Conclusion

Over the past decade Asia has experienced market-driven economic integration through infrastructure development. Given the region's great diversity, cooperation between different groups of countries (or subregions) has been progressing at varying speeds using numerous institutions, frameworks, and forums to address a wide range of policy interests. A number of subregional infrastructure cooperation initiatives have been undertaken for formulating and implementing cross-border or regional infrastructure projects to enhance economic integration through physical connectivity. Overall, the progress of these projects has been slow with the exception of the Greater Mekong Subregion (GMS) program. It is time to take an Asian approach to regional integration and support subregional programs to move towards realizing the vision of a seamless and integrated Asia as set out by the recent ADB/ADBI Flagship Study, “Infrastructure for a Seamless Asia” (ADB/ADBI 2009).

In view of Asia's enormous untapped economic potential and the ongoing global financial crisis and economic recession, this is the time to build efficient and seamless regional infrastructure in transport, energy, and telecommunications for a more competitive, prosperous, and integrated region. This would be the foundation for Asian common markets, and a step toward realizing the vision of an EU-style Asian community. Asia has many existing infrastructure cooperation institutions, most of which are informal, weak, and have limited effectiveness. What Asia needs now to support and complement these institutions is an effective institutional framework for Asian connectivity by strengthening exiting institutions and creating a mechanism for ensuring effective coordination and cooperation among them toward achieving Asian connectivity.

In order to build seamless Asian connectivity, Asia needs an effective, formal, and rule-based institutional framework. This could be achieved through the creation of two new institutional mechanisms, PAIF and AIF, which would cooperate with existing national, bilateral, subregional, and regional institutions. ADB and UNESCAP, as well as the variety of national, regional, and subregional institutions currently dealing with infrastructure development, can play an important role in managing this new framework. Strengthened and improved national and subregional institutions can work together towards a common goal of seamless connectivity within such a framework. The creation and effective operation of this proposed framework—which would require political leadership, vision, capacity, commitment, and partnership of Asian countries at the highest level—could help unleash the region's economic potential.

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Comment(s)

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1. Sritanu Chatterjee
   (posted 29 June 2010 / 12:13:47 PM)
   
   Dear Sir,
   
   I much appreciate the effort to write this well thought-out paper. It is true that most of the Asian integration has been market driven with a bottom up approach unlike that of NAFTA or EU. But it would have been better as to think about how market driven approach can transform the thinking of national governments to implement the soft infrastructure. Some of the top-down projects that have faced eternal delays are mostly due to changes in market condition. One of the examples is the India-Pakistan-Iran gas pipe line project. The project seemed very attractive and feasible till crude was trading 140 USD and projected to reach 200 USD. But now the whole project is lying in shambles. So I think it is very important to have the soft infrastructure in place and that will expedite the process of regional integration.
   
   The institutional framework presented in the paper is quite elaborate. Some timelines or for the formation of each the teams could have been provided.
   
   Is there any forum still now where the premiers of Asian countries can meet? What I think missing in the papers is the process of initiation of talks for the formation of PAIF Summit Steering Committee.
   
   As crisis helps in creating successful institutions that can change the destiny of nations, I hope that the Asian Connectivity program of ADBI would help in changing the future of 60% of the world population.
   
   Thanks & Regards,
   Sritanu