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p. 1 of 26 BACK | NEXT I. Introduction II. Changes in Development Environment and Agenda III. Themes for Organizational Effectiveness IV. Objective and Principles of Organizational Change V. Analysis of Options VI. Main Features of Organizational Change VII. Complementary Changes VIII. Challenges and Responses IX. Budget Implications and Implementation Plan X. Conclusions XI. Recommendations

Reorganization of the Asian Development Bank

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I. Introduction

1. Throughout the 1990s, the Asian Development Bank (ADB) has faced numerous challenges and taken on new, complex policy initiatives, culminating in the adoption of the Poverty Reduction Strategy¹ in 1999. All these initiatives have been consolidated in the Long-Term Strategic Framework, 2001-2015 (LTSF)², which charts ADB’s agenda for the next 15 years.

2. The LTSF recognizes that implementing ADB’s strategic agenda requires a review of its organization, business processes and products. On 18 January 2001, the President established a framework for a review of the organization of ADB. The objective of the review is to assess the capacity of the current organization of ADB to effectively and efficiently implement the LTSF, and to recommend changes where necessary.

3. The review has been guided by the President who chairs a steering committee of senior ADB staff. A working group³ undertook detailed work, with the support of a small secretariat. The review was divided into three phases: phase I undertook a diagnosis of the current organization; phase II developed and analyzed options to address the issues raised by the diagnosis; and phase III, in which the selected option was developed in detail. Previous organizational changes in ADB and the experience of other development agencies were taken into account.⁴ Staff were consulted through focus groups and individual meetings, and three external advisers were invited to provide guidance during the early stages of the review.⁵ A working paper⁶ with proposals for changes in the organization was presented to the Board on 31 July 2001.

4. Following the Board discussion of the working paper, the issues raised have been addressed in a detailed Question and Answer paper, and through a Board seminar. This paper presents the revised recommendations for organizational change.

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