ADB triples capital to boost poverty reduction
The Asian Development Bank's (ADB) Board of Governors has agreed to
triple ADB's capital base from $55 billion to $165 billion, giving it
much-needed resources to respond to the global economic crisis and to
the longer term development needs of the Asia and the Pacific region.
Voting by ADB's 67 member countries on a fifth general capital
increase closed on April 29, with an overwhelming majority of members
endorsing it.
The 200 percent increase is ADB's largest, and the first since ADB
increased its capital by 100 percent in 1994. "This substantial increase
is a resounding vote of confidence from our shareholders for what we can
achieve as a premier development partner in the region," said ADB
President Haruhiko Kuroda.
The capital increase decision comes two days before ADB begins its
42nd Annual Meeting in Bali, Indonesia, from May 2-5.
The 200 percent increase allows ADB to substantially increase its
support to countries affected by the global downturn, enabling the ADB
to provide an additional $10 billion from its Ordinary Capital Resources
over the next few years for crisis-related assistance.
"We must do all we can to prevent the reversal of hard won gains for
our region in social and economic development, and in poverty
reduction," Kuroda said.
ADB estimates that the crisis will keep more than 60 million people
in developing Asia trapped in absolute poverty this year, and nearly 100
million more in 2010.
The capital increase will also give ADB the financial capability to
pursue longer term development priorities in the region. Even before the
global economic crisis, funding needs for the region were huge.
ADB's developing member countries face an estimated resource gap of
$53 billion a year to meet the Millennium Development Goals. |