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New Areas 3New Countries

Learning from 7the Field

Work in Progress: 9Multi-Year Grants

PCF in Numbers 11

Post-Conflict FundA Trust Fund for Assisting Conflict-Affected Countries

Development Grant FacilityThe World BankAugust 2004

Post-Conflict FundANNUAL REPORTFiscal Year 2004

his report provides an overview of the Post-Conflict Fund (PCF) in FY04* including newlyapproved grants and other activities undertaken by the secretariat. The PCF was established in1997 to support innovative work in uncertain and fragile conflict-affected societies which mayoften not be possible under regular World Bank projects. The PCF supports planning, pilotingand analysis of ground-breaking activities through funding to governments and partner organi-

zations in the forefront of this work including nongovernmental organizations, United Nationsagencies, transitional authorities, governmental institutions and civil society groups. The empha-sis is on speed and flexibility in activities promoting the transition from conflict to peace andeconomic growth without sacrificing quality. Since 1997 the PCF has received an accumulatedamount of $57.5 million from the World Bank Development Grant Facility (DGF) and an addi-tional $5.8 million from bilateral and multilateral donors.

This year the PCF secretariat and committee also took on administration of the $25 million LowIncome Countries under Stress (LICUS) Trust Fund. Most of the eligible countries are conflict-affected so administration by the PCF secretariat under the guidance of the PCF committee hasensured consistency and complementarity in the World Bank’s approach to these vulnerableclients.

1

* The World Bank Fiscal Year 2004 (FY04) covers the period from July 1, 2003 to June 30, 2004.

In FY04 the PCFallocated $8.5 million

through 16 newly approvedgrants, 2 additional allocations to

existing grants, and disbursed atotal of $10.6 million across thecurrent portfolio. As of July 15, 2004,the PCF had approved a total of$66.7 million for one hundred andthirty-six grants. Of the total

approved, $58.7 million hasbeen committed and

$56 million has beendisbursed.

T

2

Mountains Program for Advancing ConflictTransformation (NMPACT) coordinationmechanism. It focuses on communityempowerment through building partnershipbetween parties in conflict and local authori-ties. The grant consists of two components:(1) a pilot community empowerment fund;and (2) the establishment of a participatorymonitoring and evaluation system. This proj-ect was approved in December 2003 for $1.5 million over FYs 04-06 and is beingimplemented by UNDP Khartoum andNMPACT.

Philippines

The Mindanao Reconstruction and Development Fund (MRDF)

This grant resulted from the PhilippinesGovernment’s request for World Bank assis-tance in the establishment of, and contribu-tion to, a multi-donor trust fund for post-conflict reconstruction in Mindanao. ThePCF’s financial contribution to the MRDF willprovide start-up resources and catalyze otherdonor contributions. The grant will also cover

3

During FY04 thePCF engaged in new

areas and countr ieswhile maintaining its sup-port to on-going operationsin thirty-eight conflict-affected countries. Someexamples of new activi-

ties funded by thePCF include:

Information on all past and current PCF grants can be found in the PCF Grant Database at:www.worldbank.org/PCF

Iraq

Micro Credit to Iraqi Widows

This grant assists young widows with childrenrecently affected by conflict to restore theirlivelihoods. The project will improve theincomes of widows in the city of Diwaniyahby providing them with micro credit to starttheir own businesses or with training todevelop or upgrade the skills needed to enterthe local job market. This project could beextended elsewhere in Iraq as the need forsuch assistance is urgent and country-wide.The $50,000 grant is expected to be fullyimplemented within 6 months. The IraqiWidows Organization is carrying out theproject which has resulted in the first dis-bursement of in-country Bank assistance of itskind in the reconstruction program.

Sudan

The Nuba Mountains Community Empowerment Project (CEP)

The CEP finances community-led recon-struction efforts and support to the Nuba

New AreasNew Countries

the cost of establishing the MRDF, the designand implementation of several initial sub-pro-jects, capacity building of key stakeholdersand a communications program. A total ofabout $40-50 million is expected to be lever-aged. This project was approved in December2003 for $650,000 and is executed by theWorld Bank.

Guatemala

Peace and Development in Baja Verapaz Project

This project will promote and build dialoguebetween rural actors and the Government as ameans of addressing peace and development inrural communities. It has three components:(i) to provide conflict prevention and resolu-tion training for local village officials; (ii) tosummarize and compile previous studies con-ducted in the region to determine the wealth ofparticipatory development; and (iii) to supporta two-day peace and development conferencefor all parties involved. The conference willprovide an open forum to discuss the develop-ment agenda for Baja Verapaz and the rele-vance of the Peace Accords. This project wasapproved in February 2004 for $60,000 and is being implemented by the Archdiocese ofLas Verapaces.

Côte d’Ivoire

Community Reintegration Pilot Project

After a politically turbulent few years, Côted’Ivoire sunk into civil war following anuprising by part of the army in September2002. The conflict was of low intensity but

still managed to divide the country into two.In September 2003, the PCF approved thispilot project that aims to develop and testeffective models of community-based reinte-gration and reconciliation in the region ofBouaké (center-north part of the country). Itfunds community sub-projects and initiativesto promote social cohesion as well as studiesto gain a better understanding of displace-ment and social vulnerability created by theconflict. The $538,690 grant is being imple-mented by CARE USA.

Central Asia

Regional Perception Survey of Conflict Prevention and Cooperation

The grant is designed to increase cooperationand integration in Central Asia, as well as tomitigate conflict in the region by funding aregional survey on attitudes toward conflictprevention and cooperation. It will create abaseline for future monitoring of public per-ceptions of efforts to foster integration andcooperation within and between the fiveCentral Asian countries of Kazakhstan,Kyrgyz Republic, Tajikistan, Turkmenistanand Uzbekistan. One of the key issues to besurveyed is how various stakeholders perceivethe break-up of the Soviet Union and theopportunities, costs and benefits of regionalcooperation that may arise. The results willprovide input to the World Bank’s policy andcountry assistance strategies (CAS) and theUNDP’s Human Development Report inCentral Asia. This $99,700 grant is financedunder the Swiss contribution to the PCF andimplemented by Counterpart International.

4

5

%%%

%%%

%%%

%%%

%%%

%%%

Country

Global

Congo-Brazzaville

Timor Leste

Congo-Brazzaville

Timor Leste

Comoros

Côte d’Ivoire

Côte d’Ivoire

Guatemala

Côte d’Ivoire

Sudan

Mindanao/Philippines

Sierra Leone

Comoros

Burundi

Iraq

Central Asia

Implementing Agency

Harvard Program in RefugeeTrauma

FAO

Ministry of Planning & Finance

UNDP

Ministry of Education, Culture,Youth, and Sports

UNDP-Comoros

UNICEF

CARE-USA

Archdiocese of Las Verapaces

Ministry of Finance/CNDDR (Com-mission Nationale pour le DDR)

UNDP

World Bank-executed

National Committee for DDR

UNDP-Comoros

Fondation pour l’Unité, la Paix etla Démocratie

Iraqi Widows Organization

Counterpart International

Grant Title

Mental Health Recovery of Post-Conflict Societies

Emergency Support for the Integration of UnemployedYouth into the Agricultural Sector in the Republic ofCongo

Policy Preparation for Military Veterans

Community Action for Reintegration and Recovery ofYouth and Women

Leadership Capacity Building for Economic Development(LED)

Social and Economic Reinsertion of Anjounese ex-Militia

Reintegration of Children Associated with the ArmedGroups and Forces

Community Reintegration Pilot Project

Peace and Development in Baja Verapaz Project

Support to establishing National Program for Disarm-ament, Demobilization and Reintegration (DDR) Program

Nuba Mountains Community Empowerment Project

Mindanao Reconstruction and Development Fund(MRDF)

Independent Evaluation of DDR Program

Transitional Support to Comoros Economic Management

Support to the Reintegration of Returning Refugees andDisplaced People

Micro Credit to Iraqi Widows

Regional Attitudinal Study of Conflict Prevention andCooperation in Central Asia

Amount USD

250,000

500,000

70,000

500,000

250,000

50,000

247,850

538,690

60,000

100,000

1,505,160

650,000

75,000

250,000

100,000

50,000

99,700

* Includes new grants and additional allocations to the existing grants actually approved in FY04 (July 2003–June 2004). The list does not includeFY04 allocations approved in earlier years.** Includes new grants approved in FY04 (July 2003–June 2004).

PCF Grants

Approved in FY04*

Since FY04, the PCF is responsible foradministering theLICUS Trust Fund.

%%%

Country

Liberia

Comoros

Liberia

LiberiaI

Implementing Agency

Mercy Corps

UNDP-Comoros

Ministry of Finance

World Bank-executed

Grant Title

Community Empowerment Project

Capacity Building support to the Comorian TransitionProcess

Support for Economic Management & DevelopmentStrategy

Public Financial Management Reform

Amount USD

1,177,670

99,400

1,035,000

465,000

LICUS Grants

Approved in FY04**

6

7

Below is a summary of activities and products—PCF Occasional Notes, Independent Eval-uations, Mid-Term Reviews and SpecialReports—intended to capture operationalexperience and best practices from PCF-financed projects and to improve the tech-niques and tools that enable us to learn fromthose projects.

Reviews of PCF Portfolios in Timor Leste, Afghanistan and theDemocratic Republic of Congo

The Post-Conflict Fund in Timor Leste:Portfolio Performance and Review of Ex-perience, June 2004, was undertaken by arepresentative of the World Bank’s Develop-ment Grant Facility (DGF), the main sourceof World Bank funding for the PCF. Thereview found that the PCF played a decisiverole at “key juncture in Timor reconstruction”by providing quick funding and allowing theWorld Bank to engage rapidly in the country.PCF grants offered a “roadmap” for key andstrategic interventions responding to long-standing needs as well as unforeseen issues.

Activities financed by the PCF ranged fromneeds assessment, capacity building for lead-ership, demobilization, veterans issues andopportunities for youth. The review alsofound that even if PCF grants catalyzed some co-financing, they didn’t mobilize theexpected level of resources for longer-termreconstruction, implying the need for moreresources through an expanded PCF or moreflexible use of IDA.

The Reviews of PCF Portfolios in Afghan-istan and the Democratic Republic ofCongo drew similar findings to those emerg-ing from the Timor review. In these countries,PCF grants were instrumental in addressingpressing needs and strategic issues and inallowing timely World Bank engagement.

The Somalia Socio-Economic Survey,Watching Brief Report No. 1, 2003, fi-nanced through a PCF grant to UNDP, is theoutcome of a nationwide, multi-sector house-hold survey and provides statistics on demo-graphic and housing characteristics, access tobasic services, household income and employ-ment, modes of communication and women’s

These and other resourcescan be found in the Learningfrom the Field section at: www.worldbank.org/PCF

In an effort to bettercap ture and sha re

knowledge generated byPCF grants, the PCF Sec-retariat emphasizes learningby disseminating best prac-tices and innovative ap-proaches from on-going

and executedPCF grants.

Learning from the Field

7

participation in family decision makingamong many other things. This house-hold survey is the first of its kind inSomalia for over two decades. TheSomalia Reproductive Health SurveyReport (Draft) 2002-2003, WatchingBrief Report No. 2, 2004, financed byUNFPA with additional support from aPCF grant to UNDP, is the product of ahousehold survey on reproductive healthwith special reference to vulnerable pop-ulation of Somalia. The data relates tofemale reproductive health aspectsincluding fertility, mother and childhealth care, female genital mutilationand female knowledge of HIV/AIDSamong other things.

From Displacement to Empowerment:Working with those Directly Affectedby the Armed Conflict in Mindanao,Philippines External Evaluation,October 2003, assesses implementationof the Mindanao Social Assessment andthe pilot project on community-leveldevelopment financed by a PCF grant.This evaluation discusses in detail theopportunities and lessons learned fromworking with displaced and conflict-affected populations in Mindanao.

Evaluation Report of Two Rehabilita-tion Programs in Kisangani, Demo-cratic Republic of Congo, March 2004,assesses the advantages and pitfalls of twodifferent approaches in undertaking reha-bilitation activities in Kisangani and itssurrounding areas: one adopted a com-munity-level labor intensive approach,the other targeted the private sector.

Collaboration between PCF andCARE International, March/July 2004.The PCF Secretariat also piloted the RealTime Evaluation (RTE) methodology ina PCF grant in Côte d’Ivoire in a part-nership with CARE International, in anattempt to test the benefits of RTE for a development project in a conflict-affected country.

The PCF Secretariat also participated inthe supervision mission of Georgia SelfReliance Fund (GSRF) for InternallyDisplaced Persons ($1,186,554 includ-ing $850,000 of contributions fromSwitzerland, UNHCR and UNDP). TheGSRF’s objective was to pilot conceptsfor improving the living conditions ofinternally displaced persons (IDPs) inGeorgia by enhancing their self-reliance,integration and community cohesion,through supporting income generationand community development. The GSRFfinanced a number of micro-grants ap-proved by GSRF Steering Committeewhich included representatives ofGovernment and donor agencies. Themicro-grants have had a tremendouspositive impact on displaced and localpopulations and made a big change inpeople’s living conditions, psychologicaland physical state, as well as in theirability to become economically indepen-dent and self-reliable. However, GSFRhas been less successful as a pilot whichwould pave the way for a larger broad-based initiative addressing the IDPsproblem in a comprehensive manner, as it is not likely to be scaled up in theabsence of political consensus on resolu-tion of the IDPs issues.

8

Knowledge from PCF Grants

In FY04, PCF grants produced a variety ofindependent evaluations, mid-termreviews and other relevant documentsextracting knowledge from on-going orpast projects. These documents are a valu-able source to practitioners inside and out-side the World Bank offering best practicesand lessons learned often in new areas ofinvolvement for the conflict and develop-ment agenda. The following are the evalu-ation reports completed in this fiscal year.

1. Democratic Republic of Congo:Evaluation Report of Two RehabilitationPrograms in Kisangani (in French),Democratic Republic of Congo, March 2004.

2. Republic of Serbia and Montenegro: CanThings Come Together Again? EvaluationReport of the Southern Serbia MunicipalImprovement and Recovery Program,January 2004.

3. Democratic Republic of Congo: Programof Demobilization and Social andEconomic Reinsertion of Vulnerable Ex-Combatants, Evaluation Report,September 2003.

4. Nigeria: Conflict Analysis in Nigeria,Independent Evaluation, February 2004.

5. Sri Lanka: Landmine Action Project,Independent Evaluation, November2003.

In addition, several independent evalua-tions and mid-term reviews of PCF grantsin Burundi, Timor Leste, Somalia, NorthernAlbania and Kosovo, and Colombia are tobe completed in the months ahead.

PCF Grants Evaluations and other relateddocuments are available at our website’sLearning from the Field section.

LEARNING FROM THE FIELD

9

Some PCF grants under implementation arepresented below showing the diversity of ap-proaches and activities implemented by ourpartners.

Northern Albania & Kosovo

Supporting Conflict Prevention and Social Cohesion through Early Childhood Development

More than a dozen community-based centershave opened and more than 25 educatorshave been trained since this grant waslaunched in 2002. The Early Childhood Careand Development (ECCD) initiative is an inte-grated approach which recognizes that infantsand toddlers have mutually reinforcing needsof safety, food, education, health, and of acaring environment. The objective of thisgrant is to improve access of deprived chil-dren to ECCD activities in Northern Albaniaand rural Kosovo and to support social cohe-sion and conflict prevention through commu-nity dynamics generated by ECCD activities.The $550,000 grant, executed by UNICEF, is

funding community centers for children irre-spective of ethnic, gender or ability differ-ences. Now, in its third year, the grantcontinues to encourage a more effectiveresponse from community leaders, NGOs andgovernment authorities. The grant alsoenhances the role of women as mediators andrepresentatives of non-violent conflict resolu-tion. The project is expected to be completedby December 2005.

Haiti

Community Driven Development Pilot Project

Despite political and economic instability inHaiti, the Community Driven Development(CDD) Pilot Project has provided innovativeapproaches to some of the country’s ruralareas. In effort to prevent further deteriora-tion of socio-economic conditions, this CDDpilot, implemented by the Pan AmericanDevelopment Foundation, has created a chan-nel for methods and techniques designed toimprove the well-being and incomes of the

Information on all past andcurrent PCF grants can be foundin the PCF Grant Database at:www.worldbank.org/PCF

PCF grants often havea life span of two or more

years. PCF multi-phase grantsinvolve periodic (annual or mid-term) reviews of the grants’progress and additional alloca-tion o f g ran t funds by thePCF Committee. PCF currentlyhas ninety-two grants under

implementation in thirty-eight countries.

Work in Progress:Multi-Year Grants

ment, forcing migration to urban centers and contributing topoverty. This grant, approved for $809,658 is implementedby the government’s Red de Solidaridad Social and a number ofpartner agencies. It provides seed capital for the developmentof methodologies and procedures to protect patrimonial assetsbelonging to displaced population or those at risk of beingdisplaced. These approaches will be piloted in five differentareas of the country where high risk of displacement exists.The areas will be selected to reflect the different systems ofland tenure and Colombia’s cultural diversity. The grant isalso developing participatory methodologies and tools torecover information on abandoned land and assets of the dis-placed. Running until June 2005 the project will provide bothan early warning mechanism and follow-up measures to pro-tect the displaced whose security and assets are under threat.

rural poor. From providing better access to basic social andeconomic infrastructure to identifying and prioritizing theircollective needs, this grant provides the tools necessary forestablishing a better livelihood in their community. Launchedin 2003, the grant supports local governance and encouragescitizens to be part of the decision-making process. The$1,025,000 grant is expected to be completed by 2005.

Colombia

Protection of Patrimonial Assets of Colombia’s Internally Displaced Population

Forced displacement, mainly as a result of the armed conflict,has had a major social and economic impact in Colombia.Displacement has disrupted production, income and employ-

10

11

This section shows thedistribution of approvals bythe regions and fiscal yearsand summarizes the overallPCF grant approvals during FY 98–05* and donorcontributions.

PCF inNumbers

* Includes approvals for future fiscal years.

44%Africa

26%Europe and Central Asia

10%East Asia and the Pacific

9%South Asia

7%Latin America and the Caribbean

3%Global/generic

1%Middle East and North Africa

46.2%International organizations

23.7%NGOs, CSOs, and foundations

15.7%Developing countries’

governments

5.5%Universities/think-tanks

4.9%World Bank-executed

3.9%Donor development agencies

PCF GRANTS IMPLEMENTING AGENCIES, FY98–05

PCF GRANT APPROVALS BY REGIONS, FY98–05

12

%%%

FY FY98 FY99 FY00 FY01 FY02 FY03 FY04 ** FY05 FY06*** Total

AmountUSD 2,005,000 5,143,146 14,228,056 7,937,183 3,383,892 11,816,970 8,489,535 3,102,311 605,160 66,711,253

No. of grants 6 25 22 21 28 16 16 2 136

PCFApprovals by Fiscal

Year*

* As of August 2004.** Number of grants represents newly approved grants only.*** No new grants were approved for FY06; the amount shown represents annual installments approved in earlier years.

Amount of Contribution, USDGrand

Donor Beneficiary FY00 FY01 FY02 FY03 FY04 FY05 Total

Switzerland Kosovo 603,428 647,935

Netherlands Kosovo 2,000,000

Belgium Great Lakes region 1,117,531

Switzerland Georgia 207,942

Switzerland Global 266,667 333,333 400,000

UNDP Georgia 200,000 300,000

UNHCR Georgia 150,000

Total 603,428 4,323,408 300,000 266,667 333,333 400,000 6,226,836

DonorContributions

to PCF, FY00–05

Afghanistan Interim Authority/Afghan AssistanceCoordination AuthorityCommission for Real Property Claims of Displaced Personsand Refugees, Bosnia & HerzegovinaCommission for National Reconciliation, TajikistanEast Timor Transitional AdministrationGovernment of AlbaniaGovernment of BurundiGovernment of CambodiaGovernment of Côte d’IvoireGovernment of Democratic Republic of CongoGovernment of EritreaGovernment of IndonesiaGovernment of LiberiaGovernment of MacedoniaGovernment of PhilippinesGovernment of Republic of CongoGovernment of Republic of Georgia Government of Sierra LeoneGovernment of South Africa Government of Timor LestePeru-Ecuador: Binational Commission for the Developmentof the Frontier

DEVELOPING COUNTRY GOVERNMENTS

Brookdale InstituteCambodia Development Resource Institute (CDRI)Harvard Program Refugee TraumaKenya Institute of Public Policy Research and AnalysisNotre Dame UniversityNYU Center for International CooperationOxford University (Center for the Study of

African Economies)Peace Research Institute of Norway (PRIO)Princeton UniversityStanford UniversityUniversity of California at San DiegoUniversity of DallasYale UniversityWoodrow Wilson Center

UNIVERSITIES AND THINK-TANKS

Brookdale InstituteCambodia Development Resource Institute (CDRI)Harvard Program Refugee TraumaKenya Institute of Public Policy Research and AnalysisNotre Dame UniversityNYU Center for International CooperationOxford University (Center for the Study of African Economies)Peace Research Institute of Norway (PRIO)Princeton UniversityStanford UniversityUniversity of California at San DiegoUniversity of DallasYale UniversityWoodrow Wilson Center

DONOR DEVELOPMENT AGENCIES

Asian Development BankInternational Committee of the Red Cross (ICRC) International Federation of Red Cross (IFRC)International Labor Organization (ILO)International Organization for Migration (IOM)Food and Agriculture Organization (FAO)Organization of American States (OAS)Pan-American Health Organization (PAHO)UNICEFUNFPAUNDPUNDPKOUNHCRUNMIK - UN Interim Administration in KosovoUNOPSUnited Nations Mission in Congo (MONUC)UN Economic and Social Commission for Western Asia (ESCWA)World Links Organization

INTERNATIONAL ORGANIZATIONS

ACTIONAID Action Contre La FaimAceh NGO Forum, IndonesiaAtlas LogistiqueArias Foundation for Peace and Human ProgressArch Diocese of Las Verapaces, GuatemalaAustralian Volunteers International African Women Alliance for Mobilizing ActionBHB Assist. Foundation (Soros Kosovo Foundation for

Open Society)Bonn International Center for Conversion Catholic Relief Services (CRS)CARE Center for Conflict Resolution, South Africa Center for Liberal-Democratic Studies, FR Yugoslavia Centro de Estudios Internacionales, Nicaragua Collaborative for Development ActionComunità di Sant’Egidio, ItalyCommunity and Family Services International (CFSI) Counterpart InternationalCurriculum CorporationEconomic Cooperation Foundation Friends of Bosnia Fondation pour l’Unité, la Paix et la Démocratie, BurundiGisplan, CroatiaGroupe de Recherches et d’Echanges Technologiques (GRET)Humanitarian Affairs Review JournalIndonesian National Commission on Violence

Against WomenInstitut d’Economie Industrielle (IDEI)Iraqi Widows OrganizationKnitting Together Nations, SarajevoMedia Action International OxfamPanos Institute, Washington DCPan American Development Foundation (PADF)Red de Solidaridad Social (RSS), ColombiaSave the ChildrenSelf Reliance Fund, Republic of GeorgiaSwedish Committee for Afghanistan (SCA)Synergies AfricaTranscultural Psychosocial Organisation

NGOs, CSOs AND FOUNDATIONS

PCF GrantsImplementingAgencies

Post-Conflict FundConflict Prevention and Reconstruction UnitSocial Development Department1818 H Street, NWWashington, DC 20433 USA

Tel: 202 473 2743Fax: 202 522 1669e-mail: cpr@worldbank.orgwww.worldbank.org/pcf