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Indonesia Election 2014

Igor Dirgantara

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From November 2013 to January 2014,  Faculty of Social and Politics, University of Jayabaya (UJ), periodically conducted surveys related to the electability of the political parties and the presidential and vice-presidential candidates for the 2014 elections.

The results show that the electability of the Democratic Party and the Prosperous Justice Party (PKS) have been decreasing following corruption cases. The survey was conducted in 33 provinces by taking a sample of 1225 people which have the right to vote (aged 17 years and over. or not yet 17 years old but already married). The margin of error is + / – 2.8% and the confidence level is 95%. Population Data were collected through interviews withrespondents using techniques based on the questionnaire.

When asked whether the respondents still believe that the PKS is a “clean party”, about 66% said “not sure”. Only 15.7% of respondents believe that the PKS is still a “clean party”, the rest (18.3%) did not know. When asked whether the party of which the cadres are most involved in corruption cases, as many as 67.3% of respondents mentioned the Democratic Party. PKS came in as distant second at 5.8% and has taken over from Golkar Party. which is now mentioned as third (5.2%). When I asked respondents, the party to be selected if elections wereheld today.only 6.9% would vote for the Democratic Party. Only 2.6% would vote for PKS, much lower than their result in 2009, which was 8%.

In terms of electability, the Golkar Party remained in the top position with 18.9%. When referring to the results of a survey of various other research institutions, Golkar’s chance to win the 2014 election seems pretty open. The Golkar Party is still being followed by PDI-P with a rate of 16.8% electability. Gerindra, which in the 2009 elections ended in eighth place, according to my survey electability has now reached the level of 10.3% and is in third place.

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The high electability of the Golkar Party is apparently inversely proportional to chairperson Aurizal Bakrie (ARB), which is in a fifth position as presidential candidate, at 8.7%. This is far below JokoWidodo (Jokowi) which ranks as the first public option among the most potential candidates (15,1 %).

Jokowi is a symbol of new hope for the people. He is simple, honest and populist. Jokowi is showing togetherness between the leaders and the led. “He is one of us”. Jokowi quite successfully managed to bring himself to the public with a policy in which he often visits slums in Jakarta. If in the United States (U.S.) people were disappointed with the war on terrorism of President Bush and elected Barrack Obama, it is possible that if Jokowi steps forward as a 2014 presidential candidate, Indonesian people will chose him because of their disappointment overthe war on corruption under President SusiloBambangYudhoyono during the second period from 2009 to now.

On average, respondents said they agree that if Jokowi would run for the presidency, and would not be concerned if Jokowi did not finish the job until his term as Jakarta Governor until 2017. Only 26% of respondents would not agree. Jokowi, who is PD1-P cadre.also received support from other party voters. For example, 26% of Golkar voters would choose Jokowi, as would 33.5% of Democratic Party voters, 13.8% of Gerindra voters, 35.1% of Hanura voters, 35.1%, 26.7% of PAN voters and 59.5% of PKS voters. The passing away of MPR Chairman Taufik Kiemas of the PDI-P should open the possibilities for younger party cadre, such as Jokowi in order to get a maximum results. instead of proposing the older chairperson MegawatiSoekarnoputri as candidate.

PRABOWO SUBIANTO VS JOKOWI
Jokowi electability level surpasses its competitors. The nearest is only Prabowo Subianto (13,9%). If the 2014 presidential election took place in two rounds where Jokowi would go head to head with Prabowo. But Prabowo Subianto and Gerindra Party requires extra efforts to get support from other parties to form a coalition. For that he continued his guerrilla to garner support. Of whom he had met were Hatta Rajasa, Chairman of the PAN, and Susilo Bambang Yudhoyono, the Chairman of the Democratic Party (PD). He was also diligent in communicating with a number of leaders of other parties, including the PDI-P. As a presidential candidate, Prabowo fits the bill on a number of levels. He was Megawati’s running mate in her unsuccessful 2009 campaign, and he will have learned much from that. His reputation feeds the belief that Indonesia needs a return to assertive leadership, while his association with the former first family strikes a chord among the cross section of Indonesians who feel let down by democracy and who harbour a genuine nostalgia for the Suharto era.

It would be very interesting if the two favored public figures then do not get tickets in contestation. Other figures will be born. The names that are under them will pop up, among them, Megawati, Bakrie, Hatta Rajasa, Dahlan Iskan, Mahfud MD, Jusuf Kalla, and so on. If that happens, a new candidate will emerge. Proponents of Jokowi and Prabowo Subianto will be disappointed, some will survive to follow the motion of the party, and others will move wildly following their own logic. The figures that follow PD convention will have an opportunities. Related to the Partai Demokrat’s convention, State Minister for State Owned Enterprises, Dahlan Iskhan, still chairing the convention, followed by Pramono Edhi Wibowo, Gita Wirjawan, Anis Baswedan, and Dino Patti Djalal.  It is very likely that Democratic Party will step down from their status of incumbent in the next general election of 2014. If their kept their position as the top 3, there will still be a chance to nominate their convention winner as presidential candidate – even though if they need to do a coalition with other parties. If not, then whoever picked as their candidate will only be feasible to be a potential vice president candidate.

Currently, the candidates are not dealing with incumbent or a candidate supported by the ruling party. Even the two names, Jokowi and Prabowo, come from the opposition party. There is excitement to correct public policy or seek a different atmosphere from the color of the current ruler. These two figures represent the antithesis of SBY. Jokowi is a rustic figures, common people, not handsome, simple, informal, and so on. This contrasts with SBY; handsome, elegant, charming, and formalistic. While Prabowo represent nationalistic thinking, assertive, and pro-people – at least as his speech. This is in contrast with the image of SBY who over consider the interests of the world and foreign investors, closer to the elite, and too cautious in decision making.

All of this indirectly answers the two questions at the beginning. The 2014 presidential election is not as simple as one might imagine, especially over the spread of electability numbers of various polls. The numbers are not fully pro Jokowi. Still, there is a possible rise of surprises. First, if the Court annulled the candidacy requirement of 20 per cent to three per cent. Secondly, if there is a mistake of Jokowi as governor and his supporters. The fanatical supporter’s attitude as shown in the world of social media and the birth of Pro Jokowi movement has a weak point of its own. Third, if a figure exists that could encapsulate all the expectations of the voters. Prabowo Subianto, who has a handicap in the past, was accepted because he carries this message. This expectation is also reflected in the high popularity of Dahlan Iskan and Jusuf Kalla. Still, the popularity of the President also shows that the public wants harmony, order, and decency. On the other hand, the public is still easily swept away by advertising and traditional loyalty. The color of pragmatism is a reality that remains in any society.

PROGRAM PARTY

Based on the findings the Survey, people crave the emergence of an alternative leadership figure. The people like leaders who have a love of integrity, and who are honest. clean. populist, and have a strong commitment to the reform agenda. such as the eradication of corruption. and a good track record. The people would consider a candidate who has the ability to solve national problems, especially economic problems.

Results from various surveys taken, Prabowo Subianto, electability-wise, is by far the strongest competitor for Jokowi. According to media monitoring, including social media, that the writer did, it was obvious that Prabowo – as well as Jokowi – is the leader figure that the people are talking about. Prabowo’s popularity able to counterbalance that of Jokowi’s. The public perceive Prabowo as a firm and bold figure. Not only that, he is also considered have the capability to solve Indonesia’s chronic problems, which are corruption, poverty, and security. Prabowo is being assessed as a candidate with the clearest and definite vision and mission compared to others, especially the one that related to his “Ekonomi Kerakyatan” programme, like the one of 1 billion fund policy for every village in Indonesia if he were to be elected as the next President come 2014. Prabowo clearly supported by Gerindra party as their 2014 Presidential Candidate, whereas Jokowi, who still leads other 2014 presidential candidates’ electability, at the moment still waiting for a certainty to be nominated as his party’s, PDI Perjuangan, presidential candidate, or still waiting for the official final decision to be made by the PDIP’s chairperson, Megawati Soekarnoputri. Meanwhile, the main problem for Prabowo centers on whether Gerindra will be able to breakthrough the 20 percent parliamentary threshold required, in order to avoid being forced to do a coalition with other parties and be able to nominate their own candidate(s). Moreover, nominating Prabowo Subianto as their presidential candidate is a must for them. If Gerindra able to achieve 20 percent of legislative slots, then the next strategy, which will be crucial, for Prabowo is his eye in choosing the perfect companion for the vice president position, who would be able to widen the public’s support for him.

In general, the results of the survey show several trends:
First, there is a real possibility that the Democratic Party will be replaced as the largest political party by Golkar or PDI-P. The apparently never ending internal conflicts on the alleged involvement of some party leaders in a number of cases of corruption is hijacking the Democratic Party and this could last into next year. This is not to mention the issue of dynastic politics, of which President SBY is often criticized. Therefore.the desire of the Democratic Party by the President SBY to hold the Democratic convention later in the month of July-August 2014 could be interpreted as an effort to increase the popularity and electability.

Second,  the political map in the House of Representatives will likely become much simpler due to the decreasing number of political parties that will achieve national parliamentary seats, as the parliamentary threshold is increased from 2.5 to 3.5 percent.
Third, it is possible that the largest political party will not get morethan 30 percent. so that seats are more evenly distributed over all parties participating in the elections. Indonesian voters make their choice based more on emotion. For either party with a good image or able to improve its image, there is an abundance of opportunities from swing voters. But parties of which the image is damaged by “cases”, will likely lose disproportionally. PDI-P and Golkar Party tend to have a stable electorate.

Fourth, there is the possibility that Islamic and Islamic-based political parties (National Mandate Party -PAN, the National Awakening PartyPKB , the Prosperous Justice Party – PKS. the Crescent Star Party – PBB and the United Development Party-PPP) will be eliminated in the 2014 election. Factors are public policy mistakes made by these parties, and the absence of presidential candidates or high profile leaders. The declining of electability of Islamic parties could bring about “poros tengah” (central axis) discourse a coalition between Islamic parties, considering there are still potentials of votes from Indonesian population that are mostly Muslims.

Fifth, the 2014 election is the momentum of the transition generation. Currently only the PDI-P and the Democratic Party give ample space for the emergence of young leaders in 2014. About 40-70% of the productive age group (18-40 years) who become potential voters want change in 2014. and this is reflected in the orientation and preferences of those who like the new lc,ider figures. The Democratic Candidates convention November 2013-March 2014 has a chance to end the gerontocracy (rule led by the majority of the elderly) in Indonesia. In the 2014 general election, there will be a potential of novice voters, in which most of them consist of young people and used to using the internet, as big as 40 percent of the total voters. Therefore, campaign using “cyber warrior” and social media could be the more effective way to generate their votes.

Sixth, is the tendency of those who do not use their right to vote in the upcoming election (abstentions). This is also reflected in the considerable number of swing voters, i.e. those who do not or not yet provide a political choice (undecided voters). It is also visible in a floating mass who are disappointed in the current ruling political parties and in thetransactional politics (horsetrading). The young people are seen to have the ability and integrity, and candidates matter more than political parties.

Seventh,  politics is always concerned with probabilities. Therefore, manuvers, strategy, and the choice of political party elites will remain crucial in the 2014 election beyond the limits in the program and the issues or platforms of each party. In this context, the practice of money politics will still be used to expand support, followed by highly flexible political manuevering to serve the needs and intrests of the parties and their leaders.

Igor Dirgantara is Lecturer at Faculty of Social Politics, University Jayabaya, Jakarta, and Director Survey & Polling Indonesia (SPIN).

Southeast Asia

Indonesia’s new electric car may disrupt its relations with Japan

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Authors: Muhammad Zulfikar Rakhmat, Dimas Permadi, and Ramadha Valentine

President Joko Widodo has recently signed a presidential regulation on electric cars. The regulation instructed several things, including forming a coordinating team to support the implementation of the electric vehicle program.

Jokowi hopes that electric vehicles will be able to replace fuel oil vehicles.

Due to air pollution in large cities such as Jakarta which continues to increase, Indonesia sees it important to begin using electric cars for the general public.

Jokowi also views the opportunity for Indonesia to develop electric cars because Indonesia has the main raw materials to build them. In Jokowi’s statement, he stated: “We know that 60 percent of the key to electric cars is the batteries and we have the components to make them [such as] cobalt and manganese in our country,”

To implement the agenda, the Indonesian government is likely to collaborate with various partners, including China. Although it is still a prediction, this was indicated by China’s intention to move its electric car companies to Indonesia, namely BYD Auto Co., Ltd and JIC. Moreover, Chinese car manufacturer Dongfeng Sokonindo (DFSK) also intends to produce DFSK E3 Glory cars in Indonesia which will be marketed in ASEAN. This strengthens the possibility that China will play a role in Indonesia’s plan.

China’s entry into Indonesia’s plan for electric cars could be a reasonable move and may be welcomed by Jakarta. Nonetheless, there is a potential that it may disrupt Jakarta’s long ties with Japan as its largest partner in the automotive sector.

Japan: Indonesia’s long-time automotive partner

When it comes to automotive, Indonesia has been relying hardly on Japan. As reported by the Association of Indonesia Automotive Industry, the majority of cars used in Indonesia are Japanese ones. CNN’s polling also shows that Indonesians prefer Japanese cars more than those produced by Europe, Korea, and China.

Another case which exemplifies the strong automotive ties between Jakarta and Tokyo is the Indonesian-made car “Proton” which was made under a special collaboration between Indonesia and Suzuki.

Considering the position of Indonesia as a country that has just stepped in to the business of electric cars, Indonesia seems to be very careful in involving foreign investors. Indonesia sees goods from China as relatively cheaper and of comparable quality.

In addition, Chinese companies applying for relocation in Indonesia was also considered as a serious step to strengthen the relations that had been built by the two countries.

Indonesia’s plan, which was conveyed by the Deputy for Infrastructure at the Coordinating Ministry of Maritime Affairs, Ridwan Djamaluddin, to involve China in making electric cars is likely to disrupt the stability of its long-time cooperation with Japan.

This could be true, especially if we look at how Indonesia has increasingly become a battleground between Beijing and Tokyo such as in the recent bidding for the construction of a railway between Jakarta and Bandung, whereby China succeeded in winning the bid. Japan, which has made a number of preparations to obtain Indonesia’s permission to participate in the project, feels disappointed as expressed by its Chief Cabinet Secretary, Yoshihide Suga.

Looking at this, electric cars can be another battleground between Japan and Indonesia.

Indonesia may take careful steps

To this date, it remains unclear whether Japan or China who will have a considerable take in Indonesia’s move towards electric cars.

Nonetheless, in the midst of the potential rivalry between Beijing and Tokyo, Indonesia may take careful steps. The government in Jakarta will try to ensure that it would not hurt the two sides. It is likely to weigh the interests and opportunities of both parties.

On the one hand, it needs to maintain close relations with its long time partner in the automotive industry, while on the other hand it sees considerable opportunities in cheap Chinese raw materials.

The three authors are analysts on Indonesian political economy

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Southeast Asia

China-Indonesia relations are expected to grow during Jokowi’s second term

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Authors: Muhammad Zulfikar Rakhmat, Ramadha Valentine and Dimas Permadi*

The relationship between China and Indonesia seems to be increasing, especially in the field of trade economy, this is evidenced from the trade figures between the two countries which have reached 45.3 million. The relationship between the two countries is mainly focused on three sectors which include trade and business, politics and security, and people to people exchange. Some agreements also appear to have been agreed by both parties along with the increased visits of the two state actors in turn.

With the election of Joko Widodo in the second period recently, cooperation between the two countries is likely to increase.

Why?

To date, Indonesia has accepted 28 joint projects with a value of $ 91.1 billion, under the guise of the BRI. The projects include the Sei Mankei special economic zone; phase two for Kualanamu airport; clean energy development in the Kayan river in North Kalimantan; the construction of a special economic zone in Bitung, South Sulawesi, and Kura island in Bali. These projects were carried out by private parties from Indonesia and China.

The latest, Indonesia has also signed another BRI cooperation package in April 2019, which contains 23 cooperation packages in investment and trade projects. The cooperation package include the development of four economic corridors, the high-speed train and technology development project, and the development of education. The 23 projects have produced investment value of US $ 14.2 billion.

Several projects by China have not yet been fully realized in Indonesia. The projects that were initiated in the BRI collaboration still found obstacles such as budget and license. The realization of the budget in the amount of 50 billion USD has only touched the 3 billion USD figure, which means that some projects have not yet been implemented.

For this reason, China is expected to make maximum efforts to meet the target projects that have been initiated previously. This will also help China in covering up the issue of project failure faced by Indonesia and published by several international and national media.

Moreover, China’s expected efforts to accelerating the BRI project is in line with its goal to realize the BRI in 2049. That year was chosen along with the 100th anniversary of the founding of the People’s Republic of China. Indonesia’s territory which is quite strategic has become one of China’s attractions in making Indonesia one of the important routes for its BRI.

With some of the above explanation that some BRI projects have not been fully realized, these two things reinforce the reasons for China in accelerating the BRI project in Indonesia.

In addition, Jokowi’s previous leadership period focused on infrastructure investments. This can be seen with several Infrastructure projects that are currently being implemented in several regions of Indonesia. Nonetheless, these infrastructure projects have not yet been fully achieved, especially during the recent transition period whereby the government has been occupied with other issues.

In this context, Jokowi may see the BRI as opportunities for the Indonesian government which has a vision of equitable development in the country. Collaboration under the BRI is seen to benefit the Indonesian government in realizing its infrastructure development in the near future.

Recommendations for both

2To reap the full benefits of the expectedly growing China-Indonesia relations, there are several steps that should be taken by Indonesia and China. The Indonesian government should learn how other countries in Asia, such as Pakistan, Sri Lanka, Bangladesh, the Maldives, Kyrgyzstan, Tajikistan and Laos. They are countries that received investment from China that ended in a debt trap project, whereby they all had to give up all assets that had been financed from the Chinese project.

One example is how Malaysia renegotiated the BRI project, because Malaysia felt disadvantaged by the BRI project cooperation agreement. As a result, the projects’ costs are reduced from the initial agreement fee. Studying Malaysia’s policies, the Indonesian government should be aware of Indonesia’s position in cooperation with China, that Indonesia has a fairly high bargaining position. Because China needs Indonesia to achieve its economic goals in the BRI project, which would not have been possible without Indonesia.

In recent years along with the commencement of the BRI, China has made several efforts as a self-branding tool that aims to build its good image. In Indonesia, China began to introduce its country through various ways, one of which is cultural efforts such as through media and cultural efforts. However, this does not seem able to change the sentiment because the efforts are still limited and not widely implemented. To this date, negative perspectives on Chinese foreign investment is still found among the people who are contributing to the policy making of the Indonesian government.

In fulfilling its vision, China is expected to be able to use soft-power in building its image in ensuring its investments provide benefits that can boost national economic growth.

*Ramadha Valentine and Dimas Permadi are analysts on Indonesian political economy

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Reducing gender gaps in Asia and Pacific essential to realizing region’s potential

Ingrid van Wees

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Over the past two decades, the Asia and Pacific region has made progress in reducing gender gaps in certain areas, most notably education. According to the World Economic Forum’s 2018 Global Gender Gap Report, 6 out of 25 developing Asian countries had attained gender parity in education. In 12 out of 18 Asia Pacific countries analysed in the Report, women outnumber men in tertiary education enrolment rates. 

However, these improvements in skills and professional training for women have not translated yet into progress towards equal economic and professional clout. 

Gender gaps persist in labour force participation, gendered-segregation of the labour market, financial inclusion, and representation in senior managerial positions across the corporate world. This is the only region in the world where the labour force participation rate of women is declining. Meanwhile, a growing body of research on the future of work in the region has highlighted the high concentration of women in informal and vulnerable work, and that the bulk of unpaid care work is disproportionally being carried out by women.  

Female participation in the labour force in 2018 ranged from 60.1% in East Asia at the top end of the spectrum to only 25.9% at the bottom end in South Asia, according to the International Labour Organization (ILO). When women do work, they are often segregated into “feminized” sectors, where wages are typically lower. Wages are not yet equal. In developing Asia, the gender wage gap (75%) is lower than the global average of 79%
    
Women’s share in managerial positions across Asia varies significantly. In the corporate sphere, three countries in this region are among the top 10 economies worldwide with women in senior management positions, higher than the global average of 25%. They are the Philippines at 39%, Thailand at 37%, and Indonesia at 36%. On the other hand, there are countries in the region at the lower end, for example Japan with only 7%.  

Women’s representation on corporate boards is even lower than at the managerial level.  This ranged from 11.6% in Indonesia to 1.9% in South Korea. In 2011, India and Malaysia established 30% mandatory gender diversity quotas for senior management and board positions in corporations. However, implementation has been slow. As of 2016, women accounted only for 8.6% on corporate boards in Malaysia and 5.2% in India.  

Banking at the most senior management level in particular remains male territory in the region, since the share of female representation at this level reached only 6.9% on average, according to data gathered by the Financial Times.

While developing countries in Asia and Pacific are embracing new financial technology to make rapid progress on financial inclusion, the gender gap is felt here too. Women accounted for just 35% of bank depositors and borrowers in these countries in 2016. 

Increasing women’s participation in the workforce and closing the wage gap would have a tremendous growth impact for the region. ILO in 2017 estimated that this could add $3.2 trillion to Asia and Pacific region economies.

Increasing women’s access to finance can have life-changing impacts on not only their lives, but those of their families and communities. For example, women-led small and medium-sized enterprises in Sri Lanka are benefitting from facilitated access to credit to grow their businesses through an ADB project, which has been further supplemented by a grant from the Women Entrepreneurs’ Finance Initiative (We-Fi). Since last year, over 323 women’s businesses,  employing 3,934 people, have financially benefitted from the project. 

Financial institutions targeting female clients will be more successful at understanding and responding to customers’ needs if their personnel mirrors the market. Including female professionals and managers in research product selection and marketing will lead to better custom-tailored products.  That is one reason why ADB’s Trade Finance Program has been running a gender initiative to support its participating banks to improve its workplace gender equality/family-friendly policies.

There is growing evidence that gender equality in management and leadership results in higher productivity, more diverse decision-making, and better and more sustainable results. This is particularly true for female leaders in the banking sector. A study by the International Monetary Fund recently found that a higher share of female senior leaders is associated with greater stability and more prudent management. 

Moreover, it is true for any type of organization that effective women leaders provide positive role models and contribute to changing social perceptions about women and girls.  Policymakers and multilateral development banks like my own must lead by setting good examples, and work with the banking sector to address the gender gaps. 

On its part, ADB is committed to accelerating progress in gender equality in its developing member countries. And it is championing the cause within its own institutional structure and corporate culture.

Among other sectors, ADB supports various projects with a gender focus in such areas as technical and vocational education and training, urban and water, rural development, transport, and renewable energy. It has also provided technical assistance for legal and judicial reforms in support of gender equality, as well as women’s leadership within government and communities at all levels.

Last year, 56% of ADB’s sovereign and nonsovereign lending at entry had strong gender design elements. ADB is setting even higher standards for itself. In July 2018, ADB’s Board of Directors approved a long-term corporate strategy called the Strategy 2030. Under this, ADB aims to ensure 75% of its projects in the public and private sector will include gender designs by 2030. 

Strategy 2030 sets gender equality and women’s empowerment as one of its operational priorities for the next decade. ADB will promote women’s economic empowerment by expanding entrepreneurship opportunities for women and promoting their access to quality jobs in higher-paying sectors and the science, technology, engineering, and mathematics sectors where women struggle to enter. 

ADB’s approach is also informed by a recognition of the importance of tackling discriminatory social norms and institutions. It includes  supporting legal, institutional, and governance reforms at public level to explore measures are carried out to remove gender-based discrimination, enhance women’s participation in public resource allocation, and support leadership at all levels

Another major thrust is reducing the domestic responsibilities faced by women through improved water, electricity, and transport infrastructure. In the Asia Pacific, women spend from 2 to 11 times more time on unpaid care work (caring for family members, cooking, cleaning, fetching water, etc.) than men. That time spent represents an important barrier to pursuing economic pathways.

In 2016, ADB Management took bolder actions and set higher targets to improve workplace gender balance by enhancing recruitment of talented women, career management, training, development, and retention of female staff within ADB. ADB also has a gender target for various levels of management that is closely monitored and transparently reported upon. Leadership development programmes are now being conducted to prepare women for senior positions and enable senior staff to become better managers of diverse teams. 

Gender equality will indeed be at the heart of ADB’s priorities under Strategy 2030 and across the institution. 

On a wider scale, women’s empowerment is not just an objective in itself; it is essential to achieving inclusive and sustainable development in Asia and the Pacific. Given the economic, environmental, and technology challenges facing society in Asia and Pacific, it is about time to utilise the ingenuity, creativity, and energy of the region’s entire population. To do this, countries must fully engage women; and educate and empower them to allow for their contribution. At the same time, we should ensure we include, educate, and equip all men and boys for this transition to make this journey together and leave no one behind.

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