ADB & its Strategy in Bangladesh: Md Shamsuddoha Equity and Justice Working Group EQUITYBD

The most powerful inter-governmental institution that influence the world development. The most powerful inter-governmental institution that influence the world development. With initial capital from member states contributions and co- financing from bilateral sources and private commercial banks, MDBs play a dominant role in shaping the directions of public spending and burrowing. With initial capital from member states contributions and co- financing from bilateral sources and private commercial banks, MDBs play a dominant role in shaping the directions of public spending and burrowing. This money now use even for modifying domestic policies and priorities This money now use even for modifying domestic policies and priorities -African Development Bank -Asian development Bank Development Bank? EQUITYBD

Cont… ADB says its dedicated to reducing poverty in the Asia and Pacific region through pro-poor sustainable economic growth, social development, and good governance. ADB says its dedicated to reducing poverty in the Asia and Pacific region through pro-poor sustainable economic growth, social development, and good governance. Overarching goal is poverty reduction Overarching goal is poverty reduction Provides loans, investments, guarantees and technical assistance to Developing Member Countries (DMCs) Provides loans, investments, guarantees and technical assistance to Developing Member Countries (DMCs) EQUITYBD

Top 10 donors/shareholders at ADB Japan 15.9% Japan 15.9% US 15.9% US 15.9% China 6.6% China 6.6% India 6.5% India 6.5% Australia 5.9% Australia 5.9% Indonesia 5.5% Indonesia 5.5% Canada 5.3% Canada 5.3% South Korea 5.1% South Korea 5.1% Germany 4.4% Germany 4.4% Malaysia 2.8% Malaysia 2.8% EQUITYBD

Top 10 Borrowers (end-2001) Indonesia 19% ($18.3B) Indonesia 19% ($18.3B) Pakistan 12% ($11.4B) Pakistan 12% ($11.4B) China 12% ($11.3B) China 12% ($11.3B) India 11% ($10.4B) India 11% ($10.4B) Philippines 8.5% ($ 8 B) Philippines 8.5% ($ 8 B) Bangladesh 7% ($6.5B) Bangladesh 7% ($6.5B) Korea 6.7% ($6 B) Korea 6.7% ($6 B) Thailand 6% ($5.3B) Thailand 6% ($5.3B) Sri Lanka 3% ($2.7B) Sri Lanka 3% ($2.7B) Vietnam 2% ($2.3B) Vietnam 2% ($2.3B) EQUITYBD

ADBs country lending-2004 EQUITYBD

sectors ADB's operations are diverse, covering agriculture and natural resources agriculture and natural resources education education energy energy finance finance health, nutrition, and social protection health, nutrition, and social protection industry and trade industry and trade law, economic management, and public policy law, economic management, and public policy transport and communications transport and communications water supply, sanitation, and waste management water supply, sanitation, and waste management activities involving multiple sectors activities involving multiple sectors EQUITYBD

ADB Sector lending EQUITYBD

Lending mechanisms The financial resources of the Bank consist the following: The financial resources of the Bank consist the following: –ordinary capital resources (OCR) for hard loans, (7%-7.5% Interest) and –special Funds made up of contributions by member countries for soft or concessional lending and technical assistance activities of the Bank. EQUITYBD

Lending Country Assistance Country Assistance –Loans and technical assistance (Earlier CAS now they produce CSP) Programmes ( GMS and SASEC etc.) Programmes ( GMS and SASEC etc.) Guarantees Guarantees EQUITYBD

ADB Policy Cycle Policy Internal review Working Paper Review paper( (R -Paper) Multi-stakeholder Consultation Draft paper Board Approval EQUITYBD

Achieving MDGs by supporting NPRS Implementation CSP: Achieving MDGs by supporting NPRS Implementation NPRS Strategies Enhance pro-poor growth Enhance pro-poor growth Boosting Employment Boosting Employment Diversifying effective safety nets Diversifying effective safety nets Ensuring social development Ensuring social development Environmental sustainability Environmental sustainability Good governance Good governance Promoting inclusive service delivery Promoting inclusive service delivery EQUITYBD

Achieving MDGs by supporting NPRS CSP: Achieving MDGs by supporting NPRS Medium term economic growth must accelerate to 7-8% per annum; HOW ? Increased private investment in all sector Increased private investment in all sector Agricultural diversification and increased agribusiness activity Agricultural diversification and increased agribusiness activity Increased efficiency in industrial & service Increased efficiency in industrial & service sector sector Enhanced access to irrigation, finance and new technologies Enhanced access to irrigation, finance and new technologies Rural electrification, market infrastructure dev. Rural electrification, market infrastructure dev. EQUITYBDCont…

Supporting NPRS CSP: Supporting NPRS ADB will no longer provide support on……. Biodiversity and forest Biodiversity and forest Land administration reform Land administration reform Crop diversification Crop diversification Livestock development Livestock development Rural livelihood development Rural livelihood development Clean fuel development Clean fuel development Early childhood development Early childhood development EQUITYBDCont…

Supporting NPRS CSP: Supporting NPRS CSP aims to assist Bangladesh in …. Improving the investment climate for private sector-led growth and employment. Improving the investment climate for private sector-led growth and employment. Agricultural diversification and increased agribusiness activity Agricultural diversification and increased agribusiness activity Advancing social development agenda Advancing social development agenda EQUITYBDCont… ….will help government in sectors where reforms are difficult e.g. Power, Ports and Railways

Other on going issues: Local and Regional Perspective Water sector Water sector –Integrated water resources Management –Privatization policy push Energy Policy Energy Policy –Coal support –Climate fund, Energy efficiency fund –Renewable Energy fund –Carbon fund EQUITYBD