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 in Milan, Italy, Trend 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.