ADB president Haruhiko Kuroda yesterday defended the Bank vigorously against changes from NGOs that it "shrugs its shoulders in private" at corruption in borrowing countries, and that a "culture of fear and intimidation" exists within the Bank when it comes to ensuring public accountability in its actions. Kuroda argued that the ADB's accountability and transparency are being improved substantially.
In his first briefing with NGOs at the annual meeting, the new president faced charges that the ADB board has not responded adequately to NGO concerns over corruption. Natali Ablova from the Bureau for Human Rights and the Rule of Law in Kyrgyzstan challenged him to explain why, for example, the ADB continues to lend to Nepal even after other international financial institutions have suspended loans to the "Royal regime" there.
Kuroda argued that corruption is a problem that is "treated very seriously" by the ADB. He added that "I hope our efforts can further reduce the risk of corruption in ADB-financed activities." But he admitted that "I am also concerned at the political and human rights situation n Nepal." The ADB has been "monitoring the situation there carefully," he added.
The ADB president acknowledged that the New Accountability Policy (NAP) introduced last year by the ADB is "new and may not have been fully implemented yet." He defended the policy and argued that it should "help to maximize development impact of ADB projects while mitigating the impact of people." The policy can be revised in the light of experience if that is found necessary, he said.
Defending the Bank's efforts, Paul Speltz, US executive director at the ADB, said, "I appreciate [NGOs'] goodwill, but sometimes they seem to be a little out of date with some of the developments taking place. They've got to give the Bank a little bit of latitude because things are improving."
Kuroda also promised to listen carefully to the view of NGOs on accountability and other issues. This followed complaints by Michael Simon of Oxfam/Community Aid Abroad that the credibility of the policy is "under threat" and that there is a "culture of fear and intimidation" within the ADB when it comes to dealing with accountability issues.
Kuroda described the New Accountability Policy as "unique." It involves a "special project facilitator" who can be called upon at an early stage in a project if there is any apparent violation of development rules. "Also, we a have a compliance review panel which, if requested, will review whether there is non-compliance with rules and regulations." The NAP will provide for people potentially affected [by a project] to request a reorientation of a project that affects people in the field," he said.