International and Regional Cooperation: Asia's Role and Responsibilities

Abstract

Asia has emerged from the global financial crisis as an important stabilizing force and an engine of global economic growth. The establishment of the G-20 gives Asian economies the global forum that they need to both represent their interests in global governance and deliver on responsibilities concomitant with their growing weight in the global economy. The region has a host of cooperation arrangements in APEC, ASEAN+3, and EAS (East Asian Summit), all with ASEAN as the fulcrum. They are huge assets, but they need to be repositioned to relate effectively to the G-20 process and other global arrangements. They also need to comprehend the politics of the changing structure of regional power. This paper discusses the challenges that Asia faces in aligning regional and global objectives in financial, trade, and other areas of cooperation, such as climate change and foreign investment. It argues that Asia is now a critical player in the global system and has a central contribution to make in strengthening global governance and international policy outcomes. The paper sets out ways to fill gaps in regional cooperation and link the agenda for regional cooperation more effectively to Asia's new role globally. This is essential to sustain Asia's superior growth performance, correct imbalances, and support the global economic system.

Comment on “International and Regional Cooperation: Asia's Role and Responsibilities”

“…These have not achieved any meaningful reforms of the global financial architecture or effective surveillance of the global financial conditions. So I agree with Drysdale and Armstrong (2010) that while Asia should participate fully in the global process, it should also develop complementary processes at the regional level as well.…”

“…Drysdale and Armstrong (2010) argue that Asia should play a much more prominent role in global economic affairs, given Asia's increasing economic importance and dynamism. The current institutional structures, whether in trade, finance, or other development aspects, are found to be insufficient for Asia's effective participation in global governance.…”

Asia Reshaping the Global Economic Order: Editors' Overview

“…Peter Drysdale and Shiro Armstrong (2010) paint an overall picture of Asia's role and responsibilities in international and regional cooperation. They think that Asian countries should play a much more prominent role in global economic institutions and governance, because of Asia's growing importance in the world economy.…”

“…Drysdale and Armstrong (2010) evaluate the role of Asia in the G‐20 very positively, suggesting that the six Asian countries in the G‐20 should form an Asian caucus. Lee asked whether it is possible to have an Asian (collective) voice in G‐20.…”

Trade Policy and Growth in Asia

“…Comprehensive WTO plus Partial WTO-plus Goods and/or services utilization rates-based on the proportion of exports using preferences-are low in Asian countries and that FTAs are underutilized (Baldwin 2006;World Bank 2007;Drysdale and Armstrong 2010;Ravenhill 2010). This is mainly due to the increasing number of zero MFN tariff lines.…”