Monday, January 9, 2012

Revised Guidelines for Implementing ADB's Second Governance and Anticorruption Action Plan (GACAP II)-

These Guidelines for Implementing ADB’s Second Governance and Anticorruption Action Plan (referred to as ‘the Guidelines’) are intended to provide guidance to the Asian Development Bank (ADB) staff on the implementation of ADB’s Second Governance and Anticorruption Action Plan (GACAP II). The overall aim of GACAP II is to improve ADB’s performance in helping strengthen national governance systems and in reducing vulnerability to corruption in ADB investments.

The Guidelines are principally addressed to ADB country teams. They describe the process for implementing GACAP II, and the requirement in the Country Partnership Strategy (CPS) Guidelines1 that CPSs are informed by risk assessments (RA) and risk management plans (RMP) for national/subnational government systems in which ADB is engaged, and priority sectors for ADB operations. The procedures and formats in these Guidelines are a model; adaptation to fit the specific circumstances of different DMC’s may be required.

GACAP II was approved in July 2006.2 It reflects the findings and conclusions of the Review of the Implementation of ADB’s Governance and Anticorruption Policies3 (referred to as “the Review”) which examined ADB’s strengths and weaknesses in implementing its 1995 Governance Policy4 and 1998 Anticorruption Policy5. The purpose of GACAP II is “ improve ADB’s performance in the implementation of the governance and anticorruption policies in the
sectors and sub-sectors where ADB is active...and... to design and deliver better quality projects and programs...” (GACAP II, paragraph 4).

GACAP II has four key result areas (KRA):
(i) KRA 1: Improve identification and management of governance, institutional, and
corruption risks in CPSs and annual country portfolio review missions (CPRM);
(ii) KRA 2: Strengthen governance and anticorruption components in project and
project design;
(iii) KRA 3: Strengthen program and project administration and portfolio management;
(iv) KRA 4: Improve organizational structure, human resources, and access to

GACAP II identifies three governance themes, viewed as critical to poverty reduction and development effectiveness, as the focus: public financial management (PFM), procurement, and combating corruption. These three themes apply at the national and subnational levels and in ADB priority sectors in DMCs. GACAP II addresses both ADB’s partnerships with DMCs to strengthen country systems, in line with the 1995 Governance Policy, and actions to reduce corruption vulnerability in ADB investments, in line with the 1998 Anticorruption Policy.

Section II outlines the governance risk management framework and the ‘cascading’ RA approach at the country, sector, and project levels. Section III details how to identify governance and corruption risks, and Section IV discusses the management of these risks and criteria for formulating effective RMPs. Section V considers implications of RAs for project design and implementation. Section VI discusses the importance of monitoring the implementation of mitigation measures.

Asian Develoment Bank. Date: December 2011. Type: Guides. ADB administration and governance; Governance and public sector management


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