CATALYST FOR PROGRESS THE JAPAN POLICY AND HUMAN RESOURCES DEVELOPMENT FUND CREDITS Cover Photos Bottom Left and center: Arne Hoel; Top Right: Scott Wallace Design The Word Express CATALYST FOR PROGRESS THE JAPAN POLICY AND HUMAN RESOURCES DEVELOPMENT FUND This report has been prepared by a team led by Wahida Huq, Angela Gentile, Augustina Nikolova and Milagros Reyes. The report benefitted from the guidance provided by Michael Koch and Roberto Tarallo. David Gray and Jane Kirby-Zaki provided editorial assistance. Ann Moline provided editorial leadership. The design of the report was done by Word Express. CONTENTS MESSAGE FROM THE GOVERNMENT OF JAPAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . v FOREWORD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii 1. INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2.  BRIEF HISTORY OF THE POLICY AND HUMAN RESOURCES DEVELOPMENT FUND. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 POLICY AND HUMAN RESOURCES DEVELOPMENT FUND TIMELINE . . . . . . . . . . . . . . . 6 3.   LEADERSHIP, EARLY ACTION, AND RAPID RESPONSE. . . . . . . . . . . . . . . . . . . . . . 9 RESPONDING TO CRISIS, CONFLICT, AND DISASTER. . . . . . . . . . . . . . . . . . . . . . . . . . . 10 ADDRESSING CLIMATE CHANGE, PROTECTING ECOSYSTEMS. . . . . . . . . . . . . . . . . . . 13 4.  PEOPLE, PARTNERSHIP, AND KNOWLEDGE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 CREATING OPPORTUNITY FOR THE POOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 PARTNERING FOR THE PUBLIC GOOD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 NURTURING YOUNG MINDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 EDUCATING NEW GENERATIONS OF DEVELOPMENT LEADERS. . . . . . . . . . . . . . . . . . 23 5.  NEW CHALLENGES IN A CHANGING WORLD . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 IMPROVING AGRICULTURAL PRODUCTIVITY IN AFRICA. . . . . . . . . . . . . . . . . . . . . . . . . 26 REDUCING DISASTER RISKS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 BREAKING DOWN BARRIERS FOR PEOPLE WITH DISABILITIES . . . . . . . . . . . . . . . . . . . 30 6.  LOOKING AHEAD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 MESSAGE FROM THE GOVERNMENT OF JAPAN The government of Japan initiated the Policy and Human Resources Fund nearly 25 years ago as a demonstra- tion of its support for and commitment to help reduce poverty in countries around the globe in partnership with the World Bank Group. It was established to help developing nations build the skills, knowledge, and human resource capacity required to implement sound policies, projects, and actions that reduce poverty, protect the environment, and lead to sustainable improvements in people’s lives. Through the years, the fund has provided financial resources for eligible countries to access the expert guidance needed to properly plan and prepare complex projects—roads, irrigation networks, wastewater treatment plants, community facilities and the like. Backed by strong analysis, quality design and detailed implementation plans, these projects were subsequently able to qualify for funding from the World Bank. Projects supported by PHRD have created better transport and communication systems, helped businesses get their goods to market more rapidly, and improved access to clean water, better sanitation and basic health services for women and the poor. Other projects supported by the fund have provided children in remote corners of the globe with improved learning opportunities in modern school facilities. A second facet of the PHRD approach has focused on giving professionals from developing countries access to best-in-class global knowledge—allowing them to work alongside international experts, obtain graduate degrees at leading universities, and share experiences and best practices in an electronically-enabled global network. They have been equipped to take the lead in designing future projects and development policies to benefit their countries. The PHRD Fund reflects Japan’s environmental, social, and educational priorities, by supporting initiatives that help developing countries address their challenges. It also reflects Japan’s continued confidence in its partner- ship with the World Bank: while Japan is the single donor to this trust fund, the Bank has been the careful manager and steward of the resources, in accordance with its poverty alleviation and economic growth strategy. Currently, the fund is focused on several priorities based on the strategic alignment between the World Bank and Japanese government. These priorities include: • Improving agricultural productivity in Africa to address food security and food price volatility • Reducing disaster risks by improving disaster preparedness • Breaking down barriers for people with disabilities so they are less isolated and more connected to their communities v CATALYST FOR PROGRESS As uncertainty and fiscal constraint continue to characterize the global financial environment, trust funds have become increasingly important vehicles for many countries to realize their development potential. Even as development needs change, and new challenges arise, the flexibility of the PHRD Fund will help ensure that it remains a lynchpin of the Bank’s trust-funded activity. On behalf of the government of Japan, I am honored to present this publication, which showcases the impact and lasting value of the PHRD Fund. Hideaki Suzuki World Bank Executive Director for Japan October 2012 vi FOREWORD The World Bank and Japan have a long, shared history of development cooperation. As one of the most important donors to trust funds managed by the Bank today, Japan has proven itself a steadfast partner, as well as a financial and intellectual backer of development solutions, committed to the joint fight against poverty. Nearly 25 years ago, Japan stepped forward with a ground-breaking idea—to establish a flexible fund that would enable the World Bank to expand the reach and impact of its development work. This move came well before trust funds were common channels for donors to tackle poverty. The Japan Policy and Human Resource Development (PHRD) Fund was created to help build the capacity of developing countries to meet development challenges by strengthening their ability to prepare projects and mobilize funding, to respond to crises by taking early action, and to educate a new generation of leaders. The fund’s work extends to supporting countries’ efforts to deal with climate change and diversify agricul- ture to reduce hunger and the impact of the rising food prices. It also extends to lending Japan’s world-class expertise, academic leadership, and technical skills in the area of disaster preparedness to build a global knowledge base. Through PHRD, Japan today continues to play a leadership role on the global and regional stage, providing technical assistance and strengthening institutions in more than 140 developing countries. The fund’s flex- ibility has enabled it to evolve as issues change and new needs arise, giving it an enduring relevance, and making it an important instrument of support for the World Bank’s quest to reduce poverty. The World Bank gratefully acknowledges the contributions of Japan through its unwavering support of the PHRD Fund over the past 25 years. Axel van Trotsenburg Vice President Concessional Finance and Global Partnerships World Bank vii 1. INTRODUCTION T he Policy and Human Resources Development Fund is a trust fund generously supported by THE PHRD FUND ENHANCES the government of Japan and managed by the JAPAN’S LEADERSHIP ROLE ON World Bank. It provides grants to pay for technical THE GLOBAL AND REGIONAL expertise, guidance, research, education, and assis- STAGE tance in support of the World Bank’s multi-faceted efforts to reduce poverty, improve lives, and spur Tokyo International Conference on African economic growth in developing countries. Development, 1993 As part of efforts to reduce poverty and bring growth to Africa, Japan launched the TICAD Established nearly 25 years ago to help developing as a forum for high-level policy dialogue every countries strengthen human resources and institu- five years. Discussion in this forum in 1998 led tional capacity, formulate sound development poli- to the creation of the PHRD Africa Agricultural cies, and manage crises, this first-of-its-kind trust Productivity Program. fund has enabled progress on multiple development fronts. It set a precedent that other donor nations UN Framework Convention on Climate Change have followed, as they, too, began to set up trust and the Kyoto Protocol, 1997 The PHRD Fund’s climate change program was funds for poverty reduction efforts managed by the launched in 2001, to encourage low- and middle- World Bank. income nation participation in the protocol at a time when expectations for entry and adherence From the beginning, the PHRD Fund has represented were at an all-time low. quality in development operations. With its focus on funding technical assistance for World Bank bor- The Hyogo Framework for Action, 2005–2015 rower member nations so they can prepare strong This broad global framework to address disaster projects and interventions aimed at addressing risk mitigation is supported by the PHRD Fund. It led to the establishment of the Global Fund their critical needs, the fund has helped countries for Disaster Risk and Recovery, a trust fund man- access billions in development finance from the aged by the World Bank and supported by the World Bank and other institutions. In fact, by fund- PHRD Fund to address disaster vulnerabilities ing such assistance, the PHRD Fund has facilitated in Asian nations. the financing of more than 30 percent of all World Bank-funded operations in developing countries in the years since its inception. 1 CATALYST FOR PROGRESS PHRD grants have strengthened World Bank-financed forged strong—and continuing—bonds between projects at entry and during implementation, and Japan and the World Bank. supported climate change initiatives and preserva- tion of critical ecosystems. They have financed While the PHRD Fund has evolved through the forward-looking research, contributed to the training years, emphasis remains on partnership, setting of thousands of development professionals, helped examples and sharing knowledge, skills, tools, and disseminate data and learning across the globe, and best practices, so others can replicate what works. 2 2.  BRIEF HISTORY OF THE POLICY AND HUMAN RESOURCES DEVELOPMENT FUND The PHRD Fund was a truly visionary idea; a pragmatic way to build capacity of the Bank’s borrowing member countries and the largest early experiment in World Bank management of donor-funded grant facilities. This fund—and the lessons learned during its early opera- tional years—helped pave the way for the World Bank’s future trust fund arrangements.” Kenichi Ohashi, PHRD Fund’s first administrator and former World Bank Country Director for Ethiopia and Nepal T he idea for the PHRD Fund emerged in the outside experts to help with the detailed planning late 1980s as the government of Japan saw and preparation stages, some worthy projects were that critical development needs in low and not moving forward. middle-income countries were going unmet. This was due to a lack of capacity to design and imple- ‘A visionary idea’ with a novel, ment large-scale projects, particularly in areas such pragmatic approach as infrastructure development—construction of To address the situation, Koji Kashiwaya, then- new roads, bridges, irrigation, hospitals, schools, Deputy Director-General of the International Finance community centers and the like that contribute to Bureau of Japan’s Ministry of Finance, proposed a lasting quality of life improvements for people in novel arrangement: a trust fund financed by the developing countries. government of Japan that would provide grants to support quality project preparation, implementa- This represented a serious gap, because the tion and other knowledge services. The fund also ability to secure World Bank financing for such would enable training for development personnel in complex projects has always depended on the countries so they could build up their technical and viability of the implementation plans, requiring management skills, and provide funding to educate proposals anchored by strong analytical design. the next generation of development leaders, through But since many of the Bank’s low- and middle- a graduate scholarship program. income member nations did not have the human resources capabilities or the funding to bring in 3 CATALYST FOR PROGRESS “This was a truly visionary idea at the time,” recalls Kenichi Ohashi, the PHRD Fund’s first administra- EXPANDING ACCESS TO FINANCE tor and former World Bank Country Director for IN VIETNAM Ethiopia and Nepal. The notion of grant funding to support technical assistance that would not be PHRD grants fund preparation of bank modern- tied to a specific theme, region, or project was ization project new—there were no other such funding facilities For Hanoi resident Nguyen Guoc Cuong, doing business is a lot easier today, thanks to an exten- in place. sive modernization of Vietnam’s banking system. Ohashi, who was involved in the details of setting “Now it is very easy for me to transfer money to up the PHRD Fund, says that the Bank’s leader- my business partner within a day or receive money ship realized the strong potential benefit such an from them in 15 to 30 minutes,” he says. arrangement could bring: by supporting quality The recently completed $112 million World Bank- preparation of complex and far-reaching projects, financed project, involving complex technology it could enable tangible progress on some of the upgrades as well as structural changes to the world’s most difficult development challenges. nation’s banking system, was made possible through the support of the PHRD Fund. The PHRD Projects start strong with quality project preparation grant enabled the technical preparation assistance needed to design this IT-heavy project The rationale behind the focus on project prepa- in a country with limited capacity to handle such ration was clear: If projects aren’t designed well, technology-driven efforts. implementation will be problematic and the desired objectives will not be achieved. the skills of local project teams and government This support has proved critical. The technical agencies. This multiplier effect means that the assistance provided through project preparation countries themselves can design strong projects grants has helped countries access Bank funding for that can leverage other funding sources, in addition projects across the development spectrum—health, to the World Bank. education, economic empowerment, infrastructure, social protection, climate change, environment and Examples of the more than 3,000 projects—across technology, among others. the regions, sectors, and country-led priorities— enabled by PHRD project preparation grants A look at the numbers quantifies the fund’s impact. include: More than 30 percent of Bank-funded projects around the world started out as proposals pre- • Andhra Pradesh Drought Adaptation Initia- pared with technical assistance paid for through tive: The project helped mitigate devastating PHRD preparation grants, with an average value effects of drought in this region of India that is of $650,000 per grant. home to 35 million mostly poor people. • Chad Urban Development Project: A PHRD Through the years, these grants have strengthened project preparation grant resulted in a $15 the quality of development operations in more than million World Bank grant to improve living 140 countries, resulting in deeper development conditions for the urban poor in N’Djamena, impact and stronger results, while helping to build Moundou, Sarh and Abéché. 4 Brief History of the Policy and Human Resources Development Fund • Health Modernization Project in Armenia: among the first with a financial response. “For Now, nearly 2.5 million citizens have better years, the PHRD Fund was the only such fund access to modernized facilities and quality health providing support as the conflict in Bosnia wound care provided by retrained physicians and nurses. down, making available critical funding for large • Tajikistan Post-Conflict Emergency Recon- projects,” Shah notes. struction Project: Following the breakup of the former Soviet Union, this targeted program of As other issues emerged on the world stage, the physical and social infrastructure reconstruction PHRD Fund continued this role, becoming one of and emergency support for farmers helped rein- the earliest supporters of efforts to address climate tegrate local citizens into a stabilizing national change. economy. Meanwhile, the fund continued to refine its approach With little precedent on which to base the effort, the to enhance effectiveness. For instance, enhance- government of Japan and the World Bank learned ments in the late 1990s increased governance and by doing, altering the approach along the way based control, with strengthened procurement and financial on lessons learned. management, standardization of the grant funding process, and introduction of independent review Flexibility allows rapid action and and evaluation. response to crisis The PHRD Fund’s structure has proven a significant Enduring relevance as needs change advantage in addressing critical global issues that Over time, development needs and priorities have arise, often without warning. “The PHRD Fund changed. Today, the PHRD Fund has phased out the was designed as a very flexible instrument, so it funding of preparation grants, due in part to its own also could support free-standing technical assis- success—the prioritized focus on capacity building has tance not connected to any other project funding,” given more developing country borrowers the skills explains Sajjad Shah, the fund’s administrator needed to take the lead in preparing quality projects. from 1999–2004. “This was a remarkable feature,” In addition, the lessons learned and knowledge shared enabling first-mover support for pressing issues and through the years of the fund’s experience have set crises of the day, he says. the course for new Bank partnerships and trust funds, disbursing some $4 billion per year currently. Case-in-point: in the aftermath of the mid-1990s conflict that shattered lives, shuttered businesses, Today, the PHRD Fund focuses on addressing several and decimated economies following the breakup emerging development priorities, including: of the former Yugoslavia, the PHRD Fund was • Food security in Africa • Research on rice productivity enhancement Through the PHRD Fund, Japan was among the • Disaster preparedness and risk insurance first to fund: financing • Post-conflict reconstruction and development • Critical ecosystems protection in Bosnia • Reduction of deforestation and forest degradation • Asian financial crisis response • Inclusionary development for people with • Response to avian and human influenza disabilities pandemics • Research on HIV/AIDS vaccines 5 CATALYST FOR PROGRESS The fund also supports other important develop- supporting governments as they structure transparent ment and growth-related initiatives, as determined and effective public financial management systems collaboratively by the government of Japan and to empowering local communities to identify their the World Bank. own development priorities. These initiatives also complement the World Bank’s country develop- Heart of the PHRD Fund: people and ment strategies. partnership In addition to the thematic focus, the fund provides On-going contributions in the people realm—including direct support for capacity building initiatives—from building local skills and capacity and educating new POLICY AND HUMAN RESOURCES DEVELOPMENT FUND TIMELINE 1996 Creation of the Japan Post-Conflict Fund; $80 million in contributions over five years 1988 Japan establishes the PHRD Fund with the Technical 1998 1999 Assistance Program The Miyazawa The Japan-World to provide grants for Initiative to address Bank Partnerships project preparation and country-specific Program established; project implementation; problems related to contributions through contributions for TA program the Asian financial crisis the years total $64 through the years total $1.7 including financial and million billion corporate sector reform; $28 million in grants 1989 approved in 2002 Launch of the Joint Japan/ World Bank Graduate Scholarship Program; contributions through the years total $261 million 2001 1999 1998 1996 1989 1988 2001 Through the PHRD Fund, Japan contributes $200 million over five years to the Highly Indebted Poor Countries Trust Fund for debt relief 6 Brief History of the Policy and Human Resources Development Fund generations of visionary development leaders through Indeed, a look at recent efforts makes it clear that the the Joint Japan/World Bank Graduate Scholarship PHRD Fund’s original objective—flexible, appropriate Program—are paying dividends in countless ways. and timely responses to help developing countries strengthen capacity, develop sound development Through the years, the fund’s emphasis on collabo- policies and manage crises—remains as relevant ration has created strong partnerships in develop- today as it was nearly 25 years ago. ment, extending to other global organizations and Japanese institutions as the fund supports efforts that promote progress and public welfare. 2002 A Multilateral Account set up to facilitate transfers from PHRD to other programs, including: • $10 million to the World Bank’s Poverty Reduction Support Program, 2002 • $50 million to the Public-Private Infrastructure Assis- tance Facility, 2000–2006 (www.ppiaf.org) 2008 • $20 million to InfoDev, 2003–2004 (www.infodev.org) Creation of the • $35 million to Critical Ecosystem Partnership Fund, Japan-Indonesia since 2003 (www.cepf.net) Scholarship Program • $12 million to Global Facility for Disaster Reduction with a $10 million and Recovery, since 2008 (www.gfdrr.org) contribution for 5 • $14 million to the Forest Carbon Partnership Facility, years since 2009 (www.forestcarbonpartnership.org) • $4 million to International AIDS Vaccine Initiative, since 2011, $10 million total commitment(www.iavi.org) 2010 2008 2004 2003 2010 2002 2004 Restructuring of the PHRD TA Program The PHRD Technical with $200 million indicative allocation Assistance Co-financing for 4 years, including: window is added to enable • $100 million for rice research additional capacity building and Africa rice productivity activities enhancement • $50 million for disaster reduction 2002 2003 and recovery in Asia • $40 million for disability and Creation of the PHRD Creation of the Cli- development Staff and Extended mate Change Initia- • $7 million for research on Term Consultant tives Grant Program establishing a risk financing facility Grant Program 7 3.   LEADERSHIP, EARLY ACTION, AND RAPID RESPONSE A s one of the World Bank’s major sources of the management and technical skills of government grant funding for country-executed technical officials and other development professionals. This assistance and capacity building initiatives, has enhanced country engagement in development the PHRD Fund’s efforts have wide-reaching and projects, and helped elevate the importance of creat- enduring impact. Project preparation grants have ing national development policies in countries such been a strategic instrument for providing technical as Ethiopia, India, Indonesia, and Vietnam. assistance to improve the quality of development projects, with one-third of these grants going to And in times of trouble, the PHRD Fund has stepped projects in low-income countries. up, providing concessional finance for countries in crisis. Over the years, approximately $163 million in For the first 20 years of the PHRD Fund’s existence, PHRD grants has gone towards crisis, conflict, and its technical assistance program served as the only disaster response, helping developing countries to source of un-tied grant funding for preparation and access nearly $4 billion in World Bank financing for implementation planning of important development recovery and crisis management efforts. projects. This program helped more than 140 nations leverage billions in World Bank funding to move for- As a reflection of Japan’s long tradition of leadership ward with critical operations that have led to sustain- on issues relating to the environment, PHRD climate able improvements in the quality of people’s lives: change grants offer direct access to best-in-class Japanese technology in the field of climate modeling • Infrastructure: schools, roads, bridges, water and adaptation science. The grants fund analytical and sewer, power preparation work and implementation of pilot projects, • Social services delivery: health, education, social leading to broader projects with deeper impacts. For protection for the poor example, PHRD-funded work on forest plantation • Public administration: public financial manage- models in Moldova, Albania and Honduras has led ment, public policy, governance to the creation of a reforestation methodology that • Access to credit, electricity, and technology has been replicated in other developing countries. • gricultural productivity, natural resources man- agement, and agri-business The multiplier effects of this work are evident, con- • Environment, bio-diversity, and climate change tributing to the global knowledge base and support- ing the mainstreaming of bio-diversity preservation The fund’s capacity building grants have helped and climate change-related issues into the world’s countries build institutional capabilities and improve development agenda. 9 CATALYST FOR PROGRESS RESPONDING TO CRISIS, CONFLICT, AND DISASTER Japan has faced its own share of challenges in the wake of crisis and disaster, from rebuilding a Photo credit: Simone D. McCourtie physically and emotionally devastated nation in the aftermath of World War II, to recovery from the Asian financial crisis of the 1990s and—most recently—the 2011 Sendai earthquake and tsunami. As a member of the world community, Japan brings to bear its first-hand experiences in facing tough situations, and a strong commitment to helping other nations in similar need. THE PHRD FUND’S CRISIS RESPONSE The PHRD Fund has contributed directly to work Fund contributes to post-conflict recovery on the ground in countries struggling to address While the world’s trouble spots may be troubled crisis, conflict or disaster, having contributed for different reasons, they share similarly complex approximately: challenges as they start to recover: severe lack of financial and human resources, destroyed physical • $45.02 million for post-conflict response and and institutional infrastructure, shortages of food, emergency reconstruction fuel, housing and other critical building blocks of • $69.8 million for natural disaster response and preparedness society, among others. • $35.8 million to address global health threats like HIV/AIDS and avian and human influenza Through the PHRD Fund, Japan has supported a • $106.3 million for food crisis response range of efforts aimed at helping countries recover. In addition to providing direct crisis response, the The PHRD Fund’s technical assistance program PHRD Fund has contributed more than $108 mil- financed activities that helped countries leverage lion in technical assistance crisis response, which additional funding for projects to address crisis, includes $80 million to the Japan Post-Conflict conflict, and disaster: Fund, established in 1996. Among the supported • More than 100 technical assistance grants activities: needs assessments for countries in the • Provided over $107 million for project prepa- aftermath of war so they can identify priorities to ration, implementation and analytical studies enable stabilization and a return to normalcy. These • Catalyzing over $3.9 billion in World Bank assessments have helped the World Bank strategi- project financing: cally target its assistance to the most critical needs • Disaster preparedness and mitigation of the affected country. • Earthquake recovery • Drought relief • Post-conflict reconstruction Post-conflict nations bolstered by this support include • Economic and social stabilization Bosnia and Herzegovina, Cambodia, Tajikistan, • Pandemic outbreak Rwanda, Timor Leste, Liberia, and Iraq, among others. 10 Leadership, Early Action, and Rapid Response THE PHRD FUND’S POST-CONFLICT SUPPORT HELPED REBUILD COUNTRIES AND LIVES • In Bosnia and Herzegovina, grants helped create 65,000 jobs, support 20,000 micro-entrepreneurs, rebuild homes for 9,400 displaced people, and co-finance reconstruction of transport system following a brutal, three- year ethnic conflict ending in 1995 that left an estimated 200,000 dead. Support also contributed to creation of micro-credit framework and built capacity of investment guarantee agency, while enabling reintegration of former combatants into a newly peaceful society. • In Liberia, grant funding contributed to the revitalization of this highly impoverished country—one of the world’s poorest—which ended years of civil war in the early 2000s and democratically elected a government in 2005. • In Rwanda, funding contributed to refugee resettlement and helped get power restored and clean water flow- ing again, in the aftermath of a devastating civil war during the mid-1990s that took the lives of an estimated 800,000 people and shattered the country; additional project preparation funding helped prepare education and health projects that later received World Bank financing. • In Timor Leste, the fund partnered with the World Bank’s Trust Fund for Timor Leste, providing $23.9 million over two years in block grants to local communities to rehabilitate and build basic infrastructure and restart economic activities, following a lengthy struggle for independence that displaced thousands and destroyed most of the newly sovereign state’s infrastructure. Efforts also supported the creation of democratically elected village councils to build accountable and participatory local institutions. • In Iraq, PHRD’s technical assistance program helped leverage $124.5 million in World Bank support for reconstruction efforts following the war. 11 CATALYST FOR PROGRESS PHRD Fund helps address global health to reduce the risk of severe impacts, particularly crises; natural disaster risks on poor populations. PHRD grants also support efforts on other crisis- related fronts, including containing the spread of PHRD Fund project preparation support epidemics and mitigating the impact of natural helps Turkey access $400 million for disaster. Specifically, the fund has helped countries Istanbul recovery and readiness to mobilize World Bank project funding and to cata- Turkey is one of the world’s most seismically active lyze partnerships, such as with the Global Fund for countries. More than 95 percent of the country is at Disaster Risk and Recovery. It also has contributed risk of earthquakes, with 70 percent of the population toward building local, national, and regional capacity and 75 percent of industrial facilities in earthquake- to improve preparedness and mitigate risks. prone areas. Within this high-risk context, Istanbul is situated in one of the most vulnerable areas. The In Burundi, Rwanda, and the Democratic Repub- 1999 Marmara earthquake that affected the city lic of Congo, for example, PHRD grants enabled measured 7.4 on the Richter scale, causing 17,000 focused efforts to combat the spread of HIV/AIDS. deaths and destroying the homes of 200,000 people. In places such as Armenia, Honduras, Nicaragua, The direct economic blow to Turkey was massive; and Turkey, where there is significant risk of costing nearly $5 billion, or around 2.5 percent of natural disaster, grant funding supports recovery, the nation’s gross national product. reconstruction and mitigation. The PHRD Fund also contributes to disaster preparedness activities In the aftermath of this earthquake, attention in Pacific Island nations that have limited capacity turned toward ways to reduce the city’s earthquake EARLY ACTION TO CONTAIN AVIAN FLU HPAI—highly pathogenic avian influenza, also known as bird flu—has killed thousands of birds and caused serious economic losses in countries such as Thailand since it began to appear on the scene in the early 2000s. There is a growing concern among global public health officials that a mutation of this virus could become a deadly human pandemic in the future. The PHRD Fund has been an early mover in support of initiatives to control this significant global public health threat. In 2006, as fear of a widespread outbreak mounted, and before a multi-donor facility could be arranged, the fund set up a special provision for avian flu co-financing grants to help address this emerging problem in nations such as Georgia, Kyrgyz Republic, Armenia, Albania, Lao PDR, and Vietnam. PHRD Fund role and results • $24.7 million in funding before other multi-donor efforts could be mobilized • Multiple grants for public health initiatives in East Asia, Pacific, Europe and Central Asia, including: • Albania: creation of the National Veterinary Epidemiological Unit, establishment of a legal and regulatory disease control framework, and major investments in hospital intensive care units and virology labs reduc- ing the threat of human pandemic • Georgia: training for staff of food safety, border control, and veterinary agencies; enhanced surveillance, emergency response and communication leading to improved control and limited disease spread • Kyrgyz Republic: technical assistance and training to address animal health, human health and public awareness resulting in improved readiness, better prevention and control, and increased government focus on bio-security 12 Leadership, Early Action, and Rapid Response vulnerabilities. The PHRD Fund provided early other Asia countries. The PHRD Fund-supported funding for feasibility studies on specific ways to Miyazawa Initiative followed on this program with enhance Istanbul’s ability to withstand earthquakes, a focus on internal restructuring and reforms to including creating a city-wide emergency com- tackle underlying causes of the crisis, protecting low- munications system, mitigating the vulnerability income groups from the social impacts of the crisis of public buildings, and establishing a financial and ensuring that they share in the recovery, and management system that would support disaster revitalizing international capital flows by restoring preparation and recovery. investor confidence. These initial feasibility studies led to the Istanbul The lessons learned from these efforts have extended Seismic Risk Mitigation and Emergency Prepared- through the years to help address financial turmoil in ness project, which is helping transform Istanbul other parts of the world, as more recently the global into a city resilient to major earthquakes. ISMEP economic downturn threatened to derail significant focuses on enhancing institutional and technical economic progress in these nations. capacity for disaster management and emergency response, strengthening critical public facilities for ADDRESSING CLIMATE CHANGE, earthquake resistance, and supporting measures for PROTECTING ECOSYSTEMS better enforcement of building codes and land use plans. The lessons drawn from this experience are Climate change, deforestation and loss of biodi- being shared with other seismically active regions. versity have implications for societies around the world and for people across the income spectrum. Results and impact from this project include: Scientists suggest that climate change contributes to the marked uptick in intensity and frequency of • $400 million World Bank funding for the land- natural disasters, causing massive damage. Glacial mark ISMEP project retreat is impacting the availability of water, which, • Nearly 500 buildings retrofitted, reconstructed in turn, affects farm output and leads to rising food or strengthened to withstand earthquakes prices, threatening to send millions more people • More than 100 schools rebuilt or retrofitted, into poverty and food insecurity. serving 1 million students • Modernization of hospitals treating more than Cycles of severe drought add to this problem: In 25,000 patients a day Africa alone, farmers rely on rainfall to water more • Disaster management communications center than 95 percent of their crops. Estimates suggest up and running that in some African countries, yields from rain-fed • Training on building standards and codes agriculture could be reduced by up to 50 percent by 2020, because of climate change impacts. PHRD Fund supports recovery from Asian financial crisis Overlooking climate change as part of the global In the1990s, PHRD funding helped Asian countries development agenda is not an option, because it emerge from the devastating effects of economic affects nearly all aspects of the effort to reduce pov- turmoil. The Financial Sector Advisory Services erty, impeding progress in achieving the Millennium Program, supported by PHRD funds, was an early Development Goals. Since 2012, the PHRD Climate response to the crisis in the Republic of Korea, Change Initiative Grant Program has contributed Indonesia, the Philippines, Thailand, Vietnam and to the broad range of cross-cutting work aimed at 13 CATALYST FOR PROGRESS Exploration Agency; work is being replicated in other countries with coastal ecosystems. Photo credit: Curt Carnemark The Multiplier Effect: PHRD grants build Brazil’s knowledge base in forestry; Brazil shares best practices with Africa’s forested nations At 5.5 million square kilometers in size, the famed Amazon is the world’s largest rainforest. Nearly 60 percent of its land mass lies in Brazil. As host of this unique ecosystem, Brazil faces opportunities and challenges: preservation, economic development, addressing climate change. From new financing and social protections for indigenous peoples who mechanisms such as carbon credits and catastrophe call the forest home. risk mitigation and insurance to harnessing renew- able power sources, from reforestation to biodiversity In the 1990s, it experienced one of the highest rates protection, PHRD grants are supporting projects to of deforestation in the world. But with many stud- meet the vast array of climate-related challenges ies suggesting that global deforestation contributes around the world. significantly to climate change and global warming, causing 20 percent of the world’s carbon emissions, Through the PHRD Fund, Japan also supports Brazil began to intensify its focus on sustainable important work to preserve the most biologically forestry, preservation, plantation and reforestation. significant and threatened areas of the world. These efforts have led to a considerably slower rate Recent grants support: • Carbon capture and development of environ- Through the PHRD Fund, Japan plays a catalytic ment markets in Costa Rica’s indigenous cocoa role in helping developing countries address agro-forestry systems; strengthening skills and climate change and preserve forests and critical understanding of carbon systems for indigenous ecosystems. peoples’ organizations, enabling one group to negotiate carbon sale contracts and identifying • About $83 million in funding for projects cover- another indigenous group to manage potential ing in some 40 countries carbon capture projects. • Essential and unique source of funding for • Study of barriers to geothermal utilization; countries to mainstream climate change into development policies and programs government planning to promote the use of • Funds to prepare projects for financing from geothermal energy and reduce greenhouse gas the World Bank and the Global Environment emissions in Bulgaria. Facility, without which many projects would not • Methodology to assess and quantify economic have moved forward and physical impacts from intensified hur- • Support for developing countries’ entry into ricanes along the coast of the Gulf of Mexico the global carbon market and an economic analysis of climate change • Funding for innovative research to benefit impacts on Mexico’s national water resources recipient countries in partnership with JAXA, the Japan Aerospace 14 Leadership, Early Action, and Rapid Response of loss, according to the United Nations’ Food and In addition, a new regional initiative in collabora- Agriculture Organization. In the meantime, the tion with the Brazilian National Institute for Space nation has emerged as a global leader in sustain- is providing support for the Congo Basin countries able forestry. as they improve their national monitoring capacity to estimate forest cover and forest cover changes Africa is home to massive forest resources as well. and measure the amount of carbon stocks contained The Congo Basin rainforests are second only to in forests in the region. the Amazon in combined size, and support the livelihoods of some 60 million people. But Africa PHRD Fund role also struggles with deforestation, losing forests at Through the years, the PHRD Fund has supported an alarming rate of 3.4 million hectares each year Brazil’s focus on sustainable forestry, providing between 2000 and 2010. funding for efforts that have helped Brazil address its climate change challenges and built its sustain- Now, African officials are addressing the issues and able forestry expertise, including: looking at ways to take advantage of opportunities to create positive lasting economic and climate • Technical assistance grants for a variety of impacts, through carbon sequestration and biodi- forest-related projects in Brazil: versity conservation. They are getting guidance and • agricultural technology advice from a country that understands the issues, • water resource management opportunities and challenges well: Brazil. • forest conservation • sustainable use of forest resources Brazil’s forest experts are sharing their knowledge, • environmental education best practices and lessons of experience with their • Partnering with the Global Environment Facility African counterparts. One recent knowledge event to support Brazil’s efforts to build sustainable brought teams from five Congo Basin nations and forestry practices and gain biodiversity expertise Madagascar to Brazil, to learn more about the United • Building Brazil’s capacity to participate in the Nations’ Reduced Emissions from Deforestation global carbon market and Forest Degradation program—REDD—and the • Funding for knowledge exchanges between financial potential associated with reducing carbon Brazil and Congo Basin nations emissions. 15 CATALYST FOR PROGRESS PHRD FUND PARTNERS TO SUPPORT CARBON FINANCE CAPACITY BUILDING The World Bank’s Carbon Finance Assist program—CF-Assist—is giving developing countries the skills and expertise they need to actively participate in the global carbon market through focused capacity building. Activi- ties include institutional strengthening at the country and regional levels, capacity building on carbon finance project development for multiple stakeholders, facilitating market development through global and regional events, and knowledge management and outreach. The PHRD Fund has contributed more than $6 million to this effort through the years, with strong results: • Enabled developing country participation at Carbon Expo, the premier international carbon market event, and at regional events • Sponsored training programs and events that educate thousands of professionals on participation in the carbon market • Provided capacity building activities in more than 45 developing countries plus regional market development activities in South and West Africa • Facilitated the development of innovative financing mechanisms: Mexican Carbon Facility, Brazil auctioning platform, among others 16 4.  PEOPLE, PARTNERSHIP, AND KNOWLEDGE CREATING OPPORTUNITY FOR THE papers. These important documents are used by the POOR World Bank and the International Monetary Fund as the basis of concessional assistance for low-income According to recent development indicators, countries that have received debt relief under the the world is making some progress on reduc- enhanced Highly Indebted Poor Countries Initiative. ing poverty and improving the quality of life in This allows them to continue to receive aid despite developing countries. Yet, significant challenges their debt load. remain, particularly for the poorest of the poor, for women, and for the disenfranchised, such as In addition to this strategic assistance for low- disabled people. income countries, the PHRD Fund supports the World Bank’s broader efforts to reach the poor in Through the years, the PHRD Fund has provided developing countries, with an emphasis on: $10 million to low-income countries so they can prepare their formal poverty reduction strategy • Physical infrastructure: building bridges, roads, water lines, modern communications networks • Empowerment: connecting poor micro-entre- preneurs with financing and resources to help them build their businesses • Economic growth: developing legal and regu- latory frameworks, improving public financial management, enhancing industry productivity Photo credit: Curt Carnemark 17 CATALYST FOR PROGRESS WHERE ARE THE POOR? WHAT DOES POVERTY LOOK LIKE? Mapping project allows for better development planning A recently developed series of maps details in depth, spatially referenced data on hunger, infant mortality, income poverty and other related indicators at the global, regional, national and local scales. They provide an array of geo-referenced poverty estimates at very high levels of spatial resolution. The PHRD Fund co-financed this joint initiative of the Center for International Earth Science Information Net- work and the World Bank in 2007 to increase awareness of the scope and extent of poverty around the world. “These collections make possible radically new approaches in poverty reduction strategies, in aid evalua- tion, and in the general understanding of the geographic drivers of development,” notes a news brief on the project from Columbia University’s Earth Institute. TAPPING INTO GEORGIA’S POTENTIAL AS AN AGRICULTURAL EXPORTER Agriculture employs a lot of people in Georgia. It is often the only job opportunity available in rural com- munities. It also represents significant potential for the country, which has the climate and soil resources needed to become a net exporter. Yet, the country is struggling to produce the quality and quantity needed to gain a foothold in export mar- kets. Small farmers are constrained because of limited access to working capital, strong seed varieties and new technologies. They lack an organized infrastructure to market their products. And the inefficiency of many Georgian agro-processors means that they can’t offer favorable prices, technology, quality control or credit to farmers. PHRD funding helped to prepare a strong and viable project design for a wide-ranging agricultural devel- opment initiative here. The initiative is aimed at improving agricultural production and expanding access to markets for smaller farming operations by increasing the competitiveness of selected supply chains and strengthening financial intermediaries. The project has made a difference already, giving farmers and agro-processors increased access to credit to support process improvements that will increase efficiency, product quality and farm productivity, so that Georgia can compete for its share in the global agricultural export market. One such beneficiary is microfinance institution Finagro, which has started to provide affordable lines of microcredit to farmers as a result of the favorable terms it received through the project. “Microfinance organizations do not have the luxury of getting good loan conditions,” explains Giorgi Chon- ishvili, head of Finagro’s supervisory board. “Other donors and commercial banks give us credit under worse conditions, with higher interest rates. The conditions offered under this project are truly acceptable for us, and accordingly, we offer farmers an opportunity to get loans with good interest rates.” 18 People, Partnership, and Knowledge Since PHRD’s inception, preparation grants have contributed to deepened development impact and Photo credit: Nugroho Nurdikiawan Sunjoyo stronger results for World Bank projects that attack poverty on multiple fronts. Positive results of such early round efforts include: • Construction of a water pipeline that provides 4.5 million people with clean drinking water in five regions in Kerala, India • Community development activities in Madagas- car, such as generating income for poor citizens and enrolling malnourished children in schools that provide food • National urban sewer, sanitation and drainage strategy and action plan in the Philippines and identification of priority infrastructure projects in five cities PARTNERING FOR THE PUBLIC GOOD When the issues are so critical and the impacts challenges, leading to sustainable improvements are so far-reaching—HIV/AIDS; hunger and food for people across the income spectrum. insecurity; the increase in number and intensity of natural disasters; impacts of global warming on Partnering support for on-going work at the World livelihoods, to name a few—leveraging the power of Bank includes specific issues that transcend borders partnership and collaboration offers the best hope and incomes. Among recent PHRD Fund grants for for enduring solutions. such analytical work: Since its inception, the PHRD Fund has emphasized • Universal health coverage: joint analytical partnership in addressing World Bank strategic studies, consultations, and public awareness priorities. This partnership approach means that activities to strengthen health systems in devel- the fund contributes to efforts that receive financ- oping countries, as part of the effort to meet ing from other sources and to work being done by the Millennium Development Goals. other organizations. • Learning from mega disasters: a program of knowl- edge sharing and exchange between the World The fund also contributes to other World Bank- Bank and Japan. Following the March 2011 disaster managed global and regional trust funds. In the in Japan, the World Bank and Japan began a joint process, Japan has developed strong working rela- project to develop a collaborative framework on tionships with other donors in addressing critical disaster risk management and reconstruction. 19 CATALYST FOR PROGRESS The Japan-World Bank Partnership Program, sup- PHRD FUND IN PARTNERSHIP ported by the PHRD Fund, is aimed at building and sharing knowledge between the World Bank The PHRD Fund supports ground-breaking work and Japanese research organizations. on issues of global importance being done by leading global and Japanese organizations. Here are a few of the PHRD Fund’s partners. • Partnership grant to strengthen Asian economies: CGIAR, a global agri- promoting collaborative research among major cultural research initia- Asian think-tanks and academics on regional tive, aims to make sup- and financial issues through the Japan-World plies of basic foods in Bank Partnership Program. developing countries dependable by improving the productivity and the quality of the crops farm- ers grow and the ways they grow them. STUDY ASSESSES AFRICA’S The international AIDS Vaccine MANUFACTURING OPPORTUNITIES Initiative—a multi-donor funded non-profit—is Can Africa become a location of choice for global researching and developing manufacturing? safe, effective, accessible, A recent study, funded by PHRD in partnership preventive HIV vaccines for use throughout the world. with the Bank-Netherlands Partnership Program, The PHRD Fund participates in this initiative. draws on innovative analytical research to show JAXA satellites collect that Sub-Saharan Africa could become competi- observations on the chang- tive in light manufacturing and create millions of es in the earth’s crust, productive jobs in the process. enhancing prediction capa- Comparisons are made with Asian countries to bilities for earthquakes and other natural disasters benchmark Africa’s potential. A focused and and expanding the knowledge base about the pragmatic policy agenda is proposed for Ethiopia, effects if global warming. JAXA’s DAICHI satellite with additional insights for Tanzania and Zambia provided data on the impact of global warming in this extensive, four-volume study, the first of on the geography of a number of Latin American its kind. countries through PHRD grant funding. 20 People, Partnership, and Knowledge NURTURING YOUNG MINDS Japan places high emphasis on educating its young people. This emphasis is reflected in the PHRD Fund’s focus on education, training, skill building, Photo credit: Masaru Goto and knowledge transfer. In fact, knowledge lies at the core of all the work supported by the fund. The fund has financed technical assistance to devel- oping countries for design of education projects that subsequently receive funding by the World Bank. These projects give school children access to twenty-first century learning opportunities so they can make their way in a world that is increasingly reliant on technology and innovation. PHRD funds have supported projects to address the range of to boost test scores. And in Romania, a higher edu- issues that get in the way of student achievement in cation project prepared with support from PHRD’s developing countries, from hunger and high dropout technical assistance program has resulted in policy rates—particularly for girls—to insufficient teacher reforms that have improved the country’s higher training and lack of modern text books. education and research system, efforts that are being replicated across the region. For example, a PHRD co-financing grant supporting access to universal quality education in Senegal PHRD funding connects distance enabled detailed data collection on student achieve- learners with Japanese centers of ment, which was used to develop pilot interventions excellence Another initiative supported by the PHRD Fund is the Japan/World Bank Distance Learning Partnership project. This project is providing distance learners TRAINING TEACHERS FOR SUCCESS with access to Japanese and regional development- IN GAMBIA related content through distance learning centers affiliated with the Global Development Learning In Gambia, teachers are better prepared and having Network in East Asia and the Pacific. more success in the classroom as a result of training and skills-building activities, part of a wide-ranging education project co-financed through PHRD grants. The initiative is a partnership with the Tokyo Distance Learning Center, a world-class distance learning center The effort has reduced teacher attrition and with state-of-the-art facilities for videoconferencing improved educational outcomes, leading to lower and multimedia production, and highly capable staff. dropout rates, and increased enrollment—particu- larly for girls who are most at risk of leaving school Of note, the project enables: before graduation. Funding also contributed to facilities improvements that have helped improve health and hygiene, including through upgraded • Enhanced access by developing countries to the toilets and clean drinking water. knowledge resources and development expertise of Japanese institutions 21 CATALYST FOR PROGRESS • Enhanced opportunity for Japanese institutions The learning network has become a well-func- to undertake outreach and forge partnerships tioning regional association, serving as a platform with countries and institutions of other regions to support the knowledge-sharing and learning • Successful adoption of a network-oriented, programs of the World Bank and other develop- regional approach to knowledge sharing and ment partners. capacity building 22 People, Partnership, and Knowledge EDUCATING NEW GENERATIONS OF DEVELOPMENT LEADERS Knowledge is a foundation for development. This is the underlying premise of the Joint Japan/World Photo credit: JJ/WBGSP Bank Graduate Scholarship Program. For more than two decades, this unique program, funded by the PHRD Fund and administered by the World Bank Institute, has provided officials and development personnel in developing countries access to graduate degree studies from outstanding academic institu- tions. Japan is unique in sponsoring such an exten- sive, targeted education and knowledge initiative, aimed at building local capacity so that countries How the Joint Japan/World Bank can cultivate their own cadre of well-educated, Graduate Scholarship Program works highly skilled professionals to create and advance The program—also known by its acronym, JJ/ their development agendas. WBGSP—sponsors scholars from central banks, ministries and civil service departments and insti- The educational opportunities afforded by this tutions, including universities and schools, who program are producing new generations of vision- actively participate in the development process in ary, passionate leaders who learn from world-class their countries. Partnership programs with world- academics, exchange knowledge with each other and class universities in Japan and other countries enable bring their knowledge back home to put it toward scholars to receive specialized training in key areas of institution-building and development in their own development, such as economic policy management nations. This knowledge exchange extends to the or infrastructure management, leading to advanced global stage as well, as they share their knowledge degrees. In addition to using what they have learned with the greater community of development profes- for the benefit of their own countries, cohorts of sionals and provide new insight to the universities young scholars contribute to the global knowledge where they studied. base about development through their own research. The JJ/WBGSP provides educational opportunities at three levels: By the Numbers: Joint Japan-World Bank Gradu- ate Scholarship Program • Graduate studies scholarships for qualified candidates in development-related fields at • 5,000 plus alumni universities in Japan and other countries • 99 percent complete studies • Access to global knowledge and international • 50 percent women • 83 percent return to home country networking while scholars are earning their • 95 percent employed degrees, by way of knowledge-sharing forums • 80 percent of graduates work directly on devel- and other learning activities opment-related issues • Life-long learning opportunities after degree • 32 percent work in central government agencies completion through alumni activities such as alumni study tours in Japan. 23 CATALYST FOR PROGRESS IN THEIR OWN WORDS JJ/WBSP scholars talk about bringing their knowledge back home and making a difference where it counts. “I have returned to Uganda to assume a leadership position at the Central Bank. As a result of my studies, I am taking a pro-active role in the quantitative formulation of monetary and financial policies that will in turn translate into sustainable development for my country.” Caroline B. Ntumwa Financial Analyst Central Bank, Uganda “For me, the program was very helpful to improve my skills and it truly benefited my country because I brought these skills to my role as finance minister.” Luis Carlo Jemio Former Minister of Finance Bolivia “The lessons learned through my JJ/WBGSP- supported graduate studies and through an alumni study tour of Japan have broadened my professional exposure and contributed to my skills and knowledge in the economics of development, so I can continue my work to improve Kenya’s economy.” Peter Kibet Biwott Development Economist Ministry of Trade, Kenya “One of the pressing challenges currently facing Bhutan is the need to accelerate economic growth so that the national objective of reducing poverty and promoting balanced and equi- table development throughout the country can be achieved effectively. At the same time, the Bhutanese government wants to ensure that the environment is well protected and that the country’s cultural and traditional heritage continues to flourish. Understanding and incorporating certain elements of the Japanese way—things I observed on my study tour in Japan such as investment in building up human capacity through education and skills-building—would definitely benefit my country.” Tashi Choden Senior Researcher Centre for Bhutan Studies, Royal Government of Bhutan 24 5.  NEW CHALLENGES IN A CHANGING WORLD B uilding on its track record of experience, today’s funding, PHRD makes this happen. Recent alloca- PHRD Fund is nimble and responsive, helping tions include: the World Bank to address newly emerging challenges in a changing world. Its flexible structure • $100 million to improve rice productivity in Afri- allows continued alignment with World Bank strategic ca to address food insecurity and malnutrition priorities, and addresses Japan’s strong interest in • $50 million to enhance disaster risk manage- partnering with the Bank on these priorities. ment capabilities in South Asia and in Pacific Island countries that are highly vulnerable to Meanwhile, the fund remains true to its origins with natural hazards a continued focus on enhancing human resources • $40 million to overcome economic, social, and capacity in developing countries. As issues evolve cultural barriers for people with disabilities in and change, government officials and development five nations professionals alike will need new tools, skills and • $10 million to support pandemic virus preven- knowledge to address them. Through its grant tion research …Disaster risk reduction and increasing resilience to all types of natural hazards..in developing …We commit ourselves to… increas- countries.. can have multiplier ing the rate of agricultural produc- effects and accelerate achievement tivity growth in developing coun- of the Millennium Development tries … and supporting agricultural Goals... ” research and innovation, extension services and agricultural education …Policies and actions must focus in developing countries…” on the poor and those living in the most vulnerable situations, includ- —Excerpts from Resolution by the ing persons with disabilities, so United Nations General Assembly on Keeping the Promise to Achieve the that they may benefit from prog- Millennium Development Goals ress towards achieving the Mil- lennium Development Goals... ” 25 CATALYST FOR PROGRESS It is a growing concern with complex root causes and multiple implications: infant mortality, hunger, malnutrition, political unrest and civil disturbance, to name but a few. And it requires innovation, intervention and action on many fronts. The PHRD Fund has long supported projects to address food price volatility in low- and middle- income countries. More recently, the fund has targeted efforts to enhance agricultural productiv- Photo credit: Scott Wallace ity in Africa as a way to stabilize the cost of food and increase the food supply. In 2011–12 alone, the PHRD Fund committed $20 million for agricultural research and $80 million in support of new agri- cultural approaches. Specifically, the focus is on tapping into Africa’s potential as an agricultural center for rice production. Why rice? This long-time staple of the Asian diet offers tremendous potential as a weapon in the fight IMPROVING AGRICULTURAL against hunger in Africa. The climate and geography PRODUCTIVITY IN AFRICA in parts of the continent make it ideal as a center for rice production. And Africa’s appetite for rice Global price volatility for food staples has meant is growing. The volume of rice imports into Africa that it is more expensive for people all over the has increased astronomically in recent years. In world to feed their families. Cost increases impact Liberia in 2008, for example, import volume soared citizens across the income spectrum, leaving more to 225,000 metric tons, valued at an estimated $200 families to wonder where their next meal is coming million, according to Liberian newspaper The New from. This food security crisis threatens to undo Dawn Liberia—a cost the struggling post-war gov- progress achieved on the Millennium Development ernment could ill afford. Goal to reduce by half the number of people living in poverty by 2015. Many African nations have yet to take advantage of the opportunities that could come with expanded rice production—increasing the availability of locally-produced, lower-cost, and high quality food staples; diversifying agricultural production to Rice research in Africa provides mitigate business risk; and creating a new source a strong case for investment.” of regional trade. Now this is beginning to change, as governments, agricultural authorities, economic Peter Matlon, development officials, and farmers alike understand Chair of the Board of Trustees of more about the value of expanding rice production AfricaRice, a consortium of African governments and focus on researching ways to develop rice vari- eties that can flourish in African soil. Notes Peter 26 New Challenges in a Changing World Matlon, Chair of the Board of Trustees of AfricaRice, Ravatomanga said that his country is on track to a consortium of African governments, “Rice research cut its rice imports by half—from 20 percent to 10 in Africa provides a strong case for investment.” percent of their rice consumption—in the next year. And rice is now a major livelihood option for farm- About the Africa Rice Development ers in Ethiopia, who are using new stress-tolerant Program and climate-resilient rice production technologies In acknowledging the enormous potential rice holds to improve farm productivity. for Africa, a new organization—the Coalition for African Rice Development—was created to oversee PHRD Fund role efforts to expand agricultural production of rice in PHRD Fund contributions to the Africa Rice Devel- Africa. Launched in 2008 alongside the Fourth Tokyo opment Program include: International Conference on African Development, the coalition is a collaborative effort that includes • $20 million to support rice coalition partner the Japan International Cooperation Agency, the CGIAR’s research on rice productivity Alliance for a Green Revolution in Africa and the • $35 million grant to support participation of New Partnership for African Development. Cote d’Ivoire, Guinea, Liberia and Sierra Leone in the West Africa region’s Rice Research and The work is aimed at reducing Africa’s reliance Productivity Development Program on higher-priced rice imports and improving food • $14.25 million grant to boost Tanzania’s rice security while building a thriving agricultural production, connect farmers to markets, and industry that can contribute to broader economic increase use of technology for agribusinesses improvements. in Morogoro, Kilimanjaro, Meyer, Tabor, Centre and Kwanza With a strategy that encompasses research on • $15 million for sustainable irrigation funding heartier rice varieties that can thrive in African in Mozambique soil and withstand disease, as well as knowledge sharing and training for rice farmers on ways to As the work moves forward in Africa, the research, improve crop yield, the program is starting to yield knowledge and experience gained can be shared results. For example, at an August 2012 confer- with other regions as they confront this global ence, Madagascar’s agriculture minister Roland challenge. 27 CATALYST FOR PROGRESS REDUCING DISASTER RISKS Close to home, Japan and the PHRD Fund are improving disaster preparedness in Asia and the Pacific Islands. As a nation, Japan understands all too well the depth and breadth of destruction caused by natural disaster. The Great East Japan Photo credit: Curt Carnemark Earthquake and Tsunami of 2011 is only the most recent example of Japan’s experience with such catastrophic events. Out of these national traumas have risen world class expertise, academic leadership and technical skills in the area of disaster preparedness, which are contributing to building the global knowledge base on how to prepare and respond when disaster strikes. PHRD grants are funding several projects aimed at helping vulnerable nations such as Mongolia, Lao ASSESSING THE VULNERABILITY OF PDR, Bangladesh and Nepal, as well as other coun- PACIFIC ISLAND NATIONS tries in the Asia-Pacific region, to understand more about actions they can take to reduce the damage The Pacific Risk Assessment and Financing Initia- and loss of life caused by such events. tive addresses disaster risks in these vulnerable nations: About the Pacific Catastrophic Risk Cook Islands Assessment and Financing Initiative Federated States of Micronesia The southern portion of the Pacific “Ring of Fire” Fiji is where continental plates in the earth’s crust col- Kiribati lide. It is one of the most disaster-prone regions on Marshall Islands earth, and the devastation can be catastrophic: some Nauru countries here face losses from a single event that Niue are equivalent to their entire annual gross domestic Palau product. Average annual direct losses caused by Papua New Guinea Samoa natural disasters in the South Pacific region are Solomon Islands estimated at $284 million. The consequences of Timor Leste these natural disasters are especially dire for the Tonga poor, who tend to live in higher-risk areas, and Tuvalu typically have fewer options in terms of protection Vanuatu or risk mitigation. 28 New Challenges in a Changing World Now, an ambitious effort is underway, aimed at In addition, a massive database provides a detailed creating disaster risk assessment tools and practical look at the landmass of 15 Pacific island nations. technical and financial applications to reduce and The database represents the most comprehensive mitigate the vulnerability of low-lying Pacific Island exposure dataset for this part of the world to date, countries to natural disasters. and includes information on major cash crops, ground cover, topological maps and population. The Pacific Catastrophic Risk Assessment and Also provided is a complete set of hazard maps Financing Initiative is a multi-pronged effort, part for the region and simulated risk and loss maps at of a broader agenda to address the impacts of a level of precision that can be used for planning climate change in the region. The joint initiative purposes. between the World Bank, Asian Development Bank and South Pacific Applied Geoscience Commission An important aspect of the effort involves improving is co-funded by Japan through the PHRD Fund post-disaster analysis and future disaster risk reduc- and the Global Facility for Disaster Reduction and tion planning. The initiative is providing funding for Recovery. guidance and advice to officials in the Pacific Island nations on ways to reduce fiscal shocks through Already, the project has generated: catastrophe financing such as budget reserves, contingency facilities, or catastrophe insurance • State-of-the-art catastrophe risk models and by establishing new building codes and rapid • Country disaster risk profiles post-disaster assessments. • Disaster and climate risk financing and insur- ance models 29 CATALYST FOR PROGRESS BREAKING DOWN BARRIERS FOR PEOPLE WITH DISABILITIES The disabled often are among the most isolated and disconnected people in their communities, regardless of where they live. Given the lengthy list of development priorities facing many emerging market nations, they may neglect the issues facing the disabled as they conduct development policy dialogue and implement projects. Photo credit: Masaru Goto But with more than one billion of the world’s popu- lation living with disabilities, governments cannot afford to overlook them. In fact, the World Report on Disability 2011, a joint report by the World Bank and the World Health Organization, reveals that people with disabilities have generally poorer health, lower education achievements, fewer economic opportuni- ties and higher rates of poverty than people without disabilities. This is largely due to the lack of services EMPOWERING THE DISABLED available to them and the many obstacles they face in their everyday lives. Disabled people in five developing countries will soon have new opportunity as a result of The PHRD Fund supports activities aligned with the PHRD-funded projects that will break down recommendations provided in the report, such as barriers preventing them from being a part of ways to overcome barriers to health care, rehabilita- broader society. tion, education, employment, and support services, and to create the environments which will enable • In Romania, law-makers will have more reliable people with disabilities to flourish. data and information so they can develop poli- cies in support of disabled people. Priority areas include: • In Morocco, people with limited mobility will have better access to public institutions and facilities. • Capacity building for government organizations, • In India’s Tamil Nadu province, people with civil society organizations, and private sector mental impairment will have fuller participation to mainstream disability in service delivery in community activities and job training. systems, including improving access to educa- • In Lima, Peru, the municipality is increasing its tion and job skills training, and increasing entry accessibility for people with limited mobility by into the job world expanding the pedestrian grid and enhancing • Introducing innovative approaches to improve public transportation. the well-being of the disabled • In Guinea, school officials and teachers will • Strengthening disabled people’s voice in the receive training and tools so that children with development dialogue by building up capacity mild disabilities can learn with other children of disabled people’s organizations in emerging in regular classroom settings. markets 30 6.  LOOKING AHEAD W ith its vast experience at home and knowledge base on development-related issues, abroad, Japan will no doubt play a key and allow for broader opportunities to share this leadership role in addressing existing knowledge. In this way, developing countries will and new development challenges that emerge in the have increased access to education, research, and coming years. Through the PHRD Fund, the strong knowledge so they can build the skill sets and partnership between Japan and the World Bank will human resources capacity to address the complex contribute greatly to these efforts. issues they face. Knowledge is an important component of any In looking forward to a shared future, the partner- effort to help developing countries tackle their ship between Japan and the World Bank builds on economic, social, and environmental challenges. the PHRD Fund’s proud legacy—spanning nearly Japan’s continued unwavering support of the PHRD 25 years—of commitment to reducing poverty and Fund will help to expand and enhance the global improving people’s lives. 31 THE WORLD BANK 1818 H Street, NW THE GOVERNMENT OF JAPAN Washington, DC 20433 www.worldbank.org/cfp PHRD FUND AT A GLANCE Established nearly 25 years ago by the government of Japan in collaboration with the World Bank First-of-its-kind, flexible grant fund for technical assistance for developing member countries of the World Bank Successful approach has built institutional and human resources capacity so countries can access billions in support of development priorities Technical assistance funded through PHRD laid the foundation for more than 30 percent of all World Bank- financed operations in developing countries By example, paved the way for other World Bank- managed trust funds disbursing some $4 billion currently Emphasis on people: education, knowledge sharing, capacity building, research, and access to technology Focus on crisis response and preparedness, climate change and environment, and disability Expanded reach and impact through partnership