The World Bank Financial Education and Financial Literacy (P120338)

Transcription

1 Public Disclosure Authorized EUROPE AND CENTRAL ASIA Russian Federation Finance & Markets Global Practice IBRD/IDA Specific Investment Loan FY 2011 Seq No: 14 ARCHIVED on 18-Oct-2017 ISR29450 Implementing Agencies: Ministry of Finance, Noncommercial Foundation for Enterprise Restructuring and Financial Institutions Development (FER) Public Disclosure Authorized Key Dates Key Project Dates Bank Approval Date:07-Dec-2010 Planned Mid Term Review Date:23-Nov-2014 Original Closing Date:30-Jun-2016 Project Development Objectives Effectiveness Date:29-Jul-2011 Actual Mid-Term Review Date:23-Nov-2014 Revised Closing Date:30-Apr-2019 Public Disclosure Authorized Project Development Objective (from Project Appraisal Document) Project development objectives are to: (i) improve the financial literacy of Russian citizens (especially, among the school-age and college students, and active and potential low- and middle-income users of financial services); and (ii) strengthen the foundations for improving consumer protection in financial services. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Development of financial literacy strategy and financial literacy and consumer protection monitoring and evaluation:(cost $16.00 M) Public Disclosure Authorized Financial Literacy Capacity Building:(Cost $44.20 M) Development and implementation of education programs and information campaign for improving financial literacy, incl $14 million in subprojects:(cost $42.55 M) Strengthening of consumer protection in financial services:(cost $45.93 M) Project Management:(Cost $5.84 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory 10/18/2017 Page 1 of 14

2 Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions Progress towards achieving the Project Development Objective continues to be rated Satisfactory with the last survey to be conducted in Of the five PDO-level indicators, four show a positive trend and good progress. For example, 66.7 percent of the target population in the original two pilot regions (Kaliningrad and Volgograd) understand the trade-off between risks and rewards in choosing a financial product (an increase from 63.9 percent) and 35.7 percent of the target population understand the importance of having a financial cushion for life emergencies and crisis situations (an increase from 30.5 percent). Other achievements include: (i) Finalization of the National Financial Literacy Improvement Strategy approved by government on September 29, a key achievement; (ii) Provision of international best practices to highlight regulatory frameworks of required information disclosure to consumers by financial providers;(iii) Establishment of three federal methodological centers of financial literacy with a network of 13 regional methodological centers to train tutors;(iv) Establishment of a user-friendly financial literacy and financial consumer protection informational and educational portal;(v) Implementation of regional financial literacy development programs in nine regions, which helped establish regional financial literacy centers and helped develop and test financial literacy education curricula and textbooks and materials;(vi) Completion of 5 reports on the Status of Financial Consumer Protection and rollout of a new on-line kiosk platform for consumer protection guidance;(vii) Development of 16 consumer counselling standards, which were tested and introduced in Rospotrebnadzor the Agency for Protection of Consumer Rights and Human Welfare; and, (viii) development of annual public information campaigns. The project continues to contribute to the overall improvement of financial literacy of Russian citizens. The project s massive dissemination and information campaigns accompanied by events and provision of materials have contributed to an overall improvement as supported by the recent PISA assessment (released on May 24, 2017). Russia placed 4th on financial literacy for 2016, up from 10th in This was the biggest improvement among all countries that participated in the survey twice. Russia is now ranked higher than the OECD average. Moreover, the gap between top and worst performers is among the lowest with little variance across different social groups, rural and industrial, and no significant difference between boys and girls implying that the results are improved not by efforts on improvement of some top schools and students but by a wider and more balanced dissemination of financial literacy in Russia attributed to the project. The project was restructured with the official countersignature on January 12, Another and third restructuring was completed with the official countersignature on 15 May The changes approved in May 2017 restructuring included: (i) additional counterpart financing; (ii) increase of the number of regions that will receive capacity building. The additional financing from the Government of the Russian Federation is US$ million, bringing the total project financing to US$ million (of which US$25 million in IBRD and US$ million in Borrower financing). With this third restructuring, the regional coverage of the project will increase significantly. The project started with 9 regions (three original pilot regions Kalinigradskaya Oblast, Volgogradskaya Oblast and Tver Oblast (but Tver withdrew after project effectiveness) and an additional seven regions Krasnodar Krai, Arkhangelsk Oblast, Tomsk Oblast, Republic of Tatarstan, Stavropol Krai, Saratov Oblast, Altai Krai) added; during the January 9, 2017 restructuring another 15 regions were added, and now the government proposes to add another 28 regions (15+28=43), to reach a total of 52 regions ( =52) in each of the Far-East, Siberian, North-West, Ural, Central and Volga Federal Okrugs. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Substantial Substantial Macroeconomic -- Substantial Substantial 10/18/2017 Page 2 of 14

3 Sector Strategies and Policies -- Low Low Technical Design of Project or Program -- Low Low Institutional Capacity for Implementation and Sustainability -- Moderate Moderate Fiduciary -- Low Low Environment and Social -- Low Low Stakeholders -- Low Low Other Overall -- Moderate Moderate Results Project Development Objective Indicators 1.1 (1.1.1) % of active and potential low- and middle-income users of financial services understanding the trade-off between risk and rewards in choosing financial products in Kaliningrad & Volgograd (Percentage, Custom) Value Date 31-May Jun Jun Apr (1.1.2) % of active and potential low- and middle-income users of financial services understanding the trade-off between risk and rewards in choosing financial products in 7 other regions (Percentage, Custom Supplement) Value (1.2.1) % of school-aged and college students understanding risk-reward trade-off and rewards in choosing financial products in Kaliningrad and Volgograd pilot regions (Percentage, Custom) Value Date 31-May Jun Jun Apr /18/2017 Page 3 of 14

4 1.2 (1.2.2) % of school-aged and college students understanding risk-reward trade-off and rewards in choosing financial products in 7 other regions (Percentage, Custom Supplement) Value (2.1.1) % of active and potential low- and middle-income users of financial services understanding the importance of financial cushion in Kaliningrad and Volgograd pilot regions (Percentage, Custom) Value Date 31-May Jun Jun Apr (2.1.2) % of active and potential low- and middle-income users of financial services understanding the importance of financial cushion in 7 other regions (Percentage, Custom Supplement) Value (2.2.1) % of school-aged and college students understanding importance of financial cushion in Kaliningrad and Volgograd pilot regions (Percentage, Custom) Value Date 29-May Nov Jun Apr (2.2.2) % of school-aged and college students understanding importance of financial cushion in 7 other regions (Percentage, Custom Supplement) Value /18/2017 Page 4 of 14

5 3. (3.1) % of active and potential low- and middle-income users of financial services who compare alternatives before obtaining a credit in Kaliningrad and Volgograd pilot regions (Percentage, Custom) Value Date 31-May Jun Jun Apr (3.2) % of active and potential low- and middle-income users of financial services who compare alternatives before obtaining a credit in 7 other regions (Percentage, Custom Supplement) Value (4.1) % of active and potential low- and middle-income users of financial services who know what aministrative/legal action to be taken having discovered a deceit by provider of a financial service (Percentage, Custom) Value Date 31-May Jun Jun Apr (4.2) % of active and potential low- and middle-income users of financial services who know what aministrative/legal action to be taken having discovered a deceit by provider of a financial service (Percentage, Custom Supplement) 10/18/2017 Page 5 of 14

6 Value Overall Comments The surveys related to the PDO indicators will be conducted in years 2 (2012), 5 (2015) and 8 of the project (year 8 being 2018); so current targets remain unchanged. Intermediate Results Indicators 1.1 Financial literacy strategy is developed and agreed between key stakeholders (Text, Custom) Value No No Yes. After extensive internal and external consultations the National Strategy has now been approved by the Central Bank and Ministry of Finance. On September 29, 2017, the strategy was approved by government - a key achievement and milestone. Yes Date 28-Dec Jun Jun Apr-2018 Comments Stratetgy as approved by Government on September 29, a key and major achievement. 1.2 Requirements to education programs are approved by the Expert Board (Text, Custom) Value No Yes Yes Yes Date 28-Dec Jun Jun Apr /18/2017 Page 6 of 14

7 1.3 Three rounds of the FL assessment are conducted in YR 2,5,8 (Text, Custom) Value No No (only YR2 was conducted) No, last survey to be conducted in year 8 (2018) Yes, with extension survey shifted from Y7 to Y8 1.4 Three rounds of the Consumer Finance Survey are conducted in YR 2,5,8 (Text, Custom) Value No No (only YR2 was conducted) No, last survey to be conducted in year 8 (2018) Yes, with extension survey moved from Y7 to Y8 1.5 Ministry of Finance establishes dedicated working group on financial literacy and consumer protection (Text, Custom) Value No Yes Yes Yes Date 01-Sep Nov Nov Apr Amendments to the federal legislation to provide for effective consumer protection in financial markets and financial literacy are prepared (Text, Custom) Value No No Yes Yes 10/18/2017 Page 7 of 14

8 2.1 # of regional FL development programs being implemented with the Project support (Number, Custom) Value (2.2.1) # of teachers of the relevant subjects trained by the Project in regions (two pilot and new participating regions) (Number, Custom) Value , , , (2.2.2 (methodists) and 2.4 (consultants) # of financial literacy specialists (consultants) and methodists trained for general education and vocational schools by the Project regions (two pilot an (Number, Custom) Value , , Comments Please refer to Aide Memoire of July 2017 with the correction to the indicator: the indicator covers two activities(1) the training of methodist (indicator 2.2.2) with a target EOP of 1,500 accumulative and with a result of end June 2017 reaching the training of 440 Methodist (target for end June 2017 is 400); (2) the training of financial literacy consultants (indicator 2.4) to help develop and undertake FL events with an EOP target of 6,800 accumulative and actual number of consultants trained reaching 2,500 by June 2017 (year target of 2,500). 10/18/2017 Page 8 of 14

9 (2.7) Number of financial literacy textbooks published and distributed in regions (up to < 6,000,000) (Number, Custom Supplement) Value ,000, # methodists for general education and vocational schools, prepared by the Project (Number, Custom Supplement) Value , FL information and educational portal established and fully operational (Text, Custom) Value No No Yes, and about visitors to site Yes Date 28-Dec Jun Jun Apr (3.1.2) # of educational modules and learning materials developed nationally at federal level (Number, Custom) Value Date 28-Dec May Jun Apr /18/2017 Page 9 of 14

10 3.1 (3.1.1) # educational programs created at Federal level (Number, Custom Supplement) Value (3.9) Number of digital products (information, edutainment and social ad videos, games, webpages) created under Funds of Good Ideas (Number, Custom Supplement) Value National information campaign designed and launched (Text, Custom) Value No Yes Yes Yes Date 28-Dec Jun Jun Apr (3.6) # of financial literacy and consumer protection improvement initiatives supported through the Fund of Good Ideas (Number, Custom) Value /18/2017 Page 10 of 14

11 4.1 A system of hotline call centers to advise consumers on financial issues is established and operational (Yes or No) (Number, Custom) Value Date 28-Dec Jun Jun Apr Total number of consultations on financial services issues provided by Rospotrebnadzor specialists (target value annualy) (Number, Custom Breakdown) Value 17, , , , Date 31-May May Jun Apr Number of financial consumer complaints examined through Rospotrebnadzor "hotlines" and public officers (target value complaints annualy) (Number, Custom Breakdown) Value 7, , , , Date 31-May May Jun Apr Special system for submitting and handling financial consumer complaints in e-format is developed (Text, Custom) Value No No Yes, the system is now established. Yes Date 28-Dec Jun Jun Apr /18/2017 Page 11 of 14

12 4.3 An e-library (infotheque) on topical CP issues is established and operational (Text, Custom) Value No No Yes, it is now established and functioning. Yes Date 28-Dec Jun Jun Apr Number of Rospotrebnadzor consulting centres for consumers in Russian Federation (Number, Custom) Value Date 28-Dec Jun Jun Dec # of Rospotrebnadzor specialists trained during the Project on financial consumer protection and financial literacy (Number, Custom) Value , # of the reports dedicated to the financial consumer protection, containing independent monitoring results and recommndations (Amount(USD), Custom) Value /18/2017 Page 12 of 14

13 (4.8) # of information materials (booklets/leaflets) on financial consumer protection distributed to consumers by Rospotrebnadzor staff (Amount(USD), Custom Supplement) Value ,500, ,650, ,100, Overall Comments During the preceding period major achievements have been met and completed. For detailed annual progress see Results Framework attached to the Aide memoire as portal does not allow for details. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P IBRD Effective USD % Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P IBRD Effective 07-Dec Mar Jul Jun Apr-2019 Cumulative Disbursements 10/18/2017 Page 13 of 14

14 Restructuring History Level 2 Approved on 11-Jun-2015,Level 2 Approved on 06-Jan-2017,Level 2 Approved on 12-May-2017 Related Project(s) There are no related projects. 10/18/2017 Page 14 of 14