As stated by the ADB, the objective of the regional technical assistance (TA) is to strengthen economic work of the Asian Development Bank (ADB) and ensure that knowledge work systematically informs country operations, thereby improving evidence-based economic policymaking by developing member countries (DMCs) in Central and West Asia. The TA is aligned with ADB's Strategy 2030 Midterm Review's strategic focus areas, specifically private sector development.

The TA is also aligned with the country knowledge plans under the country partnership strategies (CPSs) for DMCs in Central and West Asia. The TA implementation will be closely coordinated with relevant country directors, the Economic Research and Development Impact Department (ERDI), and other departments.

PROJECT RATIONALE AND LINKAGE TO COUNTRY/REGIONAL STRATEGY

Most DMCs in Central and West Asia do not have a high degree of economic complexity, and their growth trajectories are tied closely to commodity exports and/or a narrow production base. This dependence on international demand and prices for their respective specific commodities, combined with weak linkage to the global value chain, increases their susceptibility to periodic exogenous shocks. Within this context, key priorities for these DMCs include sound macroeconomic management, trade and investment policies, and other structural reforms promoting private sector participation, private sector investments, and job creation while combating environment-related challenges. Another crucial priority is to deploy optimal digitalization approaches. While these challenges are complex and multidimensional, considerable fragmentation of knowledge hinders the formulation of effective public policy responses.

In some countries, transition to a market economy is still ongoing. Private sector-led export growth involves varying degrees of uncertainty and complexity, and public institutions often lack adequate capacity to pursue evidence-based policymaking. It is crucial to inform stakeholders of the essential components for knowledge-based policy formulation. Quantitative and qualitative analyses are vital for informed decision-making. By effectively applying evidence from real-world situations, efficient and effective policy solutions can be created to accelerate private sector growth.

Human capital quality and performance are closely linked with public sector organizations' ability, capacity, and performance to generate and avail knowledge and data for effective policy formulation and implementation. Public sector employees play an instrumental role in offering key inputs to policy formulation and ensuring successful implementation. This underscores the need for public officials to continually develop their capacity to address knowledge and/or skills gaps that may develop over time. In the current diverse and rapidly changing environment, policymakers in the public sector must continually learn and acquire new skills, tools, and methodologies to effectively deliver solutions to complex problems.

Even as ADB has been supporting the country knowledge plan, led by the respective ADB resident mission, a holistic, region-wide approach to economic work is needed to mobilize the region's talents and enhance public institutions's capabilities in economic analysis. This can be achieved through prioritized knowledge products, improved data availability and utilization, and targeted capacity development. As part of ADB's solutions shift, there is a stated corporate intent for greater cross-sectoral and thematic collaboration and stronger knowledge flow across regions. Additionally, there is a greater degree to which CPSs, programs, and projects are informed by the corresponding country diagnostics and ADB-wide operational frameworks. To facilitate favorable outcomes of the economic work commissioned in ADB's Central and West Asia Department (CWRD), a convening platform for selected staff working on DMCs in Central and West Asia is needed. This platform would enable outreach to related research institutions and policymakers of nodal government ministries and/or agencies that is currently absent.

ADB Team Leader:

Kenji Takamiya
Email: ktakamiya@adb.org 

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