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	Table of Contents
p. 12 of 14 BACK | NEXT I. Introduction II. Taking Stock of Progress III. The Current Development Environment in the Region IV. The Changing Role of the Bank V. The Bank's Strategic Directions FRO 1995-1998 VI. Organizational Implications and Capacity Building Requirements of the Bank A. Key Operating Principles B. Revised Business Practices C. Revised Accountability System D. Management Information System E. Implementation

The Bank's Medium-Term Strategic Framework : VI. Organizational Implications and Capacity Building Requirements of the Bank

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C. Revised Accountability System

46. The Bank will revise and strengthen its accountability system to support the introduction and implementation of its revised operating focus. The existing accountability system within the Bank is characterized by (i) a focus on activities, inputs an outputs, with inadequate emphasis on the achievement of objectives and impacts (see Figure 1 ); (ii) an emphasis on quantitative results as reflected in loans and TAs approved, lending levels and disbursements, with relatively unclear yardsticks for quality: (iii) a bias for loan TA approvals as against their implementation and impact; and (iv) rather diffused and shared responsibilities among various operational departments and staff levels, as against clearly articulated performance objectives by operating area and position. The Bank does use its post-evaluation exercises and related project success/failure criteria to assess the effectiveness of Bank operations; however, the timing of such evaluations does not allow such evaluation reporting to be used as annual performance planning and accountability setting tools for Management and staff.

47. While the use of loan and TA approvals, disbursements and project completions is necessary plan and set accountability for performance, they establish performance measures only at a first level of results (termed "outputs" in Figure 1). Th achievement of these outputs does not by itself indicate that the Bank is indeed performing its development role adequately and creating targeted impact "on the ground." There is a need to incorporate a second level of results (termed "operating objectives" in Figure 1) for which the Bank should also plan, monitor and establish clear performance measures. These would include (i) policy agendas to be achieved by sector and DMC, (ii) capacities for development management to be strengthened, (iii) sector objectives to be achieved with respect to productive capacity and infrastructure creation, and (iv) regional cooperation objectives. The Bank cannot consider itself primarily accountable for the achievement of these objectives, which essentially remain the responsibility of the government. The Bank will, however, take accountability for the delivery and quality of a program of support in these areas, which it will develop and implement in collaboration with each borrowing DMC. Such support must also be viewed as a continuing process, over a perio of time, rather than simply a specific project or TA. Thus there is a need to take longer term perspectives and ensure the integration and continuity of work programs. The third level of results which the Bank must monitor (and does through its post-evaluation exercises), is the longer term impact of its policy/capacity building support and of its project investments on the government's and its own economic social, and environmental objectives.

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