Asian Development Fund

Description

The Asian Development Bank (ADB) is composed of 67 member countries, 48 of which are from the Asia-Pacific region. The Asian Development Fund (AsDF) provides grants to the ADB’s 15 lower-income developing member countries to promote poverty reduction and quality of life improvements.

What does it buy?

The ADB provides grants to support development projects and programs, including infrastructure, policy support and reform, production capacity, human development, environmentally sustainable investments, good governance, capacity building, and regional cooperation. Developing member countries eligible for grants include those lower-income, with a moderate or high risk of debt distress, and small island economies. Funds will go toward the final installment for AsDF’s 11th Replenishment (AsDF-12), which runs from 2017-2020.

Why is it important?

• Priority areas for AsDF include gender equity, food security, private sector development,
  governance, preparedness and response to climate change and disasters, and regional public
  goods such as cross-border health issues.
• From 2017 to 2019, the AsDF:
  • Built or upgraded more than 600 miles of road;
  • Strengthened climate and disaster resilience for 1.7 million people;
  • Connected 278,000 households with new and improved water supplies;
  • Supported 930,000 students with new or improved educational facilities; and
  • Provided microfinance accounts to more than 2 million people, over three-fourths of whom were
    women.
• Every $1 contribution from the U.S. leverages almost $20 in new donor contributions and internally generated resources.

Why should Americans care?

• The AsDF supports regional cooperation and integration, expanding markets for U.S. exports and investment. It provides grants to improve cross-border connectivity, modernize customs administrations, and boost trade.

What more could be done?

• Additional investments would fund arrears to the AsDF and the Multilateral Debt Relief Initiative (MDRI).
• Repaying the U.S.’s prior year commitments increases the number or size of grants available to developing member countries. The U.S. has $287 million in unmet commitments to the AsDF, adversely affecting beneficiaries and U.S. leadership and impairing its ability to shape the direction of AsDF policies and activities. Additionally, AsDF rules allow other donors to withhold their pledged contributions proportionally based on U.S. unmet commitments.