Although the majority of IDA resources are allocated through the Performance-based Allocation (PBA) system, countries emerging from severe conflict (post-conflict countries) or after prolonged disengagement with IDA (re-engaging countries), can, under certain conditions be provided with additional resources. Allocations to countries eligible for this support are determined on the basis of performance as measured by the Post-conflict Performance Indicators framework (PCPI) and, where available, portfolio rating.
Definitions, Criteria and Allocations
Post-conflict countries. Definition. Under the framework agreed in IDA-13, potential candidates for post-conflict IDA allocations must fall into one of the following three categories: (i) a country that has suffered from a severe and long-standing conflict which has led to inactivity of the borrower for an extended period, or at least a substantial decline in the level of external assistance, including from IDA; (ii) a country that has experienced a short but highly intensive conflict, leading to a disruption of IDA involvement; and (iii) a newly sovereign state that has emerged through the violent break-up of a former entity.
Eligibility Criteria. An eligible post-conflict country would need to score “high” in at least one of the three following categories: (i) the extent of human casualties; (ii) the proportion of the population which is internally displaced; and (iii) the extent of physical destruction. The Bank’s OP 2.30 guides the decision on its involvement in these contexts based on four conditions: (i) sufficient reduction of conflict; (ii) reasonable expected stability; (iii) presence of an effective government counterpart; and (iv) evidence of strong international cooperation.
Special Allocations. Under IDA-15, the special post-conflict allocations were set to be provided for a period of up to four (4) years of premium plus six (6) years of phase-out to the performance based norm, for a total of ten (10) years.
During IDA 16 post-conflict countries will also be eligible for a case by case extension of their phase out period beyond six years provided they meet a predetermined set of criteria. Eligibility depends on whether at least two of the following three criteria are met: (i) limited income and financing options as measured by GNI per capita under IDA operational cutoff or lack of access to IBRD; (ii) continuation of conflict as measured by the presence of a UN peace-keeping mission; and (iii) effectiveness of use of IDA resources as measured by IDA portfolio rating at above 3.0 over the last 3 years.
Re-engaging countries. Definition. These countries have not experienced severe conflict but have been disengaged from IDA for a long period of time and expressed willingness to re-engage on the basis of a strong transition program with concerted donor support.
- Eligibility criteria. Eligibility criteria for exceptional allocations under the re-engagement window include: (i) evidence of partial collapse of the state, but ineligibility for IDA post-conflict assistance; (ii) existence of a strong transition plan supported by concerted donor support; and (iii) disengagement from IDA for a prolonged period and accumulation of sizeable arrears to the World Bank Group. During IDA-16 countries that are reengaging with IDA after a prolonged period of inactivity on the basis of a strong transitional plan with concerted donor support are eligible for exceptional allocations.
- Special Allocations. Under IDA-15, the special re-engagement allocation were set to be provided for a period of up to four (2) years of premium plus six (3) years of phase-out to the performance based norm, for a total of five (5) years.
- For the IDA16 period, re-engaging countries will be eligible on a case by case basis for extension of their phase-out period beyond the three years. Eligibility depends on whether at least two of the following three criteria are met: (i) limited income and financing options as measured by GNI per capita under IDA operational cutoff or lack of access to IBRD; (ii) continuation of conflict as measured by the presence of a UN peace-keeping mission; and (iii) effectiveness of use of IDA resources as measured by IDA portfolio rating at above 3.0 over the last 3 years.