“Leading through global influence and strong country presence”-
The world is going through rough times amidst the COVID-19 outbreak. Dealing with the aftermath of the pandemic will require strong resilience strategies. On February 5, 2020, in his Town Hall address to the Asian Development Bank (ADB) staff Masatsugu Asakawa, President, ADB, discussed the Bank’s vision for the future and ADB’s focus areas going forward. On March 18, 2020, he also announced a $6.5 billion initial response to the COVID-19 pandemic. Excerpts from both the speeches….
I am very excited to be back at ADB and the Philippines after 30 years.
We are now facing a serious regional and global challenge caused by the coronavirus. I want to extend my deep sympathy for those who suffer from these events. Let me also stress that ADB management is providing support to the staff and families of our resident mission in People’s Republic of China. ADB continues to monitor the situation closely and stands ready to provide swift assistance to affected countries if requested.
High quality infrastructure principles are very important for our developing member countries. Universal health coverage is becoming a priority for many of our clients. Ageing, which was a topic never before discussed in the G20 until the meetings under the Japanese presidency, is increasingly relevant to our members in the face of demographic trends. Strengthening domestic resource mobilisation with well-designed tax policy and strong tax administration is a foundation for all countries to achieve the Sustainable Development Goals. I believe ADB can draw from the progress made in G20 discussions in our operations where relevant.
Development challenges for the Asia-Pacific region
As I begin my tenure here as president of ADB, I want to highlight the remarkable achievements of countries in Asia and the Pacific in recent decades.
Since 1990, when I was previously an ADB staff member, GDP per capita in developing Asia increased from $1,078 to $4,093 in constant 2010 dollars. Average life expectancy extended from 63 years to 71.8 years. Years of schooling increased from 6.4 years to 8.9 years. Many countries now work together under regional cooperation and integration initiatives, which provide a basis for regional stability and economic growth.
I am proud that ADB has been a reliable partner for clients in these successful journeys. However, I also bear in mind that our region is undergoing fundamental and structural change caused by three major factors: globalisation, digitisation, and ageing. With this in mind, let me present the key issues that I want to address during my tenure.
Climate change: I believe that protecting the environment and tackling climate change is a foundation, rather than an obstacle, for economic growth. The poor and the vulnerable suffer the most from the impact of climate change, ocean pollution, and natural disasters. I am proud that ADB achieved the target of doubling our annual climate finance to $6 billion last year. Let us continue to be a leader in the global community that helps keep our planet livable by offering concrete actions to address climate change.
Developing quality infrastructure with private sector participation: Infrastructure is still a major priority in the region. Our analysis found that there is a $1.7 trillion infrastructure need in Asia and the Pacific annually. This will continue to pose a barrier to development if not addressed. We should bear in mind that multilateral development banks (MDBs) are not enough to meet these financing needs.
We must mobilise more private sector resources to support infrastructure development. At the same time, let us focus more on maintaining quality as much as quantity. We have to look at issues such as life cycle cost, environmentally friendly approaches, disaster-proof design, technology and knowledge transfer, and debt sustainability. Let us also encourage our clients to embrace advanced technologies so that they can reap the benefits of digitisation.
Mobilising domestic resources: We should also support our developing member countries in the area of domestic resource mobilisation. Strengthening tax policy and administration will be a key priority, including in the area of international taxation and exchange of tax information across countries. This will support broader efforts to strengthen governance as well as global initiatives to combat money laundering and terrorist financing. It is also important to increase domestic savings and channel resources efficiently through improving the financial sector and domestic capital markets.
ADB in the future
Going forward, I want to highlight three key areas that will enable ADB to keep up with changing circumstances in our region and globally.
First is to further develop our explicit and tacit knowledge to help solve emerging issues with our clients. These include ageing, disaster preparedness and response, and a widening income gap. We should also disseminate our practical and cutting-edge knowledge within and beyond Asia and the Pacific. Let us create new development models that can eventually be replicated across the globe, so that ADB will stand out as a leading development institution with global impact.
Second, I want to take full advantage of ADB’s unique feature of having private sector and sovereign operations under one roof, with one balance sheet. Our One ADB approach will consolidate our expertise and knowledge seamlessly. We will further promote staff mobility, enhance knowledge sharing, and equip promising staff with a broader perspective to apply an integrated approach to our operations. I believe a person with a breadth of experience is better able to manage a diverse workforce.
Third, let’s foster a culture of innovation. To stimulate innovation, we should nurture a corporate culture that promotes mutual respect among staff at all levels. I will take the lead in creating an environment where everyone can contribute in the most effective manner – regardless of nationality, job category, gender, sexual orientation, ways of thinking, or religion.
In conclusion, I want to remind myself of the motto introduced by the first ADB president Takeshi Watanabe: “Learn before teaching.” As the new president of ADB, I am keen to learn from staff, board members and management, clients and development partners. I believe careful listening will prepare me to do my best as I lead this institution.
Just as I listen and learn, we as an institution must do the same in our efforts to evolve from the role of “home doctor”, so that we can best serve as the partner of choice for our clients – known for its global influence and strong country presence.
Let me conclude this address by offering my heartfelt thanks for the contributions you make every day to our mission. It is my immense pleasure to join you in pursuing our common goal: achieving a more prosperous, inclusive, resilient and sustainable Asia and Pacific.
