Asia Development Bank Agreement

The idea came up again in 1962 when Kaoru Ohashi, an economist at a research institute in Tokyo, visited Takeshi Watanabe, then a private financial advisor in Tokyo, and proposed a study group for the creation of a development bank for Asia. The group met regularly in 1963, examined different scenarios for the creation of a new institution, and drew on Watanabe`s experience with the World Bank. However, the idea was coldly welcomed by the World Bank itself and the task force was discouraged. The bank`s headquarters are located in 6 ADB Avenue, Mandaluyong, Metro Manila, Philippines,[15] and has 31 field offices in Asia and the Pacific, as well as representative offices in Washington, Frankfurt, Tokyo and Sydney. The Bank employs about 3,000 people, representing 60 of its 68 members. [16] In 1966, intensive work was put in place to prepare for the opening of the new bank in Manila, and the election of the president was at the top of the agenda. Japanese Prime Minister Eisaku Sata has asked Watanabe to run. Although he initially refused, the pressure came from other countries and Watanabe agreed. In the absence of other candidates, Watanabe was elected the first President of the Asian Development Bank at its constituent session on 24 November 1966. The Bank has been criticized for its role and relevance in the food crisis. The ADB has been accused by civil society of ignoring and contributing to the warnings that triggered the crisis by imposing credit conditions, many of which say they are unfairly putting pressure on governments to deregulate and privatize agriculture, creating problems such as rice shortages in Southeast Asia. [55] In 1956, Japanese Finance Minister Hisato Ichimada proposed to U.S.

Secretary of State John Foster Dulles that development projects in Southeast Asia could be supported by a new financial institution for the region. A year later, Japanese Prime Minister Nobusuke Kishi announced that Japan will support the creation of a regional development fund with funds mainly from Japan and other industrialized countries. But the United States did not warm up for the plan and the concept was frozen. See full account in Banking on the Future of Asia and the Pacific: 50 Years of the Asian Development Bank, July 2017. As a major player in the concept, Japan hoped that the ADB offices would be in Tokyo. But eight other cities had also expressed interest: Bangkok, Colombo, Kabul, Kuala Lumpur, Manila, Phnom Penh, Singapore and Tehran. The decision was taken by the 18 potential regional members of the new Bank at a ministerial conference in Manila in November/December 1965. In the first round, on November 30, Tokyo failed to win a majority, so a second round was held the next day at 12 o`clock. Although Japan was in the lead, it has still not been successful, so a final vote took place after lunch. In the third poll, Tokyo won eight votes against, with one abstention. Manila has therefore been declared the host of the new development bank.

The Japanese were confused and deeply disappointed. Watanabe later wrote to the ADB: “I felt that the child I had so carefully raised had been taken to a faraway land.” (Asian Development Bank publication, “Towards a New Asia,” 1977, p.