But decentralization alone cannot answer all the questions. The ADB should also be actively engaged in dialogue with development partners, and it should diversify its operations in order to raise the poverty reduction effect. Moreover, the ADB should strengthen its support for regional development activities beyond national boundaries. All these 5Ds, when effectively interrelated, will enable the ADB to meet the developmental needs and to alleviate poverty in its countries of operations. The Development Committee's Task Force on the MDBs recognized the importance of healthy competition among MDBs in its report in 1996.
Competitive pluralism offers choice and innovation.
Having said that, overlap and duplication should be avoided by aid coordination. Aid coordination is truly important when the ADB extends its operations by pursuing the 5D Reform which includes decentralization and diversification. If the burden from different policies and procedures wastes finite resources of borrowing countries, donors need to seek solutions expeditiously by converging policies and procedures. In such a case, the ADB should not cling to its status quo. Rather, it should take the lead in coordinating donors for the sake of client countries.