ADB - Executive SummaryADB - Executive Summary
Openness to and Restriction on Foreign Investment
The Asian Development Bank (ADB) reported (https://www.adb.org/news/infographics/foreign-direct-investments-and-trade-trends-asia-and-pacific) in 2015 that Asia and the Pacific continues to be the world's top destination for foreign direct investment (FDI), which reached $527 billion or nearly 30% of the world total. ADB further states that trade and FDI are key drivers of growth and prosperity in the region. Although supportive of its borrowing countries in attracting, facilitating, and retaining FDI, and in maximizing positive FDI spillover effects on the local economy, ADB is not prescriptive with regard to borrowing country policies.Each country sets its own laws on FDI, and each ADB-funded project is structured in accordance with those laws. Some developing member countries limit foreign ownership of key aspects of the project, or reject foreign ownership if the investment is deemed inconsistent with national security, economic development, or other national interest objectives. To learn about the FDI laws in countries of interest to your firm see the “Openness to and Restrictions upon Foreign Direct Investment” section of each country’s Country Commercial Guide (https://www.export.gov/ccg).
Conversion and Transfer Policies
ADB Project Procurement: Bidding documents shall state the currency or currencies in which bidders are to state their prices, the procedure for conversion of prices expressed in different currencies into a single currency for the purpose of comparing bids, and the currencies in which the contract price will be paid. (Procurement Regulations for ADB Borrowers, October 2017)To learn the nuances of the borrowing countries’ restrictions and policies on conversion and transfer policies, see the “Conversion and Transfer Policies” sections of each country’s Country Commercial Guide (https://www.export.gov/ccg). Know more about options in insuring against currency inconvertibility review the products offered by the U.S. Government’s Overseas Private Investment Corporation (https://www.opic.gov/.
ADB Institutional Procurement: The Asian Development Bank (ADB) pays its consultants as well as suppliers of goods, works and services for its own headquarters and resident mission offices in freely convertible currencies stated in the contract.
ADB Assistance to Private Sector: Asian Development Bank loans and equity investment for private sector firms are usually in U.S. Dollar or in freely convertible currencies as provided in the contract.
Expropriation and Compensation
The Asian Development Bank (ADB) honors and is not prescriptive on the expropriation and compensation laws of its borrowing countries. Nevertheless, ADB notes the deleterious effects of abusive expropriation on economic development. To learn about policies regarding expropriation in countries of interest to your firm see the “Expropriation and Compensation” section of each country’s Country Commercial Guide (https://www.export.gov/ccg)Dispute Settlement
ADB Project Procurement: The Asian Development Bank (ADB) strongly suggests its borrowers to include in its contracts a clause for dispute settlement and recommends international commercial arbitration over other methods of dispute settlements. In case of works contracts, supply and installation contracts, and turnkey contracts, the dispute settlement provision shall also include mechanisms such as dispute review boards or adjudicators, which are designed to permit a faster dispute settlement.ADB shall not be named an arbitrator or be asked to name an arbitrator.
To learn about dispute settlement mechanisms in countries of interest to your firm see the “Dispute Settlement” section of each country’s Country Commercial Guide (https://www.export.gov/ccg).
ADB Institutional Procurement: Within 30 days of dispute notice, the user unit in consultation with ADB’s Office of Administrative Services (OAS) - Contracts Administration Unit, and the supplier's or contractor’s personnel directly involved should first attempt in good faith to settle the dispute among themselves before escalating it to the Director, Institutional Services Division of OAS (OAIS) and Principal Director), OAS and their respective counterparts.
After the initial 30-day-period, the Parties shall consider referring unresolved disputes to mediation, unless ADB considers the dispute not suitable for mediation or the supplier/contractor does not concur. The Parties shall appoint a neutral mediator from a reputable association of accredited mediators or their own short-list of dispute resolution professionals. The mediator shall formulate a simplified procedure for mediation and complete the mediation within 15 days from his appointment.
Should dispute resolutions under the preceding paragraphs fail, either party shall begin arbitration by sending notice to the other party stating in detail the issue to be resolved and that the dispute shall be referred to arbitration. The International Chamber of Commerce's Rules of Arbitration (http://www.iccwbo.org/) in force upon commencement of arbitration shall apply. Governed by Philippine law, the arbitration shall be in the English language, and shall take place in Manila. Each party shall pay its own costs.
ADB Assistance to Private Sector: Private companies are responsible for managing their ADB-assisted projects; hence, dispute settlement among private firms (including prime and subcontractors) are governed by the sovereign laws of the country where the project is implemented.
Allegations of fraud and corruption should be reported to Asian Development Bank’s Office of Anticorruption and Integrity (OAI) (https://www.adb.org/site/integrity/main). The OAI ensures that funds entrusted to ADB are not misused.
Protection of Property Rights
The Asian Development Bank (ADB) advises its developing member countries of the significance of solid protections of property rights, and of the harmful effects that poor protections have on development. Nevertheless, ADB is not prescriptive with regard to borrowing countries’ policies on protection of property rights. To learn about policies regarding protection of property rights in countries of interest to your firm see the “Protection of Property Rights” section of each country’s Country Commercial Guide (https://www.export.gov/ccg).Transparency of the Regulatory System
The Asian Development Bank (ADB) advises its developing member countries of the importance of transparent regulatory systems, and of the deleterious effects a lack of transparency has on development. However, ADB is not prescriptive with regard to borrowing countries’ regulatory systems. To learn about the transparency of regulatory systems in countries of interest to your firm see the “Transparency of the Regulatory System” section of each country’s Country Commercial Guide (https://www.export.gov/ccg).Efficient Capital Markets and Portfolio Investment
The Asian Development Bank (ADB) enjoys an AAA credit rating with a strong capital position and conservative capital management practices. An AAA rating permits ADB to borrow funds at lowest rates available in the international capital markets. Sovereign borrowers have benefited from the lowest possible pricing on long-term loans funded through these borrowings because of ADB’s cost pass-through pricing policy. To retain this rating, ADB maintains an adequate amount of capital and ensures its capital is protected from market fluctuations in interest rates and foreign exchange values.The Ordinary Capital Resources (OCR) is the largest part of ADB’s capital base, usually used to provide loan assistance for development projects. OCR includes the authorized and subscribed capital stock (shareholder capital, both paid-in and callable); resources raised through borrowings; funds received in repayment of loans or guarantees and from divestment of equity investments; income derived from loans, guarantees, and equity investments; and other funds or income received by ADB that are not part of the Special Funds resources.
In 2017, authorized and subscribed capital reached $152 billion and $151 billion, respectively.
Risk management at ADB is fostered on three pillars: governance, policies, and processes. Governance begins with the Board of Directors, playing a key role in reviewing and approving risk policies that set ADB’s risk tolerance levels. ADB also has an independent risk management group to independently quantify and monitor risk.
To learn about the functioning of capital markets in countries of interest to your firm see the “Efficient Capital Markets and Portfolio Investment” section of each country’s Country Commercial Guide (https://www.export.gov/ccg).
Competition from State-Owned Enterprises
In 2014, the Asian Development Bank (ADB) reported that engaging the private sector through public-private partnerships and privatization improves the performance and service delivery of state-owned enterprises (SOEs) (https://www.adb.org/sites/default/files/publication/42836/finding-balance-2014.pdf).SOEs generally provide utilities, infrastructure, and banking services, and absorb a substantial amount of public investment. ADB works with developing member governments so that SOEs provide better services and generate a positive return on government investment.
To learn about policies regarding competition from SOEs in countries of interest to your firm see the “Competition from State-Owned Enterprises” section of each country’s Country Commercial Guide (https://www.export.gov/ccg).
ADB Project Procurement: The new ADB procurement policy has no explicit prohibition on SOE participation to bid on ADB-funded contracts and consulting services.
ADB Institutional Procurement: SOEs are not prohibited from registering as a supplier to the Supplier Management System (https://uxdmz06.adb.org/OA_HTML/adb/xxsms/jsp/Login.jsp?subTab=Y) and to compete for contracts in ADB’s own institutional procurement.
ADB Assistance to Private Sector: The Private Sector Operations is not precluded from entering into financial arrangements with SOEs.
Political Violence
According to Asian Development Bank (ADB), many poor people in Asia and Pacific live in countries with weak governance, ineffective public administration/rule of law, and civil unrest; these countries have been denoted to as countries in fragile and conflict-affected situations (FCAS) (https://www.adb.org/sites/default/files/institutional-document/33774/files/working-differently-conflict-affected-situations.pdf).
Countries in FCAS have bleak access to loans/capitalization. To address this, ADB offers political risk guarantees to lenders of most forms of debt. These comprise commercial bank loans, loans made by shareholders, loans guaranteed by shareholders or third parties, capital market debt instruments, bonds, financial leases, letters of credit, promissory notes, and bills of exchange.
This political risk guarantees protect a lender against a borrower’s inability to service guaranteed debt as a result of physical damage to a project’s assets, or an interruption in a borrower’s business activities, as a result of war, revolution, insurrection, terrorism, or other politically motivated acts.
ADB’s guarantee product is usually in financial services and capital markets (e.g., banking, leasing, insurance, and funds); and infrastructure (e.g., power, transportation, water supply and waste treatment, and telecommunications). However, ADB may consider other sectors on a case-by-case basis.
To know more about the presence or level of political violence in countries of interest to your firm check the “Political Violence” section of each country’s Country Commercial Guide (https://www.export.gov/ccg).
For up-to-date information on political and security conditions in countries of interest to your firm, please refer to the State Department (http://www.travel.state.gov/) Consular Bureau’s Travel Warning and Country Specific Information. U.S. Citizens traveling overseas are encouraged to register with the Smart Traveler Enrollment Program (STEP) so that U.S. Embassies can contact you and your loved ones and provide assistance in an emergency.
U.S. businesses and organizations overseas are also welcome to inquire at the Embassy about joining the Overseas Security Advisory Committee (OSAC).
Corruption
The Asian Development Bank (ADB) has a zero-tolerance policy toward corruption. ADB's Office of Anticorruption and Integrity (OAI) says fighting corruption and fraud is crucial to achieving the goal of reducing poverty in the Asia and the Pacific region. True to this, OAI ensures that finite development funds entrusted to ADB are not mishandled, and is officially designated point of contact for allegations of fraud or corruption pertaining to ADB-related activities or staff members.OAI conducts project procurement-related reviews, advises on integrity due diligence, and advances awareness of ADB’s anticorruption policy.
Further, ADB trains, educates, and disseminates information to raise awareness on its Anticorruption Policy and to enhance the skills of staff, civil society, and the private sector in detecting and preventing fraud and corruption in ADB projects.
To report fraud or corruption to ADB, visit Report Fraud or Corruption (https://www.adb.org/site/integrity/how-to-report-fraud) and Whistleblower and Witness Protection (https://www.adb.org/site/integrity/whistleblower-witness-protection) of ADB’s website.
In addition to ADB’s anti-corruption efforts, the U.S. Government seeks to level the global playing field for U.S. businesses by encouraging other countries to take steps to criminalize their own companies’ acts of corruption, including bribery of foreign public officials, by requiring them to honor their obligations under relevant international conventions. A U.S. firm that believes a competitor engaging in corrupt practices should alert appropriate U.S. agencies, as noted below.
U.S. Foreign Corrupt Practices Act: In 1977, the United States enacted the Foreign Corrupt Practices Act (FCPA), which generally makes it unlawful for U.S. persons and businesses (domestic concerns), and U.S. and foreign public companies listed on stock exchanges in the United States or which must file periodic reports with the Securities and Exchange Commission (issuers), to offer, promise or make a corrupt payment or anything of value to foreign officials to obtain or retain business. The FCPA also applies to foreign firms and persons who take any act in furtherance of such a corrupt payment while in the United States. Moreover, the FCPA contains accounting provisions applicable to public companies. These accounting provisions require issuers to make and keep accurate books and records and to devise and maintain an adequate system of internal accounting controls. For more information and guidance on the statute, the Department of Justice and the Securities and Exchange Commission published ‘A Resource Guide to the U.S. Foreign Corrupt Practices Act’ (https://www.justice.gov/criminal-fraud/fcpa-guidance). For more detailed information on the FCPA generally, see the Department of Justice FCPA website (http://www.justice.gov/criminal/fraud/fcpa/guidance/).
Guidance on the U.S. FCPA: The Department of Justice’s (DOJ) FCPA Opinion Procedure enables U.S. firms and individuals and issuers to request a statement of the Justice Department’s present enforcement intentions under the anti-bribery provisions of the FCPA regarding actual, prospective business conduct. The details of the opinion procedure are available on DOJ’s Fraud Section Website at www.justice.gov/criminal/fraud/fcpa and general information is contained in Chapter 9 of the publication A Resource Guide to the U.S. Foreign Corrupt Practices Act (http://www.justice.gov/criminal/fraud/fcpa/guidance/).
Although the Department of Commerce has no enforcement role with respect to the FCPA, the department supplies general information to U.S. exporters who have questions about the FCPA and about international developments concerning the FCPA. For further information, see the website of the Office of the General Counsel, U.S. Department of Commerce (http://www.commerce.gov/os/ogc/transparency-and-anti-bribery-initiatives).
Exporters and investors should be aware that generally all countries prohibit the bribery of their public officials, and prohibit their officials from soliciting bribes under domestic laws. Most countries are required to criminalize such bribery and other acts of corruption by virtue of being parties to various international conventions discussed above.
Other Instruments: U.S. Government policy promotes good governance, including host countries’ implementation and enforcement of anti-corruption laws and policies pursuant to their obligations under international agreements. Since enactment of the FCPA, U.S. has been pro-active in expanding international framework to fight corruption. Several examples are the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions negotiated under the auspices of the OECD (Anti-bribery Convention), the United Nations Convention against Corruption (UN Convention), the Inter-American Convention against Corruption (OAS Convention), the Council of Europe Criminal and Civil Law Conventions, and a growing list of U.S. free trade agreements.
Organisation for Economic Co-operation and Development (OECD) Anti-bribery Convention (http://www.oecd.org/corruption/oecdantibriberyconvention.htm): The Anti-bribery Convention entered into force in February 1999. As of January 2016, there are 41 parties to the Convention, including the United States. China and India are not parties, although the U.S. Government strongly supports their eventual accession to the Anti-bribery Convention. The Anti-bribery Convention obligates the Parties to criminalize bribery of foreign public officials in international business transactions, which the United States has done under U.S. FCPA.
UN Convention: The UN Convention (http://www.unodc.org/unodc/en/treaties/CAC/signatories.html), composed of 178 parties, requires countries to establish criminal and other offences to cover a wide range of acts of corruption, from basic forms of corruption such as bribery and solicitation, embezzlement, and trading in influence to the concealment and laundering of the proceeds of corruption. The Convention contains transnational business bribery provisions.
OAS Convention: The 34-member States of the Organization of American States (OAS) adopted the Inter-American Convention against Corruption (http://www.oas.org/juridico/english/mesicic_intro_en.htm), i.e., OAS Convention. This OAS Convention establishes a set of preventive measures against corruption, provides for the criminalization of certain acts of corruption (transnational bribery and illicit enrichment), and contains a series of provisions to strengthen the cooperation between its States Parties in areas such as mutual legal assistance and technical cooperation, among other things.
Council of Europe Criminal Law and Civil Law Conventions on Corruption: Many European countries are parties to either the Council of Europe (CoE) Criminal Law Convention on Corruption, the Civil Law Convention on Corruption, or both. The Criminal Law Convention requires criminalization of a wide range of national and transnational conduct, including bribery, money-laundering, and accounting offenses. It also incorporates provisions on liability of legal persons and witness protection. The Civil Law Convention includes provisions on whistleblower protection, compensation for damage relating to corrupt acts, and nullification of a contract providing for or influenced by corruption, among other things. To monitor compliance with these and related anti-corruption standards, CoE also established the Group of States against Corruption (GRECO) (http://www.coe.int/t/dghl/monitoring/greco/general/about_en.asp) in 1999. Currently, GRECO comprises 49 member countries, including United States (website; Criminal Law Convention on Corruption ETS No. 173 (http://conventions.coe.int/Treaty/Commun/QueVoulezVous.asp?CL=ENG&NT=173); Criminal Law Convention on Corruption ETS No. 174 [http://conventions.coe.int/Treaty/Commun/QueVoulezVous.asp?CL=ENG&NT=174])
Free Trade Agreements: U.S. Government policy includes anticorruption provisions in free trade agreements (FTAs). The most recent FTAs negotiated require trading partners to criminalize “active bribery” of public officials (offering bribes to any public official must be made a criminal offense, both domestically and trans-nationally) as well as domestic “passive bribery” (solicitation of a bribe by a domestic official). All U.S. FTAs may be found at the U.S. Trade Representative website (http://www.ustr.gov/trade-agreements/free-trade-agreements).
Local Laws: U.S. firms should familiarize themselves with local anticorruption laws, and, where appropriate, seek legal counsel. While the U.S. Department of Commerce (DOC) cannot provide legal advice on local laws, the DOC’s U.S. and Foreign Commercial Service can provide assistance in navigating the host country’s legal system and obtaining a list of local legal counsel.
Assistance for U.S. Businesses: The U.S. DOC’s U.S. and Foreign Commercial Service (U.S. FCS) can provide services that may assist U.S. companies in conducting their due diligence as part of the company’s overarching compliance program when choosing business partners or agents overseas. The U.S. and Foreign Commercial Service can be reached directly through its offices in every major U.S. and foreign city, or through its website (http://www.export.gov/cs).
The United States provides commercial advocacy on behalf of exporters of U.S. goods and services bidding on public sector contracts with foreign governments and government agencies. An applicant for advocacy must complete a questionnaire concerning its background, the relevant contract, and the requested U.S. Government assistance. The applicant must also certify that it is in compliance with applicable U.S. law, that it and its affiliates have not and will not engage in bribery of foreign public officials in connection with the foreign project, and that it and its affiliates maintain and enforce a policy that prohibits bribery of foreign public officials. Problems, including alleged corruption by foreign governments or competitors, encountered by U.S. companies in seeking such foreign business opportunities can be brought to the attention of appropriate U.S. government officials, including local embassy personnel, and reported through the Department of Commerce Trade Compliance Center “Report a Trade Barrier” website (http://itacentral/myorg/gm/odg/ocdi/gkc/mr/FY17%20CCGs/tcc.export.gov/Report_a_Barrier/index.asp). Potential violations of the FCPA can be reported to the Department of Justice via email to FCPA.Fraud@usdoj.gov.
Anti-Corruption Resources
•The U.S. Securities and Exchange Commission FCPA Unit (https://www.sec.gov/spotlight/fcpa.shtml): provides general information about the FCPA, links to all SEC enforcement actions involving the FCPA, and contains other useful information.
•General information about anticorruption and transparency initiatives, relevant conventions and the FCPA is available at the Department of Commerce Office of the General Counsel website (http://www.commerce.gov/os/ogc/transparency-and-anti-bribery-initiatives).
•The Trade Compliance Center’s (http://tcc.export.gov/Bribery) contains an online form through which U.S. companies can report allegations of foreign bribery by foreign competitors in international business transactions
•The U.S. State Department’s annual Human Rights Report (http://www.state.gov/g/drl/rls/hrrpt/): provides additional country information related to corruption.
•The Asia Pacific Economic Cooperation (APEC) (http://businessethics.apec.org/) has developed anticorruption and ethics resources and APEC Anti-Corruption and Transparency Working Group (http://www.apec.org/Groups/SOM-Steering-Committee-on-Economic-and-Technical-Cooperation/Working-Groups/Anti-Corruption-and-Transparency.aspx).
•Transparency International’s (TI) annual Corruption Perceptions Index (CPI) (http://www.transparency.org/research/cpi/overview) measures the perceived level of public-sector corruption in around 180 countries and territories worldwide; the TI’s annual Global Corruption Report (http://www.transparency.org/research/gcr) provides a systematic evaluation of the state of corruption, an in-depth analysis of a focal theme, a series of country reports, and an overview of the latest research findings on anti-corruption diagnostics and tools.
•The World Economic Forum’s Global Enabling Trade Report (http://www.weforum.org/reports/global-enabling-trade-report-2014) is published every two years, assesses the quality of institutions, policies and services facilitating the free flow of goods over borders and to their destinations
•Global Integrity’s annual Report (https://www.globalintegrity.org/global-report/what-is-gi-report/) typically assesses anti-corruption and good governance mechanisms in various countries.
Bilateral Investment Agreements
Bilateral and multilateral trade and investment agreements, as well as taxation treaties, are all observed in the conduct of Asian Development Bank-funded operations. In countries where the United States has Trade Promotion/Free Trade Agreements, American firms bidding on contract may enjoy competitive advantages over firms from countries that have no such agreements. On the other hand, in countries with which the United States does not have Trade Promotion/Free Trade Agreements, American firms bidding on projects may be at a competitive disadvantage against firms from countries that are signatories to such agreements.To learn about the status of bilateral trade and investment agreements in countries of interest to your firm see the “Bilateral Investment Agreements” section of each country’s Country Commercial Guide (https://www.export.gov/ccg).
OPIC and Other Investment Insurance Programs
The U.S. Government offers loans and guarantees, political risk insurance and support for private equity funds through the Overseas Private Investment Corporation (OPIC) (https://www.opic.gov/), which help American firms confidently engage business in over 150 countries, including some of the world’s most challenging commercial environments.To learn about OPIC and other investment insurance programs in countries of interest to your firm see the “OPIC and Investment Insurance Programs” section of each country’s Country Commercial Guide (https://www.export.gov/ccg).
Meanwhile, the Asian Development Bank (ADB) provides guarantees for eligible projects, which enable financing partners to transfer certain risks to ADB that they cannot easily absorb or manage on their own.
ADB’s guarantees, either comprehensive or limited coverage, support infrastructure projects (e.g., power, transportation, water supply and waste treatment, and telecommunications), financial institutions, capital market (e.g., banking, leasing, insurance, and funds) investors and trade financiers, and include a wide variety of debt instruments.
Guarantees can be afforded when ADB has a direct or indirect participation in a project or related sector, through a loan, equity investment or technical assistance.
ADB’s two primary guarantee products are political risk guarantee and a credit, which are designed to mitigate risk exposure of financing partners.
ADB’s political risk guarantee (PRG) intends to facilitate private sector development, either through public or private sector projects. This guarantee suits when commercial lenders are prepared to accept commercial (or credit) risks of a project, but not the political risks.
These risks include transfer restriction, expropriation, political violence, contract disputes, and non-honoring of a sovereign obligation or guarantee.
ADB provides partial credit guarantees (PCG) to lenders of most forms of debt, including commercial bank loans, loans made by shareholders, loans guaranteed by shareholders or third parties, capital market debt instruments, bonds, financial leases, letters of credit, promissory notes, and bills of exchange.
PRG covers nonpayment by the borrower or issuer on the guaranteed portion of the principal and interest due.
Labor
The Asian Development Bank (ADB) diligently incorporates social safeguards, including labor considerations, in its operational policies. U.S. firms participating in any ADB-funded operation must be aware of ADB’s safeguard policies and learn about the labor laws and conditions in countries where ADB projects are to be implemented. In addition, consulting with competent lawyers with local labor expertise is strongly advised. For more information, check the “Labor” section of each country’s Country Commercial Guide (https://www.export.gov/ccg).ADB’s labor market programs support the development of job-relevant skills and workers' retraining, particularly the low-skilled and marginalized. They also facilitate employment. Key sectors that may serve as entry points for promoting and expanding labor market programs include education and infrastructure (energy, information and communication technology, water, and transport).
The labor market programs also include active labor market policies and programs, e.g., pre-employment training, skills development and upgrading, public works, matching supply and demand for labor, and passive labor market policies and programs, e.g., compliance with core labor standards, job security provisions, and improving working conditions.
Additionally, ADB, with its ADB’s Policy on Gender and Development (https://www.adb.org/sites/default/files/institutional-document/32035/gender-policy.pdf), promotes gender equity; thus, gender considerations such as gender sensitivity, gender analysis, and gender planning are now mainstreamed into ADB operations and activities.
Right to Private Ownership and Establishment
The Asian Development Bank (ADB) recognizes the right to private ownership and establishment, but is not prescriptive with regard to borrowing countries’ policies on rights to private ownership.To learn about Limits on Foreign Control and Right to Private Ownership and Establishment in countries of interest to your firm see the Limits on Foreign Control and Right to Private Ownership and Establishment section of each country’s Country Commercial Guide (https://www.export.gov/ccg).
Responsible Business Conduct
The Asian Development Bank (ADB) supports inclusive business (https://www.adb.org/themes/social-development/inclusive-business), which is integrated in ADB’s Strategy 2020. According to ADB, inclusive businesses differ from social enterprises and corporate social responsibility. These are private sector investments focused on low income markets, which aim to make reasonable profits while creating tangible development impact through sustainable jobs and better income opportunities and services for the poor.Since ADB started its inclusive business initiative, the number of its investments in inclusive companies has increased. In 2013, five out of the 16 approved private sector projects qualified as inclusive businesses.
Apart from inclusive business initiative, ADB is allocating funds to strengthen Corporate Social Responsibility in Pakistan (https://www.adb.org/projects/48067-001/main).
Whenever warranted, and particularly in private sector projects, ADB mandates corporate social responsibility action plans from project sponsors. Examples are a hydropower project in Pakistan where livelihood restoration and CSR formed part of the project design. In the Philippine Visayas Base Load Power project, the project sponsor provided ADB a full CSR report as part of the bank’s due diligence.
Visit the ‘Corporate Social Responsibility’ section of each country’s Country Commercial Guide (https://www.export.gov/ccg) to learn more.
The U.S. Department of State’s Investment Climate Statements, prepared annually by U.S. embassies and diplomatic missions abroad, provide country-specific information and assessments of the investment climate in foreign markets. Topics include: Market barriers, business risk, legal and regulatory system, dispute resolution, corruption, political violence, labor issues, and intellectual property rights. The statements are available in two ways.
• Visit the U.S. Department of Department of State’s Investment Climate Statement website at https://www.state.gov/e/eb/rls/othr/ics/.
• Download the Country Commercial Guide at www.export.gov/ccg (https://www.export.gov/ccg) (the Investment Climate Statement is Chapter 6). Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.