Closing Remarks

by
Tadao Chino
President
Asian Development Bank

12 May 2002
Shanghai, PRC

Introduction

We are approaching the close of this Thirty-Fifth Annual Meeting of the Board of Governors. As in previous years, a program of country presentations and seminars accompanied the meeting. During the business sessions, Governors discussed the outlook for the world economy and its implications for the developing member countries (DMCs) of ADB. They reviewed ADB operations, and offered valuable comments and insights on the principal development strategy and management of the institution. This is to help reduce poverty through pro-poor, sustainable economic growth, social development, and good governance. Governors also emphasized the importance of ensuring the effectiveness of ADB's operations. I am also grateful to Governors for their continued support for my stewardship of ADB.

The Asia and Pacific Region

Governors noted that the world economy was in a modest recovery from the synchronized slowdown of 2001, and the regional economy is showing resilience. In fact, many DMCs are achieving faster economic recovery than we had anticipated earlier. This, however, does not mean that all development issues have been resolved. DMCs will need to accelerate policy and structural reforms; invest in human resources, including IT-related capacity building; empower women; and vigorously pursue good governance efforts.

ADB-Related Issues

Governors expressed satisfaction that ADB was implementing its Poverty Reduction Strategy in an effective manner. In this context, the additional resources provided by some donors were highly appreciated. Some Governors also emphasized the important role that trade can play for stimulating growth and reducing poverty. They highlighted the need to increase private sector participation in this process.

Governors noted the importance of ADB's Long-Term Strategic Framework (LTSF), Medium-Term Strategy and the new strategy for Pacific operations. For their effective implementation, many Governors welcomed the reorganized structure of ADB's operational departments. They hoped that this would strengthen county focus and that the integration of programming and project processing functions would enable ADB to implement country programs more effectively. It should ensure greater accountability for results, enhanced effectiveness of resident missions, and greater gender equity in the workplace. They also welcomed the new policies on private sector operations, social protection, water, and information and communication technology. The efforts being made to offer more competitive loan products to borrowers were also appreciated.

Governors welcomed the opportunity for ADB to contribute to the reconstruction of Afghanistan. They noted with satisfaction the lead role that ADB is playing in the international efforts to support the country and its neighbors.

Governors emphasized the importance of ensuring the sustainability of Asian development. The drive for growth must not destroy the natural environment. As well, the links between poverty and environmental degradation are increasingly recognized. Environmental protection is rightly one of ADB's main crosscutting themes. They expressed the hope that ADB would take an active part in the forthcoming World Summit on Sustainable Development in Johannesburg.

Given its Charter mandate on regional cooperation, as further articulated in the LTSF, Governors welcomed ADB's intensified work in this field. ADB's support for regional programs, including those in the Greater Mekong Subregion, South Asia, and Central Asia, is gathering momentum. Some Governors encouraged ADB to enhance its support to other subregional programs, including BIMP-EAGA and IMT-GT. It was emphasized that provision of regional public goods should continue to be a particular focus of ADB's initiatives for regional cooperation.

Governors highlighted the importance of measuring the impact and effectiveness of ADB operations on the ground. In particular, ADB should ensure that the benefits of poverty interventions actually flow to the poor. I intend to make this a special priority. Governors also stressed the need to assist DMCs in building local capacity for impact monitoring and evaluation.

Governors noted that ADB's Inspection Function was receiving increasing attention. In light of the lessons learned, we are reviewing the Inspection Function and will shortly commence external consultations to this end. This review should strengthen the credibility and effectiveness of ADB's inspection process.

Many Governors welcomed the establishment of ADB's NGO Center. We will ensure that the Center will significantly enhance the quality of our dialogue with civil society representatives.

The Monterrey Consensus adopted by the recent UN Conference on Financing for Development stressed the value of partnerships-partnerships between developed and developing countries, and between multilateral development institutions and developing countries. ADB seeks to work more closely with other bilateral and multilateral development agencies. The memoranda of understanding with the World Bank, UNDP, WTO, ILO, and others reflect this determination. I wish to assure Governors that we will intensify cooperation with development partners to the benefit of recipient countries.

Conclusion

Two thirds of the world's poor live in the Asia and Pacific region. The fight against global poverty must be won in ADB's DMCs. As the regional development institution, ADB has a special responsibility. It must use its expertise, knowledge, and resources to help DMCs in their efforts to reduce poverty and fulfill the Millennium Development Goals. I am grateful to Governors for their strong endorsement of ADB's overarching objective and our strategies to achieve it. In this connection, some Governors urged ADB to expedite the ongoing review of its future resource requirements that was authorized by Governors in Chiang Mai.

In seeking to implement the vision of an Asia and Pacific region free of poverty, we draw inspiration from the remarkable progress we have seen here in the city of Shanghai. I wish to convey our gratitude to the Government of the People's Republic of China, the City of Shanghai, and the Shanghai Preparation Committee for the excellent arrangements for this meeting.

I would also like to thank the Chairman and the two Vice Chairs for their excellent stewardship of our discussions over the last three days. I congratulate the Governor of Turkey who will serve as Chairman of the Board of Governors for the coming year. We look forward to the opportunity to work closely with you.

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

Thank you and Zai Jian.