Closing Statement at the 41st Annual Meeting
By
Haruhiko Kuroda
President, Asian Development Bank
6 May 2008
Madrid, Spain
Introductory remarks
Mr. Chairman, Governors of the Asian Development Bank, distinguished guests, ladies and gentlemen.
The 41st Annual Meeting is now coming to a close. This has been a successful meeting with rich discussions on substantial issues. The various events and discussions that have taken place showcased the progress of the region and our collective achievements. At the same time, we recognize the critical risks and challenges, and the many opportunities, which we need to address now and in the years ahead. I thank Governors for their insights on how ADB can play a vital role in responding to the region's most urgent needs while responding to the medium and long-term priorities of all developing member countries.
Let me briefly review a few highlights of this Annual Meeting.
The Region
First, we noted that growth in developing Asia and the Pacific remains relatively strong despite a global economic slowdown and recent turmoil in financial markets. This growth is contributing to poverty reduction in the region, and benefiting the global economy. With sustained commitment to economic reform and greater intraregional economic cooperation, Asia has become a key growth center in the global economy, and the economic outlook for the region is positive.
However, persistent income and non-income poverty, along with economic and social inequalities continue to exist within and between countries. Further institutional and policy reforms, including expanded opportunities for private sector investment and job creation, are essential to close these gaps.
Second, the pressing problem of rising food and energy prices is aggravating inflation in many countries and posing serious challenges to prudent macroeconomic management and financial stability. Rising prices of basic commodities adversely affect the real incomes of poor households, putting progress on poverty reduction and social cohesion at risk. This demands early responses. Governments need to implement well designed and well-targeted programs for the poorest and most vulnerable groups, as well as policies to support open commerce and availability of basic commodities across the region. Medium to long-term measures are needed to improve agriculture productivity and modernize the rural economy, including increased investment in research, rural infrastructure and rural finance.
ADB will do all we can, within our strategic mandate, to help mitigate the food price crisis and ensure longer-term food security in the region. I am confident that with the appropriate and coordinated assistance from the international community, the region as a whole can withstand the crisis, especially if countries work together as they have already begun to do.
Third, we discussed the risks posed by environmental degradation and climate change. The region's current pattern of energy and other natural resource use is not sustainable. Governors appreciated that ADB has defined environment and climate change as a key element of its strategic agenda, and recognize the new Climate Change Fund ADB is establishing as a significant channel for strategy implementation and achievement of results in these areas.
ADB in the Asia and Pacific Region
Fourth, we discussed at length ADB's future strategic directions. We appreciate the support of Governors for Strategy 2020, including its vision, strategic agenda, main areas of operations, and emphasis on the private sector and partnerships. With our priorities clearly defined, we now look forward to implementing Strategy 2020 in continued partnership with our developing and developed member countries. And we will do so with flexibility and responsiveness to the emerging priorities of our developing member countries.
Let me also reiterate our appreciation to our donor members for their solid support of, and generous contributions to, the Asian Development Fund. ADF is a crucial instrument of the international community for achieving the MDGs in the region, and a symbol of our collective commitment to a more inclusive regional and global society.
Governors recognized that ADB must also have access to sufficient nonconcessional resources, to implement fully Strategy 2020 and accomplish its long-term goals. ADB will examine every possible option for sourcing these funds, including working with shareholders on increasing ADB's own internal capital resources.
Finally, Governors emphasized the need for ADB to consolidate its institutional reforms, continue to improve the quality of our human resources, secure the right skills mix, and strengthen our results culture at ADB. ADB's continued application of safeguards in its operations is also essential. Let me assure you that we are fully committed to doing so.
Concluding remarks
Governors:
It has been a privilege to meet with you here in Madrid to reaffirm our collective commitment to end poverty in Asia and the Pacific and achieve inclusive, cooperative and environmentally sustainable development and prosperity in the region.
I would like to express our sincere gratitude to the Chairman, the Honorable Pedro Solbes Mira, Second Vice President and Minister of Economy and Finance of Spain, for the excellent arrangements. And I especially want to thank the City and the people of Madrid, who, through their warm and gracious hospitality have made this 41st anniversary of the ADB a memorable occasion.
I would also like to congratulate the Governor for Indonesia, who will serve as Chairman of the Board of Governors for the coming year.
I look forward to seeing all of you next year when we will meet in Bali for ADB's 42nd Annual Meeting, and wish you a safe and pleasant journey home. Thank you.
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