Closing Remarks by
Tadao Chino
President, Asian Development Bank

at the 37th Annual Meeting

ICC Jeju, Republic of Korea
17 May 2004

Introduction

The Thirty-Seventh Annual Meeting of the Board of Governors is coming to a close. A program of country presentations and seminars, including a Governors' seminar, accompanied the meeting. During the meeting, Governors reviewed the economic performance and prospects of the Asia and Pacific region, as well as the many changes and reforms that have been initiated to strengthen the development effectiveness of ADB. I appreciate the insights of Governors on the issues and challenges facing the region and ADB in our efforts to reduce poverty and achieve the Millennium Development Goals (MDGs). In their statements, Governors also highlighted the priority areas in relation to ADB's operational and organizational directions and the replenishment of the Asian Development Fund (ADF). I also wish to thank Governors for their support to ADB's senior management.

The Region

Governors observed that the economies of developing Asia and the Pacific generally showed significant resilience in 2003. Despite the prevailing uncertainties both outside and within the region, strong economic growth in 2003 made Asia and the Pacific region the most dynamic region in the world. Governors also observed that the international community, including ADB and development partners, has played an important supportive role in the region's strong performance.

Governors observed that the overall economic growth of the region masks differences among subregions and countries on progress in reducing poverty, and particularly the non-income dimensions, which are so critical for achieving the MDGs.

Governors noted the trend towards greater regional interdependency of trade and investment, and the need for closer financial cooperation. Governors noted that development polices need to emphasize how growth can be more socially inclusive by addressing gender, education, health, the environment, and governance.

ADB

Governors reaffirmed that ADB's Poverty Reduction Strategy continues to provide a sound operational framework for ADB's overarching goal of poverty reduction and the MDGs.

Governors welcomed the establishment of a results-management unit and stressed the need to focus on implementation of the action plan for managing for development results. Governors requested ADB to prepare results-based country strategies that are aligned with national poverty reduction strategies.

Governors pointed to the extensive needs for infrastructure in developing countries in the region to lay the foundation for sustainable economic growth, a necessary condition for poverty reduction. Governors encouraged ADB to work closely with governments and the private sector to meet the urgent needs for physical and social infrastructure.

Governors stressed that ADB's private sector operations need to be closely aligned with country strategies and programs to support sustainable economic growth. Governors requested ADB to promote and support small and medium-sized enterprises, and to address critical financial issues such as money laundering and remittances.

Governors appreciated ADB's rapid response to urgent reconstruction assistance in post-conflict countries, including Afghanistan, Sri Lanka, and Timor-Leste. They also asked ADB to be sensitive to the unique development needs of Pacific developing member countries.

Governors requested ADB to provide continued support for regional cooperation in trade and investment, and for improving financial intermediation. Governors appreciated ADB's current efforts to issue local currency bonds and the use of partial credit guarantees.

Governors emphasized the key role of education in mobilizing the productive potential of the poor. In this context, they noted the importance of narrowing the digital divide within the region to reduce income inequality, and requested ADB, in cooperation with members, to provide greater support for developing the knowledge-based economy.

Governors welcomed progress on ADB's initiatives to improve the organization and operations to respond effectively to the challenges faced by the region. Governors also welcomed the decision to make the Operations Evaluation Department independent. Governors highlighted the importance of the independent assessment of the reorganization, and look forward to the findings. Governors noted efforts being made to strengthen senior Management.

Governors drew attention to the role of the new Human Resources Strategy in aligning staff incentives with achieving development results and outcomes. Governors also stressed the need to continue devolving increased responsibilities to resident missions.

Governors welcomed the establishment of a new accountability mechanism to address in a fair and proper manner the concerns of persons affected by ADB-assisted projects. Governors also look forward to the new Public Communications Policy, which will contribute to greater information sharing about ADB operations and encourage more public input.

Governors welcomed progress in ADB's cooperation with its development partners, including harmonization that will benefit the client countries and contribute to greater development effectiveness. ADB's unique role in facilitating greater regional cooperation was also recognized.

Governors expressed satisfaction with the results of the ADF IX replenishment, and requested ADB to pursue efficient and effective resource use within the ADF portfolio, while also making other prudent efforts to mobilize internal resources into ADF. Governors noted that donor members agreed to establish grants in ADF IX.

Conclusion

Governors, ADB is firmly committed to reducing poverty in the Asia and Pacific region, home to two-thirds of the world's poor, the majority being women. ADB is your trusted partner, and it has the knowledge, experience, resources, and other institutional strengths that are essential for addressing the complex development challenges facing the region. ADB will implement all its commitments to become a more accountable, more efficient, and more transparent institution that can effectively assist our developing member countries to fight poverty and achieve the MDGs.

I wish to convey our gratitude to the Chairman, the Deputy Prime Minister and Minister of Finance and Economy of the Republic of Korea, and to the Acting Governor of Jeju for the splendid and excellent arrangements for this meeting. I also thank the two Vice-Chairmen. I congratulate the Governor for Turkey who will serve as Chairman of the Board of Governors for the coming year.

Finally, we wish all of you a safe and pleasant journey back home and look forward to seeing you again in Istanbul next year.