New Year shakeup planned for Asian Development Bank

New Year shakeup planned for Asian Development Bank

P. Parameswaran, Agence France-Presse, Manila

The Asian Development Bank (ADB) is to undergo one of the
biggest revamps in its 35-year history as part of a vociferous
campaign by the multilateral institution to free the region of
poverty, bank officials said.

The organizational structure of the Manila-based bank will be
realigned for greater accountability and efficiency with a new
"watchdog" department introduced as part of changes to be
introduced on Jan. 1, they said.

"The thrust of the new organizational structure is to bring
the bank closer to developing member countries and beef up
efficiency to better accomplish our overarching goal -- poverty
reduction," Ann Quon, ADB's assistant chief of external
relations, told AFP.

The Asia-Pacific region houses the majority of the world's
poor and disadvantaged.

Quon said five new regional departments would be introduced to
cater to the bank's Asia-Pacific membership, replacing the
current practice of breaking up the region into what the bank
termed as the East and West.

The new departments will cover defined geographic areas --
East and Central Asia, Mekong, Pacific, South Asia and Southeast
Asia -- and report to the bank's operational vice-presidents.

"With more departments covering fewer countries, there will be
greater country focus and sub-regional cooperation," Quon said.

"Broad-based issues such as poverty reduction, good governance
and strengthening of public sector capacity require a countrywide
approach," she explained.

Quon said as poverty was a complex problem, deeply embedded in
the political, governance and social frameworks of a country, ADB
wanted to tackle it in an "integrated, cross-sectoral manner."

The ADB would also establish a new department to develop and
monitor sector-based policies and guidelines as well as be
responsible for the bank's regional cooperation strategy.

The new regional and sustainable development department will,
among others, act as a watchdog and will monitor compliance with
all sector policies.

The ADB will also upgrade its unit dealing with the private
sector, with its responsibility covering, among other areas,
project finance, capital markets, investment funds management and
risk management.

ADB president Tadao Chino had chaired a panel of senior bank
staff in conducting the revamp with help from external advisers,
including from the World Bank and United Nations Development
Program (UNDP).

Experts say some of the weaknesses in the ADB are in the areas
of project implementation, training and risk management as well
as lack of in-depth analysis and consultations with key
stakeholders of projects.

The bank has also been criticized for not working closely
enough with groups like the 10-member Association of Southeast
Asian Nations (ASEAN) and the Asia-Pacific Economic Cooperation
(APEC) forum in promoting regional cooperation.

The ADB, set up in 1966, provides finance and technical
assistance to developing member countries as part of its broad
policy to eradicate poverty.

The bank has 59 member economies, of which 43 are in the Asia-
Pacific.

Its loans typically involve conditions aimed at improving
development performance. Last year, ADB approved provided loans
totaling about US$6 billion.