Asian Development Bank ADB is a regional development bank headquartered in Manila, Philippines. It is aimed at promoting economic and social progress in Asia and the Pacific region. Established in 1966, ADB provides financial assistance, technical expertise, and policy advice to its member countries to support infrastructure development, poverty reduction, and sustainable economic growth. With a focus on reducing poverty and improving living standards, ADB facilitates investments in various sectors. This includes energy, transportation, agriculture, education, and healthcare, fostering inclusive and environmentally sustainable development across its diverse member countries.

Asian Development Bank ADB UPSC is one of the most important topics for UPSC IAS Examination.

In this article on Asian Development Bank ADB UPSC, we shall discuss its genesis, objectives, principles, challenges & importance for India. This will be very useful for aspirants in the UPSC Prelims Exam.

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What is Asian Development Bank ADB?

Source: ADB

• The Asian Development Bank ADB was established in 1966 on 19th December.
• The basic aim of the establishment of this bank was so and sure that the developmental prospects in the Asian region and beyond can be fulfilled with the help of monetary and other financial grants.
• The headquarters of this bank is located in Manila, which is in the Philippines.
• The Bank Maintains 31 field offices around the world to promote social and economic development in Asia.

Background of the Asian Development Bank ADB

• ADB was founded on December 19, 1966, and started its operations in 1967.
• It was created as a response to the pressing development needs of the region and to foster economic cooperation among countries in Asia and the Pacific.
• The initial members of ADB were 31 countries, and the bank's headquarters is located in Manila, Philippines.

Objectives of Asian Development Bank ADB

• To promote sustainable economic growth, reduce poverty, and improve living conditions in the Asia-Pacific region.
• To facilitate regional cooperation and integration among member countries.
• To provide financial resources, technical assistance, and knowledge support to promote development projects and programs.

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Areas of Cooperation of Asian Development Bank ADB

• Infrastructure development, including transportation, energy, and urban development.
• Regional cooperation and integration.
• Environmental sustainability and climate change mitigation.
• Poverty reduction and social development.
• Private sector development.
• Good governance and institutional capacity building.
• Knowledge sharing and capacity development.

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Members of Asian Development Bank ADB

ADB has 68 members, including 49 regional members from Asia and the Pacific and 19 non-regional members from other parts of the world.

• The regional members include countries from Asia and the Pacific region, such as India, China, Japan, South Korea, Australia, and many others.
• The non-regional members include countries from Europe, North America, and other regions.

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Working of Asian Development Bank ADB

• ADB operates through a three-tier structure. It consists of the Board of Governors, the Board of Directors, and the Management.
• The Board of Governors, composed of representatives from member countries, is the highest decision-making body.
• The Board of Directors, comprising representatives from member countries, oversees the bank's operations and approves projects and programs.
• The Management, led by the President, implements the policies and decisions of the Board of Directors.

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Roles and Responsibilities of Asian Development Bank ADB

• Providing financial assistance, including loans, grants, and equity investments, to member countries for development projects and programs.
• Offering technical assistance and policy advice to member countries to support their development goals.
• Promoting regional cooperation and integration through initiatives such as infrastructure connectivity, trade facilitation, and knowledge sharing.
• Supporting capacity building and institutional strengthening in member countries.
• Fostering partnerships with other development institutions, governments, private sector entities, and civil society organizations.

Financing Mechanism of ADB

• ADB finances its operations through a combination of its ordinary capital resources (OCR) and its Asian Development Fund (ADF).
• OCR is primarily funded through member country subscriptions. ADF is supported by contributions from donor countries.
• ADB also mobilizes co-financing from other sources. This includes multilateral development banks, bilateral agencies, and the private sector.

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ADB and India

• India is a founding member of ADB and has been one of the largest borrowers and recipients of ADB assistance.
• ADB has provided financial support to various development projects in India. This includes infrastructure development, energy, water supply, education, and skill development.
• ADB has also collaborated with the Indian government in policy dialogue, technical assistance, and knowledge sharing.

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Key Highlights of the Asian Development Bank ADB for UPSC

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We hope that all your doubts regarding the Asian Development Bank ADB will be cleared after going through this article. You can download the Testbook App now to check out various other topics relevant to the UPSC IAS Exam.

हिंदी भाषा में पढ़ने के लिए यहाँ क्लिक करें : एशियाई विकास बैंक (ADB) क्या है?