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p. 27 of 30 BACK | NEXT Executive Summary I. The Setting II. Key Variables Affecting Project Quality III. Assessment of Current Bank Practices and Areas for Improvement IV. Findings, Recommendations and Action Plan V. Implications and Monitoring Arrangements A. Organizational Implications B. Staffing Implications C. Budgetary Implications and Trade-offs D. Monitoring Arrangements

Report of the Task Force on Improving Project Quality : V. Implications and Monitoring Arrangements

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A. Organizational Implications

119. An important recommendation of the Task Force is the combination of programs and projects functions under a single unit of responsibility in order to improve linkages between country economic and programming documentation (COSS, COPP and ERBOP) and project design, and to establish accountability for project quality. The Steering Committee for a Review of the Bank's Organization (the Steering Committee), which has already been established by the President, will need to examine the various alternatives and decide on the most appropriate organizational structure to implement the recommendation.

120. Another important recommendation of the Task Force is the alignment of the roles of the special units (AGSD, PSSU and PRSP), OENV, EDRC and ROs to provide stronger operational support. New operational directions for the special units to implement the Bank's strategic agenda have often not been clearly understood in the field and have resulted in considerable "second guessing" as to their intent. An effective way to address this issue is to involve the special units more intensively in operations. While a reasonable start has been made to include membership from some of the special units on project processing, programming and country strategy missions, these interactions could be intensified. Suitable procedures will therefore have to be evolved to enhance the interactions between operational and policy making units in the Bank without affecting the objectivity of the latter.

121. Chapter II has shown that there is a need to review, revise and consolidate the Bank's training and other activities in support of the development of institutional capacities in DMCs in order to improve their quality and impact, and thus to enhance the sustainability of the Bank's operations in the DMC concerned. While the development of a comprehensive Bank policy on capacity building will be the prerequisite for further action in this regard, a focal point for capacity development will be required to assume responsibility for the Bank's further capacity building policy/program development, monitoring and review; assessment of country needs and resource analysis; and coordination and evaluation of activities. This should also be examined by the Steering Committee.

122. The growing complexity of the Bank's strategic agenda requires sophisticated economic and social analysis at the level of country operations. EDRC must revise as appropriate the guidelines on economic, social and sensitivity analysis of projects, and participate in missions and project work actively to demonstrate how the new procedures and requirements can be met. Closer cooperation between EDRC and the operational departments and offices is also needed in the context of the Task Force's recommendation for upgrading the Bank's ESW.

123. The Task Force has recommended reorienting the role of CPSO by reducing its involvement in routine procurement matters and redirecting its mission to one of providing policy and analytical support, and by intensifying and enlarging its inputs in country-focused implementation reviews such as the CPRMs. This recommendation will have far-reaching organizational implications. It is therefore necessary that the future role of CPSO be carefully evaluated as part of the work of the Steering Committee.

124. The organizational issues concerning the future role of the ROs center mainly around the need to delegate more responsibility and authority to them in order better to realize their potential for contributing to more effective project implementation. First, it should be decided whether the delegation should be across all sectors or should focus on specific sectors. The Task Force has suggested that the former approach may be adopted. However, given the relatively small size of some ROs, it is not clear that the recommendation, even if sound from an operational point of view, is cost effective. Second, the issue of the appropriate structure of delegation is linked with the issue of the pattern of staffing. The Task Force has recommended that a larger number of national staff be employed in the ROs. This could be a cost-effective solution, but the availability of an adequate number of qualified candidates in the various DMCs, particularly the PIDCs, cannot be assumed. It is possible that country-specific solutions could emerge, and the decision on the structure of delegation would depend on whether or not national staff are available in the various disciplines.

125. The Task Force has recommended several changes in the Bank's business practices with the objective of decentralizing operations and decision making. It has also called for a shift in the corporate culture from the operational focus on loan approvals to project quality throughout the project cycle. It is necessary that the Bank undertake a comprehensive review of its business practices and procedures with a view to streamlining and eliminating unnecessary procedures and processes, focusing on achieving increased economy and efficiency of effort, and delegating more authority to the extent possible.

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