Conclusion

East Asia can contribute to the stability of global finance by achieving sustainable economic growth and financial stability (and by not repeating financial crises) through (i) establishment of resilient national financial systems; (ii) mobilization of regional savings for regional investment; (iii) strengthening of regional liquidity (CMI) and surveillance (ERPD) arrangements; and (iv) adoption of formal or informal exchange rate policy coordination.

What is the most appropriate regional grouping that can deliver these results? ASEAN has the longest history of regional economic and financial cooperation in East Asia and is now on its way toward building an ASEAN Economic Community (AEC) by 2015. ASEAN+3, created in the aftermath of the Asian financial crisis, has been focusing on regional surveillance and liquidity arrangements. EAS is the most recent grouping; its role in regional financial cooperation has yet to be identified. Among the leaders of these groupings, there is an emerging consensus that ASEAN is the "driving force" for the full realization of an East Asian economic community (EAEC), ASEAN+3 is the "vehicle" for this purpose, and EAS is an "integral part" of the overall evolving regional architecture. Though it is difficult to predict the future shape of the regional financial architecture, ASEAN and ASEAN+3 will focus on all issues (i)–(iv) above while EAS as a supporting group can focus on (i) and (ii).

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