In view of the size and heterogeneous nature of the Asian continent and the distinctive features of the subregions, there are a large number of different obstacles to development in Asia. In addition, the “Asian crisis” undermined people’s confidence in a steady upward economic trend in the region and revealed the structural problems it faces. Political, economic and social circumstances play a role in the various development problems and make sustainable development more difficult in the context of globalisation:

• Particularly rapid and uncontrollable population growth
• Long phases of stagnation and instability as a result of the transformation of society from a planned economy to a democratic economic and social order
• High potential for conflict caused by ethnic differences or by a disregard for human rights in certain regions
• Inadequate or non-existent health care and social services.

This is leading to:

• A further increase in poverty, particularly in rural areas
• Environmental degradation and overexploitation of natural resources on a scale that is jeopardising the global climate
• Serious structural differences and disparities between rural and urban areas
• Economic setbacks caused, inter alia, by military escalation of various conflicts
• Health problems and risks.

Over the past four decades, a noticeable change has taken place in many Asian countries – a change that German development cooperation has also helped shape. Support for structural reform processes or small and medium-sized industry is designed to help reduce poverty; the promotion of key education facilities and consultancy on environmental protection issues serve the same goal. Growing ethnic conflicts and the Islamisation of Asia are creating new challenges for the future. There is still a great need for consulting services, primarily for the creation and development of democratic and free-market structures.
Against this backdrop, taking account of the priorities set by the German Federal Ministry for Economic Cooperation and Development (BMZ), GTZ has identified the following regional themes for its work in the region:

• Urban development
• Global environmental policy and the conservation of natural resources
• Promotion of small and medium-sized industry
• Islam in Asia.

GTZ International Services has been stepping up its operations in the Asia and Pacific region since 2000 through contracts with various national and international organisations. Its range of activities include the areas of urban development and conservation of natural resources, private sector development, trade, health, modernisation of government and reconstruction for crisis prevention.