World Bank Engagement at the State Level : The Cases of Brazil, India, Nigeria, and the Russian Federation

Abstract

This report summarizes the past 10 years
 (1998-2008) of World Bank engagement at the state level in
 four selected large federal countries: Brazil, India,
 Nigeria, and the Russian Federation. The report identifies
 lessons and good practice examples that warrant further
 examination and wider dissemination. First, the study
 confirms the desirability of continued selective lending in
 a few focus states. The Bank's engagement with
 progressive, reformist states has added value and has been
 highly appreciated, but to enhance the poverty impact of
 state-level interventions, greater weight should be given to
 the needs of the poorest states by balancing states'
 propensity to reform and the concentration of poverty within
 them. Experience shows that it has been possible to achieve
 results in some of the poorer, low-capacity states through
 persistent work with committed state counterparts and
 partnerships with other donors. Second, continued focus on
 public finance management appears sound, irrespective of
 whether engagement is confined to this area or serves as an
 entry point for broader engagement. Third, there is
 considerable scope for greater impact from knowledge
 transfer and expanded knowledge services.