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p. 19 of 25 BACK | NEXT Introduction Background The need for change Practices of other multilateral development banks Policy framework Strategic reorientation and resident mission objectives Resident mission functions Scope and responsibility for functions Location of work: special cases Organizational and resource issues Recommendation

Resident Mission Policy : Policy framework

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Location of work: special cases

The proposed approach to RM functions will apply to all DMCs. However, the size and special problems of some DMCs may require that their RMs be structured differently.

Pacific operations

ADB’s Pacific operations are unique, involving 12 mostly small DMCs, scattered over a wide geographic area, with poor communications. ADB is the lead development agency in these DMCs and is heavily involved in all aspects of development, especially macroeconomic management, structural reform, and governance. At the same time, because of their very small size and limited absorptive capacity, loan and TA operations are small, with a strong focus on TA. Portfolio management is therefore different than in other DMCs. Several different models of managing ADB’s work in the Pacific have already been tested and found wanting, and useful lessons have been learned.

The reasons for a strong local presence apply to Pacific DMCs as much as to other DMCs. At the same time, size cannot be ignored. Establishing an RM in each Pacific DMC may not be appropriate for efficiency and effectiveness reasons. Establishing one single regional office was attempted earlier, with mixed results. There are two constraints on such an office: logistical and functional. Logistically, there is no single location that is equally close to all the Pacific DMCs. Functionally, a regional office without considerable delegated authority has no advantage over headquarters-based operations. Thus, it is proposed that the needs of the Pacific region may best be served by adopting a subregional approach. A subregion will include several DMCs, based upon geographic and logistical contiguity. An RM will be established for each subregion and will cover all DMCs included in it. Functions and staffing will be decided keeping this special structure in view.

Small developing member countries

ADB also has a number of small DMCs outside the Pacific where it should have a local presence. However, geographic, logistic, and efficiency considerations may not support an RM. Their needs could be met by nearby RMs if this is acceptable to the DMCs concerned. Such RMs would be known as multicountry missions, and their functions and staffing structure would be designed to meet these requirements. DMCs that are not agreeable to such an RM will continue to be served from headquarters.

Satellite and extended missions

In addition to these types of RMs, adopting a flexible approach to a local presence will enable ADB to provide more specific responses to country needs. Two such responses are satellite missions and extended missions. Satellite missions within the country would be located away from the capital, and would report to the RM. These may be useful in countries such as the People’s Republic of China, India, or Indonesia depending on the size of the portfolio and country circumstances (such as state-level operations in India). Extended missions of headquarters staff, such as those currently in Indonesia, Papua New Guinea, and Thailand, were intended to meet specific operational needs in the short term. The need for such extended missions will be reduced, if not eliminated, by the principle of having an RM in each borrowing DMC. However, the concept of extended missions to provide specific expertise remains valid, and qualified staff could continue to be posted to RMs for an extended period, rather than permanently, to undertake specific assignments.

Other missions

Two other types of mission have been suggested: (i) missions with operational authority to supervise RMs in an entire subregion, other than the Pacific (for example South Asia or the Central Asian republics), and (ii) regional/subregional cooperation missions to monitor and be responsible for ADB’s involvement in regional cooperation initiatives. For the reasons given on page 29 for Pacific operations, a supervisory mission does not appear to be a useful option.

In principle, missions to exclusively undertake regional cooperation work are possible, although the current arrangement whereby headquarters divisions have responsibility for this activity is working reasonably well. If such a regional cooperation mission is established, it needs to be considered whether a physically separate mission is required, or whether staff working full time on regional cooperation but located in an appropriate country RM can serve the purpose. Having two separate offices in one DMC could lead to confusion among DMC clients, in addition to higher operating costs.

A related suggestion is to locate specialist staff in one RM, but with the mandate to cover several DMCs from that location. This would overcome the problem of underemployment of sector specialists assigned to only one RM, but it is not clear that this arrangement would be logistically any more efficient than basing the same staff at headquarters. This will be studied further.

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