FOREWORD The international development community has adopted the Sustainable Development Goals (SDGs) to achieve universal and sustainable development over the coming 15 years. Among various global demands and development challenges towards 2030, the area of fragility, conflict and violence is undoubtedly one of the most pressing agendas of today in achieving the SDGs. The Republic of Korea seeks to help developing countries overcome the various challenges in sustainable development. Against this backdrop, the Republic of Korea established the Korea Trust Fund for Economic and Peace-Building Transitions (KTF) with the World Bank in 2010 with $24.2 million for the first phase. That initial phase has led to successful engagements and partnerships with Korean institutions to share accumulated development knowledge and expertise. Furthermore, KTF grants have been effectively linked with WBG lending operations and have provided assistance to projects in Myanmar, Thailand, and other countries worldwide. With its flexibility to support analytical and operational work, the KTF is well positioned to generate future collaboration between Korea and the World Bank in areas such as collaboration on development solutions through pilot programs and innovation, expanded knowledge exchange and learning opportunities on FCV issues, and maximizing support for vulnerable countries. Based on the fruitful results of the first phase, the Republic of Korea has decided to replenish its contribution to the KTF with an additional $15 million for a second phase over the next 3 years. Moving forward, Korea will continue to enhance this partnership through its support to the KTF, in sharing lessons learned on FCV issues and exploring Korea’s innovative development activities. We look forward to generating valuable results as part of the KTF’s Phase 2. Hyung Ik Ahn Director, Development Finance Division and Development Finance Bureau Ministry of Strategy and Finance Government of the Republic of Korea 2 | Korea Trust Fund Annual Report 2017 Fragility, conflict, and violence pose significant challenges for the World Bank’s goals of reducing extreme poverty and boosting shared prosperity. By 2030, half the world’s poor will live in environments marked by conflict and violence. At this critical juncture when the world grapples with multiple crises, the World Bank needs to harness the energy, knowledge, and creativity of our work and the support of our partners. Since 2010, the Republic of Korea has supported the World Bank’s initiatives in the areas of fragility, conflict, and violence through the Korea Trust Fund for Economic and Peace- building Transitions. This unique financing instrument has allowed the Bank to increase its support to countries struggling to manage fragility risks, to expand its understanding and approaches to fragility, conflict, and violence, and to engage partners across the humanitarian, development, peace, and security spectrums. The KTF has proven to be an important mechanism for priority peace-building activities where traditional International Development Association (IDA) or International Bank for Reconstruction and Development (IBRD) funding are unavailable. The 2017 Annual Report of the KTF provides an overview of the fund’s areas of work, operations, portfolio, and Phase 1 results. It also outlines a set of priorities for a second phase of funding: the Korea Trust Fund for Economic and Peace-building Transitions - Phase 2 (K-FCV). From 2018 to 2021, the K-FCV will carry forward lessons learned and best practices from the first phase of collaboration, continue to support implementation and strategy for World Bank operations, and expand collaboration with Korean institutions. As the World Bank expands and deepens its engagement to address fragility, violence, and conflict, partners such as the Republic of Korea continue to be invaluable collaborators in supporting development and realizing peace. Working together, we can help bring about inclusive development. Franck Bousquet Senior Director, Fragility, Conflict, and Violence Global Themes Global Themes Vice-Presidency The World Bank 3 ACKNOWLEDGMENTS The 2017 Annual Report of the Korea Trust Fund for Economic and Peace-Building Transitions (KTF) was prepared by a core team including Paul Bance, Suh Yoon Kang, Cynthia Delgadillo, Irina Galimova, and Yang Fu. The team extends its gratitude to the Ministry of Strategy and Finance of the Republic of Korea, the World Bank Group Executive Director’s Office for the Republic of Korea, and the World Bank Korea Office for continued support and collaboration to address fragility, conflict, and violence worldwide. The team would also like to thank the KTF Technical Advisory Committee for contributing their expertise, leadership, and time to ensure high-quality grant-making. The KTF Technical Advisory Committee is composed of Laura Bailey, Tekabe Belay, Franck Bousquet, Colin Bruce, Kevin Carey, Fei Deng, Sascha Djumena, Talib Esmail, Helene Grandvoinnet, Jimena Garrote, Michelle Keane, Claire Kfouri, Indira Konjhodzic, Janet Minatelli, Vikram Raghavan, Sunil Rajkumar, Paola Ridolfi, Faisal Quraishi, Tracy Washington, and Paul Welton. The team also extends its sincere thanks to the 42 KTF project teams, 36 recipient countries, and numerous executing agencies of KTF grants for their commitment to advancing innovative state and peace-building programming across the world. Lastly, we wish to thank Franck Bousquet and Colin Bruce from the Fragility, Conflict, and Violence Global Themes Department and Darren Dorkin from the World Bank Korea Office for their guidance, advice, and encouragement. ABBREVIATIONS & ACRONYMS AFR Africa Region
 CDD Community Driven Development C4D Collaboration for Development CE Citizen Engagement CHM Complaints Handling Mechanism CPIA Country Performance and Institutional Assessment CSC Citizen Service Center CSO Civil Society Organization
 EAP East Asia and Pacific Region
 ECA Europe and Central Asia Region
 EU European Union FCS Fragile and Conflict-Affected Situations
 FCV Fragility, Conflict, and Violence
 FCV GT Fragility, Conflict, and Violence Global Themes 4 | Korea Trust Fund Annual Report 2017 FY Fiscal Year (July 1 to June 30) GCFF Global Concessional Financing Facility GRM Grant Reporting and Monitoring GRM Grievance Redress Mechanism IBRD International Bank for Reconstruction and Development ICT Information and Communication Technology IDA International Development Association
 IDP Internally Displaced Person IFC International Finance Cooperation IMF International Monetary Fund KAIDEC Korea Association of International Development and Cooperation KDI Korean Development Institute
 KEXIM Import-Export Bank of Korea K-FCV Korea Trust Fund for Economic and Peace-Building Transitions, Phase 2 KIEP Korean Institute of International Economic Policy KOSTAT Statistics Korea KRC Korea Rural Community Corporation KTF Korea Trust Fund for Economic and Peace-Building Transitions LAC Latin America and the Caribbean Region
 LIC Low Income Country MDB Multilateral Development Bank MDG Millennium Development Goals MDTF Multi-Donor Trust Fund MENA Middle East and North Africa Region MIC Middle Income Country MILF Moro Islamic Liberation Front MOLG Ministry of Local Government, West Bank and Gaza MOSA Ministry of Social Affairs, West Bank and Gaza MOSF Ministry of Strategy and Finance, Republic of Korea
 MRRD Ministry of Rural Reconstruction and Development, Afghanistan NGO Non-Government Organization NVMS National Violence Monitoring System PSD Private Sector Development RAS Regional Advisory Services SAR South Asia Region
 SDGs Sustainable Development Goals SGBV Sexual and Gender-Based Violence SME Small and Medium Enterprises SMU Saemaul Undong SPF State and Peace-Building Fund
 UN United Nations WBG World Bank Group
 5 6 | Korea Trust Fund Annual Report 2017 TABLE OF CONTENTS SECTION 1 – THE KTF AT A GLANCE 9 SECTION 2 – MEETING THE CHALLENGE OF CONFLICT, FRAGILITY, AND VIOLENCE 13 Story of Impact: Building Trust through Community Approaches in Southern Thailand 17 SECTION 3 - ABOUT THE KTF 21 3.1 What We Support 21 3.2 Grant-making Process, Governance, and Management 23 Story of Impact: Sustaining Support to Myanmar’s Peaceful Transitions 24 SECTION 4 - 2017’S PORTFOLIO 29 4.1 Operational and Financial Status 29 4.2 New Projects 29 Story of Impact: Engaging Citizens in MENA through Innovation 30 SECTION 5 - ACHIEVEMENTS IN PHASE 1 35 5.1 Grant Allocation 35 5.2 Fund-level Results 37 5.3 Partnerships with Korean Institutions 39 Story of Impact: Working with the UN to find “Pathways for Peace” 42 SECTION 6 - LOOKING FORWARD TO K-FCV 45 ANNEXES 47 Annex 1: Financial Summary 47 Annex 2: All KTF Grants 49 Annex 3: K-FCV Results Framework 58 7 SECTION ONE 8 | Korea Trust Fund Annual Report 2017 THE KTF AT A GLANCE The Korea Trust Fund for Economic and Text Box 1: The Different Aims of Peace-Building Transitions (KTF) was State-Building and Peace-Building established in 2009 through an agreement between the Ministry of Strategy and Fi- nance of Korea (MOSF) and the World peace-building Bank Group (WBG). The goal of the KTF is to address governance and peace-building needs in conflict-prone and conflict-affected environments. The KTF supports the WBG’s state-building and peace-building initiatives by captur- peace-building seeks to develop ing and disseminating knowledge to help conditions, values, and behaviors that foster peaceful, stable, and WBG clients design, plan, and implement sustainable development. strategies and investments addressing fragility, conflict, and violence (FCV). The KTF also seeks to strengthen and state-building expand the WBG’s operations in FCV regions through piloting innovative ap- proaches to state and peace-building. The KTF is housed in the Bank’s Fragili- ty, Conflict, and Violence Global Themes state-building is geared toward (FCV GT), which is dedicated to FCV building or rebuilding governance response and collaborates closely with institutions to increase resilience the State and Peace-Building Fund (SPF) to internal and external stresses. also housed in the FCV GT. The KTF Secretariat oversees the fund’s day-to- day management and project portfolio. It study in Africa entitled Private Sector De- offers support to project task teams, con- velopment in Fragile and Conflict States. sults with donors on project proposals, The KTF has also funded global-level processes grants, and facilitates knowl- work focusing on knowledge building and edge-exchanges. The Secretariat leads research applicable to multiple regions partnership-building with relevant Korean of operation, such as the Learning on institutions and aggregates and dissem- SGBV (Sexual and Gender-Based inates knowledge gained through KTF Violence) in Operations Project that projects to inform the WBG’s strategy and increased client and WBG knowledge approaches in FCV settings. The Secre- of SGBV strategies in Fragile and Con- tariat also works with a larger pool of FCV flict-Affected Situations (FCS). GT staff members who provide technical and operational support to KTF projects. In 2017, the Republic of Korea commit- ted an additional $15 million for a Korea Since 2009, the Republic of Korea has Trust Fund for Economic and Peace- awarded over $24 million to the KTF. As Building Transitions – Phase 2 (K-FCV). a result, the KTF has been able to realize Over a three-year period, the K-FCV will 42 grants supporting projects in 36 coun- enable the WBG to carry forward achieve- tries and 6 regions. Grants have covered ments from Phase 1 of the KTF and country-specific projects, such as the provide continued funding for operation- Domestic Revenue Mobilization Project al support, development innovation, and in Timor-Leste, or provided support crisis risk management in FCS and non- across a region, such funding for an IFC FCS contexts. | 9 KTF’s Global Presence 6 36 42 regions and total countries total grants global-level targeted reached funded global 6 grants $1,560,463 committed 7.6% of portfolio middle east and north africa 1 grant $450,000 committed 2.2% of portfolio latin america and caribbean 2 grants $823,881 committed 4.0% of portfolio 10 ||Korea Korea Trust Trust Fund Fund Annual Annual Report Report 2017 2017 30 $19,286,255 12 grants completed as in cumulative grants of December 2017 disbursements active europe and central asia 4 grants $1,359,777 committed 6.6% of portfolio south asia 4 grants $1,864,356 committed 9.0% of portfolio east asia and pacific 16 grants $10,973,349 committed 53.1% of portfolio sub-saharan africa 9 grants $3,624,237 committed 17.5% of portfolio AVAILABLE FINANCING PROJECT RATING 79% committed 14% highly satisfactory 67% disbursed 21% moderately satisfactory 55% satisfactory || 11 SECTION TWO 12 | Korea Trust Fund Annual Report 2017 MEETING THE CHALLENGE OF FRAGILITY, CONFLICT AND VIOLENCE The Global Landscape in 2017 and serious, success in FCV-affected Fragility, conflict, and violence are critical countries is now essential to accom- development challenges threatening ef- plishing the WB’s Twin Goals of reduc- forts to end extreme poverty, affecting both ing extreme poverty and boosting shared low-income countries (LIC) and middle-in- prosperity. Making smart, efficient, and come countries (MIC). In 2017, about two effective investments in FCV situations billion people around the world were esti- is also a prerequisite for achieving the mated to live in FCV-affected countries. By Sustainable Development Goals (SDGs), 2030, projections show the share of glob- in particular SDG 16: al poor living in countries suffering from • Promote peaceful and inclusive FCV will range from 43 to 62 percent. societies for sustainable World Bank studies also confirm pover- development, provide access to ty trends are directly proportional to the justice for all and build effective, intensity of violence. accountable and inclusive institutions Today’s conflicts are often protracted, at all levels. leading to open-ended humanitarian cri- As a result, the World Bank is deepening ses and continuous forced displacement its focus on prevention and early action, within and across borders. Recent trends leveraging diverse partnerships, and show FCV is increasingly affecting MICs improving financing mechanisms in with conflicts occurring both sub-national- insecure and middle-income contexts. ly and across borders. Syria’s civil war has brought the number of refugees world- A Renewed Commitment wide to 20 million, the highest since World In the face of increasingly complex and War II, while a total of 60 million people growing threats, the WB and key partners are now forcibly displaced worldwide. are renewing their global commitment to Affecting several developing contexts, addressing FCV, emphasizing prevention violent extremism is more likely to occur and early action. In its new framework, in countries with inequality and exclusion the WBG aims to take a broader of certain groups, large-scale unemploy- approach to addressing risks and drivers ment, limited economic and social oppor- of FCV, expand its response to the forced tunities for youth, and perceived injustice. displacement crisis, and address gender Moreover, the aggregate economic cost disparities imperiling peace and security. of conflict on the global economy was es- timated at $14.3 trillion in 2014 – roughly With a focus on addressing instability and 13.4 percent of world GDP. Unmanaged, building resilience, the WBG will continue these threats pose risks and consequenc- to remain engaged with FCS during es with far-reaching spillover effects. active conflict and through recovery and transition periods. The WBG is also How is the World Bank Responding? investing in expanding its knowledge of Delivering sustainable development solu- FCVs by developing an FCV toolkit and tions to countries affected by FCV is both strengthening its staffing and operational an institutional priority and a global re- effectiveness in FCV contexts. sponsibility for the World Bank. As FCV risks have become more acute, complex, | 13 Text Box 2: Understanding the Current Situation 62 PERCENT According to the IMF, conflicts reduce GDP growth by 2 PERCENT POINTS per year, on average. of the global poor could be living in a fragile context by 2030. 80 PERCENT of all humanitarian needs and acute food insecurity is driven by conflict. Image 1: Drivers of Fragile and Conflict-Affected Situations are Diverse and Interlinked 14 | Korea Trust Fund Annual Report 2017 Strengthening Partnerships For middle-income countries, the Global Building on recognition that humanitarian, Concessional Financing Facility (GCFF) development, and peace-building efforts in its first year has unlocked more than are complementary in responding to FCV $1 billion in concessional financing for challenges, the WBG is leveraging part- Jordan and Lebanon’s Syria refugee nerships and developing joint approaches response. The GCFF is aiming for a with the UN, EU, and Multilateral Devel- further $500 million for other MICs over opment Banks (MDBs). In 2017, the WBG the course of the next four years. The and UN completed a joint study, Pathways Global Crisis Management Platform for Peace: Inclusive Approaches to Pre- will coordinate early action and further venting Violent Conflict, to improve under- develop the Bank’s financing instruments standing of how development processes for crisis response and recovery. New interact with security, diplomatic, and financing mechanisms also include $2.5 other approaches to prevent conflict. The billion to spur private enterprise and WBG is also expanding its engagement support for countries to mitigate the risk with local and international non-govern- of falling into fragility. ment organizations (NGOs) and non-state Fragile and Conflict-affected actors, particularly in insecure environ- Countries ments with limited state presence. These collaborations will be critical to the WBG’s In 2017, 34 countries qualified for the long-term success. WBG’s harmonized list of FCS countries. These countries were selected based on Better Financing Country Performance and Institutional More and better financing is needed at Assessments (CPIAs) which rate coun- scale to enhance the Bank’s effective- tries against a set of sixteen criteria ness in the world’s most insecure environ- grouped in four clusters: economic man- ments. The record $75 billion commitment agement, structural policies, policies for under the International Development social inclusion and equity, and public Association’s (IDA) 18th replenishment sector management and institutions. marks a strategic shift, signaling the Fragility, however, is not limited to these reduction of fragility and conflict risks as countries. A number of countries around a top development priority. This will en- the world face active conflicts, high rates able the Bank to double its resources for of violence, and potential risks. Working in countries affected by FCV to more than non-FCS contexts provides the WBG with $14 billion. analytical insight into the changing nature of FCV, particularly regarding sub-nation- al conflict, conflict in MICs, and regional spillover dynamics. | 15 Image 2: Countries that score above 3.2 on the CPIA qualify for the WBG’s harmonized list of FCS countries Table 1: Countries That Qualified for WBG’s Harmonized List of FCS in FY2017 IDA Eligible Afghanistan Dibouti Liberia Soloman Islands Burundi Eritrea Mali Somalia Central African Republic The Gambia Marshall Islands South Sudan Micronesia, Chad Guinea-Bissau Sudan Federal States Comoros Haiti Myanmar Togo Congo, Dem. Rep Kiribati Papua New Guinea Tuvalu Côte d’lvoire Kosovo Sierra Leone Yemen, Rep Territories West Bank and Gaza Blend Zimbabwe IBRD Only Iraq Lebanon Libya Syria 16 | Korea Trust Fund Annual Report 2017 STORY OF IMPACT Building Trust though Community Approaches in Southern Thailand Project Title: Expanding Community Approaches in Conflict Situations Grant amount: $490,000 Duration: August 2013 – April 2018 Dating back more than a century, the sub-national conflict in Thailand’s southernmost provinces is Asia’s oldest and deadliest conflict. Violence between groups of underground insurgents and government security forces stems from long-standing tensions between the state and the region’s minority Malay Muslim population. Malay Muslims represent over 80 percent of the population in the southern region but make up only 2.9 percent of the entire Thai population, which is overwhelmingly Buddhist. Against a highly centralized Thai political system, Malay Muslims have struggled against perceived systematic discrimination in local governance, political marginalization, and forced assimilation to a Thai national identify. Violence re-erupted in 2004 and has since claimed more than 6,670 lives and injured 12,000 people through assassinations, bombings and roadside ambushes, and occasional attacks on military institutions. The conflict, occurring in one of the poorest parts of the country, presents profound challenges to the social and economic development of the region. Although government policies have become more tolerant and inclusive, measures have been insufficient to reverse a legacy of grievances and resistance. KTF’s long-term support to development Since 2007, the WBG has worked in partnership with a wide range of actors to support peace and development in Thailand’s southern region. Over the past four years, the KTF along with the State and Peace-Building Fund (SPF) has supported the Expanding Communities Approaches in Conflict Situations Project, which seeks to build confidence between communities and local authorities through participatory local development approaches in six sub-districts and capacity-building of select local government officials and civil society organizations (CSOs). Targeting the provinces of Narathiwat, Pattani, and Yala, the project has already expanded participatory community development planning, enhanced local authorities’ capacity to undertake participatory local development activities, and strengthened the ability of CSOs to engage in dialogue on policy issues and peaceful conflict resolution. Project approaches and investments are resulting in important outcomes as measured by an internal project monitoring system, a KTF-financed impact evaluation, and mid-term and final assessments of peace-building grants to CSOs. Over 90 percent of surveyed villagers reported satisfaction with project outcomes. Strengthening ties among stakeholders The project’s participatory approach embeds civic engagement and social accountability. This approach has added value to government policies and programs, as well as strengthened the WBG’s advisory and operational partnerships. The Project Advisory Committee, chaired by the Public Debt Management Office and comprised of representatives from government, academia, and other local organizations such as the Local Development | 17 Institute, is providing valuable guidance and monitoring of project progress. The Department of Local Administration of the Ministry of Interior is collaborating to align planning and budgetary processes of grant activities with village and sub-village development plans, increasing the reach and sustainability of project inputs. Increased knowledge by villagers of local development plans has made them more willing to work with local government. A Peace-Building Partnership Fund, which supports organizations strategically positioned to influence the peace-building process, has facilitated the networking of organizations focused on policy advocacy and peace-building, particularly those organizations targeting vulnerable groups such as women, orphans, and youth. Making village grants possible KTF support has made possible three rounds of village block grants to all 43 communities in participating districts. Over 28,600 villagers - almost 60 percent of whom are women - actively engaged in Community Driven Development (CDD) block grant processes and activities. These block grants have financed community-identified priorities, including the construction and rehabilitation of buildings, expansion of savings groups and community cooperatives, natural resource conservation and ecotourism, water supply management, and the incorporation of peace education into the curriculum of more than 2,000 Islamic primary schools. Project funds have allowed civil society organizations to extend their reach into new areas, including the delivery of psychosocial services to affected groups, and the development of a written font for the local Yawi language. Overall, villages participating in the project appear more resilient to instances of violence than villages which did not participate. Trust within villages has increased as a result of the project, as did the amount of resident socializing and their willingness to help each other. Building on lessons learned This project builds on lessons learned from the Piloting Community Approaches in Conflict Situations in the Southernmost Provinces in Thailand Project, which operated from 2009 to 2013, and demonstrated the value of CDD and civil society capacity-building investments to fostering the government’s understanding of local issues and improved CSOs’ ability to engage with the government. Looking ahead, the Thai government has requested the WBG’s Reimbursable Advisory Services (RAS) to scale up CDD operations in all villages in southern Thailand, ensuring the project’s continuing impact. With the support of the KTF, a standard curriculum that incorporates peace education for Tadika or Islamic schools in Southern Thailand has been designed. 18 | Korea Trust Fund Annual Report 2017 “Teaching children what peace means can help. It won’t help immediately. However, if our younger generation learns this early on, there’s hope that we will have a peaceful future.” - Hasan Yamadibu, Teacher and Leader of the Bungaraya youth group, speaking about the peace education curriculum supported by the Expanding Community Approaches in Conflict Situations Project | 19 SECTION THREE 20 | Korea Trust Fund Annual Report 2017 ABOUT THE KTF As one of the World Bank’s key resources for engaging FCV-affected countries, the KTF has emerged as a catalytic, innovative, and flexible partner in preventing and responding to FCV risks, advancing key partnerships, and capturing global development knowledge. •T  hrough the provision of seed funding, the KTF has been able to catalyze the WBG’s work in FCV contexts, resulting in the rapid scale-up of WBG operations. In the Great Lakes Region of Africa, KTF’s support informed 4 operations valued at $500 million in the areas of displacement, cross-border trade, agriculture, and gender-based violence. In Myanmar, KTF funded initiatives are informing operations in health, education, extractives, public financial management, and rural development valued at $1.6 billion. •K  TF funds have encouraged the piloting of innovative approaches, including use of information and communication technology (ICT), in WBG projects to prevent and respond to risks in FCV settings. KTF support has also initiated cutting- edge analytical work on FCV issues expanding the WBG’s understanding of differentiated approaches to conflict and fragility. KTF funds have also supported the documentation and sharing of innovative approaches through funding for knowledge exchange events and new knowledge platforms. • As a highly flexible funding mechanism, the KTF has proven to be an invaluable partner in supporting developing countries facing FCV challenges regardless of geography, income level, and arrears status. KTF funds also finance the full spectrum of country services, from the promotion of conflict-sensitive strategies, the provision of technical assistance, and to the dissemination of knowledge and learning. Section 3.1: What We Support KTF grants seek to address state-building and peace-building needs to generate six fund-level results in one or more thematic areas. Image 3: The KTF Aims for Results in Six Key Areas | 21 Image 4: Thematic Areas Table 2: The KTF’s Peace-Building and State-Building Work Covers a Total of Ten Thematic Areas State-building Peace-building Public Financial Management projects seek Jobs & Private Sector Development projects to promote more effective and accountable provide support for job creation, livelihood public sector management and use of public improvement, microenterprise support, etc. resources. Typical project activities focus on anti-corruption initiatives and advancement of sustainable natural resource management. Justice-Oriented projects aim to promote Peace and Transition Agreements encompass inclusion and build capacity in the formal as well conflict and violence monitoring, national as informal justice sector. Project activities focus dialogue support, and the design of conflict on local-level dispute and conflict resolution, sensitive interventions. varied forms of human rights protection, repatriations for victims of conflict, as well as land reform and promotion of land rights. Policy Formulation is the most common form Social Cohesion projects are support refugees of state building in the KTF portfolio and aims and internally displaced people, and social to strengthen the capacity and performance programs that serve marginalized groups or of institutions in fragile contexts. increase inter-group trust. State-Society Relations projects aim to Gender projects provide support for improve social accountability mechanisms gender-sensitive activities, including sexual through support for civil engagement and gender-based violence (SGBV) prevention programs and capacity building for civil and response, programs targeting vulnerable society networks and NGOs. young men, and women’s empowerment and leadership programming. Service Delivery project activities include Resilience to External Stress projects provide conflict-sensitive and community driven support to cross-border development development initiatives to improve inadequate, programming, urban violence prevention, and poor or unequal access to basic services. disaster risk reduction, supporting national and local governance institutions in the face of external stresses such as cross-border violence, resource shocks, trafficking in drugs or people, and organized crime. 22 | Korea Trust Fund Annual Report 2017 Section 3.2: Grant-making, Governance, and Management The KTF’s grant-making process begins with funding requests from World Bank teams. After receiving concept notes for individual projects, the KTF Secretariat reviews submissions and short-lists funding candidates. If a project is selected to move to the full proposal stage, it undergoes an extensive peer-review process involving country specialists, thematic experts, and the KTF Secretariat prior to submission to the KTF Committee and the Korean Ministry of Strategy and Finance (MOSF) for approval. KTF grants can be Bank-executed or recipient-executed: Bank-executed grants are generally applied where client capacity is limited or (i)  occasionally in situations where the Bank has a particular comparative advantage. They are designed to offer technical assistance to government counterparts, generate in-depth knowledge and learning on FCV issues, and assess the impact of FCV- focused interventions. Recipient-executed grants are allocated to government counterparts, including (ii)  regional or local governments, public sector entities outside the executive branch, and international organizations such UN agencies. Recipients also include international and national non-government organizations (NGOs), universities, and research organizations. KTF grant-making is sufficiently flexible to respond quickly to requests for technical assis- tance or initiate catalytic analytical work on addressing specific FCV challenges. The flexibil- ity of KTF grants also makes them ideal for piloting innovative small-scale interventions that inform larger Bank operations helping them become more conflict-sensitive. Governance, management, and results monitoring All FCV GTs trust funds are governed by a committee within the World Bank charged with approving grants and providing strategic guidance. The approval of MOSF is also required for KTF projects valued in excess of US$0.5 million. KTF grants are subject to the same rigorous technical, legal, and fiduciary due diligence as all other Bank projects. To ensure consistent monitoring and performance measurement of project results, a comprehensive results framework is applied to all KTF grants. The framework captures both fund-level and project-level results and includes sample indicators to help document progress toward specific objectives. Project teams must report yearly on progress against fund-level objectives through the Bank’s grant reporting and monitoring (GRM) system. | 23 STORY OF IMPACT Sustaining Support to Myanmar’s Peaceful Transitions Project Title: Support to the Myanmar Peace Process Grant Amount: $2,954,973 Project Duration: August 2013 – December 2018 After decades of isolation and conflict, Myanmar is undergoing a ‘triple transition’ of peace- building, democratization, and economic liberalization. Launched in 2011 and formalized in the signing of a Nationwide Ceasefire Agreement in 2015, Myanmar’s ongoing peace process offers the best hope of lasting peace in a generation, and interacts closely with parallel economic and political transitions unfolding in the country. While the peace process to date has led to increased security in the country’s southeast region and to ceasefire agreements with some ethnic armed organizations, fighting persists in the country’s northeast and the path to a comprehensive peace agreement addressing drivers of conflict remains uncertain. Moreover, the overall country context remains fragile with high political risks, as seen in the ongoing crisis in Rakhine State that displaced over 600,000 people to Bangladesh in 2017. Taken together, these factors require development partners to deepen their understanding of the country context, monitor evolving risks and opportunities, and adapt operations accordingly in real-time. Supporting the Bank’s Scale-up in Myanmar When the WBG began to re-engage Myanmar in 2012 in support of transformations underway, a key challenge was how to understand and support all three transitions and seize on their inter-linkages, rather than limiting activities to the promotion of broad-based economic transition. As a result, a flexible approach was needed allowing the WBG to support the peace process while remaining alert to the country context and address drivers of fragility. Over the past four years, the KTF has played a major role in supporting WBG’s rapid scale-up in Myanmar and contributing to sustainable peace and prosperity. With KTF support, the WBG has ensured its portfolio in Myanmar remained cognizant of risks, seized opportunities to support the peace process wherever possible, and leveraged donor funds across its activities. Promoting Aid Effectiveness Evidence shows long-term KTF support has had a substantial impact on aid effectiveness, building a shared knowledge base, and ensuring conflict sensitivity in WBG operations in Myanmar. The project contributed technical input and an M&E framework for the establishment of a peace-focused Multi-Donor Trust Fund (MDTF), which sought to better coordinate development aid. Engagement with the MDTF has allowed the WBG to shape the aid agenda and positively influence the work of development partners. The WBG has also promoted consistency in donor approaches and adherence to global good practice through active participation in donor and government forums for peace and conflict, such as the Peace Support Group and the Rakhine Head of Missions Group. 24 | Korea Trust Fund Annual Report 2017 Filling Knowledge Gaps The KTF has ensured the WBG continues to be a valued partner in helping stakeholders consider critical issues in addressing drivers of fragility and supporting progress toward reducing poverty and boosting shared prosperity. KTF support for the Beyond Ceasefires Initiative harnessed public and private discussions of technical issues relevant to the peace process to build trust and understanding among government, ethnic armed organizations, and development partners. KTF support also enabled five South-South study tours which brought Myanmar participants abroad and brought leading international experts to Myanmar. The WBG also provided guidance and strategic direction to a flagship study by The Asia Foundation. Published in 2017 to positive reception from a wide range of stakeholders, the study entitled Contested Areas of Myanmar examines interactions among aid, conflict, and development in Myanmar and seeks to influence strategies and actions by government and development partners. Ensuring Conflict Sensitivity in WBG Operations KTF support has also created opportunities for innovation, such as the piloting of new approaches to manage risks in FCS. This support enabled country team to enhance their conflict monitoring system, moving beyond one-off risk analyses toward ongoing mechanisms to identify changes in country context in real-time: including monthly risk reports that track developments across key risks factors and regular briefings with Myanmar experts to review the impact of current events on the WBG’s portfolio. The grant also supported integration of conflict sensitivity across operations of both Bank and IFC teams, which included training alongside government counterparts. By ensuring the integration of conflict sensitivity in the WBG portfolio, KTF support has allowed for successful and rapid scale-up of WBG assistance in a complex FCV context. Continuing Support The KTF’s impact in Myanmar highlights the value of flexible support allowing for rapid adaptation in highly fluid and dynamic environments. As Myanmar looks ahead to its long- term transitions and second national elections in 2020, the WBG will continue to work with the government on operational needs response while managing risks and seizing opportunities in support of peaceful transitions. "I would like in particular to acknowledge the funding support of the Korea Trust Fund for Economic and Peace-Building Transitions, which has supported the Bank’s peace and conflict work in Myanmar since the beginning of our re-engagement. This support has enabled the Bank to integrate conflict sensitivity in our portfolio and to help build a shared knowledge base among government, ethnic armed organizations, and development partners [.] The country team and I are grateful for this important sustained support and the work of our social development team in leading this engagement on the ground."  ictoria Kwakwa, Regional Vice President, East Asia and the Pacific, -V WBG, 19 October 2017. | 25 The World Bank’s EAP Vice President Victoria Kwakwa at the World Bank Headquarters launch of The Contested Areas of Myanmar: Subnational Conflict, Aid, and Development. Panelists included Patrick Barron, The Asia Foundation, Country Director Ellen Goldstein, FCV Director Colin Bruce, and Executive Director Andin Hadiyanto. Myanmar government staff at a KTF-supported conflict sensitivity training session. Photo credit: Nikolas Myint, World Bank. 26 | Korea Trust Fund Annual Report 2017 dissemination facts & figures (January 2018) | 27 SECTION FOUR 28 | Korea Trust Fund Annual Report 2017 2017's PORTFOLIO In the 2017 calendar year, the KTF continued to contribute to tangible results at the country, regional, and global level through expanding the WBG’s global knowledge and learning on FCV, supporting pilots and innovation, and partnerships with Korean institutions. Section 4.1: Operational and Financial Status1 Cumulative disbursements of KTF grants in the amount of $19,286,225 have been made since the fund’s establishment, out of which $4,073,184 was made in 2017. A contribution of $5 million was received from the Korean government as the first installment of a total $15 million pledge for Phase 2 of KTF funding. With an opening balance of $8,698,926 from 2016, the uncommitted balance at the end of the 2017 was $6,226,420. KTF-funded projects continued to demonstrate strong performance records in 2017. Overall, 90 percent of grant projects are rated satisfactory or above and their average disbursement rate is 67 percent. At the end of 2017, 30 grant projects have been completed with 12 grants remaining active. Section 4.2: New Projects In line with KTF priorities, 3 new KTF projects in the East Asia and Pacific (EAP), South Asia (SAR), and Europe and Central Asia (ECA) regions commenced in 2017the . Funded projects fell under the thematic areas of State-Society Relations, Social Cohesion, and Public Finance Management. Table 3: New KTF Projects in 2017 Project Objective EAP Thailand: Strengthening Improve state-citizen relationships through demonstrating Confidence-Building the feasibility and value of participatory local development Measures in Subnational approaches and supporting institutional capacity-building of civil Conflict ($495,000) society networks and organizations, by (i) providing knowledge and evidence on peace-building approaches, and (ii) fostering constructive dialogue between the state and non-state actors. SAR Pakistan: Social and Support civic inclusion and economic empowerment of young Economic empowerment men and women in Khyber Pakhtunkhwa, Pakistan, through the of youth through ICT-based use of ICT based solutions. solutions in Khyber Pakhtunkhwa ($733,900) ECA Western Balkans: Support a review of the rules-based fiscal framework in the Strengthening Fiscal region as well as generate and share knowledge on approaches Institutions to Build to designing fiscal rules and building fiscal institutions to help Resilience ($250,000) address economic fragility. 1  In the reporting period, the KTF Secretariat conducted a thorough performance review of the fund’s portfolio. Based on this review, data was updated to reflect projects that have closed and the fund balance of the closed grants that was returned to the main fund. Adjustments between the data in the KTF 2016 Annual Report and the KTF 2017 Annual Report reflect this review. | 29 STORY OF IMPACT Engaging Citizens in MENA through Innovation Project Title: Middle East and North Africa Citizen Engagement Grant Amount: $450,000 Project Duration: July 2014 to January 2018 Project Duration: July 2014 to January 2018 Engaging citizens through grievance redress mechanisms, citizen service centers, independent citizen feedback, and participatory planning processes can empower citizens and civil society, provide checks and balances against corruption and fraud, provide transparency and accountability for timely service delivery, and build trust in local institutions. These are critical factors in minimizing underlying drivers of fragility. Despite consensus in the development community that citizen engagement (CE) plays an important stabilizing role in fragile and conflict-affected countries, the use of CE in FCV countries faces substantial challenges, including weak state legitimacy, low CE capacity, and the perception CE efforts are less immediately relevant than short-term humanitarian aid. In the MENA region, this challenge is particularly acute: according to WBG’s 2016 Worldwide Governance Indicators, the region has the lowest Voice and Accountability scores.2 Piloting CE in Six Contexts With the key support of the KTF, the MENA Citizen Engagement Project aimed to provide key technical assistance to amplify citizens’ voices in policy-making decisions and public service through use of innovative technologies. As a pilot initiative in Iraq, Yemen, the West Bank and Gaza, Libya, and Lebanon, the project sought to grow the WBG’s experience in applying CE to FCV contexts by identifying CE entry points and designing CE mechanisms tailored to post-conflict and fragile countries. The program emphasized where possible mainstreaming mechanisms to strengthen local institutions in line with the MENA regional strategy. The project carried out three types of activities: (i) analysis and inputs at the strategic level; (ii) technical support on integration of CE mechanisms in existing MENA projects; and (iii) capturing lessons learned through dissemination of best practices. Successes Following two years of KTF support, the pilot project has successfully provided assistance to clients and WBG teams across the MENA region. The project supported diagnostics and capacity building of Grievance Redress Mechanisms (GRMs) and Complaints Handling Mechanisms (CHMs) in Lebanon’s Emergency Health Care Restoration Project and Voice and Accountability scores capture perceptions of the extent to which a country’s citizens can participate in 2 selecting their government, as well as have freedom of expression, freedom of association, and a free media. 30 | Korea Trust Fund Annual Report 2017 National Poverty Targeting Program, and the West Bank and Gaza’s Cash Transfer Project. Training, clinics, and capacity building activities were carried out at the regional level and have resulted in South-South knowledge exchanges and a World Bank Conference on Mainstreaming Citizen Engagement in FCV Countries held in Jordan in 2017. This conference brought together WBG task teams and clients from the MENA and South Asia Region (SAR) to share learning from the KTF-supported pilots. The project has also improved institutional trust and legitimacy at the municipal level through the West Bank and Gaza Municipal Development Project series. Nearly 90 percent of citizens surveyed responded municipal services improved after establishment of Citizen Service Centers (CSCs)3. More recent data show municipalities with CSCs scored 4.5 percent higher on overall municipal performance than those without. Municipalities with citizens using GRMs had close to a 2 percent higher performance score. Across the West Bank and Gaza, similar approaches to CE are being scaled up by development partners across the entire municipal sector. In Libya, the project built the capacity of civil servants to support implementation of the Local Administration Law (2012) and understand the role CE can play in improving service delivery outcomes and strengthening the state and society relationship. Challenges In Yemen, although the project provided diagnostic support and design of a digital Complaints Handling Mechanism (CHM), Yemen’s deteriorating security situation and resumption of conflict prevented implementation. In Iraq, a worsening security situation and concerns about abuse of data also delayed project implementation. Changing Perceptions around CE Evidence suggests the pilot project shifted clients’ perspectives toward CE. Across the West Bank and Gaza, GRMs and budget transparency are now integrated as core indicators in allocation of municipal performance grants. The Ministry of Local Government (MOLG) has organized a national workshop on social accountability at the local government level, chaired a new social accountability committee, and endorsed social accountability policies and tools. After receiving recommendations from CE technical experts, the Ministry of Social Affairs (MOSA) piloted a new CHM system in the governorates of Jenin and Abu Dees, with plans currently underway to implement the system in all governorates under MOSA. MOSA is currently engaging in peer-to-peer exchanges with counterparts in Tunisia and Lebanon, thus building a knowledge network on grievance redress within the region. CE Approaches Going Forward CE approaches piloted by this KTF grant now function as a model to new clients. Experience has shown that mainstreaming CE is a long-term process best built upon existing structures, allowing for institutional learning, and providing incremental changes. In fragile contexts, room exists for both ICT and non-ICT tools to ensure no group is excluded by the digital divide. The learning from this pilot project has been captured in a regional Collaboration for Development (C4D) platform for exchange among WBG staff, clients, and others. Continued support and investment is needed to ensure CE approaches are sustained in MENA’s FCV contexts. 3 Municipal Development and Lending Fund, Citizen Satisfaction Surveys, 2015. | 31 The Collaboration for Development (C4D) Knowledge Community, open to WBG staff, clients, and development practitioners, provides a forum for exchange and hosts more than 300 documents on citizen engagement and social accountability in Arabic, French, and English. It includes lessons learned and best practices from the KTF-funded CE project. The Palestinian Ministry of Local Government published Jenin municipality’s 2017 budget which depicts expenditures and financing sources. 32 | Korea Trust Fund Annual Report 2017 Palestinian Ministry of Local Government representative Raed Sharabati presents on newly implemented social accountability measures within MOLG at the World Bank Conference on Mainstreaming Citizen Engagement in FCV Countries in MENA, on November 28, 2017 in Amman, Jordan. | 33 SECTION FIVE 34 | Korea Trust Fund Annual Report 2017 ACHIEVEMENTS IN PHASE ONE To date, the KTF has supported projects around the world including 16 grants in non-FCS countries or regions. Projects from diverse countries have contributed to outcomes under all 6 objectives of the Phase 1 results framework. Phase 1 also witnessed the initiation and strengthening of new partnerships between Korean institutions and the WBG. Section 5.1: Grant Allocation In Phase 1, EAP hosted the largest number of KTF-supported projects, with 16 total projects or nearly 40 percent of all projects. This translated into a total grant allocation of almost $11 million or 53 percent of total funds. Myanmar was the largest recipient of KTF funds, with a portfolio of 2 grants totaling $3.4 million in funding. Funding to Myanmar focused on supporting the peace process and strengthening an evidence base on poverty using mixed methods. The Philippines was the second largest recipient country of KTF funds, with a portfolio of 4 grants totaling $2.5 million. These funds have contributed to a sustainable peace process, initiatives for Islamic financial inclusion, and development of a conflict monitoring system in Bangsamoro. Indonesia is the third largest country recipient with a total of $2 million in funding, which primarily supported development of a National Violence Monitoring System (NVMS). AFR hosted the second largest number of KTF-supported grants with 9 grants worth a total allocation of $3,624,237. This was followed by grants to SAR, valued at $1,864,356 and grants to global-level work valued at $1,560,463. Over Phase 1, MENA received the lowest allocation with 2 grants worth a total of $450,000. Graph 1: Total KTF Grant Allocation by Region in Percentage | 35 Graph 2: Where Does KTF Support Go Nearly 60 percent of KTF grants focused on three thematic areas: Policy Formation, State-Society Relations, and Service Delivery. Public Finance Management, Justice, Gender, and Resilience to External Stress appear to be the least engaged thematic areas. Thirty-five percent of KTF funding supported IDA programs in FCV, while 32 percent supported IBRD countries affected by conflict. Graph 3: Breakdown of Thematic Areas Supported Note: Some projects cover more than one thematic area. The primary thematic area was selected for the purposes of this graph. 36 | Korea Trust Fund Annual Report 2017 Graph 4: Funding to IDA FCV and IBRD in Crisis Section 5.2: Fund-level Results Objective 1.1 Promote FCV-sensitive strategies – supporting approaches that address a broad range of FCV challenges, align with regional priorities, advance existing country strategies and portfolios, and deepen WBG programming and knowledge on FCV-sensitive strategies. Select results: • In Myanmar, the KTF supported the peace process through conflict analyses, active risk monitoring, and donor coordination. This enabled the WBG to pro-actively integrate conflict-sensitivity in the WBG’s $1.6 billion lending portfolio in the areas of education, health, extractives, and rural development. n the Great Lakes Region, the KTF supported the design of conflict sensitive •I strategies and six projects addressing root causes of violence. These projects tackle issues ranging from integrated agricultural growth, cross border trade, to SGBV. Studies were conducted on the vulnerabilities and resiliencies of actors involved in cross-border trade and on the linkages involving land, displacement, and conflict.  he KTF supported political economy analysis in the Democratic Republic of •T the Congo that helped make the Bank’s engagement more conflict sensitive by promoting increased understanding of forced displacement challenges. Objective 1.2 Foster partnerships – building and maintaining strong partnerships in engaging a variety of partners and grant recipients to ensure coherent development interventions in FCV settings. • The KTF supported a conference and field visits on Community Driven Development (CDD) programs involving Afghanistan’s Ministry of Rural Reconstruction and Development (MRRD) and representatives from 4 CDD programs. This resulted in establishment of a network of practitioners to continue to exchange knowledge and learning from each other’s programs, as well as follow-up implementation plans for Afghanistan, Kenya, Myanmar, Nepal, and the Philippines. | 37  artnerships are being developed with various Korean institutions: the Public and •P Private Infrastructure Investment Management Center at the Korean Development Institute (KDI) on private-public partnership; Hana Foundation on refugee issues; Korea Institute for International Economic Policy on private sector development (PSD) joint analytical work; Korea Institute of Public Finance for technical assistance to a project in Timor-Leste; and the Human Resources Development Service of Korea for technical assistance in Pakistan on ICT. Objective 1.3 Take risks and monitor results – piloting new and innovative areas of programming, with a focus on monitoring, evaluation, and learning. n southern Thailand, the KTF supported the evaluation of a community •I development program and helped guide and incorporate key findings from the evaluation in local development planning. n the Sahel and Horn of Africa, the KTF contributed to enhancement of monitoring •I and evaluation systems related to pastoralist conflicts through creation of an online monitoring platform in livestock corridors. This project has been linked to $2 million from IDA for pastoral livelihoods development projects in the region. • In the West Bank and Gaza, the KTF supported implementation of an e-governance platform to empower citizens to demand better services and monitor use of public resources. Objective 1.4 Respond to urgent need – effectively disbursing financing to provide rapid support to requests for urgent technical assistance. n Mali, the KTF supported the WBG’s work on forced displacement through a •I household survey of internally displaced persons (IDPs) that incorporated innovative technological methods such as mobile phone surveys. • Analytic and technical assistance on forced displacement, supported through the KTF, led to analyses and studies in the Great Lakes region of Africa. This project informed the design of Displaced Persons and Border Communities in Africa, a $20 million IDA operation. Objective 1.5 Strengthen institutions – building the long-term capacity and legitimacy of both formal and informal institutions to manage stresses that increase the risk of conflict and violence, with an emphasis on documenting innovative pilots. • In Eastern Europe and Central Asia, the KTF improved the capacity of governments to provide inclusive and equitable land administration systems and land restitution processes. As part of this project, the KTF supported a Real Estate Registration Project that included vulnerability mapping and social monitoring to protect the land rights of vulnerable groups in Bosnia and Herzegovina. The project also developed an action plan for a land leasing program to improve access to land for IDPs in Georgia.  TF support allowed for advisory assistance to be provided to the government of •K the Philippines to promote investment and jobs in Bangsamoro and strengthen 38 | Korea Trust Fund Annual Report 2017 government accountability mechanisms. The KTF also funded a needs assessment of ex-combatants from the Moro Islamic Liberation Front (MILF). This assessment is expected to closely inform the design of assistance packages for ex-combatants and communities. n Timor-Leste, the KTF supported the development of a new revenue mobilization •I policy and strengthening the state’s ability to mobilize non-oil revenue. The project also contributed to increasing effectiveness of the Tax Office, improving the regulations and procedural codes for value-added tax, and establishing a large Taxpayer Office. • In Pakistan, KTF funds have supported civic inclusion and economic empowerment of young women and men through information and communication technology (ICT)-based solutions. A total of 15,000 youths have been trained on an online freelancing model. In addition, the project has developed a curriculum for a coding and entrepreneurship ‘bootcamp’ and a Digital Fellowship Program. Objective 1.6 Capture and disseminate knowledge – capturing operationally relevant learning that improves the WBG’s ability to tackle FCV and respond to client demand. • In South Asia, the KTF supported learning on improving the effectiveness of service delivery in FCS through a South-South learning exchange and analytics that drew on global good practices. As a result, the WBG’s SAR operations increased their level of knowledge on building effective institutions in low-capacity states.  hrough a Learning on SGBV Operations Project, the KTF supported two learning •T tours in Papua, New Guinea and Nepal to identify regional best practices and strengthen research and knowledge-sharing around SGBV.  he KTF supported the publication of Rebuilding Public Services in Post-Conflict •T Countries: A Comparative Study of Reform Trajectories in Afghanistan, Sierra Leone, South Sudan, and Timor-Leste. The study was dissemination at a joint workshop with the Korean Institute for Public Administration (KIPA) and lessons from the study have informed WBG projects in the Central African Republic, Somalia, Liberia, South Sudan, and Zimbabwe.  he KTF commissioned four studies contributing to the flagship UN-WBG report •T Pathways for Peace: Inclusive Approaches to Preventing Violent Conflict. This included funding a Korean doctoral-level researcher affiliated with the Korea Association of International Development and Cooperation (KAIDEC) and who was based at Princeton University for a year working with the WBG team. Section 5.3: Partnerships with Korean Institutions | 39 The KTF places a strong emphasis on development of a g7+ tracking portal for partnerships with Korean institutions the SDGs. The KOSTAT experts provided and mutual learning among those institu- peer-to-peer learning by sharing Korea’s tions, the WBG, and local actors in FCV expertise in data and ICT to g7+. Through contexts. Korea’s historical development bilateral meetings between the KOSTAT and economic successes offer lessons and g7+, KOSTAT gained a better under- learned that can be of practical applica- standing of existing needs of some g7+ tion to many FCS countries. Korean in- participants and identified potential bilat- stitutions are uniquely positioned to draw eral training programs. on these experiences and, through KTF support, help deliver tangible results for Knowledge Exchanges on Community WBG clients. Additionally, this collabo- Driven Development ration and engagement deepens the un- In collaboration with the KDI School, the derstanding of Korean academics and KTF supported the “Knowledge Exchange development practitioners about best on Rural Community Driven Development practice and ongoing challenges in FCV in Fragile and Conflict Affected Coun- contexts. Over Phase 1 of the KTF, part- tries” event in 2016. The event brought nering with Korean institutions has includ- together 14 government representatives ed research, knowledge-exchange, and from Afghanistan, Kenya, Myanmar, Ne- technical assistance initiatives leveraging pal, and the Philippines, as well as World Korea’s expertise. Bank staff and experts from nine Kore- an universities and institutions, including Facilitating Dialogue with G20 and Saemaul Undong Center (SMU) which g7+ Group of Fragile States provides training on international develop- In close partnership with the Korean De- ment. The exchange focused on sharing velopment Institution (KDI) School of lessons learned from the Korean devel- Public Policy and Management, the KTF opment experience and promoting peer- supported two annual events in Seoul to to-peer learning among FCV countries. facilitate dialogue between the G20 and Participants made field visits to the Kore- g7+ group of 18 fragile and conflict-af- an Rural Community Corporation (KRC) fected states. In 2013, representatives and the Agriculture Technology Center of attended a Global Leadership Course the Sejong Metropolitan Authority to learn on the G20 and Peace-Building where more about Korea’s CDD efforts. Partic- Korean representatives shared the coun- ipating countries developed action plans try’s development experience. In 2014, a and requested further capacity-building roundtable discussion between members and technical support from SMU. of the G20 and g7+ group discussed chal- lenges of growth, employment, and infra- As part of the Expanding Community structure in advance of the G20 summit Approaches in Conflict Situations Project in Brisbane. These events increased G20 in southern Thailand, an international knowledge and understanding of FCV Community Driven Development (CDD) challenges and international responses in conference in fragile and conflict-affected FCV contexts. g7+’s capacity to engage areas is planned for 2018 between the in critical global issues such as extractive Research and Development team of KDI industry development and employment in and the WBG team. The Thai government, fragile contexts also increased. including the Front Command Cabinet, the National Security Council, and the Engagement by Korean institutions with Southern Border Province Administration the g7+ subsequently continued. In May Centre, and CSOs will partner with the 2016, the KTF supported the participa- WBG to make this event reach as many tion of two experts from Statistics Korea stakeholders as possible. (KOSTAT) in the g7+ technical meeting on SDG monitoring in Nairobi, Kenya. Korea Week 2015 Approximately 50 participants from the Jointly organized by the WBG and MOFA, 20 g7+ member countries and interna- Korea Week was held in Seoul from tional organizations convened to devel- June 1-5, 2015. The event provided an op common indicators and discuss the opportunity to highlight the KTF as one of 40 | Korea Trust Fund Annual Report 2017 Participants during a site visit to Agricultural Technology Participants at the “Knowledge Exchange on Rural Community Center in Sejong Metropolitan City Driven Development in Fragile and Conflict Affected Countries” "Korea’s remarkable progress gives hope to us that our situations can be changed to achieve the same status." "We were surprised by the rapid economic development of Korea. The SMU Movement laid the foundation, allowing Korea to achieve modernization and development." Participants from the workshop titled, “Knowledge Exchange on - Rural Community Driven Development in Fragile and Conflict Affected Countries” the key WGB-Korea partnerships. FCV Senior Management made several presentations and the government of the Philippines presented KTF’s innovative and flexible support to the Mindanao Peace Process. In partnership with Import-Export Bank of Korea (KEXIM), Korean Institute of International Economic Policy (KIEP), and Seoul National University, the KTF organized complementary side events to Korea Week. A workshop titled ‘Perspectives on Economic Transitions’ brought together Korean and World Bank experts on transitional economies and recovery post-conflict to discuss lessons learned and implications for new transitions. This workshop set the stage for continued knowledge exchanges and joint analytical work between the WBG and Korean institutions on conflict prevention and transitions in FCV environments. In February 2016, a follow-up event was organized in Washington, DC, bringing experts from Korea University and Yonsei University to discuss their work and implications for WBG operations. Highlighting the Private Sector’s role in FCS Research from the World Development Report 2011 and the Peace and State-Building Goals of the New Deal (PSG) shows an increasing recognition that private sector development (PSD) can effectively enhance the impact of development interventions in FCS. As part of an IFC study titled Private Sector Development in Fragile and Conflict States, the KTF supported a complementary study of China, Japan, and Korea’s corporate engagement in FCS countries in Africa. The purpose of the complementary study, China- Japan-Republic of Korea Corporate Engagement in FCS Countries, which involved participation by the Korean Institute for International Economic Policy in its conception phase, was to make findings relevant for the Korean private sector and assist FCS host governments, Millennium Development Goals (MDGs), and international organizations in reflecting on how they can enhance the positive effects of PSD and economic prosperity in African FCS. A conference is tentatively planned for 2018 to build awareness and strengthen the relationship between the WBG and Korean development actors such as the Korea Development Institute, agencies related to SMEs (KOTRA, Small and Medium Business Administration, Korean Federation of SMEs), the Korea Export-Import Bank, Korea Institute for International Economic Policy, and Korean universities. | 41 STORY OF IMPACT Working with the UN to find “Pathways for Peace” Violent conflict is on the rise and increasingly recognized as one of the biggest obstacles to reaching the Sustainable Development Goals (SDGs) by 2030. Preventing conflict and violence is an urgent agenda shared by the UN and the WBG. In taking office, UN Secretary-General Antonio Guterres called prevention of violent conflict ‘the priority’ and has made it the organizing principle for UN reform. At the same time, the WBG has made the reduction of conflict risks a central priority of its expanding engagement in situations of fragility, conflict, and violence, particularly given the 18th replenishment of the International Development Association, the WBG’s fund for the poorest countries. Groundbreaking Pathways for Peace Report The UN-WBG flagship report Pathways for Peace: Inclusive Approaches to Preventing Violent Conflict is a first-of-its-kind study in which the two institutions unite on the prevention agenda. Using evidence from the past 16 years and original analysis, the report shows that prevention can be accomplished, is cost-effective, and can be successful. Importantly, the report makes a case for placing prevention at the center of development efforts and provides recommendations for national governments, international organizations, and other relevant actors. The report’s key findings have already begun to influence the global policy debate on prevention, as seen at the UN General Assembly in September 2017 and at a roundtable during the WBG-IMF Annual Meeting in October 2017. The KTF’s Support Pathways for Peace benefited from the support of the KTF through the commission of four studies published by Princeton University Press. “Aid Flows to Conflict-Affected Situations: Exploring Cross-Country Empirical Studies and Updated Data” and “Understanding Risk and Resilience to Violent Conflict” examine critical questions of the extent to which aid is correlated with the onset, intensity, and duration of violent conflict and identified areas where policy intervention can enable resiliency to conflict. “Evaluating Conflict Forecasts: Criteria, Approaches, and Tools” and “A Review of Conflict Forecasting Models” assesses the performance of existing conflict forecasting models in terms of accuracy, precision, and accountability and provides a critical review of these early-warning tools. These original studies contributed directly to the Pathways for Peace report’s findings and recommendations. In particular, “Understanding Risk and Resilience to Violent Conflict” and consultations around this paper substantially influenced the final report’s risk-centered prevention framework. Support from the KTF will enable the dissemination of Pathways for Peace in East and South-East Asia, where launch events in Bangkok, Seoul, and Jakarta will engage a broad audience of policy makers, peace-building agencies, academia, think-tanks, civil society, and the private sector. In light of Korea’s chair of the Peace-Building Commission and leadership role on peace-building initiatives, activities in Seoul will be developed in consultation with the Korean government. This will follow the dissemination of the full report in March 2018 at the WBG’s Fragility, Conflict, and Violence Forum in Washington, DC. 42 | Korea Trust Fund Annual Report 2017 Engaging strategic audiences in Asia on the main messages and recommendations from Pathways for Peace will be crucial to advancing regional dialogue on prevention as a universal agenda and building inclusive partnerships. This will also provide an opportunity to present the report’s findings and recommendations related to conflict trends and dynamics in Asia and generate practical ideas on how to proceed on the report’s recommendations in a regional context. “The joint UN-World Bank study, Pathways for Peace: Inclusive Approaches to Preventing Violent Conflict, is an important step. This endeavor was a first for our two institutions, and it had the strong support of the global community, benefiting from many partners who provided valuable insight. As a development institution, the World Bank Group is putting prevention first to build a less violent, more stable, more resilient world.” Jim Yong Kim, World Bank Group President, at the UN General Assembly, - September 2017. At the UN General Assembly in September Alexandre Marc, the World Bank’s Chief Specialist, Fragility, Conflict and 2017, the UN Secretary-General and the Violence Global Theme, speaks at the UN General Assembly in WBG President launched a preview of September 2017. the Pathways for Peace report’s main messages for policymakers. | 43 SECTION SIX 44 | Korea Trust Fund Annual Report 2017 LOOKING FORWARD TO K-FCV Building on the success and lessons learned from implementation of the KTF’s first phase, a second phase of partnership between the Republic of Korea and the WBG has been initiated. The proposed Korea Trust Fund for Economic and Peace-Building Transitions – Phase 2 (K-FCV) aims to maximize the impact of the WBG engagement in FCV situations and address the challenges of fragility, conflicts, and violence, particularly in Asia and the Pacific. The experience of the first phase highlighted that transitions are dynamic processes where ill-managed efforts can stall progress and deteriorate gains made in peace and economic growth. Phase 2 is based on a more comprehensive understanding of ‘transition’ through a risk-based approach taking into account economic, social, political, and security dimensions and promoting stronger collaboration with humanitarian and peace actors. Three proposed areas of focus under the K-FCV align with WBG priorities for FCV and leverage Korea’s comparative advantage from its technical expertise and geographic location: (i) operational support for conflict sensitive strategies and operations; (ii) innovative engagements for development in FCV; and (iii) management of crisis risk. Under each area, the K-FCV aims to support both recipient and bank-executed activities. To operationalize the recommendations from the UN-WB flagship study Pathways to Peace, K-FCV will place a premium on risk-based and prevention approaches. In general, the K-FCV will continue to support efforts to innovate and pilot new approaches that would not be easily financed through IDA or IBRD. In its second phase, the K-FCV will provide implementation and strategic support to WBG’s country team with an emphasis in Asia and the Pacific. FCV staff based within the WBG Korea Office will ensure multi-sectoral collaboration in risk monitoring, strategies and analysis, and support country teams and sector units in the region operating in FCV situations. Moreover, the K-FCV will further expand collaboration with Korean institutions and experts to maximize development impact in FCV affected countries. Korea’s strong ICT expertise will be leveraged to engineer innovative solutions in addressing FCV issues. Such an approach is aligned with Korea’s 2017 ODA Strategy for Supporting Fragile Countries. Despite the enormous challenges that threaten sustainable development in the coming years, Korea and the WBG’s sustained engagement through the K-FCV remains an important marker of effective collaboration in the effort to prevent and respond to fragility, conflict, and violence around the world. | 45 ANNEXES 46 | Korea Trust Fund Annual Report 2017 Annex 1: Statement of Receipts, Disbursement and Fund Balance Note 2017 2016 2009-2015 Total Expressed in US$ Opening Balance 1 $8,698,926.76 $490,000 $0.00 - Receipts Donor 2 $5,000,000.00 $0.00 $23,827,987.51 $28,827,987.51 Contributions Net Investment 3 $89,626.73 $94,322.28 $466,218.48 $650,167.49 and Other Income Total Receipts $5,089,626.73 $94,322.28 $24,294,205.99 $29,478,155.00 Disbursements Grant 4 $4,073,183.67 $4,023,553.87 $11,189,487.89 $19,286,225.43 Disbursements of which Program 5 $60,833.76 $53,878.31 $563,180.46 $677,892.53 Management World Bank 6 $0.00 $0.00 $476,559.75 $476,559.75 Administration Fee Total $4,073,183.67 $4,023,553.87 $11,666,047.64 $19,762,785.18 Disbursements Ending Balance $9,715,369.82 $8,698,926.76 $12,628,158.35 - Less: Committed 7 $3,488,949.96 - - - Funds (Active Grants) Fund Balance 8 $6,226,419.86 - - - (Available for New Programming) Pipeline of 9 $5,000,000.00 Operational Activities (first quarter of 2018) Note 1 : Reporting Basis Reporting period used in this report is the calendar year 2017. Note 2 : Donor Contributions The Korea Trust Fund for Economic and Peace-building Transitions (Fund) has received US$5 million in the calendar year ending December 31, 2017. This contribution represents the first installment of a total of $15 million pledged by the Republic of Korea over a three- year period under the Agreement between the Republic of Korea acting through the Ministry of Strategy and Finance and the International Bank for Reconstruction and Development and the international Development Association concerning Phase-2 of this Fund. Since it was established in 2009, the Republic of Korea has contributed US$28,827,987 equivalent to the Fund. Note 3 : Investments and Other Incomes Net investments and other incomes in the amount of ~US$89,627 for the calendar year 2017 consists of the Fund’s share in the interest income earned by the World Bank’s trust fund portfolio including realized gains/losses from sale of securities and other income. The received income in the calendar year 2017 is superior to the Fund’s annual program management costs and administration fee, i.e. Donor contributions have been used for financing of operational activities only. | 47 Note 4 : Disbursement for the Fund’s Operational Activities Cumulative disbursements to the KTF grants in the amount of US$19,286,225 were made since the establishment of the Fund, out of which ~US$4,073,184 in the calendar year 2017. The following table provides details of the grant distribution and disbursements by region. Region Number of Share, % Disbursed Share, % Grants ($ million) East Asia and Pacific 16 38 9.6 49.5 Africa 9 21 3.6 18.6 South Asia 4 10 1.7 8.8 Latin America and Caribbean 2 5 .8 4.1 Europe and Central Asia 4 10 1.1 5.7 Middle East and North Africa 1 2 .4 2.1 Global 6 14 2.2 11.3 42 100 19.4 100.0 Note 5 : Program Management Disbursement The cost of the Fund program management for the calendar year 2017 were in the amount of ~US$60,834. This cost was fully covered by investment income, i.e. donor contributions were used for operational activities only. The cost of the Fund program management in the calendar year 2017 is lower than annual average of ~US$75,000 since the Fund inception. The following table provides details of expenses for the Fund program management. Expense categories 2017 2016 2009-15 Cumulative disbursements, US$ Staff costs 38,812.72 30,741.42 382,062.17 451,616.31 Consultant fees 0.00 3,584.88 38,021.73 41,606.61 Travel expenses 22,021.24 5,912.21 107,299.25 135,232.70 Other expenses 0.00 13,639.80 35,797.31 49,437.11 60,833.96 53,878.31 563,180.46 677,892.73 Staff costs include salaries and benefits for SPF Secretariat’s staff. Other expenses incude overhead expenses, contractual services, e.g. editing, graphic design, translation, publising and printing, represenation and hospitality. Note 6 : Administration Fee The World Bank administration fee covers indirect costs related to corporate services provided in support of operational work. Indirect costs include the cost of institution-wide services such as human resources, information technologies, office space services, etc. The World Bank administration fee is not specific to the Korea Trust Fund for Economic and Peace-building Transitions but applies to all trust funds administered by the World Bank. No administration fee was charged in the calendar year 2017 as under the New Cost Recovery Model of the World Bank the administration fee is deducted at the disbursing fund level. This means that administration fee is not deducted at the time of receipt of contribution into the trust fund as it used to be done before 2017. No administration fee was charged in the calendar year 2016 as there were no new contributions to the Fund in that year. 48 | Korea Trust Fund Annual Report 2017 Note 7 : Committed Funds Commitments in the amount of US$3,488,950 are outstanding as of December 31, 2017. These are the remaining balances (funds committed but not disbursed yet) of the grants that the Fund has approved to program management and operational activities, i.e. active grants. Note 8 : Fund Balance Fund balance in the amount of US$6,226,420 is outstanding as of December 31, 2017 and can be used to finance new operational activities and program management. Note 9 : Pipeline of Operational Activities The estimated pipeline of operational activities for the first quarter of the calendar year 2015 amounts to US$5,000,000. Annex 2: All Grants Active Grants Country & Project Title Start Date Development Objective Grant Amount EAP Myanmar: Aug. 2013 Enable the Myanmar Peace Center to $2,954,973 Support to the generate an evidence base that improves Myanmar Peace Process both national decision-making and development partner interventions in support of the peace process. Thailand: Aug. 2013 Contribute to building confidence $490,000 Expanding Community between communities and sub-district Approaches in Conflict authorities in southern Thailand through Situations participatory local development approaches and capacity building. Thailand: Dec. 2017 Improve state-citizen relationships $495,000 Strengthening through demonstrating the feasibility Confidence-Building and value of participatory local Measures in Subnational development approaches and supporting Conflict institutional capacity-building of civil society networks and organizations, by (i) providing knowledge and evidence on peace-building approaches, and (ii) fostering constructive dialogue between the state and non-state actors. Philippines: Jul. 2016 Support the Government and other $544,000 Bangsamoro development partners in establishing of a Conflict Monitoring monitoring system for violent conflicts with System a view to inform plans, policies and programs in Bangsamoro. Timor-Leste: Jul. 2016 Provide just in time advice for improving $348,000 Domestic Revenue the tax regulatory framework and provide Mobilization preliminary capacity building in support of the government domestic revenue reform program EAP TOTAL $4,831,973 AFR AFR: Aug. 2015 Enhance monitoring and evaluation $375,000 Initiative on Pastoralism systems and knowledge on the link and Stability in the Sahel between pastoralism development and the Horn of Africa and stability for regional organizations and programs. | 49 IFC-KST Private Sector Dec. 2016 Examine the effectiveness of private sector $150,000 Development Study interventions in different fragile situations in Africa with a focus on the effective sequencing with a view to understand which development strategies work in complex fragile situations and which don’t and help inform future interventions. AFR TOTAL $525,000 SAR Pakistan: Feb. 2017 To support the civic inclusion and $733,900 Social and Economic economic empowerment of young empowerment of youth men and women in Khyber Pakhtunkhwa through ICT-based (KP), Pakistan, through the use of ICT solutions in Khyber based solutions. Pakhtunkhwa Western Balkans: Oct. 2017 Support a review of the rules-based $250,000 Strengthening Fiscal fiscal framework in the region as well Institutions to Build as generate and share knowledge on Resilience approaches to designing fiscal rules and building fiscal institutions to help address economic fragility. MENA Middle East and May 2014 Design and implement citizen $450,000 North Africa Citizen engagement activities in the region, Engagement which are tailored to particular conflict and post-conflict contexts. GLOBAL Learning on SGBV Mar. 2014 Deepen client and Bank knowledge on $444,000 in Operations addressing Sexual and Gender Based Violence (SGBV) in Fragile and Post- Conflict situations. Dissemination of Study Jul. 2016 Publish and disseminate a completed $26,000 on Rebuilding Public comparative study with a particular focus Services in Post-Conflict on dissemination to Korean audiences. Other Regions (SAR, ECA, MENA, Global) Total $1,903,900 Closed Grants Country & Duration Results Achieved Grant Project Title Amount EAP Indonesia: Dec. 2011 – Increased capacity of Indonesia’s institutions $2,079,258 National Violence Apr. 2015 to better use data in policy planning. The Monitoring project supported data collection, coding, web System (NVMS) development, as well as technical assistance to the Coordinating Ministry to use the data to inform Indonesia: Mar. 2014 - policy responses. Habibie Center, an Indonesian National Violence May 2015 think tank, tasked with producing data based Monitoring analytical work was given technical support. System (Additional As result, the NVMS has been validated as an Financing) effective and accurate violence response tool. The NVMS holds over 200,000 data entries, covering all of Indonesia’s 34 provinces, and Government, academia and civil society are all using the NVMS data to improve national-level policy planning. 50 | Korea Trust Fund Annual Report 2017 Myanmar: Mar. 2014 – Developed a better evidence base on poverty $459,485 Improving the Apr. 2016 and living conditions in Myanmar that is accepted Evidence Base on and credible by all stakeholders, and used to Poverty through inform national decision-making in the transition Mixed Methods process through conducting Myanmar Poverty and Living Conditions Survey (MPLCS), a nationally representative household survey implemented by the World Bank together with a survey firm, in collaboration with the Ministry of National Planning and Economic Development. The project also supported analysis of existing poverty data in the country, as well as a qualitative field study of poverty, inequality, and mobility in Myanmar. Pacific Islands: Aug. 2013 – Increased capacity and strengthened government $494,661 Strengthening Mar. 2016 procurement and financial management systems; Local Capacity strengthened knowledge and application of and Project safeguards policies and documents; and partnered Implementation with civil society organizations to strengthen and improve social accountability through innovative on the ground technical support. This project provided direct support across 23 projects. A lessons-learned paper on strengthening capacity and building implementation in fragile and remote island states have been completed. Philippines: Nov. 2013 – Provided analytical and advisory support to help $469,924 Supporting Feb. 2016 build legitimate institutions in conflict affected Inclusive Peace in areas of the country. This included support in the the Bangsamoro development of draft Bangsamoro Basic Law, which is the key legal instrument to implement much of the Comprehensive Agreement on the Bangsamoro; and Bangsamoro Development Plan which is informing government budget and donor financing for conflict-affected Mindanao. The project also contributed to the design and operation of the Bangsamoro Conflict Monitoring System (BCMS), which is informing more conflict-sensitive development programming; and included major TA on the overall approach to combatant transition, utilizing a community-based reintegration approach. Philippines: Oct. 2014 – Provided timely support through analytical work, $1,464,907 Supporting the Nov. 2017 policy advice and donor coordination focusing on foundations of citizen security, justice, social programs and jobs, sustainable peace and helped build credibility and relationships of in Mindanao trust with clients. The project outputs included the Mindanao Jobs Report, which will inform the WB’s plans for a scale up on operations in Mindanao over the coming five years. The report has also been cited in the government’s new Strategic Framework for Peace and Development in Mindanao. Land Conflict in Mindanao study, supported by the project, was endorsed by the Transitional Justice and Reconciliation Commission and its key recommendations were included in the Commission’s report. | 51 Philippines: May 2015 - Provided support in creating the environment to $66,646 Islamic Finance May 2016 improving access to basic financial services, and, in and Financial particular Islamic financial services, in Bangsamoro Inclusion on as part of the broader effort to stimulate Bangsamoro growth, jobs and development in the region. The project built significant skills and knowledge on an issue of strategic importance for cultural recognition of Muslim Filipinos by (i) assessing the access to financial services and financial inclusion in Bangsamoro; (ii) providing assistance on the development of the legal framework for Islamic finance; and (iii) helping design of Islamic microfinance pilot for future possible implementation in ARMM/Bangsamoro. Project activities facilitated the counterparts’ commitment to the development of legal framework, and triggered the on-going discussions on the future support for improving access to finance in ARMM including Islamic microfinance. Timor-Leste: Apr. 2014 – Increased the capacity of the government, CSOs, $166,296 Support for Land Apr. 2016 and communities to develop and implement land Policy legislation in a fair, inclusive, and transparent way by supporting stakeholder and political economy analysis of community lands and implementing the Land Governance Assessment diagnostic tool. Support was also provided to the National Directorate for Land, Property, and Cadastral Services to implement the land law and identify options for the development of livelihood opportunities. EAP: Feb. 2014 – Contributed to improving effectiveness of $467,893 Developing Apr. 2016 World Bank efforts in fragile and conflict prone Tools for situations through supporting dialogues among Trauma-Sensitive development practitioners, mental health and Livelihood psychosocial experts, and researchers about how Interventions sensitivity to trauma and psychosocial well-being in East Asia can be integrated into projects. Online course was also developed to build capacity of development and humanitarian practitioners to design projects that are responsive to psychosocial and mental health needs, and in turn, contribute to improved outcomes for projects. EAP: Oct. 2014 – Consolidated lessons from three existing violence $472,305 Regional Jun. 2016 monitoring initiatives in Thailand, Indonesia and the Violence Philippines, and based on the synthesis of lessons Monitoring learned, a practical methodology toolkit has been Knowledge developed. The project supported methodological Exchange improvements and harmonization, established a network of violence monitoring practitioners, and provided technical solutions to inform WBG internal and external incorporation of conflict and violence monitoring in project and portfolio monitoring, program design and policy formulation. AFR Central Feb. 2014 – Generated important knowledge and learning, $417,680 African Republic: Jun. 2016 which is enabling the improvement of World Strategic Early Bank operations in CAR. The Labor-Intensive Response Public Works knowledge exchange provided direct operational and strategic support to the restructuring of two ongoing WB projects. KTF support has fed into the preparation of the WB’s Country Engagement Note to support CAR’s fragile transition and define the WB’s priority areas of engagement. KTF support also led to the launch of the US$31 million multi-donor rapid employment program that delivers 10,000 jobs. 52 | Korea Trust Fund Annual Report 2017 Great Lakes Jun. 2014 – Provided concrete, pragmatic support to Great $338,479 Region: Feb. 2017 Lakes programs and strategies resulting in some Promoting Peace significant adaptations of projects, to not only and Stability be sensitive to conflict but address the causes of through violence. The project helped to (i) design a US$35 Development million component on conflict transformation and land management under the DRC-Burundi agriculture program as well as identify peacebuilders and spoilers inside agricultural value chains that will be engaged with through the program; (ii) inform the cross-border trade project by a study of vulnerabilities and sources of resilience of actors involved in cross-border trade flows between DRC, Uganda, Rwanda and Burundi; (iv) identify peace and security-related indicators that will be collected by the regional M&E project and all GLI programs will be linked to this framework, thereby identifying aggregate progress; (v) inform the Performance Learning Review for DRC through an extensive forward-looking risk assessment for the eastern provinces, which will influence the design of the upcoming Country Partnership Framework; and (vi) identify priority axis and communities along which the STEP (early recovery) and displacement projects in DRC will work. Liberia: Nov. 2013 – Assisted the Liberian Government to mitigate the $480,623 Citizen Oct. 2015 potential conflict arising from land and natural Engagement for resource management. The project also supported Fair, Equitable the drafting of recommendations for government and Durable to improve citizen engagement as well as specific Land and NRM inputs to the proposed Liberia Land Administration Project regarding land acquisition processes. Mali: Nov. 2013 – The project allowed the WBG to engage more $473,586 Immediate Oct. 2015 actively with the government about the post-conflict Post-Conflict response. It supported an assessment of needs Recovery Support and priorities, and a monitoring system to assess Initiative progress on peace and development over time. The roll-out of the Joint Assessment Mission in 2015 was the first attempt to pilot the new framework and methodology for recovery and peace-building assessments. The experience in Mali has allowed the EU, UN, and WBG to further strengthen this frame work, which has since become a core tool in the international response to conflict. Sierra Leone: Apr. 2014 – Contributed to the design of a more conflict $471,862 Local Apr. 2016 sensitive mining sector in Sierra Leone, through Development the development of the overarching policy, and Partnerships addressing one of the sources of fragility identified for Mining in the 2016 SCD - control of mining resources by chiefs. The project provided technical assistance (TA) to a working group that produced a model Community Development Agreement (CDA) that the National Minerals Agency is now working with investors to adapt to particular contexts and implement. On-demand TA support was provided to support the adaptation and implementation of the CDA. The KTF support helped shaping the overall policy discussion on the governance of the minerals sector as well as the specific policy and implementation arrangements for community development agreements. | 53 South Sudan: Oct. 2013 – The project objectives were revised given the $442,757 Youth Apr. 2016 outbreak of conflict in South Sudan, which Employment rendered the originally planned labor market survey unfeasible and inadequate given the context of high fragility. Instead, impact evaluation of a cash grant for youth on their livelihoods, education and other socioeconomic indicators was conducted. The program was implemented in the least conflict-affected regions in South Sudan and entailed life-skill and business training as well as a grant of US$1,000 per beneficiary. The project contributed to more detailed knowledge of the youth and their labor situation in South Sudan. Sub-Saharan Oct. 2013 – Improved the knowledge base and quality of data $474,250 Africa: Mar. 2016 for informing employment policies and operations Jobs and Job in a subset of fragile and conflict states (FCS) Creation in in the Africa Region. Three country jobs reports Fragile and (Côte d’Ivoire, Sierra Leone, Liberia), as well as Conflict States presentation of findings from the research have already informed a range of analytical, operational and strategic activities in Côte d’Ivoire, Sierra Leone, and, to a less extent since the report has only recently been completed in Liberia. The activity informed or jump-started broader employment engagement in all three countries. SAR Afghanistan: May 2014 – Provided assessment on understanding the $390,662 Understanding May 2016 drivers of conflict across extractive industry the Drivers value chain which informs preparation of the of Peace and Afghanistan Extractives for Development (AE4D) Security in project. In addition, the grievance redress related Extractive work proved to be very useful in supporting the Industries Sector government meet its safeguard obligations under the Sustainable Development of Natural Resources Project. Under this component, 310 male and 237 female workers were trained on grievance redress mechanisms and conflict mitigation. SAR: Apr. 2014 – Generated knowledge on effective engagement $349,959 Framing Mar. 2015 strategies and approaches for delivering services Responses to and building effective institutions in low-capacity, State Fragility conflict-affected and fragile areas in South Asia. in SAR The project provided important contribution to knowledge about how subnational political settlements and elite bargains can affect service delivery outcomes. The outcomes of the research is being used to influence World Bank country and sector strategies, and aspects of the findings were integrated into the current Afghanistan Country Partnership Framework. Men as Agents Sep. 2013 – Contributed to the knowledge base for $389,835 of Change for Mar. 2015 programming and improving knowledge of Peace, and male gender issues in development. A Global Security symposium on Men, Peace, & Security: Agents of Knowledge Change was organized to bring together and to Product train 245 participants, many from fragile states, on issues related to men, peace and security. Follow- up research looked further at how job creation programs can be improved with a better focus on male gender issues through examining the links between male identity and employment and income generation for young people around the world. Furthermore, the grant contributed greatly to the development of the WEvolve campaign, in particular, its focus on understanding and responding to male gender issues. 54 | Korea Trust Fund Annual Report 2017 LAC Colombia: Mar. 2014 – Strengthened the Government capacity to make $387,302 Peace Process Dec. 2015 informed decisions for peace building policies, as Implementation well as implementation mechanisms through: (i) Support the development of a framework for understanding key aspects of the peace-building exercise in Colombia in the context of societal transition from armed conflict to sustainable peace; (ii) a technical review of the reintegration policy and approach in Colombia to inform the preparation of the institutional structure for a potential Disarmament, Demobilization, and Reintegration program for FARC ex-combatants; and (iii) a study on crime and violence in the aftermath of an armed-conflict and how public policy can effectively address post- conflict violence. In addition, this project increased the understanding of the role of civil society in peace building processes, as well as of building trust in state institutions through: (i) a study analyzing local governability in conflict affected zones, and (ii) the development of a methodological guideline for carrying out communication programs for building citizens’ trust in institutions in sub-national areas with low levels of state presence and affected by violence. The applied knowledge generated by the activities, supported the maintenance of a policy dialogue with the Government during the transitional period to peace and promoted the WB role as a trusted knowledge broker in peace and development interventions. Haiti: Oct. 2014 – Contributed to improving the effectiveness of $435,881 Political Economy Apr. 2016 the World Bank operations in both electricity and Analysis and education. The improved understanding of the Social stakeholders in the sector, their interests, and their Accountability impact on the sector has helped the electricity Pilot program in Haiti move toward alternative avenues for increasing access through renewables and off-grid solutions, which has resulted in two new energy projects focusing on those alternative approaches. In Education, the inspection analysis and net mapping of stakeholders has generated knowledge that sector teams are using to inform the TA on improving education quality. In addition, all the main activities under Social Accountability Pilot are being picked up and scaled up in a new education project under preparation to enhance the impact of the project on learning outcomes. ECA ECA: Jan. 2014 – The project contributed to improving capacity $483,760 Addressing Land May 2016 of governments (Bosnia & Herzegovina, Kosovo, and Conflict Georgia, South Africa, Colombia, Nepal, Kenya, Issues in Eastern and Ivory Coast) to provide inclusive and Europe and equitable land administration systems and/or land Central Asia restitution processes, sensitizing the governments to the special needs of vulnerable groups in FCV settings. The concept of land leasing program, social monitoring and vulnerability mapping, and door-to-door sensitization of women’s property rights were piloted, and were further developed to benefit the relevant WB land operations in ECA. | 55 Moldova/ Mar. 2014 – The project went through several iterations as $165,014 Transistria: Sep. 2017 adjustments were made to reflect political realities Knowledge for and align with demands from the Government Confidence of Moldova (GoM) and Transnistrian Authorities. Building It supported a series of workshops and capacity building events aimed at closing the knowledge gaps to support the confidence building process including pilot programs with communities on both banks of the Nistru River. The project team also produced a note on strategic and operational challenges of working in the Transistria Region, Republic of Moldova which highlights a particular challenge of the shifting power relations within the authorities of Transistria and negotiating with the sovereign government on a leeway to work with the break-away regions of the country. This note provides a valuable guidance for the WB teams on working in conditions of frozen conflicts. Kyrgyz Apr. 2014 – The project (i) enhanced understanding of $461,003 Republic & Apr. 2016 the grievance redress mechanisms (GRM) as a Tajikistan: means for operations to respond to beneficiary Citizen feedback in Central Asia; (ii) developed a citizen Engagement for engagement Country Roadmap in Kyrgyz Better State- Republic; (iii) improved the quality of design Society Relations of citizen engagement in IPF operations; (iv) developed innovative tools for citizen engagement in the education and energy sectors in Kyrgyz Republic. The outcomes of this grant leveraged significant additional funds for sector activity – to introduce new levels of citizen engagement in the education sector, through a partnership between the World Bank (US$3 million) and civil society (the Aga Khan Foundation, US$0.5 million). In addition, the project resulted in a commitment from the WB Country Management Unit in FY17 to continue the financing of the mainstreaming of CE, as well as the expansion of citizen engagement work to neighboring countries (Kazakhstan and Uzbekistan). The piloting of the Country Roadmap for CE in Kyrgyz Republic has been taken up by several countries across the ECA region and has defined an instrument for defining country specific objectives, priorities and standards. GLOBAL Designing and Oct. 2013 – The project contributed a wealth of relevant $408,628 Implementing Apr. 2016 knowledge on forced displacement across the globe Displacement and resulted in the uptake of recommendations in Sensitive major WB initiatives and operations, particularly in Development the DRC and Great Lakes. This includes informing Interventions the design of a US$20 million IDA operation on “Displaced Persons and Border Communities in Africa.” The household survey in Mali has become a precedent for WBG work on forced displacement, incorporating innovative technological methods such as mobile phone surveys. The study in Afghanistan has become a basis for increased investments by the CMU in displacement operations in that country. Studies funded by this grant have also been incorporated in government discussions to ultimately design policies to address the development challenge of forced displacement, particularly in the regional initiative in the Great Lakes. 56 | Korea Trust Fund Annual Report 2017 Korea- Feb. 2016 – Supported knowledge exchange on rural $74,429 Afghanistan-FCS May 2017 development between Afghanistan, Korea and Countries four FCS countries to conceptualize potential Knowledge approaches to improving community driven Exchange on Rural development (CDD) efforts based on the Development implementation experiences and results of the Saemaul Undong program. The knowledge- exchange event held in June 2016 gathered over 20 participants from the participating countries and representatives of 9 Korean institutions and laid a basis for continuing dialogue between at least 3 of the participating countries (Afghanistan, Myanmar, and Nepal). The project also supported a stocktaking of CDD in FCV contexts with a focus on four of the participating programs. Risk Factors of Aug. 2016 – Provided an empirical analysis of the resilience $259,987 Violent Conflict Sep. 2017 factors to violent conflicts, which is essential to and Deviation analyze policies and programs that can effectively from Expected support prevention of conflicts. This analysis fed Outcome into the flagship study on development intervention for prevention of violent conflicts. The study was informed by extensive regional consultations in Europe, Africa, Middle East and North Africa, and South-East Asia. It makes a case for placing prevention at the center of development efforts, and ends with recommendations for national governments, international and other relevant actors, and have already begun to influence the global policy debate on prevention. Improving Jan. 2014 – Provided capacity building to environmental $263,118 Professional and Dec. 2015 regulators from FCV-affected countries and Regulatory produced a toolkit with practical tips to improve Safeguards professional and regulatory safeguards capacity Capacity in FCS in FCS. Twenty fine environmental regulators from by Building Skills 10 FCV-affected countries (Burkina Faso, Central through African Republic, Kenya, Liberia, Madagascar, Mali, South-South Staff Mozambique, Nigeria, Sierra Leone, South Sudan Exchange and Sudan) were trained at a one-week intensive workshop consisting of presentations, discussions, participatory exercises, field trips and country case studies. The materials processed and harvested during the workshop were captured in the toolkit that was produced. Surmounting May 2015 – The project provided a deeper insight to the $84,288 Conflict and Apr. 2016 intersection of macroeconomics and political science Fragility approaches to conflict by supporting an analytical study which examined the factors that allow countries to recover (economically) from conflict. The study revealed that economic growth before and after conflict seems, on average, only marginally lower than in non-conflict countries, and that cycles of violence are the single most important reason for the lack of long-term development in these countries. The study described political violence as a leading cause of extreme volatility and highlighted corollaries of this in more detail through looking at political exclusion – political institutions, executive constraints – literature on trust on conflict. | 57 Annex 3: K-FCV Results Framework Unit of Baseline End Frequency Data Source/ Responsibility Measure (K-FCV-1) Target Methodology for Data (2020) Collection DO-level Results Indicator Indicator A: Percentage 0 70 Annual Letters FCV Group Ministerial-level management, acknowledgement with CMUs letter of the impact of the K-FCV at grant completion Indicator B: K-FCV Percentage 62 75 Annual Portfolio and K-FCV grants allocated to Project data Secretariat countries in Asia and the Pacific (in $ volume) Indicator C: Number 8 20 Annual Project data K-FCV Engagement Secretariat with international and local Non- Governmental Organizations Intermediate Results Indicators Area 1: Operational support for FCV-sensitive strategies and operations Indicator 1.1: Number 6 15 Annual Portfolio and K-FCV WB lending US$ million 180 750 Project data Secretariat, operations directly Beneficiaries 967,343 XXX with CMUs and supported through GPs preparation, implementation and/or supervision Indicator 1.2: Number 60 450 Annual FCV FCV Group Operational facetime management, missions of FCV index with WB HR staff from/ through/ to Korea (days) Area 2: Innovative engagements for development in FCV Indicator 2.1: Number 0 10 Annual Presentation K-FCV WB operations at annual Secretariat, building on event with GPs innovative ICT technologies for preparation, implementation and/or supervision Indicator 2.2: Percentage 0 60 Annual MoU K-FCV Korean actors Secretariat, providing with GPs technical advice for the above WB operations Area 3. Management of Crisis Risk Indicator 3.1: Number 1 10 Annual Grant K-FCV Crisis management reports; GCMP Secretariat, tools designed and/ report with GCMP or their enhanced application Indicator 3.2: Number 0 1 Annual WB-KO report GCMP Asia/Pacific focal Secretariat, point for the GCMP with WB-KO based in WB Korea CMU Office (WB-KO) 58 | Korea Trust Fund Annual Report 2017