Economics & Development

Azerbaijan Investment Holding (AIH) was established as a public legal entity under the laws of Azerbaijan where shareholder powers in relation to SOEs are split between the President and key government officials. This report highlights the World Bank's efforts to enhance AIH's governance and operational efficiency. The initiative includes webinars and workshops on topics such as strengthening the ownership function, corporate governance, public procurement, and privatization. AIH, established under Azerbaijan's laws, is governed by a Supervisory Board chaired by the Prime Minister. The World Bank provided AIH with international best practices, peer exchanges, and expert consultations to improve transparency, accountability, and performance of State-Owned Enterprises (SOEs). The initiative also included a special advisor on public procurement who provided hands-on consultations and training. The overall goal is to enhance AIH's ability to manage SOEs effectively and align with international standards.

The development objective of Accelerating Sustainable and Clean Energy Access Transformation In Malawi (Ascent Malawi) Project is to increase access to sustainable and clean energy in Eastern and Southern Africa. This project has five components. 1) The first component, Last Mile Grid Connection, has the following sub-components: (i) Last Mile Grid Connection with PBCs; and (ii) Last Mile Grid Connection. 2) The second component, Off-grid Connection through Solar Home System, focuses on scaling up off-grid solar energy solutions, targeting households and communities beyond the reach of the current national grid. The component is expected to connect 811,000 households (3.4 million people) at an estimated cost of US$116 per connection. 3) The third component, Energy Access for Schools and Health Facilities, focuses on supporting the electrification of schools and health facilities. 4) The fourth component, Clean Cooking Solutions, aims to catalyze the expansion of the market for Tier 4 and 5 modern energy cooking solutions, primarily through the deployment of electric, liquefied petroleum gas (LPG), and pellet-based cookstoves, while supporting a sustainable, private-sector-driven clean cooking market throughout the country. 5) The fifth component, Technical Assistance and Capacity Building, focuses on supporting both ESCOM and the MoE in acquiring the necessary capacity and analytical tools to achieve the required tasks under the Project.

Ratings for the Mining and Environmental Remediation and Improvement Project for Zambia were as follows: outcomes were moderately unsatisfactory, the Bank performance was moderately unsatisfactory, and the monitoring and evaluation quality was modest. Some lessons learned included: With sensitive topics such as severe contamination by an industry and health impacts on the local population, projects need to have a strong communication strategy to manage reputational risks. Such strategy can include, among other measures, having technical information and data transparently available to the public throughout the project, project publishing periodic updates in the form of press releases and annual or semi-annual reports, inviting public comment and oversight as needed, and incorporating regular feedback mechanisms into the design. Institutional capacity strengthening efforts should encompass all relevant sector agencies and should rely on systematic sector institutional assessments, and, if necessary, support relevant changes to the existing institutional frameworks and regulations. Transfer of responsibilities for project-sponsored equipment, infrastructure, and know-how should be a part of these institutional capacity-building efforts to ensure sustainability in the long run. One of the successes of the project was the introduction of local education programs at schools and public awareness campaigns about lead poisoning risks and prevention among children and community leaders. The programs, when they are mainstreamed into curricula, are able to reach a large portion of the population, which can apply this knowledge in their households, thus reducing instances of recontamination.

This program document proposes a Second Health Sectors Development Policy Loan (DPL) operation totaling US75 million dollars equivalent for Bosnia and Herzegovina (BiH), which forms an integral part of broader World Bank assistance to the health sectors in BiH. Criteria for selecting policy areas and pillars reflect the authorities’ demand and the World Bank’s value-added and comparative advantage in the health sector. Extensive collaboration with the authorities on these reforms has occurred since 2019. The objective of this proposed operation, the second and last in a programmatic series, is to improve the financial sustainability of the healthcare sectors and the quality of care in the Federation of Bosnia and Herzegovina (FBiH) and Republika Srpska (RS). This DPL complements the ongoing Health Systems Improvement Project (P171150) and benefits from the complementary technical assistance (TA) provided by the World Bank and other development partners to support the overall strengthening of the health sectors. This holistic approach by the World Bank is further complemented by the EU4Health program 2021-2027, signed with the BiH authorities in July 2024. The first DPL in the programmatic series was approved by the Board of Executive Directors in March 2023.

This work aims to offer a strategic approach to policymakers when undertaking digital transformation reforms in education and skills development systems, with a focus on “how.” It builds on the World Bank education vision framework offered in realizing the future of Learning by unpacking the digital cross-cutting area of “Invest wisely in technology”, looking into how this may be done to maximize impact at scale for all. The authors promote cautious optimism and techno realism, clarifying how the education and skills sector can use digital technologies to its advantage by being proactive, strategic, and evidence-based, considering carefully why to use digital and in what conditions the existing and emerging technologies might be positively leveraged. It is widely recognized that one size does not fit all and that policymakers need to have a laser focus on learning, weighing in contextual needs, and purposefully using the next marginal investable dollar on digital solutions to fulfill education objectives equitably at scale for all. Along with policymakers in government who are the primary audience for this work, it is intended to enable dialogue and critical partnerships across industry, academia, researchers and multilateral, and World Bank staff to support and deepen our country engagements as countries increasingly expand the digital reach of public education services.

People in many parts of North Macedonia are exposed to more toxic particulate matter air pollution than their neighbors in Western Europe. The burning of solid fuels for heating in homes and other buildings is a main driver of high ambient concentrations of particulate matter air pollution, particularly during the winter months. The high levels of air pollution in the country have significant negative effects on human health and the economy. The Government of North Macedonia has recognized air quality management (AQM) as a key building block toward sustainable economic development, acknowledging the link between AQM and energy policy and its significant co-benefits for climate change mitigation. The cost of inaction is high, and the need for more effective AQM is evident. The objective of this institutional and functional review (IFR) is to provide insights and develop recommendations for strengthening the legal, regulatory, and institutional framework and capacity for AQM, enabling national and local authorities to deliver better air quality for their citizens.

Ratings for the Health and Nutrition Services Access Project for Lao Peoples Democratic Republic were as follows: outcomes were satisfactory, the Bank performance was satisfactory, and the monitoring and evaluation quality was substantial. Some lessons learned included: performance-based approaches that enhance accountability, strengthen the focus on underserved regions and groups, and address gaps in service delivery. Health centers benefited from the approach, which promoted autonomy and responsibility. Going forward, several strategic priorities should be considered to further fine-tune and improve the current scheme: (i) ensure that fund flow mechanisms are agile as delays impede implementation effectiveness; (ii) improve data quality and reliability, which are critical for tracking progress and verifying results; (iii) consider similar modalities for empowering district authorities through fund transfers, giving them the flexibility and authority needed to enhance their performance; (iv) provide continual training and mentoring, particular with the shift from DLIs to PBCs; (v) conduct an in depth equity analysis and unpack the gains and remaining gaps once the disaggregated data from the latest Laos Social Indicator Survey 2023 report are available; and (vi) draw lessons from the experience with direct fund transfers to health centers and ascertain which aspects can be adapted as part of the government’s broader efforts. Given that investment operations have a limited life span, it is advisable to seek government commitment from inception to take over financing of project supported activities. The results-based schemes supported under HANSA heavily rely on external financing, as was the case in other countries that embarked on similar approaches. This adds to the importance of progressively ensuring that the government assumes responsibility to foster continuity and ensure sustainability. Looking ahead, during the implementation of HANSA II, the task team may consider planning for sustainability from an earlier stage by identifying specific actions and timelines and preparing transition plans.