WELCOMETO

PRESENTATIONON “ASIAN DEVELOPMENT

BANK”

Presented byMd.Muklisur Rahman

Rubel

Shahjalal University of Science and Technology, Sylhet,

Bangladesh

Presentation OutlineHistorical background of ADBBasic information about ADBMembersDominated country of ADBVoting power distributionObjectivesVision & missionFunctions of ADBDivision and types of projectStructure of ADBBoard of governors: PowersBoard of directors: PowersWorking procedures of Board of directors PresidentCriticism

Presentation Outline

Historical Background of ADB

Idea

December 1963.

Consultative committee

Solomon Bandaranaike

1959

Formally broached FMCAEC

mid -1965 Draft charter of the ADB

November 1965

SMCAECadopted several resolution

Until 31 January 1966

Signature period

Agreement of Establishing the ADB

About ADB

The ADB is a Multilateral Development Bank (MDB).Motto: fighting poverty in Asia and the Pacific.Formation: 22 August 1966.Type: Regional organization.Legal Status: Treaty.Purpose/focus: Crediting.Headquarters: Mandaluyong city, Metro Manila, Philippines.Region served: Asia-Pacific.Membership: 67 Countries.President: Haruhiko Kuroda.Main organ: Board of Directors.Staff: 2500+.

Members: Establish with 31 members.

At present 67 members. 48 are from within Asia and the Pacific. 19 from outside. Bangladesh signed ADB in 1973 after the liberation war.

Dominants countries of ADB

US &

Japan13%

China6%

India6%

Others74%

Voting Power

45%

55%

borrowing countries,

The main objectives of ADB are as follows:-To foster economic growth.-To cooperate member countries.-To accelerate the process of economic development.-To make Asia and Pacific free from poverty.

• Objectives:

Vision & Mission of ADB

• Vision • Mission• An Asia and

Pacific region free of poverty

• To help our developing member countries reduce poverty, and improve living conditions and quality of life

ADB’s principal functions - Lending funds.-Advisory services.- Promoting investments for development purposes.- Assisting in coordinating DMCs’ development policies and plans.-Provides loans for the economics and social development.-Help MC’s in coordinating their development policies and plans.-Provide financial and technical assistance to member countries for environmental protection. -Act as financial intermediary by transferring resources from global capital markets to developing countries.-Support public resource mobilization and management to member countries.

Division and Types of projectsDivision Types of projects

Infrastructure Roads; hydropower plants; power transmission facilities

Agriculture, Environment, and Natural Resources

Irrigation; agriculture, livestock and fisheries for export

Social Sectors Health and education projects

Governance, Finance and Trade

Financial sector reforms promoting greater market liberalization

Structure of ADB Board of Governors

Board of Directors

President

•Evaluation•Compliance Review

Managing Director General

•Strategy & Policy

•Regional Economic

Integration•SpecialProject

Facilitator•Risk

Management•ExternalRelations

•Audit

Vice PresidentKnowledge

Management

•Regional&SustainableDevelopment•Economic &Research•Cofinance

Vice President

Operation 1

•South Asia•Central &West Asia•PrivateSector

Vice PresidentOperation 2

•SoutheastAsia•Pacific•CentralOperationsService

Vice PresidentFinance

Administration

•Secretary•GeneralCounsel•Budget

PersonnelManagement

System•Administration

Service•Controller•Treasury

•IT

Power of board of governorsAdmission of new members and the conditions of such admissionIncrease /Decrease of the Bank’s authorized capitalSuspension of a membershipDecision of any appeal against the decision of Board of Directors regarding interpretation of the CharterFinal decision of any agreement with other international institutionsElection of the President and Directors of the BankDetermination of remuneration/salary and other terms of contract of services of the President, Directors and the alternatesReview and approval of the audit report, balance sheet, and profit/loss of the Bank.Determination of reserves and net profit distributionAmendment of this Charter

Powers of the Board of Directors

Preparation of the working paper for the Board of GovernorsMaking decisions in accordance with the guide lines of the Board of Governors regarding loans,assistance and other functions of the bank.Submission of yearly accounts to the Board of Governors for approval in each AGMApproval of the annual budget of the Bank

Working Procedure of the Board of Directors

The Board of Directors normally carries out its duties staying at the head quarters and meets time to time as demanded by normal activities of the Bank.

A majority of members, at least two third of the total voters, fulfills the quorum for a meeting of the Board.The Board of Governors may approve a regulation to allow a member for sending a representative to the meeting of the Board of Directors who has no representation in the board. Such representative won’t have voting power.

The President

Elected by the Board of GovernorsTerm is five years.As a President takes up his/her office, can’t remain a governor or a Director or an alternate of any of them.After completion of term a President may be re-elected.The President is the Chairperson of the Board of Directors without any voting power except deciding vote.From legal point of view the President represents the Bank.

CriticismThey suggest some rules and regulation for expend money.It interferes in the policy of subscriber’s country.The voting power of ADB is share based.It affects the internal system of subscriber’s country.It serves the purpose of capitalism.ADB plays a dominating role in developing countries like Bangladesh.In most cases it is similar to IMF and World Bank. It follows the systems of World Bank to provide lone.The ADB President has always been from Japan.Representation in the board determined by the financial contribution to the ADB.

Thank youFor staying with us

Allah Hafez