ADB meeting opens with row over "cultural imperialism"<\/p>\n
NICE, France (AFP): The Asian Development Bank opened its
\nannual meeting yesterday with a bitter row between donors and
\nborrowers that has led developing nations to describe loan
\nconditions as attempts at "cultural imperialism."<\/p>\n
The ADB annual meeting -- a financial jamboree being held for
\nthe first time on this continent -- opened under a springtime sky
\nin this French Riviera playground amid a raging debate between
\ndonors, led by the United States, and borrowers over proposed new
\nlending conditions.<\/p>\n
The 55 ADB member nations are expected to formalize a 100-
\npercent general capital increase to US$48 billion by May 22 but
\nhave yet to resolve a row over donor demands for greater
\ntransparency and accountability in borrowing countries, under the
\nhazy label "good governance."<\/p>\n
The new conditionality has been denounced as "cultural
\nimperialism" by borrowers, led by China and India, who
\nnevertheless are looking to the increase to meet growing needs in
\nthe face of shrinking development aid.<\/p>\n
French Prime Minister Edouard Balladur opened the meeting,
\ncalling for intensified economic and political ties between Asia
\nand Europe.<\/p>\n
"I strongly hope that links will be developed with Europe in
\nall areas which, in comparison with the level of relations
\nbetween Asia and North America, still remain insufficient," he
\nsaid.<\/p>\n
"For both sides the stakes are considerable," he said,
\nstressing the need to cooperate on security and stability and to
\nexploit the "economic complementarities" between Asia and the
\nEuropean Union.<\/p>\n
Shattering<\/p>\n
He cited the political dialogue between Europe and the six
\nAssociation of Southeast Asian Nations (ASEAN) member nations,
\nthe driving force promoting a permanent security forum in Asia,
\nwhere lingering territorial tensions threaten to shatter the
\npeace.<\/p>\n
Balladur also paid tribute to "pragmatism" in Asian societies,
\nsaying Europe had "much to learn" from them, adding that they
\nshowed that in developing countries, the state has a mission to
\n"guide" development without hindering private initiative.<\/p>\n
Bank officials say the debate on conditionality is expected to
\nspill over to the next round of ADB financial negotiations, this
\ntime for a replenishment of the bank's concessional Asia
\nDevelopment Fund (ADF).<\/p>\n
Talks on the ADF, which could start informally this year,
\ncould be even tougher because, unlike the capital increase, with
\na paid-in portion of only two percent, ADF contributions are
\nlarger and have to be appropriated according to a schedule by
\ndonor governments.<\/p>\n
The last ADF replenishment raised $4.2 billion for 1992-95.<\/p>\n
ADB President Mitsuo Sato, who took office last November in
\nthe midst of pressure to reform the 28-year-old institution,
\npledged in his opening speech to overhaul the bank's operations
\nwith a "time-bound action plan."<\/p>\n
An internal task force has called for a "spring cleaning" in
\nthe bank to weed out bad projects after last year's annual
\nmeeting, which was dominated by a public squabble between the
\nUnited States and Japan over the bank's future.<\/p>\n
The two hold voting parity in the bank, although Japan has
\ngreater contributions in concessional funds and traditionally
\ngets to pick the ADB president from among its finance ministry
\nelite.<\/p>\n
Sato said that the bank now had "very low lending headroom"
\nbecause of the protracted capital negotiations, and urged members
\nto subscribe to the increase as soon as it is formally approved.<\/p>\n
The United States, hampered by budgetary constraints, had been
\nlate on capital and ADF subscriptions in the past.<\/p>\n
Sato reiterated forecasts that the bank's developing members
\nwill continue to be the pace car for world economic growth in the
\nshort term, but called attention to poverty, which still afflicts
\n30 to 45 percent of their fast-growing populations.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/adb-meeting-opens-with-row-over-cultural-imperialism-1447899208",
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"sponsor_url": "https:\/\/okusiassociates.com"
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