Feature Archive 2009

Rebalancing Growth in East Asia: Policy Brief

Asia has staged an impressive turnaround in 2009, but it is unclear whether the recovery can be self sustaining even if the US and Europe fail to pull themselves out of the current recession. Read about the impact of the global crisis on emerging Asia and reforms needed to return East Asia to the path of pre-crisis growth. Download the paper.

Lessons of the Crisis for Emerging Markets

What was the impact of the global financial crisis on emerging markets, global trade and financial architecture, and monetary, fiscal, and exchange rate policies? The author concludes that, while the system will evolve, the crisis is unlikely to occasion fundamental changes in the structure of the international monetary system. Read the paper and post a comment.

Effects of Social Policy on Domestic Demand

Can improved social protection policies help reduce savings in Asian countries and induce a long-term increase in consumption spending? ADBI’s annual conference analyzed the relationship between social protection policies and household income and savings to draw conclusions for rebalancing growth in Asia. ADB President Kuroda gave the opening remarks.

The Global Economic Crisis: Impact on India

The global crisis has affected India's financial markets, trade flows, and exchange rates. This paper reviews India's experience of the global financial crisis and offers recommendations on how India can regain its GDP growth potential of 8-9%. Download the paper.

• Read more papers about the global financial crisis

The Future of East Asian Computer Exports

For the last 15 years, computers have been the leading export category from East Asia to the rest of the world. A new study reveals that if global growth remains slow, computer exports may no longer remain an engine of growth unless demand for final goods in the region increases. Read more.

ADB, IDB to Work More Closely to Strengthen South-South Links

ADB president Haruhiko Kuroda and Inter-American Development Bank president Luis-Alberto Moreno signed a partnership agreement and MOU on 9 November in Tokyo that will see the two institutions work more closely in areas ranging from trade facilitation and regional cooperation to climate change. Read more.

Asia in Global Governance: A Case for Decentralized Institutions

The global economic crisis refocused attention on the governance of international economic institutions. This study highlights structural obstacles to reform in international macroeconomic management, development finance, trade, and financial stability. The authors propose transforming these institutions by shifting more decisions from the global to sub-global level. Read the paper.

Proceedings of ADBI's Annual Conference 2008

Given the current economic uncertainty surrounding the recovery of global markets, the book presents a timely look at Asia’s priorities and challenges as it seeks to balance the development of more robust regional markets with greater global engagement and contributions to global economic stability, the global trading system, and global welfare. Download the book.

Journalism Winners 2009

Winners of the 2009 Developing Asia Journalism Awards were announced on 23 October in Tokyo. Imelda Abano (Philippines) was named Development Journalist of the Year, while Supriya Khandekar (India) won the Young Development Journalist Award. There were also prizes for four thematic categories. DAJA recognizes excellence in journalistic reporting by those covering development issues in the region. Meet the winners.

Thailand's Growth Rebalancing

Thailand, being highly dependent on exports, is now heavily affected by the indirect impacts of the subprime crisis with exports and GDP dropping sharply this year. In the medium- to long-term, the country needs to depend less on exports and more on domestic sources of growth. Read more.

Why was Japan Hit So Hard by the Financial Crisis?

Even though not directly exposed to subprime assets, Japan felt the full impact of the global financial crisis—especially in its drastic drop in exports. This paper investigates why the structure of Japan's trade accentuated the effects of the global financial crisis and suggests policies to dampen effects of trade shocks in future. Read more.

Cash and Non-Cash Payment Systems in Indonesia

With the development of e-money, Indonesia is moving toward a paperless payment system. But any benefits arising from technological advances to the payment system, such as access in remote areas, remain an issue for small- and medium-sized enterprises. Read more about making the payment system more inclusive.

• See related article on payment systems in Malaysia

New Flagship Study on Infrastructure

Between 2010 and 2020, Asia will need to invest $8 trillion in overall national infrastructure for energy, transport, telecommunication, water, and sanitation, and $290 billion in regional infrastructure a new book "nfrastructure for a Seamless Asia" says. This is the first time that such a study on regional infrastructure has been undertaken. Download the book.

• Read about the ADB/ADBI flagship study on infrastructure and regional cooperation

Economic Growth and Poverty Reduction

Around the world, the general experience is for economic growth to be accompanied by falling poverty. But there are widely differing patterns of growth and accompanying poverty reduction across Asia and between Asia and the rest of the world. Read more.

Global Crisis Impacts Asian Banking System

Asia entered the global crisis in good economic and financial shape. But over the next 12–18 months, banks will face traditional credit risks from the economic downturn, resulting in an increase in nonperforming loans, provisions, a decline in earnings, and losses. Find out more.

Korea's Economy in the Swirl of Global Crisis

Korea was severely hit by the global shock in late 2008 as exports dropped and capital outflow soared. But a study predicts that in contrast to how Korea coped during the 1997–1998 Asian crisis, the economy will remain robust. Read more.

• See more about ADBI's global financial crisis project

Microfinance for Reducing Poverty

Microfinance is a powerful tool for reducing poverty. But the challenge of achieving greater financial inclusion remains daunting as 60% of Asian households do not have access to formal financial services. ADBI held a workshop on how the world of microfinance is adapting to the global financial and economic crisis. Read more.

• Visit Microfinance Training of Trainers course website

How Do Japanese Firms Use FTAs?

Successful implementation of free trade agreements is becoming urgent for Japanese firms as they expand overseas. This study investigates how FTAs affect the behavior of firms and their overseas operations and the impacts of different tariffs and rules of origin on Japanese exporters. Read more.

Which Way Forward for Asia's Trade Policy?

With the current impasse in the WTO Doha Round, free trade agreements (FTAs) have become Asia's main trade policy instrument. This has sparked concerns about the negative effects of Asian FTAs including the "noodle bowl problem". This study examines the challenges posed by Asian FTAs and provides a pragmatic approach to minimizing their costs while maximizing their benefits. A bottom up approach to a Doha Round Agreement emerges from the paper. Read more.

America's Financial Crisis: The End of an Era

The current financial crisis began in the US, but has spread to the rest of the world economy. As with past crises, the current downturn will end and the economy will recover. But there will be a major regime change, altering the future shape of the US and global economies. Read the new paper on this topic.

Impact of Policy Measures on the Poor

Poverty studies usually examine the impact of policy reforms on the poor in general. However, policy changes have varying consequences across different segments of the poor. A new paper shows that by stratifying households according to income source, more precise measures of the poverty impacts of reform programs can be obtained. Download the paper.

Adapting to Climate Change

Climate change is real and adapting to it is an urgent issue for developing countries as they will suffer more from natural disasters such as floods and droughts. Adaptation requires immediate action in the key sectors of agriculture, water, natural resource management, and health. An ADBI workshop focused on effective ways of mainstreaming adaptation in the least developed and small island states. Read the summary, papers, and presentations.

Market-Based Approaches to Environmental Management

Landowners usually don't receive compensation to manage forests and vegetative cover. But payments by ecosystem service users to owners can help make conservation efforts more attractive. Eight case studies from Asia give examples of developing reward mechanisms for environmental services provision. Read the study.

Korea's Aging Crisis

Korea's rapidly aging population and low birth rate have resulted in two major policy challenges—improving the old age income security system and improving the financial sustainability of the public pension system. “Demographic Changes and Pension Reform in the Republic of Korea” provides an overview of reforms to Korea's Pension Act, assesses the effects of the reforms, and suggests policy improvements for the future. Download the study.

Safe and Efficient Food Supplies

Food safety is a growing concern worldwide. Tracing food through the production and distribution chain is critical for the food industry and for the public. This paper reviews the use of technology to create efficient traceability systems and make information easily available to consumers. Read the paper and post a comment.

Restoring the Asian Silk Route: Toward an Integrated Asia

The ancient Silk Road was once the world's most important cross-border artery. A new study argues that as trade and investment are once again flowing rapidly between Asia and other parts of the world, a modern or restored Silk Route is needed to help Asia meet its full potential. Download the study.

So Much Information, So Little Time

E-newsline is a daily roundup of Asian development issues presented in an easy-to-digest format. Ten news summaries with links to the original source are published daily. E-newsline includes a weekly feature "Poverty Spotlight" taking you into the backstreets of Asia. Subscribe now.

PRC-Latin America Economic Cooperation

Trade and investment ties between the PRC and Latin America are still in their very early stages. A new study argues that these economies need to move beyond their traditional focus on resource complementarity to more dynamic, foreign direct investment-based intra-industry trade. Download the study and post a comment.

Asia must look for new drivers of growth

As Asia's export markets will take time to recover from the ongoing financial crisis, the region needs to look for new drivers of growth such as expansion of domestic and regional demand, experts said at a recent ADBI conference. Read the conference summary and download the presentations.

The Asian "Noodle Bowl": Is It Serious for Business?

Are free trade agreements harmful or beneficial for East Asia's business? Providing evidence from surveys of 609 firms, a new study suggests that the Asian noodle bowl of overlapping free trade agreements has net beneficial effects in terms of regional liberalization and a building block to multilateral liberalization. Read the study.

Entries Open for 2009 Journalism Awards

Our program to recognize journalists covering development trends and the impact on countries and people in the region is now open. This year we focus on (i) poverty impact of the global financial crisis, (ii) government responses to the global financial crisis, (iii) infrastructure development, and (iv) climate change adaptation. Journalists can submit entries using the online application system. Read the announcement.

Toward a Seamless Asia

What are the challenges confronting seamless connectivity in Asia? What are the costs and benefits of regional infrastructure? How can Asia meet its financing requirements for developing infrastructure? What are the priority regional infrastructure projects? A new flagship book Infrastructure for a Seamless Asia examines these questions for the first time. ADB President Kuroda launched the book at ADB's Annual Meeting.

Toward a Seamless Asia

What are Asia's infrastructure financing needs? What are the challenges to achieving seamless connectivity in Asia? What are the priority infrastructure projects from now until 2020? A new book Infrastructure for a Seamless Asia examines these questions and panelists will debate them at a book launch at ADB's Annual Meeting on 4 May.

Global Financial Crisis: Impacts, Lessons, and Growth Rebalancing

Asian exports, equity markets, currency and credit markets are affected by the global economic downturn. The Impacts, Lessons, and Growth Rebalancing conference will focus on the macro impacts of the crisis, including employment, lessons from previous crises, and how to move away from dependence on exports to developed countries.

• Read about ADBI's global finance crisis project.

Stress and Risks in PPPs

A country's capacity to undertake public-private partnerships (PPP) depends on the macroeconomic environment, legal and regulatory regimes, and whether or not government and the private sector can agree on the allocation of risks. A new study analyzes the determinants of stress in (PPPs) in infrastructure investment. Read the study.

Investing in Infrastructure

Do infrastructure investments aimed at lowering trade costs lead to lower freight rates? Does the high cost of long-term infrastructure development dampen investment? A recent paper addresses these questions and shows that using an alternative transport mode does not always lead to lower access charges.

Tackling the Global Financial and Economic Crisis

East Asian countries need to take a collective approach to the current global economic crisis while developing long-term policies that secure sustainable growth and help cushion them against future financial shocks, says a new report released by ADBI for the Asian Policy Forum. Download the report.

• Read the summary of recommendations to East Asian leaders for the G20 meeting.
• Read the news release.

Tackling the Global Financial and Economic Crisis

East Asian countries need to take a collective approach to the current global economic crisis while developing long-term policies that secure sustainable growth and help cushion them against future financial shocks, says a new report released by ADBI for the Asian Policy Forum. Download the report.

Agricultural Impact of Climate Change

Changes in temperatures and rainfall patterns, as well as their impact on water availability, pests, disease, and extreme weather events will affect the potential of agricultural production. Recent research assesses the economic effects of climate change for Southeast Asian countries up to 2080. Read the paper and post a comment.

How do trade costs affect trade flow?

Transportation costs, different currencies, inadequate logistics of moving goods through ports, inefficient customs documentation, language barriers, and local distribution costs contribute to the flow of trade. A recent paper examines the importance of income and trade costs for the flow of trade between South Asian countries. Read the paper and post a comment.

Global Financial Crisis and Its Impact on Asia

Asian economies are feeling the impacts of the global crisis, and these will worsen over the coming year. Because a crisis can have long-term developmental implications, ADBI is making a contribution to the understanding of the causes of a crisis and formulating measures that developing member countries could adopt to avoid a crisis. Read about ADBI's Global Financial and Economic Crisis project.

Linking Asia's Trade, Logistics, and Infrastructure

Over the next few decades, developing Asia's growth will come through trade expansion, regional integration through the fragmentation of production networks across national borders, and the broadening and deepening of international capital flows to support this trade and production expansion. Read more.

Asia's Infrastructure Challenges: Issues of Institutional Capacity

Asia's rapid growth in the past decade has put tremendous pressure on transport systems; raised the demand for electricity, communication, and travel opportunities; and is putting additional strain on sanitation and water systems. Strong investment in infrastructure is needed to support continuing efforts to achieve overall growth as well as poverty reduction. Read more.

The Unfolding Financial Turmoil

The financial crisis has been extraordinary in its persistence and global reach. An ADBI paper describes events leading to the crisis, the underlying causes, and draws lessons from the events. Policy responses to stabilize markets and strengthen the financial system over the longer term are examined. Read more.

Does Organic Agriculture Lead to Better Health among Poor Farmers?

Among the rural poor, one of the main causes of health problems is exposure to agrochemicals, in particular pesticides. A survey of conventional and organic rice- farming households in Thailand showed that organic farmers had lower medical costs than conventional farming households. Read more.

Regional Cooperation, Infrastructure, and Trade Costs

Developing Asia's remarkable growth owes much to the expansion of international trade. Infrastructure has played a vital part in facilitating that trade, primarily through reducing transaction costs. A new paper explores the links between Asia's trade flows and patterns, trade costs and how they are influenced by infrastructure development. Read the study and post a comment.

Crises, Capital Controls, and Financial Integration

Financial integration encourages better allocation of resources and risks worldwide, and ultimately promotes higher growth. This paper analyzes the effects of capital controls and crises on financial integration, using stocks from emerging economies that trade in both domestic and international markets. Read the paper and post a comment.