A WORLD BANK GROUP MANAGEMENT REPORT ON IMPLEMENTATION OF IEG RECOMMENDATIONS FY24 MAR Better Results through Learning and Adaptation for a Better World Bank Group: The FY24 Management Action Record ACKNOWLEDGMENTS This report was jointly prepared by a team from the World Bank (WB), International Finance Corporation (IFC), and Multilateral Investment Guarantee Agency (MIGA). The work was carried out under the overall supervision of: Paloma Anós Casero (Director, OPSRL) and Lisandro Martin (Manager, OPSSR), both of Operations Policy and Country Services (OPCS) in the WB; Anastasia Gekis (Director, CSMCS), and Liane Lohde (Manager, CSMCS) in IFC; and Sebnem Erol Madan (Director, MIGES) and Hiroyuki Hatashima (Chief Evaluation Officer, MIGES) in MIGA. The lead specialist guiding the process in IFC was Ayesha Muzaffar (CSMCS). The Task Team Leaders from the WB responsible for the overall update and the collaboration with IEG were Atul Deshpande and Maurya West Meiers (OPCS). Coordinating the update for IFC were Yeukai Mudzi (Consultant, CSMCS) and Peixuan Zhou (Strategy Analyst, on special assignment to CSMCS); and for MIGA, Vlajko Senic (Consultant, MIGES). In OPCS, Eduardo Fernandez Maldonado, Mili Varughese, Tanushri Majumdar, Matteo Goffredo, Ellinore Carroll, Stephanie Lukins, Ariya Hagh, and Espen Bernton participated in reviews, writing, and analysis, and preparing visualizations; Francesca Gentile was responsible for the overall design; Jacob Bathanti led the copyediting; and Mimoza Velo managed general coordination and scheduling. The MAR coordination team worked closely with IEG counterparts in a highly productive collaboration, including Stephen Porter, Task Team Leader of the IEG MAR Validation, Arjun Kaushik, and Rocio Manchado Garabito of the core IEG MAR team, and over 22 IEG evaluators. The MAR was informed by inputs from over 150 contributors from across the WBG for the 28 evaluations under review. These contributors include managers and technical focal points across numerous units, along with directors, global directors, and vice presidents in consultations and reviews with their teams. This report would not have been possible without the technical focal points who met with the MAR coordination team and IEG colleagues to discuss the progress for each recommendation, and who then provided qualitative and quantitative inputs to substantiate progress in the implementation of IEG recommendations. © 2024 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington, DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org ATTRIBUTION. Please cite the report as: World Bank. 2024. Better Results through Learning and Adaptation for a Better World Bank Group: The FY24 Management Action Record. Washington, DC: World Bank. This work is a product of the staff of the World Bank Group. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of the World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of the World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. RIGHTS AND PERMISSIONS. The material in this work is subject to copyright. Because the World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights@worldbank.org. Management has prepared this FY24 MAR. The Independent Evaluation Group reviews this report and prepares its own validation report, the Independent Evaluation Group Validation of the Management Action Record 2024. See more information about the historic Management and Validation reports at https://ieg.worldbankgroup.org/management- action-record. MAR REPORT About the Fiscal Year 2024 (FY24) Management Action Record (MAR) Following the FY20 MAR reform process, this year’s MAR continues to make improvements to provide better information in a more accessible format. In this document, the overview reflects on the context in which the MAR has been developed with a discussion on the overall assessment, lessons learned in this year’s MAR, and a look ahead. This is followed by the highlights of evidence of progress toward outcomes of evaluation recommendations, including the Management self-assessment for each evaluation. PEOPLE PLANET INFRASTRUCTURE DIGITAL PROSPERITY CROSS-CUTTING CORPORATE CONTENTS MAR REPORT Page Acknowledgments Interior Cover Abbreviations iv Executive Summary v Chapter 1: Overview of Performance 1 Chapter 2: Evidence of Progress and Self-Assessment: Highlights 5 Annex I: Proposals for Recommendation Retirement I Annex II: Methodology II Tables, Charts, Figures, and Boxes Page Table A Aggregate Management Assessment* of Levels of Progress Achieved (# of Recommendations) v Table B Evaluations by Theme, Year, and Organization viii Table C FY24 MAR Management Assessment for Each Recommendation ix Table 1.1 Aggregate Management Assessment of Levels of Progress Achieved (# of Recommendations) 2 Table II.I MAR Assessment Framework FY24 II Figure 1.1 FY24 MAR Thematic Groupings and Evaluation Topics vii Figure 1.2 FY24 Featured Evaluations 1 Figure 1.3 Pathways of Change: Examples of How Recommendations Are Implemented 3 Chart 2.1 Nutrition-contributing Projects and Nutrition Commitments, FY19 vs. FY23 5 Chart 2.2 Average Global Health Security Index (GHSI), by Income Group, 2021 6 Chart 2.3 World Bank Projects with SWM Components since FY21 7 Chart 2.4 IFC Waste and Circularity Investment Projects with Concept Approval, FY23-24 7 Chart 2.5 Increase in Committed Amounts for DRR Activities in Underserved Sectors and Regions IEG 8 Identified Chart 2.6 Increased Focus on Projects that Support Agri-food Economies 8 Chart 2.7 Average Resilience Investments Leveraged (USD) per 1 USD of GFDRR Grants 9 Chart 2.8 World Bank Support by Lending Source for RE Scale-up 9 Chart 2.9 Increased Support for Managing Urban Spatial Growth 10 Chart 2.10 Increased Average Yearly Lending for Demand-Side Energy 11 Chart 2.11 Increase in Share of RW-financed Projects with PDO Indicators 12 Chart 2.12 Number of (Unique) Tool Uses,* Fragile and Conflict-affected States 13 Chart 2.13 Count and Share of Institutionalization PPAs 13 Chart 2.14 Average Share of High-risk/ in Distress Countries that Applied LIC-DSA to Define PPAs Between 14 2021-2023 (in % of PPA eligible countries) Chart 2.15 Inefficient Tax Expenditures Lead to Significant Tax Revenue Being Forgone 14 Chart 2.16 Increased Use of Structured Finance, including to Support SMEs ($, M) 15 Chart 2.17 PCM by Institutions within WBG, US$ 16 Chart 2.18 Global Footprint Staffing Trend: WB FCS-based Staff (Excl. Ethiopia & Nigeria) 16 Chart 2.19 Increased IFC and MIGA Involvement in FCS MIGA Gross Portfolio and IFC Total Finance since FY19, 17 US$ Billion Chart 2.20 Progress in Reduction of Number of Trust Funds 18 Chart 2.21 Increased adoption of High-Level Outcomes (HLOs) in Country Engagements 19 Chart 2.22 Evolution of World Bank Global Footprint since FY20 (Excluding IFC and MIGA. Open and Term 20 staff only.) Box 2.1 Progress on Mobilizing Technology 11 Box II.I Criteria for the Retirement of Recommendations for FY24 II iii A B B R E V I AT I O N S AIMM Anticipated Impact Measurement and MDB Multilateral Development Bank Monitoring MDTF Multi-donor Trust Fund CCDR Country Climate and Development Report MFD Maximizing Finance for Development CD Change of Direction MIC Middle Income Countries CEM Country Economic Memorandum MIGA Multilateral Investment Guarantee Agency CESA Citizen Engagement and Social Accountability MPA Multiphase Programmatic Approach CODE Committee on Development Effectiveness MSWM Municipal Solid Waste Management COVID-19 Coronavirus Disease 2019 MTI Macroeconomics, Trade and Investment Global CPF Country Partnership Framework Practice CPL City Planning Labs NRM Natural Resources Management CPSD Country Private Sector Diagnostic OPCS Operations Policy and Country Services, WB CRP City Resilience Program PASA Programmatic Advisory Services & Analytics DEC Development Economics Vice Presidency PC Progress Constrained DFI Development Finance, WB PCF Planning, Connecting and Financing DPO Development Policy Operations PCM Private Capital Mobilization DRR Disaster Risk Reduction PDO Project Development Objective DSEP Debt Sustainability Enhancement Program PEFA Public Expenditure and Financial Accountability DT4D Disruptive Technologies for Development PFDM Public Financial and Debt Management Initiative PforR Program for Results DTT Disruptive and Transformative Technologies PFM Public Financial Management EE Emerging Evidence PPA performance and policy actions EFI Equitable, Growth, Finance, and Institutions PSW Private Sector Window EMDE Emerging Markets and Developing Economies RI Regional Integration E&S Environment and Social RRA Risk and Resilience Assessment ESG Environmental, Social, and Governance SAR South Asia Region, WB FCS Fragile and conflict-affected situation SCD Systematic Country Diagnostic FCV Fragility, Conflict and Violence SDFP Sustainable Finance Debt Policy FY Fiscal Year SE Stakeholder Engagement GBV Gender-based Violence SEFF Strategic External Funding Framework GEMS Geo-Enabling Initiative for Monitoring and SDG Sustainable Development Goal Supervision SOE State-Owned Enterprise GP Global Practice SRT Significant risk transfer GRID Green, Resilient, and Inclusive Development TA Technical Assistance HLO High Level Outcomes TOR Terms of Reference HNP Health, Nutrition, and Population UN United Nations IBRD International Bank for Reconstruction and UNHCR United Nations High Commissioner for Refugees Development VPU Vice-Presidential Unit IEG Independent Evaluation Group WB World Bank IDA International Development Association WBG World Bank Group IFC International Finance Corporation iSOEF Integrated State-Owned Enterprise Framework All dollar amounts are US dollars unless otherwise LE Limited Evidence indicated. LGAF Land Governance Assessment Framework LIC Low-Income Country LMIC Lower-Middle Income Country LRS Locally-recruited staff M&E Monitoring and Evaluation MAR Management Action Record MCPP Managed Co-Lending Portfolio Program iv Management Action Record (MAR) FY24 EXECUTIVE SUMMARY Following the 2020 Management Action Record (MAR) reforms, World Bank Group (WBG) Management prepares an annual self-assessment of its progress toward implementing the full range of outstanding Independent Evaluation Group (IEG) evaluation recommendations. The purpose of the Management Action Record (MAR) assessment system is to support accountability, learning, and adaptation for the WBG’s implementation of recommendations from IEG evaluations. This report is built on information gathering and sharing with IEG. In turn, IEG reviews Management’s self-assessment to judge progress toward achieving the outcomes of active recommendations. The recommendations involve, among other things, actions to enhance operational modalities, inform risk taking, improve guidance for staff, and improve results measurement systems. As part of the accountability function of the MAR, both Management’s self-assessment and IEG’s review are discussed with the Committee on Development Effectiveness (CODE) annually. The 2024 Fiscal Year (FY24) MAR reports on progress in implementing 77 recommendations from 28 evaluations, with 32 new recommendations in the FY24 cycle. 1. Management continues to assess progress in the implementation of recommendations with greater candor in information sharing and rigor in evidence reviews. This approach has been evident in reviewing the last three MAR cycles. In FY24, Management’s assessments of progress show a more balanced distribution across the range of progress levels achieved, based on reviews of evidence and outcomes (see Table A). Thirty-four percent (or a total of 26) of the 77 active recommendations are self-assessed at the "limited evidence (LE)" level, up from 19 percent in FY23. Sixty-nine percent (18) of this increase in LE self-assessments is driven by new recommendations introduced into the MAR cycle, with 31 percent (eight) of the LE assessments driven by existing recommendations from FY23. A higher share of recommendations (22 percent in FY24 versus 10 percent in FY23) achieve a “change of direction” (CD) level, with the rise explained partially by early achievement of progress for some recommendations. The middle category of “emerging evidence” (EE) remains comparably similar in absolute numbers, with 32 in FY24 and 39 in FY23, but represents a lower share, with 41 percent in FY24 compared to 66 percent in FY23. The change is due partially to the distribution of progress changes in other categories. The share of recommendations described as “progress constrained” remains almost unchanged since the FY23 MAR cycle (3 percent in FY24 and 5 percent in FY23). Table A. Aggregate Management Assessment* of Levels of Progress Achieved (# of Recommendations) Assessment Category FY22* FY23* FY24* FY25 Progress Constrained (PC) NA 3 (5%) 2 (3%) Limited Evidence (LE) 3 (6%) 11 (19%) 26 (34%) Emerging Evidence (EE) 38 (70%) 39 (66%) 32 (41%) Change of Direction (CD) 13 (34%) 6 (10%) 17 (22%) Total Recommendations (# Evaluations) 54 (18) 59 (22) 77 (28) 69 (25) Expected Recommendation Retirements -18 (-7) at the end of FY24 (Evaluations) Incoming Recommendations for FY25 (Evaluations) +10 (+4) See Annex II on Methodology for a description of the assessment framework. *Numbers shown are from Management’s annual self-assessments and not IEG’s validations. 2. Progress has been made on recommendations tracked between FY23 and FY24 in the MAR. For the subset of recommendations in the FY24 MAR that were part of the FY23 MAR cycle (n=45), 25 have progressed, 17 have been assessed at the same level, and 3 have backtracked. Seven recommendations reached the time criterion for “automatic” retirement (five have been assessed as having reached the CD level, with one as PC, and one as LE). Of these, management will not retire the remaining citizen engagement recommendation (assessed as LE) and will instead monitor it for an additional year. Overall, with outgoing and incoming evaluations and recommendations, the FY25 MAR is expected to report on 69 recommendations and 25 evaluations. v Management Action Record (MAR) FY24 3. Management has concerns about the volume of recommendations in recent years and is working with IEG on possible solutions. The (net) volume of recommendations reported in the MAR rose by 31 percent in FY24 (77 in FY24, 59 in FY23) with a total of 28 active evaluations, most (86 percent) with two or more recommendations. Management has worked with IEG to address overlapping elements in recommendations across related evaluations to reduce redundancy in reporting and both Management and IEG intend to review the relevance of recommendations for MAR reporting on an ongoing basis. Furthermore, Management and IEG continue to confer on how recommendations can be clearer and more actionable. In the FY24 MAR, both Management and IEG have determined a set of prioritized evaluation topics for additional focus (see Chapter 1). Management is developing ways to make the MAR process nimbler, and the FY24 MAR after-action review will consider more efficient processes with a view to implementing improvements in the FY25 cycle. Management has worked to identify the stakeholders that can best respond to evaluations that have a broad focus and cut across the organization. 4. Implementation of the evaluation recommendations complements other ongoing WBG efforts to improve development effectiveness. Evaluation responses reference how the topics under review are adjusting to new contexts and are aligned to the Evolution and Better World Bank Group initiatives: the Scorecard, Global Challenge Programs, WBG Guarantee Platform, WBG financing model changes, scaling up private sector development, and others. IEG evaluations identify areas where progress is being made by the WBG, and flag areas for improvement. When recommendations are being well implemented, this strengthens the overall development effectiveness of WBG efforts, and the FY24 MAR shows several examples. In some cases, due to a shifting context, certain recommendations may be proposed for early retirements (if they do not reach the CD level), though none fit that category this year. 5. Management is undertaking measures to further optimize learning from the MAR process. In the FY24 cycle, Management has recommitted to its FY23 approach of designating champions for each evaluation, who identify key milestones to ensure success in implementing recommendations. In most evaluation updates, lead staff, managers, directors, and sometimes vice presidents have been involved more directly as contributors or reviewers. The pathways of change concept that Management articulated in FY23 has been broadened to consider leadership directions and momentum through the Better Bank efforts. Working-level engagements and iterative information sharing among Management’s technical staff and IEG staff have built the foundation of this report and contributed to learning, feedback loops, and adaptation. In response to the External Review of IEG (December 2022), Management has joined with IEG on an action plan to better emphasize learning and adaptation across the whole evaluation cycle, from the concept phase to the end of the MAR period. Next, staff and client capacities in monitoring and evaluation (M&E) and data are being prioritized—including through operational clinics on Scorecard data planning and reporting, client M&E capacity development and delivery programs under design (jointly with, among others, OPCS, IEG’s Global Evaluation Initiative, and the East and Southern Africa, and West and Central Africa, regions of the World Bank Group), and a new DEC-led talent board to nurture staff working in data science and statistics. Equipping staff and clients with improved skills and knowledge is intended to aid in planning, monitoring, managing, evaluating, and using results data for decision-making. These efforts have direct ties to both the Scorecard and Knowledge Compact for Action. vi Management Action Record (MAR) FY24 FIGURE 1.1. FY24 MAR THEMATIC The WBG’s new vision of a “world free of poverty on a livable planet” is accompanied by a revamped Scorecard, crafted as a GROUPINGS AND EVALUATION tool to translate vision into action, ensure accountability for results, and support adaptive learning. Organized around a set of TOPICS Outcome Areas, it is aligned with the five verticals of People, Prosperity, Planet, Infrastructure, and Digital, along with cross- cutting themes of gender, fragility, jobs, and private capital. The MAR report’s thematic groupings and topics are primarily motivated by the Scorecard structure. Mobilizing Technology DIGITAL for Development (FY21) Regional Integration (FY19), SOE Reforms (FY21), Public Finance and Debt Management (FY21), Doing Business PROSPERITY DIGITAL (FY22), Sustainable Development Finance Policy (FY22), LIC Debt Sustainability Urban Resilience (FY20), Framework (FY23), INFRASTUCTURE Renewable Energy Domestic Resource (FY21), Urban Spatial PROSPERITY Mobilization (FY23), Growth (FY22), Energy COVID-19 Economic Efficiency (FY23) Response (FY23) PRIVATE: Private Capital CROSS-CUTTING INFRASTRUCTURE Mobilization (FY21), Private Investment in GENDER GENDER FCV FCS (FY22), IFC FCV Additionality in MICs PRIVATE Natural Resource PRIVATE (FY23) PLANET INVESTMEN INVESTMENT Degradation and Vulnerability (FY21), CROSS-CUTTING FCV: WBG Engagement Municipal Solid Waste in Situations of Conflict Management (FY22), (FY22) Disaster Risk Reduction GENDER: Gender (FY23), Agrifood Equality in FCVs (FY23) Economics (FY23) PLANET Citizen Engagement CORPORATE (FY19), Convening Power (FY20), Undernutrition (FY22), Outcome Orientation PEOPLE Covid-19 Health and (FY21), Global Social Response (FY23) CORPORATE Footprint Effectiveness (FY22) MAR THEMES FY24 PEOPLE vii Management Action Record (MAR) FY24 TABLE B. EVALUATIONS BY THEME, YEAR, AND ORGANIZATION This table provides the shorthand names for evaluations in the FY24 cycle, with the FY when each evaluation was completed, the number of active recommendations (“Rec”) compared to the original total, and whether the evaluations’ active recommendations apply to the World Bank (B), IFC (I), and/or MIGA (M)—B/I/M is recorded as WBG-World Bank Group. See Table C for more detailed information on each evaluation and recommendation. FISCAL YEAR FY ACTIVE THEME EVALUATION 19 20 21 22 23 PUBLISHED # REC ORG Undernutrition ⚫ ⚫ 22 2 of 2 B PEOPLE Covid-19 Health and Social Response ⚫ 23 4 of 4 B Natural Resource Degradation and Vulnerability ⚫ ⚫ ⚫ 21 3 of 3 B Municipal Solid Waste Management ⚫ ⚫ 22 3 of 3 WBG PLANET Disaster Risk Reduction ⚫ 23 4 of 4 B Agrifood Economics ⚫ 23 3 of 3 WBG Urban Resilience ⚫ ⚫ ⚫ ⚫ 20 2 of 5 B Renewable Energy ⚫ ⚫ ⚫ 21 1 of 3 WBG INFRASTRUCTURE Urban Spatial Growth ⚫ ⚫ 22 3 of 3 B Energy Efficiency ⚫ 23 4 of 4 WBG DIGITAL Mobilizing Technology for Development ⚫ ⚫ ⚫ 21 3 of 3 B/I Regional Integration ⚫ ⚫ ⚫ ⚫ ⚫ 19 1 of 6 B SOE Reforms ⚫ ⚫ ⚫ 21 2 of 2 WBG Public Finance and Debt Management ⚫ ⚫ ⚫ 21 2 of 2 B Doing Business ⚫ ⚫ 22 4 of 4 B/I PROSPERITY Sustainable Development Finance Policy ⚫ ⚫ 22 3 of 3 B LIC Debt Sustainability Framework ⚫ 23 4 of 4 B Domestic Resource Mobilization ⚫ 23 4 of 4 B COVID-19 Economic Response ⚫ 23 2 of 2 WBG Private Capital Mobilization ⚫ ⚫ ⚫ 21 2 of 3 WBG CROSS-CUTTING WB Engagement in Situations of Conflict ⚫ ⚫ 22 4 of 4 B Private Investment Private Investment in FCS ⚫ ⚫ 22 2 of 2 I/M FCV Gender IFC Additionality in MICs ⚫ 23 3 of 3 I Gender Equality in FCV ⚫ 23 4 of 4 B/I Citizen Engagement ⚫ ⚫ ⚫ ⚫ ⚫ 19 1 of 5 B Convening Power ⚫ ⚫ ⚫ ⚫ 20 3 of 3 B/I CORPORATE Outcome Orientation ⚫ ⚫ ⚫ 21 1 of 1 WBG Global Footprint Effectiveness ⚫ ⚫ 22 3 of 3 B Total 77 viii Management Action Record (MAR) FY24 TABLE C. FY24 MAR MANAGEMENT ASSESSMENT FOR EACH RECOMMENDATION This table provides the detailed recommendation text, the WBG institutions to which each recommendation applies, the FY23 and FY24 Management assessment levels, FY23 IEG assessment levels, and the proposals for retirement denoted as and for early achievement of change of direction progress denoted as . Evaluation / Recommendations (original recommendation numbering used) Assessment Retire / Early CD ORG Mgmt IEG Mgmt Retire PEOPLE FY22 World Bank Support to Reducing Child Undernutrition ORG FY23 FY23 FY24 1 Adjust nutrition programming in country portfolios to (i) give more priority to B LE LE EE institutional strengthening for coordination and implementation of multisectoral nutrition interventions; and (ii) increase focus on subnational targeting of interventions to reflect areas of greatest disadvantage and persistency of need. 2 Strengthen nutrition support in Global Practices to (i) rebalance investments to B LE LE EE have greater emphasis on nutrition-specific interventions and (ii) increase focus on social norms interventions and behavior changes, with more attention to tracking expected achievements to improve nutrition determinants. FY23 The World Bank’s Early Support to Addressing COVID-19 Health and Social Response ORG FY23 FY23 FY24 (An Early-Stage Evaluation) 1 Use the World Bank’s crisis recovery efforts to strengthen the resilience of essential B NA NA EE health and education services to ensure that human capital is protected in a crisis. 2 Apply a gender equality lens to health and social crisis response actions across B NA NA LE sectors. 3 Help countries strengthen regional cooperation and crisis response capacities for B NA NA LE public health preparedness. 4 Build on the COVID-19 experience to strengthen the World Bank’s internal crisis B NA NA EE preparedness so that it has the tools and procedures ready to respond in future emergencies. ORG Mgmt IEG Mgmt Retire PLANET FY21 The Natural Resource Degradation and Vulnerability Nexus: An Evaluation of the ORG FY23 FY23 FY24 World Bank's Support for Sustainable and Inclusive Natural Resource Management (2009-2019) 1 The World Bank should identify and analyze natural resource degradation and B EE EE EE vulnerability nexus issues and leverage this knowledge in SCDs and in country engagements where such issues matter for achieving sustainable poverty reduction and shared prosperity. 2 World Bank operations that address natural resource degradation should direct B EE EE EE attention to resource governance challenges and use a mix of resource management practices and financial incentives appropriate for the relevant socioecological systems. 3 World Bank Global Practices involved in addressing natural resource degradation B LE EE LE and associated vulnerability should share knowledge, improve measurement, and enhance coordination in the design and implementation of their projects to optimize development effectiveness. FY22 Transitioning to a Circular Economy: An Evaluation of the World Bank Group's ORG FY23 FY23 FY24 Support for Municipal Solid Waste Management (2010-20) 1 To achieve more sustainable and scalable outcomes in municipal waste WBG EE EE CD management, Bank Group technical and financial support to clients should give clear priority to the adoption and implementation of waste hierarchy practices, in line with client needs and capabilities for MSWM. ix Management Action Record (MAR) FY24 2 To support the LICs where municipal solid waste is growing most rapidly, the Bank WBG EE EE CD Group should identify constraints on demand and investments and leverage external partnerships to implement context-specific MSWM solutions. 3 To bring prominence to and spur action on the global municipal solid waste agenda, WBG EE EE CD the Bank Group should take up a clear leadership position, collaborating and convening with developmental partners. FY23 Reducing Disaster Risks from Natural Hazards: An Evaluation of the World Bank’s ORG FY23 FY23 FY24 Support FY10-20: An Evaluation of the World Bank’s Support FY10-20 1 Incorporate DRR activities in regions and sectors and for hazards that exhibit B NA NA CD significant coverage gaps. 2 Identify and measure the effects of DRR activities on exposure and vulnerability to B NA NA EE strengthen the development case to clients facing serious disaster risks. 3 Integrate the needs of populations that are disproportionately vulnerable to B NA NA EE disasters caused by natural hazards into DRR project targeting and design, implementation, and results reporting. 4 In countries affected by serious natural hazards and fragility and conflict risks, B NA NA EE identify and assess the ways in which hazards and conflict interrelate, and use this knowledge to inform country engagement and project design. FY23 Toward Productive, Inclusive, and Sustainable Farms and Agribusiness Firms: An ORG FY23 FY23 FY24 Evaluation of the World Bank Group’s Support for Development of Agri-Food Economies (2010-2020) 1 To enhance its effectiveness in developing agrifood systems, the Bank Group’s WBG NA NA EE efforts to support production technologies should be complemented by efforts to improve market access, especially in LICs and in countries at the traditional stage of agrifood system development. 2 To achieve more sustainable agrifood systems, where conditions permit, the Bank WBG NA NA LE Group should support production diversification to meet the growing demand for undersupplied, high-value-added nutritious products while ensuring that smallholder farmers and SMEs benefit from the diversification. 3 To enhance the contribution of IFC support for agrifood system development, IFC I NA NA LE should pilot and adopt more effective ways to support clients to better meet E&S Performance Standards, especially in LICs. ORG Mgmt IEG Mgmt Retire INFRASTRUCTURE FY20 Building Urban Resilience: An Evaluation of the World Bank Group's Evolving ORG FY23 FY23 FY24 Experience (2007-2017) 2 The design and implementation of World Bank projects that build urban resilience B EE EE CD should systematically incorporate resilience characteristics and articulate their application throughout the project cycle. These should include the following: (i) design standards in line with resilience risks, (ii) cost-benefit analysis in line with resilience risks, (iii) city and interjurisdictional coordination, and (iv) inclusive approaches for vulnerable people. 3 In urban areas where the client has identified crime and violence as a resilience risk, B PC EE PC the World Bank’s support should be based on a localized typology of crime and violence that is informed by relevant analytic work. This approach should be supported by an assessment of the mechanisms most effective at reducing crime and violence within operations. FY21 Evaluation of the World Bank Group's support for electricity supply from renewable ORG FY23 FY23 FY24 energy resources, 2000-2017 2 WBG to support RE scale-up through comprehensive, long-term country WBG EE EE CD engagements, with coordinated WBG solutions, based on the comparative advantages of each institution, to address barriers, aided by robust upstream diagnostics. x Management Action Record (MAR) FY24 FY22 Managing Urban Spatial Growth: World Bank Support to Land Administration, ORG FY23 FY23 FY24 Planning, and Development 1 Adopt a framework that links the determinants of urban expansion to pathways for B EE EE EE managing urban spatial growth and that contributes to the achievement of Sustainable Development Goals (SDGs) 1 and 11. 2 Support World Bank clients with anticipating and preparing for urban spatial growth B LE LE EE using preventive approaches, not just curative ones. 3 Strengthen and ensure implementation of the World Bank’s protocol to identify and B LE LE LE record precise project locations and collect land market data necessary to support clients with managing urban spatial growth. FY23 World Bank Group Support to Demand-Side Energy Efficiency ORG FY23 FY23 FY24 1 Intensify DSEE support to MICs for decarbonization and wider socioeconomic WBG NA NA EE benefits. 2 Develop energy efficiency sector-specific approaches in a select group of LMICs that B/I NA NA LE seek productivity gains alongside or via DSEE, even if energy efficiency policy reforms are in early stages. 3 Expand DSEE approaches by incorporating reduction of indirect emissions (scope 3), B/I NA NA LE including embodied and operational carbon, in DSEE project design. 4 Exploit untapped DSEE opportunities and help clients leapfrog—that is, develop B/I NA NA EE innovative approaches that adopt and adapt digital and financial solutions from developed countries by exploring cross–Practice Group (World Bank) and cross– industry group (IFC) interventions and approaches. ORG Mgmt IEG Mgmt Retire DIGITAL FY21 Mobilizing Technology for Development: An Assessment of World Bank Group ORG FY23 FY23 FY24 Preparedness 1 Where DTT offers opportunities to make progress on the twin goals more effectively B/I EE LE EE or efficiently, ensure that the Bank Group avails itself of those opportunities and addresses, in particular, the risks posed by DTT. 2 Build a Bank Group workforce with the skills required to harness DTT opportunities B/I EE LE EE and mitigate DTT risks by identifying DTT-relevant skills, determining gaps in these skills, and filling these gaps. 3 Improve the effectiveness and efficiency of World Bank procurement for complex B EE EE EE technology projects. ORG Mgmt IEG Mgmt Retire PROSPERITY FY19 Two to Tango: An Evaluation of World Bank Group Support to Fostering Regional ORG FY23 FY23 FY24 Integration 5 Strengthen the design of IDA Regional Window supported projects to improve the B CD CD CD assessment of spillover effects and to generate evidence based on robust indicators. FY21 State Your Business! An Evaluation of World Bank Group Support to the Reform of ORG FY23 FY23 FY24 State-Owned Enterprises, FY08-18 1 The World Bank Group should apply a selectivity framework for SOE reform support WBG EE EE EE that considers country governance conditions, control of corruption, and sector and enterprise-level competition. 2 The World Bank Group should apply the MFD and its embedded Cascade approach WBG EE EE EE for SOE reform. FY21 World Bank Support for Public Financial and Debt Management in IDA-Eligible ORG FY23 FY23 FY24 Countries 1 World Bank should regularly monitor the quality of the key pillars of PFDM for each B EE EE CD IDA-eligible country, possibly through a centralized country-specific PFDM assessment. xi Management Action Record (MAR) FY24 2 Actively use the previously described assessment to prioritize and sequence World B LE LE CD Bank support for PFDM capacity building and reform in IDA-eligible countries. FY22 The Development Effectiveness of the Use of Doing Business Indicator: Fiscal Years ORG FY23 FY23 FY24 2010–20 1 Recognizing the powerful motivational effect of reform indicators, especially those B/I LE LE LE that facilitate country rankings, this evaluation notes the limitations in the coverage and guidance offered by any single indicator set on its own and advocates integrating them with complementary analytic tools and indicators. 2 Recognizing the granularity and specificity of individual reforms in any given country B/I PC PC PC context, the findings from this evaluation suggest that it is better to avoid using business regulatory or similar global indicators as explicit reform objectives or monitoring indicators in Bank Group projects and country strategies focused on improving the business environment. This does not preclude the use of primary data to agreed targets that track and measure critical Bank Group institutional commitments. 3 Global indicators coverage and specifications are improved if, at regular and B/I LE LE LE predictable intervals, they are updated to reflect learning from research and field experience to (i) improve links to important development outcomes; (ii) strengthen relevance to the experience of the subject of coverage; and (iii) adapt to technological changes in the areas covered by the indicators. 4 The DB experience indicates the need for mechanisms and safeguards to assure the B/I PC PC LE accuracy and validity of Bank Group global indicator–based reports and related communications, using robust and transparent standards of evidence. FY22 The International Development Association’s Sustainable Development Finance ORG FY23 FY23 FY24 Policy: An Early-Stage Evaluation 1 Consideration should be given to expanding the countries covered by the DSEP B EE PC CD beyond those at moderate or high levels of debt distress or in debt distress. IEG recommends applying an additional filter. 2 PPAs should emanate from an up-to-date assessment of country-specific debt stress B LE LE EE and be set explicitly within a longer-term reform agenda. 3 Where PPAs support actions that need be taken regularly (for example, debt B LE LE CD reporting to parliament), PPAs should aim for long-lasting institutional reforms rather than relying on one-time actions. FY23 The World Bank’s Role in and Use of the Low-Income Country Debt Sustainability ORG FY23 FY23 FY24 Framework 1 Expectations of the World Bank in taking the lead on long-term growth prospects B NA NA LE should be clarified. Given the World Bank’s development mandate, the current guidance is appropriate but comes with the expectation that the World Bank systematically take the lead in highlighting the country-specific factors that influence long-term growth, which is not currently the case. 2 The recently increased attention to debt data coverage should be sustained and B NA NA EE extended; greater attention is needed to assess data quality. 3 The DSA should be more directly and consistently used to inform priorities for the B NA NA LE identification of fiscally oriented prior actions in development policy operations and SDFP performance and policy actions. 4 The World Bank should continue to give increasing attention in the LIC-DSF to the B NA NA LE long-term implications of climate change, in terms of both growth and fiscal requirements of adaptation and mitigation. xii Management Action Record (MAR) FY24 FY23 World Bank Support for Domestic Revenue Mobilization: An Independent ORG FY23 FY23 FY24 Evaluation 1 On a country-by-country basis, regularly take stock of the findings of the broad B NA NA EE range of tax diagnostics tools and instruments to (i) identify knowledge gaps and (ii) more systematically inform priority setting for country-level policy dialogue, capacity building, and operations to improve DRM. Rigorous analysis and diagnostics are needed to inform country-specific DRM strategy and operational priorities, particularly in IDA-eligible countries. 2 Given the potentially large and regressive fiscal impact of tax exemptions, the World B NA NA EE Bank should regularly assess the effectiveness and efficiency of tax exemptions in achieving country-specific policy objectives, with an eye to more actively supporting the sustainable reduction of regressive tax exemptions through policy advice and prior actions in DPOs. 3 The frequency with which tax policy reforms are reversed calls for strengthening B NA NA LE incentives to sustain reforms and make reversal more challenging. 4 Provide clearer guidance to staff on the choice of results indicators to measure the B NA NA LE impact of DRM support, facilitate learning from experience, improve monitoring of progress toward DRM-related objectives, and promote an outcome orientation in the World Bank’s support for DRM. FY23 The World Bank Group’s Early Support to Addressing the Coronavirus (COVID-19): ORG FY23 FY23 FY24 Economic Response (April 2020-June 2021) An Early-Stage Evaluation 1 To effectively address future crises, codify a global crisis response playbook, ideally WBG NA NA EE developed jointly with the IMF. 2 To respond effectively during the recovery phase of the crisis, explore increasing WBG NA NA EE use of structured finance solutions (such as partial credit guarantees, subordinated debt, and quasi-equity instruments) with a view to supporting small- and medium- size firms. The COVID-19 crisis has left many firms with potential debt overhang. ORG Mgmt IEG Mgmt Retire CROSS-CUTTING FY21 The World Bank Group's Approach to the Mobilization of Private Capital for ORG FY23 FY23 FY24 Development: An IEG Evaluation 2 Expand PCM platforms, guarantees, and disaster risk management products WBG EE EE CD commensurate with project pipeline development. 3 Develop new products and improve product alignment with the needs of new I/M EE EE CD investor groups and partners. FY22 World Bank Engagement in Situations of Conflict: An Evaluation of FY10-20 ORG FY23 FY23 FY24 Experience 1 To enhance the conflict sensitivity of World Bank engagement, ensure that B EE EE CD politically sensitive, confidential analysis is generated, retained, and managed so that it can be used by select future staff working on that country. 2 Ensure that country engagements are informed by timely analyses of conflict B EE EE EE dynamics and risks. 3 Address factors that dissuade World Bank engagement in conflict affected areas. B EE LE EE 4 In conflict affected countries, rethink what success looks like. B LE EE EE FY22 The International Finance Corporation’s and Multilateral Investment Guarantee ORG FY23 FY23 FY24 Agency’s Support for Private Investment in Fragile and Conflict Affected Situations, Fiscal Years 2010–21 1 IFC and MIGA should continue to review their financial risk, make more explicit the I/M EE LE LE implications of IFC’s portfolio approach for FCS, and enhance capabilities to address nonfinancial risks to ensure they align with achieving business growth targets and impacts in FCS. 2 To focus on the development of bankable projects, IFC and MIGA should further I/M EE LE EE recalibrate their business models, client engagements, and instruments to continuously adapt them to the needs and circumstances of FCS and put in place mechanisms to track their effectiveness for real-time learning. xiii Management Action Record (MAR) FY24 FY23 International Finance Corporation Additionality in Middle-Income Countries: An ORG FY23 FY23 FY24 Independent Evaluation 1 To enhance institutional accountability, learning, and transparency, address gaps in I NA NA LE internal systems related to monitoring, supervision, and reporting of additionality at the project and portfolio level. 2 To enhance commitment to and fulfillment of IFC’s strategic objectives, IFC should I NA NA LE bring its strategy for additionality in MICs and its pattern of activity in MICs into closer alignment. 3 To enhance its strategic approach to proactive creation of markets and mobilization I NA NA LE of private capital to provide a critical contribution to the Sustainable Development Goals, IFC should incorporate its additionality approach into its country strategies and sector deep dives. FY23 Addressing Gender Inequalities in Countries Affected by Fragility, Conflict, and ORG FY23 FY23 FY24 Violence: An Evaluation of the World Bank Group’s Support 1 Make priorities regarding gender equality (including on WGEE and GBV) more B/I NA NA LE explicit in country strategies, based on strong analytics (primarily Systematic Country Diagnostics and the World Bank Risk and Resilience Assessments) and in collaboration with key stakeholders. 2 Foster engagements with communities, civil society, women’s organizations, local B/I NA NA LE authorities, and other key stakeholders to define gender equality objectives and the actions to achieve them. 3 Ensure that gender expertise tailored to the context is available for FCV-affected B/I NA NA LE countries to support projects, as well as the country engagement. 4 Coordinate and collaborate with relevant international stakeholders engaged in B/I NA NA LE gender equality in the country, including humanitarian actors. This stronger coordination and collaboration should leverage each actor’s comparative advantage to achieve common goals. ORG Mgmt IEG Mgmt Retire CORPORATE FY19 Engaging Citizens for Better Development Results ORG FY23 FY23 FY24 3 The World Bank should strengthen the monitoring of its citizen engagement B EE EE LE activities by systematically adopting results framework indicators that are results oriented. FY20 The World's Bank: An Evaluation of the World Bank Group's Global Convening ORG FY23 FY23 FY24 1 Scope engagements and contributions to major global convening initiatives more B/I EE EE CD deliberatively. 2 Enhance how the World Bank and IFC’s internal systems and processes support B/I EE EE CD managing major convening initiatives over their life cycle. 3 Improve links between the World Bank’s global and country work. B EE EE CD FY21 The World Bank Group Outcome Orientation at the County Level: An Independent ORG FY23 FY23 FY24 Evaluation 1 The Bank Group should reform the country level results system to ensure that it WBG EE EE EE accurately captures the Bank Group contribution to country outcomes and usefully informs decision making on country engagements. FY22 Enhancing the Effectiveness of the World Bank’s Global Footprint ORG FY23 FY23 FY24 1 The World Bank should refine its current approach to managing its staffing global B EE LE LE footprint by clearly specifying decentralization’s expected outcomes and adopting principles to guide and adjust decentralization decision-making based on evidence. 2 The World Bank should mitigate the risks to knowledge flow brought about by B EE EE EE decentralization and put in place safeguards to avoid developing country and regional silos. 3 The World Bank should establish clear and structured paths to systematically B EE EE EE promote LRS professional and career growth within its overall approach to improving the effectiveness of its global footprint. xiv Management Action Record (MAR) FY24 1. OVERVIEW OF PERFORMANCE The MAR in the Context of Change 1.1 The FY24 MAR, Better Results through Learning and Adaptation for a Better World Bank Group: The FY24 Management Action Record, reports on results of the implementation of evaluation recommendations from the Independent Evaluation Group (IEG) and on how implementing these relates to key priorities for the WBG. The FY24 MAR—carried out in the context of the WBG’s new vision of a “world free of poverty on a livable planet”—is being implemented at a time of transformational change for both the WBG and its clients. With the Better Bank’s initiatives and ambition, the WBG aims to sharpen its focus on impact, speed, and efficiency. Management is implementing a new playbook, key elements of which include, among others , a revamped Scorecard to translate vision into action, ensure accountability for delivering results at scale across the WBG, collect more and better data, and support feedback loops and adaptive learning. Organized around “Outcome Areas,” the Scorecard is aligned with the five verticals of People, Prosperity, Planet, Infrastructure, and Digital, along with cross-cutting themes of gender, fragility, jobs, and private capital. The MAR’s thematic groupings and topics (see Figure 1.1) are primarily motivated by the Scorecard structure. The Scorecard is a living document, and the MAR is expected to incorporate valuable learnings as Management thinks about ways to fine-tune the Scorecard, learn from implementation, and adapt over time. 1.2. During the FY23 MAR discussions, CODE requested that the MAR focus on evaluations offering greater insights for the Evolution. Management and IEG jointly discussed a list for this year’s MAR reporting and deeper consideration, noting that all evaluations —and not only those featured for further discussion—underwent similar information sharing with IEG during the MAR discussions. Management’s prioritization criteria this year involved whether the evaluations were especially relevant to Better World Bank Group priorities (and associated tools, plans, and resources); connected to the Global Challenge Programs (GCP)s; emphasized certain topics of interest (such as those climate-related); and/or held the likelihood of rapid performance largely based on technical teams’ pathways to progress well in place to achieve early results (see Figure 1.2 and Figure 1.3). Figure 1.2: FY24 Featured Evaluations -1- Management Action Record (MAR) FY24 Emerging Picture from the FY24 Overall MAR Self-Assessment 1.3 The FY24 MAR shows that Management continues to make steady progress in implementing IEG recommendations effectively, amidst a challenging operating environment and changes associated with building a Better World Bank Group. Management continues to work toward rigorous standards for demonstrating progress in the MAR, as set out in the FY20 MAR Reform process with IEG. Management has investigated evidence of progress more fully with technical contributors in working-level exchanges with IEG. This has contributed to better information on which to judge progress. A more balanced distribution across the assessment categories 1 emerged (see Table 1.1). In FY24, 34 percent of the 77 active recommendations are categorized as “limited evidence (LE),” a rise from 19 percent in FY23. This LE increase is primarily (69 percent) driven by some of the new recommendations introduced into the MAR cycle, with 18 at the LE level. The remaining 31 percent is explained by eight existing recommendations, which compared to FY23 self-assessments, four remained at the LE level, three were downgraded to LE because of low progress, and one moved up from the “progress constrained” (PC) category. The “change of direction” (CD) level increased to 22 percent in FY24 from 10 percent in FY23, partly because of early achievement of progress. The “emerging evidence” (EE) category remains comparably similar in absolute numbers (32 in FY24 and 39 in FY23) but represents a lower share: 41 percent compared to 66 percent in FY23, as a result of the addition of new recommendations in FY24. The “progress constrained” category remains relatively stable (3 percent in FY24 and 5 percent in FY23). Self-assessment of LE in Year 2 or later points to the need for closer attention to implementation performance. See Table B for the self-assessment for each recommendation, and Annex II, on Methodology, for a description of the assessment framework. TABLE 1.1. Aggregate Management Assessment of Levels of Progress Achieved (# of Recommendations) Assessment Category FY22* FY23* FY24* FY25 Progress Constrained (PC) NA 3 (5%) 2 (3%) Limited Evidence (LE) 3 (6%) 11 (19%) 26 (34%) Emerging Evidence (EE) 38 (70%) 39 (66%) 32 (41%) Change of Direction (CD) 13 (34%) 6 (10%) 17 (22%) Total Recommendations (# Evaluations) 54 (18) 59 (22) 77 (28) 69 (25) Expected Recommendation Retirements -18 (-7) at the end of FY24 (Evaluations) Incoming Recommendations for FY25 (Evaluations) +10 (+4) *Numbers shown are from Management’s annual self-assessments and not IEG’s validations. 1.4 Implementation progress happens at different speeds and varies by recommendation—not all recommendations need to be reported for four fiscal years before reaching CD and neither do all recommendations reach CD at the end of four fiscal years. Table C and Annex I show in detail the 12 recommendations from seven evaluations that have reached the Management-proposed highest level of progress (CD) for some or all recommendations within the first, second, or third years of review—representing faster advancement across categories than in FY23. These include Municipal Solid Waste Management; Disaster Risk Resilience; Renewable Energy; Sustainable Development Finance Policy; Public Finance and Debt Management; Private Capital Mobilization; and WBG in Situations of Conflict. As shown in Table C, other recommendations may take three to four years to progress to CD, and some never reach this highest level. These recommendations may have faced persistent challenges, or have backtracked, due to a range of reasons that include, among others, change in organizational priorities, or elapsed time required to achieve results. Examples of these include one recommendation each for Citizen Engagement (on indicators for monitoring) and Urban Resilience (on crime and violence), both related to priorities around the topic of inclusion. Some evaluations see a mix of performance, with good progress in some areas but obstacles in other areas. Of the 32 recommendations that are in the first year (FY24) 1  The MAR assessment framework contains four categories. See Annex II for definitions of criteria and how they are applied. Briefly explained, progress constrained (PC) means that evidence on progress is unavailable or inadequate; limited evidence of progress (LE) is generally used when initial activities linked to the recommendation are delivered and some knowledge generated; emerging evidence of progress (EE) describes cases in which new capacities and systems are being developed and have started to be implemented; and change of direction of progress (CD) shows cases with meaningful changes in behavior and systems that are likely to be sustained in the future. -2- Management Action Record (MAR) FY24 of reporting, one has achieved a CD level (Disaster Risk Resilience), and the remaining 31 are assessed either as LE or EE, which is to be expected given the early stage of recommendation implementation. 1.5 Management introduced a fifth pathway in the FY24 MAR cycle to complement the FY23 MAR’s four “pathways” toward change, influenced by the Evolution. These pathway categories describe how teams typically progress toward reaching the recommendation goals (see Figure 1.3 for an exploration of the pathways) and help Management understand typical motivators of change and how they might be employed within the MAR process. This year, a new overarching pathway on the influences of the Evolution, and Senior Management’s leadership direction and momentum related to the Better Bank agenda, were central to most conversations with technical teams. Chapter 2 provides details of the progress for each evaluation, and most updates refer in some way to how Better Bank initiatives are providing clearer and more ambitious directions, better organizational cohesion, and momentum to meet the goals. While by no means exhaustive, these pathways toward change have been implicitly followed by various teams.2 These pathway conversations were aided by new “descriptors of progress” guidance notes provided by IEG and used by Management teams to understand what progress evidence would be most informative. Figure 1.3 Pathways of Change: Examples of How Recommendations Are Implemented 1.6. In FY24, Management took steps to ensure greater accountability in the delivery and assessment of progress on the implementation of IEG recommendations. In the past, technical focal points led the MAR process, with variations in managerial review. In FY24, the MAR Management coordination team asked all World Bank technical counterparts to ensure that draft reports were discussed, reviewed, and cleared by managers (noting that IFC and MIGA were already doing this systematically). This was no small task given the 28 evaluations and 77 recommendations in this year’s cycle, with an estimated 150-plus technical staff involved. In most cases, such as with the World Bank’s Fragility, Conflict, and Violence (FCV) team and Development Finance (DFI), managers directly 2 A typical “step-by-step” pathway of implementation step by step involves the following steps: preparation of new guidance (e.g., GP issuing formal guidance), staff training on new guidance, initial application of the new guidance (i.e., trialing period), and scaling-up for broader coverage (when they meet the “change of direction” criteria). Another pathway, “riding the wave” would be most relevant when an evaluation recommendation benefits from considerable institutional momentum behind an agenda, so that just “riding the wave” could deliver quick results (e.g., digital evaluation). Yet another pathway, “being opportunistic” could work when hooking a railcar to a moving train—that is, when teams leverage other initiatives that are already underway— could help with steady implementation success (e.g., DRR and the Climate Preparedness Toolkit). For recommendations dependent on “cross-unit collaboration,” the pathway may be less clear, notwithstanding progress being made (e.g., convening power evaluation). -3- Management Action Record (MAR) FY24 engaged with IEG in meetings and preparation of the submissions to IEG. In many cases, MAR submissions saw a combination of contributions, reviews, and clearances by Directors, Global Directors, and Vice Presidents. The FY25 MAR will further leverage this approach. Looking Ahead 1.7 This year’s MAR has been a truly collaborative process across the WBG and with IEG, with a clear focus on learning lessons to improve the outcomes envisaged by IEG recommendations. Management is undertaking measures to further optimize learning from the MAR process. Management continues deepening its understanding of the pathways of change, pursuing iterative information sharing among WBG technical staff and IEG staff, and keeping champions engaged. In addition to learning from the External Review of IEG (December 2022), Management has instituted the Knowledge Compact, which offers multiple entry points to better emphasize learning and adaptation in the whole evaluation cycle—from the concept phase to the end of the MAR period. 1.8 The WBG is revamping efforts to strengthen staff and client capacities in monitoring and evaluation (M&E) and data management through the new Academies. These include staff operational clinics on Scorecard data planning and reporting; client M&E capacity development and delivery programs under design (jointly with, among others, OPCS, IEG’s Global Evaluation Initiative, and the East and Southern Africa and West and Central Africa regions of the WBG); and a DEC-led talent board to nurture staff working in data science and statistics. Equipping staff and clients with improved skills and knowledge is intended to aid in planning, monitoring, managing, evaluating, and using results data for decision-making. The new Scorecard has reprioritized the results agenda across the WBG, becoming a beacon for outcome-orientation. These efforts are incipient and will continue to materialize in FY25. 1.9 Maintaining the momentum on learning and evidence gathering will require managing the growth in the number of active recommendations to monitor, as discussed in the FY23 MAR CODE meeting. Management has worked with IEG to address overlapping elements in recommendations across related evaluations to reduce redundancy in reporting. The (net) volume of recommendations rose by 31 percent in FY24 (59 in FY23, 77 in FY24) with 28 active evaluations, most (86 percent) with two or more recommendations. The FY25 MAR update is expected to report on 25 evaluations and 69 recommendations. This will be a net reduction from FY24 levels, due to two factors: (a) substantial progress made in FY24 in recommendations reaching the CD level and in early retirements; and (b) a reduction in new IEG evaluations produced for the FY25 cycle. Management and IEG continue to discuss the lessons from the last MAR cycles on how recommendations can be clearer and more actionable, and how to have clarity on the appropriate owners for evaluations with a broad focus and that cut across the organization. Management will work with IEG to make the FY25 MAR process nimbler, substantiated with a FY24 MAR after action review. Retirement of Recommendations 1.10 Management follows a pragmatic and conservative approach for making proposals for retirement of recommendations. A recommendation is proposed to be retired when an assessment of CD is reached, or the recommendation has been reported for four fiscal years, or a notable change in external or internal context makes the recommendation redundant and it is proposed for eligible for early retirement. This year, Management is proposing retirement of 18 recommendations from 10 evaluations, as follows: a) six recommendations from three evaluations that are due for automatic retirement and have reached maturity (five reached CD level and one is PC level); and b) early retirement of 12 additional recommendations from seven evaluations that have reached CD level. There is a seventh recommendation—from the Citizen Engagement evaluation—eligible for automatic retirement based on time criteria. Management will not retire this recommendation, which is at an LE level, to allow for an additional year to show progress. Management is open to adjusting this proposal based on feedback from IEG through its validation report. See Annexes I and II for more information on retirements and methodology. -4- Management Action Record (MAR) FY24 2. EVIDENCE OF PROGRESS AND SELF- A S S E S S M E N T: H I G H L I G H T S This chapter summarizes progress and Management self-assessments for each evaluation. These highlights are based on working- level meetings and information exchanges with each Management technical team and IEG counterparts. Under each evaluation title, readers can find the: fiscal year of evaluation publication; year of MAR review reporting; number of recommendations; and Management assessment levels for each, denoted as “R=X.” PEOPLE World Bank Support to Reducing Child Undernutrition FY22. Second year of reporting. Two active of two total recommendations. World Bank only. (R1=EE; R2=EE)    2.1 World Bank commitments to nutrition more than doubled Chart 2.1: Nutrition-contributing Projects over the last five years (from $866 million across 15 projects in FY19 to and Nutrition Commitments, FY19 vs. FY23 $2.077 billion across 44 projects in FY23; see Chart 2.1), and the portfolio has also evolved in response to the recommendations of the evaluation, emerging evidence and needs of the Bank’s clients. A new AI tool shows many countries with nutrition projects prioritizing institutional strengthening, at the levels of nutrition policy and financing, service delivery and stakeholder engagement and coordination. There has been a marked increase in inclusion of nutrition-specific activities in projects from multiple Global Practices (GPs), including the Social Protection and Jobs, Agriculture, and Education GPs. Moreover, more nutrition-sensitive service and program platforms are being leveraged to expand the scale-up of high-impact nutrition-specific interventions. Supported by grants from the Nutrition Multi-Donor Trust Funds (MDTF), along with the increased linkages between nutrition-specific and sensitive programs, task teams are deploying more systematic sub- national targeting to facilitate co-location and convergence of projects and activities to enhance achievements of cross-sectoral nutrition objectives. A detailed analysis of FY23 projects shows encouraging findings on activities related to social norms and behavior change, including among projects led by other GPs (for example, Agriculture, Environment, FCI, MTI, Poverty and Equity) that do not traditionally address nutrition-focused social norms and behavior change directly. The World Bank’s Early Support to Addressing COVID-19 Health and Social Response (An Early-Stage Evaluation) FY23. First year of reporting. Four active of four total recommendations. World Bank only. (R1=EE; R2=LE; R3=LE; R4=EE) 2.2 The lessons learned during the response to the COVID-19 pandemic have changed the World Bank’s strategic approach to pandemic response, and related interventions, but challenges remain. The World Bank is already working to strengthen resilience of essential health and education services. In the health sector, improved operational design better addresses the intersection of primary health care and pandemic preparedness and response, while also building in mechanisms such as digital technology and telemedicine that can allow countries to maintain access to services during a crisis (Chart 2.2 shows the distribution of some indicators of health security across income groups). In education, increased resilience is reflected in more operations that include a resilience component. Technical guidance has been developed to strengthen the gender lens in operations and protect women and girls from shocks. The WBG reforms are only accelerating action on these lessons. For example, the Evolution calls for stronger collective action at regional levels, with the Health Emergency Prevention, Preparedness and -5- Management Action Record (MAR) FY24 Chart 2.2: Average Global Health Security Response (HEPPR) Global Challenge Program enabling this Index (GHSI), by income group, 2021 collective action on a wider scale. Management continues to proactively explore new opportunities for health emergency prevention, preparedness, and response. An analysis of the active IDA and IBRD portfolio confirms that competing priorities and limited financing is making it difficult for countries to break the cycle of “panic and neglect” and incentivize investments in public goods of a regional and global nature. Analytical work regarding the importance of investing in HEPPR, knowledge of the gaps in HEPPR, and policy dialogue at all levels, combined with increased mobilization of concessional resources and increased prioritization of HEPPR across multiple sectors, will be critical for building on the lessons from the COVID-19 pandemic. PLANET The Natural Resource Degradation and Vulnerability (NRDV) Nexus: An Evaluation of the World Bank's Support for Sustainable and Inclusive Natural Resource Management (NRM), 2009-2019 FY21. Third year of reporting. Three active of three total recommendations. World Bank only. (R1=EE; R2=EE; R3=LE) 2.3 A systemic Bank-wide change in approach and direction was introduced in FY24 through the World Bank’s new mission statement to “end extreme poverty and boost shared prosperity on a livable planet .” This shift has boosted the critical role of natural capital and ecosystem services for economic growth, planetary health, and sustainable development, and has elevated the need for sustainable use and management of these resources to achieve the twin goals “on a livable planet.” Natural resource issues and the associated effects on poverty, climate resilience, and vulnerability are now embedded at the corporate level within the World Bank Group. This is further enhanced through the adoption of several indicators in the Scorecard that directly measure key aspects of NRDV in client countries and the World Bank’s contribution to address them. Country Climate and Development Reports (CCDR) have become a core diagnostic tool and have increasingly integrated natural resource and vulnerability issues within the context of climate change. The World Bank continues to use the Green, Resilient and Inclusive development (GRID) framework and the Green Growth and Green Recovery Development Policy Operations (DPOs) to support client country governments in adopting policies that address NRM governance issues, including through policy and regulatory reforms that provide incentives for better NRM. Improved governance, including participatory and community based NRM approaches, have further enhanced inclusion and access to productive resources. Cross- GP coordination and collaboration has been further enhanced through multiple channels that have improved the sharing of data and knowledge, measurement, and coordination in the design and implementation of joint operations in addressing NRDV issues, including joint analytical work and toolkit development, and joint programs that incentivize incorporation of nature-based solutions in projects. Transitioning to a Circular Economy: An Evaluation of the WBG’s Support for Municipal Solid Waste Management (2010-20) FY22. Second year of reporting. Three active of three recommendations. World Bank, IFC, and MIGA.  (R1,2,3=CD + Retire) 2.4 The WBG has made significant strides in enhancing Municipal Solid Waste Management (MSWM) in client countries worldwide, with the three institutions advancing to the CD assessment level. In FY23-24 the World Bank introduced 12 new standalone projects focusing on an integrated and incremental approach that aligns with the waste hierarchy principles (see Chart 2.3). Regarding technical assistance (TA) and analytical support, 64 percent of these efforts targeted LICs and LMICs. Several Bank-wide initiatives elevate the importance of SWM, including the launch of the Global Methane Reduction Platform for Development at COP28 in Dubai, the issuance of a $100 million Plastic Waste Reduction-Linked Bond, and increased involvement in addressing marine plastic pollution. The World Bank remains actively engaged with other development partners, demonstrating its ongoing commitment to -6- Management Action Record (MAR) FY24 working collaboratively to improve waste management practices worldwide. Targeted capacity building to LICs on SWM through week-long deep dives has taken place, aiming to enhance capacities and transfer knowledge. IFC continues to develop sustainable and scalable private sector waste management investments in line with the waste hierarchy and promotion of circular economy. In FY24, IFC has processed 16 waste and circularity investment projects through concept approval, significantly boosting the pipeline of projects across IFC markets (see Chart 2.4). Several of these projects are being supported by Circularity Plus, IFC’s investment and advisory platform targeted to waste management companies to support market creation, innovation, and capacity building. These projects cover the full value chain of waste collection, treatment, recycling, energy recovery, and residual waste disposal in sanitary landfills. Sustainable waste management remains a major challenge in both MICs and LICs. While IFC involvement is skewed toward MICs, given their greater abundance of commercially viable private-sector opportunities, IFC is also supporting market Chart 2.4: IFC Waste and development in LICs (e.g., Papua New Guinea, Nigeria, Côte d’Ivoire). As Circularity Investment Projects SWM is a challenging and evolving sector, IFC has been working with the with Concept Approval, FY23-24* World Bank, through joint studies, workshops, and market development initiatives, to increase stakeholder attention to waste management, *FY24 includes enhance the WBG’s knowledge and thought leadership, and promote both favorable regulatory environments. IFC is also utilizing its convening power Manufacturing, to bring together key industry players (e.g., the IFC organized a CEO Panel Agribusiness, and Services (MAS) at the International Solid Waste Association, the largest global waste and Infrastructure conference, and a session on private sector solutions for plastics circularity (INR) concepts at the INC-4 UN Plastic Treaty conference). Finally, to accelerate private approved, whereas FY23 sector participation in waste management, IFC is supporting public only includes INR. authorities in countries (e.g., India, Colombia) leveraging its global experience and market knowledge. Chart 2.3: World Bank Projects with SWM Components Since FY21 A total of 46 projects, of which 12 are stand-alone. Of the 46, 9 are in FCV 46 countries, and 28 are in LICS and LMICS. Of the 12 stand-along projects, 1 is in an FCV country and 6 are in LICS and LMICS. 22 All 9 28 46 12 6 Stand Alone 6 12 FCV LICS & LMICS 1 FY23 FY24 Reducing Disaster Risks from Natural Hazards: An Evaluation of the World Bank’s Support FY10 -20 FY23. First year of reporting. Four active of four total recommendations. World Bank only.   (R1=CD+ Retire; R2, 3, 4=EE) 2.5. In its first year of reporting, the World Bank advanced in supporting clients to enhance their capacity to manage natural hazards, with one recommendation reaching the CD level and the other three reaching the EE level. The Evolution discussion elevated the World Bank’s focus on climate change, the Crisis Response Toolkit is helping client countries better respond to and prepare for disasters, and the Scorecard emphasizes outcome measures (e.g., increased resilience of people to climate risks). The World Bank has scaled its work to address disaster risk reduction (DRR) gaps at the regional/country level and across sectors . On lending, portfolio analysis shows an increase in DRR activities (FY21-23) across sectors (energy, agriculture) and regions (Eastern Europe and Central Asia -7- Management Action Record (MAR) FY24 Middle East and North Africa) that the evaluation had noted as lagging (see Chart 2.5). Regarding analytics, the DRR team has been a key contributor on adaptation and risk reduction analytics for CCDRs that feed into Country Partnership Frameworks (CPFs). Several tools now inform the identification and Chart 2.5: Increase in Committed Amounts for DRR Activities measurement of the effects of DRR activities in Underserved Sectors and Regions IEG Identified on exposure and vulnerability to strengthen $2.34 the development case for DRR to clients. Integrating the needs of vulnerable and/or $2.01 marginalized groups who are $1.20 disproportionately affected by natural $0.72 $1.01 hazards into project design, implementation, $0.56 and results continues. These efforts align with $0.44 $0.88 the World Bank’s Gender Strategy 2024-2030 $0.15 $0.44 and the Bank’s 10 commitments on disability $0.05 $0.32 FY21 FY22 FY23 inclusion. By FY23, 95 percent (increasing ECA Total Comm. ($B) MENA Total Comm. ($B) from 75 percent in FY22) of DRR projects Agriculture Total Comm. ($B) Energy Total Comm. ($B) managed by the Global Practice for Urban, Disaster Risk Management, Resilience and Land (GPURL) used the gender tag. The DRR team engages upstream with teams working on DRR programs to determine entry points for disability inclusion (coordinating with SSI). On improving the FCV-Disaster Risk Management (DRM) nexus, knowledge sharing/exchanges, promoted FCV-DRM nexus lessons in World Bank-financed operations (e.g., through FCV and Bank-wide diagnostics). Toward Productive, Inclusive, and Sustainable Farms and Agribusiness Firms: An Evaluation of the World Bank Group’s Support for Development of Agri-Food Economies (2010-2020) FY23. First year of reporting. Three active of three total recommendations. World Bank, IFC, and MIGA. (R1=EE R2=LE; R3=LE) 2.6 The Agriculture and Food Global Practice (AGF) GP is increasingly balancing farm-level technology interventions with efforts to improve market access to help foster agricultural transformation and economic growth. In 2023, a majority of the AGF GP's projects supported agricultural markets, especially in low-income countries, seeing a 44 percent increase from the Chart 2.6: Increased Focus on Projects that previous year (see Chart 2.6). The AGF GP is also Support Agri-food Economies boosting private sector investment in agriculture, with a ten-fold increase in Private Capital Mobilization Projects with support Projects with support for operations since FY19. The Global Challenge Program for agricultural agricultural markets (in IDA on Food and Nutrition Security (FNS-GCP) underscores markets and IDA blend countries) the necessity of collaboration and the private sector's involvement in food and nutrition security. The AGF and 24 Health, Nutrition, and Population (HNP) GPs launched a (72%) 17 14 collaborative Repurposing Agrifood Support for Healthy 8 (52%) Diets Programmatic Advisory Services and Analytics. (44%) The FNS-GCP is engaging the private sector to invest in (27%) the food value chain, nutrition products, and climate- resilient agricultural innovations. MIGA is expanding private sector support to strengthen food systems, FY22 FY23 foster innovation, and promote climate-smart 29 AGF projects 33 AGF projects agriculture. MIGA is making a notable impact by Source: Elaborated by Planet Practice Group backing projects in low-income and conflict-affected regions, and by offering innovative financial solutions for climate-related investments. IFC is enhancing market access for farmers by providing investments and advisory services, focusing on capital constraints, value chain linkages, climate risk assessments, and gender inclusion. IFC has invested $2.45 billion in the food value chain, including input provision and fertilizer supply, and has supported projects that encourage diet diversification and access to animal protein products. IFC is updating its agribusiness sector knowledge products, and the overarching General Environmental, Health, and Safety (EHS) Guidelines. The EHS Guidelines for agribusiness (among others) -8- Management Action Record (MAR) FY24 are going to be updated starting from FY25 in various batches. A training program to support low-capacity clients in addressing gaps in environmental and social (E&S) management and meeting Performance Standards has been developed, including a new module on pesticide risk assessment and regenerative agriculture ready for rollout in FY25. IFC is monitoring the implementation of client s’ ESAPs and E&S commitments, with a focus on developing agribusiness expertise in the Environmental and Social Governance teams at the regional level. INFRASTRUCTURE Building Urban Resilience: An Evaluation of the World Bank Group's Evolving Experience (2007-2017) FY20. Fourth year of reporting. Two active of five total recommendations. World Bank only. (R2=CD; R3=PC: Retire both) 2.7 The World Bank continues to invest in resilience (see Chart 2.7) and mainstreaming and incorporating resilience characteristics throughout the project cycle, but support to urban crime and violence is limited (consistent with the partial agreement on the third Chart 2.7: Average Resilience Investments recommendation). Mainstreaming involves design standards, Leveraged (USD) per 1 USD of GFDRR Grants cost-benefit analyses, and inclusive approaches for vulnerable people; however, more could be done on interjurisdictional Source: Global Facility $292.40 coordination. World Bank support to reducing urban crime and for Disaster Reduction and Recovery (GFDRR) violence within operations remains limited, especially outside the LAC region. The FCV Strategy Mid Term Review reiterates $63.66 that violence can act as a binding constraint on development, and commits the WBG to revisiting and prioritizing its commitment to address violence as part of the FCV Strategy. FY10-FY20 FY21-FY24 Evaluation of the World Bank Group's support for electricity supply from renewable energy resources FY21. Third year of reporting. One active of three total recommendations. World Bank, IFC, and MIGA.   (R2=CD + Retire) 2.8 Leveraging their comparative advantages, WB, IFC, and MIGA have collaborated on several joint initiatives, fostering systemic change. As part of the Evolution Roadmap, the WB, IFC, and MIGA have developed the Energy Transition and Access Global Challenge Program (GCP-E), which includes renewable energy and network integration as one of three focus areas. The GCP-E approach enables a shift toward the programmatic use of WBG instruments to leverage the comparative advantages of IBRD, IDA, IFC, and MIGA solutions. Comprehensive long- term country engagements with coordinated WBG support to RE development and scale-up have been prioritized as part of the regional MPA (Multiphase Programmatic Chart 2.8: World Bank Support by Lending Source Approach) programs. CPFs have also emphasized the for RE Scale-up importance of RE deployment and the need to scale up investments. The joint Energy Sector Management IBRD IDA TF 4.7b Assistance Program (ESMAP)-IFC Offshore Wind n Development Program expanded its engagement to 11 3.0b countries during this reporting period and has been 2.7b acknowledged externally for its collaborative effort. Beyond 2.4b n n joint WBG efforts, each WBG institution individually n continued to address barriers to renewable energy scale-up through comprehensive long-term country engagement. WB upstream diagnostics have further aided RE scale-up as FY20 FY21 FY22 FY23 evidenced by the CCDRs. The WB has continued scaling up Source: WB’s Energy and Extractives Global Practice lending and trust funds resources to support RE scale-up and address RE integration challenges, with an increase in financing from $2.4 billion in FY20 to $4.7 billion in FY23 . IFC has continued to promote RE deployment and integration by providing climate finance and processing investment opportunities in renewables, transmission, -9- Management Action Record (MAR) FY24 and distribution. In the FY24 MAR reporting period, IFC committed close to $2.1 billion in finance through 18 projects. These projects include financing of stand-alone projects and increased engagements with key global clients through a holistic product offering that spans the entire spectrum, including financing on a project and corporate finance basis as well as collaborations in the Upstream and Advisory space. The energy transition and access agenda also leads to growing needs in the distribution and transmission infrastructure space, which IFC, among others, is targeting with the launch of the IFC Future Grids Alliance, which offers members networking opportunities among similar utilities, along with targeted advisory and investment offerings. MIGA continues to develop the Renewable Energy Catalyst Trust Fund and Fund for Advancing Sustainability designed to support renewable energy projects. World Bank scaled-up lending is shown in Chart 2.8. Managing Urban Spatial Growth: World Bank Support to Land Administration, Planning, and Development FY22. Second year of reporting. Three active of three total recommendations. World Bank. (R1=EE; R2=EE; R3=LE) 2.9 Solid progress was made on all urban spatial Chart 2.9: Increased Support for Managing Urban growth recommendations with the likelihood of further Spatial Growth strong growth in future years. To help city leaders make informed decisions for sustainable urban development, the WB continues to mainstream the integrated working of the same three strategic frameworks: (1) Planning, Connecting and Financing (PCF) Framework; (2) Housing Strategy/Framework; and (3) Land Governance Assessment Framework (LGAF). GPURL continues scale- up to help clients prepare for urban spatial growth through preventive, not just curative, approaches through its Global City Planning Labs (CPL) initiative and City Climate Finance Gap Fund (with cumulative grants Source: Elaborated by the Urban, Resilience, and Lang Global increasing from 45-75 in FY24; see Chart 2.9). The joint Practice. Note: *Funded by the City Climate Finance Gap implementation of the Housing Strategy/Framework by the IFC and World Bank advanced during FY24, and the Joint Affordable Housing Program is commencing in FY25 and will focus on the development of joint IFC-World Bank diagnostics and implementation plans to strengthen green affordable housing in three pilot priority countries: India, Kenya, and the Philippines. The Geo-Enabling Initiative for Monitoring and Supervision (GEMS) Portfolio Mapping constitutes the only systematic WBG approach to collect granular spatial project data. GEMS has significantly increased its work in FY24, moving beyond Fragile and Conflict-affected Situations (FCS) to cover all types of client country globally (with over 1,200 projects across various sectors in the over 100 countries supported). Finally, GPURL is modernizing project preparation and implementation support through geospatial data acquisition and image processing, with a TTL toolkit for remote supervision and preparation of projects, guidance notes on satellite imagery artificial intelligence/machine learning for image processing, drone technology for project preparation and implementation support, and AI for remote assessment of structural resilience of infrastructure. The “Knowledge Compact,” under its pillar “Systems to Transform Productivity,” is expected to provide further impetus to efforts to leverage new digital tools for project support. World Bank Group Support to Demand-Side Energy Efficiency FY23. First year of reporting. Four active of four total recommendations. World Bank, IFC, and MIGA. (R1=EE; R2=LE; R3=LE; R4=EE) 2.10 The WBG has undertaken several initiatives that are expected to contribute to the intensification and scale-up of demand-side energy efficiency. The Energy Transition and Access Global Challenge Program (GCP-E) includes energy efficiency as one of three focus areas. In line with GCP-E, the WB approved the $1.5 billion Scaling Up Energy Efficiency in ECA (E3) Multiphase Programmatic Approach (MPA) in FY24, seeking to transition to a wholesale approach for energy efficiency lending (Chart 2.10 shows increased lending for demand-side energy in recent years). These energy efficiency engagements are also seeking to shift from one-off pilots and individual projects to national-level programs, that mobilize private capital, greater learning opportunities for clients across countries, sharing of information and documents, access to greater concessional finance including carbon markets, - 10 - Management Action Record (MAR) FY24 etc. This approach remains to be operationalized but is already starting to Chart 2.10: Increased Average Yearly see increased financing and leverage with development, counterpart, and Lending for Demand-Side Energy commercial partners for energy efficiency in all three institutions . IFC’s work with clients to improve energy efficiency and their broader Efficiency Source: Elaborated decarbonization efforts, including through the IFC “Excellence in Design by Infrastructure Practice Group for Greater Efficiencies” (EDGE) program in the building sector is pioneering new approaches and demonstrating models for scale-up. Since US$1,468m 2015, EDGE has facilitated the certification of more than 85 million square US$730m meters of green building assets, saving 2 million tons of CO2 emissions per FY20-21 FY22-23 year. The WBG institutions are also collaborating and working across sectors to consider new technologies, instruments, and financial innovations, including to facilitate more affordable housing, and to decrease energy demand across industrial and digital assets. MIGA's political risk guarantees facilitated “green buildings” efforts, notably through a Sub -Saharan African real estate fund that refurbishes and certifies hospitality assets as “green” across 10 countries. Additionally, the WB has developed and issued guidance notes related to the Paris Alignment, including one on energy-efficient buildings. Robust analytical work has been done or initiated by the WB to continue to assess project models for low- and middle-income countries, co-benefits, models for scale-up, and embedded carbon in building materials. DIGITAL Mobilizing Technology for Development: An Assessment of World Bank Group Preparedness FY21. Third year of reporting. Three active of three total recommendations. World Bank and IFC.  (R1=EE, R2=EE, R3=EE) 2.11. The WBG has seen an upward trajectory and heightened strategic priority on digital matters, which will only increase into FY25. Highlights are in Box 2.1, and include, among others, the new Digital VPU and the Digital Global Challenge Program (DGCP), progress tracking mechanisms in the Scorecard, and IFC market mappings and investment strategies for tech sectors across all IFC industries and cross-cutting themes to ensure that digital transformation expertise informs IFC’s approach to investments and collaboration with the World Bank. WBG staff capacities in disruptive and transformative technologies (DTT) can collaborate to shape WBG GCP strategies and inform key stakeholders on leveraging the wider technology ecosystem. IFC has adopted a strategic approach to digitally competent workforce by upskilling staff with AI skills and organizational adoption of AI through the AI Working Group and Advocates Network. Finally support to staff on DTT procurement needs has been better resourced. Box 2.1: Progress on Mobilizing Technology - 11 - Management Action Record (MAR) FY24 PROSPERITY Two to Tango: An Evaluation of World Bank Group Support to Fostering Regional Integration FY19. Fifth year of reporting. One active of six total recommendations. World Bank only. (R5=CD + Retire) 2.12 The Regional Integration evaluation prompted a helpful exercise to codify spillover effects of regional programs. The spillover Chart 2.11: Increase in Share of RW- reporting is at three levels: IDA; Regional; and Operational (all reported Financed Projects with PDO Indicators in more detail in the FY23 MAR Report). At the Operational level: since the start of FY23, DFI cleared projects for Regional Window (RW) financing if they have at least one Project Development Objective (PDO)-level indicator tracking spillovers, with the consequence that every RW-supported project across the FY23 portfolios has at least one PDO-level indicator. This system was established during FY22, and Chart 2.11 shows the progress made since FY21. CD-level assessments were achieved in the FY23 MAR Management Report and IEG’s Validation for this final recommendation—satisfying the retirement criteria. This FY24 reporting shows the continuation of the trends in generating evidence based on robust indicators. State Your Business! An Evaluation of World Bank Group Support to Reform of State-Owned Enterprises (SOE), FY08-18 FY21. Third year of reporting. Two of two total recommendations. World Bank, IFC, and MIGA. (R1=EE; R2=EE) 2.13 There is a stronger focus on SOE-related data and analytics resulting in an expanded evidence base for policy interventions, leading to selectivity in the Bank’s approach to SOEs. Operations are now better informed by new data and analytical work. Through the integrated SOE framework (iSOEF), the Bank is adopting a more integrated approach that involves working closely across GPs and with IFC and MIGA. This approach equips teams to comprehensively address SOE reform issues like SOE fiscal risk, corporate governance, competition, and distributional issues while increasingly supporting countries on emerging issues such as sustainable SOE ownership practices and climate reporting. WBG core diagnostics (CEMs, CCDRs, CPSDs) and advisory programs systematically consider the role of SOEs in markets and opportunities to promote private sector participation and growth. Moreover, the new “Businesses of the State (BOS)” database offers, for the first time, comparable data on the state footprint in the economy across more than 90 countries. In the area of infrastructure, a new Global Flagship “The Critical Link: Empowering Utilities for the Energy Transition” drawing extensively on new data in the World Bank’s Utility Performance and Behavior Today (UPBEAT) database highlights the role utilities play in decarbonizing electricity while providing power to the nearly 700 million people who still lack it. The integrated approach is leveraging the full range of Bank instruments, combining diagnostics with technical assistance, financing, and the Bank’s convening power. This has led to the preparation of new types of SOE operations ( Program for Results, or PforRs) that aim to improve the SOE governance, competitive neutrality, SOE restructuring and performance monitoring. IFC continued its enterprise level SOE interventions regarding corporate governance improvements and integrity due diligence. In alignment with the Evolution Roadmap, the WBG has introduced a joint Guarantee Platform aimed at, among other objectives, supporting the commercial borrowing needs of SOEs. World Bank Support for Public Financial and Debt Management in IDA-Eligible Countries FY21. Third year of reporting. Two active of two total recommendations. World Bank only. (R1 & 2= CD + Retire) 2.14 There is substantial progress on monitoring the quality of countries’ Public Finance and Debt Management (PFDM) systems and use of these diagnostics to shape World Bank support. The Equitable Growth, Finance, and Institutions (EFI) GP introduced a four-pronged strategy to address the need for more cohesive monitoring of key pillars of PFDM in IDA-eligible countries, which includes: (i) global stocktaking of Public Finance tools; (ii) enhancing the frequency and timeliness of PFDM assessments; (iii) strengthening metrics for capturing - 12 - Management Action Record (MAR) FY24 PFDM results; and (iv) enhancing the focus on results. The Global Stocktaking of Public Financial Management (PFM) tools has been published and the Stocktaking of PFM Tools website provides easy access to 64 diagnostic tools and plays a key role in improving monitoring and availability of country specific PFDM data (see Chart 2.12). The World Bank continues to undertake 20-30 country-level Public Expenditure and Financial Accountability (PEFA) assessments per year, and the PEFA data is also used to determine country scores on the Country Policy and Institutional Chart 2.12: Number of (Unique) Tool Uses*, Assessments. The Bank continues to conduct Debt Fragile and Conflict-affected States Management Performance Assessments (DeMPAs) and a public Debt Dashboard with debt and debt sustainability indicators is planned to be completed by the end of FY24. The Public Finance Review (PFR) core diagnostic has been revamped, the PFR Resource Center was launched, and the approach is currently being piloted in several IDA countries. Evidence from PFDM diagnostics has been used to inform reforms and build capacity in client countries, and these diagnostics have also played a strategic role, informing the preparation of several CPFs. The Development Effectiveness of the Use of Doing Business Indicator: Fiscal Years 2010 –20 FY22. Second year of reporting. Four active of four total recommendations. World Bank and IFC. (Lessons 1, 3, 4=LE; 2=PC). After the CODE discussion on the evaluation, Management confirmed plans for a new approach to assessing progress on enabling environment (now called “B-READY”) and is reporting on how the new approach starts to reflect evaluation lessons. 2.15 Continued progress has been made in the new approach to assessing progress on business enabling environment (now called “B -READY”) after discontinuation of Doing Business. FY24 has seen two new publications: the B-Ready Manual and Guide, and the B-Ready Methodological Handbook. The first B-READY report is targeted for issuance in September 2024, then additional reports in 2025 and 2026. The FY23 B-READY Concept Note shares that it will be one of many benchmarking exercises and regularly update indicators to reflect learning, while Lessons 2 (note “PC” assessment with valid evidence of progress unavailable) and 4 are largely about WBG practices in how the WBG uses B-READY to engage with clients and the overall messages that are communicated broadly). Given that the first B-READY report will only be published in September 2024, more is expected to be reported in FY25. IDA’s Sustainable Development Finance Policy: An Early -Stage Evaluation FY22. Second year of reporting. Three active of three total recommendations. World Bank. (R1=CD+ Retire; R2=EE; R3=CD+ Retire) 2.16 Sustainable Finance Debt Policy (SDFP) supports IDA-eligible countries in their efforts to enhance debt Chart 2.13: Count and Share of Institutionalization sustainability. Performance and policy actions (PPAs) are PPAs increasingly framed as programmatic, institutionalized (as in Chart 2.13), and continue to be underpinned by sound analytics. In only the second year of reporting, two recommendations have reached the CD level, eligible for early retirement (#1 on expanding the countries covered by the Debt Sustainability Enhancement Program (DSEP), and #3 where PPAs aim for long-lasting institutional reforms). Related to PPAs being grounded in strong diagnostics and longer-term reform agendas, #2, reached the EE level, and will be tracked for another year. - 13 - Management Action Record (MAR) FY24 The World Bank’s Role in and Use of the Low-Income Country Debt Sustainability Framework (LICDFS) FY23. First year of reporting. Four active of four total recommendations. World Bank only. (R1=LE; R2=EE; R3=LE; R4=LE) Chart 2.14: Average Share of High-risk/ 2.17 The use of Bank analytical tools would further enhance the Bank’s capacity to lead in long-term growth projections in the context of in Distress Countries that Applied LIC- Low-Income Country Debt Sustainability Analysis (LIC DSAs). The support DSA to Define PPAs Between 2021- that the Bank has provided to client countries have critically contributed 2023 (in % of PPA eligible countries) to improve debt transparency in 59 percent of LIC DSF countries over the past three years; however, this progress should be better captured systematically in LIC DSAs, which should regularly report on progress and challenges to broaden debt coverage. Related to the use of LIC DSAs to inform reform priorities, approximately 19 percent of countries at high risk/in debt distress with DPO have directly used LIC DSAs as an analytical underpinning to inform debt- and fiscally-oriented prior actions in the past two years. In 90 percent of countries that are required to prepare PPAs, the LIC DSA was used to formulate PPAs (see Chart 2.14). The reform of the LIC DSA will clarify how to integrate long-term implications of climate change into the analysis through the issuance of a supplemental guidance note, which provides helpful analytical references and case studies. World Bank Support for Domestic Revenue Mobilization: An Independent Evaluation FY23. First year of reporting. Four active of four total recommendations. World Bank only. (R1=EE; R2=EE; R3=LE; R4=LE) 2.18 The World Bank has significantly revamped Public Finance Reviews (PFRs) with a plan to systematically include a substantive revenue chapter in the PFRs. In FY24, the Bank has begun rolling out PFR pilots in several countries, supporting both their design and implementation, while seven guidance notes (related to cyclicality, rigidity, efficiency, total carbon price, tax potential, tax buoyancy, and fiscal consolidation tool) have been completed, pending decision review. Tax diagnostic tools like the Tax Administration Diagnostic Assessment Tool (TADAT), Tax DIAMOND, and Climate Policy Assessment Tool (CPAT) are systematically upgraded to provide more comprehensive assessments and increased country coverage. The Bank has also advanced analytics for assessing the effectiveness and efficiency of tax expenditure, delivering databases, and conducting workshops to build capacity in this area. Country support included assistance in analysis and measurement of tax incentives, implementing Medium Term Revenue Strategy, development of a corporate income tax microsimulation model, support to re-write tax code and reform tax incentives, and supporting cost benefit analysis of tax incentives. Bank teams prioritized helping countries in the rationalization of their Chart 2.15: Inefficient Tax Expenditures Lead to Significant Tax tax expenditures and having a long- Revenue Being Forgone. term perspective, while also ramping up efforts to link Advisory Services and Analytics/TA/capacity-building support on tax incentives inform lending operations, to increase client capacity both in analytics and implementation, and thus mitigate risk of reversals. The lack of a comprehensive database that collects project-level DRM indicators currently requires a manual stock-take of DRM indicators at each stage of the review, and this is being addressed. Chart 2.15 shows that inefficient tax expenditures lead to significant tax revenue being forgone. - 14 - Management Action Record (MAR) FY24 The World Bank Group’s Early Support to Addressing the Coronavirus (COVID -19): Economic Response (April 2020- June 2021) FY23. First year of reporting. Two active of two total recommendations. World Bank, IFC, and MIGA. (R1=EE; R2=EE) 2.19 The World Bank Group has used the ongoing Evolution to broaden and deepen its crisis response Chart 2.16: Increased Use of Structured capabilities. The Evolution includes an emphasis on Finance, including to support SMEs ($, M) simplification for external clients, to enable a seamless and rapid response to shocks. Core elements of the process include: stepped up monitoring of macro-financial trends, revamped core diagnostics including major efforts on simple and interoperable data platforms, the WBG crisis response toolkit (IBRD / IDA’s toolkit was approved); and an ongoing expansion of the WBG’s guarantee offerings—a critical instrument for risk- management and crisis preparedness—with a one-stop shop at MIGA. Key elements of the WBG toolkit are as follows: rapid redeployment on undisbursed balances, access to contingent financing, catastrophe bonds and insurance. Furthermore, IFC’s comprehensive platform approach allows a scalable and replicable re sponse for different types of crises and an emphasis on reaching new clients in agri supply chains and food security, climate, and digitalization. In addition to its standalone initiatives, IFC is working to develop a suite of crisis risk management options, aligned with the World Bank's approved Crisis Preparedness and Response Toolkit. There will be a focus on supporting clients before and after a crisis to address their risk identification, risk reduction, financial protection, preparedness, response, and recovery needs. Lastly, the use of digital technologies and customization of offerings to shocks faced by developing countries (e.g., food security) is also central to the effort. It is important to note that while reflecting a specific context, the WBG’s response to the crisis due to Russia’s invasion of Ukraine has shown how a playbook based on sizable financial mobilization combined with macro and private sector support interventions can work. In addition, the World Bank (EFI), IFC, and MIGA continued to see significant uptick in the use of structured finance and quasi-equity solutions, including those directed to SMEs, over the last year (see Chart 2.16). These solutions include Risk Sharing Facilities (RSP), Unfunded Risk Participation (URP), Partial Credit Guarantees, the Global Structured Trade Finance Program (GTST), and Asset-Based Lending (ABL) facilities. There is increased focus on private capital mobilization (PCM) across GPs, and this has led to a positive increase in SME financing. The recently approved $4 billion MSME Finance Platform (IFC/R2024-0119) includes a component on digital lending, which is expected to be deployed via structured finance approaches to mitigate risk and mobilize capital from other investors. CROSS-CUTTING: Private Investment - FCV - Gender GEND GEND ER ER PRIVATE PRIVATE INVESTMEN FCV FCV INVESTMEN T T World Bank Group Approaches to Mobilize Private Capital for Development. An Independent Evaluation. FY21. Third year of reporting. Two active of three total recommendations. World Bank, IFC, and MIGA. (R2&3=CD + Retire both) 2.20 The WBG had a record performance in Private Capital Mobilization (PCM) in FY24 with $66.4 billion mobilized from private investors, a 50 percent increase from FY23 and a 190 percent increase from $23.2 billion in FY20 (see Chart 2.17). The increase was seen across all entities. IFC’s PCM achieved new records of $34 billion across loans, equity and guarantees in FY24, double the result of FY20. MIGA’s issuance stood at $8.204 billion, in FY24. FY24 IBRD and IDA PCM stood at $23.6 billion, with an IBRD mobilization ratio of 45.7 percent achieved, relative to a (retrofitted) ratio of 15.7 percent achieved in FY23. The most significant development is the launch of a WBG Guarantee Platform (WBG-GP) in July 2024, which will offer all WBG guarantee products in a coordinated manner to member countries and to private sector clients. Additionally, in FY24, IFC enhanced its measurement of Core - 15 - Management Action Record (MAR) FY24 Mobilization3 to include reporting of guarantee products. A total of $600 million was mobilized from 18 projects through guarantee products in FY24. The product is expected to grow with the launch of WBG-GP, as IFC will provide clients with full/partial credit risk guarantees for loans/bonds and unfunded risk participation. Furthermore, IBRD and IDA have started deploying a wide range of products including direct transaction support, such as advisory for asset monetization and preparing PPPs for bidding and execution as well as transaction advisory services; advisory support to specific public-sector bond issuances; financial transactions, structured and intermediated by the WB Treasury, that deploy private capital at risk in Emerging Markets and Developing Economies (EMDEs); and matching grant schemes for smallholders, startups, and SMEs. Additionally, PCM generated through deployment of risk sharing (PCGs and non-GU credit enhancement through Bank lending) constituted 33 percent of total World Bank PCM (FY18-24Q3). Also, in another analysis by the World Bank which looks at FIF projects with PCM, the leverage through risk sharing is the highest of any financing product used by the World Bank, at 4.3 times. IFC is developing a new originate-to-distribute mobilization model through the Warehouse-Enabled Securitization Program (WESP), while the Managed Co-Lending Portfolio Program (MCPP) raised $6 billion since FY23, including $3.5 billion for MCPP FIG III in FY24. IFC is also considering themes that might characterize its next global debt/credit fund focused on sustainability-related investment strategies. Additionally, IFC is increasingly using synthetic significant risk transfers (SRTs) as a tool to enable banks to reduce regulatory risk weights applied to loan portfolios and redeploy the resultant freed-up capital to increase their lending activities in EMDEs. IFC is offering these types of Chart 2.17: PCM by Institutions within WBG, US$ Bn instruments globally in emerging markets. MIGA is developing innovations to expand its relevance. It has IFC IBRD+IDA MIGA 66.4 incorporated new approaches such as multilateral 8.8 development bank (MDB) origination and MIGA- 44.3 supported co-financing. New applications include 23.6 expanding the non-honoring business for energy 33.8 5.7 7.6 transition and promoting gender inclusion through non- 23.2 23.6 4.5 5.3 honoring products. MIGA is also exploring new markets, 4.2 4.7 1.8 2.7 31 34 such as combining parametric risk with the MIGA non- 23.9 16.3 17.1 honoring product and expanding trade finance through FY20 FY21 FY22 FY23 FY24 MDB partners, and further utilizing its Trust Funds. Source: IFC Corporate Portfolio Management Department World Bank Engagement in Situations of Conflict: An Evaluation of FY10-20 Experience FY22. Second year of reporting. Four active of four total recommendations. World Bank only. (R1=CD + Retire; R2, 3, 4=EE) 2.21 Progress continues to be made on Chart 2.18: Global Footprint Staffing Trend: management’s commitments to operationalize the four recommendations of this IEG evaluation. Not only are WB FCS-based Staff (Excl. Ethiopia & Nigeria) Risk and Resilience Assessments (RRA) conducted for all Source: Human Resources 1028 983 1028 973 IDA/FCS countries, but the findings from these 836 867 879 assessments are being included in country engagement documents, and there is discussion on how this diagnostic 940 907 912 888 757 791 805 can be extended beyond those countries classified as FCS. 78 75 73 87 75 115 84 The use of fragility-sensitive “lenses” are ways in which teams may identify contextualized risk at the project level. 1 1 1 1 1 1 1 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Additionally, tools such as the Compound Risk Monitor Bank IFC MIGA Total (CRM) and Crisis Preparedness Gap Analysis (CPGA) are used to provide insight into existing areas of fragility and may serve to anticipate and better prepare for issues that may exacerbate fragilities. There is a strong institutional desire to develop more refined tools that may serve as an 3 IFC Core Mobilization measures IFC’s efforts to actively mobilize both private and public partners alongside its own-account commitments or via advisory services. It is a more focused measure than PCM as it requires a clear client mandate and specific compensation for mobilization-related services. - 16 - Management Action Record (MAR) FY24 “early warning” to the probability and likely effects of drivers of fragility at the county level. A series of guidance and good practice notes have been developed to help project teams to better understand the nuances and unique challenges presented in FCV settings. Flexibility and adaptiveness are being built into projects and outcome expectations appropriately defined for contexts that are often fluid and unpredictable. Finally, a high-level working group has made some strides in addressing the challenges faced by staff in FCV settings and the challenges the WBG faces in ensuring that projects in FCV are staffed with experienced and well-qualified teams (see trends in Chart 2.18). This work is ongoing and is part driven by the findings of the FCV MTR as well as the Evolution and ongoing IDA21 negotiations. The International Finance Corporation’s and Multilateral Investment Guarantee Agency’s Support for Private Investment in Fragile and Conflict Affected Situations, Fiscal Years 2010 –21 FY22. Second year of reporting. Two active of two total recommendations. IFC and MIGA. (R1=LE; R2=EE) 2.22 IFC aims to grow its business in Fragile and Conflict-Affected Situations (FCS) by enhancing upstream, advisory, and de-risking tools. IFC has increased its risk appetite, enabling high-impact, less profitable projects through a portfolio approach. In FY24, IFC invested $7 billion in FCS countries (see Chart Chart 2.19: Increased IFC and MIGA Involvement in FCS 2.19), which has in part been supported by MIGA Gross Portfolio and IFC Total Finance since FY19, US$ Billion blended finance via the IDA Private Sector FCS Countries (MIGA) FCS Countries (IFC) Window (PSW). As of June 2024, an estimated 7.0 $2 billion of IDA PSW funds (approximately 40 Source: IFC and MIGA 4.9 percent of total PSW funds since PSW inception) 4.0 4.4 4.2 3.3 3.9 has been used in FCS countries, supporting over 2.5 2.7 2.9 2.0 1.5 120 IFC and MIGA investments in 26 FCS countries, like South Sudan, and Yemen. In February 2024, IFC introduced a new economic FY19 FY20 FY21 FY22 FY23 FY24 capital framework for trade finance, featuring a risk-sensitive capital allocation based on risk differentiation by trade program, credit, and facility rating. This new framework has the potential to lower economic capital charges to IFC’s trade clients and improve risk -adjusted return on capital (RAROC) including in FCS countries. Trade finance plays a key role in FCS, particularly in the aftermath of the COVID-19 pandemic, when IFC scaled up its trade and working capital offerings to meet the immediate needs for liquidity. To address non-financial risks, IFC conducts contextual risk screenings and delivers environmental, social, and governance (ESG) advisory programs. Enhanced Integrity Due Diligence (IDD) procedures and training programs support clients in FCS markets. The FCS Africa team advances real-time learning and conflict sensitivity training, sharing insights through the Africa Resilience Investment Accelerator (ARIA). To help create a pipeline of bankable projects in FCS, IFC expanded its use of Upstream instruments, increasing the upstream-enabled pipeline to $3.7 billion in FCS by June-end 2024. Collaboration and Co-developments (CnCs) in FCS countries rose, with 36 CnCs across 18 countries. In Africa, the Local Champions Initiative (LCI) under the Africa Fragility Initiative fosters stability, resilience, and job creation, identifying businesses for investment readiness support. The Joint IFC- UNHCR Initiative supports private sector solutions in forced displacement contexts globally. These initiatives continuously adapt to the risks and costs of working in FCS countries. At the global level, the FCS team promotes knowledge sharing through FCS Network calls and quarterly updates to support cross-regional knowledge sharing. MIGA's exposure in FCS countries has expanded significantly, with a nearly 50 percent increase over the past five years. In FY24, MIGA issued $945 million in guarantees in FCS countries. Regarding financial risks, MIGA’s Risk Capital metric is a comprehensive capital adequacy metric defined as the total EC plus buffer capital, expressed as a percentage of the available operating capital. The buffer capital is computed using a bespoke stress testing tool, with stress scenarios representing project-level and country-level risk as well as systemic macroeconomic and event- driven scenarios. Regarding non-financial risks, MIGA’s Integrity Risk Management Directive outlines the purpose, application, definitions, scope, principles, procedures, and roles and responsibilities for evaluating integrity risk associated with engagements involving outside parties in MIGA operations. MIGA’s E&S specialists use contextual risk, biodiversity, and gender-based violence (GBV) risk tools to systematically screen projects for these risks. The expansion of MIGA's FCS portfolio demonstrates a consistent effort to improve its operations in these challenging environments, often achieved through the strategic use of Trust Funds and the IDA PSW. MIGA regularly reports to - 17 - Management Action Record (MAR) FY24 donors on the usage, allocation, and development impact of the projects it supports, and on claims and risks associated with them. MIGA’s management leverages WBG knowledge, the country’s track record, market analyses, and MIGA instruments to continuously adapt its business models, client engagements, and instruments to the needs and circumstances of FCS. International Finance Corporation Additionality in Middle-Income Countries: An Independent Evaluation FY23. First year of reporting. Three active of three total recommendations. IFC only. (R1=LE; R2=LE; R3=LE) 2.23 IFC has put in place a new system for monitoring progress in implementing and realizing additionality, which is integrated into the AIMM Navigator launched in October 2023. The AIMM (Anticipated Impact Measurement and Monitoring) Navigator will consolidate data collection for project and market outcomes, and additionality, into one platform, which will allow both tracking and reporting on project-level additionality. Key monitoring functions are now active, supported by training and dissemination of guidance notes. IFC has launched a study on monitoring of additionality, which will enable sharing of data on implementation of non-financial additionality in Upper Middle-Income Countries (UMICs) in FY25 and identification of gaps. IFC’s role in UMICs extends beyond financial additionality to focus on knowledge sharing and capacity building. For example, in Brazil, a Sustainability Linked Loan to Votorantim (the country’s top cement player) helped fund a low-emission producer, and was accompanied by climate-related advisory to support the company’s decarbonization strategy. In the context of the One WBG Approach to bring the three institutions closer, recent CPFs in UMICs (Colombia and Panama) demonstrate that IFC is using additionality considerations to inform country and sector-level engagements. In both CPFs, IFC’s program strongly relies on its non-financial additionality, which is emphasized through capacity building, innovation, knowledge sharing, and investments, often complemented with advisory programs. Addressing Gender Inequalities in Countries Affected by Fragility, Conflict, and Violence: An Evaluation of the World Bank Group’s Support FY23. First year of reporting. Four active of four total recommendations. World Bank and IFC. (R1=LE; R2=LE; R3=LE; R4=LE). 2.24 The recently published June 2024 FCV Approach Paper on “Advancing Gender Engagement and Addressing Gender Inequalities in FCV” identifies relevant gender aspects of FCV situations to inform analytic, operational, and technical assistance activities/operations by World Bank Group teams. FCV and gender dynamics are intrinsically linked and directly affect each other and the purpose of gender programs in FCV settings is not only to close gender gaps but also to contribute to how WBG operations mitigate the drivers of FCV. The Approach Paper includes an Action Plan outlining steps to elevate gender issues and responses beyond individual projects to more strategic country engagements and serves as a guide to help task teams enhance their knowledge and inform gender-responsive policy and operational responses. It complements the thematic note of the Gender Strategy “Increasing Gender Equality in FCV Settings.” Together, the two initiatives support the implementation of the WBG’s FCV and Gender Strategies. IFC is integrated in these two initiatives and, in line with the new World Bank Group Gender Strategy, has an ambitious approach to accelerate gender equality and inclusion through the private sector including in FCV countries. CORPORATE Engaging Citizens for Better Development Results FY19. Fifth year of reporting. One active of five total recommendations. World Bank. (R3=LE) 2.25 The Citizen Engagement and Social Accountability (CESA) Global Solutions Group is designing an indicator to incentivize CESA implementation and results at both the country/systems and portfolio/project level. Building on the findings of an institution-wide CESA Strategic Review conducted in FY24, Management is exploring a composite indicator to measure how citizens are engaged and to what extent their voices are reflected in development decision-making. This indicator is to be included in the new Operational Dashboard linked to the Scorecard. - 18 - Management Action Record (MAR) FY24 The World's Bank: An Evaluation of the World Bank Group's Global Convening FY20. Fourth year of reporting. Three active of three total recommendations. World Bank and IFC. (R1, 2, 3=CD + Retire) 2.26 Management assesses that, in this fourth Chart 2.20: Progress in Reduction of Number of Trust Funds year of reporting with continued improvements, all three recommendations are at CD level and proposed for retirement. FY24 has seen substantial recommitment by the WBG to its convening role. This is discussed in resources associated with the Evolution and Better Bank effort: From Vision to Impact: Implementing the World Bank Group Evolution from the Development Committee Meeting of the Board of Governors; the Knowledge Compact for Action; and various internal guidance documents and messages from senior management on topics such as the Global Challenge Programs (GCPs). The WBG Partnership Charter was adopted, and the Partnership Council was established. The Collaborative Co-financing Platform serves as a convening mechanism for MDBs to identify co- financing opportunities and facilitate dialogue. Selectivity and consolidation of trust funds continues (see Chart 2.20). IFC also continued to enhance the impact of its convening activities to deliver business results and private sector solutions. The Asia-Pacific Climate Business Forum gathered 375 top global leaders in business and finance, including 150 CEOs, to address challenges and opportunities in climate matters across Asia. At this year’s Africa CEO Forum, co-hosted by the IFC in Rwanda, IFC generated 60 business leads and signed nine investment and advisory deals, including support for Rwanda’s Life Sciences Park, a landmar k biofuel project in Kenya, and digital development in Senegal. Additionally, IFC has expanded its efforts to integrate academia into its convening platforms. Internally, IFC has improved coordination among VPUs to align convening efforts that are cross-cutting or comprise a major thematic priority. One result of this effort is a new gender equality and inclusion initiative proposal, Advancing Gender Equality, Resilience, Opportunity, and Inclusion Worldwide (GROW), which IFC management approved in FY24. Furthermore, enhancements in IFC’s publication processes have allowed advance visibility into publications, enabling better coordination and a more strategic link between IFC publications and convening efforts. The World Bank Group Outcome Orientation at the County Level: An Independent Evaluation FY21. Third year of reporting. One active of one total recommendations. World Bank, IFC, and MIGA. (R1=EE) 2.27 Since 2021, the WBG's Country Partnership Frameworks (CPFs) shifted from using “Focus Areas” to “High- Level Outcomes” (HLOs) to enhance outcome orientation. Unlike broad "Focus Areas" such as "growth and competitiveness," HLOs articulate specific, long-term development outcomes like “Access to jobs” or “Improved resilience.” Capped at a maximum of three per CPF, each HLO is supported by targeted objectives tailored to the CPF's duration, making them more specific and achievable. For instance, Jordan's FY24-29 CPF the HLO “More and Better Private Sector Jobs,” with clear objectives to improve competitiveness, support MSME growth, and reduce barriers to female labor-force participation. A total of 42 CPFs that include HLOs have been delivered as of June 30, 2024. The number of CPFs that include HLOs has increased over time; compared with FY22, when 40 percent of CPFs (four out of 10) included HLOs, now 100% of FY24 CPFs included HLOs (see Chart 2.21). Several resources support this rapid uptake, including a regularly updated HLO database on the Country Chart 2.21: Increased Adoption Engagement website, and CPF academies and Operations Clinics dedicated to of High-Level Outcomes (HLOs) enhancing outcome orientation in country results frameworks. Changes occurred to reinforce the role of learning and evaluation, with the Completion in Country Engagements and Learning Review’s (CLR) central role to inform new CPF concept discussions. Once the first CLRs become available for CPFs prepared under the new Directive/Guidance, it will be important to assess the new approach in supporting enhanced outcome orientation in country programs and the enhanced focus on learning and adjusting engagements for long-term development objectives. The ongoing Evolution will further align the country engagement model with the WBG's new vision and mission, emphasizing - 19 - Management Action Record (MAR) FY24 selectivity for impact at scale and One WBG programming. Toward this end, revamped core diagnostics such as the new Country Growth and Jobs Reports and the Country Private Sector Development (CPSD) Report 2.0, will provide sector-specific analyses to catalyze private investment and foster inclusive growth at the country level. As CPSDs have become a core diagnostic, efforts are underway to ensure Bank and IFC joint preparation is sufficiently in advance of a new CPF or PLR, to influence the program. Furthermore, the adoption of the Scorecard and its application in country engagement are key to achieving the aspirations of the Evolution. Adjustment to CPF results frameworks will facilitate inclusion of client context and results indicators from the Scorecard, articulating WBG contributions in select outcome areas. The joint nature of the Scorecard for the entire WBG and a stronger emphasis on upstream collaboration across IBRD/IDA, IFC, and MIGA in programming will enhance outcome orientation. Adjustments will be finalized after ongoing senior management level working group discussions, and a new policy framework and guidance expected in FY25. Enhancing the Effectiveness of the World Bank’s Global Footprint FY22. Second year of reporting. Three active of three total recommendations. World Bank only. (R1=LE; R2&3=EE) 2.28 The World Bank remains committed to enhancing its global footprint by increasing staff in country offices, particularly in operational and decision-making roles, following the principles in the Board paper “Enabling the WBG Global Footprint: HR Policies and Cost Implications” (2020). With regular rotations based on the World Bank’s Career Mobility and Development Framework, staff in non-US locations increased by nearly 4 percent since FY20 Q4. By the end of FY24 Q2, 47.9 percent of staff were in non-US locations, including 57.4 percent in operations and 32.9 percent in corporate units. Moreover, 98 percent of country directors/managers and 52 percent of practice managers were based in the regions as of end FY24 (see Chart 2.22). Corporate efforts to enhance knowledge flows and reduce silos have been revamped through the Knowledge Compact for Action. Building on 20 years of efforts to build a knowledge-driven institution, the Compact outlines a comprehensive approach to knowledge generation, curation, and sharing for development impact. Local partnerships, regional hubs, and the WBG Academy will connect global knowledge. Driven by learning in operations, projects will be scaled up and replicated for impact. New systems and processes for learning and knowledge management will promote knowledge flows among governments, civil society, and the private sector, and within the World Bank, to nurture innovative ideas. Implementation of the Career Development and Mobility Framework also continues to foster knowledge flows. The Chart 2.22: Evolution of World Bank Global Footprint Since FY20 establishment of a Country Office Working (Excluding IFC and MIGA. Open and Term staff only.) Group led by the Managing Directors has reinforced the World Bank’s commitment to the compensation and careers of Locally Recruited Staff (LRS). The working group’s inputs strengthen the renewed Career Development Plan, FCV Leadership and Effectiveness Programs, Language Program partnerships, mentoring programs, and Career Seminars. Management will continue to implement career-focused initiatives, supported by the GPs, to foster professional development. - 20 - Management Action Record (MAR) FY24 ANNEX I. PROPOSALS FOR RECOMMENDATION RETIREMENT Early CD level= Eval Recommendation  Level Comments  Municipal 1. To achieve more sustainable and scalable outcomes in municipal waste management, Bank CD All achieved CD by Solid Waste Group technical and financial support to clients should give clear priority to the adoption 2nd year of review. Management and implementation of waste hierarchy practices, in line with client needs and capabilities Retire. for MSWM. 2. To support the LICs where municipal solid waste is growing most rapidly, the Bank Group CD should identify constraints on demand and investments and leverage external partnerships to implement context-specific MSWM solutions. 3. To bring prominence to and spur action on the global municipal solid waste agenda, the CD Bank Group should take up a clear leadership position, collaborating and convening with developmental partners Disaster Risk 1. Incorporate DRR activities in regions and sectors and for hazards that exhibit significant CD Achieved CD in 1st Reduction coverage gaps. year. Retire. Renewable 2. WBG to support RE scale-up through comprehensive, long-term country engagements, with CD Achieved CD in Energy coordinated WBG solutions, based on the comparative advantages of each institution, to 3rd year. Retire. address barriers, aided by robust upstream diagnostics. Urban 2. The design and implementation of World Bank projects that build urban resilience should CD Achieved CD and Resilience systematically incorporate resilience characteristics and articulate their application end of 4-year throughout the project cycle. These should include the following: (i) design standards in cycle. Retire. line with resilience risks, (ii) cost-benefit analysis in line with resilience risks, (iii) city and interjurisdictional coordination, and (iv) inclusive approaches for vulnerable people. 3. In urban areas where the client has identified crime and violence as a resilience risk, the PC Partially agreed. World Bank’s support should be based on a localized typology of crime and violence that is Limited progress informed by relevant analytic work. This approach should be supported by an assessment in year 4. End of of the mechanisms most effective at reducing crime and violence within operations. cycle. Retire. Regional 5. Strengthen the design of IDA Regional Window supported projects to improve the CD Reached CD in Integration assessment of spillover effects and to generate evidence based on robust indicators. FY23. End of cycle. Retire. Public 1. World Bank should regularly monitor the quality of the key pillars of PFDM for each IDA- CD All achieved CD in Financial and eligible country, possibly through a centralized country-specific PFDM assessment. 3rd year. Retire. Debt 2. Actively use the previously described assessment to prioritize and sequence World Bank CD Management support for PFDM capacity building and reform in IDA-eligible countries. Sustainable 1. Consideration should be given to expanding the countries covered by the DSEP beyond CD Both achieved CD Development those at moderate or high levels of debt distress or in debt distress. IEG recommends in 2nd year. Retire. Finance Policy applying an additional filter. 3. To enhance the contribution of IFC support for agrifood system development, IFC should CD pilot and adopt more effective ways to support clients to better meet E&S Performance Standards, especially in LICs Private Capital 2. Expand PCM platforms, guarantees, and disaster risk management products commensurate CD Achieved CD in 3rd Mobilization with project pipeline development. year. Retire. 3. Develop new products and improve product alignment with the needs of new investor CD groups and partners. WBG Eng. in 1. To enhance the conflict sensitivity of World Bank engagement, ensure that politically CD Achieved CD in 3rd Situations of sensitive, confidential analysis is generated, retained, and managed so that it can be used year. Retire. Conflict by select future staff working on that country Convening 1. Scope engagements and contributions to major global convening initiatives more CD All achieved CD in Power deliberatively (for WB and IFC). 4th year. Retire. 2. Enhance how the World Bank and IFC’s internal systems and processes support managing CD major convening initiatives over their life cycle (for WB and IFC). 3. Improve links between the World Bank’s global and country work. CD Number of Retirements 18 (Early=12) I Management Action Record (MAR) FY24 ANNEX II. METHODOLOGY As part of the process of continuing improvements for the FY24 MAR, Management and IEG worked collaboratively on refining the FY24 assessment framework and criteria. The assessment framework continues to use the three primary categories as in FY22 and FY23—limited evidence of progress (LE), emerging evidence of progress (EE), and change of direction of progress (CD) —but the associated definitions for these criteria and how to apply them have been sharpened (see Table II.I). An important and CODE- requested addition was made to the assessment framework involving an early warning system to identify and flag recommendations that are not on track to deliver results and to review the assessment framework for ensuring greater candor in the self- assessment. The jointly chosen approach involves the introduction of a new category, in FY23, to the assessment framework called “progress constrained (PC)” and it is intended to be used judiciously. Table II.I: MAR Assessment Framework FY24 Progress Levels Description No progress. Progress Constrained (PC) Valid evidence on progress unavailable or inadequate. Reporting in year 3 or 4 continuing to show insufficient evidence of progress. Activities delivered and knowledge generated linked to the recommendation. Limited evidence (LE) Skills developed linked to recommendation. Activities conducted Limited new evidence of progress since previous MAR. Emerging evidence (EE) Evidence of developed capacities or application/utilization of outputs – such as Demonstrating application processes, IT systems, and guidance implemented, supported by limited examples. of outputs  Anecdotal evidence of changes in behavior. Meaningful change in behavior in the intended outcome of the recommendation that is Change of direction (CD) likely to be sustained. Demonstrating systematic Implemented systems changes e.g., incentives, financing mechanisms, processing, new behavior changes standards being applied across relevant portfolio. Box II.I: Criteria for the Retirement of Recommendations for FY24 Note, if Management wishes, it may extend a recommendation beyond the time-bound, four-year review period. CHANGE OF TIMING CHANGE IN EXTERNAL CHANGE IN INTERNAL DIRECTION CONTEXT CONTEXT Change of direction The reporting period for The outcome of the Management can make no rating achieved. recommendations is up to recommendation is no longer further progress or no longer five years. Reporting usually relevant, for example, agree with the outcome of a takes place over four years, through force majeure or a recommendation; IEG has starting one fiscal year after change in global priorities. conducted a fresh evaluation a report was discussed at that will supersede earlier CODE. Reporting can start recommendations. early if decided by WBG Management. II