Asia Regional Integration Center

While economic cooperation and trade liberalization in South Asia has deepened, intraregional trade remains modest and the private sector continues to face numerous constraints. This ADB-FICCI joint report articulates five key challenges facing business and their solutions for enhancing private-sector led integration in the region. The report follows the November 2009 Conference on "Harnessing Business Opportunities for South Asian Economic Integration" in New Delhi organized by ADB, FICCI, India's Ministry of External Affairs, and SAARC. Download the report.

Claudio Loser, Miguel Kiguel and David Mermelstein develop a methodological framework to help bank supervisors anticipate eventual problems and take mitigating actions at an early stage. They develop a proposal applicable to banking systems as a whole in order to support systemic monitoring and propose a particular methodology for the early detection of problems facing individual entities in order to facilitate preventive actions and avoid eventual contagion risks. Read more.  

The Clean Air Initiative for Asian Cities (CAI-Asia) launches Clean Air Portal — a website containing data and information on air quality, climate change co-benefits, energy, and transport. Through the portal, policymakers, practitioners, and the public can join online discussion and get updates on projects and events of the CAI-Asia and related organizations. The CAI-Asia comprises country networks including China, India, Indonesia, Nepal, Pakistan, Philippines, Sri Lanka and Viet Nam, the CAI-Asia Center and over 170 organizational members. Visit the portal. Know more about CAI-Asia.

The spread of regional and bilateral free trade agreements (FTAs) in the Asia and Pacific region continues to gain momentum. From 54 FTAs in 2000, the Asian Development Bank (ADB) has identified 221 bilateral and plurilateral FTAs as of January 2010. Of these, 88 are in effect, 24 are signed, 60 are under negotiation, and 49 are in the proposal stage. ADB’s FTA database classifies FTAs by geographic area, scope, and status of notification to the World Trade Organization (WTO). East Asian and Southeast Asian countries continue to lead the region in FTA formation. Follow FTA Trends at the ARIC website. Click here for more resources on FTAs.

Siow Yue Chia discusses a case for a new regional trade architecture to rebalance growth in East Asia in the post-crisis era. This includes improved competitiveness and economic dynamism from a large integrated market; increased intra-regional flows of trade, investment, and human resources; expansion and deepening of production networks; a rebalancing of growth towards regional demand; and a stronger and cohesive voice in international fora and organizations. Read more.

Using a game theory approach, Shintaro Hamanaka develops a hypothesis of a "regionalism cycle" to explain the dynamic nature of Asian regionalism based on actual cases of regional institutions. He contends that the institutional outcome of regionalism in Asia has been cyclical because of the absence of a stable equilibrium in the game played by Japan and the United States. Download the paper.

Thailand, one of East Asia's most active users of free trade agreements (FTAs), had 11 concluded FTAs by December 2009. Although Thai trade negotiators have striven to secure market access via FTAs, little is known on how FTAs affect exporting firms. Using a survey of 221 Thai exporters, this study by G. Wignaraja, R. Olfindo, W. Pupphavesa, J. Panpiemras and S. Ongkittikul examines the business impact of FTA’s in Thailand. Specific recommendations on how  to take better advantage of regional trade agreements are discussed. Download the paper.

Lotte Schou-Zibell and Srinivasa Madhur examine the determinants of a business friendly environment that underpin rapid and sustained economic growth. The authors suggest that regular monitoring of relevant indicators and comparative benchmarking can provide incentive structures that serve as a starting point for dialogue between government and the private sector on improving the business environment. Read more.