Exploring an Umbrella Approach. Roberto Tarallo, Manager Global Partnership and Trust Fund Operations
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1 Exploring an Umbrella Approach Roberto Tarallo, Manager Global Partnership and Trust Fund Operations 1
2 Outline Context Sustainable Development Trust Fund Portfolio Objectives for an Umbrella Approach Examples of Current Programs with Relevant Features Generic Features of Current Programs Questions for Discussion Next Steps 2
3 Context Trust funds supplement national efforts and support global public goods often responding to external drivers: many positive experiences ( e.g., MDTF and programmatic approaches) But fragmentation remains: multiple, individual trust funds across multiple sectors and themes; uncoordinated fund-raising wide range of funding allocation processes, individualized planning, monitoring and reporting requirements IEG Evaluation: need for a more structured approach to mobilizing and deploying trust funds 3
4 Sustainable Development Trust Fund Portfolio External Drivers Globalization Social Responsibility World Summit on Sustainable Development (2002) Interdependence Sustainable Development (1987) Earth Summit (1992) Rise of the NGO Improvements in Climate Science Millennium Development Goals (2000) Global Food Crisis (2008) G-20 Summit, Pittsburg (2009) Internal Drivers Sustainable Development Food Crisis Sector Themes Infrastructure Agriculture Climate Change Cross-cutting themes Institutional Reform DGF Starts (1997) INF ESSD SDN Created (2006) Growth of GPPs GPPs CGIAR WSP ESMAP Social Devt Civil Society Fund Montreal Protocol GEF InfoDev Forest Partnerships PPIAF TFESSD Critical Ecosystems PIDG WPP PROFISH Save Our Species EI-TAF Global Food PSIA Crisis Response HLTF on Food EITI Security Global Ag & Food Security Carbon Funds GPOBA CIFs GLOBE
5 An umbrella approach? A mechanism, linked to specific sectors/themes, to facilitate a more strategic and disciplined approach, that will increase development effectiveness and operational efficiency, building on today s good practices/existing mechanisms 5
6 Examples of current programs with relevant features. Governance Partnership Facility (GPF) Energy Sector Management Assistance Program (ESMAP) Global Facility for Disaster Reduction and Recovery (GFDRR) Objective: Supports Governance and Anti- Corruption Strategy (GAC) Supports a Strategic Business Plan endorsed by its governing Consultative Group (CG) for the Energy Trust Funded Programs (ETFPs) Supports Hyogo Framework for Action (HfA) Governance: Decision-making Reporting: Financing Governance Partnership Council (annual work plan); Standing Review committee (proposal selection); Secretariat (call for proposal processing) Annual report Multi-donor trust fund with 3 donors Consultative Group (5-year business plan); Technical Advisory Group (annual review); Secretariat Annual review; annual knowledge exchange Multi donor trust fund with 12 donors; Consultative Group (strategy); Results Management Council (technical guidance); Secretariat (day-to-day ops) Annual progress report 4 Multi donor trust funds with over 30 donors; 4 single donor trust funds 6
7 Examples of current programs with relevant features.(cont d) Governance Partnership Facility (GPF) Energy Sector Management Assistance Program (ESMAP) Global Facility for Disaster Reduction and Recovery (GFDRR) Program Management: Multiple windows Block grants Capability for rapid response 3 windows: (1) Country-based comprehensive programs; (2) Innovative governance work; (3) Knowledge and Learning Call for Proposals, selection via competitive basis 4 components: (1) Energy Assessments & Strategy Programs; (2) Energy Efficient Cities Initiative (3) Renewable Market Transformation Initiative; and (4) Pro-Poor Access TA Partnerships block grants to regions 3 business lines and special initiatives: (1) Track I, Global and regional partnerships; (2) Track II, Mainstreaming disaster risk reduction and climate change adaptation into development; and (3) Track III, Partnerships for sustainable recovery Capability for rapid response Callable fund Implementation/Results : Mostly BETFs. Program specific processing, supported by existing Bank systems Activity selection centralized in the secretariat Results monitored in the secretariat Mostly BETFs. Quality assurance includes regional review and decision meetings on proposals Bank s results framework guidelines and core indicators 80% BETFs, 20% RETFs, Secretariat staff supported by regional coordinators Some program specific processes Multi-year results framework Results based performance management Fundraising: Funding received on a rolling basis, donor decentralization 5-year strategic business planning framework underpinned by 3-year rolling plans Based on partnership strategy and country program needs 7
8 Generic features of existing programs ALLOCATION OF FUNDS Multiple windows Call for proposals/ bloc grants OBJECTIVES Bank/donor strategies GOVERNANCE Steering Committee Technical group Secretariat Reporting Multi-donor Trust Funds Programmatic 8 RESULTS Bank results framework Bank is accountable IMPLEMENTATION Bank policies for AAA (BETFs) or projects (RETFs) FUNDRAISING Multiple-year Rolling plan
9 Questions for discussion Overarching Do you agree that that a more programmatic, multi-donor approach would be beneficial? What are the opportunities, risks, constraints to move in this direction? How can we ensure strategic alignment from Donors, Bank, and recipients perspectives? Governance How active a role should Donors play in governance arrangements? How can we ensure that these arrangements are simple and cost-effective? Implementation What elements of existing programmatic arrangements do you consider desirable? Are there any additional characteristics we should consider? What principles should guide the allocation of funding? Are top-down mechanisms such as bloc grants or windows a desirable feature? 9 In sum, what organizing principles should guide the objectives, governance, allocation, results orientation, fundraising of an umbrella approach?
10 Next steps Develop concept note, identifying a framework of organizing principles to benefit beneficiary countries and strengthen Donor-Bank partnership Further consultations, including a survey focusing on governance, operational mechanisms, results, reporting and fund-raising Finalize concept note, subjected to external peer-reviewing, with proposed action plan 10
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