Table Of ContentTHE WORLD BANK W O R L D B A N K O P E R A T I O N S E V A L U A T I O N D E P A R T M E N T
Improving the Lives
of the Poor Through
Investment in Cities
An Update on the Performance of
the World Bank’s Urban Portfolio
THE WORLD BANK ™xHSKIMBy355404zv":&:;:%:+
ISBN 0-8213-5540-6
Improving the Lives of the Poor Through Investment in Cities THE WORLD BANK
OPERATIONS EVALUATION DEPARTMENT OED PUBLICATIONS
ENHANCING DEVELOPMENT EFFECTIVENESS THROUGH EXCELLENCE AND INDEPENDENCE IN EVALUATION Study Series
2002 Annual Review of Development Effectiveness—Achieving Development Outcomes: The Millennium Challenge
The Operations Evaluation Department (OED) is an independent unit within the World Bank; it reports directly Agricultural Extension: The Kenya Experience
Agricultural Extension and Research: Achievements and Problems in National Systems
to the Bank’s Board of Executive Directors. OED assesses what works, and what does not; how a borrower plans
Assisting Russia’s Transition: An Unprecedented Challenge
to run and maintain a project; and the lasting contribution of the Bank to a country’s overall development. The Bangladesh: Progress Through Partnership
goals of evaluation are to learn from experience, to provide an objective basis for assessing the results of the Bridging Troubled Waters: Assessing the World Bank Water Resources Strategy
Bank’s work, and to provide accountability in the achievement of its objectives. It also improves Bank work by Debt Relief for the Poorest: An OED Review of the HIPC Initiative
identifying and disseminating the lessons learned from experience and by framing recommendations drawn Developing Towns and Cities: Lessons from Brazil and the Philippines
The Drive to Partnership: Aid Coordination and the World Bank
from evaluation findings.
Financial Sector Reform: A Review of World Bank Assistance
Financing the Global Benefits of Forests: The Bank’s GEF Portfolio and the 1991 Forest Strategy and Its Implementation
Fiscal Management in Adjustment Lending
IDA’s Partnership for Poverty Reduction
India: The Challenges of Development
India: The Dairy Revolution
Information Infrastructure: The World Bank Group’s Experience
Investing in Health: Development Effectiveness in the Health, Nutrition, and Population Sector
Lesotho: Development in a Challenging Environment
Mainstreaming Gender in World Bank Lending: An Update
The Next Ascent: An Evaluation of the Aga Khan Rural Support Program, Pakistan
Nongovernmental Organizations in World Bank–Supported Projects: A Review
Paddy Irrigation and Water Management in Southeast Asia
Poland Country Assistance Review: Partnership in a Transition Economy
Poverty Reduction in the 1990s: An Evaluation of Strategy and Performance
Promoting Environmental Sustainability in Development
Reforming Agriculture: The World Bank Goes to Market
Social Funds: Assessing Effectiveness
Uganda: Policy, Participation, People
The World Bank’s Experience with Post-Conflict Reconstruction
The World Bank’s Forest Strategy: Striking the Right Balance
Zambia Country Assistance Review: Turning an Economy Around
Evaluation Country Case Series
Bosnia and Herzegovina: Post-Conflict Reconstruction
Brazil: Forests in the Balance: Challenges of Conservation with Development
Cameroon: Forest Sector Development in a Difficult Political Economy
China: From Afforestation to Poverty Alleviation and Natural Forest Management
Costa Rica: Forest Strategy and the Evolution of Land Use
El Salvador: Post-Conflict Reconstruction
India: Alleviating Poverty through Forest Development
Indonesia: The Challenges of World Bank Involvement in Forests
Uganda: Post-Conflict Reconstruction
Proceedings
Global Public Policies and Programs: Implications for Financing and Evaluation
Lessons of Fiscal Adjustment
Lesson from Urban Transport
Evaluating the Gender Impact of World Bank Assistance
Evaluation and Development: The Institutional Dimension (Transaction Publishers)
Evaluation and Poverty Reduction
Monitoring & Evaluation Capacity Development in Africa
Public Sector Performance—The Critical Role of Evaluation
Multilingual Editions
Allègement de la dette pour les plus pauvres : Examen OED de l’initiative PPTE
Appréciation de l’efficacité du développement :
L’évaluation à la Banque mondiale et à la Société financière internationale
Determinar la eficacia de las actividades de desarrollo :
La evaluación en el Banco Mundial y la Corporación Financiera Internacional
Côte d’Ivoire : Revue de l’aide de la Banque mondiale au pays
Filipinas: Crisis y oportunidades
Reconstruir a Economia de Moçambique
Содействие России в переходе к рыночной экономике: беспрецедентная задача
http://www.worldbank.org/oed
W O R L D B A N K O P E R A T I O N S E V A L U A T I O N D E P A R T M E N T
Improving the
Lives of the
Poor Through
Investment in Cities
An Update on the Performance
of the World Bank’s Urban
Portfolio
Roy Gilbert
2004
The World Bank
h t t p : / / w w w . w o r l d b a n k . o r g / o e d Washington, D.C.
© 2004 The International Bank for Reconstruction and Development / The World Bank
1818 H Street, NW
Washington, DC 20433
Telephone 202-473-1000
Internet www.worldbank.org
E-mail
Contents
v Preface
vii Acknowledgments
ix Foreword, Prólogo, Avant-Propos
xiii Executive Summary, Résumen, Résumé Analytique
xxv Abbreviations and Acronyms
xxvii About the OED Rating System
1 1. Context and Methods
2 Developing-Country Cities and the Poor
3 Evaluation Method
5 2. Evolution of the Bank’s Urban Portfolio
5 The First Decade: 1972–82—Initial Focus on Poverty
6 The Second Decade: 1983–92—Rapid Expansion after the Debt Crisis
9 The Third Decade: 1993–2000—Managing Cities and Market Reforms
11 Into the Fourth Decade: 2001 and Beyond—Putting Cities in a Global
Context
15 3. Better Projects in Cities, Better Lives for the Poor
15 Bank Support Makes a Difference
17 Rebound of Project Performance Ratings
18 Key Determinants of Project Performance
18 Project Factors of Success—Things that Managers Can Work On
21 Country Factors—Things that Managers Need to Take into Account
21 Factors Not Found to Be Correlated with Project Performance
22 Where to Focus Action?
23 4. Improving Lives in Cities by Implementing the Strategy
23 Livability—Decent Quality of Life and Opportunity for All, Especially the Poor
25 Good Governance—Inclusion and Accountability, Especially at the
Local Level
27 Bankability—Financial Soundness and Creditworthiness
28 Competitiveness—Efficient Markets in Cities
i i i
I M P R O V I N G T H E L I V E S O F T H E P O O R T H R O U G H I N V E S T M E N T I N C I T I E S
31 5. Recommendations
33 Annexes
35 1: Urban Output and Outcome Indicators from the Urban Strategy Paper
37 2: Selected Performance Data—Urban Portfolio, 1993–2000
41 3: Urban Portfolio: Completed Projects, 1993–2000
45 4: Urban Portfolio: Ongoing Projects
49 5: Management Response
51 6: Chairman’s Summary: Committee on Development Effectiveness
55 Endnotes
59 Bibliography
Box
26 4.1 City Development Strategy
Figures
7 2.1 Timeline of Urban Portfolio Performance
9 2.2 Subsector Shares of Urban Projects and the Percent Satisfactory by Exit
Year, 1993–2000
17 3.1 Ratings Have Rebounded Strongly since 1995
21 3.2 Completed Urban Projects: Bank and Borrower Performance
Tables
2 1.1 More People—Including the Poor—Living in Developing-Country
Cities
6 2.1 The Bank’s Urban Portfolio at a Glance
8 2.2 Urban Policy and Economic Development, UPP-91
10 2.3 OED’s Review of 20 Years of Lending for Urban Development, 1972–92
12 2.4 Cities in Transition: World Bank Urban and Local Government
Strategy, USP
19 3.1 Results of Least-Squares Regression of Factors of Urban Project
Performance
i v
Preface
ities are home to 525 million poor people, and the World Bank makes
substantial investments in developing-country cities every year. This
Cstudy by the Operations Evaluation Department (OED) reviews the per-
formance of 99 urban development operations completed since 1993 to see,
in particular, how these interventions have improved the living conditions of
the urban poor, the primary goal of the livability pillar of the Bank’s current
urban strategy.
This is OED’s first review of the urban portfolio other data. These included country statistics from
since its 1994 study of the first 20 years of Bank the Bank’s World Development Indicators and
urban lending. Since that study was completed, city statistics from the U.N. Habitat Urban Indi-
the Bank has invested US$6 billion more in as- cators Program, as well as data from older proj-
sistance for urban development. ects covered by OED’s earlier 20-year review and
From Regional and OED assessments of proj- newer operations ongoing during this review.
ect performance and other sources, the present Designed primarily as a desk study, the present
study compiled a database of more than 120 vari- review also included interviews of 45 borrower
ables for each of the 99 urban operations com- managers of urban projects worldwide. Sup-
pleted during 1993–2001. Although the porting all this effort was a review of academic and
information in this database was the cornerstone professional literature relating to urban devel-
of the review, the evaluation also made use of opment, especially from non-Bank sources.
v
Acknowledgments
he core team for this work was made up managers in our client countries for their col-
of Roy Gilbert, Anna Amato, and Romayne laboration in our telephone interview, and also
TPereira. Roy Gilbert, lead evaluation offi- to Bank urban task managers for facilitating these
cer of the Operations Evaluation Department contacts. Written comments were gratefully re-
(OED), wrote the report. The telephone survey ceived from Robert Buckley, Tim Campbell,
of project managers was designed jointly with William Cobbett, Elizabeth Campbell-Page, Vic-
OED and conducted by the Gallup Organization toria Elliot, James Fitz Ford, Nils Fostvedt,
under the supervision of Ajay Bhardwaj, with Jonathan Kamkwalala, Christine Kessides, Omar
the assistance of Chris McComb, David Osborne, Razzaz, Gwen Swinburn, Gene Tidrick, and Tom
and Anna Maria Salih. For the extensive data Zearley. Christine Kessides was a peer reviewer
analysis conducted, the study benefited from of the report.
the help of OED colleagues Sohail Malik and The study was published in OED’s Partner-
Anju Gupta Kapoor. The core team also benefited ships and Knowledge Group, under the direction
from advice and inputs at various stages of this of Osvaldo Feinstein, by the Outreach and Dis-
work from fellow OED Urban Cluster members semination staff of the Knowledge Management
Soniya Carvalho and Ron Parker. Bill Hurlbut Unit, including Patrick Grasso, lead knowledge
and Caroline McEuen edited the report. Finally, management officer, Caroline McEuen, editor;
the team’s special thanks go to urban project and Juicy Qureishi-Huq, program assistant.
Director-General, Operations Evaluation:
Gregory K. Ingram
Director, Operations Evaluation Department:
(Acting): Nils Fostvedt
Manager, Sector and Thematic Evaluation:
Alain Barbu
Task Manager: Roy Gilbert
v i i
