1. Environmental Sustainability: An
Evaluation of World Bank Group
Support
July 2008

2. 2
Environment matters for
development
►Environmental problems are enormous and increasing
• Climate change
• Air and water pollution
• Soil erosion and desertification
• Water scarcity
• Loss of biodiversity
►Developing countries
are severely affected:
• Growth
• Poverty
►Both public
and private
action are needed

3. 3
WBG timeline: Increased attention
since 1990
1970 1980 1990 2000
WB project focus:
"do no harm"
World Development Report
(for Rio summit) (1992)
MIGA: Enhanced project-
level focus from 1998
WB: Increasingly proactive role from 1992
* 4-fold agenda: Safeguards, Stewardship,
Mainstreaming, Global sustainability
IFC: Deepening
attention to project-
level impacts from 1991
WBG: 2001 Environmental Strategy
IFC: Equator Principles
WB: 2003 World Development
Report

4. DevelopmeDevelopme
ntnt
Ruth S.. Guzman
Board Chair, PATLEPAM and Vice-President for
Research and Extension, Rizal Technological
University,

5. What is Development?
DeDevveloeloppmenmentt entails improvement in the
quality as well as quantity of life.
DDeveleveloopmepmenntt is the accumulation of
human capital and its effective
investment in the progress of an
economy.

6. Shifts in Development Paradigms
Economic cum Cultural Progress1920’s – 1940’s
Economic Progress1940’s – 1960’s
Economic Progress cum Rural
Development
1950’s – 1970’s
Integrated Area Development1970’s
Participatory Development1980’s
Sustainable Development1990’s
Exploitation of natural resources
Industrialization as vehicle of econ devt
Recognition of disparity in income
Agri-production and geographic equity
Reversal of TOP–DOWN approach

7. For SSuustastaiinablnablee DDeevveloeloppmemenntt to happen,
the world of nations agreed to focus all
development initiatives towards sustainability
of resources.
iinitiativesnitiatives
• The SStoctockkhohollmComConnvveentiontionn held 30 years
ago. The whole world agreed on the urgent
need to respond to the problem of
environmental deterioration.

8. The Road to RioThe Road to Rio
• An ““EEarartth Sh Suummmmit”it” officially known as the
United Nations Conference on Environment and
Development, was held in June 1992 at Rio de
Janeiro and participated by over 170 states
worldwide (114 of whom were represented by
Heads of States of Governments)
• Publication of the ““BBrurunnddttlalanndd RRepepoort,”rt,” a
landmark report establishing the need for
sustainable development in industrialized and
developing countries.
• Publication of “O“Ouurr CComommmoonn FuFuttuurre”e” by the
UN World Commission on Environment and
Development in 1987

9. Outcomes of the Earth Summit
• convention on biodiversity;
• framework convention on climate
change;
• principles of forest management;
• AAgegenndada 2211;
• the Rio Declaration on Environment and
Development

10. It was agreed that the protection of the
environment, and social and economic
development are fundamental to SSuustastaiinablnablee
DDeevveloeloppmemenntt (based on the Rio Principles).
To achieve such development, the global
program Agenda 21 and the Rio Declaration
to reaffirm global commitment were adopted.
The AAgegenndada 2211 was localized based on the
maxim “Think globally, Act Locally” through our
Philippine Agenda 21.

11. Monterrey Conference on Finance for
Development
Doha Ministerial Conference which
defined for the world a comprehensive
vision for the future of humanity.
World Summit on SSuustastaiinablnablee
DDeevveloeloppmemenntt held at Johannesburg,
South Africa from 2-4 September 2002.

12. What is Sustainable Development?
DDeevveloeloppmemenntt that meets the
need of the present without
compromising the ability of the
future generation to meet their
own needs.
(Brundtland, 1987)

13. What is Sustainable Development?
- it is the harmonious integration of
a sound and viable economy ;
responsible governance;
social cohesion; and
ecological integrity
to ensure that development is a life-sustaining process.
SSuustastaiinablnablee DDeevveloeloppmemenntt = Economic Development
+ Environment Protection
+ Social Reform
+ People’s Empowerment

14. PEOPLE
ENVIRONMENT DEVELOPMENT

15. Elements /Dimensions of
SSuustastaiinablnablee DDeevveloeloppmemenntt
• Political
• Economic
• Institutional
• Technological
• Socio-cultural
• Ecological

16. Parameters of SSuustastaiinablnablee DDeevveloeloppmemenntt
• Maintaining a sustainable
population
• Maintaining productivity and
profitability of environment and
natural resources
Economic
• Adopting environmental
management weapons in policy and
decision making
• Protecting the environment and
conserving natural resources
Ecological
• Promoting propermanagement of
wastes and residuals
• Adopting environment-friendly
technologies
Technological

17. • Empowering the people
• Maintaining peace and order
Political
• Promoting resource access and
upholding property rights
• Promoting environmental awareness,
inculcating env ethics and supporting
env management action
Socio-cultural
• Improving institutional capacity/
capability to manage sustainable
development
Institutional
Parameters of SSuustastaiinablnablee DDeevveloeloppmemenntt

18. PPhhililiippippinnee AAgegennddaa 2121
“Limits to Growth”1971
UN Conference on Human Settlements and
Environment1972
World Commission on Environment and
Development1983
“OurCommonFuture”1987
UN Conference on Environment and
Development1992
Philippine Strategies on Sustainable
Development1989
Philippine Agenda 211996

19. - is our own national agenda for sustainable
development.
- recognizes three key actors in sustainable
development, and their roles in different
realms of society
What isWhat is PPhhililiippippinnee AAgegennddaa 2121 ??
• The Principles of Unity
• The Action Agenda
• The Implementation Strategies

20. Key Actors in Sustainable Development
• GGooververnnmmeenntt is the key actor in POLITY, which
is concerned with democratic governance and
security of human rights.
• CCiviviil Sl Soocicieettyy is the key actor in CULTURE,
which is concerned with the development of
the social and spiritual capacities of human
beings.
• BuBussinineessss is the key actor in ECONOMY,
which is mainly concerned with producing
goods and services to people.

21. Sustainable
Development
Business is the key
actor in ECONOMY,
which is mainly
concerned with
producing goods and
services for people
Government is the key
actor in POLITY, which
is concerned with
democratic governance
and security of human
rights.
Civil Society is the key
actor in CULTURE, which
is concerned with the
development of the social
and spiritual capacities of
human beings.

22. Vision ofVision of PPhhililiippippinnee AAgegennddaa 2121
A better quality of life for all, through the
development of a just, moral, creative, spiritual,
economically vibrant, caring, diverse yet
cohesive society characterized by appropriate
productivity, participatory and democratic
processes, and living in harmony within the limits
of the carrying capacity of nature and the
integrity of creation. (PA 21, Section 1.4, p.12)

23. PPhhililiippippinnee AAgegennddaa 2121
Sustainable Development PrinciplesSustainable Development Principles
Primacy of Developing Full Human Potential
This puts man at the center of all development
efforts.
Holistic Science and Appropriate Technology.
Implies development of appropriate technology to
solve development problems with due
consideration to its impact to society and ecology.
Cultural, Moral and Spiritual Sensitivity.
Considers the inherent strengths of local and
indigenous knowledge, practices and beliefs, while
respecting cultural diversity, moral standards and
the spiritual nature of the Filipino society.

24. Key Concepts and Principles of
SSuustastaiinablnablee DDeevveloeloppmemenntt
Operates on the principle of indivisible world.
Environmental problems cross national
boundaries in such phenomena as acid rain
and global warming.
It does not mean economic stagnation or
giving up economic growth for the sake of the
environment. It should even promote economic
development as a requisite for maintaining
environmental quality.

25. ►SD in agriculture, forestry and the fisheries
sectors involves conservation of land, water,
plant and animal genetic sources, does not
degrade the environment and is technologically
appropriate, economically viable and socially
acceptable. (ADB, 1991)

26. –At the level of the individuals and
communities, SD is a process focused on
people and societies – how they define
needs with reference to their own goals
and the goals they share as members of
communities and nations.
–It is in contrast to development that
focused on resource exploitation to
generate short –term wealth.

27. The Concept of
SSuustastaiinablnablee DDeevveloeloppmemenntt
►The concept of SD is an evolving one. There
is no quick and fast rule towards SD because
of its multi-dimensional and complex nature.
►SD is dynamic and adjusts to the changing
conditions and needs of the time.

28. References
Philippine Business for the Environment, et al. Business Strategies for
Sustainable Development: Philippine Business Agenda 21.
Guzman, Ruth and Guzman, Roger. 2000. Environmental Education for
Sustainable Development. Wisdom Advocates Publishing, Q.C. Philippines.
Soriano, Sr. Luz Emmanuel, Claudio, C. and Fansler, L. 1995. Sustainable
Development: A Philippine Perspective. Phoenix Publishing House, Q.C.
Johannesburg Summit 2002. Key Outcomes of the Summit
Johannesburg Summit 2002. Political Declaration.
http://www.johannesburgsummit.organization/html.document/summit_docs /
1009wssd_pol...10/14/02
Johannesburg Summit 2002. Press Release of the UN Sec. General

29. 29
Key messages
► The World Bank Group has made progress since
1990 as an advocate for the environment
► But treatment of environmental issues in many
WBG country programs remains weak due to
major external and internal constraints
► The WBG needs to increase its engagement and
effectiveness in environmental issues through
– Greater attention in Bank Group and country strategies
– More effective cross-sectoral approaches
– Better measurement of activities and results
– Closer collaboration within the WBG and with partners

30. 30
This evaluation looks broadly at
WBG engagement FY90-07
►Broad coverage: World Bank, IFC, and MIGA
►Evaluation Objectives
– Assessing WBG effectiveness
– Identifying principal external and internal constraints
– Suggesting improvements going forward
►Perspectives: “Do no harm” and “ Do good”
►Methodology
– Literature review
– Portfolio review (variation across WBG due to data availability)
– 9 country case studies

31. 31
The 9 case study countries come
from all regions and a mix of
MICs and LICs
►Together these countries account for 56% of population,
46% of GDP, and over 40% of Bank environmental
lending in developing and transition countries.
East Asia China
Latin America Brazil
Middle East/N. Afr Egypt
Sub-Saharan Africa Ghana, Madagascar,
Senegal, Uganda
South Asia India
Europe/Central Asia Russia

32. 32
Findings

33. 33
World Bank
1. Strategies
• 2001 WBG Strategy
• growing but still inadequate attention in country strategies
• even less in country-led PRSPs
1. Lending and grants
• exact amount unknown – at most 5-10% Bank total
• project performance better over time, but M&E still weak
• weaker performance in Africa
1. Nonlending
• as important as lending
• country environmental assessments: helpful where undertaken
• research influential: WDRs ’92, ’03; Greening Industry

34. 34
World Bank (cont)
4. Mainstreaming
• some improvement but still far to go (poverty, health-environment
links, vulnerability)
5. Partnerships
• needs strengthening within WBG and externally
• some good examples (GEF, Pov-Env. Ptnp. )
5. Global public goods
• less emphasis during evaluation period, though now growing
• some good examples (Montreal protocol, carbon finance)

35. 35
IFC
1. Environmental and social effects of investment projects
• 67% success rate in meeting IFC requirements and performance standards
• weak performance in Africa and in certain sectors
• limited attention to broader context
2. Environmental work quality
• appraisal generally good, supervision of financial intermediaries weak
3. “Doing good” initiatives
• M&E system generated insufficient data or still too early to assess
- Environment & Social Sustainability advisory services
- Equator Principles
Sustainability in IFC corporate strategies since 2001. Until recently
focus has been on “do no harm”. Move to more “do good”.

36. 36
MIGA
MIGA’s focus has been primarily on “do no harm”
Sustainability concept just incorporated in core business
1. Environmental and social effects
• Category A projects: better performance and increased
attention to social issues
• Category B projects: less attention, worse performance
2. Environmental work quality
• Strengthened environmental and social issues in underwriting
New policy and performance standards (2007): Go beyond
safeguards to promote sustainability in guaranteed projects

37. 37
Looking ahead

38. 38
Many constraints need to be
confronted
►Clients (public and private)
• Competing demands (e.g. growth,
energy needs, governance, conflict)
• Insufficient client commitment
• Inadequate institutional capacity
and resources
►World Bank Group
• Competing priorities
• Inadequate staff skills and knowledge networks
• Difficulties of coordination across sectors, across WBG, and externally
• Difficulties of taking long-term view and of assessing country-level impacts
beyond individual projects

39. 39
The evaluation has four broad
recommendations
1. Elevate environmental sustainability as WBG
priority -- not just more of the same, but a
“transformational” change
2. Move to more integrated, cross-sectoral and area-
based approaches and strengthen staffing
3. Greatly improve ability to measure, monitor, and
evaluate activities and their results
4. Continue to strengthen partnerships

40. 40
What would success look
like?
►A widely-shared understanding of the critical role
of environmental sustainability to development
►Clear alignment behind key strategic objectives
►Strong and effective WBG capacity
►Effective internal and external collaboration
►An emphasis on continual learning (from both
success and failure)…

41. 41
…and a more sustainable
world for all

42. Thank you
Evaluation available at:
www.worldbank.org/ieg/environmentalsusta
inability
Evaluation authors:
John Redwood (IEG-WB)
Jouni Eerikainen (IEG-IFC)
Ethel Tarazona (IEG-MIGA)