Jobs, climate change critical to make Asia ‘vibrant’: Nakao – Economic Times
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In the opening address at the 49th Annual Meeting of Asian Development Bank’s (ADB) Board of Governors here, he expressed confidence that Asia-Pacific’s long-term outlook is “strong”, despite a slowdown in some economies this year.
About quality jobs, he said ADB is contributing to job creation and improved workplace conditions by supporting education and skills development for the youth, particularly young women.
Besides, the bank is promoting core labor standards and investing in key infrastructure such as power plants, roads, and railways, especially in fragile and conflict-affected countries, Nakao added.
“Jobs empower people and reduce poverty in the most fundamental way… employment opportunities, especially for our youth, are essential to make the economy vibrant and to promote social stability. We should also ensure a safe and decent work environment,” he said.
He emphasised that the private sector is Asia’s “engine of growth”.
By driving innovation and creating opportunities, he said the private sector has become “the basis for Asia’s vibrant future.”
In 2015, ADB directly provided USD 2.6 billion in finance to private sector companies and projects, up 37 per cent from 2014.
“It ranged from supporting financial sector development, to delivering infrastructure, to providing critical social services through the private sector — all with a strong focus on poorer countries,” he said.
For every dollar ADB provides, it mobilises at least USD 4 more in commercial financing. ADB is also promoting public-private partnerships by helping prepare bankable projects to attract private investment.
The third area Nakao pointed is climate change.
“Climate action is fundamental to the region’s sustainable development,” he said.
ADB has pledged to double annual climate financing to USD 6 billion by 2020 as evidence of its commitment to action. Partnerships with the private sector and other co-financiers are key to delivering the finance and new technologies needed.
He also looked back at the progress ADB has made over the past year in terms of both quantity and quality. ADB’s own loan and grants approval hits a record USD 16.3 billion in 2015, a 21 per cent higher than in 2014.
With an additional USD 10.7 billion in cofinancing, total financial support to developing member countries reached USD 27 billion last year, also a record high.
Nakao reviewed the economic outlook of the region and observed that Asia’s long-term growth potential is strong. In many Asian countries, the population remains young and is growing.
This will bring large demographic dividends if we can create quality jobs, he said. The middle class is expanding, providing a basis for strong consumption. There is still much scope to grow and catch up with advanced economies, he added.
In order to realise their full growth potential, he said “Asian countries must maintain sound macroeconomic policies, invest more in infrastructure, human capital and technology, develop efficient financial markets and improve the investment climate.”
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable practices and regional integration.
Established in 1966, ADB in December 2016 will mark 50 years of development partnership in the region. It is owned by 67 members, including 48 from the region.
Jobs, climate change critical to make Asia ‘vibrant’: Nakao – Economic Times}