The CDF stems from an understanding that development cannot simply be defined in economic and financial terms, without equal consideration of structural, social and human development. This approach requires that the country itself implement a development program that is built on stronger partnerships both with the country’s civil society and private sector and with external partners.

The program should focus on clear medium- and long-term poverty reduction and other international development goals with indicators of progress that are carefully monitored by the country’s own institutions.

“Clear progress has been made across the pilot countries, but has been uneven given the inherent long-term nature of the changes sought through the CDF approach, but also because of unforeseen political conflict or change,” says CDF Secretariat head Pablo Guerrero. “Efforts in several pilots have focused on the process of consultation on the country strategic priorities with domestic stakeholders and external partners and maintaining progress in the face of major political and other changes.”

The holistic approach implicit in the CDF means the need to reach a balance between macroeconomic objectives and each country’s social, structural, and institutional needs. Where sector-wide approaches are being tried—in Ghana, Ethiopia, Uganda, and Vietnam, for example—a greater focus on these needs has been possible. In general, progress in the pilot countries has been hampered by weaknesses in institutional and administrative capacity and statistical data.

“One of the early findings is that broader consultation is critical to achieving wide country ownership a key basis for success,” Guerrero says. It has been important in this process to build on existing democratic institutions. Parliaments play a unique role, but NGOs, faith institutions, academics, labor unions, and other groups are also playing a key role in forging a consensus on national priorities. For example, the church, in partnership with a major academic institution, played a catalytic role in the Dominican Republic in bringing together the three major political parties, and helped in forging consensus on the development agenda.

In many pilots, external assistance strategies are becoming increasingly aligned in support of the national strategy. In countries where other development institutions have a comparative advantage, the Bank is withdrawing from a leadership position. It is hoped that the CDF will promote greater joint analytical work and reduced duplication of efforts.