ADB urges stronger ASEAN+3 cooperation
MANILA, Philippines — The Asian Development Bank (ADB) ha s urge d ASEAN+3 economies to strengthen regional cooperation and integration to take advantage of post-pandemic opportunities.
In an address during the ASEAN+3 Finance Ministers’ and Central Bank Governors’ Joint Meeting held yesterday on the sidelines of the bank’s 53rd annual meeting, ADB president Masatsugu Asakawa said globalization may take on a more regionalistic shape as the global economy recovers from the ravages of the pandemic and economies in the bloc are in the position to pave the way for recovery.
ASEAN+3 groups the economies of Brunei, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam, plus China, Japan and Korea.
“We need to continue strengthening regional cooperation and integration in order to deepen trade, supply chains, and investment as well as to build resilience,” Asakawa said.
“I believe that, in spite recent border closures and travel restrictions due to the pandemic, globalization will eventually come back; but it will take a different shape. Our region’s ability to seize the opportunities that emerge after the pandemic—while also managing the ongoing risks— will hinge on our collective efforts to strengthen regional cooperation and integration.”
As a k awa a l s o urg e d ASEAN+3 economies to continue addressing the worsening income inequality and absolute poverty with investments in education, health, and social protection with a particular focus on the vulnerable sections of the population.
Likewise, investing in quality infrastructure is crucial to recovery and getting back on track to achieving the Sustainable Development Goals.
Closing the digital divide and improving cybersecurity in the region will also improve access to health, education, and financial services.
“Digital technologies also contribute to and can help accelerate climate-smart development. ADB will identify and capture emerging opportunities while staying aware of the risks involved,” Asakawa said.
Enhancing the use of domestic resources once recovery has taken hold will also be critical moving forward, he said.
These include several changes in the tax systems such as having more progressive ones to redistribute income and narrow the income gap that has widened because of the pandemic.
Having mechanisms that capture profits generated by the digital economy will also contribute to the mobilization of domestic resources.
Also, having tax incentives for economic activities geared towards achieving the SDGs will aid in recovery, said Asakawa.
Supply chain disruptions caused by the pandemic have been prompting multinational companies to rationalize their operations and lessen dependence on China.
Even as lockdowns have been lifted in many countries and supply chain disruptions have been easing, companies have nonetheless become wary of vulnerabilities in a China-centric operation and risks associated with various geopolitical tensions such as the US-China trade tensions that continue to escalate particularly in the technology sector.
Countries in Southeast Asia are widely believed to benefit the most from this shift as companies look for alternative destinations that will enable them to keep production costs down and at the same time, serve as ready markets for goods.
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