Catalog

	Table of Contents
p. 5 of 6 BACK | NEXT Foreword I. The Asian Development Bank's (ADB) Mission II. A Framework for Poverty Reduction: Pillars of the Poverty Reduction Strategy III. The Strategy IV. Implementing the Strategy Appendix

Enhancing the Fight Against Poverty in Asia and the Pacific: The Poverty Reduction Strategy of the Asian Development Bank

---

IV. Implementing the Strategy

52. Implementation of the PRS has been and will continue to be accorded paramount priority; ADB is committed to poverty reduction and will lend its weight and influence to achieve it. This chapter sets out important actions and activities that will be carried out in this endeavor.

A. Managing for Development Results

53. ADB management and operations will become increasingly results oriented to make demonstrable improvements in the development impact of operations. A series of management reforms enhance openness, accountability, and responsiveness. These include

1. establishing a management-for-development-results (MfDR) unit
2. developing strategic and operational processes/procedures for MfDR
3. mainstreaming MfDR throughout ADB
4. improving human resource management systems and processes and implementing a new human resource strategy
5. aligning operational policies, strategies, and approaches with ADB’s key strategic agenda including the enhanced PRS and long-term strategic framework
6. improving ADB’s approaches to supporting capacity development in DMCs

In line with the overall MfDR framework, a comprehensive, resultsoriented monitoring and evaluation (M&E) system will be established at the project, sector and thematic, country, and institutional levels.

54. M&E at the Project Level. Strengthening project performance management will ensure that contributions to outcomes and to the pillars and thematic initiatives specified in CSPs are clearly established. A logical framework for each project will continue to specify its contribution to sector outcomes. Project teams will ensure quality of design and effective implementation and self-assessment of projects at completion. This will be supplemented by independent post-evaluations by Operations Evaluation Department.

55. M&E at the Sector and Thematic Level. ADB will monitor, evaluate, and report on the progress of PRS implementation in sector operations and thematic priorities. Annual reports will be prepared with inputs from regional departments, sector and thematic networks, and the project performance management system that summarize operations in the sector and thematic area during the year and outline plans for the following year. The reports will assess the success in implementing sector and thematic policies or strategies, in improving technical quality, in aligning and implementing projects with the PRS, in mainstreaming thematic considerations, and in contributing to knowledge management. The responsibility for sector and thematic reports will rest with RSDD.

56. M&E at the Country Level. Consistent with the ADB-wide MfDR framework, all new CSPs will include a results framework (that includes a monitoring framework) that links the constraints to poverty reduction identified in a NPRS with the proposed program, desired outputs, and expected outcomes. Country outcomes will be monitored in terms of the three pillars and thematic priorities and will be aggregates of all ADB interventions—both lending and non-lending—in the country. Country teams will be responsible for monitoring the PRS at the country level. CSP updates will monitor progress on outputs and outcomes.

57. M&E at the Institutional Level. The impact of the PRS on poverty reduction at the regional level will be monitored through achievement of MDGs 1–7 (11 targets and 31 indicators). While it is recognized that results cannot be solely attributed to ADB’s efforts, it is nonetheless important to monitor trends to ensure that such efforts are effectively aligned with the MDG targets. The expected outcomes of PRS implementation are improvements in CSP and project outcomes, in DMC policies and institutional capacity for poverty reduction, and in ADB’s capability to reduce poverty. The outputs of PRS implementation will be measured in the following dimensions:

1. improved quality of CSPs
2. improved quality of projects (improved alignment of ADB operations with the key components of the PRS)
3. effective project implementation
4. enhanced contribution of a knowledge base supporting poverty reduction
5. stronger partnerships for achieving the MDGs

The overall responsibility for institutional monitoring will rest with RSDD supported by the Strategy and Policy Department. An annual report will be prepared summarizing the assessment at the institutional level of the previous year’s experience in implementing the PRS.

58. Project Classification for Tracking of Inputs. Where the poor are “trapped” by geographical, cultural, or social circumstances, targeted interventions are required to ensure equal opportunities to overcome those disadvantages and to participate in mainstream development. Although no numerical target will be set, projects will be classified as targeted interventions if they focus on households, on specific geographic areas, or on sectors/subsectors directly supporting achievement of the MDGs relating to nonincome poverty.

B. Fostering Learning and Developing New Tools

59. Putting knowledge—global, regional, and local—to work in the campaign to reduce poverty is essential for successful implementation of the PRS. Effective dissemination will ensure that lessons learned from current operations are utilized effectively in planning future ones and in assisting DMCs in formulating strategies, plans, and programs to combat poverty.

60. In some situations, new instruments or new ways of using existing ones may be required. Piloting new approaches to poverty reduction has already started in some DMCs. Lending to local governments to build capacity to reduce poverty gained momentum after the 1999 PRS was adopted especially in larger countries. Variants of existing instruments already in use will be formalized for more appropriate and wider application. These include:

1. SWAps in country programs to partner with other agencies more effectively for achieving sector goals
2. policy loans for NPRS to facilitate long-term support for their implementation
3. an adaptable program loan to allow greater flexibility for supporting policy reforms and institutional development
4. greater use of pilot loans to test innovative approaches to poverty reduction
5. promoting social investment funds
6. supporting NGOs that have proven track records in working with the poor

A grant element has already been introduced in Asian Development Fund IX.

C. Building ADB’s Capacity to Implement the Enhanced Strategy

61. Financial Capabilities. ADB’s ability to implement the PRS depends on the continued availability of financial resources, particularly concessional resources. There is an urgent need for donors to commit resources over the medium term to improve the predictability and sustainability of financial assistance, especially when DMCs launch medium-term strategies and programs for poverty reduction. High-quality analytical work and sustained support for capacity development are critically dependent on adequate and effectively used grants. Similarly, supporting countries at risk of not achieving the MDGs and those unable to sustain further external borrowing will require access to Asian Development Fund resources. In line with the middle-income framework, ADB is simplifying borrowing conditions and improving the lending terms for borrowers of ordinary capital resources to enhance the poverty focus of its operations.

62. ADB will widen the range of available financial instruments and modalities to better tailor its assistance to the complex needs of poverty reduction. It will aim at providing grant assistance on a selective basis to assist the poorest countries; it will support MDG achievement in middle income countries; and it will explore new ways to augment resources for regional cooperation.

63. An effective global partnership for development is essential for any poverty reduction strategy to succeed. Slow progress in generating international assistance for poverty reduction and in attaining the MDGs presents a serious risk in PRS implementation. ADB will support international efforts to advance MDG 8.

64. Organizational Capacity. ADB will continue strengthening its organizational capacity to effectively pursue poverty reduction in its DMCs. The responsibility for implementing the PRS primarily rests with operational departments supported by RSDD; the functions of both will be strengthened for this purpose. ADB’s organizational competence is being strengthened in line with the new strategy on human resources. Better balance in the distribution of workloads and a closer alignment of staff incentives with the goal of poverty reduction will be pursued, in particular for preparing highquality country analytical work and CSPs, for improving project implementation performance, for promoting partnerships, and for sharing knowledge and innovations for poverty reduction.

65. To implement an operational strategy effectively, the PRS must be well understood throughout the organization. ADB will continue to build the required knowledge base through well-focused skill training and mentoring programs. ADB will provide training in poverty reduction methodologies and techniques for all operational and new staff, including heads of departments and managers.

66. To sharpen its country focus, ADB will enhance the capacity of its resident missions to monitor and report on poverty and to assist in integrating poverty in ADB operations. The latter will require the missions’ continued active involvement in country programming and policy dialogue in general and an enhanced role in project administration. Resident missions will be further encouraged to forge partnerships with development partners, including bilateral agencies and NGOs, to complement their own capacity for poverty assessment and analyses.

Back III. The Strategy	Next Appendix