Israel Joins ADB: 69th Member of Asian Development Bank

Membership Overview and Process

• Israel becomes the 69th member and 20th non-regional member of ADB
• Membership approved by ADB's Board of Governors in April 2022
• Formal accession ceremony held at ADB headquarters in Manila
• Israeli Finance Minister Bezalel Smotrich to represent the country
• Follows multiple deadline extensions for membership requirements
• Process began with Israel attending ADB meetings as observers since 2017
• Received support from key nations, including France's backing in 2019

Strategic Implications and Benefits

• Enhances Israel's economic and diplomatic relations in Asia
• Opens new investment opportunities and access to development funds

Brings Israeli expertise in key areas:

• • Cybersecurity technology
  • Water management solutions
  • Agricultural innovation
  • Sustainable development practices
• Allows participation in regional infrastructure projects
• Provides platform for broader Asian economic integration
• Access to ADB's loans, technical assistance, and grants
• Opportunity to contribute to regional development initiatives

Challenges and Regional Dynamics

• Concerns raised about potential polarization within ADB
• Tensions with Muslim-majority member nations:
  • Indonesia, Malaysia, Pakistan, Bangladesh, and Brunei don't recognize Israel
  • Current Gaza conflict adds complexity to relationships
• Questions about political implications despite ADB's "apolitical" stance
• Some member countries may shift focus to China-led AIIB
• NGOs raise concerns about ADB's human rights considerations
• Employee code of conduct restricts political involvement
• Challenges in balancing diplomatic sensitivities with economic cooperation

Asian Development Bank Overview

• Established on 19 December 1966, headquartered in Manila, Philippines.
• Has 68 members and 31 field offices worldwide. (Israel new 69^th member)
• Modeled on the World Bank with a weighted voting system.
• Japan and the United States hold the largest proportion of shares at 15.571%.
• Board of Governors is the highest policy-making body.
• Focus areas include: education, environment, climate change, disaster risk management, finance sector development, infrastructure, regional cooperation and integration, private sector lending, and regional cooperation and integration.
• The Private Sector Operations Department (PSOD) supports trade finance and financing billions of dollars in letters of credit.
• Introduced regional cooperation and integration (RCI) by President Kuroda in 2004
• Introduced private sector lending in the Reagan Administration, culminating in the Long Term Strategic Framework (LTSF) adopted by the Board in 2008.