Asian Development Bank – Members, Functions, ADB UPSC
By BYJU'S Exam Prep
Updated on: September 20th, 2023
Asian Development Bank(ADB) is a regional development bank, established in December 1966. It is headquartered in Manila, Philippines. Asian Development Bank aims to promote social and economic development in Asia and the Pacific. India is one of the founding members of the ADB. At present, Asian Development Bank has 68 members, 49 are from within Asia and the Pacific and 19 are from outside.
Asian Development Bank has consistently pursued its mission to alleviate poverty and promote inclusive and environmentally sustainable development across Asia and the Pacific. Through its diverse range of projects and programs, the ADB continues to contribute significantly to the region’s social and economic progress. In this article, we have covered Asian Development Bank members, functions exploring its history, roles, and key initiatives
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What is Asian Development Bank (ADB)?
The Asian Development Bank (ADB) envisions a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty in the region. Asian Development Bank releases an annual report called Asian Development Outlook that summarizes its operations, budget, and other materials for review by the public. Asian Development Bank is an official United Nations Observer.
Asian Development Bank UPSC Notes
ADB assists its members, and partners, by providing loans, technical assistance, grants, and equity investments to promote social and economic development. Asian Development Bank maximizes the development impact of its assistance by facilitating policy dialogues, providing advisory services, and mobilizing financial resources through co-financing operations that tap official, commercial, and export credit sources.
Asian Development Bank [Latest News]
Asian Development Bank has approved a 1.5 billion dollar loan to India to help fund its fight against the coronavirus pandemic.
- The loan has been provided under ADB’s Covid-19 Active Response and Expenditure Support (CARES) Program.
- The CARES Program is funded through the Covid-19 Pandemic Response Option (CPRO) under ADB’s Countercyclical Support Facility.
- Asian Development Bank (ADB) has listed its 10-year masala bonds worth ₹ 850 crores on the global debt listing platform of India INX (BSE-owned exchange).
- Asian Development Bank and the Government of India signed a $300 million loan as additional financing to scale up the improvement of rural connectivity to help boost the economic development in rural areas in the state of Maharashtra.
- The Government of India and the Asian Development Bank (ADB) signed a $112 million loan to develop water supply infrastructure and strengthen the capacities of urban local bodies (ULBs) for improved service delivery in four towns in the state of Jharkhand.
Asian Development Bank Members
From 31 members at its establishment in 1966, at present Asian Development Bank, has 68 members. India is one of the founding members of the Asian Development Bank. The 68 members of the Asian Development Bank comprise both, the regional members, as well as the non-regional members. ADB’s highest policy-making body is the Board of Governors, which comprises one representative from each member nation – 48 from the Asia-Pacific and 19 from outside the region.
ADB Regional Members
The regional Asian Development Bank members are: Afghanistan, Armenia, Australia, Azerbaijan, Bangladesh, Bhutan, Brunei Darussalam, Cambodia, Cook Islands, Federated States of Micronesia, Fiji, Georgia, Hong Kong, China, India, Indonesia, Japan, Kazakhstan, Kiribati, Kyrgyz Republic, Lao People’s Democratic Republic, Malaysia, Maldives, Marshall Islands, Mongolia, Myanmar, Nauru, Nepal, New Zealand, Niue, Pakistan, Palau, Papua New Guinea, People’s Republic of China, Philippines, Republic of Korea, Samoa, Singapore, Solomon Islands, Sri Lanka, Taipei, China, Tajikistan, Thailand, Timor-Leste, Tonga, Turkmenistan, Tuvalu, Uzbekistan, Vanuatu, and Viet Nam.
ADB Non-regional Members:
The list of non-regional members of Asian Development Bank includes: Austria, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Turkey, United Kingdom, United State.
The Asian Development Bank admits the members of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP, formerly the Economic Commission for Asia and the Far East or ECAFE) and non-regional developed countries. According to the latest data, the top five shareholders of the Asian Development Bank are Japan and the United States (each with 15.6% of total shares), followed by the People’s Republic of China (6.4%), India (6.3%), and Australia (5.8%).
Asian Development Bank President
Masatsugu Asakawa is the President of the Asian Development Bank and the Chairperson of ADB’s Board of Directors. He was elected President by the Asian Development Bank’s Board of Governors. He was elected President by ADB’s Board of Governors and assumed office on 17 January 2020.
Roles and Functions of Asian Development Bank
The Asian Development Bank was modelled closely on the World Bank and has a similar weighted voting system where votes are distributed in proportion to members’ capital subscriptions. The roles and functions of the Asian Development Bank are:
- Reducing poverty in Asia and the Pacific through inclusive growth, environmentally sustainable growth, and regional integration.
- Carry out investments in the form of loans, grants, and information sharing – in infrastructure, health care services, and financial and public administration systems, helping nations prepare for the impact of climate change or better manage their natural resources, as well as other areas.
Asian Development Bank UPSC
Asian Development Bank is a financial institution. Recently, it has been in news due to the loans and financing it provided to India post-Covid. The questions concerning Asian Development Bank are asked both in Prelims and Mains, along with sometimes at the IAS Interview stage also. The UPSC Syllabus explicitly covers all the major financial institutions.
In the Prelims Syllabus, the topic is mainly concerned with the Current Affairs part. For the Mains Syllabus, the Asian Development Bank focuses on the functions, recent developments concerning Asian Development Bank and India, etc. That’s why aspirants need to cover this topic in detail with the help of notes and best UPSC Books.
Asian Development Bank UPSC Questions
Question: When was the Asian Development Bank established? a) 1966 b) 1975 c) 1981 d) 1990
Answer: a) 1966
Question: The headquarters of the Asian Development Bank is located in: a) Manila, Philippines b) Tokyo, Japan c) Beijing, China d) Bangkok, Thailand
Answer: a) Manila, Philippines
Question: What is the primary objective of the Asian Development Bank? a) Poverty reduction and sustainable development in Asia and the Pacific b) Promoting regional military cooperation c) Financing large-scale infrastructure projects worldwide d) Regulating international trade in the Asia-Pacific region
Answer: a) Poverty reduction and sustainable development in Asia and the Pacific
Question: The Asian Development Bank provides financial assistance in the form of: a) Grants b) Loans c) Technical assistance d) All of the above
Answer: d) All of the above
