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

Advisor
Concessional Finance and Global Partnerships
World Bank
Session 5
May 22, 2013
The World Bank Group
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Why the WBG Partners with Others
(1) benefit from/leverage the experiences of others
(2) coordination and/or pooling of resources for a stronger response
 Dialogue, Advocacy, Knowledge Sharing
 Operational Coordination
 Delivery of Global Public Goods
 Collective Action (e.g. crisis response, food security)
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Types of Partnerships and Partners




 Governments (donors and client countries)
 Other international organizations
 Newer actors such as CSOs, foundations, and the private sector
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Partnership Programs Structure
Illustrative Partnership Program Structure
Decision-
Making or
Advisory
Program
Management and
Administration of Funds
Partnership Body
Partnership Program
Management Unit/Secretariat
Funding
Mechanism
Implementation of Development
Activities
Country Level
Activities
Global/Regional
Level Activities
Key Characteristics of
Partnership Programs:
• Partnership Bodies facilitate shared decision-making on:
• strategic priorities
• program objectives
• allocation criteria
• results frameworks
• Multi-Country Scope to address:
• global public goods
• other global/regional issues
• collective action
• perceived gaps in aid
• Dedicated financing
• IBRD/IDA Trust Funds
• FIFs
• Bank grants

Partnership Programs Structure : Options
Large, broadly multilateral programs supported by FIFs
 Most appropriate in responding to major global priorities (GEF, CIFs, GAFSP, etc.)
 Bank—by acting as Trustee and Secretariat—can play a convening function.
 Engage multiple agencies in implementation.
Trust Funded programs implemented in the World Bank Group
 Donors may be highly engaged (CGAP, EITI-TAF) or lightly engaged (e.g., donor council that meets once a year, focused mainly on strategy).
 Potential cost of additional engagement needs to be justified by a robust partnering objective.
Innovative public-private partnerships
 Mastercard Foundation/IFC Financial Services for Africa.
 Innovative Finance mechanisms, such as the Advanced Market Commitments
(AMC).
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WBG Strategic Framework
WBG
Goals
Building
Blocks
End Extreme Poverty the percentage of people living with less than US$1.25 / day to fall to 3 percent by 2030
Promote Shared Prosperity faster income growth of bottom 40% population in every country
Achieving the goals must be sustainable in the long term
– environmentally, socially and fiscally
Serve Poor and Vulnerable People
Everywhere focus on poor people in all countries
Work as One World Bank Group leveraging institutional knowledge and financing
Recognize the Diversity of Clients country, private sector, global
Exercise Dynamic Selectivity link to goals, comparative advantage, impact
Focus on Development Solutions based on goals, client needs, comparative advantage, evidence
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Lifecycle Challenges
 Past efforts to strengthen selectivity have not translated to clear process to consider at the institutional level
 Potential for duplication among PPs or substitution with other instruments
 Striking the right balance among potential tradeoffs
 Country v. Global approach (i.e. bottom-up “demand” v. top-down “supply”)
 Resource tradeoffs: new opportunities v. core lending functions
 Larger more inclusive decision-making v. leaner more efficient structure
 Accountability: to traditional WBG structure (Senior Management and the
Board) v. partnership body
 Customized approaches
 need to capture lessons learned
 Develop feedback loops
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Selectivity for Partnership Programs
 Goals
 Ensure the Bank builds on its own strengths when participating in Partnership Programs
 Maintain flexibility to respond to emerging needs
 Balance institutional priorities against international demands
 PP that is relevant to country-level development impact
 Effectiveness and efficiency of governance structures
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Selectivity for Partnership Programs
 Strategic Selectivity Principles
 Need for collective action or close coordination involving the Bank
 Participation consistent with strategic priorities, comparative advantage
 Avoid aid fragmentation, proliferation of financing mechanisms
 Participation should ultimately benefit client countries
 Partners should share a commitment to common objectives
 Design Principles
 Overarching: level of accountability must be aligned with level of control
 Roles and responsibilities are clearly articulated and agreed among partners
 Participation on PP bodies should be properly framed (Terms of Reference)
 Funding mechanism should be well suited to the PP needs
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IFC Example of a Broad Based Partnership Approach
The G20 Global Financial Inclusion Agenda
Framework
Element
Approach
Funds mobilization Donors, DFI/IFIs for investment, advisory work
Thought leadership SME Finance Forum as a platform
Awareness among global leaders
G20 SME Finance Challenge and the Global Partnership for Financial Inclusion
Convening Power Synergies with DFIs, public/private sector for broader impact
Advantages
Leverage public funds alongside private
Share knowledge on priority issues
Informs and drives context & change
Wider mobilization; increased efficiency
Delivery Mechanism: Global SME Finance Initiative
• Results & Impact: 200,000 SMEs, 50,000 Women SMEs, $8 billion SME loans, 1 million jobs.
• Leverage: $64mn for concessional tranche brings over $500mn IFI funding.
$56mn for advisory brings greater client & other partner funding.
• Scalability: Contributions from DFID and EIB; alongside private sector clients: banks and MFIs.
• Efficiency: Economies of scale for project implementation, technical expertise.
• Effectiveness: Combination of Investment and Advisory Services for holistic solution.
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 What makes partnering with the WBG an attractive proposition?
 How can we work together to create Partnership Programs that are strategically aligned with Bank priorities but mutually beneficial for all partners?
 Under what circumstances should the WBG and its partners create new programs rather than make use of existing mechanisms?
 How can we more effectively include non-traditional partners such as CSOs, foundations and the private sector?
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Example of Partnership Centered on Learning – The
MasterCard Foundation
Learning
 Publish Evaluation Results
 Annual Conference and Industry Events
 Technical Research
 Knowledge Guides and Practice Notes
Program Level Evaluation
Project
Evaluations
Cross-Cutting
Thematic
Evaluations
Benchmarking
Technical Research to Inform Approach
Key Learning Questions
Critical success factors for scaling financial access for the poor? Reasons for failure?
What kinds of interventions create most access?
What can we learn about the impact on clients?
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