Bank’s Strategy in Governance work
The Bank’s vision is to support Good Governance and Accountability in Africa for Inclusive Growth and Socio-Economic Transformation.
Bank’s Governance Strategy
Over the last 12 years, the AfDB has taken significant steps towards strengthening governance interventions as one of its strategic priorities, whilst also recognizing governance as a cross-cutting issue in lending and non-lending operations.
The Good Governance Policy (2000), the Medium Term Strategy (2008-2012), the Middle Income Countries Strategy (2007), and the New Strategy for Enhanced Engagement in Fragile States (2008), provided the overarching framework for AfDB’s strategic direction in governance. In 2008, the Bank adopted the Governance Action Plan (GAP), to deliver on these strategies and to ‘assist in building capable and responsive states by strengthening transparency and accountability in the delivery of public resources, with an emphasis on oversight institutions and accountability systems’.
To deliver the 2008-2012 GAP the Bank deployed a range of instruments including:
- budget support through Program Based Operations (PBOs);
- Institutional Support Projects (ISPs) (mostly through grants); and
- knowledge products, including support to Africa wide initiatives in governance related areas.
In fragile states, funds were disbursed through the Fragile States Facility and through a crisis response instrument which provided fast disbursing loans to mitigate the impact of shocks, e.g. political upheaval or natural disasters.
The Bank has recently approved its ‘Strategy for 2013-2022: At the Center of Africa’s Transformation’ which emphasizes its continued relevance in the governance arena and identifies a number of priorities. These include:
- financial governance reforms to strengthen public financial management at the sub-national level;
- improving domestic resource mobilization;
- service delivery improvement;
- demand side governance; increased engagement in sector governance such as extractive industries, water and forestry,;
- supporting employment creation through strengthening the business environment; and
- deepening development partnerships (including the use of trust funds) for effectiveness and efficiency.
The Bank is preparing its Second Governance Operational Framework and Action Plan (GAP II) which seeks to further enhance the Bank’s work in Governance achieved through GAP I whilst bearing in mind the lessons learnt. Furthermore, given the broad nature of Governance, the Bank will position itself in supporting areas where it has comparative advantage in addressing emerging governance issues and needs of the African continent.
The African Development Bank emphasizes the importance of measuring results in both its lending and non-lending interventions to assess progress and foster greater learning across the continent as a whole.
AfDB has developed a robust Results Measurement Framework which tracks governance outcomes through 18 indicators, covering four broad themes: public financial management, business environment, macroeconomic management, and overall governance capacity. Change is measured year on year from a 2005 baseline.
The Bank also undertakes regular reviews of its governance portfolio. In 2012 it published a special edition of the Development Effectiveness Review (DER) on Governance which presents the results of the Bank’s efforts in the governance arena over the past five years. The results were presented at 4 levels:
- Africa’s overall progress on governance in recent years;
- Bank’s contribution to these results;
- How well the Bank manages its operations in Governance and
- The Bank’s efforts to improve its ability to engage in governance work.
The DER demonstrates that the AfDB has made substantial contribution in RMCs in strengthening public financial governance, increasing domestic revenue collection, improving the business environment, fostering sound macroeconomic management and fostering transparency and accountability. Read more: DER-Governance.
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African Governance Outlook 2012 (680 KB)