Global Financial Crisis Project

ADBI's Masahiro Kawai, Thailand's Chalangphob Sussangkarn, and PRC's Zhang Yunling address the press at the Foreign Correspondents' Club of Japan.

The current financial crisis and global economic downturn did not originate in Asia, and, indeed, Asian countries in structural terms are generally in good shape. Compared to other parts of the world, however, most Asian countries are better prepared in managing the fallout from the current crisis, which has become highly contagious. Exports and industrial production have already fallen sharply across the region, domestic demand is likely to weaken, and stresses have emerged in a number of financial and currency markets.

The Asian Development Bank Institute (ADBI) has responded to the current global financial crisis by initiating a study of the implications of the crisis for Asia, with conferences on The Global Financial Turmoil and its Impact on Asia and Asia's Response to the Global Financial Crisis.

Under the global financial crisis program, on 19 March, ADBI released two reports on behalf of the Asian Policy forum: “Recommendations of Policy Responses to the Global Financial and Economic Crisis for East Asian Leaders” and “Recommendations to East Asian Leaders for G20 Meeting.” The first report sets out suggested short-term stabilization actions to help countries counter the crisis, while putting forward ideas for longer term structural change. The second report calls on East Asian leaders to adopt a strong coordinated approach at April's G20 summit. At a press conference at the Foreign Correspondents' Club of Japan to launch the reports, Masahiro Kawai, ADBI Dean, said, “It is important for East Asian economies to implement measures that will help reduce their vulnerability to future shocks. In the medium-term, exports to developed economies will be less of an engine of growth for the region than in the past and therefore East Asia will need policies to facilitate a shift toward inclusive, sustainable growth driven by regional demand.”

ADBI is looking into the causes of the crisis and formulating measures that ADB's developing member countries could adopt to manage the fallout from the crisis. ADBI is holding a series of conferences related to major aspects of the impacts of the crisis on Asia and policy recommendations. The conferences are organized into five themes: (i) macroeconomic impacts and policy, (ii) real economy impacts, (iii) social and environmental impacts, (iv) financial regulation and reform and regulation, and (v) regional cooperation and regional/global architecture.

See the schedule of conferences.