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http://www.drishtiias.com/upscexamgsresourcesAsianDevelopmentBank

InternationalRelations
AsianDevelopmentBank
Jul20,2015
TheAsianDevelopmentBank,amultilateraldevelopmentfinanceinstitutionwhosecapitalstockisownedby
67membercountries,isengagedinpromotingtheeconomicandsocialprogressofitsdevelopingmember
countries(DMCs)intheAsianandPacificregion.Duringthepast40years,theBankhasmaintaineditsrole
asacatalystinpromotingthedevelopmentofthemostpopulousandfastestgrowingregionintheworld
today.Initsoperations,theBankgivesspecialattentiontotheneedsofthesmallerorlessdeveloped
countriesandprioritytoregional,subregional,andnationalprojectsandprograms,whichwillcontributeto
theharmoniouseconomicgrowthoftheregionasawholeandpromoteregionalcooperation.
BriefOverviewofMainActivities
TheBanksprincipalfunctionsare
(i)tomakeloansandequityinvestmentsfortheeconomicandsocialadvancementofDMCs
(ii)toprovidetechnicalassistanceforthepreparationandexecutionofdevelopmentprojectsandprograms
andadvisoryservices
(iii)topromoteinvestmentofpublicandprivatecapitalfordevelopmentpurposes
(iv)torespondtorequestsforassistanceincoordinatingdevelopmentpoliciesandplansofDMCs.
History
TheideaofadevelopmentbankforAsiaandthePacificwasfirstairedbythenSriLankanPremier
SolomonBandaranaikein1959.TheideawasformallybroachedduringameetingoftheEconomic
CommissionforAsiaandtheFarEast(ECAFE)FirstMinisterialConferenceforAsianEconomic
CooperationheldinManilaonDecember1963.TheConferencecreatedanAdhocWorkingGroupof
Expertstofurtherstudytheideaofestablishingaregionalbank.AConsultativeCommitteemetfrommid
1965anddraftedtheCharteroftheAsianDevelopmentBank.TheSecondMinisterialConferenceonAsian
EconomicCooperation,heldinManilainNovember1965,adoptedseveralresolutionsalladdressingthe
issueofestablishingtheADB.AConferenceofPlenipotentiariesontheADBwasheldfrom2to4December
1965.ACommitteeonPreparatoryArrangementswascreatedandanAgreementEstablishingtheADBwas
adoptedandopenedforsignatureuntil31January1966.On22August1966,theAgreementcameinto
forceafter16governmentsratifieditscharter.
WhoownsADB?
ADBhas67shareholdingmembersincluding48fromtheAsiaandPacificregion.Viewacompletelistofour
membersandtheirjoiningdates.MembershipinADBisopento:
MembersandassociatemembersoftheUnitedNationsEconomicandSocialCommissionforAsiaandthe
PacificandotherregionalcountriesandnonregionaldevelopedcountriesthataremembersoftheUnited
Nationsorofanyofitsspecializedagencies.
WheredoesADBgetitsfunding?

ADBraisesfundsthroughbondissuesontheworld'scapitalmarkets.Italsorelyonitsmembers'
contributions,retainedearningsfromourlendingoperations,andtherepaymentofloans.
ItalsoprovideloansandgrantsfromanumberofSpecialFunds.ThelargestistheAsianDevelopment
Fund,whichoffersgrantsandloansatverylowinterestrates.
Japanholdsthelargestproportionsofsharesat15.67%.TheUnitedStatesholds15.56%,Chinaholds
6.47%,Indiaholds6.36%,andAustraliaholds5.81%.
HowisADBgoverned?
ADB'shighestpolicymakingbodyistheBoardofGovernors,whichmeetsannuallyandcomprisesone
representativefromeachmembernation48fromtheAsiaPacificand19fromoutsidetheregion.Viewthe
listofmembers.
TheGovernorselect12membersoftheBoardofDirectors.TheADBPresident,assistedbysixVice
PresidentsandaManagingDirectorGeneral,managesthebusinessofADB.
ADBtoincreaseIndialendingby50%to$12bby2018
AsianDevelopmentBankhasproposedtoincreaselendingtoIndiabyalmost50%to$12billionby2018.
ThiswasstatedbyADBPresidentTakehikoNakaorecently.
AccordingtoADBIndiasgrowthratewasexpectedtoexceedthatofChinainthisyear.Indiasprojected
growthrateof7.8%forthe201516fiscalwashigherthanChinasestimated7.2%in2015calendaryear.