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IEG: 2004 Annual Review of Development Effectiveness (ARDE)
The World Bank's Contributions to Poverty Reduction

Download the full report or browse the report by chapters. The key messages are listed beneath the chapter headings below.

Full Report: 2004 ARDE (also available in: Español | Français)
Chapter 1: Reducing Poverty
Progress on reducing poverty has been patchy and uneven
Rapid economic growth is the major force for reducing poverty, but this remains elusive for the majority of developing countries
The Bank takes a broad, multidimensional view of poverty focusing not just on income poverty but also human development, security, voice, and participation
The Bank's approach to poverty reduction now emphasizes public sector governance, institutional reforms, and empowerment of the poor
Chapter 2: Poverty Focus at Corporate Level
The Bank has made a serious effort to put poverty reduction at the forefront of its corporate business models, assistance strategies, and projects
There remains scope for further aligning its country business models and global programs to poverty reduction
Linking the Bank's interventions at the country level to poverty reduction will require a sharper results focus
Chapter 3: Effectiveness at Country Level
The Bank's 2001 poverty reduction strategy is well grounded in the development experience of the 1990s
Economic growth is vital for reducing poverty, and macroeconomic stability is necessary to underpin economic growth
The Bank's country strategies have become more poverty-focused and consistent with the needs of client countries
The lack of country ownership of reforms has constrained the Bank's effectiveness in a number of countries
The Bank needs to expand its assistance for monitoring poverty in order to help design more effective country-level interventions
Chapter 4: Investment, Jobs, and Growth
The Bank's work on investment climate has improved since the early 1990s
The Bank has increased its efforts to promote reforms in the rule of law and public information
The Bank could do more to harness the synergies between private sector development and public sector reform
Designing appropriate reforms requires understanding the conditions that affect private sector activity in each country
Assessing the impact of the Bank's work on public sector governance would now be timely
Chapter 5: Empowerment
Substantial lending has been directed to the provision of social services and to social development activities
The Bank has conflated increased expenditures in education and health with reducing poverty, but their actual impact on poverty has been inadequate
The Bank has carried through with its intention to promote empowerment via social development activities, but both the intended and actual poverty impact of this type of intervention remain to be demonstrated
 
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The Independent Evaluation Group (IEG) is an independent unit within the World Bank; it reports directly to the Bank's Board of Executive Directors. The goals of IEG 's evaluations are to draw lessons from Bank experience, and to provide an objective basis for assessing the results of the Bank's work.

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