Home 
Publications Catalog Online Publications Document
The Long-term Strategic Framework of The Asian Development Bank (2001-2015) : Implementing the Strategy
Operating ModalitiesTo implement the strategic agenda and translate the strategic operating principles into concrete forms of assistance for its DMCs, ADB will have to review operating modalities and procedures. This includes innovations in modalities that will involve doing different things, as well as doing things differently. Cluster Approaches. The development of cluster approaches to designing and operating assistance programs will support the implementation of ADB’s strategic operating principle of taking a long-term approach and thus ensuring selectivity and greater sector focus in each DMC. The cluster approach involves sequencing lending and nonlending assistance to a particular sector in a country to achieve a defined set of long-term goals. The components of the CSP assistance clusters will be defined jointly with each DMC, together with benchmark performance indicators and long-term development goals. Implementation of the cluster approach will require strong government ownership of the programs, and hence will contribute to the maximum efficiency of assistance programs and to the achievement of higher development impact. Sectorwide Approaches. ADB will increasingly pursue sectorwide approaches (SWAPs) to programming assistance, which essentially mean budget support to a sector; such approaches can be undertaken as institutional and policy frameworks improve in a sector and reporting and monitoring mechanisms are put in place. SWAPs entail some uncertainty in the relationship between financing, implementation, and impact, as they involve more fungible forms of financing. Therefore, such approaches require improved and appropriate financial and performance monitoring, in line with ADB’s strategic operating principle of measuring developmental impact. They also entail the development of new financial mechanisms and instruments. SWAPs have important advantages over traditional project approaches: they reduce the large administrative burden of proliferating projects in individual countries, and they are likely to increase development impact. To best contribute to a country’s development efforts, a SWAP requires the participation and coordination of all sources of assistance to the sector. The effective and efficient implementation of a SWAP can also be a measure of the success of a country’s development efforts in that sector. New Partnership Modalities. To support the goal of instituting development partnerships in the interest of the DMCs, ADB will formulate new mechanisms and instruments to work more closely with a wide range of development partners. While cofinancing mechanisms with multilateral and bilateral agencies are relatively well established, modalities for working with NGOs and civil society groups have yet to be developed fully, and will be given priority in the implementation of the strategy. Similarly, ADB will develop mechanisms for direct support for local and regional governments, including cities and municipalities, as well as for community-based organizations. The availability of a grant-based technical assistance modality is a key strength of ADB. To improve its effectiveness, ADB will develop better mechanisms and procedures for working with development partners within the framework of such technical assistance, in particular, for supporting improved governance and capacity building. The procedures and modalities for cooperating more closely with a variety of agencies will be expanded, and ADB will broaden the scope of cooperation beyond traditional cofinancing. In this context, ADB will seek to develop, in partnership with bilateral sources of assistance and private foundations, joint financing mechanisms, such as trust funds, to better target poverty interventions. DMC Ownership of Technical Assistance. The efficiency and impact of the substantial grant-based technical assistance ADB provides to DMCs could be greatly improved by strongly enhancing DMC ownership of these diverse programs, which range from policy support to institution and capacity building. This could be another way to advance ADB’s strategic operating principle of country ownership. ADB will develop procedures to address this issue, including the use of long-term advisory expert positions in the DMCs, and much wider participation of stakeholders in the design and implementation of technical assistance. ADB will also make greater use of regional and national expertise for institutional capacity building. Regional Funding Mechanisms. Regional cooperation is a crosscutting theme of ADB’s strategic agenda. To date, such cooperation has been largely financed out of individual country assistance programs. Regional cooperation involves, indeed is premised on, significant externalities beyond individual country borders, and responds to regional public goods issues. ADB will therefore examine and develop new funding mechanisms for such activities, including the establishment of regional cooperation funding facilities. These will require innovative financial arrangements, because the distribution of benefits and costs and the sharing of responsibility for loan repayment are complex issues. The development and effective operation of such facilities are keys to the institution’s successful support for regional cooperation in the future. New Private Sector Modalities. In keeping with the strategic crosscutting theme of engaging the private sector more comprehensively and effectively, ADB will assist governments in finding new ways of working in partnership with the private sector. This could involve exploring ways and mechanisms to access private sector resources to supplement government investment. Such new procedures and instruments will be developed in line with changes in financial market conditions and instruments.
|
© 2009 Asian Development Bank Privacy | Terms of Use |
 Top of page |
Back