Global Financial Crisis project

Participants at ADBI’s Global Financial Crisis: Macroeconomic Policy Issues conference in July. The global financial crisis conference series seeks to provide policymakers, academics, and others with an overview of the ongoing impacts of the crisis..

ADBI has organized a series of conferences related to the impacts of the global financial crisis on Asian economies aimed at providing policymakers, academics, and opinion-makers with a comprehensive overview of this topic, including expected economic, financial, social, and environmental impacts. The conference series further provides policy analyses and recommendations, both for short-term stabilization and for achievement of sustainable and inclusive longer-term growth.

The global financial crisis has three broad areas of implications for Asian economies and markets that have been analyzed extensively in these conferences. First, financial system regulation and surveillance must be strengthened to minimize the impacts of the current crisis and to insulate Asian economies from future shocks, both internal or external. This includes implementation of regional surveillance and development of macro-prudential frameworks for financial supervision and regulation. Along with this, macroeconomic policy frameworks need to be strengthened.

Second, because export markets in the US and Europe are unlikely to provide the same growth potential for Asian economies as they have done previously, Asian economies need to take steps to encourage a rebalancing of growth toward domestic and regional demand. The potential for such growth can be realized by: (i) supporting infrastructure investment; (ii) deepening the capacity of the regional financial systems to recycle savings within the region to finance investment; (iii) liberalizing trade in goods, services, and investment; (iv) promoting new growth areas such as services and green industries; (v) encouraging consumption by strengthening social protection and education; and (vi) promoting regional policy coordination.

Third, the global financial crisis is likely to lead to a revamping of the international financial architecture, including Bretton Woods institutions such as the International Monetary Fund, and to expanded surveillance of international capital flows and financial institutions. It is important to analyze how national and regional institutions in Asia should respond to such changes. In particular, there may be expanded roles for an Asian Financial Stability Dialogue and the multi-lateralized Chiang Mai Initiative.

In 2009, nine conferences related to the global financial cricis have been held in Tokyo, including Strengthening Payment Systems in Asia (10 February); Impacts, Lessons and Growth Rebalancing (22–23 April); Impacts on SMEs and Trade Finance in Asia and Policy Challenges (20 May); Labor Market in the PRC and its Adjustment to Global Financial Crisis (18–19 June); Credit Rating Agencies (1–2 July); Crisis developments in Asia and Europe (7–8 July); Regional Cooperation and Architecture Policy Issues (16 July); Financial Sector Reform and Regulation (21–23 July); and Macroeconomic Policy Issues (28–29 July).

See more details about this conference series.