ID :
58948
Tue, 05/05/2009 - 11:01
Auther :
Shortlink :
https://oananews.org//node/58948
The shortlink copeid
ADB calls for Asia-Pacific to rebalance growth+
NUSA DUA, Indonesia, May 4 Kyodo - The Asian Development Bank kicked off a two-day annual meeting Monday with a call for economic rebalancing and environmental sustainability in efforts to support growth and eradicate poverty.
''With global imbalances, Asia needs to adjust,'' ADB President Haruhiko Kuroda
told the opening session of the 42nd ADB annual meeting held in a beach town on
the Indonesian resort island of Bali.
''By rebalancing export-driven growth with a greater reliance on domestic
demand and consumption, Asia can lead the way in charting a new, globally
beneficial development course,'' he said.
Kuroda's statement came only a day after 10-member countries of the Association
of Southeast Asian Nations, plus China, Japan and South Korea reached a deal to
set up a US$120-billion Chiang Mai Initiative Multilateralization scheme, a
move seen by many as efforts by the Asian countries to replace the role of the
International Monetary Fund.
''After the 1997 financial crisis, one lesson that Asia learned was you better
be ready to depend on yourself,'' ADB Managing Director General Rajat Nag said.
''If the region is going to be an economic growth center, it is also
appropriate that it knows it has the resources and reserves to stand on its own
feet.''
The regional fund will offer emergency balance of payments support to any
country hit with extreme currency devaluation and capital flight, such as that
that ignited the Asian financial crisis in 1997.
Also Sunday, Japan said it will offer 6 trillion yen in yen-denominated swap
facilities to help the member countries during any emergencies and guarantee up
to 500 billion yen in yen-denominated bonds, or Samurai bonds, issued in
Japanese markets by developing countries.
In his speech, Kuroda stressed Asian countries need to work together to
strengthen their investment climate, build a ''seamless infrastructure'' across
the region, promote regional trade and impose appropriate domestic policies.
''With strong national and regional efforts, and a mild recovery
expected in the global economy next year, developing Asia should bounce back to 6
percent growth in 2010,'' he said.
According to ADB projections, the region's aggregate growth is expected to fall
to 3.4 percent this year from record growth of 9.5 percent in 2007.
''Under the current projections, 60 million more people will remain trapped in
poverty this year and yet another 100 million next year -- an alarming setback
to our vision of an Asia and Pacific free of poverty,'' Kuroda said.
The global economic downturn, however, shall not make efforts to
respond to another global problem, climate change, ''be held captive,'' he added.
''Simply put, we must ramp up our efforts to put the region on a path of
low-carbon growth. At a time when investment is desperately needed to stimulate
economies, we need to target those investments to clean energy to mitigate
climate change,'' he said. ''This is not an option, it is an imperative. Access
to energy is essential for growth, poverty alleviation.''
''Moreover, producing and using energy efficiently lowers costs for business
and enhances economic competitiveness,'' he said. ''Thus, it is not only the
right thing to do, it is also the smart thing to do.''
Last week, the ADB board agreed to triple the bank's capital base from $55
billion to $165 billion, giving it much-needed resources to respond to the
global economic crisis.
Over the weekend, the financial institution also announced the Countercyclical
Support Facility to establish a $3 billon fund to help developing countries
cope with the global financial crisis.
Separately, Japanese Finance Minister Kaoru Yosano said the ADB's crisis
response ''should be tailored to the specific needs of its member countries
identified through policy dialogues.''
In addition to quick disbursement and front-loading of its lending, Yosano
stressed, the ADB ''should also diversify its lending instruments with
increasing flexibility.''
The ADB, established in 1966 and based in Manila, has 67 member-economies.
Japan and the United States are the largest donors.
''With global imbalances, Asia needs to adjust,'' ADB President Haruhiko Kuroda
told the opening session of the 42nd ADB annual meeting held in a beach town on
the Indonesian resort island of Bali.
''By rebalancing export-driven growth with a greater reliance on domestic
demand and consumption, Asia can lead the way in charting a new, globally
beneficial development course,'' he said.
Kuroda's statement came only a day after 10-member countries of the Association
of Southeast Asian Nations, plus China, Japan and South Korea reached a deal to
set up a US$120-billion Chiang Mai Initiative Multilateralization scheme, a
move seen by many as efforts by the Asian countries to replace the role of the
International Monetary Fund.
''After the 1997 financial crisis, one lesson that Asia learned was you better
be ready to depend on yourself,'' ADB Managing Director General Rajat Nag said.
''If the region is going to be an economic growth center, it is also
appropriate that it knows it has the resources and reserves to stand on its own
feet.''
The regional fund will offer emergency balance of payments support to any
country hit with extreme currency devaluation and capital flight, such as that
that ignited the Asian financial crisis in 1997.
Also Sunday, Japan said it will offer 6 trillion yen in yen-denominated swap
facilities to help the member countries during any emergencies and guarantee up
to 500 billion yen in yen-denominated bonds, or Samurai bonds, issued in
Japanese markets by developing countries.
In his speech, Kuroda stressed Asian countries need to work together to
strengthen their investment climate, build a ''seamless infrastructure'' across
the region, promote regional trade and impose appropriate domestic policies.
''With strong national and regional efforts, and a mild recovery
expected in the global economy next year, developing Asia should bounce back to 6
percent growth in 2010,'' he said.
According to ADB projections, the region's aggregate growth is expected to fall
to 3.4 percent this year from record growth of 9.5 percent in 2007.
''Under the current projections, 60 million more people will remain trapped in
poverty this year and yet another 100 million next year -- an alarming setback
to our vision of an Asia and Pacific free of poverty,'' Kuroda said.
The global economic downturn, however, shall not make efforts to
respond to another global problem, climate change, ''be held captive,'' he added.
''Simply put, we must ramp up our efforts to put the region on a path of
low-carbon growth. At a time when investment is desperately needed to stimulate
economies, we need to target those investments to clean energy to mitigate
climate change,'' he said. ''This is not an option, it is an imperative. Access
to energy is essential for growth, poverty alleviation.''
''Moreover, producing and using energy efficiently lowers costs for business
and enhances economic competitiveness,'' he said. ''Thus, it is not only the
right thing to do, it is also the smart thing to do.''
Last week, the ADB board agreed to triple the bank's capital base from $55
billion to $165 billion, giving it much-needed resources to respond to the
global economic crisis.
Over the weekend, the financial institution also announced the Countercyclical
Support Facility to establish a $3 billon fund to help developing countries
cope with the global financial crisis.
Separately, Japanese Finance Minister Kaoru Yosano said the ADB's crisis
response ''should be tailored to the specific needs of its member countries
identified through policy dialogues.''
In addition to quick disbursement and front-loading of its lending, Yosano
stressed, the ADB ''should also diversify its lending instruments with
increasing flexibility.''
The ADB, established in 1966 and based in Manila, has 67 member-economies.
Japan and the United States are the largest donors.
