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p. 2 of 7 BACK | NEXT I. Introduction II. Reasons for Updating III. Process and Guiding Principles Adopted for Updating IV. Updated Sector and Theme Classification V. Implementation Arrangements VI. Next Steps Appendixes

Updating Sector and Theme Classification at the Asian Development Bank

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II. Reasons for Updating

2. ADB remains committed to maximizing its development effectiveness in achieving poverty reduction and attaining the millennium development goals (MDGs) in the Asia and Pacific region. ADB needs to closely monitor its operational alignment and effectiveness in delivering those institutional commitments by systematically and accurately coding and tracking its operational activities. Sector and thematic classification is an important tool for tracking (i) allocation of operational resources, and (ii) intended purposes and impacts of the operations.

3. However, ADB’s sector and thematic lists were outdated and did not permit accurate capturing of the recent operational trends. The sector list was first introduced in 1984. Over the past two decades, the development contexts in the region and the corresponding coverage of ADB operations have evolved considerably (paras. 10 and 11). The thematic list was introduced in 1992 when ADB first adopted the “strategic development objectives.” While the thematic list was slightly modified as ADB updated its strategic directions, it was not fully aligned with the most recent strategic priorities as pronounced in the poverty reduction strategy (PRS) and the long-term strategic framework (LTSF) adopted in 1999 and 2000, respectively.

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