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Country Analytical and Advisory Activities: Economic Sector Work

Examples of Good Practices: The full QAG Assessment Report can be downloaded by clicking on the hyperlinks to each report provided below:

El SalvadoreThe El Salvador Poverty Assessment, a part of Country AAA and ESW constitutes good practice. A two member panel rated the task Highly Satisfactory overall and in all of its dimensions, as well as in Bank Inputs and Processes. The Panel considers this task to be a good practice because it helped understand the magnitude of poverty in  El Salvador. It not only identified the poor and where they were located, but more importantly, it sharpened the need to focus on the poor and helped bring ownership and commitment at the highest levels of government. The high quality of the report reflects a combination of a) good prior work, b) close contact with the client, the government, c) assembly of a very high quality team, d) attention to political sensibilities, and e) strong management support, including sufficient funding. This lesson is perhaps obvious, but ignoring any of these factors is likely to mean a less than highly satisfactory report, if not a marginally satisfactory report. [Go to Top]

The Tanzania Public Expenditure Reviews  an aspect of Country AAA and ESW, constitutes Good Practice completely and as a whole. The Bank has been preparing annual PERs on  Tanzania since the mid-1990s, including in each of the last three fiscal years—the period covered by the last  Country Assistance Strategy and this AAA assessment. The Panel decided to evaluate the PERs for FY01-FY03 together, given that they were part of a repeated annual process, and in order to better assess their cumulative contribution. Annual PERs have been carried out in other countries but few, if any, have received Highly Satisfactory ratings in all assessment categories in three consecutive years.

A three member Panel rated these Public Expenditure Reviews as Highly Satisfactory, both individually and together. All of the four assessment dimensions as well as Bank Inputs and Processes were also judged Highly Satisfactory.

The factors that contribute to this include the :

  • highly participatory nature of the Public Expenditure Reviews(PER), with the Government being in charge;
  • central role played by the PER process in donor harmonization, both through regular meetings of the Government of Tanzania-chaired PER Working Group and through direct budget support;
  • openness of the process, with broad stakeholder participation at every stage;
  • close link of the PERs with other Bank products (PRSP, PRSC, HIPC, CFAA, and others);
  • close link between the PER and the budget preparation process; and
  • continuity of the process, which affords a near-continuous dialogue on budget issues among the Bank, the other donors and the authorities.

Overall, the panel found that the PER process over several years had clearly contributed to the improvement in fiscal management in Tanzania. [Go to Top]

The Brazil Social Protection Policy Notes, a task of Country AAA and ESW constitutes Good Practice. A three member panel rated the task Highly Satisfactory in all of its dimensions. The panel considers this task a good practice and states that the task is strong in all its three basic facets:

  • the sector analysis is impressively comprehensive and persuasive;
  • the overall Social Protection Policy Note is well integrated giving a strong message – and a very rich agenda – to policy-makers and country leaders, and
  • the dissemination of the Policy Note was of the highest quality that should pay rich dividends in the future.

In particular, the task brought the country team together to provide advice in a tight, fiscal situation. It also proved to be a valuable investment for the Bank in that it provided an important input for the new government in a critical area of policy development. The task team managed to cover a broad range of policy initiatives in an integrated fashion and explain their linkages in a logical manner. This effort clarified the policy framework and made possible the development of a sensible and integrated action plan. The combination of staff and consultants, together with the extensive use of bibliographic materials, many written by Brazilian experts, produced high quality analytical work that provided an excellent foundation for the policy dialogue on social insurance and safety net policies. Moreover, the extensive dissemination of the work made a strong contribution to public debate on these issues. The identification of various options for policy consideration in each of the topic areas relevant for private sector development increased substantially the appeal of the Policy Note. [Go to Top]

The Brazil Inequality Report, a part of Country AAA and ESW constitutes good practice. A three member  panel rated this task as Highly Satisfactory overall and in all of its dimensions. Bank Inputs and Processes were also rated as Highly Satisfactory. The panel considers this task as good practice because it is path breaking, exhaustive, comprehensive, highly informative, and very well-documented. The quality of the analysis was superb.The panel also wishes to note that it brings together a vast body of literature and statistical information that enriches the discussion.

The Inequality and Economic Development in Brazil report was embedded in the Country Assistance Strategy paper of May 2001 and its updates of 2002 and 2003. It responds to the CAS’ primary objective of reducing poverty based on both recent theory and international evidence that suggests that there are clear reasons to expect that excessive inequality slows down (or reverses) poverty reduction, and may worsen welfare in other ways. The report was the result of collaboration between the Instituto de Pesquisa Economica Aplicada (IPEA) and the Bank between 2000 and 2002. The task was jointly managed by the Bank and IPEA. It was fully relevant to the GOB and therefore was fully supported by it. Prior to the launching of the task, IPEA participated intensively with the Bank in defining the scope and methods of the work to be done. The main findings and policy messages were presented at the Second World Bank Development Forum in Brasilia. Distinguished panelists and participants at that event also influenced the form and contents of Volume 1. Discussants and participants met at a two-day seminar A Desigualdade no Brasil: Dimensoes, Peculiaridades e Politicas Publicas in Rio de Janeiro on August 30-31, 2001 to discuss the background papers, which influenced the form and content of the papers included in Volume 2. [Go to Top]

Chile Rural Infrastructure Services ESW:  The Chile Rural Infrastructure Services ESW was assessed by a two member panel and rated as Highly Satisfactory in all of the assessment categories and identified as good practice. The idea of preparing a study on rural infrastructural services (roads, water and sanitation, electricity and telecommunications) was initiated by the Chilean authorities who wanted the Bank to provide advice on an integrated approach to the delivery of rural infrastructural services to achieve universal access to an already well-developed system. Traditionally, government operations in Chile have been highly centralized at the federal level and infrastructural development has followed a sectoral orientation. During the past decade, however, the government has been promoting a greater decentralization of government functions which is a key objective of the current administration. In this respect, the task was intended to provide the framework for a new "territorial approach" to the delivery of infrastructural services to rural areas in Chile   which involved both a devolution of decision-making authority to a regional level of government and the integration of infrastructural development across ministerial lines of responsibility. The AAA work associated with this task led directly to the development of an investment loan to support implementation of the new territorial framework. The panel rated the task in all its dimensions as highly satisfactory, thus reflecting good practice within the Bank.

The scope and strategic relevance of the task was very strong. There was clear evidence of government ownership of the project as reflected in its original request for the study and close involvement in the preparation of the terms of reference. The task was clearly aligned with the  Country Assistance Strategy (CAS) objectives, which focused on promoting social inclusion and reducing inequality between rural and urban regions in Chile, and on supporting the modernization of the state. The decentralization of government functions was seen as a key element in improving the effectiveness of government operations. The task strengthened the Bank’s dialogue with Chile  through close consultation with relevant ministries during the preparation of the study. The study also provided a strong underpinning for an investment loan to support a new approach to the delivery of rural infrastructural services.

The internal quality of the study was generally of a high standard. The study reflected expert knowledge of the subject matter and provided good coverage of best practices in other countries in the delivery of infrastructural services to rural areas through decentralized modes of government operation. The study provided a thorough analysis of the access of infrastructural services in rural areas in Chile and provided a clear roadmap to guide a new "territorial approach" to the delivery of those services. Dialogue and dissemination of the task was also highly satisfactory. Throughout the preparation of the study, there was close consultation with government counterparts in various ministries. A coordinating committee of ministerial representatives was formed to oversee the preparation of the study. The task team also interacted very actively with selected local communities, including the use of surveys designed with local academics, to solicit views on their infrastructural requirements. Particular attention was given to the special needs of indigenous communities. Once the study was concluded, the task team engaged in elaborate preparation of briefing materials for various workshops throughout the country, with the benefit of coaching from the Bank’s multi-sector team learning group. Dissemination of the study in Spanish preceded its publication in English to facilitate a wide public awareness of the study’s findings.

The likely impact of the task is judged to be very strong. The main objectives of the study were clearly achieved through the design of an integrated approach to the delivery of basic services to rural areas. The Bank’s dialogue with the Chilean authorities has clearly been enhanced as a result of this study and the ensuing investment loan to support an innovative approach to the delivery of infrastructural services to rural areas. The benefits for civil society in rural areas through the proposed plan for achieving universal access to infrastructural services are likely to be very significant in moving Chile towards its goal of universal access. Bank inputs and processes were highly effective throughout the preparation of the study. The country and sectoral management units provided clear and sustained support for the study throughout its preparation. The peer reviewers provided highly relevant and constructive comments at the inception and decision phases of the study. [Go to Top]

Chile FSAP: A two member panel considered the FSAP task (ESW) for  Chile as Highly Satisfactory overall and in all of its dimensions, as well as in Bank Inputs and Processes. It is therefore reflective of good practice for AAA work because of its state of the arts quality work on pensions, insurance, and capital markets development. In general, the task appears to have been highly successful for the Chilean authorities and for the Bank, with a strong impact on the Bank’s dialogue with the client and important learning value and lessons for the Bank’s work with other countries.

The FSAP exercise, a voluntary exercise on the part of member countries, was requested by the Chilean authorities to provide a benchmark for their efforts to develop the capital markets in Chile as a basis for sustained economic growth in the future. They looked to the Bank to bring a strong international perspective on capital market development and to provide an integrated view of financial sector issues in  Chile. Accordingly, the authorities cooperated closely with the FSAP team and had a full discussion of its findings. The timingof the exercise was propitious, as the authorities were in the process of finalizing their proposals for a second revision of their capital market legislation. A number of the team’s recommendations were incorporated in that legislation. While technically this project was not envisaged in the current Country Assistance Strategy, it was consistent with one of the three pillars of the Country Assistance Strategy focused on modernization of the state to promote further economic development.

Given the reputation of Chile for high technical standards in its economic policy management, the Bank assembled a very strong team with experienced experts of international stature. This careful selection enabled the team to make clear and important recommendations in regard to the insurance and pensions sectors, and financial sector supervision. The technical studies generated by the team have proved to be very useful for the Bank’s work in other countries. In addition, a stream of technical assistance projects have been generated for the medium term dealing with insurance, pensions and capital market development which will be financed under the FIRS trust fund, with co-payments from Chile.[Go to Top]




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