The Effectiveness of DFID’s Engagement with the World Bank

The World Bank is important for delivering UK development assistance. DFID contributed £1.6 billion to the Bank in the 2010-11 financial year, which represented a fifth of all UK ODA.

This review considered the effectiveness of DFID’s engagement with the World Bank and its influence on the Bank’s activities, in order to maximise impact for intended beneficiaries and value for money for the UK taxpayer.

DFID provides effective oversight of the World Bank, as a shareholder and as a donor. DFID and the UK delegation to the World Bank engage effectively with the World Bank’s management to influence priorities, monitor delivery, improve effectiveness and learn from their experience. We have two main concerns. First, DFID has no central oversight of its portfolio of World Bank trust funds. Second, further progress needs to be made in supporting the Bank to improve the performance and value for money of IDA projects.

As a result of our findings this review has been marked Green- Amber.

Recommendations

Recommendation 1: DFID should improve its oversight of the World Bank trust funds it is financing and develop a corporate strategy for allocating resources to trust funds in line with UK Government aid objectives, within 12 months.

Recommendation 2: DFID should work with the World Bank during the remainder of IDA16 and through IDA17 to improve service delivery cost-effectively in fragile and conflict-affected states, including through further decentralisation of staff.

Recommendation 3: DFID should review the principal factors influencing the success of IDA projects. It should then assess how to extend the measures and increase the stretch in targets in the IDA Results Measurement System. DFID should use this work to improve performance and value for money through the IDA17 replenishment negotiations.