Catalog

	Table of Contents
p. 8 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 A. New Geographic Regions B. Enhancing Country Focus: New Regional Departments C. Function and Structure of Regional Departments D. Establishment of a new Regional and Sustainable Development Department E. Role and Responsibilities of Vice Presidents F. Establishment of a Management Committee G. Strategy and Policy Department H. Upgrading the Private Sector Group to a Private Sector Operations Department I. Office of External Relations J. Economics and Research Department K. Office of the Secretary / Office of the General Counsel L. Knowledge Management M. Project Administration and Portfolio Management N. Risk Management O. Checks and Balances VII. Complementary Changes VIII. Challenges and Responses IX. Budget Implications and Implementation Plan X. Conclusions XI. Recommendations

Reorganization of the Asian Development Bank : VI. Main Features of Organizational Change

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B. Enhancing Country Focus: New Regional Departments

46. As stated in para. 15, broad-based issues such as poverty reduction, good governance, and strengthening of public sector capacity require a countrywide approach. Poverty in a DMC can only be effectively analyzed and addressed on a cross-sectoral and countrywide basis. The same arguments also apply to the other items on ADB’s strategic agenda such as social development, environmental sustainability and private sector development. They can be better understood and more coherently addressed by taking a perspective that focuses on the totality of country needs, and goes beyond the traditional sector-based programs of assistance. To achieve this holistic perspective, the present projects and programs departments will be restructured and combined into four new regional departments, corresponding to the regions mentioned in para. 44 (excluding the Pacific Department, currently OPO, where these roles are already combined). Combining programs and projects functions in one department will enable ADB to better implement its strategic agenda in individual DMCs. It will place country focus at the center of ADB’s operational programs.

47. Country focus includes having in-depth knowledge of a country, being responsive to a country’s needs and having clearly established accountabilities for ADB’s work in a DMC. It means ensuring that country considerations and priorities drive sector and project decisions. From a DMC perspective, it means having a readily identifiable and accessible staff member who is responsible for ADB work in a country.

48. ADB has steadily moved from a “projects and sector focus” to a country focus, since the 1995 reorganization into east and west regions. The RM Policy of 2000 was another major step in increasing country focus. In addition to these organizational steps, operational business processes for country programming were redesigned and implemented from 2001 to ensure that the country strategy drives ADB’s program of activities in all DMCs.¹³ The central tool for this is the country strategy and programming process, resulting in the country strategy and program (CSP). The CSP process will gain considerable coherence and effectiveness by having the country team (para. 56) now under one department.

49. These changes will be carried further by the new structure. ADB’s knowledge of its DMCs will be improved through well-staffed RMs in each DMC; also, each staff member at HQ will work in a smaller number of countries and sector managers will cover fewer countries and know them better. Responsiveness to DMCs will be improved through the unified regional structure with single point decision-making, and the increase in and strengthening of RMs following the approval of the RM Policy in 2000. Accountability for ADB operations in a DMC will be significantly enhanced as one staff member, the regional director at department level, will be accountable for each DMC. The CSP will be prepared jointly by a country team from within the regional department. Finally, on accessibility, the resident representative is the principal point of contact for the DMC.

50. A merged programs and projects department will also take a more comprehensive subregional perspective in both design and delivery of a program of assistance to DMCs. It will enable a more holistic and integrated approach to subregional cooperation.

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