| Date: | April 2013 |
| Type: | Statutory Reports and Official Records |
| Subject: | ADB funds and products; ADB administration and governance |
| Series: | Annual Report on the Country Performance Assessment Exercise |
The Asian Development Bank (ADB) links the allocation of Asian Development Fund (ADF) resources to country performance.1 This system is based on the principle that aid is most effective in accelerating economic growth and poverty reduction in countries where policy and institutional performance is strong. Under the performance-based allocation (PBA) policy, ADB gauges the relative performance of eligible borrowers with access to the ADF by conducting annual country performance assessments (CPAs) and uses the CPA results to derive ADF allocations. This annual report provides information on the conduct and results of the 2012 assessments. It also summarizes efforts to harmonize ADB’s allocation system with similar approaches to the PBA of concessional resources at other multilateral development banks (MDBs).