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© 2010 Asian Development Bank Institute

Table of Contents

Dean’s Message ................................................................................................................................... 2

Advisory Council ................................................................................................................................... 3

Vision and Overview ........................................................................................................................... 4

Infrastructure for a Seamless Asia ....................................................................................................... 5

Working with ADB Headquarters and Other Knowledge Partners .................................................. 8

Research Highlights ........................................................................................................................... 12

Capacity Building and Training ........................................................................................................ 24

Outreach Highlights ........................................................................................................................... 32

Appendix 1: Organization Chart ...................................................................................................... 36

Appendix 2: Deans and Advisory Council Members ..................................................................... 37

Appendix 3: Brown Bag Lunches ...................................................................................................... 38

Appendix 4: CBT Events ..................................................................................................................... 39

Appendix 5: Selected ADBI Publications ......................................................................................... 41

Appendix 6: Top 30 Downloads of 2009 .......................................................................................... 48

List of Abbreviations
ADB Asian Development Bank

ADBI Asian Development Bank Institute

APEC Asia-Pacific Economic Cooperation

ASEAN Association of Southeast Asian Nations

CBT capacity building and training

DAJA Developing Asia Journalism Awards

DMC developing member country

EIC eco-industrial cluster

ERD Economics and Research Department

EU European Union

FTA free trade agreement

G20 Group of Twenty

GDP gross domestic product

GFC global financial crisis

IEI international economic institution

IMF International Monetary Fund

IWRM Integrated Water and Resources Management

MDG Millennium Development Goal

MFTOT Microfinance Training of Trainers

MP3IC Multilateral PPP for Infrastructure Capacity Building

NEAR North East Asia Research Foundation

OECD Organisation for Economic Co-operation and Development

OREI Office of Regional Economic Integration

PPP public-private partnership

PRC People’s Republic of China

ROO rules of origin

RSDD Regional and Sustainable Development Department

SAARC South Asian Association for Regional Cooperation

SAFTA South Asian Free Trade Area

SME small- and medium-sized enterprise

SPS sanitary and phytosanitary

WTO World Trade Organization

US United States

“$” = US dollar
Dean’s Message

orld markets experienced great turbulence
in 2009 as a result of the global financial
crisis (GFC); many Asian economies were
affected to varying degrees. Early in the year, the Asian
Development Bank Institute (ADBI) responded quickly
by adjusting its work program to include an extensive
project on the crisis. Over the year, we conducted Regional and Sustainable Development Department
more than twenty conferences, workshops, and (RSDD). Examples of such collaboration are the joint
seminars with experts from Asian think tanks, regional project on Asia’s Free Trade Agreements and the
policymaking agencies, the Asian Development Bank high-level conference on The Impact of the Global
(ADB) headquarters, other international organizations, Economic Slowdown on Poverty and Sustainable
and prominent academics, researchers, and experts. Development. The former collaboration is expected to
These events analyzed the impacts of the crisis on lead to the ADB-ADBI joint publication of Asia’s Free
the region, examined its medium-term implications Trade Agreements: How is Business Responding?;
for Asian economies, and made policy measure the latter resulted in the joint publication, Poverty
recommendations for the ways to address the crisis in and Sustainable Development in Asia: Impacts and
the short-term and to set the stage for a normalization Responses to the Global Economic Crisis.
of financial market conditions and balanced, broad-
based, and sustainable economic growth. Results of the We conducted many workshops for senior-level officials
project will be published in a series of books, the first from ADB developing member countries (DMCs) to
of which will be Rebalancing for Sustainable Growth: enhance their understanding of important development
Asia’s Postcrisis Challenge. issues, to identify appropriate policies or measures to
address these issues, and to assist them in implementing
In addition to this major project that cut across them effectively. In response to the GFC, additional
our work program themes, ADBI continued other focus on this issue was incorporated into some capacity
activities under its three established priority themes building and training (CBT) activities.
of (i) inclusive and sustainable growth, (ii) regional
cooperation and integration, and (iii) governance for ADBI has begun to vigorously seek the financial
policies and institutions. support of ADB member countries in addition to
the existing support provided by the Government of
The flagship research project on infrastructure Japan. Such support can be made by making voluntary
and regional cooperation, which culminated in contributions to ADBI’s special fund, setting up a trust
the publication of Infrastructure for a Seamless fund with ADBI, or co-sponsoring ADBI programs.
Asia, examined key issues and challenges facing
infrastructure development in Asia and the Pacific I maintain our full commitment to the quality of
region in its continuing efforts to support regional our activities by pursuing excellence, originality, and
cooperation. This project is a fine example of close professionalism. This publication chronicles ADBI’s
collaboration between ADBI and ADB headquarters. activities in 2009 to give a better understanding of
our work in response to the global crisis and, more
I am encouraged that in the past year, ADBI actively generally, how our work can influence policymakers for
pursued oppor tunities for better coordinated a better Asia and Pacific region.
knowledge management and dissemination with ADB
headquarters in an effort to enhance our synergy
with the three other knowledge departments of ADB:
Economics and Research Department (ERD), Office Masahiro Kawai, Dean
of Regional Economic Integration (OREI), and Asian Development Bank Institute

Advisory Council

he functions of the Advisory Council are set In accordance with Article IV of the ADBI Statute, the
out in Article IV of the ADBI Statute. The Advisory Council provides advice and recommendations
Council has seven members, one of whom is on the strategic directions of ADBI and reviews
a senior official from ADB headquarters. The other and comments on the ADBI work program. In the
members of the Advisory Council are distinguished governance structure of ADBI, the Advisory Council
practitioners or scholars in the field of development plays a crucial role in guiding ADBI’s activities and
or management selected from among ADB’s member ensuring that its work products and chosen projects are
countries on a broad geographical basis. Members are of the highest standards and relevance.
appointed for two years and may be reappointed. They
meet twice a year, once on the premises of ADBI and
once at ADB headquarters.

Name Country
Masahiko Aoki
President, International Economic Association
K.M. Chandrasekhar
Cabinet Secretary, Government of India
Gang Fan
People’s Republic of China
Director, National Economic Research Institute
Victor H. Frank, Jr.
United States
President, Asian Programs Foundation
Eric Girardin
Professor of Economics, Université de la Méditerranée, Aix-Marseille
Andrew MacIntyre
Director, Crawford School of Economics and Government, Australian National University
Jong-Wha Lee
Officer-in-Charge, Office of the Chief Economist

Other Advisory Council Members:

K. M. Chandrasekhar and Gang Fan

ADB President Haruhiko Kuroda and ADBI Dean Masahiro Kawai pictured
with AC 2008–2010 members. Standing (from left): Andrew MacIntyre, Eric
Girardin, Masahiro Kawai, and Jong-Wha Lee. Seated (from left): Masahiko
Aoki, Haruhiko Kuroda, and Victor H. Frank, Jr.

ADBI extends condolences to the family, friends, and colleagues of Victor H.

Frank, Jr., who passed away on 6 April 2010. Mr. Frank was a valued, long-
time member of our Advisory Council.
Vision and Overview

DBI is increasingly recognized as a leader in excellence and originality in areas where it has a
creating and sharing knowledge on economic strategic advantage. In order to further strengthen its
development in the Asia and Pacific region. reputation as a trusted knowledge institution, ADBI
ADBI conducts research and capacity building and continues to enhance its refereeing processes and post-
training activities that contribute to ADB’s objective project evaluation.
of poverty reduction. Its work focuses on the region’s
medium- to long-term development issues of strategic ADBI increases the impact of its activities by working
importance and targets senior level policymakers. closely with leading policy-oriented think-tanks
to develop sound and practical recommendations
The objectives of ADBI, as set forth in its Statute, regarding policy reforms.
are to identify effective development strategies and to
improve the capacity for sound development of the In 2009, ADBI adopted a work program with three
agencies and organizations in the DMCs. strategic priority themes:
t Inclusive and environmentally sustainable growth
ADBI strives to be a laboratory for new ideas and to t Regional cooperation and integration
shape the debate on key emerging issues. It does this t Governance for policies and institutions
by responding to important challenges affecting many These priority themes form the basis for all ADBI
stakeholders in the region in a timely, operationally- activities. Private sector issues, as drivers of economic
relevant, and policy-oriented fashion. development, cut across all the strategic themes.

ADBI emphasizes the quality, rather than the quantity, ADBI’s financial statements can be found in the
of its research and CBT programs by pursuing ADB Annual Report 2009, Vol. 2.

Infrastructure for a Seamless Asia

nder ADB and ADBI’s joint flagship study In view of Asia’s enormous, untapped economic
on infrastructure and regional cooperation, potential and the ongoing global economic and
a p re p u b l i c a t i o n ve r s i o n o f t h e b o o k financial crisis, Asia needs to build efficient,
Infrastructure for a Seamless Asia was launched at environment-friendly connections and networks
ADB’s 42nd Annual Meeting in May 2009; the final across Asia and to the rest of the world to create a
version was released in September. This pioneering more competitive, prosperous, and integrated region.
book is the first time a study on regional infrastructure The “seamless” concept is relevant to Asia today as
such as this one has been undertaken. The book has substantial efforts are being made to enhance regional
been a great success since its launch, with over 50,000 economic integration and the creation of an Asian
downloads in the first month after its publication on common market. The development of a pan-Asia
ADBI’s website in September. The flagship study serves network of infrastructure is essential to effectively
as a definitive knowledge product for stakeholders in realize these key drivers of the region’s future growth
the region and beyond, having received global attention potential.
from senior policymakers and business circles as well as
media across Asia. A volume of the background papers Increasing infrastructure investment is essential for
conducted for the flagship study is currently in progress several reasons. First, efficient infrastructure enhances
and further follow-up studies are being undertaken by competitiveness and productivity, helps increase
ADB, the Economic Research Institute for ASEAN standards of living and reduce poverty by connecting
and East Asia (ERIA), and the Japan International isolated places and people with major economic
Cooperation Agency (JICA). The book has been centers, and promotes environmental sustainability.
translated into Chinese and Japanese. It also forms an important part of fiscal stimulus
packages, especially in the case of prolonged crises,

ADBI Dean Masahiro Kawai; Sri Mulyani Indrawati, Minister of Finance for Indonesia and 2009 Chair of ADB’s Board of
Governors; ADB President Haruhiko Kuroda; and Rajat Nag, ADB Managing Director General, launch the book Infrastructure
for a Seamless Asia at ADB’s Annual Meeting in Bali, Indonesia.

Year in Review 2009

The study found that Asia needs to invest approximately

$8.3 trillion in infrastructure (both national and
regional) during 2010–2020. It covered four areas of
infrastructure including energy, telecommunications,
transport, and water and sanitation, for investments in
both new capacity and replacements. According to the
study, infrastructure investment in energy, especially
electric power, at $4 trillion would account for almost
half the total needed investment. In the 11-year
period reviewed, investment in telecommunications,
transport, and water and sanitation needed to meet
demand would equal $1 trillion, $2.5 trillion, and
$380 billion, respectively. These investments would be
expected to produce substantial real income gains of
about $13 trillion total for developing Asia during this
period and after. For example, the People’s Republic of
China (PRC) could see gains of $3.5 trillion and India
of $3 trillion following the necessary investments,
representing remarkable increases in real income.
The investments would also have positive effects on
real incomes in Indonesia, Thailand, Malaysia, and
Viet Nam to the tune of $1.3 trillion, $1.2 trillion,
$830 billion, and $400 billion, respectively.
facilitating and driving economic recovery and helping
to sustain medium- to long-term growth. Additionally, One of the major challenges to creating an Asia with
national and regional infrastructure investment helps to fewer barriers to the free movement of goods, services,
rebalance Asia’s growth by increasing regional demand and people is in finding ways to finance such massive
and intraregional trade. infrastructure investment. In this regard, the study
emphasized that governments in Asia must bolster their
The study analyzed the major challenges in developing collective efforts to mobilize the large pool of regional
r e g i o n a l i n f r a s t r u c t u r e — b o t h h a rd a n d s o f t savings for viable regional infrastructure. It looks to
infrastructure—through fostering regional cooperation strengthening national and regional bond markets,
toward a seamless Asia. The study covered ADB’s 44 particularly local currency bond markets through the
DMCs across the Asia and Pacific regions as well as Asian Bond Market Initiative and the Asian Bond
Japan and Brunei Darussalam. It evaluated existing Funds, as a necessary step in creating a viable source
regional infrastructure programs, policies, and of regional investment and tapping the region’s vast
institutions, making recommendations on what the savings. Additionally, it detailed the need to identify
region can do to meet these challenges and providing a and prepare “bankable” projects to encourage private
framework for pan-Asian infrastructure cooperation. It financing and have an effective financing framework
discussed aspects of both hard and soft infrastructure— that can help mobilize the region’s vast savings and
respectively, the long-term physical structures, encourage public-private partnerships.
equipment, and facilities (along with the economic
services they provide) and the policy, regulatory, The study noted that it is important to have a top-
trade facilitation, and institutional frameworks that down, market-expanding, and demand-inducing
support the development and operation of physical approach for Asian connectivity to complement the
infrastructure. bottom-up, market-driven approach that Asia has

Infrastructure for a Seamless Asia

largely followed to date. It presented a framework In view of Asia’s varied needs, circumstances, and
for pan-Asian infrastructure cooperation toward the political commitment to closer integration, subregional
creation of a seamless Asia. This requires a common infrastructure programs have been proceeding
vision, strong leadership, and shared commitment at different speeds and on different tracks. Asia
by Asian leaders; strong institutional capacities at the should create pan-Asian infrastructure networks by
national level; coherent infrastructure development strengthening and integrating existing subregional
at national, subregional, and regional levels; and pan- programs. The book proposes establishing a pan-Asian
Asian infrastructure strategies to prioritize investments infrastructure forum to help coordinate and integrate
and coordinate policies. Effective planning and existing subregional infrastructure initiatives and an
implementation of projects to ensure “win-win” Asian infrastructure fund to mobilize international
outcomes among participating countries can be done funds (public and private) and help prioritize, prepare,
by addressing the issue of asymmetric distribution and finance bankable regional projects. The key
of projects’ costs and benefits, and managing message of the book is that now is the time to forge
socioeconomic and environmental impacts. ahead with the goal of integrating this vast and diverse
region—for the benefit of all its citizens and for a
lasting and shared prosperity—by building pan-Asian
infrastructure connectivity.

Working with ADB Headquarters and
Other Knowledge Partners
With ADB Headquarters Internal Collaboration
ADBI activities continued to build on Internally, ADBI’s Research and CBT
research and capacity building findings departments collaborated and shared
and knowledge products from relevant resources in undertaking and organizing
projects conducted by ADB headquarters their activities. Research fellows
(and vice versa). Dissemination and participated in selected CBT activities as
discussion of these products at ADBI resource speakers and as discussants to
events, which are regional in nature, share relevant findings and outcomes of
helped to expand their outreach and their research activities. These activities
impact. provided opportunities for research
staff to gain knowledge from CBT
For 2009, ADBI collaborated with participants about emerging development
various departments and offices of ADB issues in the region. Some of the joint
headquarters such as ERD, OREI, activities organized by the Research and
R S D D , Pr i v a t e Se c t o r O p e r a t i o n CBT departments in 2009 included the
D e p a r t m e n t , St r a t e g y a n d Po l i c y Roundtable on Capital Market Reform
Department, Central and West Asia in Asia, Developing Asia Journalism
Department, South Asia Department, Awards (DAJA) and Training, and
and Southeast Asia Department. the Conference on Global Financial
Crisis: Financial Sector Reform and
Working with ADB Headquarters and Other Knowledge Partners

The Eco-Industrial Clusters: Policies and Challenges training program was organized in collaboration with ADB headquarters
and other partners.

Networking Working with Other Partners

In 2009, ADBI continued efforts to strengthen external In 2009, ADBI collaborated with global and regional
knowledge partnerships and to disseminate knowledge. organizations, government and public agencies, and
Under the ADBI Visiting Researcher Program, 11 think tanks, universities, and other knowledge partners.
researchers from the Asia and Pacific region each Working with other partners broadens ADBI’s knowledge
spent up to 6 months at ADBI. ADBI continued of development issues, raises the quality of research and
to communicate with former visiting fellows and CBT activities, widens its outreach, and enhances the
researchers to inform them of ongoing ADBI activities impact of its activities. Examples of activities that ADBI
and to inquire as to the status of their ADBI working conducted with external partners are:
papers and the outreach activities that they conducted
for their research papers. ADBI’s database of visiting Research Department
fellows, researchers, and scholars is being used to t ADBI partnered with Brookings Institution,
strengthen its network of alumni and friends of ADBI. Cornell University, and the Institute for Financial
Management and Research Trust to organize
a conference on Financial Sector Regulation
and Reform in Emerging Markets. Participants
examined a range of issues including basic
principles of financial regulation and the challenges

Year in Review 2009

of limited institutional development and regulatory

t The Accelerating Regional Integration in the
Asia-Pacific Region was a joint effort by ADBI,
the Inter-American Development Bank, and the
Institute of Southeast Asian Studies. The conference
explored modalities for accelerating regional
integration and addressing difficulties such as
limited market access and high transportation costs
in the Asia and Pacific region.
t ADBI and the North East Asia Research (NEAR)
Foundation organized a conference on the Global
Financial Crisis and Regional Financial Architecture:
The Future of the Dollar and the Choice of Asia, in
which participants discussed the changing international
financial architecture in the postcrisis era.
t ADBI, the East-West Center, the Asia-Pacific Center
at Brandeis Univeristy, and Nihon University
cooperated to organize the The People’s Republic
of China, Japan, and the United States: Deeper
Integration Workshop. Participants discussed the
nature of existing structural links among the three
countries and explored measures for improving the
policy framework that supports their deepening
economic integration.

CBT Department
t The 2009 Developing Asia Journalism Awards t The Organisation for Economic Co-operation
(DAJA) event was organized in collaboration (OECD) and ADBI’s 10th Roundtable on Capital
with InWEnt Capacity Building International. Market Reform brought together more than 100
The awards ceremony was preceded by a four- policymakers and experts from Asia, the Americas,
day training workshop in which DAJA finalists and Europe to discuss the causes of the GFC and
exchanged views with experts on the poverty impact its impact on and implications for capital market
of the GFC, government responses to the GFC, development in Asia.
infrastructure development, and climate change t The Workshop on Promoting Financial Inclusion
adaptation. through Innovative Policies was organized in
t ADBI jointly organized the third ASEAN Experts collaboration with the Asia-Pacific Economic
Group on Competition training workshop on Cooperation (APEC) Business Advisory Council
Costs and Benefits of Competition Policy, Law, and Alliance for Financial Inclusion. The workshop
and Regulatory Bodies with the US Federal provided a peer-to-peer learning and knowledge-
Trade Commission and the ASEAN Secretariat. sharing platform for policymakers to enhance their
The workshop introduced and shared country capacity to develop an innovative and enabling
experiences on assessment of costs and benefits of policy environment for financial inclusion in agent
competition policy and law, design of an effective banking, mobile phone banking, diversifying
competition law, and efficiency of competition providers, reforming public banks, financial identity
regulatory bodies. regulation, and consumer protection.

Working with ADB Headquarters and Other Knowledge Partners

ADBI’s Partners

Global Organizations: Alliance for Financial Inclusion (AFI); Bank for International Settlements (BIS); Food and
Agriculture Organization of the United Nations (FAO); International Bureau of Fiscal Documentation (IBFD);
International Labor Organization (ILO); International Monetary Fund (IMF); International Organization for Migration
(IOM); Organisation for Economic Co-operation and Development (OECD); Public-Private Infrastructure Advisory Facility
(PPIAF); United Nations Capital Development Fund (UNCDF); United Nations Conference on Trade and Development
(UNCTAD); United Nations Development Programme (UNDP); United Nations Economic Commission of Europe (UNECE);
United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP); World Bank, including its Institute,
International Finance Corporation (IFC), and Multilateral Investment Guarantee Agency (MIGA); World Customs
Organization (WCO); World Health Organization (WHO).

Regional Organizations: Asia Europe Economic Forum; Asia Europe Foundation (ASEF);
Asia-Pacific Economic Cooperation (APEC); APEC Business Advisory Council (ABAC); Association of Southeast Asian
Nations (ASEAN); Asian Productivity Organization; Central Asia Regional Economic Cooperation (CAREC); Economic
Research Institute for ASEAN and East Asia (ERIA); Colombo Plan Staff College for Technician Education (CPSC);
European Central Bank (ECB); European Investment Bank (EIB); Inter-American Development Bank (IADB); Latin
America/Caribbean and Asia Pacific Economics and Business Association (LAEBA); Network of Asian River Basin
Organizations (NARBO); South Asian Association for Regional Cooperation (SAARC).

National, Government, and Public Agencies: Australian Agency for International Development (AusAID); Bank of Italy;
China Banking Regulatory Commission (PRC); Japan Centre for Economic Research (JCER); Japan Fair Trade Commission
(JFTC); Financial Services Agency (Japan); Ministry of Agriculture and Cooperatives (Thailand); Ministry of Agriculture,
Forestry and Fisheries; Ministry of Foreign Affairs; Ministry of Finance; Ministry of the Economy, Trade and Industry;
National Tax Agency; United Kingdom Foreign and Colonial Office-Mumbai; US Agency for International Development
(USAID); US Department of Justice; US Federal Trade Commission (FTC).

Think Tanks, Universities, and Other Knowledge Institutions: Asian Institute of Technology (AIT); Asia-Pacific Finance
Development Center (Beijing); Alliance for Financial Inclusion; Bank of Communications, New Finance Editorial
Department (Shanghai); Bond University; Brookings Institution; Bruegel (Brussels); Centre d’Etudes Prospectives
et d’Informations Internationales; Centre on Trade and Economic Integration (CTEI) of the Geneva-based Graduate
Institute of International and Development Studies (HEID); Chulalongkorn University; City University of Hong Kong;
Claremont McKenna College; Columbia University; Consultative Group to Assist the Poor, European Commission;
Cornell University; East-West Center; Dankook University (Korea); Earth Institute, Columbia University; European
Institute for Asian Studies; Hertie School of Governance (Berlin); Hitotsubashi University; Indian Council for Research
on International Economic Relations (ICRIER); Institute for Financial Management and Research Trust (India); Institute
for Global Environmental Strategies (IGES); Institute of Southeast Asian Studies (ISEAS); Institute for World Economics
and Politics, Chinese Academy of Social Sciences (CASS); Keio University; International Development Research Centre
(IDRC/CRDI); Japan Water Agency (JWA); Jasa Tirta I Public Corporation; InWEnt; Kiel Institute for World Economics;
Korea Institute for International Economic Policy (KIEP); Korea University; Monash University; Nanyang Technological
University; National Cheng Kung University; National University of Singapore; North East Asia Research (NEAR)
Foundation; Policy Research Institute (PRI); RMIT University; Research and Information System for Developing
Countries (RIS); Tax Academy (Malaysia); Tokyo Development Learning Center (TDLC); United Nations University (UNU);
Universidad del Pacifico (Peru); Vienna Institute of International Economic Studies (VIIES).

Research Highlights

n view of ADB’s long-term strategic Research Activities, 2009
framework 2008–2020 (Strategy
Activity Number
2020), under the vision of an Asia
and Pacific free of poverty, ADBI has Conduct of Research
refocused its priority themes to align Projects (each project 20
consisting of several studies)
to these strategies. This strategy is
Individual Studies 25
complemented by three agenda items:
inclusive and environmentally sustainable Publications
g row t h , re g i o n a l c o o p e r a t i o n a n d Books 2
Research policy briefs 3
integration, and governance for effective
Working papers 53
policies and institutions. Special publication 1

The research activities implemented in Distinguished Speaker Seminars 9

2009 in support of the main thrust of Major Conferences 28
ADB were initiated before and during
Project Workshops/Seminars 5
the year. These research initiatives were
conducted by ADBI research staff, Brown Bag Lunch Seminars 14
visiting fellows and researchers, and
Research Highlights

Projects with Cross-Cutting pan-Asian infrastructure forum to coordinate existing

subregional infrastructure initiatives. It projected an
Themes annual infrastructure investment in the region of $750
Flagship Project billion during 2010–2020, and proposed an Asian
The flagship project was completed in 2009 and, in infrastructure fund to mobilize Asian and international
partnership with ADB, the prepublication version of funds.
Infrastructure for a Seamless Asia was launched at
ADB’s 42nd Annual Meeting in May; the final version Global Financial Crisis Project
was released in September. The study outlined key In response to the evolving GFC, ADBI conducted
policies and best practices the region should follow to research to evaluate the major aspects of the impacts of
guide policymakers involved in developing regional the crisis on Asia and organized 22 events under this
infrastructure. It recommended the establishment of a project. The five major themes covered (discussed in

Key Recommendations from the Global Financial Crisis Project

Some major recommendations that resulted from the project are:
t implement a regime for monetary policy that takes account of asset price movements to avoid creating
t implement a system for macro-prudential surveillance and regulation of the financial sector;
t take steps to further deepen regional bond markets, including promotion of rating agencies, liberalization of
issuing requirements, and harmonization of regulations and tax regimes;
t work toward achievement of regional agreements to liberalize trade and investment, including services trade;
t promote the strengthening of social safety nets and national pension systems to reduce the need for
precautionary saving and to encourage consumption;
t promote environmentally sustainable growth by formulating effective renewable energy policies and resource
efficiency strategies, and taking steps to cut trade barriers for green technology transfer; and
t promote the development of an Asian infrastructure investment fund to support infrastructure investment
in the region.

Year in Review 2009

greater detail in a subsequent section) in the project Patterns of Inclusive Growth in Developing Asia:
are: (i) macroeconomic impacts and policy responses; Insights from an Enhanced Growth-Poverty Elasticity
(ii) real economy (sector) impacts; (iii) financial sector Analysis attempted to identify key factors that explain
reform and regulation; (iv) social and environmental the observed wide variation in patterns of inclusiveness
impacts; and (v) regional cooperation and architecture. of economic growth in Asia. Results affirmed the
The research results in general indicated a need for significant impact of the level of quality of governance,
Asia to rebalance growth between production and public expenditures on social services, and contribution
spending (current account rebalancing); growth and of agriculture to gross domestic product (GDP)
environmental and climate change challenges (green growth, in that order of importance.
growth); and growth and social inclusion (inclusive
growth). Agricultural Impact of Climate Change: A General
Equilibrium Analysis with Special Reference to
In 2009, twenty-eight working papers were published Southeast Asia utilized recent worldwide estimates
under this project. A book based on the various of the impacts of climate change on agricultural
research papers produced under this project focusing production to assess the economic effects of climate
on Asia’s postcrisis agenda for reform is expected to be change for Southeast Asian countries through 2080.
launched in 2010. The paper revealed that in the coming decades,
most Southeast Asian economies will suffer more
welfare losses through deteriorated terms of trade and
Inclusive and Sustainable Growth
advocated that the region concentrate on reversing its
Nine working papers have been published under this current trend of declining agricultural productivity.
theme; three of these are highlighted below.

Research Highlights

Regional Cooperation and

Fifteen working papers were published under this
theme; four papers are highlighted below.

Reform of the International Financial Architecture: An

Asian Perspective evaluated whether the international
financial architecture is adequate for maintaining
the financial stability of East Asian economies. The
paper revealed that despite prior reforms, the existing
international financial architecture remains inadequate
for the needs of many emerging market economies. It
recommended that East Asian authorities focus on the
establishment of resilient national financial systems,
integration of national financial markets, enhancement
of regional liquidity and surveillance mechanisms, and
regional exchange rate policy coordination.

Asian FTAs: Trends and Challenges provided new

evidence from firm surveys, analysis of specific
agreements, and computable general equilibrium
Strategic Choice of Freight Mode and Investments in estimates to examine key trends and challenges of Asian
Transport Infrastructure within Production Networks free trade agreements (FTAs). It argued for strengthening
showed that the strategic choice of using an alternative the support system for using FTAs, rationalization
transport mode does not necessarily induce lower of rules of origin (ROO), ensuring better coverage of
access charges relative to the standard transport mode. agricultural trade issues, forging comprehensive “WTO-
It implied that interactions among infrastructure, plus” agreements, and establishment of a region-wide
investments, building transportation capacity costs, FTA.
and industry-specific characteristics should be carefully
assessed when planning transport infrastructure, Impacts of Free Trade Agreement on Business Activity
investments to enhance competitiveness in export in Asia: The Case of Japan investigated how East Asian
markets. FTAs have affected the behavior of Japanese firms,
including their affiliates operating overseas. The results
Other papers dealt with a variety of policy issues revealed that presently, FTAs are neither well known
such as demographic changes and pension reform, nor well utilized by Japanese firms. There are several
food safety and information and communications reasons for the low utilization; one of which is the
technology traceability systems, market-based strategy cumbersome documentation requirements that hinder
and biodiversity and environmental management, small- and medium-sized enterprises from utilizing
strategic choice of freight mode and investments FTAs.
in transport infrastructure, and stress and risk in
public-private partnerships (PPPs) in infrastructure Assessing Foreign Direct Investment Relationships
investment. Between Japan, the People’s Republic of China (PRC),
and the United States (US) examined in detail the huge
investment flows in the PRC, particularly those from
the US and Japan, to gain perspective on the relative

Year in Review 2009

importance of the inflows for the three countries. challenges to achieve this end: the capture of solar
The results revealed a much higher degree of export- power, development of fusion power, and carbon
orientation for Japanese affiliates than for American capture and sequestration.
affiliates; but, over time, there appeared to be a
tendency toward convergence in the sales destinations The Current Worldwide Financial and
of Japanese and American affiliates. Economic Crisis
Michael D. Intriligator,
Other papers under this theme dealt with a range Professor of Economics,
of issues such as improving connectivity within Asia Political Science, and Public
through investment in physical and soft infrastructure, Policy at the University of
options for narrowing the development gap in Asia, California at Los Angeles and
impacts of multiple overlapping FTAs on business a Senior Fellow at the Milken
activity in Asia, trade facilitation, PRC-US-Japan trade Institute, shared his views on
relations, and the impacts of exchange rate changes in the GFC as it was unfolding.
countries supplying parts and components and in East For Mr. Intriligator, two
Asian assembly economies. notable factors paved the
way for the crisis: (i) the repeal of the US’ Glass-Steagall
Act in 1999 that allowed financial institutions to engage
Distinguished Speaker Seminars
in commercial and investment banking, and insurance
This program is comprised of a series of seminars that products; and (ii) the US Federal Reserve Board’s low
aim to bring eminent persons to ADBI in order to interest rate policy under Chairman Alan Greenspan. To
encourage debate among policymakers, researchers, hasten economic recovery, Mr. Intriligator recommended,
academics, think tanks, and other audiences interested among other things, greater banking transparency and
in economic development challenges in the Asia and leverage caps for financial institutions, closer supervision
Pacific region. In 2009, eight internationally known by the Federal Reserve, and international cooperation to
economists and one political scientist delivered rethink international finance.
seminars on various policy and development issues. A
brief description of each seminar is given below. Governing the Global Economy: Problems
and Solutions
The Challenge of Climate Change: What are Pe t e r A . Pe t r i , C a r l J .
the Priority Actions for Policymakers in Asia? Shapiro Professor at
What is the Asian Development Bank Doing? Brandeis University and
Bindu N. Lohani, ADB’s Senior Fellow at the East-
Vice President for Finance West Center, discussed the
and Administration, re f o r m o f i n t e r n a t i o n a l
highlighted two points economic institutions (IEIs)
i n h i s l e c t u r e : A D B ’s and explored their built-in
commitment to clean energy structural limitations using
and environment, and policy “club theory.” For Mr. Petri,
recommendations to address the “governance trilemma”—the difficulty of achieving
climate change. He then universal, democratic, and decisive institutions—
concluded by highlighting summarized the fate of IEIs. He used the “club theory”
the potential of technological innovations to make framework in his analysis, which offered two solutions
clean energy affordable and efficient and promoted the toward more flexible and responsive institutions: (i)
exploration of technology in efforts to address climate Tiebout or “voting with your feet” solution; and (ii)
change. Mr. Lohani identified three major engineering decentralized decisions. The first solution would create

Research Highlights

competing clubs to give countries more choices in distance between the US and the PRC—only distance
addressing their needs. The second solution would was found to play a significant role. Mr. Bosworth
allow subgroups within an institution to craft policies argued that the US’ poor export performance to the
that not all members subscribe to. PRC is not particular to the PRC as the US has trade
deficits with almost all the countries in the world and
Short-Term Anti-Crisis Policy and Long-Term uncompetitive real exchange rates may have something
Growth of the PRC to do with this.
Fan Gang, Director of the
National Economic Research Market-Driven Integration in East Asia
Institute and Chairman Eisuke Sakakibara,
of the China Reform P r o f e s s o r a t Wa s e d a
Foundation, addressed key Un i v e r s i t y a n d f o r m e r
questions surrounding the Japanese Vice Minister of
current recession in the Finance, delivered a lecture
PRC. Mr. Fan shared his on East Asian integration
optimism on the PRC’s long- and examined how it fared
term growth. He revealed with that of the European
that a growth-accounting study showed total factor Union (EU). He pointed out
productivity and input growth to be behind high GDP that, unlike the institution-
growth rates. To hasten economic recovery from the driven integration of the EU, markets have played a
crisis, he identified two structural impediments that pivotal role in creating Asian integration. It may have
must be resolved: the PRC’s high savings rate and low been the fortuitous effect of the 1985 Plaza Accord,
consumption rate. To promote household spending, which doubled the Japanese yen’s value vis-à-vis the US
the minimum wage and social welfare spending should dollar in two years. Increasing costs at home and an
be increased and income tax rates should be reduced. appreciated currency attracted Japanese firms to expand
Mr. Fan concluded that current expansionary policies their business operations overseas. Mr. Sakakibara
should be continued at least until 2010 in order to believed that regional integration is irreversible. Intra-
sustain growth. regional trade will continue to increase, which makes
regional cooperation very compelling. If trade in the
Determinants of US Exports to the PRC region reached 60%, a common market could be
Barr y Bosworth, Senior forged in 30–40 years; although the form may differ
Fellow and Robert V. Roosa from that of the EU.
Chair in International
Economics at Brookings Look West: The Evolution of US Trade Policy
Institution, shared his Toward Asia in the Context of the Global
findings on the determinants Finalncial Crisis
of US exports to the PRC. Vinod K. Aggarwal,
He pointed out that the Professor in the Department
share in GDP of US imports of Political Science and
from the PRC is comparable Director of the Berkeley
to those of Japan and the European Union-15; but APEC Study Center at the
only Japan has mirrored the rising trend in its exports University of California at
to the PRC since the mid-1980s. Of the three probable Berkeley, gave a lecture on
factors for the poor export showing of the US to the the evolution of US trade
PRC—i.e., the composition of US exports, the role policy toward Asia. Based on
of American multinational corporations, and long his proposed nomenclature of

Year in Review 2009

free trade agreements (FTAs), he divided the evolution salient factors influencing the process of creating an
into four phases: (i) multiproduct multilateralism from East Asian economic community: (i) the Chiang Mai
post-World War II until the mid-1950s; (ii) ”liberal Initiative Multilateralization; and (ii) regional exchange
protectionism” from the mid-1950s to the early-1980s; rate stability.
(iii) regionalism from the 1980s to the mid-1990s;
and (iv) “competitive liberalism” from the mid-1990s Why the Euro is NOT the Next Global Currency?
to 2008. Mr. Aggarwal believed that the Trans-Pacific Jean Pisani-Ferry, Director
Economic Partnership between New Zealand, Chile, of Bruegel and Professor of
Singapore, and Brunei Darussalam (also known as the Economics at the Université
P4 group), can provide an avenue to develop an FTA in Paris-Dauphine, lectured on
the Asia and Pacific region. the internationalization of
the euro and its prospects
Postcrisis Issues and East Asia of becoming a global
Duck-Koo Chung, currency. He argued that
Chairman of the NEAR the euro is unlikely to be en
Foundation and Professor route to become the next
in the Graduate School of global currency. The data demonstrated that the euro
International Studies at dominated only in the euro region whereas the US
Seoul National University, dollar dominated trade everywhere else. He identified
addressed the postcrisis the factors, such as demographic decline and financial
issues confronting Northeast fragmentation, which limit the internalization of the
Asian countries—Japan, euro, and posited remedies for each. He suggested
Republic of Korea (hereafter that the eurozone should adopt a proactive stance
Korea), and the PRC—and laid out the challenges towards “euroization” and should send out clear
the region faced in securing stability and prosperity signals of assistance to partner countries in times of
in the postcrisis era. For Japan and Korea, both need economic distress.
to address rising population dependency ratios,
inefficient service sectors, and depressed consumption.
For the PRC, its currency risks are amplified given its
huge foreign reserves and its status as the biggest US
creditor. The PRC needs to change its growth paradigm
and commercialize its banks. He also identified two

Research Highlights

Conferences at the conference, Global Financial Crisis: Impacts,

ADBI’s Research department organized 47 events in Lessons, and Growth Rebalancing, reviewed the
2009, some of which were jointly organized with other effects of the global economic and financial crisis on
institutions. Many of these events provided a platform Asia in order to set up a reference basis for future
for debate on emerging development issues in the conferences dealing with appropriate policy responses.
region, and others were aimed at soliciting comments Generally, research showed that Asian countries were
on the preliminary drafts of ADBI’s research outputs better poised to address problems prior to the crisis
as part of ADBI’s research quality-control mechanisms than were other countries, owing mainly to the reforms
and dissemination. undertaken after the 1997–1998 Asian crisis. In the
aftermath of that crisis, Asian governments tempered
Global Financial Crisis inflation and established prudent fiscal policies, ample
Under the GFC Project, 22 conferences were held foreign reserves, and healthy financial systems. The
under their respective themes; some of them are crisis mainly hit production in export-dependent
highlighted here. sectors where authorities responded by easing
monetary conditions and fiscal stimulus packages. The
Macroeconomic Impacts and Policy Under this conference, Global Financial Crisis: Macroeconomic
thematic area, ADBI held six events that discussed Policy Issues, developed concrete macroeconomic
a range of macroeconomic issues, including growth policy recommendations regarding ways to improve
impact scenarios for the ongoing global economic monetary policy frameworks, improve the effectiveness
crisis, lessons from previous crises, the prospects for of fiscal policy, and improve the trade-offs between
rebalancing growth away from exports and policy monetary policy independence, reserve management,
recommendations for fiscal policy, monetary policy, and currency stability.
and currency and reserve management. Participants

Year in Review 2009

Social and Environmental Impacts Two events were

completed under this theme. The first conference,
Global Financial Crisis and Social Sector Policy
Issues, reviewed evidence and analyzed the social
impacts of the global economic and financial crisis on
Asian countries. The conference discussed in detail
the effectiveness of existing social sector policies and
programs in Asia including social insurance, education,
and health. The conference, Global Financial Crisis
and Environmental Policy Issues, reviewed evidence
on and analysis of the environmental impacts of the
global economic and financial crisis. It discussed in
detail the impacts on the environment from potential
industrial restructuring and new product development
such as green products and policy measures to ensure
that a low carbon society will form an integral part of
the recovery.

Financial Sector Reform and Regulation The five

conferences completed under this thematic area covered
a wide range of issues including payment system, credit
rating, capital market development, and financial sector
reform and regulation. The conference, Credit Ratings,
Credit Rating Agencies, and their Developments in
Asia, reviewed issues about credit agencies, theoretical
Real Economy (Sector) Impacts Three conferences rationales, development, challenges, and future
were completed under this thematic area and addressed prospects in Asia. It focused on ways to increase the
a range of issues, including the impacts of the GFC on coverage of Asian issuers and to harmonize ratings
small- and medium-sized enterprises (SMEs) and trade across countries. The conference, Financial Sector
finance in Asian countries, labor market adjustment to Regulation and Reform in Emerging Markets, used
the GFC, and implications of the crisis for investment the opportunity of the GFC to re-examine the basic
and productivity. The conference, SMEs and Trade principles of financial regulation—such as mechanisms
Finance Impacts, reviewed evidence and analyzed the for dealing with open capital accounts and measures to
impacts of the global economic and financial crisis increase economic inclusion via micro finance—and
on SMEs and trade finance in Asian countries. The assess their applicability to emerging markets.
conference, Labor Market in the People’s Republic
of China (PRC) and its Adjustment to the Global Regional Cooperation and Regional and Global
Financial Crisis, discussed the development of Architecture The six events completed under this theme
the labor market in the PRC and assessed policy examined policy issues and recommendations for
implications for dealing with long-term growth improving and/or developing regional economic policy
constraints, income inequality across regions, and the and institutions aimed at preventing the recurrence of
current GFC. It also discussed labor market adjustment a systemic financial crisis in the region; improving the
experiences and lessons of other Asian countries, resilience of regional economies to external economic
including Thailand, from the 1997–1998 Asian crisis and financial shocks; and strengthening the basis
that could be useful in dealing with the impacts of the for sustainable, long-term growth. The conference,
ongoing GFC. Asian Architecture and Global Governance, jointly

Research Highlights

organized with ADB’s OREI and ERD discussed ways and the severity of the noodle bowl effect on trade;
for making IEIs more adaptable to the demands of a the effects of exchange rate policy on Asia and in the
rapidly changing world economy, possible scenarios for PRC; and accelerating regional integration. ADBI’s
the future global reserve system, and key conceptual 12th Annual Conference was held under the theme
issues related to the mechanisms that determine inclusive and sustainable growth and focused on the
how national and regional governance impacts the impact of social policy reforms on domestic demand.
international process. The conference, Europe in The issues discussed include the relationship between
Crisis?: Lessons for Asia and from Japan, jointly household savings and social protection policies and
organized with the Policy Research Institute of the demographic trends as well as the potential of state-
Ministry of Finance, Japan, covered three thematic owned enterprises’ corporate surpluses for funding
areas: (i) implications for the eurozone and Asia; (ii) government social spending, particularly in the case of
implications outside the eurozone; and (iii) lessons for the PRC.
Asia from Europe and Japan. The global financial and
economic crisis revealed that one-size-fits-all monetary
policies could “nurture” structural divergence and Workshops and Seminars
lack of competitiveness, and provide no incentives for In 2009, ADBI’s Research department hosted two
structural adjustments. Participants also identified key workshops. The first, Asia’s Agenda for G-20 Summit,
challenges arising from fiscal expansion, including exit was a brainstorming session that developed the
policies, rising fiscal debts, and further fiscal policy proposals of Asian economies for the Group of Twenty
coordination in the post-crisis era. (G20) Summit. The second, Asia’s Response to the
Global Financial Crisis and Inception Meeting
Other Conferences: for the GFC Book was intended as a preliminary
Aside from the GFC series of conferences, five structured discussion for the GFC book on the
conferences were completed under the priority implications of the global crisis on Asia and policy
theme regional cooperation and integration. The recommendations for achieving sustainable and
events addressed such topics as the structural links inclusive growth.
among the US, the PRC, and Japan; market access

ADBI Dean Kawai and other panelists discuss social protection at ADBI’s Annual Conference in Tokyo.

Year in Review 2009

The Research department conducted three seminars in identifying threats of recession over short- and
in 2009. The first seminar, Impacts of the Global medium-term horizons in a quick manner as the input
Financial and Economic Crisis on Uzbekistan data, i.e., financial variables, are available in real-time.
and other Central Asian Countries by Mahmud
Hadjimetov, Counselor on Trade and Economic
Brown Bag Lunch Seminars
Affairs at the Embassy of the Republic of Uzbekistan
in Japan, discussed Uzbekistan’s experience in dealing The brown bag lunch (BBL) seminar series provides
with the global financial and economic crisis. The a platform for presenting researchers’ preliminary
second seminar, What is the Impact of the Global research ideas and findings in order to solicit comments
Financial Crisis on the Banking System in Asia?, from ADBI staff. In 2009, 14 BBLs were held (see
by Michael Pomerleano, Advisor to the Bank of Appendix 3 for the full list of BBL seminars).
Israel and an Economist at the World Bank, assessed
the impact of the global crisis on the Asian banking
Visiting Researcher Program
system using the standard framework of risk analysis
based on capital and reserves adequacy, asset quality, The ADBI Visiting Researcher Program is run
management earnings, liquidity, and sensitivity to competitively for researchers from ADB’s DMCs. In
market risk (CAMELS). The third seminar, Financial addition, ADBI engages a number of outstanding
Fragility and the Business Cycle: A Nonlinear VAR scholars from all ADB member countries as visiting
Analysis, by Fabio Fornari, Senior Economist at the fellows to participate in ADBI’s research activities. A
European Central Bank, discussed the potential of visiting researcher or fellow works on a topic of interest
vector autoregression (VAR)-augmented probit model that falls under one of ADBI’s three priority themes.

Research Highlights

Visiting Researcher Program, 2009

Names Country Institution

Visiting Fellows

Shin-ichi Fukuda Japan University of Tokyo

Robert F. Owen United States/France University of Nantes

Iwan Jaya Azis Indonesia Cornell University

Cielito F. Habito Philippines Ateneo de Manila University

Michael Pomerleano United States World Bank

Peter A. Petri United States Brandeis University

Visiting Scholars

Anita Giselle Doraisami Australia International Monetary Fund

Hiroyuki Ito Japan Portland State University

Kanda Naknoi Thailand Purdue University

Visiting Researchers

Bhim Adhikari Nepal University of Michigan

Jacob George India University of Delhi

Swapan Bhattacharya India Indian Institute of Public Administration

Prabir De India Research and Information System for Developing Countries (RIS)

Capacity Building and Training

n 2009, 30 courses and workshops management, financial and capital
were conducted under ADBI’s three market development, trade facilitation,
priority themes (Appendix 4). A total employment, environmentally sustainable
of about 1600 participants attended these growth, and Millennium Development
events. About 62% of the participants Goals (MDGs). Some of these activities
were government officials, half of whom are briefly described here.
held senior positions (director and
above). Efforts were made to incorporate More than 300 participants from 39
discussion of the impacts of the GFC countries in the Asia and Pacific region
on the Asia and Pacific region, country and globally participated in the 6 th
responses, and postcrisis development Microfinance Training of Trainers
policies into CBT ’s program where Course (MFTOT), offered from July to
applicable and appropriate. October. Among them, 244 participants
successfully completed the course, 174
of whom were accredited as certified
Inclusive and Sustainable
trainers; with the support of the African
Growth Development Bank, the course included
Nineteen activities were conducted under participants from Africa as well. In
the theme of inclusive and sustainable addition to the availability of learning
growth. These events addressed materials in Bahasa Indonesia, Chinese,
capacity building needs in the areas of Khmer (Cambodia), Lao, Mongolian,
PPPs in infrastructure, water resource Thai, and Vietnamese, the 6th MFTOT
Capacity Building and Training

The Workshop on Promoting Financial Inclusion

2009 CBT Participants Breakdown by Region
through Innovative Policies discussed approaches
Others to and exchanged country experiences on financial
Southeast Asia inclusion, focusing on six key areas: agent banking,
mobile banking, diversifying providers, reforming
public banks, financial identification, and consumer
South Asia
protection. Workshop participants found that
providing financial services through non-bank agents
Pacific helps to save costs and make the services more
convenient to use and access. As mobile phone usage
Central West Asia East Asia
expands to low income and rural groups, a range of
banking services, such as deposit taking, withdrawal,
and payment transactions, can be offered through
benefited from ADBI’s workshop on promoting mobile services. At the same time, lowering regulatory
financial inclusion through innovative policies that was barriers for start-up institutions promotes development
conducted earlier in the year. Emerging issues discussed of various financial products geared toward low-income
at the workshop were incorporated into the MFTOT clients. Many poor people, however, lack personal
videoconference program, including the impact of the identity (such as a birth record) or financial identity
global financial crisis on microfinance industries and (such as credit history), which constrains their access
the expansion of microfinance through mobile banking. to formal financial services. Various options were
discussed for developing identity, taking advantage of
IT innovations, and statistical analysis.

Year in Review 2009

More than 100 participants debated the causes of the global financial crisis and the implications for capital market
development in Asia at the ADBI-OECD Roundtable in March.

The OECD-ADBI 10 th Roundtable on Capital At the Employment in the Postcrisis Context

Market Reform in Asia brought together more conference organized in collaboration with the
than 100 policymakers and experts from Asia, the International Labour Organization’s International
Americas, and Europe to discuss the causes of the Institute for Labour Studies, policymakers discussed
GFC, and the impact on and implications for capital the adverse impact of the GFC on the labor market—
market development in Asia. The causes of the crisis especially for young people, immigrants, and low-
were discussed at different levels: inadequate financial skilled and temporary workers, who are bearing most
sector supervision contributed to a housing price of the brunt of the job losses—as well as the policy
bubble while financial innovation, deregulation, implications for unemployment insurance, social
and relaxation of residential underwriting standards protection, enterprise financing, and green growth. The
created the toxic products that were at the root of the conference called for exit strategies that minimize the
crisis. The discussion participants agreed that hedge crisis’ potential adverse impacts on existing jobs and
funds did not play a significant role, partly because reform of the social protection system that pays greater
their leverage was lower than often assumed. Instead, attention to improving vocational and entrepreneurial
the main sources of instability were found in the skills of low-skilled workers, SMEs, and micro-
highly regulated banking sector, where leverage was enterprises so they can take better advantage of growth
higher. Direct effects on Asia were small as emerging rebalancing strategies in Asia.
Asian banks had limited exposure to subprime losses
though the region experienced greater volatility in A regional workshop on Mainstreaming Climate
financial markets, exchange rates and equity markets as Change Adaptation into Developmental Planning
declining consumer demand in the US and Europe led had senior officials from the Asia and Pacific region’s
to significant drops in Asian exports. most vulnerable developing countries and small

Capacity Building and Training

island states exploring ways to better integrate opportunities, including technology transfer issues
adaptation measures into their development plans. and financing options. The participants discussed
The workshop identified the barriers to “effective energy efficiency approaches that integrate process level
mainstreaming” as insufficient scientific information, environmental systems and product labeling systems
lack of communication between the science and and encourage wider use of low carbon technologies.
policy communities, absence of a knowledge base on National innovation systems can promote indigenous
successful measures, and lack of funding. There is technologies through enabling market conditions and
therefore a need to i) maintain or even increase budget intellectual property regimes. Clean Development
support for scientific research and pilot projects, as well Mechanisms help generate capital for low carbon
as joint meetings between scientific and policymaking investment by creating a global trading market for
communities, and ii) share climate data and best policy certified emission reductions. Putting an appropriate
practices at the regional level. In addition, land use price on carbon through a carbon emission tax may
planning, water management planning, redesigning also promote investment in green technologies.
structural standards, and effective application of
environmental impact assessments methods could be The workshop on Eco-Industrial Clusters: Policies
applied as an entry point to integrate climate change and Challenges was held to discuss policy constraints
information into developmental planning. and strategies to transform industrial clusters into eco-
friendly economic zones. Eco-industrial clusters (EICs)
The workshop on Low Carbon Green Growth was are groups of interconnected companies that cooperate
held at the Asian Institute of Technology, where senior with each other and with the local community to
officials from large, Asian, carbon-emitting economies efficiently share resources. By maximizing the use of
explored renewable energy and energy efficiency resources through eco-efficiency approaches and the

Year in Review 2009

3Rs—reduce, recycle, reuse—policy, EICs offer greater share global PPP practices and lessons learned among
opportunities for SMEs to achieve both environmental PPP policymakers and program managers in order
and economic competitiveness. With appropriate to improve the design and implementation of PPP
social, technological, and financial support, EICs can programs, enhance access to and lower the cost of
promote synergies among downstream and upstream infrastructure service delivery. A number of country
businesses and foster sustainable development in the and sector case studies were prepared as inputs into the
urban fringe areas. Public policy measures that support MP3IC global learning products.
EICs include industrial policy that inspires innovation
and technology development, environmental policy
Regional Cooperation and
that focuses on resource conservation and emission
reduction, and regional development policy that seeks Integration
to stimulate necessary infrastructure investment. Four CBT activities were held under the theme
of regional cooperation and integration. They
As part of the Multilateral PPP for Infrastructure addressed development policies and issues related
Capacity Building (MP3IC) initiative ADBI has to and facilitated sharing of country experiences on
been implementing in collaboration with the World ROOs, international tax treaties, WTO sanitary and
Bank Institute and the Inter-American Development phytosanitary (SPS) measures, and competition policy
Bank Multilateral Investment Fund, five workshops and law. Brief summaries of a selection of these events
and seminars were organized in Asia and the Pacific to follow.

The Strengthening Governance for Infrastructure Service Delivery: The Role of Public Private Partnerships Symposium brought
together more than 40 global and regional governance experts and senior-level managers from public sector training
institutes in March.

Capacity Building and Training

A subregional workshop on Preferential Rules of Governance for Policies and

Origin (ROO) for South Asian Association for
Regional Cooperation (SAARC) members was
organized, in collaboration with ADB, United Nations Seven CBT activities were conducted to enhance
Conference on Trade and Development (UNCTAD), the effectiveness of government policies and their
ASEAN Secretariat, and the Ministry of Finance of implementation in the areas of PPP, competition
Japan. The workshop examined existing preferential policy, tax administration, journalism, and financial
ROO—such as the generalized system of preferences sector reform and regulation. Here are brief summaries
(GSP), ASEAN Free Trade Area, ASEAN-PRC, and of a selection of these events.
ASEAN-Japan—that are directly relevant to their
respective signatory members as well as the role of The 3 rd ASEAN Experts Group on Competition
ROO in FTA implementation. ROO experts and training workshop on Costs and Benefits of
participants explored ways to improve South Asian Competition Policy, Law, and Regulatory Bodies
Free Trade Area (SAFTA) ROO to further facilitate was jointly organized by ADBI, the US Federal Trade
crossborder trade within and outside the SAARC Commission, and the ASEAN Secretariat. Thirty-
region, and identified a set of recommendations to be two senior officials from ASEAN competition and
put to SAARC members for their consideration. related authorities and agencies as well as the ASEAN
Secretariat participated in the workshop, which focused
ADBI, the Japan Fair Trade Commission, and the on issues, tools, methodology, and country experiences
Authority for Fair Competition and Consumer on assessment of the costs and benefits of competition
Protection of Mongolia, jointly organized the 5th East policy and law; design of effective competition law;
Asia Conference on Competition Law and Policy efficiency of competition regulatory bodies; challenges
and 5th Top-Level Officials Meeting on Competition for better regulatory management for small and
Policy to promote sharing of country experiences in developing economies; and generating evidence to
establishing and implementing competition policy guide merger enforcement.
and laws, and promoting competition advocacy in
their respective economies. Approximately 140 experts A regional workshop on the Challenges in the
and senior officials on competition policy attended Implementation of Competition Law that was
the conference and meeting from eleven East Asian jointly organized by ADBI, ASEAN Secretariat, and
economies. the Department of Internal Trade of Thailand brought

Year in Review 2009

together more than 50 middle-senior officials from from eight Southeast Asian countries participated in
competition or related agencies in ASEAN countries, the seminar. Participants discussed and explored ways
PRC, Mongolia, India, Pakistan, and Sri Lanka to to establish an effective e-filing and payment system,
exchange their views and experiences on advocacy, including financial and human resource requirements.
enforcement, drafting of competition law, and Such a system would be expected to bring a set of
institutional capacity building with experts from the benefits to both taxpayers and tax administrations, such
US, Japan, Australia, United Kingdom, and Germany. as time-saving, cost effectiveness, accuracy, increase of
The workshop found that: i) raising public awareness productivity, and safety.
facilitates information gathering; ii) combined financial
and individual sanctions, backed by strong leniency The 2009 Developing Asia Journalism Awards
policy, are effective in deterring future violation of (DAJA) and Training brought 22 journalist-finalists
competition law; and iii) engaging and retaining the to Tokyo for a four-day training workshop and
right talent, leveraging on technology, streamlining awards ceremony. Participants from across Asia were
procedures, and regular training are institutional able to meet with experts on DAJA’s four themes
requirements for effective competition enforcement. for 2009: i) the poverty impact of the GFC, ii)
government responses to the GFC, iii) infrastructure
The Tax Administration Seminar VI was held in development, and iv) climate change adaptation. Top
cooperation with Japan’s National Tax Agency and the journalists from the Philippines and India won the
Vietnamese General Department of Taxation. Twenty- titles of Development Journalist of the Year and Young
four tax administrators as well as thirteen observers, Development Journalist of the Year, respectively.

Development journalists tackled the financial crisis and climate change in the 2009 DAJA competition.
Capacity Building and Training

Post-Event Survey
In 2009, post-event surveys were conducted with CBT
events participants from 2008 in order to assess the
impacts and application of knowledge gained from the
events as well as to seek participants’ suggestions for
future issues. The survey results showed that more than
80% of the participants rated the impact of CBT events
on their personal career development as significant
to very significant. About 70% of respondents
indicated significant to very significant impact on their
organizations. After the events, participants usually
shared their course materials with others and spoke at
internal seminars on issues related to the CBT activities
that they had attended. Some of them also spoke at
local seminars on issues related to the event or wrote
an article or report about the event. Most participants
applied the knowledge gained from CBT activities to
improve the productivity of their day-to-day work,
align national practices to best practices, and improve
the effectiveness of their policy implementation. In
terms of constraints in the application of knowledge,
40% of respondents indicated that the application
requires facilities or equipment they do not have. A few
others cited the lack of time due to other obligations/
duties and the sophistication of concept/technique.

When asked about their post-event activities, about

85% of participants continued to network with
each other after the events they attended, mainly to
share country-specific information and foster closer
cooperation. About 60% of participants kept in touch
with some resource speakers to seek their advice,
including updates and suggestion of other experts on
relevant issues. Study participants suggested topics
for future activities that range from water resources
management, climate change, PPP in infrastructure,
and ROOs to competition policy, regional cooperation,
poverty reduction, and human rights.

Outreach Highlights

DBI continued to enhance its and Recommendations for East Asian
outreach activities to reach target Leaders for G20 Meeting. Over 40
audiences of policymakers, journalists attended the conference and
academics, think tanks, and the private the story was picked up by news wires
sector. The institution has improved the and international newspapers.
quality of its publications by stringently
f o l l ow i n g i t s n e w l y s t r e n g t h e n e d ADB’s four knowledge departments
publications guidelines. (ADBI, ERD, OREI, and RSDD)
have closely coordinated their work
ADBI expanded its outreach program programs to improve synergy in their
using the media in Japan and knowledge creation efforts. ADBI staff
internationally. A series of nine interviews join the meetings of ADB’s knowledge
with ADBI’s dean were published in m a n a g e m e n t c o o rd i n a t o r s . A D B I
the Japanese language newspaper, Asahi l e d t h e p re p a r a t i o n , p u b l i c a t i o n ,
Shimbun. The dean was also interviewed and dissemination effor ts of ADB
b y J a p a n’s N H K t e l e v i s i o n a n d headquarters’ and ADBI’s collaborative
Bloomberg on the subject of the GFC. In flagship study, Infrastructure for a
March, a press conference was held at the Seamless Asia. The prepublication
Foreign Correspondents’ Club of Japan version of the book was launched at
to launch two reports: Recommendations ADB’s annual meeting in May 2009,
of Policy Responses to the Global and disseminated at several external
Financial Crisis for East Asian Leaders (non-ADBI) events and at workshops
Outreach Highlights

in Cambodia, Canada, Japan, and the US. ADBI is increase of more than 20% over 2008. In addition to
collaborating with OREI on a project on the impact of online publishing, the website is used as an advertising
free trade agreements on business in Asia, the output tool for ADBI employment and business opportunities,
of which will be a book to be copublished with a online registration for events, and article submissions
commercial publisher. for the 2009 DAJA program, for which over 250
journalists from DMCs registered for the 2009 event
ADBI’s website is the key dissemination tool for and submitted some 200 articles. Technical reports
ADBI’s knowledge products and underpins ADBI’s of web hits, number of downloads, and user statistics
communication strategy. Website traffic continues are disseminated to staff each month to encourage
to grow as the site is regularly updated with new awareness of the website as a dissemination tool.
research publications, event announcements, and CBT Authors are informed when their papers and books are
workshop papers and presentations. In 2009, successful posted online and ADBI encourages them to share this
web hits averaged over 2 million per month, an information with their colleagues and networks.

Hits and Page Views, 2009

3,000,000 1,000,000

Number of Successful Hits 900,000


Page Views

1,500,000 500,000
1,000,000 Page Views for Month
0 0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Visitors and User Sessions, 2009

200,000 60,000

150,000 Unique Visitors
Total User Sessions

Unique Visitors


100,000 30,000

Total User Sessions 20,000


0 0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Year in Review 2009

In 2009, e-newsline, ADBI’s daily e-newsletter ADB headquarters’ and ADBI’s flagship book,
of development news, reached more than 3,700 Infrastructure for a Seamless Asia, was formally
subscribers, a 10% increase over 2008. ADBI’s launched at ADB’s annual meeting in May. Other
e-notification service, which sends out electronic books published were: ADBI Year in Review: 2008,
updates on new ADBI materials and opportunities, Asia’s Contribution to Global Economic Development
had over 5,800 subscribers (an increase of 16%). and Stability from the 2008 ADBI annual conference,
and Infrastructure’s Role in Lowering Asia’s Trade
Participating in external events is an effective Costs: Building for Trade, copublished with Edward
way to promote ADBI’s work in the region and Elgar, this is ADBI’s first commercially copublished
internationally. The dean, as the key spokesperson book to be posted online as a read-only file, and was
for ADBI, was an invited speaker at nearly 40 events, made available for free download after 12 months.
and ADBI staff were invited to speak at many other
external events. Staff attendance at high-level events Eleven ADBI working papers were published or
provides opportunities to build partnerships with well accepted for publication in international journals. The
known academics and policymakers, thus giving ADBI average number of downloads from ADBI’s website per
greater visibility and more recognition. month was more than 72,000, showing that ADBI’s
publications reach a large audience. An example of the
value of the website as a dissemination tool for ADBI’s
products is the number of times Infrastructure for a
In 2009, ADBI circulated 53 papers under its working Seamless Asia book was downloaded—51,000 times
paper series. Three research policy briefs and one from when it was first published on 15 September until
research paper were also published and disseminated. 31 December.

ADBI Dean Masahiro Kawai, Thailand’s Chalangphob Sussangkarn, and PRC’s Zhang Yunling address the press at the Foreign
Correspondents’ Club of Japan to present the Asian Policy Forum’s recommendations ahead of the G20 meeting.

Outreach Highlights

E-newsline and E-notification Subscribers, 2009

6,000 4,000
Total Number of
E-newsline Subscribers

E-newsline Subsciribers
5,500 3,500
E-notification Subsciribers

Total Number of
5,000 E-notification Subscribers 3,000

4,500 2,500

4,000 2,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Number of Downloads by Month, 2009


120,000 117,826

100,000 93,696
81,875 82,905
80,000 74,689
74,689 71,416
60,664 63,274 63,707


Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

The CBT depar tment produced a CD-ROM, Conferences, Seminars, and

Mainstreaming Climate Change Adaptation into Workshops
Developmental Planning, which is a compilation of ADBI’s research outreach activities in 2009 included
papers and presentations from a workshop held in 61 conferences, seminars, and workshops, most of
April 2009. The CD-ROM was produced primarily for which were jointly organized with other institutions.
disseminating to workshop participants; copies have Research activities in 2009 focused on the GFC with
been sent to more than 40 members of the public who 22 events held on that topic. These events provided a
requested a copy. platform for debate on emerging development issues
in the region, and were aimed at soliciting comments
on the preliminary drafts of ADBI’s research outputs
as part of ADBI’s research quality-control mechanisms
and dissemination.

Appendix 1: Organization Chart

Dean Advisory Council

Masahiro Kawai Masahiko Aoki Eric Girardin
K. M. Chandrasekhar Andrew MacIntyre
Victor H. Frank, Jr. Jong-Wha Lee
Gang Fan

Research Capacity Building Administration, Management,

and Training and Coordination

Director Director
Mario B. Lamberte Manupipatpong Takashi Kihara
Lead Professional
and Special
Advisor to Dean
Biswa Nath Principal
Bhattacharyay Senior Capacity Communications
Senior Research Fellow
Building Specialist Specialist
Willem Thorbecke
Elaine Glennie Ainslie Smith

Legal Advisor
Research Fellow Senior Capacity
and Senior
Building Specialist Administrative Officer
Gloria Pasadilla
David Kruger Grant Stillman

Senior Capacity Administrative Officer

Research Fellow
Building Specialist
Doo Yong Yang Toshimasa Mae
Teruo Ujiie

Capacity Building
Senior Consultant for
Peter Morgan

Visiting Fellows and

Senior Consultant for
Capacity Building
Shin-ichi Fukuda John West
Robert Owen
(United States) Japan Water
George Jacob Agency Representative
(India) Tadashige Kawasaki
Iwan Azis

(as of 31 December 2009)

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 2003–January 2007 Australia

Masaru Yoshitomi January 1999–January 2003 Japan

Jesus P. Estanislao December 1997–January 1999 Philippines

Table A2.2: Advisory Council Members, 1998 to Present

Regional Borrowing Regional Non-Borrowing
Non-Borrowing ADB
Member Countries Member Countries
Member Countries
2008–2010 K. M. Chandrasekhar Masahiko Aoki Victor H. Frank, Jr.
(India) (Japan) (US)*
Jong-Wha Lee
Chief Economist
Gang Fan Andrew MacIntyre Eric Girardin
(PRC) (Australia) (France)

2006–2008 Li Yong Masahiko Aoki Victor H. Frank, Jr.

(PRC) (Japan) (US)
Ifzal Ali
Chief Economist
Ajit K. Jain Andrew Maclntyre Eric Girardin
(India) (Australia) (France)

2004–2006 Li Yong Masahiko Aoki William P. Fuller

(PRC) (Japan) (US)
Ifzal Ali
Chief Economist
Corattiyil Ramachandran Kanit Sangsupan Eric Girardin
(India) (Thailand) (France)

2002–2004 N. C. Saxena Yujiro Hayami William P. Fuller

(India) (Japan) (US)
Ifzal Ali
Chief Economist
Zhang Xiaoqiang Ronald Charles Duncan Magnus Blomström
(PRC) (Australia) (Sweden)

2000–2002 Y. Venugopal Reddy Yujiro Hayami William P. Fuller

(India) (Japan) (US)
Arvind Panagariya
Chief Economist
Zhang Xiaoqiang Ronald Charles Duncan Magnus Blomström
(PRC) (Australia) (Sweden)

1998–2000 Justin Yifu Lin Yonosuke Hara Jeffrey R. Shafer

(PRC) (Japan) (US)
Jungsoo Lee
Chief Economist
Chandi Chanmugam Helen Hughes Fabrizio Onida
(Sri Lanka) (Australia) (Italy)

* Victor H. Frank, Jr. passed away in April of 2010.

Appendix 3: Brown Bag Lunches

Presentation Title Speaker Title and Affiliation

Market-Based Approaches to Environmental

1 Management: Lessons from Payment for Bhim Adhikari Research Fellow, The University of Michigan
Environmental Services in Asia

Enriching Growth-Poverty Elasticity Analysis in Asia:

Director of Ateneo Center for Economic Research
2 What Guidance Might It Offer in Dealing With the Cielito Habito
and Development, Ateneo de Manila University
Global Financial Crisis?

Impact of Globalization on Employment and

Senior Fellow, National Council of Applied Economic
3 Poverty Reduction in India: The Case of Shopping Kanhaiya Singh
Malls and Retailers

4 The Global Financial Crisis Michael Pomerleano Lead Financial Specialist, The World Bank

Applying the Lessons of Asia: The IMF’s Crisis

5 Shinji Takagi Professor of Economics, Osaka University
Management Strategy in 2008

Regional Infrastructure and Governance in Fellow, Research and Institution System for
6 Prabir De
Institutions: Evidence from Asia Developing Countries

Foreign Direct Investment, Institution Quality, and

7 Kanda Naknoi Assistant Professor of Economics, Purdue University
Bilateral Investment Treaties

An Empirical Analysis of ASEAN’s Labor-Intensive Senior Research Fellow, Asian Development Bank
8 Willem Thorbecke
Exports Institute

Governance and Regional Integration in Asia from

9 Robert Owen Professor of Economics, University of Nantes
a Global Perspective: Some Preliminary Insights

Regional Economic Integration among South Asian

Associate Professor of International Trade, Indian
10 Economies: Measuring Impact of South Asian Free Swapan Bhattacharya
Institute of Public Administration
Trade Area

Fiscal Policy Response to Global Financial Crisis

11 in Selected Asian Developing Economies: Some Anita Doraisami International Monetary Fund
Challenges and Policy Implications

Brain Drain, Brain Gain and Brain Waste: Conceptual

12 Robert Owen Professor of Economics, University of Nantes
and Policy Issues

Cross-border Investment Linkage among APEC

Senior Analyst, APEC Policy Support Unit, APEC
13 Economies : The Case of Portfolio Investment and Hyun-Hoon Lee
Bank Lending

Regional Economic Integration among South Asian

Associate Professor of International Trade, Indian
14 Economies: Measuring Impact of South Asian Free Swapan Bhattacharya
Institute of Public Administration
Trade Area

Appendix 4: CBT Events

Number of Participants in Capacity Building and Training Activities, 2009

Date Course or Workshop Event Location

Inclusive and Sustainable Growth

18–25 Feb 5th Integrated Water Resources Management Training 24 Hoi An, Viet Nam

2–3 Mar OECD–ADBI 10th Roundtable on Capital Market Reforms in Asia 67 Tokyo

31 Mar–3 Apr Promoting Financial Inclusion through Innovative Policies 24 Tokyo

14–17 Apr Mainstreaming Climate Change Adaptation into Developmental Planning 22 Tokyo

19–21 May Knowledge Sharing on Infrastructure Public-Private Partnerships in Asia 71 Seoul

23–25 Jun Public-Private Partnership for Infrastructure in China 77 Qingdao, PRC

24-Jun Exploring New Challenges in IWRM 17 Singapore

25-Jun Water Security in the Asia–Pacific Region 31 Singapore

Strengthening Public–Private Partnership for Infrastructure Investment

2–3 Jul 60 Ulaanbaatar
in Mongolia

2–4 Jul Water Governance 38 Singapore

15–18 Sep Opportunities and Priorities for Low Carbon and Green Growth in Asia 37 Bangkok

Advanced Geographical Information System and Satellite Information for

11-Oct 75 Manila
the Benefit of Asia

Financing and Managing Risks in PPPs at the National and Subnational

21–27 Oct 31 Melbourne, Australia
Government Level

Jul–Nov Microfinance Training of Trainers 326 Tokyo

4–6 Nov Aligning Development Policies and Strategies to Achieve MDGs in South Asia 46 Katmandu

11–18 Nov 6th Integrated Water Resources Management Training 20 Viet Nam

15–17 Dec Employment in the Postcrisis Context 25 Tokyo

16–17 Dec MP3IC Knowledge Sharing Symposium 146 Manila

8–11 Dec Eco-Industrial Clusters: Policies and Challenges 42 Tokyo

Regional Cooperation and Integration

23–26 Feb Preferential Rules of Origin for SAARC members 23 Colombo

East Asia Conference and Top Level Officials Meeting on Competition Law
29–30 Jun 99 Ulaanbaatar
and Policy

8–11 Sep WTO SPS Measures 28 Bangkok

3–6 Nov Intensive Course on International Tax Treaties 25 Tokyo

Year in Review 2009

Date Course or Workshop Event Location

Governance for Policies and Institutions

Strengthening Governance for Infrastructure Service Delivery:

9–11 Mar 37 Manila
The Role of Public and Private Partnerships

18–19 May Costs and Benefits of Competition Policy, Law, and Regulatory Bodies 30 Kuala Lumpur

Tax Administration Seminar VI: Taxpayer Services Focusing on E–filing and

23–25 Jun 37 Ha Noi

21–23 Jul Financial Sector Reforms and Regulations 27 Tokyo

24–26 Aug The Economics of Monopoly/Dominance 38 Da Lat, Viet Nam

20–23 Oct Developing Asia Journalism Awards 2009 22 Tokyo

11–12 Nov Challenges in the Implementation of Competition Law 37 Bangkok

Total 1,582

Appendix 5: Selected ADBI Publications

ADB and ADBI. 2009. Infrastructure for a Seamless Asia. Tokyo: ADBI.
ADBI. 2009. ADBI: Year in Review. Tokyo: ADBI.
Brooks, D. H., and D. Hummels, eds. 2009. Infrastructure’s Role for Lowering Trade Costs: Building for Trade.
Cheltenham, United Kingdom: Edward Elgar.
Kawai, M., and S. Stone, eds. Asia’s Contribution to World Economic Growth and Stability. Tokyo: ADBI.

Working Papers
Anna Strutt, Susan Stone
Transport Infrastructure and Trade Facilitation in the Greater Mekong Subregion
Working Paper 130, January
Juzhong Zhuang, Fan Zhai
Agricultural Impact of Climate Change: A General Equilibrium Analysis with Special Reference to Southeast Asia
Working Paper 131, February
Ying-Yi Tsai
Strategic Choice of Freight Mode and Investments in Transport Infrastructure within Production Networks
Working Paper 132, March
Renato E. Reside, Jr.
Global Determinants of Stress and Risk in Public-Private Partnerships (PPP) in Infrastructure
Working Paper 133, March
Bhim Adhikari
Market-Based Approaches to Environmental Management: A Review of Lessons from Payment for Environmental Services
in Asia
Working Paper 134, March
Hyungpyo Moon
Demographic Changes and Pension Reform in the Republic of Korea
Working Paper 135, April
Masahiro Kawai, Ganeshan Wignaraja
The Asian “Noodle Bowl”: Is It Serious for Business?
Working Paper 136, April
Masahiro Kawai, Fan Zhai
PRC-Latin America Economic Cooperation: Going beyond Resource and Manufacturing Complementarity
Working Paper 137, April
Biswa Bhattacharyay
Infrastructure Development for ASEAN Economic Integration
Working Paper 138, May
Sununtar Setboonsarng, Jun Sakai, Lucia Vancura
Food Safety and ICT Traceability Systems: Lessons from Japan for Developing Countries
Working Paper 139, May

Year in Review 2009

Biswa Bhattacharyay, Prabir De

Restoring the Asian Silk Route: Toward an Integrated Asia
Working Paper 140, June
Susan Stone, Ginalyn Komoto
Determining Poverty Impacts on Lao People’s Democratic Republic and Cambodia: Reconciling Household and GTAP Data
Working Paper 141, July
Barry Bosworth, Aaron Flaaen
America’s Financial Crisis: The End of an Era
Working Paper 142, July
Daisuke Hiratsuka, Hitoshi Sato, Ikumo Isono
Impacts of Free Trade Agreements on Business Activity in Asia: The Case of Japan
Working Paper 143, July
Masahiro Kawai, Ganeshan Wignaraja
Asian FTAs: Trends and Challenges
Working Paper 144, August
Cielito F. Habito
Patterns of Inclusive Growth in Developing Asia: Insights from an Enhanced Growth-Poverty Elasticity Analysis
Working Paper 145, August
Michael Pomerleano
What Is the Impact of the Global Financial Crisis on the Banking System in East Asia?
Working Paper 146, August
Dong Chul Cho
The Republic of Korea’s Economy in the Swirl of Global Crisis
Working Paper 147, August
Shankaran Nambiar
Malaysia and the Global Crisis: Impact, Response, Rebalancing Strategies
Working Paper 148, August
Ira S. Titiheruw, Raymond Atje
Malaysia and the Global Crisis: Impact, Response, Rebalancing Strategies
Working Paper 149, August
Souvik Gupta, Jacques Miniane
Recessions and Recoveries in Asia: What Can the Past Teach Us about the Present Recession?
Working Paper 150, September
Amir Akmar Basir
Payment Systems in Malaysia: Recent Developments and Issues
Working Paper 151, September
Masahiro Kawai, Fan Zhai
The People’s Republic of China-Japan-United States Integration Amid Global Rebalancing: A Computable General
Equilibrium Analysis
Working Paper 152, October

Appendix 5: Selected ADBI Publications

Masahiro Kawai, Shinji Takagi

Why was Japan Hit So Hard by the Global Financial Crisis?
Working Paper 153, October
Somchai Jitsuchon, Chalongphob Sussangkarn
Thailand’s Growth Rebalancing
Working Paper 154, October
Marie Mondeil, Sununtar Setboonsarng
Enhancing Biodiversity Through Market-Based Strategy: Organic Agriculture
Working Paper 155, October
Inkyo Cheong, Jungran Cho
The Impact of Free Trade Agreements (FTAs) on Business in the Republic of Korea
Working Paper 156, October
Masahiro Kawai, Peter Petri, Elif Sisli-Ciamarra
Asia in Global Governance: A Case for Decentralized Institutions
Working Paper 157, October
Chad Bown, Rachel McCulloch
US-Japan and US-PRC Trade Conflict: Export Growth, Reciprocity, and the International Trading System
Working Paper 158, November
Judith M. Dean, Mary E. Lovely, Jesse Mora
Decomposing PRC-Japan-US Trade: Vertical Specialization, Ownership, and Organizational Form
Working Paper 159, November
Willem Thorbecke
An Empirical Analysis of East Asian Computer Exports
Working Paper 160, November
Theresa M. Greaney, Yao Li
Assessing Foreign Direct Investment Relationships Between Japan, the People’s Republic of China, and the United States
Working Paper 161, November
Ming Lu, Hong Gao
When Globalization Meets Urbanization: Labor Market Reform, Income Inequality, and Economic Growth in the People’s
Republic of China
Working Paper 162, November
Peter Morgan
The Role and Effectiveness of Unconventional Monetary Policy
Working Paper 163, November
Rajiv Kumar and Pankaj Vashisht
The Global Economic Crisis: Impact on India and Policy Responses
Working Paper 164, November
Lars Jonung
Financial Crisis and Crisis Management in Sweden: Lessons for Today
Working Paper 165, November

Year in Review 2009

Willem Thorbecke
An Empirical Analysis of ASEAN’s Labor-Intensive Exports
Working Paper 166, November
Masahiro Kawai
Reform of the International Financial Architecture: An Asian Perspective
Working Paper 167, November
Axel Börsch-Supan, Alexander Ludwig
Old Europe Ages. Can It Still Prosper?
Working Paper 168, November
Shuji Uchikawa
Small- and Medium- Enterprises in Japan: Surviving the Long-Term Recession
Working Paper 169, November
Saori N. Katada
Political Economy of East Asian Regional Integration and Cooperation
Working Paper 170, December
Brian Rankin Staples, Jeremy Harris
Origin and Beyond: Trade Facilitation Disaster or Trade Facilitation Opportunity?
Working Paper 171, December
Ram Upendra Das
Imperatives of Regional Economic Integration in Asia in the Context of Developmental Asymmetries: Some Policy
Working Paper 172, December
Jonathan A. Batten, Warren P. Hogan, Peter G. Szilagyi
Foreign Bond Markets and Financial Market Development: International Perspectives
Working Paper 173, December
Yasuyuki Todo, Weiying Zhang, Li-An Zhou
Knowledge Spillovers from FDI in the People’s Republic of China: The Role of Educated Labor in Multinational Enterprises
Working Paper 174, December
Alyson Ma, Ari Van Assche, Chang Hong
Global Production Networks and the People’s Republic of China’s Processing Trade
Working Paper 175, December
Larry D. Wall
Prudential Discipline for Financial Firms: Micro, Macro, and Market Structures
Working Paper 176, December
Prema-chandra Athukorala, Archanun Kohpaiboon
Intra-Regional Trade in East Asia: The Decoupling Fallacy, Crisis, and Policy Challenges
Working Paper 177, December
Pier Carlo Padoan
Fiscal Policy in the Crisis: Impact, Sustainability, and Long-Term Implications
Working Paper 178, December

Appendix 5: Selected ADBI Publications

Barry Eichengreen
Lessons of the Crisis for Emerging Markets
Working Paper 179, December
Xiangfeng Liu
Impacts of the Global Financial Crisis on Small- and Medium-Enterprises in the People’s Republic of China
Working Paper 180, December
Soyoung Kim, Doo Yong Yang
International Monetary Transmission and Exchange Rate Regimes: Floaters vs. Non-Floaters
Working Paper 181, December
Mark M. Spiegel
Developing Asian Local Currency Bond Markets: Why and How?
Working Paper 182, December

Research Policy Briefs

Peter Morgan
Unregulated Entities, Products, and Markets: Challenges for Monitoring and Regulation
Research Policy Brief 30, August
Yung Chul Park
The Global Economic Crisis and Rebalancing Growth in East Asia
Research Policy Brief 31, December
Shinji Takagi
The Global Financial Crisis and Macroeconomic Policy Issues in Asia
Research Policy Brief 32, December

Research Papers
Bruno Rocha
At Different Speeds: Policy Complementarities and the Recovery from the Asian Crisis
Research Paper 74, July

ADBI. 2009. Mainstreaming Climate Change Adaptation into Developmental Planning. Tokyo.

Book Chapters, Articles in Refereed Journals

Anbumozhi, V., T. Gunjima, A. Prem Nath, and C. Viswanathan. 2009. An Assessment of Inter-Firm Networks in
a Wood Industrial Cluster: Lessons for Integrated Policy Making. Journal of Clean Technology and Environmental
Policy 11: 12–24.
Bhattacharyay, B. 2009. Achieving an Integrated ASEAN Economic Community: The Role of Infrastructure
Development. In ASEAN Economic Community Blueprint, edited by the ASEAN Studies Centre, Institute of
Southeast Asian Studies. Report No. 4. Singapore.

Year in Review 2009

———. 2009. Infrastructure Connectivity for East Asia’s Economic Integration. In Economics of East Asian Economic
Integration, edited by M. Fujita, I. Kuroiwa, and S. Kumagai. Cheltenham, United Kingdom: Edward Elgar.
———. 2009. Towards a Macroprudential Surveillance and Remedial Policy Formulation System for Monitoring
Financial Crisis. CESIfo WP No. 2803. Munich, Germany: University of Munich.
Bhattacharyay, B., D. Dlugosch, B. Kolb, K. Lahiri, I. Mukhametov, and G. Nerb. 2009. Early Warning System for
Economic and Financial Risks in Kazakhstan. CESIfo WP No. 2832. Munich, Germany: University of Munich.
Garcia-Herrero, A., P. Wooldridge, and D. Y. Yang. 2009. Why Don’t Asians Invest in Asia? The Determinants of
Cross-Border Portfolio Holdings. Asian Economic Papers 8(3): 228–246.
Karasulu, M. and D. Y. Yang, eds. 2009. Ten Years After the Korean Crisis: Crisis, Adjustment and Long-term Economic
Growth. Seoul: KIEP, and Washington, DC: IMF.
Kawai, M. 2009. An Asian Currency Unit for Regional Exchange-Rate Policy Coordination. In Fostering Monetary
and Financial Cooperation in East Asia, edited by D. K. Chung and B. Eichengreen. Singapore: World Scientific.
———. 2009. Can Tokyo Become a Global Financial Centre? In Competition among Financial Centres in Asia-Pacific:
Prospects, Benefits, Risk and Policy Challenges, edited by S. Young, D. Choi, J. Seade, and S. Shirai. Singapore:
Institute of Southeast Asian Studies.
———. 2009. The Role of an Asian Currency Unit. In Towards Monetary and Financial Integration in East Asia,
edited by K. Hamada, B. Reszat, and U. Volz. Cheltenham and Northampton: Edward Elgar.
———. 2009. Time to Step Forward: Asia’s Role in a New Global Financial Architecture. Global Asia (October):
———. 2009. Why Asia Needs Its Own Monetary Fund. The Euromoney Asia-Pacific Capital Markets Handbook
2010 (October): 17–19.
Kawai, M., and M. Pomerleano. 2009. Financial Stability Regulator. Financial Times Economists’ Forum. 28 August.
Available: http://blogs.ft.com/economistsforum/2009/08/bolstering-financial-stability-regulation/.
———. 2009. International Financial Stability Architecture for the 21st Century. Financial Times Economists’
Forum. 1 August. Available: http://blogs.ft.com/economistsforum/2009/08/international-financial-stability-
Kawai, M., and P. B. Rana. 2009. The Asian Financial Crisis Revisited: Lessons, Reponses and New Challenges. In
Lessons from the Asian Financial Crisis, edited by R. Carney. Abingdon and New York: Routledge.
Kawai, M., and G. Wignaraja. 2009. Global and Regional Economic Integration: A View from Asia. Integration and
Trade 29(13) (January–June): 35–46.
———. 2009. Multilateralizing Regional Trade Arrangements in Asia. In Multilateralizing Regionalism, edited by R.
Baldwin and P. Low. New York: Cambridge University Press.
———. 2009. Tangled up in Trade? The “Noodle Bowl” of Free Trade Agreements in East Asia. 15 September.
Available: http://www.voxeu.org/index.php?q=node/3979.
Kawai, M., and F. Zhai. 2009. China-Japan-United States Integration amid Global Rebalancing: A Computable
General Equilibrium Analysis. Journal of Asian Economics 20:(6) (November): 688–699.
Kim, S., and D. Y. Yang. 2009. The Impact of Capital Inflows on Emerging Asian Economies: Is Too Much Money
Chasing Too Little Good? Open Economies Review. Available: http://www.springerlink.com/content/n43248510r5

Appendix 5: Selected ADBI Publications

———. 2009. Do Capital Flows Matter to Asset Prices? Asian Economic Journal 23(3): 323–348.
Kwark, N. S., C. Rhee, and D. Y. Yang. 2009. Crisis, Adjustment, and Long-run Economic Growth in Korea. In Ten
Years after the Korean Crisis: Crisis, Adjustment and Long-Term Economic Growth, edited by M. Karasulu and D. Y.
Yang. Seoul: KIEP, and Washington, DC: IMF.
Lamberte, M. B., and M. C. Manlagñit. 2009. The Impact of Women Membership and Employees on the Severity
of Agency Conflicts in Philippine Cooperative Credit Unions. Canadian Journal of Development Studies 29 (1–2):
Liu, X., and V. Anbumozhi. 2009. Determinant Factors of Corporate Environmental Information Disclosure: An
Empirical Study of Chinese Listed Companies. Journal of Cleaner Production 17: 593–600.
Pasadilla, G., ed. 2009. How to Access Trade Finance: A Guide for Exporting SMEs. Geneva, Switzerland: International
Trade Centre.
Thorbecke, W. 2009. Trade Interdependence and Exchange Rate Coordination in Asia. In Monetary, Exchange Rate
and Financial Issues and Policies in Asia, edited by R. S. Rajan, S. M. Thangavelu, and R. A. Parinduri. Singapore:
World Scientific Press.
———. 2009. Reducing Global Imbalances: Perspectives from the United States and from Asia. Fiducie 17(1):
Thorbecke, W., and H. Zhang. 2009. The Effect of Exchange Rate Changes on China’s Labor-Intensive
Manufacturing Exports. Pacific Economic Review 14: 398–410.
———. 2009. Monetary Policy Surprises and Long-Term Interest Rates: Choosing between the Inflation-Revelation
and Excess Sensitivity Hypotheses. Southern Economic Journal 75: 1114–1122.
Van Ha, N.T., C. Visvanathan, and V. Anbumozhi. 2009. Techno Policy Aspects and Socio-Economic Impacts of
Eco-Industrial Networking in the Fishery Sector: Experiences from An Giang Province, Vietnam. Journal of
Cleaner Production 17: 1272–1280.
Yang, D. Y., D. Park, and Y. M. Ju. 2009. Population Aging and International Capital Flows. KukJe Kyungje Yunku
15(1): 25–53.
Zhai, F., T. Lin, and E. Byambadorj. 2009. A General Equilibrium Analysis of the Impact of Climate Change on
Agriculture in the People’s Republic of China. Asian Development Review 26(1): 206–225.

Appendix 6: Top 30 Downloads of 2009

ADBI Top Downloads 2009 Year Category

1 Infrastructure for Seamless Asia 2009 Book

2 How to Draft a Project Proposal 2005 Conference materials

3 Asian FTAs: Trends and Challenges 2009 Working paper

4 Infrastructure’s Role In Lowering Asia’s Trade Costs: Building for Trade 2009 Book

5 Prepare Project Proposals 2005 Conference materials

6 Credit Rating Agencies 2004 Conference materials

7 NGO Law and Governance 2007 Book

8 Corporate Governance in Asia 2005 Book

9 ADBI Three-Year Rolling Work Program 2009–2011 and Budget for 2009 2008 Key documents

10 Post-Crisis Development Paradigm 2003 Book

11 Transport Infrastructure and Trade Facilitation in the Greater Mekong Subregion 2009 Working paper

12 Using Macroeconomic Computable General Equilibrium Models for Assessing Poverty Impact 2004 Discussion paper
of Structural Adjustment Politics

13 Enhancing Corporate Social Responsibility in Asia 2007 Conference materials

14 Results-Based Management Workbook 2005 Book

15 Successful Wastewater Management in Singapore 2004 Conference materials

16 The Global Economic Crisis: Impact on India and Policy Responses 2009 Working paper

17 Global Determinants of Stress and Risk in Public-Private Partnerships (PPP) in Infrastructure 2009 Working paper

18 Restoring the Asian Silk Route: Toward an Integrated Asia 2009 Working paper

19 Patterns of Inclusive Growth in Developing Asia: Insights from an Enhanced Growth-Poverty 2009 Working paper
Elasticity Analysis

20 Impacts of Free Trade Agreements on Business Activity in Asia: The Case of Japan 2009 Working paper

21 The Republic of Korea’s Economy in the Swirl of Global Crisis 2009 Working paper

22 Managing Capital Flows: Viet Nam 2008 Discussion paper

23 Corporate Governance in Asia: Recent Evidence from Indonesia, Republic of Korea, Malaysia, 2005 Book
and Thailand

24 Public-Private Partnerships in the Social Sector: Issues and Country Experiences in Asia and 2000 Book
the Pacific

25 The Political Ecology of Famine: The North Korean Catastrophe and Its Lessons 2002 Research paper

26 Risk Management Accounting 2004 Conference materials

27 100 Tips 100 Tools for NGO 2007 Book

28 ASEAN Logistics Network Map 2006 Conference materials

29 Asian Trade and Global Linkages 2008 Working paper

30 At Different Speeds: Policy Complementarities and the Recovery from the Asian Crisis 2009 Research paper