Publications

	Table of Contents
p. 2 of 9 BACK | NEXT I. Background II. ADB's Poverty Reduction Strategy III. Rationale for the Cooperation Fund IV. Objectives and Scope V. Outputs VI. Activities to be Financed from the Fund VII. Implementation Arrangements VIII. Funding Arrangements IX. Recommendation

Formulation and Implementation of National Poverty Reduction Strategies

---

II. ADB's Poverty Reduction Strategy

3. In November 1999, ADB’s Board of Directors approved the new Poverty Reduction Strategy.2 With the adoption of this strategy, poverty alleviation has become ADB’s overarching objective and all activities of ADB will be geared to achieving this goal. In operational terms, ADB will proactively assist all its DMCs to conduct comprehensive poverty assessments. Moreover, it will (i) engage in participatory discussions of these assessments with the DMCs’ governments and civil society representatives; (ii) work jointly with DMC representatives and in coordination with other donor communities, in the formulation of country strategies and programs (CSPs) that will reduce poverty and that ADB can effectively undertake; and (iii) forge partnership agreements between each government and ADB on programs of assistance to reduce poverty. The ADB Poverty Reduction Strategy also sets new lending targets and an annual implementation action plan has been drafted.

4. Changes within ADB are likewise in progress. Specifically, a presidential commission, chaired by ADB’s President, meets every quarter to review the progress in implementing the strategy. Additional staff with expertise on poverty reduction are being recruited and ADB staff members are being trained. ADB is also reorienting its research, data requirements, and administrative and operational guidelines. To ascertain that ADB’s intervention modalities will address the poverty issues of the DMCs, it is currently revising its methods of economic and social analysis. ADB is also strengthening its coordination channels with the donor community to ensure that their individual and collective actions will significantly result in poverty reduction in the DMCs.

5. In line with the internal reforms, ADB established the Poverty Reduction Unit within its Strategy and Policy Department (SPD). The unit’s primary responsibility is to oversee the implementation of ADB’s Poverty Reduction Strategy. In particular, the unit provides the analytical and operational framework that will serve as guideposts to ADB’s departments and offices in implementing the Strategy. The unit also periodically monitors and assesses ADB’s progress in effectively catalyzing its poverty reduction actions in DMCs with the end view of making it more responsive to and attuned with the DMCs’ development requirements.

6. In implementing its Poverty Reduction Strategy, ADB is committed to helping the DMCs prepare their respective NPRSs in a participatory manner and in collaboration with other international organizations and bilateral donors. The formulation of a NPRS that has obtained consensus among the DMC constituents is a priority exercise. The NPRS will be the basis of the poverty partnership agreements and ADB’s CSP for each DMC.

7. As of 1 January 2001, ADB has been placing much greater emphasis on the formulation of country operational strategies. This has taken the form of a CSP for each DMC. The CSP will ensure that activities earmarked for financing by ADB will be consistent with and will address the priority needs of the DMCs as identified in their NPRS and action plans.

Back I. Background	Next III. Rationale for the Cooperation Fund