Context: India’s COVID-19-battered economy will shrink by 9% this fiscal, the Asian Development Bank (ADB) predicted in its Asian Development Outlook 2020 Update.
- ADB forecasts a strong recovery for the economy in FY21, with gross domestic product growing by 8% as mobility and business activities resume more widely.
- India imposed strict lockdown measures to contain the spread of the pandemic and this has had a severe impact on economic activity.
What Is the Asian Development Bank?
- Founded in 1966, the Asian Development Bank's (ADB) headquarters are in Manila, Philippines.
- ADB is composed of 68 shareholding members, 49 of which are from the Asia and Pacific region and rest from outside the region.
- The Asian Development Bank's primary mission is to foster growth and cooperation among countries in the Asia-Pacific Region.
- It has been responsible for a number of major projects in the region and raises capital through the international bond markets.
- The ADB also relies on member contributions, retained earnings from lending, and the repayment of loans for funding of the organization.
- The two largest shareholders of the Asian Development Bank are the United States and Japan.
How the Asian Development Bank Works
- The Asian Development Bank provides assistance to its developing member countries, the private sector, and public-private partnerships through grants, loans, technical assistance, and equity investments to promote development.
Board of Governors
- ADB's highest policy-making body is the Board of Governors, which comprises one representative from each member nation – 48 from the Asia-Pacific and 19 from outside the region.
Board of Directors
- The Governors elect 12 members to form the Board of Directors, which performs its duties full time at the ADB headquarters.
South Asia Subregional Economic Cooperation
- India is also a member of the ADB's South Asia Subregional Economic Cooperation (SASEC) program.
- The South Asia Subregional Economic Cooperation (SASEC) program brings together Bangladesh, Bhutan, India, Maldives, Myanmar, Nepal, and Sri Lanka in a project-based partnership that aims to promote regional prosperity.
A long term strategy initiated by the Asian Development Bank to address the financial requirement of the Asian countries to deal with poverty.