Catalog

	Table of Contents
p. 19 of 53 BACK | NEXT Executive Summary Summary of Conclusions and Recommendations by ADF Donors ADF VIII: Requests for Midterm Policy Reviews and Reports I. Introduction II. The International Development Goals III. Poverty in Developing Asia IV. ADB and ADF: Vision and Role V. ADB’S Framework for Poverty Reduction VI. Development through Partnership A. Development Effectiveness B. Development Partnership VII. ADF Resources: Portfolio Management and Performance VIII. The Strategy for Implementing ADF VIII IX. Planned Lending in ADF VIII X. Financing Framework for ADF VIII XI. Issues for Policy Review XII. Midterm Review of ADF VIII

ADF VIII Donor's Report: Fighting Poverty in Asia : VI. Development through Partnership

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A. Development Effectiveness

30. Donors expressed concern about the limited effectiveness of existing aid policies and practices. However, Donors also agreed that much has been learned about the development process. After decades of debate there is far more—although by no means complete— agreement about

1. how pro-poor sustainable economic growth is stimulated;

2. why environmental sustainability must be factored in;

3. how mass poverty can be substantially reduced in a reasonable period of time;

4. why it is important for growth as well as targeted poverty eradication to reduce income inequalities; and

5. and how good governance matters not only for human rights but also for improved economic well-being.

Donors also concluded that persistent shortcomings remain in the provision of aid to these ends. Donors pointed to evidence that good policies must be in place in recipient countries if aid is to work effectively to support economic growth. Where those policies exist, aid can contribute strongly to countries’ efforts; where they do not, aid will have little positive effect. Therefore, aid should be allocated more selectively and more on the basis of performance than in the past, with both the level and type of aid tailored to country performance. Furthermore, Donors agreed that activities supported through aid programs must have local ownership in recipient countries. However, the significantly different practices of aid agencies, including multilateral development banks (MDBs), may stretch the DMCs’ capacities to manage their aid. Clearly, the delivery as well as the allocation of aid needs to be improved. Donors strongly endorsed continued harmonization of practices and procedures across development institutions.

31. And finally, Donors pointed to the need for development effectiveness to be demonstrable and sustainable, that is, for aid agencies including ADB to be able to identify, measure, and report in a timely manner on their contributions to reducing poverty. These agencies should set goals and benchmarks and establish processes for systematic monitoring of achievement. The articulation of development goals and benchmarks and regular monitoring of results promotes participation and accountability. To those ends, Donors strongly urged ADB to continue to work with other MDBs to harmonize relevant practices and procedures.

32. Donors concluded that continued mass poverty in the Region does not, by itself, justify further support for ADF. Rather, the case for support also rests on ADB’s commitment that the concessional resources will be made to work more effectively in support of development.

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