Catalog

The repercussions from the terrorist attacks in New York and Washington have been felt around the world, but nowhere more profoundly than in Asia and the Pacific. It is too early to gauge the full impact on all countries, but across the region, from Afghanistan to remote atolls of the South Pacific, developing countries are showing ominous signs of the fallout.

Exports, the lifeblood of so many Asian nations, are slowing. A sharp drop in air travel has hit tourism, an important source of foreign exchange. Consumer and investor confidence is weakening. In East Asia, some currencies and equity markets have declined precipitously.

Aside from the harsh realities of armed conflict, Pakistan and some of the Central Asian countries must now cope with higher spending on security and refugees. The Asian and Pacific region now lies in the shadow of a deeper and longer-than-expected economic slowdown. Pervasive uncertainty is cause for deep concern.

September 11 will have a direct impact on Asia’s poor. It will be especially severe in Afghanistan, Pakistan, and nearby Central Asian republics.

Even before the attacks in the United States, an estimated 900 million Asians were struggling to survive on less than $1 a day. The economic consequences of the attacks—including lower incomes, reduced foreign investment, and job losses—will only make matters worse. As key economic indicators slide, the number of absolute poor will inevitably rise.

These developments will require serious responses from international financial institutions. The Asian Development Bank will do all it can to help all its developing member countries overcome the current crisis. This will require finely balanced judgments and decisions. As Asia’s “family doctor,” we are intensifying dialogue with each of these countries.

Some of them will require immediate and short-term emergency assistance; others, longer-term projects or programs. As post-conflict perspectives become clearer, we will continue to further adjust our operations to meet emerging needs. These could range from providing village wells, schools, and health clinics to rehabilitating power plants and highways or supporting legislation against money laundering.

In addition to helping mitigate the immediate suffering, ADB is prepared to assist in reconstruction wherever this is needed, as we have done in Cambodia and East Timor.

We will continue to work closely with our shareholders (Asian and Pacific governments) as well as with nongovernment organizations and civil society, the private sector, and other bilateral and multilateral institutions. Resources and expertise are being pooled.

The war against poverty is likely to be long and hard. If it is to be defeated, the major battles will have to be won, and won quickly, in Asia. In far too many countries, there is still persistent, degrading, dehumanizing poverty. It must be eradicated within a generation.

The international crisis and the economic downturn threaten to set back the development efforts of many Asian and Pacific countries. This should make us redouble our efforts to reduce poverty and thus contribute to peace and stability.

This comment appeared in the International Herald Tribune on 25 October 2001. It is reprinted with permission.

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