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p. 13 of 27 BACK | NEXT Executive Summary I. Introduction II. The Performance-Based Allocation Policy III. Lessons, Issues, and Directions IV. Enhancements to the Policy A. Principles to Guide Revisions B. Country Performance Criteria C. Country Ratings D. Proposed Allocation Formula E. Extra-Formula Allocations F. Disclosure G. Monitoring the Policy H. Summary V. Implementation VI. Recommendation Appendixes

Review of the Asian Development Bank's Policy on the Performance-Based Allocation of Asian Development Fund Resources : IV. Enhancements to the Policy

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A. Principles to Guide Revisions

64. The policy covers the allocation of both ADF loans and grants across countries. A separate framework guides eligibility for grants.³⁰ Proposed revisions to the policy are guided by a number of principles. These seek to (i) improve CPAs; (ii) give increased weight to governance; (iii) strengthen the link between performance and allocation; (iv) sharpen ADF’s focus on small countries; (v) clarify and refine criteria to guide allocations to support special needs, subregional projects, and weakly performing countries; (vi) deepen client involvement in and understanding of PBA; (vii) improve transparency and accountability; and (viii) reduce transaction costs and streamline implementation. These enhancements are in the interests of ADF donor shareholders and borrowers. Revisions to the policy should also contribute to institutional efforts to manage better for development results.

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