[Congressional Record Volume 142, Number 139 (Tuesday, October 1, 1996)]
[Senate]
[Pages S12060-S12061]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         ASIAN DEVELOPMENT BANK

  Mr. PRESSLER. Mr. President, I would like to take a moment to commend 
the Asian Development Bank [ADB] for its role in the growth and 
continuing prosperity in Asian and Pacific developing countries. 
Further, I urge the ADB to involve our Nation's small business 
community in efforts to further prosperity in this part of the world. 
The economic and social evolution underway in Asia has taken place at 
an incredible rate over the past decade. The ADB is playing an 
important role in this development, providing funds to improve and 
strengthen Asia's infrastructure.
  As my colleagues know, the Asian Development Bank was founded in 1966 
to function as an international development finance institution for the 
Asian and Pacific region. Headquartered in Manila, in the Philippines, 
the ADB had 56 member countries--40 within the Asian and Pacific region 
and 16 from outside the region--as of March 31, 1996. The ADB is 
engaged in promoting the economic and social progress of the Asian and 
Pacific region. Development banks in the world today with similar roles 
include the Inter-American Development Bank, the World Bank, and the 
African Development Bank.
  Specifically, the ADB extends low interest loans to fund special 
projects in Asian and Pacific developing countries. The ADB finances 
infrastructure projects such as power plants, roads, bridges, and other 
ventures which have a strong impact on the designated area. This kind 
of financial support is critical to further the dynamic growth of Asian 
economies--growth that presents tremendous opportunities for U.S. 
businesses. Established businesses in the United States, such as AT&T 
and Price Waterhouse, as well as smaller agricultural firms, such as 
Seminole Fertilizer Corp., benefit greatly from the 

[[Page S12061]]

exponential growth and progress of Asia. I encourage the ADB to seek 
opportunities for greater participation by U.S. small businesses as 
part of its future projects. The ADB assists private enterprises in 
undertaking financially viable projects which also have significant 
economic development merit and catalyzing the flow of domestic and 
external resources to such projects. For example, the bank allocated 
over $3.3 billion to develop telecommunications services in Asia's 
poorest areas and will invest almost $1 billion on telecommunications 
networks in India alone.

  The ADB also provides loans, equity investments, and technical 
assistance, and also cofinances projects with bilateral and 
multilateral agencies as well as export credit and commercial sources. 
As of June 30, 1995, the bank had approved $51.9 billion in loans for 
1,236 projects in 34 countries and $3.9 billion for 3,539 technical 
assistance grants.
  As a donor member, the United States has contributed to the Asian 
Development Fund [ADF], which is the ADB's window for concessional 
lending to its borrowing member countries. Each year, ADB extends loans 
to fund projects and activities in Asian and Pacific developing 
countries, and provides several billion U.S. dollars worth of contracts 
to procure goods and consulting services. In 1995, the United States 
ranked first among donor member countries in total procurement, with a 
donor amount of $333 million dollars. The ADF, which is crucial to the 
bank's ability to grant loans, is the ADB's main soft-loan program. 
This soft-loan program lets donor countries apply for grants at a 
generous interest-free level, which makes it feasible for many poor 
countries to apply and receive loans to improve their environment, 
transportation, infrastructure, and communications.

  A country that requests an interest-free loan from the ADF must 
fulfill requirements set by the ADB. The ADB stresses that the member 
countries have good governance which will permit a successful 
management of the development process, which encourages economic and 
political stability in the region. As a development partner, the ADB 
has a clear and direct interest in the capacity of borrowing 
governments to fulfill their economic role by implementing the 
associated policies. The success of the ADB's project investments 
depends on the efficacy of the institutional framework in development 
member countries [DMC]. In addition, governments are expected to 
perform certain key functions, including maintaining macroeconomic 
stability; developing infrastructure; providing public goods; 
preventing market failures; and promoting equity. Without macroeconomic 
stability, business prospects are uncertain and investment risks are 
high.
  Further, the bank advises the developing countries regarding human 
rights, social and environmental policies, and other areas before 
accepting the country for a grant.
  Mr. President, the replenishment of the ADF has been a ongoing 
problem. At present, ADF is expected to run out of money by year-end. 
In that respect, the ADB, along with other development banks, have been 
trying to arrange financing through private financial institutions. 
Multilateral agencies, such as ADB, likely will shift more funding to 
socially-oriented projects in the future, and have vast projects 
financed by private financial institutions.
  The ADB has confronted and overcome many challenges, thanks to the 
efforts of its leadership. I would like to commend the diligent efforts 
of Ambassador Yang of the Asian Development Bank. Former California 
Savings and Loan Commissioner Linda Tsao Yang of Davis, CA, is the U.S. 
ambassador on the 12 member board of executive directors of the ADB. 
Ms. Yang has operated her own financial consulting firm since stepping 
down from the State S&L post in 1982. Her expertise during these 
challenging times is certainly welcome at the ADB.

  I may not always agree with the bank's direction on a specific issue, 
but the overall direction of the ADB has been positive. Ambassador Yang 
is aggressively pursuing creative roles for the ADB to play in a manner 
which advances our Nation's commercial interests in that part of the 
world. Thanks in part to these creative efforts, the Asian continent is 
an exciting and promising region of the world for the residents and for 
those playing a part in its development.

                          ____________________