"Moving wheels of change”

Evaluation of the EBRD’s policy dialogue performance and results (2017-2023)

Background

The evaluation covers funded policy dialogue activities approved from 2017 to 2023 and builds on a synthesis of IEvD’s evaluative findings on policy work.This evaluation aims to update the Bank’s understanding of the performance and results of policy dialogue as the Bank moves to prepare for the next SCF period 2026-2030. An evaluation on policy dialogue is also timely due to both internal dynamics under the Bank’s Transformation Agenda discussions on policy engagement and in the context of the General Capital Increase Commitments taken under Governors Resolution.

Main findings

The evaluation of the EBRD’s policy dialogue from 2017 to 2023 underscored the importance of policy dialogue in fostering systemic change. The Bank’s extensive local presence, breadth of support across public and private sectors, and tight nexus between advisory and financing help set EBRD apart for clients. Notable results in governance and competitiveness in the case study countries included the successful implementation of renewable energy auctions in Serbia, which were expedited through a liquidity loan condition, and the establishment of the Renewable Energy Sources Association, which facilitated private sector investment. In the Kyrgyz Republic, the development of e-governance services significantly improved government efficiency and transparency. Unintended results of policy engagement emerged, particularly in the context of crises, such as during the Covid-19 pandemic. However, the evaluation underscored several challenges, such as the lack of a clear strategic approach and operational guidance for policy dialogue, inconsistent methods for estimating transition impact, and fragmented monitoring and reporting systems.