Catalog

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p. 8 of 25 BACK | NEXT Introduction Background The need for change ADB's strategic reorientation External changes Practices of other multilateral development banks Policy framework Organizational and resource issues Recommendation

Resident Mission Policy : The need for change

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ADB's strategic reorientation

ADB is presently redefining its strategic orientation. While the complete formulation of the new strategy will be articulated in the long-term strategic framework, key elements are already in place. ADB’s vision for the new millennium is of an Asian and Pacific region free of poverty. ADB’s overarching objective is, therefore, to help the DMCs reduce poverty and improve the quality of life of all their people. This single objective will direct all ADB operations. Under the poverty reduction strategy, the fundamental emphasis will be to ensure that all operations contribute effectively to poverty reduction.

Poverty, in all its manifestations, is very much a local and grassroots problem. A key element in reducing poverty is to ensure that (i) global, regional, or national solutions are applied in a way that is relevant to local needs and capacities; (ii) the beneficiaries of poverty reduction programs participate in their design and implementation to ensure that services are delivered to poor beneficiaries; and (iii) misuse of resources is minimized. This requires local knowledge and local presence.

ADB recognizes that a key element in reducing poverty is growth, and that growth is strongest where it is led by the private sector. ADB is therefore developing a private sector strategy that will enable the private sector to contribute effectively to growth and poverty reduction. Implementing this strategy will call for much greater understand-ing of private sector dynamics in each DMC, greater interaction with the private sector, and a stronger link between ADB's public and private sector operations.

A key activity is supporting good governance in the DMCs. Economic development cannot occur in the absence of good governance, strong institutions, and appropriate policies. ADB’s commitment to this area is defined by its policies on governance and anticorruption. Addressing governance problems requires greater local knowledge, persistent and long-term engagement, and willingness to be visibly active in addressing matters such as corruption. ADB recognizes that these may be sensitive and difficult areas, and that working on them requires patience, tact, and consensus building. These matters need detailed knowledge, a “feel” for the way things work, and easy access to many different stakeholders; all are difficult from a distance. Most studies on governance issues rely extensively on local expertise.

ADB’s identity is defined by its unique mandate to foster development of the Asian and Pacific region. To fulfill this mandate, ADB must be relevant and responsive to the region’s particular needs and problems. To do this effectively, ADB must, in principle, be present in all DMCs where practicable. As an agent of change and knowledge institution, ADB must be open and sensitive to changes in the global development environment. Its strength should be to translate these changes into models and solutions that are most appropriate for the region and each DMC. ADB must also represent regional concerns, views, and interests at global forums. ADB must accelerate its efforts to build greater regional and subregional cooperation. As a regional institution, ADB has earned the trust and confidence of its DMCs. This is a major asset and positions ADB to effectively promote regional cooperation.

Incorporating these new dimensions and strategies into concrete projects for implementation will expand the complexity of projects still further, creating new challenges for the capacity of ADB and the DMCs. Complex projects require more extensive ADB involvement and regular supervision and interaction; these can be most easily undertaken with a strong local presence.

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