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ADBI News
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2013 Volume 7 Number 2

Think Tank Leaders Assess Asias Future

SUMMIT

The heads and senior officials of more than 40 think tanks from 23 countries met at ADBI on 1214 June to discuss the opportunities and threats facing countries in Asia.

The

first Asia Think Tank Summit, jointly organized by ADBI and Think Tanks and Civil Societies Program at the University of Pennsylvania (TTCSP), was held at ADBI, 1214 June. The heads and senior officials of more than 40 think tanks from 23 countries met to discuss the opportunities and threats facing countries in Asia. ADB President Takehiko Nakao said in his keynote address that think tanks have an important role to play in supporting policy development and the dissemination of ideas. Through interactions with other think tanks, they can also provide regional and global perspectives on critical issues. Dean Masahiro Kawai delivered the welcome and closing remarks, and chaired the roundtable discussion. The summit generated constructive debate on the ongoing economic and financial crisis, as well as regional and global developments in a changing world. The participants brought diverse views that will help provide clear policy directions aimed at tackling longstanding regional problems. Following the summit, a policy dialog was held on 14 June that was open to the media and public. A select group of the distinguished summit participants shared their views on the Asia Think Tank Summit. Dean Masahiro Kawai delivered the welcome and closing remarks, and chaired the

policy dialog. ADB President Nakao attended as a panelist.

In this issue
Think Tank Leaders Assess Asias Future Supporting Free Trade in Asia Strengthening Connectivity and Disaster Risk Management Enhancing Disaster Risk Management Tackling Transboundary Pollution in Asia Capital Market Reform Effective Implementation of Public-Private Partnerships Expediting Trade in Central Asia Revamped Asian Development Review Introduced Recent Publications ADBI in the News Selected Upcoming Events Recent Working Papers Boosting Microfinance in Asia 12 2 3 3 4 4 5 5 6 6 6 7 7 8
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Left to right, Masahiro Kawai, Dean, ADBI; Jim McGann, TTCSP Assistant Director; ADB President Takehiko Nakao; Mai Lu, Secretary General, China Development Research Foundation; Takashi Shiraishi, President, IDE-JETRO; Joo-Hoon Kim, Senior Vice President, Korea Development Institute.

Supporting Free Trade in Asia

FORUM

Asias growing regional integration was the focus of the Asia FTA Forum 2013, co-organized by ADB, ADBI, and Boao Forum for Asia, in Qingdao, Peoples Republic of China, on 20 June. ADBI Dean Masahiro Kawai delivered a keynote address where he argued for the consolidation of Asias multiple free trade agreements (FTAs) into a single Asia-wide FTA. Jianhua Yu, Deputy Representative for PRCs International Trade, and Yucheng Le, PRC Assistant Minister for Foreign Affairs, also gave keynote addresses.
At the Asia FTA Forum 2013, Dean Masahiro Kawai called for the consolidation of Asias multiple free trade agreements into one Asia-wide FTA. For more information on this event, please visit: www.adbi.org/event/5715.asia.fta.forum.2013/.

Strengthening Connectivity and Disaster Risk Management

Preparing for Disasters The countries of Asia and the Pacific are exposed to risks from natural disasters. Of the world's ten deadliest natural disasters since 1980, seven have struck in Asia. The ADBI seminar, Towards Developing and Implementing Integrated Disaster Risk Management in Asia and the Pacific, held at the ADB Annual Meeting in Delhi, India, on 2 May, highlighted ADBI
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ADB ANNUAL MEETING

efforts to help governments integrate disaster risk management into national development strategies. Disaster Risk Management in Asia and the Pacific, a joint ADBADBI issues paper, was disseminated at the event. Bringing Asia Together In the wake of the 2008 global financial crisis, it is clear that Asian economies must rely more on domestic and regional demand to secure growth. To examine

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how closer regional connectivity and economic integration between South Asia and Southeast Asia can play a key role in achieving this goal, ADBI organized the seminar, Connecting South Asia and Southeast Asia, at the ADB Annual Meeting, in Delhi, India, on 5 May. At the seminar, Dean Masahiro Kawai presented Connecting South Asia and Southeast Asia, a joint ADBI and ADB interim report that analyzes how closer regional connectivity and economic integration between

South Asia and Southeast Asia can benefit both subregions.

Download Disaster Risk Management in Asia and the Pacific issues paper here: www.adbi.org/files/2013.05.02.rp75..disaster.risk. management.asia.pacific.paper.pdf. Download the Connecting South Asia and Southeast Asia interim report here: www.adbi.org/files/2013.05.05.book.connecting.south.asia. southeast.asia.interim.report.pdf.

ADBI held seminars on disaster risk management and economic integration at the ADB Annual Meeting in Delhi, India, 25 May.

Enhancing Disaster Risk Management

WORKSHOP

In view of the severe economic and human impact of natural disasters, it is vital to formulate and implement country-based and region-wide strategies on disaster risk management. To address this concern, ADBI held the Disaster Risk Management in the Asia and Pacific Region: Policy Dialogue Workshop on 24 June. Dean Masahiro Kawai spoke on the need for an integrated approach to disasters. Such an approach includes financing and insurance-related instruments, coordination between central and local governments, and regional cooperation initiatives. ADBI, together with ADB, is preparing a major study of disaster risk management, of which outputs will include a major report. Professor Ian Davis of Oxford Brookes University is leading the project, which is being carried out in association with the Regional and Sustainable Development Department at ADB headquarters.

ADBI Senior Research Fellow Minquan Liu assesses progress on the disaster risk management study. For more information on this workshop, please visit: www.adbi.org/event/5749.drm.asia.pacific.policy.dialogue.w orkshop/. To download the disaster risk management issues paper, please visit: www.adbi.org/files/2013.05.02.rp75..disaster.risk.manageme nt.asia.pacific.paper.pdf.

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Tackling Transboundary Pollution in Asia

Fast growing Asia is facing mounting pollution problems. Transboundary pollution that crosses national or state boundaries has become increasingly important not only in terms of human health but also good country neighborliness. The forest fires and smoke haze Professor Euston Quah argues that an emanating from Indonesia international pact is and enveloping Southeast needed to mitigate Asia, and acid rain from transboundary pollution. eastern China to western Japan as well as inter-river contamination in

DISTINGUISHED SPEAKER

Indochina are some examples of transboundary pollution. Professor Euston Quah, head of the Department of Economics at Nanyang Technological University of Singapore, presented his latest findings on transboundary pollution at a distinguished speaker seminar at ADBI on 13 May. He argues that an international agreement is needed to mitigate the impact of transboundary pollution Asia must find ways to on Asian economies. prevent pollution from
crossing borders. For more information on this seminar, please visit: www.adbi.org/event/5635.quah.distinguished.speaker/.

Capital Market Reform

Developments in Asias financial markets highlight the challenges authorities face to ensure the soundness of the financial system and to improve the effectiveness of regulatory approaches in the financial sector. The OECDADBI 13th Roundtable on Capital Market Reform in Asia, established by ADBI and OECD in 1999 in response to the 1997 Asian financial crisis, was held at ADBI, 45 April. Asian securities regulators, policymakers, practitioners, and scholars discussed how emerging Asian economies have strengthened their banking sectors, capital markets, and system-wide resilience to domestic and foreign financial shocks.

ROUNDTABLE

Roundtable participants came away with a better understanding of the implications of the global financial situation and regulatory reforms on capital market development and integration in Asia; post-crisis capital market development strategies for Asia; risk management practices of financial firms and regulatory implications; and closer cooperation among key stakeholders in regional initiatives to foster the development and linkages of capital markets.

For more information on this roundtable, please visit: www.adbi.org/event/5533.oecd.adbi.13th.roundtable/.

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Effective Implementation of Public-Private Partnerships

What should be the role of the public sector in managing public-private partnerships (PPPs) to deliver development results? To address this issue, a Roundtable on Public Sector Management and Public-Private Partnerships for Development Results was held in Tokyo, 2224 April. The roundtable was organized in collaboration with the Asia-Pacific Community of Practice on Managing for Development Results. Twenty-six representatives from 17 economies and knowledge

ROUNDTABLE

institutes attended the roundtable. Participants shared practical experiences and explored ways to effectively implement PPPs. Ten technical sessions were held on PSM and PPPs, including a field visit to a private financial initiative facility operated by Yokohama City, Japan.
For more information on this roundtable, please visit: www.adbi.org/event/5540.regional.roundtable.public.sector. mngt.ppp.dev.results/.

Expediting Trade in Central Asia

TRAINING PROGRAM

To further improve trade facilitation and regional integration in Central Asia, ADBI, in collaboration with the Government of Georgia and Central Asia Regional Economic Cooperation (CAREC), held the training program, Integrated Trade Facilitation at the border and behind the border, in Tbilisi, Georgia, from 10 to 13 April. CAREC is a partnership of 10 countries (Afghanistan, Azerbaijan, Kazakhstan, Kyrgyz Republic, Mongolia, Pakistan, Peoples Republic of China, Tajikistan, Turkmenistan, and Uzbekistan). The event highlighted Georgias trade facilitation reforms to expedite shipments along the E-newsline Brings Asia to Your Inbox
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CAREC corridor. Twenty-seven representatives from governments and trade ministries from 10 Central Asia economies, as well as 13 representatives from knowledge institutes and the private sector attended the training program. Participants shared practical experiences and explored ways to more effectively integrate trade facilitation approaches. Site visits to the Batumi Seaport and Customs Clearance Zone, Sarpi Border Crossing Point, and Tbilisi Public Service Hall afforded participants opportunities to observe firsthand key components of Georgias trade facilitation reform, including customs improvement and automation, border management strategy, and joint customs control. The lessons learned from the four-day event include the importance of employing modern equipment in improving customs, the utility of advanced risk management, and the success of anti-corruption measures as a driver of reforms.
For more information on this event, please visit: www.adbi.org/event/5535.integrated.trade.facilitation.action/.

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Revamped Asian Development Review Introduced

The first issue of a revamped Asian Development Review (ADR) was published in March. Cosponsored by ADBI and ADB, ADR is a professional journal for the dissemination of economic and development research relevant to Asia and the Pacific. Papers are intended for economists and social scientists in government, the

private sector, academia, and international organizations. ADR is published twice a year, in March and September, by MIT Press under the editorship of ADBI Dean Masahiro Kawai.

Recent Publications
The Future of the World Trading System: Asian Perspectives
The essays in this VoxEU eBook by leading Asian and international trade experts dissect key changes taking place in the world trading system. Edited by Richard Baldwin, Masahiro Kawai, and Ganeshan Wignaraja, this eBook analyzes the future of global trade and explores policy implications for Asia.

ADBI in the News

Dean Masahiro Kawai was cited in the Business Recorder article, Improved South-Southeast Asia Connectivity Key to Boosting Trade, Re-balancing Economy. He was quoted in the Nikkei Weekly article, Japan FDI Promotion Must Be Improved, and in the Nikkei Report article, ANALYSIS: PM Needs to Promote Japan as Attractive Investment Destination. Dean Masahiro Kawai and CBT Director Yuqing Xing were interviewed by Viet Nam TV on the outlook for Asia. China Daily published the op-ed, Tackling the Free Trade Challenge, by Dean Masahiro Kawai and Research Director Ganeshan Wignaraja. CBT Director Yuqing Xing was interviewed by Peoples Daily on RCEP negotiations. ADBI was cited in the Japan Times article, Japans Deficit in Visionary Thinking. The ADBI book, Monetary and Currency Policy Management in Asia, was reviewed by the journal Developing Economies. The ADBI book, Climate Change in Asia and the Pacific, was reviewed by the Maharashtra Times. ADBIs Asia Think Tank Summit was cited in the Kyodo News article, Asian Think Tanks Must Keep Interacting with Policymakers: ADB chief. Dean Masahiro Kawai appeared on Bloomberg TV to discuss the Japanese economy.

Research Director Ganeshan Wignaraja appeared on NHK World to discuss the Indian economy. Peter Morgan appeared on NHK World to discuss the impact of US monetary policy on Asia.

Asia Pathways posts published

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Selected Upcoming Events

25 July

ADO 2013 Update Part 1 Workshop (Tokyo) ADB Principal Economist Donghyun Park will present the outline of the ADO 2013 Update Part 1, which offers an outlook for the global and regional economy. Workshop on Connecting South Asia and Southeast Asia (Tokyo) This workshop will discuss the progress on the preparation of the chapters for the ADBADBI book, Connecting South Asia and Southeast Asia. 2nd Asian Development Review Development Issues Conference (Manila) This conference will consider research papers for possible publication in future issues of Asian Development Review.

29 July

12 August

Recent Working Papers

Association of Southeast Asian Nations, Peoples Republic of China, and India Growth and the Rest of the World: The Role of Trade
Author: Robert Z. Lawrence
This paper explores the impact of past and future growth in ASEAN, the People's Republic of China, and Indiathe ACI countrieson aggregate welfare, relative wages, and global emissions on the rest of the world. It outlines several analytical frameworks, considers effects over the past decade and, based on consensus forecasts, the implications of that growth for the rest of the world in the decades to come.
Read Working Paper 416 at www.adbi.org/files/2013.04.15. wp416.asean.prc.india.growth.role.trade.pdf.

Development Trajectories, Emission Profile, and Policy Actions: Singapore

Authors: Tilak K. Doshi and Neil Sebastian DSouza
Singapore is the most industrialized and urbanized country in Southeast Asia and is totally dependent on oil and natural gas imports to satisfy its energy needs. Its national energy policy framework seeks to find a balance between maintaining Singapores competitiveness, improving energy security, and enhancing environmental sustainability. This paper discusses where Singapore stands with regard to its energy consumption and CO2 emissions, its energy policies to date, and those that will be implemented in the near future.
Read Working Paper 424 at www.adbi.org/files/2013.05.30. wp424.emission.profile.policy.actions.singapore.pdf.

Lessons from the European Spaghetti Bowl

Author: Richard Baldwin
European economic integration inspires for the way it brought peace to a continent torn by long-standing rivalries. The lessons from Europe, however, cannot be applied directly as the degree of the European Unions supranationality is unthinkable elsewhere. This paper discusses how Europe overcame the problem of overlapping free trade agreements with the Pan-European Cumulation System.
Read Working Paper 418 at www.adbi.org/files/2013.04.24. wp418.lessons.european.spaghetti.bowl.pdf.

The Middle-Income Trap: Issues for Members of the Association of Southeast Asian Nations
Author: Tran Van Tho
The problem faced by many of the economies of ASEAN is whether they can avoid the middle-income trap and advance to a high-income level. How can they avoid the middle-income trap? This paper attempts to answer this question by building an analytical framework based on the factors that determine each development stage of an economy.
Read Working Paper 421 at www.adbi.org/files/2013.05.16. wp421.middle.income.trap.issues.asean.pdf.

How Low-Carbon Green Growth Can Reduce Inequalities

Authors: Venkatachalam Anbumozhi and Armin Bauer
Half of the worlds population lives below the poverty line, and Asia has the largest share. In pursuit of sustainable economic development and poverty alleviation, there is great potential among low-income households for green consumption, production, innovation, and entrepreneurial activity. This paper shows how an inclusive green growth model can uplift the poor through entrepreneurship and fiscal policy reforms.
Read Working Paper 420 at www.adbi.org/files/2013.05.15. wp420.low.carbon.green.growth.reduce.inequalities.pdf.

Governance and Economic Integration: Stakes for Asia

Author: Robert F. Owen
This paper assesses the nexus between changes in governance structuresat national and cooperative international levels and evolutionary processes of economic integration in light of regional policy targets in Asia. The analysis highlights the importance of improved governance as a key condition for effectively attaining an Asian Economic Community while arguing that the experience of the European Union offers valuable insights on integration.
Read Working Paper 425 at www.adbi.org/files/2013.05.31. wp425.gov.economic.integration.stakes.asia.pdf.

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Boosting Microfinance in Asia

TRAINING

Microfinance is an effective development intervention that enhances access to financial services by low-income individuals. ADBIs 9th Microfinance Training of Trainers: A Blended Distance Learning Course, which starts on 1 July and ends 30 November, will strengthen institutional capacity of microfinance in the Asia and Pacific region by making high-quality microfinance training accessible to a broad range of decision makers, professionals, and practitioners, as well as increasing the number and country coverage of accredited microfinance trainers in the region. This course will consist of three modules: (i) the World of Microfinance; (ii) Financial Analysis; and (iii) Institutional Analysis. The course will

feature a unique blended approach consisting of (i) self-paced study using the Microfinance Distance Learning package; (ii) online tutoring and e-discussion; (iii) meetings with international microfinance experts via video conference sessions; (iv) and local courses in selected countries. Course participants can earn an accreditation certificate and become a certified trainer of the UNCDF microfinance distance learning course.

For more information, please visit: www.adbi.org/event/5539.9th.microfinance.distance. learning.course/. To register for this training course, please visit: https://mftot.jointokyo.org/login/index.php.

ADBIs microfinance course aims to increase the number of accredited microfinance trainers in Asia.

ADBI News
Publisher: Yasuro Narita

ADBI Online

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/.

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