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About this Evaluation

 


In 2010 the Governors of the IDB approved two formal agreements—the “Cancun Declaration” and the “Report on the Ninth General Increase in the Resources of the Inter-American Development Bank”—leading to the Bank’s Ninth General Capital Increase (IDB-9). These agreements tied IDB-9 to a series of reforms broadly intended to strengthen the strategic focus, development effectiveness, and efficiency of the Bank to help it remain relevant and competitive in the years ahead.

IDB’s Office of Evaluation and Oversight (OVE) was charged with conducting a midterm evaluation to assess whether these reforms were being implemented fully and effectively. The findings and suggestions are summarized in the Overview report, and 22 accompanying background papers provide more in-depth suggestions for individual topics and sectors.

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MAIN FINDINGS

The evaluation finds that IDB Management has made intensive efforts to implement the IDB-9 mandates, and the requirement of “full implementation” has been met or is in the process of being met in most areas. Progress toward “effective implementation” has been more mixed. Though it is too early to assess results definitively, the evaluation can help identify areas where changes may be needed to ensure effectiveness down the road.

Progress is evident in many areas. The Bank’s focus on results has increased, particularly at the project level, and continued efforts will help to complete the implementation of the Development Effectiveness Framework and deepen results-based budgeting. Steps have been taken to strengthen safeguards, anticorruption initiatives, and the use of country systems, though some implementation challenges remain. A new policy on information disclosure has been adopted but needs further clarification to close potential loopholes and ensure its objectives are met. With regard to operational instruments, the Bank’s lending has been relatively effectively structured, though its nonlending instruments (notably technical cooperation) remain work in progress. Reforms on the financial side, including new rules on income management and capital adequacy, have been implemented as intended, and continued attention and adjustment will help ensure optimal use of Bank capital and maintenance of the Bank’s AAA credit rating. Reforms to strengthen the Bank’s business processes and human resource management are also moving forward, albeit with significant delays on the business process and IT side.

In contrast, effectiveness has been limited in some areas. These include the set of reforms designed to promote the Bank’s strategic selectivity, including the corporate results framework, lending targets (including mandated transfers to Haiti), sector strategies, and country strategies and programming. These reforms face inherent tensions with the demand-driven orientation of the Bank, and approaches are needed that can help meaningfully identify where Bank capabilities and borrower demand intersect. The most challenging areas to date, where OVE recommends major redesign, include the strategy and coordination of operations in support of private sector development, the Macroeconomic Sustainability Assessments, and the Independent Consultation and Investigation Mechanism.


RECOMMENDATIONS

  • Begin a process to update IDB’s institutional and sector strategies and revisit the Corporate Results Framework with an eye to simplification, improved data accuracy, and full knowledge and ownership by Bank staff and other stakeholders.
  • Revisit the formal role and content of Country Strategies and Country Programming Documents to balance the need for strategic selectivity with the essentially demand-driven character of the Bank.
  • Restructure the private sector windows of the Bank to integrate them much better with each other and with the public sector side of the Bank.
  • Undertake further reforms to streamline resource allocation processes and results monitoring for technical cooperation and capacity-building work.
  • Complete the implementation of the Development Effectiveness Framework as envisioned in the Cancun Declaration and IDB-9.
  • Focus the Haiti program intensively on sustainable poverty reduction and economic growth, moderating short-term pressures for loan approvals and disbursements to take into account the country’s absorptive capacity, and providing adequate space for critical yet smaller or slower-disbursing activities.
  • Redesign the Macroeconomic Sustainability Assessment (MSA) process.
  • Reform the Independent Consultation and Investigation Mechanism (MICI).
  • Revise the policy on information disclosure.
  • Undertake further analysis and scenario testing of the Income Management Model and the Capital Adequacy rules.

 

Read the Evaluation


 

Background Papers



   Institutional Strategy

Social Sector Strategy for Equity and Growth
Regional and Global Integration
C. Change Adaptation & Mitigation, & Sustainable & Renewable Energy
Institutions for Growth and Social Welfare Strategy
Haiti
Private Sector Development Framework

 

 

 

 

 

 

 

 Operational Instruments and Processes

Results Measuring and Monitoring

Lending Instruments
Knowledge  Products
Country Programming
Country Systems
Corporate Results Framework
Development Effectiveness Framework and Overview

 

 

 

 

 

 

 

   Safeguards and Accountability Mechanisims

Macroeconomic Sustainability Assessments
Environmental, Social and Gender Safeguards
Independent Consultation & Investigation Mechanism
Combating Fraud and Corruption
Access to Information
 
 

 

 Resource Management 

Survey

Operational Performance and Budget
Integrated Business Solutions (Project Optima)
Human Resource Development
Financial and Risk Management
IDB-9 Survey: Overview of the Results
 
 

 

 
AT A GLANCE

• This Mid-term Evaluation assesses whether IDB is fully and effectively implementing a series of internal reforms agreed during the Bank's Ninth General Capital Increase (IDB-9).

 

• The findings are summarized in the Overview report, presented to the Governors of the Bank in March 2013.

 

22 background papers provide more in-depth analysis by topic and sector.

 

Background Papers - By Topic:

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