Press Release No. 16/88

JAPAN-IMF Conference Discusses Regional Economic Integration in Asia

March 4, 2016

The IMF’s Regional Office for Asia and the Pacific (OAP) and Hitotsubashi University hosted the conference “Advances and Challenges in Regional Integration,” in Tokyo on March 3-4, to discuss Asia’s experience with economic integration, including in the areas of trade, financial markets, and labor mobility.

The discussion by conference participants highlighted that while further financial integration could be beneficial to Asia, the associated risks also need to be managed. In particular, some participants stressed that financial sector liberalization and capital market liberalization need to be accompanied by the development of financial and macroeconomic institutions to manage the attendant rise in risks and vulnerabilities.

In his opening remarks, IMF Deputy Managing Director Mitsuhiro Furusawa stressed that Asia has made significant progress in economic integration and collaboration. “The region has come a long way in terms of economic integration, helped by many successful rounds of multilateral trade agreements that have reduced barriers,” he said. “In addition to trade Asia has made important strides in the area of financial integration as well. Motivated by the Asian financial crisis of 1997-98, significant steps have been taken, such as regional liquidity support arrangements through the Chiang Mai Initiative Multilateralization, the Asian Bond Fund, and the Asian Bond Market Initiative.”

In her keynote speech, Professor Anne O. Krueger of Johns Hopkins University stressed the synergies between pursuing regional and global trade integration. “In order to fully reap the benefits of regional trade agreements (RTAs) and make sure they do not result in regional protectionism, it is crucial to pursue RTAs in the context of multilateral trade liberalization,” she said. “As the fastest growing region in the world, Asia has a special responsibility in providing leadership and pushing the international community for a revival of WTO agreements.”

The conference brought together senior policymakers, academics, and representatives of the IMF, the Asian Development Bank, think tanks, and the private sector. The Japanese government financed the conference, which is part of OAP’s capacity building activities in the region.

Australia, Cambodia, China, Hong Kong, Indonesia, Japan, Korea, Lao P.D.R., Malaysia, Mongolia, Myanmar, Philippines, Sri Lanka, Thailand, and Vietnam were represented at the conference.

The conference’s program and presentations are available at: http://www.imf.org/external/np/seminars/eng/2016/hit2016/