Overview of IFAD9 completionIFAD10 MTR and Results16 February 2017

• Overview (slides 3 – 7)

• Bigger (slides 8, 10)

• Better (slides 9, 11 – 13)

• Smarter (slides 14 – 28)

• Moving forward (slide 29)

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Today’s presentation

Purpose of the MTROVERVIEW

• IFAD10 Midterm Review highlights IFAD9 (2013-2015); andthe first year of IFAD10 (2016)

• The Review assesses IFAD’s performance compared to theIFAD10 commitments

• The review finds that IFAD is on track for most areas, withchallenges however in some.

3

Increasing ruralpeople’s access to

markets

Strengthening theenvironmental

sustainability andclimate resilience of

rural people’s economicactivities

OVERVIEW

75% of the world’s hungry poor live inrural areas

4

Increasing RuralPeople’s Productive

Capacity

StrategicFramework

Because… …IFAD is……global demand for food is expected to increase byover 60% by 2050

…agriculture and rural livelihoods are responsible forover 30% of employment globally

…small farms account for up to 80 per cent of foodproduced in Asia and sub-Saharan Africa

…fragile states and economies are home to 1.4billion people – 20% of the world’s population, with43% of those in absolute poverty.

…5 million to12 million ha are lost annually to severedegradation in developing countries due to humanactivity and climate change

IFAD9 IFAD10Delivered on:

• Operational Effectiveness• Institutional Effectiveness• Financial Capacity and Management• Enhanced Results Management

Remaining challenges in project efficiency:• strengthened EFA during design

- Logframe procedures issued• reduced delays in the project cycle

- Improvements but often dependent on countrycontexts

• strengthened national M&E systems- M&E certification programme to be launched in2017.

On track for:• Strategic Vision• Operational Effectiveness• Institutional Effectiveness• Results Measurement Framework• Financial Framework

5

OVERVIEW

Replenishment commitments mostlydelivered or on track

Minor delays in:• Additional resource mobilization (UCCs)• PoLG versus administrative budget ratios• Financial management monitoring• Improved gender balance• Key business process costing• KM monitoring and reporting

95% delivered 89% on-track

OVERVIEW

External assessments confirm progressand agree on challenges

Making Progress• Results Measurement

Focus on results for more impact at the country level (Making DevelopmentCooperation More Effective)

• Mainstreaming climate change and genderGreen Climate Fund’s recognition of IFAD’s focus on climate changeUN SWAP rates IFAD highly on gender equality and women's empowerment

• Mobilizing investmentsRecognition of efforts by Member States at the Third International Conference onFinancing for Development and referenced in the Addis Ababa Action Agenda

• Knowledge managementIFAD’s KM strategy commended as the most comprehensive and sustainableapproach by the United Nations Joint Inspection Unit

Remaining Challenges• Transparency ► focus on disclosure and accountability

• Efficiency and Value for Money ► deliver more with less and faster

• Fragile states ► appropriate targeting and focus on sustainability

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Expanding the program of work to meet an increasing and moresophisticated demand.

Achieving higher impact per dollar invested through smarter design,partnerships, and differentiated country approaches.

Getting closer to clients while reengineering internal processes forgreater efficiency and development effectiveness.

BIG

GE

RB

ETT

ER

SM

AR

TER

OVERVIEW

IFAD10 at mid-term: beyond businessas usual

7

IFAD9 IFAD10

Year 1 Year 2 Year 3 Year 1 Year 2 Year 3

29% 25% 46% 26% 24%50%

8

BIGGER

Delivering a record pipeline throughmore proactive portfolio management

Distributing the pipeline to managing slippages and avoidingbunching

A significant number of operations is designed the year before delivery,weaving design costs across the cycle

0

1

2

3

4

5

6

7

8

2010 2011 2012 2013 2014 2015 2016

BETTER

Striving to ensure that the pace of disbursementsand cofinancing keep up with commitments

Cofinancing and disbursements are consistently higherin Middle Income Countries

Cumulative approvals

Cumulative cofinancing

Cumulative disbursements

9

US$ billion

Prog

ram

me

of lo

ans

and

gran

ts (P

oLG

)

US$3.2US$3.07

US$2.85

IFAD8 IFAD9 IFAD10

US$25.5 m

US$28.3 m

US$31.1 m

78.7 m111.5 m

112.75 m

BIGGER

Enlarging our investments to reach anincreasing number of rural poor

10

Outreach

Sub-Saharan Africa

Rest of the World

US$ billion

BETTER

Managing a larger portfolio with flatadministrative resources

11

Admin costs

Current Portfolio

Portfolio managed perUS$1 of admin cost

0

10

20

30

40

50

60

70

0

1

2

3

4

5

6

7

2013 2014 2015 2016* 2017

Continue to increasing efficiencies requires adjustingthe business model

US$

Most FragileSituations

Upper Middle IncomeCountries

Low Income andLow Middle Income

countries

• Borrow on highlyconcessional or blendterms (IDA eligible)

• 90 percent of IFAD10financing through corereplenishmentcontributions

BETTER

Meeting country demands throughdifferentiated approaches

80% of rural poor IFAD serves are in Low Income and LowMiddle Income countries

• Borrow on ordinaryterms

• IFAD engages themas key shareholders,sources of South-South cooperation,and global actors

• Most borrow on highlyconcessional or blendterms (most are LICsand LMICs)

• IFAD addressescauses of fragility inagricultural sector

Targeting conditions of extreme poverty, remoteness and weakinstitutional capacity

12

Growing share ofprojects includingclimate finance

Increasing share ofprojects that arenutrition-sensitive

Gender consistentlyrated 4 or better atdesign

Cross cutting issues are being mainstreamed but adjustments are needed tofully overcome silo approaches

13%

52%

7%

21%

20102012

20132015

86%

89%

BETTER

Designing smarter operations to fosterinclusive rural transformation

13

SMARTER

Strengthening financial management to supportIFAD’s evolving financial architecture

14

Financial Operations Department revamped to manage the growing complexityof IFAD’s portfolio

Comprehensive, rules-based approach to

borrowingFeasibility of borrowing

from capital marketsStructure

•Separate FinancialServices ManagementDivision (FMD) andAccounting andController Division (ACD)

•Better cash flow planningand risk managementcapabilities

•Separate RiskMonitoring andCompliance function

•Engaging closely withmember states

•Preparatory work totransact derivatives forcurrency hedging

•Single Currency Lending

•Assess IFAD’s preferredcreditor status to borrowat attractive rates

•KfW FrameworkAgreement in IFAD9

•Approval of SovereignBorrowing Framework

•Two major borrowingtransactions for US$$326million equivalent (KFWand AFD)

SMARTER

Managing over 80% of financingfrom country offices

15

International Aid TransparencyInitiative (IATI)

IFAD9 IFAD10

Other standard-settingtransparency initiatives

PBAS

SMARTER

Heightening transparency to reachworld class standards

Publishing since 2013 but onlyon commitments

report on more(e.g., disbursements)and more frequently (quarterly)

Aidflows reports IFAD dataon commitments,disbursements and debt

exploring more activepartnerships

disclose the Rural SectorPerformance Scores only

more systematic disclosure ofallocations and underlyingdata

Disclosure of operationaldocuments

2014: 51% supervisionreports disclosed, 70 dayson average

2016: 67% supervision reportsdisclosed, 35 days on average

disclose Project CompletionReports

16

17

SMARTER

Reinforcing fiduciary and procurementoversight

Pioneering accreditation of financial management consultants

Piloting an automated system to track non-objections

Mainstreaming technology in the waywe do business

18

OperationsDocuments Center

Operations Dashboard The Operational ResultsManagement System

Speeding-up and modernizing businessprocesses to become data-driven

SMARTER

Nurturing our workforce through the CareerDevelopment Framework

SMARTER

19

Redoubling efforts to increase number of womenin senior positions

Academy andTargeted Programs

Structured andcontinuous

professionaldevelopment

TalentManagement

Detect our bestpotentials andgrow others

StaffMobility

Greater integrationbetween headquarters

and country offices

Moving from results measurement toresults-based management

SMARTER

IFAD10Impact linked to

Strategy

DevelopmentEffectivenessFramework

Results-basedmanagement

IFAD9Reach to Impact

IFAD9 ImpactAssessment

Initiative

Resultsmeasurement

20

IFAD9 Impact Assessment Initiative(funded projects 2010-2015)

Proactively managing our investments toboost global efforts to achieve SDGs

SMARTER

21

SMARTER

Instilling a results culture across the institutionand in member countries

IFAD’s Development Effectiveness Framework

22

Tracking evidence ofproject performance

Evidence providinglessons for future

projects

Evaluable project

Diagnosis/solutionProject logic/

Theory of changeEcon and Fin AnalysisLogFrame with SMART

indicatorsM&E and impact assessment

approach clarified

Efficiency and effectiveness

Project logic/Theory of change assessed

LogFrame assessmentM&E and impact assessment

resultsLessons learned

Execution performance

AWPBMonitoring outputs and

outcomesReporting LogFrame

indicatorsAssessing project results and

risks

Project designedincorporating evidence

DESIGN IMPLEMENTATION COMPLETION

Project design report(President’s report)

Project status andresults report

Project completionreport

Start upMidterm

review

Automated, Tracked in Real-Time through Dashboard

Restructuring policy

Strengthening the focus on generationof results

23

SMARTER

• Curriculum design• Certification• Scholarships for PMU

staff• Five global CLEAR

teaching centres• Available to IFAD staff,

consultants, etc.

• Theory of change andLogFrames

• M&E as managementtool

• Economic and financialanalyses

• Impact assessment

CLE

AR tr

aini

ng a

nd c

ertif

icat

e

CPM

aca

dem

y

Improving monitoring and evaluation capacityamong IFAD staff and in country

24

SMARTER

Strategic Framework SDGs COSOPs Safeguards Mainstreaming Diagnosis based on evidence Project logic/indicators Monitoring and evaluation approach Economic and financial analysis Impact assessment

CPM

CPMLeadAdvisor

Development EffectivenessChecklist

Fostering the use of evidencein the portfolio

Move to Co-Responsibility

25

SMARTER

Proposed solution

Underlying causes

Development problem

ProjectLogFrameWith CoreIndicators Result

Inputs Activities Outputs Outcomes Impact

Impact Assessments

Core Indicators (RIMS)CorporateResultsMeasurement

All projects

15% of projects and projection

26

Linking project monitoring and evaluationto corporate results reporting

SMARTER

Operational Programmingand Effectiveness (OPE)

Unit• Programming and pipeline• Operational procedures• Portfolio management• Self-assessment

• M&E and LogFrames• Economic and financial analysis

• Internal results coordinationand reporting

• Harmonization with partners

Regions• Portfolio management• Self assessment• Agents of change• Link to corporaterequirements

Research andImpact Assessment• Impact assessment• Portfolio analysis• Link to corporateimpact assessmentrequirements

Enhancing self-evaluation qualityand governance

27

SMARTER

SMARTER

Pursuing ambitious targets based on asystematic assessment of our portfolio

IFAD10 Results Measurement Framework-Updated

28

MOVING FORWARD

Deepening ongoing reforms to increasethe scale of impact

• Further improving institutional efficiency and transparency

• Speeding-up operations and ramping-up disbursements whilemainstreaming thematic priorities

• Continue strengthening financial capacity and sustainability

• Fostering a results culture that embraces evidence-baseddecision-making

• More systematically integrating knowledge and non-lendingactivities with lending

29

Thank you

Any questions?