Time is running out for Japan to join the Trans-Pacific Partnership Agreement (TPP), as the negotiating countries aim to conclude the talks before the Asia-Pacific Economic Cooperation (APEC) meeting in October this year. Although former Japanese Prime Minister Yoshihiko Noda had expressed strong interest during his tenure in joining the TPP negotiations, his successor, Prime Minister Shinzo Abe, has not expressed similar sentiments as the Liberal Democratic Party (LDP) took a cautious stance on the TPP during Japan’s December 2012 general election. The TPP is a high-standard and comprehensive trade agreement under negotiation by Australia, Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States (US), and Viet Nam. [Read more]
The pattern of world energy trade has changed significantly in recent decades and this is having profound implications for global geopolitics. Several Asian economies, particularly the People’s Republic of China (PRC) and India, have emerged as the region’s most conspicuous energy consumers because of their phenomenal economic growth. On the supply side, the world’s largest energy producers are located in the geographically proximate regions of Central Asia, the Middle East, and Russia. A complementary relationship between these energy exporters and suppliers is evident and is being strengthened, connecting together Central and East Asia, parts of India, the Persian Gulf, and Russia. [Read more]
East Asia’s attitude toward free trade agreements (FTAs) has changed. Slow progress in global trade talks has led to a surge in FTAs across Asia. With the World Trade Organization (WTO) Doha Round trade talks stalled, Asian countries see FTAs as a way of liberalizing trade and investment and sustaining economic recovery. The number of signed and implemented FTAs in the region has increased from three in 2000 to more than 60 in 2012, sparking concerns about an Asian “noodle bowl” of agreements. Critics worry about overlapping rules of origin (ROOs) requirements, which may be costly to business, especially small and medium-sized enterprises (SMEs), and argue that this wave of agreements will undermine the multilateral liberalisation process. [Read more]
The formation of a Free Trade Area of the Asia–Pacific (FTAAP) has been intensively discussed in recent years. However, it is anticipated that such an Asia-Pacific Economic Cooperation (APEC)-wide FTA would take many years to negotiate and involve numerous studies among all the APEC members, currently 21 in number. The Trans-Pacific Partnership (TPP) could be a viable alternative. It is intended to be a “high-quality, comprehensive 21st century FTA” that will promote economic integration in the Asia-Pacific region. In addition to deep commitments to tariff reductions, it aims to cover services trade, investment, intellectual property, government procurement, competition policy, labor, the environment, and many other issues affecting trade and investment. [Read more]
The current European crisis has highlighted the policy mistakes that were made in the process of European financial and monetary integration. It has exposed major deficits in the eurozone’s institutional framework, including insufficient macroeconomic policy coordination and the lack of a crisis response mechanism (which then had to be negotiated in the midst of crisis). One of the major failures that led to the current European predicament was that national and European policymakers allowed the build-up of huge macroeconomic imbalances within the eurozone. Wages and prices in southern “periphery” countries (with Ireland being an honorary member of the south) rose much more quickly than in the northern “core” countries such as Germany. [Read more]
On 3 October 2011, Russian Prime Minister Vladimir Putin proposed the establishment of a Eurasian Union in an article published in the Russian broadsheet Izvestia. The article was entitled “New integration project for Eurasia – making the future today.”
His idea is groundbreaking. According to Putin, the Eurasian Union will serve as a bridge between Europe and the dynamically developing Asia and Pacific region.
Putin’s idea of a Eurasian Union would continue and expand the existing Customs Union, operational since 1 July 2011, and the Common Economic Space (CES), launched on 1 January 2012 and including Belarus, Kazakhstan, and Russia. These are the first supranational bodies that have emerged after the Soviet era. [Read more]
Concerns have been expressed in the Western media that Chinese aid to Africa represents a form of “new colonialism.” However, comparing Chinese and US health programs in Africa suggests that the two have more in common than might be expected. Both countries’ health efforts in the region share similarities in terms of objectives, priorities and challenges. Foreign aid from the PRC and the US is provided not only as development assistance but also as a tool of soft power. Both the PRC and the US shape some of their health efforts to boost friendship and goodwill across Africa. Public opinion polls suggest that both countries are generally viewed positively by Africans. [Read more]
The crisis in the eurozone is critically important for Asia. At a distinguished speaker seminar at ADBI on 1 December 2011, three eminent European economists examined the crisis and put forward tentative solutions. In this post based on the seminar transcripts, Stefan Collignon outlines his hopes and fears for the single currency. We are in the midst of a very severe crisis. It is not clear that the euro will survive, and if the euro does not survive then the European Union will not survive, and if the EU does not survive than I am not sure how much longer we will have peace in Europe. [Read more]
The crisis in the eurozone is critically important for Asia. At a distinguished speaker seminar at ADBI on 1 December 2011, three eminent European economists examined the crisis and put forward tentative solutions. In a post based on the seminar transcripts, one of the speakers, Charles Wyplosz, identifies some of the mistakes that have been made in the response to the crisis and puts forward three scenarios for its resolution. Since late 2009 the European debt crisis has worsened because of the wrong policy responses by European politicians. Some progress has been made but we are not yet there. We have a historic disaster with global implications on the way and unless a miracle happens I am pretty pessimistic about the future. [Read more]
I am delighted to welcome readers to Asia Pathways, the new blog of the Asian Development Bank Institute (ADBI). Our goal in launching this blog is to present readable and lively analyses of important economic and development issues in the Asia and Pacific region. We hope to encourage debate among policymakers, researchers, practitioners, journalists and other sections of the public who may wish to follow and engage in public policy discourse. ADBI already produces a wide range of analytical material on Asia and the Pacific, ranging from working papers and policy briefs to scholarly books. I encourage readers to visit our website for full details of these. [Read more]
- Tan Chee Hoong on Is political union Europe’s solution to the eurozone crisis?
- Dr. Will Hickey on Indonesia’s fuel subsidies benefit the rich far more than the poor
- Tariq Ali on Is political union Europe’s solution to the eurozone crisis?
- Vikram Chowdery on Is regional economic integration enough? The search for ‘Wave 3’ growth
- Vikram Chowdery on Internationalization of emerging market currencies: A way forward
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