By Saritdet Marukatat and Parista Yuthamanop
May 9, 2000
The Asian Development Bank wrapped up its 33rd annual meeting yesterday, with plans to combat poverty in disarray due to differences among major shareholders. Tadao Chino, the bank president, said in a closing press conference that most of the 58 member countries were behind the capital-raising programme needed to meet the goal of sharply reducing the region's poor, now numbering 900 million, by 2025.
Unlike Japan, the United States has opposed the initiative, while some European members expressed reservations. The US and Japan are the main shareholders, each holding 16% of voting power in the bank. The US wants the bank to show more effective use of existing funds by a better selection of projects to really serve the needs of recipients.
In a board meeting on Sunday, the US said Washington "did not foresee a need, or the prospect of broad support" for more funds for the bank. Asked about the American position, Mr Chino, a Japanese national, said: "Most countries represented on the board of governors support the initiative." The Europeans had neither opposed nor supported the call.
"We need the resources," he said. "Without government representatives' support, we can't do anything."In contrast to Washington, Mr Chino, in a statement released at the end of the meeting in Chiang Mai, said he had noted broad support for the bid over the past three days.
"In order to fight poverty across developing Asia, and to achieve progress towards the International Development Goals, the ADB needs adequate resources," the statement said.
The bank will undertake a study on more financial support which will be tabled for a decision from the board of governors at the next convention in Honolulu, Finance Minister Tarrin Nimmanahaeminda told a separate press conference.
Calls for reforms at the bank, greater co-operation among Asian countries as they recover from the financial crisis, and more private-sector participation were key issues taken up by the board of governors chaired by Mr Tarrin. They agreed that the bank had to be reformed to better cope with changing situations in the region and better serve their needs. Asian countries had to build up intra-Asia relations and boost relations with the global community, while their private sectors had to be brought in to participate in the bank's activities. In the face of growing calls for reforms, Mr Chino said the bank was ready for the challenges ahead, and would prove as much by turning its vision on poverty reduction into action.
New offices to be opened in the region and close consultations with all stakeholders would bring about better performance by the bank, he added
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