2012

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ASIAN DEVELOPMENT BANK INSTITUTE
Kasumigaseki Building 8F
3-2-5 Kasumigaseki, Chiyoda-ku
Tokyo 100-6008
Japan
Tel: +81-3-3593-5500
Fax: +81-3-3593-5571
URL: www.adbi.org
Email: info@adbi.org
2013 Asian Development Bank Institute
Cover photo: Kasumigaseki Building, Tokyo, Japan
Table of Contents
Deans Message ................................................................................................................................... 2
Advisory Council ................................................................................................................................... 3
Vision and Overview ........................................................................................................................... 4
Results Framework ................................................................................................................................ 5
Collaboration within ADBI and with ADB Headquarters ................................................................. 6
Working with Other Knowledge Partners .......................................................................................... 8
Research ............................................................................................................................................ 12
Capacity Building and Training ........................................................................................................ 24
Outreach ............................................................................................................................................. 30
Appendix 1: Organization Chart ...................................................................................................... 37
Appendix 2: Deans and Advisory Council Members ..................................................................... 38
Appendix 3: Research Events ........................................................................................................... 39
Appendix 4: Capacity Building and Training Events....................................................................... 42
Appendix 5: Selected ADBI Publications ......................................................................................... 44
Appendix 6: Top 30 Downloads of 2012 ........................................................................................... 52
List of Abbreviations
ADB Asian Development Bank
ADBI Asian Development Bank Institute
AEC ASEAN Economic Community
AFDC Asia Pacifc Finance and Development Centre
APEC Asia-Pacifc Economic Cooperation
ASEAN Association of Southeast Asian Nations
BRICs Brazil, Russia, India, Peoples Republic of China
CAREC Central Asia Regional Economic Cooperation
CASS Chinese Academy of Social Sciences
CBT capacity building and training
CEPII Centre dEtudes Prospectives et dInformations Internationales
CLMV Cambodia, Lao Peoples Democratic Republic, Myanmar, Viet Nam
DAJA Developing Asia Journalism Awards
DMC developing member country
DRM disaster risk management
ESCAP Economic and Social Commission for Asia and the Pacifc
ERD Economics and Research Department, ADB
EU European Union
FTA free trade agreement
G20 Group of Twenty
IADB Inter-American Development Bank
IMF International Monetary Fund
IWRM Integrated Water and Resources Management
NEAR North East Asia Research Foundation
OECD Organisation for Economic Co-operation and Development
PPP public-private patnership
PRC Peoples Republic of China
RePEc Research Papers in Economics
SME small and medium-sized enterprise
SSRN Social Science Research Network
UNDP United Nations Development Programme
VIIES Vienna Institute of International Economic Studies
WTO World Trade Organization
US United States
$ = US dollar
2
T
he year under review was highlighted by ADBIs
development and introduction of a results
framework, increased collaboration internally
and with ADB Headquarters, a strong focus on external
knowledge partnerships, and the advancement of research
as well as capacity building and training (CBT) activities.
The ADBI results framework contains a set of 15
measurable indicators that will enable performance to
be tracked in a more systematic and structured way than
in the past. This is the first knowledge management
results framework in ADB and the frst among the major
multilateral development banks to combine research, CBT,
and outreach.
Through the year, the coordination of Research and
CBT activities was strengthened with joint projects that
involved the active participation of ADBIs Research and
CBT Departments through all phases of the project cycle.
Moreover, ADBIs Outreach Unit worked closely with
both departments to disseminate ADBI outputs along
multiple channels.
ADBI continued in 2012 to improve ties with its parent
institution, ADB, with collaboration at the level of strategic
planning, joint ownership of major studies, and individual
activities. Formal contact points were also appointed in
ADBI and departments at ADB Headquarters to establish
more structured communications. As well, ADBI staff
began to serve as peer reviewers for certain ADB projects.
Working with external knowledge partners is a priority
for ADBI. In 2012, ADBI collaborated with global and
regional organizations, government, public agencies,
think tanks, universities, and other knowledge partners.
Such collaboration broadens ADBIs understanding
of development issues, raises the quality of its research
and CBT activities, widens outreach, and enhances the
impact of activities. Such external partnerships in 2012
included the ADBI-OECD Conference on Services in
Selected Sectors and the ADBI-World Bank Roundtable
on Regional Commodity Exchange Market Integration in
Asia.
Besides advancing the work of ongoing research projects,
six new projects with cross-cutting themes were initiated in
2012. Tese included the new fagship study Connecting
South Asia and Southeast Asia, which will analyze how
closer regional connectivity and economic integration
between South Asia and Southeast Asia can beneft both
subregions given the new role played by Myanmar in
facilitating this process. Moreover, the study Future of the
World Trading System: Asian Perspectives was launched
in 2012 to undertake a broad and comprehensive
examination of key changes occurring in the world trading
system and their policy implications for Asia.
CBT activities are spread across the themes of inclusive
and sustainable growth, regional cooperation and
integration, and governance for policies and institutions,
of which there were 23 policy dialogues, six course-based
training programs, and one e-learning course in 2012.
Microfnance Training of Trainers was a distance learning
course that sought to strengthen the institutional capacity
of microfinance in the region by increasing the number
and country coverage of accredited microfnance trainers.
Running for the eighth time, this course had over 300
participants in 2012.
In the area of outreach, ADBI continued eforts to widely
disseminate ADBI outputs in the form of publications and
through top-tier and local media, the ADBI website, and
social media channels. A new initiative for 2012 was the
introduction of the ADBI blog Asia Pathways, through
which short original contributions on economic and
development issues in Asia and the Pacifc are presented.
It is my sincere wish that this 2012 activity report of
ADBI provides a solid understanding of our work as
the think tank of ADB and how our strategic focus and
activities contribute to ADBIs vision of being the leading
knowledge center for economic development in Asia and
the Pacifc.
Masahiro Kawai
Dean & CEO
Asian Development Bank Institute
Deans Message
3
T
he functions of the Advisory Council are set
out in Article IV of the Statute of the Asian
Development Bank Institute. Te Council has
seven members, one of whom is a senior ofcial from
ADB Headquarters (HQ). Te other members of the
Advisory Council are distinguished practitioners or
scholars in the field of development or management
selected from among ADBs members on a broad
geographical basis. Members of the Advisory Council
are appointed for two years by the ADB President
and may be reappointed. Tey meet twice a year. Te
Advisory Council selects its own chair.
In accordance with the Statute, the Advisory Council
provides advice and recommendations on the strategic
directions of ADBI and reviews the ADBI work
program. In the governance structure of ADBI, the
Advisory Council plays a crucial role in guiding
ADBIs activities and ensuring that its work products
and chosen projects are of the highest standards and
relevance.
Te Advisory Council met in Tokyo on 27 April 2012
and Manila on 2 October 2012, where it considered
ADBIs work program for 20132015.
Advisory Council
Standing (from left): Masahiro Kawai (ADBI Dean), Masahisa Fujita, Changyong Rhee
Seated (from left): Sebastian Paust, Haruhiko Kuroda (ADB President), and Cinnamon
Dornsife. (Not pictured: Ajit Kumar Seth)
Name Country
Cinnamon Dornsife
Acting Co-Director of the International Development Program,
The Paul H. Nitze School of Advanced International Studies, Johns Hopkins University
United States
Masahisa Fujita
President and Chief Research Ofcer, Research Institute of Economy, Trade and Industry
Japan
James Richard Gilling
First Assistant Director General, AusAID
Australia
Justin Yifu Lin
Honorary Dean, National School of Development, Peking University
Peoples Republic of China
Sebastian Paust
Senior Adviser to the Managing Board, Deutsche Gesellschaft fr Internationale
Zusammenarbeit GmbH
Germany
Ajit Kumar Seth
Cabinet Secretary and Cabinet Secretariat, Government of India
India
Changyong Rhee
Chief Economist
ADB
Justin Yifu Lin
James Gilling
4
Vision and Overview
T
he ADB Institute is recognized as the leader
in the creation and sharing of knowledge on
economic development in the Asia and Pacifc
region. ADBI conducts research and capacity building
and training activities that contribute to ADBs overall
objective of poverty reduction.
ADBI focuses on medium- to long-term development
issues of strategic importance to senior policymakers.
The objectives of ADBI, as set forth in its Statute,
are to identify efective development strategies and to
improve the capacity of agencies and organizations in
developing member countries.
ADBI strives to be demand-driven and to respond
to important challenges affecting many stakeholders
in the region in a timely, operationally relevant, and
policy-oriented fashion.
ADBI increases the impact of its activities by working
closely with leading think tanks to shape the debate on
key emerging issues and to develop sound and practical
recommendations regarding policy reforms.
ADBI ensures the quality of its research and capacity
building and training programs by pursuing excellence
and originality in areas where it has an unmatched
strategic advantage, such as the analysis of emerging
policy issues from a regional perspective. To further
strengthen its reputation as a trusted knowledge
institution, ADBI has introduced a results framework
for its programs and activities. It also seeks to enhance
its visibility, impact, and accessibility through the use
of new media and refned knowledge products.
ADBI has been pursuing a work program with three
strategic priority themes, which form a coherent basis
for all its activities:
Inclusive and sustainable growth
Regional cooperation and integration
Governance for policies and institutions
Pr i vat e s ect or i s s ues , as dr i ver s of economi c
development, cut across all the strategic themes.
ADBIs fnancial statements can be found in the ADB
Annual Report 2012, Vol. 2.
5
A
DBI adopted a recommendation in the special
evaluation study of ADBI published in 2011
1

that it should develop a results framework,
accomplishing it in close coordination with knowledge
departments at ADB HQ.
The ADBI framework is the first in ADB to focus
on knowledge activities and it has drawn on state-of-
the-art thinking. The framework contains a set of 15
measurable indicators that will enable performance
to be tracked over time in a more systematic and
structured way than in the past. Monitoring against
these indicators will begin in 2013.
This is the first knowledge management results
framework in ADB and the first among the major
multilateral development banks to combine research,
capacity building and training, and outreach. ADB
HQ is in the process of establishing its own knowledge
management results framework and ADBI will be
working closely with the knowledge departments to
ensure that the frameworks are compatible.
The results framework will make ADBIs strategic
direction much clearer for stakeholders and for
staff, who will be able to see how their individual
achievements ft into ADBIs broader picture.
The ADBI results framework is a clear indication
of how seriously ADBI takes the need to track and
improve its performance. Establishing well-defined
measurable indicators and monitoring performance
against them will give management a clearer idea of
where ADBIs strengths and weaknesses lie and will
enable them to improve performance as a result.
Results Framework
1
ADB. 2011. Special Evaluation Study: Performance of the Asian Development Bank Institute: Research, Capacity Building and
Training, and Outreach and Knowledge Management. Manila.
ADBIs Research and Capacity Building
and Tr ai ni ng ( CBT) depar t ment s
continued to act as a team and to share
resources in undertaking their activities.
Research fellows participated in selected
CBT activities as resource speakers and as
discussants, allowing them to supplement
their theoretical work with insights
from CBT participants engaged on a
day-to-day basis with emerging issues
in developing countries. Joint activities
organized by the Research and CBT
departments in 2012 included: OECD
ADBI Roundtable on Capital Market
Ref orm i n Asi a, CLMV Proj ect
Training on Agricultural Productivity
and Natural Resources Management,
and Policy Dialogue: ASEAN, the PRC,
and India: Te Great Transformation?
The Outreach Unit works with the
Research, CBT, and Administration,
Ma na ge me nt , a nd Coor di na t i on
departments to ensure that all ADBI
events, publications, working papers,
special programs, and partnerships are
reflected on the ADBI website in an
accurate and timely manner.
The coordi nati on of Research and
CBT activities was strengthened in
2012 t hrough more j oi nt proj ect s
and by involving both departments
in all phases of these joint projects.
For example, the joint Research and
CBT project, Strengthening ASEAN
Transitional Economies, will include
research and CBT components in all
phases. For other research projects,
CBT is involved in the early stages of
development of such projects to ensure
that their contents are also appropriate
Collaboration within ADBI and with ADB
Headquarters
Collaboration within ADBI and with ADB Headquarters
7
for CBT purposes. Research is also involved in
delivering CBT activities.
Working with ADB Headquarters
ADBI has greatly strengthened its bonds with its parent
institution, ADB, in recent years. Collaboration occurs
at the level of strategic planning, joint ownership
of major studies, and individual activities. Formal
contact points have been appointed in ADBI and
departments at ADB HQ to establish more structured
communications. ADBI staff have served as peer
reviewers of ADB projects.
Strategic planning. All ADBI medium- and long-
term planning is carried out in close consultation
with the ADB Board and management and with
the knowledge departments and, where relevant,
operations departments at ADB HQ. Before launching
a major initiative, ADBI consults extensively with
relevant departments at ADB HQ to ensure that
the strengths of the two institutions can be used to
maximum advantage. In addition, ADBI conducts
an annual consultation exercise with ADB HQ to
ensure that any variations in the work program are
communicated. Also, ADBI provides input when ADB
departments launch work programs. All ADBI projects
in the three-year rolling work program are reviewed
and commented on by ADB departments before the
work program is submitted to the Board. The ADB
chief economist is a member of the ADBI Advisory
Council and gives advice and recommendations on the
strategic directions and work programs of ADBI and
on potential synergy with ADB.
Major studies. The ADBI flagship project, Climate
Change and Green Asia, is a joint project with ADB
HQ, with the Regional and Sustainable Development
Department taking the lead in Manila. Other major
ADBI projects being carried out with ADB include:
ASEAN, the Peoples Republic of China, and
India: The Great Transformation? (with numerous
departments); ASEAN 2030: Toward a Borderless
Economic Community, and Supporting Equitable
Economic Development in ASEAN: A Project Focused
on Cambodia, Lao PDR, Myanmar, and Viet Nam
(both primarily with the Southeast Asia Department);
Pacifc 2030 (mainly with the Pacifc Department); and
Disaster Risk Management in Asia and the Pacifc (with
the Regional and Sustainable Development Department).
Individual activities. ADBI continued to work
closely on research and capacity building activities and
knowledge products with various departments at ADB
HQ during 2012. During the year, ADBI collaborated
with the Economics and Research Department, Ofce
of Regional Economic Integration, Private Sector
Operations Department, Regional and Sustainable
Devel opment Department, Strategy and Pol icy
Department, and regional departments.
Results Framework
ADBI adopted the recommendation in the special
evaluation study of the institute that it should develop
a results framework, which it has developed in close
coordination with knowledge departments at ADB
HQ. (see p. 5).
In 2012, ADBI collaborated with global
and regional organizations, government,
public agencies, think tanks, universities,
and other knowledge partners. This
broadens ADBIs understandi ng of
development issues, raises the quality of
its research and CBT activities, widens
its outreach, and enhances the impact of
its activities. Examples of activities ADBI
conducted in 2012 with external partners
include the following.
ADBIOECD Conference on Services
Trade in Selected Sectors: Audiovisual
Services, Higher Education, and
Financial Services (January 2012)
with OECD; and Indian Council for
Research on International Economic
Relations, India
The 2nd ADBI-OECD Roundtable
on La bor Mi g r a t i on i n As i a :
Managing Migration to Support
Inclusive and Sustainable Growth
(January 2012) with OECD
OECDADBI 12th Roundtabl e
on Capital Market Reform in Asia
(February 2012) with OECD
ADBINEAR Joi nt Conference:
Lessons from JapanIs Japan Koreas
Future? (March 2012) with North
East Asia Research Foundation,
Republic of Korea
ADBIPRI Conference: Achieving
Financial StabilityLessons from the
Eurozone Crisis for Macroeconomic
and Financial Stability (March 2012)
with Policy Research Institute of
Japans Ministry of Finance
8t h Mi c r of i na nc e Tr a i ni ng of
Tr a i ne r s : A Bl e nde d Di s t a nc e
Learning Course (April 2012) with
World Bank, US
Working with Other Knowledge Partners
Working with Other Knowledge Partners
9
ADBI Partners
International organizations: International Monetary Fund (IMF); Organisation for Economic Co-operation and Development (OECD),
including its Task Team on South -South Cooperation; World Bank, including its Tokyo Development Learning Center; World Trade
Organization (WTO); European Bank for Reconstruction and Development (EBRD); Inter-American Development Bank
Regional organizations: Asia-Pacifc Economic Cooperation (APEC), including its Business Advisory Council and its Secretariat;
Association of Southeast Asian Nations (ASEAN), including its Secretariat; Network of Asian River Basin Organizations (NARBO); Mekong
Institute.
National government agencies: Australian Agency for International Development (AusAID); Bank of Italy (Representative Ofce
in Tokyo); Japan Bank for International Cooperation; Japan Fair Trade Commission (JFTC); Financial Services Agency, Japan; Japan
International Cooperation Agency; Japan Water Agency; Ministry of Finance, Japan
Think tanks, universities, and other knowledge institutions: Australian APEC Study Centre, RMIT University, Australia; Australian
National University; Brookings Institution; Bruegel, Brussels; Cambodia Development Resource Institute; Centre dEtudes Prospectives
et dInformations Internationales (CEPII); Chatham House, UK; Chinese Academy of Social Sciences (CASS); Economic Research Institute
for ASEAN and East Asia, Indonesia; Indian Council for Research on International Economic Relations (ICRIER); Istituto Superiore Mario
Boella (ISMB), Italy; Korea University; ; Myanmar Development Research Institute; National Bureau of Economic Research, US; Peterson
Institute for International Economics; Policy Research Institute, Ministry of Finance, Japan; Politecnico di Torino, Italy.
MOU partners: Australian APEC Study Center at RMIT University; Bruegel, Belgium; Bertelsmann Stiftung, Germany; Centre dEtudes
Prospectives et dInformations Internationales (CEPII), France; Chines Academy of Social Sciences - Institute of World Economics and
Politics (CASS-IWEP); Centre for East Asian Studies at Korea University.
The 8th East Asia Top Level Officials Meeting
on Competition Policy and the 7th East Asia
Conference on Competition Law and Policy (May
2012) with Japan Fair Trade Commission (JFTC);
and Malaysia Competition Commission
The 3rd Hi gh-Level Pol i cy Roundtabl e on
Int ernat i onal Inves t ment Pol i ci es i n As i a:
Responsibility and Sustainability (May 2012) with
OECD; and Asia-Pacifc Financial Development
Center, PRC
Asi aLat i n Ameri ca: Forgi ng a Long-Term
Partnership (May 2012) with ADB HQ; and the
IADB
NBER Japan Project Meeting (June 2012) with
National Bureau of Economic Research, US;
AustraliaJapan Research Centre, Australia; Columbia
University, US; and University of Chicago, US
Asi a-Paci fi c Forum on Fi nanci al Incl usi on:
Approaches, Regul ati ons, and Cross-Border
Is s ues ( June 2012) wi t h APEC Bus i nes s
Advisory Council; and Asia-Pacific Finance and
Development Center, PRC
Year in Review 2012
10
Managing the WTO Accession Process: Strategies,
Challenges, and Practices (July 2012) with ADB
HQ; AsiaPacific Finance and Development
Center (AFDC); World Bank, US
ADBIIADB Seminar: Shaping the Future of
the Asia and the PacificLatin America and the
Caribbean Relationship (July 2012) with Inter-
American Development Bank, US
Future of the Worl d Tradi ng System: Asi an
Perspectives (August 2012) with World Trade
Organization
ADBIWorld Bank Roundtable on Regional
Commodity Exchange Market Integration in Asia
(September 2012) with World Bank, US
Sub- r e g i ona l Wor ks hop on Mi l l e nni um
Development Goals for Central and East Asia
(September 2012) with ADB HQ; United Nations
Development Programme (UNDP); and United
Nations, Economic and Social Commission for
Asia and the Pacifc (UNESCAP)
Adjusting the World to the New Realities of the
International Financial System (October 2012)
with Reinventing Bretton Woods Committee, US
AsiaLatin American and the Caribbean High Level
Economic Policy Forum - AsiaLatin America:
New Engines of Growth of the Global Economy?
(October 2012) with ADB HQ; and IADB
PPP i nfrastructure Devel opmentBasi cs for
Negotiation (November 2012) with the Center
f or Fi nanc i al , Ec onomi c , and Banki ng
Studies, France; and AsiaPacific Finance and
Development Center, PRC
7th NARBO IWRM TrainingSolutions to Water
Sector Issues through IWRM: Te Mahaweli River
Basin Experience (November 2012) with ADB
HQ; Japan Water Agency; and Network of Asian
River Basin Organizations
The seminar, Adjusting the World to the New Realities of the International Financial System, provided insight on the eurozone
crisis, the regional cooperation responses, and the implications of the crisis for regional cooperation in Asia.
Working with Other Knowledge Partners
11
Networking
In 2012, ADBI continued to strengthen external
knowledge partnerships and disseminate knowledge
on development issues. Under the ADBI Visiting
Researcher Program, three vi si ti ng researchers
and fellows from the Asia and Pacific region each
spent up to 6 months at ADBI. ADBI continued
to communicate with former visiting fellows and
researchers to inform them of ongoing ADBI activities
and to inquire about the status of their ADBI working
papers and the outreach activities that they conducted
for their research papers. ADBIs database of visiting
fellows, researchers, and scholars is being used to
strengthen its network of alumni and friends of ADBI.
ADBIs e-newsline and e-notification services as well
as its Facebook and Twitter accounts are also used to
strengthen contacts with alumni of Research and CBT
events.
The Research Department addresses
sal i ent economi c and soci al i ssues
pertaining to ADB developing member
countries. For 2012, these included the
ongoing European sovereign debt and
banking crisis and its implications for
Asian countries and international trade
and investments. Other key issues and
research areas were examined in line
with the three ADBI priority themes:
i ncl us i ve and s us t ai nabl e growt h;
regional cooperation and integration; and
governance for policy and institutions.
Te following section highlights the fve
crosscutting themes projects and six new
projects that were launched in 2012, as
well as various events and publications.
Ongoing Projects with
Crosscutting Themes
Climate Change and Green Asia
This flagship project examines how
Asias emerging economies can respond
to increasing demand for low-carbon
development and introduce proactive
policies to strengthen green growth
practices in developing Asia. The study
has also helped create a network of
institutions that can draw on each others
expertise in promoting green economic
development. The studys findings will
be directly relevant to the policymaking
and investment communities, and it will
make important contributions to regional
policy cooperation for low-carbon green
growth. The study is being implemented
jointly with ADBIs Capacity Building
and Training Department (CBT), ADB
departments, particularly the Regional and
Research
Research
13
Sustainable Development Department, and several
Asian think tanks. Te project organized four events in
2012.
One such event, Beyond Nimbyism: Towards Integrated
Reforms for Financing Green Growth, focused on
reform measures to accelerate green growth and the
development of policy tools that catalyze investment
in climate change mitigation, adaptation, and green
technology.
ASEAN, the Peoples Republic of China, and
India: The Great Transformation?
This study examines in detail key development issues
affecting member countries of the Association of
Southeast Asian Nations (ASEAN), the Peoples
Republic of China (PRC), and India; and their role
in, and impact on, the regional and global economies.
The findings will provide policymakers with national
and regional medium- to long-term policy and strategy
frameworks for achieving a balanced, sustainable,
and resilient development process. The studys focus
is on maximizing the potential of Asias key emerging
economies while minimizing negative externalities by
fostering integration and cooperation. This study is
being implemented jointly with ADB departments.
Te project organized three events in 2012.
International Monetary and Financial
SystemAsian Perspectives
This project focuses on issues related to reforms of
the international monetary and financial system that
can support the development of Asian economies,
including institutional efforts to promote greater
regional monetary cooperation and exchange rate
coordination; new international reserve instruments;
and increasing the voice of Asian economies in global
financial institutions. Several components of this
project are being implemented jointly with other think
tanks.
ASEAN 2030: Toward a Borderless Economic
Community
The aim of the study is to analyze aspirations and
challenges for ASEAN as the region moves along
the next two decades of development. It defines the
vision of a RICH ASEANa Resilient, Inclusive,
Competitive, and Harmonious regionby 2030.
In line with this vision, the study will offer an
informative, technical, and detailed view of the main
challenges and the policy reforms and institutional
developments required, at both national and regional
levels, to bring them to higher income levels and to
improve the quality of life of their citizens. Tis project
is being implemented jointly with the ADB Southeast
Asia Department and the ASEAN Secretariat. The
project organized two events in 2012.
3DFLF,VODQG(FRQRPLHV
Te aim of this study is to provide strategic directions
to Pacific island economies, their governments, civil
society, and business communities on approaches
to development. The study will define the increased
economic interdependence of the Pacifc with East and
Southeast Asian countries and include a component
focused on the long-term implications for Pacific
island economies of the development of information
and communication technologies. Tis project is being
implemented jointly with the ADB Pacifc Department
and in collaboration with several development partners,
including the Australian Agency for International
Development and the World Bank. This project will
be continued in the 20132015 work program. The
project organized one event in 2012.
New Projects with Crosscutting
Themes
Connecting South Asia and Southeast Asia
Tis new fagship project, in collaboration with ADBs
South Asia and Southeast Asia Departments, will
analyze how closer regional connectivity and economic
integration between South Asia and Southeast Asia
can benefit both subregions, with a focus on the
role played by physical infrastructure and public
policies in facilitating this process. It will examine
major developments in South AsiaSoutheast Asia
economic cooperation, the role of economic corridors,
and regional cooperation initiatives. By virtue of its
strategic location straddling South Asia and Southeast
Asia, the recent opening up of Myanmar in political,
Year in Review 2012
14
economic, and financial terms presents a significant
new opportunity for enhancing these integration
eforts, with the promise of substantial gains for both
regions. This is particularly the case for land-based
transportation, such as highways and railroads, as
well as energy and information and communications
technology infrastructure. Te focus is on connectivity
in a broad sense, covering both hardware and software,
including investment in infrastructure, investment
financing and financial development, energy trading,
trade facilitation, and support of national and regional
policies. This study will provide: (i) an assessment of
sectors with the potential for signifcant benefts from
cooperation; (ii) specifc policy options at the regional,
subregional, and country levels to realize those benefts;
and (iii) the dissemination of the fndings to public and
private stakeholders through a senior policy seminar,
publication of the interim, fnal project reports and an
edited book, and media outreach. Te project held an
inception meeting in 2012.
Disaster Risk Management in Asia and the
3DFLF
Countries in the Asia and Pacifc region are particularly
exposed to natural disasters. Of the ten major natural
disasters with the highest death tolls since 1980, seven
have occurred in the developing countries of Asia. In
addition to the human lives lost, the average annual
direct economic cost related to property destroyed
in natural disasters in the region from 2002 to 2011
is conservatively estimated at $65 billion. Including
indirect economic losses associated with disruptions
to the wider national and regional economies through
interruptions of production networks and supply
chains, loss estimates would increase by a significant
margin.
Tis study, in collaboration with ADBs Regional and
Sustainable Development Department, aims to refect
the changing and rising trends of natural hazards and
disasters in the region, as well as to better assess human
and economic losses due to disasters, evaluate national
DRM strategies and policies and regional frameworks,
and make appropriate local, national, and regional level
recommendations. Te project organized three events,
including an inception meeting, in 2012.
The Future of the World Trading System:
Asian Perspectives
The world trading system is undergoing fundamental
changes because of the rise of emerging economies
such as the BRICs (Brazil, Russia, India, PRC), which
are expanding trade and investment globally. New
perspectives from Asia, whose economic importance is
growing rapidly, can help facilitate an orderly transition
and sustain trade-led growth for all economies involved.
For instance, an increasing share of Asias trade consists
of intermediate goods and services that pass through
different economies and industries before being
assembled into fnal products. Such global production
value chains substantially alter how economies interact
through trade. International rules and institutions for
trade can also have profound and lasting effects on
this shift and redefnition of trade relationships. In the
absence of a WTO Doha deal, the spread of free trade
agreements (FTAs) in Asia has implications for the pace
of trade liberalization, the consolidation of regional
trade rules, and the compatibility between global and
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Conference 2012 took stock of recent developments in regional integration and assessed policy choices for sustainable
growth.
Research
15
regional trade rules. Finally, following the 2008 global
financial crisis and amid the ongoing eurozone crisis,
protectionist tendencies are also on the rise in some
economies. Tis new project aims to undertake a broad
and comprehensive examination of these key changes
occurring in the world trading system and their policy
implications for Asia. The project held an inception
meeting in 2012.
Cambodia, Lao PDR, Myanmar, and
Viet Nam Project: Strengthening ASEAN
Transitional Economies
This project, in collaboration with ADBs Southeast
Asia Department, will conduct policy-oriented
economic research and CBT programs to support the
economic growth and social development of Cambodia,
Lao PDR, Myanmar, and Viet Nam, which have been
identifed in ADBIs ASEAN 2030 study as ASEANs
most dynamic economies for the next two decades, but
also those requiring more assistance from international
partner agencies in terms of policy-oriented research
and capacity building activities. Te project carried out
a training course in Bangkok in 2012.
Regional Cooperation and
Integration
AsiaLatin America Economic Ties
This study of economic ties between the Asia and
Pacific region and Latin America and the Caribbean
aims to bolster the economic relationship between
the two regions and to analyze the catalytic role of the
two regional development banks, ADB and the Inter-
American Development Bank (IADB). It analyzes
patterns of trade and investment flows, the spread
and depth of interregional free trade agreements, and
forms of bilateral and multilateral cooperation. The
projectjointly implemented by ADBI, ADBs Ofce
of Regional Economic Integration, and IADB
formed the basis of a high-level dialogue between the
Presidents of ADB and IADB at the annual meetings
of both banks in 2012. Te project held six events in
2012. Tis project will be continued in the 20132015
work program.
Key changes taking place in global trade were discussed by participants at the workshop Future of the World Trading System:
Asian Perspectives.
Year in Review 2012
16
One such event, Asia-Latin America: New Engines
of Growth of the Global Economy?, examined how
Asia and Latin America economic ties have deepened
in the last ten years, contributing to growth and
poverty reduction in both regions. These economies
demonstrated great resilience and rapid recovery after
the 2008 global financial crisis, and can become the
new drivers of the world recovery.
Outputs
Four books and 26 working papers were published
under this theme in 2012, including the following.
Infrastructure for Asian Connectivity is a follow-up
volume to Infrastructure for a Seamless Asia. This
book addresses the prospects and challenges concerning
both soft and hard infrastructure devel opment
in Asia and provides a framework for achieving
Asian connectivity through regional infrastructure
cooperation.
Shaping the Future of the Asia and the Pacifc-Latin
America and the Caribbean Relationship. Economic
ties between Asia and Pacific and Latin America and
the Caribbean (LAC) have reached a turning point.
In a mere decade, Asia has become the LACs second-
largest trading partner. Tis dynamic trade relationship
has boosted the LACs strategi c and economi c
importance to Asia. In its four chapters, the book
identifies the challenges and opportunities in each of
these pillars while drawing attention to the benefits
of balancing their development. This report is one of
the most downloaded books on the ADBI website and
represents a collaborative effort by ADBs Office of
Regional Economic Integration, ADBI, and IADB.
Regional and Global Monetary Cooperation
evaluates regional and global monetary cooperation,
focusing on financial safety nets, with a view toward
developing recommendations for more effective
cooperation, especially between the International
Monet ar y Fund (IMF) and regi onal f i nanci al
arrangements. This paper, by Mario Lamberte and
Peter Morgan, argues that a global financial safety
net (GFSN) should have adequate resources to deal
with multiple crises, be capable of a rapid and fexible
response, and not be encumbered by historical
impediments such as the IMF stigma that would limit
its acceptance by recipient countries. Oversight of
a GFSN needs to be based on cooperation between
global and regional forums, for example, the G20 and
ASEAN+3, or the East Asia Summit.
Asia-Latin America Free Trade Agreements: An
Instrument for Inter-Regional Liberalization and
Integration? This paper, by Ganeshan Wignaraja,
Dorothea Ramizo, and Luca Burmeister, uses new
criteria to examine whether Asian-Latin American
FTAs have facilitated market-led integration by
liberalizing trade and behind the border regulatory
barriers in 20 AsianLatin American FTAs in effect
in 2012. The evaluation of agreements suggests
that progress has been made in reducing trade and
regulatory barriers using FTAs, but more needs to
be done in future FTAs to solidify and expand the
process of deep integration between the two regions.
Traditional areas like goods and services are typically
well covered in inter-regional FTAs. The paper also
noted several challenges with existing AsianLatin
American FTAs including insufficient depth in some
agreements, variable rates of FTA used by business, and
the risk of a noodle bowl efect.
Te Peoples Republic of Chinas High-Tech Exports:
Myth and Reality, by Yuqing Xing, argues that the
PRCs leading position in high-tech exports is a myth
created by outdated trade statistics that are inconsistent
with trade based on global supply chains. Current trade
statistics mistakenly credit entire values of assembled
high-tech products to the PRC, thus greatly inflating
its exports. In 2009, the PRCs value-added accounted
for only about 3% of the total value attributed to its
exports of iPhones and laptop personal computers.
Tis paper suggests that a value-added-based approach
should be adopted to accurately measure high-tech
exports. Furthermore, if assembly is the only source of
the value-added generated by PRC workers, then in
terms of technological contribution, these assembled
high-tech exports are no diferent from labor-intensive
products, and so they should be excluded from the
high-tech classifcation.
Research
17
Institutions for Asian Integration: Innovation and
Reform, by Giovanni Capannelli and See Seng Tan,
is based on an ADB study completed in 2010. This
paper reviews literature on the design and development
of institutions for Asian regionalism and discusses the
future needs for innovation and reforms of the regional
institutional architecture having in mind the creation
of a regional economic community. Te paper follows
the taxonomy of institutions for regionalism adopted
by the ADB study and focuses on key governance
principles for such institutions by presenting case
studies of principles and institutions that worked and
did not work well in the past. Asias institutions for
regionalism need strengthening through reform and
innovation such as better governance and resourcing,
greater and more efective participation and delegation
of powers, streamlining of regional architecture,
including the phasing out of outdated or irrelevant
institutions and, where needed, the creation of new
ones.
Lessons of the European Crisis for Regional
Monetary and Fi nanci al Integrati on i n East
Asia, by Ulrich Volz, discusses the causes of the
eurozone crisis and the challenges that Economic and
Monetary Union countries face in solving it. This
paper highlights fve lessons for regional fnancial and
monetary cooperation and integration in East Asia: (i)
do not rush monetary integration; (ii) rethink costs
and benefts of international fnancial integration; (iii)
develop and strengthen a regional crisis prevention
and resolution mechanism before the next crisis hits
the region; (iv) reinforce surveillance and monitoring
of East Asian financial markets; and (v) put in place
adequate resolution procedures and recapitalize banks
swiftly once the banking system is in trouble.
Revisiting the Internationalization of the Yuan,
by Yongding Yu, dicusses how, as the worlds second
largest economy, largest trading nation, and the largest
foreign holder of United States government bonds, the
PRC needs a currency with international status that
can match its economic status in the global economy.
Tis paper suggests that before the internationalization
of the yuan can make meaningful progress, necessary
conditions, such as the existence of deep and liquid
fnancial markets, a fexible exchange rate and interest
rates responsive to market conditions must be created.
Yuan internationalization should be a natural course
of economi c devel opment and capi tal account
liberalization. To push yuan internationalization in an
artifcial way is counter-productive.
Inclusive and Sustainable Growth
Five books and 19 working papers were published
under this theme in 2012, several of which are
highlighted below.
Do Exporting Firms in the Peoples Republic of
China Innovate? Tis paper, by Ganeshan Wignaraja,
assesses factors driving firm-level export performance
in Asias super exporterthe PRC. While early studies
suggest that innovation is important, there has been
little research on opening the black box of technology
at the firm-level in the PRC. The paper undertakes
econometric analysis of innovation, learning, and
exporting in automobiles and electronics frms in the
PRC using a large-scale dataset to identify the most
appropriate innovation proxy. Drawing on recent
literature on innovation and learning in developing
countries, it tests two alternative proxies: (i) a
technology index to capture a variety of minor activities
involved in using imported technologies efficiently;
and (ii) the research and development to sales ratio,
which represents formal technological eforts to create
new products and processes, often at world frontiers.
Climate Change in Asia and the Pacific: How
Can Countries Adapt? Edited by Venkatachalam
Anbumoz hi , Me i nha r d Br e i l i ng, Se l va r a j a h
Pathmararajah, and Vangimalla R. Reddy, this book
compiles policies and best practices on climate
change adaptation, focusing on the structural and
nonstructural measures applied in the Asia and
Pacific region to adapt to climate change. From
environmental, social, and economic perspectives, the
most vital sectors for the region are agriculture, and
water and natural resource management. Although the
book targets the Asia and Pacifc region, key fndings
are relevant to other regions, such as Africa and Latin
America.
Year in Review 2012
18
Asias Wicked Environmental Problems, by Stephen
Howes and Paul Wyrwoll, considers four major
environmental challenges that policymakers across
developing Asia will need to address toward 2030:
water management, air pollution, deforestation and
land degradation, and climate change. This paper
contends that these challenges, each unique in their
own way, exhibit the characteristics of so-called
wicked problems. Detailed case studies illustrate the
complexity and significance of Asias environmental
challenges, and also their nature as wicked problems.
There wi l l be no easy or uni versal sol uti on to
environmental problems across Asia.
Europes Debt Crisis, Coordination Failure, and
International Effects, by Stefan Collignon, gives an
overview of the causes of the European debt crisis
and the consequences for external relations. This
paper finds that political mishandling has increased
uncertainty, which has contributed to a tendency for
the euro to become weaker. Europes debt crisis is in
reality a political crisis. Te eurozone economy is fully
integrated by the fact that the European Central Bank
alone sets monetary budget constraints on domestic
economies, but the political heterogeneities and
diferent member state jurisdictions prevent economic
policies that are consistent with the requirements of a
single currency.
How Shoul d We Bank with Foreigners?An
Empirical Assessment of Lending Behavior of
International Banks to Six East Asian Economies,
by Victor Pontines and Reza Y. Siregar, examines the
influence of critical determinants not only to overall
international bank lending to six selected Asian
countries, but also to cross-border bank lending.
One finding showed that cross-border lending by
international banks tends to pull out from host
economies during difcult times in source economies,
whereas such retrenchments are not evident on an
aggregated basis. Tis suggests that encouraging brick-
and-mortar afliates of international banks to set up
shop in recipient economies may be the judicious
choice for these economies. This paper also examines
the differences between subsidiaries and branches of
international banks in terms of their ability to shield
themselves from the financial difficulties of their
global parent banks. The results show that foreign
bank subsidiaries are more capable in this regard. Tis
finding carries with it the attraction of favoring an
organizational banking structure that is biased toward
subsidiaries.
Governance for Policies and
Institutions
Currency Internationalization: Lessons and
Prospects for the RMB
Te PRCs high economic growth over the past several
decades and its increasing economic integration with
other countries have led to a significant increase in
its importance in the global economy. Tis raises the
question on the kind of role the renminbi (RMB) will
play in international trade and finance. Indeed, over
the last decade, the PRC has embarked on a number
of initiatives to raise the status of the RMB in the
international monetary system. For instance, the PRC
began issuing RMB-denominated notes, bonds, and
funds in Hong Kong, China. Tese and other measures
will greatly accelerate the internationalization of the
RMB. This new project, in collaboration with ADBs
Economics and Research Department and Office of
Regional Economic Integration, aims to examine the
extent and pace of RMB internationalization and
how the experiences of other important international
currencies can provide guidance and lessons on the
likely path and prospects of RMB internationalization.
It studies the implications of a greater role of the
RMB for international trade, investment and fnancial
transactions for the PRC economy, its neighboring
and distant economies, and the global configuration
of major reserve currencies, most especially the RMBs
potential challenge to the supremacy of the US dollar
in the international monetary system.
Outputs
Five working papers were published under this theme
in 2012, including the following.
Research
19
Developing Asias Pension Systems and Old-Age
Income Support, by Donghyun Park and Gemma
Estrada, provides a broad overview of the state of
pension systems in eight selected Asian countries;
analyzes the pension systems; and identifies their
major structural weaknesses. This paper suggests
pension reform can reinforce and speed up reform in
other areas. Pension reform can also serve as a catalyst
for healthcare reform because old-age income and
healthcare are vital components of the well-being
of retirees. The paper concludes with specific policy
directions for pension reform to strengthen the capacity
of Asian pension systems in delivering economic
security for Asias large and growing population of
elderly.
The Peopl es Republ i c of Chi na and Gl obal
Imbalances from a View of Sectorial Reforms, by
Hiro Ito and Ulrich Volz, examines the impact of
sectorial reforms on current account imbalances, with
a special focus on the PRC. This paper argues that
domestic fnancial liberalization has a negative impact
on the current account balance among developing
or emerging market economies. Moreover, domestic
fnancial reform afects national saving and investment,
which in turn afects the current account balance. Te
paper also provides evidence that reforms relating to
the financial sector and social safety and healthcare
afect both saving and investment as well as the current
account of the PRC, the worlds largest current account
surplus country.
Implications of the Global Financial Crisis for
Financial Reform and Regulation in Asia examines
how the 19971998 Asian fnancial crisis highlighted
shortcomings in Asian financial markets, notably the
underdevelopment of domestic bond markets and
deficiencies in corporate governance, transparency,
and financial regulation. Since then, Asian financial
markets have made considerable progress. Edited by
Masahiro Kawai, David Mayes, and Peter Morgan,
this book highlights the challenges imposed by the
2008 global financial crisis(i) preventing financial
crises; (ii) responding to financial crises when they
occur; (iii) managing international capital flows; and
(iv) deepening and integrating financial markets to
provide an alternative source of funding to foreign
capital fowsand suggests policy recommendations to
address them.
Central Banking for Financial Stability in Asia, by
Masahiro Kawai and Peter Morgan, reviews the recent
literature on this topic and identifies relevant lessons
for central banks, especially those in Asias emerging
economies. Tis paper examines the debate about the
definition of financial stability; the consistency of a
financial stability objective with the more traditional
and well-established central bank objective of price
stability; the appropriate governance structure for
coordination of macroprudential policy with other
fnancial supervisors and entities; and the appropriate
policy instruments to achieve macroprudential policy
objectives, including conventional, unconventional,
and macroprudential tools. The lean versus clean
debate has been resolved, largely in favor of the former,
and central banks should have a financial stability
mandate and the policy tools to successfully pursue
that mandate.
Seminars
Twenty-three seminars were held in 2012, attended
by leading scholars and policymakers to discuss a
wide range of issues. In addition, two brown bag
lunch seminars were held at ADBI, which provided a
platform for presenting preliminary research ideas and
findings to solicit comments from ADBI staff. Two
seminars are highlighted below.
Changing Myanmar: Challenges and Opportunities
discussed the recent changes, as well as the economic
development and opportunities for business in
Myanmar as the country transitions to a more open
and dynamic economy.
What Next for Doha and WTO? Guest speaker WTO
Deputy Director General Alejandro Jara acknowledged
that the WTO cannot address news rules that befit
a significantly changed trading system without first
concluding the Doha Development Agenda. Te WTO
must address a new agenda on investment rules, export
duties, and other regulatory issues.
Year in Review 2012
20
ADBIs Distinguished Speaker Seminar Series brings
eminent persons to ADBI to encourage debate
among policymakers, researchers, academics, think
tanks and other audiences interested in economic
development challenges in Asia and the Pacific. In
2012, 13 prominent scholars delivered seminars on
various subjects, including the following.
The Seven Global Distortions: Impact on Asia
Andrew Sheng, President
o f t h e Fu n g Gl o b a l
Institute, talked about the
emerging issues and policy
challenges of interest to
policymakers in the Asia
and Pacific economies. In
particular, he described
how the new normal is
not perfect markets, but
massive global distortions. The global distortions
aggravate social inequality and instability. Sheng
highlighted the need to move out of short-termism,
toward long-term sustainability and public good.
Eurozone Sovereign Debt Crisis: Current
and Historical Perspectives
Gianni Toniolo, research professor of economics
and history, Duke University, North Carolina; and
Daniele Franco, managing director of Economics,
Research and International Relations of Banca
dItalia, spoke on the causes of the eurozone crisis
and possible solutions and policy responses. Toniolo
said that although historyin particular Germanys
recession in the 1930sis a guide in understanding
the sovereign debt crisis in Europe and US, there are
notable diferences. Franco said defcits are expected
to decline in the eurozone in 2013, and the fnancial
conditions in the eurozone will become more stable
than in Japan and the US. But problems remain,
such as a lack of enforcement authority of EU rules.
Greater economic coordination, correcting macro
imbalances, and enforcement of rules will help ensure
survival of the eurozone.
Demystifying the Chinese Economy
Justi n Yi fu Li n, chi ef
economist and senior vice
president of the World
Bank, challenged many
tenets of conventi onal
n e o c l a s s i c a l t h e o r y
and showed how na ve
applications of many of its
principles had catastrophic
consequences for many
transition economies. He provided a framework to
analyze the causes behind those dramatic changes
and drew lessons for other developing countries from
the Chinese experience of rapid economic rise in the
last three decades.
Will the Euro Celebrate Its 14th Birthday?
The Present EU Economic Situation with a
Special Reference to Italy
Carlo Filippini, professor
of economi cs, Bocconi
University, Milano, spoke
about the economic and
fi scal cri si s i n Europe,
with particular reference
to Italy. He said that the
disappearance of the euro
is unl ikel y because the
economic cost would be
Distinguished Speaker Seminars
Research
21
too high. Deeper integration and a full fscal union
will be the final outcome for the EU. Although
the prevailing solution is a combination of fiscal
restraint and a more rigid stability and growth pact,
Filippini stressed that structural reforms are required
in many countries including Italy. After many years
of low productivity and a high debt to GDP ratio,
Italy is pursuing a difcult path of austerity, growth,
and equity.
Flexible Exchange Rates for a Stable World
Economy
Joseph Gagnon, a senior
f el l ow at t he Pet erson
Institute for International
Ec onomi c s , s poke on
flexible exchange rates for
a stable global economy.
Gagnon argued that using
monetary policy to fight
exchange rate volatility,
i ncl udi ng t hrough t he
adoption of a fixed exchange rate regime, leads
to greater volatility of employment, output, and
infation. In other words, the cure for exchange rate
volatility can be worse than the disease.
Carry Trades, Interest Differentials, and
International Monetary Reform
Ro n a l d Mc Ki n n o n ,
the Wi l l i am D. Eberl e
Professor of International
Economi cs at Stanford
University, said that the
US Fe de r a l Re s e r ves
reduction of the interest
r at e on f eder al f unds
t o v i r t u a l l y z e r o i n
December 2008 (followed
by major European central banks) exacerbated
the wide interest rate differentials with emerging
markets and provoked global monetary instability
by inducing massive hot money outflows into Asia
and Latin America. Speculative money fooding into
emerging markets by carry traders caused local
currencies to be overvalued. To prevent currencies
from appreciating, emerging market central banks
intervened to buy dollars. With persistent carry
trades, however, emerging market central banks were
forced to keep intervening to prevent unlimited
appreciation. Te sharp buildup of emerging market
foreign exchange reserves, too big to be fully offset
by domestic monetary sterilization, resulted in
the loss of monetary control in emerging markets
and led to inflation that was generally higher than
that in developed market economies. Reform must
focus on international monetary harmonization
that limits interest rate diferentials, while accepting
the need for exchange rate buffers, such as capital
controls. However, if interest rate differentials are
too wide, capital controls will fail. Mature industrial
economies, led by the US, would have to abandon
the current monetary policies which set interest rates
near zero.
Lessons for the Eurozone from Asia
Ol a r n Ch a i p r a v a t ,
a dv i s or t o t he Pr i me
Mi ni s t er of Thai l and,
Pres i dent of Thai l and
Trade Representative, and
a former deputy pri me
mi ni s t er of Thai l and,
said that in analyzing the
European financial crisis,
Asias experience with the
1997 Asian financial crisis serves as a useful point of
reference. Thailand, along with Indonesia and the
Republic of Korea, accepted an IMF-imposed austerity
program and did badly as compared to Malaysia, which
rejected the IMFs prescription. The experience of
crisis-hit Asian economies led to a change in thinking
about the productiveness of straight austerity
programs. The relaxation of austerity stances and
implementation of pro-growth policies in combination
helped Asia recover from its financial crisis. Drawing
from the Asian experience, the same IMF pain
for gain austerity solution for Greece cannot work
Year in Review 2012
22
because Greece does not have a currency to devalue. To
resolve the eurozone crisis, not only must all eurozone
countries pursue pro-growth policies, Asia and the
rest of the world, including the PRC and Japan, must
switch from austerity, or anti-inflationary stances, to
pro-growth policies.
The New Continentalism: Energy and
Twenty-First Century Eurasian Geopolitics
Kent Calder, director of
the Edwin O. Reischauer
Center for East Asia Studies
at SAIS and director of the
Japan Studies Program at
SAIS, argued that a new
transnational confguration
is emerging in continental
Asia, driven by economic
gr owt h, r i s i ng ener gy
demand, and the erosion of longstanding geopolitical
divisions over the past generation. What Calder
calls the New Silk Roadwith a strengthening
mul ti faceted rel ati onshi p between Northeast
Asia, on the one hand, and the Middle East and
South and Central Asia on the other at its core
could emerge as one of the worlds most signifcant
multilateral configurations, although likely in
a much less formalized fashion than traditional
regional arrangements. Te New Silk Road could be
important in cushioning the impact of geopolitical
change in Central Asia, with the role of multilateral
devel opment i nsti tuti ons hi ghl y rel evant i n
determining the ultimate developmental path of the
New Silk Road nations.
Toward a New
Capitalism
Mu h a mma d Yu n u s ,
chairman of the Yunus
Ce n t r e , f o u n d e r o f
Gr a me e n Ba n k , a n d
Nobel Peace Prize winner,
argued that poverty is not
created by the poor, but
rather it is imposed on the poor by a faulty system.
Therefore, to eradicate poverty, the faulty system
and the institutions that make up the system have
to be fixed. Some of the most important of these
institutions are those ofering fnance. Tis is because
ensuring that the poor have access to finance is at
the heart of eradicating poverty. However, banks
operate in a paradoxical way, lending money to
people who already have a lot of money, but not to
people who do not have money, believing that poor
people have limited means to repay loans. It is the
deep conviction that this conceptual framework for
finance is wrong which led to the founding of the
Grameen Bank in Bangladesh. The establishment
of the microfinance institution demonstrated that
the scope of business could be widened to combine
two kinds of businessesone for making money
and another for solving problems. Tese businesses,
called social businesses, are self-fueling engines
whereby activities become self-sustaining. Although
charities can be effective on occasions, they face
limits as charitable funds need not readily replenish
themselves. It is within the peoples power to make
unemployment and poverty obsolete features from
the past. However, to succeed, it is necessary to
redesign the economic system in a way that has yet
been thought of before and social businesses may be
one step in that direction.
Old Issues and New Frontiers: Non-
tariff Measures in
International Trade
Pa t r i c k L o w, c h i e f
economist at the World
Trade Organization, said
tariffs have become less
important in international
t r ade whi l e at t ent i on
is shifting to non-tariff
measures (NTMs). These
measures raise complex challenges for international
trade and trade policy cooperation. Tese challenges
arise from identifcation and measurement problems,
the scope for using public policy interventions
Research
23
as a means of unduly restricting trade, and the
administration of NTMs. In addition, emerging
public policy concerns in new areas are likely to lead
to new families of NTMs.
The Rise of Asia and
the New World Order
Da l e W. J or g e ns e n,
t he Samual W. Morri s
University Professor at
Harvard University, said
that the global economy is
undergoing a fundamental
change. Despite concerns
ov e r s l owi ng g r owt h
in the PRC, India, and Japan, and the possible
dissolution of the eurozone, global economic growth
is accelerating. How can this paradox be explained?
If the global economy is shifting toward the more
rapidly growing economies, then the worlds growth
rate would shift toward the growth rates of the more
rapidly growing economies. Tus, even if the growth
rates of the PRC and India were to slow, global
growth, which is considerably lower than that of
both countries, would accelerate. The growth rate
would lead to a new world order associated with
more rapidly growing countries such as the PRC
and India, which are going to have a larger share of
the global economy. Te PRC overtook Japan as the
worlds second-largest economy in 2010. However,
the World Bank noted that this milestone had been
reached in 2005 in current purchasing price parity
(PPP). In terms of PPP, India will overtake Japan in
2012 and the PRC will overtake the US in 2017. Te
US has been the worlds leading economy for more
than a century. Te new world order will look very
diferent in 2020. Asia will boast three of the worlds
four biggest economies. The largest economies in
descending order will be the PRC, US, India, Japan,
Russia, Germany, Brazil and the United Kingdom.
The Road to Fiscal Union in the Eurozone:
Fantasy or Reality
Paola Subacchi, research
director of international
economics at Chatham
House, argued that fiscal
uni on, and event ual l y
pol i t i cal uni on, i s t he
onl y way f or war d f or
Europes Economic and
Monetary Union (EMU).
Di v e r g e nc e s i n s i z e ,
development, and institutions present the EMU
with the dilemma of policy coordination in which
countries need to bind themselves by a political
framework in order to respect their commitments
and do not have a clear incentive to defect. As it
is impossible to simultaneously achieve economic
integration, the nation-state, and political democracy,
the citizens of the eurozone will need to choose
which two of these three goals they want to achieve
and maintain.
T
he Capaci t y Bui l di ng and
Training (CBT) Department
s t r i ve s t o pr omot e s ound
devel opment management through
enhancing developing member countries
(DMC) senior and mid-level officials
understanding of important development
issues, identifying policies and measures
to address these issues, assisting them to
implement these policies and measures
effectively, and providing venues for
both formal and informal dialogues
and communi cat i on among DMC
government ofcials.
All CBT programs follow one of three
formats: policy dialogue, course-based
training, and e-learning. Policy dialogues
examine the implications and potential
impacts of contemporary policy issues
on Asian developing economies and seek
to expand understanding of possible
responses among pol i cymakers and
other important stakeholders. Course-
based trai ni ng provi des systemati c
practical knowledge and skills aimed to
improve the capacity of policymakers in
policy selection, design, execution, and
assessment. E-learning courses use the
internet as a learning tool to maximize
the participation of government ofcials
and practitioners in capacity development
initiatives.
To ensure quality, relevance, and impact
of CBT activities, every CBT program
focuses on one of ADBIs three priority
themes: inclusive and sustainable growth,
regional cooperation and integration, and
governance for policies and institutions.
For each act i vi t y, par t i ci pant s are
caref ul l y sel ected to maxi mi ze the
effectiveness of the program. Special
Capacity Building and Training
Capacity Building and Training
25
attention is paid to the need for geographic, gender,
and background balance and diversity as well as each
participants relevant government work experience
and the participants ability to use the content of the
training program to train othersthereby transferring
the knowledge to a wider audience. All programs are
delivered in English, ADBs ofcial language.
In 2012, 23 policy dialogues, six course-based training
programs, and one e-learning course were conducted:
18 on inclusive and sustainable growth, eight on
regional cooperation and integration, and four on
governance for policies and institutions. From DMCs,
more than 7,500 participants attended the e-learning
course Microfinance: Training the Trainers, while
1,471 participants attended CBT courses/workshops
and policy dialogues in person. Selected programs are
briefy described below.
Inclusive and Sustainable Growth
Eighteen activities were conducted under the theme
of inclusive and sustainable growth. They addressed
capacity building needs related to labor migration
in Asia and the Pacific region, managing climate
change issues and promoting sustainable economic
development, fnancial inclusion, intelligent transport
systems, river basin management, trade pol icy,
microfinance, skills development, sanitation, and
foreign investment fows.
The Cambodia, Lao PDR, Myanmar, and Viet Nam
(CLMV) program is a direct result of collaboration
between ADBIs two departments: CBT and Research.
ADBI is working with CLMV governments on a series
of policy-oriented research activities and capacity
building programs aimed at assisting these countries
to narrow the development gap with other ASEAN
countries. In partnership with the Mekong Institute
of Khon Kaen, Tailand, ADBI conducted the frst of
four training programs in December 2012. The first
CLMV training program examined opportunities and
approaches to strengthening seed policy and improving
seed industry efciency through lectures, case studies,
feld visits, and group discussions. Over 40 government
officials from CLMV countries attended the training
program, including 11 from Myanmar.
ADBs Economics and Research Department and ADBI conducted a workshop in Kunming, PRC, to explore effective
government poverty-reduction policies.
Year in Review 2012
26
Tackling climate change and accelerating green growth
is important to achieving sustainable development. At
a stakeholder forum on Climate Change and Green
Asia, senior officials from the emerging economies
of Asi a exami ned key i ssues and chal l enges i n
reducing greenhouse gas emissions without adversely
affecting economic growth. Through country reports,
presentations, and discussions, this forum assessed
the scope and merit of current pledges and their
progress, and analyzed the interplay of technological,
institutional, market, and management factors in the
dynamics of low-carbon green growth. The findings
will be included in the ADB and ADBI fagship study
Climate Change and Green Asia.
A policy dialogue on the key findings of the ADB
and ADBI book, Public Policies and Practices for
Low-Carbon Green Growth, brought together senior
officials from large carbon-emitting economies of
Asia to discuss key recommendations on renewable
energy and energy efciency policy options as a way to
accelerate low-carbon green growth strategies, including
technology transfer issues and financing options.
Strengthening national innovation systems, including
enabling market conditions and intellectual property
regimes, is key to promoting indigenous technologies.
More than 300 participants joined the eighth program
of the Microfnance Training of Trainers, a distance
learning course that ran from December 2011 to
May 2012. The course aimed to (i) strengthen the
institutional capacity of microfinance in the Asia
and Pacific region by making high-quality training
accessi bl e to a l arge number of pol i cymakers,
professionals, and practitioners; and (ii) increase
the number and country coverage of accredited
microfinance trainers in the Asia and Pacific region
and around the world. In the 20112012 course, 199
participantsa record numberreceived accreditation
as certified microfinance trainers. Since 2005, a total
of 892 participants from 55 countries have been
accredited as certified trainers through the course
implemented in collaboration with the World Banks
Tokyo Development Learning Center.
Regional Cooperation and
Integration
The high-level policy dialogue, 12th OECDADBI
Roundtable on Capital Market Reform in Asia,
attracted more than 75 participants who discussed
the global financial situation and regulatory reforms,
the integration of Asian financial markets, the
yuans internationalization, the supervision and risk
management of Asian banks, and other related issues.
At the roundtable Dr. Kiyohiko Nishimura, a deputy
governor of the Bank of Japan, called for cooperation
between Japan and the PRC on introducing direct
trading between the yen and the yuan to reduce
transaction costs and exchange rate risk, and to
enhance the utilization of the yen and yuan in bilateral
trade and investment. ADBI and OECD plan to
publish the proceedings jointly.
The policy dialogue, Ways Forward for Corridor-
Based Transport Facilitation Agreements in the
CAREC Region, promoted knowledge sharing on
approaches to improving transport facilitation among
the countries participating in the Central Asia Regional
Economic Cooperation (CAREC) program. CAREC
is developing six international transport and trade
corridors linking the programs ten participating
countries with each other and linking the region
to other markets of Eurasia. The program plans to
complete construction or improvement of about 8,380
km of roads and 5,300 km of railway lines by 2017.
Improvements in soft infrastructure such as transport
facilitation agreements are required to ensure this large
body of investment delivers the highest returns to the
region. Te dialogue, organized in collaboration with
ADBs Central and West Asia Department, facilitated
SouthSouth knowledge exchange among 25 transport
and customs offi ci al s from CAREC countri es,
exposed officials to transport facilitation agreement
development and implementation in other regions,
and considered feasible approaches to improving cross-
border transport of goods and people in Central and
West Asia.
Capacity Building and Training
27
Governance for Policies and
Institutions
About 20 gover nment of f i ci al s i n char ge of
microfinance and banking regulations from countries
in the Asia and Pacific region attended the course-
based training program, Best Practice Regulatory
Principles and Proportionate Regulation Supporting
Micro and Small and Medium-Sized Enterprises
Access to Finance. Experts from ADB HQ, ADBI,
banks, and the Australian Treasury discussed regulatory
initiatives and a proportionate regulation framework
needed to support micro, small and medium-sized
enterprise finance. Participants also shared their
country experiences and conducted case analysis and
presentations at the end of the training workshop. Te
summary report of the workshop was presented at the
Asia-Pacifc Economic Cooperation (APEC) Financial
Inclusion Forum in June in Shanghai.
ADBI, the Japan Fair Trade Commission, and the
Malaysia Competition Commission organized two
meetings on competition law and policy. The 7th
East Asia Conference on Competition Law and
Policy focused on cartel practices, such as price-fxing,
bid-rigging, market sharing, and output controls.
Government officials shared their experiences in
identifying, regulating, and punishing these anti-
competition behaviors and mechanisms. At the
8th East Asia Top Level Officials Meeting on
Competition Policy, recent progress in regulations
and institution building in East Asian countries were
discussed. All participants agreed to conduct an annual
survey on the institutional development of competition
and enforcement policies and to share the survey results
at the following annual meeting.
Since 2009, ADBI, the APEC Business Advisory
Council, and the Asia-Pacifc Finance and Development
Center have organized policy dialogues on financial
inclusion. More than 80 participants including relevant
government officials, microfinance practitioners,
researchers, and representatives of business and civil
society organizations joined the Asia-Pacifc Forum on
Financial Inclusion: Approaches, Regulations and
Cross-Border Issues. Te policy dialogue focused on
fve areas: (i) approaches to promote fnancial literacy,
(ii) fnancial identity, (iii) micro-fnance regulation, (iv)
consumer protection, and (v) facilitating cross-border
microfnance.
CBT Director Dr. Yuqing Xing (left) instructs participants at
an ADBI workshop on micro, small and medium enterprise
QDQFLQJ
Year in Review 2012
28
The 2012 Developing Asia Journalism Awards
ADBI established the Developing Asia Journalism Awards (DAJA) in 2004 to recognize and promote excellence
in reporting by journalists covering development trends and issues in the Asia and Pacific region. Each
year, hundreds of journalists submit their written work on a specific topic chosen by ADBI. The theme for
DAJA 2012 was Green Growth or Growth Versus Green. Over 150 articles highlighting the opportunities,
challenges, and solutions being uncovered across the Asia and the Pacifcas the region seeks a path to green
and sustainable growthwere accepted.
Twenty-fve articles were selected by a panel of judges and their authors were invited to attend a workshop in
Tokyo and a feldtrip to Ishinomaki, which was heavily damaged by the Great East Japan Earthquake on 11
March 2011. Of the 25 journalists, fve were from the PRC, two from Bangladesh, three from Cambodia, two
from India, two from Indonesia, one from Lao PDR, one from Myanmar, two from Nepal, two from Pakistan,
three from the Philippines, one from the Solomon Islands, and one from Tajikistan.
Te workshop highlighted key environmental challenges and opportunities facing the Asia and Pacifc region.
Selected journalists introduced their articles and approaches to environmental issues in their respective home
countries. Topics discussed included the science of climate change, the impact of climate change on Asia,
responses to climate change by governments, communities, and businesses, and information resources on
climate change. Te feld trip to Ishinomaki focused on the citys recovery eforts and the environmental impact
of the disaster. An awards ceremony at ADBI concluded the event.
7ZHQW\YHMRXUQDOLVWVIURPWKH$VLDDQG3DFLFUHJLRQSDUWLFLSDWHGLQWKH'$-$)RUXPKHOGDW$'%,
Capacity Building and Training
29
&OLPDWH&KDQJHLQ$VLDDQGWKH3DFLF+RZ&DQ&RXQWULHV$GDSW"
Climate change is widely regarded
as one of most serious challenges
the developing countries of Asia
face, and adapting to it is an urgent
requirement for the most vulnerable
sectors. Te Workshop on Agriculture
Adaptations to Climate Change,
organized in collaboration with the
Asian Productivity Organization and
the Thailand Productivity Centre,
examined the key risks posed by
climate change on agriculture and
the actions that policymakers and
planners need to take to address
these risks.
Over 30 senior officials attached to agriculture, environment, and finance ministries from 20 economies
participated in the workshop in Bangkok, Tailand. Participants shared practical experiences and explored ways
to more efectively mainstream adaptation concerns into agricultural development planning. Te program had
six thematic sessions covering the following topics and included group discussions and a feld visit.
Climate change challenges, risks, and planning tools
Framework conditions for integrating climate change adaptation into sectoral planning
Successful adaptation strategies and policies in vulnerable areas
Action plan for policymakers and planners to reduce risk impacts
Mainstreaming climate change adaptation into sectoral planning
The workshop provided a venue for robust
discussions among delegates and highlighted
practical experiences as well as creative thinking,
emphasizing the fact that the Asia and Pacific
region needs immediate measuresstructural
and non-structuralto adapt to climate change
risks. Te participants, through facilitated group
discussions, devised adaptation roadmaps that
need to be integrated in their sectoral planning
in a phased manner. They also acknowledged
the immediate need to link existing policies on
climate risk with others such as drought and
disaster management, structural adjustments,
insurance schemes, and subsidies for better
targeted and regionally coordinated actions.
6HQLRURIFLDOVIURPHFRQRPLHVSDUWLFLSDWHGLQWKH:RUNVKRSRQ$JULFXOWXUH
Adaptations to Climate Change held in Bangkok, Thailand.
Outreach
A
DBI continued efforts to raise
the profile of the institute and
to ensure that its outputs are
disseminated as widely as possible.
ADBI wa s r a nke d t he 10t h be s t
government-affiliated think tank in the
world in the 2011 Global Go To Tink
Tanks Report. Te report is based on an
international survey of more than 1,500
scholars, public and private donors,
policymakers, and journalists from 120
countries.
ADBI continued to augment its outreach
efforts to reach its target audiences of
academics, policymakers, think tanks, the
media, and the private sector.
The institute made use of the media in
Japan and globally to highlight ADBIs
role and activities, particularly through
the Dean as ADBIs chief spokesperson
(see ADBI in the News).
Participating in external events is another
effective way to promote ADBIs work
in the region and internationally. By the
end of the year, the Dean had spoken
by invitation at 51 external events, and
ADBI staff had been invited to speak at
many other conferences and seminars.
For example, 11 ADBI experts delivered
lectures in a course titled Asian Economic
Development and Integration at the
School of International and Public Policy,
Hitotsubashi University (AprilJuly 2012),
and at the Graduate School of Public
Policy, University of Tokyo (October
2012January 2013).
Outreach
31
ADBI in the News
During 2012, ADBI activities were widely reported in the
global media, including Bloomberg News, Financial Times,
Reuters, and South China Morning Post, among others.
Taking advantage of its location in central Tokyo, ADBI has
ensured that its work was covered in the Japanese media,
including Asahi Shimbun, Japan Times, Kyodo, Mainichi
Shimbun, and Te Nikkei.
As ADBIs chief spokesperson, Dean Masahiro Kawai was
interviewed or quoted in numerous international and regional media including Asia News Network, Bloomberg
News, Business Times, Central Banking Journal, Chusun Online, Emerging Markets, Te Nation, Philippine
Daily Inquirer, Phnom Penh Post, and Reuters.
ADBI Deputy Dean Jae-ha Park was interviewed or quoted in the Bangkok Post, Korea Times, Te Nation, and
Tai News Service.
Research Director Ganeshan Wignaraja was interviewed or quoted in Latin American media including
Aguasdigital.com, El Norte De Castilla.es, Ideal.es, Pysnnoticias, and Que!
CBT Director Yuqing Xing was interviewed or quoted in Bloomberg News, China Daily, Detroit Free Press,
Japan Times, Shanghai Daily, and Xinhua News.
The ADB, ADBI, and Inter-American Development Bank book, Shaping the Future of the Asia and the
Pacifc-Latin America and the Caribbean Relationship, was reviewed by Foreign Afairs magazine. And the
volume, Capital Market Reform in Asia, edited by Dean Masahiro Kawai and Andrew Sheng, was reviewed by
Te Hindu.
Business Times, Japan Times, and Kyodo News published articles on the ADBI seminar, Changing Myanmar:
Challenges and Opportunities.
How the iPhone Widens the United States Trade Defcit
with the Peoples Republic of China, a 2010 working paper
by CBT Director Yuqing Xing and Neal Detert, continued
to receive wide media coverage, including in the Calgary
Sun, Financial Post, New York Times, South China Morning
Post, and Wall Street Journal.
Senior Consultant for Research Peter Morgan appeared on
NHK World to discuss the outlook for the global economy.
Year in Review 2012
32
Website
ADBI.org is the key dissemination tool for ADBIs
knowl e dge pr oduc t s and unde r pi ns ADBI s
communications strategy. Website traffic remains
steady as ADBI.org is regularly updated with new
research publications, event announcements, and
CBT workshop papers and presentations. Authors
are informed when their papers and books are posted
online and encouraged to share this information with
their colleagues and networks.
For the year 2012, the average number of downloads
from ADBIs website was about 191,282 per month, a
95.28% increase over the average in 2011 when 1.27
million documents were downloaded from the site
over the course of the year. Tis indicates the growing
extent to which visitors to the ADBI website fnd the
information there useful.
The most popular publication in 2012 was the book
Infrastructure for a Seamless Asia, a position it has
held since its publication in 2009. A total of 72,000
copies were downloaded during the year. A new book,
Shaping the Future of the Asia and the Pacifc-Latin
America and the Caribbean Relationship, was the
second most downloaded book during the year, with
40,000 downloads. The most downloaded working
paper was Asias Wicked Environmental Problems,
by Stephen Howes and Paul Wyrwoll, with 19,000
downloads.
Further evidence of the growth of a community of
scholars and policymakers interested in the work
of ADBI comes from the number of subscribers to
e-notification, a service that notifies subscribers of
additions to the ADBI website. From 6,681 at the end
of 2010, the subscriber base soared to 15,431 by 31
December 2012, an increase of 139% in 2 years.
Other Electronic Media
In January 2012, ADBI launched the blog Asia
Pathways. It publishes short original contributions
on economic and development issues in the Asia and
Pacifc region. For the year, 50 articles were posted to
Asia Pathways.
ADBI continued to strengthen its presence on various
social media sites, attracting significant audiences to
the ADBI accounts at Twitter, Facebook, and YouTube.
In 2012, ADBI launched the ADBI interview series,
consisting of short video interviews with ADBI staff
and visiting scholars. Presentations at distinguished
speaker seminars are videotaped and posted on the
ADBI YouTube channel.
In addition to making ADBI materials as freely
available as possible from the ADBI website, ADBI
makes its working papers and other research materials
available to electronic networks of analysts and
scholars. ADBI has accounts at Research Papers in
Economics (RePEc), Academia, the Social Science
Research Network (SSRN), and Scribd. Newl y
published materials are automatically deposited in these
databases, thereby raising the profle of ADBIs work in
communities of economists and other researchers.
Te attached table on page 36 lists ADBIs initiatives in
social media and research databases during 2012.
ADBIs daily e-newsletter of development news
(e-newsline) broke through the 5,000 subscriber level
during the year, reaching 5,321 as of the end of 2012,
an increase of about 30% over two years. This daily
service provides concise summaries of stories in the
English language press from across the region, enabling
subscribers to keep abreast with events in countries that
may not be their primary area of specialization. No
other news service ofers the same breadth of coverage.
A subscription is free from ADBI.org. All e-newsline
stories are archived on the ADBI website.
Outreach
33
Number of Downloads, 2012
201,006
246,693
264,196
207,091
165,846
194,073
177,204
176,747
92,982
Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan
0
50,000
100,000
150,000
200,000
250,000
300,000
188,939 190,253 190,355
E-notifcation Subscribers, 2012
Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan
6,812
7,103
7,478
7,794
8,065
8,340
8,587
8,812
9,075
9,590
10,015
6,739
e-Notifcation
10,716
11,179
12,118
13,201
3,764
14,202
15,119
15,431
10,268
10,000
11,000
12,000
13,000
14,000
15,000
16,000
11,612
12,646
14,696
E-newsline Subscribers, 2012
Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan
4,600
4,700
4,800
4,900
5,000
5,100
5,200
5,300
5,400
e-Newsline
4,686
4,810
4,873
4,993
5,083
5,213
5,276
5,321
4,631
4,747
4,939
5,139
Year in Review 2012
34
Working Papers
ADBI uploaded 60 working papers during the year,
bringing the total number on the website to 400 by the
end of 2012 (Appendix 5). PDF fles of ADBI working
papers are available for free on the ADBI website,
adding to the value of the series for researchers on
economic development in Asia and the Pacifc region.
Te papers are also disseminated via networks including
RePEc and the SSRN databases, and within ADB using
ADB Today and ADBs websites and journals.
Books
ADBI published nine books in 2012, compared
with five in 2011. The books were: Infrastructure
for Asian Connectivity, Monetary and Currency
Policy Management in Asia, and Implications of the
Global Financial Crisis for Financial Reform and
Regulation in Asia (all with Edward Elgar); Climate
Change in Asia and the Pacifc: How Can Countries
Adapt? and Capital Market Reform in Asia: Towards
Developed and Integrated Markets in Times of
Change (both with Sage Publications); The Global
Financial Crisis and Asia (with Oxford University
Press); Shaping the Future of the Asia and the Pacifc-
Latin America and the Caribbean Relationship (with
ADB and the Inter-American Development Bank);
Services Trade Approaches for the 21st Century
(with the Pacifc Economic Cooperation Council); and
Service Sector Reforms Asia-Pacifc Perspectives (with
ARTNeT secretariat).
It also published four highlights books to promote
larger works.
ADBI held five book dissemination events in 2012.
At the ADB Annual Meeting in May, ADBI launched
Shaping the Future of the Asia and the Pacific-
Latin America and the Caribbean Relationship,
ADBI Dean Masahiro Kawai and David Mayes, professor at the University of Auckland, and Hyouk-Se Kwon, the Governor of
the Korean Financial Supervisory Service, launch ADBIs book, Implications of the Global Financial Crisis for Financial Reform
and Regulation in Asia.
Outreach
35
and three highlights books: Policies and Practices
for Low-Carbon Green Growth in Asia, ASEAN
2030: Toward a Borderless Economic Community,
and ASEAN, the Peoples Republic of China and
India: The Great Transformation? A book launch
and policy dialogue seminar was held for the new
book, Implications of the Global Financial Crisis for
Financial Sector Reform and Regulation in Asia, in
April.
ADBI conti nues to seek the most appropri ate
publishing partners for its books based on a number of
criteria, including the copublishers marketing strength
and pricing policy. In 2012, ADBI co-published books
with Oxford University Press (UK) and Sage (India)
for the frst time.
In 2011, ADBI News continued to cover ADBI events
and placed a greater focus on longer, more analytical
and interpretive pieces. ADBI News was disseminated
at events held in ADBIs Tokyo ofce and is available
from the website.
Journal
Duri ng 2012, ADBI pl ayed an act i ve rol e i n
preparations to relaunch the ADB journal Asian
Development Review as an open access journal to
be published with MIT Press. ADBI will be a joint
sponsor of ADR with ADB, and Dean Masahiro Kawai
will serve as the journals new Editor.
Conferences, Seminars, and
Workshops
ADBIs research products were disseminated at
numerous conferences, seminars, and workshops
during 2012, many of which were organized with
other institutions. These events provided a platform
for debate on emerging development issues in the
region, and were aimed at soliciting comments on the
preliminary drafts of ADBIs research outputs as part of
ADBIs research quality-control and dissemination.
ADBI Engagement with Social Media and Research Databases in 2012
Twitter
Start date: 16 February 2010
URL: https://twitter.com/ADBInstitute
Number of followers as of 31 December 2012: 2,203
RePEc
Start date: 20 February 2010
URL: http://edirc.repec.org/data/adbinjp.html
Number of working paper downloads in 2012: 10,446
SSRN
Start date: 24 March 2010
URL: http://papers.ssrn.com/sol3/JELJOUR_Results.cfm?form_name=journalbrowse&journal_id=1559935
Number of downloads in 2012: 16,886
Scribd
Start date: 14 May 2010
URL: www.scribd.com/ADBInstitute
Number of reads in 2012: 83,089
Facebook
Start date: 1 October 2010
URL: www.facebook.com/pages/Asian-Development-Bank-Institute/122064391180645
Facebook likes in 2012: 2,024
RePEc = Research Papers in Economics, SSRN = Social Science Research Network.
Year in Review 2012
36
On 6 January 2012, ADBI launched Asia Pathways, a new blog. In its frst year, Asia Pathways published 50
posts on a range of important contemporary issues in Asia and the Pacifc. Te blog aims to provide original
thinking, presented in a readable and attractive form and to ofer ADBI staf and ADBIs extensive family of
contacts an opportunity to put fresh ideas into the public realm quickly and easily.
Although Asia Pathways focus is primarily on economic matters, the editorial platform encompasses a wide
range of development topics. Subjects covered in during 2012 included Myanmars exchange rate reforms, the
Trans-Pacifc Partnership, Singapores population conundrum, internationalization of the renminbi, and reform
of Japans electric power industry.
Authors have included Ambassador Tommy Koh, former president of the United Nations Conference on the
Law of the Sea and chair of the Earth Summit; Nobel laureate Muhammad Yunus, founder of Grameen Bank;
and Tarisa Watanagase, former governor of the Bank of Tailand.
ADBI staf have also made signifcant contributions to Asia Pathways, as have senior staf from ADB HQ. Te
blog is playing an increasingly important role in consolidating relationships between researchers at ADBI and
their counterparts at ADB HQ, who are often working in similar, and complementary, areas.
Asia Pathways is available at: www.asiapathways-adbi.org/. Interested readers can subscribe to an alert system
on the blog, providing them with immediate notice of new posts.
Coordination with Other ADB
Knowledge Departments
ADBs f our knowl edge depar t ment s ADBI ,
Economics and Research Department, Office of
Regional Economic Integration, and Regional and
Sustainable Development Departmenthave closely
coordinated their work programs to improve synergy in
their knowledge creation eforts. Examples of ADBIs
close collaboration with these departments include the
following major projects: Disaster Risk Management
in Asia and the Pacific, Strengthening ASEAN
Transitional Economies, Latin America and the
CaribbeanAsia Trade and Investment Links, and
Pacifc Island Economies 2030.
37
(as of 31 December 2012)
Senior Research
Fellow
Mr. Minquan Liu
Senior Capacity
Building Specialist
Mr. David Kruger
Legal Adviser &
Senior Administrative
Ofcer
Mr. Grant B. Stillman
Senior
Communications
Specialist
Mr. Alastair Dingwall
Mr. Tomokata Higuchi
(Placement by JWA)
Capacity Building
Specialist
Mr. Anbumozhi
Venkatachalam
Program Coordinator
Ms. Mihoko Saito
Program Coordinator
Ms. Kayo Tsuchiya
Advisory Council
Ms. Cinnamon Dornsife Mr. Masahisa Fujita
Mr. Sebastian Paust Mr. James Richard Gilling
Mr. Shri Ajit Kumar Seth Mr. Justin Yifu Lin
Mr. Changyong Rhee
Visiting Fellows/
Scholars/
Researchers
Mr. Masahiko
Aoki
(Japan)
Mr. Yasuyuki
Sawada
(Japan)
Director for
Administration,
Management &
Coordination
Mr. Yasuro Narita
Director for
Capacity Building
and Training
Mr. Yuqing Xing
Administrative
Ofcer
Mr. Tsuyoshi Hyokai
Assistant to Dean
Ms. Yumiko Hoshino
Accountant
Ms. Ai Miyamoto
Administrative
Coordinator
Ms. Yasue Nagai
Director for
Research
Mr. Ganeshan
Wignaraja
Dean and CEO
Mr. Masahiro Kawai
Deputy Dean for
special Activities
Mr. Jae-Ha Park
Senior Research
Fellow
(Vacant)
Research Fellow
(Vacant)
Research Fellow
Mr. Victor Pontines
Mr. Atsushi Masuda
(Placement by JBIC)
Capacity
Building Economist
Ms. Ha-Yan Lee
Special Adviser
to Dean
Mr. Giovanni
Capannelli
Senior
Consultant for
Research
Mr. Peter Morgan
Consultant for
Capacity Building
and Training
Mr. Muhammad
Cholifhani
Appendix 1: Organization Chart
38
Appendix 2: Deans and Advisory Council Members
Table A2.1: Deans, 1997 to Present
Dean Tenure Nationality
Masahiro Kawai January 2007 to Present Japan
Peter McCawley January 2003January 2007 Australia
Masaru Yoshitomi January 1999January 2003 Japan
Jesus P. Estanislao December 1997January 1999 Philippines
Table A2.2: Advisory Council Members, 1998 to Present
Regional Borrowing
Member Countries
Regional Non-Borrowing
Member Countries
Non-Regional
Non-Borrowing
Member Countries
ADB
20122014 Justin Yifu Lin
(PRC)
Masahisa Fujita
(Japan)
Cinnamon Dornsife
(US)
Changyong Rhee
Chief Economist
Ajit Kumar Seth
(India)
James Richard Gilling
(Australia)
Sebastian Paust
(Germany)
20102012 Li Yong
(PRC)
Masahisa Fujita
(Japan)
Cinnamon Dornsife
(US)
Changyong Rhee
Chief Economist
(joined in February 2011)
Sanjiv Misra
(India)
Stephen Howes
(Australia)
Eric Girardin
(France)
20082010 Gang Fan
(PRC)
Masahiko Aoki
(Japan)
Victor H. Frank, Jr.
(US)
Jong-Wha Lee
Chief Economist
K. M. Chandrasekhar
(India)
Andrew MacIntyre
(Australia)
Eric Girardin
(France)
20062008 Li Yong
(PRC)
Masahiko Aoki
(Japan)
Victor H. Frank, Jr.
(US)
Ifzal Ali
Chief Economist
Ajit K. Jain
(India)
Andrew Maclntyre
(Australia)
Eric Girardin
(France)
20042006 Li Yong
(PRC)
Masahiko Aoki
(Japan)
William P. Fuller
(US)
Ifzal Ali
Chief Economist
Corattiyil Ramachandran
(India)
Kanit Sangsupan
(Thailand)
Eric Girardin
(France)
20022004 Zhang Xiaoqiang
(PRC)
Yujiro Hayami
(Japan)
William P. Fuller
(US)
Ifzal Ali
Chief Economist
N. C. Saxena
(India)
Ronald Charles Duncan
(Australia)
Magnus Blomstrm
(Sweden)
20002002 Zhang Xiaoqiang
(PRC)
Yujiro Hayami
(Japan)
William P. Fuller
(US)
Arvind Panagariya
Chief Economist
Y. Venugopal Reddy
(India)
Ronald Charles Duncan
(Australia)
Magnus Blomstrm
(Sweden)
19982000 Justin Yifu Lin
(PRC)
Yonosuke Hara
(Japan)
Jefrey R. Shafer
(US)
Jungsoo Lee
Chief Economist
Chandi Chanmugam
(Sri Lanka)
Helen Hughes
(Australia)
Fabrizio Onida
(Italy)
39
Date Event Event Location
Major Conferences
1819 Jan
ADBIOECD Conference on Services Trade in Selected Sectors: Audiovisual
services, Higher Education, and Financial Services
Delhi
31 Jan Seventh LAEBA Annual Meeting Taking Stock of the LAC-Asia Relationship Washington, DC
12 Mar ADBINEAR Joint Conference Lessons from Japan: Is Japan Koreas Future? Seoul
14 Mar
ADBI-PRI Conference: Achieving Financial Stability-Lessons from the Eurozone Crisis for
Macroeconomic and Financial Stability
Tokyo
19 Mar LAC-ASIA: Opportunities and Challenges of a Long-Term Relationship Montevideo
2627 Mar
ADBI-RSIS Conference: The Evolving Global Architecture: From a Centralized
to a Decentralized System
Singapore
3031 Mar Climate Change and Green Asia Policy Conference Seoul
1516 May
Asian Development Review: Development Issues Conference 2012 Development Issues in
Asia 2012
Manila
4 Jun EU Responses to the European Sovereign Debt Crisis Tokyo
2930 Jun NBER Japan Project Meeting Tokyo
79 Oct Conference on Global Economic Cooperation: Views from G20 Countries Delhi
12 Oct The Eurozone Crisis and Its Implications for Asian Economies Tokyo
23 Oct Changing Pacifc Economy: Future Trends and Developments Tokyo
7 Nov The 2nd Asian Development Review Conference Manila
30 Nov
ADBI Annual Conference on Growth and Regional Cooperation and Integration
in Asia and the Pacifc in 2013 and Beyond
Tokyo
Workshops and Seminars
15 Jan
Fact-Finding Mission and Follow-up Meeting for the Strengthening ASEAN
Transitional Economies Study
Yangon
17 Jan ASEAN 2030 SEOM Meeting Siem Riep
1819 Jan
Fact-Finding Mission and Follow-up Meeting for the Strengthening ASEAN Transitional
Economies Study
Jakarta
1920 Jan Climate Change and Green Asia Book Discussion Forum Jakarta
56 Feb ASEAN 2030 Study High Level Task Force Meeting Bangkok
27 Feb
Role of Key Emerging EconomiesASEAN, PRC, and India for a Balanced, Sustainable, and
Resilient Asia
Tokyo
2729 Feb ASEAN 2030 Study AEM Retreat Phnom Penh
12 March Consultation Missions in Preparation of New CLMV Project Vientiane
Appendix 3: Research Events
40
Year in Review 2012
Date Event Event Location
57 March Consultation Missions in Preparation of New CLMV Project Phnom Penh
89 March ASEAN 2030 Highlights Finalization Meeting Bangkok
8 Mar Disaster Risk Management Brainstorming Meeting Tokyo
21 Mar
Role of Key Emerging EconomiesASEAN, PRC, and India for a Balanced,
Sustainable, and Resilient Asia Highlights Presentation
Tokyo
28 Mar
Seminar by Andrea Finicelli Current Account Benchmarks: Methodological
Advances and Some New Estimates
Tokyo
2631 Mar Consultation Missions in Preparation of New CLMV Project Myanmar
2 Apr ASEAN 2030 Study AEC Council Phnom Penh
16 Apr ADB (ERD)ADBI Joint Seminar on the Asian Development Outlook 2012 Tokyo
17 Apr Seminar by Hali J. Edison Research at the IMF: Relevance and Utilization an IEO Evaluation Tokyo
2325 Apr Consultation Missions in Preparation of New CLMV Project Hanoi
1 May Seminar by Rasmus Fatum Does Foreign Exchange Intervention Volume Matter? Tokyo
3 May ADB Annual Meeting: Climate Change and Green Asia Manila
5 May Asia Latin America: Forging a Long-Term Partnership Manila
14 May Seminar by Cyn-Young Park Asian Capital Market Integration: Theory and Practice Tokyo
22 May Seminar by Renu Kohli Indias Current Macroeconomic Issues Tokyo
56 Jun
Experts Meeting of the Thematic Area on Agricultural Productivity and Natural Resources
Management for the CLMV Project
Tokyo
5 Jun Changing Myanmar: Challenges and Opportunities Tokyo
6 Jun Seminar by Alejandro Jar What Next for Doha and WTO? Tokyo
18 Jun
Seminar by Professor Insukindro Foreign Portfolio Flows and Their
Implications for the Efectiveness of Indonesian Monetary Policy
Tokyo
2 Jul
Seminar by Douglas H. Brooks Importance of International Supply Chains to
the Performance of APEC Developing Economies
Tokyo
3 Jul
ADBIIDB Seminar: Shaping the Future of the Asia and the Pacifc Latin America and the
Caribbean Relationship
Tokyo
31 Aug Future of the World Trading System: Asian Perspectives Tokyo
27 Sep Seminar by Manmohan Parkash Infrastructure Development in South and Southeast Asia Tokyo
11 Oct EBRD Dissemination Seminar on Russian Diversifcation Tokyo
11 Oct The PRCs Thirst for Commodities and Impact on Latin America Tokyo
12 Oct The Eurozone Crisis and Its Implications for Asian Economies Tokyo
13 Oct Beyond Nimbyism: Towards Integrated Reforms for Financing Green Growth Tokyo
41
Appendix 3: Research Events
Date Event Event Location
13 Oct
Asia-LAC High Level Economic Policy Forum Asia-Latin America: New
Engines of Growth of the Global Economy?
Tokyo
16 Oct Seminar by Alejandro Jara: Latin America and Asia More Cooperation and Trade Tokyo
29 Oct Disaster Risk Management in Asia and Pacifc: Inception Meeting Tokyo
1 Nov Seminar by Pati Poblete The Ecological Footprint-Global and Asia Overview Tokyo
6 Dec Seminar on the Future of Asias Trade Agreements Beijing
11 Dec Seminar by El-hadj Bah Growth Constraints on Small Companies in Myanmar Tokyo
14 Dec
Seminar by Gregory Chin Renminbi Internationalization: Asian Interests, Motivations, and
Objectives
Tokyo
1718 Dec Connectivity in South and Southeast AsiaInception Meeting Manila
Distinguished Speaker Seminars
9 Feb Andrew Sheng The Seven Distortions of the Global Economy Tokyo
24 Feb
Daniele Franco and Gianni Toniolo Eurozone Sovereign Debt Crisis: Current and Historical
Perspectives
Tokyo
29 Feb Justin Lin Demystifying the Chinese Economy Tokyo
9 Apr Carlo Filippini Will the Euro Celebrate Its 14th Birthday? Tokyo
23 Apr Joseph Gagnon Flexible Exchange Rates for a Stable World Tokyo
7 May Ronald McKinnon Carry Trades, Interest Diferentials, and International Monetary Reform Tokyo
25 May Olarn Chaipravat The Future of Asia Tokyo
31 May Kent E. Calder The New Continentalism: Energy and Twenty-First Century Eurasian Geopolitics Tokyo
25 Jul
George Hara, Masaharu Okada, Muhammad Yunus, Shozaburo Jimi,
Yasuchika Hasegawa Symposium: Toward A New Capitalism
Tokyo
30 Aug Patrick Low Old Issues and New Frontiers: Managing Non-Tarif Measures Tokyo
25 Sep Dale W. Jorgenson The Rise of Asia and the New World Order Tokyo
26 Oct Nicolas Veron The Eurozone Crisis: Causes and Prospects Tokyo
14 Nov Paola Subacchi The Road to Fiscal Union in the Eurozone: Fantasy or Reality? Tokyo
Book Launches
27 Mar Monetary and Currency Policy Management in Asia Singapore
26 Apr Implications of Global Financial Crisis for Financial Sector Reform and Regulation in Asia Tokyo
5 May Shaping the Future of the Asia and the Pacifc Latin America and the Caribbean Relationship Manila
42
Number of Participants in Capacity Building and Training Activities, 2012
Date Course or Workshop
Total
Participants
Event Location
Inclusive and Sustainable Growth
1829 Jan
The 2nd ADBI-OECD Roundtable on Labor Migration in Asia: Managing Migration
to Support Inclusive and Sustainable Growth
71 Tokyo
1920 Jan Climate Change and Green Asia Book Discussion Forum 71 Jakarta
3031 Mar Climate Change and Green Asia Policy Conference 60 Seoul
DecApr 30 8th Microfnance Training of Trainers: A Blended Distance Learning Course 338 Tokyo
26 Apr
Book Launch and Policy Dialogue Seminar: Implications of Global Financial Crisis
for Financial Sector Reform and Regulation in Asia
12 Tokyo
79 May
The 3rd High-Level Policy Roundtable on International Investment Policies in Asia:
Responsibility and Sustainability
32 Shanghai
1618 May Production Networks and Trade Policy in Turbulent Times 43 Manila
56 Jun
CLMV Project Supporting Equitable Economic Development in ASEAN: Experts
Meeting of the Thematic Area: Agricultural
Productivity and Natural Resources Management
42 Tokyo
2527 Jun
Asia-Pacifc Forum on Financial Inclusion: Approaches, Regulations, and Cross-
Border Issues
45 Shanghai
1012 Jul High-Level Meeting: Towards Country-led Knowledge Hubs 344 Bali
2628 Sep
Sub-regional Workshop on Millennium Development Goals for Central and East
Asia
78 Almaty, Kazakhstan
1718 Oct
A Regional Policy Forum: Regulatory Environments to Promote Financial Inclusion
in Developing APEC and Other Regional Economies
25 Melbourne
1718 Oct Capacity Building Workshop on PPP Infrastructure Project Modeling 22 Singapore
2325 Oct Efective Policies and Experiences for Poverty Reduction in Asia 41 Kunming
29 Nov
7th NARBO IWRM Training Solutions to Water Sector Issues through IWRM: The
Mahaweli River Basin Experience
27 Sri Lanka
1923 Nov Workshop on Agricultural Adaptations to Climate Change 36 Bangkok
2730 Nov Developing Asia Journalism Awards 2012 25 Tokyo
1115 Dec
CLMV Project Training Program: Developing Viable Seed Industries in Cambodia,
Lao PDR, Myanmar, and Viet Nam
31 Khon Kaen, Thailand
Regional Cooperation and Integration
78 Feb OECDADBI 12th Roundtable on Capital Market Reform in Asia 75 Tokyo
21 May Renminbi Internationalization: Japan and the Peoples Republic of China 78 Beijing
Appendix 4: Capacity Building and Training Events
43
Appendix 4: Capacity Building and Training Events
Date Course or Workshop
Total
Participants
Event Location
23 Jul
Ways Forward for Corridor-Based Transport Facilitation Agreements in the CAREC
Region
25 Beijing
2426 Jul Managing the WTO Accession Process: Strategies, Challenges and Practices 26 Shanghai
1213 Sep
ADBIWorld Bank Roundtable on Regional Commodity Exchange Market
Integration in Asia
27 Tokyo
2526 Sep
International Conference on Production Networks, Value-added, and Trade
Statistics Reforms
20 Beijing
1 Oct Policy Dialogue ASEAN, the PRC, and India: The Great Transformation? 25 Manila
810 Oct Workshop on Sharing Asian Experiences: Promoting FDI Efectively 15 Singapore
Governance for Policies and Institutions
2124 Feb Public-Private Partnership Days 2012 200 Geneva
59 Mar
Implementing Best Practice Regulatory Principles and Proportionate Regulation to
Support MSME Access to Finance
24 Melbourne
23 May
The 8th East Asia Top Level Ofcials' Meeting on Competition Policy and the 7th
East Asia Conference on Competition Law and Policy
144 Kuala Lumpur
59 Nov PPP in Infrastructure Development Basics for Negotiation 20 Marseilles
44
Books
ADBI. 2012. ADBI: Year in Review 2011. Tokyo: ADBI
Anbumozhi, V., M. Breiling, S. Pathmararajah, V. Reddy. eds. 2012. Climate Change in Asia and the Pacifc: How Can
Countries Adapt? Tokyo and Delhi: ADBI and Sage.
Bhattacharyay, B., M. Kawai, and R. Nag. eds. 2012. Infrastructure for Asian Connectivity. Tokyo and Cheltenham, United
Kingdom: ADBI and Edward Elgar.
Kawai, M., M. Lamberte, and Y. C. Park. eds. 2012. Te Global Financial Crisis and Asia. Tokyo and Oxford: ADBI and
Oxford University Press.
Kawai, M., D. Mayes, and P. Morgan. eds. 2012. Implications of the Global Financial Crisis for Financial Reform and
Regulation in Asia. Tokyo and Cheltenham, United Kingdom: ADBI and Edward Elgar.
Kawai, M., P. Morgan, and S. Takagi. eds. 2012. Monetary and Currency Policy Management in Asia. Tokyo and
Cheltenham, United Kingdom: ADBI and Edward Elgar.
Kawai, M., and A. Sheng. eds. 2012. Capital Market Reform in Asia. Tokyo and Delhi: ADBI and Sage.
Working Papers
Andrew K. Rose
International Financial Integration and Crisis Intensity
Working Paper 341, January
Takashi Kihara
Efective Development Aid: Selectivity, Proliferation and Fragmentation, and the Growth Impact of Development
Assistance
Working Paper 342, January
Gregory Chin
Responding to the Global Financial Crisis: Te Evolution of Asian Regionalism and Economic Globalization
Working Paper 343, January
Amitav Acharya
Foundations of Collective Action in Asia: Teory and Practice of Regional Cooperation
Working Paper 344, February
Peter J. Morgan and Mario Lamberte
Strengthening Financial Infrastructure
Working Paper 345, February
Peter J. Morgan and Mario Lamberte
Regional and Global Monetary Cooperation
Working Paper 346, February
Ulrich Volz
Lessons of the European Crisis for Regional Monetary and Financial Integration in East Asia
Working Paper 347, February
Stephen Howes and Paul Wyrwoll
Asias Wicked Environmental Problems
Working Paper 348, February
Appendix 5: Selected ADBI Publications
45
Appendix 5: Selected ADBI Publications
Ben Shepherd and Gloria Pasadilla
Services as a New Engine of Growth for ASEAN, the Peoples Republic of China, and India
Working Paper 349, March
Kaliappa Kalirajan
Regional Cooperation towards Green Asia: Trade and Investment
Working Paper 350, April
Armando Barrientos
What is the Role of Social Pensions in Asia?
Working Paper 351, April
Qwanruedee Chotichanathawewong and Natapol Tongplew
Development Trajectories, Emission Profle, and Policy Actions: Tailand
Working Paper 352, April
Amlan Roy
Innovative Approaches to Managing Longevity Risk in Asia: Lessons from the West
Working Paper 353, April
Yeongkwan Song
Audiovisual Services in Korea: Market Development and Policies
Working Paper 354, April
Gillian Doyle
Audio-visual Services: International Trade and Cultural Policy
Working Paper 355, April
Abhijit Sen Gupta
Exchange Rate Coordination in Asia: Evidence using the Asian Currency Unit
Working Paper 356, April
Yuqing Xing
Te Peoples Republic of Chinas High-Tech Exports: Myth and Reality
Working Paper 357, April
Donghyun Park and Gemma Estrada
Developing Asias Pension Systems and Old-Age Income Support
Working Paper 358, April
Heinrich-Wilhelm Wyes and Michael Lewandowski
Narrowing the Gaps through Regional Cooperation Institutions and Governance Systems
Working Paper 359, May
Yuwei Hu
Growth of Asian Pension Assets: Implications for Financial and Capital Markets
Working Paper 360, May
Ganeshan Wignaraja
Engaging Small and Medium Enterprises in Production Networks: Firm-level Analysis of Five ASEAN Economies
Working Paper 361, June
46
Year in Review 2012
Stephen Grenville
Rethinking Capital Flows for Emerging East Asia
Working Paper 362, June
Chalongphob Sussangkarn
Prevention and Resolution of Foreign Exchange Crises in East Asia
Working Paper 363, June
Yung Chul Park and Charles Wyplosz
International Monetary Reform: A Critical Appraisal of Some Proposals
Working Paper 364, June
Ganeshan Wignaraja
Do Exporting Firms in the Peoples Republic of China Innovate?
Working Paper 365, July
Yongding Yu
Revisiting the Internationalization of the Yuan
Working Paper 366, July
Pek Koon Heng
ASEAN Integration in 2030: United States Perspectives
Working Paper 367, July
Kym Anderson and Anna Strutt
Agriculture and Food Security in Asia by 2030
Working Paper 368, July
Stephen Howes and Paul Wyrwoll
Climate Change Mitigation and Green Growth in Developing Asia
Working Paper 369, July
Stefan Collignon
Europes Debt Crisis, Coordination Failure, and International Efects
Working Paper 370, July
Jefrey D. Sachs and Shiv Someshwar
Green Growth and Equity in the Context of Climate Change: Some Considerations
Working Paper 371, July
Andrew F. Cooper
Te Group of Twenty: Input and Output Legitimacy, Reforms, and Agenda
Working Paper 372, August
Jos Antonio Ocampo and Daniel Titelman
Regional Monetary Cooperation in Latin America
Working Paper 373, August
Azad Singh Bali and Mukul G. Asher
Coordinating Healthcare and Pension Policies: An Exploratory Study
Working Paper 374, August
47
Appendix 5: Selected ADBI Publications
Giovanni Capannelli and See Seng Tan
Institutions for Asian Integration: Innovation and Reform
Working Paper 375, August
Masahiro Kawai and Peter J. Morgan
Japans Post-Triple-Disaster Growth Strategy
Working Paper 376, August

Masahiro Kawai and Peter J. Morgan
Central Banking for Financial Stability in Asia
Working Paper 377, August
Yung Chul Park and Shinji Takagi
Managing Capital Flows in an Economic Community: Te Case of ASEAN Capital Account Liberalization
Working Paper 378, August
Larry D. Wall
Central Banking for Financial Stability: Some Lessons from the Recent Instability in the United States and Euro Area
Working Paper 379, August
Fernando Prada
World Bank, Inter-American Development Bank, and Subregional Development Banks in Latin America: Dynamics of a
System of Multilateral Development Banks
Working Paper 380, September
Hiro Ito and Masahiro Kawai
New Measures of the Trilemma Hypothesis: Implications for Asia
Working Paper 381, September
Ganeshan Wignaraja, Dorothea Ramizo, and Luca Burmeister
Asia-Latin America Free Trade Agreements: An Instrument for Inter-Regional Liberalization and Integration?
Working Paper 382, September
Udaibir S. Das, Maria A. Oliva, and Takahiro Tsuda
Sovereign Risk: A Macro-Financial Perspective
Working Paper 383, October
Michael G. Plummer
Te Emerging Post-Doha Agenda and the New Regionalism in the Asia-Pacifc
Working Paper 384, October
Vikram Nehru
Te World Bank and the Asian Development Bank: Should Asia Have Both?
Working Paper 385, October
Victor Pontines and Reza Y. Siregar
How Should We Bank With Foreigners?An Empirical Assessment of Lending Behavior of International Banks to Six East
Asian Economies
Working Paper 386, October
48
Year in Review 2012
E. J. Wilson, K. Jayanthakumaran, and R. Verma
Demographics, Labor Mobility, and Productivity
Working Paper 387, October
Mun-Heng Toh
Internationalization of Tertiary Education Services in Singapore
Working Paper 388, October
Francisco Ceballos, Tatiana Didier, and Sergio L. Schmukler
Financial Globalization in Emerging Countries: Diversifcation vs. Ofshoring
Working Paper 389, October
Shinji Takagi
Establishing Monetary Union in the Gulf Cooperation Council: What Lessons for Regional Cooperation?
Working Paper 390, October
Tarisa Watanagase
Impact of Changes in the Global Financial Regulatory Landscape on Asian Emerging Markets
Working Paper 391, October
Viral V. Acharya
Te Dodd-Frank Act and Basel III: Intentions, Unintended Consequences, and Lessons for Emerging Markets
Working Paper 392, October
Hiro Ito and Ulrich Volz
Te Peoples Republic of China and Global Imbalances from a View of Sectorial Reforms
Working Paper 393, November
Barry Eichengreen
Regional Financial Arrangements and the International Monetary Fund
Working Paper 394, November
Hal Hill and Jayant Menon
Financial Safety Nets in Asia: Genesis, Evolution, Adequacy, and Way Forward
Working Paper 395, November
Joshua Aizenman, Minsoo Lee, and Donghyun Park
Te Relationship between Structural Change and Inequality: A Conceptual Overview with Special Reference to Developing
Asia
Working Paper 396, November
Masahiko Aoki
Historical Sources of Institutional Trajectories in Economic Development: China, Japan, and Korea Compared
Working Paper 397, November
Brahmanand Mohanty, Martin Scherfer, and Vikram Devatha
Lifestyle Choices and Societal Behavior Changes as Local Climate Strategy
Working Paper 398, November
Tomohiro Machikita and Yasushi Ueki
Impact of Production Linkages on Industrial Upgrading in ASEAN, the Peoples Republic of China, and India:
Organizational Evidence of a Global Supply Chain
Working Paper 399, November
49
Appendix 5: Selected ADBI Publications
Erica Clower and Hiro Ito
Te Persistence of Current Account Balances and its Determinants: Te Implications for Global Rebalancing
Working Paper 400, December
Other Books, Book Chapters, Articles in Refereed Journals
Anbumozhi, V. 2012. Enhancing Adaptive Capacity in the Asia Pacifc Region: Opportunities for Innovation and
Experimentation. In Climate Change in Asia and the Pacifc: How Can Countries Adapt? Edited by V. Anbumozhi et al.
Delhi: Sage.
. 2012. Framework Conditions for Integrating Climate Change Adaptation into Natural Resource Planning. In
Climate Change in Asia and the Pacifc: How Can Countries Adapt? Edited by V. Anbumozhi et al. Delhi: Sage.
Anbumozhi, V., and A. Patunuru. 2012. Nationally Appropriate Mitigation Actions and Financing the Green Growth.
Asian Journal of Environmental Policy and Governance. 21 (1). pp. 7081.
Anbumozhi, V. et al. 2012. Conclusions, Policy Implications, and the Way Forward. In Climate Change in Asia and the
Pacifc: How Countries Can Adapt? Edited by V. Anbumozhi et al. Delhi: Sage.
. 2012. Monitoring Vulnerability and Adaptation Planning for Food Security. In Climate Change in Asia and the
Pacifc: How Countries Can Adapt? Edited by V. Anbumozhi et al. Delhi: Sage.
Benassy-Quere, A., H. Fan, M. Kawai, T.J. Kim, Y.C. Park, J. Pisani-Ferry, D. Vines, and Y. Yongding. 2012. Dont Let
the Eurozone Crisis Go East. La lettre du CEPII. No. 318. Paris: Centre dEtudes Prospectives et dInformations
Internationales.
Bhattacharyay, B. 2012. Estimating Demand for Infrastructure, 20102020. In Infrastructure for Asian Connectivity. Edited
by B. Bhattacharyay, M. Kawai, and R.M. Nag. Tokyo and Cheltenham, UK: ADBI and Edward Elgar.
. 2012. Modes of International Financial Integration: Financing Infrastructure. In Infrastructure for Asian
Connectivity. Edited by B. Bhattacharyay, M. Kawai, and R.M. Nag. Tokyo and Cheltenham, UK: ADBI and Edward
Elgar.
Bhattacharyay, B., M. Kawai, and R.M. Nag. 2012. Introduction. In Infrastructure for Asian Connectivity. Edited by B.
Bhattacharyay, M. Kawai, and R.M. Nag. Tokyo and Cheltenham, UK: ADBI and Edward Elgar.
Burmeister, L., D. Ramizo and G. Wignaraja. 2012. Asia and the Pacifc-LAC FTAs: An Assessment. In Shaping the Future
of Asia and the Pacifc-Latin America and the Caribbean Relationship. Tokyo and Washington, DC: Asian Development
Bank and Inter American Development Bank.
Cavoli, T., V. Pontines, and R. Rajan. 2012. Managed Floating by Stealth. Journal of Asia and the Pacifc Economy. 17 (3).
pp. 514526.
Fujii, M., and M. Kawai. 2012. Lessons from Japans Banking Crisis: 19912005. In Research Handbook on International
Financial Regulation. Edited by K. Alexander and R. Dhumale. Cheltenham and Northampton: Edward Elgar.
Ito, H., and M. Kawai. 2012. Te Trilemma Challenge for SEACEN Member Economies: Testing the Trilemma
Hypothesis. In Exchange Rate Appreciation, Capital Flows and Excess Liquidity. Edited by V. Pontines and R.Y. Siregar.
Kuala Lumpur: Te SEACEN Centre.
Kato, A., and W. Torbecke. 2012. Te Efect of Exchange Rate Changes on Japanese Consumption Exports. Japan and the
World Economy. 24 (1). pp. 6471.
50
Year in Review 2012
Kawai, M. 2012. Scope for Regional Exchange Rate Policy Coordination in Asia. In Proceedings of the First SEACEN
CEMLA Conference Te Implementation of Monetary Policy: Lessons from the Crisis and Challenges for the Coming Years.
Kuala Lumpur: Te SEACEN Centre. pp. 461473.
. 2012. Capital Infows and Regional Policy Cooperation. (A panel presentation at the ADB Forum on the Use of
Capital Controls). Asian Development Review. 29 (1). pp. 112118.
Kawai, M., M.B. Lamberte and S. Takagi. 2012. Managing Capital Flows: Lessons from the Recent Experiences of
Emerging Asian Economies. In Regulating Global Capital Flows for Long-Run Development. Edited by K. P. Gallagher, S.
Grifth-Jones, and J. A. Ocampo. Boston: Boston University Creative Services.
Kawai, M., and D. Lombardi. 2012. Financial Regionalism. Finance & Development. 49 (3). pp. 2325.
Kawai, M., and P. Morgan. 2012. Central Banking for Financial Stability in Asia. Public Policy Review. 8 (3). pp. 215246.
Kawai, M., and M. Pomerleano. 2012. Strengthening Systemic Financial Regulation. In Implications of the Global Financial
Crisis for Financial Reform and Regulation in Asia. Edited by M. Kawai, D.G. Mayes and P.J. Morgan. Cheltenham, UK:
Edward Elgar.
Kawai, M., and S. Takagi. 2012. A Proposal for Exchange Rate Policy Coordination in East Asia. In Monetary and Currency
Policy Management in Asia. Edited by M. Kawai, P.J. Morgan and S. Takagi. Cheltenham, UK: Edward Elgar.
Kawai, M., and S. Urata. 2012. Changing Commercial Policy in Japan, 19852010. In Te Oxford Handbook of
International Commercial Policy. Edited by M.E. Kreinin and M.G. Plummer. Oxford and New York: Oxford University
Press.
Kawai, M., and F. Zhai. 2012. Asias Post-Global Financial Crisis Adjustment: A Model-Based Dynamic Analysis. In
Monetary and Currency Policy Management in Asia. Edited by M. Kawai, P.J. Morgan and S. Takagi. Cheltenham, UK:
Edward Elgar.
. 2012. China-Latin America Economic Cooperation: Going beyond Resource and Manufacturing
Complementarity. In Sino-Latin American Economic Relations. Edited by K. C. Fung and A. Garcia-Herrero. London
and New York: Routledge.
Li, H., M. Liu, A.M. Liu, and Wang, J.Q., T. Wei. 2012. Global Health Governance in China: the Case of Chinas Health
Aid to Foreign Countries. In Asias Role in Governing Global Health. Edited by K. Lee, T. Pang and Y. Tan. Abingdon,
UK: Routledge.
Liu, M., 2012. Growth and Equity in the PRC: Pattern, Causes and Challenges. Journal of International Commerce,
Economics and Policy. 3 (3). pp. 122.
Liu, M., and S. Hossain. 2012. Disasters and Supply Chains in the Region. State of the Region: 2012-2013. Pacifc
Economic Cooperation Council. pp. 911.
Liu, M. et al. 2012. Public Funding for Maternal and Child Healthcare in China: Funding Modalities and Cost Estimates (in
Chinese). Beijing: Science Press.
Mayes, D., and P. Morgan. 2012. Te Global Financial Crisis and its Implications for Financial Sector Reform and
Regulation in Asia. In Implications of the Global Financial Crisis for Financial Sector Reform and Regulation in Asia.
Edited by M. Kawai, D. Mayes, and P. Morgan. Cheltenham, UK: Edward Elgar.
51
Appendix 5: Selected ADBI Publications
Mikic, M., G. Pasadilla, and P. Sauve. 2012. Service sector reforms: Asia-Pacifc perspectives. In Service Sector Reforms: Asia-
Pacifc Perspectives. Edited by M. Mikic, G. Pasadilla, and P. Sauve. Bangkok: ARTNeT secretariat.
Morgan, P. 2012. Te Role and Efectiveness of Unconventional Monetary Policy. In Monetary and Currency Policy
Management in Asia. Edited by M. Kawai, P. Morgan and S. Takagi. Cheltenham, UK: Edward Elgar.
. P. 2012. Te Role of Macroeconomic Policy in Rebalancing Growth. Journal of Asian Economics. 23 (1). pp.
1235.
Parulian, F., and V. Pontines. 2012. Te Nexus Between Business Cycle Synchronization and Financial Integration in the
Asia-and Pacifc Region. In Real and Financial Integration in East Asia. Edited by S. Tangavelu, A. Chongvilavan and F.
Parulian. UK: Routledge.
Pasadilla, G. 2012. Asia and the Pacifc-LAC Investments: Te Glue Tat Can Bind the Two Regions. In Shaping the Future
of Asia and the Pacifc-Latin America and the Caribbean Relationship. Manila: Asian Development Bank.
Pasadilla, G., and B. Shepherd. 2012. Trade in Services and Human Development: A First Look at the Links. In Service
Sector Reforms: Asia-Pacifc Perspectives. Edited by M. Mikic, G. Pasadilla, and P. Sauve. Bangkok: ARTNeT secretariat.
Pontines, V., and R. Siregar. 2012. Exchange Rate Asymmetry and Flexible Exchange Rates under Infation Targeting
Regimes: Evidence from Four East and Southeast Asian Countries. Review of International Economics. 20 (5). pp. 893
908.
. 2012. Fear of Appreciation in East and Southeast Asia: Te Role of the Chinese Renminbi. Journal of Asian
Economics. 23 (4). pp. 324334.
Wignaraja, G. 2012. Commercial Policy and Experience in the Giants: China and India. In International Commercial
Policy. Edited by M.E. Kreinin and M.G. Plummer. New York: Oxford University Press.
. 2012. Innovation, learning, and exporting in China: Does R&D or a Technology Index Matter? Journal of Asian
Economics. 23 (3). pp. 224233.
Xing, Y. 2012. Processing Trade, Exchange Rates and Chinas Bilateral Trade Balances. Journal of Asian Economics. 23 (5).
pp. 540547.
52
Appendix 6: Top 30 Downloads of 2012
ADBI Top Downloads 2012 Year Category
1 Infrastructure for a Seamless Asia (ADB and ADBI) 2009 Book
2
Shaping the Future of the Asia and the Pacifc-Latin America and the Caribbean Relationship
(ADB, ADBI, and IADB)
2012 Book
3 Lessons of the European Crisis for Regional Monetary and Financial Integration in East Asia (U. Volz) 2012 Working Paper
4 Corporate Social Responsibility and Public Policy (K. Tanimoto) 2007 Seminar Materials
5 Public-Private Partnerships in the Social Sector (Y. Wang) 2000 Book
6 Asias Wicked Environmental Problems (S. Howes and P. Wyrwoll) 2012 Working Paper
7 Service Sector Reforms Asia-Pacifc Perspectives (P. Sauv, G. Pasadilla and M. Mikic) 2012 Book
8 The Global Financial Crisis, Future of the Dollar, and the Choice for Asia (D. Chung and M. Kawai, eds.) 2011 Book
9 The Role of Credit Rating Agencies (M. Habir) 2004 Seminar Materials
10 The Global Economic Crisis: Impact on India and Policy Responses (R. Kumar and P. Vashisht) 2009 Working Paper
11 Successful Wastewater Management in Singapore (R. Meiyappan) 2004 Seminar Materials
12 Growth and Poverty: Lessons from the East Asian Miracle Revisited (M. Quibria) 2002 Research Paper
13 Global Prospects for Migration and Remittances in 2012: Implications for Asia (D. Ratha) 2012 Seminar Materials
14 ASEAN 2030: Toward a Borderless Economic Community (ADB and ADBI) 2012 Draft Highlights
15 Managing Capital Flows: The Search for a Framework (M. Kawai and M. Lamberte, eds.) 2010 Book
16 ADBI Three-Year Rolling Work Program, 20122014 and Budget for 2012 (ADBI) 2011 Key Documents
17 NGO Law and Governance (G. Stillman) 2007 Book
18
Efective Development Aid: Selectivity, Proliferation and Fragmentation, and the Growth Impact of
Development Assistance (T. Kihara)
2012 Working Paper
19
How the iPhone Widens the United States Trade Defcit with the Peoples Republic of China
(Y. Xing and N. Detert)
2010 Working Paper
20
Services as a New Engine of Growth for ASEAN, the Peoples Republic of China, and India
(B. Shepherd and G. Pasadilla)
2012 Working Paper
21 The Five-Phases of Economic Development and Institutional Evolution in China and Japan (M. Aoki) 2011 Working Paper
22 Services Trade: Approaches for the 21st Century (ADBI and PECC) 2012 Book
23 Revisiting the Internationalization of the Yuan (Y. Yu) 2012 Working Paper
24 How to Draft Project Proposal (S. Ra) 2005 Seminar Materials
25 Developing Asias Pension Systems and Old-Age Income Support (D. Park and G. Estrada) 2012 Working Paper
26
Estimating Demand for Infrastructure in Energy, Transport, Telecommunications, Water and Sanitation in
Asia and the Pacifc: 2010-2020 (B. Bhattacharyay)
2010 Working Paper
27
Fiscal Policy Issues for India after the Global Financial Crisis (20082010) (R. Kumar and A. SoumyaA.
Soumya)
2010 Working Paper
28 Corporate Governance of Banks in Asia Volume 1 (S. Nam) 2006 Book
29 The Mekong Region: Foreign Direct Investment (J. Menon, S. Bhandari and P. Athukorala) 2006 Book
30 Europes Debt Crisis, Coordination Failure, and International Efects (S. Collignon) 2012 Working Paper
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