A s i a n D e v e l o p m e n t B a n k I n s t i t u t e

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ADBI News 2009 Volume 3 Number 3

Infrastructure Connectivity for BOOK DISSEMINATION

Asias Seamless Integration

ADBI Dean Kawai and Hiroshi Watanabe discuss with Asian policymakers the vision of a seamless Asia with regards to regional
infrastructure.

In light of the current global financial and facilitate the hard infrastructure, promotion of a top-
economic crisis, it has become increasingly evident down in addition to a bottom-up approach, and its
that this is the time for Asia to expand its role as a acknowledgement of the need for private sector
center for global growth by harnessing its vast participation in these large-scale projects.
potential through a seamlessly integrated, pan- Achieving a seamless infrastructure network in
Asian infrastructure network. The newly released Asia will remain a pressing and important topic
publication, Infrastructure for a Seamless Asia, for the region and discussions will continue
the joint flagship study by ADB and ADBI, reports through a series of dissemination seminars held by
that to realize pan-Asian connectivity in energy, ADB and ADBI in major cities across the Asia and
transport, and tele-communications, a total of Pacific region in the months to come.
US$8.3 trillion will need to be invested in See more details about the dissemination seminar at
infrastructure over the next decade (20102020), www.adbi.org/event/3325.dissemination.seminar.book.
infrastructure.seamless.asia/.
amounting to US$750 billion per year.
The first dissemination seminar for this
publication was held on 29 September and was In this issue
attended by more than 100 delegates, including
distinguished experts as speakers and panel
discussants. Delegates and speakers took up an
engaged discussion on the key messages of the book
and regional infrastructure for Asias economic
integration. Those in attendance agreed upon the
timeliness and relevance of the study given the
current global and regional state of affairs and the
books focus on the soft infrastructure required to

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 A s i a n D e v e l o p m e n t B a n k I n s t i t u t e

Market-Led Integration in East Asia DISTINGUISHED SPEAKER

Eisuke Sakakibara, professor at Waseda Intra-regional trade is expected

University and former vice minister of finance at to increase, which necessitates
Japans Ministry of Finance, delivered a lecture on regional cooperation. But the
Market-driven Integration in East Asia on 24 lack of regional consultations
June at ADBI. and communication could
Unlike the institution-driven integration of stymie regional efforts. He
the European Union in which the public sector particularly recommended some
had an active role, markets have been pivotal in rapprochement between the The continued
making Asian regional integration what it is today. Peoples Republic of China and promotion of
It may have been the fortuitous effect of the 1985 Japan. regional trade may
one day create a
Plaza Accord that doubled the Japanese yens common market in
value vis--vis the US dollar, prompting Japanese See a more detailed summary of this
Asia in 3040
event at www.adbi.org/event/3032.
firms to expand operations abroad. Mr. Sakakibara years.
sakakibara.distinguished.speaker.
believes that regional integration is irreversible. market.integration.east.asia/.

US Trade Policy Toward Asia DISTINGUISHED SPEAKER

Vinod K. Aggarwal is a 2008 has had four phases: multiproduct

professor in the department of
political science, affiliated
professor in the business and
public policy group, and director
of the Berkeley Asia Pacific
Economic Cooperation Study
The Trans-Pacific
Economic
Center at the University of
Partnership California at Berkeley. Mr.
between New Aggarwal gave a lecture on Look
Zealand, Chile,
West: The Evolution of United
Singapore, and
Brunei Darussalam States Trade Policy Toward
may provide an Asia on 10 August at ADBI.
avenue to develop For Mr. Aggarwal, the
a free trade area in
the Asia and Pacific evolution of US trade policy
region. from post-World War II until
multilateralism, liberal protectionism, regionalism,
and competitive liberalism. Throughout these
phases, he saw the significance of domestic
coalitions shaping trade policy and believed that
buying off losers may reduce future support for
global negotiations. These strategies have also
contributed to the proliferation of free trade
agreements in Asia. He suggested reconciling these
free trade agreements through the creation of a
central clearing house and urged collective action to
counter such preferential trade approaches and to
continue the current liberal trade regime.
See a more detailed summary of this event at
www.adbi.org/event/3257.aggarwal.distinguished.speaker.
evolution.us.trade.policy.asia/.

Post-Crisis Issues and Choices DISTINGUISHED SPEAKER

Confronting Northeast Asian Countries

Duck-Koo Chung, chairman of the North East To maintain The presence of a

dominant power
Asia Research Foundation; former minister of the prosperity and
that can threaten
commerce, industry, and energy for the Republic of stability of the common interests
Korea; and professor at the Graduate School of region, Mr. Chung could hasten the
International Studies at Seoul National University, believes that Japan process of
overcoming
delivered a lecture on Post-Crisis Issues and East and the Republic individual country
Asia on 8 September at ADBI. of Korea must differences.

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 A s i a n D e v e l o p m e n t B a n k I n s t i t u t e

address their rising population dependency ratios,
inefficient service sectors, and depressed domestic
consumption. Meanwhile, the Peoples Republic of
China, as the largest US creditor, is confronted by
the risks of US dollar devaluation. Mr. Chung
recommended that these three countries change
their export-led growth paradigms and boost
domestic consumption. While the road to an East
Asian economic community is hardly paved, recent
developments in the Chiang Mai Initiative and
Asian bond markets, as well as efforts to promote
regional exchange rate stability are steps in the
right direction to address East Asias needs.
See a more detailed summary of this event at
www.adbi.org/event/3276.chung.distinguished.speaker.post.
crisis.east.asia/.

Asias Contribution to Global Economic

Development and Stability Proceedings FEATURED PUBLICATION
of ADBIs Annual Conference 2008
Based on papers presented at ADBIs 11th annual promoting growth and
conference in 2008, this volume addresses three prosperity at home?
critical issues for Asia if the region is to How can Asia pro-
successfully balance greater global engagement mote climate change
with the development of more robust regional mitigation and equitable
markets in the context of the current economic growth to ensure
uncertainty surrounding the recovery of global these regional public
markets. These issues are: goods enhance global
How can Asias financial integration and welfare?
macroeconomic policies enhance global
economic stability and lead to a sustainable
recovery?
See more about this publication at
How can Asia contribute to a global trading www.adbi.org/book/2009/10/22/3354.adbi.annual.
system that ensures free and open markets while conference.2008.proceedings/.

Selected Upcoming Events

Sub-regional Workshop on Aligning Development Policies and Strategies to Achieve MDGs in

South Asia (Kathmandu)
46 This workshop will review the progress of MDG achievements of various South Asian countries in
November sectors such as health, environment (water and sanitation), and nutrition. It will also identify
impediments to MDG achievement, including the implications of the current global financial, food,
and fuel crises, and explore how these impediments can be appropriately addressed.

Regional Workshop on Challenges in the Implementation of Competition Law (Bangkok)

This competition law workshop will share country experiences and lessons learned in advocacy,
13
November drafting, and implementation of competition law; enhance the capacity of existing and new
competition agencies in implementing and enforcing policy and laws; and promote networking
among participating and international experts.

ADBI Annual Conference: Effects of Social Policy on Domestic Demand (Tokyo)

4
December This years Annual Conference will explore the role of social protection policies in global growth
rebalancing by understanding their impact on savings and consumption in Asian countries.
View all upcoming events at www.adbi.org/calendarofevents.

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 A s i a n D e v e l o p m e n t
Gaining Consumers Confidence
with Food Traceability Systems
Food safety is a growing concern worldwide. The
global food industry has been rocked with scandals
from mad cow disease and avian flu scares to
melamine-tainted milk. Cases of labeling fraud and
fears of malicious attacks on the food supply make
headlines around the world. These food scares have
increased public suspicions regarding food safety
in the increasingly complex food production and
trading system.
Establishing a traceability system is one popular
strategy to win the confidence of consumers while
addressing information requirements under
multinational and bilateral trade agreements. Food
traceability is a tool that tracks all steps of flow of
food from production to retailing. It allows food
producers or authorities to withdraw or recall
products that have been identified as unsafe. The
use of information and communication technology
(ICT) in traceability systems facilitates improved
efficiency in the management of the food supply
chain and in the event of a food safety incident, the
source of the problem can be quickly identified and
Recent Working Papers*
Enhancing Biodiversity Through Market-Based
Strategy: Organic Agriculture
Authors: Marie Mondeil and Sununtar Setboonsarng
The diversity of plant genetic resources from which the
worlds food crops are derived is steadily declining, due in
part to the reliance of modern agriculture on a limited
number of improved varieties. This paper argues that a
comprehensive system of market-based incentives is
necessary to ensure that smallholder farmers continue to
conserve the worlds plant genetic resources.
Read Working Paper 155 at www.adbi.org/working-
paper/2009/10/15/3347.biodiversity.organic.agriculture/.
ADBI News
Publisher: Takashi Kihara
ADBI News reports quarterly on the activities of the Asian
Development Bank Institute. The views expressed in this
newsletter do not necessarily reflect the views or policies
of the Asian Development Bank Institute or the Asian
Development Bank. Materials may be reprinted with credit
given to ADBI News. To send comments or to request a
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message to +81-3-3593-5571; or write to ADBI News,
Kasumigaseki Building 8F, 3-2-5, Kasumigaseki,
Chiyoda-ku, Tokyo 100-6008, Japan. For the web version,
go to www.adbi.org/newsletter/.
B a n k I n s t i t u t e
Concerns over food processing has lead to increased need
for food security systems.
action taken. Food traceability systems are
therefore critical for the food industry and the
public. It is expected that these systems will be
increasingly adopted in food-exporting countries as
a strategy to improve competitiveness in the global
food market. Developing countries can learn from
Japan, which uses ICT in its advanced food
traceability systems.
Adapted from ADBI Working Paper No. 139, Food Safety and
ICT Traceability Systems: Lessons from Japan for Developing
Countries. View the full paper at www.adbi.org/working-paper/
2009/05/28/3012.ict.food.traceability.system/.
*The ADBI Working Paper series is a continuation of the formerly
named Discussion Paper series; the numbering of the papers has
continued without interruption or change.
Why was Japan Hit So Hard by the Global
Financial Crisis?
Authors: Masahiro Kawai and Shinji Takagi
The authors of this paper use vector autoregression
analysis to investigate the effects of the global financial
crisis on the real economy. They find that Japan has
become more responsive to global shocks due to the
changing structure of its trade and economy, and make
appropriate policy recommendations.
Read Working Paper 153 at www.adbi.org/working-
paper/2009/10/05/3343.japan.gfc/.
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