About ADB

Promoting Economic Growth

Economic growth projects, including those in energy, transport and communications, industry, finance, and agriculture, were pursued by ADB in 1999. Interventions often combined microfinance, agriculture sector support services, livestock development, rural road and market improvements, natural resource management, environmental protection, and participatory design and implementation of programs that involve nongovernment organizations (NGOs), community-based organizations (CBOs), and other stakeholder groups.

Agriculture projects focusing on production are a key to reducing poverty. Agriculture investments tend to create more jobs than equivalent investments in other sectors and can directly target pockets of poverty.

In 1999, ADB lent $2.9 billion for 23 public sector-financed projects (excluding technical assistance loans) with economic growth as the primary development objective. This represented 50 percent of all the projects approved during the year and 60 percent of the total lending volume in the public sector. Policy-based program lending accounted for 41.7 percent of ADB's ordinary capital resources (OCR) of $1.6 billion and 11.6 percent of its Asian Development Fund resources of $124.0 million in 1999.

Supporting Economic Growth Through Infrastructure Development

Energy: In 1999, three out of five energy projects, totaling $607 million, had economic growth as their primary objective. In Indonesia, a $380 million Power Sector Restructuring Program will ensure a stable supply of electricity, essential for the country's economic recovery, and a $20 million capacity-building loan will facilitate the establishment of a competitive electricity market. Two other projects are for upgrading the Dhaka Power System in Bangladesh ($157 million) and for rural electrification, distribution, and transmission in Nepal ($50 million).

Transport and Communications: Five out of 10 projects in the transport and communications sector, totaling $613 million, focused on economic growth. In the People’s Republic of China, ADB continued to support the development of the primary road system with the approval of the Shanxi Road Development Project and the Southern Yunnan Road Development Project, each for $250 million. The projects are in the poorer interior provinces and are expected to enhance incomes and reduce poverty by lowering transport costs. Connecting provincial and county roads will also be improved or constructed, providing better access for the rural population to market opportunities, social services, and employment. In Mongolia, ADB provided $25 million to upgrade the second key segment of the road linking Ulaanbaatar to the PRC and the Russian Federation. Important regional trade benefits and reduced transport costs will result. In Papua New Guinea, roads are being upgraded and maintained through a $63 million ADB project. In Viet Nam, a $25 million East-West Corridor road project is promoting subregional cooperation and economic growth in an area where the incidence of poverty is extremely high.

Industry and Finance: Three projects in the industry and finance sectors, for a total of $443 million, are aimed at improving efficiency. ADB provided $36 million to the Kyrgyz Republic to support reform in the finance sector by improving financial intermediation and broadening and deepening the capital markets, which are expected to lead to more efficient mobilization and allocation of capital in the economy. The other two projects are for trade, export promotion, and industry in Pakistan ($307 million) and for state-owned enterprise reform and corporate governance in Viet Nam ($100 million).

Supporting Agriculture and Natural Resources

In 1999, loans to the agriculture and natural resource sector totaled $430.4 million for six projects in five countries. In addition, technical assistance of $28.4 million was provided for capacity building, strategic planning, and institutional innovations.

In the People's Republic of China, ADB responded to the devastation caused by the floods of 1998 and approved a multisector loan of $330 million to rebuild key infrastructure facilities. In Kyrgyz Republic, Lao People's Democratic Republic, and Pakistan, loans focused on improving the skills of small-scale, poor farmers and their access to support services and rural infrastructure. In Pakistan and Sri Lanka, loans will assist coastline stabilization, fisheries management, and farmer-managed irrigation systems. In Thailand, a $300 million program loan will improve overall agriculture sector management through institutional and policy reforms.

Six regional technical assistance, 20 advisory technical assistance, and 21 project preparatory technical assistance were provided to 14 countries in 1999.

In the natural resource subsector, assistance focused on strengthening institutions in planning and managing water and forest resources and in promoting greater community participation and cost sharing in irrigation projects. In agriculture, assistance was provided for strengthening rural financial services and institutions in Cambodia, Viet Nam, and Uzbekistan. A regional technical assistance enabled ADB’s developing member countries and other stakeholders to participate in formulating ADB's microfinance strategy. In addition, project preparatory assistance was provided to Bangladesh, Indonesia, Pakistan, and Viet Nam to formulate agriculture projects to enhance farm incomes through improved productivity, diversification into high-value crops, and improved input and market linkages. A regional study on the problems and concerns of rural Asia was completed. The results of this study will be used to formulatte a rural development strategy for ADB.

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