Asian Development Bank (ADB)

  • Established in 1966
  • HQ : Manila, Philippines
  • It is a multi-lateral lending agency
  • It is modeled on the World Bank
  • It has a similar weighted voting system where votes are distributed based on member’s capital subscriptions.
  • ADB borrows from international capital markets with its capital as guarantee
  • Japan and USA are its major donors.
  • There has been criticism that ADB’s large scale projects cause social and environmental damage due to lack of oversight
  • India has about 6% voting rights (4th highest; Japan highest, USA 2nd highest)
  • It is owned by 67 members 48 from the region including India.
  • It is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.
  • It provides finance to both sovereign countries as well as to the private parties.
  • It provides hard loans to middle-income countries and soft loans to poorer countries