Financing for Regional Economic Integration for Northeast Asia

Abstract

The Northeast Asian region includes the major players China, Japan, and Korea, with productive linkages to resource-rich Russia and to the United States and is one of the most dynamic economic regions in the world. In contrast to the region’s robust economic growth, regional security has long been fragile, mainly due to the geopolitical conditions resulting from the Cold War era. If the countries in Northeast Asia wish to further their development and prosperity, they will have to learn to harness their dynamic economies and create a region in which peaceful coexistence and common prosperity prevail. Northeast Asia has a northern subregion that includes North Korea, Mongolia, the Russian Far East, and the northeastern provinces of China—an area that is well-endowed with latent natural and human resources. This subregion has the potential of becoming an important source of natural resources for the entire region, and what is needed is to realize that potential through infrastructure investment. Energy security and environment is for example, an important area of cooperation, as the three major countries are heavily dependent on energy imports and are highly vulnerable to energy crisis in the event of an interruption -- especially in the case of oil, natural gas and minerals imports. Financing requirements for this investment are likely to be large, and a regional development bank is a key in meeting that financing need. This volume presents the results of the project implemented in 2009 on financial cooperation in Northeast Asia aimed at supporting the establishment of a regional institution for financing infrastructure investment. This volume is comprised of papers, research reports and summaries of a main conference and several specialized meetings, as well as affiliated activities, that took place under this project. The results of this project represent a considerable benefit to the region and have been carried out in a spirit of cooperation that we esteem.