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International Trade and Finance

Notes ADB and India
ADB’s vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member
countries reduce poverty and improve their living conditions and quality of life. ADB pursues a
strategic agenda—sustainable economic growth, inclusive social development, and governance for
effective policies and institutions—with three crosscutting themes : private sector development,
regional cooperation, and environmental sustainability.
ADB’s main instruments in providing help to its developing member countries are policy dialogues,
loans, technical assistance, grants, guarantees, and equity investments. In 2003, ADB’s total lending
volume was US $ 6.1 billion. Technical assistance, which is used for preparing and implementing
projects, supporting advisory activities, and undertaking regional activities, amounted to US $ 176.5
million. Grants totaling US $ 483.5 million were also provided.
ADB was established in 1966. India was one of its 31 founding members. ADB’s headquarters is in
Manila. It has 23 offices around the world. ADB’s staff numbers more than 2,000 employees from
over 50 countries.
Loans and Technical Assistance
Nine loans for seven projects totaling US $ 1.5 billion were approved in 2003. They were for
development of rural roads, state roads, and national highways; urban water supply and environment
improvement; and power development. Twenty-two technical assistance projects totaling US $ 14.7
million were also approved. Cumulative ADB lending to India as of 31 December 2003 was US
$ 13.32 billion.
Self-Assessment

1. Choose the correct options
(i) Which of the following are not third-world regions?
(a) Latin America. (b) Asia.
(c) Africa. (d) Australia.
(ii) Which of the following countries are not newly industrialized countries (NICs)?
(a) Taiwan. (b) North Korea.
(c) Singapore. (d) Hong Kong.
(iii) Which country is not a transitional economy
(a) China. (b) Russia.
(c) Hungary. (d) Mexico.
(iv) The poorest region of the world is
(a) the Middle East. (b) sub-Saharan Africa.
(c) Asia. (d) Latin America.
(v) Of the world's population, what portion lives in developing countries?
(a) approximately 35%. (b) approximately 80%.
(c) nearly 10 billion people. (d) less than 1 billio people.
(vi) In which of the following countries would you expect material lifestyles to be most like those
in the United States?
(a) Nigeria. (b) Japan.
(c) India. (d) Mali.
30.5 Summary

• The UNCTAD secretariat has been doing yeoman’s service to LDCs through its annual and
other reports which highlight their trade, finance and debt problems vis-a-vis developed

356 LOVELY PROFESSIONAL UNIVERSITY