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Fighting Poverty in Asia and the Pacific: The Poverty Reduction Strategy

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A Program for Action

Retooling for Poverty Reduction

Beginning in 2000, ADB will prepare an annual action plan for poverty reduction. The plan will identify all poverty-focused activities to be undertaken during the year. The activities will include the country operational strategies to be initiated, and poverty and core poverty interventions and poverty-related technical assistance to be processed or implemented.

By the end of 1999, ADB will assign, to all operational departments, staff whose functions will be to

1. prepare and monitor the implementation of departmental action plans for poverty reduction;
2. provide technical support to staff undertaking poverty operations; and
3. exercise quality control over the department's poverty reduction activities (such as poverty analysis, poverty and core poverty interventions).

To signal commitment to the strategy, and help drive its implementation across the institution, ADB will establish, by the end of 1999, a poverty reduction unit directly responsible to top management. The unit will provide the analytical and operational framework to guide all departments and offices concerned with implementing the Poverty Reduction Strategy, and monitor progress. To this end, the unit will

1. prepare and monitor implementation of the annual ADB-wide action plan for poverty reduction, and ensure quality standards;
2. help define the data requirements for poverty statistics and develop the poverty research agenda;
3. prepare operational guidelines and a staff handbook on design of poverty interventions; and
4. prepare progress reports, organize conferences and forums, and promote dialogue on poverty reduction in the region.

The need to continue the unit will be kept under review, in light of progress achieved in mainstreaming poverty reduction in ADB.

Greater efforts will be made to encourage a multidisciplinary and country-focused approach to poverty reduction. It will be critical for ADB staff to "think poverty" at all times. By 2002, ADB will ensure that all departments concerned acquire the skills needed for antipoverty activities (e.g., gender assessment, public expenditure review, institutional analysis, and facilitation of stakeholder consultations and participation). To this end, staff positions will be redeployed to ensure that operational departments will be able to obtain the requisite expertise and experience. However, since this by itself is unlikely to be sufficient, a significant number of new staff positions will also be required.

ADB will provide for all operational and new staff, including heads of departments and managers, training in poverty reduction methodologies and techniques.

ADB will strengthen its resident missions to facilitate effective implementation of the Poverty Reduction Strategy. The resident missions will monitor the poverty indicators and milestones set out in the partnership agreements and assist in gathering and disseminating up-to-date information and data on poverty. Wherever possible, ADB will engage local professionals to assist in these activities .

Beginning in 2000, ADB will implement an accelerated program to strengthen its statistical database on poverty. In addition, the ADB Institute will enhance its work program and activities on poverty issues facing the region.

New Instruments

ADB will be creative in the way it finances poverty operations. This will include

1. considering special terms for poverty reduction projects financed from ADB's (nonconcessional) ordinary capital resources, to enable ADB to sharpen its focus on poverty in countries that have access only to this lending window (such as the People's Republic of China and India);
2. exploring the need for special purpose funds (e.g., to support the contribution of civil society to development, or promote private sector involvement in poverty reduction); and
3. making greater use of existing instruments, such as pilot projects, sector development programs, and social investment funds that are especially suited to poverty reduction operations.

Program and Lending Targets

ADB will
1. beginning in 2000, develop partnership agreements that set comprehensive program targets for lending and nonlending activities in each of its borrowing countries;
2. devote not less than 40 percent of its public sector lending to poverty interventions by 2001; and
3. substantially increase its lending for core poverty interventions by 2002.

Working with Partners

ADB will
1. offer support to strengthen capacity in borrowing countries to measure, analyze, and monitor trends in poverty, beginning 2000;
2. involve stakeholders in the process of poverty analysis, and encourage their participation in the high-level poverty forums (that precede the country operational strategies and partnership agreements); and
3. build on the work of other multilateral and bilateral agencies, and NGOs, expand coordination with them, and make best use of their comparative strengths through innovative cofinancing arrangements.

Monitoring Progress in Poverty Reduction

ADB will
1. report annually to the Board of Directors on its poverty reduction efforts and the progress being made toward meeting national and regional poverty reduction targets; and
2. convene, every three years, beginning in 2000, an Asian and Pacific poverty forum, comprising representatives from governments, civil society, and the funding community, to review progress of efforts by ADB and borrowing countries to reduce poverty.

Review of the Strategy

ADB will review this Strategy after three years.

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