Managing for Development Results at ADB

Results Matter April 2008

Managing for Development Results in Lao People’s Democratic Republic (Lao PDR)
By Gil-Hong Kim, Country Director, Lao PDR Resident Mission

Lao PDR Country Director Gil-Hong Kim, Vice Minister of Finance Mme. Viengthong Siphandon sign two technical assistance agreements for the country.

The Lao PDR country assistance program evaluation recommends that (i) the sector focus of ADB assistance be sharpened; (ii) stronger partnerships be forged around programs of sector support with other assistance providers; (iii) reform readiness be clearly demonstrated, sequenced over time, with more realistic measures for program lending; (iv) good governance and private sector development be carefully integrated into sector development programs; and (v) technical assistance support be linked more closely to lending.

Results-Based Country Strategy
In response to the CAPE recommendations, ADB’s 2007–2011 Country Strategy and Program (CSP) emphasizes three pillars: (i) promoting pro-poor sustainable growth by nurturing labor-intensive sources of growth (including support to the development of small and medium-sized enterprises, transition to commercial agriculture, and regional integration as the main engine of outward-oriented growth), (ii) fostering inclusive social development by investing in selected non-income MDGs (including basic education, primary health care, and water supply), and (iii) addressing priority governance issues by strengthening financial management capacities (including support to the Nam Theun 2 Hydroelectric Project through the Public Expenditure Management Strengthening Program). As a result, the CSP has greater focus, selectivity, and synergy between national and regional programs. It includes a strategic results framework serving as a management tool for managing ADB assistance to deliver the intended development results. ADB’s CSP is aligned with the Government’s Sixth Five-Year Socio-Economic Development Plan 2006–2010 (SEPD6), which fully streamlined the National Growth and Poverty Reduction Strategy. SEDP6 preparations included extensive consultations with local authorities, development partners, academia, civil society, and the private sector. The Committee for Planning and Investment oversees the implementation of SEDP6, and since November 2006, the Government has been taking the lead in eight sector working groups, which were previously informally chaired by donors. The committee’s general planning department is responsible for the monitoring and evaluation of SEDP6 using a results-based monitoring and evaluation framework.

Use of Country Systems
The CSP contemplates greater use of country systems. ADB’s TA program aims at strengthening capacities for fiscal planning, budget preparation, debt management, internal audit, treasury, and accounting systems. ADB will assist the Government to improve consistency between macro and fiscal forecasts; enhance the coverage and quality of its debt management databases and systems; institutionalize the use of a medium-term expenditure framework at both central and local governments; build automated accounting, revenue, and recurrent expenditure tracking systems; develop timely and consistent budgeting and reporting procedures; and strengthen internal auditing capabilities.

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