‘Two-faces of Asia’: Forum Discusses Sustainable Development in Low-Income Asian Economies

October 14, 2011

While emerging Asian countries such as China and India are recognized as the driving forces of global economic recovery, many countries in the region, Bangladesh, Cambodia, Kyrgyz, Maldives, Mongolia, Sri Lanka, Timor-Leste, are juggling a difficult task: how to finance basic infrastructure amid the global economic uncertainty.

The conference discussed several issues including macroeconomic lessons from emerging market economies on infrastructure investment and its financing; regional lessons on important policy considerations for infrastructure development; and policy challenges facing LICs.

Participants agreed that LICs (low income countries) will need to ensure macroeconomic stability, while strengthening infrastructure investment and financial sector development, in order to enhance their growth potential.

Drawing on the macroeconomic lessons from Brazil, Chile, China and Korea, IMF Senior Economist Jiangyan Yu emphasized that a transparent and adequate regulatory framework is essential to mobilize the much needed long-term finance for investment.

Selective and efficient use of limited financial resources is also a key, participants expressed. It was recognized that, in order to do so, LICs’ governments should identify priority projects for investment.

Furthermore, it was also suggested that some LICs could make wiser use of their natural resources to attract investment for infrastructure development.

Source: http://www.jica.go.jp/english/news/field/2011/20111014_01.html

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