How does the World Bank partner using Trust Funds and Umbrella 2.0 Programs?
The complexity and urgency of the world’s challenges require meaningful collaboration among members of the development community and other stakeholders to realize the goals of ending extreme poverty and promoting shared prosperity.
The World Bank works with a growing number of Development Partners from around the world to help deliver on its strategy and contribute to the achievement of the Sustainable Development Goals. From the international coalition of donors and clients that constitute IDA, through engagement with UN agencies, international non-governmental organizations, foundations and civil society, to an increasing focus on leveraging private capital, the World Bank recognizes the transformative power of partnership when new ideas, perspectives and experiences are combined the necessary financial resources.
Partnering with the World Bank is enabled through a variety of financial instruments and coordination mechanisms. The appropriate partnering approach is selected based on the objectives of the initiative, the nature of the activities being supported, and the role(s) of the World Bank and its partners.
Trust funds (TF), and the Umbrella 2.0 Programs through which they can be organized, are the most commonly used funding vehicles for partnerships in which the World Bank (WB), Development Partners, and other stakeholders work together to tackle a specific development issue or find new ways to approach problems at the global, regional, or country level.
Trust funds are essential to a stronger, better, more flexible World Bank. Trust fund resources complement World Bank operations, expanding their scope and reach and supporting their quality. They promote increased development effectiveness and enable the World Bank to provide assistance when its ability to lend is limited, including in fragile and emergency situations and for countries in arrears and non-member countries. Trust Funds also contribute to the World Bank’s knowledge agenda by financing close to two-thirds of its advisory services and analytics products as well as technical advisory services for clients. Trust Funds attract new sources of finance and promote innovative financial solutions in support of the global public goods agenda, including combating climate change and addressing the challenges of fragility, conflict, violence, forced displacement and pandemics.
This brief online module (30 minutes), designed specifically for our Development Partners, aims to introduce the use of Trust Funds and how these are used to support the World Bank’s work. The recently launched Umbrella 2.0 Program approach is also described. As well as rationalizing the TF portfolio, the Umbrella Program delivers unified reporting, a comprehensive results framework, an increase focus on communication and visibility and a governance mechanism that brings the WB and Development Partners together at the strategic level. This approach will simplify and streamline how the WB works with Development Partners and reduce the costs associated with managing the TF portfolio. Umbrella Programs offer the potential to increase the potential of our collective efforts to deliver results. As well as introducing key concepts and a common vocabulary, the module is intended to ensure that Development Partner counterparts and technical staff (both HQ and Country-based) are positioned for successful dialogue with WB counterparts and can best align work programs for maximum impact.