US asks Asia to help adjust global imbalances
Imbalances need be addressed so that rapid global growth can be sustained.india Updated: May 06, 2006 17:26 IST
The United States on Friday asked the Asian nations to play a "critical role" in the process of adjustment to global imbalances by pursuing greater exchange rate flexibility, strengthening domestic demand and financial sector reforms.
"Economic adjustment is a shared responsibility to improve global imbalances and economic development," the US Temporary Alternate Governor Kenneth L Peel said, adding the strong growth and low inflation in Asia in the past few years came along with an emergence of global imbalances.
The imbalances should be addressed so that rapid global growth could be sustained, Peel said at an ADB annual session.
Pointing out that ADB's private sector operations have reaped positive results as more companies are able to access resources and expertise, he said the Manila-based institution should continue to create the right regulatory environment to foster strong public-private partnerships to promote growth.
The multilateral development banks were established to blaze development trails by taking risks that the commercial markets were reluctant to assume, he reminded ADB.
ADB had demonstrated its capacity to promote private-sector growth and it should continue to lead the way in this spirit, Peel said. "The bank should ensure development additionally rather than cherry picking the natural winners," the US representative in ADB said.
Saying that ADB cannot be a panacea to all countries and all sectors, he said, adding selective targeting ADB's resources to its comparative advantage would help the bank fulfil its core mission and maintain its relevance in the region.