NEW YORK - The President of the Asian Development Bank described Asia as well
positioned to weather the current world economic downturn and said the
region should "avoid a full-fledged financial crisis."

Speaking at Asia Society Headquarters in New York, Haruhiko Kuroda,
a former Special Advisor to Japanese Prime Minister Junichiro Koizumi,
discussed the impact of the global financial crisis on Asia and
recommended strategies that may help Asian countries weather these
challenging times.

Kuroda acknowledged the recent
significant slowdown in Asia's economic growth and predicted further
deterioration. However, he emphasized that Asia today is more resilient
to external shocks than it was a decade ago—and cited three reasons in
support of his argument.

First, he said, Asia
today has better "external positions" and large international reserves.
Second, the region’s financial institutions have little direct exposure
to US prime mortgages and structured credit products, the root causes
of the current turmoil. Third, more prudent economic policies
implemented in most Asian countries since the 1997 crisis should help
mitigate the impact of external shocks.

Kuroda concluded his remarks by encouraging
national and regional collaboration in Asia and stressing the
importance of multilateral banks to the region. As Asia’s economy
becomes more integrated, he predicted, trade, direct investment, and
social exchange will only increase, which in turn will be crucial for
ensuring Asia's continued growth during a difficult period.

Reported by Yoshie Ito, Asia Society

Listen to the complete program (1 hr., 6 min.) 

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