Social Policy of the Asian Development Bank
Investments of the Asian Development Bank must accord with the ADB Charter, which defines as the bank’s purpose “to foster economic growth and co-operation in the region of Asia and the Far East… and to contribute to the acceleration of the process of economic development of the developing member countries in the region, collectively and individually.”
Investment decisions are made in deference to internal strategies for reaching developmental targets, and their implementation is guided by ADB’s Regulations of Ordinary and Special Operations (OCR regulations) as well as by a series of operational policies. Social Policy, in this context, is defined with respect to specific dimensions of ADB work, e.g. governance and anti-corruption. Client obligations to avoid and mitigate social and environmental risks are specified in the ADB’s Safeguard Policy Statement.
The ADB Operation Manual (OM)
The ADB Operations Manual (OM) collects operational policies known as Bank Policies (BPs) that follow from ADB Charter, regulations of the ADF and OCR, as well as other operational policies and strategies adopted by the ADB Board of Directors. The OM also includes Operational Procedures (OPs) that spell out procedural requirements and guidance on policy implementation.
Operation Manual (OM)
| Group | New OM No. | Subject | Date of Issue | |
|---|---|---|---|---|
| A | Country Classification and Country Focus | |||
| 1 | Classification and Graduation of Developing Member Countries | 4 September 2013 | ||
| 2 | Country Partnership Strategy | 1 February 2013 | ||
| 3 | Performance-Based Allocation of Asian Development Fund Resources | 3 October 2014 | ||
| B | Regional and Subregional Cooperation | |||
| 1 | Regional Cooperation and Integration | 30 June 2010 | ||
| C | Sector and Thematic Policies | |||
| 1 | Poverty Reduction | 14 July 2004 | ||
| 2 | Gender and Development | 6 December 2010 | ||
| 3 | Incorporation of Social Dimensions into ADB Operations | 6 December 2010 | ||
| 4 | Governance | 23 December 2010 | ||
| 5 | Anticorruption | 4 October 2010 | ||
| 6 | Enhancing ADB's role in Combating Money Laundering and the Financing of Terrorism | 1 July 2010 | ||
| D | Business Products and Instruments | |||
| 1 | Lending Policies for Sovereign and Sovereign-Guaranteed Borrowers (Ordinary Capital Resources) | 24 February 2014 | ||
| 2 | Lending and Grant Policies (Asian Development Fund) | 6 August 2013 | ||
| 3 | Sector Lending | 29 October 2003 | ||
| 4 | Policy-Based Lending | 1 April 2013 | ||
| 5 | Sector Development Programs | 29 October 2003 | ||
| 6 | Financial Intermediation Loans | 15 December 2003 | ||
| 7 | Disaster and Emergency Assistance | 15 June 2004 | ||
| 8 | Guarantee and Security Arrangements for Loans | 15 December 2003 | ||
| 9 | Credit Enhancement Operations | 18 December 2007 | ||
| 10 | Nonsovereign Operations | 2 January 2013 | ||
| 11 | Processing Sovereign and Sovereign-Guaranteed Loan Proposals | 1 January 2010 | ||
| 12 | Technical Assistance | 13 December 2013 | ||
| 13 | Exposure and Investment Limitations on Nonsovereign Operations | 17 February 2010 | ||
| 14 | Multitranche Financing Facility | 17 February 2015 | ||
| E | Partnerships | |||
| 1 | Financing Partnerships | 3 October 2014 | ||
| 2 | Japan Fund for Poverty Reduction | 1 March 2011 | ||
| 3 | Cooperation Arrangements for Development Partnership | 26 March 2009 | ||
| 4 | Promotion of Cooperation with NGOs | 29 October 2003 | ||
| F | Safeguard Policies | |||
| G | Analyses | |||
| 1 | Economic Analysis of Projects | 15 December 2003 | ||
| 2 | Financial Management, Cost Estimates, Financial Analysis and Financial Performance Indicators | 12 March 2014 | ||
| 3 | Poverty and Social Analysis | under preparation | ||
| H | Financial | |||
| 1 | Financing of Interest and Other Charges During Construction | 18 July 2006 | ||
| 2 | Financing Indirect Foreign Exchange Cost of Projects | 22 October 2008 | ||
| 3 | Cost Sharing and Eligibility of Expenditures for ADB Financing | 3 January 2012 | ||
| 4 | Retroactive Financing | 21 July 2006 | ||
| 5 | Additional Financing | 24 February 2011 | ||
| 6 | Use of Surplus Loan Proceeds | 29 October 2003 | ||
| 7 | Foreign Exchange Risk | 19 December 2008 | ||
| J | Project Administration | |||
| 1 | Project Performance Management System | 28 October 2011 | ||
| 2 | Consultants | 6 August 2013 | ||
| 3 | Procurement | 6 August 2013 | ||
| 4 | Loan Covenants | 29 October 2003 | ||
| 5 | Effectiveness of the Loan Agreement | 29 October 2003 | ||
| 6 | Disbursement | 4 May 2012 | ||
| 7 | Project Accounting, Financial Reporting, and Auditing | 7 June 2012 | ||
| K | Evaluation | |||
| 1 | Independent Evaluation | 1 October 2013 | ||
| L | Other Policies and Operational Procedures | |||
| 1 | ADB Accountability Mechanism | 24 May 2012 | ||
| 2 | Internal Audit | 15 December 2003 | ||
| 3 | Public Communications | 2 April 2012 | ||
| 4 | Retroactive Financing | 21 July 2006 | ||
| 5 | Additional Financing | 24 February 2011 | ||
| 6 | Use of Surplus Loan Proceeds | 29 October 2003 | ||
| 7 | Foreign Exchange Risk | 19 December 2008 | ||
| J | Project Administration | |||
| 1 | Project Performance Management System | 28 October 2011 | ||
| 2 | Consultants | 6 August 2013 | ||
| 3 | Procurement | 6 August 2013 | ||
| 4 | Loan Covenants | 29 October 2003 | ||
| 5 | Effectiveness of the Loan Agreement | 29 October 2003 | ||
| 6 | Disbursement | 4 May 2012 | ||
| 7 | Project Accounting, Financial Reporting, and Auditing | 7 June 2012 | ||
| K | Evaluation | |||
| 1 | Independent Evaluation | 1 October 2013 | ||
| L | Other Policies and Operational Procedures | |||
| 1 | ADB Accountability Mechanism | 24 May 2012 | ||
| 2 | Internal Audit | 15 December 2003 | ||
| 3 | Public Communications | 2 April 2012 | ||
Social Policy
Social policy at the Asian Development Bank can be conceptually divided into two groups:
- safeguard policies, which seek to avoid, minimise, or mitigate adverse impacts of ADB operations ,
- and - - aspirational / developmental policies, which articulate the ABD’s aspirational notion of ‘social development’ and specify how these aims can be realized in practice.
Safeguards Policy
In 2009, the Asian Development Bank adopted its Safeguard Policy Statement (SPS). The SPS defines safeguard principles and outlines implementation and delivery processes for safeguard policy compliance. ref ADB clients are obligated to avoid, where possible, and mitigate, where inevitable, associated social and environmental risks per SPS specification.
Current Safeguard Policy Framework
- Safeguard Policy Statement (Jun 2009) | ADB SPS website
- Operational Manual Section F1 (2013)
The SPS builds upon (and supersedes) three previous safeguard policies: (i) the 2002 Environment Policy, (ii) the 1998 Policy on Indigenous Peoples, and (iii) the 1995 Policy on Involuntary Resettlement. ref.
Previous Safeguard Policies
- Environment Policy (Nov 2002) | PDF
- Policy on Indigenous Peoples (1998) | PDF | NOTES
- Operations Manual Section F3/B 'Indigenous Peoples' (25 September 2006)
- Operations Evaluation Department Evaluation Study: Indigenous Peoples Safeguards (Feb 2007) | PDF
- Involuntary Resettlement Policy (Aug 1995) | PDF | NOTES
In addition to the Safeguard Policy Statement, the ADB has published strategic frameworks for realizing socially-beneficial development, e.g. the Social Protection Operational Plan 2014−2020. ADB also undertakes periodic reviews of its progress toward policy implementation.
Non-Policy Safeguard Frameworks
- Social Protection Strategy (Aug 2001)
- Social Protection Strategy (Jan 2001)
- Social Protection Operational Plan 2014−2020</em> (Dec 2013)
- Special Evaluation Study on ADB’s Social Protection Strategy (7 Nov 2012)
Aspirational / Developmental Policies
While safeguards policies are intended for risk avoidance, mitigation and management, other forms of social policy govern how the ADB invests in development initiatives. These ‘aspirational development policies’ref. set out to better articulate ADB’s notion of ‘social development’ and to address how these aims can be realized in practice.
Development Policies
- Strategy 2020: Working for an Asia and Pacific Free of Poverty (Apr 2008) | print | board paper | brochure
- ADB Results Framework (2008)
- Policy on Gender and Development, 2010
- 2010 Operations Manual Section C2/BP & C2/OP
- 2003 typset version of the 1998 policy | PDF | NOTES
- Implementation Review of the Policy on Gender and Development (Nov 2006)
- Gender and Development Plan of Action Annual Implementation Progress Reports (Nov 2006)
- Interim Progress Report on the Policy on Gender and Development (2002)
Strategy 2020 is among the most recent examples of ADB development policy. Strategy 2020 reaffirms ADB’s vision of an Asia and Pacific free of poverty as well as its mission to help its developing member countries improve their living conditions and quality of life. To achieve these ends, Strategy 2020 prioritizes three complementary development agendas: inclusive economic growth, environmentally sustainable growth, and regional integration. To better ensure that it is achieving the goals of Strategy 2020, ADB also developed a results framework to facilitate progress assessments and evaluation of strategy efficacy.
Earlier development policies of the Asian Development Bank that remain in effect are the 2003 Policy on Gender and Development and the 2001 Social Protection Strategy.
The 2003 Policy on Gender and Development (GAD) seeks to mainstream awareness of gender issues in order to promote gender equality and women’s empowerment across all ADB operations—from country partnership strategies to the design and implementation of gender-inclusive projects and programs. The GAD policy is a stand-alone instrument and regarded by ADB as a necessary component for realizing sustained economic growth, faster poverty -reduction, and inclusive development. The GAD policy’s relevance and approach were confirmed by the 2002 Interim Progress Report on the Policy on GAD and 2006 GAD Policy Implementation Review. Gender issues are also addressed ADB’s long-term strategic framework—Strategy 2020—as one of the five drivers of change. The results framework measures the Bank’s performance with regard to gender issues relative to quantiative targets, which are tracked and reported annually.
The 2001 Social Protection Strategy (SPS) establishes the meaning of ‘social protection’ within ADB operations as a set of policies and programs designed to reduce poverty and vulnerability by promoting efficient labor markets, diminishing people’s exposure to risks, and enhancing their capacity to protect themselves against hazards and interruption/loss of income. Priority interventions under this framework are those supporting social assistance and welfare services, including child protection and micro- and area-based schemes for poverty and vulnerability rediction; social insurance programs to cushion risks associated with unemployment, ill-health, disability, work-related injury and old age; and labor market policies and programs designed to generate employment, improve working conditions.