The World Bank Group's Response to the Global Economic Crisis

The World Bank

Description

The World Bank Group has responded to the global economic crisis with a strong countercyclical expansion of financing. Its disbursements of $80 billion in the past two fiscal years were the largest among the Multilateral Development Banks. There was notable variation across the WBG, with vastly increased IBRD lending, moderately higher IDA financing, and overall responses from IFC and MIGA that were not counter-cyclical. The differences reflected the interplay of financial capacities, business models, and available instruments. While the level of financial flows is one aspect of crisis response, the crucial aspect is the results achieved with such financing and the related knowledge work of the WBG.
The question going forward concerns the effectiveness and sustainability of the crisis response. Effective and efficient use of funds to sustain growth and ensure macroeconomic stability is more important than ever in view of emerging fiscal deficits and financial stress in client countries. It is vital that the WBG support help clients keep focused on structural reforms for inclusive and environmentally sustainable growth. The WBG needs mechanisms to ensure early warning and preparedness in the face of an increasingly uncertain global environment. Skills and institutional capabilities in key thematic areas, such as the financial sector, need to be maintained. Attention is also needed to ensure that knowledge activities are not crowded out in the face of tight budgets and resource demands resulting from increased lending.

Sujets

• Global economic crisis
• Financial crisis
• World Bank Group
• World Bank

Informations

• Publié par: world-bank-publications
• Publié le: 15 mars 2011
• Nombre de lectures: 105
• EAN13: 9780821386651
• Langue: English
• Poids de l'ouvrage: 4 Mo

Extrait

PHASE 1
The World Bank Group’s Response
to the Global Economic CrisisThe World Bank Group
WORKING FOR A WORLD FREE
OF POVERTY
he World Bank Group consists of fi ve institutions—Tthe International Bank for Reconstruction and De-
velopment (IBRD), the International Finance Corporation
(IFC), the International Development Association (IDA),
the Multilateral Investment Guarantee Agency (MIGA),
and the International Centre for the Settlement of Invest-
ment Disputes (ICSID). Its mission is to fi ght poverty for
lasting results and to help people help themselves and
their environment by providing resources, sharing knowl-
edge, building capacity, and forging partnerships in the
public and private sectors.
The Independent Evaluation Group
IMPROVING DEVELOPMENT RESULTS
THROUGH EXCELLENCE IN EVALUATION
he Independent Evaluation Group (IEG) is an indepen-Tdent, three-part unit within the World Bank Group.
IEG-World Bank is charged with evaluating the activities
of the IBRD (The World Bank) and IDA, IEG-IFC focuses on
assessment of IFC’s work toward private sector develop-
ment, and IEG-MIGA evaluates the contributions of MIGA
guarantee projects and services. IEG reports directly to the
Bank’s Board of Directors through the Director-General,
Evaluation.
The goals of evaluation are to learn from experience, to
provide an objective basis for assessing the results of the
Bank Group’s work, and to provide accountability in the
achievement of its objectives. It also improves Bank Group
work by identifying and disseminating the lessons learned
from experience and by framing recommendations drawn
from evaluation fi ndings.The World Bank Group’s
Response to the
Global Economic Crisis
—PHASE 1—
2011
The World Bank
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Cover photo: Child eating porridge from food bank, Lukula, Tanzania. Photo courtest of Gideon Mendel/Corbis.

ISBN: 978-0-8213-8665-1
eISBN: 978-0-8213-8666-8
DOI: 10.1596/978-0-8213-8665-1
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ii | Gender and DevelopmentTable of Contents
Abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .vi
Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .viii
Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .ix
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . x
Management Response . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xxi
Chairperson’s Comments: Committee on
Development Eff ectiveness (CODE) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxix
1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Evaluation Issues and Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2. The Global Crisis and Its Impact on Developing Countries . . . . . . . . . . . . . . . . 8
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Globalization of the U.S. Financial Crisis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Impact of the Crisis on Developing Countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Social Impact of the Crisis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Fiscal and Debt Dynamics: Before and After the Crisis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Comparison with Previous Crises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
3. The World Bank Group’s Response . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
World Bank Response . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
IFC Response . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
MIGA Response . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
4. Assessment of the World Bank Group Response. . . . . . . . . . . . . . . . . . . . . . . . . 46
Assessment of World Bank Response . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Assessment of the IFC Response . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Assessment of MIGA’s Response . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
5. Lessons and Issues for the Future . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
Lessons from Past Crises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
Emerging Lessons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
Issues Going Forward . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .80
Appendix A: Evaluation Met