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Asia and Policymaking for the Global Economy

Asia and Policymaking for the Global Economy

Kemal Derviş
Masahiro Kawai
Domenico Lombardi
Copyright Date: 2011
Pages: 200
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  • Book Info
    Asia and Policymaking for the Global Economy
    Book Description:

    In this collaboration between the Brookings Institution and the Asian Development Bank Institute, eminent international economists examine the increased influence of Asian nations in the governance of global economic affairs, from the changing role of the G-20 to the reform of multilateral organizations such as the International Monetary Fund.

    Established in the aftermath of the Asian financial crisis at the ministerial level, the G-20 has served as a high-level platform for discussing economic analyses and policy responses since 1999. During the current global financial crisis, however, the G-20's role moved toward that of a global crisis management committee at the leadership level. The challenge now for the G-20 is to succeed in fostering ongoing and increasing cooperation among its members while being supportive of, rather than trying to replace, more universal institutions.

    After analyzing the dynamics of growth in Asia comparatively and historically, the volume appraises the scope for policy coordination among key economies. The contributors analyze financial stability in emerging Asia and then assess the implications of Asia's increasing role within the newly emerging system of global economic governance, focusing especially on reform of the international monetary structure.

    Contributors: Dony Alex (ICRIER, New Delhi), Kemal Dervis¸ (Brookings), Hasan Ersel (Sabanci University), Karim Foda (Brookings), Yiping Huang (Peking University), Masahiro Kawai (ADBI), Rajiv Kumar (FICCI, New Delhi), Domenico Lombardi (Oxford University and Brookings), José Antonio Ocampo (Columbia University), Jim O'Neill (Goldman Sachs)

    eISBN: 978-0-8157-0438-6
    Subjects: Economics, Business, Political Science

Table of Contents

  1. Front Matter
    (pp. i-iv)
  2. Table of Contents
    (pp. v-vi)
  3. Foreword
    (pp. vii-x)
    Haruhiko Kuroda

    The sustained development in large parts of Asia has been one of the most significant signs of economic and social progress in the past half-century. Japan made the leap to industrialization first, followed soon after by the newly industrialized economies of Hong Kong, China; the Republic of Korea; Singapore; and Taipei, China. Then came the rapid development of countries now joined together in the Association of Southeast Asian Nations (ASEAN). More recently, we have seen the economic rise of the People’s Republic of China and India, whose economies have exhibited extraordinary vitality throughout the past decade. Today, with a financial...

  4. ONE Introduction and Overview
    (pp. 1-18)

    Less than a decade ago, most economists and economic historians, looking at the nineteenth and twentieth centuries as a whole, or looking at the last decades of the twentieth century, still remarked that the process of global economic growth had been accompanied by a process of “divergence” of per capita incomes between a small group of rich countries and a large number of lower-income economies. The words of renowned growth theorist Elhanan Helpman are representative of most thought on the subject until quite recently: “Although the differences in income per capita among rich countries have declined in the post–World...

  5. TWO Emerging Asia and Rebalancing the World Economy
    (pp. 19-68)

    The thirty years from 1990 to 2020 will constitute the period of greatest structural shift that the world economy has ever experienced over a period as short as three decades. Broadly speaking, the ongoing shift is due to very rapid economic growth in Asia. The People’s Republic of China (henceforth, PRC) dominates the figures and is the clear leader in terms of the speed of growth, but after decades of slow growth, India, with a population almost as large as the PRC’s, has also gradually become a rapidly growing economy. Other smaller and medium-sized countries are contributing to the remarkable...

  6. THREE Large Asian Economies and the United States: Is Rebalancing Feasible?
    (pp. 69-104)

    Factors such as lax financial sector regulation, regulatory capture by major financial players, and an intellectual climate that saw markets as fully self-correcting and market agents as perfectly rational on the basis of complete information, as well as global macroeconomic imbalances have been identified as the major drivers of the financial crisis and the subsequent global economic slowdown. These factors characterized the “great recession” of 2007–09. Some analysts, however, have cited global macroeconomic imbalances as the root cause of the financial crisis and the subsequent global recession.¹ The debate on the nature and role of global imbalances has focused...

  7. FOUR G-20 Financial Reforms and Emerging Asia’s Challenges
    (pp. 105-150)

    One important lesson of the global financial crisis that began in 2007 is that a systemic crisis that affects a country’s overall financial system is very costly, not only in terms of fiscal resources—mobilized to counteract the economic downturn and support the financial system—but also in terms of output and employment lost. Policymakers should therefore make every effort to avoid a systemic financial crisis and maintain financial stability by pursuing sound macroeconomic and regulatory policies, identifying systemic risks when they emerge, and acting on them to reduce the likelihood of a crisis.

    The crisis devastated the economies of...

  8. FIVE The International Monetary System through the Lens of Emerging Asia
    (pp. 151-190)

    As the world economy tries to leave behind the worst recession in almost a century, in 2010 emerging Asia has led the global recovery with stronger than anticipated growth, projected at 10.5 percent for the People’s Republic of China (hereafter PRC) and 9.7 percent for India.¹ Building on the resilience of their aggregate demand, the soundness of their policy fundamentals, and their swift response to the crisis, emerging Asian nations have been able to weather the global crisis that sent other countries to the brink of economic depression.

    This is in stark contrast to the financial crisis that affected the...

  9. Contributors
    (pp. 191-192)
  10. Index
    (pp. 193-200)
  11. Back Matter
    (pp. 201-202)