The GCF is a multi-donor umbrella facility with the aim to support government-led governance reforms aimed at improving transparency, accountability, predictability and/or participation. The fund was established in November 2001 and falls within the scope of ADB’s Good Governance Policy (1995) and Promoting Good Governance: Medium-Term Agenda and Action Plan (2000)
The supported activities must have strong links to ADB operational activities and/or concerns consistent with the country strategies and programs (CSPs); the stronger the link, the higher the priority. Further, given the same degree of linkage to operations, those activities that can be shown to contribute concretely to reducing poverty will be given higher priority over others. Individual donor countries participating in the GCF may specify further priorities for their respective contributions.
The GCF may be used to fund consultants, capacity building activities (for NGOs, community based organizations, media, the judiciary, the legislature, DMC national agencies, and/or local governments), small capital investments such as for computerization and facilities for capacity-building, seed funding for pilot innovative activities, studies with demonstrable implications for the design of governance reforms and/or institutions.
All ADB DMCs are eligible for the funding.
The fund was originally established through an untied grant contribution from the Government of Canada in 2001. Since then, Ireland, Denmark, and Norway have made contributions to support GCF.