2017 is the 50th Anniversary of the Asian Development Bank (ADB). Since its inception, ADB has emphasized on supporting the expansion of agricultural production to the enhancement of physical infrastructures, sustainable development, macroeconomic stability, cooperation in the financial sector and other related projects pertain to development in Asian countries.
Presently ADB has two lending mechanisms. Firstly, non-concessional loans to middle-income countries in Asia. Secondly, concessional loans and grants to low-income countries at below market rates. As many Asian countries have grown impressively in the last five decades, the demand for non-concessional loans from Asian countries has declined. Hence ADB is facing daunting challenges in maintaining, if not strengthening, its relevancy.
For this reason and others, Venkatachalam Abbumozhi (Senior Economist, ERIA) suggests that ADB urgently needs to immediately undertake five important initiatives in order to stay relevant. Abbumozhi's views on this subject are available here.
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