MEANING & FUNCTIONS OF VARIOUS REGIONAL DEVELOPMENT BANKS

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MASTER OF COMMERCE – M.Com First Year (IBO) Solved Assignments for July 2019 and January 2020 Admission Cycles

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Course Code : IBO – 01
Course Title : International Business Environment
Assignment Code : IBO-01/TMA/2019-20

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IBO – 01 International Business Environment Solved Assignment for 2019-20

Q3.)(b) Explain the functions of various Regional Development Banks.

Ans: The Regional Development Banks are international institutions which are founded in the 1960s. The Regional Development Bank (RDB) are multilateral financial institutions that provide financial and technical assistance for development in low-and middle-income countries within their regions. Finance is allocated through low-interest loans and grants for a range of development sectors such as health and education, infrastructure, public administration, and environmental and natural resource management. 

FUNCTIONS OF VARIOUS REGIONAL DEVELOPMENT BANKS : The main goal is to fight poverty. They promote sustainable economic and social development in member countries. To this end, they provide loans and non-repayable grants for investments in the public sector and for private sector promotion.In addition to various loans, they provide member stated with technical assistance to help them implement their measures.

The term RDB usually refers to these institutions:

• Asian Development Bank (ADB)
• Inter-American Development Bank (IDB)
• African Development Bank (AfDB)

ASIAN DEVELOPMENT BANK (ADB) : Asian Development Bank (ADB) was established on Dec.19, 1966. The aim of this bank was to accelerate economic and social development in Asia and pacific region. The bank started its functioning on January 1, 1967. Its head quarter is located at Manila, Philippines. Its chairmanship is always given to Japanese and 3 deputy chairmen belong to USA, Europe and Asia.

FUNCTIONS OF ASIAN DEVELOPMENT BANK :

1. To make loans and equity investments for economic and social development of its developing members countries.
2. To provide for technical assistance for the preparation and implementation of development projects and advisory services.
3.  To respond to the request for assistance in coordinating developmental policies and plans in developing member countries.
4. This bank constituted Asian Development Fund in 1974, which provides loans to Asian countries on concessional interest rates.

INTER-AMERICAN DEVELOPMENT BANK : The Inter-American Development Bank (IDB) is a cooperative development bank founded in 1959 to accelerate the economic and social development of its Latin American and Caribbean member countries. It is owned by a total of 48 member countries, including the U.S. and some European nations. The bank provides financing in the form of loans and grants.

AFRICAN DEVELOPMENT BANK: The African Development Bank Group (AfDB) or Banque Africaine de Development (BAD) is a multilateral development finance institution. The AfDB was founded in 1964 and comprises three entities: The African Development Bank, the African Development Fund and the Nigeria Trust Fund. The AfDB's mission is to fight poverty and improve living conditions on the continent through promoting the investment of public and private capital in projects and programs that are likely to contribute to the economic and social development of the region. The AfDB is a financial provider to African governments and private companies investing in the regional member countries (RMC). While it was originally headquartered in Abidjan the bank's headquarters moved to Tunis, Tunisia, in 2003, due to the Ivorian civil war; before returning in September 2014.