World Bank Support for Domestic Revenue Mobilization - An Independent Evaluation - Report to the Board from the Committee on Development Effectiveness - Meeting of April 26, 2023

Jul 19, 2026

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World Bank Support for Domestic Revenue Mobilization: An Independent Evaluation consolidates the Committee on Development Effectiveness’ April 26, 2023 discussion of IEG findings and the World Bank’s draft management response. The committee highlights the timeliness of strengthening domestic revenue mobilization as a core focus, endorses a more systematic DRM approach, and supports planned shifts toward new core public finance reviews to close knowledge gaps. Members emphasize stronger indicators and results tracking, address concerns about reversals of tax policy reforms under DPOs, and urge recruitment, incentives, capacity-building for tax administration, and collaboration on illicit financial flows, tax evasion, asset recovery, and informality.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages1

Reading Time3 min

Committee Consideration and Context

Timeliness within the Evolution Roadmap

Importance of a Long-Term DRM Approach

Management Response and Recommended Actions

New core ASA-Public Finance Reviews (PFR) and Knowledge Gaps

Indicators and Results at Project and Corporate Levels

Risks and Additional Policy Focus

Reversals of DPO-Supported Tax Policy Reforms

Strengthening In-House Expertise and Incentives

Illicit Financial Flows, Informality, and Board Seminar Request

Public Disclosure Authorized Public Disclosure Authorized World Bank Support for Domestic Revenue Mobilization An Independent Evaluation Report to the Board from the Committee on Development Effectiveness ∗ Meeting of April 26, 2023 The Committee on Development Effectiveness met to consider the IEG’s report World Bank Support for Domestic Revenue Mobilization: An Independent Evaluation (CODE2023-0017) and the World Bank Draft Management Response (CODE2023-0019) . The Committee welcomed the evaluation and noted the timeliness ofthe subject in the context of the WBG’s Evolution Roadmap which prioritizes Domestic Revenue Mobilization (DRM) as a core focus area for increased WBG support. They underscored the importance of DRM as a reliable pillar of finance for countries’ development goals that deserves a long-term approach and called on the WB to consider providing a more systematic and streamlined approach to DRM and develop a DRM framework. Members appreciated Management’s response to the report’s recommendations including plans to introduce a new core ASA-Public Finance Reviews (PFR) (replacing Public Expenditure Reviews (PER)) to address knowledge gaps and set priorities for analytical and operational Bank support to improve DRM, and to support client countries in their DRM efforts by systematically assessing various tax policies. They concurred with Management about the need for more robust indicators to measure DRM efforts and welcomed the focus on improving the use of results indicators at the project level as well as part ofthe new WBG Corporate Scorecards. They highlighted that this would strengthen corporate incentives and create the foundations to implement the recommendations. In addition, members noted some concerns related to IEG’s findings that tax policy reforms supported by Development Policy Operations (DPOs) were often reversed and encouraged the WB to implement recommendations two and three and address other related issues to avoid tax policy reforms reversals. Members urged Management to strengthen recruitment efforts and ensure that the right incentives are established to increase the in-house expertise on DRM, and possibly lower the reliance on Short-term Consultants (STC) or Extended Term Consultants (ETC) . They further emphasized the need for greater incentives for sustaining tax and structural reforms and called on the WB to enhance its support for capacity building for tax administration in this regard. They underscored the importance of continued collaboration with development partners and effectively cross-utilize existing resources in the organizations. In addition, some members and non-members inquired about the WB’s perspective and plans to help countries tackle Illicit Financial Flows (IFF), tax evasion and asset recovery. They also inquired about the WB’s plans to formalize informal economy activities that have market value to help expand countries’ tax base and boost DRM, and asked Management to provide a Board seminar on informality to improve the Board’s understanding and discuss appropriate policy interventions. ∗ This report is not an approved record.

FAQs

Why did the Committee consider DRM a core focus area in the World Bank’s Evolution Roadmap?

The Committee viewed domestic revenue mobilization as a reliable pillar of finance for countries’ development goals and stressed the need for a long-term approach aligned with the roadmap’s priorities.

What management actions were appreciated in response to the evaluation recommendations?

Members welcomed plans to introduce core ASA-Public Finance Reviews (replacing PER) to address knowledge gaps and set priorities, and to support client countries through systematic assessment of tax policies.

What concerns did members raise about tax policy reforms supported by Development Policy Operations (DPOs)?

Members noted that such tax policy reforms were often reversed and encouraged the World Bank to implement recommendations two and three and address related issues to avoid reversal of reforms.

Jul 19, 2026

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