While the global multilateral financial institutions have remained dominated by the western countries, the influence of Asian countries in these institutions is growing. Meanwhile, certain financial mechanisms have been built by the Asian Countries to support their economic development and to widen their choices for development financing.
Asian Development Bank (ADB)
Headquarters: Manila, Philippines.
Asian Development Bank (ADB) is a multilateral development bank dedicated to reducing poverty in Asia-Pacific. It was established in 1966, and is modeled closely on the World Bank. Asian Development Outlook, a key publication of the ADB, analyses key economic and development issues of the Asia-Pacific.
ADB’s largest shareholders are Japan (15%), USA (15%), EU, China, India (6%). China is the largest borrower, followed by India.
Regional Cooperation and Integration Initiatives of ADB
Since its inception, promoting regional partnerships has been a cornerstone of the policy of ADB. These regional partnerships include:
- Central Asia Regional Economic Cooperation Program (CAREC) is a development cooperation partnership of 11 countries – Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan, China, Mongolia, Afghanistan, Pakistan, Georgia, Azerbaijan.
- South Asia Subregional Economic Cooperation (SASEC) is a programme of ADB for project based partnership in 7 countries – India. Nepal, Bhutan, Bangladesh, Sri Lanka, Maldives and Myanmar.
- Greater Mekong Subregion (GMS) is a natural economic area comprising of region bounded by the Mekong river basin, including 6 countries – Myanmar, Thailand, Cambodia, Laos, Vietnam, China.
- Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) is a grouping of sub-national entities from the three countries.
- Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) is a cooperative initiative by the four countries for economic development of their territories lying in the Borneo region and Sulu-Sulawesi Marine Ecoregion.
Asian Infrastructure Investment Bank (AIIB)
Headquarters: Beijing, China.
AIIB is a multilateral development bank established in 2015 as an initiative of the government of China. Its largest shareholders are China (30%), India (9%), Russia (7%).
Japan and US are not members of the AIIB. They rather invest their money in the Asian Development Bank (ADB).
New Development Bank
Headquarters: Shanghai, China.
New Development Bank (NDB), formerly the BRICS Development Bank, is a multilateral development bank established by the 5 BRICS members with the Fortaleza Declaration 2014 made at the 6th BRICS Summit in Brazil.
BRICS members have equal shares in NDB, thence equal voting rights in the organisation. Currently each BRICS member has 20% voting power. However, 50% of the total shares are yet to be allocated; their allocation will further change the structure of shareholding and voting rights. Non-BRICS members too are allowed to be part of the New Development Bank.
India is one of the founding members in all of the three organisations – AIIB, ADB, NDB.
World Bank and the International Monetary Fund
European Investment Bank (EIB)
European Bank for Reconstruction and Development (EBRD)
AfDB – African Development Bank
CAF – Development Bank of Latin America