A NNUAL REPO RT 2016 Contents 2 World Bank Group 2016 Summary Results 2 Message from the President of the World Bank Group and Chairman of the Board of Executive Directors 8 Message from the Board of Executive Directors 11 Ending Extreme Poverty and Promoting Shared Prosperity in a Sustainable Manner 23 The Regions 48 Advancing the Global Development Agenda with New Possibilities for Engagement 51 Sustainably Managing the Bank’s Internal Operations 54 Ensuring Accountability and Improving Operations at the World Bank 56 The Roles and Resources of the World Bank 64 Committed to Results KEY BOXES 15 From Billions to Trillions to Action 19 Economy, Efficiency, and Effectiveness: Ensuring Value from WBG Operations 21 Meeting Diverse Client Demands with Reimbursable Advisory Service 55 The World Bank Policy on Access to Information KEY TABLES 53 World Bank Corporate Sustainability Impacts 62 IBRD Operational Summary and Lending by Theme and Sector, Fiscal 2012–16 63 IDA Operational Summary and Lending by Theme and Sector, Fiscal 2012–16 This Annual Report, which covers the period from July 1, 2015, to June 30, 2016, has been prepared by the Executive Directors of both the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA)—collectively known as the World Bank—in accordance with the respective bylaws of the two institutions. Dr. Jim Yong Kim, President of the World Bank Group and Chairman of the Board of Executive Directors, has submitted this report, together with the accompanying administrative budgets and audited financial statements, to the Board of Governors. Annual Reports for the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and the International Centre for Settlement of Investment Disputes (ICSID) are published separately. Throughout the report, the term World Bank and the abbreviated Bank refer only to IBRD and IDA; the term World Bank Group and the abbreviated Bank Group refer to the collective work of IBRD, IDA, IFC, and MIGA. All dollar amounts used in this Annual Report are current U.S. dollars unless otherwise specified. Funds allocated to multiregional projects are accounted for at the country level in tables and text. As a result of rounding, numbers in tables may not add to totals and percentages in figures may not add to 100. Addressing Critical Global Challenges CLIMATE CHANGE could push 100 million people into PANDEMICS POVERTY In 2015 the planet temperature A pandemic is an outbreak that has crossed was 0.9°C above the 20th century borders and overwhelmed a health system— average—nearly halfway to the a scenario far more likely in a poor country. globally agreed-on 2°C threshold for severe climate effects. The human and economic costs of the recent Ebola crisis = 11,300+ deaths $2.8 billion (GDP losses) FORCED DISPLACEMENT GUINEA SIERRA LEONE LIBERIA Donor countries committed a total of more than $7 billion for Ebola response and recovery. One in 122 people in the world are forcibly displaced. Refugees + internally displaced persons + asylum seekers = >60 million people globally With Innovative Financing and Solutions The Climate Action Plan of the World Bank Group Recognizing the immediate and long-term development The World Bank Group helped launch the (WBG) includes ambitious goals for 2020: 30+ needs of forcibly displaced people, the WBG is working Pandemic Emergency Financing Facility (PEF) gigawatts of renewable energy; early warning systems for with partners to develop responses that compliment humanitarian with the World Health Organization and other partners. 100+ million people; and climate-smart agriculture invest- assistance. For example, partnering with the United Nations and The PEF can release up to $500 million quickly to pandemic ment plans for 40+ countries. The WBG and partners are the Islamic Development Bank, the WBG has launched a facility to responders in the poorest countries. It also provides incentives working to put a price on carbon pollution: by 2020, 25% support Syrian refugees and host communities in Jordan and to strengthen national health systems and prepare for future of carbon emissions will have pricing mechanisms; and by Lebanon; the facility can provide up to $800 million in conces- outbreaks. 2030, the percentage with pricing mechanisms will double. sional loans to scale up vital programs and services. The World Bank Annual Report 2016 Ending extreme poverty by 2030 and boosting shared prosperity in a sustainable manner are the driving missions for the World Bank Group. While the goals are simple to grasp, the efforts it will take to meet them are not. Just as there are many interconnected and overlapping causes behind extreme poverty, the solu- tions required are just as complex and unique to each country’s individual cir- cumstances. The fundamentals, however, remain true: countries must grow their economies inclusively, so that everyone benefits; they must invest in their people; and they must ensure that those who have left poverty do not fall back into it. Yet, the world today is much different than it was even just a few years ago. The global community is facing challenges that are diverse in nature—economic, humanitarian, environmental—but that share key features. First, they threaten the hard-won development gains of recent decades; and second, they will not be con- tained within any one country’s borders. Millions of people have been forcibly dis- placed by conflict and live in ever-more fragile areas; the risks of pandemics can devastate the health of individuals, but also undermine countries’ economies; and the threats of climate change are becoming ever more apparent. Everyone will be affected. Yet the poorest and most vulnerable will be affected most. To address these challenges, the World Bank Group is working to become a more agile partner in addressing the world’s most pressing problems. It aims to leverage and apply its unique capabilities to provide the innovative financing and creative solutions that support countries in dealing with these challenges at the local, regional, and global levels. As the world works to confront these challenges, the World Bank Group will continue to play an essential role in supporting global development and working to safeguard the progress toward the 2030 sustainable development agenda. This Annual Report focuses on how two of the World Bank Group’s institutions— the International Bank for Reconstruction and Development (IBRD) and the Inter- national Development Association (IDA)—are partnering with countries to end extreme poverty by 2030, promote shared prosperity, and support the global sus- tainable development agenda. The following websites and additional links throughout the report are provided for further information: • Annual Report 2016: worldbank.org/annualreport • Corporate Scorecard: worldbank.org/corporatescorecard • World Bank Results: worldbank.org/results • World Bank Open Data: data.worldbank.org • Corporate Responsibility: worldbank.org/corporateresponsibility • Access to Information: worldbank.org/en/access-to-information WORLD BANK GROUP 2016 SUMMARY RESULTS Message from the President of the World Bank Group and Chairman of the Board of Executive Directors In recent years, historic progress has been made to end extreme poverty around the globe. More than 1 billion people lifted themselves out of poverty in the past 15 years alone. In 2015, for the first time ever, the World Bank Group forecast that the global percentage of people living in extreme poverty fell under 10 percent. This is a remarkable milestone. Yet the world today faces challenges that are as complex and vexing as at any time in recent memory. Strong economic headwinds have slowed global growth; fragility and conflict have displaced tens of millions of people from their homes; countries and their economies are vulnerable to natural disasters and climate change–related shocks; and a pandemic can spread quickly without warning. We are all affected by these challenges, but the stark truth is that people living in extreme poverty are hit first and hardest. Our mission at the World Bank Group is defined by two goals—to end extreme poverty by 2030 and to boost prosperity among the poorest 40 percent in low- and middle-income countries. To achieve them, we are focusing on broad-based, inclusive growth, and we remain vigilant against shocks that can reverse hard-won gains in development. We know that business as usual won’t be enough. The World Bank Group is collaborating in new ways with an increasingly diverse array of partners. For example, we partnered with the United Nations and the Islamic Development Bank Group last year to launch an innovative financing facility in support of Syrian refugees and host communities in Jordan and Lebanon. Based on the initial contributions provided by eight nations and the European Commission, the facility will be able to immediately generate up to $800 million in conces- sional loans for Jordan and Lebanon. This will allow the scaling up of programs to expand vital services, such as health and education, to meet the combined demand from refugees and citizens. This is one of the many groundbreaking solutions we are implementing to address today’s global challenges. The talented and dedicated staff of our main financing institutions—the International Bank for Reconstruction and Develop- ment (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA)—work together to mobilize the innovative solutions and investments necessary to support inclusive economic growth. This year the World Bank Group committed nearly $64.2 billion in loans, grants, equity investments, and guarantees to its members and private busi- nesses. Client demand for IBRD’s services continues to be strong, and this year it made commitments totaling $29.7 billion—the highest amount ever outside of a financial crisis. And IDA, the World Bank’s fund for the poorest, committed $16.2 billion to support countries most in need to face their toughest challenges. Working with the private sector will become increasingly important to meet the scale of financing needs for our development goals. IFC and MIGA, our two institutions focused on private sector development, are strengthening their efforts in this regard. IFC delivered a record amount of financing for private sector development—about $18.8 billion, including $7.7 billion mobilized from investment partners. IFC’s investments in fragile and conflict-affected areas climbed to nearly $1 billion, an increase of more than 50 percent over the previous year. MIGA issued a record $4.3 billion in political risk and credit enhancement guarantees underpinning various investments, with 45 percent of its active portfolio in IDA-eligible countries and 10 percent in countries affected by conflict and fragility. The progress we’ve made in recent decades shows that we are the first generation in human history that can end extreme poverty. This is our great challenge, and our great opportunity. With the collective determination of the World Bank Group, our member countries, and global partners, I remain optimistic that we can tackle these challenges—one region, one country, and one person at a time—and create a more prosperous and inclusive world for all. DR. JIM YONG KIM President of the World Bank Group and Chairman of the Board of Executive Directors 2016 SUMMARY RESULTS 3 Global Commitments The World Bank Group maintained strong support for developing countries over the past year as the organization focused on delivering results more quickly, increasing its relevance for clients and partners, and bringing global solutions to local challenges. LATIN AMERICA AND THE CARIBBEAN $11.4 BILLION $64.2 BILLION in loans, grants, equity investments, and guarantees to partner countries and private businesses. Total includes multiregional and global projects. Regional breakdowns reflect World Bank country classifications. EUROPE AND CENTRAL ASIA $10.3 BILLION EAST ASIA AND PACIFIC $11.4 BILLION $6.3 BILLION $11.3 MIDDLE EAST AND NORTH AFRICA BILLION SOUTH ASIA $13.3 BILLION SUB-SAHARAN AFRICA 2016 SUMMARY RESULTS 5 World Bank Group Financing for Partner Countries BY FISCAL YEAR, MILLIONS OF DOLLARS 2012 2013 2014 2015 2016 WORLD BANK GROUP Commitmentsa 51,221 50,232 58,190 59,776 64,185 Disbursements b 42,390 40,570 44,398 44,582 49,039 IBRD Commitments 20,582 15,249 18,604 23,528 29,729 Disbursements 19,777 16,030 18,761 19,012 22,532 IDA Commitments 14,753 16,298 22,239 18,966 16,171 Disbursements 11,061 11,228 13,432 12,905 13,191 IFC Commitmentsc 9,241 11,008 9,967 10,539 11,117 Disbursements d 7,981 9,971 8,904 9,264 9,953 MIGA Gross issuance 2,657 2,781 3,155 2,828 4,258 Recipient-Executed Trust Funds Commitments 3,988 4,897 4,225 3,914 2,910 Disbursements 3,571 3,341 3,301 3,401 3,363 Includes IBRD, IDA, IFC, Recipient-Executed Trust Fund (RETF) commitments, and MIGA gross a.  issuance. RETF commitments include all recipient-executed grants, and therefore total WBG commitments differ from the amounts reported in the WBG Corporate Scorecard, which includes only a subset of trust-funded activities. b. Includes IBRD, IDA, IFC, and RETF disbursements. Long-term commitments for IFC’s own account. Does not include short-term finance or funds c.  mobilized from other investors. d. For IFC’s own account. Does not include short-term finance or funds mobilized from other investors. The Institutions of the World Bank Group The World Bank Group is one of the world’s largest sources of funding and knowledge for developing countries, consisting of five institutions with a common commitment to reducing poverty, increasing shared prosperity, and promoting sustainable development. International Bank for Reconstruction and Development (IBRD) Lends to governments of middle-income and creditworthy low-income countries International Development Association (IDA) Provides interest-free loans, or credits, and grants to governments of the poorest countries International Finance Corporation (IFC) Provides loans, equity, and advisory services to stimulate private sector investment in developing countries Multilateral Investment Guarantee Agency (MIGA) Provides political risk insurance and credit enhancement to investors and lenders to facilitate foreign direct investment in emerging economies International Centre for the Settlement of Investment Disputes (ICSID) Provides international facilities for conciliation and arbitration of investment disputes 2016 SUMMARY RESULTS 7 Message from the Board of Executive Directors T he 25 resident Executive Directors, representing the World Bank’s 189 mem- ber countries, are responsible for the conduct of the general operations of the World Bank under delegated powers from the Board of Governors. The World Bank comprises both the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). The Executive Directors select a President, who serves as Chair of the Board. The current Board term is from November 2014 to October 2016. Executive Directors fulfill an important role in guiding the general operations and strategic direction of the entire World Bank Group (WBG), and they represent mem- ber countries’ viewpoints on the Bank’s role. They consider and decide on proposals made by the President for IBRD and IDA loans, credits, grants, and guarantees; new policies; the administrative budget; and other operational and financial matters. They also discuss Country Partnership Frameworks—the central tool by which man- agement and the Board review and guide the Bank Group’s engagement with client countries and support for development programs. Moreover, Executive Directors are responsible for presenting to the Board of Governors an audit of accounts, an administrative budget, and the World Bank’s Annual Report on fiscal year results. The Board has five standing committees, namely, the Audit Committee, the Bud- get Committee, the Committee on Development Effectiveness, the Committee on Governance and Administrative Matters, and the Human Resources Committee. Executive Directors serve on one or more of these committees, which help the Board to discharge its oversight responsibilities through in-depth examinations of policies and practices. The Executive Directors’ Steering Committee meets bimonthly to dis- cuss the Board’s strategic work program. Directors periodically travel to member countries to gain firsthand knowledge about a country’s economic and social challenges, visit project activities financed by IBRD and IDA, and discuss with government officials their assessment of the collab- oration with the Bank Group. In fiscal 2016, Directors visited Bangladesh, the Demo- cratic Republic of Congo, India, Indonesia, Mauritania, the Philippines, Senegal, Sri Lanka, and Vietnam. They also visited Syrian refugees and hosting communities in Jordan and Lebanon. 8 THE WORLD BANK ANNUAL REPORT 2016 Back row (left to right): Mohamed Sikieh Kayad, Djibouti; Heenam Choi, Korea, Rep.; Louis Rene Peter Larose, Seychelles; Antonio Silveira, Brazil; Subhash Chandra Garg, India; Masahiro Kan, Japan; Matthew McGuire, United States; Andrei Lushin, Russian Federation. Middle row (left to right): Jose Alejandro Rojas Ramirez, Venezuela, RB; Satu Santala, Finland; Jiandi Ye, China (Alternate); Rionald Silaban, Indonesia; Ursula Müller, Germany; Melanie Robinson, United Kingdom; Khalid Alkhudairy, Saudi Arabia; Alex Foxley, Chile; Franciscus Godts, Belgium. Front row (left to right): Patrizio Pagano, Italy; Ana Afonso Dias Lourenco, Angola; Alister Smith, Canada; Merza Hasan, Kuwait (Dean); Nasir Mahmood Khosa, Pakistan; Jörg Frieden, Switzerland; Frank Heemskerk, The Netherlands; Hervé de Villeroché, France. The Board, through its committees, regularly engages on the effectiveness of the activities of IBRD and IDA with the independent Inspection Panel and the Indepen- dent Evaluation Group, which report directly to the Board. Board achievements of fiscal 2016 Highlights from the committees include the Audit Committee’s work on various proposals to strengthen the financial capacity of IBRD, IDA, and MIGA, and to man- age financial and other risks for the World Bank Group. The Budget Committee provided support to the successful implementation of the budgeting (”W”) process and the Bank Group’s expenditure review, as well as guidance on the financial sus- tainability of the institution. The Committee on Development Effectiveness focused on matters pertaining to the Bank Group’s strategic direction and the quality and results of Bank-supported operations, including the modernization of the World Bank’s Environmental and Social Framework, external reviews of the Independent Evaluation Group, the WBG Forest Action Plan, and the Development Policy Financ- ing Retrospective exercise. The discussions of the Committee on Governance and Administrative Matters focused on the development of a dynamic formula for IBRD shareholding, as part of implementing the 2015 Shareholding Review. The Human Resources Committee considered various activities related to the Bank Group’s human resources strategy, including career development, financial assistance, con- tract architecture, the short-term workforce, strategic staffing, and diversity and inclusion. The focus of the Board is to help the Bank achieve the objectives of ending extreme poverty and promoting shared prosperity in a sustainable manner. During fiscal 2016, this was done in part by engaging with management to build a medium- to long-term view of the role of the World Bank Group in a changing global ­ development landscape, as requested by the Board of Governors in the 2015 Share- MESSAGE FROM THE BOARD 9 holding Review. Board support also builds upon engagement with partners in the World Humanitarian Summit, the 21st Conference of the Parties (COP 21) to the United Nations Framework Convention on Climate Change (UNFCCC), the United Nations Sustainable Development Summit 2015, Financing for Development, the IDA Replenishment process, and the Sustainable Development Goals. The discus- sions have considered both how the Bank has evolved and what further changes it can make to ensure that it remains a premier global development institution, and ways to strengthen its financial position. Discussions will conclude by the 2016 Annual Meetings. The Board uses several approaches to oversee and guide management on achieving the Bank’s objectives. In fiscal 2016, the Board discussed topics impor­ tant to the Bank’s operations, including forced displacement; the implications of low oil prices for the global economy; development data gaps; managing the energy transition to meet growth, poverty, and climate objectives; mainstreaming disaster risk management; development goals in an era of demographic change; global housing; development impact through tourism; financial inclusion; state- owned enterprises; illicit financial flows; and public debt vulnerabilities in low-­ income countries; among others. It also deliberated on important internal activities, such as the future of the World Bank Group (in both the medium and the long term); corporate scorecards; IDA support; nonconcessional borrowing; implementa- tion of the new procurement framework; WBG financial sustainability; the Middle East and North Africa regional strategy; strategic priorities for fragility, conflict, and violence; the Climate Action Plan; and the WBG Gender Strategy. The Board consid- ered the results and operational implications of the World Development Report 2016: Digital ­Dividends and looks forward to the 2017 report on Governance and the Law. Furthermore, the Executive Directors approved several crisis or emergency responses for a wide range of clients, including Ecuador, Iraq, Mozambique, Myan- mar, Pakistan, and Sierra Leone. They also approved the Pandemic Emergency Financing Facility as a concrete action in response to the Ebola outbreak in West Africa. The Board welcomed the Independent Evaluation Group’s Results and Perfor- mance of the World Bank Group 2015 report, as well as the Inspection Panel’s reports concerning Kenya, Kosovo, Mongolia, Nepal, and Uganda. The Board also welcomed Iraq to the International Centre for the Settlement of Investment Disputes (ICSID), the Republic of Nauru to IBRD and ICSID, and congratulated the Republic of Korea for graduating from IBRD. Overall, the Board approved approximately $45.9 billion in financial assistance in fiscal 2016, comprising about $29.7 billion in IBRD lending and about $16.2 billion in IDA support. The Directors also reviewed 75 country engagement products. The Board approved an administrative budget for the World Bank of $2.5 billion for fiscal 2017. 10 THE WORLD BANK ANNUAL REPORT 2016 Ending Extreme Poverty and Promoting Shared Prosperity in a Sustainable Manner T he work of the World Bank is anchored in its goals: to end extreme poverty—reducing the share of the global population living in extreme poverty to 3 percent by the year 2030—and to promote shared prosperity—increasing the income of the bottom 40 percent of the population. Both of these goals must be met in a sustainable manner. World Bank projections suggest that for the first time in history, the number of people living in extreme poverty has fallen below 10 percent of the global popula- tion. Despite this good news, hundreds of millions of people still live on less than $1.90 a day, the current benchmark for extreme poverty. The work is far from over, and a number of challenges remain if the comprehensive vision for global develop- ment—as articulated by the Sustainable Development Goals (SDGs), the 2030 Agenda for Sustainable Development, and the World Bank’s own goals—is to be met. The economic growth that drives reductions in extreme poverty continues to disappoint, and substantial downside risks to the global economy remain, such as weak demand, tighter financial markets, softening trade, persistently low prices for oil and other commodities, and volatile capital flows. The world also faces complex and critical threats to long-term prosperity, including regional conflicts and localized fragility that have forcibly displaced millions of people; pandemics and other health risks across regions; and the effects of climate change, which may bring extreme weather shocks and disruptions to food security in many countries. All of these risks will most affect the poor and vulnerable. At the same time, global development trends have changed dramatically. The world is much more prosperous, and its center of economic gravity is shifting Children at a school in the Lao People’s Democratic Republic enjoy clean water to wash in before lunch. Investing in young children is one of the smartest investments a country can make. (© Bart Verweij/World Bank) World Bank support to micro and small businesses in the Arab Republic of Egypt, like this sewing factory in the city of Luxor, helped to provide 70,000 jobs, many to youth and women. (© Dominic Chavez/World Bank) toward emerging economies. Private investment now dominates capital transfers worldwide, and domestic resource mobilization is increasingly important relative to official development assistance, particularly in middle-income countries. The world is much more interconnected, and the economic, social, and environmental dimen- sions of development will require much more integrated, multisectoral approaches to succeed. The World Bank is uniquely suited to support the global development agenda in the face of these unprecedented challenges and changes to the global environment. The Bank remains a committed partner to help countries over the long term, and works to develop strategies, operations, and innovative financing that are tailored to each country’s unique needs. The institution is organized to work across the entire development spectrum—at the country, regional, and global levels—to facilitate coordinated action for solutions that support poverty reduction and promote inclu- sive prosperity. This chapter describes how the World Bank worked with its partners this fiscal year across intersecting and complex sectors to help countries find solutions to their toughest development challenges. Promoting inclusive and equitable economic growth Equitable policies and institutions help every country’s poorest people to benefit from economic growth. The World Bank supports policy makers to reach well- evidence-based decisions that promote equity and inclusion, sustainable informed, ­ economics, public sector transparency and efficiency, productivity, and finan- macro­ cial sector deepening and stability—all foundational elements for reducing poverty and promoting inclusive growth. Access to economic opportunities and high-quality basic services is fundamental to eliminating extreme poverty and building shared prosperity. Through a combina- tion of strong analysis and advice, financial services, lending, and convening power, the Bank helps clients to address challenges to equity and inclusion. This support can help clients to strengthen their evidence base for making informed policy deci- ventions that are equitable, efficient, and reach the poor. sions, and can target inter­ national Development Association (IDA) support- For example, a grant from the Inter­ 12 THE WORLD BANK ANNUAL REPORT 2016 monize and Modernize Living Conditions Surveys is ing the Regional Program to Har­ helping the eight member countries of the West African Economic and Monetary Union to improve the quality and frequency of the data they collect. In Chile, a Bank operation supports reforms that focus on improving access to and the quality of education, as well as enhancing the measuring of poverty and targeting of social programs. Sustainable macroeconomic and fiscal policies create a supportive enabling envi- ronment for private sector–led growth, and they provide the basis for effective development planning and public spending. The Bank helps clients to gauge the right mix of fiscal management, debt policies, and growth. For example, the Mexico Public Expenditure Review (PER) identified a menu of efficiency options to inform the short- and medium-term fiscal consolidation efforts of the Mexican govern- ment. Like PERs conducted for other countries, the Mexico initiative will help to sustain a continuing policy dialogue to strengthen fiscal management and overall public sector effectiveness. More efficient public resource mobilization and spending allows governments to improve service delivery. The Bank assists clients in improving public sector effi- ciency, such as the prioritization of spending, better budget management and con- trol, and the elimination of constraints on the efficient use of domestic resources. These efforts include helping client countries to build fair and efficient tax systems and increase revenues to government treasuries. This year the Bank launched a Global Tax Team to bolster cutting-edge work on taxes, liaise with other global institutions, and build a more coordinated dialogue on international tax issues. In ­ addition, the recently launched Platform for Cooperation on Tax will formalize col- laboration between the Bank, International Monetary Fund (IMF), Organisation for Economic Co-operaton and Development (OECD), and United Nations (UN), and aims to boost the ability of developing countries to build stronger tax systems and ensure that their interests are heard. Integrated economies help to promote sustained economic growth with strong contributions from the private sector, which help to raise the incomes of the poor and create more and better-paying jobs. The Bank, in collaboration with the Inter- national Finance Corporation (IFC) helps to promote open and competitive markets and foster an enabling environment for private investment. Among recent efforts, the Bank provided programmatic advice on productivity-led growth in Brazil, a competition assessment in Kenya, and a policy analysis of the implications of the Trans-Pacific Partnership for Vietnam. In addition, Bank financing is supporting the development of export-oriented sectors in the former Yugoslav Republic of Mace- donia through broad-investment climate reforms and incentives for investment and manufacturing upgrades. Multicountry operations include the Burkina Faso and Côte d’Ivoire Regional Trade Facilitation and Competitiveness Credit, which aims to reduce transaction costs between these countries by reforming the transport and customs sectors. The Bank’s convening services have also facilitated the develop- ment of a new investment law in Myanmar. Inclusive, efficient, and stable financial systems contribute to faster growth and poverty reduction. Removing impediments—such as financing gaps for firms, the poor, infrastructure, and housing—is a critical part of the Bank’s work. For exam- ple, the Bank serves as a technical partner to help countries shape their National Financial Inclusion Strategies by coordinating stakeholders’ efforts and prioritizing resources, as in Pakistan, where the Bank and IFC have been working with the State Bank of Pakistan. The Bank is also actively working with countries to strengthen transparency and accountability and to reduce illicit financial flows, as part of a global effort. It is working to improve access to information on the beneficial owners 2016 OVERVIEW 13 Bus rapid transit—like the World Bank–supported TransMilenio system in Bogotà, Colombia—is a relatively fast, efficient, and climate-friendly way to move commuters through increasingly congested cities. (© Dominic Chavez/World Bank) of assets for public authorities, to strengthen the exchange of tax information, and to help governments detect money laundering. These efforts also aim to ensure that clean public officials and businesses are recognized, while corrupt and criminal ones are sanctioned. The Bank also partners with member countries to strengthen key financial insti- tutions to support financial stability and economic growth. Through the Reserves Advisory and Management Program (RAMP), the Bank is working with over 60 member institutions—central banks, national pension funds, and sovereign wealth funds—to improve the management of foreign reserves and other financial assets. A stable and liquid foreign reserves portfolio is critical to a central bank’s financial soundness. The Bank works with member governments at the national and subna- tional levels to build capacity to develop and implement debt management strate- gies according to best practice. Effective public debt management is a cornerstone of financial stability and sustainable fiscal policy. Improving infrastructure quality through public-private partnerships The World Bank aims to help governments make informed decisions about improv- ing access to and the quality of infrastructure services, which can include, where appropriate, using public-private partnerships (PPPs). This approach involves strengthening data collection, building capacity, developing and testing tools, pro- moting disclosure, and encouraging engagement with all relevant stakeholders. During fiscal 2016, several tools were developed—often in collaboration with other multilateral development banks or development partners—to support good decision making by policy makers on infrastructure projects. These include an 80-country survey on PPP procurement, a country diagnostic tool, a tool developed with the IMF disclosure frame- to assess the potential fiscal impact of PPPs, a prioritization tool, a ­ work for PPPs, an analysis of how gender can be incorporated into PPP contracts, and a French-language version of a PPP Massive Open Online Course (MOOC). In April 2016, the World Bank helped to organize with the other multilateral development banks, and in partnership with the United Nations, the first Global Infrastructure Forum. This was the first time that the heads of all of the multilateral 14 THE WORLD BANK ANNUAL REPORT 2016 From billions to trillions to action The 2015 “From Billions to Trillions” (B2T) statement was presented by the World Bank Group (WBG), International Monetary Fund (IMF), and regional multilateral development banks (MDBs) at the Third International Conference on Financing for Development in Addis Ababa, Ethiopia. The statement pledged to leverage the billions of dollars in lending commitments through the MDBs’ balance sheets in order to mobilize and catalyze trillions more in public and private sector dollars. Since then, B2T has become the backbone of discussions on financing for devel- opment (FFD) in most international forums. Shareholders expect the Bank Group to deliver on this pledge, and to take the lead in establishing and scaling up new approaches and financing solutions to mobilize additional resources in support of the goals of the 2030 Agenda for Sus- tainable Development. Throughout fiscal 2016, the Bank Group has remained closely engaged with the FFD agenda as a core member of the United Nations Interagency Task Force on Financing for Development, which is responsible for the follow-up and review progress on commitments made in Addis. Additionally, two important initiatives were launched in support of FFD: The joint World Bank– IMF tax initiative, to build in-country domestic resource mobilization capacity, and the MDB Global Infrastructure Facility focused on expanding the universe of infrastructure projects that have the potential to mobilize private investment. The Bank Group is also actively engaged with the private sector in exploring public-private alignment opportunities by organizing an annual Development Finance Forum. Moving forward, a suite of indicators to measure and evaluate mobilization efforts across WBG programs is being developed for fiscal 2017 to create incentives to increase our mobilizing and catalyzing ability at every level of our client and partner engagement. banks came together to discuss infrastructure, reflecting the topic’s importance and the commitment to multilateral collaboration. Other key participants included devel- opment partners and representatives of the Group of Twenty (G-20), Group of Twenty-Four (G-24), and Group of Seventy-Seven (G-77); the OECD; and the Global Infrastructure Hub. The meeting set out actions that the participants will take over the next year to leverage more—and better—public and private investment in infra- structure. The next Global Infrastructure Forum will be held in 2017. This year the Global Infrastructure Facility approved its first project (hydropower in the Solomon Islands) and four planning grants in Brazil, Côte d’Ivoire, the Arab Republic of Egypt, and Georgia. Support by the Public-Private Infrastructure Advisory Facility to building capacity and knowledge increased by over 60 percent during the year, with a strong focus on Sub-Saharan Africa and the poorest countries. Ensuring sustainability in key drivers of development Together, the adoption of the SDGs in September 2015 and the signing of the Paris Agreement on climate change in April 2016 mark a clear recognition by the interna- tional community that economic growth, poverty reduction, and environmental sus- tainability are inextricably linked and essential for achieving sustainable development. With 78 percent of the world’s poor people living in rural areas and most depend- ing on agriculture for their livelihoods, increasing farm productivity and resilience, strengthening farmers’ links to markets, and providing affordable food are proven ways to end poverty and boost shared prosperity. The Bank’s agriculture program is focusing on these areas, giving more attention to climate-smart agriculture, improv- ing nutrition, strengthening agricultural value chains, and creating jobs. For example, support in Senegal is facilitating the adoption of 14 new, high-yielding, drought- 2016 OVERVIEW 15 The West Africa Agricultural Productivity Program is helping 13 countries to build sustainable food systems that create jobs for youth and produce nutritious food for farmers to sell and people to eat. The project also supports improvements through agricultural research, as at this center in Ghana. (© Dasan Bobo/World Bank) tolerant varieties of grains. A project in Uganda supports the production of micro­ nutrient-rich crops that are adapted to local preferences and growing conditions, as well as a seed bank for bio-fortified crops. In Nepal, a project supports labor-saving technologies, such as improved solar dryers to preserve vegetables and fruits. In the energy sector, the Bank’s work is aligned with Sustainable Energy for All, an initiative that aims to achieve three goals by 2030: universal energy access, doubling the rate of improvement in energy efficiency, and doubling the share of renewable energy in the global energy mix. In Bangladesh, for example, a successful solar home systems project has reached people in rural communities, with 3.5 mil- lion households now receiving electricity from their rooftops. With the fall in oil and other commodity prices, many resource-rich countries have sought Bank assistance in the extractives sector to help address price volatility, diversify their economies, strengthen sector governance, increase benefit sharing, and ensure environmental and social sustainability. The World Bank also helps countries to factor in to their development plans the value and job-creating potential of natural resources—from ocean wealth to forests and watersheds—along with the associated costs of environmental degradation, pollution, and resource scarcity. In Morocco, for example, a green growth develop- ment policy operation supports measures to improve the sustainability of sectors including fisheries, agriculture, and tourism—all of which are critical sources of employment in poor, rural communities and significantly affected by the depletion of natural resources. In agriculture, for instance, the program supports better groundwater management practices, soil conservation, and more-effective meteo- rological information for farmers. In fiscal 2016, the Bank launched a five-year Forest Action Plan for the World Bank Group aimed at making the sustainable management of forests an integral part of development and climate action. The plan introduces the concept of “forest-smart” interventions, and takes a holistic look at forest land- scapes to avoid the erosion of forest capital. Transportation and information and communication technologies connect peo- ple to jobs, markets, and social services, and are at the core of global discussions on the SDGs, climate change, and road safety. Yet accessibility, efficiency, and safety remain critical challenges to realizing the full potential of sustainable mobility. Today 16 THE WORLD BANK ANNUAL REPORT 2016 1 billion people, for example, still lack access to an all-weather road, and 3 billion, to the Internet. Efforts to build safer, cleaner, and more-efficient transportation systems include expanding bus ridership by 40 percent in Wuhan, China, and improving road safety in India. Technology and data management are also helping to better map travel patterns and users’ needs, engage citizens, and improve the quality of mass transit systems. Expanding access to broadband service is also essential. In developing countries—which account for 90 percent of urban growth—there is a window of opportunity to build climate-smart cities. The Bank’s Urbanization Reviews offer a framework for city leaders to make tough decisions on development in their cities by providing diagnostic tools to identify policy distortions and analyze investment priorities. Coordinated by the World Bank and supported by multilateral development banks, UN organizations, think tanks, and various city networks, the Global Platform for Sustainable Cities, launched this year, is a knowledge-sharing program that provides access to cutting-edge tools and promotes an integrated approach to sustainable urban planning and financing. In the water sector, the Bank continues to pursue the vision of a Water-Secure World for All, with a focus on advancing universal access to sanitation and water security. Working across sectors, for example, the Bank’s new approach to rural san- itation in Egypt, Haiti, India, and Vietnam focuses on helping governments to lever- age national programs for more local and accountable delivery, as well as behavior change. Further, a new action plan, developed by the Lake Chad Basin Commission, aims to empower Lake Chad communities to adapt to the urgent challenges exacer- bated by climate change, and to consolidate Lake Chad’s contribution to regional food security. This work was supported by reports such as High and Dry: Water, Climate Change, and the Economy, which projects potentially significant economic impacts from changes to the water cycle. The report is a call for better policies, which recog- nize the fundamental importance of this resource, highlighting the fact that health, energy, food, cities, and jobs depend heavily on water. The Bank, in partnership with the United Nations, also launched a heads-of-state panel on water tasked with mobi- lizing action and financing toward the goal of ensuring access for all to sanitation and water. Helping countries to adapt to a changing climate The World Bank Group has aggressively stepped up its climate action, given the intrinsic link between climate change and poverty. The threat to poor people posed by climate change is sharply illustrated in the publication Shock Waves: Managing the Impacts of Climate Change on Poverty, released ahead of the 21st Conference of Parties (COP 21) climate change talks in Paris. The report warns that without rapid action, climate change could push more than 100 million people into poverty by 2030. In the wake of the Paris Agreement, the World Bank Group developed a Climate Change Action Plan, marking a fundamental shift by integrating climate change as a priority across all of the Bank’s strategies and operations. The plan lays out ambi- tious targets and accelerated actions to tackle climate change over the next five years. Among the targets are assisting developing countries in adding 30 gigawatts of renewable energy—enough to power 150 million homes—to the world’s energy capacity, and bringing early-warning systems to 100 million people. A key focus of the plan is to do more to help countries adapt to a changing cli- mate: For example, by developing climate-smart agriculture investment plans for at least 40 countries by 2020 and expanding the use of climate and disaster risk 2016 OVERVIEW 17 Kazakhstan’s Technology Commercialization Project provided a grant to a group of scientists who are developing human DNA test systems to treat heart disease in the Central Asian region. (© Shynar Jetpissova/World Bank) screening tools beyond projects funded by IDA. The Climate Change Action Plan reinforces the pledge for a one-third increase in climate financing across the World Bank Group, potentially to $29 billion each year, with the support of its members. Promoting opportunity through investments in human capital No society can achieve its potential or meet the challenges of the 21st century with- out the full and equal participation of all its people—which requires investments in human capital through education, health care, social protection, and jobs. The World Bank works to support equal chances for people to live healthy, prosperous, and longer lives; secure productive and inclusive jobs; and create opportunities and be resilient in the face of economic, health, and climatic shocks, and other risks. All of these conditions are necessary to break the intergenerational transmission of pov- erty and to take advantage of the demographic trends in many countries where poverty is concentrated. The overall goal of the Bank’s work in health, nutrition, and population is to support developing countries in building strong and resilient health care systems; achieving universal health care coverage; and ensuring that all people have access to quality, essential health services and are not pushed into poverty because of health care costs. Key areas of focus include ending preventable maternal and child mortal- ity by 2030; ending childhood stunting caused by chronic malnutrition; halting the spread of preventable communicable and noncommunicable diseases; and increas- ing outbreak preparedness. This year, drawing from the lessons of the Ebola crisis in West Africa, the World Bank Group partnered with the World Health Organization, the private sector, and development partners to develop the Pandemic Emergency Financing Facility (PEF), launched during the 2016 Group of Seven (G-7) Ise-Shima Summit. The PEF will enable a timely surge of money and support to the poorest countries to help stop an outbreak from becoming another deadly and costly pandemic like Ebola. Through the PEF, the World Bank will issue the first pandemic bonds and create a new market for pandemic risk insurance. 18 THE WORLD BANK ANNUAL REPORT 2016 Economy, efficiency, and effectiveness: Ensuring value from WBG operations In working to end extreme poverty and promote shared prosperity in a sustainable manner, the World Bank Group seeks the greatest development impact from its available resources. In other words, it is committed to achieving the highest “value for money” from its operations. In recent years, it has made progress to this end on many fronts. • Enhancing the economy of operations. The Bank Group has undertaken an expansive Expenditure Review, through which it identified savings of $400 million in the internal administrative budget. In addition, it has launched innovative, yet prudent, financial prac- tices to optimize its balance sheets. • Promoting greater efficiency. The Bank Group has likewise instituted significant organi- zational changes. These began in 2013 with an internal restructuring to ensure that WBG expertise is able to address our clients’ pressing development challenges. Further, it has introduced the “W” process, an annual strategic planning and budget exercise (see page 60). In addition, to improve its ability to be nimble and responsive to clients, the Bank Group continues to simplify operational policies and procedures and to reform human resource policies to manage talent. • Ensuring development effectiveness. The Bank Group maintains a suite of tools at the corporate, institutional, country, and project levels to monitor progress and risks to results on the ground. For example, it recently instituted a risk management framework (Systematic Operations Risk-Rating Tool [SORT]) for its portfolio of operations. The Bank Group con- tinues to innovate its services to focus on results, including use of the Program-for-Results financing instruments. These examples are among the multiple initiatives under way or completed for the Bank Group to learn from and improve its operations in order to have the most effective tools available for meeting the needs of global development. Through the Global Financing Facility (GFF) in support of Every Woman Every Child—launched at the Third International Conference on Financing for Develop- ment, Addis Ababa, Ethiopia, in July 2015—the Bank is supporting country-led efforts to improve the health of women, children, and adolescents. The GFF unites resources from the countries themselves with those from international donors and the private sector, and thus helps to scale up support for evidence-based interven- tions and ensure sustainable financing as the countries transition from low- to mid- dle-income status. In its first year of operation, the GFF Trust Fund supported a dozen countries representing nearly half of the worldwide financing gap for univer- sal women’s, children’s, and adolescent health care. The Bank is also scaling up investments in the early years of life—across nutrition, early stimulation, and safe environments—with more than $3 billion in financing during the past two years alone and $6 billion since 2000. Recent scientific and economic studies show that early childhood nutrition and stimulation can have a profound impact on brain development and on health, learning, and future earnings. Underscoring a commitment to invest in young children, the Bank has also launched innovative partnerships over the past year, including the Power of Nutrition and the Early Childhood Development Action Network with UNICEF, foundations, and other development partners. As the world’s leading international financier of education in developing coun- tries, the Bank is committed to helping achieve inclusive and quality education for all. The Bank is building on a successful track record in health care by increasingly 2016 OVERVIEW 19 World Bank support for installment payments for housing reconstrution is helping residents affected by the devastating earthquakes in Nepal to rebuild their lives in the face of many challenges. (© Laxmi Prasad Ngakhusi/World Bank) using results-based financing to help countries construct educational systems with the incentives necessary for reaching the most marginalized children and youth. Recognizing the importance of empowering girls and women, the Bank announced in April 2016 that it would provide $2.5 billion over five years in education programs that will directly benefit adolescent girls. The Bank also plays a leading role in efforts to expand social protection programs and build the resilience of the poorest and most vulnerable people in the face of shocks. A joint statement by the World Bank Group and the International Labour Organization laid out a shared vision of social protection for all—a world where any- one who needs social protection can access it at any time. The Bank Group’s invest- ments in social safety nets—more than $1.7 billion over the past five years—are having direct, positive impacts on poor families worldwide through the use of cash transfers, labor-intensive public works, and school feeding programs. Cash transfers are increas- ingly seen as an important safety net tool for forcibly displaced people living in fragile, conflict, or violent situations. As of 2015, every country in the world has at least one social safety net program in place, benefiting more than 1.9 billion people. At the South-South Learning Forum in Beijing, November 2015, around 250 pol- icy makers from 75 countries gathered to discuss, share, and learn from emerging knowledge and practical innovations on social protection in urban areas, which are home to an increasing share of the world’s poorest people. Safety nets can play a key role in identifying and supporting the urban poor, connecting them to social ser- vices and job opportunities. More than 200 million people worldwide—many of them youth—are currently unemployed and looking for work. To accelerate progress toward good jobs and economic growth, the Bank is conducting in-depth Jobs Diagnostics in at least 15 countries aimed at helping them to create more, better, and more inclusive jobs through skills building, work incentives, greater labor mobility, and other labor mar- ket reforms. Closing gender gaps for greater economic opportunity Gender biases can constrain both males and females, but they have historically dis- advantaged girls and women more. Notably, women lag behind on most measures 20 THE WORLD BANK ANNUAL REPORT 2016 Meeting diverse client demands with Reimbursable Advisory Services Through its Reimbursable Advisory Services, the World Bank provides customized analytical and advisory services that are requested and paid for by clients. These services enable the Bank to meet client demand for its advice that cannot be funded through the Bank’s financial resources. Reimbursable Advisory Services are in high demand, particularly in middle- and high-income countries. Eligible clients are all of the Bank’s member states, their states and municipalities, state-owned enterprises, civil society organizations, and other multilateral agencies. Reimbursable Advisory Services are highly flexible, and they comprise a wide variety of activ- ities, including technical assistance and training, research and analysis, workshops, conferences, and preparation and implementation support for client-financed projects. Today, the Bank has over 200 active engagements in more than 60 countries in all of its six regions. In fiscal 2016, the Bank delivered about 223 Reimbursable Advisory Services in over 40 countries. Revenues from these services amounted to $91.5 million in fiscal 2016, reflecting the continued strong client demand in recent years. Overall, revenues have grown by about 300 percent since fiscal 2010. of economic opportunity, and this holds back not just individuals but entire econo- mies. Closing gender gaps can help countries to increase productivity and improve prospects for the next generation. The World Bank works with public and private sector clients to close these gaps. Progress in key indicators—such as girls’ school enrollment and completion rates, maternal mortality, labor force participation, asset ownership, and access to financial services—depends on investment in multiple sectors, including water and sanita- tion, transportation, and finance. This requirement is reflected in the new World Bank Group Gender Strategy (FY16–23): Gender Equality, Poverty Reduction, and Inclusive Growth, which focuses on approaches and interventions that achieve meaningful results. The strategy prioritizes four key objectives: improving human endowments through health care, education, and social protection; removing con- straints to more and better jobs, including tackling skills gaps and occupational sex segregation, and addressing issues related to unpaid care; removing barriers to women’s ownership and control of land, housing, technology, and finance; and enhancing women’s voice and agency while engaging men and boys in that effort. The Bank continues to scale up commitments and partnerships in order to collect and distill more and better sex-disaggregated data. It is working with UN agencies and others to gather such data, including those on vital statistics, asset ownership, time use, labor, health care, and the use of financial services. Gender data dissemi- nation is supported through the Bank’s newly updated and expanded Gender Data Portal. To help countries identify what works and what does not in order to close eco- nomic gender gaps, four regional Gender Innovation Labs are building the evidence base across different contexts. Seventy-five impact evaluations are under way on skills, land rights, access to infrastructure, labor force participation, entrepreneur- ship, youth employment, gender-based violence, and teenage pregnancy. The Bank is also working to close the credit gap, estimated at about $300 billion globally, for formal, women-owned, small and medium enterprises, as well as the gender gap in financial account ownership. Confronting the causes and consequences of conflict and fragility Some 2 billion people—more than one-quarter of the global population—live in countries where development outcomes are affected by fragility, conflict, and 2016 OVERVIEW 21 violence. The challenge is widespread and complex, including protracted forced ­ displacement, violent extremism, and citizen security. Building on its experience in conflict-sensitive development, the World Bank’s approach aims to address these issues in the broader context. Activities in fiscal 2016 also focused on developing innovative financing solutions, including those with private sector involvement, to ensure rapid response to global crises, and on reinforcing strategic partnerships between humanitarian and development actors. World Bank operations are supported by analytical work to address fragility, con- flict, and violence. Diagnostic tools for conflict-sensitive programming are included, with 46 risk and resilience assessments conducted to inform the Bank Group’s Sys- tematic Country Diagnostics and Country Partnership Frameworks. A priority for fiscal 2016 was to strengthen the development response to forced displacement by conducting analytical work to establish a framework for operational engagement as well as develop a joint approach among seven multilateral development banks. To promote dialogue and knowledge sharing, the World Bank hosted the global Fragil- ity Forum in early 2016, engaging with more than 100 organizations. Collaboration with the following partners supports effective delivery: the Global Program on Forced Displacement, the UN–World Bank Fragility and Conflict Partnership Trust Fund, the State and Peace-Building Fund, and the Korea Trust Fund for Economic and Peacebuilding Transitions. The Bank supports operations that aim to address the drivers of fragility, includ- ing more assistance for the vulnerable who are displaced by conflict. In Africa, the Bank provided IDA credits totaling almost $250 million to forcibly displaced people and host communities in the Democratic Republic of Congo, Djibouti, Ethiopia, Uganda, and Zambia. The increased funding in the region recognizes that forced displacement is a global challenge. With this funding, the Bank has delivered on promises made by President Jim Yong Kim and UN Secretary-General Ban Ki-moon during a joint mission to Africa’s Great Lakes region in May 2013, and to the Horn of Africa in October 2014. The two leaders have continued their collaboration this fiscal year, traveling together in March 2016 to Jordan, Lebanon, and Tunisia to promote peace and development in the Middle East and North Africa. Strengthening engagement and support for transitional processes during peace- ful transfers of political power and other “turnaround” moments is critical to ensure that countries do not return to conflict. IDA’s turnaround regime provides a higher level of financing to countries with significant opportunities for building stability and resilience to accelerate their transition out of fragility. In fiscal 2016, Guinea- Bissau and Madagascar were determined to be eligible, based on the evidence of government commitment to a reform agenda and shared understanding among key development partners on increasing support to the country, and $20 million and $230 million were allocated, respectively. The World Bank Global Platform on Addressing Sexual and Gender-Based Vio- lence (SGBV) was launched in March 2015 to provide services to survivors of SGBV, contribute to prevention, raise public awareness, and build the capacity of client countries through South-South knowledge sharing. The platform includes innova- tive pilots in the Democratic Republic of Congo, Georgia, Nepal, and Papua New Guinea. After a global learning tour in 2015 with representatives of all projects, the platform is organizing regional learning tours in 2016 for clients to learn from regional best practice. To learn more about the sectors in which the World bank works, visit worldbank .org/topics. 22 THE WORLD BANK ANNUAL REPORT 2016 The Regions T he World Bank today operates out of more than 130 offices worldwide. An increased presence in client countries is helping the Bank to better understand, work more effectively with, and provide more timely services to its partners in those countries. Ninety-six percent of Country Directors/Country Managers and 40 percent of staff are based in countries within each of the six geographical regions. The following section highlights the major goals achieved, projects undertaken, strategies revised, and publications produced in fiscal 2016. For more information, visit worldbank.org/countries. TABLE 1 FISCAL 2016 COMMITMENTS IBRD IDA TOTAL IBRD/IDA TOTAL IBRD/IDA REGION ($ MILLIONS) ($ MILLIONS) ($ MILLIONS) SHARE (PERCENT) Africa 669 8,677 9,346 20 East Asia and Pacific 5,176 2,324 7,500 16 Europe and Central Asia 7,039 233 7,272 16 Latin America and the Caribbean 8,035 183 8,218 18 Middle East and North Africa 5,170 31 5,201 11 South Asia 3,640 4,723 8,363 19 Total 29,729 16,171 45,900 100 TABLE 2 FISCAL 2016 DISBURSEMENTS IBRD IDA TOTAL IBRD/IDA TOTAL IBRD/IDA REGION ($ MILLIONS) ($ MILLIONS) ($ MILLIONS) SHARE (PERCENT) Africa 874 6,813 7,687 21 East Asia and Pacific 5,205 1,204 6,409 18 Europe and Central Asia 5,167 365 5,532 15 Latin America and the Caribbean 5,236 303 5,539 16 Middle East and North Africa 4,427 44 4,471 13 South Asia 1,623 4,462 6,085 17 Total 22,532 13,191 35,723 100 Portfolio of projects under implementation as of June 30, 2016: $207.3 billion. Africa A lthough Africa has made progress over the course of the past 10 years—in terms of both economic growth and poverty reduction—the region now faces significant challenges mainly because of the global decline in commodity prices and region- specific risks. Growth in Africa slowed to 3.0 percent in 2015, down from 4.5 per- cent in 2014 and the slowest pace since 2009, and it is projected to drop further, to 2.5 percent in 2016. Per capita income growth was even more modest, weighed down by population growth. There is variation across countries, particularly between resource-rich and non–resource- rich countries, but overall, the region’s economic growth trend remains below pre–financial crisis levels. Slower growth deepens the challenge of reducing poverty. Despite progress, the share of the population living on $1.90 a day or less remains very high, estimated at 42.7 per- cent in 2012. World Bank assistance The Bank approved $9.3 billion for the region for 109 projects this fiscal year, including $669 million in IBRD loans and $8.7 billion in IDA commitments, of which $200 million was from the IDA Scale-up Facility. Key focus areas included raising agricultural productivity, increasing access to affordable and reliable energy, building resilience to climate change, strengthening fragile and ­conflict-affected areas, and promoting good-quality education. The Bank also made important contributions to knowledge this fiscal year. According to Poverty in a Rising Africa, the incidence of poverty in the region may be lower than current estimates indicate. Because of population growth, however, the number of Africans living in extreme poverty is at least 50 million higher today than it was in 1990. Boosting agricultural productivity Agriculture accounts for 65 percent of employment in Africa. At a time when some countries are facing challenges from the decline in commodity prices, developing this sector can help to diver- sify economies. To improve the lives of 2 million of the estimated 50 million pastoralists in the region, the $248 million Regional Sahel Pastoralism Support Project aims specifically to improve access to essential productive assets, services, and markets in six countries—Burkina Faso, Chad, Mali, Mauritania, Niger, and Senegal—and to improve the local response to pastoral crises and emergencies. Most of the beneficiaries of the six-year project will be women and youth. Increasing affordable and reliable energy Africa continues to lag behind other regions in access to electricity—an irony given the conti- nent’s huge potential for renewable energy, including hydropower, solar, and geothermal. Increasing access to affordable, reliable, and sustainable energy is a primary objective of the Bank’s work in Africa. This fiscal year the Bank provided $700 million for the Sankofa Gas Proj- ect in Ghana, which will develop offshore natural gas resources located 60 kilometers from the western shore. Gas from the project will fuel up to 1,000 megawatts of domestic power gen- 24 THE WORLD BANK ANNUAL REPORT 2016  IERRA LEONE © Dominic Chavez/World Bank COUNTRIES ELIGIBLE FOR WORLD BANK BORROWING* Angola Democratic Republic Guinea-Bissau Mozambique South Africa Benin of Congo Kenya Namibia South Sudan Botswana Republic of Congo Lesotho Niger Swaziland Burkina Faso Côte d’Ivoire Liberia Nigeria Tanzania Burundi Equatorial Guinea Madagascar Rwanda Togo Cabo Verde Ethiopia Malawi São Tomé and Príncipe Uganda Cameroon Gabon Mali Senegal Zambia Central African Republic The Gambia Mauritania Seychelles Chad Ghana Mauritius Sierra Leone S Comoros Guinea *as of June 30, 2016 eration, about 40 percent of Ghana’s currently installed generation capacity. The project will leverage $7.9 billion in private sector investments, yielding huge potential fiscal returns and benefits to Ghana. Adapting to climate change and building climate resilience Climate change, especially changes in temperature and rainfall patterns, is projected to hit Africa’s poorest people particularly hard. Investing in adaptation techniques and disaster risk management therefore remains a top priority for the Bank. The Africa Climate Business Plan, presented at the 21st Conference of Parties (COP 21) climate change talks in Paris, December 2015, laid out a work program to help countries both mitigate and adapt to the effects of cli- mate change. In April 2016, the World Bank, in collaboration with partners, agreed to establish the West Africa coastal observatory to enhance the knowledge base on coastal erosion, flood- ing, and other climate change hazards that West Africa’s coastal and island nations face. The observatory will build national and regional capacity and support countries’ efforts to strengthen the resilience of their coastal areas to climate change. Supporting fragile and conflict-affected countries This fiscal year IDA approved turnaround resources for Guinea-Bissau and Madagascar. These funds help fragile and conflict-affected states to address the roots of fragility and support their transition to functioning states. In Guinea-Bissau and Madagascar, they will support key govern- ment reform initiatives, including the strengthening of a transparent and accountable public financial management system. Regional initiatives by the World Bank and the United Nations in the Great Lakes, the Sahel, and the Horn of Africa are supporting cross-border efforts to address the underlying causes of fragility. The Bank is addressing the pressing issue of displacement in the Great Lakes and the Horn of Africa with two operations to help countries manage ongoing crises through support for forcibly displaced people and their host communities. Fostering the development of human capital Every year for the next decade, 1 1 million African youth will enter the job market. They must be equipped with the right skills and training in order to succeed. To help bridge the gap between what African students are learning and the skills employers seek, the Bank has launched initiatives to boost STEM (science, technology, engineering, and mathematics) education across the region. A $140 million Africa Higher Education Centers of Excellence project is funding 24 competitively selected centers in institutions of higher education in Eastern and Southern Africa. It will strengthen their capacity and focus on producing excellent training, applied research, and knowl- edge transfer in priority sectors such as agriculture, health, education, and applied statistics. o View data THE REGIONS 25 FIGURE 1 AFRICA IBRD AND IDA LENDING BY SECTOR • FISCAL 2016 SHARE OF TOTAL OF $9.3 BILLION Water, Sanitation, and Flood Protection 5% 5% Agriculture, Fishing, and Forestry Transportation 7% 9% Education Public Administration, Law, and Justice 20% 17% Energy and Mining Information and Communications <1% 3% Finance Industry and Trade 4% 31% Health and Other Social Services TABLE 3  AFRICA REGIONAL SNAPSHOT CURRENT INDICATOR 2000 2010 DATAa TREND Total population (millions) 668 874 1,001 Population growth (annual %) 2.7 2.8 2.7 GNI per capita (Atlas method, current US$) 504 1,280 1,627 GDP per capita growth (annual %) 0.9 2.7 0.2 Population living below $1.90 a day (millions) 399b 398 389 Life expectancy at birth, females (years) 51 58 60 Life expectancy at birth, males (years) 49 55 57 Youth literacy rate, females (% ages 15–24) 62 66 66 Youth literacy rate, males (% ages 15–24) 75 76 76 Carbon dioxide emissions (megatons) 556 720 753 MONITORING THE SUSTAINABLE DEVELOPMENT GOALS (SDGs) SDG 1.1 Extreme poverty (% population below $1.90 a day, 2011 PPP) 57.1b 46.1 42.7 SDG 2.2 Prevalence of stunting, height for age (% children under 5) 43 38 36 SDG 3.1 Maternal mortality ratio (modeled estimate, per 100,000 live births) 846 625 547 SDG 3.2 Under-5 mortality rate (per 1,000 live births) 154 101 83 SDG 4.1 Primary completion rate (% relevant age group) 55 68 69 SDG 5 Ratio of female to male labor force participation rate (modeled ILO estimate, %) 81 84 84 SDG 5.5 Proportion of seats held by women in national parliaments (% total) 12 19 24 SDG 6.1 Access to safe drinking water (% population with access) 55 63 68 SDG 6.2 Access to basic sanitation facilities (% population with access) 25 28 30 SDG 7.1 Access to electricity (% population) 26 32 35 SDG 7.2 Renewable energy consumption (% total final energy consumption) 73 71 70 SDG 17.8 Individuals using the Internet (% population) 0.5 10 22 Note: ILO = International Labour Organization; PPP = purchasing power parity. The most current data available between 2011 and 2015; visit http://data.worldbank.org for data updates. a.  b.  2002 data. THE REGIONS 26 FIGURE 2 AFRICA IBRD AND IDA LENDING BY THEME • FISCAL 2016 SHARE OF TOTAL OF $9.3 BILLION Urban Development 14% 2% Economic Management Environment and Natural 2% Resources Management Trade and Integration 2% Financial and Private 16% Sector Development Social Protection and Risk Management 22% 16% Human Development Social Development, Gender, and Inclusion 4% 10% Public Sector Goverance Rural Development 11% 1% Rule of Law TABLE 4  AFRICA REGIONAL COMMITMENTS AND DISBURSEMENTS FOR FISCAL 2014–16 COMMITMENTS ($ MILLIONS) DISBURSEMENTS ($ MILLIONS) FY14 FY15 FY16 FY14 FY15 FY16 IBRD 420 1,209 669 335a 816 874 IDA 10,193 10,360 8,677 6,604 6,595 6,813 Portfolio of projects under implementation as of June 30, 2016: $56.1 billion. a.  This figure from Annual Report 2014 was revised because of rounding. Increasing agricultural productivity in West Africa I n 2008, the World Bank piloted the West Africa Agricultural Productivity Program (WAAPP) in Ghana, Mali, and Senegal. The results were impressive: Beneficiaries’ incomes rose 34 percent, yields rose 30 percent, calorie intake increased, and the length of hunger periods declined. The pilot’s success led to the program’s rollout in 10 more countries: Benin, Burkina Faso, Côte d’Ivoire, The Gambia, Guinea, Liberia, Niger, Nigeria, Sierra Leone, and Togo. The expanded program has raised incomes and improved food security for 7 million direct beneficiaries (42 percent of them women) and some 50 million indirect beneficiaries. It has provided smallholders working on almost 4 million hectares of land with 160 new crop varieties, food-processing tools, and other agricultural technologies. WAAPP is also building a future of agricultural innovation. It is supporting the establishment of nine research centers of specialization, which coordinate research and implementation across the region. WAAPP has also financed masters and doctoral degree training for more than 1,000 young scientists and involved universities in developing agricultural technologies. The success of the program led the Bank to expand it in Senegal this year. Additional funding of $20 million will support government efforts to strengthen the production of certified seeds and the marketing system for groundnuts, and help to diversify activities in the groundnut basin. For more information on the World Bank’s work in the region, visit www.worldbank.org/afr. THE REGIONS 27 East Asia and Pacific G rowth in the developing countries of East Asia and Pacific slowed slightly in 2015 to 6.5 percent, down from 6.8 percent in 2014. Decelerating economic growth in China, as well as in Indonesia, Malaysia, and Mongolia, accounted for most of the decline. Growth in the region’s developing countries other than China was 4.8 per- cent, similar to 2014. Despite the slowdown, the region accounted for almost two-fifths of global growth in 2015—an even larger contribution than in 2014. Extreme poverty has declined faster here than in any other region, falling from 80 percent in 1981 to an estimated 7.2 percent in 2012. Even with this remarkable progress, however, some 90 million people still live in extreme poverty—and another 250 million are vulnerable to falling back into extreme poverty as a result of climate change, natural disasters, disease, and eco- nomic shocks. Economic inequality is high in many countries even though the incomes of the bottom 40 percent of the population in most countries have been rising more rapidly than the incomes of the rest of the population. Income inequality partly reflects inequality of opportu- nity, including differential access to health services and education. World Bank assistance The Bank approved $7.5 billion for 41 projects in the region this fiscal year, including $5.2 bil- lion in IBRD loans and $2.3 billion in IDA commitments. The Bank’s strategy in the region focuses on five areas: inclusion and empowerment, jobs and private sector–led growth, gover- nance and institutions, infrastructure and urbanization, and climate change and disaster risk management. The cross-cutting themes of gender and fragility are also central to the Bank’s work in the region. Combating malnutrition and improving health The region is the epicenter of the double burden of stunting and obesity—both forms of mal- nutrition. Indonesia, Myanmar, the Philippines, and Vietnam are among the 34 countries that account for 90 percent of the global burden of stunting. China and Indonesia are among the 10 countries that account for more than 50 percent of the global burden of obesity. Stunting significantly reduces the physical and mental capabilities of children, imposing enormous human and economic costs. In Indonesia, for example, where 37 percent of children are stunted, economic losses associated with stunting are estimated at 2–3 percent of GDP. The Bank’s strategy to combat malnutrition promotes collaboration with policy makers, civil society, the private sector, and development partners to boost investment in nutrition and research to inform policy responses. The Bank is also investing in nutrition projects such as the National Program for Community Empowerment (PNPM Generasi) in Indonesia, which is help- ing to improve maternal and child health. In one of the country’s poorest provinces, the project helped to decrease the incidence of underweight and severely underweight children by 20 percent and 33 percent, respectively, and stunting decreased by 21 percent. 28 THE WORLD BANK ANNUAL REPORT 2016  AMBODIA © Chor Sokunthea/World Bank COUNTRIES ELIGIBLE FOR WORLD BANK BORROWING* Cambodia Lao People’s Democratic Palau Tonga China Republic Papua New Guinea Tuvalu Fiji Malaysia Philippines Vanuatu Indonesia Marshall Islands Samoa Vietnam Kiribati Federated States of Micronesia Solomon Islands Republic of Korea Mongolia Thailand C Myanmar Timor-Leste *as of June 30, 2016 Bolstering climate change mitigation and resilience The region includes 13 of the 30 countries that are most vulnerable to climate change. It also bears the brunt of 70 percent of the world’s natural disasters, which have affected more than 1.6 billion people in the region since 2000. Particularly hard hit have been the Pacific Island countries, where the rising sea level is threatening coastal areas and atoll islands. East Asia and Pacific is also the largest contributor to greenhouse gas emissions, accounting for a third of the world’s carbon dioxide emissions and 60 percent of its coal consumption. The region is therefore critical for advancing the global climate change agenda. To do so, the Bank is working with governments, the private sector, and other development partners on a range of innovative solutions to support greener and cleaner energy policies, including carbon pricing. The Bank also helps clients to adopt climate-smart approaches in areas such as urban devel- opment and agriculture. Beijing, for example, is striving to become a model for other Chinese cities in promoting resource-efficient and environmentally friendly urban economic growth. With support from the Bank, it installed 100 megawatts of rooftop solar photovoltaic systems in 800 primary and middle schools. In Vietnam, the use of climate-smart approaches to rice cultivation has helped more than 30,000 farmers produce more rice while cutting costs and reducing methane emissions. Fostering knowledge partnerships for development solutions The Bank continued to deepen its knowledge and research partnerships to help clients identify solutions to their evolving development challenges with Vietnam 2035: Toward Prosperity, Creativity, Equity, and Democracy, which examines how Vietnam can become a modern indus- trial nation in 20 years. The Bank expanded its partnerships with nonborrower member coun- tries this year, opening an office in Kuala Lumpur in March. The new Malaysia office, along with the office in Songdo, Republic of Korea, and the Singapore Global Infrastructure Hub, are intended to generate and share development knowledge, lessons, and solutions with countries in the region and across the globe. o View data THE REGIONS 29 FIGURE 3  EAST ASIA AND PACIFIC IBRD AND IDA LENDING BY SECTOR • FISCAL 2016 SHARE OF TOTAL OF $7.5 BILLION Water, Sanitation, and Flood Protection 12% 9% Agriculture, Fishing, and Forestry 4% Education Transportation 17% 28% Energy and Mining Public Administration, Law, and Justice 15% Information and Communications 0% 4% Finance Industry and Trade 6% 5% Health and Other Social Services TABLE 5  EAST ASIA AND PACIFIC REGIONAL SNAPSHOT CURRENT INDICATOR 2000 2010 DATAa TREND Total population (millions) 1,815 1,964 2,035 Population growth (annual %) 1.0 0.7 0.7 GNI per capita (Atlas method, current US$) 912 3,757 6,407 GDP per capita growth (annual %) 6.4 9.0 5.7 Population living below $1.90 a day (millions) 553 b 226 147 Life expectancy at birth, females (years) 72 75 76 Life expectancy at birth, males (years) 68 71 72 Youth literacy rate, females (% ages 15–24) 98 99 99 Youth literacy rate, males (% ages 15–24) 98 99 99 Carbon dioxide emissions (megatons) 4,212 9,558 10,485 MONITORING THE SUSTAINABLE DEVELOPMENT GOALS (SDGs) SDG 1.1 Extreme poverty (% population below $1.90 a day, 2011 PPP) b 11.2 7.2 29.2 SDG 2.2 Prevalence of stunting, height for age (% children under 5) 26 15 11 SDG 3.1 Maternal mortality ratio (modeled estimate, per 100,000 live births) 120 79 63 SDG 3.2 Under-5 mortality rate (per 1,000 live births) 42 23 18 SDG 4.1 Primary completion rate (% relevant age group) 90 105 105 SDG 5 Ratio of female to male labor force participation rate (modeled ILO estimate, %) 82 79 79 SDG 5.5 Proportion of seats held by women in national parliaments (% total) 17 18 20 SDG 6.1 Access to safe drinking water (% population with access) 80 90 94 SDG 6.2 Access to basic sanitation facilities (% population with access) 59 70 75 SDG 7.1 Access to electricity (% population) 91 95 96 SDG 7.2 Renewable energy consumption (% total final energy consumption) 31 22 21 SDG 17.8 Individuals using the Internet (% population) 2 29 45 Note: ILO = International Labour Organization; PPP = purchasing power parity. The most current data available between 2011 and 2015; visit http://data.worldbank.org for data updates. a.  b.  2002 data. THE REGIONS 30 FIGURE 4  EAST ASIA AND PACIFIC IBRD AND IDA LENDING BY THEME • FISCAL 2016 SHARE OF TOTAL OF $7.5 BILLION Urban Development 11% 2% Economic Management Trade and Integration 1% Environment and Natural 26% Resources Management Social Protection and Risk Management 17% Social Development, Gender, and Inclusion 2% Financial and Private 9% Sector Development 7% Human Development Rural Development 19% Rule of Law 0% 6% Public Sector Governance TABLE 6  EAST ASIA AND PACIFIC REGIONAL COMMITMENTS AND DISBURSEMENTS FOR FISCAL 2014–16 COMMITMENTS ($ MILLIONS) DISBURSEMENTS ($ MILLIONS) FY14 FY15 FY16 FY14 FY15 FY16 IBRD 4,181 4,539 5,176 3,397 3,596 5,205 IDA 2,131 1,803 2,324 1,459 1,499 1,204 Portfolio of projects under implementation as of June 30, 2016: $32.3 billion. Protecting Mongolia’s herders with innovative insurance M ongolia’s winters are beautiful, but they can be very harsh. In an extremely cold winter—known as a dzud—livestock die, costing herders their livelihoods. To protect herders from these devastating losses, the Bank created index-based livestock insurance. The project, launched in 2006 and completed in 2016, introduced an innovative insurance scheme in which payments are based on the total number of livestock lost by species and district rather than on households’ individual losses. The program is a combination of self-insurance, market-based insurance, and social safety net. Herders bear the cost of small losses that do not affect the viability of their business. Larger losses are transferred to the private insurance industry. In the event of catastrophic losses, the government steps in. The system provides strong incentives to herders to continue to manage their herds in the face of disasters. If a herder suffers no losses while his neighbors lose large parts of their herd after a dzud or a drought, he is rewarded for his extra effort and receives a sum based on the losses of the area as a whole. Under the traditional system, it was difficult for insurers to verify losses by individual herders in Mongolia’s vast territory. Because the index system relies on verifiable statistics, estimating losses is a much simpler process that leaves less room for error. This innovative product benefits herders and makes good business sense for insurance companies. For more information on the World Bank’s work in the region, visit www.worldbank.org/eap. THE REGIONS 31 Europe and Central Asia G rowth in Europe and Central Asia is projected to improve only modestly in 2016 compared with 2015’s contraction of 0.1 percent. Weak global growth, policy uncertainty resulting from Britain’s referendum to leave the European Union, con- tinued geopolitical tensions, and the refugee crisis all contribute to constraining the regional recovery. In Eurasia, ongoing low oil revenues and weak remittance flows continue to dampen growth, following a contraction of 1.1 percent in 2015. Significant poverty reduction over the past decade is reversing, and the sharing of prosper- ity is stalled in many countries. About 14 percent of the region’s population—more than 66 million people—live in poverty, including almost 19 million who live on less than $2.50 a day, the extreme poverty line for the region. World Bank assistance The Bank approved $7.3 billion in lending to the region for 42 projects this fiscal year, including $7.0 billion in IBRD loans and $233 million in IDA commitments. The Bank also signed 34 Reim- bursable Advisory Services agreements with 9 countries for a total of $34.1 million. These agree- ments provide technical advice on such issues as the reform of education systems, public sector governance and institutional capacity building, and the planning and management of infra- structure investments. The strategy for the region seeks to support clients in adjusting to the new normal given increasing vulnerabilities and risks. Toward that end, the Bank is supporting macroeconomic stability and advising on the policy response to currency pressures; working with clients to address the challenges of forced displacement and declining remittances; advising clients on budgets to support key reforms; supporting the development of safety nets; and helping coun- tries to prioritize investment. At the same time, the Bank continues to assist in tackling the structural and long-term challenges affecting the region. Supporting resilience, diversification, and competitiveness This year the Bank invested in macroeconomic growth, good governance, competitiveness, and job creation in Armenia, Kazakhstan, the Kyrgyz Republic, Poland, Serbia, and Ukraine. It also invested in improving public sector governance and ensuring good-quality public services in Albania, Armenia, Belarus, the Kyrgyz Republic, Moldova, Serbia, Ukraine, and Uzbekistan. It helped to foster innovation, entrepreneurship, and private sector growth in Croatia and the Kyrgyz Republic; improve access to finance for micro, small, and medium enterprises in Turkey; and develop competitive tourism services in Georgia and the former Yugoslav Republic of Macedonia. Bank-funded programs supported the resiliency and efficiency of the financial sector and banking systems in Bulgaria, Kazakhstan, the Kyrgyz Republic, and Ukraine, and helped Armenia, Azerbaijan, Georgia, Kazakhstan, FYR Macedonia, Moldova, and Ukraine to modernize and expand their transport infrastructure in order to support growth, connectivity, and competitiveness. 32 THE WORLD BANK ANNUAL REPORT 2016  OSNIA AND HERZEGOVINA © Almie Zrno/World Bank COUNTRIES ELIGIBLE FOR WORLD BANK BORROWING* Albania Croatia Moldova Tajikistan Armenia Georgia Montenegro Turkey Azerbaijan Kazakhstan Poland Turkmenistan Belarus Kosovo Romania Ukraine Bosnia and Kyrgyz Republic Russian Federation Uzbekistan Herzegovina Former Yugoslav Republic of Serbia B Bulgaria Macedonia *as of June 30, 2016 The Bank offered advice on and analytical services for improving the investment climate and business environment in Greece, Kazakhstan, the Kyrgyz Republic, Poland, Romania, the Russian Federation, and Spain; public finance and public sector efficiency in Albania, Armenia, Kazakh- stan, the Kyrgyz Republic, FYR Macedonia, Poland, Romania, Serbia, and Uzbekistan; and trade and competitiveness in Kazakhstan, the Kyrgyz Republic, Russia, Turkmenistan, and the countries of the Western Balkans. The Bank produces macroeconomic analysis and sector-specific policy recommendations in its periodic economic reports on many of the region’s countries. The latest “Russia Economic Report: The Long Journey to Recovery” focused on the challenges of economic diversification in Russia; and the “South East Europe Regular Economic Report Special Topic: The Impact of Aging on Economic Growth” analyzed the impact of aging on economic growth in the coun- tries of the Western Balkans. Developing human capital and supporting inclusion The Bank works with client countries in designing and implementing reforms to improve the efficiency and fiscal sustainability of their pension, social protection, education, and health care systems. This year it helped policy makers to improve health care systems in Kazakhstan and education systems in Kosovo and Uzbekistan. It provided analytical and advisory services to improve the efficiency and fiscal sustainability of the pension systems in Albania, Armenia, Azerbaijan, Georgia, Hungary, Kazakhstan, Poland, Russia, and the Western Balkans, and to improve safety net systems in Greece, Kazakhstan, and Uzbekistan. The Bank published a book on the Roma this year. Being Fair, Faring Better: ­ Promoting Equality of Opportunity for Marginalized Roma identifies ways in which countries in Central and Eastern Europe can create fair chances for disadvantaged Roma. Supporting climate adaptation and energy efficiency Climate adaptation and energy efficiency remain strategic priorities for Europe and Central Asia, the world’s most energy-intensive developing region. The Bank advised on policy reforms that would increase energy efficiency in the Kyrgyz Republic, FYR Macedonia, and the member countries of the European Union. It supported flood management in Poland, and provided investments and analytical services to improve climate resilience in Central Asia, Romania, and the Western Balkans. o View data THE REGIONS 33 U  GANDA © Sarah Farhat/World Bank FIGURE 5  EUROPE AND CENTRAL ASIA IBRD AND IDA LENDING BY SECTOR • FISCAL 2016 SHARE OF TOTAL OF $7.3 BILLION Water, Sanitation, and Flood Protection 6% 1% Agriculture, Fishing, and Forestry 1% Education 2% Energy and Mining Transportation 28% 18% Finance Health and 8% Other Social Services 17% Industry and Trade Public Administration, Law, and Justice 19% <1% Information and Communications TABLE 7  EUROPE AND CENTRAL ASIA REGIONAL SNAPSHOT CURRENT INDICATOR 2000 2010 DATAa TREND Total population (millions) 393 399 411 Population growth (annual %) 0.0 0.5 0.6 GNI per capita (Atlas method, current US$) 1,767 7,326 8,226 GDP per capita growth (annual %) 8.0 4.8 –01.2 Population 29 living below $1.90 a day (millions) b 13 10 Life expectancy at birth, females (years) 73 75 76 Life expectancy at birth, males (years) 63 66 68 Youth literacy rate, females (% ages 15–24) 98 99 99 literacy rate, males (% ages 15–24) Youth 99 100 100 dioxide emissions (megatons) Carbon 2,699 3,085 3,208 MONITORING THE SUSTAINABLE DEVELOPMENT GOALS (SDGs) SDG 1.1 Extreme poverty (% population below 6.2 $1.90 a day, 2011 PPP) b 2.8 2.1 SDG 2.2 Prevalence of stunting, height for age (% children under 5) 19 12 10 SDG 3.1 Maternal mortality ratio estimate, per 100,000 live births) (modeled 56 29 25 SDG 3.2 Under-5 mortality rate (per 1,000 live births) 42 25 21 SDG 4.1 Primary completion rate (% relevant age group) 94 98 100 SDG 5 Ratio of female to male labor force participation rate (modeled ILO estimate, %) 73 73 72 SDG 5.5 Proportion of seats held by women in national parliaments (% total) 7 15 18 SDG 6.1 Access to safe drinking water (% population with access) 92 95 97 SDG 6.2 Access to basic sanitation facilities (% population with access) 82 85 86 SDG 7.1 Access to electricity (% population) 99 100 100 SDG 7.2 Renewable energy consumption (% total final energy consumption) 6 6 6 SDG 17.8 Individuals using the Internet (% population) 2 36 60 Note: ILO = International Labour Organization; PPP = purchasing power parity. The most current data available between 2011 and 2015; visit http://data.worldbank.org for data updates. a.  b.  2002 data. THE REGIONS 34 FIGURE 6  EUROPE AND CENTRAL ASIA IBRD AND IDA LENDING BY THEME • FISCAL 2016 SHARE OF TOTAL OF $7.3 BILLION Trade and Integration 11% 2% Urban Development Social Protection and 8% Economic Management Risk Management 6% Social Development, Environment and Natural Gender, and Inclusion 1% 10% Resources Management Rural Development 6% Rule of Law 3% Public Sector Governance 9% Financial and Private Human Development 4% 42% Sector Development TABLE 8  EUROPE AND CENTRAL ASIA REGIONAL COMMITMENTS AND DISBURSEMENTS FOR FISCAL 2014–16 COMMITMENTS ($ MILLIONS) DISBURSEMENTS ($ MILLIONS) FY14 FY15 FY16 FY14 FY15 FY16 IBRD 4,729 6,679 7,039 6,536a 5,829 5,167 IDA 798 527 233 519 314 365 Portfolio of projects under implementation as of June 30, 2016: $27.2 billion. a.  This figure from Annual Report 2014 was revised because of rounding. Building resilience after the floods in Bosnia and Herzegovina I n the village of Prud, in the northern part of Bosnia and Herzegovina, Dragan Petric and his neighbors rely on their plots of land. They raise poultry and cattle and grow fruit and vegetables to provide for their families. In the middle of one night in May 2014, Dragan’s family awoke to find their house inundated with over 1.5 meters of water and mud. The nearby Sava River had flooded its banks after days of unprecedented heavy rains, ruining homes, furniture, and vehicles; destroying roads and bridges; and submerging their land.  After the flooding, the local governments provided emergency assistance to people who suffered losses in the floods. Supporting this assistance, the World Bank delivered $100 million from the Floods Emergency Recovery Project to help populations in the areas affected by the floodwaters restore their lives to preflood conditions. Thanks to this support, Dragan received a new tractor—a key asset for his family’s livelihood—to replace the one he lost to the destructive floods in 2014. After the first two years of project implementation, about 150,000 people have benefited from rehabilitated infrastructure, and about 100,000 beneficiaries have received construction materials, agricultural goods and equipment, and other emergency goods. With many more subprojects ongoing to reconstruct the affected local and regional infrastructure, the Floods Emergency Recovery Project is expected to reach its goal of ultimately providing assistance to 300,000 people in the flood- affected areas of Bosnia and Herzegovina. For more information on the World Bank’s work in the region, visit www.worldbank.org/eca.  THE REGIONS 35 Latin America and the Caribbean A fter a decade of strong, inclusive economic growth, Latin America and the Caribbean finds itself in the fifth year of an economic slowdown and the second con­ secutive year of GDP contraction. Worsening external conditions coupled with domestic challenges have reduced expectations for regional growth to –0.7 percent in 2015, with economic activity projected to drop to –1.3 percent in 2016. These projections mask important intraregional differences. South American economies, which have been hit hardest by lower commodity prices and the slowdown in China, are expected to contract by 2.6 percent in 2016. In Mexico, Central America, and the Caribbean, lower commodity dependence and closer links to the U.S. economy are expected to fuel a modest expansion of 2.7 percent in 2016. Sluggish growth, potentially for an extended period, is threatening the region’s hard-won social gains. The share of the population living on $2.50 a day or less, the threshold for extreme poverty in the region, fell from 24.5 percent in 2003 to 1 1.0 percent in 2013. In total, 76 million people were lifted out of poverty. These gains notwithstanding, in 2014, 39 percent of the population remained vulnerable to ­ falling into poverty, and the increase in the size of the mid- dle class has slowed. World Bank assistance The Bank approved $8.2 billion and 31 operations for the region this fiscal year, including $8.0 billion in IBRD loans and $183 million in IDA commitments. Illustrating how the Bank’s role in Latin America and the Caribbean has evolved in recent decades, countries in the region now turn increasingly to the institution for more than direct lending, including such services as risk insurance, commodity swaps, and climate adaptation finance. An example is the Caribbean Catastrophe Risk Insurance Facility, which the Bank helped to establish in 2007, that now allows more than 20 Caribbean and Central American countries to pool risk, access disaster insurance at low cost, and better manage catastrophic risk. The Bank also remains a vital source of ideas, best practices, and convening power. Two studies, Out of School and Out of Work: Risk and Opportunities for Latin America’s Ninis and Indigenous Latin America in the Twenty-First Century: The First Decade, offer insight and guid- ance on key development issues, while conferences such as Governance for Growth with Equity, held in Uruguay in April, demonstrate the Bank’s capacity to convene leaders around rising regional challenges. Spurring economic recovery To set the stage for economic recovery, the region needs to increase productivity, strengthen the business environment, and expose companies to greater domestic and external competi- tion. To those ends, the Bank is supporting Colombia’s efforts to raise the level and allocation of productive skills among professionals and to streamline regulations to catalyze innovation. In Peru, it is helping to promote productivity by raising the quality of public education, and 36 THE WORLD BANK ANNUAL REPORT 2016  OLOMBIA © Dominic Chavez/World Bank COUNTRIES ELIGIBLE FOR WORLD BANK BORROWING* Antigua and Barbuda Colombia Guatemala Panama Suriname Argentina Costa Rica Guyana Paraguay Trinidad and Tobago Belize Dominica Haiti Peru Uruguay Plurinational State Dominican Republic Honduras St. Kitts and Nevis República Bolivariana of Bolivia Ecuador Jamaica St. Lucia de Venezuela Brazil El Salvador Mexico St. Vincent and the C Chile Grenada Nicaragua Grenadines *as of June 30, 2016 helping to improve the business environment by reducing entrance, operation, and market exit costs for companies. Building sustainable infrastructure Building better and more sustainable infrastructure to support higher growth in the region will require mobilizing investment from both the public and the private sectors. The Bank has played a catalytic role in this effort, providing lending and technical assistance to develop high-quality infrastructure with a lower carbon footprint. In Lima, Peru, and Quito, Ecuador, the Bank is working to develop metro systems that will reduce carbon emissions and unlock con- gestion. In the Caribbean, it is modernizing grid systems and helping businesses to retrofit their buildings so they can save energy and draw on renewable sources of power. Investing in the poor and vulnerable Protecting the poor and vulnerable from the economic slowdown, and building their human capital so they can share in the benefits of growth are top priorities in the region. In Costa Rica, the Bank is supporting efforts to improve the quality and availability of health care for the poor. In Haiti, it is working with its partners in the Education for All program to increase access to schools and quality education for 73,000 disadvantaged children, and to provide daily meals for 132,000 in this school year. In Mexico, it is helping to expand access to a broader range of social services for beneficiaries of the Prospera conditional cash transfer program. Building resilience and responding to shocks Helping countries to build resilience against unexpected shocks—such as natural disasters and public health emergencies—represents a cross-cutting theme that spans the Bank’s operational work. In Bolivia, the Bank is assisting in the development of a comprehensive system to better manage disaster-related risks. In February 2016, it offered $150 million to support the region’s response to the Zika virus. Following a major earthquake that struck Ecuador in April, killing hundreds of people and wounding thousands more, the Bank immediately made funds avail- able from a recently approved $150 million Risk Mitigation and Emergency Recovery Project to pay for medicine, mobile hospitals, and other basic services. o View data THE REGIONS 37 FIGURE 7  LATIN AMERICA AND THE CARIBBEAN IBRD AND IDA LENDING BY SECTOR • FISCAL 2016 SHARE OF TOTAL OF $8.2 BILLION Water, Sanitation, and Flood Protection 10% 2% Agriculture, Fishing, and Forestry 13% Education Transportation 13% 3% Energy and Mining 7% Finance Public Administration, Health and Other Law, and Justice 21% 17% Social Services Information and Communications <1% 14% Industry and Trade TABLE 9  LATIN AMERICA AND THE CARIBBEAN REGIONAL SNAPSHOT CURRENT INDICATOR 2000 2010 DATAa TREND Total population (millions) 464 531 562 Population growth (annual %) 1.5 1.2 1.1 GNI per capita (Atlas method, current US$) 3,625 7,669 8,331 GDP per capita growth (annual %) 2.7 4.3 –2.2 Population living below $1.90 a day (millions) 70 b 38 34 Life expectancy at birth, females (years) 74 77 78 Life expectancy at birth, males (years) 68 71 71 Youth literacy rate, females (% ages 15–24) 96 98 98 Youth literacy rate, males (% ages 15–24) 96 97 97 Carbon dioxide emissions (megatons) 1,084 1,375 1,399 MONITORING THE SUSTAINABLE DEVELOPMENT GOALS (SDGs) SDG 1.1 Extreme poverty (% population below $1.90 a day, 2011 PPP) b 6.5 5.6 13.2 SDG 2.2 Prevalence of stunting, height for age (% children under 5) 18 13 11 SDG 3.1 Maternal mortality ratio (modeled estimate, per 100,000 live births) 104 84 70 SDG 3.2 Under-5 mortality rate (per 1,000 live births) 34 26 19 SDG 4.1 Primary completion rate (% relevant age group) 96 99 101 SDG 5 Ratio of female to male labor force participation rate (modeled ILO estimate, %) 61 67 68 SDG 5.5 Proportion of seats held by women in national parliaments (% total) 15 23 29 SDG 6.1 Access to safe drinking water (% population with access) 89 93 94 SDG 6.2 Access to basic sanitation facilities (% population with access) 72 79 81 SDG 7.1 Access to electricity (% population) 93 95 96 SDG 7.2 Renewable energy consumption (% total final energy consumption) 31 31 30 SDG 17.8 Individuals using the Internet (% population) 3 33 53 Note: ILO = International Labour Organization; PPP = purchasing power parity. The most current data available between 2011 and 2015; visit http://data.worldbank.org for data updates. a.  b.  2002 data. THE REGIONS INTRODUCTION 37 38 FIGURE 8  LATIN AMERICA AND THE CARIBBEAN IBRD AND IDA LENDING BY THEME • FISCAL 2016 SHARE OF TOTAL OF $8.2 BILLION Urban Development 6% <1% Economic Management Environment amd Natural Trade and Integration 7% 12% Resources Management Social Protection and Financial and Private Risk Management 14% 14% Sector Development Social Development, Gender, and Inclusion 2% 18% Human Development Rural Development 4% Rule of Law 2% 18% Public Sector Governance TABLE 10  LATIN AMERICA AND THE CARIBBEAN REGIONAL COMMITMENTS AND DISBURSEMENTS FOR FISCAL 2014–16 COMMITMENTS ($ MILLIONS) DISBURSEMENTS ($ MILLIONS) FY14 FY15 FY16 FY14 FY15 FY16 IBRD 4,609 5,709 8,035 5,662 5,726 5,236 IDA 460 315 183 306 383 303 Portfolio of projects under implementation as of June 30, 2016: $28.8 billion. Leveraging the Bank’s convening power to increase transparency and accountability T ransparency, accountability, and zero tolerance for corruption are front and center in the minds of citizens throughout Latin American and the Caribbean. As the region’s middle class grew over the past decade, its population began to expect and demand higher-quality public services and more-accountable governments. At a time of slower economic growth and fewer resources, public expenditure needs to become more efficient, while transparency and trust will be key to assure taxpayers their money is being well spent. These issues were the focus of a high-level regional conference that the Bank hosted in Montevideo, Uruguay, in April. Cuentas Claras: Governance for Growth with Equity in Latin America and the Caribbean attracted some 300 participants, who exchanged ideas on the need for transparency in public spending, the rule of law, justice as a public good, the role of procurement in improving public service delivery, and other issues. Underscoring the rising importance of governance on the regional agenda, the event included more than a dozen cabinet-level officials, such as the finance ministers of Argentina, Paraguay, and Uruguay. The conference also drew academics and journalists from the region, as well as nearly 12,000 additional people who participated in the conference live online. The Cuentas Claras event demonstrates the critical role that the Bank can play in convening top policy makers to help facilitate solutions to the most pressing challenges to the region’s shared development goals. For more information on the World Bank’s work in the region, visit www.worldbank.org/lac. THE REGIONS INTRODUCTION 38 39 Middle East and North Africa T he Middle East and North Africa region continues to be in transition. Violence contin- ues in Iraq, Libya, the Syrian Arab Republic, and Yemen; and Iraq, Jordan, and Leba- non are home to millions of forcibly displaced people. The Arab Republic of Egypt and Tunisia are consolidating their political environments; Jordan and Morocco are also undertaking governance and economic reforms; and the Gulf Cooperation Council (GCC) countries, while stable, are challenged by low oil prices and are initiating reforms to diversify their economies. The situation in the West Bank and Gaza remains largely unchanged, with occasional outbreaks of violence. Economic growth in the region is projected to remain at 2.9 percent in 2016, with lower- than-average growth in the GCC (2.2 percent) countries and in Lebanon, Morocco, and Tunisia (1.8 percent), and higher-than-average growth in the region’s developing countries (4.4 percent). Growth in 2017 is projected to rise to 4.2 percent, assuming in large part that oil production increases in Libya and the Islamic Republic of Iran. Less than 3 percent of the pop- ulation live in extreme poverty, but vulnerability is high because 53 percent of the population live on $4.00 a day or less. World Bank assistance The World Bank approved $5.2 billion for the region for 15 projects this fiscal year, including $5.2 billion in IBRD loans and $31 million in IDA commitments. It also committed $53 million in special financing for five projects in the West Bank and Gaza. The Bank delivered 187 analytical and advisory services in fiscal 2016. It partnered with the UN High Commissioner for Refugees (UNHCR) on a path-breaking report entitled The Welfare of Syrian Refugees: Evidence from Jordan and Lebanon, which includes evidence-based policy recommendations. Another report the Bank published, entitled Trust, Voice, and Incentives: Learning from Local Success Stories in Service Delivery in the Middle East and North Africa, examines the roles of incentives, trust, and engagement that suggest ways governments can increase accountability, policy implementation, and service delivery. The Bank provided more than $30 million in Reimbursable Advisory Services to GCC governments, with a focus on edu- cation, governance, economic diversification, and small and medium enterprises. This fiscal year the Bank announced a new regional strategy that puts the promotion of peace and social stability at its center. The strategy’s four pillars focus on forging a new social contract in order to create more-inclusive and more-accountable ­ governance structures and private sector–driven economies; increasing regional cooperation; building resilience, which includes the challenges of forcibly displaced people; and supporting economic recov- ery and reconstruction. Renewing the social contract The World Bank can play a role in helping countries in the region to renew the social contract in at least three areas—jobs, quality services, and citizen engagement—to contribute to peace 40 THE WORLD BANK ANNUAL REPORT 2016  EBANON © Dominic Chavez/World Bank COUNTRIES ELIGIBLE FOR WORLD BANK BORROWING* Algeria Islamic Republic Lebanon Tunisia Djibouti of Iran Libya Republic of Yemen Arab Republic Iraq Morocco of Egypt Jordan *as of June 30, 2016 L This section also reports on the West Bank and Gaza. and stability in the short term and economic growth in the long term. To promote trust in government institutions and processes, the Bank approved a $1.2 billion loan for Iraq to help it stabilize the fiscal situation and focus on governance reforms. It approved a $1 billion loan to Egypt to improve its fiscal balances and support reforms in energy subsidies. A $500 million loan to Tunisia will allow the government to focus on governance and reforms that will help create jobs. A $200 million loan to Morocco will help strengthen transparency and accountability. Increasing regional cooperation Beyond economic benefits, the potential gains from increased integration in areas such as energy, water, and education can serve to build regional cooperation and trust. A $250 million loan to Jordan will significantly enhance its energy security by diversifying its energy imports and building ties to neighboring exporters. A $200 million road transport loan to Tunisia will enhance links to both its own lagging regions and its neighbors. Building resilience to forced displacement Building resilience to forced displacement means promoting the welfare of forcibly displaced people and the host communities throughout the region. Support from the World Bank includes a $350 million program for Iraq that will help to rebuild seven cities and towns that have been liberated from Islamic State of Iraq and Syria (ISIS), and will help to resettle their returning populations (see project details in the box). A $20 million IDA grant to Djibouti will support its efforts on behalf of forcibly displaced people there. A $12.3 million loan will expand the coverage and enhance the social assistance package extended to people in Lebanon affected by the Syrian crisis and assist all vulnerable Lebanese households. Supporting economic recovery and reconstruction Providing assistance to recover and restore economies affected by conflict and instability is at the core of the Bank’s mission and assistance in the region. Buffeted by bouts of instability, often linked to unemployed youth, Tunisia is seeking to strengthen the employability of higher education graduates, whose rates of unemployment are the highest in the country. The Bank’s $70 million loan will assist the government in its efforts to do so. Similarly, $5 million in financ- ing to the West Bank and Gaza will support job creation in the private sector. o View data THE REGIONS 41 FIGURE 9  MIDDLE EAST AND NORTH AFRICA IBRD AND IDA LENDING BY SECTOR • FISCAL 2016 SHARE OF TOTAL OF $5.2 BILLION Water, Sanitation, and Flood Protection 14% 6% Agriculture, Fishing, and Forestry 1% Education Transportation 10% 21% Energy and Mining Public Administration, Law, and Justice 26% 9% Finance Health and Other 2% Social Services Information and Communications 3% 8% Industry and Trade TABLE 11 MIDDLE EAST AND NORTH AFRICA REGIONAL SNAPSHOT CURRENT INDICATOR 2000 2010 DATAa TREND Total population (millions) 279 332 363 Population growth (annual %) 1.8 1.8 1.8 GNI per capita (Atlas method, current US$) 1,581 3,963 4,390b GDP per capita growth (annual %) 2.3 3.5 –2.2b Population living below $1.90 a day (millions)c 11 10 9 Life expectancy at birth, females (years) 71 74 74 Life expectancy at birth, males (years) 67 69 70 Youth literacy rate, females (% ages 15–24) 81 89 89 Youth literacy rate, males (% ages 15–24) 91 94 94 Carbon dioxide emissions (megatons) 873 1,287 1,309 MONITORING THE SUSTAINABLE DEVELOPMENT GOALS (SDGs) SDG 1.1 Extreme poverty (% population below $1.90 a day, 2011 PPP)c 4.17 3.3 2.7 SDG 2.2 Prevalence of stunting, height for age (% children under 5) 24 19 17 SDG 3.1 Maternal mortality ratio (modeled estimate, per 100,000 live births) 125 99 90 SDG 3.2 Under-5 mortality rate (per 1,000 live births) 45 29 25 SDG 4.1 Primary completion rate (% relevant age group) 83 92 93 SDG 5 Ratio of female to male labor force participation rate (modeled ILO estimate, %) 25 27 28 SDG 5.5 Proportion of seats held by women in national parliaments (% total) 4 11 17 SDG 6.1 Access to safe drinking water (% population with access) 88 89 93 SDG 6.2 Access to basic sanitation facilities (% population with access) 78 86 90 SDG 7.1 Access to electricity (% population) 90 95 96 SDG 7.2 Renewable energy consumption (% total final energy consumption) 3 3 3 SDG 17.8 Individuals using the Internet (% population) 0.8 21 38 Note: ILO = International Labour Organization; PPP = purchasing power parity. a. The most current data available between 2008 and 2015; visit http://data.worldbank.org for data updates. b.  Estimated data. c.  1999, 2005, and 2008 data. THE REGIONS 42 FIGURE 10  MIDDLE EAST AND NORTH AFRICA IBRD AND IDA LENDING BY THEME • FISCAL 2016 SHARE OF TOTAL OF $5.2 BILLION Trade and Integration 2% 11% Urban Development Social Protection and 8% Economic Management Risk Management 1% Social Development, Environment and Natural Gender, and Inclusion 2% 14% Resources Management Rural Development 5% Rule of Law 0% Financial and Private 26% Sector Development Public Sector Governance 30% 2% Human Development TABLE 12  MIDDLE EAST AND NORTH AFRICA REGIONAL COMMITMENTS AND DISBURSEMENTS FOR FISCAL 2014–16 COMMITMENTS ($ MILLIONS) DISBURSEMENTS ($ MILLIONS) FY14 FY15 FY16 FY14 FY15 FY16 IBRD 2,588 3,294 5,170 1,666 1,779 4,427 IDA 199 198 31 273 194 44 Portfolio of projects under implementation as of June 30, 2016: $14.5 billion. Supporting recovery and reform in Iraq I n the summer of 2014, Mosul, Iraq’s second-largest city, and other smaller cities and towns in Iraq fell to ISIS. The defeats caused the government to fall and Western and regional powers to intervene in support of a new, reformist government. By the following summer, the Iraqi army and its allies had retaken control of substantial portions of the country, including seven cities and towns that needed to be rebuilt and prepared for the return of the thousands of residents who had fled. In July 2015, the Bank approved the Iraq Emergency Operation for Development Project, a $350 million package that will support the repair and reconstruction of damaged power, water, and sanitation networks as well roads and bridges; the enhancement of health care services; and the rebuilding of houses damaged in the conflict. The operation is part of a larger program to be carried out over a five-year period in two conflict-affected governorates, Salah Al-Din and Diyala, covering seven cities, (Al-Aazeeam, Al-Alam, Al-Dalooeyya, As-Sadiya, Dour, Jalula, and Tikrit). In December 2015, the Bank approved a $1.2 billion loan focused on three areas: improving public expenditure management; increasing the sustainability of the energy supply (by reducing gas flaring, harnessing natural gas, and reducing subsidies on energy); and improving the transparency of state-owned enterprises, such as allowing private banks to compete with Iraq’s two large, state-owned banks. The reforms supported by this loan will help to stabilize the economy and lay the foundations for inclusive growth for all Iraqis. For more information on the World Bank’s work in the region, visit www.worldbank.org/mena. THE REGIONS 43 South Asia S outh Asia remains the world’s fastest-growing region although capital inflows declined, inflation has been on the rise, and remittances from oil-­ exporting countries started to weaken. Economic growth rose to 7.0 percent in 2015, up from 6.8 percent in 2014, and is projected to accelerate to 7.1 percent in 2016 and 7.2 percent in 2017. Growth was especially strong in India, which continues to lead in performance among large emerging mar- ket economies. Strong growth has translated into declining poverty and impressive improvements in human development. The proportion of people living on less than $1.90 a day was estimated at 18.8 percent as of 2012. Hundreds of millions still live slightly above the poverty line; how- ever, more than 200 million live in slums, and about 500 million go without electricity. In addi- tion, many countries in the region suffer from extreme forms of social exclusion and huge infrastructure gaps, and the larger countries are experiencing increases in inequality. Develop- ment in the region will be key to meeting global poverty and prosperity goals. World Bank assistance The Bank delivered 37 projects totaling $8.4 billion in fiscal 2016, including $3.6 billion in IBRD loans and $4.7 billion in IDA commitments, of which $100 million was from the IDA Scale-up Facility. Lending included such transformational operations as the $1.5 billion Swachh Bharat Mission Support Operation, which seeks to end open defecation in India; a $920 million pack- age of IDA and IBRD funding that supports competitiveness and structural reform in Pakistan; the $360 million Bangladesh Regional Waterway Transport Project; and the $250 million Trans-Hindukush Road Connectivity Project in Afghanistan. The Bank also delivered 166 analyt- ical and advisory services and approved 10 large Recipient-Executed Trust Fund (RETF) opera- tions, $500 million of which went to Afghanistan. Focusing on the drivers of sustainable growth Sustainable growth of more than 7 percent a year is needed in South Asia if the region is to meet its goals by 2030. To help it do so, the Bank’s regional strategy focuses on private sector development (emphasizing infrastructure, job creation, and urbanization); social and financial inclusion (emphasizing labor force participation and gender); governance and security; and enhanced regional cooperation. The Afghanistan Trans-Hindukush Road Connectivity Project, the India Bihar Transformative Development Project, and the Pakistan Power Sector Reform Development ­ Policy Credit are examples of operations aligned with these pillars. Adopting a new Regional Gender Action Plan This year the Bank adopted a new Regional Gender Action Plan for South Asia covering fiscal years 2016–20. It prioritizes closing gender gaps and improving human capital outcomes, spur- ring economic empowerment, and giving women voice and agency. The cornerstone of the plan is efforts to increase female labor force participation rates; create more and higher-skill 44 THE WORLD BANK ANNUAL REPORT 2016  INDIA © Mohamad Al Arief/World Bank COUNTRIES ELIGIBLE FOR WORLD BANK BORROWING* Afghanistan Bhutan Maldives Pakistan Bangladesh India Nepal Sri Lanka *as of June 30, 2016 jobs for women; and make finance, trade, and private enterprise more inclusive of women. The $290 million Bihar Transformative Development Project in India will mobilize women from the poorest households in self-help groups and federations so that they can gain access to formal credits, join farmer producer groups, and increase household savings. Addressing global climate change South Asia is the recipient of more than 33 percent of the Bank’s lending addressing climate change and 40 percent of its lending for disaster risk management. A $1 13 million Weather and Climate Services Regional Project, for example, aims to increase Bangladesh’s capacity services by strengthening hydro- to deliver reliable weather, water, and climate information ­ meteorological monitoring and forecasting and improving early warning systems. Bank sup- port will enhance agro-meteorological services to farmers in order to increase their productiv- ity and help them to cope with weather and climate extremes. Supporting jobs, improving governance and security The $100 million Punjab Jobs and Competitiveness Program for Results for Pakistan seeks to improve the business environment and support high-potential industrial clusters in Punjab. The $75 million Federally Administered Tribal Areas (FATA) Temporarily Displaced Persons Emergency Recovery Project is supporting the recovery of families affected by the security crisis in these areas, promoting child health, and strengthening emergency safety net delivery systems. The $41 million Second Public Financial Management Reform Project is strengthening Afghanistan’s procurement, treasury, and audit systems. Producing cutting-edge knowledge The Bank published several important reports this fiscal year. Leveraging Urbanization in South Asia: Managing Spatial Transformation for Prosperity and Livability argues that the inadequate provision of housing, infrastructure, and basic urban services, as well as a failure to deal with pollution, are constraining the potential of the region’s cities to fully realize the benefits of agglomeration. Stitches to Riches? Apparel Employment, Trade, and Economic Development in South Asia investigates the potential for expanding and improving jobs in the labor-intensive apparel sector. The Bank held a South-South Knowledge Exchange forum in Beijing in November 2015. Delegations from South Asia shared lessons from Pakistan’s Benazir Income Support Program and from BRAC’s Manoshi program in Bangladesh for maternal, newborn, and child health, which was implemented in urban slums. Extensive knowledge exchange also took place in the energy sector. o View data THE REGIONS 45 FIGURE 11  SOUTH ASIA IBRD AND IDA LENDING BY SECTOR • FISCAL 2016 SHARE OF TOTAL OF $8.4 BILLION Water, Sanitation, and Flood Protection 22% 7% Agriculture, Fishing, and Forestry 8% Education Transportation 9% 25% Energy and Mining Public Administration, Law, and Justice 14% Information and Communications <1% 3% Finance Industry and Trade 7% 4% Health and Other Social Services TABLE 13 SOUTH ASIA REGIONAL SNAPSHOT CURRENT INDICATOR 2000 2010 DATAa TREND Total population (millions) 1,386 1,629 1,744 Population growth (annual %) 1.9 1.4 1.3 GNI per capita (Atlas method, current US$) 451 1,191 1,533 GDP per capita growth (annual %) 2.2 7.5 5.8 Population living below $1.90 a day (millions) 583 b 437 309 Life expectancy at birth, females (years) 64 68 70 Life expectancy at birth, males (years) 62 66 67 Youth literacy rate, females (% ages 15–24) 64 79 79 Youth literacy rate, males (% ages 15–24) 80 87 87 Carbon dioxide emissions (megatons) 1,336 2,198 2,328 MONITORING THE SUSTAINABLE DEVELOPMENT GOALS (SDGs) SDG 1.1 Extreme poverty (% population below $1.90 a day, 2011 PPP) b 27.2 18.8 40.8 SDG 2.2 Prevalence of stunting, height for age (% children under 5) 51 41 37 SDG 3.1 Maternal mortality ratio (modeled estimate, per 100,000 live births) 388 228 182 SDG 3.2 Under-5 mortality rate (per 1,000 live births) 94 64 53 SDG 4.1 Primary completion rate (% relevant age group) 70 91 91 SDG 5 Ratio of female to male labor force participation rate (modeled ILO estimate, %) 43 40 39 SDG 5.5 Proportion of seats held by women in national parliaments (% total) 8 20 19 SDG 6.1 Access to safe drinking water (% population with access) 80 89 92 SDG 6.2 Access to basic sanitation facilities (% population with access) 29 40 45 SDG 7.1 Access to electricity (% population) 61 74 78 SDG 7.2 Renewable energy consumption (% total final energy consumption) 53 42 41 SDG 17.8 Individuals using the Internet (% population) 0.5 7 24 Note: ILO = International Labour Organization; PPP = purchasing power parity. The most current data available between 2012 and 2015; visit http://data.worldbank.org for data updates. a.  b.  2002 data. THE REGIONS 46 FIGURE 12  SOUTH ASIA IBRD AND IDA LENDING BY THEME • FISCAL 2016 SHARE OF TOTAL OF $8.4 BILLION Urban Development 6% 7% Economic Management Trade and Integration 7% Environment and Natural Social Protection and 4% Resources Management Risk Management 6% Financial and Private Social Development, Gender, 17% Sector Development and Inclusion 1% 11% Human Development 9% Public Sector Governance Rural Development 32% 0% Rule of Law TABLE 14  SOUTH ASIA REGIONAL COMMITMENTS AND DISBURSEMENTS FOR FISCAL 2014–16 COMMITMENTS ($ MILLIONS) DISBURSEMENTS ($ MILLIONS) FY14 FY15 FY16 FY14 FY15 FY16 IBRD 2,077 2,098 3,640 1,165 1,266 1,623 IDA 8,458 5,762 4,723 4,271 3,919 4,462 Portfolio of projects under implementation as of June 30, 2016: $48.5 billion. Improving road connectivity in Afghanistan A fghanistan suffers from significant transportation  infrastructure gaps in terms of connectivity and accessibility. The total length of  Afghanistan’s road network is about 123,000 kilometers, but nearly 80 percent are not all-season roads, meaning that during some seasons, weather conditions can make them impassable. In addition, about 63 percent of the population is more  than 2 kilometers away from an all-season road. These gaps result in the relative isolation of parts of the country and negatively affect regional and internal integration and trade. More than 90 percent of freight and almost 85 percent of intercity passenger traffic in the country is carried by roads. To help realize the region’s development potential and alleviate these transportation challenges, the $250 million Trans-Hindukush Road Connectivity Project is helping to develop existing mountain crossings into dependable, all-season roads. Currently, there are only two road crossings over the Hindukush mountain range: the Salang highway, which carries most of the cross-Hindukush traffic, and an unpaved secondary crossing between Baghlan and Bamiyan. The project will carry out civil works for the upgrading of 152 kilometers of the Baghlan-to-Bamiyan road to a paved road, as well as the rehabilitation of 87 kilometers of the Salang road and tunnel. It will allow passengers and goods to cross the Hindukush mountain range throughout the year— a vital transportation need. For more information on the World Bank’s work in the region, visit www.worldbank.org/sar. THE REGIONS 47 Advancing the Global Development Agenda with New Possibilities for Engagement F iscal 2015 was marked by ambitious agendas and historic global agreements. In fiscal 2016, expectations were high that the international community would begin to deliver on its promises, particularly in addressing some of the most daunting challenges the world has faced and against stiff global economic headwinds. In this context, the World Bank Group—IBRD, IDA, IFC, and MIGA—began to envision new possibilities for engagement and collaboration within this rapidly changing world. Leveraging leadership The World Bank Group (WBG) provided transformative leadership in a number of areas. In partnership with the United Nations and the Islamic Development Bank, the Bank Group launched a new financing facility for the Middle East and North Africa region that provides concessional financing to middle-income countries that host the majority of Syrian refugees, such as Jordan and Lebanon. At the Supporting Syria and the Region conference in London, WBG President Jim Yong Kim announced a forthcoming joint initiative with the government of Jordan and the U.K. Department for International Development to attract international financing in return for work permits for refugees—an unprecedented proposal that would create mutual benefit for host communities and the forcibly displaced. With leadership from President Kim, together with allies such as IMF Managing Director Christine Lagarde, the Bank Group worked this fiscal year to highlight the important economic challenges the Syrian crisis presents and to demonstrate that it is the collective responsibility of the global community to take action. Bank Group participation in the first World Humanitarian Summit in Istanbul signaled its commitment to address protracted and recurring crises within its mandate and to work to complement humanitarian and peace-building efforts through development support. A joint statement deliv- ered at the event by seven multilateral development banks (MDBs) announced their commitment to a collective response to the forced displacement crisis. The Bank Group leveraged its role as the 2016 chair of the group of MDB heads to advance the agendas on forced displacement, climate change, and infrastructure, with the aim of moving beyond global agreements to meaningful operational out- comes. On all three topics, a joint position has been agreed by nine MDBs, along with concrete commitments to action. The Bank Group has demonstrated leader- ship in moving progress forward, for instance, by cohosting the first Global Infra- structure Forum as a key follow-up to the Addis Ababa Action Agenda. More broadly, the Bank Group pushed for the inclusion of new members—the Asian Infrastructure Investment Bank, New Development Bank, and the Islamic Development Bank—to the MDB heads group, recognizing that collaboration is the only way forward to address common challenges. WBG Spring and Annual Meetings continue to be important global platforms for convening partners and advancing the agenda on priority issues. The 2016 Spring Meetings yielded critical commitments in several areas, including forced displace- ment, the empowerment of girls and women, and development finance. At a flag- ship event, Queen Rania of Jordan spoke movingly about the human costs of forced 48 THE WORLD BANK ANNUAL REPORT 2016 A participant speaks at the Civil Society Townhall that was held during the 2015 Annual Meetings of the World Bank Group and International Monetary Fund in Lima, Peru. (© Franz Mahr/World Bank) displacement. The event brought together UN Secretary-General Ban Ki-moon and other key stakeholders to forge a global consensus on the need for an integrated humanitarian–development response. U.S. First Lady Michelle Obama delivered an impassioned call for adolescent girls’ education and empowerment, while President Kim announced a $2.5 billion investment over 5 years in education projects target- ing girls. The meetings concluded with a high-level panel featuring Bill Gates, who shared his vision for the future of development finance and provided a strong endorsement of the value of IDA in mobilizing development results. Two hundred parliamentarians who gathered the same week for the annual Conference of the Parliamentary Network on the WBG and IMF echoed this endorsement. The group’s leadership recognized the significant role that IDA plays in the economic develop- ment of poor countries (see worldbank.org/parliamentarians). Forging alliances WBG issue-based advocacy efforts throughout the rest of fiscal 2016 involved an increasingly diverse set of partners. The institution joined forces with a growing coalition to elevate investments in the early years of life as a priority issue for coun- tries’ economic growth and competitiveness. At the WBG annual Foundations Advi- sory Council meeting, global foundation presidents indicated their support for a newly formed alliance between the Bank Group and UNICEF to advance program- matic interventions and global advocacy efforts on early childhood development. The Bank Group also launched a global partnership with the Novak Djokovic Foun- dation, building on its operational collaboration on early childhood development in Serbia (see worldbank.org/foundations). In the run-up to the 21st Conference of Parties (COP 21) climate change talks in Paris, the Bank Group accelerated its engagement with global leaders and the pri- vate sector to push for putting a price on carbon pollution. In fiscal 2016, the Bank Group spearheaded the creation of the Carbon Pricing Leadership Coalition, bring- ing together 20 governments and more than 90 international corporations, which was launched at the Paris COP 21. This engagement culminated in April 2016 when President Kim, together with six heads of state and the IMF’s Christine Lagarde, called for the world to double the level of global emissions covered by carbon pric- ing by 2020. Also on the eve of COP 21, the Bank Group forged an alliance with the Vatican, which has become an influential voice on climate change following the launch of Pope Francis’ encyclical Laudato Si. With the Vatican’s support and in partnership ADVANCING THE GLOBAL DEVELOPMENT AGENDA 49 with a number of organizations, the Bank Group staged “Fiat Lux: Illuminating our Common Home,” a public art installation in St. Peter’s Square. As the Bank Group increases its engagement and leadership on the global stage, it recognizes the critical importance of strengthening country-level engagements. It made a number of efforts to connect global advocacy with localized efforts in fiscal 2016, and to engage with stakeholders at the country level. For instance, the Bank Group brought attention to its goal of ending extreme poverty by 2030 on End Poverty Day, the official UN observance day for the eradication of poverty. President Kim traveled to Ghana to highlight the country’s success in poverty reduction. The Bank Group also launched the Poverty in a Rising Africa report, which highlights the need for quality development data to accurately track progress. End Poverty Day will remain an important annual inflection point for end poverty advocacy efforts lead- ing up to 2030. The Bank Group continued to deepen its operational engagement with civil soci- ety and faith-based organizations in fiscal 2016, encouraging robust participation in policy discussions and further exploring operational collaboration (see worldbank .org/civilsociety). This fiscal year also marked the third round of consultations with stakeholders on WBG safeguards. Between August 2015 and March 2016, close to 3,000 stakeholders in 93 countries were consulted. These safeguards consultations have been the most extensive conferences undertaken by the Bank Group, part of its commitment to delivering strong environmental and social policies, which are vital to achieving its twin goals. Following the conclusion of the official consultations, the 2016 Spring Meetings Civil Society Policy Forum provided an additional opportunity for civil soci- ety organizations to engage the Bank Group on a number of issues, including taxa- tion, financial intermediaries, closing space for civil society, and human rights. Alongside its own outreach efforts, systematically measuring how key stakehold- ers perceive its work remains a priority for the Bank Group. As such, it continues to survey between 7,000 and 10,000 opinion leaders in about 40 client countries every year through its Country Opinion Survey Program. As the Country Survey data repeatedly show, WBG engagement makes a difference; those respondents who say they collaborate with the World Bank are generally more positive about its work and outreach. It is also noteworthy that significant percentages of opinion leaders con- tinue to report that the Bank must go beyond governments in its outreach efforts to be more effective. The World Bank’s innovative global engagement work responds countrysurveys.worldbank.org). directly to this call (see ­ 50 THE WORLD BANK ANNUAL REPORT 2016 Sustainably Managing the Bank’s Internal Operations T he World Bank manages its internal operations to safeguard the well-being of staff as well as the ecosystems, communities, and economies in which it works. In fiscal 2016, the Bank worked to curtail its impact on the climate and the environment while attracting, retaining, and leveraging the most talented and diverse professionals. For information beyond the highlights presented here, please consult the 2016 Global Reporting Initiative Index (see worldbank.org /corporateresponsibility). Our climate The Bank strives to be a leader in climate action with its comprehensive program to measure, reduce, offset, and report its greenhouse gas emissions. Such emissions from Bank facilities, employee air travel, vehicle fleet, and major meetings declined in fiscal 2015 by 5,000 metric tons. This was due to reduced reliance on diesel gen- erators globally, energy-efficiency upgrades to the office in Chennai, India, and decreasing electricity use at its Washington, DC, offices. Unavoidable emissions are offset through the purchase of Voluntary Emission Reduction and Certified Emission Reduction credits. These included credits from a small-scale hydropower project in Madagascar—the first run-of-the-river hydropower project and the first carbon development project in the country. Other credits originated from a Gold Standard– certified cook stove project in Rwanda and a biogas digester project in Vietnam. Our places Increasing the efficiency of how the World Bank runs its business—by managing resources, diverting waste from landfills, and fostering sustainable staff behavior— promotes sustainability while decreasing the costs of day-to-day operations. Maintaining sustainable offices. The Bank has offices in 136 countries, and it constructs, manages, and upgrades its facilities with sustainability as a guiding prin- ciple. To date, five of its overseas offices are certified by the Leadership in Energy and Environmental Design (LEED) certification program. Six offices currently in design or under construction are being prepared for certification. Also, upgrades to 10 existing buildings aim to reduce energy costs and increase efficiency. In Washing- ton, DC, where 60 percent of Bank staff are located, three buildings are LEED certi- fied. Additional energy conservation efforts are under way, estimated to reduce energy consumption by 15 percent after completion of the multiyear project. Work will include retro-commissioning one facility to identify and adjust less-than-optimal performance in equipment, lighting, and control systems; installation of photovoltaic solar panels; and replacement of a cooling tower. The greatest savings are expected from a new lighting standard to replace current fixtures with LED fixtures. Implementing smart business practices. The Bank implements strategies for cost savings and best value in the procurement of goods, services, and consulting necessary for its operations. It has established procurement review committees, which have increased the awareness by senior management of the impacts of pur- chases and enabled the Bank to address its fiscal, social, and environmental impacts simultaneously. Efficiencies in material use are also being tracked closely by the Bank. This is most evident in the use of paper in its Washington, DC, offices. While paper consumption has decreased by 37 percent since 2007, a recent uptick has been noted due to SUSTAINABLY MANAGING THE BANK’S INTERNAL OPERATIONS 51 increased use of the Bank’s Forest Stewardship Council (FSC) Chain-of-Custody– certified print shop. This change guarantees the use of sustainable paper and print- ing practices in addition to cost savings for the institution. To ensure that the impact from all paper used is minimal, the Bank’s new paper procurement criteria weighs sustainability more heavily than cost. As a result, the Bank switched from 10 percent to 30 percent postconsumer waste paper for premium coated sheets, and maintains 100 percent recycled paper for copiers. The effort has helped to migrate all paper products to FSC-certified paper. Virtual collaboration tools help Bank staff to stay connected to one another and to their clients. In fiscal 2016, staff conducted 339,000 virtual meetings, with 78,700 held in video conference–telepresence rooms, nearly 220,000 online via WebEx, and 41,000 personal conference line sessions. This practice is also proving essential for staff safety and business continuity while minimizing reliance on business travel. Simultaneously, choosing sustainable modes of transportation to commute to work is becoming easier for staff working in the Washington, DC, area. In fiscal 2016, 72 percent of staff working in Washington chose low- to no-carbon footprint options such as cycling or carpooling, compared to 52 percent in fiscal 201 1. To encourage and accommodate staff driving electric vehicles, dual electric charging stations were doubled in number to 12 in parking garages. The Washington, DC, offices also house four cafeterias that cater to the diversity of staff while safeguarding good health and environmental conscientiousness. In fiscal 2016, one cafeteria achieved two stars from the Green Restaurant Association standard. Work is under way to apply this standard to all cafeterias. Additionally, bottled-water consumption declined by 5 percent in the past fiscal year. Engaging with our communities. The Bank takes seriously its responsibility as a neighbor in its host communities. Fiscal 2016 was another record-setting year as World Bank Group staff donated $2.9 million, which was matched by the institution and resulted in $5.8 million donated into the Washington, DC, region and the world. Campaigns in 34 country offices set their own records, raising $188,000—including the corporate match—for nongovernmental organizations. Staff also responded to flooding in Myanmar and the earthquake in Ecuador with donations totaling $40,000. The local grants programs continued to support capital campaigns and performance measurement. In total, community giving was $6.6 million in fiscal 2016 (see worldbank.org/en/programs/community-connections). Our people Representing 174 nationalities, the World Bank’s 11,000 staff are its greatest resource. The institution’s human resources’ vision is to build a workforce with the right skills and behaviors in the right places at the right time, and to make the Bank the best place to work in development. The past year has seen significant progress, particularly in two areas. The launch of the Career Framework for World Bank Operations, which outlines career paths for key roles, now helps staff systematically think about and understand career oppor- tunities across the institution. In addition, the Bank Group completed the Economic Dividends for Gender Equality (EDGE) certification process for the Washington, DC, location, achieving the initial level of “EDGE Assess.” The assessment covered five areas: company culture; leadership development, training, and mentoring; recruit- ment and promotion; flexible working; and equal pay for equivalent work. The cer- tification is effective for two years, during which time the Bank Group will complete work on an action plan to address the findings and progress to the second level, “EDGE Move,” as well as conduct the assessment in non-U.S. locations. Cultivating staff knowledge. Learning is a key enabler of the Bank’s ability to deliver solutions to clients, share cutting-edge knowledge, and retain top talent. While the percentage of staff participating in at least one learning event decreased slightly in fiscal 2016, expenditures in staff learning increased considerably from fiscal 2014 and 2015, especially the amount spent on “learning received.” The num- ber of learning activities delivered also increased, although it has not returned to fiscal 2014 levels. In January 2016, President Kim launched the Open Learning Campus (OLC) as a single destination to accelerate development solutions through learning for WBG staff, clients, and global partners (see olc.worldbank.org). 52 THE WORLD BANK ANNUAL REPORT 2016 Resolving workplace conflicts. Promoting a positive and respectful workplace helps the Bank to retain its talent. Conflict, a natural occurrence in the workplace, is addressed through the Bank’s Internal Justice System (IJS), which offers informal, formal, and investigative services. During fiscal 2016, 1,404 cases were opened by the informal services (Respectful Workplace Advisors, Ombuds, Mediation), 126 cases were opened by the formal services (Peer Review Services, Administrative Tri- bunal), and 249 cases were opened by the investigative services (Ethics and Busi- ness Conduct, Integrity). This year, for the first time in five years, the IJS caseload dropped. The IJS continued its outreach efforts, with numerous visits to Country Offices. Safeguarding staff voice. Staff rights and interests are also represented by the WBG Staff Association (SA). More than 10,500 staff globally are members of the SA, with an additional 90 Country Office Staff Associations established around the globe. In fiscal 2016, SA representatives, elected by staff, advocated for strengthen- ing benefits and support systems to maintain the Bank Group as an employer of choice; taking action on the outcomes of the staff engagement survey; and imple- menting fair treatment of staff identified for redeployment or exit as a result of the strategic staffing exercise. TABLE 15  WORLD BANK CORPORATE SUSTAINABILITY IMPACTS INDICATOR FY14 FY15 FY16 RELATED INDICATORS Absolute GHG emissions 165,708 160,484 — SDG13; GRI EN15-17;   (metric tons of CO2 equivalent)a, c CDP CC7-10, 14 GHG emissions/FTE (metric tons of CO2   equivalent per FTE)a, b, c 13.4 13.5 — Global energy use (GJ) c 519,589 538,966 — SDG7; GRI EN3-5; Global energy use intensity (GJ/m2)c 0.88 0.90 — CDP CC10-11 Waste diverted from landfill (%)d 55 56 57 SDG12; GRI EN23 PCW recycled paper use (both copy paper SDG12; GRI EN1-2   and print shop, %)d 68 60 62 Total community giving ($ millions) e $6.0 $6.6 $6.7 GRI EC1 Total full-time staff (World Bank) 12,328 11,933 11,605 SDG8; GRI LA1 Non–U.S. based (%) 39.6 39.6 41.0 Short-term consultants/temporaries   (World Bank, FTEs) 4,033 4,295 4,757 Employee engagement (World Bank, %) 71 70 73 Diversity index (World Bank) 0.86 0.86 0.89 SDG8; GRI LA12 Women managers (%) 37.6 37.8 37.5 Part II managers (%) 40.8 41.4 43.5 Women GF+ (technical level, %) 42.5 43.1 43.9 Sub-Saharan/Caribbean GF+ (%) 11.7 11.6 12.2 Average days of training per staff in  headquarters 3.2 3.2 3.2 SDG8; GRI LA9 Average days of training per staff in   country offices 3.8 3.6 3.5 Note: — = not available; CDP = Carbon Disclosure Project; CDP CC = CDP’s Climate Change indicators; FTE = full-time equivalent (staff); GF+ = salary grade GF or higher, that is, professional; GHG = greenhouse gas; GJ = gigajoule; GRI = Global Reporting Initiative; GRI EN = GRI’s Environmental indicators; GRI LA = GRI’s Labor Practices indicators; PCW = postconsumer waste; SDG = Sustainable Development Goal. a. Data are for all World Bank offices worldwide and include Scope 1, 2, and 3 emissions. GHG emissions data lag by one fiscal year. b. FTE data come from World Bank Human Resources. c. Data are for all World Bank offices worldwide. d. Data are for Washington, DC, offices only. e. Total includes giving via the annual Community Connections Campaign (CCC) workplace giving program, local grants, and disaster relief drives. CCC and disaster relief drives include World Bank Group corporate matching funds for IBRD/IDA, IFC, and MIGA. This total does not include in-kind donations. SUSTAINABLY MANAGING THE BANK’S INTERNAL OPERATIONS 53 Ensuring Accountability and Improving Operations at the World Bank Accounting for operational performance To ensure that it holds itself accountable to its clients and shareholders and main- tains the highest performance standards in development, the World Bank works with the Inspection Panel and the Independent Evaluation Group, both of which operate independently from Bank management. The Inspection Panel was established in 1993 by the World Bank’s Board of Execu- tive Directors as an independent complaints mechanism for people and communi- ties who believe that they or their environment have been, or are likely to be, harmed by a project funded by the IBRD or IDA. The panel is composed of three members from different countries, chosen for their institutional development expertise, and a small secretariat. During fiscal 2016, the panel received seven complaints and carried out investi- gations in Kosovo and Uganda. As part of its role in promoting institutional learning and improving the development effectiveness of Bank operations, the panel released a report on involuntary resettlement, the first in a series of reports drawing on les- sons from its 22-year caseload. The Inspection Panel’s annual report is available online at worldbank.org/inspectionpanel. The Independent Evaluation Group (IEG) is an independent unit that reports directly to the Board of Directors. IEG assesses the results of work across the World Bank Group (WBG) and offers recommendations for improvement. IEG’s evaluations contribute to enhancing internal accountability within the WBG. Through its recom- mendations, IEG also contributes to internal learning and improvements by informing the formulation of new directions, policies and procedures, and country and sector strategies for WBG work. IEG’s most recent annual review of WBG results and performance discusses how mechanisms for integrating gender into WBG projects and country strategies are working, and to what extent they provide meaningful information about progress and results on gender. The analysis aims to inform efforts to strengthen the approach to documenting, assessing, and evaluating results as part of the rollout of the new WBG gender strategy. IEG’s annual report is available online at ieg.worldbank.org. Ensuring integrity and accountability for results The World Bank ensures the integrity of Bank-financed projects and the efficacy of internal operations through the work of two of its units—the Integrity Vice Presi- dency and the Internal Audit Vice Presidency—both of which report directly to the World Bank Group President. The Integrity Vice Presidency (INT) is mandated to prevent, deter, investigate, and manage litigation relating to fraud and corruption in Bank-financed projects. As a result of INT’s investigations, during fiscal 2016, the Bank sanctioned 73 entities while preventing about $138 million spread across 20 contracts from being awarded to companies that had attempted to engage in misconduct. INT also agreed on 18 settlements with companies involved in sanctionable practices and is working with them to improve their compliance standards. The Bank, together with other partic- 54 THE WORLD BANK ANNUAL REPORT 2016 ipating multilateral development banks, recognized 140 cross-debarments. Increas- ingly multijurisdictional and complex, investigations are helping the Bank to tackle risks associated with certain sectors, high-value contracts, and in fragile states. INT also advises on the design and implementation of risk mitigation and moni- toring tools. This year INT, in cooperation with the government of France and OECD, organized an international meeting on Security, Corruption, and Development in which more than 16 members of the World Bank’s International Corruption Hunters Alliance participated. The high-level meeting focused on tax evasion, illicit financial flows, transnational bribery, mechanisms and information sharing to strengthen international cooperation against corruption, and new financial investigative tech- niques. INT’s annual report is available online at worldbank.org/integrity. The Internal Audit Vice Presidency (IAD) is an independent, objective assurance and consulting activity that helps to improve WBG operations. It assists the insti­ tution in accomplishing its objectives by evaluating the effectiveness of WBG governance, risk management, and control processes. Furthermore, IAD advises management in developing control solutions, and monitors the implementation of management’s corrective actions. In fiscal 2016, IAD conducted targeted assurance reviews on key foundational business processes and significant elements of the WBG strategy implementation, and advised management in areas where it could add value to the ongoing change initiatives. Topics that were covered included the collection and production of development data, business continuity management, the Access to Information Policy, the institution-wide Expenditure Review, staff learning, donor reporting, ­ ­ conflict-of-interest management, and information security. IAD’s annual and quar- terly reports are available online at worldbank.org/internalaudit. The World Bank Policy on Access to Information T he World Bank’s Access to Information (AI) Policy became effective on July 1, 2010, and was most recently revised in 2015. The AI Policy remains at the core of the Bank’s efforts to build a culture of transparency, accountability, and civic participation across the institution. This approach is invaluable in our consultations with stakeholders and in our efforts to spur citizen engagement to improve outcomes. The AI Policy provides public access to any information in the Bank’s possession that is not on its list of 10 exceptions, allowing the Bank to proactively release a wealth of information to the public. The AI Policy has provided the framework and enabling environment for the Bank to be a leader, convener, and partner in global transparency and openness. For example, in 2016, IDA was ranked sixth on the Aid Transparency Index for the organization Publish What You Fund. The AI Policy represents a vital component of the Bank’s open development agenda, and has been the catalyst for other World Bank transparency initiatives, such as Open Data, the Open Knowledge Repository, Open Operations, Open Finances, and Open Contracting. The main entry points to Bank information are the online Projects and Operations portal, which provides detailed information on lending operations, and the  Documents and Reports  repository, which contains more than 200,000 documents freely accessible to the public. For more information, and to submit requests for information to the World Bank, visit worldbank.org/en/access-to-information. ENSURING ACCOUNTABILIT Y AND IMPROVING OPERATIONS 55 The Roles and Resources of the World Bank Operating as part of the World Bank Group The comparative advantage of the World Bank Group (WBG) is its ability to address complex problems on a global scale. This ability comes from the powerful combina- tion of country depth and global breadth, public and private sector instruments and relationships, multisector knowledge, and the ability to mobilize and leverage finance. Before developing a new partnership strategy with a country client, the Bank completes a diagnostic (called a Systematic Country Diagnostic), which identifies the barriers to eliminating extreme poverty and boosting shared prosperity in the country. In concert with partners, experts from Global Practices and Cross-Cutting Solution Areas work with country-based staff, the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA) to prioritize the Bank Group’s program of financial, analytical, advisory, and convening support for the country, based on the institution’s comparative advantage and the client’s prior- ities. This support comes together in the Country Partnership Framework or strat- egy. At the end of this fiscal year (2 years after the new model was introduced), the Bank had completed diagnostics in 42 countries and new partnership strategies in 28 countries (see worldbank.org/en/projects-operations/country-strategies). WBG staff also work on global challenges, including gender, jobs, climate change, fragility, forced displacement, and others. Cross-Cutting Solution teams drive coor- dination across the Bank Group, its regions, and technical practices. On climate change, for example, the Bank Group engages at the global level on carbon pricing and dialogue about climate; and it helps countries to assess policy and investment choices to meet their country-level commitments. The World Bank is accountable to its shareholders and the public through a set of feedback and accountability mechanisms, including the Corporate Scorecard, the IDA (International Development Association) Results Monitoring System, and regular opportunities to discuss progress on operations with its Board of Executive Direc- tors. It continues to refine a set of indicators to track progress on client results and the effectiveness of its operations to demonstrate progress. IBRD financial commitments, resources, and services The International Bank for Reconstruction and Development (IBRD) is a global devel- opment cooperative owned by its 189 member countries. As the largest develop- ment bank in the world, it supports the World Bank Group’s mission by providing loans, guarantees, risk management products, and advisory services to middle- income and creditworthy low-income countries, as well as by coordinating responses to regional and global challenges. (See worldbank.org/ibrd.) In fiscal 2016, new IBRD lending commitments amounted to $29.7 billion for 114 operations. (See the regional lending tables on page 23 and the sector and theme lending tables on page 62.) Resources and financial model To fund development projects in member countries, IBRD finances its loans from its own equity and from money borrowed in the capital markets through the issuance of World Bank bonds. IBRD is rated Aaa by Moody’s and AAA by Standard & Poor’s, 56 THE WORLD BANK ANNUAL REPORT 2016 FIGURE 13  IBRD BUSINESS MODEL Equity IDA and trust funds Loans Borrowings Income Investments Other development activities and investors view its bonds as high-quality securities. Its funding strategy is aimed at achieving the best long-term value on a sustainable basis for borrowing members. Its ability to intermediate the funds it raises in international capital markets to devel- oping member countries is important in helping to achieve its goals. IBRD issues its securities through both global offerings and bond issues tailored to the needs of specific markets or investor types. It issues bonds to investors in various currencies, maturities, and markets, and at fixed and variable terms. It often opens up new markets for international investors by issuing new products or bonds in emerging market currencies. IBRD’s annual funding volumes vary from year to year. IBRD’s strategy has enabled it to borrow at favorable market terms and pass the savings on to its borrowing members. Funds not immediately deployed for lending are held in IBRD’s investment portfolio to provide liquidity for its operations. In fiscal 2016, IBRD raised U.S. dollar equivalent (USDeq) 63 billion by issuing bonds in 21 currencies. IBRD’s equity comprises primarily paid-in capital and reserves. Under the terms of the general and selective capital increase resolutions approved by the Board of Governors on March 16, 201 1, subscribed capital is expected to increase by $87.0 billion, $5.1 billion of which will be paid in. The sub- scription periods for selective capital increase and general capital increase are expected to end in March 2017 and March 2018, respectively, following the approval by the Board of Executive Directors of extension requests by shareholders. As of June 30, 2016, the cumulative increase in subscribed capital totaled $73 billion. Related paid-in amounts in connection with the capital increase were $4.3 billion. As a cooperative institution, IBRD seeks not to maximize profit but to earn enough income to ensure its financial strength and sustain its development activi- ties. Of fiscal 2016 allocable net income, the Board of Executive Directors recom- mended to the Board of Governors the transfer of $497 million to IDA and the allocation of $96 million to the General Reserve. As part of IBRD’s lending, borrowing, and investment activities, IBRD is exposed to market, counterparty, and country credit risks. To manage these risks, IBRD has put in place a strong risk management framework, which supports management in its oversight functions. The framework is designed to enable and support IBRD in achieving its goals in a financially sustainable manner. One summary measure of IBRD’s risk profile is the ratio of equity to loans, which is closely managed in line with its financial and risk outlook. This ratio stood at 22.7 percent as of June 30, 2016. World Bank Green Bonds Since 2008, IBRD has issued more than $9.1 billion in 18 currencies through bench- mark bonds in U.S. dollars, euros, and Australian dollars; smaller bonds in other cur- rencies; and structured green bonds. World Bank Green Bonds have supported 84 climate-related projects in 24 member countries, where they have increased energy efficiency and helped to develop renewable energy among other impacts. IBRD issued its first World Bank Green Bond in 2008, making it a pioneer in the green bond market. Since then, its global issuances to both institutional and retail ROLES AND RESOURCES OF THE WORLD BANK 57 investors, as well as its documentation of its green bond process, use of a second opinion from Cicero, and issuance in 18 currencies have paved the way for the development of the market to a broad range of types of issuers and markets. The Bank has also pioneered efforts to harmonize reporting on the impact of green bonds by other multilateral institutions as an important tool for investors to evaluate the nonfinancial benefits of their investments.  (See treasury.worldbank.org/cmd /htm/WorldBankGreenBonds.html.) Risk management products IBRD offers financial products that allow clients to efficiently fund their development programs and manage risks related to currencies, interest rates, commodity prices, and disasters. In fiscal 2016, the Bank’s Treasury executed USDeq 1.1 billion in hedg- ing transactions, including USDeq 790 million in currency conversions and USDeq 349 million in interest rate conversions, to assist borrowers in managing currency and interest rate risks over the life of their IBRD loans. The Bank helped Uruguay to limit its exposure to future oil price increases with the execution of a $330 million hedge transaction, the first time that the Bank has entered into a derivative contract with a member country to manage exposure to commodity price volatility. Disaster risk management transactions included a $43 million transaction to renew coverage of the Pacific Disaster Insurance Program, which provides protection against earth- quakes and tropical cyclones in the Cook Islands, the Marshall Islands, Samoa, Tonga, and Vanuatu, on behalf of IDA. The Bank’s Treasury executed swap transactions totaling USDeq 12.5 billion to manage the risks of IBRD’s balance sheet and USDeq 1.5 billion to manage the risks of IDA’s balance sheet. (See treasury.worldbank.org /bdm/htm/risk_financing.html.) IDA financial commitments, resources, and services The International Development Association (IDA) is the world’s largest multilateral source of concessional financing for the poorest countries. It provides concessional development credits, grants, and guarantees in support of these countries’ efforts to increase economic growth, reduce poverty, and improve the living conditions of the poor. In fiscal 2016, 77 countries were eligible for IDA assistance. In addition, India, which graduated from IDA in fiscal 2014, will receive transitional support on an exceptional basis through the IDA17 period, which covers fiscal 2015–17. (See worldbank.org/ida.) In fiscal 2016, new IDA lending commitments amounted to $16.2 billion for 161 operations, including $14.4 billion in credits, $1.3 billion in grants, and $500 million in guarantees. (See the regional breakdown tables on page 23 and the sector and theme breakdown tables on page 63.) Resources and financial model IDA is funded largely by contributions from developed and middle-income partner countries. Additional financing comes from transfers from IBRD’s net income, grants from IFC, and borrowers’ repayments of earlier IDA credits. Development partners meet every three years to replenish IDA’s funds and review its policies. Administra- tive expenses are recovered primarily through service charges paid by recipient countries. Under the IDA17 Replenishment, total resources amount to 37.7 billion in Special Drawing Rights (SDR) (equivalent to $56.8 billion). (This figure reflects updates made after the replenishment discussions.) IDA’s commitment authority is denomi- nated in SDRs. The U.S. dollar equivalents presented here are based on the reference exchange rate for IDA17 and provided for illustrative purposes. A total of 51 partners, 4 of which are new contributing partners, are providing SDR 17.3 billion ($26.1 billion) in grants, of which SDR 0.6 billion ($930 million) is the grant element from concessional partner loan contributions. Partners are providing SDR 2.9 billion ($4.4 billion) in concessional partner loans or SDR 2.2 billion ($3.4 billion) excluding the grant element of the loans. Contributing partners are also 58 THE WORLD BANK ANNUAL REPORT 2016 FIGURE 14  IDA BUSINESS MODEL Repayment of concessional loans from members Loan repayments Loans and grants WBG transfers Members • Equity contributions IDA Recipients • Concessional loans • Compensation for service charges Service and commitment Administrative expenses, net charges and interest on hard-term loans expected to provide SDR 3.0 billion ($4.5 billion) in compensation for debt relief under the Multilateral Debt Relief Initiative. Credit reflows (principle and interest repayments) from IDA recipients will provide SDR 9.9 billion ($15.0 billion). This figure includes SDR 1.9 billion ($2.8 billion) from contractual accelerated repay- ments of outstanding credits from IDA graduates and voluntary prepayments. Trans- fers from IBRD and IFC, including associated investment income, amount to SDR 1.9 billion ($2.9 billion). These transfers are approved annually by IBRD’s Board of Gov- ernors and IFC’s Board of Directors, based on evaluations of the institutions’ annual results and financial capacities. The IDA17 commitment authority was increased by $5 billion this fiscal year. Of these funds, $3.9 billion will go to the establishment of the new Scale-Up Facility for the remainder of the IDA17 period, $900 million will replenish the Crisis Response Window, and $200 million will support assistance to refugees in the Middle East and North Africa. This one-time measure was financed by resources freed up through the more efficient use of IDA’s liquidity. The replenishment process for IDA18, which covers fiscal 2018–20, is under way. It culminates in December 2016. IDA17 Replenishment Anchored in the World Bank Group Strategy, the ambitious IDA17 policy package includes a range of policy commitments and performance indicators under IDA’s four-tier Results Measurement System. The overarching theme of maximizing devel- opment impact focuses on helping IDA countries better leverage private resources, public resources, and knowledge, with greater emphasis on both results and cost- FIGURE 15  IDA REPLENISHMENTS BILLIONS OF DOLLARS 26.4 26.1 25.1 14.6 14.9 6.3 6.3 3.9 5.3 4.5 3.0 3.2 3.5 n.a. n.a. IDA15 FY09–11 IDA16 FY12–14 IDA17 FY15–17 IDA internal resources a Donor contributions b IBRD and IFC transfers Concessional partner loans (net of grant element) Donor compensation for MDRI debt forgiveness Note: n.a. = not applicable. Data reflect final agreed replenishment reports and exchange rates used during the replenishment discussions. a. IDA internal resources include principal repayments, charges, and investment income. b. Net of structural financing gap. ROLES AND RESOURCES OF THE WORLD BANK 59 TABLE 16  TOP-10 COUNTRY BORROWERS: FISCAL 2016 MILLIONS OF DOLLARS IBRD IDA COUNTRY COMMITMENT COUNTRY COMMITMENT Peru 2,850 Ethiopia 1,862 India 2,820 Vietnam 1,670 Kazakhstan 2,058 Bangladesh 1,557 China 1,982 Pakistan 1,460 Indonesia 1,700 Nigeria 1,075 Ukraine 1,560 India 1,025 Egypt, Arab Rep. 1,550 Tanzania 864 Iraq 1,550 Kenya 646 Poland 1,504 Congo, Dem. Rep. 600 Colombia 1,400 Ghana 500 Note: Amounts for multicountry operations are allocated across borrowers. TABLE 17  ACTIVE PORTFOLIO NET COMMITMENTS BILLIONS OF DOLLARS, AS OF JUNE 30, 2016 REGION IBRD IDA TOTAL Africa 5.5 50.5 56.1 East Asia and Pacific 21.8 10.6 32.3 Europe and Central Asia 24.8 2.4 27.2 Latin America and the Caribbean 26.9 1.9 28.8 Middle East and North Africa 13.7 0.8 14.5 South Asia 17.6 30.9 48.5 Total 110.2 97.1 207.3 Note: Numbers may not add to totals because of rounding. effectiveness. The four IDA17 special themes—inclusive growth, gender equality, climate change, and fragile and conflict-affected states—aim to strengthen IDA’s engagement on frontier issues at the global, regional, and country levels. Budgeting effectively to support increased client demand During the fiscal 2017–19 planning period, the World Bank Group will grow and improve client services in order to increase support to its clients’ efforts at achieving the Sustainable Development Goals, implementing the Financing for Development objectives, and responding to the impacts of climate change. At the same time, the Bank Group will need to respond to the immediate needs of clients as they adjust to a weaker global economy. As the Bank Group leverages the effect of recent mea- sures taken to increase revenues and manage costs, the budget environment is expected to improve going forward. The Bank Group is making further progress on its financial sustainability targets, and leveraging private sector resources and solu- tions where possible. The World Bank Group aligns its resources using a streamlined “W” process for strategic planning, budgeting, and performance review. The five points of the “W” represent specific decision points in the process. W1:  Senior management sets strategic planning priorities for the World Bank Group. W2:  Management at the vice presidential unit (VPU) level reviews and responds to corporate priorities. W3:  Senior management refines the guidance on priorities and determines the programs and three-year, unit-level budget envelopes for each institution within the World Bank Group. W4:  VPU-level management develops work programs and staffing plans in response to determined priorities and budget envelopes. W5:  Final funding decisions conclude the planning for the subsequent three fiscal years. The Board confirms and formally approves the VPU budget envelopes and work programs. 60 THE WORLD BANK ANNUAL REPORT 2016 Adapting to challenges in a global operating environment Low interest rates, potential financial market dislocations, weak commodity prices, the slowing of growth in key countries and the risks of wider economic slowdown, and geopolitical tensions and political uncertainties have created a challenging operating environment for the World Bank. These challenges affect the Bank’s client countries as well, many of which are oil or commodity exporters facing fiscal pres- sures. Several client countries also face reduced trade, capital outflows, and potential turbulence in the event of policy normalization in developed economies. All coun- tries need to sustain reforms for long-term structural growth and employment creation. The impact on the Bank is felt mainly through increased demand for long-term structural support from a wide range of client countries. The Bank seeks to support all clients’ developmental needs in line with strategic priorities while prudently man- aging its capital and funding costs. It also continues to monitor operational risks, including the growing threat of data and information security breaches and external events that can affect its business continuity and the physical security of its staff. As the world’s leading multilateral development institution, the Bank continues to innovate and adapt to meet the needs of individual countries, but also to address the needs of global public goods. Climate change, pandemics, and forced displace- ment are high priorities. To address them and other challenges, the Bank is devel- oping innovative forms of financing in partnership with the public and private sectors. The emergence of new multilateral development institutions creates both oppor- tunities and challenges for creative partnerships, and requires fresh thinking about the Bank’s financial structure. The “Forward Look,” an internal strategic exercise launched earlier this year to deliberate the medium- to long-term future of the insti- tution, is examining demand for the Bank’s services and the ways the institution manages its financial capacity across the World Bank Group to meet these demands, with a focus on optimal leverage and mobilization. ROLES AND RESOURCES OF THE WORLD BANK 61 TABLE 18  IBRD OPERATIONAL SUMMARY: FISCAL 2012–16 MILLIONS OF DOLLARS INDICATOR FY12 FY13 FY14 FY15 FY16 Commitments 20,582 15,249 18,604 23,528 29,729   Of which development policy lending 10,547a 7,282a 7,997 7,207 13,210 Gross disbursements 19,777 16,030 18,761 19,012 22,532   Of which development policy lending 9,052 5,972 9,786 8,935 12,068 Principal repayments (including prepayment) 11,970 9,470 9,805 9,005 9,327 Net disbursements 7,806 6,361 8,956 10,007 13,204 Loans outstanding 136,325 143,776 154,021 157,012 169,655 Undisbursed loans 62,916 61,306 58,449 60,21 1 65,909 Allocable income 998 968 769 686 593 Usable equity 37,636 39,711 40,467 40,195 39,424 Equity-to-loans ratio (%) 27.0 26.8 25.7 25.1 22.7 a. This figure from past World Bank annual reports was revised to include development policy guarantee commitments. TABLE 19  IBRD LENDING BY THEME AND SECTOR: FISCAL 2012–16 MILLIONS OF DOLLARS THEME FY12 FY13 FY14 FY15 FY16 Economic Management 1,160 353 461 715 1,340 Environment and Natural Resources  Management 2,429 1,308 1,231 1,836 3,758 Financial and Private Sector Development 3,313 2,700 5,102 6,214 6,838 Human Development 2,672 1,534 1,803 1,916 2,652 Public Sector Governance 2,754 2,082 3,441 1,508 4,745 Rule of Law 98 448 244 730 406 Rural Development 1,921 1,771 1,844 1,745 2,974 Social Development, Gender, and Inclusion 405 753 713 1,165 449 Social Protection and Risk Management 2,244 2,025 1,230 3,357 2,563 Trade and Integration 1,437 1,031 403 838 1,555 Urban Development 2,150 1,243 2,132 3,503 2,447 Theme Total 20,582 15,249 18,604 23,528 29,729 SECTOR Agriculture, Fishing, and Forestry 1,163 851 801 797 547 Education 1,296 1,065 1,123 1,477 1,754 Energy and Mining 2,848 1,208 2,356 3,150 4,557 Finance 1,410 1,609 1,293 3,404 2,634 Health and Other Social Services 2,489 1,822 1,598 2,949 2,399 Industry and Trade 713 747 1,054 1,653 3,426 Information and Communications 94 102 262 77 186 Public Administration, Law, and Justice 5,381 4,405 4,806 4,318 5,775 Transportation 3,379 2,600 4,032 3,086 4,330 Water, Sanitation, and Flood Protection 1,807 840 1,279 2,616 4,121 Sector Total 20,582 15,249 18,604 23,528 29,729 Total World Bank Lending (IBRD + IDA) 35,335 31,547 40,843 42,495 45,900 Note: Numbers may not add to totals because of rounding. 62 THE WORLD BANK ANNUAL REPORT 2016 TABLE 20  IDA OPERATIONAL SUMMARY: FISCAL 2012–16 MILLIONS OF DOLLARS INDICATOR FY12 FY13 FY14 FY15 FY16 Commitments 14,753 16,298 22,239 18,966 16,171   Of which development policy lending 1,827 1,954 2,489 2,597 1,890 Gross disbursements 1 1,061 11,228 13,432 12,905 13,191   Of which development policy lending 2,092 1,662 2,644 2,005 2,564 Principal repayments (including prepayment) 4,023 3,845 3,636 4,085 4,327 Net disbursements 7,037 7,371 9,878 8,820 8,806 Credits outstanding 123,576 125,135 136,011 130,878 136,735 Undisbursed credits 37,144 39,765 46,844 47,288 49,476 Undisbursed grants 6,161 6,436 6,983 6,637 6,099 Development grant expenses 2,062 2,380 2,645 2,319 1,232 TABLE 21  IDA LENDING BY THEME AND SECTOR: FISCAL 2012–16 MILLIONS OF DOLLARS THEME FY12 FY13 FY14 FY15 FY16 Economic Management 133 131 495 430 546 Environment and Natural Resources Management 1,568 1,163 2,652 1,329 1,122 Financial and Private Sector Development 1,430 1,680 2,926 2,282 2,385 Human Development 2,289 2,814 3,389 4,128 2,262 Public Sector Governance 1,281 1,708 1,811 1,325 1,124 Rule of Law 28 142 47 95 61 Rural Development 3,521 2,880 4,593 3,337 3,131 Social Development, Gender, and Inclusion 842 556 352 570 534 Social Protection and Risk Management 1,258 1,931 2,356 3,220 2,882 Trade and Integration 435 1,676 1,239 889 698 Urban Development 1,967 1,618 2,380 1,362 1,424 Theme Total 14,753 16,298 22,239 18,966 16,171 SECTOR Agriculture, Fishing, and Forestry 1,971 1,261 2,257 2,230 1,657 Education 1,663 1,666 2,334 2,057 1,309 Energy and Mining 2,151 2,071 4,333 1,360 2,645 Finance 354 446 691 649 458 Health and Other Social Services 1,701 2,541 1,755 3,698 3,303 Industry and Trade 638 685 753 659 729 Information and Communications 63 126 119 245 61 Public Administration, Law, and Justice 3,347 3,586 4,031 3,862 2,836 Transportation 1,066 2,535 2,914 2,064 2,039 Water, Sanitation, and Flood Protection 1,798 1,381 3,052 2,144 1,132 Sector Total 14,753 16,298 22,239 18,966 16,171 Total World Bank Lending (IBRD + IDA) 35,335 31,547 40,843 42,495 45,900 Note: Numbers may not add to totals because of rounding. OPERATIONAL SUMMARY AND WORLD BANK LENDING 63 Committed to Results T he World Bank helps to promote sustainable development in partner countries by providing financing, sharing knowledge, and working with the public and private sectors. Delivering integrated solutions to help countries address their development challenges requires a focus on results. In recent years, the World Bank has made important contributions across many areas to support development results achieved by its partner countries, as shown in these selected examples from around the world. The accom- panying map shows the current borrowing eligibility of member countries. For more informa- tion, visit worldbank.org/results. 1 Argentina: Eliminated 5,052 tons of 8 China: In Fujian Province, over 5,400 km ozone-depleting potential by reducing of rural roads were rehabilitated between its consumption of chlorofluorocarbons, 2011 and 2014, reducing travel time to halons, and carbon tetrachloride access health services and markets by between 1997 and 2010. 42 percent. 2 Bangladesh: From 2012 to 2015, 9 Colombia: In Bogotá, the number of 3.7 million people in rural areas were people at risk from natural disasters provided with access to electricity from declined from 604,000 to 236,972 as renewable sources through a project that a result of the Disaster Vulnerability connects approximately 50,000 solar Reduction Project. home systems per month. 10 Democratic Republic of Congo: 3 Bolivia: More than 16,000 families have 1.2 million people in urban areas were benefited from a project to improve provided with access to improved access to markets for smallholder farmers drinking water from 2014 to 2015. in rural areas through self-managed 11 Arab Republic of Egypt: As a result of grassroots organizations. the Vehicle Scrapping and Recycling 4 Bosnia and Herzegovina: From mid- Program of Activities, over 130,000 2014 to end-2015, more than 160,000 tons of carbon dioxide emissions were people benefited from rehabilitated avoided in 2013 and 2014. infrastructure in flood-affected areas, 12 Ethiopia: Access to agriculture extension while about 94,000 people received services rose from 4 million to 13 million construction materials and other between 2005 and 2015. emergency goods. 13 Grenada: Regulatory reforms helped 5 Brazil: The Amazon Region Protected Grenada to increase tourism revenue by Areas Project has helped to protect nearly 35 percent from 2013 to 2014. around 60 million hectares of rainforest since 2012. 14 Guatemala: A rural economic development program enhanced 6 Cambodia: 80 percent of babies the capacities of 20,000 small-scale nationwide were delivered by trained producers and small businesses, 90 personnel at health facilities by the end percent of whom were indigenous of 2015, up from 39 percent in 2008. peoples. 7 Cameroon: The number of people in 15 Haiti: 5,571 medical personnel and urban areas with access to all-season community workers were trained roads within a 500-meter range between 2010 and 2013 as part of the increased from 31,000 to 435,000 Cholera Emergency Response Project. between 2009 and 2015. 64 THE WORLD BANK ANNUAL REPORT 2016 Russian Federation Russian Fed. Poland Belarus Ukraine Kazakhstan Moldova Mongolia Romania 27 Georgia Uzbekistan Kyrgyz Rep. 4 Bulgaria Armenia Azerbaijan 8 Turkey Turkmenistan Tajikistan Rep. of Tunisia Syrian Islamic China Korea Lebanon A.R. Afghanistan Rep. Morocco West Bank and Gaza Iraq of Iran Bhutan Jordan Pakistan Algeria Arab Nepal Libya Rep. of 21 15 11 19 Egypt Bangladesh Mexico Haiti 18 Myanmar Jamaica Cabo India Lao 14 Belize Verde Mauritania 2 P .D.R. 29 Honduras Mali Niger Guatemala Senegal Sudan Eritrea Rep. of 30 Thailand Vietnam 23 The Gambia Chad Yemen Marshall Islands El Salvador Nicaragua Burkina Cambodia Federated States Guinea-Bissau 7 Djibouti Philippines Guinea Faso Nigeria 12 25 of Micronesia 20 Costa Rica R.B. de Guyana Côte Central South Sri 6 Panama 9 Venezuela Suriname Sierra Leone d’Ivoire African Sudan Ethiopia Lanka Liberia Somalia Malaysia Palau Colombia Cameroon Rep. Ghana Maldives Togo 24 Uganda 17 26 Kiribati Rep. of Kenya Ecuador Benin Gabon Congo Rwanda 22 Equatorial Guinea Dem. Rep. Burundi Seychelles Solomon Kiribati São Tomé and Príncipe of Congo Indonesia Papua Islands 5 Tanzania Comoros New Peru 10 Guinea Tuvalu Brazil Timor-Leste Angola 16 Zambia Malawi Samoa 3 Bolivia Zimbabwe Madagascar 28 Vanuatu Fiji Namibia Mauritius Botswana Mozambique Paraguay Tonga Dominican Swaziland Poland Republic Bulgaria Romania Ukraine Antigua South Lesotho 1 and Africa Chile Uruguay St. Kitts Barbuda and Nevis Argentina Dominica Croatia 4 St. Lucia Bosnia and Serbia Herzegovina St. Vincent and 13 Kosovo the Grenadines Montenegro Grenada Albania Trinidad FYR R. B. de Venezuela & Tobago IBRD 40125R2 Macedonia AUGUST 2016 16 Indonesia: A National Community 20 Nicaragua: 458,557 people—more than 24 Rwanda: Support to the development 29 Vietnam: Between 2008 and 2014, Empowerment Program improved half were women—benefited from a of hillside horticulture and food crop more than 93,400 farmers were trained access to microcredit, benefiting more project to strengthen property rights production created 33,000 jobs between in sustainable farming techniques than 670,000 people with revolving through improved land titling and 2010 and 2015. and new technologies, which when loan funds. registry services from 2012 to 2015. 25 Sri Lanka: School-based teacher applied, helped the farmers to realize an average of 22 percent increase in 17 Kenya: As of 2015, 2.6 million individuals 21 Pakistan: 7.7 million individuals across development programs have benefited the value of sales. are benefiting from cash transfer support the country have received financing about 186,500 teachers since 2012. through the National Safety Net Program, from the Pakistan Poverty Alleviation 30 Republic of Yemen: From 2012 to 2015, 26 Tanzania: 8 million rural Tanzanians up from 1.7 million in 2013. Fund, with 61 percent of the loans going 101,042 people accessed improved gained access to clean and safe water by to women. primary health care services; 121,193 18 Mauritania: Government tax administration 2015, a 75 percent increase from 2007. people had access to improved water capacity was strengthened, increasing the 22 Papua New Guinea: 35 percent of 27 Uzbekistan: From 2012 to 2015, 3,500 sources; and 41,039 people had access tax revenue collected by 36 percent from young people who graduated from an households in Bukhara and 11,000 in to improved sanitation facilities. 201 1 to 2014. on-the-job training program since 2011 Samarkand were connected to public received an offer of a paid job. 19 Nepal: Over 400 micro-hydropower  sewer systems. plants were built between 2007 and 23 Philippines: By 2015, a total of 4.4 28 Vanuatu: 521 homes obtained access 2014, providing 150,000 rural households million poor households with children to grid-based electricity between with access to reliable and clean power. were enrolled in a conditional cash September 2014 and December 2015. transfer program that provides incentives for parents to invest in the health and education of their children. Annual Report 2016 Financial Statements incorporated by reference. The Management’s Discussion and Analysis and Audited Financial Statements of IBRD and IDA (“Financial Statements”) shall be deemed to be incorporated in, and to form part of, this Annual Report. The Financial Statements may be accessed at worldbank.org/financialresults. Complete IBRD and IDA financial, lending, and organizational information is available on the World Bank Annual Report 2016 website: worldbank.org /annualreport.  The World Bank Annual Report 2016 (eBook) in 8 languages  Global Reporting Initiative (GRI) Fiscal 2016 Index  Additional World Bank Fiscal 2016 Information: − Lending Data − New Operations Approved − Income by Region − IBRD and IDA Organizational Information  World Bank Fiscal 2016 Lending Presentation (PowerPoint) World Bank Annual Report 2016 Team Editorial and Web Production Coordinator Print Production Coordinator Daniel Nikolits Denise Bergeron Design and Production Coordinator Design, Typesetting, and Printing Susan Graham Designed by Naylor Design; typeset by BMWW; printed by Professional Graphics Printing Co. Advisory Editors Nancy Lammers, Janet Sasser, John Felton, Barbara Karni © 2016 International Bank for Reconstruction and Attribution—Please cite the work as follows: World Bank. Development / The World Bank 2016. World Bank Annual Report 2016. Washington, 1818 H Street NW, Washington, DC 20433 DC: World Bank. doi: 10.1596/978-1-4648-0852-4. Telephone: 202-473-1000; Internet: www.worldbank.org License: Creative Commons Attribution–NonCommercial– NoDerivatives 3.0 IGO (CC BY-NC-ND 3.0 IGO). Some rights reserved Noncommercial—You may not use this work for 1 2 3 4 19 18 17 16 commercial purposes. This work is a product of the staff of The World Bank. No Derivative Works—You may not alter, transform, or The boundaries, colors, denominations, and other build upon this work. information shown on any map in this work do not imply Third-party content—The World Bank does not any judgment on the part of The World Bank concerning necessarily own each component of the content the legal status of any territory or the endorsement or contained within the work. 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NoDerivatives 3.0 IGO license (CC All queries on rights and licenses should be addressed BY-NC-ND 3.0 IGO) http://creativecommons.org/licenses/ to the Publishing and Knowledge Division, The World by-nc-nd/3.0/igo. Under the Creative Commons– Bank, 1818 H Street NW, Washington, DC 20433, USA; NonCommercial–NoDerivatives license, you are free fax: 202-522-2625; e-mail: pubrights@worldbank.org. to copy, distribute, and transmit this work, for noncommercial purposes only, under the following ISBN: 978-1-4648-0852-4 conditions: eISBN: 978-1-4648-0860-9 doi: 10.1596/978-1-4648-0852-4 In recent years, World Bank operations have supported clients to  Reach 14.9 million people, and micro-, small, and medium enterprises with financial services  Provide 2.0 million hectares of land with irrigation services  Construct or rehabilitate 113,600 kilometers of roads  Generate 4,287 megawatts’ capacity of conventional energy and 2,461 megawatts’ capacity of renewable energy  Recruit or train 6.6 million teachers  Provide 377 million people with essential health, nutrition, and population services  Cover 32.7 million beneficiaries by social safety net programs  Provide 42.2 million people with access to an improved water source  Provide 16.6 million people with access to improved sanitation facilities  Reduce 588 million tons of CO2 equivalent emissions annually with the support of special climate instruments  Support 36 countries in institutionalizing disaster risk reduction as a national priority The World Bank comprises the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). It provides financing, knowledge, and convening services that help its clients address many of their most important development challenges. But what makes the World Bank unique is its global reach to promote growth, inclusiveness, and sustainability. The selected global results represented above were reported by World Bank clients with the support of Bank- financed operations between 2013 and 2015. worldbank.org/annualreport SKU 210852