15 March 2004
The purpose of this report is to present recommendations from civil society groups for advancing important and timely reforms at the Asian Development Bank. The report consists of five briefings which highlight case study examples to demonstrate various shortcomings and concerns with different aspects of ADB performance over the past several years. We make these recommendations at a time when the ADB is negotiating with donor governments their level of contribution for the Asian Development Fund. The briefings in this report are:
- ADB and Accountability
- ADB and Corruption
- ADB and Forestry
- ADB and Poverty Reduction
- ADB and Transparency
First, the Accountability piece includes proposals for changes in the ADB’s staff incentives structure that would help the Bank be a more accountable and effective institution. Second, the Corruption briefing recommends that the Bank adopt measures to curb the challenges it faces as a result of corruption in the region, as well as within ADB funded Projects, in order to ensure that its funding is used for its intended purposes only. Third, regarding the ADB and Forestry we propose that the ADB strengthen its policy framework by adopting a new Forest Policy that truly works toward safeguarding the region’s forests; we recommend that this policy review be conducted in a participatory and transparent manner. Fourth, in our discussion of the ADB and Poverty Reduction we recommend that the ADB assess the extent to which it is accomplishing its overarching goal of alleviating poverty in Asia, and recommend that the Bank adopt measures that will ensure its initiatives are targeted to benefit the region’s poorest communities in a meaningful way. Finally, the Transparency briefing proposes measures the ADB should adopt in order to allow for the informed participation of affected groups and ensure good governance in the ADB’s operations.
This is an opportune time for the Bank and its member countries to evaluate the effectiveness of ADB lending overall. The ADB cannot be an effective development institution if it fails to evaluate the development impacts of its lending and assess that its goals are being met; invests in projects that are harmful to the poor and the environment; and fails to include citizens in the development decision-making that affects their daily lives. We urge donors to make use of this important opportunity to influence the way the ADB operates. We believe that additional funding for ADF should be approved only after securing commitment from the institution that these critical reforms would be implemented within a specific timeframe.
If sufficient progress on these important issues is not made, we fear that funds will not meet the development objectives the ADF donors envision for this replenishment round.
Sincerely,
Bank Information Center (BIC)
Centre for Organisation Research & Education (CORE)
Environmental Defense
NGO Forum on ADB
Oxfam Community Aid Abroad