‘Challenges and implications of Basel II for Asia’; ‘Economic capital management’; ‘Asian economic integration’: ‘Private capital flows and financial market development in Asia’; ‘Unlocking the benefits of securitisation in Asia’s capital market’. These are some of the subjects on the agenda of the 39th Annual Governor’s meeting (AGM) of the Asian Development Bank (ADB) scheduled to take place at Hyderabad from May 3-6. Even a layman can tell that for an institution that proclaims poverty reduction to be its key goal, this agenda is esoteric and not at all in the poverty alleviation line.
Less well known than bodies like the World Bank or the International Monetary Fund, the Asian Development Bank, headquartered in Manila, Philippines, is the third largest source of development finance in the Asia Pacific region. Heavily influenced by non-Asiatic capitalistic powers like the USA, it is a highly secretive and unaccountable institution whose very founding charter of principles frees the bank and its employees from any legal liability to communities, government or individuals for any wrong-doing, material damage or rights violation.
A custodian of private investment and protector of corporate interests, the ADB’s lending policies include imposing policy conditions like privatization and the reform agenda on borrowing countries and facilitating foreign companies to grab lucrative contracts in key sectors. Its much hyped poverty reduction formula boils down to raising GDP at any cost through investment in mega projects that cause large-scale displacement and destruction of livelihoods, both for the vulnerable and marginalized sections, both urban and rural.
Since the year 2000, the ADB AGMs have become occasions for intense protest against the institution’s development policies by people’s movements, project affected communities, NGOs, trade union movements and other progressive bodies.
This year, 97groups from India and other countries have come together under the People’s Forum Against ADB (PFAADB), which will organize a counter-summit at Hyderabad at the same time as the AGM.
The people’s Forum contends that the ADB is deeply anti-democratic with a voting pattern based on shareholding, which ensures a larger stake in decision-making for powerful regional and non-regional members like USA, Canada, Germany, Japan and Australia.
“In this context it is not surprising that the ADB’s purported goal of poverty reduction is mere rhetoric. A Centre For Development Studies report shows that in Kerala just 4 per cent of the total ADB loan was earmarked for poverty alleviation,” says writer C R Neelakandan of the ADB Quit Kerala campaign.
The Forum will organize several parallel events that will focus on the ADB’s functioning and the devastating impact of its projects across Asia. In the Parliamentary Forum on Reclaiming Democracy, elected representatives will discuss accountability and alternative funding for development. Other events will include forums on development and militarisation and a documentary film festival titled Images of Resistance, informed Souparna Lahiri, Convenor, PFAADB.
The Forum contends that the ADB’s model of development is destructive, anti-democratic and anti-poor. It’s message to the government is that it should stop following this development model blindly and explore alternative possibilities of development funding and adopt a participatory, pro-poor and environment-friendly sustainable development pattern, which has a huge potential in India.
BOX:
What you should know about the ADB
– Failure rate of ADB projects is high. In Sri Lanka the figure is 78 per cent.
– Failed ADB projects are responsible for much of the debt burden on borrowing countries.
– The ADB and its staff are not accountable to any country’s legal system.
– The ADB’s voting system is based on shareholding and powerful donor countries control 55 per cent of the votes
– The ADB pays no taxes. Even the salaries of its staff are tax-exempt
– ADB loans, including those, which require changes in national or state law, are approved by the executive, without passing through parliament.
– The promotions of ADB staff depends on making loans, not reducing poverty.
– The ADB releases information entirely at its own discretion, and there is no effective right to information