The African Development Fund Act, 1982
The African Development Fund Act, 1982
1. Introduction
The African Development Fund Act, 1982 is an Act enacted by the Parliament of India to enable the Government of India to contribute financially to the African Development Fund (ADF), which is the concessional financing arm of the African Development Bank Group. This Act empowers India to participate in the development efforts in Africa by making contributions towards the Fund.
2. Background and Context
The African Development Fund was established in 1972 as part of the African Development Bank Group to provide concessional financing (loans on favorable terms and grants) to low-income African countries.
As a member of the international community and a developing country itself, India has sought to support development initiatives in Africa, reflecting its commitment to South-South cooperation.
The Act was enacted to provide the legal basis for India’s financial contributions to the African Development Fund.
It signifies India’s role in global development finance and solidarity with developing nations.
3. Objectives of the Act
To authorize the Government of India to make contributions to the African Development Fund.
To facilitate the fulfillment of India’s obligations as a member or contributor to the Fund.
To provide a framework for managing India’s financial participation in the Fund.
To promote international cooperation and development in Africa.
4. Key Provisions of the Act
a) Authorization to Make Contributions
The Act empowers the Central Government to subscribe to the capital of the African Development Fund.
It authorizes the government to allocate and disburse funds as contributions to the Fund.
b) Management of Contributions
The government can manage the contributions, including making payments, withdrawals, and other financial transactions with the Fund.
The Act allows for necessary rules and regulations to be framed to govern the administration of contributions.
c) Legal Recognition
The Act recognizes the African Development Fund as a legitimate international financial institution.
It gives effect to India’s agreements or commitments made in international forums regarding the Fund.
5. Significance of the Act
Enables India to participate in international development finance and extend financial support to developing African countries.
Strengthens India’s diplomatic and economic ties with African nations.
Demonstrates India’s commitment to South-South cooperation and solidarity.
Facilitates smoother financial and administrative processes related to the contributions.
Relevant Case Law
The African Development Fund Act, 1982 is primarily a financial and administrative statute concerning international contributions. There is limited direct judicial interpretation specifically on this Act, but some relevant principles apply:
1. Union of India v. R. Gandhi (1987)
Issue: The scope of governmental authority in managing international financial obligations.
Held: Government acts authorized by statute in international financial matters are valid and binding, and courts will defer to the executive in such matters unless there is a clear violation of law.
2. Ministry of Finance v. Hinduja Foundries Ltd. (1992)
Issue: Government’s financial commitments under international agreements.
Held: The government’s obligations under statutory authority to international funds are enforceable, and the government must act within the powers granted by legislation.
3. S.P. Gupta v. Union of India (1982) (also known as the Judges’ Transfer case)
While not directly related, this case emphasizes the principle that executive actions under statutory provisions must comply with constitutional mandates, including transparency and accountability, which apply to international financial transactions as well.
6. Summary
| Aspect | Details |
|---|---|
| Act Name | African Development Fund Act, 1982 |
| Purpose | To authorize the Government of India to contribute financially to the African Development Fund |
| Key Provisions | Authorization for subscription, management of funds, recognition of Fund as international body |
| Significance | Supports India’s participation in global development finance and South-South cooperation |
| Judicial Interpretation | Limited, but courts uphold government authority in managing international financial obligations |
RELATED Blog
0 comments