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2007 Development Effectiveness Review

2007 Development Effectiveness Review

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The development effectiveness review is a major
milestone that helps track ADB’s progress toward its
goals. Beginning in 2008, the review will annually assess
the development progress in Asia and the Pacific, ADB’s
contribution to country outcomes, and ADB’s operational
and organizational effectiveness.
The development effectiveness review is a major
milestone that helps track ADB’s progress toward its
goals. Beginning in 2008, the review will annually assess
the development progress in Asia and the Pacific, ADB’s
contribution to country outcomes, and ADB’s operational
and organizational effectiveness.

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Categories:Types, Research
Published by: Asian Development Bank on Mar 03, 2011
Copyright:Traditional Copyright: All rights reserved

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05/09/2013

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The long-term strategic framework 2008–2020 (Strategy
2020) of the Asian Development Bank (ADB) sets
out a vision of an Asia and Pacific region that has
largely conquered poverty by 2020. But that future
is not preordained. Much work lies ahead to build a
more equitable, environmentally sustainable and well-
integrated region where growth benefits everyone.

ADB has a vital role to play in creating this future. To play
that role well, ADB has committed itself to reshaping,
redirecting, and repositioning the organization to
become a more innovative and effective development
partner in the region and within the international aid
architecture.

The development effectiveness review is a major
milestone that helps track ADB’s progress toward its
goals. Beginning in 2008, the review will annually assess
the development progress in Asia and the Pacific, ADB’s
contribution to country outcomes, and ADB’s operational
and organizational effectiveness.

This inaugural review provides important messages and
serves as a launching point for further improvements
to achieve development effectiveness. The review finds
that, as a whole, Asia and the Pacific continues to grow
quickly. The region is likely to achieve the Millennium
Development Goal (MDG) of halving the incidence of
poverty by 2015, although new estimates indicate that
poverty is more severe and the task of reducing poverty
is more challenging. The region faces other challenges
also. It is far short of achieving targets in most of the
human development indicators, including primary
health, control of communicable diseases, access
to water and sanitation, and gender equality. Large
segments of the population still do not have access to
basic infrastructure, and much more needs to be done
to improve the region’s investment climate. In a more
immediate term, the region is facing growing risks and
uncertainties following the global financial crisis, high
inflation, and rising food prices. Responding judiciously
to these urgent issues is critical for the region to sustain
high growth and advance on poverty reduction.

In 2004–2007, ADB operations have generated
considerable levels of sector outputs which had
contributed to meeting the priority development needs
of its DMCs. Infrastructure projects are helping provide
livelihoods, increase incomes, and enable better access
to health and education. ADB’s operations with high
proportions of overall operations in rural finance, rural
land improvement and rural roads are inclusive.
Through its operations in water and sanitation, ADB
has contributed to improving the living environment and
creating better health conditions. Gender mainstreaming
has provided women and girls with better access to
quality education, credit, and employment opportunities.
ADB operations in environmentally sustainable growth
are increasing to help meet the region’s needs, as are
its contributions to regional cooperation and integration.
ADB has also played an important role in creating sound
policy frameworks and building institutional capabilities
for development. While ADB expects to deliver a higher
level of outputs in most areas in 2009–2012, the current
financial crisis demands that ADB play a much bigger
role in mobilizing finance and knowledge to its DMCs.

In terms of operational effectiveness, ADB’s project
quality at all stages is improving. However, the quality at
entry ratings for Country Partnership Strategies (CPS)
were low in 2006, and results-based country strategies
have not been evaluated yet. Finance mobilization has
improved and overall lending has increased dramatically.
The level of disbursements and the disbursement ratio
have also improved. Demonstrating ADB’s increasing
selectiveness, almost 70% of operations are in
core sectors. However, operations in private sector
development, environmental sustainability and regional
cooperation and integration need to be expanded. ADB
is making progress in becoming a learning organization,
improving communications and outreach, and
strengthening partnerships with stakeholders including
taking their perceptions into account to improve
performance. However, several challenges remain.

Internally, ADB’s 2004 human resources strategy has
focused on introducing a more transparent, merit-based,

2007 Development
Effectiveness Review

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and efficient human resources management system.
However, as the recent staff engagement survey reveals,
more work needs to be done. ADB is reviewing its human
resources strategy and will introduce human resource
measures to ensure effective execution of Strategy
2020. ADB has also made headway in streamlining
business processes, increasing resident mission
responsibilities, and improving its results orientation
through the managing for development results initiative.
Sustaining progress in these areas is critical.

Considering the huge investment needs in the region
and the additional demands on ADB in the aftermath
of the global financial crisis, ADB must increase its
value addition quickly by expanding and deepening its
operational impact. The Development Effectiveness
Review has identified opportunities for ADB to learn,
grow, and evolve to a reliable development partner
for its DMCs. ADB Management is committed to
responding to the key findings of this review by taking
specific actions and reviewing the status regularly.

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