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Executive Summary
I. The Context
II. Present Bank Policies and Practices
III. Graduation Policies of Other Multilateral Development Banks
>>IV. Rationalizing the Bank's Classification and Graduation System
A. Graduation From ADF
B. Graduation From Bank Assistance
V. Other Operational Implications
VI.Conclusions
VII. Recommendation
A Graduation Policy for the Bank's DMC's

IV. Rationalizing The Bank's Classification and Graduation System

  1. The discussions in Sections II and III provide the background against which an approach can be developed for rationalizing the system for determining eligibility for and graduation from concessional and nonconcessional regular Bank assistance. The proposed approach is not to attempt to create an entirely new structure but rather to redesign the existing policy framework to provide a platform for the graduation process. The document ADF VII: Report of Donors24 envisages graduation from (i) ADF-only to ADF-OCR blend, (ii) ADF-OCR blend to OCR-only, and finally (iii) OCR-only to cessation of regular assistance from the Bank. This approach encompasses the entire graduation spectrum rather than narrowly focusing on graduation either from ADF or OCR. The approach proposed in this Paper is dealt within two parts: Part A relates to the process of graduation from ADF and Part B relates to the process of graduation from regular Bank assistance.
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  1. R15-97. Sixth Replenishment of the Asian Development Fund, 18 February 1997.


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III. Graduation Policies of Other Multilateral Development Banks
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A. Graduation From ADF