African Development Bank: Impact on economic growth

Abstract

The article examines the impact of the African Development Bank (AfDB) on economic growth. The main activity of the Bank is connected with the projects that create new assets and directly affect the economy. The large amount of total assets of all Development Banks in the world, the significant annual amount of financing they provide determine their importance for the global economy. The author concludes that economic growth is associated with the use of five strategic programs: "Feed Africa", "Give energy and power to Africa", "Develop the industrialization of Africa", "Integrate Africa" and "Ensure an improvement in the quality of life for Africans". The Bank uses strategies for cooperation with African countries, planning and implementing projects under these strategic programs. As a result, new jobs are being created, agricultural productivity is increasing, and the infrastructure of African countries is developing. The effectiveness of the AfDB's activities is related to the multi-level evaluation system it uses, which allows assessing the dynamics of development in Africa as a whole, its contribution to the successful implementation of all planned and accepted operations, the quality of these operations and the effectiveness of the Bank as an organization. This system allows qualitatively and quantitatively evaluate the completed projects, the achievement of the set economic and social goals, provides information for the preparation and implementation of corrective control actions. The AfDB links the inclusiveness of economic growth with the emergence of positive consequences for a significant part of the population of African countries with the growth of GDP (an increase in the share of GDP per citizen).