Mr. Shixin Chen is the Vice-President (Operations 1) of the Asian Development Bank (ADB). Preparation App. Stefania Palma, Asia editor of The Banker, speaks with Takehiko Nakao, president of Asian Development Bank, during the 2016 ADB meeting held in Frankfurt, Ge. In August 2021, he was reelected for a 5-year term starting on 24 November 2021. The main functions of the Asian Development Bank include technical assistance, providing loans, and equality investments to boost economic and social development. He succeeded Takehiko Nakao on 17 January 2020,[12] who succeeded Haruhiko Kuroda in 2013. But the most important efforts in this direction must come, not from outside the region but from within. The ADB was modeled closely on the World Bank, and has a similar weighted voting system where votes are distributed in proportion with members' capital subscriptions. President Asakawa conveyed ADBs intention to provide $20 billion -$25 billion resources over 5 years to advance the countrys aspirations for fast, inclusive, and green growth. Fujioka Masao, the fourth president (198190), adopted an assertive leadership style, launching an ambitious plan to expand the ADB into a high-impact development agency. This document dated May 2008 is provided for the ADB project 39408-013 in Bangladesh. ADB encourages websites and blogs to link to its web pages. Statement delivered by Mr. Woochong Um, Managing Director General Asian Development Bank (ADB) - Read more about the ADB, its president, headquarters, etc. Although Japan was in the lead, it was still inconclusive, so a final vote was held after lunch. Speech of President Marcos on the Inauguration of Asian Development Bank Official Gazette of the Republic of the Philippines, Official Gazette of the Republic of the Philippines. The Board of Directors performs its duties full time at the ADB headquarters in Manila, Philippines. . They also discussed topics of common interest including climate finance, food security, gender, safeguards, and ADB capital adequacy. Along with this, one needs to practice the UPSC Previous Year Questions. In 2003, the severe acute respiratory syndrome (SARS) epidemic hit the region and ADB responded with programs to help the countries in the region work together to address infectious diseases, including avian influenza and HIV/AIDS. See: Rules of Procedure of the Board of Directors of ADB. He was instrumental in orchestrating a globally coordinated financial package to abate the financial crisis, including a $100 billion loan from Japan to the International Monetary Fund (IMF). Today, most of our countries, irrespective of our stages of development and political beliefs, are signatories to covenants and conventions under the United Nations which bind us to accord to workers the freedom of organization and collective bargaining and the protection of various labor laws. He noted that ADB has already taken several steps in this regard, for example by enhancing our climate ambition and revamping our operational model. The World Bank has given Southeast Asia only 5.3 per cent of all loans. The President congratulated Mongolia on its recent international bond issuance and measures taken to bolster international reserves. President of Asian Development Bank [ edit] On 2 December 2019, it was announced that Asakawa had been unanimously elected by Board of Governors of Asian Development Bank (ADB) as the 10th president of the Bank. Looking ahead, the race between agricultural output and population is assuming formidable dimensions. History of ADB. Question: Rapid Financing Instrument and Rapid Credit Facility are related to the provisions of which of lending by which of the following? Finance Minister Nirmala Sitharaman on Tuesday met Asian Development Bank (ADB) President Masatsugu Asakawa, and acknowledged the swift response and support provided by the institution to all its developing member countries, including India during the Covid-19 pandemic. He also noted that we are comprehensively reviewing options to further optimize ADBs balance sheet, and that we are engaging closely with the ADB Board on this matter. Based on a new policy, both types of loans will be sourced starting January 2017 from the bank's ordinary capital resources (OCR), which functions as its general operational fund.[33]. The opening of the ADB proves that the forces working for cooperation and fraternity between nations should never be underestimated. ADB has adopted a comprehensive reform road map, featuring a new operating model, to accelerate its transformation and more effectively serve the rapidly changing needs of its developing member countries in Asia and the Pacific. In the 1990s, ADB began promoting regional cooperation by helping the countries on the Mekong River to trade and work together. This is carried out through investments in the form of loans, grants and information sharing in infrastructure, health care services, financial and public administration systems, helping nations prepare for the impact of climate change or better manage their natural resources, as well as other areas. This event is a hopeful sign that once the energies of nations are directed towards peace and progress, the old narrow limits of possible attainment are soon surpassed. Activities News Speeches Videos Profile Real progress can only result from actions within the boundaries of Asia herself, and it is for us Asians to work together for our common good. What Is the Asian Development Bank? - Investopedia To decide, the 18 prospective regional members of the new bank held three rounds of votes at a ministerial conference in Manila in November/December 1965. Eighty percent of ADB's lending is concentrated public sector lending in five operational areas. In addition, $1 billion in loans and grants was provided to the victims of the October 2005 earthquake in Pakistan. Board of Directors | Asian Development Bank Who We Are ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. The bank will also help redress the imbalance in foreign exchange prevailing in most Asian countries estimated at from 600 million to one billion dollars. But the US did not warm to the plan and the concept was shelved. The questions concerning Asian Development Bank are asked both in UPSC Prelims and UPSC Mains, along with sometimes at the Interview stage also. (UPSC 2022). The Asian Development Bank (ADB) envisions a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty in the region. He was elected President by the Asian Development Banks Board of Governors. The UPSC Syllabus explicitly covers all the major financial institutions. Asian Development Bank UPSC [40] ADB has raised Rs 5 billion or around Rs 500 crores from its issuance of 5-year offshore Indian rupee (INR) linked bonds. The policy calls for accountability and transparency in operations and the timely response to requests for information and documents. Asian Development Bank has approved a 1.5 billion dollar loan to India to help fund its fight against the coronavirus pandemic. The major objectives of the Asian Development Bank are to achieve inclusive, prosperous, suitable and resilient Asia and the Pacific while reducing extreme poverty. [10], The highest policy-making body of the bank is the Board of Governors, composed of one representative from each member state. The president has a term of office lasting five years, and may be reelected. Takehiko Nakao is the President of the Asian Development Bank (ADB) and the Chairperson of ADB's Board of Directors. It plays a critical role in accelerating economic growth, reducing poverty and economic disparity, raising productivity and employment, and strengthening institutions. In a frank and engaging conversation with international broadcast journalist Zeinab Badawi, ADB President Masatsugu Asakawa offered his vision and ideas for change towards a better, greener, more sustainable, and resilient Asia and the Pacific. 1977 (reprinted 2010). It assists its members and partners by providing loans, technical assistance, grants, and equity investments to promote social and economic development. CNBC Transcript: Takehiko Nakao, President, Asian Development Bank March 26, 2018, 8:48 PM Following is the transcript of a CNBC interview with Takehiko Nakao, President of the Asian. In conclusion, may I say to the men behind this bank; congratulations and best wishes as you go forth on your historic mission of building a better life for the peoples of Asia. They also have the capability to provide guarantees, equity and mezzanine finance (a combination of debt and equity). About Asian Development Bank | Flickr The mobilization of outside capital for development of Asian economy makes the Bank a unique institution. Between 1989 and 1992 Asakawa was seconded by the Japanese Ministry of Finance to serve as an Executive Assistance to the fifth president of the Asian Development Bank, Kimimasa Tarumizu, in Manila. A brief history of the Asian Development Bank DevelopmentAid See full account in "Banking the Future of Asia and the Pacific: 50 Years of the Asian Development Bank," July 2017. In 1999, ADB adopted poverty reduction as its overarching goal.[18]. Progress is not merely a matter of advice and encouragement or external aid. He succeeded Takehiko Nakao on 17 January 2020, [12] who succeeded Haruhiko Kuroda in 2013. He was elected President by the Asian Development Bank's Board of Governors. [18], In mid-1997, ADB responded to the financial crisis that hit the region with projects designed to strengthen financial sectors and create social safety nets for the poor. I am aware that the Bank will, at this initial stage of its existence, have to face and solve some difficult problems, such as the formulation of policies concerning loans, investment, guarantees and other related problems, not to mention the problems of administration and appointing the right people to the right positions and getting them from as many member countries as possible. [6][7] In the first instance, Asakawa was expected to serve out the remainder of the five-term presidential term which Nakao began in November 2016. [18], In early 2012, the ADB began to re-engage with Myanmar in response to reforms initiated by the government. About ADB, how were organized, transparency, Projects, publications, products and services, operational priorities, and development knowledge, Countries with operations and subregional programs, country planning documents, Careers, business opportunities, and investor relations, President Asakawa, Canadian delegates discuss joint action on shared goals, President Asakawa, ADB Governor for Mongolia discuss development agenda and country partnership strategy priority areas, President Asakawa highlights ADBs ongoing evolution to address shared global challenges at G20 meeting, President Asakawa proposes up to $25 billion support to India's development priorities, President Asakawa calls for upholding integrity to embody ADB values at the International Anticorruption Day, Brunei, Indonesia, Malaysia, Philippines East ASEAN Growth Area (BIMP-EAGA), Central Asia Regional Economic Cooperation (CAREC) Program, Indonesia, Malaysia, Thailand Growth Triangle (IMT-GT), South Asia Subregional Economic Cooperation (SASEC), Civil Society/Non-government Organizations, $20 billion comprehensive response package, $9 billion Asia Pacific Vaccine Access Facility, ADBs 2030 cumulative climate financing ambition to $100 billion. At present, Asian Development Bank has 68 members, 49 are from within Asia and the Pacific and 19 are from outside. The economic development of the Western Nations of Japan took place under different historical conditions when capitalism was in its primitive and notorious stage and completely indifferent to the human wreckage that it left in its wake. Most notably, he served as Chief Advisor to ADB President Kimimasa Tarumizu between 1989 and 1992, during which time he spearheaded the creation of a new office focused on strategic planning. In the early 1990s, ADB moved its offices to Ortigas Center in Pasig City, with the Department of Foreign Affairs (Philippines) taking over its old Pasay premises. [18], Following considerable pressure from the Reagan Administration in the 1980s, ADB reluctantly began working with the private sector in an attempt to increase the impact of its development assistance to poor countries in Asia and the Pacific. But a new bank for Asia was soon seen to fit in with a broader program of assistance to Asia planned by United States President Lyndon B. Johnson in the wake of the escalating U.S. military support for the government of South Vietnam. 6 ADB Avenue, Mandaluyong City 1550, Metro Manila, Philippines. Sitharaman meets Asian Development Bank President, lauds support to [16], (*) As from 17 January 2020, Masatsugu Asakawa was president of ADB.[17]. Speech of President Marcos on the Inauguration of Asian Development Bank 20112016: Chair for Committee on Fiscal Affairs. Managing Director General Woochong Um, Private Sector Operations Department Director General Suzanne Gaboury, Sustainable Development and Climate Change Department Director General Bruno Carrasco, Strategy, Policy, and Partnerships Department Deputy Director General Vijay Padmanabhan, Department of Communications Principal Director Bernard Woods, and Assistant Secretary Harumi Kodama also joined the meeting. In his remarks, President Asakawa emphasized that multilateral development banks must continuously evolve and improve to meet the demands of our developing member countries. Watanabe later wrote in his personal history of ADB: "I felt as if the child I had so carefully reared had been taken away to a distant country." The regional Asian Development Bank members are: Afghanistan, Armenia, Australia, Azerbaijan, Bangladesh, Bhutan, Brunei Darussalam, Cambodia, Cook Islands, Federated States of Micronesia, Fiji, Georgia, Hong Kong, China, India, Indonesia, Japan, Kazakhstan, Kiribati, Kyrgyz Republic, Lao Peoples Democratic Republic, Malaysia, Maldives, Marshall Islands, Mongolia, Myanmar, Nauru, Nepal, New Zealand, Niue, Pakistan, Palau, Papua New Guinea, Peoples Republic of China, Philippines, Republic of Korea, Samoa, Singapore, Solomon Islands, Sri Lanka, Taipei, China, Tajikistan, Thailand, Timor-Leste, Tonga, Turkmenistan, Tuvalu, Uzbekistan, Vanuatu, and Viet Nam. The Governor and the accompanying Mongolia delegation also met with VP Ahmed Saeed and managers of ADB's East Asia and private sector departments, and public-private partnership office, during their two-day visit on 28 February and 1 March. ', https://en.wikipedia.org/w/index.php?title=Masatsugu_Asakawa&oldid=1141328419, 20002002: Regional Financial Cooperation Division, International Bureau, 20022004: International Tax Policy Division, Tax Bureau, 20042006: Foreign Exchange Markets Division, 20072008: Director for Co-ordination Division, International Bureau, 20092013: Deputy Vice Minister for International Affairs, 20122013: Senior Deputy Director-General, International Bureau and Executive Assistant to Deputy Prime Minister and Finance Minister, Ministry of Finance, 20132014: Deputy Vice Minister for Policy Planning and Co-ordination, 20142015: Director-General of the International Bureau. Keynote speech by ADB President Masatsugu Asakawa at the 2020 ADBI Annual Conference on The Impacts of the COVID-19 Pandemic and its Policy Implications. I have great hopes that the bank will be a most powerful influence in stimulating economic and social development in this region. [21], In 2009, ADB's Board of Governors agreed to triple ADB's capital base from $55 billion to $165 billion, giving it much-needed resources to respond to the global economic crisis. Jin Liqun Reelected President of AIIB - News - AIIB The Japanese and the. The Asian Development Bank (ADB) was founded on December 19, 1966, as a regional development bank under the leadership of Japan. Development finance in Asia: a memoir | Lowy Institute [18], In 2020, ADB gave a $2 million grant from the Asia Pacific Disaster Response Fund, to support the Armenian government in the fight against the spread of COVID-19 pandemic. We must at last face the truth that there is no choice for our countries except to cooperate. Asian Development Bank aims to promote social and economic development in Asia and the Pacific. The decade also saw an expansion of ADB's membership with the addition of several Central Asian countries following the end of the Cold War. In the meantime, he gave lectures as Visiting Professor at the Graduate School of Economic Science, Saitama University (20062009), and at the Graduate School of Arts and Sciences, University of Tokyo (20122015). China is 'committed to net zero,' head of top Asian development bank The main role of the Asian Development Bank is to support the projects of its member countries to make an economic impact, processed through public and private sector operations, and advisory services. Asian Development Bank UPSC: Members & President | ADB UPSC [43], Since the ADB's early days, critics have charged that the two major donors, Japan and the United States, have had extensive influence over lending, policy and staffing decisions. Traditionally, and because Japan is one of the largest shareholders of the bank, the president has always been Japanese. It would help you to prepare for the upcoming UPSC exam. The roles and functions of the Asian Development Bank are: Masatsugu Asakawa is the President of the Asian Development Bank and the Chairperson of ADBs Board of Directors. It is a recognition of the stability of our political structure, the soundness of our social and economic institutions and the ability of our people. The bank admits the members of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP, formerly the Economic Commission for Asia and the Far East or ECAFE) and non-regional developed countries. A brief history of the Asian Development Bank DevelopmentAid To pool together our resources for development is undoubtedly a great act of maturity and wisdom. In 2017, ADB lent $19.1 billion of which $3.2 billion went to private enterprises, as part of its "nonsovereign" operations. The per capita loans from the World Bank on a regional basis are $2.80 to Asia, $3.04 to Africa and $4.20 to Europe. Furthermore, he was a senior staff at the Fiscal Affairs Department of the IMF (19962000). Official Gazette of the Republic of the Philippines, 63(4), 791-795. Masatsugu Asakawa is the President of the Asian Development Bank (ADB) and the Chairperson of ADBs Board of Directors. She also appreciated the ADB's support to India's G20 Presidency priorities. However, that effort was never a true priority until the administration of President Tadeo Chino who in turn brought in a seasoned American banker Robert Bestani. The Asian Development Bank (ADB) was founded on December 19, 1966, as a regional development bank under the leadership of Japan. [5] The ADB is committed to achieving prosperous and sustainable Asia and the Pacific. That such can already be done in the worlds vastest and least homogenousregion, compliments the maturity and open-mindedness of the Asian nations. Article 31), The 12 Directors of the ADB Board of Directors are elected by the Board of Governors. An absolute delight to interact with young minds; eager, enthusiastic & bright. ADB responded to this with loans and grants that encouraged economic growth. The Government of India and the Asian Development Bank (ADB) signed a $112 million loan to develop water supply infrastructure and strengthen the capacities of urban local bodies (ULBs) for improved service delivery in four towns in the state of Jharkhand. Chen was World Bank's Executive Director for the PRC from 2013 to 2016 and a Board Director for the PRC in the New Development Bank and the Asian Infrastructure Investment Bank from 2016 to 2018. The current president is Masatsugu Asakawa. Finance Sector Development The financial system is the lifeline of a country's economy. On the Inauguration of Asian Development Bank, [Delivered in Makati, Rizal, December 19, 1966], THE ADB: CORNERSTONE OF A NEW LIFE A year later, Japanese Prime Minister Nobusuke Kishi announced that Japan intended to sponsor the establishment of a regional development fund with resources largely from Japan and other industrial countries. The Asian Development Bank (ADB) is a regional development bank established on 19 December 1966,[4] which is headquartered in the Ortigas Center located in the city of Mandaluyong, Metro Manila, Philippines. The President of ADB chairs the Board of Directors. Prior to joining ADB, he served as Special Advisor to Japans Prime Minister and Minister of Finance, and has a close-to-four decades career at the Ministry of Finance with diverse professional experience that cuts across both domestic and international fronts. Asakawa reelected as president of the Asian Development Bank That document formally stated that assistance to private sector development was the lead priority of the ADB and that it should constitute 50% of the bank's lending by 2020. While the crisis has various visible manifestations, what causes the most concern is the failure of agriculture to satisfy human needs. Implied in this is the renunciation of drastic methods of capital accumulation and formation which served the Western Industrial Revolution so well. Because of this, the Asian countries must turn to each other and to the developed countries of the West for the additional capital they need for their development. [7] The ADB-Japan Scholarship Program (ADB-JSP) enrolls about 300 students annually in academic institutions located in 10 countries within the Region. COMMITMENT AGAINST POVERTY, IGNORANCE AND DISEASE. As a key player in the concept, Japan hoped that the ADB offices would be in Tokyo. Born in the Shizuoka Prefecture of Japan, Asakawa attended Faculty of Economics, University of Tokyo, graduating with a BA in 1981. The President congratulated PM Modi for his leadership in handling the COVID-19 pandemic and on India's assumption of the G20 Presidency for 2023. In parallel, the concept was formally proposed at a trade conference organized by the Economic Commission for Asia and the Far East (ECAFE) in 1963 by a young Thai economist, Paul Sithi-Amnuai. The Asian Development Bank (ADB) is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. President Asakawa also expressed his strong support for the India's G20 presidencys focus on financing for sustainable cities, noting that the Asia and Pacific region will be home to 1 billion additional urban residents by 2050. President Masatsugu Asakawa on 28 February 2023 met with Mongolia's Minister of Finance and ADB Governor Javkhlan Bold in ADB headquarters. When Japan recalled president of the Asian Development Bank, Haruhiko Kuroda, to head up its central bank, it seems to have missed an opportunity to promote openness. He was elected President by ADBs Board of Governors and assumed office on 17 January 2020. Asakawa, who took office on 17 January 2020, is the 10th president of ADB. We know the ADB could rise today only because the ground had been well prepared for it during the past 18 years of the life of the ECAFE. The Asian Development Bank was modelled closely on the World Bank and has a similar weighted voting system where votes are distributed in proportion to members capital subscriptions. Asakawa has also worked in various positions in other international agencies. As I have told the Asian Labor Ministers Conference just ended in Manila, the Asian Nations today are in the position of being required to wage an industrial revolution without exploitation, no nation today is permitted to suspend human rights in deference to an urgent period of economic development. He is responsible for the organization, appointment and dismissal of the officers and staff in accordance with regulations adopted by the Board of Directors. Also, he had frequent engagement with the Organisation for Economic Co-operation and Development in such positions as Chair for Committee on Fiscal Affairs (20112016). Asian Development Bank UPSC ADB focused on improving roads and providing electricity. Allow me to congratulate the members of the board of directors. [9], As of 31 December 2020, Japan and the United States each holds the largest proportion of shares at 15.571%. In the immediate aftermath of the Global Financial Crisis, Mr. Asakawa, in his capacity as Executive Assistant to Prime Minister Taro Aso, took part in the first G20 Leaders Summit Meeting in November 2008. This is the foreign exchange gap involved in economic modernization and the raising of productivity. [6], After its creation in the 1960s, ADB focused much of its assistance on food production and rural development. Before these, he had occupied various prominent positions within the Finance Ministry, including director positions in charge of development policy issues, foreign exchange markets, and international tax policy. Asian Development Bank is a regional development bank, established in December 1966. ADB's participation is usually limited but it leverages a large amount of funds from commercial sources to finance these projects by holding no more than 25% of any given transaction.[38].