Asian Development Bank facts for kids
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Headquarters in 2011
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| Abbreviation | ADB |
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| Formation | 19 December 1966 |
| Type | Multilateral Development Bank |
| Legal status | Treaty |
| Purpose | Social and Economic Development |
| Headquarters | 6 ADB Avenue, Mandaluyong, Metro Manila 1550, Philippines |
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Region served
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Indo-Pacific |
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Membership
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68 countries |
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President
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Masatsugu Asakawa (from 17 January 2020) |
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Main organ
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Board of Governors |
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Staff
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3,769 |
The Asian Development Bank (ADB) is a special bank that helps countries in Asia and the Pacific grow and develop. It was started on December 19, 1966, and its main office is in Mandaluyong, Metro Manila, Philippines. The ADB also has many smaller offices around the world. These offices help to improve life and economies in Asia.
When it first started, the ADB had 31 member countries. Today, it has 68 members. These members include countries from Asia and the Pacific, as well as other developed countries. The ADB works a lot like the World Bank. Countries that put more money into the bank get more votes. The ADB publishes a report each year that explains what it has done, how it spent its money, and other important information.
The ADB also has a scholarship program with Japan. This program helps about 300 students each year study in different countries. After they finish their studies, these students are expected to go back home. They use their new skills to help their own countries grow and develop. The ADB is also an official observer at the United Nations. This means it can attend UN meetings and share its ideas.
As of December 31, 2020, Japan and the United States own the largest parts of the ADB, each with about 15.57% of the shares. China owns 6.43%, India owns 6.32%, and Australia owns 5.77%.
Contents
How the ADB is Organized
The most important group that makes decisions for the ADB is called the Board of Governors. This board has one person from each member country. The Board of Governors then chooses 12 people to be on the Board of Directors. Eight of these directors come from countries in Asia and the Pacific. The other four come from countries outside this region.
The Board of Governors also chooses the ADB's president. The president is in charge of the Board of Directors and manages the whole bank. The president serves for five years and can be chosen again. Because Japan is one of the biggest supporters of the bank, the president has always been from Japan.
The current president of the ADB is Masatsugu Asakawa. He became president on January 17, 2020. Before him, Takehiko Nakao was president, and before him was Haruhiko Kuroda.
The main office of the ADB is in Mandaluyong, Metro Manila, Philippines. It also has 42 smaller offices across Asia and the Pacific. There are also offices in Washington, Frankfurt, Tokyo, and Sydney. About 3,000 people work for the ADB. These employees come from 60 of the 68 member countries.
ADB Presidents Through the Years
| Name | Dates | Nationality |
|---|---|---|
| Takeshi Watanabe | 1966–1972 |  Japanese |
| Shiro Inoue | 1972–1976 | Japanese |
| Taroichi Yoshida | 1976–1981 | Japanese |
| Masao Fujioka | 1981–1989 | Japanese |
| Kimimasa Tarumizu | 1989–1993 | Japanese |
| Mitsuo Sato | 1993–1999 | Japanese |
| Tadao Chino | 1999–2005 | Japanese |
| Haruhiko Kuroda | 2005–2013 | Japanese |
| Takehiko Nakao | 2013–2020 | Japanese |
| Masatsugu Asakawa | 2020–present | Japanese |
ADB's History
The idea for a bank like the ADB started way back in 1956. Japan's Finance Minister, Hisato Ichimada, suggested a new bank to help countries in Southeast Asia. Later, Japan's Prime Minister, Nobusuke Kishi, also wanted to create a regional development fund. But at first, the United States was not very interested in the idea.
The idea came up again in 1962. An economist from Tokyo, Kaoru Ohashi, suggested forming a study group. This group looked into how to create a development bank for Asia. They learned from the World Bank's experiences.
In 1963, a Thai economist, Paul Sithi-Amnuai, officially suggested the idea at a conference. Even though there were mixed reactions at first, more and more people started to support the idea of a new bank.
Japan was a key supporter of the ADB. They hoped the main office would be in Tokyo. However, eight other cities also wanted to host the bank. In 1965, the member countries voted. After three rounds, Manila in the Philippines won by one vote. So, Manila became the home of the new development bank.
In 1966, a lot of work was done to get the bank ready to open. Takeshi Watanabe from Japan was chosen as the first president of the ADB. He was elected on November 24, 1966.
Helping Asia Grow: The Early Years (1960s-1980s)
When the ADB first started in the 1960s, Asia was one of the poorest regions in the world. The bank focused on helping countries produce more food and develop their rural areas. Early loans went to countries like Indonesia, Thailand, Malaysia, South Korea, and the Philippines.
In the 1970s, the ADB started helping with education and health. Then, it also focused on building roads and providing electricity. When oil prices went up, the ADB helped countries develop their own energy sources.
In the 1980s, the ADB began to work with private businesses. This was to help its development efforts even more. In 1982, the ADB opened its first field office in Bangladesh. Later, it started working more with non-government organizations (NGOs).
The ADB moved its main office to Ortigas Center in Pasig City, Philippines, in the early 1990s.
Expanding and Responding to Crises (1990s-2000s)
In the 1990s, the ADB started to encourage countries in the Mekong River area to work and trade together. More countries from Central Asia joined the ADB after the Cold War ended.
When a financial crisis hit Asia in 1997, the ADB helped countries strengthen their financial systems. It also created safety nets for poor people. The ADB gave its largest loan ever, $4 billion, to South Korea during this crisis. By 1999, the ADB made reducing poverty its main goal.
In the early 2000s, the ADB greatly increased its support for private businesses. In 2003, when the SARS epidemic spread, the ADB helped countries work together to fight infectious diseases. It also helped after natural disasters, like the 2004 tsunami and the 2005 earthquake in Pakistan.
In 2009, the ADB's capital (the money it has) was tripled from $55 billion to $165 billion. This gave the bank many more resources to help with the global economic crisis.
Modern Challenges and Growth (2010s-Present)
After the economic crisis, Asia became a big engine for global economic growth. However, many people in the region were still poor. The ADB continued to provide loans and grants to help with economic growth.
In 2012, the ADB started working with Myanmar again after the government made reforms. In 2017, the ADB combined some of its funds. This allowed it to increase its yearly lending and grants to $20 billion by 2020.
In 2020, the ADB gave a $2 million grant to Armenia to help fight the COVID-19 pandemic. It also provided a $20 million loan to ensure electricity for citizens during the pandemic.
What the ADB Aims to Do
The ADB sees itself as an organization that helps communities grow. Its main goal is to reduce poverty in Asia and the Pacific. It does this by promoting economic growth that includes everyone. It also supports growth that is good for the environment and helps countries work together.
The ADB invests in many areas. These include:
- Building roads and other infrastructure.
- Improving health care services.
- Strengthening financial systems and public administration.
- Helping countries get ready for climate change.
- Teaching countries how to better manage their natural resources.
Key Areas of Focus
Most of the ADB's lending goes to five main areas:
- Education: Many countries in Asia have improved primary education. But there are still big challenges that affect economic and social growth. The ADB helps improve schools and learning.
- Environment, Climate Change, and Disaster Risk Management: Taking care of the environment is very important for economic growth and reducing poverty. The ADB helps countries protect their environment and deal with climate change and natural disasters.
- Finance Sector Development: A strong financial system helps a country's economy grow. It creates wealth that can help everyone, especially the poorest people. The ADB helps improve financial systems, including support for small businesses.
- Infrastructure: This includes building transportation (like roads), providing energy, ensuring clean water and sanitation, and developing cities. These are all important for economic growth.
- Regional Cooperation and Integration: This means helping countries in a region become more connected economically. It helps speed up economic growth, reduce poverty, and create more jobs.
- Private Sector Lending: The ADB also provides money directly to private companies. This helps projects that have clear benefits for society, not just financial profits.
How the ADB Provides Money
The ADB offers different types of loans. It gives "hard" loans with regular interest rates to middle-income countries. It also gives "soft" loans with lower interest rates to poorer countries. Since 2017, both types of loans come from the bank's main fund.
The ADB's Private Sector Department can also offer more than just loans. They can provide guarantees, which means they promise to pay if a company can't. They also offer equity, which means they invest directly in a company.
In 2017, the ADB lent $19.1 billion. About $3.2 billion of this went to private businesses. Including grants and other funding, the ADB's total operations in 2017 were $28.9 billion.
The ADB gets its money by selling bonds in the world's financial markets. It also gets money from member countries' contributions, profits from its lending, and repayments of old loans.
| Country | 2018 | 2017 | 2016 | 2015 | ||||
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| $ million | % | $ million | % | $ million | % | $ million | % | |
 China |
17,015 | 16.6 | 16,284 | 16.9 | 15,615 | 24.8 | 14,646 | 25.2 |
 India |
16,115 | 15.7 | 14,720 | 15.2 | 13,331 | 21.2 | 12,916 | 22.2 |
 Pakistan |
10,818 | 10.6 | 10,975 | 11.4 | 4,570 | 7.3 | 4,319 | 7.4 |
 Indonesia |
10,356 | 10.1 | 9,393 | 9.7 | 8,700 | 13.8 | 8,214 | 14.1 |
 Bangladesh |
9,169 | 8.9 | 8,685 | 9.0 | - | - | - | - |
 Philippines |
- | - | - | - | 5,935 | 9.4 | 5,525 | 9.5 |
| Others | 38,998 | 38.1 | 36,519 | 37.8 | 14,831 | 23.5 | 12,486 | 21.6 |
| Total | 102,470 | 100.0 | 96,577 | 100.0 | 62,983 | 100.0 | 58,106 | 100.0 |
Working with Others: Co-financing
The ADB often works with other organizations that help with development. They partner on projects to get even more money for them. In 2014, almost half of the ADB's operations, about $9.2 billion, were funded by other organizations. The bank talks with many other international groups to make this happen.
ADB's Funds and Resources
The ADB manages over 50 different funds and resources. These funds total billions of dollars each year. They are used for projects that help social and economic development in Asia and the Pacific. For example, in 2020, the ADB raised $118 million from bonds linked to the Indian rupee. This helped develop the India International Exchange.
ADB's 2022 Annual Report Highlights
The 2022 Annual Report shows how the ADB helped its member countries. It focused on recovering from the COVID-19 pandemic and dealing with new challenges. These challenges included the conflict in Ukraine and a serious food crisis. The ADB also made big promises to fight climate change, including $6.7 billion for climate projects. It also set aside $14 billion to help with food security.
In total, the ADB provided $20.5 billion in various types of help. This included money for private businesses. The report also mentioned that the ADB is working to be more effective. It has adopted a mix of working from home and in the office since its headquarters fully reopened.
Sharing Information
The ADB has a policy to share information with the public. This means that most information created by the bank should be available to everyone. This policy helps the ADB be open and responsible. It also means they respond quickly to requests for information. However, the ADB does not share information that could harm people's privacy or safety. It also keeps some financial and business information private.
Important Projects and Help from ADB
The ADB has supported many important projects in different countries:
- Afghanistan: A railway project from Hairatan to Mazar-e-Sharif.
- Armenia: A project to improve water supply and sanitation.
- Bhutan: A project to develop green energy.
- India: Programs to improve rural roads and city infrastructure in Agartala.
- Indonesia: A project to strengthen vocational education.
- Laos: Projects to improve water supply and sanitation in northern and central regions.
- Mongolia: A program to help with food and nutrition.
- Philippines: The North–South Commuter Railway Project, which is also funded by Japan.
- Solomon Islands: A project to help develop the private sector.
Countries with the Most Money and Votes
The table below shows the 20 countries that have put the most money into the Asian Development Bank. These countries also have the most voting power as of December 2021.
| Rank | Country | Subscribed capital (% of total) |
Voting power (% of total) |
|---|---|---|---|
| World | 100.000 | 100.000 | |
| 1 | Japan |
15.571 | 12.751 |
| 1 |  United States |
15.571 | 12.751 |
| 3 | China |
6.429 | 5.437 |
| 4 | India |
6.317 | 5.347 |
| 5 |  Australia |
5.773 | 4.913 |
| 6 | Indonesia |
5.434 | 4.641 |
| 7 |  Canada |
5.219 | 4.469 |
| 8 |  South Korea |
5.026 | 4.315 |
| 9 |  Germany |
4.316 | 3.747 |
| 10 |  Malaysia |
2.717 | 2.468 |
| 11 | Philippines |
2.377 | 2.196 |
| 12 |  France |
2.322 | 2.152 |
| 13 | Pakistan |
2.174 | 2.033 |
| 14 |  United Kingdom |
2.038 | 1.924 |
| 15 |  Italy |
1.803 | 1.737 |
| 16 |  New Zealand |
1.532 | 1.520 |
| 17 |  Thailand |
1.358 | 1.381 |
| 18 |  Taiwan |
1.087 | 1.164 |
| 19 |  Netherlands |
1.023 | 1.113 |
| 20 | Bangladesh |
1.019 | 1.109 |
| All Remaining Members | 10.894 | 22.832 |
ADB Members
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The ADB has 68 member countries as of March 23, 2019. Forty-nine of these members are from the Asian and Pacific Region. The other 19 members are from other parts of the world. The year next to each country's name shows when they joined the ADB. If a country stops being a member, the bank will buy back its shares.
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See Also
In Spanish: Banco Asiático de Desarrollo para niños
- African Development Bank
- Asian Clearing Union
- Asian Development Bank Institute (ADBI)
- Asian Infrastructure Investment Bank (AIIB)
- Asia Cooperation Dialogue
- Asia Council
- CAF – Development Bank of Latin America and the Caribbean
- Caribbean Development Bank
- Eurasian Development Bank
- Inter-American Development Bank
- International Monetary Fund
- South Asia Subregional Economic Cooperation
- World Bank
