Asian Development Bank (ADB)

27 Dec 2023 Asian Development Bank (ADB)

Why in the news?

The Government of India and the Asian Development Bank (ADB) have entered into an agreement for a $250 million policy-based loan.

About Asian Development Bank (ADB)

• Establishment:

• • • The Asian Development Bank (ADB) was established on December 19, 1966, as a regional development bank.

• Headquarters and Field Offices:

• • • ADB is headquartered at 6 ADB Avenue, Mandaluyong, Metro Manila 1550, Philippines.
    • It maintains 42 field offices in Asia and the Pacific, with representative offices in Washington, Frankfurt, Tokyo, and Sydney.

• Aim and Mandate:

• • • ADB positions itself as a social development organization committed to poverty reduction in Asia and the Pacific.
    • Its objectives include fostering inclusive economic growth, environmentally sustainable development, and regional integration.
    • These goals are pursued through investments in various sectors, such as infrastructure, healthcare services, financial and public administration systems, climate change preparedness, and natural resource management.

• Membership:

• • • ADB started with 31 members and has now expanded to include 68 members.
    • Membership is open to members of the UN Economic and Social Commission for Asia and the Pacific (UNESCAP) and non-regional developed countries.

• Decision-Making and Votes:

• • ADB’s decision-making process mirrors that of the World Bank.
  • The number of votes held by a member corresponds to the number of shares it owns, distributed in proportion to capital subscriptions.
  • Japan currently controls the highest number of shares, constituting approximately 15.5% of the bank’s ownership.

  Board of Governors:

• Highest Policy-Making Body:

• • • The Board of Governors, consisting of one representative from each member state, serves as the highest policy-making body of the ADB.
    • This board elects the twelve members of the Board of Directors, including their deputies.

• Composition:

• • • Eight of the twelve directors represent regional (Asia-Pacific) members, while the others represent non-regional members.

• Election of President:

• • The Board of Governors is responsible for electing the president, who also serves as the chairperson of the Board of Directors and manages the overall functioning of ADB.

President:

• Term and Re-election:

• • The president holds a five-year term and is eligible for re-election.
  • Traditionally, the president has been Japanese, reflecting Japan’s significant shareholding in the bank.

Areas of Focus:

• Aligned with SDGs:

• • • ADB’s development initiatives align with the World Bank’s Sustainable Development Goals (SDGs).

• Key Areas:

• • • The bank prioritizes key areas, including Education, Health, Transport, Energy, Finance Sector, and Climate Change.

• Sustainable and Inclusive Growth:

• • • ADB aims to foster sustainable and inclusive economic growth by financing projects in education and health.
    • It also contributes to improving capital markets and business infrastructure in target countries.

• Specialized Areas:

• • ADB engages in specialized areas such as Public-Private Partnerships (PPPs), Information Technology, Regional Cooperation and Integration, etc.
  • These serve as secondary capacity-building programs to complement primary focus areas.

Source: https://timesofindia.indiatimes.com/business/india-business/asian-development-bank-injects-250-million-to-boost-indias-industrial-corridors/articleshow/105860657.cms?from=mdr

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