Address by Masatsugu Asakawa, President, Asian Development Bank, at the opening session of the 57th Annual Meeting, 4 May 2024, Tbilisi, Georgia

Introduction

Welcome, friends, to our 57th Annual Meeting of the Asian Development Bank. It is a pleasure to be with you here in Tbilisi.  Your Excellency, Prime Minister Irakli Kobakhidze, thank you for joining us today.

For those of you visiting Georgia for the first time, I can assure you that it is a place full of wonderful sights and welcoming people. Just last year when I visited, I stayed in a lodge for a retreat. I remember the majestic, snow-covered Mount Kazbek. I also experienced the delightful Georgian custom of toasting one another at gatherings. I very much appreciate this tradition.

Let me recognize the Republic of Georgia for hosting us this week. To the Chair of the ADB Board of Governors, Lasha Khutsishvili, thank you for your leadership and excellent arrangements.

I. Building for the future through development

We come together at a time when the people of our region face challenges that demand our close attention and coordination. The impacts of climate change are unrelenting, and the risks from conflict and crisis can quickly undermine their livelihoods, and even their survival.

My friends, this is why development cannot stand still. It requires us to evolve to face the realities in front of us, and prepare for the challenges on the horizon. These meetings invite us to reflect deeply on this call to action. How can we work together to build a bridge to the future?

I would like to take a few moments to share some of my thoughts about how we can answer this call.

II. Building resilience to heat stress

Let me begin with the threat of climate change. This threat cannot be ignored, and our response cannot be delayed.

2023 was the hottest year on record. We see its effects on people and risks to future development. Crops and food systems are increasingly vulnerable. Melting glaciers are causing tremendous devastation downstream. And workers, from the fields to factories, especially women, are suffering tremendously from heat stress.

This is a grave threat along many dimensions — from food security; to infrastructure; to water resources; to health, employment, and equality. And so, the future depends on how we support people, sectors, and ecosystems affected by heat.

III. Harnessing AI for inclusive growth

Let me turn now to another priority for the future: the need to harness digital technology and ensure its careful and equitable use.

Artificial Intelligence offers tremendous potential to drive growth and help address development challenges in areas like healthcare, agriculture, and climate change. But, developing countries will miss out if they are not able to adopt this technology. There are also risks from AI, such as bias and lack of transparency.

ADB is working hard to strengthen the capacity of our developing member countries to deploy responsible AI solutions that follow an ethical framework and drive inclusive growth. We believe that bridging the digital divide, and opening opportunities from AI, are key to a more prosperous future.

IV. Driving green globalization

Next, let me reflect on globalization.

Our presence in this room demonstrates how deeply our world is connected. We should celebrate this. We should also develop these connections to build greener and more open economies.

It might be easy to look back at the pandemic, or at current geopolitical tensions and conflicts, and conclude that globalization is dead. I do not believe it.

It is true that global trade and supply chains are vulnerable to shocks. But the answer cannot be protectionism and segmentation. Free trade and free movement of capital have benefited our region for decades, and this must be the way forward.

So, let us explore how to deepen regional cooperation, in order to build resilience in supply chains, promote cross-border trade, bolster private sector investment, and strengthen financial and tax cooperation.

Let’s also find ways to decarbonize global supply chains. Trade-related activities account for up to 30% of the world’s carbon emissions. The uncomfortable truth is that with Asia’s strong growth, our contribution to greenhouse gas emissions is rising.

Now is the time to act to reduce global value chain-related emissions for a more sustainable future.

V. Supporting our members with the greatest need

Last, let me stress that our bridge to the future cannot leave behind those with the greatest need.

The poorest and most vulnerable populations, including those in small island developing states, face the heaviest burdens from climate change, economic shocks, and conflict.

Our financing must continue to include resources on concessional terms, including grants. The Asian Development Fund has been a crucial vehicle for this. And with a replenishment completed on Thursday, we will be able to deliver up to $5 billion to meet these needs.

I am thankful to our donors for this support. It makes a difference. I know this because I have met people across the region who face better prospects because of our investments in their future.

My friends, our bridge to the future must be one that is inclusive in this way. No one should be denied the benefits of development because of barriers to obtaining financing.

Closing

I would like to close by inviting you to take up these and many other important topics, which are crucial for the future of our region. I also hope that you can enjoy meeting one another and taking in the beauty of Tbilisi and the Georgian culture.

So, let this be my toast to you, to our hosts, and to all those we serve. I am so grateful for your friendship and for your presence today. Let us move forward together, as we build the bridge to a more prosperous, inclusive, resilient, and sustainable Asia and the Pacific.