ADB head warns on high oil price

Talking at the start of the Asian Development Bank's annual event, Haruhiko Kuroda said producers and consumers needed a "suitable price".

The region's economies have grown by 7.4%, and are set to grow by 7.2% in 2006, the ADB says.

But oil, which has been hovering around $75 a barrel, could counter this trend.

India, which imports 70% of its oil, has been badly hit by the rising price, but has been unable to increase prices due to pressure from countries such as China.

The comments echo findings by the International Monetary Fund issued earlier in the week in its annual report on the region.

Poverty

More than 2,500 delegates from 65 countries are attending the four day meeting, which is taking place in India's booming technology hub, Hyderabad.

In addition to the rising oil price, regional economic integration and the need for better infrastructure are also all on the meeting's agenda.

"Delegates will be looking at how to address poverty in the context of these challenges," said Mr Kuroda.

The hardest problem the bank faces, he said, is how to close the gap between rich and poor and ensure the poor benefit from economic growth.

In an attempt to address environmental concerns, the bank announced it would be offering $1bn (£544m; 791m euros) to member countries for clean energy projects.

Role reassessment

The ADB, like other multilateral lenders such as the World Bank and the IMF, is having to reassess how it addresses the place of developing countries within the global economy.

Some critics think the bank has been ignoring the needs of the poor.

Outside the event, more than 1,000 protesters have lined the streets to oppose policies of the ADB and other lenders.

"The ADB, like the World Bank, has become the custodian of private investment and the promoter and protector of corporate interests and profits," said Gururaja Budya, a representative of campaign group the People's Forum against the ADB.

Given its members' disparity in size and economic power - from small, poor countries such as Nepal to giant economies such as India and China - the ADB has sometimes found consensus difficult to achieve.

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