How Does ADB Engage Civil Society Organizations in its Operations?: Findings of an Exploratory Inquiry in South Asia
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How Does ADB Engage Civil Society Organizations in its Operations? - Asian Development Bank
An Exploratory Inquiry into ADB Engagement of Civil Society Organizations: What? Why? How?
This publication illustrates the range of ways in which civil society organizations (CSOs) are currently engaged in Asian Development Bank (ADB) operations in South Asia and to encourage further thinking about the contexts in which further engagement could be pursued. The main focus is on engagement in project implementation, followed by a brief overview of upstream
involvement in planning and assessment of projects and country programs.
Background
An ADB policy on cooperation with nongovernment organizations (NGOs) was adopted in 1998 and remains in effect. The objectives and rationale of the policy are stated in a key paragraph:
An expanded program of cooperation with NGOs in its member countries will be pursued. Such cooperation with NGOs will be undertaken with a view to strengthening the effectiveness, sustainability, and quality of the development services ADB provides. The objective of ADB’s cooperation with NGOs is, where appropriate, to integrate NGO experience, knowledge, and expertise into ADB operations, such that the development efforts ADB supports will more effectively address the issues and priorities reflected in ADB’s development agenda. At the same time, the role of NGOs as increasingly significant actors in development processes is recognized.1
Since the policy was adopted there has been considerable evolution in the involvement of NGOs and community-based organizations (CBOs), along with evolution in ADB strategies. In 1999, ADB identified poverty reduction as its overarching goal, along with a poverty reduction strategy to guide its efforts.2 This reorientation was in part a response to the continuing effects of the 1997 Asian financial crisis, which had reversed progress in poverty reduction in many countries. The strategy promoted a greater ADB focus on sectors and subsectors that directly helped the poor and increased participation of the poor in economic activities. For example, in relation to infrastructure, the strategy emphasized rural roads, rural electrification, and water supply and sanitation. It also emphasized strengthening of rural institutions, access to microfinance, small- and medium-sized enterprises (SMEs), primary health care, and environmental resources management.3 The reorientation increased the proportion of projects that included direct involvement of communities, which also increased the potential and the need for contributions from NGOs and for the involvement of grassroots organizations such as water user associations (WUAs) and farmers’ groups.4
ADB engagement with civil society organizations is not an end in itself but a means to enhance the effectiveness, sustainability, and quality of ADB development efforts
By the middle of 2001–2010, changing conditions in the region, including an unexpectedly rapid economic recovery accompanied by growing income inequality, prompted a review and refocusing of the overall framework. Strategy 2020, approved in 2008, maintained the commitment to poverty reduction as the overarching goal and outlined three strategic agendas to pursue this goal in the changed context: inclusive growth, environmentally sustainable growth, and regional integration. Strategy 2020 aimed to refocus ADB operations toward five core specializations, which were expected to account for 80% of all operations by 2012: infrastructure, environment (including climate change), regional cooperation and integration, financial sector development, and education.5 Infrastructure is by far the most important of these five specializations and accounted for as much as 72% of all ADB financing in 2008–2012 (mostly energy and transport, but also including water and urban services).6
The extent of collaboration with NGOs is influenced by ADB sectoral priorities and approaches
The Strategy 2020 Midterm Review (MTR) reaffirmed the validity of the overall approach of the strategy while proposing some operational refinements to respond to implementation experience and the changing development context. Several of the priorities identified by the MTR may widen the scope for NGO engagement, including a renewed focus on inclusiveness in infrastructure operations (i.e., increasing access to economic opportunities, markets, and social services), increased emphasis on food security and agricultural productivity, and expanded operations in the health and education sectors. The MTR also reiterates a commitment to engage CSOs in ADB operations, particularly in projects with grassroots participatory approaches, but also as participants and advisors in project planning and monitoring and in major policy reviews.7
The scope for involvement of NGOs is also influenced by the priorities of partner governments
The scope for NGO involvement in ADB operations and the incentives for outreach to such organizations are affected not only by the ADB strategic framework but also the development priorities and sociopolitical context of partner countries. Governments are ADB’s main partners and country programs are jointly formulated every 3–5 years in light of the development concerns and priorities of both partners. All in-country ADB operations are undertaken in collaboration with governments. The countries in South Asia differ considerably on several dimensions, including size, income classification, poverty rates, and major development indicators. The role of NGOs also varies among countries in the region. For example, NGOs in Bangladesh have a prominent socioeconomic role that has evolved over decades, whereas Bhutan has very few NGOs and these have been established relatively recently. Governments also vary in their readiness to recognize expertise and experience that NGOs can bring to policy development and project implementation or to see them as reliable contractors in program implementation.8
A Note on Terminology
ADB’s 1998 policy used the term nongovernment organizations
and emphasized that the organizations of most concern to ADB were development NGOs, specifically:
… private organizations entirely or largely independent of government, not created for financial or material gain, and addressing concerns such as social and humanitarian issues of development, individual and community welfare and well-being, disadvantage, and poverty, as well as environmental and natural resources protection, management, and