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.

Asian Development Bank

November 2019

President
Takehiko Nakao
ADB Regional Members (49 economies)

2
 Country Data (2018)
Population GDP Per capita GDP
(million） （$ billion） （$）
People’s Rep. of China 1,392.7 13,572 9,745
India 1,333.2 2,727 2,045
Indonesia 265.0 1,042 3,932
Pakistan 200.9 312 1,555
Bangladesh 163.7 274 1,675
Philippines 106.6 331 3,104
Viet Nam 94.5 231 2,440
Thailand 66.4 505 7,603
Republic of Korea 51.6 1,619 31,362
Uzbekistan 32.8 51 1,539
Malaysia 32.4 354 10,942
Papua New Guinea 9.0 25 2,773
Singapore 5.6 361 64,042
Fiji 0.9 5 6,143
Developing Asia 4,013.4 22,959 5,721
Developing Asia excluding NIEs 3,925.1 20,026 5,102
The Pacific 12.8 37 2,897
Advanced economies
Euro area 339.0 13,669 40,327
United States 327.4 20,494 62,606
Japan 126.5 4,972 39,306
Germany 82.9 4,000 48,264
United Kingdom 66.5 2,828 42,558
Australia 25.2 1,418 56,352
Sources: Asian Development Outlook database, September 2019. World Economic Outlook April 2019
database for advanced economies.
3
 Growth Rate (%)
2018 2019 2020
(forecast) (forecast)
People’s Rep. of China 6.6 6.2 6.0
India 6.8 6.5 7.2
Indonesia 5.2 5.1 5.2
Pakistan 5.5 3.3 2.8
Bangladesh 7.9 8.1 8.0
Philippines 6.2 6.0 6.2
Viet Nam 7.1 6.8 6.7
Thailand 4.1 3.0 3.2
Republic of Korea 2.7 2.1 2.4
Uzbekistan 5.1 5.8 6.0
Malaysia 4.7 4.5 4.7
Papua New Guinea -0.6 4.8 2.1
Singapore 3.1 0.7 1.4
Fiji 3.5 2.9 3.2
Developing Asia 5.9 5.4 5.5
Developing Asia excluding NIEs 6.4 6.0 6.0
The Pacific 0.4 4.2 2.6
Advanced economies
Euro area 1.8 1.0 1.0
United States 2.9 2.3 1.9
Japan 0.8 1.2 0.5
Germany 1.4 0.7 1.7
United Kingdom 1.4 1.3 1.4
Australia 2.8 1.9 2.5
NIEs = newly industrialized economies of Hong Kong, China; Rep. of Korea; Singapore; and Taipei,China.
Sources: Asian Development Outlook database, September 2019; Consensus Economics for Australia,
August 2019; World Economic Outlook July 2019 for Germany and United Kingdom.
4
 Developing Asia
continues to enjoy steady growth
Real GDP Growth (y-o-y, %)
10 9.3 Developing Asia
Developing Asia excluding NIEs
7.9
8
7.1 7.0 6.8 6.6 6.5 6.6 6.4
6.0 6.0
6

9.2
4
7.3
6.4 6.4 6.4 6.0 6.0 6.2 5.9 5.4 5.5
2

0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Forecast

NIEs = newly industrialized economies of Hong Kong, China; Rep. of Korea; Singapore; and Taipei,China.
Source: Asian Development Outlook database, September 2019.

5
 Priorities and factors
behind the PRC’s growth moderation
Top 3 Government Priorities
1. Heading off financial risks
Economic growth 2. Controlling environmental
% pollution
16 3. Eliminating poverty through
Retails
targeted interventions
12 Sales
Industrial • Cyclical factors
8 Value Added – Reducing excess capacity in
GDP growth
some sectors
– Deleveraging for ensuring financial
4
sector stability
7.8 7.3 6.9 6.7 6.8 6.6 6.8 6.7 6.5 6.4 6.4 6.2
0 • Structural factors
2013 2014 2015 2016 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2
– Rebalancing from investment- to
2018 2019
consumption-driven growth
Source: Haver Analytics and CEIC data company. – Declining working-age population
– Shifting to more advanced
development phase

6
 PRC shifts toward services- and
consumption-driven economy
Demand-side shares in GDP Supply-side shares in GDP
00 100
9.3 7.2

80 80
48.5 53.1
46.5 46.2

60 60
Consumption Agriculture
Investment Industry
40 40 Services
Net Exports
47.9
45.5 44.2 46.6
20 20

0 3.7 1.4 0
2010 2018 2010 2018

Source: Asian Development Outlook database, April 2019.

7
 The role of tourism in economies and jobs
Tourism Receipts (% of GDP) Tourist Arrivals (2017, million)
34.1 People's Republic of China 60.7
Palau 51.1 1386.4
26.3 Thailand 35.6
Vanuatu 29.9 69.2
24.0 Japan 28.7
Fiji 22.5 126.8
16.0 Malaysia 25.9
Samoa 20.1 31.1
14.8 Indonesia 14.0
Cambodia 18.1 264.6
6.4 Singapore 13.9
Thailand 13.7 5.6
8.8 Republic of Korea 13.3
The Pacific 5.9 51.5
7.2 Viet Nam 12.9
Malaysia 5.8 94.6
4.9 Philippines 6.6
Singapore 5.8 105.2
3.0 Cambodia 5.6
Sri Lanka 5.8 16.0
5.2 Myanmar 3.4
Lao PDR 4.6 53.4
4.0 Lao PDR 3.3
Viet Nam 4.0 7.0
0.7 Sri Lanka 2.1
Myanmar 3.4 21.4
2.8 The Pacific 1.6
Philippines 2.7 12.1
2.0 Fiji 0.8
Brunei Darussalam 1.5 0.9
Indonesia 1.8 Brunei Darussalam 0.3
1.4 0.4
Republic of Korea 0.9 Samoa 0.1
1.1 0.2
Japan 0.3 Palau 0.1
0.8 0.0
People's Republic of China 1.3 Vanuatu 0.1
0.3 0.3
0 20 40 60 0 40 80 120 160 200
2005 2017 Tourist Population

Note: The Pacific excludes Nauru and Cook Islands; Data for Palau is Note: The Pacific excludes Nauru and Cook Islands.
from 2016 and for Vanuatu is from 2015.
Source: ADB estimates using data from World Bank, World Development Indicators (accessed 26 July 2019).
8
 Sustainable tourism can support inclusive
growth
• Ensure guidelines and regulations to protect environment and
local communities, and preserve cultural heritage

• Invest in infrastructure for tourism such as airports, railways,

ferries, roads, and Wi-Fi networks

• Build knowledge and skills of tourism professionals

• Improve travel facilitation such as visa free entry for tourists

• Adopt and implement the regional tourism guidelines and

standards
9
 Asian Development Bank (ADB)
• Founded in 1966
- 31 founding members: 19 regional members, 12 non-regional members
- 68 current members: 49 regional members, 19 non-regional members

• Headquartered in Manila, Philippines

• Bonds issued first in Germany (1969), followed by in Austria (1970),

Japan (1970), and the U.S. (1971)

• Main Roles: help developing member countries in Asia and Pacific

through: (i) combining finance and knowledge; (ii) promoting good
policies; and (iii) catalyzing regional cooperation and friendship.

• 3,374 Staff (including international staff 1,242)

10
 Contribution by Members

• Ordinary Capital Resources (capital share, voting power share)

Japan (15.6%, 12.8%), United States (15.6%, 12.8%),
PRC (6.4%, 5.4%), India (6.3%, 5.4%), Australia (5.8%, 4.9%),
Indonesia (5.4%, 4.6%), Canada (5.2%, 4.5%), Korea (5.0%, 4.3%),
Germany (4.3%, 3.8%), others (30.4%, 41.5%)

• Asian Development Fund (cumulative contribution)

Japan (38.1%), United States (13.8%), Australia (7.9%),
Canada (6.0%), Germany (5.7%), United Kingdom (5.0%),
France (4.2%), others (19.3%)

• International Staff (1,242 as of December 2018)

Japan (156), United States (143), India (90), Australia (71), Korea (71),
United Kingdom (71), PRC (66), Canada (51), Philippines (45),
Germany (44), France (42), Pakistan (38), Indonesia (30), others (324)

11
 ADB Operations
• Loans are financed from Ordinary Capital Resources (OCR)
- Middle-income countries (per capita income ≤ $6,795): regular OCR at quasi market rate
- Low-income countries (per capita income ≤ $1,145): concessional terms with long
maturities and low interest rates

• Asian Development Fund (ADF) grants are offered to countries with limited debt
repayment capacity, i.e. Afghanistan, Tajikistan, and Pacific island countries

• Technical assistance includes capacity building, project preparation, and research

(billion USD)

2018 Commitments 2018 Equity

excluding cofinancing Outstanding
OCR (loans) 19.88 106.4 51.0*
Regular 16.01** 77.8
Concessional 3.87 28.6
ADF (grants) 1.42 - 0.7
Technical assistance 0.24
* Including paid-in capital of $7.0 billion and ordinary reserves of $43.4 billion (comprising accumulated retained earnings
($12.7 billion) plus a one-time income ($30.7 billion) in 2017 due to the merger of ADF loan assets with OCR).
** Including other debt securities.
12
 Annual Commitments of Loans and Grants
Ordinary Capital Resources (OCR) and Asian Development Fund Operations (ADF)
($ billion)

21.6
19.7

16.2
14.1 13.9 13.9 13.3
12.3 11.9
9.5

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Commitment is the financing approved by ADB’s Board of Directors or Management and legal agreement has
been signed by the borrower, recipient, or the investee company and ADB. It is the amount indicated in the
investment agreement that may or may not be equal to the approved amount, depending on the exchange
rate at the time of signing.

13
 ADB Operations in 2018
Ordinary Capital Resources (OCR) and Asian Development Fund Operations (ADF)
(commitments in 2018 increased to $21.6 billion from $19.7 billion in 2017)

By Country Health
By Sector ICT
Industry 2% (1%) 0.3% (0.4%)
and Trade
3% (2%)
India 16%
Education
(18%) 8% (4%)
Energy
Others
24% (32%)
31% (25%)
Finance
9% (14%)
PRC 12%
(12%)
Water and
Urban
10% (8%)
Viet Nam Bangladesh
4% (4%) 10% (10%) Transport
Public Sector
23% (25%)
Management
10% (6%)
Pakistan Indonesia
5% (11%) 10% (10%)
Agriculture
Uzbekistan 11% (8%)
5% (6%) Philippines
7% (4%) PRC = People's Republic of China.
Bracketed numbers are from 2017.

14
 ADB Operational Activities
Commitments ($ million)
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Loans and Grants
Sovereign 13,598 8,709 11,339 10,126 13,280 12,019 14,559 11,514 17,408 18,446

Nonsovereign 476 816 945 1,789 668 1,889 1,632 1,750 2,287 3,136
Subtotal 14,073 9,526 12,285 11,915 13,948 13,908 16,191 13,265 19,694 21,581

Technical
Assistance 192 189 140 157 154 146 151 181 201 241

Cofinancing 5,222 3,207 7,633 7,444 6,255 8,787 10,198 12,022 11,922 13,995
Total
Operations 19,488 12,922 20,058 19,516 20,357 22,841 26,540 25,468 31,818 35,817

Notes:
(i) Figures for loans and grants include regular ordinary capital resources (OCR) operations, concessional OCR
loans, and grants from the Asian Development Fund and other special funds. Regular OCR operations include
debt security, equity, and loans.
(ii) Cofinancing amount includes technical assistance cofinancing.
(iii) The 2017 adjusted figure excludes three Afghanistan grant commitments amounting to $405 million resulting
from re-signing of project agreements in 2018 following the resolution to conflicting government decrees on
authorized signing official/agency.
(iv) Numbers may not sum precisely due to rounding.

15
 Organization Chart of ADB (as of July 2019) ADB Institute

Board of Office of the Ombudsperson

Independent Governors Office of the

Auditor General
Evaluation
Department
Board of Office of
Anticorruption & Integrity
Office of the Directors(1)
Compliance Strategy, Policy and
Partnerships
Review Panel
Department
President
- European Representative Office
- Japanese Representative Office
- North American Representative Office

Office of theSpecial
Project Facilitator

Vice President Vice President Vice President Vice President

Vice President Vice President
Knowledge Mgmt. & (Finance & Risk (Administration & (Private Sector &
(Operations 1) (Operations 2)
Sustainable Dev’t) Management) Corporate Mgmt.) PPPs)
South Asia East Asia Sustainable Dev’t. & Controller’s Procurement, Portfolio Private Sector
Department (2) Department (2) Climate Change Dept. Department & Financial Mgmt. Dept. Operations Department

Central & West Pacific Economics Research & Treasury Department Budget, Personnel & Office of Public Private
Asia Department (2) Department(2) Regional Cooperation Mgmt. Systems Dept. Partnership
Dept. Office of Risk
SoutheastAsia Office of Administrative
Management
Department (2) Department of Services
Communications
Office of the Secretary

Office of the General

(1) Board of Directors currently consists of 12 Directors from Australia, Canada, Counsel
PRC, France, Germany, India, Indonesia, Japan, Korea, Malaysia, Philippines and the US
Office of the Information
(2) Under regional departments, 39 field offices located in 39 countries (by end 2019). & Systems Technology
16
 Sector and Thematic Groups

Sector Groups Thematic Groups

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

* Digital Technology Unit as an enabler

17
 Poverty in ADB Developing Member Countries
$1.9/day (2011 PPP) $3.2/day (2011 PPP)
Population Share of Share of
(million) No. of Poverty Developing No. of Poverty Developing
(% of world Poor Rate World Poor Poor Rate World Poor
population)* (million) (%) (%) (million) (%) (%)
1990 2759 (52%) 1,507 54.6 79.7 2,274 82.4 78.2

1999 3172 (53%) 1,231 38.8 71.4 2,241 70.6 73.5

2005 3417 (52%) 875 25.6 65.0 1,942 56.8 70.7

2011 3644 (52%) 497 13.6 52.0 1,495 41.0 65.3

2013 3718 (52%) 348 9.4 43.6 1,267 34.1 61.4

2015 3791 (52%) 264 7.0 36.2 1,100 29.0 57.2

Notes: Refers to 34 developing member countries: Armenia, Azerbaijan, Bangladesh, Bhutan, People’s Republic of China, Fiji, Georgia, India,
Indonesia, Kazakhstan, Kiribati, Kyrgyz Republic, Lao People's Democratic Republic, Malaysia, Maldives, Federated States of Micronesia, Mongolia,
Myanmar, Nepal, Pakistan, Papua New Guinea, Philippines, Samoa, Solomon Islands, Sri Lanka, Tajikistan, Thailand, Timor-Leste, Tonga,
Turkmenistan, Tuvalu, Uzbekistan, Vanuatu, and Viet Nam. For 1990, data are only available for 33 DMCs as data for Maldives are not available.
*Ratio of ADB DMCs population to the world population, which totaled 5,285 million in 1990; 6,038 million in 1999; 6,517 million in 2005; 7,013
million in 2011; 7,183 in 2013; 7,355 in 2015.
Source: ADB estimates based on World Bank’s PovcalNet data (downloaded September 24, 2018).
18
Strategy 2030 Responds to the Region’s
Changing Needs
Vision
Achieve a prosperous, inclusive, resilient, and
sustainable Asia and the Pacific, while sustaining
efforts to eradicate extreme poverty

Value Addition
• Finance
• Knowledge
• Partnerships

Guiding Principles
• Using country-focused approach
• Promoting the use of innovating technology
• Delivering integrated solutions

19
 Strategy 2030: Seven Operational Priorities

Addressing remaining Accelerating progress in Tackling climate change, building climate

poverty and reducing gender equality and disaster resilience, and enhancing
inequalities environmental sustainability
At least 75% of number of At least 75% of number of ADB committed
ADB committed operations operations by 2030, total of $80 billion from
by 2030 ADB’s own resources from 2019 to 2030

Making cities more Promoting rural development Strengthening governance Fostering regional cooperation
livable and food security and institutional capacity and integration

Key Approaches
Expanding private Catalyzing and mobilizing financial Strengthening
sector operations resources for development knowledge services

1/3 of number of ADB $1 in private sector operations financing matched

committed operations by 2024 by $2.50 of cofinancing

20
 Climate Change Targets Under Strategy 2030
• Tackling climate change, building climate and disaster resilience, and enhancing
environmental sustainability
₋ One of seven operational priorities under Strategy 2030
₋ Focus on low greenhouse gas emissions development, building climate and disaster
resilience, environmental sustainability, and water– food–energy security nexus
• Scaling-up ambition for climate change mitigation and adaption by 2030
₋ At least 75% of the number of its committed operations (3-year rolling average)
₋ $80 billion cumulative in climate finance from ADB’s own resources (2019-2030)
₋ Previous target: annual climate financing of $6 billion by 2020
($4 billion for mitigation, $2 billion for adaptation)
$3.6 billion in 2018 ($2.5 billion for mitigation, $1.1 billion for adaptation)
$4.5 billion in 2017 ($3.6 billion for mitigation, $0.9 billion for adaptation)
⁻ Building a framework to align operations with the Paris agreement in collaboration with
other MDBs
• Supporting low carbon and climate resilient growth for DMCs
₋ ADB’s Climate Change Operational Framework 2030 provides broad direction and
guidance for enhancing resilience and strengthening climate actions
₋ NDC Advance supports DMCs to translate their Nationally Determined Contributions
(NDCs) into climate investment plans

21
 Strategy 2030: ADB to Scale-up Support for
Gender Equality in Asia and the Pacific
• Accelerating progress in gender equality
- One of seven operational priorities under Strategy 2030
- Five areas of focus: women’s economic empowerment, gender equality in human
development, gender quality in decision-making and leadership, reduced time
poverty of women, and women’s resilience to external shocks

• Scaling-up ambition by 2030

- At least 75% of the number of its committed operations (3-year rolling average) will
promote gender equality by 2030 (from 65% in 2017)
- Previous target: at least 50% for ADB sovereign operations target women’s
empowerment or gender mainstreaming by 2020

• Gender in ADB
- Women are 59% of all ADB staff and 36.3% of international staff (from 34% in 2016)
- Women are 7 out of 24 (29%) of heads of departments (from 21% in 2016)
- ADB committed to 17 Actions to Improve Institutional Gender Equality (Nov 2016)
- ADB target of % of women international staff is 40% by 2022

22
Strategy 2030: Stronger, Better, and Faster ADB
• Ensure ADB’s robust financial resource base
 Rationalizing internal administrative and operational costs and exploring
various options to generate organic capital

• Improving ADB products and instruments

 Responding to diverse client needs by more effective use of tools
including PBL (Policy-Based Loan), RBL (Results-Based Lending), credit
enhancement products, and local currency financing

• Enhance ADB’s human resources

 Ensuring staff mobility, gender and diversity, respectful workplace,
performance management system

• Maintain a strong country presence

 Advancing “one ADB” approach: further collaboration between private
sector/sovereign operations, knowledge work and public relations
 Strengthening field presence in FCAS (Fragile and Conflict Affected States)
and SIDS (Small Islands Developing States)

• Modernizing business processes and improving operational efficiency

 Enhancing data management, promoting digital transformation
23
 “Asian Century” Scenario
（global GDP composition)

2017 “Asian Century” Scenario（2050）

Middle East & Sub-Saharan Sub-Saharan
Africa Rest of World Rest of World
North Africa Middle East & Africa
4% 2% 2% North Africa 2%
2%
Latin America 3%
& Caribbean Latin America
7% & Caribbean
Asia 10%
32%

North America
North America 13%
26% Asia
52%

Europe
Europe 18%
26%

Asia’s GDP: $26 trillion (market FX rate) Asia’s GDP: $174 trillion (market FX rate)
Asia’s per capita GDP: $6,272 (market FX rate) Asia’s per capita GDP: $36,665 (market FX rate)
Asia’s population: 4.16 billion (55%) Asia’s population: 4.76 billion (52%)
World population: 7.53 billion World population: 9.15 billion
Sources:
Asia 2050: Realizing the Asian Century, a 2011 study commissioned by ADB.
World Bank, World Development Indicators

24
 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.

25
 Asia’s Journey to Prosperity:
Policy, Market, and Technology over 50 Years
1. 50 years of Asian development
2. The role of market, state, and institution
3. Dynamics of structural transformation
4. Modernizing agriculture and rural development
5. Technological progress as key driver
6. Human capital development and demographic change
7. Investment, savings, and finance
8. Infrastructure development
9. Trade, foreign direct investment, and openness
10. Pursuing macroeconomic stability
11. Poverty reduction and income distribution
12. Gender and development
13. Environmental sustainability and climate change
14. The role of multilateral and bilateral development finance
15. Strengthening regional cooperation and integration in Asia
26
Thank you.