Takehiko Nakao is the President of the Asian Development Bank (ADB) and the Chairperson of ADB's Board of Directors. [6], Watanabe served as the first ADB president to 1972. As I have told the Asian Labor Ministers Conference just ended in Manila, the Asian Nations today are in the position of being required to wage an industrial revolution without exploitation, no nation today is permitted to suspend human rights in deference to an urgent period of economic development. Finance Sector Development The financial system is the lifeline of a country's economy. Speech of President Marcos on the Inauguration of Asian Development Bank. 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%). India is one of the founding members of the Asian Development Bank (ADB). We Asians are, therefore, particularly happy about the keen interest shown by the countries outside the ECAFE region to help foster economic growth and cooperation in the region, of Asia and the Far East and contribute to the acceleration of the process of economic development of the developing countries in the region.. The Board (i) takes decisions concerning policies of the bank, and loans, guarantees, investments and technical assistance by the bank, (ii) approves borrowings by the bank, (iii) clears the financial accounts of the bank for approval by the Board of Governors, and (iv) approve the budgets of the bank. 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. In the same year, the ADB committed a $20 million loan to Electric Networks of Armenia, that will ensure electricity for the citizens during the pandemic, as well as approved $500,000 in regional technical assistance to procure personal protective equipment and other medical supplies.[22]. Cooperation, therefore, is no longer optional, when one thinks in broad terms, but a necessity imposed upon our countries by the common objective of development. Top representatives from the World Bank have said that the World Bank will continue to support Sri Lanka's development reforms program. Hence, with the vast majority of loans going to concessionary (sub-market) loans to the public sector, the ADB is facing considerable financial difficulty and continuous operating losses. 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: Asian Development Bank (ADB) - Read more about the ADB, its president, headquarters, etc. The gradual emergence of Asian economies in the latter part of the decade spurred demand for better infrastructure to support economic growth. In the 1990s, ADB began promoting regional cooperation by helping the countries on the Mekong River to trade and work together. 6 ADB Avenue, Mandaluyong City 1550, Metro Manila, Philippines. The UPSC Syllabus explicitly covers all the major financial institutions. COMMITMENT AGAINST POVERTY, IGNORANCE AND DISEASE. Although he initially declined, pressure came from other countries and Watanabe agreed. We must at last face the truth that there is no choice for our countries except to cooperate. 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. Masahiro Kawai, dean of the Asian Development Bank Institute, a Tokyo-based think tank founded by the ADB, said . As noted earlier, this culminated in the Long Term Strategic Framework (LTSF) which was adopted by the Board in March 2008. The idea came up again late in 1962 when Kaoru Ohashi, an economist from a research institute in Tokyo, visited Takeshi Watanabe, then a private financial consultant in Tokyo, and proposed a study group to form a development bank for the Asian region. The Board of Governors did well in entrusting the management of the bank to Mr. Takeshi Watanabe. [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. ADB's operations in 2017, including grants and cofinancing, totaled $28.9 billion. The Asian Development Bank admits the members of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP, formerly the Economic Commission for Asia and the Far East or ECAFE) and non-regional developed countries. (ESCAP, United Nations Publication March 2007, "The first parliament of Asia" pp. She also appreciated the ADB's support to India's G20 Presidency priorities. This is carried out through investments in the form of loans, grants and information sharing in infrastructure, health care services, financial and public administration systems, helping nations prepare for the impact of climate change or better manage their natural resources, as well as other areas. ADB encourages websites and blogs to link to its web pages. In the third poll, Tokyo gained eight votes to Manila's nine, with one abstention. This is not only because most Asian countries lack the capital and the means of development. He was also formerly the vice minister for international affairs in the Ministry of Finance in Japan. ADB encourages websites and blogs to link to its web pages. Traditionally, and because Japan is one of the largest shareholders of the bank, the president has always been Japanese. In this article, we will be covering the Asian Development Bank UPSC notes that include, members, functions, of ABD and voting rights, and the latest news regarding the Asian Development Bank that could be important for the UPSC Exam. Activities News Speeches Videos Profile In this respect, the World Bank has agreed to provide nearly US$ 1.5 billion to Sri Lanka for the next two years. The questions concerning Asian Development Bank are asked both in UPSC Prelims and UPSC Mains, along with sometimes at the Interview stage also. One of the most active sub-sectors of finance is the PSOD's support for trade finance. Countries in central and west Asia have endorsed three new cross-border cooperation initiatives to help accelerate the regions recovery from the COVID-19 pandemic, improve food security, and boost the development of clean energy. Reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. [2] He joined the Ministry of Finance in Japan the same year. However, the idea received a cool reception from the World Bank itself and the study group became discouraged. We know, however, the proximate causes of the success of this great idea of the ADB. From 31 members at its establishment in 1966, at present Asian Development Bank, has 68 members. 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. Article 31), The 12 Directors of the ADB Board of Directors are elected by the Board of Governors. He was elected President by ADB's Board of Governors and assumed office in April 2013. They also have the capability to provide guarantees, equity and mezzanine finance (a combination of debt and equity). We also recognize the potential complementarities in our different development programs which can be approached so as to lessen costs and increase the benefits available to the nations concerned. 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. Executive Director Donald Bobiash and Canada's Ambassador to the Philippines David Hartman, along with other delegates from Canada,joined Governor Sajjan in the meeting. On the Inauguration of Asian Development Bank, [Delivered in Makati, Rizal, December 19, 1966], THE ADB: CORNERSTONE OF A NEW LIFE The dilemma of modern development in Asia is that it must be pursued hand in hand with the welfare of the poorest people. Its headquarters are located in Mandaluyong in the greater metropolitan area of Manila in the Philippines. Asian Development Bank: Founded in 1966, its headquarters are in Manila, Philippines. We are giving the world the first concrete manifestation of regional economic cooperation in Asia. [55], Oxfam Australia has criticized the Asian Development Bank for insensitivity to local communities. [58][59], The bank has been criticized over its role and relevance in the food crisis. Chen was World Bank's Executive Director for the PRC from 2013 to 2016 and a Board Director for the PRC in the New Development Bank and the Asian Infrastructure Investment Bank from 2016 to 2018. Along with this, one needs to practice the UPSC Previous Year Questions. 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. Asian Development Bank President Masatsugu Asakawa is the President of the Asian Development Bank and the Chairperson of ADB's Board of Directors. Managing Director General Woochong Um, Private Sector Operations Department Director General Suzanne Gaboury, Sustainable Development and Climate Change Department Director General Bruno Carrasco, Strategy, Policy, and Partnerships Department Deputy Director General Vijay Padmanabhan, Department of Communications Principal Director Bernard Woods, and Assistant Secretary Harumi Kodama also joined the meeting. Asian Development Bank UPSC 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. [4] The Government of Japan nominated Asakawa as a candidate for position of president ADB in September 2019. The loan has been provided under ADBs Covid-19 Active Response and Expenditure Support (CARES) Program. He was elected President by the Asian Development Bank's Board of Governors. 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. 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]. White Revolution: Meaning, Short Note | Operation Flood, IUCN Red List: Categories, Critically Endangered Species in India, Representation of Peoples Act: Salient Features, RPA 1951 UPSC, Roles and Functions of Asian Development Bank, Biosphere Reserves in India Notes for UPSC Exam, BYJU'S Exam Prep: The Exam [34], ADB obtains its funding by issuing bonds on the world's capital markets. of In a frank and engaging conversation with international broadcast journalist Zeinab Badawi, ADB President Masatsugu Asakawa offered his vision and ideas for change towards a better, greener, more sustainable, and resilient Asia and the Pacific. At the start, it had 31 members but it has grown to 68 members out of which 49 are within Asia and the Pacific. Regional Cooperation and Integration Regional cooperation and integration (RCI) was introduced by President Kuroda when he joined the ADB in 2004. 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. By the end of 1972, Japan had contributed $173.7 million (22.6% of the total) to the ordinary capital resources and $122.6 million (59.6% of the total) to the special funds. This assurance has been given by the Vice President of the South Asian Region . In 1999, ADB adopted poverty reduction as its overarching goal.[18]. Asia with more than half the world population and a steady trend of population growth is at the very center of the world crisis. The decade also saw an expansion of ADB's membership with the addition of several Central Asian countries following the end of the Cold War. After he took over, ADB made significant contributions to the regional response to the COVID-19 pandemic by providing a $20 million package and a $9 billion Asia Pacific Vaccine Facility. In the early 1990s, ADB moved its offices to Ortigas Center in Pasig City, with the Department of Foreign Affairs (Philippines) taking over its old Pasay premises. We also know that the obligation of developed nations to help the less developed nations in their own development is a relatively new and revolutionary idea in history. The Asian Development Bank's primary mission is to foster growth and cooperation among countries in the Asia . Asian Development Bank aims to promote social and economic development in Asia and the Pacific. That such can already be done in the worlds vastest and least homogenousregion, compliments the maturity and open-mindedness of the Asian nations. He was elected President by ADBs Board of Governors and assumed office on 17 January 2020. India is one of the founding members of the ADB. To download the Asian Development Bank UPSC Notes PDF, click here. The Asian Development Bank (ADB) is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. ADB is a multilateral development bank with headquarters in Manila, resident missions across the Asia and Pacific region, and representative offices in Tokyo, Frankfurt, and Washington, DC. The recognition of this necessity is an act of maturity and wisdom. The per capital foreign aid to Southeast Asia is only $2.50 while it is $5.90 to Africa and $5 to Latin America. 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. 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. [9], As of 31 December 2020, Japan and the United States each holds the largest proportion of shares at 15.571%. Moreover, Japan received tangible benefits, 41.67% of the total procurements between 1967 and 1976. His qualifications, background and experience eminently fit him for his new position. To decide, the 18 prospective regional members of the new bank held three rounds of votes at a ministerial conference in Manila in November/December 1965. [19][20], In the 1970s, ADB's assistance to developing countries in Asia expanded into education and health, and then to infrastructure and industry. ADB partners with other development organizations on some projects to increase the amount of funding available. 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. 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. ADB President Masatsugu Asakawa introduced the 2020 Partnership Report at thisvirtual launch. [8] ADB is an official United Nations Observer. As a key player in the concept, Japan hoped that the ADB offices would be in Tokyo. [13], The headquarters of the bank is at 6 ADB Avenue, Mandaluyong, Metro Manila, Philippines,[14][15] and it has 42 field offices in Asia and the Pacific and representative offices in Washington, Frankfurt, Tokyo and Sydney. Established in 1966, it is owned by 68 members49 from the region. President of the Philippines On the Inauguration of Asian Development Bank [Delivered in Makati, Rizal, December 19, 1966] THE ADB: CORNERSTONE OF A NEW LIFE IN ASIA The Filipino people are proud to share with you on our native soil this historic moment in the life of modern Asia. [10], The highest policy-making body of the bank is the Board of Governors, composed of one representative from each member state. Private Sector Lending This priority was introduced into the ADB's activities at the insistence of the Reagan Administration. In 2014, $9.2 billionor nearly halfof ADB's $22.9 billion in operations were financed by other organizations. [6][7] In the first instance, Asakawa was expected to serve out the remainder of the five-term presidential term which Nakao began in November 2016. Asian Development Bank President Masatsugu Asakawa is the President of the Asian Development Bank and the Chairperson of ADB's Board of Directors. 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." 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. Mr. Asakawas professional experience extends beyond the realms of the Japanese government. Learn more about the Philippine government, its structure, how government works and the people behind it. This is the foreign exchange gap involved in economic modernization and the raising of productivity. It also relies on the contributions of member countries, retained earnings from lending operations, and the repayment of loans. The mobilization of outside capital for development of Asian economy makes the Bank a unique institution. Read thenews release. [18], In early 2012, the ADB began to re-engage with Myanmar in response to reforms initiated by the government. ADB and its role in the world economy; More details on ADB for UPSC IAS exam. "Operating at a global and international level, these banks can undermine people's human rights through projects that have detrimental outcomes for poor and marginalized communities. 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. He was instrumental in orchestrating a globally coordinated financial package to abate the financial crisis, including a $100 billion loan from Japan to the International Monetary Fund (IMF). ADBs highest policy-making body is the Board of Governors, which comprises one representative from each member nation 48 from the Asia-Pacific and 19 from outside the region. [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. [7] The ADB-Japan Scholarship Program (ADB-JSP) enrolls about 300 students annually in academic institutions located in 10 countries within the Region. The World Bank has given Southeast Asia only 5.3 per cent of all loans. Explore [42] ADB does not disclose information that jeopardizes personal privacy, safety and security, certain financial and commercial information, as well as other exceptions. A year later, Japanese Prime Minister Nobusuke Kishi announced that Japan intended to sponsor the establishment of a regional development fund with resources largely from Japan and other industrial countries. Asian Development Bank(ADB) is a regional development bank, established in December 1966. See full account in "Banking the Future of Asia and the Pacific: 50 Years of the Asian Development Bank," July 2017. The Asian Development Bank (ADB) is a regional development bank established on 22 August 1966 to facilitate economic development of countries in Asia. In April 2014, ADB opened an office in Myanmar and resumed making loans and grants to the country. Japanese Prime Minister Eisaku Sat asked Watanabe to be a candidate. In contrast, the United States contributed only $1.25 million to the special fund. Traditionally, and because Japan is one of the largest shareholders of the bank, the president has always been Japanese. 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. From 31 . History of ADB. 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It creates prosperity that can be shared throughout society and benefit the poorest and most vulnerable people. Its headquarters are located in Mandaluyong in the greater metropolitan area of Manila in the Philippines. Asian Development Bank is an official United Nations Observer. He served for seven years until January 2020, overseeing an . 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. Some of his outstanding achievements in Osaka include the endorsement by the G20 Leaders of the G20 Principles for Quality Infrastructure Investment and the G20 Shared Understanding on the Importance of UHC Financing in Developing Countries. Eighty percent of ADB's lending is concentrated public sector lending in five operational areas. Masatsugu Asakawa is the President of the Asian Development Bank (ADB) and the Chairperson of ADBs Board of Directors. While the institution had such operations since the 1980s (under pressure from the Reagan Administration) the early attempts were highly unsuccessful with low lending volumes, considerable losses and financial scandals associated with an entity named AFIC.