Catalog

	Table of Contents
p. 4 of 13 BACK | NEXT I. Development Challenges for the Asia and Pacific Region II. ADB’S Medium-Term Strategy (2001-2005) A. Differentiating Between Countries B. Operations in a Subregional Context C. Applying the Operating Principles III. Aligning the Organization with the Strategy A. Align the Organizational Structure and Business Processes B. Develop a Learning Organization C. Make Assistance Modalities More Flexible D. Improve Integrated Resource Management IV. The Strategy and the Planning, Programming, and Budget Process

Medium-Term Strategy

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II. ADB’s Medium-Term Strategy (2001-2005)

11. The MTS is the bridge between the LTSF and the activities that ADB will undertake in its DMCs over the next five years. The MTS defines operational priorities, within the context of the strategic agenda, that directly address the medium-term challenges for the region.¹¹ The MTS also identifies the organizational changes and requirements necessary for implementing the operational priorities and operating principles with greater efficiency. The MTS is designed to ultimately enhance the development impact of ADB assistance.

12. The MTS (2001-2005) will support policy and institutional strengthening of the DMCs; investments in several key areas will be supplemented by this support. These areas include priority physical infrastructure necessary to promote growth and productivity in both rural and urban areas, and essential social infrastructure and services for human development to support pro-poor growth. Agriculture and natural resource management will be supported to promote growth and environmental sustainability. Financial infrastructure and systems will be strengthened, as will both public and private sector governance systems, to support broad-based growth, enhance job creation through private sector development, and increase development effectiveness. These operational priorities will be implemented selectively at the country and subregional levels. The needs and priorities of each DMC for addressing poverty reduction and achieving the IDGs will help determine the choices that ADB makes in each country and for each subregion.

13. ADBs helps the DMCs meet the medium-term challenges by providing investments combined with technical assistance (TA) support; economic, sector, and thematic studies; and policy dialogue. ADB’s unique strength as a development financier is its knowledge of the region and its experience at the country and subregional levels. ADB will strengthen this knowledge and utilize it to supplement its investments by (i) addressing critical institutional constraints, and economic and sector management issues; and (ii) improving policy and regulatory frameworks. ADB’s financial support alone is not substantial from the point of view of the DMCs capital requirements. However, by packaging and supplementing its loans appropriately, ADB can address the critical constraints to development in the region over the medium term, and provide strong leverage for the overall investment undertaken by the DMCs and external partners.

14. ADB must ensure selectivity in its interventions and in doing so will be guided by the operating principles specified in the LTSF. Applying the operating principles to its operations will help ADB ensure country ownership of the development agenda, develop long-term commitments with its DMCs, work in alliance with all development partners, and ensure development impact.

15. The country strategy and program (CSP) for each DMC will be the mechanism by which ADB’s strategic agenda will be operationalized at the country level. ADB will develop a CSP for each DMC, catering to the specific needs and conditions of the DMC and reflecting the operational priorities of the MTS.¹² The CSP for each country in a subregion will also specify the regional cooperation activities that ADB will undertake at the subregional level. On the basis of these activities, an ADB-wide regional cooperation plan will be developed.

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