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A s i a n D e v e l o p m e n t B a n k I n s t i t u t e

www.a dbi .o rg
ADBI News 2009 Volume 3 Number 4

Does Social Policy Have a Role in ANNUAL CONFERENCE

Global Growth Rebalancing?

ADBI Dean Kawai and other panelists discuss social protection spending at ADBIs 12 Annual Conference in Tokyo.

How does social policy impact domestic Other speakers highlighted other coping
demand? This was the focus of the discussions mechanisms, besides savings and social protection,
during the ADBIs 12thAnnual Conference held 4 such as households ability to borrow. Charles
December in Tokyo. The paper presentations Horioka of Osaka University suggested in his
generally showed a positive effect of improved
social protection programs in boosting domestic
demand through a reduction in households In this issue
precautionary savings as well as increases in Does Social Policy Have a Role in
income. Particularly when targeted to low-income Global Growth Rebalancing? 12
households that have high spending propensities,
Internationalizing the Euro 2
the impact of social protection spending on
consumption is higher. Conferences Give Comprehensive
View of Implications of
However, several speakers cautioned against
Global Financial Crisis for Asia 3
depending heavily on social protection spending to
boost domestic demand. Certainly, particularly in Advisory Council Approves
countries that have a high budgetary surplus, social ADBIs 2010 Work Plan 4
protection spending is one policy solution that can Challenges in the Implementation of
be used but it is not the only instrument for global Competition Law 5
growth rebalancing. Nor is social protection policy Eco-Industrial Clusters 5
primarily for increasing demand or reduction of 2009 Research Policy Briefs 6
precautionary savings; rather it is for poverty relief
Selected Upcoming Events 7
and risk protection. Social protection policys
impact on consumption is only a favorable side Recent Working Papers 7
effect in the context of the general need to Development Journalists Tackle
rebalance growth in the region. Financial Crisis and Climate Change 8

A s i a n D e v e l o p m e n t B a n k I n s t i t u t e

presentation that looser borrowing constraints may posited to be stronger in countries with weaker
be an important factor in lowering saving ratios social protection programs. Several presentations
with the implication that the development of also centered on the Peoples Republic of Chinas
capital markets alleviates the need for high social expenditure reforms role in beefing up
precautionary saving. The conference also consumption as well as the potential importance of
discussed the impact of demographic trends in state-owned enterprises corporate surpluses in
savings and how a rise in old-age dependency funding government social spending.
ratios tends to reduce savings rates. Interestingly, Find more details about this event at
the sensitivity of savings to old-age dependency is

ADB President Kuroda and ADBI Dean Kawai with the speakers and discussants at ADBIs 2009 Annual Conference.

Internationalizing the Euro DISTINGUISHED SPEAKER

Jean Pisani-Ferry, director of Bruegel, a a lecture on Why the Euro is NOT the Next
Brussels-based think tank, and professor of Global Currency on 10 December in Tokyo.
economics at the Universit Paris-Dauphine, gave For Mr. Pisani-Ferry, although the euro is a
successful regional currency, it is not en route to
rival the US dollar as a global currency. His
finding is based on a recently published book that
revealed the dominance of the US dollar over the
euro in foreign exchange transactions, international
debt security markets, cross-border loans, foreign
exchange reserves, trade invoicing, and bond
issuances. To internationalize the euro, Mr. Pisani-
Ferry proposed the following to European Union
member countries: adopt pro-growth policies to
expand the economic base, issue joint euro bonds
and joint financial supervision to completely
integrate financial markets, improve surveillance
capacities to strengthen governance, and adopt a
proactive stance towards euroization.
Strengthening the international role of the euro largely Read a more detailed summary of this event at
coincides with the internal agenda of the region.

A s i a n D e v e l o p m e n t B a n k I n s t i t u t e

Conferences Give Comprehensive View of CONFERENCE

Implications of Global Financial Crisis for Asia

ADBI has organized a series of conferences related and major development partners (i.e., Germanys
to the impacts of the global financial crisis on BMZ, GTZ, and KfW; the UKs Department for
Asian economies aimed at providing policymakers, International Development; International Labour
academics, and opinion-makers with Organisation; International Poverty Reduction
comprehensive assessments of economic, financial, Center in China; Japan International Cooperation
social, and environmental impacts, together with Agency; United Nations Development Programme;
policy analyses and recommendations, both for World Health Organization; and World Bank).
short-term stabilization and for achievement of Nearly 300 representatives from governments, civil
sustainable and inclusive long-term growth. society, academia, and multilateral and bilateral
The most recent conferences included Social development agencies discussed and shared
and Environmental Impacts (2829 September) country experiences, strategies, and responses. It
and Financial Sector Regulation and Reform in included over 100 papers and presentations related
Emerging Markets (2223 October), the latter of to the impacts of the crisis, including topics
which was co-organized with the Brookings covering employment, poverty, gender, mother and
Institution in Washington, DC. An inception child health, migration, remittances, industry-
meeting was held at ADBI on 18 November for a specific impacts, environment, green growth, and
book summarizing overall policy recommendations fiscal policy implications.
for achieving sustainable growth in Asia by The October conference on financial sector
encouraging domestic and regional demand in an regulation and reform in emerging markets was co-
environment where export growth to developed sponsored with the Brookings Institution and
economies cannot be relied upon as an engine of brought together scholars and officials from around
growth. the world to discuss issues including
The September conference on social and macroprudential regulation, monetary policy
environmental impacts, held in Hanoi, was a large- frameworks, capital flows, capital adequacy rules,
scale undertaking organized jointly with ADB, the and micro-finance.
Government of the Peoples Republic of China, the Read a more detailed summary about this conference series at
Government of Viet Nam, the ASEAN Secretariat,

ADB/ADBIs flagship book, Infrastructure for

a Seamless Asia, addresses major challenges in
developing regional infrastructureboth hard
and softin Asia, specifically exploring the
costs and benefits, financing requirements, and
infrastructure priorities in the region. The study
analyzes the European and Latin American
experiences in assessing institutions, policies,
and frameworks necessary to foster regional
cooperation. In addition, this study evaluates
existing regional infrastructure programs,
policies, and institutions, and makes
recommendations to meet these challenges,
providing a framework for pan-Asian
infrastructure cooperation. The key message of
the book is that now is the time to forge ahead To purchase this book (US$45, soft cover),
with the goal of integrating this vast and diverse visit:
regionto foster lasting prosperity for all its
citizensthrough the building of pan-Asian Infrastructure-Seamless-Asia/
infrastructure connectivity. default.asp.

A s i a n D e v e l o p m e n t B a n k I n s t i t u t e

Advisory Council Approves ADVISORY COUNCIL

ADBIs 2010 Work Plan

Standing (left to right): Andrew MacIntyre, Eric Girardin, ADBI Dean Masahiro Kawai, Jong-Wha Lee.
Sitting (left to right): Masahiro Aoki, ADB President Haruhiko Kuroda, Victor H. Frank, Jr. Members not pictured are
K. M. Chandrasekhar and Gang Fan.

A meeting of the Advisory Council occurred in In his welcome remarks, ADB President
ADB headquarters at the end of October, where Kuroda said that ADBI has evolved into a
Advisory Council members discussed ADBIs powerful and useful research institute within Asia,
Three-Year Rolling Work Program. which is greatly appreciated by the ADB board.
The Advisory Council is an important group of The Advisory Council members in attendance
senior scholars and practitioners selected from the endorsed ADBIs Research and Capacity Building
member countries of ADB on a broad geographic and Training departments proposed work
basis. Their advice and recommendations are programs. The main points of discussion centered
critical to ensuring that ADBIs work products and around ideas for online dissemination of research
chosen projects are of the highest standards and work and enhancement of the ADBI brand.
relevance. Twice a year, ADBIs strategic The members also supported ADBI Dean
directions and work programs are reviewed and Kawais strategic directions for the coming period,
commented upon by the council members. and broadly agreed with the outcomes of the
The term of office for the members is two years research flagship study on infrastructure and
and they may be reappointed at the end of their regional cooperation as well as the thrust of the
terms. By statute, meetings alternate between global financial crisis project.
ADBIs premises in Tokyo and ADBs Manila ADBI was commended for the consistent
headquarters. Chairpersons for the councils are quality of its work output, a close alignment with
selected by the members from among themselves ADBs strategic framework, and an internally high
at each of their meetings. Octobers meeting was level of program coherence.
chaired by Andrew MacIntyre, dean of the
Read a more detailed summary of this event at
Australian National Universitys College of Asia
and the Pacific. advisory.council.meeting/.

A s i a n D e v e l o p m e n t B a n k I n s t i t u t e

Challenges in the Implementation of WORKSHOP

Competition Law

The Regional Workshop on the Challenges in Mongolia, India, Pakistan, and Sri Lanka
the Implementation of Competition Law was exchanged their views and experiences on
jointly organized by ADBI, the ASEAN advocacy, enforcement, drafting of competition
Secretariat, and the Department of Internal Trade law, and institutional capacity building with
of Thailand on 1112 November in Bangkok. More experts from US Federal Trade Commission, Japan
than 50 middle-senior officials from competition or Fair Trade Commission, Australian Competition
related agencies in ASEAN countries, PRC, and Consumer Commission, Office of Fair Trading
(UK), and Bundeskartellamt (also known as the
German Federal Cartel Office). The workshop
found, among others things, that: (i) raising public
awareness facilitates information gathering; (ii)
combined financial and individual sanctions,
backed by strong leniency policy, are effective in
deterring future violation of competition law; and
(iii) engaging and retaining the right talent,
leveraging on technology, streamlining the
process, and regular trainings are institutional
requirements for effective competition
ADBIs director of Capacity Building and Training
department, Worapot Manupipatpong, speaking about See more details about this workshop at
competition law at the Bangkok workshop.

Eco-Industrial Clusters WORKSHOP

Eco-industrial clusters are defined as geographic

concentrations of interconnected companies in a
specialized field that cooperate with each other and
with the local community to efficiently share
resources. This cooperation leads to improved
environmental quality, economic gains, and
equitable enhancement of human resources.
The workshop on Eco-industrial Clusters
(EIC): Policies and Challenges was held 811
December in Tokyo. More than 30 senior officials
from 13 regional economies exchanged views The green value chains of EICs offer great opportunity for
and experiences on policy constraints and disinvested isolated communities to be connected to more
vital national economy.
strategies to transform industrial clusters into
eco-friendly economic zones. The workshop appropriate social, technological, and financial
concluded that EICs offer significant opportunity support, EICs can promote synergies among
for small- and medium-sized enterprises to downstream and upstream businesses and foster
achieve both environmental and economic sustainable development in the urban fringe
competitiveness. EICs are creating greater value areas.
for industrial clusters by maximizing the use of
See more details about this workshop at
resources through eco-efficiency approaches and
the 3R policyreduce, recycle, and reuse. With clusters/.

A s i a n D e v e l o p m e n t B a n k I n s t i t u t e

2009 Research Policy Briefs

Unregulated Entities, Products, and Markets: The Global Economic Crisis and Rebalancing
Challenges for Monitoring and Regulation Growth in East Asia
Author: Peter Morgan Author: Yung Chul Park

This policy brief examines hedge funds, private Asia has staged an impressive turnaround in 2009,
equity funds, and innovative financial products, but it is unclear whether the recovery can be self
particularly collateralized debt obligations and sustaining even if the US and Europe fail to pull
asset-backed securities, including their overall themselves out of the current recession. This
structure, their role in the development of the policy brief discusses the impact of the global
current global financial crisis, and what changes financial crisis on emerging Asia and seeks to
are needed in the global financial architecture articulate the rationale behind the policy changes
related to these institutions and products to and reform necessary to return East Asia to the
strengthen financial stability going forward. path of pre-crisis growth.

Read Research Policy Brief 30 at Read Research Policy Brief 31 at

The Global Financial Crisis and Macroeconomic

Policy Issues in Asia
Author: Shinji Takagi
Responding to the severe negative impact of the
recent global financial crisis, many Asian
economies resorted to substantial easing of
macroeconomic policies. This policy brief reviews
the principal policy measures implemented,
examines the issues that have emerged from this
extraordinary experience, and concludes with a
forward-looking discussion of medium- to longer-
term measures to improve the effectiveness of
macroeconomic policies and to make the world
and the region a safer place.
Read Research Policy Brief 32 at

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A s i a n D e v e l o p m e n t B a n k I n s t i t u t e

Selected Upcoming Events

Global Financial and Economic Crisis: Fiscal Policy Issues after the Crisis (Tokyo)
The purpose of this conference is to present drafts on the implications of the post-crisis environment for
19 January fiscal policy issues in Asia. Participants will be members of the core study group, other resource persons to
comment on the reports, and high-level officials of ASEAN+3s finance ministries and central banks,
multilateral agencies, and academics.
A Perspective of the Asian Financial Sector under the Global Financial Crisis (Tokyo)
21 January The purpose of this conference is to present the final drafts of the papers on the implications of the global
financial crisis for financial institutions in Asia.
Regionalism and Reform of the Global Monetary and Financial System: What Role for the European
Union and East Asia? (Brussels)
The conference will analyze the future of global and regional monetary arrangements, consider global and
4 February regional financial frameworks for balance of payments adjustments, and discuss some specific proposals for
reforming regional financial regulation and supervision. The participants of this conference will consist of
internationally known academics, senior policymakers from European and Asian countries, and
representatives from international private financial institutions and non-government organizations.
View all upcoming events at

*The ADBI Working Paper series is a continuation of the formerly

Recent Working Papers* named Discussion Paper series; the numbering of the papers has
continued without interruption or change.

An Empirical Analysis of East Asian Computer The Role and Effectiveness of Unconventional
Exports Monetary Policy
Author: Willem Thorbecke Author: Peter Morgan
For the last 15 years, computers have been the leading export This paper reviews the effectiveness of unconventional
category from East Asia to the rest of the world. A new study monetary policies and their relevance for emerging markets.
reveals that if global growth remains slow, computer exports Such policies may be useful either when interbank rates fall to
may no longer remain an engine of growth unless demand for zero, or when a credit crunch or rise in risk premium impairs
final goods in the region increases. the normal transmission mechanism of monetary policy.
Read Working Paper 160 at Read Working Paper 163 at
2009/11/06/ 2009/11/11/3366.role.unconventional.monetary.policy/.

An Empirical Analysis of ASEANs Labor-Intensive Reform of the International Financial Architecture:

Exports An Asian Perspective
Author: Willem Thorbecke Author: Masahiro Kawai
Results of this study indicate that profit margins for labor- It has taken two crisesthe Asian financial crisis of
intensive manufactures are thin and that slow growth abroad 19971998 and the global financial crisis of 20072009for
will curtail ASEANs exports. These findings imply that the international community to focus on international financial
policymakers should seek to promote domestic demand, architecture reform for crisis prevention, management, and
expand the technological base, and consider exchange rate resolution. This paper argues that the current architecture is not
coordination to mitigate beggar-thy-neighbor policies. adequate for the needs of many emerging market economies.
Read Working Paper 166 at Read Working Paper 167 at
2009/11/20/3369.empirical.analysis.asean.labor.export/. 2009/11/24/

Political Economy of East Asian Regional Origin and Beyond: Trade Facilitation Disaster or
Integration and Cooperation Trade Facilitation Opportunity?
Author: Saori N. Katada Authors: Brian Rankin Staples and Jeremy Harris
This paper focuses on the political factors that have thus far The information required for the international sale and
shaped the institutional form of East Asian regional trade and movement of goods, taking advantage of preferential tariffs,
financial cooperation and argues that economic institutions and complying with the vast array of environmental, security,
established through the cooperation efforts of the last ten years and consumer safety requirements is significant. The authors
fall far short of overcoming unexpected political tensions in explore mechanisms for reducing barriers imposed by rules of
the region. origin through effective trade facilitation efforts, and argue
Read Working Paper 170 at that that the key is information management.
2009/12/01/ Read Working Paper 171 at

A s i a n D e v e l o p m e n t B a n k I n s t i t u t e

Development Journalists Tackle

Financial Crisis and Climate Change

Imelda Abano from the Philippines won ADBIs of the global financial crisis, (ii) government
2009 Development Journalist of the Year Award, responses to the global financial crisis, (iii)
while Supriya Khandekar from India was awarded infrastructure development, and (iv) climate
Young Development Journalist of the Year at change adaptation.
ADBIs Developing Asia Journalism Awards A distinguished panel of four independent
and Training event, 2023 October in Tokyo. judges chose 22 finalists from over 200 entries
In addition, there were twelve prizes for the submitted for consideration. The finalists
following thematic categories: (i) poverty impact attended a four-day training workshop program in
Tokyo that was organized
by ADBI in cooperation
with the International
Institute for Journalism of
InWEnt-Capacity Building
International, Germany.
The workshop provided the
finalists the opportunity to
discuss and debate the
above four issues and their
latest development with
leading experts.
The growing interest
in the DAJA program
demonstrates the importance
of promoting excellence in
journalistic reporting as a
key factor for inclusive and
sustainable growth, as well
as good governance.

Find more details about the

awards and training at
The Developing Asia Journalism Awards gave participants and attendees something to write
home about.

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