Asian policymakers must take collective approach to secure growth, says report
A new policy recommendation report released by the Asian Development Bank Institute (ADBI) for the Asian Policy Forum urges Asian policymakers to take a collective approach to secure balanced and sustainable growth.
According to ADBI, Asian economies have begun to recover from the global financial crisis of 2007-2009, but many risks remain, including the possibility of a double-dip recession in the advanced economies, the inappropriate timing and pace of withdrawals of macroeconomic stimulus programs around the world, surges in short-term capital inflows to emerging economies, and "currency wars."
"Asian leaders need to meet and enunciate an Asian program to achieve balanced and sustainable growth. The articulation of such a program will boost confidence and position the region as a leading center of the global recovery," said Masahiro Kawai, Dean of ADBI.
The report recommends that Asian leaders attending regional and global summit meetings over the next several weeks adopt a coordinated approach to key issues on the agenda. Regarding current account imbalances, it urges that Asian leaders pursue structural economic reforms that can expand regional trade and final demand, while allowing real exchange rates to play a facilitating role in the adjustment process. Asia needs stronger regional and global financial safety nets to reduce the need to accumulate foreign exchange reserves.
To promote trade and investment liberalization, Asian leaders should continue to support the Doha Round, while also accelerating trade integration via the consolidation of bilateral and plurilateral agreements into a region-wide agreement, and ensuring that these agreements be as open and non-discriminatory as possible as well as WTO-consistent.