ENGLISH 7_Q4_LESSON 2_ Employing a Variety of Strategies for Effective Interp...
Asian development bank
1. FIGHTING POVERTY IN ASIA AND THE PACIFIC
WHAT IS ADB?
• Abbreviation: ADB (ASIAN DEVELOPMENT BANK)
• Motto: Fighting Poverty in Asia and the Pacific
• Formation: 19 December 1966; 52 years ago
• Type: Multilateral Development Bank
• Legal status: Treaty
• Purpose: Social and Economic Development
• Headquarters: Ortigas Center Mandaluyong, Metro Manila, Philippines
2. Region served: Asia-Pacific
Membership: 68 countries
President: Takehiko Nakao
Main organ: Board of Governors
Staff: 3,092 employees
Website: www.adb.org
Development Objectives: ~ Promotion of pro poor, sustainable economic
growth
~ Supporting social development
~ Facilitating good governance
3. History
A meeting of the Economic Commission for Asia and the Far East(ECAFE) first
ministerial conference for ASIAN ECONOMIC COOPERATION held in Manila on
December 1963.
It consisted of ad hoc working group of experts to further study the idea of
establishing a regional bank.
A consultative committee met from mid 1965 and drafted the charter of the asian
development bank.
Second ministerial conference on Asian Economic Cooperation, held in Manila in
Nov 1965, adopted several resolutions all addressing the issue of establishing
the ADB.
Committee on preparatory arrangements was created and an agreement
establishing the ADB was adopted and opened for signature until 31st Jan 1966.
On 21 Sep 1966, the agreement came into force after 16 governments ratified its
charter.
4. MEMBERSHIP AND OWNERSHIP
From 31 members at its establishment in 1966, ADB has grown to encompass
68 members—of which 49 are from within Asia and the Pacific and 19
outside.
TOTAL 68 SHAREHOLDERS
49 Regional members
19 Nonregional members
Japan and U.S are largest Shareholders
15.5% shares each by Japan and U.S
5. BOARD OF GOVERNORS
Delegates powers to Board of Directors except for:
• Admission of new members
• Change in authorised Capital Stock
• Election of President and Board of Directors
• Amendments to Charter
➡Chair - Hong Nam-Ki
➡Vice Chair - Sri Mulyani Indrawati
➡Vice Chair - Pierra Gramegna
✦ Governor - India - Niramala Sitharaman
✦Alternate governor - India - Atanu Chakraborty
6. Board of Directors
Responsible for the direction of the general operations of the Bank.
Takes decisions concerning policies of the Bank, and loans, guarantees,
investments and technical assistance by the Bank.
Approves borrowings by the Bank.
Clears the financial accounts of the Bank for approval by the Board of
Governors.
Approve the budgets of the Bank.
12 Directors of the ADB Board of Directors are elected by the Board of
Governors.
8 of the 12 are elected from within Asia and the Pacific and four others are
elected from outside the region.The Board of Directors performs its duties
full time at the ADB headquarters in Manila, Philippines.
9. MANAGEMENT
The President heads a management team comprising six Vice-Presidents. The team supervises the work of
ADB's operational, administrative, and knowledge departments.
• PRESIDENT OF ADB & THE CHAIRPERSON OF ABD’S BOARD
OF DIRECTORS
TAKEHIKO NAKAO
• VICE PRESIDENT FOR KNOWLEDGE MANAGEMENT AND
SUSTAINABLE DEVELOPMENT
BAMBANG SUSANTONO
Sustainable Development and Climate Change Department / Economic Research and
Regional Cooperation Department / Department of Communications
• VICE PRESIDENT FOR PRIVATE SECTOR AND PUBLIC -
PRIVATE PARTNERSHIP
DIWAKAR GUPTA
Private Sector Operations Department / Office of Public–Private Partnership
10. • VICE PRESIDENT FOR ADMINISTRATION AND CORPORATE
MANAGEMENT
DEBORAH STOKES
Budget, Personnel, and Management Systems Department / Office of Administrative Services /
Office of the General Counsel / Office of Information Systems and Technology / Office of the
Secretary / Procurement, Portfolio and Financial Management Department
• VICE PRESIDENT FOR FINANCE AND RISK MANAGEMENT
INGRID VAN WEES
Office of Risk Management / Controller’s Department / Treasury Department
• VICE PRESIDENT OPERATIONS 1
SHIXIN CHEN
South Asia Department / Central and West Asia Department
• VICE PRESIDENT OPERATIONS 2
AHMED M. SAEED
East Asia Department / Southeast Asia Department / Pacific Department
11. WHAT IS ADB DOING?
As a multilateral development finance institution, ADB provides:
Loans
Technical assistance
Grants
Provides direct assistance to private enterprises of developing member
countries through equity investments and loans.
ADB maximises the development impact of its assistance by
facilitating policy dialogues,
providing advisory services, and
mobilising financial resources through co financing operations that tap official,
commercial, and export credit sources
12. Lending
TYPES OF LOANS
U.S $ (MILLION) PERCENTAGE
PROJECT LOANS
76,092.4 57
PROGRAM LOANS 27,325.9 20
SECTOR LOANS 16,872.1 13
PRIVATE SECTOR LOANS 3,609.8 3
OTHERS (TA LOANS, SPECIAL
ASSISTANCE)
9,398.8 7
TOTAL 1,33,299.1 100
(TOTAL LENDING AS OF 31 DEC 2007)
15. NEED AND ROLE OF ADB
To understand need of ADB lets take a look on that, what infrastructure Asia
needs and why
‣ Asia and the Pacific economies invest nearly $900 billion a year in
infrastructure, but the region needs much more to keep pace with
rising demand spurred by economic growth.
‣ Surely, Asia has enough infrastructure. Everywhere you look it
seems there are new roads, subways, airports, and power
plants.But that’s only part of the story. More than 400 million people
in the region go without electricity, and as much as 30% of electricity
generated in countries like Nepal and Cambodia is lost in
transmission and distribution.
‣ Many roads are low quality and dangerous for motorists and
pedestrians alike.
16. ‣ Around 300 million Asians still have no access to safe, clean
drinking water, including half the rural populations of Afghanistan,
Kiribati, and Papua New Guinea. Roughly 1.5 billion people lack
basic sanitation facilities such as toilets.
‣ This is where ADB is needed. Asian and Pacific regions are
progressing regions and financial support that too in an affordable
and easiest way matters the most for any developing country. ADB
is thus the organisation which was formed to provide the financial,
technical and advisory support.
‣ The ADB can help the member countries in getting funding for the
investment in the programmes and projects on commercial rates of
interest and longer grace period and / or repayment periods.
18. • Engaged in promoting the economic and social progress of its developing
member countries (DMCs) in the Asian and Pacific region.
ADB is acting as a catalyst in promoting the development of the most populous
& fastest growing region in the world today.
ADB gives special attention to the needs of smaller or less developed
countries.(providing special grants and starting up some international
projects)
Providing loans on a low rate of interest to the member countries for reducing
poverty.
As Asia is the fastest growing region in the world. Like Singapore, Malaysia,
Hong Kong and China are the fastest growing countries of asian region, but
at the same time it's home of many poor countries as well, which needs
assistant in various fields.
The need of this assistance emerged the idea of developing a regional bank
which can work particularly on those things which are much more important to
a country and that’s where ADB gets its entry and helps out the members.