Growth and Productivity in Agriculture and Agribusiness

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Support of Multicountry Operations (IEG 2007b); A Decade of Action in Transport: An Evaluation of World Bank Assistance to the Transport Sector, 1995-2005 (IEG 2007a); Using Knowledge to Improve Development Effectiveness: An Evaluation of World Bank Economic and Sector Work and Technical Assistance, 2000–2006 (IEG 2008n); An Impact Evaluation of India’s Second and Third Andhra Pradesh Irrigation Projects: A Case of Poverty Reduction with Low Economic Returns (IEG 2008e); Using Training to Build Capacity for Development: An IEG Evaluation of Project-based and WBI Training (IEG 2008o); Environmental Sustainability: An Evaluation of World Bank Support (IEG 2008b); Climate Change and the World Bank Group, Phase I: An Evaluation of World Bank Win-Win Energy Policy Reforms (IEG 2009c); Water Management in Agriculture: Ten Years of World Bank Assistance (IEG 2006e); Water and Development: An Evaluation of World Bank Support, 1997–2007 (IEG 2010f); Evaluating a Decade of World Bank Gender Policy, 1990–1999 (IEG 2005b); Gender and Development: An Evaluation of World Bank Support, 2002–08 (IEG 2010b); The World Bank’s Country Policy and Institutional Assessment: An Evaluation (IEG 2010g); and Impact Evaluations in Agriculture: An Assessment of the Evidence (IEG 2010c). Stakeholder Interviews Bank staff and managers, both at headquarters and fieldbased, were interviewed during country studies and project assessments on various aspects of the Bank’s support to the agricultural sector in client countries. In addition, 23 previous and current country directors covering 28 randomly selected countries responded to a structured interview designed to get their feedback on the Bank’s contribution to agricultural development and the institutional factors that determine it. Additional Analysis To assess performance of the evaluation portfolio, all closed projects that were rated and posted by IEG as of December 2, 2008,4 were added, resulting in a total of 243 projects in the closed evaluation portfolio. IEG ICR reviews of the closed evaluation portfolio were reviewed. Of the 243 projects, 231 had a valid rating on overall outcome and 202 projects had a valid rating on sustainability and risk to development outcome. The data were matched with Country Political and Institutional Assessment indicators and country incomelevel data (based on the 2007 gross national income [GNI] per capita, calculated using the World Bank Atlas method).5 Regression analysis was undertaken on the rated projects in the closed evaluation portfolio to explain differences in overall outcomes and sustainability (see appendix table D.1 for details on variables used in the regressions, tables D.2 and

D.3 for regression results, and table D.4 for bivariate relationships between several explanatory variables and project outcomes). Impact studies of the Peru Irrigation Subsector Program (fiscal 1997) and the Malawi Community-Based Rural Land Development Project (fiscal 2004) were also carried out and informed this evaluation (IEG 2009f, g). In addition, the evaluation drew on the Agricultural Science and Technology Indicators of the Consultative Group on International Agricultral Research (CGIAR) to measure agricultural technical capacity within countries. These indicators were particularly useful in exploring the differences in technical capacity among agriculture-based, transforming, and urbanized economies. World Bank ARD human resources data were also analyzed for reporting on staff skills.

IFC Methodology The methodologies are based on five building blocks. Portfolio Review To describe International Finance Corporation (IFC) agribusiness operations and to evaluate sector strategies, IEG has adopted an agribusiness supply-value chain approach from farmers to markets. IEG has also rated and evaluated in-depth IFC projects in the food and agriculture sector (F&A), carried out by the Agribusiness Department (CAG) and by its joint ventures with other IFC investment departments. For projects earlier than 2002, this report has also drawn on earlier IEG-IFC work, because it had evaluated projects approved in fiscal 1990–2001. The supply-value chain evaluation approach is a concept from business management that was first described and popularized by Michael Porter in his 1985 bestseller, Competitive Advantage: Creating and Sustaining Superior Performance. In a supply-value chain of activities, products pass through, gaining some value. The value-chain constitutes a good base for identifying the most critical constraints preventing the materialization of development opportunities in a holistic way, and not merely shifting the constraint from one link to another. This evaluation approach is similar to the one used by IEG-IFC in 2003 and by the EBRD (2008). The investment projects in the F&A sector have been desk reviewed using IEG’s Mini Expanded Project Supervision Report (Mini XPSR) framework, and IEG’s additionality framework. IEG’s risk intensity framework has been used to determine how the risk profile of the investment projects in the F&A sector has shifted over the review period (IEGIFC 2008c). There were 275 stand-alone and parent projects; repeat and subprojects such as B–loans (see endnote 13), loan increases, risk management/swaps, and rights issues

Appendix A: Evaluation Methodology and Instruments

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