Board of Directors
The Board approved the long-term strategic framework 2008-2020 (Strategy 2020) to achieve greater development effectiveness, and began a review of the ordinary capital resources of the Asian Development Bank (ADB) in preparation for seeking a general capital increase.
The Board of Directors is responsible for the direction of the general operations of ADB, including the approval of policies and project loans. As the representative of ADB's shareholders, the Board plays a vital role in overseeing ADB's implementation of the guidance given by its shareholders.
In 2008, the Board approved Strategy 2020, which reaffirmed ADB's overarching mission of poverty reduction, while comprehensively responding to the fundamental changes in the region. Among the steps outlined in the Strategy 2020 to achieve greater development effectiveness are a sharper focus on lending priorities and the adoption of a comprehensive results framework to be applied across ADB.
In light of the requirements of Strategy 2020 and the need to maintain ADB's leading development role in a rapidly changing region, the Board began a review of ADB's ordinary capital resources in preparation for seeking a general capital increase. The directors also endorsed a dynamic new capital adequacy framework that brings ADB into line with the best practices of other multilateral institutions. In addition, the Board approved a reinterpretation of ADB's lending limitations to increase the funds available for lending.
The Board's meetings covered a broad range of policy, financial, and administrative issues, as well as a wide variety of projects and programs. The Board also endorsed new partnership strategies with several developing member countries. The total loan portfolio approved by the Board in 2008 exceeded $10 billion (excluding official cofinancing).
The Board approved comprehensive reforms to the technical assistance program to increase the impact of operations. Further, it approved mainstreaming the innovative multitranche financing facility in response to rising demand from member countries. Revisions to the 1998 graduation policy, including a shift from debt repayment capacity to creditworthiness as one of the criteria for country classification, were also approved.
By pushing ahead with reforms in several key areas, the Board supported improving ADB's institutional effectiveness. It provided input for the comprehensive review of ADB's human resources strategy through a number of seminars and briefings. It was also directly involved in the review of the independence and effectiveness of the Operations Evaluation Department (OED) through an ad hoc working group chaired by an executive director. Subsequently, the directors adopted several measures to strengthen OED's credibility as an independent evaluation unit. The name of the department was changed to the Independent Evaluation Department at the start of 2009. The Board also explored ways to improve the operations of ADB's resident missions.
To continue assisting the poorest and most vulnerable countries in the region, the Board participated in the successful replenishment of the Asian Development Fund (ADF), which was completed in Madrid in May. It also endorsed refinements to the performance-based allocation system for ADF resources.
The Board deliberated on ADB's annual financial statements, its budget and borrowing program for 2009, its work program and budget framework for 2009-2011, and the salaries and benefits of staff. It also reviewed the 3-year rolling work program and budget for 2009 of the Asian Development Bank Institute.
In response to soaring food prices, the Board discussed a paper on how ADB can act quickly in coordination with other development partners to meet the immediate needs of the hardest-hit countries, and subsequently approved emergency assistance totaling more than $200 million.
Country Partnership Strategies
The country partnership strategy maps out the ways that ADB can most effectively work with its developing member countries, given each country's challenges and priorities. It also enables ADB to evaluate a country's development performance over the strategy period.
The Board endorsed five country partnership strategies: the People's Republic of China (2008-2010), Cook Islands (2008-2012), Samoa (2008-2012), Sri Lanka (2009-2011), and Tuvalu (2008-2012). It also endorsed an interim operational strategy (2008-2009) for ADB's newest member, Georgia.
Other Meetings
In October, the Board and management participated in a 1-day retreat covering three topics: recent macroeconomic developments and their impact on ADB, the human resources strategy, and the general capital increase.
Board members also attended the donors' meetings on the ninth replenishment of the ADF (ADF X) held in Manila in March and in Madrid in May, contributing to the successful outcome of the ADF negotiations.
Board Group Visits
Members of the Board made three visits around the region to get a firsthand view of ADB projects and their impacts, and to meet with senior government officials, development partners, private sector leaders, and other stakeholders. On 12-29 February, a team visited Cambodia, Lao People's Democratic Republic, and Viet Nam. Another team visited Bangladesh, Bhutan, and Nepal during 18 June-4 July. On 15-22 September, a third team visited Kiribati. The visits strengthened ADB's relationship with its development partners and generated valuable feedback.
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