The Asian Development Bank (ADB) on Monday said deeper regional economic integration in Asia is vital to sustaining growth and managing risks in the region.
In a new study, the ADB said while the economic integration is led by the market, Asian economies need to boost their ties through closer dialogue and policy coordination in order to take full advantage from increased regional interdependence.
It said Asia now is less integrated in finance than in trade but financial markets are now larger, deeper, and more sophisticated than they were a decade ago when the Asia financial crisis struck and first shed light on the importance of regional economic integration.
"Asian regionalism can be a stabilizing factor when shocks arise," the ADB said.
"The region faces a challenging period ahead as global payment imbalances appear increasingly unsustainable as the financial turmoil unfolds and global economic slowdown deepens," it said.
The regional bank said to foster financial stability and economic prosperity, Asian nations also need to improve regional macroeconomic surveillance and work toward the creation of new regional institutions such as an Asian Financial Stability Forum and an Asian Secretariat for Economic Cooperation.
The challenge to Asian policy makers is to closely monitor global and regional developments, and to be ready to act together if region-wide responses are appropriate, the study said.
It also said the region needs to cooperate to make development sustainable by protecting regional health and environment.
Source: Xinhua
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