Real income of developing Asia can reach $13 trn in 10 yrs: ADB

Real income of developing Asia can reach a whopping $13 trillion in the next 10 years, if an investment of $8.3 trillion is made to develop pan-Asian connectivity by transport, communication and energy, an ADB study today said.

The study undertaken by the Asian Development Bank (ADB) along with Asian Development Bank Institute (ADBI) said that Asia's diversity is its strength, which provides opportunity for trade investment and economic growth.

But without good connectivity "diversity breeds disparity rather than prosperity," it said.

Making presentation about the study here, ADBI CEO Masahiro Kawai said, "the investments in building infrastructure in Asia would form an important part of fiscal stimulus packages, especially if the global economy has a double-dip."

The study said that the global financial turmoil and the resultant economic downturn are still unfolding. "If the current crisis is prolonged, demand from advanced economies will remain stagnant, thus depressing Asia's production."

He said that region's vast domestic savings can serve as the main source of financing for the continent's infrastructure.

Cuts in infrastructure investment that jeopardise future recovery should be avoided. Therefore, the need to upgrade and extend infrastructure networks over the time frame of 2010-2020 assumes greater importance, he said.

An Asian infrastructure fund is needed to mobilise international funds (public and private) and help prioritise prepare and finance bankable regional infrastructure projects, he added.