Professional Documents
Culture Documents
o rg
ADBI News
2012 Volume 6 Number 2
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
SEMINAR
ADBI Dean Kawai (far right) joins a panel of distinguished speakers at ADBI on 5 June to discuss Myanmars economic development and the role Japan can play to support the countrys transition to becoming an open and dynamic economy.
Myanmar
President Thein Seins administration, established in April 2011, has ushered in an era of rapid political and economic reforms, putting the country on a new path of normalization and re-engagement with the regional and global economies. The European Union and the United States have suspended their long list of sanctions that they had imposed on the country since the late 1980s. Japan recently waived a large part of Myanmars debt arrears and started a policy aimed at strengthening economic and political relations via renewed financial and technical assistance. The impact Myanmars changes will have on Asia and the world was the focus of the seminar, Changing Myanmar: Challenges and Opportunities, which was organized by ADBI and the Japan Chamber of Commerce and Industry (JCCI). The event, held at ADBI on 5 June 2012, attracted more than 170 participants and generated an intense debate among the attendees. Dean Kawai chaired the event and Kunio Senga, director general of ADBs Southeast Asia Department, gave the closing remarks. Two distinguished speakers from Myanmar, who are advisers to President Thein Sein, presented the countrys plan for economic growth. Tin Htut
Oo, chairman of the National Economic and Social Advisory Council, spoke on the countrys new approach to inclusive economic development. U Win Aung, president of the Federation of Myanmar Union of Chambers of Commerce and Industry, highlighted business opportunities for foreign companies in the new Myanmar. A panel of three distinguished Japanese speakers, Daikichi Momma, Deputy
In this issue
Changing Myanmar Narrowing the Development Gap Asian Development in the Decades Ahead Asia-Pacific Forum on Financial Inclusion Promoting Fair Market Competition Media Coverage Distinguished Speaker Recent Books Upcoming Events Recent Working Papers What Next for the WTO and Doha? 12 2 3 3 4 4 5 6 7 7 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
Director-General, International Bureau, Ministry of Finance; Yoshio Wada, Deputy Director-General, Southeast Asia and Pacific Department, JICA; and
Akifumi Nakanishi, Director, Asian Business Development Department, Daiwa Institute of Research, spoke on Japans role in supporting Myanmars transformation. The seminar revealed that Myanmars challenges are difficult but not insurmountable. While the country lags its Asian neighbors in almost every economic indicator, the country is rich in natural resources and is strategically located between East and South Asia, particularly the Peoples Republic of China and India, offering a great opportunity for local businesses to serve expanding markets. Japanese experts at the seminar said that Japan, through its public and private-sector operations, is keen to assist Myanmar undertake the process of transition, normalization, and re-engagement. ADB, which has recently opened an office in Yangon and is about to open another in the capital of Nay Pyi Taw, is also committed to help in the effort. The seminar emphasized that Myanmars most urgent needs are human resource development, job creation, restoration of livelihoods, institutional strengthening, and infrastructure development. Dean Kawai stressed that in planning and implementing transformation, a crucial prerequisite to sustainable and inclusive development is the attention paid by the authorities to ensuring that both Myanmar and its people benefit and are a part of the process. I
For more information on this conference please visit: www.adbi.org/event/5068.changing.myanmar.challenges. opportunities/.
Myanmar is undergoing swift political and economic reforms that are putting the country on track to re-engage with the world.
EXPERTS MEETING
Resources Management, was held at ADBI on 56 June. Meeting participants discussed the need to identify local partner institutions, scholars, and country coordinators to implement the pilot phase in the CLMV countries. Participants explored four themes under Agricultural Productivity and Natural Resources Management: policies and institutions; market development; investment and finance; and technology and extension. I
For more information on this event please visit: www.adbi.org/event/5067.supporting.equitable.economic. dev.asean/.
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
FORUM
poverty reduction through emphasis on gender development, effective environmental management, combating corruption, and better education especially for women. Participants noted that if Asia pursues inclusive growth, effective use of resources, good governance, and regional cooperation, it is expected to become an affluent region by 2050. Wignaraja encouraged ADB-JSP to apply their considerable skills in making Asia free of poverty. He encouraged these future leaders to rise to the challenges and translate these to opportunities. Much work is to be done to ensure Asia takes the right road to inclusive growth in a constantly evolving global and regional environment. I
FORUM
Republic of China, on 2527 June, to discuss how financial inclusion can reduce poverty and improve the lives of the poor. Participants explored micro-finance regulations, consumer protection, and innovative ways to promote financial literacy. The forum was jointly organized by ADBI, Asia-Pacific Finance and Development Center, and APEC Business Advisory Council. I
For more information on this event please visit: www.adbi.org/event/5042.asia.pacific.forum.financial. inclusion/.
More than 80 participants from 25 countries attended the Asia-Pacific Forum on Financial Inclusion: Approaches, Regulations and Cross-Borders Issues to explore ways to reduce poverty through micro-finance regulations, consumer protection, and financial literacy.
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
CONFERENCE
Senior officials from East Asian economies discussed competition policy and fair market competition at two conferences organized by ADBI, Japan Fair Trade Commission, and Malaysia Competition Commission.
Fair market competition is crucial to economic growth. Maintaining a level playing field nurtures and promotes the private sector, particularly small and medium-sized enterprises, in East Asia. Senior officials from East Asian economies met to discuss challenges in competition policy at The 7th East Asia Conference on Competition Law and Policy and The 8th East Asia Top Level Officials Meeting on Competition Policy, which were held in Malaysia on 23 May. The events were jointly organized by ADBI, Japan Fair Trade Commission, and Malaysia Competition Commission. The 7th East Asia Conference on Competition Law and Policy focused on combatting cartels in
East Asia. And the 8th East Asia Top Levels Officials Meeting on Competition Law examined competition policy in East Asia and ways to augment technical cooperation on competition policy among economies of the region. Attending the meetings were senior officials from Brunei Darussalam; Cambodia; Peoples Republic of China; Indonesia; Japan; Lao PDR; Malaysia; Mongolia; Myanmar; the Philippines; Republic of Korea; Singapore; Taipei,China; and Viet Nam. I
For more information please visit: www.adbi.org/event/5041.east.asia.meeting.competition. policy.law/.
Media Coverage
Dean Kawai was interviewed by The Nikkei Weekly, the Nikkei Newspaper, and Newsweek Japan. He was also interviewed by The Phnom Penh Post for the feature article, China in the world economy. The ADB-ADBI draft highlights book, Asean, the PRC and India: The Great Transformation?, was reviewed by the Asian Sentinel website, and the review was picked up by The Jakarta Globe.
4
A South China Morning Post article cited the ADBI working paper, How the iPhone Widens the United States Trade Deficit with the Peoples Republic of China, by Yuqing Xing and Neal Deter, which was published in 2010. Kyodo News, The Japan Times, and The Business Times (Singapore), ran stories on the seminar, ADBI SeminarChanging Myanmar: Challenges and Opportunities, at ADBI on 5 June.
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
DISTINGUISHED SPEAKER
unemployment. Energy prices are likely to be volatile and to rise in the long term. As interdependence increases it will involve not only the regional economies, but, to some extent, outside economies such as the United States. A new continentalism has Security concerns emerged based on an are another potentially integrated Central, East, and South Asia, said Calder. destabilizing factor. Several countries in the region possess chemical, biological, and nuclear weapons with relatively weak controls and fail-safe systems. Nonetheless, despite the uncertainty and the existence of possible destabilizing issues, a much more interdependent Eurasia is being born in the post-Soviet era. Multilateral institutions have an important role to play in this growing interdependence. The Asian Development Bank (ADB) is the most important one. In a Eurasia not constrained by the geopolitical barriers of the Cold War, infrastructure has emerged as key to strengthening connectivity and ADB and ADBI have been doing very interesting and useful work on Asian infrastructure. The growth of many Asian economies is altering energy demand patterns with great stress being laid on infrastructure pipelines, long-distance electric power transmission, superconductivity, and superhighway networks, among others. As these infrastructure facilities are built and brought on-stream they will intensify the trend toward energy interdependence in continental Asia. Post-Fukushima, Japan may also tap into this energy network. Interdependence in continental Asia is rising and the role of multilateral institutions in stabilizing that process will be crucial. A more integrated and interdependent Asia will be significant in geopolitical terms and will mean a greater role for Asia in the world. Given the various destabilizing elements and natural tensions among the countries in the region, the robust engagement of multilateral institutions is needed to drive the integration process. I
For more information on this seminar please visit: www.adbi.org/event/5063.calder.distinguished.speaker/.
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
Recent Books
Implications of the Global Financial Crisis for Financial Reform and Regulation in Asia
ADBIs new book, Implications of the Global Financial Crisis for Financial Reform and Regulation in Asia, was launched at ADBIs Tokyo office on 26 April. Dean Kawai gave the opening and closing remarks. Cinnamon Dornsife, professor at the Paul H. Nitze School of Advanced Studies, Johns Hopkins University, moderated the panel discussion. In light of the global experience of the global financial crisis, this book develops concrete recommendations for financial sector reform and regulation in Asian economies aimed at preventing the recurrence of systemic financial crises, improving the ability to manage and resolve crises, managing capital flows and promoting the development of Asian bond markets. The focus of the book is on longer-term structural measures. It explores areas such as the scope for regional monitoring and cooperation; deepening integration of Asian bond and money markets; liberalization of capital flows; and issues related to macroprudential oversight, regulatory structure and cooperation as well as the role of state intervention in crisis resolution in the financial sector. The need for and impacts of regulations on innovative financial products and specific investor groups such as hedge funds, ways to reduce systemic risk of pro-cyclicality of regulation and ways to improve the infrastructure and regulatory environment for local currency bond markets are also examined in depth. I
Read or order Implications of the Global Financial Crisis for Financial Reform and Regulation in Asia at: www.adbi.org/book/2012/03/26/5028.gfc.financial.reform. regulation.asia/.
Dean Kawai and David Mayes, professor at the University of Auckland, applaud as Hyouk-Se Kwon, the Governor of the Korean Financial Supervisory Service, cuts the ribbon to launch ADBIs new book, Implications of the Global Financial Crisis for Financial Reform and Regulation in Asia.
Shaping the Future of the Asia and the Pacific-Latin America and the Caribbean Relationship
Economic ties between Asia and Latin America and the Caribbean (LAC) have reached a turning point. In a mere decade, Asia has become LACs second-largest trading partner. This dynamic trade relationship has boosted LACs strategic and economic importance to Asia. To expand these gains, governments must play a more decisive role. Their participation is critical in strengthening and balancing the three key pillars of any successful integration initiative: trade, investment, and cooperation. Shaping the Future of the Asia and the Pacific-Latin America and the Caribbean Relationship identifies the challenges and opportunities in each of these pillars while drawing attention to the benefits of balancing their development. I
6
Download Shaping the Future of the Asia and the Pacific-Latin America and the Caribbean Relationship at: www.adbi.org/files/2012.05.05.book.shaping.future.asia.lac. relationship.pdf.
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
30 August
Innovative Approaches to Managing Longevity Risk in Asia: Lessons from the West
Author: Amlan Roy
This paper discusses longevity risk, why it is important, and lessons to be learned by Asian countries from the experiences of the West. Increasing and uncertain longevity has emerged as a key risk affecting individuals, pension plans, insurers, and governments in the developed and emerging world. The author discusses progress in the field of longevity modeling and the merits as well as drawbacks of these models.
Read Working Paper 353 at www.adbi.org/working-paper/2012/ 04/13/5046.innovative.longevity.risk.asia/.
Exchange Rate Coordination in Asia: Evidence using the Asian Currency Unit
Author: Abhijit Sen Gupta
This paper evaluates the extent of exchange rate coordination among Asian economies using a hypothetical Asian Currency Unit. Rising interdependence among Asian economies makes it vital for these economies to have a certain degree of exchange rate stability. However, the empirical evidence using an Asian Currency Unit suggests a widening deviation in exchange rate movements of the Asian currencies.
Read Working Paper 356 at www.adbi.org/working-paper/2012/ 04/19/5052.exchange.rate.coordination.asia/.
Engaging Small and Medium Enterprises in Production Networks: Firm-level Analysis of Five ASEAN Economies
Author: Ganeshan Wignaraja
The Association of Southeast Asian Nations (ASEAN) small and medium enterprises (SMEs) are under scrutiny for their engagement in production networks following recent emphasis on increasing intraregional trade, rebalancing, and inclusive growth in Asia. Using a data set covering 5,900 companies in five ASEAN economies at different stages of development, this paper analyses the participation of SMEs in production networks, determinants, and policy implications.
Read Working Paper 361 at www.adbi.org/working-paper/ 2012/06/01/5076.engaging.small.medium.enterprises/.
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
SEMINAR
What next for the WTO and Doha? Alejandro Jara, Deputy Director General of the World Trade Organization, acknowledged during a seminar at the ADB Institute on June 6 that the WTO cannot address new rules that befit a significantly changed trading system without first concluding the Doha Development Agenda. Jara said the WTO must address a new agenda on investment rules, competition policy, climate change, government subsidies, export duties, and other regulatory issues. The global trading system needs better rules in many different areas but progress has been stymied by the lack of political will on the part of major governments to draw the
The global trading system needs better rules but progress has been stymied by the lack of political will to conclude the Doha negotiations, said Alejandro Jara, Deputy Director General of the World Trade Organization.
Doha negotiations to a close. Still, he argued that the WTO is a global public good that protects trade. If it did not exist, it would have to be created. The rules of the game may be imperfect, but if it is not there, there will be chaos, he said. While some problems may be addressed bilaterally or regionally through preferential trading arrangements, some issues, such as reform of domestic agriculture support or subsidies, can only be effectively tackled multilaterally. The divide between developed and developing countries in the WTO that prevailed in 2001 is no longer valid as the WTO membership expects more from countries like Brazil, the Peoples Republic of China, and India. But this should not overshadow the fact that many developing countries in the WTO need technical capacity assistance. The WTOs effort toward greater analytical capacity is aimed at helping developing countries assess the impacts of negotiating positions on their trade and economy. When trade partners ask you for such and such concessions, when you do not understand how it will impact your country, the rational reaction is to say no, Jara said. I
For more information on this seminar please visit: www.adbi.org/event/5062.jara.next.doha.round.wto/.
ADBI News
G G G G
ADBI Online To read ADBI News online, go to www.adbi.org/newsletter/ For information, send an e-mail to info@adbi.org or go to www.adbi.org For publications, go to www.adbi.org/publications/ To read daily development-related news and analysis, go to www.adbi.org/enewsline.cover. Sign up to receive E-Newsline daily. Register for free e-mail alerts when new material is posted on our website. www.adbi.org/email.notification/register.php
ADBI News reports quarterly on the activities of the Asian Development Bank Institute. The views expressed in this newsletter do not necessarily reflect the views or policies of the Asian Development Bank Institute or the Asian Development Bank. Materials may be reprinted with credit given to ADBI News. To send comments or to request a free subscription, e-mail adbinews@adbi.org; fax a message to +81-3-3593-5571; or write to ADBI News, Kasumigaseki Building 8F, 3-2-5, Kasumigaseki, Chiyoda-ku, Tokyo 100-6008, Japan. For the web version, go to www.adbi.org/newsletter/.