World Bank Group Strategy
World Bank Group StrategyOctober 2013
ContentsExecutive Summary1World Bank Group Strategy51.IntroductionA. The Development Agenda for Reducing Poverty and Sharing ProsperityB. Focusing the WBG on the Goals5662.Global ContextA. Shifts in the Global EconomyB. The Changing Face of Poverty and ProsperityC. A Globally Connected WorldD. The Challenge of Climate ChangeE. Global Risks and Volatility8891011123.Repositioning the WBGA. WBG Value PropositionB. WBG StrengthsC. Delivering on the Value Proposition131313154.Meeting Development ChallengesA. Development Challenges Countries FaceB. Responding to Country DemandsC. Supporting the Private SectorD. Regional and Global Engagement17171819205.Becoming a “Solutions WBG”A. Using Knowledge for SolutionsB. Achieving Results through the Science of DeliveryC. Seeking Transformational EngagementsD. Taking Smart Risks21212123236.Operationalizing the Goals at the Country LevelA. Improving the Focus of Country ProgramsB. Strengthening WBG Regional Coordination252526WORLD BANK GROUP STRATEGYiii
7.Working with Partners toward the GoalsA. Working with PartnersB. Aligning Partnerships with the GoalsC. Partnering with the Private Sector272727298.Working as One World Bank GroupA. Scaling Up CollaborationB. Joint Learning and Collaboration3030319.Outcome of the StrategyA. Key Outcomes of the StrategyB. Implementing the Strategy323233FiguresFigure 1Figure 2Figure 3Figure 4Figure 5Patterns of Global Growth and GDPGlobal Extreme Poverty and InequalityExtreme Poverty, Poverty, and GDP per CapitaNatural Disasters and CO2 EmissionsIBRD and IDA Commitments810111216BoxesBox 1Box 2Box 3Box 4Box 5Box 6Box 7Box 8Box 9Box 10Previous World Bank Group Strategic ExercisesThe Evolving Structure of Development AssistanceInternational Development AssociationAfrica’s Development ChallengesThe Challenge of Gender EqualitySector Expertise across WBG AgenciesExamples of Transformational EngagementsPartnering in the Great Lakes Region of AfricaInitiatives to Improve WBG CollaborationPotential Areas for WBG Strategy Results Framework791517192224283033Abbreviations and AcronymsAUCASCO2CPFCPSCSOESMIDAfrican UnionCountry Assistance StrategyCarbon DioxideCountry Partnership FrameworkCountry Partnership StrategyCivil society organizationEfficient Securities Markets InstitutionalDevelopmentEUEuropean UnionFCSFragile and conflict-affected situationGAVIGlobal Alliance for Vaccines and ImmunisationGDPGross domestic productGEFGlobal Environment FacilityGFATM Global Fund to Fight AIDS, TB and MalariaIBRDInternational Bank for Reconstruction andDevelopmentICSIDInternational Centre for the Settlement ofInvestment DisputesivWORLD BANK GROUP UWBGInternational Development AssociationInternational Finance CorporationInformation technologyMultilateral development bankMillennium Development GoalMiddle-income countriesMultilateral Investment Guarantee AgencyOfficial development assistanceRegional Coordinating MechanismSouthern African Development CommunitySystematic Country DiagnosticSmall and medium enterprisesUnited NationsVice presidential unitWorld Bank Group
Executive Summary1. This Strategy outlines how the World Bank Groupwill work in partnership to help countries end extremepoverty and promote shared prosperity in a sustainablemanner. The World Bank Group (WBG) has set two ambitious goals:nnEnd extreme poverty: reduce the percentage of peopleliving on less than 1.25 a day to 3 percent by 2030.Promote shared prosperity: foster income growth of thebottom 40 percent of the population in every country.not flag in the future. This broad agenda requires actions atthe country, regional, and global levels.A. GLOBAL CONTEXT3. Important global trends underscore the need for anew WBG strategy to adapt to fast-moving challenges andopportunities.nSecuring the long-term future of the planet and its resources,ensuring social inclusion, and limiting the economic burdens on future generations will underpin efforts. The goals,and the partnerships needed to achieve them, are wellaligned with the international community’s efforts to reachthe MDGs and establish an ambitious post-2015 agenda.2. The two goals emphasize the importance of economic growth, inclusion and sustainability—includingstrong concerns for equity. Economic growth that createsgood jobs requires action to strengthen both the private andpublic sectors. Inclusion entails empowering all citizens toparticipate in, and benefit from, the development process,removing barriers against those who are often excluded.Sustainability ensures that today’s development progress isnot reversed tomorrow and that the pace of progress doesnAlthough the global extreme poverty rate has fallen byhalf since 1990, progress in the developing world has beenuneven. Extreme poverty remains widespread in mostlow-income countries. Roughly half of low-income countries are classified as fragile and conflict-affected (FCS),posing particular challenges. Many middle-income countries continue to have substantial levels of extreme poverty, and many people who have escaped extreme povertyremain poor and vulnerable. Furthermore, progress insharing prosperity is decidedly mixed: in many countriesgrowth is accompanied by rising inequality.Developing countries’ strong economic performanceis shifting the world’s economic center of gravity, theprivate sector is driving employment growth and transforming living standards, private investment has becomethe dominant mode of capital transfer worldwide, andfinancing for development is coming from more diversesources.1
nnA truly global community has emerged through majorincreases in connectivity.Climate change threatens the sustainability of povertyreduction and shared prosperity. Managing risks andvolatility is increasingly critical in a globally interconnected world that is dependent on international markets.B. REPOSITIONING THE WBG4. The WBG Strategy builds on a strong foundation;what is new is the singular focus on the two goals in a rapidly changing global context. The WBG offers a platform where the perspectives of all countries and citizenscan be brought to bear. The WBG’s global reach can helpshape the international community’s response to crisis andvolatility and to complex threats like climate change, whichrequire concerted action at all levels. In a world where theprivate sector is driving growth and capital flows, the WBGcan help the public and private sector work together, usingofficial development assistance to leverage private investment. To ensure that citizens are empowered, the WBG canbuild on its open data, open knowledge, and social mediainitiatives to make knowledge more accessible. Finally,the WBG can offer solutions that integrate finance withknowledge enriched through global networks, world-classresearch, and hands-on implementation experience.5. Operating as One Group, the WBG intends to workwith the public and private sectors in partnership to endextreme poverty and boost shared prosperity sustainablythrough a value proposition to:C. MEETING DEVELOPMENT CHALLENGES7. As a global multilateral institution, the WBG willcustomize its support to member countries’ needs toend poverty and promote shared prosperity sustainably.As the traditional grouping of developing countries intoincome categories becomes less relevant, more attentionis needed to the multiple facets of fragility and resilienceacross the income spectrum. While meeting the needs ofpoor countries will remain a high priority for the WBG,it will also continue to help middle- and upper-middleincome countries sustain progress toward the goals and tosupport higher-income countries, notably during times ofdistress. The specific challenges of countries struggling withfragility, and the particular needs of small and island states,will receive critical attention.Help advance knowledge about what works, combiningthe world’s leading development research and practitioner experience with a commitment to transparency,open data, global outreach, and knowledge dissemination.8. The WBG will use evidence to align all its activities with the two goals, maximize development impact,and draw on its comparative advantages. The WBG willsupport country-specific policies and investments thatstrengthen growth, inclusion, and sustainability—including support for job creation, good governance and anticorruption, gender equality, environmental sustainability,and crisis response. It will emphasize drawing in multiplestakeholders. The WBG will also continue to help countriesimprove the business environment, and to support theprivate sector in overcoming constraints to investment andgrowth—to create jobs; promote innovation, technology,and skills transfer; and develop supply chains and exportmarkets. With its ability to work with both public andprivate sector clients, the WBG will increasingly promotepublic-private partnerships.6. To deliver on the value proposition, the WBG needsto reposition itself. It needs to invest in knowledge, technical skills, information technology, and the “solutions” plat-9. The WBG will strengthen the strategic alignment ofits regional and global engagements with the two goals.The WBG faces growing demands for engagement at thennn2form, break down silos, focus on multi-sector approaches,and increase flexibility and speed up delivery. The WBGneeds to crowd in resources, experience, and ideas moreeffectively through partnerships and to deepen globalengagements that are aligned with the two goals. It needsto strengthen its country engagement model and supportevidence-based public policy. It also needs to develop a newframework for medium-term financial sustainability toensure that its resources are commensurate with the rolesand responsibilities it carries out on behalf of the international community.Contribute to the global development agenda throughdialogue and action on ongoing and emerging development challenges, bringing the perspectives of all itsmember countries.Support clients in delivering customized developmentsolutions backed by finance, knowledge, and conveningservices.WORLD BANK GROUP STRATEGY
regional and global levels, and demands for services ranging from international standard-setting to convening onglobal agendas. Global and regional engagements representan important opportunity to enhance development impact,but this rapidly growing role also places additional demandson the WBG that it must ensure are aligned with the goals.D. BECOMING A “SOLUTIONS WBG”10. Helping accelerate progress toward the two goalsdemands a new form of problem-solving engagementby the WBG—one that moves definitively from a projectmentality to a development solutions culture embedded inwidely disseminated knowledge and evidence of what worksand how to deliver it. Systematically supporting clients indelivering customized solutions that integrate knowledgeand financial services and encompass the complete cyclefrom policy design through implementation to evaluationof results lies at the heart of the WBG’s value proposition.nnnnTo increase development impact, delivery speed, andagility, the WBG will manage risk better, focusing onsmart risk-taking while preserving its internationallyrespected fiduciary, integrity, and safeguards norms.It will establish global practices, which will combine theestablished strengths of local delivery support with theability to generate, share, and deploy knowledge frominside and outside the WBG—facilitating rapid responseto client demands for support in tackling complex development challenges.Building on its existing results orientation, the WBG willfocus on how its engagements contribute concretely tothe sustainable achievement of the two goals, as well ashow to monitor and measure results as One WBG.In partnership with others, the WBG will help to buildthe science of delivery—evaluating whether an intervention is having the intended outcomes, adapting oraltering it, and fostering the generation and exchange ofknowledge about what works.11. The WBG will identify and support engagementswith the potential for transformational impact. Transformational engagements produce demonstration effects thatcan be replicated or scaled up; generate spillover effects onmultiple sectors of the economy, including broader changesthat increase government effectiveness or stimulate privateinvestment; result in far-reaching impacts; or help clientcountries, regions, or even the entire developing world shiftto a higher and/or more sustainable development path.E. OPERATIONALIZING THE GOALS12. The WBG will strengthen the focus of its countryprograms by developing a more evidence-based and selective country engagement model in the context of countryownership and national priorities, and in coordinationwith other development partners. A Systematic CountryDiagnostic (SCD) will use data and analytic methods tosupport country clients and WBG teams in identifying themost critical constraints to, and opportunities for, reducingpoverty and building shared prosperity sustainably, whileexplicitly considering the voices of the poor and the viewsof the private sector. The Country Partnership Framework(CPF) will describe focus areas for WBG support, alignedwith the country’s own development agenda and selectedprimarily to address the key constraints and opportunitiesidentified in the SCD. Performance and Learning Reviewswill identify and capture lessons; determine midcoursecorrections, end-of-cycle learning, and accountability; andhelp build the WBG’s knowledge base, including effectiveapproaches for integrating inclusion and sustainabilitydimensions (including gender and environmental sustainability) into the SCD and CPF. A new Regional Coordinating Mechanism will formalize country-and regional-levelcoordination among the Bank, IFC, and MIGA. The RCMwill help the WBG with its regional engagements.F. WORKING WITH PARTNERS13. Meeting the goals demands deepening partnershipsacross the development spectrum. Successfully overcoming the toughest development challenges requires concertedaction at all levels. The WBG cannot do it alone. It willbuild on existing collaborative relationships and developnew partnerships to help address key development issues ina way that no single agency or country can. It will also stepback where others have clear comparative advantage andwill actively support leadership roles for partner organizations. The WBG will ensure that its partnerships are wellaligned with the goals and will draw on its comparativeadvantages; to this end, the Bank has launched the nextphase of trust fund reform and developed a managementframework to strengthen the strategic alignment of its partnership engagements. Private sector resources and expertiseare critical to achieve the two goals. The WBG has longstanding experience in mobilizing private partners and willWORLD BANK GROUP STRATEGY3
expand those efforts, including through IFC’s new clientrelationship model.G. WORKING AS ONE WORLD BANK GROUP14. Working as One WBG is central to the WBG Strategy. Collaboration across the WBG will be increased systematically, and planning and budgeting processes will bebetter coordinated at the corporate level. This will taketime, concerted effort, and a continual change process. Thenew CPF will mainstream joint business planning as thebackbone for strengthening operational collaboration. TheWBG will increase the number of joint projects and reviewits portfolio of products and services to improve synergiesand eliminate overlap. These initiatives will be reinforcedby stepped-up efforts to align policies and practices andpromote changes to the operational cultures of each agency.The WBG will develop metrics for institutional collaboration; move to harmonized policies for the WBG in a manner that is consistent with the Bank’s Articles of Agreementand that recognizes the different needs of public and privatesector clients; address conflict-of-interest issues; and stepup training.H. OUTCOME OF THE STRATEGY15. The Strategy envisages a repositioned WBG that hascatalyzed the development community to seize the opportunity to win the age-old struggle against poverty andexclusion. The repositioned WBG will:nnnn4Align all WBG activities and resources to the two goals,maximize development impact, and emphasize WBGcomparative advantage.Operationalize the goals through the new countryengagement model to help country clients identify andtackle the toughest development challenges.Be recognized as a Solutions WBG, offering world-classknowledge services and customized development solutions grounded in evidence and focused on results.Seek transformational engagements and take smart risks.WORLD BANK GROUP STRATEGYnnPromote scaled-up partnerships that are strategicallyaligned with the goals, and crowd in public and privateresources, expertise, and ideas.Work as One World Bank Group committed to achieving the goals.16. The Strategy will be carried out through implementation plans that support an effective and efficient WBG. Therepositioned WBG will be supported by a realigned financialstrategy based on the principle of financial sustainability andsupported by a One WBG approach that will better serveclients. Resources will be aligned to the Strategy, and WBGefficiency will be improved. Steps will be taken to strengthenWBG leadership, values, and culture. Human resource management will be improved to nurture and sustain the WBG’sgreatest asset—its dedicated and experienced staff. Implementation of the Strategy and the change process will bemonitored regularly and reflected in the Corporate Scorecardas it is revised. Periodic client surveys will gauge the degree ofclient satisfaction as the ultimate measure of success.17. The opportunity is historic, but bold steps will beneeded, and the risks are multifold. The WBG faces significant risks to delivering on its commitment to the two goals,particularly if it falters in implementing the actions identified in the Strategy. Management will need to meet its commitment to keep the WBG relentlessly focused on the goals,to offer clients world-class development solutions, and tooperate truly as One World Bank Group, as well as to moveahead with changes to make the organization more efficientand stronger. Continued strong engagement with the Boardof Executive Directors and the Governors will be decisiveto address key areas such as the budget and financial sustainability, and to support the shift to a “Solutions WBG”.Achieving the goals depends on each member governmentand the international community as a whole demonstratingthe political will to focus on the poor and disadvantaged,and to act in partnership with the private sector and civilsociety. Effective global action requires that all countries andmultilateral institutions demonstrate a renewed capacity tocollaborate. Together, we can do what it takes to end povertyand build shared prosperity in our time.
World Bank Group Strategy1. INTRODUCTION1. At the World Bank Group’s 2013 Spring Meetings, amilestone was reached in the effort to achieve a world freeof poverty. The Development Committee endorsed twogoals to guide World Bank Group (WBG) action:nnTo end extreme poverty: reduce the percentage of peopleliving on less than 1.25 a day to 3 percent by 2030.To promote shared prosperity: foster income growthfor the bottom 40 percent of the population in everycountry.2. The WBG is committed to supporting countries inreducing poverty and building shared prosperity in a sustainable manner. Environmental, social, and economic sustainability require action to secure the future of the planet,ensure social inclusion, and set a solid foundation for thewell-being of future generations. A global commitment toenvironmental sustainability—including stronger collectiveaction to support climate change mitigation and adaptation—Note: The World Bank Group Strategy covers the International Bank forReconstru
WORLD BAN GROP STRATEG iii Executive Summary 1 World Bank Group Strategy 5 1. Introduction 5 A. The Development Agenda for Reducing Poverty and Sharing Prosperity 6 B. Focusing the WBG on the Goals 6 2. Global Context 8 A. Shifts in the Global Economy 8 B. The Changing Face of Poverty and Prosperi
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