched in2003 by WBI and the World Bank’s Private SectorDevelopment Vice Presidency. Its objectives areto familiarize clients and World Bank staff withthe importance of investment climate for growthand poverty reduction and with the methodolo-gies used to assess a country’s investment cli-mate; promote new thinking, share knowledge,and disseminate best practices on investment cli-mate issues; train researchers in client countriesto build local capacity for policy research; andprovide direct support to World Bank staff andclient countries to ensure that diagnostics, policyadvice, and training translate into concrete, tan-gible results for clients.

Over the course of FY04, the Investment ClimateProgram produced 25 country-focused workshops(2,699 participant training days), as well as 12

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seminars and 4 workshops for Bank staff. A specialfocus of many activities was the climate for smalland medium enterprise development in Africa, EastAsia, Europe and Central Asia, and South Asia.

The Corporate Governance and CSR program andits partners continued to develop global e-con-ferences on topics ranging from the impact ofmedia on developing corporate responsibility toyouth actions for sustainable development. InFY04, some 3,000 participants from more than100 countries participated in these e-confer-ences, which were scheduled in advance ofmajor conferences to enable wider participationand to provide timely input. For example, a two-week e-conference on Implementing theMonterrey Consensus: Governance Roles ofPublic, Private, and Advocacy Stakeholders pre-ceded the High-Level Dialogue on Financing forDevelopment in New York, in the course ofwhich James Wolfensohn addressed the U.N.General Assembly, the first World Bank presidentever to have done so.

The program also worked with the Zicklin Centerfor Business Ethics Research at the WhartonSchool and the International Center for CorporateAccountability to host the first international con-ference on Voluntary Codes of Conduct forMultinational Corporations: Promises andChallenges. The conference brought together 400global practitioners and experts to tackle the com-plex issues of global business practices, the rela-tive merits of voluntary codes and regulation, andtheir role in building sustainable development. www.worldbank.org/wbi/corpgov

Public-Private Partnerships in InfrastructureThe Public Private Partnerships in Infrastructure(PPPI) program responds to the emergence of anew paradigm—the shift from the public to theprivate sector in provision and financing of infra-structure services. Client countries are faced witha host of issues in responding to this new chal-lenge—among them privatization of utilities inthe power, telecom, and transport sectors; inno-vative financing structures; new risk-managementstrategies and instruments; legal issues in con-tract design, concession award, and negotiation;and international financing opportunities.

Private operators need to be confident that they

will receive a fair return on their investment,while consumers, including the poor, need toknow that they will have access to quality serv-ices at affordable rates. The PPPI programaddresses these issues, paying particular atten-tion to regulatory, environmental, and socialaspects. It is intended to impart skills throughregional and national training and policy servicesfor policy makers, regulatory and competitionauthorities, and private sector representatives.

PPPI focus-country activities in FY04 included aworkshop on Access Pricing for Competition inthe Telecoms sector for the countries of EasternEurope and Central Asia, delivered in collabora-tion with the Turkish TelecommunicationsRegulatory Agency, and a seminar on Public-Private Partnerships and Regulation in Transportin Cape Town, South Africa, an event organizedin cooperation with the Joint Africa Instituteand the Development Bank of Southern Africa.

The Experience of Latin America in InfrastructureSector Reform: Lessons for India was a knowl-edge sharing event organized in collaborationwith the World Bank office in New Delhi, theSouth Asia Energy and Infrastructure SectorUnit, and the Centre for Infrastructure andRegulation at the National Council of AppliedEconomic Research in New Delhi. www.worldbank.org/wbi/regulation/

Public Sector GovernanceA public sector that delivers quality public servicesand fosters private market-led growth while man-aging fiscal resources prudently is considered criti-cal to the World Bank’s mission of poverty allevia-tion. WBI’s Public Sector Governance (PSG) pro-gram advances those objectives by strengtheningresponsiveness (matching public services with citi-zens’ preferences), responsibility (efficiency andequity in service provision without undue fiscaland social risk), and accountability in public gov-ernance in developing countries. Improvement inpublic governance is achieved by building consen-sus and coalitions for reform through local,national, regional, as well as global dialogues fos-tered by learning programs, networking, actionplanning, technical assistance, and support forWorld Bank Operations on principles and betterpractices in public sector management. Those bet-ter practices include protection of property rights

65A n n u a l R e p o r t 2 0 0 4

and creation of an enabling environment for pri-vate sector development.

The PSG program has two broad themes: publicsector management (principles and practices offiscal management by various levels of govern-ment, exercise of fiscal powers, regulatoryresponsibilities, intergovernmental finance andpolicy coordination, budgeting, debt manage-ment, public administration and financial man-agement, and service delivery) and accountabilityin governance (protecting the public interest,public integrity, safeguards against interest-group capture, parliamentary oversight, legalframework, and mechanisms for public financialaccountability and integrity).

In FY04, WBI partnered with the government ofTurkey to develop and implement a program tomodernize the local government sector. TheZambia Youth for Good Governance project isincreasing the knowledge, capacity, and abilitiesof youth, teaching them to play a critical role infighting corruption and promoting democraticgovernance; anti-corruption clubs have beenformed in schools and universities. With WBI’shelp the central bank of Bangladesh is buildingexcellence in policy analysis by reforming itshuman resource management framework, intro-ducing new incentives and accountability mecha-nisms, and connecting staff to internal andexternal professional networks.www.worldbank.org/wbi/governancewww.worldbank.org/wbi/publicfinancewww.decentralization.cc

Rural Poverty and DevelopmentThe Rural Poverty and Development (RPD) pro-gram promotes knowledge and learning in thecore elements of the World Bank’s rural strategy:crafting efficient and pro-poor policies and insti-tutions; facilitating broadly based rural economicgrowth; improving access to and management ofnatural, physical, and human assets; and reduc-ing risk and vulnerability for the rural poor. RPDstimulates policy dialogue and disseminates bestpractices on alleviating rural poverty, improvingrural services, food security and agriculturalgrowth, and land policy and administration.

The program develops partnerships with countryinstitutions to extend the reach of knowledge

dissemination at the local and national levels. Itis twinning with CEFOC (Centre de FormationContinue) in Burkina Faso to meet the capacity-development needs of rural development stake-holders in West Africa. The partners are improv-ing internal management systems and expandingthe thematic coverage of CEFOC offerings, withnew themes like market development and sus-tainable agriculture.

Another type of partnership brought RPDtogether with the German Technical Cooperationagency (GTZ). To respond to client needs in Asia,WBI and GTZ jointly designed and delivered aregional course on land policies through theGlobal Development Learning Network. The coursecombined the policy experience of the Bank withGTZ's local expertise, especially in Cambodia, SriLanka, and Timor Leste. Similarly, in China, thepartnership has led to the establishment of alearning initiative on sustainable agriculture insupport of the Ministry of Agriculture’s effort topromote environment-friendly standards for theagriculture sector across the country.www.worldbank.org/wbi/sdruralpoverty

Social Protection and Risk ManagementThe Social Protection and Risk Management pro-gram supports the World Bank’s mission to pro-vide security, reduce vulnerability, and eradicateextreme poverty. It offers action-oriented andteam-based learning initiatives for Bank staffand their counterparts in client countries in thefollowing areas: social safety nets; children andyouth and public policy; labor market policies;and pension reforms, social risk management,and vulnerability assessments; and social sectorexpenditure and financing reviews.

The process of embedding social protection intothe consciousness of client countries and theBank continued during FY04. The SocialProtection Cluster brought together decisionmakers and technical staff from client countriesand their counterparts from Bank Operations todiscuss ways to strengthen the social protectionagenda in participating countries. Along withfield visits to projects, the mainstreaming ofsocial protection at the strategic and policy level(PRSP and CAS) were reviewed and discussed.Presentations by Bank staff on the fundamentalsof social protection were well received by coun-


try representatives. Other presentations on riskand vulnerability assessment, emerging instru-ments such as conditional cash transfers andweather-based insurance, vulnerable children, andthe elderly stimulated participants to review theircountry plans and strategize on the way forward. www.worldbank.org/wbi/socialprotection

TradeIn the spirit of WBI’s new focus on country pro-grams, the trade group has devoted considerablesupport to Vietnam as it negotiates accession tothe World Trade Organization. Workshops for vari-ous stakeholders have built political commitmentamong policymakers and parliamentarians whileimproving understanding of trade issues in theprivate sector and civil society. WBI has builtthe analytical capacity of Vietnamese policy-makers and trade specialists by linking nationalresearchers at the Institute of Economics withforeign experts. This has helped Vietnameseofficials understand when further liberalizationmay be in their national economic interest. Thetrade group’s work has been carried out inclose collaboration with the World Bank countryteam, which sees WTO accession as a criticalentry point for a series of second-generationeconomic reforms in Vietnam.

Trade in services as covered by the GeneralAgreement on Trade in Services is one of themost problematic dimensions of the DohaDevelopment Round negotiations at the WTO. Itincludes a wide range of very different sectorsbut remains poorly understood by trade nego-tiators and analysts alike. Despite need, train-ing in this area is sorely lacking. Consequently,there was great demand for the trade group’sglobal flagship course on trade in services, deliv-ered with the World Bank’s research departmentand debuted in April 2004. WBI is following upwith programs to build research capacity amongcore course participants from the ASEAN coun-tries, Sub-Saharan Africa, and the Middle East.www.worldbank.org/wbi/trade

Urban and City ManagementThe objective of the Urban and City Managementprogram is to improve the quality of professionalservice in key management posts in citiesthroughout the world. With decentralization,democratization, and globalization, cities now

have more decisions to make, serve growingnumbers of the urban poor, and have a vastlymore open political and economic system inwhich to operate. The program pursues its goalsthrough country-focused partnerships with inter-national organizations, local institutions, andnational and regional intermediaries to facilitatethe establishment of an infrastructure for urbanlearning and knowledge exchange. The programfocuses on three major groups: city officials(including elected office holders and posts ofconfidence), national and regional officials inministries and members of legislative bodies,lawmakers and heads of committees shapingurban policy and the regulatory environment forcities, and the organizations of local govern-ments, universities, and research organizationsthat have a capacity to strengthen city andregional authorities.

In FY04, the program completed the second yearof its strategy to delegate program responsibilityto institutions in client countries and move theplane of policy dialogue upward to help clientsmatch expectations and capabilities about therole of cities in national development. The strat-egy aims to increase effectiveness by reachingmore, and higher-level, participants. Over thepast three years, the program has nearly quadru-pled its reach, helping nations and cities achievebetter urban management by raising standardsfor city performance and building local capacityto train to national standards.

The program’s core content covers municipalfinance, municipal strategic planning, land andhousing, municipal services (notably urban trans-port), solid waste management, urban poverty,and slum upgrading, with new modules on safecities, hazard risk management, and universaldesign for the disabled. (WBI was the first unitin the Bank to mainstream this important topic,recognizing that more than 40 countries havebeen visited by war and armed conflict.) Contentis delivered through 30 customizable face-to-face and distance learning courses; city visits forobserving best practices first hand; and North-South city pairing.

Meanwhile, the program is reaching a wider audi-ence through books and monthly articles inMetro International Press, a newspaper that

reaches more than 10 million readers. www.worldbank.org/wbi/urban www.worldbank.org/wbi/urban/globalmetrocitizen.htm

WaterThe Water program is an effective partner forlearning and capacity building on water issues inclient countries. Its objective is to help achievethe relevant indicators of the MillenniumDevelopment Goals. The program addresses twomain themes: improvement of water supply andsanitation services for the poor, and integratedwater-resource management.

The program helps develop client skills andstrengthen institutions by implementing learningactivities on targeted aspects of water manage-ment and extending the program’s reach throughdistance learning technology and the resourcesof WBI’s partners.

Water sector reform—to improve water manage-ment and provide better water and sanitationservices to the poor—is an integral element ofthe World Bank’s strategy in Indonesia. WBI'sWater Program has launched a three-year twin-ning arrangement with the IndonesianAssociation of Water Utilities (PERPAMSI) tobuild PERPAMSI’s capacity to deliver services toits member water utilities. The partnership isaligned with lending operations designed tostrengthen public utilities and local services aswell as promote sustainable water use. The ini-tiative supports the extensive capacity buildingprogram envisaged in the Bank’s lending programin the water sector in Indonesia.www.worldbank.org/wbi/water

67A n n u a l R e p o r t 2 0 0 4

69A n n u a l R e p o r t 2 0 0 4

1 Budget for FY03 and FY04 70

2 World Bank Institute Management 71

3 Thematic and Regional Distribution of Programs, FY03 and FY04 72

4 Focus Countries by Region 73

5 WBI Partners 74

6 Scholarships and Fellowships Program 80

7 Publications 82

Appendixes


Budget for FY03 and FY04 (US$ millions)1

Sources of Funds FY03 FY04

Administrative Budget 58.8 67.2

Donor Funding 14.0 16.4

Subtotal 72.8 83.6

Japan/World Bank Graduate Scholarship Fund 8.5 13.8

Total Sources 81.3 97.4

Uses of Funds

Staff Learning 3.7 3.9

Client Learning & Capacity Development 69.1 79.7

Subtotal 72.8 83.6

Japan/World Bank Graduate Scholarship Fund 8.5 13.8

Total Uses 81.3 97.4

AFR Africa Region

EAP East Asia & Pacific Region

ECA Europe & Central Asia Region

LAC Latin America & Caribbean Region

MENA Middle East & North Africa Region

SAR South Asia Region

71A n n u a l R e p o r t 2 0 0 4

2World Bank Institute Management

Vice President

Frannie A. Léautier

Manager, Partnerships

Kenneth King

Director, Operations

M. Ziad Alahdad

Human Resources

Kiron Bhandari

Michelede Nevers

Director,

Regional Knowledge

& Learning:

AFR & LAC

Director,

Regional Knowledge

& Learning:

ECA & EAP

MichaelSarris

Director,

Global Programs

& Governance

MonikaWeber-Fahr

Director,

Sector Thematic

Programs

Manager,

Global Development

Learning Network &

Multimedia Center

RubenLamdany

UriDadushDirector,

Trade

MarlaineLockheed

Director,

Staff Learning

(HRS)

Manager,

Institute

Evaluation

Group

PhyllisPomerantz

KabirAhmedChief

Adminstrative

Officer

Manager,

Knowlege &

Operational Services

Bruno Laporte

Communications

Sunetra Puri

DariusMansDirector,

Regional Knowledge

& Learning:

SAR & MENA

Scholarships

Abdul Al-Mashat

Knowledge forDevelopment

DanielKaufmann

Sector Manager,

Poverty Reduction &

Economic Management

Roumeen Islam

Sector Manager,Environmentally &Socially SustainableDevelopment

Laura Tlaiye

Sector Manager,

Finance & Private

Sector Development

Alex Fleming

Sector Manager,

Human Development

Egbe Osifo-Dawodu

Carl Dahlman


Thematic and Regional Distribution of Programs, FY02–FY04

Other*

Poverty Reduction & Economic Management

Human Development

Governance, Regulation, Finance & Private Sector Development

Environment & Sustainable Development

Worldwide

South Asia

Middle East & North Africa

Latin American & Caribbean

Europe & Central Asia

East Asia & Pacific

Africa

Other*

Poverty Reduction & Econ

Human Development

Governance, Regulation,

Environment & Sustainabl

Worldwide

South Asia

Middle East & North Africa

Latin American & Caribb

Europe & Central Asia

East Asia & Pacific

Africa

Offerings FY02 FY03 FY04

Client 560 680 907

Staff 0 35 109

Total 560 715 1,016

Participants (thousands)

Client 48.1 55.7 74.4

Staff 0 2.7 4.1

Total 48.1 58.4 78.5

Training Days (thousands)

Client 214.1 237.2 293.2

Staff 0 0.8 1.0

Total 214.1 238.0 294.2

* Other includes Gender, Knowledge for Development, Knowledge & Learning, Regional CapacityDevelopment, Institute Evaluation Group, and Moscow Office.

Client Participants by Region FY04(percentage of total)

Training Days by Theme FY04 (percentage of total)

3

Poverty Reduction &Economic Management

26%

Other*4%

Environment & Sustainable Development25%

Human Development19%

Worldwide12%

Africa22%

East Asia & Pacific17%

Europe & Central Asia14%

Latin American &Caribbean

18%

South Asia12%

Middle East &North Africa

5%Governance, Regulation, Finance & Private Sector Development26%

6 countries

Focus Countries by Region

73A n n u a l R e p o r t 2 0 0 4

South Asia Afghanistan

Bangladesh

India

Pakistan

Sri Lanka

Africa Burkina Faso

Chad

Ethiopia

Ghana

Kenya

Madagascar

Nigeria

Senegal

Tanzania

East Asia and the Pacific China

Indonesia

Lao PDR

Thailand

VietnamLatin America and the CaribbeanBolivia

Brazil

Guatemala

México

Middle East and North Africa Arab Republic of Egypt

Islamic Republic of Iran

Morocco

Republic of Yemen

33 Countries in Total

Europe and Central Asia Bosnia-Herzegovina

Kyrgyz Republic

Russian Federation

Serbia and Montenegro

Tajikistan

Turkey

4

4 countries

5 countries

5 countries

4 countries

9 countries

World Bank Institute Partners


Albania Partners Albania, Center for Change and Conflict Management (PA)

Argentina Center for Financial StabilityFundación Ambiente y Recursos Naturales (FARN)

Austria Austrian Development Agency (ADA)Joint Vienna Institute (JVI)

Azerbaijan Save the Children Federation

Bangladesh Bangladesh Bank

Belarus Ministry of Education, National Institute for Education

Belgium Directorate General for Development Cooperation (DGDC)

Benin Center for Training and Research on Population (CEFORP)

Bolivia Universidad Católica Boliviana

Brazil Escola de Administração Fazendária (ESAF)A Escola de Governo da Fundação Joao PinheiroFederal University of BahiaFederal University of Rio de Janeiro (UFRJ)Ministry of Agrarian Development (MDA) acting through its National Council for

the Sustainable Development for Agriculture (CONDRAF)

Bulgaria National Association of Municipalities

Burkina Faso Centre de Formation Continue du Groupe EIER-ETSHER (CEFOC)

Cambodia Economics and Finance Institute

Cameroon University of Yaoundé II

Canada Canadian International Development AgencyInternational Development Research Centre (IDRC) acting through the Secretariat

for Institutional Support for Economic Research in Africa (SISERA)Parliamentary CentreRadio Canada International (RCI)

Chile Bitran y Asociados (ByA)Centro de Estudios de Justicia de Las Américas (CEJA)Instituto Latinoamericano y del Caribe de Planificación Económica y Social (ILPES)

Country Partner Organization*

5

75A n n u a l R e p o r t 2 0 0 4

China Central Agricultural Cadres Education and Training Center, Ministry of AgricultureChina National School of Administration (CNSA), Department of Public ManagementDepartment of Research, Education, and Rural Environment, Ministry of AgricultureDepartment of Science, Technology, Education, and Rural Environment, Ministry of AgricultureChina Health Economics Institute (HEI)Gansu Agricultural University (GAU)The National Development and Reform Commission (NDRC Training Center)State Environmental Protection Administration of China (SEPA) acting through

its Foreign Economic Cooperation Office (FECO)The State Council Leading Group, Office of Poverty Alleviation and Development (LGOPR)Tsinghua University

Côte d’Ivoire University of Cocody

Denmark Ministry of Foreign Affairs

Egypt, American University of Cairo (AUC) and SPAAC/HECArab Rep. of Association for the Protection of the Environment (APE)

Ministry of International Cooperation (MOIC), Regional Information Technology and Software Engineering Center (RITSEC)

El Salvador Universidad Centroamericana José Simeón Cañas

Finland Finland Ministry of Foreign Affairs

France Agence Intergouvernementale de la FrancophonieCentre International de Recherche Agronomique pour le Développement (CIRAD) acting

through its TERA departmentEduFranceMinistry of Foreign Affairs Renault

Georgia Georgian Institute of Public AffairsPartnership for Social Initiatives (PSI)

Germany Daimler ChryslerDeutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbHInWent Capacity Building International Germany (formerly German Foundation for

International Development) acting through its Center for Economic and Social Development (ZWS)

Ghana African Center for Human Development (ACHD)University of Ghana

Guatemala Universidad Rafael Landivar

Honduras Colegio Hondureño de Economistas

Hungary Central European University (CEU)Health Services Management Training Center, Semmelweis UniversityMetropolitan Research InstituteOpen Society Institute (OSI)

Country Partner Organization


India Administrative Staff College of India (ASCI)The Energy and Resource Institute (TERI)Indian Association of Medical Microbiologists (IAMM), MumbaiInstitute of Social Sciences (ISS), New Delhi

Indonesia International Society for Improving Training Quality (isitQ)Persatuan Perusahann Air Minum di Seluruh Indonesia (PERPAMSI)University of Surabaya (Ubaya)

Ireland Development Cooperation Ireland (DCI)

Israel The Government of the State of Israel, acting through its Center for International Cooperation (MASHAV)

Italy Chamber of Commerce of Milan/Promos (CCMP)Cittadinanzattiva, Active Citizenship NetworkGlobal Metro City, The Glocal ForumThe Glocal ForumInternational Development Law Organization (IDLO), RomeSACE S.p.AMinistry of Economy and FinanceMinistry of Foreign AffairsMinistry of Finance

Japan Foundation for Advanced Studies on International Development (FASID)National Graduate Institute for Policy Studies (GRIPS)Japan International Cooperation Agency (JICA)Keio UniversityUniversity of TsukubaYokohama National University

Jordan Cities and Villages Development Bank of the Ministry of Municipalities, Rural Affairs, and Environment

Kazakhstan Zhalgas Counterpart Association of Non-Profit Legal Entities

Kenya African Economic Research Consortium (AERC)African Population Advisory Council (APAC)Retirement Benefits Authority of Kenya

Korea, Korean Development Institute (KDI)Rep. of Korean Institute of Public Finance

Korea National Statistics OfficeMaeil Business Newspaper

Kuwait Arab Planning Institute (API)

Kyrgyz Counterpart SherikteshRepublic

Lebanon American University of BeirutInstitute of Finance


77A n n u a l R e p o r t 2 0 0 4

Macedonia Foundation Open Society Institute, Macedonia (FOSIM)

Malaysia University Sains Malaysia (USM)

Mauritius Ministry of Finance

Mexico Centro Interdisciplinario de Biodiversidad y Ambiente Fundación Mexicana para la Salud, A.C. (FUNSALUD)

Mongolia Mongolian University of Science and Technology (MUST)

Netherlands Ministry of Foreign Affairs

Nicaragua Universidad Centroamericana Nicaragua (UCA)

Nigeria Intellfit African Training Center

Norway Ministry of Foreign AffairsNorwegian Agency for Development Cooperation (NORAD)

Panama City of Knowledge Foundation

Paraguay Centro de Análisis y Difusión de Economía Paraguaya (CADEP)

Peru Pontificia Universidad Católica del Perú (PUCP)

Philippines Asian Institute of Management (AIM)Ateneo School of GovernmentInstitute of Corporate Directors (ICD)Institute of Solidarity in Asia (ISA)

Portugal Institute of Hygiene and Tropical Medicine (IHTM), Universidade Nova de Lisbon

Romania Federation of Local Authorities (FALR)

Russian Press Development Institute (PDI)Federation

Saudi Arabia Islamic Development BankKingdom of Saudi Arabia, Institute of Public Administration (IPA)

Senegal Centre Africain d’Etudes Supérieures de Gestion (CESAG)International Development Research Centre (IDRC), acting through the Secretariat

for Institutional Support for Economic Research in Africa (SISERA)Centre d’Etudes de Politique de Développement (CEPOD), formerly Unité de

Politique Economique (UPE)

Center for Democratic Culture

Singapore National University of Singapore (NUS)

South Africa Center for Environmental Economics and Policy in Africa (CEEPA), University of Pretoria


Serbia and Montenegro


Spain Centro de Educación a Distancia para el Desarrollo Económico y Tecnológico (CEDDET)Fundación José Ortega y Gasset (O&G)Ministry of Economy and FinanceNational Distance Learning University FoundationUnited Cities and Local Governance (IULA)University of the Basque Country

Sweden Ministry of Foreign AffairsSwedish Institute for Public Administration, SIPUSwedish International Development Cooperation Agency, SIDAVolvo

Switzerland HelvetasSwiss Agency for Development and Cooperation (SDC)World Wide Fund for Nature (WWF)

Tajikistan Counterpart TajikistanState Statistical Committee under the Government of the Republic of Tajikistan

Tanzania Eastern and Southern African Management Institute (ESAMI)

Thailand Asia Foundation (TAF)Center for Health Economics, Faculty of Economics, Chulalongkorn UniversityNational Economic and Social Development Board (NESDB)National Statistical Office (NSO)

Togo Centre for African Family Studies

Turkey Ministry of Interior, General Directorate of Local Authorities Turkish Economic and Social Studies Foundation (TESEV)Turkish International Cooperation Agency (TICA)

Uganda Makerere UniversityMunicipal Development Program for Eastern and Southern Africa (MDP-ESA)

United British CouncilKingdom Department for International Development (DFID)

International NGO Training and Research Centre (INTRAC)Shell Foundation

United States Center for Science, Technology, and Society (CSTS) and Tech Museum of Innovation (TMI)of America Columbia University

Development Gateway FoundationDuke University, acting through the Duke Center for International Development (DCID)Ford Motor CompanyGeorgetown University (Centro de Estudios Latinoamericanos, Programa Colombia)Global Development Network (GDN)Harvard University School of Public HealthHenry J. Kaiser Family FoundationInternational Food Policy Research Institute (IFPRI)John F. Kennedy School of Government, Harvard UniversityLincoln Institute of Land PolicyMassachusetts Institute of Technology, Department of Urban Studies and Planning


79A n n u a l R e p o r t 2 0 0 4

Merck CompanyThe Wharton School, University of PennsylvaniaUnited States Agency for International Development (USAID)United States Department of StateWilliam and Flora Hewlett FoundationWorld Links Organization of Washington, D.C.WorldSpace Foundation

Uzbekistan Business Women’s Association of Uzbekistan

Vietnam Vietnam Academy for Social Sciences (formerly National Center for Social Sciences and Humanities of Vietnam)

Zimbabwe Municipal Development Program for East and Southern Africa (MDP-ESA)

African Development Bank (AfDB)

Asian Development Bank (ADB)

ASEAN Secretariat (ASEC)

Economic Commission for Latin America and the Caribbean (ECLAC)

Economy and Environment Program for Southeast Asia (Singapore)

International Development Law Organization (IDLO), Rome, Italy

International Monetary Fund (IMF)

International Training Centre of the ILO (ITC/ILO)

Organisation for Economic Co-operation and Development (OECD)

Pan American Health Organization

United Nations Development Programme (UNDP)

United Nations Economic and Social Commission for Western Asia (ESCWA)

United Nations Educational, Scientific, and Cultural Organization (UNESCO)

International Institute for Educational Planning (IIEP)

United Nations Institute for Training and Research (UNITAR)

United Nations Population Fund (UNFPA)

* Organizations with which WBI had formal agreements in FY04.


Multilateral and Regional Organizations


Scholarships and Fellowships Programs

The Joint Japan/World Bank Graduate Scholarship Program (JJ/WBGSP)

6

WBI’s scholarship and fellowship programs help develop capacity

and human resources in the developing world. WBI administers

the Joint Japan/World Bank Graduate Scholarship Program (JJ/WBGSP)

and the Robert S. McNamara Fellowships Program (RSMFP).

“I am very pleased

that the World Bank has

awarded graduate

scholarships to promising

candidates to study

abroad in development-

related fields. This is a

vital contribution to the

economic development

of developing countries.”

—His Excellency Saidakhror Gulyamov,

Minister of HigherEducation and Secondary

Specialized Education,Uzbekistan

The goal of the JJ/WBGSP is to create a community of highly qualified professionals working ineconomic and social development in developing countries. Wholly sponsored by the government ofJapan, JJ/WBGSP is the largest graduate degree program in the United Nations system. Now in its18th year, the program has received some 45,000 applications and awarded more than 3,000 scholarships to mid-career professionals from developing countries to pursue graduate studies leadingto master’s degrees in development-related fields.

Currently, more than 500 scholars are studying under the sponsorship of the program around theworld in Regular and Partnership program segments.

Regular Program. For the 2004–05 academic year, 348 Regular Program scholars representing 104countries were selected from 3,461 applicants. Of the new scholars,

n 40 percent are female.n 50 percent come from WBI focus countries.n 61 percent have humble backgrounds, as indicated by parents with a high school education

or less.n 92 percent are from the public sector, nongovernmental organizations, or regional/international

organizations.n Major fields of study are economics (25 percent); public policy and international development

(24 percent); environment (21 percent); and public health (12 percent).

JJ/WBGSP Master’s DegreeProgram in Taxation Policy andManagement at Keio University

Cohort 7 Degree Conferment

March 29, 2004

81A n n u a l R e p o r t 2 0 0 4

Partnership Programs. JJ/WBGSP supports 11 Partnership Programs in universities around the world.These programs enable scholars to receive specialized training in key areas of development. AllPartnership Programs lead to a master’s degree.

In collaboration with the African Capacity Building Foundation (ACBF), four master’s degree programsin economic policy management were established in Africa: two francophone programs (at CocodyUniversity in Côte d’Ivoire and Yaoundé II University in Cameroon) and two anglophone programs (at Makerere University in Uganda and the University of Ghana at Legon). Five additional partnershipprograms are ongoing at four Japanese universities: University of Tsukuba (policy management),Yokohama National University (infrastructure management and public policy and taxation), KeioUniversity (tax policy and management), and GRIPS, National Graduate Institute for Policy Studies(public finance). The Partnership Program at Harvard University leads to a Master of PublicAdministration in International Development; JJ/WBGSP sponsors up to 15 new scholars at Harvardeach year. JJ/WBGSP also sponsors 15 scholars a year in Columbia University’s Program in EconomicPolicy Management.

The total number of sponsored scholars in both Regular and Partnership Programs is nearly 600. They are studying all over the world.

Program Finances. JJ/WBGSP was initiated by the government of Japan 18 years ago as part of the Policy and Human Resources Fund (PHRD). Japan has contributed more than $130 million toJJ/WBGSP since the inception of the program, showing its strong commitment to capacity development and human resource development in low-income and developing countries.

Impact. JJ/WBGSP alumni are highly placed in public service in their home countries, where theycontribute to human resource development, capacity building, and poverty reduction in the developing world.

The Robert S. McNamara Fellowships Program (RSMFP)

The RSMFP was established in 1982 with a $1.8 million contribution from eight developing countries:Bangladesh, China, India, Kuwait, Nigeria, Pakistan, Peru, and Yugoslavia—supplemented by $1 millionfrom the World Bank.

The program sponsored some 200 researchers in its 18 years of existence. In 2001, the World Bank’sboard of directors restructured RSMFP into a master’s degree program in public policy at the WoodrowWilson School of Public and International Affairs, Princeton University. The Bank and Princeton jointlysponsor up to 10 scholars a year. Last year, six scholars graduated and entered public life.

“The JJ/WBGSP is a high

priority in Mongolia,

given the substantial

constraints of high-quality

professional training in

the country, as well as the

limitations of resources

for scholarships abroad.

The country will benefit

enormously from the

World Bank administered

scholarship program.”

—Oyunbileg Baasanjav, World Bank Mongolia

Office

Sponsored scholars recog-nize how the programaffects their lives and theircountries’ development:

“Only because of the

generosity of the govern-

ment of Japan in spon-

soring the MPA-ID, are

students like me able to

attend this fantastic

program. Now that I

am graduating, I would

like to express my deepest

gratitude for giving me

this terrific opportunity to

invest in my education.”

—Marcos J. P. Monteiro,Harvard Scholar 2002–04

Publications


To order from the World Bank

Telephone: 800–645–7247 or703–661–1580Fax: 703–661–1501Email orders: [email protected]:www.worldbank.org/publicationsMail: The World BankP.O. Box 960Herndon, VA 20172–0960

USA

Beyond Economic Growth:An Introduction toSustainable Development

Tatyana P. Soubbotina

What is development? And whatdoes it take to make develop-ment sustainable? How can we

measure and compare levels of development fordifferent countries? The author of Beyond EconomicGrowth challenges readers to find their ownanswers to these complex questions by analyzingand synthesizing information on a range of criticaland related development issues: populationgrowth, economic growth, equity, poverty, hunger,education, health, industrialization, privatization,trade, foreign investment, international aid, cli-mate change, the Millennium Development Goals,and more.

Drawing on recent World Bank data, BeyondEconomic Growth is written for young people,teachers, students, and others interested in ques-tions such as why the world’s population is grow-ing faster than ever before, whether poor coun-tries can break the vicious circle of poverty andhunger and catch up with the rich, how healthrisks and needs for education are changing in different parts of the world, and how official cor-ruption can affect national development.

Completely revised and expanded, this second edi-tion of Beyond Economic Growth includes new sec-

tions on: global hunger, HIV/AIDS, internationalmigration, government corruption, and theMillennium Development Goals.

2004. 180 pages. Stock no. 15933 (ISBN 0-8213-5933-9).

Price: $20.

KnowledgeEconomies in theMiddle East andNorth Africa: TowardNew DevelopmentStrategies

Jean-Eric Aubert andJean-Louis Reiffers, editors

The Middle East and North Africa face consider-able economic challenges. Left behind by theindustrial revolution, overly dependent on oilresources, and on the fringes of the globaliza-tion process, several countries in the regionhave embarked on structural reforms to over-come economic stagnation, mounting unemploy-ment, and increasing poverty. At the same time,there is growing awareness that the knowledgerevolution offers new opportunities for growth.By mastering new information and communica-tion technologies, the region may be able tobenefit from a new form of global economicdevelopment rooted in the concept of theknowledge economy—based on the creation,acquisition, distribution, and use of knowledge.

WBI publishes books, working papers, case studies, and other

learning materials that help extend the Institute’s reach beyond

the classroom. Although most materials are developed as part

of programs, manuscripts on topics related to WBI’s work are

sometimes accepted from staff in other parts of the World

Bank, other development organizations, and universities.

Formal publications are subject to careful editorial attention

and peer review; informal work in progress that the Institute

wishes to disseminate quickly for discussion and testing is

vetted less thoroughly.

7

Developed from papers prepared for a WorldBank–sponsored conference, Knowledge Economiesassesses the challenges confronting the regionand analyzes its readiness for the knowledgeeconomy based on a set of indicators. A quantita-tive analysis benchmarks the countries againstworldwide knowledge-economy trends, identifieskey implementation issues, and presents the basicpolicy elements that underpin a strategy to pre-pare for a knowledge-based economy. Amongthose elements are the renovation of educationsystems, the creation of a climate conducive toinnovation, and the development of an efficienttelecommunications infrastructure. The formula-tion of national visions and strategies is also dis-cussed. Examples from the region and other partsof the world illustrate the chapters. A set of datathat makes it possible to benchmark and positioncountries’ readiness for the knowledge economy ispresented in an appendix.

2003. 92 pages Stock no. 15701 (ISBN 0-8213-5701-8).

Price: $20.00.

Public Health in theMiddle East and NorthAfrica: Meeting theChallenges of the 21stCentury

Anne M. Pierre-Louis, FranciscaAyodeji Akala, and HadiaSamaha Karam

Public Health in the Middle East and North Africadocuments the main highlights and findings froma regional symposium in Beirut in June 2002. The region is undergoing epidemiological anddemographical transitions that are changing patterns of mortality and morbidity. Chronic andnoncommunicable diseases and injuries nowaccount for a growing share of the burden of illhealth. Countries are faced with the challenge of addressing these emerging issues while tryingto complete the unfinished agenda of arresting communicable diseases and protecting the healthof mothers and children.

Addressing public health in the Middle East andNorth Africa requires both national and regionalactions. Documenting the key regional public

health challenges and the findings of the Beirutsymposium, Public Health in the Middle East andNorth Africa stimulates dialogue and policy actionson critical issues of public health importance tothe region.


Price: $20.00.

Granting andRenegotiatingInfrastructureConcessions: Doing ItRight

J. Luis Guasch

Just a decade ago, infrastruc-ture concessions promised to

solve Latin America’s endemic infrastructure deficit.Awarded in competitive auctions, these concessionswere supposed to combine private sector efficiencywith rent dissipation brought about by competi-tion. Yet something did not go quite right, as con-cessions were plagued with opportunistic renegoti-ations, most of them at the expense of taxpayers.

Granting and Renegotiating InfrastructureConcessions is a major step toward understandingwhat went wrong and what should be done differ-ently in the future to reap the potential benefits ofprivate participation in infrastructure. It begins byanalyzing a rich data set on more than a thousandinfrastructure concessions, uncovering a series ofpuzzling facts. It then considers alternative expla-nations for the patterns discovered and concludeswith a series of insightful policy proposals aimed atavoiding common mistakes, thereby enabling con-cessions to contribute to economic growth andpoverty reduction.


Price: $25.00.

83A n n u a l R e p o r t 2 0 0 4

Publications


Leadership and Innovationin SubnationalGovernment: Case Studiesfrom Latin America

Tim E. J. Campbell and Harald Fuhr, editors

Leadership and Innovation in SubnationalGovernment takes stock of promising innovationsthat began to appear in local governmentsacross Latin America and the Caribbean in the1990s. The purpose of this work—in contrast tomany reports that document best practice—is todeepen our understanding of the genesis andevolution of change as local leaders cope withthe challenges of governing in decentralizeddemocracies. One of the most striking featuresexhibited by the cases in this volume is thatlocal authorities have driven change, often with-out help from national or international agencies.The authors, Tim Campbell and Harald Fuhr, callthese enterprising local risk takers an “engine ofchange.” Twenty cases of innovation are documented in the study, covering the core busi-ness areas of cities—finance, popular participa-tion, service delivery, privatization, and person-nel management. The book shows how, in policyand practice, to sustain the engine of change.

One of the central messages of the work is thatby supporting key steps in the process of innova-tion, donors can enjoy cost-effective impactsand help to achieve the next stages of reform inthe region. But to do so, they must focus onmanagement and learning at the local level,building on the foundations of broad participation in public choice and helping localactors learn from each other.


Price: $35.00.

Subnational DataRequirements for FiscalDecentralization:Case Studies fromCentral and EasternEurope

Serdar Yilmaz, Jozsef Hegedus, and Michael E. Bell,editors

It is increasingly clear that designing effectiveintergovernmental fiscal systems requires subna-tional demographic, social, economic, and fiscaldata. In Central and Eastern European countries,the legacy of the region’s communist past areinformation systems rooted in the centralizedeconomy. Such an approach becomes less accept-able as economic issues become more complexand as subnational governments assume respon-sibility for the delivery of local services. Aspolitical imperatives support increasingly demo-cratic forms of governance—in which people’sneeds must be taken into account in the designof policy options—there is a need for informa-tion systems that provide policymakers and citi-zens the data they need to assess the outcomesof policy choices.

Subnational Data Requirements for FiscalDecentralization summarizes the findings of needsassessments in five demonstration countries atdifferent stages of fiscal decentralization:Bulgaria, Romania, the Slovak Republic, Slovenia,and Ukraine. The assessments were performed aspart of a program on subnational statisticalcapacity building launched by the World BankInstitute, the Organisation for Economic Co-oper-ation and Development, and the EconomicDevelopment Center of the Soros Foundation.


Price: $35.00.

85A n n u a l R e p o r t 2 0 0 4

Capacity EnhancementIndicators: Review ofthe Literature

Yemile Mizrahi

The stark conclusion ofMizrahi’s review is that

despite the importance accorded to the concept,of capacity enhancement, little effort has goneinto concretely defining what it means. To alarge extent, the difficulty emerges from a vagueunderstanding of the term “capacity,” and evenless clarity about the results to be expected fromefforts to enhance it. The paper suggests thatthe analytical framework and results orientationof capacity enhancement programs can bestrengthened considerably by asking the ques-tions: Capacity for whom? and Capacity forwhat? Although a general agreement is emergingwith respect to the levels at which capacityenhancement endeavors can be directed—indi-vidual, organizations, and institutions—capacity-related outcomes will be amenable to measure-ment only if they are concretely defined. Theauthor encourages readers to think of capacitybuilding as a process and therefore to defineinterim benchmarks.

2004. 38 pages. Full text PDF 950 Kb

Back from the Sidelines? Redefiningthe Contribution of Legislatures to the Budget Cycle

Joachim Wehner

This paper looks at the role of parliaments in thebudget process—from the role of finance andbudget committees that scrutinize proposed government budgets prior to parliamentaryapproval, to the role of public accounts and

departmental committees that monitor actualgovernment spending. The author uses a compar-ative approach, reviewing presidential and parlia-mentary systems and highlighting the differencesbetween parliaments’ constitutional powers andcurrent practices. An additional focus is given tothe research and information needs of parlia-ments as they deliberate the budget and theimportance of parliamentary committees as the“engine rooms” of financial scrutiny.

2004. 26 pages. Full text 465 KB

Beyond BasicEducation:SecondaryEducation in theDeveloping World

Benjamin Alvarez, JohnGillies, and MonicaBradsher

This collection of essays, prepared by theAcademy for Educational Development and theWorld Bank, is intended to contribute to thedevelopment of practical knowledge on the education of youth and the issues and challengesfacing developing countries as they strive toexpand access to secondary education. In this context, secondary education no longerserves only to prepare students for higher education, but also increasingly prepares youngpeople to become productive citizens upon completing school.

2003. 112 pages. Full text PDF 1,369 Kb

WBI Working Papers and Case Studies

These and other World Bank Institute Working Papers are available in Adobe Acrobat PDF format at:http://www.worldbank.org/wbi

Publications

Publications


Ingredients of CapacityEnhancement: Three Case Studies inTelecommunications

Vera Wilhelm and Susanne Mueller

The authors examine capacity enhancement atthe institutional, or policy, level, using an ana-lytical framework to investigate three main ele-ments of capacity enhancement—a country’sresources and capabilities, its institutional envi-ronment, and incentive structures and pressures.The framework is applied to three country casesin the telecommunication sector in an effort toisolate factors for success and failure.

2003. 53 pages. Full text PDF 740 Kb

Parliament and the Media

Nicolas Bouchet and Nixon K. Kariithi

This two-part paper (a jointproduct of WBI and theCommonwealth ParliamentaryAssociation) contains in part one the conclusions reached

by the Study Group on Parliament and Media, areport of its discussions, and the input ofresource persons with parliamentary, legal, andmedia expertise. Part two consists of a summaryof the discussions of the Indian Ocean RimConference on “Parliament and the Media:Securing and Effective Relationship,” held in 2002.


Parliaments and the PRSP Process

K. Scott Hubli and Alicia P. Mandeville

This paper is designed to help those involved inpoverty reduction to identify activities and pro-grams that will integrate existing democratic

institutions into poverty reduction efforts, thusstrengthening the impact and sustainability ofeach country’s poverty reduction strategy paper.As such, it is intended to be a tool for Bank andFund staff, national PRSP commission members,members and staff of parliaments, and otheractors seeking to unite a country’s economic anddemocratic transitions.


Perspectives onGlobalization ofInfrastructure

Frannie Léautier and Andrew C. Lemer

Although the facilitiesand services of infra-structure are still seen by

public works managers and users as essentiallylocal, the underlying demands for infrastructureand the means employed in its finance anddevelopment are increasingly global in scope.Business relationships and production areincreasingly spread across national boundaries.Work proceeds “24/7.” Most important, forincreasing numbers of those who concern them-selves with infrastructure development and man-agement, the ways we think about infrastructureand make decisions are undergoing fundamentalchanges.

This paper is an examination of the effect ofglobalization on infrastructure, with examplesfrom local projects.

2003. 23 pages. Full text PDF 391 KB

http://siteresources.worldbank.org/WBI/Resources/wbi372

27LemerandLeautier.pdf

The Role of the State and Consequencesof Alternative Forms of PublicExpenditure Financing

B. Moreno-Dodson and J.M. González-Páramo

This paper analyzes the implications—for macro-economic stability, growth, and poverty reduc-tion—of the choices made by governments toraise revenues to finance public spending. Theanalysis is preceded by a discussion of the role ofthe government and the rationale behind itsattributed functions, which, the authors assert,affects all public policy decisions.

2003. 50 pages. Full text PDF 453 KB

Capacity Enhancement Briefs

WBI’s new series of Capacity Enhancement Briefsshares best practices and lessons learned fromconcrete examples of capacity development.

Published monthly, the briefs are available on theweb at http://www.worldbank.org/capacity/

Issue No. 8PARLIAMENTARY STRENGTHENING: TheCase of Ghana Frederick C. Stapenhurst, Senior Public SectorManagement Specialist, WBIPR

Issue No. 7TOOLS FOR DEVELOPMENT: Public SectorGovernance ReformVera A. Wilhelm, Senior Economist, PRMVP, andInna Kushnarova, Consultant, PRMVP

Issue No. 6PUBLIC FINANCIAL ACCOUNTABILITY INPAKISTAN: The Impact of PIFRA onCapacityIsmaila B. Ceesay, Sr. Financial ManagementSpecialist, SARFM, World Bank

Issue No. 5BUILDING CAPACITY IN POST-CONFLICTCOUNTRIES, Alastair J. McKechnie, Country Director forAfghanistan, Bhutan, Maldives, and RegionalPrograms in the South Asia Region, World Bank

Issue No. 4WBI-CHINA HEALTH SECTOR PARTNERSHIP:Fourteen Years and Growing, Chialing Yang, Consultant, WBIHD, Hu Shanlian,Professor, Fudan University, and Abdo S. Yazbeck,Lead Economist, WBIHD

Issue No. 3MONITORING AND EVALUATION FORRESULTS: Lessons from Uganda, Arild O. Hauge, Consultant, Operations EvaluationDepartment (OED), and Keith Mackay, SeniorEvaluation Officer, OED

Issue No. 2CAPACITY ENHANCEMENT AT THE INSTITU-TIONAL LEVEL: Three Case Studies inTelecommunicationsVera Wilhelm, Senior Economist, PRMVP, andSusanne D. Mueller, PREM

Issue No. 1NURTURING CAPACITY IN DEVELOPINGCOUNTRIES: From Consensus to Practice, Govindan G. Nair, Lead Economist

Development OUTREACH Magazine

Development OUTREACH,the flagship magazinein the field of knowl-edge for development,reflects the learningprograms of the WorldBank and presents arange of viewpoints byrenowned authors andspecialists worldwide.Published three times a

year, in print and online, the magazine reachessome 25,000 readers in 130 countries.(www.worldbank.org/devoutreach)

87A n n u a l R e p o r t 2 0 0 4

The World Bank Institute (WBI) helps people,

institutions, and countries to diagnose problems

that keep communities poor, to make informed

choices to solve those problems, and to share what

they learn with others. Through traditional and

distance learning methods, WBI and its partners in

many countries help develop capacity among

policymakers, technical experts, business and

community leaders, and civil society stakeholders;

fostering analytical and networking skills to help

them make sound decisions, design effective

socioeconomic policies and programs, and unleash

the productive potential of their societies.

Unleashing the Power of Knowledge toEnable a World Free of Poverty

World Bank Institute WBI Field Offices

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Annual Report

Annual Report

T H E W O R L D B A N K

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WBI at a Glance Fiscal Year 2004

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Client participants

Partner institutions

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