INTRODUCTION

The Asian Development Bank (ADB) is a regional development bank established in 1966 to promote economic and social development in Asian and Pacific countries through loans and technical assistance. It is a multilateral development financial institution owned by 67 members (as of 2 February 2007),[2] 48 from the region and 19 from other parts of the globe. ADB's vision is a region free of poverty. Its mission is to help its developing member countries reduce poverty and improve the quality of life of their citizens. Although recent economic growth in many member countries have led to a change in emphasis to some degree, throughout most of its history the bank has operated on a project basis, specifically in the areas of infrastructure investment, agricultural development and loans to basic industries in member countries. Although by definition the bank is a lender to governments and government entities, it also provides direct assistance to private enterprises and has also participated as a liquidity enhancer and best practice enabler in the private sectors of regional member countries. The ADB was founded in 1966 with the goal of eradicating poverty in the region. With over 1.9 billion people living on less than $2 a day in Asia, the institution has a formidable challenge. The primary human capital asset of the bank is its staff of professionals, encompassing academic and/or practical experts in the areas of agriculture, civil engineering, economics, environment, health, public policy and finance. Professional staff are drawn from its member countries and given various incentives to relocate to Manila. It is conceivable that once all of Asia-Pacific reaches a certain level of living standard the bank will be wound down or reconfigured to operate as a commercial enterprise.

Our Vision - an Asia and Pacific Free of Poverty

ADB is an international development finance institution whose mission is to help its developing member countries reduce poverty and improve the quality of life of their people. Headquartered in Manila, and established in 1966, ADB is owned and financed by its 67 members, of which 48 are from the region and 19 are from other parts of the globe. ADB's main partners are governments, the private sector, nongovernment organizations, development agencies, community-based organizations, and foundations. Under Strategy 2020, a long-term strategic framework adopted in 2008, ADB will follow three complementary strategic agendas: inclusive growth, environmentally sustainable growth, and regional integration. In pursuing its vision, ADB's main instruments comprise loans, technical assistance, grants, advice, and knowledge. Although most lending is in the public sector - and to governments - ADB also provides direct assistance to private enterprises of developing countries through equity investments, guarantees, and loans. In addition, its triple-A credit rating helps mobilize funds for development.

FUNCTION
It plays the following functions for countries in the Asia Pacific region:

Provides loans and equity investments to its developing member countries (DMCs) Provides technical assistance for the planning and execution of development projects and programs and for advisory services Promotes and facilitates investment of public and private capital for development Assists in coordinating development policies and plans of its DMCs to promote investment in the region of public and private capital for development purposes; to utilize the resources at its disposal for financing development of the developing member countries in the region, giving priority to those regional, sub-regional as well as national projects and programmes which will contribute most effectively to the harmonious economic growth of the region as a whole, and having special regard to the needs of the smaller or less developed member countries in the region; to meet requests from members in the region to assist them in the coordination of their development policies and plans with a view to achieving better utilization of their resources, making their economies more complementary, and promoting the orderly expansion of their foreign trade, in particular, intraregional trade; to provide technical assistance for the preparation, financing and execution of development projects and programmes, including the formulation of specific project proposals; to co-operate, in such manner as the Bank may deem appropriate, within the terms of this Agreement, with the United Nations, its organs and subsidiary bodies including, in particular, the Economic Commission for Asia and the Far East, and with public international organizations and other international institutions, as well as national entities whether public or private, which are concerned with the investment of development funds in the region, and to interest such institutions and entities in new opportunities for investment and assistance; and to undertake such other activities and provide such other services as may advance its purpose.

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Organization / Working
The highest policy-making body of the bank is the Board of Governors composed of one representative from each member state. The Board of Governors, in turn, elect among themselves the 12 members of the Board of Directors and their deputy. Eight of the 12 members come from regional (Asia-Pacific) members while the others come from non-regional members. The Board of Governors also elects the bank's President who is the chairperson of the Board of Directors and manages ADB. The president has a term of office lasting five years, and may be reelected. Traditionally, and because Japan is one of the largest shareholders of the bank, the President has always been Japanese. The current President is Haruhiko Kuroda. The headquarters of the bank is at 6 ADB Avenue, Mandaluyong City, Metro Manila, Philippines, and it has representative offices around the world. The bank employs approximately 2,400 people, coming from 55 of its 67 member countries, and with more than half of the staff being President: Haruhiko Kuroda Headquarters: Manila, Philippines Founded: 1966 Members: 67 Regional members: 48 Nonregional members: 19 Field offices: 30 Total employees: 2,600+ Nationalities employed: 55+ Total loans in 2009: $13.2 billion Total grants in 2009: $1.1 billion Technical assistance in 2009: $267.2 million

Management
The President is Chairperson of the Board of Directors, and under the Board's direction, conducts the business of ADB. He is responsible for the organization, appointment, and dismissal of the officers and staff in accordance with regulations adopted by the Board of Directors. The President is elected by the Board of Governors for a term of five years, and may be reelected. He is also the legal representative of ADB. On 17 April 2006, the Board of Directors approved the recommendation on the reassignment of the functions and duties of the operations vice presidents. The President has also approved the structure of the four realigned regional departments, effective 1 May 2006. The President now heads a management team comprising five Vice-Presidents and the Managing Director General, who supervise the work of ADB's operational, administrative, and knowledge departments.

NGOS SUPPORT
The Bank is working to establish closer ties with NGOs. Areas of cooperation include information sharing, practical assistance in developing and implementing programs and projects, and, where possible, co-financing. Other development agencies also benefit from such cooperation with NGOs. Participation in Bank activities helps NGOs expand their operations, in areas such as project preparation and implementation, community organization and social mobilization. Governments gain from cooperating with NGOs through better project planning and implementation. Above all, cooperation with NGOs benefits the poor and disadvantaged and helps support broad social concerns and environmental and natural resources protection and management. Some specific advantages of working with NGOs are: NGOs, with direct knowledge of local communities, can share expertise with the Bank and Governments in identifying, preparing, monitoring and evaluating development policies, programs and projects. NGOs can enhance public awareness of development. The ability of NGOs to gather and share information is particularly useful in identifying and avoiding potential problems. NGOs help the Bank and Governments prepare and implement specific programs and projects. This input is increasingly important as development efforts specifically include emphasis on poverty reduction and enhancing the role of women in development, and focus on concerns such as human resources development, population planning and environmental protection. For the Bank, NGO input is important in addressing specific concerns such as involuntary resettlement, protection of indigenous peoples, participation in development planning by beneficiaries and affected persons, and benefit monitoring and evaluation. NGOs can provide co-financing in the Bank's loan and technical assistance activities, whether by financing selected activities, or by providing resources in kind, such as consulting services, staff assistance or facilities and equipment.

Annual Meetings
What is it about Annual meetings are statutory occasions for Governors of ADB members to provide guidance on ADB administrative, financial, and operational directions. The meetings provide opportunities for member governments to interact with ADB staff, nongovernment organizations (NGOs), media, and representatives of observer countries, international organizations, academe and the private sector. When is it held Annual meetings are held in a member country in late April or early May. Who participates Participants include

finance and economic planning ministers senior government officials representatives of the multilateral development bank community investment bankers representatives of nongovernment organizations members of the media
2010 Meeting 2009 Meeting

Tashkent, Uzbekistan

Bali, Indonesia

2008 Meeting Madrid, Spain

2007 Meeting

Kyoto, Japan

2010 meeting was d 43rd ADB meeting

Membership
From 31 members at its establishment in 1966, ADB has grown to encompass 67 members - of which 48 are from within Asia and the Pacific and 19 outside. Some member countries enter a new phase in their relationship with ADB as defined under the Classification and Graduation Policy. Figures are as of 31 December 2008, before the fifth general capital increase process began. The process is ongoing, and the final figures are expected to be available by 31 December 2010. Current subscription levels are available from the Office of the Secretary. Georgia is the 67th and newest member, having joined ADB effective 2 February 2007.

Members
ADB has 67 members (as of 2 February 2007). Names are as recognized by ADB. The year after a member's name indicates the year of membership. The largest share holders of the ADB are Japan and USA, each holding 15.57% of the shares At the time a country ceases to be a member, the Bank shall arrange for the repurchase of such country's shares by the Bank as a part of the settlement of accounts with such country in accordance with the provisions of paragraphs 3 and 4 of this Article Republic of China (Taiwan) initially joined as "China" as a founding member representing the whole of China. However, its share of Bank capital was based on the size of Taiwan's capital, unlike the World Bank and IMF where the government in Taiwan had had a share representing the whole of China prior to the People's Republic of China joining and taking the Republic of China's seat. In 1986, a compromise was affected when the People's Republic of China joined the institution. The ROC was allowed to retain its membership, but under the name of Taipei, China a name it protests. Uniquely, this allows both sides of the Taiwan Straits to be represented at the institution.

Subscribed Capital Members Year of Number

Voting Power Percent of Totalb Percent of Regional/ Nonregional

Percent Number of Votes Totala

Membership of Shares of Regional Members Afghanistan Armenia Australia Azerbaijan Bangladesh Bhutan Brunei Darussalam Cambodia Republic of Cook Islands Fiji Islands Georgia Hong China India Indonesia Japan 1966 1966 1966 224,010 192,700 552,210 6.317 5.434 15.571 1976 1970 2007 Kong, 1969 94 2,406 12,081 19,270 0.003 0.068 0.341 0.543 1966 1,750 228,000 0.049 6.429 1966 2005 1966 1999 1973 1982 2006 1,195 10,557 204,740 15,736 36,128 220 12,462 0.034 0.298 5.773 0.444 1.019 0.006 0.351

14,427 23,789 217,972 28,968 49,360 13,452 25,694 14,982 241,232 13,326 15,638 25,313 32,502 237,242 205,932 565,442

0.325 0.537 4.917 0.653 1.114 0.303 0.580 0.338 5.442 0.301 0.353 0.571 0.733 5.352 4.646 12.756

0.5 0.825 7.56 1.005 1.712 0.467 0.891 0.52 8.367 0.462 0.542 0.878 1.127 8.229 7.143 19.612

China, People's 1986

Policies and Strategies

Strategy 2020: The Long-Term Strategic Framework of the Asian Development Bank 2008-2020, approved by ADB's Board of Directors on 7 April 2008, is the paramount ADB-wide strategic framework to guide all its operations to 2020. Strategy 2020 reaffirms both ADB's vision of an Asia and Pacific free of poverty [PDF] and its mission to help developing member countries improve the living conditions and quality of life of their people. Strategy 2020 identifies drivers of change that will be stressed in all its operations developing the private sector, encouraging good governance, supporting gender equity, helping developing countries gain knowledge, and expanding partnerships with other development institutions the private sector, and with community-based organizations. By 2012, 80% of ADB lending will be in five core operational areas, identified as comparative strengths of ADB:

Infrastructure, including transport and communications, energy, water supply and sanitation and urban development Environment Regional cooperation and integration Finance sector development Education

ADB will continue to operate in health, agriculture, and disaster and emergency assistance, but on a more selective basis. ADB has developed a corporate results framework [ PDF ] to assess its progress in implementing Strategy 2020. Annually, it will monitor implementation through the ADB Development Effectiveness Review. Key policy and strategy papers to supplement Strategy 2020 implementation on priority sectors and themes are listed on these pages.

Drivers of Change Core Operational Areas Other Operational Policies and Strategies

View the list of safeguard policies and sector or thematic strategies to be developed or reviewed over the next 12 months.

Effectiveness
Given ADB's annual lending volume, the return on investment in lesson learning for operational and developmental impact is likely to be high and maximizing it is a legitimate concern. All projects funded by ADB are evaluated to find out what results are being achieved, what improvements should be considered, and what is being learned. There are two types of evaluation: independent and self-evaluation. Self-evaluation is conducted by the units responsible for designing and implementing country strategies, programs, projects, or technical assistance activities. It comprises several instruments, including project/program performance reports, midterm review reports, technical assistance or project/program completion reports, and country portfolio reviews. All projects are self-evaluated by the relevant units in a project completion report. ADBs project completion reports are publicly disclosed on ADBs Internet site. Client governments are also required to prepare their own project completion reports. Independent evaluation is a foundation block of organizational learning: it is essential to transfer increased amounts of relevant and high-quality knowledge from experience into the hands of policy makers, designers, and implementers. ADBs Operations Evaluation Department (OED) conducts systematic and impartial assessment of policies, strategies, country programs, and projects, including their design, implementation, results, and associated business processes to determine their relevance, effectiveness, efficiency, and sustainability following prescribed methods and guidelines, It also validates self-evaluations. By this process of evaluation, ADB demonstrates three elements of good governance: (i) accountability, by assessing the effectiveness of ADB's operations; (ii) transparency, by independently reviewing operations and publicly reporting findings and recommendations; and (iii) improved performance, by helping ADB and its clients learn from past experience to enhance ongoing and future operations. Operations evaluation has changed from the beginnings of evaluation in ADB in 1978. Initially, the focus was on assessing after completion the extent to which projects had achieved their expected economic and social benefits. Operations evaluation now shapes decision making throughout the project cycle and in ADB as a whole. Since the establishment of its independence in 2004, OED reports directly to ADBs Board of Directors through the Board's Development Effectiveness Committee. Behavioral autonomy, avoidance of conflicts of interest, insulation from external influence, and organizational independence have made evaluation a dedicated toolgoverned by the principles of usefulness, credibility, transparency, and independencefor greater accountability and making development assistance work better. Independent Evaluation at the Asian Development Bank presents a perspective of evaluation in ADB

from the beginnings and looks to a future in which knowledge management plays an increasingly important roleIn recent years, there has been a major shift in the nature of OEDs work program from a dominance of evaluations of individual projects to one focusing on broader and more strategic studies. To select priority topics for evaluation studies, OED seeks input from the Development Effectiveness Committee, ADB Management, and the heads of ADB departments and offices. The current thrusts are to: (i) improve the quality of evaluations by using more robust methodologies; (iii) give priority to country/sector assistance program evaluations; (iv) increase the number of joint evaluations; (v) validate self-evaluations to shorten the learning cycle; (vi) conduct more rigorous impact evaluations; (vii) develop evaluation capacity, both in ADB and in DMCs; (viii) promote portfolio performance; (ix) evaluate business processes; and (x) disseminate findings and recommendations and ensure their use. OED's work program has also been reinterpreted to emphasize organizational learning in a more clearly defined results architecture and results framework. It entails (i) conducting and disseminating strategic evaluations (in consultation with stakeholders) (ii) harmonizing performance indicators and evaluation methodologies and (iii) developing capacity in evaluation and evaluative thinking. All evaluation studies are publicly disclosed on OED's website (some evaluations of private sector operations are redacted to protect commercially confidential information).[ OED's evaluation resources are displayed by resource type, topic, region and country, and date. Leanings are also gathered in an online Evaluation Information System offering a database of lessons, recommendations, and ADB Management responses to these Details of ongoing evaluations and updates on their progress are made public too. Beginning 2006, acting within the knowledge management framework of ADB, OED has applied knowledge management to lesson learning, using knowledge performance metrics. Learning Lessons in ADB sets the strategic framework for knowledge management in operations evaluationImprovements have been made that hold promise not only in OED but, more importantly, vis--vis its interfaces with other departments and offices in ADB, developing member countries, and the international evaluation community. In the medium term, OED will continue to improve the organizational culture, management system, business processes, information technology solutions, community of practice, and external relations and networking for lesson learning. Among the new knowledge products and services developed, Learning Curves are handy, two-paged quick references designed to feed findings and recommendations from evaluation to a broader range of clients Evaluation News report on events in monitoring and evaluation. Evaluation Presentations offer short photographic or PowerPoint displays on evaluation topics. Auditing the Lessons Architecture highlights the contribution that knowledge audits can make to organizational learning and organizational health. Of the 1,106 ADB-funded projects evaluated and rated so far (as of December 2007), 65% were assessed as being successful, 27% partly successful and 8% as unsuccessful

Criticism
Oxfam Australia has criticized the Asian Development Bank of insensitivity to local communities. "Operating at a global and international level, these banks can undermine people's human rights through projects that have detrimental outcomes for poor and marginalized communities The bank also received criticism from the United Nations Environmental Program, stating in a report that "much of the growth has bypassed more than 70 percent of its rural population, many of whom are directly dependent on natural resources for livelihoods and incomes There had been criticism that ADB's large scale projects cause social and environmental damage due to lack of oversight. One of the most controversial ADBrelated projects is Thailand's Mae Moh coal-fired power station. Environmental and human rights activists say ADB's environmental safeguards policy as well as policies for indigenous peoples and involuntary resettlement, while usually up to international standards on paper, are often ignored in practice, are too vague or weak to be affective, or are simply not enforced by bank officials. [23] [24] The bank has been criticized over its role and relevance in the food crisis.The ADB has been accused by civil society of ignoring warnings leading up the crisis and also contributing to it by pushing loan conditions that many say unfairly pressure governments to deregulate and privatize agriculture -- leading to problems such as the rice supply shortage in Southeast Asia. [25] The bank has also been criticized by Vietnam War veterans for funding projects in Laos, because of the United States' 15% stake in the bank, underwritten by taxes.[26] Laos became a communist country after the U.S. withdrew from Vietnam and the Laotian Civil War was won by the Pathet Lao, which is widely understood to have been supported by the North Vietnamese Army. In 2009, the bank endorsed a 2.9-billion-dollar funding strategy for proposed projects in India. The projects in this strategy were only indicative and still needed to be further approved by the bank's Board of Directors; however, PRC Foreign Ministry spokesman Qin Gang claimed, "The Asian Development Bank, regardless of the major concerns of China, approved the India Country Partnership strategy which involves the territorial dispute between China and India. China expresses its strong dissatisfaction over this... The bank's move not only seriously tarnishes its own name, but also undermines the interests of its members Though well-intentioned, ADB-funded operations have been responsible for causing widespread environmental and social damage, adversely affecting some of the regions poorest and most vulnerable communities Though publicly financed by taxpayer dollars, ADB activities in many cases, the elected officials in the borrowing countries. A global movement to reform the MDBs has based its activities on the assumption that sustainable development and poverty alleviation are impossible without informed public participation in the decision making process.

India's relationship with the Asian Development Bank

India and the Asian Development Bank have had a relationship since the 1966 when India was incorporated as a member of the ADB. India holds around 224,010 shares in the ADB and the percentage of votes that the country holds in ADB is 5.374%. India's Executive Director to the Asian Development Bank is Mr. Ashok K. Lahiri and the alternate Executive Director is Nima Wangdi. The Country Director of ADB for India is Tadashi Kondo. The Asian Development Bank has provided India with large amounts of loans in various sectors such as infrastructure, energy, financial, health, agriculture, and industry.

In the sector of trade and industry the loan provided amounts to US$ 185.90 million In the sector of nutrition, health, and social protection the loan provided amounts to US$ 20.00 million In the sector of energy the loan provided amounts to US$ 5,125.80 million In the sector of natural resources and agriculture the loan provided amounts to US$ 46.11 million In the sector of finance the loan provided amounts to US$ 2,460.00 million In the sector of communication and transportation the loan provided amounts to US$ 4,979.20 million In the sector of waste management, waste supply, and sanitation the loan provided amounts to US$ 501.20 million In the sector of economic management and law the loan provided amounts to US$ 850.00 million In the multi sector the loan provided amounts to US$ 2,280.00 million

The Asian Development Bank's future assistance to India

The Asian Development Bank has proposed to increase the amount of assistance to India from US$ 2.2 billion in 2002 to US$ 2.85 billion by 2009. This is sure to improve even more the relationship of India and the Asian Development Bank in the days to come.

LENDING
The Bank provides assistance in several ways. In addition to providing loans, it offers equity investments, loan guarantees, grants technical assistance. In 2005, the Asian Development Bank provided approximately $11.6 billion in lending and other assistance to its member countries. South Asia received the largest percentage of funding: 39% or $4.52 billion. Southeast and East & Central Asia received 33% ($3.8 billion) and 22% ($2.5 billion), respectively and the Pacific 1.4% (167 million) ADB's annual project lending amounts to about US$7 billion per year with typical lending per project being in the $100 million range.

Notable ADB projects and Technical Assistance

Afghan Diaspora Project Funding Utah State University led projects to bring labor skills in Thailand] Earthquake and Tsunami Emergency Support Project in Indonesia Greater Mekong Sub regional Program ROC Ping Hu Offshore Oil and Gas Development Strategic Private Sector Partnerships for Urban Poverty Reduction in the Philippines Trans-Afghanistan Gas Pipeline Feasibility Assessment Loan of $1.2 billion to bail it out of an impending economic crisis in Pakistan and on going funding for the countries growing energy needs, specifically Hydro-power projects Micro finance support for private enterprises, in conjunction with governments, including Pakistan and India. The Yichang-Wanzhou Railway project in the mountainous area of western Hubei Province and north-eastern Chongqing Municipality, China. (A US $500,000 loan, approved in 2003.)

SOME OF PROJECTS

Citarum Water Resources Management Investment Program

West Java, Indonesia US$7,765,000 million Asian Development Bank Active

Location Total Cost Funding Status

The Citarum River is one of the most critical river basins in Indonesia. Located in the province of West Java, the basin extends over 13,000 square kilometers, which provides home and life to over 10 million people. It supplies about 80 percent of metropolitan Jakartas water needs, irrigates over 240,000 hectares of rice and other agricultural crops, and is the source of 1,400 MW of hydroelectric power. This is the first ADB investment to Indonesia under the untested new lending instrument called Multitranche Financing Facility (MFF). The Indonesian public will incur a loan worth US$500 million disbursed over 15 years in various tranches

Nam Theun II Hydropower Project

Location Dates Status Lao PDR 2005 2009 Active

If built, the project would include a 50 meter high dam on the Theun River, a major Mekong Tributary, with an installed generating capacity of 1070 megawatts (MW). Water from the Theun would be stored in a 450 square kilometer reservoir on the Nakai Plateau and diverted to a powerhouse, before being discharged into another Mekong tributary, the Xe Bang Fai. Both the World Bank and the Asian Development Bank (ADB) are considering providing funding to this project.

Southern Transport Development Project

Problems include harsh resettlement practice, environmental degradation, and lack of participation and transparency Location Dates Status Sri Lanka 1999 2009 Active

The Southern Transport Development Project (STDP), approved in November 1999, involves the construction of a 128-km expressway linking linking Kottawa in the outskirts of Colombo with Matara in the south. The Asian Development Bank (ADB) has provided a loan of $90 million from the Asian Development Fund to finance the southern 61-km section from Kurundugahetekma to Matara, construction of which is currently on-going. Japan Bank for International Cooperation (JBIC) is financing the northern 67-km section from Ottawa to Kurundugahetekma with a loan of $120 million. The Government will finance the balance, originally estimated at $78.2 million but is expected to increase due to the trace change. The Government will finance the balance estimated at $78.2 million.