Highlights: ADB Annual Meeting

HIGHLIGHTS ADB ANNUAL MEETING GERMANY 2016

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Printed on recycled paper Contents

Letter from The Secretary 4

Annual Meeting Facts and Figures 5 “In order to realize their full growth potential, Asian Annual Meeting Topics 6 countries must maintain ADB Seminars and Institutional Events 9 sound macroeconomic policies; invest more in Sponsored Seminars 23 infrastructure, human Host Country Events and Seminars 32 capital, and technology; develop efficient ﬁnancial Civil Society Program 41 markets; and improve the investment climate.” Special Features 50 —Takehiko Nakao, ADB President and Chair of the Board of Directors

©Photothek/BMZ Letter from The Secretary

THANK YOU FOR PARTICIPATING in the 49th Annual Meeting of Board of Governors of the the Asian Development Bank (ADB) in Frankfurt, Germany. About 3,500 participants took part in discussions about how ADB can further scale up efforts to reduce poverty in Asia and the Pacific and help achieve a more sustainable future. The 2016 meeting saw an unprecedented level of representation from both German and European leadership, among them German Chancellor Dr. Angela Merkel, European Central Bank President Mario Draghi, and former German President Horst Köhler. Because Asia–Europe cooperation continues to be a relevant topic for our stakeholders, the 2016 seminar program held discussions on options to maximize the gains and minimize the negative spillovers from increasingly integrated macroeconomic, trade, and investment links between the two regions. Other panels discussed ways to advance climate-resilient development; explored how citizens, businesses, and city administrations can build resilient cities of the future; and examined how labor market regulations and social protection systems can ensure quality employment. This year, ADB introduced the “private sector day,” a series of seminars intended to highlight its catalytic role in inclusive growth. A panel comprised of ADB Governors discussed the need for tailoring structural reforms to address constraints to sustained growth among ADB members in the “In choosing Governors’ Seminar. ADB Governors also discussed the interaction between trade, technology, and good jobs, as well as Asia and the Pacific’s 2030 prospects in the ‘Cooperating for context of the United Nations’ Sustainable Development Goals. Civil society organizations (CSO) significantly raised the quality of development Sustainability’ as discourse. Youth representatives defined the space for civic engagement in achieving the Sustainable Development Goals. Our CSO partners examined the implementation the meeting’s theme, of ADB’s safeguards policy, considered the landscape of climate change finance in Asia and the Pacific, and provided suggestions on how to further engender core labor Germany renewed its standards in ADB operations. Of course, the ADB Annual Meeting would not be complete without the traditional interaction between CSO participants and senior ADB partnership with ADB Management on the first day. and its members in In choosing “Cooperating for Sustainability” as the meeting’s theme, Germany renewed its partnership with ADB and its members in adopting a low-carbon growth adopting a low-carbon path. Germany has been in the forefront of new technologies and incentives promoting the shift to clean energy. It has made strides toward achieving inclusive growth through growth path.” technical and vocational education and training support for women, and creating incentives for a more fair supply chain. Germany also introduced an interactive exhibit called the “City of Sustainability” and arranged a series of host country seminars and thematic excursions around that theme. Frankfurt 2016 is the first carbon neutral ADB Annual Meeting, which is poised to be independently certified as a sustainable event for the second year in a row. Visit the 2016 Annual Meeting website to access the Reinforcing their shared commitment to the sustainable development agenda, Summary of Proceedings, news articles, event photos, ADB and Germany signed the Frankfurt Declaration that details their cooperation videos, and more: adb.org/annual-meeting/2016 on climate financing, and technical and vocational education and training. At the Frankfurt Goethe University, ADB and Germany hosted a tree-planting ceremony and inaugurated its first ever “Green Lecture Hall” made of living trees and dedicated to promoting knowledge exchange on climate change and energy use. On behalf of ADB, I thank the Government of Germany, the German Ministry of Economic Cooperation and Development, and the City of Frankfurt for their unparalleled support for this year’s meeting. It has set the stage for the commemoration of ADB’s 50-year anniversary in Yokohama, Japan, in May 2017. See you there!

Woochong Um The Secretary Asian Development Bank

4 ANNUAL MEETING HIGHLIGHTS Annual Meeting Facts and Figures

3,450 Green Lecture 1st Carbon Neutral participants Hall launched Annual Meeting Photos ©Photothek/BMZ

Taking the traditional tree-planting ceremony ADB and BMZ agreed to purchase carbon credits a step further, Germany and ADB launched the to fully off set the emissions produced in staging “Green Lecture Hall” at the Frankfurt Goethe the Annual Meeting. Following a third party audit University. The trees planted in the campus of all sustainability measures undertaken by the grounds are envisioned to become a living and fourth quarter of 2016, the ADB Annual Meeting is thriving venue for knowledge exchange about poised to be certiﬁ ed as a sustainable event for the climate change and energy use. second year in a row. Delegates (16%) Civil society (10%) economies represented by Media (7%) participants Financial institutions (19%) 90 Other private sector companies 3 and federations (6%) ADB members from Asia and months Science and academia (5%) 45 the Paciﬁ c age of the Observers (5%) youngest ADB personnel (5%) Annual Meeting Host country secretariat (1%) nonregional members participant Other ADB and host country 19 guests (25%) Baby Walter attended the ADB Annual Meeting nonmember economies together with his parents and made his stage debut Social Media Activity 26 as a representative of future generations. 3,400 #ADBFrankfurt tweets twitter.com/ADB_HQ

OVER 178,000 Facebook users reached facebook.com/AsianDevBank and facebook.com/BMZ.Bund 2,700 users watched the Facebook live coverage of select Annual

Meeting events Cloud Word Annual Meeting

49TH ANNUAL MEETING OF THE ASIAN DEVELOPMENT BANK 5 Annual Meeting Topics

The ADB Annual Meeting focused on a number of key topics for sustainable development in Asia and the Paciﬁc.

Clean energy and climate change Environmentally sustainable growth is one of the three pillars of ADB’s strategy. Clean energy and climate change, including improving disaster risk resilience are crucial components of this agenda. In 2015, ADB invested $2.5 billion in clean energy “We need to move from projects and $3.86 billion in projects that reduced disaster risk and improved disaster resilience. To mitigate the impacts of climate change, ADB also committed to double global trade without any its annual climate financing to $6 billion by 2020, and became the first multilateral development bank accredited to receive financing from the Green Climate Fund limits or standards to a for projects to enhance climate change mitigation and adaptation among ADB situation of fair trade as developing members. part of a fair partnership.” Seminars

—Angela Merkel, • Innovating for Economic and Environmental Sustainability in Asia and the Pacific Federal Chancellor of Germany • Sustainable Solutions for Micro, Small, and Medium-Sized Enterprises • Germany's Energy Transition—A Model for Asia? • Promoting Renewable Energies in Asia: The Quality Challenge • Safeguarding Climate Change Finance in Asia and the Pacific • Mobilizing Private Capital for Green Finance in Asia and in Europe • Advancing Clean and Climate-Resilient Development in Asia and the Pacific

Sustainable supply and production chains To reduce poverty in the region, ADB believes that economic growth should benefit the poorest and most vulnerable communities. As such, ADB supports projects that will create economic opportunities for people in rural areas, ensure access to essential health and education services to disadvantaged people, and deepen financial inclusion. ADB’s Trade Finance Program for example, works with over 200 partner banks to provide small to medium-sized enterprises with financial support they need to engage in import and export activities in the most challenging markets. © Photothek/BMZ German Development Minister Gerd Müller, ADB Seminars President Takehiko Nakao, and Federal Chancellor Angela Merkel at the Fairtrade booth in the City of • Quality Employment and a Better Workplace Sustainability. • A Grassroots Perspective on Integrating Core Labor Standards in ADB

6 ANNUAL MEETING HIGHLIGHTS • 2015 ADB Private Sector–CNBC Awards and Panel on the Bottom Line and the Bottom of the Pyramid • Promoting Decent Work in Global Value Chains: Multi-Stakeholder Initiatives and Vision Zero Fund

Technical and vocational education and training; employment

Full and gainful employment is crucial for growth to be inclusive. To this end, ©Photothek/BMZ ADB has invested more than $586 million in 2015 for projects that broaden support for ADB President Takehiko Nakao and Hans- secondary education and technical and vocational education and training. ADB also Joachim Fuchtel, ADB Governor for Germany and ensures that its infrastructure projects provide employment to local communities. Parliamentary State Secretary, Federal Ministry for Economic Cooperation and Development, Germany Seminars The “Frankfurt Declaration” on • 2015 ADB Private Sector–CNBC Awards and Panel on the Bottom Line and the climate action, technical and Bottom of the Pyramid • Quality Employment and a Better Workplace vocational education and • A Grassroots Perspective on Integrating Core Labor Standards in ADB training • Empowerment through Technical and Vocational Education and Training: Innovative Financing Approaches ADB and the German Federal Ministry for • Quality Education and Skills—Enablers for Decent Work Economic Cooperation and Development • Promoting Decent Work in Global Value Chains: Multi-Stakeholder Initiatives (BMZ) agreed to join forces for progress and Vision Zero Fund on climate action and technical and vocational education and training (TVET). The "Frankfurt Declaration" spells out Cities, infrastructure, and urban the intention of ADB and Germany to launch an Asia Climate Finance Facility development (ACliFF) in 2017. ACliFF will leverage In 2015, ADB approved more than $2 billion urban development projects, focused on public and private sector investments in expanding access to public services and improving mobility and livability. ADB’s Future climate change mitigation and adaptation Cities program will engage with select cities over 15–20-years in developing planning in support of the goals of the COP 21 Paris principles that improve livability, including resilience to the impacts of climate change. Agreement. ACliFF will assist developing countries in Asia and the Paciﬁc through Seminars new and innovative coﬁnancing measures, including guarantees and climate • Moving Toward Cities of the Future—Delivered, Driven, or Demanded? risk insurance, which will support the • Infrastructure-Driven Growth Model of Multilateral Development Banks in the country-led implementation of Nationally Context of Planetary Limits Determined Contributions for reducing • Urban Innovations—Smart, Secure, and Sustainable Cities 2030 greenhouse gas emissions and for investing in resilience.

Information and communication ADB and the BMZ also signed a declaration of intent to deepen and technology increase cooperation to promote TVET in Access to information and communication technology (ICT) is critical in bridging Asia. The joint effort will strive to better the digital divide and enhancing connectivity in Asia and the Pacific. ICT innovations match education and training with the are also important tools to improve disaster resilience, financial inclusion, and skills that employers demand and boost employability of disadvantaged communities. In 2015, ADB provided a $25 million workplace-based training. The aim is loan in the Pacific for a fiber-optic submarine cable that will deliver affordable to foster inclusive growth including the broadband internet access to the public. economic empowerment of women, which is in the spirit of the women’s economic Seminars empowerment initiative launched by Germany during the German G7 • Inclusive and Sustainable Growth through Affordable Access and Smart presidency. ADB is one of the biggest Financing of Information Technology multilateral donors for vocational training • Role of Innovative Information and Communications Technology Solutions for in developing Asia. Among the activities Financial Inclusion planned for 2017 is a joint regional vocational training conference.

49TH ANNUAL MEETING OF THE ASIAN DEVELOPMENT BANK 7 International development, economics, and finance For ADB to succeed in its mission, it must continue to adapt and evolve with the changing development landscape and the multiple economic challenges facing the region, including: lower global commodity prices, declining trade, reduced remittances, financial volatility, and increasing pressure on exchange rates. ADB’s support for the finance sector in the region rose to more than 100% from $1.1 billion © Photothek/BMZ in 2014 to $2.3 billion in 2015. Operations were concentrated on money and capital markets, infrastructure and investments, with support for sound and efficient legal “I believe we need a new and regulatory frameworks for good governance. spirit of partnership in international politics, Seminars • Sustainable Solutions for Micro, Small, and Medium-Sized Enterprises underpinning a structural • 2015 ADB Private Sector–CNBC Awards and Panel on the Bottom Line and the transformation of our Bottom of the Pyramid • Asia–Europe Economic Cooperation: Fostering Greater Trade and Investment economies and societies.... • Space for Civil Society Engagement in the Implementation of Sustainable Development Goals: Will It Shrink or Expand? This could ultimately lead • The Future of Financial Markets: A Changing View of Asia to a new global social • New Asian–European Approaches on Finance and Infrastructure • Asia–Europe Macro Links: Opportunities and Spillovers contract between the rich • Internationalizing Asia’s Capital Markets—The Role of Governments and Multilateral Institutions in Connecting East and West and the poor, the old and • Who Wins and Loses from Asia and the Pacific Rebalancing? A Macro-Credit the young, between today Analysis • Governors' Seminar: Structural Reforms: Pathways to Sustained Growth and tomorrow.” • Mobilizing Private Capital for Green Finance in Asia and in Europe • Safeguarding Climate Change Finance in Asia and the Pacific —Horst Köhler • Role of Innovative Information and Communications Technology Solutions for Former President of Germany Financial Inclusion ADB administration and governance Stronger, better, and faster—such is ADB’s pledge as it commemorates its 50th year of operation. Following the midterm review of Strategy 2020, ADB has strengthened its resolve to be a leading results-based institution committed to the highest standards of environmental and social safeguards, and accountable and transparent to its shareholders and the public it serves.

Seminars

• Meeting between Civil Society Organizations and ADB Management • Institutional Reforms to Improve Implementation of ADB’s Safeguards Policy • Procurement Opportunities in ADB-Financed Projects • Lessons Learned on Implementing ADB’s Accountability Mechanism • How Did ADB Perform? The 2015 Scorecard • Innovating for Economic and Environmental Sustainability in Asia and the Paciﬁc

8 ANNUAL MEETING HIGHLIGHTS ADB Seminars and Institutional Events

Economic, ﬁnance, and development issues of current interest to ADB stakeholders, as well as ADB operations, business opportunities, and performance.

Governors’ Seminar Structural Reforms: Pathways to Sustained Growth10

Asia–Europe Economic Cooperation: Fostering Greater Trade and Investment12

Quality Employment and a Better Workplace13 The Future of Financial Markets: A Changing View of Asia14

Moving Toward Cities of the Future— ©Photothek/BMZ Delivered, Driven, or Demanded?15 “The global low interest rate environment is a Asia–Europe Macro Links: Opportunities and Spillovers16 symptom of challenges Advancing Clean and Climate-Resilient Development in Asia in the world economy, and the Paciﬁc17 not its cause. If interest Procurement Opportunities in ADB-Financed Projects18 rates are to rise again to sustainably higher Lessons Learned on Implementing ADB’s Accountability Mechanism19 levels, it is those underlying causes that How Did ADB Perform? The 2015 Scorecard20 need to be addressed.” Innovating for Economic and Environmental Sustainability —Mario Draghi, European in Asia and the Paciﬁc21 Central Bank President Governors’ Seminar Structural Reforms: Pathways to Sustained Growth

AT THE GOVERNORS’ SEMINAR, panelists discussed the role of structural “While investments in infrastructure, human reforms in driving economic growth, capital, and technology remain critical, reducing poverty, and achieving the Sustainable Development Goals. structural reforms hold the key to boosting The post-crisis period has witnessed a slowdown in growth in both developing developing Asia’s potential growth.” and developed economies. Indeed, developing Asia’s growth also moderated after the crisis. While crisis-related remain critical, structural reforms recent decades. They will remain so in cyclical factors are at play, a major hold the key to boosting developing the years ahead. concern is the slowdown in potential Asia’s potential growth by continuing The panelists shared experiences growth. A recent ADB study shows to reduce impediments to efficient and recent efforts of their respective that potential growth in developing resource allocation, improve technical countries in scaling up reforms in trade Asia moderated from 8.4% in 2007 to and managerial efficiency, enhance an and investment regimes, macroeconomic 6.7% in 2014—with many economies economy’s ability to respond to shocks, management and public finance, experiencing either falling labor force and lay the foundations for greater financial regulation, and public sector growth due to demographic changes, or private investment and innovation. governance. They also highlighted the declining labor productivity growth, or Structural reforms that addressed importance of tailoring the reform both. specific domestic or behind-the-border agenda to each country’s specific needs. While investments in infrastructure, constraints have been key drivers of rapid Parliamentary State Secretary human capital, and technology economic growth in developing Asia in Michael Meister discussed reform

10 ANNUAL MEETING HIGHLIGHTS ADB SEMINARS AND INSTITUTIONAL EVENTS experiences and lessons in Germany, in strengthening Indonesia’s Economic Affairs Secretary especially since the global ﬁnancial crisis. macroeconomic fundamentals and Shaktikanta Das introduced India’s In particular, structural reforms in the current initiatives to improve the key reform initiatives in recent years welfare system and labor market helped business environment. to stabilize the macroeconomic Germany recover quickly. Minister Taro Aso talked about environment, promote private Minister Jiwei Lou focused on the the progress in various areas of investment, and attract foreign direct People’s Republic of China’s ongoing structural reform under the third arrow investment. efforts to transform the economy and of Abenomics to revive the Japanese ADB President Takehiko Nakao shift the growth model away from heavy economy. commended the accomplishments in reliance on manufacturing exports State Secretary Tone Skogen shared implementing reforms highlighted by and investment toward domestic Norway’s experience in adapting to a new the other panelists and talked about consumption and the services sector. normal where the petroleum industry is a how ADB will continue to support Minister Bambang P.S. Brodjonegoro less prominent growth engine than it has reform efforts in its developing member highlighted the importance of the been and continued efforts in facilitating economies. recent reduction in fuel subsidies female labor force participation.

PANELISTS Taro Aso, Governor for Japan, ADB; Deputy Prime Minister, Minister of Finance, and Minister of State for Financial Services, Japan Bambang P.S. Brodjonegoro, Governor for Indonesia, ADB and Minister of Finance, Indonesia Shaktikanta Das, Alternate Governor for India, ADB and Department of Economic Affairs Secretary, Ministry of Finance, India Jiwei Lou, Governor for the People's Republic of China (PRC), ADB and Minister of Finance, PRC Michael Meister, Parliamentary State Secretary, Federal Ministry of Finance, Germany Takehiko Nakao, President and Chair of the Board of Directors, ADB Tone Skogen, Governor for Norway, ADB and State Secretary, Ministry of Foreign Affairs, Norway

MODERATOR Zeinab Badawi, Journalist, BBC

49TH ANNUAL MEETING OF THE ASIAN DEVELOPMENT BANK 11 ADB SEMINARS AND INSTITUTIONAL EVENTS

Asia–Europe Economic Cooperation: Fostering Greater Trade and Investment

THE PANEL DISCUSSED what limits intellectual property rights, services trade alone, noting projects were needed in interregional trade and investment and better access for small and medium- all participating countries. President between Asia and Europe and how to sized enterprises. Jin reiterated the importance of remove constraints. An audience-participant questioned environmental and social safeguard Vice-President Stephen Groff whether the Asia–Europe trade and standards and the need to cooperate said reducing tariffs was the easy part investment was simply a means of with multilateral development banks like of increasing market access. Now, exporting overproduction of the People’s ADB for cofinancing and risk-sharing. nontariff barriers need to be removed— Republic of China (PRC). Vice-President Vice-President Groff said the enormous given the wide variance in Logistics Groff responded by saying that the infrastructure financing gap necessitated Performance Index scores in Asia. Some ongoing PRC restructuring could cofinancing. He stressed subregional panelists stressed the importance of potentially boost Asia–Europe trade connectivity and its importance in the World Trade Organization (WTO) and investment. Answering an audience project development, and the need for in objectively adjudicating multilateral question whether cultural issues companies to tie into regional value rules irrespective of country size. Several constrained economic relations, panelists chains as well. Other panelists agreed, others cited the stalled Doha Round as from Europe and Minister Mohammad citing the Association of Southeast Asian a reason to pursue interregional trade Ishaq Dar of Pakistan countered that Nations (ASEAN) as an example. agreements. While there is a risk that trade and investment were universally Finally, panelists said that the multiple bilateral trade agreements will profit-driven. promise of interregional digital raise private sector transaction costs, The panel also discussed trade means ICT connectivity and they do not have to disrupt the WTO infrastructure connectivity. President e-commerce offer Europe and Asia process. But they did say new trade Liqun Jin of the Asian Infrastructure abundant opportunities for increasing agreements must be of high quality Investment Bank said the One Belt, future trade and investment. and must address deeper issues like One Road initiative was not the PRC’s

PANELISTS Pierre Amilhat, Director for Asia, Central Asia, Middle East/Gulf and Paciﬁc, Directorate General for International Cooperation and Development, European Commission Mohammad Ishaq Dar, Governor for Pakistan, ADB and Minister for Finance, Revenue, Economic Affairs, Statistics and Privatization, Pakistan Stephen Groff, Vice-President for Operations 2, ADB Liqun Jin, President, Asian Infrastructure Investment Bank Norbert Kloppenburg, Executive Board Member, KfW; Former Senior Vice-President and Head of the Europe and Asia Department, KfW Kae Yanagisawa, Vice-President, Japan International Cooperation Agency

MODERATOR Toby Fildes, Editor, Emerging Markets “...the promise of interregional digital trade means ICT connectivity and e-commerce offer Europe and Asia abundant opportunities for increasing future trade and investment.”

12 ANNUAL MEETING HIGHLIGHTS ADB SEMINARS AND INSTITUTIONAL EVENTS

Quality Employment and a Better Workplace

DESPITE RAPID ECONOMIC panelist noted that 40% of workers in the impact of technological changes on GROWTH and dramatic reductions developing countries are in the informal employment. In doing this, they noted in extreme poverty over the last sector without minimum wages and 30 that a number of mutually reinforcing few decades, there is concern that million workers are in “modern slavery.” approaches have to be undertaken jointly economies in Asia and the Paciﬁc are not The panelist stressed the need to by governments, businesses and labor generating “quality employment.” This monitor core labor standards and ensure unions and civil society organizations: is based on evidence showing steadily the rule of law. monitoring labor market trends and rising income inequality as captured Another view was that needs, wants promoting research and development by household income and expenditure and desires change as incomes rise. It is to reduce demand–supply mismatches, surveys, reductions in the share of important to understand the different enhancing diversity in workforce aggregate value added going to labor, challenges confronted by developing including increasing the share of women, persistence of employment in low-paying and advanced countries. The scale of providing professional development jobs in the informal sector, and weak the challenges faced by developing opportunities to enhance productivity, linkages of labor market regulations and countries is huge. The notion of quality and enhancing transparency and the rule social protection systems with different employment is often understood in a of law in the global value chain. forms of employment. narrow sense in advanced economies, In his keynote, Gerd Müller, although it is being challenged, with the German Federal Minister for Economic emergence of the “uberization” of work. Cooperation and Development, For many developing countries having emphasized the need to ensure “bad” jobs is a better alternative to transparency and the rule of law, and having “no jobs.” Although no consensus ecological and social standards in the emerged on this topic, the discussion global value chain. He noted the need to highlighted the very different types of rethink globalization to ensure fair trade. challenges advanced and developing The panelists discussed how countries face. developing countries can address the The panelists explored how challenges pertaining to environmental governments, businesses and trade standards, social protection and wages unions can promote quality jobs and while maintaining robust growth. One employment, and how they envisage

KEYNOTE SPEAKER Gerd Müller, Federal Minister for Economic Cooperation and Development, Germany “Forty percent of the

PANELISTS workers in developing Sharan Burrow, General Secretary, International Trade Union Confederation Yasushi Kanzaki, Vice-President, Japan International Cooperation Agency countries are in Nandani Lynton, Global Head of Leadership and Excellence, Siemens the informal sector Manish Sabharwal, Co-Founder and Chairman of TeamLease Services Limited, India without minimum MODERATOR Deborah Stokes, Vice-President for Administration and Corporate Management, ADB wages.”

49TH ANNUAL MEETING OF THE ASIAN DEVELOPMENT BANK 13 ADB SEMINARS AND INSTITUTIONAL EVENTS

The Future of Financial Markets: A Changing View of Asia

IN OPENING, European Central Bank provided liquidity, tightening sees capital investor sentiment. Greater homogeneity President Mario Draghi recognized that flow back. Even Asian savings seem between markets with respect to sustained low interest rates put pressure to follow this trend. Central Banks in investment regulations and protections on the financial institution/non-bank Asia have not had to be as aggressive would help projects raise finance. financial institution operating model in lowering rates, so there is still scope Potentially, multilateral development and pensioners, emphasizing that rates for easing. Negativity seen in 2015 was banks have a role in bridging political are a symptom of the underlying cause a result of interest rate hikes in the risk, getting investors more comfortable of insufficient investment demand to developed markets, the possibility of a in a diverse market of very different absorb a global savings surplus. Short- People’s Republic of China hard landing, countries. Micro, small, and medium- term monetary policy tools only steer the commodity price crisis, and currency sized enterprises, a vital economic economies at the margin and are set volatility. Future contagion from global engine, need greater access to finance, low to encourage entrepreneurs to economic shocks cannot be ruled out. and this is something to be focused upon borrow to invest. Fiscal and structural Panelists saw an important role for as Basel III makes it more expensive supply side reforms are needed to central banks in driving domestic policy for commercial banks to lend to this improve productivity from the medium and financial market reform to enable segment. to long term to rebalance savings and a stable and transparent investment Overall, the panel was optimistic investment. environment, promoting local currency that investment flows would return to The panel discussion recognized market development, enabling financial Asia, given the positive fundamental that the rate-setting of institutions services provision to the poor and dynamics, and the potential for yield, such as the Federal Reserve and the unbanked via licensing frameworks, with the region presenting a stronger European Central Bank have a big impact and, if necessary, dampening market growth story than the United States or on investment flows into Asia. Easing volatility, all of which would improve Europe.

OPENING REMARKS © Photothek/BMZ Mario Draghi, President, European Central Bank

PANELISTS Gunit Chadha, CEO Asia Paciﬁc, Deutsche Bank AG Diwakar Gupta, Vice-President for Private Sector and Coﬁnancing Operations, ADB Ravi Karunanayake, Governor for Sri Lanka, ADB and Minister of Finance and Member of Parliament, Sri Lanka Christiane Laibach, Member of the Management Board, Deutsche Investitions und Entwicklungsgesellschaft mbH Marios Maratheftis, Chief Economist, Standard Chartered Bank

MODERATOR Karen Tso, Presenter, CNBC

© Photothek/BMZ © Photothek/BMZ “The panel discussion recognized that the rate setting of institutions such as the Federal Reserve and the European Central Bank have a big impact on investment ﬂows into Asia.”

14 ANNUAL MEETING HIGHLIGHTS ADB SEMINARS AND INSTITUTIONAL EVENTS

Moving Toward Cities of the Future— Delivered, Driven, or Demanded?

MAINTAINING VITAL ECONOMIC The seminar discussed some of development strategy that are clearly GROWTH, while creating livable cities the bold actions cities and metropolises linked with consistent governance, for all is one of the biggest challenges in are taking to prepare for and address enhanced citizen participation, and the Asia and Pacific region. The region’s rapid urbanization; and how they are diverse financing modalities including success in attracting financing to urban weaving the balance between planning, public–private partnerships. Cities that areas for developing inclusive, safe, finance, and infrastructure supply and are experiencing rapid growth require resilient, and sustainable cities holds the demand from all citizens for governance, a paradigm shift in urban management key to continued and shared prosperity. equity, and knowledge. Examples were thinking, with particular emphasis on the The need to strengthen urban resilience given of how Asian and Pacific cities need for more robust environmental and will require knowledge, investment, and are harnessing smart technology, urban physical planning measures in order to collaboration among all development innovation, public communication, and bridge the dichotomy between economic partners, both public and private. knowledge-sharing as keys to short- rationality and social inclusion. Ensuring that citizens are not just one circuiting the development cycle and By working closely together, city of the objects of urban development, providing an enabling environment for administrations, citizens, and businesses but the integral subject, finding shared leveraging economic investment and have the most potential to make a pathways so they can embrace their ensuring social inclusion. city more livable, more smart and own urban complexity and discover The seminar highlighted the sustainable—and become a city ready ways forward, may be the most difficult importance of cities having a long-term for the future. challenge of all. vision and a comprehensive urban

OPENING REMARKS Hans-Joachim Fuchtel, Chair of the Board of Governors and Governor for Germany, ADB; Parliamentary State Secretary, Federal Ministry for Economic Cooperation and Development, Germany

KEYNOTE SPEAKER Pedro Ortiz, former Deputy Mayor and Central District Mayor of Madrid, Spain; former Senior Metropolitan Consultant, the World Bank; and author of The Art of Shaping the Metropolis

PANELISTS Peter Feldmann, Lord Mayor of Frankfurt, Germany Fumiko Hayashi, Mayor of Yokohama, Japan Mochamad Ridwan Kamil, Mayor of Bandung, Indonesia AJM Muzammil, Mayor of Colombo, Sri Lanka Losana Talei Rokotuibau, Director of Town and Country Planning, Fiji Jingjing Xu, International Advisory Group on Green and Smart Urbanization, China Development Bank Capital Corp.

MODERATOR Bambang Susantono, Vice-President for Knowledge Management and Sustainable Development, ADB

49TH ANNUAL MEETING OF THE ASIAN DEVELOPMENT BANK 15 ADB SEMINARS AND INSTITUTIONAL EVENTS

Asia–Europe Macro Links: Opportunities and Spillovers © Photothek/BMZ

GLOBALIZATION has strengthened In a seminar jointly organized with impact of foreign capital movements was the macroeconomic links between Asia the International Monetary Fund, six softened, lessening the detriment to the and Europe, supporting growth on both distinguished panelists discussed how real economy. Regarding the PRC growth sides. Excluding intraregional trade, Asia the benefits of closer macro ties between moderation, economies that can diversify is Europe’s largest export destination and the two regions could be maximized away from capital goods production vice versa. Finance links are also robust while containing potential negative toward serving the rising consumer with European banks still accounting spillovers. Local authorities maintaining market can benefit from that economy’s for 25% of cross-border bank claims in sound macroeconomic policies can put rebalancing. Asia despite the decline following the a country in the best position to buffer In the end, the panel agreed that global financial crisis. Moreover, Europe its economy from external spillovers. the potential boost the regions could is the destination for nearly half of Asia’s International capital flow volatility from, gain from closer ties outweigh the outward foreign direct investment. But for example, adjustments to monetary risks. As President Nakao emphasized, the increased links are not without their policy in the United States and the euro even as growth is moderating in some risks. For example, a sudden shock in area has had an impact on Asia. But with economies, other Asian economies are Europe could spill over to Asia’s financial Asia’s policy makers having generally enjoying continued rapid expansion. And markets, or a moderate growth in the pursued sound fiscal and monetary with a rising Asian middle class, there People’s Republic of China (PRC) could policy as well as allowing greater are continued opportunities to tap from hamper Europe’s fragile recovery. exchange rate flexibility, the domestic closer ties.

PANELISTS Andreas Dombret, Board Member, Bundesbank Mitsuhiro Furusawa, Deputy Managing Director, International Monetary Fund Haihong Gao, Senior Fellow and Head, Department of International Finance, Institute of World Economics and Politics, Chinese Academy of Social Sciences Paul Gruenwald, Managing Director and Chief Economist, Asia-Paciﬁc, Standard & Poor’s Ratings Services Yves Mersch, Member of the Executive Board, European Central Bank Takehiko Nakao, President and Chair of the Board of Directors, ADB

MODERATOR Stefania Palma, Asia Editor, Financial Times’ The Banker magazine Joint seminar with

16 ANNUAL MEETING HIGHLIGHTS ADB SEMINARS AND INSTITUTIONAL EVENTS

Advancing Clean and Climate-Resilient Development in Asia and the Paciﬁc

ASIA IS AT A CROSSROADS: 450 expansion of largely fossil fuel-powered Seminar participants discussed million people still live on less than economies, including in developing how Asia and the Pacific could pursue $1.90 per day and are highly susceptible countries in Asia and the Pacific, which its development goals while taking to economic and environmental are among the most climate vulnerable in action to reduce vulnerability to climate shocks. More than 60% of the region’s the world. change and curbing the growth of carbon population works in agriculture, fisheries, Impacts such as sea-level rise, emissions in line with the objectives of and forestry—the sectors most at risk changes in precipitation patterns, the Paris Agreement on climate and from climate change. On the other hand, and increased strength of windstorms the Intended Nationally Determined developing Asia’s share of worldwide will disproportionally affect tropical Contributions put forward by countries. energy-related carbon dioxide emissions and low-lying countries, which may Given the urgency of shifting more than doubled from 17% in 1990 to threaten development gains and developing Asia and the Pacific onto 37% in 2011. Without aggressive efforts increase migratory pressure in the most a low carbon development path, to make growth less carbon-intensive, vulnerable areas. The presentation participants concluded that there was this will be 46% by 2035, with serious concluded that, given its rapid economic a need for broad coalitions of actors consequences for the global climate. development, the region is a part of the to work together for transformational The opening presentation climate problem, but given the fact that systemic change, beyond individual highlighted the likely impacts of rising most of the needed infrastructure in Asia projects, sectors, or policies which by temperatures and the risk of climate and the Pacific is yet to be built, also part themselves will not generate the needed “tipping points” caused by the continuing of its solution. impact at scale.

PRESENTER Hans Joachim “John” Schellnhuber, Director, Potsdam Institute for Climate Impact Research and Chair, German Advisory Council on Global Change

PANELISTS Preety Bhandari, Director and Technical Advisor, Climate Change and Disaster Risk Management Division, Sustainable Development and Climate Change Department, ADB Romell Cuenca, Deputy Executive Director, Climate Change Office, Climate Change Commission, Philippines Andie Fong Toy, Deputy Secretary General, Economic Governance and Security Programme, Paciﬁc Island Forum Secretariat Naina Lal Kidwai, Chairman, Max Financial Services, India and Commissioner, New Climate Economy Caio Koch-Weser, Vice Chairman, Deutsche Bank; Commissioner, New Climate Economy; and Chair, European Climate Foundation Takehiko Nakao, President and Chair of the Board of Directors, ADB Karsten Sach, Director General, Climate Policy, European and International Policy, Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety, Germany

MODERATOR Yvo de Boer, Director General, Global Green Growth Institute © Photothek/BMZ

49TH ANNUAL MEETING OF THE ASIAN DEVELOPMENT BANK 17 ADB SEMINARS AND INSTITUTIONAL EVENTS

Procurement Opportunities in ADB-Financed Projects

AN INSTITUTIONAL EVENT on for ADB-financed projects, and how business opportunities and the Experts to participate in the newly established Pool was conducted by Ramesh Experts Pool. This event was followed Subramaniam, Director General, up with approximately 40 individual Operations Services and Financial meetings on business opportunities by Management Department (OSFMD); Director General, OSFMD and Director, Toshio Oya, Director General, Budget, OSP2 from 3 to 5 May. Personnel and Management Systems The event was well-received by Department; and Walter Poick, Director, the international as well as the German Procurement Division 2 (OSP2). Over business community. Feedback suggests 120 consultants, contractors, suppliers, that the content and delivery of the and representatives from think-tanks event were found to be useful and and nongovernment organizations and considered practical for consultants and civil society organizations attended. suppliers. Participants noted specifically ADB staff gave an overview on how that the event offered practical advice to identify and pursue ADB business and tips on bidding successfully for opportunities, how to bid successfully ADB-financed projects.

PANELISTS Toshio Oya, Director General, Budget, Personnel and Management Systems Department, ADB Walter Poick, Director, Procurement Division, Operations Services and Financial Management Department, ADB Ramesh Subramaniam, Director General, Operations Services and Financial Management Department, ADB

18 ANNUAL MEETING HIGHLIGHTS ADB SEMINARS AND INSTITUTIONAL EVENTS

Lessons Learned on Implementing ADB’s Accountability Mechanism

THE PANEL DISCUSSION on should fi nd ways to avoid confl ict of measure infl uences or impacts for institutional event entitled “Lessons interest with regard to its counsel. NGOs project-aff ected people. Audience Learned on Implementing ADB’s and CSOs appreciated ADB’s safeguards was informed about the Independent Accountability Mechanism” was and Accountability Mechanism eff orts Accountability Mechanism’s plan for held on 4 May 2016 at the 49th ADB to be transparent and accountable to its an Open Forum with NGOs/CSOs and Annual Meeting in Frankfurt, Germany. stakeholders. Accountability Outreach at ADB in The event was attended by over 80 Focus on people. ADB needs Manila, Philippines, on 6 September participants, including a large number of to improve its formulation and 2016. A meeting to discuss and design nongovernment organizations (NGOs) implementation of remedial actions the agenda for the meeting was and civil society organizations (CSOs). based on the fi ndings of the compliance organized separately. ADB Accountability Mechanism’s review by the Compliance Review Cofi nancing. With new IFIs coming presentation highlighted lessons from Panel (CRP). The CRP reports are with large resources in Asia, cofi nancing previous cases as well as the need for comprehensive but actions are with partners (including the private eff ective partnering with NGOs and delayed. Request was made for ADB sector) with diff erent accountability CSOs. The three key messages from the to implement post action survey and mechanisms and safeguard standards panel highlighted the following: will require greater coordination. ADB Accountability Mechanism. Authored by 11 civil society The importance of the upcoming Room for improvement is documented organizations, this report calls safeguards review in 2017, in light of the in the report “Glass Half Full” that on development banks and the current World Bank review, will require assessed the accountability mechanism governments that run them to transparent and open dialogue with strengthen their systems for providing of 11 international fi nancial institutions remedy to those aff ected by activities NGOs and CSOs. Through community (IFIs). They acknowledged that ADB fi nanced by development banks. consultation and institution-building, has one of the better Accountability Download from: grievancemechanisms.org/ ADB needs to improve project design to Mechanism systems among IFIs. ADB resources/brochures/glass-half-full make development inclusive.

PANELISTS Alfredo Abad, Deputy Head, Complaints Mechanism, European Investment Bank Korinna Horta, Senior Advisor, Urgewald Mario Sander, Executive Director representing Austria, Germany, Luxembourg, Turkey, and the United Kingdom, ADB Jitendra Shah, Special Project Facilitator, ADB

MODERATOR Arntraud Hartmann, Member, Compliance Review Mechanism, ADB

49TH ANNUAL MEETING OF THE ASIAN DEVELOPMENT BANK 19 ADB SEMINARS AND INSTITUTIONAL EVENTS

How Did ADB Perform? The 2015 Scorecard

IN 2008, ADB took the pioneering step The institutional event at the 49th of adopting the fi rst corporate results ADB Annual Meeting presented a The Development Eff ectiveness framework for a multilateral development holistic account of ADB’s performance Review Report tracks development bank. The framework measures ADB’s in 2015. It outlined ADB’s success, progress in Asia and the Pacifi c and monitors ADB’s eff ectiveness. progress toward the goals of its long- highlighted the challenges ADB term strategic framework, Strategy 2020. faces, and described the steps ADB is Since then, ADB has been measuring taking to address the challenges. The its performance each year against the presentation also off ered a glimpse framework’s targets. ADB publishes the into the life-changing experiences of Fourteen stories from across Asia results of this exercise in the annual people across ADB’s developing member and the Pacifi c highlight successful Development Eff ectiveness Review countries brought about by successfully projects that demonstrate (DEfR). Following the midterm review implemented operations, which are development impact, best practices, of its Strategy 2020, ADB updated the showcased in the scorecard’s sister and innovation. results framework in 2014. The 2015 publication, Together We Deliver. Development Eff ectiveness Review is ADB’s Managing Director General ADB’s ninth annual performance report. Juan Miranda moderated the seminar. Download both publications from: adb.org/ It includes a comprehensive scorecard Participants applauded ADB for its documents/series/development-eff ectiveness-review based on 91 results framework indicators. pioneering role in establishing a solid The results framework and DEfR are and innovative system for results major building blocks of ADB’s results management and for its transparent and management system. frank reporting of its performance.

PRESENTER Emma Fan, Head of the Results Management Unit, Strategy and Policy Department, ADB

MODERATOR Juan Miranda, Managing Director General, ADB

20 ANNUAL MEETING HIGHLIGHTS ADB SEMINARS AND INSTITUTIONAL EVENTS

Innovating for Economic and Environmental Sustainability in Asia and the Paciﬁ c

THE PANELISTS at Independent diverse emerging risks undermining represents an immediate and existential Evaluation’s seminar debated what sustainability, such as widening income threat. Governments are increasingly responses are required to respond to inequality, environmental degradation, incorporating disaster preparedness and socioeconomic inequality, the rapid runaway climate change, and climate change adaptation in national pace of urbanization and the critical uncontrolled urbanization. plans, but signifi cant investments are challenges posed by climate change. Lessons from evaluations and needed to turn these good intentions Evolving development context. implications for ADB going forward. To into reality. Following more than 2 decades of sustain progress in Asia and the Pacifi c, The key challenge related to unprecedented growth, governments countries must vigorously promote urbanization will be to embrace across the Asia and Pacifi c region face environmentally sustainable and more innovative approaches to creating the quandary of how to respond to inclusive economic growth. cities that are effi cient, inclusive and A high economic toll is already sustainable. That means cities that make The Annual Evaluation Review being exacted from the rising frequency the best possible use of people, land, and assesses the performance of ADB and ferocity of natural disasters in capital, while providing equal access to operations based on fi ndings of Asia, dangerous levels of air pollution, opportunities and aff ordable services, recent evaluations, and draws out the priorities for ADB in the coming and the degradation of fresh water will result in an urban quality of life years. sources—all interlinked with climate commensurate with the expectations of Download from: change. In particular for the Pacifi c urban dwellers. adb.org/documents/2016-annual-evaluation-review small island states, climate change

PANELISTS Veronika Baumgartner, Alternative Executive Director representing Austria, Germany, Luxembourg, Turkey, and the United Kingdom, ADB Norbert Kloppenburg, Executive Board Member, KfW; Former Senior Vice-President and Head of the Europe and Asia Department, KfW Maaita Toafa, Minister of Finance and Economic Development and Deputy Prime Minister, Tuvalu

MODERATOR Hans van Rijn, Principal Evaluation Specialist, Independent Evaluation Department, ADB

“To sustain progress in Asia and the Paciﬁ c, countries must vigorously promote environmentally sustainable and more inclusive economic growth.”

49TH ANNUAL MEETING OF THE ASIAN DEVELOPMENT BANK 21

Sponsored by

49TH ANNUAL MEETING OF THE ASIAN DEVELOPMENT BANK 31 Host Country Events and Seminars

Germany’s partnerships and perspectives to promote sustainable development.

Germany’s Energy Transition—A Model for Asia?33 “We are convinced that Promoting Renewable Energies in Asia: The Quality competitiveness and Challenge35 sustainability can be reconciled, and that New Asian–European Approaches on Finance and Infrastructure36 they are not mutually exclusive. We believe Empowerment through Technical and Vocational Education and that structural reform for Training: Innovative Financing Approaches37 climate protection will Mobilizing Private Capital for Green Finance in pay off in the long term Asia and in Europe38 and indeed even in the medium term.” Promoting Decent Work in Global Value Chains: Multi-Stakeholder Initiatives and Vision Zero Fund39 —Angela Merkel, Federal Chancellor of Germany

©Photothek/BMZ

32 ANNUAL MEETING HIGHLIGHTS Germany’s Energy Transition—A Model for Asia? Photos ©Photothek/BMZ Hans-Joachim Fuchtel, Chair of the Board of Governors of ADB and Parliamentary State Secretary, German Federal Ministry for Economic Cooperation and Development, highlights the importance of our forests as carbon sinks: “Let’s not forget the role of forests for a sound development, against climate change and for the quality of our environment.”

Photos © Photothek/BMZ

THE PARIS CLIMATE AGREEMENT increase. At the same time, around development and climate agendas more and the UN 2030 Agenda for two billion people worldwide are living tightly—one of the main strategic pillars Sustainable Development lay down the without access to modern energy supply. of ADB. With growing populations and frameworks, targets, and limits for human Providing them with energy is a key economies, the fight against climate development within our planetary prerequisite to global poverty reduction. change will be decided in Asia. That is boundaries. One major challenge is Since the German energy transition why ADB has doubled its climate finance achieving the goal that has been set: a started as early as in 1990, it has often facility. global energy transition. been referred to as a role model. No Mr. Jeffrey D. Sachs, Director of the Firm measures must be taken to other large economy has more expertise Earth Institute at Columbia University reduce global energy consumption and wider experience in this field. But in New York City and Director of the and hold back climate change. But, could it serve as a model for Asia? Sustainable Development Solutions unless our global energy and climate Mr. Gerd Müller, Germany’s Federal Network, reinforced Minister Müller’s policies change, the demand for energy Minister for Economic Cooperation and earlier statements. His key message did will increase by more than half by the Development, made a strong plea that not leave any room for interpretation: year 2030. Developing countries will developing countries should not embark we either need to decarbonize quickly be responsible for almost 90% of this on the same development path as the or we will fail to achieve the two- industrialized countries did 150 years degree target—with unforeseeable, ago. Economic growth based on fossil even catastrophic consequences. Mr. fuels and technologies would, on the Sachs acknowledged the German one hand, guarantee short-term gains “Energiewende,” but emphasized that it and progress but, on the other hand, lock is not free of contradictions. He called developing countries in a sustainability for strategic, long-term energy transition trap. Global decarbonization, therefore, plans in each and every country, and is the only way to develop societies highlighted the key role of engineers sustainably. To this end, new financing to speed up the energy transition schemes need to be developed to worldwide. make use of private capital to a hitherto In the panel discussion that unknown degree. Transparency in the followed, Vice Chancellor Leena finance sector, sustainable investment, Srivastava, The Energy and Resources and technological innovation need to go Institute, was confident that India and hand in hand to achieve the ambitious other Asian countries could benefit from Jeffrey D. Sachs, Director of the Earth Institute goals of Paris and New York, Minister Germany’s experience. But she also drew at Columbia University in New York City and Director of the Sustainable Development Solutions Müller concluded. attention to the completely different Network, warned representatives of governments Asian Development Bank (ADB) position in which India finds itself: 700 at the Host Country Opening that failing to meet President Takehiko Nakao also million Indians are not connected to the two-degree goal would have unforeseen, even highlighted the necessity to merge the the grid—a chance for leapfrogging catastrophic consequences.

49TH ANNUAL MEETING OF THE ASIAN DEVELOPMENT BANK 33 ©Photothek/BMZ HOST COUNTRY EVENTS AND SEMINARS Photos ©Photothek/BMZ

development: “To transform a complex the People’s Republic of China, India, infrastructure while operating it is much Pakistan, and increasingly Japan. more difficult than to leapfrog from Mr. Klaus Milke, Chairman of where we are to where we want to be,” Germanwatch, a nongovernment Srivastava said. organization specialized in climate To provide the business perspective, change, added a civil society perspective hidden champions such as SMA Solar in to the panel discussion. Mr. Milke Kassel and wind power station producer reminded the audience that there is no Nordex joined the discussion. Both one-size-ﬁts-all example which could agreed on the importance of the Asian serve as a blueprint for Asia. Germany market for German green technology. could mainly serve as a laboratory for But they also noted that Asia needs to learning. He argued that Western societies be more ambitious in its green growth have to arrive at the conclusion that their targets than in the past. The potential for model of growth and development has renewable energy is huge in Asia, Ecofys come to an end. A rather sobering view, Dr. Gerd Müller, Federal Minister for Economic CEO Carsten Petersdorff explained. But which gave the ADB community much Cooperation and Development, emphasized that renewable energy systems are mainly food for thought and discussion for the global decarbonization is the only way to develop being exported to four Asian countries: 49th ADB Annual Meeting. societies sustainably.

KEYNOTE SPEAKERS Gerd Müller, Federal Minister for Economic Cooperation and Development, Germany “Transparency Takehiko Nakao, President and Chair of the Board of Directors, ADB Jeffrey Sachs,Economist in the ﬁnancial

PANELISTS sector, sustainable Lars Bondo Krogsgaard, CEO, Nordex Klaus Milke, Chairman, Germanwatch investment, and Carsten Petersdorff, Managing Partner, Ecofys Jürgen Reinert, Chairman, SMA Solar Technology technological Leena Srivastava, Vice Chancellor, The Energy and Resources Institute innovation need to go MODERATOR Dunja Hayali, Journalist, ZDF hand in hand.”

Organized by

34 ANNUAL MEETING HIGHLIGHTS HOST COUNTRY EVENTS AND SEMINARS

Promoting Renewable Energies in Asia: The Quality Challenge

GIVEN THE GROWING DEMAND Photos©PTB for energy on the one hand and the challenges of climate change on the other hand, many Asian economies are supporting the use of renewable energies. To ensure that the required investments are sustainable, adequate technical and institutional capacities for quality assurance are needed. These capacities rely on a set of dedicated institutions such as national metrology institutes, national standards bodies, as well as private or public conformity assessment and accreditation bodies—in short, a national quality infrastructure (NQI). confidence and reducing risks in clean development of quality infrastructure In his welcome address, ADB Vice- energy development. by establishing a “cooperation for President for Knowledge Management The panel—composed of delegates sustainability” involving policy makers, and Sustainable Development Dr. from the finance sector, government the business sector, financial institutions, Bambang Susantono highlighted the fact authorities, and research institutes— and organizations of the quality that the presence of an NQI framework discussed challenges in and approaches infrastructure. Further, it is essential has the benefit of increasing investor to promoting quality in renewable energy to strictly observe quality and safety projects in Asia, with an emphasis on requirements when creating programs for India and Indonesia, as the promotion of public support and funding. renewable energies ranks high on their The panel agreed that (i) awareness political agenda. of the need for quality and safety in The panel highlighted that, in renewable energies is often lacking, and practice, capacities of quality assurance (ii) quality issues are largely caused by are not yet fully established; this may installation errors; they concluded that lead to revenue losses and safety any investment in renewable energies risks, ultimately eroding confidence in should be framed by targeted capacity renewable technologies. building for the NQI institutions in the Consequently, it is becoming sector. increasingly necessary to foster further

OPENING REMARKS Bambang Susantono, Vice-President for Knowledge Management and Sustainable Development, ADB

PANELISTS Francisco Boshell, Analyst, Renewable Energy Technology Markets and Standards, International Renewable Energy Agency Daniel Etschmann, Senior Technical Expert for Solar Energy and Storage Technology, KfW Development Bank Maritje Hutapea, Director of Various New and Renewable Energy, Ministry of Energy and Mineral Resources, Indonesia B.V. Rao, Director (Technical), Indian Renewable Energy Development Agency, India Joachim Ullrich, President, Physikalisch-Technische Bundesanstalt, National Metrology Institute of Germany

MODERATOR Mario Ragwitz, Deputy Head of Competence Center Energy Policy and Energy Markets, Coordinator of Business Unit Renewable Energies, Fraunhofer-Institute for Systems and Innovation Research Organized by “Any investment in renewable energies should be framed by targeted capacity building.”

49TH ANNUAL MEETING OF THE ASIAN DEVELOPMENT BANK 35 HOST COUNTRY EVENTS AND SEMINARS

New Asian–European Approaches on Finance and Infrastructure Photos © Photothek/BMZ

THE ECONOMIES OF ASIA AND emphasized the importance of the in his speech. In light of global climate EUROPE are growing closer together. establishment of the Asian Infrastructure change, it is necessary to create With increasing trade and investment, Investment Bank and its cooperation sustainable and resource-conserving transcontinental transport and with existing development banks in infrastructure. Ms. Cornelia Richter, infrastructure corridors that connect order to make available further financing Managing Director, GIZ, agreed with that Asia and Europe are moving to the for infrastructure investment. Mr. opinion and further added that technical center of economic policy debates. Yongxiang Bu, Deputy Director General, cooperation can make a valuable Policy makers warn that the lack of well- Research Institute, People’s Bank of contribution to creating such sustainable developed infrastructure between Asia China, stressed the special role of infrastructure. and Europe could harm the Eurasian public–private partnerships in financing All in all, the financing infrastructure growth potential. Asian infrastructure projects, whereas investment gap remains an important Against this backdrop, the Mr. Shenglin Ben, Professor of Banking issue in Eurasian economic cooperation. Sino–German Center of Finance and and Finance and Dean of the Academy Finding proper solutions remains a Economics organized a host country of Internet Finance, Zhejiang University, crucial task for Europe and Asia in order seminar featuring high-ranking panelists regarded digital technology as a possible to build a prosperous future and enhance from politics, development and catalyst for enhancing connectivity economic cooperation between the two central banks, as well as academia and between regions and between the continents. development practitioners. Moderated public and private sectors. Mr. Andreas by Mr. Rüdiger von Rosen, panelists Dombret, Board Member, Deutsche looked at the important question Bundesbank, highlighted the importance of suitable financing options for of stable and reliable financial markets in overcoming the existing infrastructure order to attract investors. In this context, investment gap and tapping the potential Europe’s capital markets union could of Eurasian economic cooperation. provide valuable lessons for Asia. Here, Asian Infrastructure State Secretary Friedrich Kitschelt Investment Bank President Liqun Jin included the dimension of sustainability

PANELISTS Shenglin Ben, Professor of Banking and Finance and Dean of the Academy of Internet Finance, Zhejiang University, People’s Republic of China Yongxiang Bu, Deputy Director General, Research Institute, People’s Bank of China Andreas Dombret, Board Member, Deutsche Bundesbank and Co-Chair, SGC Board of Trustees Liqun Jin, President, Asian Infrastructure Investment Bank Friedrich Kitschelt, State Secretary, Federal Ministry for Economic Cooperation and Development, Germany Cornelia Richter, Managing Director, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) Peter Wolff, Head, World Economy and Development Financing, German Development Institute (DIE)

MODERATOR Rüdiger von Rosen, Co-CEO, Sino–German Center of Finance and Economics Organized by

36 ANNUAL MEETING HIGHLIGHTS HOST COUNTRY EVENTS AND SEMINARS

Empowerment through Technical and Vocational Education and Training: Innovative Financing Approaches

GERMANY is increasingly cooperating for growing economies and sustainable use lifelong learning accounts for with its partner countries to promote development. individuals. The Cooperative Training technical and vocational education The panelists outlined the Funds implemented by GIZ in the Lao and training (TVET). TVET provides importance of a regional approach People’s Democratic Republic and Viet young people with essential skills that to TVET and the need for capacity Nam served as examples of how to enhance their employability and access building. They also highlighted the need efficiently involve enterprises in TVET to productive employment and more to approach TVET not only from an planning and delivery, and as examples of income. economic perspective, but also from an alternative to input-based financing. Fragmentation, quality issues, and a social and environmental viewpoints. Overall, seminar participants argued lack of involvement of the private sector The role of the private sector and of a for the introduction of diverse funding are the main challenges that Asia’s TVET labor market-oriented approach was instruments and models. systems are facing. Rapid growth and strongly emphasized. All panelists explicitly welcomed fundamental changes in social structures As one model for more private the signing of the Joint Declaration of require governments to respond and sector involvement, levy-based TVET Intent on TVET as an important step to put in place the right environment financing was presented. This way of toward enhanced cooperation between for labor markets to remain flexible and financing does not push companies to ADB and the BMZ, signaling the joining dynamic. Another challenge lies in a lack engage in TVET provision. The panelists of forces of two strong partners and of financing for TVET systems. Small and also highlighted hybrid approaches that allowing an optimistic outlook on future medium-sized enterprises need more shift from input-oriented financing cooperation between ADB, Germany, access to financing tools to contribute to output-oriented financing. These and countries of the Asia and Pacific to training. At the same time, countries mixed concepts can mobilize stronger region in the field of TVET. are aware that skilled workers are needed private sector involvement and can ©Photothek/BMZ

EXPERT PRESENTATION Gunnar Specht, Managing Partner, Planco Consulting

PANELISTS Christine Heimburger, Manager of the East Asia and Paciﬁc Department, KfW Development Bank Volkmar Klein, Member of Parliament, Germany Ayumi Konishi, Director General, East Asia Regional Department, ADB Shyamal Majumdar, Head of the International Centre for Technical and Vocational Education and Training, UNESCO-UNEVOC Sabine Müller, Director General, Sectoral Department, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)

MODERATOR Natasha Walker, International Facilitation and Communication “Countries are aware that skilled workers are Organized by needed for growing economies and sustainable development.”

49TH ANNUAL MEETING OF THE ASIAN DEVELOPMENT BANK 37 HOST COUNTRY EVENTS AND SEMINARS

Mobilizing Private Capital for Green Finance in Asia and in Europe Photos © Photothek/BMZ

CLIMATE CHANGE threatens the It became clear that development Among other things, panelists lives of millions of people. To limit institutions need to develop strategies highlighted the need for local capital global warming and cope with its to exit from fossil fuels and redirect markets to facilitate solid refinancing effects, massive investment in climate- investment flows toward environment- mechanisms for renewable energy friendly technologies and in enhancing friendly projects, especially investments projects and to further enable innovative resilience against climate risks is needed. made by pension funds, insurance instruments such as green bonds The host country seminar gathered companies, and banks. issued in local currency. Also, strong experts from development banks, To meet the enormous annual cooperation between governments, insurance companies, the civil society, investment needs in Asia, which the private sector, and international and the public sector to explore ways are estimated at $110 billion, one political forums such as the Group of 20 of mobilizing and leveraging private should differentiate between green was identified to be crucial with a view capital for green investment. The panel investments—defined by a standardized to developing effective instruments agreed that the 2030 Agenda and the set of criteria—in the area of energy for risk mitigation and for replicating Paris agreement on climate change with efficiency in small and medium-sized solutions. Good initiatives on these its target of limiting global warming to enterprises and the housing sector, issues are already in place and include less than 2°C provide the world with which will primarily be served by banks in the Emerging Markets Sustainability an excellent framework for economic, the region, and investments in big (public Dialogue, InsuResilience, and the Africa social, and environmental development. and/or private) infrastructure projects. Renewable Energy Initiative.

PANELISTS Eberhard Brandes, Managing Director, WWF Germany Hongjoo Hahm, Deputy Executive Secretary for Programmes, United Nations Economic and Social Commission for Asia and the Paciﬁc Norbert Kloppenburg, Executive Board Member, KfW; Former Senior Vice-President and Head of the Europe and Asia Department, KfW Thomas Silberhorn, Parliamentary State Secretary to the Federal Minister for Economic Cooperation and Development, Germany Marcus Winter, Head of Reinsurance Development, Munich Re

MODERATOR Bambang Susantono, Vice-President for Knowledge Management and Sustainable Development, ADB

Organized by

“Local capital markets need to enable innovative instruments such as green bonds issued in local currency.”

38 ANNUAL MEETING HIGHLIGHTS HOST COUNTRY EVENTS AND SEMINARS

Promoting Decent Work in Global Value Chains: Multi-Stakeholder Initiatives and Vision Zero Fund

GLOBAL VALUE CHAINS open up significant opportunities for emerging and developing countries to be more involved in value creation, thereby boosting their economic growth. Sustainable development requires global production processes to be shaped in a socially and environmentally sustainable manner. To unlock this potential, the Group of 7 (G7) governments have committed to support specific instruments: multi-stakeholder initiatives such as the Partnership for Sustainable Textiles to bring together businesses, “The proactive involvement of businesses unions, nongovernment organizations, and governments. By joining forces, and other stakeholders in these initiatives they create synergies to implement sustainability standards along global is considered essential to achieve area-wide value chains more effectively. In improvements.” producing countries, the new G7 Vision Zero Fund implemented by the these initiatives is considered essential to example, when, by adhering to agreed International Labour Organization achieve area-wide improvements. working hours and implementing offers a concrete tool to improve Panelists unanimously identified occupational health and safety workplace safety and health, both in local one persistent challenge—the need for a standards, they can reduce sick leave or companies and in public practice. level playing field, demanding the same staff turnover. The seminar focused on the requirements from all businesses within As regards the sectors and countries added value of instruments such as the a certain sector. As long as businesses to be focused on, panelists highlighted Partnership for Sustainable Textiles and can compete based on social and the challenges in the textile sector and, in the Vision Zero Fund when it comes environmental dumping, improvements particular, discussed how to strengthen to improving social and environmental in working, living, and environmental sustainability standards through multi- conditions in global value chains. In their conditions in producing countries stakeholder approaches in Bangladesh, discussions, panelists highlighted the will hardly be achieved. At the same Pakistan, and Myanmar. The panelists influence of diverse stakeholder groups. time, some panelists emphasized that concluded by stressing the importance The proactive involvement of suppliers also benefit from compliance of concerted efforts and complementary businesses and other stakeholders in with sustainability standards, for measures in producing countries.

PANELISTS K. M. David Hasanat, Chairman and CEO, Viyellatex Group Susanne Hoffmann, Director-General, European and International Labour and Social Policies Gilbert Houngbo, Deputy Director General, International Labour Organization Thomas Silberhorn, Parliamentary State Secretary to the Federal Minister for Economic Cooperation and Development, Germany Marc Sommer, Member of Board, Hess Natur-Textilien GmbH Christopher Stephens, General Counsel, ADB

MODERATOR Conny Czymoch, Independent International Moderator

Organized by

49TH ANNUAL MEETING OF THE ASIAN DEVELOPMENT BANK 39 40 ANNUAL MEETING HIGHLIGHTS Civil Society Program

Civil society organizations come together for dialogue, knowledge-sharing, and networking.

Meeting between Civil Society Organizations and ADB Management42

Civil Society Panel: Institutional Reforms to Improve Implementation of ADB’s Safeguards Policy (with NGO Forum on ADB)43

Civil Society Panel: A Grassroots Perspective on Integrating Core Labor Standards in ADB (with NGO Forum on ADB and Public Services International)44

Civil Society Panel: Infrastructure-Driven Growth Model of Multilateral Development Banks in the Context of Planetary Limits (with NGO Forum on ADB and Oxfam)45

Learning with Partners: Space for Civil Society Engagement in the Implementation of Sustainable Development Goals: Will It Shrink or Expand? (with Partnership for Transparency Fund)46

Learning with Partners: Youth for Global Goals: Mobilizing Youth to Contribute to Achieving the Sustainable Development Goals (with AIESEC)47

Learning with Partners: Safeguarding Climate Change Finance in Asia and the Paciﬁc (with Transparency International)48

Civil Society Partnership Award49

49TH ANNUAL MEETING OF THE ASIAN DEVELOPMENT BANK 41 CIVIL SOCIETY EVENTS

CLOSE TO 300 civil society important development issues. There The program included discussions representatives participated, coming were two types of events under this on core labor standards in ADB from 16 ADB members, and representing program, namely the Civil Society operations, infrastructure financing, 65 civil society organizations (CSOs) Panel Discussions and Learning with safeguards, climate change finance, and nongovernment organizations. Of Partners. The first focused on subjects shrinking civil society space, and the the total attendees, 181 were present in related to ADB programs and policies, role of the youth in achieving the Frankfurt, while the remaining joined and also served as a venue for dialogue Sustainable Development Goals. In in through livestreaming. From the 181 about important civil society concerns. general, civil society attendees found who attended the meeting face-to-face, Learning with Partners featured sessions the meetings to be relevant and 59 (33%) were from CSOs based in the which aimed to share knowledge and useful and recommended continuous host country, Germany. A total of 55 experience about topics of relevance to communication, information-sharing, participants, or 30%, were based in ADB the civil society and other development and consultation with ADB. members from Asia and the Pacific. actors. The Civil Society Program was This year’s Civil Society Program organized in cooperation with key CSOs featured seven events focusing on in the region.

Meeting between Civil Society Organizations and ADB Management

THE CIVIL SOCIETY PROGRAM commenced with the yearly meeting “President Nakao underscored the between CSOs and ADB President Takehiko Nakao, which took place important role of civil society in ADB on 2 May 2016. The ADB President programs and services, and addressed underscored the important role of the civil society in ADB programs and concerns raised by CSO representatives.” services, and addressed concerns raised by CSO representatives during the question-and-answer portion. The 1-hour meeting also mentioned some of ADB’s innovative and productive activities such as quick responses to natural disasters during the Nepal earthquake, Cyclone Pam in Vanuatu, and Tropical Cyclone Winston in Fiji. The important role of CSOs in disaster response and relief was highlighted during the meeting. Partnership, which supports member corruption, and harness information The dialogue also cited ADB’s countries and CSOs to empower and communication technologies to membership to the Open Government citizens to promote transparency, ﬁght strengthen governance.

42 ANNUAL MEETING HIGHLIGHTS Institutional Reforms to Improve Implementation of ADB’s Safeguards Policy Civil Society Panel (with NGO Forum on ADB)

IN VIEW of the Safeguards Operational the due diligence mechanism to ensure their effective implementation and Review undertaken by ADB’s full compliance with ADB’s safeguard enforcement. The panel recommends Independent Evaluation Department requirements. The presentation of case more support to ADB members to in 2014, the session explored the studies from selected countries was strengthen their understanding and strict institutional reforms that have been shared by panel speakers. compliance to safeguards standards. undertaken by ADB to address the The discussions demonstrated Specifically, ADB can promote the gaps identified in the evaluation report. recognition of ADB’s leadership in the establishment of legal and administrative Organized with the NGO Forum on development of its environmental and frameworks for implementing country ADB, the discussions focused on some social safeguard policies. However, safeguards systems, which are aligned to of the merits as well as weaknesses of there were issues identified to ensure international standards.

PANELISTS Nessim Ahmad, Deputy Director General, Sustainable Development and Climate Change Department and Concurrently Chief Compliance Officer, ADB Ratan Bhandari, Water Resources Activist, Nepal Titi Soentoro, Policy Advisor for Gender, Social, and Ecological Justice, Aksi! Indonesia Eang Vuthy, Executive Director, Equitable Cambodia Hemantha Withanage, Executive Director, Centre for Environmental Justice, Sri Lanka

49TH ANNUAL MEETING OF THE ASIAN DEVELOPMENT BANK 43 A Grassroots Perspective on Integrating Core Labor Standards in ADB Civil Society Panel (with NGO Forum on ADB and Public Services International)

QUALITY EMPLOYMENT is a key led the discussion using selected challenge. Speakers also noted that component of ADB’s strategy to country cases. monitoring ADB projects with regard promote inclusive growth. Adherence to The CLS is grounded on the right to compliance to the CLS remains a the International Labour Organization’s to nondiscrimination, right to organize, challenge as well. Core Labor Standards (CLS) in ADB’s and a society with no child labor and Panelists recommended for ADB lending operation is crucial to attaining forced labor. The panel underscored the to work more closely with governments this goal. need to protect and respect these rights to ensure strict compliance to CLS in Organized by the NGO Forum as a prerequisite to achieving positive ADB-supported activities. Mechanisms on ADB, and the Public Service development impact. Institutions like for monitoring compliance include International, the session highlighted ADB should be able to comply with establishment of grievance mechanisms, the importance of faithfully integrating these standards; making them part of and setting up of an independent third CLS across ADB operations. Speakers the day-to-day operation remains the monitoring party, among others.

PANELISTS Claude Akpokavie, Senior Adviser, Bureau for Workers Activities, International Labour Organization Martin Beckmann, Policy Officer, Service-, Regional- and Structural Policy, Policy and Planning Unit, ver.di Matt Fischer-Daly, Coordinator of the Cotton Campaign, International Labor Rights Forum Souparna Lahiri, Advocate for Environment, Forests, Tribal Rights, Workers’ Rights, Climate Change, and Development Finance Mario Sander, Executive Director representing Austria, Germany, Luxembourg, Turkey, and the United Kingdom, ADB

MODERATOR Rayyan Hassan, Executive Director, NGO Forum on ADB

“The Core Labor Standards is grounded on the right to non-discrimination, right to organize, and a society with no child labor and forced labor. The panel underscored the need to protect and respect these rights as a prerequisite to achieving positive development impact.”

44 ANNUAL MEETING HIGHLIGHTS Infrastructure-Driven Growth Model of Multilateral Development Banks in the Context of Planetary Limits

Civil Society Panel (with NGO Forum on ADB and Oxfam)

INVESTMENT in infrastructure people on the ground. It was organized improve its safeguards and framework, has reached a new global peak as in cooperation with the NGO Forum on and sharpen instruments in measuring development models of multilateral ADB and Oxfam. impact. The panel also noted the need to development banks tend to rely heavily The session noted that address issues in relation to inadequate on infrastructure as the engine of growth. infrastructure projects should be seen consultation, lack of transparent public The panel discussed challenges through the lens of a wider development disclosure, and the decreasing space for and consequences of implementing framework, which includes the principles civil society organizations to be engaged. large-scale infrastructure, particularly on of inclusive growth, sustainable growth, Marginalization of women brought about people and livelihood and environment. and cross-regional cooperation. As by the proliferation of infrastructure It aimed to examine the adequacy of borrowing countries continue to request projects should also be overcome. the borrower systems for safeguards to for infrastructure funding, multilateral protect the existing vulnerability of the ﬁnance institutions like ADB need to

PANELISTS Mae Buenaventura, Asian Peoples Movement on Debt and Development Stephanie Fried, Ulu Foundation Kate Geary, Oxfam Rayyan Hassan, Executive Director, NGO Forum on ADB Jan Willem van den Wall Bake, Alternate Executive Director representing Canada, “Infrastructure Denmark, Finland, Ireland, The Netherlands, Norway, and Sweden, ADB Knud Vocking, Urgewald projects should be seen MODERATOR through the lens of a Jessica Rosien, Oxfam wider development framework, which includes the principles of inclusive growth, sustainable growth, and cross-regional

49TH ANNUAL MEETING OF THE ASIAN DEVELOPMENT BANK 45 Space for Civil Society Engagement in the Implementation of Sustainable Development Goals: Will It Shrink or Expand?

Learning with Partners (with Partnership for Transparency Fund)

THE SUSTAINABLE DEVELOPMENT CSOs call upon collective action “While the GOALS (SDGs), or the 2030 Agenda, to address these challenges. For call for a paradigm shift geared example, coalitions and the setting up Sustainable toward greater partnership between of a common platform for engagement the civil society, government, and the have been effective in engaging with Development Goals private sector. The civil society will government and other stakeholders. be a crucial player in the achievement The civil society also needs to learn from opened doors for of the SDGs which multilateral collaboration strategies that have worked institutions like ADB have committed to well. Examples of effective collaboration collaboration, civil support. may come from Open Government society organizations Organized by the Partnership Partnership member countries. for Transparency Fund, the session The session recognized efforts by currently operate recognized that, while the SDGs ADB to embrace the voice of the civil opened doors for collaboration, civil society by providing space for CSO under some society organizations (CSOs) currently consultations, and introducing changes in operate under some challenging its business operations to work with CSOs challenging situations situations which restrict their work. more efficiently. It also underscored These include legal and regulatory the role of ADB in helping governments which restrict their restrictions by some governments, collaborate with the civil society limited funding, and CSOs not being particularly in countries with restrictive work.” treated as equal and independent environment for CSO cooperation. partners.

PANELISTS John Clark, Member, Advisory Council of International Center on Not for Proﬁt Law; Research Associate, Overseas Development Institute; and Chair of the Board, Partnership for Transparency Fund Bart Édes, Director, Social Development, Governance, and Gender Division, Sustainable Development and Climate Change Department, ADB Giorgi Kldiashvili, Director, Institute for Development of Freedom of Information, Georgia Agnieszka Kroskowska, Gender Focal Person and Myanmar Country Representative, Helvetas Anselmo Lee, Board Member, CIVICUS and Secretary General, Asia Democracy Network Suzanne Siskel, Executive Vice-President and Chief Operating Officer, Asia Foundation

MODERATOR Vinay Bhargava, Chief Technical Adviser, Partnership for Transparency Fund

46 ANNUAL MEETING HIGHLIGHTS Youth for Global Goals: Mobilizing Youth to Contribute to Achieving the Sustainable Development Goals

Learning with Partners (with AIESEC)

THE SUSTAINABLE DEVELOPMENT and engaging young people are critical in SDGs. Organized in cooperation with a GOALS (SDGs) have opened the door helping achieve the global goals. youth organization, AIESEC, the learning for more collaboration and engagement The Global YouthSpeak 2015 Report session recommends that governments by all, including children and young was launched during the meeting, which invest more in the youth agenda and people who make up a big percentage highlights what young people care about open up space to engage young people of the population of the Asia and Paciﬁ c and how they see the world changing productively in creating a better society. region. over the next 15 years. It proposes a The event was livestreamed to over The youth are both road map to create opportunities for 120 youth participants in 15 ADB resident underrepresented and untapped young people to volunteer and create mission offi ces in Asia and the Paciﬁ c. members of the civil society. Working social impact projects in support of the

PANELISTS Satinder Bindra, Principal Director, Department of External Relations, ADB Hongjoo Hahm, Deputy Executive Secretary for Programmes, United Nations Economic and Social Commission for Asia and the Paciﬁ c Maike Röttger, National Director, Plan International Germany Ana Saldarriaga, Global President, AIESEC

MODERATOR Sergio Fernández de Córdova, Chairman, PVBLIC

“The youth are both underrepresented and untapped members of the civil society. Working and engaging young people are critical in helping achieve global goals.”

In this comprehensive report, 160,292 young people voiced their opinion and gave insight on how to engage Millennials to take actions for a better world. Download from: aiesec.org/youthspeak

49TH ANNUAL MEETING OF THE ASIAN DEVELOPMENT BANK 47 Safeguarding Climate Change Finance in Asia and the Paciﬁc

Learning with Partners (with Transparency International)

COUNTRIES IN ASIA AND THE PACIFIC, and the poorest of the poor, “With enormous investments in climate are among the most vulnerable to the impacts of climate change. Scarce change, there are new channels, new ways of resources must be managed effectively to enable affected communities to adapt, doing things, and therefore new and additional mitigate, and recover from the worst effects of climate change in the region. risks come to play.” The panel, through various country cases, discussed the challenges and Regulations should be in place to about the limited space for CSOs to solutions to effective governance, and encourage safeguarding climate change undertake a more active role in ensuring focused on the role of the civil society in and reducing vulnerabilities. While transparency and safeguard compliance. ensuring accountability in accessing and the standards exist, implementation For its part, ADB is committed to utilizing global and local climate ﬁnance. continues to be a challenge. combating corruption and improving With enormous investments Organized by Transparency governance through its Office of in climate change, there are new International, the learning session Anticorruption and Integrity. Its mandate channels, new ways of doing things, noted that civil society can contribute is underpinned by ADB’s zero tolerance and therefore new and additional risks immensely to safeguarding transparency for corruption. come to play. Transparency standards in climate change ﬁnance. However, have become much more important. there are concerns in some countries

PANELISTS Bart Édes, Director, Social Development, Governance, and Gender Division, Sustainable Development and Climate Change Department, ADB Sumaiya Khair, Deputy Executive Director, Transparency International Bangladesh Anju Sharma, Director and Company Secretary, Oxford Climate Policy Ian Tellam, Senior Consultant, Adaptify

MODERATOR Rukshana Nanayakkara, Regional Outreach and Advocacy Manager, Transparency International

48 ANNUAL MEETING HIGHLIGHTS Civil Society Partnership Award

AS A PILOT INITIATIVE in this year’s Civil Society Program, ADB’s NGO and Civil “The first Civil Society Center launched the Civil Society Partnership Award, a competition which aims to recognize a civil society organization which demonstrates collaboration and Society Partnership partnership with other development actors in the context of an ADB-supported project. The winning organization should demonstrate the important role of the civil Award was given society in contributing to better development results, through partnerships which are to VisionFund able to • help incorporate the voice of the poor and the marginalized into the project, International, in • enhance project impact through combined and more efficient use of resources, and recognition of the • promote innovation and sustainability. development of an The first Civil Society Partnership Award was given to VisionFund International, in recognition of the development of an innovative Asian Region Disaster Insurance innovative Asian Scheme (ARDIS). The project is a regional index-based or “parametric” insurance scheme directed toward providing a viable financial safety net to enhance disaster Region Disaster risk resiliency in poor communities. Supported by ADB’s Integrated Disaster Risk Management Fund, ARDIS cooperates with other nongovernment organizations and Insurance Scheme.” works closely with technical experts, industry players, and government regulators in designing the project framework. Bambang Susantono, ADB Vice-President for Knowledge Management and Sustainable Development, conferred the award on 4 May 2016. “We are delighted to receive this award, especially as it is a recognition of the importance of preparation before a disaster for financial resilience and rapid economic recovery,” says Michael Kellogg, Typhoon Haiyan Response Director of VisionFund International.

49TH ANNUAL MEETING OF THE ASIAN DEVELOPMENT BANK 49 Special Features

©Photothek/BMZ

CNBC Debate Asia’s Economic Outlook: 60% and Counting51

Making Sustainability Work Knowledge Exchange at the “City of Sustainability”53

The 49th ADB Annual Meeting in Germany: A Sustainable Event57

50 ANNUAL MEETING HIGHLIGHTS CNBC Debate Asia’s Economic Outlook: 60% and Counting

THE CNBC DEBATE entitled Asia’s including decoupling economic growth Asia’s 4.4 billion people and their position Economic Outlook: 60% and Counting and regional cooperation. on the global stage. featured a high-level panel comprised The debate was a rare opportunity The program was aired 10 times of India Finance Minister and ADB to get together ADB Governors for to a potential audience of 145 million Governor Arun Jaitley, Indonesia Finance India and Pakistan to discuss financial, households, including 4.6 million opinion Minister and ADB Governor Bambang economic, and development issues leaders, financial decision makers, and P.S. Brodjonegoro, Pakistan Finance affecting Asia along with other panelists. investors in CNBC’s broadcast feeds in Minister and ADB Governor Mohammad The five-member panel looked into the Europe as well as Asia, Pacific, Australia, Ishaq Dar, ADB President Takehiko future to debate what Asia’s economy and New Zealand. Nakao, and Commerzbank Regional will be like in 5 years. They discussed CNBC also interviewed on live Head Agnes Vargas. CNBC anchor Karen whether Asia will continue to power 60% television other finance ministers and Tso moderated the 1-hour discussion of global growth, and how the region’s other delegates during the ADB Annual that covered a wide range of issues, economic transformation will affect Meeting.

PANELISTS Bambang P.S. Brodjonegoro, Governor for Indonesia, ADB and Minister of Finance, Indonesia Mohammad Ishaq Dar, Governor for Pakistan, ADB and Minister for Finance, Revenue, Economic Affairs, Statistics and Privatization, Pakistan Arun Jaitley, Governor for India, ADB and Minister of Finance, India Takehiko Nakao, President and Chair of the Board of Directors, ADB Agnes Vargas, Regional Head for Greater China and ASEAN, Commerzbank AG

MODERATOR Karen Tso, Presenter, CNBC Media partner

49TH ANNUAL MEETING OF THE ASIAN DEVELOPMENT BANK 51 52 ANNUAL MEETING HIGHLIGHTS ©Photothek/BMZ Making Sustainability Work Key Topics of Knowledge Exchange at the “City of the City of Sustainability • Combating Climate Change and Its Sustainability” Impact • Supporting Sustainable Energy for HOW CAN WE BRIDGE the urban infrastructure investment gap in Asia? Which Development German–Asian approaches and partnerships have been successful in training skilled workers who are able to satisfy market needs? How can we design strategic solutions • Strengthening Technical and for energy problems that will only emerge in the next few decades? Vocational Education and Training These and other pressing issues for sustainable development in Asia were the • Promoting Sustainable subject of discussions and exhibitions in the “City of Sustainability.” With this new Consumption and Production host country format for networking and exchange, Germany aimed to bring the motto Patterns of the 49th ADB Annual Meeting “Cooperating for Sustainability” to life and to put a • Contributing to Sustainable Urban focus on the implementation of the Sustainable Development Goals. Development Events on the “City of Sustainability” stage highlighted different topics each day and were organized by a wide range of stakeholders from business, politics, the civil • Municipal Partnership and Twinning society, science, and research. This was also an opportunity to further illustrate the Programs key topics of the meeting and to intensify discussions among the participants. • Financing Sustainable Development

49TH ANNUAL MEETING OF THE ASIAN DEVELOPMENT©Photothek/BMZ BANK 53 A cooling system designed by the Fraunhofer Research Institute is fueled with biogas from food waste.

At the center of attention on Together with Mr. Mochamad The focus of Tuesday, 3 May, was Monday, 2 May, were municipal Ridwan Kamil, Mayor of the City of strengthening technical and vocational partnerships and sustainable urban Bandung in Indonesia, he discussed education and training (TVET). Germany development. As a ﬁrst highlight, the the contribution of cities to a global has a long history of experience with “City of Sustainability” was opened on energy transition as well as the role of practice-oriented education, and Monday, 2 May, by the Chair of the ADB smart solutions. Mayor Kamil was also has increased its efforts to promote Annual Meeting and German Governor the ﬁrst to sign his name in the “Golden development cooperation on TVET Hans-Joachim Fuchtel together with Mr. Book” of the “City of Sustainability.” in Asia in recent years. On the “City of Peter Feldmann, the Mayor of Frankfurt. Subsequent events featured municipal Sustainability” stage, new approaches Mr. Feldmann, freshly appointed partnerships and peer-to-peer learning were presented, together with examples Mayor of the “City of Sustainability,” in common projects between cities for integrating academic studies and emphasized the challenges cities all worldwide and the interplay of the workplace training in Mongolia and Viet over the world are facing in times of different administrative levels in the Nam as well as for a partnership between rapid urbanization and technological implementation of the global 2030 the German automobile company development. Agenda. Porsche and the NGO Don Bosco Photos © Photothek/BMZ ADB Governor for Germany Hans-Joachim Fuchtel Peter Feldmann, Lord Mayor of the City of Mochamad Ridwan Kamil, Mayor of Bandung, opens the City of Sustainability. Frankfurt am Main, receives the keys of the “City Indonesia, signs the “Golden Book.” of Sustainability” with key rings symbolizing the Sustainable Development Goals.

54 ANNUAL MEETING HIGHLIGHTS Art for Change: Dr. Thomas Silberhorn, ADB President Takehiko Nakao and German Bicycle-powered milkshakes and tons of ideas and Parliamentary State Secretary to the Development Federal Minister for Economic Cooperation and information at the City booths. Minister, together with “Socialplastics” Development Gerd Müller making their mark during artist Gerhard Bär, who raised awareness for their tour through the City. environmental issues.

Mondo, a nongovernment organization the extreme rates of deforestation for institutes—presented German expertise, (NGO), to train mechatronics engineers the purpose of commodity production in innovative solutions, and successful according to market needs in the Southeast Asia and discussed the role of partnerships. Philippines. the ﬁnance sector in contributing to the Among the high-ranking Sustainable global supply chains implementation of deforestation-free participants who visited the “City of were at the heart of the “City of supply chains. Sustainability” was German Chancellor Sustainability” stage program on “Cooperating for Sustainability” Dr. Angela Merkel, who stopped at the Wednesday, 4 May. The role of resource- also became an off-stage experience. booth of Fairtrade, an NGO, to talk about saving potentials in the Asian textile Twenty eight exhibitors—among sustainable supply chains in the textile sector was discussed in a contribution by them nongovernment organizations, sector. PUMA, while WWF Germany highlighted FinTech companies, and research Photos © Photothek/BMZ German Development Minister Gerd Müller in a gyrocopter, developed for precision farming or detecting old landmines, while Governor Hans-Joachim Fuchtel and ADB President Takehiko Nakao look on.

49TH ANNUAL MEETING OF THE ASIAN DEVELOPMENT BANK 55 City of Sustainability Exhibitors and Partners

• Agency for Business and Economic • Fairtrade Network of Asian and Paciﬁc • Institute of Environmental Engineering Development Producers (NAPP) & Management, University Witten/ • Bankenverband Hessen • Federal Ministry for Economic Affairs Herdecke • Bettervest and Energy (BMWI) • INWASOL GmbH • Bitbond • Federal Ministry for Economic • Johns Hopkins University, Hopkins- • BJP India Cooperation and Development (BMZ) Nanjing Center, Nanjing University, • Borda (Bremen Overseas Research & • Federal Ministry for the Environment, People’s Republic of China Development Association) Nature Conservation, Building and • KfW • Brot für die Welt Nuclear Safety (BMUB) • Konrad-Adenauer-Stiftung (KAS) • Center for Macroeconomic Research, • Federal Ministry of Finance (BMF) • Kuhn GmBH Kazakhstan • Forschungszentrum Jülich • Metropolitan Region • Centre for European Policy Studies • Frankfurt Main Finance FrankfurtRheinMain (CEPS) • Frankfurt School - UNEP Collaborating • Ministry of Economics, Energy, • China Development Bank Capital Corp. Centre for Climate & Sustainable Energy Transport and Regional Development, • China Europe International Exchange Finance State of Hesse AG (CEINEX) • Frankfurt School of Finance and • Ministry of Local Government, Housing • Cities Development Initiative for Asia Management and Environment, Fiji (CDIA) • Fraunhofer • Monetas • City of Bandung, Indonesia • Fraunhofer FIT • People's Bank of China (PBOC), • City of Colombo, Sri Lanka • Fraunhofer IAO Research Bureau • City of Dresden • Fraunhofer ISE • Plan International • City of Frankfurt • Fraunhofer UMSICHT • Porsche AG • City of Leipzig • German Academic Exchange Service • PUMA • Clark (DAAD) • PwC • Connective Cities • German Office for International • REDO Water Systems GmbH • Crawford School of Public Policy, Cooperation in Vocational Education • Securities & Exchange Board of India Australian National University, Canberra and Training (GOVET) (SEBI) • DEG • German Water Partnership (GWP) • Service Agency Communities in One • Deutsche Asset Management • German-Mongolian Institute for World (SKEW) • Deutsche Bank AG Resources and Technology (GMIT) • State Secretariat for Economic Affairs • Deutsche Gesellschaft für Internationale • German-Philippine Chamber of (SECO), Switzerland Zusammenarbeit (GIZ) GmbH Commerce and Industry, Inc. (GPCCI / • Technical University Berlin • Deutscher Städtetag AHK Philippinen) • The Energy and Resources Institute • Don Bosco Mondo e.V. • Grasshopper Investments GmbH (TERI), India • DZ Bank • Handicap International • Transfair/Fairtrade • Economic Research Institute for ASEAN • ICLEI - Local Governments for • Veridos a company of Bundesdruckerei and East Asia (ERIA) Sustainability and Giesecke & Devrient • Ed. Züblin AG • Import Promotion Desk and Sequa • Vietnamese-German University • Embassy of the Republic of Iraq to • Indo-German Alliance for Water • WebID Solutions Germany Efficiency (IGAWE) • WILO Financial Services GmbH • Engagement Global • Institute for International Monetary • Wilo SE • Fairtrade International Affairs (IIMA), Japan • WWF Germany

56 ANNUAL MEETING HIGHLIGHTS The 49th ADB Annual Meeting in Germany: A Sustainable Event

What We Did

• Made the event carbon-neutral by compensating all unavoidable carbon emissions • Initiated a tree-planting event to leave a “green” legacy • Reduced the number of vehicles by introducing a car-pooling solution for high-level guests • Used low-emission hybrid vehicles • Provided free tickets for public transport on every badge instead of providing shuttle buses within Frankfurt • Reduced the number of printed publications. • Used 100% recycled paper for all necessary Annual Meeting documents THE FIRST EVER ADB Annual Meeting All emissions that could not be • Provided regional and seasonal in Germany was certified (ISO 20121) as a avoided will be compensated by ADB food and serving fair-trade tea sustainable and carbon-neutral event. and BMZ. The emission allowances and coffee during the sessions ADB and the Federal Ministry will promote renewable energies by • Recycled consumables and for Economic Cooperation and supporting the Tata Khandke Wind registration badges Development (BMZ) reduced carbon Project in India. • Used 100% green electricity at dioxide emissions wherever possible The ADB Annual Meeting the Messe venue by seeking out sustainable solutions in Germany will leave its mark on for transport and catering, and finding Frankfurt’s cityscape. As a strong and ways to reduce or reuse the material long-lasting symbol of sustainability for needed. future generations, ADB and Germany This means that the City of planted the first Green Lecture Hall at Sustainability” will come alive again: the Frankfurt Goethe University, on 30 the maritime pine used in all the April. Over time, the trees will grow and constructions will be reused as the floor form an innovative living construction of a cultural center in Mestlin, a small that can be used for seminars and town in Mecklenburg-Vorpommern, conferences by roughly 50 students. in northern Germany. Other materials The BMZ was the initiator of this green such as badge lanyards will be reused venue as a creative place for discussions, for subsequent ADB Annual Meetings. including an annual exchange of ideas Additionally, 100% green electricity, between the BMZ and students about an environment-friendly mobility sustainable development. concept and giving preference to Germany’s track record of carbon- regional products all helped to make it a neutral events includes the 2006 Football sustainable event. World Cup and the G7 summit at Elmau. "With the Green Lecture Hall, we are planting ideas for the future, quite literally." —Hans-Joachim Fuchtel, Chair of the Board of Governors and Governor for Germany, ADB; Parliamentary State Secretary, Federal Ministry for Economic Cooperation and Development, Germany Photos © Photothek/BMZ

49TH ANNUAL MEETING OF THE ASIAN DEVELOPMENT BANK 57 About the Annual Meetings of the Asian Development Bank Board of Governors

The Annual Meeting of the ADB Board of Governors is an opportunity to provide guidance on ADB administrative, ﬁnancial, and operational directions. The meetings provide opportunities for member governments to interact with ADB staff; nongovernment organizations; media; and representatives of observer countries, international organizations, academe, and the private sector. ADB’s annual meetings have become a premier forum for the discussion of economic and social development issues in Asia and the Paciﬁc. In 2016, the ADB Annual Meeting was held in Frankfurt, Germany.

About the Asian Development Bank

ADB’s vision is an Asia and Paciﬁc region free of poverty. Its mission is to help its developing member countries reduce poverty and improve the quality of life of their people. Despite the region’s many successes, it remains home to half of the world’s extreme poor. ADB is committed to reducing poverty through inclusive economic growth, environmentally sustainable growth, and regional integration.

Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance.