The Asia and Pacific region must rebalance growth amid the influence of global financial crisis, said Asian Development Bank (ADB) President Haruhiko Kuroda on Monday at the opening session of the 42nd ADB Board of Governors Annual Meeting in Bali, Indonesia.

"By rebalancing export-driven growth with a greater reliance on domestic demand and consumption, Asia can lead the way in charting a new, globally beneficial development course," he said.

In that case, Kuroda called on Asian countries to reinforce domestic demand and revitalize their domestic economies. He said that these countries need to spend more on health, education, and social security to reduce household needs for precautionary savings; need strategies to transfer more corporate savings to households to encourage greater consumer spending; and need the policies that promote small and medium-sized enterprises and service industries to better align domestic production with domestic demand.

Kuroda added that rebalancing also requires a stronger and more stable regional investment climate to channel savings into effective and efficient investment within the region. Therefore, Asia needs a seamless infrastructure, which includes physical assets and the enabling policies, regulations, and institutions.

"ADB's infrastructure investments last year totaled more than US$5 billion in transport and energy alone. But with financing needs estimated at US$750 billion a year, much more needs to be done," he said.

"With Strategy 2020, the replenished Asian Development Fund, a substantial capital increase and our ongoing commitment to institutional effectiveness, ADB is well-positioned to play an expanded role in the region's future development," Kuroda said.

(Xinhua News Agency May 4, 2009)