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<h3><span style="color:#941100">ADB’s Rebounding Asia, a just approach to development is overlooked</span><o:p></o:p></h3>
<p>Last May 2 to 5 in Incheon, South Korea, the Asian Development Bank held their 56th Annual Meeting with the theme, “Rebounding Asia: Recover, Reconnect and Reform”. Attended by representatives from the bank, member country governments, multilateral institutions,
private sector and civil society, the meeting discussed how to address pertinent challenges in the Asia-Pacific region. The various sessions discussed ADB and their private sector partners’ approach in pursuing the just energy transition, digital transformation,
food security, debt sustainability and innovative financing. <br>
<br>
At the sidelines of the Annual Meeting, Reality of Aid-Asia Pacific, together with its members and partners, convened to develop a
<a href="https://realityofaid.org/cso-collective-statement-56th-agm/">CSO Collective Statement</a> and dialogue with ADB officials and other development actors, in order to amplify the demands of the region’s marginalized. With key messages encompassing unequal
financing modalities, corporate capture of development, just energy transition and safeguards, the statement highlights how the bank has yet to demonstrate its commitment to a just, inclusive and sustainable development for all.
<br>
<br>
In an era of recovery and transitions from multiple crises, the 56th Annual Meeting of the ADB failed to tackle the bank’s potential role in exacting justice and accountability in addressing long-standing development challenges and the impacts on the region’s
marginalized. <br>
<br>
<b>Ending debt dependencies and distress </b><br>
In the CSO Collective Statement, civil society called on the bank to cancel debts, end policy conditionalities and abandon financing modalities that further widen inequalities and impoverish states. During the Annual Meeting, President Masa responded to the
statement, highlighting how canceling debts would affect ADB’s good credit rating and lending operations in the region.
<o:p></o:p></p>
<p>The bank fails to acknowledge its role in contributing to developing countries’ “chronic indebtedness,” as they continue to give onerous loans and impose conditionalities. Furthermore, through these lending and structural adjustment programs by IFIs, they
<a href="https://csoforffd.org/2023/04/27/thematic-brief-launch-debt/">continue to replicate the unequal power and economic relations between the global North and South</a>, which have created the need for developing countries to increasingly lend to fund their
development. <br>
<br>
At the same time, while the ADB has pledged to mobilize a total of USD 100 billion of climate finance by 2030, a closer look reveals that
<a href="https://www.adb.org/news/infographics/climate-finance-2022">95% of this funding is given in the form of loans and invested towards mitigation efforts</a>. As it is currently off-track to reach its ambitious target, the ADB launched the Innovative Finance
Facility for Climate in Asia and the Pacific (IF-CAP) during the Annual Meeting, a multi-donor financing facility that will provide guarantees for parts of the Bank’s sovereign portfolios to enable it to free up capital and increase loans for climate investments.
CSOs have raised alarm on the IF-CAP as it will <a href="https://iboninternational.org/2023/05/04/adbs-loans-will-sink-frontline-communities-in-deeper-debt-statement-on-the-launch-of-adbs-if-cap/">
“sink frontline communities in deeper debt,”</a> as they are burdened with additional loans to fund adaptation and mitigation projects and enables donor countries and corporations to abandon their role in financing the climate crisis they caused.
<br>
<br>
While IFIs have reiterated the urgency to ‘evolve’ to address the crises the world faces today, it has continued to adopt the same approach to development – putting profit over people and the environment. Modalities for financing for development initiatives
must be anchored on the framework of justice. Donor countries must meet their historical commitment to provide 0.7% of their Gross National Income (GNI) for Official Development Assistance. IFIs must cancel debt and provide grants to enable governments to
provide essential goods and services and effectively respond to emerging crises. Climate finance must be provided in grants, channeled to adaptation projects and not to false, market-based solutions. The ADB should stop the corporate capture of development
and instead, promote the use of public resources and democratically-owned systems to ensure access.
<br>
<br>
<b>Just peace for conflict-affected, fragile states </b><br>
As the Asia-Pacific region faces increasing conflict, development actors must adapt its operations to provide immediate assistance, facilitate long-term development and ensure long-lasting peace. However,
<a href="https://realityofaid.org/wp-content/uploads/2021/07/Deep-Dives-Cashing-in-on-Conflict.pdf">
the bank and its partners have allowed for attacks on communities and civil society</a>, with continued financing for corrupt, authoritarian regimes and lack of robust safeguards that will prevent or mitigate reprisals and retaliations for affected peoples.
<br>
<br>
In this context, the bank passed its FSA or fragile and conflict affected states (FCAS) and small island developing states (SIDS) approach. While the FSA adopts a ‘context-specific tailored support’ for these states, there is a need for the bank to adopt the
Triple Nexus approach, incorporating humanitarian, development and peace initiatives to address the root cause of conflict. As the bank hopes to mobilize additional financing for FCAS and SIDS, these should be invested into projects and assistance that will
contribute to long-lasting, just peace. <br>
<br>
Furthermore, the bank must adopt and align operations with international human rights standards and environmental principles in all countries, especially in fragile states. The ADB should also incorporate civil society demands for a zero tolerance policy against
reprisals in its new Safeguards Policy, foster an enabling environment for civil society, and provide effective grievance redress mechanisms to ensure rights are protected and upheld.
<br>
<br>
<b>Ensuring effective development for all</b><br>
The <a href="https://www.adb.org/documents/development-effectiveness-review-2022-report">
2022 Development Effectiveness Review</a> was also launched during the Annual Meeting, highlighting ADB’s progress in achieving its strategic priorities. While the bank claims that it has
<a href="https://www.adb.org/sites/default/files/publication/42585/global-partnership-effective-development-cooperation.pdf">
incorporated the development effectiveness principles</a> of democratic country ownership, focus on results, inclusive partnerships and mutual transparency and accountability across its operations, the
<a href="https://realityofaid.org/asian-development-bank-misshaping-development-cooperation-and-effectiveness-in-asia-pacific-a-cso-review-of-adbs-development-effectiveness/">
essence of these principles are not captured in the bank’s frameworks, strategies and approaches</a>.
<br>
<br>
Democratic country ownership translates into development priorities that genuinely reflect the needs and determined by the people, which are determined through inclusive and participatory processes. The principle of focus on results ensures that development
projects do not adversely impact the people and the environment, but contribute to inclusive and sustainable development for marginalized sectors and communities.
<br>
<br>
Inclusive partnerships can be attained by assigning a principal role to communities in the identification, definition, implementation and evaluation of development projects. In order to facilitate a just and equitable energy transition, the bank must contribute
in cushioning adverse impacts on the workers and other affected sectors. Consultation and planning of projects must include the voices of vulnerable communities, such as Indigenous Peoples, farmers, fisherfolk, workers, rural women and children, and urban
poor, who continue to be the most impacted by development projects. The bank’s meetings should also provide spaces for civil society and communities to highlight their perspectives and to shape the bank’s operational directions.
<br>
<br>
Lastly, communities and civil society should be provided full disclosure of information on projects, especially on the possible impacts of these on affected peoples. The bank should also exercise significant oversight over its partners’ activities to ensure
transparency and accountability. <br>
<br>
As a major development actor in the Asia-Pacific region, the ADB has a critical role in responding to the world’s crises today. In the same manner, it must also be held accountable for its role in contributing to worsening poverty, deeping inequalities, harmful
conflict and environmental degradation, which have long-standing and irreversible impacts on marginalized sectors and communities. If the ADB is truly committed to calling itself a climate and development bank, it must provide financing and adopt approaches
from the lens of justice. <o:p></o:p></p>
<p><i>Link to the full article: <a href="https://realityofaid.org/adb-agm-just-approach-to-devt/">
https://realityofaid.org/adb-agm-just-approach-to-devt/</a> </i><o:p></o:p></p>
<p>***<o:p></o:p></p>
<p>Read / watch the other releases of RoA-AP for the ADB Annual Meeting:<o:p></o:p></p>
<ul type="disc">
<li class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;mso-list:l0 level1 lfo3">
<a href="https://realityofaid.org/cso-aid-observatorio/">CSO Aid Observatorio</a><o:p></o:p></li><li class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;mso-list:l0 level1 lfo3">
<a href="https://realityofaid.org/adb-projects/">Monitoring of ADB Projects</a> <o:p>
</o:p></li><li class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;mso-list:l0 level1 lfo3">
<a href="https://realityofaid.org/cso-aid-observatorio/the-platform/narratives/data-stories/unjust-energy-transition/">Data Story: Ushering in an unjust energy transition
<br>
</a><o:p></o:p></li><li class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;mso-list:l0 level1 lfo3">
<a href="https://realityofaid.org/cso-aid-observatorio/the-platform/narratives/cso-campaigns/disclosing-realities/">CSO Campaign: Disclosing Realities, Safeguarding People's Rights</a><o:p></o:p></li><li class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;mso-list:l0 level1 lfo3">
<a href="https://realityofaid.org/cso-collective-statement-56th-agm/">CSO Collective Statement for the 56th ADB Annual Meeting</a><o:p></o:p></li><li class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;mso-list:l0 level1 lfo3">
<a href="a%20hundred%20CSOs%20demand%20%20%20%20%20%20%20%20%20%20people-centered%20solutions%20over%20intersecting%20economic,%20%20%20%20%20%20%20%20%20%20development%20and%20climate%20challenges">Press release: More than a hundred CSOs demand people-centered
solutions over intersecting economic, development and climate challenges</a><o:p></o:p></li><li class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;mso-list:l0 level1 lfo3">
<a href="https://twitter.com/realityofaidAP">ADB Annual Meeting Video Recaps</a><o:p></o:p></li></ul>
<p>To stay updated with our recent releases and publications, go <a href="https://roanetwork.carrd.co/">
here</a>!<o:p></o:p></p>
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<p class="MsoNormal">-- <br>
APRCEM is a civil society platform aimed to enable stronger cross constituency coordination and ensure that voices of all sub-regions of Asia Pacific are heard in intergovernmental processes in regional and global level. The platform is initiated, owned and
driven by the CSOs, and seeks to engage with UN systems and Member States on the sustainable development issues/processes. As an open, inclusive, and flexible mechanism, RCEM is designed to reach the broadest number of CSOs in the region, harness the voice
of grassroots and peoples’ movements to advance development justice that address the inequalities of wealth, power, resources between countries, between rich and poor and between men and women.<br>
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