Learning Curves

IED

GreaterMekongSubregion: MaturingandMovingForward

February2009

Havingachievedameasureofsuccess,ADBmustnowleadtheGMSprogramtomovetothe nextlevelofmaturitywhereitsmemberstakeonmoreresponsibilities. FurtheraddingvaluetotheGMSprogrammustbedonegraduallyinconsultationwith membercountries,takingintoaccounttheirdifferingcapacitiesandaspirations,and providingsupportwherenecessarytobuildthenationalcapacitiesneededtoenhancethe sustainabilityofregionalbenefits.

Background TheGreaterMekongSubregion(GMS)program,an activitybasedsubregionaleconomiccooperation program,beganin1992underthesponsorshipofthe AsianDevelopmentBank(ADB).Itcoverssix countriesCambodia,LaoPeoplesDemocratic Republic,Myanmar,Thailand,VietNam,andYunnan ProvinceandGuangxiZhuangAutonomousRegionof thePeoplesRepublicofChina.ADBassumedtherole oftheGMSSecretariataswellasfacilitator,financier, honestbroker,andtechnicaladviser.Animpact evaluationstudyoftheGMSprogrambythe IndependentEvaluationDepartmentin1999found overallprogressinthefirst7yearsofoperation satisfactory.Onlyathirdofthestudylessonshavebeen adoptedtodate. Since1992,ADBhashelpednurturetheGMS program.Betterawarenessoftheregionalcooperation benefitsandgreatercountryinvolvementatthehighest politicallevelintheGMShasbeenseenrecently. Membercountrieshavebenefitedfromsubregional cooperationintheGMSalthoughtangibleprogressin significantregionaleconomicimpacthasbeenslow. ADBhaseffectivelyplayedacatalyticroleintheGMS, encouragingandsupportingmembercountrieswith technicalexpertisewhileprovidingitsownfunding andleveragingthatofotheragencies.Thisisthefirst regionalcooperationassistanceprogramevaluation1 carriedoutbytheIndependentEvaluationDepartment, anditwillprovidedirectionalinputstowardthenext regionalcooperationstrategyandprogramfortheGMS program.ItevaluatestheADBcofinancedGMS
Independent Evaluation Department Asian Development Bank

operationsduring19922007,usingtheevaluation frameworkdevelopedforcountryassistanceprogram evaluationsinvolvingacombinationoftopdown (strategicandinstitutionalperformance)andbottom upassessments(projectandoperationalperformance).2 SummaryofFindings FortheADBsponsoredGMSprogram,ADB provided40%ofthefunds(about$3.5billionincluding GMSloanandgrantprojectsandtechnicalassistance), whileanother35%camefrommembercountriesand 25%morefromotherdevelopmentpartners. TheoverallassessmentratingfortheGMSprogram issuccessful.Ithasfaredwellinitsearlyphaseof development.Itsstrategicfocusonconnectivityis alignedwithADBcorporatestrategiesoninfrastructure sector.Theactivity,ratherthanrulesdriven cooperation,hasworkedwellinthisfirststageof development,buildingtrustamongpartnersand allowingflexibilityinunderstatingsubgroupactivities asneeded.ADBperformancehasbeensubstantial,with roomforimprovement.Theresultsofthetopdown assessmentaresummarizedinTable1.Theresultsof thebottomupassessmentinsixGMSsectorsare summarizedinTable2.Lessonslearnedfrom subregionalexperienceincludetheimportanceof(i)an integratedapproachinADBinvolvement,(ii)a balancedprogram,(iii)developingtoolstoassess effectiveness,and(iv)improvingtheinvestment climateforprivatesector.

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Table1:ResultsofTopDownEvaluation Criterion OverallRating StrategicAssessment Substantial InstitutionalAssessment Substantial ValueAddition Substantial ADBPerformance Substantial AdministrationandInternalCoordination Modest CoordinationwithOtherAgencies High FinancialMobilization High CapacityBuildingandTechnicalSupport Modest PortfolioManagement Modest OverallTopDownAssessment Successful
Source:OperationsEvaluationMission.

Recommendations

Table2:ResultsofBottomUpEvaluation Criteria Transport Energy Tourism Relevance HighlyRelevant HighlyRelevant Relevant Effectiveness Effective Effective Effective Efficiency Efficient Efficient Efficient Sustainability Likely Likely Likely Impact Substantial Substantial NotAssessed Overall Successful Successful Successful Criteria Environment Agriculture SocialSectors Relevance Relevant Relevant Relevant Effectiveness Effective LessEffective LessEffective Efficiency Efficient LessEfficient Efficient Sustainability Likely LessLikely LessLikely Impact Modest Modest Successful PartlySuccessful PartlySuccessful Overall
Source:OperationsEvaluationMission.

Havingachievedthislevelofsuccess,ADBshouldnow explorewaysofaddingevenmorevalueby encouragingtheGMSprogramtomovetothenext levelofmaturity,wherethememberscantakeonmore responsibilities.Tothisend,thedifferingcapacitiesof thevariousmembercountriesneedtobestrengthened throughcapacitydevelopment.ForADBtocontinueto addvalue,it(i)shouldpromotefocusingonthe regionalnatureoftheprogram;(ii)giveample supportforconnectivityinthepastbyproviding additionalsupportatthepolicylevel;and(iii)facilitate theformulationofastrategytograduallymakethe GMSinstitutionalstructuremoredependentonthe membercountries.Goingforward,ADBshould developarevisedGMSstrategyforADBsroleover thenext1015years.Thisshouldbringgreaterclarityto operationalizeregionalcooperationinlinewiththe Strategy2020,strengtheningthecapacitiesofGMS countriesandregionalinstitutions,expanding opportunitiesforcofinancing,andmaking coordinationmoreeffective.
Learning Curves available @ www.adb.org/evaluation/

BringgreaterclaritytotranslationofStrategy2020for regionalcooperationandintegration(RCI).Explicit guidanceisneededonwhetherADBshouldfinance projectsinsectorsthatarenotspecificallyidentifiedas coreareasofoperation,evenifsuchsectorsare consideredbytheGMScountriesthemselvesasvery importantinadvancingtheirRCIagenda. TakestockandchartarevisedGMSstrategywitha holisticapproach.Drawingonthedemonstrationeffects ofconnectivitythroughinfrastructuredevelopment, privatesectorparticipationshouldbeencouraged.ADB needstofocusmoreonregionalpublicgoodsand mitigatethenegativeimpactsofconnectivity. DevelopandstrengthenDMCandregionalinstitutions undertherevisedGMSstrategy.Thetimingfor establishingregionalbodiestotakeonresponsibilityfor institutionalarrangementsmayvarybysectorneedsand capacity. Identifyotherdevelopmentpartners,privatesector,and theGMSmembercountriesthatcanbridgethe financinggapthatexistsintheGMSprogram,especially forintegratedmultisectorprojects. StrengthencoordinationbetweenGMSsectorworking groups,betweennationalandsubregionalprojectswithin acountry,betweensectordepartmentsinADB,and betweentheGMSprogramandtheresidentmissions. Emphasizeregionalbenefits.Focusonthesubregional natureofprojects,emphasizingtheadditionalityof regionalbenefitsinthedesignandimplementationof subregionalprojects. ADBshouldraiseawareness,providepolicyadvice, andsupportenforcementtoreducethenegativeimpacts ofRCI. Supporttheimplementationofpolicyandprocedural reforms.Addresskeysoftwareconstraintstoderive greaterregionalbenefitsfromhardwareinplace. Establishbaselineindicators,trackprogress,andcompare costsandbenefitsofinvestments,focusingonafew indicators.

Feedback WhentheseLearningCurveswereprepared,ADB ManagementsResponseandtheChairsSummaryof theDevelopmentEffectivenessCommittee Discussionswerenotavailablefordisclosuretothe public.ThestudywascompletedinDecember2008.

ADB.2008.GreaterMekongSubregion:MaturingandMoving Forward.RegionalCooperationAssistanceProgramEvaluation. Manila.Available:www.adb.org/Documents/CAPES/ REG/CAPREG200873.pdf 2 Theanalysesdonotincludetheoperationsfinancedbyother aidagenciesorbyGMSmembercountries,nordoesitcover anyGMSactivitiesinMyanmar,whereADBhasno operationalactivity.
1

Team Leader: Hemamala Hettige, Tel +63 2 632 4102, hhettige@adb.org