Transition Financing: Building a Better Response

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Projects are implemented by the Transition Countries in collaboration with the selected ISAs and relevant partners, and with ISA-Execution in the case of parliamentary proposals and on occasion at the request of the Transition Country. Background and Objectives Under the Deauville Partnership, this Fund was launched as a response to the historic changes underway in several countries in the Middle East and North Africa MENA region and as a long-term, global initiative that provides countries in transition with a framework based on technical support to: i strengthen governance for transparent, accountable governments; ii provide an economic framework for sustainable and inclusive growth; and iii to support the countries in transition to formulate policies and programs and implement reforms.

Areas of Intervention To provide flexibility to respond to transformational and cross-cutting proposals, the Transition Fund provides grant funding and fosters partnerships for technical cooperation projects to address a broad range of inter-related thematic areas covering all three pillars of the Deauville Partnership Finance, Trade, and Governance. Target Beneficiaries A. Eligible Activities Funded by the Transition Fund Eligible technical cooperation can include: piloting implementation of key reforms including investments for this purpose ; knowledge development and dissemination; diagnostic work; capacity-building for strategy development, institutional and policy reform, legal and regulatory drafting, negotiation of contracts and agreements, public resource management, and investment planning; capacity-building for parliamentary oversight of government agencies; preparation including feasibility studies, etc.

Grant making is also flexible enough to respond quickly to requests for technical assistance or initiate catalytic analytical work on addressing specific FCV challenges. The flexibility of KTF grants also make them ideal for piloting innovative small-scale interventions that inform larger Bank operations and enable them to become more conflict-sensitive. These global FCV-focused trust funds are designed to enhance complementarity and cooperation among funding sources and promote a greater impact of small grant financing while maintaining a strong focus on priority themes.

All FCV Group trust funds are governed by a cross—World Bank Committee that is charged with approving grants and providing strategic guidance.

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The KTF Secretariat oversees the day-to-day management of the fund and the project portfolio. It offers support to project task teams, consults with donors on project proposals, processes grants, promotes knowledge exchanges, conducts project evaluations and addresses bottlenecks. KTF grants are subject to the same rigorous technical, legal, and fiduciary due diligence as all other Bank projects.

To ensure consistent monitoring and performance measurement of project results, a comprehensive results framework is applied to all KTF grants. It identifies both fund-level and project-level results and includes sample indicators to help document progress toward results. This includes donor contributions and investment income. The KTF portfolio demonstrates solid progress towards fund and project level results, building resilience and laying out the conditions for economic development.

KTF projects in the EAP region are mainly focused on technical support for complex peace processes, different forms of conflict prevention and furthering economic transitions. The KTF portfolio is also growing in the Africa region, which currently accounts for 18 percent of the portfolio.

While support to the Africa region reflects the multifaceted needs of the large number of FCV countries on the continent, KTF activities are generally geared towards re-engagement and response efforts to urgent crises. Approximately eight percent of KTF grants focus on the ECA region and support activities relating to land conflict, issues and citizen engagement and the improvement of state-society relations.

This support is focused on promoting conflict-sensitive development of the extractive industries in Afghanistan, as well as issues pertaining to drivers of fragility in the region. Only two percent of KTF approved grants are allocated to the MENA region, where efforts center on promoting and mainstreaming citizen engagement in operations. KTF financing in Latin America is geared toward support for implementation of the peace process in Colombia, and also accounts for two percent of approved KTF grants.

Project development objective: Enable the Myanmar Peace Center to generate an evidence base that improves both national decision-making and development partner interventions in support of the peace process. Project development objective: Develop a better evidence base on poverty and living conditions in Myanmar, accepted by all stakeholders, and used to inform national decision-making and development programming in support of the transition process. Project development objective: Contribute to building confidence between communities and sub-district authorities in southern Thailand through participatory local development approaches and capacity building.

Project development objective: Support the Bangsamoro Transition Commission and other related transitional institutions with demand-driven technical assistance on economic development issues and promoting communication and outreach on economic development issues for a more inclusive transition process. Project development objective: Provide timely advisory services to help build legitimate institutions in conflict-affected regions of the Philippines.

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This will be achieved through analytical work, policy advice and donor coordination focusing on citizen security, justice, social programs and jobs. Project development objective: Improve the response of the World Bank in fragile and conflict-prone situations by integrating trauma-sensitivity into livelihood project design and implementation.

Project development objective: Increase the capacity of Government of Timor-Leste, civil society organizations, and communities to develop and implement land legislation in a fair, inclusive, and trans- parent way. Project development objective: Enable the consolidation of lessons from three existing violence-monitoring initiatives in Thailand, Indonesia and the Philippines, with a view to initiate cross-regional corporate learning and promoting broader adoption of violence monitoring instruments.

Managing transitions

Project development objective: Assist the government to better understand grievances and disputes arising from concessions, and evaluate citizen engagement efforts on concessions in order to improve overall concessions management in line with the new land policy. Project development objective: Promote new and innovative approaches to address the challenges of post-conflict project design and implementation and donor coordination in Mali.

Project development objective: Support the alignment of regional development programming with the Peace, Security, and Cooperation Framework for the Democratic Republic of Congo and Great Lakes Region PSCF through the establishment of a joint World Bank—United Nations facility that will provide technical assistance for the design of specific projects and related activities. Project development objective: Assist the Government of Serra Leone to develop and test durable, equitable, and conflict-sensitive minerals policy and citizen-investor-government engagement frame- work for community development.

Project development objective: Improve the knowledge base and quality of data for informing youth employment policies in South Sudan. Project development objective: Improve the knowledge base and quality of data for informing employment policies and operations in a subset of FCS in the Africa Region. Project development objective: Enhance monitoring and evaluation systems and knowledge on the link between pastoralism development and stability for regional organizations and programs. Project development objective: Raise awareness among relevant stakeholders on the potential drivers of local conflict around extractive industries in Afghanistan, and build capacity around community engagement mechanisms seeking to mitigate conflict.

Project development objective: Enhance the knowledge base for operations in the South Asia region in service delivery, and draw lessons to improve their effectiveness in contexts of fragility and conflict. Project development objective: Improve the effectiveness of Bank operations in the electricity and education sectors through in-depth understanding of the political economy of the sectors and the piloting of a social accountability model.

Project development objective: Increase the capacity of governments in the region to enable secure access to land for vulnerable populations through improved identification of the impediments to access to land, and support for project design and land rights policies. Project development objective: Support efforts to improve citizen-state relations in Kyrgyz Republic and Tajikistan by facilitating and building capacity for citizen engagement in energy, water supply, irrigation, and education sectors.

Project development objective: Design and implement citizen engagement activities in the region, which are tailored to particular conflict and post-conflict contexts. Project development objective: Ensure that governments, Bank actors, and external partners take up and operationalize the recommendations emanating from analytical work and technical assistance on forced displacement.

Project development objective: Contribute to the design of improved fragility-sensitive interventions and programming by addressing the poorly understood topic of men and gender as it relates to FCV, and contribute to better understanding how men can be agents of peace and security. Following over four decades of armed conflict in the autonomous region in Muslim Mindanao, efforts at building a sustainable peace are well underway.

Today, several areas of Mindanao remain affected by violence, weak governance and unemployment. Throughout the transition process, the WBG through the KTF have remained engaged to address these challenges and build a sustainable peace. The KTF has supported the transition by facilitating broad-based consultations with representation from all ethnic, religious and other marginalized groups. In the preparation of the Bangsamoro Basic Law the main output of the subsequent Comprehensive Agreement on the Bangsamoro the KTF brought together civil society networks, academics and transitional institutions on economic development aspects of the law.

A MILF ex-combatant needs assessment has also been initiated, which is designed to help bring ex-combatants into productive employment, and improve security conditions. It has helped build crucial confidence in the peace process, thereby laying the groundwork for longer-term institutional transformation. As part of its confidence building efforts, the KTF has built capacity of the Bangsamoro Development Agency, the first of its kind to be driven by former rebels, to identify and implement key development interventions.

Its activities will be indirectly facilitated by the much- acclaimed Bangsamoro Conflict Monitoring System, which has revealed new and important signifiers of violence that are underpinning development and peacebuilding policy and practice in Mindanao. The Central African Republic CAR is in the process of recovery after a civil war, and rebellion causing insecurity and violence on a massive scale.

This crisis has prompted a large and multi-faceted international response, including a United Nations-led peacekeeping operation, and interventions from an array of humanitarian agencies and development partners, including the World Bank. Project activities, primarily geared toward knowledge and learning, have helped identify and address key challenges in CAR, including limited availability of data, weak institutional capacity and inter-agency coordination as well as economic volatility.

Other areas of KTF support have centered on more direct support to CARs transitional institutions to deliver early results and help build much needed trust in the state. Analytical studies have also been completed to help develop better-informed development strategies for CAR. While the grant is still under implementation, KTF activities have generated important knowledge and learning, which is enabling the improvement of Bank operations in CAR.

The LIPW knowledge exchange provided direct operational and strategic support to the restructuring of two ongoing Bank projects. Since the start of the Arab Spring in early , citizens across the Middle East and North Africa MENA have, in different ways and with mixed results, struggled for more inclusive governance, and for their aspirations to be reflected in state affairs.

At its core, this project allows for the use of innovative technologies to empower citizens to demand better services and monitor the use of public resources.

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  4. In the West Bank and Gaza, as part of a World Bank municipal development project, an e-governance platform for service delivery requests is being established, as are one-stop-shop community service centers and a citizen satisfaction survey. The KTF is also supporting a cash transfer project in two pilot governorates, making use of bulk SMS outreach, interactive workshops and assessments, a grievance management system to improve the scheme.

    In Yemen, KTF support allowed for the completion of a citizen engagement assessment to map existing programs, entry points and areas of improvement for the Yemen Social Fund for Development IV project. KTF support will, among other things, contribute to an improved communications strategy.

    Activities in the West Bank and Gaza are still under implementation, but progressing well towards achieving their objectives. Their methods of empowering citizens in service delivery projects are having a direct impact on relieving tensions between citizens and local authorities, and helping build trust in public institutions. The integration of CE mechanisms has improved citizen participation and incentivized people to voice their concerns and participate in local decision-making.

    With a basis in feedback from current activities, project task teams are working closely with clients to help mainstream CE in priority operations, and apply CE entry points at the country system level.

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    This progress is not yet matched in Yemen. Across the Pacific region, a number of Pacific Island Countries PICs are facing a host of challenges hampering the achievement of development outcomes. These stem from their small size, geographic isolation and dispersion, limited institutional and human capacity and vulnerability to economic shocks and natural hazards.

    Many are classified as fragile or conflict-affected states, which further impacts their ability to reduce poverty and promote shared prosperity. The drivers of fragility in these PICs are varied and context specific, and must be adequately understood as a part of any customized development response. KTF has supported piloting of innovative approaches to address project implementation challenges in fragile and small states, particularly with respect to fiduciary and social safeguards compliance issues.

    The KTF grant is also designed to capture and disseminate the outcomes of these approaches. To date, it has supported training workshops and provided hands-on capacity building on procurement, financial management and safeguards for government representatives across 23 projects in the region.

    A lessons-learned paper on strengthening capacity and building implementation in fragile and remote island states has also been completed as part of this project.

    Transition Financing: Building a Better Response

    These activities have built client implementation capacity and strengthened government procurement and financial management systems across the Pacific region. In addition, this project has strengthened the knowledge and application of safeguards policies and documents. Moreover, partnerships established with civil society organizations across the region have helped strengthen and improve social accountability.

    Taken together, these results have advanced a more comprehensive understanding of the dynamics of fragility in Pacific Island Countries, and allowed for effective strategic and operational approaches to be developed, which in turn help build and sustain national capacity. In an estimated 13 million individuals worldwide were displaced due to conflict or persecution according to the UNHCR. In the same year, a record-breaking 38 million people were internally displaced. As displacement trends are growing more alarming, it is becoming increasingly clear that short-term humanitarian responses to displacement need to go hand in hand with a longer-term development approach.

    In this regard, the World Bank has witnessed a dramatic increase in demand for development work on forced displacement from clients, particularly in the MENA and Africa regions. With the objective of improving the ability of the World Bank, its clients, and partners to undertake displacement sensitive development interventions, this KTF grant is financing a series of operationally relevant analytical studies. These include an evaluation of land allocation schemes in Afghanistan, and a displacement-related household survey in Mali, and a Great Lakes displacement study, which is a political economy analysis of an agriculture livelihood program with a particular focus on displacement.

    Technical assistance has also been provided as a part of this project to enhance development responses to forced displacement that support economically and socially sustainable solutions. The studies in question are making important inroads and have contributed a wealth of relevant knowledge on forced displacement across the globe. In some cases, SGBV derives from a breakdown of social order and a cycle of impunity, while the threat and perpetration of sexual and physical violence can also be used as a systematic weapon of war.

    A global review of 50 countries in the WDR showed that sexual violence rates tend to remain high even after a conflict ends.

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