Corruption and lack of civil service reforms mar the outcome of World Bank-assisted projects in improving education and health of the poor, finds the Independent Evaluation Group (IEG) of the multilateral agency.

"Quite uneven results in education and health highlight a range of difficulties in improving human development outcomes among the poor," IEG said in its report which evaluated World Bank-supported projects during 2008-10.

It found shortfalls in achieving key public sector reform objectives, including civil service reform and reducing corruption. The report, however, said the Bank's response to recent disasters and global economic crisis had been striking. Adding, that a greater emphasis on preparedness was needed.

In 2008-10, about 85 per cent of World Bank operations broadly aimed to help expand economic opportunities, IEG said. While these projects showed relatively high effectiveness, "policy environments need further improvement and sustainability of public infrastructure needs to be ensured".

The report said improving governance and public sector effectiveness is key to reducing poverty further. "The quality of public sector management also affects the World Bank's development effectiveness in countries," it added.

The report quoted past data which showed the proportion of people living in extreme poverty fell from 30 per cent in 2002 to 25 per cent in 2005. India reduced the share of its population in extreme poverty from 45 per cent to 42 per cent, but because of population growth, the number of the poor actually rose from 447 million to 456 million.

The report said the outcome ratings of Bank-supported projects evaluated in 2008–10 were similar to those evaluated in 2005–07, though there was a drop in both the project outcome and performance ratings in West Asia and North Africa.

In contrast, there was an improvement in development outcomes in projects supported by the International Finance Corporation, an arm of the World Bank Group, in this region, it said. However, the current political turmoil may influence the future evolution of these good results.

Among projects supported by another World Bank Group's arm, the Multilateral Investment Guarantee Agency, the highest proportion of successful outcome ratings was in the financial sector, where its guarantees played a useful, albeit small, role in supporting recovery, the report said.