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p. 3 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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III. Process and Guiding Principles Adopted for Updating

4. An interdepartmental working group,¹ appointed by department heads (September 2002), conducted the updating exercise. This arrangement was chosen to ensure that the updating exercise consider and address multidimensional perspectives: operational, administrative, information system, and management requirements. The working group generated options, coordinated the intra- and interdepartmental review of emerging options, and fed back these departmental inputs to the updating process; the members also regularly consulted with the sector and thematic committees. The exercise also involved consultations with the World Bank and the Inter-American Development Bank (October 2002) to achieve consistency and comparability of the thematic and sector information at ADB with the terms and definitions used in the wider international community.

5. The updating exercise was guided by a set of principles identified through the internal consultation process: (i) the updated sector/thematic classification system must be simple and easy to apply; (ii) implementation must have minimum human and budgetary resource implications; and (iii) the classification data will be entered into and processed by the status quo information technology system; but when ADB adopts a new information management system, the data will be transferred to it.

6. The first set of the updated list, definitions, and implementation arrangements were submitted to the Management in December 2002, and were endorsed for pilot testing. During March–November 2003, operational and knowledge departments applied, on a pilot basis, the updated sector and theme classification to the projects listed in the 2004–2006 operational program. During pilot testing, the working group regularly consolidated and examined lessons and recommendations, and applied those in refining the sector/theme lists, definitions, and implementation arrangements, in close consultation with the relevant departments, and sector and thematic committees. The final proposal was submitted to the Management (December 2003) and was endorsed for full application starting in 2004.

7. During January–April 2004, the working group (i) distributed to the staff a package of an explanatory note, updated sector/theme lists, and their definitions; and (ii) conducted a series of orientation sessions for operational, knowledge, and administrative departments, and resident missions.

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