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ASIAN DEVELOPMENT BANK INSTITUTEKasumigaseki Building 8F3-2-5 Kasumigaseki, Chiyoda-kuTokyo 100-6008Japan

Tel: +81-3-3593-5500Fax: +81-3-3593-5571URL: www.adbi.orgEmail: info@adbi.org

© 2013 Asian Development Bank Institute

Cover photo: Kasumigaseki Building, Tokyo, Japan

Table of Contents

Dean’s Message ................................................................................................................................... 2

Advisory Council ................................................................................................................................... 3

Vision and Overview ........................................................................................................................... 4

Results Framework ................................................................................................................................ 5

Collaboration within ADBI and with ADB Headquarters ................................................................. 6

Working with Other Knowledge Partners .......................................................................................... 8

Research ............................................................................................................................................ 12

Capacity Building and Training ........................................................................................................ 24

Outreach ............................................................................................................................................. 30

Appendix 1: Organization Chart ...................................................................................................... 37

Appendix 2: Deans and Advisory Council Members ..................................................................... 38

Appendix 3: Research Events ........................................................................................................... 39

Appendix 4: Capacity Building and Training Events....................................................................... 42

Appendix 5: Selected ADBI Publications ......................................................................................... 44

Appendix 6: Top 30 Downloads of 2012 ........................................................................................... 52

List of Abbreviations

ADB Asian Development Bank

ADBI Asian Development Bank Institute

AEC ASEAN Economic Community

AFDC Asia Pacific Finance and Development Centre

APEC Asia-Pacific Economic Cooperation

ASEAN Association of Southeast Asian Nations

BRICs Brazil, Russia, India, People’s Republic of China

CAREC Central Asia Regional Economic Cooperation

CASS Chinese Academy of Social Sciences

CBT capacity building and training

CEPII Centre d’Etudes Prospectives et d’Informations Internationales

CLMV Cambodia, Lao People’s Democratic Republic, Myanmar, Viet Nam

DAJA Developing Asia Journalism Awards

DMC developing member country

DRM disaster risk management

ESCAP Economic and Social Commission for Asia and the Pacific

ERD Economics and Research Department, ADB

EU European Union

FTA free trade agreement

G20 Group of Twenty

IADB Inter-American Development Bank

IMF International Monetary Fund

IWRM Integrated Water and Resources Management

NEAR North East Asia Research Foundation

OECD Organisation for Economic Co-operation and Development

PPP public-private patnership

PRC People’s Republic of China

RePEc Research Papers in Economics

SME small and medium-sized enterprise

SSRN Social Science Research Network

UNDP United Nations Development Programme

VIIES Vienna Institute of International Economic Studies

WTO World Trade Organization

US United States

“$” = US dollar

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T he year under review was highlighted by ADBI’s development and introduction of a results framework, increased collaboration internally

and with ADB Headquarters, a strong focus on external knowledge partnerships, and the advancement of research as well as capacity building and training (CBT) activities.

The ADBI results framework contains a set of 15 measurable indicators that will enable performance to be tracked in a more systematic and structured way than in the past. This is the first knowledge management results framework in ADB and the first among the major multilateral development banks to combine research, CBT, and outreach.

Through the year, the coordination of Research and CBT activities was strengthened with joint projects that involved the active participation of ADBI’s Research and CBT Departments through all phases of the project cycle. Moreover, ADBI’s Outreach Unit worked closely with both departments to disseminate ADBI outputs along multiple channels.

ADBI continued in 2012 to improve ties with its parent institution, ADB, with collaboration at the level of strategic planning, joint ownership of major studies, and individual activities. Formal contact points were also appointed in ADBI and departments at ADB Headquarters to establish more structured communications. As well, ADBI staff began to serve as peer reviewers for certain ADB projects.

Working with external knowledge partners is a priority for ADBI. In 2012, ADBI collaborated with global and regional organizations, government, public agencies, think tanks, universities, and other knowledge partners. Such collaboration broadens ADBI’s understanding of development issues, raises the quality of its research and CBT activities, widens outreach, and enhances the impact of activities. Such external partnerships in 2012 included the ADBI-OECD Conference on Services in Selected Sectors and the ADBI-World Bank Roundtable on Regional Commodity Exchange Market Integration in Asia.

Besides advancing the work of ongoing research projects, six new projects with cross-cutting themes were initiated in

2012. These included the new flagship study Connecting South Asia and Southeast Asia, which will analyze how closer regional connectivity and economic integration between South Asia and Southeast Asia can benefit both subregions given the new role played by Myanmar in facilitating this process. Moreover, the study Future of the World Trading System: Asian Perspectives was launched in 2012 to undertake a broad and comprehensive examination of key changes occurring in the world trading system and their policy implications for Asia.

CBT activities are spread across the themes of inclusive and sustainable growth, regional cooperation and integration, and governance for policies and institutions, of which there were 23 policy dialogues, six course-based training programs, and one e-learning course in 2012. Microfinance Training of Trainers was a distance learning course that sought to strengthen the institutional capacity of microfinance in the region by increasing the number and country coverage of accredited microfinance trainers. Running for the eighth time, this course had over 300 participants in 2012.

In the area of outreach, ADBI continued efforts to widely disseminate ADBI outputs in the form of publications and through top-tier and local media, the ADBI website, and social media channels. A new initiative for 2012 was the introduction of the ADBI blog Asia Pathways, through which short original contributions on economic and development issues in Asia and the Pacific are presented.

It is my sincere wish that this 2012 activity report of ADBI provides a solid understanding of our work as the think tank of ADB and how our strategic focus and activities contribute to ADBI’s vision of being the leading knowledge center for economic development in Asia and the Pacific.

Masahiro KawaiDean & CEOAsian Development Bank Institute

Dean’s Message

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The functions of the Advisory Council are set out in Article IV of the Statute of the Asian Development Bank Institute. The Council has

seven members, one of whom is a senior official from ADB Headquarters (HQ). The other members of the Advisory Council are distinguished practitioners or scholars in the field of development or management selected from among ADB’s members on a broad geographical basis. Members of the Advisory Council are appointed for two years by the ADB President and may be reappointed. They meet twice a year. The Advisory Council selects its own chair.

In accordance with the Statute, the Advisory Council provides advice and recommendations on the strategic directions of ADBI and reviews the ADBI work program. In the governance structure of ADBI, the Advisory Council plays a crucial role in guiding ADBI’s activities and ensuring that its work products and chosen projects are of the highest standards and relevance.

The Advisory Council met in Tokyo on 27 April 2012 and Manila on 2 October 2012, where it considered ADBI’s work program for 2013–2015.

Advisory Council

Standing (from left): Masahiro Kawai (ADBI Dean), Masahisa Fujita, Changyong RheeSeated (from left): Sebastian Paust, Haruhiko Kuroda (ADB President), and Cinnamon Dornsife. (Not pictured: Ajit Kumar Seth)

Name Country

Cinnamon Dornsife Acting Co-Director of the International Development Program,The Paul H. Nitze School of Advanced International Studies, Johns Hopkins University

United States

Masahisa Fujita President and Chief Research Officer, Research Institute of Economy, Trade and Industry

Japan

James Richard Gilling First Assistant Director General, AusAID

Australia

Justin Yifu Lin Honorary Dean, National School of Development, Peking University

People’s Republic of China

Sebastian Paust Senior Adviser to the Managing Board, Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH

Germany

Ajit Kumar Seth Cabinet Secretary and Cabinet Secretariat, Government of India

India

Changyong RheeChief Economist

ADB

Justin Yifu Lin

James Gilling

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Vision and Overview

The ADB Institute is recognized as the leader in the creation and sharing of knowledge on economic development in the Asia and Pacific

region. ADBI conducts research and capacity building and training activities that contribute to ADB’s overall objective of poverty reduction.

ADBI focuses on medium- to long-term development issues of strategic importance to senior policymakers. The objectives of ADBI, as set forth in its Statute, are to identify effective development strategies and to improve the capacity of agencies and organizations in developing member countries.

ADBI strives to be demand-driven and to respond to important challenges affecting many stakeholders in the region in a timely, operationally relevant, and policy-oriented fashion.

ADBI increases the impact of its activities by working closely with leading think tanks to shape the debate on key emerging issues and to develop sound and practical recommendations regarding policy reforms.

ADBI ensures the quality of its research and capacity building and training programs by pursuing excellence and originality in areas where it has an unmatched strategic advantage, such as the analysis of emerging policy issues from a regional perspective. To further strengthen its reputation as a trusted knowledge institution, ADBI has introduced a results framework for its programs and activities. It also seeks to enhance its visibility, impact, and accessibility through the use of new media and refined knowledge products.

ADBI has been pursuing a work program with three strategic priority themes, which form a coherent basis for all its activities:

Inclusive and sustainable growth Regional cooperation and integration Governance for policies and institutions

Pr ivate sec tor i s sues , a s dr iver s o f economic development, cut across all the strategic themes.

ADBI’s financial statements can be found in the ADB Annual Report 2012, Vol. 2.

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ADBI adopted a recommendation in the special evaluation study of ADBI published in 20111 that it should develop a results framework,

accomplishing it in close coordination with knowledge departments at ADB HQ.

The ADBI framework is the first in ADB to focus on knowledge activities and it has drawn on state-of-the-art thinking. The framework contains a set of 15 measurable indicators that will enable performance to be tracked over time in a more systematic and structured way than in the past. Monitoring against these indicators will begin in 2013.

This is the first knowledge management results framework in ADB and the first among the major multilateral development banks to combine research, capacity building and training, and outreach. ADB

HQ is in the process of establishing its own knowledge management results framework and ADBI will be working closely with the knowledge departments to ensure that the frameworks are compatible.

The results framework will make ADBI’s strategic direction much clearer for stakeholders and for staff, who will be able to see how their individual achievements fit into ADBI’s broader picture.

The ADBI results framework is a clear indication of how seriously ADBI takes the need to track and improve its performance. Establishing well-defined measurable indicators and monitoring performance against them will give management a clearer idea of where ADBI’s strengths and weaknesses lie and will enable them to improve performance as a result.

Results Framework

1 ADB. 2011. Special Evaluation Study: Performance of the Asian Development Bank Institute: Research, Capacity Building and Training, and Outreach and Knowledge Management. Manila.

ADBI’s Research and Capacity Building and Tra in ing (CBT) depar tments continued to act as a team and to share resources in undertaking their activities. Research fellows participated in selected CBT activities as resource speakers and as discussants, allowing them to supplement their theoretical work with insights from CBT participants engaged on a day-to-day basis with emerging issues in developing countries. Joint activities organized by the Research and CBT departments in 2012 included: OECD–ADBI Roundtable on Capital Market Reform in Asia , CLMV Project–Training on Agricultural Productivity and Natural Resources Management, and Policy Dialogue: ASEAN, the PRC, and India: The Great Transformation?

The Outreach Unit works with the Research, CBT, and Administration, Ma n a g e m e n t , a n d C o o rd i n a t i o n departments to ensure that all ADBI events, publications, working papers, special programs, and partnerships are reflected on the ADBI website in an accurate and timely manner.

The coordination of Research and CBT activities was strengthened in 2012 through more joint projects and by involving both departments in all phases of these joint projects. For example, the joint Research and CBT project, Strengthening ASEAN Transitional Economies, will include research and CBT components in all phases. For other research projects, CBT is involved in the early stages of development of such projects to ensure that their contents are also appropriate

Collaboration within ADBI and with ADB Headquarters

Collaboration within ADBI and with ADB Headquarters

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for CBT purposes. Research is also involved in delivering CBT activities.

Working with ADB Headquarters

ADBI has greatly strengthened its bonds with its parent institution, ADB, in recent years. Collaboration occurs at the level of strategic planning, joint ownership of major studies, and individual activities. Formal contact points have been appointed in ADBI and departments at ADB HQ to establish more structured communications. ADBI staff have served as peer reviewers of ADB projects.

Strategic planning. All ADBI medium- and long-term planning is carried out in close consultation with the ADB Board and management and with the knowledge departments and, where relevant, operations departments at ADB HQ. Before launching a major initiative, ADBI consults extensively with relevant departments at ADB HQ to ensure that the strengths of the two institutions can be used to maximum advantage. In addition, ADBI conducts an annual consultation exercise with ADB HQ to ensure that any variations in the work program are communicated. Also, ADBI provides input when ADB departments launch work programs. All ADBI projects in the three-year rolling work program are reviewed and commented on by ADB departments before the work program is submitted to the Board. The ADB chief economist is a member of the ADBI Advisory Council and gives advice and recommendations on the strategic directions and work programs of ADBI and on potential synergy with ADB.

Major studies. The ADBI flagship project, Climate Change and Green Asia, is a joint project with ADB HQ, with the Regional and Sustainable Development Department taking the lead in Manila. Other major ADBI projects being carried out with ADB include: ASEAN, the People’s Republic of China, and India: The Great Transformation? (with numerous departments); ASEAN 2030: Toward a Borderless Economic Community, and Supporting Equitable Economic Development in ASEAN: A Project Focused on Cambodia, Lao PDR, Myanmar, and Viet Nam (both primarily with the Southeast Asia Department); Pacific 2030 (mainly with the Pacific Department); and Disaster Risk Management in Asia and the Pacific (with the Regional and Sustainable Development Department).

Individual activities. ADBI continued to work closely on research and capacity building activities and knowledge products with various departments at ADB HQ during 2012. During the year, ADBI collaborated with the Economics and Research Department, Office of Regional Economic Integration, Private Sector Operations Department, Regional and Sustainable Development Department, Strategy and Policy Department, and regional departments.

Results Framework

ADBI adopted the recommendation in the special evaluation study of the institute that it should develop a results framework, which it has developed in close coordination with knowledge departments at ADB HQ. (see p. 5).

In 2012, ADBI collaborated with global and regional organizations, government, public agencies, think tanks, universities, and other knowledge partners. This broadens ADBI’s understanding of development issues, raises the quality of its research and CBT activities, widens its outreach, and enhances the impact of its activities. Examples of activities ADBI conducted in 2012 with external partners include the following.

ADBI–OECD Conference on Services Trade in Selected Sectors: Audiovisual Services, Higher Education, and Financial Services (January 2012) with OECD; and Indian Council for Research on International Economic Relations, IndiaThe 2nd ADBI-OECD Roundtable o n L a b o r M i g r a t i o n i n A s i a :

Managing Migration to Support Inclusive and Sustainable Growth (January 2012) with OECDOECD–ADBI 12th Roundtable on Capital Market Reform in Asia (February 2012) with OECD ADBI–NEAR Joint Conference: Lessons from Japan—Is Japan Korea’s Future? (March 2012) with North East Asia Research Foundation, Republic of KoreaADBI–PRI Conference: Achieving Financial Stability—Lessons from the Eurozone Crisis for Macroeconomic and Financial Stability (March 2012) with Policy Research Institute of Japan’s Ministry of Finance 8 th Mic ro f in ance Tr a in ing o f Tr a ine r s : A B l ended Di s t anc e Learning Course (April 2012) with World Bank, US

Working with Other Knowledge Partners

Working with Other Knowledge Partners

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ADBI Partners

International organizations: International Monetary Fund (IMF); Organisation for Economic Co-operation and Development (OECD), including its Task Team on South -South Cooperation; World Bank, including its Tokyo Development Learning Center; World Trade Organization (WTO); European Bank for Reconstruction and Development (EBRD); Inter-American Development Bank

Regional organizations: Asia-Pacific Economic Cooperation (APEC), including its Business Advisory Council and its Secretariat; Association of Southeast Asian Nations (ASEAN), including its Secretariat; Network of Asian River Basin Organizations (NARBO); Mekong Institute.

National government agencies: Australian Agency for International Development (AusAID); Bank of Italy (Representative Office in Tokyo); Japan Bank for International Cooperation; Japan Fair Trade Commission (JFTC); Financial Services Agency, Japan; Japan International Cooperation Agency; Japan Water Agency; Ministry of Finance, Japan

Think tanks, universities, and other knowledge institutions: Australian APEC Study Centre, RMIT University, Australia; Australian National University; Brookings Institution; Bruegel, Brussels; Cambodia Development Resource Institute; Centre d’Etudes Prospectives et d’Informations Internationales (CEPII); Chatham House, UK; Chinese Academy of Social Sciences (CASS); Economic Research Institute for ASEAN and East Asia, Indonesia; Indian Council for Research on International Economic Relations (ICRIER); Istituto Superiore Mario Boella (ISMB), Italy; Korea University; ; Myanmar Development Research Institute; National Bureau of Economic Research, US; Peterson Institute for International Economics; Policy Research Institute, Ministry of Finance, Japan; Politecnico di Torino, Italy.

MOU partners: Australian APEC Study Center at RMIT University; Bruegel, Belgium; Bertelsmann Stiftung, Germany; Centre d’Etudes Prospectives et d’Informations Internationales (CEPII), France; Chines Academy of Social Sciences - Institute of World Economics and Politics (CASS-IWEP); Centre for East Asian Studies at Korea University.

The 8th East Asia Top Level Officials’ Meeting on Competition Policy and the 7th East Asia Conference on Competition Law and Policy (May 2012) with Japan Fair Trade Commission (JFTC); and Malaysia Competition CommissionThe 3rd High-Level Pol icy Roundtable on Internat ional Investment Pol ic ies in As ia : Responsibility and Sustainability (May 2012) with OECD; and Asia-Pacific Financial Development Center, PRC

Asia–Latin America: Forging a Long-Term Partnership (May 2012) with ADB HQ; and the IADBNBER Japan Project Meeting (June 2012) with National Bureau of Economic Research, US; Australia–Japan Research Centre, Australia; Columbia University, US; and University of Chicago, USAsia-Pacific Forum on Financial Inclusion: Approaches, Regulations, and Cross-Border I s sue s ( June 2012) w i th APEC Bus ines s Advisory Council; and Asia-Pacific Finance and Development Center, PRC

Year in Review 2012

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Managing the WTO Accession Process: Strategies, Challenges, and Practices (July 2012) with ADB HQ; Asia–Pacific Finance and Development Center (AFDC); World Bank, USADBI–IADB Seminar: Shaping the Future of the Asia and the Pacific–Latin America and the Caribbean Relationship (July 2012) with Inter-American Development Bank, USFuture of the World Trading System: Asian Perspectives (August 2012) with World Trade OrganizationADBI–World Bank Roundtable on Regional Commodity Exchange Market Integration in Asia (September 2012) with World Bank, USSu b - r e g i o n a l Wo r k s h o p o n M i l l e n n i u m Development Goals for Central and East Asia (September 2012) with ADB HQ; United Nations Development Programme (UNDP); and United Nations, Economic and Social Commission for Asia and the Pacific (UNESCAP)Adjusting the World to the New Realities of the International Financial System (October 2012) with Reinventing Bretton Woods Committee, US

Asia–Latin American and the Caribbean High Level Economic Policy Forum - Asia–Latin America: New Engines of Growth of the Global Economy? (October 2012) with ADB HQ; and IADB PPP infrastructure Development–Basics for Negotiation (November 2012) with the Center f o r Fi n a n c i a l , Ec o n o m i c , a n d Ba n k i n g Studies, France; and Asia–Pacific Finance and Development Center, PRC7th NARBO IWRM Training—Solutions to Water Sector Issues through IWRM: The Mahaweli River Basin Experience (November 2012) with ADB HQ; Japan Water Agency; and Network of Asian River Basin Organizations

The seminar, Adjusting the World to the New Realities of the International Financial System, provided insight on the eurozone crisis, the regional cooperation responses, and the implications of the crisis for regional cooperation in Asia.

Working with Other Knowledge Partners

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Networking

In 2012, ADBI continued to strengthen external knowledge partnerships and disseminate knowledge on development issues. Under the ADBI Visiting Researcher Program, three visiting researchers and fellows from the Asia and Pacific region each spent up to 6 months at ADBI. ADBI continued to communicate with former visiting fellows and researchers to inform them of ongoing ADBI activities

and to inquire about the status of their ADBI working papers and the outreach activities that they conducted for their research papers. ADBI’s database of visiting fellows, researchers, and scholars is being used to strengthen its network of alumni and friends of ADBI.

ADBI’s e-newsline and e-notification services as well as its Facebook and Twitter accounts are also used to strengthen contacts with alumni of Research and CBT events.

The Research Department addresses sal ient economic and social i ssues pertaining to ADB developing member countries. For 2012, these included the ongoing European sovereign debt and banking crisis and its implications for Asian countries and international trade and investments. Other key issues and research areas were examined in line with the three ADBI priority themes: inc lus ive and susta inable growth; regional cooperation and integration; and governance for policy and institutions. The following section highlights the five crosscutting themes projects and six new projects that were launched in 2012, as well as various events and publications.

Ongoing Projects with Crosscutting Themes

Climate Change and Green AsiaThis flagship project examines how Asia’s emerging economies can respond to increasing demand for low-carbon development and introduce proactive policies to strengthen green growth practices in developing Asia. The study has also helped create a network of institutions that can draw on each other’s expertise in promoting green economic development. The study’s findings will be directly relevant to the policymaking and investment communities, and it will make important contributions to regional policy cooperation for low-carbon green growth. The study is being implemented jointly with ADBI’s Capacity Building and Training Department (CBT), ADB departments, particularly the Regional and

Research

Research

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Sustainable Development Department, and several Asian think tanks. The project organized four events in 2012.

One such event, Beyond Nimbyism: Towards Integrated Reforms for Financing Green Growth, focused on reform measures to accelerate green growth and the development of policy tools that catalyze investment in climate change mitigation, adaptation, and green technology.

ASEAN, the People’s Republic of China, and India: The Great Transformation?This study examines in detail key development issues affecting member countries of the Association of Southeast Asian Nations (ASEAN), the People’s Republic of China (PRC), and India; and their role in, and impact on, the regional and global economies. The findings will provide policymakers with national and regional medium- to long-term policy and strategy frameworks for achieving a balanced, sustainable, and resilient development process. The study’s focus is on maximizing the potential of Asia’s key emerging economies while minimizing negative externalities by fostering integration and cooperation. This study is being implemented jointly with ADB departments. The project organized three events in 2012.

International Monetary and Financial System—Asian PerspectivesThis project focuses on issues related to reforms of the international monetary and financial system that can support the development of Asian economies, including institutional efforts to promote greater regional monetary cooperation and exchange rate coordination; new international reserve instruments; and increasing the voice of Asian economies in global financial institutions. Several components of this project are being implemented jointly with other think tanks.

ASEAN 2030: Toward a Borderless Economic CommunityThe aim of the study is to analyze aspirations and challenges for ASEAN as the region moves along the next two decades of development. It defines the

vision of a “RICH” ASEAN—a Resilient, Inclusive, Competitive, and Harmonious region—by 2030. In line with this vision, the study will offer an informative, technical, and detailed view of the main challenges and the policy reforms and institutional developments required, at both national and regional levels, to bring them to higher income levels and to improve the quality of life of their citizens. This project is being implemented jointly with the ADB Southeast Asia Department and the ASEAN Secretariat. The project organized two events in 2012.

������������ ������������The aim of this study is to provide strategic directions to Pacific island economies, their governments, civil society, and business communities on approaches to development. The study will define the increased economic interdependence of the Pacific with East and Southeast Asian countries and include a component focused on the long-term implications for Pacific island economies of the development of information and communication technologies. This project is being implemented jointly with the ADB Pacific Department and in collaboration with several development partners, including the Australian Agency for International Development and the World Bank. This project will be continued in the 2013–2015 work program. The project organized one event in 2012.

New Projects with Crosscutting Themes

Connecting South Asia and Southeast AsiaThis new flagship project, in collaboration with ADB’s South Asia and Southeast Asia Departments, will analyze how closer regional connectivity and economic integration between South Asia and Southeast Asia can benefit both subregions, with a focus on the role played by physical infrastructure and public policies in facilitating this process. It will examine major developments in South Asia–Southeast Asia economic cooperation, the role of economic corridors, and regional cooperation initiatives. By virtue of its strategic location straddling South Asia and Southeast Asia, the recent opening up of Myanmar in political,

Year in Review 2012

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economic, and financial terms presents a significant new opportunity for enhancing these integration efforts, with the promise of substantial gains for both regions. This is particularly the case for land-based transportation, such as highways and railroads, as well as energy and information and communications technology infrastructure. The focus is on connectivity in a broad sense, covering both hardware and software, including investment in infrastructure, investment financing and financial development, energy trading, trade facilitation, and support of national and regional policies. This study will provide: (i) an assessment of sectors with the potential for significant benefits from cooperation; (ii) specific policy options at the regional, subregional, and country levels to realize those benefits; and (iii) the dissemination of the findings to public and private stakeholders through a senior policy seminar, publication of the interim, final project reports and an edited book, and media outreach. The project held an inception meeting in 2012.

Disaster Risk Management in Asia and the ������Countries in the Asia and Pacific region are particularly exposed to natural disasters. Of the ten major natural disasters with the highest death tolls since 1980, seven have occurred in the developing countries of Asia. In addition to the human lives lost, the average annual direct economic cost related to property destroyed in natural disasters in the region from 2002 to 2011 is conservatively estimated at $65 billion. Including indirect economic losses associated with disruptions to the wider national and regional economies through interruptions of production networks and supply

chains, loss estimates would increase by a significant margin.

This study, in collaboration with ADB’s Regional and Sustainable Development Department, aims to reflect the changing and rising trends of natural hazards and disasters in the region, as well as to better assess human and economic losses due to disasters, evaluate national DRM strategies and policies and regional frameworks, and make appropriate local, national, and regional level recommendations. The project organized three events, including an inception meeting, in 2012.

The Future of the World Trading System: Asian PerspectivesThe world trading system is undergoing fundamental changes because of the rise of emerging economies such as the BRICs (Brazil, Russia, India, PRC), which are expanding trade and investment globally. New perspectives from Asia, whose economic importance is growing rapidly, can help facilitate an orderly transition and sustain trade-led growth for all economies involved. For instance, an increasing share of Asia’s trade consists of intermediate goods and services that pass through different economies and industries before being assembled into final products. Such global production value chains substantially alter how economies interact through trade. International rules and institutions for trade can also have profound and lasting effects on this shift and redefinition of trade relationships. In the absence of a WTO Doha deal, the spread of free trade agreements (FTAs) in Asia has implications for the pace of trade liberalization, the consolidation of regional trade rules, and the compatibility between global and

������������������������������������������������������������������������������������!������"�#���������$"�%����&��Conference 2012 took stock of recent developments in regional integration and assessed policy choices for sustainable growth.

Research

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regional trade rules. Finally, following the 2008 global financial crisis and amid the ongoing eurozone crisis, protectionist tendencies are also on the rise in some economies. This new project aims to undertake a broad and comprehensive examination of these key changes occurring in the world trading system and their policy implications for Asia. The project held an inception meeting in 2012.

Cambodia, Lao PDR, Myanmar, and Viet Nam Project: Strengthening ASEAN Transitional EconomiesThis project, in collaboration with ADB’s Southeast Asia Department, will conduct policy-oriented economic research and CBT programs to support the economic growth and social development of Cambodia, Lao PDR, Myanmar, and Viet Nam, which have been identified in ADBI’s ASEAN 2030 study as ASEAN’s most dynamic economies for the next two decades, but also those requiring more assistance from international partner agencies in terms of policy-oriented research and capacity building activities. The project carried out a training course in Bangkok in 2012.

Regional Cooperation and Integration

Asia–Latin America Economic TiesThis study of economic ties between the Asia and Pacific region and Latin America and the Caribbean aims to bolster the economic relationship between the two regions and to analyze the catalytic role of the two regional development banks, ADB and the Inter-American Development Bank (IADB). It analyzes patterns of trade and investment flows, the spread and depth of interregional free trade agreements, and forms of bilateral and multilateral cooperation. The project—jointly implemented by ADBI, ADB’s Office of Regional Economic Integration, and IADB—formed the basis of a high-level dialogue between the Presidents of ADB and IADB at the annual meetings of both banks in 2012. The project held six events in 2012. This project will be continued in the 2013–2015 work program.

Key changes taking place in global trade were discussed by participants at the workshop Future of the World Trading System: Asian Perspectives.

Year in Review 2012

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One such event, Asia-Latin America: New Engines of Growth of the Global Economy?, examined how Asia and Latin America economic ties have deepened in the last ten years, contributing to growth and poverty reduction in both regions. These economies demonstrated great resilience and rapid recovery after the 2008 global financial crisis, and can become the new drivers of the world recovery.

OutputsFour books and 26 working papers were published under this theme in 2012, including the following.

Infrastructure for Asian Connectivity is a follow-up volume to Infrastructure for a Seamless Asia. This book addresses the prospects and challenges concerning both soft and hard infrastructure development in Asia and provides a framework for achieving Asian connectivity through regional infrastructure cooperation.

Shaping the Future of the Asia and the Pacific-Latin America and the Caribbean Relationship. Economic ties between Asia and Pacific and Latin America and the Caribbean (LAC) have reached a turning point. In a mere decade, Asia has become the LAC’s second-largest trading partner. This dynamic trade relationship has boosted the LAC’s strategic and economic importance to Asia. In its four chapters, the book identifies the challenges and opportunities in each of these pillars while drawing attention to the benefits of balancing their development. This report is one of the most downloaded books on the ADBI website and represents a collaborative effort by ADB’s Office of Regional Economic Integration, ADBI, and IADB.

Regional and Global Monetary Cooperation evaluates regional and global monetary cooperation, focusing on financial safety nets, with a view toward developing recommendations for more effective cooperation, especially between the International Monetary Fund (IMF) and regional f inancial arrangements. This paper, by Mario Lamberte and Peter Morgan, argues that a global financial safety net (GFSN) should have adequate resources to deal

with multiple crises, be capable of a rapid and flexible response, and not be encumbered by historical impediments such as the IMF stigma that would limit its acceptance by recipient countries. Oversight of a GFSN needs to be based on cooperation between global and regional forums, for example, the G20 and ASEAN+3, or the East Asia Summit.

Asia-Latin America Free Trade Agreements: An Instrument for Inter-Regional Liberalization and Integration? This paper, by Ganeshan Wignaraja, Dorothea Ramizo, and Luca Burmeister, uses new criteria to examine whether Asian-Latin American FTAs have facilitated market-led integration by liberalizing trade and behind the border regulatory barriers in 20 Asian–Latin American FTAs in effect in 2012. The evaluation of agreements suggests that progress has been made in reducing trade and regulatory barriers using FTAs, but more needs to be done in future FTAs to solidify and expand the process of deep integration between the two regions. Traditional areas like goods and services are typically well covered in inter-regional FTAs. The paper also noted several challenges with existing Asian–Latin American FTAs including insufficient depth in some agreements, variable rates of FTA used by business, and the risk of a “noodle bowl” effect.

The People’s Republic of China’s High-Tech Exports: Myth and Reality, by Yuqing Xing, argues that the PRC’s leading position in high-tech exports is a myth created by outdated trade statistics that are inconsistent with trade based on global supply chains. Current trade statistics mistakenly credit entire values of assembled high-tech products to the PRC, thus greatly inflating its exports. In 2009, the PRC’s value-added accounted for only about 3% of the total value attributed to its exports of iPhones and laptop personal computers. This paper suggests that a value-added-based approach should be adopted to accurately measure high-tech exports. Furthermore, if assembly is the only source of the value-added generated by PRC workers, then in terms of technological contribution, these assembled high-tech exports are no different from labor-intensive products, and so they should be excluded from the high-tech classification.

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Institutions for Asian Integration: Innovation and Reform, by Giovanni Capannelli and See Seng Tan, is based on an ADB study completed in 2010. This paper reviews literature on the design and development of institutions for Asian regionalism and discusses the future needs for innovation and reforms of the regional institutional architecture having in mind the creation of a regional economic community. The paper follows the taxonomy of institutions for regionalism adopted by the ADB study and focuses on key governance principles for such institutions by presenting case studies of principles and institutions that worked and did not work well in the past. Asia’s institutions for regionalism need strengthening through reform and innovation such as better governance and resourcing, greater and more effective participation and delegation of powers, streamlining of regional architecture, including the phasing out of outdated or irrelevant institutions and, where needed, the creation of new ones.

Lessons of the European Crisis for Regional Monetary and Financial Integration in East Asia, by Ulrich Volz, discusses the causes of the eurozone crisis and the challenges that Economic and Monetary Union countries face in solving it. This paper highlights five lessons for regional financial and monetary cooperation and integration in East Asia: (i) do not rush monetary integration; (ii) rethink costs and benefits of international financial integration; (iii) develop and strengthen a regional crisis prevention and resolution mechanism before the next crisis hits the region; (iv) reinforce surveillance and monitoring of East Asian financial markets; and (v) put in place adequate resolution procedures and recapitalize banks swiftly once the banking system is in trouble.

Revisiting the Internationalization of the Yuan, by Yongding Yu, dicusses how, as the world’s second largest economy, largest trading nation, and the largest foreign holder of United States government bonds, the PRC needs a currency with international status that can match its economic status in the global economy. This paper suggests that before the internationalization of the yuan can make meaningful progress, necessary conditions, such as the existence of deep and liquid

financial markets, a flexible exchange rate and interest rates responsive to market conditions must be created. Yuan internationalization should be a natural course of economic development and capital account liberalization. To push yuan internationalization in an artificial way is counter-productive.

Inclusive and Sustainable GrowthFive books and 19 working papers were published under this theme in 2012, several of which are highlighted below.

Do Exporting Firms in the People’s Republic of China Innovate? This paper, by Ganeshan Wignaraja, assesses factors driving firm-level export performance in Asia’s super exporter—the PRC. While early studies suggest that innovation is important, there has been little research on opening the black box of technology at the firm-level in the PRC. The paper undertakes econometric analysis of innovation, learning, and exporting in automobiles and electronics firms in the PRC using a large-scale dataset to identify the most appropriate innovation proxy. Drawing on recent literature on innovation and learning in developing countries, it tests two alternative proxies: (i) a technology index to capture a variety of minor activities involved in using imported technologies efficiently; and (ii) the research and development to sales ratio, which represents formal technological efforts to create new products and processes, often at world frontiers.

Climate Change in Asia and the Pacific: How Can Countries Adapt? Edited by Venkatachalam Anbumozh i , Me inha rd Bre i l i ng , Se l va r a j ah Pathmararajah, and Vangimalla R. Reddy, this book compiles policies and best practices on climate change adaptation, focusing on the structural and nonstructural measures applied in the Asia and Pacific region to adapt to climate change. From environmental, social, and economic perspectives, the most vital sectors for the region are agriculture, and water and natural resource management. Although the book targets the Asia and Pacific region, key findings are relevant to other regions, such as Africa and Latin America.

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Asia’s Wicked Environmental Problems, by Stephen Howes and Paul Wyrwoll, considers four major environmental challenges that policymakers across developing Asia will need to address toward 2030: water management, air pollution, deforestation and land degradation, and climate change. This paper contends that these challenges, each unique in their own way, exhibit the characteristics of so-called “wicked problems.” Detailed case studies illustrate the complexity and significance of Asia’s environmental challenges, and also their nature as wicked problems. There will be no easy or universal solution to environmental problems across Asia.

Europe’s Debt Crisis, Coordination Failure, and International Effects, by Stefan Collignon, gives an overview of the causes of the European debt crisis and the consequences for external relations. This paper finds that political mishandling has increased uncertainty, which has contributed to a tendency for the euro to become weaker. Europe’s debt crisis is in reality a political crisis. The eurozone economy is fully integrated by the fact that the European Central Bank alone sets monetary budget constraints on domestic economies, but the political heterogeneities and different member state jurisdictions prevent economic policies that are consistent with the requirements of a single currency.

How Should We Bank with Foreigners?—An Empirical Assessment of Lending Behavior of International Banks to Six East Asian Economies, by Victor Pontines and Reza Y. Siregar, examines the influence of critical determinants not only to overall international bank lending to six selected Asian countries, but also to cross-border bank lending. One finding showed that cross-border lending by international banks tends to pull out from host economies during difficult times in source economies, whereas such retrenchments are not evident on an aggregated basis. This suggests that encouraging brick-and-mortar affiliates of international banks to “set up shop” in recipient economies may be the judicious choice for these economies. This paper also examines the differences between subsidiaries and branches of international banks in terms of their ability to shield

themselves from the financial difficulties of their global parent banks. The results show that foreign bank subsidiaries are more capable in this regard. This finding carries with it the attraction of favoring an organizational banking structure that is biased toward subsidiaries.

Governance for Policies and InstitutionsCurrency Internationalization: Lessons and Prospects for the RMBThe PRC’s high economic growth over the past several decades and its increasing economic integration with other countries have led to a significant increase in its importance in the global economy. This raises the question on the kind of role the renminbi (RMB) will play in international trade and finance. Indeed, over the last decade, the PRC has embarked on a number of initiatives to raise the status of the RMB in the international monetary system. For instance, the PRC began issuing RMB-denominated notes, bonds, and funds in Hong Kong, China. These and other measures will greatly accelerate the internationalization of the RMB. This new project, in collaboration with ADB’s Economics and Research Department and Office of Regional Economic Integration, aims to examine the extent and pace of RMB internationalization and how the experiences of other important international currencies can provide guidance and lessons on the likely path and prospects of RMB internationalization. It studies the implications of a greater role of the RMB for international trade, investment and financial transactions for the PRC economy, its neighboring and distant economies, and the global configuration of major reserve currencies, most especially the RMB’s potential challenge to the supremacy of the US dollar in the international monetary system.

OutputsFive working papers were published under this theme in 2012, including the following.

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Developing Asia’s Pension Systems and Old-Age Income Support, by Donghyun Park and Gemma Estrada, provides a broad overview of the state of pension systems in eight selected Asian countries; analyzes the pension systems; and identifies their major structural weaknesses. This paper suggests pension reform can reinforce and speed up reform in other areas. Pension reform can also serve as a catalyst for healthcare reform because old-age income and healthcare are vital components of the well-being of retirees. The paper concludes with specific policy directions for pension reform to strengthen the capacity of Asian pension systems in delivering economic security for Asia’s large and growing population of elderly.

The People’s Republic of China and Global Imbalances from a View of Sectorial Reforms, by Hiro Ito and Ulrich Volz, examines the impact of sectorial reforms on current account imbalances, with a special focus on the PRC. This paper argues that domestic financial liberalization has a negative impact on the current account balance among developing or emerging market economies. Moreover, domestic financial reform affects national saving and investment, which in turn affects the current account balance. The paper also provides evidence that reforms relating to the financial sector and social safety and healthcare affect both saving and investment as well as the current account of the PRC, the world’s largest current account surplus country.

Implications of the Global Financial Crisis for Financial Reform and Regulation in Asia examines how the 1997–1998 Asian financial crisis highlighted shortcomings in Asian financial markets, notably the underdevelopment of domestic bond markets and deficiencies in corporate governance, transparency, and financial regulation. Since then, Asian financial markets have made considerable progress. Edited by Masahiro Kawai, David Mayes, and Peter Morgan, this book highlights the challenges imposed by the 2008 global financial crisis—(i) preventing financial crises; (ii) responding to financial crises when they occur; (iii) managing international capital flows; and (iv) deepening and integrating financial markets to

provide an alternative source of funding to foreign capital flows—and suggests policy recommendations to address them.

Central Banking for Financial Stability in Asia, by Masahiro Kawai and Peter Morgan, reviews the recent literature on this topic and identifies relevant lessons for central banks, especially those in Asia’s emerging economies. This paper examines the debate about the definition of financial stability; the consistency of a financial stability objective with the more traditional and well-established central bank objective of price stability; the appropriate governance structure for coordination of macroprudential policy with other financial supervisors and entities; and the appropriate policy instruments to achieve macroprudential policy objectives, including conventional, unconventional, and macroprudential tools. The “lean versus clean” debate has been resolved, largely in favor of the former, and central banks should have a financial stability mandate and the policy tools to successfully pursue that mandate.

SeminarsTwenty-three seminars were held in 2012, attended by leading scholars and policymakers to discuss a wide range of issues. In addition, two brown bag lunch seminars were held at ADBI, which provided a platform for presenting preliminary research ideas and findings to solicit comments from ADBI staff. Two seminars are highlighted below.

Changing Myanmar: Challenges and Opportunities discussed the recent changes, as well as the economic development and opportunities for business in Myanmar as the country transitions to a more open and dynamic economy.

What Next for Doha and WTO? Guest speaker WTO Deputy Director General Alejandro Jara acknowledged that the WTO cannot address news rules that befit a significantly changed trading system without first concluding the Doha Development Agenda. The WTO must address a new agenda on investment rules, export duties, and other regulatory issues.

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ADBI’s Distinguished Speaker Seminar Series brings eminent persons to ADBI to encourage debate among policymakers, researchers, academics, think tanks and other audiences interested in economic development challenges in Asia and the Pacific. In 2012, 13 prominent scholars delivered seminars on various subjects, including the following.

The Seven Global Distortions: Impact on AsiaAndrew Sheng, President o f t h e F u n g G l o b a l Institute, talked about the emerging issues and policy challenges of interest to policymakers in the Asia and Pacific economies. In particular, he described how the “new normal” is not perfect markets, but massive global distortions. The global distortions aggravate social inequality and instability. Sheng highlighted the need to move out of short-termism, toward long-term sustainability and public good.

Eurozone Sovereign Debt Crisis: Current and Historical PerspectivesGianni Toniolo, research professor of economics and history, Duke University, North Carolina; and Daniele Franco, managing director of Economics, Research and International Relations of Banca d’Italia, spoke on the causes of the eurozone crisis and possible solutions and policy responses. Toniolo

said that although history—in particular Germany’s recession in the 1930s—is a guide in understanding the sovereign debt crisis in Europe and US, there are notable differences. Franco said deficits are expected to decline in the eurozone in 2013, and the financial conditions in the eurozone will become more stable than in Japan and the US. But problems remain, such as a lack of enforcement authority of EU rules. Greater economic coordination, correcting macro imbalances, and enforcement of rules will help ensure survival of the eurozone.

Demystifying the Chinese EconomyJustin Yifu Lin , chief economist and senior vice president of the World Bank, challenged many tenets of conventional n e o c l a s s i c a l t h e o r y and showed how naïve applications of many of its principles had catastrophic consequences for many transition economies. He provided a framework to analyze the causes behind those dramatic changes and drew lessons for other developing countries from the Chinese experience of rapid economic rise in the last three decades.

Will the Euro Celebrate Its 14th Birthday? The Present EU Economic Situation with a Special Reference to ItalyCarlo Filippini, professor of economics, Bocconi University, Milano, spoke about the economic and fiscal crisis in Europe, with particular reference to Italy. He said that the disappearance of the euro is unlikely because the economic cost would be

Distinguished Speaker Seminars

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too high. Deeper integration and a full fiscal union will be the final outcome for the EU. Although the prevailing solution is a combination of fiscal restraint and a more rigid stability and growth pact, Filippini stressed that structural reforms are required in many countries including Italy. After many years of low productivity and a high debt to GDP ratio, Italy is pursuing a difficult path of austerity, growth, and equity.

Flexible Exchange Rates for a Stable World EconomyJoseph Gagnon, a senior fe l low at the Peterson Institute for International Economic s , spoke on flexible exchange rates for a stable global economy. Gagnon argued that using monetary policy to fight exchange rate volatility, including through the adoption of a fixed exchange rate regime, leads to greater volatility of employment, output, and inflation. In other words, the “cure” for exchange rate volatility can be worse than the disease.

Carry Trades, Interest Differentials, and International Monetary ReformR o n a l d M c K i n n o n , the Will iam D. Eberle Professor of International Economics at Stanford University, said that the U S Fe d e r a l Re s e r v e ’s reduction of the interest r a t e on f ede r a l funds t o v i r t u a l l y z e r o i n December 2008 (followed by major European central banks) exacerbated the wide interest rate differentials with emerging markets and provoked global monetary instability by inducing massive hot money outflows into Asia and Latin America. Speculative money flooding into

emerging markets by “carry traders” caused local currencies to be overvalued. To prevent currencies from appreciating, emerging market central banks intervened to buy dollars. With persistent carry trades, however, emerging market central banks were forced to keep intervening to prevent unlimited appreciation. The sharp buildup of emerging market foreign exchange reserves, too big to be fully offset by domestic monetary sterilization, resulted in the loss of monetary control in emerging markets and led to inflation that was generally higher than that in developed market economies. Reform must focus on international monetary harmonization that limits interest rate differentials, while accepting the need for exchange rate buffers, such as capital controls. However, if interest rate differentials are too wide, capital controls will fail. Mature industrial economies, led by the US, would have to abandon the current monetary policies which set interest rates near zero.

Lessons for the Eurozone from AsiaO l a r n C h a i p r a v a t , a d v i s o r t o t h e Pr i m e Minis ter o f Thai land, Pres ident of Thai land Trade Representative, and a former deputy prime mini s t e r o f Tha i l and , said that in analyzing the European financial crisis, Asia’s experience with the 1997 Asian financial crisis serves as a useful point of reference. Thailand, along with Indonesia and the Republic of Korea, accepted an IMF-imposed austerity program and did badly as compared to Malaysia, which rejected the IMF’s prescription. The experience of crisis-hit Asian economies led to a change in thinking about the productiveness of “straight” austerity programs. The relaxation of austerity stances and implementation of pro-growth policies in combination helped Asia recover from its financial crisis. Drawing from the Asian experience, the same IMF “pain for gain” austerity solution for Greece cannot work

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because Greece does not have a currency to devalue. To resolve the eurozone crisis, not only must all eurozone countries pursue pro-growth policies, Asia and the rest of the world, including the PRC and Japan, must switch from austerity, or anti-inflationary stances, to pro-growth policies.

The New Continentalism: Energy and Twenty-First Century Eurasian GeopoliticsKent Calder, director of the Edwin O. Reischauer Center for East Asia Studies at SAIS and director of the Japan Studies Program at SAIS, argued that a new transnational configuration is emerging in continental Asia, driven by economic growth, r i s ing energy demand, and the erosion of longstanding geopolitical divisions over the past generation. What Calder calls the New Silk Road—with a strengthening multifaceted relationship between Northeast Asia, on the one hand, and the Middle East and South and Central Asia on the other at its core—could emerge as one of the world’s most significant multilateral configurations, although likely in a much less formalized fashion than traditional regional arrangements. The New Silk Road could be important in cushioning the impact of geopolitical change in Central Asia, with the role of multilateral development inst i tutions highly re levant in determining the ultimate developmental path of the New Silk Road nations.

Toward a New CapitalismM u h a m m a d Yu n u s , chairman of the Yunus C e n t r e , f o u n d e r o f G r a m e e n B a n k , a n d Nobel Peace Prize winner, argued that poverty is not created by the poor, but

rather it is imposed on the poor by a faulty system. Therefore, to eradicate poverty, the faulty system and the institutions that make up the system have to be fixed. Some of the most important of these institutions are those offering finance. This is because ensuring that the poor have access to finance is at the heart of eradicating poverty. However, banks operate in a paradoxical way, lending money to people who already have a lot of money, but not to people who do not have money, believing that poor people have limited means to repay loans. It is the deep conviction that this conceptual framework for finance is wrong which led to the founding of the Grameen Bank in Bangladesh. The establishment of the microfinance institution demonstrated that the scope of business could be widened to combine two kinds of businesses—one for making money and another for solving problems. These businesses, called “social businesses,” are self-fueling engines whereby activities become self-sustaining. Although charities can be effective on occasions, they face limits as charitable funds need not readily replenish themselves. It is within the people’s power to make unemployment and poverty obsolete features from the past. However, to succeed, it is necessary to redesign the economic system in a way that has yet been thought of before and social businesses may be one step in that direction.

Old Issues and New Frontiers: Non-tariff Measures in International Trade P a t r i c k L o w , c h i e f economist at the World Trade Organization, said tariffs have become less important in international t r ade wh i l e a t t en t ion is shifting to non-tariff measures (NTMs). These measures raise complex challenges for international trade and trade policy cooperation. These challenges arise from identification and measurement problems, the scope for using public policy interventions

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as a means of unduly restricting trade, and the administration of NTMs. In addition, emerging public policy concerns in new areas are likely to lead to new families of NTMs.

The Rise of Asia and the New World OrderD a l e W. J o r g e n s e n , the Samual W. Morris University Professor at Harvard University, said that the global economy is undergoing a fundamental change. Despite concerns o v e r s l o w i n g g r o w t h in the PRC, India, and Japan, and the possible dissolution of the eurozone, global economic growth is accelerating. How can this paradox be explained? If the global economy is shifting toward the more rapidly growing economies, then the world’s growth rate would shift toward the growth rates of the more rapidly growing economies. Thus, even if the growth rates of the PRC and India were to slow, global growth, which is considerably lower than that of both countries, would accelerate. The growth rate would lead to a new world order associated with more rapidly growing countries such as the PRC and India, which are going to have a larger share of the global economy. The PRC overtook Japan as the world’s second-largest economy in 2010. However, the World Bank noted that this milestone had been reached in 2005 in current purchasing price parity (PPP). In terms of PPP, India will overtake Japan in 2012 and the PRC will overtake the US in 2017. The US has been the world’s leading economy for more than a century. The new world order will look very different in 2020. Asia will boast three of the world’s four biggest economies. The largest economies in descending order will be the PRC, US, India, Japan, Russia, Germany, Brazil and the United Kingdom.

The Road to Fiscal Union in the Eurozone: Fantasy or RealityPaola Subacchi, research director of international economics at Chatham House, argued that fiscal union, and eventual ly pol i t ica l union, i s the on ly way fo r ward fo r Europe’s Economic and Monetary Union (EMU). D i v e r g e n c e s i n s i z e , development, and institutions present the EMU with the dilemma of policy coordination in which countries need to bind themselves by a political framework in order to respect their commitments and do not have a clear incentive to defect. As it is impossible to simultaneously achieve economic integration, the nation-state, and political democracy, the citizens of the eurozone will need to choose which two of these three goals they want to achieve and maintain.

The Capac i ty Bu i ld ing and Training (CBT) Department s t r i v e s t o p ro m o t e s o u n d

development management through enhancing developing member countries (DMC) senior and mid-level officials’ understanding of important development issues, identifying policies and measures to address these issues, assisting them to implement these policies and measures effectively, and providing venues for both formal and informal dialogues and communicat ion among DMC government officials.

All CBT programs follow one of three formats: policy dialogue, course-based training, and e-learning. Policy dialogues examine the implications and potential impacts of contemporary policy issues on Asian developing economies and seek to expand understanding of possible

responses among policymakers and other important stakeholders. Course-based training provides systematic practical knowledge and skills aimed to improve the capacity of policymakers in policy selection, design, execution, and assessment. E-learning courses use the internet as a learning tool to maximize the participation of government officials and practitioners in capacity development initiatives.

To ensure quality, relevance, and impact of CBT activities, every CBT program focuses on one of ADBI’s three priority themes: inclusive and sustainable growth, regional cooperation and integration, and governance for policies and institutions.

For each act iv i ty, par t ic ipants are careful ly selected to maximize the effectiveness of the program. Special

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attention is paid to the need for geographic, gender, and background balance and diversity as well as each participant’s relevant government work experience and the participant’s ability to use the content of the training program to train others—thereby transferring the knowledge to a wider audience. All programs are delivered in English, ADB’s official language.

In 2012, 23 policy dialogues, six course-based training programs, and one e-learning course were conducted: 18 on inclusive and sustainable growth, eight on regional cooperation and integration, and four on governance for policies and institutions. From DMCs, more than 7,500 participants attended the e-learning course Microfinance: Training the Trainers, while 1,471 participants attended CBT courses/workshops and policy dialogues in person. Selected programs are briefly described below.

Inclusive and Sustainable Growth Eighteen activities were conducted under the theme of inclusive and sustainable growth. They addressed capacity building needs related to labor migration in Asia and the Pacific region, managing climate

change issues and promoting sustainable economic development, financial inclusion, intelligent transport systems, river basin management, trade policy, microfinance, skills development, sanitation, and foreign investment flows.

The Cambodia, Lao PDR, Myanmar, and Viet Nam (CLMV) program is a direct result of collaboration between ADBI’s two departments: CBT and Research. ADBI is working with CLMV governments on a series of policy-oriented research activities and capacity building programs aimed at assisting these countries to narrow the development gap with other ASEAN countries. In partnership with the Mekong Institute of Khon Kaen, Thailand, ADBI conducted the first of four training programs in December 2012. The first CLMV training program examined opportunities and approaches to strengthening seed policy and improving seed industry efficiency through lectures, case studies, field visits, and group discussions. Over 40 government officials from CLMV countries attended the training program, including 11 from Myanmar.

ADB’s Economics and Research Department and ADBI conducted a workshop in Kunming, PRC, to explore effective government poverty-reduction policies.

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Tackling climate change and accelerating green growth is important to achieving sustainable development. At a stakeholder forum on Climate Change and Green Asia, senior officials from the emerging economies of Asia examined key issues and challenges in reducing greenhouse gas emissions without adversely affecting economic growth. Through country reports, presentations, and discussions, this forum assessed the scope and merit of current pledges and their progress, and analyzed the interplay of technological, institutional, market, and management factors in the dynamics of low-carbon green growth. The findings will be included in the ADB and ADBI flagship study Climate Change and Green Asia.

A policy dialogue on the key findings of the ADB and ADBI book, Public Policies and Practices for Low-Carbon Green Growth, brought together senior officials from large carbon-emitting economies of Asia to discuss key recommendations on renewable energy and energy efficiency policy options as a way to accelerate low-carbon green growth strategies, including technology transfer issues and financing options. Strengthening national innovation systems, including enabling market conditions and intellectual property regimes, is key to promoting indigenous technologies.

More than 300 participants joined the eighth program of the Microfinance Training of Trainers, a distance learning course that ran from December 2011 to May 2012. The course aimed to (i) strengthen the institutional capacity of microfinance in the Asia and Pacific region by making high-quality training accessible to a large number of policymakers, professionals, and practitioners; and (ii) increase the number and country coverage of accredited microfinance trainers in the Asia and Pacific region and around the world. In the 2011–2012 course, 199 participants—a record number—received accreditation as certified microfinance trainers. Since 2005, a total of 892 participants from 55 countries have been accredited as certified trainers through the course implemented in collaboration with the World Bank’s Tokyo Development Learning Center.

Regional Cooperation and Integration

The high-level policy dialogue, 12th OECD–ADBI Roundtable on Capital Market Reform in Asia, attracted more than 75 participants who discussed the global financial situation and regulatory reforms, the integration of Asian financial markets, the yuan’s internationalization, the supervision and risk management of Asian banks, and other related issues. At the roundtable Dr. Kiyohiko Nishimura, a deputy governor of the Bank of Japan, called for cooperation between Japan and the PRC on introducing direct trading between the yen and the yuan to reduce transaction costs and exchange rate risk, and to enhance the utilization of the yen and yuan in bilateral trade and investment. ADBI and OECD plan to publish the proceedings jointly.

The policy dialogue, Ways Forward for Corridor-Based Transport Facilitation Agreements in the CAREC Region, promoted knowledge sharing on approaches to improving transport facilitation among the countries participating in the Central Asia Regional Economic Cooperation (CAREC) program. CAREC is developing six international transport and trade corridors linking the program’s ten participating countries with each other and linking the region to other markets of Eurasia. The program plans to complete construction or improvement of about 8,380 km of roads and 5,300 km of railway lines by 2017. Improvements in soft infrastructure such as transport facilitation agreements are required to ensure this large body of investment delivers the highest returns to the region. The dialogue, organized in collaboration with ADB’s Central and West Asia Department, facilitated South–South knowledge exchange among 25 transport and customs officials from CAREC countries, exposed officials to transport facilitation agreement development and implementation in other regions, and considered feasible approaches to improving cross-border transport of goods and people in Central and West Asia.

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Governance for Policies and Institutions

About 20 government o f f i c i a l s in charge o f microfinance and banking regulations from countries in the Asia and Pacific region attended the course-based training program, Best Practice Regulatory Principles and Proportionate Regulation Supporting Micro and Small and Medium-Sized Enterprises Access to Finance. Experts from ADB HQ, ADBI, banks, and the Australian Treasury discussed regulatory initiatives and a proportionate regulation framework needed to support micro, small and medium-sized enterprise finance. Participants also shared their country experiences and conducted case analysis and presentations at the end of the training workshop. The summary report of the workshop was presented at the Asia-Pacific Economic Cooperation (APEC) Financial Inclusion Forum in June in Shanghai.

ADBI, the Japan Fair Trade Commission, and the Malaysia Competition Commission organized two meetings on competition law and policy. The 7th East Asia Conference on Competition Law and Policy focused on cartel practices, such as price-fixing, bid-rigging, market sharing, and output controls.

Government officials shared their experiences in identifying, regulating, and punishing these anti-competition behaviors and mechanisms. At the 8th East Asia Top Level Officials’ Meeting on Competition Policy, recent progress in regulations and institution building in East Asian countries were discussed. All participants agreed to conduct an annual survey on the institutional development of competition and enforcement policies and to share the survey results at the following annual meeting.

Since 2009, ADBI, the APEC Business Advisory Council, and the Asia-Pacific Finance and Development Center have organized policy dialogues on financial inclusion. More than 80 participants including relevant government officials, microfinance practitioners, researchers, and representatives of business and civil society organizations joined the Asia-Pacific Forum on Financial Inclusion: Approaches, Regulations and Cross-Border Issues. The policy dialogue focused on five areas: (i) approaches to promote financial literacy, (ii) financial identity, (iii) micro-finance regulation, (iv) consumer protection, and (v) facilitating cross-border microfinance.

CBT Director Dr. Yuqing Xing (left) instructs participants at an ADBI workshop on micro, small and medium enterprise ��������'

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The 2012 Developing Asia Journalism Awards

ADBI established the Developing Asia Journalism Awards (DAJA) in 2004 to recognize and promote excellence in reporting by journalists covering development trends and issues in the Asia and Pacific region. Each year, hundreds of journalists submit their written work on a specific topic chosen by ADBI. The theme for DAJA 2012 was “Green Growth or Growth Versus Green.” Over 150 articles highlighting the opportunities, challenges, and solutions being uncovered across the Asia and the Pacific—as the region seeks a path to green and sustainable growth—were accepted.

Twenty-five articles were selected by a panel of judges and their authors were invited to attend a workshop in Tokyo and a fieldtrip to Ishinomaki, which was heavily damaged by the Great East Japan Earthquake on 11 March 2011. Of the 25 journalists, five were from the PRC, two from Bangladesh, three from Cambodia, two from India, two from Indonesia, one from Lao PDR, one from Myanmar, two from Nepal, two from Pakistan, three from the Philippines, one from the Solomon Islands, and one from Tajikistan.

The workshop highlighted key environmental challenges and opportunities facing the Asia and Pacific region. Selected journalists introduced their articles and approaches to environmental issues in their respective home countries. Topics discussed included the science of climate change, the impact of climate change on Asia, responses to climate change by governments, communities, and businesses, and information resources on climate change. The field trip to Ishinomaki focused on the city’s recovery efforts and the environmental impact of the disaster. An awards ceremony at ADBI concluded the event.

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Climate change is widely regarded as one of most serious challenges the developing countries of Asia face, and adapting to it is an urgent requirement for the most vulnerable sectors. The Workshop on Agriculture Adaptations to Climate Change, organized in collaboration with the Asian Productivity Organization and the Thailand Productivity Centre, examined the key risks posed by climate change on agriculture and the actions that policymakers and planners need to take to address these risks.

Over 30 senior officials attached to agriculture, environment, and finance ministries from 20 economies participated in the workshop in Bangkok, Thailand. Participants shared practical experiences and explored ways to more effectively mainstream adaptation concerns into agricultural development planning. The program had six thematic sessions covering the following topics and included group discussions and a field visit.

The workshop provided a venue for robust discussions among delegates and highlighted practical experiences as well as creative thinking, emphasizing the fact that the Asia and Pacific region needs immediate measures—structural and non-structural—to adapt to climate change risks. The participants, through facilitated group discussions, devised adaptation roadmaps that need to be integrated in their sectoral planning in a phased manner. They also acknowledged the immediate need to link existing policies on climate risk with others such as drought and disaster management, structural adjustments, insurance schemes, and subsidies for better targeted and regionally coordinated actions.

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Outreach

ADBI continued efforts to raise the profile of the institute and to ensure that its outputs are

disseminated as widely as possible.

A D B I w a s r a n k e d t h e 1 0 t h b e s t government-affiliated think tank in the world in the 2011 Global Go To Think Tanks Report. The report is based on an international survey of more than 1,500 scholars, public and private donors, policymakers, and journalists from 120 countries.

ADBI continued to augment its outreach efforts to reach its target audiences of academics, policymakers, think tanks, the media, and the private sector.

The institute made use of the media in Japan and globally to highlight ADBI’s role and activities, particularly through

the Dean as ADBI’s chief spokesperson (see ADBI in the News).

Participating in external events is another effective way to promote ADBI’s work in the region and internationally. By the end of the year, the Dean had spoken by invitation at 51 external events, and ADBI staff had been invited to speak at many other conferences and seminars. For example, 11 ADBI experts delivered lectures in a course titled Asian Economic Development and Integration at the School of International and Public Policy, Hitotsubashi University (April–July 2012), and at the Graduate School of Public Policy, University of Tokyo (October 2012–January 2013).

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ADBI in the News

During 2012, ADBI activities were widely reported in the global media, including Bloomberg News, Financial Times, Reuters, and South China Morning Post, among others. Taking advantage of its location in central Tokyo, ADBI has ensured that its work was covered in the Japanese media, including Asahi Shimbun, Japan Times, Kyodo, Mainichi Shimbun, and The Nikkei.

As ADBI’s chief spokesperson, Dean Masahiro Kawai was interviewed or quoted in numerous international and regional media including Asia News Network, Bloomberg News, Business Times, Central Banking Journal, Chusun Online, Emerging Markets, The Nation, Philippine Daily Inquirer, Phnom Penh Post, and Reuters.

ADBI Deputy Dean Jae-ha Park was interviewed or quoted in the Bangkok Post, Korea Times, The Nation, and Thai News Service.

Research Director Ganeshan Wignaraja was interviewed or quoted in Latin American media including Aguasdigital.com, El Norte De Castilla.es, Ideal.es, Pysnnoticias, and Que!

CBT Director Yuqing Xing was interviewed or quoted in Bloomberg News, China Daily, Detroit Free Press, Japan Times, Shanghai Daily, and Xinhua News.

The ADB, ADBI, and Inter-American Development Bank book, Shaping the Future of the Asia and the Pacific-Latin America and the Caribbean Relationship, was reviewed by Foreign Affairs magazine. And the volume, Capital Market Reform in Asia, edited by Dean Masahiro Kawai and Andrew Sheng, was reviewed by The Hindu.

Business Times, Japan Times, and Kyodo News published articles on the ADBI seminar, Changing Myanmar: Challenges and Opportunities.

How the iPhone Widens the United States Trade Deficit with the People’s Republic of China, a 2010 working paper by CBT Director Yuqing Xing and Neal Detert, continued to receive wide media coverage, including in the Calgary Sun, Financial Post, New York Times, South China Morning Post, and Wall Street Journal.

Senior Consultant for Research Peter Morgan appeared on NHK World to discuss the outlook for the global economy.

Year in Review 2012

32

Website

ADBI.org is the key dissemination tool for ADBI’s knowl edge p roduc t s and unde rp in s ADBI ’s communications strategy. Website traffic remains steady as ADBI.org is regularly updated with new research publications, event announcements, and CBT workshop papers and presentations. Authors are informed when their papers and books are posted online and encouraged to share this information with their colleagues and networks.

For the year 2012, the average number of downloads from ADBI’s website was about 191,282 per month, a 95.28% increase over the average in 2011 when 1.27 million documents were downloaded from the site over the course of the year. This indicates the growing extent to which visitors to the ADBI website find the information there useful.

The most popular publication in 2012 was the book Infrastructure for a Seamless Asia, a position it has held since its publication in 2009. A total of 72,000 copies were downloaded during the year. A new book, Shaping the Future of the Asia and the Pacific-Latin America and the Caribbean Relationship, was the second most downloaded book during the year, with 40,000 downloads. The most downloaded working paper was Asia’s Wicked Environmental Problems, by Stephen Howes and Paul Wyrwoll, with 19,000 downloads.

Further evidence of the growth of a community of scholars and policymakers interested in the work of ADBI comes from the number of subscribers to e-notification, a service that notifies subscribers of additions to the ADBI website. From 6,681 at the end of 2010, the subscriber base soared to 15,431 by 31 December 2012, an increase of 139% in 2 years.

Other Electronic Media

In January 2012, ADBI launched the blog Asia Pathways. It publishes short original contributions on economic and development issues in the Asia and Pacific region. For the year, 50 articles were posted to Asia Pathways.

ADBI continued to strengthen its presence on various social media sites, attracting significant audiences to the ADBI accounts at Twitter, Facebook, and YouTube.

In 2012, ADBI launched the ADBI interview series, consisting of short video interviews with ADBI staff and visiting scholars. Presentations at distinguished speaker seminars are videotaped and posted on the ADBI YouTube channel.

In addition to making ADBI materials as freely available as possible from the ADBI website, ADBI makes its working papers and other research materials available to electronic networks of analysts and scholars. ADBI has accounts at Research Papers in Economics (RePEc), Academia, the Social Science Research Network (SSRN), and Scribd. Newly published materials are automatically deposited in these databases, thereby raising the profile of ADBI’s work in communities of economists and other researchers.

The attached table on page 36 lists ADBI’s initiatives in social media and research databases during 2012.

ADBI’s daily e-newsletter of development news (e-newsline) broke through the 5,000 subscriber level during the year, reaching 5,321 as of the end of 2012, an increase of about 30% over two years. This daily service provides concise summaries of stories in the English language press from across the region, enabling subscribers to keep abreast with events in countries that may not be their primary area of specialization. No other news service offers the same breadth of coverage. A subscription is free from ADBI.org. All e-newsline stories are archived on the ADBI website.

Outreach

33

Number of Downloads, 2012

201,006

246,693264,196

207,091

165,846

194,073177,204176,747

92,982

DecNovOctSepAugJulJunMayAprMarFebJan0

50,000

100,000

150,000

200,000

250,000

300,000

188,939 190,253190,355

E-notification Subscribers, 2012

DecNovOctSepAugJulJunMayAprMarFebJan

6,8127,103

7,4787,794

8,0658,340

8,5878,812

9,075

9,590

10,015

6,739

e-Notification

10,71611,179

12,118

13,201

3,764

14,202

15,11915,431

10,268

10,000

11,000

12,000

13,000

14,000

15,000

16,000

11,612

12,646

14,696

E-newsline Subscribers, 2012

DecNovOctSepAugJulJunMayAprMarFebJan4,600

4,700

4,800

4,900

5,000

5,100

5,200

5,300

5,400

e-Newsline

4,686

4,810

4,873

4,993

5,083

5,213

5,2765,321

4,631

4,747

4,939

5,139

Year in Review 2012

34

Working Papers

ADBI uploaded 60 working papers during the year, bringing the total number on the website to 400 by the end of 2012 (Appendix 5). PDF files of ADBI working papers are available for free on the ADBI website, adding to the value of the series for researchers on economic development in Asia and the Pacific region. The papers are also disseminated via networks including RePEc and the SSRN databases, and within ADB using ADB Today and ADB’s websites and journals.

Books ADBI published nine books in 2012, compared with five in 2011. The books were: Infrastructure for Asian Connectivity, Monetary and Currency Policy Management in Asia, and Implications of the Global Financial Crisis for Financial Reform and Regulation in Asia (all with Edward Elgar); Climate

Change in Asia and the Pacific: How Can Countries Adapt? and Capital Market Reform in Asia: Towards Developed and Integrated Markets in Times of Change (both with Sage Publications); The Global Financial Crisis and Asia (with Oxford University Press); Shaping the Future of the Asia and the Pacific-Latin America and the Caribbean Relationship (with ADB and the Inter-American Development Bank); Services Trade Approaches for the 21st Century (with the Pacific Economic Cooperation Council); and Service Sector Reforms Asia-Pacific Perspectives (with ARTNeT secretariat).

It also published four highlights books to promote larger works.

ADBI held five book dissemination events in 2012. At the ADB Annual Meeting in May, ADBI launched Shaping the Future of the Asia and the Pacific-Latin America and the Caribbean Relationship,

ADBI Dean Masahiro Kawai and David Mayes, professor at the University of Auckland, and Hyouk-Se Kwon, the Governor of the Korean Financial Supervisory Service, launch ADBI’s book, Implications of the Global Financial Crisis for Financial Reform and Regulation in Asia.

Outreach

35

and three highlights books: Policies and Practices for Low-Carbon Green Growth in Asia, ASEAN 2030: Toward a Borderless Economic Community, and ASEAN, the People’s Republic of China and India: The Great Transformation? A book launch and policy dialogue seminar was held for the new book, Implications of the Global Financial Crisis for Financial Sector Reform and Regulation in Asia, in April.

ADBI continues to seek the most appropriate publishing partners for its books based on a number of criteria, including the copublisher’s marketing strength and pricing policy. In 2012, ADBI co-published books with Oxford University Press (UK) and Sage (India) for the first time.

In 2011, ADBI News continued to cover ADBI events and placed a greater focus on longer, more analytical and interpretive pieces. ADBI News was disseminated at events held in ADBI’s Tokyo office and is available from the website.

Journal

During 2012, ADBI played an act ive role in preparations to relaunch the ADB journal Asian Development Review as an open access journal to be published with MIT Press. ADBI will be a joint sponsor of ADR with ADB, and Dean Masahiro Kawai will serve as the journal’s new Editor.

Conferences, Seminars, and WorkshopsADBI’s research products were disseminated at numerous conferences, seminars, and workshops during 2012, many of which were organized with other institutions. These events provided a platform for debate on emerging development issues in the region, and were aimed at soliciting comments on the preliminary drafts of ADBI’s research outputs as part of ADBI’s research quality-control and dissemination.

ADBI Engagement with Social Media and Research Databases in 2012

TwitterStart date: 16 February 2010URL: https://twitter.com/ADBInstituteNumber of followers as of 31 December 2012: 2,203

RePEcStart date: 20 February 2010URL: http://edirc.repec.org/data/adbinjp.htmlNumber of working paper downloads in 2012: 10,446

SSRNStart date: 24 March 2010URL: http://papers.ssrn.com/sol3/JELJOUR_Results.cfm?form_name=journalbrowse&journal_id=1559935Number of downloads in 2012: 16,886

ScribdStart date: 14 May 2010URL: www.scribd.com/ADBInstituteNumber of reads in 2012: 83,089

FacebookStart date: 1 October 2010URL: www.facebook.com/pages/Asian-Development-Bank-Institute/122064391180645Facebook likes in 2012: 2,024

RePEc = Research Papers in Economics, SSRN = Social Science Research Network.

Year in Review 2012

36

On 6 January 2012, ADBI launched Asia Pathways, a new blog. In its first year, Asia Pathways published 50 posts on a range of important contemporary issues in Asia and the Pacific. The blog aims to provide original thinking, presented in a readable and attractive form and to offer ADBI staff and ADBI’s extensive family of contacts an opportunity to put fresh ideas into the public realm quickly and easily.

Although Asia Pathways’ focus is primarily on economic matters, the editorial platform encompasses a wide range of development topics. Subjects covered in during 2012 included Myanmar’s exchange rate reforms, the Trans-Pacific Partnership, Singapore’s population conundrum, internationalization of the renminbi, and reform of Japan’s electric power industry.

Authors have included Ambassador Tommy Koh, former president of the United Nations Conference on the Law of the Sea and chair of the Earth Summit; Nobel laureate Muhammad Yunus, founder of Grameen Bank; and Tarisa Watanagase, former governor of the Bank of Thailand.

ADBI staff have also made significant contributions to Asia Pathways, as have senior staff from ADB HQ. The blog is playing an increasingly important role in consolidating relationships between researchers at ADBI and their counterparts at ADB HQ, who are often working in similar, and complementary, areas.

Asia Pathways is available at: www.asiapathways-adbi.org/. Interested readers can subscribe to an alert system on the blog, providing them with immediate notice of new posts.

Coordination with Other ADB Knowledge Departments

ADB’s four knowledge depar tments—ADBI, Economics and Research Department, Office of Regional Economic Integration, and Regional and Sustainable Development Department—have closely coordinated their work programs to improve synergy in their knowledge creation efforts. Examples of ADBI’s close collaboration with these departments include the following major projects: Disaster Risk Management in Asia and the Pacific, Strengthening ASEAN Transitional Economies, Latin America and the Caribbean–Asia Trade and Investment Links, and Pacific Island Economies 2030.

37

(as of 31 December 2012)

Senior Research

Fellow

Mr. Minquan Liu

Senior Capacity

Building Specialist

Mr. David Kruger

Legal Adviser &

Senior Administrative

Officer

Mr. Grant B. Stillman

Senior Communications

SpecialistMr. Alastair Dingwall

Mr. Tomokata Higuchi(Placement by JWA)

Capacity Building

Specialist

Mr. Anbumozhi Venkatachalam

Program Coordinator

Ms. Mihoko Saito

Program Coordinator

Ms. Kayo Tsuchiya

Advisory Council

Ms. Cinnamon Dornsife Mr. Masahisa FujitaMr. Sebastian Paust Mr. James Richard GillingMr. Shri Ajit Kumar Seth Mr. Justin Yifu LinMr. Changyong Rhee

Visiting Fellows/

Scholars/

Researchers

Mr. Masahiko Aoki

(Japan)

Mr. Yasuyuki Sawada(Japan)

Director for Administration, Management &

Coordination

Mr. Yasuro Narita

Director for Capacity Building

and Training

Mr. Yuqing Xing

Administrative

Officer

Mr. Tsuyoshi Hyokai

Assistant to Dean

Ms. Yumiko Hoshino

Accountant

Ms. Ai Miyamoto

Administrative

Coordinator

Ms. Yasue Nagai

Director for Research

Mr. Ganeshan Wignaraja

Dean and CEO

Mr. Masahiro KawaiDeputy Dean for special Activities

Mr. Jae-Ha Park

Senior Research

Fellow

(Vacant)

Research Fellow

(Vacant)

Research Fellow

Mr. Victor Pontines

Mr. Atsushi Masuda(Placement by JBIC)

Capacity

Building Economist

Ms. Ha-Yan Lee

Special Adviser

to Dean

Mr. Giovanni Capannelli

Senior

Consultant for

Research

Mr. Peter Morgan

Consultant for

Capacity Building

and Training

Mr. Muhammad Cholifihani

Appendix 1: Organization Chart

38

Appendix 2: Deans and Advisory Council Members

Table A2.1: Deans, 1997 to Present

Dean Tenure Nationality

Masahiro Kawai January 2007 to Present Japan

Peter McCawley January 2003–January 2007 Australia

Masaru Yoshitomi January 1999–January 2003 Japan

Jesus P. Estanislao December 1997–January 1999 Philippines

Table A2.2: Advisory Council Members, 1998 to Present

Regional Borrowing

Member Countries

Regional Non-Borrowing

Member Countries

Non-Regional

Non-Borrowing

Member Countries

ADB

2012–2014 Justin Yifu Lin

(PRC)

Masahisa Fujita

(Japan)

Cinnamon Dornsife

(US) Changyong Rhee

Chief EconomistAjit Kumar Seth

(India)

James Richard Gilling

(Australia)

Sebastian Paust

(Germany)

2010–2012 Li Yong

(PRC)

Masahisa Fujita

(Japan)

Cinnamon Dornsife

(US)Changyong Rhee

Chief Economist

(joined in February 2011)Sanjiv Misra

(India)

Stephen Howes

(Australia)

Eric Girardin

(France)

2008–2010 Gang Fan

(PRC)

Masahiko Aoki

(Japan)

Victor H. Frank, Jr.

(US) Jong-Wha Lee

Chief EconomistK. M. Chandrasekhar

(India)

Andrew MacIntyre

(Australia)

Eric Girardin

(France)

2006–2008 Li Yong

(PRC)

Masahiko Aoki

(Japan)

Victor H. Frank, Jr.

(US) Ifzal Ali

Chief EconomistAjit K. Jain

(India)

Andrew Maclntyre

(Australia)

Eric Girardin

(France)

2004–2006 Li Yong

(PRC)

Masahiko Aoki

(Japan)

William P. Fuller

(US) Ifzal Ali

Chief EconomistCorattiyil Ramachandran

(India)

Kanit Sangsupan

(Thailand)

Eric Girardin

(France)

2002–2004 Zhang Xiaoqiang

(PRC)

Yujiro Hayami

(Japan)

William P. Fuller

(US) Ifzal Ali

Chief EconomistN. C. Saxena

(India)

Ronald Charles Duncan

(Australia)

Magnus Blomström

(Sweden)

2000–2002 Zhang Xiaoqiang

(PRC)

Yujiro Hayami

(Japan)

William P. Fuller

(US) Arvind Panagariya

Chief EconomistY. Venugopal Reddy

(India)

Ronald Charles Duncan

(Australia)

Magnus Blomström

(Sweden)

1998–2000 Justin Yifu Lin

(PRC)

Yonosuke Hara

(Japan)

Jeffrey R. Shafer

(US) Jungsoo Lee

Chief EconomistChandi Chanmugam

(Sri Lanka)

Helen Hughes

(Australia)

Fabrizio Onida

(Italy)

39

Date Event Event Location

Major Conferences

18–19 JanADBI–OECD Conference on Services Trade in Selected Sectors: Audiovisual

services, Higher Education, and Financial Services Delhi

31 Jan Seventh LAEBA Annual Meeting – Taking Stock of the LAC-Asia Relationship Washington, DC

12 Mar ADBI–NEAR Joint Conference Lessons from Japan: Is Japan Korea’s Future? Seoul

14 MarADBI-PRI Conference: Achieving Financial Stability-Lessons from the Eurozone Crisis for

Macroeconomic and Financial StabilityTokyo

19 Mar LAC-ASIA: Opportunities and Challenges of a Long-Term Relationship Montevideo

26–27 MarADBI-RSIS Conference: The Evolving Global Architecture: From a Centralized

to a Decentralized SystemSingapore

30–31 Mar Climate Change and Green Asia Policy Conference Seoul

15–16 MayAsian Development Review: Development Issues Conference 2012 – Development Issues in

Asia 2012 Manila

4 Jun EU Responses to the European Sovereign Debt Crisis Tokyo

29–30 Jun NBER Japan Project Meeting Tokyo

7–9 Oct Conference on Global Economic Cooperation: Views from G20 Countries Delhi

12 Oct The Eurozone Crisis and Its Implications for Asian Economies Tokyo

23 Oct Changing Pacific Economy: Future Trends and Developments Tokyo

7 Nov The 2nd Asian Development Review Conference Manila

30 Nov ADBI Annual Conference on Growth and Regional Cooperation and Integration

in Asia and the Pacific in 2013 and BeyondTokyo

Workshops and Seminars

15 Jan Fact-Finding Mission and Follow-up Meeting for the Strengthening ASEAN

Transitional Economies Study Yangon

17 Jan ASEAN 2030 SEOM Meeting Siem Riep

18–19 JanFact-Finding Mission and Follow-up Meeting for the Strengthening ASEAN Transitional

Economies StudyJakarta

19–20 Jan Climate Change and Green Asia – Book Discussion Forum Jakarta

5–6 Feb ASEAN 2030 Study High Level Task Force Meeting Bangkok

27 Feb Role of Key Emerging Economies–ASEAN, PRC, and India – for a Balanced, Sustainable, and

Resilient AsiaTokyo

27–29 Feb ASEAN 2030 Study AEM Retreat Phnom Penh

1–2 March Consultation Missions in Preparation of New CLMV Project Vientiane

Appendix 3: Research Events

40

Year in Review 2012

Date Event Event Location

5–7 March Consultation Missions in Preparation of New CLMV Project Phnom Penh

8–9 March ASEAN 2030 Highlights Finalization Meeting Bangkok

8 Mar Disaster Risk Management – Brainstorming Meeting Tokyo

21 MarRole of Key Emerging Economies–ASEAN, PRC, and India – for a Balanced,

Sustainable, and Resilient Asia Highlights PresentationTokyo

28 MarSeminar by Andrea Finicelli – Current Account Benchmarks: Methodological

Advances and Some New Estimates Tokyo

26–31 Mar Consultation Missions in Preparation of New CLMV Project Myanmar

2 Apr ASEAN 2030 Study AEC Council Phnom Penh

16 Apr ADB (ERD)–ADBI Joint Seminar on the Asian Development Outlook 2012 Tokyo

17 Apr Seminar by Hali J. Edison – Research at the IMF: Relevance and Utilization an IEO Evaluation Tokyo

23–25 Apr Consultation Missions in Preparation of New CLMV Project Hanoi

1 May Seminar by Rasmus Fatum – Does Foreign Exchange Intervention Volume Matter? Tokyo

3 May ADB Annual Meeting: Climate Change and Green Asia Manila

5 May Asia – Latin America: Forging a Long-Term Partnership Manila

14 May Seminar by Cyn-Young Park – Asian Capital Market Integration: Theory and Practice Tokyo

22 May Seminar by Renu Kohli – India’s Current Macroeconomic Issues Tokyo

5–6 JunExperts Meeting of the Thematic Area on Agricultural Productivity and Natural Resources

Management for the CLMV Project Tokyo

5 Jun Changing Myanmar: Challenges and Opportunities Tokyo

6 Jun Seminar by Alejandro Jar – What Next for Doha and WTO? Tokyo

18 JunSeminar by Professor Insukindro – Foreign Portfolio Flows and Their

Implications for the Effectiveness of Indonesian Monetary PolicyTokyo

2 JulSeminar by Douglas H. Brooks – Importance of International Supply Chains to

the Performance of APEC Developing Economies Tokyo

3 Jul ADBI–IDB Seminar: Shaping the Future of the Asia and the Pacific – Latin America and the

Caribbean Relationship Tokyo

31 Aug Future of the World Trading System: Asian Perspectives Tokyo

27 Sep Seminar by Manmohan Parkash – Infrastructure Development in South and Southeast Asia Tokyo

11 Oct EBRD Dissemination Seminar on Russian Diversification Tokyo

11 Oct The PRC’s Thirst for Commodities and Impact on Latin America Tokyo

12 Oct The Eurozone Crisis and Its Implications for Asian Economies Tokyo

13 Oct Beyond Nimbyism: Towards Integrated Reforms for Financing Green Growth Tokyo

41

Appendix 3: Research Events

Date Event Event Location

13 OctAsia-LAC High Level Economic Policy Forum – Asia-Latin America: New

Engines of Growth of the Global Economy? Tokyo

16 Oct Seminar by Alejandro Jara: Latin America and Asia – More Cooperation and Trade Tokyo

29 Oct Disaster Risk Management in Asia and Pacific: Inception Meeting Tokyo

1 Nov Seminar by Pati Poblete – The Ecological Footprint-Global and Asia Overview Tokyo

6 Dec Seminar on the Future of Asia’s Trade Agreements Beijing

11 Dec Seminar by El-hadj Bah – Growth Constraints on Small Companies in Myanmar Tokyo

14 DecSeminar by Gregory Chin – Renminbi Internationalization: Asian Interests, Motivations, and

ObjectivesTokyo

17–18 Dec Connectivity in South and Southeast Asia—Inception Meeting Manila

Distinguished Speaker Seminars

9 Feb Andrew Sheng – The Seven Distortions of the Global Economy Tokyo

24 FebDaniele Franco and Gianni Toniolo – Eurozone Sovereign Debt Crisis: Current and Historical

Perspectives Tokyo

29 Feb Justin Lin – Demystifying the Chinese Economy Tokyo

9 Apr Carlo Filippini – Will the Euro Celebrate Its 14th Birthday? Tokyo

23 Apr Joseph Gagnon – Flexible Exchange Rates for a Stable World Tokyo

7 May Ronald McKinnon – Carry Trades, Interest Differentials, and International Monetary Reform Tokyo

25 May Olarn Chaipravat – The Future of Asia Tokyo

31 May Kent E. Calder – The New Continentalism: Energy and Twenty-First Century Eurasian Geopolitics Tokyo

25 Jul George Hara, Masaharu Okada, Muhammad Yunus, Shozaburo Jimi,

Yasuchika Hasegawa – Symposium: Toward A New CapitalismTokyo

30 Aug Patrick Low – Old Issues and New Frontiers: Managing Non-Tariff Measures Tokyo

25 Sep Dale W. Jorgenson – The Rise of Asia and the New World Order Tokyo

26 Oct Nicolas Veron – The Eurozone Crisis: Causes and Prospects Tokyo

14 Nov Paola Subacchi – The Road to Fiscal Union in the Eurozone: Fantasy or Reality? Tokyo

Book Launches

27 Mar Monetary and Currency Policy Management in Asia Singapore

26 Apr Implications of Global Financial Crisis for Financial Sector Reform and Regulation in Asia Tokyo

5 May Shaping the Future of the Asia and the Pacific – Latin America and the Caribbean Relationship Manila

42

Number of Participants in Capacity Building and Training Activities, 2012

Date Course or WorkshopTotal

ParticipantsEvent Location

Inclusive and Sustainable Growth

18–29 Jan The 2nd ADBI-OECD Roundtable on Labor Migration in Asia: Managing Migration

to Support Inclusive and Sustainable Growth71 Tokyo

19–20 Jan Climate Change and Green Asia – Book Discussion Forum 71 Jakarta

30–31 Mar Climate Change and Green Asia Policy Conference 60 Seoul

Dec–Apr 30 8th Microfinance Training of Trainers: A Blended Distance Learning Course 338 Tokyo

26 AprBook Launch and Policy Dialogue Seminar: Implications of Global Financial Crisis

for Financial Sector Reform and Regulation in Asia12 Tokyo

7–9 May The 3rd High-Level Policy Roundtable on International Investment Policies in Asia:

Responsibility and Sustainability32 Shanghai

16–18 May Production Networks and Trade Policy in Turbulent Times 43 Manila

5–6 Jun

CLMV Project – Supporting Equitable Economic Development in ASEAN: Experts

Meeting of the Thematic Area: Agricultural

Productivity and Natural Resources Management

42 Tokyo

25–27 JunAsia-Pacific Forum on Financial Inclusion: Approaches, Regulations, and Cross-

Border Issues45 Shanghai

10–12 Jul High-Level Meeting: Towards Country-led Knowledge Hubs 344 Bali

26–28 SepSub-regional Workshop on Millennium Development Goals for Central and East

Asia78 Almaty, Kazakhstan

17–18 OctA Regional Policy Forum: Regulatory Environments to Promote Financial Inclusion

in Developing APEC and Other Regional Economies25 Melbourne

17–18 Oct Capacity Building Workshop on PPP Infrastructure Project Modeling 22 Singapore

23–25 Oct Effective Policies and Experiences for Poverty Reduction in Asia 41 Kunming

2–9 Nov7th NARBO IWRM Training – Solutions to Water Sector Issues through IWRM: The

Mahaweli River Basin Experience 27 Sri Lanka

19–23 Nov Workshop on Agricultural Adaptations to Climate Change 36 Bangkok

27–30 Nov Developing Asia Journalism Awards 2012 25 Tokyo

11–15 DecCLMV Project Training Program: Developing Viable Seed Industries in Cambodia,

Lao PDR, Myanmar, and Viet Nam31 Khon Kaen, Thailand

Regional Cooperation and Integration

7–8 Feb OECD–ADBI 12th Roundtable on Capital Market Reform in Asia 75 Tokyo

21 May Renminbi Internationalization: Japan and the People’s Republic of China 78 Beijing

Appendix 4: Capacity Building and Training Events

43

Appendix 4: Capacity Building and Training Events

Date Course or WorkshopTotal

ParticipantsEvent Location

2–3 JulWays Forward for Corridor-Based Transport Facilitation Agreements in the CAREC

Region25 Beijing

24–26 Jul Managing the WTO Accession Process: Strategies, Challenges and Practices 26 Shanghai

12–13 SepADBI–World Bank Roundtable on Regional Commodity Exchange Market

Integration in Asia27 Tokyo

25–26 SepInternational Conference on Production Networks, Value-added, and Trade

Statistics Reforms20 Beijing

1 Oct Policy Dialogue – ASEAN, the PRC, and India: The Great Transformation? 25 Manila

8–10 Oct Workshop on Sharing Asian Experiences: Promoting FDI Effectively 15 Singapore

Governance for Policies and Institutions

21–24 Feb Public-Private Partnership Days 2012 200 Geneva

5–9 MarImplementing Best Practice Regulatory Principles and Proportionate Regulation to

Support MSME Access to Finance24 Melbourne

2–3 MayThe 8th East Asia Top Level Officials' Meeting on Competition Policy and the 7th

East Asia Conference on Competition Law and Policy144 Kuala Lumpur

5–9 Nov PPP in Infrastructure Development – Basics for Negotiation 20 Marseilles

44

Books

ADBI. 2012. ADBI: Year in Review 2011. Tokyo: ADBI

Anbumozhi, V., M. Breiling, S. Pathmararajah, V. Reddy. eds. 2012. Climate Change in Asia and the Pacific: How Can Countries Adapt? Tokyo and Delhi: ADBI and Sage.

Bhattacharyay, B., M. Kawai, and R. Nag. eds. 2012. Infrastructure for Asian Connectivity. Tokyo and Cheltenham, United Kingdom: ADBI and Edward Elgar.

Kawai, M., M. Lamberte, and Y. C. Park. eds. 2012. The Global Financial Crisis and Asia. Tokyo and Oxford: ADBI and Oxford University Press.

Kawai, M., D. Mayes, and P. Morgan. eds. 2012. Implications of the Global Financial Crisis for Financial Reform and Regulation in Asia. Tokyo and Cheltenham, United Kingdom: ADBI and Edward Elgar.

Kawai, M., P. Morgan, and S. Takagi. eds. 2012. Monetary and Currency Policy Management in Asia. Tokyo and Cheltenham, United Kingdom: ADBI and Edward Elgar.

Kawai, M., and A. Sheng. eds. 2012. Capital Market Reform in Asia. Tokyo and Delhi: ADBI and Sage.

Working PapersAndrew K. RoseInternational Financial Integration and Crisis IntensityWorking Paper 341, January

Takashi KiharaEffective Development Aid: Selectivity, Proliferation and Fragmentation, and the Growth Impact of Development

Assistance Working Paper 342, January

Gregory ChinResponding to the Global Financial Crisis: The Evolution of Asian Regionalism and Economic GlobalizationWorking Paper 343, January

Amitav AcharyaFoundations of Collective Action in Asia: Theory and Practice of Regional CooperationWorking Paper 344, February

Peter J. Morgan and Mario LamberteStrengthening Financial InfrastructureWorking Paper 345, February

Peter J. Morgan and Mario LamberteRegional and Global Monetary CooperationWorking Paper 346, February

Ulrich VolzLessons of the European Crisis for Regional Monetary and Financial Integration in East Asia Working Paper 347, February

Stephen Howes and Paul WyrwollAsia’s Wicked Environmental Problems Working Paper 348, February

Appendix 5: Selected ADBI Publications

45

Appendix 5: Selected ADBI Publications

Ben Shepherd and Gloria PasadillaServices as a New Engine of Growth for ASEAN, the People’s Republic of China, and IndiaWorking Paper 349, March

Kaliappa KalirajanRegional Cooperation towards Green Asia: Trade and Investment Working Paper 350, April

Armando BarrientosWhat is the Role of Social Pensions in Asia? Working Paper 351, April

Qwanruedee Chotichanathawewong and Natapol Thongplew Development Trajectories, Emission Profile, and Policy Actions: ThailandWorking Paper 352, April

Amlan RoyInnovative Approaches to Managing Longevity Risk in Asia: Lessons from the WestWorking Paper 353, April

Yeongkwan SongAudiovisual Services in Korea: Market Development and PoliciesWorking Paper 354, April

Gillian DoyleAudio-visual Services: International Trade and Cultural PolicyWorking Paper 355, April

Abhijit Sen GuptaExchange Rate Coordination in Asia: Evidence using the Asian Currency UnitWorking Paper 356, April

Yuqing XingThe People’s Republic of China’s High-Tech Exports: Myth and RealityWorking Paper 357, April

Donghyun Park and Gemma EstradaDeveloping Asia’s Pension Systems and Old-Age Income Support Working Paper 358, April

Heinrich-Wilhelm Wyes and Michael Lewandowski Narrowing the Gaps through Regional Cooperation Institutions and Governance SystemsWorking Paper 359, May

Yuwei Hu Growth of Asian Pension Assets: Implications for Financial and Capital Markets Working Paper 360, May

Ganeshan WignarajaEngaging Small and Medium Enterprises in Production Networks: Firm-level Analysis of Five ASEAN EconomiesWorking Paper 361, June

46

Year in Review 2012

Stephen Grenville Rethinking Capital Flows for Emerging East Asia Working Paper 362, June

Chalongphob SussangkarnPrevention and Resolution of Foreign Exchange Crises in East AsiaWorking Paper 363, June

Yung Chul Park and Charles WyploszInternational Monetary Reform: A Critical Appraisal of Some Proposals Working Paper 364, June

Ganeshan WignarajaDo Exporting Firms in the People’s Republic of China Innovate?Working Paper 365, July

Yongding YuRevisiting the Internationalization of the YuanWorking Paper 366, July

Pek Koon Heng ASEAN Integration in 2030: United States PerspectivesWorking Paper 367, July

Kym Anderson and Anna StruttAgriculture and Food Security in Asia by 2030Working Paper 368, July

Stephen Howes and Paul WyrwollClimate Change Mitigation and Green Growth in Developing AsiaWorking Paper 369, July

Stefan CollignonEurope’s Debt Crisis, Coordination Failure, and International EffectsWorking Paper 370, July

Jeffrey D. Sachs and Shiv Someshwar Green Growth and Equity in the Context of Climate Change: Some ConsiderationsWorking Paper 371, July

Andrew F. CooperThe Group of Twenty: Input and Output Legitimacy, Reforms, and AgendaWorking Paper 372, August

José Antonio Ocampo and Daniel Titelman Regional Monetary Cooperation in Latin AmericaWorking Paper 373, August

Azad Singh Bali and Mukul G. Asher Coordinating Healthcare and Pension Policies: An Exploratory StudyWorking Paper 374, August

47

Appendix 5: Selected ADBI Publications

Giovanni Capannelli and See Seng TanInstitutions for Asian Integration: Innovation and ReformWorking Paper 375, August

Masahiro Kawai and Peter J. MorganJapan’s Post-Triple-Disaster Growth StrategyWorking Paper 376, August Masahiro Kawai and Peter J. MorganCentral Banking for Financial Stability in AsiaWorking Paper 377, August

Yung Chul Park and Shinji TakagiManaging Capital Flows in an Economic Community: The Case of ASEAN Capital Account LiberalizationWorking Paper 378, August

Larry D. WallCentral Banking for Financial Stability: Some Lessons from the Recent Instability in the United States and Euro AreaWorking Paper 379, August

Fernando PradaWorld Bank, Inter-American Development Bank, and Subregional Development Banks in Latin America: Dynamics of a

System of Multilateral Development BanksWorking Paper 380, September

Hiro Ito and Masahiro KawaiNew Measures of the Trilemma Hypothesis: Implications for AsiaWorking Paper 381, September

Ganeshan Wignaraja, Dorothea Ramizo, and Luca Burmeister Asia-Latin America Free Trade Agreements: An Instrument for Inter-Regional Liberalization and Integration?Working Paper 382, September

Udaibir S. Das, Maria A. Oliva, and Takahiro TsudaSovereign Risk: A Macro-Financial PerspectiveWorking Paper 383, October

Michael G. PlummerThe Emerging “Post-Doha” Agenda and the New Regionalism in the Asia-PacificWorking Paper 384, October

Vikram Nehru The World Bank and the Asian Development Bank: Should Asia Have Both?Working Paper 385, October

Victor Pontines and Reza Y. SiregarHow Should We Bank With Foreigners?–An Empirical Assessment of Lending Behavior of International Banks to Six East

Asian EconomiesWorking Paper 386, October

48

Year in Review 2012

E. J. Wilson, K. Jayanthakumaran, and R. VermaDemographics, Labor Mobility, and ProductivityWorking Paper 387, October

Mun-Heng TohInternationalization of Tertiary Education Services in SingaporeWorking Paper 388, October

Francisco Ceballos, Tatiana Didier, and Sergio L. SchmuklerFinancial Globalization in Emerging Countries: Diversification vs. OffshoringWorking Paper 389, October

Shinji TakagiEstablishing Monetary Union in the Gulf Cooperation Council: What Lessons for Regional Cooperation?Working Paper 390, October

Tarisa WatanagaseImpact of Changes in the Global Financial Regulatory Landscape on Asian Emerging MarketsWorking Paper 391, October

Viral V. AcharyaThe Dodd-Frank Act and Basel III: Intentions, Unintended Consequences, and Lessons for Emerging MarketsWorking Paper 392, October

Hiro Ito and Ulrich VolzThe People’s Republic of China and Global Imbalances from a View of Sectorial ReformsWorking Paper 393, November

Barry EichengreenRegional Financial Arrangements and the International Monetary FundWorking Paper 394, November

Hal Hill and Jayant Menon Financial Safety Nets in Asia: Genesis, Evolution, Adequacy, and Way ForwardWorking Paper 395, November

Joshua Aizenman, Minsoo Lee, and Donghyun ParkThe Relationship between Structural Change and Inequality: A Conceptual Overview with Special Reference to Developing

AsiaWorking Paper 396, November

Masahiko AokiHistorical Sources of Institutional Trajectories in Economic Development: China, Japan, and Korea ComparedWorking Paper 397, November

Brahmanand Mohanty, Martin Scherfler, and Vikram DevathaLifestyle Choices and Societal Behavior Changes as Local Climate StrategyWorking Paper 398, November

Tomohiro Machikita and Yasushi UekiImpact of Production Linkages on Industrial Upgrading in ASEAN, the People’s Republic of China, and India:

Organizational Evidence of a Global Supply ChainWorking Paper 399, November

49

Appendix 5: Selected ADBI Publications

Erica Clower and Hiro ItoThe Persistence of Current Account Balances and its Determinants: The Implications for Global RebalancingWorking Paper 400, December

Other Books, Book Chapters, Articles in Refereed JournalsAnbumozhi, V. 2012. Enhancing Adaptive Capacity in the Asia Pacific Region: Opportunities for Innovation and

Experimentation. In Climate Change in Asia and the Pacific: How Can Countries Adapt? Edited by V. Anbumozhi et al. Delhi: Sage.

———. 2012. Framework Conditions for Integrating Climate Change Adaptation into Natural Resource Planning. In Climate Change in Asia and the Pacific: How Can Countries Adapt? Edited by V. Anbumozhi et al. Delhi: Sage.

Anbumozhi, V., and A. Patunuru. 2012. Nationally Appropriate Mitigation Actions and Financing the Green Growth. Asian Journal of Environmental Policy and Governance. 21 (1). pp. 70–81.

Anbumozhi, V. et al. 2012. Conclusions, Policy Implications, and the Way Forward. In Climate Change in Asia and the Pacific: How Countries Can Adapt? Edited by V. Anbumozhi et al. Delhi: Sage.

———. 2012. Monitoring Vulnerability and Adaptation Planning for Food Security. In Climate Change in Asia and the Pacific: How Countries Can Adapt? Edited by V. Anbumozhi et al. Delhi: Sage.

Benassy-Quere, A., H. Fan, M. Kawai, T.J. Kim, Y.C. Park, J. Pisani-Ferry, D. Vines, and Y. Yongding. 2012. Don’t Let the Eurozone Crisis Go East. La lettre du CEPII. No. 318. Paris: Centre d’Etudes Prospectives et d’Informations Internationales.

Bhattacharyay, B. 2012. Estimating Demand for Infrastructure, 2010–2020. In Infrastructure for Asian Connectivity. Edited by B. Bhattacharyay, M. Kawai, and R.M. Nag. Tokyo and Cheltenham, UK: ADBI and Edward Elgar.

———. 2012. Modes of International Financial Integration: Financing Infrastructure. In Infrastructure for Asian Connectivity. Edited by B. Bhattacharyay, M. Kawai, and R.M. Nag. Tokyo and Cheltenham, UK: ADBI and Edward Elgar.

Bhattacharyay, B., M. Kawai, and R.M. Nag. 2012. Introduction. In Infrastructure for Asian Connectivity. Edited by B. Bhattacharyay, M. Kawai, and R.M. Nag. Tokyo and Cheltenham, UK: ADBI and Edward Elgar.

Burmeister, L., D. Ramizo and G. Wignaraja. 2012. Asia and the Pacific-LAC FTAs: An Assessment. In Shaping the Future of Asia and the Pacific-Latin America and the Caribbean Relationship. Tokyo and Washington, DC: Asian Development Bank and Inter American Development Bank.

Cavoli, T., V. Pontines, and R. Rajan. 2012. Managed Floating by Stealth. Journal of Asia and the Pacific Economy. 17 (3). pp. 514–526.

Fujii, M., and M. Kawai. 2012. Lessons from Japan’s Banking Crisis: 1991–2005. In Research Handbook on International Financial Regulation. Edited by K. Alexander and R. Dhumale. Cheltenham and Northampton: Edward Elgar.

Ito, H., and M. Kawai. 2012. The Trilemma Challenge for SEACEN Member Economies: Testing the Trilemma Hypothesis. In Exchange Rate Appreciation, Capital Flows and Excess Liquidity. Edited by V. Pontines and R.Y. Siregar. Kuala Lumpur: The SEACEN Centre.

Kato, A., and W. Thorbecke. 2012. The Effect of Exchange Rate Changes on Japanese Consumption Exports. Japan and the World Economy. 24 (1). pp. 64–71.

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Year in Review 2012

Kawai, M. 2012. Scope for Regional Exchange Rate Policy Coordination in Asia. In Proceedings of the First SEACEN–CEMLA Conference – The Implementation of Monetary Policy: Lessons from the Crisis and Challenges for the Coming Years. Kuala Lumpur: The SEACEN Centre. pp. 461–473.

———. 2012. Capital Inflows and Regional Policy Cooperation. (A panel presentation at the ADB Forum on the Use of Capital Controls). Asian Development Review. 29 (1). pp. 112–118.

Kawai, M., M.B. Lamberte and S. Takagi. 2012. Managing Capital Flows: Lessons from the Recent Experiences of Emerging Asian Economies. In Regulating Global Capital Flows for Long-Run Development. Edited by K. P. Gallagher, S. Griffith-Jones, and J. A. Ocampo. Boston: Boston University Creative Services.

Kawai, M., and D. Lombardi. 2012. Financial Regionalism. Finance & Development. 49 (3). pp. 23–25.

Kawai, M., and P. Morgan. 2012. Central Banking for Financial Stability in Asia. Public Policy Review. 8 (3). pp. 215–246.

Kawai, M., and M. Pomerleano. 2012. Strengthening Systemic Financial Regulation. In Implications of the Global Financial Crisis for Financial Reform and Regulation in Asia. Edited by M. Kawai, D.G. Mayes and P.J. Morgan. Cheltenham, UK: Edward Elgar.

Kawai, M., and S. Takagi. 2012. A Proposal for Exchange Rate Policy Coordination in East Asia. In Monetary and Currency Policy Management in Asia. Edited by M. Kawai, P.J. Morgan and S. Takagi. Cheltenham, UK: Edward Elgar.

Kawai, M., and S. Urata. 2012. Changing Commercial Policy in Japan, 1985–2010. In The Oxford Handbook of International Commercial Policy. Edited by M.E. Kreinin and M.G. Plummer. Oxford and New York: Oxford University Press.

Kawai, M., and F. Zhai. 2012. Asia’s Post-Global Financial Crisis Adjustment: A Model-Based Dynamic Analysis. In Monetary and Currency Policy Management in Asia. Edited by M. Kawai, P.J. Morgan and S. Takagi. Cheltenham, UK: Edward Elgar.

———. 2012. China-Latin America Economic Cooperation: Going beyond Resource and Manufacturing Complementarity. In Sino-Latin American Economic Relations. Edited by K. C. Fung and A. Garcia-Herrero. London and New York: Routledge.

Li, H., M. Liu, A.M. Liu, and Wang, J.Q., T. Wei. 2012. Global Health Governance in China: the Case of China’s Health Aid to Foreign Countries. In Asia’s Role in Governing Global Health. Edited by K. Lee, T. Pang and Y. Tan. Abingdon, UK: Routledge.

Liu, M., 2012. Growth and Equity in the PRC: Pattern, Causes and Challenges. Journal of International Commerce, Economics and Policy. 3 (3). pp. 1–22.

Liu, M., and S. Hossain. 2012. Disasters and Supply Chains in the Region. State of the Region: 2012-2013. Pacific Economic Cooperation Council. pp. 9–11.

Liu, M. et al. 2012. Public Funding for Maternal and Child Healthcare in China: Funding Modalities and Cost Estimates (in Chinese). Beijing: Science Press.

Mayes, D., and P. Morgan. 2012. The Global Financial Crisis and its Implications for Financial Sector Reform and Regulation in Asia. In Implications of the Global Financial Crisis for Financial Sector Reform and Regulation in Asia. Edited by M. Kawai, D. Mayes, and P. Morgan. Cheltenham, UK: Edward Elgar.

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Appendix 5: Selected ADBI Publications

Mikic, M., G. Pasadilla, and P. Sauve. 2012. Service sector reforms: Asia-Pacific perspectives. In Service Sector Reforms: Asia-Pacific Perspectives. Edited by M. Mikic, G. Pasadilla, and P. Sauve. Bangkok: ARTNeT secretariat.

Morgan, P. 2012. The Role and Effectiveness of Unconventional Monetary Policy. In Monetary and Currency Policy Management in Asia. Edited by M. Kawai, P. Morgan and S. Takagi. Cheltenham, UK: Edward Elgar.

———. P. 2012. The Role of Macroeconomic Policy in Rebalancing Growth. Journal of Asian Economics. 23 (1). pp. 12–35.

Parulian, F., and V. Pontines. 2012. The Nexus Between Business Cycle Synchronization and Financial Integration in the Asia-and Pacific Region. In Real and Financial Integration in East Asia. Edited by S. Thangavelu, A. Chongvilavan and F. Parulian. UK: Routledge.

Pasadilla, G. 2012. Asia and the Pacific-LAC Investments: The Glue That Can Bind the Two Regions. In Shaping the Future of Asia and the Pacific-Latin America and the Caribbean Relationship. Manila: Asian Development Bank.

Pasadilla, G., and B. Shepherd. 2012. Trade in Services and Human Development: A First Look at the Links. In Service Sector Reforms: Asia-Pacific Perspectives. Edited by M. Mikic, G. Pasadilla, and P. Sauve. Bangkok: ARTNeT secretariat.

Pontines, V., and R. Siregar. 2012. Exchange Rate Asymmetry and Flexible Exchange Rates under Inflation Targeting Regimes: Evidence from Four East and Southeast Asian Countries. Review of International Economics. 20 (5). pp. 893–908.

———. 2012. Fear of Appreciation in East and Southeast Asia: The Role of the Chinese Renminbi. Journal of Asian Economics. 23 (4). pp. 324–334.

Wignaraja, G. 2012. Commercial Policy and Experience in the Giants: China and India. In International Commercial Policy. Edited by M.E. Kreinin and M.G. Plummer. New York: Oxford University Press.

———. 2012. Innovation, learning, and exporting in China: Does R&D or a Technology Index Matter? Journal of Asian Economics. 23 (3). pp. 224–233.

Xing, Y. 2012. Processing Trade, Exchange Rates and China’s Bilateral Trade Balances. Journal of Asian Economics. 23 (5). pp. 540–547.

52

Appendix 6: Top 30 Downloads of 2012

ADBI Top Downloads 2012 Year Category

1 Infrastructure for a Seamless Asia (ADB and ADBI) 2009 Book

2Shaping the Future of the Asia and the Pacific-Latin America and the Caribbean Relationship

(ADB, ADBI, and IADB) 2012 Book

3 Lessons of the European Crisis for Regional Monetary and Financial Integration in East Asia (U. Volz) 2012 Working Paper

4 Corporate Social Responsibility and Public Policy (K. Tanimoto) 2007 Seminar Materials

5 Public-Private Partnerships in the Social Sector (Y. Wang) 2000 Book

6 Asia’s Wicked Environmental Problems (S. Howes and P. Wyrwoll) 2012 Working Paper

7 Service Sector Reforms Asia-Pacific Perspectives (P. Sauvé, G. Pasadilla and M. Mikic) 2012 Book

8 The Global Financial Crisis, Future of the Dollar, and the Choice for Asia (D. Chung and M. Kawai, eds.) 2011 Book

9 The Role of Credit Rating Agencies (M. Habir) 2004 Seminar Materials

10 The Global Economic Crisis: Impact on India and Policy Responses (R. Kumar and P. Vashisht) 2009 Working Paper

11 Successful Wastewater Management in Singapore (R. Meiyappan) 2004 Seminar Materials

12 Growth and Poverty: Lessons from the East Asian Miracle Revisited (M. Quibria) 2002 Research Paper

13 Global Prospects for Migration and Remittances in 2012: Implications for Asia (D. Ratha) 2012 Seminar Materials

14 ASEAN 2030: Toward a Borderless Economic Community (ADB and ADBI) 2012 Draft Highlights

15 Managing Capital Flows: The Search for a Framework (M. Kawai and M. Lamberte, eds.) 2010 Book

16 ADBI Three-Year Rolling Work Program, 2012–2014 and Budget for 2012 (ADBI) 2011 Key Documents

17 NGO Law and Governance (G. Stillman) 2007 Book

18Effective Development Aid: Selectivity, Proliferation and Fragmentation, and the Growth Impact of

Development Assistance (T. Kihara) 2012 Working Paper

19How the iPhone Widens the United States Trade Deficit with the People’s Republic of China

(Y. Xing and N. Detert) 2010 Working Paper

20Services as a New Engine of Growth for ASEAN, the People’s Republic of China, and India

(B. Shepherd and G. Pasadilla) 2012 Working Paper

21 The Five-Phases of Economic Development and Institutional Evolution in China and Japan (M. Aoki) 2011 Working Paper

22 Services Trade: Approaches for the 21st Century (ADBI and PECC) 2012 Book

23 Revisiting the Internationalization of the Yuan (Y. Yu) 2012 Working Paper

24 How to Draft Project Proposal (S. Ra) 2005 Seminar Materials

25 Developing Asia’s Pension Systems and Old-Age Income Support (D. Park and G. Estrada) 2012 Working Paper

26Estimating Demand for Infrastructure in Energy, Transport, Telecommunications, Water and Sanitation in

Asia and the Pacific: 2010-2020 (B. Bhattacharyay) 2010 Working Paper

27Fiscal Policy Issues for India after the Global Financial Crisis (2008–2010) (R. Kumar and A. SoumyaA.

Soumya)2010 Working Paper

28 Corporate Governance of Banks in Asia Volume 1 (S. Nam) 2006 Book

29 The Mekong Region: Foreign Direct Investment (J. Menon, S. Bhandari and P. Athukorala) 2006 Book

30 Europe’s Debt Crisis, Coordination Failure, and International Effects (S. Collignon) 2012 Working Paper

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