Asia and the IMF: A Closer Engagement

IMF Blog, July 9, 2010

Source details

Publication: July 9, 2010
Context: A high-level international conference in Daejeon, Korea, jointly hosted by the Korean government and the IMF; described as occurring "in just a few days’ time."
Central message: Strengthen strategic dialogue and partnership between the IMF and Asia as the region assumes a growing global economic role.
Projection: "In just two short decades, we expect it to become the largest economic region in the world."

The Global Economic Crisis: Asia’s Resilience, Lessons, and the Challenges Ahead
- Focus: Role of reforms and strong policy frameworks in ensuring Asia’s resilience; identifying new drivers of growth to sustain Asia’s performance and rebalance the global economy.
- Notable participants mentioned: Dominique Strauss-Kahn; Dong-Soo Chin; Y.V. Reddy.
Financial Sector Issues and Global Financial Safety Net
- Focus: Asian countries’ successes in reforming financial systems and the need to improve global financial safety nets, drawing on regional financial safety nets experience.
- Panelists mentioned: Changyong Rhee; Amando M. Tetangco Jr.
Transforming Asia’s Low Income Countries into Tomorrow’s Emerging Markets
- Focus: Examining Asia’s growth model and how low-income countries can improve growth prospects by learning from current emerging markets.
- Opening speaker mentioned: Min Zhu.
Growing Asian Integration and Global Governance
- Focus: Implications of Asia’s rapid transformation beyond the region; importance of improving Asia’s representation consistent with its growing economic power.
- Moderator mentioned: Yanqing Yang.
Asia and the IMF
- Focus: Direct dialogue on the IMF’s role and partnership with Asia.
- Panelists mentioned: Anoop Singh (participating), Professor Yung Chul Park, Professor David Li Daokui, Professor Eisuke Sakakibara.

Asia’s leadership of the global recovery is described as "undeniable."
Asia’s resilience attributed to "extensive reforms and improved macroeconomic policy frameworks."
Regional integration and cooperation in Asia are "growing rapidly" and are central to sustaining successes.
The IMF’s work in Asia is broadening to include:
- Multilateral and regional surveillance
- Cross-border linkages and spillovers
- Financial interconnectedness
- Analysis of vulnerabilities, such as the Early Warning Exercise
IMF engagement now complements technical assistance and program engagement with "greatly changed and expanded" access and flexibility.

Ensure Asia-Fund engagement is a two-way partnership:
- The Fund should listen to Asian public- and private-sector leaders, academics, and experts.
- The Fund should contribute a global perspective to Asian policymaking.
Build IMF presence and outreach in Asia:
- Continue building presence in the region.
- Reach out more broadly across stakeholders.
- Maintain active engagement to reflect Asia’s views and communicate the Fund’s evolving role.
Leverage Asia’s experiences to inform improvements in global financial safety nets and governance representation.

Source: IMF blog post "Asia and the IMF: A Closer Engagement", July 9, 2010.