[6], After its creation in the 1960s, ADB focused much of its assistance on food production and rural development. Be updated with the ADB President's activities on Takehiko Nakao's Flickr page. Eighty percent of ADB's lending is concentrated public sector lending in five operational areas. Between 1989 and 1992 Asakawa was seconded by the Japanese Ministry of Finance to serve as an Executive Assistance to the fifth president of the Asian Development Bank, Kimimasa Tarumizu, in Manila. He was also formerly the vice minister for international affairs in the Ministry of Finance in Japan. [10], The highest policy-making body of the bank is the Board of Governors, composed of one representative from each member state. ADB and its role in the world economy; More details on ADB for UPSC IAS exam. However, the idea received a cool reception from the World Bank itself and the study group became discouraged. Masatsugu Asakawa is the President of the Asian Development Bank (ADB) and the Chairperson of ADBs Board of Directors. The opening of the ADB proves that the forces working for cooperation and fraternity between nations should never be underestimated. Read Biography News 1 of 76 next Videos Asian Development Bank is an official United Nations Observer. He was elected President by ADBs Board of Governors and assumed office on 17 January 2020. It also relies on the contributions of member countries, retained earnings from lending operations, and the repayment of loans. The bank will also help redress the imbalance in foreign exchange prevailing in most Asian countries estimated at from 600 million to one billion dollars. The Board (i) takes decisions concerning policies of the bank, and loans, guarantees, investments and technical assistance by the bank, (ii) approves borrowings by the bank, (iii) clears the financial accounts of the bank for approval by the Board of Governors, and (iv) approve the budgets of the bank. [35], ADB provides direct financial assistance, in the form of debt, equity and mezzanine finance to private sector companies, for projects that have clear social benefits beyond the financial rate of return. The president has a term of office lasting five years, and may be reelected. This document dated May 2008 is provided for the ADB project 39408-013 in Bangladesh. President of the Philippines On the Inauguration of Asian Development Bank [Delivered in Makati, Rizal, December 19, 1966] THE ADB: CORNERSTONE OF A NEW LIFE IN ASIA The Filipino people are proud to share with you on our native soil this historic moment in the life of modern Asia. For the UPSC Mains Syllabus, the Asian Development Bank focuses on the functions, recent developments concerning Asian Development Bank and India, etc. United Nations Environment Programme Finance Initiative. In 2003, the severe acute respiratory syndrome (SARS) epidemic hit the region and ADB responded with programs to help the countries in the region work together to address infectious diseases, including avian influenza and HIV/AIDS. ADB responded to this with loans and grants that encouraged economic growth. Learn more about the Philippine government, its structure, how government works and the people behind it. From then on, the Private Sector Operations Department (PSOD) grew at a very rapid pace, growing from the smallest financing unit of the ADB to the largest in terms of financing volume. ADB focused on improving roads and providing electricity. Asian Development Bank is a regional development bank, established in December 1966. One of the most active sub-sectors of finance is the PSOD's support for trade finance. Furthermore, he was a senior staff at the Fiscal Affairs Department of the IMF (19962000). The dilemma of modern development in Asia is that it must be pursued hand in hand with the welfare of the poorest people. I have no doubt in my mind that these problems will be solved in no time. J. M. Garland (Australia), Ng Kam Poh (Malaysia), P.V.R. In addition, $1 billion in loans and grants was provided to the victims of the October 2005 earthquake in Pakistan. China is the. The major objectives of the Asian Development Bank are to achieve inclusive, prosperous, suitable and resilient Asia and the Pacific while reducing extreme poverty. It is my fond hope that other ECAFE countries such as the Soviet Union will now come into the bank, or at least participate in the development of Asia through the special fund of the bank. The bank also maintains 31 field offices around the world[5] to promote social and economic development in Asia. (UPSC 2022). The list of member countries suggests that the Asian Development Bank is not a mere regional bank that its name might imply. [4] The Government of Japan nominated Asakawa as a candidate for position of president ADB in September 2019. [18], In December 2005, China donated $20 million to the ADB for a regional poverty alleviation fund; China's first such fund set up at an international institution. When Japan recalled president of the Asian Development Bank, Haruhiko Kuroda, to head up its central bank, it seems to have missed an opportunity to promote openness. [18], In 2020, ADB gave a $2 million grant from the Asia Pacific Disaster Response Fund, to support the Armenian government in the fight against the spread of COVID-19 pandemic. See: Rules of Procedure of the Board of Directors of ADB. [18], Early loans went largely to Indonesia, Thailand, Malaysia, South Korea and the Philippines; these nations accounted for 78.48% of the total ADB loans between 1967 and 1972. He was elected President by the Asian Development Bank's Board of Governors. Some of his outstanding achievements in Osaka include the endorsement by the G20 Leaders of the G20 Principles for Quality Infrastructure Investment and the G20 Shared Understanding on the Importance of UHC Financing in Developing Countries. The Asian Development Bank (ADB) is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. As a key player in the concept, Japan hoped that the ADB offices would be in Tokyo. In the early 1990s, ADB moved its offices to Ortigas Center in Pasig City, with the Department of Foreign Affairs (Philippines) taking over its old Pasay premises. Fujioka Masao, the fourth president (198190), adopted an assertive leadership style, launching an ambitious plan to expand the ADB into a high-impact development agency. At the start, it had 31 members but it has grown to 68 members out of which 49 are within Asia and the Pacific. But even with their prophetic insights none of the Asian visionaries could foretell that in a few decades this great regional projectthe Asian Development Bank could already materialize. Implied in this is the renunciation of drastic methods of capital accumulation and formation which served the Western Industrial Revolution so well. The bank employs about 3,000 people, representing 60 of its 68 members. It is headquartered in Manila, Philippines. The ADB was modeled closely on the World Bank, and has a similar weighted voting system where votes are distributed in proportion with members' capital subscriptions. The Asian Development Bank supports the projects in developing member countries that create development, and economic impact, which is delivered through both public and private sector operations, knowledge support, and advisory services. See full account in "Banking the Future of Asia and the Pacific: 50 Years of the Asian Development Bank," July 2017. Real progress can only result from actions within the boundaries of Asia herself, and it is for us Asians to work together for our common good. "[57], There had been criticism that ADB's large scale projects cause social and environmental damage due to lack of oversight. Established in 1966, it is owned by 68 members49 from the region. The current president is Masatsugu Asakawa. [6][7] In the first instance, Asakawa was expected to serve out the remainder of the five-term presidential term which Nakao began in November 2016. Speech [34], ADB obtains its funding by issuing bonds on the world's capital markets. In the same year, the ADB committed a $20 million loan to Electric Networks of Armenia, that will ensure electricity for the citizens during the pandemic, as well as approved $500,000 in regional technical assistance to procure personal protective equipment and other medical supplies.[22]. Mr. Shixin Chen is the Vice-President (Operations 1) of the Asian Development Bank (ADB). 6 ADB Avenue, Mandaluyong City 1550, Metro Manila, Philippines. [4] The Government of Japan nominated Asakawa as a candidate for position of president ADB in September 2019. [41], ADB has an information disclosure policy that presumes all information that is produced by the institution should be disclosed to the public unless there is a specific reason to keep it confidential. Keynote address by Masatsugu Asakawa,President, Asian Development Bank, at the 21st Ministerial Conference of Central Asia Regional Economic Cooperation (CAREC) Program, 24 November 2022, SpeechbyMasatsugu Asakawa,President,ADB, at the Indonesia Energy Transition Mechanism (ETM) Country Platform launch, 14November 2022 inBali, Indonesia, Keynote address byMasatsugu Asakawa,President,Asian Development Bank, at the Business 20 (B20) Summit dialogue forum of the G20, 13 November 2022 inBali, Indonesia, Speech byMasatsugu Asakawa, President, Asian Development Bank,at the 14th IMT-GT Summit, Phnom Penh, Cambodia, 10 November 2022, Address byMasatsugu Asakawa, President, Asian Development Bank, to the Board of Governors Business Session (Part II), at the 55th Annual Meeting, 27 September2022, Opening statement byMasatsugu Asakawa, President, Asian Development Bank, to press conferenceat the 55th Annual Meeting, 27 September2022, Speech by Masatsugu Asakawa, President, Asian Development Bank, at the G20 2022 Ministerial Symposium on Tax and Development, 14 July 2022, Bali, Indonesia, Keynote address by Masatsugu Asakawa, President, Asian Development Bank, at the Sydney Energy Forum, 12 July 2022, Sydney, Australia, Keynote speech byMasatsugu Asakawa, President, Asian Development Bank, at the 2022 Global Meeting of the Emerging Markets Forum, 18 May 2022, Paris, France, Address byMasatsugu Asakawa, President, Asian Development Bank, to the Board of Governors Business Session, at the 55th Annual Meeting, 5 May 2022. The battle against climate change will be won or lost in . ADB announced plans to provide at least $14 billion over 20222025 in a comprehensive program of support to ease a worsening food crisis in Asia and the Pacific, and improve long-term food security. In the first round on 30 November, Tokyo failed to win a majority, so a second ballot was held the next day at noon. ADB has adopted a comprehensive reform road map, featuring a new operating model, to accelerate its transformation and more effectively serve the rapidly changing needs of its developing member countries in Asia and the Pacific. Asian Development Bank is a financial institution. The Asian Development Bank (ADB) was founded on December 19, 1966, as a regional development bank under the leadership of Japan. But the most important efforts in this direction must come, not from outside the region but from within. The headquarter of the Asian Development Bank is in Manila, Philippines. In the UPSC Prelims Syllabus, the topic is mainly concerned with the Current Affairs part, along with the members and all. By the end of 1972, Japan had contributed $173.7 million (22.6% of the total) to the ordinary capital resources and $122.6 million (59.6% of the total) to the special funds. In April 2014, ADB opened an office in Myanmar and resumed making loans and grants to the country. 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. An expert group was convened to study the idea, with Japan invited to contribute to the group. The Governor thanked the President for ADBs continued strong partnership with Mongolia, recognizing ADB as the leading development financier, including ADBs critical support during the COVID-19 pandemic. It was seen as a long-standing priority of the Japanese government as a process by which national economies become more regionally connected. Moreover, Japan received tangible benefits, 41.67% of the total procurements between 1967 and 1976. Recently, it has been in news due to the loans and financing it provided to India post-Covid. Before joining ADB, Mr. Nakao was the Vice Minister of Finance for International Affairs at the Ministry of Finance of Japan. Indeed, whereas the Private Sector Operations Department (PSOD) closed out that year with financings of $2.4 billion, the ADB has significantly dropped below that level in the years since and is clearly not on the path to achieving its stated goal of 50% of financings to the private sector by 2020. World leaders backed the establishment of the first-ever innovative guarantee fund specifically designed to invest in the education of the worlds poorest children and youththe IFFEd. It is headquartered in Manila, Philippines. 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 Peoples Democratic Republic, Malaysia, Maldives, Marshall Islands, Mongolia, Myanmar, Nauru, Nepal, New Zealand, Niue, Pakistan, Palau, Papua New Guinea, Peoples 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.