MILAN, Italy, May 5. Protectionism threatens to weaken fabric of global prosperity, Fabio Panetta, governor of ADB from Italy said, addressing the opening session of the ADB Board of Governors held today in Milan, Italy, Trend correspondent reports.
“In Asia and the Pacific, remarkable progress in poverty reduction has been achieved through greater participation in international trade and a gradual move up the value-added ladder within global value chains. Reflecting this dynamism, the region contributed approximately 60% to global growth in 2024. Europe, for its part, has made great strides over the years in regional integration, the development of the welfare state, the establishment of common regulatory standards and the construction of cross-border infrastructure, including in the field of payments, which is essential for trade, growth, and financial inclusion,” he said.
Panetta noted that these achievements are the result of decades of unprecedented progress in international cooperation and economic integration that fostered prosperity, stability, and development across the globe.
“In a time of rising geopolitical tensions and conflicts, we must guard against dangerous steps backwards that could jeopardize the hard-won gains of recent decades. Peace remains the indispensable foundation for progress. Modern economies are deeply interconnected, and openness to trade has benefited both advanced and developing nations, reducing inequality and lifting hundreds of millions of people out of extreme poverty,” said the governor.
He noted that protectionism now threatens to undo these achievements and to weaken the very fabric of global prosperity.
“Geopolitical tensions are, unsurprisingly, also a central concern for the governing council of the European Central Bank, on which I have the honour to serve as a voting member. Trade barriers and heightened uncertainty are key variables we must closely assess when formulating monetary policy in the Euro area, as they affect both economic growth and the transmission of policy decisions. In this context, preserving economic integration and reinforcing international cooperation are not optional, but essential,” said Panetta.
He pointed out that multilateral institutions play a pivotal role in safeguarding openness, stability and the shared rules that underpin global prosperity.
“The Asian Development Bank stands as a pillar of the multilateral system, with its deep reservoir of development expertise, robust carrier-based and broad-based membership. It brings together regional and non-regional partners, united by shared development goals and a commitment to inclusive growth. Italy is fully committed to this mission,” noted the ADB governor from Italy.