How the Multilateral Development Banks are adapting to the needs of

MICs: The views of the clients

Ali Mansoor, Financial Secretary, Mauritius March 2008, Cairo

Instruments broadly OK◦ Analytical and Advisory Assistance (AAA)

◦ Technical Assistance (TA)

◦ Budget Support

◦ Project Financing

◦ Guarantees

◦ Private Sector Support

◦ SME Support

◦ Special Initiatives/Global Public Goods April 22, 2023 2

Use of Country Systems well underway (Procurement and Safeguards)

Cost of Funds reasonable except for special programmes, global public goods & periods of stress/external shocks

Paris Declaration Process and Annual Business Plan

April 22, 2023 3

Knowledge institutions with good sharing of international experience

International comparators e.g. Doing Business to situate challenges

Honest Broker over policy differences and peer review role

April 22, 2023 4

Insufficient administrative budget for AAA, Capacity Building and TA◦ Need a global approach to link lending to Administrative Resources ◦ Link administrative resources to impact e.g. use of Country Performance

& Institutional Assessment (CPIA)?

Stronger Peer Review Role to upgrade quality of work by government staff and consultants

More innovative instruments for infrastructure including PPP and regional projects

Concessional financing for project preparation (expand ADB MIC facility), special programmes, global public goods and exceptional circumstances (e.g. large external shocks)

April 22, 2023 5

Stronger emphasis on competitiveness agenda, integration into the global market; and opening up:

◦ Link to important events and issues such as Economic Partnership Agreements (EPAs), Japan TICAD IV, US Congress Duty Free Quota Free initiative

◦ Mobilise additional and predictable resources under Aid for Trade

Stronger Country Presence including field office Bolder push on POLICY REFORM side of Regional

Integration and link to national development agenda Improve internal coordination and coordination with

development partners (e.g. Annual Business Plan)

April 22, 2023 6

Promote peer learning◦ Twinning of Ministries ◦ Exchange Programmes for staff◦ Multi-Disciplinary Centre of Excellence

Accelerate Progress on Country Systems

Better communication over products and services

April 22, 2023 7

How to produce more of it and how to pay for it?◦ Incentives in public sector dictate against fee for

service◦ Annual membership fee to be rebated against

borrowing◦ Expand ADB MIC grant for project preparation and

pay back through borrowing (but make link global and not with a one to one link)

April 22, 2023 8

Stronger coordination via Annual Business Plan

Feed Annual Business Plan into a Budget Embedded in a Medium Term Expenditure Framework--Role played by Poverty Reduction Strategy Papers (PRSPs) in low income countries

Strengthen Programme Based Budget to focus on outputs and outcomes via monitorable indicators

April 22, 2023 9

Focus on special situations and expand ADB MIC grant approach◦ Response to large external shocks

◦ Global Public Goods Renewable Energy; Sustainable Development/Environmental Protection; Disaster management/prevention; HIV/AIDS; Communicable Diseases especially Malaria

◦ Project Preparation

◦ Capacity Building and Technical Assistance

April 22, 2023 10