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8th ADB Business Opportunities Fair

Overview of Public Sector Management,


Governance & Capacity Development SDCC
Warren Turner, Senior Public Management Specialist
22 March 2017
Contents
1) Why PSM and institutions matter

2) ADB policies, strategies and approaches

3) Operational trends and pipeline

4) General business opportunities


1 Good governance leads
to better development results

Countries with sound


policies and regulations,
an effective public service,
and able to control
corruption have grown
more quickly than others
Weblink: www.adb.org/publications/asian-development-outlook-2013-update-
governance-and-public-service-delivery
Governance performance in
Asia-Pacific gradually improving
4.2

4.0
(a)

3.8 Central and West Asia


East Asia
3.6 South Asia
Southeast Asia
3.4
Pacific
(b)
Asia-Pacific Total
3.2

3.0

2.8
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

ADBs PSM and Institutions Ratings, 20052015


Notes: Indicators range from 1 to 6 with higher values denoting better performance; subregional ratings are the simple average of the
relative country ratings; a) Myanmar was included in 2014, which lowered Southeast Asia average rating; b) Cook Islands was excluded
after 2007, which lowered the Pacific average rating.
But governance in Asia-Pacific
still lags most other regions
Developing Asia Latin America & Carribbean Non-OECD Europe OECD Sub-Saharan Africa

Voice and Accountability


1.50

1.00

0.50 Political Stability and


Control of Corruption Absence of
0.00 Violence/Terrorism

-0.50

-1.00

Rule of Law Government Effectiveness

Regulatory Quality

Worldwide Governance Indicators, 2016 Update


Notes: Scores range from 2.5 to -2.5 with higher values denoting better governance quality; regional score is the simple average of
the country scores.
Governance central to achieving
Sustainable Development Goals (SDGs)

Key Targets:
16.3 Promote rule of law and access to justice
16.4 Reduce illicit financial flows, and recover and return stolen assets
16.5 Reduce all forms of corruption and bribery
16.6 Develop effective, accountable and transparent institutions at all levels
16.7 Ensure responsive, inclusive, participatory and representative decision-making
16.10 Ensure public access to information
17.1 Strengthen domestic resource mobilization, including tax and other revenue
17.6 Enhance access to technology and innovation, and knowledge sharing
17.9 Enhance effective and targeted capacity-building in developing countries

ADBs PSM and Institutional


Support to DMCs
2 ADBs policies, strategies
and approaches
2016
Effective management Paper on ADBs
of economic and social future PSM and
resources4 elements: 2008 institutional
accountability, participation, Strategy approaches
predictability, and 2007
transparency Capacity 2020
2006 Development
Second Governance Framework and
and Anticorruption Action Plan
1998 Action Plan
(GACAP II)
1995 Anticorruption
Governance Policy
Policy

Weblink: www.adb.org/sectors/governance/main
3 PSM operational trends
and pipeline
PSM by Subsector, 20142016 (%)
PSM Operations, 20142019 (in $ bn)
3.50 SOE Social
Reform Protection
12% 13%
Decentral-
3.00 ization 9%
3.00
Economic
Standby Mgt 5%
Public
Public Admin
2.50 Expenditure
9%
2.29 and Fiscal
2.16 Management
52%
2.00
billion, USD

1.67
1.59
1.44
1.44
1.50 PSM by Department, 20142016 (%)

0.96
1.00 SERD CWRD
46% 45%
13% 12% 15% 7% 11% 5% % of Total Sov Ops
0.50 12 23 20 10
14 16 Number PSM Ops

0.00 SARD EARD


2014 2015 2016 2017 2018 2019 4% 3%
PARD
2%
Actuals Estimates

Source: ADB Work Program and Budget Framework (WPBF) 20172019 (for estimates)
PSM operations by subsector
in 2017

Firm Standby Total


Subsector Percent
($m) ($m) ($m)

Public Expenditure and Fiscal Management 1,047 877 1,924 64%

Public Administration 212 230 442 15%

Economic Affairs Management 122 255 377 13%

Reforms of State-Owned Enterprises 2 200 202 7%

Social Protection 55 - 55 2%

Total 1,438 1,562 3,000 100%

Source: ADB Work Program and Budget Framework (WPBF) 20172019


Governance and capacity
development (GCD) support in
operations
GCD in Sovereign Operations, 20142016 ($bn) GCD in Sector Operations, 2014-2016 (%)

16.00
Health

Industry &
14.00
Trade

PSM
12.00

Education
10.00
billion, USD

Water
8.00
Finance
77% 81% 85% % Total Ops
6.00 Transport

4.00 Energy

Agriculture
2.00
ICT
-
2014 2015 2016 0% 20% 40% 60% 80% 100%

Total ADB Operations GCD as % of Total Sector


GCD Operations
4 General business
opportunities
PSM focus areas:

Domestic resource Public expenditure Reform of state- Decentralization &


mobilization & financial owned enterprises subnational
management governance

Cross-cutting areas: GCD work: Investment types:


Private sector development Diagnostics (e.g. program impact Policy-based lending
assessments, governance risk
Public-private partnerships Results-based lending
assessments)
Information and communication Investment projects
Capacity development, incl.
technology Technical assistance
organizational development
Anticorruption
Knowledge products
Contact information:

ADBs Governance Thematic Group


Email: governance@adb.org
Website: www.adb.org/sectors/governance/main

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@adb_governance

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