Luke Simpkins (Cowan, Liberal Party) Share this | Hansard source

I take this opportunity to speak on the Asian Development Bank (Additional Subscription) Bill 2009. I do so because I have a great interest in these matters and the region. I will begin by talking about the Asian Development Bank itself. It was established in 1966 and comprises 67 member countries, 44 of which are developing nations in the region. With an aim of furthering economic development through the Asia-Pacific region and a vision of a poverty-free region, the bank provides loans and equity investment to the members that are developing nations.

I understand that in 2008 the Asian Development Bank lent US$10.5 billion. As part of the loan program the Asian Development Bank has also become involved in the policies and programs within the country involved. To put the bank’s activities in perspective, the major borrowers in the last year have been India, China, Pakistan, Indonesia, the Philippines and Vietnam. The sectors that received most assistance were transport and communications at 24 per cent and energy at 20 per cent. Australia of course has a large stake in the Asian Development Bank, being the fifth largest shareholder, and there are 49 Australians actually employed amongst the bank’s professional staff.

In April 2009, the board of the Asian Development Bank decided to increase the bank’s authorised capital stock by 7,092,622 shares, as well as increasing individual members’ subscriptions. If all members of the bank subscribe fully to these new levels, the capital of the bank will be tripled, whilst maintaining the share levels of each of those member nations. Consistent with Australia’s ongoing obligations to the Asian Development Bank, the government did announce in this year’s budget a contribution of US$197.6 million for capital to be paid into the bank and also accepted an uncalled capital subscription increase of US$5.6 billion. The funding commitment and the acceptance of an increased capital subscription will enable the Asian Development Bank to meet the region’s ongoing development needs.

I would, however, like to make mention of how the Asian Development Bank operates, because I have read that the bank involves itself in the policies and spending programs of countries that it lends to. In particular I note that the Socialist Republic of Vietnam is in receipt of loans from the bank. There is little doubt that the people of Vietnam need to benefit from the work of the bank; however, what is not clear is what sort of governance and political freedom obligations are imposed on recipients of loans and technical assistance. Apart from the issues of moral standards of good governance as well as the freedoms of speech, religion and democracy, providing money to inefficient regimes serves only to prop up that inefficiency. This is not the way to produce ongoing economic capacity. Democracy and a free market economy is the destination, and the bank should help the people of Vietnam get there by imposing obligations on the Socialist Republic of Vietnam.

In researching this contribution, I looked at a potential recipient of assistance from the Asian Development Bank, Myanmar, or Burma as we often refer to it. As all members of this parliament would be aware, democracy does not exist in that country, and the people of Burma, the Karen minority particularly, do not thrive under the regime. The bank notes about Burma:

High prices for natural gas exports continued to support modest rates of growth in FY2007. Inflation remained at around 30%, largely the result of money creation to finance fiscal deficits.

That demonstrates the level of effectiveness of the regime in Burma. We should remember that this is the regime that built a new capital and began moving its institutions of government to that capital based on the advice of soothsayers and superstition. Although the bank has not provided direct assistance to Burma in over 20 years, the bank could play a part in advancing democracy in that country. Burma represents an opportunity for the bank to create change for the better and meet the vision of the bank attacking poverty in Asia.

I have spoken about the opportunities for the Asian Development Bank to progress opportunities for people in Vietnam and in Burma. I acknowledge that the bank recently held a joint meeting with the Organisation for Economic Cooperation and Development in Manila. The Asian Development Bank and the OECD’s joint Anti-Corruption Initiative for Asia and the Pacific brings together government representatives and anticorruption officials from 28 countries and jurisdictions in the Asia-Pacific region. I commend the Asian Development Bank for their work, because it has been estimated that bribery payments around the world amount to in excess of $1 trillion each year, and that money could be far better spent on reducing poverty.

With this bill being about the Asian Development Bank, it is appropriate that in the last few days we have seen representatives of Micah Challenge Voices for Justice here at the parliament. A number of speakers have spoken on that, and I would like to join them. Both the Asian Development Bank and Micah Challenge are about fighting poverty. I was visited by Voices for Justice representatives Jackie Knight, Rosanne Logie, Martin Bent and Maryanne Hastings. Whilst in my office, they handed me letters from constituents of mine regarding the Millennium Development Goals. I would like to take this opportunity to acknowledge the effort of Lisa Lee, Grant, Lucinda and Chelsea Cullen, Ashlyn Burton, Kylie Christie, Tamra and Jamie Richards, Dominique Telfer and Andre Golik in writing those letters. I thank them for their passion in this area and for their commitment to this cause. I seek leave to table those letters.

Leave granted.

I will conclude my contribution by saying that the Asian Development Bank has an important role to play in the development of sustainable capacity in the Asia-Pacific region. I feel that it also has the opportunity to encourage democracy, freedoms and the sorts of economies that will benefit the people of the region. I encourage it to do so. Australia has a part to play in the bank, and I am in support of our involvement with the Asian Development Bank.

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