Endnotes

¹Except ASEAN+3 does not contain Hong Kong, China and Taipei,China and includes all the newer ASEAN member countries.

²Most of the loans to developing countries were short-term because under the provisioning requirements of the Basle Capital Accord, a 20% risk weighting is applied to short-term loans to non-OECD banks, while a 100% risk weighting has to be applied to long-term loans (with a maturity of one year or more).

³For detailed discussions of the IMF program for Thailand, see Sussangkarn (2002).

⁴For various discussions, see for example, Sachs (1997), Stiglitz (1998), Feldstein (1998), Krugman (1998), UNCTAD (1998), Chapter 4, and Stiglitz (2002).

⁵Malaysia successfully used capital controls to ward off a more severe crisis. It should be noted, however, that Malaysia did not have as much short-term foreign debt (in relation to reserves) as Thailand.

⁶For details on Japan's proposal for the AMF, see Lipscy (2003).

⁷In the form of the Latin American Reserve Fund and the Arab Monetary Fund, see, e.g., Sussangkarn (2000).

⁸The countries represented were Australia; Brunei; Darussalam; Canada; PRC; Hong Kong, China; Indonesia; Japan; Korea; Malaysia; New Zealand; Philippines; Singapore; Thailand and the United States. High-level representatives from the IMF, the World Bank and the ADB also attended the meeting.

⁹See The Joint Ministerial Statement of the ASEAN+3 Finance Ministers Meeting, 6 May 2000, Chiang Mai, Thailand, available on the web site of the ASEAN Secretariat at http://www.aseansec.org/.

¹⁰Under the swap facilities, a participating member country with temporary international liquidity problems can swap domestic currency for US$ with an agreement to buy back the domestic currency at an agreed future date.

¹¹See reviews and discussions of arrangements under the Chiang Mai Initiative in Manupipatpong (2002) and Rana (2002).

¹²The ASA actually started in 1977 with a total amount of US$100 million. The total was increased to US$200 million in 1978.

¹³Contributions to the ASA by the six older members of ASEAN (Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand) were US$150 million each, while Viet Nam, Myanmar, Cambodia and Laos contribute US$60 million, US$20 million, US$15 million and US$5 million, respectively.

¹⁴From the Joint Ministerial Statement of the 10th ASEAN+3 Finance Ministers' Meeting, 5 May 2007, Kyoto, Japan. The author was co-chair of this meeting in his capacity as Thailand's minister of finance at that time.

¹⁵From the Joint Media Statement of the 12th ASEAN+3 finance ministers' meeting, 3 May 2009, Bali, Indonesia.

¹⁶There are also various other central bank swap agreements (not associated with the CMI) in the region, such as Korea's swaps with Japan and PRC .

¹⁷De-linking should be agreed at the policy level, but with appropriate sequencing. The IMF can still play an important role for the CMIM through its relationship with the ISU (see below).

¹⁸At the sideline of the annual ASEAN summits, there is now the ASEAN+3 summit, as well as the East Asian summit (ASEAN+3+Australia, India and New Zealand).

¹⁹At present, ASEAN+6 only holds an annual Summit, with no substantive activities below the Summit level, while there are numerous meetings at Ministers and officials levels under the ASEAN+3 mechanism.

²⁰The new organization will still be referred to as the ISU in the rest of the paper.

²¹It is likely be more similar to the Arab Monetary Fund, which has 22 member countries, than the Latin American Reserve Fund which groups together only seven relatively small countries.

²²See http://www.amf.org.ae/content/objectives-and-means

²³Manupipatpong (2002) gives details on the development and process of the ASP as well as an evaluation of its potential contributions and limitations.

²⁴EMEAP stands for Executives' Meeting of East Asia-Pacific Central Banks. The economies involved are the five old members of ASEAN; the “plus three” countries; Hong Kong, China; Australia; and New Zealand.

²⁵Heads of other financial supervisory bodies, if any, can also participate in the annual meeting, which might be called the Asian Financial Stability Dialogue (AFSD). See discussions in Setboonsarng (2009).

²⁶For a detailed discussion of reforms of the global financial architecture and contributions from evolving East Asian regional financial architecture, see Kawai (2009).

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