Asia has emerged as an engine of growth in the world economy, accounting for over 30 percent of world GDP and contributing half of global growth in recent years.

Now, in order to further strengthen its role in the global economy, as well as to face its own challenges, Asia needs to make its financial markets more integrated internationally. Asia has successfully reduced vulnerabilities through the build-up of reserves. The next step should to develop more resilient national and regional financial markets. This would further reduce vulnerabilities by improving the channeling of savings and investment.

Financial integration was the topic of a high-level seminar in Singapore on September 3, jointly sponsored by the Monetary Authority of Singapore and the IMF, which brought together Asian leaders who are key to this process and provided an opportunity for the IMF to underscore its strong support for Asia's regional and global integration—including through increased Asian representation at the IMF.

The benefits from financial integration—for Asia and for the world—are clear. Regional and global financial integration will help deepen financial markets and strengthen the resilience of Asian economies to external shocks. It will also facilitate the better use of Asia's huge pool of savings, including for investment in the region.

Asian countries have already made significant progress on regional financial integration, although local financial market development has progressed much more rapidly than regional financial integration. At a national level, countries are working on developing their capital markets by fostering the issuance of investment-grade securities, strengthening corporate governance, and relaxing regulations that restrain the role of institutional investors. At the regional level, initiatives are underway to strengthen financial ties: the ASEAN+3 roadmap for spurring the development of a regional bond market, and the Chiang Mai network of bilateral swap arrangements. The IMF fully supports these efforts and is prepared to assist in any way it can.

Greater regional integration should not—and need not—come at the expense of Asia's increased engagement with the rest of the world. As the international community approaches a critical stage in the Doha Round of trade negotiations in December at the WTO meeting in Hong Kong, Asia has the opportunity to assume a leadership role. A successful conclusion to the Doha Round—with its implications for further opening global markets and strengthening the multilateral trading system—will bring huge benefits to all developing economies. Such leadership would deepen Asia's influence in the global economy.

At the same time, Asia's representation in global institutions like the Fund falls short of the region's weight in the global economy. The reality of Asia's role in the world economy should be reflected in its voice and representation in international institutions like the IMF. Our review of the Fund's medium-term strategy, which was published this month, offers an excellent chance for progress on this issue.

The international community must recognize that this is not a zero-sum game. A greater Asian role in the IMF will not only benefit Asia. It will also strengthen global financial cooperation. With political will, it should be possible to find a solution.