Day 90 – Q 3.In terms of objectives and foundational philosophies, discuss the similarities and differences between the World Bank and the Asian Development Bank (ADB).
3. In terms of objectives and foundational philosophies, discuss the similarities and differences between the World Bank and the Asian Development Bank (ADB).
उद्देश्यों और मूलभूत दर्शन के संदर्भ में, विश्व बैंक और एशियाई विकास बैंक (ADB) के बीच समानता और अंतर पर चर्चा करें।
The World Bank Group and its constituent entities are part of the United Nations System and constitute the premier international development bank in the world.
By contrast, the Asian Development Bank is one of several regional development banks outside the United Nations System that service specific regions of the world. Founded in 1966, the Asian Development Bank’s (ADB) headquarters are in Manila, Philippines. The Asian Development Bank’s primary mission is to foster growth and cooperation among countries in the Asia-Pacific Region.
Similarities between the World Bank and the Asian Development Bank (ADB)
- Like the World Bank, Asian Development Bank have countries, not private entities, as their shareholders.
- ADB is modeled closely on the World Bank, and has a similar weighted voting system where votes are distributed in proportion with members’ capital subscriptions.
- They do generate profits, which are then either paid as dividends or reinvested in their own institutional programs.
- Both the World Bank and ADB are actively involved in every low- and middle-income country in Asia and the Pacific.
Differences between the World Bank and the Asian Development Bank (ADB)
- The majority of the ADB’s members are from the Asia-Pacific region. World bank is represented from all over the world.
- The two largest shareholders of the Asian Development Bank are the United States and Japan. The largest shareholders include the United States (17.25% of total subscribed capital), Japan (7.42%), China (4.78%), Germany (4.33%), and France and the United Kingdom (with 4.06% each)
- The World Bank collects worldwide data on education from national statistical reports, statistical annexes of new publications, and other data sources in its Education Statistics, unlike ADB.
Both the institution defines themselves as a social development organization that is dedicated to reducing poverty through inclusive economic growth, environmentally sustainable growth, and regional integration. They must work in synergy, rather than competition, among themselves and other institutions like Asian Infrastructure Investment Bank and New Development Bank.