Annex B
STATEMENT ON DFID'S COLLABORATION WITH THE
WORLD BANK GROUP
INTRODUCTION
1. This statement summarises current and
possible future collaboration between DFID and the World Bank
Group on urbanisation and poverty.
PARTNERSHIPS WITH
THE WORLD
BANK ON
URBAN DEVELOPMENT
2. DFID has partnered with the World Bank
in recent years on urban development issues, including urban poverty,
through a number of global, regional, and country level activities.
DFID's funding has helped the Bank leverage its own resources
for technical assistance, analytical work, and parallel project
financing, resulting in a deeper engagement on policy issues and
a strengthened project pipeline. These particularly include activities
in Africa and South Asia, with collaboration also in other regions.
Work with the Bank on water and sanitation has been important
in addressing the needs of the urban poor through the provision
of basic services.
3. DFID's support for the World Development
Report 2009, Reshaping Economic Geography, included about
£450,000 for preparation of the report (£250,000)
and the production of the innovative film, Seeing Development
in 3D (£200,000), used extensively for dissemination
of the Report's key messages.
4. DFID has provided $350,000 through
Cities Alliance (see Annex C) for the Bank's work in Africa, on
"Mainstreaming Urban in Poverty Reduction Strategies."
This was used to support analytical work on urbanisation/urban
policy/urban poverty issues and dissemination in five African
countries (Ethiopia, Ghana, Tanzania, Kenya, and Mozambique).
The funds were used to mobilise additional World Bank and donor
resources. The studies were used for in-country dialogue on urban
issues within the context of wider host-government policies and
have provided the basis for possible new World Bank investment
operations in Tanzania, Kenya, and Ethiopia. In Mozambique, the
analytical work is helping the Bank prepare a new Country Assistance
Strategy which will include a new urban project.
5. Urban LandMark[39]
and the World Bank Institute have signed a Memorandum of Understanding
setting a framework for developing collaborative projects. Each
has committed US$375,000 in parallel funding in the first
year. The aim is to build urban knowledge and capacity to effectively
respond to challenges and opportunities faced by African urban
policy makers. This will include access to international best
practice, increased understanding of their national urban realities
and efforts to rapidly increase urban management capacity.
6. DFID's grant ($200,000) through Cities
Alliance for Ghana provided support for economic and sector work
being developed by the World Bank with the Government. The work
is focussed on municipal finance, local investment climate assessment
and land issues. This is feeding into the World Bank's country
dialogue and project pipeline.
7. DFID has collaborated extensively with
the World Bank in India in their work in several states. This
includes funds for project preparation ($0.8 million) and
institutional strengthening in the Ministry of Housing and Urban
Poverty Alleviation. In addition, DFID is providing parallel support
($20 million) to the urban poverty component of the Bank's
technical assistance project. This will support (i) a policy unit
inside the Ministry; (ii) training centres and training courses
for city officials; and (iii) pro-poor approaches to service delivery.
8. In the Indian States of Madhya Pradesh
and West Bengal, DFID's city institutional strengthening work
is being followed up by the Bank with the preparation of investment
lending for the improved delivery of services. A DFID trust fund
is helping the World Bank prepare their Urban Water Supply and
Sanitation Business Plans in the states of Maharashtra, Rajasthan,
and Haryana. Once completed, these plans will be used for project
preparation and other project proposals.
9. A recent DFID grant for Pakistan was
used by the World Bank for the "Punjab Property Tax Workshop",
through which experts worked with the Government and presented
their work. The outcomes include a medium term tax policy, a framework
for a decentralised property tax policy and administration and
a draft new property tax law. Follow up work is expected to result
in a World Bank technical assistance loan or a project component
in the Large Cities Programme for implementing tax reform.
10. In Afghanistan, the World Bank and DFID
are each providing 50% (about $200,000) of the funding for a sub-national
Governance and Service Delivery Specialist, based in Kabul for
two years. The specialist is working closely with Bank and DFID
staff, Government and other donors under the overall guidance
of Bank task team leaders, in order to strengthen urban local
governments and their accountability to urban communities.
11. Other work with the World Bank includes
support in Indonesia through the DFID supported Decentralization
Support Facility. This is aimed at supporting the Government's
decentralisation efforts, in services delivery through project
financing, procurement and knowledge management.
12. In the West Bank and Gaza, DFID is working
with the World Bank in the provision of technical assistance in
housing, including for the Ministry of Public Works and Housing
on a framework for public private partnership for housing development.
This includes defining criteria for public investment in external
infrastructure for housing developed by private sector, the development
of a housing policy and mortgage finance.
POSSIBLE FUTURE
COLLABORATION WITH
THE WORLD
BANK
13. The World Bank is currently undertaking
an Urbanisation Review as a follow up to the World Development
Report 2009 in the preparation of a new Urban Strategy. This
will provide new analytical tools to assist the Bank in its engagement
with countries interested in understanding and responding to urbanisation
challenges. The Review will initially be applied to selected countries
to assess the urbanisation trends and approaches to addressing
the possible impacts.
14. The Bank considers that six strategic
challenges face urban policy makers and leaders; i) Cities and
Economic Growth; ii) City Management and Local Government; iii)
Urban Poverty and Slum Upgrading; iv) Urban Planning, Land and
Housing; v) Intergovernmental Fiscal Relations and Municipal Finance;
and vi) Urban Environment and Climate Change.
15. Potentially DFID could collaborate further
with the World Bank on some of these strategic challenges, as
well building on the existing regional and country work. As well
as the Urbanisation Review, several new products are to be launched
by the Bank, to be implemented in countries wishing to address
pressing urbanisation and poverty problems. The Bank is seeking
partnerships with interested donors on;
— The Global City Indicators Programme
(GCIP) and Vulnerability Assessment, and
— A new Urban Governance Programme.
39 Urban LandMark is based in Pretoria and was set
up in May 2006 with DFID funding of £1 million
over two years. It aims to influence policies and practices in
South Africa to improve poor people's access to well-located urban
land. Back
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