ADB to increase funds for regional cooperation

Asian Development Bank has set an aim of increasing allocations for regional cooperation activities to 30 per cent.

KARACHI: The Asian Development Bank (ADB) has set an aim of increasing allocations for all regional cooperation activities to 30 per cent of its total operational spending by 2020.

In an announcement on its website, ADB said it has allocated more than $1 billion, or 10 per cent of the resources of its concessional Asian Development Funds, to regional projects between 2009 and 2012.

It said it has also expanded its regional Trade Finance Facilitation Programme from $150 million to $1 billion, and is working on an Asian Infrastructure Financing Initiative to pool resources for regional infrastructure needs.

The bank said this at the start of the ‘Second High Level Forum on Emerging Vision for Shared Prosperity: South Asia and Beyond’, being held at its headquarters from August 12-13.

Leading government officials from South Asia and neighbouring countries had assembled in Manila to discuss regional cooperation which will take stock of progress on work done to boost trade and develop cross-border road corridors and energy infrastructure.

The first forum in 2009 identified key focus areas for increasing physical connectivity, improving trade facilitation and developing cross-border energy infrastructure and trade in power.

This year’s event will focus on strengthening implementation in these key focus areas.

South Asia has taken many steps to boost regional cooperation over the past 20 years, including establishing a free trade area in 2006 and reducing tariff and non-tariff barriers. However, it is lagging behind East Asia in terms of regional integration.

In his welcome remarks, Kuroda spoke of the connectivity, energy availability and trade facilitation challenges that face the region, and the need to address these challenges in regional context to boost growth and alleviate poverty.

“The ongoing and proposed regional projects in information and communication technology, transport and energy are likely to make substantial impact on poverty reduction and inclusive growth by improving productivity and generating employment and income,” Kuroda said.

Published in The Express Tribune, August 13^th, 2010.