The Boao Forum for Asia Progress of Asian Economic Integration Annual Report 2009

Abstract

This report represents a report card on the progress of economic integration in Asia under the current global financial crisis. It describes some of the major economic issues in the Asia-Australia region in the past, especially those events in the year 2009.

The report describes in detail the impacts of the global financial crisis on Asia, how the Asian economies performed during the crisis, how they responded to the hardship caused by the global financial crisis and the encouraging signs that Asia is leading the world on the recovery path. Notably, China and India, the two most populous and fast-growing economies were able to maintain positive growth throughout the crisis. Their outstanding performance in growth and recovery have contributed substantially to the global efforts to overcome the current difficulties.

With the severity of the global financial crisis Asia stood firm to intensify its efforts for closer economic cooperation among its members. The Asian economies are more inter-dependent on each other than ever before, with freer movements of goods, services, and capital. Faced with rising global protectionism, Asia called for greater trade and today’s Asia has emerged as a great guardian of the free global trading system.

The report also examines the progress of economic integration and cooperation in Asia, including the ASEAN Plus Three process, the APEC and the possibility of fulfilling its goal of becoming a free trade area, the progress of economic integration in sub-regions of Asia. As a matter of fact, the process of economic integration in Asia is very much alive and is moving forward at a steady speed.

The Copenhagen Meeting, the environmental issues and the work done by the Asian governments are not ignored in this report. The significance of these issues is that in terms of climate change and environmental protection, there has not been any formal cooperation framework among Asian members. Thus, the issues provide new opportunities for intensified regional cooperation.

Asia is leading the world on the recovery path after the global financial crisis, and there is strong evidence that Asia will continue to maintain its vitality and dynamism. No doubt, economic integration in Asia is intensifying, with more intensive and extensive cooperation and mutual dependence among the economies, through the channels of trade, investment, finance, and macroeconomic coordination. We trust that the Asian members will make continued and joint efforts to overcome the current financial crisis and fulfill the goal of an integrated Asia.