The impact of the NTF-PSI can be summarised as follows:
- The NTF-PSI has provided WBG staff with funding opportunities for innovative activities at an early stage when other funding
was difficult to secure. The flexible funding structure of the fund allows the fund to evolve thematically and to promote
cross cutting work, which has resulted in a portfolio that is currently heavily focused on climate change.
- NTF-PSI activities in the portfolio continue to provide client countries with technical assistance aimed at helping them make
better informed choices, enhance capacity and adopt cutting edge solutions. This is applicable in particular to climate change
mitigation and adaptation, as well as to improvement of the investment climate and private sector development. For example,
the first part of funding to the Conflict Affected States in Africa (CASA) addressed investment barriers in Sierra Leone.
NTF-PSI funds were used for supporting the government in improving the business, enabling environment by simplifying the tax
policy, reducing compliance costs, widening the tax net, facilitating formalization and job creation, and reducing avenues
for corruption. This has impacted the time to pay taxes (reduction by 10% since inception), informality (reduction of 20%)
and tax collections (increased to 12% of GDP by FY11).
- The NTF-PSI has contributed to improvements of the investment climate by strengthening of capacity and institutions of national
and local governments, supporting development of small and medium enterprises, reducing barriers to investments and ensuring
access to finance. For instance, one program funded by NTF-PSI assists client countries in improving their supply chains for
businesses to survive and thrive in global markets. Through this program, NTF-PSI has influenced reforms and impacted countries’
import and export procedures and thereby improved these countries’ access to world markets.
- Increased capacity and empowering of client entities are significant components of activities in the NTF-PSI portfolio. For
example, in the Philippines, one funded activity implemented a series of information and education campaigns and capacity
building events on community levels to identify the appropriate adaptation measures to climate change. This led local teams
to craft their own climate adaptation strategies to address specific vulnerabilities in their area. Local governments followed
up by expanding their policies to institutionalise their adaptation strategy and its implementation in development plans.
- The NTF-PSI has increased capacity and knowledge internally at the WBG. The fund has also improved collaboration between various units in the WBG, and between the World Bank and the International Finance Corporation (IFC).