The average country targeted by PSM projects also performs worse on key human development indicators than the average country targeted by non-PSM projects. A life expectancy at birth of 62.2 years in PSMtarget countries compares to 63.8 years in non-PSM countries and an under-5-year-old mortality rate of 88.7 per 1,000 compares to 77.8 per 1,000 in the average non-PSM country (see annex table A.4). While gross primary school enrollment rates are slightly higher in the average PSM country, secondary enrollment rates are slightly lower.

As previously noted, PSM projects are particularly targeted toward Africa and LAC.<sup>56</sup> About 35.5 percent of PSM projects are targeted toward the Africa region. By contrast, only 21.2 percent of non-PSM projects are targeted toward Africa. Similarly, about 25 percent of PSM projects are targeted toward the LAC region, compared with only 18.5 percent of non-PSM projects. In turn, PSM projects are underrepresented in the Middle East and North Africa, East Asia and Pacific, and South Asia regions. The percentage of PSM projects targeted to these regions is only about half as high as the percentage of nonPSM projects.

# **6.3 Comparing Reform Content Factors**

PSM projects, by definition, contain a larger share of PSM components than do non-PSM projects (see section 3.2). As shown in annex table A.5, the PSM share in broadly defined PSM projects is 28 percent on average, compared to 7.1 percent in non-PSM projects.<sup>57</sup> The dominant PSM component in PSM projects is CSR, representing 9.1 percent of total components on average. PFM and decentralization—next on the list of PSM components—are less important, with averages of 4.2 and 4 percent, respectively. Put differently, 22.1 percent of PSM projects have CSR components that represent 25 percent or more of the total project.<sup>58</sup> By contrast, only about 9.8 percent of these PSM projects have a share of PFM components greater than 25 percent.

# **6.4 Comparing Process and Risk Factors**

During the first half of project implementation, TTLs flag most process or risk indicators with similar frequency across PSM and non-PSM projects—with three interesting exceptions. Project management is flagged in 25 percent of PSM projects, compared to 19 percent of non-PSM. Monitoring and evaluation, too, are flagged more often in PSM projects (13 percent) than in non-PSM (10 percent). Finally, the safeguards flag is raised less often for PSM projects (4 percent) than non-PSM (6 percent).<sup>59</sup> There is no

> 56 For detailed descriptive statistics on regional targeting, please refer to Blum (2014).

> 57 The PSM share in (narrowly defined) “upstream” PSM projects is on average 85 percent. All average component share differences between PSM and non-PSM projects are statistically significant at the 1 percent significance level.

> 58 See Blum (2014) for detailed statistics.

> 59 All differences reported here are statistically significant at the 1 percent significance level. See Blum (2014) for detailed descriptive statistics. That the safeguards flag is raised less frequently in PSM projects has an intuitive explanation. Compared to infrastructure projects or human or

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