DEVELOPMENT COMMITTEE(Joint Ministerial Committeeof theBoards of Governors of the Bank and the Fundon theTransfer of Real Resources to Developing Countries)

DC2024-0002
March 29, 2024

From Vision to Impact
Implementing the World Bank Group Evolution
Attached is the document titled “From Vision to Impact: Implementing the World Bank Group Evolution”
for the April 19, 2024 Development Committee Meeting.

For Discussion
Development Committee: Friday, April 19, 2024

From Vision to Impact:
Implementing the World Bank Group Evolution

Update to Governors
Development Committee
March 2024

Table of Contents
Executive Summary..........................................................................................................................................v
I.

Introduction ..............................................................................................................................................1

II. Managing Results for People and the Planet .........................................................................................3
III. Implementing the New World Bank Group Playbook .........................................................................4
Doubling Down on Impact .............................................................................................................................4
Modernizing our Approach to Delivery to Clients ......................................................................................... 8
IV. Enhancing the World Bank Group's Financing Model ......................................................................11V.

Next Steps and Questions .......................................................................................................................13

References .......................................................................................................................................................15
Annex 1: Summary of Evolution Deliverables as of Spring Meetings 2024 ..............................................16iii

Abbreviations
CAF
Cat-DDO
CRDC
CRW+
CPF
DFI
DPF
EDs
E/L
ESF
ESG
FIF
FCV
FY
GCP
GEMs
IBRD
IDA
IFC
IMF
IPF
IPF-DDO
MDB
MIGA
MoU
MPA
OECD
PSIL
SDGs
TF
WESP

Capital Adequacy Framework
Deferred Drawdown Option for Catastrophe Response
Climate Resilient Debt Clauses
Crisis Response Window PlusCountry Partnership Framework
Development Finance Institution
Development Policy Financing
Boards of Executive Directors
Equity-to-Loan
Environmental and Social Framework
Environmental, Social, and Corporate Governance
Financial Intermediary Funds
Fragility, Conflict, and Violence
Fiscal Year
Global Challenge Program
Global Emerging Markets Risk Database
International Bank for Reconstruction and Development
International Development Association
International Finance Corporation
International Monetary Fund
Investment Project Financing
Deferred Drawdown Option for Investment Project Financing
Multilateral Development Bank
Multilateral Investment Guarantee Agency
Memorandum of Understanding
Multiphase Programmatic Approach
Organization for Economic Cooperation and Development
Private Sector Investment Lab
Sustainable Development Goals
Trust Fund
Warehouse-Enabled Securitization Platformiv

Executive Summaryi. We are making progress towards becoming a better and bigger World Bank Group, able to help clients
address development challenges with greater impact and speed. In Marrakech, Governors endorsed theWorld Bank Group’s bold new vision of a world free of poverty on a livable planet, along with thedeliverables under the evolution process. Since then, the World Bank Group has taken concrete steps to start
the implementation and operationalization of the new playbook and to stretch our financial capacity to address
our clients’ most pressing development challenges. While we are on our way, there is much still to do.
ii. With our new playbook, we are redoubling our focus on impact, speed, and efficiency for the benefit of
our clients. The steps taken since Marrakech will enable our clients to benefit from: a strengthened resultsorientation, with a new Scorecard under development; improved operational effectiveness and efficiency,
including strengthened and streamlined implementation of the World Bank’s Environmental and Social
Framework (ESF), faster project preparation, and an emphasis on stronger implementation support; new crisis
preparedness and response tools; the development of Global Challenge Programs (GCPs); a Knowledge
Compact to drive impact in our work; a World Bank Group Guarantee Platform, informed by the work of thePrivate Sector Investment Lab (PSIL); strengthened partnerships; and the establishment of joint World Bank
Group representation in 20 countries. The playbook will allow us to deliver to all our clients across income
levels, including the poorest countries and those affected by fragility, violence, and rising conflicts globally.
We will be better equipped to combat extreme poverty, inequality, and to address global challenges.
iii. We are working to become a better and bigger bank through the improvements to our financing modelthat increase the Group’s financing capacity. Since Marrakech, we have fundraised for the International
Development Association (IDA) Crisis Facility, implemented enhancements to the IDA Capital Adequacy
Framework that will enable $20 billion of additional financing over IDA20-24, and taken further measures tomaintain IDA’s financial capacity of US$30 billion per year for Fiscal Years (FY) 24-25. We have developed
a framework for financial incentives for the International Bank for Reconstruction and Development (IBRD)
countries to accelerate investments that address global challenges and are making progress towards enhancing
the value of callable capital. The International Finance Corporation (IFC) and the Multilateral Investment
Guarantee Agency (MIGA) continue to utilize their strong capital positions to scale investment and guarantee
issuance volumes. This includes new instruments to mobilize private capital, such as thematic financing or
Synthetic Risk Transfers, and contingent liquidity support facilities together with political risk guarantees. IFC
and MIGA are pursuing additional sources of concessional finance to support the Group’s mission and vision.
iv. Looking forward, we will continue work to become a better bank, while stepping up efforts to become abigger bank, with the IDA21 replenishment an immediate priority. Management and the Board willcontinue to engage as we strengthen the Knowledge Bank, develop Scorecard methodologies, and begin
reporting on indicators, and we will advance the implementation of the new playbook to achieve impact at
scale for our clients. The IDA21 replenishment is a critical next financial step to increase support to the poorest
countries. For IBRD, instruments such as hybrid capital, a portfolio guarantee platform, and a Livable Planet
Fund will become operational as soon as shareholders, other donors, and partners provide the necessaryfinancial support. These initiatives have in common powerful leveraging – a key feature of the development
finance offered by the World Bank Group. A shareholder review is scheduled for 2025. Management will workwith shareholders to explore the possibility of establishing a review process to assess the alignment of capital
resources with ambition. These measures will help us to deliver on the new vision and mission of the WorldBank Group.
v. We welcome feedback from the Governors on the following:i. What are Governors’ views on early progress in aligning the World Bank Group playbook with the new
vision of a world free of poverty on a livable planet?
ii. What guidance do Governors have on steps to strengthen our financing capacity to become a bigger WorldBank Group, including securing a robust and ambitious IDA21 replenishment?
v

Crisis Preparedness and Response Toolkit
and Climate Resilient Debt Clauses

IBRD Equity-to-Loan (E/L)
Ratio Reduction

Global Emerging Markets Risk Database

0

IBRD Hybrid Capital

Knowledge Compact

IBRD Portfolio Guarantee
Platform

Enhanced Data BankWorld Bank Group Academy

Framework for Financial
Incentives for IBRD Countries

Country Private Sector Diagnostics
and Public Finance Reviews

Co-financing Incentives andPlatform

One World Bank GroupCountry Representation

Funding the IDA Crisis Response
Window Plus (CRW+)

Private Sector Investment Lab
ESF Implementation Strengthening
and Streamlining

IDA 21 LaunchWorld Bank Group Guarantee
Platform

IDA Capital Adequacy Framework
Review and Balance Sheet
Optimization

Operational Effectiveness andEfficiency Measures
Reformed Country Engagement Modeland Implementation Support

Warehouse-Enabled
Securitization Platform

IBRD Enhanced Callable Capital
Livable Planet Fund

Global Challenge Programs

New IFC and MIGA Instruments to
Mobilize Private Capital

Budget Change Engagementsvi

Launchedby SpringMeetings 2024

Under
Development

I. Introduction
1.
The international community must set a new course of action to address the emergencies ofpoverty and the growing number of global challenges facing people and the planet. Despite a barrage ofshocks during the past four years, major economies are showing signs of recovery. After the fastest rise ininterest rates in 40 years, global inflation has come down and a ‘soft landing’ seems possible (World Bank2024). Yet, the outlook for developing countries remains troubled, with rising risks of debt distress, increasing
frequency of extreme climate events, heightened geopolitical tensions, wars and conflicts. Today, people in
one out of every four developing economies are poorer than they were before the COVID-19 pandemic. Record
numbers of people are displaced.
2.
Many developing countries are facing particularly challenging prospects. The Sustainable
Development Goals (SDGs) are further off their 2030 trajectory (United Nations 2023), while fiscal space inmany countries is increasingly constrained because of weak growth and rising debt burdens. The multiple
intertwined crises in recent years have increased rates of poverty and inequality, with shrinking job
opportunities and life prospects, notably for women and youth. Populations in IDA countries, especially theextreme poor, struggle with access to the most basic human needs of food and nutrition security, functioning
and emergency-ready healthcare systems, and access to clean water and energy – all aggravated by increased
fragility as well as the consequences of climate change. The impacts of these multiple shocks hit the mostvulnerable populations the hardest. Addressing the challenges developing countries are facing is fundamental
to eradicating poverty on a livable planet.
3.
Countries experiencing fragility, conflict, and violence (FCV) also face particular development
challenges, often with persistent poverty and declining human capital. Chronic instability in some of theworld’s poorest countries, civil and interstate wars as well as violence and crime in several middle-income
countries, and the continued impacts of crises such as the pandemic, climate shocks and conflict hinder andeven reverse development progress in many FCV contexts. These trends and dynamics have profound effects
on people’s lives within these countries and can have destabilizing effects across borders, such as throughtransmission of criminality and violence, migration and forced displacement, and disruption of trade and supply
chains. This reflects the local and global need for increased anticipatory action, prevention, and response in
FCV contexts. By 2025, more than half of all people living in extreme poverty will be in countries classified
as situations of fragility and conflict (World Bank 2023b), many of which are also low-income IDA countries.
Furthermore, the countries that are most vulnerable to climate change have significant overlap with thosecountries that are affected by FCV.
4.
Women and girls bear the biggest burdens of persistent poverty and the crises increasingly
affecting developing countries. The forthcoming World Bank Group Gender Strategy (2024-2030)
acknowledges the centrality of investing in women and girls while recognizing the disadvantages facing men
and boys and the vulnerabilities arising from the intersection of gender with poverty, ethnicity, disability, andother characteristics. It reaffirms the World Bank Group’s commitment to nondiscrimination, inclusion, andequality of opportunity, encompassing sexual and gender minorities. The strategy will be tailored to specificcontexts, such as fragility, and to the needs of specific groups, such as adolescent girls. It proposes to involvemen and boys to address issues specific to them and issues that impede gender equality.
5.
To better respond to these critical challenges, the World Bank Group is taking decisive action.
With endorsement of the evolution process at the 2023 Annual Meetings in Marrakech, the World Bank Groupand its shareholders have been working with urgency to implement the agreed steps to deliver on our new
vision of a world free of poverty on a livable planet. We have made progress toward becoming a better bankthat will be equipped with the necessary playbook, knowledge, and financial capacity to support all our clients,
including in middle-income countries, lower-income IDA recipients, small states, and countries experiencing
FCV. We are evolving to address their most pressing development challenges and provide life-changing
initiatives for their citizens.
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6.
Steps are under way to operationalize our new mission to end extreme poverty and boost sharedprosperity on a livable planet. We need to redouble efforts to achieve the goals of poverty reduction and sharedprosperity. Achieving poverty reduction, shared prosperity, and a ‘livable planet’ all require urgent attention
to the eight global challenges identified in the World Bank Group evolution process, as well as treating climate
adaptation as smarter and more climate-resilient development. The GCPs under preparation will bring together
our World Bank Group value proposition to address global challenges with a clear line of sight to the peoplecentric Scorecard outcomes. Our new Scorecard includes indicators that capture aspects of the ‘livable planet’(such as in areas related to climate mitigation and adaptation, biodiversity and nature, and life essentials likewater and food), closely interlinked with efforts to lift people out of poverty throughout the world. We arealigning and sharpening the focus of our knowledge in these areas to provide the relevant analyticalunderpinnings to inform our country-based development model. The introduction of the new Crisis
Preparedness and Response Toolkit for all countries, complemented by the Climate Resilient Debt Clauses(CRDCs) for small states, helps countries prepare for and mitigate the financial risks of disasters. The
introduction of innovative results-based financing terms advances climate goals and our ambitions inaddressing global challenges more broadly. Overall, implementation of the new playbook, securing a robust
IDA21 replenishment, and strengthening IBRD’s financing capacity are key to doubling down on poverty andshared prosperity.
7.
Moreover, we have increased our ambition to drive climate action and build resilience. We are
the biggest multilateral funder of climate investments in developing countries, and we intend to go further in
helping countries rise to the challenges of climate change. At the COP28 United Nations Climate Change
Conference, the World Bank Group committed to devote 45 percent of its financing to climate-related projects
by the end of FY25, up from the current target of 35 percent, with the ambition to split this financing equally
between adaptation and mitigation (see Box 1 for more details on the Group’s work on all aspects of climate
action). In addition to boosting resilience and adaptation among those hardest hit by the effects of climatechange, World Bank Group projects will focus on safeguarding ecosystems and biodiversity, to protect thehealth of people and the planet.1 The World Bank Group has also been tasked to establish the fiduciary structureof the fund to address loss and damage associated with the adverse effects of climate change.2 This fund will
become operational as soon as shareholders and other donors agree on its governance structure and provide
the necessary financial support.
Box 1: Delivering on Climate Action
In FY23, the World Bank Group delivered a record $38.6 billion (or 41 percent of overall lending) in climate financesupporting efforts to end poverty on a livable planet. Overall, this is a 22 percent increase in climate finance comparedto the previous FY, also exceeding the target of 35 percent set out in the World Bank Group’s Climate Change Action
Plan 2021-2025.
We are working with clients to address their climate and development needs together. The Climate Change Action
Plan supports countries and private sector clients to maximize the impact of climate finance, aiming for measurable
improvements in adaptation and resilience and measurable reductions in GHG emissions, while aligning financial flows
with the goals of the Paris Agreement. Our work integrates climate considerations into development planning andinvestment, building resilience in key sectors and providing financial and technical support to countries for
implementing adaptation measures. Our support has impact on sectors that are responsible for generating mostemissions globally – including energy; agriculture, food, water, and land; cities; transport; and manufacturing – while
also building climate adaptation across all social and economic sectors as part of smarter and more climate-resilient
development. Transforming sectors across the economy to be more climate-resilient is key for countries at all stagesof development and requires action from the public sector to catalyze the private sector to unlock major economic
opportunities and to create new jobs.

12This includes addressing plastic pollution, which impacts health, livelihoods, and the environment (World Bank 2022).
For more details, see https://www.worldbank.org/en/programs/funding-for-loss-and-damage.

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8.
The rest of this paper reports on the way the World Bank Group evolution process is translated
into action. It provides an update to Governors on the next steps in the implementation of the new playbook
and how to further increase the World Bank Group’s financing capacity to achieve our new vision and mission.
A summary of major aspects of the evolution process is presented in Annex 1.
II. Managing for Results and Accountability
9.
The new World Bank Group Scorecard for FY 24-30 will establish a rigorous approach andframework to measure our collective results in a streamlined and outcome-oriented fashion. The WorldBank Group Boards of Executive Directors (EDs) endorsed the direction of the new Scorecard in December
2023, marking an important milestone. We are now in the process of implementing the new Scorecard througha phased approach. The new Scorecard framework will be announced ahead of the Spring Meetings 2024. A
first batch of indicators is planned to be reported in June 2024. We aim to report the rest by the Annual
Meetings. New incentives are under development to ensure that outcome management and measurement
become more systematically integrated into operational and strategic management.
10.
The new Scorecard represents a significant step forward in how we will measure results andhave accountability for outcomes. The Scorecard is organized around 15 outcome areas, which are peoplecentric, and that cover all dimensions of the new mission. It includes cross-cutting areas such as ‘Gender
Equality’ and ‘Youth Inclusion’ and ‘Better Lives for People in Fragility, Conflict, and Violence (FCV)’ tohighlight the importance of these issues in reaching development outcomes. Methodologies for all indicators
are being developed, with regular technical briefings provided to the Board. These indicators set newmeasurement standards for the institution. First, the Scorecard shifts the measurement of results from inputs
and outputs to development outcomes, putting people and planet at the center. Second, the new methodologies
will incorporate the latest measurement innovations within each thematic area, while ensuring alignment of
Scorecard indicators with all SDGs. The Scorecard will also establish transparent protocols across the WorldBank Group, the first-ever attempt to harmonize the measurement of joint results across our public and private
sector delivery and across delivery instruments. Finally, we are also keeping track and holding ourselves
accountable for enabling and mobilizing private sector finance. An interactive online platform is underdevelopment to integrate results data from the Scorecard, with interactive visualizations and results narratives.
11.
As the systems are upgraded and an interactive platform is developed, we will use the Scorecard
to ensure all programs and projects are aligned towards the vision of ending poverty on a livable planet.
The new indicators are being incorporated into the results frameworks of new operations, including those thatwill be delivered through the GCPs under development, as well as existing operations wherever possible. They
are being cascaded through World Bank Group Country Partnership Frameworks (CPFs), ensuring thecomprehensive capture of results and effective utilization of results data at both project and country levels.
New information technologies and workflows are underway to help input quality data and automate theaggregation of results, supported by new guidance, procedures, and learning opportunities for staff,
management, and clients. Management is also setting up systems to disaggregate the Scorecard by key
variables: all relevant indicators will be disaggregated by country income levels, gender and youth, as well as
FCV dimensions, allowing for the monitoring of trends to ensure that support is provided where it is mostneeded. This will give everyone a deeper understanding of who benefits from our project and program delivery,
where these benefits are realized, and how they are achieved.
12.
In addition to our strengthened focus on results, we will continue to hold ourselves accountable
more broadly as we become a better bank and implement the new playbook. The World Bank Groupaccountability framework, which includes the Integrity, Internal Audit, and Independent Evaluation Groups,
will continue to ensure that World Bank Group activities are conducted with integrity, efficiency, andeffectiveness. A systematic and disciplined approach to evaluate and improve the effectiveness of risk
management, control, and governance processes across the World Bank Group will continue to be key.
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III. Implementing the New World Bank Group Playbook
13.
The new playbook is advancing and will enable us to deliver on our vision of a world free ofpoverty on a livable planet through impactful solutions at scale and speed for all our clients. Its
implementation is guided by our commitment to address development challenges that originate at both thelocal and global levels, by strengthening our country-based development model, knowledge, and partnerships,
and enhancing operational efficiency and effectiveness as One World Bank Group. Progress is being made in
the following areas:
Doubling Down on Impact
14.
We are putting in place innovative operational enhancements to achieve scale, speed, andreplicability for our clients. New operational innovations – including our Crisis Preparedness and Response
Toolkit and the forthcoming GCPs – remain grounded in a country-based approach, while helping us to scaleand replicate impactful programs that tackle global challenges through a comprehensive set of public andprivate sector solutions. Reforms to our Country Engagement model will be discussed with the Board before
the Annual Meetings in 2024. This will include strengthening CPFs by mobilizing the knowledge needed
through our new Knowledge Compact for Action, aligning priority areas at the country level with the new
vision and mission as reflected in our Scorecard, and maximizing the impact of a One World Bank Group andexternal partnerships. This strengthened country engagement model will help us meet the specific needs of allclient countries, with a firm commitment to support those experiencing FCV (see more on approach for support
for countries affected by FCV in Box 2 below).
15.
We are rolling out our new Crisis Preparedness and Response Toolkit as a crucial mechanism
to achieve the resilience objectives of our new vision and mission. The new toolkit provides countries with
innovative flexibilities to quickly access emergency response financing when crises occur, reducing financial
trade-offs between using resources for long-term development priorities and emergency response needs. It also
strengthens crisis preparedness in the first place as part of accessing the new financing flexibilities, groundedin strategic country engagement and technical assistance to assess risks and strengthen both preparedness andresponse capacity. The new flexibilities and increased focus on upstream preparedness will be especially
important to support countries in FCV contexts, where multiple crises frequently have compounding impacts
and capacity to respond can be especially weak. They will also contribute to the broader pandemic preparedness
agenda, with multiple enhanced tools to support clients to improve preparedness for future health emergencies
and to support rapid response if a pandemic does occur, complementing efforts of the proposed GCP on healthemergencies described below. We have high ambitions to support crisis preparedness in all our IBRD and IDA
client countries, with the aim to enable at least 50 countries to have enhanced crisis response mechanisms inplace by the end of this calendar year. These IBRD and IDA innovations will complement efforts underway todesign a parametric insurance backstop for MIGA-enabled public sector projects and for IFC to respond withagility to assist private sector clients in crisis preparation and response, including with innovative new tools
and products. Management is launching a substantial communications, outreach, training, and guidance
campaign, for both internal and external audiences, to achieve these ambitions, as we roll out the following
new elements of the toolkit:The new Rapid Response Option will allow governments to repurpose up to ten percent of
undisbursed balances from across their Bank lending portfolio for immediate emergency response.
The repurposed funds can be quickly disbursed through a Contingent Emergency Response Project,
an innovative Investment Project Financing (IPF) project prepared in advance for future emergency
response, or by topping up disbursements of an active Development Policy Financing (DPF) operation
with a deferred drawdown option for catastrophe response (Cat-DDO).
Increased access to contingent financing for crisis response. The existing country limits on Cat DDOs
have been doubled, with special provisions to increase access for small states; scalable financing for a
Cat DDO is now available, to scale-up the amount available under an active Cat DDO if needed after4

a natural disaster or a health crisis occurs; and IPF with a Deferred Drawdown Option (IPF-DDO)
feature has been formalized to finance specific anticipated expenditures after a crisis.
Expanded access to catastrophe bonds and insurance. All countries now have the option to embed
these risk management products into their Bank financing operations, expanding borrowers’ optionsin using these tools to manage the risks of high-intensity but low-frequency disasters.
The CRDC option, announced in Marrakech, provides eligible small state borrowers the option todefer interest as well as principal payments for up to two years in the event of an extreme natural
disaster (more details in paragraph 30 below).
Box 2: Supporting Countries Affected by FCV – A World Bank Group Priority

Through our evolution process, the World Bank Group is reinforcing our commitment to support people and countries
affected by FCV. The needs are clear – by 2025, more than half of all people living in extreme poverty will be incountries classified as situations of fragility and conflict (World Bank 2023b). We are already responding, with annual
increases of more than 27 percent in IBRD and IDA financing to those countries over the past five years, along withincreases in IFC investments and MIGA guarantees. This has allowed enhanced support to client countries striving toprevent conflict and transition out of FCV, significant strides in gender-focused programming, dedicated support toclients affected by forced displacement and other regional FCV spillovers, as well as increasingly remaining engaged
to preserve development gains in the most challenging FCV situations. A lot remains to be done. We have learned that
we need to invest more in understanding prevention of crisis, conflict, and violence; address the drivers of FCV earlier;and adapt more flexibly to shocks and crises, underpinned by consistent applications of our policies. In addition, we
need to deepen our attention and support to middle-income countries experiencing violence and subnational fragility.
Our new playbook and expanded financing capacity will enable us to apply lessons learned in volatile contexts andcontinue to enhance our support, with an ambitious operational and knowledge agenda. Fragility is exacerbated byclimate change and closely intertwined with food and water insecurity, each of which will be addressed through a FCVlens in proposed GCPs. The new flexibilities and focus on upstream preparedness in the expanded crisis toolkit willbe especially important to support countries in FCV contexts, where multiple crises frequently have compounding
impacts. Our expanded implementation support will build capacity in fragile states, including through hands-on
support for procurement and implementation of the ESF. Our strengthened Country Engagement model will help
ensure that we foster resilience and frame our programs to address drivers of fragility in a given country context, withsupport for state-building, private sector development, continued social service delivery, or other priority needs. We
will strengthen our engagement with partners at the country level, including with local partners, and enhancecollaboration with humanitarian organizations. The IDA Private Sector Window (PSW) will continue to help de-riskand catalyze private investment in FCV settings as we commit to working across the World Bank Group to leverage
public and private sector solutions in the poorest and most difficult IDA markets. We will hold ourselves accountable
for achieving results in FCV contexts, with FCV as a cross-cutting area in the new World Bank Group Scorecard andall indicators disaggregated to show progress in FCV contexts. And we will continue working with shareholders toensure that our financing capacity is in line with our ambition, including with an expected strong focus on support tocountries affected by FCV in IDA21.

16.
The Global Challenge Programs are geared to help countries tackle key global challenges withgreater scale, speed, and impact. The GCPs are envisaged as joint World Bank Group offerings, bringing
together our public and private sector arms to more effectively crowd-in public and private sector solutions
and financing. They intend to leverage partnerships with other development actors. They will use knowledge
to support innovation and learning, including through impact evaluations. To be delivered through our countrybased development model, the six GCPs will provide replicable and scalable approaches in the areas of energy,
food, water, forests and biodiversity, health emergencies, and digital.3 Each GCP will embed a special focus
on issues of FCV to identify solutions in those country contexts, in line with the World Bank Group FCV
strategy. The GCPs are being designed with a strong line of sight to private capital mobilization, recognizingthat domestic resources and other development financing will not suffice to address the scale of global
challenges. GCPs will be available to deliver solutions in all countries, independent of income levels and size.
3

For a description of the thematic areas of the six GCPs, see World Bank (2023a): Box 4.

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17.
The six GCP Approach Papers are being developed for discussion with the World Bank GroupEDs between March and June 2024. We are aiming high. Each GCP is designed to deliver significantly toresults included in the new World Bank Group Scorecard and will track their contributions to outcomes using
the Scorecard indicators. Two GCP Approach Papers (on Forests for Development, Climate & Biodiversity
and Energy Access and Transition) have been developed and first engagements with the World Bank GroupEDs are ongoing. The Energy Access and Transition GCP expects to deliver early results through regional
approaches such as energy access interventions across Africa, which aim to provide access to electricity for as
many as 200 million people by 2030. The Forests for Development, Climate and Biodiversity GCP aims toscale up sustainable forest landscape and ecosystem solutions through regional programs in large forest basins,deforestation free supply chains and activities to support the bio-economy and economic diversification. The
approach papers for the remaining four GCPs (Accelerating Digitalization; Food and Nutrition Security;
Enhanced Health Emergency Prevention, Preparedness and Response; and Fast-Track Water Security andClimate Adaptation) are currently being developed and engagements with the World Bank Group EDs on theseare expected by the end of FY24.
18.
The Knowledge Compact for Action reinforces the complementarity between knowledge andfinancing to deliver impactful development solutions to clients. The new Compact leverages the potentialof the digital revolution to make available the latest knowledge to tackle emerging global challenges and scale
up development outcomes. It aims at providing clients with rapid access to policy advice, expertise and knowhow, including from financing operations, as well as the latest research, data and tools to formulate robust
development policies and programs. Learning from impact evaluations that are focused over longer time
periods will be a key component, to draw evidence-based lessons from country engagements that can be
replicated, adapted, and scaled up in different contexts. We will deliver knowledge to clients under the fourpillars of enhanced and streamlined products, partnerships, learning, and systems:Global, regional, and country knowledge products will build on and complement each other to support
the new strategic direction and alignment with global challenges, the increased focus and selectivity
in country programs, and the new World Bank Group Scorecard. In particular, core analytics,
representing a package of priority knowledge products to shape country engagement, are being
strengthened. This stepped-up investment in knowledge will inform our CPFs and lay the foundations
for more impactful country programs and operations. A revitalized Data Bank will prioritize collection
and access to a wider range of foundational and frontier data.
A strategic approach to partnerships will focus on collaborations and knowledge exchange that bringgreater value and relevance to clients and improve operational impact. In addition, we are expanding
support for knowledge ecosystems in developing countries through partnerships with local institutes,
academia, and civil society organizations. In addition to upstream and advisory efforts, IFC isstrengthening its research program, leveraging existing and new partnerships with academic
institutions, development partners and the private sector to share knowledge and help prepare clientsto engage in new areas and products. MIGA is strengthening existing partnerships and launching newones to increase knowledge sharing on the role and changing nature of foreign investment flows inscaling development outcomes.
To support capacity development for clients, partners and staff, a new World Bank Group Academy
is being launched. This Academy draws on technical expertise from across the Group and will leverage
our global footprint, regional hubs, and specific expertise. This will include developing solutions
tailored to FCV contexts, where capacity constraints can be particularly significant. It will also engage
external partners to maximize reach, scale, and impact. Capacity development for clients will be a coreservice provided by the Group’s Academy and eventually lead to better project implementation forfaster and more impactful results. Fostering a culture of continuous learning for our staff will help tomaintain thought leadership and technical expertise needed for the Academy. Formal accreditation
programs, shaped by global and regional corporate priorities as well as client demand, will be
developed for technical staff, enhancing the value of knowledge delivered to clients and the quality ofcountry engagement.
6

Systems to underpin high value knowledge products, partnerships, and learning are being
strengthened. To energize the Bank’s work with cutting edge knowledge and data, Practice Groups
will be organized into vertical vice presidencies aligned with the World Bank Group’s new mission –People, Prosperity, Planet, Infrastructure and Digital. The proposed new structure is aimed at
facilitating knowledge flows and strengthen knowledge base that could support operations. The
efficiency and effectiveness of both processes related to knowledge work and engagement with clientsis being enhanced. Moreover, the World Bank Group is investing in its digital capabilities andmodernizing knowledge platforms to facilitate access to its vast knowledge base for clients, staff, andpartners.

19.
Steps are underway to mobilize additional resources to meet the large financing needs of ourclients. We are making concerted efforts to mobilize resources on both the public and private fronts. We are
currently engaging with a subgroup of countries with low tax collection or inefficient tax structures throughintensified technical assistance along with lending and analytical work. On analytics, the enhanced Public
Finance Review has been launched as a key first step to strengthen domestic resource mobilization efforts.
Several new analytical tools and models for fiscal and tax analysis are under preparation. This core analyticalproduct is currently being piloted in seven countries to support the creation of fiscal space by providing theanalytical foundation for tax reforms as well as improvements in expenditure efficiency and effectiveness. The
updated product is aligned with the expanded World Bank Group vision and mission by analyzing how fiscal
policy can support growth, reduce poverty, boost shared prosperity, and address climate change. We have also
increased collaboration with the International Monetary Fund (IMF), the Organization for Economic
Cooperation and Development (OECD), and other partners in this area.
20.
A concerted effort on scaling up private capital mobilization to address development challenges
is ongoing. Enabling and mobilizing private capital is a One World Bank Group priority; it cuts across many
aspects of implementing the new playbook and will be tracked in the new Scorecard. The PSIL, a partnership
between the private sector and the World Bank Group, is informing these efforts through concrete
recommendations that better align World Bank Group approaches with the needs and speed of private financeand ultimately to leverage more private capital for development. Specific efforts underway include:








To provide greater clarity of regulatory policies, which the World Bank Group will identify andsupport for example through the upgraded Country Private Sector Diagnostics. Pilots are ongoing infive countries and are expected to be completed in FY24. They will have a greater sectoral focus andidentify opportunities for Private Capital Mobilization and required Private Capital Enabling reforms.
A methodology for measuring Private Capital Enabled is being developed to capture outcomesachieved with World Bank Group support.
To simplify access to guarantees (described in the following paragraph).
To develop solutions for foreign exchange risk mitigation, including solutions to increase local
currency financing, to facilitate private investment, especially for the green transition.
To scale an originate-to-distribute model that can provide baskets of investments to institutional
investors. This is a medium-term effort, starting with IFC’s engagement with market stakeholders toadvance the Warehouse Enabled Securitization Program (WESP); the first test securitization is plannedby the end of calendar year 2024, initially containing IFC assets, with the possibility to broaden theoriginators to include other Multilateral Development Bank (MDBs) and other Development FinanceInstitutions (DFIs) over time.
To provide MIGA’s non-honoring of Sovereign Financial Obligations instrument to cover interested
MDB’s exposures of sovereign loans with the goal of enhancing the overall capital efficiency of the
MDB system by reinsuring these exposures in the private reinsurance market. MIGA is also working
to support private re-financing of loans of MDBs and other DFIs using an innovative application of its
political risk insurance in combination with a contingent liquidity support facility.

7

To grow IFC’s blended finance portfolio, leveraging instruments like subordinated loans, guarantees,
local currency, and performance-based incentives, to rebalance the risk-return profile and attract
private investors to high-impact projects. In addition, IFC is planning to grow its equity book,including through mobilization efforts, to provide patient, long-term capital to support companies’
growth and promote higher environmental, social, and corporate governance (ESG) standards. IFC isalso pushing the envelope on other innovative modes of financing, such as offering Synthetic Risk
Transfers globally at scale in emerging and developing countries.

21.
A new World Bank Group Guarantee Platform is being developed to significantly increase theWorld Bank Group’s mobilization of private capital to support clients. Implementing a specificrecommendation of the PSIL, the World Bank Group has established a new platform and will launch it in July2024 to bring all guarantee products into a unified storefront to streamline and clarify offerings to our clients,
provide increased and unified advocacy for guarantees, and to grow our guarantee business by leveraging theunique value propositions of each of our institutions. The new platform will focus on innovation, especially insupport of the energy transition through the potential application of guarantees to the carbon credit market andoff-grid and mini-grid solutions. The new Guarantee Platform will seek to triple the Group’s annual guarantee
issuance by 2030, thereby significantly increasing private capital mobilization and complementing our growing
lending activities to deliver development gains to our clients by leveraging markets and private sector financeand solutions. A first engagement with the World Bank Group EDs has been held, and further engagements
are expected prior to the launch of the Platform in July 2024.
22.
Progress with the Global Emerging Markets Risk Database (GEMs) is bringing greatertransparency to data on investment risk to overcome a key constraint to private investment indeveloping economies. The GEMs Consortium – currently comprising 25 MDBs and DFIs, with IFC andIBRD as the largest contributors of private sector and sovereign data, respectively – has been publicly
disseminating statistics through the GEMs website since 2020. In Q1 2024, for the very first time, the GEMs
Consortium will publish recovery statistics for private and sub-sovereign lending from 1994 to 2022.4 Together
with the existing publication of default frequencies, started in 2020 and enriched last November with a fuller
set of sectors, this will greatly advance the commitment to make key GEMs statistics publicly available under
the G20 Capital Adequacy Framework, in line with the 1–2-year horizon recommended by the expert panel inJuly 2022. This effort includes the publication of historical IBRD loan loss data since 1985 which willcontribute to private capital mobilization by enhancing the ability for risk assessments by private sector market
players and investors.
Modernizing our Approach to Delivery to Clients23.
Key steps have been taken to strengthen our One World Bank Group approach to deliver to all
our clients. The GCPs and the new Guarantees Platform, discussed earlier, are key vehicles to deliver client
impact by operationalizing the One World Bank Group approach. Additionally, we are putting in place joint
World Bank Group country representation in an initial 20 country offices. Joint country representatives will bein place by July 2024. Country clients will then be able to interface with one World Bank Group country
representative to discuss public and private sector solutions to country development challenges in an integrated
way. In addition, we are updating the World Bank Group guidance on CPFs to ensure that country engagement
is selective and driven by knowledge; and to enable better coordination of public and private development
solutions and finance, including how to sequence interventions to facilitate private capital. These changes will
be combined with stronger incentive framework. The new Scorecard emphasizes shared goals that incentivize
collaboration across the World Bank Group. Additional mechanisms to recognize and reward staff efforts towork across institutional boundaries will also be put in place, with a career development platform to belaunched in FY25 that will provide more visibility into career opportunities and facilitate cross-institutional
mobility.
4

The database can be accessed at https://www.gemsriskdatabase.org/.

8

24.
A series of measures to enhance operational effectiveness and efficiency measures are also wellunderway to expedite delivery to country clients. We are streamlining processes, facilitating faster projectprocessing, and reducing bureaucracy. This includes reducing the length of program documentation andreducing reviews and processing steps to speed up project preparation. Initial discussions have been held with
the World Bank Group EDs on options for streamlining approval of financing in certain areas throughdelegation of authority, with clear guardrails based on rigorous analysis and consideration, and engaging more
on issues of strategic relevance. All of these efforts have so far contributed to a reduction in the expected
preparation time of our projects to 17 months in FY24, against previously planned preparation time for FY24
of 19 months. We are working towards reducing the overall preparation time to under 12 months by FY25,
which will be a cut by one-third. Improving operational efficiency and effectiveness is supported by a numberof concrete operational measures:

IBRD/IDA have strengthened and streamlined the implementation of the Environmental and Social
Framework (ESF) with a set of ten measures being rolled out since October 2023. This promotes
greater use of borrower frameworks, simplifies and eliminates duplication in our internal processes,
offers more hands-on support to country clients, and adopts a risk-calibrated approach toenvironmental and social review and clearance processes. The objective is to make internal processes
more efficient and apply greater resources to supporting client countries on strengthening theirenvironmental and social capacity and systems. We have started our overview assessments/gap
analysis of borrowers’ existing frameworks for addressing environmental and social risks and impacts
in over 30 countries to date, with the aim of developing a comprehensive capacity-building program
over the medium-term. We initiated expanded hands-on implementation support in over 70 projects,
aiming to strengthen capacity and systems. Close to 300 projects are already benefitting fromstreamlined review and clearance process of ESF documents. Initial client feedback on efforts has been
positive. IFC is using MALENA, an AI-powered tool, leveraging over 15 years of IFC ESG data to
distill complex, unstructured ESG information into actionable insights for sustainable investments.
The tool allows IFC to provide emerging market investors with ESG analyses to conduct rapid due
diligence of potential investments and effectively manage risks of the existing portfolio.
Regional teams are working to scale up IBRD and IDA operations for faster and greater impact,
including through increased use of programmatic approaches like the Multiphase Programmatic
Approach (MPA) and by replicating successes through additional financing to successful operationsin the current portfolio. The MPA pipeline is growing, with 46 MPA programs expected in FY24,
alongside IFC platforms. Simplified processing and documentation lead to faster preparation for
subsequent phases of MPAs, and management authorization to commit subsequent financing withlow/moderate environment and social risk increases speed and efficiency. In addition, increased
predictability of public investment and reforms has the potential to crowd in more financing fromgovernment budgets, development partners and the private sector. The planned launch of the GCPs
will further support scaled-up programming for increased impact, capitalizing on complementarity andeffectiveness gains through a joint approach to programming through horizontal MPAs, IFC platforms,
and de-risking instruments from MIGA.
Implementation support is an important determinant for the quality and timeliness of delivery. We
are expanding our hands-on implementation support to provide direct support to borrowing countries,
particularly in FCV contexts where limited implementation and administration capacity can impede
effective implementation. This had already played critical roles in our response to COVID-19,
alongside Bank-Facilitated Procurement. Through operations and knowledge, we are working toprovide additional capacity building and implementation support to clients, including through the
Academy offering under the Knowledge Compact, which will speed up time to deliver impact, forexample, in FCV contexts where such capacity is particularly low.

25.
The next phase of effectiveness and efficiency measures will further simplify internal processes
and strengthen client implementation capacity to achieve results faster. Efforts are underway to enhance9client capacity and institutions, improving the rigor of diagnostics that inform project preparation andimplementation; strengthening incentives for project implementation; enhancing knowledge, learning, and datacapacity for clients, stakeholders, and decision makers; and systematically providing demand-driven support
to clients. Management is identifying further actions to enhance the efficiency of our project cycle including
identifying redundant processing steps, streamlining processing of recurring types of waivers/exceptions,
reducing the number of decision points, and ensuring more focused reviews commensurate with the risks.
Proposals are also under discussion to update the Citizen Engagement and Social Accountability framework
to eliminate duplication and maximize synergies with the ESF. For IFC and MIGA, these continued efforts
will be important drivers in enabling more effective and quicker delivery to clients. IFC will continue to build
on recent successful efforts that have resulted in improved program delivery such as the updated Accountability
and Decision-Making framework, simplified procedures for existing clients, an improved approach to capital
market transactions, as well as IFC platforms. We are also developing options to expand project preparation
financing, including from grant sources. This will help strengthen the pipeline of bankable projects for ourclients.
26.
Delivering on the ambitions of the evolution process depends on having a high-performing,
motivated, and engaged workforce with an appropriately diverse skill set. A new Career Development
Plan has been launched for all World Bank Group staff to strengthen support for professional development.
This initiative assists staff in reflecting on their career aspirations and areas of development, collaboratively
defining concrete actions with their managers to foster career growth, in line with new corporate priorities
being set in the World Bank Group playbook. We are also conducting a review of existing performance, talent,and career management approaches, with the goal of having a skills-based integrated talent management
ecosystem. Staff incentives will align career growth with the priorities of the new playbook, such as toencourage and support staff to deliver to clients in FCV contexts.
27.
To support the implementation of the evolution process, the business planning and budgeting
process has been revamped across the World Bank Group. We have simplified the business planning andbudgeting processes and timelines across IBRD/IDA, IFC, and MIGA from 9 months to 3 months. This will
facilitate early strategic engagement between World Bank Group Management and the Board on budget
proposals and early decision-making so that teams can plan for effective implementation at the start of eachfiscal year throughout the Group. The revamped annual business planning exercise includes units across theWorld Bank Group annually identifying productivity savings of 5 percent and senior management reallocatingthese savings to the new priorities and commitments in that year. But growing our programs and our impact
will also require additional resources and will entail adjustments of administrative budgets of each institution.
Priorities for the FY25 budget include the new Knowledge Compact, implementing operational effectivenessand efficiency measures and financial model enhancements, advancing private capital and domestic resource
mobilization, and roll-out of GCPs. Importantly, the new business planning processes will emphasize
flexibility to enhance resilience to external shocks.
28.
We are strengthening our collaboration with development partners and the private sector todeliver on country, regional, and global priorities at scale. The World Bank Group has committed to beinga better partner to help address development challenges and priorities, leverage public and private resources,
measure results, and work better across MDBs and with other partners. New Memoranda of Understanding(MoUs) have been signed (e.g., with the Inter-American Development Bank and the Islamic Development
Bank) to work in partnership to scale up impact and reach in some targeted areas of common interest. Several
other MoUs with regional institutions are also under development, with a focus on achieving and measuring
specific results. Across the MDB system, we have committed to promote systemic MDB cooperation throughincreased alignment of policies and procedures, mutual reliance agreements for jointly financed programs, andthe deepening of co-financing. Work is also underway to simplify the principles and modalities for entering
operational partnerships with United Nations agencies as well as other partners. In this light, we are also
seeking ways to boost partnerships with civil society and non-governmental organizations, which often have10complementary development mandates and can bring tremendous value through local knowledge, technicalexpertise, and social capital.
IV. Enhancing the World Bank Group's Financing Model29.
We are advancing our plans to further increase IBRD’s financing capacity, beyond the US$50
billion increase over the next ten years from the measures already implemented, including raisingresources to provide financial incentives as discussed in Marrakech. World Bank Group institutions
significantly leverage the market to mobilize resources for the benefits of our clients. Substantial progress has
been made on increasing IBRD’s financing capacity through balance sheet optimization measures, while
continuing to protect IBRD’s triple-A rating. Measures to stretch existing capital more efficiently, including
lowering the minimum equity-to-loan (E/L) ratio and increased limits on the bilateral shareholder guarantee
program, have enhanced IBRD’s long-term sustainable lending capacity by an estimated US$50 billion over
the ten-year period starting FY24. Beyond this, IBRD financing initiatives agreed at the Spring and Annual
Meetings (such as hybrid capital from shareholders/development partners, and the portfolio guarantee
platform) have continued to progress and are ready for implementation. A number of shareholders haveannounced their intent to participate. Work on hybrid capital from markets continues to progress, including
engagement with rating agencies, with the expected implementation by end of 2024. Management is also
clarifying procedures regarding existing callable capital and exploring options to enhance its value to enableadditional capacity.
30.
We have strengthened the Bank’s offering to the most vulnerable IBRD and IDA borrowers
beyond what was announced at Marrakech. The CRDCs have been expanded to cover (a) interest payments
as eligible for deferral, and (b) existing loans of eligible borrowers. In addition, the CRDC fee of 5 basis points
per annum, if needed, is proposed to be covered from the Livable Planet Fund once it is established.
31.
To enhance the impact of these initiatives, significant progress has been made towards launchinga framework for financial incentives to support IBRD projects that address global challenges and havepositive cross-border externalities. The package of financial incentives for IBRD country clients aims toprovide targeted volume, tenor, and price incentives in a transparent manner to stimulate demand to invest in
projects that address global challenges and have positive cross-border externalities, while balancing the needto retain the Bank’s country-led model to ensure client ownership and accountability and the flexibility of
IBRD lending to meet clients’ evolving needs. The framework is built upon the principles and approach thatwill be used to incentivize projects addressing global challenges with cross-border externalities. The
framework’s “learning-by-doing approach” would be underpinned by rigorous project-by-project assessment,
and embed systematic opportunities to review the implementation experience, adjust and enhance theapproach, and share learning outcomes across the MDB community.
32.
The framework also aims to create incentives for contributing partners to provide additional
voluntary contributions that IBRD can leverage by creating a compelling value proposition: aligning theuse of additional resources with strategic priorities agreed through the evolution process discussions at the2023 Annual Meetings and benefitting from IBRD’s powerful leverage model to multiply the lending capacity.
The framework’s ‘Global Solutions Accelerator Platform’ will allow shareholders to direct their contributions
and additional lending capacity generated by such contributions; the platform would provide the financing forvolume incentives for projects addressing global challenges and mitigating negative externalities. The
framework will also underpin the use of donor resources under the Livable Planet Fund. The viability andsuccess of the framework for financial incentives will depend on support from contributing shareholders topurchase hybrid capital instruments, participate in portfolio guarantee platforms, and contribute to the Livable
Planet Fund.
33.
Developing more and better partnerships is also a key aspect of mobilizing finance to scale client
impact. IDA itself embodies an extraordinary global partnership, bringing together its current 59 donor
11governments as well as representatives of 75 recipient countries in a multilateral process that seeks consensus
on priorities and policies for the use of funds. Trust Funds (TF) and Financial Intermediary Funds (FIF) workin close complement to bring in additional resources. As part of the IDA20 Mid-Term Review in Zanzibar in
December 2023, a paper, Partnerships: IDA Works in Cooperation with a Broad and Diverse Range ofPartners, was prepared that takes stock of IDA20 partnerships and sets the stage for a stepped-up partnership
focus in IDA21.
34.
The evolution process identified direct co-financing in the public sector as an important
instrument to support an evolving mission to confront global challenges and priorities. By its very nature,
co-financing is about partnerships and MDBs, bilateral agencies, and other development partners working
together. We implemented several measures to increase direct co-financing in the public sector given its
potential to mobilize and align resources strategically and efficiently towards policy reforms, maximize
development outcomes, raise catalytic concessional financing to leverage private capital, and reducetransaction costs for our partner countries. We reformed our cost sharing approach to further incentivize cofinancing, grant and concessional resources, and alignment with strategic priorities.
35.
Further, we are developing a Collaborative Co-financing Platform, together with other MDBs
to improve coordination across the multilateral system and to identify co-financing opportunities tobetter serve our clients. The Platform, to be launched at the 2024 Spring Meetings, will include a digitalcomponent (the Co-financing Portal) and a Co-financing Forum. The Co-financing Portal will comprise a
database of projects seeking co-financing provided by each of the participating institutions. The Portal will becomplemented by a forum for participants to discuss co-financing opportunities identified through the Portal,and common issues related to co-financing.
36.
IFC and MIGA are continuing to leverage their strong capital positions. To deliver on evolution
ambition, IFC and MIGA will focus on and scale activity in priority areas, emphasizing innovative products
and solutions that create markets and drive foreign investment for development, facilitate private sector growthat scale, and enable impact, including in FCV and IDA markets. Both institutions remain focused on expanding
the impact and scope of their delivery across clients. For IFC, for example, this includes effectively leveraging
blended finance and new innovative structures, such as Synthetic Risk Transfer transaction, which serve as
impact multipliers while also helping IFC leverage its capital more efficiently. MIGA is using its efficient
capital model, enabled by its robust reinsurance capacity, to deliver record guarantee issuance and mobilizationof private capital, including through doubling down on innovation (for example, through liquidity support
guarantees for renewable energy and infrastructure). The continued ability of both IFC and MIGA to leverage
their respective capital bases will be facilitated by (i) leveraging the IDA Private Sector Window to enable
sustainable private investment in these challenging markets, further underscoring the need for a strong IDA21
replenishment and (ii) by evaluating options for multi-donor trust fund structures to help scale and streamline
fundraising efforts to support private sector projects that address global public goods and local market
distortions.
37.
Strengthening IDA’s financing capacity will be imperative to deliver on our increased ambitions
to help set low-income countries back on the pathway to eradicate poverty on a livable planet. IDA’s
financial model already allows it to leverage every dollar of partner contributions into almost four dollars ofcommitment authority. In the same vein of efforts earlier undertaken for IBRD, as part of continuing
improvements and enhancements of the use of IDA’s balance sheet and financing capacity, Management has
proposed enhancements to IDA’s Capital Adequacy Framework (CAF) that are cumulatively estimated torelease US$16 billion of capital and would allow to increase IDA’s financing capacity by about US$20 billion
over IDA20-24. These enhancements relate to the capital requirements for the Private Sector Window facilities
as well as other refinements.
38.
At the IDA20 Mid-Term Review Meeting in December 2023, Management and IDA Participants
agreed on a package of measures to support additional capacity through the end of IDA20. This package
12includes using resources from the CRW+, cancellation and recommitments, and additional capacity fromreleasing capital from additional long-dated fixed rate bonds – scaling up a balance sheet optimization measurethat was already implemented in IDA20. The package also includes part of the additional capacity generated
from the enhancements identified in IDA’s CAF. These measures enable IDA to maintain US$30 billion per
FY financing through the end of IDA20 in 2025. The remaining capital release from the enhancements
identified in IDA’s CAF review will be used to boost IDA’s capacity in the medium term.
39.
Increased support is needed to help set IDA countries back on the pathway to eradicate poverty
on a livable planet. Decisive action is critical, and we must position IDA21 to help IDA countries face thecurrent crises in the short term, while continuing to focus on long-term development goals and increasing
countries’ resilience to crises. We will need an ambitious and robust IDA21 commensurate with the challenges
at hand. IDA will need to continue to provide strong net positive flows to IDA countries, including ensuring
adequate support to address the needs for prevention and transition out of FCV and of IDA conflict-affected
countries. The implementation of our playbook will leverage these resources to achieve impact at scale,measured and managed through the new World Bank Group Scorecard.
40.
The proposed IDA21 strategic directions are informed by these challenges and opportunities
faced by IDA countries, as well as alignment with the World Bank Group evolution efforts to deliver
impact at greater scale and with speed. Through multiple replenishment engagements, various aspects of
IDA’s operational, policy and financing frameworks are already positioned to deliver on the evolution
endeavor. Demographic shifts and the advent of new technologies also present opportunities to improve
prospects for millions of people in IDA countries. Progress already achieved on key thematic issues in IDA20
and past IDA cycles, provide a steppingstone for greater impact. With the proposed overarching theme of“Acting with Urgency and Ambition to End Poverty on a Livable Planet”, IDA21 will heighten focus on
outcomes, in line with the World Bank Group Scorecard and benefitting from improved transparency andaccountability that the Scorecard as a strategic management and communication tool provides. IDA21 willcomplement its enhanced outcome orientation with a SimplifIDA initiative, which, by streamlining IDA
architecture and processes, will support speed and impact in the delivery of development solutions in a mannerthat does not increase environmental and social risks, or reduce quality outcomes.
41.
IDA21’s policy framework will be informed by exchanges with the civil society. This will be done
not only through the longstanding IDA Forum events held at Spring and Annual Meetings, which have been
helpful in understanding the priorities of the civil society; but also through the new regional IDA Forums,
which will build on the successful model of engaging with Civil Society Organizations and private sector
representatives on the Evolution at the regional and local levels.
V. Next Steps and Questions
42.
We are on a path to deliver an ambitious World Bank Group transformation that will achieve
impact at scale for all our clients. The measures being delivered will improve the client experience ofworking with the World Bank Group on addressing their most pressing development challenges. Over theremainder of 2024, in consultation with the Board, we will finalize the new Scorecard indicators to drive
accountability and improve the measurement of results with a focus on outcomes and continue implementing
operational effectiveness and efficiency measures for a better and faster World Bank Group. We will work on
fully implementing the operational measures under the new playbook, rooted in our enhanced country-based
development model. As we move into implementation of the GCPs, we will increase our delivery of replicableand scalable programmatic approaches to critical global challenges, including innovative means and steppedup approaches to mobilize private capital to fill the financing gap to address global challenges. Further details
are set out in Annex 1. We remain committed to supporting FCV countries with resources, knowledge, handson implementation support and capacity building. We will maintain an adaptive and flexible approach to ensure
we continuously incorporate lessons on how to best achieve lasting results in FCV countries. We will deepen
our partnerships.
1343.
More efforts are needed to fully respond to the pressing development needs of our clients, andthere has never been a more important moment for stepped-up global action. The transformation to
becoming a better bank will need to be accompanied by an increase in the World Bank Group’s financial
capacity. The leveraging model of the World Bank Group offers high value for money to the international
community. Moving from Vision to Impact in the evolution process further enhances our value proposition.
The financial measures already adopted and those currently under review are important steps to increase WorldBank capacity. But more could be done for clients by mobilizing new, additional resources, especially by
maximizing the IDA21 replenishment to address the needs of the poorest countries. With Governors’ support,
Management and World Bank Group EDs could work together to deliver a robust and ambitious IDA
replenishment. A shareholder review is scheduled for 2025. Management will work with shareholders to
explore the possibility of establishing a review process to assess the alignment of capital resources with
ambition. These operational and financial measures will help us to deliver on the new vision and mission of
the World Bank Group.
44.

We welcome feedback from the Governors on the following:i.
What are Governors’ views on early progress in aligning the World Bank Group playbook with
the new vision of a world free of poverty on a livable planet?
ii.
What guidance do Governors have on steps to strengthen our financing capacity to become abigger World Bank Group, including securing a robust and ambitious IDA21 replenishment?

14

References
United Nations (2023). Progress Towards the Sustainable Development Goals: Towards a Rescue Plan forPeople and Planet. Report of the Secretary-General. General Assembly Economic and Social Council. New
York: United Nations.
World Bank (2022). Where Is the Value in the Chain? Pathways out of Plastic Pollution. Washington, DC:
World Bank.
World Bank (2023a). Ending Poverty on a Livable Planet: Report to Governors on World Bank Evolution.
Report for the Development Committee, Annual Meetings 2023. Marrakech: World Bank.
World Bank (2023b). Mid-Term Review of the World Bank Group Strategy for Fragility, Conflict, and Violence(2020-25). Washington, DC: World Bank.
World Bank (2024). Global Economic Prospects: Subdued Growth, Multiple Challenges. January 2024:
Washington, DC: World Bank.

15

Annex 1: Deliverables, as of Spring Meetings 2024
Launched by:
Action Area

SpringAnnualMeetings
Meetings
2024
2024
NEW VISION, MISSION, AND WORLD BANK GROUP SCORECARD
Establish New Vision and Mission
Define Eight Global Challenges
Define preliminary World Bank Group Scorecard
Endorsement of New Scorecard
Issue of FY24 Scorecard (with indicators in two phases)
A NEW WORLD BANK GROUP PLAYBOOKDOUBLING DOWN ON IMPACT
Knowledge Compact
Define and establish Knowledge Compact (products,
learning, partnerships, and systems)
Country Engagement
Strategic Alignment and Streamlining of Country
Engagement Model
Enabling and Mobilizing Private Capital
Engage the private sector more, including through thePrivate Sector Investment Lab
Upgrade Country Private Sector Diagnostics as core
analytical productIncrease public access to the Global Emerging Markets
default and recovery rates (GEMs)
Finalize design of the IFC Warehouse-Enabled
Securitization Program (WESP)
Launch of initial test securitization under WESP
Scale up green bond structure backed by a contingent
liquidity facility and MIGA’s political risk insurance
Develop proposals for FX risk management and increasing
the affordability of hedging for the private sector
Mobilizing Domestic Public Resources
Establish Public Finance Reviews as a core diagnostic
Issue new guidance on supporting clients to strengthen
domestic resource mobilization for countries with low tax
collection rates
Strengthen partnerships on domestic resource mobilization
with key institutions
Global Challenge Programs
Launch the development of six GCPs
Develop Six GCP Approach papers
Crisis Preparedness and Response Toolkit
Establish a Rapid Response Option to allow countries to use
undisbursed funds for emergency response; increase
country access to Cat-DDOs; establish IPF-DDO; increase
access to parametric products to transfer disaster risk to theprivate sector
16

Post-Annual
Meetings
2024

Launched by:
Action Area

SpringMeetings
2024

Launch CRDCs for the most vulnerable countries – newloans
Extend CRDCs to existing loans
Design a parametric insurance backstop for MIGA-enabledpublic sector projects
Assist private sector clients in crises preparation andresponse
MODERNIZING OUR APPROACH TO DELIVERY
One World Bank Group
Establish World Bank Group Guarantee Platform
Leverage staff incentives and flexibilities to promote WorldBank Group collaboration and cross-institutional mobility
Launch a new country representation cohort for One WorldBank Group (by completing recruitment of the cohort for 20
countries)
Establish One World Bank Group Approach across Financeand Risk functions
ITS Strategy Refresh Initiative in Support of the Evolution
Process
Update on Real Estate Strategy and One World Bank Group
Global Footprint Management
People and Culture
Labor model review (Management evaluation of contractarchitecture and types)
Review of talent management and career development
framework (Management scoping improvements to enhanceWorld Bank Group employee value proposition)
BudgetBudget changes engagements
Operational Efficiency and EffectivenessStreamline Additional Financing (including replenishmentof financing repurposed for crisis response) and Improve
Management of Undisbursed Balances within a Country
Portfolio
Review of MPA to facilitate replicability andscalability
Update on Operational Efficiency and Effectivenessinitiative and Next Steps
Launch and Implement 10 actions to streamline andstrengthen ESF implementation
Scale up hands-on implementation support to provide direct
support to IBRD/IDA borrowing countries
Agree on IBRD/IDA bunching strategy: delivering no morethan 17 operations per week, with minimal exceptions
Mandate maximum 25-page project documents
17

AnnualMeetings
2024

Post-Annual
Meetings
2024

Launched by:
Action Area

SpringMeetings
2024

Partnerships
Public Sector Direct Co-Financing Cost Sharing
Framework
Develop a Co-financing Platform for public sector
operations together with other MDBs
Establish partnership MoUs with development
partners
WORLD BANK GROUP FINANCING MODEL
IDA
Fundraise for CRW+
Explore measures to strengthen medium-term financing
capacity
IDA Capital Adequacy Framework Review and Balance
Sheet Optimization
IBRD
Pilot innovative results-based financing terms
Lower minimum E/L ratio to 19% (from 20%)
Increase bilateral guarantee limit by US$5b (from US$10b
to US$15b)
Pilot hybrid capital from capital markets (pilot up to
US$1b)
Finalize the ongoing Board of Governors vote on theremoval of the statutory lending limit from IBRD Articles
Increase bilateral guarantee limit by US$5b (from US$15b
to US$20b)
Introduce Asian Infrastructure Investment Bank guarantee(US$1b)Establish portfolio guarantee platform
Develop shareholder hybrid capital option
Clarify call and payment procedures on existing callable
capital
Explore enhanced callable capital
Consider augmenting donor interest in IBRD balance sheet
optimization s with thematic preferencing (as part of an
overall Framework for Financial Incentives) (see also item
below)IFC
Continue to develop and introduce internal efficiency
measures to enable delivery to clients through improvements
to policies and procedures
MIGA
Introduce Non-Honoring of Sovereign Financial
Obligations cover to MDBs for their exposure to sovereign
loans
18

AnnualMeetings
2024

Post-Annual
Meetings
2024

Launched by:
Action Area

SpringMeetings
2024

CONCESSIONAL FINANCE
Identify sources of concessionality – augmented Global
Public Good Fund Trust Fund (or Livable Planet Fund),Umbrellas, Financial Intermediary Funds, co-financing
Establish principles of concessionality for World Bank
Framework for financial incentives for IBRD-eligible
countries (including existing resources in TF-FIF) (see also
item above)
Explore multi-donor trust funds for IFC and MIGA toprovide concessional funding for private sector operations

19

AnnualMeetings
2024

Post-Annual
Meetings
2024