Catalog

Facing Asia's New Challenges
ADB Review [ August-October 2006 ]

Eliminating poverty is within the region’s grasp, but only if serious inequities are addressed first, ADB’s Annual Meeting in Hyderabad heard in May

By Graham Dwyer
External Relations Specialist

HYDERABAD, INDIA

Asia has entered a period of immense change in which extreme poverty could be almost eradicated in the not—too—distant future, if economic growth remains strong and its benefits are more widely shared.

MEETING POINTS President Kuroda with moderator Martin Wolf of the Financial Times at the Governors’ Seminar (left); ADB’s Board of Governors in session (middle); India’s Minister of Finance P. Chidambaram at the opening ceremony (right)

Yet, nearly 1.9 billion people in the region are poor, living on less than $2 a day. As the region grows more prosperous, the widening gap between rich and poor must be addressed.

That was the message of ADB President Haruhiko Kuroda to the Board of Governors as he wrapped up the 39th Annual Meeting in Hyderabad, India.

The Annual Meeting attracted more than 2,000 participants to the Hyderabad International Convention Center from 3 to 6 May, including senior government officials, academics, businesspeople, investment bankers, media, and representatives of international organizations and civil society.

Set within India's fastest growing hightech corridor, the meeting served as a forum for lively discussion on pressing issues of the day, including global imbalances, ADB's partnership with India and South Asia, renewable energy and climate change, and achieving the Millennium Development Goals (MDGs).

"Absolute poverty is declining. But inequality is growing," Mr. Kuroda told the opening session in a speech entitled the "Two Faces of Asia."

"Poverty—in all its aspects—is still our region's most daunting problem. Thus, the abiding passion, vision, and mission of the Asian Development Bank continues to be the elimination of poverty."

Mr. Kuroda said that in the medium term, there is much that can be done to begin closing the gaps in incomes and opportunities. "Pragmatic, sensible solutions for inclusive social development and sustained, equitable growth; a focus on good governance; and a commitment to environmental responsibility will benefit everyone in the region, and they will certainly benefit the poor," he said.

He stressed that achieving the MDGs will require substantial investment, particularly in infrastructure, to sustain high economic growth and extend basic services to the poor. He also highlighted the need to substantially increase private sector participation.

But in the long term, new thinking would be needed to solve current and future problems, including rising unemployment, aging populations, rapid urbanization, as well as the widening gap between rich and poor.

Mr. Kuroda said that to this end, he would convene a panel of eminent persons to provide ADB with insights on the region's future. The panel's views will be discussed at the 2007 Annual Meeting in Kyoto, Japan, and will help guide ADB in a comprehensive, consultative review of its Long—Term Strategic Framework. "This will also help refine ADB's role in a changing Asia and Pacific," he said.

Acknowledging ADB's role in the region, India's Prime Minister Manmohan Singh told the opening session that "ADB has acquired a global relevance because of Asia's rising global profile."

"Today, as we seek to further accelerate our growth process, we look to an even more cooperative relationship with ADB," he said. "We also commit ourselves to strengthening ADB as an instrument of development and of improved governance in our region."

His comments were echoed by P. Chidambaram, India's Minister of Finance and Chairman of the ADB Board of Governors. "ADB is uniquely positioned to transfer the benefits of its experience from one economy to another," Mr. Chidambaram said. "It can provide not only the financial resources, but also the best possible practices in its areas of expertise."

Given the venue for the Annual Meeting, there was considerable focus during the week on ADB's still growing partnership with India. A series of special sessions—under the overall heading of "Advantage India"—gave an opportunity for the ADB President, as well as Indian central and local government officials and figures from industry and finance, to discuss the country's progress and the challenges it still faces.

"India is very much an unfolding story of development success," Mr. Kuroda said at the opening of these sessions. "Its continued economic and social progress would give a tremendous boost to the achievement of the Millennium Development Goals in the Asia and Pacific region—and for the world as a whole."

Mr. Kuroda pointed out that a remarkable sense of optimism pervades the country. "A great deal remains to be done but I believe that India is headed in the right direction," he said. "I would like to complement the government of India on its prudent and effective management of the economy, and for continuing on its path of reforms."

On the sidelines of the Annual Meeting, the seminar series generated large audiences and media coverage as experts debated such subjects as knowledge—based economies, e—services, Basel II, labor markets, sustainable energy, and regional integration. President Kuroda joined ADB governors in a special session on global imbalances for the governors' seminar.

The meeting generated record attendance by nongovernment organizations—more than 150—that took part in a special program during the week, including a session with the President and ADB senior management, and panels on health, climate change, and ADB's consultation and disclosure processes. Media turnout for the Annual Meeting was also the highest for several years with more than 400 registered.

"It has been a privilege to meet with you to discuss the great progress of the Asia and Pacific region, and how we will ensure this progress continues," Mr. Kuroda said in concluding the Annual Meeting.

"I would like to reaffirm, on behalf of the ADB Board of Directors, Management, and staff, our continued commitment to working with all of you to achieve the MDGs and realize the dream of a region free of poverty."

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