Improving the Lives of the Poor by Investment Cities: An Update on the Performance of the World Bank's Urban Portfolio (Operations Evaluation Studies)

96 Pages·2004·0.79 MB·English

by  Roy Gilbert

THE WORLD BANK W O R L D B A N K O P E R A T I O N S E V A L U A T I O N D E P A R T M E N T
Improving the Lives
of the Poor Through
Investment in Cities
An Update on the Performance of
the World Bank’s Urban Portfolio
THE WORLD BANK ™xHSKIMBy355404zv":&:;:%:+
ISBN 0-8213-5540-6
Improving the Lives of the Poor Through Investment in Cities THE WORLD BANK
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http://www.worldbank.org/oed
W O R L D B A N K O P E R A T I O N S E V A L U A T I O N D E P A R T M E N T
Improving the
Lives of the
Poor Through
Investment in Cities
An Update on the Performance
of the World Bank’s Urban
Portfolio
Roy Gilbert
2004
The World Bank
h t t p : / / w w w . w o r l d b a n k . o r g / o e d Washington, D.C.
© 2004 The International Bank for Reconstruction and Development / The World Bank
1818 H Street, NW
Washington, DC 20433
Telephone [phone]
Internet www.worldbank.org
E-mail
Contents
v Preface
vii Acknowledgments
ix Foreword, Prólogo, Avant-Propos
xiii Executive Summary, Résumen, Résumé Analytique
xxv Abbreviations and Acronyms
xxvii About the OED Rating System
1 1. Context and Methods
2 Developing-Country Cities and the Poor
3 Evaluation Method
5 2. Evolution of the Bank’s Urban Portfolio
5 The First Decade: 1972–82—Initial Focus on Poverty
6 The Second Decade: 1983–92—Rapid Expansion after the Debt Crisis
9 The Third Decade: 1993–2000—Managing Cities and Market Reforms
11 Into the Fourth Decade: 2001 and Beyond—Putting Cities in a Global
Context
15 3. Better Projects in Cities, Better Lives for the Poor
15 Bank Support Makes a Difference
17 Rebound of Project Performance Ratings
18 Key Determinants of Project Performance
18 Project Factors of Success—Things that Managers Can Work On
21 Country Factors—Things that Managers Need to Take into Account
21 Factors Not Found to Be Correlated with Project Performance
22 Where to Focus Action?
23 4. Improving Lives in Cities by Implementing the Strategy
23 Livability—Decent Quality of Life and Opportunity for All, Especially the Poor
25 Good Governance—Inclusion and Accountability, Especially at the
Local Level
27 Bankability—Financial Soundness and Creditworthiness
28 Competitiveness—Efficient Markets in Cities
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I M P R O V I N G T H E L I V E S O F T H E P O O R T H R O U G H I N V E S T M E N T I N C I T I E S
31 5. Recommendations
33 Annexes
35 1: Urban Output and Outcome Indicators from the Urban Strategy Paper
37 2: Selected Performance Data—Urban Portfolio, 1993–2000
41 3: Urban Portfolio: Completed Projects, 1993–2000
45 4: Urban Portfolio: Ongoing Projects
49 5: Management Response
51 6: Chairman’s Summary: Committee on Development Effectiveness
55 Endnotes
59 Bibliography
Box
26 4.1 City Development Strategy
Figures
7 2.1 Timeline of Urban Portfolio Performance
9 2.2 Subsector Shares of Urban Projects and the Percent Satisfactory by Exit
Year, 1993–2000
17 3.1 Ratings Have Rebounded Strongly since 1995
21 3.2 Completed Urban Projects: Bank and Borrower Performance
Tables
2 1.1 More People—Including the Poor—Living in Developing-Country
Cities
6 2.1 The Bank’s Urban Portfolio at a Glance
8 2.2 Urban Policy and Economic Development, UPP-91
10 2.3 OED’s Review of 20 Years of Lending for Urban Development, 1972–92
12 2.4 Cities in Transition: World Bank Urban and Local Government
Strategy, USP
19 3.1 Results of Least-Squares Regression of Factors of Urban Project
Performance
i v
Preface
ities are home to 525 million poor people, and the World Bank makes
substantial investments in developing-country cities every year. This
Cstudy by the Operations Evaluation Department (OED) reviews the per-
formance of 99 urban development operations completed since 1993 to see,
in particular, how these interventions have improved the living conditions of
the urban poor, the primary goal of the livability pillar of the Bank’s current
urban strategy.
This is OED’s first review of the urban portfolio other data. These included country statistics from
since its 1994 study of the first 20 years of Bank the Bank’s World Development Indicators and
urban lending. Since that study was completed, city statistics from the U.N. Habitat Urban Indi-
the Bank has invested US$6 billion more in as- cators Program, as well as data from older proj-
sistance for urban development. ects covered by OED’s earlier 20-year review and
From Regional and OED assessments of proj- newer operations ongoing during this review.
ect performance and other sources, the present Designed primarily as a desk study, the present
study compiled a database of more than 120 vari- review also included interviews of 45 borrower
ables for each of the 99 urban operations com- managers of urban projects worldwide. Sup-
pleted during 1993–2001. Although the porting all this effort was a review of academic and
information in this database was the cornerstone professional literature relating to urban devel-
of the review, the evaluation also made use of opment, especially from non-Bank sources.
v
Acknowledgments
he core team for this work was made up managers in our client countries for their col-
of Roy Gilbert, Anna Amato, and Romayne laboration in our telephone interview, and also
TPereira. Roy Gilbert, lead evaluation offi- to Bank urban task managers for facilitating these
cer of the Operations Evaluation Department contacts. Written comments were gratefully re-
(OED), wrote the report. The telephone survey ceived from Robert Buckley, Tim Campbell,
of project managers was designed jointly with William Cobbett, Elizabeth Campbell-Page, Vic-
OED and conducted by the Gallup Organization toria Elliot, James Fitz Ford, Nils Fostvedt,
under the supervision of Ajay Bhardwaj, with Jonathan Kamkwalala, Christine Kessides, Omar
the assistance of Chris McComb, David Osborne, Razzaz, Gwen Swinburn, Gene Tidrick, and Tom
and Anna Maria Salih. For the extensive data Zearley. Christine Kessides was a peer reviewer
analysis conducted, the study benefited from of the report.
the help of OED colleagues Sohail Malik and The study was published in OED’s Partner-
Anju Gupta Kapoor. The core team also benefited ships and Knowledge Group, under the direction
from advice and inputs at various stages of this of Osvaldo Feinstein, by the Outreach and Dis-
work from fellow OED Urban Cluster members semination staff of the Knowledge Management
Soniya Carvalho and Ron Parker. Bill Hurlbut Unit, including Patrick Grasso, lead knowledge
and Caroline McEuen edited the report. Finally, management officer, Caroline McEuen, editor;
the team’s special thanks go to urban project and Juicy Qureishi-Huq, program assistant.
Director-General, Operations Evaluation:
Gregory K. Ingram
Director, Operations Evaluation Department:
(Acting): Nils Fostvedt
Manager, Sector and Thematic Evaluation:
Alain Barbu
Task Manager: Roy Gilbert
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