In December 1995, the Asian Development Bank's (ADB) Board of Directors approved the establishment of an Inspection Function to provide a forum for project beneficiaries to appeal to an independent body relating to ADB's compliance with its operational policies and procedures in ADB-assisted projects. The ADB Inspection Function was the third accountability mechanism (AM) established by multilateral development banks, following the creation of inspection mechanisms at the World Bank in 1993 and the Inter-American Development Bank in 1994.
In May 2003, ADB introduced the AM policy after an extensive review of the Inspection Function. The mechanism was built on the Inspection Function and benefited from intensive public consultations. It encompassed two mutually supportive functions: problem solving and compliance review. The 2003 AM policy was designed to enhance ADB's development effectiveness and project quality; be responsive to the concerns of project-affected people and fair to all stakeholders; reflect the highest professional and technical standards in its staffing and operations; be as independent and transparent as possible; and be cost-effective, efficient, and complementary to the other supervision, audit, quality control, and evaluation systems already in place at ADB. The 2003 AM policy was declared effective on 12 December 2003.
The 2003 AM consisted of two separate but related phases: (i) a Consultation Phase - to assist people who are adversely affected by ADB-assisted projects on finding ways to address their problems. It was led by ADB's Special Project Facilitator; and (ii) a Compliance Review Phase - to establish ADB's accountability in its operations by providing a forum in which project-affected people (and in special circumstances, any ADB Board member) can file requests for a compliance review. The Compliance Review Panel was responsible for this phase.
At the 43rd Annual Meeting of the Board of Governors of ADB in Tashkent in May 2010, President Kuroda announced that ADB would undertake a joint Board-Management review of its AM. A joint Board and Management Working Group was established to undertake the review, comprising of four Board members and the Managing Director General. Two international external experts were engaged to assist in the review. The review included an extensive public consultation process.
Policy Review Background Papers
The working group consisted of four Board members and one member from the Management. The composition of the working group is listed below.
- Executive Director Eduard Westreicher, Chair
- Executive Director Siraj Shamsuddin
- Alternate Executive Director Dereck Rooken-Smith was replaced by Alternate Executive Director C.J. (Stan) Vandersyp
- Alternate Executive Director Govinda Bahadur Thapa
- Managing Director General Rajat Nag