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POLICY STATEMENT BY
MR. KIM HAK-SU
EXECUTIVE SECRETARY
OF UNITED NATIONS ECONOMIC AND SOCIAL COMMISSION FOR ASIA
AND THE PACIFIC

(Monday, 16 May 2005)

Mr. Chairman, Honourable Ministers,
Excellencies, Distinguished Representatives,
Ladies and Gentlemen,

It is an honour and a privilege to welcome you to the Ministerial Segment of the sixty-first Commission session in Bangkok.   A year ago, we met at the historic sixtieth session of the Commission in Shanghai and adopted the Shanghai Declaration, which has been guiding us in our activities.  Let me inform you of what has been done during the ensuing period and highlight where we are going.

The year 2005 began with attention focused on the tsunami catastrophe of 26 December 2004, with the United Nations playing a central role in coordinating relief and recovery.  Countries in the region also suffered from other natural disasters such as earthquakes, typhoons, floods and a drought, reinforcing the need for improvements in disaster preparedness and management.  These natural disasters will prove a constraint on economic development as a result of the destruction of human, social and physical capital, as well as infrastructure.  The tsunami and other natural disasters highlighted the extreme vulnerability of disadvantaged sectors of poor communities.  For this reason, the High-level Panel on Tsunami Recovery Development is being held this morning to share experiences and learn about the continuing challenges in rehabilitation and reconstruction. 

Despite the tsunami and other disasters, ESCAP economies had an impressive economic performance in 2004 with a growth rate of 7.2 per cent, the highest since 2000. The broad-based economic growth in the region was accompanied in most cases by low inflation and driven by increased exports, as well as strong domestic demand, including a revival in capital expenditure and foreign direct investment.  The impressive economic performance reaffirms the resilience of the regional economy in the face of a series of on-going and new challenges, the record rises in nominal crude oil prices, which contributed to a reversal in inflationary expectations.  Prospects for this year, however, indicate a slowdown in the economic growth of developing countries in the region to an estimated 6.2 per cent as the external environment weakens.  A rise in inflation and interest rates is likely as higher oil prices make their impact felt in the general economy.  Trade prospects are expected to be less bright.  Countries will have to respond to the changing economic environment.

In the area of social development, this year's Economic and Social Survey also highlights the extent of ageing, which is expected to increase at a faster rate in the next 50 years.  By 2050, nearly a quarter of the population in the Asia-Pacific region will be over 60.  A number of countries may well realize that they still do not have adequate social security systems for the elderly.  Apart from welfare issues, the economic impact of ageing in terms of labour productivity, savings and investment and economic growth can be severe if advance planning is not done.  ESCAP is paying special attention to this issue in the context of the Macau Plan of Action on Ageing for Asia and the Pacific. 

This year's theme study, Implementing the Monterrey Consensus in the Asian and Pacific Region: Achieving Coherence and Consistency, comes at a timely moment as the General Assembly is preparing for the High-level Dialogue on Financing for Development in New York in June.  The study provides the regional perspective in the implementation of the Monterrey Consensus.  It notes that, despite high economic growth and the accumulation of vast foreign reserves, there is a staggering financing gap, especially in the physical and social infrastructure.  The study recommends greater reliance on South-South regional cooperation, especially in finance, trade and investment, to reduce regional disparities.  There is also a recommendation for a feasibility study regarding an Asian Investment Bank along the lines of the European Investment Bank to meet the region's urgent need for infrastructure development.  It is my hope that the Ministerial Round Table tomorrow will come up with concrete proposals in the area of development financing to sustain economic progress in the region.

Mr. Chairman,

I would like to highlight selected key activities of ESCAP in the areas of poverty reduction, managing globalization and emerging social issues.  The secretariat continues to focus attention on assisting the member countries in achieving the Millennium Development Goals.  In September this year, world leaders will meet at United Nations Headquarters to review the implementation of the Millennium Declaration adopted by 189 countries at the Millennium Summit of the United Nations five years ago.   In this connection, the second regional MDG report, jointly undertaken by ESCAP, UNDP and the Asian Development Bank, will highlight challenges in the delivery of basic services to the poor and how regional cooperation can be further strengthened to assist poor countries in achieving the goals by 2015.  The report will be launched in Manila in August 2005 to provide Asia-Pacific perspectives at the Summit.  

In March this year, ESCAP organized the fifth Ministerial Conference on Environment and Development in Asia and the Pacific in Seoul.  The Conference charted an important pathway to sustainable development for the region for the next five years. Bearing in mind the region's diversity, the Conference, under the overarching theme of "Achieving environmentally sustainable economic growth or Green Growth", adopted a declaration, a regional implementation plan and the so-called Seoul Initiative.  The challenge is not to limit growth but to make it environmentally sustainable and create a win-win synergy between the environment and the economy, so that environmental sustainability can be promoted as an opportunity rather than a constraint.

In the area of trade, the ESCAP region has witnessed the fastest proliferation of regional and bilateral trade agreements, making an important contribution to development and poverty reduction.  However, it is imperative that regional and bilateral initiatives not undermine but rather complement the multilateral trading system.  I hope that the proactive role played by various Asian and Pacific countries in the current negotiations under the Doha Development Agenda will help contribute to a successful Doha Round outcome with tangible results before the Sixth WTO Ministerial Conference, which is scheduled to be held in Hong Kong, China in December this year. The stakes are simply too high to let the Round fail.  In preparation for the Conference, ESCAP plans to organize a High-level Policy Dialogue for Asian and Pacific senior trade officials, the private sector and other stakeholders later this year.

In that connection, I would also like to inform you about the productive and fruitful meeting of Asia-Pacific Business Forum 2005 that took place in the last few days, attracting more than 400 participants from governments, businesses, academic circles and civil society.

Mr. Chairman,

At its sixtieth session, the Commission requested the secretariat to continue its coordinating role in the regional preparations for the second phase of the World Summit on the Information Society, to be held in Tunisia in November 2005. The secretariat in cooperation with various stakeholders has initiated a number of activities aimed at formulating a regional action plan towards an information society and the required infrastructure development for the Asian information highway.  The Plan emphasizes the need to create an enabling ICT policy environment and build regional capacity, especially in human resources, to fully use the digital opportunities provided by ICT for sustainable development.

In a similar vein, ESCAP is working towards the formulation of an integrated international intermodal transport system, which could make a significant contribution to advancing economic and social development.  I am pleased to inform the Commission that eight countries have already ratified the Intergovernmental Agreement on the Asian Highway Network, which will enter into force in July this year.  A similar agreement on the Trans-Asian Railway is now being negotiated. In parallel with this work, the secretariat is working closely with member countries and other partners to promote the facilitation of international road transport.

Under the theme of emerging social issues, ESCAP continues to undertake activities in follow-up to the Beijing Declaration and Platform for Action and the Biwako Millennium Framework.  A continuing concern is the HIV/AIDS epidemic with 9 million in our region battling the disease.  Last year alone, 1.2 million persons were affected, a historic rise.  Further action is required, and I wish to urge a higher level of commitment of effort and resources to fight the spread of HIV/AIDS in our region.

Mr. Chairman,

These have been but a sample of the activities being undertaken by ESCAP to implement the Shanghai Declaration.  In addition to these activities, one of the main goals of the secretariat is to make ESCAP a "knowledge organization".   To achieve it,  we are committed to working with other agencies, including UNDP, the Asian Development Bank, and the World Bank to consider the possibility of establishing in the longer term a regional knowledge resource centre that is shared by the four organizations.  Work has begun on the new system to enable us to help to attain our three-pronged objective of managing globalization, reducing poverty and addressing emerging social issues.  In this way, we hope to add value to our services to member countries.

Thank you very much for your attention.