Devex Newswire: Will 2023 shift power in development toward Asia?

It’s a new year, and whatever happens, it promises not to be a boring one. Read our interview with the chief economist of the Asian Development Bank on the region’s view on development — and how it’s different from the way the West sees things. Also in today’s edition: Some news on divides between Brussels and Washington over development, and new IMF warnings on recessions. Central Park The chair of the Group of 20 leading economies is staying in Asia this year, moving from Indonesia to India, and the Group of Seven will be headed by Japan. In all, 2023 is shaping up to be a year that will put Asia in the spotlight. I sat down recently with Albert Park, the chief economist of the Asian Development Bank, to get some insights into what 2023 will bring for the region, a key powerhouse of global growth at a time of uncertainty. One big takeaway was a reminder that while Washington is the center of many things, it is not the only place that matters. Case in point, the divide between Asia and the United States on multilateralism, Park said, noting that in his view the region is now more focused on global cooperation. “I think this is a very sincere perspective of many emerging and developing countries. They want to have an orderly global environment, multilateral frameworks, so they can get on with the task of development,” he told me. He noted that we still lack good data on what the pandemic meant for the fight against poverty, and countries in the region are determined to focus on economic growth, especially as they face strong headwinds from the Russian war in Ukraine and China’s COVID-19 policies. One big regional shift to keep an eye on is climate change. Park notes many countries are moving quickly toward net-zero commitments and are seeking to transition from coal. ADB itself is moving more into the space, with the goal of reaching $100 billion in climate related loans by 2030. Read more: Asian economies shun global ‘political divisions’ as they chase growth (Pro) + Not a Devex Pro member yet? Start your 15-day free trial now to read the piece. Not shielded from criticism When the 27th United Nations Climate Change Conference of the Parties wrapped up in November, it was clear the crowning achievement of the summit was the announcement of the “loss and damage” fund, a form of climate reparations. But, as my colleague William Worley reports, a slew of other climate funds have popped into existence, including The Global Shield against Climate Risks, a disaster risk financing initiative. Will’s article clearly explains that campaigners are worried that the Global Shield will not only steal the thunder of the broader loss and damage fund but also vacuum up available money. “Donors will either put money into the global shield or the loss and damage fund,” says Emily Wilkinson at the ODI think tank. What’s more, high-income countries may be able to exert more control over the shield, giving them a greater say than lower-income countries. Also, the shield does not cover many climate-vulnerable middle-income countries. DevExplains: Is the Global Shield stealing thunder from loss and damage funding? (Pro) + Read more DevExplains on various topics. Regional road warriors For anyone who’s followed trade in Africa, you’ll know that leaders have stressed over and over that a key to boosting development is integrating commerce on the continent. So, the Millenium Challenge Corporation signing its first regional compact — a five-year grant agreement to improve the trade corridor between Benin’s port of Cotonou and Niger’s capital Niamey — is a big deal. “This is not just about a road. It’s really about their trading and economic future,” MCC CEO Alice Albright tells my colleague Adva Saldinger. Albright also notes how surprising it was for MCC to get a prominent stage at last month’s U.S.-Africa Leaders Summit, which Adva covered in detail, by the way, so check back on her stories. The regional compact deal gets $504 million from MCC, which hitherto had only supported deals in a single country. Benin and Niger are each contributing $15 million to the project. Read: First MCC regional compact aims to improve Benin-Niger trade corridor In data we trust Robust and trustworthy data is vital to the fight against the re-emergence of infectious diseases such as cholera, tuberculosis, and polio. But lesser-known diseases also need data if we are to save lives, writes Caleb Mpyet, a technical trachoma adviser for Sightsavers. His work on fighting trachoma, a bacterial infection that causes blindness, has yielded three key insights, which Mpyet shares in this opinion piece for Devex — relevant findings for anyone working with data. Opinion: Data we trust is a vital weapon as diseases gain ground An ocean between us As recently as October, the United States and Europe were touting plans to “increase their collaboration” on boosting access to green energy in Africa. But transatlantic relations soured at the end of last year over the Biden administration’s subsidies for electric vehicles and clean energy. And now, it’s spilling over to development policy, making the fallout a factor my colleague Vince Chadwick will be watching closely this year. He tells me he is getting the popcorn ready. Jutta Urpilainen, the commissioner responsible for the European Union’s development policy, told Politico that in 2023, geopolitics will be shaped by “increasing competition between partners.” “In addition to our rivalry on values with China and Russia, we will also compete with our friends to help our industries lead the twin transition in green and digital,” Urpilainen said. What’s ahead The International Monetary Fund is sticking to its grim messaging as we move into the new year. “We expect one-third of the world economy to be in recession,” IMF chief Kristalina Georgieva said in an interview that aired on New Year’s day on CBS’ “Face the Nation.” “Even countries that are not in recession, it would feel like recession for hundreds of millions of people,” she added. This hints that IMF, which already downgraded its global growth forecasts for the year, might do so again when it releases its next update, timed for the World Economic Forum in Davos; it kicks off on Jan. 16. Devex will be at Davos and reporting this month, so stay tuned, and be sure to register to be invited to our events in Davos. In other news Malawi suspended the start of the school year due to a cholera outbreak that has killed nearly 600 people. [BBC] The World Bank is proposing a capital increase and new lending tools as part of an "evolution roadmap" to address climate change and other world crises. [Reuters] China’s state media has minimized the severity of the COVID-19 wave sweeping the nation prior to its scientists briefing the World Health Organization on the evolution of the virus. [Yahoo News] Sign up to Newswire for an inside look at the biggest stories in global development.