ADBI News Volume 2 Number 3

Transcription

1 ADBI News Volume 2 Number 3 Asian Noodle Bowl CONFERENCE Asian noodle bowls are trading arrangements characterized by complex and overlapping tariffs, standards, and rules of origin that can raise administrative and business costs. Free trade agreements (FTAs) are increasingly viewed as the major vehicle of trade policy and diplomacy in the Asia and Pacific region. In Asia, the number of FTAs seems set to increase in the next decade as East Asia plays a catch-up game with other regions. Researchers have pointed out that the trend toward FTAs in East Asia is associated with economic benefits, such as wider market access, greater market opportunities, upgrading of technology and productivity, and the spread of efficient production practices. Others suggest, however, that the formation of a large number of bilateral FTAs could pose challenges including discrimination against outsiders, trade and foreign direct investment diversion, and, above all, Asian noodle bowls. Asian noodle bowls are trading arrangements characterized by complex and overlapping tariffs, standards, and rules of origin that can raise administrative and business costs. According to these experts, this can be a particular problem for small- and medium-sized enterprises with limited capacity to deal with these issues. This is part of the reason for considering consolidation of Asian noodle bowls into a single, region-wide FTA. The Asian Noodle Bowl Conference, held on July 2008, consisted of two parts. Part I was a half-day conference on the impact of FTAs on business activity and assessment of current FTAs in East Asia. The panel consisted of experts from Australia, India, Indonesia, Japan, People s Republic of China, and Singapore, in addition to two representatives from the private sector. Part II was a one-and-a-half-day technical workshop to discuss in greater detail country-level FTA In this issue 1

2 strategies, issues related to the formation of an East Asian FTA, and an enterprise survey on FTA impacts on business activity. Country experts appear to have different views on whether there is a need to form an East Asian FTA. One view, for instance, is that the Association of Southeast Asian Nations (ASEAN) is still in the process of building its economic community and, once it accomplishes this task, ASEAN will have gained the confidence to advance the integration process. Preliminary findings of the enterprise survey include that more firms indicated positive impacts of FTAs than those that indicated negative impacts, and that small- and medium-sized enterprises tend not to use FTAs, whereas large firms do tend to use FTAs. ADB/ADBI s Flagship Study on Infrastructure and Regional Cooperation ONGOING RESEARCH The ADB/ADBI flagship study on Infrastructure and Regional Cooperation examines the key issues and challenges facing cross-border infrastructure development in Asia. The study attempts to outline what the region needs to address in terms of policies and best practices to meet these challenges. The study s second workshop was held in two parts both focusing on technical aspects of the research papers. The workshop s two parts drew 68 participants; 24 researchers presented their work on the study s four themes: trade and logistics, transnational infrastructure networks, policies and institutions, and financing infrastructure. Valuable comments were solicited from policymakers and experts from the academic community, think tanks, and the private sector. The first part, Policies and Institutions and Financing Infrastructure, was held in New Delhi on June ADB India Country Director Tadashi Kondo delivered welcome remarks, followed by opening remarks by ADBI Dean Masahiro Kawai. Alok Sheel, Secretary of the Economic Advisory Council to India s Prime Minister, delivered the keynote speech on financing Asia s infrastructure. Biswa N. Bhattacharyay, Special Advisor to the ADBI Dean and the task manager of the flagship study, gave the introduction to the workshop and presented the objectives, scope, and structure of the study. The first part of the workshop focused on policies and institutions and financing infrastructure. The major conclusions of the first part of this workshop include: (i) identify a set of policies and institutions that can provide conducive environments, such as the establishment of additional coordination mechanisms and regional policy and institutional frameworks for encouraging public-private partnerships in regional or cross-border infrastructure development; (ii) identify impediments to inter-governmental coordination and harmonization of legal and regulatory frameworks, policies, procedures, environmental and social safeguards, and other measures and suggest best practices; (iii) suggest modalities and new schemes of financing based on learning experiences from other regions to finance regional infrastructure by governments, multilateral and bilateral donors, and the private sector; and (iv) identify ways to strengthen and integrate regional financial systems, including capital markets and bond markets for efficient financing of regional projects. The second part of the workshop, Trade and Logistics and Transnational Infrastructure Networks, was held in Bangkok on 3 4 July ADB Southeast Asia Director General Arjun Thapan provided welcome remarks, followed by opening remarks by ADBI Dean Masahiro Kawai. The major conclusions of the second part of the workshop include: (i) identify the types of regional infrastructure, such as transport and energy infrastructure, needed for the development of regional production networks and supply chains in order to connect production 2

3 (ii) (iii) clusters and gateways within the region and significantly reduce trade and logistics costs; further deepen analysis of the socio-economic impacts of regional infrastructure projects on economic growth and development, poverty reduction, and social conditions, focusing on subregional and cross-subregional (such as Greater Mekong Sub-region, South Asia, and Central Asia) projects in the transport and energy sectors; and analyze the distributional impacts of regional The second part of the workshop focused on trade and logistics and transnational infrastructure networks. infrastructure networks on different countries and different sectors or types of people within each country, and suggest best practices for designing and implementing regional infrastructure projects. East Meets West on Trade Costs CONFERENCE ADBI and the Inter-American Development Bank co-organized a conference on Trade Costs and Regional Cooperation in Lima under the framework of the Latin America/Caribbean and Asia/Pacific Economics and Business Association (LAEBA) on June The conference addressed common issues and concerns of trade costs and regional cooperation in both Asia and Latin America/Caribbean. The objective was to examine key issues and challenges in reducing trade costs and enhancing intra- and inter-regional cooperation. Studies presented in the conference focused on analysis of policy issues through empirical and case studies at national, subregional, and regional levels. The discussion papers for Asia included: Afghanistan Pakistan Trade Costs in the Greater Mekong Sub-region: A CGE 1 India Cambodia Approach; Viet Nam Philippines Trade Costs, Production Indonesia Fragmentation, and Regional Thailand Malaysia Integration in Asia; Singapore Trade Costs and Trade Patterns in Taipei,China South Asia; Hong Kong, China Korea, Rep. of Port Competition and Japan Coordination; and Germany United States Transforming Trade Competition into Coordination in PRC. 2 Australia 1 CGE = computable general equilibrium 2 PRC = People s Republic of China The participants agreed that expanding and improving the necessary physical and institutional infrastructure would reduce trade costs and therefore increase trade. Empirical evidence discussed in the conference suggested that the explosive growth of Asia s exports in recent decades has been enabled by increases in the quality and quantity of trade-related infrastructure (see Figure). View conference materials on the IADB website, accessible via Infrastructure Performance Index 1.1 Source: Arvis, Jean-Francios, Monica Alina Mustra, John Panzer, Lauri Ojala, and Tapio Naula Connecting to Compete: Trade Logistics in the Global Economy The Logistics Performance Index and Its Indicators. Washington, DC: World Bank

4 Another Look at Growth and Development DISTINGUISHED SPEAKER The government must provide leadership and vision, adopt effective communication strategies, and build consensus. A. Michael Spence, recipient of the 2001 Nobel Memorial Prize in Economic Sciences and chairman of the independent Commission on Growth and Development, which is supported by the World Bank, bilateral donors, and the William and Flora Hewlett Foundation, discussed the Commission s work to deepen the understanding of sustained and inclusive growth and development on 24 March Professor Spence noted that 12 (now revised to 13 with the addition of Brazil) economies have achieved sustained high growth, showing 7% or more for 25 years or more. There is a wider range of countries that have experienced recent growth accelerations. The jury, however, is still out on whether these more recent growth accelerations can be transformed into sustainable growth dynamics. These economies have different starting points, growth patterns, and drivers of growth, but they appear to have common elements that sustained their growth momentum. These include leveraging the global economy; market incentives and decentralization; high levels of savings and public and private investment; resource mobility; stable and functional investment environment; political leadership and effective, pragmatic, and (when needed) activist government; and pragmatism and willingness to experiment. For countries that have sustained high growth, the transition period from low to high income is shorter (see Figure). Growth Dynamics: Transitions in Years as a Function of the Growth Rate Source: Author s calculations. Professor Spence pointed out that the government should be pragmatic and should not be guided by dogma. The role of the government evolves over time as the economy matures, expands its capabilities, and integrates into the global economy. The government must provide leadership and vision, adopt effective communication strategies, and build consensus. Finally, Professor Spence noted some global trends such as rising income inequality and resistance to globalization; impacts of global warming on developing countries; global implications of the growth of the People s Republic of China and India; demographics, aging, and migration; and global governance, imbalances, and the rising influence and impact of developing countries that pose the challenge of policy coordination with new important players. These trends need to be given more attention by key world leaders. Read a more detailed summary of Professor Spence s seminar at Changing Demographics and Asia s Development DISTINGUISHED SPEAKER Mahani Zainal Abidin, Director-General of the Institute of Strategic and International Studies in Malaysia, discussed the impact of changing demographics and the need for human capital in Asia s development on 25 March She first noted two contrasting demographic trends in Asia: North East Asian countries of East Asia has been experiencing falling population growth rates and a growing aging population while the rest of East Asia has had high population growth rates with a relatively young population age structure. At the same time, a substantial level of migration flows is being seen, particularly in South East Asia. Dr. Mahani argued that the emergence of new economic powers in Asia can be based on population size. Aside from providing large 4

5 markets for products and services, countries with rapidly increasing populations can attract investment, and they therefore have the potential to become centers for production. However, demographic characteristics can be a strength or a burden to a country, so managing demographic factors is an essential strategy. Read a more detailed summary of Dr. Mahani s seminar at Emergence of new economic powers in Asia can be based on population size. Northeast Asia: Current Challenges and Future Prospects DISTINGUISHED SPEAKER A solution to the North Korean food crisis will continue to depend on future diplomatic developments. Marcus Noland, Senior Fellow at the Peterson Institute for International Economics in Washington, DC, discussed the making of the North Korean famine in the 1990s. He pointed out in his 18 April 2008 seminar that North Korea pursued collectivization of its agriculture after the Korean War and made the agricultural system one of the most input-intensive in the world. Since the country conducted half of its foreign trade with the Soviet Union, the disintegration of the latter brought about a massive trade shock. The North Korean industrial economy imploded and, deprived of industrial inputs, agricultural output plummeted. He indicated that in the short-run, food aid is needed to respond to the current food crisis. However, Noland suggested that the long-run solution to North Korea s chronic food problems was for the country to open up externally and export manufactured goods, mining products, and other goods. He emphasized that a permanent solution to the North Korean food crisis and its economic revival would continue to depend on future diplomatic developments. Read a more detailed summary of Marcus Noland s seminar at Bridging Research and Policy DISTINGUISHED SPEAKER Chalongphob Sussangkarn, Distinguished Fellow at the Thailand Development Research Institute and a former finance minister of Thailand, delivered a lecture entitled Bridging Research and Policy: Perspectives from Experiences in Research and in Government on 29 July He stressed the importance of developing trust and networking with public agency officials in a partnership mode to make research results much more effective than can be achieved by either party working alone. Technical transfer of knowledge is also necessary to cultivate long-term networking between think tanks and public sector agencies. Research and policy are multidimensional and complex, so bridging the two is necessarily complex. 5

6 Dr. Chalongphob takes the view that because both research and policy are multi-dimensional and complex, the bridging is necessarily complex. Thus, how to make best use of the policy research and bridging capacities already available in developing countries will be the biggest future challenge, rather than simply concentrating on building more policy research and bridging capacities. Read a more detailed summary of Dr. Chalongphob s seminar at speaker/. Tax Audit Seminar for Enhancing Fairness SEMINAR Tax audits are widely used in developing countries to support self-assessment by taxpayers of income and other entries in their tax returns. Audits are also important for achieving fairness in taxation among both individual and corporate taxpayers. However, globalization of economic activities has made business transactions more complicated, so tax authorities need to develop new measures to get useful information on entities and their full business transactions. ADBI s fifth Tax Administration Seminar organized in collaboration with the Malaysian Tax Academy and the governments of Japan, Malaysia, Singapore, and Thailand aimed to meet this need by introducing more advanced tools and methods pertaining to tax audits and examinations. The seminar was held at the Malaysian Tax Academy on June Twenty-six senior tax audit officials from member countries of the Association of Southeast Asian Nations (ASEAN) participated in the seminar. Some instruments and measures for enhancing audits suggested during the seminar were: more effective legal frameworks (including taxpayers record-keeping obligations, authority to access books and records, sound management of third-party information, and sanctions for noncompliance); sound management of information systems for data collection, records, and analysis; and use of risk management principles to select cases for auditing. Read an executive summary of the seminar s proceedings at Organic Agriculture: Market-based Development Strategy for Achieving the Millennium Development Goals ADBI Senior Research Fellow Sununtar Setboonsarng presented the results of her work at the 16th International Federation of Organic Agriculture Movements World Organic Congress on June 2008 in Modena, Italy. Presenting cross-country empirical evidence, she showed how organic farming engages the poor, providing environmental services while pulling them out of poverty. Organic food and fiber contribute to: Income and food security (Millennium Development Goal [MDG] 1) by allowing higher profit and more diversified food systems for home consumption. Improved income generally leads to better education (MDG 2). Health (MDG 4, 5, 6) by reducing pesticide exposures and improving dietary quality. Environment and mitigating climate change (MDG 7) by restoring soil fertility and biodiversity, purifying water, sequestering carbon in the soil, and reducing fossil fuel use. Global partnerships for development (MDG 8). Effectively, international trade of organics is a marketbased strategy for consumers to transfer payment for environmental services to the poor, who have comparative advantage in producing organics. A myth, a caution, and a recommendation: Does organic mean lower yield? Lower yields may occur in fertile irrigated land, but evidence shows that organic farming increases yield in marginal and degraded land, where many of the poor reside. Promotion of genetically modified organisms must be done with extreme caution because their long-term impacts on health and the environment are unclear. Corporations intellectual property rights issues must also be resolved. The public sector could assist in harmonizing standards, developing carbon credit schemes, and endorsing organics as environmental goods under the World Trade Organization to further reduce poverty and mitigate climate change. For related reading, see ADBI Discussion Papers 49, 54, 101, 106, and 107 at View Sununtar Setboonsarng s presentation at 6

7 Labor Migration Management and Regional Integration in Asia CONFERENCE Thirty-three participants from Asia and the Pacific participated in the conference. The Regional Conference on Labor Migration Management in the Process of Regional Integration, sponsored by ADBI, the International Organization for Migration (IOM), and Chulalongkorn University, took place at the IOM Regional Office for Southeast Asia in Bangkok from 27 to 30 May Thirty-three senior government delegates and speakers from Asia and the Pacific took part in the four-day event to discuss regional and sub-regional trends and issues in labor migration management. The conference was divided into five sessions. The first session provided an overview of labor migration and its impact on the global economy. The second session demonstrated the link between labor migration management and regional economic integration. Labor migration policies and other issues in labor-sending and labor-receiving countries were also discussed. The third session illustrated the social dimensions of labor migration from human rights, irregular migration, and public health to brain drain and brain gain issues. The final session focused on how countries can maximize the development aspects of labor migration; the session included presentations on the role of remittances in poverty reduction and potential policies for regional technical accreditation among Asian countries. The participants also had an opportunity to learn from each other through country presentations that outlined national labor migration experiences and challenges, as well as policy responses. In an effort to encourage multilateral thinking and collaborative approaches to migration management, participants were separated into four sub-regional groupings to examine common challenges and identify policies and mechanisms to address these challenges. The participants noted the need for closer collaboration on migration policies and management to more equally distribute the benefits of labor migration management in the context of regional integration. Read a more detailed summary of the conference at org/event/2533.labor.migration.management.conference/. Dong per US$ Viet Nam: Where Is It Heading? Increasing Pressure on Vietnamese Dong to Depreciate Band widened from 0.5% to 0.75% (24/12/2007) Official rate Ceiling rate Parallel mrk rate Floor rate InterBank rate Band widened from 0.75% to 1% (10/03/2008) Band widened from 1% to 2% (27/06/2008) T1-06 T /12/ /12/ /12/ /1/7 2008/1/ /1/ /1/ /1/ /2/5 2008/2/ /2/ /2/ /3/4 2008/3/ /3/ /3/ /3/ /4/3 2008/4/9 2008/4/ /4/ /4/ /5/6 2008/5/ /5/ /5/ /5/ /6/3 2008/6/9 2008/6/ /6/ /6/ /6/ /7/1 2008/7/5 2008/7/9 2008/7/ /7/ /7/ /7/25 Time (Months) Experts from the region gathered at ADBI on 29 July 2008 to assess Viet Nam s most recent macroeconomic condition. The discussion focused on key questions including: Is Viet Nam headed for a currency crisis? What lessons could countries that experienced a crisis in offer to Viet Nam? Source: State Bank of Viet Nam 7

8 A s i a n D e v e l o p m e n t B a n k I n s t i t u t e Recent Brown Bag Lunches How Can We Prepare for Shrinking Populations? CONFERENCE Many countries in the world are experiencing the demographic shift toward a shrinking population. With rising longevity, declining fertility, and the baby boomers retirement, societies are aging more rapidly now than they have in the past. This presents a significant economic challenge not only for developed countries, but also for some emerging economies, particularly those in East Asia. Population aging has significant impacts on almost every economic aspect of society. It reduces the labor supply and national savings; raises demands for health, medical, and care-giving services for seniors; and can strain public finances. Because of this, economic adjustments will likely be needed in fields such as public finance and social security systems, fiscal policy, financial market development, and capital and labor mobility. On 3 June 2008, ADBI held the Public Finance/Social Security System and Intergenerational Issues in De-population Society International Conference, in collaboration with the Policy Research Institute, Japan s Ministry of Finance, and Hitotsubashi University. The conference focused on the impact of shrinking and aging populations on economies pension systems and related issues. The conference assessed the issues faced by Asian countries such as Japan, People s Republic of China, and Republic of Korea, and European countries such as Germany and Sweden. Resolving social security issues such as pension and medical care, in which one generation depends upon funds from the next, were agreed to be the biggest challenge. The growing social security burden is expected to affect economic vitality and public finance due to its influence on the labor supply and productivity. The participants, who included economic experts, government officials, and academics, discussed the policy challenges of depopulation and exchanged views on appropriate policy responses and suggestions for regional cooperation in Asia and Europe. The search for an optimum social security system brought about many important policy discussions on how the timing and implementation of macroeconomic policy could adjust to structural changes in society. A variety of issues were discussed, including the participation of older people and women in the labor force (in order to offset the decline in the number of workers) as well as immigration policy adjustments and investment in technological innovation (in order to stimulate labor productivity and provide medical care in the future). Finally, there was a comment that current global problems like the recent food crises and environmental issues should be considered to address depopulation in societies. Recent Brown Bag Lunches Brown Bag Lunch Seminars, June August 2008 Thanong Bidaya, visiting research fellow and former finance minister of Thailand, presented his paper, Thailand s Crisis, Recovery and Restructuring: A Policy Perspective, at an ADBI brown bag lunch seminar. He pointed out that financial restructuring efforts alone were not sufficient to recover economic growth but that parallel efforts in economic restructuring through appropriate institutional changes were key engines for balanced and sustainable growth after the 1997 financial crisis. Other presenters in brown bag lunch seminars have covered topics from trade and logistics to regional financial integration and cooperation (see Table). 8

9 Simplification and Harmonization of Rules of Origin WORKSHOP Senior trade officials from member countries of the Association of Southeast Asian Nations (ASEAN) and the South Asian Association for Regional Cooperation as well as the People s Republic of China, Republic of Korea, and ASEAN Secretariat participated in the workshop. They produced recommendations for the simplification and harmonization of preferential rules of origin to facilitate cross-border trade. Rules of origin (ROOs) are a set of rules used to determine the nationality of a tradable good. Multiple sets of ROOs have come to coexist as free trade agreements (FTAs) have proliferated. These ROOs have become an important trade issue, mainly because the common practice of manufacturers to outsource parts/components from different countries makes it complicated to determine the nationality of final products. This presents difficulties for United Nations members, which must report trade statistics including the country of origin of imports and exports. More importantly, customs authorities face difficulties in determining what rate of customs duty to apply to products. The workshop on Simplification and Harmonization of Rules of Origin aimed to draw implications and recommendations for simplification and harmonization of preferential ROOs to facilitate cross-border trade. Senior trade officials from member countries of the Association of Southeast Asian Nations (ASEAN) and the South Asian Association for Regional Cooperation (SAARC) as well as the People s Republic of China, Republic of Korea, and ASEAN Secretariat participated in the workshop, which was opened by ADBI Capacity Building and Training Director Worapot Manupipatpong. The workshop was held at ADB s Thailand Resident Mission in Bangkok on March 2008 by ADBI in collaboration with ASEAN/SAARC Secretariats, United Nations Conference on Trade and Development (UNCTAD), government of Japan, and ADB s Office of Regional Economic Integration. The participants reviewed the ROO policies of major trading partners (European Union, Japan, and United States) and examined the World Trade Organization (WTO) draft of a product-specific harmonized ROO that had been developed by the World Customs Organization. They also examined preferential ROOs such as the generalized system of preferences and ROOs of the North American Free Trade Agreement, ASEAN Free Trade Area, and South Asia Free Trade Agreement. Recommendations proposed include an early adoption of the WTO harmonized ROO; application of best practices of existing FTA ROOs in new FTA negotiations; harmonization of definitions of technical terms used in FTA ROOs; use of the WTO draft harmonized ROO in new FTA ROOs where possible; and full use of the advance ruling system on a country of origin determination by authorities. View an executive summary of the workshop proceedings and other materials at 9

10 Infrastructure and Trade in Asia FEATURED PUBLICATION A new book, Infrastructure and Trade in Asia, edited by Douglas H. Brooks and Jayant Menon, discusses important concepts relating to infrastructure and trade, particularly the regional perspective of rising trade, infrastructure investment, and regional integration and cooperation. The book contains nine chapters, which explore aspects of the implementation of trade-related infrastructure facilities, and their impacts on poverty, trade, investment, and macroeconomic balances. Chapter 1 presents the book s central argument: that efforts to expand and enhance infrastructure services will reduce the costs of doing business and of international trade, helping to maximize growth and the benefits of regional trade and investment integration. A framework for considering the role of infrastructure in regional cooperation is presented in Chapter 2. John Weiss employs a modified formulation of the effective rate of protection to quantify the empirical significance of broader trade cost barriers. He finds that infrastructure investments and interventions reduce trade costs and hence stimulate closer trading linkages. Factors affecting the time and money required to move goods across borders under the scope of trade facilitation are discussed in Chapter 3. Philippa Dee et al. examine various methods used to measure the economic effects of reforms aimed at facilitating trade. A framework for analyzing how soft infrastructure can contribute to reducing trade costs and strengthening regional cooperation in developing Asia is provided in Chapter 4. Haider Khan argues that the existence of and improvements in soft infrastructure are negatively correlated with trade costs. A modified gravity model is employed in Chapter 5 to demonstrate that variations in tariffs, transport costs, and infrastructure facilities have a significant influence on regional trade flows in Asia. Prabir De finds that higher tariffs or transport costs and poorer quality infrastructure have negative impacts on trade. The impacts of road improvement in the Lao People s Democratic Republic are examined in Chapter 6. The findings by Jayant Menon and Peter Warr show that reducing transport costs through rural road improvement generates significant reductions in poverty incidence. The impact of infrastructure development on regional economic integration is discussed in Chapter 7. Christopher Edmonds and Manabu Fujimura examine the role of road infrastructure for regional integration in the Greater Mekong Subregion. Their findings suggest that improved quality of road infrastructure in border areas has a positive impact on trade flows between neighboring countries. The Millennium Development Goal water target in Asia is the focus of Chapter 8. P.B. Anand argues that per capita income, economic growth, and the provision of water infrastructure are highly correlated with achieving this water target. Questions relating to financing infrastructure development are addressed by Douglas H. Brooks and Fan Zhai in Chapter 9. They find that infrastructure s effects on trade and economic growth depend on the financing mode chosen and the investing country s initial conditions. Welcome, Japanese Representative Office On 1 September 2008, ADBI welcomed a new neighbor at its offices in Kasumigaseki Building: ADB s Japanese Representative Office is now sharing the eighth floor. ADBI looks forward to the enhanced synergy with ADB headquarters expected from this move. Japanese Representative Office Resident Director General Kuniki Nakamori (seated, right) and (left to right) Staff Consultant Akiko Mochizuki, Senior Admin. Asst. Keiko Hamada, Asst. Admin. and External Relations Officer Keiko Kawazu, and Liason Specialist Shunichi Hinata, pictured here with ADB President Haruhiko Kuroda (seated, left) and Chief Advisor to the President Shuichi Hosoda. 10

11 Selected Upcoming Events October November November 3 4 December 5 December December ADB/ADBI s Flagship Study: Infrastructure and Regional Cooperation, 3rd Workshop on Book Preparation (Beijing) Selected ADB/ADBI staff and policymakers and experts from the academic community, think tanks, and the private sector will provide comments on the draft book chapters, which will be presented at the workshop. The chapter themes are the need for regional infrastructure, the benefits of regional infrastructure networks, enhancing intra-regional trade and investment, financing regional infrastructure, and polices and institutions for effective regional infrastructure. Developing Asia Journalism Training and Awards (Tokyo) This training program will contribute to better governance through better monitoring and objective assessment by journalists of regional and national policies and initiatives as well as emerging economic and development trends. Strengthening Public-Private Partnerships for Infrastructure in the Pacific Region (Brisbane, Australia) The third in a workshop series that has been initiated to improve the understanding of senior officials across the Asia and Pacific region, who are responsible for infrastructure development, of the benefits of PPPs, priority actions to enable PPPs, and the design features of bankable PPP projects. Study Finalization Workshop on ADB/ADBI s Flagship Study: Infrastructure and Regional Cooperation (Tokyo) Chapters of the book, following the themes of the 3rd Workshop on Book Preparation, will be presented and finalized based on comments from experts. ADBI Annual Conference Asia s Contribution to Global Economic Development and Stability (Tokyo) The 11th Annual Conference will highlight research in development issues that fall under ADBI s priority themes. Public-Private Partnerships in Infrastructure (PPPI) Days 2008 (Washington, DC) A two-day PPP conference preceded by a PPP capacity building event, and concluded with a forum for PPP knowledge-sharing among public and private sector partners. View all upcoming events at Recent Discussion Papers Can Ethical Trade Certification Contribute to the Attainment of the Millennium Development Goals? A Review of Organic and Fair-Trade Certification Author: Sununtar Setboonsarng The growth of ethical consumerism in developed countries has led to increased imports of environmentally and socially certified products produced by the poor in developing countries. Organic products and fair-trade products are among the rapidly growing ethical trade products. This paper assesses how the conditions under organic certification and fair-trade certification contribute to the achievement of the MDG targets. Read Discussion Paper 115 at The Impact of Terrorism and Conflicts on Growth in Asia, Authors: Khusrav Gaibulloev, Todd Sandler This paper quantifies the impact of terrorism and conflicts on income per capita growth in Asia for Policy recommendations indicate the need for rich Asian countries to assist their poorer neighbors in coping with the negative growth consequences of political violence. Failure to assist may result in regionwide repercussions. Read Discussion Paper 113 at asia /. Managing Prolonged Low Fertility: The Case of Singapore Authors: Mukul G. Asher, Amarendu Nandy This paper analyzes Singapore s multi-pronged approach to managing prolonged low fertility, which has led to population aging, labor force shortages, increasing elderly dependency ratios, and feminization of the elderly population. The chosen policy priorities have created a dilemma between ensuring Singapore s business competitiveness and meeting its residents needs and expectations. Read Discussion Paper 114 at 11

12 Recent Research Policy Briefs Managing Capital Flows in Asia: Policy Issues and Challenges Authors: Masahiro Kawai, Mario B. Lamberte While capital inflows can provide emerging market economies with invaluable benefits in pursuing economic development and growth, they can also pose serious policy challenges for macroeconomic management and financial sector supervision. This policy brief describes the patterns of capital flows in and their impact on emerging Asian economies and discusses possible policy measures to manage surges in capital inflows while remaining consistent with the goals of macroeconomic and financial sector stability. It suggests options for workable national policies and regional policy cooperation, particularly in exchange rate management. Infrastructure and Asia s Trade Costs Author: Douglas H. Brooks Infrastructure has played a key role in Asia s export-led rapid growth, but the details of that contribution are poorly understood even though infrastructure accounts for huge amounts of investment. This policy brief examines and, where possible, quantifies the role of hard and soft infrastructure in reducing Asia s trade costs and thereby influencing trade flows and patterns. Read Research Policy Brief 27 at Read Research Policy Brief 26 at research-policy-brief/2008/06/25/2597.managing.capital. flows.asia.policy.issues.challenges/. A Strategy for Small- and Medium-Sized Enterprise Development within a National Innovation System: The Case of the People s Republic of China Authors: Tracy Yang, Jamus Jerome Lim, Toshiki Kanamori The small- and medium-sized enterprise (SME) sector can play a significant role in further reforms of the People s Republic of China s national innovation system, which, in turn, could spur continued growth. This policy brief highlights how issues such as innovation, research and development, and strategic clustering influence the SME sector, and outlines internal and external conditions that may affect the further development of this sector. Read Research Policy Brief 28 at ADBI News Publisher: Mamoru Umemoto ADBI News reports quarterly on the activities of the Asian Development Bank Institute. The views expressed in this newsletter do not necessarily reflect the views or policies of the Asian Development Bank Institute or the Asian Development Bank. Materials may be reprinted with credit given to ADBI News. To send comments or to request a free subscription, adbinews@adbi.org; fax a message to ; or write to ADBI News, Kasumigaseki Building 8F, 3-2-5, Kasumigaseki, Chiyoda-ku, Tokyo , Japan. For the web version, go to ADBI Online To read ADBI News online, go to For information, send an to info@adbi.org or go to For publications, go to To read daily development-related news and analysis, go to Sign up to receive E-Newsline daily. Register for free alerts when new material is posted on our website. 12