Evaluation Lessons of a Global Financial Crisis for Asia and ADB

Date: July 2012
Type: Papers and Briefs
Subject:
Show 4 tags
ADB administration and governance; Economics; Evaluation; Finance
Series: Learning Lessons

Description

As Asia and the Pacific recovers from the 2008–2009 global financial crisis, the distress engulfing European economies is stoking fears of a new storm battering the region’s exports and restricting financial resource flows. Concerned about a crisis governments in Asia are preparing their defenses and might seek financial support and policy advice from ADB. This brief discusses the potential risks to Asia from a crisis in Europe, and lessons from evaluation on crisis response support provided by ADB and other international financial institutions.

Evaluations of the responses to the 2008–2009 global financial crisis by ADB and other international financial institutions provide valuable lessons. For crisis response, evaluation-based lessons place the greatest stress on preparation by developing countries, ADB, and the Independent Evaluation Department (IED).

  • For ADB’s developing member countries, the priorities are ensuring (i) fiscal sustainability through aggressive public expenditure management; (ii) robust systems for social protection, and targeting social protection on vulnerable households; and (iii) sufficient capital adequacy in the financial system to counter shock-related stress.
  • For ADB, the priorities are for investing in (i) forecasting systems to better anticipate the risks of external shocks and identify needed actions; (ii) knowledge, resources, and instruments to support country priorities; and (iii) relationships with clients and partners to strengthen and speed up ADB support.
  • For IED, the priority is to pursue operational learning through timely evaluations of ADB support, and quickly getting the lessons out to countries and ADB staff. This may require a strategic rebalancing of IED’s work program, especially with respect to the mix between project evaluations and the more thematic evaluations.

Evaluation Lessons of a Global Financial Crisis for Asia and ADB by Independent Evaluation at Asian Development Bank