Evaluation of Transnational Programs at the IDB

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Jul 2012
This evaluation assesses IDB's role in contributing to the coordinated solution of transnational challenges during the period 2000-2011. The evaluation found that the relevance and effectiveness of IDB's Technical Cooperation program has been limited - in particular the Regional Public Good (RPG) program. The efficiency of the transnational Technical Cooperation program has been reduced by specific characteristics of the RPG program, though the RPG team has been successful in mitigating some of these challenges through strong execution. Even in technical cooperation that financed pilots, asymmetric ownership among countries has been a serious constraint to sustainability. Transnational operations face a pervasive misalignment of incentives. Without concessional funds, countries have limited incentives to undertake these costly operations. The IDB should carefully consider the pros and cons of deepening its engagement in transnational projects and related technical cooperation. In the event it chooses to do so, it should take steps to identify ways to enhance concessionality, and adapt IDB processes, structures, incentives, and budget to facilitate the implementation of transnational projects. It should also enhance the effectiveness of the transnational technical cooperation program, which should continue at some level of funding.