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Asian Development Bank

ADB logo

Motto

Fighting poverty in Asia and the Pacific

Formation

22 August 1966

Type

Regional organization

Legal status

Treaty

Purpose/focus

Crediting

Headquarters

Mandaluyong City, Metro Manila, Philippines

Region served

Asia-Pacific

Membership

67 countries

President

Haruhiko Kuroda

Main organ

Board of Directors[1]

Staff

2,500+

Website

http://www.adb.org

Asian Development Bank member states Outside regions Asia-Pacific region

The Asian Development Bank (ADB) is a regional development bank established on 22 August 1966 to facilitate economic development of countries in Asia.[2] The bank admits the members of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP, formerly known as the United Nations Economic Commission for Asia and the Far East) and non-regionaldeveloped countries.[2] From 31 members at its establishment, ADB now has 67 members - of which 48 are from within Asia and the Pacific and 19 outside. ADB was modeled closely on the World Bank, and has a similar weighted voting system where votes are distributed in proportion with member's capital subscriptions. At present, both the United States and Japan hold 552,210 shares, the largest proportion of shares at 12.756% each. [3] China holds 228,000 shares (6.429 %), India holds 224,010 shares (6.317 %), the 2nd and 3rd largest proportion of shares respectively.
Contents
[hide]

1 Organization 2 History

o o o

2.1 1962-1972 2.2 1972-1986 2.3 Since 1986

3 Lending 4 Notable projects and technical assistance 5 Effectiveness

6 Criticism 7 United Nations Development Business 8 Strategy 2020 9 Members 10 See also 11 References 12 External links

[edit]Organization

ADB Headquarters in Mandaluyong City

The highest policy-making body of the bank is the Board of Governors composed of one representative from each member state. The Board of Governors, in turn, elect among themselves the 12 members of the Board of Directors and their deputy. Eight of the 12 members come from regional (Asia-Pacific) members while the others come from non-regional members. The Board of Governors also elect the bank's President who is the chairperson of the Board of Directors and manages ADB. The president has a term of office lasting five years, and may be reelected. Traditionally, and because Japan is one of the largest shareholders of the bank, the President has always been Japanese. The current President is Haruhiko Kuroda, who succeeded Tadao Chino in 2005. The headquarters of the bank is at 6 ADB Avenue, Mandaluyong City, Metro Manila, Philippines,[4][5] and it has representative offices around the world. The bank employs approximately 3,000 people, coming from 55 of its 67 member countries, and with more than half of the staff being Filipino.

[edit]History

[edit]1962-1972
ADB was originally conceived by some influential Japanese who formulated a "private plan" for a regional development bank in 1962, which was later endorsed by the government. The Japanese felt that its interest in Asia was not served by the World Bank and wanted to establish a bank in which Japan was institutionally advantaged. Once the ADB was founded in 1966, Japan took a prominent position in the bank; it received the presidency and some other crucial "reserve positions" such as the director of the administration department. By the end of 1972, Japan contributed $173.7 million (22.6% of the total) to the ordinary capital resources and $122.6 million (59.6% of the total) to the special funds. In contrast, the United States contributed only $1.25 million for the special fund.[2] The ADB served Japan's economic interests because its loans went largely to Indonesia, Thailand, Malaysia, South Koreaand the Philippines, the countries with which Japan had crucial trading ties; these nations accounted for 78.48% of the total ADB loans in 1967-72. Moreover, Japan received tangible benefits, 41.67% of the total procurements in 1967-76. Japan tied its special funds contributions to its preferred sectors and regions and procurements of its goods and services, as reflected in its $100 million donation for the Agricultural Special Fund in April 1968.[2] Takeshi Watanabe served as the first ADB president from 1966 to 1972.

[edit]1972-1986
Japan's share of cumulative contributions increased from 30.4 percent in 1972 to 35.5 percent in 1981 and 41.9 percent in 1986. In addition, Japan was a crucial source of ADB borrowing, 29.4 percent (out of $6,729.1 million) in 1973-86, compared to 45.1 percent from Europe and 12.9 percent from the United States. Japanese presidents Inoue Shiro (197276) and Yoshida Taroichi (197681) took the spotlight. Fujioka Masao, the fourth president (198190), adopted an assertive leadership style. He announced an ambitious plan to expand the ADB into a high-impact development agency. His plan and banking philosophy led to increasing friction with the U.S. directors, with open criticism from the Americans at the 1985 annual meeting. [2] During this period there was a strong parallel institutional tie between the ADB and the Japanese Ministry of Finance, particularly the International Finance Bureau (IFB).

[edit]Since

1986

Its share of cumulative contributions increased from 41.9 percent in 1986 to 50.0 per- cent in 1993. In addition, Japan has been a crucial lender to the ADB, 30.4 percent of the total in 1987-93, compared to 39.8 percent from Europe and 11.7 percent from the United States. However, different from the previous period, Japan has become more assertive since the mid 1980s. Japan's plan was to use the ADB as a conduit for recycling its huge surplus capital and a "catalyst" for attracting private Japanese capital to the region. After the 1985Plaza Accord, Japanese manufacturers were pushed by high yen to move to Southeast Asia. The ADB played a role in channeling

Japanese private capital to Asia by improving local infrastructure. [2] The ADB also committed itself to increasing loans for social issues such as education, health and population, urban development and environment, to 40 percent of its total loans from around 30 percent at the time. [2]

[edit]Lending
The ADB offers "hard" loans from ordinary capital resources (OCR) on commercial terms, and the Asian Development Fund (ADF) affiliated with the ADB extends "soft" loans from special fund resources with concessional conditions. For OCR, members subscribe capital, including paid-in and callable elements, a 50 percent paid-in ratio for the initial subscription, 5 percent for the Third General Capital Increase (GCI) in 1983 and 2 percent for the Fourth General Capital Increase in 1994. The ADB borrows from international capital markets with its capital as guarantee.[2] In 2009, ADB obtained member-contributions for its Fifth General Capital Increase of 200%, in response to a call by G20 leaders to increase resources of multilateral development banks so as to support growth in developing countries amid the global financial crisis. For 2010 and 2011, a 200% GCI allows lending of $12.513.0 billion in 2010 and about $11.0 billion in 2011.[6] With this increase, the bank's capital base has tripled from $55 billion to $165 billion.[7]

[edit]Notable

projects and technical assistance

This Source may contain improper references to self-published sources. Please help improve it by removing references to unreliable sources, where they are used inappropriately. (September 2010)

Afghan Diaspora Project Funding Utah State University led projects to bring labor skills in Thailand[citation needed] Earthquake and Tsunami Emergency Support Project in Indonesia Greater Mekong Subregional Program[8] ROC Ping Hu Offshore Oil and Gas Development Strategic Private Sector Partnerships for Urban Poverty Reduction in the Philippines Trans-Afghanistan Gas Pipeline Feasibility Assessment Loan of $1.2 billion to bail it out of an impending economic crisis in Pakistan and ongoing funding for the countries growing energy needs, specifically Hydro-power projects[9]

Micro finance support for private enterprises, in conjunction with governments, including Pakistan and India.

The Yichang-Wanzhou Railway project in the mountainous area of western Hubei Province and northeastern Chongqing Municipality, China. (A US $500,000 loan, approved in 2003.)[10]

[edit]Effectiveness This Source may contain improper references to self-published sources. Please help improve it by removing references to unreliable sources, where they are used inappropriately. (September 2010)
Given ADB's annual lending volume, the return on investment in lesson-learning for operational and developmental impact is likely to be high; maximizing it is a legitimate concern. All projects funded by ADB are evaluated to find out what results are being achieved, what improvements should be considered, and what is being learned. There are two types of evaluation: independent and self-evaluation. Self-evaluation is conducted by the units responsible for designing and implementing country strategies, programs, projects, or technical assistance activities. It comprises several instruments, including project/program performance reports, midterm review reports, technical assistance or project/program completion reports, and country portfolio reviews. All projects are self-evaluated by the relevant units in a project completion report. ADBs project completion reports are publicly disclosed on ADBs Internet site. Client governments are required to prepare their own project completion reports. Independent evaluation is a foundation block of organizational learning: It is essential to transfer increased amounts of relevant and high-quality knowledge from experience into the hands of policy makers, designers, and implementers. ADBs Independent Evaluation Department (IED) [11] conducts systematic and impartial assessment of policies, strategies, country programs, and projects, including their design, implementation, results, and associated business processes to determine their relevance, effectiveness, efficiency, and sustainability following prescribed methods and guidelines. [12] It also validates self-evaluations. By this process of evaluation, ADB demonstrates three elements of good governance: accountability, by assessing the effectiveness of ADB's operations; transparency, by independently reviewing operations and publicly reporting findings and recommendations; and improved performance, by helping ADB and its clients learn from experience to enhance ongoing and future operations. Operations evaluation has changed from the beginnings of evaluation in ADB in 1978. Initially, the focus was on assessing after completion the extent to which projects had achieved their expected economic and social benefits. Operations evaluation now shapes decision making throughout the project cycle and in ADB as a whole. Since the establishment of its independence in 2004, IED reports directly to ADBs Board of Directors through the Board's Development Effectiveness Committee. Behavioral autonomy, avoidance of conflicts of interest, insulation from external influence, and organizational independence have made evaluation a dedicated tool governed by the principles of usefulness, credibility, transparency, and independencefor greater accountability and making development assistance work better. Independent Evaluation at the Asian Development

Bank presents a perspective of evaluation in ADB from the beginnings and looks to a future in which knowledge management plays an increasingly important role.[13] In recent years,[when?] there has been a major shift in the nature of IED's work program from a dominance of evaluations of individual projects to one focusing on broader and more strategic studies. To select priority topics for evaluation studies, IED seeks input from the Development Effectiveness Committee, ADB Management, and the heads of ADB departments and offices. The current thrusts are to improve the quality of evaluations by using more robust methodologies; give priority to country/sector assistance program evaluations; increase the number of joint evaluations; validate self-evaluations to shorten the learning cycle; conduct more rigorous impact evaluations; develop evaluation capacity, both in ADB and in DMCs; promote portfolio performance; evaluate business processes; and disseminate findings and recommendations and ensure their use. IED's work program has also been reinterpreted to emphasize organizational learning in a more clearly defined results architecture and results framework. It entails conducting and disseminating strategic evaluations (in consultation with stakeholders),[14] harmonizing performance indicators and evaluation methodologies, and developing capacity in evaluation and evaluative thinking.[15] All evaluation studies are publicly disclosed on IED's website (some evaluations of private sector operations are redacted to protect commercially confidential information). [16] IED's evaluation resources are displayed by resource type, topic, region and country, and date. [17] Learnings are also gathered in an online Evaluation Information System offering a database of lessons, recommendations, and ADB Management responses to these.[18] Details of ongoing evaluations and updates on their progress are made public too.[19] Beginning 2006, acting within the knowledge management framework of ADB, IED has applied knowledge management to lesson learning, using knowledge performance metrics. Learning Lessons in ADB sets the strategic framework for knowledge management in operations evaluation.[20] Improvements have been made that hold promise not only in IED but, more importantly, vis--vis its interfaces with other departments and offices in ADB, developing member countries, and the international evaluation community. In the medium term, IED will continue to improve the organizational culture, management system, business processes, information technology solutions, community of practice, and external relations and networking for lesson learning. Among the new knowledge products and services developed, Learning Curves are handy, two-paged quick references designed to feed findings and recommendations from evaluation to a broader range of clients [21] Evaluation News report on events in monitoring and evaluation. Evaluation Presentations offer short photographic or Powerpoint displays on evaluation topics. Auditing the Lessons Architecture highlights the contribution that knowledge audits can make to organizational learning and organizational health.[22] Of the 1,106 ADB-funded projects evaluated and rated so far (as of December 2007), 65% were assessed as being successful, 27% partly successful and 8% as unsuccessful.

[edit]Criticism
Since the ADB's early days, critics have charged that the two major donors, Japan and the United States, have had extensive influence over lending, policy and staffing decisions.[23] Oxfam Australia has criticized the Asian Development Bank of insensitivity to local communities. "Operating at a global and international level, these banks can undermine people's human rights through projects that have detrimental outcomes for poor and marginalized communities."[24] The bank also received criticism from the United Nations Environmental Program, stating in a report that "much of the growth has bypassed more than 70 percent of its rural population, many of whom are directly dependent on natural resources for livelihoods and incomes."[25] There had been criticism that ADB's large scale projects cause social and environmental damage due to lack of oversight. One of the most controversial ADB-related projects isThailand's Mae Moh coal-fired power station. Environmental and human rights activists say ADB's environmental safeguards policy as well as policies for indigenous peoples andinvoluntary resettlement, while usually up to international standards on paper, are often ignored in practice, are too vague or weak to be effective, or are simply not enforced by bank officials.[26][27] The bank has been criticized over its role and relevance in the food crisis.The ADB has been accused by civil society of ignoring warnings leading up the crisis and also contributing to it by pushing loan conditions that many say unfairly pressure governments to deregulate and privatize agriculture, leading to problems such as the rice supply shortage inSoutheast Asia.[28] The bank has also been criticized by Vietnam War veterans for funding projects in Laos, because of the United States' 15% stake in the bank, underwritten by taxes.[29] Laos became a communist country after the U.S. withdrew from Vietnam, and the Laotian Civil War was won by the Pathet Lao, which is widely understood to have been supported by the North Vietnamese Army. In 2009, the bank endorsed a $2.9 billion funding strategy for proposed projects in India. The projects in this strategy were only indicative and still needed to be further approved by the bank's board of directors; however, PRC Foreign Ministry spokesman Qin Gang claimed, "The Asian Development Bank, regardless of the major concerns of China, approved the India Country Partnership strategy which involves the territorial dispute between China and India. China expresses its strong dissatisfaction over this.... The bank's move not only seriously tarnishes its own name, but also undermines the interests of its members." [30]

[edit]United

Nations Development Business

The United Nations launched Development Business in 1978 with the support of the Asian Development Bank, the World Bank, and many other major development banks from around the world. Today, Development

Business is the primary publication for all major multilateral development banks, United Nations agencies, and several national governments, many of whom have made the publication of their tenders and contracts in Development Business a mandatory requirement.[31]

[edit]Strategy

2020

Strategy 2020 is The Long-Term Strategic Framework of the Asian Development and wide strategic framework to guide all its operations to 2020.[32] It reaffirms both ADB's vision of an Asia and Pacific free of poverty and its mission to help developing member countries improve the living conditions and quality of life of their people. Strategy 2020 identifies drivers of change that will be stressed in all its operations - developing the private sector, encouraging good governance, supporting gender equity, helping developing countries gain knowledge, and expanding partnerships with other development institutions, the private sector, and with community-based organizations.

[edit]Members

Asian Development Bank - Developing Member Countries(DMC) graduation stages[33] Outside regions Asia-Pacific region developed members DMC graduated from assistance, Group-D Ordinary Capital Resources (OCR) financing, Group-C OCR and ADF blended financing, Group-B Asian Development Fund (ADF) financing, Group-A

ADB has 67 members (as of 2 February 2007). [3] Names are as recognized by ADB. The year after a member's name indicates the year of membership. The largest share holders of the ADB are Japan and USA, each holding 15.57% of the shares. [34] At the time a country ceases to be a member, the Bank shall arrange for the repurchase of such country's shares by the Bank as a part of the settlement of accounts with such country in accordance with the provisions of paragraphs 3 and 4 of this Article. [35] Republic of China (Taiwan) initially joined as "China" as a founding member representing the whole of China. However, its share of Bank capital was based on the size of Taiwan's capital, unlike the World Bank and IMF where the government in Taiwan had had a share representing the whole of China prior to the People's Republic

of China joining and taking the Republic of China's seat. In 1986, a compromise was effected when the People's Republic of China joined the institution. The ROC was allowed to retain its membership, but under the name of Taipei,China a name it protests. Uniquely, this allows both sides of the Taiwan Straits to be represented at the institution.

Country

Date of Accession

Asian and Pacific region: 48 members

Afghanistan

1966

Australia

1966

Cambodia

1966

India

1966

Indonesia

1966

Japan

1966

Korea, Republic of

1966

Lao People's Democratic Republic

1966

Malaysia

1966

Nepal

1966

New Zealand

1966

Pakistan

1966

Philippines

1966

Samoa

1966

Singapore

1966

Sri Lanka

1966

Taipei, Republic of China

[36]

1966

Thailand

1966

Viet Nam, Republic of 1966 Viet Nam, Socialist Republic of inherited

Hong Kong, China

[37]

1969

Fiji

1970

Papua New Guinea

1971

Tonga

1972

Bangladesh

1973

Burma

1973

Solomon Islands

1973

Kiribati

1974

Cook Islands

1976

Maldives

1978

Vanuatu

1981

Bhutan

1982

China, People's Republic of

1986

Marshall Islands

1990

Micronesia, Federated States of

1990

Mongolia

1991

Nauru

1991

Tuvalu

1993

Kazakhstan

1994

Kyrgyz Republic

1994

Uzbekistan

1995

Tajikistan

1998

Turkmenistan

2000

Timor-Leste

2002

Palau

2003

Brunei Darussalam

2006

verview

The Asian Development Bank aims for an Asia and Pacific free from poverty. Approximately 1.8 billion people in the region are poor and unable to access essential goods, services, assets and opportunities to which every human is entitled.

A leader in development, watch how ADB improves the quality of life for millions in Asia and the Pacific.

Since its founding in 1966, ADB has been driven by an inspiration and dedication to improving peoples lives in Asia and the Pacific. By targeting our investments wisely, in partnership with our developing member countries and other stakeholders, we can alleviate

poverty and help create a world in which everyone can share in the benefits of sustained and inclusive growth. Whether it be through investment in infrastructure, health care services, financial and public administration systems, or helping nations prepare for the impact of climate change or better manage their natural resources, ADB is committed to helping developing member countries evolve into thriving, modern economies that are well integrated with each other and the world. The main devices for assistance are loans, grants, policy dialogue, technical assistance and equity investments. We are at the forefront of development thinking and practice, spreading information through regional forums, a growing online presence and the publication of specialized papers, serials and books. Economists, sociologists, engineers, gender experts and environmental scientists are amongst the hundreds of professions at the bank working together to reduce poverty, and ensure growth across the Asia and Pacific region is sustainable and inclusive.

ADB aims for an Asia and Pacific free from poverty

Approximately 1.8 billion people in the region are poor and unable to access essential goods, services, assets and opportunities to which every human is entitled.

OVERVIEW

Since its founding in 1966, ADB has been driven by an inspiration and dedication to improving peoples lives in Asia and the Pacific. By targeting our investments wisely, in partnership with our developing member countries and other stakeholders, we can alleviate poverty and help create a world in which everyone can share in the benefits of sustained and inclusive growth.

READ MORE

FINANCING OPERATIONS

Public Sector (Sovereign) Financing

ADBs financial products help developing member countries build economic growth and social development. Official Cofinancing

Private Sector (Nonsovereign) Financing

As a catalyst for private investments, ADB provides direct financial assistance to private sector projects. Commercial Cofinancing |Trade Finance Program

Funds and Resources

ADB funds activities in various sectors or for specific themes through loans and grants, financed from ordinary capital resources as well as special and trust funds.

Asian Development Fund

Funded by ADB's member countries, the ADF offers loans at very low interest rates as well as grants to help reduce poverty in ADB's poorest borrowing countries.

Investor Relations
A leading triple-A borrower in the international markets, ADB raises funds regularly through international and domestic capital markets.

OPPORTUNITIES
Careers Business Opportunities Consulting Services ADB - Japan Scholarship Program

OTHER FOCUS AREAS

Accountability Mechanism

Listening to communities affected by ADB-assisted projects and enhancing development effectiveness

ADB and Civil Society

ADB works in partnership with a broad range of civil society organizations to strengthen its efforts to reduce poverty.

Anticorruption and Integrity

The Office of Anticorruption and Integrity is the initial point of contact for allegations of integrity violations involving ADB-related activities or ADB staff.

Development Effectiveness and Results

ADB focuses on results management and contributes to the global agenda on aid effectiveness.

Disclosure
ADB's public communications policy acknowledges the public's right to know about ADB-financed activities.

Independent Evaluation
The Independent Evaluation Department independently and systematically evaluates ADB policies, strategies, and operations.

Knowledge Management
ADB works to ensure that its knowledge continues to expand, is practical and usable to staff and member countries, and remains of the highest quality.

Safeguards
Environmental and social safeguards help avoid, or when avoidance is not possible, minimize and mitigate adverse project impacts.

Members

From 31 members at its establishment in 1966, ADB has grown to encompass 67 members of which 48 are from within Asia and the Pacific and 19 outside. ADB Annual Report 2011: Members, Capital Stock, Voting Power.

Regional Members
Members Afghanistan Armenia Australia Azerbaijan Bangladesh Bhutan Brunei Darussalam Cambodia China, People's Republic of Cook Islands Fiji Georgia Hong Kong, China Year of Membership 1966 2005 1966 1999 1973 1982 2006 1966 1986 1976 1970 2007 1969

India Indonesia Japan Kazakhstan Kiribati Korea, Republic of Kyrgyz Republic Lao PDR Malaysia Maldives Marshall Islands Micronesia, Federated States of Mongolia Myanmar Nauru Nepal New Zealand Pakistan Palau Papua New Guinea Philippines Samoa Singapore Solomon Islands Sri Lanka

1966 1966 1966 1994 1974 1966 1994 1966 1966 1978 1990 1990 1991 1973 1991 1966 1966 1966 2003 1971 1966 1966 1966 1973 1966

Taipei,China Tajikistan Thailand Timor-Leste Tonga Turkmenistan Tuvalu Uzbekistan Vanuatu Viet Nam

1966 1998 1966 2002 1972 2000 1993 1995 1981 1966

Nonregional Members
Austria Belgium Canada Denmark Finland France Germany Ireland Italy Luxembourg The Netherlands Norway Portugal Spain 1966 1966 1966 1966 1966 1970 1966 2006 1966 2003 1966 1966 2002 1986

Sweden Switzerland Turkey United Kingdom United States Philippines Cesar V. Purisima Amando M. Tetangco, Jr.

1966 1967 1991 1966 1966

Board of Directors

The 12 members of the Board of Directors are elected by the Board of Governors. Eight of those 12 are elected by member countries from within the Asia Pacific region, and the four others are elected by member countries from outside the region. Each Director appoints an Alternate. The President of ADB chairs the Board of Directors. Read the Rules of Procedure of the Board of Directors of ADB. The Board of Directors performs its duties full time at the ADB headquarters in Manila, Philippines, and holds formal and executive sessions regularly. The Directors supervise ADB's financial statements, approve its administrative budget, and review and approve all policy documents and all loan, equity, and technical assistance operations. Contact ADB's Board of Directors.
Executive Director Phil Bowen Alternate Executive Director Andrew Collins Members Represented Australia; Azerbaijan; Cambodia; Georgia; Hong Kong, China; Kiribati; Federated States of Micronesia; Nauru; Palau; Solomon Islands; Tuvalu Micheline Aucoin Jacob Rooimans Canada; Denmark; Finland; Ireland; The Netherlands; Norway; Sweden Eduard Westreicher Maurin Sitorus Cedric Crelo C.J. (Stan) Vandersyp Austria; Germany; Luxembourg; Turkey; United Kingdom Armenia, Cook Islands; Fiji; Indonesia; Kyrgyz Republic; New Zealand; Samoa; Tonga Yeo Kwon Yoon Wilson Kamit Republic of Korea; Papua New Guinea; Sri Lanka; Taipei,China; Uzbekistan; Vanuatu; Viet Nam

Gaudencio Hernandez, Jr.

Siraj S. Shamsuddin

Kazakhstan; Maldives; Marshall Islands; Mongolia; Pakistan; Philippines; Timor-Leste

Jrme Destombes Kazuhiko Koguchi Ashok K. Lahiri

Jose Miguel Cortes Hideo Fukushima Bounleua Sinxayvolavong

Belgium; France; Italy; Portugal; Spain; Switzerland Japan Afghanistan; Bangladesh; Bhutan; India; Lao People's Democratic Republic; Tajikistan; Turkmenistan

Robert M. Orr Chaiyuth Sudthitanakorn

Maureen Grewe Govinda Bahadur Thapa

United States Brunei Darussalam; Malaysia; Myanmar; Nepal; Singapore; Thailand

Yingming Yang

Guoqi Wu

People's Republic of China

http://www.adb.org
Strategy 2020: The Long-Term Strategic Framework of the Asian Development Bank 2008-

is the paramount ADB-wide strategic framework to guide all its operations to 2020. It reaffirms both ADB's vision of an Asia and Pacific free of poverty and its mission to help developing member countries improve the living conditions and quality of life of their people. Strategy 2020 identifies drivers of change that will be stressed in all its operations - developing the private sector, encouraging good governance, supporting gender equity, helping developing countries gain knowledge, and expanding partnerships with other development institutions, the private sector, and with community-based organizations. By 2012, 80% of ADB lending will be in five core operational areas, identified as comparative strengths of ADB:
2020

Infrastructure, including transport and communications, energy, water supply and sanitation and urban development Environment Regional cooperation and integration Finance sector development Education

ADB will continue to operate in health, agriculture, and disaster and emergency assistance, but on a more selective basis.

ADB has developed a corporate results framework to assess its progress in implementing Strategy 2020. Annually, it will monitor implementation through the ADB Development Effectiveness Review. Read more ADB publications on Policies and Strategies.

Partners
Engaging in Partnerships is Fundamental to ADB
Strategy 2020, ADB's strategic plan, recognizes partnerships as one of five drivers of change. Partnerships with a diverse group of institutions are crucial in addressing the risks and challenges facing the region; and in meeting the varied requirements for inclusive, environmentally-sustainable growth and regional integration. Partnerships mobilize resources (financial, human, and other), leverage knowledge, meet unique needs for highly specialized development projects, and make aid more effective throughout the region. Partnerships are central to planning, financing, and implementing ADB operations. ADB understands that knowledge is also an important driver to change. ADB's Knowledge Management Framework and Action Plan (2009-2011) identifies knowledge partnerships as one of the four pillars upon which the framework rests. Knowledge partnerships help ADB discover new ideas, enrich its knowledge on development, and share the learning it generates. Demand for concessional financing in Asia and the Pacific exceeds what the Asian Development Fund (ADF) can finance. ADB therefore adopts a system to fairly allocate ADF support among the many competing needs, and to direct the funds to where they will be used most effectively.

Strategic Partnerships
Through its partnerships, ADB seeks to build voluntary collaborative agreements in which parties work together to achieve a common purpose or task, while sharing risks, responsibilities, resources, competencies, and benefits.

This site presents ADB's formal strategic partnerships with international development agencies, multilateral and bilateral institutions, the private sector, nongovernment organizations and civil society, and foundations. ADB has also signed cofinancing agreements with various funding agencies, in an effort to maximize the impact of development assistance through coordination.

Related Documents

Funds and Resources

ADB funds activities in various sectors or for specific themes through loans and grants, financed from ordinary capital resources (OCR) as well as special and trust funds.

OVERVIEW
Most of ADB's lending comes from its ordinary capital resources, offered at near-market terms to lower- to middle-income countries. ADB also provides loans and grants from Special Funds, of which the Asian Development Fund is the largest. The Asian Development Fund offers loans at very low interest rates and grants that help reduce poverty in ADB's poorest borrowing countries. By the end of 2010, ADB was administering 37 trust funds to finance activities in various sectors or for specific themes, including poverty reduction, governance, gender and

development, managing for development results, HIV/AIDS, water, energy, education, information and communication technology, and trade and finance.

DB - Japan Scholarship Program

The Asian Development Bank (ADB) - Japan Scholarship Program (JSP) was established in April 1988 with financing from the Government of Japan. It aims to provide an opportunity for well-qualified citizens of ADB's developing member countries to pursue postgraduate studies in economics, management, science and technology, and other development-related fields at participating academic institutions in the Asian and Pacific Region. Upon completion of their study programs, scholars are expected to contribute to the economic and social development of their home countries. The ADB-JSP enrolls about 300 students annually in 27 academic institutions located in 10 countries within the region. The ADB-JSP provides full scholarships for one to two years.

Overview
As a catalyst for private investments, ADB provides direct financial assistance to private sector projects. While ADBs participation is usually limited, it leverages a large amount of funds from commercial sources to finance these projects. Projects must also have clear development impacts and/or demonstration effects that go beyond the benefits captured in the financial rate of return.

Focus areas
The Private Sector Operations (PSO) strategic framework demands a sharper focus on development impact, and emphasizes

private sector participation in infrastructure and capital market development,

broadening of country and sector reach, wider use of credit enhancement and other instruments, and strategic alliances with other development agencies.

Who is eligible?
To be eligible for assistance, the proposed recipient of ADB's private sector financing

must be established or operating in a DMC; majority owned by the private sector (an entity with more than 50% of its capital held privately); or, in the case of an entity that is owned or controlled by the public sector (an entity with more than 50% of its capital held publicly); or it must be a local government or other subsovereign entity or a state-owned enterprise that can borrow independently form the related sovereign and that can sue and be sued.

Private Sector Operations Department

Private sector projects (nonsovereign private) are processed by the Private Sector Operations Department (PSOD). View project information documents for proposed and approved private sector projects (i.e. infrastructure and capital markets / financial sectors). Alternatively, view all private sector projects (i.e. proposed, approved and closed / cancelled). For inquiries and clarifications, contact us.

Related documents
ADB 2010 Annual Report (Nonsovereign Operations) ADB Financial Profile 2011 ADB Private Sector Operations: Innovation, Impact, Integrity Development Effectiveness Report 2010: Private Sector Operations Development Effectiveness Report 2009: Private Sector Operations Summary of ADB's Nonsovereign Operations (2010) Trade Finance Program

ADB offers a range of financial products that help developing member countries (DMCs) build economic growth and social development. These tools include loans, technical assistance, and grants.

Public sector (sovereign) financing is extended to DMC governments and public sector entities, such as state-owned enterprises. Sovereign lending or financing secured by a government guarantee forms the greater part of ADBs development assistance. Operations are financed from ordinary capital resources (OCR) and a range of special funds, including the Asian Development Fund, which is the largest. In addition, ADB also mobilizes financial resources through cofinancing. Sovereign approvals amounted to $15.40 billion in 2011, an increase of $553 million (4%) from 2010. The top four countries in terms of nonsovereign approvals in 2011 were India, the Lao People's Democratic Republic, Uzbekistan, and the People's Republic of China.
NONSOVEREIGN APPROVALS BY TOP COUNTRIES, 2011
$ Million India Lao Peoples Democratic Republic Uzbekistan China, Peoples Republic of Indonesia Thailand Pakistan Georgia Armenia Other Developing Member Countries Regional 718.00 350.00 300.00 225.00 200.00 170.00 163.61 65.00 30.00 84.00 % 31 15 13 10 9 7 7 3 1 4

NONSOVEREIGN APPROVALS BY TOP COUNTRIES, 2011

$ Million TOTAL
Note:

% 100

2,305.61

Includes loan, equity investment, guarantee, and B loan approvals. Totals may not add up because of rounding.

Official Cofinancing
$3.5 billion was generated in 2011 in official cofinancing from the development assistance windows of external partners, such as government agencies and international organizations, to cofinance 170 ADB projects. This total official cofinancing comprised $3.3 billion for 37 projects and $0.2 billion for 133 technical assistance activities. This amount increased by 13.2% from $3.1 billion in 2010 and marked a record year for grant cofinancing. READ MORE
Official cofinancing is an arrangement under which ADB and one or more donor governments finance a project or program in partnership with a developing member country (DMC). ADB partners with official funding agenciesbilateral as well as multilateralin financing ADB-assisted projects and programs, either for technical assistance activities or components of investment projects. Assistance may be in the form of a grant, loan, or guarantee. Funding from official sources include official development assistance provided by donor governments from their budget appropriations, usually in the form of grants and loans (concessional or nonconcessional), or funds obtained from nonbudgetary official sources and/or capital markets that are provided on semi-commercial terms. These official funding agencies may provide funds on a parallel or joint basis. Most official cofinancing is arranged on a parallel basis. ADB and the cofinancier funds separate components of the project, with the cofinancier following its own procurement procedures. Under joint cofinancing, ADB and the cofinancier together finance common goods and services for the project on a pro rata basis. This type of cofinancing works well when a cofinancier does not tie its assistance to procurement from its own country and agrees to follow ADB's procurement guidelines.

$3.5 billion was generated in 2011 in official cofinancing from the development assistance windows of external partners, such as government agencies and international organizations, to cofinance 170 ADB projects. This total official cofinancing comprised $3.3 billion for 37 projects and $0.2 billion for 133 technical assistance activities. This amount increased by 13.2% from $3.1 billion in 2010 and marked a record year for grant cofinancing.

Benefits for DMCs, funding agencies

For developing member countries (DMCs), ADB's official cofinancing operations maximize the impact of development assistance through coordination of projects with complementary or synergistic benefits; avoid duplication of efforts and promote a consistent approach to development assistance by funding institutions; and expand availability of concessional and nonconcessional development assistance, particularly for DMCs that have yet to gain direct access to commercial financing. For official funding agencies, ADB's official cofinancing operations

maximize the impact of each dollar of development assistance, since ADB coordinates its projects with those of cofinanciers that offer complementary or synergistic benefits; avoid duplication of efforts and promote a consistent approach to development assistance; share the results of ADB's project feasibility studies with cofinanciers; and share project information with cofinanciers during implementation to help realize the expected benefits of cofinancing; and for untied cofinancing, provide cofinanciers with ADB administration and supervision services (for both loans and grants).

Preparatory steps for arranging cofinancing

ADB's role in arranging official loan cofinancing for a project depends on the mode of cofinancing for the project, the wishes of the borrowing DMC, and the policies and capacity of official cofinanciers. ADB may actively solicit cofinancing, provide information on the feasibility and viability of a project, hold consultations with cofinanciers in the field and at headquarters from the early stages of the project processing cycle, and provide administrative services in respect of procurement, disbursement, and other matters as required by cofinanciers if their funds are untied.

How we arrange official cofinancing

ADBs Office of Cofinancing Operations coordinates with official funding agencies during the formulation of the Country Strategy and Program in the DMC, which is the basis for identifying and formulating the projects to be financed by ADB in the DMC during the next three years. This coordination continues during the project processing cycle, and ADB makes every effort to accommodate cofinanciers' processing schedules and procedures. ADB encourages cofinanciers to identify cofinancing opportunities and to contact ADB early in the project processing cycle. In this way, cofinanciers can participate in project formulation and appraisal activities.

Overview
Development effectiveness requires high standards of accountability, transparency, openness, and public participation. As an international development agency dedicated to eliminating poverty in Asia and the Pacific, ADB constantly strives to enhance all of these aspects of its operations. The mechanism 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 be cost-effective, efficient, and complementary to the other supervision, audit, quality control, and evaluation systems at ADB.

The problem solving function, led by the Special Project Facilitator (SPF), focuses on problem solving and finding satisfactory solutions to problems caused by ADB-assisted projects. The compliance review function, composed of the independent Compliance Review Panel (CRP), focuses on ADBs accountability on whether it has or has not complied with its operational policies and procedures that directly, materially, and adversely affect local people. The AM is supported by two separate offices: the Office of the Special Project Facilitator (OSPF) and the Office of the Compliance Review Panel (OCRP). OSPF and OCRP work jointly in conducting outreach activities aimed at making the new AM better known and understood both within and outside ADB. They support the SPF and CRP in carrying out the separate functions of problem solving and compliance review.

ADB remains firmly committed to the principle of being accountable for complying with its operational policies and procedures, and solving problems of project-affected people. Therefore, ADB intends to ensure that the Accountability Mechanism remains adequate and effective in keeping with current international best practices. An effective Accountability Mechanism to address the grievances of people adversely affected by ADB-financed projects and ensure compliance with ADB operational policies and procedures is fundamental to equitable and sustainable development.

Overview
ADB works in partnership with a broad range of civil society organizations to strengthen its efforts to reduce poverty. Working at the grassroots level, CSOs fill a vital space in the development process, giving voice to marginalized communities, providing expertise and knowledge, testing innovative approaches to poverty reduction, and ensuring beneficiary participation in projects.1 ADB cooperates with CSOs to increase the effectiveness, quality, and sustainability of its operations. Over three quarters of ADB projects include some kind of CSO participation from planning and design consultations through the project cycle to project implementation and monitoring.

Increasing ADB efforts with civil society organizations ADB collaborates with CSOs in most sectors of its projects. In some areas such as agriculture, education and urban development there are higher levels of CSO participations. In addition to project-level participation, CSOs routinely contribute to policy dialogue and stakeholder consultations on ADB's country strategies, and thematic and sector policy and strategy reviews. ADB's policies, strategies, and practices have been adapted to embrace and facilitate more active participation of CSOs. Under Strategy 2020, ADB's partnerships with nongovernment organizations (NGOs), community-based organizations, labor unions, and foundations will become even more central to the planning, financing, and implementing of ADB operations.

Making civil society organizations a part of the development process

In 2010, 81% of approved loans, grants, and related technical assistance and 37% of standalone technical assistance approved included some form of CSO participation. Some highlights of civil society participation in ADB operations in 2010 include:

After a two-year decline of civil society participation largely led by the global financial crisis, the incidence of civil society participation in ADB-funded projects has increased to 80%.

For the first time ever, all ADB developing member countries reported civil society participation in their ADB-funded projects. The consultation process of the Public Communications Policy (PCP) review was successful, and for the first time, a multilateral development bank has met with multiple groups of affected people to solicit their input on communications about projects that affect them.

ADB and NGOs collaborated constructively through the Accountability Mechanism in record numbers, discussing and agreeing on how to improve projects when they face problems.

Technical assistance dedicated to increasing civil society participation in ADB operations supported a range of interventions in Southeast Asia throughout the project cycle, starting with country partnership strategy development and continuing through project monitoring.

ADB hosted the annual meeting of the Focal Points of United Nations Agencies and international financial institutions in Manila in October 2010.

Developing country partnership strategies with civil society organizations' help ADB's country partnership strategy (CPS) is the primary planning instrument guiding ADB operations in a member country. The CPS is prepared through consultation with government and other country stakeholders, including the private sector, other development agencies, and civil societies. CSOs wishing to work with ADB should familiarize themselves with the CPS of the country as ADB works directly with governments to provide support for the activities of NGOs and other CSOs.

ADB also works closely with CSOs through the Civil Society Program at ADB Annual Meetings, ongoing dialogue with labor organizations, and outreach on ADB's Accountability Mechanism. _____________________________

1. Civil society refers to groups distinct from the government and the private sector who operate around shared
interests, purposes, and values. Civil society organizations (CSOs) encompass a wide range of organizations, including nongovernment organizations (NGOs); community-based organizations (CBOs); and peoples organizations, mass organizations, professional associations, labor unions, private research institutes and universities, foundations, and social movement

Overview
Fighting fraud and corruption in ADB projects
"Asia is the region where the largest number of poor people live. We have to redouble our efforts to eradicate poverty in Asia, and since corruption and poor governance have been major obstacles in reaching this goal, we also have to redouble our efforts to support anticorruption initiatives and to ensure that governance is substantially improved in our member countries. Many developing member countries recognize that corruption must be avoided and governance must be substantially improved." (Haruhiko Kuroda, ADB President, 2012). The Office of Anticorruption and Integrity (OAI) is the initial point of contact for allegations of integrity violations involving ADB-related activities or ADB staff. Independent since October 2009, OAIs mission is to ensure ADB and its partners maintain the highest ethical and professional standards, and prevent resources intended to improve the lives of the poor from being used to line the pockets of the unscrupulous.

Combating corruption
Developing good governance and fighting corruption are core ADB strategic objectives and are crucial to effective, transparent and accountable aid, to which ADB committed by endorsing the Paris Declaration on Aid Effectiveness. In accordance with ADBs Anticorruption Policy, ADBs zero tolerance to corruption is linked to broader support for governance and improvement in the quality and capacities of developing member countries (DMCs).

In August 1995, ADB became the first multilateral development bank to adopt a policy on governance, and in 1998 approved a comprehensive Anticorruption Policy followed by the Second Governance and Anticorruption Action Plan. In 2006, ADB and other key multilateral development banks (MDBs) adopted the Uniform Framework for Preventing and Combating Fraud and Corruption. In keeping with ADBs Strategy 2020, OAI contributes to ADBs operations in a variety of ways to:

Investigate and prevent fraud, corruption, collusion, coercion or obstruction in ADBrelated activities by conducting independent and objective investigations of alleged integrity violations and presenting findings to the Integrity Oversight Committee (IOC) for possible sanctions.

Advance awareness of ADBs anticorruption policy by organizing training activities for ADB staff and external parties; undertaking outreach initiatives to enhance awareness of the insidious effects of corruption on development; and publishing and disseminating information for a variety of audiences.

Consult and collaborate with other members of the international community, including other multilateral development banks and other international organizations by applying harmonized definitions of integrity violations and prohibited practices and debarring entities that have been sanctioned by one of the participating MDBs.

Investigating complaints
Any party found to have committed a fraudulent or corrupt practice - or any of the other integrity violations identified by ADB - risks being sanctioned as ineligible to participate in ADB-related projects (debarment). To fulfill this role effectively and efficiently, OAI ensures confidentiality and independence in all aspects of its investigative processes. In 2011, OAI received 225 new complaints of integrity violations. Investigations resulted in the debarment of 31 firms and 34 individuals. Investigating allegations of fraud in an education project, OAI found that a consulting firm misrepresented the number of international consultants and submitted a host of falsified documents from boarding passes to time sheets to embezzle money. In another case, key officers who created dummy forms and fake companies were debarred indefinitely for

fraudulent and collusive practices and bid manipulation. To strengthen transparency, OAI shares observations and investigative findings with operational units, management, and development partners at the conclusion of investigations.

Project Procurement-Related Reviews (PPRRs)

In line with ADBs framework of managing for development results, OAI proactively conducts PPRRs, which are reviews of ongoing projects that focus particularly on procurement, financial management and asset verification. PPRRs inspect project outputs, assess internal controls, identify irregularities and possible non-compliance, and make recommendations to mitigate and/or eliminated fraud, corruption, or abuse of resources. PPRRs are always done in close cooperation with the governments concerned, ensuring ownership and proper followup of conclusions and recommendations. OAI also provides support, assistance, and training to operations departments, resident missions, and supreme audit institutions in the countries involved. With techniques to commit fraud and corruption in ADB financed projects becoming increasingly complex and sophisticated, OAI is increasingly pursuing red flags identified in PPRRs.

Knowledge support and awareness-raising

ADB is recognized as a leader among multilateral development banks (MDBs) for its inhouse anti-fraud and corruption initiatives. OAI actively works with other ADB departments to formulate and develop Bank-wide policy and operational measures relating to integrity. OAIs investigative team is also supported by industry-leading IT systems to ensure confidentiality and efficient case management. OAI recognizes that ADB staff form the front line in ADB's fight against corruption and are obligated to uphold the highest professional and ethical standards. OAI organizes knowledge support activities to improve integrity awareness and skills. Since 2010 it is mandatory for all staff to be briefed on the importance of fighting corruption. The Say No to Corruption briefings stress adherence with ADBs Anticorruption Policy from the very beginning of an ADB staff members career. Follow-on refresher courses as well as specialized workshops on fraud and corruption prevention are also conducted.

Partnerships

ADBs member countries and projects span the globe, making it critical in the fight against fraud and corruption that MDBs and international financial institutions form a united front. ADB has actively engaged in global, regional, and national partnerships among governments and institutions to fight corruption and fraud more effectively, such as the ADB/OECD AntiCorruption Initiative for Asia and the Pacific. Following the Harmonized Framework adopted by MDBs in 2006, the Agreement on CrossDebarment was signed by ADB, the World Bank Group, the African Development Bank (AfDB), the Inter-American Development Bank (IADB) and the European Bank for Reconstruction and Development (EBRD) in Luxembourg on 9 April 2010. An important global milestone in the fight against corruption, this Agreement allows that an entity debarred by one of the participating MDBs be subsequently cross-debarred by the other participating MDBs, and constitutes an important step in strengthening global anticorruption efforts. ADB has since notified partner development banks of sanctions imposed on 11 firms and 16 individuals found to have breached anticorruption policies. In turn, ADB cross-debarred 57 entities sanctioned by the World Bank, and four firms sanctioned by EBRD. A new, secure internet portal was also set up to give government officials of ADB's developing member countries access to a full list of sanctioned groups and individuals. "These are serious steps we have taken to help reduce fraud, raise awareness about potential irregularities in project implementation, and to increase understanding of ADB's anticorruption efforts," said Peter E. Pedersen, Head of ADB's Office of Anticorruption and Integrity.

Providing the right development aid is not only about the size of the loan or the number of roads or schools built. It is about knowing the loan is improving peoples lives in a sustainable way. It is about ensuring that the school educates children with skills to support a countrys economic future, or that when a new highway is built, it not only spurs growth and fosters trade but also brings tangible benefits to surrounding communities.

ADB is committed to ensuring that its resources are used to help countries achieve sustainable development and reduce poverty. It does this by focusing on results management in its operations, improving the capacities of its developing member countries, and contributing to the global agenda on aid effectiveness.

International commitments
Along with other development partners, ADB endorsed the Paris Declaration on Aid Effectiveness in 2005 and its follow-up agreement, the Accra Agenda for Action in 2008. They are both founded on five core principles:
1. Country ownership of the development agenda 2. Donor alignment with country priorities and systems 3. Harmonization of donor policies, procedures and practices 4. Managing for development results 5. Mutual accountability

Progress on these agreements will be reviewed at the Fourth High Level Forum on Aid Effectiveness to be held in Busan, Korea from 29 November to 1 December 2011. The international development community will also determine the next phase of the aid effectiveness agenda up to the Millennium Development Goal target date of 2015, and beyond.

Managing for development results

Central to the entire aid effectiveness agenda is managing for development results (MfDR), an approach focused on development outcomes throughout the management cycle. The goal of MfDR is tangible and sustainable development. MfDR promotes informed decision making by integrating a results focus across the four core management functions:
1. planningdefining outcomes and outputs with measurable indicators and time-bound targets, and agreeing on associated activities,

2. budgetingallocating resources to agreed activities, 3. implementing and monitoringimplementing agreed activities and monitoring progress against targets, and 4. evaluatingassessing performance against agreed targets and identifying actions for improvement.

Regular reporting to stakeholders to increase accountability and promote learning is intrinsic to effective MfDR.
MfDR at ADB

focuses on three mutually reinforcing areas:

1. improving support for country capacity in MfDR, 2. infusing a results-driven culture throughout ADB to increase institutional effectiveness, and 3. promoting effective partnerships to advance the regional and global MfDR agenda.

In 2008to put MfDR at the heart of what it doesADB introduced acorporate results framework,a management tool that helps monitor and improve aid delivery. The framework forms the basis of the Development Effectiveness Review, an annual report card that shows where ADB has been successful, where challenges remain and where remedial action is required.

Strengthening member countries

ADB finances a range of projects that provide training and support for planning, budgeting, implementation and monitoring, and evaluation to help strengthen its member countries capacity to manage development and achieve outcomes. include boosting the ability of Afghanistans Central Statistics Office to collect and manage data to better monitor the implementation of aid to providing the Solomon Islands government with technical advice as they implement a new development strategy.
Projects

Transforming ADB's Knowledge Management Agenda

In 2001, through its Long-Term Strategic Framework, 20012015, ADB committed to become a learning institution and a primary source of development knowledge in Asia and the Pacific. Strategy 2020 reinforced this commitment when it underlined knowledge solutions as a driver of change in this decade. In 2004, the Knowledge Management Framework signaled ADB's concerted efforts to become a learning organization. The framework pursues two mutually supportive outcomes: (i) increased assimilation of and dissemination by ADB of relevant, high-quality knowledge to developing member countries and other stakeholders, and (ii) enhanced learning within ADB. In 2008, a review of the Framework recommended quick-wins in various areas. The recommendations led to the approval of the Knowledge Management Action Plan, 20092011, a comprehensive set of actions designed to ensure that ADB's knowledge continues to expand, is practical and usable to its staff and DMCs, and remains of the highest quality. The action plan works toward 4 key results:

a sharpened knowledge focus in its operations empowered communities of practice stronger external knowledge partnerships that produce sustainable outcomes staff equipped with the right skills, knowledge, and drive to pursue ADB's vision

In March 2010, ADB crafted a Knowledge Management Results Framework to operationalize the action plan and monitor its implementation. In quarterly intervals beginning July 2010, ADB tracked the progress of the 37 action points specified in the framework. The Knowledge Management Action Plan 20092011 was completed on 31 July 2011. Of the 37 action points, 70% had been fully adopted, 8% largely adopted, and 16% partially adopted by July 2011, the plan's termination date.

Sharpening the Knowledge Focus in ADB's Operations

ADB leverages its comparative advantagesexpertise in identifying trends in the region; capacity for interdisciplinary and integrated approaches; and ability to blend knowledge and insight with large, concessional financingto generate and share operationally relevant knowledge. At the regional level, the TA Strategic Forum defines a focused and coordinated approach to identifying and organizing regional studies. At the country level, ADB incorporates knowledge management indicators, activities, and resources in the country partnership strategies to ensure that knowledge management processes are effectively mobilized in policy dialogues, and program development and implementation. At the project level, ADB encourages project teams to emphasize knowledge managementrelated considerationsinnovative features of the project, prospects for impact evaluation, avenues for learning, etcwhen developing loan and technical assistance proposals.

Empowering the Communities of Practice

Communities of practice are groups of people who share a passion for something they know how to do and who interact regularly to learn how to do it better. By asking, learning, and sharing, they help manage tacit knowledge. Communities of practice have become the heart and soul of knowledge generation and sharing in ADB. Introduced in 2002 after a bank-wide reorganization, they received a boost when their empowerment was mandated under the Action Plan for Knowledge Management, 20092011.With additional staff positions, increased budget, improved collaboration tools, and continuous efforts to integrate them in ADB's operations, the communities of practice have been able to help formulate country partnership strategies and loan products, deliver customized courses for their members, conduct self-

assessments of their effectiveness, and collaborate with partners in joint research and knowledge sharing.

Strengthening External Knowledge Partnerships

Partnerships and networks can be an invaluable resource for development agencies. ADB established 24 regional knowledge hubs17 on water-related topics and the rest on finance, trade, partnerships, and sustainable development to encourage research and networking on innovative knowledge products and services. With the aim of fostering stronger partnerships, ADB also began incorporating knowledge components in new partnership agreements and built a database of strategic partnerships for use across ADB. It is currently designing a platform to enable bank-wide management and monitoring of knowledge partnerships through decentralized uploading of data and information. In 2011, ADB published the Guidelines for Knowledge Partnerships to inform the upsurge in strategic, sector and thematic, and operations-based alliances resulting from Strategy 2020's call for more effective partnerships.

Further Enhancing Staff Learning and Skills Development

With a boost from both the Knowledge Management Action Plan and Our People Strategy, ADB is paying particular attention to the continuous upgrading of staff skills to meet the evolving needs of developing member countries. Among the new courses developed for staff were short and longer courses under two seriesLearning for Change Primers and Knowledge Management and Learning Seriesto promote awareness of, and action on, knowledge generation and sharing. ADB has also ramped up its efforts to capture, store, and share the tacit knowledge of past and present staff using techniques ranging from storytelling to exit interviews. Concrete products have already resulted from these efforts, among them the introspective ADB: Reflections and Beyond, the ADB Sustainable Development Timeline, and more.

ADB's Knowledge Management Center

The Knowledge Management Center is responsible for coordinating and monitoring all knowledge initiatives within ADB as well as the action plans that constitute it. The Center also undertakes a variety of other tasks designed to develop and nurture ADB's knowledge management and learning environment. For instance, the Center's Knowledge Solutions series attempts to broaden ADB staff's understanding and acceptance of knowledge management and learning. The Center also introduces quick and easy strategies for dealing with knowledge management-related issues, e.g., how to think strategically, manage information overload, zero in on performance, and more. The Knowledge Showcases series, on the other hand, highlights ground-level innovative ideas. Another of the Center's thrusts is to promote knowledge management and learning. Its activities toward this include, among many, enriching the knowledge management and learning webpages, producing and disseminating collaterals, providing advice to other ADB units vis-vis sharing or knowledge harvest, and reaching out to external partners who can serve as knowledge resources for ADB.