The effectiveness of DFID’s engagement with the Asian Development Bank

Review

We published this review in July 2012, and awarded a green-amber score with four recommendations. Overall, this review found that, as a shareholder, the UK has had a positive influence on ADB’s strategy, policy and internal reform – however, these were yet to result in ADB achieving its own impact targets. Through the replenishment of the ADF, DFID had promoted a continuing focus on inclusive growth, gender, climate change and operational effectiveness.

Findings

In order to improve ADB’s delivery of outcomes, DFID needed to influence the Bank to improve project management and real-time monitoring. As a co-financier, DFID engaged effectively with ADB to develop country strategies and co-ordinate amongst donors. DFID should have, however, provided greater support to ADB during implementation to improve the performance of co-financed projects, particularly in areas where ADB has less expertise.

Our review is more critical than the Multilateral Aid Review’s (MAR’s) conclusions in respect of ADB, largely reflecting our greater concentration on project delivery.

Recommendations

1. Where DFID is co-financing projects with ADB, it should be clear about the relative contributions of each partner, strengthen its initial risk assessment and resource accordingly and improve its real-time monitoring and evaluation.
2. As a shareholder, DFID should concentrate its influence on improving the impact of ADB and ADF projects, in particular by strengthening project design, implementation and independent evaluation.
3. Ad hoc discussions between DFID country offices, DFID headquarters and the UK representative in ADB headquarters should be formalised in quarterly strategic reviews for the five DFID focus countries where ADB activity is significant.
4. DFID needs to ensure that it always has the right information to make choices about when and how to work with ADB. If DFID wishes to use the MAR for this purpose, then future MARs should consider the capabilities of multilateral agencies on the ground across a range of countries, capabilities and project types.