Major efforts have been made by ADB to review and revise the most critical of its operational policies and strategies. Major policies and strategies have been revised and updated. Now, these revised policies and strategies are under implementation; a process which is being closely monitored and assessed.
| Reform Initiative |
Objectives and Scope |
Current Status |
| Improved Operational Policies, Strategies, and Approaches |
| 1. Review, prepare, and implement a medium-term strategy |
|
To assess the progress made during the period 2001-2005 in the implementation of MTS I and to help lay the foundation for the preparation of MTS II. |
Completed. The review of MTS I was completed in February 2006. |
|
To translate the broad directions of the long-term strategic framework (2001-2015) for shorter time periods, and to adjust operational priorities in response to evolving conditions in each period.
MTS II has five strategic priorities:
- catalyzing investment,
- strengthening inclusiveness,
- Promoting regional cooperation and integration
- managing the environment
- improving governance and containing corruption
|
Completed. MTS II was adopted in March 2006. |
|
|
Completed. MTS II has been superseded by the adoption in April 2008 of Strategy 2020. |
| 2. Prepare ADB's strategy for regional cooperation and integration |
|
To support ADB's overarching goal of poverty reduction through regional collective actions that lead to greater physical connectivity; expansion of trade and investment; development of financial systems and macroeconomic and financial stability; and better environmental, health, and social conditions.
The strategy aims to build and deepen integration in four interrelated pillars:
- regional and subregional economic cooperation programs on cross-border infrastructure and related software
- trade and investment cooperation and integration
- monetary and financial cooperation and integration
- regional public goods
|
Completed. The strategy was adopted in July 2006. |
|
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Being implemented. Implementation is expected to be completed by 2010. |
| 3. Prepare a revised framework for private sector development and implement a new action plan |
- Review implementation of the strategy
|
To review ADB's private sector strategy (2000) and recommend ways to promote private sector-led growth in the developing member countries (DMCs), help solve problems that impede private sector growth, and increase the contribution of the private sector to poverty reduction. |
Completed. The review was completed in August 2005. |
- Prepare a revised framework
|
To prepare a revised framework based on the review of ADB's private sector strategy (2000).
The revised framework adopted aims to
- create an enabling environment intervention and a level playing field for instruments
- mobilize finance for private sector development
- develop new ways of financing goods and services
|
Completed. The revised framework was adopted in February 2006. |
- Implement the action plan
|
|
Being implemented. Implementation is expected to be completed by 2008. |
| 4. Review and recommend ways to enhance ADB support to middle-income countries and ordinary capital resources (OCR) borrowers |
- Review the approaches and prepare a framework and action plan
|
To reexamine the effectiveness of ADB's operations in these countries and propose new approaches relevant to operations contexts and responsive to clients' needs.
The paper "Enhancing ADB Support to Middle-Income Countries and Borrowers from Ordinary Capital Resources" provides a coherent framework for the various measures either being undertaken or planned to enhance ADB's support to OCR borrowers.
These measures are grouped into three broad areas:
- reducing costs of doing business with ADB
- expanding and enhancing ADB's operational instruments
- enhancing quality of ADB's services
|
Completed. The paper was finalized and discussed by the Board in August 2006. |
- Implement the action plan
|
|
Being implemented. The initiative is a long-term activity and being pursued under the Innovation and Efficiency Initiative on an on-going basis. |
| 5. Review the implementation of ADB's governance and anticorruption policies |
- Review the implementation of the policies and prepare a revised framework and action plan
|
To review the implementation of ADB's governance (1995) and anticorruption (1998) policies, and first action plan adopted in 2000; and prepare a new plan.
The Second Governance and Anticorruption Action Plan (GACAP II) focuses on four key areas:
- improving the assessment of the risks that poor governance, weak institutions and corruption represent for a country's social and economic development
- ensuring that risks are taken into account when projects are designed
- improving the work that is done with executing agencies to minimize the risks when projects are implemented
- upgrading ADB's ability to deal with governance issues by improving the skills of its staff and adopting better operational practices
|
Completed. GACAP II was adopted in July 2006. |
- Implement the action plan
|
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Being implemented. Start-up phase is expected to be completed by 2007 while institutionalization phase by 2010. |
| 6. Review of approaches to strengthen DMCs’ capacity development |
- Review the approaches and prepare a framework and action plan
|
To develop an operational medium-term framework and budgeted action plan for enhancing client-orientation, effectiveness, efficiency, and sustainability of ADB-supported capacity development interventions, including proposals for updating related business processes.
The paper "Integrating Capacity Development into Country Programs and Operations Medium-Term Framework and Action Plan" aims to strengthen ADB's assistance for capacity development in DMCs.
The action plan aims at two key outcomes:
- institutionalizing capacity development focus in country programs and operations
- establishing internal support systems for capacity development
|
Completed. The new approach was adopted in January 2007. |
- Implement the action plan
|
|
Being implemented. Implementation is expected to be completed by 2008. |
| 7. Review of ADB's Graduation Policy |
- Review the policy and prepare a revised framework and action
|
To review ADB's 1998 Graduation Policy with respect to
- Asian Development Fund (ADF) eligibility criteria, country classification framework, and framework for graduation from OCR
- country classification review process and procedure
|
Completed. The review of the policy was completed. The revised policy was adopted in April 2008. |
- Implement the action plan
|
|
Being implemented. |
| 8. Strengthen the Performance-Based Allocation Policy |
To enhance the policy governing allocation of resources under ADF.
The revised Performance-Based Allocation (PBA) Policy seeks to:
- improve country performance assessments
- elevate the role of governance
- strengthen the link between performance and allocations
- sharpen ADF's focus on small countries
- clarify criteria for extra-formula allocations
- deepen client involvement
- improve transparency and accountability
- reduce costs
|
Completed. The revision of the PBA policy was completed in December 2004. All the changes recommended in the revised policy have been implemented. |
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