The Asian Development Bank (ADB) is engaged in one of the most important areas of development of our time - the fight against poverty. It operates in a region of about 700 million people with incomes of less than $ 1 per day and 1.9 billion (more than a quarter of the world's population) with incomes of less than $ 2 per day.
Historical reference
ADB was conceived in the 60s as a financial institution that contributed to economic growth and interstate cooperation in one of the poorest regions of the world. The resolution adopted in 1963 at a special Conference of Ministers of neighboring countries brought dreams closer to reality.
The opening of the Asian Development Bank occurred on December 19, 1966. Initially, the main goal was to support agricultural areas. In the 60s, the organization concentrated most of its assistance in food production. Manila was chosen as the center for ADB. The first president was Takeshi Watanabe.
Asian Development Bank: the goal of creation
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 crucial 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 in the framework of certain projects and programs to reduce poverty and ensure economic growth;
- preparation of recommendations and analysis to the governments of member countries for use in improving policies, as well as 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 their transmission channels. To be effective, ADB works with various organizations and the general public.
To create strong and productive partnerships, he widely covers his 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 obtaining feedback from all stakeholders.
Structure
The Asian Development Bank is a multilateral organization whose shareholders are 67 participating countries, 48 from the region and 19 from other parts of the world. ADB's main tools for assisting its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance.
Financial activities
The Bank has significant savings for investment projects. If at the dawn of formation, he operated with amounts slightly more than $ 1 billion, then by the 80s the fund reached $ 10 billion. The organization met the XXI century with an impressive capital of $ 50 billion.
The structure of the activity is simple: rich borrowing governments replenish the ADB investment fund, which helps to implement development projects in poor regions. Lending conditions are very attractive when compared with the commercial financial market.
Statistics
In 2015, the volume of lending to the Asian Development Bank amounted to $ 15.45 billion (107 projects), the volume of technical assistance (TA) was $ 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 soft financing and commercial co-financing. Among them:
- Class B loans
- risk transfer mechanisms;
- co-financing of guarantees;
- parallel loans;
- parallel capital;
- co-financing operations under the ADB Trade Facilitation Program.
Between January 1, 2011 and December 31, 2015, ADB's annual lending amounted to an average of $ 12.93 billion. In addition, investment grants and TA financed by ADB and special fund resources averaged $ 580.66 million and $ 150. 23 million in TP for the same period.
In 2016, ADB operations reached an all-time high of $ 31.5 billion, an increase of 17% from 2015. Institutional loans and grants for sovereign and non-sovereign operations reached $ 17.5 billion (an increase of 9%), non-concession loans amounted to $ 14.4 billion. Concessional borrowing 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 being actively discussed while the country has observer status in the structure of the bank.
An obstacle to entry is the wary stance of ADB's major shareholders - Japan and the United States. However, a diplomatic breakthrough in dialogue with Japan and a change in the political and economic course of the new US administration bring the idea of Russia joining the bank structure as a donor country closer.
Membership will allow the Russian Federation to deepen cooperation with APEC member states. Investment programs in agriculture, support for private initiatives, assistance in the development of infrastructure projects are priority for the Asian Development Bank, and Russia just needs to co-finance these projects.
Activities in the CIS countries
ADB is actively collaborating with Central Asian countries: Tajikistan, Turkmenistan, the Kyrgyz Republic, Kazakhstan, and Uzbekistan. Kazakhstan has been cooperating with ADB since 1994. The bank allocated $ 4.4 billion for the country for projects in agriculture, irrigation, education, the financial sector, transport, water supply and sanitation. The total amount 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 highway in the Mangistau region, which should reduce the average travel time from 12 to 4 hours, is underway.
In 2015, ADB approved a loan of $ 1 billion to assist Kazakhstan in implementing 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 to modernize heat supply networks.
Since the beginning of cooperation, ADB has approved six projects for the private sector in Kazakhstan for a total funding of $ 455.2 million. By 2016, the total balance of debts and liabilities for operations in the private sector amounted to $ 66.64 million. In turn, Kazakhstan became a donor to the preferential Asian Fund development by investing $ 5.49 million in 2012.
Since 1996, the Asian Development Bank programs in such areas as transport, energy, water and sanitation, education and finance have had a significant impact on people's lives in Uzbekistan. Close working relations between ADB and the government in 2009 allowed the bank to double its resources invested in the republic. For example, the credit union program has helped to ensure an influx of money for the most needy and low-income households, as well as for small and micro enterprises. The Bank helped create a network of 100 credit unions, bringing together 141,000 members, with $ 88 million in deposits and $ 107 million in the loan portfolio.
Women in rural communities in Uzbekistan received money and acquired 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 later opened their own business.
Subtotals
Despite the transformation of Asia into the economic engine of the planet, the real situation is ambiguous. While the work of the Asian Development Bank has contributed to reducing extreme poverty by more than half, the region still has 1.2 billion people living on $ 3 a day, nearly 3/4 of the world's children are underweight. 600 million people lack electricity, 1.7 billion people do not use improved sanitation. ADB has an incredible amount of work to do for the sustainable development of the poorest parts of the world.