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The purpose of the creation and opening of the Asian Development Bank

The Asian Development Bank (ADB) is engaged in one of the most important areas of modern development - the fight against poverty. It operates in a region where about 700 million people live with incomes below $ 1 per day and 1.9 billion (more than a quarter of the world's population) with incomes below $ 2 per day.

Historical reference

ADB was conceived in the 60s as a financial institution that promoted economic growth, interstate cooperation in one of the poorest regions of the world. The resolution adopted in 1963 at the Special Conference of Ministers of Neighboring Countries brought dreams closer to reality.

The opening of the Asian Development Bank took place on 19.12.1966. Initially, the main goal was to declare support for agricultural areas. In the 60's, the organization focused most of its assistance in food production. Manila was chosen as the center for ADB accommodation. The first president was Takeshi Watanabe.

Asian Development Bank: the goal of creating

The financial institution has a noble mission. Organization:

  • Contributes to sustainable economic growth in the Asia-Pacific region, in which all member countries are interested;
  • Plays a critical role in development processes;
  • Acts as a catalyst in economic and social processes;
  • Stimulates regional and subregional cooperation.

In the fight against poverty, ADB works in two main areas:

  • Providing financial support for certain projects and programs to reduce poverty and ensure economic growth;
  • Preparation of recommendations and analysis to member governments for use in improving policy implementation, and institutions to improve the standard of living of the population.

Information Policy

The bank has developed a strategic information program. It determines the content of information messages, target audiences and channels for their transmission. For efficiency, ADB works with various organizations and a wide range of people.

To create strong and productive partnership relations, it highlights its activities, the motivation of the Asian Development Bank and the goals of its activities are clear and understandable. To build trust and stimulate development with active public participation, ADB demonstrates openness and responsibility through active exchange of information and feedback from all stakeholders.

Structure

The Asian Development Bank is a multilateral organization, with 67 participating countries, 48 from the region and 19 from other parts of the world. The main tools of ADB to assist its developing member countries are policy dialogue, loans, equity investments, guarantees, grants and technical assistance.

Financial activities

The bank has serious savings for investment projects. If at the dawn of its formation, it operated with the amounts of just over $ 1 billion, then by the 1980s the fund reached $ 10 billion. The organization met with an impressive capital of $ 50 billion by the 1980s.

The structure of the activity is simple: rich borrowing governments supplement the ADB investment fund, which helps to implement development projects in poor regions. The terms of the loan are very attractive, if compared with the commercial financial market.

Statistics

In 2015, the volume of loans to the Asian Development Bank amounted to $ 15.45 billion (107 projects), technical assistance (TA) $ 141.30 million (199 projects) and the volume of programs funded by grants amounted to $ 365.15 million (17 projects).

In addition, $ 10.74 billion of direct co-financing was generated in the form of official loans and grants, other concessional financing and commercial co-financing. Among them:

  • Loans of class "B";
  • Mechanisms for transferring risks;
  • Co-financing of guarantees;
  • Concurrent loans;
  • Parallel capital;
  • Co-financing of operations under the ADB's Trade Facilitation Program.

For the period from January 1, 2011 to December 31, 2015, the annual volume of ADB lending averaged $ 12.93 billion. In addition, the volume of investment grants and TA financed by ADB and special fund resources averaged $ 580.66 million and $ 150, 23 million in TA for the same period.

In 2016, ADB operations reached an unprecedented maximum of $ 31.5 billion, an increase of 17% over 2015. Established loans and grants for sovereign and non-sovereign operations reached $ 17.5 billion (9% increase), non-concessional loans amounted to $ 14.4 billion. Preferential borrowings exceeded $ 3.1 billion. Technical assistance increased by about 20% to $ 170 million.

Asian Development Bank: will it help Russia

Most of the territory of Russia is concentrated in Asia, occupying a third of the continent. Although Russia does not belong to the poorest countries, cooperation with ADB seems logical. The issue of integration is actively discussed, while the country has observer status in the bank's structure.

The barrier to accession is the watchful position of the main shareholders of ADB - Japan and the United States. However, the diplomatic breakthrough in the dialogue with Japan and the change in the political and economic policy of the new US administration are bringing the idea of Russia's entry into the bank's structure on the rights of a donor country.

Membership will allow the Russian Federation to deepen interaction with states by APEC members. Investment in agricultural programs, support for private initiatives, assistance in the development of infrastructure projects are a priority for the Asian Development Bank, and Russia just needs to co-finance these projects.

Activities in the CIS countries

ADB actively cooperates with the Central Asian countries: Tajikistan, Turkmenistan, Kyrgyz Republic, Kazakhstan, Uzbekistan. Kazakhstan has been cooperating with ADB since 1994. The bank allocated $ 4.4 billion for the country for projects in agriculture, irrigation, education, financial sector, transport, water supply and sanitation. The total volume of disbursed funds of the Asian Development Fund amounted to $ 3.74 billion.

The organization participates in the reconstruction of 375 km of the international transit corridor in the Zhambyl region, which is almost completed. Repair of 470 km of the Aktau-Beineu route in Mangistau oblast, which should reduce the average travel time from 12 to 4 hours, is in the process of implementation.

In 2015, ADB approved a loan of $ 1 billion to help Kazakhstan implement economic programs aimed at combating the sharp decline in world oil prices and the economic downturn in neighboring countries. In the energy sector, it provides technical assistance in developing a project for the modernization of heat supply networks.

Since the beginning of cooperation, ADB has approved six projects for the private sector in Kazakhstan for a total amount of financing of $ 455.2 million. By 2016, the total balance of debt and liabilities for operations in the private sector was $ 66.64 million. In turn, Kazakhstan became a donor to the preferential Asian Fund Development, investing $ 5.49 million in 2012.

Since 1996, the Asian Development Bank's programs in such areas as transport, energy, water supply and sanitation, education and finance have had a significant impact on people's lives in Uzbekistan. Close working relations between ADB and the government allowed the bank in 2009 to double its resources invested in the republic. For example, the program of credit unions helped to ensure the inflow of money for the neediest and poorest households, as well as for small and microenterprises. The Bank facilitated the creation of a network of 100 credit unions, uniting 141,000 members, from $ 88 million in deposits and $ 107 million of loan portfolio.

Women in rural communities of Uzbekistan received cash and learned the skills necessary to establish successful home-based production. The initiative helped more than 1,000 women save money, and at least 80% of them opened their businesses later.

Subtotals

Despite the transformation of Asia into an economic motor of the planet, the real situation is ambiguous. While the work of the Asian Development Bank has contributed more than half to extreme poverty reduction, there are still 1.2 billion people living in the region who live on $ 3 a day, almost 3/4 of the world's children are underweight. 600 million people are deprived of electricity, 1.7 billion people do not use improved sanitation. ADB has to do an incredible amount of work for the sustainable development of the world's poorest areas.

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