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ADF VIII Donor's Report: Fighting Poverty in Asia : XI. Issues for Policy Review
B. Performance-Based Allocation System for ADF Resources125. Donors concluded that ADB’s proposals establish a strong linkage between country performance and allocations. Greater differentiation in allocations to ADF recipients should be based upon efforts made in four major areas: pro-poor sustainable economic growth; social development; governance and public sector management; and portfolio performance. In this manner, the performance-based allocation system will be premised on the three pillars of ADB’s Poverty Reduction Strategy, as well as the goal of ADB’s new operational business processes to improve portfolio quality and development effectiveness in the DMCs. Therefore, Donors recommended that ADB prepare a policy paper on performance-based allocation for ADF resources on the basis of ADB proposal endorsed by Donors in the negotiations, as reflected in Appendix 5, and submit it to the Board of Directors for approval before the effectivity of ADF VIII.
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