ADB’s enhanced project performance management system helps manage projects for greater development results
ADB continued to operate in an economically buoyant region, where aggregate gross domestic product (GDP) grew 8.3% in 2006 (Asian Development Outlook 2007). Steady growth kept the region on track to achieve the Millennium Development Goal of halving the number of people living on less than $1 per day between 1990 and 2015. Growth, however, was not evenly distributed among and within countries, and the Asia and Pacific region remained home to more than 620 million people living on less than $1 per day. The region made much less progress in achieving the non-income Millennium Development Goals such as access to safe drinking water and proper sanitation facilities, and improved health and education. The rapid pace of growth highlighted the pressing need to develop and upgrade the region’s infrastructure and to ensure sustainable management of natural resources.
As part of the efforts to enhance its relevance, responsiveness, and results orientation, ADB continued to sharpen its strategic focus under its ongoing internal reform agenda to make ADB more cooperative, flexible, and efficient. This agenda aims to strengthen operational policies, strategies, and approaches; mainstream managing for development results; refine organizational processes and structures; reinforce knowledge management; and improve human resources management and staff incentives. Five new or revised initiatives identified under the agenda were adopted in 2006: ADB’s second medium-term strategy, the regional cooperation and integration strategy, the revised strategic private sector development framework, enhanced ADB support to middle-income countries and ordinary capital resources (OCR) borrowers, and the second governance and anticorruption plan. Business processes have been refined and new financial instruments introduced.
ADB worked closely with other multilateral development banks and bilateral donors to harmonize strategies, programs, and procedures to improve aid effectiveness regionally. ADB hosted the 2006 Asian Regional Forum on Aid Effectiveness to facilitate the implementation of the Paris Declaration in Asia. ADB played a key role in the Asia 2015 conference held in London in March 2006 to identify future challenges and solutions for the region, and to build new alliances to fight poverty in Asia. More specifically, ADB took joint action with other multilateral development banks to promote better governance and combat corruption, promote clean energy, and reduce vulnerability to the avian influenza pandemic. Together with other development partners, ADB helped establish an International Financial Institutions Anti-Corruption Task Force, which developed a uniform framework for preventing and combating fraud and corruption. Jointly with other multilateral development banks, ADB has helped develop a joint investment framework for clean energy and development, with a progress report discussed at the September meeting of the Development Effectiveness Committee. ADB has taken the lead in energy efficiency in the transport sector under this framework.
The development of the second medium-term strategy, which was finalized after discussion by the Board of Governors at the 2006 Annual Meeting in Hyderabad, India, marked a milestone in taking forward the internal reform agenda. The strategy was prepared to guide ADB’s operations for 3 years, from 2006 to 2008. This is a transitional period during which the long-term strategic framework will be reviewed, and a new long-term strategic direction established to respond to the emerging challenges in the region. As a strategy for this transitional period, the second medium-term strategy combines continuity and change. The main purpose of the strategy is to strengthen the poverty impact of ADB’s assistance programs. Hence, in many respects, the priorities identified in the strategy reflect themes that were already identified in the poverty reduction strategy and the first medium-term strategy. Some of these themes were further elaborated in separate papers.
As a result of rapid development in the region, ADB deals with a diverse set of client countries, from weakly performing countries to low-income Asian Development Fund (ADF) recipients to rapidly growing middle-income countries. Recognizing this diversity, particularly the special needs of weakly performing countries, ADB undertook other initiatives parallel to the second medium-term strategy. These include preparation of ADB’s Approach to Engaging with Weakly Performing Countries: Achieving Development Effectiveness in Weakly Performing Countries. To be presented to the Board of Directors in 2007, this paper is expected to call for greater use of grant assistance and closer partnership. Other initiatives in 2006 included a midterm review of operations under the eighth replenishment of ADF resources (ADF IX) in eligible ADF recipient countries, which was discussed with representatives of ADF donor countries in Frankfurt, Germany, on 4–5 December 2006; and the development of a coherent framework of initiatives for enhancing ADB support to middle-income countries and OCR borrowers.
The second medium-term strategy recommends several adjustments in ADB’s operational model. These include greater sector focus and selectivity; product and process innovations to enhance ADB’s responsiveness, flexibility, and efficiency; and greater emphasis on portfolio performance, development effectiveness, and results. Most of the innovations were introduced in the context of the innovation and efficiency initiative. ADB pays greater attention to the readiness and implementation of current projects and is streamlining managing for development results into the entire project cycle, from development of results-based country partnership strategies to systematic application of results-monitoring frameworks in projects and internal processes at all levels.
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ADB took joint action with other multilateral development banks to promote better governance and combat corruption, promote clean energy, and reduce vulnerability to the avian influenza pandemic
The second medium-term strategy (2006–2008) aims to strengthen the poverty reduction impact of ADB’s assistance programs |
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