ADB launches new strategy

ADB launches new strategy

MANILA (AFP); Asia's premier development bank on Thursday
launched a new strategy aimed at strengthening the role of the
private sector as the driving force to sustain the region's
recovery from financial crisis.

The new strategy announced by the Asian Development Bank (ADB)
is seen as a complement to its main thrust of reducing the
region's massive poverty because it can free much-needed
government funds for health services, education and social safety
nets.

"The strategy consists of a systematic and coherent framework
that will guide the ADB's activities to promote private sector
development across the region," the Manila-based regional
institution said in a statement.

Under the scheme, ADB will work toward three main aims:
creating the conditions for business to thrive, generating
business opportunities and catalyzing private investments.

One major focus is rooting out corruption to encourage
investments.

"There is no greater disincentive to business than the feeling
of uncertainty and vulnerability brought about by corruption,
abuse of discretion and bureaucratic interference," the bank
said.

It vowed to help promote effective governance in both the
private and public sectors.

In the private sector, the bank said it aimed to "promote good
governance through various means such as reviews of commercial
laws and regulations and establishment of credible accounting and
auditing standards."

Developing a well-functioning financial system is another
thrust, the bank said.

This would include support for policy reforms, enhancing
regulation and supervision, establishing sound banking systems
and the development of a deeper and broader securities market.

To balance development goals with commercial interests, the
bank said it will work toward greater involvement of private
firms in fields such as energy, water, waste water treatment,
transport, telecommunications and even in the social sectors.

ADB also will work to involve the private sector in regional
and subregional projects, saying that "regional and subregional
cooperation has emerged as an increasingly important strategy for
development in Asia."

The bank said earlier this month that Asia had recovered
faster than expected from the 1997 financial turmoil, but
cautioned against becoming complacent because risks still
remained.

One of the risks was the ballooning budget deficits of
governments which had to take a larger role in stimulating
economies as private firms stung by the crisis slackened on
investments.

ADB is subscribed to by 57 member countries, the largest
donors being Japan and the United States.