asian+regionalism final 0344am

8/9/2019 Asian+Regionalism Final 0344am

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EMERGING ASIANREGIONALISM

Farizatul AQMA

Sena SUH

Youngsik KIMSumi KWON

Yeoul KANG

Youngbm CHO


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Contents

I. Definition of Regionalism

II. Executive Summary

III. Why Asian Regionalism?


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NRegionalism

Cooperation Integration

EconomicPolitical

Regional

+

&


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Drivers1

.

2.

Challenges

3

.Options

Interconnectivity Endowment Low trade barriers Transport and communication links

Production network integration Open global system of trade &

investment

Consolidating FTAs Cross border infrastructure

N


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Drivers1

.

2

.Challenges

Improvements in financial markets

Monitor financial markets

Harmonization of financialregulations Minimum standards ABMI & ABF Regional infrastructure

Efficient financial systems

MARKET


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Drivers1

.

2

.Challenges

3

.Options

Improvements in financial markets

Monitor financial markets

Harmonization of financialregulations Minimum standards ABMI & ABF Regional infrastructure

Efficient financial systems

Expand ABMI & ABF

New institution

MARKET


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Drivers1

.

2

.Challenges

3.

Options

Stable microeconomics

Global payments imbalances

- Exchange rate adjustments- Chiang Mai Initiatives

Monitor global and regional

developments

Asian Secretariat for EconomicCooperation

Economic Review & Policy Dialogue

C


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Offer capabilities in addressing issues Framework for regional cooperation Match challenges and diversity Creates healthy competition

Remain flexible Physical connectivity

Unification of regulations and currencyWorkers mobility

Long term and pragmatic initiatives

COOPERATION

Single Market

ASEAN+3 & East AsianSummit

ASEAN


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Why Asian regionalism?

16 economies including ASEAN, China, Hong Kong, India,

Japan, Korea and Taipei 87% of the regions population

96% of its output

More than half of its trade

Rapid growth of Asia

Economy, Population,Output,

Economic growth rates

Demand for sustainableeconomic growth,

Play a larger role in globaleconomic leadership

Regionaleconomic

cooperation

Integrating Asia


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Integrating Asia: basic indicator 2007


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Connected through market

Focused on finding new and flexible forms of cooperation

Complement global relationships

Build bridge that connect Asian economies and the world

Integrating Asia / Asian regionalism

DynamicOpen Pragmatic

DiverseOutward-looking Vibrant

Main characteristics

Asian economies


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Not just to Asia, but to the world

Sustainable growth of the region

Stability Equality

Immense intellectual and economic resources

Power and stabilize the global economy by boosting

productivity, raising living standards and reducing poverty

Everyones interest (cohesive, stable and productive Asia)

Benefit of Asian regionalism

Integrating Asia / Asian regionalism


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How regionalism can benefit Asia

Cooperation requires trust, innovation, compromise and time

Benefits extend to developing Asian economies that are notyet part of the regions integrating core

Link competitive strengths of its diverse economies Connect the regions capital markets Cooperate in setting exchange rate and macroeconomic policies Pool the regions foreign exchange reserves Exercise leadership in global decision making Build connected infrastructure Create regional mechanisms


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Incentives and the leverage to play a bigger role Generate productivity gains, new ideas and competition Contribute to the stability of global financial markets Diversify sources of global demand Provide leadership to help sustain open global trade and financial

systems Create regional mechanism to manage health, safety and

environmental issues

Help to sustain global economic progress

How regionalism can benefit the world


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History of the economics of regionalism

Regionalism must NOT lead to protectionist blocs No more fortress Asia

The economics of regionalism

Preferential trade blocs,Discriminatory currencyblocs in 1930s

Collapse ofinternational trade and

financial flows

GATT

post-war globaleconomic system

(nondiscrimination)


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Important priorities for regional collective action

Provide public goods Manage the spillover effects of economic activity

Coordinate regional policy approaches to projects Liberalize trade and investment Add value to national policy making

Regional cooperation is not a goal to be pursued for itsRegional cooperation is not a goal to be pursued for itsown sake; it is a means for achieving more fundamentalown sake; it is a means for achieving more fundamentalobjectivesobjectives

The economics of regionalism


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The challenge of cooperation

Trade and Investment

Financial integration

Macroeconomic policy

Social and environmental policy


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The challenge of cooperation-Asias

complexity

The loss of cooperation National sovereignty &narrow policy option

Ex) Unable to issue own currency Cooperation is likely to evolve gradually Using frameworks and forum

Characteristics of Asian Regionalism

Pragmatic & cautious The public appears to have positive expectations

to regionalism


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Perceptions of economic

interdepence in Asia

Source: Gartner


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Comparison with EU

Advantages of European Union

-Similar economic status

-Christianity-Roman Alphabet

-Open minded

-Closer cooperation in policy making-Euro currency


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The challenge of cooperation -Risk

Global demand & financial stability Falling dollar, rising energy, food and other

commodity

Environmental Damage Social instability

The unexpected factor

Asian Financial crisis Regional cooperation is a form of insurance

asian+regionalism final 0344am

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