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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

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ADBI News 2009 Volume 3 Number 2

ADBI Global Financial Crisis CONFERENCES


Conference Series

Participants at ADBIs 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 Second, because export markets in the US and
related to the impacts of the global financial crisis Europe are unlikely to provide the same growth
on Asian economies aimed at providing potential for Asian economies as they have done
policymakers, academics, and opinion-makers previously, Asian economies need to take steps to
with a comprehensive overview of this topic, encourage a rebalancing of growth toward
including expected economic, financial, social, domestic and regional demand. The potential for
and environmental impacts. The conference series such growth can be realized by: (i) supporting
further provides policy analyses and recom-
mendations, both for short-term stabilization and
for achievement of sustainable and inclusive In this issue
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.

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infrastructure investment; (ii) deepening the Stability Dialogue and the multi-lateralized Chiang
capacity of the regional financial systems to Mai Initiative.
recycle savings within the region to finance In 2009, nine conferences related to the global
investment; (iii) liberalizing trade in goods, financial cricis have been held in Tokyo,
services, and investment; (iv) promoting new including Strengthening Payment Systems in Asia
growth areas such as services and green industries; (10 February); Impacts, Lessons and Growth
(v) encouraging consumption by strengthening Rebalancing (2223 April); Impacts on SMEs
social protection and education; and (vi) promoting and Trade Finance in Asia and Policy Challenges
regional policy coordination. (20 May); Labor Market in the PRC and its
Third, the global financial crisis is likely to lead Adjustment to Global Financial Crisis (1819 June);
to a revamping of the international financial Credit Rating Agencies (12 July); Crisis
architecture, including Bretton Woods institutions developments in Asia and Europe (78 July);
such as the International Monetary Fund, and to Regional Cooperation and Architecture Policy
expanded surveillance of international capital Issues (16 July); Financial Sector Reform and
flows and financial institutions. It is important to Regulation (2123 July); and Macroeconomic
analyze how national and regional institutions in Policy Issues (2829 July).
Asia should respond to such changes. In particular, See more details about this conference series at
there may be expanded roles for an Asian Financial www.adbi.org/research.global.financial.crisis/.

Labor Market in the PRC and CONFERENCE


its Adjustment to the Global Financial Crisis

Fang Cai, a professor and director of the Institute


of Population and Labor Economics at the
Chinese Academy of Social Sciences, presented a
paper on Industrial and Labor Relocations
among Chinese Regions at the conference on
Labor Market in the Peoples Republic of
China (PRC) and its Adjustment to Global
Financial Crisis on 1819 June in Tokyo. Mr. Cai
noted that when the global financial crisis hit the
economy of the PRC, a large number of migrant
workers returned from the coastal regions to their
homes in rural areas, and the engine of economic
growth shifted from the east to the central and
west regions. However, Cai and his colleagues
Current changes in the regional pattern of industrial growth
found that the current changes in the regional are mainly due to the PRCs policy implementations.
pattern of industrial growth are mainly due to the
central governments policy implementations, domestic flying-geese pattern to make industrial
which favored investment in the central and relocation beneficial to all regions.
western regions. Cai suggested that government
Read a more detailed summary of this event at
intervention should be more comparative www.adbi.org/conf-seminar-papers/2009/07/17/3214.
advantage-following, which would facilitate a industrial.labor.relocations.chinese/.

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Finance to the People WORKSHOP

Over eighty policymakers and experts attended the


workshop on Promoting Financial Inclusion
through Innovative Policies on 31 March3 April
in Tokyo. The event was organized by ADBI,
Advisory Group on APEC Financial System
Capacity-Building, APEC Business Advisory
Council, and Alliance for Financial Inclusion.
Participants discussed approaches and exchanged
country experiences in six key areas: (i) agent
banking, where innovative policies and regulations More than 80 policymakers and experts gathered to discuss
can facilitate partnerships with non-bank agents like issues on microfinance, including the fact that 60% of
households in Asia lack access to formal financial services.
post offices so financial services can reach unbanked
customers at lower costs; (ii) mobile banking, where India and Khan Bank of Mongolia; (v) financial
financial transactions, such as deposit-taking, identification, where the lack of financial identity
withdrawal, and payment, can be offered through constraints to the poors access to formal financial
mobile technologies and services; (iii) diversification services; and (vi) consumer protection, focusing on
of providers, where regulatory reform can lower areas such as education, transparency, disclosure,
barriers for start-up institutions developing financial and fair recovery practices.
products for low-income clients; (iv) reform of See more details about the workshop at www.adbi.org/event/
public banks, with case studies on Union Bank of 2878.financial.inclusion.innovative.policies/?sectionID=35.

The Euro After 10 Years LECTURE

building up for some time are now more visible in


light of the global economic crisis.
This has led some to speculate that the
eurozone might break up, with some current
member countries choosing to stop using the
common currency. However, Regling believes that
there will be no breakup. Countries with
adjustment problems would be worse off outside
the euro area than inside. Indeed, more countries
now want to join the euro area.
What are the lessons for Asia from the euro
experience? While there are big differences
The euro is not a magical solution for all problems. between the economic and regional integration
situations in Asia and Europe, their respective
Klaus Regling, the European Union fellow at the objectives for regional integration are the
Lee Kuan Yew School of Public Policy in samenamely, peace, growth, jobs, crisis manage-
Singapore, returned to ADBI on 15 June to speak ment, and shaping globalization. Mr. Regling
on The Euro After 10 Years: Achievements, encouraged Asia to continue with its process of
Challenges, and Implications for Asia. regional integration because the benefits could be
According to Regling, the first decade of the significant. However, as is the case with Europe,
euro was a big success, surprising even skeptics. deeper Asian regional integration requires political
But expectations that the euro would solve all of will and independent institutions.
Europes problems were unrealistic. Problems Read a more detailed summary of this event at
associated with the euro system that have been www.adbi.org/event/2964.euro.after.10.years.adbi.asef/.

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The Current Global Economic and DISTINGUISHED SPEAKER


Financial Crisis

Michael D. Intriligator, professor of economics,


political science, and public policy at the
University of California at Los Angeles and senior
fellow at the Milken Institute, delivered a lecture
on The Current Worldwide Financial and
Economic Crisis at a distinguished speaker
seminar on 25 March in Tokyo. For Mr.
Intriligator, the current crisis was caused by a
convergence of several factors, notably, the 1999
deregulation of the financial markets and the US
Federal Reserve Banks low interest-rate policy
under its former chairman, Alan Greenspan. He
added that unless lending resumes, US President
Barack Obamas economic stimulus plan will be The worlds top experts should together develop approaches
insufficient to stop the downward economic spiral. that would effectively deal with the current crisis.
Mr. Intriligator recommends a host of policies to
hasten economic recovery, two of which were experts and develop approaches that would
inspired by historic American programsnamely, effectively deal with the current world financial
the Marshall Plan, a revamping of which would crisis.
send aid to vulnerable, crisis-hit countries, and the
Read a more detailed summary of this event at
Manhattan Project, whose updated version would www.adbi.org/event/2896.intriligator.distinguished.speaker.
gather the worlds top economics and finance financial.economic.crisis/.

Reforming International DISTINGUISHED SPEAKER


Economic Institutions

Peter A. Petri, Carl J. Shapiro professor of Mr. Petris discussion on reforming international
International Finance at the Brandeis International economic institutions (IEIs) explored the built-in
Business School in Massachusetts and a senior structural limitations of existing IEIs that hinder
fellow of the East-West Center in Hawaii, delivered the institutions effectiveness, helping to shed light
a lecture on International Economic Governance: on the difficulty of reforming them. For Mr. Petri,
Problems and Solutions at a distinguished speaker IEIs face a governance trilemmathat is, the
seminar on 10 April in Tokyo. improbability of achieving universal, democratic,
and decisive institutions simultaneously. One
solution proposed under the club theory framework
is decentralized decision making, which would
allow subgroups within an institution to craft
policies to which not all members may subscribe.
To address the issue of finding a balance between
flexibility of global IEIs and coherence among
sub-global IEIs, international resources should co-
fund regional initiatives so as to align these with
the global objectives of larger IEIs.

Read a more detailed summary of this event at


The challenge in reforming IEIs is to ensure that regional www.adbi.org/event/2933.petri.distinguished.speaker.
initiatives are aligned with global objectives. governing.global.economy/.

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Short-Term Anti-Crisis Policy and DISTINGUISHED SPEAKER


Long-Term Growth of China

Fan Gang, director of the National Economic


Research Institute in Beijing and chair of the
China Reform Foundation, delivered a lecture on
Short-Term Anti-Crisis Policy and Long-Term
Growth of China at a distinguished speaker
seminar on 24 April in Tokyo.
Mr. Fan addressed key questions surrounding
the current recession in the PRC, particularly on
how the country can get through the current
crisis in the short-run as well as longer-term
macroeconomic policy responses. Mr. Fan is
confident of the PRCs long-run sustainable
economic growth owing to improvements in total Structural impediments need to be addressed to facilitate
factor productivity (TFP) and input growth. He the PRCs crisis recovery.
attributed the high TFP contribution to the PRCs
overall growth rate to several factors including as a national high savings rate must be addressed
market-oriented reforms, the spillover effects of in order to hasten the PRCs recovery from the
foreign direct investment, and more research crisis.
and development spending, whose benefits are
Read a more detailed summary of this event at
expected to further spread throughout the economic www.adbi.org/event/2937.gang.bosworth.distinguished.
system. However, structural impediments such speaker.closely.related.topics/.

The Determinants of DISTINGUISHED SPEAKER


US Exports to China

Barry Bosworth, senior fellow in the Economic of US Exports to China (the Peoples Republic of
Studies Program and Robert V. Roosa chair China [PRC]) at a distinguished speaker seminar on
in international economics at The Brookings 24 April in Tokyo.
Institution, delivered a lecture on The Determinants Mr. Bosworth explored three factors(i)
composition of US exports, (ii) the role of
American multinational corporations, and (iii) the
great physical distance between the PRC and the
USbehind the low level of US exports to the
PRC. Results of his analysis showed that only
distance appeared to play a significant role in the
US poor export performance to the PRC. He
argued that this low showing is not particular to the
PRC as the US has had trade deficits with nearly
every country in the world. He added that
uncompetitive real exchange rates may have
something to do with the US-PRC export
imbalance.
Read a more detailed summary of this event at
Analysis results show that physical distance is the main www.adbi.org/event/2937.gang.bosworth.distinguished.
factor in the US poor export performance to the PRC. speaker.closely.related.topics/.

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Era of Electronic Tax Systems SEMINAR

Opened officially on behalf of ADBI by ADBs seminar, participants discussed and explored ways
Viet Nam Resident Mission country director, to establish an effective e-filing and payment
Ayumi Konishi, the three-day Tax Administration system, including financial and human resource
Seminar VI entitled Taxpayer Services Focusing requirements. Such a system is expected to bring
on E-Filing and Payment was held 2325 June in about a set of benefits to both taxpayers and tax
Hanoi. The event was presented in cooperation administrations. These benefits include saving time
with Japans National Tax Agency and the as well as increasing cost effectiveness, accuracy,
Vietnamese General Department of Taxation. convenience, productivity, and safety. This seminar
Twenty four tax policymakers and administrators program, started in 2004, addresses major opera-
as well as thirteen observers, from eight Southeast tional taxation issues and has been hosted in
Asian tax administrations actively participated in rotation among Southeast Asian tax adminis-
the seminar. trations since its inception.
Based on several Asian models on e-filing and Read a more detailed summary of this event at
payment systems that were presented at this www.adbi.org/event/2935.tax.administration.seminar.vi/.

Participants and speakers at the Tax Administration Seminar VI: Taxpayer Services Focusing on E-Filing and Payment.

The PRC-Japan-US: Deeper Integration WORKSHOP

A workshop entitled The PRC, Japan and the


United States: Deeper Integration was
successfully held on 2829 May in Tokyo. The
event was co-organized by ADBI, Hawaiis East-
West Center, Brandeis University, and Nihon
University. The conference addressed the nature of
the existing structural linkages among the three
countries and introduced measures for supporting Cooperation among the PRC, Japan, and the US is important
for deeper regional integration of East Asia as a whole.
deeper integration.
The event was divided into four sessions. related political issues (e.g., between the PRC and
Sessions 1, 2, and 4 discussed key findings of Japan). The discussion concluded that the need for
research papers on trade and foreign direct cooperation among the PRC, Japan, and the US is
investment linkages, East Asian regional important not only for the three countries but for
integration, and policy measures for the current the deeper regional integration of East Asia as a
global financial crisis. Session 3 was a high-level whole. As the PRC and Japan are the two largest
panel that discussed the prospects for cooperation economies in the region, they may be able to take
among the three countries, focusing on the impact the lead in East Asia regional integration.
of the current crisis on Asia, changes in Read a more detailed summary of this event at www.adbi.org/
international architecture such as the IMF, and event/2945.prc.japan.usa.deeper.integration.workshop/.

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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

Knowledge Sharing on CONFERENCE


Infrastructure PPPs in Asia

The Knowledge Sharing on Infrastructure approached PPPs in the transport, urban, and social
Public Private Partnerships (PPPs) in Asia sectors. The comparative country and sector PPP
Conference held 1921 May in Seoul, brought case studies were prepared as part of a global
together more than 80 PPP specialists and comparison of PPP approaches that is being
practitioners from 23 countries across the Asia and undertaken under the Multilateral PPP for Infra-
Pacific region. The three-day conference was structure Capacity Building Initiative (MP3IC) that
hosted by the Korea Development Institute and the ADBI is implementing with WBI and the Inter-
government of Korea, and was organized in American Development Bank-Multilateral
coordination with ADBs Regional and Sustainable Investment Fund (IADB-MIF). The global com-
Development Department with the collaborative parison of PPP approaches generated a great deal
support of the World Bank Institute (WBI). of discussion and interest among the delegates,
The conference profiled an in-depth assessment with appreciation of the variation in approaches
of the Korean PPP experience and contrasted that have evolved to address specific PPP
Koreas PPP policies and sector approaches with challenges faced in each of the diverse countries.
practices from Australia, Chile, India, and the Read a more detailed summary of this event at
UK. It examined how different countries have www.adbi.org/event/2965.korea.ppp/.

This conference examined how different countries have approached PPPs in the transport, urban, and social sectors.

Selected Upcoming Events

Conference on Global Financial Crisis: Social Impacts (Hanoi)


This conference will review evidence and analysis of the crisis social impacts on Asian countries (e.g.,
2829
need for social insurance, effectiveness of existing policies [i.e., conditional cash transfers], and
September education), with the aim of establishing a reference basis for subsequent conferences dealing with
appropriate policy responses in the region.
Conference on Global Financial Crisis: Environmental Impacts (Hanoi)
2930
This conference will review evidence and analysis of the environmental impacts of the crisis and potential
September industrial restructuring on Asian countries by developing appropriate policy responses in the region.

Developing Asia Journalism Training and Awards (Tokyo)


This event includes a four-day training course and an awards ceremony for 20 finalist journalists from
2023
ADBs developing member countries. This events objectives are to: (i) develop journalists skills by
October
equipping them with current knowledge on key economic and development issues; and, (ii) to enable and
encourage them to actively promote public awareness through informative and responsible journalism.
Global Financial Crisis and its Implications for Asia (Washington, DC)
13 This conference will revisit evidence and analysis of the impacts of the global financial and economic
November crisis on Asian countries, with the aim of setting up a reference basis for subsequent conferences dealing
with appropriate policy responses in the region.
View all upcoming events at www.adbi.org/calendarofevents.

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NARBO Training on Integrated WORKSHOP


Water Resources Management

IWRM training participants visit the Cham Island Visitor Center to see the islands conversation project outline.

The Network of Asian River Basin Organizations Forum in Turkey in March of this year. The
(NARBO) secretariat conducted its 5th Integrated guidelines include examples of many successful
Water Resources Management (IWRM) IWRM projects from all over the world and several
Training in Hoi An, Viet Nam, in February with keys for success were identified. The program also
support of the host organization, the Vu Gia-Thu included case studies of the Vu Gia-Thu Bon River
Bon River Basin Organization. Twenty four Basin itself.
participants from six countries participated in this ADBI is leading NARBOs IWRM training and
training which focused on the concept and planning program for the next IWRM Training
implementation of IWRM. event, which will be held in Naovember in Hoi An,
Based on the recommendations from experts of Viet Nam.
NARBO member organizations, the training
program discussed the IWRM Guidelines, which Read a more detailed summary of this event at
were officially launched at the 5th World Water www.adbi.org/event/2822.narbo.5th.workshop/.

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Publisher: Takashi Kihara
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