Designed for the Future?
Assessing Principles of Sustainable Development and Governance in the World Bank's Project Plans
As the challenges facing the world—from economic uncertainty and political unrest, to the increasingly severe impacts of a changing climate—have grown, the World Bank is seeking to reinvent itself and help its developing member countries address these challenges.
To understand the World Bank’s ongoing reform efforts, the World Resources Institute (WRI) has examined the extent to which the World Bank is integrating elements of sustainable development and effective governance considerations into the design of a sample set of projects.
This report was co-written with Joonkyung Seong, a former intern with WRI.
Seventy-five percent of the projects did not incorporate assessments relating to climate change risks into their design.
Eighty-eight percent of the projects did not assess likely greenhouse gas (GHG) emissions from the project activities, relative to a baseline.
A few of the assessed projects illustrated how World Bank investments can help countries to adapt to the impacts of climate change and build resilience. However, these projects were the exception rather than the rule.
Sixty-eight percent of the projects evaluated explicitly identified and targeted vulnerable populations.
Only about half of the projects were able to demonstrate that vulnerable populations would see specific benefits in terms of access to essential services and improved economic opportunities from project activities.
Less than half the projects demonstrated that they were strategically embedded in long-term sustainable development plans.
Fifty-eight percent considered the enabling policies and regulations relevant to the proposed intervention at the time of project appraisal.
Environmental and social risks
- Environmental and social risks were largely considered during project design with 82 percent of projects conducting environmental and social assessments as part of their design.
The World Bank has sought to reinvent itself in the face of a growing number of global development challenges, including economic uncertainty, political unrest, and the increasingly severe impacts of a changing climate.
This report examines the extent to which the World Bank is integrating elements of sustainable development and effective client-country governance considerations into the design of a sample set of projects. The authors offer ten recommendations for how the World Bank can improve its project plans to meet these global challenges.
The World Bank was founded more than half a century ago with the goal of reducing, and eventually eliminating, poverty worldwide. As the challenges facing the world—from economic uncertainty and political unrest, to the increasingly severe impacts of a changing climate—have grown, the World Bank has sought to reinvent itself.
As part of its reinvention, the World Bank has announced two new goals. The first is to reduce global extreme poverty 1 to 3 percent of the world’s population by 2030. The second is to promote shared prosperity, which requires fostering income growth for the poorest 40 percent of the population in every country. Importantly, shared prosperity also entails securing development gains for future generations. In pursuing these goals, the World Bank has a unique opportunity to distinguish itself in the development finance landscape by integrating sustainable development and effective client-country governance into the core of its operations.
To understand the World Bank’s ongoing reform efforts, the World Resources Institute (WRI) examined the extent to which the World Bank is integrating elements of sustainable development and effective governance considerations into the design of a sample set of projects. This report builds on similar studies conducted by WRI in the past.2 The projects that WRI assessed were selected from a list of sectorally relevant, sampled projects approved by the World Bank between January 2012 and June 2013.
International Financial InstitutionsVisit Project
Strengthening sustainability policies and governance in strategically-important institutions—including the multilateral development banks—to promote financing for sustainable activities and discourage financing for unsustainable ones.Part of Finance
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Our International Climate Finance work strengthens key policies and governance elements in important international institutions to promote Paris Agreement alignment in finance and uphold the role of climate finance in international negotiations.Part of Finance