Funds and Resources

ADB offers loans, grants, and technical assistance from Special Funds, Trust Funds, and other sources to help reduce poverty in Asia’s poorest countries.

Status: Closed

Governance Cooperation Fund

What is the Governance Cooperation Fund?

The Governance Cooperation Fund 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).

What are the objectives of the fund?

  • Improve the transparency, accountability, predictability, and/or the participatory aspects of decision making in the public sector in developing member countries (DMCs).
  • Promote the mainstreaming of focused and technically well-informed participation of nongovernment organizations (NGOs) and other community organizations as an integral part of public decision-making processes (e.g., participation in different phases of the budget cycle).
  • Enhance the capacity of DMC governments to design and implement governance reforms.
  • Encourage and assist in the development of focused governance-related activities that support:
    • the improvement in the welfare of the poor and other vulnerable groups in society (e.g., designing an appropriate governance structure for a microfinance program);
    • programs/projects that promote the emergence and/or growth of small and medium-sized enterprises (SMEs) (e.g., conduct of firm surveys on constraints to growth of SMEs); and
    • activities that strengthen the management capability of local governments (e.g., systematic linking of planning and budgeting at the local level).
  • Promote regional initiatives including selected exchanges with other non-ADB regions.

What are the priorities of the fund?

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 fund may specify further priorities for their respective contributions.

What kind of activities will be supported by the fund?

The fund 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 computerization and facilities for capacity building; seed funding for pilot innovative activities; and studies with demonstrable implications for the design of governance reforms and/or institutions.

Who is eligible to receive the grant?

All ADB DMCs are eligible for the funding.

Who supports the grant? 

The fund was originally established through an untied grant contribution from the Government of Canada in 2001. Since then, Denmark, Ireland, and Norway have made contributions to support the fund.