Kemal Dervis, Masahiro Kawai, and Domenico Lombardi (eds.). Asia and Policymaking for the Global Economy.
Zia, Uzma
Kemal Dervis, Masahiro Kawai, and Domenico Lombardi (eds.). Asia
and Policymaking for the Global Economy. Asian Development Bank Institute, Tokyo. Washington, D.C.: Brookings Institution Press, 2011.
200 pages, USD 19.95.
Asia and Policymaking for the Global Economy is a collection of
analysis on global economic cooperation. In particular it highlights
Asia's accomplishments, opportunities, its potential, and the role
it can play in the global economy. It is divided into five chapters each
constituting a different insightful article.
The first chapter gives an introduction and an over view of the
topics analysed in this book. It focuses on the structural
transformation in Asia and the world economy, and discusses the rise of
Asia and implications for economic coordination at international level.
The second chapter focuses on growth dynamics in Asia in a global
context. It provides an important contribution to the subject issue as
it analyses the sources of structural transformation experienced by
world economy. It suggests that policy-makers should focus on global
savings and investment structures to rebalance world economy. The
rebalancing debate is then connected to the debate on the international
monetary system and role of reserve currencies in this chapter.
Policy coordination among economies of the world is discussed in
the third chapter. Global macro imbalances have been highlighted and the
analysis presents rich information on the feasibility of rebalancing.
The rebalancing could be achieved in three ways: structural reforms in
major economies, reforms in the Asian financial sector, and via
enhancing intra-regional trade and investment flows. The creation of
physical infrastructure has also been advocated which will in turn help
expand manufacturing activity, raise productivity levels and both will
increase intra regional economic activity.
Chapter 4 analyses financial stability in the emerging Asia. Based
on the financial crises that affected the US and Europe and then hit
Asia through the trade channel, this chapter paves ways to look forward
to increasing globalisation of financial activities and sustained
economic growth. It suggests that the financial authorities in emerging
Asia must set up financial supervision and carry out regulation in three
ways: strengthening of micro prudential supervision, analysing financial
markets and their interaction with economy, and re-examining monetary
policy framework. This chapter also emphasises the need for increased
financial interdependence between Asian financial authorities.
"The International Monetary System through the Lens of
Emerging Asia" constitutes the fifth chapter of this book. It
assesses the implications of the rise of Asia by focusing on the reform
of international monetary system. The discussion elaborates the
asymmetry" between globalisation of economic and financial
activities driven by integrated emerging economies. It also consists of
some lessons from the IMF's role in Asian crisis. The G-20 has come
up with its own identity and a channel emerging economies can voice
their concerns. Asia's support for IMF will be the initiative for
its effectiveness and for providing better global economic policy
cooperation. This volume is an insightful collection of policy oriented
articles which can assist both academics and policy-makers in tackling
issues of the emerging global economy.
Uzma Zia
Pakistan Institute of Development Economics, Islamabad.
