- Prelims – Current Affairs (International Institutions)
Context: The Asian Development Bank (ADB) has pared its 2022-23 growth projection for India’s economy to 7% from 7.5% estimated in April, terming it a “modest downward revision” driven by higher-than-anticipated inflation and monetary tightening.
In this context let us know the financial institution in detail:
Origins of ADB:
- 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.
- A resolution passed at the first Ministerial Conference on Asian Economic Cooperation held by the United Nations Economic Commission for Asia and the Far East in 1963 set that vision on the way to becoming reality.
- The Philippines capital of Manila was chosen to host the new institution, which opened in 1966, with 31 members that came together to serve a predominantly agricultural region. Takeshi Watanabe was ADB’s first President.
- During the 1960s, ADB focused much of its assistance on food production and rural development.
- In May 2014, plans were announced to combine the lending operations of ADB’s two main funds, the Asian Development Fund, and its ordinary capital resources. The merger will boost ADB’s total annual lending and grant approvals to as high as $20 billion—50% more than the current level when it takes effect in January 2017.
- From 31 members at its establishment in 1966, ADB has grown to encompass 68 members including India—of which 49 are from within Asia and the Pacific and 19 outside.
- This bank was modelled on the lines of the world bank. As of 31st December 2021, Japan holds the largest share in ADB with 15.677%, followed by U.S.A (15.567%), China (6.473%), and India (5.812%).
- It is headquartered in Manila, Philippines.
ADB Green and Blue Bonds:
- The Green Bond program enables ADB to support its developing member countries seeking to mitigate greenhouse gas (GHG) emissions and adapt to the consequences of climate change, whilst delivering environmentally sustainable growth to help reduce poverty and improve the quality of life of their people.
- The Green Bond portfolio specifically targets projects that promote the transition to low carbon and climate resilient growth as set out in the ADB Green Bond Framework.
- In order to address the growing funding gap required to protect and restore ocean health, global markets need to systematically change. ADB’s Blue bonds encourage that shift by increasing the amount of capital that can be invested in oceans to finance solutions at scale.
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).
Source: The Hindu
Previous Year Question
Q.1) In which one of the following groups are all the four countries members of G20? (2020)
- Argentina, Mexico, South Africa, and Turkey
- Australia, Canada, Malaysia, and New Zealand
- Brazil, Iran, Saudi Arabia, and Vietnam
- Indonesia, Japan, Singapore, and South Korea