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p. 11 of 14 BACK | NEXT I. Introduction II. Taking Stock of Progress III. The Current Development Environment in the Region IV. The Changing Role of the Bank V. The Bank's Strategic Directions FRO 1995-1998 VI. Organizational Implications and Capacity Building Requirements of the Bank A. Key Operating Principles B. Revised Business Practices C. Revised Accountability System D. Management Information System E. Implementation

The Bank's Medium-Term Strategic Framework : VI. Organizational Implications and Capacity Building Requirements of the Bank

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B. Revised Business Practices

43. The Bank will establish revised business practices in support of its new operating emphasis.

1. A formal policy agenda by sector and by DMC will be agreed to with each DMC as part of the annual CAP; systematic methodologies will be adopted for identifying the policy agenda by sector, and for assessing its potential implications and impact on the achievement of the Bank's strategic development objectives; the Programs Departments, with concerned Projects Departments, will take accountability for the respective sectoral agenda in the DMC; the Economics and Development Resource Center (EDRC), the Office of Environment and Social Development (0SD), and the Strategy and Policy Office (SPO) will play major support roles.

2. A long term capacity building program in key sectors in each DMC will also be agreed to as part of the annual CAP, linked to the agreed upon policy agenda and the project investment program; capacity building assessment approaches will be developed and adopted Bankwide, together with models for capacity building projects and programs; and the use of the Bank's advisory TAs will be streamlined to ensure appropriate use of these funds for the capacity building program. The Programs Departments will be responsible for establishing and incorporating the capacity building program into the CAP; the Projects Departments will be responsible for the design and formulation of the program by sector; SPO, OESD, and EDRC will support the Programs and Projects Departments technically. with SPO coordinating Bankwide monitoring and reporting.

3. A RETA program to support an identified regional cooperation agenda, which has been developed in consultation with concerned DMCs will be established covering issues such as trade promotion, technical cooperation, management of common natural resources, and regional dialogue on macroeconomic and sectoral policies. The Programs Departments will be responsible for establishing the regional cooperation agenda for their respective subregions, with a supporting RETA program; it will be implemented by the Programs and Projects Departments, as appropriate, with the assistance of EDRC, OESD, and SPO.

44. The above three areas, and particularly the ones relating to policy support and capacity building, have generally and traditionally been referred to as "economic and sector work" (ESW) in Bank parlance. In Bank documents, however, ESW is usually identified, financed, monitored and reported on as an input to ongoing DMC assistance. The expected outputs from such investments in ESW are not normally monitored or reported on. This MTSF now makes the policy support and capacity building program for each DMC referred to in para. 43, the specific objective of the Bank's ESW, which will henceforth be formally identified, monitored, and reported upon. With this new emphasis on policy support and capacity building, and the application of the key operating principles enunciated above, it is understood that the Bank will need to increase its resources for ESW, and strengthen accountability for related results.

45. The existing interdepartmental Staff Working Group on the Review of the Bank's Business processes has begun reviewing the proposed revisions in business practices identified above, and will articulate and detail them for Bankwide use uring 1995. Appropriate guidelines for staff will be developed.

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