Saturday, July 12, 2008

Asian Development Bank encourages regional integration

The Asian Development Bank (ADB) released a new study suggesting that the growing integration in Asia including the formation of the planned ASEAN and Asian free trade areas is healthy for the world economy.

The integration offers a new platform to promote growth, strengthen trade links, and reduce poverty, the ADB said in a new study, entitled "Emerging Asian Regionalism: A Partnership for Shared Prosperity."

The study also suggested that while Asian economic integration is market-led, to tap the full potential of regional interdependence, Asian economies need to boost their ties through closer dialogue and policy coordination.

Although environmentalists encourage local production whenever possible, the free and fair movement of commodities, products and people is essential in establishing a healthy balance between nations, and to help prevent shortages.

According to the new study, Asia is lacking in economic integration as compared to other regions.

The study highlights that Asia is less integrated in finance than in trade but financial markets are now larger, deeper, and more sophisticated than they were a decade ago. With the growth of trade and financial ties, Asia's macroeconomic interdependence has also increased.