..Press Release................................ UNESCAP News Services

Date 21 May 2007
Press Release No. L/26/2007/CS63/20

Sixty-third session of ESCAP
Ministerial meeting

Almaty, Kazakhstan
21 May 2007

Policy Statement by Mr. Kim Hak-Su
United Nations Under-Secretary-General
and Executive Secretary
Economic and Social Commission for Asia and the Pacific

Ministerial Meeting
Monday, 21 May 2007

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

I am pleased to begin my statement by being the bearer of good news.  For the eighth consecutive year, developing economies in the Asia-Pacific region grew faster than those in all other regions of the world, at 7.9 per cent in 2006, up from 7.6 per cent in 2005. Developed economies in the region expanded by a healthy 2.2 per cent in 2006. Asian and Pacific nations are rapidly emerging as engines of global growth. Developing countries in the region alone account for 16 per cent of global output and one-third of global growth.

In 2007, the region’s developing economies are projected to grow at 7.4 per cent, slower than in 2006, but still impressive.  As the international economic environment weakens, the momentum for growth will come from within our region through the continued expansion of China and India and the resurgent dynamism of Japan.

Our impressive economic performance is all the more notable because it occurs against the backdrop of a riskier global environment. The main cause is the slowing United States economy, as we are already witnessing in its housing market. A moderate decline in global electronics demand in 2007 may also dampen the region’s prospects. Currency appreciation is expected to continue in 2007, driven by capital inflows on a tide of buoyant global liquidity. It will be increasingly difficult for monetary authorities to pursue an independent monetary policy in response to shocks, while targeting exchange rates in the backdrop of more open capital accounts. We cannot ignore other risks, ranging from an oil price shock, a disorderly unwinding of global imbalances, and a reversal of the sustainability of the Japanese economic recovery, to an avian flu pandemic.

All these challenges and policy issues have been analysed in detail in the 2007 issue of the Economic and Social Survey of Asia and the Pacific. The 2007 Survey also highlights the cost of gender discrimination. The report finds that despite some progress, inequality and discrimination against women continues to cost Asia-Pacific economies almost US$80 billion a year. We show that major improvements can be made at little cost. However, political commitment is necessary to support women and girls, in areas as basic as primary education and access to health care.

Mr. Chairman,

A key foundation for sustainable growth in our region is the good health of our citizens. It is particularly worrying that relatively slow progress is being made towards the health-related Millennium Development Goals. In recognition of the importance of this issue, the theme study for the current Commission session is entitled Development of health systems in the context of enhancing economic growth towards achievement of the MDGs in Asia and the Pacific.

The findings of the study demonstrate that some countries have scored impressive economic gains on the foundation of productive investments in education and health. Other countries in the region have shown that it is possible to achieve good health even in the absence of high levels of GDP, through sound social policies.

Despite the progress that has been made, five million children still die in this region before they reach the age of five; the region accounts for half of the world’s maternal deaths; and it remains off-track on the HIV/AIDS targets.  There are serious deficiencies in infrastructure, human resources and essential medicines within health systems.

I believe that the health-related MDGs can be achieved by making progress in a few key areas. Reducing gender inequality and providing safe drinking water and improved sanitation are crucial first steps. Considerable fiscal space exists for countries in the region to increase investments in health.  This needs to be combined with more efficient use of existing resources.

Mr. Chairman,

I am pleased to report that in compliance with the Commission’s guidance to respond to the dynamism and the changing needs of the member States, the focus of the secretariat’s work has ranged from normative and analytical work, and national capacity-building, to the provision of advisory services. ESCAP has also continued to strengthen regional and subregional cooperation. Special attention was paid to the needs of  LDCs, LLDCs, economies in transition, and the Pacific island developing countries in all our work.

Let me highlight some of our key activities in 2006.

Mr. Chairman,

As we look forward, ESCAP will focus on areas that can be most effectively addressed through regional advocacy, consensus-building, intermediation and cooperation. Greater emphasis will be placed on high-quality analytical and normative functions, supported by regional technical cooperation activities.

Mr. Chairman,

You will find a detailed account of these issues in my Report on the Work of the Secretariat since the Sixty-Second Session of the Commission.

Mr. Chairman,

I hope my remarks provide an overview of the challenges that I feel will be confronted by our region in the near future.  ESCAP has been at the forefront of championing innovative and collaborative solutions. We look to the future with a sense of optimism that our region stands at the threshold of a historic opportunity to achieve development for all our citizens.  We have been honoured by the steadfast support you have given to our efforts and we continue to stand ready to assist in fulfilling your highest expectations. 

            Thank you very much for your attention.

 

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