Washington, Oct 13 (IANS): A joint World Bank-International Monetary Fund forum has approved a new World Bank Group Strategy to shift from a focus on stand-alone projects to a "development solutions culture" of "what works and how to deliver it."
The new strategy has been designed to better execute a bold plan to end extreme poverty by 2030 and promote shared prosperity endorsed by the World Bank Group's member countries six months ago.
"For the first time in the history of our organization, we have a strategy that leverages the strengths of our entire organization .and aligns all our work for a common purpose," said World Bank Group President Jim Yong Kim after a meeting of the Development Committee.
The new strategy calls for greater efficiency in operations; more investment in knowledge, technical skills, and information technology; and the breaking down of silos within the institution that currently inhibit collaboration and knowledge-sharing.
In a communiqué released at the close of World Bank-IMF 2013 annual meetings here the development committee urged special attention to countries and regions with the highest rates of poverty, fragile and conflict-affected situations, and unique challenges facing small states.
The committe noted that while the global poverty rate has been cut in half since 1991, not all developing countries have seen equal progress.
About half of low-income countries are classified as fragile and conflict-affected, and they are home to a growing share of the world's poor. Economic growth has been accompanied by rising inequality in many developing countries, with the majority of the poor now living in middle-income countries.
The two goals set by the Bank Group are reducing extreme poverty globally to 3 percent by 2030, and boosting incomes for the bottom 40 percent of the population in developing countries.
The new strategy approved today says the Bank Group will have to become more flexible to meet the goals. It will have to provide faster service, be able to "crowd in resources, experience, and ideas more effectively through partnerships and leverage its global role by deepening global engagements that are aligned with the two goals."
The Bank Group will also have to be more selective in its efforts, customize its support to respond to country demands, and increasingly promote public-private partnerships.
Kim said in the next three years the Bank Group would identify a minimum of $400 million in administrative savings. That savings would be reflected in future budgets. Savings will come from reduced travel and facility costs, simplifying bureaucracy and strategically reviewing staffing.
"We welcome measures to utilise existing resources better and strengthen the WBG's financial capacity to align it with the ambition of its strategy," the Development Committee said.
The Bank Group has "an important role to play in delivering global development results, supporting countries with their specific development challenges and helping them eradicate poverty and build resilience to future financial, economic, social, and environmental challenges," it said.