Asian Development Bank (ADB)

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Overview:

Recently, India signed a $400 million policy-based loan agreement with the Asian Development Bank (ADB) to create high-quality urban infrastructure, improve service delivery, and promote efficient governance systems.

About Asian Development Bank (ADB)

  • It is a multilateral development bank established on 19th December 1966.
  • Mission: To foster economic growth and cooperation among countries in the Asia-Pacific Region.
  • Functions:
    • It assists members and partners by providing loans, technical assistance, grants, and equity investments to promote social and economic development.
    • It also provides financing to certain private sector projects as well as public-private partnerships.
    • It regularly facilitates policy dialogues and provides advisory services.
  • Members: It encompasses 68 members—of which 49 are from within Asia and the Pacific and 19 outside.
  • It is run by a board of governors, which represents the member countries of the ADB. 
  • It is modelled closely on the World Bank and has a similar weighted voting system where votes are distributed in proportion to members' capital subscriptions.
  • As of 2022, ADB's five largest shareholders are Japan and the United States (each with 15.6% of total shares), the People's Republic of China (6.4%), India (6.3%), and Australia (5.8%).
  • Source of Funding: It relies on member contributions, retained earnings from lending, and the repayment of loans for the funding of the organization.
  • Headquarters: Manila, Philippines.

Q1) What is the World Bank?

The World Bank is an international financial institution established with the primary goal of reducing poverty by providing financial and technical assistance to developing countries. It was founded in 1944 and is headquartered in Washington, D.C., USA.

Source: India, ADB sign $400-million loan pact to create urban infra