KfW's engagement in Asia

Germany participated in the establishment of Asian Development Bank (ADB) in 1966 and is now its largest European shareholder with 4.3% of the capital. Together with its subsidiaries DEG, KfW IPEX-Bank and KfW Development Bank, KfW Group has been involved in Asia for many decades and has cooperated closely with ADB on many occasions.

ADB, which has its headquarters in Manila (Philippines), is currently the biggest multilateral development financing institution in Asia. It plays a key role in financing sustainable development in the APAC region’s developing and emerging countries. Regional development banks like ADB work together to promote the regional member states’ economic development by providing financial aid, advice and technical support. But what essentially sets these institutions apart from the World Bank – the global development bank – is the fact that most of the capital shares are held in the regional member states. This guarantees that these countries’ interests are represented in an ideal way. ADB has 67 member states in total, 48 of which are located in Asia and 19 of which are in Europe and North America. Germany is one of ADB’s founding members and is its largest European shareholder with 4.33%. In addition to its headquarters in Manila, ADB has 31 country offices.

Development in Asia is more diverse than on any other continent: China and India have been key global players on the international economic and political stage for quite some time. Economic progress in the region, on the other hand, has not been of much benefit to other countries like Mongolia, Nepal or Tajikistan. While Asia as a whole is very economically dynamic and has high rates of growth, most of its population is still considered very poor. Even though poverty rates are declining in East Asia overall – which can be primarily attributed to China's economic success, there are still more than 700 million people living in absolute poverty in Asia, which represents roughly two-thirds of all people in absolute poverty around the world.

KfW Development Bank works with many countries in Asia on behalf of the German Federal Government to fight poverty and climate change and protect the environment: these efforts include increasing the use of renewable energy sources and preserving biodiversity. Support is provided for efficient financial institutions that help small and medium-sized enterprises create jobs. In countries affected by conflict and crisis, KfW is active in conflict prevention and peacekeeping and provides support for "good governance". KfW Development Bank pledged a total of EUR 1.7 billion to Asian countries in 2013.

KfW Development Bank's engagement in Asia

As of December 2018

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