An integrated Asia is within sight: ADB chief

Aditya Suharmoko ,  The Jakarta Post ,  Jakarta   |  Thu, 09/11/2008 10:58 AM  |  Headlines

The Asian Development Bank (ADB) says an economically integrated Asia is possible by the year 2020, despite considerable challenges, as the region slowly emerges as a key contributor to the global economy.

"Asia stands as a major player in the global economy, and an important partner in global trade, investment and development," ADB president Haruhiko Kuroda said Wednesday at a seminar.

"The center of gravity of the global economy is shifting toward Asia; Asia's remarkable rise is reshaping the world economy, and especially relations among the region's economies."

Kuroda said that with the integration, Asian countries would accelerate trading and investment with each other -- a trend that has already been realized over the past few years.

ASEAN Secretary-General Surin Pitsuwan said trade and investment would be more attractive if Asian regionalism were established.

"Asian integration has generally been market-led and private-sector driven... This market-led process would benefit from a helping hand from the governments," Kuroda said.

Asian regionalism will impact the lives of the continent's 3.7 billion inhabitants, and "the world as a whole", the ADB says.

Kuroda said ASEAN could be the regional hub for closer economic cooperation within East Asia and beyond.

He said ASEAN+3 -- including Japan, China and Korea -- and the East Asia Summit -- adding India, Australia and New Zealand -- were two powerful forums centered around ASEAN.

In 2007, ASEAN member states had a combined population of 576 million and GDP of US$1.3 trillion.

Kuroda said Indonesia, southeast Asia's largest economy, would play a major role in ASEAN integration.

Wednesday's seminar was a prelude to the 42nd annual meeting of the ADB's board of governors, which will be held from May 2-5, 2009, in Bali.

Trade Minister Mari Elka Pangestu, representing Finance Minister Sri Mulyani Indrawati, said Asian regionalism would need a greater level of regional cooperation in the economy and finance sectors.

"Asian countries have very different levels of human resources, language and economy," Mari said, adding these could prove to be barriers against integration.

Mahendra Siregar, deputy minister for international economic cooperation at the Coordinating Ministry for the Economy, said the 2015 ASEAN economic community was Indonesia's priority.

To achieve that, Mahendra went on, the government was trying to improve the country's infrastructure and investment climate as part of its reforms.

Goals to be achieved by 2020 in Asian regionalism
1. An integrated market free of restrictions on regional flows of goods, services and capital.
2. Deep and liquid financial markets open to cross-border financial flows and services, with high standards of oversight and strong protection for national and foreign investors.
3. Effective frameworks to coordinate macroeconomic and exchange rate policies, taking into account global challenges and differing national circumstances.
4. Collective efforts to address vital social issues, such as poverty, exclusion, income insecurity, migration, aging, health and environmental threats.
5. A consistent and determined voice to effectively articulate the concerns of Asian economies in global policy forums and enhance responsible global governance.
6. Vibrant institutions, adequately and professionally staffed, to provide first-rate analytical and logistical support for these efforts.

Source: Asian Development Bank

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