ADB president: Asia-Pacific region should rebalance growth

Special
Report: Global Financial Crisis

BALI, Indonesia, May 4 (Xinhua) -- The Asia and Pacific region must
rebalance growth amid the influence of global financial crisis, said Asian
Development Bank (ADB) President Haruhiko Kuroda on Monday at the opening
session of the 42nd ADB Board of Governors Annual Meeting in Bali, Indonesia.

"By rebalancing export-driven growth with a greater reliance on domestic
demand and consumption, Asia can lead the way in charting a new, globally
beneficial development course," he said.

In that case, Kuroda called on Asian countries to reinforce domestic demand
and revitalize their domestic economies. He said that these countries need to
spend more on health, education, and social security to reduce household needs
for precautionary savings; need strategies to transfer more corporate savings to
households to encourage greater consumer spending; and need the policies that
promote small and medium-sized enterprises and service industries to better
align domestic production with domestic demand.

Kuroda added that rebalancing also requires a stronger and more stable
regional investment climate to channel savings into effective and efficient
investment within the region. Therefore, Asia needs a seamless infrastructure,
which includes physical assets and the enabling policies, regulations, and
institutions.

"ADB's infrastructure investments last year totaled more than 5billion U.S.
dollars in transport and energy alone. But with financing needs estimated at 750
billion dollars a year, much more needs to be done," he said.

"With Strategy 2020, the replenished Asian Development Fund, a substantial
capital increase and our ongoing commitment to institutional effectiveness, ADB
is well-positioned to play an expanded role in the region's future development,"
Kuroda said.