A significant recent development has been the adoption by ADB of an overarching goal, that of reducing poverty in Asia. Reducing poverty has of course always been a goal of the Bank, but it was only in October last year, under the direction of ADB President Tadao Chino, that our Board of Directors formally adopted a poverty reduction strategy. This policy shift is affecting every aspect of our operations, and it entails a commitment that at least 40 percent of our public sector lending will be devoted to poverty interventions. The region's future economic growth and prosperity and the fight against poverty are directly linked to our ability to address the complex pressures and problems facing cities across Asia.
Cities are, in many ways, engines of economic growth and social progress.
However, without adequate public and private sector investments in urban infrastructure, municipal services and housing, the productivity and competitiveness of Asia's cities in the world economy may be over time be seriously impeded. Equally essential is the need to strengthen existing institutional and human resource capabilities in urban management and planning. Upgrading the skills of urban managers and policymakers is closely linked to the long-term sustainability of urban investments and interventions. Ultimately, the economic development potential of cities is not only a function of location and production circumstances. It is a function too of the quality of governance, efficiency of public services, and support for entrepreneurial enterprise.