UK evaluates World Bank; publishes new strategy

News|Bretton Woods Project|15 November 2004|update 43|url
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The UK's Department for International Development (DFID) has published an evaluation of the World Bank's work over the past three years. The review of the Institutional Strategy Paper (ISP) for the World Bank for 2000-2003 comes to the unremarkable conclusion that "substantial progress has been made, but [there are] a number of areas where further work will be needed". Areas where DFID indicated disappointment included:

• IDA resources "should be more heavily targeted on poor countries";
• Country Assistance Strategies should be better aligned with achievement of the Millennium Development Goals;
• Poverty Reduction Strategies require "widening the breadth of consultation, and improving the depth of analysis and realism of target-setting." PRSP equivalents should be prepared for middle-income countries;
• Private sector lending should emphasise low-income "riskier" countries, and show improved impact assessment;
• Cooperation with other donors, especially the UN, must be improved. "Tensions continue where staff from different institutions reach different conclusions. Tensions also arise from the Bank's special role in preparing Joint Staff Assessments of PRSPs."

During consultations held on the ISP for 2004-2007, UK civil society groups called for more specific indicators by which DFID's progress in reforming the World Bank could be monitored. Many groups expressed concern that between its role as overseer versus that of partner, DFID had drifted too far towards the latter. Highlights of the new ISP include:

DFID has committed to review progress on an annual basis in consultation with senior World Bank staff, the results of which will be made publicly available. They will report annually to parliament on this and on "the broad positions taken at the Bank board."

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Published: 15 November 2004 , last edited: 21 February 2005

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