92211 2014 Volume 4 Results in the Latin America & Caribbean Region Results in the Latin America & Caribbean Region TABLE OF CONTENTS 6 Foreword 56 Capturing the Impact of the 2010 Haiti Earthquake 9 Shared Challenges and Shared Resources in Brazil 60 Enhanced Stability in Honduras’ Financial Sector 13 Integrated Municipal Water Management in Uberaba, Brazil 64 Better Nutrition and Job Skills for Youth in Honduras 18 Productive Inclusion in Brazil 68 Jamaica Responds to HIV/AIDS 21 São Paulo Rethinks the Virtual Classroom 72 Mucho Corazón: Using a soap opera as a vehicle for financial education in Mexico 26 Peace and Development go Hand in Hand in Colombia 76 Timely Interventions to Reduce Climate Change Vulnerability in Mexico 31 Colombia Prepares to Meet Development Challenges 80 Mobile Factoring, a new solution to boost small farmers’ productivity 35 Towards a more Sustainable Agriculture Commodity Exchange in Colombia in Paraguay 39 Better Electricity Services in the Dominican Republic 84 Improving Service Delivery in Peru 43 Guatemala improves Maternal-Infant Health and Nutrition 87 Peru Improves Social Inclusion 47 Adoption of Clean Technology Practices by Micro, Small and Medium 94 Winning Investors Who Come Knocking,Trinidad and Tobago Enterprises 51 Improving Access to Water and Sanitation in Rural Haiti FOREWORD Interest for Latin America and the Caribbean comes from all People like Concepción Iberbuden, who now has income security and more productivity directions. The region’s recent impressive socioeconomic for his banana crop thanks to a simple and effective scheme that provides working capital development motivates much interest globally, and not the to small farmers in Paraguay. This publication has many such examples of actions that least from within the region itself, as countries increasingly are effectively transforming people’s lives for the better: from empowering communities look at themselves to learn about development solutions and to build peace through opportunities in Colombia, to providing safe water to thousands experiences. Perhaps like no other region, Latin America and the Haiti, promoting health in Jamaica, attacking malnutrition in rural Guatemala or helping Caribbean demonstrates that eradicating extreme poverty and Brazil raise millions of families out of poverty. promoting shared prosperity through broadening opportunities for all is possible. The World Bank is proud to be a part of these development stories. Results on the ground are what really counts. I hope that this publication will contribute to showcase how The region has been able to halve extreme poverty, lifting some 80 million people from growth with social inclusion creates a virtuous circle of progress. poverty and adding more than 50 million to the middle class, significantly reducing inequality in the process. Although the favorable global economic context was important for these results, they would not have been possible without the sound social and economic foundations laid by the majority of governments. Jorge Familiar Calderon But behind these outcomes are innumerable human stories, of people whose lives have Regional Vice President been transformed for the better by growth, jobs and government initiatives, many of them Latin America and Caribbean Region supported by the World Bank. World Bank Group PAGE 6 PAGE 7 BRAZIL Shared Challenges and Shared Resources Small Brazilian Cities Cooperate for Mutual Benefit Five municipalities in Rio Grande do Sul participated in an experiment in subnational partnerships to enhance municipal management and make on-the- ground infrastructure improvements. The cities were a mix of small and medium sized “hub cities,” ranging from 120,000 to 334,000 inhabitants, with a combined total population of 1 million. Challenge overcome continued economic decline, enhance In the southern half of the State of Rio Grande their competitiveness, and accelerate sustainable do Sul, overall economic growth has slowed and economic growth. However, the municipalities the benefits of growth are unevenly distributed. were not individually large enough to qualify for Approximately one fourth of the population are estimated to live below the poverty line. Approximately one fourth of The shared challenges for the cities in the region the population of the State include improving municipal governance, of Rio Grande do Sul are addressing rural and urban poverty, and improving estimated to live below the infrastructure service provision. In addition, the municipalities need strategic interventions to poverty line. PAGE 9 a cost-effective municipal level World Bank loan. long-term improvements in government capacity, Results construction of a water supply system in rural The Bank program of direct municipal lending most projects included investments in sector- Overall, the program successfully enhanced the Pelotas, enhanced treated water reserves, and in Brazil—begun in 2004—targeted much larger specific plans and tools to improve municipal municipalities’ capacity to provide services and expanded capacity for sewage systems and small cities, and these investments remained out of reach management. These were targeted especially implement infrastructure. Road infrastructure treatment plants. These investments resulted in for Brazilians in small cities and rural areas. towards the environmental, mobility, and water investments financed design, paving or reductions in water losses, energy consumption, supply and sanitation sectors, as well as towards rehabilitation of streets and installation of and maintenance costs. Finally, service providers long-term economic development. neighborhood drainage systems. The upgraded increased their revenues due to improvements in Solution urban roads were complemented by improved the accuracy of water and sanitation billing and In 2008, the Bank experimented with a new scale The main infrastructure investments were: sidewalks, landscaping, traffic safety measures, and reduced operation and maintenance costs. for subnational partnerships in Brazil. With the Rio • Highway and roads improvements. bikeways. The program also opened opportunities Grande do Sul Integrated Municipal Development • Public transport services improvements. for creative long term economic development in Program (PDMI), the Bank worked for the first World Bank Group Contribution • Expansion of the water supply, sanitation, partnership with the private sector. time with an integrated adaptable programmatic The Bank supported this program with a loan of and drainage networks and treatment. loan (APL) for five participating municipalities US$47.47 million. • Urban upgrading and housing and social Most innovatively, the program provided with a combined population of 1.04 million people, improvements in selected low-income important pilot experiences for small-scale of which 95 percent are urban and 5 percent are neighborhoods. activities aimed at improving local economic Partners rural. The five cities are Bagé, Pelotas, Rio Grande, development by: Counterpart contributions from the municipal Santa Maria, and Uruguaiana. Economic interventions included: • Facilitating access to microcredit. governments were partially financed through • New agricultural production centers in • Fostering research and development Federal Government resources, including PAC The overall strategy of the program was to enhance Bagé. through the construction of technology (Programa de Aceleração do Crescimento) funds. the capacity of municipal governments to improve • Implementation of the 9.5-acre Jockey parks. infrastructure, economic growth, employment Park in Santa Maria. • Supporting local and informal businesses Moving Forward opportunities, and governance over the whole • Provision of appropriate commercial space. and small producers under selected Because the program was designed with a long- scope of their areas. The program’s design was • Improvement in the overall business clusters. term vision of improved municipal infrastructure unique because it allowed each municipality environment. and capacity, many of its results will continue to to tailor its projects to its individual needs and • Facilitation of access to microcredit, The program’s water supply investments develop going forward, as plans are implemented. priorities. This included plans and studies for training and capacity enhancement covered installation of micro and macro meters, The program also invested in various planning tools long-term improvements and direct investments in activities targeted at selected clusters. rehabilitation of the water supply network, and instruments to guide public management in physical infrastructure. To bring about sustainable, PAGE 10 PAGE 11 urban development, transport, water sanitation integrated water sanitation and sewage and urban and sewage, and environmental management. Bank improvements in Santa Maria’s Km3 neighborhood, BRAZIL support during implementation of the program and are scheduled to be completed this year. after closing, includes intensive guidance in quality assurance and institutionalization of plans and Beneficiaries Integrated Municipal Water studies to assure that their results are translated into real benefits for the population. Beneficiaries include the governments and residents of the participating municipalities. Management in Uberaba, Brazil A set of interconnected solutions to address the full scope of water issues Almost all of the major interventions not completed during the program’s lifetime, including In 2004, the World Bank began large-scale program of direct lending to municipalities in Brazil to help l aocal governments build up their capacity and services in response to the 2000 Federal Fiscal Responsibility Law. Uberaba’s Agua Viva, one of the first round municipal loan projects, promoted broad quality of life improvements in the municipality through integrated water management projects that mitigated flooding in the city center, increased the percentage of treated wastewater by over 40 percent, created 37 hectares of new parkland, and strengthened local environmental institutions and education. Challenge treatment, meant that serious quality of life issues Uberaba, a city of 315,000 inhabitants in the state with regard to water remained. of Minas Gerais, faced major challenges in water management both in terms of institutions and Changing land use, often coupled with physical infrastructure. Although water supply deforestation and increased soil erosion, coverage was high at 99 percent and 95 percent contributed to loss of biodiversity and deteriorated of wastewater was collected, poor infrastructure, water quality of the Uberaba River. Direct especially the lack of virtually any wastewater discharge of untreated wastewater into the river Caracol Falls, State of Rio Grande do Sul. Photo: Tiago Fioreze, Wikipedia, CC©. PAGE 12 PAGE 13 resulting in regular, severe flooding that led to providing the inhabitants with much-needed green Results Changing land use, often property and commercial losses, snarling of traffic, spaces and leisure areas around the city’s water The wastewater conveyance systems for the coupled with deforestation and occasional injuries. bodies. Conquistinha and Uberaba wastewater treatment plants are completed, including the Uberaba and increased soil CODAU (Centro Operacional de Desenvolvimento To achieve better treatment rates and treatment plant working since 2009 and the erosion, contributed to e Saneamento de Uberaba), the local water utility, corresponding water quality, wastewater Conquistinha plant soon to be completed. loss of biodiversity and was not equipped to solve these issues with its conveyance systems for Conquistinha stream and Eighty-two percent of the planned 26 km of deteriorated water quality insufficient management structure, ineffective the Uberaba River were undertaken. To control wastewater interceptors in the city center have of the Uberaba River. metering, and historically low investments in flooding, a retention pond was constructed and been constructed, and the local utility has begun infrastructure. the area surrounding it was upgraded into a monitoring water quality regularly. When all works pleasant urban park setting; and micro and macro- are completed (expected by December 2015), 90 before it passed through the municipality was drainage works implemented in flood-prone areas percent of wastewater collected in Uberaba will be also a major problem. Water supply from the Solution (especially in the city-center). To enhance water treated—up from 44 percent at project closing, and Uberaba Reservoir and deep supplemental wells Taking into account the interlinked nature of the supply reliability, three water mains and over 2 percent before Agua Viva. was adequately treated and distributed, but high city’s water problems, Agua Viva designed a set of 100,000 micrometers were replaced, the municipal losses led to occasional rationing. Macro-drainage interconnected solutions to address the full scope cadaster was updated and a program for water loss Avenues with macro-drainage works installed have problems in several neighborhoods and the city of water issues present. The Project followed an reduction was prepared. seen no major flooding since the implementation center were exacerbated by accelerated urban approach to Integrate Urban Water Management of the project’s works, with a resulting 244 percent development and increased impermeability, (IUWM), in which water supply, wastewater Beyond infrastructure, the Project also confronted increase in property values in those areas and management, drainage and related aspects were all the larger issue of environmental awareness and quality of life improvements for a broad section of effectively incorporated in the Project’s analyses, engagement by the community by constructing two the city’s population. The water utility, CODAU, has planning and interventions. new urban parks, undertaking a successful social reduced water losses by over 13 percent– equivalent outreach campaign during the works themselves, to 1.2 million cubic meters per year. Additionally, The Project’s efforts to ensure adequate levels of and implementing a comprehensive environmental the Project financed 37 hectares of new urban water quality by collecting and treating wastewater, education program in the project-financed Center parks, and a comprehensive environmental to reduce flooding in the city center, and to combat for Environmental Education. education program, including relevant university potable water losses, were complemented with courses, have been installed in the multi-use center activities to educate the population on the benefits for environmental education. Photo: Projeto Agua Viva, www.uberaba.mg.gov.br of water and environmental conservation while PAGE 14 PAGE 15 World Bank Group Contribution exceeded the original target. Drainage works have Bank loan disbursements for Uberaba Agua Viva mitigated flooding for over 3,000 properties, totaled US$16.03 million— 93 percent of the as well the city center; the entire municipal US$17.27 million allocated at appraisal. population’s water supply is more regular and secure; discharge of untreated wastewater has Partners fallen dramatically; and the riverside “linear Both Brazil’s Federal PAC program and CODAU, park” alone has had over 72,000 annual visitors. the local water utility, provided funds towards the Participants of all ages, but especially children municipality’s project counterpart contribution. 8-11, were also directly benefited by the Project’s environmental education program. Moving Forward The municipality remains committed to finishing the remaining project works, most importantly the sanitation infrastructure, which should lead major improvements in the Uberaba River’s water quality. Additionally, Uberaba will continue building its capacity in project supervision and monitoring, including environmental licensing, activities under the Project-financed Environmental Action Plan, and institutionalization of the Project Management Unit as a permanent municipal body. Beneficiaries Given the scale and integrated nature of the project, the whole city of Uberaba saw real quality- of-life benefits from the Project; in almost every category, the number of beneficiaries actually Photo: Projeto Agua Viva, www.uberaba.mg.gov.br Centro de Educacao Ambiental, Prefeitura Municipal de Uberaba PAGE 16 PAGE 17 Results BRAZIL There is still a large number This technical assistance was strategic and effective of people who remain poor in providing valuable knowledge to the Government of Brazil on the issue of productive inclusion. in monetary terms and who Productive Inclusion in Brazil lack access to basic services. It also spearheaded the creation of partnership and knowledge exchanges with other Bank teams The Bank Provides Knowledge and Convening Services to Increase Equality working in these issues. The Bank can play a crucial role in strengthening the Government’s The World Bank and the Brazilian Government Brazil is strengthening its overall productive inclusion strategy within the extreme productive inclusion agenda, by taking advantage designed the Productive Inclusion within Brasil poverty eradication plan Brasil sem Miseria, and its articulation within the broader Sem Miseria non-lending technical assistance of all the knowledge and experience that it has social protection system. To further this objective, the World Bank provided program focused on three areas: accumulated over years of work at the subnational analytical and technical support to convene key stakeholders to discuss possible • Support the Ministry of Social level in different states in Brazil, as well as in other innovations in urban productive inclusion and present international best practice Development (MDS) in organizing a countries, and of the strong relationships that it in rural productive inclusion practices. has created with the federal Government through workshop on urban productive inclusion. the engagement with the MDS since its creation in • Deepen the knowledge on rural productive 2004. Indeed, the Government has indicated that it inclusion, especially by sharing the Bank’s Challenge people, and more importantly, establishing the values the support of the Bank in this area. experience in this area. Despite substantial gains over the last decade, conditions for their productive inclusion into the • Facilitate the discussion for a north- poverty in Brazil remains high, and more than Brazilian economy, remains a challenge. south exchange on the implementation one person out of five lives below the poverty line. challenges of social protection programs According to the National Institute of Applied Solution in metropolitan areas (Rio de Janeiro, Sao Economics Research (IPEA), extreme poverty The Brazilian Government committed itself to Paulo and New York), with a particular reached 7.3 percent in 2009, down from 15.2 lifting 16 million people from poverty through a emphasis on the articulation of productive percent in 2003; while moderate poverty declined three-pronged approach that included a productive inclusion programs within the social to 21.4 percent from 35.8 percent. Despite these inclusion component promoting activities in rural protection system. impressive gains, there is still a large number of and urban areas, and aimed at increasing the people who remain poor in monetary terms and productivity of families in extreme poverty towards who lack access to basic services. Reaching these employment and income generation. Photo: Mariana Ceratti / World Bank PAGE 18 PAGE 19 World Bank Group Contribution Moving Forward The Bank provided technical, advisory and The Bank will continue to provide support for BRAZIL financial support to the Government of Brazil in the productive inclusion programs through existing organization of the workshop “Urban Productive projects and through the umbrella technical Inclusion: Experience, Results and Challenges,” assistance program World Without Poverty. São Paulo Rethinks the Virtual which took place in Campinas on May 8 and 9, 2013. The total amount of Bank funding was Beneficiaries Classroom approximately $10,000. State level social assistance Government professional and researchers were the primary Partners beneficiaries of the project activities. A World Bank review of a proposed educational model using interactive technology This activity was developed with the Ministry of and content and a 10 year public-private partnership (PPP) service delivery Social Development, Fight Against Hunger, and the contract highlighted the high costs and risks associated with the model. As a result, University of Campinas. the State Government of São Paulo is rethinking and reformulating a multi-billion dollar investment in technology and education. Challenge technology and education project in the world. The State of São Paulo’s education system is Moreover, a PPP of this magnitude had never been hampered by under performance and poor designed in the education sector. quality instruction. In an effort to improve the quality of education, the Secretariat of Education Solution introduced a program of interactive content To assess the costs and risks of this program, the and pedagogies. The Virtual Classroom project Government of São Paulo requested World Bank was intended to create a PPP with industry to support in reviewing private sector proposals for manage the development and deployment of new Photos: Mariana Ceratti / World Bank the modeling of the project’s PPP arrangement. interactive content and technology in all state The Bank’s Brazil RAS São Paulo Support to secondary schools. With an estimated cost of over Education PPP Project provided the feedback US$7 billion this project represented the largest for these proposals, analyzing risks, creating an PAGE 20 PAGE 21 evaluation framework, and developing a financial • Importance of a clear communication The team also provided a series of inputs to Results model. strategy and roles and responsibilities for support the development of the monitoring The analysis was a major factor in the project’s various components. and evaluation framework, the institutional Government’s decision not to move ahead with arrangements for this framework, the integration the Virtual Classroom project. In addition, the With an estimated cost The Bank team provided a comprehensive review of the framework into the financial model for engagement created a number of important results of the risks associated with the project. Along with definition of payment structures, and an outline of that would apply to other countries considering a of over US$7 billion, this the identification and classification of risks, the an impact evaluation for the project. large information and communications technology project represented the team provided potential mitigation strategies and (ICT) and education-related project. largest technology and provided input on which risks should be retained Finally, the team engaged in a series of steps to education project in the by the Government and which risks should be identify key aspects of the financial model and The PPP’s focus on outputs and outcomes instead world. allocated to the private sector. Through the then develop and refine the model based on client of inputs was a very interesting model for service value of money analysis the Bank team assigned feedback. The key deliverables for this aspect of the delivery payment and in the education sector probabilities and costs to these risks to model the project included: would have been the first of its kind. The team also At various stages of the process between August financial viability of the project from a risk-cost • An outline of categories for the financial incorporated innovative concepts around how to and November 2012, the Bank team provided input perspective. model. leverage the project for Big Data opportunities on the development of the technical model that • A tool to compare the characteristics of and personalized learning. Also, the solutions emerged from the nine private sector proposals, the proposed financial proposals, assess around open content, ownership and privacy of including: the feasibility of the project’s financial data generated through the project presented • Refinement of objectives. structure, and identify the key investment new opportunities to develop digital content and Through the value of money • Key gaps in the model and options for categories. software markets in Brazil. analysis the Bank team filling those gaps. • A macro tool to run a number of • Monitoring and evaluation options. assigned probabilities and simulations on the financial model. The intensive process of risk identification, risk • Intellectual property issues on content. costs to these risks to model • A final model and report on the simulation mitigation, risk value, and risk allocation in the • Integration of content with learning the financial viability of results. context of a PPP was unique to the education management and content management the project from a risk-cost • An economic evaluation of the project. sector. The risk assessment highlighted issues such systems. perspective. as delay risks, engagement risks, technology lock • Advantages of outsourcing data and 10 year contractual risk that have influenced management. planning. Some of the risks that had not been PAGE 22 PAGE 23 considered by the client included: The team delivered all three outputs on time and Partners pedagogical model, the locus of teacher training, • Challenges in the proposed model around included additional outputs such as an economic The World Bank team worked with the Government objectives for digital content, and review of risks delayed implementation and payment to the analysis and a legal analysis that were above and team to develop and implement the financial model and risk allocation. private sector partner. beyond the scope of the terms of reference. and to build the Government’s own capacity to • The ten year time frame for the PPP. run various simulations to test assumptions in the Beneficiaries • The potential low impact on learning outcomes model. The main partners were the Secretariat The main beneficiaries are the Government of (the importance of placing more focus on The technical quality of Education and the Secretariat of Planning and São Paulo and the State’s Secretary of Education, student engagement and satisfaction). was very high and broke Regional Development. who indicated that through this engagement he • Intellectual property and digital content ground with new thinking has a clearer perspective on the areas of education concerns. The team helped the Government improve its about the challenges and that could be outsourced to partners outside • The challenge of “technology lock” with understanding of the challenges and opportunities opportunities of PPPs in of Government and has a clearer and stronger the initial choice of learning and content of digital content, particularly from a legal understanding of the costs and risks of these management systems. education. perspective, including issues around open partnerships. source, privacy, and Big Data opportunities. The Some of the innovative approaches to monitoring associated risks, costs and benefits of this design Secretary of Education Herman Voorwald, credited and evaluation included transparency and World Bank Group Contribution approach were well fleshed out at the end of the the risk analysis as one of the primary factors in the openness in sharing data to engage the public The total cost to the Bank was around US$310,000 engagement. Through this intense engagement, decision to postpone the project: and increase accountability of the private sector and during this 6 month intensive engagement, the the team members at the Secretariat of Education “... the request to postpone the Project was partner; Big Data opportunities to use data more Bank positively influenced a multi-billion dollar and strengthened their ability to design a first-of-its- made by the State Secretariat of Education, effectively to both analyze the education system as multi-year project. The team drew on experience kind PPP for education. which highlighted the following as the principal a whole and individual learning progress; citizen and resources from across the Bank including motivations for rethinking the initiative: ‘the participation in data and accountability; and the Human Development and Education Network, the Moving Forward risk analysis of the project carried out by the use of dashboards for real time data access. Transport Sector, Development Economics (DEC), The Government of São Paulo fully incorporated World Bank, the consolidations of a new internal International Finance Corporation (IFC), the ICT the Bank team’s inputs into the development of organizational structure—which presented a The technical quality was very high and broke group (TWICT), and the Infrastructure Policy Unit the model. While this project was initially on a new context for the execution of projects—as ground with new thinking about the challenges to leverage the best experience from various parts very fast track to implementation, the Government well as new evaluations about the Projects basic and opportunities of PPPs in education. The client of the Bank. decided to withdraw the original technical proposal assumptions.’’ was very engaged throughout the whole process. to rethink its content and scope, such as the overall PAGE 24 PAGE 25 cases, corruption and cronyism, high levels of • A set of guiding principles of development COLOMBIA impunity, expansion of illicit crop cultivation, to create conditions for lasting and durable and little opportunities for participation by civil peace. society institutions. The Project assumed the • A proven methodology, which is highly Peace and Development go challenge of assisting low income and displaced inclusive and follows a step by step process Hand in Hand in Colombia populations in rural and urban communities in conflict-affected regions with the aim to reduce that starts small and local and gains increasing size, complexity and influence Building peace and confronting poverty in regions affected by violence the risk of their exposure to conflict and mitigate over time. the negative impact of possible derived effects. In • An institutional arrangement to manage particular the project utilized two approaches in the activities based on a partnership The Regional Development and Peace Program demonstrated achievements conflict-affected regions in the midst of violence: i) between civil society organizations and the in i) reducing the risk of displacement and mitigating its effects, through the building assets to mitigate the risk of displacement, government (at the national and territorial installation of basic assets, ii) generating socioeconomic stabilization of the and ii) restoring a basic safety net for displaced level) facilitated by the World Bank. The participants through income generation and recovery of a social support network, and vulnerable families as a vital first step in their Project developed social, economic and and iii) preventing violence and reducing vulnerability, through the strengthening social and economic stabilization. environmental assets and community of participatory democracy. support for displaced and vulnerable families in the priority areas of the conflict- Challenge Between 4.7 and 5.7 million affected regions through a wide range Colombia, despite its impressive economic people were internally of subprojects, from food security and development faces a sustained challenge of high displaced between 1985 and income generation to social and cultural levels of inequality. The internal conflict and the 2012. promotion. high rates of violence have had a negative impact on the social and economic development of the Results country. Between 4.7 and 5.7 million people were Solution The Project had positive impacts on overcoming internally displaced between 1985 and 2012. Over a 14 year period, the Project designed, poverty, which included: i) direct effects on the The conflict is waged primarily in rural areas tested and validated a development innovation early stabilization of the vulnerable and displaced over control of territory. It takes place in regions (intervention model) that included three main population whose poverty has been exacerbated characterized by weak institutions and, in many components: Photo: World Bank Collection by the armed conflict; ii) greater social capacities PAGE 26 PAGE 27 of municipal life. 664 beneficiary organizations Union contributed with about US$130 million as were strengthened during the life of the Project. counterpart funding of the Peace and Development 60 percent increased their capacity indexes Program, and the partner organizations at the above the initial levels. Through the direct regional level leveraged about US$12 million implementation of several types of subprojects, between 2004 and 2012. Four operations were these organizations have increased their associated to the Peace and Development Program: capabilities and are influencing public policies Gender in Peace and Development (US$100,000 at the regional and local level. Gender Trust Fund); Institutional Strengthening of Municipalities with Afro-descendant Populations • Finally, the Peace and Development Program (US$1,58 million from the Institutional has been incorporated in three National Development Fund), Human Rights in Peace and Development Plans (2002-2006, 2006- Development Regional Programs (US$400,000 2010 and 2010-2014), and its innovative from the Nordic Trust Fund), and Access to intervention model has inspired several Opportunities for Young People (US$1,73 million National Policy Documents (CONPES) in the from the Japan Social Development Fund), all following areas: Victim’s Integral Reparation, Photo: World Bank Collection administered by the World Bank. Community Action Boards, Children and for confronting poverty, associated with greater beneficiaries, more than 60 percent of whom Young People Recruitment Prevention, Promotion of Citizen’s Participation, Territorial Partners social integration, the strengthening of social were enrolled in income-generation and social, Consolidation and Reconstruction, Fight The partnership arrangement (listed in the organizations and networks, and an increase in cultural and environmental management Against Corruption, Youth National Policy and previous section) allowed the participation community reciprocity; and iii) an increase in the subprojects. More than 700 subprojects were other national policies (Democratic Culture and of multiple parties and led to a productive level of trust and community relations with public implemented by social and community based Entrepreneurship). combination and balance of “insiders and institutions, helping 7 out of 10 participants to organizations. outsiders.” That is, combining in depth contextual enroll in State social programs associated with the • In terms of institutional and organizational knowledge, motivation and commitments, fight against extreme poverty and the provision of World Bank Group Contribution strengthening, the Project strengthened the credibility, trust, legitimacy, and continuity assistance to the displaced population. IBRD provided US$30 million in 2004 and an State at the local level, as it increased citizen provided by the leaders and staff of the Partner additional financing of US$7.8 million in 2010 • Social, economic and environmental and political participation, and effectively Organizations in the field and, as time went to the Government of Colombia. The European assets were generated for a total of 89,367 involved beneficiary organizations in matters on, also by the leaders of community-based PAGE 28 PAGE 29 organizations. External partners such as the in Colombia. Project’s to be financed under this government, the World Bank, United Nations Fund can benefit from the Peace and Development COLOMBIA and the European Union provided international Program’s lessons and can take advantage of the experience, new ideas and techniques and external institutional capacities that have been installed at funding. the regional and local level. Colombia Prepares to Meet Moving Forward Beneficiaries Development Challenges All the Regional Peace and Development Programs Project’s beneficiaries are poor and vulnerable Enhancing Sustainability in the Fiscal Framework incorporated into the Peace and Development families, as well as displaced people that return or are relocated; community organizations, small Program have continued to operate after the end The Colombian Government, is working to ensure its financial sustainability of the project and several of them are playing a producer associations and micro-businesses, and reduce its vulnerabilities, while sustaining needed social spending. With a key role in the formulation and implementation of municipal governments; partner organizations strengthened fiscal position, Colombia will be better equipped to meet current and peace and development related policies, particularly presented in the legal representatives of the future development challenges. victims, rural development and participation. Regional Peace and Development Programs. The intervention methodology of the Program during eight years of implementation has proven In the project’s beneficiaries’ words, the Peace Challenge Solution to be effective in relation to national agenda and Development Program has contributed to Colombia’s considerable reliance on oil revenues, The Fiscal Sustainability and Growth Resilient issues, in scenarios of both armed confrontation increased levels of reciprocity and trust in our relatively high poverty and inequality levels, Development Policy Loan series supported a strong and transition, allowing the recovery of poor communities; we have greater confidence in our high exposure to natural disaster risk, and a program of reforms to strengthen Colombia’s fiscal communities affected by the violence, as well as public institutions, particularly the police and the relatively complex political economy represent position. Reforms included the implementation the generation of conditions for the arrival of more military; we feel more responsible for our own major challenges to making the Government’s of a Fiscal Rule Law in 2011 that defines an robust institutional interventions. In recent years, future; we have increased capacity and willingness fiscal framework sustainable. At the same time, adjustment path for the structural budget deficit. the lessons generated by the Program have been to participate, to assume leadership positions sustaining growth in the longer run needs To preserve the Government’s capacity to respond employed for the design of public policies, as well and to influence public affairs; we now resolve smart investments in infrastructure, health, to negative short-run shocks, the targeted deficit as the active participation of the Program’s Partner conflict by using community strategies and prefer a and education without risking fiscal and debt indicator took into account short-run fluctuations Organizations in various endeavors. Recently, the collective action over an individual one to address sustainability. in commodity prices and the economic cycle. World Bank has created a Multidonor Peace Fund threats by illegal armed actors. Other supported reforms in the tax system helped to continue promoting peace and development PAGE 30 PAGE 31 • Non-oil tax revenues increased. By Partners supporting tax administration measures The Ministry of Finance and Public Credit, Ministry and tax reform, the program helped of Health, and Ministry of Agriculture were key increase non-oil tax revenues from 12.0 partners in this project. percent of GDP to 12.9 percent in 2013. By increasing revenues, the Government did Moving Forward not have to cut back on social expenditures The operation led to an intensified policy dialogue to meet the deficit target. with the Government of Colombia. A series of follow • Liabilities were contained. up activities supported further lending operations • Supported reforms in the health sector and helped to inform further reforms. For example, improved the policy of health cost the Enhancing Fiscal Capacity to Promote Shared reimbursements and its monitoring, which Prosperity Development Policy Loan supported has contained recurrent costs outside the linking fiscal policy to redistribution and the Photo: Isabelle Schaefer / World Bank mandatory insurance scheme at its 2010 Growth and Competitiveness Development Policy level. to increase revenues. On the expense side, the limited to the fiscal system, but clearly identified Loan is supporting an agenda of structural reforms • New incentives supported by the program loan supported measures to mitigate expanding exposure to health and disaster risks. It also to further support growth resilience. led to a doubling of the coverage of insured government costs arising from natural disasters benefited from the Bank’s expertise in other agricultural area between 2010 and 2013. and a complex health system. For example, new sectors. Results of the program included: Beneficiaries • The number of financial instruments to incentives were created to increase agricultural • The structural fiscal balance was reduced. The program’s achievements and, especially, the mitigate natural disaster risks increased insurance and clearer criteria were established for The Fiscal Rule Law led to prudent fiscal resulting policy dialogue and follow-up operations from two in 2010 to three in 2013. health-related reimbursements. management and reduced the structural ensured fiscal support for important Government fiscal balance from a predicted deficit of programs, such as the conditional cash transfer 3.7 percent of GDP in 2011 to an actual World Bank Group Contribution Results program Familias en Accion, which expanded from deficit of 2.4 percent in 2013. Furthermore, The Bank provided a loan of US$500 million. The The program’s success was a result of a close 514,000 households in 2005 to about 2.79 million the rule did not hinder the Government Bank continues to provide assistance to key policy consultation with the Government, which took households in 2012 and benefits poor households. from enacting a counter-cyclical stimulus areas through lending and non-lending follow-up full ownership of the implemented reforms. The program amid an economic slowdown in projects. program’s comprehensive packaging was not early 2013. PAGE 32 PAGE 33 COLOMBIA Towards a more Sustainable Agriculture Commodity Exchange in Colombia Analytical Work Provides the Basis for Positive Reforms Based on recent challenges in the performance of the Agriculture Commodity Exchange of Colombia, the BMC (Bolsa Mercantil de Colombia) itself and the Government of Colombia requested the World Bank’s technical assistance to help improve the operations, market development, and legal and regulatory framework to support the sustainable developing of the market, enhancing efficiency and risk management. The sustainable development of the agriculture commodity exchange is based on improving the volume of trading as well as the type of contracts and services being offered, while ensuring proper management of risks to avoid systemic losses. Following improvements proposed in a final analytical report, several improvements in the performance of the BMC have been made and innovative financing instruments evaluated. Challenge without access to credit. During this time period Between 1998 and 2000, the Colombian financial and in the following years, the BMC experimented sector went through a crisis due mainly to a with the trading of certificates on live animals program of high risk loans to benefit poor farmers (certificados ganaderos a termino - CGT), which Passionfruit. Photo: World Bank Collection PAGE 34 PAGE 35 led to severe losses in 2010 and 2011 due to agricultural commodity exchanges in the region, Results differentiating between the Cash Market, inappropriate risk management measures by the highlighting international lessons-learned and The final analytical report presented the Public Purchases Market, the Financial BMC. proposals to use successful approaches and recommendations in several key areas, among Products Market, and the Derivatives systems from other countries where relevant. others: Market. In light of the operational and regulatory For example, key characteristics of Agricultural • Improvements in the operations and legal/ • Introduction of innovative price hedging challenges that were leading to the negative Commodity Exchanges were presented from Chile, regulatory framework of the exchange. instruments for agriculture commodities. performance of the BMC, its management and Argentina, the United States, Brazil, South Africa, • Potential new products and instruments • Reforms to operational processes within the Colombian Government – the Ministry of and other countries as recommendations for to introduce in order to enhance the the exchange and corporate governance Agriculture and Rural Development – approached consideration when developing similar contracts/ effectiveness and sustainability of the reform. the World Bank in 2011 to provide advice to market aspects in Colombia. The project also held exchange. the BMC on operational, legal/regulatory and a regional workshop in Chile and a regional study • Options for new compensation and market development aspects to help develop the tour through LAC for key BMC and Colombian liquidation systems for the exchange. The analytical report commodity exchange market. Government officials to view and better understand enhanced key processes, other countries’ systems and agriculture The analytical report – in addition to a study tour commodities contract types being traded. and various meetings with key government and built capacity, deepened Solution Between April 2012 and September 2013, a other stakeholders – enhanced key processes in knowledge of the relevant World Bank team reviewed the BMC’s operative, the BMC, built capacity in both the government topics, and generated legal, and regulatory frameworks and proposed and BMC’s management and Board of Directors, innovative solutions to key improvements to strengthen the market and The project held a regional deepened knowledge of the relevant topics within market challenges. ensure its long-term financial sustainability as well Colombia, and generated innovative solutions to workshop in Chile and a market challenges. as to pursue innovations that could help develop the agricultural sector. Specifically, the team regional study tour through World Bank Group Contribution sought improvements that could be made for the the region to view and Key changes that were enacted or are under The World Bank financed this analytical report as a development of current and new agriculture and better understand other consideration for the market as a result of this Reimbursable Advisory Service, with a total cost of financial-related contracts to be traded at BMC. countries’ systems and project include: US$230,000. agriculture commodities • Adapting the legal/regulatory framework according to the various markets in The report also provided useful benchmarking contract types being traded. data from both failed and from the most successful the agriculture commodity exchange, PAGE 36 PAGE 37 Partners Beneficiaries Key partners were representatives from the BMC The BMC and other financial stakeholders in the DOMINICAN REPUBLIC as well as officials from the Ministry of Agriculture agricultural commodities and futures markets and Rural Development (MADR). will benefit from increased market coordination, better functioning exchange and streamlined Better Electricity Services in Moving Forward Based on interest in several of the regulatory and improved risk management and regulatory structures. Citizens working in the agricultural the Dominican Republic sector in general will benefit from better access Improving the quality and availability of electricity proposals laid out in the main report, the to more effective financial investment and risk Government of Colombia has requested the management instruments. Bank’s ongoing technical and financial support The Government of the Dominican Republic, worked from 2008-2013 to in implementing specific legal and regulatory rehabilitate electricity distribution companies in order to increase the hours of reforms, in particular the review of the capacity of service and reduce the frequency and length of blackouts. The project helped to intermediaries/brokers to operate in the different rehabilitate 13 circuits in the three electricity distribution companies (EdeEste, markets at the exchange. EdeNorte, and EdeSur) and reached 101,197 households, 24.2 percent higher than the original target of 81,439 households. Challenge in most areas, including the professionalization of Throughout the 1990s, the electricity sector senior management of the distribution companies, in Dominican Republic provided substandard better targeting of the subsidies, the revival in service, with inadequate generation capacity investments to rehabilitate the energy grids, and and frequent power cuts. The historical roots the strengthening of regulations. The service were a combination of politics, corruption and improved with an increasing number of clients the inefficiencies of a state-owned monopoly. receiving electricity 24 hours (around 791,000 or At times, the problems boiled over into national 35 percent of the market). crises. Over the past decade, the Government restructured the sector and made major progress Photo: World Bank Collection PAGE 38 PAGE 39 Solution executed grid rehabilitation projects. The projects Results In addition, the project won two prizes on The World Bank-financed Electricity Distribution increased the performance of the companies by: The project achieved two main results through sustainability in the Shared Prosperity Days Rehabilitation Project in the Dominican Republic • Achieving economies of scale and more rehabilitating the circuits, introducing innovative (Delivering jobs, inclusion and sustainability – helped the Government to improve the quality competition in procurement, community outreach and strengthening the December 3 and 4, 2013). of electricity service in the three electricity • Introducing “supply and installation” management of the EDEs: distribution companies. The project was successful contracts, • The project interventions from 2011 to World Bank Group Contribution in reaching 101,197 households, increasing the • Incorporating the best practices of the 2013 helped to increase the average service The World Bank contributed a loan of US$42 number of hours of service in the three distribution three Distribution Energy Companies availability index (ASAI) in each EDE as a million to cover investments, and technical companies, and reducing the number and (EDEs) in terms of both investments and whole (EdeNorte by 1.2 percent, EdeEste assistance for this project. A second loan for frequency, as well as the duration, of blackouts. community outreach, and by 13.5 percent and EdeSur by 22 percent), US$120 million is currently under preparation. • Having robust monitoring and evaluation and to increase the Cash Recovery Index The activity supported the increase of the so that lessons are learned and mistakes (CRI) in two of the three companies electricity quality services by ensuring that the corrected faster. Partners (EdeNorte by 10.7 percent and EdeEste by electricity distribution companies prepared and The Bank supported the Dominican Corporation 15.5 percent). of State Electricity Companies (CDEEE) • It is estimated that the project increased and its coordinating unit in the design and the quality and availability of electricity for implementation of the Project. A strong a total of 101,197 households in the three partnership was built during implementation companies. among the Bank and the three distribution companies of the Dominican Republic (EdeEste, EdeNorte, and EdeSur), as well as with the Holding Company CDEEE. The project increased the The total project cost was $152 million, and the quality and availability project was co-financed by the Inter-American of electricity for a total of Development Bank (IADB) (US$42 million), 101,197 households in the Organization of the Petroleum Exporting three companies. Countries (OPEC) Fund (US$30 million), and the Photo: World Bank Collection PAGE 40 PAGE 41 Government’s own funds. There were several joint Beneficiaries missions with IADB and close collaboration has Direct beneficiaries are those connected to the GUATEMALA been maintained through project implementation rehabilitated distribution circuits, and were a and supervision. total of 101,197 households. Indirect beneficiaries are the total customers of the three distribution Guatemala improves Maternal- Moving Forward There is a Distribution Networks Rehabilitation companies through a reduction in losses, reduction on the customer’s energy bills, and increase in Infant Health and Nutrition the quality of electricity service measured by Reducing Chronic Malnutrition in children younger than 2 years old in rural areas IBRD loan for US$120 million currently under the average service availability index (ASAI) per preparation. It aims to increase the Cash Recovery circuit, that had a substantial improvement in the Index of the three electricity distribution EDEs, and less black outs. Based on a number of measures, Guatemala has achieved the Under 5 Mortality companies in selected areas and improve the Millennium Development Goal (MDG) target 4 and has progressed towards the quality of electricity service, and is a continuation achievement of MDGs 1 and 5. With World Bank support, Guatemala is increasing of the project that closed in September 2013. access to a basic package of health, nutrition, and reproductive health services to Additionally, the Bank is developing an Energy over a million people, including approximately 160,000 children under five. Sector Management Assistance Program (ESMAP) activity (technical assistance US$50,000) with Challenge (stunting) in the region, with half of all preschool the objective “to strengthen the Government’s Guatemala’s high maternal mortality rates were children chronically malnourished. Chronic capacity to design and implement a commodity risk the result of inequities in access to health services. malnutrition and the poor health of young children management strategy that could, in combination In the early 2000s, one in five pregnant women not only led to higher infant mortality, but also with other structural reforms in the power sector, had no pre-natal care at all, and half had their short stature, negative cognitive development, help strengthen the Government’s capacity to first pre-natal care visit during the first trimester poor school performance, and reduced adult manage fuel price volatility and its fiscal impact.” of pregnancy. Low birth weight, deliveries under productivity. The resulting irreversible losses of unsafe conditions, malnutrition, infectious human capital formation affect current and future digestive diseases, and respiratory infections raised generations and will ultimately undermine the infant mortality. Furthermore, Guatemala had country’s economic growth. the highest prevalence of chronic malnutrition PAGE 42 PAGE 43 Results In addition, the Bank provided significant project- The following key outcomes in health related technical assistance and was closely engaged improvements were measured among the target on the ground. population (pregnant women and children under two years of age) in the areas of intervention: Partners • The indigenous/non-indigenous maternal The Ministry of Public Health and Social Welfare mortality ratio fell from 3.2 percent in (MSPAS) implemented the project, provided June 2006 to 1.24 percent in December all relevant data and complied with the loan’s 2012. conditions, including social and environmental • The percentage of institutional deliveries safeguards to make the project successful. The Bank increased from 22.3 percent in 2006 to 42 team worked in close collaboration with the MSPAS percent in December 2012. Health Team to design the project and remained • The percentage of children with chronic engaged during program implementation. The malnutrition fell from 73 percent to 60 Inter-American Development Bank’s Mesoamerican Photo: Maria Fleischmann / World Bank percent. Health Initiative 2015—Guatemala Project also seeks to improve maternal health, reproductive Solution phase of the PEC, which expanded coverage to and neonatal health, and strengthen access to To address some of the root causes of Guatemala’s an additional 70 municipalities. Through the The percentage of children and quality of services, while contributing to the health crisis, in 2005, the Guatemalan Extension of Coverage Program and other health Government sought to increase health care access and nutrition related interventions, the project with chronic malnutrition achievement of the MDGs. It currently includes by strengthening the Extension of Coverage worked to improve maternal and infant health fell from 73 percent to 60 health facilities in 236 communities. A number of Program (Programa de Extensión de Cobertura, in the areas of intervention and reduce chronic percent. private initiatives also focus on maternal and infant health. PEC). The program guaranteed the universal malnutrition among children younger than two provision of an improved basic package of health years of age in rural areas. Other interventions services in over 100 largely rural and vulnerable included strengthening 40 secondary level facilities World Bank Group Contribution Moving Forward municipalities through a two-phase approach. to promote safe births, and supporting community- A US$49 million Bank loan supported the Maternal The Bank has remained engaged in the sector, The first phase was implemented in 41 prioritized based and institutional integrated maternal and and Infant Health and Nutrition Project. This was implementing a health system strengthening municipalities. The Bank’s Maternal-Infant Health child nutrition centers. the first Bank financed project in the health sector non-lending technical assistance project, which and Nutrition Project supported the second in Guatemala. also supports the Government’s Pacto Hambre PAGE 44 PAGE 45 Cero (Zero Hunger Pact) program. The Zero her mother, took the young child to the health Hunger Pact, launched in 2012, identifies the center due to the child’s poor weight gain. Luisa GUATEMALA reduction of malnutrition as a basic priority. The was informed that her daughter suffered from pact incorporates most of the elements found in an acute respiratory illness, and was affected by the project, such as the provision of basic health poor hygiene in the household. Luisa was also Adoption of Clean Technology services, promotion of proper nutrition, hygiene and breastfeeding, complimentary feeding and very sad to learn that her daughter was considered malnourished. From that moment on, Luisa Practices by Micro, Small and supplementation with micronutrients, and a attended health and nutrition education sessions Medium Enterprises focus on the population most vulnerable to food offered by the project and after some time the The Guatemalan Experience insecurity. girl successfully gained weight and improved her energy levels. She is now a healthy four years old. Beneficiaries The Guatemalan Center for Clean Production drew on World Bank funding The story of Berly Noemi Perez, from La Puerta “Thank you!” states Luisa, “your advice helped and knowledge services to help more than 20 micro-, small- and medium-sized village in San Pedro Pinula, is an example of a me a lot and now I am able to take care of my enterprises (MSMEs) adopt clean production and logistics practices, reduce water children so that they stay healthy.” consumption and increase energy efficiency. For 17 MSMEs from the agribusiness malnourished girl who benefited from the project. When Berly was almost two years old, Luisa, and tourism sectors, the project also supported training, technical assistance and creating action plans to adopt clean production practices. Challenge In Guatemala, the tourism and agriculture sectors involve a number of operations that consume resources and generate waste and emissions, affecting health, worker safety and rational resource use. Guatemalan MSMEs are particularly significant sources of pollution in these industries, making them ideal candidates for adopting clean production technology. Cleaner production can Guatemalan Clean Production Center. Photo: World Bank PAGE 46 PAGE 47 cut costs, reduce emissions, improve the quality of Results 62 guests per day could cut fuel costs by products or services, enhance the competitiveness During the first semester of 2013, the project helped 40 percent, save US$20,000 per year and of enterprises and enable participation in new more than 20 MSMEs adopt clean production and reduce emissions by 56 CO2e tons per year. markets in which environmental management is a logistics practices, reduce water consumption and • Reducing the number of times a cold prerequisite. increase energy efficiency. Through the pilots, room is opened could cut energy costs by 17 MSMEs from the agribusiness and tourism 30 percent, save US$3,500 per year, and sectors received training and technical assistance reduce emissions by 4.5 CO2e tons per Solution to incorporate clean production practices into year. The World Bank-supported Promoting Clean their businesses. Each company defined an • For every US$1 invested in clean Technology with Value Chains Project focused environmental baseline and prepared an action production practices, participants could Training and Technical Assistance provided to MSMEs. Photo: World Bank on developing a clean production value chain plan to improve its business through clean save approximately US$0.70 per year. prioritization model to identify 20 value chains Partners production practices. • By implementing their action plans, pilot within the tourism and agribusiness sectors that This initiative was funded by a Norwegian Trust MSMEs could reduce water consumption had good potential for adopting clean production Fund for Private Sector and Infrastructure (NTF- As examples of clean production practices the by 5,742 m3 (equivalent to 2.3 Olympic technologies. The project also supported two pilots PSI). The Guatemalan Clean Production Center project team recommended the following: swimming pools) per year and cut in the tourism and agribusiness sectors to improve (CGP+L) implemented the pilots. • Investing US$210 to replace 56 emissions by 156 tons of CO2e (the amount adoption of clean technology practices by MSMEs. incandescent light bulbs with compact of carbon sequestered by 3,676 tree This project was linked to the US$32 million The Guatemala Development Foundation fluorescents could cut energy costs by 80 seedlings grown for 10 years) per year. Enhancing MSME Productivity Investment Project, (FUNDESA) collaborated with consultants on percent, save US$900 per year and reduce which could incorporate clean practices in its the value chain prioritization exercise. The Clean emissions by 1.74 tons of carbon dioxide selection criteria for MSMEs. Production Technology Committee, which is made equivalent (CO2e) per year. up of ministries, associations, and universities, • Investing US$1,500 to replace 32 and the Guatemalan National Congress supported The project supported two fluorescent lamps with LED tubes could cut For every US$1 invested in activities implemented by the project. pilots in the tourism and energy costs by 84 percent, save US$2,600 clean production practices, agribusiness sectors to Per year and reduce emissions by 3.5 CO2e participants could save In addition to the project-sponsored activities, tons per year. improve adoption of clean approximately US$0.70 per the Korean Ministry of Knowledge and Economy • By decreasing maximum water technology practices. year. (MKE) supported the complementary Creating temperatures, a hotel with an average of Green and More Competitive Value Chains Project. PAGE 48 PAGE 49 The Korean Energy Management Corporation (as beneficiaries of the MSME project) or indirectly (KEMCO) conducted energy audits for the leather (through learning about these results via the HAITI and textile value chains. Centers of MSME Development and being enabled to replicate their experiences). Moving Forward Improving Access to Water and The Center of MSME Development and its regional offices will disseminate the results (investment Luis Rey, General Manager of Hotel Ajau, said, “For the Hotel Ajau, the training and technical Sanitation in Rural Haiti assistance provided by the Guatemalan Clean needed, economic benefits for the firm and Rural communities of the South and Nippes Departments Production Center through the project funded by environmental benefits for the country). The project the World Bank was very beneficial. Learning includes a subcomponent for strengthening and about the importance of adapting clean Haiti has built safe drinking water systems serving more than 50,000 people increasing the number of business development services providers so that MSMEs can access production practices was very important. We have and school latrines for more than 5,000 students and teachers in rural Haiti. The services similar to those received by beneficiaries implemented some changes in our hotel in order government also helped establish professional operators and water and sanitation of the pilot. In addition, the Bank could expand to save energy and water consumption without committees in nine communes and provided hands-on training to the operators affecting the comfort of our clients. We have and committees in community mobilization, conflict resolution, billing and the lessons learned from the Promoting Clean benefitted from these changes by reducing our accounting, meter reading and repairing, chlorination as well as plumbing. Technology with Value Chains Project by costs and also because we promote them among integrating clean production practices into the our clients as part of our marketing strategy; we criteria for selecting value chains for the US$32 want to let our clients know that we care about the million Enhancing MSME Productivity Investment Challenge environment as well as to encourage them to adopt Project. clean practices at home.” While more Haitians have gained access to In rural parts of Haiti, less improved drinking water sources over the last than half of the population Beneficiaries decade, reducing the gap between urban and rural has access to improved According to the Guatemalan Tourism Agency water access remains a challenge. In rural parts of water sources and only (INGUAT), 2,690 hotels and lodging places were Haiti, less than half of the population has access registered in 2012. According to the national to improved water sources and only 17 percent of 17 percent of people census, there are more than 1,000 MSMEs in the people have access to improved sanitation. have access to improved agribusiness sector. Consequently, about 4,000 sanitation. MSMEs could benefit from this pilot, either directly PAGE 50 PAGE 51 Solution promotion and training activities, focusing on the The World Bank partnered with the State and development of incentives to encourage Haitians to Peace-Building Fund (SPF) and the Haitian build, maintain and use their own toilets. National Water and Sanitation Directorate (DINEPA) to address the challenges of increasing Results access to water supply and sanitation services The project supported improvements in water and in rural communities of the South and Nippes sanitation through several key outcomes. departments of Haiti. The Rural Water Supply and Sanitation Project introduced a professional The main results of the water supply interventions management model involving local, professional include: water operators (OPs), which were selected and • Construction or rehabilitation of 15 contracted by the community to operate, maintain drinking water systems to serve 59,367 and manage the water supply systems. It also people. Systems were equipped with a Water Kiosk. Photo Jean-Martin Brault / World Bank promoted cost recovery, metering, and the use of chlorinator and each operator has a test kit water kiosks, as well as gravity-fed piped systems to measure water quality. The limited resources available for water supply The performance of water committees varied to minimize potential technical issues. Where • Establishment of a new management outside the Port-au-Prince metropolitan area were widely, but most water committees were not able pumping was necessary and cost-effective, the model in nine communities serving mostly used for urban water supply in secondary to collect sufficient funds for operation and routine project preferred renewable energy, such as solar. 49,712 people. The water and sanitation towns. In addition, the Ministry of Health’s rural maintenance. committees (CAEPAs) and OPs were water units had limited funds and had become The communities were selected by evaluating their trained in community mobilization, inactive. There was also no specific institution Adding to these challenges, a cholera epidemic willingness to pay for water services and by using conflict resolution, billing and accounting, responsible for sanitation. Without an institutional struck Haiti in October 2010 exposing the a participatory approach providing communities meter reading and repairing, chlorination presence in rural areas, it was difficult to prioritize important health risks related to low water supply with a series of choices for different water service as well as plumbing. In addition, following investments in order to reach the neediest citizens. and sanitation coverage in rural areas, as well as levels – household connection or water kiosk—and the cholera epidemic, members of Local communities could not properly maintain the need to speed up investments in building and different tariff structures. CAEPAs, OPs and plumbers were trained infrastructure and many rural water systems were rehabilitating water and sanitation infrastructure. in the basic response to cholera and other managed by water committees often consisting In line with the national sanitation strategy, the waterborne diseases. of unpaid volunteers elected by the community. Bank also conducted hygiene and sanitation PAGE 52 PAGE 53 • Installation of 1,598 household The main results of the sanitation interventions are: Partners Beneficiaries connections to water networks, and • Sanitation works in14 public schools and The State and Peace-Building Fund contributed The project has successfully increased access to construction or rehabilitation of 55 one health center reaching 5,547 students an additional $5 million. The professional water services in participating rural communities. water distribution kiosks and 34 public and teachers. operator management model was adopted by The water systems constructed or rehabilitated have fountains. • Construction or rehabilitation of 25 sets of the Inter-American Development Bank (IADB). benefited 59,367 people in 15 communities. The • Installation of eight boreholes with hand latrines, 25 urinals and 28 hand-washing Subsequently, the Bank and IADB have been project has also contributed to increasing access pumps serving 4,000 people. stations. coordinating investments and sharing lessons to and use of sanitation to 4,964 households in the • Training for 14 masons from seven learned. seven communities targeted for this intervention. communities and one Rural Development In addition, sanitation was improved in one health Units (URD) technician to build latrines in center and 14 schools which received a total of 25 Moving Forward the participating communities. new or rehabilitated latrine blocks to benefit 5,547 As a result of the successful implementation of • Training for 28 trainers and 28 community students and teachers. Finally, 27.5 percent of the professional operator management model workers in the Participatory Hygiene households surveyed in beneficiary communities in the South department, a new project is under and Sanitation Transformation (PHAST) reported having built a latrine with their own preparation to scale up the model to the national approach. resources in the last five years. level. The new project will accompany DINEPA • Launch of hygiene and sanitation in its decentralization process and in efforts to promotion campaigns on two regional achieve sustainable access to water supply and radio stations. sanitation services in rural areas and small towns. • Training sessions on hygiene promotion It will build on the lessons learned from the and sanitation in schools and health implementation of this project, from best practices centers, increasing the proportion of in sector reform from other countries and from households that own and use a latrine. global health and water supply and sanitation practices to help prevent and control cholera. World Bank Group Contribution The Bank contributed to DINEPA’s Rural Water and Sanitation Program with a $5 million grant in 2011. Water Kiosk. Photo Jean-Martin Brault / World Bank PAGE 54 PAGE 55 HAITI Capturing the Impact of the 2010 Haiti Earthquake Enhancing public sector financial management In the aftermath of the 2010 earthquake in Haiti, the World Bank provided significant technical assistance to the design and management of a national poverty survey, introducing the use of new data entry techniques. Haiti now has the first living condition survey in more than a decade, with reliable and detailed households consumption data for the first time since 1998, and the Haitian Institute of Statistics has enhanced capacity to implement reliable surveys for future use. Delmas 32, Port-au-Prince, Haiti. Photo: World Bank Collection Challenge in Haiti date back to 2001 when poverty was by 2010, the survey preparation was delayed due This success can be contributed to quality A troubled past, persistent weak governance and measured using income and international poverty to the disruption of the natural disaster and low preparatory work, which was supported by World civil unrest have resulted in staggering poverty lines. However, income is widely recognized as a capacity of the Government. Bank technical assistance to the Government rates in Haiti, very poor access to basic services, less optimal tool to capture welfare in a context like throughout the activity, as well as to the adoption and low human development indicators. Data Haiti. In February 2012 a new team, supported by the of an innovative use of tablets (instead of normal availability in the country has been limited due to World Bank, took over survey preparations and paper questionnaires) in the survey process. scarce resources and low capacity in the Haitian Solution successfully fielded the survey six months later. Institute of Statistics. As a result, knowledge on In the aftermath of the 2010 earthquake, Haiti Less than a year later, the data was available for living conditions in the country has traditionally sought to conduct a living conditions survey. While data cleaning and the quality was found to be very been limited. The only poverty rates available part of the sampling work was already finalized high, with only a 1.4 percent non-response rate. PAGE 56 PAGE 57 Results Beneficiaries The survey in general and the consumption data in The only poverty rates The direct beneficiary of this project was the particular will allow the establishment of a national available in Haiti date back IHSI, which benefited from extensive technical poverty line for the country, and a series of baseline assistance and the reliable data resulting from this to 2001 when poverty was indicators to monitor poverty and shared prosperity survey. By extension, the Haitian Government will measured using income and in the future. The survey has quickly become one of benefit from this activity, as decision makers will the building blocks of the new poverty monitoring international poverty lines. be able to base their policies on sound evidence. system for Haiti, which in turn is going to become a Finally, in the long term the people of Haiti powerful evidence-based tool for policy-making. Partners will benefit from this activity, particularly if it Successful survey completion was the result of a contributes to a new culture of monitoring and Furthermore, the activity was implemented in close partnership among three institutions: the Haitian evaluation and evidence-based policy making. collaboration with the Haitian Institute of Statistics. Institute of Statistics (IHSI), the World Bank The Institute benefitted from significant technical and DIAL, a French public research center. DIAL assistance in survey design and management, additionally contributed US$180,000 to the survey. including the use of new data entry techniques. A multi-sectorial poverty Moving Forward World Bank Group Contribution assessment was launched The next steps to the survey have already been he survey cost almost US$1.7 million to implement. based on the new evidence initiated: The activity benefitted from several sources of • A second wave of the survey was fielded 8 and is scheduled to be financing including: US$400,000 from the months after the initial wave; delivered in 2015/16. Spanish Fund for Latin America and the Caribbean • A national poverty line was developed with (SFLAC), which financed the technical assistance the Government of Haiti using the data involved in the preparatory phase of the survey; • A multi-sectorial poverty assessment was US$850,000 from the World Bank’s Infrastructure launched based on the new evidence and is and Institutions Emergency Recovery Project, scheduled to be delivered in 2015/16. which financed most of the survey costs; and US$463,000 from World Bank budget. Rosa Mercius, Haiti. Photo: Christelle Chapoy / World Bank Collection PAGE 58 PAGE 59 Solution and government securities systems, foreign HONDURAS This technical assistance project worked with exchange auction system, and interbank market, CNBS from 2004 to 2013 to help adopt a risk- enabling the efficient implementation of monetary based supervisory model by amending financial policy. Enhanced Stability in Honduras’ sector laws (including the Financial System Financial Sector Law) and issuing regulations governing their implementation. In addition, the project provided Results The financial system of Honduras has benefitted Improving performance and reducing risks of illegal transactions input for the operation of a high-level early from the initiatives supported by the project in warning committee of all relevant financial sector terms of improved performance and reduced risks: authorities able to undertake prompt corrective By 2003, the stability of the Honduran banking system was in question. This • The authorities found the initial actions if financial system entities deteriorate. It project contributed to restoring confidence by helping the Banking and Insurance diagnostics and business plans funded by also supported CNBS in improving its capacity to the project very useful to better understand Commission (Comisión Nacional de Bancos y Seguros, CNBS) and the Central detect illegal financial transactions, contributing and address the weaknesses of the system. Bank improve their operations. Together with a relatively stable macroeconomic to an increase in the number of suspicious • Supervision of the banking sector environment, the measures taken resulted in a significant increase in the volume of transactions reported monthly, from 12 in 2004 to improved significantly due to the savings in banks available to finance the economy. more than 60 in 2013. implementation of an ambitious plan to strengthen the supervisory capacity of Challenge for effective banking supervision, insufficient Moreover, the project helped modernize the CNBS. In October 1998, Hurricane Mitch hit Honduras loan loss provision reserves for loans adversely Central Bank of Honduras by acquiring and • Overall, the project contributed to with devastating effects that included a severe affected by exogenous shocks, low capital asset implementing a modern general ledger, an restoring confidence in the financial system shock to the financial sector due to an upsurge in ratios, and high numbers of non-performing automated foreign exchange auction module, a and consequently to the growth of the the volume of bad debt and substantial financial loans. In addition, there were major weaknesses Real-Time Gross Settlement (RTGS) System and economy through a higher savings rate and losses. By 2003, the stability of the Honduran in the legal framework and practices to combat Central Securities Depository, and an electronic greater availability of financing. Lending banking system was weakened. The 2003 Financial money laundering, and the country’s payments document management system. The new systems by banks went up from 31 percent of Sector Assessment Program (FSAP) update system had a number of structural shortcomings replaced numerous fragmented, cumbersome, GDP in 2004 to 42 percent in June 2013. highlighted significant vulnerabilities in the resulting in high exposure to credit, liquidity, legal, vulnerable and error-prone systems. Together, they Among other things, the total volume of financial sector, including weak compliance with operational, and settlement risks for both fund constitute the key financial infrastructure for the deposits in the banking system grew from the internationally accepted Basel Core Principles transfers and securities transactions. operation of the country’s large-value payments US$3.4 billion to US$9.1 billion between PAGE 60 PAGE 61 2004 and 2013. Bank performance also from up to four hours to less than a second, A Project Coordination Unit at CNBS, which while broadening them to address emerging needs improved significantly, with the level of and allowing participating banks to review provided fiduciary support to manage the project, of the general ledger and payments system. non-performing loans decreasing from 8.7 their transactions online. coordinated implementation. percent to 2.2 percent over the same time period. These new technologies also contribute to The international financial community—the World enhancing the operational efficiency of monetary Bank, the International Development Association and exchange rate policies. In turn, these benefits (IDA), the International Monetary Fund (IMF) and The authorities found the will help Honduras deepen its financial system to the Inter-American Development Bank (IDB)— initial diagnostics and serve more individuals and businesses in a less coordinated to support the reforms. The IMF business plans funded by the costly manner. provided a Poverty Reduction and Growth Facility. The IDB provided additional complementary project very useful to better technical assistance. IDA provided a subsequent understand and address the World Bank Group Contribution Photo: World Bank Collection policy loan in support of the policy reforms. weaknesses of the system. The total cost of the project was US$11 million at inception. The International Development Beneficiaries Association (IDA) contributed US$9.9 million Moving Forward The beneficiaries of this project include Honduran through a technical assistance loan. The The Bank and the Borrower are discussing financial institutions, whose performance has The Central Bank successfully introduced new options for further technical assistance in areas improved because of the strengthening of the Government of Honduras contributed US$1.1 banking technology: such as drafting regulations to implement new regulatory framework and financial system million. The Bank’s resources were used mainly to • The new general ledger and connected laws; developing a new supervisory framework infrastructure. The 21 percent of all adults in the strengthen the capacity of the Central Bank and systems (including the foreign exchange for the cooperative sector and others; developing country who hold an account at a formal institution the Banking and Insurance Commission through auction module) became operational in a financial inclusion strategy that would focus will also benefit, insofar as savings in the form of technical assistance and the acquisition of necessary 2012. on rural and agricultural finance systems and bank deposits and other investments will be less Information and Technology infrastructure. • The new RTGS payment system became the corresponding public sector activities; and vulnerable to potential losses. Greater confidence operational in March 2013 with all implementing measures to strengthen the oversight in the financial system will also contribute to a Partners banks connected. The RTGS has already of insurance and banking systems, including higher savings rate and thus greater availability of The principal partners were government agencies improved the efficiency and security of the aspects related to combating money laundering. financing for investments. directly involved with the financial sector, including country’s large payments, reducing the The Central Bank foresees further consulting and the Central Bank, CNBS, the Ministry of Finance, time needed to settle such transactions equipment needs to continue improving its systems and the Technical Secretariat of the Presidency. PAGE 62 PAGE 63 The Project helped improve the overall social HONDURAS protection system by developing a legal and policy framework for social protection and a coherent institutional structure to coordinate Better Nutrition and Job Skills budget allocations and monitor social protection for Youth in Honduras interventions. It expanded a community nutrition program to the six poorest Departments while The Nutrition and Social Protection Project piloting a parenting intervention to promote children’s cognitive, socio-emotional, and linguistic development and real-time cell phone monitoring With Bank support over several years, Honduras created a Ministry of Social to law of nutrition indicators. The Project worked closely a national Social Protection Policy, reached 36,000 children under two years old in with the private sector to implement an innovative 1,038 poor rural communities with nutrition services, and provided technical and youth employment program that combined life life skills training to improve the employability of 4,883 at-risk youth. skills training, technical skills instruction, and internships. Photo: World Bank Collection Challenge incomplete and low quality education. Results Solution In 2005, Honduras was one of the poorest The Government of Honduras was focused The International Development Association Credit The World Bank had been working with the countries in Latin America. Despite modest gains on addressing the challenge of breaking the supported the following results: Government to develop analytical and operational in poverty reduction in the 1990s, the prevalence of intergenerational transmission of poverty and • Development of a Social Protection Policy building blocks to support public efforts to reduce vulnerability remained high. For many, economic accelerating human capital accumulation through that was signed into law. poverty sustainably. Based on this foundation, and human development was beyond their reach integrated social policies targeted to the most • Creation of the Secretary of Social the Nutrition and Social Protection Project was and the most vulnerable were young children and vulnerable groups, with complementary social Development, mandated to oversee all designed to improve Honduras’ social safety net unemployed youth. These groups were exposed to protection interventions, as well as creating a social protection interventions. for children and youth and reduce the exclusion additional risks that increased their probability of framework for an integrated social protection • Establishment of a social protection of vulnerable groups by addressing three related being poor. For young children, the critical risk was system. information system, a beneficiary registry, social policy challenges: poverty, malnutrition, and chronic malnutrition; for youth 15-19 years of age, a social programs registry, and monitoring limited opportunities for youth. the risk was the inadequate level of skills due to and evaluation tools. These tools will PAGE 64 PAGE 65 provide a clear vision for social protection • Training of 4,883 at-risk youth, 47 percent harmonization of all stakeholders. Analytical the Department of La Paz said, “Yes, we had a girl and the means to implement it. of which are women, and 30 percent of work, policy dialogue and operational support for who was about to become malnourished, every • Delivery of nutrition services to 36,000 whom found employment within 6 months social protection were coordinated with the Inter- month with the same weight. I went to her house, children under two years old in 1,038 of graduation, even a in the challenging American Development Bank. Through the Project, went to visit, talked to the mother about what communities, resulting in a 4.7 percentage context of political crisis and restrictive the Bank was able to leverage US$1.2 million from how to feed her child. I was glad I went, and the point reduction in chronic malnutrition for labor laws for youth. The average salary for the Rapid Social Response (RSR) trust fund. mother learned. Now the girl is well.” children were involved in the program for beneficiaries was higher than the national an average of 12 months. average for that age group (15-19 years Moving Forward • If children had been involved in the old). The Project supported a transition agenda for The youth employment program for the full two years (birth • Establishment of an employment the new Government, summarizing the country’s model has been adopted and through age two), the reduction would information service, which now has budget achievements in social protection to ensure is being implemented by have been 11.5 percentage points using and personnel within the Secretary of continuity of human development policies. An other development partners the National Center for Health Statistics Labor. ongoing Social Protection (SP) Project will continue (NCHS) growth reference. in the country. to strengthen national capacity to administer social • Positive behavioral changes (e.g., exclusive World Bank Group Contribution protection programs, particularly the Conditional breastfeeding, feeding practices for The Project provided a total of US$20.9 million, of Cash Transfer program, Bono 10,000. The RSR children 6-24 months, etc.). which US$1.92 million financed social protection, grant has developed mobile technology for data US$12 million financed nutrition, and US$7 million collection to facilitate evidence-based decision financed youth employment. Additionally, US$1.2 making in nutrition. The youth employment model The Project worked closely million from the Rapid Social Response (RSR) trust has been adopted and is being implemented by with the private sector to fund was used to further strengthen the nutrition other development partners in the country through implement an innovative response. a €40 million project. youth employment program that combined life skills Partners Beneficiaries training, technical skills Consistent with the Paris/Accra harmonization When asked if mothers follow the efforts, the Project supported Honduras’ recommendations of the community nutrition instruction, and internships. development priorities and promoted program, one community worker (monitora) from PAGE 66 PAGE 67 Risky behaviors included participation in project. The project pooled Bank funds and other JAMAICA commercial and transactional sex, failure to use donor funds to allow the Government the flexibility condoms with non-regular partners, early initiation to finance different activities aligned with NSP of sexual activity, gender inequity and gender roles, priorities. This approach proved to be effective Jamaica Responds to HIV/AIDS poverty, and stigma and discrimination, all of which particularly when the 2008 global financial negatively affected the ability of individuals to crisis hit Jamaica and limited the resources for improve their health. implementing the NSP. From 2002 to 2012, Jamaica drew on World Bank funding to support its National Solution Jamaica was able to use the Bank loan as its HIV/AIDS Response. During this time period, Jamaican adult HIV prevalence was counterpart funding to meet a condition of a grant Between 2002 and 2012, Jamaica has drawn on maintained at less than 2 percent and new infections declined by 25 percent. By from the Global Fund to Fight AIDS, Tuberculosis World Bank funding to support its National HIV/ and Malaria. When funding improved, the reducing the mother-to-child transmission rate from over 10 percent in 2006 to 2.4 AIDS Response. Activities supported by the Government reallocated funds to allow the project percent in 2011, Jamaica is on track to achieve the regional target of eliminating project included increased condom distribution to catch up with delayed activities. mother-to-child transmission. and testing, delivery of integrated treatment to AIDS patients at 23 treatment sites, development of legislation to support an enabling environment, Results Challenge and a strengthened health system through the The following results were achieved under the In 2008, AIDS and other sexually transmitted upgraded capacity of the biomedical waste Jamaica Second HIV/AIDS Project: infections were the second leading cause of death management plan to treat 83 percent of annual for young people between the ages of 15 and 24. medical waste from public health facilities. Prevention Although prevalence rates varied across population • 91 percent of female sex workers reporting groups, men who have sex with men (MSM, 20-30 In 2008, the Jamaica Second HIV/AIDS Project condom use with their most recent client percent) and female sex workers (FSW, 9 percent) was prepared in eight months as part of the (target: maintain more than 90 percent). were the groups driving the epidemic. However, Government’s emergency response to HIV/ • 59.2 percent of female sex workers who heterosexual transmission was reported by 90 AIDS and in support of the financing needed to received HIV testing in the last 12 months percent of persons with HIV. implement the National HIV/AIDS Strategic Plan and who know the results (target: 50 (NSP). It included retroactive financing for a percent). Photo: World Bank Collection seamless transition from the first to the second PAGE 68 PAGE 69 • 40,445 female sex workers and 22,145 men • 1.4 percent of infants born to HIV infected Partners health, as well as to maximize coverage and health who have sex with men reached through mothers who are also HIV infected (target: The project was implemented by the Ministry outcomes and optimize the use of scarce resources. prevention activities (target: FSW 14,955; less than 5.0 percent). of Health, its four decentralized regional health This integration is expected to improve the National MSM 14,059). • More than 95 percent of antenatal clinic authorities, four non-health line ministries, civil HIV/AIDS Program’s capacity to attract funding • 19 percent of prison inmates reached clients counseled and tested for HIV society organizations, and the Jamaica Business and international assistance, providing a more through prevention activities (target: 15 (target: maintain more than 90 percent). Council. The project was critical in helping the optimal governance framework for project financing percent). Government leverage additional donor funds, and monitoring. The Bank remains engaged Strengthening Institutional Capacity for which included US$44.22 million from the with the Ministry of Health, providing technical Legislative Reform, Policy Formulation, Program Global Fund and US$26 million from the United assistance for the costing of the Non Communicable Management, Monitoring and Evaluation States Agency for International Development, Diseases National Strategic Plan. 91 percent of female sex • 100 percent of reported cases of HIV President’s Emergency Plan for AIDS Relieve workers reported condom related discrimination receiving redress (USAID/PEPFAR). Based on the sustainability Beneficiaries use with their most recent (target: 70 percent). study conducted by the Bank in collaboration with Project beneficiaries included: client. • 100 percent of institutions/organizations the Government and the United Nations Program • At-risk populations, particularly men who reached adopting HIV/AIDS policies on HIV/AIDS (UNAIDS), the Global Fund has have sex with men and female sex workers, (target: 93 percent). provided an additional grant of approximately benefited from the prevention programs. US$2 million to assist Jamaica during the • Persons living with HIV/AIDS benefited Treatment, Care, and Support transition from external to domestic financing of World Bank Group Contribution from better access to treatment, care, and • 10,469 men, women and children with the National HIV/AIDS Program. The Bank’s total investment contributions in support interventions. advanced HIV receiving antiretroviral support of Jamaica’s response to HIV/AIDS • Pregnant women and newborns benefited combination therapy according to national include the first loan for US$15 million, which was Moving Forward from the antenatal and prenatal programs. guidelines (target: 9,000). implemented between March 2002 and May 2008, Due to limited fiscal space, the Government has • School youth, prison inmates, and drug • 85.8 percent of HIV positive pregnant and the follow-on Second HIV/AIDS Project for focused on improving program efficiency and cost- users benefited from improved prevention women receiving a complete course of US$10 million, implemented between May 2008 effectiveness of interventions. In March 2013, the services. antiretroviral (ARV) prophylaxis to reduce and March 2013. National HIV/AIDS Program was integrated into the risk of mother-to-child transmission the National Family Planning Board to strengthen (target: maintain more than or equal to 80 the link between family planning, HIV, sexually percent). transmitted infections, and sexual and reproductive PAGE 70 PAGE 71 MEXICO Mucho Corazón: Using a soap opera as a vehicle for financial education in Mexico The World Bank assisted producers of a soap opera (telenovela) in Mexico with including messages related to basic financial education in the script. A qualitative evaluation showed that viewers like learning through entertainment media and Photo: http://mediaimpact.org/ those viewers who identified more closely with the characters in the soap opera were more likely to change their behavior. households own at least one set. To integrate Mucho Corazón is a typical telenovela—but with financial education with televised entertainment, a financial twist—intended to educate as well as the World Bank worked with the producers of the to entertain. It tells the story of Maruch, a young Challenge itself.” It is no surprise, then, that only 7 percent Mexican telenovela Mucho Corazón to include indigenous woman from a rural community in As financial inclusion spreads worldwide, the issue of Mexicans save in a formal account, compared to financial messages in several story lines across 7 of Chiapas. Creating a budget, saving, investing, and of how to provide effective financial capability a regional average of 10 percent. Moreover, only 35 episodes. World Bank staff advised the show’s avoiding financial abuse are all themes in Mucho training is a growing concern for policymakers. 12 percent of Mexicans in the bottom 40 percent producers on the selection of financial topics and Corazón. Data on the use of financial services in Mexico by income distribution have a formal transaction reviewed some scripts. indicate that many people could benefit from account, compared to 41 percent in Brazil. Mucho Corazón was broadcast in 2012 in Chiapas simple advice. The 2012 Mexican Financial and subsequently in approximately 20 other Capability Survey found that significant majorities Solution 95 percent of households Mexican states through state-owned TV channels agree with statements that show a short-term One area where Mexico does not lag is access own at least one TV set. and in six other countries, mostly in Central mentality such as “The future will take care of to television—approximately 95 percent of America. PAGE 72 PAGE 73 • The effects of the intervention were World Bank Group Contribution Future evaluation work with Mucho Corazón may context specific. To analyze and compare The Bank supported the project with a US$68,174 include outreach activities such as text or voice viewers’ reactions to Mucho Corazón, the loan. messages, which give viewers a concrete link to interviews asked respondents to evaluate government agencies or financial services to make it the clips on five dimensions. Data shows easier to take action. Partners the results regarding the savings theme for • The State Government of Chiapas both Oaxaca and Queretaro. Both groups Beneficiaries produced the telenovela with assistance understood the educational message about A 24-year-old woman from Oaxaca commented: from PCI Media Impact. savings and said it was conveyed clearly. In “It is a subject [audiences in] Oaxaca would be Photo: http://mediaimpact.org/ • PCI Media Impact, a New York-based Oaxaca, viewers also indicated a high level interested in, since we do not have a culture of nongovernmental organization that helped of identification with the topics and said saving money.” Results the State Government of Chiapas produce they experienced a “change of perception” Lessons were drawn from a qualitative evaluation the telenovela. that could lead to behavior change. Oaxaca A young man in Queretaro, when asked whether of the financial messages in Mucho Corazón in • Simo Consulting conducted the evaluation is one of Mexico’s southernmost states, he would prefer to learn about financial topics two Mexican states, Queretaro and Oaxaca. The research. borders Chiapas (where Mucho Corazón through a soap opera or more traditional methods research included twelve diverse focus groups was produced and filmed), has a large such as a classroom presentation, said he favored and 32 individual interviews, in both of which Moving Forward indigenous population, and incomes are the soap opera. He said it allows him to see how participants saw the same short scenes from Further study using quantitative methods is below the national average. Residents someone can develop financial skills by watching the telenovela where financial issues were being planned to complement this qualitative study. of Queretaro, by comparison, were less the characters in the drama, which is easier to addressed. The two most important results that likely to identify with the clips, and few understand than just being told what to do. emerged were: The knowledge that effects are context specific (i.e., indicated that their attitudes were affected • People liked learning through that respondents from Queretaro did not identify by a “change of perception” that could lead entertainment media. Viewers enjoyed with the show and did not change their attitudes to behavior change because of the show. learning about financial topics through about the educational themes, but viewers from Queretaro is north of Mexico City, is more Mucho Corazón and saw financial topics Oaxaca experienced more change) is informing urban and has a higher-income population. as an advantage for the soap—something future broadcast plans for the soap opera, which In other words, Mucho Corazón was useful and new in entertainment will likely focus on more rural, indigenous more effective where people more closely programming. In particular, viewers saw populations. identified with the characters and setting. the discussion on savings positively. PAGE 74 PAGE 75 Solution MEXICO Beginning in 2011, the World Bank supported While the approach was the state Governments of Campeche, Michoacán, consistent across states, the Oaxaca and Zacatecas to prioritize interventions Bank’s support was tailored Timely Interventions to Reduce for climate change adaptation. The World Bank to the needs of each state. Climate Change Vulnerability approach consisted of Strategic Environmental Assessments that combined: in Mexico • Solid analytical work. intensity of storms, while higher temperatures, • Participatory mechanisms. reduced water availability, and impacts on • A focus on institutions and governance. agriculture were identified as priorities in • Social learning mechanisms. Michoacán and Zacatecas. In Oaxaca, the Bank The Mexican states of Campeche, Michoacan, Oaxaca, and Zacatecas initiated a supported the preparation of the Climate Change multi-stakeholder process that led to the integration of plans with feasible and The analytical work included the preparation of Atlas, which provides a series of maps of the state’s climate change scenarios, while the engagement broadly supported interventions to reduce climate change vulnerability in each regions, districts and municipalities, illustrating of a broad range of stakeholders (including from state. These processes were crucial for the state Governments to elaborate their data on climate change, extreme weather events, academia) focused on the validation of such respective Climate Change Action Plans. bioclimatic parameters and droughts. scenarios, prioritization of impacts, and selection of feasible interventions to address priority Challenge the state’s emissions baseline and inventory, impacts. Results Mexico is recognized as a global leader in define climate change scenarios, identify priorities The efforts supported by the Bank from 2011-2013 addressing the challenges of climate change. for adaptation, and, where relevant, mitigation Another key element of the Bank support was the helped to identify climate change adaptation It has enacted one of the most comprehensive actions, and set forth specific actions to achieve identification of the institutional reforms needed priorities in each state, recognizing their different legal frameworks on climate change, embraced these priorities. CCAPs thus reflect the individual to support these interventions. While the approach circumstances and vulnerabilities. As a result, ambitious targets to lower emissions, and begun situation in each state and indicate specific was consistent across states, the Bank’s support relevant state authorities have approved the policy the preparation of plans to manage and address the mitigation and adaptation measures. was tailored to the needs of each state. papers based on a participatory process to prioritize risks of climate change. In addition, all 31 states actions and more than 50 percent of actions are requested to prepare specific Climate Change Key issues identified in Campeche included coastal called for in the policy papers are now reflected Action Plans (CCAPs). Each CCAP must establish erosion, sea level rise and higher frequency and in corresponding work plans and programs in PAGE 76 PAGE 77 Zacatecas, Oaxaca, Quintana Roo and Campeche. Moving Forward In addition, guidelines to prepare state climate Building on the states’ climate change plans, change action plans based on Social Accounting the Government of Mexico is interested in a Matrices have been prepared for Campeche and subnational initiative for Green and Inclusive Quintana Roo. Growth that will focus specifically on working with subnational Governments in the Yucatán Peninsula Consequently, Campeche, Oaxaca, Zacatecas and region with the objective of piloting green, inclusive Michoacán submitted their Climate Change Plans to growth in key areas in the region. Resilience the Federal Government by early 2013. Additional and social inclusion are the key themes for this work in Campeche, Yucatán and Quintana Roo on initiative. Green Inclusive Growth is ongoing. Beneficiaries World Bank Group Contribution The types of beneficiaries are broad in nature and This analytical work was financed through a grant extend to both the public (direct) and private sector from the Spanish Fund for Latin America amounted (indirect). a total of US$350,000. The World Bank will provide additional financing supporting the states’ efforts regarding a regional green inclusive growth strategy for the Peninsula of Yucatán. Partners Key partners in completing this analytical and convening work were the Instituto Nacional de Ecologia y Cambio Climatico (INECC) and the Nature Conservancy (TNC). Hiervelagua, Oaxaca, Mexico. Photo: Marcelo Guerrero. Freeimages CC©. PAGE 78 PAGE 79 In addition, most sales by rural farmers in request credit based on confirmed credit sales PARAGUAY Paraguay are informal. In a 2012 market study, documented by deferred checks issued by the buyer 53 percent of farmers reported that sales were (concentrators, supermarkets). CAH discounts undocumented. Many farmers sell their products these checks and, at maturity date, cashes them, Mobile Factoring, a new at low prices due to weak access to markets and cancelling the credit. This system will be further solution to boost small urgent need for cash. Others, incorporated into value chains, usually sell on credit but need tested by CAH during the pilot phase. farmers’ productivity liquidity. in Paraguay Solution The World Bank assisted Crédito Agrícola de Habilitación (CAH) – a public financial institution A public financial institution in Paraguay designed and tested a new financial mandated to boost rural development by fostering product to provide working capital to small farmers. A proof of concept access to finance for micro and small agricultural demonstrated that a factoring solution implemented on mobile phones can producers (MSAPs) – with the design of a mobile effectively ease access to finance for small farmers. Scaling up the solution – factoring scheme. starting with an upcoming pilot – may boost small farmers’ productivity. Assistance included the design of an electronic platform through which MSAPs could request Challenge (68 percent), information requirements (65 credit over confirmed credit sales to registered In Paraguay, agricultural value added is about 20 percent), and physical distance (57 percent). buyers as well as the design of procedures, both percent of GDP (10 year average), and agriculture of which were tested during the proof of concept. employs about 24 percent of the labor force. Yet, A training material, key element to ensure final many agricultural producers face challenges in Many farmers sell their users’ understanding of mobile factoring, was also financing their activities. In 2006-2007, only 18 products at low prices due prepared. percent obtained credit. Farmers and farming to weak access to markets associations report that the top barriers to The sale and credit processes are registered obtaining working capital are high interest rates and urgent need for cash. through the electronic platform. The MSAP may Photo: World Bank Collection PAGE 80 PAGE 81 Results During the proof of concept, internal processes at • Sistemas Electrónicos del Paraguay S.A. Beneficiaries Four successful transactions were processed during CAH were put in place, tested, and adjusted for the (SEPSA), technology partner. SEPSA Concepción Iberbuden is a small agricultural the proof of concept. These were result of real sales pilot phase that will come next. The Administrative developed the electronic platform to producer in charge of sales of bananas from done by small cooperatives of farmers to the Central Council approved the final version of the protocols support the implementation of factoring Cooperativa Pacova Poty to CEPACOOP. He Paraguaya de Cooperativas (CEPACOOP). Credits in November 2013. on mobile technology. SEPSA is the considers CAH’s new product of great importance were disbursed and cancelled from June 2013 to largest company in Paraguay providing because it gives him security about getting the cash January 2014 and channeled through 3 MSAPs that A final user training manual was delivered to IT solutions to manage mission critical needed to distribute payment on time. act as the small cooperatives’ person in charge of CAH. The manual explains financial concepts and transactional operations using Electronic preparing sales orders received from CEPACOOP. illustrates in detail the process for mobile factoring Data Interchange (EDI). “Disbursements from Argentina are every 30 to The small cooperatives involved were Cooperativa operations during the pilot. As such, the manual 40 days, sometimes we have problems with [the Guayaivi Unido (95 members) from Guayaibí, itself (in addition to the proof of concept) is a key other] producers because they need to pay their Moving Forward District of San Pedro, and Cooperativa Pacova input to the upcoming pilot. bills, clean or sanitize their banana plantations; Due to legal restrictions on fully-electronic Poty (90 members) from Tembiapora, District of with this product we receive payment within the implementation (including the fact that electronic Caaguazú. On average, each credit (approximately World Bank Group Contribution week [of sale] and this is very helpful for the small invoices and electronic signatures have not yet been 40 days) based on a sale of bananas to CEPACOOP The Bank supported the Project with a US$276,300 cooperative, the producers, and the buyer.” implemented in Paraguay) the pilot will follow the directly benefits 20 people, including agricultural loan. same mix of paper-based and electronic processes producers and workers that prepare the loads. used in the proof of concept. Partners • Crédito Agrícola de Habilitación (CAH) in For the pilot, CAH will negotiate with a local Paraguay, project client. telecommunications company to deliver mobile • Japan International Cooperation Agent phones to MSAPs and will provide training. (JICA), main partner. JICA financed a legal viability analysis and the market Once the pilot ends, CAH should work to provide research to evaluate the potential market price information through the platform demand, among Paraguayan MSAPs, for and upgrade its system to fully integrate the a factoring solution and the challenges factoring scheme. New developments would also be and opportunities for CAH to offer mobile required once electronic invoices and signatures are Photo: World Bank Collection factoring as a viable product. implemented. PAGE 82 PAGE 83 strengthening the social compact between the Results PERU Government and the general population. While a Understanding the constraints on implementation lack of financial resources can complicate service is critical for improving local governments’ delivery, as evident in some municipalities in performance as well as for informing national-level Improving Service Delivery in Peru, the availability of funds does not guarantee considerations, like subnational capacity-building Peru their use. (Municipal budget execution was 72.9 percent in 2011, pointing to a suboptimal use of strategies and resource allocations. In order to understand these constraints and possible Supporting Service Delivery through National and Subnational Public Sector resources.) Given the gaps in service delivery and solutions, three analytical pieces were produced: Strengthening the availability of public resources, the focus of dialogue has shifted from the availability of funds • Case studies of municipal development and Focusing on the connection between public expenditures and results, technical towards how funds can be used more effectively public management in mining areas. and efficiently to support development outcomes. • A literature review of recent analyses assistance supported the Government of Peru’s work to improve service delivery of public management, investment and by strengthening the performance of national and subnational public entities. outcomes in Peru (with an emphasis on the Analyses contributed to a better understanding of the issues associated with these Solution subnational governments). key public sector development priorities and helped to continue dialogue on future Building upon recent decentralization efforts, • A municipal-level analysis linking public engagement. work undertaken in previous years, and the financial management and outputs/ growing importance of extractive industries, a outcomes. Work also contributed to set of analytical products designed to assess the Challenge identifying activities within the scope of determinants of public expenditure, propose In Peru, there is significant dispersion in the Local Governance and Mining (PKS), recommendations to strengthen public spending municipal-level service delivery and outcomes; emphasizing the Apurimac region. and development outcomes, as well as improve the percentage of the population without access institutional capacities at national and sub-national to water ranges from 3.1 to 100 percent (2007), Work focused on improving national government levels was prepared. These products were intended while municipal level poverty rates range from capacity to monitor national goals supported the to inform decision-makers, serve as a basis for approximately 0.1 to 97.8 percent (2009). Over Presidency of the Council of Ministers (PCM) generating dialogue around complex questions in recent years, the Government has been particularly in identifying potential areas for institutional state modernization, and provide inputs for more concerned with improving service delivery and, strengthening and possible future improvements targeted future engagement. through raising awareness of this progress, to administrative systems under the PCM’s Photo: World Bank Collection PAGE 84 PAGE 85 responsibility (civil service, strategic planning, and Moving Forward public sector modernization). Supporting public sector management at the PERU national and subnational levels remain key The Non-Lending Technical Assistance (NLTA) priorities for both Peru and the Bank, and also fostered dialogue and helped to identify areas technical assistance in these areas is continuing. Peru Improves Social Inclusion for future engagement, on topics such as tax and Recent engagement includes collaboration with Enhancing Capacity to Design, Monitor and Evaluate Social Policies customs administration, logistics, and civil service IFC to carry out municipal public management reform. assessments in Apurimac, and a new non-lending technical assistance activity focused on fiscal Peru’s Ministry of Development and Social Inclusion (MIDIS), and the National resources and improving the quality of public Statistics Office (INEI), have deepened their knowledge sharing about the World Bank Group Contribution Analytical products were developed under the scope investment and public spending. costs and benefits of alternative targeting formulas for resource allocations and of a non-lending technical assistance activity. The programs. In addition, the MIDIS has strengthened its evidence-based decision Beneficiaries project drew upon Bank expertise, international making by consolidating its system of monitoring and evaluation (M&E). The main beneficiaries of this NLTA were the consultants with experience in both national and Ministry of Finance (MEF), the Presidency of the sub-national modernization, and discussions with Council of Ministers (PCM), the National Fund authorities. Challenge program targeting discussions, thereby increasing for State-Led Business Activity (FONAFE), and To improve its social inclusion policies, the the overall policy relevance of the poverty maps. the Regional Governments of Apurimac and San Partners Peruvian government identified the following Martin, as the analytical products developed under No other partners were involved in this particular challenges: Increasing the value of M&E information in MIDIS: this NLTA were targeted at informing the decision- NLTA. However, the Integral Analysis of Logistics The information generated by the M&E systems is making and public management practices of these in Peru NLTA (P145783) and discussions on Poverty mapping for better targeting: To guide the only valuable if it is broadly used. Under traditional institutions. In addition, dialogue fostered with possible future technical assistance on tax allocation of resources to poor areas, poverty maps M&E arrangements, the efforts of the evaluation the Ministry of International Trade and Tourism administration and customs intervention that were are an extremely important and relevant tool from area are concentrated in generating evidence. (MINCETUR) and the National Superintendence of developed under the scope of this NLTA involve an operational and political economy context. The However, in many cases, the users of the evidence Customs and Tax Administration (SUNAT) helped partnerships with the IFC and the Swiss State technical challenge was to identify the best way do not have the technical capacity, the resources, to identify additional areas of collaboration with Secretariat for Economic Affairs (SECO). to estimate the maps. Additionally, the challenge or the incentives to use this information to improve these agencies. was to connect the production of the maps by INEI evidence-based policy decisions. to the use of the maps by MIDIS in their social PAGE 86 PAGE 87 Solution Results World Bank Group Contribution Moving Forward The non-lending technical assistance (NLTA) The technical support translated into concrete The Bank provided funding of US$174,000 for The World Bank will continue to explore areas of provided by the Poverty and Social Inclusion NLTA actions to improve the impact of social programs this technical assistance. The technical assistance collaboration and support to both INEI and MIDIS II to INEI ranged from completing the technical in Peru. The poverty map support to INEI had consisted in: to further strengthen the use of data in evidence- validation of the existing poverty maps, presenting significant impact on the discussion about targeting • Analytical work to validate the poverty based policymaking. Potential areas of technical a proposal to the Peruvian Poverty Committee of programs. As a result, INEI is starting to work maps; support to INEI include pursuing an Open Data about the best way to estimate the maps, and to develop a new poverty map in the context of a • Hiring a firm to develop mobile apps; initiative by strengthening the current Application opening a broader discussion about targeting Poverty Committee which includes MIDIS, with the • Analytical work and advice on M&E; Programming Interface (API) to improve data in Peru. In addition, the technical assistance support of the Bank. • Training on poverty mapping and Tableau; accessibility and usability by policy makers and supported activities with the more concrete • Support for dissemination activities; citizens. objective of promoting the effective use of M&E The collaboration between INEI and MIDIS on • Inviting international experts to Peru to information in the policy cycle. As part of this work this area is a big step forward for the policy impact meet with the Government officials. Beneficiaries the team has contributed to: of poverty mapping, as the new map will likely This activity contributed to improving the targeting • Production of mobile apps to facilitate the help MIDIS to improve their targeting. Moreover, and effectiveness of inclusion policies, which Partners use and increased transparency of MIDIS this project has helped to solidify the relationship eventually will benefit the Peruvian people in the The main partners have been INEI, MIDIS, and the information. between INEI and MIDIS. INEI has been able to inclusion process. Peruvian Poverty Committee. • Development of a logical framework for demonstrate their high quality technical capacity, the M&E activities in MIDIS focused on which in turns gives credibility to the social bridging the gap between the producers program targeting by MIDIS. (M&E team) and the users (the social programs) of the evidence. This project has also contributed to the • Production of analytical products on sustainability and functionality of the M&E system poverty and social inclusion to serve as by supporting the strategy of how MIDIS’ General instruments to motivate and influence Direction of Monitoring and Evaluation (DSGE) policies in MIDIS and in Peru. works within the ministry. Screenshot of the MIDIS Social Programs’ Map. World Bank PAGE 88 PAGE 89 part of the national network of emergency shelters. impacted by Hurricane Tomas, and also made SAINT VINCENT AND THE GRENADINES Critical roads were cut by landslides or by the provisions for advancing risk analysis skills and flooding of major rivers. tools used by the government for hazard mapping. After Hurricane Tomas, Saint During and after the hurricane, community The investments under the HTERP focused on Vincent and the Grenadines residents in certain areas were isolated and shelter facilities were damaged or inaccessible increasing the resilience of physical infrastructure, while including functional considerations, for Strengthens its Resilience for several days. As a consequence, the impact of instance introducing gender-specific restrooms the hurricane was even more severe on the most for reducing gender-based violence and improving An emergency recovery project left the country better prepared for future natural disasters vulnerable groups. disabled access at shelter facilities. Under the project, civil works targeted areas Following the devastation caused by Hurricane Tomas in 2010, the Government During and after the with the highest levels of poverty, hence most of Saint Vincent and the Grenadines supported the rehabilitation of damaged vulnerable to natural hazards. Moreover, the hurricane, community infrastructure serving highly vulnerable population and advanced its ability to HTERP recognized the importance of enhancing residents in certain areas manage disaster risk data. The project focused on retrofitting social infrastructure, institutional capacity in order to improve were isolated and shelter integrating gender and social focus in the rehabilitation works. post-disaster responsiveness as a framework facilities were damaged for encouraging mitigation and risk planning or inaccessible for several complimentary to the country’s response Challenge to landslides and flash flooding. Furthermore, days. mechanisms. In the Eastern Caribbean, the probability of a increased disaster events have resulted in hurricane in any given year is about 18 percent, significant expenditures, generally not accounted Results underscoring the need for disaster risk reduction for in the national budget, thus constraining Solution The project supported the increased resilience and emergency preparedness. economic growth. The Hurricane Tomas Emergency Recovery Project of physical infrastructure, and the enhancement (HTERP) accelerated the recovery of critical of institutional capacity to improve disaster Saint Vincent and the Grenadines’ vulnerability to Hurricane Tomas took a heavy toll on the country’s infrastructure following Hurricane Tomas. The preparedness and risk reduction through: natural hazards has been exacerbated by its deeply socio-economic development, with significant project retrofitted schools, community centers, road • Rehabilitation and hurricane retrofitting dissected topography, making the country prone damage to schools and community centers that are and river defense infrastructure that were heavily of schools and community centers which PAGE 90 PAGE 91 double up as emergency shelters. Three When the December 2013 storm hit, the Beneficiaries schools and three community centers were impact assessments were able to utilize the The project particularly prioritized the most retrofitted with critical improvements, baseline conditions of some buildings to vulnerable groups, namely poor communities including roof repair, hurricane-resistant better assess the damage that occurred. lacking access to emergency shelters as well as windows and gutters, emergency water those needing gender-segregated washrooms and supplies, etc. Special consideration was World Bank Group Contribution disability ramps. taken in building gender-segregated The total amount of the Bank’s contribution washrooms and disability access ramps, amounted to US$5 million, financed by the IDA. The investments have benefitted more than 2,175 and the most vulnerable communities school users and community centers during regular (highest poverty levels) were targeted for operations and as shelters. At project closure, in Moving Forward intervention. In the December 2013 storm, December 2013, over 225 people made homeless Ensuring complementary among its disaster which resulted in flooding and landslides, by exceptionally severe floods were sheltered in two risk management initiatives, the Bank continues four out of six of these facilities were community centers rehabilitated by the project. to support vulnerability reduction and climate activated as shelters and housed people for Similarly, some of the newly installed school resilience in Saint Vincent and the Grenadines over eight weeks following the disaster. emergency water systems were used to provide through the larger Regional Disaster Vulnerability • Road repair and river defense works. water to neighboring communities at the peak of Reduction Project (RDVRP) operation. The rehabilitation of Hopewell Road and the emergency. the flood protection works on the Teviot This project scales up rehabilitation to other critical and Zenga rivers improved the main vulnerable infrastructure as well as continues to communication artery between the capital strengthen the government’s capacity to analyze Kingstown and its airport with the Eastern disaster risk with more advanced analyses. side of the island, with daily traffic flows of Furthermore, in May 2014 the Bank approved an 3,000 vehicles on average. Additional Financing to the RDVRP of US$40.6 • Increasing the government’s risk mapping million of which US$19 million were provided by capabilities. Through training and the the Bank’s Crisis Response Window as emergency establishment of a Hazard and Risk response to the December 2013 storm. Modeling Database, the country is better equipped to undergo predictive planning. Photos: World Bank PAGE 92 PAGE 93 One of these indicators is improved handling of major areas in need of improvement: poor sector TRINIDAD AND TOBAGO investor inquiries, by 20 percentage points by 2015 information, service inconsistency, and a need compared to the 2012 baseline. to place more emphasis on promotion as a key element of facilitation. The GIPB provided specific Winning Investors Who Come For these reasons, Trinidad and Tobago needed recommendations to address each of these areas. Knocking to improve its investment facilitation services and requested a second GIPB assessment from The Bank organized a workshop with senior policymakers to discuss a way forward, followed by Trinidad and Tobago Improves Investment Facilitation the Bank. The 2013 GIPB assessment found a full-day working session with InvesTT’s President that InvesTT had improved its inquiry handling and staff to discuss the GIPB assessment results performance by 7 percentage points compared in more detail and develop an action plan for Investment facilitation—effectively providing potential investors with country and to its 2012 results. In addition, it identified continued improvement. sector information—is crucial to winning much needed foreign investment. An objective measurement of the performance of the investment facilitation services of InvesTT led to a number of operational recommendations that, following discussions with senior policymakers and agency staff, became the building blocks for an action plan designed to improve InvesTT’s responsiveness to investors over the coming year. Challenge Solution Effectively responding to inquiries from foreign In line with World Bank recommendations, the investors is a critical first step towards attracting Government of Trinidad and Tobago separated investment into desired sectors. However, a InvesTT from Evolving TecKnologies and Global Investment Promotion Best Practices Enterprise Development Company Limited (eTecK) (GIPB) assessment in 2012 found that investment as the country’s dedicated investment promotion facilitation services in Trinidad and Tobago were agency. In addition, in an effort to diversify its in need of improvement, with investor inquiries economy, the Government developed a four-year handled at average levels compared to the rest of sector development plan with disbursement of the world. funds tied to the achievement of specific indicators. Image: www.investt.co.tt PAGE 94 PAGE 95 Results maritime, agribusiness, tourism, clean technologies World Bank Group Contribution investment facilitation effectiveness of InvesTT. The six detailed operational recommendations and creative industries—to analyze further This activity was completed as a Just-In-Time Future assessments will likely be incorporated into delivered to the Government in the 49-page results their competitiveness, develop winning value Reimbursable Advisory Service (RAS). The budget a larger technical assistance program currently report, combined with the workshop discussions, propositions, and make them a clear priority within for this work was under US$50,000. It was under discussion. Additionally, CIC remains increased implementation capacity for the client InvesTT’s facilitation strategy. The new President of completed within four months. The Bank utilized its available to respond to follow up questions from agency. This result will help the Government InvesTT joined the workshop and agreed with the long-standing Global Investment Promotion Best InvesTT. increase the quality of facilitation services offered recommendations in the report and expressed her Practices (GIPB) survey methodology. to investors by minimizing service inconsistency, commitment to developing new strategies. Beneficiaries improving promotion of priority sectors, and The program’s direct beneficiaries include the Partners strengthening customer service. By using two ‘mystery shopper’ investors, the GIPB MTIIC and InvesTT. Implementation of the report’s This engagement was a successful collaboration assessment provided an objective measurement recommendations will also benefit the private across several Bank groups, including Finance and The GIPB informed Government policies and of InvesTT’s facilitation performance from the sector in Trinidad and Tobago because investors Private Sector Development for Latin America strategies. Senior officials from the Ministry of investors’ point of view and shed light on five will receive higher quality information and and the Caribbean (LCSPF) and the joint World Trade, Industry, Investment, and Communications specific areas for improvement. These included: assistance from the country’s investment promotion Bank-International Finance Corporation (IFC) (MTIIC) including the Permanent Secretary, staff • Lack of follow-up to convert investor agency. Ultimately, the people of Trinidad and Investment Climate Department (CIC). The IFC from Monitoring and Evaluation (M&E), Trade interest into strong leads. Tobago will benefit as increased investment in the office in Port of Spain provided invaluable local and Investment, Policy/Strategy, and members • Inconsistency in the quality and depth of private sector contributes to growth and creates support. The GIPB methodology is jointly owned by of the Board and management of InvesTT agreed responses to investor inquiries. jobs. the Bank, the IFC, and the Multilateral Investment that more attention needed to be paid to the • Limited efforts in promoting Trinidad Guarantee Agency (MIGA). Key external partners newly identified priority sectors—among them & Tobago and its key sectors online and Racquel Moses, the President of InvesTT, stated: included the Ministry of Trade, Industry, information and communications technology (ICT), offline. “From my perspective, the GIPB assessment was Investment, and Communications (MTIIC) and • Less than optimal customer service as a the single most important input to our strategic InvesTT. The four-year sector development plan result of a burdensome inquiry screening planning that assisted InvesTT in defining was partially funded by the European Commission. This result will help the mechanism. our goals and potential as an IPA [investment Government increase promotion agency].” Moving Forward the quality of facilitation InvesTT is now considering instituting its own The Government has requested additional mystery shopper testing as a means to monitor the services offered to investors. annual GIPB assessments through 2015 aimed level of services offered to investors. at measuring and continuously improving the PAGE 96 PAGE 97 Latin America and Caribbean Region The World Bank 1818 H Street, NW Washington, DC 20433, USA http://wbi.worldbank.org/sske/result-stories http://www.worldbank.org/results/ This book was produced by the Latin America and Caribbean Regional Operations Unit in collaboration with Latin America and Caribbean External Communications Unit October 2014