The ADB doles out millions for regional development
November 26th, 2008 - by Nazia Vasi
On Monday the IMF released a report stating that with the global financial crisis taking an increasing toll on Asian economies, many countries should consider monetary and fiscal stimulus in addition to measures to protect local financial systems. Supporting the IMF statement, the Asian Development Bank recently announced loans of US$70 million to India, US$1 million to the Philippines, US$300 million to China, US$ 10 million to Mongolia and US$700 million to Kazakhstan.
India will use the loan to start a Bus Rapid Transit System (BRTS) in the state of Maharashtra, the Philippines will upgrade irrigation facilities, while China will use the loan for a railway line that will connect western China with the south. The grant to Mongolia will be used to buy textbooks for poor children and the loan to Kazakhstan will help complete a highway project that traces the ancient Silk Road trading route.
The ADB set up in 1966 is financed through its 67 members. The main aid instruments of the ADB include loans, technical assistance, grants, advice, and knowledge. While a majority of the loans cater to the public sector, the ADB also lends to the private sector through equity investments, guarantees, and loans. According to their strategy by 2012 the regional bank has decided to focus 80 percent of its loans towards infrastructure, inclusive growth, environmentally sustainable growth, regional integration, finance sector development and education.
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