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The Long-term Strategic Framework of The Asian Development Bank (2001-2015)

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Preface

ADB has been contributing significantly to the economic and social development of its developing member countries (DMCs) since its founding in 1966. During the past three decades, the Asia and Pacific region has achieved unprecedented economic and social development. Indeed, several DMCs have achieved development levels equal or close to those of the industrial countries, and substantial progress in development has been recorded throughout the region. ADB has played a significant role in these successes. Importantly, it has done so in an efficient and cost effective way. Under its Charter, ADB remains committed to the ideals of its founders “to foster economic growth and cooperation in the region and to contribute to the acceleration of the process of economic development of the developing member countries, collectively and individually.” The Charter mandates ADB to finance development of its DMCs through “regional, subregional and national projects and programs which contribute most effectively to the harmonious economic growth of the region as a whole.” However, to remain an effective institution relevant to the changing needs of the region, ADB has continually been adapting its priorities, assistance modalities, and organizational structure, and has transformed itself from what was essentially a project financier to a full-fledged development institution.

To guide these strategic changes, ADB in 1983 commissioned the Study of the Operational Priorities and Plans of the Asian Development Bank for the 1980s; it reviewed ADB’s operations and resulted in their reorientation for the 1980s. In 1989, a similar report, The Asian Development Bank in the 1990s: Panel Report, defined ADB’s strategic priorities for the 1990s. These strategic documents have served ADB well. They have resulted in important changes in priorities, areas of operations, and assistance. The 1990s strategy, for instance, led to emphasis on expanded assistance for social infrastructure, projects targeted at the poor, and projects designed to improve the environment.

The Asia and Pacific region has continued to change in profound ways since ADB last formulated a long-term strategy a decade ago. The context in which ADB will operate over the next decade will be dramatically different from that of the 1990s. In particular, globalization, led by trade and financial liberalization and accelerating with the rapid spread of information and communications technology, is having a deep impact on Asian economies and societies. Globalization will be changing not only the ways markets work but also the ways governments, the private sector, and civil society work and interact. In recent years, moreover, development thinking has also been changing, with new approaches emphasizing a broader view of development; stronger ownership by stakeholders; wider partnerships among DMC governments, the private sector, civil society, and aid agencies; and renewed emphasis on environmental issues. Most important of all, despite the significant progress in the past three decades, the Asia and Pacific region is still home to two thirds of the world’s poor. Even gains made in poverty reduction through many years of rapid and sustained growth can be reversed quickly, as shown by the 1997 Asian crisis. The challenge of reducing deeply entrenched poverty in the region remains more daunting than ever, and requires new approaches and commitments.

Most important of all, despite the significant progress in the past three decades, the Asia and Pacific region is still home to two thirds of the world’s poor. Even gains made in poverty reduction through many years of rapid and sustained growth can be reversed quickly, as shown by the 1997 Asian crisis. The challenge of reducing deeply entrenched poverty in the region remains more daunting than ever, and requires new approaches and commitments.

Under these circumstances, ADB has been reassessing the major long-term development challenges of the region and the changing needs of its DMCs. ADB’s strategic review of its long-term priorities benefited from the 1997 study, Emerging Asia: Changes and Challenges, a number of other internal studies evaluating its operations, and ADB’s accumulated experience and perceived strengths. In early 1999, poverty reduction was declared the overarching goal of ADB, and ADB’s Board approved the poverty reduction strategy later that year. In early 2000, the private sector development strategy was approved to help promote growth to support poverty reduction efforts. The long-term strategic framework (LTSF) builds on these two strategies, takes into consideration ADB’s other policies such as that on governance and is integrated with the International Development Goals, the series of aims and benchmarks agreed to by world conferences for tackling poverty worldwide by 2015. The LTSF is intended to realize the new vision and mission of ADB, provide all stakeholders with its long-term strategic goals and fundamental operating principles, and to be the key statement to guide its strategic management over the next decade and a half.

The preparation of the LTSF has been undertaken by a team of ADB staff headed by the Director of the Strategy and Policy Department. The preparation was guided by a wide consultation process. During the year 2000, ADB held extensive consultations with its Board of Directors, staff at all levels, borrowing and nonborrowing shareholders, multilateral and bilateral development partners, and representatives of nongovernment organizations and civil society in both borrowing and nonborrowing countries. The LTSF thus represents a broad consensus among ADB stakeholders.

An important feature of the LTSF has been the convening of a Senior External Advisory Panel comprising nine eminent people from within and outside the region (Appendix 1). The panel met three times: twice in Manila and once in New Delhi. The panel provided valuable advice and guidance in the preparation of the LTSF.

Tadao Chino
President

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