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Support the Implementation of the Poverty Reduction Program II

sector: Education, Finance, Health, Public Sector Management | country: Viet Nam, Socialist Republic of

SIPRP II is a practical example of harmonization and alignment among development partners, as per the Rome and Paris Declarations. Through SIPRP II, ADB participated in the PRSC operations for the second time, and was among a growing number of financing partners. The lessons learned from ADB’s participation in PRSC operations in Viet Nam are detailed in the project completion report (PCR) of the preceding loan (SIPRP I),18 as grouped into four categories: (i) harmonization, (ii) alignment, (iii) ADB-specific, and (iv) beyond PRSC operations. In addition to the already identified lessons in that PCR, this PCR highlights the evolution of ADB’s involvement in the PRSC process and operations in Viet Nam.

Lessons from Validation

Socialist Republic of Viet Nam: Support the Implementation of the Poverty Reduction Program II

The Independent Evaluation Department (IED) agrees with the project completion report’s (PCR) identification of lessons concerning ADB participation in the Poverty Reduction Support Credit (PRSC) operations, including additional lessons relating to the need (i) to identify opportunities for greater ADB involvement (e.g., thru the provision of technical assistance (TA) by ADB specialists) to achieve maximum leverage; and (ii) for ADB to engage in analytical work beyond the scope of the PRSC framework to push for reforms in difficult areas such as banking and state-owned enterprises (SOEs).

To enhance the relevance of program design and formulation, performance targets for components and/or subcomponents of a program need to be clearly stated and assessed. For example, a change in the financing of health services alone does not guarantee a sustainable improvement in health indicators, since performance in the health sector is determined by a host of other factors related to equity, quality, and sustainability. These are basic concerns of national and local health sector management and, ultimately, of modern governance.

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