Asian Development Bank

Asian Development Bank
  • Context: Asian Development Bank (ADB) president Masato Kanda has announced a five-year initiative to transform urban infrastructure across India, with an estimated investment of $10 billion. 

  • Important Pointers: 

  • Establishment: ADB was established on 19th December 1966 as a multilateral development bank. 

  • Objective: It aims to foster a prosperous, inclusive, resilient, and sustainable Asia-Pacific region. 

  • Mission: ADB focuses on eradicating extreme poverty and promoting sustainable development in Asia and the Pacific. 

  • Functions: It provides grants, loans, technical assistance, and equity investments to promote economic and social development. 

  • Development Support: ADB supports policy dialogue, advisory services, and cofinancing with public and private entities. 

  • Headquarters: The ADB is headquartered in Manila, Philippines. 

  • Membership: ADB has 68 members — 49 from Asia-Pacific and 19 from outside the region. 

  • Eligibility for Membership: Open to UNESCAP members and UN member states or those of its specialized agencies. 

  • Governance Structure: ADB is managed by a Board of Governors representing member nations. 

  • Voting Rights: Uses a weighted voting system similar to the World Bank, based on capital contributions. 

  • Top Shareholders (2022): Japan and the U.S. (15.6% each), China (6.4%), India (6.3%), and Australia (5.8%). 

  • Funding Sources: ADB raises funds through international bond markets and member contributions. 

  • Additional Resources: Also funded by loan repayments and retained earnings.