Transcript Slide 1

A Joint Conference of ADBI and RIS on
Sustainable Growth and Enhancing Integration in Asia
Masahiro Kawai
Dean and CEO, Asian Development Bank Institute
15 September 2010, New Delhi
The views expressed in this presentation are the views of the author and do not necessarily reflect the views
or policies of the Asian Development Bank Institute (ADBI), the Asian Development Bank (ADB), its Board of
Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in
this paper and accepts no responsibility for any consequences of their use. Terminology used may not
necessarily be consistent with ADB official terms.
•
The book was published in
September 2009
•
It received strong attention
from senior policymakers and
media in Asia and beyond
•
APEC Financial Minister
Statement for Singapore
Summit quoted estimates on
infrastructure needs
•
50,000 downloads in first
month after website posting
•
ASEAN economies have
decided to create an ASEAN
Infrastructure Fund similar to
Asian Infrastructure Fund
proposed in the book
•
Translated into Chinese and
Japanese
ADBI-RIS Joint Conference on Sustainable Growth and Enhancing Integration in Asia
15 September, New Delhi
Outline
• Need for Infrastructure
• Objectives
• Definition, Scope, Coverage, and Vision
• Infrastructure Financing Requirements
2010–2020
• Meeting Financing Needs
• Key Messages
• Conclusion
ADBI-RIS Joint Conference on Sustainable Growth and Enhancing Integration in Asia
15 September, New Delhi
Need for Infrastructure
The recent global crisis provides 5 reasons for increasing
infrastructure investment in Asia:
I.
II.
III.
IV.
V.
Enhances competitiveness, productivity, and economic
recovery, and helps to sustain medium to long term growth
Helps to increase standards of living and reduce poverty by
connecting isolated places and people with major economic
centers
Promotes environmental sustainability through proper designing
Forms an important part of fiscal stimulus packages, especially
if the global economy has a double-dip
Helps to increase regional demand and intraregional trade for
rebalancing Asia’s growth
ADBI-RIS Joint Conference on Sustainable Growth and Enhancing Integration in Asia
15 September, New Delhi
Objectives
• Summarizes the key issues and challenges in
strengthening cross-border connectivity in Asia
• Examines benefits and costs of regional
infrastructure
• Estimates the financing requirements for
developing Asia’s infrastructure
• Provides recommendations for effective programs,
policies, and institutions for regional infrastructure
• Presents a framework for pan-Asian infrastructure
cooperation toward a seamless Asia
ADBI-RIS Joint Conference on Sustainable Growth and Enhancing Integration in Asia
15 September, New Delhi
Scope and Coverage
• Issues and challenges for regional infrastructure
in Asia up to 2020
• ADB’s 44 DMCs
• Broad pan-Asian initiatives and sector-specific
subregional efforts—transport, energy, telecoms
• Focus on “soft” infrastructure—policy, regulatory,
governance, trade facilitation, and institutional
frameworks—to support development and
operation of “hard”, or physical, infrastructure
components and to facilitate regional trade
ADBI-RIS Joint Conference on Sustainable Growth and Enhancing Integration in Asia
15 September, New Delhi
Definition:
Regional Infrastructure Projects
• Cross-border (or transnational) projects that
involve “hard” and “soft” infrastructure
spanning two or more neighboring countries
• National projects that have a significant
cross-border impact in stimulating regional
trade and income or in connecting with the
network of neighboring or third countries
ADBI-RIS Joint Conference on Sustainable Growth and Enhancing Integration in Asia
15 September, New Delhi
Long-Term Vision: A Seamless Asia
• Creation of a Seamless Asia—an integrated
region connected by world-class, environmentfriendly infrastructure networks
• In view of Asia's enormous untapped economic
potential and the global financial crisis, now is
the time to build efficient and seamless
connections across Asia and with the rest of the
world for a more competitive, prosperous, and
integrated region
ADBI-RIS Joint Conference on Sustainable Growth and Enhancing Integration in Asia
15 September, New Delhi
Financing Needs for Asia’s National
Infrastructure by Sector: 2010-2020
ADBI-RIS Joint Conference on Sustainable Growth and Enhancing Integration in Asia
15 September, New Delhi
Indicative Investment Needs for Regional Identified and Pipeline
Infrastructure Projects: 2010-2020
ADBI-RIS Joint Conference on Sustainable Growth and Enhancing Integration in Asia
15 September, New Delhi
Meeting the Financing Needs
• On average, Asia needs to invest about US$750
billion per year in infrastructure (both national and
regional) during 2010-2020
• The region’s vast domestic savings can serve as the
main source of financing for Asia’s infrastructure
• Strengthen national and regional local currency
bond markets—notably the ASEAN+3 Bond Markets
Initiative and the Asian Bond Funds
• Identify and prepare “bankable” projects to
encourage private financing and participation
involving public-private partnerships (PPPs)
ADBI-RIS Joint Conference on Sustainable Growth and Enhancing Integration in Asia
15 September, New Delhi
Key Messages
This is the first time that such a study on regional infrastructure has
been undertaken.
1)
During 2010–2020, Asia needs to invest about US$8 trillion in
national infrastructure and US$290 billion in specific regional
infrastructure projects—an overall average infrastructure investment
of about $750 billion per year
2)
The required infrastructure investment would produce substantial real
income gains of about US$13 trillion for developing Asia during the
same period and beyond
3)
A “Pan-Asian Infrastructure Forum (PAIF)” should be established to
help coordinate and integrate existing subregional infrastructure
initiatives toward the Seamless Asia vision
4) An “Asian Infrastructure Fund (AIF)” is needed to mobilize
international funds (public and private) and help prioritize,
prepare, and finance “bankable” regional infrastructure projects
ADBI-RIS Joint Conference on Sustainable Growth and Enhancing Integration in Asia
15 September, New Delhi
A Framework
for Pan-Asian
Infrastructure
Cooperation
ADBI-RIS Joint Conference on Sustainable Growth and Enhancing Integration in Asia
15 September, New Delhi
Conclusion
A Framework for Pan-Asian Infrastructure
Cooperation Requires:
• A common vision, strong leadership, and a
shared commitment by Asian leaders
• Strong institutional capacities at the national
level
• Coherent infrastructure development at the
national, subregional, and regional levels
• Pan-Asian infrastructure strategies to prioritize
investments and coordinate policies
ADBI-RIS Joint Conference on Sustainable Growth and Enhancing Integration in Asia
15 September, New Delhi
Conclusion (cont’d)
•
Effective planning and implementation of projects to
ensure “win-win” outcomes among participating
countries by:
– Addressing the issue of asymmetric distribution of
projects’ costs and benefits
– Managing negative socioeconomic impacts
•
Effective financing framework to help mobilize the
region’s vast savings and encourage PPPs
•
Asian economies, together with international and
regional development partners (e.g. ADB, WB, and
UNESCAP), bilateral organizations (e.g. from Japan,
Korea, Singapore, PRC and India) can work together to
achieve a Seamless Asia
ADBI-RIS Joint Conference on Sustainable Growth and Enhancing Integration in Asia
15 September, New Delhi