Evaluation Study

Reference Number: SST: REG 2008-18 Special Evaluation Study July 2008

Asian Development Banks Poverty Reduction Technical Assistance Trust Funds: Poverty Reduction Cooperation Fund and Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies

Operations Evaluation Department

ABBREVIATIONS ADB ADF CPS CSP DFID DMC EA EPRS GDP HIV/AIDS IA Lao PDR LGOP LTSF M&E MDG NGO NPRS OED OEM PPA PPTA PRC PRCM PRF PRF-PRC PRS PRSP RETA RMI RSDD SES SOE SSTA TA TASF TCR Asian Development Bank Asian Development Fund country partnership strategy country strategy and program Department for International Development (UK) developing member country executing agency Enhanced Poverty Reduction Strategy gross domestic product human immunodeficiency virus/acquired immunodeficiency syndrome implementing agency Lao Peoples Democratic Republic State Council Leading Group on Poverty Alleviation and Development (Peoples Republic of China) Long-Term Strategic Framework monitoring and evaluation Millennium Development Goal nongovernment organization Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies Operations Evaluation Department Operations Evaluation Mission poverty partnership agreement project preparatory technical assistance Peoples Republic of China Peoples Republic of China Resident Mission Poverty Reduction Cooperation Fund Poverty Reduction Cooperation Fund (Peoples Republic of China Window) (ADBs) Poverty Reduction Strategy Poverty Reduction Strategy Paper regional technical assistance Republic of the Marshall Islands Regional and Sustainable Development Department special evaluation study statement of expenditure small-scale technical assistance technical assistance Technical Assistance Special Fund technical assistance completion report

NOTES (i) (ii)

TA No. PRC 4142 4200 4215 4222 4298 4307 4308 4402 4430

In this report, $ refers to US dollars. List of Field Evaluation Countries, Technical Assistance, and Short Names
TA Name Short Name HIV/AIDS and Yunnan Roads Poverty Studies Safe Drinking Water Poverty Reduction Strategy: Trends Strengthening Planning Forestry Conservation Grassland Improvement Liaoning Heating Microfinance Institutions

4454 County Poverty Monitoring 4580 NGO-Government Partnerships Lao PDR 4009 Social Protection in the Lao PDR: Issues and Options Social Protection 4108 Integrating the Poor in Regional Trade through Standard-Setting for Regional Trade Private Sector Development (Phase 1) 4339 The Extent and Impacts of Gender Inequality in Womens Access to Land, Gender Inequality Forests and Water Resources on Poverty Reduction in Lao PDR 4392 Marketing Support of Organic Produce of Ethnic Minorities Organic Produce 4406 Capacity Building for Smallholder Livestock Systems in Lao PDR Smallholder Livestock 4434 Poverty Reduction through Land Tenure Consolidation, Participatory Land Tenure Natural Resources Management and Local Communities Skills Building 4627 Public Expenditure Planning for National Growth and Poverty Eradication Public Expenditure Strategy (NGPES) Nepal 4353 Promoting Pro-poor and Gender Responsive Service Delivery Project Service Delivery 4754 Education Sector Development I Education Sector 4759 Reaching the Most Disadvantaged Groups in Mainstream Rural Rural Development Development 4760 Enhancing Poverty Reduction Impact of Road Projects Road Project Impact 4774 Economic and Social Inclusions of the Disadvantaged Poor through Micro-irrigation Micro-irrigation and Other Livelihood Enhancement Initiatives 4776 Enabling the Private Sector to Undertake Poverty-Focused Water Water Distribution Distribution in Kathmandu Valley RMI 4653 Increasing Ownership and Effective Demand for Improved Urban Waste Urban Waste Management and Disposal PRC = Peoples Republic of China, HIV/AIDS = human immunodeficiency virus/acquired immunodeficiency syndrome, Lao PDR = Lao Peoples Democratic Republic, NGO = nongovernment organization, RMI = Republic of the Marshall Islands, TA = technical assistance. Notes: (i) Only evaluated TA projects are included in the table. Full lists of stand-alone TA projects can be found in the case-study country reports. (ii) TA projects are referred to by their number and short name, e.g., TA 4009-LAO: Social Protection, for Social Protection in the Lao PDR: Issues and Options (ADB. 2002. Technical Assistance to the Lao Peoples Democratic Republic for Issues and Options: Social Protection. Manila [TA 4009-LAO]). Source: Operations Evaluation Mission.

Fighting Poverty through HIV/AIDS on Road Projects in Yunnan Province Fund for Strategic Policy Conferences and Studies for Poverty Reduction Safe Drinking Water and Sanitation for the Rural Poor Policy Study on Poverty Reduction Strategy: Trends, Challenges and Future Directions Capacity Strengthening of PRCs National Development Planning Process Poverty Reduction in Key Forestry Conservation Programs Poverty Reduction in Grassland Improvement Program Heating Supply for Urban Poor in Liaoning Province Rural Finance Reforms and Development of Microfinance Institutions (Rural Credit Cooperatives Development) Developing a Poverty Monitoring System at a County Level NGO-Government Partnerships in Village-Level Poverty Alleviation

(iii)

List of Evaluated Regional Technical Assistance and Short Names

Short Name Pacific National Poverty Reduction Strategies Pacific Fund

TA No. Countries TA Name 6047 Pacific National Poverty Reduction Strategies in Pacific Developing Member Countries 6061 RMI Pacific Fund for Strategic Poverty Analysis

TA No. Countries TA Name Short Name 6088 LAO, NEP, Strengthening and Collection of Purchasing Power Parity Data Purchasing Power Parity Data PRC in ADB DMCs 6109 LAO, NEP, NGO Partnerships for Poverty Reduction NGO Partnerships RMI, PRC 6120 LAO, NEP Developing a Social Protection Index for Committed Poverty Social Protection Index Reduction 6157 Pacific Strengthening Poverty Analysis and Strategies in the Pacific Poverty Analysis 6171 LAO Reviewing Poverty Impact of Regional Economic Integration in Regional Economic the GMS Integration 6245 RMI Strengthening Pro-poor Policies in the Pacific Pro-poor Policies 6278 NEP Innovative Information and Communication Technology in ICT in Education Education and Its Potential for Reducing Poverty in Asia and the Pacific 6306 NEP Mainstreaming Managing for Development Results in Support Mainstreaming MfDR of Poverty Reduction ADB = Asian Development Bank, PRC = Peoples Republic of China, DMC = developing member country, GMS = Greater Mekong Subregion, ICT = information and communication technology, LAO = Lao Peoples Democratic Republic, MfDR = Managing for Development Results, NEP = Nepal, NGO = nongovernment organization, NPRS = Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies, RMI = Republic of the Marshall Islands, TA = technical assistance. Note: Only evaluated TA projects are included in the table. Full lists of stand-alone TA projects can be found in the case-study country reports. Source: Operations Evaluation Mission.

Key Words adb, aid effectiveness, asian development bank, lao pdr, national poverty reduction strategies, nepal, nprs, operations evaluation study, poverty reduction cooperation fund, peoples republic of china, poverty reduction technical assistance trust funds, prf, marshall islands, trust funds

Director Team leader Team members

R. K. Leonard, Operations Evaluation Division 1, OED K. Hardjanti, Principal Evaluation Specialist, OED A. Anabo, Senior Evaluation Officer, OED C. J. Mongcopa, Assistant Knowledge Management Administrator, OED Operations Evaluation Department, SE-92

CONTENTS Page EXECUTIVE SUMMARY I. II. INTRODUCTION RATIONALE, OBJECTIVES, AND APPROACH OF THE EVALUATION A. Rationale and Objectives B. Approach and Methodology NPRS AND PRF A. Objectives of NPRS and PRF B. NPRS and PRF Processes C. Portfolio D. Current Status of Technical Assistance Programs E. Past Reviews and Evaluations of NPRs and PRF PERFORMANCE ASSESSMENT OF NPRS AND PRF IN CASE-STUDY COUNTRIES A. Performance Assessment of Case-Study Technical Assistance B. Poverty Focus C. Link to ADBs Strategic Objectives D. Link to NPRS and PRF Objectives E ADB Staff Perceptions OVERALL ACHIEVEMENT OF OBJECTIVES AND OUTCOMES OF NPRS AND PRF A. Achievement of NPRS and PRF Objectives B. Outcomes of NPRS and PRF Technical Assistance Projects NPRS AND PRF MANAGEMENT A. Introduction B. Management and Administration C. Demand for Poverty-Related Technical Assistance LESSONS AND ISSUES A. Lessons B. Issues iii 1 3 3 3 4 4 7 8 10 11

III.

IV.

12 12 15 15 17 17

V.

18 18 19 23 23 23 28 28 28 30

VI.

VII.

The guidelines formally adopted by the Operations Evaluation Department (OED) on avoiding conflict of interest in its independent evaluations were observed in the preparation of this report. Director General, OED recused himself from the review and approval of this report and delegated this to Director, OED1 due to his previous deep involvement in all aspects of ADBs operations in the Peoples Republic of China, which is among the developing member countries covered quite substantially in this study. Jonathan Cook (mainly for the country case studies with Liu Xiaoqian, Chandavanh Dethrasavong, and Lava Thapa), and Grace Agnes Sevilla were the consultants. To the knowledge of the management of OED, there were no conflicts of interest of the persons preparing, reviewing, or approving this report.

ii VIII. CONCLUSIONS AND RECOMMENDATIONS A. Conclusions B. Recommendations 32 32 34

APPENDIXES 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Poverty in the Asia and Pacific Region Approach and Methodology of the Study Technical Assistance Project Information NPRS-PRF Portfolio Direct and Indirect Support of NPRS Technical Assistance Projects to National Poverty Reduction Strategy Development Cooperation Fund in Support of the Formulation of National Poverty Reduction Strategies (NPRS) Contribution of NPRS and PRF Technical Assistance to Fund Objectives Outcomes of Completed NPRS and PRF Technical Assistance Country Report for the Peoples Republic of China Country Report for the Lao Peoples Democratic Republic Country Report for Nepal Country Report for the Republic of the Marshall Islands/Pacific Responsiveness of Case-Study Technical Assistance to NPRS and PRF Fund Objectives 35 45 47 52 65 73 79 83 89 104 114 128 135

Attachment:

Management Response DEC Chairs Summary

EXECUTIVE SUMMARY In 1999, the Asian Development Bank (ADB) adopted the overarching goal of poverty reduction, encompassing the reduction of income poverty, the improvement of the quality of life of the poor, and the setting up of mechanisms for the sound management of public affairs in the interests of the poor. To achieve this goal, in 2001 ADB and its development partners began establishing technical assistance (TA) trust funds for poverty reduction. ADBs first two such funds, which are closely linked and have mostly been completed, are (i) the Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies (NPRS), established in November 2001 on behalf of the Ministry for Development Cooperation of the Netherlands; and (ii) the Poverty Reduction Cooperation Fund (PRF), established in July 2002 on behalf of the Department for International Development (DFID) of the United Kingdom. An independent evaluation of the NPRS and PRF against their intended goals and objectives is useful to ADB and its development partners. This special evaluation study (SES) examined the performance of NPRS and PRF operations, including the procedures, management, and administrative support in case-study countries. The case-study countries were selected from different subregions that have received NPRS or PRF support, covering diverse sectors and themes, as follows: (i) Lao Peoples Democratic Republic (Lao PDR) and Nepal, from Group A: Asian Development Fund (ADF) only; (ii) Republic of the Marshall Islands (RMI), from Group B: ADF and ordinary capital resources (OCR); and (iii) Peoples Republic of China (PRC), from Group C: OCR only. A desk study was made of all 106 PRF TA projects (approved from 2002 to 2007) and all 19 NPRS TA projects (approved from 2001 to 2005) to estimate their level of contribution to the achievement of their objectives at the design and completion stages. The outcomes of NPRS and PRF programs were also assessed from all completed NPRS and PRF TA projects with TA completion reports. Therefore, the SES coverage can be considered as representative of the NPRS and PRF support. At the strategic level, the relationship and links to ADBs goal for poverty reduction, as set out in the Enhanced Poverty Reduction Strategy and the Long-Term Strategic Framework, were briefly analyzed. Some lessons derived from the SES are as follows: (i) adequate analysis during design and consultations with executing and implementing agencies on the planned outcomes and the way these can be achieved are essential; (ii) ownership of TA projects by country and other relevant partners is a significant determinant of success; (iii) most TA projects with nongovernment organization (NGO) involvement show strong TA outcomes, suggesting that NGOs can take on stronger roles in poverty reduction efforts; (iv) full delegation of project design and management to ADB by the NPRS and PRF donors was a major positive factor; (v) ADB must provide clearer, user-friendly operational guidance to executing agencies; and (vi) flexibility is needed in project implementation to deal with conditions that are beyond the control of the project management. The following main issues were identified: (i) NPRS and PRF have made a significant contribution to policy and strategy development for poverty reduction, and their closure will leave a significant gap in ADBs assistance to poverty reduction initiatives; (ii) ADBs complex procedures, especially its financial arrangements, tend to delay implementation; (iii) public-private partnerships in support of economic growth and social development are underused; and (iv) ADBs primary focus on loan activities limits the institutional incentives for ADB staff to work on TA projects.

iv The main conclusions of the SES are: (i) NPRS and PRF TA projects evaluated in the country case studies were successful; (ii) both NPRS and PRF programs showed positive outcomes, with a majority of the TA projects demonstrating highly positive outcomes, particularly in policy and strategy formulation, improvement of monitoring and evaluation capacity, mainstreaming of gender into poverty reduction strategies, and environmental management; (iii) TA management from the resident missions has significant benefits but may overburden their limited number of staff unless ADBs financial arrangements and reporting systems are simplified; (iv) key areas for future support relate to the wider application of a number of policies and programs resulting from the NPRS and PRF interventions; (v) like most other TA funds and loan projects, NPRS and PRF TA projects often experience time overruns, although the extensions are marginally shorter on average than those on Japan Special Fund or Technical Assistance Special Fund (TASF) TA projects; and (vi) the new Technical Assistance Disbursement Handbook will be a useful starting point for improvements in the efficiency of disbursements.
The SES recommends the following:

(i)

The closure of NPRS and PRF raises the question of whether a replacement fund is required. It is beyond the scope of this study to make a definitive recommendation. This would entail further analysis by ADB Management and the Regional and Sustainable Development Department, guided by ADBs Strategy 2020 and using the findings of this SES. The analysis should be undertaken before the end of 2008. Given the increasing role of the private sector in ADBs Strategy 2020 and the underutilization of public-private partnerships in ADBs poverty reduction initiatives, ADB and its development partners must work more closely together to enhance partnership with the private sector in this area. Within ADB, the Private Sector Operations Department, the Regional and Sustainable Development Department, and the various regional departments should work out a strategy for this purpose by 2009.

(ii)

R. Keith Leonard Director, Division 1 Operations Evaluation Department

I.

INTRODUCTION

1. The Asia and Pacific region is home to 61% of the worlds population. However, despite being hailed for its remarkable sustained economic growth since the 1990s, the region is also home to about 600 million of the worlds poor. This paradox is evident in the recent emergence of what would seem to be two Asia and Pacific regionsone benefiting from globalization and technological advancements, and the other comprising underdeveloped and fragile economies with populations that are poor and vulnerable. Moreover, in some parts of the region, high rates of population growth are deepening poverty. The challenge is to address the widening inequalities in standards of living and creating economic opportunities among the poor and disadvantaged in the Asia and Pacific region. 2. There are also significant discrepancies in income, social conditions, and access to services between urban and rural areas and between regions within countries. While the dramatic gross domestic product (GDP) growth from 1990 led to a reduction in extreme poverty, it also gave rise to income and non-income inequalities. Poverty in the Asia and Pacific region is described in Appendix 1. 3. The Asian Development Bank (ADB) made poverty reduction its overarching goal in 1999. The Poverty Reduction Strategy (PRS) 1 drawn up that year rested on three pillars pro-poor sustainable economic growth, inclusive social development, and good governance. It addressed income poverty and the need for improvements in the quality of life of the poor, and for the sound management of public affairs to serve their interests. The PRS has had a noticeable influence on ADB and its operations. The Long-Term Strategic Framework (LTSF) 2 for 20012015 foresees a region free of poverty. Its strategic priorities and operational strategies were further refined by the medium-term strategic frameworks, MTS-I (20012005) 3 and MTS-II (20062008). 4 4. In 2001, ADB and its development partners set up technical assistance (TA) trust funds for poverty reduction, as follows: (i) the Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies (NPRS), established in November 2001 on behalf of the Ministry for Development Cooperation of the Netherlands; (ii) the Poverty Reduction Cooperation Fund (PRF), established in July 2002 on behalf of the Department for International Development (DFID) of the United Kingdom; (iii) the Poverty and Environment Fund (PEF), established in July 2003 on behalf of the Ministry of Foreign Affairs of Norway and the Swedish International Development Cooperation Agency (Sida); and (iv) the Peoples Republic of China (PRC) Poverty Reduction and Regional Cooperation Fund, established in March 2005. This special evaluation study (SES) of NPRS and PRF was included in the work program of the Operations Evaluation Department (OED) in response to a strong demand from the fund donors, supported by the Regional and Sustainable Development Department (RSDD). 5. Since the adoption of the PRS, several important developments have taken place including efforts to achieve the Millennium Development Goals (MDGs), harmonization and
1

ADB. 1999. Fighting Poverty in Asia and the Pacific: The Poverty Reduction Strategy. Manila. Available: http://www.adb.org/Documents/Policies/Poverty_Reduction/Poverty_Policy.pdf ADB. 2001. Moving the Poverty Reduction Agenda Forward in Asia and the Pacific: The Long-Term Strategic Framework of the Asian Development Bank (20012015). Manila. Available: http://www.adb.org/documents/Policies/LTSF/ltsf.pdf ADB. 2001. Medium-Term Strategy (20012005). Manila. Available: http://www.adb.org/Documents/Policies/MTS/2001/mts.pdf ADB. 2006. Medium-Term Strategy (20062008). Manila. Available: http://www.adb.org/Documents/Policies/MTS/2006/Medium-Term-Strategy-II.pdf

2 alignment among donors, a new emphasis on managing for development results (MfDR), renewed efforts to reduce poverty in the Asia and Pacific region, and experience gained in the implementation of the PRS. A review of the PRS in 20032004 resulted in the 2004 Enhanced Poverty Reduction Strategy (EPRS), 5 which confirmed the relevance of ADBs basic poverty reduction framework, but emphasized a greater country focus and alignment with each partner countrys national poverty reduction strategy, and partnerships around that strategy. It also called for increased attention to ADBs contribution to development results in partner countries. ADB assesses its progress in implementing the PRS through annual EPRS implementation reports. Strengthening the poverty reduction impact of ADB activities is the main purpose of the LTSF and MTS-II. 6. With the Asia and Pacific region facing significant shifts in economic development, ADB recently adopted a new LTSF 20082020 (Strategy 2020). 6 ADB will pursue its vision and mission through Strategy 2020 and will follow three complementary strategic agendas in its commitment to reduce poverty: (i) inclusive growth, (ii) environmentally sustainable growth, and (iii) regional integration. The new strategic agendas will have five drivers of change: (i) private sector development and private sector operations, (ii) good governance and capacity development, (iii) gender and equity, (iv) knowledge solutions, and (v) partnerships. 7. ADB operations will center on five core specializations that best support its agenda, reflect the needs of its developing member countries (DMCs) and ADBs comparative strengths, and complement the efforts of its development partners: (i) infrastructure, (ii) environment (including climate change), (iii) regional cooperation and integration, (iv) financial sector development, and (v) education. Under Strategy 2020, ADBs operations will have the following operational goals: (i) 80% of operations will be in the new core operational areas by 2012; (ii) private sector development and private sector operations will increase in all operational areas, reaching 50% of annual operations by 2020; (iii) greater support will be provided for environmentally sustainable development, including projects intended to reduce carbon dioxide emissions and to deal with climate change; and (iv) public and private sector operations will progressively increase at the regional and subregional levels to at least 30% of total activities by 2020. 8. As stated in Strategy 2020, there is growing recognition of the private sectors important role in reducing poverty. ADB is therefore accelerating the role of this sector in the economic and social development of the region. Public-private partnerships have been a relevant but underused form of support for economic growth and social development, according to the SES on the implementation of the LTSF (20012006), 7 which recommended that ADB expand its private sector operations by building synergies with its public sector operations. That SES also found potential for greater public-private collaboration toward the achievement of ADBs vision for a poverty-free Asia and Pacific region. Thus, ADBs Strategy 2020 envisages a systematic and progressive increase in ADBs engagement with the private sector over the medium to long term, both in terms of the number of ADB-financed projects and the private sectors share of the total annual level of ADB operations and resource transfers. The 2008 Public-Private Partnership Handbook 8 aims to build knowledge on the public-private partnerships key
5

ADB. 2004. Enhancing the Fight Against Poverty in Asia and the Pacific: The Poverty Reduction Strategy of the Asian Development Bank. Manila. Available: http://www.adb.org/Documents/Policies/Poverty_Reduction/2004/prs2004.pdf). ADB. 2008. Strategy 2020: The Long-Term Strategic Framework of the Asian Development Bank. Manila. Available: http://www.adb.org/Documents/Policies/Strategy2020/Strategy2020.pdf. ADB. 2007. Special Evaluation Study on Long-Term Strategic Framework: Lessons from Implementation (2001 2006). Manila. ADB. 2008. Public-Private Partnership Handbook. Manila.

3 features, structuring, implementation and experience as well as identifies and pinpoints major challenges in engaging the private sector in providing public goods and services. II.
A.

RATIONALE, OBJECTIVES, AND APPROACH OF THE EVALUATION

Rationale and Objectives

9. An independent evaluation of ADBs TA trust funds for poverty reduction against their intended goals and objectives would be valuable to ADB and its development partners. 9 This SES was focused on ADBs first two poverty reduction TA trust fundsNPRS and PRFas they are closely linked and have mostly been completed. Also, unlike the replenished Poverty and Environment Fund and the ongoing PRC Poverty Reduction and Regional Cooperation Fund, full commitment of the NPRS and PRF was achieved in 2005 and no additional proposals have since been submitted or requested. 10. The main objectives of this SES were to (i) assess the funds against their own objectives; (ii) assess the funds contribution to the achievement of ADBs strategic objectives in reducing poverty and their links to those objectives; (iii) assess whether the funds had achieved positive outcomes that contributed to poverty reduction in partner countries and the region; (iv) evaluate the performance of NPRS and PRF through country case studies; and (iv) derive lessons and provide recommendations for future actions.
B. Approach and Methodology

11. The SES employed top-down (deductive) and bottom-up (inductive) approaches, using the criteria included in the country assistance program evaluation (CAPE) guidelines. 10 Both quantitative and qualitative methods of data collection and inquiry were applied through (i) literature and desk review and content analysis of relevant documents, reports, and publications; (ii) key informant interviews and consultations; (iii) available reviews and TA completion reports (TCRs) of the NPRS and PRF; and (iv) case studies of selected partner countries. At the strategic level, the SES briefly analyzed the funds relationship and links to ADBs overarching goal of poverty reduction, as set out in the EPRS and LTSF. It also examined the procedures, management, and administrative support provided to the programs. Appendix 2 gives further details on the methodology of the evaluation study. Appendix 3 contains project information on the NPRS and PRF TA projects and the NPRS-PRF portfolio is shown in Appendix 4. 12. To determine the estimated contribution of the TA projects to the achievement of their objectives at design and completion, the SES conducted a desk study of all 89 stand-alone PRF TA projects implemented in 14 DMCs and 17 PRF-funded RETA projects, and all 16 standalone NPRS TA projects implemented in nine DMCs and three NPRS-funded RETA projects. The SES also reviewed 30 TCRs for completed projects (seven for NPRS and 23 for PRF TA projects) to ascertain whether the NPRS- and PRF-funded TA projects had achieved positive outcomes that contributed to poverty reduction in partner countries and the region. Appendix 5 presents the direct and indirect support of NPRS TA projects to NPRS development. Appendix 6 summarizes the NPRS performance and Appendix 7 presents the contribution of NPRS and
9

Before the evaluation of NPRS and PRF, OED conducted an independent evaluation of the Japan Fund for Poverty Reduction (ADB. 2007. Special Evaluation Study on ADBs Japan Funds: Japan Fund for Poverty Reduction. Manila). 10 ADB. 2006. Guidelines for the Preparation of Country Assistance Program Evaluation Reports. Manila.

4 PRF TAs to Fund Objectives. Outcomes of completed NPRS and PRF TAs are described in Appendix 8. 13. To assess the performance and outcomes of TA projects in individual countries, a case-study approach was adopted, after a desk review of the program, from which a field evaluation program was developed. The countries that were selected for the case studies (i) covered a diverse range of countries from different subregions, (ii) covered diverse sectors or themes, and (iii) had received PRF or NPRS support. Other NPRS- and PRF-supported TA projects were assessed, as far as possible, through desk study. 14. The case-study countries were as follows: (i) Lao Peoples Democratic Republic (Lao PDR) (Southeast Asia Department) and Nepal (South Asia Department), from Group A: Asian Development Fund (ADF) only; (ii) Republic of the Marshall Islands (RMI) (Pacific Department), from Group B: ADF and ordinary capital resources (OCR); and (iii) PRC (East Asia Department), from Group C: OCR only. The case studies were carried out to gather information about NPRS- and PRF-supported TA and regional TA (RETA) projects, quality at entry, implementation stage, practices, and relevant lessons of experience from stakeholders in field operations such as government, development partners, beneficiaries, and ADB staff. 15. Thirty-five TA and RETA projects from the above four countries were evaluated in the field. One RETA project was assessed separately in three countries and another in four, bringing the total of TA assessments to 40 (the main sections of the country case studies are in Appendixes 9 to 12 of this report). Appendix 13 shows the responsiveness of case study TAs to NPRS and PRF Objectives Project stakeholders were interviewed at ADB headquarters in Manila and in-country. The field evaluations were necessarily brief. Full evaluation of the projects in the future may result in some changes in the ratings, particularly for a few partly completed TA projects that have potential for success but have much left to do in their remaining implementation periods. A questionnaire survey was also conducted among mission leaders and project officers of NPRS and PRF TA projects that were selected for case studies to get their views on a number of evaluation factors related to the NPRS/PRF programs. Fifty-one questionnaires were sent out and a response rate of 53% was obtained. III.
A. Objectives of NPRS and PRF

NPRS AND PRF

1.

NPRS

16. The rising proportion of those who are still trapped in poverty in the Asia and Pacific region despite the dramatic pace of economic development has convinced countries of the need to refocus development assistance toward strategies intended to alleviate hardship and inequality. The International Monetary Fund and the World Bank supported the preparation of poverty reduction strategy papers (PRSPs), which were originally associated with the highly indebted poor countries (HIPC) initiative. 11 In the process, it has become apparent that the main elements of the PRSPs are also highly relevant to non-HIPC developing countries. The ADF donors support this initiative and agree that all development partners working in the DMCs should support the preparation of a DMC-led poverty reduction strategy. The donors have
11

To be eligible for debt relief under the HIPC initiative, the governments of these countries had to submit PRSPs to the boards of directors of the International Monetary Fund and the International Bank for Reconstruction and Development.

5 recommended that ADB participate in formulating, revising, and implementing comprehensive national poverty reduction strategies. 17. The NPRS was planned as an umbrella facility for various donors, to help ease the constraints facing many DMC governments in formulating and implementing their national poverty reduction strategies. The Netherlands contributed 15 million Dutch guilders (about $7.9 million as of December 2007) for a period of 3 years. Other donors were not identified, however, and the fund was not expanded. 18. NPRS supports technical assistance for the formulation, implementation, monitoring, and reformulation of national PRSs. These activities can be categorized as follows: (i) institutional development, (ii) participatory process, (iii) training, and (iv) research and methodology development. To be eligible for NPRS assistance, proposals had to (i) focus strongly on national PRS formulation and related policies and strategies, (ii) show evidence of country ownership and the inclusiveness of the proposed approach, (iii) promote sound collaboration with other donors, (iv) not substitute for activities that would otherwise be financed by ADB; and (v) support systemic poverty reduction at the country level. 19. The geographic scope of the NPRS was limited at first to seven DMCs but later expanded to include all ADB DMCs. As of December 2007, 19 projects worth $6.9 million in total had been endorsed for NPRS financing. Six of the TA projects were jointly funded with PRF including three small country TA projects, where around one third of the costs were sourced from NPRS, and three larger regional TA projects with equal resources from the two funds (see Appendix 3). 20. NPRS was aimed at facilitating in-country formulation, prioritization, implementation, monitoring, and reformulation of poverty reduction strategy, and strengthening ADBs role in the process. More specifically, it was intended to help governments to: (i) (ii) (iii) (iv) (v) (vi) formulate national poverty reduction strategies, action plans, and implementation mechanisms; establish monitoring and evaluation (M&E) systems that ensure the broad participation of civil societies and the private sector in every step of the process; establish a conceptual framework for analysis; analyze the impact of public programs (including the public expenditure framework, analyzed in more detail) and public policies on poverty; assess and rate DMC levels of governance; formulate systematic alternative strategies for participatory processes (including stakeholder consultations, participatory poverty assessments, and consultative advocacy); promote the implementation of national poverty reduction strategies through better characterization and selection of relevant projects and programs supporting poverty reduction; coordinate external funding and division of labor on the basis of the national poverty reduction strategies; and strengthen the capacities of government staff and other stakeholders for participatory poverty analysis, strategic prioritizing, and sequencing of development investments.

(vii)

(viii) (ix)

6 2. PRF

21. PRF has two partsa regional window and a PRC window. While both are managed by RSDD, the PRC fund is coordinated by ADBs PRC Resident Mission (PRCM), and approval and reporting are linked directly to DFIDs PRC office in Beijing, whereas the regional window is linked to DFID headquarters in London. PRF is managed jointly with NPRS. a. PRF Regional Window

22. The PRF Regional Window was established in July 2002 as a 30 million (about $56 million as of December 2007) grant facility administered by ADB on behalf of DFID. It supported TA projects and small-scale pilot investment projects with poverty reduction objectives that would serve as examples for broader ADB investments and refocus operations toward greater relevance to poverty reduction activities. In 2005, the PRF began supporting project preparatory technical assistance (PPTA). In view of the projected PRF closing by December 2007, TA proposals were no longer accepted by late 2005. 23. Activities financed by PRF were required to (i) have a strong poverty reduction focus; (ii) support the relevant ADB country partnership strategies (CPSs) and the policies of the government; (iii) be designed to support shared poverty objectives in the current and planned activities of other funding agencies, to enhance effectiveness, avoid duplication, and accelerate learning; (iv) not substitute for activities that would otherwise be financed by ADB (conceptual additionality); (v) make maximum use of local expertise and civil society participation; and (vi) support projects solely based on their poverty reduction merit, with no specific country allocation or country window within the PRF. 24. PRFs goal is to assist ADB in reducing poverty in its DMCs. The PRF was to augment ADBs poverty reduction efforts by (i) assisting in policy dialogue and strategy formulation on poverty reduction; (ii) developing new programs and projects with increased focus on poverty reduction; (iii) monitoring and assessing poverty reduction impact at the project, meso, and macro levels; (iv) launching pilot poverty reduction activities to influence future loan design; (v) involving broader stakeholder consultations at all stages of design and implementation; (vi) strengthening ADBs role as the regional development bank for the Asia and Pacific region to promote poverty reduction; and (vii) performing other activities such as those between DFID and ADB. 25. More specifically, the PRF could support (i) capacity- and institution-building TA projects; (ii) provision of advisory inputs; (iii) thematic and sector work; (iv) monitoring, evaluation, and impact assessment; (v) public conferences, workshops, and other events; (vi) innovative activities such as micro and pilot projects, with clear demonstration effects; and (vi) national experts based in resident missions of ADB, working on poverty analysis and poverty-related gender, stakeholder participation, and governance issues. 26. PRF mainly aimed to support country-based activities, but cross-border activities were permitted as well if they could be shown to have a measurable impact on a countrys poverty situation. Innovative action research, and country- or theme-focused poverty analysis, stakeholder coordination, NGO involvement, pilot activities, and poverty reduction monitoring were to be encouraged. Eighty-eight TA projects have been financed under the PRF Regional Window at a cost of $46 million.

7 b. PRF PRC Window (PRF-PRC)

27. PRF-PRC is a separate component devoted to the financing of PRF activities in the PRC. An initial contribution of 9 million (about $15.0 million as of December 2007) was made by the United Kingdom through DFID in 2003, but this was reduced to 6 million (about $10.6 million as of December 2007) in 2006. 12 A separate PRC component was deemed necessary because even as DFID was financing projects from its bilateral country allocation for the PRC, it was also providing funds through a regional cooperation window for all other eligible countries. 28. PRF-PRC aimed to assist ADB and its ongoing loan and TA programs in reducing poverty in PRC through activities designed to promote innovation and replicability. Impact was expected to be enhanced by (i) addressing in a participatory manner strategic policy issues that affect the poor, and (ii) sharing experience from Asia and strengthening knowledge management of innovative approaches for poverty reduction. The identification and conceptualization of activities financed under the PRF was intended to be directly linked to the PRC CPS. The fund was to support activities that (i) increased the benefits of loan projects accruing to poor communities, groups, and individuals (direct targeting of the poor); (ii) included participatory design, implementation, and M&E to increase the poverty impact of loan projects, as well as partnership building with civil society (capacity building); and (iii) addressed key strategic policy, institutional, and governance constraints on sustainable and systemic poverty reduction (policy dialogue on poverty reduction). Activities supported by PRF-PRC could be up to $1.0 million each. The procedure for approving projects for PRF-PRC financing followed the same general procedure as that for the PRF regional window, with some additional requirements, including integration into ADBs CPS process. Proposals prepared by ADB or the PRC Government needed to be cleared by the PRC Ministry of Finance, DFID, and PRCM. From 2003 to December 2007, 18 TA projects amounting to $9.2 million were financed under the PRF-PRC component. Of this total, $6.8 million had been disbursed by December 2007.
B. NPRS and PRF Processes

29. The NPRS/PRF implementation process is summarized in Figure 1. Discussions with mission leaders and ADB management staff indicated that the process is straightforward and similar enough to other ADB TA projects to present no particular processing issues. Approval is through normal departmental processes. The design and approval process was compared favorably by several staff to those of the (recently evaluated) Japan Fund for Poverty Reduction, which did not use standard TA design and approval processes and involved a number of Japanese agencies in final approval. The interdepartmental peer review meeting was considered useful and a valuable aid in improving design. However, departmental managers in some cases were reluctant to release staff for what was sometimes considered to be a non-core activity. 30. After the approval of the fund in July 2002, an officer from DFID London was seconded half-time to RSDD to assist in getting the PRF established. In early 2003, the officer was appointed as adviser to the director in the United Kingdom but still assisted PRF in getting the peer review meetings going. In the beginning, proposals came not in batches but singly, straight from the project officers, and a peer review meeting was then organized. But final approval had to await the donors decisions at the half-yearly strategy meetings. This approval process was later simplified, and in 2004 DFID withdrew from the proposal selection process and confined itself to retrospective approval of the funding decisions of the peer review meetings.
12

According to the amendment to the Memorandum of Understanding between ADB and DFID dated 20 April 2006.

Figure 1: NPRS/PRF Approval Process

TA Implementation
Operational Division

ADB TA Approval

Operational Division

[Normal TA Processing]

Reporting of the endorsed projects to Government of the Netherlands/DFID

6-Monthly Strategy Meeting (Donors and ADB)

For PRF-PRC: The norm is to include proposals in annual country programming, following the annual meeting between DFID-PRC, MOF, and PRCM

Peer Review Meeting for each proposal

Interdepartmental (organized by Coordinator)

Operational Departments

6-Monthly Concept Paper Preparation assisted by RSPR

Coordinator

ADB = Asian Development Bank, PRC = Peoples Republic of China, DFID = Department for International Development, MOF = Ministry of Finance, PRCM = PRC Resident Mission, RSPR = Poverty Reduction and Social Development Division, TA = technical assistance. Source: PRF website. Available: http://www.adb.org/NPRS/Documents/Chart_NPRS&PRF.pdf

C.

Portfolio

1.

Contributions and Allocations

31. In total, 125 TA projects have been financed by NPRS/PRF. Of these, six were cofinanced by the two funds, 13 fully financed by NPRS, 88 by the PRF regional window, and 18 by PRF-PRC (Table 1). The funds are open to all ADB DMCs. However, Indonesia and India both have separate ADB/DFID funds and were thus not eligible for funding under the PRF regional window. Table 1: Approved Number and Amounts of NPRS/PRF Technical Assistance Projects, by Country ($000)
Country Marshall Islands Maldives Azerbaijan Mongolia Kyrgyz Republic Uzbekistan Afghanistan Tajikistan Bangladesh NPRS Number Amount 1 1 1 1 377 650 300 570 PRF Number Amount 1 300 Total Number Amount 1 300 1 377 1 650 2 550 2 830 2 1,170 2 1,560 3 1,750 4 1,600

1 2 1 2 3 4

250 830 600 1,560 1,750 1,600

PRF Total Number Amount Number Amount Sri Lanka 4 2,300 5 2,650 Nepal 6 2,405 6 2,405 Pakistan 1 32 6 3,024 7 3,055 Lao PDR 1 700 7 2,814 8 3,514 Cambodia 2 112 9 4,054 11 4,165 Viet Nam 2 937 12 5,793 14 6,730 PRC 18 9,275 18 9,275 Subregional 5 2,250 13 8,710 18 10,960 Regional 3 650 17 9,985 20 10,635 Total 19 6,927 106 55,249 125 62,176 PRC = Peoples Republic of China, Lao PDR = Lao Peoples Democratic Republic, NPRS = Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies, PRF = Poverty Reduction Cooperation Fund. Note: The figures may not add up to the totals given because of rounding. Source: Regional and Sustainable Development Department database. Country

NPRS Number Amount 1 350

32. Approvals were concentrated in the 2003 to 2005 period, when 82% of the TA projects were approved. The total value of the approved projects was $62.2 million (Table 2). Detailed information on TA approvals, by fund, year, and sector, is in Appendix 4. Table 2: Yearly Approvals of NPRS, PRF Regional, and PRF-PRC Technical Assistance ($000)
Year Approved by ADB 2001 2002 2003 2004 2005 2006 2007 Total NPRS Number 2 3 5 4 5 Amount 620 612 1,119 1,800 2,777 PRF Regional Number 8 16 25 28 11 88 Amount 2,659 7,367 13,559 15,030 7,360 45,974 PRF-PRC Number Total Amount 620 3,270 11,395 19,059 20,407 7,360 65 62,176

7 5 5 1 18

19

6,927

Amount Number 2 11 2,910 28 3,700 34 2,600 38 11 65 1 9,275 125

ADB = Asian Development Bank, NPRS = Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies, PRF = Poverty Reduction Cooperation Fund, PRFPRC = Poverty Reduction Cooperation Fund (Peoples Republic of China Window). Note: The figures may not add up to the totals given because of rounding. Source: Regional and Sustainable Development Department.

2.

Sector Distribution

33. Table 3 summarizes the sectoral distribution of TA projects. Law, economic management, and public policy received $20.3 million in all, accounting for 33% of all TA approvals, followed by agriculture and natural resources with $10.6 million (17%).

10 Table 3: Approved Number and Amount of Technical Assistance, by Sector ($000)

NPRS PRF Regional PRF-PRC Total Sector No. Amount No. Amount No. Amount No. Amount % Agriculture and Natural Resources 1 150 16 8,795 3 1,700 20 10,645 17 Education 5 2,600 5 2,600 4 Energy 4 2,700 4 1,800 8 4,500 7 Finance 1 700 6 2,500 1 1,000 8 4,200 7 Health, Nutrition, and Social Protection 2 870 11 5,245 1 800 14 6,915 11 Industry and Trade 2 750 2 750 1 Law, Economic Management, and Public Policy 15 5,207 27 13,550 6 1,575 48 20,332 33 Transport and Communications 4 1,650 1 1,000 5 2,650 4 Water Supply, Sanitation, Waste Management 4 1,920 1 400 5 2,320 4 Multisector 9 6,264 1 1,000 10 7,264 12 Total 19 6,927 88 45,974 18 9,275 125 62,176 100
NPRS = Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies, PRF = Poverty Reduction Cooperation Fund, PRF-PRC = Poverty Reduction Cooperation Fund (Peoples Republic of China Window). Source: Regional and Sustainable Development Department.

3.

Support for Resident Missions

34. Three of the TA projects supported resident missions in their poverty reduction activities. These involved the recruitment of a consultant in Cambodia, 13 Pakistan, 14 and Viet Nam. 15 In Cambodia, the TA allowed an extension of a previous TA and the recruited consultant made a useful contribution to the development of ADBs Tonle Sap program. Five other countries were initially planned for inclusion in this program but were unable to provide the additional funds required from their own resources or TA Special Fund (TASF). Funding a poverty expert at the PRCM was also planned, but this proved not to be feasible under PRF. DFID therefore funded the position directly for around 2 years.
D. Current Status of Technical Assistance Programs

35. Approval and disbursement information for the two funds is summarized in Figure 2. As of December 2007, disbursements totaled $42.5 million, or around 68% of the value of approvals of $62.2 million. Only Maldives and Mongolia, both with small programs, had achieved over 90% disbursement. Azerbaijans performance was negatively affected by its late start and the implementation closure of its only (NPRS) TA because of the Governments request for a major change in the TAs scope, which did not meet the funding criteria of the NPRS. Disbursement was also weak in Afghanistan, Lao PDR, Nepal, and Pakistan. The Nepal
13

ADB. 2002. Technical Assistance to the Kingdom of Cambodia for Engagement of a Poverty Consultant at the Cambodia Resident Mission. Manila (approved in October, for $0.128 million, and cofinanced by NPRS and PRF Regional Window). 14 ADB. 2003. Technical Assistance to the Islamic Republic of Pakistan for Supporting Poverty Reduction Initiatives in Pakistan. Manila (approved in December, for $0.148 million, and cofinanced by NPRS, PRF Regional Window, and TASF). 15 ADB. 2003. Technical Assistance to the Socialist Republic of Viet Nam for Support to Poverty Reduction Activities in Viet Nam. Manila (approved in December, for $0.125 million, and cofinanced by NPRS, PRF Regional Window, and TASF).

11 program was adversely affected by conflict, while both the Lao PDR and Nepal programs included a high proportion of pilot-type projects. Viet Nams sizable program under the PRF regional window was only 61% disbursed as of December 2007, a surprisingly low level given the strong ownership of the program in the country. The other country and regional programs were between 60% and 80% disbursed. Among the other larger programs, the strong performance of PRC is notable, as is that of the subregional and interregional programs. The relative strength of all three is probably due to their stronger management and, in the case of the RETA projects, the high percentage of expenditure on international consultants, for whom disbursement is relatively straightforward.
E. Past Reviews and Evaluations of NPRS and PRF

Figure 2: NPRS/PRF Approved Amounts and Disbursements (As of 31 December 2007, in $'000)
RMI Azerbaijan Maldives Mongolia Kyrgyz Rep Uzbekistan Afghanistan Nepal Bangladesh Pakistan Tajikistan Lao PDR Sri Lanka Cambodia Viet Nam PRC Inter-regional Sub-regional 2,000 4,000 6,000 8,000 76% 47% 99% 96% 66% 60% 56% 39% 73% 47% 83% 51% 74% 77% 61% 74% 72% 77% 10,000 12,000 % Disbursed Disbursed Amounts Approved Amounts

36. An independent midterm review 16 of the PRF Regional Window was undertaken in early 2005. The review included discussions with staff at ADB headquarters, review of documents, and 3-day visits to Cambodia and Pakistan. The conclusions about PRF and its implementation were generally positive. A number of useful recommendations were made regarding the direction of the fund and its ability to meet its objectives. Recommendations relevant to the design of a future poverty-related trust fund include (i) increased involvement of resident missions in peer reviews; (ii) provision of flexible funding to resident missions to support upstream dialogue, short-term specialist inputs, brief research activities, rapid response to government requests, consolidation or codification and dissemination of learning and innovation, and the CPS process; (iii) a higher level of scrutiny at the design stage to ensure that TA projects are adequately resourced, that enough time is allocated for learning lessons, that there is a strategy for scaling up the projects from the outset especially where pilot projects are not directly linked to a current or imminent loan, and that there is strong government and ADB manager buy-in; (iv) adequate funding and enough time allowed for capacity-building activities;

PRC = People's Republic of China, Lao PDR = Lao People's Democratic Republic, NPRS = Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies, PRF = Poverty Reduction Cooperation Fund, RMI = Republic of the Marshall Islands. Sources: Technical Assistance Information System; Annual Report of the Cooperaiton Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies (January December 2007); Annual Report of the Poverty Reduction Cooperation Fund (January-December 2007); and Gender, Social Development and Civil Society Division.

16

Phillips, Sue, and David Watson. 2005. Review of the ADB Poverty Reduction Cooperation Fund (PRF) Regional Window. Manila: ADB.

12 (v) more DFID engagement and input at the country level to reinforce the harmonization of country strategies, and inculcate the process of knowledge management throughout ADB; and (vi) merger of NPRS and PRF if the funds are extended. 37. There has been little coverage of NPRS and PRF TA projects in OED country and sector assistance program evaluations, and none at a level that would have assisted significantly in the current evaluation. IV. PERFORMANCE ASSESSMENT OF NPRS AND PRF IN CASE-STUDY COUNTRIES

38. This chapter summarizes the performance of the NPRS and PRF funds in the case-study countries and discusses the key evaluation parameters 17relevance, effectiveness, efficiency, and sustainabilitytogether with some assessment of socioeconomic outcomes. It also assesses the responsiveness of the case-study TA projects to NPRS and PRF objectives. 39. Four country case studies were undertaken and country reports prepared (Appendixes 9-12). Self-assessment questionnaires completed by project staff or consultants were reviewed, and fieldwork and interviews were conducted during operations evaluation missions (OEM). These were used as a basis for rating the projects and thus the overall country programs. In total, 24 country TA projects and 11 RETA projects were assessed. One RETA (TA 6109-REG: NGO Partnerships) was assessed in all four countries and one (TA 6088-REG: Purchasing Power Parity Data) in three. Hence, a total of 40 ratings were undertaken for the 35 TA projects. A. Performance Assessment of Case-Study Technical Assistance

40. Overall, 80% of the NPRS and PRF TA projects evaluated in the country case studies are rated highly successful (25%) or successful (55%). This confirms the ratings from available TCRs (as of December 2007). On the other hand, about 18% were rated partly successful, and 2% unsuccessful (Table 4). Table 4: Country Performance Ratings, by Case-Study Country
CaseStudy Country Lao PDR Nepal PRC RMI/Pacific Total Total 11 11 12 6 40 Highly Successful No. % 2 18 3 27 4 33 1 17 10 25 Successful No. % 5 45 6 54 8 67 3 50 22 55 Partly Successful No. % 3 27 2 18 2 7 33 18 Unsuccessful No. % 1 9

PRC = Peoples Republic of China, Lao PDR = Lao People's Democratic Republic, RMI = Republic of the Marshall Islands. Source: Operations Evaluation Mission estimates.

17

ADB. 2006. Guidelines for Preparing Performance Evaluation Reports for Public Sector Operations. Manila.

13 41. Figure 3 presents the results from Table 4 in graphical format, indicating quite a wide spread from the poorestto the bestperforming countries.

Figure 3: Proportion of TAs by Rating for Case Study Countries 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

42. Of the individual TA projects discussed in Appendix 6 on NPRS, two stand-alone NPRS TA projects (TA 3781-UZB: Improving Living Standards Lao PDR Nepal PRC RMI/Pacific and TA 4644-VIE: Formulating Highly Successful Successful Partly Successful Unsuccessful Sustainable Poverty Reduction Programs) were Lao PDR = Lao Peoples Democratic Republic, PRC = Peoples Republic of China, RMI = Republic of the Marshall Islands, TA = technical assistance. successful. One TA project Source: Operations Evaluation Mission estimates. (TA 4621-AZE: Achieving the MDGs) was not rated, as its implementation was considered closed before completion (Appendix 6). Of the four RETA projects with major NPRS funding that were evaluated, three were successful and one (TA 6120-REG: Social Protection Index) was highly successful. Overall, both funds achieved comparable results and were successful. 1. Relevance 18

43. Overall, the NPRS and PRF programs are rated highly relevant. The relevance of almost all TA projects evaluated was high, except in Lao PDR, where only 3 out of 11 TA projects achieved a highly relevant rating. A number of factors were responsible, among them, (i) a change in ADB strategy by TA completion (TA 4009-LAO: Social Protection), (ii) a problematic institutional environment (TA 4108-LAO: Regional Trade), and (iii) over-ambitious objectives (TA 4627-LAO: Public Expenditure). In the PRC, 9 out of the 11 TA projects evaluated were highly relevant. The rating was lowered to relevant because of (i) a change in the institutional environment by the time of completion for TA 4215-PRC: Safe Drinking Water, and (ii) limited contribution to overall RETA objectives for TA 6109-REG: NGO Partnerships. 2. Effectiveness 19

44. The NPRS and PRF programs are rated effective. Nine TA projects (24%)one each in Lao PDR and RMI, four in Nepal, and three in PRCwere highly effective. Each achieved all or almost all of the objectives set at design or approved during implementation. Eighteen TA projects (45%), including 10 RETA projects and eight stand-alone TA projects (five in the PRC, two in Lao PDR, and one in Nepal), were effective. On the other hand, 11 TA projects (27%) were less effective; these comprised eight stand-alone TA projects and three RETA projects. Only one TA project (TA 4009-LAO: Social Protection) was ineffective in achieving its objectives.
18

Relevance is the consistency of a projects impact and outcome with the governments development strategy, ADBs lending strategy for the country, and ADBs strategic objectives at the time of approval and evaluation, and the adequacy of design. 19 Effectiveness describes the extent to which the outcome specified in the design and monitoring framework, either as agreed on at approval or as subsequently modified, has been achieved.

14 3. Efficiency 20

45. Overall, the NPRS and PRF programs are rated efficient. There is less variation in efficiency than in effectiveness, with 71% of TA projects rated efficient, in terms of implementation and (potential) economic efficiency or cost-effectiveness. Six TA projects (16%) were highly efficient, including three in Nepal (TA 4760-NEP: Road Project Impact, TA 4774NEP: Micro-irrigation, and TA 6120-REG: Social Protection Index), and one in each of the other case-study countries. Box 1 provides details for TA 6120-REG: Social Protection Index. Only one TA project (TA 4339-LAO: Gender Inequality) was deemed inefficient because of its failure to complete the TA combined with severe administrative problems.
Box 1: Efficiency that Leads to Sustainability (TA 4760-NEP: Enhancing Poverty Reduction Impact of Road Projects)a The technical assistance (TA) supported the preparation of guidelines to enhance the poverty reduction impact of road projects in Nepal. It achieved high implementation efficiency through lump-sum contracts with the implementing nongovernment organizations. The sustainability of the project impact is assured, as the interim guidelines developed for road projects are mainstreamed in projects spearheaded by the Department of Roads. Pilot community development and microfinance activities along the 110-kilometer road in the East Region that was upgraded though the TA have been successful. Many of the income-generating activities that began under these microfinance programs may achieve high returns for their owners over time, thus improving livelihoods and, consequently, contributing to the TAs socioeconomic impact in the project area.

____________
The TA was financed by PRF and approved in January 2006 for $0.35 million. It was aimed at (i) enhancing the skills and income generation capacity of wage laborers and poor households, (ii) strengthening the institutional capacity of local nongovernment organizations to serve the poor, and (iii) increasing the capacity of the Department of Roads to enhance the poverty reduction impact of road projects. Sources: ADB. 2006. Technical Assistance to Nepal for Enhancing Poverty Reduction Impact of Road Projects. Manila and Asian Development Bank management information systems.
a

4.

Sustainability 21

46. Sustainability follows a pattern similar to that of TA effectiveness, with 21% highly sustainable and 47% of TA projects rated likely to be sustainable. Four of the PRC TA projects and three in Lao PDR (including two RETA projectsTA 6109-REG: NGO Partnerships and TA 6171-REG: Regional Economic Integration and TA 4406-LAO: Smallholder Livestock) are considered highly sustainable. The sub-TA under TA 6109-REG: NGO Partnerships involved the introduction of life-skills into the primary-school curriculum in one province, where it is reported to have strong support. TA 4406-LAO: Smallholder Livestock will be followed by a loan project, which will begin full implementation in 2008 and should ensure that TA outcomes are sustained. The high rate of sustainability in the PRC is attributed to the strong ownership of TA outputs and outcomes by almost all of the executing and implementing agencies. Four TA projects (11%), including three in Lao PDR (two small-scale TA projects plus TA 4339-LAO: Gender Inequality), are rated unsustainable. The small Truancy Study conducted under TA 6109-REG: NGO Partnerships in RMI is also considered to be less sustainable because of the lack of uptake in national education policy. Overall, the NPRS and PRF programs are rated sustainable.

20

Efficiency describes how economically resources have been converted to results, using the economic internal rate of return or cost-effectiveness of the investment or other indicators as a measure and the resilience to risk of the net benefit flows over time. 21 Sustainability considers the likelihood that human, institutional, financial, and other resources are sufficient to maintain the outcomes over the economic life of the project.

15 5. Socioeconomic Outcomes

47. The socioeconomic impact of TA projects is often not easy to determine, especially when they have just been completed or are almost but not yet completed, as in the case of the NPRS and PRF programs. Therefore, the SES assessed the outcomes of these programs. Overall, the NPRS and PRF programs in the case-study countries have had positive outcomes. This is obvious in the entire PRF-PRC program. 48. TA 4653-RMI: Urban Waste has the potential to improve living conditions on Majuro atoll. Through its contribution to the establishment of the Majuro Atoll Waste Company, which has initiated modern waste handling and marketing practices, the TA has set a solid foundation for the future, given continued funding. This TA project in RMI is also in line with the modified pillars of ADBs PRS for the Pacific, particularly in (i) enhancing the supply of, and demand for, quality basic social services, i.e., sanitation; and (ii) supporting an environment conducive to private sector development. 49. The TA projects in Nepal directly addressed poverty. Several have achieved positive outcomes, notably TA 4760-NEP: Road Project Impact and TA 4774-NEP: Micro-irrigation. The former has made a significant contribution to road policy through the development of guidelines for addressing poverty in road-upgrading projects. In Lao PDR, socioeconomic outcome has been relatively low. However, two of the TA projectsTA 4406-LAO: Smallholder Livestock and a sub-TA under TA 6109-REG: NGO Partnershipshave contributed significantly to poverty reduction. TA 4392-LAO: Organic Produce has experienced a range of problems, but has nonetheless contributed to the expansion of contract farming to 38 villages. In the villages where fieldwork was conducted, this development was considered to be the major basis for improvement in the village economy. B. Poverty Focus

50. NPRS and PRF TA projects can be classified as directly or indirectly addressing poverty or poverty-related policy. Among the four case-study countries, 45% of the TA projects addressed poverty directly and 55% supported poverty-related policy (Table 5). All TA projects had significant direct, short- or longer-term links to poverty reduction. Table 5: Poverty Focus of NPRS and PRF TA Projects in Case-Study Countries
Poverty Focus Directly or indirectly address poverty Directly address poverty-related policy Total Lao PDR 3 8 11 Nepal 9 2 11 PRC 5 7 12 RMI 1 5 6 Total 18 22 40 % 45 55 100

PRC = Peoples Republic of China, Lao PDR = Lao Peoples Democratic Republic, NPRS = Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies, PRF = Poverty Reduction Cooperation Fund, RMI = Republic of the Marshall Islands, TA = technical assistance. Source: Operations Evaluation Mission estimates.

C.

Link to ADBs Strategic Objectives

51. Overall, through their activities, the NPRS and PRF programs have supported the three pillars 22 of ADBs EPRS, particularly in relation to inclusive social development and good
22

ADBs Enhanced Poverty Reduction Strategy of 2004 consists of three pillars, namely: (i) pro-poor, sustainable economic growth (covering interventions that promote labor-utilizing growth, private sector development, infrastructure development, regional cooperation, and environmental sustainability); (ii) inclusive social

16 governance. The SES examined the links between the PRF TA projects and the CPSs in three case-study countriesLao PDR, Nepal, and the PRCand the links to the poverty partnership agreements (PPAs) between ADB and the Governments of Nepal and the PRC. 52. ADBs 20072011 CSP 23 for Lao PDR retains the same core strategies as in the CSP for 20032005. 24 Its operational priorities have widened to some degree to encompass capacity development in all the sectors in which it operates. It includes a focus on gender issues, and covers sustainable environmental management, as well as private sector development and regional integration. The Lao NPRS and PRF programs are well aligned with the CSP, as shown in Appendix 10, Table A10.4 All TA projects coincide with at least one core strategy and one operational priority from the 20032005 CSP and its updates. The stand-alone TA projects were focused on two of the four operational prioritiesrural development and human resource development. 53. The PRF program coincides with three of the five pillars of the PPAs. Strong links are evident, particularly in relation to rural development and womens empowerment. Under ADBs 20052009 25 CSP for Nepal, the stand-alone TA projects again show strong links to all three pillars of the program. Most individual TA projects encourage womens participation in economic activity and community-based organizations. Several RETA projects are reasonably consistent with CPS objectives. TA 6306-REG: Mainstreaming MfDR presents an interesting case. Nepal was included in the RETA partly because among the participating countries it was the most advanced in MfDR and was thus felt to have much to contribute. MfDR is also central to government programs under the Tenth Plan 20032007, and implementation is expected to broaden and deepen under the proposed new 3-year interim development plan. ADB has shown strong support, and is currently launching a successor TA in the sector, which is aligned with ADB strategies as expressed in the CSP (see Appendix 11, Table A11.4). 54. The PRF program in the PRC aligns well with ADBs current CSP 26 and the ADB-PRC PPA as outlined in Appendix 9, Table A9.4. In relation to the PPA, the strongest link is with (i) pro-poor economic growth through infrastructure provision, and (v) pro-poor policy analysis. The main contribution in relation to the PPA is in relation to pro-poor policy analysis, in which 9 of the 12 TA projects have made a significant contribution. In relation to ADBs 20062008 27 CSP update for the PRC, there is good synchronicity with the promotion of equitable and inclusive growth, with nine of the 12 TA projects meeting one or more of the sub-objectives under this criterion. TA 4307-PRC: Forestry Conservation and TA 4308-PRC: Grassland Improvement have a strong environmental focus, and each tried to bring factors minimizing the negative impact of major government programs on the poor into the policy matrix, with varying success.

development (accompanied by programs that boost human capital productivity and participation, gender and development, social protection, as well as social capital and population policies); and (iii) good governance (covering public sector reform, corporate governance, mainstreaming good governance, and partnerships with civil society). 23 ADB. 2006. Country Strategy and Program (20072011): Lao Peoples Democratic Republic. Manila. To emphasize ADBs vision and understanding of the principal nature of its relationship with DMCs, further strengthen country ownership, and enhance their focus on building a partnership to meet medium- and long-term development needs, ADB renamed CSPs as country partnership strategies (CPSs) in August 2006. 24 ADB. 2002. Country Strategy and Program (20032005): Lao Peoples Democratic Republic. Manila. 25 ADB. 2004. Country Strategy and Program (20052009): Nepal. Manila. 26 ADB. 2006. Country Strategy and Program Update (20072008): Peoples Republic of China. Manila. 27 ADB. 2005. Country Strategy and Program Update (20062008): Peoples Republic of China. Manila.

17 D. Link to NPRS and PRF Objectives

55. This subsection draws on the findings of questionnaire surveys conducted among mission leaders and project officers to gain insights into their perceptions on a range of evaluation factors related to the NPRS and PRF programs. 1. NPRS

56. The questionnaire survey was conducted among mission leaders and project officers of 11 NPRS TA projects selected for the case studies. The selected projects represented 58% of the total NPRS TA projects that were approved. A response rate of 64%, or 37% of the total NPRS program, was obtained. Less information on relevance to NPRS objectives is available because of the small number of TA projects evaluated. Nonetheless, the projects for which data are available suggest a good degree of responsiveness to the NPRS objectives (Appendix 13, Table A13.1). A high level of responsiveness to the following objectives was noted: (i) formulation of NPRSs, action plans, and implementation mechanisms (objective 1); (ii) establishment of a conceptual framework for analysis (objective 3); (iii) analysis of impact of public programs and public policies on poverty (objective 4); (iv) promotion of NPRS implementation (objective 7); and (v) strengthening of capacities of staff and other stakeholders (objective 9). Almost no responsiveness to the assessment and rating of DMC levels of governance (objective 5) was noted. In retrospect, this may not have been a relevant objective for the NPRS. 2. PRF

57. A questionnaire survey was also conducted among mission leaders and project officers of 40 PRF TA projects in the PRC, Lao PDR, Nepal, and RMI that were selected for case studies. The selected projects represented 38% of the 106 PRF TA projects that were approved. A response rate of 50%, 19% of the total PRF program, was obtained. The results of the survey indicated that, besides being relevant to ADB and country policies, the PRF program was mostly highly relevant to its objectives. Of the six PRF objectives, the case-study TA projects evaluated were particularly responsive to the following objectives: (i) assistance in policy dialogue and strategy formulation on poverty reduction particularly in the PRC and Nepal (objective 1), and (ii) development of new programs and projects with increased focus on poverty reduction (PRC, Lao PDR, and Nepal) (objective 2) as indicated in Appendix 13, Table A13.2. In this table, the shaded cells indicate moderate to high responsiveness to PRF objectives. Responsiveness to policy development is most pronounced in the PRC, where most of the TA projects have had a positive impact on poverty reduction policy, either directly or indirectly. The expansion of several TA projects has occurred with local funding, and there is good potential for the further expansion of a number of activities with loan or grant funds. The Nepal program is focused on pilot-testing but has also contributed strongly to policy development. E. ADB Staff Perceptions

58. ADB staff generally view the funds in a positive light. Country directors interviewed by the OEM considered the NPRS and PRF a valuable part of their country programs. The responsiveness of the funds, and the potential for rapid TA implementation, was welcomed. However, a lack of close connection to the country program was indicated for Lao PDR, together with some lack of prioritization, selectivity, and focus.

18 59. Also, a number of the ADB staff perceive some of the standard ADB procedures (which are applied across all TA projects) as constraints on effective project implementation. Specifically, they pointed to the requirement to substantiate with documentation in English all expenses undertaken to qualify for payment under TA funds. This requirement becomes particularly burdensome for NPRS or PRF assistance, as this is normally channelled to the grassroots level, where receipts are in small amounts and all documents are submitted in the local language. ADB resident mission staff have had to translate every document, regardless of the amount involved. Another example is the procedure followed in recruiting consulting firms. Where the private sector is needed to assist in the implementation of NPRS- or PRF-assisted projects, the local NGOs are perceived as the most appropriate since they have a better grasp of the project area. However, grassroots NGOs lack the capacity to comply with ADBs requirements for the recruitment of consulting firms, such that recruitment is significantly delayed. All these perceptions point to the need to apply more simplified procedures to NPRFand PRF-type projects. V. OVERALL ACHIEVEMENT OF OBJECTIVES AND OUTCOMES OF NPRS AND PRF

60. Given the limitations posed by the results of the questionnaire survey and in order to assess the overall achievement of NPRS and PRF against their objectives, a desk study of all NPRS and PRF TA projects at their design and completion stages was conducted. The outcomes of all completed NPRS and PRF TA projects as of 31 December 2007 were also assessed. A. Achievement of NPRS and PRF Objectives 1. NPRS

61. All of the 11 stand-alone NPRS TA projects implemented in nine DMCs and eight NPRS-funded RETA projects were assessed to determine their estimated contribution to the objectives of NPRS at the design and completion stages. The results of the analysis (Appendix 7, Table A7.1) indicate that, on average, the TA projects had a high level of contribution to NPRS objectives particularly the following: (i) establishment of M&E systems (objective 2), (ii) establishment of a conceptual framework for analysis (objective 3), (iii) promotion of NPRS implementation (objective 7), and (iv) strengthening of capacities of staff and other stakeholders (objective 9). In a majority of cases (91%), the TA designs were focused on strengthening stakeholder capacity. Besides examining the contribution of the TA projects to the NPRS objectives at the design stage, the SES also assessed seven completed TA projects (four stand-alone TA projects and three RETA projects) to determine whether they had maintained the same levels of contribution to the NPRS objectives up to completion. The completed NPRS TA projects were found to have at least retained their contribution to all the objectives, and to have increased their contribution to six of the nine NPRS objectives (67%), as follows: (i) from 51% to 67% for objective 1; (ii) from 82% to 83% for objective 2; (iii) from 84% to 92% for objective 3; (iv) from 57% to 67% for objective 6; (v) from 72% to 83% for objective 7; and (vi) from 91% to 100% for objective 9 (Appendix 7, Table A7.2). 2. PRF

62. All of the 89 stand-alone PRF TA projects implemented in 14 DMCs and 17 PRF-funded RETA projects were assessed for their estimated contribution to the objectives of PRF at the design and completion stages. The results of the analysis show that, of the six PRF objectives,

19 the TA projects particularly contributed to the following objectives: (i) development of new programs and projects with increased focus on poverty reduction (objective 2); (ii) monitoring and assessment of poverty reduction at the project, meso, and macro levels (objective 3); and (iii) involvement of broader stakeholder consultations at all stages of design and implementation (objective 5) (Appendix 7, Table A7.3). The analyses also show that, on average, the majority (93%) of the PRF TA projects were designed to develop programs and projects related to poverty reduction and that 78% of the TA projects gave particular importance to stakeholder consultations. In addition, 23 completed PRF TA projects were also examined to determine if they had retained their level of contribution to the objectives of PRF from the design stage to TA completion. 63. All TA projects were found to have contributed to the PRF objectives at completion (Appendix 7, Table A7.4), and to have increased their contribution to four of the six objectives (67%), namely: (i) development of new programs and projects with increased focus on poverty reduction (objective 1) (from 93% to 96%); (ii) monitoring and assessment of poverty reduction impact at the project, meso, and macro levels (objective 3) (from 67% to 78%); (iii) involvement of broader stakeholder consultations at all stages of design and implementation (objective 5) (from 78% to 87%); and (iv) strengthening of ADBs role as the regional development bank for Asia and the Pacific to promote poverty reduction (objective 6) (from 36% to 43%). The contribution to these two PRF objectives, however, decreased: (i) assistance in policy dialogue and strategy formulation on poverty reduction (objective 1) (from 66% to 55%); and (ii) launching of pilot poverty reduction activities to influence future loan design (objective 4) (from 16% to 6%).
B. Outcomes of NPRS and PRF Technical Assistance Projects

1.

NPRS

To assess whether the NPRS-funded TA projects had achieved positive outcomes on 64. activities that contributed to poverty reduction in partner countries and the region, the SES examined all (seven) completed TA projects with TCRs as of 31 December 2007 (Appendix 8, Table A8.1). The levels of these outcomes were also rated. The rating values ranged from 0 to 3, with a rating of 3 indicating a high positive outcome, 2 a positive outcome, 1 limited outcome, and 0 no outcome. On average, the NPRS program demonstrated a positive outcome (2.6) with the majority (71%) of the TA projects showing a highly positive outcome, and 14% each showing positive and limited outcomes. The completed NPRS TA projects particularly provided positive outcomes that influenced policy or strategy formulation, the monitoring of progress in achieving the MDGs, the improvement of the M&E capacity of stakeholders, and the mainstreaming of gender into poverty reduction strategies. The following are some NPRS TA projects that achieved highly positive outcomes: (i) TA 3781-UZB: Comprehensive Medium-Term Strategy for Improving the Living Standards of the People of Uzbekistan. 28 This TA project, which gave emphasis to poverty reduction in the Governments agenda, has been highly useful in providing a basis for the development of an interim poverty reduction strategy paper (I-PRSP) with donor support. The capacity of government staff

28

The TA, for $0.57 million, was approved in November 2001 to support the Government in carrying out additional poverty studies and in preparing a comprehensive living standards strategy. The long-term goal of the TA was to reduce poverty in Uzbekistan through the formulation and implementation of a comprehensive medium-term strategy for improving the living standards of the people, particularly the low-income, vulnerable, and socially excluded segments of society.

20 was developed during the TA and is being strengthened further, with help from other donors. Before this TA, no government staff were assigned to work on PRSPs and the poverty reduction profile within the Government was low. The TA triggered the establishment of an interministerial committee and sectoral working groups that continued working on the PRSP document. (ii) TA 4277-PAK: Support for Poverty Reduction Initiatives in Pakistan. 29 This TA provided effective links between public and private institutions for poverty reduction. Research results were shared in various academic forums and proved to be useful in policy dialogue, particularly in the consultations on the Second Poverty Reduction Strategy (PRSP-II, 20062009). The Pakistan Development Forum, which was also supported by this TA, provided an excellent opportunity for ADB staff to engage senior policy makers and other development partners in substantive policy dialogue on poverty and other key issues. The TA consulting team built a good working relationship with the PRSP secretariat and worked very closely with the small team of PRSP staff in what turned out to be an effective learning process for the latter, and helped build capacity for poverty analysis, and M&E. ADB is now regularly consulted by the Government on poverty issues, the MDGs, and social protection. TA 6047-REG: Preparation of National Poverty Reduction Strategies in Pacific Developing Member Countries. 30 This TA helped both the Pacific and ADB to (i) better understand poverty and hardship in the Pacific, (ii) prioritize needs, and (iii) assess possible ways of reducing poverty. Though variable in impact by country, the outputs of the TA have helped to direct the policies and strategies of Pacific DMCs, and ADBs regional and country priorities, strategies, policies, and programs. The output of this TA and that of earlier TA projects (TA 5097-REG, 31 TA 6002-REG, 32 and TA 3667-PNG 33) all had a significant impact in setting the priorities for the new Pacific Strategy for 20052009. The output of this TA also led to the design of TA 6157-REG: Poverty Analysis, another regional TA, managed by the Secretariat of the Pacific Community. TA 6157REG: Poverty Analysis was to continue the same work, with the aim of building both demand for a better understanding of poverty, and policies and strategies for dealing with poverty. At the same time, TA 6157-REG: Poverty Analysis was also aimed at building both regional and national capacities for assessing and formulating required policy and strategy.

(iii)

29

The $0.95 million TA was financed by NPRS and PRF and approved in December 2003. Its aim was to strengthen the capacity of the Government, in particular the poverty reduction strategy secretariat, to monitor and implement the poverty reduction strategy. 30 The $0.5 million TA was approved in September 2002 with the ultimate goal of increasing the impact of national development interventions in the Pacific DMCs. The TA supported increased awareness and capacity building for improved assessment and understanding of poverty, discussion of poverty, formulation of national poverty reduction strategies and their incorporation into national development strategies, finalization of poverty partnerships, establishment of performance indicators related to the poverty reduction MDG, and commitment to the implementation and monitoring of these indicators in selected Pacific DMCs. 31 ADB. 1982. Second Development Bank Staff Training. Manila (approved on 27 May 1982 for $45,000). 32 ADB. 2001. Consultations Workshops on Poverty Reduction Strategies in Selected Pacific Developing Member Countries. Manila (approved on 11 October 2001 for $300,000). 33 ADB. 2001. Poverty Analyses for Socioeconomic Development Strategies. Manila (approved on 6 June 2001 for $650,000).

21 2. PRF

65. To assess whether the TA projects funded by PRF had achieved positive outcomes on activities that contributed to poverty reduction in partner countries and the region, the SES examined all (23) completed TA projects with TCRs as of 31 December 2004 (Appendix 8, Table A8.2). The levels of these outcomes were also rated through the same approach mentioned in para. 64. The assessment concluded that, overall, the PRF program has had a positive outcome (2.5), with the majority (61%) of the TA projects showing a highly positive outcome, 30% with a positive outcome, and 9% with limited outcome. In particular, the TA projects had positive outcomes that influenced policy or strategy formulation; encouraged collaboration with stakeholders; and developed programs relating to gender, capacity building, and environmental management. Some PRF TA projects that have achieved highly positive outcomes are given below. (i) TA 4308-PRC: Poverty Reduction in Grassland Improvement Program. 34 This TA enabled better understanding of poverty in PRCs grassland areas. It represented the first external evaluation of massive grassland programs and succeeded in providing the Government (through the Development Research Center) with a good understanding of poverty in grassland areas, where many of the countrys poor reside. In particular, it identified the impact (in some cases adverse) of these programs on the poor. The Governments concerns related to improvement of environmental management of the grasslands (through its Grassland Improvement Program) as well as the achievement of sustainable rural livelihoods have been addressed through this TA. Moreover, the TA helped the Development Research Center to assess the situation and develop policy proposals for reforms in the Grassland Improvement Program under the 11th Five-Year Program. TA 4680-PRC: Alternative Livelihood Options to Facilitate Coal Sector Restructuring. 35 This TA contributed positively to mitigating the social and environmental impact of coal sector restructuring. Through the TA, an unemployment policy was formulated for Henan province to assist the provincial government in: (a) developing alternative economic activities, and (b) mitigating the social and environmental impact of the closure of small coal mines in a city with decreasing coal reserves. The policy (Administrative Order Number 81, issued in August 2007) had a positive impact on unemployed persons, who were assisted through (a) employment in medium and large enterprises, (b) participation in the national social security scheme, (c) provision of special assistance for vocational training for poor family members, (d) provision of small credit for small business and training, and (e) establishment of business incubators. TA 4303-BAN: Strengthening Capacities for Poverty Monitoring and Evaluation. 36 This TA intervention was timely, as it covered the entire

(ii)

(iii)

34

The TA for $0.4 million was approved in December 2003. Its expected impact was to assist the Government in better understanding the role of the Grassland Improvement Program in poverty reduction. 35 The TA for $0.3 million was approved in November 2005 to assist China National Coal Association in developing and applying a methodology for identifying alternative economic activities for cities that depend on coal mining as their main source of income and have decreasing coal reserves. 36 The TA for $0.35 million was approved in December 2003 to strengthen institutional capacity in monitoring and evaluating national poverty reduction programs and to make government poverty reduction measures more effective. The TA was expected to help the National Poverty Focal Point set up and implement a monitoring and

22 formulation period of the Bangladesh PRSP 20032005 and thus enabled staff to adjust to the evolving needs for M&E in real time. The training and capacitybuilding initiatives of the TA significantly improved the skills of staff at the National Poverty Focal Point (NPFP). (iv) TA 4453-VIE: Supporting the Preparation of the Law on Gender Equality. 37 The TA assisted in the drafting of Viet Nams Law on Gender Equality, which was passed on 29 November 2006 and took effect on 1 July 2007. The law is one of the critical steps toward the achievement of gender equality and is at present the most comprehensive legal document on the subject in the country. It provides a common platform for advocacy and action for gender equality advocates in claiming gender equality. The law enables the building of gender-sensitive legal institutions through particular provisions relating to the incorporation of gender equality in the work of state agencies and organizations. It also provides for the incorporation of gender equality in the development and improvement of legal normative documents and in the work of state agencies. The TA was likewise instrumental in supporting the capacity development of the Central Executive Committee of the Viet Nam Womens Union (VWU) and provincial VWU offices, in the process raising awareness of gender equality and rights in the central government and among the line ministries, provincial governments, and the general public. TA 6109-REG: NGO Partnerships for Poverty Reduction. 38 This TA achieved effective partnerships between NGOs and governments. The small grants to NGOs helped improve thousands of poor peoples lives for a relatively small sum while improving ADBs relations with operational NGOs at the community and national levels. Early links were created between newly established ADB resident missions and NGO and civil society communities, NGO databases in ADBs resident missions were updated and enhanced, and opportunities to engage with NGO and civil society partners on issues of concern to them increased. Positive impact was also noted in building the capacity of NGOs to promote better collaboration with governments. TA 6073-REG: Developing Tools for Assessing the Effectiveness of ADB Operations in Reducing Poverty. 39 The analytical tools were useful in assessing the effectiveness of ADBs poverty reduction interventions. The TA developed four analytical tools that provided mechanisms for policy dialogue, economic analysis, and poverty impact monitoring and assessment at project level. The tools developed were: (a) computable general equilibrium (CGE) models, (b) poverty predictor models (PPMs), (c) poverty predictor pilot surveys (PSs), and (d) a poverty reduction integrated simulation model (PRISM). The

(v)

(vi)

evaluation framework, based on a clear understanding of the NPFPs roles, responsibilities, and relationship with other stakeholders. 37 The TA, for $0.37 million, was approved in November 2004 to assist the Government in reducing poverty and gender inequality through the adoption of a law on gender equality with effective implementation and enforcement mechanisms. 38 The TA, for $1.0 million, was approved in May 2003 to enhance the development of long-term strategic partnerships with NGOs and governments and thus reduce poverty in the Asia and Pacific region. The specific purpose was to provide funding to a limited number of NGOs in group A and B DMCs to undertake innovative poverty reduction or other activities in key ADB sectors as identified through approved country strategy and program documents at the time. 39 The TA, for $0.4 million, was approved in December 2002 to develop several modeling frameworks and analytical tools that could be used to assess the effectiveness of ADB operations in reducing poverty.

23 modelling tools have proved highly useful not only within ADB, especially in the Economic Research Department, but also in DMCs (where they were pilot-tested), as they have provided better information on how policy changes affect the entire economy and the poor. The best route to targeting the poor can therefore be identified in a better way with the help of these tools. VI.
A. Introduction

NPRS AND PRF MANAGEMENT

66. NPRS and PRF Regional Window are managed by an NPRS-PRF secretariat in RSDD under the Gender, Social Development, and Civil Society Division, with PRF-PRC managed out of PRCM (Table 6). Two professional staff, supported by a local staff assistant, have been responsible for the funds almost since their inception. Two consultants (one national and one international) provided support in the administration of the funds. The consultants were hired under a PRF TA (TA 6270-REG: Facilitating Knowledge Management for Pro-Poor Policies and Projects) from 2006 to 2007. ADBs management of the PRF-PRC from PRCM was a response to the decision made by DFID to have the fund managed semi-autonomously at the country level. This arrangement is believed to have facilitated dialogue, coordination, and exchange linked to the PRF-PRC. Table 6: NPRS-PRF Secretariat
Expertise Senior social development specialist (NPRS and PRF regional window coordinator); social sector economist, ADB Resident Mission in PRC (coordinator for PRF-PRC) Local staff (1) Senior operations assistant (handling NPRS and PRF) Consultants (2) Consultant, international (team leader) Consultant, national (analyst) PRC = Peoples Republic of China, NPRS = Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies, PRF = Poverty Reduction Cooperation Fund, PRF-PRC = Poverty Reduction Cooperation Fund (Peoples Republic of China Window). Source: Regional and Sustainable Development Department. Staff Category and No. Professional staff (2)

67. The NPRS-PRF team (i) managed the funds; (ii) coordinated with the governments of the Netherlands and the United Kingdom on technical matters (i.e., reporting on the implementation progress of activities financed by the funds); and (iii) provided support to the operational departments in project processing. The operational departments are responsible for developing, processing, and implementing the individual projects. The Office of Cofinancing Operations (OCO) acts as the official channel of communications between the governments of the Netherlands and the United Kingdom (as well as other possible participating donors) and ADB. OCO also monitors and reports on the financial performance of both funds. B. Management and Administration 1. Design

68. Overall, the design of NPRS and PRF was sound. There were a few cases where the link between output and outcome in the design framework was not clearly defined, for example, in TA 4298-PRC: Strengthening Planning and TA4454-PRC: County Poverty Monitoring. The objectives of the funds were stated in terms that were both broad and specific enough to allow the development of a wide range of relevant TA projects. In the case of NPRS, having a wide range of objectives has not caused significant problems, though it does mean that the level to

24 which the objectives can be achieved varies. This issue was reviewed by the donors in 2005, midway through NPRS and PRF implementation. 40 It was agreed that, instead of trying to narrow the focus of the fund, since demand varied by country, lessons and substantive findings for specific themes (e.g., pro-poor infrastructure) should be extracted in the form of knowledge products. TA 6270-REG: Facilitating Knowledge Management was thus designed and approved in late 2005 for implementation in 20062007. 69. In general, the TA projects designed with funding support from NPRS and PRF were relevant. Some were complex, with several objectives (at the purpose [outcome] level). Others had capacity-building objectives that were not backed by enough resources or time for their achievement. A lack of understanding of ADB processes and the needs of the TA projects at the start led the donors to seek rapid disbursement after approval. Many short-term TA projects, particularly those approved late in the program (because of pressure to close the funds), might not be completed by fund closure, thus limiting the achievement of the planned objectives and raising issues about the handling of the remaining funds. 2. Approval

70. Approval processes are summarized in Figure 1. The results of the peer review meetings were presented to the half-yearly strategy meetings for donor approval. However, later in the program, donor involvement was reduced, with purely retrospective endorsement at the meetings. Thus, no approval was required outside normal ADB TA approval processes. The full delegation of approval to ADB has helped to simplify and fast-track approval. Within the ADB system, projects were at first approved in batches every 6 months, but were later approved individually to shorten the average approval period and reduce the time pressure caused by the imminent closure of the funds. NPRS and PRF TA processing has been relatively efficient. Analysis undertaken in 2004 (footnote 40) indicated that NPRS and PRF TA processing time was shorter than that for ADB advisory TA projects. However, efficient processing was often followed by slow start-up and disbursement, as discussed in other sections of this study. 3. Implementation

71. Implementation procedures follow those for normal advisory TA projects, as covered by ADB guidelines in the Project Administration Instructions. Implementation could follow a number of pathways. The main modes of implementation, in approximate descending order of frequency, were implementation by (i) government executing or implementing agency, (ii) local or international NGO(s), (iii) ADB headquarters staff (common for RETA projects), and (iv) commercial companies. All these modes have proved successful in most cases. 72. Problems affecting implementation include delays and the consequent need for TA extension. While in some cases these were caused by overoptimistic estimates of the time requirements of the TA projects (and, in some later TA projects, the need to close the funds by December 2007), in others they were caused by funding delays. 73. The TA reform paper 41 noted that improvements in TA implementation depend on actions to be taken at various levels within ADB, from the TA team leader (who directly supervises the TA) to ADBs operational management (which is largely responsible for creating
40

ADB. 2004. Issues Paper on the Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies and the Poverty Reduction Cooperation Fund. Manila (working paper for discussion at the fourth strategy meeting for NPRS/PRF). 41 ADB. 2008. Increasing the Impact of the Asian Development Banks Technical Assistance Program. Manila.

25 the necessary conditions for improved TA supervision). Success will ultimately depend on (i) the ability of the Office of Information Systems and Technology (OIST) to make the required information systems available, and (ii) the allocation of enough budgetary and human resources through the ADB budget. The SES supports these conclusions. 74. A good example of public-private partnership in ADBs support for poverty reduction TA was shown by TA 4580-PRC: NGO-Government Partnerships, financed under PRF-PRC. During its implementation a Singapore-based enterprise, RGM International, agreed to provide roughly $80,000 to support the capacity-building activities of selected NGOs, in what is believed to be the first example of a corporate parallel cofinancing contribution to any ADB TA in the PRC. 4. Management

75. The management of the funds by RSDD and PRCM was sound. Using the experience gained, management (both ADBs and the donors) has been proactive in improving fund efficiency. The donors have shown flexibility in approving recommended changes. Three positive aspects stand out: (i) the peer review process, which appears to have added significant value in relation to TA design quality, but which sometimes also added to the design complexity; (ii) the half-yearly donor meetings, which have been beneficial in relation to information exchange, policy development, and decision making; and (iii) the strong efforts made to disseminate knowledge and lessons from the programs, particularly through TA 6270-REG: Facilitating Knowledge Management. 76. As provided for in the Channel Financing Agreement between ADB and the Netherlands Ministry for Development Cooperation, and in the Memorandum of Understanding between ADB and the Government of the United Kingdom, ADB charges a 5% service fee on the actual trust fund contribution from the donors. Part of this fee is used to finance NPRS and PRF administration costs, specifically consulting services for project design, editing of non-TA-specific work, etc., and fact-finding and review missions as needed. A significantly smaller portion of the 5% service charge is allocated to direct NPRS and PRF administration costs than to general overhead costs. This lopsided allocation was one of the concerns raised in the review of ADB-DFID cooperation since 2005. 42 77. The resident missions have added value to the overall management of NPRS and PRF TA projects, since closer proximity to government has helped create ownership and allowed closer monitoring. Sustainability of the TA intervention is essential; efforts were therefore made to build a mechanism within the government system. For instance, under TA 4760-NEP: Road Project Impact, interim guidelines produced to enhance the poverty reduction impact of road projects helped ensure the assessment of the poverty reduction potential of every road sector investment and the formulation of a suitable strategy. 78. From 2000 to 2005, TA trust funds increased from less than 10% of TA financing to nearly 40% (footnote 41). Although the management of the trust funds is coordinated, the donors different guidelines and procedures could complicate access to the funds. To overcome this problem, the TA reform paper (footnote 41) proposed harmonizing the guidelines for the trust funds so that staff preparing projects could follow a common approach, and synergy, alignment, and optimal use of donors financing and ADBs administrative resources would be ensured.
42

Payne, Julian H. 2007. Review of ADB-DFID Cooperation since 2005. Draft final report. Searep Limited, 7 September.

26 79. From the experience of ongoing trust funds, the TA reform paper (footnote 41) has compiled a list of best practices, including the following: (i) trust funds should have a minimum size threshold; (ii) multiple donors should be encouraged to support a thematic fund; (iii) within agreed parameters and subject to periodic ex-post review, approval for funding of specific projects should be delegated to ADB; (iv) concept clearance documents should be standardized, with additional space for fund-specific information, and ADBs standard format should be reviewed and improved but kept uniform for all funds; and (v) ADB should assess, with OED and concerned donors, whether standard post-evaluation procedures could apply to the evaluation of the various funds, with a possible additional evaluation covered by the fund at the end of the planning cycle. 5. Supervision, Monitoring, and Evaluation

80. Stand-alone TA projects were supervised mainly from ADB headquarters, though some country programs include several TA projects managed by resident mission staff. Around half of the PRF-PRC TA projects were supervised by PRCM staff. The majority of the RETA projects were managed from headquarters. The turnover of ADB staff, due mainly to staff movements within ADB, often poses a problem in this regard as a hiatus in supervision, and possibly an initial lack of ownership, is created while new staff familiarize themselves with the TA. OEDs SES on TA Performance 43 noted that the project officer had changed during the implementation of 52% of advisory TA projects, in many cases with little or no formal handover. ADB headquarters staff generally undertake field reviews of their TA projects every 6 months or once a year. TA projects managed from the resident missions, in contrast, receive a significantly higher level of field supervision. 81. TA projects are monitored through normal TA processes, with the preparation of TA performance reports, which should be updated monthly. The extent to which these are useful documents varies with the motivation of the mission leader and the analysts who complete most of these reports. Despite the efforts of the NPRS and PRF secretariat in RSDD and PRCM (for PRF-PRC), timely information on TA projects has been difficult to obtain, limiting the ability of the secretariat to monitor and manage the program. 82. Most TA projects include some level of built-in M&E. However, in practice few achieve a high level of M&E. The M&E components are either delayed or deprived of resources, which are transferred to other components thought to be of higher priority. Some M&E programs, however, operate at a high level, including those for TA 4142-PRC: HIV/AIDS and Yunnan Roads (Box 2) and TA 4580-PRC: NGO Government Partnerships. Both of these generated useful data, which will assist in the expansion or replication of the TA activities. The M&E for TA 4142, according to OEM, was one of the best-designed and best-implemented performance management systems of any ADB loan or TA project, a remarkable achievement for a small TA. Key attributes of the M&E systems for both TA projects were: (i) close involvement with TA management; (ii) formulation of constructive recommendations after the baseline survey, many of which were adopted; (iii) use of a control population; (iv) consistency between the baseline and midterm surveys; and (v) good presentation of results.

43

ADB. 2007. Special Evaluation Study of Technical Assistance Performance. Manila. Appendix 8, para. 116.

27

Box 2: Effective Collaboration with Local Government and Community (TA 4142-PRC: Preventing HIV/AIDS on Road Projects in Yunnan Province)a
The technical assistance (TA) supported the implementation of a prevention program against HIV/AIDS and sexually transmitted infections (STIs) in Yunnan province to help reduce the potential social risks associated with the Western Yunnan Roads Development Project (included in the 20032005 Country Strategy and Program for the Peoples Republic of China). The first of its kind in this area, the TA demonstrated strong involvement from the local government and community participation in its design and implementation, which created clear and effective ownership of the TA. HIV/AIDS information was disseminated and risky behavior was reduced. The HIV/AIDS education campaign of the Government also had a convincing effect on HIV prevention in the locality. The TA, in alignment with the Government's HIV/AIDS response efforts, proved effective in contributing to the reduction of the incidence of HIV/AIDS and STIs. This TA is a good example of a successful initiative that links social issues with infrastructure projects, taking into account the importance of aligning with local conditions, thus creating ownership.
a

The TA for $0.8 million and financed by PRF-PRC was approved in July 2003 with the aim of (i) increasing awareness of HIV/AIDS and STIs among local communities, road contractors, and road transport business communities; (ii) bringing about behavioral changes among construction workers, commercial sex workers, and local communities; (iii) increasing knowledge of safe sex practices and use of condoms; (iv) providing HIV/AIDS and STI prevention services at the contractors worksites and within the resident communities; and (v) improving HIV/AIDS and STI monitoring (including epidemiological surveillance). Sources: ADB. 2003. Technical Assistance to the Peoples Republic of China for Preventing HIV/AIDS on Road Projects in Yunnan Province. Manila; Asian Development Bank management information systems.

83. Financial monitoring was through the normal ADB system, which provides quarterly information on contracts, fund distribution, and disbursements. Overall disbursement monitoring and projection is done by RSDD on the basis of the quarterly financial statements prepared by the Controllers Department. OCO reports on financial performance to the Government of the Netherlands and DFID but has no other significant involvement in NPRS or PRF management. 84. The NPRS-PRF Secretariat in RSDD has made substantial efforts to learn lessons from the NPRS and PRF programs, particularly under TA6270-REG: Facilitating Knowledge Management for Pro-Poor Policies and Projects. Under this TA numerous short and longer studies of TA projects in Cambodia, PRC, Lao PDR, and Viet Nam were undertaken. These studies have been valuable in identifying the strengths of the TA projects reviewed and disseminating lessons. An NPRS and PRF knowledge management framework and a knowledge dissemination plan were also drafted under the TA. In addition, a range of on-demand advisory and financial support services was provided to NPRS and PRF project officers and in-country stakeholders. The midterm evaluation of PRF provided useful suggestions on fund implementation. The NPRS-PRF Secretariat also publishes a newsletter (Poverty Matters), 44 which is useful for information sharing, and publishes articles on ADB Today. 6. Completion

85. Of the 125 45 NPRS and PRF TA projects, 60 (50.4%) had been completed by the end of 2007, around 50 of which were financially complete. As the funds were set to close in December 2007, timely TA completion is evidently a significant problem for the funds. A number of extensions have been approved by the implementing departments, several without the prior knowledge of RSDD. Approval has nonetheless been granted retrospectively, with most TA

44 45

Available: http://www.adb.org/Documents/Periodicals/NPRS-PRF/default.asp?p=prf Including six TA projects cofinanced by NPRS and PRF.

28 projects now required to be physically complete by April 2008 and financially complete by the end of June. Extensions beyond these deadlines have been approved for a few TA projects. 86. Mission leaders are responsible for preparing TA completion reports within 6 months to 1 year of the physical completion of a TA project. Because of the difficulties experienced in completing many TA projects, few completion reports have been prepareda total of 28 by the end of December 2007. While many mission leaders are able to prepare TCRs on time, some find it difficult to meet the 6-month deadline. In other cases, TCRs are prepared but not submitted to the NPRS-PRF Secretariat in RSDD, highlighting the difficulty faced by the unit in coordinating the funds. Changes in project officers account for additional delays. The quality of TCRs is variable, but most provide useful summaries of the TA projects. Others could be more analytical and thus relevant to the development of the knowledge bank relating to the poverty reduction trust funds.
C. Demand for Poverty-Related Technical Assistance

87. OEDs evaluation of the Japan Fund for Poverty Reduction took place midway through its implementation, making it possible to assess the demand for this mode of assistance on the basis of the number of projects waiting to be financed. This was not the case with the evaluation of the poverty reduction TA trust funds, specifically NPRS and PRF, which was conducted after these programs had stopped accepting new proposals. Therefore, there is no objective measure of the level of demand for poverty-related TA projects for NPRS- and PRF-type support. However, interviews with project staff and country directors indicated the usefulness of NPRS and PRF TA projects for the types of projects funded. Before a decision is made to establish a new fund, an objective assessment of demand, for example, through a survey of potential users and ADB staff, would be desirable. 88. A number of factors suggest the need for a poverty fund. These include (i) the continued focus of ADBs Strategy 2020 on reducing poverty in Asia and the Pacific, (ii) the challenge posed by the widening inequality and persisting pockets of poverty in Asia and the Pacific and the demand for such additional funding; (iii) the support provided by poverty reduction TA projects to ADB loans at the grassroots level and their contribution to poverty reduction policy development; (iv) the prospect of further enhancing ADBs image as a development institution in addressing regional hard-core poverty; (v) the appreciation of partner countries and beneficiaries of TA projects with a poverty focus; and (vi) ADBs ability to tackle poverty on multiple fronts and sectors. VII.
A. Lessons

LESSONS AND ISSUES

89. Adequate analysis during design and consultations with executing agencies and implementing agencies on the planned outcomes and how these can be achieved are essential. TA 4627-LAO: Public Expenditure was intended to develop and implement fiscal and expenditure frameworks but in practice was limited to the development of models. Major benefits of the TA, in assisting with the drafting of the new budget law and establishing fiscal transfer monitoring systems, were not among the TA objectives. TA 4434-LAO: Land Tenure involved three linked projects and associated World Food Programme activities, complicating implementation and contributing to the eventual withdrawal of the implementing NGO. Several PRF projects in Nepal had quite complex institutional arrangements, which complicated and in

29 some cases constrained implementation (TA 4353-NEP: Service Delivery, TA 4759-NEP: Rural Development, and TA 4774-NEP: Micro-irrigation). 90. The NPRS and PRF TA projects pilot-tested innovative approaches to inclusive development and poverty reduction, which required capacity, preparedness, and institutional environment in executing agencies. The majority of the constraints encountered were clearly linked to institutional capacity (staff, financial management and reporting, etc.). These aspects need to be carefully assessed at the TA preparation stage. 91. Ownership of TA projects by country partners and other relevant partners is a significant determinant of success. Outcomes, impact, and sustainability require strong ownership and must not be donor-driven. Examples related to ownership are given below. (i) Ownership was shown by almost all executing and implementing agencies for the PRF-PRC TA projects, notably the following: (a) TA 4142-PRC: HIV/AIDS and Yunnan Roads, which demonstrated strong ownership at prefecture or grassroots and provincial levels; and (b) TA 4307-PRC: Forestry Conservation, for which the State Forestry Administration had strong ownership of the project and its outputs. Recognizing that 10 (originally 6) counties were insufficient for national policy development, the number of case-study counties was expanded to 15, with a local budget allocation of CNY2.0 million. Highly positive outcomes were demonstrated by NPRS and PRF TA projects that were demand-driven (Appendix 8, Tables A8.1 and A8.2). Also, the effectiveness of government staff increased when they themselves sought to promote a new and improved technology package (TA 4406-LAO: Smallholder Livestock). Lack of ownership by the executing agency was a problem facing TA 4392-LAO: Organic Produce. Greater ownership by the Government might have reduced the registration problems faced by the implementing company, and might even have helped to identify the marketing conflicts that had arisen in the fair-trade handicrafts component.

(ii)

(iii)

92. Where NGOs were involved, TA outcomes were mostly achieved, suggesting that NGOs can take on stronger roles in future poverty alleviation efforts. Below are some lessons derived from partnering with NGOs. (i) NGOs with the right type of expertise and background have been effective as partners for the NPRS and PRF programs. TA implementation through NGOs can be highly cost-effective, with infrastructure development costing around half the amount spent on similar government schemes (e.g., water supply schemes under TA 6109-REG: NGO Partnerships in Nepal). NGOs working with the local government can also be effective, as TA 4580-PRC: NGO Government Partnerships showed. Government criticisms of high overhead costs are likely to be due to the inclusion of all relevant salary, overhead, and management costs under the NGO contracts. Under government budgets these are covered separately. NGOs (particularly international), consultants, and regional organizations have been able to continue implementation during periods when reimbursement is delayed (e.g., TA 4406-LAO: Smallholder Livestock and TA 4774-NEP: Micro-irrigation). Project consultants under TA 4760-NEP: Road Project Impact noted that the affiliation of NGOs with a microfinance institution ensured regular

(ii)

30 fund flow, constant monitoring and supervision, and project sustainability, as these processes were built into the microfinance services. (iii) However, significant problems were experienced in TA projects that were initially implemented by a faith-based NGO (TA 4434-LAO: Land Tenure) and by an advocacy NGO (a sub-TA in Nepal under TA 6109-REG: NGO Partnerships). Careful consideration is required when recruiting NGOs from either category because of the risk of conflict with governments or with ADB policies.

93. A number of lessons can be drawn from the management and administration of NPRS and PRF TA projects: (i) According to ADB mission leaders and some country directors, NPRS and PRF TA projects are straightforward in design, implementation, management, and supervision, compared with some other trust funds managed by ADB. They follow normal TA processes, which are familiar to all staff. The full delegation of design and management to ADB by the NPRS and PRF donors (the governments of the Netherlands and the United Kingdom) is considered another major positive factor. ADB must provide clearer, user-friendly operational guidance to executing agencies. Clear work plans defining proposed fund use, together with documented discussions on ADBs liquidation requirements, are necessary as these requirements often vary from those of other international partners of the executing agencies. TA mission leaders should ensure that implementing agency staff are familiar with the relevant ADB systems by the start of the project. When new staff, NGOs, or consultants are appointed, they need to be familiarized with the procedures. The new Handbook on TA Disbursement 46 should improve liquidation efficiency. Flexibility is required to ensure that project implementation is not hindered by conditions beyond the control of the project management. For example TA 4759-NEP: Rural Development could not liquidate the required 70% of its first advance payment because of conflict-related problems in two of its four districts, jeopardizing the entire project. Also, changes in scope during implementation without corresponding changes in resources can cause difficulties, as TA 4406-LAO: Smallholder Livestock showed. The TA projects in Nepal that experienced no damaging delays were those where either (i) most contracts were lump-sum contracts (TA 4760-NEP: Road Project Impact), or (ii) NGOs or consulting companies used their own resources to meet funding deficits and keep the project moving (TA 4774-NEP: Micro-irrigation). For many TA projects, however, neither solution is feasible. The second option is undesirable, as it uses the scarce working capital resources of the implementing agency.

(ii)

(iii)

(iv)

(v)

B.

Issues

94. The NPRS and PRF programs have made a significant contribution to policy and strategy development for poverty reduction in country partners and the region. The closure of

46

ADB. 2008. Technical Assistance Disbursement Handbook. Manila.

31 NPRS and PRF will leave a gap for replication and up-scaling of ADBs assistance to poverty reduction initiatives in the region that these funds have successfully started. 95. The development partners have their own sets of systems and procedures that may have similarities but may vary in complexity. ADBs relatively more complex procedures (especially with regard to financial arrangements, as mentioned in preceding paragraphs) tend to prolong implementation. In particular, where fund management is fully delegated to ADB, the development partners must know and understand ADB systems and the nature of reporting they require at the time of the trust fund design. ADBs TA reform paper (footnote 41) proposed harmonizing the guidelines for the trust funds administered by ADB, to ensure synergy, alignment, and optimal use of donors financing and ADBs administrative resources. 96. Like other funding sources, NPRS and PRF TA projects often allow advance payments, though some implementing agencies seem to be unaware of this. Under this system, ADB provides a proportion of the TA funds to the implementing agency so that implementation can begin or activities (such as a workshop) can be carried out. While in principle this arrangement is meant to speed up implementation, in practice it has often been cumbersome, and has been a significant problem for perhaps half of the TA projects evaluated in the field for this SES. Having to approve statements of expenditures (SOEs) before they are transmitted to ADB headquarters is an onerous task for resident mission staff, notably in Nepal (see Box 3 as an example), where a single staff member spends several days and many hours of unpaid overtime per week on this activity to keep up with demand. The system has been particularly problematic for three of the four case-study countries (PRC, Lao PDR, and Nepal), where every single receipt has to be translated into English. This requirement and the complex financial arrangements often pose severe difficulties for TA projects implemented in several remote locations and involving different agencies.
Box 3: Complex Financial Arrangements May Hamper Implementation and Limit Impact (TA 4353-NEP: Promoting Pro-poor and Gender Responsive Service Delivery Project)a The technical assistance (TA) was designed to be implemented jointly with Loan 2071-NEP: Community Livestock Development Project (CLDP). Partly because of the complex financial arrangements and difficulties encountered in collecting financial statements from the districts and local nongovernment organizations (NGOs), the liquidation of advance payments was considerably delayed. Disbursement was complicated by the flow of funds through accounts held in several banks; the remote location of many TA implementation sites, which made it difficult to assemble receipts and forward them to Kathmandu; the large number of small-value receipts or the difficulty of obtaining receipts for some items; the requirement to translate the receipts into English; and the processing of requests for liquidation and advances by both ADBs Nepal Resident Mission and Controllers Department at ADB headquarters. The accumulated delays in funding TA activities seriously undercut the TA objective of pilot-testing quick impact activities for very poor and marginalized households and undermined the social mobilization activities of the partner NGOs as well as the trust and goodwill of members of community-based organizations. ADBs current fund flow and advance payments liquidation procedures need to be simplified to facilitate TA implementation.
a

The TA for $0.2 million from the PRF Regional Window was approved in July 2004 to (i) improve the income and livelihood of poor rural households through quick-impact homestead livestock and crop enterprises; (ii) improve the institutional capacity of NGOs and community-based organizations; (iii) strengthen central and district government agencies and local bodies; and (iv) establish an identified approach that effectively promotes the participation of the poor and disadvantaged in local development by systematically mainstreaming gender. Sources: ADB. 2004. Technical Assistance to Nepal for Promoting Pro-poor and Gender Responsive Service Delivery Project. Manila; Asian Development Bank management information systems.

32 97. The NPRS and PRF TAs pilot-tested innovative approaches to inclusive development and poverty reduction required capacity, preparedness, and institutional environment in executing agencies. The majority of constraints encountered during implementation were clearly linked to institutional capacity, such as staff, financial management and reporting. However, these aspects were not carefully assessed during TA preparation. 98. ADBs primary focus on loan-related activities has limited the institutional incentives for ADB staff at resident missions to conduct intensive management of the TA projects. However, this problem appears to be common to all trust funds. 99. A strong and dynamic private sector, in alignment with the country system, is a necessary condition for sustained poverty reduction. The private sector can participate in physical and social infrastructure development, including the provision of basic services that will benefit the poor. As an engine of growth it can also create jobs that contribute to poverty reduction efforts. However, as stated in the SES on the Long-Term Strategic Framework (footnote 7), public-private partnerships have been underused in economic growth and social development initiatives. Other alternative sources of funds for poverty reduction need to be tapped, and the private sector presents itself as a potential partner. 100. Reports need to be completed and published quickly if they are to remain relevant and achieve maximum impact. Publication delays have been a problem for a number of policy oriented TA projects. VIII.
A. Conclusions

CONCLUSIONS AND RECOMMENDATIONS

101. The NPRS and PRF TA projects have achieved their objectives, and some have reached beyond the objectives set at the design stage. 102. The overall rating for the NPRS and PRF TA projects evaluated in the country case studies is successful. Twenty-five percent of the TA projects were highly successful, 55% successful, 18% partly successful, and 2% unsuccessful. 103. On average, the NPRS program has had a positive outcome (rated 2.6 out of a maximum of 3.0), with the majority (71%) of the TA projects having a highly positive outcome. The completed NPRS-funded TA projects in particular have had positive outcomes that influenced policy and strategy formulation, the monitoring of progress in achieving the MDGs, improvements in the M&E capacity of stakeholders, and the mainstreaming of gender into poverty reduction strategies. 104. Overall, the PRF program has showed a positive outcome (rated 2.5 out of a maximum of 3.0). For the majority (61%) of the PRF-funded TA projects the outcome has been highly positive. In particular, the completed TA projects have had positive outcomes that influenced policy and strategy formulation; encouraged collaboration with stakeholders; and developed programs relating to gender, capacity building, and environmental management. 105. There are significant benefits to managing TA projects from the resident missions, particularly relating to supervision cost and intensity, and the general level of support that can be provided to implementing agencies. However, unless ADBs financial arrangements and

33 reporting systems are simplified, they may impose an additional burden on the limited number of staff in the resident missions, who are already overburdened. 106. Key areas for future support relate to the expansion of a number of policies and programs resulting from the NPRS and PRF TA interventions. 107. With regard to RETA projects, the sector divisions need to keep the resident missions informed about ADBs interventions in the country to avoid duplicating efforts or worse, working at cross purposes. 108. In general, the management and implementation systems used were appropriate to the needs of the NPRS and PRF TA projects. An issue that stands out, however, is the delayed flow of funds. While such delays are commonly experienced during TA implementation, they may have affected the NPRS and PRF programs more severely, mainly because implementation is mostly done by local government agencies and NGOs unfamiliar with ADB systems and the donors requirement for timely disbursements. 109. As in most other TA fund and loan projects, time overruns were frequent. Some projects made overoptimistic assumptions about implementation capacity and did not allocate enough time for TA implementation. Conflict situations (Nepal) or natural disasters (Sri Lanka) and implementation problems such as interagency coordination difficulties or remote project sites slowed down the implementation process. Nevertheless, the NPRS and PRF TA projects required marginally shorter extensions on average than Japan Special Fund or TASF TA projects. 47 110. A number of factors suggest the need for a poverty fund, as mentioned in para. 88. However, further review and analysis by ADB Management and RSDD in line with ADBs Strategy 2020 and the TA reform agenda should determine whether a new fund would be useful. In case such a fund is needed, the following should be considered: (i) (ii) A new fund should be a genuine multi-donor fund with a potentially indefinite life, for as long as donors are prepared to continue contributing to the fund. Donors could be allowed to flag individual projects. For example, DFID is seeking to restrict its support to around seven Asian countries and will focus on environmental issues (climate change). However, other donors will not have limits or might have different preferences. The administration of a multi-donor fund with flagging can admittedly pose some problems. ADB systems would have to be reviewed to determine their ability to cope (e.g., with maintaining sub-accounts for each donor) without undue stress. The fund could also allow flexibility beyond the standard TA mode of assistance. Capacity development and partnerships with regional institutions require a longer-term engagement. Perhaps these activities can be designed as multistage interventions to help overcome this problem. Specific country budgetary allocations under NPRS and PRF and their desirability have come under considerable discussion but have been disapproved in favor of

(iii)

(iv)

47

The average planned implementation period for stand-alone TA projects was 1.7 years, and the average extension period was 10.5 months (66%). The planned period for RETA projects averaged 1.6 years, and the overrun period, 12.5 months (92%). The recent SES on ADBs Japan Funds (2007), on the other hand, found that the average completion overrun was 12 months for Japan Special Fund advisory TA projects and 14.5 months for TA Special Fund advisory TA projects.

34 demand-driven programming. In principle, the same flexible approach should be continued in any future fund. (v) Further integration of poverty fund programs into CPSs may be desirable, and could help link them to country and overall ADB strategies. However, such alignment should not come at the expense of accessibility. Allowance should be made for rapid response in emergency circumstances or opening windows of opportunity.

111. Ultimately, the establishment of such a fund will depend on supply by potential donors and demand from partner countries. Supply by the donors will depend largely on (i) their strategic interests in the Asia and Pacific region; and (ii) how well ADB can meet these interests, in the donors view. The NPRS and PRF experience will be useful in making this decision. 112. The new Handbook on TA Disbursements (footnote 46) will be a useful starting point in improving the efficiency of disbursement. It should be translated into the local languages and promoted widely. The disbursement systems could be streamlined, for example, by (i) requiring basic translation and itemization in SOEs only for items beyond an agreed cutoff cost; and (ii) subjecting SOEs to spot audits to reduce the risk of misconduct.
B. Recommendations

113. The closure of NPRS and PRF raises the question of whether a replacement fund is required. It is beyond the scope of this study to make a definitive recommendation. This would entail further analysis by ADB Management and the Regional and Sustainable Development Department, guided by ADBs Strategy 2020 and using the findings of this SES. The analysis should be undertaken before the end of 2008. 114. Given the increasing role of the private sector 48 in Strategy 2020 and the current underutilization of public-private partnerships in ADBs poverty reduction initiatives, ADB with its development partners must work more closely together to enhance partnership with the private sector in this area. Within ADB, the Private Sector Department, RSDD, and the various regional departments should work out a strategy for this purpose by 2009.

48

During the implementation of TA 4580-PRC: NGO-Government Partnerships financed under PRF-PRC, a Singapore based enterprise, RGM International, provided roughly $80,000 to support capacity building of selected NGOs, which is believed to be the first example of a corporate parallel co-financing contribution to any ADB TA in PRC.

Appendix 1

35

POVERTY IN THE ASIA AND PACIFIC REGION

A. Poverty in the Asia and Pacific Region

1. The Asia and Pacific region is home to 61% of the worlds population. However, despite being hailed for its remarkable sustained economic growth since the 1990s, it is also home to about 600 million of the worlds poor. This paradox is evident in the two Asia and Pacific regions that have emerged in recent historyone that has benefited from globalization and technological advancements, and another comprising underdeveloped and fragile economies with populations that are poor and vulnerable. High rates of population growth also contribute to the incidence of poverty in the region. The challenge is addressing the widening inequalities in standards of living and creating economic opportunities among the poor and disadvantaged population of Asia and the Pacific. 2. As noted above, there is increasing concern over the disparate growth of economies in the region. Recent data show that the average growth of per capita gross domestic product 1 (GDP) grew by an average of 9.1% in East Asia from 1990 to 2005, 3.8% in South Asia, and 3.2% in South East Asia. This rapid growth translated into a reduction in extreme poverty 2 levels. According to the World Bank, 3 According to the World Bank, extreme poverty in Asia and the Pacific declined from 34.6% in 1990 to 18.0% in 2005 (Table A1.1). However, when measured against the $2-per-day head-count index, the decline in poverty incidence in the region declined from 75.0% to 51.9% over the same periodThe decline in the total number of extremely poor people from 945 million in 1990 to a little over 600 million in 2005 is largely attributed to the achievements of the Peoples Republic of China (PRC) and Viet Nam. 4 With the exception of Pakistan and Sri Lanka, the incidence of extreme poverty in South Asia is still significant. Table A1.1: Decline of Poverty Incidence in the Asia and Pacific Region, 19902005 Region East Asia South Asia Southeast Asia Total Regions Poverty Headcount Ratio, $1-a-Day 1990 2005 % Decline 32.5 7.1 25.4 42.4 31.9 10.5 23.8 7.2 16.6 34.6 18.0 16.6 Poverty Headcount Ratio, $2-a-Day 1990 2005 % Decline 71.5 29.4 42.1 85.8 76.9 8.9 65.6 43.2 22.4 75.0 51.9 23.1

Sources: World Bank Povcalnet database, and Ali, Ifzal, and Juzhong Zhuang. 2007. Inclusive Growth toward a Prosperous Asia: Policy Implications. ERD Working Paper No. 97. Manila: ADB.

3. On the other hand, poverty incidence in fragile states (such as those in the Pacific) remains high as key constraints on growth and development in these island states include limited opportunities for employment, inadequate access to health care and education, the remoteness of some islands from centers of economic activity, and limitations on access to land and other resources. These economies are generally small, slow-growing, poorly diversified,
1 2

In constant 2000 dollar terms. Extreme poverty is a condition wherein people cannot meet their basic needs for survival. People in extreme poverty live on less than $1 per day. The data used here are based on the World Banks Povcalnet database. The World Banks poverty measures are based on an international poverty line of $1 a day and $32.74 a month at 1993 purchasing power parity. A poverty line set at $2 a day is often used and is more representative of what poverty means in middle-income countries. Ali, Ifzal, and Juzhong Zhuang. 2007. Inclusive Growth toward a Prosperous Asia: Policy Implications. ERD Working Paper No. 97. Manila: ADB.

36

Appendix 1

politically volatile, and heavily aid-dependent. 5 Another challenge to the Pacific islands is the impact of global warming and natural disasters. It is estimated that while fragile states contain only 14% of the worlds population, they contain nearly a third of the worlds poor people. 6 Estimates of the size and nature of poverty in the Pacific are constrained by the lack of a common definition of poverty (i.e., what might be relative poverty in one country might be relative affluence in another), the lack of statistics, and in some cases the reluctance of some governments to acknowledge the existence of poverty and hardship in their countries. The Human Poverty Index 7 of the United Nations Development Programme (UNDP) provides an indication of the level of deprivation in the region. A more recent estimate 8 of poverty incidence in the Pacific revealed that half of the population in Kiribati is poor, while 40% of Vanuatus population, and close to 40% of the population of Papua New Guinea and Timor-Leste, is poor. On the other hand, over a quarter of the population of the Fiji Islands, Federated States of Micronesia, and Tuvalu is poor. A little over 20% of the people living in the Republic of the Marshall Islands (RMI), Samoa, and Tonga are poor, while 12% of the population of the Cook Islands is living in poverty. 4. A recent update 9 indicates that the Asia and Pacific region has achieved many of the Millennium Development Goals (MDGs). Most countries have succeeded in realizing some goals, but none are on track to achieve all of them (Table A1.2). In fact, a number of countries are likely to miss many of the MDGs. According to the report, the region as a whole is on the way to reaching the target of halving extreme poverty, with the PRC leading the way. Asia and the Pacific also accounts for around 65% of the world's underweight children. A number of countries in South Asia and South East Asia are advancing too slowly toward the goal of reducing the number of underweight children under the age of five. Nevertheless, most countries are on track in terms of enrolment of school-age children (but South Asias achievement without Indias significant contribution is quite low). 5. The region is likewise successful in achieving gender parity at primary and secondary levels, and many more children are surviving beyond their fifth birthday, but the rate for the Asia and Pacific region as a whole is still around 60 deaths per thousand live births. Progress has also been noted in the fight against HIV/AIDS in the region. However, around six million people are still living with HIV/AIDS (over two million in India alone). Malaria remains a problem in many parts of the region, as Asia accounts for around 38% of the people affected worldwide, with the highest number of cases reported in the Pacific. Another concern is the prevalence of tuberculosis (TB). Although a decline has been noted in the prevalence of TB and TB-related deaths, two out of three people affected by TB live in the Asia and Pacific region and around 925,000 deaths are recorded each year. Environmental sustainability is also becoming a concern, both in terms of the deterioration of the natural environment and access (or lack of it) to clean water and sanitation. In fact, the Asia and Pacific region accounts for 75% of the

8 9

Graham, Benjamin. 2007. Challenges for Growth and Poverty Reduction in Fragile States. Paper presented to the ADB Forum on Inclusive Growth and Poverty Reduction in the New Asia and the Pacific, 89 October, Manila. Department for International Development. 2005. Why We Need to Work More Effectively in Fragile States. London. The Human Poverty Index is a measure of deprivation using the following variables: (i) longevity (as measured by the percentage of the population expected to die before the age of 40, (ii) knowledge (as measured by the percentage of adults who are illiterate), and (iii) overall economic provisioning (measured by the percentage of people without access to health services, the percentage of people without access to safe water, and the percentage of underweight children below the age of five). ADB. 2004. Hardship and Poverty in the Pacific. Manila. ESCAP/ADB/UNDP. 2007. The Millennium Development Goals: Progress in Asia and the Pacific 2007. Bangkok. Available: http://www.mdgasiapacific.org

Appendix 1

37

worlds rural population and 63% of the world's urban population that do not have access to safe sanitation (footnote 9). Table A1.2: Country Groups On- and Off-Track for the MDGs
1 Underweight Children 2 3 4 MDG Goal 6 ODP CFC Consumption 7

Primary Completion

Gender, Secondary

Primary Enrollment

Reaching Grade 5

Under -5 Mortality

Sanitation, Urban

Gender, Primary

Gender Tertiary

HIV Prevalence

CO2 Emissions

$1/day Poverty

Protected Area

TB Death Rate

Infant Mortality

TB Prevalence

Forest Cover

Region

Asia and Pacific Excluding PRC and India Southeast Asia South Asia Excluding India Pacific Islands CIS in Asia LDCs in Asia and Pacific Early achiever; On track; Slow; No progress/Regressing CFC = chlorofluorocarbon, PRC = Peoples Republic of China, CIS = Commonwealth of Independent States, CO2 = carbon dioxide, HIV = human immunodeficiency virus, LDC = least-developed country, MDG = Millennium Development Goal, ODP = ozone-depleting potential, TB = tuberculosis. Source: ESCAP/ADB/UNDP. 2007. The Millennium Development Goals: Progress in Asia and the Pacific 2007. Bangkok.

6. According to the Asian Development Banks (ADBs) recent analysis (footnote 4) of 14 of its developing member countries (DMCs), 10 a more pressing issue that developing Asia has had to contend with is the rapidly rising inequality among the populace, which dampens the impact of poverty reduction initiatives. Inequality, as measured by the Gini coefficient, 11 increased between 1990 and 20022005 in almost all countries (Table A1.3). Inequalities in access to education and health care, in addition to income inequalities, are also pervasive issues for developing Asia. Although these results do not present particularly high levels of inequality when compared with the results for Latin American and sub-Saharan African countries (where Gini coefficients of 50 or higher are common), inequality in the Asian region remains a concern. On the other hand, Gini coefficients for selected 12 Pacific countries (Table A1.4) are also better than those for Latin American countries (except for Papua New Guinea) but are slightly worse than those for developing Asia.

10

Bangladesh, Cambodia, PRC, India, Indonesia, Lao PDR, Malaysia, Mongolia, Nepal, Pakistan, Philippines, Sri Lanka, Thailand, and Viet Nam. 11 The Gini coefficient is a statistical measure (ratio) of income equality ranging from 0 to 1, where 0 indicates perfect equality (i.e., all people have equal shares of income) and 1 indicates perfect inequality (i.e., one person has all the income and the rest have none). 12 Not all Pacific developing member countries have available data for Gini coefficients.

Sanitation, Rural

Water, Urban

Water, Rural

38

Appendix 1

Table A1.3: Recent Trends in Income/Expenditure Inequality in Asia, Gini Coefficients (%)
Economy Bangladesh Cambodia PRC India Indonesia Lao PDR Malaysia Mongolia Nepal Pakistan Philippines Sri Lanka Thailand Viet Nam Gini Coefficient Initial Year Final Year 28.3 1991 34.1 2005 31.8 1993 40.7 2004 40.7 1993 45.5 2004 32.9 1993 36.2 2004 34.4 1993 34.3 2002 30.4 1992 34.7 2002 41.2 1993 40.3 2004 33.2 1995 32.8 2002 37.7 1995 47.3 2003 30.3 1992 31.2 2004 42.9 1994 44.0 2003 34.4 1995 40.2 2002 46.2 1992 42.0 2002 34.9 1993 37.1 2004

PRC = Peoples Republic of China, Lao PDR = Lao People's Democratic Republic. Source: Ali, Ifzal, and Juzhong Zhuang. 2007. Inclusive Growth toward a Prosperous Asia: Policy Implications. ERD Working Paper No. 97. Manila: Asian Development Bank.

Table A1.4: Inequality in Selected Pacific Countries, Gini Coefficients (%)

Economy Fiji Islands Micronesia, Federated States of Papua New Guinea Samoa Timor-Leste Tonga Gini Coefficient 49.0 40.8 50.9 44.0 35.4 42.0 Latest Year Available 1990 1998 1996 2002 2001 2001

Source: Asian Development Bank. 2006. Key Indicators. Manila.

7. There are also significant spatial differences, in terms of discrepancies in income, social conditions, and access to services, between the urban and rural populations and between regions within countries. Almost all countries in the Asia and Pacific region have major regions with urban and rural areas that are growing more slowly than others. While the regions dramatic GDP growth from 1990 to 2005 brought about a reduction in extreme poverty among the population, it also gave rise to income and non-income inequalities, which, if not addressed, present the risk of further trapping individuals in poverty. B. Poverty in Case-Study Countries 1. Poverty in the PRC

8. The PRC has achieved significant success in its fight against poverty. Its economic reforms, coupled with targeted government programs, have contributed to sustained economic growth, which has reduced the number of rural absolute poor (using national poverty line data), from 31% of the rural population in 1978 to below 3% in 2006. In fact, the PRC is ahead of

Appendix 1

39

schedule in achieving most of the MDGs, as it has already more than achieved the target of halving poverty from the 1990 level. 9. According to published data, rural absolute poverty (income per capita in 2006 of less than CNY693/year) has declined to 21.5 million, or about 2.5% of the rural population (defined by hukouhousehold registration) from around 85 million in 1990. The officially defined low-income population (living on income per capita of less than CNY958/year in 2006) comprises an estimated additional 35.5 million persons. The population below the international standard of $1 per day (using the purchasing power parity exchange rate) fell from 375 million (33%) in 1990 to 105 million (8%) in 2006. Conventional estimates of the purchasing power parity exchange rate would put the absolute poverty line at around $0.70 per day. Work on purchasing power parity in the region under the PRF-funded TA 6088-REG: Purchasing Power Parity Data is potentially relevant in this regard. Several agencies have been recently charged with reassessing the PRCs rural poverty line, and redefinition is likely in the near future. The PRC does not have an official national urban poverty line, but cities have adopted minimum living standards to help the poor. 10. Despite the progress achieved in alleviating poverty, however, the task of eradicating the remaining pockets of poverty, particularly in rural areas, remains a challenge for the Government. The World Bank estimated that about 93% of the PRCs poor who live on $1 a day are in the rural areas. Aside from this, the PRC also faces the challenge of dealing with non-income poverty (e.g., for those who have no access to education, health care, or basic nutrition). Thus, more focused and innovative approaches are needed to work on (i) persistent absolute poverty, increasingly concentrated in hard-to-reach groups (e.g., remote communities and the elderly and disabled); (ii) the vulnerability of a large population living on the brink of poverty, e.g., to illness or natural disasters; and (iii) new symptoms of urban poverty. Wider issues relate to urban/rural and coastal/inland imbalances, with income gaps widening and a rapidly less equitable distribution of income, reflected in a steady rise in the Gini ratio from 0.34 to 0.47 between 1995 and 2005. 11. The PRCs poverty strategy, embodied in the Chinese Rural Poverty Alleviation and Development Outline (20012010), prioritized people living in remote and mountainous areas and areas of severe poverty. Geographic targeting is used to address inadequate infrastructure, environmental problems, weaknesses in the enabling environment for the private sector, and weak human resources. Programs to address poverty in urban areas include social security reform, income and job generation, control of urban pollution, and creation of off-farm employment opportunities. These efforts are continued in the Governments 11th Five-Year Plan with a focus on targeting social harmony, balanced and people-centered development, and the Governments rural development drive to create a new countryside. 12. ADB aims to continue to work with the Government in promoting pro-poor and inclusive growth. This is reflected in the 20072008 Country Strategy and Program Update (CSPU), 13 which focuses on rebalancing development between rural and urban areas and among regions. The priorities set in ADBs Medium-Term Strategy II are in line with the Governments 11th Five-Year Plan. Specifically, ADBs strategy will prioritize: (i) catalyzing investment to improve the investment climate and expand private sector operations; (ii) strengthening inclusiveness by increasing investment to support rural development and social development interventions; (iii) promoting regional cooperation and integration; (iv) managing the environment; and (v) improving governance and preventing corruption. Over the near and medium term, PRC and
13

ADB. 2006. Country Strategy and Program Update (20072008): Peoples Republic of China. Manila.

40

Appendix 1

ADB strategies related to the following will be reflected in ADBs operations in the PRC: (i) pro-poor economic growth through infrastructure provision; (ii) support for private sector development; (iii) environment and poverty reduction (iv) regional cooperation; (v) pro-poor policy analysis; and (vi) special initiatives such as poverty reduction funds and the PRCGlobal Environment Facility partnership. 2. Poverty in the Lao Peoples Democratic Republic

13. To Lao villagers, poverty is related to not having enough rice to eat. Thus, most peoples livelihoods are based on agriculture, with rice as the staple crop, sometimes supplemented by corn. Swidden (slash-and-burn) agriculture is quite widely practiced despite government efforts to eradicate it. These efforts, together with an opium eradication policy, have contributed to poverty in some upland areas. Poverty in the Lao Peoples Democratic Republic (Lao PDR) is complex because of the multiethnic culture and geographic distribution of the population. In this context, the task of poverty reduction remains a challenge. 14. Poverty rates are lower in urban than in rural areas, with the poverty level lowest in the capital city of Vientiane. The rural poor have limited access to education, thus restricting employment opportunities and consequently increasing their vulnerability. The predominance of subsistence agriculture likewise limits opportunities for formal employment. According to analysis done in the Participatory Poverty Assessment (2006), the primary cause of poverty identified by interviewed villagers continues to be limited access to cultivable land, especially for rice production. This is because of attempts by local officials to carry out land reform, consolidate villages, and reduce or eradicate swidden cultivation. 15. The incidence of poverty in Lao PDR is also linked to lack of access to infrastructure. Less than 70% of villages have ready access to roads, only 35% have access to electricity, and only 6% use piped water. There is likewise a correlation between poverty and the absence of essential transport and communication infrastructure, particularly in remote areas. 16. However, poverty reduction efforts have posted some gains in relation to lowered food consumption poverty, improved food security, and increased asset ownership. The number of absolute poor declined from about 2 million in 1992/93 to 1.8 million in 2002/03. This translates into one in three persons who did not consume enough to meet basic needs in 2002/03, compared with almost one in two persons in 1992/03. Poverty incidence also fell from 46% in 1992 to 33% in 2003. Most of the reduction occurred in the second half of the of the 1990s, partly because of slower population growth, higher rice production, greater labor mobility of educated rural youth, urbanization, small and medium enterprise development, improvement in market access internally and to neighboring countries, and the growth of commercial agriculture. The country is on its way to meeting the income poverty MDG although it lags behind on a number of non-income MDGs (i.e., life expectancy at birth, child malnutrition, infant mortality, and maternal mortality). 17. In June 2004, the Government published its National Growth and Poverty Eradication Strategy (NGPES). This defines the overall development framework, and a road map for reaching its poverty reduction objectives over the medium term. The 6th National Socio-Economic Development Plan (NSEDP VI) for 2006 to 2010 reaffirmed these goals. As part of its development vision, the Government seeks to leave least developed country status by 2020. By 2010 the Government aims to (i) raise GDP per capita to $835 from around $550 today,

Appendix 1

41

(ii) (iii) (iv) (v)

reduce the proportion of poor households to 25% from around 30% in 2002/03, achieve 90% primary school enrollment from around 65% in 2002/03, lower the mortality rate for children under 5 years of age to 60 per 1,000 live births from 107 in 2000, and increase sustainable access to an improved water source to 75% from 64% in 2004.

18. ADB is committed to assisting the Government in its efforts to alleviate poverty in the country. In fact, poverty reduction is the overarching goal of ADBs assistance program to the Lao PDR. In line with the 6th Five-Year National Socio-Economic Development Plan, the CSP aims to assist Lao PDR in (i) promoting pro-poor, sustainable growth; (ii) fostering inclusive social development; and (iii) addressing priority governance issues, both in terms of core issues (in public sector financial management) and through sector mainstreaming. The Poverty Partnership Agreement (PPA) (2001) between ADB and the Government emphasizes (i) sustainable economic growth; (ii) accelerated human and institutional development as a prerequisite for realizing national development goals; (iii) improved governance, a vital link between economic growth and poverty reduction; and (iv) environmental sustainability as a prerequisite for sustained economic growth. The Enhanced Poverty Reduction Strategy (EPRS) adopted by ADB in 2004 outlines the link between ADBs poverty reduction interventions and country outcomes supported in the Country Strategy and Program for Lao PDR (20072011). The EPRS has dispensed with PPAs as well as with numerical lending targets for specific types of interventions. It instead emphasizes support based on country-specific priorities and the strengthening of monitoring and evaluation in the country, project, sector and theme, and institution. 3. Poverty in Nepal

19. Nepal is one of the poorest countries in the world, with about 31% of its population living below the poverty line. 14 The country is characterized by small landholdings, rapid population growth (around 2.2% per year), and a fragile ecology, leading to persistent poverty in many areas. About 80% of Nepals population lives in rural areas, where poverty incidence is 35%, almost three and a half times that in urban areas (10%). As noted in the Governments Poverty Reduction Strategy (Tenth Plan 20032007), the level and intensity of poverty is closely linked to the pace and pattern of economic growth in rural and urban areas and economic/incomegenerating opportunities generated with such growth. Many rural areas lack access to basic social and economic infrastructure (education, health care, roads, safe drinking water, and markets). Remote districts and regions are distant from the mainstream of development and are the most neglected. 20. Nepals poverty situation may be traced to a combination of the countrys landlocked location, fragile topography, limited infrastructure base, small landholding and subsistence nature of farming, low rates of productivity improvement in agriculture, weak governance, unequal pace of rural and urban growth, and political instability, which has fueled insurgency in the country. 21. Despite low income levels, steady progress has been made toward the achievement of the MDGs. About 24% of the population lives on less than $1 a day, a decrease from 34% in 1996. The proportion of children (less than 5 years of age) who are underweight decreased from 57% in 1990 to 38% in 2006. Primary school net enrollment increased from 64% in 1990 to 87% in 2006 and youth literacy (for ages 1524) increased from 50% in 1991 to 79% in 2006. Infant
14

Nepal National Planning Commission. 2007. Economic Survey. Kathmandu.

42

Appendix 1

mortality likewise fell from 97 per 1,000 live births in 1990 to 48 in 2006. The share of the population with access to safe drinking water also improved from 46% in 1990 to 82% in 2006. However, despite these notable improvements, the level of overall social development in Nepal is low. Nepal ranks 142nd out of 177 countries in the UNDPs Human Development Index (2005). One of the Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategy (NPRS)/Poverty Reduction Cooperation Fund (PRF) regional technical assistance (RETA) projects (TA 6120-REG: Social Protection Indexwith equal funding from NPRS and PRF) placed Nepal above Pakistan but below the four other countries in the study (Bangladesh, Indonesia, Mongolia, and Viet Nam), indicating that more work is required to improve social protection in Nepal. 22. The Governments Tenth Plan (20032007) represented a renewed commitment to achieve sustainable reduction in the poverty level in Nepal from 38% of the population at the beginning of the plan period to 30% by the end of the Tenth Plan in 2007, and to further reduce poverty rate to 10% in about 15 years. A new 3-year interim plan was prepared with $300,000 assistance from ADB (but not through NPRS). It envisages a reduction in the poverty rate to 24% by 2010. 23. As noted in the PPA between the Government and ADB, the Governments paramount goal is to reduce the incidence of poverty in the country to less than 10% of the population by 2017. Other key goals include (i) reducing infant mortality from 118 to 62 per thousand births (already achieved), (ii) increasing life expectancy from 56 to 69 years, (iii) increasing the adult literacy rate from 40% to 100%, (iv) increasing annual economic growth to 8.3%, and (iv) bringing down population growth from 2.3% to 1.5%. The Government and ADB have agreed that accelerated broad-based economic growth, coupled with continued reduction in population growth and the expansion of opportunities for the poor to participate in the development process, is essential to reducing poverty in Nepal. Such growth would require social and economic infrastructure development. The Government and ADB have agreed to work together to facilitate broad participation in a development process that is carefully structured so that participants recognize the trade-offs and arrive at a broad-based consensus on change. Development initiatives would be designed to improve equity between the poor and the better-off, rural and urban populations, women and other vulnerable groups and those who have not been disadvantaged. 24. The overarching objective of ADBs country strategy and program (CSP) 20052009 15 is to achieve sustained poverty reduction by fostering more inclusive processes of broad-based growth, social development, and good governance. All lending products are poverty intervention projects. The CSPs crosscutting initiatives include (i) supporting the creation of an enabling environment for increased private sector participation and investment by fostering better policy, and more effective implementation of policies and regulatory reform in key sectors; (ii) addressing gender, ethnic, and caste discrimination through policy reform, targeted investments, and the mainstreaming of equal opportunity measures in key sector investments; (iii) improving social, environmental, and resettlement assessment policies, procedures, and practices as these relate to investment projects; and (iv) accessing benefits from regional cooperation initiatives in the areas of transport connections and trade facilitation, energy, tourism, and communications with neighboring countries. ADBs strategy will rest on three of the four pillars of the PRSP: broad-based economic growth, inclusive social development, and good governance.
15

ADB. 2004. Country Strategy and Program (20052009): Nepal. Manila.

Appendix 1

43

4.

Poverty in the Republic of the Marshall Islands

25. Poverty in the Republic of the Marshall Islands (RMI) is not equated with not having enough to eat, since the poor are not starving and most have access to land and other natural resources. Most people in the RMI define poverty and hardship as not having enough money to meet ones daily needs or not having enough resources to get by. Thus, to the average Marshallese, inadequate income from employment or from the sale of goods (such as copra or handicrafts) and not having access to utilities (such as electricity and water) and services (such as health care and education) are factors contributing to their hardship. 26. The RMI comprises about 1,225 islands and islets grouped in 29 coral atolls. The two major urban atolls of Majuro and Kwajalein (including Ebeye Island) are home to two thirds of the population. The high population density in these two islands, economic decline particularly in rural areas, and worsening income inequality are the causes of many of the problems being experienced. Challenges to poverty reduction efforts in the RMI include falling per capita incomes, rising population densities, the limited capacity of the Government to provide employment, weak governance, the limited skills base of the population brought about by poor access to education, high transportation costs, rising environmental concerns, and a weak enabling environment for private sector activity. 27. The countrys per capita GDP fluctuated before the countrys independence in 1986 but grew at a steady pace of 3% annually from 1986 to 1995. This decade of growth reflected the commencement of the economic package under the Compact of Free Association with the United States. However, per capita GDP declined by 20% over the 6-year period to 2001 before growing between 2002 to 2006 at an average annual rate of 3.6%. The RMIs real per capita gross national income (GNI) increased by 0.4% annually over the 8-year period to 2005. This growth is not sufficient to achieve significant poverty reduction and ways to increase growth are needed. 28. The RMIs progress toward achieving the MDGs remains slow. The latest available data (from 1999) indicate that 20% of the population lives on $1 a day or less. Infant mortality fell from 63 per 1,000 live births in 1990 to 51 in 2005 but remains unacceptably high. On the other hand, the proportion of children dying before reaching the age of five fell from 92 per 1,000 live births in 1990 to 58 in 2005. About 87% of the population has access to safe drinking water and slight improvements have been noted in the proportion of the population that has access to improved sanitation facilities. However, significant differences remain between urban and rural areas. Unemployment was recorded at 31% during the 1999 census, increasing to 34% in 2004. Youth unemployment is around 60%, with serious implications for long-term social development and stability. 29. ADB and the Government of the Marshall Islands forged a Poverty Partnership Agreement (PPA) in 2002 to develop a National Poverty Reduction Strategy, which will also support ADBs operational strategy for the country. The goals of the partnership are to (i) ensure that the RMI national development strategy effectively addresses poverty reduction, (ii) fully integrate and coordinate the NPRS with the countrys national development strategy, (iii) incorporate the NPRS as a core component of ADBs country strategy and program for the RMI, and (iv) monitor implementation progress. The RMI national development strategy, together with national commitments toward achieving the MDGs and compliance with associated treaties, will guide the identification of an appropriate set of critical country-specific short- to medium-term poverty reduction indicators. Monitoring these agreed indicators will help determine progress toward the achievement of each NPRS and the relevant MDGs.

44

Appendix 1

30. As embodied in ADBs CSP (20072011) 16 for the RMI, ADB will prioritize the provision of technical assistance and policy advice for (i) increasing public sector productivity with emphasis on basic social services; and (ii) enhancing the environment for private sector investment, job creation, and growth. The strategy directly addresses the priorities of the poor i.e., improved access to basic social services, and greater job and income opportunitiesand thus the focus of the current Pacific Strategy.

16

ADB. 2006. Country Strategy and Program Update (20072011): The Republic of the Marshall Islands. Manila.

Appendix 2

45

APPROACH AND METHODOLOGY OF THE STUDY 1. This special evaluation study (SES) evaluated the Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategy (NPRS) and Poverty Reduction Cooperation Fund (PRF) programs in developing member countries (DMCs) of the Asian Development Bank (ADB). The evaluation included both a top-down assessment of the funded program as a whole, examining how the program relates to ADBs overall strategic objectives and priorities, and a bottom-up assessment focusing on the performance of individual technical assistance (TA) projects in selected countries. At the strategic level, the evaluation examined the relationship and links to ADBs overarching goal of poverty reduction as set out in the Poverty Reduction Strategy (1999) and Long-Term Strategic Framework (20012005), and as articulated in the Medium-Term Strategic Framework (MTS-I) and MTS-II. However, the main efforts of this evaluation were put into program and project assessment, covering aspects such as project design, implementation, and performance. The evaluation also examined the procedures, management, and administrative support provided to the funds. 2. For the assessment of performance and impact of NPRS/PRF projects in individual countries, a case-study approach was adopted, following a desk review of the programs, from which a field evaluation program was developed. The field program focused on countries with a substantial portfolio under several geopolitical systems. Four countries were selected for fieldwork: the Peoples Republic of China (PRC), Lao Peoples Democratic Republic (Lao PDR), Nepal, and Republic of the Marshall Islands (RMI). A total of 35 TA projects were evaluated in the field, and four country case studies prepared, the main report sections of which are included as Appendixes 9 to 12 of this report. Project stakeholders were interviewed in Manila and in-country, and their views formed the basis for the SES recommendations. The field evaluations were necessarily brief, but it is anticipated that future full evaluation will result in significant changes in the ratings. Possible exceptions to this include a number of partly completed TA projects that have potential for success but need to demonstrate improved performance in the future. In-country field evaluation was undertaken of longer-established or completed TA projects where some information on effectiveness and sustainability should be available. A few more recent projects were also selected in countries such as Nepal, where many TA projects have commenced recently. Other selection criteria included accessibility for field evaluation (on account of the limited period in-country) and diversity of sectors. 3. The SES conducted a desk study of 125 NPRS/PRF TA projects (106 PRF TA projects approved from 2002 to 2007 covering 89 stand-alone PRF TA projects implemented in 14 DMCs and 17 regional technical assistance (RETA) projects, and 19 NPRS TA projects approved from 2001 to 2005 covering 16 stand-alone NPRS TA projects implemented in nine DMCs and three RETA projects). During the desk review and country studies, interviews were conducted with country directors, project administration unit heads, ADB project officers, ADB support staff, staff of implementing and executing agencies, consultants, and government officials. These discussions formed the basis for the SES suggestions on improvements in TA processes that could be considered if a new poverty reduction fund is launched in the future. Questionnaires were prepared for each project, which sought the view of mission leaders/project officers or consultants on a range of evaluation factors related to the NPRS/PRF programs. A total of 51 questionnaires were sent out and a response rate of 53% was obtained. Available information on the projects was attached to the questionnaires to reduce the amount of work required and increase the response rate. In addition, the SES conducted a desk study of all 89 stand-alone PRF TA projects implemented in 14 DMCs and 17 RETA projects, and all 16 stand-alone NPRS TA projects implemented in nine DMCs and three RETA projects in order to

46

Appendix 2

determine their estimated level of contribution to their objectives at the design and completion stages. The SES also conducted a technical assistance completion report (TCR) review covering a total of 30 TCRs for completed projects (seven TCRs for NPRS TA projects and 23 TCRs for PRF TA projects) to ascertain whether TA projects funded by NPRS and PRF had achieved positive outcomes on activities that contribute to poverty reduction in partner countries and the region. 4. Field inspections were conducted of ongoing or completed project activities in each country. Completed questionnaires were reviewed, extended, or modified during operations evaluation missions (OEMs). The completed questionnaires are included in individual project reports, which summarize project performance and evaluate each project under the four standard Operations Evaluation Department (OED) evaluation criteria of relevance, effectiveness, efficiency, and sustainability. These ratings form the basis for the judgments of success for the Japan Fund for Poverty Reduction country and overall programs. The full country reports are retained in OED as background information. They may be useful to OED and the Regional and Sustainable Development Department (RSDD) if more detailed project or program evaluations are undertaken in the future. 5. The main report sections of the country reports and a summary of NPRS performance based on fieldwork are also attached as appendixes to this report. A. Study Sample and Assessment

6. On the basis of resource availability, a sample of 35 TA projects were evaluated in the field. One RETA project was separately assessed in three case-study countries and another in four, bringing the total of TA assessments to 40. In addition, ratings of 15 other TCRs for NPRS/PRF TA projects that were not selected for field evaluation were included in the assessment. Therefore, out of 125 1 ongoing or completed NPRS/PRF TA projects, 50 (40%) were covered. B. Limitation

7. Individual TA projects were not evaluated at the level of a regular OED evaluation because of the limited time available for fieldwork. Thus, around 10 projects were evaluated in two weeks in-country, compared with a full evaluation, which would require perhaps 3 days fieldwork per TA project. This meant that relatively few (though, it is hoped, typical) project sites could be visited, and a less than full range of project stakeholders interviewed. Where possible (e.g., where a number of TA projects were located in reasonable proximity), project sites were visited. For other TA projects, fieldwork was limited to interviews with stakeholders and field visits to other sites remote from the capital city were not undertaken. Despite these limitations, it is not expected that future full evaluation will greatly change the ratings assigned to most projects.

Includes six TA projects cofinanced by NPRS and PRF.

Appendix 3

47

TECHNICAL ASSISTANCE PROJECT INFORMATION

(as of 31 December 2007) (TA numbers of TA projects selected for field evaluation are in boldface type)
TA No. Country/Name Afghanistan 4461 Poverty Reduction and Rural Renewable Energy Development 4541 Natural Resources Management and Environmental Protection Project/Alleviation of Poverty in Buffer Zone of Protected Areas Azerbaijan 4621 Participatory Strategy Development and Implementation for Achieving the MDGs Bangladesh 4303 Strengthening Capacities for Poverty Monitoring and Evaluation 4320 Social Protection of Poor Female Workers in the Garment Sector in the Context of Changing Trade Environment 4707 Participation of Urban Poor in Municipal Governance 4740 Second Command Area Development Cambodia 3947 Sustainable Employment Promotion for Poor Women 3955 Engagement of a Poverty Consultant at the Cambodia Resident Mission 4037 Dissemination of the National Poverty Reduction Strategy 4131 Preventing Poverty and Empowering Female Garment Workers Affected by the Changing International Trade Environment 4283 Participatory Poverty Study of the Tonle Sap Basin 4376 Capacity Building for the Tonle Sap Poverty Reduction Initiative 4574 Community Self-Reliance and Flood Risk Reduction 4575 Developing Cambodia business Initiative in Rural Development (C-BIRD) 4755 Developing Deposit Services for Rural Cambodia 4777 Dormitories and Learning Centers for Secondary School Girls Peoples Republic of China 4142 Fighting Poverty through HIV/AIDS on Road Projects in Yunnan Province 4200 Fund for Strategic Policy Conferences and Studies for Poverty Reduction 4215 Safe Drinking Water and Sanitation for the Rural Poor 4222 Policy Study on Poverty Reduction Strategy- Trends, Challenges and Future Directions 4298 Capacity Strengthening of PRC's National Development Planning Process 4307 Poverty Reduction in Key Forestry Conservation Programs 4308 Poverty Reduction in Grassland Improvement Program 4322 Poverty Impact of Areawide Road Networks 4401 Rural Income and Sustainable Development 4402 Heating Supply for Urban Poor in Liaoning Province 4430 Rural Finance Reforms and Development of Microfinance Institutions (Rural Credit Cooperatives Development) 4454 Developing a Poverty Monitoring System at a County Level 800 400 400 150 360 400 400 1,000 900 500 1,000 800 Jul-03 Open Jul-07 Oct-05 Feb-05 May-04 Dec-04 Mar-05 Mar-05 Jun-08 Oct-06 Apr-06 Jun-05 Jun-05 Nov-07 Feb-06 401 50 32 80 600 400 79 18 400 Oct-02 Closed 128 Oct-02 Closed 80 Dec-02 Closed 600 Jun-03 Closed Apr-04 Mar-03 Jul-03 Dec-04 Nov-05 Oct-06 Dec-04 Sep-05 398 73 33 507 99 66 41 85 350 420 350 Dec-03 Closed 420 Mar-04 Open Mar-06 May-06 Mar-06 Dec-07 268 209 77 50 650 200 850 Jul-05 Open Sep-07 Nov-07 304 47 AppFund Source ($000) NPRS PRF Other Total roval 750 810 975 750 Dec-04 1,785 Dec-04 Status Open Open Closing Date Original Revised Dec-06 Nov-06 Aug-07 Nov-07 Disbursed $'000 % 582 291 78 36

480 350 600

480 Dec-05 950 Dec-05

Open Open

Jun-07 Apr-07

Jan-08 Mar-10

348 335

73 96

425 500 500 150 600 800

425 Dec-03 500 Aug-04

Open Open

Mar-05 Sep-06 Aug-06 Apr-06 Dec-07 Dec-07

Dec-07 Dec-07 Dec-07 Mar-07 Jun-08

390 475 351 125 325 539

92 95 70 83 49 67

500 Apr-05 Open 150 Apr-05 Closed 600 Dec-05 800 Apr-06 Open Open

400 Oct-03 Closed 400 Nov-03 Closed 150 Nov-03 Closed 360 Dec-03 Closed 400 Dec-03 Closed 400 Dec-03 Closed 1,000 Apr-04 Closed 900 Sep-04 Open 500 Oct-04 Closed 1,000 Nov-04 Open

398 100 390 146 352 394 365 949 336 493 834 98 97 98 99 91 95 37 99 83

May-05 Apr-07 Dec-06 Mar-08 Sep-05 Jun-06 Nov-05 Dec-07

300

300 Dec-04

Open

Mar-07

Dec-07

224

75

48

Appendix 3

TA No. Country/Name 4566 Poverty Reduction in Coal Mine Areas in Shanxi Province 4580 NGO Government Partnerships in Village Level Poverty Alleviation 4649 Alternative Energy Supply for Rural Poor in Remote Areas 4680 Alternative Livelihood Options to Facilitate Coal Sector Restructuring 4694 Urban Poverty Strategy Study 4933 Facility for Policy Reform and Poverty Reduction Kyrgyz Republic 4405 Study on Pricing Systems and Cost Recovery mechanisms for Irrigation in the Kyrgyz Republic 4408 A Study of the Impact of Land Reform on Agriculture, Poverty Reduction and Environment Lao PDR 4009 Social Protection in the Lao PDR: Issues and Options 4108 Integrating the Poor in Regional Trade through Standard-Setting for Private Sector Development (Phase 1) 4339 The Extent and Impacts of Gender Inequality in Womens Access to Land, Forests and Water Resources on Poverty Reduction in Lao PDR 4392 Marketing Support of Organic Produce of Ethnic Minorities 4406 Capacity Building for Smallholder Livestock Systems in Lao PDR 4434 Poverty Reduction Through Land Tenure Consolidation, Participatory Natural Resources Management and Local Communities Skills Building 4627 Public Expenditure Planning for National Growth and Poverty Eradication Strategy (NGPES) 4787 Revitalizing Community Demand for Immunization Maldives 4591 Development of a Results-Oriented 7th National Development Plan Mongolia 4383 Participatory Poverty Assessment and Monitoring (PPAM) 4632 Urban Development Housing Project Nepal 4353 Promoting Pro-poor and Gender Responsive Service Delivery Project 4754 Education Sector Development I 4759 Reaching the Most Disadvantaged Groups in Mainstream Rural Development 4760 Enhancing Poverty Reduction Impact of Road Projects 4774 Economic and Social Inclusions of the Disadvantaged Poor through Micro-Irrigation and Other Livelihood Enhancement Initiatives 4776 Enabling the Private Sector to Undertake PovertyFocused Water Distribution in Kathmandu Valley Pakistan 4015 Enhancing Capacity for Resource Management and Poverty Reduction in Punjab 4277 Supporting of Poverty Reduction Initiatives in Pakistan 4319 Determinants and Drivers of Poverty Reduction and ADB's Contribution in Rural Pakistan

AppFund Source ($000) Status NPRS PRF Other Total roval 500 500 Feb-05 Closed 1,000 500 300 300 65 300 530 1,000 Apr-05 500 Sep-05 Open Open

Closing Date Original Revised Dec-05 Dec-07 Oct-07 Aug-06 Apr-06 Sep-07 Jun-09 May-05 May-06 Jun-08 Mar-08 Apr-07 Dec-07

Disbursed $'000 % 301 60 457 420 265 84 0 274 270 46 84 88 28 0 91 51

300 Nov-05 Closed 300 Nov-05 965 May-07 Open Open

900

300 Oct-04 Closed 530 Oct-04 Open

Jun-07 Dec-07

150 150

150 Dec-02 Closed 150 May-03 Closed

Dec-03 Dec-03

Dec-04 May-04

70 148

47 99

250

250 May-04 Closed

May-06

Dec-06

166

67

600 550 974

600 Sep-04 550 Oct-04 974 Nov-04

Open Open Open

Sep-07 Dec-06 Dec-07

Jun-08 Jun-08 Jul-08

215 156 330

36 28 34

700 140 377

700 Aug-05 140 May-06

Open Open

Sep-07 Apr-08 Dec-05

Dec-07 Dec-07

601 113 374

86 81 99

377 May-05 Closed

300 250 200 150 685 350 450 450 350

300 Aug-04 Closed 600 Aug-05 Closed 200 Jul-04 Closed Open Open Open Open

Aug-05 Mar-06 Jan-06 Oct-06 Jan-08 Aug-07 Dec-07

Jan-07 Jun-07 Dec-06 Jul-07 Jun-08 Aug-07

277

92

250 100 139 146 32 254 217 70 98 5 72 48

600 Dec-05 685 Dec-05 350 Jan-06 450 Mar-06

570

150

720 Mar-06

Open

Aug-07

Jun-08

154

27

230 32 64 580

450 148

680 Dec-02 Closed 243 Dec-03 Closed 580 Mar-04 Closed

May-04 Jan-06 Jul-05

Aug-05 Jan-07 Dec-06

228

99

95 100 462 80

Appendix 3

49
Disbursed $'000 % 107 27

TA Fund Source ($000) No. Country/Name NPRS PRF Other Total 4414 Non-Formal Primary Education and Functional 400 400 Literacy for Rural Women in Selected Barani Areas of Punjab 4537 Implementing the Public Safety Reforms in Four 950 950 Districts of the Punjab Province 4602 Support to Implementation of Gender Reform Action 800 3,765 4,565 Plans (GRAPs) Republic of the Marshall Islands 4653 Increasing Ownership and Effective Demand for Improved Urban Waste Management and Disposal 4110 4278 4442 4567 Sri Lanka Community Information Services for the Poor Poverty Assessment and Information Management Psycho-social Health in Conflict-affected Areas Sri Lanka Post Tsunami Needs Assessment and Preparation for Emergency Assistance Implementation Strategies 4761 Microinsurance Sector Development Tajikistan 4423 Development of Community Based MicroHydropower Supply in Remote Rural Areas 4598 Rural Development Project 4664 Farm Analysis and Awareness Raising for Debt Resolution Uzbekistan 3781 Comprehensive Medium-Term Strategy for Improving the Living Standards of the People of Uzbekistan 4820 Implementation and Monitoring of Policy Reforms in Uzbekistan's Agriculture Sector Viet Nam 4028 4205 4252 4276 4331 4453 4480 4638 4644 Transport Services Networks for the Poor 350 Early Childhood Development for the Poor 450 Support to Poverty Reduction Activities in Vietnam 37 73 Developing Social Security System in Viet Nam 750 Support for Pro-poor Health Policies in Viet Nam 550 Supporting the Preparation of the Law on Gender 370 Equality Developing Agricultural Insurance in Viet Nam 600 Implementing the Regulatory and Supervisory 250 Framework for Micro Finance Support to Hue and Quang Tri Provinces for 900 Formulating Sustainable Poverty Reduction and Growth Programs Capacity Building Support to Dak Nong Province for 650 Improving Poverty Reduction and Growth Performance Benefits Sharing Mechanisms for People Adversely 150 Affected by Power Generation Projects in Viet Nam Strengthening Institutional Capacity of Local 1000 Stakeholders for Implementation of Son La Livelihood and Resettlement Plan Air Pollution, Poverty and Health Effects in Ho Chi 600 Minh City Subregional 6047 National Poverty Reduction Strategies in Pacific Developing Member Countries (FSM FIJ TON TUV) 6061 Pacific Fund for Strategic Poverty Analysis (COO FIJ KIR RMI FSM NAU PAL PNG SAM SOL TIM TON TUV VAN) 6113 Making Markets Work Better for the Poor (CAM LAO VIE) 500 50 350 450 125 750 550 370 570 600 230 200 800 150 800 300

Approval Oct-04

Status Open

Closing Date Original Revised Dec-06 Jan-08

Dec-04 Jun-05

Open Open

Dec-07 May-08

Jan-08 Jun-08

432 121

45 15

300 Sep-05

Open

May-06

Dec-07

228

76

800 350 400 500

800 350 400 500

May-03 Closed Dec-03 Open Nov-04 Open Feb-05 Closed

Jan-05 Feb-07 Dec-07 Dec-05

Aug-05 Dec-07 Mar-08 Dec-06

795 99 227 65 82 21 499 100

600

600 Jan-06

Open

Sep-06 Mar-06 Mar-06 Oct-06

Aug-07 Aug-07 Mar-07 Dec-07

364 770 142 547

61 96 95 68

800 Nov-04 Closed 700 850 Jun-05 Closed 500 1,300 Oct-05 Open

800 Nov-01 Closed 800 Jul-06 Open

Dec-03 Sep-08

Aug-07 Dec-08

566 135

99 23

15

Dec-02 Oct-03 Dec-03 Dec-03 Apr-04 Nov-04

Closed Closed Closed Closed Open Closed Open Open Open

Feb-04 Oct-04 Dec-05 Dec-05 Jun-06 Dec-06 May-07 Sep-06 Nov-07

Mar-05 Jul-06 Dec-06 Dec-07 Dec-07 Jun-07 Apr-08 Dec-07 Dec-07

255 365 103 550 487 357 285 121 467

73 81 93 73 89 96 48 49 52

600 Dec-04 250 Aug-05 900 Sep-05

4679

650 Oct-05

Open

Oct-07

Jun-08

239

37

4689 4690

150 Nov-05 1000 Nov-05

Open Open

Nov-06 Dec-07

Feb-08 Mar-08

132 492

88 49

4714

600 Dec-05

Open

May-08

242

40

500 Sep-02 Closed 50 Oct-02 Closed

Sep-03 Dec-02

Aug-05 Apr-03

471 48

94 96

385 2,541 2,926 Nov-05

Open

Dec-06

Dec-07

368

96

50

Appendix 3

TA Fund Source ($000) No. Country/Name NPRS PRF Other Total 6115 Poverty Reduction in Upland Communities in the 800 800 Mekong Region through Improved Community and Industrial Forestry (CAM LAO THA VIE) 6118 Promoting NGO Support for Poverty Alleviation in the 150 150 GMS Subregion (Phase 1) (Not specified) 6157 Strengthening Poverty Analysis and Strategies in the 400 400 200 1,000 Pacific (COO KIR SOL PNG TUV) 6171 Reviewing Poverty Impact of Regional Economic 850 850 Integration in the GMS (CAM LAO THA VIE) 6175 Making Resource Allocation Pro-poor and 500 500 Participatory in the Pacific (FIJ VAN) 6177 Mainstreaming Gender into Poverty Reduction 350 350 Strategies in Central Asia Region (AZE KAZ KGZ TAJ) 6190 Preventing the Trafficking of Women and Children 700 700 and Promoting Safe Migration in the Greater Mekong (CAM LAO THA VIE) 6242 Developing New Policy Paradigms for Sustainable 150 150 Livelihood Protection and Natural Resource Management among Ethnic Minorities of GMS: A Study of Policies and their Impacts, Strategies for Change. (LAO VIE) 6243 Strengthening Malaria Control for Ethnic Minorities in 750 750 the GMS (CAM LAO MYA PRC THA VIE) 6245 Strengthening Pro-poor Policies in the Pacific (COO 925 1,125 2,050 FIJ KIR RMI FSM NAU PAL PNG SAM SOL TIM TON TUV VAN) 6247 HIV/AIDS Vulnerability and Risk Reduction Among 700 700 Ethnic Minority Groups through Communication Strategies (CAM LAO PRC THA) 6289 GMS: Core Environment Program and the 550 24,420 24,970 Biodiversity Conservation Initiative (CAM PRC THA VIE) 6306 Mainstreaming MfDR in Support of Poverty Reduction 1,800 500 2,300 (BAN NEP PAK) 6315 Remittance and Poverty in Central Asia and South 1,000 300 1,300 Caucasus ( ARM AZE KGZ TAJ ) Interregional 5945 Fifth Agriculture and Natural Research at CGIAR Centers--Breeding Iron-Rich Rice to Reduce IronDeficiency Anemia in Asia (Supplementary) (BAN IND NEP PAK) 6006 Regional Conference on National Poverty Reduction Strategies (Not specified) 6073 Developing Tools for Assessing the Effectiveness of ADB Operations in Reducing Poverty (PAK PRC VIE) 6088 Strengthening and Collection of Purchasing Power Parity Data in ADB DMCs (BAN BHU CAM PRC FIJ HK IND INO LAO MAL MLD MON MYA NEP PAK PNG PHI KOR SIN SRI TAP THA VIE) 6109 NGO Partnerships for Poverty Reduction (AFG BHU CAM KIR KGZ LAO MLD MON NEP SAM SOL TAJ TUV VAN AZE BAN COO INO RMI FSM NAU PAK PNG PRC SRI TON TKM VIE) 6120 Developing a Social Protection Index for Committed Poverty Reduction (BAN INO MON NEP PAK VIE) 6130 Study of Urban Violence in Asia: Towards More Effective Urban Upgrading (Not specified) 6170 Pilot Project on Institutionalizing Civil Society Participation to Create Local Pro-Poor Budgets (PAK SRI INO) 6176 Building Capacity for Participatory Approaches to Poverty Reduction in ADB Operation (AZE IND KGZ MON PAK)

Approval Status Aug-03 Open

Closing Date Original Revised Oct-04 Dec-07

Disbursed $'000 % 600 75

Aug-03 Closed Dec-03 May-04 Open Open

Mar-04 Mar-06 Dec-05 Dec-06 Mar-05

Dec-05 Dec-07 Dec-07 Apr-07 Sep-06

129 587 775 350 316

86 73 91 70 90

Jun-04 Closed Jul-04 Closed

Oct-04

Open

Jun-06

Dec-07

492

70

May-05 Closed

Sep-05

Apr-06

29

19

May-05 Jun-05

Open Open

Jun-07 Jun-08

Dec-07

750 100 905 98

Jul-05

Open

Jun-07

Mar-08

344

49

Dec-05

Open

Dec-08

Dec-09

539

98

Jan-06 Apr-06

Open Open

Dec-07 Mar-08

Mar-09

921 777

51 78

905 6,080 6,985 Feb-03

Open

Dec-03

Dec-07

399

44

50 600 800 2320

50 Nov-01 Closed 600 Dec-02 Closed 3120 Dec-02 Open

Dec-01 Dec-04 Dec-05

Dec-01 Mar-06 Mar-08

32 260 770

64 43 96

1,000

1,000 May-03 Closed

Dec-04

Apr-07

979

98

300

300 150 400

600 Aug-03 Closed 150 Oct-03 Closed 400 Apr-04 Closed

Mar-05 Feb-05 Mar-05

Jul-06 Apr-06 May-07

532 108 380

89 72 95

300 300

600

Jul-04

Open

Jun-06

Jun-07

251

42

Appendix 3

51
Disbursed $'000 % 464 81 498 90

TA No. Country/Name 6188 Establishing Legal Identity for Social Inclusion (BAN CAM NEP) 6224 Pilot Testing Participatory Assessment Methodologies for Sustainable and Equitable Water Supply and Sanitation Services (SRI VIE) 6248 Legal Empowerment for Women and Disadvantaged Groups (BAN INO PAK) 6270 Facilitating Knowledge Management for Pro-Poor Policies and Projects (All ADB DMCs) 6278 Innovative Information and Communication Technology in Education and its Potential for Reducing Poverty in Asia and the Pacific (BAN MON NEP SAM) 6284 Development of Catastrophe Risk Insurance Mechanisms (Not specified) 6296 Developing Pro-Poor Governance Capability and Knowledge (Not specified) 6308 Up-Scaling the Social Protection Index for Committed Poverty Reduction (Countries not covered in TA 6120 (About 14 countries were included in the TA but not indentified in TA Paper & TPR) 6316 Asian Development Community Broadcasting Initiative (Not specified)

AppFund Source ($000) Status NPRS PRF Other Total roval 575 575 Sep-04 Open 550 550 Dec-04 Closed

Closing Date Original Revised Dec-05 Sep-07 Mar-06 Feb-07

550 980 800

550

Jul-05

Open Open Open

Apr-07 Dec-07 Dec-07

Dec-07 Nov-08

372 561 464

68 57 58

980 Nov-05 800 Dec-05

150 875 900

150 Dec-05 Closed 875 Dec-05 900 Mar-06 Open Open

Jul-06 Nov-07 Nov-07

Jul-07 Jan-08 Dec-07

77 661 657

51 76 73

150

150 Apr-06 Closed

Jun-07

150 100

ADB = Asian Development Bank; AFG = Afghanistan; AIDS = acute immune deficiency syndrome; ARM = Armenia; AZE = Azerbaijan; BAN = Bangladesh; BHU = Bhutan; PRC = Peoples Republic of China; CAM = Cambodia; COO = Cook Islands; DMC = developing member country; FSM = Federated States of Micronesia; FIJ = Fiji Islands; GMS = Greater Mekong Subregion; HK = Hong Kong, China; HIV = human immunodeficiency virus; IND = India; INO = Indonesia; KAZ = Kazakhstan; KIR = Kiribati; KGZ = Kyrgyz Republic; KOR = Republic of Korea; Lao PDR = Lao Peoples Democratic Republic; MAL = Malaysia; MDG = Millennium Development Goal; MLD = Maldives; MON = Mongolia; MYA = Myanmar; NAU = Nauru; NEP = Nepal; NGO = nongovernment organization; NPRS = Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies; PAK = Pakistan; PAL = Palau; PHI = Philippines; PNG = Papua New Guinea; PRF = Poverty Reduction Cooperation Fund; RMI = Republic of the Marshall Islands; SAM = Samoa; SIN = Singapore; SOL = Solomon Islands; SRI = Sri Lanka; TA = technical assistance; TAJ = Tajikistan; TAP = Taipei,China; THA = Thailand; TIM = Timor-Leste; TKM = Turkmenistan; TON = Tonga; TPR = technical assistance performance report; TUV = Tuvalu; VAN = Vanuatu; VIE = Viet Nam. Sources: Technical Assistance Information System. Gender, Social Development and Civil Society Division, and Regional Sustainable Development Department.

52

Appendix 4

NPRS-PRF PORTFOLIO Table A4.1: Yearly Approvals of NPRS, PRF Regional, and PRF-PRC TA Projects ($000)
ADB Approval Year 2001 2002 2003 2004 2005 2006 2007 Total NPRS Number Amount 2 620 3 612 5 1,119 4 1,800 5 2,777 0 0 0 0 19 6,927 PRF Regional PRF-PRC Number Amount Number Amount 0 0 0 0 8 2,659 0 0 16 7,367 7 2,910 25 13,559 5 3,700 28 15,030 5 2,600 11 7,360 0 0 0 0 1 65 88 45,974 18 9,275 Total Number Amount 2 620 11 3,270 28 11,395 34 19,059 38 20,407 11 7,360 1 65 125 62,176

ADB = Asian Development Bank, NPRS = Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies, PRF = Poverty Reduction Cooperation Fund, PRF-PRC = Poverty Reduction Cooperation Fund (Peoples Republic of China Window), TA = technical assistance. Note: Six TA projects were cofinanced by NPRS and PRF Regional Window. Total number of TA projects = 119. Source: Regional and Sustainable Development Department.

Table A4.2: Approved Number of NPRS Technical Assistance, by Region (20012007)

Region Central and West Asia East Asia Pacific South Asia Southeast Asia Regional Total 2001 2002 2003 2004 1 1 2 1 2 3 1 1 1 1 5 1 3 5 2005 2006 2007 Total 1 2 2 7 3 19 % 5.3 10.5 10.5 36.8 15.8 100.0

1 1 4

NPRS = Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies. Source: Regional and Sustainable Development Department.

Table A4.3: Approved Amounts of NPRS Technical Assistance, by Region (20012007) ($000)
Region Central and West Asia East Asia Pacific South Asia Southeast Asia Regional Total 2001 2002 2003 2004 300 500 112 50 620 612 400 350 37 300 1,119 377 1,750 2,777 2005 2006 2007 Total 300 900 727 2,749 650 6,927 % 4.3 13.0 10.5 39.7 9.4 100.0

850 300 1,800

NPRS = Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies. Source: Regional and Sustainable Development Department.

Appendix 4

53

Table A4.4: Approved Number and Amounts of NPRS Technical Assistance, by Region (20012007)
Region Central and West Asia East Asia Pacific South Asia Southeast Asia Regional Total 20012007 Number Amount 4 1,602 1 300 2 900 2 727 7 2,749 3 650 19 6,927 % Number 21.1 5.3 10.5 10.5 36.8 15.8 100.0 Amount 23.1 4.3 13.0 10.5 39.7 9.4 100.0

NPRS = Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies. Source: Regional and Sustainable Development Department.

Table A4.5: Approved Number of PRF Regional Window Technical Assistance, by Region
Region Central and West Asia East Asia Pacific South Asia Southeast Asia Regional Total 2002 2003 2004 2005 1 2 5 12 5 28 2006 2007 Total 1 5 14 36 17 88 % 1.1 5.7 15.9 40.9 19.3 100.0

1 4 2 8

1 2 8 4 16

1 2 10 4 25

5 2 2 11

PRF = Poverty Reduction Cooperation Fund. Source: Regional and Sustainable Development Department.

Table A4.6: Approved Amounts of PRF Regional Window Technical Assistance, by Region ($000)
Region Central and West Asia East Asia Pacific South Asia Southeast Asia Regional Total 2002 2003 2004 2005 250 1,225 2,165 6,285 3,355 15,030 2006 2007 Total 250 2,175 7,705 17,096 9,985 45,974 % 0.5 4.7 16.8 37.2 21.7 100.0

50 979 1,400 2,659

400 1,150 3,398 2,355 7,367

500 620 5,494 1,825 13,559

3,770 940 1,050 7,360

PRF = Poverty Reduction Cooperation Fund. Source: Regional and Sustainable Development Department.

54

Appendix 4

Table A4.7: Approved Number and Amounts of PRF Regional Window Technical Assistance, by Region ($000)
Region Central and West Asia East Asia Pacific South Asia Southeast Asia Regional Total 20022007 Number Amount 1 5 14 36 17 88 250 2,175 7,705 17,096 9,985 45,974 % Number 1.1 5.7 15.9 40.9 19.3 100.0 Amount 0.5 4.7 16.8 37.2 21.7 100.0

PRF = Poverty Reduction Cooperation Fund. Source: Regional and Sustainable Development Department.

Table A4.8: Approved Number and Amounts of PRF-PRC Technical Assistance, 20032007 ($000) Year of Approval 2003 2004 2005 2006 2007 Total Approved Number Amount 7 2,910 5 3,700 5 2,600 1 18 65 9,275

PRF-PRC = Poverty Reduction Cooperation Fund (Peoples Republic of China Window). Source: Regional and Sustainable Development Department.

Table A4.9: Approved Number of NPRS Technical Assistance, by Country (20012007)

Country Azerbaijan Cambodia Lao PDR Maldives Mongolia Pakistan Sri Lanka Uzbekistan Viet Nam Regional Subregional Total 2001 2002 2 1 1 1 1 1 1 1 2 1 3 1 1 1 5 1 1 2 4 1 5 2003 2004 2005 1 2006 2007 Total 1 2 1 1 1 1 1 1 2 3 5 19 % 5.3 10.5 5.3 5.3 5.3 5.3 5.3 5.3 10.5 15.8 26.3 100.0

Lao PDR = Lao Peoples Democratic Republic, NPRS = Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies. Source: Regional and Sustainable Development Department.

Appendix 4

55

Table A4.10: Approved Amounts of NPRS Technical Assistance, by Country, 20012007 ($000)
Country Azerbaijan Cambodia Lao PDR Maldives Mongolia Pakistan Sri Lanka Uzbekistan Viet Nam Regional Subregional Total 2001 2002 112 700 377 300 32 350 570 50 620 500 612 37 300 400 1,119 900 300 1,200 1,800 150 2,777 2003 2004 2005 650 2006 2007 Total 650 112 700 377 300 32 350 570 937 650 2,250 6,927 % 9.4 1.6 10.1 5.4 4.3 0.5 5.1 8.2 13.5 9.4 32.5 100.0

Lao PDR = Lao Peoples Democratic Republic, NPRS = Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies. Source: Regional and Sustainable Development Department.

Table A4.11: Approved Number and Amounts of NPRS Technical Assistance, by Country, 20012007 ($000)
Country Azerbaijan Cambodia Lao People's Democratic Republic Maldives Mongolia Pakistan Sri Lanka Uzbekistan Viet Nam Regional Subregional Total 20012007 Number Amount 1 650 2 112 1 700 1 377 1 300 1 32 1 350 1 570 2 937 3 650 5 2,250 19 6,927 % Number 5.3 10.5 5.3 5.3 5.3 5.3 5.3 5.3 10.5 15.8 26.3 100.0 Amount 9.4 1.6 10.1 5.4 4.3 0.5 5.1 8.2 13.5 9.4 32.5 100.0

NPRS = Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies. Source: Regional and Sustainable Development Department.

56

Appendix 4

Table A4.12: Approved Number of PRF Regional Window Technical Assistance, by Country (20022007)
Country Afghanistan Bangladesh Cambodia Kyrgyz Republic Lao PDR Mongolia Nepal Pakistan Republic of the Marshall Islands Sri Lanka Tajikistan Uzbekistan Viet Nam Regional Subregional Total 2002 2003 1 2 1 2004 2 1 1 2 4 1 3 1 1 3 4 2 25 2005 2 3 2006 2007 Total 2 4 9 2 7 1 6 6 1 4 3 1 12 17 13 88 % 2.3 4.5 10.2 2.3 8.0 1.1 6.8 6.8 1.1 4.5 3.4 1.1 13.6 19.3 14.8 100.0

2 1

1 1

1 1

1 2 1 1 1 2 5 5 5 28

1 1

1 2 1 8

3 4 3 16

2 2 11

Lao PDR = Lao Peoples Democratic Republic, PRF = Poverty Reduction Cooperation Fund. Source: Regional and Sustainable Development Department.

Table A4.13: Approved Amounts of PRF Regional Window Technical Assistance, by Country, 20022007 ($000)
Country 2002 2003 Afghanistan Bangladesh 350 830 Cambodia 479 1,025 1,250 800 Kyrgyz Republic Lao PDR 150 150 140 Mongolia 250 Nepal 200 835 1,370 Pakistan 230 64 1,930 800 Republic of the Marshall Islands 300 Sri Lanka 800 400 500 600 Tajikistan 800 950 Uzbekistan 600 Viet Nam 350 1,273 1,520 2,650 Regional 1,400 2,355 1,825 3,355 1,050 Subregional 50 1,350 1,200 3,310 2,800 Total 2,659 7,367 13,559 15,030 7,360 Lao PDR = Lao People's Democratic Republic, PRF = Poverty Reduction Cooperation Fund. Source: Regional and Sustainable Development Department. 2004 1,560 420 500 830 2,374 2005 2006 2007 Total 1,560 1,600 4,054 830 2,814 250 2,405 3,024 300 2,300 1,750 600 5,793 9,985 8,710 45,974 % 3.4 3.5 8.8 1.8 6.1 0.5 5.2 6.6 0.7 5.0 3.8 1.3 12.6 21.7 18.9 100.0

Appendix 4

57

Table A4.14: Approved Number and Amounts of PRF Regional Window Technical Assistance, by Country, 20022007 ($000)
Country Afghanistan Bangladesh Cambodia Kyrgyz Republic Lao PDR Mongolia Nepal Pakistan Republic of the Marshall Islands Sri Lanka Tajikistan Uzbekistan Viet Nam Regional Subregional Total 20022007 Number Amount 2 1,560 4 1,600 9 4,054 2 830 7 2,814 1 250 6 2,405 6 3,024 1 300 4 2,300 3 1,750 1 600 12 5,793 17 9,985 13 8,710 88 45,974 % Number 2.3 4.5 10.2 2.3 8.0 1.1 6.8 6.8 1.1 4.5 3.4 1.1 13.6 19.3 14.8 100.0 Amount 3.4 3.5 8.8 1.8 6.1 0.5 5.2 6.6 0.7 5.0 3.8 1.3 12.6 21.7 18.9 100.0

Lao PDR = Lao People's Democratic Republic, PRF = Poverty Reduction Cooperation Fund. Source: Regional and Sustainable Development Department.

Table A4.15: Approved Number of NPRS Technical Assistance, by Sector, 20012007

Sector 2001 2002 2003 2004 2005 2006 2007 Total % Agriculture and Natural Resources 1 1 5.3 Education Energy Finance 1 1 5.3 Health, Nutrition and Social Protection 1 1 2 10.5 Industry and Trade Law, Economic Management, and Public Policy 1 3 4 4 3 15 78.9 Transport and Communications Water Supply, Sanitation, and Waste Management Multisector Total 2 3 5 4 5 19 100.0
NPRS = Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies. Source: Regional and Sustainable Development Department.

58

Appendix 4

Table A4.16: Approved Amounts of NPRS Technical Assistance, by Sector, 20012007 ($000)
Sector Agriculture and Natural Resources Education Energy Finance Health, Nutrition, and Social Protection Industry and Trade Law, Economic Management, and Public Policy Transport and Communications Water Supply, Sanitation, and Waste Management Multisector Total 2001 2002 2003 2004 2005 2006 2007 Total 150 150 % 2.2

700 570 300

700 870

10.1 12.6

50

612

819 1,800 1,927

5,207

75.2

620

612

1,119 1,800 2,777

6,927 100.0

NPRS = Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies. Source: Regional and Sustainable Development Department.

Table A4.17: Approved Number and Amounts of NPRS Technical Assistance, by Country, 20012007 ($000)
Sector Agriculture and Natural Resources Education Energy Finance Health, Nutrition and Social Protection Industry and Trade Law, Economic Management, and Public Policy Transport and Communications Water Supply, Sanitation, and Waste Management Multisector Total 20012007 Number Amount 1 150 % Number 5.3 Amount 2.2

1 2 15

700 870 5,207

5.3 10.5 78.9

10.1 12.6 75.2

19

6,927

100.0

100.0

NPRS = Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies. Source: Regional and Sustainable Development Department.

Appendix 4

59

Table A4.18: Approved Number of PRF Regional Window Technical Assistance, by Sector, 20022007
Sector Agriculture and Natural Resources Education Energy Finance Health, Nutrition, and Social Protection Industry and Trade Law, Economic Management, and Public Policy Transport and Communications Water Supply, Sanitation, and Waste Management Multisector Total 2002 2003 2004 2005 2006 2007 Total 2 7 5 2 16 1 1 2 1 5 2 2 4 1 4 1 6 1 1 5 2 2 11 2 2 6 1 8 1 7 5 1 2 1 1 11 27 4 4 9 88 % 18.2 5.7 4.5 6.8 12.5 2.3 30.7 4.5 4.5 10.2 100.0

16

1 2 25

2 6 28

PRF = Poverty Reduction Cooperation Fund. Source: Regional and Sustainable Development Department.

Table A4.19: Approved Amounts of PRF Regional Window Technical Assistance, by Sector ($000)
Sector Agriculture and Natural Resources Education Energy Finance Health, Nutrition, and Social Protection Industry and Trade Law, Economic Management, and Public Policy Transport and Communications Water Supply, Sanitation, and Waste Management Multisector Total 2002 2003 1,705 450 750 300 750 2,612 800 2004 3,590 400 1,550 2,320 2005 2,450 950 1,150 1,150 1,435 2006 2007 Total 1,050 8,795 800 2,600 2,700 600 2,500 1,040 5,245 750 1,800 500 570 1,000 7,360 13,550 1,650 % 19.1 5.7 5.9 5.4 11.4 1.6 29.5 3.6

150

2,159 350

3,595

3,385

2,659

7,367

550 800 1,554 3,710 13,559 15,030

1,920 4.2 6,264 13.6 45,974 100.0

PRF = Poverty Reduction Cooperation Fund. Source: Regional and Sustainable Development Department.

60

Appendix 4

Table A4.20: Approved Number and Amounts of PRF Regional Window Technical Assistance, by Sector, 20022007 ($000)
Sector Agriculture and Natural Resources Education Energy Finance Health, Nutrition and Social Protection Industry and Trade Law, Economic Management, and Public Policy Transport and Communications Water Supply, Sanitation, and Waste Management Multisector Total
PRF = Poverty Reduction Cooperation Fund. Source: Regional and Sustainable Development Department.

20022007 Number Amount 16 8,795 5 2,600 4 2,700 6 2,500 11 5,245 2 750 27 13,550 4 1,650 4 1,920 9 6,264 88 45,974

% Number 18.2 5.7 4.5 6.8 12.5 2.3 30.7 4.5 4.5 10.2 100.0 Amount 19.1 5.7 5.9 5.4 11.4 1.6 29.5 3.6 4.2 13.6 100.0

Table A4.21: Approved Number of PRF-PRC Technical Assistance, by Sector, 20032007

Sector Agriculture and Natural Resources Education Energy Finance Health, Nutrition, and Social Protection Industry and Trade Law, Economic Management, and Public Policy Transport and Communications Water Supply, Sanitation, and Waste Management Multisector Total 2003 2004 2005 2006 2007 Total 2 1 3 1 1 1 3 1 7 5 1 5 1 1 1 1 1 3 4 1 1 6 1 1 1 18 % 16.7 22.2 5.6 5.6 33.3 5.6 5.6 5.6 100.0

PRF-PRC = Poverty Reduction Cooperation Fund (People's Republic of China Window). Source: Regional and Sustainable Development Department.

Appendix 4

61

Table A4.22: Approved Number of PRF-PRC Technical Assistance, by Sector, 20032007 ($000)
Sector 2003 Agriculture and Natural Resources 800 Education Energy Finance Health, Nutrition, and Social Protection 800 Industry and Trade Law, Economic Management, and Public Policy 910 Transport and Communications Water Supply, Sanitation, and Waste Management 400 Multisector Total 2,910 2004 900 500 1,000 2005 2006 2007 Total 1,700 1,800 1,000 800 65 1,575 1,000 400 1,000 9,275 % 18.3 19.4 10.8 8.6 17.0 10.8 4.3 10.8 100.0

1,300

300 1,000

300

3,700

1,000 2,600

65

PRF-PRC = Poverty Reduction Cooperation Fund (Peoples Republic of China Window). Source: Regional and Sustainable Development Department.

Table A4.23: Approved Number and Amounts of PRF-PRC Technical Assistance, by Sector ($000)
Sector Agriculture and Natural Resources Education Energy Finance Health, Nutrition, and Social Protection Industry and Trade Law, Economic Management, and Public Policy Transport and Communications Water Supply, Sanitation, and Waste Management Multisector Total 20032007 Number Amount 3 1,700 4 1 1 6 1 1 1 18 1,800 1,000 800 1,575 1,000 400 1,000 9,275

PRF-PRC = Poverty Reduction Cooperation Fund (Peoples Republic of China Window). Source: Regional and Sustainable Development Department.

62

Appendix 4

Table A4.24: Approved Number and Amounts of NPRS Technical Assistance, by TA Type ($000)
ADB ADTA RETA Total % of Total Approval ADTA- ADTA- RETA- RETAYear Number Amount Number Amount Number Amount Number Amount Number Amount 2001 1 570 1 50 2 620 50.0 91.9 50.0 8.1 2002 2 111 1 500 3 612 66.7 18.2 33.3 81.8 2003 3 419 2 700 5 1,119 60.0 37.4 40.0 62.6 2004 1 300 3 1,500 4 1,800 25.0 16.7 75.0 83.3 2005 4 2,627 1 150 5 2,777 80.0 94.6 20.0 5.4 2006 2007 Total 11 4,027 8 2,900 19 6,927 57.9 58.1 42.1 41.9
ADB = Asian Development Bank, ADTA = advisory technical assistance, NPRS = Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies, RETA = regional technical assistance, TA = technical assistance. Source: Regional and Sustainable Development Department.

Table A4.25: Approved Number & Amounts of PRF Regional Window Technical Assistance, by TA Type ($000)
ADB Approval Year 2002 2003 2004 2005 2006 2007 Total ADTA PPTA Number Amount Number Amount 5 9 19 13 7 53 % 62.5 56.3 76.0 46.4 63.6 60.2 1,209 3,662 10,534 7,215 3,510 26,129 % 45.5 49.7 77.7 48.0 47.7 56.8 RETA Number Amount 3 7 6 10 4 30 % 37.5 43.8 24.0 35.7 36.4 34.1 1,450 3,705 3,025 6,665 3,850 18,695 % 54.5 50.3 22.3 44.3 52.3 40.7 Total Number Amount 8 16 25 28 11 88 2,659 7,367 13,559 15,030 7,360 45,974

1,150

5 %

1,150 %

2002 2003 2004 2005 2006 2007 Total

17.9

7.7

5.7

2.5

ADB = Asian Development Bank, ADTA = advisory technical assistance, PPTA = project preparatory technical assistance, PRF = Poverty Reduction Cooperation Fund, RETA = regional technical assistance. Source: Regional and Sustainable Development Department.

Appendix 4

63

Table A4.26: Approved Number and Amounts of PRF-PRC Technical Assistance, by TA Type ($000)
ADB Approval Year 2003 2004 2005 2006 2007 Total ADTA Number 7 5 5 1 18 Amount 2,910 3,700 2,600 65 9,275 Number 38.9 27.8 27.8 5.6 100.0 % Amount 31.4 39.9 28.0 0.7 100.0

ADB = Asian Development Bank, ADTA = advisory technical assistance, PRF-PRC = Poverty Reduction Cooperation Fund (Peoples Republic of China Window). Source: Regional and Sustainable Development Department.

Table A4.27: Approved Number and Amounts of NPRS Technical Assistance, by Type of Cofinancing ($000)
Joint Exclusive Total % of Total ADB Approval Joint- Joint- Exclusive- ExclusiveYear Amount Number Amount Number Amount Number Amount Number Amount Number 2001 1 570 1 50 2 620 50.0 91.9 50.0 8.1 2002 1 32 2 580 3 612 33.3 5.2 66.7 94.8 2003 4 769 1 350 5 1,119 80.0 68.7 20.0 31.3 2004 1 300 3 1,500 4 1,800 25.0 16.7 75.0 83.3 2005 1 650 4 2,127 5 2,777 20.0 23.4 80.0 76.6 2006 2007 Total 8 2,320 11 4,607 19 6,927 42.1 33.5 57.9 66.5 ADB = Asian Development Bank, NPRS = Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies. Source: Regional and Sustainable Development Department.

Table A4.28: Approved Number and Amounts of PRF Regional Window Technical Assistance, by Type of Cofinancing ($000)
Joint Exclusive Total % of Total ADB Approval Joint- Joint- Exclusive- ExclusiveYear Amount Number Amount Number Amount Number Amount Number Amount Number 2002 3 1,109 5 1,550 8 2,659 37.5 41.7 62.5 58.3 2003 5 1,742 11 5,625 16 7,367 31.3 23.6 68.8 76.4 2004 2 1,110 23 12,449 25 13,559 8.0 8.2 92.0 91.8 2005 9 4,360 19 10,670 28 15,030 32.1 29.0 67.9 71.0 2006 4 3,970 7 3,390 11 7,360 36.4 53.9 63.6 46.1 2007 Total 23 12,290 65 33,684 88 45,974 26.1 26.7 73.9 73.3 ADB = Asian Development Bank, PRF = Poverty Reduction Cooperation Fund. Source: Regional and Sustainable Development Department.

64

Appendix 4

Table A4.29: Approved Number and Amounts of PRF-PRC Technical Assistance, by Type of Cofinancing ($000)
Joint Exclusive Total % of Total ADB Approval Joint- Joint- Exclusive- ExclusiveYear Number Amount Number Amount Number Amount Number Amount Number Amount 2003 7 2,910 7 2,910 100.0 100.0 2004 5 3,700 5 3,700 100.0 100.0 2005 5 2,600 5 2,600 100.0 100.0 2006 2007 1 65 1 65 100.0 100.0 Total 1 65 17 9,210 18 9,275 5.6 0.7 94.4 99.3 ADB = Asian Development Bank, PRF-PRC = Poverty Reduction Cooperation Fund (Peoples Republic of China Window). Source: Regional and Sustainable Development Department.

65

DIRECT AND INDIRECT SUPPORT OF NPRS TECHNICAL ASSISTANCE PROJECTS TO NATIONAL POVERTY REDUCTION STRATEGY DEVELOPMENT

Appendix 5

TA Count 1

TA No. 3781

Country UZB

Title Comprehensive Medium-Term Strategy for Improving the Living Standards of the People of Uzbekistan

Fund Source NPRS

Direct

Indirect

Remarks The TA has been highly useful in placing poverty reduction on the Governments agenda and providing a basis for the development of an I-PRSP with donor support. The TA should be considered as a starting point for the Government in the development and implementation of a PRSP. ADB was an initiator of the actual formulation of the LSS, which formed the basis for the WB and UNDP to continue with I-PRSP preparation. The TA was intended to assist in the recruitment of a poverty consultant at CARM to provide support in the resident missions poverty reduction efforts. Among other tasks, the consultant was to compile appropriate databases and other information on poverty design of stand-alone poverty reduction TA projects including those financed through appropriate poverty reduction funds; formulate poverty reduction components as part of ADBfinanced loan projects; coordinate with development partners with active involvement in poverty reduction programs; and track the implementation of the Second Five-Year Socioeconomic Development Plan, 20012005, and the Poverty Reduction Strategy Paper. The TA was part of a larger, longer-term, and coordinated effort to implement the national poverty reduction strategy, including (i) the strengthening of key coordination mechanisms at GS-CSD; (ii) the promotion of better understanding of and public debate on poverty issues in Cambodia; and (iii) capacity building activities at the line ministries to implement poverty reduction planning and program design.

3955

CAM

Engagement of a Poverty Consultant at the Cambodia Resident Mission (Extension)

NPRS/ PRF

4037

CAM

Dissemination of the National Poverty Reduction Strategy

NPRS

66

TA Count 4

TA No. 4252

Country VIE

Title Support to Poverty Reduction Activities in Viet Nam

Fund Source NPRS/ PRF

Direct

Indirect

4277

PAK

Supporting Poverty Reduction Initiatives in Pakistan

NPRS/ PRF

Remarks The TA was designed to contribute to Viet Nams poverty reduction goal. It conducted activities to support poverty reduction and to strengthen local capacity for analysis, monitoring, project support, policy dialogue, and knowledge management in poverty reduction. The TAs goal was to strengthen the capacity of the Government, in particular the PRSP Secretariat, to monitor and implement the PRSP strategy. The TA output targets were achieved. Regular quarterly and annual monitoring reports on the progress of PRSP implementation were prepared. The Government showed significant ownership of the reports. With its development partners it extensively used the reports to track progress toward PRSP targets. A poverty database was developed, together with a database of research on poverty issues. Through this TA, ADB was able to provide good links between various public and private research institutions. Research results were shared in various academic forums and proved to be useful in policy dialogue, particularly in the consultations on PRSP-II. The TA also helped ADB to provide significant contributions to the preparation of the MTDF 20052010 and the national MDG Report 2005, as well as the draft PRSP-II. The purpose of the TA was to (i) build on work already done to improve instruments and methodologies used to define and monitor the extent and many dimensions of poverty in both its quantitative and qualitative aspects in Sri Lanka, and (ii) strengthen the capacity of the relevant state and other agencies to effectively use these instruments.

Appendix 5

4278

SRI

Poverty Assessment and Information Management

NPRS

TA Count 7

TA No. 4383

Country MON

Title Participatory Poverty Assessment and Monitoring

Fund Source NPRS

Direct

Indirect

Remarks The purpose of the TA was to strengthen the institutional capacity of the Government to monitor and evaluate national poverty reduction programs and to make its poverty reduction measures more effective. The Government intended to ensure that mediumand long-term priorities were clearly defined through a prioritized action plan that included the sequencing and resourcing of the needed actions; that important crosscutting issues such as gender equity drove the design of the plan; and that the plan ws informed by the Governments Strategic Economic Plan, sectoral master plans, and the National Recovery and Reconstruction Plan. In this sense, the 7th NDP was to become the Governments PRSP. The main deliverables of this TA were (i) an evaluation of SPPRED 20032005, emphasizing lessons learned, to aid in the preparation of the next phase of the countrys poverty reduction strategy; (ii) an integrated training program to improve the planning capacity of the interministerial sector working groups and link their work to the national strategy; (iii) a strategy for achieving the country's MDG targets, with a fully costed investment plan; and (iv) the procedures and processes for monitoring strategy implementation, updating the strategy on the basis of implementation experience, monitoring budget flows and revising the costing, and disseminating information on the progress made in achieving the goals.
Appendix 5

4591

MLD

Developing a Results-Oriented 7th NDP

NPRS

4621

AZE

Participatory Strategy Development and Implementation for Achieving the Millennium Development Goals

NPRS

67

68

TA Count 10

TA No. 4627

Country LAO

Title Public Expenditure Planning for National Growth and Poverty Eradication Strategy

Fund Source NPRS

Direct

Indirect

Remarks The TA was designed to contribute to the realization of the PEMSP, a comprehensive public financial management strategy approved by the Government of Lao PDR in November 2005. The TA supported the first component of the PEMSP and the development of the Governments Medium-Term Fiscal Framework and Medium-Term Expenditure Framework. The underlying objective of the TA was to strengthen public expenditure management to enable the Government to successfully integrate national poverty reduction strategies into budgetary priorities and implementation, linking what was desirable with what was affordable and most likely to deliver results for the Governments NGPES. The main expected results and deliverables of the TA for Thua Thien Hu and Quang Tri in the short term included (i) the adoption of results-oriented and strategic socioeconomic development planning; (ii) the adoption of a participatory process in the planning and monitoring of poverty reduction programs; (iii) improved revenue generation; (iv) an increase in the number of SMEs and exports; and (v) improved institutional capabilities to undertake policy analysis, sector studies, and results-based socioeconomic development management. The conference had three principal objectives: (i) to review and exchange experiences on the development of national poverty reduction strategies in the region; (ii) to identify obstacles and challenges facing countries in the design and implementation of their strategies; and (iii) to derive lessons for the future.

Appendix 5

11

4644

VIE

Support to Thua Thien Hu and Quang Tri Provinces for Sustainable Poverty Reduction and Growth Programs

NPRS

12

6006

REG

Regional Conference on National Poverty Reduction Strategies

NPRS

TA Count 13

TA No. 6047

Country REG

Title National Poverty Reduction Strategies in Pacific Developing Member Countries

Fund Source NPRS

Direct

Indirect

14

6120

REG

Developing a Social Protection Index for Committed Poverty Reduction

NPRS/ PRF

Remarks The ultimate goal of the TA was to increase the impact of national development interventions in the Pacific DMCs in favor of Pacific peoples who were disadvantaged, vulnerable, and in the lowest income brackets, and might otherwise be considered relatively poor. The TA supported efforts to increase awareness of and build capacity to assess and understand poverty, discuss poverty, formulate national poverty reduction strategies and incorporate them into national development strategies, finalize poverty partnerships, establish performance indicators for poverty reduction MDGs, and commit to the implementation and monitoring of these indicators in selected Pacific DMCs. The TA formed another significant component of ADBs work on poverty in the Pacific region. It helped both the Pacific countries and ADB to better understand poverty and hardship in the Pacific, to prioritize needs, and to assess possible ways of reducing poverty. The goal of developing the SPI was to help reduce poverty by supporting social protection in the DMCs. The TA resulted in the creation of a robust methodology for (i) defining social protection in each country; (ii) gathering data on target populations and the benefits of social protection following a uniform structure; and (iii) gathering basic data to calculate an SPI for making intercountry comparisons and monitoring achievement. The SPI is a useful tool for conducting policy dialogue and identifying the strengths and weaknesses of programs, for comparing progress on the MDGs, and for raising awareness of the role and impact of social protection. For example, the SPI can help countries understand better their own and comparator countries social protection arrangements, initiate debate on the scope for improving social protection arrangements, and share experiences.

Appendix 5

69

70

TA Count 15

TA No. 6157

Country REG

Title Strengthening Poverty Analysis and Strategies in the Pacific

Fund Source NPRS/ PRF

Direct

Indirect

Remarks The goal of the TA was to assist the Pacific DMCs in developing the capacity to formulate pro-poor strategies and budgets in a participatory manner, thereby enabling them to reduce poverty and achieve progress toward the MDGs. The short- and medium-term objectives of the TA were to enhance capacity and demand, within government and civil society, for the collection, analysis, and effective use of consistent and high-quality data related to poverty and hardship. The TA was aimed at determining how increased connectivity between the GMS countries through infrastructure and communications development could be managed to ensure that the economic and social status of the poor would be significantly enhanced. The immediate objective of the TA was to assess the distribution of benefits and costs of cross-border interactions among different groups, and to identify ways of maximizing the benefits to the poor and minimizing the negative effects. Key outputs and deliverables included (i) quantitative data and qualitative information on the benefits and issues related to cross-border interactions; (ii) recommendations for maximizing the benefits to the poor and minimizing the negative impact; (iii) enhanced national capacity for the collection, processing, and analysis of quantitative and qualitative data; (iv) a better understanding of cross-border livelihood strategies of the poor as complementary inputs to the formulation or modification of national poverty reduction strategies; and (v) recommendations for ADB operations in the provinces covered under this initiative.

Appendix 5

16

6171

REG

Reviewing Poverty Impact of Regional Economic Integration in the Greater Mekong Subregion

NPRS

TA Count 17

TA No. 6176

Country REG

Title Building Capacity for Participatory Approaches to Poverty Reduction in ADB

Fund Source PRF/ NPRS

Direct

Indirect

Remarks The purpose of the TA was to help DMC stakeholders comprehend and successfully employ pro-poor participatory approaches in ADB projects or in strategy development activities (e.g., CSPs, sector development programs, or sector-wide approach loans; sector or other national strategies) and derive lessons for expanded and more effective application of these processes in the future. One of the TAs components was strategy development. The TA was intended to assist the DMCs in integrating and addressing gender issues more consistently and systematically in planning and implementing national poverty reduction strategies and CSPs, and to strengthen the institutional capacity of the womens machinery of the Government for addressing GAD issues. The objectives were to improve the quality of national poverty reduction strategies by identifying and implementing policies and programs that would benefit both men and women and maximize potential benefits for the poor.

18

6177

REG

Mainstreaming Gender into Poverty Reduction Strategies in Four Central Asian Republics

NPRS

Appendix 5

71

72

TA Count 19

TA No. 6242

Country REG

Title Developing New Policy Paradigms for Sustainable Livelihood Protection and Natural Resource Management Among Ethnic Minorities of GMS: A Study of Policies and Their Impacts, Strategies for Change

Fund Source NPRS

Direct

Indirect

Remarks The goal of the TA was to reduce poverty among ethnic minorities and support sound natural resource management in the upland areas of the GMS. The purpose was to enhance understanding among key policy makers and project staff in DMCs and ADB of the impact of key policies on natural resources management and the livelihood of upland communities. Its primary output was to be a comprehensive and analytical report on the nature and impact of the policies pursued by governments and donors, on ethnic minorities living in the region, as well as on the management of land and forest resources. The report would include a set of recommendations on future policy development and advocacy and project design, particularly in relation to ADB projects in the region. It would be a unique advocacy tool for ADB in developing viable pro-poor policy options with governments, and would help ADB to work closely with other development partners to develop coherent policy approaches on critical development issues in the GMS.

Appendix 5

ADB = Asian Development Bank, CARM = Cambodia Resident Mission, CSP = country strategy and program (now the country partnership strategy [CPS]), DMC = developing member country, GAD = gender and development, GMS = Greater Mekong Subregion, GS-CSD = General Secretariat of the Council for Social Development, I-PRSP = interim poverty reduction strategy paper, Lao PDR = Lao Peoples Democratic Republic, LSS = living standards survey, MDG = Millennium Development Goal, MTDF = Medium-Term Development Framework, NDP = National Development Plan, NGPES = National Growth and Poverty Eradication Strategy, NPRS = Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies, NPRS = national poverty reduction strategy, PEMSP = Public Expenditure Management Strengthening Program, PRF = Poverty Reduction Cooperation Fund, PRSP = poverty reduction strategy paper, SME = small and medium enterprise, SPI = Social Protection Index, SPPRED = State Program on Poverty Reduction and Economic Development, TA = technical assistance, UNDP = United Nations Development Programme, WB = World Bank. Sources: Asian Development Bank technical assistance reports, technical assistance completion reports (when available).

Appendix 6

73

COOPERATION FUND IN SUPPORT OF THE FORMULATION OF NATIONAL POVERTY REDUCTION STRATEGIES (NPRS)
A. Introduction

1. This appendix summarizes the performance of NPRS. A number of stand-alone technical assistance (TA) and regional TA (RETA) projects are discussed in the case-study country reports in the previous four appendixes. However, because relatively few stand-alone TA projects were funded through NPRS, a decision was made to review a number of other TA projects with the help of questionnaires and to summarize the results in this appendix. 2. Of 19 NPRS TA projects, five are discussed in the four country studies. Six others were selected for assessment with the use of questionnaires and discussion with mission leaders following a review of the NPRS program. Six TA projects were excluded because of their small size (ADB support amounted to less than $150,000 each). TA 6176-REG: Building Capacity for Participatory Approaches and TA 6177-REG: Mainstreaming Gender were also excluded on the grounds that they were multi-country with limited NPRS input. Eleven TA projects were thus selected for assessment. Their TA numbers are in boldface in Tables A6.1 and A6.2. Table A6.1: List of NPRS Stand-Alone TA Projects
TA No. 3781 Approved Amount ($000) NPRS PRF Total 570 800

Country Project Title Short Name UZB Comprehensive Medium-Term Strategy for Improving Living Standards Improving the Living Standards of the People of Uzbekistan 3955 CAM Engagement of a Poverty Consultant at the Poverty Consultant at CARM 32 79 128 Cambodia Resident Mission 4037 CAM Dissemination of the National Poverty Dissemination of NPRS 80 80 Reduction Strategy 4252 VIE Support to Poverty Reduction Activities in Poverty Reduction Activities 37 73 125 Vietnam 4277 PAK Supporting of Poverty Reduction Initiatives Poverty Reduction Initiatives 32 64 243 in Pakistan 4278 SRI Poverty Assessment and Information Poverty Assessment 350 350 Management 4383 MON Participatory Poverty Assessment and Participatory Poverty 300 300 Monitoring (PPAM) Assessment 4591 MLD Development of a Results-Oriented 7th Results-Oriented 7th National 377 377 National Development Plan Development Plan 4621 AZE Participatory Strategy Development and Achieving MDGs 650 850 Implementation for Achieving the MDGs 4627 LAO Public Expenditure Planning for National Public Expenditure Planning 700 700 Growth and Poverty Eradication Strategy 4644 VIE Support to Hue and Quang Tri Provinces Formulating Sustainable 900 900 for Formulating Sustainable Poverty Poverty Reduction Programs Reduction and Growth Programs AZE = Azerbaijan, CAM = Cambodia, CARM = Cambodia Resident Mission, LAO = Lao Peoples Democratic Republic, MDG = Millennium Development Goal, MLD = Maldives, MON = Mongolia, NPRS = Cooperation Fund in Support of the Formulation of National Poverty Reduction Strategies, PAK = Pakistan, PRF = Poverty Reduction Cooperation Fund, SRI = Sri Lanka, TA = technical assistance, UZB = Uzbekistan, VIE = Viet Nam. Source: Regional and Sustainable Development Department.

74

Appendix 6

Table A6.2: List of NPRS Regional TA Projects

Country Project Title Short Name Interregional Regional Conference on National Poverty Regional Conference Reduction Strategies 6047 Subregional National Poverty Reduction Strategies in Pacific National Poverty 500 500 (FSM, FIJ, Pacific Developing Member Countries Reduction Strategies TON, TUV) 6120 Interregional Developing a Social Protection Index for Social Protection Index 300 300 600 Committed Poverty Reduction 6157 Subregional Strengthening Poverty Analysis and Strategies Strengthening Poverty 400 400 1000 (COO, KIR, in the Pacific Analysis SOL, PNG, TUV) 6171 Subregional Reviewing Poverty Impact of Regional Regional Economic 850 850 (CAM, LAO, Economic Integration in the GMS Integration in GMS THA, VIE) 6176 Interregional Building Capacity for Participatory Approaches Building Capacity for 300 300 600 to Poverty Reduction in ADB Operation Participatory Approaches 6177 Subregional Mainstreaming Gender into Poverty Reduction Mainstreaming Gender 350 350 (AZE, KAZ, Strategies in Central Asia Region KGZ, TAJ) Policies for GMS Ethnic 150 150 6242 Subregional Developing New Policy Paradigms for (LAO, VIE) Sustainable Livelihood Protection and Natural Minorities Resource Management among Ethnic Minorities of GMS AZE = Azerbaijan, CAM = Cambodia, CARM = Cambodia Resident Mission, COO = Cook Islands, FIJ = Fiji Islands, FSM = Federated States of Micronesia, GMS = Greater Mekong Subregion, KAZ = Kazakhstan, KGZ = Kyrgyz Republic, KIR = Kiribati, LAO = Lao Peoples Democratic Republic, MDG = Millennium Development Goal, NPRS = Cooperation Fund in Support of the Formulation of National Poverty Reduction Strategies, PNG = Papua New Guinea, PRF = Poverty Reduction Cooperation Fund, SOL = Solomon Islands, TA = technical assistance, TAJ = Tajikistan, THA = Thailand, TON = Tonga, TUV = Tuvalu, VIE = Viet Nam. Source: Regional and Sustainable Development Department. TA No. 6006 Approved Amount ($000) NPRS PRF Total 50 50

B.

Results

3. Of six questionnaires sent out, two were returnedthose on TA 3781-UZB: Improving Living Standards and TA 4644-VIE: Formulating Sustainable Poverty Reduction Programs. The tentative results for these are included in the analysis in the following sections. 1. TA 3781-UZB: Improving Living Standards

4. The TA supported the preparation of a comprehensive medium-term strategy for improving the living standards of the people of Uzbekistan, particularly the low-income, vulnerable, and socially excluded groups. The TA was rated partly successful in the TA completion report (TCR) because of the limited achievement of outputs under component 2 (statistical). By the Operations Evaluation Departments (OEDs) evaluation criteria (relevance, effectiveness, efficiency, and sustainability), however, the TA would be rated successful, as it was highly relevant, effective (although less efficient because of extended delay in completion), and sustainable (since its outputs/outcomes have been taken up by the Poverty Reduction Strategy Paper produced with World Bank assistance). 2. TA 4644-VIE: Formulating Sustainable Poverty Reduction Programs

5. This TA had three objectives: (i) the adoption of results-oriented, strategic, and participatory socioeconomic development planning by the provinces; (ii) the strengthening of

Appendix 6

75

institutional capability to undertake policy analysis, sector studies, and results-based socioeconomic development management; and (iii) the strengthening of synergy between provincial, national, and subregional economic cooperation initiatives undertaken to stimulate demand for infrastructure use, to reduce poverty. The TA appears to have achieved strong ownership in the Quang Tri and Thua Thien Hu provincial departments of planning and investment, and good support from other provincial departments. Thus, it is rated successful. 3. TA 4621-AZE: Achieving MDGs

6. TA 4621-AZE: Achieving the Millennium Development Goals (MDGs) encountered delays, which affected the implementation of its remaining components. The Ten-Year State Program on Poverty Reduction and Sustainable Development prepared under the TA was submitted to the Government for approval but was not signed. The Government proposed a major change in the scope of the TA that would have led to a new project, using the remaining funds. However, the Governments proposed scope of activities did not meet the NPRS funding criteria and entailed an extension of the TAs implementation period. Moreover, several components of the original TA had yet to be implemented, although the Government was not interested in pursuing their implementation. The remaining activities of the TA were therefore canceled and project implementation was considered closed. 4. TA 4627-LAO: Public Expenditure Planning

7. This TA was reviewed during Operations Evaluation Missions (OEMs) visit to the Lao Peoples Democratic Republic (Lao PDR) and was rated successful. It was entirely funded from NPRS, with a grant of $700,000. The TA was intended to improve the quality of fiscal planning and the capacity of the relevant Ministry of Finance departments and government agencies involved in fiscal planning. It succeeded in developing models for the medium-term expenditure and fiscal frameworks, but not to a level where they could be used by the central government, line ministries, and provinces. However, valuable work was undertaken in relation to the new Budget Law and measurement of fiscal transfers, though these were not within the approved scope of the TA. Training was mainly limited to computer use and did not cover fiscal planning. 5. TA 6047-REG: National Poverty Reduction Strategies in Pacific DMCs

8. The TA was implemented in four Pacific developing member countries (DMCs) (Federated States of Micronesia, Fiji Islands, Tonga, and Tuvalu), with $500,000 in NPRS funding. It was intended to support increased awareness and capacity building for improved assessment and understanding of poverty, discussion of poverty, formulation of national poverty reduction strategies and their incorporation into national development strategies, finalization of poverty partnership agreements, establishment of performance indicators for the poverty reduction MDGs, and commitment to the implementation and monitoring of the indicators in the four countries. The outputs (e.g., a statement of the priorities of the poor, which was intended to provide a perspective of poverty and possible solutions from the viewpoint of the poor) were of variable quality. However, overall the TA achieved most of its objectives and is rated successful (relevant, effective, efficient, and likely to be sustainable). 6. TA 6157-REG: Strengthening Poverty Analysis and Strategies

9. The RETA was intended to (i) enhance capacity in government and civil society to generate and analyze accurate poverty data, (ii) strengthen demand for and ownership of poverty statistics, and (iii) improve coordination of poverty data collection and analysis in the

76

Appendix 6

Pacific region. It was implemented in the Federated States of Micronesia, Fiji Islands, Kiribati, Nauru, Palau, Solomon Islands, and Tuvalu through the South Pacific Commission in Noumea. It focused on the generation of poverty-related data through household income and expenditure surveys (HIESs). The TA is rated successful (relevant, less effective, efficient, and likely to be sustainable). The effectiveness rating was reduced because of the failure to mainstream HIES data into national statistical systems.
C. Relevance, Overall Assessment, and Issues

1. 10.

Relevance

NPRS had nine objectives: (i) (ii) (iii) (iv) (v) (vi) Formulate national poverty reduction strategies, action plans, and implementation mechanisms; Establish monitoring and evaluation systems that ensure the broad participation of civil societies and the private sector in every step of the process; Establish a conceptual framework for analysis; Analyze the impact of public programs and public policies on poverty, and analyze the public expenditure framework in more detail; Assess and rate the levels of governance in the DMCs; Formulate systematic alternative strategies for participatory processes (including stakeholder consultations, participatory poverty assessments, and consultative advocacy); Promote the implementation of national poverty reduction strategies through better identification and selection of relevant projects and programs for poverty reduction; Coordinate external funding and division of labor on the basis of the national poverty reduction strategies; and Strengthen the capacity of staff and other stakeholders for participatory poverty analysis, strategic prioritizing, and sequencing of development investments (e.g., by building on the current ADB poverty reduction briefing and training programs).

(vii)

(viii) (ix)

11. The extent to which the reviewed TA projects coincided with NPRS objectives is summarized in Table A6.3 based on assessments made by project officers or OEM. Overall, it is considered that the program met NPRS objectives at a high level, particularly in relation to the following objectives: (i) formulation of national poverty reduction strategies (objective 1), (ii) establishment of conceptual framework (objective 3), (iii) implementation of national poverty reduction strategies (objective 7), and (iv) strengthening of capacity (objective 9). Little activity was directed toward objective 5 (assessment of governance), and in retrospect it is unclear why this objective was included, as TA projects such as those funded can have little impact on governance, unless this is their overriding objective. All reviewed NPRS TA projects are rated highly relevant or relevant by OEM. Table A6.3: Estimated Responsiveness to NPRS Objectives (Based on Questionnaire Results)
Objective 1. Formulate national poverty reduction strategies, action plans, and implementation mechanisms 2. Establish monitoring and evaluation system 3. Establish a conceptual framework for analysis 3781 UZB 3 2 3 4627 LAO 4644 VIE 2 2 2 6047 REG 2 6120 REG 3 6157 REG 2 2 2 6171 REG 2 3 3 Ave. 2.0 1.3 2.3

Appendix 6

77

3781 4627 4644 6047 6120 6157 6171 UZB LAO VIE REG REG REG REG Ave. Objective 4. Analyze impact of public programs and public policies 3 2 3 3 2 2 2.1 on poverty 5. Assess and rate DMC levels of governance 2 2 0.6 6. Formulate systematic alternative strategies for 2 3 3 3 1.6 participatory processes 7. Promote implementation of national poverty reduction 3 3 3 2 2 1.9 strategies 8. Coordinate external funding and division of labor on 3 2 1 3 1.3 the basis of national poverty reduction strategies 9. Strengthen capacity of staff and other stakeholders 3 3 3 2 3 2.0 Ave. = average, DMC = developing member country, LAO = Lao Peoples Democratic Republic, NPRS = Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies, REG = regional (technical assistance), TA = technical assistance, UZB = Uzbekistan, VIE = Viet Nam. Note: Estimated level of response by TA: > 2.7 = highly responsive, 1.6 to < 2.7 = responsive, 0.8 to < 1.6 = partly responsive, < 0.8 = low response. Source: Results of evaluation questionnaires.

2.

Overall Assessment

12. Overall, the NPRS program has been successful, as summarized in Table A6.4. Apart from TA 4621-AZE: Achieving MDGs, all NPRS TA projects have been successful or highly successful, indicating a success ratio of 88% for the evaluated TA projects. Table A6.4: Summary of TA Ratings against Evaluation Criteria
Short Name TA 3781-UZB: Improving Living Standards TA 4278-SRI: Poverty Assessment TA 4383-MON: Participatory Poverty Assessment TA 4591-MLD: Results-Oriented 7th National Development Plan TA 4621-AZE: Achieving MDGs TA 4627-LAO: Public Expenditure Planning TA 4644-VIE: Formulating Sustainable Poverty Reduction Programs TA 6047-REG: NPRS in Pacific DMCs TA 6120-REG: Social Protection Index TA 6157-REG: Strengthening Poverty Analysis TA 6171-REG: Regional Economic Integration in GMS Overall Rating Rating for Relevance Rating for Effectiveness Rating for Efficiency Rating for Sustainability Overall Rating Relevance 3 Effectiveness 2 Efficiency 1 Sustainability 2 Overall S

2 3 2 3 2 2

2 2 2 3 1 2

2 2 2 3 2 2

1 2 2 2 2 3

U S S S HS S S

Unweighted Average Score = 2.1 Successful

3 = Highly Relevant, 2 = Relevant, 1 = Partly Relevant, 0 = Irrelevant 3 = Highly Effective, 2 = Effective, 1 = Less Effective, 0 = Ineffective 3 = Highly Efficient, 2 = Efficient, 1 = Less Efficient, 0 = Inefficient 3 = Most Likely, 2 = Likely, 1 = Less Likely, 0 = Unlikely Highly Successful (HS) > 2.7 Successful (S) 1.6 to < 2.7 Partly Successful (PS) 0.8 to < 1.6 Unsuccessful (U) < 0.8 AZE = Azerbaijan, DMC = developing member country, GMS = Greater Mekong Subregion, LAO = Lao Peoples Democratic Republic, MDG = Millennium Development Goals, MLD = Maldives, MON = Mongolia, REG = regional (technical assistance), SRI = Sri Lanka, TA = technical assistance, UZB = Uzbekistan, VIE = Viet Nam. Source: Operations Evaluation Mission estimates.

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Appendix 6

3.

Issues

13. Since several of the TA projects have been discussed in the case-study country appendixes, their specific issues are not repeated in this appendix. However, a few general issues are discussed below. 14. NPRS Objectives. The NPRS objectives were mainly useful and relevant to the development and implementation of national poverty reduction strategies, apart perhaps from the assessment of governance (objective 5). However, it is uncertain whether such detailed and specific objectives are desirable or necessary for such a fund. In the view of OEM, a more limited set of objectives would have been sufficient, perhaps supported by examples of the nature of support that was envisaged, in which the detail currently in the objectives could have been included. 15. Sector-Specific Trust Funds. Perhaps the key question raised by NPRS in the context of the overall SES analysis is whether there was benefit to defining NPRS as a separate fund from PRF, given that NPRS did predate PRF by a few months. Three stand-alone TA projects and three RETA projects received funding from both sources, implying that they were relevant to both sets of objectives. All NPRS TA projects could have been funded by PRF, since the NPRS TA projects are actually a subset of national poverty reduction efforts. In addition, NPRS is largely supported by the World Bank/International Monetary Fund, making it difficult for ADB to contribute to core NPRS activities except in a limited number of countries such as Nepal and Kyrgyz Republic. A unified fund may then have been preferable. Although the management of the two funds is concentrated within the Regional and Sustainable Development Department (RSDD), no significant benefit is seen to the separation of the funds, while, at least to some degree, the separation of the funds constrains management, e.g., by requiring that the TA projects that are defined meet the objectives of one fund. A unified fund that included the objective of supporting the preparation and implementation of national poverty reduction strategies would have covered all NPRS TA projects. 16. TA Duration. In common with many PRF TA projects, several TA projects funded by NPRS had implementation periods that were too brief to allow maximum benefits to be derived. According to the project officer for TA 3781-UZB: Improving Living Standards, the 1-year implementation period (as originally envisaged) is not sufficient for the achievement of all the goals of the TA. 1 At least 23 years with intermittent inputs would be required to accommodate the evolving needs of the Government and take into account other donors support. Donor support should also be properly coordinated at the TA formulation stage so that the role of each donor can be clearly defined. Under TA 6157-REG: Strengthening Poverty Analysis, an overly ambitious timeline for the delivery of TA outputs reduced the quality of the final poverty analysis. Insufficient time and resources for the management of the TA (particularly the travel budget) resulted in loss of momentum during various stages of the TA. This was true for both ADB and the implementing agency.

According to the TCR, the TAs original completion date of 31 December 2002 needed to be extended by 5 years because of: (i) the delayed signing of the TA letter and the contract with the consultant (Townland Consultants International Ltd., Hong Kong, China); (ii) the delayed establishment of the Governments interministerial committee and sectoral working groups; (iii) constrained access to statistical data for poverty analysis; and (iv) slow progress in formulating the strategy owing to poor coordination among the sectoral working groups.

Appendix 7

79

CONTRIBUTION OF NPRS AND PRF TECHNICAL ASSISTANCE TO FUND OBJECTIVES Table A7.1: Contribution of NPRS TA Projects to NPRS Objectives at Design Stage (%)
NPRS Objective 1. Formulate national poverty reduction strategies, action plans, and implementation mechanisms; 2. Establish M&E systems that ensure the broad participation of civil societies and the private sector at every step of the process; 3. Establish a conceptual framework for analysis; 4. Analyze the impact of public programs and public policies on poverty, and analyze the public expenditure framework in more detail; 5. Assess and rate DMC levels of governance; 6. AZE 100 CAM 0 LAO 0 MLD 100 MON 100 PAK SRI 0 0 UZB 100 VIE 50 SUB- INTERREG REG 80 33 AVE 51

100

50

100

100

100

100

100

100

80

67

82

100 100

50 100

100 100

100 100

100 0

100 0

100 100

100 100

100 50

40 60

33 33

84 68

100

50

52

Formulate systematic 100 0 0 100 100 0 0 100 50 80 100 57 alternative strategies for participatory processes; 0 100 100 100 0 100 100 100 100 60 33 72 7. Promote the implementation of national poverty reduction strategies through better identification and selection of relevant projects and programs supporting poverty reduction; 0 50 0 0 0 0 100 100 0 0 0 23 8. Coordinate external funding and division of labor on the basis of the national poverty reduction strategies; 9. Strengthen the capacity 100 50 100 100 100 100 100 100 100 80 67 91 of staff and other stakeholders for participatory poverty analysis, strategic prioritizing, and sequencing of development. ADB = Asian Development Bank, AVE = average, AZE = Azerbaijan, CAM = Cambodia, DMC = developing member country, INTER-REG = inter-regional (technical assistance), LAO = Lao Peoples Democratic Republic, MLD = Maldives, M&E = monitoring and evaluation, MON = Mongolia, NPRS = Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies, PAK = Pakistan, PRS = poverty reduction strategy, SRI = Sri Lanka, SUB-REG = subregional (technical assistance), TA = technical assistance, UZB = Uzbekistan, VIE = Viet Nam. Source: Operations Evaluation Mission estimates.

80

Appendix 7

Table A7.2: Contribution of NPRS TA Projects to NPRS Objectives at Completion (%)

NPRS Objective 1. Formulate national poverty reduction strategies, action plans, and implementation mechanisms; 2. Establish M&E systems that ensure the broad participation of civil societies and the private sector at every step of the process; 3. Establish a conceptual framework for analysis; 4. Analyze the impact of public programs and public policies on poverty, and analyze the public expenditure framework in more detail; 5. Assess and rate DMC levels of governance; 6. Formulate systematic alternative strategies for participatory processes (including stakeholder consultation); 7. Promote the implementation of national poverty reduction strategies through better identification and selection of relevant projects and programs supporting poverty reduction; 8. Coordinate external funding and division of labor on the basis of the national poverty reduction strategies; 9. Strengthen the capacity of staff and other stakeholders for participatory poverty analysis, strategic prioritizing, and sequencing of development. MLD 100 100 MON 100 100 PAK 0 100 UZB 100 0 SUBREG 100 100 INTERREG 0 100 AVE 67 83

100 100

100 0

100 0

100 100

50 50

100 0

92 42

0 100

0 100

50 0

100 0

0 100

0 100

42 67

100

100

100

100

100

83

100

17

100

100

100

100

100

100

100

ADB = Asian Development Bank, AVE = average, DMC = developing member country, INTER-REG = interregional (technical assistance), MLD = Maldives, MON = Mongolia, NPRS = Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies, PAK = Pakistan, PRS = poverty reduction strategy, SUB-REG = subregional (technical assistance), TA = technical assistance, UZB = Uzbekistan. Source: Operations Evaluation Mission estimates.

Appendix 7

81

Table A7.3: Contribution of PRF TA Projects to PRF Objectives at Design Stage (%)
SUB- INTERPRF Objectives AFG BAN CAM KGZ LAO MON NEP PAK PRC RMI SRI TAJ UZB VIE REG REG AVE 1. Assist in policy 50 75 56 0 29 0 50 83 100 100 75 67 100 92 85 94 66 dialogue and strategy formulation on poverty reduction; 2. Develop new 100 100 33 100 71 100 100 100 83 100 100 100 100 100 100 100 93 programs and projects with increased focus on poverty reduction; 3. Monitor and assess 0 50 33 100 57 100 100 83 89 0 75 67 100 83 77 53 67 the poverty reduction impact at the project, meso, and macro levels; 4. Launch pilot poverty 50 25 11 0 0 0 33 17 0 100 0 0 0 0 8 12 16 reduction activities to influence future loan design; 5. Involve broader 100 50 67 100 43 0 83 50 94 100 100 100 100 92 92 71 78 stakeholder consultations at all stages of design and implementation; 0 0 0 0 29 0 83 17 100 0 50 67 0 42 100 82 36 6. Strengthen ADBs role as the regional development bank for Asia and the Pacific to promote poverty reduction. ADB = Asian Development Bank, AFG = Afghanistan, AVE = average, BAN = Bangladesh, CAM = Cambodia, PRC = Peoples Republic of China, KGZ = Kyrgyz Republic, INTER-REG = inter-regional (technical assistance), LAO = Lao Peoples Democratic Republic, MON = Mongolia, NEP = Nepal, PAK = Pakistan, PRF = Poverty Reduction Cooperation Fund, RMI = Republic of the Marshall Islands, SRI = Sri Lanka, SUB-REG = subregional (technical assistance), TA = technical assistance, TAJ = Tajikistan, UZB = Uzbekistan, VIE = Viet Nam. Source: Operations Evaluation Mission estimates.

82

Appendix 7

Table A7.4: Contribution of PRF TA Projects to PRF Objectives at Completion (%)

SUB- INTERPRF Objectives BAN CAM LAO NEP PAK PRC SRI VIE REG REG AVE 1. Assist in policy dialogue and 100 0 0 0 100 100 50 100 0 100 55 strategy formulation on poverty reduction; 2. Develop new programs and 100 100 100 100 100 57 100 100 100 100 96 projects with increased focus on poverty reduction; 3. Monitor and assess the poverty 100 0 100 100 67 86 50 100 100 75 78 reduction impact at the project, meso, and macro levels; 4. Launch pilot poverty reduction 0 0 0 0 33 0 0 0 0 25 6 activities to influence future loan design; 5. Involve broader stakeholder 100 100 100 100 67 100 100 100 0 100 87 consultations at all stages of design and implementation; 6. Strengthen ADBs role as the 0 0 0 0 33 100 100 100 0 100 43 regional development bank for Asia and the Pacific to promote poverty reduction ADB = Asian Development Bank, AVE = average, BAN = Bangladesh, CAM = Cambodia, PRC = Peoples Republic of China, INTER-REG = inter-regional (technical assistance), LAO = Lao Peoples Democratic Republic, NEP = Nepal, PAK = Pakistan, PRF = Poverty Reduction Cooperation Fund, SRI = Sri Lanka, SUB-REG = subregional (technical assistance), TA = technical assistance, VIE = Viet Nam. Source: Operations Evaluation Mission estimates.

Appendix 8

83

OUTCOMES OF COMPLETED NPRS AND PRF TECHNICAL ASSISTANCE Table A8.1: Outcomes of Completed NPRSa Technical Assistance
(Based on TA Completion Reports as of 31 December 2007)
TA Number 3781-UZB Title/Fund Source Preparing a Comprehensive Medium-Term Strategy for Improving the Living Standards of the People of Uzbekistan (NPRS/TASF) Outcome The TA has been highly useful in placing poverty reduction on the Governments agenda and providing a basis for development of an interim poverty reduction strategy paper (I-PRSP) with donor support. The capacity of government staff was developed during the TA and is being strengthened further by other donors. Before this TA, no government staff were assigned to work on PRSP, and the poverty reduction profile within the Government was low. The TA triggered the establishment of interministerial committee and sectoral working groups that continued working on the PRSP document. Through this TA, ADB was able to provide a good link between various public and private research institutions. Research results were shared in various academic forums and proved to be useful in policy dialogue, particularly in the consultations on the Second Poverty Reduction Strategy (PRSP-II) (20062009). The Pakistan Development Forum, which was also supported by this TA, provided an excellent opportunity for ADB staff to engage senior policy makers and other development partners in substantive policy dialogue on poverty and other key issues. The TA consulting team built a good working relationship with the PRSP secretariat and worked very closely with the small team of PRSP staff in what turned out to be an effective learning process for the latter, helping build capacity in poverty analysis, and in monitoring and evaluation. ADB is now regularly consulted by the Government on poverty issues, Millennium Development Goals (MDGs), and social protection. The TA findings were used as basic information in the formulation of the economic growth support and poverty reduction strategy update, and the monitoring of progress toward the MDGs in Mongolia. The TA provided credible and comprehensive information on poverty for decision makers, and served as reference material for researchers and academicians working in the areas of poverty, economics, and social studies. The methodologies introduced through this TA are expected to update and enrich the national poverty database. The TA was successful in delivering its committed outputs. However, an expected outcomeat the completion of the TA, the Government is in a position to draft an action plan that: (i) identifies and ranks actions to be taken during the period covered by the 7th NDP; (ii) aligns external funding resources with the priorities of the 7th NDP; and (iii) sets priorities for the medium-term budgetary framework in such a way that it supports the areas of priority in the 7th NDPdid not fully materialize, as the continuation of a serious budgetary deficit prevented the Government from making the necessary background decisions for the outcome to materialize. The TA helped both the Pacific and ADB to (i) better understand poverty and hardship in the Pacific, (ii) prioritize needs, and (iii) assess possible ways of reducing poverty. Though variable in impact by country, the outputs of the TA have helped to direct future Pacific developing member country (DMC) policies and strategies and future ADB regional and country priorities, strategies, policies, and programs. The output of this TA and of earlier TA projects (RETA 6002, RETA 5097, and TA 3667-PNG) all had a significant impact in setting the priorities for the new Pacific Strategy for 20052009, Responding to the Priorities of the Poor. The output of this TA also led to the design of another regional TA 6157, managed by the Secretariat of the Pacific Community. TA 6157-REG was to continue the same work, to build both demand for a better understanding of poverty, and policies and strategies for dealing with Rating 3

4277-PAK

Support for Poverty Reduction Initiatives in Pakistan (NPRS/PRF/TASF)

4383MON

Participatory Poverty Assessment and Monitoring (NPRS)

4591-MLD

Developing a ResultsOriented 7th National Development Plan (NPRS)

6047REG (FSM, FIJ, TON, TUV)

Preparation of National Poverty Reduction Strategies in Pacific Developing Member Countries (NPRS)

84
TA Number

Appendix 8

Title/Fund Source

6120REG (BAN, INO, MON, NEP, PAK, VIE)

Social Protection Index for Committed Poverty Reduction (NPRS/PRF)

6177REG (AZE, KAZ, KGZ, TAJ)

Mainstreaming Gender into Poverty Reduction Strategies in Four Central Asian Republics (NPRS) Overall Impact Assessment Rating

Outcome poverty. At the same time, TA 6157 was aimed at building both regional and national capacity to assess and formulate required policies and strategies. The Social Protection Index (SPI) is a useful tool for engaging in policy dialogue and for identifying strengths and weaknesses of programs, for comparing progress on the MDGs, and for raising awareness of the role and impact of social protection. For example, the SPI can facilitate a better understanding of a countrys own and comparator countries social protection arrangements, to initiate debate on the scope for improving social protection arrangements and to share experiences. Thus, the SPI can also contribute to regional integration. However, the extent to which countries will make use of this opportunity remains to be seen, although initial feedback from some countries is positive. The TA proved to be an excellent mechanism for mainstreaming gender into poverty reduction strategy in the Central Asian republics. It also contributed to developing gender capacity in each focal point and to mainstreaming ADB policy on gender and development in DMCs.

Rating

2.6

ADB = Asian Development Bank, AZE = Azerbaijan, BAN = Bangladesh, DMC = developing member country, FIJ = Fiji Islands, FSM = Federated States of Micronesia, INO = Indonesia, I-PRSP = interim poverty reduction strategy paper, KAZ = Kazakhstan, KGZ = Kyrgyz Republic, MDG = Millennium Development Goal, MLD = Maldives, MON = Mongolia, NDP = National Development Plan, NEP = Nepal, NPRS = Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies, PAK = Pakistan, PNG = Papua New Guinea, PRF = Poverty Reduction Cooperation Fund, PRSP = Poverty Reduction Strategy Paper, PRSP-II = Second Poverty Reduction Strategy Paper, REG = regional (technical assistance), RETA = regional technical assistance, TA = technical assistance, TAJ = Tajikistan, TASF = Technical Assistance Special Fund, TON = Tonga, TUV = Tuvalu, UZB = Uzbekistan, VIE = Viet Nam. a This list includes NPRS TA projects that were cofinanced by other funds, i.e., TA Special Fund. Note: Overall outcome assessment criteria: > 2.7 = highly positive outcome, 1.6 to < 2.7 = positive outcome, 0.8 to < 1.6 = limited outcome, < 0.8 = no outcome. Sources: Technical assistance completion reports and Operations Evaluation Mission estimates.

Table A8.2: Outcomes of Completed PRFa Technical Assistance

(Based on TA Completion Reports as of 31 December 2007)
TA Number 4303-BAN Title/Fund Source Strengthening Capacities for Poverty Monitoring and Evaluation (PRF) Preventing Poverty and Empowering Female Garment Workers Affected by the Changing International Trade Environment (PRF) The Extent and Impacts of Gender Inequality in Womens Access to Land, Forests, and Water Resources on Poverty Reduction in Lao PDR (PRF) Promoting Pro-poor and Gender Responsive Outcome The intervention was timely, as it covered the entire formulation period of the Bangladesh Poverty Reduction Strategy Paper 20032005 (PRSP 20032005) and thus enabled staff to adjust to the evolving needs for monitoring and evaluation capacity building in real time. The training and capacity-building initiatives under the TA significantly improved the skills of staff at the National Poverty Focal Point (NPFP). Through the TA, poverty and women empowerment concerns were brought into the core discussion on the trade and investment sector. It provided valuable insights for development cooperation and enabled stakeholders with diverse interests to come together to discuss the external and internal environment of the garment industry and define a development plan for the future. The TA also paved the way for tighter collaboration with the private sector and served as a springboard for further ADB initiatives in the trade and investment sector. The TA succeeded in building the capacity of staff from the provincial agriculture and forestry office and the district agriculture, forestry, and environment office in participatory methods of development research. It also increased the awareness of staff of the negative outcomes of sudden disruptions in ethnic economic systems and cultures. However, it was not as effective in achieving its objective of influencing policy making and programming. The capacity and technical skills of partner NGOs and CBOs were improved. There was positive impact on gender and social inclusion in the Rating 3

4131-CAM

4339-LAO

4353-NEP

Appendix 8

85

TA Number

Title/Fund Source service Delivery Project (PRF)

4015-PAK

Enhancing Capacity for Resource Management and Poverty Reduction in Punjab (PRF)

4277-PAK

4319-PAK

Supporting of Poverty Reduction Initiatives in Pakistan (NPRS/PRF/TASF) Determinants and Drivers of Poverty Reduction and ADBs Contribution in Rural Pakistan (PRF) Fund for Strategic Policy Conferences and Studies for Poverty Reduction (PRF)

Outcome CBOs and income generation benefits to members through quick income-generating schemes. The Department of Women Development (DWD) and its field offices were able to adopt new approaches to improving the livelihoods of poor and disadvantaged communities. The mandate of DWD to mainstream gender concerns into its operations by experimenting on useful tools and approaches that can be replicated was also greatly improved. However, delays in fund flow for TA activities diminished the TAs impact for poor and marginalized households and reduced the number of social mobilization activities of partner NGOs and CBOs for target beneficiaries. The TA strongly supported the actions required under the policy matrix of the Punjab Resource Management Program (PRMP), and its outputs have helped the Government of Punjab fulfill the second tranche conditions of the first subprogram of the PRMP. The Medium-Term Budgeting Framework (MTBF) produced by the TA helped the Government of Punjab prepare its FY2006 budget. There is greater awareness among the departments of the Government of Punjab of the salient features and uses of the MTBF process. A poverty-focused investment strategy prepared under the TA helped the Government in identifying the development needs of six key sectors for the first time. Other studies produced under the TA provided a good situation analysis of development in key sectors, as well as recommendations on how to monitor developments in these sectors. See Table A8.1.

Rating

4200-PRC

4215-PRC

Safe Drinking Water and Sanitation for the Rural Poor (PRF)

By focusing on the major determinants and drivers of rural poverty, the TA filled important gaps in the poverty literature and contributed to the PRSP-II preparation process, consequently generating a high degree of ownership in the Government. The TA has made a significant contribution to providing the Government with a better understanding of the qualitative aspects of Pakistans poverty dynamics and the underlying institutional and structural issues that define rural poverty outcomes. The TA succeeded in promoting the involvement of a wide range of stakeholders, including NGOs, in the analysis and dialogue on povertyrelated policy issues. A new type of TA, subsequently referred to as facility TA funding multiple subprojects, was also introduced in the PRC, enhancing ADBs responsiveness to rapidly evolving policy dialogue needs. However, the findings of the 22 studies produced under the TA, though useful and relevant, were not extensively disseminated to a broader audience. Opportunity for wider policy dialogue was thus missed. The TA succeeded in helping the Government in preparing pro-poor rural water supply and sanitation (RWSS) sector policies and a strategic investment framework for integrated RWSS sector development. These policies and strategies focused on defining viable models for financing sustainable pro-poor RWSS sector systems and related institutional capacity building. The TA had a nationwide scope but it gave particular attention to (i) rural poor areas in the western region; (ii) decentralization initiatives; (iii) the harmonization of national procedures and standards; (iv) private sector participation; (v) the integration of the RWSS sector; and (vi) the enhancement of participatory processes, including community consultations, womens involvement, and the incorporation of childrens needs in the design and implementation of RWSS projects and programs that are relevant to the Governments development strategy for the RWSS sector. However, sustainability is limited, as structural changes in the RWSS sector (with more responsibility for village water supply construction now passing through the Ministry of Water Resources) have overtaken TA outcomes.

86
TA Number 4298-PRC

Appendix 8

Title/Fund Source Capacity Strengthening of PRCs National Development Planning Process (PRF)

4308-PRC

Poverty Reduction in Grassland Improvement Program (PRF)

4322-PRC

Poverty Impact of Areawide Road Networks (PRF)

4402-PRC

Heating Supply for Urban Poor in Liaoning province (PRF)

4680-PRC

Alternative Livelihood Options to Facilitate Coal Sector Restructuring (PRF)

4110-SRI

Community Information Services for the Poor (PRF)

Outcome The TA increased the planning capacity of staff of the National Development and Reform Center (NDRC) to help them draft the Governments 5-year plans. The conference and training program were beneficial to staff as these underlined the importance of realistic financial planning, transparent information systems, and regular reporting and monitoring of the implementation process. Emphasis was also placed on local planning and integration of the fiscal system, the financial system, and the incentive framework. Moral hazard issues were also highlighted. The TAs final report covered the PRCs experience with development planning and the planning systems of seven OECD countries. A most useful chapter in the final report was How to Promote Better Planning in China. This chapter was most relevant for policy makers at NDRC, as it clearly spelled out 10 principles for more effective planning. The TA represented the first external evaluation of massive grassland programs and succeeded in providing the Government (through the Development Research Center) with a good understanding of poverty in grassland areas, where many of the countrys poor reside. In particular, it identified the impact (in some cases adverse) of these programs on the poor. The Governments concerns related to the improvement of the environmental management of the grasslands (through its Grassland Improvement Program) as well as the achievement of sustainable rural livelihoods were addressed through this TA. Moreover, the TA helped the Development Research Center to assess the situation and develop policy proposals for reforms in the Grassland Improvement Program under the 11th Five-Year Program. The TA promoted the integrated planning of the overall road network and heightened awareness of the need for greater interagency coordination in the PRC. The approaches developed under the TA are workable, userfriendly, and supported by the Ministry of Communications. However, ownership of the TAs outputs for use in planning activities at the provincial level was limited and the outputs have not been promoted by ADB in its ongoing PPTA projects. The TA succeeded in developing a basis for commercializing district heating in Liaoning province through (i) comprehensive heating assistance programs for the urban poor; (ii) a system for monitoring, supervising, and evaluating implementation; and (iii) an action plan for the implementation of pro-poor national heating tariff guidelines and improved heating tariff collection. The TAs sustainability is assured because the EA has a high level of ownership, and the action plan is expected to be implemented within the timeline. Through the TA, a policy for unemployment in Henan province in PRC was formulated to assist the provincial government in: (i) developing alternative economic activities, and (ii) mitigating the social and environmental impact of the closure of small coal mines in a city with decreasing coal reserves. The policy (Administrative Order Number 81, issued in August 2007) had a positive impact on unemployed persons through (i) employment in medium and large enterprises, (ii) participation in a national social security scheme, (iii) provision of special assistance to poor family members for attendance at vocational training, (iv) provision of small credit for small business and training, and (v) establishment of business incubators. The TA succeeded in creating a broader awareness among Sri Lankas poor of affordable and effective ways of gaining access to vital information through information and communication technology. The pilottesting of community information centers generated wider awareness and improved skills in the use of information and communication technology among the target groups (2,000 poor and disabled people in Gampaha and Ratnapura districts). However, the impact of the TA would have been greater if more interactive, participatory, and demand-based information services had been provided to meet the essential needs of the poor.

Rating 3

Appendix 8

87

TA Number 4567-SRI

Title/Fund Source Sri Lanka Post-Tsunami Needs Assessment and Preparation for Emergency Assistance Implementation Strategies (PRF) Transport Services Networks for the Poor (PRF)

4028-VIE

4453-VIE

Supporting the Preparation of the Law on Gender Equality (PRF)

6175-REG (FIJ, VAN)

Making Resource Allocation Pro-poor and Participatory in the Pacific (PRF)

6073-REG Developing Tools for (PAK, PRC, Assessing the VIE) Effectiveness of ADB Operations in Reducing Poverty (PRF)

6109-REG NGO Partnerships for (AFG, AZE, Poverty Reduction BAN, BHU, (PRF) CAM, COO, FSM, INO, KIR, KGZ, LAO, MLD, MON, NAU, NEP, PAK, PNG, PRC,

Outcome The joint needs assessment and implementation strategies prepared under the TA proved highly useful in assessing the damage caused by the 2004 tsunami and in enhancing the reach and impact of planned emergency assistance related to the post-tsunami reconstruction program. In addition, strategies for speedy, transparent, and participatory delivery of emergency assistance were also prepared to assist affected people in rebuilding their lives. The methodology for prioritizing transport investment from a network perspective and the requisite number of indicators for improving mobility for the rural poor in Viet Nam that were prepared under the TA were useful to provincial and district officials in Nghe An and Ninh Tuan in prioritizing their rural roads subprojects. The geographic information system maps and the findings of the surveys on transport demand, transport living standards, and transport services presented the needs and requirements of the poor and served as inputs to the provincial governments in their road and transport service planning. The TA assisted in the drafting of Viet Nams Law on Gender Equality, which was passed on 29 November 2006 and took effect on 1 July 2007. The law is one of the critical steps toward the achievement of gender equality and is at present the most comprehensive legal document in the country on gender equality. It provides a common platform for advocacy and action for gender equality advocates in claiming gender equality. The law enables the building of gender-sensitive legal institutions through particular provisions relating to the incorporation of gender equality in the work of state agencies and organizations. The law also provides for the incorporation of gender equality in the development and improvement of legal normative documents and in the work of state agencies. The TA was instrumental as well in supporting the capacity development of the central executive committee of the Viet Nam Womens Union (VWU) and the provincial VWU offices. The process raised awareness of gender equality and rights among the central government, line ministries, provincial governments, and the general public. The TAs impact was limited, as progress was made only in training and providing training materials for NGOs and civil society to assist them in making resource allocation decisions. There was also some limited engagement with government officials, elected officials, and traditional leaders to encourage the use of, and institutionalize, this approach. The TA developed these four analytical tools for policy dialogue, economic analysis, and poverty impact monitoring and assessment at project level: (i) computable general equilibrium (CGE) models, (ii) poverty predictor models (PPMs), (iii) poverty predictor pilot surveys (PSs), and (iv) a poverty reduction integrated simulation model (PRISM). The modeling tools proved highly useful not only within ADB but also in DMCs (where they were pilot-tested), as they contributed to policy dialogue, poverty analysis, and impact assessment by providing better information on how policy changes affect the entire economy and the poor. The best route to targeting the poor can therefore be identified in a better way with the help of these tools. The data and models have also been very useful especially in studies conducted by ADBs Economic Research Department. The small grants to NGOs contributed to improving thousands of lives of poor people for a relatively small sum while improving ADBs relations with operational NGOs at community and national level. There was positive impact on increasing ADBs capacity to engage with NGOs. Early links have been created between newly established ADB resident missions and NGO/CSO communities, NGO databases in ADBs resident missions have been updated and enhanced, and increased opportunities to engage with NGO/CSO partners on NGO/civil society issues have emerged. Positive impact was also noted in building the capacity of NGOs to promote better collaboration with governments.

Rating 3

88
TA Number RMI, SAM, SOL, SRI, TAJ, TKM, TON, TUV, VAN, VIE) 6120-REG (BAN, INO, MON, NEP, PAK VIE) 6224-REG (SRI VIE)

Appendix 8

Title/Fund Source

Outcome

Rating

Developing a Social See Table A8.1. 2 Protection Index for Committed Poverty Reduction (NPRS/PRF) Pilot-Testing The TA paved the way for a fuller, more substantive involvement of the 3 Participatory poor in water management. Communities were able to make their own Assessment observations and analyses and improve their projects. By using simple Methodologies for appraisal techniques, the communities were able to identify a broad range Sustainable and of data and factors that are important to project sustainability. Sector Equitable Water Supply professionals were also provided with the opportunity to build their skills and Sanitation Services and experience in participatory development. (PRF) Overall Impact Assessment Rating 2.5 ADB = Asian Development Bank, AFG = Afghanistan, AZE = Azerbaijan, BAN = Bangladesh, BHU = Bhutan, CAM = Cambodia, CBO = community-based organization, PRC = Peoples Republic of China, COO = Cook Islands, CSO = civil society organization, DMC = developing member country, DWD = Department of Women Development, EA = executing agency, FIJ = Fiji Islands, FSM = Federated States of Micronesia, FY = fiscal year, INO = Indonesia, KIR = Kiribati, KGZ = Kyrgyz Republic, Lao PDR = Lao Peoples Democratic Republic, MLD = Maldives, MON = Mongolia, MTBF = Medium-Term Budgeting Framework, NAU = Nauru, NDRC = National Development and Reform Commission, NEP = Nepal, NGO = nongovernment organization, OECD = Organisation for Economic Co-operation and Development, PAK = Pakistan, PNG = Papua New Guinea, PPTA = project preparatory technical assistance, PRF = Poverty Reduction Cooperation Fund, PRMP = Punjab Resource Management Program, PRSP = Poverty Reduction Strategy Paper, PRSP-II = Second Poverty Reduction Strategy Paper, REG = regional (technical assistance), RMI = Republic of the Marshall Islands, RWSS = rural water supply and sanitation, SAM = Samoa, SOL = Solomon Islands, SPI = Social Protection Index, SRI = Sri Lanka, TA = technical assistance, TAJ = Tajikistan, TKM = Turkmenistan, TON = Tonga, TUV = Tuvalu, VAN = Vanuatu, VIE = Viet Nam, VWU = Viet Nam Womens Union. a This includes PRF TA projects that were cofinanced by other funds, i.e., TASF. Note: Overall outcome assessment criteria: > 2.7 = highly positive outcome, 1.6 to < 2.7 = positive outcome, 0.8 to < 1.6 = limited outcome, < 0.8 = no outcome. Sources: Technical assistance completion reports and Operations Evaluation Mission estimates.

Appendix 9

89

COUNTRY REPORT FOR THE PEOPLES REPUBLIC OF CHINA

A. Introduction

1.

PRF in PRC

1. The PRF-PRC window funded 18 country TAs (17 fully funded, as well as $65,000 cofinanced towards another TA) listed in Table A9.1. In addition six RETAs with significant activities in PRC were funded under the PRF regional window (Table A9.2). TA numbers in bold were selected for field evaluation. Table A9.1: PRF-PRC Program
TA No. TA Name 4142 Fighting Poverty through HIV/AIDS on Road Projects in Yunnan Province 4200 Fund for Strategic Policy Conferences and Studies for Poverty Reduction 4215 Safe Drinking Water and Sanitation for the Rural Poor 4222 Policy Study on Poverty Reduction StrategyTrends, Challenges and Future Directions 4298 Capacity Strengthening of PRC's National Development Planning Process 4307 Poverty Reduction in Key Forestry Conservation Programs 4308 Poverty Reduction in Grassland Improvement Program 4322 Poverty Impact of Areawide Road Networks 4402 Heating Supply for Urban Poor in Liaoning Province Source of Completion Funds ($000) Approval Date TA Status Original Revised PRF Others Date 800 Jul-03 Ongoing Jul-07 Jun-08 400 400 150 360 400 400 1,000 500 Oct-03 Nov-03 Nov-03 Dec-03 Dec-03 Completed (w/ TCR) Completed (w/ TCR) Completed (w/o TCR) Completed (w/ TCR) Ongoing Oct-05 Feb-05 May-04 Dec-04 Mar-05 Oct-06 Apr-06 Jun-05 Jun-05 Aug-07 Feb-06 Apr-07 Jun-06

4430 Rural Finance Reforms and Development of 1,000 Aug-07 Microfinance Institutions 4454 Developing a Poverty Monitoring System at a 300 Dec-07 County Level 4580 NGO-Government Partnerships in Village Level 1,000 Apr-05 Ongoing Oct-07 Nov-07 Poverty Alleviation 4566 Poverty Reduction in Coal Mine Areas in Shanxi 500 Feb-05 Completed Dec-05 Apr-07 Province (w/o TCR) 4649 Alternative Energy Supply for Rural Poor in Remote 500 Sep-05 Ongoing Aug-06 Jul-07 Areas 4680 Alternative Livelihood Options to Facilitate Coal 300 Nov-05 Completed Apr-06 Apr-07 Sector Restructuring (w/ TCR) 4401 Rural Income and Sustainable Development 900 Sep-04 Ongoing Dec-06 Dec-07 4694 Urban Poverty Strategy Study 300 Nov-05 Ongoing Sep-07 4933 Facility for Policy Reform & Poverty Reduction 65 900 May-07 Ongoing Jun-09 PRC = Peoples Republic of China, NGO = nongovernment organization, PRF = Poverty Reduction Cooperation Fund, PRF-PRC = Poverty Reduction Cooperation Fund (Peoples Republic of China Window), TA = technical assistance, TCR = TA completion report. Source: Regional and Sustainable Development Department.

Dec-03 Completed Mar-05 (w/ TCR) Apr-04 Completed May-05 (w/ TCR) Oct-04 Completed Sep-05 (w/ TCR) Nov-04 Completed Nov-05 (w/o TCR) Dec-04 Ongoing Mar-07

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Table A9.2: PRF Regional Projects with PRC Activities

Subregion/ Source of Completion Country Funds ($000) Approval Date TA TA Coverage No. TA Name Date Status Original Revised PRF Others PAK, PRC, 6073 Developing Tools for Assessing the 600 Dec-02 Completed Dec-04 Mar-06 VIE Effectiveness of ADB Operations in (w/ TCR) Reducing Poverty 6088 Strengthening and Collection of 25 800 2,320 Dec-02 Ongoing Dec-05 Mar-08 a Economies Purchasing Power Parity Data in ADB DMCs 6109 NGO Partnerships for Poverty 1,000 May-03 Completed Dec-04 Apr-07 28 b Reduction (w/ TCR) Countries CAM, LAO, 6247 HIV/AIDS Vulnerability and Risk Red700 Jul-05 Ongoing Jun-07 Dec-07 PRC, THA uction Among Ethnic Minority Groups through Communication Strategies CAM, LAO, 6243 Strengthening Malaria Control for 750 May-06 Ongoing Apr-08 MYA, PRC, Ethnic Minorities in the GMS THA, VIE 550 24,420 Dec-05 Ongoing Dec-08 Dec-09 CAM, PRC, 6289 GMS: Core Environment Program and c the Biodiversity Conservation Initiative THA, VIE ADB = Asian Development Bank, CAM = Cambodia, PRC = Peoples Republic of China, DMC = developing member country, GMS = Greater Mekong Subregion, HIV/AIDS = human immunodeficiency virus/acquired immunodeficiency syndrome, LAO = Lao Peoples Democratic Republic, MYA = Myanmar, PAK = Pakistan, PRF = Poverty Reduction Cooperation Fund, TCR = TA completion report, THA = Thailand, VIE = Viet Nam. a Bangladesh; Bhutan; Cambodia; Peoples Republic of China; Fiji Islands; Hong Kong, China; India; Indonesia; Republic of Korea; Lao Peoples Democratic Republic; Malaysia; Maldives; Mongolia; Myanmar; Nepal; Pakistan; Papua New Guinea; Philippines; Singapore; Sri Lanka; Thailand; Taipei,China; Viet Nam. b Afghanistan, Azerbaijan, Bangladesh, Bhutan, Cambodia, Peoples Republic of China, Cook Islands, Indonesia, Kiribati, Kyrgyz Republic, Lao Peoples Democratic Republic, Republic of the Marshall Islands, Federated States of Micronesia, Maldives, Mongolia, Nauru, Nepal, Pakistan, Papua New Guinea, Samoa, Sri Lanka, Solomon Islands, Tajikistan, Tonga, Turkmenistan, Tuvalu, Vanuatu, Viet Nam. c Although listed as including PRC, TA 6289 activities were not conducted in PRC. Source: Regional and Sustainable Development Department.

2.

Fieldwork Program

2. The PRF program in PRC has undertaken 18 stand-alone TA projects and six RETA projects with significant activities in the PRC (Tables A9.1 and A9.2). Eleven TA projects and two RETA projects were selected for field evaluation. Of the 11 stand-alone TA projects, TA 4402-PRC: Liaoning Heating was not evaluated in detail. It was intended to lead to an ADB loan project, but eventually the World Bank provided the loan. Discussions were held with the World Bank to assess the contribution made by the TA. The Operations Evaluation Mission (OEM) visited the PRC from 14 October to 2 November 2007. 3. Fieldwork was undertaken in Yunnan province from 24 to 27 October 2007 with visits to two project sites (TA 4142-PRC: HIV/AIDS and Yunnan Roads in Baoshan and TA 4454-PRC: County Poverty Monitoring in Dayao County, Chuxiong City). Two other projects with activities in Yunnan were discussed with their implementing agency or stakeholders (TA 4215-PRC: Safe Drinking Water and RETA6109-REG: NGO Partnerships). The remaining TA projects were discussed with executing agencies and consultants in Beijing or by telephone but were not reviewed in the field.
B. Program Factors

1. 4.

Relationship to National and ADB Strategies

There is an excellent fit between the PRF program taken as a whole and the PRCs

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programs as stated in policy documents and, to some degree, in the 11th Five-Year Plan. However, the latter is written at too high a level to provide specific guidance on individual projects or programs. The main links with PRC policies are summarized in Table A9.3. Out of the 12 TA projects evaluated, 11 have strong links. The weakest is RETA 6088-REG: Purchasing Power Parity Data, since it is focused on 11 cities and will not contribute significantly to a better understanding of rural poverty in the PRC. However, ultimately and if the National Statistics Office can extend the project to cover rural areas, its implications will be significant particularly in the estimation of national poverty lines. Table A9.3: Links between PRF TA Projects and PRC Policies
PRF TA TA 4142: HIV/AIDS and Yunnan Roads TA 4200: Poverty Studies TA 4215: Safe Drinking Water TA 4222: Policy Study on Poverty TA 4298: Strengthening Planning TA 4307: Forestry Conservation TA 4308: Grassland Improvement TA 4430: Microfinance Institutions TA 4454: County Poverty Monitoring Link to PRC Policy/Strategy HIV/AIDS prevention, support to infrastructure in frontier area General contribution to national poverty policy development in LGOP MDG re water supplies, pro-poor infrastructure policy General contribution to poverty policy Balanced and harmonious society, improved infrastructure and development planning Environmental protection and enhancement Arresting desertification Support to rural poor through developing new microfinance models Support to poverty reduction subsidy programs, pro-poor infrastructure planning NGO support to improve services to the poor in remote areas

TA 4580: NGO-Government Partnerships TA 6088-REG: Purchasing Power Parity Ultimately will provide information on PRCs real GDP and its Data distribution TA 6109-REG: NGO Partnerships Infrastructure development through NGOs, gender inclusive planning PRC = Peoples Republic of China, GDP = gross domestic product, HIV/AIDS = human immunodeficiency virus/acquired immunodeficiency syndrome, NGO = nongovernment organization, LGOP = State Council Leading Group on Poverty Alleviation and Development, MDG = Millennium Development Goal, NGO = nongovernment organization, PRF = Poverty Reduction Cooperation Fund, RETA = regional technical assistance, TA = technical assistance. Source: Operations Evaluation Mission estimates.

5. The PRF program in the PRC aligns well with the Asian Development Banks (ADBs) current Country Partnership Strategy (CPS) and the ADB-PRC Poverty Partnership Agreement (PPA) (Table A9.4). In relation to the PPA, the strongest link is with (i) pro-poor economic growth through infrastructure provision (objective 1), and (ii) pro-poor policy analysis (objective 5). In relation to the former, the link is mainly indirect, and is often through the policy link rather than direct support for infrastructure. Nonetheless, the infrastructure link is positive and a useful outcome of PRF. The main contribution in relation to the PPA is in relation to pro-poor policy analysis, in which 9 of the 12 TA projects have made a significant contribution. Two of the remaining three also have significant policy implications (TA 4142-PRC: HIV/AIDS and Yunnan Roads and TA 4430-PRC: Microfinance Institutions) but are not specifically pro-poor. 6. There is good synchronicity in relation to the promotion of equitable and inclusive growth, with 9 of the 12 TA projects meeting one or more of the sub-objectives of ADBs 2006 2008 CSP update for the PRC. TA 4307-PRC: Forestry Conservation and TA 4308-PRC: Grassland Improvement have strong environmental focus, and each tried to bring factors minimizing the negative impact of major government programs on the poor into the policy matrix, with varying success.

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Table A9.4: Links between PRF TA Projects and ADBs PPA and CSP Objectives
TA Number Objective 4142 4200 4215 4222 4298 4307 4308 4430 4454 4580 6088 6109 Poverty Partnership Agreement 1. Pro-poor economic growth through infrastructure provision 2. Support for private sector development 3. Environment and poverty reduction 4. Regional cooperation 5 Pro-poor policy analysis 6. Special initiatives Country Strategy and Program 1. Promoting equitable and inclusive growth i. Intensify the fight against poverty ii. Achieve MDGs, including policy work in such areas as social protection and the strengthening of the role of NGOs in reducing poverty iii. Cooperate with development partners to advance policy dialogue 2. Making markets work better 3. Improving the environment 4. Promoting regional cooperation CSP = country strategy and program (now the country partnership strategy [CPS]), MDG = Millennium Development Goal, NGO = nongovernment organization, PPA = poverty partnership agreement, TA = technical assistance. Source: Operations Evaluation Mission estimates.

2.

Relationship to PRF Objectives

7. The program in the PRC has coincided well with a number of the PRFs six objectives (Table A9.5). The program has been particularly strong in relation to the following objectives: (i) policy dialogue/formulation (objective 1), (ii) stakeholder consultations (objective 5), and (iii) strengthening ADBs role (objective 6), though the last of these has been in a low-key way, through enhancing ADBs reputation with its executing agencies (EAs) and others in the Government. It has also been moderately strong in relation to objective 2: developing new programs/projects. It has had least relevance to the following objectives: (i) monitoring poverty impact (objective 3), and (ii) influencing future loan design (objective 4). In relation to influencing loan design, the program may have more influence in the future with the renewed focus in the

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country program on agriculture and rural development outlined in the 20062008 CSP update 1 and draft the country partnership strategy (20082010). Table A9.5: Estimated Level of Response to PRF Objectives (Based on Questionnaire Results)
TA Number PRF Objective 4142 4200 4215 4222 4298 4307 4308 4430 4454 4580 6088 6109 Ave. 1. Assist in policy dialogue and 2 3 2 3 3 3 3 2 2 3 1 1 2.3 strategy formulation on poverty reduction 2. Develop new programs and 3 1 2 2 2 1 2 2 2 1 2 1.7 projects with increased focus on poverty reduction 3. Monitor and assess the poverty 2 2 3 2 1 0.8 reduction impact at the project, meso, and macro levels 4. Launch pilot poverty reduction 3 2 2 1 1 0.8 activities to influence future loan design 5. Involve broader stakeholder 2 1 3 1 3 3 3 2 3 3 2.0 consultations at all stages of design and implementation 6. Strengthen ADBs role as the 3 2 2 2 3 2 2 2 3 1.8 regional development bank for Asia and the Pacific to promote poverty reduction ADB = Asian Development Bank, Ave. = average, PRF = Poverty Reduction Cooperation Fund, TA = technical assistance. Note: Estimated level of response by TA: > 2.7 = highly responsive, 1.6 to < 2.7 = responsive, 0.8 to < 1.6 = partly responsive, < 0.8 = low response. Source: Results of SES questionnaires.

3.

TA Design

8. The quality of the TA projects design and monitoring frameworks vary. Given the small scale of the projects and the consequently limited resources allocated to their design, most are well designed and are likely to reflect the strong commitment of their proponents. In general, their objectives are sound and attainable, though in the case of TA 4308-PRC: Grassland Improvement, purposes were varied and defined as activities rather than objectives, making it rather difficult to identify the immediate objectives of the TA (except through the goal statement). 4. TA Management

TA management has generally been sound from the perspective of both ADB and the 9. EAs. Most EAs have dedicated adequate resources to supporting their TA projects, reflecting the commitment of the Government to successful project implementation, which is often at a higher level than that found in many Asian countries. From ADBs side, the main weakness has been the frequent change in project officers. Some TA projects have experienced two changes of project officers in a span of 2 or 3 years, thereby weakening supervision. Such changes can cause a hiatus, as the new officer becomes familiar with the TA, and in some cases requires changes in approach. However, without exception, current ADB officers and their motivation and support are highly regarded by EAs and consultants.

ADB. 2005. Country Strategy and Program Update (20062008): Peoples Republic of China. Manila.

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10. A notable feature of the interviews conducted with mission leaders and ADB resident mission and headquarters management was that no significant complaint was mentioned in relation to the PRFs TA process. This is quite different from the feedback gathered in relation to the process of the Japan Fund for Poverty Reduction, where stakeholders often relate the difficulties they experienced with a system that was not harmonized with ADBs normal business and operating practices. 5. Disbursement

11. Disbursement performance has been rather poor. TA projects have usually substantially exceeded their planned implementation periods, and many are not yet fully disbursed, despite the imminent closure of the program in December 2007 (with two TA projects granted extensions until June 2008). Most EAs complained about ADBs reporting systems, particularly those relating to financial claims, which seem to be particularly onerous in PRC, where receipts need to be translated into English. Ways should be found to simplify this process, perhaps by allocating more responsibility to EAs or ADBs resident missions, and instituting spot audits to ensure accurate reporting.
C. Performance Assessment

1.

Relevance

12. Under the ADB-PRC Poverty Partnership Agreement (referred to as the Poverty Reduction Partnership) signed in September 2003, ADB operations in PRC were to focus on (i) pro-poor economic growth through infrastructure provision, (ii) support for private sector development, (iii) environment and poverty reduction, (iv) regional cooperation, (v) pro-poor policy analysis, and (vi) special initiatives (such as PRF). Of the first five areas, PRF activities have focused on environmental issues and pro-poor policy. The two main rural sector TA projects, TA 4307-PRC: Forestry Conservation and TA 4308-PRC: Grassland Improvement, had major environmental policy objectives in relation to the six forest protection programs and the grasslands improvement program, respectively. Both tried to bring poverty to the forefront of analysis and reduce any negative impact of the programs on the poor. A summary of OEMs ratings for each TA against the four evaluation criteria (relevance, effectiveness, efficiency, and sustainability) is provided in Table A9.6. 13. In terms of contribution to policy, TA 4200-PRC: Poverty Studies (contributing to the policy development of the State Council Leading Group on Poverty Alleviation and Development [LGOP]), TA 4298-PRC: Strengthening Planning (increasing transparency and participation at the city level), TA 4430-PRC: Microfinance Institutions (introducing new rural finance providers), TA 4454-PRC: County Poverty Monitoring (pilot-testing poverty measurement at the village level), and TA 4580-PRC: NGO-Government Partnerships (strengthening relationships between nongovernment organizations [NGOs] and local government) have all been strong. 14. Almost all TA projects are rated highly relevant, from the perspective of both the PRC and ADB. The projects have been selected to fit the agendas of both agencies. Only the rating for TA 4215-PRC: Safe Drinking Water is lowered to relevant, because it was overtaken to some degree by the change in institutional structure of the rural water supply and sanitation sector, with water supplies mainly taken over by the Ministry of Water Resources. Overall, the PRF program in PRC is rated highly relevant.

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Table A9.6: Summary of TA Ratings against Evaluation Criteria

Short Name TA 4142: HIV/AIDS and Yunnan Roads TA 4200: Poverty Studies TA 4215: Safe Drinking Water TA 4222: Policy Study on Poverty TA 4298: Strengthening Planning TA 4307: Forestry Conservation TA 4308: Grassland Improvement TA 4430: Microfinance Institutions TA 4454: County Poverty Monitoring TA 4580: NGO-Government Partnerships TA 6088-REG: Purchasing Power Parity Data TA6109-REG: NGO Partnerships Overall Rating Rating for Relevance Rating for Effectiveness Rating for Efficiency Rating for Sustainability Overall Rating Relevance 3 3 2 3 3 3 3 3 3 3 2 2 Effectiveness 2 1 2 2 3 2 1 3 2 3 2 Efficiency 3 2 2 2 2 2 2 2 2 2 2 Sustainability 3 2 1 2 3 2 2 3 2 3 1 Overall HS S S S HS S S HS S HS S S

2 2 2 Unweighted Average Score = 2.27 Successful

3 = Highly Relevant, 2 = Relevant, 1 = Partly Relevant, 0 = Irrelevant 3 = Highly Effective, 2 = Effective, 1 = Less Effective, 0 = Ineffective 3 = Highly Efficient, 2 = Efficient, 1 = Less Efficient, 0 = Inefficient 3 = Most Likely, 2 = Likely, 1 = Less Likely, 0 = Unlikely Highly Successful (HS) > 2.7 Successful (S) 1.6 to < 2.7 Partly Successful (PS) 0.8 to < 1.6 Unsuccessful (U) < 0.8 HIV/AIDS = human immunodeficiency virus/acquired immunodeficiency syndrome, NGO = nongovernment organization, REG = regional (technical assistance), TA = technical assistance. Source: Operations Evaluation Mission estimates.

2.

Effectiveness

15. The TA projects success in meeting their design objectives has been mixed, but most projects are rated effective, and three highly effective. Particularly effective have been some policy-focused TA projects that are pilot-testing activities in the field such as TA 4298-PRC: Strengthening Planning, TA 4430-PRC: Microfinance Institutions, and TA4580-PRC: NGO-Government Partnerships. These should make a valuable contribution to national policy development, whether or not their recommendations are adopted. It is noted that pilot projects are intended to test ideas. Even if the systems tested under a TA are rejected, the TA can still produce a successful outcome. 16. Two projects are rated less effective. The rating for TA 4200-PRC: Poverty Studies was lowered to effective even if the project was considered highly successful by LGOP because it was intended to encourage strategic policy dialogue and research. In practice, the 22 reports produced under the TA, though useful and relevant, were not made widely available but were primarily used to develop LGOPs in-house policy approaches, thus missing a significant opportunity for wider dialogue. TA 4308-PRC: Grassland Improvement was ambitious with four purposes, and perhaps because of this, does not appear to have met any of them at a high level. Overall, the PRF program has been effective. Several EAs commented that the impact of their TA projects was exceptional and that the PRF program often punches above its weight. 3. Efficiency

17. Efficiency has been reasonable, with most TA projects rated efficient. Only TA 4142-PRC: HIV/AIDS and Yunnan Roads is given a highly efficient rating, in part because of

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its excellent monitoring system as well as effective operation of and support to educators in a high proportion of project area villages. Many TA projects have suffered from delayed implementation, slow fund flow, difficult administration, and frequent changes of ADB project officers, limiting their process efficiency. However, in many cases limited implementation efficiency is offset by the projects high potential economic impact, particularly in relation to the development of sound policies for pro-poor development and poverty alleviation. Overall, PRF is considered efficient. 4. Sustainability

Sustainability is likely for most of the TA projects and highly likely for some, particularly 18. where EA ownership is reported (by TA officers) to be high (e.g., TA 4298-PRC: Strengthening Planning and TA 4454-PRC: County Poverty Monitoring). TA 4142-PRC: HIV/AIDS and Yunnan Roads is being strongly supported by the provincial and city governments, with significant replication in Yunnan of parts of the program, and is slated to be replicated in Guangxi under the Swedish Agency for International Development Cooperation (Sida) HIV/AIDS trust fund administered by ADB. The promotion of safe sexual practices in road and construction project hot spots is likely to gain increasing acceptance among transport and construction companies, as well as health services. The microfinance institutions established under TA 4430-PRC: Microfinance Institutions are reported by the Peoples Bank to be flourishing, though still with limited capital (particularly in the case of Guizhou). 19. In other cases, sustainability is more limited, for example with TA 4215-PRC: Safe Drinking Water, where structural change in the water resources and sanitation sector has overtaken the outcomes of the TA (and also reduced its relevance). The aim of the project to develop a three-in-one approach to water supply, sanitation, and education/training could not be achieved. However, the Government has allocated substantial resources to rural water supply development and also to sanitation (to a lesser degree). Limited discussion in the field identified policies focusing on construction of improved schemes for areas without safe or accessible drinking water (with accessibility defined as 800 meters of vertical distance), but beyond construction subsidies, no specific pro-poor policies were evident in Dayao county. 5. Socioeconomic Impact

20. While socioeconomic impact is quite far removed from the policy-oriented TA projects, it is believed that almost all have the potential to make a significant impact. The Government has made poverty alleviation a centerpiece concern, even if this does not translate precisely into the strategic agenda as outlined in the 11th Five-Year Plan. The new agenda of balanced and harmonious development and building a socialist new rurality by implication means that poverty must be reduced or eliminated, and the Government has done much in recent years to move in that direction. The innovative policy analyses and pilot projects that have been conducted under PRF are making a substantial contribution to policy development, which will ultimately translate into positive socioeconomic impact. In several TA projects, the interaction of national, provincial, and city/county governments has been valuable, with policies developed at the grassroots and reaching a wider audience with support from Beijing. Even TA 4142-PRC: HIV/AIDS and Yunnan Roads, with all activities implemented in a remote area of Yunnan, has the potential to make a significant contribution to the PRCs border regions. Similarly, TA 4580PRC: NGO-Government Partnerships has the potential to improve NGO-government relationships and implementation systems, far beyond its base in rural Jiangxi, potentially opening doors to the sustainable development of the domestic NGO sector.

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D.

Overall Assessment, Issues, Lessons, and Recommendations

1.

Overall Assessment

21. The evaluations undertaken varied in depth, with substantial work on some and only EA interviews on others. However, the overall conclusion is that the PRF program in the PRC has been successful, with all TA projects rated either successful or highly successful (Table A5.6). This 100% success rating is above the average for ADB TA projects funded by Technical Assistance Special Fund. Four of the TA projects are rated highly successful (TA 4142-PRC: HIV/AIDS and Yunnan Roads, TA 4298-PRC: Strengthening Planning, and provisionally TA 4430-PRC: Microfinance Institutions and TA 4580-PRC: NGO-Government Partnerships) with the remaining eight TA projects rated successful. TA 6088-REG: Purchasing Power Parity Data was implemented by ADB in 25 economies as the Asia and Pacific input to a wider purchasing power parity (PPP) project implemented by the United Nations Development Programme (UNDP) and the World Bank. OEM interviewed stakeholders in three of the countries (PRC, Lao PDR, and Nepal) and the findings are discussed briefly in the relevant appendixes. Overall, the TA is rated successful, though PPP data collection has not been fully mainstreamed in any of the countries (i.e., the TA has been regarded largely as a one-off exercise). In the future, it may be integrated into data collection for the consumer price index, though with a substantially reduced basket of commodities and services. In the PRC, data collection covered 11 cities and the surveys included the surrounding rural areas. In the future, both in the PRC and in the other participating economies, there is potential to refine poverty lines using PPP data and this could be a significant positive outcome from the TA. No TA was rated less than successfula remarkable achievement. Although ratings may change under a possible future detailed evaluation, there is no doubt that the overall program has made a significant positive contribution, notably in the areas of poverty assessment and policy development. 22. Overall, it is concluded that PRFs TA program in the PRC suggests a forward-looking and innovative approach by the Government. When followed through into national policy, this will herald a new era in the PRCs rural development and contribute to the harmonious rural progress highlighted by the recent Peoples Congress and the 11th Five-Year Plan. 2. 23. 24. Issues

The following sections discuss the main issues relating to the PRF program in the PRC. Poverty in the PRC. Three main issues relate to poverty in the PRC: (i) The definition of povertywhether the official absolute poverty line of CNY693 per person per year extreme poverty level in 2006 is reasonable, or whether it should be increased to make it nearer to the internationally accepted $1 per day (in purchasing power parity terms). In principle, TA 6088-REG: Purchasing Power Parity Data should cast some light on this, but it is focusing on 11 cities and will have little to say about rural poverty. The accuracy of existing poverty estimates. Some researchers believe that the level of poverty is understated, even at the rather low cutoff levels adopted. The measurement of poverty. TA 4454-PRC: County Poverty Monitoring provided information on how non-income indicators can define poverty down to the village and household levels.

(ii) (iii)

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25. Fund Flow. Delayed disbursement from ADB is a common issue facing many TA projects from all funding sources. This was experienced by a majority of ongoing TA projects, though the delays were not considered to have a severe impact on implementation performance in any of the projects. EAs and project consultants also considered ADBs reporting requirements to be onerous and compared them unfavorably with those of other agencies. This issue relates to ADBs financial reporting and liquidation procedures, which require (for example) that every reimbursable item, no matter how small, be translated into English. Ways of streamlining the process need to be studied without sacrificing accountability. Better dissemination of TA implementation systems is also required, as several EAs did not seem to be aware of the prepayment options open to them to fund TA activities. This issue needs to be resolved urgently, perhaps with the use of funds saved on other PRF TA projects. 26. ADB needs to provide clearer, user-friendly, and operational guidance to EAs. Clear EA work plans are desirable to define proposed fund use, together with documented discussions on ADBs liquidation requirements, which often vary from those of the EAs prior international partners. It is important to provide a copy of ADBs new Handbook on TA Disbursements 2 to key staff of the EA and to ensure as far as possible that copies are made available to any replacement staff. Briefings and an informal reference handbook developed by staff in the Peoples Republic of China Resident Mission (PRCM) for one new TA have been well received by executing/implementing agencies. 27. Consultants. Most consultants, both national and international, were considered by the EAs to have performed well. Expatriate consultants brought relevant international expertise to several TA projects, while national consultants provided useful local knowledge and assisted in ensuring that outputs were useful and relevant in the PRC context. In some cases, however, international consultants did not deliver the expected quality of outputs. In the view of OEM (i) it is essential to attempt to select consultant firms with strong technical credentials; (ii) many PRC agencies can be entrusted with the management of national consultants; (iii) ADB could be involved at some level in consultant approval to reduce the potential for wrong selection or nepotism; (iv) EAs should be more closely involved in consultant selection and should at least be asked to comment on all technical proposals (and not just given the winning proposal selected by ADB, as was the case on the two environmental TA projects); and (vi) as far as possible, EAs should be encouraged to make suggestions to improve the TA, and not just included in contract negotiations as a rubber stamp. 28. Data Availability. Many PRF TA reports represent valuable additions to the information databank relating to poverty and a number of technical areas. It is therefore of concern that few of the reports are easily accessible. This is unfortunate, as many researchers would value access to them, including those tasked to evaluate the TA projects. LGOP considers the studies prepared under TA 4200-PRC: Poverty Studies to have been primarily aimed at allowing the institution to develop its knowledge of poverty and lay a foundation for its own policy development. However, according to study 22, the general objective was to increase communication among the government, NGOs, research institutes, and the private sector in poverty reduction and related fields (e.g., employment and social security) so that poverty reduction policies in the PRC could be more effective and sustainable. LGOPs approach to dissemination is not aligned with this or to the purpose of the project defined in the TA paper. TA funds should be considered as public funds and the resulting documents as public goods. Thus, all TA reports should be (i) stored securely in hard and soft copy at the executing agency and ADB, and (ii) made available through both LGOP and ADB. A website of poverty-related
2

ADB. 2008. Technical Assistance Disbursement Handbook. Manila.

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information in PRC would be useful. Study 22 under the TA states that inspired by the results from Component 3, the LGOP has already set up its information center. Besides its routine work of maintaining LGOPs website, the center is planning to build a national platform for collecting, processing and analyzing poverty-related data. It also plans to draw an electronic map to monitor and present the dynamics of poverty across the country. These plans have yet to be accomplished but still represent useful goals. 29. TA Design. Many of the PRC TA projects were proposed by their EAs, which consequently demonstrated strong ownership of the design process. The evaluated TA projects generally had adequate designs. However, in some cases the output to outcome links were not well defined. Under TA 4298-PRC: Strengthening Planning, the specific topics for the substantive studies should have been identified and finalized during TA fact finding instead of merely being mentioned as a generic requirement in the final terms of reference. The TA could thus have been better budgeted and the studies better prepared. TA 4454-PRC: County Poverty Monitoring has developed an effective way of defining poverty levels to the village (or even the household) level. However, the privacy conditions of the census legislation prevent the identification of individual households. A major workshop was held in Beijing in November 2007 to attempt to define future steps in poverty-related statistical data collection. While it is hoped that this exercise will be successful, it would have been preferable to gain more of an understanding of the way forward during the TA or even at the TAs design stage. While improving knowledge of poverty in villages is valuable, more detailed analysis of the potential for and barriers to adoption at the national level would have been beneficial. 30. Follow-Up. It is difficult for ADB to follow up individual TA projects after completion, particularly when they have been managed from ADB headquarters. However, there are benefits to attempting this in some cases. For TA 4200-PRC: Poverty Studies and TA 4222PRC: Policy Study on Poverty follow-up might have assisted LGOP in developing its database of TA studies and poverty-related data. Similarly for the NGOs assisted under TA 6109-REG: NGO Partnerships, follow-up would have been desirable, to assist in meeting TA objectives and in the case of the study conducted by the Womens Federation of Hanzhong, Shaanxi, possibly in disseminating the guidelines developed for gender-inclusive social development to other cities and provinces. 31. Institutional Arrangements. In general, the institutional arrangements made for the PRF TA projects in PRC have been appropriate. This is commendable, given the complexities of the Governments bureaucracy. There are clear advantages to working at several levels, to maximize the impact of TA projects. High-level organizations (e.g., the State Council or other national organizations) should be involved if policy is to be taken up at the central level. However, for realistic policies and processes to be adopted, work needs to be undertaken at the coalface. Several TA projects achieved this range of cooperation, among them, TA 4142PRC: HIV/AIDS and Yunnan Roads, TA 4298-PRC: Strengthening Planning, TA 4307-PRC: Forestry Conservation, TA 4454-PRC: County Poverty Monitoring, and TA 4580-PRC: NGOGovernment Partnerships. Moreover, institutional changes can occur midway through TA implementation as was the case in the implementation of TA 4215-PRC: Safe Drinking Water. The TA was implemented during the transition period of the PRCs rural water supply and sanitation sector (the responsibility for the construction of village water supply facilities now rests with the Ministry of Water Resources). Aware of this, the EA and consultants could perhaps have redesigned the TA to adapt to the changing institutional environment, or at least be more closely engaged in dialogue with other agencies. The more general issue is how projects or TA projects can cope with institutional change, which will require major efforts to sell

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recommendations to the new institution. This is difficult in a hierarchical institutional environment like the PRCs but still needs to be attempted by the TA itself and subsequently by the EA. 32. Monitoring and evaluation (M&E) has not been given high priority in PRF TA projects in the PRC. Two of the 12 TA projects evaluated had an established M&E systemTA 4142PRC: HIV/AIDS and Yunnan Roads and TA 4580-PRC: NGO-Government Partnerships. The former, in the OEMs view, has one of the best-designed and best-implemented project performance management systems of any ADB loan or TA project. This is a remarkable achievement for a small TA. Its key attributes included (i) close involvement with TA management; (ii) the formulation of constructive recommendations after the baseline, many of which were adopted; (iii) use of a control population; (iv) consistency between the baseline and midterm surveys; and (v) good presentation of results. Issues included late commencement (caused mainly by slow ADB contracting processes) and cancellation of the final M&E survey perhaps owing to a budget shortage plus a perception that the main construction period had ended. Despite these issues, the consistent and statistical sampling and analysis and the inclusion of a control population should be emulated in all relevant projects and TA. TA 4580PRC: NGO-Government Partnerships also includes external M&E as a stand-alone component, with an intended output of an objective and externally credible assessment of the efficacy and impact of NGO-implemented projects, including quantitative and qualitative dimensions. Moreover, the TAs pilot test integrates a semi-experimental research design, such that M&E compares NGO-facilitated projects (using two different models of NGO-government cooperation) with a control sample of villages characterized by conventional governmentimplemented projects, and the comparison in turn feeds into evidence-backed policy dialogue. 33. NGOs. Among the RETA projects with activities in the PRC, TA 6109-REG: NGO Partnerships had commendable but ambitious overall objectives, including (i) supporting NGO engagement in strategic and constructive poverty-related discussions with ADB and governments, and (ii) building the capacity of local NGOs to help them work with ADB and governments. The first of these was probably never attainable in the PRC context, where NGOs are small and relationships between NGOs and government are not well established. Nonetheless, cooperation does seem to have been achieved at a local level, enhancing these relationships in all four cases. In practice, a lower-level objective might have been preferable in the PRC. This raises the issue of whether a TA mainly supporting small-scale infrastructure (for three of the four cases) is justified. Certainly four NGOs were assisted through the provision of low-level funding for three infrastructure activities, but this sample is small in relation to the more than 350,000 NGOs that reportedly operate in the PRC. More valuable perhaps would have been a focus on more in-depth collaboration with local government (e.g., through the introduction of participatory processes into small-scale infrastructure planning, construction, and management) with the intended outcome of developing models for such cooperation in the future. 34. Ownership of a TA by the EA and other relevant stakeholders is a significant determinant of success. Almost all PRF TA projects appeared to have demonstrated strong ownership by their EAs and IAs. LGOP is proud of the four TA projects it has implemented (two of which are ongoing) and has made good use of the results/outputs (though it has had a tendency not to disseminate them widely). TA 4142-PRC: HIV/AIDS and Yunnan Roads demonstrates strong ownership at prefecture and provincial levels (also probably at the national level, but OEM was not able to interview Ministry of Health officials in Beijing). Under TA 4307-PRC: Forestry Conservation, the State Forestry Administration demonstrated strong ownership of the project and its outputs (apart from the Chinese version of the final report). In recognition of the insufficiency of 10 (from an original 6) case-study counties for national policy

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development, the number of counties has been expanded to 15 with a local budget allocation of CNY2.0 million. RSDDs draft case study on the TA indicates that the timing of the project made a major contribution during a shift in national policy focus (i.e., to environmental protection and poverty reduction), thus ensuring that research results were able to contribute to national policy development. 35. TA 6088-REG: Purchasing Power Parity Data also enjoys strong support from the National Statistics Office in Beijing. It is developing data that will assist the PRC in establishing its poverty lines, which will be valuable for international comparisons as well. Ownership would be further enhanced if the RETA were able to adopt a more consultative approach to changes in design. Major changes resulting from the work of TA consultants were reportedly imposed on Asia and Pacific countries at a workshop in June 2007 without first being discussed with participating countries. 3 It is acknowledged that multi-country RETA projects pose coordination problems, exacerbated by the RETAs having been part of a far larger TA being undertaken by UNDP. It is nonetheless desirable for TA management to adopt a participatory and, where possible, a consensus approach to implementation systems (in this case relating to data collection) to maintain strong ownership and support for the TA. OEM agrees with the PRC EA that the issue should have been discussed in detail with the countries and, as far as possible, consensus reached before significant changes were imposed midway through the program. TA 6270-REG: Facilitating Knowledge Management for Pro-Poor Policies and Projects provides one positive example of government ownership and ADB responsiveness in the PRC. PRCM coordinated with RSDD to develop, at the request of the Ministry of Finance and LGOP, a short synthesis paper outlining the key findings from selected regional PRF TA projects and implications for the PRC, with the help of a national consultant, who was added to the RETA consultant package. 36. Pro-poor Finance. While the two financial institutions under TA 4430-PRC: Microfinance Institutions have been established and are operating, issues relating to rural finance provision in the two provinces covered by the TA and in the PRC as a whole remain. The institutions reportedly charge up to 25% interest (versus the usual 20%22%). This is too high to support most forms of agricultural production (except perhaps short-term fattening of livestock). Hence, loans are likely to be reserved for family emergencies or larger businesses with other sources of income. The average loan size reported by the Peoples Bank was several thousand yuan, far above the few hundred yuan normally lent to first-time borrowers by organizations such as BRAC or Grameen Bank in Bangladesh. Unless the institutions can develop processes to provide production loans to the poor, they will not meet their poverty reduction objectives. 37. Research Process. The approach taken by TA 4307-PRC: Forestry Conservation of recruiting high-caliber experts from a range of institutions proved to be sound, with the outputs generally accepted by the State Forestry Administration and the Government. RSDDs draft case study suggests that impact was made through the provision of space for stakeholders from different levels to get across their views, argue their perspectives, and suggest changes and new approaches.

Five years after the start of the program, the World Bank and ADB consultants apparently recommended a new approach to data collection, returning to the use of data collected for consumer price index purposes, rather than the special basket that had been designed. At a workshop in June 2007 this change was reportedly imposed on the Asia and Pacific countries without much discussion and despite objection from the countries. Apparently, therefore, much of the work undertaken and data collected in previous phases of the project was largely wasted.

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38. TA Scope. Leaving topics for detailed study under PRF TA projects to be defined during implementation has some advantages, particularly in promoting ownership. However, the lack of assessment of study topics under TA 4298-PRC: Strengthening Planning meant that the TA design was not fully thought through and that the budget was not sufficient to fund the six studies planned. Under TA 4200-PRC: Poverty Studies, commissioning a proportion of the studies may have ensured that the necessary topics were covered. TA 4454-PRC: County Poverty Monitoring appears to have achieved its immediate objectives and developed an effective approach to the definition of poverty using non-income indicators at the county, township, village, and household levels. However, a major change in scope was involved, from a sample survey to a census approach, and the number of counties analyzed was reduced from eight to one. The change in scope was relevant and useful but needed to be documented and further justified. 39. Translation. Most TA projects have done well in the production of reports in Chinese and English. TA projects need to make efforts to finalize their reports at an acceptable level in both languages. 4 At the same time, ADB needs to allow enough funds in TA budgets for adequate translation. 40. Relationship between PRF and DFID. In its early years, DFID is reported not to have been fully satisfied with the performance of the PRF program, giving the fund a level 2 rating (at risk). Improving disbursement performance with reports focusing on outcomes has resulted in a level 4 rating (satisfactory) at last assessment in June 2007. This is a major achievement by the TA projects and PRCM. 3. 41. Lessons

A number of lessons can be derived from the PRF program in PRC: (i) The consensus among ADB mission leaders and management is that, compared with some other trust funds managed by ADB, such as the Japan Fund for Poverty Reduction, PRF funds TA projects that are straightforward in design, implementation, management, and supervision. This is because PRF follows all normal TA processes, which are simple and familiar to all staff. The full delegation of management responsibility to ADB is considered a major positive factor, though regular reporting to the donor country is seen as an important activity that should provide sufficient detail and include information on performance. PRF has made a significant contribution to policy development and poverty reduction in the PRC. To a great degree this reflects the Governments commitment to poverty reduction, which translates into a positive institutional environment and strong support for the initiatives from the TA projects executing agencies. The closure of PRF will leave a significant gap in technical assistance to the PRC in the poverty reduction sector. Given the countrys poverty situation, a successor fund is likely to find strong demand within the PRC. Such a fund would be valuable in expanding some of the pilot initiatives undertaken under the

(ii)

(iii)

On 1922 September 2005, the Seminar on Implementing the Program of Compilation and Translation of Poverty Reduction Literature in China was launched in Nanning, capital city of Guangxi Autonomous Region. The seminar was sponsored by the International Poverty Reduction Centre in China and hosted by the Guangxi Foreign Capital Poverty Reduction Project Management Center.

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(iv)

completed PRF program and in addressing new problems, including the relief of poverty in areas that are hard to reach and those suffering from natural disasters. With the exception of TA 4580-PRC: NGO-Government Partnerships, NGOs have not had a very strong involvement in PRF TA projects. However, where they have been involved, TA outcomes have been strong, suggesting that NGOs can take on stronger roles in future poverty reduction programs, building on the efforts of TA 4580-PRC; NGO-Government Partnerships. Recommendations

4.

A number of general recommendations can be made on the basis of the TA experience 42. in the PRC (project-specific recommendations are not included here): (i) Resident missions could be made responsible for translation into the local language, where required. PRCM staff briefed the executing and implementing agencies before the implementation of each TA and also devised and distributed an informal reference handbook, which proved very useful to EA/IA staff. TA reports are expensive to produce and should be kept in an accessible hard copy and in electronic format to maximize the potential impact of the TA and avoid reinventing the wheel. Any successor fund to PRF must include the PRC. Given the success of the PRC program so far, there is a need to build on that strength and perhaps provide valuable lessons in TA implementation for the region. Although PRC is now a (lower) middle-income country, in absolute terms the number of its poor is among the largest in the region. PRCs innovative approaches to poverty reduction and the development of pro-poor national poverty strategies mean that ADB inputs are likely to be both highly valued and effective. Key areas for support relate to the expanded application of a number of policies and programs resulting from PRF. Examples include work in NGO interactions (TA 4580-PRC: NGO-Government Partnerships), rural microfinance institutions (TA 4430-PRC: Microfinance Institutions), participatory and transparent planning (TA 4298-PRC: Strengthening Planning), and poverty measurement (TA 4454-PRC: County Poverty Monitoring). More work is required in the forestry planning and grasslands/desertification sectors. In HIV/AIDS, there will be an urgent need to develop approaches to the combined TB/AIDS problems related to drug resistance.

(ii)

(iii)

(iv)

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Appendix 10

COUNTRY REPORT FOR THE LAO PEOPLES DEMOCRATIC REPUBLIC

A. Introduction

1.

NPRS/PRF in Lao PDR

1. The NPRS/PRF program in Lao PDR funded eight stand-alone technical assistance (TA) projects and nine regional TA (RETA) projects with significant activities in the Lao Peoples Democratic Republic (Lao PDR) (Tables A10.1 and A10.2). TA projects in bold were selected for field evaluation. Table A10.1: Lao PDR NPRS-PRF Program
Source of Completion Funds ($000) Approval Date TA Status Original Revised TA No. Project Name Date NPRS PRF 4009 Social Protection in the Lao PDR: Issues and 150 Dec-02 Completed Dec-03 Dec-04 Options (w/o TCR) 4108 Integrating the Poor in Regional Trade through 150 May-03 Completed Dec-03 May-04 Standard-Setting for Private Sector Development (w/o TCR) (Phase 1) 4339 The Extent and Impacts of Gender Inequality in 250 May-04 Completed May-06 Dec-06 Womens Access to Land, Forests and Water (w/ TCR) Resources on Poverty Reduction in Lao PDR 4392 Marketing Support of Organic Produce of Ethnic 600 Sep-04 Ongoing Sep-07 Jun-08 Minorities 4406 Capacity Building for Smallholder Livestock 550 Oct-04 Ongoing Dec-06 Jun-08 Systems in Lao PDR 4434 Poverty Reduction Through Land Tenure 974 Nov-04 Ongoing Dec-07 Jul-08 Consolidation, Participatory Natural Resources Management and Local Communities Skills Building 4627 Public Expenditure Planning for National Growth 700 Aug-05 Completed Sep-07 Dec-07 and Poverty Eradication Strategy (NGPES) (w/o TCR) 4787 Revitalizing Community Demand for 140 May-06 Ongoing Apr-08 Apr-08 Immunization Lao PDR = Lao Peoples Democratic Republic, NGO = nongovernment organization, NGPES = National Growth and Poverty Eradication Strategy, NPRS = Cooperation Fund in Support of the Formulation of National Poverty Reduction Strategies, PRF = Poverty Reduction Cooperation Fund, TA = technical assistance, TCR = TA completion report. Source: Regional and Sustainable Development Department.

Table A10.2: PRF Regional Projects with Lao PDR Activities

Subregion/ Source of Funds Country ($000) TA Coverage No. Project Name NPRS PRF Others 6088 Strengthening and Collection of 25 800 2,320 a Economies Purchasing Power Parity Data in ADB DMCs 6109 NGO Partnerships for Poverty 28 1,000 Countriesb Reduction CAM, LAO, 6113 Making Markets Work Better for 385 2,541 VIE the Poor CAM, LAO, 6115 Poverty Reduction in Upland 800 THA, VIE Communities in the Mekong Region through Improved Community and Industrial Forestry CAM, LAO, 6171 Reviewing Poverty Impact of 850 THA, VIE Regional Economic Integration in the GMS Approval Date Dec-02 TA Status Ongoing Completion Date Original Revised Dec-05 Mar-08

May-03 Completed Dec-04 Apr-07 (w/ TCR) Nov-05 Ongoing Dec-06 Aug-07 Aug-03 Completed Oct-04 (w/o TCR) Dec-06

May-04 Completed Dec-05 (w/o TCR)

Jul-07

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Subregion/ Source of Funds Completion Country Date TA ($000) Approval TA Coverage No. Project Name Status Original Revised NPRS PRF Others Date CAM, LAO, 6190 Preventing the Trafficking of 700 Oct-04 Completed Jun-06 Jul-07 THA, VIE Women and Children and (w/o TCR) Promoting Safe Migration in the Greater Mekong LAO, VIE 6242 Developing New Policy Paradigms 150 May-05 Completed Sep-05 Apr-06 for Sustainable Livelihood (w/o TCR) Protection and Natural Resource Management among Ethnic Minorities of GMS: A Study of Policies and their Impacts, Strategies for Change. CAM, LAO, 6243 Strengthening Malaria Control for 750 May-05 Ongoing Jun-07 Dec-07 MYA, PRC, Ethnic Minorities in the GMS THA, VIE CAM, LAO, 6247 HIV/AIDS Vulnerability and Risk 700 Jul-05 Ongoing Jun-07 Dec-07 PRC, THA Reduction Among Ethnic Minority Groups through Communication Strategies ADB = Asian Development Bank, CAM = Cambodia, PRC = Peoples Republic of China, DMC = developing member country, GMS = Greater Mekong Subregion, HIV/AIDS = human immunodeficiency virus/acquired immunodeficiency syndrome, LAO = Lao Peoples Democratic Republic, MYA = Myanmar, NGO = nongovernment organization, NPRS = Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies, PRF = Poverty Reduction Cooperation Fund, TCR = technical assistance completion report, THA = Thailand, VIE = Viet Nam. a Bangladesh; Bhutan; Cambodia; Peoples Republic of China; Fiji Islands; Hong Kong, China; India; Indonesia; Republic of Korea; Lao Peoples Democratic Republic; Malaysia; Maldives; Mongolia; Myanmar; Nepal; Pakistan; Papua New Guinea; Philippines; Singapore; Sri Lanka; Thailand; Taipei,China; Viet Nam. b Afghanistan, Azerbaijan, Bangladesh, Bhutan, Cambodia, Peoples Republic of China, Cook Islands, Indonesia, Kiribati, Kyrgyz Republic, Lao Peoples Democratic Republic, Republic of the Marshall Islands, Federated States of Micronesia, Maldives, Mongolia, Nauru, Nepal, Pakistan, Papua New Guinea, Samoa, Sri Lanka, Solomon Islands, Tajikistan, Tonga, Turkmenistan, Tuvalu, Vanuatu, Viet Nam. Source: Regional and Sustainable Development Department.

2.

Fieldwork Program

2. Seven stand-alone TA projects and four RETA projects were selected for evaluation. Brief field evaluations were undertaken of four TA projects, namely: TA 4392-LAO: Marketing Organic Produce, TA 4434-LAO: Land Tenure, and TA 6190: Trafficking of Women and Children in Bokeo and Luang Namtha, and TA 4406-LAO: Smallholder Livestock Systems sites in Luang Prabang province. The Operations Evaluation Mission (OEM) visited Lao PDR from 10 to 24 November 2007. Other TA projects were discussed with executing agencies and consultants in Vientiane or by telephone but were not reviewed in the field.
B. Program Factors

1.

Relationship to National and ADB Strategies

3. The PRF program in Lao PDR shows strong links to the 6th National Socio-Economic Development Plan for 2006 to 2010, as summarized in Table A10.3. Table A10.3: Links between PRF TA Projects and Lao PDR Policies
No. 4009 4108 4339 4392 Short Name Social Protection Regional Trade Gender Inequality Organic Produce Link to Lao PDR Policy/Strategy Improving quality of life for the poor and vulnerable International integration Reduction of gender inequality (NSEDP VI, page 5) Rural economic growth, poverty reduction in rural communities

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Link to Lao PDR Policy/Strategy Rural economic growth, poverty reduction in rural communities Land allocation is a key strategic program of Ministry of Agriculture and Forestry 4627 Public Expenditure Improved planning and fiscal management under Public Expenditure Management Strengthening Program 6088 Purchasing Power Parity Data Potentially, improved poverty line analysis 6109 NGO Partnerships Model for breakthrough change in education 6171 Regional Economic Integration Improved potential for monitoring impacts of development on poverty 6190 Trafficking Preempting emergence of trafficking of women and children in northern corridor Lao PDR = Lao Peoples Democratic Republic, NGO = nongovernment organization, No. = number, NSEDP VI = 6th National Socio-Economic Development Plan, PRF = Poverty Reduction Cooperation Fund, TA = technical assistance. Source: Operations Evaluation Mission estimates.

Short Name Smallholder Livestock Land Tenure

4. The Asian Development Banks (ADBs) 20072011 Country Strategy and Program 1 (CSP) for Lao PDR retains the same core strategies as those in the CSP for 20032005. Its operational priorities have widened to some degree to encompass capacity development in all the sectors in which it operates. It includes a focus on gender issues, sustainable environmental management, private sector development, and regional integration. Overall, the Lao NPRS/PRF program has aligned well with the CSP, as shown in Table A10.4. All TA projects coincided with at least one core strategy and one operational priority from the 20032005 CSP 2 and its updates. The stand-alone TA projects have focused on two of the four operational priorities rural development and human resource development. Table A10.4: Links between NPRS-PRF TA Projects and ADBs CSP/PPA Objectives
Objective Core Strategies TA Number 4009 4108 4339 4392 4406 4434 4627 6088 6109 6171 6190

1. Monitoring Pro-Poor Sustainable Economic Growth 2. Fostering Inclusive Social Development 3. Good Governance Through Policy and Institutional Development Operational Priorities 1. Rural Development and Market Linkages 2. Human Resource Development 3. Sustainable Environmental Management 4. Private Sector Development and Regional Integration ADB = Asian Development Bank, CSP = country strategy and program, PPA = poverty partnership agreement, PRF = Poverty Reduction Cooperation Fund, TA = technical assistance. Source: Operations Evaluation Mission estimates.

2.

Relationship to PRF Objectives

5. The main focus of the NPRS/PRF program in Lao has been on PRF objectives 1, 2, and 4, with little emphasis on 3 (monitoring), 5 (stakeholder consultations), and 6 (strengthening ADBs role) (Table A10.5). TA 6171-REG: Regional Economic Integration responded to several of the NPRS objectives in a limited wayparticularly the following: (i) formulate national poverty
1 2

ADB. 2006. Country Strategy and Program (20072011): Lao Peoples Democratic Republic. Manila. ADB. 2002. Country Strategy and Program (20032005): Lao Peoples Democratic Republic. Manila.

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reduction strategies, action plans, and implementation mechanisms (objective 1); (ii) establish monitoring and evaluation systems that ensure the broad participation of civil societies and the private sector in every step of the process (objective 2); (iii) establish a conceptual framework for analysis (objective 3); and (iv) strengthen capacities of their staff and other stakeholders (objective 9). Table A10.5: Estimated Level of Response to PRF Objectives (Based on Questionnaire Results)
TA Number PRF Objective 4009 4108 4339 4392 4406 4434 4627 6088 6109 6190 Ave. 1. Assist in policy dialogue and strategy 2 3 2 3 3 1 1.2 formulation on poverty reduction; 2. Develop new programs and projects with 3 3 3 3 3 3 3 2.3 increased focus on poverty reduction; 3. Monitor and assess the poverty reduction 1 2 1 1 0.6 impact at the project, meso, and macro levels; 4. Launch pilot poverty reduction activities to 3 3 3 2 1.2 influence future loan design; 5. Involve broader stakeholder consultations at 2 2 3 1 2 1.1 all stages of design and implementation; 6. Strengthen ADBs role as the regional 2 3 2 0.6 development bank for Asia and the Pacific to promote poverty reduction ADB = Asian Development Bank, Ave. = average, PRF = Poverty Reduction Cooperation Fund, TA = technical assistance. Note: Estimated level of response by TA: > 2.7 = highly responsive, 1.6 to < 2.7 = responsive, 0.8 to < 1.6 = partly responsive, < 0.8 = low response. Source: Results of evaluation questionnaires.

3.

TA Design

6. The design of several PRF TA projects in Lao PDR has in several instances caused problems for TA implementation. Design issues affected both small-scale TA (SSTA) projects, i.e., TA 4009-LAO: Social Protection and TA 4108-LAO: Regional Trade, since the resources allocated appear to have prevented sufficient analysis of the institutional framework in which they would operate, ultimately limiting their usefulness. TA 4627: Public Expenditure did not adequately assess the difficulties of multiple implementing agencies and the institutional capacity to develop and apply medium-term budgeting in Lao PDR but nonetheless represented a useful first step. TA 4339-LAO: Gender Inequality had three purposes and overall appears to have lacked design clarity, ultimately contributing to its early termination. The handicrafts component of TA 4392-LAO: Organic Produce did not recognize the existing well-developed export market for handicrafts from parts of the project area and the need for locally based support. 7. TA 4434-LAO: Land Tenure was integrated with a larger Japan Fund for Poverty Reduction (JFPR) project, the Australian Agency for International Development (AusAID) funded Rural Income Generation project and the United Nations World Food Programme (UNWFP) interventions. While this allowed investment activities, the integration of four interventions complicated management and probably contributed to the failure of the implementing nongovernment organization (NGO) to complete its contracts. It may have been preferable to have implemented one larger JFPR project. TA 4406-LAO: Smallholder Livestock had a single and clear objective as well as providing a link between a concluding project and a forthcoming ADB loan. Because of these factors, it is rated the most successful of the stand-alone PRF TA projects.

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4.

TA Management

8. Lao PDR TA projects are managed from ADB headquarters in Manila. TA success has been, in large measure, a function of the skills and motivation of the project officer. Lao PDR is recognized as lacking strong implementation capacity and often experiencing institutional problems in project implementation. In this context, intensive supervision can be a key factor behind successful implementation. Unfortunately, the supervision of some projects in the early years has not been effective. Examples include TA 4339-LAO: Gender Inequality, TA 4392-LAO: Organic Produce, and TA 4434-LAO: Land Tenure, where insufficient resources were applied to supervision. In these cases, a change in project officer led to improved management but the TA projects will find it difficult to meet their objectives in the remaining implementation period. TA 4406-LAO: Smallholder Livestock has also lacked intensive supervision. However, in this case, the implementing agency is an experienced regional organization with strong experience in the technical area of the TA, which has been completed successfully despite major financial constraints. 5. Disbursement

9. As in other NPRS/PRF countries, many NPRS/PRF TA projects in Lao PDR experienced problems in disbursement. Problems were experienced by TA 4406: Smallholder Livestock, where only the mobilization and inception payments were made and no payment for reimbursable items has so far been made. All subsequent operating costs have been funded by the implementing agency (IA). This TA involves coordination with district agricultural and forestry officers in around 16 districts, causing severe accounting problems. TA 4339-LAO: Gender Inequality also suffered from extreme payment delays, contributing to the closure of the TA before usable outputs had been generated. Financial management problems also affected TA 4434-LAO: Land Tenure, severely contributing to the termination of the contract for the advising NGO. 10. TA 4627-LAO: Public Expenditure has experienced problems with micromanagement by the contracted implementation company and ADB. Requests for approval of workshop budgets, for example, have to originate from the field, pass through the contracting company, then to ADB, with approval following the same path in reverse. This has caused implementation delays and required the local consultant to temporarily fund workshop expenses from his own pocket. However, the TA is assisted by an experienced consulting firm and overall financial management has been adequate.
C. Performance Assessment

1.

Relevance

11. Of the 11 evaluated TA projects, seven are rated relevant and three highly relevant. The latter include TA 4392-LAO: Organic Produce, TA 4406-LAO: Smallholder Livestock, and TA 6109-REG: NGO Partnerships. The relatively low proportion of TA projects rated highly relevant is surprising. Some ratings were lowered because of a change in priorities between design and completion (TA 4009-LAO: Social Protection), while others did not take full account of the political or institutional environment during design (TA 4108-LAO: Regional Trade). The objectives of TA 4627-LAO: Public Expenditure were ambitious and it is unlikely they could have been achieved, given the capacity constraints of the Ministry of Finance and the institutional relationships between stakeholders. A less ambitious TA might have achieved more. Overall, the PRF program in Lao PDR is rated relevant.

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2.

Effectiveness

12. Only one TA is rated highly effective (i.e., has achieved all or most of its objectives) TA 4406: Smallholder Livestock. It had reasonably clear and simple objectives, with the aim of laying the groundwork for ADBs livestock sector loan programmed to commence by late 2007. The two SSTA projects (TA 4009-LAO: Social Protection and TA 4108-LAO: Regional Trade) achieved little, the former because of a change in policy within ADB that placed less emphasis on social protection, and the latter because of political pressure not to proceed to a second phase. While TA 4339-LAO: Gender Inequality had the potential to contribute to the implementation of the Nam Ngum River Basin Development Project, 3 TA administration problems prevented the undertaking of the second phase, which could have generated information that could have assisted the project in addressing gender inequality issues in the project area. TA 4434-LAO: Land Tenure has so far been less effective because of management issues experienced by the initial implementation advisers, their eventual resignation, and the appointment of new advisers in mid-2007. Village development committees have been established, but few other achievements are evident well after the planned closing date and within 8 months of final closing. If the new advisers and government staff can achieve the land demarcation and allocation objectives within the remaining TA implementation period, an increase in rating to effective may be warranted. 3. Efficiency

13. Only one TA is rated highly efficient (TA 6109-REG: NGO Partnerships), with the Lao PDR component amounting to $20,000 and involving the introduction of a life skills curriculum into selected primary schools in Xieng Khouang province. Its process efficiency was adequate, cost-effectiveness was high owing to implementation through an NGO, and potential for major socioeconomic impact is high. TA 6109-REG: NGO Partnerships for Poverty Reduction contracted NGOs to undertake small projects (up to $20,000) in 28 countries with the intention of (i) supporting NGO engagement in strategic and constructive poverty-related discussions with ADB and governments; (ii) building the capacity of local NGOs to help them work with ADB and governments in the context of ADBs operations in the Asia and Pacific region; and (iii) using the experience gained during the TA to design and establish a larger, long-term assistance window to support NGO poverty reduction activities. While on balance the sub-TA projects were successful and assisted both local communities and the NGOs, they did not make much contribution to objectives 1 and 2. ADB has not yet followed up the TA and under current strategies appears unlikely to do so in the future. TA 4339-LAO: Gender Inequality was rated inefficient because of minimal process efficiency, with payment delays causing premature closure of the TA, and no socioeconomic impact. TA 4392-LAO: Organic Produce and TA 4434-LAO: Land Tenure were both rated inefficient because of the cancellation of the fair-trade organization component and the limited implementation of many of the agricultural marketing activities associated with the implementation of TA 4392-LAO: Organic Produce. Under TA 4434-LAO: Land Tenure, financial management problems, minimal implementation of many activities, poor handover of TA materials to the new management, and consequent delays in implementation prevent a higher rating, even if improved implementation performance is achieved in the limited remaining TA implementation period. The five remaining TA projects are rated efficient.

Loan 1933-LAO, approved in November 2002 for $15 million.

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4.

Sustainability

14. Three stand-alone TA projects achieved high ratings for sustainability. TA 4406-LAO: Smallholder Livestock will be fully integrated into the new livestock sector project 4 and should thus be fully sustainable. Activities to promote life skills curricula through NGOs implementing TA 6109-REG: NGO Partnerships are ongoing in Xieng Khouang, with good potential for expansion to the whole province and ultimately to all rural areas. The survey techniques and software introduced under the Lao PDR component of TA 6171-REG: Regional Economic Integration have been integrated into National Economic Research Institute operations and are thus likely to be sustained. 15. Sustainability is rated unlikely for three TA projects. For the two SSTA projects, no action was taken at the end of or subsequent to the TA to integrate TA outputs into government policies. While adequate reports were produced under TA 4009-LAO: Social Protection, they do not appear to have been translated or distributed. OEM was unable to identify anyone, even within the Handicraft Association, who admitted to remembering TA 4108-LAO: Regional Trade or its activities. TA 4339-LAO: Gender Inequality produced no outputs that would be usable in the context of reducing gender inequality, though it did develop some potentially interesting ethno-anthropological information on the main project area and on nine case-study villages. 16. Three TA projects are less likely to be sustainable for varying reasons. Several activities under TA 4434-LAO: Land Tenure are no longer operating. The village development committees are operating at a basic level but will require ongoing support if they are to last beyond the TA and project implementation period. If the land tenure components can be completed effectively (a difficult task in the remaining implementation period) it is possible that a higher rating could be justified. The main outputs under TA 4627-LAO: Public Expenditure were models for the medium-term fiscal framework (MTFF) and medium-term expenditure framework (MTEF). These will require substantial additional work to make operational, with application across a range of ministries and provinces. TA 6190-REG Trafficking will need to resolve its institutional issues if it is to have long-term impact in Luang Namtha. Problems also exist with the degree of ownership of the TA by the Lao Youth Union, which may limit the extent to which programs will be continued post-project. 5. Socioeconomic Impact

17. As would be expected, given the range of performance against the four evaluation criteria, the socioeconomic impact of projects is mixed. TA 4009-LAO: Social Protection, TA 4108-LAO: Regional Trade, and TA 4339-LAO: Gender Inequality have had no identifiable positive or negative impact. TA 4392-LAO: Organic Produce is having a significant impact on the farmers in its 48 villages and was assessed by villages visited by OEM as the major factor behind improved incomes and reduction of poverty in the past 5 years. TA 4406-LAO: Smallholder Livestock is similarly expected to have a major long-term impact on village incomes. Increased productivity and reduction in mortality are major factors leading to higher cash earnings from livestockthe major potential means of raising incomes in project area villages. TA 4627-LAO: Public Expenditure and the RETA projects have somewhat limited direct socioeconomic impact, though all are expected to generate positive long-term impact. Overall, the socioeconomic impact of NRPR/PRF activities in Lao PDR is assessed as positive, though significantly below potential.
4

ADB. 2006. Report and Recommendation of the President to the Board of Directors on a Proposed Loan and Asian Development Fund Grant to the Lao Peoples Democratic Republic: Northern Region Sustainable Livelihoods through Livestock Development Project. Manila.

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D.

Overall Assessment, Issues, Lessons, and Recommendations

1.

Overall Assessment

18. Brief evaluation of 11 stand-alone TA projects and RETA projects in Lao PDR suggests a mixed performance for the program. One stand-alone TA and a subproject under a RETA are rated highly successful, while five TA projects are rated successful (Table A10.6). TA 4434LAO: Land Tenure is rated partly successful because of the poor performance of the initial NGO adviser, coupled with a slow and difficult transition to new management. Performance could improve to successful if the TAs land allocation objectives can be realized in the next 8 months of the TAs implementation period. The two SSTA projects are also rated partly successful on the grounds that, while they achieved their outputs at a reasonable level, there were no follow-on activities even to the extent of translating and distributing TA reports. TA4339-LAO: Gender Inequality is rated unsuccessful, mainly because of its failure to produce the outputs that were particularly necessary if it was to assist the Nam Ngum project in achieving its gender equity objectives. Overall, the NPRS/PRF program in Lao PDR is considered to have achieved a 64% success rating on the basis of TA projects rated successful or highly successful (Table A6.6). This is a disappointing outcome compared with the findings of the Operations Evaluation Divisions (OEDs) Country Assistance Program Evaluation for Lao PDR, where the success rating for the 58 evaluated TA projects was 76%, suggesting that the NPRS/PRF program in the country was less successful than the TA program as a whole. However, none of the NPRS/PRF TA projects in Lao PDR was rated in the country assistance program evaluation (CAPE). Table A10.6: Summary of TA Ratings against Evaluation Criteria
Short Name TA 4009 Social Protection TA 4108 Regional Trade TA 4339 Gender Inequality TA 4392 Organic Produce TA 4406 Smallholder Livestock TA 4434 Land Tenure TA 4627 Public Expenditure TA 6088 Purchasing Power Parity Data TA 6109 NGO Partnerships TA 6171 Regional Economic Integration TA 6190 Trafficking Overall Rating Rating for Relevance Rating for Effectiveness Rating for Efficiency Rating for Sustainability Overall Rating Relevance 2 2 2 3 3 2 2 2 3 2 2 Effectiveness 0 1 1 2 3 1 2 2 2 2 Efficiency 2 2 1 1 2 1 2 2 3 2 Sustainability 0 0 0 2 3 1 1 1 3 3 Overall PS PS U S HS PS S S HS S

2 2 1 S Unweighted Average Score = 1.77 Successful

3 = Highly Relevant, 2 = Relevant, 1 = Partly Relevant, 0 = Irrelevant 3 = Highly Effective, 2 = Effective, 1 = Less Effective, 0 = Ineffective 3 = Highly Efficient, 2 = Efficient, 1 = Less Efficient, 0 = Inefficient 3 = Most Likely, 2 = Likely, 1 = Less Likely, 0 = Unlikely 3 = Highly Relevant, 2 = Relevant, 1 = Partly Relevant, 0 = Irrelevant Highly Successful (HS) > 2.7 Successful (S) 1.6 to < 2.7 Partly Successful (PS) 0.8 to < 1.6 Unsuccessful (U) < 0.8 Source: Operations Evaluation Mission estimates.

19. The relatively poor performance of evaluated NPRS/PRF TA projects in Lao PDR can be attributed to a range of factors, many of which have been mentioned in the discussion of ratings above. Particular issues have related to (i) lack of ownership by executing agencies;

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(ii) inadequate designs; (iii) poor administration by ADB including change in project officer (though in some cases this has led to improved TA performance); (iv) inefficient financial management by the project advisers, particularly affecting TA 4434-LAO: Land Tenure; and (v) the (partial) failure of the two SSTA projects. If the SSTA projects and the successful microproject under TA 6109-REG: NGO Partnerships are excluded from the list, the success ratio increases to a more reasonable 71%. 2. 20. Issues

A number of issues emerge from the projects reviewed.

21. NGO Implementation. NGOs are likely to make good partners for ADB in a program such as NPRS/PRF if opportunities arise in future poverty programs. In the case of TA 6109-REG: NGO Partnerships, implementation by a foreign NGO based in Lao PDR was highly effective. Implementation was cost-effective and staff were highly motivated, implying that they are able to achieve much with limited resources. This was also true in the case of TA 4406-LAO: Smallholder Livestock, which is implemented by the Centro Internacional de Agricultura Tropical (International Center for Tropical Agriculture, or CIAT), which was motivated and able to compensate for extreme delays in project funding by using its own resources. Issues can arise when faith-based NGOs are selected as project implementers or advisers. In the case of TA 4434-LAO: Land Tenure, the selection of Adventist Development and Relief Agency (ADRA) led to a number of potential problems. 22. Design. More research on the market and cultural environments at design will help identify potential problems and allow more successful implementation. In addition, a simpler TA design will be more implementable. A substantial change in implementation scope should be reflected in the TA budget. The total planned investment in the Nam Ha group of projects is around $3 million ($974,000 funded from PRF), TA 6171-REG: Regional Economic Integration about $1.5 million ($850,000 funded from NPRS), Rural Income Generation about $400,000 plus World Food Programme investments. The project area includes nine villages and around 600 families, involving an investment of around $5,000 per family. While the activities planned are desirable, this level of investment is high, and far beyond the limits normally accepted for integrated rural development projects. 23. Use of Private Firm as Implementing Agency. TA 4392-LAO: Organic Produce was innovative in contracting a private expatriate-run company based in Lao PDR to implement the TAs organic product marketing component. TA design correctly identified a useful role for contract farming in northern Lao and included a range of activities that were potentially beneficial, but which a commercial company might lack the resources to undertake. Two things may have been required under this scenario: (i) closer specification of the activities that could be funded under the TA (and a requirement for an accounting system that allowed accurate demarcation between project and non-project activities), and (ii) closer monitoring by ADB to ensure that the less commercial aspects of the TA were implemented effectively. 24. Capacity Building. The consensus among stakeholders interviewed by OEM was that the main focus of TA 4627-LAO: Public Expenditure, the MTFF/MTEF, was quite technical. Their concepts were not well understood by many stakeholders (such as the Committee on Planning and Investment). The initial concept of developing frameworks for operations was considered but these frameworks were overly ambitious in a Lao context. In practice, some simpler concepts could have been better rather than a model without immediate practical application.

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25. Relationship with the Executing Agency. There was limited communication with the National Steering Committee for Commodity Production (the executing agency, or EA) for the TA4392-LAO: Organic Produce in the early project period. In practice, it is unclear what the EA could have achieved by more close involvement. If it is necessary to appoint an EA, it would be advisable to define its roles and provide it with enough resources to fulfill them. 26. Small-Scale TA Projects. The two SSTA projects in Lao PDR are rated partly successful since both suffered the same problems of lack of follow-through to larger activities. In the case of TA4009-LAO: Social Protection, there was a lack of motivation from ADB to fund a follow-on TA in the sector partly because of a decision to focus future activities in sectors in which ADB was perceived to have a comparative advantage. For TA4108-LAO: Regional Trade, there is reported to have been political opposition to ongoing work. 27. Lack of Strategic Focus. The PRF program in Lao PDR has covered a wide range of sectors and in many cases supported ADB loan projects. Overall, the program has not been strategic, which is also observed by the 2005 country assistance program evaluation (CAPE, para. 200), the 2001 CSP did not focus on ADBs comparative advantage in physical infrastructure (energy and transport) in supporting private sector-led growth. It diverted attention to many sectors, without addressing limited government absorptive capacity. 3. Lessons

28. PRF has the potential to provide speedy and responsive interventions. However, care is required to ensure that ownership is strong and that the interventions are not donor-driven. Ownership issues affected TA 4392-LAO: Organic Produce, where the proposed EA (Department of Agriculture and Forestry) declined to implement the TA (presumably because it did not accord with the priorities of the EA). It was then required to be taken up by the Ministry of Commerce. The latter never assumed ownership of the project, with negative impact on implementation. 29. Poor financial administration has the potential to severely damage implementation (TA 4339-LAO: Gender Inequality and TA 4392-LAO: Organic Produce in particular). 30. NGOs can be effective implementing agencies (e.g. TA 6109-REG: NGO Partnerships). However, the NGO for TA 4434-LAO: Land Tenure found the implementation of a complex project difficult and withdrew from the project, thus causing major disruption. Faith-based NGOs face problems in implementing rural development projects, which can at times require work on weekends. 31. CIATs experience in implementing TA 4406-LAO: Smallholder Livestock indicates that regional organizations have skills in implementing small projects, reinforced by their capacity to carry costs for long periods in the face of inefficient financial administration. The TA generates a number of useful lessons including (i) (ii) (iii) the valuable role that PRF TA projects can play in setting up systems to allow streamlined initial implementation of loan projects; the increased effectiveness of government staff when they have a strongly demanded technology package to promote; and the value of livestock to generate income in remote villages, when combined with forage development and basic veterinary care.

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COUNTRY REPORT FOR NEPAL

A. Introduction

1.

NPRS/PRF in Nepal

1. The Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategy (NPRS)/Poverty Reduction Cooperation Fund (PRF) program in Nepal funded six stand-alone technical assistance (TA) projects and seven regional TA (RETA) projects with significant activities in Nepal (Tables A11.1 and A11.2). The TA numbers in boldface were selected for field evaluation. Table A11.1: PRF Nepal Program
Source of Completion Funds ($000) Approval Date TA No. TA Name Date TA Status Original Revised NPRS PRF 4353 Promoting Pro-poor and Gender Responsive 200 Jul-04 Completed Jan-06 Dec-06 Service Delivery Project (w/ TCR) 4754 Education Sector Development 150 Dec-05 Ongoing Oct-06 Jul-07 4759 Reaching the Most Disadvantaged Groups in 685 Dec-05 Ongoing Jan-08 Jun-08 Mainstream Rural Development 4760 Enhancing Poverty Reduction Impact of Road 350 Jan-06 Completed Aug-07 Projects (w/o TCR) 4774 Economic and Social Inclusions of the 450 Mar-06 Ongoing Dec-07 Disadvantaged Poor through Micro-Irrigation and Other Livelihood Enhancement Initiatives 4776 Enabling the Private Sector to Undertake Poverty570 Mar-06 Ongoing Aug-07 Oct-07 Focused Water Distribution in Kathmandu Valley PRC = Peoples Republic of China, NPRS = Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies, PRF = Poverty Reduction Cooperation Fund, TA = technical assistance, TCR = TA completion report. Source: Regional and Sustainable Development Department.

Table A11.2: NPRS-PRF Regional TA Projects with Activities in Nepal

Subregion/ Source of Funds TA Country ($000) Project Name No. Coverage NPRS PRF Others BAN, IND, 5945 Fifth Agriculture and Natural 905 6,080 NEP, PAK Research at CGIAR Centers Breeding Iron-Rich Rice to Reduce Iron-Deficiency Anemia in Asia 6088 Strengthening and Collection of 25 800 2,320 Economiesa Purchasing Power Parity Data in ADB DMCs 6109 NGO Partnerships for Poverty 28 1,000 b Countries Reduction BAN, INO, 6120 Developing a Social Protection 300 300 600 MON, NEP, Index for Committed Poverty PAK VIE Reduction BAN, CAM, 6188 Establishing Legal Identity for 575 575 NEP Social Inclusion BAN, MON, 6278 Innovative Information and 800 800 NEP, SAM Communication Technology in Education and its Potential for Reducing Poverty in Asia and the Pacific Approval Date Feb-03 Completion Date Original Revised Ongoing Dec-03 Dec-07 TA Status

Dec-02

Ongoing

Dec-05

Mar-08

May-03 Completed Dec-04 (w/ TCR) Aug-03 Completed Mar-05 (w/ TCR) Sep-04 Dec-05 Ongoing Ongoing

Apr-07 Jul-06

Dec-05 Sep-07 Dec-07

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Subregion/ Source of Funds Completion TA Approval TA Country Date Project Name ($000) No. Date Status Coverage NPRS PRF Others Original Revised BAN, NEP, 6306 Mainstreaming MfDR in Support of 1,800 2,300 Jan-06 Ongoing Dec-07 Dec-08 PAK Poverty Reduction ADB = Asian Development Bank, BAN = Bangladesh, CAM = Cambodia, CGIAR = Consultative Group for International Agricultural Research, PRC = Peoples Republic of China, DMC = developing member country, IND = India, INO = Indonesia, MON = Mongolia, NEP = Nepal, NPRS = Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies, PAK = Pakistan, PRF = Poverty Reduction Cooperation Fund, SAM = Samoa, TA = technical assistance, TCR = TA completion report, VIE = Viet Nam. a Bangladesh; Bhutan; Cambodia; Peoples Republic of China; Fiji Islands; Hong Kong, China; India; Indonesia; Republic of Korea; Lao Peoples Democratic Republic; Malaysia; Maldives; Mongolia; Myanmar; Nepal; Pakistan; Papua New Guinea; Philippines; Singapore; Sri Lanka; Thailand; Taipei,China; Viet Nam. b Afghanistan, Azerbaijan, Bangladesh, Bhutan, Cambodia, Peoples Republic of China, Cook Islands, Indonesia, Kiribati, Kyrgyz Republic, Lao Peoples Democratic Republic, Republic of the Marshall Islands, Federated States of Micronesia, Maldives, Mongolia, Nauru, Nepal, Pakistan, Papua New Guinea, Samoa, Sri Lanka, Solomon Islands, Tajikistan, Tonga, Turkmenistan, Tuvalu, Vanuatu, Viet Nam. Source: Regional and Sustainable Development Department.

2.

Fieldwork Program

2. The six stand-alone TA projects and five of the RETA projects were selected for evaluation. Brief field evaluations were undertaken of three TA projects: TA 4353-NEP: Service Delivery (in Lamjung District), TA 4774-NEP: Micro-irrigation (in Kavre District), and TA4776NEP: Water Distribution (in Kathmandu). Other TA projects were discussed with executing agencies and consultants in Kathmandu but were not reviewed in the field. B. Program Factors 1. Relationship to National and ADB Strategies

3. Since poverty reduction is a central objective in Nepal, PRF TA projects have demonstrated good coincidence with government policy (Table A11.3). Government policy is most readily taken from the Poverty Reduction Strategy Paper, 1 published in 2003 and reflected in the Tenth Plan 20032007. The strategy discussed in the paper rested on four pillars: (i) broad-based economic growth; (ii) social sector development including human development; (iii) targeted programs including social inclusion, in order to bring the poor and marginalized groups into the mainstream of development, together with targeted programs for the ultra poor, vulnerable, and deprived groups (who may not adequately benefit from the first two pillars); and (iv) good governance. 4. Given that 80% of the population is rural, with most households dependent on agriculture, policies and programs in the agricultural sector are central to national growth and stability. The growth strategies for agriculture are to modernize, diversify, and commercialize crop and livestock production by expanding the use of technology, and increasing the access of farmers to modern agricultural inputs and credit. Agriculture sector development will be directed at ensuring the successful implementation of the Agriculture Perspective Plan, which aims to increase cereal and cash crop production in the Terai and develop livestock, horticulture, and specific high-value crops in the hills. The main activities in this regard include programs to promote supply of fertilizers, provide irrigation facilities, and expand rural agricultural roads, rural electricity, and the marketing network.
1

Nepal National Planning Commission. 2003. The Tenth Plan (Poverty Reduction Strategy Paper) 20022007. Kathmandu.

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Table A11.3: Links between PRF TA Projects and Nepal Policies

PRF TA 4353 Service Delivery 4754 Education Sector 4759 Rural Development 4760 Road Project Impact 4774 Micro-irrigation 4776 Water Distribution 6088 Purchasing Power Parity Data 6109 NGO Partnerships 6120 Social Protection Index 6278 ICT in Education Link to Nepal Policy/Strategy Economic growth, social inclusion, targeted programs for the ultra poor Contribution to Education-for-All program and capacity development in policy functions Model for upscaling targeted programs for the ultra poor, social inclusion Improving economic inclusiveness of road programs, economic growth Expanding horticulture production, modelling micro-irrigation development for the poor Meeting MDG for water provision Potential to contribute to improved poverty assessment

As implemented, contribution to social inclusion and water MDG Potential to contribute to social protection planning Long-term potential contribution to improving teacher quality and education outcomes 6306 Mainstreaming MfDR Improved national planning and resource allocation ICT = information and communication technology, MDG = Millennium Development Goal, MfDR = managing for development results, NGO = nongovernment organization, PRF = Poverty Reduction Cooperation Fund, TA = technical assistance. Source: Operations Evaluation Mission estimates.

5. While all TA projects had the potential to contribute to government policies, it is evident from Table A11.4 that the stand-alone TA projects had a more direct relationship to policy than the RETA projects. At least in Nepal, although all had the potential to contribute directly or indirectly to national policy, in most cases this would need active follow-up by the Asian Development Bank (ADB) or promotion by the Government. Table A11.4: Links between NPRS-PRF TA Projects and ADBs PPA and CSP Objectives
Objective 4353 A. Poverty Partnership Agreement 1. Rural Development 2. Improvement of Basic Social Services and Infrastructure 3. Womens Empowerment 4. Private Sector Development and Corporate and Financial Sector Reforms 5. Governance Reforms in the Public Sector 4754 4759 4760 TA Number 4774 4776 6088 6109 6120 6278 6306

B. Country Strategy and Program (20052009) 1. Broad-based Economic Growth 2. Focus on the Needs of the Poor/Excluded in Rural Areas 3. Inclusive Social Development 4. Empower the Poor and Excluded 5. Promote Skills Needed for Remunerative Employment 6. Good Governance a. Encourage Participation of Women, and Disadvantaged and Excluded Groups b. Support Decentralization Initiatives c. Improving Devolved Service Delivery at Grassroots Level

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TA Number Objective 4353 4754 4759 4760 4774 4776 6088 6109 6120 6278 6306 d. Pursuing Institutional Strengthening/Deregulation e. Supporting Civil Service Reforms ADB = Asian Development Bank, CSP = country strategy and program (now the country partnership program [CPS]), PPA = poverty partnership agreement, PRF = Poverty Reduction Cooperation Fund, TA = technical assistance. Source: Operations Evaluation Mission estimates.

6. The PRF program showed good coincidence with three of the five pillars of the poverty partnership agreement (PPA). Direct linkage was evident particularly in relation to rural development and womens empowerment. Links to the PPA objective (objective 2) were demonstrated directly only by TA 4776-NEP: Water Distribution, but indirect or long-term links can be inferred in several of the RETA projects as well as under TA 4754-NEP: Education Sector, which will support improved education provision under ADBs Education Sector Program I loan. 2 TA 6088-REG: Purchasing Power Parity Data does not appear to have much linkage to Poverty Partnership Agreement (PPA) or Country Strategy and Program (CSP) objectives. 7. Under ADBs 20052009 CSP, 3 strong linkage was again shown by the stand-alone TA projects in relation to all three pillars of the program, but particularly to the poverty focus of broad-based economic growth and inclusive social development. Most individual TA projects encourage womens participation in economic activity and community-based organizations. Provided RETA objectives were broadly defined, several RETA projects are reasonably coincident with CSP objectives. This is as expected, and highlights the difficulty that RETA projects often face in being highly relevant to local policies and strategies, including ADBs CSP. TA6306-REG: Mainstreaming Managing for Development Results (MfDR) presents an interesting case. Nepal was included in the RETA partly because it was most advanced in MfDR among the participating countries and was thus felt to have much to contribute. MfDR is also central to government programs under the Tenth Plan 20032007 and implementation is expected to broaden and deepen under the proposed new 3-year interim development plan. ADB has shown strong support, and is currently launching a successor TA in the sector. 2. Relationship to PRF Objectives

8. The program in Nepal has coincided well with PRF objectives, as summarized in Table A11.5. In the table, ratings are based on indirect as well as direct impact. Thus, for example, in relation to objective 2 (to develop new programs and projects with increased focus on poverty reduction), ratings have been based on the potential for the TA to influence this in the future as well as directly meeting the objective itself. Table A11.5: Estimated Level of Response to PRF Objectives (Based on Questionnaire Results)
TA Number PRF Objective 4353 4754 4759 4760 4774 4776 6088 6109 6120 6278 6306 Ave. 1. Assist in policy dialogue and strategy 1 3 1 3 2 1 2 1 3 1 3 1.9 formulation on poverty reduction; 2. Develop new programs and projects with 3 2 3 3 3 3 1 3 1 3 3 2.5 increased focus on poverty reduction;

ADB. 2006, Report and Recommendation of the President to the Board of Directors on Proposed Loans and Asian Development Fund Grants to Nepal for the Education Sector Program I. Manila. ADB. 2004. Country Strategy and Program (20052009): Nepal. Manila.

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TA Number PRF Objective 4353 4754 4759 4760 4774 4776 6088 6109 6120 6278 6306 Ave. 3. Monitor and assess the poverty 1 2 2 3 2 3 2 1.4 reduction impact at the project, meso, and macro levels; 4. Launch pilot poverty reduction activities 3 1 2 3 3 3 2 3 2 2.0 to influence future loan design; 5. Involve broader stakeholder 1 3 1 2 2 1 2 1 1 3 1.5 consultations at all stages of design and implementation; 6. Strengthen ADBs role as the regional 1 2 1 2 3 1 3 3 1 1.5 development bank for Asia and the Pacific to promote poverty reduction ADB = Asian Development Bank, Ave. = average, PRF = Poverty Reduction Cooperation Fund, TA = technical assistance. Note: Estimated level of response by TA: > 2.7 = highly responsive, 1.6 to < 2.7 = responsive, 0.8 to < 1.6 = partly responsive, < 0.8 = low response. Source: Results of SES questionnaires.

3.

NPRS in Nepal

9. Nepal completed its first poverty reduction strategy paper in 2003, which supported the Tenth Plan 20032007, assisted by ADB through the TA Special Fund (TASF). In 2007, it has been updated as a 3-Year Interim Plan. However, NPRS did not make any significant investments in supporting poverty reduction strategies. It started too late to support the first plan, and its imminent closure precluded contribution to the 3-year plan. 10. Three of the RETA projects with investments in Nepal received funding from NPRS (i.e., TA 6088-REG: Purchasing Power Parity Data, TA 6109-REG: NGO Partnerships, and TA 6120REG: Social Protection Index). While, in principle, the first and last of these did have some potential to contribute to the drafting of the Poverty Reduction Strategy Paper (PRSP), they are not thought to have been used in the development of the updated plan. TA 6109-REG: NGO Partnerships has no obvious connection to the PRSP. 4. TA and Conflict

11. The PRF program has been severely affected by conflict both directly and indirectly. Direct effects include delays caused by attempts by Maoists to extract rent (TA 4353-NEP: Service Delivery) and problems caused by insurgency in lowland districts (TA 4759-NEP: Rural Development). Indirect impact has, however, been more severe, and mainly relates to the inability of PRF to write new projects during most of 2004/05 (despite the ceasefire in 2005) and consequent delays in the start-up of several TA projects. This delay, combined with normal start-up delays, led to severe time pressure on several TA projects and consequent lack of time for group mobilization and consolidation. It may yet lead to failure to complete TA 4759-NEP: Rural Development and TA 4776-NEP: Water Distribution. 5. Disbursement

12. Partly because of the conflict and time pressure mentioned above, the PRF TA projects in Nepal suffered disbursement problems to a greater degree than other PRF countries. Four of the six stand-alone TA projects have suffered from disbursement delaysTA 4353-NEP: Service Delivery, TA 4759-NEP: Rural Development, TA 4774-NEP: Micro-irrigation, and TA 4776-NEP: Water Distribution. The two TA projects that were efficiently implemented benefited from the writing of lump-sum contracts with the implementing nongovernment

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organizations (NGOs) (TA 4760-NEP: Road Project Impact) or direct contracts with project preparatory TA consultants (TA 4754-NEP: Education Sector). Disbursement delays are further assessed under Issues in Section IV.B.
C. Performance Assessment

1.

Relevance

13. Of the 11 TA projects reviewed in Nepal, eight are rated highly relevant. The rating for TA 4776-NEP: Water Distribution was lowered to relevant because, while the concept was sound, the institutions it was primarily intended to assist have not yet been created. TA 6088REG: Purchasing Power Parity Data has not been mainstreamed into the national statistical system. One of the three subprojects under TA 6109-REG: NGO Partnerships (agricultural advocacy) was rated partly relevant with the two subprojects (water and sanitation) rated highly relevant. This suggests an overall rating of relevant for the TA. Overall, the PRF program in Nepal has been highly relevant from the perspective of both the Government and ADB. 2. Effectiveness

14. Two stand-alone TA projects and two RETA projects are rated highly effective. TA 4760-NEP: Road Project Impact prepared guidelines for enhancing the poverty reduction impact of road projects. These have been approved and are being mainstreamed into Department of Roads activities. Pilot community development and microfinance activities along the 110-kilometer road being upgraded in the East Region under the ADB-financed Road Network Development Project (RNDP) have been successful, though some income-generating activities will take more time to become fully established. TA 4774-NEP: Micro-irrigation developed 2,200 drip, sprinkler, and treadle pump irrigation systems, which in their first year have earned an average of around NRs5,000 for their owners, with a capital cost of only NRs1,500NRs2,000. Within the context of their overall programs, the RETA projects TA 6120-REG: Social Protection Index and TA 6278-REG: ICT in Education have been highly effective but so far have had little impact within Nepal. This highlighted the need to develop mechanisms to promote the use of RETA outputs. 15. Three stand-alone TA projects are rated less effective. Both rural development TA projects implemented by the Department of Women Development (DWD) have not achieved their objectives in terms of supporting service delivery to poor farmers. Nonetheless, the goat, pig, cropping, and fish production enterprises under TA 4353-NEP: Service Delivery are expected to be viable. Delays have severely affected the implementation of TA 4759-NEP: Rural Development and, unless implementation can be expedited, few of the planned income-generating activities will be implemented by the TA completion date. The full pilot-testing of conditional cash transfers can no longer be effective because of time constraints. TA 4776-NEP: Water Distribution is also rated less effective, because of the delays in TA commencement in large part due to uncertainties whether the TA would proceed. It will be impossible for the TA to provide the anticipated level of support to the new water institutions even if they are created before the end of the project, though it is expected that the new water utility operator will commence in February 2008. The short time remaining for implementation also means that it will be difficult to create and consolidate water user groups for the new tap stands. However, for the tap stand rehabilitation program, many groups appear to be well established and operating effectively. Overall, the NPRS/PRF program is rated effective.

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3.

Efficiency

16. Three of the TA projects that were rated highly effective were also highly efficient. TA 4760-NEP: Road Project Impact achieved high implementation efficiency through the formulation of lump-sum contracts with its implementing NGOs and should have significant economic impact through the implementation of the guidelines developed under the TA. TA 6120-REG: Social Protection Index was implemented efficiently by international and local consultants, and should have significant impact in some of its countries through the promotion of improved social protection for poor and disadvantaged groups. However, in Nepal the RETA has not been able to achieve much policy impact. 17. TA 4759-NEP: Rural Development is rated inefficient because of major disbursement delays, caused by inability to reach the required level of liquidation of the first progress payment. This has mainly been caused by security problems in the two lowland districts. It is constraining implementation in the two hill districts that are ready to start distribution of their conditional cash transfers. TA 4776-NEP: Water Distribution is rated less efficient because of delays in NGO recruitment and the commencement of construction activities, which will mean that all components will have to be completed within a 4-month period. This has mainly been caused by factors outside the control of the TA, but highlights the problem of time-bound TA projects, which are dependent on policy or institutional development. The overall program is rated efficient. 4. Sustainability

18. Only one project was rated highly sustainableTA 4760-NEP: Road Project Impact, where the guidelines prepared under the TA have been mainstreamed and a new desk to assist in implementation established in the Department of Roads. TA 4759-NEP: Rural Development and TA 6088-REG: Purchasing Power Parity Data are rated less sustainable. The latter effectively defined purchasing power parity for Nepal but has not succeeded in integrating purchasing power parity data collection with other statistical systems (such as the consumer price index estimation) or in using the data to assist in refining poverty lines. Other TA outcomes are rated sustainable, though in some cases on a tentative basis. For example, TA 4776-NEP: Water Distribution will need to largely complete its tap stand program including group formation and at least some consolidation if it is to attain this rating. Overall, NPRS/PRF is rated sustainable. 5. Socioeconomic Impact

19. The stand-alone TA projects should mainly achieve moderate to high socioeconomic impact. The two rural development TA projects (TA 4759-NEP: Rural Development and TA 4353-NEP: Service Delivery) assisted in the development of systems for coordination between service agencies, the formation of effective groups, and the establishment of income-generating activities among the extremely poor. However, both have experienced delays and problems, which mean that the projects impact on their participants will be below potential. TA 4760-NEP: Road Project Impact should achieve high socioeconomic impact through replication in new Department of Roads projects across Nepal. Many of the income-generating activities that commenced under its microfinance programs may achieve high returns for their owners over time, thus providing useful contribution to improving livelihoods and, consequently, contributing to the TAs socioeconomic impact in the project area. TA 4774-NEP: Micro-irrigation project beneficiaries have generated high returns during their first production year and were easily able to fully repay the loans of NRs1,000 made under the TA.

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While the future appears promising, it was notable that in one village visited by the Operations Evaluation Mission (OEM), many of the repaid loans were immediately re-borrowed, primarily for consumption expenditure. While this is understandable, given the poverty of the households, it is desirable if profits can be invested in savings (e.g., in the form of livestock) as insurance against future crop failures or the adverse market conditions that can affect horticultural production. 20. Of the RETA projects, TA 6109-REG: NGO Partnerships will have significant impact on households supported under the two water supply and sanitation subprojects. However, the third subproject evaluated, relating to agricultural development and advocacy, will have limited impact. TA 6306-REG: Mainstreaming MfDR will have major impact, provided that MfDR is mainstreamed into government planning and budgeting systems. Further work will be required to achieve this, together with the output/outcomes budgeting required to fully integrate MfDR into departmental (and ultimately district) programs. It should be noted that mainstreaming MfDR into the Governments planning and budgeting systems by its nature is a slow process. Therefore, the achievement of expected impact will require long-term and comprehensive support. Other RETA projects will probably not generate much socioeconomic impact in Nepal. However, impact may be higher in other participating countries.
D. Overall Assessment, Issues, Lessons, and Recommendations

1.

Overall Assessment

21. Of the 11 TA projects assessed, three are rated highly successful, six successful, and two partly successful (Table A11.6). The fact that 82% of the TA projects were rated successful or higher indicates that the PRF program in Nepal has been successful and has made a useful contribution to development and poverty reduction. The TA projects rated highly successful (TA 4760-NEP: Road Project Impact and TA 4774-NEP: Micro-irrigation) achieved their objectives in relation to both policy development and small-scale investment and income generation. TA 6120-REG: Social Protection Index is rated highly successful because of the high quality of its outputs and effective regional workshops, even though it has achieved little in terms of influencing policy in Nepal. 22. The two TA projects rated partly successful (TA 4759-NEP: Rural Development and TA 4776-NEP: Water Distribution) faced major delays, and now have limited time in which to meet their objectives. If both can meet most of their investment objectives efficiently in the remaining implementation period, the rating could be successful, even though TA 4776-NEP: Water Distribution has almost no capacity to meet its institutional capacity-building objectives since the institutions it is designed to support have not yet been established. 23. All of the TA projects in the Nepal program were advisory and operational except for TA 4754-NEP: Education Sector, which was for project preparation, funded through a $150,000 grant from PRF and $450,000 from TASF. While this TA made a useful contribution to loan project design, it is not clear what value the use of PRF funds added, compared with full TASF funding. The use of PRF or similar funds simply to top up TASF funding is not highly desirable, particularly when the relationship to poverty reduction is rather indirect. While no firm recommendation can be made, the OEM agrees with PRF management that the fund (or its possible successor) should generally not undertake project preparatory TA.

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Table A11.6: Summary of TA Ratings against Evaluation Criteria

Short Name 4353 Service Delivery 4754 Education Sector 4759 Rural Development 4760 Road Project Impact 4774 Micro-irrigation 4776 Water Distribution 6088 Purchasing Power Parity 6109 NGO Partnerships 6120 Social Protection Index 6278 ICT in Education 6306 Mainstreaming MfDR Overall Rating Rating for Relevance Rating for Effectiveness Rating for Efficiency Rating for Sustainability Overall Rating Relevance 3 3 3 3 3 2 2 2 3 3 3 Effectiveness Efficiency Sustainability Overall 1 1 2 S 2 2 2 S 1 1 1 PS 3 3 3 HS 3 3 2 HS 1 1 2 PS 2 2 1 S 2 2 2 S 3 3 2 HS 3 3 2 S 2 2 2 S Unweighted Average Score = 2.1 Successful

3 = Highly Relevant, 2 = Relevant, 1 = Partly Relevant, 0 = Irrelevant 3 = Highly Effective, 2 = Effective, 1 = Less Effective, 0 = Ineffective 3 = Highly Efficient, 2 = Efficient, 1 = Less Efficient, 0 = Inefficient 3 = Most Likely, 2 = Likely, 1 = Less Likely, 0 = Unlikely 3 = Highly Relevant, 2 = Relevant, 1 = Partly Relevant, 0 = Irrelevant Highly Successful (HS) > 2.7 Successful (S) 1.6 to < 2.7 Partly Successful (PS) 0.8 to < 1.6 Unsuccessful (U) < 0.8 ICT = information and communication technology, MfDR = managing for development results, NGO = nongovernment organization, TA = technical assistance. Source: Operations Evaluation Mission estimates

2. 24.

Issues

A number of issues emerge from the projects reviewed and are discussed below.

25. Implementation. Implementation issues have been more severe in Nepal than other case-study countries partly because of the conflict environment, which (i) has significant delayed several TA projects; and (ii) prevented the approval of several TA projects until the political situation improved in late 2005/2006, thus forcing the projects to commence too close to the planned PRF closure. The PRF TA projects are often designed like micro-projects, which can suffer implementation delays as larger projects. Thus, the complex implementation arrangements and the need for extended support to consolidate groups can require much longer implementation periods. Moreover, planned TA periods were often too short to meet the technical and management needs of group formation and consolidation. Extensions in TA implementation periods were often due to delays in TA inception, political problems, and delayed fund flows. Time constraints have been greatly exacerbated by slow project start-up and delays in the recruitment of consultants. 26. Slow Liquidation of Advance Payments. Most of Nepals stand-alone PRF TA projects have experienced severe problems in relation to liquidating advance payments. The problem caused serious delays in several projects, notably for TA 4353-NEP: Service Delivery, TA 4759-NEP: Rural Development, TA 4774-NEP: Micro-irrigation and TA 4776-NEP: Water Distribution. TA 4759-NEP: Rural Development and TA 4776-NEP: Water Distribution may fail to complete as a result. In the former case, slow disbursement in two project sites in lowland districts due mainly to conflict has prevented the implementation of the next stage (cash transfers to villagers) in the two hill districts that have made more progress. This may prove to be a major barrier to the timely closure of the TA since the villagers have already been selected

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and advised of their benefits. Any failure to meet project obligations could lead to political problems in project villages. 27. Partly because of the complex financial arrangements and difficulties in collecting financial statements from the districts and local NGOs, advance payments under TA 4353-NEP: Service Delivery were much delayed. The disbursement process was complicated by the flow of funds through accounts in different banks and by the involvement of both ADBs Nepal Resident Mission (NRM) and the Controllers Department at ADB headquarters in processing requests for liquidations and advances. According to the findings of the international consultant, the accumulated delays in funding TA activities seriously undercut the TA objective of piloting quick impact activities for very poor and marginalized households and undermined the social mobilization activities of the partner NGOs as well as the trust and goodwill of members of community-based organizations. 28. In part, the problem stems from the remote and scattered location of many TA implementation sites, which causes problems for implementing agencies, NGOs, or consultants in assembling receipts and forwarding them to Kathmandu. The situation is exacerbated by the large number of small-value receipts and the difficulty in obtaining receipts for some items. The implementing agency (IA) assembles the receipts and normally pastes or staples them onto sheets of paper, codes them, and summarizes the costs onto an MS Excel spreadsheet. This statement of expenditure is forwarded to the NRM for checking and (if necessary) further translation of the items in the receipt. Once cleared by NRM, these are sent to ADB headquarters for reimbursement. On many occasions, the claim is disallowed by the Controllers Department in ADB and returned to the IA for further clarification or translation. This exercise is highly demanding of implementing agency and NRM resources, with NRM staff required to work many hours of unpaid overtime to review TA statement of expenditures. 29. The only TA projects in Nepal that have not experienced damaging delays are those where either (i) most contracts are defined in lump sum (TA 4760-NEP: Road Project Impact), or (ii) NGOs or consulting companies have paid from their own resources to meet funding deficits and keep the project moving (TA 4774-NEP: Micro-irrigation). For many TA projects, neither solution is feasible. The second option is undesirable as it uses scarce working capital resources of the IA or requires cross-funding from other projects. Several options for reducing the problem exist but will require changes in ADBs financial management systems. 30. Complex Design. The institutional arrangements for some TA projects required cooperation between several institutions. For example, TA 4353-NEP: Service Delivery involved three government institutions at central and local levels and an ongoing ADB project (Community Livestock Development Project [CLDP]). These arrangements proved difficult to implement with, for example, the technical support from the District Livestock Service Office (DLSO) in Nawalparasi to goat-raising groups under the TA being extremely slow and limited, despite firm commitments from both DLS and the CLDP Project Manager. 4 TA 4759-NEP: Rural Development and TA 4774-NEP: Micro-irrigation also had requirements for multiagency cooperation, though in the latter case it did not affect project outcomes too badly. Under TA 4353-NEP: Service Delivery, memorandums of understanding were signed between the three departments. This was a useful concept intended to ensure adequate support for income-generating activity development and operation. However, in practice, cooperation and support were weak both during and after the TA period. Communication and support problems
4

ADB. 2007. Technical Assistance Consultants Report on Promoting Pro-Poor and Gender Responsive Service Delivery Project in Nepal. Manila.

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under the TA projects could perhaps have been reduced if adequate payments to livestock and agricultural staff had been budgeted, e.g., for training and travel. 31. Group Formation. Under TA 4353-NEP: Service Delivery, groups appear to have been formed effectively through participatory rural appraisal by the local NGOs. They were provided with training in group dynamics through the NGOs and technical training by the Department of Livestock Services and (where relevant) the Department of Agriculture. However, the period of support to the groups was inadequate, with at least a further 12 months worth of inputs likely to be required before most groups could be considered sustainable. In principle, this support should be provided by the Women Development Office (WDO) but staff in Lamjung District said that they have been unable to assist because of the limited budget and because they are only permitted to work with womens groups. In practice, the Department of Women Development has modified this policy and there is no barrier to ongoing support from WDOs. Most other TA projects also lacked time for adequate group consolidation because of the short implementation periods exacerbated by implementation delays. 32. Level of Support. The donation of two goats to selected households (valued at about NRs3,500 per household) under TA 4353-NEP: Service Delivery was substantial and justified by the extreme poverty of most beneficiary households. Beneficiaries agreed to pass on the gift by giving a pair of goats to other poor households in the village. However, this will depend on the performance of the goat venture and the goodwill of the initial beneficiaries. Further support from WDOs may be required. While in principle passing on the gift can alleviate this problem, in practice more measures may be needed, perhaps including the provision of some funding to support wider village priorities (such as access-road upgrading) that can benefit the entire village. Under TA 4759-NEP: Rural Development, conditional cash transfers are planned, totaling $350 per household, of which half is to be spendt for immediate needs and to cover the opportunity costs of attending livelihood training. These may give rise to jealousy and conflicts may arise between cash transfer recipients and other poor households. Under TA 4774-NEP: Micro-irrigation, small levels of support (around NRs1,500 to NRs2,000, of which NRs1,000 was treated as a loan) have greatly improved the livelihoods of participating farmers. However, loan payments are often re-loaned to the farmers, and are sometimes used for consumption expenditure. In this regard, two aspects need review: (i) to introduce the concept of savings so that crop failures or adverse vegetable market conditions do not jeopardize the group or its members, and (ii) to consider inviting new members to join the group who could be loaned funds for micro-irrigation development, thus potentially assisting more small farmers to move out of poverty. 33. Training. Training of groups and government service staff has been a major component of several TA projects. While in many cases, training has been conducted effectively, much of it seems to be rather ad hoc. Training needs assessments and training plans do not appear to have been prepared for many projects (although none was seen by OEM), while training course reports could not be located. It is acknowledged that the TA projects are quite small and limited in duration, but there is nonetheless a need to conduct at least basic needs assessment and training plan development. Particularly for pilot projects, the lack of such assessments, course reports, and evaluations means that valuable lessons cannot be carried forward and built on. TA 4759-NEP: Rural Development is a case in point where, within 4 months of the end of physical activities under the TA, there seems to be no clear concept of training needs. Thus, there is an urgent need to develop training plans in collaboration with the Department of Women Development.

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34. NGOs in Advocacy and Microfinance. NGOs are effective in small-scale infrastructure development. However, TA funding is probably not an appropriate basis for financing advocacy activities. In this case, some of the advocacy activities (e.g., antiWorld Trade Organization and traditional marketing structures) may be in conflict with other ADB activities or approaches. While traditional marketing structures are not always efficient, the best approach to improving marketing efficiency is often to encourage access and competition and provide improved market information. NGOs implemented the pilot projects under TA4760-NEP: Road Project Impact effectively. Project consultants noted that affiliation of NGOs with a microfinance institution ensures regular fund flow, constant monitoring and supervision, and sustainability of the project as the processes are built into the microfinance services. Thus, NGOs and cooperatives involved in microfinance or associated with microfinance institutions should promote smooth implementation of activities and sustainability of activities after project completion. 35. Water Pricing. Under TA 4776-NEP: Water Distribution, water is planned to be distributed for free to beneficiary communities during the first year of operation and then services will be charged on the next year at 50% of normal fees. Full costs will be charged in the third year. However, there are two possible issues with this proposal: (i) Communities are used to paying for water, at around NRs30NRs40 per month for private schemes. Free provision is therefore not necessary and risks establishing a precedent, particularly among those groups that are already paying. The pricing of water in year 3 is currently planned at NRs11 per thousand liters per month, compared with a private tap charge of NRs5 per thousand liters for the first 10,000 liters and then NRs15 per thousand liters. These tariffs are not pro-poor and could be reviewed by the Tariff Commission.

(ii)

36. Duplication of TASF TA Projects. TA 4765-NEP: Operationalization of Managing for Development Results funded under TASF was approved by ADB on 13 February 2006. It is similar in intention to the Nepal component of TA 6306-REG: Mainstreaming MfDR and started at the same time. While the approaches and activities under the above TA projects were similar, the two projects were accepted by the Government and NRM because several core elements of results-based management related to planning, budgeting, implementing, and monitoring were already in place at the national level but MfDR practices at the ministry and district levels needed to be substantially strengthened. With the support of the two TA projects, the Government was able to implement MfDR in several ministries, departments, and district development committees. Another TA on MfDR, which will be processed in 2008, will build on the experiences and achievements of TA 4765-NEP and TA 6306-REG. 37. Application of RETA Outputs/Outcomes. TA 6088-REG: Purchasing Power Parity Data has the potential to generate useful data continuously. However, for this to happen it would need to be integrated with consumer price index data collection. While to some degree this may be considered as a by-product in relation to the overall International Comparison Project exercise, it is important that the RETA include resources to ensure that the results and systems are mainstreamed as far as possible from an individual countrys perspective. Otherwise, the RETA will remain an esoteric exercise, i.e., demanding resources from the IA but with little contribution to national development objectives. 38. Follow-Up. RETA projects can be valuable particularly in the exchange of country experiences, though most of the sharing takes place at regional workshops or via international consultants. Local follow-up of RETA projects is difficult to achieve unless specific follow-up TA

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projects are planned, as will be happening in the case of TA6306-REG: Mainstreaming MfDR. Under other RETA projects including TA 6088-REG: Purchasing Power Parity Data, TA 6120REG: Social Protection Index, and TA 6278-REG: ICT in Education, good work undertaken in Nepal under the TA projects appears likely to be largely lost. Outcomes from TA 6278-REG: ICT in Education do not appear at this stage to be reflected in national policy or programs. Mechanisms need to be put in place to ensure as far as possible that managers in the Ministry of Education and Sport are aware of the TA and its outcomes and apply them to national education policy. 39. Government Ownership. Despite the effective definition of social protection indexes in the six participating countries, there has been almost no ownership of TA 6120-REG: Social Protection Index outputs in Nepal. The Nepal chapter of the final report provides a useful summary of the rather poor state of social protection in Nepal. However, despite the efforts of the TA consultants, it has not been possible to generate much enthusiasm for social protection. 3. Lessons

40. Several useful lessons can be drawn from the NPRS/PRF program in Nepal. Although most of them are well-known, they may be useful in considering the type of poverty trust fund modality that may succeed NPRS/PRF. (i) Ownership by government or civil institutions is a key factor generating successful TA outcomes and sustainability. The Government has demonstrated high ownership of the TA 4760-NEP: Road Project Impact and its outcomes. It established a working committee, which met regularly and was stated to have been effective despite numerous changes of chairmen (deputy directors general) and (to a lesser degree) of members. PPTA is not a highly desirable use of PRF funds. While TA 4754-NEP: Education Sector was reasonably successful and appreciated by the Ministry of Education, there are questions in relation to the use of trust funds for project preparation. In practice, PRF contributed only $150,000 to a $600,000 PPTA. There is no evidence that the PRF provided any significant value added compared with full funding from TASF. The reason for mixing the funds is not clear, but may relate to limited TASF fund availability at the time of design. No rationale for the fund mixing is mentioned in the TA paper but supplementing a funding shortfall is probably not sufficient justification. Support to Government. TA 4774-NEP: Micro-irrigation was intended to provide funds in order to allow government officers to travel to TA sites and contribute to training. In practice this proved not to be feasible since reportedly the TA had not been included in the national Red Book, which summarizes budget approvals. In order to secure the involvement of government staff, TA consultants were obliged to meet such costs. Group Formation. Sufficient time is needed for group formation and consolidation and for the training of group members and office bearers. Thus there is a need to start beneficiary selection and group formation as early as possible in the TA/project period. Serious issues relating to group viability and sustainability under TA 4759-NEP: Rural Development were noted owing to the lack of time available to work with the groups, and provide training and technical support. In large measure, this has been caused by the delay in the start of the TA and time pressure caused by the impending closure of PRF. Moreover, despite the rather limited time available for group formation and consolidation

(ii)

(iii)

(iv)

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(v)

(vi)

(vii)

(viii)

(ix)

under PRF TA projects, experience indicates that the poor can form and manage groups effectively. The strong water user groups for the rehabilitation of tap stands under TA 4776-NEP: Water Distribution should allow rapid implementation. They demonstrate strong institutional capacity among water users in terms of facility management and the collection of water fees. Resident Mission Management. TA 4774-NEP: Micro-irrigation has been successfully managed by a project officer in NRM since early 2007, indicating that resident mission staff are able to supervise TA projects effectively. Relatively few TA projects have been managed by NRM staff from design to completion. TA 4353-NEP: Service Delivery is almost the only example of this, where an NRM project officer was able to address the numerous problems faced by the TA reasonably effectively and ensure a successful outcome despite fund-flow problems. Level of Support to beneficiaries should be reviewed and carefully assessed, as this could sometimes contribute to worsening the poverty situation within the beneficiary villages. For projects involving conditional cash transfers, it would be desirable to include provisions that could benefit the entire village to avoid conflict and jealousy between recipients of cash transfers and other poor households. The success of projects that involve the provision of livestock to beneficiary households depends on the goodwill of these initial beneficiaries, who are expected to pass on the gift to other households in the village; thus, further support is required of the implementing agency. Projects that provided support to beneficiaries through seed money that is treated as a loan have greatly improved the livelihoods of participating households. However, loan repayments were often re-loaned to farmers or used for other purposes. It would be more beneficial if the following were considered: (i) introduce the concept of savings so that crop failures or adverse vegetable market conditions do not affect the group or its members; and (ii) invite new members to join the group, thus potentially assisting more farmers in moving out of poverty. Training. There is a need to conduct at least basic needs assessment and training plan development before implementation. Pilot projects in particular require such assessments as well as course reports and evaluation so that lessons could be carried forward and built on. Consulting Company Management. The implementation consultant for TA 4774-NEP: Micro-irrigation was instrumental in ensuring the success of the TA through the provision of short-term funding to cover delayed payment advances from ADB. Without such support, the TAs implementation would have been significantly delayed and performance adversely affected. Local Consultants. Local consultants provided effective support to several projects including TA 4353-NEP: Service Delivery, TA 4760-NEP: Road Project Impact and TA 4774-NEP: Micro-irrigation, indicating that in some sectors at least, there is limited need for international consultants.

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COUNTRY REPORT FOR THE REPUBLIC OF THE MARSHALL ISLANDS/PACIFIC

A. Introduction

1.

Coverage

1. One Poverty Reduction Cooperation Fund (PRF) technical assistance (TA) project has been undertaken in the Republic of the Marshall Islands (RMI), the only Pacific country to receive a stand-alone TA (TA 4653-RMI: Urban Waste). In addition, two subregional TA (RETA) projects specifically included RMI (TA 6061-REG: Pacific Fund and TA 6245-REG: Pro-poor Policies), while a regional TA (TA 6109-REG: NGO Partnerships) had one small subproject in RMI. Three other RETA projects have been conducted in the Pacific with PRF funding (TA 6047-REG: Pacific National Poverty Reduction Strategies, TA 6157-REG: Poverty Analysis, and TA 6171-REG: Regional Economic Integration); the first two were briefly reviewed, their performance was assessed, and issues and lessons were identified. The six TA projects in boldface type in Table A12.1 were selected for evaluation. Table A12.1: NPRS-PRF Pacific Program
Subregion/ Country Coverage RMI Funding Source Approval Completion Date ($000) TA Status Original Revised Date NPRS PRF Others 300 Sep-05 Ongoing May-06 Aug-07

TA No. Project Title 4653 Increasing Ownership and Effective Demand for Improved Urban Waste Management and Disposal FSM, FIJ, TON, 6047 National Poverty Reduction 500 Sep-02 Completed Sep-03 Aug-05 TUV Strategies in Pacific (w/ TCR) Developing Member Countries 6061 Pacific Fund for Strategic COO, FIJ, KIR, 50 30 Oct-02 Completed Dec-02 Apr-03 RMI, FSM, NAU, Poverty Analysis (w/o TCR) PAL, PNG, SAM, SOL, TIM, TON, TUV, VAN 6109 NGO Partnerships for 28 countries 1,000 May-03 Completed Dec-04 Apr-07 including 7 in Poverty Reduction (w/ TCR) Pacific region COO, KIR, SOL, 6157 Strengthening Poverty 400 400 200 Dec-03 Ongoing Mar-06 Nov-07 PNG, TUV Analysis and Strategies in the Pacific FIJ, VAN 6175 Making Resource Allocation 500 Jun-04 Completed Dec-06 Apr-07 Pro-poor and Participatory (w/ TCR) in the Pacific 6245 Strengthening Pro-poor 925 1125 Jun-05 Ongoing Jun-08 COO, FIJ, KIR, RMI, FSM, NAU, Policies in the Pacific PAL, PNG, SAM, SOL, TIM, TON, TUV, VAN COO = Cook Islands, FIJ = Fiji Islands, FSM = Federated States of Micronesia, KIR = Kiribati, NAU = Nauru, NPRS = Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies, PAL = Palau, PNG = Papua New Guinea, PRF = Poverty Reduction Cooperation Fund, RMI = Republic of the Marshall Islands, SAM = Samoa, SOL = Solomon Islands, TA = technical assistance, TCR = TA completion report, TIM = Timor-Leste, TON = Tonga, TUV = Tuvalu, VAN = Vanuatu. Source: Regional and Sustainable Development Department.

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2.

Fieldwork Program

2. Four projectsone national, one interregional and two subregional projectswere selected for field evaluation in RMI between 29 September and 11 October 2007. Fieldwork focused on interviews with stakeholders and field inspection of solid waste management in Majuro. No Operations Evaluation Mission (OEM) activities took place on other atolls. The two TA projects without activities in RMI were assessed on the basis of questionnaires completed by mission leaders and TA consultants, but without field verification. B. Program Factors 1. Relationship to National and ADB Strategies

3. Pollution ranked as the third-highest issue in Majuro Atoll (after alcohol abuse and stealing) out of 36 issues in a 2006 community survey. Environmental issues including those associated with poor solid waste management received close attention in Juumemmej, 1 with one of its environmental recommendations stating that the Public Works Department and the Majuro Atoll local government...should immediately develop and put into place an improved solid waste collection and disposal system that minimizes health and environmental risks. Insofar as solid waste management is a problem in all Pacific island states, and particularly on the atolls, the RMI program has the potential to act as a model for other urban centers. The implementation of TA 4653 RMI: Urban Waste was fully in line with strategic objective 2 of the Pacific Regional Strategy 20052009 of the Asian Development Bank (ADB): to enhance the supply of, and demand for, quality basic social services (health, education, clean water, and sanitation). 4. Addressing poverty remains one of ADBs overarching goals. According to the Pacific Regional Strategy 20052009: 2
ADB continues to work closely with Pacific developing member countries (PDMC) governments on poverty assessments, country-specific poverty reduction strategies, and building capacity for poverty analysis. These commitments, generally implemented under poverty partnership agreements between ADB and the PDMCs, have led to a clearer understanding of the priorities of the poor in the Pacific. ADB will adopt the two priorities of the pooropportunities for cash incomes and improved access to basic social servicesas goals for the strategy. In addition to pursuing strategic objectives and key result areas that address poverty reduction goals, ADB will continue to take specific measures through its country and regional cooperation programs to ensure that the priorities of the poor receive targeted attention. This will include support to the Secretariat of the Pacific Community to collect and analyze poverty data at the country level, and assist PDMCs to address poverty issues effectively in national and sector development planning processes.

5. There were three strategic objectives under the strategy: (i) to support an environment conducive to private sector development; (ii) to enhance the supply of, and demand for, good-quality basic social services (health care, education, clean water, and sanitation); and
1

ADB. 2006. Juumemmej: Republic of the Marshall Islands Social and Economic Report 2005. Manila. The report presented economic and social policy issues in RMI. It was published as part of the Pacific Studies Series under TA 6245-REG: Strengthening Pro-poor Policies in the Pacific. ADB. 2004. Responding to the Priorities of the Poor: A Pacific Strategy for the Asian Development Bank (2005 2009). Manila.

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(iii) to promote effective development processes. The Pacific RETA projects contributed to these only indirectly, as they focused on the development and analysis of poverty-related data, or the development of national economic planning and policy studies (TA 6245-REG: Pro-poor Policies) or participatory poverty analyses (TA 6047-REG: Pacific National Poverty Reduction Strategies). 2. TA Design

6. TA design was generally adequate for the RMI TA and Pacific RETA projects. In RMI, the institutional environment relating to solid waste disposal was challenginga fact not fully taken into account during TA design. The Majuro Atoll local government was not a suitable executing agency (EA) and had minimal contribution to the TAs implementation, but no other EA or implementing agency (IA) could be identified to lead the TAs implementation. Despite these setbacks, the TA was highly successful and made a major contribution to mitigating Majuros solid waste problems. 7. The design framework for TA 6157-REG: Poverty Analysis was weak (i.e., there was no distinction between activities and outputs) and not all outputs or activities had clear and measurable objectives. Target countries were not specified and could not have been identified at that time, such that the design framework was too general. The TA underwent three revisions, each of which refined the outputs. More detailed study and stakeholder consultations at the design stage of TA 6061-REG: Pacific Fund might have helped ascertain whether there was less need for the fund. However, the cost of the TA ($50,000) was minimal and the additional cost of full consultation was perhaps not warranted. Issues relating to the institutional environment are quite common in Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies (NPRS)/Poverty Reduction Cooperation Fund (PRF) and have also contributed to the poor performance of small-scale TA projects in other countries, including the Lao Peoples Democratic Republic (Lao PDR). 3. TA Management

8. TA management by ADB has generally been sound. However, supervision was less than desired under TA 6047-REG: Pacific National Poverty Reduction Strategies, which prepared participatory poverty analyses in four countries. While adequate support was provided to most TA projects during implementation, timely publication proved difficult, with 612 months often elapsing between final draft and eventual publication. While delay is inherent in ADB approval and publication processes, more intensive supervision and a clear policy on timely publication might have shortened the publication period and thus increased the relevance of the TA outputs.
C. Performance Assessment

9. The following sections discuss the performance of the PRF program in RMI and RETA projects in other Pacific countries. 1. Relevance

10. Most TA projects are rated highly relevant or relevant. The truancy study undertaken as a sub-TA under TA 6109-REG: NGO Partnerships is rated partly relevant. Although truancy is a major problem in RMI, the survey as designed did not cast much light on the problem and was not assimilated with the requirements of the Department of Education. This highlights the

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difficulty experienced by nongovernment organizations (NGOs) in working with the Government but is also considered a design flaw of the study. A more adequate budget, better design, and involvement of the Ministry of Education could have increased the relevance rating to high. 2. Effectiveness

11. TA 4653-RMI: Waste Management was highly effective, meeting most of its objectives, but mainly because it was instrumental in the establishment of the Majuro Atoll Waste Company (MAWC), which in its 9-month life has introduced remarkable innovations in solid waste management on the atoll. However, funding for preferred waste disposal options will need to be generated quickly if problems are to be avoided. Other significant achievements of the TA included a substantial increase in public awareness of solid waste issues, though the national and local governments have yet to accord the necessary priority to the issues. 12. TA 6245-REG: Pro-poor Policies is rated effective. The Juumemmej report was one of the first to be led by local consultants, making the document more relevant to local needs. However, in common with every other consultant output reported to have been produced in at least the last decade, it was not accepted by the Government, perhaps partly because of the negative tone adopted in the summary of the first 19 out of 20 key issues at the start of the document, which did not sit well with many politicians. However, the report has generated much discussion in parliament, in the press, and within some ministries. Thus, the somewhat controversial tone of the report had both positive and negative effects. OEM considers the sub-TA somewhat under-resourced, thus limiting the analysis in several sectors (particularly health care and education) and the contribution of the document to sectoral strategy and policy. Other RETA outputs that covered or included RMI were reports on taxation and debt management. Both these studies were conducted well, but their effectiveness was limited by the inability of the Government to discuss them in detail or take recommendations forward into the policy arena. 13. From a discussion and review of the TA outputs, other larger RETA projects are or were effective. Smaller RETA and sub-RETA projects have been only partly effective (TA 6061-REG: Pacific Fund) or ineffective (TA 6109-REG: NGO Partnerships). TA 6061-REG: Pacific Fund could have been more effective if the feasibility of establishing a Pacific Poverty Fund had been assessed in more detail, allowing the TA to make a greater contribution to the debate on whether the development of poverty statistics would have achieved a better focus under a specific fund or as a subset of general statistics improvement. Moreover, staff turnover also had a adverse impact on the outcome of the RETA. The truancy study under TA 6109-REG: NGO Partnerships was ineffective since it contributed little to the national debate on truancy, did not provide useful information to government, and did little to build NGO capacity. However, the collaboration between NGOs was positive and a first for RMI. 3. Efficiency

14. TA 4653-RMI: Urban Waste was conducted efficiently. Most TA activities were completed in a timely manner, though there were problems at inception, and in the recruitment of the engineering consultant. In terms of economic efficiency, there would appear to be little doubt that high economic and social returns will be generated. Provided MAWC can continue to exist, it has the potential to further improve the environment on Majuro main island, on Bikini Island off the end of Rita, and on Ebeye.

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15. TA 6245-REG: Pro-poor Policies also may achieve much in the medium term by raising political awareness of the issues facing RMI. The RETA has been implemented in 11 Pacific developing member countries (DMCs) (out of 14 DMCs originally planned) and facilitated the preparation of a range of economic reports. Discussions were held with stakeholders in RMI, where activities focused on (i) the preparation of Juumemmej (as part of the Pacific Island economic report series), (ii) a study of taxation, and (iii) a debt overhang study. All three outputs appear to have been well prepared and potentially useful. However, ownership in RMI is limited and, in common with all or almost all other TA reports in RMI, the TA outputs have not been officially approved. Juumemmej is nonetheless having significant impact particularly in raising the profile of various issues facing the RMI economy and society. All three RMI outputs have experienced long delays between final draft and eventual publication, suggesting that ADBs publication processes may need to be reviewed to improve the timeliness and thus the impact of TA outputs.
D. Overall Assessment, Issues, Lessons, and Recommendations

1.

Overall Assessment

16. The NPRS/PRF program in RMI is rated successful. TA 4653-RMI: Urban Waste is rated highly successful, though the rating for sustainability was lowered owing to funding uncertainties facing the Majuro Atoll Waste Company. Despite implementation delays, the commendable work of the consultants in a difficult institutional environment merits a rating of highly efficient. The two small regional TA projects were both partly successful, while the three larger RETA projects are each rated successful. Overall, the program achieved a success rating of 67% successful and highly successful. However, if performance were weighted by cost, the ratio would exceed 90%. A summary of TA ratings against evaluation criteria is in Table A12.2. Table A12.2: Summary of TA Ratings against Evaluation Criteria
Short Name TA 4653-RMI: Urban Waste TA 6047-REG: Pacific National Poverty Reduction Strategies TA 6061-REG: Pacific Fund TA 6109-REG: NGO Partnerships TA 6157-REG: Poverty Analysis TA 6245-REG: Pro-poor Policies Overall Rating Rating for Relevance Rating for Effectiveness Rating for Efficiency Rating for Sustainability Overall Rating Relevance 3 2 1 2 2 2 Effectiveness 3 2 Efficiency 3 2 Sustainability 2 2 Overall HS S

1 2 1.5 PS 1 1 0 PS 1 2 2 S 2 2 2 S Unweighted Average Score = 1.81 Successful 3 = Highly Relevant, 2 = Relevant, 1 = Partly Relevant, 0 = Irrelevant 3 = Highly Effective, 2 = Effective, 1 = Less Effective, 0 = Ineffective 3 = Highly Efficient, 2 = Efficient, 1 = Less Efficient, 0 = Inefficient 3 = Most Likely, 2 = Likely, 1 = Less Likely, 0 = Unlikely Highly Successful (HS) > 2.7 Successful (S) 1.6 to < 2.7 Partly Successful (PS) 0.8 to <1.6 Unsuccessful (U) < 0.8 NGO = nongovernment organization, REG = regional (technical assistance), TA = technical assistance. Source: Operations Evaluation Mission estimates.

2. 17.

Issues

A number of issues emerge from the projects reviewed.

18. Relationship to Poverty. The direct links of PRF activities to poverty have been limited. TA 4653-RMI: Urban Waste will certainly benefit the poor, but mainly as part of wider society.

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However, because the poor live in crowded conditions (e.g., in Jenrok on Majuro), waste disposal is a particular problem since there is limited land available in which they can bury waste. They are therefore more prone (to some degree) to dispose of their wastes on the reefs, from where much of the wastes are removed at high tide. Inadequate waste management also presents disadvantages for the poor (i.e., mostly from a health perspective), who are more likely to live close to unhygienic areas. 19. Scale of TA. The activities of small-scale TA projects may result in limited outcomes. A case in point was the truancy study under TA 6109-REG: NGO Partnerships. This had the potential to contribute to a better understanding of truancy in Majuro and also to promote relationships among NGOs and with government. However, it was too small and remote from ADB headquarters in Manila to justify the level of support that would have been required to achieve these outcomes. The small RETA TA 6061-REG: Pacific Fund was also only partly successful because of lack of donor support for the establishment of the fund, resulting in low effectiveness. 20. Ownership of a TA is an important parameter of success. The RMI Government demonstrates little ownership of TA projects. According to the Economic, Policy Planning, and Statistical Office, the Government has approved no TA report in the last decade or so. Whether reports were approved during earlier administrations is uncertain. There is no formal mechanism for reports to be accepted except through the Nitijela (parliament), which seldom, if ever, has the time or interest to formally debate and approve reports. While approval or disapproval is not itself a critical parameter, the failure of the Government to approve any TA report at least in recent times has two implications (i) a pronounced lack of ownership, and (ii) a handout mentality, as highlighted in the Juumemmej report. Given this situation, it is questionable whether TA projects should have been or should be allocated to RMI. The main justification for continuing with a TA program seems to be the hope that if sufficient TA is applied, in the end the sheer mass of unaccepted reports will cause a change. The significant impact of TA 4653-RMI: Urban Waste and its highly successful rating is thus remarkable. The TAs success can be attributed to the highly participatory manner of implementation, which was purposely designed to build ownership and effective demand. 21. Timeliness of TA Outputs. TA 6245-REG: Pro-poor Policies undertook the production of the Juumemmej report efficiently. However, printing in ADB took around 1 year. Since the impact of a report is largely based on its immediate relevance, a delay of even 3 months in publication is not acceptable. It is appreciated that staff focus largely on designing, implementing, and troubleshooting TA projects, and moreover have limited time and resources. Nonetheless, after considerable resources had been spent on the production of a useful study, they should have seen to its speedy printing and distribution. 22. TA Resources. TA projects must be backed by adequate resources. In the view of OEM, the Juumemmej report, funded under TA 6245-REG: Pro-poor Policies, did not have enough resources at its disposal. While the report is commendable and has made considerable impact, greater impact could have been achieved if it had contributed substantially to the policies and strategies for the sectors analyzed. A review of the reports analyses and recommendations suggests that the recommendations in the macroeconomic and fiscal management sectors were useful. The findings of the Juumemmej report have been prioritized by the Government and were in fact discussed in a policy summit and in tax retreats. A special session of the Nitijela was also held to discuss the conclusions and recommendations of the study.

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3. 23.

Lessons

A number of lessons can be derived from the PRF program in RMI: (i) (ii) (iii) TA projects, such as TA 4653-RMI: Urban Waste, can break a policy bottleneck and achieve much if well thought out and implemented. TA projects need to be backed by adequate resources if they are to be effective. Small-scale TA projects and studies have the potential to be effective but need to be carefully designed and adequately supervised. For example, the truancy study could have involved the Economic, Policy Planning, and Statistical Office in survey design and processing, and the Ministry of Education in the assessment of the questions to which answers were needed. Reports (such as the Juumemmej report and the reports on taxation and debt overhang) can be useful to a Pacific country, but encouragement may be needed from ADB to promote their adoption. Reports need to be completed and published quickly if they are to remain relevant and achieve maximum impact. TA projects can be instruments of change, particularly in presenting new ideas and approaches. In order for the proposed changes to be more effective, mission leaders paid particular attention to media engagement and the use of participatory approaches in project implementation (through the involvement of civil society organizations), reports and case studies written in the vernacular, continuous follow-ups with government, and enhanced partnerships with other donors (such as Australian Governments Overseas Aid Program [AusAid] and New Zealands International Aid & Development Agency [NZAID]).

(iv)

(v) (vi)

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RESPONSIVENESS OF CASE-STUDY TECHNICAL ASSISTANCE TO NPRS AND PRF FUND OBJECTIVES Table A13.1: Responsiveness of Case-Study TA Projects to NPRS Objectives (Based on Questionnaire Results)
3781 4627 4644 6047 6120 6157 6171 NPRS Objective UZB LAO VIE REG REG REG REG Average 2.0 1. Formulate national poverty reduction 3 2 2 3 2 2 strategies, action plans, and implementation mechanisms 2. Establish M&E system 2 2 2 3 1.3 3. Establish a conceptual framework for analysis 3 2 2 2 2 2 3 2.3 4. Analyze impact of public programs and 3 2 3 3 2 2 2.1 public policies on poverty 5. Assess and rate DMC levels of governance 2 2 0.6 1.6 6. Formulate systematic alternative strategies 2 3 3 3 for participatory processes 7. Promote implementation of national poverty 3 3 3 2 2 1.9 reduction strategies 8. Coordinate external funding and division of 3 2 1 3 1.3 labor on the basis of national poverty reduction strategies 9. Strengthen capacity of staff and other 3 3 3 2 3 2.0 stakeholders DMC = developing member country, LAO = Lao Peoples Democratic Republic, M&E = monitoring and evaluation, NPRS = Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies, REG = regional (technical assistance), TA = technical assistance, UZB = Uzbekistan, VIE = Viet Nam. Notes: (i) Extent of average contribution by TA: > 2.7 = highly responsive, 1.6 to < 2.7 = responsive, 0.8 to < 1.6 = partly responsive, < 0.8 = low response. (ii) Shaded cells indicate moderate to high response to NPRS objectives. Source: Operations Evaluation Mission estimates.

Table A13.2: Responsiveness to PRF Objectives in Case-Study Countries (Based on Questionnaire Results)
PRF Objective 1. Assist in policy dialogue and strategy formulation on poverty reduction Lao PDR 1.2 NEP 1.9 PRC 2.3 RMI/Pacific 2.0 Average 1.9

2. Develop new programs and projects with increased 2.3 2.5 1.7 2.4 2.2 focus on poverty reduction 3. Monitor and assess the poverty reduction impact at 0.6 1.4 0.8 0.8 0.9 the project, meso, and macro levels 4. Launch pilot poverty reduction activities to influence 1.2 2.0 0.8 0.8 1.2 future loan design 5. Involve broader stakeholder consultations at all 1.1 1.5 2.0 1.4 1.5 stages of design and implementation 6. Strengthen ADBs role as the regional development 0.6 1.5 1.8 1.0 1.2 bank for Asia and the Pacific to promote poverty reduction ADB = Asian Development Bank, PRC = Peoples Republic of China, Lao PDR = Lao Peoples Democratic Republic, NEP = Nepal, PRF = Poverty Reduction Cooperation Fund, RMI = Republic of the Marshall Islands. Notes: (i) Extent of average contribution by TA: > 2.7 = highly responsive, 1.6 to < 2.7 = responsive, 0.8 to < 1.6 = partly responsive, < 0.8 = low response. (ii) Shaded cells indicate moderate to high response to PRF objectives. Source: Operations Evaluation Mission estimates.

MANAGEMENT RESPONSE TO THE SPECIAL EVALUATION STUDY ON THE ASIAN DEVELOPMENT BANKS TECHNICAL ASSISTANCE TRUST FUNDS: POVERTY REDUCTION COOPERATION FUND AND COOPERATION FUND IN SUPPORT OF THE FORMULATION AND IMPLEMENTATION OF NATIONAL POVERTY REDUCTION STRATEGIES On 29 August 2008, the Director General, Operations Evaluation Department, received the following response from the Managing Director General on behalf of Management: I. General Comments

1. We welcome OEDs Special Evaluation Study (SES) on ADBs Technical Assistance (TA) Trust Funds: Poverty Reduction Cooperation Fund (PRF) and Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies (NPRS). We find the study comprehensive and its assessments fair. We especially appreciate the in-depth field assessments of case studies and the TA completion report analysis. 2. Positive Contribution and Outcomes. We support the overall finding of the SES that NPRS and PRF have made a significant contribution to policy and strategy development for poverty reduction. We are pleased to learn that the TAs supported by these funds showed positive to highly-positive outcomes in policy and strategy formulation, improvement of monitoring and evaluation capacity, mainstreaming gender into poverty reduction strategies and environmental management. We confirm that the data and pilot results generated through some of these TAs have been widely-used or replicated. 3. TA Management and Disbursements. The SES also correctly points out some of the recurrent issues in TA management, namely the administrative overburden on resident missions staff, the delayed funds flow in some cases, and time overruns. As the SES recognizes, the ongoing TA reforms and the further dissemination of the new Handbook on Disbursements are expected to contribute to improved management. We also support the recommendation on streamlining disbursement systems. The ongoing enhancement of TA Information System should contribute to this. II. Specific Recommendations Recommendation: Before the end of 2008, ADB Management and the Regional and Sustainable Development Department (RSDD) to undertake analysis of the need for a replacement fund, guided by ADBs Strategy 2020 and using SESs findings. 4. The NPRS and PRF were established in 2001/2002 in the context of ADBs adoption of poverty reduction as its overarching goal. The NPRS was designed as a facility to assist DMC governments in preparing and implementing their national poverty reduction strategies. The PRF was intended to support technical assistance and pilot activities that would demonstrate how ADB operations could have greater relevance to poverty reduction. The SES concludes that both funds largely met their objectives. 5. We, therefore, do not agree with the recommendation for undertaking an analysis of the need for a replacement fund. We believe, however, there is a

continuing need, as part of the Strategy 2020 implementation, to follow up the successes achieved including mainstreaming innovations introduced under the funds. This work has begun, but under a broader context than envisaged in 2001/2002. Examples include the poverty dimensions of ADBs emerging climate change initiatives and the increasingly widespread incorporation of participatory approaches in ADB operations. Financing for these and other poverty reduction efforts is coming from a number of sources. Recommendation: By 2009, Private Sector Department, RSDD, and the various regional departments to work out a strategy to enhance partnership with the private sector on ADBs poverty reduction initiatives. 6. We do not support the development of a strategy. However, we believe it would be useful to develop an action plan on public-private partnership for direct poverty reduction initiatives. Some such initiatives could include corporate social responsibility, microfinance provision by commercial banks, promoting social enterprises, and innovative financing mechanisms for the private firms to partner with nongovernment organizations. Some of such activities were already supported by NPRS and PRF in Cambodia and Lao Peoples Democratic Republic.

DEVELOPMENT EFFECTIVENESS COMMITTEE Chairs Summary of the Committee Discussion on 4 November 2008 Special Evaluation Study - Asian Development Banks Poverty Reduction Technical Assistance Trust Funds: Poverty Reduction Cooperation Fund and Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies

1. The special evaluation study (SES) examined the performance of the management of ADBs poverty reduction technical assistance (TA) trust funds, namely, Poverty Reduction Cooperation Fund (PRF) and Cooperation Fund in Support of the Formulation and Implementation of National Poverty Reduction Strategies (NPRS); and the operations of the TA projects financed by these funds. 2. Overall, the SES found the management and TA operations funded under the NPRS and PRF funds to be successful. The SES undertook country case studies of four developing member countries (DMCs)Lao Peoples Democratic Republic (LAO), Republic of the Marshall Islands (RMI), Nepal (NEP), and Peoples Republic of China (PRC). It conducted a desk study of all ongoing and completed NPRS and PRF TA reports and interviewed relevant stakeholders. 3. Given that NPRS and PRF funds have made a significant contribution to policy and strategy development for poverty reduction in DMCs and their closure would leave a significant gap in ADBs assistance to poverty reduction initiatives, the SES recommends that Management undertake an analysis to determine whether a replacement fund is needed. Management, however, does not see any need for an analysis since the trust funds have met their intended objectives. Instead, Management believes that there is a continuing need to build on further mainstreaming innovations from NPRS and PRF as part of the Strategy 2020 implementation. Director, OED1 sought clarification from Management on how the gap created by the closure of the NPRS and PRF funds could be addressed. 4. Deputy Director General, RSDD explained that the objectives of the trust funds are already mainstreamed to a large extent, with lessons recommended for these funds already incorporated and innovations integrated into many programs and ADB-wide initiatives, like in its support for the climate change initiatives. The gap can be filled by existing trust funds that are catalytic in meeting Strategy 2020s key agenda, including, inclusive growth. ADB recognizes the need to have these funds harmonized and implemented in the most cost-effective way. 5. The SES also notes that the potential of public-private partnership (PPP) for poverty reduction is underutilized. It recommends that ADB management formulates an operational strategy to mobilize private sector partnership for poverty reduction in DMCs. Management does not support formulating a strategy, but found it more useful to develop an action plan on PPP for direct poverty reduction, instead. Director, OED1 inquired on how and when such action plan will be formulated and implemented by the Management. 6. Deputy Director General, RSDD emphasized the substantial progress being reached over time all throughout the ADB on PPP, for instance, through nonsovereign public financing facility. The Private Sector Operations Department (PSOD) and regional departments (RDs) have been working closely together across themes and sectors to align PPP with Strategy 2020. At the recent Board and Management Retreat, the President mentioned that a task force will be established and will plan, among others, to make private sector operations fully congruent with

Strategy 2020. Extensive efforts are also being made by PSOD to make its operations fully developmental. 1 7. DEC Chair raised concern on the service fee (5% of the actual trust fund contribution) that ADB charges to donors and used for administration costs. He noted the lack of accounting of the cost to ADB on managing the funds. One DEC member noted the lopsided allocation mentioned in the SES, and asked whether the service fees could be booked under ADBs administrative budget, or diverted to resident missions (RMs) to help them implement the projects under the two funds better. 2 8. On the issue of proliferation of trust funds, DEC Chair also sought clarification on guidelines for ADB in determining minimum size of trust funds that it would accept. Director, OED1 mentioned that the ADBs Financing Partnership Strategy may help further address the issue of proliferation of trust funds. There is currently no policy in the amount of funds that donors can put in multi-donor funds, but large funds are always encouraged. 9. DEC members raised concerns on delays in project implementation under the trust funds, and on time overruns in some projects where there were overoptimistic assumptions about implementation capacity and not enough time allocated for TA implementation. 10. DEC Chair inquired about possible options in carefully engaging non-governmental organizations (NGOs). Director, OED1 noted the need to ensure that NGOs engaged by ADB have good standing and credibility, and have adequate capability to meet ADB requirements. Conclusions 11. DEC noted the studys finding that TA trust funds, namely PRF and NPRS, have broadly achieved their objectives. Particularly notable was the high success rate in the PRC that resulted in an improvement in the overall performance ratings of the PRF and NPRS operations. 12. DEC was concerned on time overruns in many of the projects under the two funds, the overoptimistic assumption about the implementation capacity, and how the allocation of insufficient time for TA implementation was common. 13. DEC also noted the SESs finding that while NGOs were useful, great care should be exercised in recruiting NGOs of the appropriate variety. One DEC member emphasized the important role of the public sector in poverty reduction while recognizing the role of NGOs. 14. DEC discussed the need for having guidelines on the minimum size of a trust fund to avoid the proliferation of such funds. In this context, the 2008 TA reform paper 3 should be implemented with full force.

At a previous DEC meeting, Director General, PSOD mentioned that a private equity funds strategy in the context of capital markets development is being developed. 2 OED, in consultation with BPBM, OCO, and CTL provided information to the DEC member that the administration fee charged to trust funds by ADB are not direct and identifiable, but are calculated on actual disbursements. The resulting amount is transferred to ADBs OCR and recognized as income in OCR. Reimbursements of such administration fees are reflected as apportioned cost for administering the trust funds and deducted in arriving at the net budgeted internal administrative expense but are not allocated to any departments. 3 Increasing the Impact of the Asian Development Banks Technical Assistance Program (DOC.R87-08 issued on 6 May 2008)

15. DEC opined that the management of the trust funds needs to be coordinated, and donors guidelines and procedures should be harmonized. In this context, the Committee felt that a harmonization of the NPRS and PRF objectives could have been useful. Though the NPRS was planned to be an umbrella facility, it turned out to be a single-donor fund. 16. DEC was of the view that there was no particular need for a fund to replace the PRF and NPRS. However, it noted that the availability of grant trust funds to support poverty reduction strategy in Group C countries, which have access to OCR resources, was particularly useful and that the gap created by the closure of the NRPS and PRF funds should be addressed. Furthermore, DEC noted that Management has already decided to have a working group that would provide recommendations to fully align private sector-related operations with Strategy 2020, and to coordinate work of the RDs and PSOD for private sector development and effective private-public partnerships, among others. There may be merit in that working groups report addressing the issue of private sector involvement in poverty reduction, as well as PPP initiative for this purpose.

Ashok K. Lahiri Chair, Development Effectiveness Committee