Catalog

	Table of Contents
p. 26 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 VII. ADF Resources: Portfolio Management and Performance VIII. The Strategy for Implementing ADF VIII A. General Strategy and Partnership B. Implementing ADB’s Poverty Reduction Strategy C. Performance-Based Allocation System for ADF Resources D. Governance Action Plan E. Development of the Private Sector F. Infectious Diseases including HIV/AIDS G. Core Labor Standards H. Gender and Development I. Environment J. Cooperation Among DMCs K. Money Laundering L. Drug Trafficking M. Improving Evaluation and the Linkage to Planning Operations N. Redesign of Operational Business Processes and Portfolio Management O. Strengthening Resident Missions P. Strengthening ADB’s Institutional Capacity 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 : VIII. The Strategy for Implementing ADF VIII

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B. Implementing ADB’s Poverty Reduction Strategy

54. Donors reaffirmed their strong support for ADB’s Poverty Reduction Strategy and called for its vigorous implementation in ADF VIII. Donors noted that an information paper “Annual Action Plan 2000: Implementing the Poverty Reduction Strategy” was provided to the Board of Directors in April 2000. That paper was in response to the commitment made in the Poverty Reduction Strategy to produce annual action plans of the strategy. Donors endorsed two key actions: recruitment of staff specialized in poverty reduction, and expansion of ADB’s statistical databases.

55. Donors noted that twenty-one new staff positions have been provided to nine departments, specifically for purposes of poverty reduction. Of these, 15 are in the projects and programs departments and Office of Pacific Operations (OPO). Recruitment for these positions is under way. Training modules for staff are being pilot-tested. Training will be arranged for about 100 staff. The reform of ADB’s business processes, which will start in 2000, will take into account the need to make operational procedures more responsive to the requirements of poverty reduction. Feedback from the operational departments and support offices will be used to ensure that changes in business processes facilitate the design and implementation of poverty interventions.

56. Donors noted that the ADB’s poverty reduction analysis process is critical, and urged ADB to prepare relevant Departmental action plans as well as review sectoral policies to ensure adequate and appropriate analyses in DMCs. This should include, among others, CSP and project design processes that would include a focus on domestic fiscal allocations to reduce poverty, and clearly defining planned poverty reduction impacts. In support of analytical activities, ADB’s Economics and Development Resource Center is building a poverty database. Methodological work started in 2000 includes developing indicators for measuring performance at the country level. The indicators will be included in partnership agreements, and used for poverty assessments to prepare projects. Guidelines for Economic Analysis of Development Projects will be updated, in particular the sections on distribution analysis and poverty impact ratio. In addition, work will start on developing methods for aggregating project results and identifying their linkage to country-level performance indicators, and for helping to make choices on projects to be included in country portfolios. Identifying the linkage to country-level performance indicators will involve developing tools that help set priorities and establish an appropriate sequence of assistance, aiming at optimum antipoverty impacts. This work will be complemented by the International Institute for Sustainable Development Study to build aggregate indicators useful to decision-makers. All of these methodological efforts are designed to support the central goal of sharpening the poverty reduction focus of ADB’s operations. Donors recommended that ADB ensure that this work be implemented taking into account existing databases and other technical assistance being provided by other development partners in individual DMCs.

57. Donors agreed that the Poverty Reduction Strategy will incorporate a country-level process involving government-owned poverty analysis, donor coordination, COS and partnership agreements. Donors expect that high-level forums will take place in various DMCs, including ADF borrowers. DMC governments will be expected to sign partnership agreements with ADB. Appendix 4 provides an indicative implementation schedule of related activities. Donors recommended that ADB follow this timetable in close cooperation with other development partners. Detailed advisory notes have been developed to guide staff on the standards and requirements of the poverty analyses, high level forums, and partnership agreements. A revised project classification system is being introduced, in line with the indications contained in the Poverty Reduction Strategy. The revised system will apply from 2001 onwards. Donors recommended that the implementation of the Poverty Reduction Strategy’s country-level process be based on CDF principles and pro-actively support the formulation and implementation of the DMC’s national comprehensive poverty reduction strategy. In this context, Donors recommended that ADB’s Partnership Agreements and country strategies should be based on national poverty reduction strategies prepared through a collaborative process led by the Government and involving all relevant stakeholders including NGOs, academics, other multilateral and experienced bilateral donors, and be consistent with PRSP processes in DMCs. Donors requested a report to be provided at the ADF VIII Mid-term review on progress on implementation of ADB’s poverty reduction strategy in ADF borrowers.

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