Catalog

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p. 12 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 : II. ADB’S Medium-Term Strategy (2001-2005)

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D. Improve Integrated Resource Management

47. ADB must ensure better assessment of the cost of delivering the CSP and adequate resourcing of country programs. Integrated resource management must be further developed for ADB operations, and better efforts will be made to strengthen the linkage between strategic objectives, work programs, and resource allocation. This process will include better identification of staff resources and other operational requirements at the CSP level, which will then feed into the budget process (para. 50). A particular CSP will contain several project preparatory TAs, loans, advisory TAs; and several sector studies (ESW), and will require policy dialogue, aid coordination, and NGO and civil society consultations. At present, resource requirements for delivering ADB’s operational program are being identified at the regional assistance plan level. The process will be refined and updated with a view to assessing the resource requirements at the country and subregional level. Not resourcing the CSP accurately can lead to one of two results. If resources are not sufficient, either ADB will not be able to deliver what it is committing itself to, or it will deliver low-quality products.

48. With performance-based allocation in place, ensuring that all activities are appropriately resourced will be even more important. The CSP for ADF countries that are good performers will need to be resourced differently than for those that are not, because a different emphasis will be placed on different activities. Poor performers will have more emphasis on ESW, policy dialogue, and building institutional capacity, prior to, or accompanying, an effective investment program. Thus, different skills will also be required on the part of ADB to deal with different ADF countries. In addition, due to the uncertainty of a more complex agenda and product design, what is included in the pipeline may need to be increased to allow for larger overprogramming. More resources may, therefore, be required to manage a larger pipeline.

49. Delivering the MTS agenda will require resources. Lending operations, guarantee facilities and commercial co-financing will constitute by far the bulk of ADB assistance. However, with the MTS focusing on effective institutions and policies as well as on broad-based development and regional cooperation, sufficient grant funding must also be insured. ADB will also need to actively seek additional sources of financing, in particular through partnerships on its strategic agenda with regional institutions, bilateral funding agencies, and possibly private foundations. In addition to grant resources to finance TA operations, demands on administrative resources will increase significantly as, in spite of greater selectivity, assistance programs will become much more staff and skills intensive. Selectivity will be crucial to keep the budget within the availability of projected resources. Finally, enhancing the quality of ADB assistance and fully using its potential by making it a learning organization will also have a cost in terms of staff resources and time, training programs, and ICT investments. More integrated resource management and a review of the financing of some operations will lead to better use, targeting, and management of resources.

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