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The World Bank's Independent Evaluation Group Finds Progress On Growth, But Stronger Actions Needed For Sustainable Poverty Reduction

Dear Colleague,

The World Bank Independent Evaluation Group's Annual Review of Development Effectiveness 2006: Getting Results finds that the vast majority of World Bank projects were rated successful, signaling a positive trend. Yet, successful project outcomes alone do not ensure country-wide results aimed for in countries' development strategies.

To consistently achieve sustainable poverty reduction, the countries, the World Bank and other development partners need:

A stronger focus on the nature of growth to ensure that the poor benefit from economic growth. Economic growth in World Bank borrowing countries has improved over the past five years. The World Bank has helped many countries to get higher growth through improved economic management and structural reforms. In 25 countries evaluated by IEG, poverty reduction differed widely, as a result of the striking variations in growth as well as in income distribution, with small changes in distribution contributing substantially to the impact of growth on reducing poverty.  To ensure that economic growth consistently delivers strong poverty reduction, growth strategies need to strengthen their emphasis on improving job opportunities and living conditions of the poor.
 
Greater attention to identifying and removing constraints across sectors. There are striking complementarities and potential linkages across sectors, be it education and nutrition, health and the environment, or infrastructure and finance, which can increase the impact of development programs. Capitalizing on these potential synergies requires finding effective ways of working across sectoral boundaries.
 
A realistic assessment of the political economy of reforms in the public sector. The World Bank rightly emphasizes strengthening and cleaning up public sector agencies, and has contributed to improvements in key government processes like budgeting and accounting. But the evaluation finds that anticorruption campaigns and related reform programs have been less effective when they have not taken enough account of the local political circumstances.
 

To learn more about these and other major findings of the report, please visit www.worldbank.org/ieg/arde2006?intcmp=5312787 where you can download the report and the executive summary and request a hard copy.

Sincerely,

Vinod Thomas
Director-General Evaluation
Independent Evaluation Group
The World Bank