Successful economies will be those that reduce energy use, innovate and take risks, Kuroda said in his address at the Asian Development Bank`s (ADB) annual meeting here. They would focus on transforming themselves through growth that is inclusive, green and knowledge-led, he said.
"Growth in the Asia and Pacific region is strong, but growth alone is not enough for the region to succeed in an era of global change," Kuroda said adding, "the world is experiencing a fundamental transformation...now is the time to push through with greater reforms to support the region`s long-term growth".
Although Asia accounts for about 30 per cent of global output, the developing Asia still faces many challenges, he added.
Citing initiatives in clean and renewable energy, sustainable resource management and conservation of critical ecosystems, Kuroda said, "Asia is rapidly becoming a global leader in green investments, which are themselves becoming an engine of growth in the region."
He emphasised upon the need to build "livable, inclusive, environmentally sustainable cities" to deal with the challenge of rapid urbanisation. In addition to inclusive, environmentally sustainable growth, he said that developing Asia must embrace knowledge as a key development strategy.
To move up the value chain, Asia needs institutional governance and regulatory frameworks that will foster investment in research and development, protect intellectual property rights, offer incentives for innovations, and stimulate competition, Kuroda said.