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Introduction
Thank you very much. Ladies and gentlemen, distinguished guests. It is a pleasure for me to be here today. I very much appreciate the kind invitation from the Asia Society and the Carnegie Endowment for International Peace for me to participate in this seminar.
I believe the topic that we will discuss today is indeed a very important one. In fact, the increasing gap in Asia between the rich and poor is one of the main concerns of ADB. Today, I would like to briefly introduce ADB's current thoughts on the issues - and I hope to learn from you as well.
Asian Development Bank
First, I would like to briefly introduce our institution. Established in 1966 and headquartered in Manila, ADB is owned and supported in money terms and with personnel by its 67 member countries. ADB is dedicated to poverty reduction in Asia and the Pacific, a region that is home to two thirds of the world's poor. ADB contributes low interest loans, guarantees, grants, private sector investments, and knowledge products and advice to provide assistance to the nearly 1.9 billion people in the region still living on $2 or less a day.
Two Faces of Asia
Last year, we commissioned a study from a group of well-established scholars and policy-makers, called the Eminent Persons Group. The Group was chaired by Mr. Supachai Panitchpakdi, Secretary General of the UNCTAD, and included important economists like Dr. Lawrence Summers, as well as the newly-appointed World Bank Chief Economist, Mr. Justin Lin. This study also portrayed the region as the one with two faces.
One portrays a region enjoying unprecedented economic success, with many countries virtually racing down the road to middle-income status. Their consistent annual GDP growth of 5 to 10 percent is supported by increasing foreign investments and an expanding middle class.
In contrast, the other face of Asia is one of persistent poverty and deprivation. Six hundred million women, men, and children in the Asia-Pacific live below the $1 a day poverty line, and almost 1.9 billion are below the $2 a day vulnerability line. This poverty is found not only in 'poor' countries, but also in the emerging middle income countries.
Inequality is growing across the region. Some groups of people experience systematic discrimination based on their gender, ethnicity, or other socioeconomic status, perpetuating their poverty and exclusion, sometimes causing conflicts and exacerbating the condition of fragile states. In addition, degradation of natural resources and urban environmental problems are contributing to poverty and vulnerability of the region's poor. An ADB study estimates that, by 2020, two thirds of Asia and the Pacific's poor will suffer from environmentally-induced poverty. The rising food prices, impacted by, among others, climate change, continue to hurt in particular the very poor within the region. As we look to resolve various challenges, including those associated with the bio-fuels, we solemnly recognize that the poor in the region continue to suffer first and foremost.
Long-Term Strategic Framework and Inclusive Growth
To meet those challenges, and based on the work of the Eminent Persons Group, ADB is currently preparing our new Long-Term Strategic Framework. Although it is still under preparation, our primary goal continues to address poverty reduction, and one of the key pillars to achieve our goal is through what we describe as 'inclusive growth'. Inclusive growth to us means that we will assist the countries to provide more access and opportunities to their people, by investing more in education, health, and social protection.
There are still a number of questions to be answered, and this is why participating in this seminar is very important for me. The important questions include: Should the emphasis be more on 'growth' or more on 'inclusion'? Would 'inclusive growth' more effectively address persistent poverty than 'pro-poor growth'? Are there other strategies that might complement, bolster, or displace inclusive growth?
Conclusions
Of course, I understand that these questions can not be fully answered by today. However, seminar like this one will help us to have a broader and keener perspective, and I appreciate it very much. ADB very much values your inputs towards our efforts - and I would be happy to provide more information on these issues after the seminar.
Thank you very much again for inviting me to participate, and I look forward to an active discussion.