ADB performs the following functions:
(i) Promote investment in the region of public and private capital for development purposes.
(ii) Provide loans for the economic and social development of the member countries of the region.
(iii) Help member countries in coordinating their development policies and plans.
ADVERTISEMENTS:
(iv) Provide technical assistance for the preparation, financing and execution of development projects and programmes.
(v) Undertake such other activities and provide such other services as may advance its objectives.
(vi) Provide financial and technical assistance to member countries for environmental protection.
(vii) Act as financial intermediary by transferring resources from global capital markets to developing countries.
ADVERTISEMENTS:
(viii) Support public resource mobilisation and management to member countries.
Funds
ADB was set up with an authorised capital of US$ one billion which was later on raised to $21.6 billion. Japan, India, China, USA, Canada and Germany are the main subscribers. The Bank has 45 members out of which 15 are from outside the region.
Management
ADVERTISEMENTS:
ADB is administered by a Board of Directors which is elected by the Board of Governors. The Board has 12 members of which 8 represent regional members and 4 represent non-regional members elected for two years’ term.
The Board of Directors normally meets once in a week and exercises all the powers. The president is elected by the Board of Governors for a term of five years.
Progress
ADB has invested considerably in agriculture, agro industry, energy, transport, communication, social infrastructure, etc. It provides equity finance and underwriting facilities.
ADVERTISEMENTS:
It has provided an assistance of more than 50 billion dollars since its beginning. The Bank has contributed significantly to economic development and living standards in Asia.
The ADB’s operational strategy for India is to ensure higher sustainable economic growth so as to reduce poverty and promote employment. The bank encourages private sector investment in India through an improved incentive framework.
It seeks to improve policy, institutional and regulatory framework so as to improve the efficiency of public sector undertakings. It provides support for resource mobilisation and management at the state level. ADB has given much importance to rural development in India.