The World Bank group, among the
world's largest development institutions, is a major
source of financial and technical assistance to developing
countries around the world. In fiscal 2009, the World Bank
group sponsored 767 projects with a total commitment of
$58.8 billion, distributed in credits, loans, grants, and
guarantees. This fiscal year's funding marks a 54
percent increase over the previous fiscal year and a record

This year's annual review of
development effectiveness (ARDE) is being written against
the backdrop of a global financial crisis, declining growth,
and massive fiscal stimulus efforts to revitalize markets.
Demand for greater development support from the World Bank
has grown, along with concerns that resources be used
effectively and efficiently to achieve their development
objectives. This ARDE focuses on the Bank's performance

The purpose of this guidance note is to
bridge precisely identify how to implement World Bank
resettlement policies in the context of infrastructure
projects affecting South Asian largest cities, with a focus
on the impacts on poor areas and slums. The guidance note is
intended as a tool to help decision makers in Government
agencies and in the Bank, particularly in respect of the
main aspects: 1) methods to assess and evaluate resettlement

This assessment of poverty and
inequality comes at an important juncture for Kenya. The
December 2007 elections and subsequent pronouncements of the
newly formed Grand Coalition have underlined the salience of
these issues to ordinary Kenyans, and for policy makers. The
violence in early 2008 highlighted the importance of
addressing poverty and inequality as major goals in their
own right, but also for instrumental reasons, as major goals

Although there has been considerable
recent interest in micro-credit programs, rigorous evidence
on the impacts of forming self-help groups to mobilize
savings and foster social empowerment at the local level is
virtually non-existent, despite a large number of programs
following this pattern. The authors use a large household
survey to assess the economic and social impacts of the
formation of self-help groups in India. They find positive

This paper evaluates the impact of the
Thailand Village and Urban Revolving Fund on household
expenditure, income, and assets. The revolving fund was
launched in 2001 when the Government of Thailand promised to
provide a million baht (about $22,500) to every village and
urban community in Thailand as working capital for
locally-run rotating credit associations. The money about
$2 billion in total was quickly disbursed to locally-run

Size, age, sector, and productivity are
commonly cited as factors determining a firm s survival.
However, there are several dimensions of the investment
climate in which the firm operates that affect whether it
continues in business or exits. This paper uses new panel
data from 27 Eastern European and Central Asian countries to
test the importance of five areas of the business climate on
firm exit: the efficiency of government services, access to

Well-functioning groups enforce social
norms that restrain opportunism, but the social structure of
a society may encourage or inhibit norm enforcement. This
paper studies how the exogenous assignment to different
positions in an extreme social hierarchy - the caste system
- affects individuals' willingness to punish violations
of a cooperation norm. Although the analysis controls for
individual wealth, education, and political participation,

Poor governance is a major impediment to
achieving development outcomes of the forest sector. It
results in losses of income, employment, government
revenues, and local and global environmental services.
However, at present, no comprehensive guide to reforming
forest governance has been developed. Although usually it is
relatively easy to recognize that the forest sector in a
country is failing to deliver all its potential benefits,

This paper addresses two vital concerns
in the debate on adaptation to climate change. First, how
can countries prepare to manage the impact of climate-change
induced natural disasters? Second, how can countries ensure
that they have the governmental institutions required to
manage the phenomenal challenge of adaptation to climate
change? A range of economic and institutional measures are
tested for their potential effects on natural disaster

This paper compares and contrasts the
performance of rural and urban manufacturing firms in
Ethiopia to assess the impact of market integration and the
investment climate on firm performance. Rural firms are
shown to operate in isolated markets, have poor access to
infrastructure and a substantial degree of market power,
whereas urban firms operate in better integrated and more
competitive markets, where they have much better access to

This paper uses two recently completed
surveys of individual entrepreneurs (farmers and
microentrepreneurs) and registered enterprises (agricultural
and nonagricultural) operating in Mexico s rural sector to
provide new evidence about the factors influencing the
incidence of credit constraints and investment behavior. To
measure the incidence of credit constraints, the authors use
self-reported information on whether economic agents have a