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Table of Contents
Dean’s Message ................................................................................................................................... 2 Advisory Council ................................................................................................................................... 3 Vision and Overview ........................................................................................................................... 4 Infrastructure for a Seamless Asia ....................................................................................................... 5 Working with ADB Headquarters and Other Knowledge Partners .................................................. 8 Research Highlights ........................................................................................................................... 12 Capacity Building and Training ........................................................................................................ 24 Outreach Highlights ........................................................................................................................... 32 Appendix 1: Organization Chart ...................................................................................................... 36 Appendix 2: Deans and Advisory Council Members ..................................................................... 37 Appendix 3: Brown Bag Lunches ...................................................................................................... 38 Appendix 4: CBT Events ..................................................................................................................... 39 Appendix 5: Selected ADBI Publications ......................................................................................... 41 Appendix 6: Top 30 Downloads of 2009 .......................................................................................... 48
List of Abbreviations
ADB ADBI APEC ASEAN CBT DAJA DMC EIC ERD EU FTA G20 GDP GFC IEI IMF IWRM MDG MFTOT MP3IC NEAR OECD OREI PPP PRC ROO RSDD SAARC SAFTA SME SPS WTO US “$” = US dollar Asian Development Bank Asian Development Bank Institute Asia-Pacific Economic Cooperation Association of Southeast Asian Nations capacity building and training Developing Asia Journalism Awards developing member country eco-industrial cluster Economics and Research Department European Union free trade agreement Group of Twenty gross domestic product global financial crisis international economic institution International Monetary Fund Integrated Water and Resources Management Millennium Development Goal Microfinance Training of Trainers Multilateral PPP for Infrastructure Capacity Building North East Asia Research Foundation Organisation for Economic Co-operation and Development Office of Regional Economic Integration public-private partnership People’s Republic of China rules of origin Regional and Sustainable Development Department South Asian Association for Regional Cooperation South Asian Free Trade Area small- and medium-sized enterprise sanitary and phytosanitary World Trade Organization United States
orld markets experienced great turbulence in 2009 as a result of the global financial crisis (GFC); many Asian economies were affected to varying degrees. Early in the year, the Asian Development Bank Institute (ADBI) responded quickly by adjusting its work program to include an extensive project on the crisis. Over the year, we conducted more than twenty conferences, workshops, and seminars with experts from Asian think tanks, regional policymaking agencies, the Asian Development Bank (ADB) headquarters, other international organizations, and prominent academics, researchers, and experts. These events analyzed the impacts of the crisis on the region, examined its medium-term implications for Asian economies, and made policy measure recommendations for the ways to address the crisis in the short-term and to set the stage for a normalization of financial market conditions and balanced, broadbased, and sustainable economic growth. Results of the project will be published in a series of books, the first of which will be Rebalancing for Sustainable Growth: Asia’s Postcrisis Challenge. In addition to this major project that cut across our work program themes, ADBI continued other activities under its three established priority themes of (i) inclusive and sustainable growth, (ii) regional cooperation and integration, and (iii) governance for policies and institutions. The flagship research project on infrastructure and regional cooperation, which culminated in the publication of Infrastructure for a Seamless Asia, examined key issues and challenges facing infrastructure development in Asia and the Pacific region in its continuing efforts to support regional cooperation. This project is a fine example of close collaboration between ADBI and ADB headquarters. I am encouraged that in the past year, ADBI actively pursued oppor tunities for better coordinated knowledge management and dissemination with ADB headquarters in an effort to enhance our synergy with the three other knowledge departments of ADB: Economics and Research Department (ERD), Office of Regional Economic Integration (OREI), and
Regional and Sustainable Development Department (RSDD). Examples of such collaboration are the joint project on Asia’s Free Trade Agreements and the high-level conference on The Impact of the Global Economic Slowdown on Poverty and Sustainable Development. The former collaboration is expected to lead to the ADB-ADBI joint publication of Asia’s Free Trade Agreements: How is Business Responding?; the latter resulted in the joint publication, Poverty and Sustainable Development in Asia: Impacts and Responses to the Global Economic Crisis. We conducted many workshops for senior-level officials from ADB developing member countries (DMCs) to enhance their understanding of important development issues, to identify appropriate policies or measures to address these issues, and to assist them in implementing them effectively. In response to the GFC, additional focus on this issue was incorporated into some capacity building and training (CBT) activities. ADBI has begun to vigorously seek the financial support of ADB member countries in addition to the existing support provided by the Government of Japan. Such support can be made by making voluntary contributions to ADBI’s special fund, setting up a trust fund with ADBI, or co-sponsoring ADBI programs. I maintain our full commitment to the quality of our activities by pursuing excellence, originality, and professionalism. This publication chronicles ADBI’s activities in 2009 to give a better understanding of our work in response to the global crisis and, more generally, how our work can influence policymakers for a better Asia and Pacific region.
Masahiro Kawai, Dean Asian Development Bank Institute
he functions of the Advisory Council are set out in Article IV of the ADBI Statute. The Council has seven members, one of whom is a senior official from ADB headquarters. The other members of the Advisory Council are distinguished practitioners or scholars in the field of development or management selected from among ADB’s member countries on a broad geographical basis. Members are appointed for two years and may be reappointed. They meet twice a year, once on the premises of ADBI and once at ADB headquarters.
In accordance with Article IV of the ADBI Statute, the Advisory Council provides advice and recommendations on the strategic directions of ADBI and reviews and comments on the ADBI work program. In the governance structure of ADBI, the Advisory Council plays a crucial role in guiding ADBI’s activities and ensuring that its work products and chosen projects are of the highest standards and relevance.
Japan India People’s Republic of China United States France Australia ADB
Masahiko Aoki President, International Economic Association K.M. Chandrasekhar Cabinet Secretary, Government of India Gang Fan Director, National Economic Research Institute Victor H. Frank, Jr. President, Asian Programs Foundation Eric Girardin Professor of Economics, Université de la Méditerranée, Aix-Marseille Andrew MacIntyre Director, Crawford School of Economics and Government, Australian National University Jong-Wha Lee Officer-in-Charge, Office of the Chief Economist
Other Advisory Council Members: K. M. Chandrasekhar and Gang Fan
ADB President Haruhiko Kuroda and ADBI Dean Masahiro Kawai pictured with AC 2008–2010 members. Standing (from left): Andrew MacIntyre, Eric Girardin, Masahiro Kawai, and Jong-Wha Lee. Seated (from left): Masahiko Aoki, Haruhiko Kuroda, and Victor H. Frank, Jr. ADBI extends condolences to the family, friends, and colleagues of Victor H. Frank, Jr., who passed away on 6 April 2010. Mr. Frank was a valued, longtime member of our Advisory Council. 3
Vision and Overview
DBI is increasingly recognized as a leader in creating and sharing knowledge on economic development in the Asia and Pacific region. ADBI conducts research and capacity building and training activities that contribute to ADB’s objective of poverty reduction. Its work focuses on the region’s medium- to long-term development issues of strategic importance and targets senior level policymakers. The objectives of ADBI, as set forth in its Statute, are to identify effective development strategies and to improve the capacity for sound development of the agencies and organizations in the DMCs. ADBI strives to be a laboratory for new ideas and to shape the debate on key emerging issues. It does this by responding to important challenges affecting many stakeholders in the region in a timely, operationallyrelevant, and policy-oriented fashion. ADBI emphasizes the quality, rather than the quantity, of its research and CBT programs by pursuing
excellence and originality in areas where it has a strategic advantage. In order to further strengthen its reputation as a trusted knowledge institution, ADBI continues to enhance its refereeing processes and postproject evaluation. ADBI increases the impact of its activities by working closely with leading policy-oriented think-tanks to develop sound and practical recommendations regarding policy reforms. In 2009, ADBI adopted a work program with three strategic priority themes: Inclusive and environmentally sustainable growth Regional cooperation and integration Governance for policies and institutions These priority themes form the basis for all ADBI activities. Private sector issues, as drivers of economic development, cut across all the strategic themes. ADBI’s financial statements can be found in the ADB Annual Report 2009, Vol. 2.
Infrastructure for a Seamless Asia
nder ADB and ADBI’s joint flagship study on infrastructure and regional cooperation, a p re p u b l i c a t i o n ve r s i o n o f t h e b o o k Infrastructure for a Seamless Asia was launched at ADB’s 42nd Annual Meeting in May 2009; the final version was released in September. This pioneering book is the first time a study on regional infrastructure such as this one has been undertaken. The book has been a great success since its launch, with over 50,000 downloads in the first month after its publication on ADBI’s website in September. The flagship study serves as a definitive knowledge product for stakeholders in the region and beyond, having received global attention from senior policymakers and business circles as well as media across Asia. A volume of the background papers conducted for the flagship study is currently in progress and further follow-up studies are being undertaken by ADB, the Economic Research Institute for ASEAN and East Asia (ERIA), and the Japan International Cooperation Agency (JICA). The book has been translated into Chinese and Japanese.
In view of Asia’s enormous, untapped economic potential and the ongoing global economic and financial crisis, Asia needs to build efficient, environment-friendly connections and networks across Asia and to the rest of the world to create a more competitive, prosperous, and integrated region. The “seamless” concept is relevant to Asia today as substantial efforts are being made to enhance regional economic integration and the creation of an Asian common market. The development of a pan-Asia network of infrastructure is essential to effectively realize these key drivers of the region’s future growth potential. Increasing infrastructure investment is essential for several reasons. First, efficient infrastructure enhances competitiveness and productivity, helps increase standards of living and reduce poverty by connecting isolated places and people with major economic centers, and promotes environmental sustainability. It also forms an important part of fiscal stimulus packages, especially in the case of prolonged crises,
ADBI Dean Masahiro Kawai; Sri Mulyani Indrawati, Minister of Finance for Indonesia and 2009 Chair of ADB’s Board of Governors; ADB President Haruhiko Kuroda; and Rajat Nag, ADB Managing Director General, launch the book Infrastructure for a Seamless Asia at ADB’s Annual Meeting in Bali, Indonesia. 5
Year in Review 2009
The study found that Asia needs to invest approximately $8.3 trillion in infrastructure (both national and regional) during 2010–2020. It covered four areas of infrastructure including energy, telecommunications, transport, and water and sanitation, for investments in both new capacity and replacements. According to the study, infrastructure investment in energy, especially electric power, at $4 trillion would account for almost half the total needed investment. In the 11-year period reviewed, investment in telecommunications, transport, and water and sanitation needed to meet demand would equal $1 trillion, $2.5 trillion, and $380 billion, respectively. These investments would be expected to produce substantial real income gains of about $13 trillion total for developing Asia during this period and after. For example, the People’s Republic of China (PRC) could see gains of $3.5 trillion and India of $3 trillion following the necessary investments, representing remarkable increases in real income. The investments would also have positive effects on real incomes in Indonesia, Thailand, Malaysia, and Viet Nam to the tune of $1.3 trillion, $1.2 trillion, $830 billion, and $400 billion, respectively. facilitating and driving economic recovery and helping to sustain medium- to long-term growth. Additionally, national and regional infrastructure investment helps to rebalance Asia’s growth by increasing regional demand and intraregional trade. The study analyzed the major challenges in developing r e g i o n a l i n f r a s t r u c t u r e — b o t h h a rd a n d s o f t infrastructure—through fostering regional cooperation toward a seamless Asia. The study covered ADB’s 44 DMCs across the Asia and Pacific regions as well as Japan and Brunei Darussalam. It evaluated existing regional infrastructure programs, policies, and institutions, making recommendations on what the region can do to meet these challenges and providing a framework for pan-Asian infrastructure cooperation. It discussed aspects of both hard and soft infrastructure— respectively, the long-term physical structures, equipment, and facilities (along with the economic services they provide) and the policy, regulatory, trade facilitation, and institutional frameworks that support the development and operation of physical infrastructure.
One of the major challenges to creating an Asia with fewer barriers to the free movement of goods, services, and people is in finding ways to finance such massive infrastructure investment. In this regard, the study emphasized that governments in Asia must bolster their collective efforts to mobilize the large pool of regional savings for viable regional infrastructure. It looks to strengthening national and regional bond markets, particularly local currency bond markets through the Asian Bond Market Initiative and the Asian Bond Funds, as a necessary step in creating a viable source of regional investment and tapping the region’s vast savings. Additionally, it detailed the need to identify and prepare “bankable” projects to encourage private financing and have an effective financing framework that can help mobilize the region’s vast savings and encourage public-private partnerships. The study noted that it is important to have a topdown, market-expanding, and demand-inducing approach for Asian connectivity to complement the bottom-up, market-driven approach that Asia has
Infrastructure for a Seamless Asia
largely followed to date. It presented a framework for pan-Asian infrastructure cooperation toward the creation of a seamless Asia. This requires a common vision, strong leadership, and shared commitment by Asian leaders; strong institutional capacities at the national level; coherent infrastructure development at national, subregional, and regional levels; and panAsian infrastructure strategies to prioritize investments and coordinate policies. Effective planning and implementation of projects to ensure “win-win” outcomes among participating countries can be done by addressing the issue of asymmetric distribution of projects’ costs and benefits, and managing socioeconomic and environmental impacts.
In view of Asia’s varied needs, circumstances, and political commitment to closer integration, subregional infrastructure programs have been proceeding at different speeds and on different tracks. Asia should create pan-Asian infrastructure networks by strengthening and integrating existing subregional programs. The book proposes establishing a pan-Asian infrastructure forum to help coordinate and integrate existing subregional infrastructure initiatives and an Asian infrastructure fund to mobilize international funds (public and private) and help prioritize, prepare, and finance bankable regional projects. The key message of the book is that now is the time to forge ahead with the goal of integrating this vast and diverse region—for the benefit of all its citizens and for a lasting and shared prosperity—by building pan-Asian infrastructure connectivity.
Working with ADB Headquarters and Other Knowledge Partners
With ADB Headquarters
ADBI activities continued to build on research and capacity building findings and knowledge products from relevant projects conducted by ADB headquarters (and vice versa). Dissemination and discussion of these products at ADBI events, which are regional in nature, helped to expand their outreach and impact. For 2009, ADBI collaborated with various departments and offices of ADB headquarters such as ERD, OREI, R S D D , Pr i v a t e Se c t o r O p e r a t i o n D e p a r t m e n t , St r a t e g y a n d Po l i c y Department, Central and West Asia Department, South Asia Department, and Southeast Asia Department.
Internally, ADBI’s Research and CBT departments collaborated and shared resources in undertaking and organizing their activities. Research fellows participated in selected CBT activities as resource speakers and as discussants to share relevant findings and outcomes of their research activities. These activities provided opportunities for research staff to gain knowledge from CBT participants about emerging development issues in the region. Some of the joint activities organized by the Research and CBT departments in 2009 included the Roundtable on Capital Market Reform in Asia, Developing Asia Journalism Awards (DAJA) and Training, and the Conference on Global Financial Crisis: Financial Sector Reform and Regulation.
Working with ADB Headquarters and Other Knowledge Partners
The Eco-Industrial Clusters: Policies and Challenges training program was organized in collaboration with ADB headquarters and other partners.
In 2009, ADBI continued efforts to strengthen external knowledge partnerships and to disseminate knowledge. Under the ADBI Visiting Researcher Program, 11 researchers from the Asia and Pacific region each spent up to 6 months at ADBI. ADBI continued to communicate with former visiting fellows and researchers to inform them of ongoing ADBI activities and to inquire as to the status of their ADBI working papers and the outreach activities that they conducted for their research papers. ADBI’s database of visiting fellows, researchers, and scholars is being used to strengthen its network of alumni and friends of ADBI.
Working with Other Partners
In 2009, ADBI collaborated with global and regional organizations, government and public agencies, and think tanks, universities, and other knowledge partners. Working with other partners broadens ADBI’s knowledge of development issues, raises the quality of research and CBT activities, widens its outreach, and enhances the impact of its activities. Examples of activities that ADBI conducted with external partners are: Research Department ADBI partnered with Brookings Institution, Cornell University, and the Institute for Financial Management and Research Trust to organize a conference on Financial Sector Regulation and Reform in Emerging Markets. Participants examined a range of issues including basic principles of financial regulation and the challenges
Year in Review 2009
of limited institutional development and regulatory capacity. The Accelerating Regional Integration in the Asia-Pacific Region was a joint effort by ADBI, the Inter-American Development Bank, and the Institute of Southeast Asian Studies. The conference explored modalities for accelerating regional integration and addressing difficulties such as limited market access and high transportation costs in the Asia and Pacific region. ADBI and the North East Asia Research (NEAR) Foundation organized a conference on the Global Financial Crisis and Regional Financial Architecture: The Future of the Dollar and the Choice of Asia, in which participants discussed the changing international financial architecture in the postcrisis era. ADBI, the East-West Center, the Asia-Pacific Center at Brandeis Univeristy, and Nihon University cooperated to organize the The People’s Republic of China, Japan, and the United States: Deeper Integration Workshop. Participants discussed the nature of existing structural links among the three countries and explored measures for improving the policy framework that supports their deepening economic integration. CBT Department The 2009 Developing Asia Journalism Awards (DAJA) event was organized in collaboration with InWEnt Capacity Building International. The awards ceremony was preceded by a fourday training workshop in which DAJA finalists exchanged views with experts on the poverty impact of the GFC, government responses to the GFC, infrastructure development, and climate change adaptation. ADBI jointly organized the third ASEAN Experts Group on Competition training workshop on Costs and Benefits of Competition Policy, Law, and Regulatory Bodies with the US Federal Trade Commission and the ASEAN Secretariat. The workshop introduced and shared country experiences on assessment of costs and benefits of competition policy and law, design of an effective competition law, and efficiency of competition regulatory bodies.
The Organisation for Economic Co-operation (OECD) and ADBI’s 10th Roundtable on Capital Market Reform brought together more than 100 policymakers and experts from Asia, the Americas, and Europe to discuss the causes of the GFC and its impact on and implications for capital market development in Asia. The Workshop on Promoting Financial Inclusion through Innovative Policies was organized in collaboration with the Asia-Pacific Economic Cooperation (APEC) Business Advisory Council and Alliance for Financial Inclusion. The workshop provided a peer-to-peer learning and knowledgesharing platform for policymakers to enhance their capacity to develop an innovative and enabling policy environment for financial inclusion in agent banking, mobile phone banking, diversifying providers, reforming public banks, financial identity regulation, and consumer protection.
Working with ADB Headquarters and Other Knowledge Partners
ADBI’s Partners Global Organizations: Alliance for Financial Inclusion (AFI); Bank for International Settlements (BIS); Food and Agriculture Organization of the United Nations (FAO); International Bureau of Fiscal Documentation (IBFD); International Labor Organization (ILO); International Monetary Fund (IMF); International Organization for Migration (IOM); Organisation for Economic Co-operation and Development (OECD); Public-Private Infrastructure Advisory Facility (PPIAF); United Nations Capital Development Fund (UNCDF); United Nations Conference on Trade and Development (UNCTAD); United Nations Development Programme (UNDP); United Nations Economic Commission of Europe (UNECE); United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP); World Bank, including its Institute, International Finance Corporation (IFC), and Multilateral Investment Guarantee Agency (MIGA); World Customs Organization (WCO); World Health Organization (WHO). Regional Organizations: Asia Europe Economic Forum; Asia Europe Foundation (ASEF); Asia-Pacific Economic Cooperation (APEC); APEC Business Advisory Council (ABAC); Association of Southeast Asian Nations (ASEAN); Asian Productivity Organization; Central Asia Regional Economic Cooperation (CAREC); Economic Research Institute for ASEAN and East Asia (ERIA); Colombo Plan Staff College for Technician Education (CPSC); European Central Bank (ECB); European Investment Bank (EIB); Inter-American Development Bank (IADB); Latin America/Caribbean and Asia Pacific Economics and Business Association (LAEBA); Network of Asian River Basin Organizations (NARBO); South Asian Association for Regional Cooperation (SAARC). National, Government, and Public Agencies: Australian Agency for International Development (AusAID); Bank of Italy; China Banking Regulatory Commission (PRC); Japan Centre for Economic Research (JCER); Japan Fair Trade Commission (JFTC); Financial Services Agency (Japan); Ministry of Agriculture and Cooperatives (Thailand); Ministry of Agriculture, Forestry and Fisheries; Ministry of Foreign Affairs; Ministry of Finance; Ministry of the Economy, Trade and Industry; National Tax Agency; United Kingdom Foreign and Colonial Office-Mumbai; US Agency for International Development (USAID); US Department of Justice; US Federal Trade Commission (FTC). Think Tanks, Universities, and Other Knowledge Institutions: Asian Institute of Technology (AIT); Asia-Pacific Finance Development Center (Beijing); Alliance for Financial Inclusion; Bank of Communications, New Finance Editorial Department (Shanghai); Bond University; Brookings Institution; Bruegel (Brussels); Centre d’Etudes Prospectives et d’Informations Internationales; Centre on Trade and Economic Integration (CTEI) of the Geneva-based Graduate Institute of International and Development Studies (HEID); Chulalongkorn University; City University of Hong Kong; Claremont McKenna College; Columbia University; Consultative Group to Assist the Poor, European Commission; Cornell University; East-West Center; Dankook University (Korea); Earth Institute, Columbia University; European Institute for Asian Studies; Hertie School of Governance (Berlin); Hitotsubashi University; Indian Council for Research on International Economic Relations (ICRIER); Institute for Financial Management and Research Trust (India); Institute for Global Environmental Strategies (IGES); Institute of Southeast Asian Studies (ISEAS); Institute for World Economics and Politics, Chinese Academy of Social Sciences (CASS); Keio University; International Development Research Centre (IDRC/CRDI); Japan Water Agency (JWA); Jasa Tirta I Public Corporation; InWEnt; Kiel Institute for World Economics; Korea Institute for International Economic Policy (KIEP); Korea University; Monash University; Nanyang Technological University; National Cheng Kung University; National University of Singapore; North East Asia Research (NEAR) Foundation; Policy Research Institute (PRI); RMIT University; Research and Information System for Developing Countries (RIS); Tax Academy (Malaysia); Tokyo Development Learning Center (TDLC); United Nations University (UNU); Universidad del Pacifico (Peru); Vienna Institute of International Economic Studies (VIIES).
n view of ADB’s long-term strategic framework 2008–2020 (Strategy 2020), under the vision of an Asia and Pacific free of poverty, ADBI has refocused its priority themes to align to these strategies. This strategy is complemented by three agenda items: inclusive and environmentally sustainable g row t h , re g i o n a l c o o p e r a t i o n a n d integration, and governance for effective policies and institutions. The research activities implemented in 2009 in support of the main thrust of ADB were initiated before and during the year. These research initiatives were conducted by ADBI research staff, visiting fellows and researchers, and consultants.
Research Activities, 2009
Conduct of Research Projects (each project consisting of several studies) Individual Studies Publications Books Research policy briefs Working papers Special publication Distinguished Speaker Seminars Major Conferences Project Workshops/Seminars Brown Bag Lunch Seminars
2 3 53 1 9 28 5 14
Projects with Cross-Cutting Themes
Flagship Project The flagship project was completed in 2009 and, in partnership with ADB, the prepublication version of Infrastructure for a Seamless Asia was launched at ADB’s 42nd Annual Meeting in May; the final version was released in September. The study outlined key policies and best practices the region should follow to guide policymakers involved in developing regional infrastructure. It recommended the establishment of a
pan-Asian infrastructure forum to coordinate existing subregional infrastructure initiatives. It projected an annual infrastructure investment in the region of $750 billion during 2010–2020, and proposed an Asian infrastructure fund to mobilize Asian and international funds. Global Financial Crisis Project In response to the evolving GFC, ADBI conducted research to evaluate the major aspects of the impacts of the crisis on Asia and organized 22 events under this project. The five major themes covered (discussed in
Key Recommendations from the Global Financial Crisis Project Some major recommendations that resulted from the project are: implement a regime for monetary policy that takes account of asset price movements to avoid creating bubbles; implement a system for macro-prudential surveillance and regulation of the financial sector; take steps to further deepen regional bond markets, including promotion of rating agencies, liberalization of issuing requirements, and harmonization of regulations and tax regimes; work toward achievement of regional agreements to liberalize trade and investment, including services trade; promote the strengthening of social safety nets and national pension systems to reduce the need for precautionary saving and to encourage consumption; promote environmentally sustainable growth by formulating effective renewable energy policies and resource efficiency strategies, and taking steps to cut trade barriers for green technology transfer; and promote the development of an Asian infrastructure investment fund to support infrastructure investment in the region.
Year in Review 2009
greater detail in a subsequent section) in the project are: (i) macroeconomic impacts and policy responses; (ii) real economy (sector) impacts; (iii) financial sector reform and regulation; (iv) social and environmental impacts; and (v) regional cooperation and architecture. The research results in general indicated a need for Asia to rebalance growth between production and spending (current account rebalancing); growth and environmental and climate change challenges (green growth); and growth and social inclusion (inclusive growth). In 2009, twenty-eight working papers were published under this project. A book based on the various research papers produced under this project focusing on Asia’s postcrisis agenda for reform is expected to be launched in 2010.
Patterns of Inclusive Growth in Developing Asia: Insights from an Enhanced Growth-Poverty Elasticity Analysis attempted to identify key factors that explain the observed wide variation in patterns of inclusiveness of economic growth in Asia. Results affirmed the significant impact of the level of quality of governance, public expenditures on social services, and contribution of agriculture to gross domestic product (GDP) growth, in that order of importance. Agricultural Impact of Climate Change: A General Equilibrium Analysis with Special Reference to Southeast Asia utilized recent worldwide estimates of the impacts of climate change on agricultural production to assess the economic effects of climate change for Southeast Asian countries through 2080. The paper revealed that in the coming decades, most Southeast Asian economies will suffer more welfare losses through deteriorated terms of trade and advocated that the region concentrate on reversing its current trend of declining agricultural productivity.
Inclusive and Sustainable Growth
Nine working papers have been published under this theme; three of these are highlighted below.
Regional Cooperation and Integration
Fifteen working papers were published under this theme; four papers are highlighted below. Reform of the International Financial Architecture: An Asian Perspective evaluated whether the international financial architecture is adequate for maintaining the financial stability of East Asian economies. The paper revealed that despite prior reforms, the existing international financial architecture remains inadequate for the needs of many emerging market economies. It recommended that East Asian authorities focus on the establishment of resilient national financial systems, integration of national financial markets, enhancement of regional liquidity and surveillance mechanisms, and regional exchange rate policy coordination. Asian FTAs: Trends and Challenges provided new evidence from firm surveys, analysis of specific agreements, and computable general equilibrium estimates to examine key trends and challenges of Asian free trade agreements (FTAs). It argued for strengthening the support system for using FTAs, rationalization of rules of origin (ROO), ensuring better coverage of agricultural trade issues, forging comprehensive “WTOplus” agreements, and establishment of a region-wide FTA. Impacts of Free Trade Agreement on Business Activity in Asia: The Case of Japan investigated how East Asian FTAs have affected the behavior of Japanese firms, including their affiliates operating overseas. The results revealed that presently, FTAs are neither well known nor well utilized by Japanese firms. There are several reasons for the low utilization; one of which is the cumbersome documentation requirements that hinder small- and medium-sized enterprises from utilizing FTAs. Assessing Foreign Direct Investment Relationships Between Japan, the People’s Republic of China (PRC), and the United States (US) examined in detail the huge investment flows in the PRC, particularly those from the US and Japan, to gain perspective on the relative
Strategic Choice of Freight Mode and Investments in Transport Infrastructure within Production Networks showed that the strategic choice of using an alternative transport mode does not necessarily induce lower access charges relative to the standard transport mode. It implied that interactions among infrastructure, investments, building transportation capacity costs, and industry-specific characteristics should be carefully assessed when planning transport infrastructure, investments to enhance competitiveness in export markets. Other papers dealt with a variety of policy issues such as demographic changes and pension reform, food safety and information and communications technology traceability systems, market-based strategy and biodiversity and environmental management, strategic choice of freight mode and investments in transport infrastructure, and stress and risk in public-private partnerships (PPPs) in infrastructure investment.
Year in Review 2009
importance of the inflows for the three countries. The results revealed a much higher degree of exportorientation for Japanese affiliates than for American affiliates; but, over time, there appeared to be a tendency toward convergence in the sales destinations of Japanese and American affiliates. Other papers under this theme dealt with a range of issues such as improving connectivity within Asia through investment in physical and soft infrastructure, options for narrowing the development gap in Asia, impacts of multiple overlapping FTAs on business activity in Asia, trade facilitation, PRC-US-Japan trade relations, and the impacts of exchange rate changes in countries supplying parts and components and in East Asian assembly economies.
challenges to achieve this end: the capture of solar power, development of fusion power, and carbon capture and sequestration. The Current Worldwide Financial and Economic Crisis Michael D. Intriligator, Professor of Economics, Political Science, and Public Policy at the University of California at Los Angeles and a Senior Fellow at the Milken Institute, shared his views on the GFC as it was unfolding. For Mr. Intriligator, two notable factors paved the way for the crisis: (i) the repeal of the US’ Glass-Steagall Act in 1999 that allowed financial institutions to engage in commercial and investment banking, and insurance products; and (ii) the US Federal Reserve Board’s low interest rate policy under Chairman Alan Greenspan. To hasten economic recovery, Mr. Intriligator recommended, among other things, greater banking transparency and leverage caps for financial institutions, closer supervision by the Federal Reserve, and international cooperation to rethink international finance. Governing the Global Economy: Problems and Solutions Pe t e r A . Pe t r i , C a r l J . Shapiro Professor at Brandeis University and Senior Fellow at the EastWest Center, discussed the re f o r m o f i n t e r n a t i o n a l economic institutions (IEIs) and explored their built-in structural limitations using “club theory.” For Mr. Petri, the “governance trilemma”—the difficulty of achieving universal, democratic, and decisive institutions— summarized the fate of IEIs. He used the “club theory” framework in his analysis, which offered two solutions toward more flexible and responsive institutions: (i) Tiebout or “voting with your feet” solution; and (ii) decentralized decisions. The first solution would create
Distinguished Speaker Seminars
This program is comprised of a series of seminars that aim to bring eminent persons to ADBI in order to encourage debate among policymakers, researchers, academics, think tanks, and other audiences interested in economic development challenges in the Asia and Pacific region. In 2009, eight internationally known economists and one political scientist delivered seminars on various policy and development issues. A brief description of each seminar is given below. The Challenge of Climate Change: What are the Priority Actions for Policymakers in Asia? What is the Asian Development Bank Doing? Bindu N. Lohani, ADB’s Vice President for Finance and Administration, highlighted two points i n h i s l e c t u r e : A D B ’s commitment to clean energy and environment, and policy recommendations to address climate change. He then concluded by highlighting the potential of technological innovations to make clean energy affordable and efficient and promoted the exploration of technology in efforts to address climate change. Mr. Lohani identified three major engineering
competing clubs to give countries more choices in addressing their needs. The second solution would allow subgroups within an institution to craft policies that not all members subscribe to. Short-Term Anti-Crisis Policy and Long-Term Growth of the PRC Fan Gang, Director of the National Economic Research Institute and Chairman of the China Reform Foundation, addressed key questions surrounding the current recession in the PRC. Mr. Fan shared his optimism on the PRC’s longterm growth. He revealed that a growth-accounting study showed total factor productivity and input growth to be behind high GDP growth rates. To hasten economic recovery from the crisis, he identified two structural impediments that must be resolved: the PRC’s high savings rate and low consumption rate. To promote household spending, the minimum wage and social welfare spending should be increased and income tax rates should be reduced. Mr. Fan concluded that current expansionary policies should be continued at least until 2010 in order to sustain growth. Determinants of US Exports to the PRC Barr y Bosworth, Senior Fellow and Robert V. Roosa Chair in International Economics at Brookings Institution, shared his findings on the determinants of US exports to the PRC. He pointed out that the share in GDP of US imports from the PRC is comparable to those of Japan and the European Union-15; but only Japan has mirrored the rising trend in its exports to the PRC since the mid-1980s. Of the three probable factors for the poor export showing of the US to the PRC—i.e., the composition of US exports, the role of American multinational corporations, and long
distance between the US and the PRC—only distance was found to play a significant role. Mr. Bosworth argued that the US’ poor export performance to the PRC is not particular to the PRC as the US has trade deficits with almost all the countries in the world and uncompetitive real exchange rates may have something to do with this. Market-Driven Integration in East Asia Eisuke Sakakibara, P r o f e s s o r a t Wa s e d a Un i v e r s i t y a n d f o r m e r Japanese Vice Minister of Finance, delivered a lecture on East Asian integration and examined how it fared with that of the European Union (EU). He pointed out that, unlike the institutiondriven integration of the EU, markets have played a pivotal role in creating Asian integration. It may have been the fortuitous effect of the 1985 Plaza Accord, which doubled the Japanese yen’s value vis-à-vis the US dollar in two years. Increasing costs at home and an appreciated currency attracted Japanese firms to expand their business operations overseas. Mr. Sakakibara believed that regional integration is irreversible. Intraregional trade will continue to increase, which makes regional cooperation very compelling. If trade in the region reached 60%, a common market could be forged in 30–40 years; although the form may differ from that of the EU. Look West: The Evolution of US Trade Policy Toward Asia in the Context of the Global Finalncial Crisis Vinod K. Aggarwal, Professor in the Department of Political Science and Director of the Berkeley APEC Study Center at the University of California at Berkeley, gave a lecture on the evolution of US trade policy toward Asia. Based on his proposed nomenclature of
Year in Review 2009
free trade agreements (FTAs), he divided the evolution into four phases: (i) multiproduct multilateralism from post-World War II until the mid-1950s; (ii) ”liberal protectionism” from the mid-1950s to the early-1980s; (iii) regionalism from the 1980s to the mid-1990s; and (iv) “competitive liberalism” from the mid-1990s to 2008. Mr. Aggarwal believed that the Trans-Pacific Economic Partnership between New Zealand, Chile, Singapore, and Brunei Darussalam (also known as the P4 group), can provide an avenue to develop an FTA in the Asia and Pacific region. Postcrisis Issues and East Asia Duck-Koo Chung, Chairman of the NEAR Foundation and Professor in the Graduate School of International Studies at Seoul National University, addressed the postcrisis issues confronting Northeast Asian countries—Japan, Republic of Korea (hereafter Korea), and the PRC—and laid out the challenges the region faced in securing stability and prosperity in the postcrisis era. For Japan and Korea, both need to address rising population dependency ratios, inefficient service sectors, and depressed consumption. For the PRC, its currency risks are amplified given its huge foreign reserves and its status as the biggest US creditor. The PRC needs to change its growth paradigm and commercialize its banks. He also identified two
salient factors influencing the process of creating an East Asian economic community: (i) the Chiang Mai Initiative Multilateralization; and (ii) regional exchange rate stability. Why the Euro is NOT the Next Global Currency? Jean Pisani-Ferry, Director of Bruegel and Professor of Economics at the Université Paris-Dauphine, lectured on the internationalization of the euro and its prospects of becoming a global currency. He argued that the euro is unlikely to be en route to become the next global currency. The data demonstrated that the euro dominated only in the euro region whereas the US dollar dominated trade everywhere else. He identified the factors, such as demographic decline and financial fragmentation, which limit the internalization of the euro, and posited remedies for each. He suggested that the eurozone should adopt a proactive stance towards “euroization” and should send out clear signals of assistance to partner countries in times of economic distress.
ADBI’s Research department organized 47 events in 2009, some of which were jointly organized with other institutions. Many of these events provided a platform for debate on emerging development issues in the region, and others were aimed at soliciting comments on the preliminary drafts of ADBI’s research outputs as part of ADBI’s research quality-control mechanisms and dissemination. Global Financial Crisis Under the GFC Project, 22 conferences were held under their respective themes; some of them are highlighted here. Under this thematic area, ADBI held six events that discussed a range of macroeconomic issues, including growth impact scenarios for the ongoing global economic crisis, lessons from previous crises, the prospects for rebalancing growth away from exports and policy recommendations for fiscal policy, monetary policy, and currency and reserve management. Participants
Macroeconomic Impacts and Policy
at the conference, Global Financial Crisis: Impacts, Lessons, and Growth Rebalancing, reviewed the effects of the global economic and financial crisis on Asia in order to set up a reference basis for future conferences dealing with appropriate policy responses. Generally, research showed that Asian countries were better poised to address problems prior to the crisis than were other countries, owing mainly to the reforms undertaken after the 1997–1998 Asian crisis. In the aftermath of that crisis, Asian governments tempered inflation and established prudent fiscal policies, ample foreign reserves, and healthy financial systems. The crisis mainly hit production in export-dependent sectors where authorities responded by easing monetary conditions and fiscal stimulus packages. The conference, Global Financial Crisis: Macroeconomic Policy Issues, developed concrete macroeconomic policy recommendations regarding ways to improve monetary policy frameworks, improve the effectiveness of fiscal policy, and improve the trade-offs between monetary policy independence, reserve management, and currency stability.
Year in Review 2009
Two events were completed under this theme. The first conference, Global Financial Crisis and Social Sector Policy Issues, reviewed evidence and analyzed the social impacts of the global economic and financial crisis on Asian countries. The conference discussed in detail the effectiveness of existing social sector policies and programs in Asia including social insurance, education, and health. The conference, Global Financial Crisis and Environmental Policy Issues, reviewed evidence on and analysis of the environmental impacts of the global economic and financial crisis. It discussed in detail the impacts on the environment from potential industrial restructuring and new product development such as green products and policy measures to ensure that a low carbon society will form an integral part of the recovery.
Social and Environmental Impacts Financial Sector Reform and Regulation
Three conferences were completed under this thematic area and addressed a range of issues, including the impacts of the GFC on small- and medium-sized enterprises (SMEs) and trade finance in Asian countries, labor market adjustment to the GFC, and implications of the crisis for investment and productivity. The conference, SMEs and Trade Finance Impacts, reviewed evidence and analyzed the impacts of the global economic and financial crisis on SMEs and trade finance in Asian countries. The conference, Labor Market in the People’s Republic of China (PRC) and its Adjustment to the Global Financial Crisis, discussed the development of the labor market in the PRC and assessed policy implications for dealing with long-term growth constraints, income inequality across regions, and the current GFC. It also discussed labor market adjustment experiences and lessons of other Asian countries, including Thailand, from the 1997–1998 Asian crisis that could be useful in dealing with the impacts of the ongoing GFC.
Real Economy (Sector) Impacts
The five conferences completed under this thematic area covered a wide range of issues including payment system, credit rating, capital market development, and financial sector reform and regulation. The conference, Credit Ratings, Credit Rating Agencies, and their Developments in Asia, reviewed issues about credit agencies, theoretical rationales, development, challenges, and future prospects in Asia. It focused on ways to increase the coverage of Asian issuers and to harmonize ratings across countries. The conference, Financial Sector Regulation and Reform in Emerging Markets, used the opportunity of the GFC to re-examine the basic principles of financial regulation—such as mechanisms for dealing with open capital accounts and measures to increase economic inclusion via micro finance—and assess their applicability to emerging markets.
Regional Cooperation and Regional and Global Architecture
The six events completed under this theme examined policy issues and recommendations for improving and/or developing regional economic policy and institutions aimed at preventing the recurrence of a systemic financial crisis in the region; improving the resilience of regional economies to external economic and financial shocks; and strengthening the basis for sustainable, long-term growth. The conference, Asian Architecture and Global Governance, jointly
organized with ADB’s OREI and ERD discussed ways for making IEIs more adaptable to the demands of a rapidly changing world economy, possible scenarios for the future global reserve system, and key conceptual issues related to the mechanisms that determine how national and regional governance impacts the international process. The conference, Europe in Crisis?: Lessons for Asia and from Japan, jointly organized with the Policy Research Institute of the Ministry of Finance, Japan, covered three thematic areas: (i) implications for the eurozone and Asia; (ii) implications outside the eurozone; and (iii) lessons for Asia from Europe and Japan. The global financial and economic crisis revealed that one-size-fits-all monetary policies could “nurture” structural divergence and lack of competitiveness, and provide no incentives for structural adjustments. Participants also identified key challenges arising from fiscal expansion, including exit policies, rising fiscal debts, and further fiscal policy coordination in the post-crisis era. Other Conferences: Aside from the GFC series of conferences, five conferences were completed under the priority theme regional cooperation and integration. The events addressed such topics as the structural links among the US, the PRC, and Japan; market access
and the severity of the noodle bowl effect on trade; the effects of exchange rate policy on Asia and in the PRC; and accelerating regional integration. ADBI’s 12th Annual Conference was held under the theme inclusive and sustainable growth and focused on the impact of social policy reforms on domestic demand. The issues discussed include the relationship between household savings and social protection policies and demographic trends as well as the potential of stateowned enterprises’ corporate surpluses for funding government social spending, particularly in the case of the PRC.
Workshops and Seminars
In 2009, ADBI’s Research department hosted two workshops. The first, Asia’s Agenda for G-20 Summit, was a brainstorming session that developed the proposals of Asian economies for the Group of Twenty (G20) Summit. The second, Asia’s Response to the Global Financial Crisis and Inception Meeting for the GFC Book was intended as a preliminary structured discussion for the GFC book on the implications of the global crisis on Asia and policy recommendations for achieving sustainable and inclusive growth.
ADBI Dean Kawai and other panelists discuss social protection at ADBI’s Annual Conference in Tokyo. 21
Year in Review 2009
The Research department conducted three seminars in 2009. The first seminar, Impacts of the Global Financial and Economic Crisis on Uzbekistan and other Central Asian Countries by Mahmud Hadjimetov, Counselor on Trade and Economic Affairs at the Embassy of the Republic of Uzbekistan in Japan, discussed Uzbekistan’s experience in dealing with the global financial and economic crisis. The second seminar, What is the Impact of the Global Financial Crisis on the Banking System in Asia?, by Michael Pomerleano, Advisor to the Bank of Israel and an Economist at the World Bank, assessed the impact of the global crisis on the Asian banking system using the standard framework of risk analysis based on capital and reserves adequacy, asset quality, management earnings, liquidity, and sensitivity to market risk (CAMELS). The third seminar, Financial Fragility and the Business Cycle: A Nonlinear VAR Analysis, by Fabio Fornari, Senior Economist at the European Central Bank, discussed the potential of vector autoregression (VAR)-augmented probit model
in identifying threats of recession over short- and medium-term horizons in a quick manner as the input data, i.e., financial variables, are available in real-time.
Brown Bag Lunch Seminars
The brown bag lunch (BBL) seminar series provides a platform for presenting researchers’ preliminary research ideas and findings in order to solicit comments from ADBI staff. In 2009, 14 BBLs were held (see Appendix 3 for the full list of BBL seminars).
Visiting Researcher Program
The ADBI Visiting Researcher Program is run competitively for researchers from ADB’s DMCs. In addition, ADBI engages a number of outstanding scholars from all ADB member countries as visiting fellows to participate in ADBI’s research activities. A visiting researcher or fellow works on a topic of interest that falls under one of ADBI’s three priority themes.
Visiting Researcher Program, 2009
Visiting Fellows Shin-ichi Fukuda Robert F. Owen Iwan Jaya Azis Cielito F. Habito Michael Pomerleano Peter A. Petri Visiting Scholars Anita Giselle Doraisami Hiroyuki Ito Kanda Naknoi Visiting Researchers Bhim Adhikari Jacob George Swapan Bhattacharya Prabir De Nepal India India India University of Michigan University of Delhi Indian Institute of Public Administration Research and Information System for Developing Countries (RIS) Australia Japan Thailand International Monetary Fund Portland State University Purdue University Japan United States/France Indonesia Philippines United States United States University of Tokyo University of Nantes Cornell University Ateneo de Manila University World Bank Brandeis University
Capacity Building and Training
n 2009, 30 courses and workshops were conducted under ADBI’s three priority themes (Appendix 4). A total of about 1600 participants attended these events. About 62% of the participants were government officials, half of whom held senior positions (director and above). Efforts were made to incorporate discussion of the impacts of the GFC on the Asia and Pacific region, country responses, and postcrisis development policies into CBT ’s program where applicable and appropriate.
management, financial and capital market development, trade facilitation, employment, environmentally sustainable growth, and Millennium Development Goals (MDGs). Some of these activities are briefly described here. More than 300 participants from 39 countries in the Asia and Pacific region and globally participated in the 6 th Microfinance Training of Trainers Course (MFTOT), offered from July to October. Among them, 244 participants successfully completed the course, 174 of whom were accredited as certified trainers; with the support of the African Development Bank, the course included participants from Africa as well. In addition to the availability of learning materials in Bahasa Indonesia, Chinese, Khmer (Cambodia), Lao, Mongolian, Thai, and Vietnamese, the 6th MFTOT
Inclusive and Sustainable Growth
Nineteen activities were conducted under the theme of inclusive and sustainable growth. These events addressed capacity building needs in the areas of PPPs in infrastructure, water resource
Capacity Building and Training
2009 CBT Participants Breakdown by Region
Others Southeast Asia
Central West Asia
benefited from ADBI’s workshop on promoting financial inclusion through innovative policies that was conducted earlier in the year. Emerging issues discussed at the workshop were incorporated into the MFTOT videoconference program, including the impact of the global financial crisis on microfinance industries and the expansion of microfinance through mobile banking.
The Workshop on Promoting Financial Inclusion through Innovative Policies discussed approaches to and exchanged country experiences on financial inclusion, focusing on six key areas: agent banking, mobile banking, diversifying providers, reforming public banks, financial identification, and consumer protection. Workshop participants found that providing financial services through non-bank agents helps to save costs and make the services more convenient to use and access. As mobile phone usage expands to low income and rural groups, a range of banking services, such as deposit taking, withdrawal, and payment transactions, can be offered through mobile services. At the same time, lowering regulatory barriers for start-up institutions promotes development of various financial products geared toward low-income clients. Many poor people, however, lack personal identity (such as a birth record) or financial identity (such as credit history), which constrains their access to formal financial services. Various options were discussed for developing identity, taking advantage of IT innovations, and statistical analysis.
Year in Review 2009
More than 100 participants debated the causes of the global financial crisis and the implications for capital market development in Asia at the ADBI-OECD Roundtable in March.
The OECD-ADBI 10 th Roundtable on Capital Market Reform in Asia brought together more than 100 policymakers and experts from Asia, the Americas, and Europe to discuss the causes of the GFC, and the impact on and implications for capital market development in Asia. The causes of the crisis were discussed at different levels: inadequate financial sector supervision contributed to a housing price bubble while financial innovation, deregulation, and relaxation of residential underwriting standards created the toxic products that were at the root of the crisis. The discussion participants agreed that hedge funds did not play a significant role, partly because their leverage was lower than often assumed. Instead, the main sources of instability were found in the highly regulated banking sector, where leverage was higher. Direct effects on Asia were small as emerging Asian banks had limited exposure to subprime losses though the region experienced greater volatility in financial markets, exchange rates and equity markets as declining consumer demand in the US and Europe led to significant drops in Asian exports.
At the Employment in the Postcrisis Context conference organized in collaboration with the International Labour Organization’s International Institute for Labour Studies, policymakers discussed the adverse impact of the GFC on the labor market— especially for young people, immigrants, and lowskilled and temporary workers, who are bearing most of the brunt of the job losses—as well as the policy implications for unemployment insurance, social protection, enterprise financing, and green growth. The conference called for exit strategies that minimize the crisis’ potential adverse impacts on existing jobs and reform of the social protection system that pays greater attention to improving vocational and entrepreneurial skills of low-skilled workers, SMEs, and microenterprises so they can take better advantage of growth rebalancing strategies in Asia. A regional workshop on Mainstreaming Climate Change Adaptation into Developmental Planning had senior officials from the Asia and Pacific region’s most vulnerable developing countries and small
Capacity Building and Training
island states exploring ways to better integrate adaptation measures into their development plans. The workshop identified the barriers to “effective mainstreaming” as insufficient scientific information, lack of communication between the science and policy communities, absence of a knowledge base on successful measures, and lack of funding. There is therefore a need to i) maintain or even increase budget support for scientific research and pilot projects, as well as joint meetings between scientific and policymaking communities, and ii) share climate data and best policy practices at the regional level. In addition, land use planning, water management planning, redesigning structural standards, and effective application of environmental impact assessments methods could be applied as an entry point to integrate climate change information into developmental planning. The workshop on Low Carbon Green Growth was held at the Asian Institute of Technology, where senior officials from large, Asian, carbon-emitting economies explored renewable energy and energy efficiency
opportunities, including technology transfer issues and financing options. The participants discussed energy efficiency approaches that integrate process level environmental systems and product labeling systems and encourage wider use of low carbon technologies. National innovation systems can promote indigenous technologies through enabling market conditions and intellectual property regimes. Clean Development Mechanisms help generate capital for low carbon investment by creating a global trading market for certified emission reductions. Putting an appropriate price on carbon through a carbon emission tax may also promote investment in green technologies. The workshop on Eco-Industrial Clusters: Policies and Challenges was held to discuss policy constraints and strategies to transform industrial clusters into ecofriendly economic zones. Eco-industrial clusters (EICs) are groups of interconnected companies that cooperate with each other and with the local community to efficiently share resources. By maximizing the use of resources through eco-efficiency approaches and the
Year in Review 2009
3Rs—reduce, recycle, reuse—policy, EICs offer greater opportunities for SMEs to achieve both environmental and economic competitiveness. With appropriate social, technological, and financial support, EICs can promote synergies among downstream and upstream businesses and foster sustainable development in the urban fringe areas. Public policy measures that support EICs include industrial policy that inspires innovation and technology development, environmental policy that focuses on resource conservation and emission reduction, and regional development policy that seeks to stimulate necessary infrastructure investment. As part of the Multilateral PPP for Infrastructure Capacity Building (MP3IC) initiative ADBI has been implementing in collaboration with the World Bank Institute and the Inter-American Development Bank Multilateral Investment Fund, five workshops and seminars were organized in Asia and the Pacific to
share global PPP practices and lessons learned among PPP policymakers and program managers in order to improve the design and implementation of PPP programs, enhance access to and lower the cost of infrastructure service delivery. A number of country and sector case studies were prepared as inputs into the MP3IC global learning products.
Regional Cooperation and Integration
Four CBT activities were held under the theme of regional cooperation and integration. They addressed development policies and issues related to and facilitated sharing of country experiences on ROOs, international tax treaties, WTO sanitary and phytosanitary (SPS) measures, and competition policy and law. Brief summaries of a selection of these events follow.
The Strengthening Governance for Infrastructure Service Delivery: The Role of Public Private Partnerships Symposium brought together more than 40 global and regional governance experts and senior-level managers from public sector training institutes in March. 28
Capacity Building and Training
A subregional workshop on Preferential Rules of Origin (ROO) for South Asian Association for Regional Cooperation (SAARC) members was organized, in collaboration with ADB, United Nations Conference on Trade and Development (UNCTAD), ASEAN Secretariat, and the Ministry of Finance of Japan. The workshop examined existing preferential ROO—such as the generalized system of preferences (GSP), ASEAN Free Trade Area, ASEAN-PRC, and ASEAN-Japan—that are directly relevant to their respective signatory members as well as the role of ROO in FTA implementation. ROO experts and participants explored ways to improve South Asian Free Trade Area (SAFTA) ROO to further facilitate crossborder trade within and outside the SAARC region, and identified a set of recommendations to be put to SAARC members for their consideration. ADBI, the Japan Fair Trade Commission, and the Authority for Fair Competition and Consumer Protection of Mongolia, jointly organized the 5th East Asia Conference on Competition Law and Policy and 5th Top-Level Officials Meeting on Competition Policy to promote sharing of country experiences in establishing and implementing competition policy and laws, and promoting competition advocacy in their respective economies. Approximately 140 experts and senior officials on competition policy attended the conference and meeting from eleven East Asian economies.
Governance for Policies and Institutions
Seven CBT activities were conducted to enhance the effectiveness of government policies and their implementation in the areas of PPP, competition policy, tax administration, journalism, and financial sector reform and regulation. Here are brief summaries of a selection of these events. The 3 rd ASEAN Experts Group on Competition training workshop on Costs and Benefits of Competition Policy, Law, and Regulatory Bodies was jointly organized by ADBI, the US Federal Trade Commission, and the ASEAN Secretariat. Thirtytwo senior officials from ASEAN competition and related authorities and agencies as well as the ASEAN Secretariat participated in the workshop, which focused on issues, tools, methodology, and country experiences on assessment of the costs and benefits of competition policy and law; design of effective competition law; efficiency of competition regulatory bodies; challenges for better regulatory management for small and developing economies; and generating evidence to guide merger enforcement. A regional workshop on the Challenges in the Implementation of Competition Law that was jointly organized by ADBI, ASEAN Secretariat, and the Department of Internal Trade of Thailand brought
Year in Review 2009
together more than 50 middle-senior officials from competition or related agencies in ASEAN countries, PRC, Mongolia, India, Pakistan, and Sri Lanka to exchange their views and experiences on advocacy, enforcement, drafting of competition law, and institutional capacity building with experts from the US, Japan, Australia, United Kingdom, and Germany. The workshop found that: i) raising public awareness facilitates information gathering; ii) combined financial and individual sanctions, backed by strong leniency policy, are effective in deterring future violation of competition law; and iii) engaging and retaining the right talent, leveraging on technology, streamlining procedures, and regular training are institutional requirements for effective competition enforcement. The Tax Administration Seminar VI was held in cooperation with Japan’s National Tax Agency and the Vietnamese General Department of Taxation. Twentyfour tax administrators as well as thirteen observers,
from eight Southeast Asian countries participated in the seminar. Participants discussed and explored ways to establish an effective e-filing and payment system, including financial and human resource requirements. Such a system would be expected to bring a set of benefits to both taxpayers and tax administrations, such as time-saving, cost effectiveness, accuracy, increase of productivity, and safety. The 2009 Developing Asia Journalism Awards (DAJA) and Training brought 22 journalist-finalists to Tokyo for a four-day training workshop and awards ceremony. Participants from across Asia were able to meet with experts on DAJA’s four themes for 2009: i) the poverty impact of the GFC, ii) government responses to the GFC, iii) infrastructure development, and iv) climate change adaptation. Top journalists from the Philippines and India won the titles of Development Journalist of the Year and Young Development Journalist of the Year, respectively.
Development journalists tackled the ﬁnancial crisis and climate change in the 2009 DAJA competition. 30
Capacity Building and Training
In 2009, post-event surveys were conducted with CBT events participants from 2008 in order to assess the impacts and application of knowledge gained from the events as well as to seek participants’ suggestions for future issues. The survey results showed that more than 80% of the participants rated the impact of CBT events on their personal career development as significant to very significant. About 70% of respondents indicated significant to very significant impact on their organizations. After the events, participants usually shared their course materials with others and spoke at internal seminars on issues related to the CBT activities that they had attended. Some of them also spoke at local seminars on issues related to the event or wrote an article or report about the event. Most participants applied the knowledge gained from CBT activities to improve the productivity of their day-to-day work, align national practices to best practices, and improve the effectiveness of their policy implementation. In terms of constraints in the application of knowledge, 40% of respondents indicated that the application requires facilities or equipment they do not have. A few others cited the lack of time due to other obligations/ duties and the sophistication of concept/technique. When asked about their post-event activities, about 85% of participants continued to network with each other after the events they attended, mainly to share country-specific information and foster closer cooperation. About 60% of participants kept in touch with some resource speakers to seek their advice, including updates and suggestion of other experts on relevant issues. Study participants suggested topics for future activities that range from water resources management, climate change, PPP in infrastructure, and ROOs to competition policy, regional cooperation, poverty reduction, and human rights.
DBI continued to enhance its outreach activities to reach target audiences of policymakers, academics, think tanks, and the private sector. The institution has improved the quality of its publications by stringently f o l l ow i n g i t s n e w l y s t r e n g t h e n e d publications guidelines. ADBI expanded its outreach program using the media in Japan and internationally. A series of nine interviews with ADBI’s dean were published in the Japanese language newspaper, Asahi Shimbun. The dean was also interviewed b y J a p a n’s N H K t e l e v i s i o n a n d Bloomberg on the subject of the GFC. In March, a press conference was held at the Foreign Correspondents’ Club of Japan to launch two reports: Recommendations of Policy Responses to the Global Financial Crisis for East Asian Leaders
and Recommendations for East Asian Leaders for G20 Meeting. Over 40 journalists attended the conference and the story was picked up by news wires and international newspapers. ADB’s four knowledge departments (ADBI, ERD, OREI, and RSDD) have closely coordinated their work programs to improve synergy in their knowledge creation efforts. ADBI staff join the meetings of ADB’s knowledge m a n a g e m e n t c o o rd i n a t o r s . A D B I l e d t h e p re p a r a t i o n , p u b l i c a t i o n , and dissemination effor ts of ADB headquarters’ and ADBI’s collaborative flagship study, Infrastructure for a Seamless Asia. The prepublication version of the book was launched at ADB’s annual meeting in May 2009, and disseminated at several external (non-ADBI) events and at workshops
in Cambodia, Canada, Japan, and the US. ADBI is collaborating with OREI on a project on the impact of free trade agreements on business in Asia, the output of which will be a book to be copublished with a commercial publisher. ADBI’s website is the key dissemination tool for ADBI’s knowledge products and underpins ADBI’s communication strategy. Website traffic continues to grow as the site is regularly updated with new research publications, event announcements, and CBT workshop papers and presentations. In 2009, successful web hits averaged over 2 million per month, an
increase of more than 20% over 2008. In addition to online publishing, the website is used as an advertising tool for ADBI employment and business opportunities, online registration for events, and article submissions for the 2009 DAJA program, for which over 250 journalists from DMCs registered for the 2009 event and submitted some 200 articles. Technical reports of web hits, number of downloads, and user statistics are disseminated to staff each month to encourage awareness of the website as a dissemination tool. Authors are informed when their papers and books are posted online and ADBI encourages them to share this information with their colleagues and networks.
Hits and Page Views, 2009
3,000,000 2,500,000 2,000,000 Hits 1,500,000 1,000,000 500,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 1,000,000
Number of Successful Hits
900,000 800,000 700,000 600,000 500,000 Page Views Unique Visitors
Page Views for Month
400,000 300,000 200,000 100,000 0
Visitors and User Sessions, 2009
200,000 60,000 50,000 150,000 Total User Sessions
Total User Sessions
0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Year in Review 2009
In 2009, e-newsline, ADBI’s daily e-newsletter of development news, reached more than 3,700 subscribers, a 10% increase over 2008. ADBI’s e-notification service, which sends out electronic updates on new ADBI materials and opportunities, had over 5,800 subscribers (an increase of 16%). Participating in external events is an effective way to promote ADBI’s work in the region and internationally. The dean, as the key spokesperson for ADBI, was an invited speaker at nearly 40 events, and ADBI staff were invited to speak at many other external events. Staff attendance at high-level events provides opportunities to build partnerships with well known academics and policymakers, thus giving ADBI greater visibility and more recognition.
ADB headquarters’ and ADBI’s flagship book, Infrastructure for a Seamless Asia, was formally launched at ADB’s annual meeting in May. Other books published were: ADBI Year in Review: 2008, Asia’s Contribution to Global Economic Development and Stability from the 2008 ADBI annual conference, and Infrastructure’s Role in Lowering Asia’s Trade Costs: Building for Trade, copublished with Edward Elgar, this is ADBI’s first commercially copublished book to be posted online as a read-only file, and was made available for free download after 12 months. Eleven ADBI working papers were published or accepted for publication in international journals. The average number of downloads from ADBI’s website per month was more than 72,000, showing that ADBI’s publications reach a large audience. An example of the value of the website as a dissemination tool for ADBI’s products is the number of times Infrastructure for a Seamless Asia book was downloaded—51,000 times from when it was first published on 15 September until 31 December.
In 2009, ADBI circulated 53 papers under its working paper series. Three research policy briefs and one research paper were also published and disseminated.
ADBI Dean Masahiro Kawai, Thailand’s Chalangphob Sussangkarn, and PRC’s Zhang Yunling address the press at the Foreign Correspondents’ Club of Japan to present the Asian Policy Forum’s recommendations ahead of the G20 meeting. 34
E-newsline and E-notification Subscribers, 2009
Total Number of E-newsline Subscribers
E-notification Subsciribers 5,500 3,500 E-newsline Subsciribers
Total Number of E-notification Subscribers
4,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Number of Downloads by Month, 2009
140,000 120,000 100,000 80,000 60,000 40,000 20,000 0
60,664 50,037 93,696 117,826 98,385 82,905
81,875 68,373 71,416 63,274 63,707
The CBT depar tment produced a CD-ROM, Mainstreaming Climate Change Adaptation into Developmental Planning, which is a compilation of papers and presentations from a workshop held in April 2009. The CD-ROM was produced primarily for disseminating to workshop participants; copies have been sent to more than 40 members of the public who requested a copy.
Conferences, Seminars, and Workshops
ADBI’s research outreach activities in 2009 included 61 conferences, seminars, and workshops, most of which were jointly organized with other institutions. Research activities in 2009 focused on the GFC with 22 events held on that topic. These events provided a platform for debate on emerging development issues in the region, and were aimed at soliciting comments on the preliminary drafts of ADBI’s research outputs as part of ADBI’s research quality-control mechanisms and dissemination.
Appendix 1: Organization Chart
Dean Masahiro Kawai
Advisory Council Masahiko Aoki K. M. Chandrasekhar Victor H. Frank, Jr. Gang Fan Eric Girardin Andrew MacIntyre Jong-Wha Lee
Capacity Building and Training
Administration, Management, and Coordination
Director Mario B. Lamberte
Lead Professional and Special Advisor to Dean Biswa Nath Bhattacharyay Senior Research Fellow Willem Thorbecke
Director Worapot Manupipatpong
Director Takashi Kihara
Senior Capacity Building Specialist Elaine Glennie
Principal Communications Specialist Ainslie Smith
Research Fellow Gloria Pasadilla
Senior Capacity Building Specialist David Kruger
Legal Advisor and Senior Administrative Officer
Research Fellow Doo Yong Yang
Senior Capacity Building Specialist Teruo Ujiie
Administrative Officer Toshimasa Mae
Senior Consultant for Research Peter Morgan
Capacity Building Specialist Anbumozhi Venkatachalam
Visiting Fellows and Researchers Shin-ichi Fukuda (Japan) Robert Owen (United States) George Jacob (India) Iwan Azis (Indonesia)
Senior Consultant for Capacity Building
Japan Water Agency Representative
(as of 31 December 2009)
Appendix 2: Deans and Advisory Council Members
Table A2.1: Deans, 1997 to Present
Masahiro Kawai Peter McCawley Masaru Yoshitomi Jesus P. Estanislao
January 2007 to Present January 2003–January 2007 January 1999–January 2003 December 1997–January 1999
Japan Australia Japan Philippines
Table A2.2: Advisory Council Members, 1998 to Present
Regional Borrowing Member Countries
2008–2010 K. M. Chandrasekhar (India) Gang Fan (PRC) 2006–2008 Li Yong (PRC) Ajit K. Jain (India) 2004–2006 Li Yong (PRC) Corattiyil Ramachandran (India) 2002–2004 N. C. Saxena (India) Zhang Xiaoqiang (PRC) 2000–2002 Y. Venugopal Reddy (India) Zhang Xiaoqiang (PRC) 1998–2000 Justin Yifu Lin (PRC) Chandi Chanmugam (Sri Lanka) * Victor H. Frank, Jr. passed away in April of 2010.
Regional Non-Borrowing Member Countries
Masahiko Aoki (Japan) Andrew MacIntyre (Australia) Masahiko Aoki (Japan) Andrew Maclntyre (Australia) Masahiko Aoki (Japan) Kanit Sangsupan (Thailand) Yujiro Hayami (Japan) Ronald Charles Duncan (Australia) Yujiro Hayami (Japan) Ronald Charles Duncan (Australia) Yonosuke Hara (Japan) Helen Hughes (Australia)
Non-Regional Non-Borrowing Member Countries
Victor H. Frank, Jr. (US)* Eric Girardin (France) Victor H. Frank, Jr. (US) Eric Girardin (France) William P. Fuller (US) Eric Girardin (France) William P. Fuller (US) Magnus Blomström (Sweden) William P. Fuller (US) Magnus Blomström (Sweden) Jeffrey R. Shafer (US) Fabrizio Onida (Italy)
Jong-Wha Lee Chief Economist
Ifzal Ali Chief Economist
Ifzal Ali Chief Economist
Ifzal Ali Chief Economist
Arvind Panagariya Chief Economist
Jungsoo Lee Chief Economist
Appendix 3: Brown Bag Lunches
Market-Based Approaches to Environmental Management: Lessons from Payment for Environmental Services in Asia Enriching Growth-Poverty Elasticity Analysis in Asia: What Guidance Might It Offer in Dealing With the Global Financial Crisis? Impact of Globalization on Employment and Poverty Reduction in India: The Case of Shopping Malls and Retailers The Global Financial Crisis Applying the Lessons of Asia: The IMF’s Crisis Management Strategy in 2008 Regional Infrastructure and Governance in Institutions: Evidence from Asia Foreign Direct Investment, Institution Quality, and Bilateral Investment Treaties An Empirical Analysis of ASEAN’s Labor-Intensive Exports Governance and Regional Integration in Asia from a Global Perspective: Some Preliminary Insights Regional Economic Integration among South Asian Economies: Measuring Impact of South Asian Free Trade Area Fiscal Policy Response to Global Financial Crisis in Selected Asian Developing Economies: Some Challenges and Policy Implications Brain Drain, Brain Gain and Brain Waste: Conceptual and Policy Issues Cross-border Investment Linkage among APEC Economies : The Case of Portfolio Investment and Bank Lending Regional Economic Integration among South Asian Economies: Measuring Impact of South Asian Free Trade Area
Title and Affiliation
Research Fellow, The University of Michigan
Director of Ateneo Center for Economic Research and Development, Ateneo de Manila University
Senior Fellow, National Council of Applied Economic Research Lead Financial Specialist, The World Bank Professor of Economics, Osaka University Fellow, Research and Institution System for Developing Countries Assistant Professor of Economics, Purdue University Senior Research Fellow, Asian Development Bank Institute Professor of Economics, University of Nantes
Michael Pomerleano Shinji Takagi
Associate Professor of International Trade, Indian Institute of Public Administration
International Monetary Fund
Professor of Economics, University of Nantes
Senior Analyst, APEC Policy Support Unit, APEC Secretariat
Associate Professor of International Trade, Indian Institute of Public Administration
Appendix 4: CBT Events
Number of Participants in Capacity Building and Training Activities, 2009
Date Course or Workshop Total Event Location Participants
Inclusive and Sustainable Growth
18–25 Feb 2–3 Mar 31 Mar–3 Apr 14–17 Apr 19–21 May 23–25 Jun 24-Jun 25-Jun 2–3 Jul 2–4 Jul 15–18 Sep 11-Oct 5th Integrated Water Resources Management Training OECD–ADBI 10th Roundtable on Capital Market Reforms in Asia Promoting Financial Inclusion through Innovative Policies Mainstreaming Climate Change Adaptation into Developmental Planning Knowledge Sharing on Infrastructure Public-Private Partnerships in Asia Public-Private Partnership for Infrastructure in China Exploring New Challenges in IWRM Water Security in the Asia–Pacific Region Strengthening Public–Private Partnership for Infrastructure Investment in Mongolia Water Governance Opportunities and Priorities for Low Carbon and Green Growth in Asia Advanced Geographical Information System and Satellite Information for the Benefit of Asia Financing and Managing Risks in PPPs at the National and Subnational Government Level Microfinance Training of Trainers Aligning Development Policies and Strategies to Achieve MDGs in South Asia 6th Integrated Water Resources Management Training Employment in the Postcrisis Context MP3IC Knowledge Sharing Symposium Eco-Industrial Clusters: Policies and Challenges 24 67 24 22 71 77 17 31 60 38 37 75 Hoi An, Viet Nam Tokyo Tokyo Tokyo Seoul Qingdao, PRC Singapore Singapore Ulaanbaatar Singapore Bangkok Manila
21–27 Oct Jul–Nov 4–6 Nov 11–18 Nov 15–17 Dec 16–17 Dec 8–11 Dec
31 326 46 20 25 146 42
Melbourne, Australia Tokyo Katmandu Viet Nam Tokyo Manila Tokyo
Regional Cooperation and Integration
23–26 Feb 29–30 Jun 8–11 Sep 3–6 Nov Preferential Rules of Origin for SAARC members East Asia Conference and Top Level Officials Meeting on Competition Law and Policy WTO SPS Measures Intensive Course on International Tax Treaties 23 99 28 25 Colombo Ulaanbaatar Bangkok Tokyo
Year in Review 2009
Course or Workshop
Total Event Location Participants
Governance for Policies and Institutions
9–11 Mar 18–19 May 23–25 Jun 21–23 Jul 24–26 Aug 20–23 Oct 11–12 Nov Strengthening Governance for Infrastructure Service Delivery: The Role of Public and Private Partnerships Costs and Benefits of Competition Policy, Law, and Regulatory Bodies Tax Administration Seminar VI: Taxpayer Services Focusing on E–filing and Payment Financial Sector Reforms and Regulations The Economics of Monopoly/Dominance Developing Asia Journalism Awards 2009 Challenges in the Implementation of Competition Law Total 37 30 37 27 38 22 37 1,582 Manila Kuala Lumpur Ha Noi Tokyo Da Lat, Viet Nam Tokyo Bangkok
Appendix 5: Selected ADBI Publications
Books ADB and ADBI. 2009. Infrastructure for a Seamless Asia. Tokyo: ADBI. ADBI. 2009. ADBI: Year in Review. Tokyo: ADBI. Brooks, D. H., and D. Hummels, eds. 2009. Infrastructure’s Role for Lowering Trade Costs: Building for Trade. Cheltenham, United Kingdom: Edward Elgar. Kawai, M., and S. Stone, eds. Asia’s Contribution to World Economic Growth and Stability. Tokyo: ADBI. Working Papers Anna Strutt, Susan Stone Transport Infrastructure and Trade Facilitation in the Greater Mekong Subregion Working Paper 130, January Juzhong Zhuang, Fan Zhai Agricultural Impact of Climate Change: A General Equilibrium Analysis with Special Reference to Southeast Asia Working Paper 131, February Ying-Yi Tsai Strategic Choice of Freight Mode and Investments in Transport Infrastructure within Production Networks Working Paper 132, March Renato E. Reside, Jr. Global Determinants of Stress and Risk in Public-Private Partnerships (PPP) in Infrastructure Working Paper 133, March Bhim Adhikari Market-Based Approaches to Environmental Management: A Review of Lessons from Payment for Environmental Services in Asia Working Paper 134, March Hyungpyo Moon Demographic Changes and Pension Reform in the Republic of Korea Working Paper 135, April Masahiro Kawai, Ganeshan Wignaraja The Asian “Noodle Bowl”: Is It Serious for Business? Working Paper 136, April Masahiro Kawai, Fan Zhai PRC-Latin America Economic Cooperation: Going beyond Resource and Manufacturing Complementarity Working Paper 137, April Biswa Bhattacharyay Infrastructure Development for ASEAN Economic Integration Working Paper 138, May Sununtar Setboonsarng, Jun Sakai, Lucia Vancura Food Safety and ICT Traceability Systems: Lessons from Japan for Developing Countries Working Paper 139, May
Year in Review 2009
Biswa Bhattacharyay, Prabir De Restoring the Asian Silk Route: Toward an Integrated Asia Working Paper 140, June Susan Stone, Ginalyn Komoto Determining Poverty Impacts on Lao People’s Democratic Republic and Cambodia: Reconciling Household and GTAP Data Working Paper 141, July Barry Bosworth, Aaron Flaaen America’s Financial Crisis: The End of an Era Working Paper 142, July Daisuke Hiratsuka, Hitoshi Sato, Ikumo Isono Impacts of Free Trade Agreements on Business Activity in Asia: The Case of Japan Working Paper 143, July Masahiro Kawai, Ganeshan Wignaraja Asian FTAs: Trends and Challenges Working Paper 144, August Cielito F. Habito Patterns of Inclusive Growth in Developing Asia: Insights from an Enhanced Growth-Poverty Elasticity Analysis Working Paper 145, August Michael Pomerleano What Is the Impact of the Global Financial Crisis on the Banking System in East Asia? Working Paper 146, August Dong Chul Cho The Republic of Korea’s Economy in the Swirl of Global Crisis Working Paper 147, August Shankaran Nambiar Malaysia and the Global Crisis: Impact, Response, Rebalancing Strategies Working Paper 148, August Ira S. Titiheruw, Raymond Atje Malaysia and the Global Crisis: Impact, Response, Rebalancing Strategies Working Paper 149, August Souvik Gupta, Jacques Miniane Recessions and Recoveries in Asia: What Can the Past Teach Us about the Present Recession? Working Paper 150, September Amir Akmar Basir Payment Systems in Malaysia: Recent Developments and Issues Working Paper 151, September Masahiro Kawai, Fan Zhai The People’s Republic of China-Japan-United States Integration Amid Global Rebalancing: A Computable General Equilibrium Analysis Working Paper 152, October
Appendix 5: Selected ADBI Publications
Masahiro Kawai, Shinji Takagi Why was Japan Hit So Hard by the Global Financial Crisis? Working Paper 153, October Somchai Jitsuchon, Chalongphob Sussangkarn Thailand’s Growth Rebalancing Working Paper 154, October Marie Mondeil, Sununtar Setboonsarng Enhancing Biodiversity Through Market-Based Strategy: Organic Agriculture Working Paper 155, October Inkyo Cheong, Jungran Cho The Impact of Free Trade Agreements (FTAs) on Business in the Republic of Korea Working Paper 156, October Masahiro Kawai, Peter Petri, Elif Sisli-Ciamarra Asia in Global Governance: A Case for Decentralized Institutions Working Paper 157, October Chad Bown, Rachel McCulloch US-Japan and US-PRC Trade Conflict: Export Growth, Reciprocity, and the International Trading System Working Paper 158, November Judith M. Dean, Mary E. Lovely, Jesse Mora Decomposing PRC-Japan-US Trade: Vertical Specialization, Ownership, and Organizational Form Working Paper 159, November Willem Thorbecke An Empirical Analysis of East Asian Computer Exports Working Paper 160, November Theresa M. Greaney, Yao Li Assessing Foreign Direct Investment Relationships Between Japan, the People’s Republic of China, and the United States Working Paper 161, November Ming Lu, Hong Gao When Globalization Meets Urbanization: Labor Market Reform, Income Inequality, and Economic Growth in the People’s Republic of China Working Paper 162, November Peter Morgan The Role and Effectiveness of Unconventional Monetary Policy Working Paper 163, November Rajiv Kumar and Pankaj Vashisht The Global Economic Crisis: Impact on India and Policy Responses Working Paper 164, November Lars Jonung Financial Crisis and Crisis Management in Sweden: Lessons for Today Working Paper 165, November
Year in Review 2009
Willem Thorbecke An Empirical Analysis of ASEAN’s Labor-Intensive Exports Working Paper 166, November Masahiro Kawai Reform of the International Financial Architecture: An Asian Perspective Working Paper 167, November Axel Börsch-Supan, Alexander Ludwig Old Europe Ages. Can It Still Prosper? Working Paper 168, November Shuji Uchikawa Small- and Medium- Enterprises in Japan: Surviving the Long-Term Recession Working Paper 169, November Saori N. Katada Political Economy of East Asian Regional Integration and Cooperation Working Paper 170, December Brian Rankin Staples, Jeremy Harris Origin and Beyond: Trade Facilitation Disaster or Trade Facilitation Opportunity? Working Paper 171, December Ram Upendra Das Imperatives of Regional Economic Integration in Asia in the Context of Developmental Asymmetries: Some Policy Suggestions Working Paper 172, December Jonathan A. Batten, Warren P. Hogan, Peter G. Szilagyi Foreign Bond Markets and Financial Market Development: International Perspectives Working Paper 173, December Yasuyuki Todo, Weiying Zhang, Li-An Zhou Knowledge Spillovers from FDI in the People’s Republic of China: The Role of Educated Labor in Multinational Enterprises Working Paper 174, December Alyson Ma, Ari Van Assche, Chang Hong Global Production Networks and the People’s Republic of China’s Processing Trade Working Paper 175, December Larry D. Wall Prudential Discipline for Financial Firms: Micro, Macro, and Market Structures Working Paper 176, December Prema-chandra Athukorala, Archanun Kohpaiboon Intra-Regional Trade in East Asia: The Decoupling Fallacy, Crisis, and Policy Challenges Working Paper 177, December Pier Carlo Padoan Fiscal Policy in the Crisis: Impact, Sustainability, and Long-Term Implications Working Paper 178, December
Appendix 5: Selected ADBI Publications
Barry Eichengreen Lessons of the Crisis for Emerging Markets Working Paper 179, December Xiangfeng Liu Impacts of the Global Financial Crisis on Small- and Medium-Enterprises in the People’s Republic of China Working Paper 180, December Soyoung Kim, Doo Yong Yang International Monetary Transmission and Exchange Rate Regimes: Floaters vs. Non-Floaters Working Paper 181, December Mark M. Spiegel Developing Asian Local Currency Bond Markets: Why and How? Working Paper 182, December Research Policy Briefs Peter Morgan Unregulated Entities, Products, and Markets: Challenges for Monitoring and Regulation Research Policy Brief 30, August Yung Chul Park The Global Economic Crisis and Rebalancing Growth in East Asia Research Policy Brief 31, December Shinji Takagi The Global Financial Crisis and Macroeconomic Policy Issues in Asia Research Policy Brief 32, December Research Papers Bruno Rocha At Different Speeds: Policy Complementarities and the Recovery from the Asian Crisis Research Paper 74, July CD-ROM ADBI. 2009. Mainstreaming Climate Change Adaptation into Developmental Planning. Tokyo. Book Chapters, Articles in Refereed Journals Anbumozhi, V., T. Gunjima, A. Prem Nath, and C. Viswanathan. 2009. An Assessment of Inter-Firm Networks in a Wood Industrial Cluster: Lessons for Integrated Policy Making. Journal of Clean Technology and Environmental Policy 11: 12–24. Bhattacharyay, B. 2009. Achieving an Integrated ASEAN Economic Community: The Role of Infrastructure Development. In ASEAN Economic Community Blueprint, edited by the ASEAN Studies Centre, Institute of Southeast Asian Studies. Report No. 4. Singapore.
Year in Review 2009
———. 2009. Infrastructure Connectivity for East Asia’s Economic Integration. In Economics of East Asian Economic Integration, edited by M. Fujita, I. Kuroiwa, and S. Kumagai. Cheltenham, United Kingdom: Edward Elgar. ———. 2009. Towards a Macroprudential Surveillance and Remedial Policy Formulation System for Monitoring Financial Crisis. CESIfo WP No. 2803. Munich, Germany: University of Munich. Bhattacharyay, B., D. Dlugosch, B. Kolb, K. Lahiri, I. Mukhametov, and G. Nerb. 2009. Early Warning System for Economic and Financial Risks in Kazakhstan. CESIfo WP No. 2832. Munich, Germany: University of Munich. Garcia-Herrero, A., P. Wooldridge, and D. Y. Yang. 2009. Why Don’t Asians Invest in Asia? The Determinants of Cross-Border Portfolio Holdings. Asian Economic Papers 8(3): 228–246. Karasulu, M. and D. Y. Yang, eds. 2009. Ten Years After the Korean Crisis: Crisis, Adjustment and Long-term Economic Growth. Seoul: KIEP, and Washington, DC: IMF. Kawai, M. 2009. An Asian Currency Unit for Regional Exchange-Rate Policy Coordination. In Fostering Monetary and Financial Cooperation in East Asia, edited by D. K. Chung and B. Eichengreen. Singapore: World Scientific. ———. 2009. Can Tokyo Become a Global Financial Centre? In Competition among Financial Centres in Asia-Pacific: Prospects, Benefits, Risk and Policy Challenges, edited by S. Young, D. Choi, J. Seade, and S. Shirai. Singapore: Institute of Southeast Asian Studies. ———. 2009. The Role of an Asian Currency Unit. In Towards Monetary and Financial Integration in East Asia, edited by K. Hamada, B. Reszat, and U. Volz. Cheltenham and Northampton: Edward Elgar. ———. 2009. Time to Step Forward: Asia’s Role in a New Global Financial Architecture. Global Asia (October): 62–67. ———. 2009. Why Asia Needs Its Own Monetary Fund. The Euromoney Asia-Pacific Capital Markets Handbook 2010 (October): 17–19. Kawai, M., and M. Pomerleano. 2009. Financial Stability Regulator. Financial Times Economists’ Forum. 28 August. Available: http://blogs.ft.com/economistsforum/2009/08/bolstering-financial-stability-regulation/. ———. 2009. International Financial Stability Architecture for the 21st Century. Financial Times Economists’ Forum. 1 August. Available: http://blogs.ft.com/economistsforum/2009/08/international-financial-stabilityarchitecture-for-the-21st-century. Kawai, M., and P. B. Rana. 2009. The Asian Financial Crisis Revisited: Lessons, Reponses and New Challenges. In Lessons from the Asian Financial Crisis, edited by R. Carney. Abingdon and New York: Routledge. Kawai, M., and G. Wignaraja. 2009. Global and Regional Economic Integration: A View from Asia. Integration and Trade 29(13) (January–June): 35–46. ———. 2009. Multilateralizing Regional Trade Arrangements in Asia. In Multilateralizing Regionalism, edited by R. Baldwin and P. Low. New York: Cambridge University Press. ———. 2009. Tangled up in Trade? The “Noodle Bowl” of Free Trade Agreements in East Asia. 15 September. Available: http://www.voxeu.org/index.php?q=node/3979. Kawai, M., and F. Zhai. 2009. China-Japan-United States Integration amid Global Rebalancing: A Computable General Equilibrium Analysis. Journal of Asian Economics 20:(6) (November): 688–699. Kim, S., and D. Y. Yang. 2009. The Impact of Capital Inflows on Emerging Asian Economies: Is Too Much Money Chasing Too Little Good? Open Economies Review. Available: http://www.springerlink.com/content/n43248510r5 24p72/?p=6b036b7335e14fb49c24b20b0c7084c8&pi=8.
Appendix 5: Selected ADBI Publications
———. 2009. Do Capital Flows Matter to Asset Prices? Asian Economic Journal 23(3): 323–348. Kwark, N. S., C. Rhee, and D. Y. Yang. 2009. Crisis, Adjustment, and Long-run Economic Growth in Korea. In Ten Years after the Korean Crisis: Crisis, Adjustment and Long-Term Economic Growth, edited by M. Karasulu and D. Y. Yang. Seoul: KIEP, and Washington, DC: IMF. Lamberte, M. B., and M. C. Manlagñit. 2009. The Impact of Women Membership and Employees on the Severity of Agency Conflicts in Philippine Cooperative Credit Unions. Canadian Journal of Development Studies 29 (1–2): 183–214. Liu, X., and V. Anbumozhi. 2009. Determinant Factors of Corporate Environmental Information Disclosure: An Empirical Study of Chinese Listed Companies. Journal of Cleaner Production 17: 593–600. Pasadilla, G., ed. 2009. How to Access Trade Finance: A Guide for Exporting SMEs. Geneva, Switzerland: International Trade Centre. Thorbecke, W. 2009. Trade Interdependence and Exchange Rate Coordination in Asia. In Monetary, Exchange Rate and Financial Issues and Policies in Asia, edited by R. S. Rajan, S. M. Thangavelu, and R. A. Parinduri. Singapore: World Scientific Press. ———. 2009. Reducing Global Imbalances: Perspectives from the United States and from Asia. Fiducie 17(1): 20–23. Thorbecke, W., and H. Zhang. 2009. The Effect of Exchange Rate Changes on China’s Labor-Intensive Manufacturing Exports. Pacific Economic Review 14: 398–410. ———. 2009. Monetary Policy Surprises and Long-Term Interest Rates: Choosing between the Inflation-Revelation and Excess Sensitivity Hypotheses. Southern Economic Journal 75: 1114–1122. Van Ha, N.T., C. Visvanathan, and V. Anbumozhi. 2009. Techno Policy Aspects and Socio-Economic Impacts of Eco-Industrial Networking in the Fishery Sector: Experiences from An Giang Province, Vietnam. Journal of Cleaner Production 17: 1272–1280. Yang, D. Y., D. Park, and Y. M. Ju. 2009. Population Aging and International Capital Flows. KukJe Kyungje Yunku 15(1): 25–53. Zhai, F., T. Lin, and E. Byambadorj. 2009. A General Equilibrium Analysis of the Impact of Climate Change on Agriculture in the People’s Republic of China. Asian Development Review 26(1): 206–225.
Appendix 6: Top 30 Downloads of 2009
ADBI Top Downloads 2009
1 2 3 4 5 6 7 8 9 10 11 12 Infrastructure for Seamless Asia How to Draft a Project Proposal Asian FTAs: Trends and Challenges Infrastructure’s Role In Lowering Asia’s Trade Costs: Building for Trade Prepare Project Proposals Credit Rating Agencies NGO Law and Governance Corporate Governance in Asia ADBI Three-Year Rolling Work Program 2009–2011 and Budget for 2009 Post-Crisis Development Paradigm Transport Infrastructure and Trade Facilitation in the Greater Mekong Subregion Using Macroeconomic Computable General Equilibrium Models for Assessing Poverty Impact of Structural Adjustment Politics Enhancing Corporate Social Responsibility in Asia Results-Based Management Workbook Successful Wastewater Management in Singapore The Global Economic Crisis: Impact on India and Policy Responses Global Determinants of Stress and Risk in Public-Private Partnerships (PPP) in Infrastructure Restoring the Asian Silk Route: Toward an Integrated Asia Patterns of Inclusive Growth in Developing Asia: Insights from an Enhanced Growth-Poverty Elasticity Analysis Impacts of Free Trade Agreements on Business Activity in Asia: The Case of Japan The Republic of Korea’s Economy in the Swirl of Global Crisis Managing Capital Flows: Viet Nam Corporate Governance in Asia: Recent Evidence from Indonesia, Republic of Korea, Malaysia, and Thailand Public-Private Partnerships in the Social Sector: Issues and Country Experiences in Asia and the Pacific The Political Ecology of Famine: The North Korean Catastrophe and Its Lessons Risk Management Accounting 100 Tips 100 Tools for NGO ASEAN Logistics Network Map Asian Trade and Global Linkages At Different Speeds: Policy Complementarities and the Recovery from the Asian Crisis
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