Why in News?
The Asian Development Bank (ADB) is in the news because it is recently holding its 59th Annual Meeting in Samarkand, Uzbekistan (May 3–6, 2026). The bank has used this high-profile event to launch major financial initiatives aimed at regional connectivity, clean energy, and climate resilience.
Identity
- Established: 1966.
- Headquarters: Manila, Philippines.
- Primary Goal: To foster a prosperous, inclusive, resilient, and sustainable Asia-Pacific while eradicating extreme poverty.
- Membership: 69 members (49 from within the Asia-Pacific region and 19 from outside).
Ownership & Voting Power
The ADB is modelled after the World Bank, where voting power is proportional to the capital contributed:
- Japan & USA: Largest shareholders (approx. 15.6% each).
- China: 6.4%.
- India: 6.3% (India is a founding member and the 4th largest shareholder).
How it Works?
- Financial Assistance: Provides loans, technical assistance, grants, and equity investments to both governments (sovereign) and the private sector.
- Credit Rating: Maintains a AAA bond credit rating, allowing it to raise funds in global capital markets at low costs.
- Sectors Covered: Transport, energy, health, education, financial systems, and disaster management.
ADB and India
- Strategic Partner: ADB is one of India's largest development partners, focusing on infrastructure and climate-resilient growth.
- Recent Funding: In 2024, the ADB committed $4.25 billion for 21 projects in India, with over 60% dedicated to climate mitigation and adaptation.
- Key Projects: Ongoing support for the Chennai Metro expansion, universal health coverage in Mizoram, and flood management along the Brahmaputra in Assam.
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