Keynote Speech
- ADB Annual Meeting -

 

2012. 5. 4
Minister of Strategy and Finance
Bahk, Jaewan

 

 

 

Ⅰ. Introduction

Honorable Chairman Cesar Purisima
Honorable President Haruhiko Kuroda,
Distinguished Governors,
And ladies and gentlemen,

First of all, it is a great pleasure
to be here, in this beautiful city.

And I feel particularly delighted
to see and feel the beauty of Manila Bay,
one of the best natural harbors in the world.

Also, I'd like to thank
the Philippines Government and all the ADB staff
for putting all this together,
and my special thank also goes to the citizens of Manila
for their warm hospitality.

 

Ⅱ. For Sustainable Growth in Asia

Ladies and gentlemen,

The global economy
is now showing signs of improvement,
but several risks still remain,
including the Eurozone's debt crisis, surge in oil price,
and increasing capital volatility.

As we all know,
in the wake of the global financial crisis,
the Asian economy led a global recovery
with outstanding economic performance.

Nevertheless,
there are also challenges that Asia must address
in order to ensure strong economic growth in the future.

To that end,
I'd like to suggest a vision for the Asian region
with the so-called "3S Economy (Stable, Solid and Sustainable Economy)."

First, from a short-term perspective,
what we need most is a "Stable Economy."

The Asian economy so far has experienced
unstable and volatile capital flows.

To cope with such external vulnerability,
we must strengthen regional financial safety nets
while enhancing financial cooperation at the same time.

In this context, it holds great significance
that yesterday, ASEAN+3 countries
agreed to double the size of the CMIM (Chiang Mai Initiative Multilateralization),
and to introduce the crisis prevention function.

In order to keep this momentum going,
we should develop more comprehensive financial cooperation,
such as institutionalizing the AMRO (ASEAN+3 Macroeconomic Research Office)
as an international organization,
and extending the scope of cooperation
beyond ASEAN+3 to the whole Asia.

Second, we need a "Solid Economy"
that can ensure self-sustaining economic growth.

Until now the Asian economy has relied heavily
on exports to Europe and North America
to generate growth.

 

However,
in the face of sluggish recovery in advanced economies,
it is necessary to find a new engine of growth
from domestic demand
and intra-regional trade as well.

First of all,
Asian countries should continue structural reforms
to build the foundation for robust domestic demand.

And among these
are increase in infra structure investment,
deregulation of the services sector,
and opening domestic markets to foreign competition.

In parallel,
we should strive to establish more FTA networks
within the region
and promote cross-border trade and investment.

By doing this,
I am sure
that Regional Value Chain will be gradually strengthened,
helping us come closer to
our vision of "One Asia."

Third, we need a "Sustainable Economy"
that can encompass the concept of inclusive and green growth.

Inclusive Growth is first and foremost important,
and through which,
the region's growing inequality could be well addressed.

As part of these efforts,
the region should create more jobs
through employment-friendly growth,
and facilitate balanced development across regions.

Also, to narrow the development gap between countries
we should continue our support,
notably in the form of ADF,
to enhance capacity building of the low-come countries.

What's also important is Green Growth
(to build a sustainable economy).

As you well know,
Asia is most vulnerable to climate change
and in turn,

Asia can exert a huge influence on climate change as well,
given development needs in this region.

Korea adopted "Low Carbon Green Growth"
as a national policy vision in 2008,
and led related discussions in the international fora
including the G20.

Also, we now support developing countries in their efforts
to better cope with climate change.

As an early mover in Green Growth,
Korea very much hopes
to host the Secretariat of the GCF(Green Climate Fund),
and through all this,
we'd like to contribute to the international community's
addressing climate change.

Ⅲ. The forefront of Asia's change

To realize such a vision of the "3S Economy" for Asia,
I believe the role of the ADB
is critical as a key regional development partner.

Already, the Bank has made remarkable progress
in reducing poverty
and facilitating economic development in Asia.

However,
the environment surrounding ODA(Official Development Assistance)
is changing rapidly:
traditional aids from rich countries are declining;
developing countries' voices are growing
in the global community;
and emerging economies begin to play a bigger role
as a bridge between developed and developing countries.

The recent leadership change at the IMF and World Bank
well demonstrates
that such international institutions are called upon
to better reflect all the voices
commensurate with changing global economic governance.

Based upon those changes,
I'd like to ask the Bank to focus on the following 3 points.

First is Responsiveness.

The Bank should respect the diverse voices from the region
and be able to meet the needs of various partners,
including donor and recipient countries,
private sector and civil society.

Second is Transparency.

The decision-making process and all the information
should be available and open to the public,
thereby further solidifying the Bank's standing
as one of the most trusted institutions.

Third is Dynamism.
Through continuing result-based innovation,
and by widening the pool of young talent and fresh ideas,

the Bank should be at the forefront of Asia's change,
as a vigorous institution.

Ⅳ. Closing Remarks

Ladies and gentlemen,

A great Philippines national hero,
Jose Rizal once said
that "You must shatter the vase to spread its perfume,
and smite the rock to get the spark."

Tough changes will be necessary
to ensure Asia's prosperity and development.

But, however tough this may be,
if all the countries in Asia and the ADB
join and work together,
we won't have to go a long way
to achieve the "3S Economy."

Thank you for listening.

 

 

Please refer to the attached PDF file