The World Bank's Country Policy and Institutional Assessment : An IEG Evaluation
The World Bank's Country Policy and Institutional Assessment (CPIA) assess the conduciveness of a country's policy and institutional framework to poverty reduction, sustainable growth, and the effective use of development assistance. The CPIA enters the calculation of country performance r...
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| Format: | Publication |
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Washington, DC: World Bank
2013
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| Online Access: | http://hdl.handle.net/10986/13547 |
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okr-10986-13547 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
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en_US |
| topic |
accountability accounting ADB Agriculture Aid Effectiveness Bank loans Bank management Banking Sector benchmark benchmarking businessmen Competitiveness conflicts of interest consultation process contract enforcement corruption country experts crime Debt developed countries Development Assistance discretion econometric analyses Economic Cooperation economic growth economics economics literature Effective Use Empirical analysis Environmental Environmental Policies environmental regulations exports factoring financial management Financial Sector financial services financial stability fiscal policy Foreign Exchange Foreign Exchange Regime GDP good governance governance challenges governance performance governance ratings Gross domestic product Gross national product Gross national product per capita Inequality Inflation institutional framework insurance International Development investigation judicial independence macroeconomic management Macroeconomic Performance macroeconomic stability microfinance money laundering multilateral development banks national income pensions Performance Ratings polices political economies political participation poor governance portfolio private sector development problem loans procurement Product Markets property rights public debt public expenditures public sector management regulatory framework Resource Allocation Resource Mobilization resource use Revenue Mobilization rule of law Safety Nets social policies subsidiary sustainable growth theft trade liberalization Trade Policy transparency unemployment urbanization value added Worldwide Governance Indicators |
| spellingShingle |
accountability accounting ADB Agriculture Aid Effectiveness Bank loans Bank management Banking Sector benchmark benchmarking businessmen Competitiveness conflicts of interest consultation process contract enforcement corruption country experts crime Debt developed countries Development Assistance discretion econometric analyses Economic Cooperation economic growth economics economics literature Effective Use Empirical analysis Environmental Environmental Policies environmental regulations exports factoring financial management Financial Sector financial services financial stability fiscal policy Foreign Exchange Foreign Exchange Regime GDP good governance governance challenges governance performance governance ratings Gross domestic product Gross national product Gross national product per capita Inequality Inflation institutional framework insurance International Development investigation judicial independence macroeconomic management Macroeconomic Performance macroeconomic stability microfinance money laundering multilateral development banks national income pensions Performance Ratings polices political economies political participation poor governance portfolio private sector development problem loans procurement Product Markets property rights public debt public expenditures public sector management regulatory framework Resource Allocation Resource Mobilization resource use Revenue Mobilization rule of law Safety Nets social policies subsidiary sustainable growth theft trade liberalization Trade Policy transparency unemployment urbanization value added Worldwide Governance Indicators Independent Evaluation Group The World Bank's Country Policy and Institutional Assessment : An IEG Evaluation |
| description |
The World Bank's Country Policy and Institutional Assessment (CPIA) assess the conduciveness of a country's policy and institutional framework to poverty reduction, sustainable growth, and the effective use of development assistance. The CPIA enters the calculation of country performance ratings that, since 1980, have been used to allocate International Development Association (IDA) resources to eligible client countries. This evaluation was undertaken at the request of Board members to assess the appropriateness of the CPIA as a broad indicator of development effectiveness and as a determinant of the allocation of IDA funds. As indicated in the approach paper, this evaluation reviews the effects of the CPIA ratings on IDA allocations but does not review the IDA allocation formula itself. The evaluation finds that the CPIA content broadly reflects the determinants of economic growth and poverty reduction identified in the economics literature, but some criteria need to be revised (such as the trade criterion that places much greater emphasis on imports than exports) and streamlined, and one criterion (assessment of disadvantaged socioeconomic categories other than gender) added. The CPIA ratings also correlate well with ratings of similar indicators, and more so for International Bank for Reconstruction and Development than for IDA countries. In part, this could be caused by the CPIA exercise's practice over the past several years of taking into account a country's stage of development, which also means that the CPIA is no longer an index in the true sense of the word. It is difficult to establish an empirical link between the CPIA and economic growth outcomes, although CPIA ratings are found to be positively associated with aid effectiveness in the narrower sense-specifically, the performance of Bank loans. The report lays out four recommendations: disclose International Bank for Reconstruction and Development ratings; discontinue the "stage of development" adjustment to the ratings; review and revise the content and clustering of the criteria; and discontinue the current aggregation of the criteria into an overall index. |
| format |
Publications & Research :: Publication |
| author |
Independent Evaluation Group |
| author_facet |
Independent Evaluation Group |
| author_sort |
Independent Evaluation Group |
| title |
The World Bank's Country Policy and Institutional Assessment : An IEG Evaluation |
| title_short |
The World Bank's Country Policy and Institutional Assessment : An IEG Evaluation |
| title_full |
The World Bank's Country Policy and Institutional Assessment : An IEG Evaluation |
| title_fullStr |
The World Bank's Country Policy and Institutional Assessment : An IEG Evaluation |
| title_full_unstemmed |
The World Bank's Country Policy and Institutional Assessment : An IEG Evaluation |
| title_sort |
world bank's country policy and institutional assessment : an ieg evaluation |
| publisher |
Washington, DC: World Bank |
| publishDate |
2013 |
| url |
http://hdl.handle.net/10986/13547 |
| _version_ |
1764424539175911424 |
| spelling |
okr-10986-135472021-04-23T14:03:10Z The World Bank's Country Policy and Institutional Assessment : An IEG Evaluation Independent Evaluation Group accountability accounting ADB Agriculture Aid Effectiveness Bank loans Bank management Banking Sector benchmark benchmarking businessmen Competitiveness conflicts of interest consultation process contract enforcement corruption country experts crime Debt developed countries Development Assistance discretion econometric analyses Economic Cooperation economic growth economics economics literature Effective Use Empirical analysis Environmental Environmental Policies environmental regulations exports factoring financial management Financial Sector financial services financial stability fiscal policy Foreign Exchange Foreign Exchange Regime GDP good governance governance challenges governance performance governance ratings Gross domestic product Gross national product Gross national product per capita Inequality Inflation institutional framework insurance International Development investigation judicial independence macroeconomic management Macroeconomic Performance macroeconomic stability microfinance money laundering multilateral development banks national income pensions Performance Ratings polices political economies political participation poor governance portfolio private sector development problem loans procurement Product Markets property rights public debt public expenditures public sector management regulatory framework Resource Allocation Resource Mobilization resource use Revenue Mobilization rule of law Safety Nets social policies subsidiary sustainable growth theft trade liberalization Trade Policy transparency unemployment urbanization value added Worldwide Governance Indicators The World Bank's Country Policy and Institutional Assessment (CPIA) assess the conduciveness of a country's policy and institutional framework to poverty reduction, sustainable growth, and the effective use of development assistance. The CPIA enters the calculation of country performance ratings that, since 1980, have been used to allocate International Development Association (IDA) resources to eligible client countries. This evaluation was undertaken at the request of Board members to assess the appropriateness of the CPIA as a broad indicator of development effectiveness and as a determinant of the allocation of IDA funds. As indicated in the approach paper, this evaluation reviews the effects of the CPIA ratings on IDA allocations but does not review the IDA allocation formula itself. The evaluation finds that the CPIA content broadly reflects the determinants of economic growth and poverty reduction identified in the economics literature, but some criteria need to be revised (such as the trade criterion that places much greater emphasis on imports than exports) and streamlined, and one criterion (assessment of disadvantaged socioeconomic categories other than gender) added. The CPIA ratings also correlate well with ratings of similar indicators, and more so for International Bank for Reconstruction and Development than for IDA countries. In part, this could be caused by the CPIA exercise's practice over the past several years of taking into account a country's stage of development, which also means that the CPIA is no longer an index in the true sense of the word. It is difficult to establish an empirical link between the CPIA and economic growth outcomes, although CPIA ratings are found to be positively associated with aid effectiveness in the narrower sense-specifically, the performance of Bank loans. The report lays out four recommendations: disclose International Bank for Reconstruction and Development ratings; discontinue the "stage of development" adjustment to the ratings; review and revise the content and clustering of the criteria; and discontinue the current aggregation of the criteria into an overall index. 2013-05-24T20:43:20Z 2013-05-24T20:43:20Z 2010-09 978-0-8213-8427-5 http://hdl.handle.net/10986/13547 en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC: World Bank Publications & Research :: Publication Publications & Research |