Approach Paper: World Bank Group's Approach to the
                    Mobilization of Private Capital for Development: An IEG Evaluation
                                 and World Bank Management Comments

                   Report to the Board from the Committee on Development Effectiveness
                                             Subcommittee Report ∗

                                             Meeting of May 6, 2019



       The Subcommittee of the Committee on Development Effectiveness (CODE) met to discuss the
IEG Approach Paper - World Bank Group's Approach to the Mobilization of Private Capital for
Development: An IEG Evaluation (CODE2019-0002/3, /5) and World Bank Management Comments
(CODE2019-0019).

         The CODE Subcommittee welcomed the opportunity to discuss the revised approach paper and
highlighted the importance and timeliness of the proposed evaluation given World Bank Group’s
commitment to mobilize greater volumes of private and public capital in support of the 2030 SDG Agenda.
With its leading strengths in both public and private sectors, the WBG is uniquely placed to create markets
and maximize finance for development by implementing systematically the Cascade Approach that
prioritizes private sector solutions, particularly in the most challenging settings such as IDA and FCV
countries. The Committee acknowledged that the evaluation would analyze the universe of World Bank
Group projects from FY07 to FY18 with direct and indirect mobilization, as per MDB-agreed definitions
and criteria, and should assess how private capital mobilization contributes to achieving the development
agenda of the Bank's client countries. Members underscored the importance of getting the reporting right
so as not to disincentivize collaboration with other multilateral and bilateral partners and of managing
expectations and clearly articulating the limitations of the evaluation upfront. They, therefore, welcomed
the proposed workshop in the final stages of the evaluation which will enable an interactive exercise
between IEG and WBG Management to discuss findings and develop actionable recommendations.

         It was noted that creating markets to help achieve the SDGs involves exploiting synergies among
WBG institutions for (1) linking policy reform, advisory, investment and mobilization activities to deliver
"solution packages"; (2) developing frameworks that promote competition, set standards, and enable
markets to function efficiently; (3) enabling demonstration effects, replication, and new productive
networks; and (4) building capacity and skills that open new market opportunities. Even the joint Capital
Package envisions the WBG to significantly expand the use of private sector solutions. A few members
highlighted that it was a missed opportunity not to analyze the contribution of World Bank support for
improving client countries' enabling environment to attract private capital. Others considered that the
evaluation scope would help inform the work of the WBG to reach its capital package targets in 2030. IEG
explained that expanding the proposed scope to include Bank catalyzation work was not a straightforward
or practical exercise at this time but committed to include an evaluation on the development outcomes and
impacts of Bank Group catalyzation activities in its future work program.




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    This report is not an approved record.