ADB turns sights to smaller economies

Some of these smaller economies are facing challenges, Nakao told a press conference at the multilateral lender’s annual meeting in Fiji.
 “We should pay attention to the fiscal needs of these countries and allocate a larger amount of concessional support to smaller economies,” he said.
Last year, ADB operations continued to grow, with commitments, including loans and grants, reaching US$21.6 billion, up 10 per cent from the $19.7 billion committed in 2017. Direct value-added cofinancing deals signed last year hit a record high of $14 billion, up from $11.8 billion in 2017; disbursements also reached a record level, $14.2 billion, in 2018, some $2.7 billion more than for the previous year.
 “The ADB’s total loan and grant commitments last year were $21.6 billion, compared to $13.9 billion in 2013 when I was appointed president of the ADB,” he told the press conference, held as part of the five-day annual meeting.
Nakao stressed the importance of development projects in India, as the nation is one of the largest borrowers from the ADB. In Southeast Asia, he foresees great potential for cooperation with emerging economies including Vietnam. He said the ADB had already reduced lending to China.
Nakao said the bank has been re-engaging with Thailand over the past two years ago, as the Kingdom has not borrowed from it since 2009. Thailand is still part of ADB’s core strategy, he said, hinting at the likely resumption of concessional loans for some projects in the country.
Driven by the increased number of value of projects, Nakao underscored the importance of civil society organisations. To this end, the ADB has been actively negotiating with such groups over the past few years.
Nakao said the bank has been involved in a lot of discussions on addressing key issues including income, access to finance and strengthening institutions.
“Lending is not just about money. It means we do things together and win together,” he said.
At an earlier session yesterday, Nakao unveiled the ADB’s strategy for the Pacific. He stressed the importance of youth in the development of economies around the world.
 “ADB is a strong believer in the youth. We recognise that today’s youth are innovative, driven, and agile changemakers who can bring significant value to ADB’s work across the region,” he said.
“Under ADB’s new Strategy 2030, our engagement with youth has evolved from listening to their voices and dreams, to building their capacity and working with them on strengthening our operations.”
Nakao highlighted that more than 2 billion people in Asia and the Pacific are under the age of 30.
“Young leaders are truly a positive force for change in Asia and the Pacific. We have talented entrepreneurs, hi-tech innovators, teachers and changemakers, environmentalists and climate champions, athletes and artists, to name a few,” he said.
Yesterday, the ADB released its annual performance report, which showed the bank’s response to climate change and support for gender equality accelerated last year.
Last year, financing for private sector operations reached new heights, with commitments increasing by 37 per cent to $3.1 billion from $2.3 billion in 2017. Private sector operations’ share of the total signed ADB financing rose to 19.3 per cent from 13.3 per cent in 2017. Education commitments reached a record 7.5 per cent share of total commitments, according to the report.