IDA19 Second Replenishment Meeting Addis Ababa, Ethiopia – June 18-20, 2019 Co-Chairs’ Summary 1. IDA Deputies and Borrower Representatives (collectively, the Participants) met on June 18-20, 2019 in Addis Ababa, Ethiopia for the IDA19 Second Replenishment Meeting. The meeting was co-chaired by Ms. Kristalina Georgieva, Chief Executive Officer of the World Bank, and Ms. Antoinette Sayeh, external IDA19 replenishment co-chair. Participants welcomed an observer from Bulgaria. 2. Opening remarks by the President of Ethiopia, H.E. Sahle-Work Zewde, highlighted the role of IDA in supporting Ethiopia’s remarkable development progress and poverty reduction over the last decade. Ms. Georgieva highlighted the IDA19 context: despite substantial progress on global poverty reduction, the pace of progress is slowing – and even reversing - in many IDA countries, particularly in those affected by conflict. With the target for the Sustainable Development Goals (SDGs) only 10 years away and in response to partners’ calls for ambition to change this trajectory, she described Management’s IDA19’s proposals as a strategy to concentrate IDA’s focus on growth, people and resilience. She urged Participants to support a strong IDA19, citing IDA’s ability to bring tailored solutions to its clients, its leadership, its commitment to transparency, and its long track record of delivering results on the ground. Ms. Sayeh emphasized that IDA is a key instrument in the global effort to achieve the SDGs and that adequate IDA19 financing is critical to accelerate progress. She highlighted the key messages she heard in her bilateral consultations with IDA Participants, notably: the critical importance of the jobs agenda; the priority attached to both addressing rising debt risks in IDA countries; enhancing support for countries affected by fragility, conflict and violence (FCV); the need to contain the number of IDA19 windows and policy commitments; and the calls for even greater focus on impact. 3. The Prime Minister of Ethiopia, H.E. Abiy Ahmed, addressed the group on the last day. He also underscored Ethiopia’s impressive development outcomes and the continued importance of IDA as a partner, which he described as “effective, innovative and transformative”. IDA19 Special Themes 4. Participants dedicated significant time and attention to each of the IDA19 Special Themes detailed below. Overall, Participants broadly welcomed the proposals by Management, while calling for greater ambition to better showcase how IDA can deliver for IDA clients while reiterating the view that IDA19 should build upon the transformative foundations of IDA18. At the same time, it was also recognized that achieving meaningful impact would require retaining focus and setting priorities. Management took close note of the feedback received, reiterated its intention to continue to implement the commitments made under IDA18, and committed to strengthen the narrative and refine the policy commitments in the draft IDA19 Deputies’ Report to be considered at the next IDA19 meeting in October. 5. On Jobs and Economic Transformation (JET), Participants emphasized the urgency and need for greater ambition in generating more and better private sector jobs and reducing the need for economic migration through broad-based economic growth and transformation in IDA countries. Participants highlighted a number of ways to help expand opportunities for growth and -2- job creation such as enhancing productivity in both formal and informal sectors, reducing barriers in manufacturing and agribusiness, and technological innovation, – including adaptation to climate change, development of quality infrastructure, and investments in physical and human capital and institutions. Participants underscored the need for IDA to tailor support to specific country contexts and encouraged coordination with public (including multilateral) and private partners through a common voluntary platform led by country authorities, and using global and regional initiatives such as the Continental Africa Free Trade Area, Integrated National Financial Frameworks (INFFs) and Compact with Africa. Some Participants called on IDA to set more ambitious targets beyond the current proposed commitments in infrastructure and to enhance IDA’s coordination with existing mechanisms. 6. Participants welcomed the JET framework, its two pillars, as well as its priorities of linking local markets to global and regional value chains, increasing connectivity through quality infrastructure and digital links, developing entrepreneurship and skills including through vocational and on the job training, and enhancing inclusiveness to focus on the different needs of women and men, girls and boys, and people with disabilities. They also welcomed the “Whole of World Bank Group (WBG)” approach across global practices and IDA, IFC and MIGA and called for closer alignment of the JET framework with all IDA windows including explicit linkage to the IFC/MIGA Private Sector Window (PSW). Some Participants called for increased transparency of the PSW investment decision-making process for individual PSW investments given the subsidies involved. On Policy Commitments, Participants welcomed Management’s proposed revisions and additions offered at the start of the meeting in response to Participants’ early guidance: adding a focus on resilient, sustainable and productive cities; systematically embedding a JET focus in country programs and strategies; piloting country-led platforms with a JET focus; and focusing on specific sectors identified as priorities through Country Private Sector Diagnostics. Participants also called for a stronger focus on youth, attention to additional issues such as labor market indicators and institutions, social protection frameworks working with partners such as the ILO, and social dialogue to ensure that not only jobs, but good quality jobs, are created. Participants highlighted the challenge of economic migration due to lack of economic opportunities and Management agreed to explore ways to enhance IDA programming with a migration lens. The blue economy and fisheries, and a more prominent place for health and education in the skills agenda were also issues highlighted. 7. On Fragility, Conflict and Violence (FCV), Participants welcomed the pivot towards prevention and supported the proposed alignment between the IDA19 special theme and the forthcoming WBG FCV Strategy. They pointed to the need for IDA to review operational policies and procedures to ensure that they are fit for purpose to achieve development aims in FCV contexts. Additionally, the importance of cooperation with partners, particularly the UN system, was highlighted both in relation to analytical and operational work. They also broadly supported the scope and ambition of the seven proposed policy commitments, including the commitment to develop regional programs for the Horn of Africa, Lake Chad and Sahel. There were some calls to refine proposed Policy Commitment 1 to ensure that Risk and Resilience Assessments (RRAs): involve partners; address gender, demographics, migration, climate change as a conflict accelerator and social inclusion; better identify conflict prevention-related opportunities; and make more operationally relevant recommendations (see attachment for list of Policy Commitments as proposed for the June meeting). Management agreed to reflect these points in the IDA19 Deputies’ Report. In response to requests related to proposed Policy Commitment 3, Management agreed to -3- further strengthen human capital interventions in FCV settings, in particular for women and girls, and on issues beyond GBV. Several Participants also requested that this policy commitment incorporate a more explicit focus on disability. On proposed Policy Commitment 5, there were calls to look at wider implementation and supervision capacity support, beyond the use of technology. On proposed Policy Commitment 6, there was strong support for an ambitious scale- up of staffing while ensuring the right skill mix on the ground in IDA FCS. Management agreed to share the staffing targets by the Annual Meetings and to consider associated staffing as part of the WBG FCV Strategy. 8. Participants expressed strong support for the proposed FCV Envelope, particularly for the incentive and accountability structure, and called for a clear rules-based approach. Some Participants also expressed a desire for IDA to dedicate even more financing for FCV. There were some calls for the FCV Envelope’s eligibility documentation to consistently take into account inputs from the UN and to make it subject to Board discussion, which Management agreed to. In response to some calls for at least 50 percent of the FCV Envelope to be earmarked up front to the proposed Prevention and Resilience Allocation (PRA), Management urged caution – noting the demand-driven nature of the allocation, requirements for the countries to demonstrate accountability, and the difficulty in predicting the need to access the Envelope – but agreed to report back at IDA19 Mid-Term Review (MTR) on the share of allocations within the Envelope. Most participants were supportive of the proposed PRA eligibility criteria with its sharper focus and objectives and clear linkages with the WBG FCV Strategy. There were a few calls to review the proposed PRA eligibility criteria to ensure they capture upstream conflict risks before they manifest in violence. Here, Management also urged caution, emphasizing the need to maintain alignment with the framework of the WBG FCV Strategy, the need to prevent spreading financial resources too thin, and the availability of alternative options (e.g. countries experiencing fragility can apply to the Turnaround Allocation (TAA) with its incentive and accountability structure). It was also noted that larger allocations outside the performance-based allocation (PBA) model to fragile countries that do not demonstrate turnaround may undermine IDA’s long-standing PBA model designed to incentivize countries to improve their governance. Participants supported the Remaining Engaged in Conflict Allocation (RECA), with some calling it to be larger and others appreciating its exceptional nature. There was a reminder for IDA to employ strong environmental and social safeguards also in these environments. There were also some calls for IDA to demonstrate its comparative advantage when it finances UN agencies directly using IDA funds on an exceptional basis, which Management confirmed would be articulated further in the FCV Strategy. On the TAA, Participants expressed broad support. Lastly, Participants expressed strong support for the proposed refinements to the Refugee Sub-Window though some raised questions around the change in the PBA contribution level. 9. On Climate Change, most Participants welcomed the broad directions of this special theme under IDA19, especially the focus on adaptation and resilience as well as the shift from inputs-based to outcomes-based commitments. At the same time, many called for IDA to raise the ambition in the policy commitments. Many Participants advocated increasing the climate co- benefits target from 28 percent toward 35 percent, while others noted the trade-offs between setting such a target with enhancing investments in human capital and FCV operations which tend to have -4- lower co-benefits. In addition, many Participants called on IDA to raise its target for renewable energy generation, consider targets on energy access including off-grid, and increase efforts in reducing CO2 emissions. Management agreed to consider a target of 10 GW in renewable energy generation through the WBG direct, indirect and enabling support. On proposed Policy Commitment 5, Management agreed to increase the number of IDA countries supported in their Nationally Determined Contributions (NDCs) from 10 to 15, in response to urging by many Participants to provide more support. There were some calls on strengthening climate risk analytics, risk reduction, and concessional climate and disaster risk finance and insurance solutions including through programs within the InsuResilience Global Partnership (e.g. Global Risk Financing Facility (GRIF)). Many Participants stressed the importance of IDA continuing its work on other environmental challenges such as biodiversity, and some also mentioning the blue economy. Given the specific impact of climate change on small islands states, Participants encouraged IDA to provide continued and targeted support for the small island states. Lastly, Participants emphasized the need to work with other climate funds and mobilize private finance. Management agreed to review the policy commitments and supporting narrative. Specifically, Management agreed to look into increasing the number of development policy operations focused on climate change, improving national budgeting, as well as opportunities to support resilient infrastructure, and to look into their gender and climate action plan to determine how they can raise its ambition for IDA19. 10. On Gender and Development, Participants supported the proposed two-track approach to deepen the implementation of the WBG Gender Strategy and the strategic leveraging of the theme’s interlinkage with other special themes, while calling for greater ambition. Some Participants called for commitments on women’s access to more and better jobs and assets (including land), provision of social protection and support to countries in realizing the demographic dividend. Some Participants underscored the need for more work to increase women’s access to justice, to support female heads of households, to better address gaps between women and men in infrastructure projects, to increase the target of the gender tag, to adopt effective policies and operations that address sexual and gender-based violence, and to further report on IDA’s work on girls’ education. There were some calls for the Deputies Report to refer to progress against commitments at the Putting People First Summit, particularly on adequate and timely reporting. Some Participants encouraged IDA to incorporate gender equality considerations into all infrastructure projects across all stages of the project life cycle, in line with the G20 Principles for Quality Infrastructure Investment, and specifically a new policy commitment on supporting women’s economic empowerment in infrastructure projects. Management agreed to reflect on feedback received, while noting that the proposed IDA19 policy commitments intentionally focus on new frontier areas where IDA could break new ground. Management also committed to reflect on increasing the level of ambition for the gender tag, to look at merging commitments 4 and 5 and to include a policy commitment on gender and infrastructure. Management reiterated its commitment to continue implementing earlier gender commitments (under IDA18), with a strong focus on areas such as education, jobs, assets, and voice and agency. Management agreed to further highlight progress in these areas and others. Some Participants asked for sex disaggregation of a number of result indicators and Management committed to do so where data is available. 11. On Governance and Institutions, Participants broadly supported the comprehensive and inter-connected approach to this special theme in IDA19, but also indicated that the level of -5- ambition could be higher for targets across several of the proposed policy commitments. On debt transparency and management, there were requests for assisting more countries and for minimum data disclosure requirements, including on debt stocks. On domestic resource mobilization, there were calls for greater focus on outcomes and attention to tax equity, as well as on supporting all clients and collaborating closely with OECD, IMF and the UN. On financing human capital investments, there were calls to do more on health systems, going beyond emergency response, as well as suggestions for the implementation and financing of pandemic preparedness plans. On citizen engagement, there were calls to do more on transparency, civic engagement, and social accountability, as well as requests for clarification on how multi-stakeholder platforms will strengthen citizen engagement and what role IDA will play. There were also calls to keep IDA18 policy commitments on procurement capacity building. On illicit financial flows (IFFs), several Participants called for more ambitious targets and more comprehensive solutions, and specific commitments on corruption beyond IFFs and tax evasion, as well as calls for greater focus on the rule of law in IDA countries. They also highlighted the need for high priority to be placed on political economy analysis and strengthening core governance functions in FCS, including crisis preparedness. On data and analytics, there were calls to deepen data disaggregation by both sex and disability, which Management agreed to do, where such data is available. IDA19 Cross-cutting issues 12. In a discussion led by WB Global Practice Vice Presidents on IDA19 cross-cutting issues of debt, disability, human capital and technology and their linkages to the SDGs, Participants underscored the importance of the cross-cutting issues, emphasizing the need to better embed disability in the policy commitments including under the FCV and gender special themes, and in the results measurement system, where possible. There were also calls to advance quality infrastructure and to better integrate a migration lens into IDA country programming. Participants stressed the importance of a multi-faceted approach to addressing demographic issues, to cover economic migration, forced displacement, and internally displaced persons (IDPs). Participants urged IDA Management to further strengthen interlinkages across special themes, paying attention to challenges of migration and disability inclusion in IDA recipient countries. Addressing Debt Vulnerabilities in IDA Countries: Options for IDA19 13. Participants acknowledged that rising public debt levels in IDA countries present a critical challenge to sustainable growth, and emphasized the importance of strengthening fiscal policy, debt management and debt transparency of IDA countries to help mitigate debt vulnerabilities. They took note of the proposed debt-related policy commitments and expressed overall support for the proposed Sustainable Development Finance Policy (SDFP). Regarding the SDFP’s Debt Sustainability Enhancement Program, Participants supported the proposed approach to: (i) introducing appropriate and fair incentives for countries to take policy steps to reduce debt vulnerability risks; while (ii) taking into account differing needs and capacities of IDA countries, including small states and countries affected by FCV. They emphasized the importance of tailoring policy actions to the country context, strengthening the governance of the proposed SDFP, adopting clear rules for the application of the incentives and using broadly agreed minimum standards on debt transparency to ensure rigor and consistency in implementation. Many Participants pointed to the need to combine these incentives with provision of adequate -6- opportunities for capacity building and taking policy actions for countries to enhance debt transparency and better manage fiscal and debt policies. Participants noted that this could be supported by IDA’s financial resources. Regarding the SDFP’s Creditor Outreach Program, Participants supported enhancing alignment on debt initiatives and policies with the IMF and other Multilateral Development Banks (MDBs), particularly the African Development Bank, other international financing institutions, the Paris Club, the G20 and the OECD, and encouraged expanded outreach efforts to non-Paris Club financing entities. Some emphasized that the outreach program should complement but not substitute the existing fora for official debt coordination. In response to questions about SDFP governance and implementation, including on the future role of non-concessional borrowing ceilings, Management will provide an annex to the Draft IDA19 Deputies’ Report. Some Participants encouraged IDA and IMF to engage in further work and guidance to understand debt financing structures and manage the potential risks associated with collateralized and secured debt, including in the context of the IDA countries understanding the importance of not violating the IDA Negative Pledge Clause (as well as the negative pledge clauses of other MDBs). Lastly, Management will provide an update on the NCBP review at the meetings in October. IDA19 Results Measurement System (RMS) 14. Participants underscored the importance of the RMS in communicating IDA results to donor principals as well as for learning and for management decisions. They generally supported the proposed IDA19 RMS, welcoming its role in capturing IDA’s contributions, even though they recognized the challenges with aggregation and attribution. Participants proposed adjustments to the RMS in a number of areas, including possible new indicators on jobs, disability, climate adaptation and resilience, rule of law and justice, and further disaggregation (by sex, age and disability). They called for continued efforts to align the RMS with the SDGs and harmonization of indicators with other MDBs for comparability. Finally, some Participants encouraged IDA to continue moving beyond outputs to report on intermediate and higher-level outcomes to communicate IDA’s story and results to taxpayers in shareholding and developing countries. IDA19 Request for Resources (IDA19 Ask) 15. Participants expressed support for a range of financing scenarios for IDA19, with feedback from some that the low scenario (US$72 billion) is inadequate to support the needed ambition reflected in proposed initiatives and Special Themes. Some Participants requested an additional scenario between the low and base (US$80 billion) scenarios, with several also asking for another additional scenario between the base and high (US$86 billion) scenarios. Many Participants stressed that IDA19’s policy ambitions, and the urgency to move towards the SDGs, should be matched by ambitious financing scenarios. While Participants broadly referred to the base case scenario as the appropriate scenario, several noted that only the high scenario would enable IDA to maintain the current level of per capita support in real terms although a few Participants noted the high scenario was unrealistic. Participants broadly supported the level of concessionality in the proposed scenarios with some raising concerns about the low level of non-concessional financing in the base scenario. Management committed to calibrate the range of scenarios and prepare an update for the October meetings. In addition, Participants welcomed the strengthening of IDA core resources and the proposed simplification of IDA’s allocation framework and reiterated the -7- importance of ensuring a consistent and rules-based approach to the use of the different windows and allocations. They welcomed presentations by each of the six Regional Vice Presidents on the strong demand for IDA resources across regions, as well as the alignment between country demands and IDA’s focus. 16. Many Participants welcomed the proposal to graduate Mongolia and Moldova from IDA after the IDA18 cycle as a positive sign of their development progress, with some noting that more time would be helpful to confirm the readiness of these countries at the next IDA19 replenishment meeting, and some encouraged IDA to strengthen consultation with the governments to ensure smooth transition. Participants also underscored the need to ensure adequate IBRD support for IDA graduates in line with the capital increase commitments and Management reiterated its commitment to do so. 17. On the Regional Window, Participants expressed broad support for a proposed scale-up in resources to support regional priorities, including identified sub-regions at risk and the blue economy. Some Participants requested greater information on the proposed scale-up for the Window and asked Management to present at the October meeting how to ensure a strategic and impactful use of this scale-up. They also noted the importance of the proposed sub-regional approach (covering among others the Sahel, Lake Chad and Horn of Africa), with some members underlining the need to ensure appropriate access to the resources for the three mentioned sub- regions, taking into account their different contexts and readiness. They also underscored the need to provide support to priorities in other sub-regions (e.g. including to sub-regions composed of small states such as the Caribbean or the Pacific Islands). Participants also endorsed several proposals for the Regional Window, including: the proposal to allow use of Regional DPOs to support coordinated policy reforms across countries, with the amount capped at 10 percent of the Regional Window amount; support for single country access to the Regional Window when adequately justified on the basis of spillovers that can be realized (e.g. for pandemics); and enabling the Regional Window to provide funding on credit terms to regional organizations to exclusively benefit IDA countries, which would also depend on the nature of support and adequate risk assessment of these organizations. 18. Participants welcomed the review of the IDA crisis response toolkit. They emphasized the importance of investment in preparedness and prevention. Some Participants asked for the development of crisis preparedness metrics and an ambitious target on disaster risk management co-benefits. On the Crisis Response Window (CRW), Participants broadly endorsed the proposed support for earlier action to mitigate slower-onset crises, with calls from some for more information on proposed triggering methodologies, governance and operational arrangements for covered events, i.e., disease outbreaks and food insecurity. Management will provide the additional information requested. Participants welcomed the proposed use of pre-approved Contingent Emergency Response Components (CERCs) for slow on-set crises and highlighted the importance of linking CERCs to better preparedness. Management also noted that such use of CRW funds – like all IDA funds – will require Board approval. Participants also called for better prevention and resilience interventions using core IDA and Regional Window, and to assist IDA borrowers and IDA staff to navigate the spectrum of tools in the IDA crisis toolkit. Participants also called for further operationalization of the Global Crisis Risk Platform, particularly regarding crisis analytics. Some Participants raised concerns about the reduction of the CRW envelope to US$2.5 -8- billion, but there was broad support to proceed with the proposed envelope, which can be adjusted at the IDA19 MTR if needed. 19. As a critical component of the JET agenda Participants expressed strong support for the continuation of PSW in IDA19 under the current framework and for the US$2.5 billion allocation. Some expressed their concerns on slow implementation of PSW in IDA18 and welcomed the proposed adjustment of funding allocation on PSW in IDA19 to reflect expected demand. They asked for an increased focus on programmatic approaches and transformational projects, including infrastructure operations, in line with the JET agenda, while retaining focus on the most difficult markets. Most Participants supported the grandfathering of country eligibility for one replenishment period and the proposal to extend eligibility to IDA Blend and Gap countries for programmatic platforms (under the condition that additionality is very strong and the approach is used selectively). Some Participants requested further information on how management will ensure the focus will remain on the poorest and most fragile countries, including through strict criteria. Most Participants welcomed the new Loan Purchase Obligation Instrument and Local Currency Loans for Third Parties with some - while supportive in principle - asking for more details to be provided through further consultations, given these products’ complexities. Lastly, Participants asked to continue being apprised of progress in pipeline development and for a PSW evaluation during the IDA19 period. Management agreed to undertake a PSW evaluation and would update Participants on its timing in October. 20. On Arrears Clearance, there was broad support to retain IDA’s capacity to provide arrears clearance support in IDA19, with some suggestions to review the sizing of the set-aside to accommodate potential arrears clearances during IDA19. IDA19 Financing Framework 21. In addition to the feedback on the financing scenarios outlined above, Participants expressed broad support for the implementation of the contractual acceleration for countries that graduated at the end of IDA17 (Bolivia, Sri Lanka and Vietnam) starting in IDA19, and concurrent suspension of the contractual acceleration for those proposed to graduate at the end of IDA18 (Mongolia and Moldova). Participants also supported Management’s proposal for the risk management products, namely the introduction of a commodity hedging intermediation product for IDA countries during the last year of the IDA18 period, and the proposed approach for developing IDA’s local currency solution instruments with the aim to learn from an in -depth analysis of this topic before the end of IDA18 and to discuss the proposal at IDA19 MTR. Moreover, Participants welcomed the statement from the WBG Chief Risk Officer and broadly supported Management’s recommendation on capital value protection to develop a US$15 billion swap program as a risk management strategy, while noting that it would be important to retain simplicity in communicating IDA’s model to key stakeholders and that swaps should only be used in a way that ensured maintaining AAA rating. Management will present the recommendation and an implementation plan to the Audit Committee and the Board. 22. With regard to the contribution modalities, there was broad support of the proposed IDA19 Concessional Partner Loan (CPL) framework, with broad support from Participants to broaden the currency choices for the CPLs to allow for greater use and some asking for optimizing grant -9- contribution incentives, while maximizing total contributions. Several Participants also supported moving to an 11-year encashment schedule to match the disbursement profile. Management committed to explore options on how these adjustments could be integrated into the IDA19 financing framework, while continuing informal consultations with Participants toward the draft IDA19 Deputies’ Report. 23. Management presented the way forward on the IDA19 Voting Rights Review and will seek endorsement for the review process by Governors at the 2019 Annual Meetings. A Report to Governors, including the guiding principles that reflect feedback from the April 2019 meeting, will be distributed for discussion at the Committee of the Whole. Next Steps 24. Participants’ feedback on the above issues to strengthen the narrative and refine policy commitments will be considered for the draft IDA19 Deputies’ Report for discussion in the fall, while setting necessary priorities and retaining sufficient focus to achieve meaningful impact. The next meeting with IDA Participants is tentatively scheduled for October 21-22, 2019, in Washington D.C. Attachment: IDA19 Policy Commitments as proposed for discussion at June 2019 Meeting (Annex of Overview Paper) -10- Annex 1: Proposed IDA19 Policy Commitments (as of May, 2019) Jobs and Economic Transformation (JET) 1. The World Bank Group (WBG) commits to the operationalization of joint International Finance Corporation (IFC)-World Bank (WB) diagnostics in 10 IDA countries through IDA and IFC interventions leveraging from among the WBG’s full suite of instruments, including technical assistance, policy advice, lending and investment. Creating and connecting to 2. At least 66 percent of agriculture and agribusiness projects in IDA countries include support for value chain markets development, through connecting producers to markets, technical assistance for meeting international standards and regulations, and supporting logistics and reducing trade costs. 3. IFC will aim to increase the share of its commitments in FCS-IDA17 & LIC-IDA17 countries, reaching 10-15 percent of its own-account commitments during the IDA19 cycle. 4. IDA commits to support in 10 IDA countries the modernization of infrastructure systems (e.g. power, transportation). 5. IDA commits to close the digital infrastructure gap by reaching 30 percent broadband penetration in at least 20 IDA countries in the African continent by 2023. 6. 50 percent of entrepreneurship projects will incorporate digital financial services and/or digital entrepreneurship elements – and ensuring they address particular constraints facing women and/or persons with Building capabilities and disabilities. connecting workers to jobs 7. IDA commits to support at least 12 IDA countries among the 30 with the lowest HCI with programs or policies to improve skills and employability, emphasizing the differential constraints facing young women and men. Cross Cutting 8. All Systematic Country Diagnostics (SCDs) of IDA countries at moderate or high risk of debt distress will address the country’s strategy for sustainably financing its development. 9. 85 percent of new jobs themed projects will track at least one jobs indicator and the IFC will track direct jobs and estimates of indirect jobs associated with all PSW investments. Fragility, Conflict and Violence (FCV) 1. All CPFs/CENs in FCS countries will address FCV drivers and sources of resilience, based on diagnostics such as Risk and Resilience Assessments or other FCV assessments. - 11 - 2. Develop and implement at least three regional programs (including in the Sahel, Lake Chad and Horn of Africa), which are informed by regional RRAs and focus on mitigating key fragility and security risks to promote engagement on the security-development nexus. 3. At least 20 IDA FCS eligible country portfolios will support improvements in social sector service delivery, with a focus on addressing the differential constraints faced by men and women, boys and girls. 4. By IDA19 Mid-Term Review, conduct a systematic review of refugee policy and institutional environments in countries eligible for the Window for Host Communities and Refugees (formerly called the Refugee Sub- Window) to inform further development support for refugee and host communities in these countries. 5. Support building client capacity in 50 percent of IDA FCS countries to use field-appropriate digital tools for collection and analysis of geo-tagged data; and apply this technology to enhance project implementation and coordination. 6. Deploy [XX] additional GE+ staff in IDA FCS. 7. Operationalize the FCV Envelope to provide enhanced and tailored support to IDA FCS. Gender Improving Human 1. IDA19 financing operations will support women’s empowerment through increased access to quality Endowments reproductive and adolescent health services in at least 15 of the 30 countries with the lowest HCI. Removing Constraints for 2. At least 60 percent of IDA19 financing operations for digital skills development will support women’s access More and Better Jobs to online work. Removing Barriers to 3. All of IDA19 financing operations for Digital Development will support women’s increased access to ICT Women’s Ownership of and services and take steps to increase women’s usage of services. Control over Assets Voice and Agency: Gender- 4. Support at least five IDA countries to invest in GBV prevention and response, delivering safe, quality, Based Violence: inclusive services through health systems. 5. Support at least five IDA countries to implement GBV prevention and response protocols as part of safe and inclusive schools. Governance and Institutions Pillar 1. Promoting Sustainable Financing Practices Promote debt transparency and 1. Implement an integrated and programmatic approach to enhance debt transparency through increased debt management coverage of public debt in Debt Sustainability Analysis (DSAs) and/or supporting debt transparency reforms1 in 15 IDA countries. - 12 - 2. Bolster fiscal risk assessments and debt management capacity in 20 IDA countries through a scale-up of fiscal risks monitoring and/or implementation of debt management strategies. Strengthen domestic resource 3. Support 25 IDA countries that remain persistently below the 15 percent tax-to-Gross Domestic Product (GDP) mobilization threshold through interventions (including lending and technical assistance) targeted at country-specific binding constraints2 to tax policy and/or administration, including supporting efforts to broaden the tax base such as reducing exemptions and addressing Base Erosion and Profit Shifting (BEPS). 4. Support 10 IDA countries in the identification of key governance constraints to the development, financing, Strengthen infrastructure and delivery of quality infrastructure investments to inform the adoption of policies and/or regulations for governance enhanced infrastructure governance in a majority of these (five countries).3 B. Maximizing Impact of Public Service Delivery Support investments in people 5. Support 10 IDA countries among the 30 countries with the lowest Human Capital Index to strengthen human that promote efficiency, capital financing through improving the efficiency of public expenditures, and more effectively aligning growth, and equity expenditures with domestic financing and external resources in a sustainable manner. Enable universal access to 6. Support 10 IDA countries to adopt universally accessible4 GovTech solutions.5 public services through GovTech Strengthen pandemic 7. Support at least 25 IDA countries to strengthen the implementation of pandemic preparedness plans through preparedness interventions (including technical assistance, lending and investment). 1 Support to this commitment will draw from a suite of instruments including lending operations, diagnostics and technical assistance. 2 ‘Binding constraints’ refers to limited revenue administration capacity, corruption, political economy bottlenecks, and barriers with national and international tax policies. 3 The objective of good infrastructure governance is to deliver the right projects in a way that is sustainable, transparent, and accessible to users and citizens. Assessments will address policy and regulatory frameworks, transparency practices, and institutional capacity constraints at the center of government and in infrastructure services as provided by ministries, public utilities, and sub-national governments, State-Owned Enterprises (SOEs), and/or Public Private Partnerships (PPPs). 4 ‘Universally accessible’ means that GovTech services are designed so that they can be accessed, understood and used by all persons, regardless of disability, age, use of assistive devices, location or means of Internet access. It applies to hardware and software. 5 GovTech solutions include hardware, software, applications and other technology to improve access and quality of public services; facilitate citizen engagement (CivicTech) and improve core government operations. These include enabling analog complements to strengthen institutions for GovTech implementation, including devising related strategies, building capacity, passing related laws on e-government, data access and use; and developing regulatory frameworks to facilitate interoperability. - 13 - C. Building Confidence in Institutions 8. Increase provision of, access to and awareness of beneficial ownership information in 10 IDA countries. Tackle corruption and tax evasion to reduce illicit 9. Support six IDA countries in the adoption of Automatic Exchange of Information (AEOI) to reduce tax financial flows evasion. Support multistakeholder 10. Support 20 IDA countries to establish and strengthen platforms for multi-stakeholder engagement in policy approaches to policy making making and implementation to enhance public participation, accountability and responsiveness. and implementation Enhance the core functions of 11. Support 85 percent of IDA FCSs in the establishment and/or strengthening of core government functions government in IDA FCS through project financing.6 countries D. Building Better Data and Analytics Improve data for more 12. Support institutions and build capacity in 10 IDA countries to reduce gaps in the availability of core data for evidenced-based policy evidence-based policy making, including disaggregation by sex and disability where appropriate.7 making Climate Change Objective 1: Increase 1. IDA’s climate co-benefits share of total commitments will increase to 28 percent on average over FY21-23, Climate-related Financing and at a minimum, maintain parity between adaptation and mitigation finance. and Further Deepen Climate Mainstreaming 2. All IDA operations with more than 20 percent of climate co-benefits will incorporate at least one climate- related results indicator to increase the focus on climate outcomes. 3. Developing new resilience metrics designed to give increased incentives for more effective climate adaptation actions and pilot them in 20 IDA operations. 6 ‘Core government functions’ refers to: (i) public revenue and expenditure management; (ii) decentralization and service delivery (iii) government employment and public administration; and (iv) the rule of law. 7 Data disaggregation by sex and disability in the Data for Policy (D4P) package will be performed where it is appropriate, which corresponds to contexts where household survey data is amenable to disaggregation, specifically for data collected at the individual level. The D4P package will also continue promoting the production of sex and disability disaggregated statistics in countries where this is already available. - 14 - Objective 2: Boost Support 4. Support at least 25 countries to reduce the risks of climate shocks on poverty and human capital outcomes by on Adaptation and supporting programs that incorporate Adaptive Social Protection (ASP) into national systems or reduce climate Resilience threats to health. Objective 3: Drive Systemic 5. Support at least 10 IDA countries to systematically implement and/or update their Nationally Determined Impact at the Country Level Contributions (NDCs) or similar national action plans; where appropriate, set climate-related or NDC-based objectives and/or results indicators in the Country Partnership Frameworks (CPFs). Objective 4: Facilitate 6. Facilitate further penetration of renewable energy access in IDA countries by mobilizing concessional climate Economic Transformation finance and public and private investments for five gigawatt hours (GWh) of battery storage, and supporting through Low Carbon and generation, integration, and enabling infrastructure for six gigawatts (GW) of renewable energy in IDA Resilient Transition countries, which covers grid, distributed generation, mini-grids, and off-grid renewable energy.