Define Asian Development Bank Definition

Asian Development Bank Definition

What Is the Asian Development Bank and What Does It Do?

The principal objective of the Asian Development Bank is to promote prosperity and collaboration among Asia-Pacific countries. The Asian Development Bank (ADB) was established in 1966 and is headquartered in Manila, Philippines. It aids members and partners by providing loans, technical assistance, grants, and equity investments to promote social and economic development.

The ADB is in charge of significant projects in the region and often raises funding through international bond markets. The ADB also depends on member contributions, retained earnings from lending, and loan repayments to keep the institution afloat.

TAKEAWAYS IMPORTANT

• The principal goal of the Asian Development Bank (ADB) is to foster economic growth and cooperation in the Asia-Pacific region.

• The Asia-Pacific region is home to the bulk of the ADB's members.

• To promote development, the ADB provides grants, loans, technical support, and equity investments to its developing member nations, the private sector, and public-private partnerships.

The Workings of the Asian Development Bank

To promote development, the Asian Development Bank provides grants, loans, technical support, and equity investments to its developing member nations, the private sector, and public-private partnerships. The ADB supports policy debates and provides advice services on a regular basis. They also use co-financing activities to provide support while tapping official, commercial, and export finance sources.

Members and associate members of the United Nations Economic Commission for Asia and the Far East are eligible to join the ADB. Other regional and non-regional developed countries that are members of the United Nations or any of its specialised agencies are also eligible.

Initiatives Launched Recently

Since early 2020, the ADB has committed more than $17.5 billion to assist its developing member nations in dealing with the effects of the 2020 crisis and meeting immunisation demands, as well as securing an additional $12.5 billion in co-financing from partners. The ADB is subsidising vaccine procurement, transportation, and distribution through a $9 billion Asia Pacific Vaccine Access Facility, or APVAX, announced in December 2020. 

Members of the ADB

ADB has grown from 31 members when it was founded in 1966 to 68 members now, with 49 from Asia and the Pacific and 19 from others. As of July 2021, membership includes:

The Asian Development Bank's Organization

The Asian Development Bank Charter vests all of the institution's powers in the Board of Governors, who in turn delegate part of these responsibilities to the Board of Directors. Once a year, during ADB's Annual Meeting, the Board of Governors meets formally. 4 The Board of Governors, which consists of one person from each member, is the ADB's top policy-making body.

The United States and Japan are the Asian Development Bank's two largest shareholders. Although Asia-Pacific countries make up the majority of the Bank's membership, industrialised nations are also well-represented. In their efforts, regional development banks normally collaborate with the International Monetary Fund (IMF) and the World Bank.

IMPORTANT : The United States and Japan are the Asian Development Bank's two largest shareholders.