Asia Regional Economic Integration

Asian Regional Economic Integration: Fact or Fiction?ЎЇ

Presented at the Centre for Strategic and International Studies on 23 June

2005, Washington, DC, viewed on 20/02/2007,

http://www.adb.org/Documents/Speeches/2005/ms2005046.asp

Reading 2 of 5 (Essential) Texts on current pages 7-30 (not original book pages)

Williamson, Peter J 2004, ÐŽ®Consolidating the Asian Playing FieldЎЇ, in Winning in

Asia Strategies for Competing in the New Millennium, Harvard Business

School Press, Boston, pp. 191-218.

Reading 3 of 5 (Essential) Texts on current pages 31-70 (not original book pages)

Munakata, Naoko 2002, ÐŽ®Whither East Asian Economic Integration?ЎЇ, RIETI

Discussion Paper, RIETI, viewed on 20/02/2007.

http://www.rieti.go.jp/jp/publications/dp/02e007.pdf

Reading 4 of 5 (Optional) Texts on current pages 70-103 (not original book pages)

Williamson, Peter J, 2004, ÐŽ®Creating a New Breed of Asian MultinationalsЎЇ, in

Winning in Asia: Strategies for Competing in the New Millennium, Harvard

Business School Press, Boston, pp. 157-189.

Reading 5 of 5 (Optional) Texts on current pages 104-125 (not original book pages)

Hamlin, Michael Alan 2000, ÐŽ®Guanxi, Mergers and Acquisitions, and the New

Asian CorporationЎЇ, in The New Asian Corporation: Managing for the Future in

Post-Crisis, Jossey-Bass, San Francisco, pp. 103-124.

Texts begin from here

Reading 1 of 5(Optional)Texts on current pages 1-6 (not original book pages)

Kuroda, Haruhiko, ÐŽ®Asian Regional Economic Integration: Fact or Fiction?ЎЇ

Presented at the Centre for Strategic and International Studies on 23 June

2005, Washington, DC, viewed on 20/02/2007,

http://www.adb.org/Documents/Speeches/2005/ms2005046.asp

Weekly Readings

Week 6

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"Asian Regional Economic Integration: Fact or Fiction?"

Keynote Speech by

Haruhiko Kuroda

President

Asian Development Bank

At the Center for Strategic and International Studies

23 June 2005 Washington, DC

I. Introduction

Let me first thank Mr. Katz for his kind introduction, and the Center for

Strategic and International Studies (CSIS) for providing this opportunity.

It is a great pleasure for me to speak to you today about Asia's economic

integration. As a key partner in Asia's development, the Asian Development Bank

(ADB) has been involved with regional cooperation and economic integration

initiatives for many years.

ADB's vision is an Asia and Pacific free of poverty. To pursue this vision, we

provide finance and advice to borrowing member countries - development

solutions to help them achieve their goals.

Regional cooperation and integration is part of that solution. Only by working

together can Asian countries achieve sustained, rapid growth to reduce the still

overwhelming number of people living in poverty. And only by working together

can we create a future of shared prosperity, stability and peace.

So, let me turn to the question: is Asian economic integration fact or fiction?

II. Asia and the Pacific: Status of Integration I will start with a few facts.

Fact number one: Intraregional trade is flourishing.

This is especially true of East Asia, where intra-regional trade has

grown from less than 35% of all trade in 1980 to 54% in 2003.1 This

is a lower proportion than in the EU, but significantly higher than

the NAFTA region, where intra-regional trade represents 46% of all

trade.

Fact number two: Intraregional investment is significant.

As you know, foreign investment in the region, or FDI, picked up

rapidly in the early 1980s. As large multinational firms diversified

across Asia, new regional production networks and new channels

for intraregional investment were created.

In the period covering 1990 to 2002, for example, Japan was the

largest developed country investor in the ASEAN countries

(excluding