Chairperson, Governors, Mr President, ladies and gentlemen, on behalf of the Government of Australia, I would like to thank the Government of the Philippines for hosting the 45th Annual Meeting of the Asian Development Bank.
While the global economy and global financial markets have stabilised somewhat in recent months, the economic outlook remains uncertain. One thing that is certain is that Asia is leading the way in the global economy. Australia's future prosperity and that of our neighbours is closely connected, reflecting our strengthening economic ties. Today, China, Japan, Korea, India and ASEAN absorb three quarters of our exports and supply half of our imports. Australia's policies on Asia will continue to emphasise the importance of closer regional integration, supporting growth and stability.
As Asian economies strengthen, the ADB has a key role in promoting growth that is inclusive and sustainable.
As highlighted in the 2012 Asian Development Outlook, inequality is increasing – the gap between rich and poor is widening. This is where the ADB and its concessional lending arm, the Asian Development Fund are able to provide the knowledge and resources to promote growth and reduce poverty.
I commend President Kuroda and donors on navigating a difficult replenishment of the ADF in the current economic climate. Australia has pledged to significantly increase our ADF contribution in acknowledgement of the good results achieved through the ADF and the significant development needs of ADB's poorest members.
Australia's pledge is part of our approach to increasingly engage with multilateral institutions that are effective, efficient and achieve results. The ADB is an important development partner, performing strongly in achieving development results. This is demonstrated by the positive assessments by the international development community and Australia's Multilateral Assessment, which recognise ADB as a leading institution in achieving results in Asia and the Pacific.
Australia wants to see the ADB to go from strength to strength. Therefore, we encourage the Bank to progress further organisational and management reforms in four areas: (1) improving the measuring and reporting of results – in this spirit, we look forward to contributing to the ADB's comprehensive review of its Results Framework; (2) improving business processes to enhance ADB's operations in countries with weak capacity; (3) enhancing the implementation of ADB's safeguards policies, particularly after the ADB has taken positive steps to finalise the comprehensive review of its Accountability Mechanism; and (4) leveraging greater private sector resources.
Related to this last point, we acknowledge the complex challenge of mobilising funds to meet the development needs in the region. To continue promoting infrastructure and economic growth in the region the ADB will need not only sufficient funds but also greater utilisation of innovative financing to maximise its development impact. Therefore, in addition to increasing its private sector operations, the Bank should consider ways to further leverage its capital by partnering to a greater extent with the private sector. I note that the ADB is already doing work on public-private partnerships and recently approved such an innovative project with Credit Suisse for a climate investment fund.
This being said, when looking at new sources of finance, the ADB must remain conscious of any risks that may affect its financial integrity, which in turn determines its ability to raise capital and ultimately, its development impact.
As mentioned before, the ADB has a strong development impact in the region. In this regard, Australia encourages the Bank to maintain a strong focus on engagement with fragile states such as Afghanistan and Pacific islands. I also encourage the ADB and Governors to continue to increase re-engagement with Burma in close coordination with the World Bank and other development partners.
The ADB also contributes to the promotion of economic resilience through its work on various ASEAN+3 initiatives which encompass developing regional capital markets. I commend the 10 year success of the Asian Bond Market Initiative (ABMI) to which the ADB has provided valuable research and recommendations.
Finally, I want to highlight the importance of international cooperation in achieving sustainable global economic growth. Australia is a strong supporter of effective donor coordination between development partners such as the ADB, as well as participating in international forums such as the G20. It is in this spirit that we look forward to undertaking discussions on Australia's G20 priorities with the ADB in the lead up to our G20 hosting year in 2014.
Thank you.