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Executive Column: Asian economic interdependence will lead into integration
The Jakarta Post , Jakarta | Mon, 09/29/2008 10:51 AM | Business
Asian economies have been increasingly vital to each other and to the world. Their output today roughly equals that of Europe and North America and could even be 50 percent larger than theirs in terms of purchasing power parity by 2020.
This is one of the main conclusions of a comprehensive study by the Manila-based Asian Development Bank on emerging regionalism in Asia which was presented at an international conference in Jakarta last Wednesday.
ADB President Haruhiko Kuroda, who was recently here, elaborated on his vision of a more integrated Asia in an interview with The Jakarta Post after making his presentation at the conference. The following are excerpts from that interview.
Question: What will be the role of ADB in helping accelerate Asian economic integration?
Answer: ADB has set up a funding facility to provide grants for projects which support regional economic integration such as those in cross-border infrastructure, i.e., transport, communications and energy systems.
We have some experience in financing regional projects such as the greater Mekong sub-region development project which involved six countries (Vietnam, Cambodia, Laos, Thailand, Myanmar and China).
Our 2020 strategy also identifies regional integration as one of the key priority areas for our lending and non-lending operations. Under this strategy, ADB will serve as a catalyst and coordinator of regional cooperation and integration for Asian countries.
We expect that by 2020 about 30 percent of our total lending will go to regional projects.
We believe Asian integration is quite challenging, yet achievable as Asian nations enjoy good relations with each other and with the world. Asian economies will continue to trade with each other and invest in each other, further quickening interdependence through production networks, trade, finance and investment.
All of this will lead to the emergence of a strong, outward-looking Asian economic community, regionally integrated, yet globally connected.
What is the position of ASEAN in the development of Asian economic integration?
Certainly ASEAN with its long experience is well placed to serve as the regional hub for closer economic cooperation within East Asia and beyond.
With more than 575 million people and a gross domestic product of US$1.3 trillion, the 10 member countries of ASEAN (Indonesia, Malaysia, Thailand, the Philippines, Singapore, Brunei, Cambodia, Laos, Myanmar and Vietnam) will play a greater role in enhancing Asia's greater integration.
The annual ASEAN+3 forum (Japan, South Korea and China) and the East Asia Summit (grouping ASEAN countries, Japan, South Korea, China, India, Australia and New Zealand) are very important forums for policy dialogs and coordination to further develop Asian integration.
Intensifying regional cooperation in East Asia might gradually include South Asia and other subregions of Asia, ultimately resulting in the formation of an Asian economic community.
We will continue to work closely with the regional forums such as ASEAN, ASEAN+3, East Asia Summit and the Asia Pacific Economic Cooperation (APEC).
What is Indonesia's role in the entire process of Asian economic integration?
Obviously, as the largest country and economy in ASEAN and a founding member of this group, Indonesia will play a major role in the Asian regional integration because ASEAN itself will also play a key role in the process.
Each step towards regional integration will require innovation, leadership and support from major economies in Asia -- here lies Indonesia's important role.
