For the Philippines, the creation of the Asian Development Bank is specially significant. The bank also maintains 31 field offices around the world[5] to promote social and economic development in Asia. The President is Chairperson of the Board of Directors and under the Board's direction conducts the business of ADB. (ESCAP, United Nations Publication March 2007, "The first parliament of Asia" pp. It creates prosperity that can be shared throughout society and benefit the poorest and most vulnerable people. Home About ADB Organization Transparency Operational Priorities When Watanabe was recommended, the two streams proposing a new bankfrom ECAFE and Japancame together. The choice of the Philippines as the permanent site of the bank enhanced the national prestige. Most notably, he served as Chief Advisor to ADB President Kimimasa Tarumizu between 1989 and 1992, during which time he spearheaded the creation of a new office focused on strategic planning. The Asian Development Bank is an important topic for both the Prelims and Mains. ADB's operations in 2017, including grants and cofinancing, totaled $28.9 billion. The Japanese and the. Masahiro Kawai, dean of the Asian Development Bank Institute, a Tokyo-based think tank founded by the ADB, said . [6] From 31 members at its establishment, ADB now has 68 members. [4] The Government of Japan nominated Asakawa as a candidate for position of president ADB in September 2019. In this conversation with international broadcaster Zeinab Badawi, ADB President Masatsugu Asakawa shares his thoughts on the pandemic situation, including how he envisages the recovery of the Asia and the Pacific region. He also noted that we are comprehensively reviewing options to further optimize ADBs balance sheet, and that we are engaging closely with the ADB Board on this matter. The following table are amounts for 20 largest countries by subscribed capital and voting power at the Asian Development Bank as of December 2020. Established in 1966, it is owned by 68 members49 from the region. ADB also responded to a multitude of natural disasters in the region, committing more than $850 million for recovery in areas of India, Indonesia, Maldives, and Sri Lanka which were impacted by the 2004 Indian Ocean earthquake and tsunami. Masatsugu Asakawa is the President of the Asian Development Bank (ADB) and the Chairperson of ADBs Board of Directors. The main role of the Asian Development Bank is to support the projects of its member countries to make an economic impact, processed through public and private sector operations, and advisory services. Private Sector Lending This priority was introduced into the ADB's activities at the insistence of the Reagan Administration. The ADB has been accused by civil society of ignoring warnings leading up the crisis and also contributing to it by pushing loan conditions that many say unfairly pressure governments to deregulate and privatize agriculture, leading to problems such as the rice supply shortage in Southeast Asia.[60]. It assists its members and partners by providing loans, technical assistance, grants, and equity investments to promote social and economic development. Follow us on Facebook, Twitter, Instagram, and LinkedIn. Hethanked ADBs partners for their hard work in 2020 and called for support to ensure a green, resilient, and inclusive recovery. Finance Minister Nirmala Sitharaman on Tuesday met Asian Development Bank (ADB) President Masatsugu Asakawa, and acknowledged the swift response and support provided by the institution to all its developing member countries, including India during the Covid-19 pandemic. List of Presidents of Asian Development Bank: (1966-2022) Name: Tenure period: Country: Takeshi Watanabe: 1966-1972 : Japan: Shiro Inoue: 1972-1976: Japan: Taroichi Yoshida: 1976-1981: Japan: Masao Fujioka: 1981-1989: Japan: Traditionally, and because Japan is one of the largest shareholders of the bank, the president has always been Japanese. ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. ADB President Masatsugu Asakawa on 18 February delivered akeynote messageduring ESCAP's High-Level Dialogue themed, Shaping the Future of Regional Cooperation in Asia and the Pacific.. Takehiko Nakao is the President of the Asian Development Bank (ADB) and the Chairperson of ADB's Board of Directors. And I am glad that the non-regional members of the ADB, representing the developed West, are also taking part in this undertaking, ready to share with Asia the experience and the capacities that are the sources of their own development. The Asian Development Bank (ADB) was founded on December 19, 1966, as a regional development bank under the leadership of Japan. In addition, $1 billion in loans and grants was provided to the victims of the October 2005 earthquake in Pakistan. ADB was conceived in the early 1960s as a financial institution that would be Asian in character and foster economic growth and cooperation in one of the poorest regions in the world. According to the latest data, the top five shareholders of the Asian Development Bank are Japan and the United States (each with 15.6% of total shares), followed by the Peoples Republic of China (6.4%), India (6.3%), and Australia (5.8%). Official Gazette of the Republic of the Philippines, 63(4), 791-795. [39] According to Jason Rush, Principal Communication Specialist, the Bank communicates with many other multilateral organizations. Asia with more than half the world population and a steady trend of population growth is at the very center of the world crisis. Excellencies and distinguished colleagues, on behalf of the Asian Development Bank, I am pleased to join the V20 ministerial dialogue. Watanabe, Takeshi. 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. The opening of the ADB proves that the forces working for cooperation and fraternity between nations should never be underestimated. He served as visiting professor at the Graduate School of Economic Science, Saitama University in Tokyo from 2006 to 2009,[2] and at the Graduate School of Arts and Sciences, University of Tokyo from 2012 to 2015. In the case of the Philippines, alone, we have projected our need for foreign investments at more than P3.5 billion over the next three years of a four-year program period. The Asian Development Bank's primary mission is to foster growth and cooperation among countries in the Asia . As intensive work took place during 1966 to prepare for the opening of the new bank in Manila, high on the agenda was choice of president. ADB focused on improving roads and providing electricity. Considering that the tensions in Asia remain the gravest menace to world peace, the opening of this great bank directed to the deepest causes of such tensionsmass poverty, ignorance and disease, becomes all the more encouraging and reassuring for mankind. William R. Thomson, the former Vice President at the Asian Development Bank (ADB), will join Global Bank as Senior Advisor to the President, Ron Nechemia, and as a member of the Global Bank. Carry out investments in the form of loans, grants, and information sharing in infrastructure, health care services, and financial and public administration systems, helping nations prepare for the impact of climate change or better manage their natural resources, as well as other areas. Most recently, he served as Finance Deputy for the G20 meetings under the Japanese presidency, playing a pivotal role for the success of the G20 Osaka Summit as well as the G20 Finance Ministers and Central Bank Governors meeting in Fukuoka. The early 2000s saw a dramatic expansion of private sector finance. [58][59], The bank has been criticized over its role and relevance in the food crisis. [21], In 2009, ADB's Board of Governors agreed to triple ADB's capital base from $55 billion to $165 billion, giving it much-needed resources to respond to the global economic crisis. It was seen as a long-standing priority of the Japanese government as a process by which national economies become more regionally connected. The group met regularly in 1963, examining various scenarios for setting up a new institution and drew on Watanabe's experiences with the World Bank. But all of them are committed," Asian Infrastructure Investment Bank (AIIB) President Jin Liqun told CNN's Becky Anderson in an interview Tuesday at UN climate summit COP27. Jin Liqun has been elected to a second term as President of the Asian Infrastructure Investment Bank (AIIB) by the Bank's Board of Governors. Asakawa has also worked in various positions in other international agencies. Panelists in this event addressed how economies in Asia and the Pacific can achieve an energy transition that meets rapidly rising demand. The recognition of this necessity is an act of maturity and wisdom. Asian Development Bank UPSC I have no doubt in my mind that these problems will be solved in no time. At the start, it had 31 members but it has grown to 68 members out of which 49 are within Asia and the Pacific. 20152019: Vice Minister for International Affairs with responsibilities for all international policies of the Japanese Ministry of Finance including G20/IMF issues, foreign exchange rate policy, 20022004: Co-Chair for Board for Co-operation with Non-OECD Economies, 20022004: Co-Chair for Forum on Harmful Tax Practices. 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. In the absence of any other candidates, Watanabe was elected first President of the Asian Development Bank at its Inaugural Meeting on 24 November 1966. 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. India is one of the founding members of the Asian Development Bank. The per capita loans from the World Bank on a regional basis are $2.80 to Asia, $3.04 to Africa and $4.20 to Europe. [4] The Government of Japan nominated Asakawa as a candidate for position of president ADB in September 2019. Asian Development Bank is an official United Nations Observer. None can doubt its relevance to the mighty stirring towards a new life of progress and dignity in this oldest of continents. A brief summary of Masatsugu Asakawa's career in the Ministry of Finance in Japan is as follows: On 2 December 2019, it was announced that Asakawa had been unanimously elected by Board of Governors of Asian Development Bank (ADB) as the 10th president of the Bank. Asian Development Bank maximizes the development impact of its assistance by facilitating policy dialogues, providing advisory services, and mobilizing financial resources through co-financing operations that tap official, commercial, and export credit sources. The ADB's Private Sector Department (PSOD) can and does offer a broader range of financings beyond commercial loans. We are giving the world the first concrete manifestation of regional economic cooperation in Asia. 6 ADB Avenue, Mandaluyong City 1550, Metro Manila, Philippines. [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. 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. In August 2021, he was reelected for a 5-year term starting on 24 November 2021. Because it will be mainly managed by Asians, and staffed by Asian experts, the ADB would be to orient itself to the peculiar needs and requirements of the Asian countries. But I believe that in the long run the most lasting effect of this bank would be moral, in the sense that it would help spark in all member countries a new spirit of changeof being able to alter their own environments to make them serve the aims of a better and fuller life in dignity and freedom. The UPSC Syllabus explicitly covers all the major financial institutions. The Board of Directors performs its duties full time at the ADB headquarters in Manila, Philippines. [43], Since the ADB's early days, critics have charged that the two major donors, Japan and the United States, have had extensive influence over lending, policy and staffing decisions. Authorization Method & Scope Be updated with the ADB President's activities on Takehiko Nakao's Flickr page. The Board of Governors, in turn, elect among themselves the twelve members of the board of directors and their deputies. He succeeded Takehiko Nakao on 17 January 2020,[12] who succeeded Haruhiko Kuroda in 2013. Asian Development Bank is a financial institution. I am aware that the Bank will, at this initial stage of its existence, have to face and solve some difficult problems, such as the formulation of policies concerning loans, investment, guarantees and other related problems, not to mention the problems of administration and appointing the right people to the right positions and getting them from as many member countries as possible. [23], The ADB offers "hard" loans on commercial terms primarily to middle income countries in Asia and "soft" loans with lower interest rates to poorer countries in the region. The ADB is committed to achieving prosperous and sustainable Asia and the Pacific. Established in 1966, it is owned by 68 members49 from the region. To pool together our resources for development is undoubtedly a great act of maturity and wisdom. Looking ahead, the race between agricultural output and population is assuming formidable dimensions. This is not only because most Asian countries lack the capital and the means of development. The regular five-year election for the position of ADB president was held as scheduled in mid-2021. The Asian Development Bank (ADB) is a regional development bank established on 19 December 1966,[4] which is headquartered in the Ortigas Center located in the city of Mandaluyong, Metro Manila, Philippines. The headquarter of the Asian Development Bank is in Manila, Philippines. However, that effort was never a true priority until the administration of President Tadeo Chino who in turn brought in a seasoned American banker Robert Bestani. In this article, we will be covering the Asian Development Bank UPSC notes that include, members, functions, of ABD and voting rights, and the latest news regarding the Asian Development Bank that could be important for the UPSC Exam. At the G20 Finance Ministers and a Central Bank Governors (FMCBG) meeting on February 24-25 2923, President Masatsugu Asakawa made one of the lead interventions in the session focusing on international financial architecture, sustainable finance and infrastructure. Asian Development Bank (ADB) has listed its 10-year masala bonds worth 850 crores on the global debt listing platform of India INX (BSE-owned exchange). In parallel, the concept was formally proposed at a trade conference organized by the Economic Commission for Asia and the Far East (ECAFE) in 1963 by a young Thai economist, Paul Sithi-Amnuai. To download the Asian Development Bank UPSC Notes PDF, click here. Top representatives from the World Bank have said that the World Bank will continue to support Sri Lanka's development reforms program. 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 nations prepare for the impact of climate change or better manage their natural resources, as well as other areas. [42] ADB does not disclose information that jeopardizes personal privacy, safety and security, certain financial and commercial information, as well as other exceptions. : The President, Asian Development Bank, Mr. Takehiko Nakao calls on the Prime Minister, Shri Narendra Modi, in New Delhi on February 05, 2015.jpg Licensing[edit] This file is a copyrighted work of the Government of India, licensed under the Government Open Data License - India (GODL). ADB President Masatsugu Asakawa reiterated the banks commitment to strengthening its partnership with Armenia in a virtual meeting with Deputy Prime Minister of Armenia Mher Grigoryan. According to the latest data, the top five shareholders of the Asian Development Bank are Japan and the United States (each with 15.6% of total shares), followed by the Peoples Republic of China (6.4%), India (6.3%), and Australia (5.8%). [8] ADB is an official United Nations Observer. 1977 (reprinted 2010). [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. The battle against climate change will be won or lost in . In 1982, ADB opened its first field office, in Bangladesh, and later in the decade, it expanded its work with non-government organizations (NGOs).[18]. ASIAN DEVELOPMENT BANK (ADB) President Masatsugu Asakawa has been reelected to head the multilateral bank for the next five years and vowed to help the Asia and the Paci fi c region bounce back from the pandemic.. Mr. Asakawa will start his second term on Nov. 24 after a unanimous vote from the ADB Board of Governors. Masatsugu Asakawa is the President of the Asian Development Bank (ADB) and the Chairperson of ADB's Board of Directors. Because of this, the Asian countries must turn to each other and to the developed countries of the West for the additional capital they need for their development. President Asakawa also expressed his strong support for the India's G20 presidencys focus on financing for sustainable cities, noting that the Asia and Pacific region will be home to 1 billion additional urban residents by 2050. Along with this, one needs to practice the UPSC Previous Year Questions. The inauguration of the ADB should boost the morale of all who believe in world peace and brotherhood. In 2014, $9.2 billionor nearly halfof ADB's $22.9 billion in operations were financed by other organizations. ADB releases an annual report that summarizes its operations, budget and other materials for review by the public. The Asian Development Bank admits the members of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP, formerly the Economic Commission for Asia and the Far East or ECAFE) and non-regional developed countries. They also discussed topics of common interest including climate finance, food security, gender, safeguards, and ADB capital adequacy. He was also formerly the vice minister for international affairs in the Ministry of Finance in Japan. Learn more about the Philippine government, its structure, how government works and the people behind it. In this respect, the World Bank has agreed to provide nearly US$ 1.5 billion to Sri Lanka for the next two years. Despite an initial mixed reaction, support for the establishment of a new bank soon grew. of Our pride must be tempered, however, with the awareness that our participation, and the honor and recognition accorded our country carries with it certain responsibilities. I have great hopes that the bank will be a most powerful influence in stimulating economic and social development in this region. He was first elected to the position on May 28, 2015 by the Bank's Board of Governors at its Annual Meetings held in Abidjan, Cte d'Ivoire. Traditionally, and because Japan is one of the largest shareholders of the bank, the president has always been Japanese. There will be pressure on member governments to scrutinize more closely and rigorously their own development projects to qualify for assistance, and therefore to raise the level of their own planning and management competence. 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. Mr. Asakawas professional experience extends beyond the realms of the Japanese government. The bank admits the members of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP, formerly the Economic Commission for Asia and the Far East or ECAFE) and non-regional developed countries. In 2017, ADB lent $19.1 billion of which $3.2 billion went to private enterprises, as part of its "nonsovereign" operations. Its membership, covering 19 countries within the ECAFE region and 12-non-regional ones, in fact constitutes the biggest difference from other similar organizations. [55], Oxfam Australia has criticized the Asian Development Bank for insensitivity to local communities. He was elected President by ADBs Board of Governors and assumed office on 17 January 2020. But the most important efforts in this direction must come, not from outside the region but from within. In the UPSC Prelims Syllabus, the topic is mainly concerned with the Current Affairs part, along with the members and all. [61], ADB has 68 members (as of 23 March 2019): 49 members from the Asian and Pacific Region, 19 members from Other Regions. We know the ADB could rise today only because the ground had been well prepared for it during the past 18 years of the life of the ECAFE. [40] ADB has raised Rs 5 billion or around Rs 500 crores from its issuance of 5-year offshore Indian rupee (INR) linked bonds. Today, most of our countries, irrespective of our stages of development and political beliefs, are signatories to covenants and conventions under the United Nations which bind us to accord to workers the freedom of organization and collective bargaining and the protection of various labor laws. ADB partners with other development organizations on some projects to increase the amount of funding available. 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. Masatsugu Asakawa is the President of the Asian Development Bank and the Chairperson of ADB's Board of Directors. He joined ADB on 12 December 2018. . Masatsugu Asakawa is the President of the Asian Development Bank (ADB) and the Chairperson of ADBs Board of Directors. Two of the USState Departments 2021 Anticorruption Champions ProTenge.KZ Founder Jamilya Maricheva and Anti-Corruption Organization of Thailand Executive Committee Member Torplus Yomnak and former Undersecretary General for UN Internal Oversight Services Heidi Mendoza shared their experiences and insights at a session onBuilding Trust, Igniting Integrity: Sustaining relationships in rebuilding Asia and the Pacific. Watanabe later wrote in his personal history of ADB: "I felt as if the child I had so carefully reared had been taken away to a distant country." The interest and participation in this new institution of countries outside the ECAFE region is an indubitable proof of the vision and statemanship of leading countries outside this continent. The Asian Development Bank (ADB) envisions a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty in the region. Memoir of the President of the Asian Development Bank 2013-2020 (Asian Development Bank, 2022) In April 2013, just five months after Xi Jinping took office as general secretary of the Chinese Communist Party, Takehiko Nakao was appointed president of the Asian Development Bank (ADB). When the world suffered its first oil price shock, ADB shifted more of its assistance to support energy projects, especially those promoting the development of domestic energy sources in member countries. And it is in this sense that the Asian Development Bank in the end enters the confluence of patriotic ideas associated with the great humanitarian heroes of Asia. The mobilization of outside capital for development of Asian economy makes the Bank a unique institution. Speaking at the International Anticorruption Day celebration on 9 December 2022 President Masatsugu Asakawa reminded ADB personnel that in upholding the highest ethical standards, we are trustworthy, transformational, and client-centric. Asian Development Bank President Masatsugu Asakawa is the President of the Asian Development Bank and the Chairperson of ADB's Board of Directors. Download ADB notes PDF for civil services exam. [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. Speech More than 50 financing partnership facilities, trust funds, and other funds totalling several billion each year are administered by ADB and put toward projects that promote social and economic development in Asia and the Pacific. ADB encourages websites and blogs to link to its web pages. He was elected President by ADB's Board of Governors and assumed office on 17 January 2020. To cover the topic in detail, one needs to know each of the following details mentioned in the article. Between 1999 and 2000 he served as head of the Technical Assistance Management Unit in the Fiscal Affairs Department of the International Monetary Fund. We know, however, the proximate causes of the success of this great idea of the ADB. The policy calls for accountability and transparency in operations and the timely response to requests for information and documents. Although he initially declined, pressure came from other countries and Watanabe agreed. Progress is not merely a matter of advice and encouragement or external aid. Asian Development Bank is a regional development bank, established in December 1966. ADB joined with key partners in Indonesia to sign a memorandum of understanding to jointly explore the early retirement of the first coal-fired power plant owned by an independent power producer under ADBs Energy Transition Mechanism. Activities News Speeches Videos Profile It is a recognition of the stability of our political structure, the soundness of our social and economic institutions and the ability of our people. President Masatsugu Asakawa on 1 March 2022 met with Canadas Minister of International Development and ADB Governor Harjit S. Sajjan and Member of Parliament, Mississauga-Streetsville, Rechie Valdez in ADB headquarters. 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. (They are Afghanistan, Australia, Cambodia, Ceylon, Nationalist China, India, Iran, Japan, Korea, Laos, Malaysia, Nepal, New Zealand, Pakistan, The Philippines, Singapore, South Vietnam, Thailand and West Samoa. The Board of Governors did well in entrusting the management of the bank to Mr. Takeshi Watanabe. For the UPSC Mains Syllabus, the Asian Development Bank focuses on the functions, recent developments concerning Asian Development Bank and India, etc.