Learning Curves

OED
August2008

ADBsPovertyReduction TechnicalAssistanceTrustFunds

Twopovertyreductiontechnicalassistancetrustfundswereestablishedin2001and2002to helpADBserve600millionoftheworldspoor.In2008,anindependentevaluationrated thesefundsasuccess. Theclosureofthetwofundson31December2007opensagapinsupporttopoverty reductioninitiativesitmayneedtobefilled.Forinstance,ADBsStrategy2020envisionsan increasingrolefortheprivatesector,yetpublicprivatepartnershipsforpovertyreduction arenowunderutilizedastrategytoenhancethemmayneedtobeworkedout.

DevelopmentBanksPovertyReductionTechnical AssistanceTrustFunds:PRFandNPRS 1 astheyare TheAsiaandPacificregionishometo61%ofthe closelylinkedandfullcommitmentwasachievedin worldspopulation.Despiteremarkablesustained 2005.Thestudyassessedthefundsagainsttheir economicgrowthsincethe1990s,theregionstillhas objectives;gaugedthecontributionsandthelinkstothe 600millionpoor.ThereseemstobetwoAsiaand achievementofADBsstrategicobjectives;lookedfor Pacificregions:onebenefitingfromglobalizationand positiveoutcomes;evaluatedperformancewithcountry technologicalprogress;theothercomprising casestudies(intheLaoPeoplesDemocraticRepublic, underdevelopedandfragileeconomies.Insomeparts, RepublicoftheMarshallIslands,Nepal,andPeoples highratesofpopulationgrowtharedeepeningpoverty. RepublicofChina);anddrewlessonstomake In1999,theAsianDevelopmentBank(ADB)made recommendations. povertyreductionitsoverarchinggoal.ThePoverty Thestudyemployeddeductiveandinductive ReductionStrategydrawnupthatyearrestedonthree approaches,followingtheGuidelinesforthe pillarspropoorsustainableeconomicgrowth, PreparationofCountryAssistanceProgramEvaluation inclusivesocialdevelopment,andgoodgovernance. Reports.Adeskstudywasmadeofall106technical TheCooperationFundinSupportofthe assistanceprojects(approvedfrom20022007)financed FormulationandImplementationofNationalPoverty underthePRF,andofall19technicalassistanceprojects ReductionStrategies(NPRS)waslaunchedin2001on (approvedfrom20012005)financedundertheNPRS, behalfoftheMinistryforDevelopmentCooperation toestimatetheirlevelofcontributiontotheachievement oftheNetherlands.ThePovertyReduction ofobjectivesatthedesignandcompletionstages.The CooperationFund(PRF)wassetupin2002onbehalf outcomesofbothprogramswerealsoassessedfromall oftheDepartmentforInternationalDevelopmentof completedtechnicalassistanceprojectswithcompletion theUnitedKingdom.(Twootherrelatedfundsarestill reports.Thestudyscoveragewasconsidered ongoing:thePovertyandEnvironmentFundwas representativeofthesupportofferedbythetwofunds. createdin2003withbackingfromtheMinistryof Atthestrategiclevel,therelationshipandlinkstoADBs ForeignAffairsofNorwayandtheSwedish goalforpovertyreduction,assetoutintheEnhanced InternationalDevelopmentCooperationAgency;and PovertyReductionStrategyandtheLongTerm thePeoplesRepublicofChinaPovertyReductionand StrategicFramework,wereanalyzed. RegionalCooperationFundstartedin2005.) SummaryofFindings In2007,theOperationsEvaluationDepartment conductedaSpecialEvaluationStudyontheAsian Themainlessonsderivedfromthestudywere:(i) Background
Operations Evaluation Department Asian Development Bank 6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines Tel +63 2 632 4444; Fax +63 2 636 2444; evaluation@adb.org; www.adb.org/evaluation/

adequateanalysisduringdesignandconsultationswith executingandimplementingagenciesontheplanned outcomesandthewaythesecanbeachievedare essential;(ii)ownershipoftechnicalassistanceprojects bycountryandotherrelevantpartnersisasignificant determinantofsuccess;(iii)mosttechnicalassistance projectswithnongovernmentorganizationinvolvement showstrongoutcomes,suggestingthatthese organizationscantakeonstrongerrolesinpoverty reductionefforts;(iv)fulldelegationofprojectdesign andmanagementtoADBbythedonorswasamajor positivefactor;(v)ADBmustprovideclearer,user friendlyoperationalguidancetoexecutingagencies; and(vi)flexibilityisneededinprojectimplementation todealwithconditionsthatarebeyondthecontrolof theprojectmanagement. Thestudyidentifiedthefollowingmainissues:(i) thetwotechnicalassistancetrustfundshavemadea significantcontributiontopolicyandstrategy developmentforpovertyreduction,andtheirclosure willleaveasignificantgapinADBsassistanceto povertyreductioninitiatives;(ii)ADBscomplex procedures,especiallyitsfinancialarrangements,tend todelayimplementation;(iii)publicprivate partnershipsinsupportofeconomicgrowthandsocial developmentareunderused;and(iv)ADBsprimary focusonloanactivitieslimitstheinstitutionalincentives forADBstafftoworkontechnicalassistanceprojects. Themainconclusionsofthestudywere:(i)the technicalassistanceprojectsevaluatedinthecountry casestudiesweresuccessful;(ii)thetwotechnical assistancetrustfund programs EfficiencythatLeadstoSustainability showed (TA4760NEP) positive EffectiveCollaborationwithLocalGovernment outcomes, andCommunity(TA4142PRC) witha ComplexFinancialArrangementsMayHamper majorityof ImplementationandLimitImpact the (TA4353NEP) technical assistanceprojects demonstratinghighly positiveoutcomes,particularlyinpolicyandstrategy formulation,improvementofmonitoringand evaluationcapacity,mainstreamingofgenderinto evaluationcapacity,mainstreamingofgenderinto povertyreductionstrategies,andenvironmental management;(iii)technicalassistanceproject managementfromADBsresidentmissionshas significantbenefitsbutmayoverburdentheirlimited numberofstaffunlessADBsfinancialarrangements
Learning Curves available @ www.adb.org/evaluation/

andreportingsystemsaresimplified;(iv)keyareasfor futuresupportrelatetothewiderapplicationofa numberofpoliciesandprogramsresultingfrom interventionsunderthetwotechnicalassistancetrust funds;(v)likemostothertechnicalassistanceandloan projects,thosefinancedunderthetwotechnical assistancetrustfundsoftenexperiencedtimeoverruns, althoughtheextensionsaremarginallyshorteron averagethanthosefinancedbytheJapanSpecialFund orTechnicalAssistanceSpecialFund;and(vi)thenew TechnicalAssistanceDisbursementHandbookwillbe ausefulstartingpointforimprovementsintheefficiency ofdisbursements. Recommendations TheclosureoftheNPRSandPRFraisesthequestion ofwhetherareplacementfundisrequired.Itis beyondthescopeofthisstudytomakeadefinitive recommendation.Thiswouldentailfurtheranalysis byADBsManagementandtheRegionaland SustainableDevelopmentDepartment,guidedby ADBsStrategy2020andusingthefindingsofthe study.Theanalysisshouldbeundertakenbeforethe endof2008. Giventheincreasingroleoftheprivatesectorin ADBsStrategy2020andtheunderutilizedpublic privatepartnershipsinADBspovertyreduction initiatives,ADBanditsdevelopmentpartnersmust workmorecloselytogethertoenhancepartnership withtheprivatesectorinthisarea.WithinADB,the PrivateSectorOperationsDepartment,theRegional andSustainableDevelopmentDepartment,andthe variousregionaldepartmentsshouldworkouta strategyforthispurposeby2009. Feedback WhentheseLearningCurveswereprepared,ADB ManagementsResponseandtheChairsSummaryof theDevelopmentEffectivenessCommittee Discussionswerenotavailablefordisclosuretothe public.ThestudywascompletedinJuly2008.
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ADB.2008.SpecialEvaluationStudyontheAsianDevelopment BanksPovertyReductionTechnicalAssistanceTrustFunds: PovertyReductionCooperationFundandCooperationFundin SupportoftheFormulationandImplementationofNational PovertyReductionStrategies.Manila.Available: http://www.adb.org/documents/ses/reg/sstreg200818/sst reg200818.pdf

Team Leader: Kus Hardjanti; Tel +63 2 632 6715; khardjanti@adb.org