HARUHIKO KURODA President Asian Development Bank INTERVIEW

he Asian Development Bank (ADB) is widely recognized as one of Asia’s most important sources of development aid, with a lending volume of some $6 billion a year and millions more earmarked for technical assistance and direct grants. Last year the ADB provided $600 million in grants to four countries that were hit hard by the December 2004 tsunami, namely India, Sri Lanka, Indonesia and the Maldives.
Currently, the ADB is leading the charge for monetary reform by helping ASEAN countries launch cross-border trading vehicles that will improve liquidity in currency swap markets within the ASEAN member nations. It is also helping to keep the region’s economic growth rising at a high rate.

“Whether these high rates of growth will continue depends largely on the performance of the world economy as a whole. But domestic demand, strong investor sentiment and other factors bode well for the foreseeable future,” explains ADB President Haruhiko Kuroda (INTERVIEW).

According to the ADB president, the bank wants to take on a more proactive role as a catalyst and coordinator for regional cooperation and integration.

“This is a special and unique mission of a regional development bank,” Mr. Kuroda notes. “And closer integration is an area of critical importance to the competitiveness of Asian economies in today's global market. We have to encourage further integration, and we can do more. I hope in the next five years or so Asia will further integrate, further grow and further reduce poverty among its people. That is the most important point.”

Another challenging issue, Mr. Kuroda says, is how to make the ADB more flexible, responding to the needs of each country. “If you take a look at the ASEAN countries you will see their income levels differ significantly from one country to other. Just compare Cambodia or Vietnam with the Philippines or Malaysia. The size of the countries is a factor as well; Indonesia is the largest Muslim country in the world, having more than 241 million people. Vietnam and the Philippines each have more than 80 million people. Also Thailand has a population of more than 65 million. But Laos has around 6 million and Singapore around 4 million. The ASEAN countries are so diverse and yet they are trying to integrate. I would like to make ADB more responsive, more relevant, and more result oriented.”

Mr. Kuroda says he strongly believes that Asia will continue to grow, to develop, and relieve poverty, which basically means a bright future for the region. “Asia is a great opportunity for the world. There is so much potential but also there are many poor countries in this region. China and India are growing at a fantastic rate, and they are contributing greatly towards relieving poverty.”