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

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.