11.6 Asian Development Bank

. Asian Development Bank Unlike the IMF which is largely self- financing, Multilateral Development Banks (MDBs) are highly dependent on shareholder contributions particularly in terms of financing their operations of their soft loan windows, that provide grants and low interest loans to very poor countries. MDBs belong to a complex set of public institutions that can be categorized as (i) global, (ii) regional and (iii) Sub-regional. Categorizations of all MDBs are done by taking into consideration their regional coverage. This facilitates the process of clearly understanding the similarities and differences among them by using common denominators rather than extensive individual assessments. Most MDBs fall in the above mentioned three categories and directly target a particular continent such as the Asian Development Bank, the African Development Bank, Asian Infrastructure and Investment Bank, New Development Bank, Inter-American Development Bank, Islamic Development Bank, European Investment Bank, etc. During the late 1930s and early 1940s, the concept of economic development began to emerge in the contemporary sense. The prominent British economist John Maynard Keynes addressed economic and social needs that emerged in the post-war period. Harry Dexter White- an American economist was a key figure in envisioning the set of institutions that were to be created as envisioned by John Maynard Keynes. White, in the year paved the path towards the fundamentals of a development policy when he prepared a proposal for a United Nations Stabilization Fund and Bank for Reconstruction and Development of the United and Associated Nations, that would provide the basis for a post-war international monetary reform. The proposal called for the creation of two related institutions with the powers, resources and structure adequate to address major issues in the post-war period. MDBs such as the World Bank and the Asian Development Bank (ADB) are publicly financed institutions that are responsible for setting the development agenda of their member countries. Almost all countries in the world with the exception of Cuba and North Korea are members of MDBs. All countries with membership in MDBs contribute to the institution since they are affiliated to and avail loans from them. MDBs emphasize