AIR Spotlight, a daily feature on the All India Radio News, brings together various distinguished panelists to discuss significant topics. This can be a valuable resource for individuals preparing for exams like the IAS exam.
In this discussion, we delve into the details of the ‘ADB Meeting and the Key Points from the Finance Minister’s Visit to South Korea’.
Participants:
- Shankar Aiyar, an Economic Analyst
- Rajesh Lekh, an AIR Correspondent
Background
The Indian delegation, led by the Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, attended the 56th Annual General Meeting of the Board of Governors of the Asian Development Bank (ADB) in South Korea from May 2-5, 2023.
Introduction
The Annual Meeting of the Asian Development Bank (ADB) Board of Governors is a platform to discuss ADB's administrative, financial, and operational directions. It is an opportunity for member governments to interact with various stakeholders, including ADB staff, NGOs, media, representatives of observer countries, international organisations, academia, and the private sector. The meetings have become a key forum for discussing economic and social development issues in Asia and the Pacific.
Key Focus of the Finance Minister in the ADB Meeting
With the global economy's centre of gravity shifting to Asia, India, currently the fifth-largest economy, is poised to become the fourth-largest soon. The 56th Annual General Meeting of the ADB is a platform to present India's perspective on geopolitical issues, climate change, and financing modes.
Post-Pandemic Shift from Global to Domestic and Regional Value Chains
The COVID-19 pandemic has triggered a shift from global to domestic and regional value chains. The trade war between China and the U.S. and the COVID-19 pandemic have underscored the need for companies to diversify their supply chains away from China. This has given rise to the “China plus one” strategy, where multinational firms are expanding to other countries, in addition to China.
Digital Public Infrastructure (DPI)
The Finance Minister emphasized the need for infrastructure, investment, innovation, and inclusivity for sustainable long-term growth for both advanced and developing economies during the ‘Governors’ Seminar: Policies to Support Asia’s Rebound’. She also highlighted the role of India's digital public infrastructure in facilitating timely conditional cash transfers during the pandemic.
ADB’s Innovative Finance Facility for Climate in Asia and Pacific (IF-CAP)
In response to climate change financing requirements, the ADB launched its newest climate finance program: the Innovative Finance Facility for Climate in Asia and the Pacific (IF-CAP). The program will use guarantees from partners to accelerate billions of dollars in much-needed climate change investment.
Conclusion
As a multilateral development finance institution, the ADB provides loans, technical assistance, and grants to its developing member countries. It also offers direct assistance to private enterprises of developing member countries through equity investment and loans. The ADB has the potential and opportunity to fund innovative financing for climate change and the transition from fossil fuels to renewables.
| Related Links | |||
| Multilateralism and G20 under India’s Presidency | List of G20 Summits | ||
| G20 | DigiLocker | ||
| Multilateralism | India-Pakistan Relations | ||
