ADB sets up trust fund for developing countries

The Asian Development Bank (ADB) has set up a new multidonor trust fund to support participation of developing countries at the next global forum on aid effectiveness.

The fund, to be administered by ADB, will take contributions from bilateral, multilateral and individual sources, including corporations and foundations.

The fund will provide assistance for representatives from developing countries who will attend the forum in Busan, Republic of Korea in November this year.

"The fund will contribute towards ADB efforts to support developing countries to take ownership of the aid effectiveness agenda.

It reflects ADB's continuing commitment to the Paris Declaration on Aid Effectiveness forged back in 2005," said Director General of ADB's Strategy and Policy Department Kazu Sakai.

The Paris Declaration on Aid Effectiveness is an international agreement among donor countries to align and rationalise aid activities to avoid resource duplication and improve development outcomes.

ADB played a key role in the forum that drew up the Paris Declaration, as well as the follow-up High Level Forum Three held in Accra, Ghana in 2008.

ADB is also actively involved in the fourth forum in Busan, which will review whether earlier commitments and targets have been reached, and what steps are needed to ensure aid is having desired development results.

Up to 2,000 participants from over 150 countries are expected in Busan, including ministers, heads of bilateral and multilateral institutions, developing country governments and parliamentarians.