16 May 2006
BIC's Asia Program Manager Mishka Zaman outlines the institution's prioritization of business over poverty reduction in the May 15 issue of Down to Earth magazine.
In an article in the May 15 issue of Down to Earth magazine, BIC Asia Program Manager Mishka Zaman argues that the Asian Development Bank's top priority is staying in business, not poverty reduction.
The institution is facing growing pressure to make lending easier, as competition from other lenders increases. "[The ADB] was recently told by officials from Pakistan, India, the Philippines and China that if they were to continue to borrow from it, the bank would have to provide better service, reduce the 'cost of doing business', and allow for greater flexibility in procedures and lending," Zaman writes.
In an attempt to keep itself afloat, the institution has increasingly scaled back barriers to borrowing. One concerning step has been the institution's recent review of its environment, involuntary resettlement and indigenous people's policies. "Civil society groups worry the bank will buckle under pressure from member governments to 'fast track' project preparation in an effort to make itself more attractive as a lender. They fear ADB will lower standards, make their application more flexible and adopt national policies and systems to govern its projects," she writes. In response, civil society groups have called for more effective embedding of these safeguards in the project cycle.