Asian Development Bank

November 2016

President
Takehiko Nakao

The views expressed in this presentation are the views of the author and do not necessarily reflect the views or policies of the
Asian Development Bank Institute (ADBI), the Asian Development Bank (ADB), its Board of Directors, or the governments
they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any
consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.
 Azerbaijan ADB Regional Members48 economies
Uzbekistan Kazakhstan

Kyrgyz Republic Mongolia

Georgia
= Advanced
Republic of Korea
Armenia Tajikistan economies and
Peoples Republic of China graduated
Turkmenistan Nepal Bhutan Japan developing member
countries
Lao PDR Hong Kong, China
Afghanistan India
Myanmar Taipei,China
Thailand Marshall Islands
Pakistan Bangladesh Viet Nam Philippines
Cambodia Micronesia Kiribati
Sri Lanka Brunei
Palau Nauru
Malaysia Tuvalu
Maldives Papua New Guinea
Solomon Islands Samoa
Singapore
Indonesia Timor-Leste Cook Islands

Fiji
Non-Regional Members19 countries Vanuatu
Australia Tonga
Austria, Belgium, Canada, Denmark, Finland, France,
Germany, Italy, Ireland, Luxembourg, Netherlands,
Norway, Portugal, Spain, Sweden, Switzerland,
Turkey, United Kingdom, United States
New Zealand
2
 Country Data (2015e)
Population GDP Per capita GDP
(million $ billion $
Peoples Rep. of China 1,374.6 10,983 7,990
India 1,292.7 2,091 1,617
Indonesia 255.5 859 3,362
Pakistan 186.2 270 1,450
Bangladesh 159.9 206 1,287
Philippines 102.2 292 2,858
Viet Nam 91.7 191 2,088
Thailand 68.8 395 5,742
Myanmar 51.8 67 1,292
Republic of Korea 50.6 1,377 27,195
reference: advanced economies
Japan 126.9 4,123 32,486
United States 321.6 17,947 55,805
Germany 81.9 3,358 40,997
France 64.3 2,422 37,675
United Kingdom 65.1 2,849 43,771
e: estimates
Source: World Economic Outlook April 2016 database.
3
 Growth Rate (%)
2015 2016 2017
Forecast Forecast

Developing Asia 5.9 5.7 5.7

Peoples Rep. of China 6.9 6.6 6.4
India 7.6 7.4 7.8
Indonesia 4.8 5.0 5.1
Pakistan 4.0 4.7 5.2
Bangladesh 6.6 7.1 6.9
Philippines 5.9 6.4 6.2
Viet Nam 6.7 6.0 6.3
Thailand 2.8 3.2 3.5
Myanmar 7.2 8.4 8.3
Republic of Korea 2.6 2.6 2.8

Source: Asian Development Outlook 2016 Update, September 2016

4
Developing Asia growth moderated, but
remains healthy
Real GDP Growth (y-o-y, %)

10 Developing Asia excluding PRC Developing Asia

9.4
8
8.1

6
6.4
5.9 5.7 5.7

4 4.7 4.5 4.8

4.4

0
2010 2011 2012 2013 2014 2015 2016f 2017f

f = forecasts
Source: Asian Development Outlook 2016 Update. 5
 Factors behind the PRCs growth
slowdown
%
Economic growth Structural
18 Shrinking working-
15 age population
12 Retail sales Rising wages
GDP
9 Industrial value- Income
added
6
9.5
convergence
3
7.9 7.8 7.3 6.9 6.7 6.7 6.7 New growth model
0
2011 2012 2013 2014 2015 Q1 Q2 Q3
Cyclical
2016
Weak global
Source: CEIC Data Company.
economy
Excess capacity
6
 PRC shifts toward services- and
consumption-driven economy
Demand-side Supply-side Shares
% Shares in GDP %
in GDP
100 100

80 80 44.1
48.5 51.6 50.2 52.8
Consumption Services
60 60
Investment
Industry
40 40
Net exports 46.4
47.9 40.9 39.5 Agriculture
45.0
20 20

9.5 8.9 7.7

0 3.7 3.4 0
2010 2015 2010 2015 Q1-Q3
2016

Source: Asian Development Outlook 2016 Update, ADB; and national source.
7
 Asian Development Bank (ADB)
Headquarters Manila, Philippines
Founded in 1966
67 Members
Authorized Capital $ 147.1 billion* (end 2015)

Major shareholders (capital share %): Japan 15.6%), United

States 15.6%), PRC6.5%), India6.3%
* Paid-in capital (including $0.9bn committed but not paid yet): $7.4bn
Callable capital: $139.7bn

Annual Loan/Investment Approval $16.3 billion* (2015)

* Including loans, ADF grants, guarantees, and equity investments, but excluding
technical assistance and cofinancing
Loan Outstanding $89.1 billion (end 2015)

Top recipients: India, PRC, Pakistan, Viet Nam, Bangladesh

Staff 3,098 (including international staff 1,104) (Dec
2015)
8
 ADB Operations
ADB provides loans, grants and technical assistance to developing
member countries in Asia and the Pacific.
Loans are financed from ordinary capital resources (OCR) and Asian
Development Fund (ADF).
OCR loans are provided to middle-income countries (per capita income
$7,185) at quasi market rate.
ADF loans are provided to low income countries (per capita income $1,215)
at concessional terms (long maturities, low interest rate including grants)
Grants are offered to countries with limited debt repayment capacity
e.g. Afghanistan, Cambodia, Lao PDR
Technical assistance includes capacity building, project preparation, and
research for developing members.
2015 Approvals* 2015 Outstanding Equity
OCR $13.42 billion $ 61.9 billion $ 17.4 billion**
ADF Loans $ 2.51 billion $ 27.2 billion $ 30.8 billion
ADF Grants $ 0.36 billion
Technical Assistance $ 0.14 billion***
* Based on the Statement of ADBs Operations in 2015.
**As of 31 December 2015. Including Paid-in capital ($6.4bn) and ordinary reserves (accumulated retained earnings: $11.0bn).
*** Excluding cofinancing.
9
 Annual Approvals of Loans and Grants
Ordinary Capital Resources (OCR) and Asian Development Fund Operations (ADF)
($ billion)

20.0
18.0 16.3
16.0 15.2
14.1 13.5
14.0 12.6 12.9 12.5
12.0 10.4 10.7
10.0
7.9
8.0 6.3
6.0
4.0
2.0
0.0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

10
 ADB 2015 Operations
Ordinary Capital Resources (OCR) and Asian Development Fund Operations (ADF)
Approvals ($16.3 billion)

By Country By Sector
Finance Water
Sector 11% (12%)
Development Public Sector
16% (8%) Management
India,
16.3% 10% (11%)
Others, (21.6%)
26.4% China, Agriculture
(26.7%) 12.6% 5% (7%)
(13.5%)
Education
Philippines, Transportation 4% (6%)
5.2% (7.2%) 17% (32%)
Health
Viet Nam, 2% (0.001%)
6.3% (8.5%) Pakistan, Energy
10.8% 33% (20%)
Information &
Kazakhstan, (10.2%) Communication
6.7% (1.0%) Technology
Bangladesh, Indonesia, 1% (0.4%)
7.3% (7.2%) 8.4% (4.1%)
Industry &
Trade
Notes: 2015 figures are based on the ADB Annual Report 2015. 0.5% (3%)
Bracketed numbers are from 2014.

11
 ADB Operational Activities
-Approvals ($ million) -
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Loans and Grants*

Sovereign 7,115 9,415 9,310 13,702 11,361 11,344 11,127 12,589 11,571 13,669
Non-
sovereign 805 981 1,400 1,474 1,240 1,561 1,375 1,539 1,918 2,626
Subtotal 7,920 10,396 10,709 15,176 12,601 12,905 12,502 14,128 13,490 16,295

Technical
Assistance 148 161 189 202 174 145 151 155 159 141

Cofinancing 1,541 1,135 5,085 5,355 5,162 7,324 8,272 6,645 9,222 10,735

Total
Operations 9,609 11,691 15,983 20,733 17,936 20,374 20,925 20,928 22,870 27,171
* Figures include loans, grants, equity investments, and guarantees.

Source: Operations Services and Financial Management Department, ADB.

12
 ADB Operational Activities
-Disbursements ($ million) -
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Loans and
Grants*

Sovereign 5,434 6,423 8,098 9,997 7,201 7,516 8,080 7,779 8,962 10,773
Non-
sovereign 489 606 725 507 865 792 615 924 1,229 1,568

Total 5,923 7,030 8,823 10,503 8,066 8,309 8,695 8,703 10,191 12,341

*Figures include loans, ADF grants, guarantees, and equity investments, but do not include technical assistance,
other special funds and cofinancing.
Source: Controllers Department, ADB.

. 13
 Office of the Public-
Organization Chart of ADB (as of Oct 2016) Private Partnership

Office of the
Board of Ombudsperson

Independent
Governors Office of the Auditor
ADB Institute
Evaluation General
Department
Office of Anticorruption
Board of & Integrity
Office of the Directors(1)
Compliance Strategy and Policy Dept.
Review Panel
-European Representative Ofc.
President -Japanese Representative Ofc.
-North American Representative
Ofc.
Managing Director Office of the Special
General Project Facilitator

Vice President Vice President Vice President Vice President Vice President Vice President
(Operations 1) (Operations 2) (Knowledge Mgmt. & (Finance & Risk (Administration & (Private Sector &
Sustainable Devt) Management) Corporate Mgmt.) Cofinancing Ops.)

South Asia East Asia Sustainable Devt. & Controllers Operations Services & Private Sector
Department (2) Department (2) Climate Change Dept.
Department Financial Mgmt. Dept. Operations Department

Economics Research & Budget, Personnel &

Central & West Pacific Regional Cooperation Treasury Mgmt. Systems Dept. Office of Cofinancing
Asia Department(2) Department (2) Dept.
Department Operations
Office of
Department of External
Administrative
Relations
Southeast Asia Office of Risk Services
Office of the
Department (2) Management Secretary
(1) Board of Governors currently consists of 12 Directors from Japan, US, China, India, Office of the
Australia, Germany, Italy, Canada, Korea, Indonesia, Thailand and the Philippines. General Counsel
(2) Under regional departments, 29 local offices are located in 28 borrowing countries. In
addition, Pacific Liaison Office located in Sydney is in charge of Pacific countries.
Office of the Information &
Systems Technology
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 Sector and Thematic Groups

Sector Groups Thematic Groups

Education Climate Change and
Energy Disaster Risk Management
Finance Sector Environment
Development Gender Equity
Health Governance
Transport Public-Private Partnership
Urban Regional Cooperation and
Water Integration
Rural Development and
Food Security (Agriculture)
Social Development

15
 ADB TO DOUBLE ANNUAL CLIMATE FINANCING
TO $6 BILLION FOR ASIA-PACIFIC BY 2020
(announced on 25 September 2015)

Doubling ADBs annual climate financing to $6 billion by 2020,

from the current $3 billion.
$4 billion for mitigation through scaling up support for renewable energy,
energy efficiency, sustainable transport, and building smart cities.
$2 billion for adaptation through more resilient infrastructure, climate-
smart agriculture, and better preparation for climate-related disasters.
Continuing to explore cofinancing with Green Climate Fund and
other partners. Mobilizing greater private resources. Issuing
more green bonds.
Adjust its procurement systems in order to facilitate the
integration of cleaner and more advanced technology into its
projects
Strengthen partnerships with centers of excellence to provide
cutting-edge knowledge and expertise
16
 Reforming ADB
Enhancing lending capacity
Streamlining procurement procedures by adopting a risk-
based approach.
More authorities delegated to Resident Missions.
The office of Public-Private Partnership established.
7 Sector Groups (Transport, Energy, Health, Education
etc.) and 8 Thematic Groups (Gender, Governance,
Environment etc.) reconstituted with full time secretariats.
Talent management initiative to enhance staff
performance and workforce planning to allocate staff
resources more efficiently.
Private sector operations strengthened through more
rational interpretation of equity headroom, introduction of
a facility for small non-sovereign transactions, and
adoption of a new economic capital planning model.
17
 Asian Century Scenario
global GDP composition)
Source: Asia 2050, which is a study in 2011 commissioned by ADB

Present2013 Asian Century Scenario2050

Asias GDP: $22 trillion (market FX rate) Asias GDP: $174 trillion (market FX rate)
Asias per capita GDP: $10,078 (PPP) Asias per capita GDP: $40,800 (PPP)
Population (billion) and Share (%)
2013 2050
Asia 3.97 56 4.76 52
World 7.15 100 9.15 100
18
 Asian Share of World GDP
70%

60%

50%

40%

30%

20%

10%

0%
1700 1820 1870 1913 1950 1970 1980 1995 2010 2020 2030 2040 2050
Source: Asia 2050: Realizing the Asian Century

19
 Poverty in ADB Developing Member
Countries
$1.9/day (2011 PPPs) $3.1/day (2011 PPPs)
No. of Poverty Share of No. of Poverty Share of
Population Poor Incidence World Poor Incidenc World
(million) (million) (%) Poor (%) (million) e (%) Poor (%)
3,138
1,143 36.4 67.5 2,101 67.0 71.1
1999 (52%)*
3,381
812 24.0 61.2 1,788 52.9 67.8
2005 (52%)*
3,604
467 13.0 49.3 1,359 37.7 62.0
2011 (51%)
3,641
435 12.0 49.4 1,327 36.4 63.4
2012 (51%)*
3,678
330 9.0 43.0 1,173 31.9 60.7
2013 (51%)*
Note: *Ratio to the world population (6,049 million in 1999; 6,520 million in 2005; 7,013 million in 2011; 7,098
million in 2012; 7,182 in 2013).
Source: ADB estimates based on World Banks PovcalNet data for 34 DMCs (downloaded October 4, 2016).

20
Eight Conditions for Economic Development
- Op-ed by President Nakao, Nikkei Asian Review (Feb 5, 2015) -

1. Infrastructure investment
2. Investment in health and education
3. Macroeconomic stability
4. Open trade and investment regimes: including streamlining
regulatory framework and reforming sate-owned enterprises
5. Public governance: anti-corruption, efficiency of delivering
services and quality of regulations
6. Inclusiveness and sustainability: sharing development fruits,
gender equality, environment, and climate change
7. Vision for the future
8. Political stability, security, and good relations with
neighboring countries
21