ADB says regional ties can help Asia tackle rising cross-border challenges
REGIONAL cooperation is increasingly necessary to tackle a rising number of cross-border challenges in Asia and the Pacific, including infrastructure gaps, trade connectivity, financial contagion, and climate and disaster-resilience, according to a new report from the Asian Development Bank (ADB) released on Tuesday.
The Asian Economic Integration Report 2018 says collective action to build regional public goods brings greater benefits than if countries work alone to address issues that also affect their neighbours.
Regional public goods are goods, services, and systems of policies or rules that have shared benefits across countries, such as cross-border infrastructure, communicable disease control, and disaster risk management.
“Enhanced regional cooperation and coordination can help countries manage regional issues, particularly if they complement national and global actions,” ADB Chief Economist Yasuyuki Sawada said.
He added that “multilateral development banks can help increase regional public goods by reducing knowledge and financing gaps, as well as promoting regular policy dialogue for long- term cooperation among countries.”
The report points to several efforts in Asia to establish and strengthen regional public goods.
For example, it says the 2014 pledge by 18 Asian leaders to eliminate malaria by 2030 has spurred countries to work together to achieve the goal to benefit the region.
The report further notes the ADB’S Greater Mekong Subregion Health Security Project to help control communicable diseases in the Mekong region border areas is part of such efforts.
Trade facilitation programmes between countries in the Central Asia Regional Economic Cooperation region have boosted intraregional trade, supporting economic growth, adds the report.
The report says Asia’s intraregional trade – measured by value – rose to 57.8 percent of its total global trade in 2017 from 57.2pc in 2016.
“The recovery in regional trade can be attributed to the expansion of global value chains after a slowdown since 2012. Intraregional foreign direct investment also increased slightly to US$260 billion (K411 trillion) in 2017 from US$254.7 billion in 2016,” adds the report.
Growing trade and investment linkages in Asia and the Pacific can be a buffer for the region against uncertainties in the global economy, the report says.
However, it warns that uncertainty about trade policy could dampen the recovery in regional and global trade and damage consumer sentiment and business confidence in capital spending and investment. – Xinhua