Regions and Countries

	Table of Contents
p. 6 of 19 BACK | NEXT I. Country Performance Assessment II. Country Operational Strategy III. Sector Strategies IV. Regional Cooperation V. Donor Activities and Aid Coordination VI. Cofinancing and Catalyzing External Resources VII. ADB’s Operational Program VIII. Economic and Sector Work Program IX. Local Cost Financing

Country Assistance Plans - Uzbekistan

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II. Country Operational Strategy (COS)

A. The COS

33. The COS was endorsed by the Board in March 2000. The central goal of the ADB's assistance program is the management of the transition to an economy that relies upon market based institutions providing for a sustainable reduction in poverty and increases in the standard of living. This strategy recognizes the Government's program of reforms as the essential element to the longer term ability to address the problems of poverty reduction and development. The strategy has two operational objectives. The first is the management of transition, including (i) support for basic reforms, and (ii) minimizing the social costs of transition. The second involves enhancing the potential for growth through (i) regional cooperation, (ii) investment in the rural sector, and (iii) direct support for the private sector. The COS maintains the relatively focused approach with respect to sectoral involvement following an assessment on the progress of the policy and sector reforms. The country's limited absorptive and implementation capacities, the pace and intensity of implementation reform programs, and the ADB's orientation of performance-based lending justify a moderate program, focusing on a relatively small number of sectors with phased and pilot-tested approaches.

B. Progress in Implementation

34. The Country Assistance Plan for 2001-2003 is the first CAP which has been prepared under the new COS and translates the underlying thrusts of the new COS through lending and non-lending assistance modalities in the selective sectoral interventions. The Poverty Partnership Agreement is expected to be formalized in 2001. Progress in the policy and sector reforms and the portfolio performance needs to be assessed with monitorable and verifiable measures and indicators which are being developed in each sector.

C. Poverty Partnership Agreement

35. The new COS forms the basis of further discussions with the Government during 2000-2001 leading to a high-level agreement on poverty reduction. While poverty reduction and prevention are a national priority and the main thrust of the Government's development strategy and the new COS, to formalize the Poverty Partnership Agreement, additional work is required to revalidate data and performance indicators. The results of the World Bank-financed living standard survey that are expected to be available by late 2000 could be an important basis to strengthen a poverty analysis that was undertaken in the COS.

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