Asian Development Bank and Poverty Reduction Plans Essay

1934 WordsJul 20, 20098 Pages
Asian Development Bank and Poverty Reduction Plans The Asian Development Bank has been successful in the last three decades in reducing poverty. Their plans for long-term poverty reduction are derived from a solid foundation of macroeconomic theory. In the past, the ADB measured poverty by income level. However, it is now widely agreed up that the different sides of poverty go beyond the traditional definition. Poverty is better measured in terms of basic education, health care, nutrition, water, sanitation, as well as income, employment, and wages. The ADB is mainly concerned with plans that have a long-term impact. The ADB’s strength lies in financing relatively large investments, as well as working with the governments in support of policy reform. There are two general purposes of the ADB. The first is retrieving additional outside resources, either from governments or from the world’s capital markets. Secondly, the projects and plans of the ADB will contribute, not only to the development of individual member countries, but also of the development of the region as a whole (White, 26). The nations of the developing world are commonly divided into three main groups that are Asian, African, and Latin American. Before the ADB existed, Asia’s share of the world aid was disproportionately small because of the enormous population when compared with Africa or Latin America (White, 33). Asia had more of an evolved cooperation and had greater experience of outside development finances than either Africa or Latin America. However, it was the last of the three to have discussions concerning setting up a regional bank. The discussion leading to the creation of the Asian bank moved quickly. From the first formal proposal to the singing of the agreement establishing the bank was a period of only just over two years. From 1962 to mid 1965, the initiative

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