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ADF X Donors' Meeting

Opening Remarks by
Haruhiko Kuroda
President
Asian Development Bank

13 March 2008
ADB Headquarters, Mandaluyong City, Philippines

Ladies and gentlemen,

Let me extend to you a very warm welcome. I am very pleased that we are meeting in Manila for the third meeting of the ADF X negotiations. You will have many opportunities to see ADB at work.

We are all aware that dire poverty persists in the region despite its dynamism. We also know that the current pace of growth is not enough for ADF countries to eliminate poverty even by 2020. They cannot accelerate growth or poverty reduction on their own. Moreover, they will not achieve the non-income Millennium Development Goals (MDGs) by 2015 unless the flow of ODA to Asia and the Pacific is increased.

ADB's past performance and comparative strengths prove its effectiveness in delivering ODA, and demonstrate the specific role of ADF in the international aid architecture. The role and priorities of ADF are also fully consistent with ADB's new Long-Term Strategic Framework that is now being finalized.

In a few months from now ADF IX will have been fully utilized. We will not be able to continue our normal operations unless we quickly and successfully conclude ADF X negotiations. With the urgency of the task in mind, we have prepared numerous papers in response to the issues you have raised during the ADF IX Midterm Review in Frankfurt in December 2006, in Sydney last September, in Vientiane in November, and again now in Manila.

In this meeting, we will be presenting to you two scenarios for the ADF X replenishment: the demand-base case of SDR7.4 billion, and a lower replenishment case of SDR7.0 billion. Our objective is to obtain your feedback so that we can move forward with our negotiations.

Many of you emphasized ADB's institutional effectiveness. I greatly appreciate your recognition of the tangible changes we have made. While much has been accomplished in ADB's reform agenda, we realize that we still have much to do. I would like to assure you that we will continue along this path by consolidating and fully implementing our reforms.

Results are really the only thing that matters. In this, our improved results framework is critical. It lies at the very heart of the Managing for Development Results approach, and is aligned with the LTSF priorities. While it incorporates best practices, it is still work-in-progress, and I am looking forward to our discussion during the next session.

Let me turn specifically to two issues which have been raised on a number of occasions: human resource management, and independence of the Operations Evaluation Department (OED).

I believe, as you do, that management of human resources is key in an organization like ADB which is primarily dependent on the quality, motivation and performance of its staff for effectively delivering development assistance. You will recall that I announced specific decisions at the Vientiane meeting on which we have already begun to act.

1. We have already initiated flexible recruitment on a limited scale, and are developing guidelines for fixed-term recruitment, which will be completed after finalization of LTSF.



2. As part of the improved process for senior staff appointment, we have started advertising our senior staff positions-DG, PSOD; Auditor General; and DG, ERO-simultaneously externally and internally.



3. We have now completed the staff engagement survey. About 82% of staff participated, almost double the 42% response rate of the last staff engagement survey in 2003. We will share the preliminary results of the survey with the Board at an informal seminar in April.



4. The survey will provide a good basis for the comprehensive review of the human resource strategy, which we will conduct with the assistance of external experts. The draft terms of reference for this review will take into account the findings of the staff engagement survey and the views expressed in the Informal Board Seminar on the staff engagement survey. The review itself will be initiated in the second quarter of this year. The draft terms of reference will be shared with the Board before the Annual Meeting in Madrid.

With respect to OED, I value its independence highly. As I have informed the Board, we will conduct a comprehensive review of OED in the second half of this year, after consulting the Board in defining the scope and terms of reference. The draft terms of reference will be shared with the Board before the Annual Meeting in Madrid.

We have all worked hard to come this far in these negotiations. Let us thoroughly discuss all outstanding issues over the next two days, so that we can bring the negotiations to a successful conclusion when we meet next in Madrid before the Annual Meeting.

Thank you, and I look forward to our deliberations.