## Developing Asia: Achieving Inclusive and Sustainable Growth with Sound Fiscal Management

_IMF News, February 13, 2020_

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**Canonical URL:** [Developing Asia: Achieving Inclusive and Sustainable Growth with Sound Fiscal Management](https://www.imf.org/en/news/articles/2020/02/13/sp021220-furusawa-jica-imf-conference)

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## Bibliographic details
- Authors: Mitsuhiro Furusawa
- Published: February 13, 2020

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### Conference context and purpose
- Welcome remarks by Mitsuhiro Furusawa, Deputy Managing Director, IMF.
- Event: Fifth IMF-JICA Conference, Welcome Remarks at IMF-JICA Conference, February 12-13, 2020, JICA Research Institute, Tokyo, Japan.
- Conference focus: sharing lessons on achieving inclusive and sustainable growth while balancing pressing investment needs for development with sustainable debt in developing Asia.
- Emphasis on prudent public financial management practices, further revenue mobilization, and improved debt management practices.

### Financing needs for the SDGs and key statistics
- The Sustainable Development Goals (SDGs) are used as a framework to assess progress toward inclusive and sustainable growth.
- Investment priorities highlighted: education, health, roads, electricity, water and sanitation.
- Key estimated additional annual spending requirements by 2030:
  - Developing countries: 15 percentage points of their combined GDP in 2030.
  - Emerging market countries: just over 4 percentage points of their GDP.
  - Emerging and developing Asian countries: 10 percentage points of their GDP in 2030.
- Conclusion drawn: "countries cannot borrow their way to achieving the SDGs."

### Findings on public spending efficiency
- IMF estimates suggest that, on average, over one-third of government investment is lost due to inefficiency.
- Illustrative example: resources budgeted to build 10 kilometers of roads will only build about 7 kilometers.
- Implication: significant potential savings are achievable through improved spending efficiency.

### Policy recommendations and priorities
- Generate more domestic tax revenue:
  - Achieved through structural reforms that support SDG objectives, including strengthening economic management, improving governance, combatting corruption, fostering transparency and accountability, and creating a sound and stable business environment.
- Spend better — improve government spending efficiency:
  - Implement public financial management reforms that support improved spending efficiency and prudent management of public resources to secure savings.
- Strengthen public debt management:
  - Boost debt transparency by providing accurate, comprehensive, and timely data.
  - Responsibility shared by both creditors and debtors.
  - Expected benefits: increased trust with investors, support for domestic capital markets, and reduced debt service costs.
- Mobilize external support where domestic resources are insufficient:
  - Domestic efforts alone are insufficient, particularly for low income developing countries.
  - Additional support needed from the private sector, donors, philanthropists, and international financial institutions.

### Expectations for the conference
- Goal: interactive, lively peer-to-peer discussion covering the highlighted issues and other important topics.
- Call to participants: share country experience and expertise during discussions.

*Developing Asia: Achieving Inclusive and Sustainable Growth with Sound Fiscal Management — Mitsuhiro Furusawa, Deputy Managing Director, IMF; Welcome Remarks, February 12, 2020.*

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## References

- [Mitsuhiro Furusawa](http://www.imf.org/external/np/omd/bios/mf.htm)
- [Japan and the IMF](http://www.imf.org/external/country/JPN/index.htm)
- [IMF-World Bank Debt Sustainability Framework for Low-Income Countries -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/imf-world-bank-debt-sustainability-framework-for-low-income-countries)
- [Speeches](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2020/02/13/sp021220-furusawa-jica-imf-conference_