Independent Evaluation

Evaluation Presentations

Full Evaluation Report

ADB opened its first resident mission in Bangladesh in 1982. It now operates a network of 23 resident missions and several other types of smaller field offices, covering over 80% of its developing member countries.

ADB's Resident Mission Policy of 2000, framed in the context of its Poverty Reduction Strategy of 1999, aims to provide the primary interface between ADB and the host countries and maximize the efficiency, effectiveness, and impact of ADB's operations there.

In 2007, the Operations Evaluation Department of ADB examined if ADB's Resident Mission Policy has delivered on its promise. It also examined the relevance of the policy and its future sustainability in light of the changing environment in developing member countries, development assistance delivery, and ADB's evolving corporate strategies.

Overall, the policy and its related operations were rated "successful". The policy was rated as "highly relevant" in terms of value added at the time that it was formulated. It was also found flexible enough to be able to accommodate the emerging needs of ADB and its developing member countries.

Resident mission operations were found compliant with the policy and "effective" and "efficient" in the delivery of services to both internal and external clients. More decentralization and a larger deployment of resources to resident missions would likely result in higher effectiveness and efficiency ratings. The policy was deemed "highly sustainable" in the current context, with the potential to continue remaining so.

Moving forward, ADB should consider undertaking the preparation of a corporate decentralization strategy. This would help ADB respond to challenges arising from continued rapid economic progress in Asia and the Pacific.

The objectives of the corporate decentralization strategy would be to (i) strengthen existing resident missions to improve operational effectiveness and efficiency, (ii) integrate the resident mission network more closely with headquarters' information technology and knowledge work, and (iii) enhance developing member country coverage.

Organizational decentralization is a major challenge that has to be carefully assessed, planned, and managed, since it will have significant implications on ADB's business practices and may have major resource implications.

The study recommended that ADB prepare a decentralization strategy in light of the evolving challenges and opportunities and in line with ADB's future strategic directions. The strategy should be informed by a detailed feasibility study (covering, among other things, financial and human resources implications and impacts on business processes).