- Recently, the Asian Development Bank (ADB) assured India of a $2.2-billion aid to fight the covid-19 pandemic.
- The World Bank had also approved a $1-billion assistance to help India prevent, detect and respond to the outbreak, and strengthen its public health preparedness.
Need for the aid: Weakening global economic growth is causing disruptions in India’s trade and manufacturing supply chains, along with the slowdown in tourism and other economic activities.
How will this help?
- ADB is assisting India to help alleviate the economic impact of the pandemic on the poor, informal workers, micro, small and medium-sized enterprises, and the financial sector.
- It includes emergency assistance, policy based loans, budget support to facilitate swift disbursement.
- ADB also appreciated Indian government’s decisive response to the pandemic, including a national health emergency programme, tax and other relief measures provided to businesses, and a ₹1.7 trillion economic relief package.
Asian Development Bank
- Established in 1966, its head office is located at Manilla, Philippines.
- It has 68 shareholding members, that includes 49 from the Asia and Pacific region.
- India is a founding member of the Asian Development Bank.
- This bank is designed on the lines of the world bank.
- Shareholders: Japan holds the largest share in ADB with 15.677%, followed by the U.S.A (15.567%), China (6.473%), and India (5.812%).
- Objective: Its purpose is to provide prosperity, inclusivity, resilience and sustainability to Asia and Pacific along with eradication of poverty.
- Strategy 2030 sets the course for the Asian Development Bank (ADB) to respond effectively to the region’s changing needs.
- Under Strategy 2030, ADB will sustain its efforts to eradicate extreme poverty and expand its vision to achieve a prosperous, inclusive, resilient, and sustainable Asia and the Pacific.
The World Bank Group is a unique global partnership working for sustainable solutions that reduce poverty and build shared prosperity in developing countries with 189 member countries.
- It works on issues ranging from climate change, conflict, and food security to education, agriculture, finance, and trade involving different stakeholders like nation-states, the private sector, civil society organizations, regional development banks, think tanks, and other international institutions.
- Together, the International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA) form the World Bank, which provides financing, policy advice, and technical assistance to governments of developing countries.
Mission of World Bank group
- To end extreme poverty:By reducing the share of the global population that lives in extreme poverty to 3 percent by 2030.
- To promote shared prosperity:By increasing the incomes of the poorest 40 percent of people in every country.
The organizations in the group are,
- International Bank for Reconstruction and Development (IBRD).
- International Development Association (IDA).
- International Finance Corporation (IFC).
- Multilateral Investment Guarantee Agency (MIGA).
- International Centre for Settlement of Investment Disputes (ICSID)
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