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International­Relations

Asian Development BankJul 20, 2015

The Asian Development Bank, a multilateral development finance institution whose capital stock is owned by67 member countries, is engaged in promoting the economic and social progress of its developing membercountries (DMCs) in the Asian and Pacific region. During the past 40 years, the Bank has maintained its roleas a catalyst in promoting the development of the most populous and fastest­growing region in the worldtoday. In its operations, the Bank gives special attention to the needs of the smaller or less­developedcountries and priority to regional, subregional, and national projects and programs, which will contribute tothe harmonious economic growth of the region as a whole and promote regional cooperation.

Brief Overview of Main Activities

The Bank’s principal functions are

(i) to make loans and equity investments for the economic and social advancement of DMCs;

(ii) to provide technical assistance for the preparation and execution of development projects and programsand advisory services;

(iii) to promote investment of public and private capital for development purposes;

(iv) to respond to requests for assistance in coordinating development policies and plans of DMCs.

History

The idea of a development bank for Asia and the Pacific was first aired by then Sri Lankan PremierSolomon Bandaranaike in 1959. The idea was formally broached during a meeting of the EconomicCommission for Asia and the Far East (ECAFE) First Ministerial Conference for Asian EconomicCooperation held in Manila on December 1963. The Conference created an Ad­hoc Working Group ofExperts to further study the idea of establishing a regional bank. A Consultative Committee met from mid­1965 and drafted the Charter of the Asian Development Bank. The Second Ministerial Conference on AsianEconomic Cooperation, held in Manila in November 1965, adopted several resolutions all addressing theissue of establishing the ADB. A Conference of Plenipotentiaries on the ADB was held from 2 to 4 December1965. A Committee on Preparatory Arrangements was created and an Agreement Establishing the ADB wasadopted and opened for signature until 31 January 1966. On 22 August 1966, the Agreement came intoforce after 16 governments ratified its charter.

Who owns ADB?

ADB has 67 shareholding members including 48 from the Asia and Pacific region. View a complete list of ourmembers and their joining dates. Membership in ADB is open to:

Members and associate members of the United Nations Economic and Social Commission for Asia and thePacific; and other regional countries and non­regional developed countries that are members of the UnitedNations or of any of its specialized agencies.

Where does ADB get its funding?

ADB raises funds through bond issues on the world's capital markets.It also rely on its members'contributions, retained earnings from our lending operations, and the repayment of loans.

It also provide loans and grants from a number of Special Funds. The largest is the Asian DevelopmentFund, which offers grants and loans at very low interest rates.

Japan holds the largest proportions of shares at 15.67%. The United States holds 15.56%, China holds6.47%, India holds 6.36%, and Australia holds 5.81%.

How is ADB governed?

ADB's highest policy­making body is the Board of Governors, which meets annually and comprises onerepresentative from each member nation – 48 from the Asia­Pacific and 19 from outside the region. View thelist of members.

The Governors elect 12 members of the Board of Directors. The ADB President, assisted by six VicePresidents and a Managing Director General,manages the business of ADB.

ADB to increase India lending by 50 % to $12 b by 2018

Asian Development Bank has proposed to increase lending to India by almost 50% to $12 billion by 2018.This was stated by ADB President Takehiko Nakao recently.

According to ADB India’s growth rate was expected to exceed that of China in this year. India’s projectedgrowth rate of 7.8% for the 2015­16 fiscal was higher than China’s estimated 7.2% in 2015 calendar year.