Asia Regional Integration Center

Within the next few decades, Asia is poised to become the oldest region in the world. A rapidly aging population can have adverse effects on economic performance and prospects through a decrease in the labor force, lower saving and investment rates, and spiraling pension and health care costs. In this paper, Jayant Menon and Anna Melendez-Nakamura examine the impact of aging on the region and discuss policy options to deal with its challenges. To prevent an “aging crisis” in Asia, policymakers need to start refashioning their institutions and policies to influence behavior, and they need to do so quickly.

In this paper, Jong-Wha Lee and Ju Hyun Pyun examine the effect of trade integration on military conflict. Based on a large panel data set from 1950 to 2000, they find an increase in bilateral trade interdependence and global trade openness significantly promotes peace. They also find the impact of trade integration on military conflict varies depending on the geographical proximity: bilateral trade interdependence promotes peace more significantly for contiguous countries, while global trade openness contributes more to peace between distant countries. Read more.

This joint ADB and ADBI flagship study addresses major challenges in developing regional infrastructure—both hard and soft—in Asia, specifically exploring the costs and benefits, financing requirements, and infrastructure priorities in the region. It evaluates existing regional infrastructure programs, policies, and institutions, and makes recommendations to meet these challenges. 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—to foster lasting prosperity for all its citizens—through the building of pan-Asian infrastructure connectivity. Read more.

Stephen Wells and Lotte Schou-Zibell examine India's bond market focusing on its salient characteristics, reforms, and development obstacles. They compare its market to emerging East Asian neighbors, discuss the importance to development of learning from the innovations and experiences of others as well as policies that can help further develop the Indian bond market and meet the needs of its firms and investors. Read more.

In this paper Hsiao Chink Tang argues that recent inflationary pressures were not caused by temporary supply problems alone: monetary policy has a key role to play even when the causes are multifaceted. The reluctance and/or tardiness of emerging East Asian central banks to raise interest rates amid rising inflation and inflation expectations were clearly a cause of concern that eroded the little credibility the central banks have. Without much credibility, inflation expectations cannot be well-anchored. Great efforts must therefore be made to ensure credibility is developed and enhanced. Read more.

With the global economy facing a major downturn, developing Asia's immediate growth prospect has been hurt. For emerging East Asia, 2009 will also be a difficult year but it will be manageable if countries respond decisively and collectively, says the latest issue of Asia Economic Monitor. This major report includes growth forecasts and emerging policy issues for emerging East Asia. Read the news release. Watch OREI Head Jong-Wha Lee's discussion on AEM. Download the report.      

Patrick Low of the World Trade Organization will review trade developments in light of the financial crisis and discuss developments in the Doha Round, prospects for early completion, and the implications of the Doha outcome for world trade. Confirm participation with Ms. Liza Cruz at mlscruz@adb.org, please state the organization you represent. Seats are limited.

Emerging East Asia's local currency bond markets have shown resilience to the global credit turmoil, according to the latest Asia Bond Monitor. This twice yearly report examines local currency bond market developments in the ASEAN member countries, plus PRC; Hong Kong, China; and Republic of Korea. Read the news release and full report.