Description

Background

This study assesses ADB's support for promoting good governance in Pacific developing member countries (DMCs) from 2000 to 2010. It is an input to the forthcoming evaluation of the Pacific Approach 2010-2014 and provides lessons and recommendations for the next Pacific strategy. ADB support for governance is included in operations for public sector management (PSM) as well as assistance for other sectors that have governance as a thematic classification. The evaluation covers grants, loans, and technical assistance (TA) projects classified under PSM from 2000 to 2010 and governance-related components of a non-PSM subsector where ADB is most active in the Pacific region. The roads subsector was selected as a case study as it is one of the priority subsectors in the Pacific DMCs and it draws from the Pacific region sector assistance program evaluation on transport.

From 2000 to 2010, ADB approved $158 million for 10 loans and grants, and $42 million for 96 advisory TA projects classified under PSM. In addition, ADB has supported numerous sector specific projects and regional TA with governance and institution building components.

Overall Assessment

ADB's overall rating for its support for governance thematic area is partly successful, just below the threshold for successful. The overall rating reflects relatively high scores on relevance and strategic positioning, and relatively low scores in all other rated areas. ADB's overall strategic positioning is assessed satisfactory, with room for improvement, such as in governance risk assessments. ADB support is assessed relevant, as loans/grants and TA projects were generally aligned with country needs and considered the country contexts.

The study found PSM interventions to be less effective, less efficient, less likely to be sustainable, and partly satisfactory in impact, all of which are the second tier up in a four-tier rating system. Many projects did not achieve important stated outputs and outcomes, thus limiting their overall effectiveness and impacts. Delayed consultant recruitment, weak counterpart support, and changes in project scope were among the many factors contributing to weak effectiveness and efficiency in projects. Many project achievements were not sustained over time and a number of key institutions supported by these projects remain significantly challenged today, leading to low sustainability ratings. ADB's overall contribution to development impact with respect to PSM interventions is assessed partly satisfactory.

Key Findings

Macroeconomic management is a major challenge and sustained growth remains an elusive goal for most Pacific DMCs. Millennium Development Goals progress is mixed, and limited data remains a problem; support for statistics remains critical. While Pacific DMCs have made clear commitments to improving governance, issues of capacity, implementation, and enforcement remain key concerns. Country strategies were helped by diagnostic and joint partner work, but governance risk assessments can expand. Support for strengthening procurement has been given, but more is needed. The evaluation found significant challenges to sustaining target outcomes and outputs in most of the loans and TA projects. There was an increased emphasis in ADB projects on public consultations; this is deemed important for building consensus, which in turn should improve reform commitment and sustainability. State-owned enterprise (SOE) reform support shows possible “learning by doing” on ADB’s part. SOE reform has been a consistent area of support by ADB.

Success in the roads subsector requires sector-specific governance support. The subsector case study found that improving service delivery will need sustained budgetary resources, improved public financial management processes, and better roads design standards, among other important elements.

Lessons

More aid from more providers requires better coordination and capacity. For ADB, a more congested development landscape will necessitate continued partnership building with traditional including possibly nontraditional ADB partners, more effective leveraging of available resources, and a sharper focus on areas where it has clear comparative advantages and a history of success. Follow-on support, less-complexity in policy commitments, and project designs that incorporate local culture and political economy helped effectiveness of projects. The evaluation found that broader and often more ambitious reforms, such as those embedded in many of the past program loans, were less effective.

Recommendations

• Shift emphasis from broad-scope policy lending to longer term sector development programs in support of priority sectors to enable lasting governance outcomes.
• Strengthen external and internal partnerships and collaboration to address national level core governance outcomes.
• Explore and apply nontraditional approaches to enhance transparency and participation in Pacific DMCs to sustain improvements in governance efforts and their impact on development effectiveness.
• Improve capacity of institutions responsible for statistics to facilitate monitoring progress on governance efforts and other development initiatives.

Contents

• Executive Summary
• Introduction
• The Context
• Evaluation Findings and Performance Ratings
• Key Findings, Lessons, and Recommendations
• Appendixes