Why in the News?

The central government recently signed a USD 400 million policy-based loan with the Manila-based Asian Development Bank (ADB) to support its urban reform agenda to create high-quality urban infrastructure, improve service delivery, and promote efficient governance systems.

About Asian Development Bank (ADB):

• The Asian Development Bank (ADB) is a regional development bank headquartered in Manila, Philippines.
• It was established in 1966 to promote economic development and cooperation in Asia and the Pacific.
• The ADB's primary goal is to reduce poverty in its member countries.
• The bank provides loans, grants, technical assistance, and policy advice to its member countries.
• It also mobilizes private sector investment through its private sector arm, the Asian Development Bank Private Sector Operations.
• It has 68 member countries, including 49 countries in Asia and the Pacific, and 19 non-regional developed countries.
• The ADB's annual lending volume is around $32 billion.
• 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.

The bank's strategy is focused on four key areas:

• Promoting sustainable growth: The ADB is committed to supporting its member countries in achieving their sustainable development goals by financing infrastructure, clean energy, and climate change mitigation and adaptation projects.
• Tackling poverty and inequality: The ADB is providing financing for education, health, social protection, and other programs that benefit the poor and vulnerable to reduce poverty and inequality in its member countries.
• Strengthening regional cooperation: The ADB is promoting regional cooperation and integration in Asia and the Pacific.
• The bank is supporting its member countries in developing regional infrastructure, trade, and investment projects.
• Responding to crises and disasters: The ADB is helping its member countries prepare for and respond to crises and disasters by providing finances for disaster risk reduction and resilience projects.