To: IQBAL LATIF who wrote (42559 ) 5/10/2002 3:52:14 AM From: IQBAL LATIF Read Replies (1) | Respond to of 50167 There is something bizarre, if not perverse, about rich people gathering in posh hotels to discuss the plight of the very poor, writes John Thornhill in FT today... But Shanghai's hoteliers have been happy to exploit the latest manifestation of conspicuous do-gooding as 3,300 delegates descend on China's commercial capital to attend the 35th annual meeting of the Asian Development Bank. When he took over as the bank's president in January 1999, Tadao Chino was assumed to be the latest in a long line of anonymous Japanese finance ministry officials who would run the bank with clinical efficiency but little passion. The bank would press ahead with its traditional function of carpeting Asia with concrete by building bridges, roads and dams. But Mr Chino has surprised many with his moral fervour in rededicating the institution to fight poverty and brought a new buzz to the bank. He has reoriented the entire institution to deliver on the United Nations' goal of halving extreme poverty - generally defined as living on $1 a day - by 2015 and in the process waded into the politically explosive territory of advising countries on how to improve their governance. There is certainly no shortage of poor people in Asia - or work for the ADB to do, at least in theory. But Shanghai's scintillating skyline is testament to the fact that self-reliant Asians have been startlingly good at lifting themselves out of poverty - with little need of outside help. Indeed, Asian countries have almost been competing with each other to break world records on that score. While not wishing to sound complacent, Brahm Prakash, director of the bank's poverty reduction division, says that in contrast with other regions of the world Asia is well on course to meet its poverty reduction goals. He concedes, however, that the "west end" of the bank's territory, namely central Asia, Afghanistan and Pakistan, is clearly experiencing greater problems. Mr Prakash believes that China, in particular, has done an "astonishing job" in tackling poverty. "It is a totally unprecedented and miraculous performance," he says. Not only have the Chinese brought immense relief to hundreds of millions of their own people, Mr Prakash says, they have also helped combat the despondency about development that has descended over other parts of the world, such as Africa. "China can now be seen as the saviour of the global economic system." Although China is one of the biggest recipients of ADB assistance, absorbing about $1bn of the ADB's $6bn of annual disbursements, the bank cannot claim much credit for the country's resurgence. And, in any case, it is perhaps in the nature of international aid agencies that their virtues remain invisible while their vices are all too often evident. The ADB has surely attracted a crowd of critics. Indeed, some of them came to Shanghai to deliver their complaints to Mr Chino in person. Representatives of communities affected by an ADB-sponsored water treatment project in Thailand and a road-building programme in Sri Lanka aired their robust opinions in a trust-building session between the bank and various non-governmental organisations. With exquisite politeness, Mr Chino bowed and thanked them for their criticisms, promising to read their petitions "very carefully". At least Mr Chino must have been grateful that the campaigners had refrained from emulating the recent antics of a group of left-wing activists in the Indian state of Kerala. They were so incensed by the "stringent" conditions attached to one of the bank's loans that they broke into the local ADB office and threatened to plant bombs. But the ADB has also come under fire from the other end of the spectrum as commercial bankers question whether the institution performs any functions that cannot be better done by the private sector. "The best way for the bank to raise the region's GDP would be for it to close down and give its money away," says one, somewhat jaundiced, banker. Stung by the criticism, ADB staff point to Afghanistan as an example of a country where the bank can play a vital role and where the private sector is still afraid to venture. Hedayat Amin-Arsala, vice chairman of Afghanistan's interim administration, certainly appeared appreciative of the $500m the ADB has pledged over the next 30 months to rebuilding his country. The injection of a total of $4.5bn in foreign aid, he says, will help Afghanistan regain its position as a trading bridge between east and west, central Asia and south Asia, lifting the economy of the entire region. Maybe the bank can help find a solution to Asia's "west end" problem after all. From FT today...