In response to a complex and rapidly changing development agenda, the World Bank has adapted and expanded its toolkit of assistance. New lending instruments, advisory and analytical tools, and partnership arrangements have been crafted to address the myriad needs and preferences of borrowers and to meet the challenge of the Bank's mission of poverty reduction.

As the 2001 Annual Review of Development Effectiveness (ARDE) demonstrates, selecting the right combination and sequencing of activities in a given setting can make the difference between success and failure. At the project, country, sector, and thematic level, there is unexploited potential to make judicious use of lending and nonlending activites, to choose instruments that are adapted to the problems faced and to leverage work done by partners.

The findings of the 2001 ARDE demonstrate sustained progress in portfolio performance (see figure below) and suggest several directions for future Bank assistance. First, the ongoing updating of the policy framework for investment and adjustment lending offers a good opportunity to offer operational guidance and improve instrument choice. Second, in poor performing low-income countries simple operations, pilot projects and non-financial activities have particular potential to deliver results. Third, for adjustment operations-a growing share of Bank lending-success is more likely when the domestic consensus for reform is strong and other Bank instruments are brought to bear both upstream and downstream of the adjustment process.



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ARDE 2001: Making Choices

Precis  4 pages - 0.3 MB (approx)

Main Report  67 pages - 0.5 MB (approx.)

Supplemental Tables  21 pages - 0.4 MB (approx.)





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