Intra-Asian trade seen key to growth

Asia must cut its 'over-reliance' on exports to developed countries
and increase trade with each other to return to growth rates strong
enough to reduce poverty, a top regional banker said Friday. As
consumers in developed nations slash their budgets, export-oriented
Asian economies are unlikely to the growth rates seen before last
year's economic crisis, Asian Development Bank president Haruhiko
Kuroda said here. 'The outward-oriented Asian growth model has
brought tremendous benefits to the region in the past and can continue
to do so in the future,' he said at an international conference.
'It would serve no one to turn inward and protectionism should be
avoided at all cost. But the concentration on G3 markets for final
product sales needs adjustment.' The G3 refers to the United
States, Europe and Japan, where 60 per cent of Asia's main export are
sent. Kuroda said the global economic crisis that started in the
United States last year 'exposed developing Asia's over-reliance on
extra-regional markets for both exports and capital flows.' The
region must hasten efforts to increase internal trade and stimulate
domestic consumption as key growth drivers. While Asia is
rebounding from the crisis faster than other regions, it was unlikely
for it to return to sustained strong growth unless key drivers are
'rebalanced' to give more weight to domestic stimulants, Kuroda said.
Otherwise, economic growth will not be strong and long enough to
make a dent on the large number of poor in the region, he added.
The Manila-based institution, whose aim is to reduce regional
poverty, said Asia's poor have been especially hard hit partly
because social safety nets to cushion the impact of the economic
slowdown have been inadequate.