Asia-Pacific urged to strive for inclusive, green growth
-
04/05/2012
-
Business Recorder (Pakistan)
Asia-Pacific countries were urged Friday to strive for economic growth that would not leave anyone behind in poverty and protect the environment despite risks from a weak global economy.
While growth in the Asia-Pacific region is strong, Haruhiko Kuroda, president of the Manila-based Asian Development Bank, said successful economies must be inclusive, green and knowledge-led.
"Tomorrow's successful economies will be well-governed economies, with broad access to opportunities and services to promote the wellbeing of their people and enhance their quality of life," he told the bank's annual Board of Governors meeting in Manila.
"They will thrive while reducing energy use to create a healthier, safer world for their children," he added.
"They will innovate, take risks and discover new ways to advance their society.
These are the standards to which we all must aspire."
The bank earlier warned that despite strong growths in Asia and the Pacific, inequality was rising and several hundred millions of people still live below the 1.25-dollar-a-day poverty line in the region.
Kuroda said the region must not slacken up in implementing long-term reforms while keeping vigilant against near-term risks such as volatile capital flows and inflationary pressures.
Standard & Poor's Ratings Services President Douglas Peterson said the economic situation in Europe and the US was "very worrisome" for Asia and the Pacific, but also creates an opportunity for the region.
"Given the stretched banking systems across the globe, alternative sources of financing will need to be found and we believe that Asian credit markets - if developed further - have an opportunity to help fill the funding void," he told the board.
Peterson noted that S&P estimates that bank loan and debt capital markets would need to finance more than 40 trillion dollars of corporate borrowings in the next four years in Europe, the United States, China and Japan.