Cooperation between the World Bank and NGOs FY96 Progress Report

NGO Group Social Development Department

August 1997

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TABLE OF CONTENTS EXECUTIVE SUMMARY I. INTRODUCTION i II. OPERATIONAL COLLABORATION 1 Quantitative Summary of Bank-NGO Operational Collaboration 2 Regional trends 3 Sectoral trends 3 Nature of NGO involvement 5 Type of NGO 6 Effectiveness of NGO Involvement 7 Promoting Enhanced Bank-NGO Collaboration 9 Strengthened capacity for NGO liaison at the field level 9 Sharing lessons learned 11 NGO capacity-building initiatives 12 Social funds 13 Funding for NGOs and NGO-related activities 13 III. RESEARCH AND ANALYSIS 16 Country Assistance Strategies 17 Participatory Poverty Assessments 18 Sectoral Studies and Research 18 Environmental and Social Assessments 19 Joint Review of Structural Adjustment Programs 19 Study on NGO Involvement in Bank-supported Projects 20 NGO-State Relations 21 NGO Law 21 IV. POLICY DIALOGUE 22 Mr. Wolfensohn's Interactions with NGOs 22 Gender 22 Social Development 23 Participation 23 Environmentally Sustainable Development 24 Consultative Group on International Agricultural Research 24 Conversion of World Bank Operational Directives 25 Debt 25 Information Disclosure 25 NGO-World Bank Committee 26

ANNEXES List of Figures Figure 1 - Projects with NGO Involvement as a Percentage of Total Projects (FY73-FY96) Figure 2 - Projects with NGO Involvement as a Percentage of Total Projects Approved per Region (FY93-FY96) Figure 3 - Distribution of NGO-associated Projects by Sector (FY96) Figure 4 - Projects with NGO Involvement as a Percentage of Total Projects by Sector (FY90, 95 and 96) Figure 5 - Nature of NGO Involvement in Bank-financed Projects (FY96) Figure 6 - Type of NGOs Involved in Bank-financed Projects (FY92-FY96) List of Annexes 1. Project Summaries: Selected FY96 World Bank-financed Projects Involving NGOs 2. Case Studies: Impact of NGO Involvement in World Bank Financed Project 3. List of FY96 World Bank-financed Projects Involving NGOs 4. List of NGO-World Bank Committee Members, 1996 5. List of Resident Mission NGO Liaison Officers 6. Glossary

EXECUTIVE SUMMARY 1. This is the fourteenth annual progress report on cooperation between the World Bank and non-governmental organizations (NGOs) in the areas of operational collaboration, research and analysis and policy dialogue. The report is prepared annually by the Bank's coordinating office for Bank-NGO relations, the NGO Unit. The major functions of the Unit, in cooperation with staff in the regions and resident missions, include: i) facilitating operational collaboration between the Bank and NGOs (including monitoring collaboration and disseminating lessons learned); ii) promoting constructive Bank-NGO policy dialogue; iii) providing information to Bank staff about NGOs and NGO-related issues; iv) responding to requests for information from NGOs, and; v) helping foster a more positive policy environment for NGOs in developing countries. 2. Fiscal year 1996 (FY96) has been a significant one in terms of Bank-NGO relations. Important trends and developments have included: i) unprecedented interaction between the World Bank’s president and NGOs, due to Mr. Wolfensohn’s deep interest and support for civil society; ii) increased emphasis on liaison and operational collaboration with NGOs in developing countries (in particular, through the appointment of NGO liaison officers in World Bank resident missions); iii) mechanisms for more systematic policy dialogue between NGOs and the Bank; iv) greater emphasis on helping governments improve the policy environment for and strengthen their links with civil society (in particular through efforts to liberalize and make less arbitrary laws governing NGOs). Operational Collaboration 3. Of the 256 projects approved by the Board of the World Bank in FY96, a total of 122 (approximately 48%) included some provision for NGO involvement. This figure must be treated with some caution since NGO involvement is sometimes only minor, or limited to one small component of the project. That said, this figure indicates one of the highest levels of NGO involvement in Bank-financed projects since the Bank began monitoring these figures in 1973. Other indicators reveal a deepening of NGO involvement as well as an increase in the overall number of projects which include NGOs. 4. The highest levels of NGO collaboration took place in South Asia and Sub-Saharan Africa where, respectively, 76% and 56% of all projects approved included provisions for NGO involvement. Sectorally, levels of NGO involvement were highest in agriculture (92%) and social sector (88%) projects. As in previous years, NGO involvement was most frequent during the implementation (65%) and operation and maintenance (73%) stages of the project cycle. In 43% of cases, however, NGOs were also involved in project design. Among FY96 projects with NGO involvement, 53%

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involved existing community-based organizations (CBOs), 16% involved newly created CBOs, 74% involved national in-country NGOs and 15% involved international NGOs. 5. To promote collaboration with NGOs, the Bank has strengthened NGO liaison at the field level. Thirty-four resident missions have now appointed a staff member whose principal responsibility is NGO liaison/collaboration and related social development, and most other resident missions have assigned part-time responsibilities for NGO liaison to an existing staff member. To improve operational cooperation, the Bank has also organized opportunities to share lessons learned, disseminated best practice on Bank-NGO collaboration, supported NGO capacity-building and continued to fund a number of mechanisms for making grants to NGOs. Research and Analysis 6. An important trend in recent years has been increased NGO involvement in Bank-supported research and analytical work. The Bank's various forms of Economic and Sector Work (ESW) have allowed the institution both to broaden its knowledge of NGOs and to collaborate with NGOs in undertaking research on a broad range of development issues. In particular, NGOs have played an increasingly important role in the preparation of Country Assistance Strategies, national poverty assessments and project-level environmental and social assessments. These initiatives often offer new opportunities for government-civil society dialogue on important questions of development policy. During FY96, preparations began for carrying out a joint Bank-civil society review of structural adjustment programs. The Bank also began preparations for an evaluation of the operational impact of NGO involvement in Bank-financed projects and conducted a number of studies on issues related to NGO legislation and NGO-State relations. Policy Dialogue 7. In addition to collaborating with the Bank in operations and research, NGOs play an important role as advocates for policy change and institutional reform . The Bank increasingly exchanges information, ideas and experiences with NGOs and consults with NGOs on key issues of mutual concern. Important recent trends in policy dialogue have been i) increased emphasis on consultations with NGOs in developing countries and ii) the creation of structures for more systematic policy consultations with NGOs. Of particular note in FY96 was the creation of an External Gender Consultative Group and the formation of an NGO Focus Group to assist the work of the Bank's Social Development Task Force. In his first year as World Bank president, Mr. Wolfensohn engaged in an unprecedented level of interaction with NGOs, meeting on numerous occasions with both international and developing country NGOs to discuss, among others, issues related to gender, poverty, the environment and structural adjustment. Other key themes of Bank-NGO policy dialogue in FY96 included social development, popular participation, debt, and information disclosure.

I. INTRODUCTION 1. This is the fourteenth annual progress report on cooperation between the World Bank and nongovernmental organizations (NGOs). The report is prepared annually by the Bank's central coordinating office for Bank-NGO relations, the NGO Unit. 1 The major functions of the Unit, in cooperation with staff in the regions and resident missions, include: i) facilitating operational collaboration between the Bank and NGOs (including monitoring collaboration and disseminating lessons learned); ii) promoting constructive Bank-NGO policy dialogue; iii) providing information to Bank staff about NGOs and NGO-related issues; iv) responding to requests for information from NGOs, and; v) helping foster a more positive policy environment for NGOs in developing countries. 2 2. This report is intended to keep Bank management and staff, NGO representatives, government officials and other interested parties informed of trends, highlights and key developments in Bank-NGO relations. This report covers the period from July 1995 to July 1996 (the Bank's fiscal year 1996). 3 Three key aspects of Bank-NGO relations are reviewed: operational collaboration, NGO involvement in research and analysis, and policy dialogue. 3. Fiscal year 1996 has been a significant one in terms of Bank-NGO relations. Among others, the four following trends stand out as important and path-breaking: i) unprecedented interaction between the World Bank’s president and NGOs, due to Mr. Wolfensohn’s deep interest and support for civil society; ii) increased emphasis on liaison and operational collaboration with NGOs in developing countries (in particular, through the appointment by key regions of NGO liaison officers in World Bank resident missions); iii) mechanisms for more systematic policy dialogue between NGOs and the Bank; iv) greater emphasis on helping governments improve the policy environment for and strengthen their links with civil society (in particular through efforts to liberalize and make less arbitrary laws governing NGOs).

1 The NGO Unit is currently within the Participation and NGO Group, located in the Poverty and Social

Policy (PSP) Department of the Human Capital Development Vice Presidency (HCDVP). 2 For more information concerning the ongoing activities of the NGO Unit and Bank-NGO relations more

generally, see The World Bank's Partnership with Nongovernmental Organizations, published by the NGO Unit in May 1996.

3 Last year's Progress Report (for FY95) was published in conjunction with a paper which examined NGO-Bank relations more generally and provided recommendations to strengthen and facilitate the evolving relationship between NGOs and the Bank. This paper was submitted to the board of the World Bank in June 1996.

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II. OPERATIONAL COLLABORATION 4. Operational collaboration represents the foundation of NGO-Bank relations. While the Bank's primary partners continue to be borrowing governments, NGOs are increasingly involved in the identification, design, implementation and evaluation of Bank-financed activities. The Bank’s experience indicates the benefits of government-NGO-Bank collaboration, in particular, when initiated upstream in the project process. Over recent years, as the incidence of operational partnership has risen steeply, it has become increasingly evident that such partnerships can improve beneficiary participation and project sustainability and help to ensure that project objectives respond to beneficiary needs.

Quantitative Summary of Bank-NGO Operational Collaboration in FY964 5. Of the 256 projects approved by the Board of the World Bank in FY96, a total of 122 (approximately 48%) included some provision for NGO involvement. 5 This figure must be treated with some caution since the projected NGO involvement is sometimes only minor or limited to one small component of the project. That said, this figure does represent one of the highest levels of NGO involvement in Bank-financed projects ever recorded. From FY73-FY88, NGOs were involved, on average, in only 6% of Bank-financed projects. Since FY89 there has been a steady rise in levels of NGO involvement. This increase can be attributed to the Bank's growing emphasis on promoting participatory development, its continued efforts to promote outreach and collaboration with NGOs, and the relatively high number of projects approved in those sectors in which NGOs are most active (e.g. agriculture, education, health and social development).

4 The statistics used in this section are derived from Staff Appraisal Reports (SARs), which indicate the intended involvement of NGOs, but from which the actual scope, depth and quality of involvement on the ground are difficult to discern. The statistics provide a useful picture of overall trends overall trends and progress over time, but include projects where NGO involvement is very slight as well as those based on a more profound partnership. 5 These projects are listed in Annex 2.

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a) Regional trends 6. Figure 2 shows the percentage of projects with NGO involvement by region. As in previous years, the highest levels of NGO collaboration in FY96 were in South Asia, Africa and Latin America and the Caribbean (LAC) where, respectively, 76%, 55% and 48% of all projects approved included provisions for NGO involvement. Also of note, is the substantial increase in the percentage of NGO-associated projects in Europe and Central Asia (ECA) and Middle East and North Africa (MENA), regions which have been characterized by relatively low levels of NGO involvement in the past. b) Sectoral trends 7. The sectoral distribution of projects with NGO involvement in FY96 has remained consistent over the past several years, with the majority of NGO-associated projects being in the agriculture, education, health and social sectors. In FY96, these four sectors accounted for over 60% of all NGO-associated projects. A full sectoral breakdown of FY96 NGO-associated projects is illustrated in Figure 3.

Figure 1. Projects with NGO Involvement as a Percentage of Total Projects, FY73-96

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8. Another important measure is the number of projects with NGO involvement as a percentage of total projects approved by sector. Figure 4 shows that 90% of all agriculture projects and 82% of all social sector projects approved in FY96 had provisions for NGO involvement.

Figure 2. Projects with NGO Involvement as a Percentage of Total Projects Approved per Region, FY93-96

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Figure 3. Distribution of NGO-associated Projects by Sector, FY96

Agriculture28%

PSM3%

Social11%

Transportation4%

Water Supply5%

Urban Development6%

Education12%

Mining 4%

Multisector 6%

Oil & Gas 1%

Elec. Power3%

Environment 3%Finance 2%

Industry 1%

PHN11%

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c) Nature of NGO involvement 9. Figure 5 illustrates a breakdown of different forms of NGO involvement, which correspond roughly to the various stages of the project cycle. Traditionally, NGO involvement has been most significant during project implementation and maintenance stages. This remains true in FY96. In recent years, increasing emphasis has been placed on the importance of involving NGOs early on in the project cycle, thus giving them greater opportunity to influence project objectives and design, and allowing them to participate in defining the terms of NGO involvement later on in the project cycle. Figure 5 shows that a significant number of NGO-associated projects (42%) involved NGOs during design phases.

Figure 4. NGO-involved Operations as a Percentage of Operations Approved per Sector, FY90-96

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Education

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Electric power & other energy

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Figure 5. Nature of NGO Involvement in Bank-financed Projects (FY96)

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d) Type of NGO 10. Since the late 1980s, the Bank has placed emphasis on engaging local-level NGOs in the activities it finances. These organizations often have an in-depth understanding of local conditions, as well as local language skills and first-hand knowledge about the needs and interests of poor communities. Cooperation with developing country NGOs, both at the national and grassroots level has increased steadily in recent years. As shown in Figure 6, among FY96 projects with NGO involvement, 53% involved existing community-based organizations (CBOs), 16% involved newly created CBOs, 74% involved national in-country NGOs and 15% involved international NGOs.

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Impact of NGO Involvement on Bank-financed Projects 11. The increasing involvement of NGOs in Bank projects, illustrated in the

preceding sections, reflects a growing desire for partnership with organizations which work at the community level. While the Bank has long tabulated statistics regarding the extent of NGO involvement, only recently has it been possible to analyze evidence as to whether such involvement can be associated with better (or worse) project performance. This new evidence reveals a strong correlation between project performance and NGO involvement in sectors where NGO involvement has been historically more prevalent. 12. Each year the Bank’s Annual Report on Portfolio Performance (ARPP) provides performance ratings based on Implementation progress (IP), Development Objectives (DO) and ”projects at risk” categories. 6 These statistics for the end of FY96 were correlated with NGO involvement in projects. Out of a total of 1,752 projects under implementation, 606 projects involved NGOs in some capacity, while 1,146 did not. For the portfolio as a whole, the analysis showed that projects involving NGOs were somewhat less likely to have unsatisfactory ratings in meeting development objectives, or to be found at risk (see Table 1. a).

6 The ARPP’s performance ratings are designed to track the development effectiveness of Bank projects by

flagging those projects with existing or potential problems in implementation. Projects are regularly rated on performance in implementation progress (IP), meeting development objectives (DO), and as “potential problem” projects. The “at risk” rating, is the aggregate of the IP, DO and potential problem projects, listed as a percentage.

Figure 6. Type of NGOs Involved in Bank-financed Operations, FY91-96

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Table 1. a Performance Ratings for Problem Projects with and without NGO Involvement

Performance Rating with NGO involvement

with no NGO involvement

Implementation Progress 16% 16% Development Objectives 9% 12%

“projects at risk” 30% 36%

13. Traditionally, NGOs are involved in Bank activities in two ways: i) to provide services or to implement project components for which they have a comparative advantage in technical skills or local knowledge, or ii) to mitigate negative aspects of the project associated with risks, or play an advocacy role. In the first case, the involvement of NGOs would be expected to contribute to project effectiveness, where as in the second, the involvement of NGOs is more likely to occur with riskier projects. 14. In sectors where NGO involvement is traditionally high - Agriculture, Population-Health and Nutrition (PHN) and Social - for the most sensitive “at risk” rating, NGO- involved projects consistently out-perform projects without involvement of NGOs. (see Table 1. b) Taken together, projects without NGO involvement in these sectors are significantly more likely to be at risk as those with NGO involvement (46% to 27%). Table 1. b Projects at Risk By Sector Project

Type AGR PHN SOC Total

with NGO involvement

27% 30% 23% 27%

no NGO involvement

48% 40% 38% 46%

15. Further this pattern holds for Agriculture and PHN in virtually in each region, with the exception of PHN in South Asia (SA) and LAC. That is, within each region, projects with NGO involvement in the agriculture and PHN sectors appear to fare as well or better than projects without any NGO involvement (see Table 1. c). For projects in the social sector, the pattern appears to be misled - but this is because of the small sample, due to the small number of projects with performance problems in this sector. 16. In the sectors of Industry, Oil and Gas, Mining, Pollution Control, Urban Development and Privatization, NGO involvement appears to be associated with higher project risk. However, it is postulated that NGOs are involved in such projects precisely because of the risk associated with implementation.

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Table 1. c Percentages of Projects at Risk by Sector and Region Project AFR ECA EAP Type AGR PHN SOC AGR PHN SOC AGR PHN SOC with NGO involvement

28% 43% 33% 22% 0% 14% 12% 8% 0%

no NGO involvement

59% 67% 67% 67% 43% 33% 15% 11% 0%

Project LAC MNA SAS Type AGR PHN SOC AGR PHN SOC AGR PHN SOC with NGO involvement

36% 40% 23% 36% 0% 0% 28% 25% 100%

no NGO involvement

62% 38% 0% 48% 56% 0% 37% 0% 0%

17. In sectors that utilize NGO expertise in public awareness, training, technical assistance, and management at the local level - there appears to be a positive correlation between NGO involvement and project performance. The ratings show that projects involving NGOs in Forestry, Urban and Rural Water Supply and Sanitation, Housing, Transportation, Irrigation and Drainage, and Solid Waste Management, out perform projects that do not utilize NGO expertise. 18. Clearly a multitude of factors influence the ARPP ratings, but the consistent positive trends noted above, support the basic assumptions concerning the value of involving NGOs in Bank activities, and indicate the need for further research. Promoting Enhanced Bank-NGO Collaboration 19. To promote enhanced collaboration with NGOs, the Bank has strengthened NGO liaison at the field level, organized opportunities for the Bank and NGOs to share lessons learned, disseminated best practice on Bank-NGO collaboration and supported NGO capacity-building. The Bank also continues to fund a number of mechanisms for making grants to NGOs. a) Strengthened capacity for NGO liaison at the field level 20. An important development in FY96 was the appointment of NGO liaison officers/participation specialists in a large number of World Bank resident missions (RMs). In the two Asia regions, some RMs already had social development staff dealing with issues including NGOs. During FY96, new full-time NGO/participation posts were created in each Latin American RM and most African RMs appointed full or part-time NGO liaison officers. A number of RMs in Europe and Central Asia have very recently assigned part-time NGO liaison tasks to existing staff. Thirty-four RMs now have a staff whose

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primary responsibility is NGO liaison and approximately 15 other RMs have assigned NGO responsibilities to existing staff. 21. While the specific terms of reference of these new staff members varies from country to country, key NGO liaison functions include: serving as a point of contact for NGOs and other civil society organizations; gathering and maintaining information about the NGO sector; disseminating information on Bank activities; facilitating policy dialogue between NGOs, the Bank and government; promoting and supporting NGO involvement in the Bank's research, analysis and lending programs; promoting participatory techniques, and; working with government to ensure an enabling environment for NGOs. 22. Creation of these posts has served to improve information flows between the Bank and NGOs and to ensure more systematic in-country consultation and dialogue. Many resident missions now hold regular meetings with NGOs on a variety of sectoral issues and a growing number of RMs have established Public Information Centers (PICs) or improved mechanisms for information dissemination. 7 Regular reports submitted by NGO liaison officers help to keep Bank staff in headquarters informed of issues, initiatives and activities at the field level. During FY96, a number of in-country operational workshops on NGO involvement in the project cycle were held, for example, in Bangladesh, India and Indonesia. In a number of countries, NGO liaison officers have also carried out NGO sector assessments, facilitated NGO participation in the preparation of Country Assistance Strategies, and contributed advice and assistance in the drafting of NGO legislation. 7 23. Another trend in recent years has been the growing number of in-country, project-specific consultations with NGOs (normally organized by project staff in conjunction with the RM). For example, during FY96 a series of meetings at the local level regarding resettlement compensation and the future of resettled groups were held in the context of the India Coal Sector Social Mitigation Project. In Bangladesh, a number of meetings were organized with NGOs and other stakeholders to discuss the Flood Action Program. In Brazil, in June 1996, a Mid-Term Review Evaluation workshop, involving government, donor and NGO representatives was held to discuss the future of the complex and problematic PLANAFLORO project in the state of Rondonia. The workshop led to a successful negotiating process between the state government and local NGOs which will allow for a complete re-structuring of the project, making it more decentralized and demand-driven and increasing NGO participation in decision-making.

7 Refer to paragraph 62 for more information on Information Disclosure.

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b) Sharing lessons learned 24. Bank-NGO operational collaboration continues to present many challenges. In order to learn from past experience and to enhance future collaborations, the Bank continually seeks to gather and disseminate lessons learned and to create opportunities for exchanges with NGOs on operational issues. 25. For example, during FY96, the World Bank-NGO Alliance on Children was established to explore opportunities for Bank-NGO operational collaboration in sectors concerning children's well-being. The Alliance, made up of representatives from four major international NGOs concentrating on children's issues and relevant Bank staff, met for the first time in December 1995 and will continue to meet on a periodic basis to explore ways in which NGOs and the Bank can work together to address issues such as early childhood development, HIV/AIDS and girls' education. 26. The majority of Global Environment Facility (GEF) projects implemented by the Bank involve NGOs and a number include grant components for NGOs. 8 During FY96, a series of meetings were held with NGO representatives to discuss guidelines of GEF Bank-implemented projects and to seek ways of promoting NGO collaboration. An in-depth study of the use of social assessment in three Bank-GEF biodiversity projects was completed in FY96 9 and a review of stakeholder identification and participation in the GEF portfolio was conducted. The findings of this review, which reported an increase in upstream NGO involvement and increased use of local-level small grants facilities, have contributed to dialogue with NGOs and to the development of good practice pointers. 27. In April 1996, a two-day workshop was organized jointly by the World Bank office in Paris and Coordination Sud (a coalition of French development NGOs) bringing together Bank staff and NGOs to share information regarding operational collaboration and, in particular, to critically examine a number of examples of previous and on-going Bank-NGO partnerships in order to identify challenges, benefits and lessons learned. A number of background papers and case-studies were prepared by Bank staff and NGO participants for this purpose. 28. In June 1996, a paper entitled NGOs and the Bank was published by the NGO Unit and distributed to the Board. It examines the evolution of “the NGO phenomenon” with regards to the Bank, and explores how the current relationship could be strengthened regarding both operational collaboration and dialogue on policy issues. The paper also incorporated the FY95 progress report. Also in June 1996, the NGO Unit published a

8 Examples of FY96 GEF projects with NGO involvement include: the West Africa Community-Based

Natural Resource and Wildlife Management Project; the Mauritius Biodiversity Restoration Project, and; the (global) Small and Medium Scale Enterprise Fund.

9 This study, entitled Social Assessment in World Bank and GEF-Funded Biodiversity Conservation Projects: Case Studies from India, Ecuador and Ghana, is available from the Social Policy and Resettlement Division of the Environment Department

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working paper entitled NGO-World Bank Partnerships: A Tale of Two Projects. This report examines the experience of NGO involvement in two Bank-financed projects, the Program for the Alleviation of Poverty and the Social Costs of Adjustment (PAPSCA) in Uganda and the Fourth Population and Health Project in Bangladesh, and seeks to draw lessons which can be applied to future operational partnerships. The report makes a number of recommendations underlining, for example, the importance of: clearly defining the purpose of NGO involvement; evaluating the capacity of NGO partners, paying special attention to appropriate procurement and disbursement procedures, and ensuring flexible mechanisms to facilitate community participation. 29. Another effort to enhance exchanges between NGOs and Bank staff on operational issues has been a series of country-specific focus group discussions launched by the NGO Unit in FY96. These discussions aim to bring together visiting NGO resource people from developing countries with relevant operational Bank staff to discuss issues related to Bank-NGO collaboration, NGO-State relations, etc. in the given country context. One focus group discussion was organized between Bank staff and visiting NGO representatives from Bangladesh. Discussions for West Bank and Gaza, Pakistan, Sri Lanka and Malawi have been planned for FY97. c) NGO capacity-building initiatives 30. Since the late 1980s, the Economic Development Institute (EDI) - the World Bank's training and learning branch - has steadily expanded its interactions with NGOs. EDI invites NGOs to participate in many of the training activities it supports and, at times, draws on NGOs to design and deliver programs. EDI also supports a number of initiatives aimed specifically at NGO institutional development and capacity-building. 31. Since 1991, EDI has supported the FICONG (Fortalecimiento Institucional y Capacitacion para Organizaciones non Gubernamentales) program which aims to strengthen NGOs working in urban poverty and to facilitate more NGO-government dialogue on urban sector issues. During FY96, FICONG organized 50 activities in 13 countries effectively linking more than 100 NGOs in the region. Activities involved workshops and seminars dealing, for example, with legal frameworks for NGO operations, the reform of urban policies and decentralization. FICONG organized an exhibition of NGO work during the Bank's Annual Conference on Economic Development in Latin America. It also participated in the Habitat II summit held in Istanbul. 32. During FY96, EDI carried out an evaluation of the first phase of its West Africa NGO Program and developed an action plan to expand and deepen the program over the next three years. The program was initiated in 1991 with the goal of "developing a methodology to enhance the capacity of NGOs in developing countries to successfully participate in poverty-alleviation actions". Since its inception, the program, in collaboration with a West African partner institution, (IRED), has developed training manuals on NGO Strategic Planning and Management and has undertaken the training of trainers with over 100 people in Benin, Burkina Faso, Mali and Niger.

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33. For the past several years, EDI has supported two women's management training pilot projects - the Women's Management Training Outreach Program (WMTOP) which aimed to strengthen the capacity of NGOs and national training organizations to provide management training to women in Burkina Faso, Nigeria and Senegal, and the Women's Enterprise Management Training Program (WEMTOP) which worked through approximately 30 NGOs to design and deliver management training to enhance the income-generating capability and self-reliance of women entrepreneurs in India. In FY96, both of these pilot projects were completed. Once they have been fully evaluated, these experiences may be replicated elsewhere and their lessons applied to other Bank-financed activities. 34. Partnership for Poverty Reduction is a new initiative supported by the EDI that seeks to promote new partnerships between the public, private and civil sectors for the reduction of poverty in Latin America. Past experiences of collaboration between these three key sectors have already produced positive results in the region. The multiplication of such initiatives is inhibited, however, by a lack of information on innovative programs and best practices and the institutional infrastructure needed to establish new partnerships is still very weak. The Partnership for Poverty Reduction program aims to address those constraints by: (i) identifying and widely disseminating information on such experiences throughout the region; (ii) helping establish a network of regional institutions that will take the lead in promoting and facilitating new partnerships; (iii) giving public recognition to some of the most innovative initiatives through awards and public information campaigns; and (iv) contributing to the development of good practice guidelines. The program is starting as a pilot in Argentina, Colombia, El Salvador, Jamaica and Venezuela with the support of the Inter-American Foundation, the UNDP and an active role on the part of the Bank Resident Missions. 35. EDI is currently developing a program called Learning and Action to Mainstream Participation (or LAMP) which aims to mainstream within the development community gender-inclusive participatory approaches which empower the poor and marginalized. The program will facilitate the documentation and dissemination of lessons of experience with participatory approaches and support country-level training and learning workshops aimed at introducing participatory processes into key development initiatives. The guiding principles of the LAMP program will be to: strengthen partnerships between government, donors and NGOs; encourage joint learning, and; facilitate the inclusion of poor and marginalized groups by promoting approaches which enable their voices to be heard in the design and implementation of development assistance programs. LAMP will collaborate closely with NGOs, in particular, in the documentation of participatory experiences and in the development of country-level networks and training events. d) Social funds 36. One of the most promising mechanisms for Bank-NGO collaboration are the increasing number of social fund-type projects financed by the Bank. Social funds are

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designed to finance small-scale, demand-driven subprojects in the areas of social and economic infrastructure, education, health, sanitation. In addition to NGO involvement in the implementation of social funds (i.e., designing and implementing subprojects or assisting communities to do so), there are a growing number of examples of NGOs contributing to the design of social funds, sitting on social fund boards and serving on committees that select, monitor and evaluate subprojects. 37. During FY96, a number of initiatives were undertaken to assess and promote NGO involvement in Bank-financed social funds. In November 1995, the Bank co-sponsored a seminar on NGO Involvement in Central American Social Funds. NGO representatives and social fund staff from El Salvador, Guatemala, Honduras, Nicaragua and Panama participated in the seminar (which was held in Honduras) and prepared background papers regarding the NGO-social fund relationship, from the perspective of both parties, in each country. The seminar, which also included government and donor representatives resulted in a number of concrete recommendations for enhanced NGO participation in social funds in the region. Social funds have been identified as a key area of interest by the NGO Working Group on the World Bank, which will collaborate with Bank staff in organizing a global conference on the subject in FY97. During FY96, the Bank approved new social fund projects in Argentina, Armenia, Eritrea, Ethiopia and Malawi and extended existing social funds in Egypt, Honduras, Madagascar and Nicaragua. f) Grants for NGOs and NGO-related activities 38. In addition to collaboration with NGOs in the context of its lending activities, the Bank has introduced a number of special programs whereby resources are channeled to NGOs in the form of grants. Special Grants Program 39. The Bank's Special Grants Program finances regional and global programs and activities that are important to the development process and complementary to the Bank's operational work. Applications for grants are prepared and submitted by Bank task managers who have identified an activity for support. While most of the grants are made to research institutions, UN agencies, or for specific regional initiatives, some of the grant recipients are NGOs. In FY96, approximately $5.34 million was disbursed to NGOs by the SGP. A number of vehicles whereby the SGP channels resources to NGOs are described below. 40. The Bank's Small Grants Program funds activities to promote dialogue and dissemination of information about international development among diverse audiences including NGOs, academia, government, business and the media. The program makes small grants (in the range of $10,000 to $15,000) to support conferences, seminars, publications, networking activities and other information-related activities. Sectors of priority interest include: environment/sustainable development, human resource development, development education, economic policy, participatory development and

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NGOs, private sector development and indigenous peoples. In FY96, the Small Grants Program disbursed a total of $600,000. As of FY97, the Program will focus exclusively on developing country initiatives (in FY96, developing country organizations received 89% of grants). 41. The Safe Motherhood Special Grants Program provides funding for maternal health advocacy, research and interventions. In FY96, it disbursed a total of $800,000 to international organizations and NGOs. The Population NGOs Special Grants Program seeks to identify and strengthen the capacities of small, grassroots NGOs working in population-related fields and funds initiatives that exemplify new, integrative approaches to demand creation and service delivery. $850,000 was disbursed in FY96, with priority given to improving family planning programs and realizing linkages between social development and fertility decline. In FY96, a new program called the Female Genital Mutilation and Adolescent Reproductive Health Special Grants Program was introduced. It disbursed $450,000 in its first year to NGOs and other organizations working to eliminate the practice of female genital mutilation and to promote adolescent reproductive health. During FY96, the Special Grants Program also provided funding to the NGO Forum of the Fourth Global Conference on Women in Beijing and made grants to NGOs in the context of the Global Micronutrient Initiative, among others. Consultative Group to Assist the Poorest - A Micro-finance Program 42. The Consultative Group to Assist the Poorest (CGAP) was officially constituted in June 1995. CGAP is a multidonor effort to systematically increase resources in micro-finance to broaden and deepen the success of the work done by pioneer institutions in this field. Representatives from a number of leading NGOs in the field such as the Grameen Bank, ACCION, Women's World Banking and SEWA are members of the CGAP Policy Advisory Group. The objectives of CGAP are to: (i) strengthen donor coordination in the field of micro-finance; (ii) increase learning and dissemination of best practice for delivering financial services to the poor on a sustainable basis; (iii) mainstream micro-finance within World Bank operations; (iv) create an enabling environment for micro-finance institutions; (v) support micro-finance institutions that deliver (or are capable of delivering) credit and/or savings services to the very poor on a financially sustainable basis; and (vi) help established providers of micro-finance to assist others start such services in under-served regions. Member donors have jointly pledged roughly $200 million to the CGAP portfolio. The majority of that funding is being administered directly by the participating member donors. The World Bank's cash contribution of $30 million is the basis of a three-year "core-fund" that will be administered by the CGAP Secretariat to support eligible micro-finance institutions. In FY96, CGAP approved grants totaling $3.3 million to institutions and projects. CGAP publications (including the CGAP Newsletter, Focus Notes series and application forms) can be accessed on the World Wide Web at http://www.worldbank.org/html/cgap/cgap.html.

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Project in Support of NGOs in West Bank/Gaza 43. In FY96, the preparation of an international multidonor project for NGOs in the West Bank and Gaza has been underway. This project, to be administered by the World Bank, is being initiated in recognition of the important development role played by Palestinian NGOs and the funding loss they have experienced in recent years as a result of the Gulf War and the diversion of donor funds to the Palestinian Authority. A Bank contribution of up to $10 million is being requested, along with co-financing of up to $10 million. Project approval is expected in FY97. The funds would be provided on a grant basis. Institutional Development Fund 44. The Institutional Development Fund is a grant facility for financing technical assistance for institutional development in key operational areas such as poverty reduction, human resource development, environmentally sustainable development and gender. Only governments can request IDF grants and, in most cases, IDF grants are used for public sector institutional development. In some cases, however, with government approval IDF funds have been used for NGO capacity-building or NGOs have been involved in activities financed by the IDF. In FY96, the IDF made 96 grants totaling over $24 million. FY96 grants which involved NGOs included, among others: a grant for Promoting Gender Accountability in the Agriculture and Natural Resources Sector in Nicaragua, an Institutional Environment Assessment in Benin, and National Capacity Assessments for Burkina Faso, Guinea Bissau, Cote d’Ivoire, Ghana, Malawi, Tanzania, Uganda and Zambia. Fund for Innovative Approaches in Human and Social Development 45. The Fund for Innovative Approaches in Human and Social Development (FIAHS) was established in FY95 to support participation (including the involvement of NGOs and community-based organizations) and social assessments in Bank-financed activities. The FIAHS is not a fund to which NGOs can apply, but rather a supplemental source of funding which can be used by Bank staff (as a complement to regular departmental budgets) in order to undertake innovative activities in the areas of participatory and social development or to build in-house capacity in these areas. During FY96, the FIAHS disbursed a total of $1.5 million. A number of the activities financed by the FIAHS focused on or involved NGO-related issues.

III. RESEARCH AND ANALYSIS 46. In addition to its operational activities, the Bank engages in research and undertakes a wide array of economic, social and other sector-specific studies to inform and advise its lending portfolio and to contribute to the learning of the development community more generally. An important trend in recent years has been increased NGO involvement in the

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Bank's Economic and Sector Work. 11 NGOs have also played an increasing role in project-level studies, environmental and social assessments, and other Bank-financed research. In FY96, NGOs both collaborated in, and were the subject of, Bank-supported research. Country Assistance Strategies 47. The Country Assistance Strategy (CAS) is a key document which defines the overall framework for the Bank's activities in a given country and also feeds into individual project design. Given the Bank's growing emphasis in recent years on fostering "local ownership" and enhanced public understanding of Bank-financed activities, increased efforts have been made to introduce participatory processes in CAS preparation. 11 Objectives of NGO participation in the preparation of the CAS are to: improve the quality of the CAS by tapping into "local knowledge" and ensuring that the views of target (especially poor) populations are reflected; further the Bank's objective of enhancing stakeholder participation in its lending and non-lending operations, and; assisting borrowers in increasing transparency, public understanding and involvement in development decision-making. 48. In November 1995, the NGO Unit organized a meeting with a small group of Bank staff and NGO representatives to discuss participatory approaches to the preparation of CASs. While the extent of civil society participation in CASs depends on a number of factors (e.g. the capacity of NGOs, borrower willingness to adopt a participatory approach, the nature of NGO-government relations, and the size and diversity of Bank programs), a growing number of CASs undertaken in FY96 included the involvement of NGOs and other civil society actors. These included: i) participation in the various studies comprising the "building blocks" for the CAS (e.g. poverty assessments, gender analysis and other social assessments, environmental action plans); ii) participation in discussions of national development priorities, and iii) the participation of NGO specialists and generalists in discussions of action plans. 49. In Malawi, for example, over 120 civil society participants were consulted through target group meetings and through the use of computer Groupware to help determine development priorities, provide feedback on the impact of Bank activities, and analyze the causes and solutions to poverty. In Ghana, over 30 consultative meetings were held during the month of November 1995 concerning the upcoming CAS. These included government/public sector representatives, NGOs, academics, journalists, politicians and

11 Economic and Sector Work (ESW) refers to the broad range of research and analysis undertaken by the

Bank in order to inform its lending program and the policy advice it offers to borrowing governments. ESW seeks to identify and understand borrowers' development problems and opportunities and to advise on how to tackle them. Economic work focuses on the overall economic problems and development challenges of developing countries. Sector work studies the development problems, policies, institutions and investment priorities of major sectors and subsectors.

11 See John Clark, Civil Society Participation in the Country Assistance Strategy Processes, Extracts from a draft paper, February 23, 1996.

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trade associations. NGOs were also invited to a retreat to discuss the CAS draft in early 1996. In Cambodia, a one-day workshop was organized to present and solicit feedback on a preliminary CAS working paper. This workshop was attended by approximately 25 NGOs and other civil society representatives. NGOs have also participated, or been consulted, in the preparation of CASs in Bangladesh, Guinea Bissau, the Ivory Coast, Lesotho, Vietnam and Zambia. Participatory Poverty Assessments 50. Poverty assessments (PAs) are undertaken in all borrower countries to help the Bank, governments, donors and NGOs understand who the poor are, why they are poor and, based on this analysis, to provide potential solutions. Some poverty assessments (known as Participatory Poverty Assessments or PPAs) are undertaken using participatory research methods. 12 These PPAs seek to learn about poverty from poor people themselves, to pay increased attention to poverty among diverse groups (such as women, children, ethnic minorities or the elderly) and to ensure that social and cultural issues are taken into account in the design and implementation of poverty alleviation strategies. PPAs frequently draw on NGOs to provide information or to assist in participatory research. During FY96, PPAs were carried out in Mozambique, South Africa, Swaziland and Armenia. NGOs were also involved in PAs in Cambodia, the Philippines and Vietnam. A PA undertaken in Yemen in FY96 identified the development of the NGO sector as one of the three main components of a national poverty reduction strategy. Sectoral Studies and Research 51. A number of sector-specific studies undertaken in FY96 either involved NGOs or included NGO issues in their scope of study. In Morocco, for example, the preparation of a study on Decentralization and Rural Development included an inventory and analysis of NGO involvement in this sector. Similarly, a report on Poverty and Unemployment in Trinidad and Tobago prepared in FY96 included a chapter on the role of NGOs and recommendations as how to support their ongoing activities. During FY96, the Bank also supported a series of civil society studies in Russia, Slovakia and Poland. 52. The Bank's Policy Research Department (PRD) carries out more in-depth research on specific subjects of key policy interest. In FY96 PRD, collaborated with International Christian Humanitarian Services (ICHS), a Dutch NGO working in Kenya, to carry out the pilot phase of a randomized evaluation of different policy options in improving primary education. Over the next four years, ICHS will provide different forms of assistance to selected primary schools (such as textbooks, school supplies, desks, classroom repair, etc.). PRD will study and compare the different forms of assistance in order to evaluate relative impact and cost-effectiveness. PRD also hopes, with this project, to set a precedent for collaboration between researchers and NGOs in conducting randomized evaluations. A

12 See Jeremy Holland and James Blackburn, eds., Who’s Voice? Participatory Research and Policy Change.

(London: Intermediate Technology Publications, 1997)

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PRD report states that "since NGOs are more flexible and less politically constrained than governments in undertaking such projects, there may be wide scope for such evaluations". Environmental and Social Assessments 53. All Bank-financed projects judged to have a potentially significant environmental impact are required to conduct a full environmental assessment (EA). World Bank Operational Directive 4.01 requires that NGOs be consulted during the EA process. Many EAs have gone much further, not only consulting NGOs, but involving them fully at all stages of the EA. In FY96, for example, NGOs participated in the EA for the Argentina Flood Protection Project. Social assessments, which provide a framework for incorporating participation and social analysis into the design and delivery of Bank operations have become increasingly common in recent years. In Laos, for example, an NGO (CARE International in Laos) was contracted to carry out a socio-economic and cultural survey in the context of the Nam Theun 2 Project (a hydroelectric project which will displace approximately 21 communities and affect other communities in the region). The purpose of this study was to provide socio-economic, cultural and ethnographic information about the project area to assist in the formulation of an appropriate resettlement and indigenous peoples' plan. CARE International in Laos had significant experience in carrying out social assessments as well as field staff with local language skills and knowledge of the project area. The study was carried out using a variety of rapid rural appraisal techniques. Its findings include details regarding the ethno-historical settlement patterns of the region, a description of the area's indigenous peoples, an analysis of livelihood systems by ethnic groupings and household economic data . Structural Adjustment Participatory Review Initiative 54. The World Bank and a broad global network of some 300 NGOs and other organizations of civil society have agreed to work together in collaboration with participating governments to review the impact of adjustment lending and policy advice in selected countries. This exercise, now known as the Structural Adjustment Participatory Review Initiative (SAPRI), aims to improve understanding about the impacts of adjustment policies as well as about how the participation of local, broad-based civil society can improve economic policy making. Being a forward-looking exercise, the initiative will attempt to identify practical changes in economic policies that can lead to significant improvements in people’s lives. 55. In June 1995, Mr. Wolfensohn met with a group of U.S. and international NGOs to hear their concerns about structural adjustment programs. These NGOs asserted that adjustment programs had been detrimental in many ways to developing-country economies, disproportionately hurting the poor and reducing local productive capacity, and that local information had not been adequately tapped by policy makers in the adjustment planning process. They recommended that the Bank undertake a review of adjustment that would focus primarily on learning from the experiences of citizens’ organizations worldwide. Mr. Wolfensohn asked the NGOs to prepare a proposal for a joint Bank-NGO review of

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adjustment that would be forward-looking and collaborative. 56. The original group of NGOs, coordinated by The Development Group for Alternative Policies (D’GAP), reached out to dozens of other NGOs and civil society groups from the South and Europe and developed a detailed proposal. Their proposal, which was submitted to Mr. Wolfensohn in December 1995, recommended holding public fora in different countries that would assess the effectiveness of adjustment programs in meeting development goals. Mr. Wolfensohn asked a Bank team, headed by the Policy Research Department, to respond and work with the NGOs in refining a joint proposal. 57. The Bank and NGOs began discussions in March 1996 and have now developed a plan for a joint participatory review of adjustment in up to ten countries. A joint steering committee has been set up to coordinate SAPRI, with PRD as the Bank’s secretariat and D’GAP as the civil society/NGOs’ secretariat. The first joint SAPRI steering committee meeting will be held in mid-July 1996. The steering committee plans to develop the review’s objectives, approach, general methodological guidelines, and country selection criteria. It has already been established that Government endorsement is required for the exercise to be truly effective, therefore, full government participation will be sought throughout. Study on NGO Involvement in Bank-financed Activities 58. The Bank’s independent Operations Evaluation Department (OED), has initiated a study to assess the contribution of NGOs to the development effectiveness of projects supported by the Bank. The study will focus on performance on-the-ground and the processes at work which help explain this performance. The sectoral focus of the study will be primarily, but not exclusively, agriculture and human development (education, population, health and nutrition, and the social sector). Taking into account the context of the trilateral relationship between borrowing governments, the Bank, and NGOs, the study shall seek to explore: i) whether cooperation with NGOs does improve the performance of Bank-supported projects; ii) if so, how and under what circumstances; iii) if not, why and what are the constraints to effective collaboration; and, iv) what is the impact of the trilateral relationship on each of the actors involved? On the basis of its findings, the study will seek to make operationally relevant recommendations about how to improve Bank-NGO cooperation. From the earliest stages of design, the OED study team has taken a participatory approach, working in collaboration with NGO members of the Bank-NGO committee and seeking input from a broad range of Bank staff and NGO representatives. The study team plans to begin field research by late 1996 and to complete the study and disseminate its findings by the end of calendar year 1997.

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NGO-State Relations 59. In recent years, the Bank has sought to better understand NGO-State relations, to promote NGO-State dialogue and collaboration and to work with governments in promoting an enabling environment for NGOs. During FY96, two important studies of the NGO sector and aspects of its relations with the government (in Bangladesh and Indonesia) were completed in draft. It is hoped that the findings and recommendations of these studies will contribute to enhanced NGO-State relations in coming years. Laws Relating to NGOs 60. The Bank’s recognition that a strong voluntary sector makes an important contribution to equitable and sustainable development is reflected in its work on “good governance”. It also recognizes that Government policies strongly influence the enabling environment for NGOs and the roles that they assume. These policies include rights regarding freedom of speech or association, regulatory policies, fiscal policies, funding and partnership relations, and policies regarding consultations with the public and with NGOs. Various Bank studies conducted of national NGO sectors have identified restrictiveness, arbitrariness, or unpredictable application of laws relating to NGOs as major problems hampering the development of the sector and preventing individual NGOs from achieving their full potential. 61. These studies have led the Bank to be convinced of the utility of a handbook on good practices regarding NGO laws. In 1995, the Bank commissioned a specialist NGO -- the International Center for Not-for-Profit Law (ICNL) -- to embark on a major study of existing practice, to distill from this important principles for legislation, and to offer lessons of good practice -- recognizing that the characteristics of the NGO sector and society vary from country to country, as does the capacity of governments to implement detailed legislation. From this exercise the draft Handbook on Good Practices for Laws Relating to Non-Governmental Organizations has emerged (published as work in progress. Intention to revise and publish in final form during 1998). It is based not only on detailed research but also on debates and discussions with numerous lawyers, NGO leaders, and government officials throughout the world. 62. Many governments, particularly in Africa have already used the draft Handbook as a basis for starting discussions on reforming NGO law. Countries such as South Africa, Cameroon, Mali, Chad, Mozambique, Benin, Ghana, Ethiopia, Nigeria, Senegal, and Zambia have all initiated dialogue between government and NGOs pertaining to NGO law. 63. In the Latin America and Caribbean region, the NGO Unit is supporting an EDI initiative to hold an electronic symposium on NGO law in the region. The objective of the initiative is to begin a process of region-wide dialogue on enabling legal contexts for the effective participation of NGOs in development. The symposium, to be held in FY 97, will disseminate a Spanish translation of the NGO Law Handbook; collect more information on country-specific situations; and foster a dialogue and better understanding between

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governments, academics, NGOs and other civil society actors on enabling legal frameworks.

IV. POLICY DIALOGUE

64. In addition to collaborating with the Bank in operations and research, NGOs play an important role as advocates for policy change and institutional reform. The Bank increasingly exchanges information, ideas and experiences with NGOs and consults with NGOs on key issues of mutual concern. Important recent trends in policy dialogue have been i) increased emphasis on consultations with NGOs in developing countries and ii) structures for more systematic policy consultations with NGOs on key themes (e.g. the creation of NGO advisory groups on gender and sustainable agriculture). An additional trend has been an expansion in the scope of issues addressed by NGOs. For example, international NGOs are now paying greater attention to private sector issues and expanding their dialogue with the more commercially-oriented branches of the World Bank Group, such as the Multilateral Investment Guarantee Agency (MIGA) and the International Finance Corporation (IFC) . Mr. Wolfensohn's Interactions with NGOs 65. In his first year as president of the World Bank, Mr. Wolfensohn has been a strong advocate of support for and collaboration with NGOs. In addition to meeting with NGOs during his travels in numerous developing countries (including Albania, Argentina, Brazil, Gaza, Ivory Coast, Jamaica, Malawi, Mali, Mexico, South Africa and Uganda), Mr. Wolfensohn has also met with international NGOs based in Australia, Canada, England, Germany, Italy, Japan, Switzerland and elsewhere. Throughout FY96, Mr. Wolfensohn hosted a series of thematic meetings in Washington with both operational and advocacy NGOs on issues including the environment, structural adjustment, poverty, gender and sustainable agriculture. During the World Bank's 1995 Annual Meetings, an unprecedented event took place when Mr. Wolfensohn, along with three NGO representatives (from FAVDO, Oxfam International and InterAction) held a joint press conference in support of development assistance including IDA. Mr. Wolfensohn also participated in the annual meetings of the NGO-World Bank Committee in October 1995, where he addressed the committee on a number of key issues and responded to questions and concerns. Gender 66. Several senior World Bank delegates attended the Fourth World Conference on Women held in Beijing, China in September 1995. Mr. Wolfensohn was also in attendance and during his stay held two meetings with NGOs - one general meeting with over 600 NGO representatives and a second more detailed discussion with 17 selected women NGO leaders. Bank delegates also participated in sessions of the parallel NGO Forum (of which the Bank was the largest cash funder). Following up on its commitments to the Beijing

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Platform of Action, the Bank established in FY96 an External Gender Consultative Group. The group is made up of 14 gender experts and NGO leaders from around the world which will meet with the Bank on an annual basis to exchange views on the formulation and implementation of gender policies and programs. Mr. Wolfensohn participated in the first meeting of the Consultative Group which was held in Washington in April 1996. The key objectives of the Consultative Group are to: provide a mechanism for disseminating information and discussing progress in implementing the Bank's gender policies; discuss NGO concerns about the Bank's approaches to gender; provide feed-back to the Bank on lessons learned from NGOs and other organizations regarding gender issues, and; discuss ways to strengthen NGO-Bank cooperation on gender issues at the regional and country levels. Social Development 67. In the spring of 1996, Mr. Wolfensohn appointed a Social Strategy Task Force to review initiatives and approaches in the field of social development and to make more systematic use of best practice concepts and findings in this area in the Bank's operational work. NGOs in a number of different countries were consulted on the terms of reference of the Task Force, and an NGO Focus Group was formed to provide the Task Force with input and comments from a civil society perspective. To do this in a transparent and representative way, NGO members of the Steering Committee of the NGO-World Bank Committee were invited to form the core of such a group and to collectively nominate additional colleagues to form a Focus Group of 15 NGO representatives from around the world. An electronic discussion group was established to facilitate interactive dialogue between the Focus Group and the Bank. NGOs were also given the opportunity to comment on the Task Force's draft report, which has now been finalized and will be sent to the Board early in FY97. Participation 68. Participation has long been a key subject of dialogue between the Bank and NGOs, and a number of important initiatives have been put in place to promote participation in the Bank's work in recent years. In FY96, the Bank initiated the creation of an Interagency Group on Participation (IGP). The IGP met for the first time at Bank headquarters in September 1995 and again in March 1996. The objectives of this group, made up of representatives of bilateral and multilateral agencies and NGOs, are to: promote information-sharing and learning regarding participatory approaches; share experiences in strengthening institutional support for participatory development, and; identify opportunities for inter-agency collaboration. Among NGOs participating in the IGP are PRIA (India), World Neighbours (international) and the Grupo de Estudios Ambientales (Mexico). 69. In February 1996, Mr. Wolfensohn hosted the launch of The World Bank Participation Sourcebook - a publication which aims to assist Bank staff in adopting participatory approaches by documenting current practice, describing lessons learned and

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presenting participatory methods and tools. Thanks to a video-conferencing system, African NGOs attending the regional meeting of the NGO-World Bank Committee in Accra, Ghana were able to participate in the launch (which took place at Bank headquarters in Washington). During a question and answer period, Mr. Wolfensohn interacted with the NGOs in Accra, responding, for example, to questions regarding the Bank's willingness to support initiatives aimed at enhancing NGO capacity to develop and carry out participatory approaches. Mr. Wolfensohn ensured NGOs of the Bank's openness to such initiatives and encouraged them to prepare and submit a concrete proposal. 70. During FY96, a group of twenty Bank-financed projects were identified as participation "flagships". These projects, selected on the basis of their innovative approaches to promoting participation, will be monitored on an ongoing basis. Quarterly reports on their progress are being submitted to Mr. Wolfensohn. Environmentally Sustainable Development 71. For the past several years, the Environmentally Sustainable Development Vice Presidency (ESDVP), led by Mr. Serageldin, has met on a regular basis with NGOs working in the environmental and sustainable development fields. During FY96, meetings were held approximately every two months. Key issues included the Bank's new agriculture action plan, procedures for the evaluation of Bank projects and discussions over the environmental aspects of several important Bank-supported dam projects. NGOs also participated actively in ESD's 1995 annual conference which focused on the theme of Effective Financing. Several workshops, including one on Ethics and Values and another on Fiscal Resources for Community-Based Organizations were organized and hosted in partnership with NGOs. Consultative Group on International Agricultural Research 72. In a move towards greater openness and participation, the Consultative Group on International Agricultural Research (CGIAR) established an NGO Committee in FY96. The Committee met for the first time in Washington in October 1995 and again in Jakarta in 1996. Its 12 members were appointed by the CGIAR chairman, following broad consultation with the NGO community and taking into account factors such as geographic, thematic and gender balance, and outreach capability. The objectives of the committee are to provide policy inputs to the CGIAR (based on NGO perspectives relating to environmentally, socially and economically sustainable agricultural research and development), to strengthen mutual understanding between NGOs and the CGIAR and to assist and advise the CGIAR in expanding its dialogue with the wider NGO community. By creating this mechanism for policy dialogue, the CGIAR aims to deepen its already significant relationship with NGOs at the operational level. (More than 350 NGOs world-wide are currently engaged in collaborative activities with CGIAR centers). Conversion of World Bank Operational Directives

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73. During FY96, NGOs and other stakeholders were consulted during the process of converting a number of existing World Bank Operational Directives (ODs) into a new format whereby they are rewritten as Operational Policies (OPs), Bank Procedures (BPs) and Good Practices (GPs). NGOs expressed a particular interest in ODs concerning Environmental Assessment (OD 4.01), Indigenous Peoples (OD 4.20), Involuntary Resettlement (OD 4.30) and NGO Involvement in Bank-supported Activities (OD 14.70). 74. A draft of the revised OD on environmental assessment, for example, was circulated to approximately 70 NGOs world-wide in November 1995. Steps were taken to ensure that NGOs were allowed sufficient time to review the document and submit their comments, and the draft was translated into French and Spanish to facilitate its review by non-English speaking NGOs. The conversion of the OD regarding Indigenous Peoples is not yet completed. Although there have been informal discussions with NGOs regarding the conversion, no formal consultations with NGOs has yet taken place. The Bank has had interactions with NGOs on indigenous peoples issues on a number of occasions throughout the fiscal year however including, for example, a forum on Indigenous Peoples' Policies for Development Assistance in Asia (in November 1995); a meeting on Indigenous Peoples' Production and Trade (in Copenhagen in January 1996) and a national consultation with indigenous leaders co-sponsored by the Bank in Guatemala. The conversion of OD 4.30 on Involuntary Resettlement is expected to take place in FY97. Once a draft document has been prepared, it will be circulated to NGOs and other interested parties for comment. The World Bank's Operational Directive on Involving NGOs in Bank-supported Activities (OD 14.70) was also converted into the new format during FY96. NGOs were convened on a number of occasions to review draft copies of the revised directive and to provide input and comments. The revised directive will be issued in FY97 as GP 14.70 Debt 75. Debt reduction remained a priority issue of dialogue between NGOs and the Bank in FY96. Throughout FY96, NGOs continued to call for a scheme to reduce the debt of highly indebted poor countries. Two-way exchanges took place throughout FY96, with NGOs making their voices heard on numerous occasion and the Bank providing ongoing briefings to keep NGOs informed of recent developments. For example, special briefings by Bank staff for NGOs interested in debt were held in Washington in September 1995 and April 1996, just prior to the Bank's annual and spring meetings. European NGOs were also kept informed of current developments through a series of meetings hosted by local and visiting Bank staff. Information Disclosure 76. An Informal Working Group on Information Disclosure, made up of Bank staff and NGO representatives, met on several occasions over the past year to monitor progress in implementing the Bank's information disclosure policy and to discuss strategies for improving public access to Bank documents. Key issues of debate have included

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expanding the disclosure policy to include documents such as all or parts of the Country Assistance Strategies (CASs); enhanced efforts to translate key documents (such as Project Information Documents) into local languages and exploring possibilities for establishing local-level Public Information Centres in developing countries. Since the opening of the first developing country PIC in Jamaica in September 1994, a number of countries including Brazil, Colombia, Indonesia, Peru and Tunisia, have taken steps towards establishing PICs or making their current public information systems more comprehensive and accessible. NGO-World Bank Committee 77. Created in 1982, the NGO-World Bank Committee is the oldest and most established forum for policy dialogue between the Bank and NGOs. Made up of senior Bank officials and 26 NGO leaders from around the world, the committee meets once a year at Bank headquarters to discuss issues of mutual concern. At the Committee’s annual meeting (Oct. 95), the major items of discussion were the IDA negotiations (the NGO Working Group made very strong representation in favour of a full IDA replenishment to U.S. Congressional Committees and other G7 parliaments, and to U.S. NGOs); participatory development -- including the case for participation in ESW and CAS preparation; and social development policies. 78. As part of a new strategy to strengthen the Committee's links with developing countries and to include a broader spectrum of southern NGOs in its deliberations, a series of regional meetings are also held on a annual basis in the Africa, Asia/Pacific and Latin America/Caribbean regions. In FY96, regional meetings of the committee were held in the Ghana, the Philippines and Nicaragua. The meeting in Ghana in February 1996 was attended by over 30 African NGOs and several senior level Bank officials. Key areas of discussion included the Bank's Africa Participation Action Plan, NGO participation in the preparation of Country Assistance Strategies (CASs) and the impact of structural adjustment programs (SAPs). The Asia/Pacific regional meeting held in the Philippines in April 1996 focused on the implementation of the regional Participation Action Plan and mechanisms for strengthening the capacity of NGOs in the region to interact and work with the Bank. Broader issues concerning poverty reduction, popular participation, SAPs and multilateral debt reduction were also discussed. The regional meeting held in Nicaragua in June 1996 was attended by approximately 80 participants, including 20 Bank staff. Topics of discussion included strategies for more proactive dissemination of Bank materials, the impact of SAPs, participation in the preparation of CASs and the role of the Bank's newly appointed NGO liaison officers.

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SUMMARY DESCRIPTIONS OF SELECTED FY96 WORLD BANK-FINANCED

PROJECTS INVOLVING NGOS

I. Population and Health EGYPT: Population Project Egypt has the highest population of any Arab country, estimated at 57 million in 1993. While Egypt has had a formal population policy since 1964, national leadership of the sector has been weak until the creation of the Ministry of Health and Population (MOHP) in 1996. The project aims to i) help Egypt to better manage the country’s population growth through institutional support to the MOHP, and ii) improve conditions of women and children in areas where fertility remains high by stimulating demand for smaller family size and family planning services. NGOs, local community organizations and the private sector play an important role in the providing population and family services in Egypt. An estimated 400 NGOs of various size and capacity provide general education, social marketing, Information, Education and Communications (IE&C) activities and other services related to population throughout the country. The project will work closely with community organizations to educate families and help them feel empowered to make decisions on issues relating to family size. The project’s Population Activities Program (PAP) component is designed to stimulate demand for family planning and smaller family size where fertility remains high and demand low, mainly in rural areas in the north. The component supports grants to NGOs, local community organizations and relevant public sector agencies for small decentralized proposals. An anticipated 87% of project funds will be provided to NGOs and local community organizations (both public and private). The PAP is administered through the Social Fund for Development (SFD), a national, secular and semi-autonomous agency established in 1991. The SFD will also provide technical support to strengthen the capacity of NGOs in the areas of fundraising, operations and administration. The aim of the PAP is to develop a sustainable supplement to public sector programs, and help reduce future pressures on government to provide such services. Project impact is to be measured through a community-level monitoring and evaluation system which will build in continuous consultation and follow-up adjustment of project implementation. Through the project, the dialogue between the government, NGOs and other organizations on population issues will be enlarged, and their various population activities better supported.

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SIERRA LEONE: Integrated Health Sector Investment Project The civil war in Sierra Leone has had a crippling effect on the country’s public health care system, already suffering under a decade of general neglect of the social sectors. Life expectancy in Sierra Leone is currently 39 years, the lowest in the world. Lack of access to safe drinking water and sanitation facilities, high birth rates, over crowded living conditions, and low levels of literacy and basic education all contribute to perpetuate a cycle of poverty and illness. Clinics and peripheral health units (PHUs) in those districts affected by the war have been incapacitated due to loss of communication, access to supplies and health personnel. The migration of affected populations to Freetown and the Western Areas has in turn put increased pressure on resources and demand for services on hospitals and clinics in those areas. The project will assist the government in carrying out its National Health Action Plan (NHAP), which aims to raise the level of health in Sierra Leone through increased access to, and provision of, better quality basic health services. To achieve the NHAP objectives under these urgent conditions, the project is based on an integrated approach - combining the efforts and commitment of government, NGOs and beneficiaries. The NHAP itself was drafted by the Department of Health through a participatory process (an adaptation of the ZOPP - objectives oriented project planning - technique), which involved a wide rage of stakeholders including other government departments, multilaterals, private sector health care providers, NGOs, community representatives and multilateral agencies. Across the country, public meetings, focus group discussions and consultations with heath providers have been utilized in conjunction with the beneficiary assessment (BA) to ensure that local feed back on the NHAP was integrated into the project design. Despite the extreme state of the health sector, an active and committed NGO presence in Sierra Leone provides potential resources for the government and the Project. The Government has demonstrated willingness to make greater use of the expertise of several of the NGOs, and open up the way for the private sector’s role in financing and delivery of health care. NGOs currently active include AFRICARE, CARE, Christian Children Fund, Christian Health Association of Sierra Leone, Sierra Leone Muslim Mission, Plan International, Plan Parenthood Association, and many others. The project will cover the physical rehabilitation of existing health care facilities, opening of new health posts and centers, training retraining and supervision of health workers, provision of supplies (drugs, contraceptives, vaccines, materials and logistic support), ensuring responsiveness of service to the needs of the community, community involvement in management and financing of facilities, decentralization of management of health care delivery to the District level and utilizing expertise of donors and NGOs.

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The key to improving the quality of health care in Sierra Leone will be the restructuring health services to make them more responsive to community needs, and involving communities themselves in health care management. NGOs will play a crucial role, through technical expertise and beneficiary outreach capacities, in improving skills and introducing financing mechanisms for such services. KYRGYZ REPUBLIC: Health Sector Reform Project The Kyrgyz Republic is among the FSU countries most adversely affected by its transition from the centralized-Soviet system to a market economy. The project aims to support the government’s program to improve the capacity of the national health system to deliver efficient and cost effective services in the areas of Primary Health Care, Facilities Rehabilitation, Medical Care Provider Payment, and Pharmaceutical Management. In order to meet the above objectives, the project depends on the cooperation and active participation of the medical community and the various populations that it serves. NGOs and other donors were consulted throughout the Project’s design stage, and their activities are expected to be enhanced through implementation of the project. Community user groups will be formed in each project area to assist in maintenance and utilization of project-supported facilities. Under the Women’s Reproductive Health sub-component, the Project will complement the work of other NGOs such as BASICS and Central Asian Partners - a small NGO based in Bishkek working to upgrade obstetric skills in local heath facilities.

The Project’s Medical Care Provider Payment component is based on a pilot currently underway in the Isyk-kul region, and will be expanded to cover Bishkek City and Chui Oblast under the project. This component includes the creation of 300 Family Group

Practices (FGP), and a Primary Care Physicians Association to represent the interests of the medical community which will face great changes under a new and unfamiliar health

care system. Financing for 5,300 patients in every FGP will be provided under the component, allowing patients flexible enrollment based on individual or family needs. An international NGO will provide the model for the Family Doctor Training program,

and may support the program’s implementation.

II. Energy and Environment

PAKISTAN: Ghazi Barotha Hydropower Project The objectives of the project are to assist the government of Pakistan to develop a domestic energy resource and reduce load-shedding in a cost effective and environmentally sustainable manner, reinforce and complement the reform program for

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the power sectors, strengthen the Water and Power Development Authority’s (WAPDA) capability to address environmental and resettlement issues related to hydropower projects, and further rationalize the use of energy. The Ghazi Barotha Hydropower Project (GBHP) site is located directly downstream from the Tarbela Dam on the Indus River in the Punjab and North West Frontier provinces of Pakistan. Affected areas include communities in the historic Chhachh plain region and several villages, graveyards and shrines along the Grand Trunk Road. Public consultation has been an integral part of project preparation. Early and frequent meetings with government agencies, potentially affected parties and NGOs ensured that the project’s planning team was kept attuned to public concerns and desires, and the inclusion of the local population in the planning process. An independent Environmental and Resettlement Review Panel was established to provide environmental and resettlement studies during project design. These were translated into Urdu and made available to project affected people and NGOs. NGOs such as World Conservation Union Pakistan (IUCN), the World Wildlife Fund for Nature Pakistan (WWF), and Sungi Foundation were involved in meetings and visited project area to review the scope of proposed activities and recommend mitigation actions and to discuss the proposed monitoring plan. A Resettlement Action Plan (RAP) was prepared by WAPDA based on a focused census and sample surveys of affected persons. The RAP makes a commitment to improving or restoring the current standards of living and earning capacity of the people permanently and temporarily affected by the project. Entitlement packages (based on type of land loss or disturbance, definition of entitled person, definition of entitlement/right) provide for facilities and services including training, work opportunities, credit and provisions for infrastructure projects. In order to compliment the RAP and to provide additional safeguards for the population against effects of the project, the National Rural Support Programme, a local NGO, prepared the Integrated Regional Development Plan (IRDP) for the Project area. The objective of the IRDP is to ensure that local communities share some benefit from the construction of the GBHP in the long term. The IRDP therefore covers the areas of education and health services, agricultural development (credit extension services) and business and industrial development. A Project Information Center (PIC) and two sub-centers have been established by WAPDA to ensure systematic and broad dissemination of all technical, environmental and resettlement information to the directly affected, NGOs and the media. NIGER: Natural Resource Management (NRM) Project

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The aim of the project is to slow down and eventually reverse the current process of land and natural resource degradation in Niger over the next five years, in order to secure sustainable agricultural production and growth, reduce poverty and improve living conditions in the country’s rural communities. To achieve the above objectives, the project will i) provide rural communities with necessary skills, information and technical and financial resources to design and implement management plans for their lands, and ii) assist the government in strengthening capacity at the national level to promote, assist and coordinate the diverse NRM initiatives underway in Niger. Under the project’s ambitious Community Based Natural Resource Management Plan, 380 communities will receive project support to design and eventually carry out community based management plans. These designs are to be formulated at the community level during project implementation. NRM-related activities will be identified by Local Initiative Groups (Groupes d’action specifique), submitted to community elected Local Councils for approval, and carried out by communities themselves. The Local Council for Natural Resource Management (LCNRM) will provide the link between the local community and all outside partners. Given the general scarcity of technical skills required for implementing such a program in Niger, the Human Resources Development component will provide training to technical staff from government agencies, district officials and NGOs, in addition to the participating communities. Communities will receive specific training in the dynamics of natural resources and skills in terroir diagnosis, management design planning, negotiation skills, use of new technologies, equipment maintenance, financial management, and monitoring and evaluation. NGOs and private training consultant firms will be contracted to provide analysis of skills-gaps and the design of training modules. In the district of Boboye, the Nigerien Volunteers Organization for the Preservation of the Environment (ONVPE) has been contracted to manage the Project, based on its expertise and unique experience in the region. NRM-Related Social Infrastructure Investments supported under the Project will have an important impact on natural resource management and sustainable agricultural production. The investments will concentrate on health and nutrition, literacy and education, and improvement of access roads - all of which strengthen the community’s ability to participate effectively in NRM activities. Because credit mechanisms are not available in most parts of rural Niger, funding for community investments will be provided on a grant basis. Where these investments generate a quick return, the LCNRM may agree with community members benefiting from the investment on periodic payments into a Community Savings Fund, to finance future investments on a similar basis or loans to individuals or groups. An NGO experienced in rural savings and credit will provide training in simple financial management techniques and procedures.

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III. Transportation

PERU: Rural Roads The over all objectives of the project are to provide well-integrated and reliable rural road system in Peru through the rehabilitation and maintenance of rural roads and key links connecting to the primary road system. The specific objectives are to i) reduce transport costs and improve access to markets for agricultural and non-agricultural products, ii) integrate poorly accessible zones with regional economic centers, iii) improve transport conditions in rural areas, iv) generate employment through rehabilitation and maintenance of rural roads to mitigate rural poverty, and v) build up institutional capacity of local government and small and medium enterprises to manage and carry out the maintenance and upgrading of rural roads on a sustainable basis. The project design phase involved participation of all stakeholders to promote shared ownership of the project. Community leaders and NGOs working with the poor were invited to Community Participatory Workshops to discuss the project, problem solve and become familiar with the issues. Logical Framework and AIC methodologies were used to develop objectives and suggest and prioritize strategies. The involvement of members of the ancestral ayllu, or communal organizations, and women’s groups such as Mother’s Clubs in priority setting activities allowed for local priorities related to road rehabilitation and maintenance to be included in project design. Sub-projects under the pilot project were selected in the basis of poverty criteria targeting roads located in the poorest provinces of the six poorest departments. Subsequent sub-projects will be identified based on requests by communities, NGOs and local governments. In 23 workshops organized in 1996, local authorities identified candidate sub-projects raking them according to local priorities. Interestingly, the workshops also highlighted the priority of improving the large number of tracks and paths for non-motorized transport. Project objectives and components are being disseminated through municipalities, and local NGOs. NGOs such as Asuncion in the department of Cajamarca, are presently involved in developing microenterprises and community based organizations that are undertaking routine maintenance of rural roads. In 1997 NGOs will also start assisting communities to plan and carry out improvements to non-motorized transport. It is expected that through involvement in the preparation of engineering designs and supervision of works, NGOs will benefit from the experience of learning by doing and be motivated toward quality and efficiency.

IV. Education and Training

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EL SALVADOR: Basic Education Modernization Years of civil war and economic crisis in El Salvador have led to a dramatic deterioration of public services throughout the country. While education indicators remain among the worst in Latin America, these have deteriorated to a lesser extent, due to the mobilization and provision of services by NGOs and the private sector. The objective of the project is to assist the Government of El Salvador in improving access to, and the quality of, the education system, particularly in the areas of preschool and basic education. Specifically, the project aims to help strengthen the Ministry of Education’s capacity to set policy and guidelines of the sector, and the improve the education system’s capacity to deliver services effectively and efficiently.

Representatives of parents, teachers, local authorities and teachers unions were actively involved in discussions during project design. A Social Assessment (SA) was carried out at that time to ensure that stakeholders understood the project’s objectives, that their needs were prioritized and to establish mechanisms to ensure their inclusion in future decision making. Despite the critical role of NGOs in maintaining educational services, the SA revealed a level of mistrust between NGOs and government. The Ministry of Education’s Communication Unit has consequently established mechanisms for consulting NGOs and school communities, to promote public discussion of goals and achievements of the new education policy. The project will increase educational service delivery to poor and rural areas through the expansion of the Educaion con Participaction de la Comunidad (EDUCO) model, established under the Bank’s Social Sector Rehabilitation Project in 1991. EDUCO, a decentralized education system based on community management of service delivery has proven extremely effective in offering educational services at a reasonable cost to the lowest income groups throughout Peru’s rural areas. The Project’s Expansion of Access to Preschool and Basic Education component relies on the strengthening of EDUCO through support from NGOs and private sector. NGOs will develop programs to encourage parental involvement, and provide management skills for parent association (ACE) members. Through the school health and nutrition program, NGOs will provide support to ACEs participating in supplementary community services such as school-based health and nutrition programs. Under the Institutional Modernization and Strengthening component, technical assistance will be provided to the Ministry of Education (MINED) to implement reforms in the areas of management of human and financial resources, planning, information, monitoring and evaluation, and systems communication. At the local level, a funding mechanism - the Pilot Basic Education Fund Program - will be established for NGOs and municipios to

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experiment with innovative and alternative methods of providing pre-school and basic education services.

V. Poverty Reduction and Employment Generation MONGOLIA: Poverty Alleviation for Vulnerable Groups Project The combined shock of the collapse of the 70 year old socialist system and loss of assistance from the former Soviet Union, has resulted in the deterioration of living standards and social indicators in Mongolia since 1990. In parallel with the economic stabilization and reform measures that followed, the Government has initiated a National Poverty Alleviation Program (PAP), aimed at the reduction of poverty to 6 percent of the population by the year 2000. Under the PAP, a Poverty Alleviation Fund (PAF) has been established, to be complemented by projects from aid agencies in the areas of employment generation, local development, women’s development and social assistance. The project is the first IDA-assisted human resource sector operation in Mongolia. The overall objective is to mitigate the adverse effects of Mongolia’s economic transition on the poor segments of the country’s vulnerable groups. As the first donor-assisted project to be processed through the PAP framework, the project will help to pave the PAP’s implementation process. In the immediate term, the project aims to produce quick results in increasing employment and income generation, raising basic education enrollment rates, reducing maternal and other morbidity and providing assistance to handicapped and mentally retarded children and disabled persons. The project was prepared under supervision of an interagency task force composed of the former Ministry of Population Policy and Labor (since replaced by the Ministry of Health and Social Welfare), other government agencies, Aimag (province) Governments and NGOs. Save the Children Fund (UK) and UNDP provided a series of training workshops in “poverty awareness raising” for aimag and Ulaanbaatar officials. During project preparation, pilot schemes in the identified areas of the PAF were tested to provide lessons to be used in formulation of the project itself. Sector teams of local governments, NGOs and communities were given responsibility for preparation and implementation of the pilot schemes, contributing to local leadership and ownership of the future project. Under the Project’s Income Generation component, Vulnerable Group Organizations (VGOs) will be organized with the assistance of NGOs to identify community based income generating schemes which utilize locally available resources. Priority needs for maintenance or improvement of communal infrastructure will be identified by community members at bag (provincial sub-district) level meeting. To date, NGO involvement in the formation of VGOs has been impeded by the primarily urban-focus of the local NGO

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sector. The Project Office is making a special drive to get NGO involved in VGO formation in several districts in Ulaanbaatar. For both Education and Rural Health Care components, local level Sum Poverty Alleviation Councils (SPAC) will hold meetings with local communities to determine priority needs in each sum and solicit proposals. Local government, NGOs and community based organizations (CBO) and the communities will facilitate project implementation. Similarly, in the Institutional Support component Aimag Poverty Alleviation Councils (APAC) will be targeted along with the PAP members to receive technical assistance in management, implementation and monitoring capacities. ARMENIA: Social Investment Fund (SIF) Project The primary objectives of the project are the i) rehabilitation of small scale infrastructure to improve immediate living conditions of the poorest; ii) strengthening capacities of private contractors and other micro-businesses so that they may benefit through contracts financed by the SIF; iii) generation of employment through financing of labor intensive works and iv) increase in capacity for policy makers to monitor and analyze trends in the level and structure of poverty in Armenia. In order to support the country’s transition to a market economy, the project aims to stimulate demand in small scale private sector and strengthen capacity of small private enterprises and local organizations (local government, NGOs, parents and women’s committees, and other community based organizations) to undertake infrastructure and rehabilitation maintenance. During project preparation a national-level Steering Committee was formed comprising of donors and NGOs. The Armenian Assembly of America (AAA) worked in collaboration with a government counterpart to administer the pilot SIF - which identified potential problems in implementation of the larger project, and provided information on local capacity and needs. A total of 13 microprojects were funded through the pilot, which also proved useful in testing methods and procedures to encourage local community and contractor participation. In order to demonstrate to the public and the government of Armenia the validity of a more participatory approach to rehabilitation activities, the Project has targeted the involvement of village assemblies. Together with microproject committees, directly chosen by the communities themselves, village assemblies and local government are responsible for the identification and management of works. A promotion campaign will provide regular information on microproject activity through national media, seminars with local NGOs and community groups, and through sub-contracts to NGOs.

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NGOs will work with parents and women’s committees and other community organizations to organize themselves and prepare microproject proposals. Proposals, once approved, will be implemented by the proposing organization. A community contribution of least 15% is required for acceptance of microproject selection. Acceptable contributions include marketable food or goods, and contributions from NGOs and local governments. Several NGOs have been identified to provide relevant training and technical services, based on their expertise in the areas of community development and participation, training to implementing agencies, and environmental issues. These include the AAA training Center, Oxfam and Save the Children Fund, Haigazan Associates, and the Environmental Research and Management Center at American University of Yerevan.

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Case Studies: Impact of NGO Involvement in on-going Projects INDONESIA: Third Jabotabek Urban Development Project (FY90) The third Jabotabek Urban Development Project, approved in 1990, built on the experience of the JUDP I and II projects to develop a more sustainable approach to the provision of basic services, strengthen pollution control and environmental protection in the Jakarta urban area, and improve maintenance of existing infrastructure networks. Under the project’s kampong improvement program (KIP) 40% of the area’s low-income kampongs that required upgrading were targeted for coverage, reaching over 1.5 million people. In order to ensure the program reflected the needs and priorities of each community, each program was decentralized and participatory methodologies used in the selection of infrastructure services. To date, 85 Kampong Improvement Program sites have benefited under the program. Although the project was originally designed without involvement of NGOs, in 1995, five NGOs were identified to manage 10 of the KIP sites, resulting in a significant increase in the effectiveness of the programs in those areas of Jakarta. One of the NGOs, CARE International, was contracted for Rp. 6.2 m (US$ 183,000) to provide training and management services to Kali Anyar, a sub-district in West Jakarta. Of the nine hamlets or ruhan warga (RW) within Kali Anyar, the most densely populated is RW05, a 2.5 hectare area with a population of over 3,200 inhabitants. Prior to CARE’s intervention through the project, only 40% of the population had access to private latrines and no public latrine or washing facility existed in the area. The majority of the population were forced to cross a main inter-urban railway line to get to facilities relatively far away. Through a problem identification exercise, the community identified the lack of waste water and sewage disposal as the primary concern, with lack of adequate individual and communal sanitation facilities identified as the source of the problem. The primary need identified was therefore to increase the number of sanitation facilities. While these appear to be obvious issues and solutions, for urban communities who have never had to take responsibility for their own environments, reaching this conclusion was extremely painstaking and time consuming. Through training sessions, the community opted to rehabilitate an existing MCK (for bath-laundry-latrine), which had been abandoned due to poor design and gas leakages. CARE then used a community participation methodology, in which the community itself was responsible for making decisions about the planned MCK improvement and provided the physical labor. The community formed an official kelurahan development committee (KSM). Implementation was undertaken by the Board of the KSM. An analysis of usage (frequency of visits, which facilities were used, when and by whom?) was prepared by the

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KSM, which set up a payment schedule accordingly. In December 1996 the rehabilitation of the MCK in RW05 was completed by the KSM with CARE’s support, and has been operating since without significant problems. The management system designed for the MCK by KSM is based on a monthly user fee, which covers an operating and maintenance fund for the facility. Because the facility is so popular, inhabitants from surrounding communities are also willing to pay for use of the MCK. The MCK has become successful as not only a community sanitation service but as an income generating activity ( gross income in excess of Rp. 550,000 per month) that the Board of the KSM has approached CARE for a loan of Rp. 1 million to build another bathing area, with a10 month repayment period. CARE’s contract was extended for an additional four months to focus on other hygiene and sanitation activities in Kali Anyar. Through involvement of the community in problem solving identification, planning, construction and management CARE has been able to assist RW 05 not only in providing clean and convenient latrine and washing facilities to community members, but it has also provided the community with its own source of income which can be used as capital for other infrastructure services. The community maintains the facilities with little or no support from the government, thus reducing the strain on demand for basic infrastructure services in one of the most crowded urban areas of Jakarta. As a result of the positive contribution made by NGOs to the KIP component, the project is expected to be extended to include a Community Development Grants program, which will be managed by NGOs. INDIA: Sodic Lands Reclamation Project (FY93) The project set out to sustain the reclamation of salt affected sodic lands in ten districts of Uttar Pradesh, through i) strengthening local institutions, and ii) developing effective management structures by utilizing beneficiary participation methodologies and support from local communities. In addition, the project aims to develop parallel environmental protection and agricultural production systems, and to reduce the level of poverty among families managing the sodic lands. The partnership forged between NGOs and government departments has been an essential element in achieving the already substantial outreach and established sustainability of the project, and serves to demonstrate the value of such partnership to both NGOs and government. NGOs are involved in multiple aspects of project implementation - in providing training in participatory methodologies, planning and management, assisting beneficiary selection process, and creating local management systems.

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As of 1996, the project involved 150,000 people, 92% of which were small or marginal farmers. The project’s basic unit of implementation is the Water User Group (WUG) - formed around the catchment area and including all land owners in the contiguous area. The WUGs are formed by the beneficiaries themselves and are responsible for scheduling water usage among members. The WUGs - now 5,225 strong - have taken over responsibility for basic planning, implementation, maintenance and evaluation of the project. Of this number, 1,571 have begun savings and income generation activities, reaching a total savings of Rs. 330,000. A Site Implementation Committee (SIC) is the focal point for all decision making for the project, and consists of beneficiaries, the UP Land Development Corporation (LDC), NGOs and the village headman. The SIC also serves as the project center, where training, general support and inputs are provided, payments from WUGs are reported, and technical literature is distributed. Through the involvement of women’s groups the project has been able to target the promotion of women savings groups and participation n SIC meetings, joint allotment of government land and in adult literacy programs. The achievements of the project are quite striking when compared to similar government programs. In total, 7,837 Ha of land have been reclaimed tot he benefit of 18,623 beneficiaries. Direct employment created through the project is estimated at 568,000 man-days, with 997,000 created indirectly. The wage rate is estimated to have increased 30%, and migration of labor has essentially ceased in villages within the project area. An additional 10,552 Ha has been brought under irrigation cover. According to the Task Manager, the success of the project has been in large part due to the level of grassroots involvement - facilitated through local NGOs. Sarvodaya Ashram, Hardoi is operating in nine out of the ten districts, while Jan Kalyan Maha Sameeti, Fatehpur is operating in one. The involvement of these NGOs in participatory planning, implementation and evaluation of the project activities has helped to ensure transparency in transactions, decentralized decision making, accountability and capacity building of beneficiaries and the local institutions (Site Implementation Committee, Water User Groups and Self Help Groups). Further, NGOs have been essential in establishing and maintaining close interaction with the implementing agency - UP Land Development Corporation, specifically the District Administration - to link on-going programs with the project activities and beneficiaries.

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FY96 WORLD BANK PROJECTS WITH NGO INVOLVEMENT 1. Albania Agro-processing Development 2. Albania Forestry 3. Albania Urban Works and Microenterprise 4. Algeria Industrial Pollution Control 5. Algeria Social Safety 6. Angola Social Action 7. Argentina Forestry Development 8. Argentina Mining Sector Development 9. Argentina Public Investment Strengthening 10. Argentina Social Protection 11. Armenia Social Investment Fund 12. Bangladesh Agriculture Restructuring Management 13. Bangladesh Coastal Embankment Reconstruction 14. Bangladesh Non-Formal Education 15. Bangladesh Riverbank Protection 16. Bolivia Rural Communities Development 17. Bolivia Water Supply and Sanitation 18. Bosnia Herzegovina War Victims 19. Brazil Rural poverty 20. Brazil Health Sector Reform 21. Cambodia Phnom Penh Power Rehabilitation 22. Cameroon Transport Sector 23. Chad Capacity Building 24. Chile Structural Adjustment Credit 25. China Secano Agriculture Development 26. China Second Henan Provincial Highway 27. China Basic Education 28. China Chongqing Industrial Policy Control 29. China Gansu Hexi Corridor 30. China Shanxi Poverty Alleviation 31. Columbia Urban Environment 32. Cote d’Ivoire Agriculture Sectoral Adjustment 33. Cote d’Ivoire Population, Health and Nutrition 34. Croatia Farmer Support Services 35. Dominican Republic Basic Education 36. Ecuador Environmental Management Project 37. Egypt Pollution Abatement 38. Egypt Population 39. Egypt Social Fund 40. El Salvador Basic Education 41. Eritrea Development Fund 42. Estonia Agriculture

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43. Ethiopia Sectoral Rehabilitation and Development Fund 44. Ethiopia Water Supply Development and Rehabilitation 45. Georgia Health 46. Georgia Structural Adjustment Credit 47. Ghana Basic Education 48. Ghana Urban Environmental Sanitation 49. Guinea Agricultural Services 50. Guyana Secondary Education 51. Haiti Employment Generation 52. Honduras Public Sector Modernization Structural Adjustment Credit 53. Honduras Social Investment Fund 54. India Basic Sewage Disposal 55. India Coal Environment and Social 56. India District Primary Education 57. India Hydrology Project 58. India Private Insurance Finance 59. India Orissa Water Resources Consolidation Project 60. India State Health System 61. India Uttar Pradesh Rural Water 62. Indonesia Java Secondary Education 63. Indonesia Kerinci Seblat Integrated Conservation Development. 64. Indonesia Nusa Tenggara Development 65. Indonesia Secondary Education, Java UDP 66. Indonesia Sexually Transmitted Diseases/AIDS 67. Indonesia Sulawesi Agricultural Area 68. Kazakstan Irrigation and Drainage 69. Kenya Arid Lands 70. Kenya Structural Adjustment Credit 71. Kyrgyz Republic Health 72. Kyrgyz Republic Power and Distilled Heat 73. Kyrgyz Republic Sheep and Wool Improvement 74. Lao, P.D.R. Land Titling 75. Lesotho Road Rehabilitation and Maintenance 76. Lithuania Private Agricultural Development 77. Macedonia, FYR of Private Farmer Support 78. Madagascar Social Fund 79. Malawi Fiscal Restructuring 80. Malawi Primary Education 81. Malawi Social Action Fund 82. Mali National Education Training 83. Mauritania Infrastructure and Pilot Decentralization 84. Mexico Basic Health 85. Mexico Water Resources Management 86. Moldova Agriculture 87. Mongolia Poverty Alleviation for Vulnerable Groups

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88. Morocco Emergency Drought Recovery 89. Mozambique Health Sector Recovery 90. Nicaragua FISE 91. Niger Natural Resources Management 92. Pakistan Balochistan Community Irrigation Agriculture 93. Pakistan Ghazi Barotha Hydropower 94. Pakistan Northern Health 95. Pakistan North West Frontier Province Community Infrastructure 96. Panama Education Sector 97. Papua New Guinea Economic Recovery Program 98. Paraguay Secondary Education Improvement 99. Peru Rural Roads Rehabilitation and Management 100. Philippines Mainland Second Sewerage Program 101. Philippines Transportation Grid Reinforcement 102. Russia Coal Sector Restructuring Improvement 103. Russia Coal Sector Restructuring 104. Russia Enterprise Housing Divesting 105. Russia Legal Reform Project 106. Senegal Pilot Female Literacy 107. Sierra Leone Health Sector 108. Slovenia Environment 109. St. Lucia Watershed and Environment 110. Tanzania Urban Sector 111. Thailand Highways 112. Togo Economic Recovery Adjustment Credit 113. Trinidad and Tobago Basic Education 114. Uganda Agricultural Sector Management Project 115. Uganda Environment Management 116. Ukraine Coal Pilot 117. Ukraine Housing 118. Venezuela Monagas Water 119. Viet Nam Population and Family Health 120. Viet Nam Rural Finance 121. Yemen Public Works 122. Yemen Vocational Training

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LIST OF NGO WORLD BANK COMMITTEE MEMBERS (as of Jan 1997)

AFRICA Inter-Africa Group (IAG) Ethiopia Representative: Jalal Abdel Latif Institut Africain pour le Developpement Economique et Social -Centre Africain de Formation (INADES-FORMATION) Cote d’Ivoire Representative: Rene M. Segbenou Integrated Social Development Centre (ISODEC) Ghana Representative: Charles Abugre Kagiso Trust (KT) South Africa Representative: Horst Kleinschmidt Organization for Rural Associations for Progress (ORAP) Zimbabwe Representative: Temba Ndiweni ASIA Society for Participatory Research in Asia (PRIA) India Representative: Dr. Rajesh Tandon Centre for Human Development (PROSHIKA) Bangladesh Representative: Qazi Faruque Ahmed Asian NGO Coalition for Agrarian Reform and Rural Development (ANGOC) Philippines Representative: Antonio B. Quizon Freedom from Debt Coalition (FDC) Philippines Representative: Teresa Diokno Pascual

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Lanka Jathika Sarvodaya Shramadana Sangamaya (Inc.) ( LJSSS) Sri Lanka Representative: Dr. Vinya Shanthidas Ariyaratne EUROPE Society for Improvement of Quality of Life (SIQL) Croatia Representative: Igor Matutinovic Centre de Recherche et d’Information pour le Developpement (CRID) France Representative: Laurence Tubiana Swedish Mission Council (SMC) Sweden Representative: Mats Haarsmar Swiss Coalition of Development Organizations Switzerland Representative: Bruno Gürtner Association of Protestant Development Organisations in Europe (APRODEV) United Kingdom Representative: Paul Spray LATIN AMERICA AND THE CARRIBIAN Asociacion Latinoamericana de Organizaciones de Promocion (ALOP FOLADE) Ecuador Representative: Manuel Chiriboga Caribbean Policy Development Centre (CPDC) Barbados Representative: Chris Sinckler Brazil Network on Multilateral Financial Institutions (RBASIL) Brazil Representative: Fatima Vianna Mello Equipo Pueblo (PUEBLO) Mexico Representative: Carlos Heredia

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Centro de Estudios y Promocion del Desarrollo (DESCO) Peru Representative: Aberlardo Sanchez-Leon MIDDLE EAST The Union of Palestinian Medical Relief Committees (UPMRC) Israel Representative: Dr. Mustafa Barghouthi NORTH AMERICA AND THE PACIFIC Institute for Development Research (IDR) U.S.A. Representative: Jane Covey Community Aid Abroad (CAA) Australia Representative: Andrew Hinton Hewett Inter-Church Coalition on Africa (ICCAF) Canada Representative: Ruth Rempel Pacific Asia Resource Center (PARC) Japan Representative: Kitazawa Yoko INTERNATIONAL Coorperation Internationale Pour le Developpment et la Solidarite (CIDSE) Belgium Representative: Dr. Koenraad Verhagen International Save the Children Alliance (SCF UK) U.K. Representative: Mr. Michael Aaronson

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RESIDENT MISSION NGO SPECIALISTS/CONTACTS

Full or Part-time NGO Specialists have been identified in the following Resident Missions as of March 199713

AFRICA ASIA Angola Bangladesh Burkina Faso China Burundi India Benin Indonesia Cameroon Nepal Central African Republic Pakistan Chad Philippines Congo Sri Lanka Côte d’Ivoire Thailand Ethiopia Vietnam Ghana Guinea EUROPE AND CENTRAL ASIA Kenya Albania Mali Azerbaijan Malawi Belarus Mauritania Bosnia/Herzegovinia Madagascar Bulgaria Niger Estonia Nigeria Hungary Rwanga Estonia Senegal Hungary South Africa Kazakhstan Tanzania Kyrgyz Republic Togo Latvia Uganda Lithuania Zambia Macedonia Zimbabwe Moldova Poland Romania Russia Turkey Ukraine

Uzbekistan

13 While in Africa the title NGO Liaison Officer is used, in LAC they are called NGO and Social Analysis

Specialists; and in ECA External Affairs Officers have been asked to serve the function along-side other responsibilities.

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LATIN AMERICA AND CARIBBEAN MIDDLE EAST AND NORTH AFRICA Argentina Egypt Bolivia Yemen Brazil Columbia Costa Rica Ecuador Jamaica Mexico Peru Venezuela

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GLOSSARY OF TERMS ACE Parent Association AGR Agriculture AIC Appreciation-influence-control APAC Aimiag Poverty Alleviation Council ARPP Annual Report on Portfolio Performance BA Beneficiary Assessment BP(s) Bank Procedure(s) CAS(s) Country Assistance Strategy(ies) CBO(s) Community-based Organization(s) CGAP Consultative Group to Assist the Poorest CGIAR Consultative Group on International Agricultural Research EA Environmental Assessment EAP East Asia and Pacific ECA Europe and Central Asia Region EDI Economic Development Institute ERP Economic Rehabilitation Program ESDVP Environmentally Sustainable Development Vice- Presidency ESW Economic and Sector Work FIAHS Fund for Innovative Approaches in Human and Social Development FICONG Fortalecimiento Institucional y Capacitacion para Organizaciones non Gubernamentales FSU Former Soviet Union FY Fiscal Year GBHP Gazi Barotha Hydropower Project GEF Global Environment Facility GP(s) Good Practice(s) HCDVP Human Capital Development Vice Presidency ICHS International Christian Humanitarian Services ICNL International Center for Non-for-Profit Law IDA International Development Association IDF Institutional Development Fund IFC International Finance Corporation IGP Inter-agency Group on Participation IP Implementation Progress IUCN World Conservation Union JUDP Jabotabek Urban Development Project KIP Kampong Improvement Program KSP Keluraha Development Committee LAC Latin America and Caribbean Region LAMP Learning and Action to Mainstream Participation

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LCNRM Local Council for Natural Resource Management MENA Middle East and North Africa Region MIGA Multilateral Investment Guarantee Agency MOHP Ministry of Health and Population NGO(s) Non-Governmental Organization(s) NRM Natural Resource Management OD(s) Operational Directive(s) OED Operations Evaluation Department OP(s) Operational Policy(ies) PA(s) Poverty Assessment(s) PAF Poverty Alleviation Fund PAP Poverty Alleviation Program PPA(s) Participatory Poverty Assessments PAPSCA Program for the Alleviation of Poverty and the Social Costs of Adjustment PHN Population, Health and Nutrition PHU(s) Peripheral Health Units PIC(s) Public Information Center(s) PRD Policy Research Department PRIA Society for Participatory Research in Asia PSM Public Sector Management PSP Poverty and Social Policy Department RAP Resettlement Action Plan RM(s) Resident Missions RW Ruhan Warga SA Social Assessment SAP(s) Structural Adjustment Program(s) SAPRI Structural Adjustment Participatory Review SAR(s) Staff Appraisal Report(s) SFD Social Fund for Development SGP Special Grants Facility SPAC Sum Poverty Alleviation Council UN United Nations UNDP United Nations Development Program VGO(s) Vulnerable Group Organization(s) WEMTOP Women’s Enterprise Management Training Program WMTOP Women’s Management Training Outreach Program WUG(s) Water User Group(s) WWF World Wildlife Foundation ZOPP Objectives-oriented project planing