Asian Development Bank

Why in news?

• Recently, the 2023 Regional Cooperation and Integration (RCI) Conference was organised by the Asian Development Bank (ADB) at Tbilisi, Georgia where India showcased its PM Gatishakti National Master Plan.

About Asian Development Bank:

• The Asian Development Bank (ADB) is a regional development bank established in 1966 as a result of Conference on Asian Economic Cooperation held by the United Nations Economic Commission for Asia and the Far East.
• It is headquartered in Manila, Philippines.
• ADB is an official United Nations Observer.

Objectives of ADB:

• The ADB defines itself as a social development organization that is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.
• As a multilateral development finance institution, ADB provides Loans, technical assistance and Grants.
• The ADB offers "hard" loans on commercial terms primarily to middle income countries in Asia and "soft" loans with lower interest rates to poorer countries in the region.
• ADB also provides direct financial assistance to private sector companies, for projects that have clear social benefits beyond the financial rate of return.
• ADB maximizes the development impact of its assistance by facilitating policy dialogues, providing advisory services, and mobilizing financial resources through co-financing operations.

Members of ADB:

• ADB is composed of 67 members, 48 of which are from the Asia and Pacific region.
• The bank admits the members of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) and non-regional developed countries (I.e. even non-Asian countries can be members.)
• Japan and United States hold the largest proportion of shares at 15.607%. China holds 6.444%, India holds 6.331% and Australia holds 5.786%.

Where does ADB get its funding?

• ADB raises funds through bond issues on the world's capital markets.
• ADB also rely on members' contributions and retained earnings from lending operations, and the repayment of loans.

PRACTICE QUESTION

The Headquarters of Asian development bank is located in:

(a) Washington

(b) Manila

(c) Shanghai

(d) Hong Kong

Answer