BUSAN, REPUBLIC OF KOREA - Greater accountability and better fiscal management are needed to achieve more inclusive growth in developing Asia-Pacific nations, Asian Development Bank (ADB) President Haruhiko Kuroda said today.
"Making growth more inclusive will also require greater accountability, transparency, and participation of public institutions," said Mr. Kuroda. "Poor fiscal management undermines economic growth generally, which in turn puts inclusive growth out of reach."
Mr. Kuroda was giving the opening remarks at a session on inclusive growth at the Fourth High Level Forum on Aid Effectiveness in Busan. Over 2,500 delegates from more than 150 countries, including Korean President Lee Myung-bak, US Secretary of State Hillary Rodham Clinton and UN Secretary-General Ban Ki-moon are taking part in the forum, which provides an international platform for developing and donor nations to discuss how aid can be used more effectively to promote development.
Asia has achieved spectacular economic growth and achieved major reductions in poverty over the past five decades, but the region remains home to the majority of the world's poor, and inequalities both within and among countries are widening.
"A high degree of inequality constrains the impact growth can have on reducing poverty," Mr. Kuroda said. "High levels of poverty and gross inequalities can also undermine social cohesion and stability, as seen in some parts of the world."
Many countries in developing Asia are embracing inclusive growth as part of their development agenda. ADB supports their efforts through a range of initiatives involving project finance, technical assistance, knowledge products and services, and policy dialogue. ADB's support for public financial management has helped maintain financial stability and improved prioritization of scarce public resources and efficiency in services delivery.
ADB adopted a comprehensive corporate results framework in 2008 to tangibly measure its contribution to development in the region, making it the first multilateral development bank to do so. ADB uses the results framework to assess its performance objectively and drive internal reforms to maximize its development impact.
The major focus of the Busan forum is to reaffirm international commitments for achieving greater development effectiveness with a much broader group of stakeholders, which includes the private sector. Forum participants will discuss improvements to the way aid is delivered, building on the 2005 Paris Declaration and 2008 Accra Agenda for Action.