TNAG-1489-FCO40-2046-Hong-Kong-and-the-Asian-Development-Bank-1986 — Page 26

ASIAN DEVELOPMENT BANK

Background Note

Introduction - The Bank is an international development finance institution owned by its member governments. It was established in 1966 with headquarters in Manila. It now has 45 member countries, 31 regionals including 3 donor countries - Australia, New Zealand and Japan - and 14 non-regionals including the US, Canada,

(The the main EC countries and the Nordics. The UK was a founder member. Peoples' Republic of China has expressed an interest in joining, and Spain is about to become a member).

The Asian Development Fund was established in 1974 as the Bank's concessional lending arm to consolidate several existing special funds which had provided concessional loans on different terms, and to standardise the lending by the

The Fund lends interest free, except Bank to the smaller and poorer members.

for a service charge of 1%, for repayment over 40 years to the poorest members

of the Bank.

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Purpose To foster economic growth and cooperation in the Asian and Pacific region and to contribute to the economic development of its developing member countries, collectively and individually.

Membership - Regional members are: Afghanistan, Australia, Bangladesh, Bhutan, Burma, Cambodia, China (Taiwan), Cook islands, Fiji, Hong Kong, India, Indonesia, Japan, Kiribati, Korea, Laos, Malaysia, Maldives, Nepal, New Zealand, Pakistan, Papua New Guinea, Philippines, Singapore, Solomon Islands, Sri Lanka, Thailand, Tonga, Vanuatu, Vietnam, Western Samoa.

Non-regional members are: Austria, Belgium, Canada, Denmark, Finland, Germany, Italy, Netherlands, Norway, Sweden, Switzerland, UK, USA.

Because

Under the Bank's Each member country subscribes to the Bank's capital stock. Charter the non-regionals total share of the capital cannot exceed 40%. three of the regionals are donor countries, in effect this means that the donor countries have a majority vote (58% following the latest increase in capital stock). The non-regionals voting power is 36.5% and UK's 2.43%. (August 1985).

/Organisation