9:10 - 10:45 Session Five Partnering with the World Bank Group Chair :

2. 9:10 - 10:45 Session Five • Partnering with the World Bank Group • Chair: • Peer Stein, Director, Access to Finance Advisory, IFC • Presenter: • Traci Phillips, Advisor, CFP, WB • Panel: • Elisabeth Gruber, Senior Advisor, Federal Ministry of Finance, Austria • Diane Barclay, Director, World Bank and Results Section, AusAID, Australia • Ann Miles, Director Microfinance, Mastercard Foundation, USA

3. Partnering with the World Bank Group Traci Phillips Advisor Concessional Finance and Global Partnerships World Bank Session 5 May 22, 2013 The World Bank Group

4. Why the WBG Partners with Others Overarching reasons: • benefit from/leverage the experiences of others • coordination and/or pooling of resources for a stronger response Examples: • Dialogue, Advocacy, Knowledge Sharing • Operational Coordination • Delivery of Global Public Goods • Collective Action (e.g. crisis response, food security)

5. Types of Partnerships and Partners • Ongoing institutional relationships, such as IMF, other MDBs, UN system • Operational partnerships at the country level • Partnership Programs (PP) – global or regional in scope, thematic in nature • Types of partners include: • Governments (donors and client countries) • Other international organizations • Newer actors such as CSOs, foundations, and the private sector

6. Partnership Programs Structure Decision-Making or Advisory Partnership Body Funding Mechanism Program Management and Administration of Funds Partnership Program Management Unit/Secretariat Global/Regional Level Activities Implementation of Development Activities Country Level Activities Illustrative Partnership Program Structure Key Characteristics of Partnership Programs: • Partnership Bodies facilitate shared decision-making on: • strategic priorities • program objectives • allocation criteria • results frameworks • Multi-Country Scope to address: • global public goods • other global/regional issues • collective action • perceived gaps in aid • Dedicated financing • IBRD/IDA Trust Funds • FIFs • Bank grants

7. Partnership Programs Structure : Options • Large, broadly multilateral programs supported by FIFs • Most appropriate in responding to major global priorities (GEF, CIFs, GAFSP, etc.) • Bank—by acting as Trustee and Secretariat—can play a convening function. • Engage multiple agencies in implementation. • Trust Funded programs implemented in the World Bank Group • Donors may be highly engaged (CGAP, EITI-TAF) or lightly engaged (e.g., donor council that meets once a year, focused mainly on strategy). • Potential cost of additional engagement needs to be justified by a robust partnering objective. • Innovative public-private partnerships • Mastercard Foundation/IFC Financial Services for Africa. • Innovative Finance mechanisms, such as the Advanced Market Commitments (AMC).

8. WBG Strategic Framework • End Extreme Poverty • the percentage of people living with less than US$1.25 / day to fall to 3 percent by 2030 • Promote Shared Prosperity • faster income growth of bottom 40% population in every country WBG Goals Achieving the goals must be sustainable in the long term – environmentally, socially and fiscally • Serve Poor and Vulnerable People Everywhere • focus on poor people in all countries Building Blocks • Work as One World Bank Groupleveraging institutional knowledge and financing • Recognize the Diversity of Clients • country, private sector, global • Exercise Dynamic Selectivity • link to goals, comparative advantage, impact • Focus on Development Solutions • based on goals, client needs, comparative advantage, evidence

9. Lifecycle Challenges • Past efforts to strengthen selectivity have not translated to clear process to consider at the institutional level • Potential for duplication among PPs or substitution with other instruments • Striking the right balance among potential tradeoffs • Country v. Global approach (i.e. bottom-up “demand” v. top-down “supply”) • Resource tradeoffs: new opportunities v. core lending functions • Larger more inclusive decision-making v. leaner more efficient structure • Accountability: to traditional WBG structure (Senior Management and the Board) v. partnership body • Customized approaches • need to capture lessons learned • Develop feedback loops

10. Selectivityfor Partnership Programs • Goals • Ensure the Bank builds on its own strengths when participating in Partnership Programs • Maintain flexibility to respond to emerging needs • Balance institutional priorities against international demands • PP that is relevant to country-level development impact • Effectiveness and efficiency of governance structures

11. Selectivityfor Partnership Programs • Strategic Selectivity Principles • Need for collective action or close coordination involving the Bank • Participation consistent with strategic priorities, comparative advantage • Avoid aid fragmentation, proliferation of financing mechanisms • Participation should ultimately benefit client countries • Partners should share a commitment to common objectives • Design Principles • Overarching: level of accountability must be aligned with level of control • Roles and responsibilities are clearly articulated and agreed among partners • Participation on PP bodies should be properly framed (Terms of Reference) • Funding mechanism should be well suited to the PP needs

12. IFC Example of a Broad Based Partnership Approach The G20 Global Financial Inclusion Agenda • Delivery Mechanism: Global SME Finance Initiative • Results & Impact: 200,000 SMEs, 50,000 Women SMEs, $8 billion SME loans, 1 million jobs. • Leverage: $64mn for concessional tranche brings over $500mn IFI funding. $56mn for advisory brings greater client & other partner funding. • Scalability: Contributions from DFID and EIB; alongside private sector clients: banks and MFIs. • Efficiency: Economies of scale for project implementation, technical expertise. • Effectiveness: Combination of Investment and Advisory Services for holistic solution.

13. Questions for Discussion • What makes partnering with the WBG an attractive proposition? • How can we work together to create Partnership Programs that are strategically aligned with Bank priorities but mutually beneficial for all partners? • Under what circumstances should the WBG and its partners create new programs rather than make use of existing mechanisms? • How can we more effectively include non-traditional partners such as CSOs, foundations and the private sector?

14. Annexes

15. Learning • Publish Evaluation Results • Annual Conference and Industry Events • Technical Research • Knowledge Guides and Practice Notes Example of Partnership Centered on Learning – The MasterCard Foundation Program Level Evaluation Cross-Cutting Thematic Evaluations Project Evaluations Benchmarking Project Level Monitoring Project Level Monitoring Technical Research to Inform Approach Key Learning Questions Critical success factors for scaling financial access for the poor? Reasons for failure? What kinds of interventions create most access? What can we learn about the impact on clients?