Asian Development Bank (ADB): Mission, History & Impact

What Is the Asian Development Bank?

The Asian Development Bank's primary mission is to foster growth and cooperation among countries in the Asia-Pacific Region. Founded in 1966 and based in Manila, Philippines, the ADB assists members and partners by providing loans, technical assistance, grants, and equity investments to promote social and economic development.

The ADB has been responsible for major projects in the region and raises capital regularly through the international bond markets. The ADB also relies on member contributions, retained earnings from lending, and the repayment of loans for the funding of the organization.

Key Takeaways

• The Asian Development Bank's (ADB) primary mission is to promote economic growth and cooperation in the Asia-Pacific Region. 
• The majority of the ADB’s members are in the Asia-Pacific region.
• The ADB provides assistance to its developing member countries, the private sector, and public-private partnerships through grants, loans, technical assistance, and equity investments to promote development. 

How the Asian Development Bank Works

The Asian Development Bank provides assistance to its developing member countries, the private sector, and public-private partnerships through grants, loans, technical assistance, and equity investments to promote development. The ADB regularly facilitates policy dialogues and provides advisory services. They also use co-financing operations that tap official, commercial, and export credit sources while providing assistance.

Membership in the ADB is open to members and associate members of the United Nations Economic Commission for Asia and the Far East. It's also open to other regional countries and non-regional developed countries that are members of the U.N. or of any of its specialized agencies. 

Recent Initiatives

Since early 2020, the ADB has committed more than US$17.5 billion to help its developing member countries address the impacts of the 2020 crisis and address vaccination needs, and has mobilized a further $12.5 billion in co-financing from partners. Through a $9 billion Asia Pacific Vaccine Access Facility, or APVAX, announced in December 2020, the ADB is providing funding for vaccine procurement, logistics, and distribution.

ADB Members

From 31 members at its establishment in 1966, ADB has since grown to 68 members—of which 49 are from within Asia and the Pacific and 19 outside. Membership as of July 2021 includes:

ADB Regional Members Member Year of membership Afghanistan 1966 Armenia 2005 Australia 1966 Azerbaijan 1999 Bangladesh 1973 Bhutan 1982 Brunei Darussalam 2006 Cambodia 1966 Cook Islands 1976 Federated States of Micronesia 1990 Fiji 1970 Georgia 2007 Hong Kong, China 1969 India 1966 Indonesia 1966 Japan 1966 Kazakhstan 1994 Kiribati 1974 Kyrgyz Republic 1994 Lao People's Democratic Republic 1966 Malaysia 1966 Maldives 1978 Marshall Islands 1990 Mongolia 1991 Myanmar 1973 Nauru 1991 Nepal 1966 New Zealand 1966 Niue 2019 Pakistan 1966 Palau 2003 Papua New Guinea 1971 People's Republic of China 1986 Philippines 1966 Republic of Korea 1966 Samoa 1966 Singapore 1966 Solomon Islands 1973 Sri Lanka 1966 Taipei,China 1966 Tajikistan 1998 Thailand 1966 Timor-Leste 2002 Tonga 1972 Turkmenistan 2000 Tuvalu 1993 Uzbekistan 1995 Vanuatu 1981 Viet Nam 1966

ADB Non-Regional Members Member Year of membership Austria 1966 Belgium 1966 Canada 1966 Denmark 1966 Finland 1966 France 1970 Germany 1966 Ireland 2006 Italy 1966 Luxembourg 2003 Netherlands 1966 Norway 1966 Portugal 2002 Spain 1986 Sweden 1966 Switzerland 1967 Turkey 1991 United Kingdom 1966 United States 1966

Structure of the Asian Development Bank

The Agreement Establishing the Asian Development Bank, known as the ADB Charter, vests all the powers of the institution in the Board of Governors, which in turn delegates some of these powers to the Board of Directors. The Board of Governors meets formally once a year during ADB's Annual Meeting. The ADB's highest policy-making body is its Board of Governors, which comprises one representative from each member.

The two largest shareholders of the Asian Development Bank are the United States and Japan. Although the majority of the Bank's members are from the Asia-Pacific region, the industrialized nations are also well-represented. Regional development banks usually work in harmony with both the International Monetary Fund (IMF) and the World Bank in their activities.

The two largest shareholders of the Asian Development Bank are the United States and Japan.