The company also maintains 31 field offices around the world  to promote social and economic development in Asia. The ADB was modeled closely on the World Bankand has a similar weighted voting system where votes are distributed in proportion with members' capital subscriptions.
ADB releases an annual report that summarizes its operations, budget and other materials for review by the public. Upon completion of their study programs, scholars are expected to contribute to the economic and social development of their home countries. As of 31 DecemberJapan and United States hold the largest proportion of shares at The highest policy-making body of the bank Asian development bank wikipedia the Board of Governors, composed of one representative from each member state.
The Board of Governors, in turn, elect among themselves the twelve members of the Board of Directors and their deputies. Eight of the twelve members come from regional Asia-Pacific members while the others come from non-regional members. 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 Takehiko Nakaowho succeeded Haruhiko Kuroda in The bank employs about Asian development bank wikipedia, people, representing 60 of its 67 members.
A year later, Japanese Prime Minister Nobusuke Kishi announced that Japan intended to sponsor the establishment of a regional development fund with resources largely from Japan and other industrial countries.
But the US did not warm to the plan and the concept was shelved. See full account in " Banking on Asian development bank wikipedia Future of Asia and the Pacific: The idea came up again late in when Kaoru Ohashi, an economist from a research institute in Tokyo, visited Takeshi Watanabethen a private financial consultant in Tokyo, and proposed a study group to form a development bank for the Asian region.
However, the idea received a cool reception from the World Bank itself and the study group became discouraged. Despite an initial mixed reaction, support for the establishment of a new bank soon grew. An expert group was convened to study the idea, with Japan invited to contribute to the group.
Initially, the US was on the fence, not opposing the idea but not ready to commit financial support. But a new bank for Asia was soon seen to fit in with a broader program of assistance to Asia planned by U. Johnson in the wake of the escalating US military support for the government of South Vietnam. In the first round on 30 November, Tokyo failed to win a majority, so a second ballet was Asian development bank wikipedia the next day at noon.
Although Japan was in the lead, it was still inconclusive, so a final vote was held after lunch.
Therefore, Manila was declared the host of the new development bank. The Japanese were mystified and deeply disappointed. Watanabe later wrote in his personal history of ADB: As intensive work took place during to prepare for the opening of the new bank Asian development bank wikipedia Manila, Asian development bank wikipedia on the agenda was choice of president. Although he initially declined, pressure came from other countries and Watanabe agreed.
In the absence of any other candidates, Watanabe was elected first President of the Asian Development Bank at its Inaugural Meeting on 24 November After its creation in the s, ADB focused much of its assistance on food production and rural development. At the time, Asia was one of the poorest regions in the world.
Early loans went largely to IndonesiaThailandMalaysiaSouth Korea and the Philippines ; these nations accounted for Moreover, Japan received tangible benefits, Watanabe served as the first ADB president to In the s, ADB's assistance to developing countries in Asia expanded into education and health, Asian development bank wikipedia then to infrastructure and industry.
The gradual emergence of Asian economies in the latter part of the decade spurred demand for better infrastructure to support economic growth.
ADB focused on improving roads and providing electricity. When the world suffered Asian development bank wikipedia first oil price shock, ADB shifted more of its assistance to support energy projects, especially those promoting the development of domestic energy sources in member countries. Following considerable pressure from the Reagan Administration in the s, ADB reluctantly began working with the private sector in an attempt to increase the impact of its development assistance to poor countries in Asia and the Pacific.
In the wake of the second oil crisis, ADB expanded its assistance to energy projects. InADB opened its first field office, in Bangladeshand later in the decade it expanded its work with non-government organizations NGOs. Japanese presidents Inoue Shiro —76 and Yoshida Taroichi —81 took the spotlight in the s.
Fujioka Masao, the fourth president —90adopted an assertive leadership style, launching an ambitious plan to expand the ADB into a high-impact development agency. In the s, ADB began promoting regional cooperation by helping the countries on Asian development bank wikipedia Mekong River to trade and work together.
The decade also saw an expansion of ADB's membership with the addition of several Central Asian countries following the end of the Cold War. In mid, ADB responded to the financial crisis that hit the region with projects designed to strengthen financial sectors and create social safety nets for the poor.
InADB adopted poverty reduction as its overarching goal. The early years of s saw a dramatic expansion of private sector finance. While the institution had such operations since the s under pressure from the Reagan Administration the early attempts were highly unsuccessful with low lending volumes, considerable losses and financial scandals associated with an entity named AFIC. However, beginning inthe ADB undertook a dramatic expansion of private sector lending under a new team. In addition, the increasing prosperity of many people in the region created a widening income gap that left many people behind.
ADB responded to this with loans and grants that encouraged economic growth. In earlythe ADB began to re-engage with Myanmar in response to reforms initiated by the government. The ADB defines itself as Asian development bank wikipedia social development organization that is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growthenvironmentally sustainable growthand regional integration.
This is carried out through investments — in the form of loans, grants and information sharing — in infrastructure, health care services, financial and public administration systems, helping nations prepare for the impact of climate change or better manage their natural resourcesas well as other areas. The ADB offers "hard" loans on commercial terms primarily to middle income countries in Asia and " soft" loans with lower interest rates to poorer countries in the region.
They also have the capability to provide guarantees, equity and mezzanine finance a combination of debt and Asian development bank wikipedia.
ADB obtains its funding by issuing bonds on the world's capital markets. It also relies on the contributions of member countries, retained earnings from lending Asian development bank wikipedia, and the repayment of loans.
ADB provides direct financial assistance, in the form of debt, equity and mezzanine finance to private sector companies, for projects that have clear social benefits beyond the financial rate of return. ADB partners with other development organizations on some projects to increase the amount of funding available. More than Asian development bank wikipedia financing partnership facilities, trust funds, and other funds — totalling several billion each year — are administered by ADB and put toward projects that promote social and economic development in Asia and the Pacific.
ADB has an information disclosure policy that presumes all information that is produced by the institution should be disclosed to the public unless there is a specific reason to keep it confidential.
The police calls for accountability and transparency in operations and the timely response to requests for information and documents.