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Asian Development Bank (ADB)

23rd December, 2023 International Relations

Asian Development Bank (ADB)

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  • The Government of India and the Asian Development Bank (ADB) signed a $250 million policy-based loan.

Asian Development Bank


  • The Asian Development Bank (ADB) is a regional development bank.


  • It was established on 19 December 1966.


  • It is headquartered at 6 ADB Avenue, Mandaluyong, Metro Manila 1550, Philippines.

Field Offices

  • It has 42 field offices in Asia and the Pacific and representative offices in Washington, Frankfurt, Tokyo and Sydney 

Aim and Mandate

  • The ADB defines itself as a social development organization that is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.
  • This is carried out through investments – in the form of loans, grants, and information sharing – in infrastructure, health care services, financial and public administration systems, helping countries prepare for the impact of climate change or better manage their natural resources, as well as other areas.


  • Starting with 31 members at its establishment, ADB now has 68 members.

Admission of Members

  • The bank admits the members of the UN Economic and Social Commission for Asia and the Pacific (UNESCAP), and non-regional developed countries.


  • The decision-making process at the Asian Development Bank is like that of the World Bank.
  • The number of votes controlled by a member is commensurate with the number of shares held by that member.
  • Thus, Votes are distributed in proportion to members' capital subscriptions.
  • Today, Japan controls the highest number of shares, which is about 15.5% of the ownership of the bank.

Board of Governors

  • The highest policy-making body of the bank is the Board of Governors, composed of one representative from each member state.
  • The Board of Governors, in turn, elect among themselves the twelve members of the Board of Directors and their deputies.
  • Eight of the twelve members come from regional (Asia-Pacific) members while the others come from non-regional members.
  • The Board of Governors also elects the bank's president, who is the chairperson of the board of directors and manages ADB.


  • The president has a term of office lasting five years, and may be re-elected.
  • Traditionally, and because Japan is one of the largest shareholders of the bank, the president has always been Japanese.

Areas of Focus

  • The bank focuses on the key areas of development that are aligned with the World Bank’s sustainable development goals (SDGs). These key areas are:
    • Education
    • Health
    • Transport
    • Energy
    • Finance Sector
    • Climate Change
  • The ADB aims to provide for sustainable and inclusive economic growth by financing projects in areas like education and health, while also helping improve the capital markets and business infrastructure in target countries.
  • There are other more specialized areas as well, such as Public-Private Partnerships (PPPs), Information Technology, Regional Cooperation and Integration, etc., which serve as secondary capacity-building programs.




Q. Consider the following statements:

1.Asian Development Bank admits the members of the UN Economic and Social Commission for Asia and the Pacific.

2.China controls the highest number of shares of ADB, which is about 15.5% of the ownership of the bank.

3.The president of ADB has a term of office lasting five years and may be re-elected.

Which of the above statements is/are incorrect?

A) 2 and 3 only

B) 2 only

C) 1 and 3 only

D) All

Answer: B) 2 only