MILAN, Italy, May 5. Ambitious structural reforms needed to enhance growth potential of economies, Giancarlo Giorgetti, Minister of Economy and Finance of Italy said, addressing the opening session of the ADB Board of Governors in Milan, Italy, today, Trend correspondent reports.
“We are eagerly witnessing the biggest shift in the global economic landscape in recent decades, with major implications for financial markets, trade, inequality, and growth patterns across the globe. Major changes are underway. Risk-related conflicts and geopolitical tensions are rising. A wide range of uncoordinated policies are being deployed at increasing pace, with consequences that are hard to predict,” he said.
Giorgetti noted that the sharp increase in policy uncertainty is delaying business practices and investment and household consumption.
“Financial institutions are reassessing their borrower service projects. Against this background, we need strong and coordinated policy actions, including those aimed at a clearer, more stable, and predictable trading environment. This enhanced collaboration would support higher and sustainable long-term economic growth, averting downsized risks and mitigating their possible consequences.
We also need to do our own homework, pursuing well-calibrated microeconomic policies and tackling long-term challenges by ambitious structural reforms, enhancing the growth potential of our economies,” said the minister.
He believes that at the same time, it might be time to rethink globalization as we know it.
“While it may be true that the global economy has benefited from trade liberalization, it is also true that the fruits of this process have not always been evenly distributed among nations and among the various production factors within each nation. We are being called upon to face this reality, as this all poses an objective risk in terms of economic security.
We should aim to achieve a fair and rules-based, not only a free and open trading and economic system. Direct, constructive and transparent cooperation within the scope of multilateral mechanisms with common principles and shared rules are key factors to address the issues of common interest and to reduce uncertainty,” he said.
Giorgetti went on to add that international gatherings, such as this annual meeting of the Asian Development Bank, celebrate this fundamental purpose, which goes well beyond fulfilling statutory requirements.
“As a leading multilateral development bank and trusted partner in Asia and the Pacific, throughout its history, ADB has been working to solve complex challenges together with its members and parties, both regional and non-regional. It is fitting that this year's annual meeting takes place in Italy and in Europe. This is an opportunity to build bridges across nations and across continents,” he said.