09 Nov 2024        11:52:52 am

Economics

Asian Development Bank (ADB)

Tags : Asian Development Bank (ADB)

Topic: Multilateral Organizations

Why in the news?

• The Asian Development Bank (ADB) retained India\'s growth forecast for the current fiscal at 7% and said that the economy is expected to accelerate in the coming quarters on improved farm output, and higher Government spending.
• In its Asian Development Outlook (ADO) update of September, the ADB said exports in the current fiscal will be higher than earlier projected, led by larger services exports. However, merchandise export growth will be relatively muted through the next fiscal.

Source: The Hindu 

About Asian Development Bank (ADB):

• It is a multilateral development bank established in 1966.
• It is the principal international development finance institution for the Asia-Pacific region.
• It envisions a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty in the region.
• Functions:
  • It provides assistance to its developing member countries, the private sector, and public-private partnerships through grants, loans, technical assistance, and equity investments to promote social and economic development.
  • It maximizes the development impact of its assistance by facilitating policy dialogues, providing advisory services, and mobilizing financial resources through cofinancing operations that tap official, commercial, and export credit sources.
• Its headquarters are located in Manila, Philippines.
• Membership:
  • Its membership is open to members and associate members of the United Nations Economic Commission for Asia and the Far East.
  • It\'s also open to other regional countries and non-regional developed countries that are members of the U.N. or of any of its specialized agencies. 
  • From 31 members at its establishment in 1966, ADB has grown to encompass 68 members, of which 49ers are from within Asia and the Pacific and 19 outside.
• Control:
  • ADB is run by a board of governors, which represents the member countries of the ADB. 
  • It was modeled closely on the World Bank and has a similar weighted voting system where votes are distributed in proportion to members\' capital subscriptions.
  • As of 2022, ADB\'s five largest shareholders are Japan and the United States (each with 15.6% of total shares), the People\'s Republic of China (6.4%), India (6.3%), and Australia (5.8%).
• Source of Funding:
  • It raises capital regularly through the international bond markets.
  • It also relies on member contributions, retained earnings from lending, and the repayment of loans for the funding of the organization.

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