ADB & it’s Strategy ADB & it’s Strategy in Bangladesh: in Bangladesh: 2006-2010 2006-2010 Md Shamsuddoha

Equity and Justice Working Group

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The most powerful inter-governmental institution that influence The most powerful inter-governmental institution that influence the world development.the world development.

With initial capital from member states contributions and co-With initial capital from member states contributions and co-financing from bilateral sources and private commercial banks, financing from bilateral sources and private commercial banks, MDBs play a dominant role in shaping the directions of public MDBs play a dominant role in shaping the directions of public spending and burrowing.spending and burrowing.

This money now use even for modifying domestic policies and This money now use even for modifying domestic policies and prioritiespriorities

-- African Development Bank African Development Bank -- Asian development Bank Asian development Bank

Development Development Bank?Bank?

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ADB says it’s dedicated to reducing ADB says it’s dedicated to reducing poverty in the Asia and Pacific region poverty in the Asia and Pacific region through pro-poor sustainable economic through pro-poor sustainable economic growth, social development, and good growth, social development, and good governance. governance.

‘‘Overarching goal’ is poverty reductionOverarching goal’ is poverty reduction

Provides loans, investments, guarantees Provides loans, investments, guarantees and technical assistance to Developing and technical assistance to Developing Member Countries (DMCs)Member Countries (DMCs)

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Top 10 donors/shareholders at Top 10 donors/shareholders at ADBADB

Japan Japan 15.9%15.9% US US 15.9%15.9% China China 6.6% 6.6% India India 6.5% 6.5% Australia Australia 5.9% 5.9% Indonesia Indonesia 5.5%5.5% Canada Canada 5.3% 5.3% South KoreaSouth Korea 5.1% 5.1% GermanyGermany 4.4% 4.4% MalaysiaMalaysia 2.8% 2.8%

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Indonesia Indonesia 19% ($18.3B)19% ($18.3B) Pakistan Pakistan 12% ($11.4B)12% ($11.4B) China China 12% ($11.3B)12% ($11.3B) India India 11% ($10.4B)11% ($10.4B) Philippines 8.5% ($ 8 B)Philippines 8.5% ($ 8 B) Bangladesh Bangladesh 7% ($6.5B) 7% ($6.5B) KoreaKorea 6.7% ($6 B)6.7% ($6 B) ThailandThailand 6% ($5.3B)6% ($5.3B) Sri Lanka Sri Lanka 3% ($2.7B)3% ($2.7B) Vietnam Vietnam 2% ($2.3B)2% ($2.3B)

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ADB’s country lending-2004ADB’s country lending-2004

India27%

Pakistan15%

Philippines9%

Bangladesh5%

Sri Lanka4%

Others7%

Indonesia5%

China26%

Nepal2%

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sectorssectors

ADB's operations are diverse, coveringADB'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 tradeindustry 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 water supply, sanitation, and waste

management management activities involving multiple sectors activities involving multiple sectors

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ADB Sector lendingADB Sector lending

Governance 12%

Energy14%

Agriculture, Water12%

Transport36%

Urban Infrastructure

14%

Finance12% E

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Lending mechanismsLending mechanisms

The financial resources of the Bank The financial resources of the Bank consist the following:consist the following: – ordinary capital resources (OCR) for ordinary capital resources (OCR) for

“hard” loans, (7%-7.5% Interest) and “hard” loans, (7%-7.5% Interest) and – special Funds made up of contributions special Funds made up of contributions

by member countries for “soft” or by member countries for “soft” or concessional lending and technical concessional lending and technical assistance activities of the Bank.assistance activities of the Bank.

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LendingLending

Country AssistanceCountry Assistance– Loans and technical assistance Loans and technical assistance

(Earlier CAS now they produce CSP)(Earlier CAS now they produce CSP)

Programmes ( GMS and SASEC Programmes ( GMS and SASEC etc.)etc.)

GuaranteesGuarantees

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ADB Policy CycleADB Policy CyclePolicy

Internal review

Working Paper

Review paper( (R -Paper)

Multi-stakeholder Consultation

Draft paper

Board Approval

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CSP: Achieving MDGs by Achieving MDGs by supporting supporting NPRS NPRS

ImplementationImplementation

NPRS StrategiesNPRS Strategies Enhance pro-poor growth Enhance pro-poor growth Boosting EmploymentBoosting Employment Diversifying effective safety nets Diversifying effective safety nets Ensuring social developmentEnsuring social development Environmental sustainabilityEnvironmental sustainability Good governance Good governance Promoting inclusive service delivery Promoting inclusive service delivery

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CSP: Achieving MDGs Achieving MDGs by by supporting NPRS supporting NPRS

Medium term economic growth must accelerate Medium term economic growth must accelerate toto

7-8% per annum; HOW ?7-8% per annum; HOW ?

Increased private investment in all sectorIncreased private investment in all sector Agricultural diversification and increased Agricultural diversification and increased

agribusiness activityagribusiness activity Increased efficiency in industrial & service Increased efficiency in industrial & service sectorsector Enhanced access to irrigation , finance and Enhanced access to irrigation , finance and

new technologiesnew technologies Rural electrification, market infrastructure dev.Rural electrification, market infrastructure dev.

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CSP: Supporting NPRSSupporting NPRS

ADB will no longer provide support ADB will no longer provide support on…….on…….

Biodiversity and forest Biodiversity and forest Land administration reform Land administration reform Crop diversificationCrop diversification Livestock development Livestock development Rural livelihood development Rural livelihood development Clean fuel development Clean fuel development Early childhood development Early childhood development

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CSP: Supporting NPRSSupporting NPRS

CSP aims to assist Bangladesh in ….CSP aims to assist Bangladesh in ….

Improving the investment climate for Improving the investment climate for private sector-led growth and private sector-led growth and employment. employment.

Agricultural diversification and increased Agricultural diversification and increased agribusiness activityagribusiness activity

Advancing social development agendaAdvancing social development agenda EQ

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….will help government in sectors where reforms are difficult e.g. Power, Ports and Railways

Other on going issues:Other on going issues:Local and Regional PerspectiveLocal and Regional Perspective

Water sectorWater sector – Integrated water resources ManagementIntegrated water resources Management– Privatization policy push Privatization policy push

Energy Policy Energy Policy – Coal supportCoal support– Climate fund , Energy efficiency fundClimate fund , Energy efficiency fund– Renewable Energy fundRenewable Energy fund– Carbon fundCarbon fund

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