Development policy financing retrospective: Emerging findings and lessons

Sponsor: Operations Policy and Country Services (OPCS), World Bank

Panelist: Linda Van Gelder (Director, Operations Policy and Country Services, World Bank), Edward Mountfield (Manager, Operations Policy and Country Services, World Bank), Chair: Edith Jibunoh (Adviser, External and Corporate Relations, World Bank)

Linda Van Gelder – background

• Every 3 years, this is the 4^th (used to be called Development Policy Lending.)
• Focus on environmental and social aspects + long term trends.
• IEG is also contributing through ‘learning products’

Edward Mountfield – detail

• Covers 165 loans – most in Africa by number of operation no, but most in Europe and Central Asia by value.
• Peaked in 2010 (over 40% – due to crisis) fell to >25% in 2013 – FY 2014 >30%

• Most in public sector governance, followed by financial and private sector and trade policy (other areas much smaller.)

• 9 categories of risk (environmental and social is one of the nine)

• 80% = neutral
• 16% likely positive
• 3% likely negative with PSIA

• Many were linked to reducing fuel subsidies.

• 83% none
• 9% positive effects
• 1% significant negative effect
• 6% can’t say.

Jesse Griffiths, Eurodad

• Prior actions have come down to about 8 per loan (were 10 in last review 2010)
• Database is publicly disclosed and they unbundle actions.
• Non-binding: No more benchmarks. Triggers are only counted when they become prior actions.

• Most of the conditions are not possible to identify short term direct impacts for e.g. review this law or change that policy.

Presentation on the Bank’s initial findings of DPF review