Asian Development Bank

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Asian Development Bank

Overview

The Asian Development Bank (ADB) is a regional development bank that promotes economic growth, cooperation, and poverty reduction across the Asia-Pacific region. Established in 1966 and headquartered in Manila, Philippines, the ADB provides financing, technical assistance, grants, and equity investments to support sustainable and inclusive development.

Mission and Activities

  • Foster economic growth and cooperation among member countries in the Asia-Pacific region.
  • Provide loans, grants, technical assistance, and equity investments to public and private sectors.
  • Support policy dialogue, advisory services, and co-financing arrangements with official, commercial, and export-credit partners.
  • Finance infrastructure, health, education, climate action, private sector development, and emergency responses (e.g., COVID-19 vaccination and logistics).

How ADB Operates

  • Projects and programs are delivered through sovereign (public) financing for member governments and private-sector financing for development-focused commercial projects and public-private partnerships.
  • ADB leverages co-financing with international partners and mobilizes capital via international bond markets, member contributions, retained earnings, and loan repayments.
  • Membership is open primarily to countries in the region and to non-regional developed countries that are U.N. members or members of specialized U.N. agencies.

Financing Highlights (selected)

  • 2021: Committed nearly US$13.5 billion to help developing members address COVID-19 impacts and vaccine needs; mobilized about $12.9 billion in co-financing.
  • Asia Pacific Vaccine Access Facility (APVAX): $9 billion facility for vaccine procurement, logistics, and distribution.
  • End-2021 portfolios: private financing ~ $14.2 billion; sovereign portfolio ~ $104 billion (loans, grants, technical-assistance projects, guarantees, equity).

Governance and Structure

  • The ADB Charter vests ultimate authority in the Board of Governors, which includes one representative per member and meets annually.
  • The Board of Governors delegates day-to-day decision-making to the Board of Directors and management.
  • Major shareholders include the United States and Japan (each holding the largest shares), followed by China, India, and Australia. Regional development banks typically coordinate with the IMF and World Bank.

Membership and Relationships

  • Membership has expanded since 1966 and includes regional and non-regional members; the majority of members are in the Asia-Pacific region.
  • ADB works closely with bilateral and multilateral partners, private investors, and development agencies to co-finance and implement projects.
  • It is one of two major Asian regional development banks (the other is the China-led Asian Infrastructure Investment Bank, AIIB).

Key Facts

  • Headquarters: Manila, Philippines
  • Founded: 1966
  • Core instruments: loans, grants, technical assistance, equity investments, guarantees
  • Largest shareholders: United States and Japan

Frequently Asked Questions

  • Who controls the ADB?
    The ADB is governed by its member countries through the Board of Governors, with significant influence by the largest shareholders.
  • Where is the ADB headquartered?
    Manila, Philippines.
  • Is India a member of the ADB?
    Yes; India is a regional member.

Conclusion

The ADB plays a central role in financing and supporting development across the Asia-Pacific region through a mix of sovereign and private-sector financing, technical assistance, and partnership-based co-financing. Its governance structure ensures member-country oversight while enabling operational decision-making by a professional board and management team.