UN calls for more inclusive and fair digital transformation in Asia and the Pacific

 The rapid, widespread adoption of digital technology, spurred in large part by the Covid-19 pandemic, and its economic and societal ramifications are the key focus of deliberations at a United Nations forum this week.

The Committee on Information and Communications Technology, Science, Technology, and Innovation, which opened today, is set to examine how this digital transformation has brought a number of benefits and opportunities for people, governments and businesses, but also has further widened the digital divide both between and within countries in the region, opening new development gaps and reinforcing a vicious cycle of socio-economic inequalities. 

“The United Nations has referred to the digital divide as the new face of inequality,” said Armida Salsiah Alisjahbana, an under-secretary-general of the United Nations and executive secretary of the Economic and Social Commission for Asia and the Pacific (ESCAP). “That is why digital inclusion must be at the heart of digital transformation and accompanying digital policies and regulations if the promise to ‘leave no one behind’ is to be met.”

This ‘digital big bang’ brought about by the pandemic has compressed normal periods of societal adoption of digital technologies from years to months or even weeks, as digital technology has steadily taken over more aspects of people’s lives. Digital inclusion and resilient digital networks across the region have become the foundation for governments and the private sector to effectively mitigate the worst impacts of the pandemic.

According to the Asia-Pacific Digital Transformation Report 2022, released today by ESCAP, the region is now the most digitally divided in the world, with more than two billion people who do not have access to digital technologies.

However, many government and business services are now ‘digital by default,’ thus the urgent need to develop new development paradigms, policy and regulatory frameworks in a more flexible, adaptive, and corroborative way.

At the heart of such new paradigms is the digital transformation process, where people are not just consumers but also creators of previously unheard-of products and services, thus accelerating the transformation of value systems and socio-economic structures.

The three-day Committee is expected to endorse the Asia-Pacific Information Superhighway action plan for 2022-2026, which consists of a set of coherent actions aimed at bridging the digital divide and accelerating digital transformation for an inclusive digital society.

Additionally, the Committee is preparing for the Fourth Ministerial Conference on Space Applications for Sustainable Development, to be held on October 26 in Jakarta. It is also expected to express support for the Asia-Pacific Digital Ministerial Conference 2022, organised by the Government of the Republic of Korea in cooperation with ESCAP, under the theme ‘Shaping Our Common Future,’ from November 9 to 10, 2022 in Seoul as an important means of promoting multi-stakeholder partnerships on digital transformation in Asia and the Pacific.

Preparing for complex, overlapping crises key to building resilience for countries in Asia and the Pacific

Countries meeting today at the seventh session of the ESCAP Committee on Disaster Risk Reduction were called on to intensify their efforts to prepare for and tackle complex, overlapping crises as the region strives to increase the resilience of its people as well as its economies.

"Notwithstanding the progress made by many countries in devising more robust systems of early warning and responsive protection -- with far fewer people dying as a result of natural disasters -- the Covid-19 pandemic has demonstrated that  almost without exception, countries around the world are still ill-prepared to deal with multiple overlapping crises, which often cascade, with one triggering another,” United Nations under-secretary-general and executive secretary of ESCAP Armida Salsiah Alisjahbana said, adding that tropical cyclones, for example, can lead to floods, which lead to disease, which exacerbates poverty.

Since the start of the pandemic, the region has been hit by multiple natural and biological disasters. At the same time, climate change has continued to warm the world, exacerbating the impacts of many of these disasters. The Asia-Pacific Disaster Report 2021, also launched today, reveals that the pandemic, combined with the persistent reality of climate change, has reshaped and expanded the disaster 'riskscape' in Asia and the Pacific.

The triple threat of disease, disaster and climate change is causing not only considerable human hardship but also significant economic losses. Currently, the annual average disaster-related losses are $780 billion. It could nearly double, to around $1.4 trillion, in a worst-case climate scenario, it reads, adding that choosing a proactive strategy of adapting to natural and other biological hazards would be far more cost-effective at an annual cost of $270 billion.

In her statement during the opening session, the special representative of the United Nations secretary-general for Disaster Risk Reduction Mami Mizutori voiced support for the Committee’s work and reiterated the need for immediate and decisive action to build disaster resilience.

"The string of record-breaking weather events show that we do not have the luxury of ‘waiting this out’: action must be taken now to address these risks,” she said, adding that it includes increasing international funding for disaster risk reduction and climate adaptation, especially for countries graduating from the least-developed category.

Also speaking at the opening session, the secretary-general of the World Meteorological Organisation (WMO) Petteri Taalas emphasised the importance of climate change mitigation efforts. "All in all, successful climate mitigation doesn’t affect our everyday life very much,” he said, “but if we fail with climate mitigation the impact is going to be felt for centuries, even millennia."

The final speaker at the opening session, the secretary-general of the International Telecommunication Union (ITU) Houlin Zhao highlighted the need for countries in Asia and the Pacific to make progress on digital transformation.

"It’s time for the Asia-Pacific region to rely even more on Information and Communication Technologies (ICTs),” he said, adding that he is confident that countries in the region will access the unique opportunity presented by Covid-19 to accelerate digital transformation and leverage the historic role of ICTs in tackling the dual challenges of climate-related disasters and Covid-19.

Today also saw the return of the ESCAP Regional Conversation series, with a Ministerial Panel on Disaster, Climate and Health Resilience. This was the first in a series of four events that will bring together eminent personalities and thought leaders to exchange ideas and solutions to some of the key challenges facing Asia and the Pacific.

In her remarks, Alisjahbana highlighted the need to build universal resilience to address the vulnerabilities the pandemic has exposed and to tackle rising levels of inequality and poverty. She called for a paradigm shift in disaster risk management toward a focus on investing in prevention and the building of resilience.

Achieving an equal future for women in Asia and the Pacific in the post-Covid-19 era

 A dialogue among women leaders in the Asia-Pacific region to mark International Women’s Day (IWD) 2021 highlighted the need for governments to continue their efforts to promote and ensure equal participation and representation of women in decision-making in the region.

Held under the IWD 2021 theme, ‘Women in leadership: Achieving an equal future in a Covid-19 world,’ the event organised by the United Nations (UN) Economic and Social Commission for Asia and the Pacific (ESCAP) and the UN Women Regional Office for Asia and the Pacific (ROAP) provided a virtual platform to share experiences, and recognise the tremendous efforts by women and girls in the region in shaping an equal recovery from Covid-19.

A joint report launched at today’s event by ESCAP and UN Women The Long Road to Equality: Taking stock of the situation of women and girls in Asia and the Pacific for Beijing+25: A synthesis report, shows that, although levels of women’s representation in the region have increased, uneven progress, both within countries and regionally, indicates that achieving gender equality in decision-making is a significant challenge in Asia and the Pacific.

"Without the active participation of women and the incorporation of women’s perspectives at all levels of decision making, the goals of equality, development and peace cannot be achieved,” said UN under-secretary-general and executive secretary of ESCAP Armida Salsiah Alisjahbana. "Within the context of Covid-19, it is now more important than ever to transform discriminatory gender-based social norms, legal frameworks and institutional structures."

"The effective representation of women in public life and decision-making needs to be recognised, not only as being of intrinsic value, but also as the primary way through which decisions, institutions and financing will become gender-responsive,” said UN assistant-secretary-general and UN Women deputy executive director Anita Bhatia.

This year’s IWD theme echoes the priority theme of the upcoming 65th session of the Commission on the Status of Women, ‘Women's full and effective participation and decision-making in public life, as well as the elimination of violence, for achieving gender equality and the empowerment of all women and girls,’ and the flagship Generation Equality campaign.

Participants at the regional event included representatives of governments, the diplomatic community, the UN system, other international organisations, civil society organisations, academia, and youth groups.

UNESCAP launches TINA3.0

 The United Nations (UN) Economic and Social Commission for Asia and the Pacific (ESCAP) today launched the latest update of its Trade Intelligence and Negotiation Adviser (TINA), an online tool designed to assist trade policymakers and researchers in carrying out analytical tasks commonly conducted as part of trade negotiations.

TINA was developed in close consultation with current and former members of trade negotiation teams throughout the Asia-Pacific region, using state of the art methodologies and technologies, according to UNESCAP. “The latest update features a trade agreement text analysis module as well as partial equilibrium impact assessments for tariff liberalisation, least developed country (LDC) status graduation, and tariff preference loss scenarios.”

Many of the intense tasks undertaken for trade liberalisation negotiations require specialised analytical and data management skills and are time-consuming when performed manually. TINA automates many of such tasks, enabling countries with limited resources to benefit from the same level of preparation as those afforded to teams of larger economies.

“As we work together to advance the 2030 Agenda for Sustainable Development, many economies in the region need help in effectively preparing for trade negotiations and assessing the benefits of prospective trade deals,” said UN under-secretary-general and executive secretary of ESCAP Armida Salsiah Alisjahbana at the launch.

“Member states about to graduate from the least developed countries status are in most need of international support measures, as they must negotiate new trade agreements to secure some of the trade preferences they previously received,” Alisjahbana further highlighted.

Since its inception in 2018, TINA has assisted several countries in the region. For example, at the request of the Government of Bangladesh, TINA has been used to help them with the Bangladesh-India trade agreement feasibility study. Bangladesh, Cambodia and Vanuatu have also benefitted from a new key feature of TINA, which evaluates the trade impacts of least developed country status graduation and resulting partial withdrawal of preferences by major trading partners such as the European Union, the United States, China and India. “This feature is significant as it identifies sectors and markets most likely to be impacted, thus drawing policymakers’ attention to accord higher prioritisation to those sectors,” the UNESCAP said.

“One of the most promising features of TINA3.0 is its stated ability to use the partial equilibrium model to identify the most affected sector(s) of an economy when it graduates out of the least developed country status,” secretary at the Ministry of Commerce of Bangladesh Dr Md Jafar Uddin shared, adding that the software promises to help the planners and policy makers understand the overall impact on the graduating economy. “It may be of great use to Bangladesh at this stage.”

While the Covid-19 pandemic has temporarily slowed down some negotiations, trade agreements have continued to grow - in number, scope and complexity. Some 184 trade agreements are currently in force involving at least one Asia-Pacific country, with another hundred either signed or under negotiation as of December 2020.

Green recovery policies once in lifetime opportunity to raise climate ambitions in Asia-Pacific

 While much of the attention this year has been focused on protecting populations as well as the socio-economic impacts and recovery needed, high-level officials from across the Asia-Pacific this week called upon countries to address the environmental roots of the Covid-19 pandemic to further protect the health of people and the planet.

Held yesterday and today, the sixth session of the Committee on Environment and Development was convened by the United Nations (UN) Economic and Social Commission for Asia and the Pacific (ESCAP). The session shone the spotlight on the region’s environmental challenges in the context of the pandemic.

“As we recover better together, the future of our region is fundamentally tied to the success or failure in stewardship of the environmental system and response to the climate change challenge,” UN under-secretary-general and executive secretary of ESCAP Armida Salsiah Alisjahbana, in her opening remarks. “ESCAP analysis shows that business as usual is likely to drive significant tensions between and within countries, climate mitigation, inequality, and hardship,” she said.

“The destruction of the living world not only undermines our only support system; it makes pandemics more likely,” deputy executive director of UN Environment Programme Joyce Msuya said, adding that yet as nations seek ways to recover from the pandemic, “I see a once in a lifetime opportunity to transform our economies and societies at the scale and speed we need as it is vital countries get this right as the impacts will be felt in the decades to come.”

The Asia-Pacific region is experiencing enormous transformations, characterised by rapidly increasing resource consumption, energy use and CO2 emissions. These changes are negatively affecting biodiversity and the environment. While recent commitments being made by countries across the region to significantly reduce emissions and achieve carbon neutrality are encouraging, they are still not enough.

The Committee highlighted four entry points critical to the region: Raising climate ambition, Safeguarding ecosystem health, Clean air for all, and Cities for a sustainable future. Delegates shared that innovative solutions can be harnessed to address the climate crisis.  These include more ambitious mitigation pathways such as increasing energy efficiency of industry and cities by 60 to 70 per cent; decarbonisation of electricity; deep reductions in agricultural emissions; and advancing carbon capture, carbon storage and sequestration measures.

Discussions also focused on realizing environmental benefits through policy convergence and enhanced regional cooperation. Countries considered opportunities to support and scale up collective work on the environment by strengthening implementation of existing multilateral environmental agreements and processes, and mobilizing the region’s technical expertise.

To this end, the Committee endorsed the establishment of a technical expert group to facilitate the exchange of information among countries and various stakeholders in the region to address environmental issues through enhanced climate action, improve the efficiency of natural resources management, address air pollution and promote sustainable urban planning.

UN and EIF launch interactive guide on cross-border paperless trade

 Cross-border paperless trade has great potential to not only grow trade competitiveness but also to address new challenges associated with e-commerce and the digital economy. The United Nations (UN) Economic and Social Commission for Asia and the Pacific (ESCAP), in collaboration with the United Nations Commission on International Trade Law (UNCITRAL) and the Enhanced Integrated Framework (EIF), today launched an interactive guide to support readiness assessments on cross-border paperless trade.

The Online Readiness Assessment Guide for Cross-border Paperless Trade is designed to support countries in the region to conduct self-assessments of legal and technical readiness on cross-border paperless trade, according to a press note issued by the UNESCAP. “With the new guide, countries have at their disposal, comprehensive guides on how to conduct readiness assessments, without the need for intensive physical travelling of experts,” it reads, adding that they will also be able to interact virtually with experts for further guidance on conducting readiness assessment on a request basis.

“The guide being launched today is expected to support member states in conducting self-assessments of their legal and technical readiness for cross-border paperless trade, as a first step towards developing a concrete action plan for implementation,” UN under-secretary-general and executive secretary of ESCAP Armida Salsiah Alisjahbana said at the launch.”

The Framework Agreement on Facilitation of Cross-border Paperless Trade in Asia and the Pacific, that the guide is supporting the implementation of, is designed so that countries at all levels of development and digitalisation can participate, leaving no one behind, she said, urging all member states to complete ratification as soon as possible.

“The Online Readiness Assessment Guide for Cross-border Paperless Trade is an important diagnostic tool to identify opportunities for adopting laws and regulations that enable paperless trade,” UNCITRAL secretary Anna Joubin-Bret said, adding that UNCITRAL texts are a core component of that legal environment. “The importance of taking prompt action in this area has recently been highlighted by the discussions on how to mitigate the economic effects of the Covid-19 pandemic.”

“We are pleased to have cooperated with ESCAP and EIF in preparing this Online Guide and look forward to work with all concerned partners to support States in this critical endeavor,” she shared.

“The potential benefits from digitalization of trade processes are substantial,” executive director of the Executive Secretariat for the EIF Dr Ratnakar Adhikari said.

“The online interactive guide on cross-border paperless trade will be instrumental in supporting countries to assess their technical and legal gaps in electronic exchange of trade data and documents with other trading partners,” he said, adding that they look forward to working with the partners, including ESCAP, to support least developed countries in the region to strengthen their institutional capacity and harmonise data standards towards the vision of an Asia-Pacific paperless trading environment.

Readiness assessments on cross-border paperless trade support implementation of the Framework Agreement on Facilitation of Cross-Border Paperless Trade in Asia and the Pacific, which will soon enter into force on February 20, 2021. Five countries – Azerbaijan, Philippines, Islamic Republic of Iran, Bangladesh and China - have thus far ratified or acceded to this UN treaty. In addition, Armenia and Cambodia have signed in 2017, with several more in the process of completing their domestic processes for accession.

The treaty, with its common set of general principles and a dedicated intergovernmental platform, will support countries in building on the bilateral and subregional digital trade solutions they have already developed to achieve greater, region-wide paperless trade. By enabling exchange and legal recognition of trade data and documents, it could reduce trade costs by 25 per cent across the Asia-Pacific region and support more seamless and resilient trade.

Moreover, the policy responses to the Covid-19 pandemic are having a significant impact on the cost of trading goods across borders. Despite measures taken by many countries to keep goods moving across borders, ESCAP research reveals that international trade costs faced by importers and exporters in the region are expected to rise by 7 per cent on average this year, with some facing increases in costs exceeding 20 per cent.

The new guide is relevant to all countries globally, as it can support the implementation of not only the treaty but also the full digital implementation of the World Trade Organisation (WTO) Trade Facilitation Agreement (TFA).

The Online Readiness Assessment Guide resulted from strong partnerships and continuous efforts in the Asia-Pacific region and beyond. It is based on legal and technical readiness assessment checklists developed by the Interim Intergovernmental Steering Group on Cross-border Paperless Trade Facilitation at ESCAP and its Legal and Technical Working Groups, with contributions from the United Nations Network of Experts for Paperless Trade and Transport in Asia and the Pacific (UNNExT). It benefited from the legal expertise on e-commerce of the UNCITRAL, as well as support from the EIF under a joint project on facilitating cross-border trade in LDCs for sustainable development. It also incorporates lessons learned from other ESCAP trade facilitation projects funded by China, the Russian Federation as well as the Republic of Korea.

Fourth South Asia SDG Forum calls for South Asian cooperation for sustainable and resilient recovery

 The fourth South Asia Forum on the Sustainable Development Goals (SDGs) – organised by the United Nations (UN) Economic and Social Commission for Asia and the Pacific (ESCAP) and the Maldives' government virtually on December 2-3 – brought together over 450 participants from governments, think-tanks, and civil society organizations from eight South Asian countries.

Preceded by the South Asia People’s Forum on SDGs, the Forum reviewed the status of SDG achievements and the actions taken by the South Asian governments towards resilient and sustainable recovery from the Covid-19 pandemic, including Bhutan and Pakistan that will present their second Voluntary National Reviews (VNRs) at the High-Level Political Forum (HLPF) in 2021.

United Nations under-secretary-general and executive secretary of ESCAP Armida Salsiah Alisjahbana advocated greater action on strengthened social protection and financing economic recovery through innovative financing strategies, accelerating digital transformation and greening recovery through the use of clean technology. She also reiterated the commitment of ESCAP in continuing to work closely with member States and other partners in the region.

Likewise, SAARC secretary-general Esala Ruwan Weerakoon on the occasion, highlighted cooperation initiatives such as the SAARC Emergency Fund to curb the pandemic's impact and urged member states to put SDGs at the center of all policy making and recovery planning. He also complimented ESCAP for its work on Covid-19 and for establishing the portal of the South Asia Network (SANS) on SDGs.

BIMSTEC secretary-general Tenzin Lekphell also emphasised the need for aligning plans with the 2030 Agenda and urged member states in South Asia to work together to address the impact of the pandemic and achieve the SDGs.

The forum serves as a subregional preparatory process for the 8th Asia-Pacific Forum on Sustainable Development (APFSD) to be held in March 2021, on the theme of ‘Accelerating action and delivery of the 2030 Agenda in Asia and the Pacific’. Inputs from the Forum will also feed into the HLPF to be held in July 2021. The forum was followed by a special event on Disaster and Climate Resilience in South Asia with the participation of environment ministers of five South Asian countries.

Asia-Pacific countries commit to advance regional cooperation for sustainable connectivity

 Recognising that the Covid-19 pandemic has caused widespread socio-economic impacts and disruptions across Asia-Pacific, high-level officials called for a rethink on the future development of sustainable transport connectivity and mobility in the region at the sixth session of the Committee on Transport, today.

Convened by the United Nations (UN) Economic and Social Commission for Asia and the Pacific (ESCAP), the two-day meeting highlighted pressing regional priorities and areas for policy interventions in the transport sector. Central to discussions were transformative actions for a more sustainable, efficient and resilient regional transport connectivity against the backdrop of the Covid-19 pandemic.

“By anchoring regional connectivity, there is a real opportunity to transform transport systems and services to follow a low-carbon development path, increase the share of clean energy and adopt innovations and emerging smart transport technologies to improve environmental sustainability in Asia and the Pacific,” said UN under-secretary-general and executive secretary of ESCAP Armida Salsiah Alisjahbana.

“Our region faces significant challenges due to the Covid-19 pandemic with the transport sector being one of the hardest hit, and our collective efforts to implement the 2030 Agenda for Sustainable Development now face strong headwinds,” underscored minister of Transport of Thailand Saksayam Chidchob in his opening remarks.

The Asia-Pacific region has made great efforts to preserve transport connectivity during the pandemic. Member countries of the Asian Highway network have maintained all or a significant part of their land borders open for freight. Freight transport has proceeded with limited interruptions along the Trans-Asian Railway network.

The pandemic has also created great momentum for digitisation and shown that there is high potential for a more balanced and sustainable modal split of freight transport, as the use of rail has grown to compensate for the interruptions in road transport operations.

However, significant financial losses sustained by the transport sector will have a lasting impact on its competitiveness in the aftermath of the pandemic.  The Asia road freight industry is expected to experience a turnover decline of 21 per cent in 2020 and rail freight by $1.7 billion for 2020 and 2021. 

In this regard, the Committee also discussed the direction of the next phase of the Regional Action Programme for Sustainable Transport Connectivity in Asia and the Pacific (2022 – 2026), which will be further developed, in close consultation with member countries and submitted for endorsement at the fourth Ministerial Conference on Transport in October 2021.

The next phase of the Regional Action Programme is expected to include accelerated and transformational changes towards more resilient, environmentally sustainable, and safer transport and mobility services in the region. Ambitious actions to incorporate broader social development elements such as gender equality, safety, accessibility, and inclusion in the transport sector were also proposed.

Held every two years, the Committee on Transport provides countries in the Asia-Pacific region with a platform to exchange views, good practices and recommend policies to align the transport sector with sustainable development objectives. The sixth session of the Committee was attended by high-level participants from 38 member countries and 32 organisations.

Asia-Pacific cities at forefront of accelerating sustainable development action, building back better

 As countries strive to build back better post Covid-19, sustainable urbanisation can make cities change agents on solving the persistent problems of climate crisis, unsustainable resource use, widespread inequality, discrimination and injustice in the Asia-Pacific region.

The Asia-Pacific Regional Guidelines on Voluntary Local Reviews, launched today by the United Nations (UN) Economic and Social Commission for Asia and the Pacific (ESCAP) and Penang Platform for Sustainable Urbanisation (PPSU), highlights the critical role local leaders and city governments play in action for the Sustainable Development Goals (SDGs).

“The Covid-19 pandemic has shown us that cities have a transformative potential that can be harnessed and enhanced to forge inclusive, prosperous, and resilient places,” ESCAP’s Environment and Development Division director Stefanos Fotiou said, adding, “as home to most of the world’s urban population, Asia-Pacific cities can serve as the drivers of sustainable development for the achievement of the SDGs and the Paris Agreement.”

Cities are at ground zero of the Covid-19 pandemic with 90 per cent of cases reported globally. This has made many local leaders and governments realise that the social, economic and environmental challenges it poses are not just abstract issues of national concern; they are very real and often played out locally in urban areas.

“The challenges faced calls for a revisit of city’s priorities as we adopt the relevant global goals to review our planning, our policies and strategies, with a stronger focus on resilience,” shared PPSU chair and chief executive of Urbanice Malaysia Norliza Hashim. “Building upon the call for a decade of action, Voluntary Local Reviews can build on local action and people action to accelerate the transformation of cities by creating better city and better life for communities,” she added.

The formulation of VLRs can be a game changer not just in assessing progress but also in encouraging SDG localisation. They provide the opportunity for cities to rethink their planning process as well as better engage local communities in understanding their needs and getting them involved meaningfully in recovery strategies and long-term development efforts.

The Guidelines aim to support Asia-Pacific cities willing to undertake a Voluntary Local Review (VLR) and produce an initial holistic report to stakeholders that connects local strategies with global agendas. Although gaining in momentum, the VLR process does not yet have any official status as part of the formal follow-up and review processes hosted by the UN. The Guidelines are the first of its kind to provide cities with guidance specific to the region to help them decide where to start, how to start and what to keep in mind when conducting a VLR.

This is the first regional knowledge product of the Penang Platform for Sustainable Urbanisation, which was formally established last year at the Asia-Pacific Urban Forum. City partners involved in the development of the Guidelines include Surabaya, Indonesia; Subang Jaya and Shah Alam of Malaysia; Naga of Philippines; Nakhon Si Thammarat of Thailand; Singra of Bangladesh; Dhulikhel of Nepal; and Betio of Kiribati.

Business leaders express support for multilateralism, global value chains to build back better post Covid-19

 Eminent business leaders from across the Asia-Pacific region have expressed strong support for multilateralism and regional cooperation as well as increased public-private partnerships to build back better and more sustainably.

They also underscored that as countries recover from the Covid-19 pandemic impacts, this is no time for nationalism and protectionism; further highlighting the importance of reviving international trade and investment to allow businesses to grow and access world markets.

Over 750 private sector leaders, policymakers and community stakeholders participated in the Asia-Pacific Business Forum (APBF) 2020 today, organised by the United Nations (UN) Economic and Social Commission for Asia and the Pacific (ESCAP) in cooperation with the ESCAP Sustainable Business Network (ESBN).

This year, the Forum discussions focused on ‘The Future of Global Value Chains and Implications for SMEs’. Apart from ongoing trade tensions and market disruptions, the management of the Covid-19 pandemic is challenging the future of business and regional value chains. This has resulted in severe negative impacts on small and medium enterprises (SMEs) to keep their businesses afloat. The current crisis has necessitated the importance of reshoring and consolidation of hubs and architecture of the value chains in the Asia-Pacific region. By raising business resilience, SMEs will be in a better position to participate in value chains and offer new investment opportunities, according to a press note issued by the UNESCAP.

“Governments and business must work together to ensure resilient and sustainable value chains,” UN under-secretary-general and executive secretary of ESCAP Armida Salsiah Alisjahbana said, adding that governments need to provide the appropriate supporting policy and regulatory frameworks to allow for an effective and efficient collaboration within public-private investment mechanisms.

“One crucial opportunity from the economic downturn is that it offers the chance to rebuild,” vice minister for Commerce, Thailand Dr Sansern Samalapa highlighted in his keynote speech. “This is the time to add and strive for more sustainability in global value chains, which is one of the key objectives of the 2030 Agenda for Sustainable Development,” he added.

“Even in this difficult time as we grapple with the impacts of the Covid-19 pandemic worldwide, it is protectionist policies that continue to pose the greatest threat long-term to global supply chains and the millions of small companies that rely on open markets for the health of their businesses and their communities,” secretary-general at the International Chamber of Commerce (ICC) John WH Denton said.

The Forum further highlighted the importance of conducive policy and regulatory environments, as well as greater improvements in sustainable regional connectivity in trade, transport, energy and ICT. In particular, the pandemic has boosted the need for and value of digitalization which cuts across all sectors of the economy. This, underscored Forum delegates, is the modality of the future for business, both large, medium and small.

Established in 2004, the Asia-Pacific Business Forum is the flagship regional business forum organised by ESCAP and ESBN as a platform for regional public-private sector dialogue on the role and needs of business in achieving inclusive, resilient and sustainable development. The ABPF also seeks to showcase innovative and sustainable solutions that businesses are creating in a variety of industries to meet the development needs of Asia and the Pacific.

Young voices inspire sustainable development action at UN75 regional commemoration

 The United Nations (UN) is marking its 75th anniversary at a time of great disruption for the world, compounded by an unprecedented global health crisis with severe economic and social impacts. The regional commemoration jointly hosted by the UN Economic and Social Commission for Asia and the Pacific (ESCAP) and the Office of the United Nations resident coordinator in Thailand today drew attention to the power of innovation and partnerships, especially among younger generations, in building a better future post Covid-19.

“We face colossal challenges. With global solidarity and cooperation, we can overcome them,” shared UN secretary-general Antonio Guterres in a special video message. “That’s what the United Nations is all about,” he said, asking people everywhere to join together, on this anniversary. “The United Nations not only stands with you; the United Nations belong to you and is you: we the peoples.”

“History teaches that we are more effective and relevant, if we empower people to support the societal transformation that we aspire together,” UN under-secretary-general and executive secretary of ESCAP Armida Salsiah Alisjahbana said, adding that accelerating progress towards the 2030 Agenda, the Paris Agreement, the Sendai Framework, and other internationally agreed development goals, is possible only through an enhanced multilateral cooperation and development partnership.

In January 2020, the UN also launched the UN75 initiative. Dubbed the world’s largest conversation, thousands of people shared their hopes and fears for the future, as well as their expectations of international cooperation and of the UN in particular. When asked where we should be in 25 years, most responses focused on human rights, environmental protection, tackling inequalities and better access to education. Respondents also cited climate change and environmental issues as the most influential trends for the future.

Several dignitaries and eminent persons also shared messages reflecting on the organisation’s 75-year journey and the way forward. They included Prime Minister of Tuvalu Kausea Natano, Kazakhstan foreign minister Mukhtar Tleuberdi, Maldives foreign minister Abdulla Shahid, foreign minister Pradeep Kumar Gyawali, Republic of Korea foreign minister Kang Kyung-wha, Russian ambassador to Thailand Evgeny Tomikhin, chairperson of China Disabled Persons’ Federation Haidi Zhang, Fung Group senior advisor Barbara Meynert, former Pacific Community director general Dr Collin Tukuitonga, Asia director of the Action Group on Erosion, Technology and Concentration Elenita Dano, special adviser to the UN secretary-general Fabrizio Hochschild and 75-year old former staff ESCAP member Pudpong Ujjin.

The discussions also brought to light what is needed for change to take root, from embracing sustainability in individual choices to policy support for social enterprises.

Asia-Pacific countries endorse action plan to strengthen social protection

 Countries in the Asia-Pacific region have today endorsed an action plan pledging to collectively step up regional cooperation for social protection – a timely move as governments are striving to protect people from unprecedented economic and social development setbacks wrought by the Covid-19 pandemic.

The action plan was endorsed at the sixth session of the Committee on Social Development, hosted by the United Nations (UN) Economic and Social Commission for Asia and the Pacific (ESCAP) this week. It serves as an overarching framework for action at the national level and develops a regional platform to strengthen knowledge and capacity for broadening effective social protection coverage.

“To counter the economic fallout from the Covid-19 pandemic, many member states have strengthened existing social protection schemes and sometimes introduced new, ad hoc measures,” said UN under-secretary-general and ESCAP executive secretary Armida Salsiah Alisjahbana in her opening remarks. “In times of socio-economic crisis, social protection is our society’s primary line of defence,” she said, underscoring that they need to invest in comprehensive social protection systems and to monitor our progress in achieving relevant targets of the 2030 agenda to ensure an inclusive, resilient, and prosperous Asia-Pacific.

The regional action plan on social protection provides countries with a shared vision, strategy and platform for promoting partnership, peer learning as well as identifying needs for technical assistance. The plan further aims to accelerate implementation of the 2030 Agenda for Sustainable Development by including those at risk of being left behind.

“As we continue to tread unknown and uncertain grounds, the committee provided an opportunity to forge ways to strengthen social protection as a key instrument for building resilience,” Ambassador of Sri Lanka Samantha K Jayasuriya, who served as the chair of the sixth session, said, adding that the region is facing unprecedented demographic shifts, which has resulted in profound impact on sustainable development. “In addition, Covid-19 has affected all population groups in the region, with those in vulnerable situations at particular risk of being impacted such as older persons, women, persons with disabilities and migrants.”

“This vulnerability is not inevitable,” she added.

The committee also endorsed an indicator framework for monitoring progress towards the implementation of the Programme of Action of the International Conference on Population and Development (ICPD) and the Asian and Pacific Ministerial Declaration on Population and Development. Adoption of the framework means that the progress toward these commitments will now be measurable.

Both commitments address fundamental inequalities in access to health, education, and social protection, emphasise the value of investing in women and girls and strengthen access to sexual and reproductive health. The indicator framework can be used for voluntary national reviews (VNRs) and supports governments in designing specific policies that will eventually reduce inequalities in access to health, education and social protection.

Levels of social protection coverage remain strikingly low in Asia and the Pacific, with just over half the population having no access to any social protection scheme. Insufficient investments in social protection has proven a persistent reason for these gaps. The pandemic has further perpetuated pre-existing inequalities, including gender inequalities.

The committee’s thematic focus on social protection follows the launch of ESCAP and ILO’s Social Outlook for Asia and the Pacific 2020: The Protection We Want last week. The Outlook is the first-ever regional report on social protection in Asia and the Pacific, which evidences that well-managed social protection systems have been far better equipped to respond to the unexpected and shielding the most vulnerable.

Critical gaps in social protection hampering Asia-Pacific region’s resilience to Covid-19

 The Covid-19 pandemic has highlighted the need for well-functioning social protection systems in the region as never before. A new UN report released today reveals that despite their rapid socioeconomic ascent, most countries in the Asia-Pacific region have weak social protection systems riddled with gaps.

About half of the region’s population has no social protection coverage, according to the publication ‘The Protection We Want: Social Outlook for Asia and the Pacific’, jointly produced by the United Nations (UN) Economic and Social Commission for Asia and the Pacific (ESCAP) and International Labour Organisation (ILO) Regional Office for Asia and the Pacific. Only a handful of countries have comprehensive social protection systems with relatively broad coverage.

“Comprehensive social protection creates the foundation for healthy societies and vibrant economies,” UN under-secretary-general and executive secretary of ESCAP Armida Salsiah Alisjahbana said, adding that the Covid-19 pandemic has brought this imperative into sharp focus, by demonstrating the stabilizing effect well-functioning social protection systems have and how their absence exacerbates inequality and poverty. “Delivering effective social protection to all people across our region is already shaping our approach, as we advocate combining short-term relief with longer-term strategies to build back better in the aftermath of the pandemic.”

The scope and scale of existing programmes is still limited. Most poverty-targeted schemes are failing to reach the poorest families and the pandemic risks further reversing progress to eradicate poverty by almost a decade. Many countries are also facing high levels of inequality, both in outcomes and opportunities, which the pandemic has exacerbated. Population ageing, migration, urbanisation, natural disasters and climate change, as well as technological advancements are further compounding these challenges.

The report identifies significant underinvestment as one of the main factors for the huge coverage gap. Excluding health, many countries in the region spend less than 2 per cent of GDP on social protection. This low level of investment in people stands in stark contrast to the global average of 11 per cent. Another key reason is the high prevalence of informal employment in the region, representing close to 70 per cent of all workers.

“The Covid-19 crisis has exposed the precarious situation of many working women and men and especially those in the informal economy,” regional director at the ILO Regional Office for Asia and the Pacific Chihoko Asada-Miyakawa said, adding that there is a clear need for further investment in public social protection systems, if we are to avoid the stagnation of social and economic progress made across the region in recent decades.

Expanding social protection would have an immediate impact on reducing poverty, inequality and purchasing power disparities. For example, the proportion of households living in poverty would fall by up to 18 percentage points if governments were to offer basic child benefits, disability benefits and old-age pensions.

While the required investment of two to six per cent of GDP is significant, the report demonstrates that it is within the grasp of most countries. The report recommends governments to reprioritise existing resources, boost public revenues, tap into new technologies and embed social protection into national development strategies, underpinned by social dialogue.

The report was launched on the sidelines of the fifth Regional Conversation Series on Building Back Better. The high-level dialogue on ‘Social Protection: A Right for All, or A Privilege for a Few?’

Pandemic response in South-East Asia must address rising inequalities: UN report

The United Nations (UN) has commended governments in South-East Asia for acting swiftly to stem the most serious health consequences of the Covid-19 pandemic. Robust regional cooperation, coordinated by ASEAN, has also resulted in South-East Asia reporting significantly lower confirmed Covid-19 cases and related deaths compared to most other global regions.
The UN secretary-general’s Policy Brief ‘The Impact of Covid-19 on South-East Asia’ – issued today – however warns that these early successes must be translated into addressing the serious socio-economic setbacks which threaten to further deepen inequalities across the region.
“As in other parts of the world, the health, economic and political impact of Covid-19 has been significant across South-East Asia, hitting the most vulnerable the hardest,” UN secretary general António Guterres said, adding that the pandemic has highlighted deep inequalities, shortfalls in governance and the imperative for a sustainable development pathway. “And it has revealed new challenges, including to peace and security, while the region has much work to do, it also has formidable capacities at its disposal.”
The new UN report examines how Covid-19 has affected eleven countries in South-East Asia and proposes action-oriented recommendations on mitigating immediate impacts and planning pathways out of the crisis.
“The Brief highlights the disproportionate impact of the pandemic on vulnerable groups, particularly workers in the informal economy,” UN under-secretary-general and executive secretary of the Economic and Social Commission for Asia and the Pacific (ESCAP) Armida Salsiah Alisjahbana, said, adding that the crisis is threatening to push them back into poverty and unemployment. “Responding to the pandemic and delivering on the Sustainable Development Goals are closely interlinked.”
“We need a future that is more equitable, sustainable and resilient,” she added.
Moving forward, four areas will be critical in the region’s plans for recovery: tackling inequality, bridging the digital divide, greening the economy, and upholding human rights and good governance.
The uneven landscape of social protection systems has placed tackling inequality at the centre of both short and long-term recovery efforts, according to the report. Increased investments to strengthen health systems and accelerate progress towards universal health care will be critical to support those excluded from formal policy and social protection measures.
Digital technology has also proved to be a critical tool in response to the pandemic. However, the benefits it offers are beyond the reach of the 55 per cent of South-East Asia’s population who remain offline. A regionally coordinated and scaled up effort is needed to put in place next-generation infrastructure networks and ensure universal digital connectivity, highlights the Brief.
The crisis presents an opportunity for countries to re-orient their development towards sustainability particularly through green recovery packages. Stimulus packages should be directed to industries that are low-carbon, resource efficient and aligned with environmental and climate objectives. By phasing out fossil fuel subsidies, countries could finance most or all of their current stimulus packages. Such measures would create massive fiscal space and greatly boost low carbon alternatives such as renewable energy and energy efficiency.
The Brief further underscores that countries in South-East Asia and their leaders can play an important role in upholding human rights and good governance practices in the face of the Covid-19 pandemic. Leaders can leverage community-based organizations, promote inclusion, participation and unity; and speak out against discrimination.
The report is part of a series of policy briefs issued by the UN that examine the sectoral and geographical dimensions of the Covid-19 pandemic across the world.

UN launches call for research proposals on evidence-based financial solutions for women entrepreneurs in Asia-Pacific

The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) has launched a call for research proposals which will provide up to $25,000 in funding to a maximum of six proposals, to undertake human centered design inspired research. The research should explore the nuanced challenges faced by women entrepreneurs in accessing financing at different stages of their enterprise journey and offer solutions to those challenges, it said, adding that the objective of the applied research is to identify innovative financial solutions that can be developed or tailored to best address the needs and demands of women entrepreneurs in Bangladesh, Cambodia, Fiji, Nepal, Samoa and, or Viet Nam. “ESCAP’s Catalyzing Women’s Entrepreneurship initiative, with financial support from the government of Canada, works to create an enabling entrepreneurial ecosystem for women.”
The research findings through the initiative will be used to inform the design of market-based solutions that enhance different groups of women entrepreneurs’ access and use of financial services. The research findings should also inspire replication of proposed solutions in other markets, it added.

ADB, ESCAP discuss stepping up cooperation to help Asia-Pacific in addressing Covid-19 crisis

Asian Development Bank (ADB) president Masatsugu Asakawa and United Nations (UN) Economic and Social Commission for Asia and Pacific (ESCAP) executive secretary Armida Salsiah Alisjahbana today discussed enhancing cooperation to help the region as it addresses the novel coronavirus disease (Covid-19) pandemic.
“ESCAP played a key role in the establishment of ADB and our two organisations have a long history of close partnership,” Asakawa said, adding that the continued cooperation is now more important than ever. “We must seek further synergies by combining our knowledge, networks, and finance to help developing Asia address health, social, and economic crises caused by Covid-19.”
“Supporting our member countries build back better after Covid-19 lies at the heart of both our agendas,” Alisjahbana said, adding that she is looking forward to deepening the cooperation to get this region’s economies and societies back on their feet in a way that protects our region’s precious environmental resources – very much including our oceans.
ADB and ESCAP launched with the United Nations Development Programme (UNDP) a joint report on fast-tracking the Sustainable Development Goals (SDGs) in Asia-Pacific, at the 7th Asia-Pacific Forum on Sustainable Development in May. The forum concluded that the future of the region will be dictated by how countries respond to the pandemic and how well these responses are aligned with the 2030 Agenda for Sustainable Development.
The two organisations also organise the Asia-Pacific Trade Facilitation Forum and collaborate across many other areas, such as the Thematic Working Group on Gender Equality and on the Asia Pacific Climate Week. ADB is looking to expand cooperation with ESCAP on areas including gender inequality, climate change, ocean pollution, and boosting quality infrastructure.
ESCAP recently announced a framework of support to member states as they respond to the socioeconomic impact of the Covid-19 pandemic. The framework centers on three streams of work, (i) supporting sustainable and inclusive economic recovery through fiscal and monetary stimuli in line with the 2030 Agenda and Paris Agreement; (ii) protecting and investing in people and enhancing resilience of societies and communities, especially women and vulnerable groups of population; and (iii) restoring and building resilience in supply chains through regional and subegional coordination on trade, investment, transport and digital  connectivity and supporting small and medium enterprises.
The framework also encourages countries to seize the opportunity to protect the environment by reducing pollution, supporting decarbonisation and energy efficiency, and combating climate change.
ESCAP serves as the UN regional hub promoting cooperation among countries to achieve inclusive and sustainable development. The largest regional intergovernmental platform with 53 member states and 9 associate members, ESCAP offers countries sound analytical products, policy advisory services, capacity building and technical assistance to support countries’ sustainable and inclusive development ambitions.

Increase spending on managing Covid-19 pandemic: UN regional arm

The novel coronavirus (Covid-19) pandemic is having far-reaching economic and social consequences for the Asia-Pacific region, with strong cross-border spillover effects through trade, tourism and financial linkages, according to a new report by the United Nations (UN) Economic and Social Commission for Asia and the Pacific (ESCAP) released today.
The Economic and Social Survey of Asia and the Pacific 2020 highlights the Covid-19 pandemic as the immediate risk to the region’s economic outlook, deepening the economic slowdown that was already underway. Although there are significant uncertainties surrounding the pandemic, the negative impacts are likely to be substantial.
As governments respond to the unprecedented health crisis and introduce economic stimulus packages, the report estimates that Asia-Pacific developing countries should increase health emergency spending by $880 million per year. The survey also calls on Asia-Pacific countries to consider establishing a regional fund to respond to future health emergencies.
The ESCAP report suggests that, in the wake of the Covid-19 pandemic, policymakers should maintain accommodative macroeconomic policies to sustain the economic health of the region. Fiscal and monetary policies should be focused on supporting affected enterprises and households and preventing economic contagion. Fiscal spending can also play a significant role in enhancing the ability of health responders to monitor the spread of the pandemic, care for infected people and improve health emergency preparedness.
At the same time, countries should take the opportunity posed by these challenging times to rethink their economic development strategies towards a more inclusive, sustainable and planet-friendly economy. Countries in the region are not only going through a public health crisis but also a climate emergency, which is permanent and even more far-reaching and potentially more disastrous than the pandemic.
“Policymakers should not lose sight of people and the planet,” UN under-secretary-general and executive secretary of ESCAP Armida Salsiah Alisjahbana. “When it comes to designing economic stimulus packages, social inclusiveness and environmental sustainability must be built into every decision.”
The ESCAP report further reveals that the decades-long high economic growth in the region has been accompanied by growing inequality of income and opportunity, and detrimental impacts on the planet, which are endangering the well-being of present and future generations. Unsustainable consumption and production patterns have substantially increased greenhouse gas emissions, exacerbating the vulnerability of the region to climate change. Additionally, $240 billion worth of annual subsidies continue to feed the region’s heavy dependence on fossil-fuels.
It calls for a transition towards sustainable consumption and production, with cleaner production and less material-intensive lifestyles, supported by enabling policies. This would require all stakeholders, notably governments, businesses and consumers, to urgently align their own goals and actions with the 2030 Agenda for Sustainable Development.
The report urges strengthening of regional cooperation to raise the ambition to tackle climate emergency. Governments should scale up their efforts on climate-related standards, carbon pricing and implement sustainable consumption and production patterns at the regional level.
Produced annually since 1947, the Economic and Social Survey of Asia and the Pacific is one of the longest-running UN reports on the region’s progress. The survey provides analyses to guide policy discussion on the current and emerging socioeconomic issues and policy challenges to support inclusive and sustainable development in the Asia-Pacific region.

Asia expected to bounce back in 2020 with positive trade growth

Asia-Pacific economies may see positive trade growth in 2020 but are still facing downside risks from the adverse impacts of the United States-China trade tensions, two new trade briefs by the United Nations (UN) Economic and Social Commission for Asia and the Pacific (ESCAP) released today revealed.
Trade in the Asia-Pacific region contracted during 2019. For the first time since the 2009 global economic crisis, the value and volume of trade in the region is declining. Total export volume fell by 2.5 per cent, while import volume decreased by 3.5 per cent. Oil exporting economies such as Islamic Republic of Iran and Indonesia as well as Japan, Singapore and Hong Kong, China registered some of the largest declines in export volume.
Merchandise trade in the region also faced strong headwinds in 2018-2019 caused by the worldwide economic growth slowdown and heightened trade tensions. These have had an adverse effect on trade, particularly in the case of economies closely integrated with China through Global Value Chains (GVCs). Integration of smaller traders into the global and regional economy through GVCs is becoming more difficult. New import barriers increase the cost of production and reduce the competitiveness of companies participating in regional production networks.
The ESCAP earlier estimated the tariff war-related toll on gross domestic product (GDP) could reach as much as $400 billion worldwide and $117 billion in the Asia-Pacific region. These projections are materialising and could increase unless current efforts to reduce trade tensions are successful.
“For the Asia-Pacific region, the challenge is to increase trade and deepen economic integration to support sustainable development,” UN under-secretary-general and executive secretary of ESCAP Armida Salsiah Alisjahbana said, adding that looking ahead to 2020, the agreement reached between China and the US is welcome and should reduce policy uncertainty.  She further underscored the importance of the multilateral trading system to underpin future trade growth.
The new guarantees provided by the implementation of the Phase-I deal reached between China and the US might boost investor and consumer confidence enough for trade in the region to grow by about 1.5 per cent in 2020. This growth would be felt more in developing economies, which could see a 1.9 per cent and 2.7 per cent growth in exports and imports respectively in 2020. However, country-level forecasts vary widely and uncertainties are high.
In trade in commercial services, the region again outperformed the rest of the world in 2019. Relatively slower growth is expected in 2020, with transport services, other business services and goods-related services expected to be most affected sectors. The mid to long-term prospects for trade in services – in particular ICT and business services – remain bright, supported by technological advances.
Commercial services trade in Asia and the Pacific continue to be dominated by a relatively small number of economies, namely China, Japan, India, Singapore, Republic of Korea and Hong Kong, China – accounting for over 70 per cent of total commercial services trade in the region. Increasing business opportunities associated with digital technologies may lead to a further concentration of trade opportunities in those economies.
The ESCAP trade briefs serve as a complement to the Asia-Pacific Trade and Investment Report 2019. They provide in-depth analysis of performance and trends in 2018-2019, and the outlook for 2020 at regional and country levels, with a special emphasis on the impact of escalating trade tensions within and outside the region.

UN regional arm explores a new financial landscape for Asia and the Pacific

Mobilising sufficient financing remains a major challenge to effectively pursue the 2030 Agenda for Sustainable Development, underscored high-level delegates at a UN conference today.
Although interest in conventional and innovative financing options is growing among public and private sectors, investments needed to achieve the Sustainable Development Goals (SDGs) continue to remain underfunded.
The Asia-Pacific Conference on Financing for Inclusive and Sustainable Development is co-organised by the United Nations (UN) Economic and Social Commission for Asia and the Pacific (ESCAP) and the Government of Bangladesh, in collaboration with the International Chamber of Commerce-Bangladesh and the Asian Development Bank (ADB).
In her opening address, UN under-secretary-general and executive secretary of ESCAP Armida Salsiah Alisjahbana warned that the region is unlikely to achieve any of the SDGs by 2030 in a ‘business-as-usual’ scenario. “ESCAP has estimated that developing countries in Asia and the Pacific should invest an additional $1.5 trillion per year, or 5 per cent of their combined GDP, to achieve the SDGs by 2030,” Alisjahbana said, adding that ambition is the only option in our region today.
The funding gap for countries in South Asia – including Bangladesh – is even higher as 10 per cent of the GDP. Alisjahbana further emphasised that while mobilising private financing is essential to unlock enough resources for the achievement of the SDGs, the achievement of many of the Goals will still need additional public funding which requires modernising tax systems and improving the efficiency of tax administrations.
Delegates at the conference highlighted that given the considerable financing gaps in Asia and the Pacific, developing countries need to mobilise additional financial resources by increasing domestic resources, partnering with the private sector, and enhancing international development cooperation. Financing the SDGs would also need unprecedented coordination and cooperation between the public and private sectors, facilitated by international development agencies and multilateral development banks (MDBs).
Among other areas, the three-day conference will discuss how to scale up investment and international development cooperation to adequately finance the 2030 Agenda for Sustainable Development in the region. Delegates will also explore how countries can strengthen and diversify financial flows, as well as innovative financing approaches such as taxation, capital markets, non-bank financial schemes, climate finance, small business and supply chain financing, and FinTech solutions.
Speakers at the conference advocated enhancing the financial system at both regional and national levels by addressing the barriers that constrain channelling finance towards sustainable development and leveraging opportunities to increase investment in the SDGs at scale.
The regional conference was inaugurated in Dhaka by President of Bangladesh Md Abdul Hamid. Also present were the minister of Foreign Affairs of Bangladesh Dr AK Abdul Momen, the finance minister of Bangladesh AHM Mustafa Kamal, Private Industry and Investment adviser to the Prime Minister of Bangladesh Salman Fazlur Rahman and ICCB president Mahbubur Rahman.
On the occasion, UN secretary-general António Guterres and former secretary-general of the UN Dr Ban Ki-moon also participated in the conference through their video messages. Over 800 government officials and representatives of international organisations, private sector and civil society are participating in the conference.
The conference provides a multi-stakeholder forum to build consensus and articulate the views of the region on financing for development issues through high-level regional consultations. The conference not only enhances sharing knowledge and best practices among the participants to facilitate SDG funding but also ignites the discussions on new policy and cooperation frameworks at the regional level to facilitate financial resource mobilisation to achieve the 2030 Agenda.

Asia-Pacific becomes largest destination and source of foreign direct investment

For the first time, the Asia-Pacific region has become the largest destination and source of foreign direct investment (FDI) globally, according to a new report launched by the United Nations (UN) Economic and Social Commission for Asia and the Pacific (ESCAP).
The study ‘Foreign Direct Investment Trends and Outlook in Asia and the Pacific’ finds that the region is expected to maintain steady inflows and outflows of FDI in 2019 and 2020. In 2018, it attracted 45 per cent of global FDI inflows and was responsible for 52 per cent of global outflows. Developing countries in the region attracted 40 per cent of global FDI inflows and were responsible for 37 per cent of global FDI outflows. Despite escalating trade tensions, inflows to China increased from $134 billion in 2017 to $139 billion, making it the largest recipient of FDI inflows to region for the third consecutive year.
The sheer scale of outward FDI in the region raises important questions about its impact on the sustainable development of source countries. The analysis in the study is expected to help policymakers maximize the potential of FDI to contribute to the 2030 Agenda for Sustainable Development and implement sustainable investment promotion strategies for both inward and outward FDI.
One important consideration is the holistic analysis of the region’s FDI flows amid broader economic trends. Despite continuous movement of FDI, sluggish growth in inward greenfield investments may hamper the region’s ability to attract the same levels of investment in 2019, and a decline in investment flows in 2020 is expected if both the uncertainty related to international trade continues and companies consolidate their value chains. Therefore, investment prospects for the region remain tied to unfolding risks of ongoing global political and economic disturbances.
As intraregional FDI flows continue to grow in significance, more opportunities will arise for investment cooperation in the name of sustainable development between the sources and recipients of FDI in the region. During the past decade, the share of intraregional greenfield inflows increased from 40 per cent in 2009 to 53 per cent in 2018. ASEAN member countries attracted the largest share of intraregional flows in 2018, while countries from the East and North-East Asia subregion were the largest sources of intraregional FDI.
The findings of the report were discussed at the 9th Asia-Pacific FDI Network meeting. The FDI Network meeting brings together FDI policymakers, practitioners and experts from around the region and beyond to discuss FDI issues to ensure that FDI better supports the achievement of the 2030 Agenda and increase their knowledge through exchange of experiences and interaction with FDI experts.
The report is the first brief in a new annual publication series by ESCAP called Asia-Pacific Trade and Investment Trends. This will be an annual series which draws on ESCAP’s expertise in trade and investment analysis to highlight the most important trends and forecast their impact in these two areas. The briefs will equip policymakers with the necessary information they need to make timely decisions on trade and investment policies and enable inward and outward FDI cooperation among its member states.