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Reform Agenda
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The next couple of years are crucial to the Asian Development Bank (ADB)’s Reform Agenda, the ambitious effort to reorient the organization toward better development results, to improve its operations and to adapt to the rapid changes under way in the global development field and in the economies of Asia and the Pacific.
ADB completed a review of its 1999 Poverty Reduction Strategy in July 2004. Recommendations of the review are largely being implemented as part of the agenda. The overarching reform plan is organized under five main areas and 19 initiatives. They include implementing the management for development results (MfDR) agenda; strengthening operational policies, strategies and approaches; refining organizational processes and structures; reinforcing knowledge management; and implementing a new human resources strategy.
More specifically under those areas, ADB is aiming to make the organization more effective and thus help achieve country-level development outcomes in the medium term, and increase the impact of ADB operations in reducing poverty in the long term.
ADB has completed four initiatives: strengthening the performance-based allocation policy, establishing the Results Management Unit, conducting an independent assessment of the 2002 reorganization of ADB, and formulating the new Human Resources Strategy. Implementing the remaining initiatives is generally on track and will be completed largely during 2005–2007.
We must manage everything we do for development results. This will take time, but without a doubt, MfDR is the golden thread—the foundation upon which the Reform Agenda rests.
MfDR entails results-based country strategies and programs, the primary guide to development strategy in each developing member country (DMC). A pilot country strategy and program was completed for Nepal in 2004 and prepared after unprecedented public consultations to reflect and act more on DMCs’ views and needs (see Local Views Matter).
Similar MfDR approaches to programming are being initiated for Bangladesh, Bhutan, Fiji Islands, Indonesia, Mongolia, Philippines, Uzbekistan, and Viet Nam as well as for regional cooperation strategies and programs.
Also this year, ADB is reviewing several key operational policies and strategies to focus them more sharply on reducing poverty and to better align them with its strategic agenda and operating principles.
For example, it is reviewing the implementation of governance and anticorruption policies, a private sector development strategy and the Medium-Term Strategy (2001–2005), as well as its approach to “capacity development” in DMCs.
In addition, ADB is developing new approaches to better serve the needs of middle-income developing member countries that borrow from the organization’s ordinary capital resources.
ADB continues to improve business processes and organizational structure to support effective implementation of operational policies, strategies, and approaches.
Under the Innovation and Efficiency Initiative (IEI), meanwhile, ADB is improving its operational efficiency, relevance, and responsiveness to better meet DMCs’ needs. It is focused on changes in all key parts of ADB’s operational cycle, such as procurement, safeguard policies, country strategy and program and business processes, new financial products, and on cost sharing and eligibility. ADB is also harmonizing various business procedures and practices with other development partners and aligning them with DMC initiatives to reduce transaction costs for DMCs and improve development assistance effectiveness.
ADB has completed an independent assessment of its 2002 reorganization and follow-up actions on the recommendations are being undertaken to better align its organizational structure for greater operational efficiency.
ADB is implementing a knowledge management framework to enhance knowledge sharing among clients and to become a better learning organization. Its information system is being strengthened in this regard.
A new Public Communications Policy that recognizes global trends in access to information, meanwhile, is near completion.
Replacing older policies on information and public disclosure, the policy will help ADB better engage its stakeholders and enhance their trust in ADB, and vice versa, thereby opening up new ways to increase the effectiveness of development programs.
ADB is also harmonizing various business procedures and practices with other development partners and aligning them with DMC initiatives to reduce transaction costs for DMCs and improve development assistance effectiveness
Much of the new work will depend on effective implementation of a new and stronger approach to staff management, and ADB is now implementing its new Human Resources Strategy, adopted in October 2004.
This will ensure high quality of human resources and a merit-based, transparent, and effective human resources management system. ADB developed a new performance management system that will provide a meaningful assessment of staff work and link it to results. The new system is now being implemented.
Effective implementation of the ongoing initiatives in a coherent and consistent manner remains a challenging task for ADB.
Monitoring and evaluating performance, close coordination and planning for interrelated initiatives, and prioritization and reallocation of resources are crucial.
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