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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

I. Environment

87. Donors stressed that there is a strong link between the environment and poverty. Poverty is both a cause and a result of environmental degradation. Poverty shortens the time horizon for both individual and collective decision making, which often results in unsustainable use of natural resources. At the same time, environmental degradation through amongst other things overfishing, deforestation, erosion and excessive cultivation in marginal areas, reinforces poverty by further eroding the livelihood possibilities for the poor. Against this background Donors recommended that in ADF VIII special attention be given to the environment-poverty nexus. In this context, Donors also noted that the need to improve the conditions for women deserves special attention.

88. Donors reaffirmed that ADB started to mainstream environment into its operations in the late 1980s. This approach was enhanced when ADB included environmental protection as one of its five strategic development objectives. Recent lending for projects with environmental objectives has averaged about $800 million annually. Lending volume has increased for projects designed to conserve biodiversity, improve urban air quality, promote cleaner production processes and technologies (including energy efficiency), promote waste management, and implement other urban environmental improvements. Donors also reaffirmed that ADB has actively assisted its DMCs to meet their global commitments, such as under the UN Framework Convention on Climate Change (UNFCCC). Implementation of the Asia Least-Cost Greenhouse Gas Abatement Strategy (ALGAS) was recently completed with the preparation of 81-greenhouse gas abatement project concepts for investment consideration.

89. Donors reaffirmed the importance of the policy on environment that is currently under preparation. The working paper is scheduled for discussion by ADB Board in late 2000. The policy on environment will outline ADB’s approach to environmental issues; set forth the policy and procedures to ensure integration of environmental concerns in lending activities; and define ADB’s role in global environmental actions and strategies, including partnership with the Global Environment Facility (GEF) for subregional and national actions, and for achieving global environmental benefits. The principal aim for preparing the policy is to realign ADB’s approach to achieve greater synergy with poverty reduction. The policy will identify themes in pollution abatement and natural resource conservation where, through its loan operations, ADB could strongly impact poverty and social development issues. The policy also will identify means of mainstreaming the implementation of environmental aspects in ADB’s loan operations in respect of their environmental aspects; identify themes for environmental policy dialogue; and strengthen ADB’s environmental assessment procedures, in particular institutionalizing the conduct of strategic environmental assessment and strengthening the implementation of environmental protection measures during project implementation.

90. Donors reaffirmed the importance of the planned revision of ADB environmental assessment guidelines in 2000. While ADB has an established track record in applying environmental impact assessment at the project level, broader issues should be addressed more effectively. Such issues include strategic environmental assessment; cumulative environmental assessment; and the impacts of other development policies. The guidelines will help to better address these issues and project-level environment impact assessment. ADB also will develop guidelines for environmental monitoring and review during project implementation, test the guidelines, and institutionalize them by early 2001 through training programs for relevant staff at headquarters and resident missions.

91. Donors concluded that the implementation of ADB’s poverty reduction strategy, along with a new environment policy and revised guidelines for environmental assessment, as well as a performance-based allocation system including environmental criteria, provides an opportunity for improving mainstreaming of environment in all ADB operations. In this context, Donors recommended that ADB integrate environmental concerns and expertise at each stage of the Poverty Reduction Strategy country-level process leading to the Partnership Agreement between ADB and the DMC. Similarly, Donors recommended that ADB continue with the integration of environmental expertise in the country programming cycle to ensure that the CSP fully incorporates environmental concerns--both to avoid programs and projects entering the pipeline which are unacceptable from an environmental perspective, and to strengthen environmental assistance across sectors. Donors recommended that the environment policy and revisions to the environmental assessment guidelines be finalized in a timely manner so that they may apply during the ADF VIII period.



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H. Gender and Development
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J. Cooperation Among DMCs

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