Asian Development Bank
Encyclopedia
The Asian Development Bank (ADB) is a regional development bank
established on 22 August 1966 to facilitate economic development of countries in Asia. The bank admits the members of the United Nations Economic and Social Commission for Asia and the Pacific
(UNESCAP, formerly known as the United Nations Economic Commission for Asia and the Far East) and non-regional developed countries
. From 31 members at its establishment, ADB now has 67 members - of which 48 are from within Asia and the Pacific and 19 outside. ADB was modeled closely on the World Bank
, and has a similar weighted voting system where votes are distributed in proportion with member's capital subscriptions. At present, both the United States
and Japan
hold 552,210 shares, the largest proportion of shares at 12.756% each. China holds 228,000 shares (6.429 %), India
holds 224,010 shares (6.317 %), the 2nd and 3rd largest proportion of shares respectively.
The Board of Governors also elect 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, who succeeded Tadao Chino
in 2005.
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 Filipino
.
The ADB served Japan's economic interests because its loans went largely to Indonesia
, Thailand
, Malaysia, South Korea
and the Philippines
, the countries with which Japan had crucial trading ties; these nations accounted for 78.48% of the total ADB loans in 1967-72. Moreover, Japan received tangible benefits, 41.67% of the total procurements in 1967-76. Japan tied its special funds contributions to its preferred sectors and regions and procurements of its goods and services, as reflected in its $100 million donation for the Agricultural Special Fund in April 1968.
Takeshi Watanabe
served as the first ADB president from 1966 to 1972.
During this period there was a strong parallel institutional tie between the ADB and the Japanese Ministry of Finance, particularly the International Finance Bureau (IFB).
, Japanese manufacturers were pushed by high yen to move to Southeast Asia. The ADB played a role in channeling Japanese private capital to Asia by improving local infrastructure.
The ADB also committed itself to increasing loans for social issues such as education, health and population, urban development and environment, to 40 percent of its total loans from around 30 percent at the time.
In 2009, ADB obtained member-contributions for its Fifth General Capital Increase of 200%, in response to a call by G20 leaders to increase resources of multilateral development banks so as to support growth in developing countries amid the global financial crisis. For 2010 and 2011, a 200% GCI allows lending of $12.5-13.0 billion in 2010 and about $11.0 billion in 2011. With this increase, the bank's capital base has tripled from $55 billion to $165 billion.
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. ADB’s project completion reports are publicly disclosed on ADB’s 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. ADB’s Independent Evaluation Department (IED) 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, IED reports directly to ADB’s 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 tool—governed by the principles of usefulness, credibility, transparency, and independence—for 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 role.
In recent years, there has been a major shift in the nature of IED's 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, IED 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. IED'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 IED's website (some evaluations of private sector operations are redacted to protect commercially confidential information). IED's evaluation resources are displayed by resource type, topic, region and country, and date. Learnings 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, IED has applied knowledge management to lesson learning, using knowledge performance metrics.
Learning Lessons in ADB sets the strategic framework for knowledge management in operations evaluation. Improvements have been made that hold promise not only in IED but, more importantly, vis-à-vis its interfaces with other departments and offices in ADB, developing member countries, and the international evaluation community. In the medium term, IED 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.
and the United States
, have had extensive influence over lending, policy and staffing decisions.
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 ADB-related 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 effective, or are simply not enforced by bank officials.
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
.
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. 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 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."
launched Development Business
in 1978 with the support of the Asian Development Bank, the World Bank
, and many other major development banks from around the world. Today, Development Business
is the primary publication for all major multilateral development banks, United Nations agencies, and several national governments, many of whom have made the publication of their tenders and contracts in Development Business
a mandatory requirement.
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 effected 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.
Country
Date of Accession
Other regions: 19 members
Austria 1966
Belgium 1966
Canada 1966
Denmark 1966
Finland 1966
Germany 1966
Italy 1966
Netherlands 1966
Norway 1966
Sweden 1966
United Kingdom 1966
United States 1966
Switzerland 1967
Early Modern France 1970
Spain 1986
Turkey 1991
Azerbaijan 1999
Portugal 2002
Luxembourg 2003
Armenia 2005
Republic of Ireland 2006
Georgia (country) 2007
Multilateral Development Bank
A multilateral development bank is an institution, created by a group of countries, that provides financing and professional advising for the purpose of development. MDBs have large memberships including both developed donor countries and developing borrower countries...
established on 22 August 1966 to facilitate economic development of countries in Asia. The bank admits the members of the United Nations Economic and Social Commission for Asia and the Pacific
United Nations Economic and Social Commission for Asia and the Pacific
The Economic and Social Commission for Asia and the Pacific , located in Bangkok, Thailand, is the regional arm of the United Nations Secretariat for the Asian and Pacific region. It was established in 1947 to encourage economic cooperation among its member states...
(UNESCAP, formerly known as the United Nations Economic Commission for Asia and the Far East) and non-regional developed countries
Developed country
A developed country is a country that has a high level of development according to some criteria. Which criteria, and which countries are classified as being developed, is a contentious issue...
. From 31 members at its establishment, ADB now has 67 members - of which 48 are from within Asia and the Pacific and 19 outside. ADB was modeled closely on the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
, and has a similar weighted voting system where votes are distributed in proportion with member's capital subscriptions. At present, both the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
and Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
hold 552,210 shares, the largest proportion of shares at 12.756% each. China holds 228,000 shares (6.429 %), India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
holds 224,010 shares (6.317 %), the 2nd and 3rd largest proportion of shares respectively.
Organization
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 elect 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
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
is one of the largest shareholders of the bank, the President has always been Japanese. The current President is Haruhiko Kuroda, who succeeded Tadao Chino
Tadao Chino
was the President of the Asian Development Bank from January 16, 1999 to February 1, 2005. Like all presidents of that organization, he was Japanese.On July 18, 2008, Chino, 74, died in Tokyo, Japan, due to liver failure. He is survived by his wife and 2 daughters....
in 2005.
The headquarters of the bank is at 6 ADB Avenue, Mandaluyong City
Mandaluyong City
The City of Mandaluyong is one of the cities and municipalities that comprise Metro Manila in the Philippines. It is bordered on the west by the country's capital, Manila, to the north by San Juan City, to the east by Quezon City and Pasig City, and by Makati City to the south...
, Metro Manila
Metro Manila
Metropolitan Manila , the National Capital Region , or simply Metro Manila, is the metropolitan region encompassing the City of Manila and its surrounding areas in the Philippines...
, Philippines
Philippines
The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...
, 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 Filipino
Filipino people
The Filipino people or Filipinos are an Austronesian ethnic group native to the islands of the Philippines. There are about 92 million Filipinos in the Philippines, and about 11 million living outside the Philippines ....
.
1962-1972
ADB was originally conceived by some influential Japanese who formulated a "private plan" for a regional development bank in 1962, which was later endorsed by the government. The Japanese felt that its interest in Asia was not served by the World Bank and wanted to establish a bank in which Japan was institutionally advantaged. Once the ADB was founded in 1966, Japan took a prominent position in the bank; it received the presidency and some other crucial "reserve positions" such as the director of the administration department. By the end of 1972, Japan contributed $173.7 million (22.6% of the total) to the ordinary capital resources and $122.6 million (59.6% of the total) to the special funds. In contrast, the United States contributed only $1.25 million for the special fund.The ADB served Japan's economic interests because its loans went largely to Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
, Thailand
Thailand
Thailand , officially the Kingdom of Thailand , formerly known as Siam , is a country located at the centre of the Indochina peninsula and Southeast Asia. It is bordered to the north by Burma and Laos, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the...
, Malaysia, South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
and the Philippines
Philippines
The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...
, the countries with which Japan had crucial trading ties; these nations accounted for 78.48% of the total ADB loans in 1967-72. Moreover, Japan received tangible benefits, 41.67% of the total procurements in 1967-76. Japan tied its special funds contributions to its preferred sectors and regions and procurements of its goods and services, as reflected in its $100 million donation for the Agricultural Special Fund in April 1968.
Takeshi Watanabe
Takeshi Watanabe (bureaucrat)
was a Japanese bureaucrat and the first President of the Asian Development Bank .Watanabe was considered to be the “father” of ADB, as it was under his leadership that many of ADB’s policies and targets were established, the first bond was issued in the Federal Republic of Germany in 1969, and in...
served as the first ADB president from 1966 to 1972.
1972-1986
Japan's share of cumulative contributions increased from 30.4 percent in 1972 to 35.5 percent in 1981 and 41.9 percent in 1986. In addition, Japan was a crucial source of ADB borrowing, 29.4 percent (out of $6,729.1 million) in 1973-86, compared to 45.1 percent from Europe and 12.9 percent from the United States. Japanese presidents Inoue Shiro (1972–76) and Yoshida Taroichi (1976–81) took the spotlight. Fujioka Masao, the fourth president (1981–90), adopted an assertive leadership style. He announced an ambitious plan to expand the ADB into a high-impact development agency. His plan and banking philosophy led to increasing friction with the U.S. directors, with open criticism from the Americans at the 1985 annual meeting.During this period there was a strong parallel institutional tie between the ADB and the Japanese Ministry of Finance, particularly the International Finance Bureau (IFB).
Since 1986
Its share of cumulative contributions increased from 41.9 percent in 1986 to 50.0 per- cent in 1993. In addition, Japan has been a crucial lender to the ADB, 30.4 percent of the total in 1987-93, compared to 39.8 percent from Europe and 11.7 percent from the United States. However, different from the previous period, Japan has become more assertive since the mid 1980s. Japan's plan was to use the ADB as a conduit for recycling its huge surplus capital and a "catalyst" for attracting private Japanese capital to the region. After the 1985 Plaza AccordPlaza Accord
The Plaza Accord or Plaza Agreement was an agreement between the governments of France, West Germany, Japan, the United States, and the United Kingdom, to depreciate the U.S. dollar in relation to the Japanese yen and German Deutsche Mark by intervening in currency markets...
, Japanese manufacturers were pushed by high yen to move to Southeast Asia. The ADB played a role in channeling Japanese private capital to Asia by improving local infrastructure.
The ADB also committed itself to increasing loans for social issues such as education, health and population, urban development and environment, to 40 percent of its total loans from around 30 percent at the time.
Lending
The ADB offers "hard" loans from ordinary capital resources (OCR) on commercial terms, and the Asian Development Fund (ADF) affiliated with the ADB extends "soft" loans from special fund resources with concessional conditions. For OCR, members subscribe capital, including paid-in and callable elements, a 50 percent paid-in ratio for the initial subscription, 5 percent for the Third General Capital Increase (GCI) in 1983 and 2 percent for the Fourth General Capital Increase in 1994. The ADB borrows from international capital markets with its capital as guarantee.In 2009, ADB obtained member-contributions for its Fifth General Capital Increase of 200%, in response to a call by G20 leaders to increase resources of multilateral development banks so as to support growth in developing countries amid the global financial crisis. For 2010 and 2011, a 200% GCI allows lending of $12.5-13.0 billion in 2010 and about $11.0 billion in 2011. With this increase, the bank's capital base has tripled from $55 billion to $165 billion.
Notable projects and technical assistance
- Afghan Diaspora Project
- Funding Utah State UniversityUtah State UniversityUtah State University is a public university located in Logan, Utah. It is a land-grant and space-grant institution and is accredited by the Northwest Commission on Colleges and Universities....
led projects to bring labor skills in Thailand - Earthquake and Tsunami Emergency Support Project in Indonesia
- Greater Mekong Subregional Program
- ROC Ping Hu Offshore Oil and Gas Development
- Strategic Private Sector Partnerships for Urban Poverty Reduction in the Philippines
- Trans-Afghanistan Gas PipelineTrans-Afghanistan PipelineThe Trans-Afghanistan Pipeline is a proposed natural gas pipeline being developed by the Asian Development Bank. The pipeline will transport Caspian Sea natural gas from Turkmenistan through Afghanistan into Pakistan and then to India. The abbreviation comes from the first letters of those...
Feasibility Assessment - Loan of $1.2 billion to bail it out of an impending economic crisis in PakistanPakistanPakistan , officially the Islamic Republic of Pakistan is a sovereign state in South Asia. It has a coastline along the Arabian Sea and the Gulf of Oman in the south and is bordered by Afghanistan and Iran in the west, India in the east and China in the far northeast. In the north, Tajikistan...
and ongoing funding for the countries growing energy needs, specifically Hydro-power projects - Micro finance support for private enterprises, in conjunction with governments, including PakistanPakistanPakistan , officially the Islamic Republic of Pakistan is a sovereign state in South Asia. It has a coastline along the Arabian Sea and the Gulf of Oman in the south and is bordered by Afghanistan and Iran in the west, India in the east and China in the far northeast. In the north, Tajikistan...
and IndiaIndiaIndia , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
. - The Yichang-Wanzhou Railway project in the mountainous area of western HubeiHubei' Hupeh) is a province in Central China. The name of the province means "north of the lake", referring to its position north of Lake Dongting...
Province and north-eastern ChongqingChongqingChongqing is a major city in Southwest China and one of the five national central cities of China. Administratively, it is one of the PRC's four direct-controlled municipalities , and the only such municipality in inland China.The municipality was created on 14 March 1997, succeeding the...
Municipality, China. (A US $500,000 loan, approved in 2003.)
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. ADB’s project completion reports are publicly disclosed on ADB’s 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. ADB’s Independent Evaluation Department (IED) 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
Good governance
Good governance is an indeterminate term used in development literature to describe how public institutions conduct public affairs and manage public resources in order to guarantee the realization of human rights. Governance describes "the process of decision-making and the process by which...
: (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, IED reports directly to ADB’s 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 tool—governed by the principles of usefulness, credibility, transparency, and independence—for 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 role.
In recent years, there has been a major shift in the nature of IED's 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, IED 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. IED'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 IED's website (some evaluations of private sector operations are redacted to protect commercially confidential information). IED's evaluation resources are displayed by resource type, topic, region and country, and date. Learnings 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, IED has applied knowledge management to lesson learning, using knowledge performance metrics.
Learning Lessons in ADB sets the strategic framework for knowledge management in operations evaluation. Improvements have been made that hold promise not only in IED but, more importantly, vis-à-vis its interfaces with other departments and offices in ADB, developing member countries, and the international evaluation community. In the medium term, IED 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
Since the ADB's early days, critics have charged that the two major donors, JapanJapan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
and the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, have had extensive influence over lending, policy and staffing decisions.
Oxfam
Oxfam
Oxfam is an international confederation of 15 organizations working in 98 countries worldwide to find lasting solutions to poverty and related injustice around the world. In all Oxfam’s actions, the ultimate goal is to enable people to exercise their rights and manage their own lives...
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 ADB-related projects is Thailand
Thailand
Thailand , officially the Kingdom of Thailand , formerly known as Siam , is a country located at the centre of the Indochina peninsula and Southeast Asia. It is bordered to the north by Burma and Laos, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the...
's Mae Moh coal-fired power station
Coal-fired power station
A coal-fired power station produces electricity, usually for public consumption, by burning coal to boil water, producing steam which drives a steam turbine which turns an electrical generator...
. Environmental and human rights activists say ADB's environmental safeguards policy as well as policies for indigenous peoples
Indigenous peoples
Indigenous peoples are ethnic groups that are defined as indigenous according to one of the various definitions of the term, there is no universally accepted definition but most of which carry connotations of being the "original inhabitants" of a territory....
and involuntary resettlement, while usually up to international standards on paper, are often ignored in practice, are too vague or weak to be effective, or are simply not enforced by bank officials.
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
Southeast Asia
Southeast Asia, South-East Asia, South East Asia or Southeastern Asia is a subregion of Asia, consisting of the countries that are geographically south of China, east of India, west of New Guinea and north of Australia. The region lies on the intersection of geological plates, with heavy seismic...
.
The bank has also been criticized by Vietnam War
Vietnam War
The Vietnam War was a Cold War-era military conflict that occurred in Vietnam, Laos, and Cambodia from 1 November 1955 to the fall of Saigon on 30 April 1975. This war followed the First Indochina War and was fought between North Vietnam, supported by its communist allies, and the government of...
veterans
Vietnam veteran
Vietnam veteran is a phrase used to describe someone who served in the armed forces of participating countries during the Vietnam War.The term has been used to describe veterans who were in the armed forces of South Vietnam, the United States armed forces, and countries allied to them, whether or...
for funding projects in Laos, because of the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
' 15% stake in the bank, underwritten by taxes. Laos became a communist country after the U.S. withdrew from Vietnam, and the Laotian Civil War was won by the Pathet Lao
Pathet Lao
The Pathet Lao was a communist political movement and organization in Laos, formed in the mid-20th century. The group was ultimately successful in assuming political power after the Laotian Civil War. The Pathet Lao were always closely associated with Vietnamese communists...
, which is widely understood to have been supported by the North Vietnamese Army.
In 2009, the bank endorsed a $2.9 billion funding strategy for proposed projects in India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
. 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."
United Nations Development Business
The United NationsUnited Nations
The United Nations is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and achievement of world peace...
launched Development Business
Development Business
Development Business, also known as "United Nations Development Business", "UN Development Business", "UNDB" or "DB" is an online and print publication issued by the United Nations Department of Public Information...
in 1978 with the support of the Asian Development Bank, the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
, and many other major development banks from around the world. Today, Development Business
Development Business
Development Business, also known as "United Nations Development Business", "UN Development Business", "UNDB" or "DB" is an online and print publication issued by the United Nations Department of Public Information...
is the primary publication for all major multilateral development banks, United Nations agencies, and several national governments, many of whom have made the publication of their tenders and contracts in Development Business
Development Business
Development Business, also known as "United Nations Development Business", "UN Development Business", "UNDB" or "DB" is an online and print publication issued by the United Nations Department of Public Information...
a mandatory requirement.
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 effected 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.
| Country | Date of Accession |
|---|---|
| Asian and Pacific region: 48 members | |
 Afghanistan |
1966 |
 Australia |
1966 |
 Cambodia |
1966 |
 India |
1966 |
 Indonesia |
1966 |
 Japan |
1966 |
| 1966 | |
| 1966 | |
 Malaysia |
1966 |
 Nepal |
1966 |
 New Zealand |
1966 |
 Pakistan |
1966 |
 Philippines |
1966 |
 Samoa |
1966 |
 Singapore |
1966 |
 Sri Lanka |
1966 |
| 1966 | |
 Thailand |
1966 |
inherited |
1966 |
 Hong Kong |
1969 |
 Fiji |
1970 |
 Papua New Guinea |
1971 |
 Tonga |
1972 |
 Bangladesh |
1973 |
 Myanmar |
1973 |
 Solomon Islands |
1973 |
 Kiribati |
1974 |
 Cook Islands |
1976 |
 Maldives |
1978 |
 Vanuatu |
1981 |
 Bhutan |
1982 |
 People's Republic of China |
1986 |
 Marshall Islands |
1990 |
| 1990 | |
 Mongolia |
1991 |
 Nauru |
1991 |
 Tuvalu |
1993 |
 Kazakhstan |
1994 |
| 1994 | |
 Uzbekistan |
1995 |
 Tajikistan |
1998 |
 Turkmenistan |
2000 |
 East Timor |
2002 |
 Palau |
2003 |
 Brunei |
2006 |
Austria Belgium Canada Denmark Finland Germany Italy Netherlands Norway Sweden United Kingdom United States Switzerland Early Modern France Spain Turkey Azerbaijan Portugal Luxembourg Armenia Republic of Ireland Georgia (country) See also
- Asian Development Bank InstituteAsian Development Bank InstituteThe Asian Development Bank Institute is an Asian think tank focused on identifying effective development strategies for Asia and the Pacific, and on providing support to ADB member countries in managing development challenges. It was established in Tokyo in 1996 as a subsidiary of Asian...
(ADBI) - African Development BankAfrican Development BankThe African Development Bank Group is a development bank established in 1964 with the intention of promoting economic and social development in Africa...
- Asia Cooperation Dialogue
- Asian Clearing UnionAsian Clearing UnionThe Asian Clearing Union , with headquarters in Tehran, Iran, was established on December 9, 1974 at the initiative of the United Nations Economic and Social Commission for Asia and the Pacific...
- International Monetary FundInternational Monetary FundThe International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
- World BankWorld BankThe World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
External links
- Bank Information Center
- The ADB website: http://www.adb.org
- ADB Institute: http://www.adbi.org
- Inequality Worsens across Asia article discussing recent reports from the ADB from Dollars & SenseDollars & SenseDollars & Sense is a magazine dedicated to providing left-wing perspectives on economics.Published six times a year since 1974, it is edited by a collective of economists, journalists, and activists committed to the ideals of social justice and economic democracy.It was initially sponsored by the...
magazine, November/December 2007