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Influential ESWs and TAs

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Examples of The Effects of ESW and TA

The PER is one of the core diagnostic ESW products that was influential both within the Bank (in informing DPLs and CASs) and directly in client countries (in informing government policy and building capacity). The Vietnam PERs (2000, 2005) are among those that had important direct effects. The two reports helped shape legislation to increase the transparency in the state budget law (2002) and led to the adoption of a medium-term expenditure framework and unification of the public accounts system. In addition to informing government policy in these ways, the PERs also built government capacity through the collaborative way they had been done. This is reflected in the increasing involvement of the government in the production of the PER, from providing data (1996), to writing some sections of the report and providing data (2002), to writing the report on an equal footing with the Bank (2005).

The Mauritius Aid for Trade TA (2006) exemplifies influential TA. The government requested the TA to help define its reform program and to mobilize funds as part of the multidonor Aid for Trade Initiative. Within two months of the request, a Bank mission provided analysis of possible reforms, including estimates of adjustment costs of opening up, tax reforms, and strategies to lower the cost of key services. At the end of the two-week mission, the Bank team presented the government with a summary of the main elements of the reform options. Among the important factors underlying the effectiveness of the TA was the timely nature of the support and the leveraging of existing ESW. After extensive internal debate, many of the mission's recommendations were incorporated into the government's reform program, which was supported by a follow-up Bank loan.

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