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The need for a strategy
The strategy
>> Overview
Strategic thrusts
Operational priorities
Country-specific strategies
The required internal changes
The implementation plan
Private Sector Development Strategy : The strategy

Overview

Identifying the private sector as the key to sustainable, rapid growth, the PSD strategy aims to help expand and strengthen private sector participation in the development of the DMCs. The strategy is designed to provide a systematic and coherent framework within which ADB will seek to promote the private sector to support growth and reduce poverty. Comprising the strategy are three thrusts of ADB’s PSD efforts. These will be pursued primarily in four priority operational areas that can make the greatest impact on the private sector’s contribution to pro-poor growth. While the strategy will guide ADB’s PSD activities across the region, it will be operationalized at the country level as part of ADB’s operational strategy for individual DMCs. To make the strategy work, ADB will need to institute internal changes relative to its operational orientation, its mix of staff skills, and its processes and procedures.

In formulating the strategy, five factors have been considered:

  1. ADB’s overarching objective of poverty reduction;
  2. the development challenges facing the region;
  3. the private sector-related activities of other multilateral development agencies, particularly those operating in the region and with which ADB must coordinate its activities (Appendix 2);
  4. ADB’s own institutional strengths (Box 3); and
  5. lessons learned from ADB's existing PSD activities. The strategy recognizes that ADB's financial and human resources are limited, so that its PSD assistance must look for leveraged interventions and must be selective and strategically focused.

Box 3: Institutional Strengths of ADB

The Asian Development Bank (ADB) has distinctive strengths that make it an effective development partner for the developing member countries. It is headquartered in the region and focuses exclusively on the region. Thus, it is able to develop a close understanding of the region's needs. In addition, regional members constitute a majority of its shareholding structure. This gives greater ownership of ADB's strategic orientation by the region. At the same time, the presence of nonregional members provides global perspectives to help tackle regional development issues. ADB's broad cross-country and multidisciplinary expertise enable it to facilitate the dissemination of best practices and lessons learned across the region. Its status as a multilateral institution, whose operations are open to scrutiny by all member countries, makes it effective in the role of an impartial adviser and honest broker in facilitating reform and investment. ADB undertakes, under the same roof, grant-financed technical assistance, public sector lending, and private sector finance; thus, if various departments of ADB work well together, it can easily deliver synergistic solutions to development challenges. Also, because of the size of the development challenges, it is important that ADB be part of the cooperative and inclusive approach to assistance.


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