Catalogue of Best Practices



Management, Development

and Governance Division

APRIL 1997


Table of Contents



Section I: Introduction




Sources of Data


Outline of catalogue



Section II: Classification of Best Practices (charts)


by country, mechanism/institutional role, sector/focus area & results

by theme/focus area and country



Section III: Best practices in UNDPP/WB Collaboration







El Salvador






















Sao Tome




Trinidad and Tobago






 Section III.2: UNDP/WB Collaboration in Global, Inter-regional, and Regional Programmes: Case Studies from the Regional Bureaux for Africa, Latin America and the Caribbean, and the Arab States.



Evaluation of UNDP/World Bank

Water and Sanitation Program

The Global Water Partnership


Inter-regional projects

INT/92/001 & RAF/92/007:

UNDP/World Bank Wat & San. Program

Tripartite Review of RAF/92/007:

(Nairobi and Abidjan meetings/1995)

INT/92/005: UNDP/World Bank/UNHCS

Urban Management Program


Regional Programs

UNDP/WB/WHO Special Program for Research

and Training in Tropical Diseases

UNDPís Non-Core Resources

and Co-Financing Modalities

Mediterranean Environmental

Technical Assistance Programme:METAP III

METAP Evaluation Findings

UNDPís Aral Sea Basin

Capacity Development Project (RER/94/Q14)

The Global Environment Facility (GEF)

Reference Documents







Background, Scope and Methodology of Catalogue


1) Background


This catalogue of the "best practices" in World Bank/UNDP collaboration forms part of an exercise resulting from a 1995 Senior Management Meeting of the World Bank and UNDP. At that time, the decision was taken to establish three technical task forces responsible for formulating a broad framework for joint collaboration at the policy and operational levels. The three tasks forces are: (1) Country Cooperation Task Force; (2) Development Cooperation Task Force; and (3) Complex Emergencies Task Force. The mandate of the Country Cooperation Task Force is to identify key areas for future mutually beneficial country-based cooperation. This catalogue constitutes an input toward that end, and intends to accomplish two tasks:


  1. provide a compilation of the best practices to serve as the basis for identifying specific areas where collaboration between the World Bank and UNDP may be expanded;
  2. facilitate the cross-fertilization of experiences between countries and regions on the types and examples of successful collaboration between the two agencies.


2) Scope of Catalogue


This catalogue is neither a comprehensive, nor exhaustive compilation of best practices. The purpose of the exercise was not to chronicle all the collaboration experiences between the World Bank and UNDP, but rather to develop a prototype catalogue to which other cases of best practices may be added. It is essentially a sample document that may be the first in a series of approximations to catalogue those truly representative "best practices." During the compilation phase for this draft, several additional cases were identified by Bureaux staff members for possible inclusion. This catalogue therefore aims to help determine which practices merit an annotation in the catalogue, and which require further data analysis. The criteria for selection has more to do with the availability of comprehensive data on each case, rather than the intrinsic value of the case.


This is a Work-in-Progress. Other excellent examples in collaboration will be included as the exercise continues. This first effort is intended to invite comments, responses, and additional cases for submission, from the Bureaux and UNDP field offices. All Country Offices and Headquarter Divisions are invited to submit their examples to MDGD/BPPS for inclusion in future editions of this catalogue.


3. Sources of Data


All the information that has been collected for this catalogue represents specific country perspectives. It can be grouped into four categories:


  1. primary data from questionnaires on best practices sent by MDGD to UNDP country offices;
  2. documents on UNDP/World Bank collaboration made available by the Regional Bureaux at UNDP Headquarters;
  3. miscellaneous reports of collaborative experiences submitted by UNDP staff members; and
  4. evaluation reports of projects prepared by, or on behalf of, UNDP.


In order to ensure that the practices selected for this catalogue represent the UNDP perspective, those UNDP staff members who were most familiar with the cases were asked to submit their selections. In the country level cases, where questionnaires were prepared by MDGD and sent to the field offices for responses (data source a.), the person responsible was the Resident Representative or the Resident Coordinator. For the regional documentation, the regional bureaux at UNDP headquarters were requested to submit their selection of best practices for this exercise. Not all the regional bureaux are equally represented in the selection of best practices cases. Time constraints allowed only five regional cases to be reported. There will be a more balanced representation from the regional bureaux as the exercise progresses.


There were 53 responses to the MDGD questionnaire request from UNDP field offices. The information contained in the questionnaires was submitted on a voluntary basis. Of these responses, 17 used the format suggested by MDGD. This feedback was edited for language synergy and reproduced in the catalogue. Another 20 responses reported on miscellaneous activities in World Bank/UNDP collaboration..


All the data sources generate a wide variety of information. There is variety in the quality, relevance and content of the responses. The regional documents also vary in the consistency and completeness of the data. Every effort was made to synthesize the information, in anticipation of the needs of the user of the catalogue. In some cases, there is over-reporting, and in others, under-reporting. For the most part, the information is presented in the catalogue in its original form, with the editing necessary to achieve coherence and relevance. Altogether, the case studies offer an opportunity to decide which information is useful/relevant, what type of information is useful/relevant and how to improve future catalogues. It was not possible to pinpoint specific reasons or correlate causative factors for the "success" of the cases reported. This information was not solicited from the respondents and had to be taken at face value. In sum, the response was enthusiastic and the respondents communicated their strong support for this exercise as they await the final outcome.


4) Methodology for identifying/selecting best practices


The methodology used in identifying best practices will be further refined as the exercise continues; the present exercise serves as the starting point for future improvements. As indicated in the Country Cooperation Task Force Terms of Reference for Country-Level Cooperation, the World Bank and UNDP have been reviewing their programs and approaches to improve their focus, quality, sustainability, ownership and impact. To these ends, the following programme features were identified for further attention:


1. investing in people:ensuring that the disadvantaged especially can have access to development opportunities;

2. ensuring sustainability: so that development achievements will carry from one generation to the next;

3. seeking results: maximizing development impact, improving delivery of services and accountability;

4. building capacities: ensuring that individual and institutional capacities are adequately developed to perform functions effectively and efficiently;

5. client orientation: responding to national needs and facilitating multi-stage programme participation;

6. developing partnerships: moving coordination to partners in development with other participants from the multilateral, bilateral, governmental, NGO and private sectors.


From the UNDP perspective of Sustainable Human Development/Poverty Reduction, programmes, initiatives and activities are successful when they also serve to eradicate poverty, and progress toward national ownership. The features described helped to guide the selection of "best practices," as those programmes and activities which are consistent with the UNDP and World Bank objectives in their design and execution. For the regional programs, evaluation studies formed the basis for the reporting of best practices. These studies provided some insight into the aims and achievements of each programme, and an idea of their successes and results.


In attempting to synthesize the various types of information collected for this catalogue, it was necessary to select those cases that satisfy, or conform most closely to, the features described in the WB/UNDP Task Force on Collaboration Terms of Reference. This measure aimed to avoid arbitrary selections based on anecdotal or impressionistic evidence.


5) Outline of Catalogue


The catalogue has three parts. Part I provides the Introduction, Part II highlights the institutional roles of UNDP and the World Bank, the nature of the collaboration and a summary of results. This section also includes a table showing the best practices (grouped by theme/focus area) and the countries involved. Part III presents the text of each country and regional case.










Institutional role


Focus Area






Project,UNDP/WB Co-financing

Health - Mother/Child Nutrition Program

6 provinces with Prov. Implement Units


Round Table,

Project restructural

Adjust. Program/ Economic Reform


Joint Missions

Poverty Reduction;

Economic Management

Joint evaluation of 2 Phases of Struct. Adj. Prog;



Integrate financial and economic planning instruments


Preparation for CG; UNDP lead agency for aid management/coord..




Forestry Policy Review Public Administration Reform


Projects for Capacity Building

Environment, Privatization, Public Enterprise

Assistance to Environ. Affiars Agency

El Salvador

Project; UNDP administers/

implements WB



Investment, Social Sectors (educ.)

National Execution, Delivery of WB resources improved; Joint project evaluation


UNDP Capacity -

Building, WB Executing Agency

Pilot Project

Social Sectors

Social Rehabilitation Fund; Training & Management of Fund


Information-Sharing Missions Briefing

Public Sector Reform

Public Sector Reform Training; Local Ownership


Round Table,

UNDP Capacity

Building National Program



Donor Assistance

Improved Donor Consultation; Bank Policy Framework Paper







Institutional role


Focus Area



UN Heads of Agency Inter-Agency Meeting

Water and Sanitation HIV/AIDS Basic Education

UN Inter-Agency Working Groups UN System Program Support Document





Decentralized Field Structure, Community Participation


UN/UNDP/BWI new offices opened in 1992-3

Close professional, personal and institutional relations

Ministry of Welfare industrial restructuring









Poverty Eradication,



Aral Sea environ.

protection, sustainable livelihood

Monitoring and Evaln. Capability; Project Management Unit

WB loans for restructuring and financing social services; UNDP inputs to facilitate "model" actions


Support for national poverty action plan


Shared strategies in support to national and regional programs


Sharing program information/

operational partnership; Country Strategy Note; CG proc.

Drought recovery and rehabilitation prog.; Aid Coordination and Capacity Building

Kenya Coordination Group; 11 Program Coordination Groups, Prog. Working Groups


WB Project; UNDP co-finance components

Social Policy

Social Policy


Round Table, CG meetings; UNDP coordinating agency


Bank resources; studies for Sectoral RT Consultations Agric. Environ. Impact Assess.


Project: UNDP/WB



UNDP-funded, WB


Industrial Enterprise Training


Industrial Technology



Framework for internally generated, demand-driven

policy strategy for technological upgrading


Joint propositon for institutional mechanisms for SHD

Poverty Reduction

Government Administrative Unit to oversee Poverty Issues


CG meeting; Information Exchange; Direct and regular contact

Aid Coordination Economic Management

Review of Public Expenditure; Country Strategy Note; Program of Economic Management and Capacity Building


Project; co-financing

by UNDP; Information Exchange

Poverty Alleviation; Social Sectors

Enhancing Government Strategy for Social Development


Nepal Donors Group Meeting Co-chaired by UNDP and WB

Donor Coordination

Sector Coordination Groups Established


WB Project loans; UNDP disburses funds


various sectors

Development model for integrating production, storage, marketing for small/medium farmers



UNDP administered

WB funds

Irrigation Systems



WB Project

Planning Facility Training Program; Conservation of natural resources


Consultative Group;

UNDP/WB Co-chair

Working Group on Povt.


Coordination; WB lead role; UNDP coordinator consultative process

NGO representation valuable;

development issues discuss.;focused.

Poverty, Pub.

Expend Management

Sierra Leone

Round Table, Consultative Groups;

Aid Coordination Poverty Reduction, Reconstruction and Recovery

Mobilization of resources for post-conflict resettlement,poverty reduction, good governance;

Facilitates WB

Sector Investment

Programs and UNDP Program approach




National Capacity


Project Management Unit; Environ. Studies of the 7 river basins


Monthly DAC

Meetings; UNDP


Donor Coordination

Civil Service Reform, National Aids Control Programs


UNDP-financed PE Review; WB/UNDP consult on Review Framework


UNDP coordinate poverty eval. Study, WB assist in formulate national strategy,poverty profile data

Public Expenditure





Poverty Alleviation

Report on Review consultations presented at 1996 Round Table


Coordinated approach to PA program: UNDP focus on global aspects,WB on regional and local funds, projects










Institutional role


Focus Area



Policy dialogue; project cooperation:

UNDP funding for


Aid Coordination;


Economic Management

Case Study on Aid Coordination;


Training proj. evaln.



Joint Preparation of

Collaboration Efforts by UNDP/WB. Country Strategy




Agriculture Sector Investment Program National Environment Action Plan










Education--------------------------------India, Morocco, El Salvador


Water and Sanitation------------------- India, Indonesia, Philippines


Water Resources-----------------------Yemen, Lesotho


HIV/AIDS Joint UN Program----------India


Donor Coordination--------------------Tanzania, Sierra Leone, Vietnam


Aid Coordination-----------------------Nepal, Kenya, Philippines, Yemen


Round Table----------------------------Cambodia, Sierra Leone, Burundi, Bhutan


Country Strategy Note------------------Tanzania, Togo, Mauritania, Lesotho, Guinea-Bissau


Consultative Group---------------------Vietnam, Kenya, Mauritania, Philippines, Lesotho, Kyrgyzstan


No Bank Country------------------------Iran, Sao Tome, Gabon


Representation---------------------------Sudan, Myanmar, Morocco

New Bank Offices-----------------------Turkmenistan, Kazakstan, Bhutan, Georgia


UNDP Credibility/Transparency--------Iran, Peru, Paraguay, Philippines, Vietnam


Neutrality---------------------------------El Salvador


Community Participation/

Participatory Approach------------------Indonesia


Poverty Alleviation----------------------Morocco, Kazakstan, Burundi, Sierra Leone, Togo

Mali, Yemen, Zimbabwe, Mongolia


Economic Reform/Management--------Burundi, Sao Tome, Egypt, Guinea-Bissau


Monetary/Financial Reform------------Angola, Cambodia, Vietnam

Haiti, Lebanon, Kazakstan, Mauritania


Public Sector Reform------------------Lebanon, Togo, Mauritania, Peru


Public Enterprises----------------------Fiji, Egypt, Kenya, Sao Tome


Social Fund, Social Welfare/----------Angola, Morocco, Ethiopia, Latvia



Environment----------------------------Kazakstan, Syria, Iran, Cambodia, Yemen, Trinidad & Natural Resources Tobago, Zambia, Peru


Agriculture/Rural-----------------------Sierra Leone, El Salvador


Development, Road Infra-Structure----Paraguay, Lesotho


WB Sector Investment Program--------Sierra Leone, Zambia


Africa Special Program of Assistance-Sierra Leone, Mauritania


Industry Sector---------------------------Malaysia, Kazakstan


Land Registration------------------------El Salvador


Health, Nutrition-------------------------Argentina


Information-Sharing, Office-------------Fiji, Guinea-Bissau, Gabon


Administrative Support-----------------Yemen, Turkmenistan









UNDP/World Bank Collaboration: Background, Mechanisms and Results


UNDP and the World Bank have established regular contacts for collaboration and coordination of activities in Angola. In 1987, the Government adopted an economic and financial reform program aimed at improving the performance of the economy and modernization of its management in order to obtain better structural balance of productive sectors, augmentation of domestic reserve and policy reforms, enabling measures to attract foreign capital and the management of skills and technology. UNDP and the World Bank closely collaborated to assist the Government realize these programs.


UNDP and the World Bank carried out the Introductory Economic Review under a UNDP-financed project which provided the groundwork for the acceptance of Angola as a member of the Bretton Woods Institutions in September 1989.


UNDP is continuing to support the Economic and Financial Reform in Angola through several projects including the Financial Systems Development project executed by IMF which will enable the countryís major financial institutions to operate more efficiently and respond to challenges of changes in the macro-economic framework.. The UNDP/IMF assisted project also provides measures for public accounting, tax administration and legislation, customs administration, monetary policy and Central Bank statistics.


UNDP and BWI have had fruitful exchanges on the preparation and the follow-up of the Round Table Conference in Angola which was held in September 1995 in Brussels. There were consultative arrangements for the Round Table. The two institutions consulted and exchanged documents both in the preparation phase and the actual pledging session on which the World Bank supported the Community Rehabilitation and Reconciliation Program and pledged US

$ 180 million. The two institutions also cooperate in the World Bank Social Fund Program and in pushing the Government to put in place a sustainable macro-economic program. There are regular meetings and consultations at the Directorate level and on a technical staff level. More recently, there were consultative meetings in March 1996 and June 1996. On a technical level the staff of both institutions currently meet in Angola as well as in Washington.




UNDP/World Bank Collaboration: Background and Mechanisms


PROMIN Project ARG/93/006 Support to the Coordinating Unit of the Mother and Child and Nutrition Program.


This program was formulated on a budget of US $150,000,000 of which US $100,000,000 come from a World Bank loan, and the remaining from national and provincial loans. The program duration is five years. The program involved, in the beginning, six provinces where seven identified projects benefited 500,000 mothers and children under six years of age. Another eleven provinces are receiving technical assistance to enable them to formulate their own projects and join the PROMIN program.


PROMIN is currently being executed in several critical areas of Argentine provinces. Some of them are receiving UNDP assistance through projects which are integral components of the umbrella PROMIN Program, such as in the provinces of Buenos Aires, Mendoza, Tucuman, and Formosa.


The fact that the number of jurisdictions under the Program has been increased is an indicator of success. The Program consists of three components: the first, a maternal and child health and nutrition component that would strengthen the organization and resource use for delivering a package of basic health and nutrition services targeted to mothers and children. The second, an early childhood development component would support the institutionalization of a new model of comprehensive physical, mental and social development of preschoolers. The third component, aimed at institutional strengthening, would support the improvement of planning and management capacity of services, and the development of a more rational mother and child policy.


A total of 398 training workshops, courses and seminars had covered the following: a) activities aimed at ensuring adequate preparation and start-up of project activities; b) management activities to reinforce the administrative capacity of personnel involved in the project, and c) in-service training for providing knowledge and skills needed for specific tasks.


Provincial Implementing Units (PIUs) are fully operational, coordinating the different jurisdictions and sectors involved in the Program. This has allowed to revamp the physical plant of 44 health center, 38 child development centers and one hospital, being functional normally a total of 78 health centers and 32 child development centers.


This project is being executed nationally. Cost sharing arrangements involve US $29m national resources.


Results Achieved


Impact: The PROMIN is currently being executed in several critical areas of six Argentine provinces. Some of them are receiving UNDP assistance. In the provinces where projects are components of the umbrella PROMIN program, UNDP is supporting the corresponding PIUs in their capacity to reach the programís objectives and execute the activities foreseen in the areas under the program. The PIUs are fully operational, coordinating the different jurisdictions and sectors involved in the Program: health, education and nutrition.




UNDP/World Bank Collaboration: Background, Mechanisms and Results


(1) Support to the Structural Adjustment Program


UNDP has financed a project to support the SAP executed by the World Bank. The objectives were: to evaluate the first and second phases of the SAP, and to support the formulation of economic reforms required for the third phase of the adjustment program. This project allowed UNDP to be involved directly in the evaluation exercise, and the design of the reforms. UNDP has collaborated with the Bank in all the technical committees responsible for preparing Phase 3, in particular, at the level of the management of public resources, and the social dimension of structural adjustment. The negotiations for the third phase in Washington involved the integration of the program for public investment, the program for public expenditure, and the program for technical cooperation. These are the tools for managing public resources that the Bank wished to see form the framework for phase 3. UNDP has participated in all the missions of the World Bank for the formulation of a project concerning the social dimensions of adjustment. This project is operational at present.


(2) The Integration of the Instruments for Economic and Financial Planning


In 1994, the World Bank and UNDP organized and conducted a joint mission on the harmonization and integration of the PIP/PCT/PDP and the state budget. The mission comprised of 2 consultants, one recruited by the WB and the other by UNDP. The mission proposed a harmonization of these instruments, which was presented at a thematic consultation on the strengthening of capacity for economic management. Both consultants shared responsibility for the mission tasks.


(3) Round Table, 1992


The World Bank contributed to the preparation of the documents for the Round Table. A WB economist took part in a ad hoc technical committee and participated in the finalization of the documents, and elaboration of the issues discussed at the Round Table. The main features included poverty reduction and the strengthening of economic management capacity.




UNDP/World Bank Collaboration: Background, Mechanisms and Results


Since UNDP resumed activities in earnest in Cambodia during the second half of 1991, UNDP and the BWI have worked closely together on a range of activities. The World Bank has served as executing agency for a number of UNDP-financed projects particularly those dealing with water supply, where the work undertaken has had a strong pre-investment focus. These projects are becoming less important given the shift in emphasis of the UNDP program in Cambodia from one addressing the immediate needs of post-conflict relief and rehabilitation to one addressing medium- and longer-term sustainable human development issues.


Second, and during the period 1991-1994, the BWI were essentially prohibited from engaging in any lending activities in Cambodia owing to the need for Cambodia to clear its arrears with both institutions. During that time, both the Bank and the Fund were anxious to initiate a policy dialogue with the Cambodian authorities. This policy dialogue was carried out, in a way, through UNDP. This applied mainly to the Fund which, in collaboration in the early stages with the Asian Development Bank, became executing agency of an important monetary and financial reform project. This project, which commenced operations in mid-1993 under preparatory assistance, was designed to create a two-tiered banking system in Cambodia and at the same time to formulate a revenue enhancement program which would in effect wean Cambodia off its heavy dependence on highly volatile import and export duties to underwrite current government expenditures.


Third, UNDP, the IMF and the Asian Development Bank collaborated closely throughout 1992 and 1993 to support preparations by the Cambodian authorities for the Ministerial Conference of Donors held in 1992 as called for in the Paris Peace Accords and for the subsequent series of meetings of the ICORC Donors Group which was chaired by the Governments of Japan and France. In the course of those meetings, due recognition was given to UNDP, especially by the World Bank, as the lead agency in Cambodia for local-level aid management and aid coordination and for capacity-building on the Cambodian site for aid management/aid coordination.


Fourth, UNDP and the World Bank have collaborated closely in a major program of public administration reform in Cambodia which involves the radical down-sizing of the Cambodian civil service. Cambodia has become a Consultative Group country. The first meeting of the Cambodian CG is scheduled to take place in July 1997. UNDP continues to play a vital role in assisting the Government of Cambodia to prepare for the initial meeting. UNDP, the World Bank and the Asian Development Bank have been assigned very specific roles in respect of the CG process. UNDP has commissioned a major study on capacity-building in Cambodia which is expected to be tabled at the first CG meeting.


Cambodia Forestry Program: UNDP/FAO/World Bank Forest Policy Review


The Cambodia Country Office received various forestry proposals for which funding was available. Forests are an important issue economically and for the environment. The Finance Minister of Cambodia then asked the World Bank for help due to the diversion of substantial forest revenues in the country. World Bank consulted with UNDP, then both with FAO and the three undertook a joint review mission late in 1995. In February 1996, the WB director and mission leader and UNDP were invited to Cambodia to present the findings to the Ministers of Finance, Agriculture (Forestry) and Environment. Official comments have not yet come in, so the joint program suggested in the review analysis is yet to be accepted.


There was a Policy Assessment Joint Mission in November/December 1995. Following the consultation with the Royal Commission of Cambodia in February 1996, the mission report returned to Washington for final review and completion. The Executive Summary of the draft report found its way to the local Press, leading to a significant expression of interest on the part of NGOs and donors. Furthermore, it became known that the Government was organizing the sale of "old" logs which had not been previously reported, leading the IMF to suspend the second tranche of its loan pending conduct of a transparent inventory and review of the auction management process.


This all occurred in the lead-up to the First Consultative Group meeting for Cambodia, which was held in July in Tokyo. Because of the attention drawn to the forestry issue generated by the UNDP/FAO/World Bank Forest Policy Review and the IMF action, the Government organized a pre-CG meeting. Donor interest and media attention remain high. It is a good time to encourage and assist the Cambodian Government to move forward on its commitments. UNDP and FAO are working closely on this locally, while maintaining close contact with the WB in Washington.




UNDP/World Bank Collaboration: Background, Mechanisms and Results


EGY/89/006 Program Approach for Tourism Development


The UNDP and World Bank cooperation was instrumental to the government of Egypt in the development of a technical capability (The Tourism Development Unit) which was established in 1989. The main objective was to provide the Ministry of Tourism with the ability to prepare a national strategy and action plan for the tourism sector to achieve sustainable tourism development, promotion of investment and a larger role for the private sector. The TDU succeeded in formulating a comprehensive development program, and preparing projects which attracted funding from several international institutions. The Unit achieved financial viability within about 3 years. The TDU was transformed into an authority in 1991 through a Presidential decree to provide it with jurisdictional authority to own land, implement projects, and control development in a sustainable manner.


EGY/91/011 International Cooperation Unit for the Environment


The World Bank and UNDP are jointly carrying out several environmental activities with the Egyptian Environment Affairs Agency (EEAA) within the framework of cooperation between the Government of Egypt and the two international agencies. The main ones include:


1 Assistance to EEAA in the preparation of the National Report on Environment and Development in Egypt

2. Projects under the Mediterranean Environment Technical Assistance Program

3. Projects to implement the Montreal Protocol related to the ozone protection

4. The identification of proposals under the Global Environment Facility (GEF) and the tracking of their implementation.


A preparatory assistance document was designed to assist the EEAA in preparing, coordinating and managing the environmental activities supported by UNDP and the World Bank and approved by the Government of Egypt. The project was financed by UNDP and executed by the World Bank. An Environment Action Plan for Egypt was developed in May 1992 with support from UNDP, the WB and the international donor community. It outlined Egyptís current and future environmental programs and priorities to be supported by environmental legislation, financial facilities, institutional development support and policy measures. UNDP technical cooperation was extended to (a) set up a technical secretariat to help the Environmental Affairs Agency to build capacity for the management and implementation of the countryís action plan; (b) develop an environmental country profile for monitoring; (c) develop impact assessment capabilities; (d) assist in the mobilization of resources; and (e) provide other coordination and policy development support as required.


EGY/92/013 Strengthening the Public Enterprise Office for the Privatization Program


UNDP and WB Cooperation had its impact in the initiation of this Program from the very beginning. The World Bank called for a general donor meeting with the Government of Egypt in Washington. A Round Table meeting was held in which the Privatization Program was put at the Table and where each donor expressed their interest in the area to be assisted in the Privatization Program. UNDP had the comparative advantage in assisting the Technical Arm of the Ministry, namely the Public Enterprise Office. The creation and support of the PEO are critical factors in the reform of the countryís enterprise sector. The PEO is pivotal in the reform process since through the privatization effort the public enterprise sector will be revamped. The PEO is acting as the intermediary between the Government and its holding companies and their affiliates.


EGY/92/014 Development of the Securities Market.


The Government of Egypt has embarked on a major structural reform Program. Reactivation and development of the securities market and training are critical to the success of these reforms.


The World Bank and UNDP assisted the Government of Egypt in this initiative. A six monthsí Preparatory Assistance executed by the World Bank formed the basis for the program from the design of the implementation of the legal, institutional and operational reforms required to activate the securities market and preparation of an action-oriented training program for the Public Enterprise Sector. At the end of the Preparatory Assistance, the project continued its activities as a UNDP project through National Execution.


Market infrastructure is now completed and the market is ready to move to a higher level of development. A developed infrastructure to disseminate information to market participants and the public has been established. The inputs provided by the project have been instrumental in designing and implementing the market infrastructure systems i.e. surveillance, trading, delivery/payment clearance, settlement and finally the re-engineering of the stock exchange. Implementation of the reform program is expected to result in 1) a more efficient securities market capable of serving as a revitalized source of capital formation; 2) broader ownership of economic assets, which, overall will contribute to the creation of a more vibrant economy.




In 1991, the Government of Egypt embarked on an Economic and Structural Adjustment Program (ERSAP), which started with the signature of a Stand-by Agreement with the IMF for US $400milliion and a Structural Adjustment Loan (SAL) for US $300million from the World Bank. A Technical Secretariat was established at the Ministry of International Cooperation to monitor the implementation of the Economic Reform and Structural Adjustment Program. To carry out this function in a sustainable manner, a build-up of both monitoring and implementation capacity was needed. UNDP technical cooperation is being provided not only to help ensure that targets are being met, but more importantly, to ensure that the implementation of the program is monitored from the standpoint of its impact on the growth and structural change of the economy, on the development of the private sector, on the level of employment and real wages and on the standard of living of the population. UNDP is providing capacity-building support to the technical secretariat established to assist the Interministerial Economic Reform Committee in coordinating and monitoring the implementation of the reform program and in formulating macro-economic policy on a continuing basis, thereby enhancing Egyptís capacity for economic policy formulation.




Background and Objectives of Collaboration


Since 1992, World Bank funds administered by UNDP in El Salvador amount to US $77million. Cooperation between UNDP and the Government in the execution of World Bank initiatives can be traced back to two distinct periods. The first includes those projects approved during the time of the 1992 Peace Accords. The second period refers to those initiatives negotiated and signed three years after the Peace Accords. The first period included the World Bank loans to finance "Rehabilitation of Social Sector" (US $15 million) and "Investment and Reform of the Agricultural Sector" (US $ 13 million). In both cases the World Bank conditioned the loans to UNDP involvement in administering the resources and monitoring the implementation of the projects. The conditionality resulted from UNDPís growing expertise in supporting Latin Americaís governments to implement World Bank loans.


During the second period, the demonstrated "good service" and the strengthened capacity of the UNDP office during the first period as well as the size and complexity of the new WB loans/grants convinced the Government to accept UNDP as administrator of World Bank funds. As a result, the World Bank-UNDP collaboration was approved for "Modernization of Basic Education" (US $30 million), "National Land Registration Catastro" (US $8 million) among others.


Mechanisms and Institutional Arrangements


The institutional relationship between the World Bank and the UNDP is not a direct contractual arrangement. All World Bank loans/grants are agreed directly between the Bank and the Government. UNDP does not appear as signatory in the loan/grant Agreement although it is mentioned as administrator of resources. In most cases, UNDP also is mentioned for implementation purposes in the WB Appraisal Report after approval of WB resources, a Government cost-sharing national execution project reflecting the UNDP involvement in the implementation of the WB resources is approved. The World Bank does not sign the project document.


The UNDP role in administrating World Bank resources relates mainly to input delivery, for purchase of equipment and contracting of personnel/firms. Norms and procedures dictating the input delivery of UNDP nationally-executed projects funded by cost-sharing originating from the WB are outlined in the Standard Annex.


The UNDP office often plays a key advisory role in the formulation of the loan/grant agreements. This is not due to formal institutional mechanisms between both organizations, but rather to UNDPís technical expertise of both the country situation and WB processes. It is also fair to say that in certain cases in the past, UNDP did not participate in the formulation of the WB Agreement nor did the Agreement refer to UNDP as administrator of resources.


UNDP has often supported Government institutions with compliance with WB conditionalities necessary for loan/grant effectiveness (i.e. procurement plans, project workplans, terms of reference, for example). The El Salvador UNDP office includes an experienced purchasing and management of contracts unit financed by UNDP resources. This unit, knowledgeable of WB procedures, allows for a greater fluidity in the implementation of WB resources. To date, the WB has not objected to any of the purchase/contracting recommendations of the unit.


In many cases where the WB Loan/Grant was in the process of approval, UNDP has advanced resources for project initiation. This has not only accelerated the rate of delivery but has also allowed the government to make significant headway in the early stages of project implementation.


Results Achieved


(1) UNDP provides added-value in terms of transparency and efficiency in the delivery of World Bank resource (contracting of personnel, firms or purchase of equipment).


(2) Under UNDP administration, the delivery rate of WB resources has increased significantly, with the corresponding savings in interest payments related to WB loans. As an example, in project "Rehabilitation of Social Sectors", all the project objectives and disbursement of resources were completed in a time period equivalent to 90% of that originally estimated in the Agreement. Moreover, savings equivalent to 25% of the original budget took place.


(3) Another example illustrating the difference between UNDP and non-UNDP involvement is the comparison between the WB loan to assist the Lempa River Water Basin in which UNDP does not play a role, and the WB Education loan administered by UNDP. In the former case, where the loan was signed in 1993, as of now the project has not even started. In the Education sector loan signed in October 1995, over 60% of the resources are already committed.


(4) UNDP involvement has also been instrumental in enhancing the Governmentís own procurement capacity. By conducting specific training activities as well as continuous training on the job, a number of counterparts have become familiarized with the Bankís procurement procedures.


(5) Another important result is that UNDP involvement allows personnel of sectoral ministries to devote themselves to their sectoral responsibilities and less to WB administrative requirements. For example, Ministry of Health personnel can focus on maternal health issues and less on preparing WB financial reports.


(6) There is a strengthened relationship between UNDP and the WB, which translates into joint project evaluations using the WB methodology and thus avoiding duplication of effort and resources. This relationship has increased UNDP credibility to play a role in the formulation and evaluation of WB interventions.


(7) The extrabudgetary resources generated from administrating WB funds have allowed the El Salvador UNDP office to not only promote other Sustainable Human Development initiatives, but also have credibility within the country. Furthermore, the UNDP/WB cooperation has become an important entry point for more high impact upstream interventions as they provide the opportunity to engage in policy dialogue with the government.


Lessons Learned


(1) The two different accounting systems of UNDP and WB undermine effective administration of resources. It is important that in the case of cost-sharing originating from WB resources, UNDP mechanisms of financial accountability be those of the WB or an agreed system between both institutions. In the present system, the UNDP office duplicates effort by preparing two sets of financial reports reflecting UNDP format and WB format respectively.


(2) The disbursement modality of project funds is based on UNDP advancing resources which are eventually reimbursed by the WB upon submission by the Government to the WB of financial disbursement reports. In several cases this modality has resulted in temporary negative balances of project resources. It is highly recommended that the UNDP advancement modality be changed and that the WB advance the funds to be subsequently accounted for in the WB disbursement reports.


(3) Many of the projects included in UNDPís Annual NEX Audit Exercise are financed from WB resources and are also subject to WB/Government auditing. This results in an unnecessary duplication of effort and resources. UNDP should accept the WB audit to be included in the list of NEX projects subject to UNDP auditing.


(4) Although the UNDP office has played a key role in the formulation of the WB agreements, this role is not based on a formal institutional arrangement. It would be desirable to have a formal UNDP/WB mechanism in place to allow UNDP to continue to play this advisory role.


(5) Finally, there is untapped potential for future UNDP/WB collaboration. The Latin American experience of these last few years has demonstrated that UNDP can continue to play an important role in advocating and promoting Sustainable Human Development while at the same time providing efficient and transparent services to the International Financial Institutions (IFIs). This is partly because of its servicing role, UNDP continues to have a strong and relevant voice in promoting SHD in Latin America. However, the Latin American model has also demonstrated that there is a certain level of improvisation that takes place when dealing with the WB or other IFIs. This is the result of lack of clear guidelines governing the WB/UNDP relationship at the operational level. It is therefore most important that UNDP acknowledge that the traditional project document, the traditional cost-sharing mechanisms the traditional disbursement modalities are possibly not the most adequate when dealing with funds originating from the IFIs. UNDP must adapt to this new role and identify these guidelines, preferably in the form of a comprehensive manual dedicated exclusively to UNDP-IFI collaboration.




UNDP/World Bank Collaboration: Background, Mechanism and Results


UNDP/WB cooperation has been demonstrated in the establishment of the Ethiopian Social Rehabilitation Fund (ESRF). ESRF has been initiated as part of the Ethiopian Reconstruction and Recovery Program to help those most affected by the civil war, and by drought, to reintegrate into society and into the economy. ESRF was established by the Government and assisted by the WB, UNDP and other donors, to encourage and support community rehabilitation and development efforts.


UNDP funded a project which was executed by the WB and designed to finance identified pilot preparation and evaluation necessary to establish the ESRF in two phases - pilot and expanded. The pilot phase assisted in the establishment of an institutional structure, a rapid assessment study in selected regions and training aimed at providing nationals with the skills and guidance needed to manage the ESRF. The expanded phase involved an evaluation of the pilot phase, a rapid assessment study in expanding to other regions and preparation for the expanded coverage of the ESRF.


As a result of the joint UNDP/WB effort in this project, a comprehensive and expanded social fund program - the ESRF was formulated and became operational in 1996. The budget for the next five years is US $242million, of which US $120million are to come from the World Bank. The UNDP funding is targeted at building the capacity of the Fund and beneficiary communities through training and organizational development so that funds made available from other sources could be effectively utilized by the beneficiary communities on time. An understanding has been reached between UNDP, the WB, and the ESRDF for coordinated action to assist the ESRDF attain its objectives. Discussion also revolved around coordination in environment training and gender.




UNDP/World Bank Cooperation: Background, Mechanisms and Results


UNDP and WB collaboration in the Pacific sub-region has been limited mostly to cooperation and collaboration in information sharing/training and administrative support and briefings. This collaboration should in future extend to joint programming. Such a collaboration would ensure that the Bankís efforts in the area of economic reform are complemented by the UNDP strengths as well as its current mandate in support of Sustainable Human Development and Governance. This would enhance the impact of both upstream and downstream initiatives. The following are examples of the type of collaboration by both institutions at present:


1) Joint briefings on UNDP activities and WB missions held at the UNDP office in Suva, Fiji. These briefings take place during the visits of the WB team to Suva in preparation of the country and regional economic reports for the Pacific Island Countries (PICs) and the region.


2) Complementary reporting and presentation by the World Bank on the economic situation and by UNDP on Human Development issues during the bi-annual PIC/Partners meetings. There are meetings of Pacific Island Countries and donor organizations and other partners which are organized by the FORUM secretariat. At the last meeting in February 1995, for example, the WB presented economic reports on the countries while UNDP presented reports on the Human Development situation for PICs and UNDP initiatives in support of Human Development.


3) Collaboration on the Republic of Marshall Islands Public Sector Reform Programme: The WB in 1993-94 funded a consultancy for the RMI Government culminating in a Seminar and Workshop for key government officials in support of the governmentís Task Force on Public Sector reform. UNDP and the WB consultants met regularly to ensure complementarity and self-reinforcement of the UNDP/WB efforts in support of the RMI government. As a result, WB efforts were focused on diagnosis and preparation while the subsequent UNDP project in support of Public Sector Reform (MAS/93?001) has focused on the implementation of change within the RMI Public Sector. The UNDP project became more "locally owned" as a result of the WB input in project design. The results of this collaboration may be seen today in the reform process underway in the Marshall Island.


4) Collaboration on Training: UNDP, through the UNDP/IMF funded Regional Project in Fiscal and Monetary Management Reform and Statistical Improvement has collaborated on a number of occasions with the WB in providing technical support as well as resource personnel for training activities in financial as well as private and public sector management courses for appropriate personnel from the PICs. Such seminars have been organized by the EDI in cooperation with the Institute of Social and Administrative Studies of the University of the South Pacific. A specific example is the World Bank sponsored Seminar on Management and Public Enterprises to be held in Tonga, in October 1996, where the Budget Advisor of the EFMAR project will be a resource person.


5) Information Sharing: This occurs on a continuous basis, particularly between project personnel of the UNDP/IMF funded EFMAR project and the WB/International Finance Corporation managed offices of the Foreign Investment Advisory Services and the South Pacific Facility based in Sydney, Australia.




Background and Objectives of Collaboration


Guinea-Bissau is a Round Table country. It has been pursuing political and economic liberalization for over one decade, with the latter process being supported by World Bank-IMF Structural Adjustment Programs. In the past, UNDP and the Bank have collaborated in support of each otherís mandate. When political liberalization became "irreversible" with the legalization of political parties in 1991, UNDP came to the center stage as coordinator of donor assistance to the electoral process. The Bank recognized that role, which helped to re-inforce UNDPís image as a safe and convenient rallying point for donors to share ideas and resources for that process.


UNDP has financed a wide range of activities in pursuit of successive structural adjustment programs. These have included support to budget reform, national accounting system and administrative reform. In an attempt to improve further donor assistance in macro-economic management, UNDP has provided assistance in the formulation of a national program for capacity-building in macro-economic management, in collaboration with the Bank and other interested donors. The bulk of the program is financed by the World Bank. It covers Economic Planning, Statistics, Management and Coordination of Aid, Public Finance and Monetary and Credit Policy.


Past practices have shown impressive results in the Round Table Process. The RT held in Geneva in November 1994 illustrates the efficacy of UNDP/Bank collaboration in Guinea-Bissau. While the Conference was organized jointly by Government and UNDP the main Round Table document was the Policy Framework Paper (PFP) - 1994-1997, drawn-up, mainly with the assistance of the Bank. A Debt Strategy paper was prepared with UNDP assistance in cooperation with donor partners including the Bank. An abridged version of the paper, focusing on the volume and structure of the debt as well as on its impact on Guinea-Bissauís financing requirements for development activities was distributed widely among the donor partners, in preparation for the Round Table.


Prior to April 1995, when the Bank mission closed down in Bissau, UNDP and the Bank collaborated in a two-tier system. First, they operated as two distinctly separate members of the donor community in pursuit of their respective mandates. Second, they collaborated as members of the system of operational activities for development, extended to the Bank, for all practical purposes. Collaboration within this second tier took the form of exchange of information and consultations within the framework of meetings of UN Agency Heads.


Mechanisms and Institutional Arrangements for Collaboration


When the Bankís Mission folded in 1995, arrangements were made informally for the UNDP Country Office, and in particular the UNDP Resident Representative to undertake to provide support to on-going and planned Bank activities in Guinea-Bissau. It was understood that the UNDP office would assist the missions fielded by the Bank to Guinea-Bissau and such assistance would come in various forms, notably administrative and logistic support, coordination of mission and information dissemination. On its part, it was expected that various departments and officials of the Bank on Washington and Dakar would communicate information to the UNDP office on their respective planned missions, giving an outline of the objectives and activities of each mission and the type of support it would need from UNDP. The World Bank does have project implementation in Bissau.


Results Achieved


a) Improved donor consultation and exchange of information


Now that all development partners converge on UNDP for consultations on macro-economic development and management issues (as there is no longer a Bank representation since April 1995), formal and informal consultations and information exchange are continuous. This tendency was accentuated in the wake of the 1994 Round Table followed by the Paris Club meeting in March 1995, which paved the way for the first post-elections IMF-financed extended Structural Adjustment Facility (ESAF), a necessary adjunct to the Policy Framework Paper, which covers policy and strategic options for economic development for 1994-97. Since the Geneva Round Table, donor coordination of development efforts in Guinea-Bissau seems intimately linked with Bank missions, including those fielded to review and/or monitor the progress of the implementation of the ESAF/PFP. At least ten such meetings bringing together the entire donor community have been organized by the UNDP Resident Representative and hosted at the UNDP office since April 1995.


The donor community instituted a formal monthly meeting. They conferred the organization and conduct of the monthly meetings and any matters arising from them on the UNDP Resident Representative. Three of those meetings were on the new PFP 1996-98, Management of the Environment in Guinea-Bissau and the Agricultural Policy Letter. The visibility of UNDP has sharpened and its credibility as coordinating agency has been reinforced as a result of these developments.


b) Prospect for Joint UNDP/World Bank Programming


The 1994 Round Table paved the way for such prospects to emerge. The formulation of a National Program for Macro-economic Management, which is a framework for joint donor assistance in economic management agreed upon at the Round Table.


A UNDP Program Support Document Covering Statistics Development, Debt Management and Aid Coordination is also being finalized for UNDP financing. For the first time in the development cooperation history of this country, a clearly-defined national program providing for coherent and coordinated donor assistance including UNDPís and the Bankís will emerge.


The National Long-Term Perspective Studies (NLTPS) on Guinea-Bissau which was concluded after 18 months meets with the Bankís approval and endorsement. The Bankís Country Assistance Strategy, then under preparation as the NLTPS exercise drew to a close, was reviewed to take into account elements of the vision of Guinea-Bissau development till the year 2025 as outlined in the five strategic development options adopted by that exercise. This provides some scope for UNDP/Bank cooperation that could extend to joint programming and possibly co-financing in such areas as poverty alleviation and good governance, which are amongst the NLTPS strategic options.


Lessons Learnt


Arrangements for collaboration were not formalized when the Bankís Representative left Bissau. It is perhaps the absence of formal arrangements which sustain the efficacy of UNDP/WB collaboration. It has paved the way for clearing real or imagined impediments to putting Guinea-Bissauís development interests first. The two institutions, the UNDP Resident Representative and the Bankís officials concerned perceive themselves as instruments for advancing priority national development issues. By doing so, the risks associated with personality conflicts, fighting for turf and the limelight have been blunted. The Bankís Director of the Department for West Africa, the Country Team Coordinator for Guinea-Bissau and the Economist, Country Operations should be credited fully for the transparency and professionalism which have characterized collaboration since November 1994. There is an open line of communication between the UNDP country office and the Bank in Washington and Dakar, where the Bank has a representation.




UNDP/World Bank Collaboration: Background, Mechanisms and Results


With the re-establishment of the Constitutional Government in Haiti, UNDP took a leading role in the international assistance to be provided to that country. In October 1993, as a result of a concerted effort led by UNDP, the international community participated in a Joint Assessment in Haiti which was to define the nature and dimensions of the emergency facing the Government and the people of Haiti. The support to be provided for development activities was included in the "Emergency Economic Recovery Program" which pledged US $1.2 billion and received the full support of the donor community during the Contact Group meeting held in Paris in January 1995. The Inter-American Development Bank made the revision of the recovery program in January 1995, and the follow-up meeting to the Contact Group was held in May 1995. In 1994, the EERP has been the main framework adopted by the Government of Haiti.


The EERP was not the only instrument for channeling assistance to Haiti. In November 1994 the UN system coordinated the humanitarian aid together with the Organization of American States and the Government of Haiti, and developed an "Appeal" addressed to the international community for bridging humanitarian assistance and reconstruction programs (US $ 78 million for 6 months).




Background and Objectives of UNDP/World Bank Collaboration


The political climate and policy environment in India is presently conducive for collaboration between the two institutions. This is because there is widespread political consensus on major aspects of economic reforms, initiated in 1991. These reforms were part of the stabilization and structural adjustment lending programs agreed upon with the IMF and the Bank during that year. The political consensus which has resulted in the formation of a United Front Government with broad-based support, including the Congress which initiated the reforms program, reflects an intellectual convergence on the relationship between growth, human development, equity, and social justice.


In India, there has been some shift in philosophy of the Bank. This has led to some increase in lending for the social sectors, and makes it both possible and necessary to collaborate at the operational level of programs of the Bank and the UN System.


Mechanisms and Institutional Arrangements for Collaboration


UN Heads of Agencies' Inter Agency Meetings convened regularly by the UN Resident Coordinator, and UN Inter Agency Working Groups on different themes, are presently the main avenues of collaboration between the Bank and UNDP, apart from bilateral, interpersonal contacts between professional staff in both institutions. All sections in UNDP meet regularly with the World Bank Mission in India, and less frequently, with visiting World Bank staff in order to exchange information and views on particular issues, viz. in the areas of poverty reduction and environment. This exercise has proved valuable to both sides. However, so far, no concrete areas of joint programming have evolved even though a good number of areas offer themselves, such as public sector reform, primary education, poverty alleviation, environment including the Global Environment Facility.


Results Achieved


The UNDP/World Bank Water and Sanitation Program (Regional Water and Sanitation Group South Asia) and the Joint United Nations Program on HIV/AIDS (UNAIDS) are institutional partnerships worth mentioning. The former has moved forward without broader WB involvement, and the latter has started sluggishly, with minimal WB participation.


Basic Education: An Example of "best practice" of WB/UNDP/UN System interaction


An InterAgency Working Group on Basic Education, including Bank staff, was followed by a Task Force including the Government of India. This process resulted in the formulation of a UN System program support document for effective primary education.


The Bank is financing a large primary education program in India called the District Primary Education Program (DPEP). The UN System support for primary education will support the ongoing efforts undertaken by the Government of India towards the goal of making primary education more accessible and effective for primary school age children, both within and outside DPEP districts. DPEP and the UN System share common national priorities of serving illiterate and disadvantaged groups, focusing on the girl child, and enhancing the capacity for centralized planning and management. However, in focusing on the block rather than on the district as the unit of operation, UN System support is designed to identify and target marginalised and disadvantaged groups within DPEP districts. The opportunity of experimenting with program support outside DPEP districts is expected to be beneficial in eventual incorporation of innovations and cost-effective solutions into DPEP as it is expanded. Convergence between the Bank and the UN System in monitoring and evaluation activities is also built into the UN System program.


Lesson Learned


Experience in Pakistan, Botswana has shown that when a truly high quality product is offered, which coincides with the Bank's agenda, e.g. the Balanced Development Report in Pakistan in the context of their social sector involvement, receptivity by the Bank for cooperation will be immediate.


India Development Forum Meeting


The World Bank/Government of India have included in the agenda for this year's (1996) India Development Forum Meeting in Tokyo, a special topic "Investment in Infrastructure" to be discussed with donors and multinational corporations at that meeting. The UNDP country office in India has reacted by commissioning a consultancy on "The Human Dimension of Infrastructure Investments" and will submit this to the Forum.


On the occasion of the Tokyo meeting from 18 to 20 September 1996, the Resident Representative pointed out that UNDP would like to see the "Infrastructure Challenge" in India against the "Capacity Challenge: and on that basis be supportive in preparing for what India hopes will be a US$ 170 billion investment portfolio. Both the paper and comments were well received by IDF participants and resulted in a response by the Secretary reassuring the meeting that institutional strengthening and HRD were "not forgotten".


The suggestion was made by the RR for a holistic treatment of development, and that in addition to the World Bank prepared annual "Country Economic Memorandum" as the base for these fora meetings, there should be a "Country Social Memorandum" which the UN System, under UNDP leadership, could prepare. The Bank did not react to the statements except to the proposal that a Country Social Memorandum be prepared for future meetings by the UN System. The Bank thought it would prepare such a memorandum and would consult with the UN System in this regard. There is the feeling that those in the World Bank dealing with South Asia continue to give largely lip service to human development issues and that the overall approach of the Bank remains linked to macroeconomics and fiscal concerns. They do not seem to comprehend the interdependence of macroeconomics and macro human considerations. The WB and GOI delegation hardly ever include social sector representatives, there is a resulting mismatch with UN and an increasing number of bilateral delegations.





Background and Objectives of Collaboration


The Indonesia UNDP/WB best practice in collaboration was reported in the context of the project titled "Water Supply and Sanitation for the Poor in Asia/Pacific". The key objective of this program/project strategy is to shift focus away from Government top down approaches to decentralized, demand driven services that user communities want and are willing to pay for. It is considered that progress in the promotion of participatory approaches for sector development has been generally satisfactory (objective 1). Interest in the approach as an alternative to traditional top down approaches is clearly on the rise among policy makers, NGOs and community groups. The concepts are now included in a growing number of strategies and action plans adopted by Governments and are being applied in many of the World Bank funded investment projects.


An Evaluation of the UNDP/World Bank Water and Sanitation Program was conducted in 1995. It was undertaken in the context of the upcoming Global Water Partnership, recently launched by UNDP and the WB in the Stockholm Water Conference in August 1995. The Partnership will consolidate and build on existing UNDP/World Bank collaborative efforts, of which this Program is the largest and longest running. The Partnership is expected to begin full-scale operation in early 1997.


It is considered that the Program, with its field structure and staff and decentralized operations, provides an excellent model for use in planning the implementation of the Partnership.


Background of Project:


The project is a major component of the UNDP/World Bank Water and Sanitation Program. The primary function of the project is direct support to promote and support a process of change in countries' approach to sector development for the poor. The Project has the following focus areas: sustainable development of rural water supply and sanitation; urban sewage and sanitation; emphasis is placed on development of demand based community participation, systematic and structured learning and feedback of lessons learned.


The Water Supply and Sanitation (WSS) sector has been given considerable attention by the Government of Indonesia. Since the commencement of the first five year development plan (PELITA I), the provision of water and sanitation has been central to government development policy. Although physical progress was limited, there have been significant achievements in establishing future programs. The Community Water and Sanitation (CWSP) is a GOI/UNDP/WP project INS/88/005. It was conceived within the framework of the International Drinking Water Supply and Sanitation Decade and was designed to deal with the remaining needs and constraints and to serve as a catalyst to stimulate large scale implementation. Its fundamental premise was that the community based approach offers the best hope for long term, sustainable and effective improvement in the provision and use of water and sanitation facilities at village level. The project covered two provinces, East Java and Bali, and comprised 3 major components: Institution Building, Social Marketing and Sanitation Action Plan.


The long term objective was for the project to support acceleration of the pace of community water and sanitation sector development towards a condition in which local governments are capable of taking stock of the water and sanitation needs of the people in their jurisdiction, and of planning programs to provide for those needs, utilizing a range of technologies appropriate to each set of conditions; and in which public health and environmental conditions are greatly improved through reduction of communities' exposure to enteric and pathogenic infections, and environmental surveillance and monitoring.


Why this project is considered successful:


The CWSP approach proves to be consistently relevant to the GOI's current development policy for the sector. The community participation approach applied by CWSP has proved to be successful with regard to a) needs identification for water and sanitation facilities; b) technology options; and c) community contribution for constructing the facilities. It was also found that the approach is not only applicable in urban areas, but with very slight modifications, is also suitable for application in rural areas as demonstrated by its replication in a World Bank funded project in 6 provinces "Water Supply and Sanitation for Low Income Communities. The preparation of this project was funded by UNDP by integrating it into the CWSP.


The "Legal Issues Report" produced under the project, provided inputs to the GOI's REPELITA VI for the sector, particularly for the formulation of a better and more effective revolving fund system for water and sanitation. It also contained recommendations on the legal framework for central and local government to better enabling water and sanitation development in their respective jurisdictions, through enforcement of regulations and empowerment of local civil service investigators. Although these recommendations have not yet been legally adopted, local authorities have applied the recommendations in their Water Supply and Sanitation programs.


The Sanitation Action Plan (SAP) component of the project has been replicated in the form of a community based approach manual on how to involve the community in planning, implementing, organizing and managing water and sanitation facilities. The manual is very simple and can be easily adjusted to local conditions. This manual, with slight modifications, has been applied in a World Bank funded project in 6 provinces (WSSPLIC). The second component was a revolving fund mechanism for human waste sanitation. This included a manual on how to revolve a fund for on site sanitation using Government or non Government funding. This mechanism was tested in the East Java/Bali Urban Development Project, and will be fully applied in those project areas as well as in others outside of it.




The World Bank has no resident office in Iran and depends for much of the information on substantive issues as well as logistics on the UNDP office. There has been no consideration for a loan request since 1994, and UNDP is seen as a neutral go between that can help both sides to maintain the contacts. The areas of cooperation/consultation with the World Bank include governance, environment, gender issues, population, and disaster mitigation.




1. The Bank assisted UNDP and the Government in preparing a National Strategy for Sustainable Development and Environmental Protection through technical comments on Terms of Reference and technical reports prepared by national expert teams financed under CAP 21. This assistance was provided free of charge.


2. Agreement was reached with the Bank that all GEF projects in Iran will be handled by UNDP but that UNDP will invite the Bank in project preparation and execution if and when necessary. This agreement will establish UNDP as a lead institution for environment in Iran.


3. The Bank has agreed to provide UNDP with technical comments and CVs of international experts for the UNDP program on Reform on the PBO. This service will be provided free of charge.


The Resident Representative reports a close cooperation with the World Bank on a number of substantive issues. World Bank missions call on the office for advice and support. The Resident Coordinator is consulted on all policy issues. UNDP is involving the Bank for technical support is the programs for reform of PBO and the environment. UNDP assists in implementing some aspects of WB loans. On subjects of mutual interest like statistics and gender issues, there are joint meetings between World Bank missions and other UN agencies.




The relationship between the WB (IMF) and UNDP/UN is considered by the Resident Coordinator to be an outstanding one. This cooperation is due in part to the positive attitude and close relationship which was established as common interests were identified by both institutions. This was done in the context of the establishment of the new UNDP and World Bank offices and programs in 1992-1993. Professional, personal and institutional relationships became strong.


Apart from strong interpersonal ties formerly established between the representatives of the two institutions, there is a good institutional relationship which extends to the UN Development System.


Mechanisms for Collaboration and Results Achieved


1. The WB Representative and the UN Resident Coordinator made a joint two-day field visit to a depressed "company town" which is a typical focal point for Kazakstan's reforms during the economic transition and its efforts to achieve human-centered development and sustainable livelihoods. Since there is common interests in this strategic economic and social challenge, the occasion was used to reinforce mutual institutional interests and coordinate potential follow-up. There are some related programs that benefit from common assessments and visions for future action. UNDP provides inputs to diagnose and prescribe "model" actions in this company town (including SME and industrial restructuring, but also with strong implications for sustainable livelihoods, social safety net and institutional capacity issues). The World Bank provides some advisors to national financial institutions which are addressing company towns. WB has also given a loan for restructuring and financing social services during the transition of company towns. As further indication of collaboration, the Bank Rep will attend the next Steering Committee meeting of our project.


2. UN/UNDP and the BWI are collaborating to launch a comprehensive Poverty Eradication initiative. The strategy and proposal that was agreed on in consultation with Agency colleagues are fully endorsed by the Bank and Fund. Plans are being brought forward to higher authorities for finalisation. Both institutions will have joint advisory and implementation arrangements. Activities are expected to include support to Government's efforts to prepare and formulate a national poverty action plan, establish indicators and some targets, and to include joint activities on International Day for the Eradication of Poverty. In consultation and coordination with the WB and IMF, the UN Development system expects to raise these issues in the course of the CG meeting which the WB is organizing.


3. Aral Sea collaboration is another example of close cooperation. The WB and UNDP/UN share information and strategies about support to the national and regional programs for the Aral Sea and coordinate Bank and UNDP (UN) inputs. At the country level, there are similar interests to see that sustainable livelihood and humanitarian actions are effective. The Bank has channeled a tiny cost-sharing amount ($45,000) received from a bilateral donor to UNDP for small-enterprise development. Both institutions share a common voice in advocacy and coordinated strategy. The Bank Rep has agreed to a UNDP proposal that it would be timely and useful to help government develop a three-part medium term action plan: for humanitarian assistance, sustainable livelihoods, and environmental protection and regeneration in the down-stream basin area. A Bank expert will be made available to a UNDP-led team, along with donors who have expressed enthusiasm for such an approach for a next generation of SHD in the downstream Aral area.


4. Joint efforts with the BWI and UN system have recently been launched to cut administrative costs, share services, seek economies of scale (discounts) in administrative and project costs.


There is coordination in advocacy, program collaboration (Aral Sea, Economic Management, Aid Coordination). There is close, frequent consultations which raise impact, common perspectives and advocacy with Government and donors, and reinforce the efficiency of the new small country offices.




UNDP/World Bank Collaboration: Background, Mechanisms and Results


UNDP/World Bank close collaboration has grown over the past five years into a strong partnership in many aspects of Kenya's development challenges through consultations on specific issues and policy dialogue in both economic and non-economic areas. There has been program collaboration, including the multi-donor funded drought recovery and rehabilitation program, the formulation of UNDP program support documents and implementation (World Bank parallel financing in financial and economic management, governance, civil service reform) and the Social Dimensions of Development initiative.


Close operational partnerships have been realized through consultations, shared responsibility, lead-agency roles in areas of respective comparative advantages and mutually reinforcing supportive relations.


Aid Coordination and Capacity Building: monthly donor meetings are co-chaired by UNDP and the World Bank on an alternating basis. This arrangement was established in order to broaden aid coordination beyond the predominance of the World Bank/IMF-led Consultative Group meetings that existed before 1992. The system has since evolved into the current aid coordination framework which consists of an umbrella Kenya Coordination Group and eleven Program Coordination Groups. Support to the Government for the Consultative Group process and resource mobilization will become part of the emerging GOK/donor coordination system, with aid coordination and national capacity building integrated into the functioning of the Program Coordination and Working Groups.




Background and Objectives of Collaboration: Social Welfare Reform in Latvia


During the last three years the Government has moved progressively to transform the previous social welfare policy and to introduce improvements in the legislation and administration relating to the collection and payment of social security and pension contributions. The Parliament approved at the end of 1995 several major pieces of legislation which provide the framework for the introduction of new social insurance and protection policies. The new legislation will take effect over the next 12-14 months, with some laws (including pension reform) effective from January 1996.


Reform of the social welfare sector in Latvia will not only require the implementation of completely new policies and programs, but also substantial upgrading of many institutions and facilities involved in the implementation of Government welfare reform programs and social insurance funds. To this end, the Government has decided to take a World Bank loan to help provide the Ministry of Welfare and other sectoral institutions with the necessary financial resources and institutional capabilities needed to implement the welfare reform.


Mechanisms and Institutional Arrangements for Collaboration


The World Bank Loan Project/ Collaboration with UNDP




Regular meetings/discussions have been held with the World Bank throughout the previous year including meetings with World Bank missions regarding on-going and planned UNDP assistance to the Ministry of Welfare in relation to the Project Management Unit (component 5) of the World Bank loan. A representative from UNDP Latvia participated actively in a recent (May 1996) comprehensive four-day World Bank Welfare Project Workshop which aimed at identifying the scope of each of the components of the Welfare project (using a Logical Framework approach).


Through participation in the work group concerning the Project Management Unit, UNDP has worked closely together with the Ministry of Welfare and various World Bank consultants to establish the purpose, outputs and activities of the Project Management Unit. UNDP also used this opportunity to present to the participants of the work group the kind of assistance which UNDP can provide in support of a project implementation unit by using the organizationís Latin American experience as an example to follow regarding model UNDP-World Bank cooperation.


The discussions with the Ministry of Welfare and the World Bank has made it clear that UNDP assistance in the field of Project Management is much needed and will be essential to a successful loan implementation process. UNDP Latvia has received an official request from the Ministry of Welfare to support the loan preparation and management process.


The main objective of the preparatory assistance project is to provide support to the Ministry in areas such as establishing a training program for PMU staff, hiring PMU staff on UNDP service contracts, support to drafting loan implementation plan, support to draft application for Project Preparation Facility. The preparatory assistance phase will also be used for the preparation of a proposed full scale UNDP support project. The project could potentially be financed from a US$ 2 million SIDA/World Bank Trust Fund which has been established to finance much of the technical assistance input to the loan preparation phase as well as to cover local procurement and local consultancy input. While at the present stage of project development it remains to be decided how exactly UNDP support could be arranged to suit the needs of the government. It is expected that a decision will be made during the World Bank Appraisal Mission in December 1996.




UNDP/World Bank Collaboration: Background, Mechanisms and Results


Working relationships between UNDP and the BWI in Lebanon have been very positive, with collaboration focused mainly in the area of Public Administrative Reform. The two project briefs described below highlight the nature of the relationship.


LEB/92/013 - Technical Cooperation Unit


Since 1990, the Government of Lebanon has embarked on a serious effort to reform its public administration through a comprehensive US $106 million program entitled National Administration Rehabilitation Program (NARP). UNDP has been most directly involved in supporting the NARP through the establishment, within the Office of the Minister of State for Administrative reform of two units: The Technical Cooperation Unit (TCU) and the Institutional Development Unit (IDU). The establishment and support to TCU has been provided through UNDP under LEB/92/013. Its original mandate was to coordinate, manage and monitor the implementation of all Technical Cooperation components of NARP. In October 1995 the Government of Lebanon approved a large Administration Rehabilitation Project with the World Bank. Following the signature of the Agreement, the mandate of the TCU has been expanded to include an additional function of supporting the Government in implementing TC programs which fall under NARP, including the implementation of the US $ 29million Administrative Rehabilitation Project, which is financed by the World Bank (US $20m.); the Government (US$ 8m); UNDP (US $1m.) and CIDA (US $ 500,000). Based on the revision of TCUís mandate, LEB/92/013 has been substantially revised, raising its budget from US $698,000 to US $ 4.55m (US $3.341m from Government - US$ 500,000 of this to be financed from WB Loan Proceeds); and US $1.208 from UNDP.


LEB/92/017 - Fiscal Reform and Administration


This project was approved in 1993 with the objective of supporting the rehabilitation of the capacity of the Ministry of Finance to perform its fiscal policy role and to effectively collect, manage, administer and account for the public finances of the country. The IMF, UNOPS, and UNCTAD have been designated as implementation agents since the projectís inception. In July 1994, the World Bank concluded negotiations with the Government regarding a program of assistance to the Ministry of Finance and agreed to use the UNDP project as a vehicle for this assistance. This translated into a revision of UNDPís project which now includes three main components: automation of customs, taxation reform, and automation of land registration. The revised project was signed on December 1994, raising its total budget from US $ 658,000 to US $ 3.693m. The budget increase was made possible through increasing the Governmentís contribution from US $0 to US $ 2.144m and UNDPís contribution from US $658,000 to US $ 1.549m. Governmentís contribution is provided for fully from a World Bank Loan.




UNDP/World Bank Collaboration: Background and Mechanisms


The Round Table Process: The recent Memorandum of Understanding between UNDP and the World Bank recognizes and endorses the collaboration, particularly in development activities. It highlights and delineates the respective responsibilities of the institutions in resource mobilizations such as the Round Table Process and the Consultative Group meetings.


Lesothoís resource mobilization strategy is designed within the Round Table framework and consequently UNDP is a leading coordinating agency. During the preparatory process for Lesothoís Seventh Round Table Conference, in 1995, UNDP made a special effort to have the World Bank participate in the preparation of the main documentation for the conference. During the Conference, the World Bank was invited to make a statement on the macro-economic performance of Lesotho.


As a follow-up to the Seventh Round Table Conference, the Government of Lesotho planned a series of sectoral/thematic consultations covering Agriculture, Environment, Health, Population and Tourism. During the preparations for the consultations, UNDP solicited the World Bankís support, which resulted in $416,000 from the Japanese Trust Fund Account being made available. This was used for specific preparation activities for Sectoral Round Table Conference such as consultancies, workshops and seminars relating to the agricultural sector development program. Draft documents for the Sectoral RT Consultations were circulated to some key donors, including the Bank, for comments.


Results Achieved


The Bankís valuable and substantive inputs to the documents presented at the Geneva RT Conference and at the Sectoral RT Consultations held in Maseru contributed to their high quality. Resources provided by the Bank enabled the Government, particularly the Ministry of Agriculture, to undertake studies that were consolidated into the final Sectoral Round Table Consultations Agricultural document. The national stakeholdersí participation was encouraged and strengthened with the help of a series of workshops/seminars. Because of their involvement in the exercise, the World Bank was better placed to persuade other major donors in the sector to sign a Memorandum of Understanding pledging their continued support in the Agricultural Sector.




Background and Objectives of the Collaboration


The Lesotho Highlands Water Project (LHWP) is one of the largest projects in Africa in terms of the area to be covered, the resettlement required, and the construction work needed. The projectís impact on the environment became a national concern as Phase IA did not include an Environmental Impact Assessment (EIA). This led local people and NGOs to register several environmental concerns, and to address these, the Government decided to undertake a proper EIA before the start of Phase IB of the project.


Mechanisms and Institutional Arrangements for Collaboration


The World Bank is the lead financier of the LHWP and under the LHWP credit, also funded background studies for the preparation of EIA. To ensure transparency, a non-World Bank team of consultants funded by UNDP/UNESCO was identified to review the EIA. In consultation with the Bank, UNDP and UNESCO will support the National Environment Secretariat to undertake an internal review of the environmental aspects of the LHWP before the start of the projectís Phase IB. UNDP/UNESCO will help Government counterpart gain the skills and knowledge required to undertake environmental evaluations and monitor environment projects.


Results Achieved


There is continuous exchange of information between the World Bank, the UNDP/UNESCO consultants and other concerned agencies. The external review by this group will ensure transparency and accountability, and foster public participation and international involvement. Phase IB EIA is expected to resolve the conflict between the World Bank and local communities and ease the mistrust with which the Bank is viewed.





UNDP/World Bank Collaboration: Background, Mechanisms and Results


MAL/94/004: Malaysia Industrial Training and Productivity Study


The project forms part of the World Bank cross-country research project on Enterprise Training Strategies (ETS) and productivity to develop cross-nationally comparable data on enterprise training and technology, to investigate the determinants and productivity outcomes of alternative sources of funding and to drive conclusions useful to policymakers responsible for human resource development. Due to the modest ETS survey budget from the World Bank for Malaysia which was adequate only for a small sample of establishments to be surveyed, UNDP agreed to co-fund a larger survey, upon request from the Malaysian Government.


The project provided a framework for developing a more internally generated, demand-driven policy approach to human development, labor markets, industry, and industrial technology issues as called for in the Malaysian Industrial Master Plan. The project collected key data on industrial skills and training, technology, industrial R&D, and productivity, and through a program of in-depth research, developed policy recommendations on enhancing industrial skill development and productivity in the manufacturing sector. The project is in the final stage of completion.


The total cost of the project is US $315,000 comprising cost-sharing of US $115,000 for one year. The World Bank executed the project, while the implementing agency for the project is the Economic Planning Unit. Although the policy recommendations from this study were not fully available for inclusion in the Seventh Malaysia Plan (1996-2000), key information and recommendations generated through the project are highlighted in the Plan.


MAL/94/006 - Review of Industrial Technology Policy and R&D Strategy for Vision 2020


The total cost of this project is US $465,000, funded through UNDP funds. The project is for one year, and executed by the World Bank. The implementing agency is the Ministry of Science, Technology and the Environment. This study reviewed the strengths and weaknesses of Malaysiaís industrial structure and pointed to the need for technological deepening to sustain growth into the twenty-first century. It also developed a framework for assessing private firmís demand for technological capabilities. The study proposed a comprehensive strategy for technological upgrading which consists of : (1) streamlining the policy-making role of the Government to strengthen the enabling environment; (2) putting in place rational policies for stimulating firmsí technology demand; (3) setting up public/private institutions that support firmsí initiatives for technological upgrading and (4) restructuring human resource development to complement the other three elements of the strategy. Like the previous project, the policy recommendations from this study were not all ready in time for inclusion in the Seventh Malaysia Plan. The key findings and recommendations generated through the project are well reflected in the Plan.


There are however, other aspects of UNDP/WB collaboration in Malaysia that could be mentioned. Apart from the two projects described above, UNDP is in the process of initiating two more projects for the Malaysia Government. These are:


(I) Skills Need Study and Labor Market Model


(II) Developing Technological Capabilities in Malaysian Industry


These projects are to be co-funded by UNDP and the Malaysian Government, and will be nationally executed. The World Bank will be subcontracted as consultants to implement the project activities.


Over recent years, the World Bank has produced a number of reports on Malaysia through their regular program, which have been influential in shaping government policy. However, the government has decided it does not need further loans from the Bank. The Bank on its part will no longer make funds available for such reports, or for other development support. Any further World Bank program activities in Malaysia will need to be paid for fully by Malaysia or another source. The Bank appears not to want to work as an executing agency for UNDP, since the normal executing arrangement implies some "subsidy" in the form of staff time being provided.


The Government remains interested in using Bank services, and hence the two proposed project are to be sub-contracted to the Bank, acting as a consulting firm. UNDP will cover the costs of all consultants for the project, and the Government through project cost-sharing is paying the cost of World Bank staff member input to the projects.


Both the Bank and the Government see value in associating UNDP with Bank activities in Malaysia. Future UNDP/WB relations in Malaysia is likely to be unique, but may also serve as a model for the way both organizations can work together to access outside expertise and advice for those developing countries which are rapidly growing and increasingly wealthy.




Background and Objectives of Collaboration


Mali is undertaking the formulation of a series of projects on poverty reduction, support to the social sectors (health and education), the operationalisation of SHD/ poverty alleviation with the support of several donors, among them the WB and UNDP. The WB and UNDP have submitted to the Government a joint proposal for bringing together a number of committees, and outlined their modality and functioning. The initiative is called "Institutional Mechanisms for Sustainable Human Development/poverty alleviation". The WB and UNDP aim to help Government to more efficiently conduct the process of formulation and coordination of strategies and programs relating to SHD, and the reduction of poverty. The objectives contained in the proposals of the two institutions are:


1) to integrate the structures and ideas contained in a number of initiatives supported by different organizations and agencies.


2) to put together a framework for the coordination of the other development partners such as those in bilateral cooperation, civil society, NGOs, Chambers of Commerce.


Mechanisms and Institutional Arrangements for Collaboration


The institutional framework for this initiative comprises four supervisory and implementation committees:


1) The Orientation Committee


This committee has a supervisory role, charged with orienting and directing the tasks of SHD centered on poverty reduction. It is a high level policy unit presided by the Head of Government. Representatives of the administration, members of various government institutions, representatives of civil society, and development partners are all members of this committee.


The committee is responsible for the coordination and smooth functioning of the various committees, to direct the activities proposed by the follow-up committee, and to validate the approaches and strategies developed for beginning the tasks of SHD/poverty alleviation.


2) The Follow-up Committee


The Follow-up Committee liaises between the Orientation Committee and the Executive Secretariat. It is a somewhat more technical committee, responsible for:


a) proposing strategies relevant to SHD and poverty alleviation

b) developing mechanisms and tools for coordination and ensuring the smooth functioning of the activities of the programs of the various agencies

c) evaluating the impact of policies and actions on SHD/poverty reduction

d) coordinating the mobilization of financial, material and intellectual resources necessary for putting together the plan of action for SHD

e) submitting to the orientation committee, the propositions and suggestions for SHD.


The members of this committee are the same as those of the orientation committee, except for those representatives from technical institutions. The committee is presided over by the Commissioner for Planning. The Follow-up committee will function on the basis of thematic groups and activities, the terms of reference and duration for which will be fixed by the committee.


3) The Executive Secretariat


The Executive Secretariat is responsible for facilitating and implementing the program adopted by the Follow-up committee. It organizes meetings of the orientation and follow-up committees, and liaises between members of the committees. The executive secretariat prepares the themes for discussion by the follow-up committee, and activates the work of the thematic groups.


4) The SHD Forum


This is a light technical body attached to the Planning Secretariat. It is responsible for analyzing and disseminating existing information with a view to improving the definition, implementing and evaluating the policies, programs and projects centered on poverty reduction. It will draw up the "annual Human Development Report" which will be submitted to the committees for orientation and follow-up.

The main tasks required of this oversight unit are:


a. To synthesize existing information (quantitative and qualitative) relating to the conditions of life for the population

b. To produce indicators relative to poverty and human development

c. To conduct complementary analyses of the determinants of poverty and institutional mechanisms

d. To transcribe the analyses into operational terms in order to facilitate decision-making


5. To disseminate the results and to publish reports on specific subjects.


Arrangements between the Bank and UNDP for this institutional body to function are:


- both institutions have accepted to finance the Forum for SHD/ poverty reduction for an amount totaling US $ 785,826 between 1996 and 1998


- the two institutions will make available to the Forum and the Government, the technical competence and information which they will need to ensure the scientific quality of the work of the Forum. Following a mid-term evaluation, they will define the modalities and continuation of the institutional unit.


Results Achieved


The initiative has been approved by the Government. The two institutions, in collaboration with the Government have elaborated the document concerning the basis for the Forum. This concerted approach by the two institutions will allow for a unified methodology for formulating a strategy for SHD/poverty reduction.




Background to UNDP/World Bank Collaboration


Mauritania has the Consultative Group meetings as its aid and donor coordination mechanism. The World Bank plays an important role in this process. UNDP continues to be a valuable partner to Government in institutional support, the development of human resources, and poverty reduction which complements the 1985 Adjustment Program undertaken by the Government, with leadership from the World Bank and other development partners. World Bank/UNDP collaboration serves to strengthen policy dialogue and ensure complementary in support of national priorities. Collaboration between the two institutions is recent. The relationship can be described as good and mutually reinforcing.


Mechanisms and Institutional Arrangements for Collaboration


Aid coordination is one of the areas where agreements for cooperation have been identified, and formalized. However, actual coordination at the field level depends strongly on the relations between the World Bank Representative and the UNDP Resident Representative/ Coordinator. The regular contact between the two has resulted in exchanges of information and contributed to a strengthening of collaboration between the two institutions.


Results Obtained

Several initiatives have emerged from the World Bank/UNDP collaboration, the most important being:


1. Review of Public Expenditure: Both institutions have collaborated in review exercises between 1990 and 1995. UNDP participated actively in this task which was led by the World Bank. UNDP financed two national consultants to undertake studies in rural development, education, and health sectors. The objective of the 1995 exercise was to enable UNDP to prepare programs for capacity strengthening and to direct general policy discussions towards Sustainable Human Development.


2. Preparation for the Consultative Group: The May 1994 Consultative Group meeting for Mauritania provided an occasion to reinforce the collaboration through information exchange on the items for discussion at the meeting. UNDP undertook to coordinate the drafting of a statement on institutional development in direct consultation with the World Bank, and other partners. The two institutions have continued an exchange of views on the content of the ensuing document, which is based on the recommendations made at the CG meeting, which are followed up periodically by the Government with WB assistance. In its contribution to the formulation of this document, UNDP has coordinated the various elements of support by the field agencies of the UN system, which are presented by the Resident Coordinator.


3. Country Strategy Note: In the preparation of the Country Strategy Note by the Government, with the assistance of the UN system, the UNDP Resident Coordinator involves directly the World Bank representative in all aspects of the process, which enables the Bank to participate actively in this exercise.


4. Program for Economic Management and Capacity Building: UNDP continues to support the strengthening of national capacity in the Economic Management program initiated by the Government in May 1996 with assistance from the World Bank. This participation takes the form of policy dialogue (restructuring the functions of the Ministry of Planning), in preparation for the actions to be initiated by UNDP in support of the National Program.


5. The UN Special Initiative for Africa: This document was officially presented to the authorities by the Resident Coordinator and the World Bank Resident Representative. The two institutions discussed the preparation of the implementation of the country recommendations, and in particular those sectors/themes to be given priority.


Results Achieved


The World Bank has expanded its areas of intervention in Mauritania to include those sectors that have been of interest to UNDP: social sectors, environment, NGOs, poverty reduction. The World Bank has committed financial resources to these areas. Given the importance of these financial resources to issues of common interest to UNDP and the World Bank, there is the risk that UNDP initiatives can unwittingly be overtaken by the World Bank. UNDP may want to retain its catalytic and strategic roles in programs, under these circumstances.


On the whole, collaboration between the two institutions is good and has grown over the years. The agreements for cooperation on specific aspects are necessary, but the regular contact and information exchange have produced good results in this respect. This collaboration is to be encouraged, as it provides a strong foundation for future collaboration.




Background and Objectives of Collaboration


The World Bank has played an important role in external financing in Morocco for social programs. Over the period 1992-94, Morocco has received an annual average of about US $ 290 million for the support of development projects in the areas of health, education, agriculture, water and sanitation. UNDP has assisted the Government in the preliminary activities necessary for the formulation of the Strategy for Social Development (SDS), such as data bases, studies, analyses. In the context of UNDP activities in sensitization in Sustainable Human Development, UNDP is in direct collaboration with the World Bank, a partnership which is particularly strong in the area of social development. With the technical assistance of the DDSMS/UN, and in cooperation with the World Bank, UNDP has formulated for the Government a practical methodology of follow-up and evaluation consequent to the implementation of the SDS, which was chosen as the instrument for accomplishing the tasks set out in the Social Summit.


In this context, Morocco, in collaboration with UNDP has formulated a "National Program for Poverty Reduction", which covers four of the least-privileged rural provinces. This program will be integrated in the future "National Development Plan", with special attention paid to the most impoverished communities. The Government, in cooperation with UNDP and the WB, has adopted a Strategy for Social Development which centers around the following: a) to increase access of marginalized people to basic social services; b) increasing employment and income opportunities for this group; c) strengthening programs of assistance and social protection for these vulnerable groups, and increasing the resources available to them, and the efficient management of safety nets.


This strategy is carried out under successive priority programs, the first of which contains the following principal components: a) basic literacy; b) basic health care; c) employment through the "Program for National Promotion" ( a program for labor-intensive work) and d) a post-evaluation. This strategy is expected to cover five years, for a financial sum of US $260 million, of which US$ 150 is to be financed by the WB, budgeted for the fiscal 1996-97. It involves 13 provinces considered the most impoverished.


For the next five years, the first program " Barnamaj Al Aoulaouiyat Al Ijtimaiya", (BAJI) constitutes for UNDP in Rabat an excellent opportunity for collaboration and joint work. The program "poverty reduction" supported by UNDP will see its impact strengthened in the 13 provinces under BAJI as basic infrastructure will be guaranteed in the WB loan agreement.


The program will enable national efforts in human development and poverty reduction to be integrated and synchronized. It will assist in evaluating the progress made in this area, in national, regional and international plans. There is a great willingness to put into effect the recommendations made during the World Summit on Social Development. All the activities envisaged in the BAJI program will contribute to the holistic vision of the strategies, objectives and programs for action in the next Economic and Social Development Plan.


This opportunity constitutes a good point of entry for UNDP to be a major partner with the WB where partnership will be strengthened in the social aspects of development. The ultimate objective of the WB is to promote the principles and elements of SHD and to see that the Strategy for Social Development is effective, particularly that of BAJI.


Mechanisms and Institutional Arrangements


Project : "Joint WB/UNDP coordination in assistance for development 1989-1992". The realization of this project, which consisted of co-financing a full-time consultant to UNDP Rabat, has strengthened effective coordination between the two institutions. In fact, the exchange of information between the two has improved and has avoided duplication of development efforts.


Within the framework of projects supported by UNDP during the Fifth Program of Cooperation Morocco/UNDP, the WB cooperated in the project "Inquiry into the standard of living of households" and "the study of sources of vulnerability". In the project "methodology for follow-up/evaluation of SDS", the team from the Division for human resources of the North Africa Department of the WB, was directly involved, not only in the formulation of the project, but also in a seminar during which it made an important contribution.


The Government, in conjunction with the WB and UNDP, and in consideration of the objectives of the program "poverty reduction" and also to ensure the strongest coherence and greatest impact of these different actions on one hand, and the fact that these two programs are managed by the same department on the other, has estimated that the follow-up activities to BAJI be integrated with a Program of "poverty reduction". In this context, the funds made available to the Government by the Bank to finance follow-up activities will be managed by UNDP.


Results Obtained


The statistical analysis results obtained by the projects co-financed by UNDP, such as "The Study of the sources of vulnerability, and of safety nets", and " The Inquiry into the household standard of living, have constituted a useful tool for synthesis and analysis by the Government at an important time in its planning history. The results of these different projects have succeeded in positioning upstream, the process of reflection which has been led by the Government in order to conceive and make relevant, on the basis of an integrated multisectoral approach, the Strategy for Social Development, to benefit the rural and peri-urban populations, and the most vulnerable social groups.


1. " Study of the measure of household living standards". This project has for objective, to supply the planners and decision-makers in different ministerial departments, the data necessary for them to draw up social programs aimed at improving the standard of living of the population. This data base, which reports on the conditions of life of the Moroccan population, will assist the government authorities in formulating social policies relevant to the basic needs of the population and to evaluate the impact of the negative social consequences arising from the implementation of the Structural Adjustment Program, on vulnerable groups. The project has strengthened national capacity to identify and implement studies on the standard of living, and to produce when necessary, the measurement statistics necessary for analyzing the standards of living in Morocco.


2. "Study of the sources of vulnerability and safety nets for the dependent population". The project has had two objectives: a) to evaluate the social impact of the structural adjustment policy, to explore and identify sources of vulnerability which confront dependent populations and the safety nets used to help them to overcome them; b) to make available to Government the basic information necessary to formulate a policy of support for impoverished populations, within the framework of the Strategy for Social Development. The results of this study will allow Government to better target programs of social action during negotiations with the World Bank.




UNDP/World Bank Collaboration: Background, Mechanisms and Results


Since 1993, UNDP in Myanmar has been mandated by the Governing Council and Executive Board Decisions to give humanitarian assistance in the areas of food security, health, education and training, and environmental regeneration. The approach was to be "down-stream" and participatory, with activities targeted at the grass-roots level. UNDP does not therefore involve itself in assistance for Government policy formulation and national programs. The World Bank and IMF sends low-level missions for general economic surveillance. Thus, UNDP-BWI collaboration in Myanmar is extremely limited at present. The BWIs have suspended all new activities since 1988. Before 1993, both the World Bank and the IMF executed UNDP-funded projects , and there was more active collaboration in the implementation of sector-specific projects. Then too, these institutions were engaged in policy dialogue with the Government.


No Round Tables of Consultative Group Meetings were proposed or held for Myanmar in the recent past, either by the BWI or the UNDP. In the absence of most multilateral, bilateral and NGO donors, UNDP and other UN organizations play a critical role in addressing the humanitarian needs of the poor and grass-roots members.




Background and Mechanism for Collaboration


The joint efforts of the WB and UNDP to have more effective donor coordination at the sectional level have resulted in the formation of "Existing/Proposed Sectional Coordination Groups in Nepal".


A general meeting of the Nepal Donorís Group is held once every two months, and is co-chaired by the World Bank and UNDP. A WB/UNDP letter-head is used to invite participants to these meetings. The sectors/sub-sectors include: Agriculture, Good Governance, Education, Environment, Industry, Trade/Privatization, Forestry, Health and Population, Power, Transport, Women in Development/Gender and Development, Urban Development.





Background and Objectives of Collaboration


The Paraguay country office has provided assistance to the Government in the execution of several WB-financed project. These projects have been financed either through loans or trust funds. To date, the following projects financed by the WB have been completed;


- PAR/90/007 "Institutional Reform of the Central Government"

- PAR/91/005 "Regional Development of Alto Parana-Itapua Norte"

- PAR/91/011 "Engineering Studies for the First Transportation Project"

- PAR/91/014 "Strengthening of the Ministry of Public Works and Communications"

- PAR/92/012 "Rehabilitation of Areas affected by Flooding"


On-going projects with WB financing in which UNDP/Paraguay is providing support are:



On several occasions, the WB representatives here have informally stated that the reason for collaborating with UNDP is the institutionís promptness and transparency in the management of financial resources. In most cases, and mainly regarding projects financed by loans, UNDPís collaboration has been sought by the Government after the Loan Agreement has been signed, or once project implementation has begun. Two cases in particular highlight UNDPís participation in WB projects from the start-up.


1. Loan Agreement 3708-PA which finances the "Natural Resources Project" reads in its Section 3.14.


2. Grant Agreement No. 22505 between the World Bank and the Government of Paraguay to implement the Sustainable Rural Investment Project, reads in its Section 3.04 "The Recipient shall enter into an agreement (the Management Agreement) with UNDP, in order to assist the Recipient under terms and conditions satisfactory to the Bank, in the administration of consultantsí contracts and procurement of goods, and workshops to be carried out under the Project".


Mechanisms and Institutional Arrangements for Collaboration


The Country Office together with the Government counterpart prepares the project document (UNDP format) plus the WB standard annexes. The Government requests the approval of the project document. Once approved, the Government requests disbursement of funds, which are deposited by the WB in UNDPís New York account. Once confirmation of the transfer of funds is received by the Government, and UNDP in New York, implementation begins. All payments related to consultant services, training, and procurements must be previously approved by the WB, according to the procedures and responsibilities established in the standard annexes.


Results Achieved


Among the completed projects mentioned above, one that is noteworthy is Project PAR/91/005 "Regional Development of Alto Parana - Itapua Norte, financed with a Japanese grant. The projectís objective was to design a program to implement an environmentally and economically sound development model integrating production, storage, agro-industry and marketing, and oriented toward the small and medium sized farmers.


The final result was the formulation of the "Natural Resources Management Project" financed through WB Loan Agreement 3708-PA, for a total amount of US$ 50million. The Consultant and Training Component of the Loan Agreement, for a total amount of US$ 11,863,100 is managed by UNDP through Project PAR/94/001 "Natural Resources Management".


A second example, among on-going projects, is Project PAR/94/007 " Sustainable Rural Investment Program", funded by a Japanese grant TF22505. This on-going project will be completed by March 1997 and its final result will be the Sustainable Rural Investment Program, which funding, for a total amount of approximately US$100,000,000 will be co-financed by the WB and counterpart funds. Under these two, among other WB-financed projects, UNDP has managed consultant services contracts; subcontracts; training; and procurement of goods.




UNDP/World Bank Collaboration: Background, Mechanisms and Results


In Peru UNDP has played the role of mobilizing external technical and financial resources helping the agricultural sector to harmonize its efforts in an integrated manner towards a sectional program. UNDP support to the agricultural sector is a good example of a successful collaboration with the Government as it resulted in the preparation of loan requests to the IDB and WB for approximately US $300 million. At present, new negotiations are under way for additional sector loans.


Peru had been declared "ineligible" for IF credits, and the country needed flexible, reliable and rapid mechanisms to carry out negotiations with international financial institutions - Ifs. Due to the State Reform measures in progress, there was a heavy reduction in the number of civil servants. UNDP was requested to offer support in administration and financial management related to project implementation . The Ministry of Agriculture was able to re-organize the sector and begin negotiations with the Ifs. The projects were nationally executed and financed through the multilateral development banks. One project was financed from a Japanese donation (US $564,000) and administered by the WB. It started activities in June 1993. It enabled the ministry to negotiate a loan for investment in the "Rehabilitation of Small Irrigation Systems in the Coastal Valleys". The project is concluding its activities having attained the following objectives:


1) design of a national training program for strengthening the Water Users Associations in technical and administrative aspects, including supervision of investment sub-projects elaborated by the associations for the rehabilitation of the irrigation systems;

2) promotion program for the efficient use of irrigation water;

3) environmental evaluation of the irrigation systems.


Another project began in November 1994, financed from a Japanese donation (US $1million) administered by the WB, to negotiate a loan for investment in "Management of Water and Soil Resources" in the valleys of the coastal basins. Objectives include: elaboration of studies from three pilot coastal river basins; elaboration of a training program in management and conservation of natural resources.


In all the projects, there are technical components for environmental aspects.




Background and Objectives of Collaboration


The 1995 Consultative Group is an important mechanism to agree on the type, extent, and direction of external development assistance to the Philippines. Prior to 1995, the CG was mainly triggered by the IMF program and revolved around the pledges of the donor community. However, a number of factors led to a change in both substance and process. These factors are as follows:


1. Policy shifts among individual donors towards more social sector financing.


2. The changing profile of Philippine debt, economic recovery, and the importance that the government was giving to social aspects of development.


3. Efforts by the UN Resident Coordinator System, through the UNDP, to play a more active role in CG negotiations.


The launching of the Philippine Human Development Report and the subsequent attention given to it by both the government and the donor community at the 1994 CG was a major factor. Not only was the HDR supported by other bilaterals at the CG, but it also became a reference point and building block for subsequent interventions by the UN system in the CG.


Mechanisms, Institutional Arrangements, and Innovations


The 1995 CG meeting was unique in that it introduced a number of innovations in contrast to the traditional mechanisms that characterized previous meetings;


1. The existing core group was replaced by a larger, more informal group consisting of donor representatives based in Manila, based on a predetermined cutoff (US $50 million), reflective of their shares in ODA flows to the Philippines. Based on this cut-off level, the expanded core group was composed of WB, ADB, IMF, US, Japan, EC, Australia, Federal Republic of Germany, the UN System, and the Government.


2. Annual Holding of the CG without any triggering mechanism, i.e. unrelated to the Governmentís negotiation with the IMF.


3. Modification of the CG meeting from a traditional "pledging session" type towards more substantive discussion on selected themes. For the 1995 CG meeting in Tokyo, donors agreed that the CG will focus on two thematic areas: Poverty Alleviation and Public Expenditure Management. A special session with the private sector was likewise held for the first time to sound off Government priorities and private sector views on key development issues.


4. It was suggested that the venue for the succeeding years be left open for discussion, with option for rotation among a number of sites. For 1995, the venue was Tokyo, Japan.


5. Implementation of a two-stage consultative process - a preliminary in-country consultation and the actual CG meeting itself. For the in-country consultation, representatives from the NGOs and the private business were invited. The CG became a venue to discuss:


a. Policy issues such as sustained economic growth, agricultural and rural development, social services, education, and institutional development


b. Operational/Program Issues such as sharpening the focus of governmentís Social Reform Agenda, improving project design and implementation for sustainability.


UNDP and the WB co-chaired the Working Group on Poverty Alleviation.


Results Achieved and Lessons Learned


1. The CG meeting provided a venue for discussions on development issues that were more focused and frank.


2. From the donorís side, the meetings proved to be a good venue for identifying donorís concerns and for clarifying the Governmentís positions. This has fostered a better appreciation and a common understanding of issues.


3. Notwithstanding their limited participation (which could be improved), the inputs of the NGO representatives proved to be the most valuable in providing alternative perspectives on issues such as agrarian reform, ancestral domain, women and social justice among others. From the point of view of greater visibility and role, UNDPís role has been most critical. While both the Bank and the UNDP co-chaired the Working Group on Poverty, the bulk of the coordination for the consultative process was undertaken largely by UNDP, in its capacity as Resident Coordinator. The request of the Bank for UNDP to co-chair the working group attest to the recognition of the UNís substantive experience and comparative advantage in the social sector, a fact not lost to the other donors and the Government. It is also a recognition of the UNís credibility and impartiality especially in an area where other donors may not be perceived with the same neutrality as the UN. The 1995 CG marked a profound change in aid coordination and resource mobilization for human development in the Philippines.




UNDP/World Bank Collaboration: Background, Mechanism and Results


Project: The National Long Term Perspective Study (NLTPS) project in Sao Tome received US $200,000 in co-financing funds from the WB. The whole project budget is managed by UNDP. The national team and the Steering Committee have been appointed and will benefit from intensive training by NLTPS specialists. The first National Seminar is expected to provide an outline of the NLTPS program. The national participants are benefiting from the assistance of the Guinea-Bissau NLTPS team coordinator, who leads the training session.


Collaboration between the World Bank and UNDP in Sao and Principe has been growing and improving steadily over the last few months (January 1966). Since the World Bank does not have a representation in Sao Tome, it has called on UNDP when there is a WB mission to that country, essentially for information gathering and exchange purposes. The WB has also requested on a regular basis for UNDP to organize debriefing sessions with the donor community and representatives of the Government, during which the tentative conclusions and recommendations of their missions are presented and discussed.


Since 1995, the collaboration has gone beyond information exchange to substantive discussions and project sharing. Two areas in particular have been the subject of intensive discussions: NLTPS and Country Assistance Strategy (CAS) and Administrative and Civil Service Reform. On the NLTPS, it has been agreed that the cost of the UNDP project would be shared between UNDP and the Institutional Development Fund of the World Bank and project details are being finalized along those lines. It has been further agreed that the CAS, the preparation of which should start in February 1996, will incorporate the results of the NLTPS, the beginning of which is scheduled for March 1966.


On Administrative Reform, UNDP has financed the first phase of a project which is scheduled for completion in June 1996. Discussions have already taken place with the World Bank on the preparation of a second phase and the sharing of tasks and financing between UNDP and the Administrative Reform organized by the UNDP Country Office, to take place during the first trimester of 1996, during which the details of the second phase will be worked out.




Background and Objectives of Collaboration


Syria has currently one UNDP/WB project, "Strengthening National Capacity for Environmental Affairs SYR/94/004. The General Commission for Environmental Affairs has only recently been established and has not yet been able to fulfill its mandate. Nor does it have an organizational structure to effectively address the countryís environmental issues. As a follow-up to UNCED, Syria has committed itself to preparing a National Strategy and Policy for Environmental Safety as "Syriaís Agenda 21" and a comprehensive Environmental Action Plan (EAP) for its implementation. The objectives of the project can be summarized as follows:


- Upgrading the managerial/organizational and staff capacities of the General Commission for Environmental Affairs, the Regional Environmental Directorates and the local environmental committees so that, by the end of the project, a clear definition of the role and responsibilities of the three levels is determined and each level is capable of planning and implementing its program of activities and producing its targeted outputs.


- Developing the national capacity and strategy to serve as Syriaís Agenda 21 and a comprehensive blue-print for sustainable development and environmental protection in Syria.


- Developing an Environmental Action Plan (EAP), as a key instrument for the promotion of sustainable development, consisting of two elements: (1) long term objectives and priorities and (2) formulation of specific project proposals corresponding to immediate pressing environmental problems.


Mechanisms and Institutional Arrangements for Collaboration


A Project Management Unit has been established in Damascus. It consists of the National Project Coordinator, the Chief Technical Adviser (recruited by the World Bank), the National Project Director as well as representation from UNDP. The Unit is responsible for the follow-up of implementation activities and serves as the main liaison between UNDP, the World Bank and the General Commission for Environmental Affairs.


Results Achieved and Lessons Learned


The environmental studies of the seven river basins in Syria have been completed. The World Bank will be undertaking the second phase of analysis. The Tripartite Review meeting has been held with representation from the World Bank and UNDP. UNDP can take advantage of the World Bankís expertise in environment. UNDP and Capacity 21 should systematize cooperation with the World Bank in the field of environment. UNDP and the World Bank should coordinate to unify their financial procedures in order to facilitate the smooth implementation of project activities. The World Bank should also adopt a participatory approach for the design of national environment strategies.




Background and Objectives of Collaboration


Tanzania is one of the highest recipients of foreign aid in Africa. Over 60 donor agencies operate about 2,800 projects, which cover a wide range of activities. These activities are complemented by those of a large of national and international NGOs. The economic crisis of the late 1980s intensified the need for an increase in the volume of external assistance over the early years following independence. At that time, the volume of external assistance was relatively more modest.


The character and structure of external flows changed from primarily project-type assistance to include balance of payment support. More recently, the orientation has been towards a more programmed approach in the delivery of external assistance, and which has given rise to the subsequent need to improve the handling capacity of the Governmentís administrative machinery. The UNDP/WB collaboration in this context is linked to issues of donor coordination, the aim of which is to improve the countryís administrative capability to better manage the large volume of resource flows in support of the economy recovery process.


Mechanisms and Institutional Arrangements for Collaboration


The main mechanism for synchronizing the large volume of external assistance flows, at the country level, is the monthly DAC donor meetings chaired jointly by UNDP and the World Bank. At this forum, there is a formalized arrangement where agendas are drawn up, developmental issues deliberated and minutes of the discussions are taken, These monthly meetings serve as a forum for the exchange of information among donors of external assistance to Tanzania. Members of the Government are not invited to these meetings, unless donors ask for briefings on specific issues. The DAC meeting is the most important aid coordination arrangement in Tanzania, and the UNDP country office serves as secretariat and technical backstopping agent at these meetings.


Results Achieved


All donors consider the monthly DAC meetings as the most important coordination arrangement, and this has allowed for effective donor coordination in Tanzania. Examples of effective donor coordination in Tanzania include the "Civil Service Reform Program", the "Integrated Roads Project", and the "National Aids Control Program". There has also been effective donor coordination in the fields of telecommunication, energy, agriculture and forestry, and the social sectors. There is no dominant donor in Tanzania, though there are a set of important donors, primarily the World Bank and the Nordic countries.


What works well in Tanzania is donor coordination, and not aid coordination. A number of donors are reluctant to divulge or share information on their activities. Many donors are also hesitant to take a sectoral lead or facilitating role and the representatives of donor agencies are constrained by limited autonomy, having to refer decisions to headquarters.




UNDP/World Bank Collaboration: Background, Mechanisms and Results


The UNDP and World Bank collaboration in the Review of Public Expenditure was founded on earlier WB appraisal missions which gave way to the 1994-95 economic policy framework. In November 1995, a preliminary WB mission to Togo carried out a background analysis in consultation with UNDP country office so as to define the Review Framework and identify the main areas which require an in-depth analysis of financial management by the State. It provided the WB and UNDP the opportunity to agree on : 1) the need for a reallocation of public resources to the social sectors in view of the increasing vulnerability of the population under the adverse effects of the economic crisis; 2) the improvement of the mechanisms of public finances management; 3) the building of economic and financial management capacities in order to meet the challenges of poverty and development.


The UNDP country office participated and financed the Review of Togoís public expenses which brought together in Washington in March 1996, a high level interministerial delegation, an official from the UNDP field office, staff of the WB, IMF and the European Union. The main objective of the workshop was to assist the Government to rationalize its management procedures while establishing and controlling the instruments for transparency and efficient management of public finances. Within the context of the Donorsí Round Table, this exercise was expected to make it possible for the Government to present to its external partners the measures it is planning to adopt in order to carry out the reform of public finances and the strengthening of both the central and decentralized department for the rational management of available resources.


The Review exercise in Washington included discussions on the analysis of public expenditure, an analysis of the financial impact of public enterprises on the national budget, the legal framework for the programming and execution of public preparation procedure and evaluation of investment programs. The experience will help establish cooperation between the central departments of Finance and Planning which should combine their abilities to set up and efficiently manage coordination mechanisms in the area of programming, budgeting and resource management.




UNDP/World Bank Collaboration: Background, Mechanisms and Results


UNDP/WB cooperation is at the early stages of development. As a result of catalytic funds from UNDP, the Government was able to attract funding of US $6.25 million from the World Bank for its environmental management program. UNDP continues to support the environmental program through the provision of technical assistance to the environmental management authority. UNDP is re-imbursed by the WB for consultancy services and equipment procurement on behalf of the EMA. UNDP has been actively pursuing other areas for collaboration: poverty eradication and the basic education project. UNDP is recognized by the Government as the lead agency for poverty eradication. In education, UNDP/WB collaboration was a possibility and a draft agreement was drawn up. The government did not pursue this initiative. The issue has once more been re-opened.




UNDP/World Bank Collaboration: Background, Mechanisms and Results


The Vietnam UNDP office reports that it has discussed the issue of cooperation with the Bank extensively in-house, and is demonstrated by the regular contacts between UNDP and the World Bank at all levels. Historically, UNDP provided crucial support to WB operations in Vietnam at a time when it did not have a resident mission. This relationship has been maintained after the opening of the WB office. As an example, during his recent visit, a meeting for the WB President with the NGO community was organized in the UNDP office.


The most important area of cooperation is on aid coordination in general and the Consultative Group process in particular. This is working very well and is documented in the case study on aid coordination in Vietnam which will be released soon by BPPS.


At the project level, the evaluation summary for "Strengthening Economic Management in Vietnam - Lessons from a Training Project" which is an example of a good working relationship with WB/EDI. However, at the project level, in general, UNDP/World Bank relations are unbalanced, with the Bank tending to look at UNDP purely as a funding source for its own technical assistance, rather than as a full partner in the process.


On the whole, this office has been able to maintain a partnership with the Bank by having the capacity to produce on a consistent basis, substantive papers on UNDP focus issues (poverty, aid coordination etc.). This capacity has given UNDP visibility and credibility with donors and the Government, and has thereby enabled UNDP to develop a balanced relationship with the Bank. When the relationship is based more on UNDP as a funding agency for World Bank technical assistance initiatives, then the leverage for this kind of influence diminishes.


The rationale for the project "Strengthening Economic Management" (VIE/88/543) was to need to equip policy-makers with adequate knowledge of market economics and the skills to undertake macroeconomics management. Funded by the UNDPís former Management Development Program, the project was intended to reinforce the countryís economic renovation program through deepening its economic management capabilities. The target beneficiaries were to be Office of the Government, and the National Economics University, Hanoi. While not the only UNDP project aimed at strengthening economic management in Vietnam, it was the first to adopt an integrated approach to macroeconomics management in which intersectoral collaboration is stressed. The intersectoral impact was to be achieved in the long run through the training of personnel from various ministries, government organizations and training institutions provided by the project. This latter group of beneficiaries would also be expected to provide further training to others in the subject areas emphasized by the project. All aspects of economic management were reflected in the training course.


The project was considered a success on the basis of the accounts of beneficiaries, as well as from an independent evaluation conducted at UNDPís request.


The evaluation report concluded that "the immediate objectives of the project have been achieved", and that "overall, the project has strengthened and sustained the reform and renovation process (so that) it has fully achieved its development objective". A tracer survey of participants to the projectís activities also revealed their very positive assessment. In particular, 99% of those responding felt that internal training courses and overseas study visits were extremely effective in enhancing their knowledge for policy-making. 90% reported that their management skills were upgraded through such training, 96% that the project had successfully strengthened training and research capacity, and 80% that learning about the experiences of other countries was a good idea. A strong demand by official to attend in-country courses and numerous requests for follow-up training also testified to participantsí positive assessment of the project. On the basis of these evaluations, a new phase of the project, to last two years, was implemented beginning November 1993. The activity components of the new phase are expected to resemble those of the existing project, but will incorporate the lesson learned from its implementation.




Background and Objectives of Collaboration


UNDP/World Bank collaboration began in earnest when the World Bank established its resident mission in Yemen in Spring 1995. With a World Bank office in Yemen, UNDP Yemen could now begin to directly liaise with its staff in areas of joint collaboration. For over a year now, the WB Resident Representative and his staff have been actively participating in both UN System wide activities and UNDP programming exercises. The objectives of UNDP/World Bank collaboration is to establish a closer link in terms of programming output and to utilize a closer link in terms of programming output and to utilize each otherís strategic advantage to collaborate in order to deliver a more comprehensive and effective development program to the Government of Yemen.


Mechanisms and Institutional Arrangements for Collaboration


The World Bank is a full partner in both UNDP and UN System mechanisms. At the level of the UN System, the World Bank Resident Representative and his staff regularly participate in meetings of the UN Country Team, UNAIDS Theme Group, Coordination Committee on Operations and the Disaster Management Team. Collaboration between the World Bank and UNDP specifically has grown out of the priorities newly identified, based on Yemenís Five Year Plan (1996-2000). UNDP and the Government of Yemen established the four priority programming areas as: water sector, environment, decentralization/ governance and poverty alleviation/employment generation. UNDP Yemen has begun its formulation of Program Support Documents to which the World Bankís input has been sought and taken into consideration. UNDP staff participate in WB workshops in program areas and are fully briefed by their missions.


Arrangements for collaboration also include the briefing of each otherís formulation and assessment missions with the appropriate UNDP, UN System and World Bank staff and the sharing of their findings. This arrangement has resulted in a large increase of knowledge on both sides of each otherís activities and experience. It also has enabled each side to quickly identify where and how collaboration can occur. In addition, the World Bank Resident Representative worked as co-chair with the UN Resident Coordinator to establish a new Aid Coordination structure which puts the Government of Yemen in charge of establishing Aid Coordination arrangements in Yemen. The World Bank Resident Representative worked closely with the UNDP Resident Representative/Resident Coordinator to establish a consensus of the international donor community around the new structure. It is expected that this collaboration will continue to hold high importance after the new structure is in place.


Results Achieved


The most notable results of UNDP/World Bank collaboration in the past year have been the achievements in the formulation of new UNDP programs, such as the following:


Water Sector - The Program Support Document (PSD) has been formulated and is entering the finalization stages. The World Bank has been a member of the Multi-Donor Coordination Group working closely with UNDP and Yemenís National Water Resources Authority to draft the PSD and to identify sources of possible funding. The total cot of the project is over US $ 13million and the World Bank is expected to release $3.5 million to cost-sharing through the Government of Yemen through its numerous Water projects.


Poverty Alleviation and Employment Generation - UNDP is in the final formulation stages of PSDs on both these areas. The Poverty Assessment completed recently by UNDP followed and built on the Poverty Assessment completed by the World Bank six months prior. UNDP ensured that its poverty assessment built on the World Bankís experience by filling in gaps which were important to UNDP programming. It is expected that the World Bank will also work closely with UNDP in this program in similar ways as the water sector collaboration. Specifically, the World Bank credits in Vocational Training and Public Works is expected to be partially utilized by the Government of Yemen in close collaboration with UNDPís Employment Generation program.


Environment - The World Bank is completing its own evaluation in this area and UNDP is in the formulation stage of its PSD. The World Bank and UNDP have already begun preliminary discussions on how to link their assistance. The recent floods in June 1996 which have resulted in over $2billion in damages have also led to close collaboration between the World Bank and UNDP. The World Bank with the Government of Yemen is expected to divert some of its credit to help rebuild water and transportation infrastructure damaged by the floods, as well as to establish a separate credit for flood disaster rehabilitation. UNDP and the WB have engaged in information sharing of each otherís assessment missions in this area. The World Bank is a member of the UN Disaster Management Team and its personnel and assessment missions regularly attend the inter-agency, NGO and Government forum of OSOCC (On Site Operations Coordination Committee) where all assisting partners discuss the operational side of delivering assistance in a collaborative manner. The World Bankís input, along with the UN Systemís, is expected to be substantial in assisting the Government of Yemen in overcoming this most recent disaster.


Lessons Learned


Both UNDP and the World Bank have learned from the benefits of close collaboration over the past year and a half which have included:


- identification of each otherís strategic advantages in the areas of collaboration. Specifically, what both the WB and UNDP are "good at" in priority programming areas and where the experience of one can benefit the other.


- the practical rules and regulations of each otherís operational side in terms of funding and the delivery of assistance and how to utilize them to benefit the needs of each other.


- the importance of information sharing in order to build each otherís knowledge base on the development efforts and priorities of the Government of Yemen.




UNDP/WB Collaboration: Background, Mechanisms and Results.


The Zambia report on experience in UNDP/World Bank collaboration was prepared in conjunction with the World Bank Resident Mission. Coordination of the WB and UNDP activities at the country level is receiving increased attention. This is partly due to recognition of the economies of scale and reduction of overheads inherent in such collaboration. This has revolved around sector investment activities. The institutional mechanism for enhancing UNDP/WB collaboration is provided largely under the UN Resident Coordinator System of which the UNDP Resident Representative is also the Resident Coordinator. The individual and collaborative concerns and strategies of the UN Agencies (including UNDP and WB) for the development of Zambia are contained in the Country Strategy Note (1995). The CSN is expected to improve coherence, coordination and teamwork within the system and to strengthen the response and effectiveness of the UN System and to the needs of Zambia.


Collaboration between UNDP and the WB is increasing steadily. This is particularly significant in the agriculture and environment sectors. In agriculture, the preparation of the Agricultural Sector Investment Program (ASIP) was done jointly with the WB taking the lead and UNDP actively participating.


There has been a major re-orientation of WB activities with the integration of environmental considerations into the mainstream of its work particularly since the Rio UN Conference on Environment and Development in 1992. Beginning in 1993, UNDP and the WB have cooperated in the environment sector in Zambia, in the formulation of a National Environment Action Plan (NEAP), which was subsequently adopted by the Government as a national policy on environment. From August 1994 to April 1996, UNDP and the WB co-funded the project which culminated in the preparation of an environmental support program.


Lessons Learned


There is a need for donor agencies to closely monitor the executing agency. This arose during the environmental support project, where the executing agency was so weak that it could not use available resources fully and efficiently. There is a need to set clear rules for joint monitoring of executing agencies, or sub-contracting. For example, the Environmental Support Program has been sub-contracted to the International Union for the Conservation of Nature (IUNC).


Both institutions are paying particular attention to poverty reduction and grassroots participation. The Bank has been working to improve donor coordination of poverty reduction efforts. Coordination between the Bank and the UN System on poverty at the project level is intensive particularly in the area of social action programs. Collaboration will also be seen in the planned high-powered UNDP/WB/UNICEF poverty mission to advise the UN System on how to assist Government tackle issues.


The WB has been supporting private sector development under the economic reform since 1989. The two institutions have collaborated in supporting the Zambia Privatization Agency (ZPA), the Investment Centre, the Ministry of Commerce and Industry and the Zambia Association of Chambers of Commerce and Industry. UNDP and the WB, with other donors have cooperated in the preparation of the GRZ/UNDP-led annual Development Cooperation Report and the GRZ/WB/IMF Policy Framework Paper. Both organizations have cooperated at the Consultative Group meetings on Zambia which are chaired by the World Bank. The Bank has expressed interest in using the UNDP procurement procedures. In some cases, it is felt that World Bank funded projects would benefit from procuring their requirements using the UNDP procurement system instead of going through a laborious competitive bidding system.




UNDP/World Bank Collaboration: Background, Mechanisms and Results


One area of positive UNDP/WB collaboration is the Bankís support to the Forum on Poverty Reduction. The Forum is an initiative of the Institute of Development Studies in the University of Zimbabwe. The national poverty forum promotes a national dialogue on poverty reduction, as well as conducting research on poverty issues. The World Bank contributed US $ 15,000 in co-financing to UNDP in support of the forum. The establishment has been supported by UNDP with US $20,000 seed money, and US $6,000 cost-sharing from the World Bank through UNDP. The IDS is now embarking on the production of a national Human Development Report. The WB also participated in the steering committee of the poverty assessment study, financed by UNDP and other donors.


The WB is currently developing a big Community Development Program (CDP) which is part of the Poverty Alleviation Action Plan (PAAP) of Government, coordinated by the Social Development Fund (SDF). UNDP has supported the development, coordination and implementation of the PAAP since the initiative was taken by Government in 1993, as well as capacity building in SDF. The World Bank support will go directly to SDF, and is expected to be around US $2million. UNDP has been consulted by Government and the WB during the development of this component, and has played an active role in developing the framework for this program.


Under the Community Development Program, the WB is focusing on expertise for community mobilization and capacity building, which is developed under another UNDP supported program, the District Environmental Action Plans (DEAP). The WB is planning to build on this program. The objective of both UNDP and the WB is to develop a closer link in poverty alleviation and environmental management strategies and programs.


Background and Objectives of Collaboration


Guinea-Bissau is a Round Table country. It has been pursuing political and economic liberalization for over one decade, with the latter process being supported by World Bank-IMF Structural Adjustment Programs. In the past, UNDP and the Bank have collaborated.There is also good dialogue with the WB on the Economic Reform Program.








The following case studies are some of the examples of collaborative initiatives and programs by UNDP and the World Bank, from the Regional Bureaux for Africa, Latin America and the Caribbean, and the Arab States. They are among those programs for which evaluation exercises have been completed. Hence, this section presents the cases in the context of their evaluations, which were conducted for, or on behalf of, the respective Bureaux. Where more than one evaluation is available, the evidence and information are presented from those available sources. This helps to ensure balance in the presentation of the "best practices", as different evaluations give information consistent with and relevant to the evaluationís objectives and terms of reference. A recently concluded evaluation of the impact of Global, Interregional and Regional Programmes in all five Bureaux offers details on the results achieved by several excellent programmes involving UNDP and the World Bank. As stated earlier, this catalog is a work- in-progress, and does not cover a comprehensive and exhaustive review of all joint activities between the two institutions. The five cases identified here are:


1. The GLOBAL program: GLO/92/004 UNDP/World Bank/WHO Special Program for Research and Training in Tropical Diseases


2. The INTER-REGIONAL programs

INT/92/001 UNDP/World Bank - Water and Sanitation Program

INT/93/002 UNDP/UNCHS/World Bank - Urban Management Program


3. UNDPís Non-Core Resources and Co-Financing Modalities - the Latin American Experience


4. The REGIONAL programme: Mediterranean Environmental Technical Assistance Program. METCAP III (1996-2000).


5. The Global Environmental Facility (GEF)



Program History and Background


Since the late 1970s there have been a series of international meetings that stimulated the awareness of water and sanitation-related problems. Between 1997 and 1994, seven international consultations were held, most under the patronage of the United Nations. In 1978 the UNDP and the World Bank launched the first global project designed to apply more appropriate water and sanitation technologies after decades of uncoordinated donor activity in the water and sanitation sector. At the time, both organisations were preparing to meet the challenges of the International Drinking Water Supply and Sanitation Decade of 1980s. During the Water Supply and Sanitation decade, one billion people obtained safe drinking water for the first time and more than 750 million gained access toimproved sanitation facilities. The first collaborative effort was aimed at the promotion of low-cost sanitation and water supply technologies for poor people in rural and marginalized urban areas as an alternative to costly conventional sewage and piped water systems. The main activity was to demonstrate and promote low-cost, on-site sanitation using ventilated pit latrines and pour-flush toilets. Work was done on the development of computer software to facilitate the design of low-cost piped water systems.


Over the next 15 years the UNDP-WB Program evolved both in organizational structure and in the thematic issues that it addresses, through a series of projects that were successive phases of its core components. In 1981, following an in-depth evaluation of its earlier work, the Program was expanded through two UNDP global projects. At that time, different types of equipment were field-tested in 17 African, Asian and Latin American countries. In 1991-92, UNDP approved three additional projects, one global projects, and two regional ones for Africa and Asia and the Pacific. The UNDP and the Bank agreed to cooperate in establishing several Investment Project Preparation Units (PPU) in 1982 - two in Africa, funded by the Regional Bureau for Africa, and one in Asia, funded by the Regional Bureau for Asia and the Pacific. The theory behind the PPUs, which was not completely borne out in subsequent events, was that the main obstacle to increased external investment in the sector was the lack of a well-prepared pipeline of investment projects. This lack, in turn, stemmed from countriesí meager experience with project preparation. The PPUs were intended to remedy this situation by providing expert assistance in identifying and preparing projects for consideration by international donor and lending agencies, including the World Bank.


By 1987, the UNDP and the Bank, with growing support from other donors, were cooperating in a group of interregional and regional projects related to the Water Supply and Sanitation Decade. Each was separately funded and had its particular objective specified in a project document.


Form of Field Implementation


As a result of several periodic evaluations, two trends in the orientation of projects had emerged. The first was a shift away from the heavy emphasis on technology research and toward institutional issues and the development of service delivery mechanisms based on community participation. The second was towards more unified management of the collection of projects in an effort to achieve better coordination and impact. For example, the African PPU evaluation recommended that PPUs be replaced by interdisciplinary Sector Development Teams (SDT)s which could bring together the expertise that was scattered among individual projects under a single management. The SDT concept was accepted. Beginning in 1988, it was developed into a network of broader-based RWSGs which, with offices in Abidjan, Jakarta, Nairobi, New Delhi and in 1995, La Paz, now constitute the principal avenue through which Program activities are implemented in the field


A third trend that emerged as the Decade progressed was a growing realisation that to be really effective, project preparation and other micro-level activities had to be carried out within a supportive national sector policy and planning framework. Several evaluations of the PPUs carried out in Africa and Asia confirmed this and led to increased emphasis on broader sector work, including sector studies and policy advice, as a major component of Program activities.


These trends culminated in 1987 in the Bankís decision to merge the separate projects into a single Program with an integrated strategy. To help accomplish this, the Program was placed under the management of the Water and Sanitation Division (INUWS) of the Bankís central Policy, Research and External Projects Relations (PRE) complex. Since 1988 the Programís mission has evolved. The initial mission was to increase the capacity of country to deliver water supply and sanitation services to low-income groups, primarily with low-cost and community-based approaches. This mission shifted to assist developing countries in improving poor peopleís access to sustainable services. Most recently, the mission has been modified to place more emphasis on community management than country responsibility, and thus, create capacity for communities to provide services for themselves.


In 1992, Promotion of the Role of Women in Water and Environment Sanitation Services (PROWESS) was integrated into the Program. PROWESS began in 1983 as an interregional UNDP project with the overall objective of promoting ways to include women more fully in water supply and sanitation projects. Over time, it became active in more than 20 countries and expanded its approach to include four areas: gender analysis, community involvement, participatory techniques and capacity-building.


In the 1990s, sector professional agreed that, although low-cost technologies had been refined and made available, water and sanitation systems fell idle and into disrepair because insufficient attention was being paid to the ability of institutions and communities to manage and fund them. In 1992, the Program issued "Improving Services for the Poor: A Program Strategy for the 1990s", which comprised of a three strategy components: working with partners to support sustainable investments, building the capacity of governments and people to develop and maintain systems, and exchanging the knowledge cultivated in doing so. Since them, the Program has increasingly structured projects to support investments by building capacity, treating water as an economic and as a social good and employing demand-based approaches to involve stakeholders in the selection operation and maintenance of systems.


The UNDP-World Bank Water and Sanitation Program is a continuation of a decades-long effort to improve poor peopleís access to safe water and sanitation. An examination of the Program was carried out in 1995 by a team of independent evaluators who have analyzed its achievements and shortcomings, and then made recommendations for changes. The team also attempted to draw lesson from the Programís activities that will benefit the now-forming Global Water Partnership into which the Program will be incorporated.


The origins of the Water and Sanitation Program go back to 1978 when the UNDP and the Bank to work together to promote low-cost sanitation and water supply solutions for poor people in rural and marginalized urban areas. In subsequent years, through a series of programs and international meetings, emphasis shifted away from technical research on equipment such as hand pumps to broader concern about how to involve community participation. It became clear that the task could not be accomplished without an effective policy framework, planning and project preparation and that the Program had a role to play in assisting communities and national governments in these areas. Along with the need to consolidate expertise and experience that were scattered among various programs, these trends led to a 1987 merger of a number of separate projects into a single Water and Sanitation Program.


Since its formation, the Programís mission has evolved and can now be stated as "creating capacity so they can do it themselves". Its focus remains the poor in rural and marginalized urban areas. However, is has increasingly structured projects to support investments in the water and sanitation sector by helping communities and governments develop their capacity to solve problems, to treat water as an economic and a social good and to involve all of the stakeholders in the selection, operation and maintenance of systems. The Program has attracted widespread support and has made major contributions in many countries. The Evaluation Team recommends without qualification that the Program be continued and serve as a major part of the Global Water Partnership. However, there are several areas of concern and several changes that should be considered.


The evaluation team discovered two significant problems. First, the objectives that have been set for the Program are broad and ambitious. With a small staff and dwindling financial resources, the Program resources are being stretched too thinly. Second, there is not a clear definition of how the Program is to be measured, how its management or sponsors can demonstrate that any of its objectives are being reached. As the evaluation teamís work progressed through meetings, visits to nine countries, and a questionnaire completed by a large number of people involved in water and sanitation sector, other themes emerged. For example, although there are important exceptions the management and staff of the Program are not doing an adequate job of transferring lessons from one community to another. At the same time the Program staff is perceived to be isolated; it has seldom looked outside to learn from the approaches and techniques of others involved in similar activities.


The Evaluation Team used a variety of Program documents to establish five statements which describe the desired situation at the end of the project, and attempted to measure progress toward each of these. The Programís goals and the sum of the Teamís conclusions are:

  1. National and local capacity from community level to the government ministerial level will have to be strengthened; measures to build capacity include extension of participatory training and skills, including greater attention to gender issues; creation and support of national training networks linked into regional and interregional networks; and recruitment of national staff for in-country and regional posts. In many countries, the Program has strengthened national and local capacities in the water and sanitation sector. However, there often remains a gap between intent and implementation. Decisions about projects are made by donors and government officials who do not know what the community wants or needs. Responsibilities of ministries and agencies are frequently conflicting and overlapping, a situation that project managers sometimes attempt to remedy by proposing a parallel structure of NGOs. The Program must review its efforts to build capacity at all levels, to develop and disseminate models that demonstrate how to increase the ability of users to take care of systems with a minimum of external help. It also should increase its emphasis on involving the entire community, especially women, on whom the heaviest burden of inadequate facilitates often falls.

  3. Participating countries will have made significant progress is shifting sector policies and strategies away from government-driven, top-down approaches towards decentralized, demand-driven, bottom-up approaches that legitimize a variety of options for provision of services to the poor. The Programís workplans for 1991-1995 include projects to help develop policy in 16 countries, strategy in 22 countries and actual plans in 2 countries. The Program has successfully accomplished much of this. It has provided policy development and planning assistance on national, regional and municipal levels, and has helped plan missions targeted at specific issues, such as investment or the involvement of women. Adoption and implementation of these plans has varied widely. In some cases, including Ghana and Benin, policies have been implemented. In Pakistan, implementation is slow.

  5. Qualitative improvements will have been made in the design and implementation of large-scale, sustainable, investment projects targeting the rural and urban poor, funded by the World Bank, the regional development banks and other donors, as a result of Program inputs. The Program has had a positive effect on investments in the sector. It has been invaluable in assisting in donor coordination and collaboration and has influenced the approach taken to project design by the WB and others. It has developed new approaches to community financing schemes and developed strategies that have generated new investment. Some bilateral donors believe that the RWSGs through which the Program carries out much of its work, are not sufficiently linked to their programs or those other donors.

  7. A systematic learning process for testing new approaches to sector development, monitoring the results and feeding them back into the sector development process will have been developed and institutionalized in most of the participating countries. There is little focus on systematic learning, identifying topics and questions to be studied during an on-going project to learn and improve on the project. There is also resistance to studying and drawing lessons from the work of others.

5. Sector coordination will have been significantly improved. The Program has had a positive effect on sector coordination within countries by involving and working with agencies and organizations on specific projects. Generally viewed as an independent organization with a special relationship with the World Bank, it can serve as a channel for informal communication between government agencies and community organizations and private enterprises.





Funding for the Program peaked in 1991 and then declined as disbursements from UNDP dropped by nearly 50 percent. Although there has been some increase in the flow of funds from bilateral donors, the loss has not been offset. Bilateral donors now comprise the Programís chief support. In 1995, out of a funding of almost US$ 11.1 million, bilateral donors contributed $6.4 million. UNDP provided $3.7 million, while the WB contributed only $355,000 or 3.2 percent of the total.


Financing problems have contributed to low staff morale, high turnover and a widespread perception among the staff that the Program lacks Bank commitment. Individuals frequently have to be supported with relatively short-term project funds. There is also a burden on management time. Almost half of key managersí time is spent on activities relating to fund raising.




In sum, the Evaluation Team concluded that the Program performs a unique function. It is properly focused on providing the worldís poor in rural and marginalized urban areas with water and sanitation services. It is trusted by nearly all of its partners as an independent entity that is still close enough to the Bank to influence its decisions. It is accessible and credible. Improvements are possible. In some areas, they are critical, but the Program deserves to be continued.


The Global Water Partnership


UNDP and the World Bank plan to create a Global Water Partnership (GWP). At the Stockholm Water Symposium in August 1995, top officials of the two institutions invited others to join them in creating a Global Water Partnership. The purpose of the GWP is to support integrated approaches to water development consistent with the Dublin/Rio principles, by encouraging stakeholders at river basin, country, regional and global levels to work together in more efficient, collaborative ways. To achieve this, the Partnership will bring together expertise from existing ESAs and others to develop integrated solutions to water problem. It will also identify gaps in existing services and create programs designed to address these gaps, with emphasis on programs that have a direct impact on the poor, in particular.




INT/92/001 & RAF/92/007: UNDP/World Bank Water and Sanitation Program


The UNDP/World Bank Water and Sanitation Program is a Global program, arising out of the International Drinking Water Supply Decade. It is funded by UNDP, the World Bank, and 14 bilateral donors. Its purpose was to help countries find better ways of providing poor people access to water supply and sanitation services on a sustainable basis, and to help them build the capacity to do this with progressively less external support. The program currently supports Regional Water Supply and Sanitation initiatives in 20 countries and large World Bank-funded projects in 15 of these countries. Both the inter-regional and the umbrella regional projects have succeeded in operationalising their objectives. This includes sector policy and strategy formulation; new roles for governments and non-governmental organizations; investment projects responding to demand; and decentralization of responsibilities by involving the private sector.


In addition, policy changes have been introduced in 7 participating African countries, leading to the improvements in the enabling environments. These vary from program sector in Uganda to the development of a policy framework paper and adoption of a National Conservatory Strategy in Ethiopia. The program has been successful in identifying large-scale investments and attracting funds from bilateral and some UN agencies in water supply and urban sector rehabilitation projects. The program has enhanced coordination among sector actors which has reduced the duplication of efforts so that the design of projects will be more specifically targeted at community needs. The program has also expanded the International Training Networks, bringing the total number to eight. The ITN centers have developed the experience and capacity for participatory training and tool development and are major vehicles for training sector staff and professionals.


Inter-regional projects:


The Water and Sanitation Program was designed jointly by the World Bank in consultation with UNDP on the basis of lessons learned from their previous collaborative work in the water sector which began in 1978. The program initially started out with a focus on the supply of low-cost technologies for the poor, and by 1992, it had shifted emphasis to institutional issues and community participation. The regional umbrella Water and Sanitation Project is an extension of the interregional project designed by the World Bank.


For inter-regional projects, what the program believes to be important thematic areas are not necessarily compatible with what the countries themselves have identified as priority areas within a sector. Field research found that participating countries regard inter-regional projects as the property of the executing agency, and they consequently pay very little attention to these projects. One exception is the Water and Sanitation Project. The regional component of the Program (RAF/92/007): Water and Sanitation for the Poor in Africa seems to be the cement that binds the Africa Bureau with the interregional program. This type of arrangement may be the only way to ensure greater involvement of country offices in interregional projects.


One concern regarding inter-regional projects relates to what UNDP gains from these projects. There are no mechanisms to apply to country programs successful experiments (best practices/effective modules) coming out of inter-regional and global projects. The case of the privatization of Water supply and sanitation activities (e.g NETWAS-Nairobi) is a good illustration of this point.


The Water and Sanitation Program (regional) does not have any indicators to measure program success. The number of activities listed under each objective appear to be too many, making implementation and monitoring almost impossible, given the limited staff and funding available. The Urban Management Program has similar problems. The former project gave emphasis to community participation in the management, maintenance and funding of water and sanitation systems. It has a clear gender and participation strategy and has pioneered the popular PROWESS training methodology. The program is open to admit that gender planning has been difficult to institutionalize and it is making efforts to sustain awareness of the value of gender sensitivity in general.


The RAF/92/007 is the umbrella project for the Program in Africa. Its design follows the Programís mandate and purpose, adapted to the African context. Its development objective is to expand access of the rural and urban poor to safe and sustainable water supply and sanitation. The project was prepared beginning in 1991, and received an advance authorization to begin operation in January 1992. It was approved in mid-1992, with a budget of $4.0 million for 1992-96 (reduced to $3.1million following UNDPís funding crisis). The budget provides core funds for Regional Water and Sanitation Groups (RWSGs) in Abidjan and Nairobi. The RWSGs are small interdisciplinary teams comprising specialists in water supply and sanitation and other fields, who assist countries to undertake a variety of activities in support of the project objectives. Substantial additional funding for Africa has come from other UNDP sources (interregional and country program funds) as well as from cost-sharing with bilateral agencies, co-financing from bilateral agencies channeled through World Bank trust funds, and from the World Bank.


Tripartite Review of RAF/92/007: Report of review meetings held in Nairobi and Abidjan in September/October 1995.


The TPR meetings to review projects in Eastern and Southern Africa, as well as Western Africa formulated a set of conclusions and recommendations which are summarized below:


1. Participants at both meetings (for all regions) strongly expressed their desire for more direct involvement in setting the RWSGs strategies, objectives, and workplans and in monitoring progress.


2. "Focal" or "contact" points should be established at the country level. This was expressed more strongly for the Eastern and Southern African countries, than for the Western.


3. The staffing of the RWSGs should be strengthened in various ways. Recommendations differed across regions.


4. Communications should be improved. This was a concern that affected all the countries. The meeting proposed the establishment of national and regional advisory groups and country focal points, among other recommendations.


5. The capacity of the RWSGs to support gender-sensitive programming needs to be enhanced. Most of PROWESS efforts to date had been aimed at development of and training in participatory techniques.


INT/92/005: UNDP/World Bank/UNHCS Urban Management Program


This is a multi-donor initiative which started in 1986. Phase I was executed by the World Bank (1986-92), and focused primarily on urban research and the development of generic policy framework papers, discussion papers and tools with global validity and applicability. Phase II (1992-1996) was designed to translate the result of this synthesis of experiences into operational support for policy action planning at national, provincial and city levels. The programís achievement in putting these results into practice has been disappointing, lacking the kind of local grounding that the Water and Sanitation Program has successfully done. Phase III, which was recently launched at the Habitat II Conference, will complete the institutional anchoring component that began during Phase II.


The objectives of the UMP are 1) capacity building at both country and regional levels, and 2) facilitation of national and municipal consultation on policy and program options based on participatory structures that draw upon the strengths of developing country experts and expedites the dissemination of that expertise at the local, national and regional levels.


For inter-regional projects, there are no criteria for selecting country partners and project objectives are usually too broad. As a result, these project end up over-extending their limited resources, and making very little impact in the process. Project documents are generally very weak and sometimes very ambitious. It is also very hard to say whether the projects relate to the priorities of individual countries. Decisions about projects are made by donors and government officials who do not know what the community wants or needs. In the two projects evaluated, UNDP assistance goes to support the work programs of the core teams in the executing agencies. In the case of the Urban Management Program, UNDPís funding goes to support the work of the Core Teams at UNCHS and the World Bank, as well as the Programís four regional offices. Given the fact that UNDP does not have an internal capacity to manage these programs on its own, joint sponsoring with the World Bank has been beneficial.


Regional Programs


Ownership Features


Inter-regional are generally very centralized and supply-driven at the global and inter-regional levels. Both the Water and Sanitation and the Urban Management Programs are considered as the property of the executing agencies. Decisions about projects are made by donors and government officials who do not the what the community wants or needs. However, at the regional level, they are decentralized, demand-driven, and involve the participation of NGOs, local communities and national governments. The Water and Sanitation Program does this successfully at the national level. There are no signs of local or national ownership of the Urban Management Program. The project operates without any effort to link its activities to country strategy. The decentralization of the program to the four regional offices has not resulted in a sense of ownership by participating local governments. Regional offices, except for the Arab States, act as a "transmission belt" for issues identified by the Core Team in Nairobi rather than as independent organs designed to ensure that issues are "regionally driven".


Regional projects have generally done a better job of utilizing consultations to facilitate a sense of ownership among participating countries. National governments rarely show their commitment to regional projects by making adequate budget provision to support project activities at the national level.


Capacity Development Features


The Water and Sanitation Program has been highly participatory and demand-driven, with greater emphasis on capacity building of community groups. The program has assisted several governments in the development of national water sector policiy and institutional reforms, including decentralization and private sector involvement. Training of decision makers and sector planners in water supply and sanitation, community management, and training trainers in PROWESS participatory techniques have been useful in sector management.


THE UNDP/WORLD BANK/WHO Special Program for Research and Training in Tropical Diseases


The Global Program GLO/92/004 is a UNDP/World Bank/WHO Special Program for Research and Training in Tropical Diseases. It began in 1975 with assistance from UNDP and WHO. It has an elaborate strategy for capacity building. The program has evolved from a primary emphasis on academic, knowledge-based research to a phase of product development and now to emphasis on application of research. It has created a network of 5,000 cooperating scientists in 135 countries. The program has helped develop the capacities of developing countriesí research institutions to undertake research in critical areas of tropical diseases, by building human resources through training and by providing the necessary equipment and financial support. However, Tropical Disease Research is very expensive, takes a long time before proven cures are found, and is beyond the financial means of most developing countries to undertake such activities on their own. Without sustained donor support, such programs are not sustainable.


The UNDP/World Bank/WHO Special Program for Research and Training in Tropical Diseases has accelerated and expanded its onchocerciasis operational research program via financing from an African Programme for Onchocerciasis Control (APOC) Trust Fund. Its goal is the elimination of onchocerciasis as a disease of public health and socio-economic importance throughout Africa. Building on the success of the Onchocerciasis Control Programme in West Africa (OCP), which is on the verge of eliminating the disease from 11 West African countries, where the disease is still a public health problem. The Program will be based on a partnership between participating governments, NGOs, multilateral and bilateral agencies. The governing body will be the Joint Action Forum (JAF) on which these parties will be represented. The co-sponsors will constitute the Committee of Sponsoring Agencies, which will act as executive secretariat for the Program. The fiscal agency will be the World Bank, which has established a separate trust to finance APOC. The executing agency is WHO, and the programís headquarters are located in Africa.


According to the evaluation, the program has strengthened the capacity of the research institutions to undertake research in the critical areas of tropical diseases, by building human resources through training, and by providing the necessary equipment and financial support to those institutions. In Kenya, the TDR supports the Kenya Medical Research Insituteís research activities in tropical diseases. The Onchocerciasis Control Program has virtually eliminated transmission of river blindness in 11 countries, protecting 30 million of the 90 million at risk.


Financing and Cost-Sharing


With the exception of the National Long Term Perspective Study project, which is entirely funded by UNDP from the regional IPF and SPR funds, all the other projects covered have some kind of cost-sharing arrangement. UNDPís participation was critical in leveraging funds from other sources. UNDPís contribution and leadership role does not come out strongly or rarely acknowledged in Global projects.


While UNDP has succeeded in leveraging funds for Inter-regional projects, the executing agencies reap the benefits. For example, the World Bankís contribution towards the Water and Sanitation and the Urban Management Programs has been negligible. They have a lot more to do with the profile of the WB as the lead agency in both sectors. The value-added to UNDPís profile or internal capacity building in these sectors has been negligible.


Project Execution, Implementation, Management and Coordination


The operational strategy for the Tropical Research project is based on a network of existing research institutions and laboratories, decentralized management responsibilities to national institutions and regional networks. Monitoring of the performance of each aspect of the program is done by panels of external reviewers from the scientific community. Effective monitoring of the program is facilitated by a computer-based Management Information System for Tropical Research. Monitoring is also done through periodic review of the program by the various steering committees and the tripartite review which approves the work plan of the TDR. The role that UNDP plays in monitoring is not clear.


Inter-regional projects have a different management arrangement. During Phase I of the Urban Management Program, the WB was the executing agency and management of the program was the responsibility of the Core Team in the Bank. During Phase II, the program relied heavily for its management and implementation on the Core Team at UNCHS and the WB and four regional teams based in Africa, Asia, Middle East and Latin America. UNDP is responsible for substantive monitoring of the program at the global level. The primary mechanisms are the semi-annual Program Review Committee (PRC) meetings and monitoring missions. The PRC takes important management and operational decisions. The major oversight body is the Program Advisory Committee (PAC), composed of a senior urban management professional from each of the four regions. It meets annually to assess UMP progress and to provide advice on various aspects of the program.


The Water and Sanitation Program is strongly managed by the Water and Sanitation group in the WB while program implementation is done by the Regional Water Supply Groups. Although the program has a distinct task for the provision of water supply and sanitation to the poor, it is wrongly equated with the World Bankís principal focus on large scale water projects. The program is highly participatory and is basically a field operation. Monitoring is done through the tripartite reviews and missions.


UNDPís Non-Core Resources and Co-Financing Modalities


The present form of UNDPís non-core resources and co-financing modalities originated in the Regional Bureau for Latin America and the Caribbean (RBLAC). At a meeting of the resident representatives of the Bureau in September 1983, the future of UNDP operations in the region was discussed, given the impending reduction in IPF core funds. A determined effort was then made to mobilize funds for UNDP administration that would be additional to UNDPís IPF country budgets for the region. In October 1990, RBLAC decided to formulate and implement a resource mobilization strategy. Similar efforts were encouraged throughout UNDP.


UNDPís core funding has been declining world-wide (a reduction of $130 million between 1991/1992 and 1993/1994) while there has been a corresponding growth in non-core resources, by over 200 per cent between 1991 and 1994. Recorded commitments for the fifth programming cycle (1992-96) show that non-core funds exceed IPF resources by about 5 percent, with about 60 per cent in the LAC region. The bulk of these non-core funds come from middle-income countries through government cost-sharing, which includes funds from international financial institution (IF) loans. Available data do not separate out the amounts from IfIs e.g. the World Bank and regional banks. Although trust funds are the second largest co-financing modality, they are primarily for special situations that are not necessarily long lasting or related to a countryís development status.


There is a relationship between cost-sharing and the IPF as a corollary of a countryís development situation. Among the recipient governments that cost share, a "continental divide" is apparent between the bulk of countries in the LAC region and the rest of the world. The ratio of cost-sharing to total program cost in countries in the LAC region ranges from just over 50 percent in one of the LDCs to close to 100 per cent in upper-middle income countries. UNDP has also been able to attract significant cost-sharing in a group of middle-income countries in the Arab States and the Asia and Pacific regions.


Beyond the monetary achievements of non-core mobilization, there have been some notable accomplishments employing co-financing modalities. The evaluation shows that for example, co-financing in the LAC region has allowed UNDP to develop a relationship of trust with the host countries and build up its credibility in moments of crisis and change in a number of South and Central American countries. Although the total funding amounts for co-financing modalities have been modest in regions other than the LAC, UNDP has made a distinctive mark in its work in co-financing arrangements in countries such as Botswana, Lebanon, Mozambique, and Palestine, and in regional programs.


The mobilization of non-core resources for UNDP and its partner countries through co-financing arrangements, particularly when joined with IPF resources, provides UNDP with an important avenue for the achievement of its core mission of SHD and capacity development. Given the limited and declining core resources and their comparatively modest levels in the larger context of donor assistance, co-financing provides a means to magnify UNDPís initiatives and capitalize on the potential of its country presence and rapport with host governments. It is important to ensure that co-financing arrangements strengthen and not weaken UNDPís role in international development and that UNDP accommodates the highly varied circumstances of its partner countries world-wide.


Definition: For UNDP, co-financing is an umbrella term for the several modalities being promoted for use by UNDP country offices, namely, cost-sharing (government, IFI, bilateral), trust funds, government cash counterpart contributions (GCCC), UNDP-administered trust funds and parallel financing. The term implies two or more sources of funds joined for a common program, a situation that does not always apply when a government or donor provides 100 per cent of a projectís funding - often referred to as 100 per cent cost-sharing.


Evaluation Conclusions: Four broad policy conclusions emerge from the evaluation. They relate to an overarching policy framework; the development focus; the role of UNDP in co-financing initiatives; and criteria for assessing accomplishments. Some of the most relevant conclusions for this catalog are identified below:


1. UNDP lacks an overarching policy framework that will provide, for the agency as a whole, the structure, consistency and strategic orientation for co-financing operations that will enable it to fulfill its development mandate.


2. UNDPís development role in co-financing arrangements for SHD and the value that UNDP adds to recipient countries and donors must be fully articulated.


3. Co-financing arrangements are accentuating two distinct roles for UNDP, one in valued substantive participation and another in which UNDP serves primarily as an implementation agent. The availability of IPF funds is critical to facilitating UNDPís substantive participation since these funds serve to legitimize UNDP participation and maintain its independence and integrity.


4. The opportunities for co-financing arrangements are highly variable world-wide. Therefore it cannot be assumed that the LAC experience can be replicated although some lessons from this experience may be applicable in other countries.


5. Headquarters/country office relationships impede creativity and responsiveness in developing co-financed programs.


6. The UNDP resident representative/UN coordinator is critical to successful co-financing arrangements.


7. High volume co-financing operations strain capacities for financial accountability and limited technical expertise impedes sound substantive accountability.


Cost- sharing with governments:


This modality is particularly attractive to UNDP since it integrates outside funding into UNDPís project budgeting and accounting system. It has been exceptionally successful in Latin American countries as a means of expediting government project expenditures free of a governmentís cumbersome, distrusted procedures. The risks accompanying the use of this modality relate to dangers of abuse in creating parallel government personnel systems and the postponement of government action to strengthen its capabilities for program implementation.


Regional Experiences with Co-financing Modalities: Latin America and the Caribbean


UNDP has been able to develop a relationship of trust with the host countries in Latin America and the Caribbean, in moments of crisis and change, primarily because of its presence in the field (e.g. project relating to state reform, including the judiciary; economic policy and employment; and the social sector, (particularly the design and operation of effective education and health systems). UNDP is seen as possessing important comparative advantages in these areas in terms of its objectivity and transparency, its global access to experience and expertise and its capacity to manage complex and often cross-sectoral action. Confidence in UNDP has been boosted especially because of its network of country offices prepared to sustain a policy dialogue with their national counterparts.


Cost-sharing for the Fifth Programming Cycle: Latin America and the Caribbean


Out of a total of US $1953.4milliion in Government Cost-Sharing for the Fifth Programming Cycle, the LAC accounted for US $ 1687.9; out of a total of US $330.6 million in Bilateral Cost-Sharing, LAC accounted for US $ 134.6million; out of a total of US $54.1 million in Multilateral Cost-Sharing, LAC accounted for US $13.6;


For all the regions, (Government and IFI loans) cost-sharing arrangements account for 62 per cent of total UNDP co-financing. Bilateral donors cost-sharing account for 11 per cent, and multilateral donors cost-sharing account for 2 per cent of total UNDP co-financing. The remainder comes from Trust Funds and Government Cash Counterpart Contributions.




The Mediterranean Environmental Technical Assistance Program (METAP) was established in 1990 to bring together the Mediterranean countries to cope with and reduce the effects of environmental degradation. It is supported by the European Commission, the European Investment Bank, the United Nations Development Program and the World Bank. The METAPís first two phases have mobilized over US $1.6million for activities that identified investment projects, strengthened capacity in national and local environmental institutions, promoted sustainable environmental policy actions, and created the first professional networks in the region. Those activities have also influenced or resulted in US $1.6billion in on-going or planned investments.

The third phase of METAP was launched in October, 1996 in Cairo, Egypt. METAP III plans to mobilize US $100million to finance activities related to three priority themes:


  1. Capacity Building

  3. Arresting and Controlling Emerging Pollution

  5. Integrated Water and Coastal Resources Management


The METAP III portfolio was prepared by the beneficiary countries and includes about 75 national and regional activities. The Country Portfolios were presented to the METAP Partners and Donors at a technical implementation workshop in October, 1996. Twenty national activities for project preparation in the sectors of water, wastewater, industry and natural resource management and seven national activities for capacity building were selected as candidates for project preparation as part of the 1997 METAP III work program.


The METAP Regional Facility


The key new endeavor under METAP III is the establishment of the METAP Regional Facility in Cairo, Egypt. This innovative facility will consist of two separate units: a Project Preparation Unit (PPU) and a Capacity Building Unit (CBU). The Regional Facility is designed to transfer the implementation and management of METAP country activities to the Mediterranean region.


Project Preparation Unit


The PPU will be co-managed by and funded through the European Investment Bank, the World Bank and Switzerland. The PPUís objectives are to :


1. Assist countries in preparing investment projects, from concept to implementation, that address the three METAP priority themes

2. Build regional capacity for preparing investment projects through on-the-job training of professionals in the national organizations of the METAP beneficiary countries


3. Employ and train junior professionals from METAP beneficiary countries in project preparation and management


4. Facilitate communication and priority setting between sector ministries and the private and financial sectors in the METAP beneficiary countries.


Capacity Building Unit


The CBU will be managed by and financed through the UNDP Capacity 21 Program with financial support from Japan. The CBUís objectives are to:


  1. Assist the METAP beneficiary countries in addressing priority capacity building needs relating to environmental management

  3. Strengthen horizontal linkages between different stakeholders/ministries/agencies within the METAP beneficiary countries



3. Increase the regional exchange of information on environmental management


4. Engage civil society in the METAP activities in order to maximize public participation.


METAP Regional Initiatives


As part of the METAP III portfolio, the beneficiary countries jointly developed a set of priority regional capacity building activities to strengthen environmental institutions, promote information exchange and experience sharing, and strengthen horizontal linkages among the beneficiary countries. The METAP III Regional Initiatives are being managed by and financed through the UNDP Regional Bureaus and the World Bank. The Regional Initiatives consist of :


1. The Regional Capacity Building Program for the Environment will help countries complement their national activities by financing regional training and workshops in environmental management, economics, legislation, and conflict resolution.


2. Small Grants Facility will provide grant support for small scale innovative activities of non-governmental and community based organizations that address issues related to METAP priority themes at the local level.


3. Public-Private Partnerships for Eco-efficiency in the Mediterranean Region will expand partnership and collaboration among government, business, and community-based organizations by implementing specific pilot projects to address the METAP priority themes.


4. Program Performance Indicators and Milestones will assist countries to develop and implement a reliable framework of specific indicators and related milestones to monitor and assess the impacts of policies, programs, and project activities related to METAP priorities.


5. MED Networks are a series of networks which link various organizations and institutions around the Mediterranean. The networks are expected to be the core of the Regional Initiatives and also facilitate communication between METAP countries and other regional activities; They will receive technical support and training from METAP III.


METAP Evaluation Findings


Project Design: The Global, Interregional and Regional Programs: An Evaluation of Impact produced by the UNDP Office of Evaluation and Strategic Planning (OESP) in January 1997 found that the METAP Phase III PRODOC was well formulated, and made an effort to specify relevant performance indicators. A substantial effort was made in project design and budget to provide for project monitoring.


Building on Lessons Learned: Phase III of METAP for the Regional Bureaus for Arab States and Europe and the Commonwealth of Independent States represents a major departure in terms of objectives, stakeholder involvement and influence in decision-making, emphasis on capacity development, and decentralization of project administration and activities. The planning for that phase was conducted in a highly consultative, participatory manner and the results have been enhanced ownership and a more clearly focused project with sets of activities reflecting priorities established through in-country and inter-country consultations.


Participation and Ownership: METAP III has developed effective strategies for building national ownership and designing activities on the basis of nationally determined priorities and concerns.


Project Governance and Decision-Making: On paper, METAP III has developed a democratic governance structure, with decision-making shared among donors, national institutions, recipients, NGOs and beneficiaries. However, it appears that, in practice, major decisions are taken in Washington at the World Bank, as they were in previous phases of the project. Consultations are held with UNDP in New York and with the European Investment Bank, the major sponsors of the project. The earlier phases of the project tended towards a top-down decision-making style.


Linkages and Information-sharing: The Regional Bureau for Arab States has made strong efforts to address the linkage issue in recent years and its projects, including METAP III are well linked both to headquarters and to country offices. In this respect, the Capacity 21 Division performed a strong role in the reformulation of the project in the third phase and in strengthening the capacity development element of the project along with its participatory/consultative approach to stakeholders.


Overall Results: As an adjunct to country-based investment programs by the World Bank and the European Investment Bank, the METAP project has been quite successful, principally through its training activities. However, the results achieved so far are modest, given the size of the financial investment provided by the donors. The strong, consistent involvement by UNDP (RBAS and Capacity 21) in the preparation of phase three of METAP has brought about a much tighter focus to project objectives and has produced a much more comprehensive and relevant implementation strategy. The involvement of country teams in preparing national activity lists has also made it more likely that the project will have concrete results and a development impact in the sector. This phase has allowed UNDP to become a more proactive partner and to restructure its partnership with the World Bank.


Europe and the CIS:


UNDP Aral Sea Basin Capacity Development project (RER/94/Q14)


Background and Objectives of Collaboration

Following their independence, the five Central Asian republics - Kazakstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan - requested assistance from the international community to address the Aral Sea crisis. In January 1994, the five Heads of State approved a Programme which subsequently was supported by the donor and NGO community at the June 1994 Paris Conference. The preparatory stage of the resulting World Bank/UNDP/UNEP Aral Sea Basin Programme had four major objectives:

  1. to stabilize the environment of the Aral Sea Basin;
  2. to rehabilitate the disaster zone around the Sea;
  1. to improve the management of the international waters of the Aral Sea Basin;
  2. to build the capacity of the regional institutions to plan and implement the above programmes.


The UNDP-assisted regional Aral Sea Basin Capacity Development Project supports, with US$ 1.6 million in co-financing from the Netherlands, the overall objectives as well as selected components of the Aral Sea Basin Programme. The project is executed by OPS and its first phase covered the period July 1995 - March 1997. The key objective of this first phase was to improve the rational use of natural resources, particularly water and land, thus promoting the sustainable development of the Basin. A second, two-year phase is to start in April 1997. The total budget for the second phase amounts to US$ 2.2 million.


Mechanisms and Institutional Arrangements for Collaboration

The phase II proposal consists of three components:

  1. support to the Executive Committee of the Interstate Council for the Aral Sea (EC of ICAS), the principal regional organisation which is responsible for the implementation of the Aral Sea Basin Programme;
  2. support to the Sustainable Development Commission (SDC) and its Scientific Information Centre (SIC), a regional institution which promotes the sustainable development of the region and;
  3. the promotion of public participation and NGOs in environmental management.


Both the EC of ICAS and the SDC have been established by the five Central Asian Heads of State, who signed a number of Interstate Agreements to jointly address the Aral Sea Basin problems. The project has set up an office in the EC of ICAS which is staffed by an international Chief Technical Advisor (CTA). This expert oversees the projectís three components and acts as an advisor to the EC of ICAS. At the field-level, the World Bank and UNDP closely collaborate mostly through the EC of ICAS and, in addition, regular coordination meetings take place between UNDP and World Bank Aral Sea Units in New York and Washington.


Results Achieved

The continuous exchange of information between the World Bank, UNDP and the EC of ICAS, the principal counterpart institution, has led to an effective and well functioning coordination mechanism on the Aral Sea Basin issues. Complementarity is therefore ensured and there is practically no overlap between the activities of the different agencies. In the second phase of the Programme, the Bank is taking the lead on the investment programmes and UNDP on (supporting) capacity development activities. This mutual synergy has been achieved because of an extensive collaboration in which both agencies fully explore their comparative advantages.




The Pilot Phase: The 1992 United Nations Conference on Environment and Development (UNCED) in Rio de Janiero, known as the Rio Earth Summit, captured the growing awareness of the magnitude of environmental problems in most countries. A consensus for change towards global environmental sustainability emerged, and was endorsed as a theme for policymaking by all countries present. The Rio Summit also provided the forum for promoting the Global Environment Facility (GEF) to serve the emerging global environmental needs of developing countries. The Global Environment Facility was set up as a three-year experiment in 1990 to provide grants for investment projects, technical assistance, and to a lesser extent, research. GEF resources are to be used to explore ways of assisting developing countries to protect the global environment and to transfer environmentally sound technologies. More than 100 countries are now trying to build environmental concerns into their planning processes, and in about one-half of those nations, substantial changes in policy and investment priorities are evident. After the Brundtland Commissionís report in 1987 that there was a "serious lack of funding for conservation projects and strategies that improve the resource base for development", UNDP commissioned the World Development Institute to study the problem. One suggestion was the establishment of an international environment facility. In September 1989 the French Government, backed by Germany proposed the establishment of the Global Environment Facility at the Development Committee, a joint ministerial-level meeting of the World Bank and the IMF. The World Bank was asked to sound out potential donors and international agencies. A series of meetings held in Washington and Paris culminated in an agreement in November 1990. The first meeting of participating countries was held in Washington, D.C in May 1991. UNDP, UNEP and the World Bank were chosen to co-manage the GEF because of their complementary skills in the fields of development and the environment.


Scope and Coverage: The GEFís basic mission is to provide additional grand and concessional funding to cover the agreed incremental costs that a developing country incurs in order to achieve agreed global environmental benefits, including their obligations under a given global convention. Assistance to developing countries could be in the form of investment, policy advice, and technical assistance, and be geared to either the public or private sector. Activities under the GEF are expected to be consistent with a countryís sustainable development strategy. The GEF would focus on four focal areas of global environmental concern: climate change, biodiversity conservation, international waters, and the protection of the ozone layer. Land degradation issues, primarily desertification and deforestation, as they relate to those focal areas, would also be financed.


The Role of the Implementing Agencies: UNDP is responsible for technical assistance, capacity building, and project preparation. UNEP is responsible for strategic planning, assuring the integrity of the scientific and technical advice that guides the GEF, and ensuring that the policy framework for the GEF is consistent with conventions and related legal instruments and agreements. The World Bank manages the GEFís investment project cycle, acts as trustee, and houses the GEF Secretariat. Within each Implementing Agency, work program development and project preparation would place GEF projects within the context of country (and regional in some cases) programs. Priority would be given to integrating national and global concerns in the framework of a sustainable development strategy. The Facility would thus move towards a full partnership with recipient countries, providing longer-term support in the scientific, policy, technical, and program arenas.


The Role of the Scientific and Technical Advisory Panel (STAP):


The STAP, an independent scientific and technical advisory panel composed of recognised experts from developing and developed countries, and supported by a secretariat provided by UNEP has provided a valuable service to the Facility through its outreach to the broader scientific community, its expertise in the disciplines relevant to the Facilityís work, and its objectivity in reviewing work programs. After the pilot phase, there was a consensus that STAP should maintain a central advisory role in the GEFís strategic planning and provide scientific linkage with the global environmental conventions.


GEF I: The GEF Pilot Phase was completed in 1994, and GEF I was started. This program of $2 billion addresses global warming, biodiversity conservation, ozone depletion, and international waters. A new GEF project cycle was introduced during this time, and a comprehensive operational strategy setting priorities in the four focal areas were drafted. In parallel, draft guidelines on social assessment in GEF and Montreal Protocol projects have been prepared to guide project designers. As of July 1995, the GEF Council has endorsed World Bank Group financing (using GEF resources) of sixty-three projects, totaling US $557 million, of which fifty-two projects ($454million) were from the pilot phase, and eleven projects ($103 million) from GEF I.


UNDPís Institutional Role: UNDP will play a key role in ensuring that the strategic planning maximises the complementarity between developmental and environmental concerns. It will organise appropriate studies and assessments to serve as a basis for these strategies, and will help organise technical assistance, institutional building and training activities needed to create and implement them. UNDP will play the lead role in coordinating with each countryís human resources development strategy and action plan. In both these areas, UNDP has extensive experience, and will identify and develop programs, working in close cooperation with UNEP and the World Bank. It will be involved in extending the country-specific frameworks in those countries where it is already offering technical assistance to develop environmental strategies and action plans. With its expertise and extensive field presence in developing countries, UNDP will participate in the investment project cycle, especially in the early phases of identification of investment opportunities. The UNDP Resident Representative will play a key role in coordinating activities at the country level and in ensuring that the program being undertaken by the GEF are complementary with other development activities.


The World Bankís Institutional Role: The World Bank will serve as the Trust Fund Administrator. In this capacity, the World Bank will convene periodic meetings with the agencies to review progress and any operational problems which may arise. In those countries where the World Bank has already assisted the Government in preparing National Environment Programs or where these are under preparation, the Bank will seek to broaden these to encompass the areas covered by the GEF. The project cycle involve participation of all three agencies. The World Bank will organize the project identification, appraisal, and supervision process with UNDP and UNEP participation. The time-table for processing individual investment projects will be the critical input into decisions on the timing and content of scientific and technological support and technical assistance operations.


UNDP in GEFís Current Activities: The eighth GEF Council meeting was held in Washington 8-10 October 1996. The Council approved UNDPís US $50.5 million work program (seven national projects in Bhutan, Jordan, Madagascar, Bulgaria, Ghana, Russia, and Syria, and three regional projects in the Danube River Basin, the Black Sea, and Central America). Two initiatives are of special note: Supply-Side Efficiency and Energy Conservation and Planning (US $ 4.07 million) in Syria and the Central American Fund for Environment and Development: Account for the Global Environment ($15million). The Syria project leverages a significant investment component in the regions, and the Central American Fund was highlighted several times for its innovative nature.


The corporate GEF business plan for the three-year period of 1998, 1999 and 2000 was presented to the Council, which noted that figures for allocation resources beyond those available in the present replenishment cycle can be viewed only as indicative planning figures that do not prejudge the next replenishment of the GEF Trust Fund. UNDPís planning assumption for 1998 is a portfolio of US $ 150 million.


A complete set of brief descriptions of all GEF Pilot Phase and GEFI investment projects managed by the World Bank Group that were approved between July 1, 1994 and June 30, 1995 can be found in Annex D: Global Environment Facility (GEF) and Multilateral Fund for the Implementation of the Montreal Protocol (MFMP) Investments Approved in Fiscal 1995, by country, in the document titled "Mainstreaming the Environment", the World Bank Group and the Environment since the Rio Earth Summit, Fiscal 1995, The World Bank, Washington, D.C. 1995.






1. The Evaluation of the Impact of UNDPís Regional, Inter-Regional and Global Program, Africa Region, Final Report. Fantu Cheru, Consultant, October 4, 1996.


2. An Evaluation of the UNDP-World Bank Water and Sanitation Program, Report of an Independent Team, February 1996.


3. Tripartite Review of RAF/92/007: Water Supply and Sanitation for the Poor in Sub-Saharan Africa, Report of review meetings held in Nairobi, Kenya on September 28-29, 1995 and Abidjan, Cote díIvoire on October 2-3, 1995, Draft November 21, 1995.


4. World Bank/UNDP Cooperation: A Synopsis UNDP, Mimeo, 7 pages, Jan. 1997.


5. Sjoberg, Helen, From Idea to Reality: The Creation of the Global Environment Facility, Working Paper Number 10, The Global Environment Facility, 1994.


6. The GEF and the Evaluation: Learning from Experience and Looking Forward, A Background Note for the GEF Participants Meeting, Cartegena, Colombia, Dec.2, 1993.


7. Global Environment Facility: The Pilot Phase and Beyond, Working Paper Series, Number 1, May 1992.


8. Mainstreaming the Environment: The World Bank Group and the Environment since the Rio Earth Summit, Fiscal 1995. The World Bank 1995.


9. UNDP Evaluation Findings in 1995, OESP Series on Lessons Learned, OESP 1996.


10. Global, International and Regional Programs: An Evaluation of Impact, Evaluation Team (Phillip Rawkins, Team Leader), OESP, November 27, 1996.