| Addressing a press conference at the opening of the four-day annual general meeting of the Asian Development Bank (ADB) here today, Kuroda said oil producers should increase their investments in exploration and refineries and enhance capacities. |
| He said oil prices were crucial for regional economies and that, according to ADB projections, the Asia-Pacific region would achieve an overall economic expansion of 7.2 per cent in 2006. The growth forecast, however, was based on the assumption that oil prices will soften. |
| Kuroda said there could be some decline in prices, though not much and the rapid growth of Asian economies meant they would continue to face high energy prices. The answer to the problem was to adopt energy efficiency initiatives both on the supply and demand sides. |
| Kuroda said the bank was expected to finalise a new medium-term (2006-08) strategy soon after the meeting. The strategy would confirm ADB's fundamental goal of poverty alleviation and help bridge the widening gap between the rich and the poor. |
| The shadow of poverty persisted even as Asian economies were growing. Broad-based growth could only be achieved if people had access to basic services, and if the poor had decent jobs. Growth should not be at the expense of the environment, Kuroda said. |
| According to Kuroda, the greatest threat to private investment and growth in many countries is the high of risk level arising from regulatory weakness, policy uncertainty and market distortions. |
| "We must improve governance and maintain our vigilance against corruption," he said. |
| Emphasising that ADB would focus on regional cooperation and integration, Kuroda said he was aware there were some internal and external conflicts among South Asian countries. |
| However, such conflicts should not stop these countries from cooperating on the economic front, he added. |
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