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ASIAN DEVELOPMENT BANK

(ADB)
Rakesh Reddy E
MBA, Nizam College.
INTRODUCTION
• The Asian Development Bank (ADB) is a regional
development bank established in 1966 to promote
economic and social development in Asian and Pacific
countries through loans and technical assistance.
• Formation: December 4th 1966
• Headquarter: Manila (Philippines).
• President: Haruhiko Kuroda
• Members: 67 member countries.
• Staff : 2500+
BACKGROUND
• ADB was conceived amid the postwar rehabilitation and
reconstruction of the early 1960s.
• The vision was of a financial institution that would be Asian in
character and foster economic growth and cooperation in the
region – then one of the poorest in the world.
• In Dec, 1963 the Economic commission for Asia and far-east
(ECAFE) conference was held in Manila, Philippines.
• ADB was established in Manila on December 4, 1966.
Vision and Mission
• ADB's vision is to create a region, free of
poverty.

• Its mission is to help its developing member


countries reduce poverty and improve the
quality of life of their citizens.
MANAGEMENT
• General direction and operations of ADB rests
with 12 members Board of Directors.
8 directors represent countries from Asia-Pacific.
4 represent rest of member countries.
• Each director serves for a term of two years and
is eligible for re-election.
The president of the bank Haruhiko Kuroda, is
also the chairperson of the board of directors.
MEMBERS

Total members: 67 countries


48 countries from Asia- Pacific.
19 non- regional members
It was initially set-up with 31 members. Now it
has 67 members.
India has been the member of ADB since 1966.
ABOUT ADB
• ADB raises funds through bond issues on the world's
capital markets, while also utilizing its members'
contributions and earnings from lending.
• ADB’s main instruments for helping its developing
member countries are loans, equity investments,
guarantees, grants, and technical assistance (TA).
• ADB's annual project lending amounts to about US$7
billion per year with typical lending per project being in
the $100 million range.
• As of 31 Dec 2008 the cumulative totals were $143.53
billion in loans for 2,147 projects in 41 countries, $4.08
billion for 263 grant projects, and $3.55 billion for 6,599
TA projects.
OBJECTIVES
Promote capital formation in developing
countries.
Poverty Reduction.
Co-ordination of trade among member
countries.
Improvement of living standard in member
countries.
FUNCTIONS
1. It provides financial assistance to
underdeveloped and developing countries.
2. It helps in promotion of trade and commerce
among member countries.
3. It also helps in developing countries in paying
off their foreign debts.
4. It also arranges loans from WB and IMF.
5. It helps in provisional of technical assistance
for the development projects of developing
countries.
ADB & INDIA
• India is a founding member of ADB and its fourth largest
shareholder.
• India is the third largest shareholder among regional
members.
• Shares held 224,010 (6.32%)
• Votes 237,242 (5.35%)
• Ashok K. Lahiri is the Executive Director and
Md. Aminul Islam Bhuiyan is the Alternate
Executive Director representing India on the ADB Board
of Directors.
• Tadashi Kondo is the ADB Country Director for
India.
• ADB has approved 130 loans for India amounting to
$20,586.5 million since 1986.
• Since 1988, ADB has approved 254 technical assistance
(TA) projects amounting to $181.6 million, of which 58
(amounting to $78.4 million) are under implementation.
• As of 31 December 2008, the portfolio included 44
ongoing loans for $8.2 billion with $3.3 billion to
transport, $1.7 billion to urban infrastructure, $1.5
billion to the energy sector, and $1.0 billion to the
financial sector.
• In 2009, the bank endorsed a 2.9-billion-dollar funding
strategy for proposed projects in India.
• The core focus of ADB’s strategy in India is poverty
reduction through infrastructure-led growth.
• The Country Partnership Strategy (CPS) for 2009–2012,
will support the Government of India’s efforts toward
poverty reduction and inclusive growth as emphasized in
the 11th Five-Year Plan.
• The priority sectors during the CPS period will be
energy, transport urban development (including water
supply and sanitation), water resources management,
agribusiness infrastructure, finance, and governance.
Cumulative ADB Lending as of 31 December
2008 to India.
Sector Amount ($ million) %

Agriculture and Natural Resources 93.31 0.45


Energy 6,799.39 33.03
Finance 2,410.00 11.71
Health, Nutrition, and Social Protection 58.64 0.28
Industry and Trade 335.90 1.63
Law, Economic Management,
and Public Policy 950.00 4.61
Multi Sector 2,958.00 14.37
Transport and Communications 6,366.85 30.93
Water Supply, Sanitation 5 614.40 2.98
Total 20,586.50 100.00
THANK YOU