Term Paper on

“Asian Development Bank”

Course Tittle: International Trade

Course code: MGT 325
Submitted to:
Mohammad Maksudul Karim
Associate Professor
Department of Management Studies
Comilla University.
Submitted By:
Group 06
Name ID
01 Kamrun Nahar Poly (Leader) 11905054
02 Somaiya Akter 11905004
03 Fatema Toj Zohra 11905015
04 Nessar Uddin 11905038
05 Md. Majedul Haque 11905045

Submission Date: 15th November, 2022

Letter of Transmittal
1
15th November, 2022
To
Mohammad Maksudul Karim
Associate Professor
Department of Management Studies
Comilla University.

Subject: Submission of Term Paper on Asian Development Bank.

Sir,
With due respect, we are submitting the term paper on “Asian Development Bank” under
the Course “International Trade” as we were assigned. 
We tried to make the term paper as per your instructions. All the available data, information
and explanation have been included in this report to make it reliable, realistic, and
informative as much as possible. It was a great opportunity for us to work on this topic as it
helped us to enrich our knowledge about all of the functions, activities and other aspects of
Asian Development Bank. Particularly your discreet instructions and guidance has enriched
our work. If you face any inconvenience with the paper, please let us know so we can reform
it.
 
Sincerely,
On behalf of the team
Kamrun Nahar Poly
Department of Management Studies
Comilla University.

Table of Contents

2
Serial No Topics Page No

01 Introduction 04

02 Objectives of the Study 05

03 Literature Review 06

04 Methodology 08

05 Analysis 09

06 Lesson Learnt from the 17

Study

07 Recommendations 18

Conclusion
08 19

References
09 20

3
 Introduction
Financial Institutions are the building pillars of a country as they help in building and
stabilizing the economy and the market. One of such financial institution is The Asian
Development Bank (ADB).

The Asian Development Bank (ADB) is a regional development bank established on 19

December 1966, which is headquartered in the Ortigas Center located in the city of
Mandaluyong, Metro Manila, Philippines. The bank also maintains 31 field offices around the
world to promote social and economic development in Asia.

The Asian Development Bank's primary mission is to "foster economic growth and
cooperation" among countries in the Asia-Pacific Region. The ADB assists members and
partners by providing loans, technical assistance, grants, and equity investments to promote
social and economic development. From 31 members at its establishment in 1966, ADB has
grown to encompass 68 members—of which 49 are from within Asia and the Pacific and 19
outside.

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 Objectives of the Study
Primary Objective:

The main purpose of this report is to know how Asian Development Bank contribute to our
country, how they involved with other countries, how they help or provide loan through
SAARC particularly and so on.

Specific Objective:

From this term paper, we are able to know some aspects, which is -

 To know the activities of ADB bank.

 To know which sectors or fields they are contribute.
 To know what are their main purpose, functions, members, rules & regulations.
 To know how ADB bank helps their employees, through which they are benefited.
 To know which sectors, they are mainly focused.

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 Literature Review

According to Third World Quarterly 29 (4), 767-786, 2008

The Asian Development Bank (ADB) has made increasingly important contributions to Asia's
regionalism over recent years. This paper argues that the ADB's role here has become more
significant because of the strong ‘developmental’ characteristics of East Asia's new
regionalism. This is not least because, as a regional development bank, the ADB has a
predilection for linking development, regionalism and capacity-building together when
promoting regional co-operation and integration (RCI) in Asia. This paper may refer to this as
‘developmental regionalism’, where RCI activities are particularly orientated to enhancing the
economic capacity and prospects of less developed countries with the view of strengthening
their integration into the regional economy, and thereby bringing greater coherence to
regional community building overall. Thereafter, an evaluation is made of the ADB's
contributions toward the emerging developmental regionalism in East Asia.

Kelkar, Vedanti Seetha ram, K.E(976),2019

The paper shows that there are numerous socioeconomic and environmental benefits from
improved sanitation. Conversely, this paper has explored the lack of access to basic sanitation
and its negative impact on gross domestic product. ADB establishes the positive impacts on
GDP from investment in sanitation and emphasize how it can regenerate countries. ADB also
emphasizes decentralization, technological standardization, innovative financing and
potential of socio-economic spillover effects as tools to revive the sanitation sector.
According to the paper, ADB keeps contribution toward achieving total sanitation coverage in
developing Asian countries.

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Journal of the Asia Pacific Economy 15(4),20210

The paper shows that the research and analytical work undertaken in the recent years by
ADB's Economics and Research Department and other sources. According to this paper, the
Asian Development Bank has relatively few but well-founded and relevant studies, reports on
inclusive growth, inclusive development and social development. One of the findings is that
while there is no agreed and development, the term is understood to refer to ‘growth coupled
with equal opportunities, and consisting of economic, social and institutional dimension.

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 Methodology
Primary data: There is no available primary data in this regard.

Secondary data:

For the report we’ve picked out different articles and journals. We’ve chosen ADB’s annual
report and some other publications about ADB and also some relevant website of Wikipedia
to demonstrate their operations. We mostly used secondary data for this report. We also
collected our required data from their website and social media pages. Data mining and
getting appropriate data from some documentary was also so beneficial to us.

Analytical Part
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The Asian Development Bank (ADB) is committed to achieving a prosperous, inclusive,
resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme
poverty. It assists its members and partners by providing loans, technical assistance, grants,
and equity investments to promote social and economic development. ADB assists its
members, and partners, by providing loans, technical assistance, grants, and equity
investments to promote social and economic development.

ADB maximizes the development impact of its assistance by facilitating policy dialogues,
providing advisory services, and mobilizing financial resources through financing operations
that tap official, commercial, and export credit sources.

The Asian Development Bank (ADB) today approved $250 million in financing to strengthen
climate and disaster resilience in 22 coastal towns in Bangladesh.

“Bangladesh’s coastal towns are exposed to a range of climate and disaster risks, which are
expected to increase with climate change. ADB’s assistance supports the government’s Delta
Plan 2100 and Eighth Five-Year Plan to address climate risks in order to steer urban
development in resilient directions, and help the country achieve its commitments to the
Sustainable Development Goals,” said ADB Senior Urban Development Specialist for South
Asia Laxmi Sharma. “This project will improve climate and disaster resilience in 22 coastal
towns by enhancing municipal infrastructure and services that are critical for resilience
building, strengthening adaptive capacities, and raising awareness. “The ADB financing
includes $246 million in regular and concessional loans and a $4 million grant from the Asian
Development Fund. The Government of Bangladesh will contribute $60 million.

The project will develop infrastructure for building climate resilience in coastal towns,
including infrastructure to improve urban flood risk management such as stormwater
drainage, nature-based solutions, water body restoration, and integrated waste management.
The project will strengthen the knowledge and capacity of the Local Government
Engineering Department and the project towns in managing climate and disaster resilience.
They will be trained on nature-based and green solutions, gender equality and social
inclusion-responsive climate and disaster risk sensitive master planning, and information
technology-based remote monitoring them.

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As of 2021, ADB’s cumulative assistance to Bangladesh since 1973 amounted to about $48
billion through loans, grants, and financing. ADB’s active portfolio in the country stands at
around $11 billion with 50 projects as of April 2022. ADB is committed to achieving a
prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its
efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49
from the region.

Exports, remittances, and domestic consumption buoyed Bangladesh’s economy in fiscal year
2021 with gross domestic product rising to 6.9%, from 3.4% in the previous year. Growth in
both years was markedly lower than in the fiscal year 2019 and the average growth from
2016–2019 due to the impact of the coronavirus disease (COVID-19) pandemic.

The Asian Development Bank (ADB) is a key source of external assistance for Bangladesh,
providing $2 billion on average annually during 2016–2021. ADB’s assistance is aligned
with Bangladesh’s Eighth Five-Year Plan, 2021–2025 and the Perspective Plan, 2021-2041.

The first tranche ($400 million) of a corridor road project will help construct the 210-
kilometer Dhaka–Sylhet highway. An additional $13.5 million loan will scale up an ongoing
project to modernize irrigation and improve the management, operation, and maintenance of
large irrigation schemes. In 2021, ADB provided $9.6 million in grants and technical
assistance to Bangladesh for reforming social protection and public financial management
systems, capacity building for CMSEs, managing water resources and road safety and
maintenance, and strategic transport planning.

Non-sovereign operations. Total outstanding balances and undisbursed commitments of

ADB’s non-sovereign transactions in Bangladesh as of 31 December 2021 was $793.05
million representing 5.64% of ADB’s total private sector portfolio.

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Exhibit: Pump operator checks the outlets of the water irrigation in Bangladesh. Photo: Abir
Abdullah/ADB

COVID-19 Response: Bangladesh

ADB committed around $2.8 billion in loans, technical assistance, and trade finance and
microfinance programs in 2021, including $2.4 billion for tackling COVID-19. This included
a $940 million loan to support the national vaccination program.  A $250 million loan was
extended to improve the social protection system, and another $250 million loan was
committed to help reform the public financial management, and mobilize revenue system. A
$150 million loan will help provide financing for cottage, micro, and small enterprises to
create jobs for promoting socioeconomic recovery after the pandemic.

Financing Partnerships

Financing partnerships enable ADB’s partner governments or their agencies, multilateral

institutions, and private organizations to participate in ADB projects. The additional funds
may be in the form of loans and grants, technical assistance, and non-sovereign financing.

Cumulative financing commitments in Bangladesh:

 Sovereign financing: $11.67 billion for 71 investment projects and $96.5 million for
111 technical assistance projects since 1974
 Non-sovereign financing: $5.63 billion for 8 investment projects since 2001

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In 2021, Bangladesh received a total of $775.91 million loan financing from the Asian
Infrastructure Investment Bank, Export Import Bank of Korea, Japan International
Cooperation Agency, and OPEC Fund for International Development for 2 investment
projects, and $24.25 million grant financing from the Japan International Cooperation
Agency and United Nations Children’s Fund for 2 investment projects.

Future Directions

The ADB country partnership strategy (CPS) 2021–2025 for Bangladesh supports the country
in achieving its vision of promoting prosperity and fostering inclusiveness through three
strategic objectives—boosting competitiveness, employment, and private sector
development; promoting green growth and climate resilience. The CPS adopts knowledge-
driven multidisciplinary approaches with enhanced focus on climate change management.
Over 2022–2024, ADB has a pipeline of 40 firm projects worth $7.9 billion and 40 standby
projects worth $8.5 billion for Bangladesh. The technical assistance program includes 45
projects totaling about $40 million. In 2022, ADB will support sustainable and resilient
recovery from the COVID-19 pandemic with sharpened focus on health and social protection,
food security, skills development, rural development, water and sanitation, and the finance
sector, among others. Technical assistance will emphasize innovation and promote new
technologies.

Bangladesh and ADB: A Development Partnership

Located in the Ganges deltaic plain, and embraced by India and Myanmar on three sides and
the Bay of Bengal on the other, Bangladesh is considered highly calamitous, prone to natural
disasters like periodic floods and cyclones. With increasing resilience, Bangladesh has,
however, made impressive gains in macroeconomic management and social development
since the 1990s. During FY2009–FY2012, gross domestic product (GDP) growth ranged
between 5.7% and 6.7%, buoyed by strong export rebound in the garment sector (about 80%
of total exports), and a surge in overseas workers' remittances (11% of GDP in FY2012). The
emphasis by the Government of Bangladesh on female education and gender equity has led to
women's empowerment, enhancing women's economic and political roles. ADB support for
Bangladesh's development has mainly included lending for infrastructure and social sector

12
development, technical assistance (TA) for capacity development, and policy advice. At the
end of 2012, ADB had provided 234 loans totaling $14.2 billion, and 389 TA projects with a
total value of $228.4 million since the first loan approval of $3.2 million in 1973 for fisheries
development.2 Bangladesh is a major recipient of concessional Asian Development Fund
(ADF) resources.

MDG = Millennium Development Goal.

Sources: Bangladesh Bureau of Statistics; Asian Development Bank. 2013. Key Indicators for Asia and the
Pacific. Manila; Government of Bangladesh,2019.

Bangladesh Approvals and Disbursements of Loans and Technical Assistance Grants

Table 2: Loan Approvals ($ million)

Type of 1999-2016 2017 2018 2019 Total

loan
OCR Sovereign 1808 600 800 450 3668
ADF 8312 528 649 450 10297
OCR Non- 127 0 0 30 157
ADF Sovereign 11 0 0 0 11
Total 10258 1128 1449 930 14133

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Table-3: Loan Disbursements($million)

Types of 1999-2016 2017 2018 2019 Total

loan
OCR 621 718 185.27 124 1648.27
ADF 7350 283 358 287 8278
Total 7971 1001 543.27 411 9926.27

Development Outputs from ADB-Supported Projects in Bangladesh

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Education: Providing Skills and Empowerment

The education system in Bangladesh has been suffering from poor quality, high dropout rates,
and skills shortages. However, during the past few decades, Bangladesh has made good
progress in raising access to education, and teaching quality, and reforming the overall
education system. ADB assistance contributed to raising overall net enrollment in primary
education from 87.2% in 2005 to 98.7% in 2011. Pass rates in secondary school certificate
examinations improved from 52.6% in 2004 to 82.0% in 2011, and in higher secondary
certificate examinations from 47.7% in 2004 to 70.2% in 2011. In secondary school, cycle
completion increased significantly from 20% in 2005 to 38.6% in 2011. A study by the ADB
Independent Evaluation Department assessed ADB's performance in the overall education
sector as successful.4 ADB assistance in developing the education sector in Bangladesh

15
accounted for 9.32% of total ADB assistance to Bangladesh during 1973–2012, amounting to
$1.28 billion. ADB-assisted education projects have helped to modernize education by
increasing equity of access, enhancing quality, and improving policy, governance,
infrastructure, and service delivery. In the Second Primary Education Development Program,
one of the world's largest projects using a sector-wide approach, ADB was the lead
organization among 11 development partners. Building on the success of the project,5 in July
2011, ADB approved a follow-up loan for $320 million from ADF resources to finance the
Third Primary Education Development.

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ADB at a Glance

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and
the Pacific, while sustaining its efforts to eradicate extreme poverty. It has 68 members—of
which 49 are from Asia and the Pacific and 19 outside. ADB headquarters is in Manila,
Philippines and has 43 offices around the world, with 3,693 staff from 65 of its members as
of 31 December 2021. ADB maximizes the development impact of its assistance to its
developing members by providing financing and tailored knowledge solutions through policy
dialogue and advisory services, among others. It mobilizes financial resources through
financing from official, commercial, and export credit sources. ADB pivoted swiftly to
answer the needs of its developing members and will remain agile and responsive in the years
ahead. It has started to see the shoots of a green recovery, but the long-term effects of the
COVID-19 pandemic, climate change, and the outbreak of conflicts still threaten lives and
prosperity. ADB will continue to work closely with members and development partners
through these challenges to achieve a better future for all in Asia and the Pacific.

Lesson Learnt from the Study

1. We have learned about the function, its establishment and others activities of ADB.
2. We get information about how ADB contribute through SAARC in our country as
well as other countries.
3. We also get interesting hints about how ADB operate their transactions in the overall
Asian area including Bangladesh.
4. After completing the report on ADB know how the ADB provide loan, technical
assistance, grant and equity investment to promote social and economic development
in the SAARC including Bangladesh and other countries.
5. We also learn how ADB keep their work with more flexibility and contribute during
covid-19 pandemic situation.

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 Recommendations
A. A detailed recommendations while the evaluation identifies ways in which the Asian
Development Bank (ADB) can improve its support in the priority areas, four changes are
critical to raising its development effectiveness. These are offered for the consideration and
further discussion of ADB and the Asian Development Fund (ADF) donors. For ADF 12 and
beyond, ADB should:

(i) Strengthen support for inclusive growth and environmentally sustainable growth,
and scale up climate change adaptation and disaster risk management efforts.

Opportunities for making the growth process more inclusive need to be articulated and
supported in country partnership strategies (CPSs), their results frameworks, and their major
sector programs. Improved monitoring of ADB’s contributions to inclusive growth at the
country level is also needed. This would support the commitment made in the ADF XI
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Donors Report that inclusive growth be emphasized in all CPSs and effectively supported in
all ADF countries.

(ii) Adopt more systematic and operationally relevant diagnostic studies—a knowledge-
first approach—to sharpen country and sector programs and improve results on
strategic priorities.

A more systematic and better sequenced process for undertaking critical knowledge work in
advance of (and to feed into) the development of country strategies is needed. Analytical
work on the three strategic agendas is essential both to identify ways of spreading effort
across the pillars and priorities within each strategic area, and to tailor the generic strategies
to the needs and priorities of each country context.

B. Additional Suggestions from the Evaluation

I. To improve operational effectiveness and results

II. Pay closer attention to key design-related factors.
III. Anticipate and manage common implementation challenges
IV. Focus on project efficiency and sustainability.
V. Better identify and deploy highly effective project supervisors.

Conclusion
Between 1967 and the mid-1980s the ADB’s development policy for the rural sector, as
reflected in the two Asian agricultural surveys prepared by the Bank and the resulting policy
papers, underwent fundamental changes. The Bank’s initial policy of modernizing
agricultural production, mainly through investment in irrigation, agricultural inputs and seed
varieties, was thoroughly revised in the mid-1970s, leading to the emergence of a rural
development policy emphasizing that increasing production should be accompanied by
substantial measures to create employment and promote a more equal distribution of rural
incomes, and drawing some attention to the question of land reform. Within the broad
classification of rural development strategies suggested by Griffin, and to the extent that such
a classification for national policies can be applied to an international agency, the ADB
moved from a technocratic strategy to one with considerable elements of reformism. 1 The
policy change can largely be explained in the light of the 1972–4 food crisis and changes in

19
the rural development policies of the World Bank and the international donor community, and
received particularly strong endorsement from the Bank’s smaller donors and the Carter

administration in the US.

References
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Asanova, J., 2006. Emerging regions, persisting rhetoric of educational aid: The impact of the
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Boye, E. and Mannan, M.A., 2014. Bangladesh: Public-Private Partnership in Higher
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