HYDERABAD, INDIA
A pan Asian Free Trade Area could be the future of the region, India’s Prime Minister Manmohan Singh told the formal opening of ADB's 39th Annual Meeting of the Board of Governors in Hyderabad today.
India has concluded numerous free trade agreements with the South Asian Association for Regional Cooperation (SAARC), Singapore, and Thailand, and is working on similar arrangements with the Association of Southeast Asian Nations (ASEAN), Japan, People's Republic of China and Republic of Korea, he said.
"This web of engagements may herald an eventual free trade area in Asia covering all major Asian economies and possibly extending to Australia and New Zealand," he said.
"India is determined to carry forward the India-ASEAN partnership to an enlarged domain for making the 21st century a truly Asian century."
Mr. Singh was delivering his opening address for ADB's Annual Meeting, at the Hyderabad International Convention Center, alongside P. Chidambaram, Chairman of ADB's Board of Governors and Indian Minister of Finance, and ADB President Haruhiko Kuroda. Their speeches were followed by a cultural presentation of singers, acrobats, and dancers.
Mr. Singh said that the Asia and Pacific region has shown its capacity to deal with the challenge of globalization and that as it looks ahead, it needs to take stock of the lessons of the Asian financial crisis.
The region has become an engine of global growth, he said. "However, East and Southeast Asia, including India, are bound to increase their profile and relevance to the global economy," he said. Asia will continue to increase its share of world GDP, but will demand better infrastructure and seek improved services.
Mr. Singh said there is scope for peer learning within Asia from the successes of other countries. "There is a lot to learn from the Chinese economic experience," he said, "and the ADB can certainly facilitate it."
His words were echoed by Mr. Chidambaram, who in his opening address said the region's challenges highlight the importance of a regional development bank like ADB.
"ADB is uniquely positioned to transfer the benefits of its experience from one economy to another," he said. "It can provide not only the financial resources, but also the best possible practices in its areas of expertise."
Mr. Chidambaram said that developing Asia is witnessing a resurgence that has led to a renewed energy and optimism and the means to reduce poverty.
"With decades of rapid growth behind us, and positive prospects ahead, Asia is enjoying an unprecedented position of influence in the global economy," he said.
"The years ahead should be years of growth and opportunity that will allow us as an important member of the international community to make further progress in the fight against poverty. It is important that we seize this opportunity to take on the many arduous challenges that remain."
He added that these daunting challenges include providing quality infrastructure, and responding to environmental issues such as air and water pollution, acid rain, climate change and greenhouse gas emissions.
He also stressed that progress cannot occur in isolation.
"Countries must collaborate to improve the ability of each to manage their development challenges and compete in the global economy," he said.
"Intensifying our efforts in regional cooperation is critical to ensure that all of Asia becomes the model for equitable, sustainable growth and a motivator for global prosperity, stability, and peace."
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Source: Asian Development Bank