(Constant 2010 US$ millions)
Figure 5.1
Regional Sector Units Are Delivering More With a Smaller Share of Regional Bank Budgets as Overheads Grow
1,200 1,000 800
11%
14%
23%
22%
14%
16%
15%
16%
17%
17%
18%
21%
21%
21%
22%
21%
21%
21%
600 400
CMU BB Actuals 66%
64%
65%
63%
FY02
FY03
FY04
FY05
64%
62%
62%
62%
61%
FY06
FY07
FY08
FY09
FY10
200 -
Regional Functions BB Actuals
SMU BB Actuals
Fiscal Year Source: World Bank databases.
increases to 59 percent since the Regions and networks together absorb 85 percent of trust funds. The Bank has become more reliant on external financing through trust funds, the allocation of which falls outside the Bank’s annual budgeting process under the matrix system. External financing supports a growing proportion of the Bank’s resources–from an annual average of 19 percent in FY02-04 to 26 percent in FY08-10.20 From FY02-04 to FY08-10 the share of budget resources from BETFs has increased from 10 percent to 16 percent in the Regions, 32 to 44 percent in network anchors, and 23 to 26 percent in DEC and WBI combined. Trust funds have become critical to the Bank’s core business and are, in effect, a way of maintaining the appearance of a flat budget ceiling while allowing sector staff and managers to cope with the constraints in the Bank’s budgeting process under the matrix system to fill funding gaps. Network anchors have become more reliant on trust funds than the Regions. In FY08-10 the Regions taken together received 49 percent of trust funds and 49 percent of overall Bank budget funding. Network VPUs received a greater share of trust funds (36 percent) than their 9 percent share of overall Bank budget (Figure 5.2). BETFs financed an average of 16 percent of regional budgets and 44 percent of network anchor budgets, with more than half of the SDN anchor’s expenditures coming from trust funds as it manages over 70 percent of all network anchor trust funds. The five largest trust funds managed by the network anchors—which alone amount to almost 50 percent of network trust funds—are the Water and Sanitation Program, Energy Sector Management Assistance Program, Carbon Fund, and Global Facility for Disaster Reduction and Recovery in SDN, and the Consultative Group to Assist the Poorest in FPD.
Institutional Issues and Organizational Structure
105