ADBI series on Asian Economic Integration and Cooperation – serie

Asian economies strengthened their monetary and currency management after the Asian financial crisis of 1997-1998, and came through the global financial crisis of 2007-2009 relatively well. Nevertheless, the recent global crisis has presented new challenges. This book develops recommendations for monetary and currency policy in Asian economies aimed at promoting macroeconomic and financial stability in an environment of global economic shocks and volatile capital flows. Monetary and Currency Policy Management in Asia draws lessons from crises and makes concrete macroeconomic policy recommendations aimed at minimizing the impacts of an economic and financial downturn, and setting the stage for an early return to sustainable growth. The focus is on short-term measures related to the cycle. The three main areas addressed are: monetary policy measures, both conventional and unconventional, to achieve both macroeconomic and financial stability; exchange rate policy and foreign exchange reserve management, including the potential for regional cooperation to stabilize currency movements; and ways to ease the constraints on policy resulting from the so-called 'impossible trinity' of fixed exchange rates, open capital accounts and independent monetary policy. This is one of the first books since the global financial crisis to specifically and comprehensively address the implications of the crisis for monetary and currency policy in emerging market economies, especially in Asia. Presenting a broad menu of policy options for financial reform and regulation, the book will be of great interest to finance experts and policy makers in the region as well as academics and researchers of financial and Asian economics and also economic development. Contributors: J. Aizenman, M.D. Chinn, A. Filardo, S.-i. Fukuda, H. Genberg, H. Ito, M. Kawai, S. Kim, Y. Kon, P.J. Morgan, I. Patnaik, A. Shah, S. Takagi, D.Y. Yang, F. ZhaiA Joint Publication of the Asian Development Bank Institute and Edward Elgar Publishing

In light of the experience of the global financial crisis, this book develops concrete recommendations for financial sector reform and regulation in Asian economies aimed at preventing the recurrence of systemic financial crises, improving the ability to manage and resolve crises, managing capital flows and promoting the development of Asian bond markets. The focus of the book is on longer-term structural measures. It explores areas such as the scope for regional monitoring and cooperation; deepening and integration of Asian bond and money markets; liberalization/regulation of capital flows; and issues related to macroprudential oversight, regulatory structure and cooperation as well as the role of state intervention in crisis resolution in the financial sector. The need for and impacts of regulations on innovative financial products and specific investor groups such as hedge funds, ways to reduce systemic risk of pro-cyclicality of regulation and ways to improve the infrastructure and regulatory environment for local currency bond markets are also examined in depth. The book will appeal to public and private finance experts, policy makers and decision makers in governments and banks, think-tanks and students in graduate courses related to financial and economic development. Contributors: C. Adams, J.A. Batten, Y.J. Cho, S.F. de Lis, M. Fujii, A. Garcia-Herrero, W.P. Hogan, M. Kapur, M. Kawai, D.G. Mayes, R. Mohan, P.J. Morgan, M.G. Plummer, M. Pomerleano, M.M. Spiegel, P.G. Szilagyi, L.D. Wall, A. Winkler

This book addresses the prospects and challenges concerning both soft and hard infrastructure development in Asia and provides a framework for achieving Asian connectivity through regional infrastructure cooperation towards a seamless Asia. Key topics included are: demand estimates of national and regional infrastructure in transport, electricity, information and communication technology, and water and sanitation; empirical results on the costs and benefits of regional infrastructure for economies and households; the impact of infrastructure development on the environment and climate; sources and instruments of infrastructure financing; best practices and lessons learned from the experiences of the Asian region and other regions; and experiences of public-private partnership projects.This insightful book will serve as a definitive knowledge product for policymakers, academics, private sector experts and infrastructure practitioners interested in the regional and national infrastructure demand, investment and benefits in the region. Concerned officials from private and public sectors, and other experts involved in environmental and natural resources studies will also find this compendium invaluable. Contributors: R. Adhikari, N. Banik, B.N. Bhattacharyay, H. Dick, M. Fujimura, K.-C. Fung, A. Garcia-Herrero, J. Gilbert, T. Hertel, M. Kawai, R.M. Nag, F. Ng, J. Nunez-Ferrer, P.J. Rimmer, S. Stone, A. Strutt, W. van der Geest, F. Zhai, Z. Zhang

This book addresses the prospects and challenges concerning both soft and hard infrastructure development in Asia and provides a framework for achieving Asian connectivity through regional infrastructure cooperation towards a seamless Asia. Key topics included are: demand estimates of national and regional infrastructure in transport, electricity, information and communication technology, and water and sanitation; empirical results on the costs and benefits of regional infrastructure for economies and households; the impact of infrastructure development on the environment and climate; sources and instruments of infrastructure financing; best practices and lessons learned from the experiences of the Asian region and other regions; and experiences of public-private partnership projects.This insightful book will serve as a definitive knowledge product for policymakers, academics, private sector experts and infrastructure practitioners interested in the regional and national infrastructure demand, investment and benefits in the region. Concerned officials from private and public sectors, and other experts involved in environmental and natural resources studies will also find this compendium invaluable. Contributors: R. Adhikari, N. Banik, B.N. Bhattacharyay, H. Dick, M. Fujimura, K.-C. Fung, A. Garcia-Herrero, J. Gilbert, T. Hertel, M. Kawai, R.M. Nag, F. Ng, J. Nunez-Ferrer, P.J. Rimmer, S. Stone, A. Strutt, W. van der Geest, F. Zhai, Z. Zhang

The traumatic experiences of the first half of the twentieth century helped shape the postwar global architecture, which saw the creation of the IMF, the GATT, and the World Bank. Today, this economic architecture is ill-fitted to the global economy. The balance of financial power has moved towards the emerging economies, especially those in Asia, a shift which is not sufficiently reflected in the governance of these institutions.New Global Economic Architecture addresses how a regional architecture, particularly in Asia, can induce a supply of regional public goods that strengthens the global public goods supplied through the global architecture, to promote sustainable economic development. The global network is moving towards a decentralized system with global, regional, and national institutions, and the book presents a comparison of the pace of reforms in various institutions and the identification of the reform agenda from an Asian perspective. It provides suggestions for strengthening regional institutions in Asia so they may better provide regional public goods. The evolution of institutions and policies that comprise the international monetary, financial, trade and development architecture is considered since their establishment after the Bretton Woods conference of 1944.Policymakers, academics, think tanks and practitioners will benefit from the international perspective of the book, particularly those interested in the influential Asian architecture. This book is also a useful reference tool for students of macroeconomics, development economics, international trade, and finance at both undergraduate and graduate levels.Contributors: A. Chabchitrchaidol, A.F. Cooper, H. Hill, M. Kawai, J. Menon, P.J. Morgan, V. Nehru, M.G. Plummer, F. Prada, P.B. Rana, R. Siregar, G. Wignaraja

The global financial crisis exposed great shortcomings in the global economic architecture, generating extensive international debate about possible remedies for these deficiencies. The postwar global architecture was guided by major developed economies, centered around the IMF, the GATT, and the World Bank. Today, the balance of economic power is shifting toward emerging economies. Global governance and economic policy must reflect this shift. With contributions from prominent Asian and international trade experts, this book critically examines key changes occurring in the world trading system and explores policy implications for Asia.The world trading system, led by the World Trade Organization (WTO), is under pressure to evolve and address 21st-century trade issues. Meanwhile, economically salient Asia has built deep supply chains over decades, whilst experimenting with mega-regional trade agreements and economic policies to sustain growth amid a fragile economy. The Asian-led Regional Comprehensive Economic Partnership (RCEP) and the United States-led Trans-Pacific Strategic Economic Partnership (TPP) are competing to set standards for Asia's trade and supply chains. Lessons from the Asian experience offer new approaches and economic policies to sustain growth, presenting the WTO as a forum for action to improve global and regional trade governance in the 21st century.Policy makers will benefit from the expert knowledge and policy lessons presented in this book, and development economists and researchers will profit from its critical examination of the world trading system. Undergraduate and postgraduate students interested in development, development economics, international development, and related fields will find this essential supplementary reading.Contributors: R. Baldwin, S.Y. Chia, B. Dhar, S.J. Evenett, S. Inomata, M. Kawai, P. Low, M. Nakatomi, R. Pomfret, V. Pontines, J. Tijaja, S. Urata, R. Wang, G. Wignaraja, Y. Zhang

This book analyses how closer regional connectivity and economic integration between South Asia and Southeast Asia can benefit both regions. With a focus on the role played by infrastructure and public policies in facilitating this process, it provides a detailed and up-to-date discussion of issues, innovations, and progress. Country studies of national connectivity issues and policies cover Bangladesh, India, Myanmar, Nepal, Sri Lanka, and Thailand, examining major developments in trade and investment, economic cooperation, the role of economic corridors, and regional cooperation initiatives.Thematic chapters explore investment in land and sea transport infrastructure, trade facilitation, infrastructure investment financing, supporting national and regional policies, and model-based estimates of the benefits of integration. They also identify significant opportunities for strengthening these integration efforts as a result of the recent opening up of Myanmar in political, economic, and financial terms. For the first time for these regions, the book employs a state-of-the-art computable general equilibrium (CGE) model incorporating heterogeneous firms to estimate the advantages of integration.Providing perspective on the latest thinking on integration policy, Connecting Asia is an essential resource for academics, policymakers, and business people alike.Contributors: A. Bayley, T. Chalermpalanupap, K. Cheewatrakoolpong, S. Chirathivat, M.I. Chowdhury, M.I. Corpuz, P. De, H. Florento, J.-F. Gautrin, F. Hutchinson, B. Karmacharya, R. Mishra, K.G. Moazzem, P.J. Morgan, N. Perera, M.G. Plummer, M. Rahman, P.B. Rana, S. Ray, F. Sehrin, T.M.M. Than, M. Thuzar, D. Weerakoon, D. Wignall, M. Wignall, G. Wignaraja, F. Zhai

Following rapid economic growth in recent decades, Asia and the Pacific experienced an impressive reduction in extreme poverty, but this drop was not uniform and achievements are still incomplete. Vulnerability to natural disasters, the increasing impact of climate change and economic crises should all be taken into account. There is also a need to consider the multidimensional nature of poverty and the non-uniformity of the decrease across different ethnic groups. This book explores the Asian 'poverty miracle' and argues for the development and use of an Asia-specific poverty line.This is a timely and multidimensional assessment of the much neglected issues of, and links between, poverty, vulnerability and ethnicity in Asia. It will be of great interest to lecturers and researchers of Asian development and economics, along with policymakers, public and private institutions, NGOs and international aid agencies.Contributors include: V. Berenger, S.R. Chakravarty, N. Chattopadhyay, T. Fujii, C. Gradín, L. Hohfeld, S. Klasen, J. Silber, H. Waibel, G. Wan

Sustainable and inclusive growth in emerging Asian economies requires high levels of public investment in areas such as infrastructure, education, health, and social services. The increasing complexity and regional diversity of these investment needs, together with the trend of democratization, has led to fiscal decentralization being implemented in many Asian economies. This book takes stock of some major issues regarding fiscal decentralization, including expenditure and revenue assignments, transfer programs, and the sustainability of local government finances, and develops important findings and policy recommendations. The book's expert contributors assess the current state of the allocation of expenditures and revenues between central and local governments in emerging Asian economies, and discuss their major strengths and weaknesses. They also present relevant case studies of experiences and reform measures related to strengthening and monitoring local government finance, including the implications of expanded fiscal capacity for infrastructure investment and other public spending. Covering the major Asian economies of the People's Republic of China, India, Indonesia, and Japan, among others, the book focuses on the economic incentives of transfer schemes, how intergovernmental fiscal equalization works, and how subnational government borrowing regulations could influence debt dynamics and the fiscal deficits of local governments. This book's insightful analysis will be essential reading for policymakers in Asian economies, and academics and researchers in the areas of economic development, public finance, and fiscal policy as well as development aid officials, multilateral banks, and NGOs.Contributors include: S. Barrios, S.-i. Bessho, P. Chakraborty, P. Das, Z. Fan, R.K. Goel, S. Li, D. Martínez-López, J. Martinez-Vazquez, P.J. Morgan, A. Nasution, J.W. Saunoris, P. Smoke, L.Q. Trinh, V. Vulovic, G. Wan, N. Yoshino, Q. Zhang

A decade and a half since the Philippines embarked on a major program of decentralization, the authors of this book have undertaken a detailed examination of all aspects of the nation's regional dynamics and policies. Their analysis extends to comparable experiences in East Asia, particularly China and Indonesia. The lessons of this book are relevant not only for an audience interested in the Philippines - a large developing nation with a population soon to exceed 100 million people - but also for many other developing countries now embarking on decentralization programs. The book therefore has broad international appeal.The contributors focus on three main issues:Centre-region relations. While the decentralization program in the Philippines has been reasonably successful, they argue there is an urgent need for a clear, predictable, and stable regulatory environment that governs centre-region administrative and financial relations.Infrastructure. This is arguably the most important policy tool in shaping regional development patterns, yet decision-makers are rarely able to develop these investments on the basis of a coherent and integrated policy framework. The conflict in Mindanao. This deep and protracted conflict must be resolved for the benefit of the local and national population.This enlightening and topical book will appeal to postgraduate students of economic development, regional development/science, rural development, and Asian Studies. It will also attract the interest of researchers and practitioners in international development agencies, NGOs, and policymakers and legislators in developing countries.

Poverty Strategies in Asia is an examination of a wide range of measures aimed at reducing poverty in the region.It is widely recognized that while high and sustained economic growth is critical for poverty reduction, there are other policy interventions that may also be significant in a 'growth plus' approach to poverty reduction. This volume brings together a series of case studies on the poverty impact of alternative interventions in a broad range of Asian economies. The measures examined within the book cover trade liberalization both in general and in a specific market, infrastructure investment (particularly in roads), population policies, cash transfers, microfinance, employment guarantee programs and contract farming. The countries covered include the Philippines, Lao PDR, Pakistan, India and Thailand. While the results illustrated by the contributors are mixed, they demonstrate the potential for further progress in poverty reduction.This latest joint publication by the ADBI and Edward Elgar Publishing will be warmly welcomed by scholars and researchers of Asian studies and development. Professional economists within international and bilateral development agencies and policymakers will also find much to engage them.

Analysis of infrastructure's role in facilitating international trade and consequently regional economic integration is still rudimentary. This original book fills that knowledge gap by exploring relevant concepts, measurement issues, aspects of the implementation of trade-related infrastructure facilities and their impacts on poverty, trade, investment and macroeconomic balances.Continuing the series of books produced in association with the Asian Development Bank Institute, this study explores the virtuous cycle of infrastructure investment, trade expansion and economic growth in developing Asia. Issues relating infrastructure, both hard and soft, to trade facilitation and trade costs are defined and examined, and the role of infrastructure in regional cooperation to enhance intraregional trade is analysed. Empirical estimates of trade costs in Asia suggest there is significant room for infrastructure to lower those costs further. By approaching the infrastructure-trade nexus at the regional level through cooperative activities, this study shows it is possible to increase the range of policy options and risk management opportunities.Infrastructure and Trade in Asia will be of interest to trade and infrastructure policymakers, academics at graduate and above levels involved in economic development and Asian studies as well as those in the development community interested in regional cooperation and integration.

This book analyses and draws policy implications from infrastructure's central role in lowering Asia's trade costs. Infrastructure is shown to be a cost-effective means of lowering trade costs and thereby promoting regional growth and integration. This book combines thematic and country studies, while breaking new ground in quantifying infrastructure's impact on Asia's trade costs. The contributors examine empirical estimates of Asia's trade costs and infrastructure's influence on those costs while also contributing to a better understanding of the region's logistics challenges. The book includes interesting case studies of rapid growth and congestion (in PRC), inland transportation challenges (India), port competition in an archipelago (Indonesia) and transportation modal switching as value-added rises (Malaysia) that are policy- and project-relevant in their own right. The analysis and policy implications in this book will be of interest to trade and infrastructure policy-makers and academics at graduate and higher levels involved in economic development or Asian studies, as well as the broader development community.

The 2004 Asian tsunami was the greatest natural disaster in recent times. Almost 230 000 people died. In response, governments in Asia and the broader international community announced large aid programs. The resulting assistance effort was one of the largest humanitarian programs ever organized in the developing world. This book discusses the lessons of the aid effort for disaster protection policy in developing countries.How effective was the aid? What lessons can be learnt about how to respond when disasters strike in poor countries? This insightful book addresses these questions drawing on three themes of current development policy: international aid policy; human security and the poor; and approaches to disaster risk reduction. The most important lesson is the need to `go local' in building up resilience at the grassroots level in poor countries in Asia. Other lessons include the need for better cooperation between the international community and local and national organizations as well as the need to ensure that adequate funding is provided to support disaster protection and post-disaster recovery programs while taking into account cost inflation associated with large-scale reconstruction efforts.This analysis draws on the views of local contributors from the countries most affected by the disaster. Analysts and administrators involved in disaster response activities from international organizations, NGOs and national governments will find this a unique and important resource for their forward planning. The book will also prove to be invaluable for academics and students studying disaster management and human security, international aid policy, international relations and Asian economic issues.

Managing Capital Flows provides analyses designed to help policymakers develop a framework for managing capital flows that is consistent with prudent macroeconomic and financial sector stability.While capital inflows can provide emerging market economies with significant benefits in pursuing economic development and growth, they can also pose serious policy challenges for macroeconomic management and financial sector supervision. The expert contributors cover a wide range of issues related to managing capital flows and analyze the experience of emerging Asian economies in dealing with surges in capital inflows. They also discuss possible policy measures to manage capital flows while remaining consistent with the goals of macroeconomic and financial sector stability. Building on this analysis, the book presents options for workable national policies and regional policy cooperation, particularly in exchange rate management.Containing chapters that bring in international experiences relevant to Asia and other emerging market economies, this insightful book will appeal to policymakers in governments and financial institutions as well as public and private finance experts. It will also be of great interest to advanced students and academic researchers in finance.