Poverty Reduction in the 1990s: An Evaluation of Strategy and Performance (Independent Evaluation Group Studies)

In 1990, a review of global experience showed that a strategy emphasizing broad-based growth and the equitable provision of social services was the most effective route for sustainable progress of poverty. This evaluation examines the direction set by the 1990 strategy and draws lessons of experience about the relevance of the Bank ' s evolving policy framework for poverty reduction. The report concludes that the 1990 strategy was critical in highlighting the importance of broad-based growth for poverty reduction and in focusing operational priorities on the equitable provision of social services, impacting both the composition of Bank assistance and the priorities of other development agencies. However, the Bank has found it difficult to operationalize broad-based growth through tailor-made country assistance programs. The implementation of the strategy was insufficiently focused on measuring and monitoring results linked to Bank assistance. The report recommends that the new poverty reduction strategy include clear monitorable benchmarks for assessing implementation performance. All sector strategy papers should be integrated into the revision of the Bank ' s policy framework. The Operation and Evaluation Department (OED) should ensure that a poverty focus is the organizing principle of all its evaluations. In 1990, when the Bank prepared its 'World Development Report' on poverty, the prospects for global poverty reduction looked bright. The context in which the Bank operates has altered significantly since then, as has the international economic environment. While there have been significant improvements in social indicators in most regions, the absolute number of poor has continued to rise. Many of the significant events of the following decade could not have been predicted. The onslaught of the AIDS epidemic, outbreak of civil war, rash of natural disasters, and the difficult transition to a market economy in Eastern Europe, Central Asia, and East Asia gave no warning signals. Against this backdrop, the Bank has reconfirmed its commitment to fighting poverty while changing its strategy significantly. While it is too early to evaluate the direction set by the new initiatives, this report examines the direction set for the Bank by the 1990 strategy. It analyzes implementation of the strategy and relates the lessons of experience about the relevance of the Bank's evolving policy framework for poverty reduction. It recommends better monitoring and evaluation techniques with the inclusion of clear, measurable benchmarks for assessing implementation performance as the Bank proceeds with the new strategies. Annotation The Bank's strategy has changed significantly in the last decade, and this report summarizes the lessons learned and considers the implementation of the Bank's evolving policy framework for poverty reduction. It recommends better monitoring and evaluation techniques as well as clear, measurable benchmarks for assessing aid effectiveness as the Bank proceeds with the new strategies. Alison Evans. At Head Of Title: World Bank Operations Evaluation Department. Includes Bibliographical References (p. 57-60).