Asian Development Bank (ADB)

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.


  • 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.


Download Yojna daily current affairs eng med 27th Dec 2023

No Comments

Post A Comment