05 Jun 2023 ASIAN DEVELOPMENT BANK (ADB)
This article covers “Daily Current Affairs” and the topic details “Asian Development bank”. The topic “Asian development bank” has relevance in the Economy section of the UPSC CSE exam.
Relevance:
For Prelims:
Facts about ADB?
For Mains:
GS 3: Economy
Objectives of ADB?
Relevance of ADB for India?
Challenges for ADB?
Why in the news?
ADB launches India strategy for 2023-27; focus on employment creation, green growth
Facts about ADB?
The Asian Development Bank (ADB) is an international financial institution headquartered in Manila, Philippines.
- Location: The ADB’s headquarters is located in Mandaluyong City, Metro Manila, Philippines.
- Formation: The ADB was established on December 19, 1966. It was formed as a regional development bank to promote economic growth and cooperation in Asia and the Pacific.
- Membership: The ADB has 68 member countries, including both developing and developed economies. Its members include countries from Asia, the Pacific region, as well as non-regional countries.
- Governance Structure: The ADB has a governance structure consisting of the Board of Governors and the Board of Directors.
Objectives of ADB?
- Operational Focus: The ADB focuses on a wide range of development areas, including infrastructure development, energy, water supply and sanitation, education, healthcare, agriculture and rural development, finance, and private sector development. It provides financial assistance, technical expertise, and policy advice to support the development efforts of its member countries.
- Partnerships and Collaboration: The ADB collaborates with other international organizations, governments, non-governmental organizations (NGOs), and the private sector to promote sustainable development. It works closely with regional institutions, such as the Association of Southeast Asian Nations (ASEAN), to support regional integration and cooperation.
- Sustainable Development Goals (SDGs): The ADB aligns its work with the United Nations’ Sustainable Development Goals (SDGs). It aims to contribute to the achievement of the SDGs by supporting its member countries in areas such as poverty reduction, gender equality, climate action, sustainable infrastructure, and inclusive economic growth.
- Financial Resources: The ADB raises funds through various channels, including capital contributions from member countries, borrowing from international capital markets, and partnerships with other development institutions. It provides loans, grants, and technical assistance to support projects and programs in its member countries.
Relevance of ADB for India?
- Financial Assistance: ADB provides financial support to India for various development projects, including infrastructure development, energy, water supply, sanitation, education, and healthcare. This assistance helps address India’s developmental challenges and contributes to its economic growth and social progress.
- Technical Expertise and Knowledge Sharing: ADB offers technical expertise and knowledge sharing through research, capacity building, and policy advice. This helps India in improving project design, implementation, and monitoring, as well as adopting best practices and innovative solutions.
- Regional Cooperation and Connectivity: ADB promotes regional cooperation and connectivity in Asia. It supports regional infrastructure projects, such as transport networks and cross-border initiatives, which can enhance trade, economic integration, and cooperation among countries in the region. India benefits from these initiatives by improving connectivity with neighboring countries and enhancing its regional trade relations.
Challenges for ADB?
- Financing Constraints: A challenge for ADB is ensuring sufficient financial resources to meet the growing demands for development projects in member countries. To address this, ADB can explore innovative financing mechanisms, attract private sector investments, and mobilize resources through partnerships with other development institutions.
- Balancing Priorities and Sustainability: ADB needs to balance the priorities of economic development and poverty reduction with the imperative of environmental sustainability. This can be achieved by promoting green and sustainable infrastructure projects, integrating climate change considerations, and encouraging sustainable practices in project implementation.
- Project Implementation and Governance: Efficient project implementation and effective governance are crucial for successful outcomes. ADB can work closely with member countries, including India, to strengthen institutional capacity, enhance project management capabilities, and improve governance frameworks. Capacity building initiatives and knowledge sharing platforms can help address these challenges.
- Regional Cooperation and Geopolitical Dynamics: ADB operates in a region with diverse geopolitical dynamics. It needs to navigate political sensitivities, facilitate dialogue, and promote regional cooperation among member countries. This requires maintaining neutrality, fostering trust, and facilitating dialogue to address regional issues and conflicts.
Source:https://economictimes.indiatimes.com/news/india/adb-launches-india-strategy-for-2023-27-focus-on-employment-creation-green-growth/articleshow/100631433.cms?from=mdr
Q.1 Which of the following statements regarding the Asian Development Bank (ADB) is correct?
A) ADB was established to promote economic growth and cooperation in Asia and the Pacific.
B) ADB has 58 member countries, including only developing economies.
C) ADB’s headquarters is located in Tokyo, Japan.
Select the correct option:
(a) A
(b) B
(c) C
(d) None of the above
Answer: (a)
Q.2 Which of the following is NOT a primary focus area of the Asian Development Bank (ADB)?
A) Infrastructure development
B) Education and healthcare
C) Poverty reduction
D) Defense and military expenditure
Select the correct option:
(a) A
(b) B
(c) C
(d) D
Answer:(d)
Q.3 Discuss the role and significance of the Asian Development Bank (ADB) in India’s development trajectory. Examine the key areas of collaboration between ADB and India, highlighting major projects and initiatives.
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