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Governance: Sound Development Management

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Policies and Strategies

WP1-95
Publication Date: August 1995
In stock

ADB recognizes the importance of governance, and the way it affects economic growth and development. Hence, ADB became the first multilateral development bank to adopt a special policy on governance.

ADB's governance policy

  • defines governance in terms of ADB's operations and activities
  • identifies four elements that define the focus of ADB's governance initiatives:
    • accountability
    • participation
    • predictability
    • transparency
  • explains the factors that intensified ADB's concern with governance issues
  • discusses the general considerations affecting ADB's approach to governance
  • relates the elements of good governance to ADB operations
  • indicates specific ways for ADB to address governance issues and promote the elements of good governance in the DMCs

ADB has recently reviewed its implementation of the Governance Policy.

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Contents

Executive Summary

Introduction

Good governance defined

The elements of good governance

Accountability

Participation

Predictability

Transparency

Interlinkages among the elements of governance

The Bank’s concern with governance quality

Policy context of the Bank’s project lending

Focus on equity and development performance

Project quality

The East Asian experience

Outlook for the future

The Bank’s approach to governance issues

The Bank’s charter and governance activities

Need for flexible country-specific approaches

Promoting the elements of good governance in Bank operations

Building governance capacity

Public sector Management

Public enterprise management and reform

Public financial management

Civil service reform

Participatory development processes

Participation of beneficiaries and affected groups

Public sector/private sector interface

Decentralization of public and service delivery functions

Cooperation with NGOs

Legal frameworks

Information openness

The Bank’s modalities for enhancing governance in DMCs

Resource implications

Reporting arrangements


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