The Asian Development Bank (ADB) is a regional development bank that provides loans, grants and technical help to countries in Asia and the Pacific to reduce poverty and support growth. Here is how it works.
History
ADB was set up in 1966 and is headquartered in Manila, the capital of the Philippines. It started with 31 members and now has 69 members, of which 49 are from the Asia Pacific region.
Who owns ADB
ADB is owned by its member countries, who buy shares in the bank. Voting power is linked to shareholding. Japan and the United States are the largest shareholders, each with a little over 15 percent of shares. China and India are among the next largest. By tradition, ADB’s President has been from Japan.
How it is run
- **Board of Governors:** one governor from each member, usually the finance minister, which meets once a year
- **Board of Directors:** handles day to day policy and approves loans
- **President:** heads the bank and chairs the Board of Directors
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What ADB does
ADB raises money by issuing bonds in global markets and uses it to lend to member countries. It funds:
- Roads, railways, ports and urban transport
- Power and renewable energy
- Water supply and sanitation
- Agriculture and rural development
- Health, education and skills
- Climate change adaptation and disaster resilience
Poorer countries can get concessional loans and grants, partly through the Asian Development Fund.
ADB and India
India is a founding member of ADB. India began borrowing from ADB in 1986 and is now one of the bank’s largest borrowers. ADB has funded many projects in India, including national and state highways, metro rail systems, power transmission, urban water supply and skill training. In recent years, it has also supported climate and clean energy projects.
India’s Finance Minister is India’s Governor on the ADB Board of Governors, and ADB has a resident mission in New Delhi.
ADB and other banks
ADB often co finances projects with the World Bank, the Asian Infrastructure Investment Bank and other lenders.
Bottom line
The Asian Development Bank is a key source of development finance in Asia. India, as a founding member and major borrower, has used ADB funds for roads, power, cities and more.
Source / स्रोत: Asian Development Bank, Department of Economic Affairs
