Project Appraisal Document

STRATEGIC CONTEXT

Country Context

1. 
   Yemen, one of the poorest countries in the Middle East and North Africa (MNA) region, faces daunting development challenges. With a GDP per capita of US$1,209 (PPP¹), Yemen ranked 154 out of 187 countries in the 2011 Human Development Index. Rapid population growth of over 3% a year, lack of clear alternatives to an oil economy, rapidly depleting water reserves, poor infrastructure with inadequate access to basic services for the majority of the population and acute gender inequality are amongst the development challenges Yemen is confronted with. Since the unification in 1990, Yemen has been grappling with establishing a pluralistic political system within a unified nation-state. With the Arab Spring uprising, protests in Yemen started against unemployment and weak governance, escalating to specific demands for political and social change. Following a subsequent power transfer agreement, President Ali Abdullah Saleh stepped down after 33 years in power. Elections took place on February 21, 2012, and Abdo Rabbo Mansoor Hadi assumed office as the new President.
   

2. 
   Yemen has embarked on a political transition process since the transfer of power in February 2012. Although the implementation of the National Dialogue is largely on track, Yemen faces significant risks if reforms do not materialize quickly and if substantive changes are not felt by the population. Gains achieved so far by the National Dialogue are fragile and important challenges lie ahead that need to be addressed collectively by all stakeholders.
   

3. 
   Civil society organizations (CSOs) in Yemen are one of the most vibrant and dynamic in the MNA region. Although their activities were constrained throughout the last three decades, the current transition has brought new opportunities for CSOs to engage constructively with the Government and donors on development and reform programs. The Government of National Reconciliation (GNR) has a unique opportunity to harness the constructive engagement emerging in Yemeni civil society in order to collectively address complex reform issues and support the immediate transition and longer term state-building.
   

4. 
   In October 2012, G-8 countries, regional partners, and international financial institutions launched the Deauville Partnership, a new Transition Fund, to provide partnership countries, including Yemen, with technical assistance to undertake sustainable policy reforms.² The commitments made in the Riyadh conference, the subsequently Mutual Accountability Framework and the Deauville Partnership Transition Fund, are supporting participation to promote sustainable reforms and state building in Yemen.
   

5. 
   The Government-CSOs Partnership Project supports this objective by providing technical assistance to both stakeholders to facilitate their dialogue and inform the formulation of a joint Government-CSOs Partnership and Mutual Accountability Framework (PMAF). Through capacity building and targeted technical assistance at sector level, the project will help them operationalize the PMAF on a pilot basis with the goal of improving development programs’ results and promoting more inclusive reform policies.
   

Sectoral and Institutional Context

6. 
   The role of CSOs in effective service delivery, participation, and decentralization programs has also been embraced by the GNR and the donor community. In the Riyadh conference in September 2012, the GNR and donors reaffirmed their commitment to work with CSOs as key development partners. This was specifically mentioned as one of the pillars in Yemen’s Mutual Accountability Framework (MAF), which also emphasized the need to focus on women and youth in both economic and governance realms. These developments signal an increasing recognition among the GNR and the donor community that CSOs’ constructive engagement, particularly in areas that impact women, youth as well as other marginalized groups, will contribute to a peaceful and successful transition and to more inclusive and sustainable development in Yemen. Yemen ISN highlights the Bank’s overriding objective as to “help the Government produce tangible results that stabilize the transition in the short term.”³. Building inclusive and sustainable partnerships between the Government and CSOs is one of the cornerstones in Yemen’s transition process.
   

7. 
   Although fragmented along various social and political fault lines, Yemeni civil society is dynamic, large and diverse. Before the transition process in 2011, about 7,000 CSOs were registered across different sectors, most of them being welfare oriented and located in urban centers.⁴ Limited participation of women, youth and marginalized groups, as well as growing attempts by the Government to control CSO activities characterized the CSO sphere. CSOs did not have a strong role in service delivery and had limited impact in holding the Government accountable or in establishing appropriate mechanisms to voice community needs and grievances. Although promising initiatives occurred in terms of dialogue between CSOs and the Government, such initiatives and dialogue opportunities were limited, ad-hoc, and personality dependent. The World Bank’s 2010 Yemen Civil Society Landscape report highlighted CSOs’ aspiration of creating a participation mechanism to promote CSOs’ role in the Government decision-making, and the Government’s interest to work with committed CSOs as development partners.⁵
   

8. 
   The political transition in Yemen has created a momentum for CSOs to engage constructively with the Government and donors. For the first time in Yemen’s modern history, CSOs have an explicit mandate to engage actively with Government counterparts. With the country facing transition challenges, engaging with Yemeni CSOs is no longer seen as an opportunity but a necessity, as it has the potential of building a sustainable link between the state and citizens, channeling the voices of Yemenis to government entities and reaching out to women, youth and marginalized groups while helping to hold the Government accountable.
   

9. 
   CSOs, youth and women’s groups, in the current transition in Yemen, are seeking to enhance their legitimacy and enhance their voice vis-à-vis the Government and the society at large. Many of these formal and informal organizations have been driving the recent change in the country and are also giving voice to various marginalized groups. The transformation of civic participation during the current transition has created a unique opportunity for constructive dialogue between the Government and CSOs that supports collaborative approaches to address development challenges. It is crucial to take advantage of this historical window of opportunity, as Yemen embarks on a two-year National Dialogue (until Spring 2014).
   

10. 
    Several donors currently provide assistance to CSOs in Yemen to build their capacity, and partner with them to implement specific development programs or to reach out to local communities and marginalized groups. A summary of current donor activities is provided below:
    

1. 
   European Union is the leading donor for non-state actors in Yemen. Since 2005, the EU has facilitated dialogue and closer partnership between the Government and CSOs through its Sharaka program, focusing on promoting democracy and human rights. Currently, several projects are being implemented in different parts of the country, all working with CSOs for increased participation. About 50% of EU assistance to Yemen is channeled through CSOs.
   
2. 
   USAID: Funds the AMIDEAST (see below), as well as a Yemen Responsive Governance Project (RGP), a 3-year project working to strengthen government institutions and improve the delivery of public services while encouraging more citizen participation in the political process.
   
3. 
   Oxfam is working with the Government and CSOs on implementing various projects, including the response to the rising hunger levels and emergency programs and has also successfully partnered with CSOs in the implementation of the cash transfer program reaching more than 12,000 households.
   
4. 
   Islamic Relief works on conflict transformation and peace building programs that include capacity building of influential persons in communities.
   
5. 
   AMIDEAST is implementing the Youth Civic Engagement (PYCE), a two-year project to engage youth in sports and recreational activities in five governorates.
   
6. 
   An estimated US$5-10 million is provided by GCC countries to support humanitarian and Islamic charitable associations in Yemen.
   
7. 
   Partneraid partners with the people of disadvantaged communities providing relief with a focus on rehabilitation, education, health and water and nutrition.
   
8. 
   Progressio focuses on increasing the capacity of partner CSO’s, local authorities and communities in participatory governance to help promote citizen involvement in development planning and local decision making.
   

11. 
    The World Bank has for long acknowledged the important role of civil society and has worked with CSOs for several decades across a wide range of activities. In particular, global experience shows that the role of CSOs in periods of transition is considered critical by the World Bank and donors, as they can mediate effectively between the state and citizens and increase the legitimacy and sustainability of reforms. The World Bank has undertaken significant analytical work on the conflict in Yemen. The companion piece to the 2011 World Development Report, Reducing Conflict Risk: Conflict, Fragility and Development in the Middle East and North Africa notes that political transitions are followed by increased risk of conflict, as newly arrived regimes and citizenries attempt to assert their authority and rights. To mitigate the risk, the report recommends that development actors enhance focus on strengthening both the supply and demand sides of governance, and recognizes increasing citizen accountability through creating an enabling environment for CSOs as one of the means to achieve these objectives.⁶ The project design also builds on the 2010 report A Landscape of Civil Society in Yemen: Issues and Options for World Bank Country Program, which was prepared through extensive consultations with 165 civil society organizations across Yemen. The report recommends Bank support for Government-led consultations with civil society as one of the options for better civil society engagement in development operations, and highlights Yemeni CSOs’ aspiration for creating a CSO participation mechanism.⁷
    

12. 
    Yemen Interim Strategy Note (ISN) highlights the Bank’s overriding objective as to “help the Government produce tangible results that stabilize the transition in the short term, while laying the groundwork for medium-term reforms and sustainable longer-term benefits.”⁸ Building inclusive and sustainable partnerships between the Government and CSOs as shown by global experience⁹ can play an important role in restoring confidence in the government’s ability to implement institutional and social change and in extending the state’s capacity to deliver – objectives underlined across ISN’s three strategic pillars.¹⁰
    

13. 
    The proposed Government-CSOs Partnership Project builds on successful Government-CSOs experiences in countries that have undergone similar political and economic transitions, such as the Philippines, Turkey and Indonesia, as well as the lessons learnt from the Bank’s Palestinian Non-Governmental Organization (PNGO) Project in the Palestinian territories. The proposed project will build on the findings and recommendations of the FY13 CSOs Mapping and Capacity Assessment study that is underway in Yemen. It will also inform the preparation of the Civil Society Support Project requested by the Government of Yemen for FY14.
    

3. 
   Higher Level Objectives to which the Project Contributes
   

14. 
    The Bank adopted an Interim Strategy Note (ISN) in October 2012 to lay out the World Bank Group’s strategy of support to Yemen for FY2013–2014, corresponding to the current transition period and its immediate aftermath. The ISN aims to help the Government produce tangible results that stabilize the transition in the short term, while laying the groundwork for medium-term reforms and sustainable longer-term benefits. The ISN proposes to support these objectives across three strategic pillars: (i) achieving quick wins and protecting the poor by creating short-term jobs, restoring basic services, improving access to social safety nets, and revitalizing livelihoods; (ii) promoting growth and improving economic management by helping maintain macro stability, strengthening fiscal policies and public financial management, and improving the enabling environment for private sector growth and competitiveness; and (iii) enhancing governance and local service delivery by supporting transparency, accountability, capacity building, institutional strengthening, and improved citizen engagement. The implementation of the ISN is guided by three principles that will be mainstreamed across the program: (i) intensifying participation and inclusion, especially among women and young people; (ii) strengthening institutional capacity, governance, transparency, and accountability; and (iii) enhancing the operational flexibility of the Bank’s program. Adhering to these principles will be critical if the collective efforts of the Government and donor community are to produce long-lasting development impact.
    

15. 
    The proposed Government-CSOs Partnership Project directly links to the ISN pillar (iii) enhancing governance and local service delivery by supporting transparency, accountability, capacity building, institutional strengthening, and improved citizen engagement. Additionally, the proposed project directly links to the ISN’s implementation principles of: (a) intensifying participation and inclusion, especially among women and young people; and (b) strengthening institutional capacity, governance, transparency, and accountability. Specifically, through facilitating an informed dialogue between line ministries and CSOs, and supporting their efforts to agree on a PMAF with a results-oriented action plan for each targeted pilot sector, the project will help to promote more inclusive implementation of various sectoral development programs as well as the ISN’s objective of engaging with non-government actors. More broadly, the proposed project will contribute to enhancing the development impact of the Bank and other donor supported programs. Additionally, CSOs will engage with government institutions in channeling community grievances that will thus be addressed more effectively and in a timely manner. Inclusive partnerships will give voice to various groups, including women and youth, and promote responsive and accountable service delivery especially at the local level. These actions are critical for rebuilding trust between stakeholders and the legitimacy of state institutions, which will contribute to reducing the overall conflict risk in the country. ¹¹
    

PROJECT DEVELOPMENT OBJECTIVES

PDO
The development objective of the proposed project is to enhance Government-CSOs partnerships in the implementation and monitoring of sector development programs.

Project Stakeholders and Beneficiaries

16. 
    The main target audiences for the proposed project will be the Ministry of Planning and International Cooperation (MoPIC), the Ministry of Social Affairs (MoSA), participating sector-mapped CSOs and line ministries, the Bank’s Country Management Unit and the Country Team. The broader audience also includes donors and INGOs engaged in operational work across sectors in Yemen, as well as the CSO community at large.
    

1. 
   Government of Yemen ministries: MoPIC requested the proposed project that bridges the FY13 CSO Mapping and Capacity Assessment study and the planned Civil Society Support Project, requested by the Government. The list of sector ministries which will be part of this Project is yet to be finalized.
   

2. 
   Civil Society Organizations: CSOs have been recognized as key development partners by the GNR and the international community. The project will give them a seat at the table to take part in defining the PMAF of engagement with the Government in development operations and in select pilot sectors. The project will also enable CSOs to strengthen their own institutional capacities in order to better perform as development partners. The dialogue with line ministries will give the CSOs the opportunity to voice their vision of development priorities and better understand reform tradeoffs that underpin policy decisions or the formulation of development programs. This will help them identify entry points for sustainable partnerships with the Government and key donors. Sector mapped CSOs that will take part in the implementation of the SAPs will receive capacity building on social accountability concepts and tools and grant-financing support through the Affiliated Network for Social Accountability in the Arab World (ANSA-AW). The CSOs that will be mapped to the sectors where pilot SAPs will be implemented are the main target of the training sessions on social accountability to improve the operational skills.
   

3. 
   Women CSOs and Youth Groups: The CSOs which are led by and engaged in representing women and youth identified in the CSO Mapping and Capacity Assessment study will be called on to contribute and partake in this project. This will give them voice to influence a more gendered and overall more inclusive approach in the preparation, implementation and monitoring of Government development programs.
   

4. 
   Donors and INGOs: At the Riyadh donor conference in September 2012, the international community committed to supporting Yemen’s institution-building. The resulting Mutual Accountability Framework (MAF) commits both the GNR and donors to a set of specific development actions. This project complements the objectives of the MAF and supports more effective delivery of various donor supported programs. The proposed project is also in line with various donor and INGO programs involving the CSO community in Yemen.¹²
   

5. 
   Citizens: The general population of Yemen is expected to benefit from a sustainable Government-CSO partnership at the national level. At the sectoral level, citizens living in the targeted governorates and benefiting from the pilot sectors’ development programs are also expected to benefit over the time through better service delivery. Additionally, the partnership between line ministries and sector mapped CSOs will improve the implementation and monitoring of development programs and enhance citizens’ participation and inclusion.
   

PDO Level Results Indicators

17. 
    The expected key results of the Government-CSOs Partnership Project are:
    

1. 
   Enhanced capacity and knowledge of the Government and CSOs regarding the value of partnership and participation as critical factors in improving development outcomes.
   
2. 
   Clearly defined frameworks for mutual collaboration, partnership and accountability between the Government and CSOs to enhance participation and inclusion, and to improve development results in select sectors.
   
3. 
   Improved on-the-ground collaboration and partnership between the Government and CSOs for enhanced participation and inclusion, and improved development results in select sectors.
   

18. 
    Results indicators for the project are:
    

1. 
   Number of partnerships formalized between government(s) and civil society organizations;
   
2. 
   Number of CSOs representing rural and urban constituencies engaged in the dialogue;
   
3. 
   Number of women and youth groups directly engaged in project’s activities;
   
4. 
   Number of direct project beneficiaries, of which female (%)
   

PROJECT DESCRIPTION

19. 
    In the context of Yemen, Government-CSOs engagement and partnership needs to be supported by a pragmatic approach and mechanisms for genuine dialogue. Through technical assistance the proposed project will facilitate the Government-CSOs dialogue and the joint formulation of a Partnership and Mutual Accountability Framework (PMAF), and subsequently, sector-specific action plans (SAPs) between line ministries and CSOs working on select sectors. The joint PMAF will help clarify the rules and principles of partnership and accountability between the Government and CSOs. It is critical to operationalize this PMAF on a pilot basis in select sectors to test its feasibility and improve its implementation. The project’s select pilot sectors will be identified in consultation with sectors, MOPIC and line ministries after the completion of the FY13 CSO Mapping and Capacity Assessment study and the proposed sectoral dialogue sessions. Given the emphasis on service delivery and decentralization, the pilot sectors are likely to be from the health, education, social protection, water supply, and sanitation sectors.
    

20. 
    The following principles lay the ground for the dialogue towards formulating the PMAF and the pilot SAPs, while giving them the responsibility to agree on the partnership rules and principles:
    

1. 
   The Government seeks to: (i) improve operational collaboration and coordination with CSOs on sectoral development programs, (ii) harness community participation more effectively, (iii) and promote CSOs contributions to service provision and support to more inclusive development programs;
   
2. 
   CSOs seek a constructive engagement with the Government at the national and sectoral levels on specific development and reform programs;
   
3. 
   Government and CSOs develop an effective process to develop the PMAF, especially through implementing specific SAPs on a pilot basis in select sectors in close coordination between line ministries and sector mapped CSOs; and
   
4. 
   Government and CSOs consider various tools to improve the partnership including reforms of laws and regulations relating to the sector.
   

21. 
    The proposed Project will be implemented through two tracks: a Bank-executed track aimed at distilling international and regional experiences of the demand and supply side perspectives on government-CSO partnerships (the Bank with its international experience being better placed to implement this component), and a Recipient-executed track with the objective of organizing and facilitating sector dialogue sessions.
    

22.