16 March 2004
This report shows that the ADB almost never complies with the requirements of its Anticorruption Policy to explicitly address corruption issues in its operations
"Zero Tolerance"? Assessing the Asian Development Bank's Efforts to Limit Corruption in its Lending Operations
by Steve Herz
Abstract: This new report evaluates the ADB’s efforts to limit the incidence and impact of corruption in its lending operations. Although the ADB has taken a strong rhetorical stance against corruption in the projects and programs that it supports, the report demonstrates that the ADB almost never complies with the requirements of its Anticorruption Policy to explicitly address corruption issues in its reports, assessments, and evaluations. At best, ADB’s treatment of corruption issues was found to be sporadic and superficial.
The report finds that several factors, including a lack of guidance for staff on how to assess corruption risks, and a strong pressure on staff to finance new projects rather than to ensure that current ones are successful, explains why ADB’s record in complying with the requirements of the Anticorruption Policy is so poor. The report concludes by recommending steps that the ADB should take to improve the manner in which corruption issues are addressed throughout its operations.