Independent Evaluation

Evaluation Presentations

Full Evaluation Report

To enable ADB to continue to contribute to economic and social progress in its developing member countries, ADB's Long-Term Strategic Framework for 2001–2015 specifies operating principles and modalities and marks out organizational and human resource issues.

The framework defines three core strategic areas for ADB: sustainable economic growth, inclusive social development, and governance for effective policies and institutions. It identifies three crosscutting themes: promoting private sector development, supporting regional cooperation and integration, and addressing environmental sustainability.

In 2007, the Operations Evaluation Department in ADB assessed the framework's implementation. Focusing on 2001–2006, it analyzed its relevance, ADB's response to the guidance it gave, and the extent to which ADB had positioned itself for results.

The study rated the relevance of the framework "high." It judged ADB's responsiveness and the initial results achieved "medium" (except in the area of inclusive social development, where they were "low"). The harness of sustainable economic growth, inclusive social development, and governance was deemed conceptually strong and empirically valid in most countries.

The framework called for extra financial and human resources. These were not always forthcoming and constrained implementation. Lack of a results framework, inadequate data management, and the multiplicity of strategic documents with weak links to corporate planning and budgeting also limited potential.

The study opined that ADB's future performance would be governed by ability to adapt operations and instruments to rapidly changing country needs, and by how it enhances institutional effectiveness in terms of human resources, business procedures, incentive systems, and results orientation.

Middle-income countries are evolving faster. They demand knowledge products and services, policy advice, private sector development, environmental management, and regional cooperation.

The study concluded that the framework has moved the poverty agenda in weakly performing and low-income countries. But, the need to address differences between countries has become clearer and requires greater focus on country needs and priorities.

The study noted that the operating principles of the framework had changed from country-driven sector selectivity to ADB-determined sector selectivity. This calls for clearer and alternative approaches to reconcile country needs and ADB strengths.

A core ADB strength has been its work to promote sustainable economic growth. But, greater operational clarity is needed on types of growth and forms of assistance: the needs and roles of graduating and graduated (nonborrowing) countries require explicit strategic attention.

Elsewhere, the study noted that public-private partnerships have been a relevant but underutilized form of assistance. Staff and financial resources allocated to inclusive social development have been insufficient to address the wide scope of issues. A clearer and more effective strategy for good governance is needed to better guide operations.

All in all, the framework's thematic areas were deemed relevant. However, they would benefit from strategic mainstreaming and better resourcing.

Lastly, the study identified that corporate plans and budgets should define the expected results chain and identify a monitoring and evaluation system. The latter requires an integrated and efficient data system.

The study clarified the roles that ADB might play: (i) finance development projects; (ii) provide high-quality policy advice, analytical work, and related knowledge products and services; and (iii) catalyze the mobilization of resources with other development partners, the private sector, and newly emerging bilateral donors.

To these ends, ADB should focus on binding development constraints and sector priorities in each country. Sector selectivity should be enshrined in the country partnership strategy. ADB should cut the number of strategic statements to guide operations more effectively, and enhance clarity by focusing on one set of strategic directions over a combination of sector and thematic areas.

The study advised also that ADB should expand private sector operations by building synergies with the public sector.

In support, ADB should invest in human resources; balance resource allocation and incentives between project preparation and implementation; build its ability to provide knowledge products and services; enhance information management systems; and monitor and evaluate progress and likely development results.