US asks Asia to aid imbalance adjustment

The United States on Saturday asked Asian nations to play a "critical role" in the process of adjustment to global imbalances by pursuing greater exchange rate flexibility, strengthening domestic demand and financial
sector reforms.

Economic adjustment is a shared responsibility to improve global imbalances and economic development. The strong growth and low inflation in Asia in the past few years have comealong with an emergence of global imbalances, Kenneth l Peel, temporary alternate governor in the ADB, said at the ADB annual session here.

The imbalances should be addressed so that rapid global growth could be sustained. ADB's private sector operations have reaped positive results as more companies are able to access resources and expertise. The institution should continue to create the right regulatory environment to foster strong public-private partnerships to promote growth, Peel said.

Multilateral development banks were established to blaze development trails by taking risks that the commercial markets were reluctant to assume, Peel said.

ADB had demonstrated its capacity to promote private-sector growth and it should continue to lead the way in this spirit. The bank should ensure development additionality rather than cherry picking the natural winners, the US representative in ADB said.