Download - Asian+Regionalism Final 0344am
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EMERGING ASIANREGIONALISM
Farizatul AQMA
Sena SUH
Youngsik KIMSumi KWON
Yeoul KANG
Youngbm CHO
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Contents
I. Definition of Regionalism
II. Executive Summary
III. Why Asian Regionalism?
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NRegionalism
Cooperation Integration
EconomicPolitical
Regional
+
&
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Drivers1
.
2.
Challenges
3
.Options
Interconnectivity Endowment Low trade barriers Transport and communication links
Production network integration Open global system of trade &
investment
Consolidating FTAs Cross border infrastructure
N
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Drivers1
.
2
.Challenges
Improvements in financial markets
Monitor financial markets
Harmonization of financialregulations Minimum standards ABMI & ABF Regional infrastructure
Efficient financial systems
MARKET
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Drivers1
.
2
.Challenges
3
.Options
Improvements in financial markets
Monitor financial markets
Harmonization of financialregulations Minimum standards ABMI & ABF Regional infrastructure
Efficient financial systems
Expand ABMI & ABF
New institution
MARKET
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Drivers1
.
2
.Challenges
3.
Options
Stable microeconomics
Global payments imbalances
- Exchange rate adjustments- Chiang Mai Initiatives
Monitor global and regional
developments
Asian Secretariat for EconomicCooperation
Economic Review & Policy Dialogue
C
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Offer capabilities in addressing issues Framework for regional cooperation Match challenges and diversity Creates healthy competition
Remain flexible Physical connectivity
Unification of regulations and currencyWorkers mobility
Long term and pragmatic initiatives
COOPERATION
Single Market
ASEAN+3 & East AsianSummit
ASEAN
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Why Asian regionalism?
16 economies including ASEAN, China, Hong Kong, India,
Japan, Korea and Taipei 87% of the regions population
96% of its output
More than half of its trade
Rapid growth of Asia
Economy, Population,Output,
Economic growth rates
Demand for sustainableeconomic growth,
Play a larger role in globaleconomic leadership
Regionaleconomic
cooperation
Integrating Asia
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Integrating Asia: basic indicator 2007
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Connected through market
Focused on finding new and flexible forms of cooperation
Complement global relationships
Build bridge that connect Asian economies and the world
Integrating Asia / Asian regionalism
DynamicOpen Pragmatic
DiverseOutward-looking Vibrant
Main characteristics
Asian economies
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Not just to Asia, but to the world
Sustainable growth of the region
Stability Equality
Immense intellectual and economic resources
Power and stabilize the global economy by boosting
productivity, raising living standards and reducing poverty
Everyones interest (cohesive, stable and productive Asia)
Benefit of Asian regionalism
Integrating Asia / Asian regionalism
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How regionalism can benefit Asia
Cooperation requires trust, innovation, compromise and time
Benefits extend to developing Asian economies that are notyet part of the regions integrating core
Link competitive strengths of its diverse economies Connect the regions capital markets Cooperate in setting exchange rate and macroeconomic policies Pool the regions foreign exchange reserves Exercise leadership in global decision making Build connected infrastructure Create regional mechanisms
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Incentives and the leverage to play a bigger role Generate productivity gains, new ideas and competition Contribute to the stability of global financial markets Diversify sources of global demand Provide leadership to help sustain open global trade and financial
systems Create regional mechanism to manage health, safety and
environmental issues
Help to sustain global economic progress
How regionalism can benefit the world
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History of the economics of regionalism
Regionalism must NOT lead to protectionist blocs No more fortress Asia
The economics of regionalism
Preferential trade blocs,Discriminatory currencyblocs in 1930s
Collapse ofinternational trade and
financial flows
GATT
post-war globaleconomic system
(nondiscrimination)
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Important priorities for regional collective action
Provide public goods Manage the spillover effects of economic activity
Coordinate regional policy approaches to projects Liberalize trade and investment Add value to national policy making
Regional cooperation is not a goal to be pursued for itsRegional cooperation is not a goal to be pursued for itsown sake; it is a means for achieving more fundamentalown sake; it is a means for achieving more fundamentalobjectivesobjectives
The economics of regionalism
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The challenge of cooperation
Trade and Investment
Financial integration
Macroeconomic policy
Social and environmental policy
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The challenge of cooperation-Asias
complexity
The loss of cooperation National sovereignty &narrow policy option
Ex) Unable to issue own currency Cooperation is likely to evolve gradually Using frameworks and forum
Characteristics of Asian Regionalism
Pragmatic & cautious The public appears to have positive expectations
to regionalism
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Perceptions of economic
interdepence in Asia
Source: Gartner
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Comparison with EU
Advantages of European Union
-Similar economic status
-Christianity-Roman Alphabet
-Open minded
-Closer cooperation in policy making-Euro currency
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The challenge of cooperation -Risk
Global demand & financial stability Falling dollar, rising energy, food and other
commodity
Environmental Damage Social instability
The unexpected factor
Asian Financial crisis Regional cooperation is a form of insurance