President of the Asian Development Bank (ADB) Haruhiko Kuroda said Friday that Asia today is more "resilient" to external shocks than it was a decade ago and the region could "avoid a full-fledged financial crisis."
Speaking at Asia Society Headquarters in New York, Haruhiko Kuroda, a special advisor to former Japanese Prime Minister Junichiro Koizumi and a professor at the graduate school of economics at Hitotsubashi University, Tokyo, cited three reasons to support his argument.
Asia today has better "external positions" and large international reserves, he said, adding that the region's financial institutions have little direct exposure to U.S. subprime mortgages and structured credit products, the root causes of the current turmoil.
Furthermore, he said, more prudent economic policies implemented in most Asian countries since the 1997 crisis should help mitigate the impact of external shocks.
Kuroda also discussed the impact of the global financial crisis on Asia and recommended strategies that may help Asian countries weather these challenging times.
He acknowledged the recent significant slowdown in Asia's economic growth and predicted further deterioration.
However, he said that trade, direct investment, and social exchange will only increase, which in turn will be crucial for ensuring Asia's continued growth during a difficult period as Asia's economy becomes more integrated.
Kuroda concluded his remarks by encouraging national and regional collaboration in Asia and stressing the importance of multilateral banks to the region.
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