The evaluation concludes that PBO effectiveness in PFM, PSE and energy is broadly satisfactory, especially in terms of achieving “landmark reforms”. However, it also highlights the difficulty of determining the Bank’s influence, noting that the degree of influence varies by sector and area of focus and providing positive examples from the energy sector. Management takes note of these findings, which support its view that PBOs are relevant instruments to effectively support critical reforms, including for the High 5 areas. Management also agrees with the lesson on the importance of carefully identifying the appropriate areas of focus of the operation and ensuring active engagement with countries and partners.

The evaluation examines the sustainability of the reforms PBOs supported in energy, PSE and PFM, and found that it was assured in just 40% of the cases. Management takes particular note of this finding. Sustainability is critical, and achieving it is a perennial challenge faced not only by the Bank, but also by its peer MDBs that provide PBOs. It requires, first and foremost, strong and long-term country commitment to reform implementation. To address this issue, Management agrees with the evaluation recommendation—that increased use of the programmatic approach is beneficial not only to achieving reforms, but also to sustaining them. Management is also of the view that sustainability is an issue that should feature regularly in development partners’ in-country consultations. It considers the lessons provided in this regard to be pertinent and useful.