Editing Asian Development Bank (section)

==History==

===1960s===
As early as 1956, Japan Finance Minister [[Hisato Ichimada]] had suggested to [[United States Secretary of State]] [[John Foster Dulles]] that development projects in Southeast Asia could be supported by a new financial institution for the region. 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 the Future of Asia and the Pacific: 50 Years of the Asian Development Bank", July 2017.

The idea came up again late in 1962 when Kaoru Ohashi, an economist from a research institute in Tokyo, visited [[Takeshi Watanabe (bureaucrat)|Takeshi Watanabe]], then a private financial consultant in Tokyo, and proposed a study group to form a development bank for the Asian region. The group met regularly in 1963, examining various scenarios for setting up a new institution and drew on Watanabe's experiences with the [[World Bank]]. However, the idea received a cool reception from the World Bank itself and the study group became discouraged.

In parallel, the concept was formally proposed at a trade conference organized by the Economic Commission for Asia and the Far East (ECAFE) in 1963 by a young Thai economist, Paul Sithi-Amnuai. (ESCAP, United Nations Publication March 2007, "The first parliament of Asia" pp.&nbsp;65). 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. When Watanabe was recommended, the two streams proposing a new bank—from ECAFE and Japan—came together. 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 United States President [[Lyndon B. Johnson]] in the wake of the escalating U.S. military support for the government of [[South Vietnam]].

As a key player in the concept, Japan hoped that the ADB offices would be in Tokyo. However, eight other cities had also expressed an interest: [[Bangkok]], [[Colombo]], [[Kabul]], Kuala Lumpur, [[Manila]], [[Phnom Penh]], Singapore, and [[Tehran]]. To decide, the 18 prospective regional members of the new bank held three rounds of votes at a ministerial conference in Manila in November/December 1965. In the first round on 30 November, Tokyo failed to win a majority, so a second ballot was held the next day at noon. Although Japan was in the lead, it was still inconclusive, so a final vote was held after lunch. In the third poll, Tokyo gained eight votes to Manila's nine, with one abstention. 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: "I felt as if the child I had so carefully reared had been taken away to a distant country." (Asian Development Bank publication, "Towards a New Asia", 1977, p.&nbsp;16)

On 3 December 1965, Philippine President [[Diosdado Macapagal]] lays the foundation stone of the Asian Development Bank.

As intensive work took place during 1966 to prepare for the opening of the new bank in Manila, high on the agenda was choice of president. Japanese Prime Minister [[Eisaku Satō]] asked Watanabe to be a candidate. 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 1966.

By the end of 1972, Japan had contributed $173.7&nbsp;million (22.6% of the total) to the ordinary capital resources and $122.6&nbsp;million (59.6% of the total) to the special funds. In contrast, the United States contributed only $1.25&nbsp;million to the special fund.<ref name="Ming Wan" />

After its creation in the 1960s, 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.<ref name="admin">{{Cite web |title=ADB History |url=http://www.adb.org/about/history |access-date=2015-12-21 |publisher=Asian Development Bank |archive-date=29 January 2016 |archive-url=https://web.archive.org/web/20160129195803/http://www.adb.org/about/history |url-status=live }}</ref>

Early loans went largely to [[Indonesia]], [[Thailand]], [[Malaysia]], [[South Korea]] and the [[Philippines]]; these countries accounted for 78.48% of the total ADB loans between 1967 and 1972. Moreover, Japan received tangible benefits, 41.67% of the total procurements between 1967 and 1976. Japan tied its special funds contributions to its preferred sectors and regions and procurements of its goods and services, as reflected in its $100&nbsp;million donation for the Agricultural Special Fund in April 1968.<ref name="Ming Wan" />

Watanabe served as the first ADB president to 1972.<ref name="KapurLewis">{{Cite book |last1=Devesh Kapur |url=https://books.google.com/books?id=suOGRlBoPgQC&pg=PA304 |title=The World Bank: Perspectives |last2=John Prior Lewis |last3=Richard Charles Webb |date=2010-12-01 |publisher=Brookings Institution Press |isbn=978-0-8157-2014-0 |pages=304–}}</ref><ref name="Magill2014">{{Cite book |last=Frank N. Magill |url=https://books.google.com/books?id=ySJpAwAAQBAJ&pg=PA891 |title=Chron 20c Hist Bus Comer |date=23 April 2014 |publisher=Routledge |isbn=978-1-134-26462-9 |pages=891–}}</ref>

===1970s–1980s===
In the 1970s, ADB's assistance to developing countries in Asia expanded into education and health, and 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 its first [[price of oil|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.<ref name="admin" />

Following considerable pressure from the Reagan Administration in the 1980s, 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. In 1982, ADB opened its first field office, in [[Bangladesh]], and later in the decade, it expanded its work with non-government organizations (NGOs).<ref name="admin" />

Japanese presidents Inoue Shiro (1972–76) and Yoshida Taroichi (1976–81) took the spotlight in the 1970s. Fujioka Masao, the fourth president (1981–90), adopted an assertive leadership style, launching an ambitious plan to expand the ADB into a high-impact development agency.

On 18 November 1972, the Bank inaugurated its headquarters along [[Roxas Boulevard]] in [[Pasay City]], Philippines.  On 31 May 1991, ADB moved its offices to [[Ortigas Center]] in [[Pasig City]], with the [[Department of Foreign Affairs (Philippines)]] taking over its old Pasay premises.

===1990s===
In the 1990s, ADB began promoting regional cooperation by helping the countries on the 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.<ref name="admin" />

In mid-1997, 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. During the crisis, ADB approved its largest single loan – a $4&nbsp;billion emergency loan to South Korea. In 1999, ADB adopted poverty reduction as its overarching goal.<ref name="admin" />

===2000s===

The early 2000s saw a dramatic expansion of private sector finance. While the institution had such operations since the 1980s (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 in 2002, the ADB undertook a dramatic expansion of private sector lending under a new team. Over the course of the next six years, the Private Sector Operations Department (PSOD) grew by a factor of 41 times the 2001 levels of new financings and earnings for the ADB. This culminated with the Board's formal recognition of these achievements in March 2008, when the board of directors formally adopted the Long Term strategic Framework (LTSF). That document formally stated that assistance to private sector development was the lead priority of the ADB and that it should constitute 50% of the bank's lending by 2020.

In 2003, the [[severe acute respiratory syndrome]] (SARS) epidemic hit the region and ADB responded with programs to help the countries in the region work together to address infectious diseases, including [[avian influenza]] and HIV/AIDS. ADB also responded to a multitude of natural disasters in the region, committing more than $850&nbsp;million for recovery in areas of India, Indonesia, [[Maldives]], and Sri Lanka which were impacted by the [[2004 Indian Ocean earthquake and tsunami]]. In addition, $1&nbsp;billion in loans and grants was provided to the victims of the October 2005 earthquake in Pakistan.<ref name="admin" />

In December 2005, China donated $20&nbsp;million to the ADB for a regional poverty alleviation fund; China's first such fund set up at an international institution.<ref>{{Cite book |last=Zhao |first=Suisheng |url=https://www.worldcat.org/oclc/1332788951 |title=The dragon roars back : transformational leaders and dynamics of Chinese foreign policy |date=2023 |publisher=[[Stanford University Press]] |isbn=978-1-5036-3415-2 |location=Stanford, California |pages=70 |oclc=1332788951}}</ref>

In 2009, ADB's Board of Governors agreed to triple ADB's capital base from $55&nbsp;billion to $165&nbsp;billion, giving it much-needed resources to respond to the [[2008 financial crisis]]. The 200% increase is the largest in ADB's history, and was the first since 1994.<ref name="admin" />

===2010s===
Asia moved beyond the economic crisis and by 2010 had emerged as a new engine of global economic growth though it remained home to two-thirds of the world's poor. 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.<ref name="admin" />

In early 2012, the ADB began to re-engage with [[Myanmar]] in response to reforms initiated by the government. In April 2014, ADB opened an office in [[Myanmar]] and resumed making loans and grants to the country.<ref name="admin" />

In 2017, ADB combined the lending operations of its Asian Development Fund (ADF) with its ordinary capital resources (OCR). The result was to expand the OCR balance sheet to permit increasing annual lending and grants to $20&nbsp;billion by 2020 – 50% more than the previous level.<ref name="admin" />

In 2020, ADB gave a $2&nbsp;million grant from the Asia Pacific Disaster Response Fund, to support the Armenian government in the fight against the spread of [[COVID-19 pandemic]]. In the same year, the ADB committed a $20&nbsp;million loan to Electric Networks of Armenia, that will ensure electricity for the citizens during the pandemic, as well as approved $500,000 in regional technical assistance to procure personal protective equipment and other medical supplies.<ref name="ASIAN DEVELOPMENT BANK MEMBER FACT SHEET">{{cite web |title=Asian Development Bank |url=https://www.adb.org/sites/default/files/publication/27749/arm-2020.pdf |archive-url=https://ghostarchive.org/archive/20221009/https://www.adb.org/sites/default/files/publication/27749/arm-2020.pdf |archive-date=2022-10-09 |url-status=live |publisher=Asian Development Bank}}</ref>