ADB Responds to Critics of Globalization

Hemantha Wathanage, Rajeshwar Singh, and Maitet Teresa Dikono-Pascual

ADB officials participated in a lively debate on ADB policies and globalization with representatives of several nongovernment organizations at the University of Hawaii's Globalization Research Center on Tuesday 7 May.

NGO speakers expressed concern that the liberalization of trade and capital flows had left the poor behind, and argued for debt relief, subsidized public services, commodity price-controls and trade protection. ADB Chief Economist Arvind Panagariya countered that protectionism was not the solution to social and economic problems. He said that trade is a "powerful engine for growth", which in turn creates resources which governments can use to fight poverty and promote social development.

Christine Wallich, Head of ADB's Private Sector Group, said that involving the private sector in the provision of public services, such as electricity and water, can enhance efficiency and improve access to such services by the poor. Governments, though, must create the right policy conditions, including competitive bidding, transparency and accountability, she added.