THE World Bank’s Board of Executive Directors has endorsed a move that will
make the Bank’s original financing instrument more effective and clear for
governments, staff, and civil society organizations. The move is an effort
towards to modernization the Bank and make it more focused on results and
solutions; less bureaucratic and more accountable to our clients, shareholders
and the beneficiaries of Bank investments.
The Bank has consolidated the
policies and procedures governing Investment Financing, the main lending vehicle
available to clients to support specific investments ranging from infrastructure
to social safety nets to judicial reform. Investment Finance was the Bank’s
original financing instrument for making loans for post-World War II
reconstruction in Europe in the late 1940s. Over time, the lending policy has
evolved, resulting in a maze of 30-some policy and procedure statements that
have now been consolidated into a single coherent policy. The critical policies
of procurement and environmental and social safeguards are on a separate track
and are now undergoing public consultations.
The new policy retains the
content of the previous operational policy and procedure statements, restating
them in a way that is clear to clients, staff, and civil society.
Clear
policies are the foundation of accountability and consolidating our Investment
Lending Policy is an important step to make this instrument more effective for
the Bank’s range of clients. This effort will help our clients and staff focuses
more on problem solving, implementation, and delivering results – and less on
bureaucracy.”
While largely a consolidation effort, the new policy introduces
a few changes to better respond to client needs. One of the key changes is
extending the rapid response option used when countries face natural disasters
or conflict to small states and fragile countries, as recommended in the 2011
World Development Report on fragility and conflict. Another change relates to
how economic analysis is done that will maintain the mandatory nature and rigor
of the analysis while taking into account the country and sectoral
considerations.
The
new policy will go into effect in 2013.
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