Israel Joins Asian Development Bank (ADB) as 69th Member Country

In a significant development for international financial cooperation, Israel has become the newest non-regional member of the Asian Development Bank (ADB). The Manila-based lender announced the news on Friday, marking a major step for Israel in enhancing its global strategic ties and economic outreach. Israel officially joined the Asian Development Bank (ADB) as its 69th member and 20th nonregional member, after fulfilling all necessary membership requirements.

ADB Membership Approval and Process

The ADB’s Board of Governors approved Israel’s entry into the bank in April 2022, subject to the completion of membership formalities. This announcement officially cements Israel’s position as the 20th non-regional member of the ADB, expanding the bank’s diverse membership to a total of 69 countries.

According to a statement from the ADB, the decision to admit Israel aligns with the institution’s mission to foster economic development and cooperation across Asia. The approval followed Israel’s application, which was submitted in January 2022.

Israel’s Representation in ADB

The country’s involvement will be represented by Israeli Finance Minister Bezalel Smotrich, according to an insider source from the ADB. As part of this new role, Israel will participate in key financial and developmental discussions alongside other member nations. This development underscores Israel’s desire to expand its influence beyond traditional allies and forge new global partnerships.

ADB’s Global Importance and Key Contributors

The ADB, established in 1966, serves as a major financial institution aimed at promoting social and economic development across Asia and the Pacific. It is owned by its 69 member countries, of which 49 are from Asia and the Pacific, while 20 are non-regional members.

Among the key contributors to the ADB’s capital are Japan and the United States, each contributing more than $22.23 billion to the institution’s funding pool. The inclusion of Israel further diversifies the ADB’s member base, bringing in new perspectives and strategic interests.

Strategic and Economic Implications for Israel

Economists view Israel’s membership in the ADB as part of a larger effort to extend its strategic and economic influence in regions beyond its traditional geopolitical alliances. Speaking to AFP, Victor Abola, an economist from the Manila-based University of Asia and the Pacific, suggested that Israel’s move is designed to create new economic ties across Asia.

By joining the ADB, Israel is positioning itself to take advantage of closer strategic partnerships and trade opportunities with countries in Asia, a region that is increasingly becoming a hub of economic growth and innovation.

Potential Polarisation and Opposition Concerns

While Israel’s entry into the ADB has been welcomed by some, others have raised concerns about the potential for polarisation within the institution. According to Chester Cabalza, a security analyst, Israel’s inclusion in the ADB amid the ongoing conflict in the Gaza Strip could cause tensions within the bank’s membership.

In particular, several Muslim-majority nations in Asia, many of which have been critical of Israel’s policies and handling of the Gaza conflict, may react negatively to Israel’s involvement in the ADB. There is also the possibility that these countries could shift their focus toward the China-led Asian Infrastructure Investment Bank (AIIB) as an alternative financial institution.

Israel’s Role in the Broader ADB Framework

Israel’s entry into the ADB is seen as part of a broader strategy to deepen its economic engagements and enhance its diplomatic presence in Asia. The ADB, as a multilateral financial institution, plays a pivotal role in providing loans, technical assistance, grants, and equity investments to promote social and economic development in the region.

By becoming a member, Israel now has access to the ADB’s development projects and will be able to contribute to discussions around infrastructure development, economic cooperation, and climate resilience in Asia. This not only helps Israel diversify its economic partnerships but also opens the door for potential collaboration on major infrastructure and technology initiatives.

Looking Ahead: What This Means for ADB and Israel

As Israel begins its new role within the ADB, it is likely that both the bank and its member countries will observe the impacts of this membership closely. Israel’s entry brings in new financial and strategic possibilities for Asia-Pacific cooperation. However, as security analyst Cabalza pointed out, the ongoing Middle East tensions could lead to internal divisions within the ADB, especially among its Muslim-majority members.

Nevertheless, Israel’s membership presents an opportunity for greater economic integration between the Middle East and Asia. The participation of Israel in regional development projects may lead to innovations in areas like technology, agriculture, and infrastructure development, sectors in which Israel has significant expertise.