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p. 2 of 9 BACK | NEXT I. Introduction II. Strengthened Bank Representation in Donor Countries III. Bank Representative Offices in Donor Countries IV. Bank Resident Representation for Europe, Japan and North America V. Representation of Other Multilateral Financial Institutions in Donor Countries VI. Proposal for a North American Representative Office VII. Cost of the Bank's Representative Office in North America VIII. Organizational Arrangements IX. Recommendations

Bank Representative Offices in Donors Countries: Establishment of a North American Office

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II. Strengthened Bank Representation in Donor Countries

A. Meaning of Strengthened Bank Representation

3. The Bank's strengthened representation in donor countries refers to substantially increased, more varied, and more direct interaction by the Bank with relevant constituencies in those countries.³ Such interaction would include activities initiated by representative offices in donor countries as well as those originating from the Bank's Headquarters.

4. There are four critical elements of strengthened Bank representation in donor countries:

1. the articulation and dissemination of the achievements of the Asian and Pacific region and of the Bank, as well as of the Bank's views and positions on priorities and policies, reflecting an emphasis on the interests of the Bank's developing member countries (DMCs}, while keeping Headquarters informed of the views, concerns, and interests of the Bank's major constituencies in donor countries;

2. mobilizing support for the Bank among constituents in donor countries through strengthened, more accessible and demonstrable (to donor constituents} accountability and transparency in Bank operations;

3. assistance by the Bank in policy and decision-making processes concerning development assistance in donor countries, and in a manner that provides for the Bank's timely involvement and provision of information required from it; and

4. explanation by the Bank of why it is in the interests of concerned constituencies in donor countries to support the Bank.

B. Need for Strengthened Bank Representation

5. Given the competing demands for official development assistance in the 1990s, each region and each multilateral financial institution (MFI} must make a compelling case for continued donor support. The MFls are expected to meet more rigorous standards of performance and will be subject to closer scrutiny and accountability.⁴ The support of member governments and the general public in donor countries is therefore necessary for sustaining confidence in the MFls, including the Bank.⁵

6. While located in the region, the Bank is a multilateral institution. It draws strengths from its multilateral character. At a time of competing demands for limited official development assistance, combined with an enhanced and firm Bank commitment to accountability and transparency, the opportunity cost to the Bank of not strengthening its representation in donor countries is perceived to be very high. A reduction in donor support would be equivalent to a loss in the Bank's multilateral character a loss it simply cannot "afford." Moreover, the environment in which decisions on development assistance are made in donor countries has become increasingly complex, involving a wide range of constituencies from the government and nongovernment sectors, the media, and the general public. Therefore, the Bank should strengthen its representation in donor countries and with multilateral organizations in them, and build relevant constituencies. Strengthened representation would facilitate and sustain the appropriate engagement and participation of donors countries in Asia through the Bank, while maintaining the essential multilateral character of the Bank.

7. It is also considered essential that donor countries particularly those outside the region understand and appreciate that multilateral development assistance has played and continues to playa useful catalytic financial and development role, being generally put to good use by the DMCs. The rate of return on multilateral development assistance, commercial, and other private international capital flows to the region has been high, with the Bank as an important and substantial mechanism for achieving those returns through success in fulfilling its financial, developmental, and regional roles. Donor countries need to be aware of and to understand and appreciate the mutuality of interests between them and the Bank's DMCs in 'the region's progress, as well as the DMCs' concerted efforts to serve those mutual interests. Therefore, it is in the long-term interest of the international community of nations to assist by various means, including Bank operations in DMCs, in the region's continued development.

8. In fulfilling its mission and strategic roles, the Bank frequently relies on its complementarity and/or direct cooperation with other international organizations concerned with investment of development funds in the region.⁶ Strengthened interagency collaboration is likely to play an increasingly important role in the Bank's own resource mobilization efforts. Many of the international organizations suitable for interagency collaboration are located in donor countries.

C. Responsibility Within the Bank for Strengthened Representation

9. Representation in donor countries and with the multilateral organizations in them is a Bankwide responsibility requiring the knowledge and expertise of the Bank. Therefore, strengthened Bank representation in donor countries and with concerned multilateral organizations should take a variety of forms, including Bank representative offices in donor countries as well as enhanced activities and services originating from Bank Headquarters. On matters relating to (i) co-financing, (ii) the Bank's financial operations, (iii) business opportunities, (iv) recruitment, and (v) use of the media, strengthened Bank representation in donor countries will be effected through specialized services originating from Bank Headquarters with the involvement of representative offices in donor countries only when appropriate and cost-effective.

10. The Bank's official channel of communication with member countries will continue to be through the Offices of the Executive Directors. Strengthened Bank representation in donor countries will take place in close coordination with the concerned Offices of the Executive Directors. However, in view of the real need to strengthen such representation substantially through more specialized Bank services from Headquarters, as well as the unique opportunities afforded by reprf3sentative offices, there is no inherent conflict or perceived duplication with the responsibilities of the Bank's Offices of the Executive Directors.

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