Nepedia
Back to Discover
Advanced Reader
📖

Asian Development Bank

society Maturity 11-13 politics Next article →

This article covers sensitive topics: politics. Parents can manage visibility in Parental Controls.

The Asian Development Bank, known as the ADB, is a regional development bank. Its primary mission is to promote social and economic development throughout Asia. The organization is headquartered in Mandaluyong, located in Metro Manila, Philippines. It also maintains 31 field offices around the world to manage its work.

Asian Development Bank (DMC Stages)
Asian Development Bank (DMC Stages)

The ADB operates through a specific organizational structure. The highest policy-making body is the Board of Governors. This group consists of one representative from every member state. The Board of Governors elects twelve members to a board of directors. They also elect the bank's president, who manages the ADB. The president serves a five-year term and can be re-elected. Traditionally, the president has been Japanese because Japan is a major shareholder. The current president is Masato Kanda, who succeeded Masatsugu Asakawa in 2025.

Decision-making at the bank relies on a weighted voting system. In this system, votes are distributed based on capital subscriptions. This means members with more capital have more voting power. The bank distinguishes between two types of members. Regional members are located within the Asia-Pacific area. Non-regional members are primarily from Europe or North America. Regional members are the main beneficiaries of development projects. Non-regional members mostly contribute capital to the bank.

The history of the ADB began with several different ideas. In 1956, Japan's Finance Minister Hisato Ichimada suggested a new financial institution. Later, in 1962, an economist named Kaoru Ohashi proposed a study group. At the same time, a Thai economist named Paul Sithi-Amnuai proposed a bank at a trade conference. These separate ideas eventually came together. In 1965, the prospective members voted on where the headquarters should be. Tokyo and Manila were both candidates. Manila won the third round of voting by a single vote. The bank was officially established on December 19, 1966.

Membership in the ADB has grown significantly over time. The bank started with only 31 members at its founding. By 2019, the number of members had increased to 69. The bank employs approximately 3,000 people. As of late 2020, Japan and the United States held the largest shares. Each of these two countries held 15.571% of the shares. China held 6.429%, India held 6.317%, and Australia held 5.773%. These numbers show how much influence different nations have within the organization.

The goals of the ADB have shifted as the needs of Asia changed. In the early years, the bank focused on food production and rural development. Between 1967 and 1972, most loans went to Indonesia, Thailand, Malaysia, South Korea, and the Philippines. During the 1970s, the bank expanded into education, health, and infrastructure like roads and electricity. In 1999, the ADB adopted poverty reduction as its main goal. The bank also provides emergency support during crises. For example, it provided $1 billion in loans and grants after the 2005 Pakistan earthquake. It also committed over $850 million for recovery after the 2004 Indian Ocean tsunami.

Beyond large loans, the ADB invests in people through education. The ADB-Japan Scholarship Program (ADB-JSP) is a notable initiative. This program enrolls about 300 students every year in various academic institutions. These students study in 10 different countries within the region. After they finish their studies, scholars are expected to help their home countries grow. This connects the bank's financial work to the long-term social development of its members. The ADB also holds the status of an official United Nations Observer, linking it to global systems of cooperation.

591 words

Where will your curiosity go next?

Keep exploring at your chosen reading level.

🖼️ Images & Media (1)
File:Asian Development Bank (DMC Stages).png
Asian Development Bank (DMC Stages).png
More to explore

What is Nepedia?

A free, ad-free encyclopedia for children. Every article is written at five reading levels, so the same page works for a five-year-old and a fifteen-year-old — use the level switcher above to see this one change. No account needed to read.