Catalog

	Table of Contents
p. 10 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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D. Establishment of a new Regional and Sustainable Development Department

60. A unique element of the new structure is the establishment of the new regional and sustainable development department (RSDD). RSDD has four major responsibilities. First, to maintain quality and technical excellence across ADB. Thus, RSDD will be the sector and thematic center of knowledge for ADB. Second, to ensure ADB-wide consistency, RSDD will develop and monitor policies and guidelines for all thematic and sector areas. Third, it will be ADB’s center for compliance oversight. In this function, it will monitor compliance with all sector and thematic policies in general. More specifically, however, it will be mandated to ensure compliance with ADB’s safeguard policies. Fourth, RSDD will support ADB’s regional development functions; and develop and strengthen ADB’s role in linking the region to global networks and partnerships. The terms of reference of RSDD are in Appendix 4.

61. For these functions the department will be organized in four groups:

1. an environment and social safeguards division, responsible for compliance with ADB’s safeguard policies,

2. two divisions responsible for ADB’s thematic agenda:

   1. a poverty reduction and social development division
   2. a governance and regional cooperation division

3. two divisions responsible for the technical and sector agenda:

   1. a finance and infrastructure division
   2. an agriculture, natural resources and social sectors division; and

4. the NGO center.

62. Many of OESD’s current responsibilities, as well as those of the governance and poverty groups of SPD will be merged into this new department. To maintain high levels of technical excellence and quality standards in ADB, RSDD will be staffed by experienced staff with recognized qualifications and abilities in their fields.

63. With respect to its role in quality assurance, while the quality of ADB operations will remain the responsibility of the regional departments, RSDD will provide support for quality improvement to regional departments by developing and sharing best practices as quality standards for project operations; developing guidelines and tools for the use of operational staff; and supporting staff skills development. RSDD will be responsible for establishing medium term and annual sector work programs. RSDD will maintain a database on sector work in each sector, and ensure collection and dissemination of relevant sector work through external networks. Sector work may be undertaken by RSDD staff, or by operational staff depending on the need and expertise available. RSDD’s quality assurance role is particularly important in capacity building. The governance and regional cooperation division will include expertise in this area. It will support the regional departments by providing best practice advice, guidelines, and information.

64. To ensure that knowledge is horizontally integrated across the different departments in ADB, sector and technical experts in those departments must be closely linked in communities of practice. For this purpose, it is essential to establish effective mechanisms through internal sectoral and thematic networks. Networks will be formalized so that the interaction of RSDD specialists with operational staff is clearly defined and effectively implemented to ensure a continuing dialogue amongst them. Internal networks will be managed by RSDD staff. Periodic sector operational review meetings will be held by RSDD with sector managers to review practices, performance, and human resource issues. Similar meetings will be held by thematic networks. Specific processes for the effective functioning of networks will be developed by the Working Group on Business Process Change (para. 95).

65. To meet its responsibility for policy development, RSDD staff will work through the networks in determining the areas for policy development, and in ensuring that policy development benefits form the widest possible range of expertise available in ADB. RSDD will also utilize its external networks to incorporate the latest developments in these areas into ADB policies, and for wide consultation in the policy preparation process. RSDD will monitor policy implementation through periodic reviews, as well as through its association with the regional departments through the networks. In these reviews it will work closely with OED. Finally, in the overall development and monitoring of sector and thematic policies RSDD will work closely with SPD to ensure their consistency with the overall strategic priorities of ADB.

66. RSDD is explicitly mandated to ensure compliance with ADB’s safeguard policies. The Environment and Social Safeguard Division of RSDD will take the lead and coordinate this departmental function. At important stages in the project cycle such as MRM, RSDD will provide formal advice to the Chair and concerned departments giving its views on the project quality and compliance with safeguard policies. At this stage, this is considered sufficient to ensure that compliance matters are fully attended to by regional departments and no “sign-off” by RSDD is required. Should it become necessary, a more formal clearance procedure can be considered in future. To avoid any conflict of interest, RSDD will however not normally be involved in the design of individual projects, or operational work.

67. RSDD will be responsible for ADB’s regional cooperation strategy. This will strengthen ADB’s regional focus and operations, and its linkages with regional institutions; establish ADB as a “knowledge catalyst” and a recognized regional center for development; and cultivate and strengthen ADB’s role in linking the region to global networks and partnerships. External networks will also be important sources of information sharing at both the regional and the global level. The regional departments will be responsible for participating in existing subregional networks and developing new networks. At the global level, networks already exist among the multilateral finance institutions for environment and social development. There are similar global and regional sectoral networks in other sectors. RSDD staff will participate in and represent ADB in these networks. Staff from operational departments will be encouraged to participate as necessary for professional development. RSDD’s regional cooperation activities will be undertaken at three levels:

1. At the regional level, RSDD will facilitate cooperation in sectoral and thematic areas by monitoring regional developments extending beyond the subregional programs. It will undertake cooperation activities that go beyond the remit of the regional departments, such as climate change, rural Asia studies, and regional energy cooperation. In consultation with regional departments, RSDD will implement the regional cooperation strategy currently under development. It will ensure the strategic use of regional TA funds, by acting as the secretariat for the RETA Screening Committee, within the overall TA management system coordinated by SPD.

2. At the subregional level the five regional departments will be responsible for all regional cooperation activities. RSDD would only get involved when its help is needed for subregional work that crosses the geographical lines between departments. RSDD would have a quality assurance role for all subregional cooperation programs, similar to its role for sectors and thematic areas.

3. RSDD will be responsible for regional cooperation with other multilateral bodies on thematic and sectoral issues. (Cooperation at the institutional level will continue to be undertaken by SPD).

As RSDD is a new type of department for ADB, its role, responsibilities, staffing and work processes may need fine-tuning in the light of experience. This will be undertaken after internal reviews at the appropriate time.

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