ADB marks half century of helping Asia region

He stressed the importance of the role the bank continues to play in a world witnessing growing demand for infrastructure projects, especially in Asia, where China’s “One Belt, One Road” policy is garnering attention. 
Nakao, the ninth ADB president, spoke head of the ADB’s 50th annual meeting scheduled for May 4-7 in Yokohama.
ADB, led by Japan and the United States, was established in 1966. 
“Then, Asia was vastly poor,” Nakao said in a telephone interview. 
The region’s gross domestic product per capita, excluding Japan, Australia and New Zealand, was below the level of sub-Saharan African countries, he said. 
“Asia’s already huge population was further growing at an alarming speed, making food shortages and malnutrition the most pressing issues of the region.”
Asia now makes up about one-third of the world economy and is growing annually at around 6 per cent. 
ADB forecasts Asia’s developing economies to expand by 5.7 per cent this year and to continue growing at a solid pace. 
“If the region keeps its pace for the next 10 years, the region’s wealth will be about twice the current size,” he said. 
Earlier, countries like Vietnam, Laos, Cambodia and Myanmar were not truly integrated with other parts of Asia either, as they had long been trapped in wars or isolationism. 
These countries, however, made the transition to market-oriented policies, with Doi Moi in Vietnam, for example, beginning in 1986. That country returned to ADB’s programme in the 1990s.
It is significant these states have gradually been reintegrated into the dynamism of a growing Asia and its production networks. 
ADB has helped such states through project loans or policy-based budget support loans, which have always been open to those wanting the bank’s help. 
“One can say one result of the ADB’s work is to help create this huge economic zone in Asia,” he said. 
Such growth creates demand in Asia for more funds for infrastructure. 
The infrastructure needs in Asia’s developing countries will exceed US$26 trillion (Bt900 trillion) through 2030, or $1.7 trillion per year, according to the bank’s latest outlook. 
Nakao said the ADB would strengthen loans for private companies and utilise private funds through public-private partnerships to build railways, highways and renewable power infrastructure, in addition to expanding the ADB’s loan programmes to governments.
One key ADB policy is providing technical and environmental assistance to countries taking the loans. 
The institution encourages countries to adopt more open economic policies, such as deregulation, and urges regional coordination.
The bank is designing its strategy toward 2030 with a focus on issues such as continuing support to fill the region’s large infrastructure demand using more advanced technology, countering climate change based on countries’ commitments to the COP21 Paris Agreement, eliminating absolute poverty, improving national health and technical and vocational education systems, and strengthening disaster management throughout the region.