In 2010 the IDB Board of Governors approved the 9th General Capital Increase (IDB-9), adding US$70 billion in paid-in and callable capital to IDB’s existing US$100 billion capital base. Governors tied the capital increase to a series of Bank reforms, the IDB-9 Agreement.
It laid out an institutional strategy with two overarching objectives – reducing poverty and inequality and achieving sustainable growth – and two strategic goals: to address the special needs of the less developed and smaller countries, and foster development through the private sector. It also enumerated a broad set of priorities and activities.
OVE undertook a mid-term review in 2012, which broad conclusion was that “Management has invested heavily in efforts to implement the IDB-9 requirements. The requirement of ‘full implementation’ has been met or is in the process of being met on most fronts…. The progress toward ‘effective implementation’ has been more mixed. Likely effectiveness varies widely across areas, with some moving forward well and others more slowly, and with a few having little impact or even imposing costs on the organization.” The evaluation included 10 recommendations. In 2016, the Board of Directors requested that OVE include a IDB-9 evaluation in its 2017-18 work program. OVE delivered it to the Board in April 2018.
This evaluation reviews IDB’s implementation of the IDB-9 mandates and results to date. It follows the themes of OVE’s 2013 mid-term evaluation (also mandated under IDB-9) and focuses more centrally on “the big picture” – to what extent IDB-9 mandates have been implemented, what has been achieved, and what challenges remain going forward. It is organized around four key intermediate outcomes of IDB-9.
01_ Lending patterns and trends in the Bank tend to change slowly from year to year, primarily in response to country demand and country conditions, and top-down lending mandates are rarely effective in this context.
02_ IDB-9’s heightened attention to the measurement and documentation of results was well-placed, but further work is needed to make it a reality.
03_ One of the Bank’s most important but difficult challenge – both in supporting development in LAC and in ensuring success in its own projects - is to help countries strengthen institutional capacity and governance.
04_ Promoting openness and transparency is a worthy goal of all MDBs, and IDB should make a renewed push in this direction.
05_ IDB is likely to face increasing challenges of relevance and competitiveness as LAC countries continue to develop, and greater consensus is needed on what kind of institution IDB wants to be.
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