India recently signed a $500 million loan agreement with the Asian Development Bank (ADB) to support sustainable infrastructure projects. This highlights the pivotal role ADB plays in fostering development across the Asia-Pacific region.
About the Asian Development Bank (ADB)
Headquarters and Genesis
Headquarters: Manila, Philippines.
Establishment: ADB was founded in 1966 as a multilateral development finance institution.
Mission
ADB’s primary objective is to create a prosperous, inclusive, resilient, and sustainable Asia-Pacific, while continuing its efforts to eradicate extreme poverty.
Key Functions
Financial Assistance:
Provides loans, technical assistance, grants, and equity investments to its members and partners.
Promotes projects focused on social and economic development.
Membership:
69 members, with 49 from Asia and the Pacific and 20 from outside the region.
India is a founding member of ADB.
Policy-Making Body:
The Board of Governors is ADB’s highest policy-making authority, comprising one representative from each member country.
India’s Engagement with ADB
India has been a significant partner of ADB since its inception. The recent $500 million loan agreement will:
Boost sustainable infrastructure development.
Aid sectors such as transportation, energy, and urban development.
Support India’s commitment to achieving the UN Sustainable Development Goals (SDGs).
Broader Role of ADB
Climate Change and Resilience:
ADB focuses on reducing climate vulnerability in the Asia-Pacific region by funding green energy and climate-resilient infrastructure.
Poverty Eradication:
Through initiatives in education, healthcare, and livelihood creation, ADB works to reduce poverty levels.
Regional Integration:
Facilitates connectivity and economic cooperation between member countries.
Relevance for UPSC
Understanding ADB’s structure, functions, and India’s engagement with the bank is crucial for topics like International Organizations, India’s Economic Development, and Global Partnerships.
Practice Question
Consider the following statements regarding the Asian Development Bank (ADB):
ADB was established in 1966 and has its headquarters in Tokyo, Japan.
India is a founding member of ADB.
ADB provides loans and technical assistance to promote sustainable development in its member countries.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2, and 3
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