The first independent evaluation of PBOs was undertaken in 2011 and assessed AfDB’s use of PBOs over the period 1999–2009 (footnote 71). The evaluation examined how effectively AfDB had used PBOs to support national development objectives, with a focus on AfDB’s policies and procedures for PBOs. It was based on: (i) a review of the literature and comparative experience with PBOs in other development agencies, (ii) a review of AfDB’s institutional and policy framework, (iii) six country case studies, and (iv) four case studies of other significant operations.
The evaluation concluded that AfDB had made substantial progress in its use of PBOs. In 1999, AfDB was heavily dependent on the IMF and the World Bank for the analysis and design of its engagement in structural and sectoral adjustment operations. As of 2011, AfDB operated as a significant partner in joint donor budget support arrangements, and the record of its engagement, as shown by the country case studies, was largely one of success. AfDB had developed a cadre of staff with strong experience in the design and management of budget support. The establishment of country offices had significantly improved AfDB’s ability to engage in national policy and budget processes and had strengthened its monitoring and supervision of PBOs (even though decentralization progressed far more slowly than planned).
AfDB had strengthened its organizational capacity and structure for the design, appraisal, management, and monitoring of PBOs, although some aspects still required further development. It had proved highly responsive to the international economic and financial instability that affected RMCs during 2008 and 2009. AfDB was able to design and implement operations to meet the urgent financial requirements of its clients and these operations provided a platform from which longer-term structural reforms could be addressed. It also made important contributions to the development of budget support arrangements under the Fragile States Facility; in Liberia, for instance, AfDB played a leading role in moving other development partners toward budget support.
The evaluation found that, while AfDB had succeeded in engaging effectively in joint budget support arrangements and in mobilizing rapid responses for fragile and crisis-affected countries, there were some shortcomings in its policies and practices. Its numerous policies and guidelines were not being consolidated or updated. Project procedures were not being fully documented, and were designed for investment operations rather than specifically tailored to PBOs. There was a lack of clarity about how results should be defined and measured for PBOs, information systems were weak, and audit and fiduciary risk issues needed to be addressed.