uxembourg has become animportant partner to the Asian Development Bank (ADB) through its pioneeringcofinancing for finance sectordevelopment and its commitmentto mitigating climate change.This is evident in the country’ssteady support for the FinancialSector Development PartnershipFund, established in 2006 tostrengthen financial systems in Asia and the Pacific. Luxembourgalso participates in the Asia PacificCarbon Fund, an innovative partof ADB’s ongoing Carbon MarketProgram, which has helpedstimulate much-needed fundingin the early stages of projectsmitigating greenhouse gases.In 2000, Luxembourg becamepart of a select group of countriesthat contribute at least 0.7% of gross national income to officialdevelopment assistance. Indeed,in 2009 and 2010, it providedmore than 1%, making it one of the world’s most generous donors.Luxembourg’s assistance helps ADB work toward the goals of
which enshrinesfinance sector developmentand environment as two of five core operational areas,alongside infrastructure, regionalcooperation and integration,and education.Responsibility forLuxembourg’s developmentcooperation rests with thecountry’s Ministry of Foreign Affairs, which manages 80%–85%of the country’s developmentassistance. The Ministry of Financemanages about 11% and handlescooperation with the internationalfinancial institutions, including ADB, with the balance managedby other ministries.The Luxembourg Agency for Development Cooperation(Lux-Development),established in 1978, is the mainimplementing agency for officialdevelopment assistance.Luxembourg focuses onprojects in the areas of agricultureand food security; education,training, and professionalinsertion; environment andclimate change; finance;governance; health; humanitarianaid; integrated local development;and water and sanitation.
See page 8 for priority countries in Asia and highlights of assistance.See tables, pages 10–11, forcofinancing with ADB.
Building Financial Systems
Support for the Financial SectorDevelopment Partnership Fundis perhaps the most definingfeature of Luxembourg’spartnership with ADB. Set upin 2006 as a multi-donor trustfund, Luxembourg made its sixthcontribution in January 2012, fora total of $7.85 million since theestablishment of the fund.The fund is helping Asiandeveloping countries create crucialelements of nascent financialsystems—in everything fromenhancing policy and regulatory environments to improvingaccess to financial services forthe poor—with investmentsof more than $3.4 million inCambodia, Indonesia, Mongolia,and Viet Nam, and in tworegional projects.
Lxmborg i in l grop of onri h onrib l 0.7% of gro nionl inom o offiil dvlopmn in