Asian Development Bank (ADB) was established for poverty alleviation of Asia and Pacific. ADB has been driven by an inspiration and dedication for improving people's lives in this area. It is committed to help the member

CS Professional · International Business – Laws and Practices · PYQS · December 2017
Asian Development Bank (ADB) was established for poverty alleviation of Asia and Pacific. ADB has been driven by an inspiration and dedication for improving people's lives in this area. It is committed to help the member countries for improving its status by upgrading the standard of living of the people of the member countries. The main devices for its assistance are loans, grants, policy dialogue, technical assistance and equity investments. As one of the significant member of the ADB, evaluate its role in India's economic development.

Answer & Explanation:

India has been a founding member of the Asian Development Bank (ADB) since its establishment in 1966. Since the beginning of its lending operations in the country in 1986, ADB has partnered with India in its endeavor to reduce poverty through infrastructure lead growth. Over the years, ADB has aligned its India program with the government's increasing focus on inclusive and sustainable growth. While continuing its support for infrastructure development in the energy, transport and urban sectors, ADB is engaged in improving water resources management, agribusiness infrastructure development, promoting financial inclusion, and skills development. In line with the government's Finance Plus approach, ADB has been infusing innovations and regional best practices into project design and implementation. ADB has focused on strengthening its partnership with multilateral and bilateral development partners in India. In 2012, consultating and programming related meetings were held with several key partners. Such consultations help ADB in being more responsive to development needs besides being useful in identifying strategies and approaches that add value to its overall program in India. ADB's partnerships with civil society organizations aim to strengthen the effectiveness, quality, and sustainability of development efforts. Civil society organizations partnering in ADB operations provide a grassroots perspective on the design and implementation of projects, assist in community mobilization and resettlement, provide technical training, and conduct independent monitoring and evaluation. To supplement the government's efforts in reducing interstate disparities and promoting regionally balanced growth, ADB has expanded its operations in low income and special category states. ADB will continue to support the strategic goals of the government—faster, more inclusive, and sustainable growth—as emphasized in the 12th Five-Year Plan and reflected in ADB's country partnership strategy (CPS), 2013–2017 for India. India is ADB's fourth largest shareholder. Since launching its lending operations in India in 1986, ADB has approved 168 sovereign loans amounting to $27.2 billion. As of 31 December 2012, the portfolio included 78 ongoing sovereign loans amounting to $11.2 billion. ADB's sovereign lending assistance to India increased from an annual average of about $1.16 billion in 2000–2006 to $1.85 billion in 2007–2012. India has been ADB's largest borrower for the last 3 years (2010–2012). This Country Partnership Strategy (CPS), 2018–2022 for India aims to support the government's goal of faster, inclusive, and sustainable growth accompanied by rapid economic transformation and job creation. Asian Development Bank (ADB) assistance is articulated through the three strategic pillars of the CPS: boosting economic competitiveness to create more and better jobs, providing inclusive access to infrastructure networks and services, and addressing climate change and increasing climate resilience.

Topics: International Financial Institutions

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