Future Directions
The ADB has entered its 20th year. Bank operations, as always, will continue to reflect the rapidly changing economic and financial needs of the region and respond appropriate- ly to changing circumstances. For this reason, in the early 1980s the Bank, with the assis- tance of outside experts, made a comprehen- sive study of its operational priorities and plans covering the entire decade. Now we are carrying out an in-house up-date of that study focusing on the remaining years of this decade. I look forward to the results of this new study and to discussions with the Board of Directors later this year.
The Philippine situation is one in which a prompt response to changed circumstances is required. The task of restructuring its economy is formidable. While this is fun- damentally an internal responsibility, it will re- quire external help if results are to be achieved without delay. The Bank is prepared to assist the Government in ways that would be most useful, consistent with Bank policies and resources. I am happy to report that early this month the Board of Directors approved a supplementary loan for the timely implemen- tation of selected on-going projects in the Philippines which will help depressed areas in the country.
1986 has also witnessed a major event in the expanding role and growing importance of the ADB. I refer to the admission of the People's Republic of China to membership in the Bank. As the country with the largest area and largest population in our region, the
membership of China greatly enhances the scope, geographical coverage and operational importance of our institution.
The start of lending to India and the ad- mission of China as a member add new dimensions to future Bank operations in the region and have already enhanced the role and significance of the Bank in Asia. The number of people served by the ADB will in- crease to 21⁄2 billion, representing half the world's population. This will pose many new challenges for the Bank in terms of efficient management of its financial and personnel resources. I intend to ensure that the Bank meets these challenges and improves upon the quality of services we provide to our ex- isting members, especially our poorer and smaller developing member countries.
Since I became President four years ago,
I have emphasized the important role of the private sector in the development process. No doubt in many developing countries the public sector will continue to play a major role in economic development and remain the main channel of development funding for many years to come. However, I believe, based on my own experience, that economic develop- ment can more often be better achieved through private initiative, ingenuity and investment:
Promotion of co-financing with commercial banks, commencement of equity investment operations, the start of unguaranteed loans to the private sector, and numerous seminars on privatization, capital market development, domestic resource
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