Poverty Reduction

ADB's Project Classification System

To monitor its development work, ADB classifies its public and private sector investments (loans, guarantees, equity investments and grants) and technical assistance activities. Project classification started in 1966 (sector classification), and revisions were made in 1995 (adding thematic priorities) and in 2004 (reflecting ADB's overarching goal of poverty reduction).[ PDF: 190kb | 32 pages ]

A comprehensive review of the classification system suggested quantifying ADB's contributions into development results of partner countries. The new system implemented in 2008 tracks the following:

• partnerships, i.e. how much the project cooperates with the private sector and other development partners;
• project location, i.e. how much the project contributes to rural, urban, national, and regional development;
• sector contribution, i.e. how much financial inputs ADB contributes to a sector and possible multiple subsectors and key activity areas;
• strategic development themes, i.e. ADB's weighted contribution to partner country's and ADB's strategic development objectives, as highlighted in ADB's new Long Term Strategic Framework II; and
• the manner of the project's contribution to ADB's overarching goal of poverty reduction (either general or targeted intervention).

The results of the project classification analysis are one basis for ADB's Annual Poverty Reduction and Development Effectiveness Reports.