i

Learning Curves

OED
January 2008

ADBsLongTermStrategic Framework:Lessons,20012006
TheLongTermStrategicFramework,20012015guidesADBseffortstohelpreducepoverty andimprovelivingconditionsandqualityoflife. WhathastheLongTermStrategicFrameworkcontributedtodate?Whatmorespecificroles shouldADBplayinthefuture?
Background Tofacilitateexecutionofthestrategicrolesthatthe AsianDevelopmentBank(ADB)mustplay,theLong TermStrategicFramework(LTSF)preparedfor2001 2015stipulatesoperatingprinciplesandmodalitiesand marksoutorganizationalandhumanresourceissues.It definesthreecorestrategicareasforADB:sustainable economicgrowth,inclusivesocialdevelopment,and governanceforeffectivepoliciesandinstitutions.It identifiesthreecrosscuttingthemes:promotingprivate sectordevelopment,supportingregionalcooperation andintegration,andaddressingenvironmental sustainability.TheLTSFisimplementedbymedium termstrategies(MTSs),eachlasting5years.TheLTSF builtonADBsPovertyReductionStrategy,aswellas oninternationaldevelopmentgoals,andMTSIand MTSIIalignedwiththesubsequentMillennium DevelopmentGoals.Itstimespanaimedtomeetthe targetdateforaccomplishmentofthelatter. In2007,theOperationsEvaluationDepartment conductedaSpecialEvaluationStudyonLongTerm StrategicFramework:LessonsfromImplementation (20012006) 1 to(i)provideanindependentassessment ofLTSFimplementationunderMTSIandintheearly yearsofMTSII,and(ii)identifylessonsforstrategy formulationandoperations.Focusingon20012006, andexaminingeachstrategicareaandcrosscutting theme,thestudyanalyzedtherelevanceoftheLTSF, ADBsresponsetoitsstrategicguidance,andtheextent towhichADBpositioneditselfforresults. SummaryofFindings Overall,therelevanceoftheLTSFwasratedhigh.
Operations Evaluation Department Asian Development Bank

ADBsresponsivenessandtheinitialresultsachieved weredeemedmedium.Onenotableexceptionwasin theareaofinclusivesocialdevelopment:ADBs responsivenessandresultswerelow.Significantly, theharnessofsustainableeconomicgrowth,inclusive socialdevelopment,andgovernanceleadingtopoverty reductionwasdeemedconceptuallystrongand continuestobeempiricallyvalidinmostdeveloping membercountries(DMCs). Thestudyconfirmedthecontributionofthe crosscuttingthemes:theycomplementthestrategic areasbybroadeninganddeepeningimpact.Their relevancewasratedhigh,whileADBsresponsiveness andtheresultsachievedwerejudgedmedium. TherelevanceoftheLTSFwasfoundhighinterms oftheregionalcontextandtheneedsofDMCs.Its influenceonADBsinstitutionaleffectiveness,interms ofADBsresponsivenessandtheresultsachieved,was deemedmedium.TheLTSFisveryclearthatfocuson strategicareasandcrosscuttingthemescallsforextra financialandhumanresources:thefactthattheyhave notalwaysbeenforthcomingconstrainedLTSF implementation.Lackofaresultsframework, inadequatedatamanagementsystems,andthe existenceofmultiplestrategicdocumentsandtheir weakstrategiclinkwithcorporateplanningand budgetingalsolimitedthepotentialoftheLTSF. ADBsfutureperformancewillbegovernedbythe abilitytoadaptoperationsandinstrumentstorapidly changingcountryneedsnotwithstandingdifferences instagesofdevelopmentandthesectormixneededto meetobjectivesineachDMCandbyhowitenhances theinstitutionaleffectivenessintermsofhuman

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resources,businessprocedures,incentivesystems,and theresultsorientation.Notably,middleincome countriesareevolvingfaster:they,togetherwith graduatedeconomies,demandknowledgeproducts andservices,policyadvice,privatesectordevelopment, environmentalmanagement,andregionalcooperation. Thestudyconcludedthat: TheLTSFmovedthepovertyagendainweakly performingandlowincomecountriesintheregion, buttheneedtoaddressdifferencesbetweenDMCs hasbecomemoreapparent,requiringgreaterfocus onDMCneedsandpriorities. TheoperatingprinciplesspecifiedintheLTSFand inMTSIIchangedfromDMCdrivensector selectivitytoADBdeterminedsectorselectivity, requiringclearerandalternativeapproachesto reconcilingDMCneedsandADBsstrengths. Theneedsandrolesofgraduatingandgraduated (nonborrowing)membercountriesintheregion requireexplicitstrategicattention. SustainableeconomicgrowthhasbeenacoreADB strength,butgreateroperationalclarityisneeded concerningtypesofgrowthandformsofassistance. Publicprivatepartnershipshavebeenarelevantbut underutilizedformofassistancetosupport economicgrowthandsomesocialdevelopment issues. Inclusivesocialdevelopment,asdiscussedinthe LTSF,isrelevantbutthestaffandfinancialresources allocatedhavebeeninsufficienttoaddressthewide scopeofissues. Aclearerandmoreeffectivestrategyforgood governanceisneededtoguideoperations. TheLTSFsthematicareasarerelevantbutwould havebenefitedfromstrategicmainstreamingand betterresourcing. Atthecorporatelevel,havingmultiplestrategicand planningdocumentswithunclearhierarchyand linkscancreateconfusion. Strategicplansandaspirationsneedtoaccompany requiredresources. Corporateplansandbudgetsshoulddefinethe expectedresultschainandamonitoringand evaluationsystem.
Learning Curves available @ www.adb.org/evaluation/

Anintegratedandefficientdatasystemisrequired tofacilitateprogressmonitoringanddecision making. Recommendations Thestudycircumscribedmoreclearlytherolesthat ADBmightplay:(i)financedevelopmentprojects; (ii)providehighqualitypolicyadvice,analyticalwork, andrelatedknowledgeservices;and(iii)catalyzethe mobilizationofresourceswithotherdevelopment partners,theprivatesector,andnewlyemerging bilateraldonors.Totheseends,itinvitedADBto: FocusoneachDMCsbindingdevelopment constraintsandsectorpriorities,followedbysector selectivityinthecountrypartnershipstrategyto createacriticalmassofinterventions. Reducetherangeofhighlevelstrategicdocuments andstatementstoguideoperationsmoreeffectively. Enhancestrategicclaritybyfocusingononesetof strategicdirectionsoveracombinationofsectorand thematicareas. Expandprivatesectoroperationsbybuilding synergiesinpublicandprivatesectoroperations. IncreaseinvestmentinADBshumanresource development,andmanageinstitutionalchange. Provideabetterbalanceintermsofresource allocationandincentivesbetweenproject preparationandimplementation. StrengthenADBscapacitytoprovideknowledge productsandservices. EnhanceADBsdataqualityandinformation managementsystemsandprovideasetof performanceindicatorstomonitorandevaluate progressinachievingstrategicdirectionsandlikely developmentresults. Feedback WhentheseLearningCurveswereprepared,ADB ManagementsResponseandtheChairsSummaryof theDevelopmentEffectivenessCommittee Discussionswerenotavailablefordisclosuretothe public.ThestudywascompletedinDecember2007.
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ADB.2007.SpecialEvaluationStudyonLongTermStrategic Framework:LessonsfromImplementation(20012006).Manila. Available:http://www.adb.org/Documents/SES/REG/SST REG200738/SSTREG200738.pdf

Team Leader: Hemamala Hettige; Tel +63 2 632 4182; hhettige@adb.org