1. 1 Proposed Results Management Framework for 2010-2012 K. Cleaver, AP/PMD for CRMT, 7 April 2009 Management Response: Joint Evaluation of the ARD Policies and Operations in Africa of AfDB and IFAD Kevin Cleaver Assistant President PMD

2. 2 Presentation Layout This presentation is divided into 5 parts: 1. Introduction 2. Filling the sector policy gap 3. Improving performance of the lenders 4. Improving performance of the borrowers 5. Building purposeful partnerships

3. 3 1.Introduction Appreciation to the Bank’s OPEV and IFAD’s OE for a good job done The evaluation therefore is relevant Management endorses, to a very large extent, the conclusions and recommendations contained in the report

4. 4 2. Filling the sector policy gap and support to CAADP The Bank and the Fund managements affirm their support to CAADP’s four policy pillars and country-led CAADP processes Using projects as platform for learning, IFAD will share its knowledge with concerned governments IFAD’s projects fall under CAADP pillars: Pillar 3 – Increasing food supply and reducing hunger Pillar 1 - Extending the area under sustainable land management and reliable water control systems Pillar 2 - improving rural infrastructure and trade-related capacities for market access; and Pillar 4 - agricultural research and technology adoption

5. 5 2.Filling the sector policy gap and support to CAADP (cont’d) The Bank and Fund would like to work closely with:  the African Union/CAADP, and  the Regional Economic Commissions, with the AU taking the lead role IFAD, using its Private Sector Development Strategy will:  engage in policy dialogue to promote an enabling policy and institutional environment for local private ‑ sector development  support local private ‑ sector development in rural areas through its investment operations, and  establish partnerships with the private sector to leverage additional investment and knowledge IFAD will at least maintain the share of Africa to total lending and grants. It would mean significant increase in absolute volume of IFAD’s assistance given overall increase in IFAD’s resources.

6. 6 3.Improving performance of the Lender: Current Status IFAD’s overall project performance is at 72%, compared to AfDB’s 60% and World Bank’s 60% Also important to note that: IFAD’s performance is lower in Africa vis-à-vis the rest of the world

7. 7 3.Improving performance of the Lender: Changed Operating model IFAD’s operating model has changed, with followings as main elements :  IFAD has increased the ratio of directly supervised project from 5% 3 years ago to 90% now  design processes have been adjusted with new design/QE/guidelines  With RB-COSOPs, country strategies are becoming more closely aligned with country policy priorities  IFAD have introduced an arms-length quality assurance system  IFAD suffered in the past for not having direct supervision and country presence

8. 8 Improvements are evident in context analysis, lesson learning, and focus on poverty outcomes More emphasis on management for results Focus is an enhancing implementation readiness at entry On country presence, IFAD has: started recruiting country staff directly on selective basis increase its country offices to 30 by end 2010 undertake a self-assessment of CP in late 2010 prepare a policy on country presence in 2011 3.Improving performance of the Lender: Changed operating model (cont’d)

9. 9 IFAD is making effort to finance simpler, more tightly focused projects such as by using value-chain frameworks IFAD is committed to improve its development effectiveness in fragile states by: adopting a flexible approach to its programme and project design, including longer involvement in country projects strong focus on building the capacity of the community and government institutions We will capture lessons from past and ongoing projects and country programmes for enhancing operational knowledge and share them with in-country stakeholders

10. 10 Overall, IFAD has no comparative advantage on macro or sectoral analytical work On policies, political will plays a more important role that the knowledge on policies IFAD is partnering with other IFIs and UN agencies and bilaterals in Africa (WB, GEF), and also sharing the experiences of the projects that have been successful in sustainable management of natural resources IFAD, either directly or through partnerships, will undertake policy and analytic work on a very selective basis. IFAD has already given a large grant to IFPRI 3.Improving performance of the Lender: Policy and analytic work

11. 11 Given the lack of comparative advantage in engaging directly in policy and analytical work, IFAD: Will be very selective in its policy work, and Emphasize working with partners (e.g. IFPRI) Africa divisions have started engaging in knowledge-sharing. Staff rotation is an organization-wide issue and will be tackled as part of human resource reform programme PBAS is both performance and need-based and thus allocates proportionally higher resources to low income countries. Allows additional allocation for post-conflict countries 3.Improving performance: Implementation of IFAD-specific recommendations

12. 12 Both IFAD and AfDB will increase their support to Governments, in response to their demand: to undertake capacity needs assessments in the ARD sector, including diagnostic assessments provide substantial support for capacity building and institutional development. In the case of IFAD: gender mainstreaming is taking place Overall, gender performance is improving, including for Africa The need for a gender policy is accepted, following evaluation 4.Improving performance of the Borrower

13. 13 5.Building purposeful partnerships IFAD and AfDB will maintain and deepen their current bilateral partnership, based on the 2008 MoU by:  setting a limited number of clear, strategic regional priorities  backed by a clear action plan and adequate resources. IFAD and AfDB will review the current MoU and prepare the necessary addendum, review 2010 performance, and prepare and execute annual partnership plans Both institutions agree to take forward their partnership within the wider partnership around CAADP, and in support of CAADP, at the regional level. In principle:  Bank will finance rural infrastructures, and  IFAD will focus on capacity building for Agricultural Sectors Institutions

14. 14 5. Building purposeful partnerships: Results matrix KEY INDICATOR 2008-2009 ACTIONS (BASELINE) 2010 TARGET 1. CO-FINANCING 1.1. Joint project identification, design and approval. 4 countries5 countries 1.2. Amount cofinancedTotal US$170 Millions (UA 111 Millions) increase by a minimum of 15 per cent 2. SUPERVISION 2.1. No of joint supervision missions undertaken 3 missionsJointly supervise all cofinanced operations starting in 2010 (six operations.)

15. 15 5.Building purposeful partnerships: Results matrix (cont’d) KEY OUTPUTS AND INDICATOR 2008-2009 ACTIONS (BASELINE) 2010 TARGET 4. CORPORATE KNOWLEDGE SHARING AND INNOVATION 4.1. partnership coordinator NoneA coordinator to be appointed in 2010. IFAD to provide logistics support in Rome. 4.2 Share information broadly on a regular basis Collaborate in the advocacy Appoint focal points to regularly exchange information 4.3. Staff exchange programme NoneUndertake a staff exchange programme starting in 2010 for 1-to-2- year deployment periods