Table of Contents
- What Is the Asian Development Bank?
- How the Asian Development Bank Works
- Financing Provided by the Asian Development Bank
- Structure of the Asian Development Bank
- Asian Development Bank Country Relationships
- Who Controls the Asian Development Bank?
- Where Is the Asian Development Bank Headquartered?
- Is India a Member of the Asian Development Bank?
What Is the Asian Development Bank?
Let me tell you about the Asian Development Bank, or ADB. Its main goal is to foster economic growth and cooperation among countries in the Asia-Pacific region. Founded in 1966 and headquartered in Manila, Philippines, the ADB helps its members and partners by offering loans, technical assistance, grants, and equity investments to drive social and economic development.
The ADB has led major projects across the region and secures funding through international bond markets. It also depends on contributions from members, earnings retained from lending, and loan repayments to keep the organization running.
How the Asian Development Bank Works
The ADB delivers assistance to its developing member countries, the private sector, and public-private partnerships via grants, loans, technical assistance, and equity investments aimed at promoting development. It regularly hosts policy dialogues and offers advisory services. Additionally, the ADB uses co-financing from official, commercial, and export credit sources to enhance its support.
Membership is available to members and associate members of the United Nations Economic Commission for Asia and the Far East, as well as other regional countries and non-regional developed countries that belong to the UN or its specialized agencies. Remember, the ADB is one of two key Asian regional development banks, the other being the Chinese-led Asian Infrastructure Investment Bank (AIIB).
Financing Provided by the Asian Development Bank
The ADB offers both private and sovereign financing. For the private sector, it focuses on projects that boost investments in the region, delivering significant development impact and leading to accelerated, sustainable, and inclusive growth. Sovereign financing gives member countries flexibility in pursuing their development objectives.
In 2021, the ADB committed nearly US$13.5 billion to aid developing member countries in tackling COVID-19 impacts and vaccination needs, while mobilizing an additional $12.9 billion in co-financing from partners. Through its $9 billion Asia Pacific Vaccine Access Facility (APVAX), announced in December 2020, the ADB funded vaccine procurement, logistics, and distribution.
By the end of 2021, the total private financing portfolio reached $14.2 billion. For sovereign financing, the portfolio was $104 billion, including 713 loans, 392 grants, 915 technical assistance projects, one guarantee, and one equity investment.
Structure of the Asian Development Bank
According to the ADB's charter, all powers rest with the Board of Governors, which delegates some to the Board of Directors. The Board of Governors, the highest policy-making body, includes one representative from each member and meets annually at the ADB's Annual Meeting.
The United States and Japan are the two largest shareholders. While most members are from the Asia-Pacific, industrialized nations are well-represented too. The ADB typically collaborates with the International Monetary Fund (IMF) and the World Bank in its operations.
Asian Development Bank Country Relationships
When the ADB started in 1966, it had 31 members. Now, as of 2022, it has grown to 68 members: 48 regional and 19 non-regional. The regional members span countries like Afghanistan (joined 1966), Armenia (2005), Australia (1966), and many others up to Viet Nam (1966). Non-regional members include Austria (1966), Belgium (1966), Canada (1966), and extend to the United States (1966).
Who Controls the Asian Development Bank?
The ADB is governed by a board of governors representing its member countries. As of 2022, the five largest shareholders are Japan and the United States (each with 15.6% of shares), the People's Republic of China (6.4%), India (6.3%), and Australia (5.8%).
Where Is the Asian Development Bank Headquartered?
The ADB is headquartered in Manila, Philippines.
Is India a Member of the Asian Development Bank?
Yes, India is a regional member of the ADB, having joined in 1966.
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