Cebu, Jan 15 (UNI) Asian Development Bank (ADB) President Haruhiko Kuroda told the 2nd East Asia Su

Cebu, Jan 15 (UNI) Asian Development Bank (ADB) President Haruhiko Kuroda told the 2nd East Asia Summit here today that countries of the region should build on their recent economic achievements to forge ties that can achieve a vision of lasting stability and prosperity for them.

''Almost a decade ago, in the aftermath of the 1997-1998 financial crisis, many were about to write off East Asia's future,'' Mr Kuroda said while presenting a report on ''East Asia Regional Economic and Financial Situation'' to Prime Minister Manmohan Singh and leaders of 15 other countries attending the summit.

The region converted the crisis into an opportunity to address underlying structural weaknesses and in less than a decade, the region's economies had become strong again.

He said the emergence of China as a regional and global economic giant and the awakening of ''another giant -- India -- as another rising economic powerhouse and an important link between East Asia and South Asia were some of the major developments in recent times.

ADB estimates suggest that East Asian economies grew by 8 per cent in 2006 - a record since the crisis.

''Excluding Japan, the region grew last year by almost 8 per cent - and China alone by more than 10 per cent. The combined GDP of the 10 ASEAN economies is estimated to grow by close to 6 per cent while that of India is likely to be about 9 per cent,'' he pointed out.

''With growth moderating in the United States and Europe, our assessment is that East Asian economies would post a somewhat slower, yet solid, growth this year,'' Mr Kuroda said.

''A bit of arithmetic shows that if the current growth trends prevail, by 2030 East Asia, excluding India, would account for about 40 per cent of the world economy - similar to the figure in 1820 - around the time a prolonged decline in the global importance of East Asia began. The region is clearly re-emerging,'' he said.

To take better advantages of the sources of dynamism within East Asia, he said it is essential to facilitate the cross-border movement of goods, services, capital, and people.

''Inadequate transport and communication infrastructure; uncompetitive transport and logistics services; and restrictive policies will all push up the cost of doing business in East Asia,'' the ADB chief said.

According to him, trade and investment cooperation was also a key pillar of the evolving regional architecture.

Mr Kuroda said to reap the benefits of free trade agreements (FTAs), East Asia must chart a clear road map of a region-wide FTA.

He suggested that the existing FTAs between ASEAN and each of its dialogue partners could lay the foundations of an East Asian FTA.

More efficient regional reserve pooling, comprehensive surveillance, and greater policy coordination among East Asian economies could ensure financial stability and reduce the risk of future crises.

Cooperation should also be fostered in areas that will help East Asia manage other cross-border risks, such as environmental degradation, communicable diseases, and natural disasters, he told the conference.

The ADB President said the move by ASEAN Leaders to bring forward the deadline for the establishment of the ASEAN Economic Community (AEC) to 2015 should help accelerate the pace of integration and promote its role as a regional hub in the process.

Mr Kuroda said poverty reduction was one of the major challenges facing the region, with some 750 million people subsisting on less than two dollars a day, including 220 million on less than one dollar a day.

''Asia is home to 12 of the world's 15 tallest buildings - a testament to its ability to rapidly generate wealth. But it is also home to some of the world's largest slums,'' he pointed out.

He also underlined the huge infrastructure gaps and bottlenecks in electricity, telecommunications, water and sanitation, and transport networks.

ADB estimates that Asia needs a total of three trillion dollars for infrastructure over the next ten years, or 300 billion dollars per annum.

''Asia's foreign exchange reserves are now approaching $3 trillion - or close to two-thirds of global reserves. Yet, these infrastructure needs are not being adequately met,'' he said.

Mr Kuroda also urged the leaders to pay attention to environmental damage. ''The promotion of energy efficiency and clean energy development is needed to protect the environment,'' he said.

He also referred to other common threats, like communicable diseases, cross-border crimes, and natural disasters - problems that no single country can manage on its own. They require collective regional actions, he added.

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