Asian Development Bank

IN NEWS:

• Asian Development Bank (ADB) has said India's GDP will contract by 4% for fy21.

ABOUT ADB:

• 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.

PRELIMS QUESTION:

Q. The Headquarters of Asian development bank is located in:

1. Washington DC
2. Manila
3. Shanghai
4. Hong Kong

Answer to Prelims question