Growth Recovery Support Program
sector: Public Sector Management | country: Georgia
Socially responsible budget. Rapid disbursements into a budget that is socially responsible and sound in macroeconomic terms provide an efficient channel for supporting public spending, including social, infrastructure, and countercyclical stimulus.
Lending Modality: The crisis in Georgia, triggered largely by exogenous shocks, has underscored the need for a suitable modality that will enable ADB to provide quick support. While ADB has a program lending policy, there is no special modality for a financial crisis response operation for Asian Development Fund countries. The special program loan in the program lending policy is limited to ordinary capital resources countries (OCR). ADB’s Countercyclical Support Facility (CSF) helped disburse anti-crisis support quickly to OCR eligible countries. In 2008, ADB invoked its Disaster and Emergency Assistance Policy, together with Achieving Development Effectiveness in Weakly Performing Countries, to support Georgia through the Emergency Assistance for Post-Conflict Recovery Project. However, the approach adopted under the Growth Recovery Support Program has demonstrated that ADB can quickly mobilize support for its developing members countries (DMCs). Yet, somewhat protracted internal discussions over the application of the program lending policy slowed down ADB’s response in the absence of clarity on the flexible application of that policy for crisis situations such as the one faced in Georgia.
ADB business procedures. While program preparation was shorter than for typical program grants and loans, streamlined and abbreviated business procedures for processing crisis response programs could allow the response to be more timely.
Monitoring and evaluation framework. The overall success of the program could have been greater had the design and monitoring framework (DMF) been better designed. The impact statement could have been closer to the outcome and assumptions about investor and consumer confidence more realistic. The impact statement could have focused on maintaining sustainable and inclusive public sector spending rather than to restore the Georgian economy to the pre-war trajectory of growth and social development. A more realistic assumption could have been formulated in line with the government’s commitment to give priority to social expenditures. The output targets could have been defined according to existing data and definitions.