Manila, The Asian Development Fund (ADF) has effectively targeted small island developing states, nations grappling with conflict, and offered timely crisis interventions. However, with increased pressures from climate change, geopolitical strains, and health challenges, there’s an urgent need to channel more resources into climate adaptation and gender initiatives, according to a recent evaluation.

According to a news release by the Asian Development Bank, the ADF, the concessional arm that offers grants to the bank’s most disadvantaged member nations, has noted that governments tend to underallocate resources to key themes like climate resilience and the transformative gender agenda.

With external factors putting a strain on the economic capacities of these developing nations, the ADF’s support becomes even more pivotal in bolstering their recuperation strategies and long-term development objectives. The report emphasizes the importance of directing more efforts into designing, executing, appraising, and learning from investments that address the ADF’s central thematic goals, especially enhancing resilience against climate challenges and fostering better gender outcomes.

“While the ADB has adeptly utilized the concessional funds and effectively catered to the most vulnerable nations facing potential debt issues, there’s still room to magnify the ADF’s influence,” commented IED Director General Emmanuel Jimenez. He pointed out potential strategies such as refining the monitoring systems to better gauge ADF results and considering a reassessment of policy-based grant limits.

The evaluation delved into the operations of ADF 12 and the initial two years of ADF 13. The analysis indicates a consistent overall performance during 2011–2016 and 2017–2022. However, there’s been a noted decline in results among small island developing states and countries experiencing fragile circumstances or conflicts. The IED conducts a performance review of ADF activities every four years to offer insights and suggestions to augment its developmental efficiency and guide future fund replenishment strategies.

Nassreena Baddiri, the evaluation team leader, stated, “Even though there were some challenges during the pandemic, the ADF’s thematic approach was deemed effective by Developing Member Countries (DMCs), especially for projects centered around disaster risk reduction, gender equality, and regional cooperation and integration.” Baddiri also mentioned the possible inadequacy of resources dedicated to disaster and climate change adaptations in the thematic funds. There’s a similar need for supplementary resources to champion the Sustainable Development Goal 5 gender agenda, given the lack of parallel funding streams.

The analysis underscored the continued significance of technical assistance in concessionary aid nations, especially in conflict-affected areas and small island states, as a crucial mechanism to fortify capabilities in essential sectors.