Meeting of the 7 th World Bank Institute External Advisory Council March 29 30, Summary Report
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1 Meeting of the 7 th World Bank Institute External Advisory Council March 29 30, 2004 Summary Report Introduction Frannie Léautier, Vice President of the World Bank Institute (WBI) welcomed seven Council members who traveled to Washington to participate in the 7 th meeting of WBI s External Advisory Council (EAC) meetings from March 28 30, They were: Mr. Syed Babar Ali, Advisor, Packages Ltd., Lahore Pakistan; Professor Partha Dasgupta, Chairman, Faculty Board of Economics and Politics, University of Cambridge, United Kingdom; Dr. Heba Handoussa, Economic Research Forum for Arab Countries, Iran and Turkey, Egypt; Mrs. Ruth Jacoby, Director General, Ministry of Foreign Affairs, Sweden; Ms. Kim Jones, Vice President, Global Education and Research, Sun Microsystems, United States; Baroness Helena Kennedy, Chairperson, The British Council, United Kingdom; and Dr. Jan-Olaf Willums, Head InSpire Management AS, Norway. Professor Pepi Patron, Pontificia Universidad Católica del Perú participated in part of the meetings via video conference from Peru and Mme. Huguette Labelle, former President of CIDA, and Chancellor, University of Ottawa, participated in part of the meeting via telephone connection from Geneva, Switzerland. An agenda for the meeting is attached. The main themes for discussion -- Mainstreaming Capacity Enhancement and Measuring Results -- built on the discussions, ideas and recommendations that emerged from the 2002 meeting. These themes also addressed new challenges that have arisen as a result of WBI s country focus and efforts to link capacity enhancement activities to better achieve country-led development goals. Staff presentations Frannie Léautier s introductory presentation set the scene with an overview of progress on WBI s country focus and capacity enhancement agendas and touched on the important issue of scaling up poverty reduction and the global learning process and conference to be held in Shanghai in May of this year. Dr. Yahya A. Alyahya, Dean of the Executive Board and Executive Director representing Saudi Arabia, gave a welcome address in which he positioned WBI s work in the context of the Bank s broader development framework. Two case studies highlighted WBI s country focus: Kenya and Madagascar. The case studies illustrated the flexibility of country focus, which enables WBI to respond to demand for capacity building services. A third case study on Indonesia s Kecamatan Development Program (KDP) illustrated the potential for scaling up and the importance of the global learning process and Shanghai conference. 1
2 A session described the main delivery mechanisms for much of WBI s interventions through the 16 thematic programs (that are broadly aligned with the Bank s thematic boards and networks) in 30 priority countries using tools to facilitate country-focused results and strengthen developing country institutions. These include partnerships with developing country capacity building institutions and service delivery institutions where WBI interventions aim to strengthen them. The notion of empirically-based programs (using new indicators, data, and analysis to shape strategies) was introduced using the example of WBI s governance program. A discussion of the challenges of managing capacity enhancement interventions so that they effectively help to achieve concrete country-led development, and a presentation on WBI s evaluation methods and recent evaluation findings with a special focus on how to measure the results of capacity enhancement interventions at the country level, also set the stage for discussions. Suggested topics for EAC discussion and advice As is usual, Council members were asked to address a number of specific questions: On Mainstreaming Capacity Enhancement: o Are the changes in approach to country focus addressing the challenges raised at the Council s 2003 annual meeting? o Is WBI s approach to more effectively address the capacity enhancement agenda the right approach for adding value to Bank lending and other development efforts? o Has WBI established realistic and accurate priorities, given the global situation? o If resource constraints demand that WBI slow down in some areas, where should efforts be concentrated and be put on hold? o What other institutions have strengths in capacity enhancement activities that WBI could be utilizing, through partnership or other relationships? On Measuring Results: o What evaluation evidence is necessary and sufficient to show that country capacity has been built or enhanced? o What should WBI s role be in determining country-specific capacity results? o Should WBI: continue to conduct country-focused evaluations? build in-country capacity for independent participatory evaluations? attempt to identify only effects its own interventions have on capacity enhancement or try to determine effects of all players capacity enhancement interventions on countries or sectors or institutions? o Where should the evaluation capacity enhancement function reside -- in the evaluation unit, in the Bank s independent OED, or within the sectors? 2
3 Council Members Discussions A Roundtable discussion took place after the staff presentations and Council members focused on four broad issues: 1. Recent world events especially the war in Iraq, relations among countries and the implications of these for development, the Bank, and WBI; 2. The fragile nature of development funding generally and the need to ensure adequate resources for capacity enhancement for WBI in particular; and 3. the importance of partnerships and networks to enable more effective and efficient capacity enhancement; 4. WBI s Country Focus. 1. World Events One Council member noted there had not yet been a discussion on the implications of changes in the world situation since the last meeting. She especially noted the implications of the Iraq war, issues about the state of relations between countries, issues of injustice and terrorism, globalization and the growing rift among peoples. Frannie Léautier noted that had Mr. Wolfensohn been able to address the group as usual, he most certainly would have addressed these issues. She briefed the Council on the results of the recent Pew survey on globalization, which found that people in the Islamic world were very negative about globalization and international organizations. Those in low-income countries were more positive and those in the large middle-income countries less so. People in most countries were broadly positive about the opportunities globalization can bring but were aware of negative aspects, including loss of culture and identity. (Note: The report is available on the web at ) She noted other challenges: The development community expected financing to be available following the global commitment to financing for development at the Monterrey conference, but it has not been forthcoming. There is an absence of global mechanisms to drive us to action. While the Rome meeting had donors agreeing to push towards results, and Morocco to closer coordination among multilateral development banks, we need innovation to meet development results. Iraq has changed our world and stretched us, as have events and work in Afghanistan, Cuba, Haiti, Somalia, and Sudan. In her closing remarks, Dr. Mamphela Ramphele said she thought that the global system and the international financial institutions that support it -- that has served so well is cracking. While there had been discussions on renewing the international system after the 1990s financial crises, they were abandoned once that crisis was over. We are working with too many unarticulated interests she said, and there is a risk of global organizations not paying enough attention to regional interests. While on one level this is understandable -- we re looking for economies of scale -- it may have led to distrust and skepticism. There is a growing recognition that the international community is listening the learning process leading up to the Scaling Up Poverty Conference to be held in Shanghai is illustrative. 3
4 A Council member noted that the panel on globalization had expressed the view that if left uncontrolled, globalization would widen the gap between rich and poor. The MDGs serve to ensure that globalization is not left uncontrolled. WBI should be the agent for maximizing the benefits of globalization especially through the use of technology. The Council member felt that not enough was being done, and that in some ways the content offered by WBI was not so different from that which EDI (the Economic Development Institute, the former name of WBI) had been teaching. While there is a move toward country level rather than regional learning, WBI is not networking sufficiently and may be wasting opportunities. WBI should focus far more on dissemination. She asked how WBI would facilitate greater access to information, which should be more accessible as a result of globalization and the IT revolution. In terms of the Middle East region she noted three deficits (i) gender (ii) governance (iii) knowledge. She recommended a task force to look at how to do the job better, and to identify the tools that could be put to work. Frannie Léautier alerted Council members to the new Marseilles office, which opened in March, with a mandate to work on governance, cities, education for employment and youth and the knowledge economy in the Middle East and North Africa region. 2. Funding for Capacity Enhancement A Council member noted that WBI s strength lies in the value it adds to development interventions and a Council recommendation should be that WBI funding be secured on an ongoing basis. Another Council member noted that WBI should differentiate itself within the Bank in a similar way that knowledge/training units within an organization in the private sector differentiate themselves. Another Council member reminded that the funding problem comes back to the development architecture. There is not enough acknowledgement of the important role of capacity enhancement. A Council member offered an opinion on the roots of the problem, noting that we ve been doing training and technical assistance for years. It has not been successful, and it comes with an image of overpaid expatriates living in luxury in developing countries. Capacity enhancement in some ways is seen as the outgrowth of training and technical assistance and thus suffers from the same image. Mamphela Ramphele agreed, noting that the culture of technical assistance carried no incentive for technical assistance to work, on the contrary there is an incentive to keep the relationship going. We all -- donors, bilaterals, WBI -- have to be willing to work ourselves out of a job. She also noted we take for granted that capacity enhancement is a good thing - we need an analysis that proves its worth. 3. Partnerships and networks A Council member noted that at the last meeting the EAC had recommended an emphasis on working in partnership that if another organization can do the job better, then they should do it. He asked about progress, especially with potential partners in the UN system. Another Council member noted that many teaching programs could endure with more attention to scaling up and greater use of partnerships and networks. He gave the example of a program 4
5 partnered between a major university, Sida and Bayer that worked with young lecturers at regional workshops and encouraged participants to prepare programs on their own situation and publish the results. Mamphela Ramphele built on this suggestion, indicating that, given the magnitude of the capacity challenges and resource constraints, partnership is a fundamental priority for WBI and the Bank as a whole. 4. WBI s Country Focus While acknowledging that WBI had come a long way with country focus, a Council member warned it should avoid duplication of what others are doing. He also raised the concern of losing WBI s identity within the Bank. Another Council member felt that country specific focus might be at the cost of things that had been done better before. Is there enough value added, or are they parallel activities? Proper country level needs assessment must be undertaken. And they have to be done more transparently. Frannie Léautier responded that on country focus work our evaluation results show that when WBI programs are aligned with operations, results are better. The EAC s feedback and recommendations Baroness Kennedy of the British Council, spoke on behalf of the External Advisory Council, laying out the issues the Council plans to raise in their letter to Jim Wolfensohn. She began by noting that a question the Council should ask is if it remains a useful and valuable asset to WBI and the Bank. She said that Council members are anguished by the issue of financial stringency that is targeting WBI funding. This underscores all of their concerns. The Council recommends that the Bank consider establishing a Wolfensohn Formula for WBI (along the lines of the United Kingdom s Barnet Formula for Scotland). This would be a pertinent legacy given Mr. Wolfensohn s special commitment to WBI and to capacity enhancement. The formula would either provide protection against budget cuts, or provide some kind of weighting in favor of WBI programs in future budget allocations. Education is a public good and should be seen as an investment. WBI must argue this as part of its case for resources. In the climate of cost cutting, WBI must show it can make efficiency and productivity gains and must communicate them. Council members approve of WBI s country focus approach although they did note that related to this is the issue of how WBI differentiates itself. They recommend WBI sell itself and its activities more positively. Council members were impressed by the story boards that showed how value was being added to World Bank programs in Indonesia, Kenya, and Madagascar -- by WBI s interventions. They illustrate new and important roles, including a catalytic role, being played by WBI and this should be replicated. They urged greater attention to partnerships, particularly those with in-country institutions, civil society, and academia. 5
6 They pointed out the importance they attach to the youth agenda, suggesting WBI take on a more prominent role within the Bank. They recommend that the agenda for youth follow the same successful approach the Bank used to mainstream gender into Operations. Council members were struck by the work that WBI had done in Russia, and the fact that its impact had been less marked than elsewhere. They felt that WBI should put its emphasis on poorer countries and countries in the Middle East region. They recommend that WBI look to the corporate world for partners but cautioned that the corporate world is not looking for funding arrangements but true partnership built on win-win arrangements. Council members are conscious that WBI must be aware of what is going on in the world and looking at how current affairs may affect its strategic agenda and program of activities. They cautioned that this not be seen as being political but rather as being strategically focused. Council members were happy with the approach to measuring results that was outlined during the meetings. They noted the importance of the process: learning takes place through the way WBI undertakes this work. While the evaluations IEG undertake are satisfactory for short and medium-term outcomes and impact, Council members recommended that OED should conduct long-term impact evaluations. The strength of WBI is its long-term approach with partnerships that endure. It must have strong advocates for its work, and Council members noted that their letter will reflect this. 6
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