Japan-IMF Conference Discusses Regional Economic Integration in Asia
In his opening remarks, IMF Deputy Managing Director Mitsuhiro Furusawa emphasized Asia’s progress in economic integration. “In addition to trade, Asia has made important strides in the area of financial integration as well,” he said. “Motivated by the Asian financial crisis of 1997-98, significant steps have been taken, such as regional liquidity support arrangements through the Chiang Mai Initiative Multilateralization, the Asian Bond Fund, and the Asian Bond Market Initiative.”
IMF Deputy Managing Director Mitsuhiro Furusawa.
The Advances and Challenges in Regional Integration conference hosted on March 3–4 by the Regional Office for Asia and the Pacific (OAP) of the IMF, and Hitotsubashi University brought together senior policy makers, officials from the IMF and the Asian Development Bank (ADB), academics, and private sector representatives.
The event, addressed by Japan’s Vice Minister of Finance Masatsugu Asakawa, was financed by the Japanese government as part of Japan’s efforts to foster policy dialogue and capacity building in the region. It discussed Asia’s experience with economic integration, including in the areas of trade, financial markets, and labor mobility
The benefits of further integration
Professor Anne O. Krueger of Johns Hopkins University stressed in her keynote speech the synergies between pursuing regional and global trade integration. “In order to fully reap the benefits of regional trade agreements (RTAs) and make sure they do not result in regional protectionism, it is crucial to pursue RTAs in the context of multilateral trade liberalization,” she said. “As the fastest growing region in the world, Asia has a special responsibility in providing leadership and pushing the international community for a revival of WTO agreements.”
The discussion highlighted that behind-the-border barriers to trade remain, and should be dealt with, for example by reducing transportation costs. At the same time, countries need to strengthen trade integration—including by mutual recognition of trade standards and the removal of remaining trade barriers—as a prerequisite for further financial integration.
Participants also noted that, given complementarities amongst factors of production, labor mobility is important to fully reap the benefits of trade and financial integration. They broadly agreed that...
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