Asian Development Bank: Members and Organistaion

Banks play an important role in managing and regulating the economy throughout the world. These banks can be local, state-level, national and, in some cases, international. Asian Development Bank is an example of this international banking system. The Asian Development Bank, established on 19th December 1969, focuses on the regional development of that particular area. Asian Development Bank headquarters in the Philippines in Mandaluyong, Metro Manila. When Asian Development Bank was established, the total number of members was 31. However, over time new countries have joined, and the current Asian Development Bank members are 68.

Asian Development Bank Members

The hierarchy of Asian Development Bank members is decided very carefully. At first, the Board of Governors comprises the highest policymaking in the bank. This governing body has to contain one representative from each Asian Development Bank member. Under this body, several deputies are decided by the same board of selected 12 board members. Out of these twelve, eight belong to the Asia-Pacific region, while others are non-regional representatives among the Asian Development Bank members. 

Asian Development Bank Organisation

The function of these boards of Governors also includes the appointment of a president or chairperson for the bank. It has been observed over the years that Japanese representatives are more likely to be elected as the president of the bank due to their largest stakeholding among the Asian Development Bank members. At present, the president of the Bank is Masatsugu Asakawa. On tracing its predecessors, Takehiko Nakao was president of the bank till 2020; before him, the presidency of the Asian Development Bank was under Haruhiko Kuroda, who became the chairperson in 2013.

Voting System of the Asian Development Bank

Analysing the system of organisation of the Asian Development Bank is similar to that of the World Bank. This analogy can be drawn because of a similar voting system. The distribution of votes is done based on Asian Development Bank members’ capital subscriptions or shares. Japan’s total shares add up to 15.6%, which is the highest among other members, followed by the USA, which has a share value of 15.56% and then China, having a share value of 5.8%.

Aims and Objectives of the Organisation

• The main aim of the Asian Development Bank headquarters is to promote development in the social sphere. 
• This aim is achieved by reducing poverty in the area by following inclusive growth policies, sustainable development and regional cooperation. 
• The bank tries to conquer these goals by investing heavily in the public sector. 

India’s Status in Asian Development Bank

Asian Development Bank established its presence in India from the start. But, the proper utilisation of the bank started in India in 1986. The objectives of the Asian Development Bank in India include supporting the country in industrial development and excellence, creating new job opportunities, uplifting low-income states economically and socially, and tackling environmental and climatic changes in the best manner possible. 

Currently, these aims and objectives have been achieved in sectors such as energy, transport, human resource development, urban services, water, finance, public-sector management and agriculture and related fields. In addition to this, several projects are in India in around 25 states of the Asian Development Bank. These projects include railway and mass rapid transit systems, coastal protection, renewable energy and efficiency, river basin management, urban environment management etc. 

Strategic Partnerships of Asian Development Bank

Asian Development Bank members currently have many ongoing Memorandum of Understanding (MoU) with several other organisations. For example, the MoU with the European Investment Bank (EIB) covers public and private partnerships, climate conservation, making fl transactions etc. Another MoU with New Development Bank (NDB) entails cooperation in areas of shared interests and better strategic cooperation. The Asian Development Bank also supports the Sustainable Development Goals (SDGs) and strives to commission these goals under Strategy 2030. It also has MoU with organisations like World Bank, Asian International Investment Bank, European Bank for Reconstruction and Development etc. 

Conclusion

Asian Development Bank, established in 1969, plays an important role in the upliftment and social development of the regional countries in Asia and the Pacific and other non-regional countries. It grants opportunities and provides large investments to the developing and less-developed countries to accelerate their development process. India has diplomatically maintained good relations with the bank and has been utilising grants from the organisation for the country’s development. It has been observed that many other developing countries, such as the Philippines, Malaysia, and China, have been properly managing the aid and using them to boost their infrastructure and social structure.