The ADB is poised to launch a $1.5 million small-grants fund for NGOs that are involved in HIV/Aids prevention. The move comes amid criticism that the Bank's new communication policy for NGOs, which came into effect this month, is not aimed at the people most affected by ADB-funded projects.
"For the first time we are setting up a sector-specific fund for small-to-medium grants," says Bart Edes, head of the ADB's NGO centre. "NGOs reach marginalized communities, which are particularly endangered by HIV/Aids." The money for the fund comes from the Swedish government and will be divided into grants between $2,000 and $50,000.
Asia is one of the worst HIV/Aids affected regions in the world. Last year 1.2 million people were newly infected by the virus. In total 8.2 million people live with HIV in Asia and the Pacific. The problem is getting worse in India and China in particular.
ADB president Haruhiko Kuroda endorses the strategy of embracing NGOs as partners in development. "I think that the constructive relation with NGOs and civil society has become an important element of our operations and activities in the field," he said in an interview with Emerging Markets yesterday.
But the essential step towards poverty reduction is regional integration and the ADB's focus on infrastructure. "Our efforts to improve basic infrastructure are necessary to reduce poverty and to raise income standards," Kuroda added.
The ADB is seeking to develop a long-term small-grants strategy. This follows the distribution of $1 million in grants as a pilot project last year. "Small grants are one more step forward [in our cooperation with NGOs]," said Edes, "A $5,000 grant for a small initiative in Kyrgyzstan can have a big positive impact on hundreds of lives."
But NGOs sent a strong-worded letter to the Bank's board of directors two weeks ago, accusing the ADB of favouring business partners over affected communities. The ADB's new policy for disclosing information about its projects "specifically mentions that the strategy does not directly target the public in developing member countries and aims to instead strengthen partnerships with those who have 'business links to the ADB'", say the letter.
The document is signed by over 30 NGOs from 17 countries. The NGOs argue that people who will experience the positive and negative results from ADB-funded projects are the ones most likely to receive the least information about the process. "We strongly urge the ADB to recognize affected communities as one of the primary target audience of its public communications policy," adds the letter.
"NGOs have concerns about corruption, involuntary resettlement, community participation and are worried about accountability," says Edes. "They have a watchdog role and a very loud voice." Although the ADB tries to mitigate the negative effect its projects have on some communities, often its impact is limited, said Edes. That's because the projects are owned by the host government, not the Bank itself. These governments are ADB shareholders.
Around 70 NGO representatives are expected to attend the ADB annual meeting. The specially designated NGO centre offers computer access and meeting space to civil society organizations. A discussion with senior ADB personnel, where NGOs will voice their questions and criticisms is scheduled for Tuesday morning.