The World Bank Report No: ISR14300 Implementation Status & Results Russian Federation Financial Education and Financial Literacy (P120338) Public Disclosure Copy Operation Name: Financial Education and Financial Literacy (P120338) Project Stage: Implementation Seq.No: 7 Status: ARCHIVED Archive Date: 16-Jun-2014 Country: Russian Federation Approval FY: 2011 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 07-Dec-2010 Original Closing Date 30-Jun-2016 Planned Mid Term Review Date 01-Oct-2014 Last Archived ISR Date 03-Nov-2013 Effectiveness Date 29-Jul-2011 Revised Closing Date 30-Jun-2016 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) Project development objectives are to: (i) improve the financial literacy of Russian citizens (especially, among the school-age and college students, and active and potential low- and middle-income users of financial services); and (ii) strengthen the foundations for improving consumer protection in financial services. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Development of financial literacy strategy and financial literacy and consumer protection monitoring 16.32 and evaluation Financial Literacy Capacity Building 32.01 Development and implementation of education programs and information campaign for improving 29.12 financial literacy Strengthening of consumer protection in financial services 32.55 Public Disclosure Copy Project Management 3.00 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Overall Risk Rating Moderate Moderate Implementation Status Overview The Project has been effective since July 29, 2011. An implementation support/supervision mission was conducted from April 23 to May 2, 2014. Page 1 of 9 The World Bank Report No: ISR14300 Overall Project Implementation: The project has been effective for 33 months as of April 30, 2014. Since the previous implementation support visit, it has started showing positive sign of progress. The total project disbursement has reached US$22 million (or 19.4%) of which US$ 4.9 million had been disbursed from the IBRD loan (equivalent to 19.66%). Thus the disbursement estimates projected during the last implementation support mission have been reached and disbursement levels are on target. The team expects that in the next 12 Public Disclosure Copy months Bank disbursement levels will rise significantly (totaling an additional US$20 mill.) due to the expansion of the pilot programs in the 8 new regions as well as the launch of multiple analytical works, development of National Financial Literacy Strategy, as well as the activities under the Funds of Good Ideas and the Media Campaign. Thus overall the project shows positive factual signs of progress. The core surveys and analytical studies for Component 1 and 4 have reached their next stages of testing/implementation. The critical amount of analytical works related to the development of various educational courses on financial literacy and improvement of teacher's capacity are scheduled to start throughout 2014. The first round of the Fund of Good Ideas was completed; 12 projects on financial education and 7 projects on financial consumer protection were selected. A review of the appropriateness of project target indicators and evaluation methodology was undertaken by both the Project team and the World Bank team in November 2013 to ensure that the indicators can all be monitored and be attributed to Project's interventions. Regional financial literacy programs and status of pilot regions: two out of three project pilot regions, Volgograd and Kaliningrad, have adopted medium-term regional financial literacy programs for 2011-2015/16, identified activities to be financed from the federal budget, and allocated the needed funds in the regional budgets. Eight new regions to be included in the project were selected on September 24, 2013 (Krasnodar Krai, Arkhangelsk Oblast, Tomsk Oblast, Republic of Tatarstan, Stavropol Krai, Saratov Oblast, Altai Krai, City of Moscow). Project Partners conducted a special workshop for the representatives of the newly selected regions and two existing pilot regions to share both the administrative and financial aspects of project implementation in order to facilitate and accelerate project implementation of activities in the new regions. Locations Country First Administrative Division Location Planned Actual Russian Fed. Not Entered Volgogradskaya Oblastí Russian Fed. Not Entered Tverskaya Oblastí Russian Fed. Not Entered Moscow Russian Fed. Not Entered Kaliningradskaya Oblastí Results Project Development Objective Indicators Public Disclosure Copy Indicator Name Core Unit of Measure Baseline Current End Target 1.1 % of active and potential low and middle Percentage Value 17.00 17.00 23.00 income users of financial services Date 23-Jan-2013 02-May-2014 01-Jun-2016 understanding the basics about retirement Comments The initial value had been The target value is approved calculated for the all Russian by Working Group and population and was corrected pending approval by Expert for the low- and middle- Group in Fall 2014 income sample Kaliningrad region Percentage Value 25.50 25.50 Page 2 of 9 The World Bank Report No: ISR14300 Sub Type Supplemental Volgograd region Percentage Value 8.90 8.90 Public Disclosure Copy Sub Type Supplemental 1.2 % of school-aged and college students in Percentage Value 40.00 40.00 45.00 participating regions understanding basics Date 30-Apr-2014 30-Apr-2014 01-Jun-2016 about retirement Comments 2.1 % of active and potential low and middle Percentage Value 63.00 63.00 70.00 income users of financial services Date 30-Apr-2014 30-Apr-2015 01-Jun-2016 understanding the trade-off between risk and Comments Breakdown by participating The initial value of the The target value is approved rewards inchoosing financial products regions is missing. indicator was slightly by Working Group and corrected by PIU based on pending approval by Expert additional calculations. Group in Fall 2014 2.2 % of school-aged and college students Percentage Value 55.00 55.00 75.00 understanding risk-reward trade-off Date 30-Apr-2014 30-Apr-2014 01-Jun-2016 Comments 3.1 Importance of financial cushion (low and Percentage Value 31.00 31.00 45.00 middle income) Date 30-Apr-2013 01-Oct-2013 01-Jun-2016 Comments The initial value of the The target value is approved indicator was slightly by Working Group and corrected by PIU based on pending approval by Expert additional calculations. Group in Fall 2014 Kalningrad region Percentage Value 36.80 36.80 Sub Type Supplemental Volgograd Percentage Value 24.10 24.10 Sub Type Public Disclosure Copy Supplemental 3.2 % of school-aged and college students Percentage Value 55.00 55.00 75.00 understanding importance of financial cushion Date 30-Apr-2014 30-Apr-2014 01-Jun-2016 Comments The target value is approved by Working Group and pending approval by Expert Group in Fall 2014 Page 3 of 9 The World Bank Report No: ISR14300 4. % of active and potential low- and middle- Percentage Value 19.00 19.00 24.00 income users of financial services confident in Date 30-Apr-2014 30-Apr-2014 01-Jun-2016 the quick and just resolution of disputeswith Comments The initial value had been The target value is approved financial institutions Public Disclosure Copy calculated for the all Russian by Working Group and population, and was corrected pending approval by Expert for the low- and middle- Group in Fall 2014 income sample. Kaliningrad region Percentage Value 27.20 27.20 Sub Type Supplemental Volgograd region Percentage Value 19.10 19.10 Sub Type Supplemental 5. % of active and potential low- and middle- Percentage Value 59.00 59.00 67.00 income users of financial services who Date 23-Jan-2013 30-Apr-2014 01-Jun-2016 compare alternatives before obtaining a credit Comments The target value is approved by Working Group and pending approval by Expert Group in Fall 2014 Kaliningrad region Percentage Value 65.30 65.30 Sub Type Supplemental Volgograd region Percentage Value 73.00 73.00 Sub Type Supplemental Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Public Disclosure Copy 1.1 Financial literacy strategy is developed and Text Value No FL strategy In process FL Strategy developed agreed within key stakeholders Date 28-Dec-2010 30-Apr-2014 28-Dec-2011 Comments Short-list of the consultants is completed. 1.2 Requirements to education programs are Text Value No In process Education programs approved approved by the Expert Board Date 28-Dec-2010 30-Apr-2014 28-Dec-2011 Comments The Consultant's final report has been approved by MinFin. Page 4 of 9 The World Bank Report No: ISR14300 1.3 Three rounds of the FL assessment are Text Value No FL assessment In process Three FL assessments done conducted in YR 1,3,5 in years 1,3 and 5 Date 28-Dec-2010 30-Apr-2014 31-Dec-2015 Public Disclosure Copy Comments The baseline survey was conducted. The first results were submitted. The consultant's third stage report has been sent for additional experts' examination. 1.4 Two rounds of the Consumer Finance Text Value No CFS assessment In process Two CFS assessments done Survey are conducted in YR 2,5 in years 2 and 5 Date 28-Dec-2010 30-Apr-2014 31-Dec-2015 Comments 1.5 Ministry of Finance establishes dedicated Text Value No FL Working Group Yes FL Working Group working group on financial literacy and established consumer protection Date 01-Sep-2010 30-Apr-2014 31-Dec-2015 Comments 1.6 Amendments to the federal legislation to Text Value Amendments to laws not In process Legal framework amended. provide for effective consumer protection in prepared financial markets and financial literacy are Date 28-Dec-2010 30-Apr-2014 31-Dec-2015 prepared Comments Recommendations on the draft law on Ombudsman are prepared. Approval by federal officials are pending. 2.1 # of regional FL development programs Number Value 0.00 2.00 10.00 implemented with the Project support Date 28-Dec-2010 30-Apr-2014 31-Dec-2015 Comments Regional FL programs are approved in Kaliningrad (23.11.2011) and Volgograd (14.12.2010) regions. Public Disclosure Copy 2.2 # of teachers of the relevant subjects Number Value 0.00 359.00 7700.00 trained in the Project regions (three pilot and Date 28-Dec-2010 30-Apr-2014 31-Dec-2015 eight participating regions) Comments 359 teachers trained under The initial target value Kaliningrad regional FL (11,000) was changed by program for the period Working Group. The target 2012-2014 value is approved by Working Group and pending approval by Expert Group in Fall 2014 Page 5 of 9 The World Bank Report No: ISR14300 2.3 # of teachers of the relevant subjects Number Value 0.00 0.00 15000.00 trained in additional regions (in addition to Date 28-Dec-2010 03-Oct-2013 31-Dec-2015 three pilot and eight participating regions) Comments Indicator was dropped as Indicator dropped as there are Public Disclosure Copy there are no additional no additional regions to the regions to the two monitored two monitored above above 2.4 # of financial literacy specialists Number Value 0.00 0.00 600.00 (Methodists) trained in the Project regions Date 28-Dec-2010 30-Apr-2014 31-Dec-2015 (three pilot and eight participating regions) Comments 2.5 # of financial literacy specialists Number Value 0.00 0.00 600.00 (Methodists) trained in the additional regions Date 28-Dec-2010 30-Apr-2014 31-Dec-2015 (in addition to three pilot and eight participating Comments Indicator was dropped as Activities not started yet regions) there are no additional regions to the two monitored above 2.6 FL information and educational portal Text Value No Portal In Process Portal established and established and fully operational operating Date 28-Dec-2010 30-Apr-2014 31-Dec-2015 Comments ToR is approved. Republication of the Request for Expressions of Interest is completed. 3.1 # of educational programs developed Number Value 0.00 1.00 40.00 nationally Date 28-Dec-2010 02-May-2014 31-Dec-2015 Comments The concept of extracurricular programs for school and primary VET students are under consideration of experts. Educational programs at work place are Public Disclosure Copy being tested in three regions. 3.2 National information campaign designed Text Value No In process Yes and launched Date 28-Dec-2010 30-Apr-2014 31-Dec-2015 Comments The consultant is to be selected by May 2014 Page 6 of 9 The World Bank Report No: ISR14300 3.3 # of financial literacy improvement Number Value 0.00 12.00 50.00 initiatives supported through the Fund of Good Date 28-Dec-2010 30-Apr-2014 31-Dec-2015 Ideas Comments The first round of the Public Disclosure Copy Competition has been completed 3.4 % of active and potential low and middle Number Value 38.00 38.00 40.00 income users of financial services Date 30-Apr-2014 30-Apr-2014 01-Jun-2016 understanding the personal responsibility for Comments The initial value was slightly The target value is approved covering individuals losses in financial markets corrected by Working group by Working Group and based on additional pending approval by Expert calculations Group in Fall 2014 Kaliningrad region Percentage Value 51.20 51.20 Sub Type Supplemental Volgograd region Percentage Value 24.20 24.20 Sub Type Supplemental 3.5 % of the population that have Number Value 35.80 35.80 understanding of importance of voluntary Date 01-Oct-2013 30-Apr-2014 savings for retirement Comments Indicator dropped as it duplicates PDO indicator on pensions 3.6 % of active and potential low and middle Number Value 58.00 58.00 62.00 income users of financial services considering Date 01-Oct-2013 30-Apr-2013 01-Jun-2016 the refusal of loan repayment as inappropriate Comments The target value is approved deed by Working Group and pending approval by Expert Group in Fall 2014 Kaliningrad region Percentage Value Public Disclosure Copy Sub Type Supplemental Kaliningrad region Percentage Value 63.00 63.00 Sub Type Supplemental Volgograd region Percentage Value 52.70 52.70 Sub Type Supplemental Page 7 of 9 The World Bank Report No: ISR14300 4.1 A system of hotline call centers to advise Number Value 0.00 0.00 262.00 consumers on financial issues is established Date 28-Dec-2010 30-Apr-2014 31-Dec-2015 and operational Comments Project partners consider The initial target value was Public Disclosure Copy alternatives for this activity revised by Working Group and pending approval by Expert Group in Fall 2014 4.2 Special system for submitting and handling Text Value No No Yes financial consumer complaints in e-format is Date 28-Dec-2010 30-Apr-2014 31-Dec-2015 developed Comments Project partners consider alternatives for this activity 4.3 An e-library (infotheque) on topical CP Text Value No In process Yes issues is established and operational Date 28-Dec-2010 30-Apr-2013 31-Dec-2015 Comments Project partners consider to postpone the activity till the official status of RPN will be clarified 4.4 Special consumer protection in financial Text Value No unit in CPS No Unit created and operating services unit established on the national level Date 28-Dec-2010 30-Apr-2014 31-Dec-2015 and staff in place Comments 4.5 # of consumer protection initiatives Number Value 0.00 7.00 50.00 supported through the Fund of Good Ideas Date 28-Dec-2010 30-Apr-2014 31-Dec-2015 Comments The first round of competition is completed 4.6 % of active and potential low- and middle- Number Value 38.00 38.00 44.00 income users of financial services who took Date 01-Oct-2010 30-Apr-2014 01-Jun-2016 any administrative/legal action after having Comments The initial baseline value was The target value is approved discovered a deceit by a provider of a financial service slightly corrected by Working by Working Group and Group based on additional pending approval by Expert calculations. Group in Fall 2014 Public Disclosure Copy Kaliningrad region Percentage Value 29.50 29.50 Sub Type Supplemental Volgograd region Percentage Value 34.90 34.90 Sub Type Supplemental Data on Financial Performance (as of 01-Apr-2014) Page 8 of 9 The World Bank Report No: ISR14300 Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P120338 IBRD-79830 Effective 07-Dec-2010 14-Mar-2011 29-Jul-2011 30-Jun-2016 30-Jun-2016 Public Disclosure Copy Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P120338 IBRD-79830 Effective USD 25.00 25.00 0.00 4.91 20.08 20.00 Disbursement Graph Key Decisions Regarding Implementation Project Partners agreed to conduct a Mid-Term Review in the Fall of 2014 and organize necessary preparatory activities. Updating the performance indicators will be a key objective. Public Disclosure Copy Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Page 9 of 9