Asian Development Bank (ADB)

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ADB or the Asian Development Bank is an international financial institute operating since 1966. ADB provides financial assistance to its member nations for poverty reduction and improvement in the quality of life. To finance its projects, ADB issues bonds and also leverages the contributions made by participant countries.

 

The organization was started with the following objectives:


ADB or the Asian Development Bank is an international financial institute operating since 1966. ADB provides financial assistance to its member nations for poverty reduction and improvement in the quality of life. To finance its projects, ADB issues bonds and also leverages the contributions made by participant countries.

 

The organization was started with the following objectives:

  • The social and economic development of the Asian and Pacific countries.
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  • To boost cooperative and simultaneous regional growth among member countries.

 

As of early 2007, ADB had 67 members, with 48 regional and 19 non-Asian members. Since Japan has been the largest shareholder, the bank has always been governed by a Japanese President. ADB is headquartered at Metro Manila, Philippines.

 

How ADB Works

The main functions of ADB are:

  • Technical assistance provided to members, so that they can plan and execute development strategies and projects.
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  • Assistance to DMCs (Developing Member Countries) to coordinate policies designed for development.
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  • Equity investments and loans to member nations.
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  • Encouragement to member nations to invest private and public capital for development.

 

Achievements of the Asian Development Bank

Asian and Pacific countries have shown considerable transformation in terms of modernization. Till the end of 2007, 1,106 projects funded by ADB were evaluated. Out of these, 65% were rated as successful and 27% partly successful. Some of the highlights of the Asian Development Bank are:
  • Funding projects led by the Utah State University to bring labor skills to Thailand.
  • ROC Ping Hu Offshore Oil and Gas Development.
  • Technical assistance grant of US$2 million to Bangladesh to overcome the challenges linked to climate change.
  • Trans-Afghanistan Gas Pipeline Feasibility Assessment.
  • Greater Mekong Subregional Program.
  • Loan of $1.2 billion to bail Pakistan out of an impending economic crisis.
  • Contributions towards the development of solar energy in India.
  • Strategic Private Sector Partnerships for Urban Poverty Reduction in the Philippines.
  • Earthquake and Tsunami Emergency Support Project in Indonesia.

Asian Development Bank: Challenges

Poverty is still one of the main challenges faced by ADB. The 2009 global recession has severely impacted ADB’s poverty alleviation goals. The following situations pose major challenges for ADB:
  • Safe water is still not available to 60% of the people in the member countries.
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  • Improved sanitation facilities have still not reached 70% of the people.
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  • Out of every 100 children, 40 die before they reach the age of 15. Infant mortality rate is very high.
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  • Half of the undernourished population of the world lives in Asia.
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  • Rising inflation has adversely impacted growth rates in Asia.
 

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