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LESSONS:

Sixth Development Policy Support Program

sector: Industry and Trade, Public Sector Management | country: Indonesia

1. The program framework has proven successful in enabling the use of a flexible medium term framework that promotes ownership by the government, as was evident in the Development Policy Support Program (DPSP) series. In addition, the medium-term framework allows changing government priorities to be successfully incorporated, as occurred under DPSP-6. The medium-term framework also promotes a continuous dialogue with the government on reform, thereby contributing to government ownership and allowing a program to efficiently respond to new or increased economic risks and shifts in government policy priorities. The continuing policy dialogue also allowed ADB to effectively respond and exit the DPSP series in a timely manner at the conclusion of DPSP-6.

2. Numerical targets such as gross domestic product growth rate and poverty incidence should be used with caution, as a global financial crisis can adversely and unexpectedly affect achievement of these targets, as was the case under Development Policy Support Program – 6.

3. There may be merit in carefully reviewing donor coordination mechanisms to determine if there are more effective ways to coordinate structural and sector programs. If alternative approaches to achieving the same high level of coordination could be formulated, such techniques may allow more resources to be dedicated to each donor’s programs and thereby increase the likelihood they will succeed.

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