Am Knowledge Seminar 2013 Web

7/28/2019 Am Knowledge Seminar 2013 Web

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HIGHLIGHTSof the 2013 Annual Meeting

Knowledge Sharing and Partnership Event

ADB Seminar Series

Sponsored Events

Civil Society Program

Host Country Events


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HIGHLIGHTSof the 2013 Annual Meeting

Knowledge Sharing and Partnership Events


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ContentsLetter from The Secretary ...................... ......................... ........................ ......................... ......................... . 3

ADB Seminar Series

Governors Seminar: Beyond Factory Asia: Fueling Growth in a Changing World .............................. 6Urban Asia: Financing Livable Cities ..................... ......................... ......................... ........................ .......... 7

Towards Developing and Implementing anIntegrated Disaster Risk Management in Asia and the Pacific ......................... ........................ .............. 8Jobs and Skills in the 21st Century............................ ........................ ......................... .......................... ..... 9Asia: The Road to Becoming a Knowledge Economy ...................... ......................... ........................ .... 10Global Partnership for Addressing Development Challenges in Asia and the Pacific ...................... 11Key Challenges and Policy Implications of Industrial Diversification in Asia ....................... ................ 12ADB Results Framework 2008-2012: How Did We Score? ....................... ......................... .................... 13Managing Inflation in an Era of Commodity Price Volatility ............................................. .................... 14Delivering Effective Public Services ...................... ......................... ......................... ........................ ........ 15Regional Cooperation and Integration in a Changing World ..................... ......................... ................ 16Progress of Myanmars Socio-Economic Reform ...................... ......................... ........................ ............ 17Connecting South Asia and Southeast Asia ...................... ........................ ......................... .................... 18Partnership with Africa and Latin America for Inclusive Growth: Role of Developing Asia ............... 19

Mobilizing Long-Term Financing for Infrastructure ...................... ........................ ......................... ........ 20

Sponsored Events

Apps for Asia: Redesigning Development Through Technology ........................ ......................... ........ 22Asia Financing Asia: Funding Infrastructure from Within ..................... ......................... ........................ 23Collaborative Innovation ........................ ......................... ........................ ......................... ........................ 24Funding Indias InfrastructureOpportunities and Challenges ...................... ......................... ............ 25Will the Eurozone and US Economies Derail Asia Pacifics Growth? ........................ ........................ .... 26Financing Universal Health Coverage ........................ ........................ ......................... ........................ ...... 2Sustainable Project Effectiveness and Cost Recovery for Public-Private-Partnership Projects .......... 28Financial Development in Asia ...................... ......................... ........................ ......................... ................ 29

Civil Society Program ....................... ......................... ........................ ......................... ........................ .... 32

Host Country Events

India Day: Next Wave of Inclusive Growth ........................ ........................ ......................... .................... 36Innovation for Inclusion ...................... ......................... ........................ ......................... ........................ .... 37Indian Financial Markets: Fueling the Growth of the Indian Economy ........................ ........................ 38


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The meetings theme of Development throughEmpowerment provided an opportunity for

stakeholders to discuss various approaches thatwould foster broad-based benefits and opportunities

for all. The knowledge sharing and partnershipevents program featured distinguished speakers andgenerated a high level of interest and enthusiasm

over a range of development and economic topics.


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Letter from The Secretary

On behal o the Asian Development Bank, I would like to extend our sincereappreciation or your participation in the 46th Annual Meeting o the Board oGovernors in Delhi, India.

Te meeting was an impressive gathering o nearly fve thousand participants,including fnance ministers, central bankers, policy makers, business leaders,renowned academics, civil society organizations, and media.

Te meetings theme o Development through Empowerment provided anopportunity or stakeholders to discuss various approaches that would oster broad-based benefts and opportunities or all. Te knowledge sharing and partnershipevents program, through seminars and other discussions, eatured distinguishedspeakers and generated a high level o interest and enthusiasm over a range odevelopment and economic topics. A snapshot o the key issues and opinionsemerging rom these events is contained in this publication.

A new and popular eature at this years meeting was the Apps For Asia technology

showcase, which gave participants an opportunity to experience and interact witha creative set o soware solutions with a development or economic ocus. We aimto continue eaturing innovative ideas that beneft the development community insubsequent Annual Meetings.

Comprehensive inormation on knowledge sharing and partnership activities,including seminar descriptions, videos, and more can be ound on ADBs website, atwww.adb.org/annual-meeting/2013/kspe

Once again, thank you or participating in the Annual Meeting and we look orwardto seeing you in Astana, Kazakhstan or the 2014 Annual Meeting.

Robert L.. DawsonTe SecretaryAsian Development Bank

Visit our website:

www.adb.org/annual-meeting/2013/kspe


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ADB SEMINARSERIES


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6 ADB Seminar Series

Asias phenomenal growth over the past ew decades has been driven by the riseo Factory Asia that has brought prosperity to the region and lied millions out opoverty. However, the global fnancial crisis and uncertain growth prospects in theUnited States and the Eurozone have dampened demand or Asian exports. At thesame time, rising wages threaten to erode the cost advantage that the region oncehad, managing supply chains has become more complex, and new technologies aretransorming manuacturing.

Te main issue discussed was how Asia can deal with the challenges to theFactory Asia model. Te process o demand shiing rom advanced countriesto Asia has already started. Tis implies manuacturers will have to reorientthemselves away rom serving markets in advanced economies towards targetingthe growing number o middle class consumers in the region. Panelists discussedhow investment in education and skills training can help the regions labor orceto join modern manuacturing industries. Tere are concerns that the regionseducation system has not equipped workers with the necessary skills or jobsin the manuacturing sector. Given the changing nature o manuacturing jobs,uture workers need to have the exibility and skills to adapt to new and moresophisticated tasks.

Te panelists also discussed the need to ensure that the benefts rom Factory Asiaow to all layers o society. It is important that small and medium enterprises begiven the opportunity to participate in Factory Asia and be an important part othe evolving manuacturing landscape in the uture. Te potential o new emergingtechnologies such as 3-D printing to transorm the manuacturing process wasalso the subject o discussion by the panel. Te issues o how to improve workingconditions and better enorce labor regulations in Asias actories were also posed tothe panel members. Rising wage costs and the impact o an aging population on themanuacturing sector were also discussed.

Download related

publication:

www.adb.org/publications/beyond-factory-asia-fuelling-growth-changing-world

Governors Seminar: Beyond Factory Asia:Fueling Growth in a Changing World

Panelists:

Hon. Armida Alisjahbana

Alternate Governor for Indonesiain ADB; Minister of National

Development Planning and Chair of

BAPPENAS, Indonesia

Hon. Taro AsoGovernor for Japan in ADB;

Deputy Prime Minister; Minister

of Finance; Minister of State for

Financial Services, Japan

Tarun KhannaJorge Paulo Lemann Professor,

Harvard Business School

Takehiko NakaoPresident, ADB

Raghuram RajanChief Economic Advisor, Ministry of

Finance, India

Hon. Anne Marjaana SipilinenGovernor for Finland in ADB;

Undersecretary of State, Ministry for

Foreign Affairs, Finland

Moderator:

Nik GowingInternational Journalist and

Broadcaster

Seminar Coordinators:

Thiam Hee NgRamesh Subramaniam


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ADB Seminar Series 7

Cities are accounting or a growing share o Asias output and population. In Asiaand the Pacifc the population is expected to grow rom 1.9 billion in 2010 to 3.3billion by 2050. Cities in many countries in the region generate around 80% ogross domestic product but consume 75% o the energy, and discharge 75% o thegreenhouse gases. Te growth o existing and new cities should imply improvementsin the quality o lie and better economic opportunities or their citizens. Asiassuccess in improved urban management and stronger ocus on developingcompetitive, inclusive, and green cities will hold the key or prosperity in Asia.

Te seminar discussed how decentralization has generally moved orward althoughnot always with adequate human and fscal means. Experts discussed the challengesor building long-term urban strategies and securing investments fnancingthe huge demand or sustainable urban inrastructure. Asia is expected to needabout $8 trillion o inrastructure investments within the next decade. Tereoregovernments will need to partner with the private sector. For the private sector,certainty o long-term cash ow and transparent regulative rameworks providingclear responsibilities and strong government commitment are crucial.

Te panelists deliberated on what is needed to strengthen local government capacityor urban management. Best practices and fnancing challenges rom India, lessons

rom Yokohama using innovative urban fnancing solutions, as well as examples onhow cities can utilize own-source revenues and unding rom higher governmentand private sector fnancing (e.g., municipal bonds, publicprivate partnerships)were discussed.

Te seminar highlighted the importance o direct partnerships with citygovernments and international development partners. Te panelists noted the needto mobilize resources or urban inrastructure rom all possible sources. Te privatesector has to be recognized as an important partner; its resources must be leveragedor development projects.

o increase investment in sustainable and resilient urban inrastructure, the seminarhighlighted the need or (i) long-term urban development strategies; (ii) integrated

socioeconomic, spatial, and investment planning; (iii) local government capacitybuilding; (iv) clear regulatory rameworks and institutional coordination; and(v) publicprivate collaboration including citizen involvement.

In addition to the discussion, the preliminary summary report RegionalCompetitiveness o Cities in Asia and Latin America, a joint study by ADB and CAFDevelopment Bank o Latin America was launched.

Urban Asia: Financing Livable Cities

Panelists:

Isher Judge AhluwaliaChairperson, Indian Council for

Research on International Economic

Relations

Hiroto ArakawaVice President, Japan International

Cooperation Agency

Frank KwokSenior Managing Director, Macquarie

Group; Co-Head of Macquarie

Infrastructure and Real Assets, Asia

Jacques MoinevilleAssociated Chief Executive

Officer, Agence Franaise deDveloppement


Enrique Garca RodrguezPresident and Chief Executive Officer,

CAF Development Bank of Latin

America

Nobuya SuzukiDeputy Mayor, City of Yokohama

Moderator:

Victor MalletFinancial Times

Seminar Coordinator:

Alexandra Vogl


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Tis session ocused on strategy and policy issues or disaster risk management inAsia and the Pacifc and was based on a background issues paper jointly preparedby ADB and the ADB Institute. In his opening remarks, Stephen Gro noted thatAsia and the Pacifc are particularly vulnerable to natural hazards: 8 o the 10 mostserious disasters since 1950 occurred in this region. He raised three main questionsor the seminar: (i) how can we deal with compound disasters? (ii) how can wefnance needs in disaster risk management? and (iii) how can we strengthen nationaland regional governance? Ian Davis introduced the highlights o the issues paper:(i) the drivers o disaster-related risk, not just the consequences o risk; (ii) the roleo governments, which are at the core o disaster risk management; and (iii) actionsneeded to be taken by local communities.

M. Shashidhar Reddy highlighted the growing risk o compound disasters withincreasing urbanization in India. He suggested that many lessons could be gainedrom the recent experience in Japan. As or governance, he acknowledged thatreduction o disaster risk should be incorporated in development planning at

various levels o government. He emphasized the need or capacity building with aparticular ocus on community-based sel-help eorts.

Kiyoshi Kodera underscored three main actors: increasing risk literacy, reviewingrisks constantly, and rebuilding structures with more resilience. He noted that theinvestment o $1 or disaster risk reduction might save $4$7 o disaster recoverycosts. Hiroshi Watanabe noted that dierent disasters require dierent approachesby the public and private sectors. For unexpected hazards, such as volcano

eruptions and large-scale earthquakes, the public sector has to play a signifcantrole. Meanwhile, or cyclical disasters, such as oods or drought, private fnancialinstruments such as agriculture insurance may be more eective since total recoverycosts can be mitigated by private insurance.

Masahiro Kawai concluded the session by underscoring the important roles ocentral and local governments in disaster risk management, and the need orcoordination across various relevant ministries and agencies. In addition, hestressed that disaster risk management should be included as one o the mostimportant national development strategies.

Towards Developing and Implementing anIntegrated Disaster Risk Management inAsia and the Pacific

Panelists:

Ian DavisProfessor, Oxford Brookes University

Stephen GroffVice-President Operations 2, ADB

Kiyoshi KoderaVice-President, Japan International

Cooperation Agency

M. Shashidhar ReddyVice-Chairman, National Disaster

Management Authority, India

Hiroshi WatanabeExecutive Managing Director, Japan

Bank for International Cooperation

Moderator:

Masahiro KawaiDean, ADB Institute


Atsushi Masuda

Download relatedpublication:

www.adbi.org/disaster.risk.management.asia.pacific.issues.paper


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Jobs and Skills in the 21st Century

A panel o experts rom academia, government, the International LaborOrganization, and the private sector analyzed recent trends in labor markets. Teydiscussed the policies and steps that countries need to take to generate productiveand well-paying jobs, and equip their workorce with the skills that the 21st-century

economy requires. Issues addressed included how technology is shaping the numberand type o jobs in various sectors, which types o economic policies hold the mostpromise or creating good jobs, and how systems or skills development and socialprotection need to evolve to meet the challenges o increasingly integrated andcompetitive markets.

Recent international experience indicates that robust economic growth is notsu cient to guarantee rapid growth in employment opportunities, especially in theormal sector. Tis was in part due to rapid technological change, which was oeneither labor saving or required skilled workers. Te panelists agreed that embracingnew technologies is important as they drive productivity growth, without whichit would not be possible to support the creation o good jobs. At the same time,

in many sectors, productivity and workers earnings were improved through theadoption o relatively standard technologies that complemented the existing skillmix.

Given that the private sector continues to generate the vast majority o jobs,panelists stressed the importance o economic policies and regulatory systems thatencourage entrepreneurs to enter new markets and product lines. Tese must becomplemented with skills delivery systems that ensure the employability o theworkorce and social protection systems that provide income stability or workers inan increasingly competitive and uncertain environment.

Panelists:

Hon. Armida AlisjahbanaAlternate Governor for Indonesia

in ADB; Minister of National

Development Planning and Chair

Person of BAPPENAS, Indonesia

Duncan CampbellDirector, Policy Planning in

Employment, International Labor

Organization

John HaleyChairman and CEO, Towers Watson

Santosh MehrotraDirector General, Institute of Applied

Manpower Research, Planning

Commission, Government of India

Vineet NayarVice Chairman and Joint Managing

Director, HCL Technologies Ltd.

John van ReenenDirector, Centre for Economic

Performance and Professor of

Economics, London School of

Economics

Xiaoyu Zhao

Vice-President Operations 1, ADB

Moderator:

Shereen BhanExecutive Editor, CNBC-TV18


Rana Hasan

CO-SPONSORED BY:


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Global Partnership for AddressingDevelopment Challenges in Asia andthe Pacific

Increased development fnancing rom nono cial sources and sharing oknowledge-based solutions among developing countries challenges the conventionalhypothesis o resource ows and knowledge transer rom the North to the South.While o cial development assistance remains vital, it is not enough to meet theevolving needs o economies in Asia and the Pacifc. Leveraging aid or other ormso development assistance, including knowledge and private sector involvement,is more important than ever. Tis has emerged as a key theme or the GlobalPartnership or Eective Development Cooperation, an inclusive orum launched atthe Fourth High Level Forum on Aid Eectiveness in Busan, 2011. Te partnershipis to ensure that development cooperation has the maximum possible impact ondevelopment results.

Ministers and policymakers rom ADBs developing members and providers odevelopment assistance discussed ways to catalyze private sector-led investmentand innovation, and promote knowledge-based solutions to achieve greaterdevelopment impact. Tey noted that the development landscape in Asia andthe Pacifc is undergoing dramatic changes, with a shiing paradigm rom aid todevelopment eectiveness. Partnerships with the private sector are seen as criticalor eectively addressing the tremendous development fnancing needs. Te paneldebate also ocused on the role that the post-Busan Global Partnership or EectiveDevelopment Cooperation can play in enhancing these eorts. Panelists highlightedthe importance o the global partnership as a unique and inclusive platorm orpromoting development. Tey noted that it could orm a key instrument oraddressing the development gap in the region and or implementing the post-2015

development agenda.

Panelists:

Hon. Armida S. AlisjahbanaAlternate Governor for Indonesia


Development Planning and Chair of

BAPPENAS, Indonesia; Co-Chair of

the Global Partnership for Effective

Global Cooperation

Stephen P. GroffVice-President Operations 2, ADB

Hon. Emilia PiresGovernor for Timor-Leste in ADB;

Minister of Finance, Timor-Leste

Hon. Bernie Ripoll MPAlternate Governor for Australia in

ADB; Parliamentary Secretary to the

Treasurer, Australia

Moderator:Veronica PedrosaFreelance Journalist, formerly with

CNN and Al Jazeera


Manju Senapaty

CO-SPONSORED BY THE

GOVERNMENT OF INDONESIA


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ADB Results Framework 2008-2012:How Did We Score?

In 2008, ADB took the pioneering step o adopting the frst corporate resultsramework or a multilateral development bank. Te ramework measures ADBsprogress toward the goals o its long-term strategic ramework, Strategy 2020. Since

then, ADB has been measuring its perormance each year against the rameworkstargets to identiy weak areas and devise corrective measures. ADB publishes theresults o this exercise in the annual Development Efectiveness Review Report.

Te seminar reviewed not only annual perormance in achieving the 2012 targetso the results ramework, but also how the review and ramework have evolved asa management tool. A major ocus was how the reorm initiatives introduced since2008 have inuenced ADB perormance. Te seminar introduced the new resultsramework, which was approved in 2013 ollowing comprehensive review andconsultation. Tis ramework will be used to measure ADB perormance during20132016.

Te panel o senior o cials rom ADBs member countries applauded ADB or itstrailblazing role in results management over the last 6 years and or its commitmentto accurate, transparent reporting. Tey confrmed that the process had drivenchange within ADB, created a stronger results culture, and is making a dierence toperormance. Tey urged ADB to continue with the more di cult actions that takea longer time to bear results.

Presenter:

Noriko OgawaHead, Results Management Unit

and Advisor, Strategy and Policy

Department, ADB

Panelists:

Hon. Rick N. HouenipwelaGovernor for the Solomon Islands

in ADB; Minister for Finance and

Treasury, Ministry of Finance and

Treasury, Solomon Islands

Ashok Kumar LahiriExecutive Director, ADB

Vaughn LantzDirector, International Financial

Institutions Division, Multilateral and

Global Programs Branch, Canadian

International Development Agency

(CIDA)

Kre StormarkAlternate Governor for Norway

in ADB; Deputy Director General,

Department for UN, Peace &Humanitarian Affairs, Ministry of

Foreign Affairs, Norway

Moderator:

Rajat NagManaging Director General, ADB


Noriko Ogawa


www.adb.org/documents/development-effectiveness-review-2012-report


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Managing Inflation in an Era of CommodityPrice Volatility

Ination in Asia and the Pacifc is now relatively low, but the environment in which

monetary policy operates is becoming more complex. Sharp commodity pricemovements, or one, challenge central bankers eorts to achieve price stabilityas these relative price movements get built into inationary expectations. Foodprice movements have been a particular problem or India, or example. Monetaryauthorities will also ace spillovers rom advanced economies low policy interestrates and quantitative easing. As investors intensiy their search or yield, developingAsia will likely attract a large portion o this excess liquidity.

A panel o our policy experts joined President Nakao and Naoyuki Shinoharato explore the issue o managing ination in the current uncertain environment.Panelists weighed the options or ination targets, given the large share o oodin Asias consumption bundles. Tey discussed the di culty o managing capitalows and their impacts on asset prices, in light o ongoing monetary easing in the

United States, the euro area, and Japan. While noting potential benefts rom closercoordination o monetary policy, the panelists emphasized the di culty in reachinga consensus on this issue given the dierent needs o various economies.

At some point, the unconventional monetary policies pursued by the advancedeconomies will come to an end. Developing Asias policymakers need to prepareor this eventuality. Te panelists noted that the recent global crisis and monetarypolicy in its aermath are largely uncharted territory. Yet, as President Nakao noted,all crisesrom the end o the gold standard to the 1997 Asian fnancial crisishave their unique eatures, which inhibit drawing parallels rom past events. Fordeveloping Asia, a continued emphasis on monetary and fscal prudence will put theregion in the best position to ace any eventuality.

Panelists:

Subir GokarnDirector of Research, Brookings India;

Senior Fellow, Brookings Institution


Klaus ReglingManaging Director, European

Stability Mechanism

Changyong RheeChief Economist, ADB

Naoyuki Shinohara

Deputy Managing Director,International Monetary Fund

Anoop SinghDirector of the Asia and Pacific

Department, International Monetary

Fund

Moderator:


Broadcaster

Seminar Coordinator:Joseph Ernest Zveglich

CO-SPONSORED BY:


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Delivering Effective Public Services

Te seminar ocused on the need or greater public sector investment in humancapacity development to advance inclusive growth. Particular attention was given tothe education, health and sanitation, and water sectors. By building human capacitythrough investment in these sectors, countries in developing Asia can better achievethe ultimate objective o development, identifed as empowerment and reedom touse ones abilities.

Te seminar highlighted the launch o the ADB policy report, Empowerment and

Public Service Delivery in Developing Asia and the Pacic. Te report highlightsmechanisms that citizens can use to demand better state-provided services andaccountability, such as reedom o inormation laws, participatory monitoring andevaluation, and community-driven development. Te report notes that state bodiesplay a highly inuential role in encouraging or inhibiting progress toward citizenempowerment.

Te speakers identifed inormation and communication technologies andgovernment decentralization as means to promote improved public service delivery.Examples abound within Asia and elsewhere on how to make service providersmore accountable to the population and to improve the way that essential servicesare delivered. However, approaches that work in one place may not work in another.More dedicated research is required to increase understanding and inorm policy.

Panelists:

Hon. Armida AlisjahbanaAlternate Governor for Indonesia


Development Planning and Chair ofBAPPENAS, Indonesia

Anil DeolalikarProfessor, Department of Economics,

University of California

Pierre JacquetPresident, Global Development

Network

Amartya SenThomas W. Lamont University

Professor and Professor of Economics

and Philosophy, Harvard University

Moderator:

Veronica PedrosaFreelance Journalist, formerly with

CNN and Al Jazeera


Bart W. des


www.adb.org/publications/empowerment-and-public-service-delivery-developing-asia-and-pacific


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Regional cooperation and integration (RCI) has played an important role in Asiasgrowth and development, and will have to play a role in managing the consequenceso this ascendancy going orward. o sustain regionwide economic growth, greaterregional integration allowing or reer ow o trade and investment across the region

is desirable. A prerequisite or this is greater and sustained regional cooperation.Continuous dialogue and cooperation, i not coordination, in macroeconomicpolicy should also be considered. But increasing regional integration brings with itboth benefts and costs.

Te discussion ocused on the trade and fnance dimensions o RCI, looking atimpacts and challenges, as well as associated environmental consequences. Giventhe impasse at the World rade Organization, the prolieration o ree tradeagreements in the region was not surprising. Panelists shared concerns over theimpacts o the Asian noodle bowl o oen overlapping agreements. Although asuccessul conclusion to the Doha Round would be optimal, the need to harmonizeree trade agreements through consolidation, with a view toward eventual

multilateralization, was broadly supported. Panelists noted limited progress infnancial integration in the region, and highlighted various obstacles that neededto be overcome. Te regional fnancial saety net needs to be expanded to deal withliquidity needs in times o crises. Te challenge o ensuring that convergence occurswithout signifcant increases in inequality within countries remains a daunting one,but panelists elt that RCI could play an important mitigating role. Finally, unlessuture growth is more environmentally sensitive, its sustainability and consequentbenefts, especially to the poor, will be at risk.

Regional Cooperation and Integration in aChanging World

Panelists:

Isher Judge AhluwaliaChair of Indian Council for Research

on International Economic Relations;

Chair of High Powered Export

Committee on Urban Infrastructure

Services

Arnaud BuissFrench Directorate General of the

Treasury, Deputy Assistant Secretary

Multilateral Financial Affairs and

Development Division, France

Diwa GuinigundoDeputy Governor, Bangko Sentral ng

Pilipinas


Naoko IshiiCEO and Chairperson, Global

Environment Facility

Andrew Sheng

President, Fung Global Institute

Anthony VenablesProfessor of Economics, University of

Oxford

Moderator:


Broadcaster

Seminar Coordinators:

Jayant Menon

Ramesh Subramaniam


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Progress of Myanmars Socio-EconomicReform

Historic changes have occurred in Myanmar since the general elections in 2010.Te new government, inaugurated in March 2011, has taken bold steps to solidiynational reconciliation and build good governance, and embarked on wide-rangingeconomic and social reorms with a ocus on people-centered development andthe acceleration o Myanmars integration into the international community. Itsour-stage reorm agenda encompasses political, economic, public administration,and private sector development reorms. Te Central Bank o Myanmar highlightedprogress with the governments reorm agenda and prospects or Myanmarsdevelopment, covering policies emphasizing agro-based industrial developmentand sustainable economic growth, and promoting investments or people-centereddevelopment and poverty reduction, while ensuring macroeconomic stability.

Commentators acknowledged the challenges o undertaking such a broad rangeo reorms simultaneously aer decades o relative isolation, and the remarkableprogress made especially in the past year. Te seminar discussed Myanmars vastdevelopment potential due to its natural resources, land area, and large population,as well as its strategic geographic location, which enables Myanmar to beneft rompromoting regional economic integration between South Asia, Southeast Asia,and the Peoples Republic o China. At the same time, daunting challenges must beaddressed, including sustaining peace through equitable sharing o the benefts odevelopment especially among the rural population.

Myanmar has great demand or capacity building technical assistance andinvestment unding, especially or energy and transport inrastructure, to catch up

with its regional neighbors. Furthermore, managing expectations will be critical,as many o the reorms are undamental and systemic, requiring time and capacitybuilding to ensure sustainability. Success will also require the engagement andcommitment o all national stakeholders including civil society and the privatesector. Te private sector will be the engine o economic growth and primary sourceo investment. Te government must continue to take the lead in coordinating thesignifcant assistance being provided by its development partners.

Panelists:

H.E. U Win SheinGovernor for Myanmar in ADB; Union

Minister of the Ministry of Finance

and Revenue, Myanmar

H.E. Dr. Kan ZawUnion Minister of the Ministry of

National Planning and Economic

Development, Myanmar

H.E. U Than NyeinGovernor, Central Bank of Myanmar

Stephen P. GroffVice-President, ADB

Anoop SinghDirector Asia & Pacific, International

Monetary Fund

Moderator:

Victor MalletSouth Asia Bureau Chief, Financial

Times


Putu Kamayana


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Connecting South Asia and Southeast Asia

Te seminar was to identiy issues and impediments to closer integration betweenSouth Asia and Southeast Asia, and policies to ameliorate them. Te panel discussedthe prospects or and potential benefts and costs o greater connectivity betweenthe subregions, ocusing on investment in transport inrastructure, energy trading,investment fnancing and fnancial development, trade acilitation, and support ornational and regional policies. Better connectivity, through hard inrastructure andassociated soware, lies at the heart o unlocking the ull benefts o closer economicties. Moreover, the political and economic reorm process in Myanmar makes land

and land-sea connectivity between South and Southeast Asia possible, somethingthat was not easible a ew years ago.

In his opening remarks, Stephen Gro noted that better connectivity between thetwo subregions can bring numerous benefts, including promoting the expansion omanuacturing production networks in South Asia. It also provides a basis or moreinclusive growth, reduction o income gaps, and increased security in the region.

Masahiro Kawai presented a summary o Connecting South Asia and SoutheastAsia: Interim Report. Key fndings include identifcation o inrastructure projectsthat could ameliorate current missing links in road and rail inrastructure inBangladesh, India, and Myanmar; potential new landsea corridors between the two

subregions; the potential or energy trading; areas o emphasis or improvementsin trade acilitation; priorities or expanding fnancing options or inrastructure;urther development and expansion o ree trade agreements to reduce tradebarriers; and development o regional institutions to support such projects.

Te seminars main points include (i) while connectivity in trade and fnancebetween the two subregions has increased, there is potential or much more;(ii) the benefts could be substantial; (iii) since benefts and costs would haveasymmetrical distributions across countries, appropriate compensation mechanismsneed to be developed; and (iv) the Asian Development Bank and the ADB Institutestand ready to support eorts in this area, both in conducting research andproviding fnancial support or bankable inrastructure projects.

Panelists:

Stephen GroffVice-President, Operations 2, ADB


Nisha TanejaProfessor, ICRIER (Indian Council for

Research on International Economic

Relations)

Hiroshi WatanabeCEO, Executive Managing Director,

Japan Bank for International

Cooperation

H.E. Dr. Kan ZawMinister of National Planning and

Economic Development, Myanmar

Moderator:



Peter Morgan


www.adbi.org/files/2013.05.05.book.connecting.south.asia.southeast.asia.interim.report.pdf


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Te seminar ocused on mobilizing long-term fnancing or inrastructuredevelopment, a topic o strong interest throughout Asia. Te Asian DevelopmentBank (ADB) estimates that the region will require about $8 trillion this decade to

support inrastructure construction.

Lakshmi Venkatachalam opened the session, detailing the scale o the requirementso Asias inrastructure sector, and explaining ADBs own involvement, including therecently established inrastructure bond guarantee acility in India.

Montek Singh Ahluwalia discussed the challenges India aces in meeting itsenormous inrastructure needs. He emphasized the renewed eorts o the Indiangovernment, including recent policy announcements, and underlined the criticalrole o the private sector.

A panel discussion, including Kittiratt Na-Ranong and representatives rom private

equity, debt providers, and credit-rating agencies, addressed various key topics andfelded questions rom the audience.

Te themes discussed included the roles o rating agencies and governments,the continuing need or multilateral development banks to fnance unding gapsand provide credit enhancement, the large pools o long-term savings availableto und inrastructure construction, and the growing interest in developing Asia.Te discussion also revealed that despite commonalities across Asia, variationsacross countries might require and yield dierent country-specifc solutions towardbridging the inrastructure defcit.

Te panel noted the need to address currency risk and to mobilize su cient creditintermediation to ensure that money supply and inrastructure unding needs can

be met. It also looked at the need to develop inrastructure bond markets or localand international investors.

Mobilizing Long-Term Financingfor Infrastructure

Keynote Speaker:

Montek Singh AhluwaliaDeputy Chairman, Planning

Commission, India

Panelists:

Anjan GhoshChief Rating Officer and Group-Head

of Corporate Sector Ratings, ICRA

Ltd.

Markus HottenrottChief Investment Officer, Morgan

Stanley Infrastructure Partners

Hon. Kittiratt Na-RanongGovernor for Thailand in ADB;

Deputy Prime Minister and Minister

of Finance, Thailand

John RobertsExecutive Chairman, Macquarie

Funds Group

Atsi ShethLead Sovereign Analyst for India,

Moodys Investors Service

Takashi TsukamotoChairman, Mizuho Financial Group

Closing Remarks and Moderator:

Thomas J. Keller

Managing Director, GeographicManagement and Sovereign Ratings,

Moodys Investor Service


Michael Peter Barrow

CO-SPONSORED BY:


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SPONSOREDEVENTS


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22 Sponsored Events

Apps for Asia: Redesigning DevelopmentThrough Technology

Microso and the ADB introduced the Apps For Asia initiative at this yearsAnnual Meeting. Directly aligned with the overall Annual Meeting theme oDevelopment through Empowerment, the Apps For Asia program aims to bring

developers and the application needs o Asia together. Te program provides accessto the innovative power o hundreds o soware developers to create sustainablesolutions or the economic, commercial, and social benefts o governments, civilsociety, and businesses in the region. Te Apps For Asia program included a serieso national developer events in Australia, India, the Republic o Korea, Malaysia,and the Philippines. O the 100 innovative apps submitted, the top three rom eachcountry were exhibited. Among the winning entries, solutions include conceptsor mobile applications that track water usage, consolidation or the most sought-aer emergency services, an app that monitors medication use among tuberculosispatients, and e cient assistance or public transit users when planning travel.

Apps For Asia is an example o the type o programs implemented under the

Asian Development BankMicroso partnership to apply inormation andcommunication technology in support o regional development mandates. Programslike this oster innovation to help improve the lives o people across the region.

Special thanks and congratulations to the developers o the winning applications,which were exhibited in Delhi including Accelerate Desk, Blood Donors Network,Centium Soware, Codetoki, DreamX, Filament, Gnowledge, Grand Domain,Inosys Limited, Mapi, PathFinder, OS, rinary Logic, Winjit echnologies, andX Meaning. ogether, we are demonstrating how technology can be a undamentaldriver in empowering underserved communities and taking positive steps toward abetter tomorrow.

Panelists:

Orlando AyalaChairman, Emerging Markets,

Microsoft Corporation

Robert L.T. DawsonThe Secretary, ADB

Bhaskar PraminikChairman, Microsoft India

Moderator:

Frank McCoskerGeneral Manager Global Services

Accounts, Microsoft Corporation

SPONSORED BY:

Website:

www.AppsForAsia.com


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Sponsored Events 23

Asia Financing Asia:Funding Infrastructure from Within

Asian fnancial systems have in recent years become less reliant on traditionalsources o fnancing. Asian savings now eature more prominently as a source ocapital in the region, with these ows increasingly being disintermediated throughthe regions fnancial centers, rather than elsewhere. Despite these improvements,signifcant areas do not receive adequate unding, most notably inrastructure inIndia and most economies o the Association o Southeast Asian Nations (ASEAN).

Tis inrastructure gap is a major obstacle hindering the attainment o GDP growthrates seen in Northeast Asia. With high investment needs, the need or oreignunding, perhaps in signifcant proportions, seems inevitable to fll the gap. Meeting

this challenge is a undamental precondition to acilitating the regions ongoingspecialization and continued move up the value chain.

Te seminar explored the extent to which this gap can be closed by intraregionalows, that is, by Asia fnancing Asia. It highlighted multidimensional challenges:

i. Will Northeast Asia have the necessary savings to help und inrastructuredevelopment in India and ASEAN given its own unding needs related torapidly aging populations and slower growth? How can Northeast Asiaovercome the home bias?

ii. Given the changes to the international fnancial architecture, what sortso structures and instruments are necessary to acilitate the cross-regionalunding o India and ASEANs inrastructure development as banks exit

this market?iii. What sorts o comort can be provided to potential investors? Are these

politically easible? What is the role o the public sector in this process?

Te quality o the panelists and the insights they oered were extremely wellreceived as evidenced by the standing room only crowd that comprised a mix ofnancial institutions, diplomats and government o cials rom the region, mediaand academics.

For a copy o the presentation, please email [email protected]

Panelists:

Subir GokarnDirector of Research, Brookings India

Justin McNabExecutive Director, Global Utilities

and Infrastructure, ANZ

Mahendra SiregarDeputy Minister for Finance,

Indonesia

Hiroshi WatanabeExecutive Managing Director, Japan

Bank for International Cooperation

Host:Mark RobinsonCEO Europe, Middle East, America &

India, ANZ

Moderator:

Richard YetsengaHead of Global Markets Research,

ANZ

SPONSORED BY:


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24 Sponsored Events

Panelists:

Anurag Agrawal MBBS PhD FCCPPrincipal Scientist from Council for

Scientific and Industrial Research (CSIR)

S. ChanderDirector General, Regional and

Sustainable Development Department,

ADB

Paul EllingstadPartnership and Programs

Development Director, Hewlett-

Packard

Wilfried GrommenChief Technology Officer for European

Union Institutions and United Nations,

Hewlett-Packard

Gabi ZedlmayerVice-President, Sustainability and

Social Innovation, Hewlett-Packard

Host:

Elizabeth HernandezAsia Pacific Japan Director of

Government Relations, Hewlett-

Packard

SPONSORED BY:

Collaborative Innovation

HP collaborated with ADB and Council or Scientifc and Industrial Research India(CSIR India) to present a panel discussion on Collaborative Innovation. Hostedby Elizabeth Hernandez, the panel sought to demonstrate how private and publiccompanies can drive innovation and productivity.

Paul Ellingstad opened the session by sharing a quote by ounder Dave Packard,A group o people get together and exist as an institution that we call a company,to do something worthwhileto make a contribution to society. HP believes thatbettering society is not a job to be le to a ew but a responsibility to be shared byall. As such, HP collaborates with governments, international fnancial institutionsand non-government organizations to solve challenges related to education, globalhealth, community, and the environment.

Collaborative Innovation evolved out o two distinct challenges that demandedimmediate attention. India needed a unctional and aordable health inrastructurethat could be rapidly deployed, and a data management system to inorm healthpolicy. Although CSIR India is well-unded and well-connected with government

organizations in public health, they lacked an organized implementation team.HP stepped in with an implementation team supported by corporate socialresponsibility unding, co-investments and an open-source environment.

Wilried Grommen shared examples o Collaborative Innovation whichincluded, i) education projects such as the HP Lie program (aimed at assistingsmall to medium scale entrepreneurs), Lab-in-a-Box and the Educational Cloud;ii) environmental projects such as Closed Loop ink cartridges recycling, Ecopod,Moonshot servers and Green Data Centers; and iii) health projects such as EarlyInant Diagnosis, Patient Saety Dashboards and Innnovative Solutions.

Anurag Agrawal spoke about the eHealth Center (eHC), a mobile health centerwith cloud capabilities where patients can receive proper diagnosis and treatment

in remote areas and have real-time discussions online with medical experts.Te project was piloted in Chausala, a village o 10,000 people in the state oMaharashthra.

S. Chander closed the discussion, stating that inormation and communicationstechnology has proound impact on both micro and macro economic levels.


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Sponsored Events 25

Funding Indias InfrastructureOpportunities and Challenges

Asias third largest economy is acing its slowest annual economic growth in adecade. India needs to ocus on inrastructure growth and improve its ability tomobilize unding to meet its targeted $1 trillion investment in inrastructure by2017.

A group o highly experienced panelists including top policymakers, capital marketfnanciers, corporates, oreign and local investors, legal proessionals, and sovereignrating analysts came together to discuss how India can move to the second stage odevelopment while addressing its challenges in fnancing inrastructure growth.

Te discussion indicated that India remains a preerred destination or investors,despite setbacks suered by the country in the recent past. Since 1991 when Indiafrst opened to privatization and oreign investors, the country has achievedtremendous growth while gaining enormously rom the international exposure.

With global interest rates remaining low and the economic outlook uncertain,oreign investors continue to look or long-term assets, yielding good returns.

Panelists concurred that India has the capacity to produce these assets to meetinvestors expectations, but at the same time it should aim to oer consistent long-term policies and enhance its accountability standards.

Tey emphasized that private participation should not take away the responsibilityo the government at any stage o project development and that serious eortsshould be made to bridge the looming inrastructure defcit.

While India has improved its e ciency or adjudication, it is taking steps tointroduce innovative instruments or takeout fnancing. Inrastructure debt unds,credit enhancements with the help o multilateral agencies, equity takeouts, andwider investor participation rom insurance companies in pension unds are someo the fnancing options being oered to ease the burden o unding inrastructure

growth on the Indian banking system.

Panelists:

Arundhati BhattacharyaManaging Director and Chief

Executive Officer, SBI Capital Markets

Sharmila ChavalyJoint Secretary, Infrastructure,

Department of Economic Affairs,

India

Amit KapurPartner, J. Sagar Associates

Suneet MaheshwariManaging Director and Chief

Executive Officer, L&T InfrastructureFinance Company

Sanjay NayarManaging Director, KKR India

Atsi ShethVice-President and Senior Analyst,

Moodys Sovereign Risk Group

Pradeep SinghVice-Chairman and Chief Executive

Officer, IDFC Projects

Lakshmi VenkatachalamVice-President, Private Sector and

Co-financing Operations, ADB

Moderator:

Manju DalalIndia Editor, International Financing

Review Asia

SPONSORED BY:


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Sponsored Events 27

Financing Universal Health Coverage

Te panel discussed and debated issues related to providing health services or all,protection and saeguards against adverse fnancial consequences, tools or healthfnancing, approaches to reach out to the poor and underserved, and partnershipswith the private and nongovernment organizations.

Naresh rehan made a strong case or government, the private sector,nongovernment organizations, and civil society to come together and evolvemechanisms to address the challenges o delivering quality health services to allcitizens o the country, irrespective o their ability to pay. He highlighted the needor the convergence o schemes and programs currently being operated by dierentministries, departments, and agencies, under one institutional setup or eectiveimplementation.

Somil Nagpal spoke about the complementary nature o the National Rural HealthMission and national- and state-sponsored health insurance schemes, albeit byaccident rather than by design. While the mission has led to a signifcant scaling upo primary service delivery, the national and state health insurance schemes haveocused on making secondary and tertiary care accessible.

Hasit Joshipura noted that preventive health care is the cheapest orm ointervention or achieving universal health care. argeted interventions likeimmunization can go a long way to achieving better health care outcomes.

Nata Menabde reinorced the point that universal health care coverage should notbe regarded as the end objective, but only as a means to ensuring better health

outcomes or all. She also highlighted the act that dierent countries shouldadopt dierent models o universal health care, based on their specifc needs andcircumstances.

Participation by the audience was robust. Te panel members agreed that without aconstructive partnership-based approach between government, the private sector,nongovernment organizations, and civil society, universal health coverage willcontinue to elude nations across the developing world.

Panelists:

Hasit JoshipuraVice President, South Asia

and Managing DirectorIndia,

GlaxoSmithKline Pharmaceuticals Ltd.

Nata MenabdeHead of Mission and World Health

Organization Representative to India

Somil NagpalSenior Health Specialist, South Asia

Region, The World Bank

Naresh Trehan

Chairman and Managing Director,MedantaThe Medicity

Moderator:

David LevyGlobal Health Industries Leader, PwC

SPONSORED BY:


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28 Sponsored Events

Publicprivate partnership (PPP), as means or fnancing public inrastructure,was a strong theme during the 2013 Annual Meeting o ADB. Statements madeby Governors and delegates reected growing consensus or use o PPP as tool orurbanization. Amidst the robust debate, delegates pointed out the challenges inrealizing the potential o PPP. Tese include di culties in structuring a bankableproject, stakeholder acceptance, unstable revenue streams, and corruption.

Panelists at this seminar spoke o a unique interpretation o PPPfnancing publicprojects without sovereign debt. Within the domain o trade acilitation projects,speakers shared the SGS model o applying a network charge on project user base togenerate sustainable revenue streams. With the involvement o independent thirdparties to cultivate an environment o transparency and accountability, stakeholders

could come to a consensus with an interace thats acceptable to all parties in servicedelivery and, in certain cases asset management, stakeholders could come to aconsensus with an interace that is acceptable to all parties.

Case studies rom Madagascar and Mozambique illustrate signifcant mitigation opolitical, fnancial, and operating risks. Government speakers rom both countriesspoke o an easier road towards consensus building between diverse stakeholders,surviving even conditions o political instability rom 2009 to the present day.

Potential pitalls o PPP projects encountered, but avoided, were shared by thepanel, included the ollowing:

i. Co-opt trade stakeholders into project upstream to improve chances o

broad consensus.ii. Ensure equal treatment or all users o inrastructure, and assist those wholack capacity.

iii. Mitigate corruption with air and transparent fnancial incentives oradopters, ocusing on long-term reward rather than short-term gain.

iv. Be pragmatic in choosing the most eective solution, which will notnecessarily be the most sophisticated.

v. Look at technology as an enabler o governance, not a solution togovernance.

Ms. Abhilasha Mahapatra, a PPP expert rom the Indian Ministry o Finance, spokeo potential and various challenges o developing successul PPP projects in India.

Sustainable Project Effectiveness and CostRecovery for Public-Private-PartnershipProjects

Panelists:

Eric Rakoto AndriantsilavoChief Executive Officer, Madagascar

Economic Development Board

Nigel GregoryDirector General, SGS-MCNet

Mozambique

Philippe IslerVice-President (Trade Efficiency),

Government & Institutions Services,

SGS S.A.

Abhilasha MahapatraDeputy Secretary (Public-Private-

Partnerships), Department of

Economic Affairs, Ministry of

Finance, India

Vola-RazafindramiandraRamiandrasoaDirector-General, Madagascar

Customs

Moderator:

Paul HouseManaging Director, SGS India Private

Limited

SPONSORED BY:


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Sponsored Events 29

Financial Development in Asia

Many Asian emerging economies are searching or capital and investment, whileconcurrently trying to juggle inows with stability. o manage large investmentows, local fnancial systems have to be su ciently developed to absorb anyresulting volatility. In addition, the region is conronting growing inequality that

is driven, in part, by technological changes, access to education, and globalizationmore generally. Achieving fnancial inclusion will play an important role inmitigating income disparities.

Tis session was inspired by the World Economic Forums Financial DevelopmentReport, which measures and analyzes actors enabling the development o fnancialsystems in more than 60 economies around the world, and addressed threequestions:

i. Are the correct institutions in place to eectively manage the transitioncurrently taking shape in Asia and the Pacifc?

ii. o what extent can fnancial inclusion provide new sources o well-beingand growth?

iii. What are the key emerging risks across the region that need to be

monitored?

Te panel discussion identifed that, despite a rise in capital ows, the emergingeconomies in the region still suer rom weak enabling environments (i.e.,appropriate legal rameworks and supporting institutions), which invariably hurtinvestor confdence and prevent the development o much-needed nonbankfnancing, such as local currency bond markets.

Financial inclusion, it was argued, is important or reducing inequality in the regionand, according to one panelist, the poor are eminently bankable. Still, considerablebarriers remain, including the act that unnecessary complexities prevent peoplerom simply opening a bank account.

One concern about emerging threats to stability is that countries in the region are,to varying degrees, importing loose monetary policies employed by the centralbanks o countries such as the United States, which, in turn, could contribute to thedevelopment o asset price bubbles.

Panelists:

Sunil KanoriaVice Chairman of SREI Infrastructure

Finance Ltd and Vice President of

ASSOCHAM


Paul GruenwaldManaging Director & Chief

Economist Asia Pacific, Standard &

Poors

Moderator:

Raghuram RajanChief Economic Adviser, Ministry of

Finance, India

SPONSORED BY

WORLD ECONOMIC FORUM


www.weforum.org/reports/financial-development-

report-2012


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CIVIL SOCIETYPROGRAM


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32 Civil Society Program

Civil Society Program

A wide-range o civil society organizations (CSOs) rom 32 members o the AsianDevelopment Bank attended the Civil Society Program (CSP). O the 319 CSOrepresentatives, the largest single grouping was rom trade unions led by GlobalUnion Federations, ollowed by a signifcant and active youth representation, Indian

national nongovernment organizations (NGOs), and some advocacy-orientedorganizations. Other groups included international NGOs, national and regionalnetworks, academia, and business-supported nonproft organizations.

As in previous years, the CSP commenced with a well-attended meeting betweenCSOs and ADB Management led by President akehiko Nakao. President Nakaoa rmed the importance o civil society in ADB operations and committed tointensiy engagement with a ocus on innovation and inclusive development. Heacknowledged youth as an important stakeholder in the development o Asia andthe Pacifc.

Te CSP included our panel discussions managed mostly by advocacyorganizations on key operation and policy issues:

i. Deconstructing ADB Climate Financeii. Food or AllWhat Will It ake? An exploration o the contribution o

smallholder armers to ood security and ADBs roleiii. Pension toward Socially Responsible Investmentsiv. Responsible Development Financing in Post MDG 2015

Te CSP also provided an opportunity or ADB partners and other civil societygroups to share and generate knowledge through events under the Learning withPartners program, which included the ollowing sessions:

i. Can the Finance Sector Lead the ransition toward SustainableDevelopment?

ii. Solutions Market and Associate Exhibits: Showcasing Innovation,

Partnerships, and Empowermentiii. Te Voice o Youth: A Civil Society Debateiv. Business Solutions to Development Problems and Development Solutions to

Business Problems: How Do We Make Tese REALLY Work or the Poor?v. How Civil Society Empowerment Improves Governance and Development

Results o Public Service Delivery.


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Civil Society Program 33

Te Solutions Market gathered representatives rom corporate and civil societyto showcase innovative solutions and products that have a proven social and/orenvironmental impact.

Te annual Voice o YouthA Civil Society Debate competition eatured the topdebating teams rom India and the Philippines. Tey debated a topic inspired by this

years Annual Meeting theme Development Trough Empowerment. Te Universityo the Philippines emerged as the debate winner.

Some o the key messages rom the CSP include the ollowing:i. ADB needs to open up more opportunities or dialogue and consultation

on policy as well as project concerns.ii. ADB has good policies in place, particularly the Public Communications

Policy and Saeguard Policy Statement. ADB should ensure that policies areeectively mainstreamed into project operations. In this regard, supportrom stakeholders is important to ensure their successul implementationon the ground.

iii. ADB, civil society, governments, and the private sector all have animportant role to play in poverty reduction.

iv. CSOs and the private sector can beneft rom continuing to shareknowledge and experience on good practices and innovations indevelopment work.

v. Youth should be empowered to actively participate in developmentdialogue and activities in charting the uture o Asia and the Pacifc.


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HOST COUNTRYEVENTS


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36 Host Country Events

India Day: Next Wave of Inclusive Growth

Renewed optimism in Indias growth story, along with the countrys strongeconomic undamentals, rugal innovation, massive demographic dividend, andcalibrated opening to the international economy have positioned the country tounleash the next wave o inclusive growth. Te panelists stressed that jobs and

inclusion need to be allies in pushing growth, where a business environment withair and predictable rules will unlock entrepreneurship, expand business activities,and create high-quality employment.

President Nakao and P. Chidambaram identifed the importance o industrialcorridors in spurring integrated urban development, and improving e ciencyo production and delivery o goods and services. President Nakao singled outthe DelhiMumbai Industrial Corridor, which is expected to raise the share omanuacturing in GDP rom the current 16% to 25% by 2022 and create 100million additional jobs. P. Chidambaram agreed with the transormational impacto the DelhiMumbai Industrial Corridor and noted two other corridors beingdeveloped in southern Indiathe BengaluruMumbai Economic Corridor and theChennaiBengaluru Industrial Corridor. Speakers during the inrastructure session,

led by Montek Singh Ahluwalia, underlined opportunities that every segment oinrastructure development presents to domestic and oreign entities, especiallygiven Indias strong growth perormance despite slack external demand and haltingglobal recovery rom the 2008 fnancial crisis.

As India urbanizes, it will require e cient multimodal transport systems,uninterrupted supply o power and water, good sanitation, and aordable housing.It needs to reduce postharvest losses and improve the inrastructure or high value-added agriculture and transport connectivity in rural areas.

Te most undamental challenge in inrastructure development is broadly acceptedto be investment fnancing. India has the capacity to absorb investment o $1

trillion in the inrastructure sector during the 12th Five Year Plan (20122017),with the targeted share o private investment to rise rom 38% to 47% during thecurrent plan period. Tis can be achieved by creating a vibrant bond market, usinginrastructure debt unds to refnance short-term bank debt with longer-termdebt, promoting take-out fnancing, and introducing guarantee products or creditenhancement o inrastructure bonds. Te Asian Development Bank is collaboratingwith India Inrastructure Finance Company to establish a partial credit guaranteeacility that would boost the credit ratings o an inrastructure project and make iteligible or insurance and pension und fnancing.

Indias states have increasingly become key stakeholders in the missiono inclusive growth. A panel o chie ministers and other ministersrom key states across India underlined their respective government

eorts to provide quality inrastructure and improve the regulatoryenvironment. Rapid growth in the country in the past ew years hasprovided diverse opportunities in the Indian states, with several nowbecoming conduits or rapid economic growth and internationalconnectivity. State governments now actively compete or internationalfnance, and pursue growth models that emphasize innovation andinclusive growth. Tis has resulted in many measures to streamlineland acquisition, boost manuacturing, expand e-governance,introduce mechanisms or time-bound redressal o grievances, andemphasize the need or balanced growth with distributive justice.

Panelists:

P. ChidambaramMinister of Finance, India


Montek Singh AhluwaliaDeputy Chairman, Planning

Commission, India

Investors and business leaders

Moderator:

Naina Lal KidwaiPresident, Federation of Indian

Chambers of Commerce and Industry

ORGANIZED BY INVEST INDIA,

A JOINT VENTURE OF FEDERATION

OF INDIAN CHAMBERS OF

COMMERCE AND INDUSTRY WITH

THE MINISTRY OF COMMERCE ANDINDUSTRY, IN ASSOCIATION WITH

THE MINISTRY OF FINANCE, INDIA


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Host Country Events 37

Innovation for Inclusion

Innovation has emerged as a major driver to raise living standards across theglobe, especially o those at the bottom o the pyramid and thus a means toachieve inclusive growth. oday governments, industry, business, researchers, andinnovators are increasing their ocus on exploring the potential o innovation todrive growth through sustainable solutions to the most signifcant challenges acingthe world we live inood and nutrition, education, health, water and sanitation,and better access to fnance.

Te seminar deliberated on our main issues that need to be tackled to ensure thatgrowth is sustainable and inclusive:

i. Burdensome regulations must be reduced to allow the private sector to bemore competitive and dynamic, and create more jobs or the burgeoning

workorce.ii. Improvements in the investment climate are vital, especially i countriessuch as India are to realize their potential in manuacturing. Ensuringbetter connectivity and availability o power, and promoting new growthcenters through appropriate inrastructure, including high-priorityeconomic corridors, can acilitate these improvements.

iii. While India may have some o the worlds best managers, scientists,and engineers, a large proportion o its workorce is still unskilled orsemiskilled. Te introduction o the National Skills Policy marks aparadigm shi rom the traditional government-led model o skillsdevelopment and vocational training to one that emphasizes private sector-led skills development.

iv. Recent ooding in megacities such as Bangkok and Beijing can oer lessons

to India on proper inrastructure planning and addressing the challenge ourbanization. India must adopt green urban planning early on.

In this seminar, entrepreneurs shared their experiences on how socially motivatedbusinesses are using innovative models to provide goods and services to people atthe bottom o the pyramid. Tey agreed that the government should be an enablerin creating an environment that allows specifc challenges aced by enterprises to beaddressed directly and expeditiously, particularly those relating to raising fnancing,regulatory and policy rameworks, and technical upgrading o units.

Panelists:

Dr. K Thomas AbrahamCEO, SATA CommHealth, Singapore

Nikhil JaisinghaniFounder, Mera Gao Power (MGP),

India

Neha JunejaCo-Founder, CEO, Greenway

Grameen Infra (GGI), India

Samir MathurFounder, FIA Technology Services

Pvt. Ltd., India

Abhishek SinhaCo-founder at Eko India Financial

Services Pvt. Ltd., India

Jebamalai VinanchiarachiFormer Principal Adviser to the

Director General, UNIDO, Vienna,Austria, Visiting Senior Research

Fellow, University of Malaya, Kuala

Lumpur, Malaysia

Rabeya YasminDirector, Challenging the Frontiers

of Poverty Reduction Targeting the

Ultra-Poor (CFPR-TUP) program in

BRAC, Bangladesh

Moderator:

Naina Lal Kidwai

President, FICCI and Country Head,HSBC India and Director, HSBC Asia

Pacific

JOINTLY ORGANIZED BY THE

MINISTRY OF FINANCE, INDIA

AND THE FEDERATION OF INDIAN

CHAMBERS OF COMMERCE AND

INDUSTRY


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38 Host Country Events

Indian Financial Markets: Fueling the Growthof the Indian Economy

Te Conederation o Indian Industry (CII) provided consultative and logistical

arrangements or the Asian Development Bank (ADB) Annual Meeting andorganized the India Pavilion at the venue to showcase Indias economic growthstory. Te pavilion was requented by senior o cials o ADB, InternationalFinance Corporation, International Monetary Fund, the World Bank, and otherinternational institutions; fnancial investors; and decision makers. Within the IndiaPavilion was India Adda, the quintessential Indian venue intricately woven into thecountrys social abric or networking and bilateral meetings.

CII also organized the Indian Financial Markets: Fueling the Growth o the IndianEconomy seminar in conjunction with the ADB Annual Meeting.

Since the advent o liberalization, the Indian fnancial market has matured andemerged as one o the astest growing markets. In the last decade, it has exhibited

strong growth driven by robust economic demand, consumption, and savings rate.

Developed fnancial markets provide or key macro- and microeconomic beneftsincluding higher economic growth, higher productivity and capital growth, higheremployment, wealth creation or private investors, and improved governancestructures, which drive entrepreneurial behavior. Gross domestic product growsaster in economies with mature and robust fnancial markets. In act, fnancialmarkets can emerge as the mode through which government can achieve inclusivegrowth through social and economic empowerment.

Te discussions at the seminar ocused on the strengths and challenges o the Indianfnancial market, and maintaining the pace and robustness o growth. Panelists

deliberated on the ollowing:

i. the prospects o the Indian fnancial market, ocusing on the benefts thatwill accrue on investments by various investors, including oreign anddomestic investors;

ii. how fnancial market development is taking place in major emergingmarkets and how Indias fnancial market is evolving;

iii. a air and inclusive model o fnancial market development, i.e., the scopeor government and the fnance industry to work on a model o inclusiveand sustainable fnancial systems, and i India could lead and provide ashowcase or development fnancing;

iv. various segments o fnancial markets and showcasing their capabilities,e.g., debt market, equity market, oreign exchange market, commodities

market, and banks and their linkages; andv. internationalization o Indian fnance: policy is needed that will support

Indian fnancial institutions operating internationally (in terms o bilateralor multilateral agreements that induce Indian fnancial institutions to havegreater opportunities in oreign markets, incentives, and related aspects).Tis will enable Indian fnancial institutions to expand the sphere oinuence in regional and global markets and beneft Indian industry.

Panelists:

Arvind MayaramSecretary, Economic Affairs, Ministry of

Finance

H. R. KhanDeputy Governor, Reserve Bank of

India

S. GopalakrishnanPresident, Confederation of Indian

Industry

Jignesh ShahChairman, National Committee on

Financial Markets, Confederation of

Indian Industry

Chandrajit BanerjeeDirector General, Confederation of

Indian Industry

Ajit RanadePresident and Chief Economist, Aditya

Birla Group

Ajay SrinivasanChief Executive, Financial Services,

Aditya Birla Group

Joseph MasseyManaging Director and Chief Executive

Officer, MCX Stock Exchange

R. K. JhaManaging Director, Gujarat

International Finance Tec-City

Manish KheraFounder, Chief Executive Officer and

Managing Director, FINO PayTech

Anjani SinhaManaging Director and Chief Executive

Officer, National Spot Exchange

Hemant SahaiManaging Partner, HSA Advocates

ORGANIZED BY THE

CONFEDERATION OF INDIANINDUSTRY


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About the Asian Development Bank

ADBs vision is an Asia and Pacific region free of poverty. Its mission isto help its developing member countries reduce poverty and improvethe quality of life of their people. Despite the regions many successes, itremains home to two-thirds of the worlds poor: 1.8 billion people who liveon less than $2 a day, with 903 million struggling on less than $1.25 a day.

ADB is committed to reducing poverty through inclusive economic growth,environmentally sustainable growth, and regional integration.

Based in Manila, ADB is owned by 67 members, including 48 from theregion. Its main instruments for helping its developing member countriesare policy dialogue, loans, equity investments, guarantees, grants, andtechnical assistance.

Asian Development Bank6 ADB Avenue, Mandaluyong City1550 Metro Manila, Philippines

Documents

Am Knowledge Seminar 2013 Web