Regional: Supporting Development Partnerships in East Asia

Sovereign Project | 45063-001

Summary

The TA aims to enhance development partnerships between ADB and PRC and between ADB and MON by proposing a set of policy recommendations that the PRC and MON governments can adopt. Fora at the country level with the highest level of representation will be organized and conducted to identify and discuss issues that can assist (i) the PRC in its transition from middle income to a high income country, and (ii) MON in meeting the development challenges that it faces from boom-bust cycle of growth.

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Project Name Supporting Development Partnerships in East Asia
Project Number 45063-001
Country Regional
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7784-REG: Supporting Development Partnerships in East Asia
Technical Assistance Special Fund US$ 225,000.00
TA 7784-REG: Supporting Development Partnerships in East Asia (Supplementary)
Technical Assistance Special Fund US$ 200,000.00
TA 7784-REG: Supporting Development Partnerships in East Asia (2nd Supplementary)
Technical Assistance Special Fund US$ 750,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector Public sector management - Economic affairs management
Gender Equity and Mainstreaming
Description

The TA aims to enhance development partnerships between ADB and PRC and between ADB and MON by proposing a set of policy recommendations that the PRC and MON governments can adopt. Fora at the country level with the highest level of representation will be organized and conducted to identify and discuss issues that can assist (i) the PRC in its transition from middle income to a high income country, and (ii) MON in meeting the development challenges that it faces from boom-bust cycle of growth.

The TA will help (i) prepare background papers on economic and thematic subjects of the fora by distinguished experts; (ii) provide logistical support for the conduct of separate fora in PRC and MON; and (iii) support participation of select participants in the fora. The TA will also support participation of distinguished experts in the fora. Policy makers, academicians and practitioners will be invited to participate in the fora. The focused debate, the panel discussions, and the summary of proceedings will provide valuable information for the formulation of far-reaching development policies. Summary of proceedings containing the main policy recommendations will be prepared and published.

Project Rationale and Linkage to Country/Regional Strategy Sustaining economic growth over time requires successfully addressing the different challenges inherent to the growth process. In any economy, each stage of development entails obstacles that must be overcome for growth to continue. Hence, a different approach is required at every stage of development. Countries that fail to address the challenge face the risk of income growth stagnation, a phenomenon known in the economic literature as an income trap'. International experience suggests that moving up from middle income to high income status appears to be more complex than moving up from the low-income to middle-income range. In this connection, it has also been observed that growth strategies that proved successful in earlier stages of development are less effective when moving up to high income levels. Against this backdrop, the main broad determinants of growth success are policy capability, private sector dynamism, and good governance.
Impact Enhanced development partnerships between ADB-PRC and ADB-MON
Project Outcome
Description of Outcome Policy recommendations for the PRC and MON governments
Progress Toward Outcome

1. Policy recommendations for PRC's transition from middle income to high income were identifed and presented at the ADB-PRC Forum on Challenges and Opportunities of Middle Income Transition on 22 March 2011 in Beijing.

2. Most of the policy options suggested for PRC are embedded in the context of economic rebalancing. However, rebalancing is a complex process that covers a wide range of structural adjustments, on both the supply and demand sides of the economy. Therefore, the process will require a comprehensive reform package of mutually supportive and consistent policies, rather than a single policy pursued in isolation. Foremost, the process requires accelerated economic transformation and growth pattern restructuring. In this pursuit, a more determined stance towards inclusive growth and environmental sustainability is needed to secure long-term growth, and to overcome the imbalances generated by three decades of rapid growth. Detailed policy recommendations are contained in the Forum report.

3. Policy recommendations on the road map for a happy, healthy, and harmonious MON were presented during the ADB-MON Partnership Forum on 9-11 October 2011. Policy suggestions covered how Mongolia can achieve inclusive and environmentally sustainable development, with focus on macroeconomic management of its resources and addressing the key challenges of poverty and environmental management.

Implementation Progress
Description of Project Outputs ADB-PRC and ADB-MON fora are successfully conducted
Status of Implementation Progress (Outputs, Activities, and Issues)

The following outputs and activities were achieved, contributing to project outomce:

1. The ADB-PRC Forum on Challenges and Opportunities of Middle Income Transition was conducted on 22 March 2011 in Beijing with the PRC Minister of Finance and ADB President opening the Forum. The Forum was also an occasion to celebrate the 25 years of ADB-PRC partnership. A publication on the impact stories showcasing ADB assistance to PRC was launched at the Forum.

2. Eight eminent experts, led by Joseph Stiglitz, Nobel Awardee in Economics, presented papers with various themes and viewpoints on policy options for PRC on its journey from middle income to high income. Other distinguished experts include Masahiko Aoki, Professor Emeritus at Stanford Univesity; Dwight Perkins, Professor, Harvard University; Nicholas Lardy, Senior Fellow at Peterson Institute for International Economics; Wing Thye Woo, Professor, University of California at Davis; Yiping Huang, Professor, Peking University; Hu Angang, Professor, Tsinghua University; and Alicia Garcia-Herrero, Chief Economist for Emerging Markets at Banco Bilbao Vizcaya Angentaria.

3. Almost 200 participants attended the Forum. High level officials from the PRC Government (Ministry of Finance, Ministry of Foreign Affairs, Ministry of Education, People's Bank of China, State Council Leading Group Office of Poverty Alleviation and Development, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Commerce, Finance Bureaus of Beijing, Gansu, Ningxia, Hubei, and Henan, Asia-Pacific Finance and Development Center, and China Center for International Economic Exchanges); development partners (World Bank, United Nations Development Program, International Labor Organization, Japan Bank for International Cooperation, German International Cooperation, Embassies of the USA, Spain, Norway, and Belgium, and International Centre for Trade and Sustainable Development); the private sector (China Eximbank, Bank of China, BNP Paribas, Deutsche Bundesbank, Goldman Sachs, China International Capital Corporation Ltd, A Capital, Dragonomics, Beijing Private Equity Association, Chinalytics); academe (Chinese Academy of Social Sciences, Tsinghua University, Renmin University of China, Peking University, China Social Enterpreneur Foundation, and Institute of Strategy, Party School of the Central Committee of the CPC); media and ADB staff participated in the dialogue of issues and options available for PRC.

4. ADB and the Government of Mongolia organized the ADB-MON Partnership Forum: A Roadmap for Happy, Healthy, and Harmonius Mongolia on 9-11 October 2011 in Ulaanbaatar, with the President of Mongolia, Tsakhia Elbegdorj, and ADB President Kuroda, and Mongolia Finance Minister Sangajav Bayartsogt in attendance. Nobel laureate R. K. Pachauri from the Intergovernmental Panel on Climate Change led the discussion on policy issues affecting the development of Mongolia. Central Bank Deputy Governor of Chile, Martin Marfan; Beatriz Nofal, President, Agency for the Investment Development, Ministry of Economy and Public Finance, Argentina; Prof. Kelechi Kalu from Ohio State University; Alan Turley, FedEx Vice President, and other prominent experts joined the policy discussions.

5. About 100 participants from government (President's Office; Members of Parliament; Ministry of Finance; Ministry of Road, Transportation, Construction and Urban Development; Ministry of Health; Bank of Mongolia), private sector, academe, civil society, and development partners (embassies of USA, Germany, PRC, Republic of Korea, India, Japan, UNDP, EBRD, World Wildlife Fund) joined the Forum discussions on how Mongolia can achieve inclusive and environmentally sustainable development, with focus on macroeconomic management of its resources and addressing the key challenges of poverty and environmental management. The Forum was also an occasion to celebrate 20 years of ADB-MON partnership. A publication on the successes of the ADB-MON partnership was launched at the Forum.

6. Two publications on the impact stories of ADB projects in PRC and MON were published in time for the ADB-PRC Forum and ADB-MON Forum, respectively.

7. The International Conference on Challenges and Opportunities for Sustainable Development was held on 4-5 October 2012 in Ulaanbaatar on the occasion of the 70th anniversary of the National University of Mongolia. The President of Mongolia and ADB President opened the conference. Nobel laureate R. K. Pachauri from the Intergovernmental Panel on Climate Change led international experts from Japan, the Republic of Korea, Netherlands, USA and UNEP and 100 conference participants in the discussion of developmental issues facing MON.

8. RKSI Expert's (secondee) participation at the ADB-Ministry of Environmental Protection International Liaohe Basin Conference on 11-12 July 2013 in Shenyang, PRC.

Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design During SSTA design, consultation was done with the Ministry of Finance of the PRC and MON and within ADB.
During Project Implementation The ADB-PRC Forum enabled wide consultation among stakeholders, i.e., ADB, government, development partners, the private sector, academe, and media.
Business Opportunities
Consulting Services

The TA will be implemented by hiring international and national consultants recruited and supervised by ADB's East Asia Department.

The TA will be implemented in 8 months from March to October 2011; and will require about 4 person-months of international consultants

and 2 person-months of national consultants with expertise in development economics.

Responsible ADB Officer Fei Yu
Responsible ADB Department East Asia Department
Responsible ADB Division Office of the Director General, EARD
Executing Agencies
Asian Development Bank6 ADB Avenue, Mandaluyong
Metro Manila, Philippines
P.O. Box 789, 1099 Manila,
Philippines
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 02 Mar 2011
Last Review Mission -
Last PDS Update 01 Oct 2013

TA 7784-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
02 Mar 2011 - 02 Mar 2011 31 Oct 2011 31 Dec 2015 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,175,000.00 0.00 0.00 0.00 0.00 0.00 1,175,000.00 02 Mar 2011 574,968.04

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