asian-development-outlook-2020-th

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.

Analysis

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. 

Organisation

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.

Strategy 2030 

A long term strategy initiated by the Asian Development Bank to address the financial requirement of the Asian countries to deal with poverty.