Samarkand: The Asian Development Bank (ADB) Monday called for deepening regional cooperation and accelerating structural reforms in the Asia Pacific, warning that the region stands at a “new crossroads” amid rising geopolitical tensions, economic disruptions, and environmental stress.
In his inaugural address at the annual meeting of the multilateral lender here, ADB president Masato Kanda said the region is entering a “new normal” defined by overlapping crises, including conflict-driven supply shocks, fragmentation of global trade, and climate-related risks that are increasingly straining economies and households.
“The paradigm has shifted. Our response must shift with it,” the bank said, cautioning that traditional, country-by-country approaches are no longer sufficient to deal with systemic global shocks.
He termed the ongoing conflict in the Middle East as a major risk to Asia’s economic outlook, describing it as a “direct hit to the global economic engine.” Given Asia’s position at the end of complex supply chains, the region is particularly vulnerable to disruptions in fuel, freight, and finance flows.
“These shocks do not respect borders,” he said, adding that their impact is being felt most acutely by vulnerable communities through rising living costs.
He said ADB had scaled up both financing and institutional reforms to respond more quickly to crises.
The bank committed a record $44 billion in 2025 to support the region, including over $29 billion from its own resources, marking a 20% increase from the previous year, and nearly $15 billion mobilised from partners.
ADB also announced a series of internal changes aimed at improving speed and efficiency.
A major highlight of the strategy is the launch of a $50 billion Pan-Asia Power Grid initiative on Sunday, aimed at integrating energy systems across borders, he said.
He noted tha cross-border energy trade would help stabilise renewable energy supply and lower costs by balancing fluctuations across countries.He said ADb also plans for a $20 billion Asia-Pacific Digital Highway to address gaps in digital infrastructure.
The bank aims to quadruple its private sector financing to $13 billion annually by 2030, he said, adding that it plans to expand its trade and supply chain finance programme from $5.7 billion last year to $6.5 billion annually.
Speaking at the conference, Uzbekistan president Shavkat Mirziyoyev said it is necessary for members to introduce jointly with the Bank new mechanisms and effective approaches to ensure sustainable development with the global economy is experiencing complex changes. establishing a "Digital Customs and Logistics Alliance" within the framework of the Bank's Central Asia Regional Economic Cooperation (CAREC) program.
“This will create the opportunity to streamline customs procedures, digitize document flow, and facilitate cross-border cargo transportation,” he added.
He also proposed implementing a special program under the auspices of the Asian Development Bank to scale up artificial intelligence in developing countries.
In his inaugural address at the annual meeting of the multilateral lender here, ADB president Masato Kanda said the region is entering a “new normal” defined by overlapping crises, including conflict-driven supply shocks, fragmentation of global trade, and climate-related risks that are increasingly straining economies and households.
“The paradigm has shifted. Our response must shift with it,” the bank said, cautioning that traditional, country-by-country approaches are no longer sufficient to deal with systemic global shocks.
He termed the ongoing conflict in the Middle East as a major risk to Asia’s economic outlook, describing it as a “direct hit to the global economic engine.” Given Asia’s position at the end of complex supply chains, the region is particularly vulnerable to disruptions in fuel, freight, and finance flows.
“These shocks do not respect borders,” he said, adding that their impact is being felt most acutely by vulnerable communities through rising living costs.
He said ADB had scaled up both financing and institutional reforms to respond more quickly to crises.
The bank committed a record $44 billion in 2025 to support the region, including over $29 billion from its own resources, marking a 20% increase from the previous year, and nearly $15 billion mobilised from partners.
ADB also announced a series of internal changes aimed at improving speed and efficiency.
A major highlight of the strategy is the launch of a $50 billion Pan-Asia Power Grid initiative on Sunday, aimed at integrating energy systems across borders, he said.
He noted tha cross-border energy trade would help stabilise renewable energy supply and lower costs by balancing fluctuations across countries.He said ADb also plans for a $20 billion Asia-Pacific Digital Highway to address gaps in digital infrastructure.
The bank aims to quadruple its private sector financing to $13 billion annually by 2030, he said, adding that it plans to expand its trade and supply chain finance programme from $5.7 billion last year to $6.5 billion annually.
Speaking at the conference, Uzbekistan president Shavkat Mirziyoyev said it is necessary for members to introduce jointly with the Bank new mechanisms and effective approaches to ensure sustainable development with the global economy is experiencing complex changes. establishing a "Digital Customs and Logistics Alliance" within the framework of the Bank's Central Asia Regional Economic Cooperation (CAREC) program.
“This will create the opportunity to streamline customs procedures, digitize document flow, and facilitate cross-border cargo transportation,” he added.
He also proposed implementing a special program under the auspices of the Asian Development Bank to scale up artificial intelligence in developing countries.
