Inspiring Progress Through the Asian Development Bank
The Asian Development Bank’s primary mission is to foster economic growth and cooperation among countries in the Asia-Pacific Region. Founded in 1966 and based in Manila, Philippines, the ADB assists members and partners by providing loans, technical assistance, grants, and equity investments to promote social and economic development.
The ADB has been responsible for major projects in the region and raises capital regularly through international bond markets. The ADB also relies on member contributions, retained earnings from lending, and the repayment of loans for the funding of the organization.
Key Highlights
- The Asian Development Bank’s (ADB) primary mission is to promote economic growth and cooperation in the Asia-Pacific Region.
- The majority of the ADB’s members are in the Asia-Pacific region.
- The ADB provides assistance to its developing member countries in the region.
- It also provides financing to certain private sector projects as well as public-private partnerships through grants, loans, technical assistance, and equity investments to promote development.
- The ADB is controlled by member countries, with the U.S. and Japan having the largest stake.
The Mechanics of Progress: How the Asian Development Bank Works
The Asian Development Bank provides assistance to its developing member countries, the private sector, and public-private partnerships through grants, loans, technical assistance, and equity investments to promote development. The ADB regularly facilitates policy dialogues and provides advisory services. They also use co-financing operations that tap official, commercial, and export credit sources while providing assistance.
Membership in the ADB is open to members and associate members of the United Nations Economic Commission for Asia and the Far East. It’s also open to other regional countries and non-regional developed countries that are members of the U.N. or of any of its specialized agencies.
The ADB is one of two Asian regional development banks, the other being the Chinese-led Asian Infrastructure Investment Bank (AIIB).
Empowering Growth: Financing Provided by the Asian Development Bank
The ADB provides both private financing and sovereign (public) financing. Private sector efforts focus on projects that help promote private investments in the region that will have significant development impact and will lead to accelerated, sustainable, and inclusive growth. Public-sector financing provides funding for member countries with flexibility in determining how they can achieve development goals. In 2021, the ADB committed nearly US $13.5 billion to help its developing member countries address the impacts of the COVID-19 crisis and address vaccination needs and has mobilized a further $12.9 billion in co-financing from partners. Through a $9 billion Asia Pacific Vaccine Access Facility, or APVAX, announced in December 2020, the ADB provided funding for vaccine procurement, logistics, and distribution.
The total private financing portfolio consisted of $14.2 billion at the end of 2021. In terms of sovereign financing, ADB’s portfolio stood at $104 billion by the end of 2021, consisting of 713 loans, 392 grants, 915 TA projects, one guarantee, and 1 equity investment.
A Strong Foundation: Structure of the Asian Development Bank
“The Agreement Establishing the Asian Development Bank, known as the ADB Charter, vests all the powers of the institution in the Board of Governors, which in turn delegates some of these powers to the Board of Directors. The Board of Governors meets formally once a year during ADB’s Annual Meeting.” The ADB’s highest policy-making body is its Board of Governors, which comprises one representative from each member.
The two largest shareholders of the Asian Development Bank are the United States and Japan. Although the majority of the Bank’s members are from the Asia-Pacific region, the industrialized nations are also well-represented. Regional development banks usually work in harmony with both the International Monetary Fund (IMF) and the World Bank in their activities.
Building Relationships: Asian Development Bank Country Membership
When ADB was founded in 1966, it consisted of 31 members. Since then, membership has grown to 68 members, which is made up of 48 regional and 19 non-regional members. Membership as of 2022 includes:
Regional Members
| Member | Year of Membership |
|---|---|
| Afghanistan | 1966 |
| Armenia | 2005 |
| Australia | 1966 |
| Azerbaijan | 1999 |
| Bangladesh | 1973 |
| Bhutan | 1982 |
| Brunei Darussalam | 2006 |
| Cambodia | 1966 |
| Cook Islands | 1976 |
| Federated States of Micronesia | 1990 |
| Fiji | 1970 |
| Georgia | 2007 |
| Hong Kong, China | 1969 |
| India | 1966 |
| Indonesia | 1966 |
| Japan | 1966 |
| Kazakhstan | 1994 |
| Kiribati | 1974 |
| Kyrgyz Republic | 1994 |
| Lao People’s Democratic Republic | 1966 |
| Malaysia | 1966 |
| Maldives | 1978 |
| Marshall Islands | 1990 |
| Mongolia | 1991 |
| Myanmar | 1973 |
| Nauru | 1991 |
| Nepal | 1966 |
| New Zealand | 1966 |
| Niue | 2019 |
| Pakistan | 1966 |
| Palau | 2003 |
| Papua New Guinea | 1971 |
| People’s Republic of China | 1986 |
| Philippines | 1966 |
| Republic of Korea | 1966 |
| Samoa | 1966 |
| Singapore | 1966 |
| Solomon Islands | 1973 |
| Sri Lanka | 1966 |
| Taipei,China | 1966 |
| Tajikistan | 1998 |
| Thailand | 1966 |
| Timor-Leste | 2002 |
| Tonga | 1972 |
| Turkmenistan | 2000 |
| Tuvalu | 1993 |
| Uzbekistan | 1995 |
| Vanuatu | 1981 |
| Viet Nam | 1966 |
Non-Regional Members
| Member | Year of Membership |
|---|---|
| Austria | 1966 |
| Belgium | 1966 |
| Canada | 1966 |
| Denmark | 1966 |
| Finland | 1966 |
| France | 1970 |
| Germany | 1966 |
| Ireland | 2006 |
| Italy | 1966 |
| Luxembourg | 2003 |
| Netherlands | 1966 |
| Norway | 1966 |
| Portugal | 2002 |
| Spain | 1986 |
| Sweden | 1966 |
| Switzerland | 1967 |
| Türkiye | 1991 |
| United Kingdom | 1966 |
| United States | 1966 |
The two largest shareholders of the Asian Development Bank are the United States and Japan. Both countries have a majority ownership of the bank with 15.6% each.
Leadership and Ownership: Who Controls the Asian Development Bank?
The ADB is run by a board of governors, which represent the member countries. 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%).
Where Excellence Resides: The Headquarters of the Asian Development Bank
The Asian Development Bank has its headquarters in Manila, Philippines.
A Proud Member: India and the Asian Development Bank
Yes, India is a regional member country of the ADB.
References
- Asian Development Bank. “ADB Charter”.
- Asian Development Bank. "$9 Billion ADB Facility to Help Developing Member Countries Access and Distribute COVID-19 Vaccines".
- Asian Development Bank. “Who We Are”.
- Asian Development Bank. “2021 Annual Performance Report”, Pages ii-iv.
- Asian Development Bank. “Board of Governors”.
- Asian Development Bank. “About: Members”.
- Center for Strategic & Int’l Studies. “The Asian Development Bank: A Strategic Asset for the United States”.
