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Annual Report 2004 : Part 1: Institutional Effectiveness

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Managing for Development Results

During the last 5 years, the development community has shifted its emphasis toward achieving the Millennium Development Goals (MDGs). A series of multilateral forums have helped focus this agenda. Key events included the International Conference on Financing for Development (Monterrey, 2002), the High-Level Forum on Harmonization (Rome, 2003), and the Second International Roundtable on MfDR (Marrakech, 2004).

In Marrakech, the heads of MDBs and the chairman of the Organisation for Economic Co-operation and Development's–Development Assistance Committee (OECD-DAC) affirmed their commitment to fostering a global partnership on MfDR. They pledged to implement this commitment by aligning cooperation programs with desired results and strengthening country monitoring and evaluation systems to track progress and assess outcomes. The commitments made by development partners in these important forums have improved alignment of development assistance with developing countries' strategies, supported harmonization of donor policies and procedures, and clarified best practices in delivering development assistance.

During the Asian Development Fund (ADF) IX negotiations (2003–2004), ADB committed itself to an MfDR framework consisting of three pillars: MfDR at the country level, MfDR at the institutional level, and MfDR in the context of global partnership. The ultimate goal of MfDR is to ensure the continued relevance and effectiveness of ADB as a development institution committed to reducing poverty in Asia and the Pacific.

MfDR at the Country Level

Country ownership and capacity to manage for results are of primary importance for the success of the ADB MfDR agenda. At the country level, ADB's efforts have focused primarily on capacity development and introduction of new tools and processes to better define, measure, and monitor results “on the ground."

• An important dimension relating to the capacity of developing member countries (DMCs) is the development of their own MfDR agenda. Awareness raising and “demonstration of success" through focused technical assistance have been the preferred approaches to MfDR capacity development. Two regional technical assistance projects introduced MfDR techniques into sector agencies in specific DMCs. ADB also provided technical assistance to help build domestic statistical capacity for data collection, reporting, and monitoring of development results.
• MfDR is an important new area for active collaboration among various ADB departments and the ADB Institute. A development management course for DMC executives was designed in this framework. ADB also collaborated with the Asian Institute of Management on a seminar series on results-based management.
• A cooperation fund in support of MfDR, with contributions from the governments of Canada and the Netherlands, was established in July 2004 to support pilot DMC initiatives aimed at promoting the adoption of results-based approaches and techniques in public sector management.

MfDR at the Institutional Level

The institutional pillar encompasses a variety of internal efforts to streamline and enhance the results orientation of ADB's management systems and business processes.

• Some major initiatives undertaken as part of ADB's reform agenda reflect its increased results orientation, including the new HR strategy and the staff performance development plan, the knowledge management framework, and institutional reporting mechanisms under the enhanced PRS.
• A critical short-term priority is to enhance the results orientation of ADB's budgeting and planning instruments and processes. The preparation of ADB’s next medium-term strategy will provide an opportunity to advance in this area.
• As an initial and important step of MfDR implementation, ADB created the Results Management Unit (SPRU) within the Strategy and Policy Department to effectively lead the effort to introduce improved systems, procedures, and techniques for better measuring, monitoring, and managing for development results in ADB and among DMCs.
• ADB is preparing results-oriented country strategies and programs (CSPs) in selected pilot countries. The increased results orientation of CSPs encompasses mechanisms to ensure (i) alignment with DMC priorities and systems, (ii) prioritization and selectivity of ADB interventions, and (iii) measurement of ADB’s contribution to relevant country outcomes. Notably, ADB's first results-based CSP pilot in Nepal was endorsed in 2004 by the Board of Directors. Further pilots are being prepared or planned for Bangladesh, Fiji Islands, Indonesia, Philippines, and Viet Nam. ADB is also preparing results-based regional cooperation strategies and programs.
• An enhanced project performance management system developed in 2004 emphasizes more systematic use of logical frameworks and provides a results-oriented approach to project management. It includes specific measures to improve the design and the use of logical frameworks as a basis for both quality at entry assessment during project preparation and results management and performance assessment during project implementation.
• SPRU conducted extended consultations with development partners on various aspects of ADB's MfDR agenda, with an emphasis on achieving country-level results. SPRU also worked with other units throughout ADB to increase results orientation in its corporate strategies and policies, strengthen knowledge management, and establish support mechanisms for a learning culture.
• The Results Matter newsletter and the MfDR websites were established as vehicles to facilitate knowledge acquisition and sharing among ADB staff and to promote the MfDR agenda internally.

Participation in Global Partnership

At the global level, ADB supports the participation of its DMCs in international events on MfDR and participates in international alliances and partnerships on MfDR to acquire, adapt, and disseminate knowledge on results and development effectiveness for the benefit of its DMCs.

• ADB cosponsored the Second International Roundtable on Managing for Development Results in Marrakech in February, leading to the endorsement of the MfDR Core Principles and Action Plan.
• ADB was also heavily involved in the preparations for the Second High-Level Forum on Harmonization, Alignment, and Results (to be convened in 2005). In this context, ADB organized and cosponsored the two preparatory regional workshops in Bangkok (cosponsored with the Government of Japan) and Bishkek (cosponsored with the European Bank for Reconstruction and Development and the United Kingdom’s Department for International Development). The workshops stimulated discussion and the sharing of best practices among DMCs on harmonization, alignment, and MfDR.
• ADB holds the inaugural chair of the MDB Working Group on MfDR and also cochairs the OECD-DAC Joint Venture on MfDR.
• ADB actively promotes the harmonization of operational policies and procedures among its development partners and the coordination of support to its DMCs to help them manage for development results.

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