Closing Remarks by
Haruhiko Kuroda, President
Asian Development Bank

At the 38th Annual Meeting

6 May 2005
Istanbul, Turkey

Introduction

The Thirty-Eighth Annual Meeting of the Board of Governors is now coming to a close. I would like to thank the Governors for providing valuable insights and perspectives on the challenges involved in further reducing poverty and achieving the Millennium Development Goals in Asia and the Pacific.

This has been a very successful and productive Annual Meeting. Let me briefly review a few highlights.

The Region

Governors observed that, over the last year, the economies of developing Asia and the Pacific achieved their highest growth rates since the Asian financial crisis. There has been a marked increase in business investment in almost every area, particularly in East Asia and Southeast Asia. It will be vitally important to continue regional cooperation and integration efforts to promote further economic growth and inclusiveness.

Governors noted that developing Asia has entered a new era of development characterized by dynamic growth, increased interdependence, and an unprecedented prominence in the global economy.

However, we all recognize that global macro-economic challenges may constrain future growth in Asia and the Pacific. Further, the current generally buoyant economic profile is not uniform and significant disparities in economic and social development persist within countries and across the region. There was wide recognition that countries need to give greater attention to the challenge of achieving balanced growth and overcoming income inequality. The benefits of growth must be extended to the entire population by including the poor and vulnerable in the mainstream of economic development.

Governors pointed out that progress in reducing non-income poverty has been slow in many countries. Further reductions in poverty and achievement of most or all of the MDGs by 2015 will require increased support from the international community.

ADB

Governors expressed their strong appreciation to ADB for its leadership role and quick response in addressing the aftermath of the tsunami in late 2004. They requested ADB to work with development partners to ensure integrity in the use of funds and to monitor the effectiveness of operations financed by the Asian Tsunami Fund.

There is broad recognition that good governance, transparency and continued vigilance in anti-corruption activities are critical. Governors commended ADB on establishing an Integrity Division to support these efforts.

The importance of managing for development results was strongly reaffirmed. Governors welcomed the establishment of the Results Unit, but urged ADB to accelerate implementation of a results agenda throughout the institution.

Implementation of the new Human Resources Strategy is crucial for ADB's development effectiveness. Governors noted the recent approval of the Public Communications Policy and requested Management to oversee full implementation of the policy.

ADB is strongly committed to a more proactive role in regional cooperation and integration, and Governors welcomed the creation of the Office of Regional Economic Integration. They also requested ADB to promote more efficient financial intermediation in the region, and to assist DMCs to meet the challenges of globalization.

Governors share ADB's concern with the negative net transfer of resources to DMCs. They welcomed ADB's plan to streamline policies and procedures, develop new lending instruments, sharpen the focus of its operations, and ensure the cost competitiveness, within a well defined medium term strategic framework.

To meet the large infrastructure challenges in the region, Governors urged ADB to work with governments, development partners, and the private sector. They particularly encouraged ADB to promote increased private sector participation in the region's development. They also welcomed ADB's plan to establish an independent risk management unit.

Governors commended ADB on the introduction of grants in ADF IX, and noted that the use of ADF IX grant resources must be consistent with the institution's overall commitment to development effectiveness.

Conclusion

Governors, ADB is firmly committed to reducing poverty and achieving the MDGs in Asia and the Pacific. ADB has reaffirmed its vision of a region of Asia and Pacific free of poverty. We are entering a new era that holds much promise for the region.

In this new era ADB must become a more relevant, more responsive and more results-oriented institution, serving the interests of all shareholders.

As President of ADB, it has been my privilege to meet and engage with you during this important meeting. I look forward to your continued support and partnership.

I wish to convey our gratitude to the Chairman, Mr. Ibrahim H. Canakci, Undersecretary of the Treasury of Turkey, for the splendid arrangements for this meeting. I also thank the two Vice-Chairmen, Mr. N. Altankhuyag of Mongolia and Sir Geoffrey A. Henry of Cook Islands.

I congratulate the Governor for India, 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 Hyderabad next year.