Asia needs $1t to fund infrastructure projects<\/p>\n
MANILA (Reuters): Asia will need up to US$1 trillion over the
\nnext 10 years to fund infrastructure development, Asian
\nDevelopment Bank (ADB) chief Tadao Chino said on Friday.<\/p>\n
Governments and international financial institutions must
\nattract these funds while avoiding the volatility of past capital
\nflows, he told the annual Asia Society conference in Manila.<\/p>\n
He said the private sector would supply the bulk of the funds
\nand that overseas capital alone could not meet the task.<\/p>\n
\"International financial institutions, together with others
\nincluding those in the private sector, must strike carefully a
\nbalance between liberalizing capital flows and the stability of
\ninternational capital markets,\" Chino said.<\/p>\n
\"The needs for external financing are tremendous.
\nInfrastructure of many countries in the region is still under-
\ndeveloped and has become one of the bottlenecks of its further
\neconomic development,\" he added.<\/p>\n
Chino noted other forecasters had made higher estimates of the
\nregion's infrastructure-funding needs over the next decade than
\nthe ADB's estimate of one trillion dollars. But he said they
\nwould be revised down because of Asia's financial crisis.<\/p>\n
He said Asia's high domestic savings rates must be tapped.<\/p>\n
\"We cannot therefore over-emphasis the importance of
\ndeveloping capital markets in the region,\" Chino said.<\/p>\n
He called on international financial institutions to back
\ncrisis-hit nations with adequate liquidity while governments
\nfocus on structural reforms without contracting the real economy.<\/p>\n
He also said institutions should not to be sidetracked from
\ntheir primary purpose of fostering development in the region.<\/p>\n
\"The issues that need to be addressed include poverty
\nreduction, economic growth, financial-sector development and
\nenvironmental protection,\" Chino said.<\/p>\n
\"While immediate support to the affected economies in response
\nto the outbreak of the crisis has been timely and necessary, we
\ncannot let the crisis blur our vision over the long run's
\ndevelopment objectives,\" he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asia-needs-1t-to-fund-infrastructure-projects-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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