Korea-World Bank Group Partnership Facility ANNUAL REPORT 2016 Korea-World Bank Group Partnership Facility ANNUAL REPORT 2016 ABBREVIATIONS AA Administrative Agreement KODIT Korea Credit Guarantee Fund ACRC Anti-Corruption and Human KOTI Korea Transport Institute Rights Commission of Korea KOTRA Korea Trade Promotion Corporation BOK Bank of Korea KRIHS Korean Research Institute for Human Settlement CID KDI Center for International Development KRIVET Korea Research Institute for Vocational CCSAs Cross Cutting Solution Areas Education and Training CMU Country Management Unit KSPO Korean Supreme Prosecutor Office CRVS Civil Registration and Vital Statistics KT Korea Telecom EUROPPOL European Police Office K-Water Korea Water Resources Corporation FIF Financial Intermediary Fund LX Korea Land and Geospatial Informatix FY Fiscal Year Corporation GGHFT Global Green Housing Finance Toolkit LMIS Labor market information system GIFTS Global Institute for Transferring Skills LLI Leadership Learning and Innovation HIRA Health Insurance Review and Assessment Service MIGA Multilateral Investment Guarantee Agency HRDKorea Human Resources Development Service of Korea MOF Ministry of Finance IBK Industrial Bank of Korea MOU Memorandum of Understanding IBRD International Bank for Reconstruction NCD Non-communicable Diseases and Development NHIS National Health Insurance Service ICT Information and Communication Technologies NIA National Information Society Agency IDA International Development Association NILE National Institute for Lifelong Learning IFC International Finance Cooperation NIPA National Information Technology Industry INTERPOL International Criminal Police Organization Promotion Agency KCC Korea Communications Commission SKT SK Telekom KDI Korea Development Institute TA Technical Assistance KDIS Korean Development Institute School TDMS Transport Data Management Systems KEDI Korea Education Development Institute TTL Task Team Leader KERIS Korea Education & Research Information Service TVET Technical and Vocational Education and Training KIP Korean Institute of Criminology UHC Universal Health Care KISA Korean Internet and Security Agency UNCTAD United Nations Conference on Trade KISDI Korea Information Society Development Institute and Development KIST Korea Institute of Science and Technology WBG World Bank Group KLMS Korea Land Information System WHO World Health Organization Annual Report 2016 | 1 TABLE OF CONTENTS Executive Summary 5 1. Overview 7 Introduction 7 Korea and the WBG’s Successful and Multifaceted Partnership 8 Administration and Governance 10 2. Program Overview 13 Results Framework and Monitoring 27 3. Feature Stories 29 Flood Early Warning System for the Kenya Water Security and Climate Resilience Project 29 Municipal Capacity Building Pilot Initiative for Nepal and Bangladesh 30 Tiger hunts with Lions: Developing Agricultural Market Information System and Decision Simulation System to empower small holder farmers and boost productivity 30 Promoting Skills Development and Job Creation in East Asia 32 Development of ICT-Based Creative Economy and ICT Entrepreneurship 33 Combating Cybercrime: Tools and Capacity Building for Emerging Economies 34 Government cloud infrastructure assessments and action plans 35 Youth Employment in animation industry in Jamaica 36 Developing Partnership between Korea and Africa for Human Resource and Skills Development in Applied Sciences, Engineering and Technology (PASET) 37 4. Korea and the World Bank Group: a Partnership Committed to Sharing Development Experience 39 5. KWPF: a Path to Continued Success 43 6. KWPF Survey: Client Feedback 45 LIST OF ANNEXES Annex 1: KWPF Budget 50 Annex 2: Key Achievements under Window 1 Trust Fund Programs 51 Annex 3: KWPF in Numbers 58 Annex 4: FY16 Window 3 Priority Areas 62 Annex 5: Results Framework 64 2 | Annual Report 2016 MESSAGE FROM THE DIRECTOR OF THE WORLD BANK’S TRUST FUND AND PARTNERSHIPS UNIT I am delighted to present to Over the past three years, strong collaboration and ongoing the Government of Korea and dialogue between the Government of Korea, represented the Korean public the FY16 by the Ministry of Strategy and Finance, and the WBG Progress Report for the Korea- in its capacity as Secretariat has allowed the Facility to WBG Partnership Facility. Since move swiftly and seamlessly from establishment and early the Facility was established implementation, to being fully operational across all three in 2013, it has become one of Windows. Activities under Windows 1 and 3 have already the key instruments to build produced some tangible outputs and meaningful results while relationships and exchange leveraging Korean expertise and responding to the demand of development knowledge between our client countries, while the slowest of the three Windows the Government of Korea, WBG, to gain momentum, Window 2, made significant progress in and its client countries. FY16 with cofinancing for three new projects approved. Korea has achieved remarkable progress in economic and social development over the last twenty years, and learned invaluable The WBG deeply appreciates and acknowledges the lessons through its journey from a low-income recipient of importance of the financial and technical contributions development aid to one of the most dynamic economies in made by the Government of Korea through the Korea-WBG the world. Furthermore, Korea has become a key member of Partnership Facility. This funding is critical to helping the WBG the international donor community and an important global to advance its renewed development agenda and its goals provider of financial and technical development assistance. In of ending extreme poverty and boosting shared prosperity, this context, the Korea-WBG Partnership Facility is supporting in addition to allowing the WBG to access a mechanism Korea in its goal of mainstreaming its development aid, for leveraging and complementing its own resources, and while also facilitating the sharing of its unique development to better respond to client demand. In the years to come, experience, expertise and know-how with low and lower we hope that the Facility will continue to deepen the WBG middle income countries to help them achieve sustainable and partnership with Korea and allow us to continue learning from inclusive development. Korea’s extraordinarily successful development experience as we implement the important projects supported by Korea’s financial contribution. Jaehyang So Director, Department of Partnerships and Trust Funds Development Finance The World Bank  Annual Report 2016 | 3 MESSAGE FROM THE MINISTRY OF STRATEGY AND FINANCE OF KOREA On behalf of the Korean Over the past three years, the Korea-WBG Partnership Facility government and the Korean provided US$ 90 million and operated various projects in people I am pleased to present which Korea has a competitive edge. Through projects such as the second Progress Report for skills development, ICT in agriculture and industry, universal the Korea-WBG Partnership health coverage, land management and projects using new Facility. As one of Korea’s key technologies including big data, smart farm and Intelligent instruments for financial support Transport System (ITS), the Facility is successfully sharing the Facility has strengthened Korea’s strengths and expertise with client countries. the collaboration of the Korea- WBG partnership and since To help achieve the WBG’s twin goals of ending extreme poverty launching in 2013 has successfully and boosting shared prosperity, the Korean government is implemented joint projects. committed to continuing its financial support to respond to client demand. As part of this effort, Korea has committed a As one of the key development aid donors, Korea is providing further US$ 90 million to the Facility for the period FY17 to various forms of financial support to client countries to FY19. We expect that Korea can have more opportunities to achieve the Sustainable Development Goals (SDGs), a new share its knowledge and technical know-how with its client development agenda for the post-2015 era. Moreover, Korea countries. is increasing its contributions to WBG trust funds to address unresolved development challenges faced by client countries Yoon Jin Kang Director, and to respond to emerging demands in the world. Director, International Financial Cooperation Division Ministry of Strategy and Finance 4 | Annual Report 2016 Annual Report 2016 | 5 EXECUTIVE SUMMARY The Korea-World Bank Group Partnership Facility (KWPF or the At the end of its third year, the Facility is funding activities “Facility”) is a partnership between the Government of Korea in various stages of implementation under the three windows and the World Bank Group (WBG) established in May 2013 that are demonstrating some promising early results. Under that seeks to enhance Korea-WBG collaboration and provide Window 1, the Facility currently funds well-established global assistance to developing member countries of the World Bank programs that are tackling important initiatives to improve Group in achieving inclusive and sustainable economic growth. governance, data collection and research supporting poverty reduction and sustainable development, financial inclusion, The Facility is managed with a significant emphasis on knowledge sharing, and public administration that are results, and seeks to support WBG projects that are delivering tangible and impressive outcomes. For example, the designed to maximize development impact. In doing so, the Better Work Program in Vietnam under the IFC Korea Comprehensive Facility emphasizes strong alignment with the WBG’s lending Trust Fund has resulted in improved working conditions operations and strategic policy dialogue, as well as on sharing for 304,430 workers, including 245,148 women, through Korea’s development experiences with developing countries. The Facility is designed to provide effective trust fund management through an efficient, flexible and performance- oriented management structure, and comprises three pillars of collaboration: • Window 1 – Financing for Global and Regional Programs, which provides funding for WBG managed global programs in support of a range of global development initiatives; • Window 2 – Cofinancing of Country Investments, which provides funding for International Development Association (IDA) and International Bank for Reconstruction and Development (IBRD) lending projects that are closely aligned with Korea’s policy of international economic cooperation as well as the WBG’s relevant country and thematic strategies; and • Window 3 – Generation and Transfer of Development Knowledge, which supports WBG technical assistance, capacity building and knowledge exchange activities undertaken in close collaboration with Korean organizations with the aim of leveraging Korea’s economic development experience and expertise to develop cross-regional learning, research, and knowledge creation and exchange. Over the three years ending June 30, 2016, the Korean government has contributed US$ 90 million to the Facility, of which US$ 78.4 million has been programmed. The Facility currently supports eight global programs under Window 1, five lending projects under Window 2, and thirty-nine activities under Window 3. The remaining US$11.6 million will be programmed in FY17. 6 | Annual Report 2016 improvements in areas such as child labor, occupational safety In September 2016, the KWPF Secretariat invited all task and health, and payment of wages. For Window 2, the fourth teams of KWPF-funded activities to participate in a survey, call for proposals resulted in US$5.5 million in co-financing which included questions on what the Facility does best and what approved for three projects, compared to a total of US$4.3 improvements could be made. Task teams: (i) recognized KWPF million committed in the previous three call for proposals. as a “high innovative, far-reaching” vehicle through which many The five projects under Window 2—which are currently in developing countries can leverage and benefit from Korea’s the early stages of implementation—cover diverse sectors development know-how, (ii) noted the close collaboration with (water, trade and competitiveness, social protection, land, and Korean entities and the sharing of the country’s development agriculture) and regions (Africa, South Asia, and Europe and experience as extremely beneficial, and (iii) appreciated Central Asia). These projects are expected to yield tangible the level of expertise exhibited by Korean partners was outcomes such as an improved flood early warning system in recognized as world class. Some recommendations that Kenya, promotion of resource efficient and green practices in emerged included: introduction of rolling applications with Mauritania through the establishment of a fisheries cluster potentially streamlined procedures for and easier access to and free zone, and enhanced capacity for land administration micro-grants, greater flexibility to access additional financing, in Uzbekistan, social protection administration in Bangladesh, and the establishment of a knowledge sharing platform to and monitoring and evaluation of crop production in Uganda share good practices, lessons learned, and networks among and Kenya by leveraging ICT. Window 3 is funding innovative grant recipients. This report provides an overview of: i) the technical assistance, capacity building, and knowledge structure of the Facility including a summary of all programs, activities that task teams can implement relatively quickly projects and activities supported by the Facility as June 30, and are contributing effectively to larger development 2016; ii) progress achieved by KWPF programs in their second goals. For example, the development of a Cloud Readiness or third year of implementation; iii) how Korean expertise and Assessment Toolkit which was piloted in three countries will experience is contributing to the results of the Facility; iv) help assess countries’ readiness in launching cloud computing administrative considerations that are critical to the success in support of e-government initiatives or the organization of of the Facility; and v) results of a survey undertaken by the a Global Forum on Strengthening Civil Registration and Vital Secretariat with aim of gaining feedback from WBG task Statistics and National Identity Management Systems—with team on the strengths and areas for improvement based on the participation of government officials from 10 countries— their experience with the Facility. to support global scale-up in low and middle income countries. As Facility funded activities approved under the third and fourth calls for proposals are in their early stages, the KWPF Secretariat expects additional meaningful, aggregated results in the next 18 months. Annual Report 2016 | 7 1. OVERVIEW INTRODUCTION As of June 30, 2016, US$78.4 million has been programmed across the three windows (refer to Table 1 below), and the In October 2012, a Memorandum of Understanding (MOU) remaining US$11.6 million will be programmed in FY17 under a was signed between Korea’s (former) Minister for Strategy fifth call for proposals under Windows 2 and 3. and Finance, Jaewan Bahk, and the President of the WBG, Jim Yong Kim, to establish a facility that would complement Table 1: Programming Overview of each Window under the series of existing partnerships which were designed to KWPF enhance financial sector management, promote investment Window 1 Window 2 Window 3 in green infrastructure and renewable energy, share know-how “Pass-through” for Cofinancing of WBG Generation and in information communications technology and knowledge Global and Regional Projects Transfer of sharing, and assist fragile and conflict-affected states. WBG Programs Development Knowledge As set out in the MOU, the Korea-World Bank Group US$ 43.8 million US$ 9.8 million US$ 25.0 million Partnership Facility (KWPF) was established in May 2013, with 8 programs 5 projects 39 activities the overarching objectives of assisting developing member countries of the WBG in achieving inclusive and sustainable economic growth, enhancing Korea-WBG collaboration, The Facility is managed with a significant emphasis on and seeking to provide flexible, efficient and effective fund results, and seeks to support WBG projects that are management. To achieve these objectives, the Korean designed to maximize development impact. In doing so, the government provided US$90 million for a three year period Facility emphasizes strong alignment with the WBG’s lending (July 1, 2013 – June 30, 2016). operations and strategic policy dialogue, as well as on sharing Korea’s development experiences with developing countries. The KWPF was structured to comprise three pillars of collaboration: Box 1: Three Overarching Themes that • Financing for Global and Regional WBG Programs underpin KWPF Project Selection. (Window 1), a “pass through” window through which funding for WBG managed global programs across a range • Development Impact. KWPF aims to support of global development initiatives flows; projects which have a longer-term perspective and • Cofinancing of WBG Country Investments (Window inform lending operations or WBG policy dialogue. 2), which provides funding for WBG lending projects that • Partnership. Beyond the provision of financial are closely aligned with Korea’s policy of international support, KWPF aims to catalyze knowledge economic cooperation as well as the WBG’s relevant sharing between the World Bank, Korea and country and thematic strategies; and developing countries. • Generation and Transfer of Development Knowledge • • Cost Effectiveness Meaningful and tangible results (Window 3), which supports WBG technical assistance, are essential elements behind cost efficiency. capacity building and knowledge exchange activities KWPF aims to assist recipient countries leverage undertaken in close collaboration with Korean organizations additional financial resources from within the WBG, that seek to leverage Korea’s development experience to other existing Korean trust funds, and other donors. develop cross-regional learning, research, and knowledge exchange. 8 | Annual Report 2016 Box 2: Korea and the WBG’s Successful and Multifaceted Partnership The development of the KWPF has been an integral part Within FIFs, IBRD/IDA and IFC Trust Funds, the of the ongoing partnership between the government of proportion of contributions made by Korea relative to all Korea and the WBG during which Korea has solidified other development partners are shown in Table 2 below. a successful transformation from aid recipient to significant donor. Korea’s remarkable success in combining rapid economic growth with significant Table 2: Korea’s Share of Contributions Paid-in during improvements in human development culminated FY12 – FY16 (in USD millions) in Korea becoming a member of the Development Fund Korea All Korea’s Share Assistance Committee (DAC) of the OECD in January Classification Development of Total 2010, marking a significant step in recognition of Korea Partners Contributions as a major development donor. Korea is now actively FIFs 136 39,760 0.34% sharing its extensive experience of using development IBRD/IDA Trust 137 18,086 0.76% co-operation as a catalyst to promote long-term Funds sustainable growth in other countries. IFC Trust Funds 6 3,420 0.18% Total 279 61,266 0.46% Today, Korea is a key development partner of the WBG and an important contributor to the International Development Association (IDA) – the fund established to support the world’s poorest countries – as well as IBRD/ Korea-WBG’s successful and multifaceted relationship IDA trust funds. Over the five years prior to June 30, has resulted in a series of diverse and innovative 2016, Korea’s contribution to the WBG totaled US$ 964 partnerships and joint projects designed to enhance million (refer to Chart 1), and Korea was ranked 19th financial sector management, promote investment amongst development partners in terms of contributions in green infrastructure and renewable energy, share to IBRD/IDA trust funds. know-how in information communications technology, support and accelerate knowledge sharing, and assist Chart 1: Korea’s Total Contributions to the WBG fragile and conflict-affected states. The establishment (July 1, 2011 – June 30, 2016) of KWPF was a logical next step in ensuring a more US Millions comprehensive and wide-ranging support to developing countries working with the WBG, while mainstreaming Korea’s development assistance. In particular, the FIF US$142 IFC US$6 Facility offers the opportunity for Korea to showcase IBRD/IDA US$157 IDA US$610 their development experience and share their expertise with developing country partners. 1% 16% In addition to the KWPF, key trust funds supported by Korea include the Korea Green Growth Trust Fund, and the Korea-LLI Global Program on Knowledge Sharing. Key FIFs include the Global Agriculture and Food Security Program, the Green Climate Fund, and the Global Fund to Fight AIDS, Tuberculosis and Malaria. 17% 67% Annual Report 2016 | 9 Box 2: Korea and the WBG’s Successful and Multifaceted Partnership (continued) Table 3: Korea’s top three Contributions to IBRD/IDA TFs, FIFs and IFC TFs (FY12-16) Trust Fund Name Total Contribution (US$ million) IBRD/IDA Korea Green Growth Trust Fund 39 Korea-World Bank Partnership Facility1 22 Korea World Bank Institute (WBI) Global Program on Knowledge Sharing 15 FIF Global Agriculture And Food Security Program 81 Green Climate Fund 26 The Global Fund To Fight Aids, Tuberculosis, And Malaria 16 IFC Korea - IFC Comprehensive Trust Fund 5 The Global Small and Medium-Sized Enterprise (SME) Finance Initiative 1 Facility for Investment Climate Advisory Services (FIAS) 1 Korea is widely perceived by developing countries as a shared, and sets Korea apart from other donors. In source of knowledge, expertise and ideas on development, addition, the Facility supports Korea’s ODA objectives drawn from real experience. The Facility therefore offers of increasing multilateral aid, sharing its development a different modality of development assistance which experience and making use of country partner systems. aims to transform how knowledge is generated and 10 | Annual Report 2016 ADMINISTRATION AND GOVERNANCE The funding envelope for each window is set by the MOSF on an annual basis. The WBG acts as Trustee for the overall Facility, with all funds administered by the Trust Funds and Partnerships (DFPTF) DFPTF acts as the Secretariat of the Facility, facilitating team within the WBG’s Development Finance Vice Presidency annual meetings and coordinating with the WBG regional (DFi).In order to facilitate the most efficient management and sectoral units using established business processes. of funds, the Facility was established with two Trustee trust When reviewing proposals for Window 2 and 3 activities, the funds under one Administrative Agreement: KWPF Secretariat is supported by a Technical Committee to assess the technical quality of the proposal. The Technical 1. “Pass-through” Trustee trust fund (Window 1) Committee comprises of senior sector/thematic experts from the relevant WBG global practices (GPs), and has the role of The first Trustee trust fund (TF072055) facilitates fund flows assessing all proposals received from their respective GPs to the global and regional programs supported under Window with respect to the technical quality of the proposal, including 1, pertaining to the following governance structure: the design, readiness, coherence of results framework, alignment with World Bank priorities etc. Each member of • Window 1: MOSF advises DFPTF the details of which WBG the Technical Committee submits a ranking of all proposals programs that it will support once agreement with the received under their GP to the KWPF Secretariat along with respective WBG units has been reached. An Administration a written assessment of each proposals. This ranking is a key Agreement is then signed between the relevant WBG unit input into the determination of the long list submitted to the and the MOSF, and DFPTF requests a transfer of funds to Operations Committee. Upon review and discussion of the the relevant selected programs. Each Window 1 program long list, the Operations Committee will determine a short list has an individual monitoring and reporting framework as for submission to the MOSF for consideration and approval. set out in the relevant Administration Agreement, which is provided directly from the WBG unit to the MOSF. The Secretariat prepares semi-annual reports on implementation progress and completion of activities, and is responsible for the 2. Trustee trust fund (Windows 2 and 3) day-to-day management and administration of the overall portfolio of activities. This includes briefing senior management The second Trustee trust fund (TF072053) is the umbrella on developments related to the Facility and communicating structure which houses all Window 2 and 3 projects and with the donor on priorities and directions of the Facility, as activities. The governance structures for Windows 2 and 3 well as following up with the respective task teams on progress are as follows: achieved. The KWPF budget and disbursement rates are updated and monitored on a monthly basis, at the Window and • Window 2: DFPTF serves as administrator, periodically individual project levels. This allows the Secretariat to monitor: calling for grant proposals from WBG task teams i) the flow of funds to each activity, thereby ensuring funds for co-financing of investment projects. New projects become available in an efficient manner; ii) activities that seeking financing would have undergone rigorous vetting are approaching completion; and iii) activities that are taking and approval processes within the WBG, while ongoing longer than expected to get started; and iv) activities that are operations would have been approved by its Board of disbursing more slowly than anticipated. The Secretariat will Executive Directors. DFPTF submits proposals deemed work closely with the task teams to ascertain the issues, and eligible for funding to MOSF for review and approval. provide any assistance from an administrative perspective • Window 3: DFPTF periodically calls for grant proposals to help the activity get back on target. The reason for slow from WBG global practices that fall under clearly defined disbursement is typically a result of changed, or changing socio- priority areas, which have been previously agreed between economic or political landscapes. the donor and the WBG. DFPTF submits concept notes deemed eligible for funding to the MOSF for endorsement. A summary of the review procedures undertaken by the Upon endorsement by the donor, task teams are requested KWPF Secretariat at different stages of the activity lifecycle to submit a full proposal, which is reviewed by DFPTF is shown Table 4 below. before being submitted to the MOSF for final approval. 1. Note, this only includes allocations through Windows 2 and 3. Allocations to global programs through Window 1 are shown as standalone contributions to the respective global programs. Annual Report 2016 | 11 Table 4: Post-Approval Management and Monitoring of Activities Stage of Implementation Reason for Review Action Taken Upon final approval by the MOSF To ensure: Follow up with relevant teams if funding is • Funds become available in an efficient not made available 3 days after the Grant manner once the activity is approved. Funding Request (GFR) is approved by the • Project teams are adequately equipped Secretariat. to start implementation as efficiently as possible. Monthly, throughout the life of all activities To ensure: • Disbursements and progress are in line with expectations. Semi-annually, throughout the life of all To ensure funds are being disbursed as Activities taking longer than expected to activities expected, that progress is being made in get started, or disbursing more slowly than line with expectations, and to provide a expected: comprehensive report to the MOSF. • Meet with task teams to understand the issue and determine steps for resolution; • Communicate the issue/reason for delay to MOSF in the semi-annual/annual report; • If changes to the activity are required, discuss with MOSF immediately to determine the course of action. Activities approaching completion To get an update on progress relative to objectives, and to start working on all required completion reporting and/or determine the next stage of the activity. 12 | Annual Report 2016 Annual Report 2016 | 13 2. PROGRAM OVERVIEW AND PROGRESS ACHIEVED TO DATE FINANCING FOR GLOBAL AND REGIONAL Korea Comprehensive Trust Fund has resulted in improved PROGRAMS (WINDOW 1) working conditions for 304,430 workers, including 245,148 women, through improvements in areas such as child labor, Window 1 was set up with the objective of providing funding occupational safety and health, and payment of wages. Other to global and regional trust fund programs, administered by trust fund programs are working on important regional issues, the WBG, in support of various development activities which such as the development of integrity and anti-corruption have been collaboratively agreed between Korea and the systems in Asia, and the formation of sustainable peer World Bank. This Window also aims to facilitate a streamlined networks for public finance practitioners from East Asian and management and administration of Korea’s Trust Fund Pacific countries, to facilitate cross-country learning. engagement with the WBG. Such engagement includes the provision of financial support for the establishment of the While activities funded under Window 1 follow individual WBG office in Korea in 2014. The Facility’s contributions to reporting requirements as specified in their respective the selected programs, which are listed in Table 5 below, are Administration Agreements with Korea, a summary of key governed by the respective terms of each program. achievements in FY16 is included in Annex 2 to provide a holistic overview of activities funded under the KWPF. The majority of these programs are well-established programs supporting highly visible deliverables. Underlying projects In November 2015, US$120,000 was transferred to the Donor have also delivered tangible and impressive outcomes – for Funded Staffing Program’s Korea account from the KWPF at example, the Better Work Program in Vietnam, under the IFC the request of MOSF. Table 5: Programs supported with funding through Window 1 Program Commitment Amount Administration Agreement Period covered Signing Date Public Expenditure Management Network in Asia (PEMNA) MDTF 3,000,000 May 2013 FY14-16 WBI Global Program on Knowledge Sharing SDTF (LLI) 18,000,0002 June 2013 FY14-16 Poverty Dynamics and Public Service Delivery MDTF (Knowledge 1,500,000 December 2013 FY14-16 for Change Program II – KCP II) Governance Partnership Facility Korea SDTF 3,000,000 December 2013 FY14-16 IFC Comprehensive Trust Fund 3,000,000 February 2014 FY14-16 WBG Korea Office 6,705,000 July 2014 FY14 onwards MDTF for Statistical Capacity Building III 3,000,000 June 2015 FY15-17 Global Facility on Growth for Development 9,000,000 September 2015 FY16-18 Total Commitments 47,205,000 2. This excludes the removal of USD 3.0 million from this contract in FY17. The revised commitment amount is USD 15,000,000. 14 | Annual Report 2016 CO-FINANCING OF COUNTRY The task teams of each grant approved in June 2016 have INVESTMENTS (WINDOW 2) met with the KWPF Secretariat and Korean Executive Director’s office within the Bank, are currently completing Window 2 was established with the objective of providing internal processes, and will begin work in early FY17. cofinancing to complement the WBG’s operational work and facilitate collaborative coordination of development assistance, The sectoral and regional breakdown of Window 2 is shown in including the harmonization of financial flows, associated Charts 3 and 4 below. As the main objective of the Window operational procedures, and reporting requirements. Window 2 is to create a stronger linkage with Bank’s operations 2 can finance: i) a new component(s) of an on-going and ii) or there are no regional or sectoral restrictions in Window 2, existing project. the diversification across region and sector is anticipated to increase as more projects are approved. With only one project approved in each of the first two years, the Secretariat in collaboration with MOSF developed a set of operational guidelines which clearly defined the eligibility criteria and application process, and established more efficient financing procedures for Window 2. These guidelines allowed the Secretariat to more effectively guide and assist task teams in the preparation of project proposals, and resulted in a significant improvement in the number of proposals received and the level of alignment with the objectives of Window 2 under the fourth call for proposals in FY16. Under this fourth call, US$5.5 million in co-financing was approved for three projects, bringing the total number of approved projects to five for a total of US$9.8 million. Chart 2 below shows the trend in Window 2 applications and approvals in each of the four calls for proposals completed. Chart 2: Trends in Applications and Approvals under Window 2 6 50 Concept Notes Approved (RHS) 5 40 Concept Notes 4 Received (RHS) Number of CNs 30 US$ millions 3 Tot l Gr nt Amount (LHS) 20 2 10 1 0 0 First C ll Second C ll Third C ll for Fourth C ll for for Propos ls for Propos ls Propos ls Propos ls Annual Report 2016 | 15 Chart 3: Window 2 Program by Sector3 5 US$4.8 2 4 1 US$ millions 3 US$2.9 2 1 US$1.8 1 US$0.3 1 0 A riculture Soci l Soci l, Priv te Number of Protection Urb n, Rur l Sector (IFC) Projects Development Chart 4: Window 2 Program by Region 6 5 4 3 US$ millions 3 2 1 US$5.1 US$2.9 1 US$1.8 1 0 Afric South Asi Europe nd Number of Centr l Asi Projects A summary of each project approved under Window 2 is shown in Table 6 below, and key achievements of the Flood Early Warning System for the Kenya Water Security and Climate Resilience Project is highlighted in Section 2. 3. As of June 30, 2016 4. As of June 30, 2016 16 | Annual Report 2016 Table 6: Cofinancing Provided Through Window 2 Key Objectives Grant Amount Amount Disbursed & (US$) Committed5 Grant 1: Flood Early Warning System for the Kenya Water Security and Climate Resilience Project (KWSCRP-1) Grant Approval date: April 2015 4.0 million BETF: 0.08 million Country: Kenya RETF: 3.5 million Burn Rate: 17.0% Sector: Water BETF: 0.5 million Objective: To increase availability and productivity of irrigation water for project beneficiaries, and enhance the institutional framework and strengthen capacity for water security and climate resilience (including improved water services, flood protection, and analytical capacity to understand and manage hydrological variability) in certain areas of the country. Grant 2: Green Nouadhibou Grant Approval date: August 2015 BETF: 0.3 million BETF: 0.3 million Country: Mauritania Burn Rate: 99.6% Sector: IFC (Trade and Competitiveness) Objective: To assist the government of Mauritania develop a fisheries cluster and Free Zone that promotes resource efficient and green practices. Grant 3: Innovation Villages for safety net system in Bangladesh Grant Approval date: June 2016 RETF: 2.9 million 0.0 Country: Bangladesh Burn Rate:0% Sector: Social Protection Objective: To enhance the development impact of the safety net system in Bangladesh, leveraging best practices to improve transparency in program implementation and beneficiary targeting in selected localities. The activity will provide key lessons in improving targeting and transparency, which can be scaled up across the existing Safety Net Systems for the Poorest (SNSP) project. Grant 4: Modern Cadastre Project Grant Approval date: June 2016 RETF: 1.8 million 0.0 Country: Uzbekistan Burn Rate:0% Sector: Social, Urban and Rural Development (Land) Objective: To strengthen the capacity of theState Committee for Land Resources, Geodesy, Cartography and State Cadastreand the Project Implementation Unit for the Modernization of Real Property Registration and Cadastre projectin managing the development and maintenance of digital systems for the management of geo-spatial information and land administration, through efficient use of digitalization technologies for collecting, processing and sharing geo-spatial data. Grant 5: ICT for Agriculture Approval date:June 2016 RETF: 0.75 million 0.0 Country: Uganda and Kenya Burn Rate:0% Sector: Agriculture Objective: To support technical and managerial collaboration between the WBG and Korea in the development and implementation of the Agriculture Cluster Development Project (ACDP) and the related Korean co-financing instrument in Uganda (additional US$50-60 million). This grant aims to develop new effective and efficient methods using satellite imagery for monitoring and evaluation of crop production in Uganda and Kenya. 5. As of June 30, 2016 Annual Report 2016 | 17 WINDOW 3: GENERATION AND TRANSFER thirty nine for a funding amount of US$ 25.0 million. The level OF DEVELOPMENT KNOWLEDGE of interest in the Facility has increased significantly with each call for proposals returning more than the one before. Chart 5 Window 3 was established to fund the generation and below shows the trend in applications and approvals in each dissemination of development knowledge that leverages call for proposals. Korea’ experience as well as the WBG’s convening power and development expertise. The sharing of expertise would take place The sectoral and regional breakdown of the work program at the country, regional and global level, both under recipient- supported through Window 3 is well diversified by both region executed and WBG-executed activities. Activities include, but are and sector, as shown in Charts 6 and 7 below. The clear not limited to studies, technical assistance, project preparation, definition of the four priority areas under the fourth call for reports and other research and analytical activities; and training, proposals (agriculture, education, health and information and peer-learning and capacity building initiatives. communication technologies (ICT)) by the MOSF resulted in a greater concentration under those sectors – a trend which Grants funded under Window 3 have a number of objectives, is expected to continue so long as the priority sectors remain such as supporting and informing national policy dialogue, the same. upstream policy discussions and aiming to influence country level, regional or WBG policy instruments. In addition, While the activities approved in July 2016 are in the early numerous grants feed directly into, or support, current and/or stages of implementation, meaningful progress is being seen future WBG lending operations. in activities approved in FY14 and FY15. An overview of progress achieved in all grants approved in FY14 and FY15 In FY16, twelve proposals were approved by the donor under under Window 3 is summarized in Table 7. Window 3 for a funding amount of US$ 10.6 million, bringing the total number of approved activities under Window 3 to Chart 5: Trends in Applications and Approvals under Window 3 12 120 Propos ls Approved 10 Propos ls Received 100 Tot l Gr nt Amount (LHS) 8 80 Number of CNs US$ millions 6 60 4 40 2 20 0 0 First C ll for Propos ls Second C ll for Propos ls Third C ll for Propos ls Fourth C ll for Propos ls 18 | Annual Report 2016 Chart 6: Window 3 Program by Sector6 8 US$8.0 14 7 3 6 US$5.7 7 5 US$5.3 US$ millions 8 4 2 3 US$2.9 2 2 2 1 US$1.2 US$0.4 US$0.3 US$1.1 0 1 Inform tion A riculture Educ tion He lth, Knowled e, Public IFC: Priv te Ener Number of nd Nutrition Le rnin Administr tion Sector nd Projects Communic tion nd Popul tion nd Development Extr ctives Technolo (ICT) Innov tion Chart 7: Window 3 Program by Region7 10 9 US$9.7 7 8 US$5.0 15 7 6 7 US$ millions 5 US$5.6 3 4 3 3 2 3 1 US$1.7 US$1.4 US$1.1 US$0.3 1 0 Afric Glob l E st Asi , South Europe L tin Middle Number of P cific Asi nd Americ E st nd Projects Centr l nd the North Asi C rribe n Afric 6. As of June 30, 2016 7. As of June 30, 2016 Annual Report 2016 | 19 Table 7: Progress Achieved by Grant under Window 3 Grant Amount Amount Disbursed & Key Objectives (US$) Committed8 Progress Update Grant 1: Promoting effective use of ICTs in education and job creation through skills development in technical and vocational education Country: Global 1,000,000 670,654 This grant has contributed to two flagship annual Sector: Education Burn Rate: knowledge sharing events, in collaboration with key Korean Objective: To offer analytical frameworks to guide 67.1% partners, KERIS9 and KRIVET10. The global symposium policy dialogue and inspire policy reforms, and on ICT use in education, and the policymakers’ workshop deepen the knowledge of key policymakers on alongside the Global Human Resource (GHR) Forum took issues related to ICT/education and job creation place in Gyeongju and Seoul respectively in November and skills development through the development of 2014, with successful follow-up events taking place in related new knowledge products and tools and the November 2015 in Incheon and Seoul. sharing of these tools and products. Grant 2: Mobile Innovation Knowledge Network Country: Lebanon 300,000 276,153 The grant has been applied to conduct an innovation Sector: Information and Communication Burn Rate: ecosystem assessment in Lebanon to update the analysis Technology (ICT) 92.1% of the strengths and weaknesses of the rapidly changing Objective: To expand technology and open ecosystem and best align the World Bank’s technical innovation knowledge networks through the assistance and knowledge sharing efforts. The grant end creation and establishment of a Mobile Innovation date has been extended to allow for the full completion knowledge Network (MIN) within the MiHub of the mapping and analysis as well as its dissemination structure that serves as a knowledge provider and for Lebanese and Korean stakeholders. Further detail on convener of international and local experts and the survey-based ecosystem mapping can be found here11 stakeholders in Lebanon’s innovation ecosystem. (http://bit.ly/1pKfycu). Note that due to the political situation in Lebanon surrounding the Syrian refugee crisis, the project has been restructured to a technical assistance activity for the time being. The scope and objectives of the work remain unchanged, and the change discussed with MOSF. Grant 3: Partnership in Knowledge – Learning from Korean development experience for a sustainable growth of Vietnam Country: Vietnam 600,000 317,745 The following key activities took place in FY16: i) a Sector: Knowledge, Learning and Innovation Burn Rate: visit to Korea (September 2015) to work with the Objective: To enable a sustainable access and 53.0% Korea Development Institute School (KDIS) to scale up systematic sharing of development knowledge partnership and collaboration in the areas of knowledge for Vietnamese stakeholders and Korean Think sharing; ii) three education workshops in Ho Chi Minh Tanks and also to build capacity for Vietnamese City and Hanoi (October 2015) to exchange experience knowledge institutes in designing knowledge and development solutions with international education sharing programs using blended and modern ICT experts; and iii) a knowledge exchange program (June methodologies and instruments. 2016)in Seoul to facilitate knowledge exchange between Korea and Vietnam in enhancing and professionalization of Vietnamese officials to manage ODA project effectively and efficiently. Grant 4: Developing Partnership between Korea and Africa for Human Resource and Skills Development in Applied Sciences, Engineering and Technology (ASET) Country: Eastern Africa (Regional) 500,000 496,605 Stock taking of Korea’s support to Africa in Technical Sector: Education Burn Rate: Vocational and Higher Education has been completed. In Objective: To establish an effective, operational 99.3% addition, a regional conference on “Africa’s Transformation framework for long-term partnership between – Leveraging Partnership with Korea” was held in Addis Korea and sub-Saharan Africa to develop skills Ababa (July 2015), attended by 130+ participants from in Applied Sciences, Engineering and Technology Cameroon, the Democratic Republic of Congo, Ethiopia, (ASET) for specific priority industry sectors. Kenya, Senegal, Rwanda, Tanzania and Uganda. 8. As of June 30, 2016 9. Korea Education and Research Information Service (KERIS) 10. Korea Research Institute for Vocational Education and Training (KRIVET) 11. The web address is as follows: http://bit.ly/1pKfycu 20 | Annual Report 2016 Grant Amount Amount Disbursed & Key Objectives (US$) Committed8 Progress Update Grant 5: Municipal Capacity Building Pilot Initiative for Nepal and Bangladesh Country: Nepal; Bangladesh 600,000 451,164 In FY16, learning workshops and activities were Sector: Public Administration Burn Rate: undertaken in Korea. These workshops initiated and Objective: To contribute to building municipal 75.2% fueled the knowledge exchange on municipal planning capacity to plan, fund and deliver urban and management among officials at central, municipal, infrastructure and municipal services in selected and local governments of Nepal and Bangladesh, and pilot municipalities in Nepal and Bangladesh; academia in the form of the Korean national think tank, and test innovative municipal capacity building Korean Research Institute for Human Settlement (KRIHS). initiatives and practices with the potential of being scaled up in the South Asia region. Grant 6: Promoting Skills Development and Job Creation in East Asia Country: East Asia and the Pacific (Regional) 1,300,000 653,631 The main activities that were completed in FY16 Sector: Education Burn Rate: included the completion of a Synthesis Report12 entitled Objective: To promote effective policies and 50.3% “National Quality Framework and Competency Standards: programs on skills development among the East Skills Promotion and Job Creation in East Asia and Pacific”; Asian countries, through deepening the knowledge completion and evaluation of the second ASEAN+3 Forum base, sharing and disseminating best practices, on Financing of Skills and TVET Programs (May 2016) in and leveraging on Korea’s experience in human Seoul; completion of an Impact Evaluation of the Dual resource development. Training System in the Philippines; and completion of two case studies of exceptional TVET schools in Korea13. Grant 7: Tiger hunts with Lions: Developing Agricultural Market Information System and Decision Simulation System to empower small holder farmers and boost productivity Country: Africa (Regional) 500,000 496,389 Consultations with Ugandan institutions and the Korea Sector: Agriculture Burn Rate: counterpart; and consultation between the World Bank Objective: To support the development of ICT- 99.3% team, government of Uganda and Korean counterparts to based mechanisms and approaches to improve the establish an initial plan for the development of the design productivity and profitability of farm enterprises of of the proposed e-extension and e-voucher programs have small-holder farmers in Africa. taken place. An initial concept note for e-extension and e-voucher programs in Uganda has been completed and disseminated. Grant 8: Development of an ICT-based creative economy and ICT Entrepreneurship in Developing Countries Country: Global 500,000 479,655 The 1st phase ETHOS14 Program took place in January Sector: Information and Communication Burn Rate: 2015. The 2nd phase of ETHOS Program took place in Technology (ICT) 95.9% SUNY Korea15 Campus in January 2016, and included Objective: To enhance the development of ICT diverse regions with focus on sustaining potential entrepreneurship in developing countries through entrepreneurs. The first round participants came transfer of technology, developing entrepreneurship from Bangladesh, Vietnam and Pakistan which fueled skills, and strengthening capacity building to the enough interest to have 30 teams in the second round participants from the developing countries, and from Algeria, Romania, Bulgaria, Mongolia, Bangladesh, trigger partnerships between startup communities. Indonesia, and Vietnam.  In addition, the program provides participating teams with opportunities to pitch their ideas to In collaboration with Korea’s National IT Industry global venture capitalists. Promotion Agency (NIPA), plans have been set for partnership between ETHOS and their startup supporting programs (tentatively named as Pan-Asia Startup Incubator) from as early as the second half of 2016. 12. A second Synthesis Report entitled “Financing TVET in the East Asia and Pacific Region: Current Status, Challenges, and Opportunities” is in draft form and is expected to be completed in early FY17. 13. A third case study on an exceptional TVET school in China is in draft form and is expected to be completed in early FY17. 14. Entrepreneurial Talents’ House of Opportunities and Supports (ETHOS) is a World Bank Group initiative funded by KWPF and implemented by SUNY Korea in collaboration with National IT Industry Promotion Agency (NIPA). 15. SUNY Korea is a partnership between Stony Brook University (SUNY) and the South Korean government, and was established in 2012 as the first American university in Korea. Annual Report 2016 | 21 Grant Amount Amount Disbursed & Key Objectives (US$) Committed8 Progress Update Grant 9: Combating Cybercrime: Tools and Capacity Building for Emerging Economies Country: Global 600,000 482,589 An on-line platform (Collaboration for Development – C4D) Sector: Knowledge, Learning and Innovation Burn Rate: for group communications and documents storage and Objective: To synthesize best practice – in 80.4% handling has been established. The best practice Toolkit is the form of a Toolkit – on the legal aspects of in draft form, and the Assessment Tool is complete, has combatting cybercrime, including building local been tested in its first in-country pilot. The project is in capacity for developing countries in the areas of the midst of procuring the services of a web-development policy, law and criminal justice aspects of the and publication team to assist with establishment of a global fight against cybercrime. project website, to convert the paper-based Toolkit and Assessment into visually attractive and easy to navigate products, and to ensure that the products are ready for interactive on-line use (Phase II). Grant 10: Collapse of bank and trade finance during the global crisis - Did SMEs suffer more? Country: Global 60,000 59,928 The report, entitled “The impact of the global financial Sector: Finance and Private Sector Development Burn Rate: crisis on firms' capital structure” was finalized and (IFC) 99.9% published in December 2015 and is available online at the Objective: To conduct research on the behavior following location: of banks and trade finance and evaluate whether http://documents.worldbank.org/curated/ SMEs experienced sharper drops in these sources en/2015/12/25705513/impact-global-financial-crisis- of finance relative to large firms. Research will firms-capital-structure be based on empirical analysis to estimate specifications, using debt ratios and debt growth rates. Grant 11: IT parks and IT clusters in Belarus as potential accelerators of ICT industry growth Country: Belarus 400,000 0.0 A changing political situation in Ukraine has prompted Sector: Information and Communication (initially Burn Rate: the original proposal to be amended such that Ukraine Technology (ICT) 600,000)16 0.0% is no longer a beneficiary of this activity, and focus will Objective: To help catalyze ICT industry and be entirely on stakeholders in Belarus. This amendment, skills development in Belarus and Ukraine through which has been reviewed and approved by the MOSF, does knowledge and best practices. This activity not alter the objectives and outcomes of the activity. will closely coordinate with the ICT Strategy The amended proposal will finance an assessment of Support for Belarus Trust Fund and will focus on the ICT industry development prospects in Belarus with select areas of the strategy such as ICT skills a focus on skills and a knowledge exchange event before (professional and vocational training) at the December 2016, and a study tour to Korea and a roadmap regional level in the secondary cities in Belarus. for ICT industry and skills development using Korean and other global best practice approaches before June 2017. Grant 12: A study of the labor market relevance and contribution of post-secondary education towards job creation and economic growth in Bangladesh Country: Bangladesh 250,000 118,213 The College Education Development Project (CEDP) under Sector: Education Burn Rate: which the Tracer Survey is being conducted was approved Objective: o enhance policy dialogue on the labor 47.3% by the Board on June 3, 2016 and it is expected to be market relevance of the college level education and signed in September 2016. training and their contributions to job creation in Bangladesh based on the new evidences collected The contract with a survey firm has been finalized and the by a tracer study of the graduates from colleges. team has been working closely with the firm to finalize the As the college education sub-sector had been instruments and questionnaires.  neglected in the past decades, this proposed tracer study will make substantial contributions to the accumulation and utilization of the evidences to facilitate policy dialogues on the sub-sector. 16. Initial grant amount of US$600,000 was reduced to $400,000 in June 2016 following the removal of one of the two countries (Ukraine) as a beneficiary of the activity. 22 | Annual Report 2016 Grant Amount Amount Disbursed & Key Objectives (US$) Committed8 Progress Update Grant 13: Feasibility and sustainability of a public-private partnership (PPP) approach to bring ultrafast broadband (UFB) and enhance local skills in a secondary city of Tunisia Country: Tunisia 275,000 0.0 The Program Concept was approved in November 2015, Sector: Information and Communication Burn Rate: and the project is on schedule for delivery in May 2019. Technology (ICT) 0% Objective: To accelerate access to high speed internet in Tunisia and to improve service delivery in Tunisia’s education sector by the use of ICT. Grant 14: Government cloud infrastructure assessments and action plans Country: Global 400,000 263,010 In FY16, the project developed the Cloud Readiness Sector: Information and Communication Burn Rate: Assessment Toolkit and conducted pilot studies for Technology (ICT) 65.8% three countries (Serbia, Philippines and Zambia) to test Objective: To support client countries evaluating and improve the model. A knowledge sharing workshop or planning to launch cloud computing enabled was held in May 2016 in Seoul to build capacities of shared ICT infrastructure platforms in support of stakeholders by sharing knowledge and best practices. The e-government initiatives, with subsequent value findings from the pilot studies were shared and discussed. to private industry, the academic community, and The Toolkit and country reports are being finalized. private citizens. By leveraging shared infrastructure and economies of scale, cloud computing provides countries with an effective business model for online service delivery. Grant 15: Co-creating smart nation action plans to catalyze digital transformation – one country at a time Country: Global 500,000 166,867 In FY16, the project team researched various approaches Sector: Information and Communication Burn Rate: to Smart Nation development with a focus on Korea, Technology (ICT) 33.4% Estonia and Singapore. Consultations with Korean experts Objective: To catalyze adoption of Smart Nation including NISA17 and the Korean Transport Institute, and programs, crowd source innovative ideas and a mission to Korea to research Korean best practices, co-create smarter solutions to key development partnership opportunities and knowledge resources took challenges by leveraging digital platforms for place, and the task team hosted a delegation of Korean increased growth and improved service delivery ICT officials in Washington. The team started to develop and shared prosperity while saving scarce public a Smart Nation Toolkit and assessment methodology resources and optimizing public investments. and reviewed Korean experience and relevant tools such as National Informatization Assessment Tool. Following consultation across the WBG, the task team identified the following priority countries to pilot the Smart Nation program: Rwanda, Kyrgyzstan, Serbia and Sri Lanka. A visit to Kyrgyzstan to organize a Smart Nation workshop took place in December 2015. Grant 16: Youth employment in animation industry in Jamaica Country: Jamaica 600,000 121,493 A train the trainer program for faculty of key educational Sector: Information and Communication Burn Rate: institutions (tertiary and vocational) was put in place Technology (ICT) 20.2% in July 2015 in collaboration with Capilano College Objective: To support youth employment in the (Vancouver, Canada). A study tour in May 2016 digital and animation industries in Jamaica. successfully helped to create and build the relationships and networks that would allow the successful implementation of the KWPF-funded grant in Jamaica. Grant 17: ICT strategy support for Belarus Country: Belarus 500,000 136,830 World Bank management approval of the concept was Sector: Information and Communication Burn Rate: achieved in May 2016, and the activity is on track to be Technology (ICT) 27.4% delivered to key stakeholders in May 2017. Objective: To support the Government of Belarus to design and implement its ICT Strategy to strengthen and broaden this sector as a key driver of long-term economic growth, through collaboration with Korean partners. 17. National Information Society Agency. Annual Report 2016 | 23 Grant Amount Amount Disbursed & Key Objectives (US$) Committed8 Progress Update Grant 18: The practice of Universal Health Coverage in Developing Countries Country: Global 550,000 124,411 Building on the analytical findings of a successfully Sector: Health, Nutrition and Population Burn Rate: completed WBG program that supports UHC, UNICO Objective: To provide support to client countries in 22.6% (Universal Health Coverage Study Series), preparation of their efforts to achieve Universal Health Coverage a prospectus of UHC skills which extensively leverages (UHC) through programmatic knowledge services Korean experience and expertise is underway. in a strategic collaboration with Korea. Grant 19: South-South Knowledge Exchanges in Energy Efficiency (EE): Learning from EE Policy Implementation, Financing and ESCO Development Experience and Practices in Korea Country: South Asia 275,000 3,565 The Concept Review for this activity took place in July Sector: Energy and Extractives Burn Rate: 2016, and the output is expected to be delivered in June Objective: To facilitate the dissemination, sharing 1.3% 2018. and exchange of knowledge, primarily drawing upon Korea’s extensive experience and leadership in the area of Energy Efficiency (EE) and Demand Side Management (DSM). This activity aims to enhance connectivity between EE specialists within the WBG, country stakeholders from South Asia, and key players in Korea. The activity seeks to improve client country capacity todeliver EE projects, and WBGs skills in preparing demand side EE projects. Grant 20: Building Capacity of Countries in the Smart Africa Alliance for Sustainable ICT Interventions and Feasibility Study for an eAfrica Academy Countries: Burkina Faso, Chad, Cote d’Ivoire, 700,000 0.0 Having achieved World Bank management concept Gabon, Mali, Nigeria, Kenya, Senegal, Rwanda, Burn Rate: approval in May 2016, planning of a series of innovative South Sudan and Uganda (Regional) 0.0% capacity building activities for government, private and Sector: Information and Communications academic audiences is underway. Technologies (ICT) Objective: To accelerate sustainable socio-economic development and usher Africa into the knowledge economy era through smart use of ICT – that is, leveraging ICT to improve sustainable development, accountability, efficiency and transparency. Grant 21: Strengthening Civil Registration and Vital Statistics and National ID Management Systems (P159141) Country: East Asia and the Pacific 900,000 760,754 A Global Forum on Strengthening Civil Registration and Sector: Health, Nutrition and Population Burn Rate: Vital Statistics (CRVS) and National Identity Management Objective: To support implementation of the 84.5% Systems (IDMS) in Seoul in December 2015 was organized Global Scaling-up Investment Program 2015-2030 by the MOSF, WBG and Korean institutions18. Participants for strengthening Civil Registration and Vital included government officials from ten countries19. Statistics, national identity management systems, and health information systems in low and middle Discussions are under way to arrange joint Korea-WBG income countries. technical assistance to Indonesia, Myanmar, and the Philippines, as well as creating a Pacific Islands regional approach in an effort to improve CRVS and IDMS. Grant 22: Constructing a Health Care Atlas in Colombia Country: Colombia and Peru (Regional) 500,000 152,349 Activities that took place in FY16 include: (i) knowledge Sector: Health, Nutrition and Population Burn Rate: exchanges between Korean and Colombian researchers, Objective: To support Latin American countries, 30.5% including their participation in the Spring Meetings of the notably Colombia and Peru, to enhance health Wennberg International Collaborative on Health Atlas; (ii) information systems as an enabling element learning from the Korean Health Atlas; and (iii) technical toward UHC. This grant builds on the experience assistance onthe institutionalization and construction and results of previous efforts to expand the use of of an Atlas of geographic variations in health care the Health Atlas framework and methodology to of Colombia, sources of information, an international identify and measure geographical variation in the literature review, strengthening of the Atlas pilot study, health sector and study its determinants. and publication and dissemination. 18. Korean insitutions included: Ewha Womans University (EWU), Korea Institute of Public Administration (KIPA), KDI School of Public Policy and Management, Knowledge Sharing Program (KSP), and Korea Eximbank 19. Costa Rica, Estonia, Indonesia, Korea, Laos, Liberia, Myanmar, Peru, the Philippines, and Vietnam. 24 | Annual Report 2016 Grant Amount Amount Disbursed & Key Objectives (US$) Committed8 Progress Update Grant 23: Enhancing Teacher Effectiveness for improved productivity in Vietnam Country: Vietnam 350,000 0.0 Project appraisal took place in April 2016, and formal Sector: Education Burn Rate: project negotiations began in June 2016. The project was Objective: To assist the WBG and Vietnamese 0.0% approved by the Board on June 29, 2016 and will remain government prepare and implement the Enhancing effective until June 30, 2022. Disbursement from this Teacher Education Program (ETEP), while building grant is expected to commence in early FY17. capacity of key stakeholders to conduct similar analytical and technical support in the future. The grant provides the advantage of just-in-time support, and an objective source of advice and ideas. Grant 24: Assistance for trade facilitation reforms implementation in Sub-Saharan Africa, South Asia and East Asia and the Pacific Country: Sub-Saharan Africa, South Asia and East 500,000 0.0 WBG management endorsement of the deliverable was Asia and the Pacific (Regional) Burn Rate: received in May 2016, and the activity is expected to be Sector: Trade and Competitiveness 0.0% completed by June 2019. Objective: To support developing countries in their efforts to strengthen their trade logistics systems, policies and procedures, with a view to enable them to effectively implement trade facilitation reforms that enhance private sector competitiveness, increase trade flows, and facilitate investments and job creation. Grant 25: Haiti Access to Economic Opportunities and Social Services Country: Haiti 310,000 9,900 While currently in the early stages of implementation, the Sector: IFC Burn Rate: activities financed under this grant are expected to be Objective: To support the expansion of Micro, 3.2% completed by June 30, 2017. Small, and Medium Enterprises (MSMEs) as part of dloHaiti’s20 water distribution value chain, through training and other advisory services, increasing the value chain’s capacity to distribute water in under- served areas of Haiti in a sustainable manner. Grant 26: Standard Framework for Deployment of ICT-based Transport Systems in Developing Countries Country: Global 600,000 53,250 Concept approval will be sought in September 2016, and Sector: Information and Communications Burn Rate: the activity is targeting a delivery date in May 2018. Technologies (ICT) 8.9% Objective: To develop a standard framework of mobile-based ITS services that can be used as a technical guideline for central and local government officials in the preparation of ITS Master Plans. Grant 27: Development of ICT-based Smart City Strategies and Financing Options; Learning from Korea’s Experience Country: Global 900,000 307,742 Work is underway, and this project is anticipated to be Sector: Social, Urban and Rural Development Burn Rate: delivered by June 2017. Objective: To support client cities under rapid 34.2% urbanization to establish action plans to develop ICT-based smart cities, and launch pilot smart solutions that have a broad impact on citizens’ lives. The aim will be to provide client cities with better citizen-centric public services with ICT as the critical enabler, and facilitate a platform for knowledge sharing and partnership building between client cities and Korea. 20. DloHaiti  is a for-profit venture providing safe drinking water to consumers in underserved countries such as Haiti. Refer to: http://www.dlohaiti.com/ Annual Report 2016 | 25 A brief overview the grants approved under the fourth call for proposals, and their key development objectives, are shown in Table 8 below. Table 8: Window 3 Activities Approved in Fourth Round Country and Sector Key Development Objective Grant 28: Expanding Finance to Smallholder Farmers through the Utilization of Big Data from Mobile Technology Grant Amount: US$1,200,000 This activity will take recent advances in ICT and technologies and, working with cellphone, Region: Global mobile money and technology partners in three regions, test the ability to dramatically expand Sector: Agriculture lending to farmers utilizing cellphone data, agency banking, and satellite weather data / crop suitability models in three pilot locations. Results will be disseminated globally, and if positive, will potentially lead to a substantial expansion of lending to smallholders for investment in farms and subsequently provide the financing bedrock on which it will need to stand. Such an expansion of lending would be via both traditional lenders such as banks and new lenders such as mobile money providers. Grant 29: Piloting Sensor and Cell phone Applications for Automating Irrigation in Rice Grant Amount: US$1,200,000 Development Objective: To test the feasibility of applying sensors for automating irrigation to Region: East Asia and Pacific promote alternate wetting and drying in paddy fields in three countries. The sub-objectives are: Sector: Agriculture (i) to review and compile past and existing experience of testing sensor application for rice water management in developing countries; (ii) to test the technical feasibility of different types of automated sensors for soil moisture, water pressure, and/or water sufficiency and configure them to specific requirements for alternate wetting and drying; (iii) to pilot this application in three countries (one each from South East Asia, South Asia, and Sub-Saharan Africa); (iv) to refine the automation mechanism based on the experience of three pilots; and (v) publish and disseminate the findings to a global audience and release all the technical specifications and protocol on open source platforms for broader dissemination. Grant 30: Strengthening Surveillance of Non-communicable Diseases (NCD) in Africa Grant Amount: US$ 600,000 Development Objective: To support African countries to strengthen NCD surveillance as a critical Region: Africa step towards meeting the World Health Organization (WHO) global NCD voluntary targets. This Sector: Health, Nutrition and will be achieved through a well-designed set of activities combining analytical work, assessments Population and south-south knowledge exchange on NCD surveillance, as well as integrating NCD surveillance with health information systems in building robust capacity for NCD monitoring, prevention and control. Grant 31: Collaborating to improve health insurance data analytics in EAP Grant Amount: US$ 600,000 Development Objective: To build the capacity of select countries to review and analyze health Region: East Asia and Pacific insurance claims data, thus improving efficiency and transparency of these countries’ health Sector: Health, Nutrition and insurance systems, and share knowledge of challenges and opportunities for strengthening health Population insurance review processes across countries pursuing UHC-oriented reforms in the health sector. Component 1 will provide country-specific technical assistance for improved health insurance claims review and assessment in Cambodia, Philippines, Vietnam and one other selected country. Component 2 will consist of regional workshops, including other countries beyond the four focus countries, on claims review and medical audit. Grant 32: Right to Health and Universal Health Coverage: Support to the SaluDerecho21 Initiative Grant Amount: US$ 600,000 Objective: To support the countries that are members of Salu Derecho in their efforts towards Region: Global the realization of the right to health and universal health coverage. More specifically, the WBG Sector: Health, Nutrition and would, in collaboration with Korean partners such as HIRA (Health Insurance Review and Population Assessment Service) and the NHIS (National Health Insurance Service), assist these countries in the development of the tools and instruments, particularly those related with information systems that can support the implementation of the right to health and universal health coverage strategies. Grant 33: Improving Quality of Care and Health Care Systems in Kenya 21. SaluDerechooriginated in Latin America as a multi-stakeholder, highly participatory process around the judicialization of health—a complex problem where human rights, health system financing and policies, markets, and politics interconnect. SaluDerechostarted by identifying the conflict areas among key stakeholders, understanding the causes of judicialization, and developing mutual trust. 26 | Annual Report 2016 Country and Sector Key Development Objective Grant Amount: US$ 600,000 Objective: To provide evidence-based policy on: i) the constraints to, and potential mechanisms Region: Africa for improving patient safety and quality of care in low-income countries for health facilities in Sector: Health, Nutrition and both the public and private sectors, contributing to the design of effective systems for Universal Population Health Coverage (UHC); and ii) the design of accountability systems that can work at scale to improve Health Care System Operation in low-income countries, including lessons from the Kenya Patient Safety Impact Evaluation (KePSIE)22 institutional arrangements for local county health management teams as well as for the central government. Grant 34: Capacity-building for Innovative ICT-based Land Management Systems Grant Amount: US$ 800,000 Objective: To enhance human capacity and incubate innovation for the design and Region: Global implementation of modernized ICT-based Land Information and Management Systems in the Sector: Information and public and private sectors in selected developing countries. This objective will be achieved by: Communication Technology (ICT) i) undertaking a diagnostic analysis of institutional and human capital ICT-related capacity constraints in the field of Land Information and Management Systems, leading to a tailored set if capacity-building guidelines; ii) conducting a direct knowledge exchange on ICT-based Land Information and Management System development between Korea and the beneficiary countries; and iii) preparing and disseminating a global knowledge product that showcases relevant lessons about Korea’s trajectory in the development of an efficient ICT-based Land Information and Management System. Grant 35: Building a Transport Data Management System to Benchmark Corridor Performance Grant Amount: US$ 500,000 Objective: To design an intelligent transport data management system (TDMS) allowing for Region: Global transport corridor performance monitoring and management in the Western Balkans. The system Sector: Information and will rely on most recent developments in ICT for gathering transport data and managing transport Communication Technology (ICT) database to provide a decision-making support to different corridor stakeholders (regional policy makers, the EU, development institutions, private sector participants), freight forwarders, shippers, logistic providers, and those who wish to monitor the corridor performance through the enhanced data accessibility. Grant 36: Improving Workforce Training in Europe and Central Asia (ECA) Grant Amount: US$ 800,000 Objective: To identify effective strategies to improve workforce training in ECA, with a focus Region: Europe and Central Asia on enhancing the match between skills supply and demand. The grant will result in enhanced Sector: Education knowledge of good practices with respect to quality assurance of workforce training institutions, improved linkage between employer demand and curriculum for workforce training institutions, and enhanced school-industry partnership through improved implementation and monitoring of dual education programs. Grant 37: Leveraging Korean Knowledge and Experience to Strengthen Capacity in Applied Sciences, Engineering and Technology in sub- Saharan Africa Grant Amount: US$ 1,800,000 Objective: To share and leverage Korean knowledge and experience in technical and vocational Region: Africa education and training (TVET) and Applied Sciences, Engineering and Technology (ASET), areas Sector: Education critical for the socio-economic transformation of sub-Saharan Africa. Grant 38: Global Cyber Security Capacity Building Program Grant Amount: US$ 1,000,000 Objective: To assist selected developing countries in strengthening their national cyber security Region: Global environment through customized programs of technical assistance and capacity building activities. Sector: Information and Communication Technology (ICT) Grant 39: Pacific Islands Civil Registration and Vital Statistics (CRVS) and National ID Management Systems Grant Amount: US$ 925,000 Objective: Regional project identification and the development of a project document for future Region: East Asia and Pacific Investment Project Financing for CRVS and IDMS development in East Asia Pacific (EAP) focusing Sector: Health, Nutrition and on Pacific Island Countries. The grant will support analytic work, policy dialogue, and project Population preparation and appraisal activities laying the foundation for future lending operation(s) with a potential for IDA-Korean Exim Bank co-financing. 22. Kenya Patient Safety Impact Evaluation (KePSIE), a country-led effort to design, implement and evaluate a patient safety inspection system for public and private facilities. The KePSIE project works closely with country counterparts to (a) design and implement the inspection system; (b) develop an validate novel methods for measuring patient safety in low-income contexts and scale up these methods to large samples; and (c) evaluate the impact of inspections regimes on patients safety using a gold-standard Randomized Controlled Trial. The KePSIE trial is the largest patient safety trial in any low- or middle-income country today and its results will hold wide applicability for a large number of countries around the world. Annual Report 2016 | 27 RESULTS FRAMEWORK on how programmatic activities will inform upstream policy AND MONITORING discussions and policy dialogue, and WBG policy instruments. Annex 2 lists concrete outputs achieved during the reporting The three windows of the Facility support standalone period and overall indicators against which results will activities and programs across numerous sectors, involving be measured. Through regular annual reporting (i.e. grant a combination of technical assistance, free-standing and co- reporting and monitoring report, or GRM), task teams have an financing operations, executed by the recipient and the World opportunity to correct mid-course expected outputs in case Bank, that will jointly result in the long-term development planned activities face any implementation roadblocks. objectives of the Facility. Longer-term outcomes of the Facility, which are reflected in the proposed results framework (see At the country, regional and global levels, the longer-term, Annex 5) include the following: final outcomes of the Facility’s support for Window 3 are: a) increased uptake and utilization by developing country a) positive changes in beneficiary countries’ policies, laws and beneficiaries of the lessons learned from the development regulations that promote sustainable economic growth experiences of other, more advanced countries, and b) and are attributable to the Facility; improvements in development effectiveness of beneficiaries b) enhanced relevance, effectiveness and efficiency of the World as a result of applying those lessons. The main Intermediate Bank strategies and operations supported by the Facility; Indicator for the Window 3 is “increased access to world c) improved development aid effectiveness resulting from class knowledge and lessons learned on sustainable and changes in the development approaches of aid donors inclusive economic development”. Already in this early phase and other development partners, based on lessons learned of implementation, some of the grants’ outputs, such as from the Facility; and Partnership in Knowledge: Learning from Korean development d) increased adoption and use by beneficiary countries experience for a sustainable growth of Vietnam, are directly of development knowledge that are produced and supporting facilitation of knowledge exchange between Korea mainstreamed through the Facility. and the beneficiary country and the early results indicated high utilization of the shared lessons learned. While the Facility has reached the end of its third year, the underlying activities are in various stages of implementation, In the future, it will be important to continue to systematically it is difficult to aggregate the early results into concrete track outputs of the individual grants in order to enable outcomes. It is important to note that the design of the grants rigorous measuring of results achieved. under implementation place a strong emphasis on an effective results framework. Within the well-established Window 3, All activities and projects funded by the KWPF are subject task teams’ proposals are required to include a detailed list of to the same reporting requirements and held to the same anticipated outputs and outcomes of each grant, and a report standards as those funded by the WBG’s budget. 28 | Annual Report 2016 Annual Report 2016 | 29 3. FEATURE STORIES FLOOD EARLY WARNING SYSTEM FOR THE KENYA WATER SECURITY AND CLIMATE RESILIENCE PROJECT (WINDOW 2) The Flood Early Warning System for the Kenya Water Security models and community early warning systems. An important and Climate Resilience Project was the first project approved aspect of the support includes technical assistance for the under Window 2. In early 2014, the Government of Kenya Government of Kenya to help its staff better understand flood requested financing from the WBG to fund the rehabilitation early warning methodologies and options employed elsewhere and repair of flood protection structures in Western Kenya, in the world, including in Korea. on the lower Nzoia River near Lake Victoria. Negative impacts of floods have been increasing in severity and frequency over The Grant Agreement was signed by the World Bank and the past decade, as the existing flood control infrastructure Republic of Kenya in September 2015, and the Kenyan project is reaching the end of its designed-life. It is estimated team immediately began work with the Kenya Meteorological that over 66,000 people are affected negatively when the Department to assess current model and existing equipment current dykes breach during floods, including through loss of to identify needs. The Kenya project team, which is housed at life, property, increased disease burden, impeded access to the Water Resources Management Authority, has engaged in schools and other social impacts. a multi-stage capacity building exercise, funded by the Korean grant. With its new capacity, WRMA has developed plans The KWPF grant to the Government of Kenya will support for the design and installation of the upgraded FEWS, which the improvement of the local flood early warning system included participation of stakeholders (including the Ministry in the region, to complement the World Bank financing of Water and Irrigation, Kenyan Meteorological Department, for improvement of the flood control infrastructure. The counties along the Nzoia River, Kenya National Disaster grant includes support for enhanced hydro-meteorological Authority, Red Cross). The RFP for the contract is expected to monitoring equipment, a flood control center, improved be released in September or October 2016. 30 | Annual Report 2016 MUNICIPAL CAPACITY BUILDING PILOT INITIATIVE FOR NEPAL AND BANGLADESH (WINDOW 3) The objective of this activity is twofold: (i) to contribute to building municipal capacity to plan, fund and deliver urban infrastructure and municipal services in selected pilot municipalities in Nepal and Bangladesh; and (ii) to test innovative municipal capacity building initiatives and practices with the potential of being scaled up in the South Asia region. Throughout FY16, this grant has supported learning workshops and activities that have initiated and facilitated knowledge exchange on municipal planning and management between central, municipal, and local government officials of Nepal and Bangladesh, and the Korean Research Institute for Human Settlement (KRIHS). In addition, the grant has provided crucial support to the Nepal Emerging Towns Project through a series of knowledge exchange and on-the-job training activities for the participating cities. In Bangladesh, the grant is supporting the preparation of a pilot for selected Pourashavas (municipalities) to enhance their infrastructure and service delivery under the third Bangladesh Local Governance Support Project. These activities are both critical to continuing the dialogue and progress in this area, and in order to maximize the potential impact, the grant was extended to support activities planned for the remainder of 2016 and in the first half of 2017. Forward looking plans include capacity building activities for pilot municipalities to plan, fund and deliver urban infrastructure and services, and continued support to enhance the sustainability and impact of the WBG urban projects in Nepal and Bangladesh. TIGER HUNTS WITH LIONS: DEVELOPING AGRICULTURAL MARKET INFORMATION SYSTEM AND DECISION SIMULATION SYSTEM TO EMPOWER SMALL HOLDER FARMERS AND BOOST PRODUCTIVITY A WBG team visited Uganda in June 2016 to lead a joint growing, preparing, planting, fertilizing, weeding, harvesting, hackathon event convening 35 participants from Uganda sort etc. These topics were selected on the basis of the findings and South Korea. Over the course of the four days, hackers from one-on-one farmer interviews. (participants) developed ICT based tools and applications to address specific challenges and opportunities faced by The #Hack4ag Hackathon was hosted jointly by the Ministry Uganda’s smallholder farmers. The hackers worked on five of Agriculture, Animal Industry and Fisheries (MAAIF) and focus areas: i) creating access to information about relevant, the WBG and in partnership with Airtel and the National local, precise and on-demand market prices for farmers; ii) Information Technology Authority for Uganda (NITA-U). information sharing of data on pests and disease outbreaks to decrease pre-and post-harvest losses; iii) technology interfaces The curriculum was designed to encourage participants to that are intuitive and user-friendly and customized with channel their capacities and focus their talents into the local languages; iv) linking farmers directly to meteorological common purpose of conceptualizing and developing solutions information about current and expected weather patterns in that could add value to Ugandan smallholder farm enterprises. their immediate locales; and v) providing access to localized The strength of this process lies in directing participants cropping calendars with clear guidance on the phases of to reframe their context by focusing on the possibilities. In Annual Report 2016 | 31 addition to maximizing tangible outputs, this process provided experiences across many verticals, mediums and devices. a learning opportunity for the hackers and concentrated The outputs/products that were created by participants are on establishing working relations between the Korean and detailed in Table 9. Ugandan hackers. Following the hackathon, mentorship for developers to The hackathon included the participation of a team of continue to improve their prototypes was arranged, outputs mentors, which counseled participants on the development of and lessons learned are being documented, learning events their ICT products. Mentors included the Co-founder and CTO for WBG staff are being organized, and a final #Hack4ag of !nnovate Uganda, a technology company that is helping social Hackathon report for public distribution is being drafted. It is and humanitarian organizations adopt technology in their envisioned that some or all of the applications created by the programs, and the founder of Tailored Technologies, a creative hacking teams will be further developed and made available to web design agency, focused on unique, stylish and usable farmers who participate in the ACDP project. Image 1: Solomon Opio, Capacity Development Lead, pitching Image 2: The team of hackers (participants) that was deemed his idea. to produce the winning application Table 9: Outputs/products Created by Hackathon Participants Application Name Solution (product) Agrofinder App A mobile USSD application to bridge the gap between farmers, model farmers and credible plant medicine vendors. Smart Market Developed a USSD system in which farmers set prices for potential buyers in and outside their areas of operation. For perishable products the farmer can pre-list his/her goods before harvest to inform his buyers when his prospective produce will be available for sale. Agro-Unbuntu Harnessing the power of collecting, this mobile application incentivizes farmer groups’ organization and mobilization by providing weather, pricing and industry updates to the farmer groups. Seasons A smart phone application that provides accurate and reliable updates to radio stations by capturing and layering data from multiple weather sources. Kaungalia / Fake Seeds A multi-platform interface that allows farmers to verify the quality of seeds and locate seed retailers using voice commands, phone scanners and phone keys. It also allows farmers to use vouchers online. Farmers Amazon An application providing weather, market and transportation information to farmers. 32 | Annual Report 2016 PROMOTING SKILLS DEVELOPMENT AND JOB CREATION IN EAST ASIA (WINDOW 3) Korea is keenly interested in facilitating the 2015 goals This grant not only provides financing for knowledge of ASEAN economic integration, and Labor mobility and generation, dissemination, as well as exchanges among the mutual recognition of qualifications have become part of the EAP countries, but has also become an important platform integration discussion. The main objective of this activity is to and network for the TVET policy makers and international promote effective policies and programs in skills development development community in the areas of skills and job and job creation in the East Asia and Pacific (EAP) by: (i) creation. The success story of the Korea TVET (Korea Case contributing to the existing knowledge and evidence base by Studies of post-secondary TVET Youngjin College and the conducting cutting-edge analytic work on skills at country Busan National Mechanical Technical High School) is being and regional levels; (ii) providing a high level ASEAN+3 forum told very well through this program. The collaboration between on skills, on competency standards and national and regional the WBG education global practice in EAP with Korea’s qualifications framework; and (iii) promoting dissemination Ministry of Employment and Labor has allowed policymakers and learning exchanges on promising policies and programs from both education and labor to learn from each other. The in skills development and job creation within and beyond the cross collaboration of education and labor is rather unique EAP region, including best practice examples from Korea. and brings much valued added. The following activities have been undertaken and/or have been completed in FY16: A Synthesis report on National Quality Framework and Competency Standards was completed. This report brings together the research undertaken of 12 EAP countries (Cambodia, China, Indonesia, Korea, Lao PDR, Malaysia, Mongolia, Myanmar, Philippines, Singapore, Thailand, and Vietnam) that participated in the 1st ASEAN+3 Forum on technical and vocational education and training (TVET) qualifications framework and competency standards in the EAP. This report will serve as a background paper for an official publication planned to be disseminated in FY17. Following the first ASEAN+3 Forum on Skills in April 2015 in Incheon Korea, the second conference was successfully completed in May 2016 in Seoulin collaboration with Korea’s Ministry of Employment and HRD Korea. It was attended by 60 participants, comprising of 13 WBG staff members, one UNESCO representative, and 47 participants from 11 EAP countries including Brunei, Cambodia, China, Indonesia, Mongolia, Malaysia, Papa New Guinea, Philippines, Singapore, Thailand, and Vietnam. The key objectives of this Forum were to share country progress and challenges in the financing of skills and TVET programs and country experiences in implementing the dual training system. During the Forum, each participating country was requested to provide a rapid assessment of their country’s TVET financing. The first draft of this assessment report is complete, and will be used a background material for an official publication on TVET financing in EAP to be completed and disseminated in FY17. Annual Report 2016 | 33 DEVELOPMENT OF ICT-BASED CREATIVE ECONOMY AND ICT ENTREPRENEURSHIP IN DEVELOPING COUNTRIES (WINDOW 3) The Entrepreneurial Talents’ House of Opportunities and coaching, networking opportunities with each other and with Supports (ETHOS) is a WBG initiative that is funded by the Korean start-ups community (incubators and accelerators) KWPF and implemented by SUNY Korea in collaboration with and possible collaborative ventures. The WBG/SUNY team the National IT Industry Promotion Agency (NIPA). ETHOS continuously ensure that the program is implemented aims to enhance the development of ICT entrepreneurship in smoothly and effectively, and emphasizes the importance of developing countries through transfer of technology, developing participant feedback to identify and address any areas for entrepreneurship skills, and strengthening capacity building to development, and build on areas of success. the participants from the developing countries, and trigger partnerships between startup communities. In addition, the The WBG/SUNY team have held discussions with NIPA and program provides participating teams with opportunities to established a plan for partnership between ETHOS and NIPA’s pitch their ideas to global venture capitalists. startup supporting programs (tentatively named Pan-Asia Startup Incubator) from as early as 2016. It was evident that Building on the 1st phase ETHOS Program which took place collaboration and partnership with the relevant Korean ICT in January 2015 and included participants from Bangladesh, entities and counterparts enhanced the WB client countries’ Vietnam and Pakistan, the 2nd phase took place at the SUNY opportunities to promote and foster ICT entrepreneurship. Korea campus in January 2016 with a focus on sustaining potential entrepreneurs. Participants included 30 teams from Going forward, the team hopes to develop and deliver similar Algeria, Romania, Bulgaria, Mongolia, Bangladesh, Indonesia, advanced training programs to foster an ICT-based creative and Vietnam. economy and job creation through similar initiatives, namely facilitating technology transfer, with increased business incubation This WBG/SUNY Korea program is the first joint project and acceleration. The impact on participants is immediate,and between the two institutions, and has significant potential (as these enhanced entrepreneurial skills will develop businesses, evidenced by increased request for participation) to attract create jobs, link developing countries to Korean agencies and and engage brilliant young minds from the developing world in entrepreneurs, and eventually a bridge will be created between the the ICT entrepreneurship field to obtain the necessary training, Korean (and global) Investors and Venture Capitalists. 34 | Annual Report 2016 COMBATING CYBERCRIME: TOOLS AND CAPACITY BUILDING FOR EMERGING ECONOMIES (WINDOW 3) This project comprises of four principal components: i) Library will be available as global public good. development of a Toolkit on capacity building to combat cybercrime (in a book and web format); ii) completion of a The Toolkit is in draft form (about 85% complete), and the Cybercrime Capacity Building Assessment; iii) development of Assessment Tool is complete, has been tested in its first in- a “virtual library” of best practices in the area of combatting country pilot, and is in a “beta” state of development. cybercrime; and iv) in-country assessments. The first in-country pilot of the Assessment tool was The project has conducted best practice research through conducted in Myanmar in February 2016, and the task team meetings and consultations with project partners – the Council has been invited back by the counterparts in Myanmar for of Europe (OCTOPUS), United Nations Conference on Trade additional consultations on best practices. The Project and Development (UNCTAD), and Oxford University – as well as expects to conduct 2-3 more in-country assessments using the International Criminal Police Organization (INTERPOL) and the Assessment Tool. In addition to Trinidad and Tobago, Sri European Police Office (Europol). Participation in cybercrime events Lanka and Rwanda have expressed interest in having pilot and consultations with these and other relevant organizations assessments being conducted in their countries. The purposes has validated the project approach and design, and served as of the assessments is to both provide the country with an input into the Toolkit, validating demand by developing countries independent view of its preparedness to fight cybercrime for the kind of knowledge “portal” that the Toolkit will provide, based on the indicators developed in the assessment and to including the value of the in-country assessments provided by inform the content of the Toolkit itself. the Assessment Tool. The Korea Supreme Prosecutor’s Office (KSPO) contribution was instrumental. The project team submitted a request for funding Phase II under KWPF Window 3 in January 2016. Phase II will convert The Toolkit is a knowledge product that will be available in the “static” on-line version of the Toolkit, to an interactive hard-copy and electronic format. It will act as a “portal” of web-based tool, with on-going duration. As a logical next step best practices in the legal aspects of fighting cybercrime, with from the Assessment, Training Modules, following the logic links to project partners’ materials and the “virtual library” and framework of the Toolkit & Assessment will be developed being established. The Toolkit will include the Assessment, so that after an assessment has been made, targeted training and will be available as a stand-alone product on the Project can be obtained in the areas identified. website. Together, the Toolkit, Assessment Tool and Virtual Annual Report 2016 | 35 GOVERNMENT CLOUD INFRASTRUCTURE ASSESSMENTS AND ACTION PLANS (WINDOW 3) This project aims to provide opportunities for client countries reality. These countries were identified and selected based to build their capacities to plan and implement a government on local government interest, geography, and differences cloud computing system, which will help them more easily across a variety of country level statistics. While each of the exploit, share and integrate ICT products and services across countries has unique gaps, they are similar in that they have different government agencies; as government embark on a large number of paper processes, limited number of skilled digitization projects to improve performance, accountability resources, and a major upcoming election. and service delivery to citizens. Cloud platforms, when correctly implemented, can potentially provide greater A knowledge sharing workshop was held in May 2016 in flexibility in terms of allocating and managing resources Seoul, and included participants from the WBG task team, (both computing and personnel), standardization of the the Korean government, and Korean experts in the area of overall enterprise architecture, thus simplifying maintenance cloud computing. The workshop successfully built capacities and future application development, and opportunities for of stakeholders by sharing knowledge and best practices. The governments to build up technical skills that can help a findings from the pilot studies were shared and discussed to country be technology competitive on the international stage. refine the final documents of the project, which will be posted on the WBG website as an open source for client countries. In order to better assist governments with this challenge, the The task team met with the Ministry of ICT and the Ministry project developed the Cloud Readiness Assessment Toolkit, of Finance to share outcomes of the project and discuss which is a series of questions that determines where a country future opportunities for collaboration. is in terms of overall readiness and recommendations on how they can better position their government to take advantage Looking ahead, the team will finalize the Toolkit and country of cloud computing. This Toolkit, which is highly transferable reports in FY17. Once finalized, the Toolkit will need to be from country to country, was developed with a consulting upgraded when additional country pilots are conducted and group (composed of Accenture, NIA, and Duzon), and cloud the task team will explore additional sources of trust funds, computing providers (such as Amazon and Microsoft) to including from KWPF, so as to ensure this knowledge product ensure the technical robustness of the questionnaire. Pilot can remain useful to client countries. The team is also seeking studies were conducted for 3 countries (Serbia, Philippines, additional financing to deliver five more country assessments Zambia) to test the model and improve it based on our clients’ at the request of client governments. 36 | Annual Report 2016 YOUTH EMPLOYMENT IN ANIMATION INDUSTRY IN JAMAICA (WINDOW 3) Jamaica is seeking to continue the growth of its animation • Skills Exchange. This exchange will facilitate Korean studio sector efforts are being made to forge lasting collaborative workers being placed in Jamaican studios for protracted relationships with other regions. This activity aims to facilitate periods of time, during which time Korean experts will offer an exchange between Korea and Jamaica, which would advice and demonstrate proven in-studio techniques in an allow Jamaica to learn from Korea’s extensive experience in effort to raise efficiency and the quality of output from nurturing and sustaining its successful globally-competitive Jamaican studios. This will be executed from November animation industry, while allowing Korea to extend its brand 2016 through June 2017. in a tangible way, promoting trade with the Caribbean region and establishing partnerships to expedite industry growth. • Structure mechanism to facilitate production/co- This activity will focus on six sub-projects, each of which are production of a Jamaican show. A Korean studio, Taktoon at different stages of completion, and the progress of which Enterprises, is interested in working with Jamaican studios is outlined below: to produce their original animated show “The Forks with Spiky Hands”. This initiative is subject to the Jamaican • An Internship Programme. The Korean studio Funny studios being able to offer a significant cost reduction Flux has agreed to take on up to ten Jamaican interns in the current production processes. Negotiations with as production staff for a period of up to eight months to Taktoon Enterprises are underway and the team is work on current TV programmes, such as “Tickety Toc” working on determining the most appropriate mechanism and “Super Wings”, thereby gaining invaluable creative, that would allow the activity to take place. production and distribution experience. The call for interns is scheduled to close on September 9, 2016 allowing for • A delegation of Jamaican stakeholders will attend the Korea the interns to begin as early as November 1, 2016. Service and Content Market in October 2016 in response to an invitation by the Korea Trade Promotion Corporation • Establishment of Virtual Community of Practice (KOTRA), with time allotted to pre-Market activities and (VCoP). In an effort to sustain and leverage partnerships post-Market meetings. The Jamaican delegation has forged, an electronic portal will be created and populated already been identified and negotiations with KOTRA with expert level content for reference by both Jamaicans relating to the Jamaican delegation’s placement in the and their Korean counterparts. The VCoP is projected to be Market is underway. available in October 2016. Annual Report 2016 | 37 DEVELOPING PARTNERSHIP BETWEEN KOREA AND AFRICA FOR HUMAN RESOURCE AND SKILLS DEVELOPMENT IN APPLIED SCIENCES, ENGINEERING AND TECHNOLOGY (PASET) PASET is an initiative owned and led by African countries on applied science, engineering and technology within each formed in 2013 in response to the critical need to strengthen country. the scientific and technological capacity of Sub-Saharan African (SSA) countries, to advance their development • A PASET governance study, which aims to recommend and economic transformation. To achieve this goal, PASET possible medium and longer-term governance structure of espouses collaboration between African governments, the RSIF and PASET, was completed. The team interviewed private sector, development partners, and new partner key stakeholders including Korea Development Institute countries from Asia (including Korea) and Latin America. In (KDI) and incorporated inputs in the final version of the FY16, PASET implemented the following activities, with strong governance study, and recommendations from the study support from the KWPFt: substantially informed the new PASET Charter and new governance structure. • A PASET mission to Korea in September 2015 to participate in a Joint Workshop for Promoting Korea-Africa • A PASET Regional Benchmarking Capacity Building Knowledge-based Development, which was conducted Workshop was held in Abuja, Nigeria in June 2016 during as a follow-up to the Regional Conference, “Africa’s which the participants disseminated and discussed Transformation: Leveraging the Partnership with Korea”. the utilization of results of the benchmarking exercise The PASET delegation, led by the Chairperson of PASET that took place in February 2016. Knowledge sharing Technical Executive Committee visited KDI, the University with partner countries and industries was conducted of Science and Technology (UST), Global Institute for through discussing the relevant best practices from Transferring Skills (GIFTS) and Korea Research Institute emerging economies, and university-industry linkages and for Vocational Education and Training (KRIVET) to learn university graduate employability with the appropriate and deepen knowledge of Korean experience in TVET and industry stakeholders. A representative from Korea’s Science and Technology, and to discuss potential areas of Ministry of Education and several university professors collaboration between SSA countries and Korea. shared knowledge and experience in panel sessions. On the sidelines of the workshop, technical discussions • In February 2016, the PASET delegation conducted a towards the signing of MOU and detailed agreements follow-up visit to Korea to further elaborate areas of between PASET and Korean universities (Seoul National collaboration between PASET and Korea. It is likely that University and Korea Advanced Institute for Science and this collaboration will be formalized in a MOU between Technology) were held. Discussions included potential several premier Korean institutions and PASET. forms of collaboration (such as curriculum development for a Ph.D. program, faculty training), technical issues • A skills needs assessment in priority sectors in different related to the execution of collaborative activities (such countries (that is, construction in Tanzania, agribusiness as the roles of Korean universities, design of program, in Rwanda, energy in Ethiopia, transport and logistics in financial arrangement) as well as the process and timeline Uganda) was undertaken with the aim of helping build the to finalize the MOU. knowledge base for further reflection and policy dialogue 38 | Annual Report 2016 Annual Report 2016 | 39 4. KOREA AND THE WORLD BANK GROUP: A PARTNERSHIP COMMITTED TO SHARING DEVELOPMENT EXPERIENCE One of the key contributions of the Facility is its ability to Security Agency (KISA), have been invited to participate effectively leverage Korean expertise and build on development in the Advisory Board. Under the Development of an ICT- experience of Korean institutions. Since the inception of the based creative economy through a global accelerator grant, Facility, the dialogue and collaboration between the WBG Samsung and other Korean private sector players, will and many Korea institutions has increased tremendously. As play an integral role by sharing their experience in the of June 30, 2016 every approved project under Windows 2 field of mobile applications development and green and 3 is engaging with at least one Korean institution. The growth. Furthermore, the Tiger hunts with Lions: Developing respective Korean institutions are engaged in a variety of Agricultural Market Information System and Decision ways. Some examples are as follows: Simulation System to empower small holder farmers and boost productivity grant is engaging KOICA Kampala office and • Within the Promoting effective use of ICTs in education is consulting with Korean experts in the agricultural sector and job creation through skills development in technical and and key IT representatives such as Korea Telecom. Under vocational education grant, the Korea Education & Research the recently approved23 Capacity-building for Innovative ICT- Information Service (KERIS) and Korea Research Institute based Land Management Systems, Korea was identified and for Vocational Education and Training (KRIVET) are key selected as the ideal partner and training site, given its partners in organizing the policymaker workshops and development trajectory and wealth of experience in the global symposium on ICT, including the setting of agendas land administration sector. Korea was able to establish and involving key Korean experts as presenters. its own advanced land management capacity in a short period of time owing to the development of a land • Korean ICT expertise is being leveraged for the key information system named the Korea Land Information activity under the Mobile Innovation Knowledge Network System (KLIS). Today, the KLIS is one of the two central grant, through: i) the extension of invitations to Korean pillars that buttress the e-government system, which is experts to share Korean best practices and experience; ii) recognized as a global leader. The Korean experience bringing partnership from the Korean private sector and of linking the KLIS to a world-class e-government will other stakeholders to MIN’s activities; and iii) showcasing raise the selected developing countries’ awareness and the expertise to the region through the MiHub platform. knowledge about other ICT models, modes and methods The Ministry of Science ICT and Future Planning (MSIP), for improving land administration services and creating through the Internet Industry Promotion Bureau of the further meaningful linkages that have wider development Internet Promotion Network of the Korean Internet and impacts. Approved in June 2016. 40 | Annual Report 2016 • Korean educational experience is utilized under the Partnership in Knowledge – Learning from Korean development • Korean institutions are playing key roles in the experience for a sustainable growth of Vietnam grant where implementation of the grant activities. For example, under the former Korean Minister of Education is participating the Nepal and Bangladesh: Municipal Capacity Building Pilot in key knowledge exchange events in Vietnam. The Initiative grant, the Korean Research Institute for Human Center for International Development (CID) of Korea Settlement (KRIHS) is co-managing the activities with Development Institute (KDI) is the focal point under the World Bank, including: i) co-sponsoring the national- the Developing Partnership between Korea and Africa for level knowledge exchanges; ii) reviewing and providing Human Resource and Skills Development in Applied Sciences, inputs to the manual/procedures for the capacity building Engineering and Technology (ASET) grant. CID is leading activities; iii) identifying suitable experts from Korea for the bilateral knowledge-sharing programs in ten African inclusion in the rosters of practitioners for the on-the- countries. These programs include “Cultivation of Highly job training events; iv) matching pilot municipalities with Capable Scientists and Engineers”, “Vocational Training suitable Korean cities for the twinning partnerships; and System for a Skilled Workforce” and “Internalization of v) co-producing and disseminating the idea briefs and Science and Technology in the Earlier Stage of Economic the knowledge exchange briefs. The Korean Supreme Development in Korea”. The recently approved24 Improving Prosecutor Office (KSPO) is also the key partner under Workforce Training in Europe and Central Asia grant aims the Combating Cybercrime: Tools and Capacity Building for to deepen the partnership between the Korea Research Emerging Economies grant and is expected to contribute Institute for Vocational Education and Training (KRIVET) expertise and know-how in collection and analysis of and the WBG through enhanced knowledge exchange. In digital/forensic evidence, investigation, prosecution and particular, the WBG is seeking to strengthen cooperation other law enforcement related activities on cybercrime, in the following areas of Korea’s expertise: i) provision of as the toolkit gets tested in pilot countries. The KSPO high quality workforce training that is aligned to labor has had considerable experience in providing training market demand, ii) effective management of labor market programs to developing countries for strengthening the information system (LMIS), and iii) implementation of the ICT infrastructure through legal and technical assistance, work-learning dual system. as well as in the area of generating cybercrime statistics, Approved in June 2016. Annual Report 2016 | 41 planning investigative strategies, facilitating international A full list of Korean institutions engaged in KWPF-funded cooperation and providing mutual legal assistance. activities is found in Box 2 below. Under the Collapse of Bank and Trade Finance during the Global Crisis: Did SMEs Suffer More grant, the research was Many of the trust-funded activities under Window 1 are also conducted jointly with economists in the Bank of Korea being delivered in collaboration with the relevant agencies in and two senior officials from the Bank of Korea served Korea. For example, the Korea Governance Partnership Facility as reviewers. In addition, the newly approved Global Cyber (GPF) has engaged the Anti-Corruption and Human Rights Security Capacity Building Program has been designed and Commission of Korea (ACRC), which is implementing some will be implemented in collaboration with the Korean of the activities related to the development of a national Internet and Security Agency (KISA),which is a recognized integrity assessment framework. Public Procurement Service global leader in the cyber security domain thanks to its (PPS) in Korea is supporting the “Open Contracting” initiative ‘hands-on’ practical experience and history of assistance in selected countries in Asia. On the IFC side, a new project provided to developing countries. on Global Trade Logistics was initiated by a major event in Korea, focused on trade logistics reform, organized in close • Finally, the Promoting Skills Development in the East Asia partnership with the Korean government (MOSF and MOTIE), Region grant is leveraging seven years of World Bank- Korea Customs Service and Korea International Trade Korea partnership experience in the fields of technical Association (KITA). The event also showcased Seoul-Incheon and vocational education and workforce development, airport where the Incheon AirPort Authority (particularly including co-sponsorship of the annual Global Human customs, express cargo, and logistics) exhibited Korean Resources Forum organized by the Ministry of Education, advanced trade facilitation measures. Science and Technology to deliver technical assistance, expert advice and regional learning exchanges. The program will build on the experience of HRD Korea and will also involve the Korea Research Institute for Vocational Education and Training (KRIVET) and the Korean Development Institute (KDI). Box 3: Korean Institutions Engaged under Activities supported by the KWPF Government Ministries and Agencies: Ministry of for Human Settlement (KRIHS); Korea Transport Science, ICT and Future planning; Ministry of Justice; Institute (KOTI);  Korea Land and Geospatial InformatiX Ministry of Security and Public Administration; Ministry Corporation (LX); National IT Industry Promotion Agency of Employment and Labor, Ministry of Education; Ministry (NIPA); Korean Supreme Prosecutor Office (KSPO); of Health and Welfare; Ministry of Land, Infrastructure Korean Institute of Criminology (KIP); Korean Internet and Transportation, Ministry of Agriculture, Food and and Security Agency (KISA); Korea Communications Rural Affairs; and Rural Development Agency. Commission (KCC); National Information Society Agency (NIA); Korea Information Society Development Institute Public institutions: Bank of Korea; Korea Development (KISDI); Institute (KDI); Korean Development Institute School (KDIS); KDI Center for International Development Seoul Metropolitan Government; Korea Trade Promotion (CID); Korea Education Development Institute (KEDI); Corporation (KOTRA); National Health Insurance Service Korea Education & Research Information Service (NHIS); Health Insurance Review and Assessment Service (KERIS); National Institute for Lifelong Learning (NILE); (HIRA); Rural Community Corporation; and Korea Water Korea Research Institute for Vocational Education and Resources Corporation (K-Water). Training (KRIVET); Human Resources Development Service of Korea (HRDKorea); Korea Institute of Science Private sector: Korea Telecom (KT); Samsung; SK and Technology (KIST); Korean Research Institute Telekom (SKT). 42 | Annual Report 2016 Annual Report 2016 | 43 5. KWPF: A PATH TO CONTINUED SUCCESS Over the last three years, the KWPF has played a critical role WBG and the donor, and critical to ensuring he smooth in sharing Korea’s development experiences with other WBG’s running of the Facility. The current arrangement of holding member countries through knowledge sharing initiatives, technical level discussions in Korea in July/August and promoting policy dialogue, and strengthening co-financing higher level consultations in October/November each year opportunities. The program has been flexible, demand-driven is proving to be an effective framework. and client-oriented, and adaptable to changing circumstances. 4. Improving channels of communications with regard to Window 1. The Secretariat is not currently included In order to ensure the Facility is employed in the most effective in communications between the donor and programs manner and achieves maximum impact in support of its key supported under Window 1, thereby limiting the Secretariat’s objectives, it is important to be aware of any challenges or areas ability to provide timely advice or play a facilitative role to of focus that are critical to the success of the Facility. Over these programs. the first three years of the Facility, ongoing dialogue and close 5. The importance of visibility. As many activities are collaboration between the WBG and the MOSF has resulted in approaching completion, it is paramount to establish and the Facility generally functioning very effectively. The Secretariat implement visibility guidelines for distribution to TTLs. A and the MOSF have identified the following areas as those that draft of these guidelines is in progress, and will be shared will require ongoing attention to ensure continued success: with the MOSF for comment in early FY17. 6. Dealing with high demand in the most efficient manner. 1. Need to demonstrate results in a meaningful way. While The unprecedented demand seen under the fourth call for the overall goal of the Facility is to contribute to poverty proposals has prompted the Secretariat to determine a more reduction through inclusive and sustainable economic growth, efficient and effective approach to managing each call, with demonstrating results achieved from a diversified set of the aim of ensuring that all task teams are best equipped to programs will be a critical factor in determining the success of submit high quality proposals in alignment with the objectives the Facility. As most programs are still in their early stages, it of the Facility. Steps that will be taken to offer the same is anticipated that aggregated results will not be meaningful level of guidance to task teams in a more efficient manner for another 18 months (March 2018). In the meantime, interim include: i) hosting group briefing sessions (rather than one- results will be monitored on an ongoing basis, and individual on-one meetings) ahead of each call for proposals to provide completion reports for each individual activity will also be tasks teams with all necessary information regarding the shared with the donor once projects are complete. key objectives of the Facility, eligibility criteria, priority areas, 2. Maintain a comprehensive understanding of donor and avoid any duplication etc.; and ii) adopt a structured and priorities. The Secretariat and MOSF now have a common methodical process to fully understand the needs and priorities and comprehensive understanding of the underlying donor of WBG Global Practices and regions well in advance so as to priorities; however, it will be critical to confirm priorities strengthen the link between donor’s priorities and operational prior to each call for proposals to ensure task teams needs. In addition, the Secretariat plans to introduce a are given highly effective guidance, and Concept Notes “seminar series” involving relevant stakeholders, inside and submitted are closely aligned with priority areas, and that outside the Bank, with the aim of increasing familiarity with the project selection process is transparent and explicable. the Facility, and of Korea’s depth of development expertise, 3. Periodic consultations. The holding of biannual through dissemination of results of KWPF-funded activities. consultations has been key to facilitating continuous communication and substantive engagement between the 44 | Annual Report 2016 Annual Report 2016 | 45 6. KWPF SURVEY: CLIENT FEEDBACK We believe that ‘client’ feedback is crucial to helping the Facility grow, develop and continually improve. As such, the KWPF Secretariat invited all task teams of KWPF- funded activities to participate in a survey, which included questions about what the Facility does best, and what improvements could be made. The survey was completed in September 2016, and the results will be discussed and analyzed over the coming months to help the Secretariat gain a sound and comprehensive understanding of any concerns or areas for improvement, and build on any strengths. Action plans will be determined and operationalized in FY17 in close collaboration with senior management within DFPTF, and MOSF. The responses received to date from the two main questions asked are summarized below. 46 | Annual Report 2016 QUESTION 1: “WHAT DO YOU CONSIDER TO BE THE ADDED- VALUE OF THE KWPF AS A FINANCING INSTRUMENT?” Task teams appreciated the KWPF for offering considerable value added to WBG operations, particularly through the opportunity to pilot new approaches that have the potential to be mainstreamed through regular lending projects. The Facility is viewed as being a “high innovative, far-reaching” vehicle through which a large number of developing countries are able to leverage and benefit from Korea’s development know- how. The close collaboration with Korean entities, and the sharing of the country’s development experience was repeatedly highlighted as extremely beneficial, and the level of expertise exhibited by Korean partners was recognized as world class. Some individual quotes include the following: “We strongly believe that KWPF’s continuous support in the “The KWPF represents a much welcomed source of financing future will be essential in order to further catalyze knowledge for policy relevant research, especially in an environment of sharing between Korea and sub-Saharan African countries.” dwindling resources at the disposal of researchers.” “While the Bank’s traditional business model is based on “The KWPF adds significant value in affording task teams the providing bilateral assistance to members, more and more of opportunity to pilot new approaches to the Bank projects (or Bank’s what those members demand in terms of technical assistance engagement with clients) with additional resources to mobilize and advice is not necessarily suited to the bilateral context. global experts. In doing so, it helps the Bank provide cutting- One of the principal advantages of the KWPF is that grants edge knowledge and valuable experience in the new merging area provided enable staff to address certain thematic issues in an of Smart Cities, such as Citizen Participation ICT System and in-depth and holistic way that would otherwise not be possible. innovative financing mechanisms for smart city projects.” The KWPF enables the Bank to enter new areas of in-demand “The KWPF definitely adds value in piloting new approaches for services, to pilot the results, and to provide more flexible ways of client’s needs with additional flexibility in working with world interacting in an operational-type setting with third parties that champions and experts. It provides resources for research and ultimately strengthens the outputs. Combatting cybercrime development in specific new topics in the ICT sector, such as is an increasingly important issue both for donor as well as cloud computing. It allows creation and in-country testing of developing countries. It is a thematic issue where global trends global public goods, such as the cloud computing toolkit. Thus, it and best practices need to be better understood by all in order to is an invaluable knowledge production tool for the ICT unit.” apply them to the specific capacity building context in a given country. Moreover, in the cybercrime project, we have been “The KWPF has been instrumental in the area of knowledge sharing able to join forces with a number of leading international and and capacity building for the Government of Vietnam, and in regional organizations, as well as leading NGOs working in this enabling the World Bank to facilitate “demand driven” knowledge area in a manner that the traditional bilateral context does not for clients by bringing practical know how to Vietnamese policy necessarily encourage or facilitate. The KWPF has been an ideal makers. The KWPF is a flexible window of funding for just-in- resource and framework to undertake this work, and we hope time knowledge exchange, sharing and peer learning initiatives that the Toolkit to develop Capacity to Combat Cybercrime will which often cannot be realized because the “conventional be a testament to that.” lending projects” of the Bank do not have any funding window to Annual Report 2016 | 47 support them, or if they can, it often takes a very long time to get taken on many valuable recommendations from the trip and even through the approval of budget and thus, losing the momentum or come with a proposal to set up an independent bodies (similar to forgotten by the time the budget is approved. PIMAC) to help the government of Vietnam with the appraisal of all public Investment Project. One actual example: the Government of Vietnam has just passed on the Public Investment Law and the Ministry of Planning and In summary, KWPF is a unique vehicle to enable demand driven Investment (MPI) of Vietnam was tasked with drafting the and just in time knowledge exchange and capacity building implementation circular guiding the implementation of such initiatives, which provide solutions for sustainable development law. The team who was given this task desperately need some results. In the case of Vietnam, it is also very valuable in helping practical experiences in the area of public Investment Project Vietnamese Government to get access to practical and relevant Appraisal, which serves as a critical part of the Circular. There development know-how of Korea as Vietnam starts to walk the was no readily available funding from any projects of the Bank steps that Korean has been through before. The partnership to support this task and luckily the KWPF came just in time. and relationship created through the KWPF funded program is Not only the TF could finance such an exchange, through the highly appreciated by both Vietnam and Korea as a true win-win counterpart with the KDIS (which was the main counterpart for example of collaboration.” the implementation of this KWPF grant), the TTL has managed to design a tailor made knowledge exchange between the PIMAC “The KWPF has offered considerable value added to the Bank of KDIS with the MPI task force of Vietnam to conduct a study operation in particular through generating new knowledge that tour to learn from Korea’s actual experiences in this area. The would boost the quality and stimulate new approaches within Vietnamese delegation, led by a Vice Minister of MPI has then the operation.” 48 | Annual Report 2016 QUESTION 2. “WHAT COULD THE KWPF DO BETTER OR DIFFERENTLY?” Task teams encouraged the Secretariat to streamline the grant application process, with a suggestion to place a limit on the time from submission to funding to 3 months as this would allow task teams to act within windows of opportunities in client countries that do not always last long. Task teams also suggested that the Secretariat work toward a more transparent and objective shortlisting process. It was also suggested that it would be beneficial for the Secretariat to introduce rolling applications, with streamlined procedures for and easier access to micro-grants. Task teams wished for more flexibility to allow for additional finance, or supplemental grant amounts, when needed. Furthermore, it was suggested that a knowledge sharing platform could be created, in order to ensure that generated institutional knowledge is reused from grant to grant and lessons, good practices and contacts are shared. Finally, task teams recommend a closer cooperation among related KWPF grants, as several of such grants have activities in the same countries and with the same Korean partners. Individual quotes included the following: “Streamlining the application process and also allowing for the tool, but were unable to deliver, as we did not have enough rolling applications would be very useful changes to the way the grant money left. Being able to apply for, and justify, additional KWPF is run.” finance would have been ideal in our case.” “The KWPF management team may want to review and make “It would be useful to have an advance notice of the annual GP’s internal shortlisting process more transparent and schedule of call for proposals so that task teams could be more objective. It is not clear who reviewed longlists and selected prepared and get ready when the call is out.” shortlists in each GP. The shortlist selection criteria are not open. This unclear shortlisting process may lead to selection of Over the coming months the Secretariat will explore further poorly planned projects over ones with better visibility.” opportunities for improvement, particularly with regard to streamlining of the grant application process. The Secretariat “In case additional demands for a knowledge product developed will continue to seek structured and comprehensive feedback by KWPF are identified, easier access to micro-grants would be from the task teams so that KWPF will is able to deliver a more beneficial to WB and clients. Also, it is not flexible enough results-oriented work program and such that the partnership to allow for additional finance. In the cloud computing toolkit between the Korean government and the WBG maintains its case, for example, we have received demand from Egypt and reputation as best practice. Kazakhstan to conduct in-country assessments and testing of   Annual Report 2016 | 49 ANNEXES 50 | Annual Report 2016 ANNEX1: KWPF BUDGET Replenishment discussions have taken place and the signing of US$6.2 million lower than the initial indicative allocation a Supplemental Agreement for US$ 90 million for FY17-19 will of US$16.0 million. The opposite is that case in Window 3, take place during the Annual Consultations in October 2016. where the approved funding amount exceeds the indicative allocation by US$14.8 million. KWPF allocations and commitments by Window as of June 30, 2016 are summarized in Table 8 below. The net result – an over-allocation of US$ 0.4 million – will be covered by the US$12.0 million held in “reserve”. The Secretariat As of June 30, 2016, funding provided through Window 1 will await confirmation from the MOSF as to how the remaining is US$ 8.2 million lower than the initial indicative funding balance of US$11.6 million should be allocated in FY17. amount of US$52.0 million, and funding for Window 2 is Table 10: Korea-World Bank Group Partnership Facility Budget FY14-16 FY14 FY15 FY16 Total Commitment Actuals Actuals Actuals Ratio (%) TF072055 Reserved "Reserved" 5.0 3.5 3.5 12.0 Window 1 (Pass Through) Indicative Allocation 10.0 21.0 21.0 52.0 Commitment (Signed AA) 9.7 12.7 21.4 43.8 84% Disbursement 7.5 11.7 14.4 33.6 Available for Commitment 0.3 8.3 (0.4) 8.2 TF072053 Window 2 (Project Co-financing) Indicative Allocation 4.0 6.0 6.0 16.0 Commitment (Approved by Donor) - 4.0 5.8 9.8 61% Disbursement - 0.5 3.8 4.3 Available for Commitment 4.0 2.0 0.2 6.2 Window 3 (Knowledge products) Indicative Allocation 2.0 4.0 4.0 10.0 Commitment (Approved by Donor) 1.7 4.0 19.2 24.8 248% Disbursement 2.2 4.4 5.1 11.6 Available for Commitment 0.3 0.0 (15.2) (14.8) Total Contributions Total Contribution Indicative Allocation 21.0 34.5 34.5 90.0 Commitment (Approved by Donor) 11.4 20.7 46.3 78.4 87% Disbursement 9.7 16.6 23.3 49.5 Available for Commitment 9.6 13.8 (11.8) 11.6 Annual Report 2016 | 51 ANNEX 2: KEY ACHIEVEMENTS UNDER WINDOW 1 TRUST FUND PROGRAMS WORLD BANK GROUP KOREA OFFICE and activities in other countries and; deepening of partnerships TRUST FUND with Korean institutions and experts. With the continued expansion, the WBG Korea Office currently hosts World Bank Background units – Country Management Unit (CMU), Leadership Learning and Innovation (LLI), Finance and Markets Global Practice, The Administration Agreement of the World Bank Group and Education Global Practice – as well as IFC and MIGA. Korea Office TF was signed by the parties in July 2014. The Since its establishment, the office has endeavored to help principal objective of the WBG Korea Office is to deepen countries address their development challenges by sharing the partnership between the Korean Government, Korean global knowledge on development, promoting private sector stakeholders and the WBG. The strengthened partnership engagement, and building strong partnership with Korean as will support efforts of both parties to become more effective well as global stakeholders. development partners for countries across the world. The Korea Office continued to expand and deepen concrete Through its two offices in Washington, D.C. and Songdo, partnerships with Korean institutions and experts, as well as Korea, the TF supports a broad range of development those of developing countries. FY16 operations focused on partnership opportunities with a focus on promoting best strategic expansion of work program and office staff capacity practices, by leveraging the WBG’s knowledge and convening development – aimed at leveraging Korea’s development story power and Korea’s expertise in areas such as economic and collaborating with local and international institutions development policy, information communications technology, for tangible development impact. In FY16, the Korea Office infrastructure and the financial sector. Korea’s experience in devised products to raise awareness of Korea’s development sustainable development, providing infrastructure and better story and promoted business development with Korean services to improve the lives of the people, and its transition partners through IFC’s and MIGA’s investment and through to a dynamic knowledge economy, provides lessons that are knowledge sharing events with Korean business, including the benefitting many other developing countries. In addition to Business Opportunities with the WBG Workshop. In addition, the WBG’s IBRD and IDA, the WBG office also represents the the Korea Office has enhanced cooperation among Korean International Financial Corporation (IFC) and the Multilateral institutions and global stakeholders including agencies in Investment Guarantee Agency (MIGA), the private sector developing countries, and WBG GPs/Cross Cutting Solution arms of the WBG. Areas (CCSAs) and various country and operational teams. Moving forward, FY17 operations will be based on the Key highlights and results achievements and lessons from FY16. The office will also continue to strive to translate the Operational Hub vision In its two fiscal years, the WBG office has seen a growth into reality and make Korea’s development experience of: number of staffs including Global Practices (GPs) staff; relevant to client countries and WBG internal units, ultimately operations and their linkages to World Bank Group operations contributing to achieving the twin goals of the WBG. 52 | Annual Report 2016 KOREA GOVERNANCE PARTNERSHIP for the government, and better goods, works, and services FACILITY (GPF) TRUST FUND for citizens. The project began only recently in October 2014 with a regional kick-off meeting and is being undertaken with Background the Korean Public Procurement Service, which has a long history of excellence in disclosure and transparency in public The Korea Governance Partnership Facility (GPF) is a $3 million contracting, and has recently endorsed the Open Contracting Single Donor Trust Fund (STDF) created with the objective to Global Principles and is committed to supporting the support governance activities in Asia through collaboration implementation of Open Contracting in the Asian region. The between the World Bank with relevant agencies in Korea. At partners are undertaking outreach to the important project the moment three activities have started implementation: partners in Vietnam, Indonesia, Turkey, and Mongolia and a) development of integrity and anti-corruption systems in the UN project on governance. They have also secured buy- Asia, undertaken by the WB’s Governance Global Practice in in from the different relevant WBG procurement managers collaboration with the Anti-Corruption and Human Rights for this project and began to develop the Open Contracting Commission of Korea (ACRC); b) support to Open Contracting, Readiness Assessment methodology, including a diagnostic undertaken by the Governance GP in collaboration with the tool to evaluate the procurement system of a country or an Public Procurement Service (PPS) in Korea; and c) Governance agency against the Open Contracting principles. Partnership Facility program in Mongolia, undertaken by the Macro and Fiscal GP and the WB Country Office in Mongolia, Component c): The overall project development objective in collaboration with Korean development experts in Mongolia. of this grant is to help enhance the management of the A fourth component, to develop governance and management mining-led economic growth toward a more sustainable, systems for State Owned Enterprises in Asia, is under accountable and effective way in Mongolia. This grant preparation. activity consists of three main complementing components: i) targeted technical assistance and ESW work of the WB Key highlights and results country team on economic policies and governance issues focused on the management of mining-dependent economy, Component a): The development objective of this initiative is based on the needs and priority of the client; ii) providing to design and pilot a national integrity assessment framework support to policy outreach forums and capacity building of based on the existing approaches. The initial output of the the Government; iii) enhancing Mongolia’s policy analysis initiative is to analyze the effectiveness of existing integrity- capacity through strengthening the capacity of the Economic related capacity-building programs and tools, including those Research Institute (ERI), Mongolia’s first independent think implemented or supported by the ACRC, the World Bank tank that was established with the support of the original Country-Specific Diagnostic Assessment, and Transparency GPF grant. Currently, the team is supporting an ESW work International National Integrity System (NIS) Assessment. on the assessment of fiscal risks stemming from the SOEs As part of this work, the WB team, in collaboration with in Mongolia, a study tour on debt management system in the ACRC, designed a session during the Promoting Transparency, wake of rising public debt, and policy outreach events on the Accountability and Participation: the Role of Check and new Glass Account Law that will strengthen the transparency Balance Institutions conference at OECD MENA Training and accountability of the public sector by enforcing all public Center in 2014. The workshop aimed to provide policy makers, entities to regularly disclose their financial and economic government officials and donor representatives with a deeper performance. understanding of how transparency, accountability and participation can be integrated for the government institutions KNOWLEDGE FOR CHANGE PROGRAM to function more effectively. In this context, the ACRC team (KCP), POVERTY DYNAMICS AND PUBLIC discussed challenges associated with the implementation of SERVICE DELIVERY TRUST FUND ACRC’s anti-corruption policies and tools. As a next step, WB and ACRC are working together to create and implement the Background proposed Integrity Assessment Tool, including data collection and peer review of the first draft of the framework. The KCP serves as an effective, transparent and efficient vehicle for the pooling of intellectual and financial resources Component b): The development objective of this initiative is for data collection and research supporting poverty reduction to increase disclosure and participation in public contracting and sustainable development. It encourages and facilitates (“open contracting”) on an agency level in selected (two the WB’s dialogue with partner agencies, developing country priority) countries in Asia in order to create a more level clients, and other interested parties. The main objective is to playing field for the private sector, better value for money provide cutting edge research in the development economics, Annual Report 2016 | 53 create new knowledge to assist the formulation of better Table 11: KCP II Outputs in FY15 policies with greater impact on poverty. A subsidiary objective Journal Working Data Set Research is to assist data collection and develop research capacity in Article Paper Tool the Bank’s client countries. Korea contributed $1.5 million Window I 5 15 7 0 to the Poverty Dynamics and Public Service Delivery Trust Window II 10 21 11 5 Fund, with preference for the support of WDR 2015: Mind Window III 3 24 138 26 and Society—How a Better Understanding of Human Behavior Window IV 5 52 16 10 Can Improve Development Policy and research on job creation in low-income countries. Total 23 112 172 41 Developing country researchers 575 Key highlights and results substantively engaged Developing country institutions 199 KCP II was originally scheduled to end on April 30, 2016; substantively engaged however, all the donors recently agreed to a no-cost extension through June 30, 2017. IFC KOREA COMPREHENSIVE The KCP II has received contributions of $31.4 million, and the TRUST FUND funding has fully allocated to 176 projects. The last batch of new projects for KCP II were approved in June 2014, and they Background are on track to be operationally completed by February 2017 and disbursed by June 2017. There are 21 ongoing projects in The Korea Comprehensive Trust Fund (KCTF) was set up different stages of implementation and the progress reports in April 2011 with an initial contribution of US$1.5 million prepared by the task team leaders are available on the KCP to support IFC’s advisory services operations in the private website. Thirty-five projects were completed and one was sector. The objective of the KCTF is to assist specific projects dropped in FY2016. Outputs include high-quality papers, and programs in the areas of financial inclusion, SME finance, databases, data sets, and research tools covering a broad ICT, investment climate and trade facilitation. In 2014, Korea range of development topics and issues. contributed an additional US$3.0 million to this trust fund. The KCTF functions as an umbrella fund with a focus on the The KCP III was operational since December 2014, which is Technical Assistance Trust Fund, the SME Finance Forum, and set up with a more flexible structure. The KCP III presently other ad-hoc projects. has seven donors, namely, Norway, Estonia, Canada, the United Kingdom, Canada, France and Finland. The KCP III will The Korea-IFC partnership supports activities that are continue aiming to contribute to policy making in developing country-specific, regional, or global in nature and support countries through research efforts. To make research specific sectors that benefit developing countries, including – operational relevant, the KCP III research will collaborate inter alia – green growth, financial inclusion, ICT, and trade with Bank’s operations. It will focus on applied and policy finance. The KCTF supports select projects that focus on a oriented questions, which will support government officials variety of activities such as creating a platform for peer-to- with policy making guidance and contribute to understanding peer learning and exchange with practitioners from Korea, development issues in developing countries. helping recipients through training and capacity building, and providing specific advice to improve investment climate and In addition to this, it will also enhance research and data regulatory reform. There have been seven projects that were collection capacity in developing countries. The KCP III will approved under KCTF, of which three have been operationally encourage the Bank teams to work with researchers and completed. At this time, all KCTF funding has been fully data specialists from developing countries with the aim of allocated to projects and a replenishment of the trust fund improving research and data collection capacity. is necessary to continue the fruitful cooperation between IFC and Korea. Table 11 below summarizes KCP II outputs for FY15 (FY16 outputs will be available in late 2016). 54 | Annual Report 2016 Key highlights and results as to create a fully integrated offer for the client companies. The program conducted a Better Work Business Forum in The Global Trade Logistics Program, approved by MOSF Seoul (April 2016) to discuss how Better Work can improve its in May 2014, has moved into the pilot project phase aimed operations and services to better meet manufacturers’ needs at understanding and quantifying government policies, and interests. regulations, and market distortions that impact agricultural goods trade logistics with respect to time and cost. The two The Nepal SME Financing program supports financial pilot projects measured trade logistics costs associated with institutions in Nepal to strengthen their capacity in SME trade in agricultural goods in Ethiopia and Zambia – countries Banking and Risk Management through sectoral training where the transfer of perishable goods is a critical concern. programs and tailored advisory services for select banks. The They highlighted the implications of border related delays program planned to organize a Risk Management Training and emphasized the potential for efficiency improvements in 2015. However, the training could not be conducted as along the supply chain. These findings will be incorporated planned due to political instability in the country after the into other IFC technical assistance projects that are ongoing promulgation of the Constitution and the aftershocks of the in these countries. devastating earthquake of April and May 2015. Considering the fragile situation in the country, missions to Nepal were The Inclusive Business Development project aims to provide also restricted by the Nepal WBG Office during this time. a practical knowledge base to help private sector companies As such, the planned Risk Management Training has been adopt inclusive business models. This includes, among postponed to 2016. others, Korean companies that provide income generation opportunities and/or affordable goods and service to those The goal of the Green Housing and Energy Efficiency living at the base of the economic pyramid (BOP). As part Initiative is topromote and develop sustainable private of the project, IFC conducted a pre-landscaping exercise investments in energy efficiency (EE) in the residential on Inclusive Business and Creating Shared Value (CSV) in sector by developing Green Housing Finance products and South Korea in 2015, which encompassed a literature review facilitating partnerships among the lenders and developers. and a number of meetings with several private companies, As part of this initiative, the Global Green Housing Finance government officials, and a research institute. IFC then Toolkit (GGHFT) and Global Residential Energy Efficiency commissioned Ernst & Young Han Young (E&Y Korea) and the Calculator (GREEC) be used by market stakeholders have been Institute for Industrial Policy Studies (IPS) for the study aimed prepared and submitted for the review by IFC. These tools will at identifying potential areas for strengthening the support help promote and develop sustainable private investments in mechanism for the development of CSV/IB by the Korean energy efficiency in the residential sector. public sector and IFC, as well as identifying opportunities for IFC to engage with Korean companies interested in The SME Finance Forum seeks to advance access to implementing the inclusive business models. finance for SMEs by providing standardized benchmarks and dissemination of researches, data and information on The Lao Licensing reform project continues to work with the critical issues related the industry. A Global Membership government of Lao to develop and reform the business enabling Network was launched within the framework of the Forum in environment in the country. In October 2015, an MOU was November 2015. Activities undertaken by the Global Network, signed between IFC and the Lao Securities Commission Office along with various online exchanges convened by the Forum in to conduct a countrywide corporate governance assessment 2015, effectively foster peer learning and knowledge exchange to identify gaps and challenges in Lao’s regulatory framework. among various global institutions interested in promoting The assessment will inform an action plan leading to the SME finance. With the launch of the Global Network, the development of a corporate governance code to establish SME Finance Forum has further strengthened its capacity to good practice standards with which Lao companies would be advance public-private dialogue around small business finance. required to comply. Currently, about 100 financial institutions from around the globe have already committed to membership with the SME The Better Work Program in Vietnam brings together the Finance Forum including the Korea Credit Guarantee Fund private sector, government, and workers’ and employers’ (KODIT) and the Industrial Bank of Korea (IBK).In January organizations to collectively transform the apparel industry 2016, the Forum has visited Seoul in order to expand its in Vietnam. With the support of the government of Korea, outreach to potential member institutions. During the visit, IFC focuses its operational program on the development and the Forum had meaningful discussion with commercial banks roll out of environmental and associated advisory tools with and financial institutions, including Kookmin Bank, Woori client companies in Bangladesh, Indonesia and Vietnam so Bank, Korea Exim Bank, ShinHan Bank, Korea Development Annual Report 2016 | 55 Bank, NICE Information, Korea Federation of Banks, Ksure, Key highlights and results and KOTEC. In addition, the Forum also visited the Fintech Center in Pan-gyo and Poppay, a payment solution “fintech”, The Korea-LLI Global Program has been marked by continued to discuss potential ways to cooperate as partners in sharing progress and successful accomplishments. Throughout knowledge and exchanging information related to fintech FY16, the Global Program accomplished a number of major industry. milestones. The knowledge management capacity building work (Organizational Knowledge Sharing) is being successfully A joint WB/ IFC initiative Private Sector Participation for implemented across the world, in Argentina, Colombia, Ethiopia, Health in India (PPHI) was approved in September 2015. India, Indonesia, Kenya, Nigeria, Senegal, and Uganda. The The goal of the initiative is to enable the central and state third High-Level Meeting on Country-led Knowledge Sharing, governments in India attain their health sector policy goals by held in Washington, DC, in March presented an important leveraging India’s vibrant private health sector. Uttar Pradesh landmark to showcase institutional capacity development (UP), India’s largest state with a population of 205 million, to systematically capture and replicate innovations and was identified as the first state for the implementation of solutions as an area of public sector development. this initiative. Consequently, a trilateral Memorandum of Understanding (MoU) was signed on April 14, 2015 between In January 2016, World Bank Group (WBG) President Jim the World Bank, IFC and the Government of Uttar Pradesh Yong Kim globally launched the Open Learning Campus (GoUP) to facilitate the implementation of the PPHI program. (OLC) and revitalized the revolution in development learning Under the aegis of the PPHI Program in UP, IFC will advise at a high level live event in Washington DC, which was also the Government of Uttar Pradesh (GoUP) in designing and attended by a virtual audience of about 75,000 people. implementing three large scale Health Projects under the Public The OLC, which is co-branded as a joint WBG-Korea MOSF Private Partnership mode. Of the three projects implemented platform, has reached over 350,000 participants globally by IFC under this program, one project - Creation of Low-cost via various e-courses and just-in-time e-learning products. hospitals and Accident/ Emergency services in the state on Since the January 2016 launch, over 1.9 million learners a PPP basis (Low-cost Hospitals Project) – received funding have visited the OLC portal, demonstrating the OLC as a support from the Korea-IFC Comprehensive Trust Fund. global learning destination for international development. To build upon Korea’s experience in development learning, WBI/LLI GLOBAL KNOWLEDGE SHARING and acknowledge the Korean Government’s technical and PROGRAM SDTF financial contributions, the OLC was launched in June 2016 in Seoul, Korea. The World Bank has partnered with KDI Background to develop a new Massive Open Online Course (MOOC) on Korea’s economic development, representing the World Bank’s For decades, Korea’s partnership on the global knowledge first MOOC focusing exclusively on one country’s successful management agenda has been extremely valuable for the development experience. The Korea MOOC is planned for World Bank and its country clients. The Korea-LLI Global launch in November 2016 and expected to reach 20,000 Program represents the most advanced stage of the longest to 30,000 participants globally. At the prior suggestion of standing successful partnership between Korea and the World MOSF, high value blended learning workshops were newly Bank, which has expanded and continued for over 60 years. introduced and successfully delivered in Seoul, Korea, to 65 The first Korea-World Bank collaboration was through the delegates from 20 countries, in partnership with the Korea Economic Development Institute (EDI; predecessor to WBI, LLI, Research Institute for Human Settlement (KRIHS), Korea and GOKMU) in 1955. Environmental Industry and Technology Institute (KEITI), and World Bank Global Practices. Korea and the World Bank continue to deepen its partnership in areas of common strategic interests, including through the $18 million Korea-WBI Global Knowledge Sharing Program. Established in 2013, the Program aims to scale-up global knowledge sharing (Component I) and e-learning platforms (Component II), focusing on urgent challenges to accelerate inclusive growth and sustainable development, including topics such has fiscal, social and industrial polices. 56 | Annual Report 2016 PUBLIC EXPENDITURE MANAGEMENT An independent evaluation conducted in early 2016 NETWORK IN ASIA (PEMNA) MULTI- concluded that PEMNA has achieved its strategic objective by DONOR TRUST FUND successfully institutionalizing its governance framework and forming a very strong peer-learning network with a strong Background sense of ownership. Established in 2012, the PEMNA MDTF provides financing Beyond operationalization of the PFM peer-learning platform for member-driven peer-learning platform in East Asia and and organization of face-to-face meetings, PEMNA started Pacific (EAP) region. The objective of PEMNA MDTF is to to generate results that impacted the decision making of support sustainable operation of public financial management member countries’ budget and treasury policy, either directly (PFM) peer-learning network among member countries in or indirectly. Some examples of key results are as follows: EAP. PEMNA provides a unique forum for public officials to share their knowledge to build stronger national budget • In June 2016, officials from the General Department of and treasury systems. By learning from other countries’ Budget in Cambodia Ministry of Economy and Finance experience, members contribute to their governments’ policies (MEF) visited their counterparts in the Thailand Ministry in managing public resources more efficiently and effectively. of Finance to review the implementation of the program PEMNA established and operates with a Steering Committee, budgeting. Cambodia MEF officials presented the results two Communities of Practice (CoP) in budget and treasury, of their visit in a forum with other stakeholders; ideas and two CoP leadership teams. The Korea Institute of Public and lessons from the visit is expected to be considered as Finance (KIPF) administers a PEMNA Secretariat. Current the General Department of Budget updates their Budget member countries include Brunei, Cambodia, China, Indonesia, Systems strategy 2017-2025. Korea, Laos, Malaysia, Mongolia, Myanmar, the Philippines, Singapore, Thailand, Timor-Leste, and Vietnam. • In November 2015, the Indonesia Ministry of Finance organized an international conference on financial Key highlights and results management information systems (FMIS) and invited the Vietnam MoF officials to be the speaker sharing In line with the “member-driven” principle, PEMNA established the Vietnamese’s FMIS implementation experiences. its governance structure and organized various peer- Indonesia MoF learned important lessons of post-FMIS learning activities. In FY16, PEMNA organized four individual implementation, particularly how to self-build the capacity Communities of Practice (CoPs) meetings and a plenary and manage the system once the project is completed. conferences hosted by the government of the Philippines (2016). PEMNA also organized four study visits as a new Table 12: PEMNA FY16 Meetings method of peer-learning. Through these activities, which are Date Meeting Location listed in Table 9 below, PEMNA members actively engaged October 2015 B-CoP and T-CoP Manila, the with other country members and exchanged their budget and Study Visit Philippines treasury practices and challenges faced. All activities were November 2015 Performance Bangkok, Thailand planned and executed by the PEMNA members with extensive Budgeting Reforms support from the PEMNA Secretariat. and Indicators to Monitor PEMNA member countries demonstrated their strong December 2015 Managing Change in Seoul, Korea FMIS Reforms ownership to the network. Since the launch, Korea’s Ministry of Strategy and Finance (MOSF) has been the largest donor February 2016 B-CoP and T-CoP Sejong, Korea Study Visit to the PEMNA MDTF. In 2015, the Philippines Department and Budget Management (DBM) contributed the MDTF, March 2016 Treasury-Central Bangkok, Thailand Bank Relations and in 2016, Vietnam and Timor-Leste pledged financial (T-CoP) contributions. In addition, Malaysia, Myanmar, the Philippines, April 2016 PFM Reform, MTEF Phnom Penh, Thailand, Korea, and Cambodia hosted PEMNA meetings and/ (B-CoP) Cambodia or study visits and provided significant in-kind contributions June 2016 Plenary Conference Manila, the to operationalize the member-driven peer-learning network. Philippines Annual Report 2016 | 57 GLOBAL FACILITY ON GROWTH FOR of renowned international and local experts as members, the DEVELOPMENT (GFGD) commission will be a platform to assist in designing a growth strategy that is broad-based, inclusive and sustainable, and Background share knowledge and good practices based on successful international experiences. Paraguayans have sought The Global Facility on Growth for Development (GFGD) assistance from GFGD to learn from the experience of Korea’s is a knowledge initiative of the Macroeconomics & Fiscal growth and development strategy. Management Global Practice to promote economic growth and development. A three-year World Bank Group (WBG) A GFGD project in Bosnia and Herzegovina is looking at facility supplemented by the Korean Trust Fund, GFGD creates, how to assist the government in managing arrears of public curates and shares knowledge and best practice lessons enterprises and in the process, increase the transparency and globally; and provides assistance to developing economies quality of fiscal management. The project will help inform the through projects and advisory work. design of policy measures to clear the outstanding stock of arrears and limit the future accumulation. Korean expertise Korea has been a very successful case in promoting strong, has been sought to share lessons of successful public finance sustainable and inclusive growth. One key objective of management reforms in such a context. the GFGD facility is to share Korea’s successful growth and development experience into the analysis, design, and Another GFGD project is assisting Bangladesh, Nepal and implementation of the selected World Bank projects. In late Zambia to adopt a method to analyze long term growth using 2015, GFGD selected ten projects including lending activities, a simple model of savings, investment and productivity. The analytical and advisory work and knowledge sharing events. process analyzes the feasibility of long run growth rates in the face of existing macroeconomic constraints in the country Key highlights and results and suggests ways to address them. The improvement and development of information and communication technology The first GFGD knowledge sharing activity was a two-day solutions in Bhutan is being supported by GFGD; Korean conference on Inclusive Growth for Shared Prosperity in May successful lessons in e-governance will be a major part of 2016 in Washington, DC. The conference was conceived to learning for the Bhutanese. Korean expertise and experience foster a productive debate, and bring new evidence based are also being used in GFGD projects in Kazakhstan and a few ideas to the table. Academics, former policymakers, and countries in Africa. colleagues from World Bank and other development agencies gathered in to discuss and analyze the concepts of inclusive In implementing GFGD, a knowledge partnership with the growth and shared prosperity, and to identify policies that Korea Development Institute (KDI) was initiated with a view can successfully promote them. A conference booklet that to strengthen knowledge sharing between WBG and Korea. documents key takeaways is under preparation and will be KDI, the premier think-tank institution of Korea, was recruited available online. to provide project partnership to GFGD. The idea was to have experts from Korean think-tank organizations, academic The development of a fiscal sustainability analysis tool that institutions and the private sector working together side-by- accounts for fiscal risks from contingent liabilities, is underway side with WBG teams in providing assistance in projects in as part of another GFGD global knowledge activity. The developing countries. creation of toolkit will be informed by lessons from Korea’s successful experience and other cross-country practices. The first phase of GFGD projects supported by the Korean Trust Fund is in full swing. Most of them would be completed in GFGD is also supporting several country specific activities. A 2016. A new round of project funding is planned in late 2016.  project in Paraguay involves assisting the country in setting up an international commission for growth. With a number 58 | Annual Report 2016 ANNEX 3: KWPF IN NUMBERS The program funded by the KWPF is well diversified, by region and sector. The composition of activities under Windows 2 and 3 as of June 30, 2016 is shown in charts 8 and 9 below. Chart 8: KWPF-funded Projects and Activities by Sector 8 US$8.0 Window 2   7 Window 3 6 5 US$4.8 US$5.7 US$5.3 US$ millions 4 US$2.9 3 US$2.9 2 US$1.8 US$0.4 1 US$0.3 US$0.3 US$1.2 US$1.1 0 Inform tion A riculture Educ tion He lth, Soci l Soci l, Knowled e, Public IFC: Ener nd Nutrition Protection Urb n, Le rnin Adminis Priv te nd Communic tion nd Rur l nd tr tion Sector Extr ctives Technolo (ICT) Popul tion Development Innov tion Development Chart 9: KWPF-funded Projects and Activities by Region 10 Window 2 9 US$9.7 Window 3 8 7 6 US$ millions US$5.1 5 US$5.6 US$5.0 4 US$2.9 3 2 US$1.8 1 US$1.1 US$1.7 US$1.4 US$0.3 0 Afric Glob l E st Asi , South Asi Europe nd L tin Middle P cific Centr l Americ E st nd Asi nd the North Afric C rribe n Annual Report 2016 | 59 Chart 10: Window 2 by Sector Chart 11: Window 2 by Region US millions US millions 3% 19% 18% 49% 52% A riculture US$4.8 Afric US$5.1 Soci l Protection US$2.9 South Asi US Soci l , Urb n, Rur l Development US$1.8 Europe nd C Priv te Sector (IFC) US$0.3 39% 30% 19% 49% 52% A riculture US$4.8 Afric US$5.1 Soci l Protection US$2.9 South Asi US$2.9 Soci l , Urb n, Rur l Development US$1.8 Europe nd Centr l Asi US$1.8 Priv te Sector (IFC) US$0.3 Chart 12: Window 3 by Sector 30% US millions 2% 1% 4% Ener nd Extr ctives US$0.3 5% IFC: Priv te Sector Development US$0.4 32% Public Administr tion US$1.1 Knowled e, Le rnin nd Innov tion US$1.2 21% He lth, Nutrition nd Popul tion US$5.3 Educ tion US$5.7 A riculture US$2.9 Inform tion nd Communic tion 12% Technolo (ICT) US$8.0 23% 60 | Annual Report 2016 Chart 13: Window 3 by Region US millions 6% 1% 7% 20% Afric US$5.0 5% Glob l US$9.7 E st Asi , P cific US$5.6 South Asi US$1.1 Europe nd Centr l Asi US$1.7 22% L tin Americ nd the C rribe n US$1.4 Middle E st nd North Afric US$0.3 39% Chart 14: Trends in Applications and Approvals in Window 2 6 50 Concept Notes Approved (RHS) 5 40 Concept Notes 4 Received (RHS) Number of CNs 30 US$ millions 3 Tot l Gr nt Amount (LHS) 20 2 10 1 0 0 First C ll Second C ll Third C ll for Fourth C ll for for Propos ls for Propos ls Propos ls Propos ls Annual Report 2016 | 61 Chart 15: Trends in Applications and Approvals in Window 3 12 120 Propos ls Approved 10 Propos ls Received 100 Tot l Gr nt Amount (LHS) 8 80 Number of CNs US$ millions 6 60 4 40 2 20 0 0 First C ll for Propos ls Second C ll for Propos ls Third C ll for Propos ls Fourth C ll for Propos ls 62 | Annual Report 2016 ANNEX 4: FY16 WINDOW 3 PRIORITY AREAS EDUCATION (VOCATIONAL TRAINING) • Vocational Education and Training (TVET) Centers. The main purpose of establishing TVET centers is to supply The KWPF focuses on vocational training on the basis that excellent skilled technicians most relevant to the industries skills development lies at the core of improving development of the economies of the recipient countries. To achieve outcomes (employment, earnings and prosperity) as well as this goal, KWPF supports a range of activities including: i) increasing productivity and growth. Limited access to relevant preparing physical space for training; ii) establishing strong skills training results in differences in development outcomes. relationships with industries; iii) developing curriculum and As such, it is important to understand the respective roles and educational materials; and iv) training instructors, teachers relative importance of education and skills in generating the and managerial staff. right development outcomes. Korea has a comparably well- functioning Technical and Vocational Education and Training AGRICULTURE (TVET) system, particularly in manufacturing, which provided the grounding for Korea’s rapid economic growth. Skills Agricultural development is one of the most powerful tools development is closely correlated to industrialization and in to end extreme poverty, boost shared prosperity and feed many cases, industrial development has been the catalyst 9 billion people by 2050. Growth in the agriculture sector for an advance in vocational training systems, and in turn, is approximately two to four times more effective in raising skills development contributed to deepening industrialization. incomes among the poorest relative to other sectors. This is Tertiary and secondary education is not a key focus area important for 78% of the world’s poor who live in rural areas within the KWPF. and whose livelihood is dependent on farming. Agriculture is also crucial to economic growth: it accounts for one-third Activities supported by KWPF fall under the following focus of GDP and three-quarters of employment in Sub-Saharan areas: Africa. Agriculture-driven growth, poverty reduction, and food security are at risk, however, as a warming climate could cut • Skills development systems. KWPF supports the crop yields by more than 25%. Agriculture and land use change establishment, or improvement, of skills and/or higher are responsible for 19–29% of global greenhouse gas emissions, education systems (focusing on applied sciences, and mitigation in the agriculture sector is part of the solution engineering and technologies) through the diagnostic to climate change. Reflecting these circumstances, the Bank assessment of skills demand, governance, quality has established 4 priorities: i) climate smart agriculture; ii) assurance, and financing mechanisms. As a first step, a agricultural employment and rural livelihoods; iii) food supply skills assessment would be performed to determine the and quality; and iv) value chains and agribusiness. skill demand and supply for economic sectors considered to have growth potential, as well as skill constraints. KWPF Korea has ample experience in agricultural development with also supports activities that aim to: i) assist developing agriculture being the largest industry in Korea throughout countries in the formulation of skills (and related the 1950’s and 1960’s, and food shortages being prominent industrial policies); and ii) establish a national qualification following the Korean War. Korean efforts to increase food framework and national competency standard. production were focused on the construction of agricultural infrastructure and development of technologies. Annual Report 2016 | 63 The KWPF’s agricultural priorities are aligned with those (SDGs), which will guide the post-2015 development agenda. of the Bank and comprise of the following: i) infrastructure SDG #3 includes a target to “achieve universal health coverage (e.g. irrigation and mechanization) and technology transfer (UHC), including financial risk protection, access to quality essential (e.g. crop improvement, information and training centers); health care services, and access to safe, effective, quality, and ii) climate smart agriculture; iii) agribusiness; and iv) rural affordable essential medicines and vaccines for all.” More than livelihoods. 30 middle-income countries are implementing programs with the aim of achieving UHC, and many more low- and middle- Activities supported by KWPF fall under the following focus income countries are considering launching similar programs. areas: Korea has exhibited best practice since the launch of its own UHC system in 1989,just 12 years after the launch of the • Infrastructure and technology transfer. KWPF supports National Health Insurance (NHI) scheme in 1977, representing activities related to increasing agricultural productivity a landmark in global health system history. Major health through development of infrastructure and technology reforms have been adopted with the aim of ensuring efficient (software rather than hardware). Activities include, but and equitable delivery of services. Korea is a global leader are not limited to, the improvement of irrigation facilities, in managing CRVS and national ID systems, which provide farmlands, greenhouses, barns for livestock, equipment a foundation for UHC, and are effectively integrated into for cultivation and fisheries, seeds and fertilizers, Korea’s health information system. mechanization, and increased skills training in the operation of such equipment and infrastructure. Activities supported by KWPF fall under the following focus areas: • Agribusiness. Agribusiness includes agrichemicals, breeding, crop production, distribution, farm machinery, • Universal Health Coverage (UHC). KWPF supports processing, and seed supply, as well as marketing and retail activities related to designing, establishing and operating sale. KWPF aims to support activities related to income- NHI schemes. The focus of supported activities could generation for rural households through merchandising include: i) the incremental expansion of population agricultural products, such as marketing and sales of coverage, family-based membership for the informal sector crops, livestock and marine products. and uniform payment system to medical providers; ii) development of data management and health information • Climate Smart Agriculture. KWPF supports activities systems to improve transparency and accountabilities; that aim to improve agricultural productivity in an and iii) building capacity to operate these systems. environmentally friendly manner. • Civil Registration and Vital Statistics (CRVS). CRVS HEALTH and national ID systems are important foundations for UHC. Activities supported under this area would the Within the health sector, KWPF is focused on Universal Health issuance and management of unique identification for Coverage (UHC) and Civil Registration and Vital Statistics each individual from birth to death. These activities would (CRVS). Areas such as activities to fight diseases, such as enhance people’s welfare through resident registration, malaria and HIV/AIDS, are not the focus of the Facility which would contribute to maintaining order in society since they are covered by other large multi-donor trust fund and addressing administrative needs such as childcare programs. Universal health coverage (UHC) aims to: i) provide benefits and primary school enrollment. Supported people with access to health care without imposing financial activities could include the development of ICT systems hardship; and ii) achieve better health and development as well as capacity building initiatives relating to the outcomes in line with the Sustainable Development Goals ongoing management of CRVS. 64 | Annual Report 2016 ANNEX 5: RESULTS FRAMEWORK TRUSTEE LEVEL: • Over-arching Development Objective and Expected Impact of Partnership Facility: To contribute to poverty reduction through inclusive and sustainable economic growth in low and lower-middle income countries. • Higher-Level Indicators for the overall Facility: (I) Positive changes in beneficiary countries’ policies, laws and regulations that promote sustainable economic growth and are attributable to the Facility, (II) Enhanced relevance, effectiveness and efficiency of the World Bank strategies and operations supported by the Facility, and (III) Improved development aid effectiveness resulting from changes in the development approaches of aid donors and other development partners, based on lessons learned from the Facility. (IV) Increased adoption and use by beneficiary countries of development knowledge that are produced and mainstreamed through the Facility. The three Windows of the Facility cover activities and programs that span numerous sectors, and involve a combination of technical assistance, free-standing and co-financing operations, both executed by recipients and the World Bank, that will jointly result in the expected development impact of the Facility. The higher-level indicators form a results chain in which the knowledge and skills gained through the Facility’s support would lead to behavioral, institutional, and policy changes – among both the donors and beneficiary countries – that foster and sustain inclusive economic growth. The reporting on the higher-level indicators would be based on aggregating the results for the three Facility Windows, based on performance assessment criteria and Core Sector Indicators that are currently in operational use at the World Bank within the larger framework of building-up to a comprehensive Corporate Scorecard. The longer-term outcomes and relevant indicators for each of the three Windows are delineated below. Annual Report 2016 | 65 WINDOW 1 LEVEL: PASS-THROUGH TO GLOBAL AND REGIONAL PROGRAMS (GRPPS) Expected longer-term outcomes could include: Specific to the GRPP, as reviewed for consistency, and approved in line with the overarching goals of the Facility Indicators: (consistent with IEG’s “Sourcebook for Evaluating GRPPs”) • Relevance • Effectiveness • Efficiency • Governance • Financial Management • Risks • Devolution Strategy • Impacts WINDOW 2 LEVEL: CO-FINANCING OF COUNTRY INVESTMENTS Expected longer-term outcomes of window 2 activities: To ensure coordination of development assistance, the longer-term outcomes of the Facility will be closely aligned with the outcomes being targeted by the Bank’s Country Assistance Strategies and Regional Strategies, as well as Sector and Thematic Strategies. Those higher level outcomes will be based on the World Bank’s sector specific Core Sector Indicators (CSIs) thereby facilitating the harmonization of implementation and completion reporting for both the Facility and the Corporate Scorecard. Indicators: Given (i) the contributing role of the Facility within the context of a co-financing partnership, and (ii) the possibly shorter timeframes for interventions under the Facility compared to the overall Bank investment project, the Results Frameworks for the Bank investment project will contain specific Intermediate Outcome (IO) Indicators that can be directly attributed to the activitiessupported by the Facility. As examples, the quantitative IO Indicators could include (which have corresponding, sector-specific CSIs): • Improved Access (Numbers or Percentages) • Increased Inclusivity (Numbers or Percentages) • Greater Productivity (Units of measure) • Enhanced Sustainability (Financial & Economic-standard measures) Qualitative IO Indicators (which are also aligned with the CSIs) could include: • Improved Governance and Institutional Efficiency/ies • Closer Strategic Alignment (Within Country, and Donor-to-Country) • Greater Value-Added from Process Changes The quantitative and qualitative IO Indicators will be causally linked to the Final Outcome Indicators for the overall investment, which in turn are keyed to the CSIs for measuring longer-term development outcomes. In terms of aggregate reporting, the IOs and results for the investment components that are co-financed by the Facility will be monitored and reported during regular Bank project supervision, using Bank standard documentation. Qualitative IOs and Final Outcomes would rely on beneficiary interviews and case studies for collecting supportive evidence. 66 | Annual Report 2016 WINDOW 3 LEVEL: GENERATION AND TRANSFER OF DEVELOPMENT KNOWLEDGE Expected longer-term outcomes of window 3 activities: At the country, regional and global levels, the longer-term, final outcomes of the Facility’s support for the generation, dissemination and sharing of development knowledge are: (i) increased uptake and utilization by developing country beneficiaries of the lessons learned from the development experiences of other, more advanced countries; and (ii) improvements in development effectiveness of beneficiaries as a result of applying those lessons. Indicators: The main Intermediate Indicator (IO) for the Knowledge Transfer window is “increased access to world class knowledge and lessons learned on sustainable and inclusive economic growth.” Indicators that can be directly attributed to the activities supported by the Facility. These IOs would be measured mainly in terms of: • Additional numbers • Increased shares in percentages Other IOs can be added over time as the grants are being supervised, depending on the progress of implementation. The IOs will be consistent with the overall indicators for the Facility (see above) and, inter alia, the CSIs for: • Information Technology • Participation and Civic Engagement • Social Inclusion among possibly others from the various Human Development, Institutional Capacity-Building, and Knowledge Units of the Bank. At the Window 3 grant level, each proposal will develop an individual Result Framework (RFs) in line with the overall longer-term outcomes of the window and the relevant CSIs. RFs under the Knowledge Transfer Window will be requested as part of the GRM. Annual Report 2016 | 67