Asian Development Bank or ADB is an important international organization that affects India and other nations, especially in the financial sector. It is also seen in the news frequently, which makes it relevant for UPSC preparation.
This article will provide relevant developments related to ADB & India for the IAS Exam.
Know about the Asian Development Bank for UPSC
|Asian Development Bank (ADB) – Details for UPSC|
|When was it established?||1966|
|Where is its head office located?||Manilla, Philippines|
|How many members does it have?||68 shareholding members including 49 from the Asia and Pacific region|
|Who was its first President?||Takeshi Watanabe|
|Who is ADB’s current President?||Masatsugu Asakawa (Assumed office from 17th January 2020). He was the Special Advisor to Japan’s Prime Minister and Minister of Finance.|
|What is the purpose of ADB?||To provide prosperity, inclusivity, resilience, and sustainability to Asia and Pacific along with eradication of poverty|
|What is Strategy 2030 for ADB?||Strategy 2030 sets the course for the Asian Development Bank (ADB) to respond effectively to the region’s changing needs. Under Strategy 2030, ADB will sustain its efforts to eradicate
extreme poverty and expand its vision to achieve a prosperous, inclusive, resilient, and
sustainable Asia and the Pacific
|Is India a founding member of ADB?||Yes, India is a founding member of the Asian Development Bank|
Asian Development Bank (ADB) was established in the year 1966, with head office at Manila (Philippines). It has 67 members from the Asia Pacific region. This bank was modeled on the lines of the world bank. Japan holds the largest share in ADB with 15.677%, followed by U.S.A (15.567%), China (6.473%), and India (5.812%). The aim of the ADB is social development by reducing poverty in the Asia Pacific with inclusive growth, sustainable growth, and regional integration. This is carried out through an 80% investment in the public sector. ADB invests in infrastructure, health, public administration system, helping nations to reduce the impact of climate change and to manage natural resources.
Asian Development Bank (ADB) & India – Facts for IAS Exam
India started availing of ADB’s assistance in 1986. The aim is of Asian Development Bank is to support India in the following fields:
- Industrial competitiveness
- Jobs creation
- Growth acceleration of low-income states
- Environmental and climate change challenges
There are six sectors in India where we can see ADB’s presence:
- Water and urban services
- Finance and public sector management
- Agriculture and natural resources, and
- Human development
The projects in India spanning 25 states where ADB has assisted/is assisting are:
- Railways and mass rapid transit system
- Renewable energy and energy efficiency
- Coastal protection
- Riverbank strengthening & river basin management
- Urban environmental management, including water management, sanitation, and sewerage and solid waste management.
Recent development between ADB & India:
- ADB and India have signed a loan of $206 million to strengthen urban services in 5 Tamil Nadu cities
- Asian Development Bank (ADB) has listed its 10-year masala bonds worth Rs 850 crore on the global debt listing platform of India INX
- Asian Development Bank (ADB) had prepared a Conceptual Development Plan (CDP) for Vizag-Chennai Industrial Corridor (VCIC)
- ADB has offered to provide USD 4 million to member countries to contain coronavirus outbreak.
Asian Development Bank (ADB) on Governance – UPSC Exam
A policy paper titled, “Governance: Sound Development Management” was outlined in October 1995. ADB defined governance as, ‘the manner in which power is exercised in the management of a country’s economic and social resources for development’.
ADB gave two dimensions to governance:
- Political – Democracy, Human Rights
- Economic – Efficient management of public resources
ADB has identified four basic elements of good governance:
- Public officials should be answerable for government behaviour and responsive to the entity from which they derive authority.
- The accountability of public sector institutions is facilitated by an evaluation of their economic performance.
- The suggested specific areas of action would be in the building of government capacity through, for example, public-sector management, public-enterprise management and reform, public financial management, and civil-service reform.
- Government structures should be flexible enough to offer beneficiaries and others affected the opportunity to improve the design and implementation of public programmes and projects.
- The specific areas of action would be in the development of participatory development processes through, for example, the participation of beneficiaries, a public/private-sector interface, decentralization/empowerment of local government, and cooperation with non-governmental organizations (NGOs).
- Laws and policies should exist that regulate society and that are applied fairly and consistently.
- Predictability requires the state and its subsidiary agencies to be bound by and answerable to the legal system in the same way as private enterprises and individuals.
- The specific area of action could be the development of predictable legal frameworks for private-sector development.
- Information should be made available to the general public and there should be clarity as to rules and regulations.
- Access to timely information on the economy can be vital to economic decision-making by the private sector and can also serve to inhibit corruption.
All the above elements are interlinked and mutually supportive and reinforcing. Accountability is often related to participation and is also the ultimate safeguard of predictability. Transparency and predictability in the functioning of a legal framework would serve to ensure the accountability of public institutions.