"Poverty, in all its aspects, remains our region's most daunting problem. The abiding passion, vision and mission of the Asian Development Bank continue to be the elimination of poverty," ADB president Haruhiko Kuroda said on Friday.
In his address on the opening session of the 39th annual meeting of Board of Governors of ADB, Kuroda exhorted Asia and Pacific countries to work together to reduce disparities within the region by sustaining high economic growth and spreading the advantages of growth to the disadvantaged.
Speaking on "Two faces of Asia, working together for a poverty-free region," he said that while absolute poverty was declining, inequality was growing. "The face of Asia is changing. Today, hundreds of millions of people enjoy a better quality of life. The middle classes are growing and Asia's place in the world in rising," he said.
"But open the lens wider, and another face appears. In this region of increasing prosperity, one in five people still cannot access safe drinking water. Half the population is without proper sanitation. More than four million children will die this year, never reaching their fifth birthday," he said, drawing out the paradox behind the economic boom.
In the medium term, pragmatic, sensible solutions to promote social development and sustained equitable growth, good governance, and a commitment to environmental responsibility would help close the gaps in incomes and opportunities, he said, referring to the ADB's soon-to-be-finalised medium term strategy.
In the long-term, Kuroda said, new thinking would be needed to solve the region's present and future problems, including rising unemployment, aging populations, rapid urbanisation and the widening gap between the rich and poor.
He said that he would be convening a panel of eminent persons to provide insights on the region's future in response to such challenges. Their findings would be discussed at next year's annual meeting to be held in Kyoto, Japan and help guide the shaping of ADB's Long Term Strategic Framework.
Kuroda pointed out that the people of the Asia and Pacific region have transformed their economies, the trade has flourished and the pace of growth has soared. But the most urgent challenges facing the region would have to be tackled squarely if the benefits of growth have to be more equitably shared.
Achieving the Millennium Development Goals, he said, would require substantial investment, particularly in infrastructure, to sustain high economic growth and extend basic services to the poor, highlighting the need to substantially increase private sector participation. Recently introduced financing instruments would help ADB strengthen its ability to engage the private sector in bridging the investment gap.
Improving even a single aspect of governance-such as regulatory efficiency or controlling corruption-could bring about a tremendous increase in per capita incomes.
"All evidence shows that when governance is weak, it is the poor who suffer the most," he said and pointed out that the ADB, on its part, would strictly uphold governance and anti-corruption policies in its operations and work with its development partners to develop a common framework for preventing and combating fraud and corruption.
Stressing that the negative consequences of growth, such as environmental degradation, must be curtailed, he warned that otherwise the poor would only grow poorer.
He pointed out that, given the region's large appetite for energy, this sector would receive special attention. He said the ADB would expand its investment in clean energy projects to $ one billion a year, and introduce a carbon market initiative that would benefit both the developing and industrialised countries.
"We cannot continue to rely on fossil fuels and an aging energy infrastructure," he said. "By working together to make the best use of our resources, we can leave a cleaner, more enduring legacy for future generations," he added.
"While Asia is making great progress, it is still a patchwork of development. Thus, deeper regional cooperation and integration is the thread to transform the region into a harmonious tapestry of progress for all," he observed.
Across the region, countries are joining forces to confront problems that transcend borders, including natural disasters, AIDS, SARS, and Avian flu. "All of these events and developments-our setbacks as well as our progress---should inspire us to take our cooperation efforts even further. Regional cooperation and integration is an idea whose time has come," he exhorted the ADB member-countries. Stating that Asia stood at a defining moment now, he said "we are a resourceful region-a region with the maturity, experience and confidence to make the policy and investment choices that fill finally the lift the veil of poverty from our region."
"There can be only one Asia-one face of Asia, with opportunities open to all. An Asia and Pacific where every individual can live with dignity-free of poverty and sharing in prosperity. I assure you all that ADB will continue to be your partner in this journey for human progress," he told the 2,500-odd delegates who are attending the four-day event.
