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This publication is a product of the Concessional Finance & Global Partnerships Vice Presidency of the World Bank 1818 H Street, N.W. Washington, D.C. 20433 www.worldbank.org/ida www.facebook.com/ida.wbg www.youtube.com/worldbank October 2012

Photography: Cover, Arne Hoel/World BankWalking to school, Ghana. p.3, World BankBefore and after shot showing the impact of the Coastal Cities Environmental Sanitation Project in Vietnam. p.4, simone D. mccourtie/World BankCommunity meeting in Aurangabad, India. p.5, stephan Bachenheimer/World BankChildren in Liberia receive school feeding as part of the Banks Global Food Crisis Response Program. p.6, arne Hoel/World BankSolar panels enable Bangladeshi children, Shati and Towhid, to study at night. p.8, Jonathan ernst/World BankWinston Mills-Compton teaches a class in mathematics at the Mfantsipim Boys School in Cape Coast, Ghana. p.9, Dang thanh lanWorkers in Vietnam fight erosion by building a secure corridor at Mui Ne beach in Binh Thuan Province. p.10, UnIceFSomali drought refugees receive education, vaccinations, and food in the refugee camps in Dadaab, Kenya. p.11, Getty Images p.13, Bill lyons/World BankStudents taking year-end exams at Kardi School in Sanaa, Yemen. p.14, Jonathan ernst/World BankWorkers maintain the thermal power station in Takoradi, Ghana. p.15, arne Hoel/the World BankHydro power plant in Ghana. p.17, World BankIn post-earthquake Haiti, over 210,000 children receive tuition waivers, allowing them to attend school where they receive books, hot lunches, and health services. p.18, simone D. mccourtie/World BankFemale farmer showcasing her agricultural products in Maharashtra, India. p.19, istockphoto p.20, World BankEx-combatants in Cote dIvoire turn in their weapons as they begin a youth-at-risk job training and reinsertion program. Design: Lloyd Greenberg Design, LLC.

Who We Are The International Development Association (IDA) is the part of the World Bank that helps the worlds poorest countries. Established in 1960, IDA aims to reduce poverty by providing loans (called credits) and grants for programs that boost economic growth, reduce inequalities, and improve peoples living conditions.
IDA complements the World Banks original lending armthe International Bank for Reconstruction and Development (IBRD). IBRD was established to function as a selfsustaining business, and provides loans and advice to middle-income and credit-worthy countries. IBRD and IDA share the same staff and headquarters and evaluate projects with the same rigorous standards. IDA is one of the largest sources of assistance for the worlds81 poorest countries, 39 of which are in Africa, and is the single largest source of donor funds for basic social services in these countries. IDAfinanced operations deliver positive change for 2.5 billion people, the majority of whom survive on less than $2 a day.

By the Numbers

Key IDA achievements from 2000-2010

3 million +
Teachers recruited and/or trainedmore than four times the number of primary and secondary school teachers in France.

310 million
Children immunized equivalent to four times the number of children in the United States.

113 million +
People received access to an improved water source. For every $1 invested in water and sanitation, $8 is returned.

| I D A | The world banks fund for The pooresT |

IDA lends money on concessional terms. This means that IDA credits have a zero or very low interest charge and repayments are stretched over 25 to 40 years, including a 5to 10-year grace period. IDA also provides grants to countries at risk of debt distress. In addition to concessional loans and grants, IDA provides significant levels of debt relief through the Heavily Indebted Poor Countries (HIPC) Initiative and the Multilateral Debt Relief Initiative (MDRI). Since its inception, IDA has supported activities in 108 countries. Annual commitments have increased steadily and averaged about $15 billion over the last three years, with about 50 percent of that going to Africa. For the fiscal year ending on June 30, 2012, IDA commitments reached $14.8 billion spread over 160 new operations. 15 percent of the total was committed on grant terms.

Many of the issues developing countries face do not respect borders. By helping address these problems, IDA supports security, environmental and health concerns, and prevents these threats from becoming global issues. Because donor contributions to IDA are pooled together, IDA is able to leverage a large un-earmarked capital base to respond to critical country needs, particularly during times of crisis and in difficult, fragile environments. IDAs operational work is complemented by analytical studies that support the design of policies to reduce poverty. IDA advises governments on ways to broaden the base of economic growth and protect the poor from economic shocks. IDA also coordinates donor assistance to provide relief for poor countries that cannot manage their debt-service burden, and has a system for allocating grants based on countries risk of debt distress, designed to help countries ensure debt sustainability. IDA places a premium on development impact and is regarded as a transparent, cost-effective platform for achieving results. (Read about results measurement below.) In the decade of 2000-2010, for example, IDA financing immunized 310 million children; provided access to an improved water source for 113 million people and an all-season road for 26 million people; helped more than 47 million people receive health, nutrition, and population services; and brought better education to more than 100 million children each year. Visit our website to learn more about what we do, and see what donors and others say about us at www.worldbank.org/ida and www.youtube.com/worldbank.

By the Numbers
Key IDA achievements from 2000-2010

What We Do
The worlds poorest countries are often unable to attract sufficient capital to support their urgent development needs and therefore rely on official aid flows as a critical source of funding. IDA is a multi-issue institution, supporting a range of development activities, such as primary education, basic health services, clean water and sanitation, environmental safeguards, agriculture, business climate improvements, infrastructure, and institutional reforms. These projects pave the way toward equality, economic growth, job creation, higher incomes, and better living conditions. IDA currently places emphasis on four thematic areas: gender, climate change, fragile and conflict-affected countries, and crisis response. (See section on frontier issues for more details.)

33 million
Mosquito nets purchased and/or distributed to prevent malaria.

2 million+
Classrooms built or rehabilitated benefiting over 105 million children per year.

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@WorldBank IDA-financed projects deliver positive change for 2.5bn peoplemost of whom survive on less than $2 a day. Discuss on Twitter: #AidEffectiveness

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How Does IDA Work?

IDA funding and voice. IDA is overseen by its 172 shareholder countries, which comprise the Board of Governors. The day-to-day development work of IDA is managed by Bank operational staff, governments, and implementing agencies. While the IBRD raises most of its funds on the worlds financial markets, IDA is funded largely by contributions from the governments of its member countries. Additional funds come from IBRD and the International Finance Corporation, IFC ($3 billion in IDA16), and from borrowers repayments of earlier IDA credits ($14.6 billion in IDA16). Donors meet every three years to replenish IDA resources and review its policy framework. The most recent replenishment of IDAs resourcesthe 16th replenishment (IDA16)was finalized in December 2010, resulting in a record replenishment of $49.3 billion to finance projects over the threeyear period ending June 30, 2014. Donor contributions represent the largest share of

IDA funding, accounting for almost 65 percent in IDA16 ($31.7 billion). The replenishment process typically consists of four formal meetings held over the course of one year. In addition to officials from the now 50+ donor governments (known as IDA Deputies), representatives of borrowing member countries are invited to participate to help ensure that IDAs policy framework is responsive to country needs. Policy papers discussed during the replenishment negotiations are disclosed to the public, and the draft replenishment agreement is posted on the web for public comment prior to the last replenishment meeting. IDA staff also engages with civil society organizations (CSOs) around the world on an ongoing basis. Donors will meet to review the progress of IDA16 at a Mid-Term Review meeting to be held in the fall of 2012.

IDA borrowers
Eligibility for IDA support depends first and foremost on a countrys relative poverty, defined as gross national income (GNI) per capita below an established threshold and updated annually. IDA also supports some countries, including several small island economies, which are above the operational cutoff but lack the creditworthiness needed to borrow from IBRD. Some countries, such as India and Pakistan, are IDAeligible based on per capita income levels, but are also creditworthy for some IBRD borrowing. They are referred to as blend countries. Eighty-one countries are currently eligible to receive IDA resources. Together, these countries are home to 2.5 billion people, half of the total population of the developing world. An estimated 1.8 billion people there survive on incomes of $2 or less a day. See the list of current IDA borrowers at www.worldbank.org/ IDA/borrowers

| I D A | The world banks fund for The pooresT |

How IDA funds are allocated. IDAs81 eligiblerecipients have very significant needs for concessional funds. But the amount of funds available, which is fixed once contributions are pledged by donor governments, is below what countries need. IDA must therefore make decisions about how to allocate scarce resources among eligiblecountries. (See box on borrowers.) Funding decisions are based on an array of criteria, including countries income levels and performance record in managing their economies and ongoing IDA projects. To be eligible for funds, countries must first meet the following criteria: Relative poverty defined as GNI per capita must be below an established threshold and updated annually (in fiscal year 2012: $1,175).

IDA is able to leverage a large capital base to respond to country needs during times of crisis #FoodCrisis #FinancialCrisis #DisasterResponse

Lack creditworthiness to borrow on market terms and therefore have a need for concessional resources to finance the countrys development program. Countries are then assessed to determine how well they implement policies that promote economic growth and poverty reduction. This is done through the Country Policy and Institutional

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In 2011, IDA was hailed as a global aid transparency leader by Publish What You Fundranked #1 out of 58 donors #OpenDev #AidEffectiveness #IATI

Because the acceleration of economic and social development in sub-Saharan Africa remains foremost among IDAs priorities, the IDA16 Agreement recommends these countries receive at least 50 percent of IDA funds, as warranted by their performance. Lending terms. Terms of lending vary for the different members of IDA, reflecting their income levels and debt status. As a result of discussions and reviews conducted during IDA16, IDA adjusted the lending terms of its more economically developed borrowers, resulting in a hardening of terms for them (shorter maturity and the addition of an interest rate), while still maintaining a degree of concessionality.

Assessment. This assessment and portfolio performance together constitute the IDA Country Performance Rating (CPR). In addition to the CPR, population and per capita income also determine IDA allocations. These ratings are disclosed on IDAs website: www.worldbank.org/ida.

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Why IDA?
The International Bank for Reconstruction and Development, better known as the World Bank, was established in 1944 to help Europe recover from the devastation of World War II. The success of that enterprise led the Bank, within a few years, to turn its attention to developing countries. By the 1950s, it became clear that the poorest developing countries needed softer terms than those that could be offered by the Bank, so they could afford to borrow the capital they needed to grow. This led to the creation of IDA in 1960. Today, IDA is recognized as a global institution with a transformative effect that individual national donors cannot match. IDA is unique because it: Is based on a demand-driven, country-based modelcountries determine the priorities for their IDA financing. Provides a vital platform to help countries coordinate and target their bilateral and multilateral resources and maximize their scarce aid resources across multiple sectors; every $1 of IDA aid leverages, on average, another $2. Generates and shares knowledge on best practices and results across the globe. Supports capacity-building and the development of essential systems and institutions for more effective delivery of issue-specific aid. Promotes global priorities within national development programs. Focuses on strategic areas of engagement where support is urgently needed: climate, gender, fragile and conflict-affected states, and response to natural disasters and the food, financial, and other crises. Is ever improving its rigorous results measurement system, in place since 2002. Puts a premium on efficiency and effectiveness and was ranked first in a recent evaluation of 40 multilateral and bilateral agencies. Its safeguards and accountability mechanisms promote sustainability and good governance. Has staff on the ground in nearly all IDA countries, ensuring that support is targeted and well monitored. IDA is also a global leader in transparency and undergoes the toughest independent evaluations of any international organization. For example, in 2011, IDA was hailed as a global aid transparency leader by Publish What You Fund, a UK-based coalition of civil society organizations working on governance, aid effectiveness, and access to information. IDA was ranked #1 out of 58 donors in the index. Equally, a 2011 assessment by the Center for Global Development of the quality of aid from donor countries and aid agencies showed that IDA, as well as a handful of other multilateral funds, spent aid money smarter than most bilateral funds, extracting far more value for money in building a more stable, safer, and more prosperous global system. A recent multilateral aid review by DFID, the UKs development arm, also cited IDAs ability to deliver results and its enormous cultural shift in transparency and called the move a high standard for the other international financial institutions to follow. In a climate where donor finances are stretched, there is even more need for donors to make greater and better use of multilateral channels. The leader among those channels is IDA.

By the Numbers

Key IDA achievements from 2000-2010

47 million+
Peopleequal to two-thirds of the population of the UKreceived access to basic health, nutrition, or population services.

118,000 km+
Of roadsenough to circle the globe nearly three timesconstructed or rehabilitated and over 134,000 km of roads maintained.

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IDA has had a rigorous results measurement system in place for over 10 years #AidEffectiveness #Value4Money

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How Do We Know IDA Works?

For more than a decade, IDA has been measuring its role in helping countries grow and reduce poverty and informing donors about the effectiveness of their contributions. The Results Measurement System (RMS) for IDA16 uses an integrated results and performance framework to show aggregated results across IDA countries. It assesses IDAs contribution to development results, and is linked to the Millennium Development Goal framework. It also shows whether IDA is managing its operations and services effectively and is functioning efficiently. The RMS framework groups indicators into four tiers. The first two tiers track aggregate country development results and IDAs contribution to these development results. The other two capture elements of performance against agreed IDA16 performance standards in an IDA Report Card. The four tiers are: (1) IDA Countries Progress; (2) IDA-Supported Development Results; (3) IDA Operational Effectiveness; and (4) IDA Organizational Effectiveness. The RMS supplements the more-detailed project, country, and sector results data previously available and complements qualitative overviews conducted at the country, sector, thematic, and project levels.

The Future of IDA

Todays fiscal environment presents challenges for all those involved in developmentfrom borrowing countries to donors to CSOs. Additional challenges also need to be addressed, including with respect to climate change, fragile states and the need for countries to prepare for and respond to future crises. And while a number of countries are expected to exceed IDAs per capita income cutoff in the next decade, it is also clear that these countries will continue to be home to millions of poor people who will still need extensive support. Given this climate, a number of working groups are exploring issues in the areas of inclusive growth, results, fragile states, and innovative ways for enhancing IDAs financial sustainability, including potential additional mechanisms for funding IDA in the future. IDA Deputies will also gauge development priorities against this landscape, to ensure that aid dollars are used to the utmost advantage.

By the Numbers
Key IDA achievements from 2000-2010

300 million
Textbooks purchased and/or distributed15 times the number of books in the New York Public Library.

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IDA is providing nutrition, health and sanitation services for more than half a million drought refugees living in settlements along the Somali border in Kenya and Ethiopia #CrisisResponse #SocialSafetyNet

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IDAs Focus on Frontier Issues During the IDA16 replenishment process, IDA Deputies and borrowing country representatives agreed that IDA should focus more on delivering development resultswith a special emphasis on the development themes of gender, climate change, fragile and conflict-affected countries, and crisis response. These frontier issues were chosen due to their critical importance to helping countries achieve the Millennium Development Goals by the target date of 2015 and ensuring development gains made over the last decade were not placed in jeopardy. Here is a snapshot of IDAs approach to the issues and results. Gender
and education and ensuring their equal access to economic opportunities. Progress on key gender indicators such as girls enrollment and completion rates, maternal mortality, labor force participation, and asset ownershipalso depends on investments in water, sanitation, transport, productive assets, and access to financial services. While many agencies cover gender issues in education and

Fostering gender equality and empowerment

In the poorest countries, gender inequities acutely limit opportunities for girls and women. Gender equality and the empowerment of women and girls are among the most effective ways to combat poverty, hunger, and disease and to stimulate development that is truly sustainable. IDA is uniquely suited to support gender equality outcomes at the country level, which requires integrating work across multiple sectors and sustaining efforts over long periods. IDA has been working to expand girls access to education and to create other opportunities for empowerment. As the largest source of concessional finance for low-income countries, IDA continues to play a critical role in investing in womens health

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health, few can match IDAs effectiveness in infrastructure, private sector development, agriculture, and financial service delivery. All are essential to expanding womens economic opportunities, which is a key pillar for advancing gender equality in IDA countries. Results. IDAs efforts are yielding results at the operational level and are having a tangible impact on the ground in developing countries. Greater gender awareness and incentives supported through the Banks Gender Action Plan have contributed to improved coverage of gender in economic sectors in IDA operations.

Since 2007, an IDA-supported Malaria Control Booster project has distributed 2 million long-lasting medicated mosquito nets throughout Benin, for the benefit of children under five and pregnant women. Additional financing is helping to procure another 1.2 million nets. Women are also gaining access to electricity for the first time. In Lao, a Power to the Poor (P2P) project is providing interest free loans to poor and women-headed households whose impact to earn money is hampered by lack of electricity and who are unable to finance the installation cost of connecting to the power grid. From 2008-2010, almost 10,000 additional households were connected to the grid, transforming their lives. The results demonstrate how much more successful a project can be when it mainstreams gender sensitivity in the project design and at implementation.

By the Numbers
Key IDA achievements from 2000-2010

009 Children

Impressive gains are evident in health as Gender projects also target job creation and well. For example, an IDA-funded health empowerment. In Haiti, the Fostering Ecoproject helped millions of people in rural Afnomic Empowerment for Women AgriculturPeople received access to ghanistan access primary health care for the al Producers Project, funded by the Gender almost 600,000 improved first time. Health care for expectant mothAction Plan, is focusing policy on equipping sanitation facilities. 11% more ers expanded, with the number of deliveries women with the right skillsboth technical girls attend school when assisted by trained health workers jumpand financialto increase crop yields, acsanitation becomes available. ing from 6 percent to 23 percent and the cess markets, and increase their incomes. number of pregnant women who received Key results include a consultation report at least one prenatal care visit rising from on women producers and their needs, an 8,500 in 2003 to 188,670 in 2008. Around assessment of the capacity building needs 20,000 community health workershalf of the government, and the creation of preof them womenhave been trained and Partnership project indicators to monitor gender liminary 010 Mothers 011 Disease 012 Environment 013 deployed throughout Afghanistan, increasinclusion in the agricultural sector. ing access to family planning and boosting childhood vaccinations.

5.8 million

From 2000-2010, gender parity in IDA countries rose from 91 girls for every 100 boys enrolled in primary school to 96 girls for every 100 boys enrolled and 88 girls to 95 for every 100 boys enrolled in secondary school.

86 percent
of women in Uzbekistan received antenatal care in 2008, compared with 79 percent in 2004.

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In Yemen, 30,000 girls attended school as a result of conditional cash transfer schemes introduced by IDA in 2008 and 2009 #GirlsEducation #ThinkEqual

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IDA more than doubled investment in renewable energy and energy efficiency during 2009-2010 #ClimateAdaptation

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Climate

Managing the unavoidable. Avoiding the unmanageable

Climate change presents an urgent threat to the well-being of people in all countries. This concern is rooted in the fact that most developing countries are more dependent on agriculture and other climate-sensitive natural resources for income and well-being, and that they also lack sufficient financial and technical capacities to manage increasing climate risk. IDA countries are the most vulnerable to risks associated with droughts, floods, coastal storms and changes in agricultural productivity. Adaptation to build up resilience to these risks is the most significant climate challenge facing these countries today. IDA countries also face the challenge of planning for and investing in low-carbon solutions. The estimated cost to build resilience to IDA countries over the next 10 years is $24-$26 billion. This cost is expected to rise to $40 billion by 2050. Addressing climate change is a key pillar of IDAs policy framework, in recognition of the urgent challenge the issue poses to the wellbeing of the poorest, and the rising cost of achieving the MDGs. As such, IDA promotes climate resilient development by integrating knowledge, strategic work, investment and policy support and by leveraging financing from other sources. Results. IDA supports clients efforts to address climate risks in their development strategies by serving as a platform for applying new climate financing and emerging knowledge most effectively. Importantly, IDA can leverage sorely needed financial resources from an array of sources for climate change, and can help countries use those resources effectively.

Renewable energy and energy efficiency are cornerstones of mitigation action in IDA countries. During 2009-2010, investment in core funding for these activities doubled from an average of $103 million to $233 million. Climate-related knowledge products have increased in number. During 2009-2010, 20 analytical and advisory assistance products dealing specifically with adaptation and vulnerability to climate change were delivered compared to an average of two per year during the IDA14 period (FY06-08). In Bangladesh, IDA has been active for a nearly a decade in the Rural Electrification and Renewable Energy Development project. The project helped connect 630,000 consumers to the grid. In remote rural areas, where grid electricity is not economically viable, the project established Solar Home Systems as a practical and cost-effective alternative for electrification. About 750,000 remote households and rural shops now have access to solar power. The project also supported deployment of 10 million energy-efficient Compact Fluorescent Lamps in exchange for incandescent lamps to reduce peak demand. In the low-lying island nation of Kiribati, IDA is working through the Kiribati Adaptation Program to provide its citizens with safe water and maintain resilient coastal infrastructure in the face of climate change. The program is protecting the islands against coastal erosion by investing in seawalls and mangrove planting at priority sites. When the program is completed in 2016, it will benefit more than 100,000 people.

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Crisis

Mitigating the effects of severe shocks

IDA countries are subject to a variety of crises and emergencies that can undermine their economic and social development efforts. These include economic shocks such as food, fuel and financial crises, and natural disasters, such as droughts, earthquakes, floods and tsunamis. IDA countries have limited capacity to address the impact of such crises given their limited resources, infrastructure gaps, limited economic diversification, environmental vulnerabilities, widespread poverty, and often poorly developed formal safety nets.

Horn of Africa, where in recent months nearly 12.5 million people were hit hard by one of the worst droughts in 60 years. Hunger, deaths, and the loss of subsistence crops and livestock were widespread. The situation was compounded by steep increases in food prices, and the flow of refugees was putting additional pressure on food markets across the Horn.

011 Disease

To help mitigate the impacts, along with regular IDA country allocations, IDA provided $250 million for the Horn of Africa through its Crisis Response Window, as a part of $1.88 billion in Bank Group support for the recovery over the medium term and for drought resilience over the longer term. IDAs key comparative advantages in crisis The crisis response financing is addressing response are its ability to link short-term the regional nature of the crisis through a crisis mitigation and long-term develop$30 million grant for a UNHCR-administered ment objectives, its capacity to work closely project that is providing nutrition, health, By the Numbers Key IDA achievements Millennium Development Goal Icons with other organizations and collaboratively and sanitation services for more than half a from 2000-2010 (notably the UN and IMF), and to build on million people living in refugee settlements previous analytical work and the portfolio of along the Somali border in Kenya and Ethioprojects under implementation. pia. The remainder of the crisis response resources are targeting country-level efforts, In 2007, the emergency response policy including new and existing operations, in framework Ethiopia, Kenya, and Djibouti. Efforts are 006 Hunger 007 Education was revisedGender 008 to enable more rapid 009 Children 010 Mothers 011 Disease preparation and approval of emergency refocused on providing productive safety net Food-insecure households sponse projects. With the adoption of a pilot support, as well as financing for health and in Tajikistan benefited from Crisis Response Window in IDA15 and a jobs, agriculture, water and sanitation, and wheat seed and fertilizer 012 Environment 013 Partnership creation of dedicated window in IDA16, the power access. distribution in 2008. emergency policy framework was complemented by a dedicated funding mechanism. Another example of IDAs crisis response is in Haiti, where IDA provided immediate supTo improve IDAs capacity to respond in the port following the 2010 earthquake for the immediate aftermath of a crisis or emerreestablishment of basic government funcgency, an Immediate Response Mechations, while playing a leading role in coordinism was adopted in 2011. The IRM allows nating the Post-Disaster Needs Assessment participating IDA countries to have immediin collaboration with other development ate access to a portion of the undisbursed partners. People benefited from jobs balances of their IDA project portfolio in the and cash transfers provided by event of an eligible crisis or emergency and Through IDA-supported education programs IDA-funded social safety net thus shorten IDAs crisis response time. in Haiti, children receive free school tuition, programs. materials, and meals. Some 210,000 tuition Results. The value of IDAs work to address waivers and meals for 75,000 children have the impacts of crises is also evident in the

71,000

012 Environme

11 million

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Through IDA, 210,000 Haitian kids have received free school tuition; 75,000 receive free hot lunches #CrisisResponse #DisasterResponse

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been provided since the earthquake hit. With IDAs help, over 200,000 buildings have been assessed through the damaged building assessment initiative, under the responsibility of the Ministry of Public Works. These assessments are crucial to reconstruction planning. IDA also responded rapidly to the 2008-09 food price crisis with $836 million in fasttrack funding through the World Banks Global Food Crisis Response Program (GFRP), which provides IDA funding with trust fund grants to address the immediate food crisis needs of the poor, while encouraging agricultural systems and policy regimes to address similar threats in the future.

In Ethiopia, an IDA grant and credit of $250 million for a Fertilizer Support Project provided the government with foreign exchange resources to facilitate the import of fertilizer for the 2009 production seasons. A total of 510,000 tons of fertilizer was procured with IDA funding for the 2009 production season. In Nepal, the Social Safety Nets project employed 168,263 workers through food and cash-for-work programs, providing food for approximately 940,000 beneficiaries across 28 food-insecure districts. Between November 2008 and June 2009, 94 percent of beneficiaries reported an increase in their food security.

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Fragile & ConflictAffected States

Breaking the cycle of conflict and poverty
Conflict begets poverty by undermining economic development. It removes personal security and, by weakening governance, allows violent crime including trafficking in narcotics, arms, and people to flourish. It threatens both national and regional stability. More than 1.5 billion people live in fragile and conflict-affected countries. For these people, achieving the MDGs is a distant goal. Political instability and armed violence in these countries cannot only hinder development in neighboring countries, but can also lead to refugees, cross-border crime, human trafficking, and terrorism, with regional and potentially global impacts. IDAs support in these countries pursues the goals of peace-building and state-building, which are not well-captured by the MDGs or by country performance measures. IDA provides the financing needed to rebuild state institutions and develop the infrastructure that people need to resume peaceful and constructive lives. Eligible conflict-affected countries receive exceptional allocations from IDA and have also benefited significantly from IDAs policies on debt relief. Since June 1999, IDA has committed more than $18.8 billion to fragile and conflictaffected countries, including support for arrears clearance, of which about $11.3 billion was committed to post-conflict countries. During the IDA16 period, IDA is continuing the reforms introduced over the past few years, notably in the areas of enhancing project design and implementation; research, knowledge, and learning; im-

proving partnerships and aid coordination; increasing the effectiveness of multi-donor trust funds; decentralization of staffing and decision-making authority; and compliance with fiduciary principles. Results. Over the period from 2000-2010, IDA financed the demobilization and reintegration of almost 441,000 ex-combatants in eight post-conflict countries. In addition, IDA created more than 17 million persondays of employment through restoring or providing access to water, roads, and other essential infrastructure. IDA has provided significant support for Liberias recovery, where close to 15 years of brutal conflict destroyed lives, key institutions, and infrastructure, and grounded the economy to a halt. IDA has provided $750 million (including for arrears clearance) in support of a significant debt relief effort that cut Liberias debt by more than 90 percent. In addition to providing technical assistance and policy advice, IDA also helped rehabilitate the countrys basic infrastructure services and rebuild critical state institutionsincluding for the transparent and effective use of public resources and basic service provision. Support from IDA and other donors has enabled Liberia to move from a post-conflict crisis situation to a longer-term view of development, with an emphasis on strategic sectors such as energy, education and youth employment. In Sri Lanka, the 30-year war between the government and the Liberation Tigers of Tamil Eelam devastated nearly twothirds of the population of its Northern and Eastern provinces. Most aspects of life sufferedpeople were displaced, institutions disintegrated,

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IDA financed the demobilization and reintegration of almost 441,000 ex-combatants in 8 post-conflict countries #Reconstruction

and essential irrigation schemes were damaged. IDA financed a $64.7 million community livelihoods project for village rehabilitation and development and major irrigation rehabilitation. So far, 200,000 families have seen their incomes increase by up to 50 percent, communities have invested in income-generation activities within the village economy, and 1,500 youth have received skills training and now have jobs.

With a history of conflict and widespread poverty, Burundi has also been working with IDA to rebuild peace and security, modernize public finance, provide basic services, and strengthen the agricultural sector. Due to its weak fiscal position and high risk of debt distress, Burundi has benefited from IDA grants since 2000. Starting with a series of emergency operations, IDA has supported the stabilization of the economy and launch of the national reform program. Burundi has since seen improvements in budget discipline and efficacy, as well as the rehabilitation and creation of economic infrastructure.

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The World Banks Fund for the Poorest I IDA 1818 H Street, N.W. Washington, D.C. 20433 USA

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