Asian Development Bank (ADB)

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Overview:

The Asian Development Bank (ADB) recently approved USD 200 million additional financing for the Rajasthan secondary towns development sector project.

About Asian Development Bank (ADB):

 

  • It is a multilateral development bank established on 19th December 1966.
  • Its primary mission is to "foster economic growth and cooperation" among countries in the Asia-Pacific Region.
  • Functions:
    • ADB 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.
    • The ADB regularly facilitates policy dialogues and provides advisory services.
    • They also use co-financing operations that tap official, commercial, and export credit sources while providing assistance.
  • Headquarters: Manila, Philippines.
  • Members: From 31 members at its establishment in 1966, ADB has grown to encompass 68 members—of which 49 are from within Asia and the Pacific and 19 outside.
  • Control:
    • ADB is run by a board of governors, which represents the member countries of the ADB. 
    • The ADB was 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.

 


Q1) What is the Asian Infrastructure Investment Bank (AIIB)?

AIIB is a multilateral development bank that aims to improve economic and social outcomes in Asia. It is headquartered in Beijing, China. AIIB has 105 members. China is the AIIB’s largest shareholder with a 26.5% voting share. India is the second-largest, with 7.5%, followed by Russia, which has a 5.97% voting share.

SourceADB Provides $200 Mn Extra Funding For India's Ongoing Urban Development Project