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 24 October 20152

 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 24 October 20153

 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 24 October 20154

 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) 24 October 20155

 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) 24 October 20156

 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 24 October 20157

 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) 24 October 20158

 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 24 October 20159

 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 24 October