Facilitating better co-op between two continents
SHANGHAI: Asia's economic links with Africa have grown dramatically in recent years, and Asia's emergence as the world's fastest-growing market presents not only opportunities and inspiration for Africa but challenges as well, African Development Bank Group (AfDB) President Donald Kaberuka said yesterday.
In his speech at the opening ceremony of the bank's annual meetings, the president also said his bank is making progress on all fronts and the process of its repositioning is on course.
Premier Wen Jiabao makes a speech at the opening ceremony of the 2007 AfDB annual meetings in Shanghai yesterday. Wu Zhiyi |
"It is not fortuitous that we are meeting on this continent, in China, and at this juncture," said Kaberuka. "The annual meetings are an opportunity to exchange experiences and enhance that partnership, and examine how so many countries in Asia have been able to graduate so early from aid dependency, recover so quickly from the 1997 financial crisis and join the leaders in the global growth league."
Zhou Xiaochuan, governor of the People's Bank of China, shared Kaberuka's views. "I'm confident that the annual meetings will become a fresh starting point for all parties to intensify cooperation and promote development in both Asia and Africa," he said.
Lauding AfDB's achievement in the ongoing structure and projects reforms, Zhou stressed that AfDB is faced with the great duty of increasing its support to African countries in their efforts to reduce poverty and develop their economies, improve macro-level economic policies and strengthen the quest for sustainable development.
A joint fund was co-launched by China and AfDB to boost bilateral technological cooperation in 1996 and by the end of 2006, China had provided $1.2 million to the fund and sent 27 experts to participate in 14 projects in Africa.
China also donated a combined $314 million to the African Development Fund and pledged to donate $2.84 million between 2006 and 2007 to a fund dedicated to debt relief for African countries.
AfDB, where Asian economies such as China, India and the Republic of Korea play a key role, has an important place as a catalyst and is a preferred conduit for this partnership, Kaberuka said.
The first priority for the bank has always been to consolidate its financial strength in order to fulfil its fundamental mission of fighting poverty, he noted.
"I'm pleased to report that the financial position of the bank remains strong and the medium-term outlook is robust. The key financial ratios of the bank have strengthened even further and compare favorably with those of other multilateral development banks."
In 2006, the bank reported strong earnings of $372 million.
Partly because of the efforts of African Development Bank, Africa is better poised for economic prosperity and improved governance than it has been for decades, and the outlook of the continent is positive, with economic growth this year expected to surpass 6.5 percent, Kaberuka said.
"The last six years represent the longest period of sustained economic growth in Africa - even in countries that are not richly endowed with natural resources," he said.
Across the continent, economies are growing at 5.5 percent on average. The drivers of this up-trend include peace and stability, improved terms of trade, economic governance, favorable business climate and lower debt ratios.
But the AfDB president warned that despite the remarkable resurgence, there are serious causes for concern that require the bank's deeper resolve.
"Beyond the aggregate numbers, not all the countries or regions of Africa are making progress - millions of Africans
still live in nations with economies that are stagnating, contracting or barely keeping up with the population," Kaberuka said.
Meanwhile, even in economies making headway, vulnerability due to internal and external factors remains pretty high, including reversal in trade, natural catastrophes and governance.
"In such economies, the situation can only be described as encouraging but quite fragile," he said.
Kaberuka also said African people come from a low base and their population is growing, which means even at 5.5 percent economic growth, Africa still has a long way to go to make a dent on poverty, which remains extensive and pervasive.
(China Daily 05/17/2007 page25)
