ADB rejects charges its practices neglect poorest countries
The Asian Development Bank fended off criticism that it is neglecting the region's poorest countries by lending heavily to cash-rich emerging powerhouses like China and India.
By Agencies |
MADRID: The Asian Development Bank fended off criticism on Sunday that it is neglecting the region's poorest countries by lending heavily to cash-rich emerging powerhouses like China and India.
Supachai Panitchpakdi, chairman of a blue-ribbon panel that devised the bank's new long-term strategy, called those comments by The Wall Street Journal "disturbing" and "misinformed" and insisted the bank remains committed to those most in need.
He spoke as the bank met in Madrid for its annual meeting, which has been dominated by soaring food prices around the world and the danger this poses for Asia, home to two-thirds of the world's poor.
Yesterday, the bank announced emergency funding to help poor countries struggling with rice prices that have nearly tripled in four months. But it warned these could keep rising and stifle economic growth in the region.
In an editorial published May 1, the Journal noted that the Manila-based bank last year lent heavily to Vietnam ($1.5 billion), India ($1.4 billion) and China ($1.3 billion). These countries have colossal foreign currency reserves because of their booming economies.
Meanwhile, war-ravaged Afghanistan received $193 million in ADB grants last year, and East Timor, for instance, got USD 21 million.
"By lending to countries that also boast huge savings pools, those governments don't have to take responsibility for infrastructure projects they could easily afford," the editorial said.
Supachai Panitchpakdi, chairman of a blue-ribbon panel that devised the bank's new long-term strategy, called those comments by The Wall Street Journal "disturbing" and "misinformed" and insisted the bank remains committed to those most in need.
He spoke as the bank met in Madrid for its annual meeting, which has been dominated by soaring food prices around the world and the danger this poses for Asia, home to two-thirds of the world's poor.
Yesterday, the bank announced emergency funding to help poor countries struggling with rice prices that have nearly tripled in four months. But it warned these could keep rising and stifle economic growth in the region.
In an editorial published May 1, the Journal noted that the Manila-based bank last year lent heavily to Vietnam ($1.5 billion), India ($1.4 billion) and China ($1.3 billion). These countries have colossal foreign currency reserves because of their booming economies.
Meanwhile, war-ravaged Afghanistan received $193 million in ADB grants last year, and East Timor, for instance, got USD 21 million.
ADVERTISEMENT
"By lending to countries that also boast huge savings pools, those governments don't have to take responsibility for infrastructure projects they could easily afford," the editorial said.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
