IDA21 REPLENISHMENT AN OVERVIEW OF THE DRAFT IDA21 POLICY FRAMEWORK

This document provides an overview of the draft IDA21 Policy Framework, guiding the International Development Association’s efforts from FY2026-FY2028 under the theme “Ending Poverty on a Livable Planet: Delivering Impact with Urgency and Ambition.” It outlines IDA’s strategic priorities, operational approach, and commitment structure designed to address complex development challenges with greater flexibility and focus on outcomes for IDA client countries (p. 2). The framework aims to deliver results with speed and scale.

Core Arguments & Findings

Alignment with WBG Evolution and Strategic Objectives

The IDA21 policy framework is explicitly designed in line with the World Bank Group (WBG) Evolution, aiming to be more responsive to client needs and complex global challenges (p. 2). Key guiding objectives include:

1. Greater focus on development outcomes: Measured and tracked via the new WBG Scorecard.
2. Greater selectivity in Policy Commitments (PCs): Reducing the number of required country-level actions by over half compared to IDA20 to avoid predetermining country programs and enhance flexibility.
3. Strategic alignment: Ensuring IDA actions align with broader WBG institutional strategies and capture the full spectrum of IDA’s contribution (p. 2).

Structure: Focus Areas and Lenses

IDA21 organizes its engagement priorities around five Focus Areas and four Lenses, replacing the previous structure of Special Themes. Both are considered equally important for driving impact (p. 2).

• Focus Areas: Center on sectors where IDA has a comparative advantage.
  • People: Building human capital (health, education, social protection), resilience, and equitable access (p. 2). Includes focus on adolescents (p. 16).
  • Planet: Supporting transformative reforms for a green/blue planet, water/sanitation, sustainable food systems, biodiversity, and climate adaptation/resilience (p. 2, p. 17).
  • Prosperity: Supporting critical economic policies (debt sustainability, DRM, finance, private sector development), strengthening institutions, and improving poverty data (p. 2, p. 18).
  • Infrastructure: Scaling up energy access (esp. renewables), transport, and urban/municipal services (p. 2, p. 19).
  • Digital Transformation: Improving broadband connectivity and digital platforms for economic leapfrogging (p. 2, p. 20).
• Lenses: Key cross-cutting priorities enhancing outcomes across Focus Areas.
  • Gender Equality: Removing barriers, fighting GBV, improving SRH, expanding economic opportunities (p. 3, p. 21).
  • Jobs: Expanding private investment, stimulating job-rich growth, increasing labor force participation (esp. women/youth) (p. 3, p. 23).
  • Private Investment: Leveraging WBG strengths to mobilize private capital, support market creation, and improve business environments (p. 3, p. 24).
  • Fragility, Conflict, and Violence (FCV): Addressing drivers of fragility, strengthening resilience, and deepening support to FCS (p. 3, p. 22).

Policy Commitments: Selectivity and Focus

IDA21 features a significantly reduced and more selective set of Policy Commitments (PCs), categorized as Institutional Actions and Country-Level Actions (p. 3, Annex 1 p. 50-55).

• Institutional Actions (13 PCs): Aim to boost institutional performance, often applying across relevant IDA countries, with aggregate reporting. Examples include implementing Global Challenge Programs (GCPs), the new Scorecard, crisis preparedness tools, One WBG private capital mobilization, strengthening client capacity, the Knowledge Compact, addressing cross-border issues, institutional strengthening, implementing the Gender Strategy, supporting jobs, improving the business environment, and addressing FCV drivers (p. 50-52).
• Country-Level Actions (11 PCs): Apply to subsets of IDA countries, addressing specific binding constraints. Examples target youth services, climate adaptation, water/food security, domestic resource mobilization, debt sustainability, electricity access, urban services, digital access, and financial sector deepening (p. 53-55).

Enhanced Reporting and Outcome Orientation

A core element of IDA21 is a stronger focus on results and transparency, driven by robust reporting mechanisms (p. 4):

• New WBG Scorecard: Serves as the primary tool to report progress on development outcomes using quantitative indicators and results narratives. It features unprecedented data disaggregation (by sex, youth, FCS, disability inclusion, country income categories, SIDS, LDCs etc.) to show who benefits from IDA support (p. 4, p. 11).
• Policy Commitment Reporting: Progress on all PCs and priorities will be reported at the IDA21 Mid-Term Review (MTR) and in the IDA21 Retrospective report (p. 4).
• IDA Results Website: An updated, user-friendly website will provide holistic reporting (p. 4).
• OEE Dashboard: The Organizational Effectiveness and Efficiency dashboard tracks operational performance (p. 4, p. 12).
• Bento Boxes: Visualizations summarizing the Planning, Implementing, and Achieving aspects for each Focus Area and Lens (p. 14-24).

Key Statistics & Data

IDA21 emphasizes tracking development outcomes through the WBG Scorecard and specific Corporate Outcome Targets.

• Corporate Outcome Targets (Examples from Annex 1, p. 50):
  • Provide 250 million people with access to electricity by 2030 (SSA).
  • Reach 1.5 billion people with quality health, nutrition, and population services by 2030 (Global).
  • Reach 500 million people with social protection programs by 2030 (o/w 50% women, Global), with partners.
• IDA Scorecard Indicators (Examples from p. 11): Tracks progress across all Focus Areas and Lenses, including:
  • Millions of beneficiaries of social safety net programs.
  • Millions of students supported with better education.
  • Net GHG Emissions (Mt CO2e/year).
  • Millions provided with water, sanitation, and/or hygiene.
  • Millions using broadband internet / digitally enabled services.
  • Millions benefitting from actions advancing gender equality.
  • Millions of new or better jobs (disaggregated by women/youth).
  • Millions of displaced/host community people provided with services (FCV).
  • Billions in total private capital enabled / mobilized.
• Data Disaggregation: A key feature is enhanced disaggregation of results data by sex, youth, FCS status, disability inclusion, region, country income group, SIDS, LDCs, and joint efforts (p. 4, p. 15).

Methodology

The IDA21 framework was developed through a process involving:

• Building on Experience: Leveraging lessons from past IDA cycles (IDA20 MTR cited, p. 2) and aligning with the WBG Evolution process.
• Consultation: Identified priorities in consultation with IDA Deputies, Borrower representatives, and informed by feedback from Civil Society Organizations (CSOs) (p. 2).
• Structured Approach: Defining priorities through the Focus Area/Lens structure, setting specific Policy Commitments, and establishing the Scorecard for results measurement (p. 3).
• Implementation Tools: Utilizing IDA financing, technical assistance, knowledge products (e.g., revamped core diagnostics like CCDRs, PEAs, CEM 3.0 - p. 6), partnerships, and specific instruments like Global Challenge Programs and the WBG Guarantee Platform (p. 4, 6).

Key Conclusions & Recommendations

The draft IDA21 framework represents a shift towards a more outcome-focused, flexible, and integrated approach aligned with the WBG Evolution.

Key Conclusions:

• The structure of 5 Focus Areas and 4 Lenses provides a comprehensive yet focused approach to IDA’s mandate.
• Reduced Policy Commitments aim to enhance country ownership and responsiveness.
• The new WBG Scorecard is central to driving a results culture and improving transparency.
• Integration across the WBG (One WBG approach) is emphasized, particularly for mobilizing private finance and addressing complex challenges.

Key Commitments (Functioning as Recommendations/Planned Actions - Annex 1, p. 50-55):

• Institutional: Implement 6 GCPs, roll out the new Scorecard, enhance crisis preparedness (including toolkit), enable private capital via One WBG/Guarantees, scale up client implementation capacity support, deploy revamped core diagnostics via Knowledge Compact, scale up support for cross-border issues (GROW), strengthen core government functions/anti-corruption, implement the WBG Gender Strategy, support job creation (esp. youth/women), improve business environments, and address FCV drivers strategically in CPFs/CENs.
• Country-Level: Support specific numbers of countries to: provide youth services, implement climate adaptation/resilience policies, improve water security, implement agriculture/food security reforms, enhance domestic resource mobilization, improve debt sustainability/transparency, boost electricity utility performance, engage municipalities on urban services, increase digital access/platforms, and develop domestic capital markets.

Limitations:

• The document presents a draft framework, subject to revision based on consultations (p. 2).
• Successful implementation depends heavily on country context, capacity, and navigating external shocks.

Next Steps (as of Oct 2024):

• Discussion with IDA Participants (Oct 28-29).
• Formal public consultation period (early Nov).
• Final draft shared ahead of the pledging session (Dec) (p. 2).

Stated or Implied Applications

The IDA21 framework directly guides the application of IDA resources (finance, knowledge, technical assistance) in eligible countries during the FY26-28 period.

• Targeted Interventions: Focus Areas and Lenses define the priority sectors and cross-cutting themes for IDA projects and programs.
• Policy Dialogue: Core diagnostics (CCDRs, PFRs, etc.) and policy commitments inform policy dialogue and reform support.
• Scalable Solutions: Global Challenge Programs (GCPs) provide models for applying integrated solutions at scale in areas like forests, energy transition, digitalization, food security, health preparedness, and water security (p. 5, 50).
• Private Sector Engagement: Specific commitments and the One WBG approach aim to apply WBG tools (guarantees, PSW, IFC/MIGA collaboration) to mobilize private investment.
• Crisis Response: Enhanced toolkit and focus on resilience aim to improve application of IDA resources in crisis situations (p. 50, 51).

Key Questions Addressed or Raised

Questions Addressed:

• What are IDA’s main strategic priorities for the IDA21 cycle (FY26-28)?
• How does the IDA21 framework align with the broader WBG Evolution?
• How will IDA structure its engagement across different sectors and themes?
• How will IDA balance standardized commitments with country-specific needs (via reduced PCs)?
• How will IDA measure and report on development outcomes and impact?
• What are the specific institutional and country-level actions IDA commits to supporting?

Questions Raised (Implied):

• How effectively will the new framework and Scorecard translate into tangible development impact on the ground?
• Will the increased flexibility lead to more tailored and effective country programs?
• How will IDA manage potential trade-offs between the different Focus Areas and Lenses?
• How successful will the “One WBG” approach be in mobilizing private capital at scale in IDA contexts?
• How will IDA ensure sufficient capacity (both within WBG and in client countries) for implementing this ambitious agenda, particularly in FCV settings?