US Official Explains 4 Asian Countries Now on the Brink of Crisis, Is There RI?

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ADB Annual Meeting

MAIKEL JEFRIANDO, CNBC Indonesia

News

Sunday, 05/05/2024 16:30 IWST

Photo: Minister of Finance Sri Mulyani Indrawati speaking at the 57th Asian Development Bank (ADB) Annual Meeting in Tbilisi, Georgia, Sunday (5/5/2024). (CNBC Indonesia/Maikel Jefriando)

Tbilisi, CNBC Indonesia – The United States (US) government sees that the economic recovery in Asia Pacific after the Covid-19 pandemic has not been evenly distributed. At least four countries are still in a deteriorating situation, namely Pakistan, Sri Lanka, Maldives and Laos.

“Reforms are needed in these countries,” said US Assistant Secretary of Finance Alexia Latortue at the 57th Asian Development Bank (ADB) Annual Meeting in Tbilisi, Georgia, Sunday (5/5/2024).

According to Latortue, the Asia Pacific region as a whole looks good with relatively strong and resilient growth. However, there are still several countries experiencing decline due to external and internal factors.

This is inseparable from the impact of four crises that have occurred simultaneously in recent times. These are climate change, conflict, food insecurity and increasing debt.

“More broadly, the region faces risks, including tighter global financial conditions, slowing domestic demand in China and high debt levels,” he explained.

According to Latortue, ADB can play a role so that countries that have fallen into the brink of crisis can recover. Meanwhile, countries that are now capable of positive growth can maintain momentum.

“As countries seek to maintain growth momentum

and manage these risks, they will continue to rely on international financial institutions such as the ADB,” he explained.

There are four things that ADB needs to do, namely first providing high-quality development funding services, including climate funding. Second, mobilize additional funds, including managing domestic resources and enabling investment by the private sector. Third, gathering the roles of stakeholders and fourth, functioning as a reference in the region.

“This agenda is far from over. Urgent challenges such as climate change, conflict and fragility, and the pandemic threaten hard-won development progress, and we urge a continued commitment to reform,” he concluded.

(luc/luc)