Catalog

	Table of Contents
p. 9 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

---

External changes

Clearly ADB’s strategic reorientation must respond to changes in the global economy and in development practice. This paper will not attempt to evaluate all such changes that affect ADB, which is better done by the long-term strategic framework. However, several issues relate closely to the present topic.

The Asian crisis marks a watershed in Asia’s development path in (i) the way that development is conceived and (ii) the actual implementation of development policies. Development institutions and developing countries have been forced to rethink these fundamental issues. As this debate continues, ADB is engaged in it at many different levels. Whatever may be the ultimate diagnosis, it is important that institutions such as ADB improve their capacity to respond quickly to future shocks and crises. Clearly, people working close to an economy are more likely to recognize and respond to the early signs of a crisis.

Stakeholder involvement, local participation, and ownership of a development strategy and of individual projects are essential to development success. This is often referred to as client orientation: the capacity to respond to the needs of the customer and to tailor the product accordingly. Development strategies and expertise imposed from above or outside often do not provide effective and sustainable outcomes. Participation and close stakeholder interaction is thus being increasingly built into all aspects of development practice. This in turn requires much more extensive field operations, knowledge of local society and culture, and long-term engagement with civil society. It also requires a more proactive effort at information dissemination and external relations to support greater outreach and interaction with DMC stakeholders.

All aid agencies are affected by the increasing scarcity of funds for financing investment, as well as by constrained administrative budgets. Because resources are scarce, duplication of work must be avoided, hence the growing emphasis on aid coordination and a clear division of labor among aid agencies. Opinions differ on the extent and the manner to which this should be carried forward, but there is a consensus that such coordination should be led by the DMC and include all stakeholders, and that much more should be done in the country. To participate effectively in this exercise, ADB must have a strong local presence.

Back ADB's strategic reorientation	Next Practices of other multilateral development banks