Asian Responses to the Global Financial Crisis

Asian Responses to the Global Financial Crisis

The Impact of Regionalism and the Role of the G20

Edited by Jehoon Park, T. J. Pempel and Geng Xiao

The expert contributors – both Asian and Western – illustrate that as G20 members, many Asian countries are now able to showcase their increasing powers and influence on global issues. Within this context, and via multidisciplinary economic and political science perspectives, the book deals with various issues such as World System analysis, the debate between the Washington Consensus and the Beijing Consensus, roles within the G20, and the contribution of ‘middle’ powers such as Korea and Australia. The application of European experiences to Asia is also considered, as are perspectives from the US. The book concludes that the key to resolving the current global economic crisis lies in how quickly a new global governance and monitoring system can be constructed, and that there are multiple roles for Asian countries to play in its development.

Chapter 10: The ASEAN Economic Community and East Asian Economic Integration

Taeyoon Kim

Subjects: asian studies, asian economics, economics and finance, asian economics, politics and public policy, international politics, international relations, urban and regional studies, regional studies


Taeyoon Kim 10.1 INTRODUCTION Current economic conditions of East Asia countries have been more rapidly improved from a dramatic plunge caused by the global financial crisis of 2008 than other developed countries. Reasons for fast economic recovery in East Asia countries include government stimulus packages, recovering domestic demand and a revival in external demand, which have improved business expectations and consumer confidence in their economies (ADB, 2010). For instance, gross domestic product (GDP) growth rates for ASEAN-5 (see below), China, Korea and the world in 2010 are 6.92 percent, 10.33 percent, 6.16 percent and 5.11 percent, respectively, compared to 1.71 percent, 9.22 percent, 0.32 percent and −0.66 percent in 2009, respectively (see Table 10.1). This shows that most East Asian countries, on average, have coped with the global financial crisis relatively well compared to the rest of the world, and these trends are continuing for the time being according to the GDP growth rate in 2010. Also, the number of free trade agreements (FTAs) in Table 10.1 GDP growth rate in East Asian countries and world (% change) Singapore 8.78 1.49 −0.77 14.47 China 14.20 9.60 9.22 10.33 Japan 2.36 −1.17 −6.28 3.96 Korea 5.11 2.30 0.32 6.16 World 5.44 2.79 −0.66 5.11 Year 2007 2008 2009 2010 ASEAN-5 6.31 4.81 1.71 6.92 Note: ASEAN-5 includes Indonesia, Malaysia, the Philippines, Thailand and Vietnam. Source: World Economic Outlook Database, September 2011, IMF. 135 M2931 - PARK TEXT.indd 135 03/07/2012 10:39 136 Asian responses to the global financial crisis effect is...

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