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

B. Operations in a Subregional Context

22. Subregions, composed of groups of neighboring countries, such as South Asia, Central Asia, Southeast Asia, the Mekong, and the Pacific Island economies, provide an important context for ADB operations. Countries that share the same "neighborhood" often also share cross-border development constraints and opportunities that allow the leveraging of limited resources beyond a single country. This can lead to subregional cooperation initiatives as a basis for addressing domestic challenges more effectively. Therefore, operational priorities relate not only to individual countries, but also groups of countries. Selectivity in operations in a sub-regional context can emerge from either the subregional or country level. From a subregional starting point, it will involve the emergence of operational priorities for ADB based on an assessment of subregional challenges and constraints, such as particular cross-border environmental problems, or shared opportunities, such as infrastructure to promote growth and poverty reduction. From a country-based starting point, it will involve the identification over time of particular operational priorities that emerge as individual country strategies are implemented, and lead to priority areas for the subregion as a whole. Examples would be particular types of financial or public governance issues that seem to be common to a group of countries in a given subregion.

23. While subregions are a relevant context for operations, countries may have important similarities from the perspective of development needs that go beyond subregions and do not arise from "neighborhood effects." For example, Nepal and the Lao People's Democratic Republic, two very poor landlocked countries in different subregions, may share characteristics and development needs that allow for a common strategic focus and operations. Therefore, learning from experience and practices that cuts across countries and subregions must be facilitated. Over time, experience from operations at the country and subregional level will also provide the basis for adjusting ADB's operational priorities as an institution. For example, certain issues in promoting effective institutions, or linkages between the provision of physical infrastructure and institutional strengthening or between rural development and social development, may emerge as relatively more relevant in a diversity of countries and subregions over time. The emergence of subregional priorities over time will provide ADB with a clearer basis for allocating its resources and building capacity to deal with these priorities.



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A. Differentiating Between Countries
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C. Applying the Operating Principles

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