ASIAN DEVELOPMENT BANK INSTITUTE

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URL: www.adbi.org
Email: info@adbi.org

© 2010 Asian Development Bank Institute

 Table of Contents

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

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

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

Infrastructure for a Seamless Asia ....................................................................................................... 5

Working with ADB Headquarters and Other Knowledge Partners .................................................. 8

Research Highlights ........................................................................................................................... 12

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

Outreach Highlights ........................................................................................................................... 32

Appendix 1: Organization Chart ...................................................................................................... 36

Appendix 2: Deans and Advisory Council Members ..................................................................... 37

Appendix 3: Brown Bag Lunches ...................................................................................................... 38

Appendix 4: CBT Events ..................................................................................................................... 39

Appendix 5: Selected ADBI Publications ......................................................................................... 41

Appendix 6: Top 30 Downloads of 2009 .......................................................................................... 48

 List of Abbreviations
ADB Asian Development Bank

ADBI Asian Development Bank Institute

APEC Asia-Pacific Economic Cooperation

ASEAN Association of Southeast Asian Nations

CBT capacity building and training

DAJA Developing Asia Journalism Awards

DMC developing member country

EIC eco-industrial cluster

ERD Economics and Research Department

EU European Union

FTA free trade agreement

G20 Group of Twenty

GDP gross domestic product

GFC global financial crisis

IEI international economic institution

IMF International Monetary Fund

IWRM Integrated Water and Resources Management

MDG Millennium Development Goal

MFTOT Microfinance Training of Trainers

MP3IC Multilateral PPP for Infrastructure Capacity Building

NEAR North East Asia Research Foundation

OECD Organisation for Economic Co-operation and Development

OREI Office of Regional Economic Integration

PPP public-private partnership

PRC People’s Republic of China

ROO rules of origin

RSDD Regional and Sustainable Development Department

SAARC South Asian Association for Regional Cooperation

SAFTA South Asian Free Trade Area

SME small- and medium-sized enterprise

SPS sanitary and phytosanitary

WTO World Trade Organization

US United States

“$” = US dollar
 Dean’s Message
W
orld markets experienced great turbulence
in 2009 as a result of the global financial
crisis (GFC); many Asian economies were
affected to varying degrees. Early in the year, the Asian
Development Bank Institute (ADBI) responded quickly
by adjusting its work program to include an extensive
project on the crisis. Over the year, we conducted
more than twenty conferences, workshops, and
seminars with experts from Asian think tanks, regional
policymaking agencies, the Asian Development Bank
(ADB) headquarters, other international organizations,
and prominent academics, researchers, and experts.
These events analyzed the impacts of the crisis on
the region, examined its medium-term implications
for Asian economies, and made policy measure
recommendations for the ways to address the crisis in
the short-term and to set the stage for a normalization
of financial market conditions and balanced, broad-
based, and sustainable economic growth. Results of the
project will be published in a series of books, the first
of which will be Rebalancing for Sustainable Growth:
Asia’s Postcrisis Challenge.
In addition to this major project that cut across
our work program themes, ADBI continued other
activities under its three established priority themes
of (i) inclusive and sustainable growth, (ii) regional
cooperation and integration, and (iii) governance for
policies and institutions.
The flagship research project on infrastructure
and regional cooperation, which culminated in
the publication of Infrastructure for a Seamless
Asia, examined key issues and challenges facing
infrastructure development in Asia and the Pacific
region in its continuing efforts to support regional
cooperation. This project is a fine example of close
collaboration between ADBI and ADB headquarters.
I am encouraged that in the past year, ADBI actively
pursued oppor tunities for better coordinated
knowledge management and dissemination with ADB
headquarters in an effort to enhance our synergy
with the three other knowledge departments of ADB:
Economics and Research Department (ERD), Office
of Regional Economic Integration (OREI), and
2
Regional and Sustainable Development Department
(RSDD). Examples of such collaboration are the joint
project on Asia’s Free Trade Agreements and the
high-level conference on The Impact of the Global
Economic Slowdown on Poverty and Sustainable
Development. The former collaboration is expected to
lead to the ADB-ADBI joint publication of Asia’s Free
Trade Agreements: How is Business Responding?;
the latter resulted in the joint publication, Poverty
and Sustainable Development in Asia: Impacts and
Responses to the Global Economic Crisis.
We conducted many workshops for senior-level officials
from ADB developing member countries (DMCs) to
enhance their understanding of important development
issues, to identify appropriate policies or measures to
address these issues, and to assist them in implementing
them effectively. In response to the GFC, additional
focus on this issue was incorporated into some capacity
building and training (CBT) activities.
ADBI has begun to vigorously seek the financial
support of ADB member countries in addition to
the existing support provided by the Government of
Japan. Such support can be made by making voluntary
contributions to ADBI’s special fund, setting up a trust
fund with ADBI, or co-sponsoring ADBI programs.
I maintain our full commitment to the quality of
our activities by pursuing excellence, originality, and
professionalism. This publication chronicles ADBI’s
activities in 2009 to give a better understanding of
our work in response to the global crisis and, more
generally, how our work can influence policymakers for
a better Asia and Pacific region.
Masahiro Kawai, Dean
Asian Development Bank Institute
 Advisory Council

T
he functions of the Advisory Council are set
out in Article IV of the ADBI Statute. The
Council has seven members, one of whom is
a senior official from ADB headquarters. The other
members of the Advisory Council are distinguished
practitioners or scholars in the field of development
or management selected from among ADB’s member
countries on a broad geographical basis. Members are
appointed for two years and may be reappointed. They
meet twice a year, once on the premises of ADBI and
once at ADB headquarters.
In accordance with Article IV of the ADBI Statute, the
Advisory Council provides advice and recommendations
on the strategic directions of ADBI and reviews
and comments on 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.

Name Country
Masahiko Aoki
Japan
President, International Economic Association
K.M. Chandrasekhar
India
Cabinet Secretary, Government of India
Gang Fan
People’s Republic of China
Director, National Economic Research Institute
Victor H. Frank, Jr.
United States
President, Asian Programs Foundation
Eric Girardin
France
Professor of Economics, Université de la Méditerranée, Aix-Marseille
Andrew MacIntyre
Australia
Director, Crawford School of Economics and Government, Australian National University
Jong-Wha Lee
ADB
Officer-in-Charge, Office of the Chief Economist

Other Advisory Council Members:

K. M. Chandrasekhar and Gang Fan

ADB President Haruhiko Kuroda and ADBI Dean Masahiro Kawai pictured
with AC 2008–2010 members. Standing (from left): Andrew MacIntyre, Eric
Girardin, Masahiro Kawai, and Jong-Wha Lee. Seated (from left): Masahiko
Aoki, Haruhiko Kuroda, and Victor H. Frank, Jr.

ADBI extends condolences to the family, friends, and colleagues of Victor H.

Frank, Jr., who passed away on 6 April 2010. Mr. Frank was a valued, long-
time member of our Advisory Council.
3
 Vision and Overview
A
DBI is increasingly recognized as a leader in
creating and sharing knowledge on economic
development in the Asia and Pacific region.
ADBI conducts research and capacity building and
training activities that contribute to ADB’s objective
of poverty reduction. Its work focuses on the region’s
medium- to long-term development issues of strategic
importance and targets senior level policymakers.
The objectives of ADBI, as set forth in its Statute,
are to identify effective development strategies and to
improve the capacity for sound development of the
agencies and organizations in the DMCs.
ADBI strives to be a laboratory for new ideas and to
shape the debate on key emerging issues. It does this
by responding to important challenges affecting many
stakeholders in the region in a timely, operationally-
relevant, and policy-oriented fashion.
ADBI emphasizes the quality, rather than the quantity,
of its research and CBT programs by pursuing
4
excellence and originality in areas where it has a
strategic advantage. In order to further strengthen its
reputation as a trusted knowledge institution, ADBI
continues to enhance its refereeing processes and post-
project evaluation.
ADBI increases the impact of its activities by working
closely with leading policy-oriented think-tanks
to develop sound and practical recommendations
regarding policy reforms.
In 2009, ADBI adopted a work program with three
strategic priority themes:
t Inclusive and environmentally sustainable growth
t Regional cooperation and integration
t Governance for policies and institutions
These priority themes form the basis for all ADBI
activities. Private sector issues, as drivers of economic
development, cut across all the strategic themes.
ADBI’s financial statements can be found in the
ADB Annual Report 2009, Vol. 2.
 Infrastructure for a Seamless Asia
U
nder ADB and ADBI’s joint flagship study
on infrastructure and regional cooperation,
a p re p u b l i c a t i o n ve r s i o n o f t h e b o o k
Infrastructure for a Seamless Asia was launched at
ADB’s 42nd Annual Meeting in May 2009; the final
version was released in September. This pioneering
book is the first time a study on regional infrastructure
such as this one has been undertaken. The book has
been a great success since its launch, with over 50,000
downloads in the first month after its publication on
ADBI’s website in September. The flagship study serves
as a definitive knowledge product for stakeholders in
the region and beyond, having received global attention
from senior policymakers and business circles as well as
media across Asia. A volume of the background papers
conducted for the flagship study is currently in progress
and further follow-up studies are being undertaken by
ADB, the Economic Research Institute for ASEAN
and East Asia (ERIA), and the Japan International
Cooperation Agency (JICA). The book has been
translated into Chinese and Japanese.
ADBI Dean Masahiro Kawai; Sri Mulyani Indrawati, Minister of Finance for Indonesia and 2009 Chair of ADB’s Board of
Governors; ADB President Haruhiko Kuroda; and Rajat Nag, ADB Managing Director General, launch the book Infrastructure
for a Seamless Asia at ADB’s Annual Meeting in Bali, Indonesia.
In view of Asia’s enormous, untapped economic
potential and the ongoing global economic and
financial crisis, Asia needs to build efficient,
environment-friendly connections and networks
across Asia and to the rest of the world to create a
more competitive, prosperous, and integrated region.
The “seamless” concept is relevant to Asia today as
substantial efforts are being made to enhance regional
economic integration and the creation of an Asian
common market. The development of a pan-Asia
network of infrastructure is essential to effectively
realize these key drivers of the region’s future growth
potential.
Increasing infrastructure investment is essential for
several reasons. First, efficient infrastructure enhances
competitiveness and productivity, helps increase
standards of living and reduce poverty by connecting
isolated places and people with major economic
centers, and promotes environmental sustainability.
It also forms an important part of fiscal stimulus
packages, especially in the case of prolonged crises,
5
 Year in Review 2009
facilitating and driving economic recovery and helping
to sustain medium- to long-term growth. Additionally,
national and regional infrastructure investment helps to
rebalance Asia’s growth by increasing regional demand
and intraregional trade.
The study analyzed the major challenges in developing
r e g i o n a l i n f r a s t r u c t u r e — b o t h h a rd a n d s o f t
infrastructure—through fostering regional cooperation
toward a seamless Asia. The study covered ADB’s 44
DMCs across the Asia and Pacific regions as well as
Japan and Brunei Darussalam. It evaluated existing
regional infrastructure programs, policies, and
institutions, making recommendations on what the
region can do to meet these challenges and providing a
framework for pan-Asian infrastructure cooperation. It
discussed aspects of both hard and soft infrastructure—
respectively, the long-term physical structures,
equipment, and facilities (along with the economic
services they provide) and the policy, regulatory,
trade facilitation, and institutional frameworks that
support the development and operation of physical
infrastructure.
6
The study found that Asia needs to invest approximately
$8.3 trillion in infrastructure (both national and
regional) during 2010–2020. It covered four areas of
infrastructure including energy, telecommunications,
transport, and water and sanitation, for investments in
both new capacity and replacements. According to the
study, infrastructure investment in energy, especially
electric power, at $4 trillion would account for almost
half the total needed investment. In the 11-year
period reviewed, investment in telecommunications,
transport, and water and sanitation needed to meet
demand would equal $1 trillion, $2.5 trillion, and
$380 billion, respectively. These investments would be
expected to produce substantial real income gains of
about $13 trillion total for developing Asia during this
period and after. For example, the People’s Republic of
China (PRC) could see gains of $3.5 trillion and India
of $3 trillion following the necessary investments,
representing remarkable increases in real income.
The investments would also have positive effects on
real incomes in Indonesia, Thailand, Malaysia, and
Viet Nam to the tune of $1.3 trillion, $1.2 trillion,
$830 billion, and $400 billion, respectively.
One of the major challenges to creating an Asia with
fewer barriers to the free movement of goods, services,
and people is in finding ways to finance such massive
infrastructure investment. In this regard, the study
emphasized that governments in Asia must bolster their
collective efforts to mobilize the large pool of regional
savings for viable regional infrastructure. It looks to
strengthening national and regional bond markets,
particularly local currency bond markets through the
Asian Bond Market Initiative and the Asian Bond
Funds, as a necessary step in creating a viable source
of regional investment and tapping the region’s vast
savings. Additionally, it detailed the need to identify
and prepare “bankable” projects to encourage private
financing and have an effective financing framework
that can help mobilize the region’s vast savings and
encourage public-private partnerships.
The study noted that it is important to have a top-
down, market-expanding, and demand-inducing
approach for Asian connectivity to complement the
bottom-up, market-driven approach that Asia has

largely followed to date. It presented a framework
for pan-Asian infrastructure cooperation toward the
creation of a seamless Asia. This requires a common
vision, strong leadership, and shared commitment
by Asian leaders; strong institutional capacities at the
national level; coherent infrastructure development
at national, subregional, and regional levels; and pan-
Asian infrastructure strategies to prioritize investments
and coordinate policies. Effective planning and
implementation of projects to ensure “win-win”
outcomes among participating countries can be done
by addressing the issue of asymmetric distribution
of projects’ costs and benefits, and managing
socioeconomic and environmental impacts.
Infrastructure for a Seamless Asia
In view of Asia’s varied needs, circumstances, and
political commitment to closer integration, subregional
infrastructure programs have been proceeding
at different speeds and on different tracks. Asia
should create pan-Asian infrastructure networks by
strengthening and integrating existing subregional
programs. The book proposes establishing a pan-Asian
infrastructure forum to help coordinate and integrate
existing subregional infrastructure initiatives and an
Asian infrastructure fund to mobilize international
funds (public and private) and help prioritize, prepare,
and finance bankable regional projects. The key
message of the book is that now is the time to forge
ahead with the goal of integrating this vast and diverse
region—for the benefit of all its citizens and for a
lasting and shared prosperity—by building pan-Asian
infrastructure connectivity.
7
Working with ADB Headquarters and
Other Knowledge Partners
With ADB Headquarters
ADBI activities continued to build on
research and capacity building findings
and knowledge products from relevant
projects conducted by ADB headquarters
(and vice versa). Dissemination and
discussion of these products at ADBI
events, which are regional in nature,
helped to expand their outreach and
impact.
For 2009, ADBI collaborated with
various departments and offices of ADB
headquarters such as ERD, OREI,
R S D D , Pr i v a t e Se c t o r O p e r a t i o n
D e p a r t m e n t , St r a t e g y a n d Po l i c y
Department, Central and West Asia
Department, South Asia Department,
and Southeast Asia Department.
Internal Collaboration
Internally, ADBI’s Research and CBT
departments collaborated and shared
resources in undertaking and organizing
their activities. Research fellows
participated in selected CBT activities as
resource speakers and as discussants to
share relevant findings and outcomes of
their research activities. These activities
provided opportunities for research
staff to gain knowledge from CBT
participants about emerging development
issues in the region. Some of the joint
activities organized by the Research and
CBT departments in 2009 included the
Roundtable on Capital Market Reform
in Asia, Developing Asia Journalism
Awards (DAJA) and Training, and
the Conference on Global Financial
Crisis: Financial Sector Reform and
Regulation.
 Working with ADB Headquarters and Other Knowledge Partners
The Eco-Industrial Clusters: Policies and Challenges training program was organized in collaboration with ADB headquarters
and other partners.
Networking
In 2009, ADBI continued efforts to strengthen external
knowledge partnerships and to disseminate knowledge.
Under the ADBI Visiting Researcher Program, 11
researchers 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 as to 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.
Working with Other Partners
In 2009, ADBI collaborated with global and regional
organizations, government and public agencies, and
think tanks, universities, and other knowledge partners.
Working with other partners broadens ADBI’s knowledge
of development issues, raises the quality of research and
CBT activities, widens its outreach, and enhances the
impact of its activities. Examples of activities that ADBI
conducted with external partners are:
Research Department
t ADBI partnered with Brookings Institution,
Cornell University, and the Institute for Financial
Management and Research Trust to organize
a conference on Financial Sector Regulation
and Reform in Emerging Markets. Participants
examined a range of issues including basic
principles of financial regulation and the challenges
9
 Year in Review 2009

of limited institutional development and regulatory

capacity.
t The Accelerating Regional Integration in the
Asia-Pacific Region was a joint effort by ADBI,
the Inter-American Development Bank, and the
Institute of Southeast Asian Studies. The conference
explored modalities for accelerating regional
integration and addressing difficulties such as
limited market access and high transportation costs
in the Asia and Pacific region.
t ADBI and the North East Asia Research (NEAR)
Foundation organized a conference on the Global
Financial Crisis and Regional Financial Architecture:
The Future of the Dollar and the Choice of Asia, in
which participants discussed the changing international
financial architecture in the postcrisis era.
t ADBI, the East-West Center, the Asia-Pacific Center
at Brandeis Univeristy, and Nihon University
cooperated to organize the The People’s Republic
of China, Japan, and the United States: Deeper
Integration Workshop. Participants discussed the
nature of existing structural links among the three
countries and explored measures for improving the
policy framework that supports their deepening
economic integration.

CBT Department
t The 2009 Developing Asia Journalism Awards
(DAJA) event was organized in collaboration
with InWEnt Capacity Building International.
The awards ceremony was preceded by a four-
day training workshop in which DAJA finalists
exchanged views with experts on the poverty impact
of the GFC, government responses to the GFC,
infrastructure development, and climate change
adaptation.
t ADBI jointly organized the third ASEAN Experts
Group on Competition training workshop on
Costs and Benefits of Competition Policy, Law,
and Regulatory Bodies with the US Federal
Trade Commission and the ASEAN Secretariat.
The workshop introduced and shared country
experiences on assessment of costs and benefits of
competition policy and law, design of an effective
competition law, and efficiency of competition
regulatory bodies.
t The Organisation for Economic Co-operation
(OECD) and ADBI’s 10th Roundtable on Capital
Market Reform brought together more than 100
policymakers and experts from Asia, the Americas,
and Europe to discuss the causes of the GFC and
its impact on and implications for capital market
development in Asia.
t The Workshop on Promoting Financial Inclusion
through Innovative Policies was organized in
collaboration with the Asia-Pacific Economic
Cooperation (APEC) Business Advisory Council
and Alliance for Financial Inclusion. The workshop
provided a peer-to-peer learning and knowledge-
sharing platform for policymakers to enhance their
capacity to develop an innovative and enabling
policy environment for financial inclusion in agent
banking, mobile phone banking, diversifying
providers, reforming public banks, financial identity
regulation, and consumer protection.

10
 Working with ADB Headquarters and Other Knowledge Partners

ADBI’s Partners

Global Organizations: Alliance for Financial Inclusion (AFI); Bank for International Settlements (BIS); Food and
Agriculture Organization of the United Nations (FAO); International Bureau of Fiscal Documentation (IBFD);
International Labor Organization (ILO); International Monetary Fund (IMF); International Organization for Migration
(IOM); Organisation for Economic Co-operation and Development (OECD); Public-Private Infrastructure Advisory Facility
(PPIAF); United Nations Capital Development Fund (UNCDF); United Nations Conference on Trade and Development
(UNCTAD); United Nations Development Programme (UNDP); United Nations Economic Commission of Europe (UNECE);
United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP); World Bank, including its Institute,
International Finance Corporation (IFC), and Multilateral Investment Guarantee Agency (MIGA); World Customs
Organization (WCO); World Health Organization (WHO).

Regional Organizations: Asia Europe Economic Forum; Asia Europe Foundation (ASEF);
Asia-Pacific Economic Cooperation (APEC); APEC Business Advisory Council (ABAC); Association of Southeast Asian
Nations (ASEAN); Asian Productivity Organization; Central Asia Regional Economic Cooperation (CAREC); Economic
Research Institute for ASEAN and East Asia (ERIA); Colombo Plan Staff College for Technician Education (CPSC);
European Central Bank (ECB); European Investment Bank (EIB); Inter-American Development Bank (IADB); Latin
America/Caribbean and Asia Pacific Economics and Business Association (LAEBA); Network of Asian River Basin
Organizations (NARBO); South Asian Association for Regional Cooperation (SAARC).

National, Government, and Public Agencies: Australian Agency for International Development (AusAID); Bank of Italy;
China Banking Regulatory Commission (PRC); Japan Centre for Economic Research (JCER); Japan Fair Trade Commission
(JFTC); Financial Services Agency (Japan); Ministry of Agriculture and Cooperatives (Thailand); Ministry of Agriculture,
Forestry and Fisheries; Ministry of Foreign Affairs; Ministry of Finance; Ministry of the Economy, Trade and Industry;
National Tax Agency; United Kingdom Foreign and Colonial Office-Mumbai; US Agency for International Development
(USAID); US Department of Justice; US Federal Trade Commission (FTC).

Think Tanks, Universities, and Other Knowledge Institutions: Asian Institute of Technology (AIT); Asia-Pacific Finance
Development Center (Beijing); Alliance for Financial Inclusion; Bank of Communications, New Finance Editorial
Department (Shanghai); Bond University; Brookings Institution; Bruegel (Brussels); Centre d’Etudes Prospectives
et d’Informations Internationales; Centre on Trade and Economic Integration (CTEI) of the Geneva-based Graduate
Institute of International and Development Studies (HEID); Chulalongkorn University; City University of Hong Kong;
Claremont McKenna College; Columbia University; Consultative Group to Assist the Poor, European Commission;
Cornell University; East-West Center; Dankook University (Korea); Earth Institute, Columbia University; European
Institute for Asian Studies; Hertie School of Governance (Berlin); Hitotsubashi University; Indian Council for Research
on International Economic Relations (ICRIER); Institute for Financial Management and Research Trust (India); Institute
for Global Environmental Strategies (IGES); Institute of Southeast Asian Studies (ISEAS); Institute for World Economics
and Politics, Chinese Academy of Social Sciences (CASS); Keio University; International Development Research Centre
(IDRC/CRDI); Japan Water Agency (JWA); Jasa Tirta I Public Corporation; InWEnt; Kiel Institute for World Economics;
Korea Institute for International Economic Policy (KIEP); Korea University; Monash University; Nanyang Technological
University; National Cheng Kung University; National University of Singapore; North East Asia Research (NEAR)
Foundation; Policy Research Institute (PRI); RMIT University; Research and Information System for Developing
Countries (RIS); Tax Academy (Malaysia); Tokyo Development Learning Center (TDLC); United Nations University (UNU);
Universidad del Pacifico (Peru); Vienna Institute of International Economic Studies (VIIES).

11
Research Highlights

I
n view of ADB’s long-term strategic Research Activities, 2009
framework 2008–2020 (Strategy
Activity Number
2020), under the vision of an Asia
and Pacific free of poverty, ADBI has Conduct of Research
refocused its priority themes to align Projects (each project 20
consisting of several studies)
to these strategies. This strategy is
Individual Studies 25
complemented by three agenda items:
inclusive and environmentally sustainable Publications
g row t h , re g i o n a l c o o p e r a t i o n a n d Books 2
Research policy briefs 3
integration, and governance for effective
Working papers 53
policies and institutions. Special publication 1

The research activities implemented in Distinguished Speaker Seminars 9

2009 in support of the main thrust of Major Conferences 28
ADB were initiated before and during
Project Workshops/Seminars 5
the year. These research initiatives were
conducted by ADBI research staff, Brown Bag Lunch Seminars 14
visiting fellows and researchers, and
consultants.
 Research Highlights

Projects with Cross-Cutting pan-Asian infrastructure forum to coordinate existing

Themes
Flagship Project
The flagship project was completed in 2009 and, in
partnership with ADB, the prepublication version of
Infrastructure for a Seamless Asia was launched at
ADB’s 42nd Annual Meeting in May; the final version
was released in September. The study outlined key
policies and best practices the region should follow to
guide policymakers involved in developing regional
infrastructure. It recommended the establishment of a
subregional infrastructure initiatives. It projected an
annual infrastructure investment in the region of $750
billion during 2010–2020, and proposed an Asian
infrastructure fund to mobilize Asian and international
funds.
Global Financial Crisis Project
In response to the evolving GFC, ADBI conducted
research to evaluate the major aspects of the impacts of
the crisis on Asia and organized 22 events under this
project. The five major themes covered (discussed in

Key Recommendations from the Global Financial Crisis Project

Some major recommendations that resulted from the project are:
t implement a regime for monetary policy that takes account of asset price movements to avoid creating
bubbles;
t implement a system for macro-prudential surveillance and regulation of the financial sector;
t take steps to further deepen regional bond markets, including promotion of rating agencies, liberalization of
issuing requirements, and harmonization of regulations and tax regimes;
t work toward achievement of regional agreements to liberalize trade and investment, including services trade;
t promote the strengthening of social safety nets and national pension systems to reduce the need for
precautionary saving and to encourage consumption;
t promote environmentally sustainable growth by formulating effective renewable energy policies and resource
efficiency strategies, and taking steps to cut trade barriers for green technology transfer; and
t promote the development of an Asian infrastructure investment fund to support infrastructure investment
in the region.

13
 Year in Review 2009
greater detail in a subsequent section) in the project
are: (i) macroeconomic impacts and policy responses;
(ii) real economy (sector) impacts; (iii) financial sector
reform and regulation; (iv) social and environmental
impacts; and (v) regional cooperation and architecture.
The research results in general indicated a need for
Asia to rebalance growth between production and
spending (current account rebalancing); growth and
environmental and climate change challenges (green
growth); and growth and social inclusion (inclusive
growth).
In 2009, twenty-eight working papers were published
under this project. A book based on the various
research papers produced under this project focusing
on Asia’s postcrisis agenda for reform is expected to be
launched in 2010.
Inclusive and Sustainable Growth
Nine working papers have been published under this
theme; three of these are highlighted below.
14
Patterns of Inclusive Growth in Developing Asia:
Insights from an Enhanced Growth-Poverty Elasticity
Analysis attempted to identify key factors that explain
the observed wide variation in patterns of inclusiveness
of economic growth in Asia. Results affirmed the
significant impact of the level of quality of governance,
public expenditures on social services, and contribution
of agriculture to gross domestic product (GDP)
growth, in that order of importance.
Agricultural Impact of Climate Change: A General
Equilibrium Analysis with Special Reference to
Southeast Asia utilized recent worldwide estimates
of the impacts of climate change on agricultural
production to assess the economic effects of climate
change for Southeast Asian countries through 2080.
The paper revealed that in the coming decades,
most Southeast Asian economies will suffer more
welfare losses through deteriorated terms of trade and
advocated that the region concentrate on reversing its
current trend of declining agricultural productivity.

Strategic Choice of Freight Mode and Investments in
Transport Infrastructure within Production Networks
showed that the strategic choice of using an alternative
transport mode does not necessarily induce lower
access charges relative to the standard transport mode.
It implied that interactions among infrastructure,
investments, building transportation capacity costs,
and industry-specific characteristics should be carefully
assessed when planning transport infrastructure,
investments to enhance competitiveness in export
markets.
Other papers dealt with a variety of policy issues
such as demographic changes and pension reform,
food safety and information and communications
technology traceability systems, market-based strategy
and biodiversity and environmental management,
strategic choice of freight mode and investments
in transport infrastructure, and stress and risk in
public-private partnerships (PPPs) in infrastructure
investment.
Research Highlights
Regional Cooperation and
Integration
Fifteen working papers were published under this
theme; four papers are highlighted below.
Reform of the International Financial Architecture: An
Asian Perspective evaluated whether the international
financial architecture is adequate for maintaining
the financial stability of East Asian economies. The
paper revealed that despite prior reforms, the existing
international financial architecture remains inadequate
for the needs of many emerging market economies. It
recommended that East Asian authorities focus on the
establishment of resilient national financial systems,
integration of national financial markets, enhancement
of regional liquidity and surveillance mechanisms, and
regional exchange rate policy coordination.
Asian FTAs: Trends and Challenges provided new
evidence from firm surveys, analysis of specific
agreements, and computable general equilibrium
estimates to examine key trends and challenges of Asian
free trade agreements (FTAs). It argued for strengthening
the support system for using FTAs, rationalization
of rules of origin (ROO), ensuring better coverage of
agricultural trade issues, forging comprehensive “WTO-
plus” agreements, and establishment of a region-wide
FTA.
Impacts of Free Trade Agreement on Business Activity
in Asia: The Case of Japan investigated how East Asian
FTAs have affected the behavior of Japanese firms,
including their affiliates operating overseas. The results
revealed that presently, FTAs are neither well known
nor well utilized by Japanese firms. There are several
reasons for the low utilization; one of which is the
cumbersome documentation requirements that hinder
small- and medium-sized enterprises from utilizing
FTAs.
Assessing Foreign Direct Investment Relationships
Between Japan, the People’s Republic of China (PRC),
and the United States (US) examined in detail the huge
investment flows in the PRC, particularly those from
the US and Japan, to gain perspective on the relative
15
 Year in Review 2009
importance of the inflows for the three countries.
The results revealed a much higher degree of export-
orientation for Japanese affiliates than for American
affiliates; but, over time, there appeared to be a
tendency toward convergence in the sales destinations
of Japanese and American affiliates.
Other papers under this theme dealt with a range
of issues such as improving connectivity within Asia
through investment in physical and soft infrastructure,
options for narrowing the development gap in Asia,
impacts of multiple overlapping FTAs on business
activity in Asia, trade facilitation, PRC-US-Japan trade
relations, and the impacts of exchange rate changes in
countries supplying parts and components and in East
Asian assembly economies.
Distinguished Speaker Seminars
This program is comprised of a series of seminars that
aim to bring eminent persons to ADBI in order to
encourage debate among policymakers, researchers,
academics, think tanks, and other audiences interested
in economic development challenges in the Asia and
Pacific region. In 2009, eight internationally known
economists and one political scientist delivered
seminars on various policy and development issues. A
brief description of each seminar is given below.
The Challenge of Climate Change: What are
the Priority Actions for Policymakers in Asia?
What is the Asian Development Bank Doing?
Bindu N. Lohani, ADB’s
Vice President for Finance
and Administration,
highlighted two points
i n h i s l e c t u r e : A D B ’s
commitment to clean energy
and environment, and policy
recommendations to address
climate change. He then
concluded by highlighting
the potential of technological innovations to make
clean energy affordable and efficient and promoted the
exploration of technology in efforts to address climate
change. Mr. Lohani identified three major engineering
16
challenges to achieve this end: the capture of solar
power, development of fusion power, and carbon
capture and sequestration.
The Current Worldwide Financial and
Economic Crisis
Michael D. Intriligator,
Professor of Economics,
Political Science, and Public
Policy at the University of
California at Los Angeles and
a Senior Fellow at the Milken
Institute, shared his views on
the GFC as it was unfolding.
For Mr. Intriligator, two
notable factors paved the
way for the crisis: (i) the repeal of the US’ Glass-Steagall
Act in 1999 that allowed financial institutions to engage
in commercial and investment banking, and insurance
products; and (ii) the US Federal Reserve Board’s low
interest rate policy under Chairman Alan Greenspan. To
hasten economic recovery, Mr. Intriligator recommended,
among other things, greater banking transparency and
leverage caps for financial institutions, closer supervision
by the Federal Reserve, and international cooperation to
rethink international finance.
Governing the Global Economy: Problems
and Solutions
Pe t e r A . Pe t r i , C a r l J .
Shapiro Professor at
Brandeis University and
Senior Fellow at the East-
West Center, discussed the
re f o r m o f i n t e r n a t i o n a l
economic institutions (IEIs)
and explored their built-in
structural limitations using
“club theory.” For Mr. Petri,
the “governance trilemma”—the difficulty of achieving
universal, democratic, and decisive institutions—
summarized the fate of IEIs. He used the “club theory”
framework in his analysis, which offered two solutions
toward more flexible and responsive institutions: (i)
Tiebout or “voting with your feet” solution; and (ii)
decentralized decisions. The first solution would create

competing clubs to give countries more choices in
addressing their needs. The second solution would
allow subgroups within an institution to craft policies
that not all members subscribe to.
Short-Term Anti-Crisis Policy and Long-Term
Growth of the PRC
Fan Gang, Director of the
National Economic Research
Institute and Chairman
of the China Reform
Foundation, addressed key
questions surrounding the
current recession in the
PRC. Mr. Fan shared his
optimism on the PRC’s long-
term growth. He revealed
that a growth-accounting study showed total factor
productivity and input growth to be behind high GDP
growth rates. To hasten economic recovery from the
crisis, he identified two structural impediments that
must be resolved: the PRC’s high savings rate and low
consumption rate. To promote household spending,
the minimum wage and social welfare spending should
be increased and income tax rates should be reduced.
Mr. Fan concluded that current expansionary policies
should be continued at least until 2010 in order to
sustain growth.
Determinants of US Exports to the PRC
Barr y Bosworth, Senior
Fellow and Robert V. Roosa
Chair in International
Economics at Brookings
Institution, shared his
findings on the determinants
of US exports to the PRC.
He pointed out that the
share in GDP of US imports
from the PRC is comparable
to those of Japan and the European Union-15; but
only Japan has mirrored the rising trend in its exports
to the PRC since the mid-1980s. Of the three probable
factors for the poor export showing of the US to the
PRC—i.e., the composition of US exports, the role
of American multinational corporations, and long
Research Highlights
distance between the US and the PRC—only distance
was found to play a significant role. Mr. Bosworth
argued that the US’ poor export performance to the
PRC is not particular to the PRC as the US has trade
deficits with almost all the countries in the world and
uncompetitive real exchange rates may have something
to do with this.
Market-Driven Integration in East Asia
Eisuke Sakakibara,
P r o f e s s o r a t Wa s e d a
Un i v e r s i t y a n d f o r m e r
Japanese Vice Minister of
Finance, delivered a lecture
on East Asian integration
and examined how it fared
with that of the European
Union (EU). He pointed out
that, unlike the institution-
driven integration of the EU, markets have played a
pivotal role in creating Asian integration. It may have
been the fortuitous effect of the 1985 Plaza Accord,
which doubled the Japanese yen’s value vis-à-vis the US
dollar in two years. Increasing costs at home and an
appreciated currency attracted Japanese firms to expand
their business operations overseas. Mr. Sakakibara
believed that regional integration is irreversible. Intra-
regional trade will continue to increase, which makes
regional cooperation very compelling. If trade in the
region reached 60%, a common market could be
forged in 30–40 years; although the form may differ
from that of the EU.
Look West: The Evolution of US Trade Policy
Toward Asia in the Context of the Global
Finalncial Crisis
Vinod K. Aggarwal,
Professor in the Department
of Political Science and
Director of the Berkeley
APEC Study Center at the
University of California at
Berkeley, gave a lecture on
the evolution of US trade
policy toward Asia. Based on
his proposed nomenclature of
17
 Year in Review 2009
free trade agreements (FTAs), he divided the evolution
into four phases: (i) multiproduct multilateralism from
post-World War II until the mid-1950s; (ii) ”liberal
protectionism” from the mid-1950s to the early-1980s;
(iii) regionalism from the 1980s to the mid-1990s;
and (iv) “competitive liberalism” from the mid-1990s
to 2008. Mr. Aggarwal believed that the Trans-Pacific
Economic Partnership between New Zealand, Chile,
Singapore, and Brunei Darussalam (also known as the
P4 group), can provide an avenue to develop an FTA in
the Asia and Pacific region.
Postcrisis Issues and East Asia
Duck-Koo Chung,
Chairman of the NEAR
Foundation and Professor
in the Graduate School of
International Studies at
Seoul National University,
addressed the postcrisis
issues confronting Northeast
Asian countries—Japan,
Republic of Korea (hereafter
Korea), and the PRC—and laid out the challenges
the region faced in securing stability and prosperity
in the postcrisis era. For Japan and Korea, both need
to address rising population dependency ratios,
inefficient service sectors, and depressed consumption.
For the PRC, its currency risks are amplified given its
huge foreign reserves and its status as the biggest US
creditor. The PRC needs to change its growth paradigm
and commercialize its banks. He also identified two
18
salient factors influencing the process of creating an
East Asian economic community: (i) the Chiang Mai
Initiative Multilateralization; and (ii) regional exchange
rate stability.
Why the Euro is NOT the Next Global Currency?
Jean Pisani-Ferry, Director
of Bruegel and Professor of
Economics at the Université
Paris-Dauphine, lectured on
the internationalization of
the euro and its prospects
of becoming a global
currency. He argued that
the euro is unlikely to be en
route to become the next
global currency. The data demonstrated that the euro
dominated only in the euro region whereas the US
dollar dominated trade everywhere else. He identified
the factors, such as demographic decline and financial
fragmentation, which limit the internalization of the
euro, and posited remedies for each. He suggested
that the eurozone should adopt a proactive stance
towards “euroization” and should send out clear
signals of assistance to partner countries in times of
economic distress.

Conferences
ADBI’s Research department organized 47 events in
2009, some of which were jointly organized with other
institutions. Many of these events provided a platform
for debate on emerging development issues in the
region, and others were aimed at soliciting comments
on the preliminary drafts of ADBI’s research outputs
as part of ADBI’s research quality-control mechanisms
and dissemination.
Global Financial Crisis
Under the GFC Project, 22 conferences were held
under their respective themes; some of them are
highlighted here.
Macroeconomic Impacts and Policy Under this
thematic area, ADBI held six events that discussed
a range of macroeconomic issues, including growth
impact scenarios for the ongoing global economic
crisis, lessons from previous crises, the prospects for
rebalancing growth away from exports and policy
recommendations for fiscal policy, monetary policy,
and currency and reserve management. Participants
Research Highlights
at the conference, Global Financial Crisis: Impacts,
Lessons, and Growth Rebalancing, reviewed the
effects of the global economic and financial crisis on
Asia in order to set up a reference basis for future
conferences dealing with appropriate policy responses.
Generally, research showed that Asian countries were
better poised to address problems prior to the crisis
than were other countries, owing mainly to the reforms
undertaken after the 1997–1998 Asian crisis. In the
aftermath of that crisis, Asian governments tempered
inflation and established prudent fiscal policies, ample
foreign reserves, and healthy financial systems. The
crisis mainly hit production in export-dependent
sectors where authorities responded by easing
monetary conditions and fiscal stimulus packages. The
conference, Global Financial Crisis: Macroeconomic
Policy Issues, developed concrete macroeconomic
policy recommendations regarding ways to improve
monetary policy frameworks, improve the effectiveness
of fiscal policy, and improve the trade-offs between
monetary policy independence, reserve management,
and currency stability.
19
 Year in Review 2009
Real Economy (Sector) Impacts Three conferences
were completed under this thematic area and addressed
a range of issues, including the impacts of the GFC on
small- and medium-sized enterprises (SMEs) and trade
finance in Asian countries, labor market adjustment to
the GFC, and implications of the crisis for investment
and productivity. The conference, SMEs and Trade
Finance Impacts, reviewed evidence and analyzed the
impacts of the global economic and financial crisis
on SMEs and trade finance in Asian countries. The
conference, Labor Market in the People’s Republic
of China (PRC) and its Adjustment to the Global
Financial Crisis, discussed the development of
the labor market in the PRC and assessed policy
implications for dealing with long-term growth
constraints, income inequality across regions, and the
current GFC. It also discussed labor market adjustment
experiences and lessons of other Asian countries,
including Thailand, from the 1997–1998 Asian crisis
that could be useful in dealing with the impacts of the
ongoing GFC.
20
Social and Environmental Impacts Two events were
completed under this theme. The first conference,
Global Financial Crisis and Social Sector Policy
Issues, reviewed evidence and analyzed the social
impacts of the global economic and financial crisis on
Asian countries. The conference discussed in detail
the effectiveness of existing social sector policies and
programs in Asia including social insurance, education,
and health. The conference, Global Financial Crisis
and Environmental Policy Issues, reviewed evidence
on and analysis of the environmental impacts of the
global economic and financial crisis. It discussed in
detail the impacts on the environment from potential
industrial restructuring and new product development
such as green products and policy measures to ensure
that a low carbon society will form an integral part of
the recovery.
Financial Sector Reform and Regulation The five
conferences completed under this thematic area covered
a wide range of issues including payment system, credit
rating, capital market development, and financial sector
reform and regulation. The conference, Credit Ratings,
Credit Rating Agencies, and their Developments in
Asia, reviewed issues about credit agencies, theoretical
rationales, development, challenges, and future
prospects in Asia. It focused on ways to increase the
coverage of Asian issuers and to harmonize ratings
across countries. The conference, Financial Sector
Regulation and Reform in Emerging Markets, used
the opportunity of the GFC to re-examine the basic
principles of financial regulation—such as mechanisms
for dealing with open capital accounts and measures to
increase economic inclusion via micro finance—and
assess their applicability to emerging markets.
Regional Cooperation and Regional and Global
Architecture The six events completed under this theme
examined policy issues and recommendations for
improving and/or developing regional economic policy
and institutions aimed at preventing the recurrence of
a systemic financial crisis in the region; improving the
resilience of regional economies to external economic
and financial shocks; and strengthening the basis
for sustainable, long-term growth. The conference,
Asian Architecture and Global Governance, jointly

organized with ADB’s OREI and ERD discussed ways
for making IEIs more adaptable to the demands of a
rapidly changing world economy, possible scenarios for
the future global reserve system, and key conceptual
issues related to the mechanisms that determine
how national and regional governance impacts the
international process. The conference, Europe in
Crisis?: Lessons for Asia and from Japan, jointly
organized with the Policy Research Institute of the
Ministry of Finance, Japan, covered three thematic
areas: (i) implications for the eurozone and Asia; (ii)
implications outside the eurozone; and (iii) lessons for
Asia from Europe and Japan. The global financial and
economic crisis revealed that one-size-fits-all monetary
policies could “nurture” structural divergence and
lack of competitiveness, and provide no incentives for
structural adjustments. Participants also identified key
challenges arising from fiscal expansion, including exit
policies, rising fiscal debts, and further fiscal policy
coordination in the post-crisis era.
Other Conferences:
Aside from the GFC series of conferences, five
conferences were completed under the priority
theme regional cooperation and integration. The
events addressed such topics as the structural links
among the US, the PRC, and Japan; market access
ADBI Dean Kawai and other panelists discuss social protection at ADBI’s Annual Conference in Tokyo.
Research Highlights
and the severity of the noodle bowl effect on trade;
the effects of exchange rate policy on Asia and in the
PRC; and accelerating regional integration. ADBI’s
12th Annual Conference was held under the theme
inclusive and sustainable growth and focused on the
impact of social policy reforms on domestic demand.
The issues discussed include the relationship between
household savings and social protection policies and
demographic trends as well as the potential of state-
owned enterprises’ corporate surpluses for funding
government social spending, particularly in the case of
the PRC.
Workshops and Seminars
In 2009, ADBI’s Research department hosted two
workshops. The first, Asia’s Agenda for G-20 Summit,
was a brainstorming session that developed the
proposals of Asian economies for the Group of Twenty
(G20) Summit. The second, Asia’s Response to the
Global Financial Crisis and Inception Meeting
for the GFC Book was intended as a preliminary
structured discussion for the GFC book on the
implications of the global crisis on Asia and policy
recommendations for achieving sustainable and
inclusive growth.
21
 Year in Review 2009
The Research department conducted three seminars
in 2009. The first seminar, Impacts of the Global
Financial and Economic Crisis on Uzbekistan
and other Central Asian Countries by Mahmud
Hadjimetov, Counselor on Trade and Economic
Affairs at the Embassy of the Republic of Uzbekistan
in Japan, discussed Uzbekistan’s experience in dealing
with the global financial and economic crisis. The
second seminar, What is the Impact of the Global
Financial Crisis on the Banking System in Asia?,
by Michael Pomerleano, Advisor to the Bank of
Israel and an Economist at the World Bank, assessed
the impact of the global crisis on the Asian banking
system using the standard framework of risk analysis
based on capital and reserves adequacy, asset quality,
management earnings, liquidity, and sensitivity to
market risk (CAMELS). The third seminar, Financial
Fragility and the Business Cycle: A Nonlinear VAR
Analysis, by Fabio Fornari, Senior Economist at the
European Central Bank, discussed the potential of
vector autoregression (VAR)-augmented probit model
22
in identifying threats of recession over short- and
medium-term horizons in a quick manner as the input
data, i.e., financial variables, are available in real-time.
Brown Bag Lunch Seminars
The brown bag lunch (BBL) seminar series provides
a platform for presenting researchers’ preliminary
research ideas and findings in order to solicit comments
from ADBI staff. In 2009, 14 BBLs were held (see
Appendix 3 for the full list of BBL seminars).
Visiting Researcher Program
The ADBI Visiting Researcher Program is run
competitively for researchers from ADB’s DMCs. In
addition, ADBI engages a number of outstanding
scholars from all ADB member countries as visiting
fellows to participate in ADBI’s research activities. A
visiting researcher or fellow works on a topic of interest
that falls under one of ADBI’s three priority themes.
 Research Highlights

Visiting Researcher Program, 2009

Names Country Institution

Visiting Fellows

Shin-ichi Fukuda Japan University of Tokyo

Robert F. Owen United States/France University of Nantes

Iwan Jaya Azis Indonesia Cornell University

Cielito F. Habito Philippines Ateneo de Manila University

Michael Pomerleano United States World Bank

Peter A. Petri United States Brandeis University

Visiting Scholars

Anita Giselle Doraisami Australia International Monetary Fund

Hiroyuki Ito Japan Portland State University

Kanda Naknoi Thailand Purdue University

Visiting Researchers

Bhim Adhikari Nepal University of Michigan

Jacob George India University of Delhi

Swapan Bhattacharya India Indian Institute of Public Administration

Prabir De India Research and Information System for Developing Countries (RIS)

23
Capacity Building and Training
I
n 2009, 30 courses and workshops
were conducted under ADBI’s three
priority themes (Appendix 4). A total
of about 1600 participants attended these
events. About 62% of the participants
were government officials, half of whom
held senior positions (director and
above). Efforts were made to incorporate
discussion of the impacts of the GFC
on the Asia and Pacific region, country
responses, and postcrisis development
policies into CBT ’s program where
applicable and appropriate.
Inclusive and Sustainable
Growth
Nineteen activities were conducted under
the theme of inclusive and sustainable
growth. These events addressed
capacity building needs in the areas of
PPPs in infrastructure, water resource
management, financial and capital
market development, trade facilitation,
employment, environmentally sustainable
growth, and Millennium Development
Goals (MDGs). Some of these activities
are briefly described here.
More than 300 participants from 39
countries in the Asia and Pacific region
and globally participated in the 6 th
Microfinance Training of Trainers
Course (MFTOT), offered from July to
October. Among them, 244 participants
successfully completed the course, 174
of whom were accredited as certified
trainers; with the support of the African
Development Bank, the course included
participants from Africa as well. In
addition to the availability of learning
materials in Bahasa Indonesia, Chinese,
Khmer (Cambodia), Lao, Mongolian,
Thai, and Vietnamese, the 6th MFTOT

2009 CBT Participants Breakdown by Region
Others
Southeast Asia
South Asia
Pacific
Central West Asia East Asia
benefited from ADBI’s workshop on promoting
financial inclusion through innovative policies that was
conducted earlier in the year. Emerging issues discussed
at the workshop were incorporated into the MFTOT
videoconference program, including the impact of the
global financial crisis on microfinance industries and
the expansion of microfinance through mobile banking.
Capacity Building and Training
The Workshop on Promoting Financial Inclusion
through Innovative Policies discussed approaches
to and exchanged country experiences on financial
inclusion, focusing on six key areas: agent banking,
mobile banking, diversifying providers, reforming
public banks, financial identification, and consumer
protection. Workshop participants found that
providing financial services through non-bank agents
helps to save costs and make the services more
convenient to use and access. As mobile phone usage
expands to low income and rural groups, a range of
banking services, such as deposit taking, withdrawal,
and payment transactions, can be offered through
mobile services. At the same time, lowering regulatory
barriers for start-up institutions promotes development
of various financial products geared toward low-income
clients. Many poor people, however, lack personal
identity (such as a birth record) or financial identity
(such as credit history), which constrains their access
to formal financial services. Various options were
discussed for developing identity, taking advantage of
IT innovations, and statistical analysis.
25
 Year in Review 2009
More than 100 participants debated the causes of the global financial crisis and the implications for capital market
development in Asia at the ADBI-OECD Roundtable in March.
The OECD-ADBI 10 th Roundtable on Capital
Market Reform in Asia brought together more
than 100 policymakers and experts from Asia, the
Americas, and Europe to discuss the causes of the
GFC, and the impact on and implications for capital
market development in Asia. The causes of the crisis
were discussed at different levels: inadequate financial
sector supervision contributed to a housing price
bubble while financial innovation, deregulation,
and relaxation of residential underwriting standards
created the toxic products that were at the root of the
crisis. The discussion participants agreed that hedge
funds did not play a significant role, partly because
their leverage was lower than often assumed. Instead,
the main sources of instability were found in the
highly regulated banking sector, where leverage was
higher. Direct effects on Asia were small as emerging
Asian banks had limited exposure to subprime losses
though the region experienced greater volatility in
financial markets, exchange rates and equity markets as
declining consumer demand in the US and Europe led
to significant drops in Asian exports.
26
At the Employment in the Postcrisis Context
conference organized in collaboration with the
International Labour Organization’s International
Institute for Labour Studies, policymakers discussed
the adverse impact of the GFC on the labor market—
especially for young people, immigrants, and low-
skilled and temporary workers, who are bearing most
of the brunt of the job losses—as well as the policy
implications for unemployment insurance, social
protection, enterprise financing, and green growth. The
conference called for exit strategies that minimize the
crisis’ potential adverse impacts on existing jobs and
reform of the social protection system that pays greater
attention to improving vocational and entrepreneurial
skills of low-skilled workers, SMEs, and micro-
enterprises so they can take better advantage of growth
rebalancing strategies in Asia.
A regional workshop on Mainstreaming Climate
Change Adaptation into Developmental Planning
had senior officials from the Asia and Pacific region’s
most vulnerable developing countries and small

island states exploring ways to better integrate
adaptation measures into their development plans.
The workshop identified the barriers to “effective
mainstreaming” as insufficient scientific information,
lack of communication between the science and
policy communities, absence of a knowledge base on
successful measures, and lack of funding. There is
therefore a need to i) maintain or even increase budget
support for scientific research and pilot projects, as well
as joint meetings between scientific and policymaking
communities, and ii) share climate data and best policy
practices at the regional level. In addition, land use
planning, water management planning, redesigning
structural standards, and effective application of
environmental impact assessments methods could be
applied as an entry point to integrate climate change
information into developmental planning.
The workshop on Low Carbon Green Growth was
held at the Asian Institute of Technology, where senior
officials from large, Asian, carbon-emitting economies
explored renewable energy and energy efficiency
Capacity Building and Training
opportunities, including technology transfer issues
and financing options. The participants discussed
energy efficiency approaches that integrate process level
environmental systems and product labeling systems
and encourage wider use of low carbon technologies.
National innovation systems can promote indigenous
technologies through enabling market conditions and
intellectual property regimes. Clean Development
Mechanisms help generate capital for low carbon
investment by creating a global trading market for
certified emission reductions. Putting an appropriate
price on carbon through a carbon emission tax may
also promote investment in green technologies.
The workshop on Eco-Industrial Clusters: Policies
and Challenges was held to discuss policy constraints
and strategies to transform industrial clusters into eco-
friendly economic zones. Eco-industrial clusters (EICs)
are groups of interconnected companies that cooperate
with each other and with the local community to
efficiently share resources. By maximizing the use of
resources through eco-efficiency approaches and the
27
 Year in Review 2009
3Rs—reduce, recycle, reuse—policy, EICs offer greater
opportunities for SMEs to achieve both environmental
and economic competitiveness. With appropriate
social, technological, and financial support, EICs can
promote synergies among downstream and upstream
businesses and foster sustainable development in the
urban fringe areas. Public policy measures that support
EICs include industrial policy that inspires innovation
and technology development, environmental policy
that focuses on resource conservation and emission
reduction, and regional development policy that seeks
to stimulate necessary infrastructure investment.
As part of the Multilateral PPP for Infrastructure
Capacity Building (MP3IC) initiative ADBI has
been implementing in collaboration with the World
Bank Institute and the Inter-American Development
Bank Multilateral Investment Fund, five workshops
and seminars were organized in Asia and the Pacific to
The Strengthening Governance for Infrastructure Service Delivery: The Role of Public Private Partnerships Symposium brought
together more than 40 global and regional governance experts and senior-level managers from public sector training
institutes in March.
28
share global PPP practices and lessons learned among
PPP policymakers and program managers in order
to improve the design and implementation of PPP
programs, enhance access to and lower the cost of
infrastructure service delivery. A number of country
and sector case studies were prepared as inputs into the
MP3IC global learning products.
Regional Cooperation and
Integration
Four CBT activities were held under the theme
of regional cooperation and integration. They
addressed development policies and issues related
to and facilitated sharing of country experiences on
ROOs, international tax treaties, WTO sanitary and
phytosanitary (SPS) measures, and competition policy
and law. Brief summaries of a selection of these events
follow.

A subregional workshop on Preferential Rules of
Origin (ROO) for South Asian Association for
Regional Cooperation (SAARC) members was
organized, in collaboration with ADB, United Nations
Conference on Trade and Development (UNCTAD),
ASEAN Secretariat, and the Ministry of Finance of
Japan. The workshop examined existing preferential
ROO—such as the generalized system of preferences
(GSP), ASEAN Free Trade Area, ASEAN-PRC, and
ASEAN-Japan—that are directly relevant to their
respective signatory members as well as the role of
ROO in FTA implementation. ROO experts and
participants explored ways to improve South Asian
Free Trade Area (SAFTA) ROO to further facilitate
crossborder trade within and outside the SAARC
region, and identified a set of recommendations to be
put to SAARC members for their consideration.
ADBI, the Japan Fair Trade Commission, and the
Authority for Fair Competition and Consumer
Protection of Mongolia, jointly organized the 5th East
Asia Conference on Competition Law and Policy
and 5th Top-Level Officials Meeting on Competition
Policy to promote sharing of country experiences in
establishing and implementing competition policy
and laws, and promoting competition advocacy in
their respective economies. Approximately 140 experts
and senior officials on competition policy attended
the conference and meeting from eleven East Asian
economies.
Capacity Building and Training
Governance for Policies and
Institutions
Seven CBT activities were conducted to enhance
the effectiveness of government policies and their
implementation in the areas of PPP, competition
policy, tax administration, journalism, and financial
sector reform and regulation. Here are brief summaries
of a selection of these events.
The 3 rd ASEAN Experts Group on Competition
training workshop on Costs and Benefits of
Competition Policy, Law, and Regulatory Bodies
was jointly organized by ADBI, the US Federal Trade
Commission, and the ASEAN Secretariat. Thirty-
two senior officials from ASEAN competition and
related authorities and agencies as well as the ASEAN
Secretariat participated in the workshop, which focused
on issues, tools, methodology, and country experiences
on assessment of the costs and benefits of competition
policy and law; design of effective competition law;
efficiency of competition regulatory bodies; challenges
for better regulatory management for small and
developing economies; and generating evidence to
guide merger enforcement.
A regional workshop on the Challenges in the
Implementation of Competition Law that was
jointly organized by ADBI, ASEAN Secretariat, and
the Department of Internal Trade of Thailand brought
29
 Year in Review 2009
together more than 50 middle-senior officials from
competition or related agencies in ASEAN countries,
PRC, Mongolia, India, Pakistan, and Sri Lanka to
exchange their views and experiences on advocacy,
enforcement, drafting of competition law, and
institutional capacity building with experts from the
US, Japan, Australia, United Kingdom, and Germany.
The workshop found that: i) raising public awareness
facilitates information gathering; ii) combined financial
and individual sanctions, backed by strong leniency
policy, are effective in deterring future violation of
competition law; and iii) engaging and retaining the
right talent, leveraging on technology, streamlining
procedures, and regular training are institutional
requirements for effective competition enforcement.
The Tax Administration Seminar VI was held in
cooperation with Japan’s National Tax Agency and the
Vietnamese General Department of Taxation. Twenty-
four tax administrators as well as thirteen observers,
Development journalists tackled the financial crisis and climate change in the 2009 DAJA competition.
30
from eight Southeast Asian countries participated in
the seminar. Participants discussed and explored ways
to establish an effective e-filing and payment system,
including financial and human resource requirements.
Such a system would be expected to bring a set of
benefits to both taxpayers and tax administrations, such
as time-saving, cost effectiveness, accuracy, increase of
productivity, and safety.
The 2009 Developing Asia Journalism Awards
(DAJA) and Training brought 22 journalist-finalists
to Tokyo for a four-day training workshop and
awards ceremony. Participants from across Asia were
able to meet with experts on DAJA’s four themes
for 2009: i) the poverty impact of the GFC, ii)
government responses to the GFC, iii) infrastructure
development, and iv) climate change adaptation. Top
journalists from the Philippines and India won the
titles of Development Journalist of the Year and Young
Development Journalist of the Year, respectively.
 Capacity Building and Training

Post-Event Survey
In 2009, post-event surveys were conducted with CBT
events participants from 2008 in order to assess the
impacts and application of knowledge gained from the
events as well as to seek participants’ suggestions for
future issues. The survey results showed that more than
80% of the participants rated the impact of CBT events
on their personal career development as significant
to very significant. About 70% of respondents
indicated significant to very significant impact on their
organizations. After the events, participants usually
shared their course materials with others and spoke at
internal seminars on issues related to the CBT activities
that they had attended. Some of them also spoke at
local seminars on issues related to the event or wrote
an article or report about the event. Most participants
applied the knowledge gained from CBT activities to
improve the productivity of their day-to-day work,
align national practices to best practices, and improve
the effectiveness of their policy implementation. In
terms of constraints in the application of knowledge,
40% of respondents indicated that the application
requires facilities or equipment they do not have. A few
others cited the lack of time due to other obligations/
duties and the sophistication of concept/technique.

When asked about their post-event activities, about

85% of participants continued to network with
each other after the events they attended, mainly to
share country-specific information and foster closer
cooperation. About 60% of participants kept in touch
with some resource speakers to seek their advice,
including updates and suggestion of other experts on
relevant issues. Study participants suggested topics
for future activities that range from water resources
management, climate change, PPP in infrastructure,
and ROOs to competition policy, regional cooperation,
poverty reduction, and human rights.

31
Outreach Highlights
A
DBI continued to enhance its
outreach activities to reach target
audiences of policymakers,
academics, think tanks, and the private
sector. The institution has improved the
quality of its publications by stringently
f o l l ow i n g i t s n e w l y s t r e n g t h e n e d
publications guidelines.
ADBI expanded its outreach program
using the media in Japan and
internationally. A series of nine interviews
with ADBI’s dean were published in
the Japanese language newspaper, Asahi
Shimbun. The dean was also interviewed
b y J a p a n’s N H K t e l e v i s i o n a n d
Bloomberg on the subject of the GFC. In
March, a press conference was held at the
Foreign Correspondents’ Club of Japan
to launch two reports: Recommendations
of Policy Responses to the Global
Financial Crisis for East Asian Leaders
and Recommendations for East Asian
Leaders for G20 Meeting. Over 40
journalists attended the conference and
the story was picked up by news wires
and international newspapers.
ADB’s four knowledge departments
(ADBI, ERD, OREI, and RSDD)
have closely coordinated their work
programs to improve synergy in their
knowledge creation efforts. ADBI staff
join the meetings of ADB’s knowledge
m a n a g e m e n t c o o rd i n a t o r s . A D B I
l e d t h e p re p a r a t i o n , p u b l i c a t i o n ,
and dissemination effor ts of ADB
headquarters’ and ADBI’s collaborative
flagship study, Infrastructure for a
Seamless Asia. The prepublication
version of the book was launched at
ADB’s annual meeting in May 2009,
and disseminated at several external
(non-ADBI) events and at workshops
 Outreach Highlights

in Cambodia, Canada, Japan, and the US. ADBI is
collaborating with OREI on a project on the impact of
free trade agreements on business in Asia, the output
of which will be a book to be copublished with a
commercial publisher.
ADBI’s website is the key dissemination tool for
ADBI’s knowledge products and underpins ADBI’s
communication strategy. Website traffic continues
to grow as the site is regularly updated with new
research publications, event announcements, and CBT
workshop papers and presentations. In 2009, successful
web hits averaged over 2 million per month, an
increase of more than 20% over 2008. In addition to
online publishing, the website is used as an advertising
tool for ADBI employment and business opportunities,
online registration for events, and article submissions
for the 2009 DAJA program, for which over 250
journalists from DMCs registered for the 2009 event
and submitted some 200 articles. Technical reports
of web hits, number of downloads, and user statistics
are disseminated to staff each month to encourage
awareness of the website as a dissemination tool.
Authors are informed when their papers and books are
posted online and ADBI encourages them to share this
information with their colleagues and networks.

Hits and Page Views, 2009

3,000,000 1,000,000

Number of Successful Hits 900,000

2,500,000
800,000
700,000
2,000,000

Page Views
600,000
Hits

1,500,000 500,000
400,000
1,000,000 Page Views for Month
300,000
200,000
500,000
100,000
0 0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Visitors and User Sessions, 2009

200,000 60,000

50,000
150,000 Unique Visitors
Total User Sessions

Unique Visitors

40,000

100,000 30,000

Total User Sessions 20,000

50,000
10,000

0 0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

33
 Year in Review 2009
In 2009, e-newsline, ADBI’s daily e-newsletter
of development news, reached more than 3,700
subscribers, a 10% increase over 2008. ADBI’s
e-notification service, which sends out electronic
updates on new ADBI materials and opportunities,
had over 5,800 subscribers (an increase of 16%).
Participating in external events is an effective
way to promote ADBI’s work in the region and
internationally. The dean, as the key spokesperson
for ADBI, was an invited speaker at nearly 40 events,
and ADBI staff were invited to speak at many other
external events. Staff attendance at high-level events
provides opportunities to build partnerships with well
known academics and policymakers, thus giving ADBI
greater visibility and more recognition.
Publications
In 2009, ADBI circulated 53 papers under its working
paper series. Three research policy briefs and one
research paper were also published and disseminated.
ADBI Dean Masahiro Kawai, Thailand’s Chalangphob Sussangkarn, and PRC’s Zhang Yunling address the press at the Foreign
Correspondents’ Club of Japan to present the Asian Policy Forum’s recommendations ahead of the G20 meeting.
34
ADB headquarters’ and ADBI’s flagship book,
Infrastructure for a Seamless Asia, was formally
launched at ADB’s annual meeting in May. Other
books published were: ADBI Year in Review: 2008,
Asia’s Contribution to Global Economic Development
and Stability from the 2008 ADBI annual conference,
and Infrastructure’s Role in Lowering Asia’s Trade
Costs: Building for Trade, copublished with Edward
Elgar, this is ADBI’s first commercially copublished
book to be posted online as a read-only file, and was
made available for free download after 12 months.
Eleven ADBI working papers were published or
accepted for publication in international journals. The
average number of downloads from ADBI’s website per
month was more than 72,000, showing that ADBI’s
publications reach a large audience. An example of the
value of the website as a dissemination tool for ADBI’s
products is the number of times Infrastructure for a
Seamless Asia book was downloaded—51,000 times
from when it was first published on 15 September until
31 December.
 Outreach Highlights

E-newsline and E-notification Subscribers, 2009

6,000 4,000
Total Number of
E-newsline Subscribers

E-newsline Subsciribers
5,500 3,500
E-notification Subsciribers

Total Number of
5,000 E-notification Subscribers 3,000

4,500 2,500

4,000 2,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Number of Downloads by Month, 2009

140,000

120,000 117,826

98,385
100,000 93,696
81,875 82,905
80,000 74,689
74,689 71,416
68,373
60,664 63,274 63,707
60,000
50,037
40,000

20,000

0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

The CBT depar tment produced a CD-ROM, Conferences, Seminars, and

Mainstreaming Climate Change Adaptation into Workshops
Developmental Planning, which is a compilation of ADBI’s research outreach activities in 2009 included
papers and presentations from a workshop held in 61 conferences, seminars, and workshops, most of
April 2009. The CD-ROM was produced primarily for which were jointly organized with other institutions.
disseminating to workshop participants; copies have Research activities in 2009 focused on the GFC with
been sent to more than 40 members of the public who 22 events held on that topic. These events provided a
requested a copy. 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 mechanisms
and dissemination.

35
 Appendix 1: Organization Chart

Dean Advisory Council

Masahiro Kawai Masahiko Aoki Eric Girardin
K. M. Chandrasekhar Andrew MacIntyre
Victor H. Frank, Jr. Jong-Wha Lee
Gang Fan

Research Capacity Building Administration, Management,

and Training and Coordination

Director
Director Director
Worapot
Mario B. Lamberte Manupipatpong Takashi Kihara
Lead Professional
and Special
Advisor to Dean
Biswa Nath Principal
Bhattacharyay Senior Capacity Communications
Senior Research Fellow
Building Specialist Specialist
Willem Thorbecke
Elaine Glennie Ainslie Smith

Legal Advisor
Research Fellow Senior Capacity
and Senior
Building Specialist Administrative Officer
Gloria Pasadilla
David Kruger Grant Stillman

Senior Capacity Administrative Officer

Research Fellow
Building Specialist
Doo Yong Yang Toshimasa Mae
Teruo Ujiie

Capacity Building
Senior Consultant for
Specialist
Research
Anbumozhi
Peter Morgan
Venkatachalam

Visiting Fellows and

Senior Consultant for
Researchers
Capacity Building
Shin-ichi Fukuda John West
(Japan)
Robert Owen
(United States) Japan Water
George Jacob Agency Representative
(India) Tadashige Kawasaki
Iwan Azis
(Indonesia)

(as of 31 December 2009)

36
 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

Non-Regional
Regional Borrowing Regional Non-Borrowing
Non-Borrowing ADB
Member Countries Member Countries
Member Countries
2008–2010 K. M. Chandrasekhar Masahiko Aoki Victor H. Frank, Jr.
(India) (Japan) (US)*
Jong-Wha Lee
Chief Economist
Gang Fan Andrew MacIntyre Eric Girardin
(PRC) (Australia) (France)

2006–2008 Li Yong Masahiko Aoki Victor H. Frank, Jr.

(PRC) (Japan) (US)
Ifzal Ali
Chief Economist
Ajit K. Jain Andrew Maclntyre Eric Girardin
(India) (Australia) (France)

2004–2006 Li Yong Masahiko Aoki William P. Fuller

(PRC) (Japan) (US)
Ifzal Ali
Chief Economist
Corattiyil Ramachandran Kanit Sangsupan Eric Girardin
(India) (Thailand) (France)

2002–2004 N. C. Saxena Yujiro Hayami William P. Fuller

(India) (Japan) (US)
Ifzal Ali
Chief Economist
Zhang Xiaoqiang Ronald Charles Duncan Magnus Blomström
(PRC) (Australia) (Sweden)

2000–2002 Y. Venugopal Reddy Yujiro Hayami William P. Fuller

(India) (Japan) (US)
Arvind Panagariya
Chief Economist
Zhang Xiaoqiang Ronald Charles Duncan Magnus Blomström
(PRC) (Australia) (Sweden)

1998–2000 Justin Yifu Lin Yonosuke Hara Jeffrey R. Shafer

(PRC) (Japan) (US)
Jungsoo Lee
Chief Economist
Chandi Chanmugam Helen Hughes Fabrizio Onida
(Sri Lanka) (Australia) (Italy)

* Victor H. Frank, Jr. passed away in April of 2010.

37
 Appendix 3: Brown Bag Lunches

Presentation Title Speaker Title and Affiliation

Market-Based Approaches to Environmental

1 Management: Lessons from Payment for Bhim Adhikari Research Fellow, The University of Michigan
Environmental Services in Asia

Enriching Growth-Poverty Elasticity Analysis in Asia:

Director of Ateneo Center for Economic Research
2 What Guidance Might It Offer in Dealing With the Cielito Habito
and Development, Ateneo de Manila University
Global Financial Crisis?

Impact of Globalization on Employment and

Senior Fellow, National Council of Applied Economic
3 Poverty Reduction in India: The Case of Shopping Kanhaiya Singh
Research
Malls and Retailers

4 The Global Financial Crisis Michael Pomerleano Lead Financial Specialist, The World Bank

Applying the Lessons of Asia: The IMF’s Crisis

5 Shinji Takagi Professor of Economics, Osaka University
Management Strategy in 2008

Regional Infrastructure and Governance in Fellow, Research and Institution System for
6 Prabir De
Institutions: Evidence from Asia Developing Countries

Foreign Direct Investment, Institution Quality, and

7 Kanda Naknoi Assistant Professor of Economics, Purdue University
Bilateral Investment Treaties

An Empirical Analysis of ASEAN’s Labor-Intensive Senior Research Fellow, Asian Development Bank
8 Willem Thorbecke
Exports Institute

Governance and Regional Integration in Asia from

9 Robert Owen Professor of Economics, University of Nantes
a Global Perspective: Some Preliminary Insights

Regional Economic Integration among South Asian

Associate Professor of International Trade, Indian
10 Economies: Measuring Impact of South Asian Free Swapan Bhattacharya
Institute of Public Administration
Trade Area

Fiscal Policy Response to Global Financial Crisis

11 in Selected Asian Developing Economies: Some Anita Doraisami International Monetary Fund
Challenges and Policy Implications

Brain Drain, Brain Gain and Brain Waste: Conceptual

12 Robert Owen Professor of Economics, University of Nantes
and Policy Issues

Cross-border Investment Linkage among APEC

Senior Analyst, APEC Policy Support Unit, APEC
13 Economies : The Case of Portfolio Investment and Hyun-Hoon Lee
Secretariat
Bank Lending

Regional Economic Integration among South Asian

Associate Professor of International Trade, Indian
14 Economies: Measuring Impact of South Asian Free Swapan Bhattacharya
Institute of Public Administration
Trade Area

38
 Appendix 4: CBT Events

Number of Participants in Capacity Building and Training Activities, 2009

Total
Date Course or Workshop Event Location
Participants

Inclusive and Sustainable Growth

18–25 Feb 5th Integrated Water Resources Management Training 24 Hoi An, Viet Nam

2–3 Mar OECD–ADBI 10th Roundtable on Capital Market Reforms in Asia 67 Tokyo

31 Mar–3 Apr Promoting Financial Inclusion through Innovative Policies 24 Tokyo

14–17 Apr Mainstreaming Climate Change Adaptation into Developmental Planning 22 Tokyo

19–21 May Knowledge Sharing on Infrastructure Public-Private Partnerships in Asia 71 Seoul

23–25 Jun Public-Private Partnership for Infrastructure in China 77 Qingdao, PRC

24-Jun Exploring New Challenges in IWRM 17 Singapore

25-Jun Water Security in the Asia–Pacific Region 31 Singapore

Strengthening Public–Private Partnership for Infrastructure Investment

2–3 Jul 60 Ulaanbaatar
in Mongolia

2–4 Jul Water Governance 38 Singapore

15–18 Sep Opportunities and Priorities for Low Carbon and Green Growth in Asia 37 Bangkok

Advanced Geographical Information System and Satellite Information for

11-Oct 75 Manila
the Benefit of Asia

Financing and Managing Risks in PPPs at the National and Subnational

21–27 Oct 31 Melbourne, Australia
Government Level

Jul–Nov Microfinance Training of Trainers 326 Tokyo

4–6 Nov Aligning Development Policies and Strategies to Achieve MDGs in South Asia 46 Katmandu

11–18 Nov 6th Integrated Water Resources Management Training 20 Viet Nam

15–17 Dec Employment in the Postcrisis Context 25 Tokyo

16–17 Dec MP3IC Knowledge Sharing Symposium 146 Manila

8–11 Dec Eco-Industrial Clusters: Policies and Challenges 42 Tokyo

Regional Cooperation and Integration

23–26 Feb Preferential Rules of Origin for SAARC members 23 Colombo

East Asia Conference and Top Level Officials Meeting on Competition Law
29–30 Jun 99 Ulaanbaatar
and Policy

8–11 Sep WTO SPS Measures 28 Bangkok

3–6 Nov Intensive Course on International Tax Treaties 25 Tokyo

39
 Year in Review 2009

Total
Date Course or Workshop Event Location
Participants

Governance for Policies and Institutions

Strengthening Governance for Infrastructure Service Delivery:

9–11 Mar 37 Manila
The Role of Public and Private Partnerships

18–19 May Costs and Benefits of Competition Policy, Law, and Regulatory Bodies 30 Kuala Lumpur

Tax Administration Seminar VI: Taxpayer Services Focusing on E–filing and

23–25 Jun 37 Ha Noi
Payment

21–23 Jul Financial Sector Reforms and Regulations 27 Tokyo

24–26 Aug The Economics of Monopoly/Dominance 38 Da Lat, Viet Nam

20–23 Oct Developing Asia Journalism Awards 2009 22 Tokyo

11–12 Nov Challenges in the Implementation of Competition Law 37 Bangkok

Total 1,582

40
 Appendix 5: Selected ADBI Publications

Books
ADB and ADBI. 2009. Infrastructure for a Seamless Asia. Tokyo: ADBI.
ADBI. 2009. ADBI: Year in Review. Tokyo: ADBI.
Brooks, D. H., and D. Hummels, eds. 2009. Infrastructure’s Role for Lowering Trade Costs: Building for Trade.
Cheltenham, United Kingdom: Edward Elgar.
Kawai, M., and S. Stone, eds. Asia’s Contribution to World Economic Growth and Stability. Tokyo: ADBI.

Working Papers
Anna Strutt, Susan Stone
Transport Infrastructure and Trade Facilitation in the Greater Mekong Subregion
Working Paper 130, January
Juzhong Zhuang, Fan Zhai
Agricultural Impact of Climate Change: A General Equilibrium Analysis with Special Reference to Southeast Asia
Working Paper 131, February
Ying-Yi Tsai
Strategic Choice of Freight Mode and Investments in Transport Infrastructure within Production Networks
Working Paper 132, March
Renato E. Reside, Jr.
Global Determinants of Stress and Risk in Public-Private Partnerships (PPP) in Infrastructure
Working Paper 133, March
Bhim Adhikari
Market-Based Approaches to Environmental Management: A Review of Lessons from Payment for Environmental Services
in Asia
Working Paper 134, March
Hyungpyo Moon
Demographic Changes and Pension Reform in the Republic of Korea
Working Paper 135, April
Masahiro Kawai, Ganeshan Wignaraja
The Asian “Noodle Bowl”: Is It Serious for Business?
Working Paper 136, April
Masahiro Kawai, Fan Zhai
PRC-Latin America Economic Cooperation: Going beyond Resource and Manufacturing Complementarity
Working Paper 137, April
Biswa Bhattacharyay
Infrastructure Development for ASEAN Economic Integration
Working Paper 138, May
Sununtar Setboonsarng, Jun Sakai, Lucia Vancura
Food Safety and ICT Traceability Systems: Lessons from Japan for Developing Countries
Working Paper 139, May

41
 Year in Review 2009

Biswa Bhattacharyay, Prabir De

Restoring the Asian Silk Route: Toward an Integrated Asia
Working Paper 140, June
Susan Stone, Ginalyn Komoto
Determining Poverty Impacts on Lao People’s Democratic Republic and Cambodia: Reconciling Household and GTAP Data
Working Paper 141, July
Barry Bosworth, Aaron Flaaen
America’s Financial Crisis: The End of an Era
Working Paper 142, July
Daisuke Hiratsuka, Hitoshi Sato, Ikumo Isono
Impacts of Free Trade Agreements on Business Activity in Asia: The Case of Japan
Working Paper 143, July
Masahiro Kawai, Ganeshan Wignaraja
Asian FTAs: Trends and Challenges
Working Paper 144, August
Cielito F. Habito
Patterns of Inclusive Growth in Developing Asia: Insights from an Enhanced Growth-Poverty Elasticity Analysis
Working Paper 145, August
Michael Pomerleano
What Is the Impact of the Global Financial Crisis on the Banking System in East Asia?
Working Paper 146, August
Dong Chul Cho
The Republic of Korea’s Economy in the Swirl of Global Crisis
Working Paper 147, August
Shankaran Nambiar
Malaysia and the Global Crisis: Impact, Response, Rebalancing Strategies
Working Paper 148, August
Ira S. Titiheruw, Raymond Atje
Malaysia and the Global Crisis: Impact, Response, Rebalancing Strategies
Working Paper 149, August
Souvik Gupta, Jacques Miniane
Recessions and Recoveries in Asia: What Can the Past Teach Us about the Present Recession?
Working Paper 150, September
Amir Akmar Basir
Payment Systems in Malaysia: Recent Developments and Issues
Working Paper 151, September
Masahiro Kawai, Fan Zhai
The People’s Republic of China-Japan-United States Integration Amid Global Rebalancing: A Computable General
Equilibrium Analysis
Working Paper 152, October

42
 Appendix 5: Selected ADBI Publications

Masahiro Kawai, Shinji Takagi

Why was Japan Hit So Hard by the Global Financial Crisis?
Working Paper 153, October
Somchai Jitsuchon, Chalongphob Sussangkarn
Thailand’s Growth Rebalancing
Working Paper 154, October
Marie Mondeil, Sununtar Setboonsarng
Enhancing Biodiversity Through Market-Based Strategy: Organic Agriculture
Working Paper 155, October
Inkyo Cheong, Jungran Cho
The Impact of Free Trade Agreements (FTAs) on Business in the Republic of Korea
Working Paper 156, October
Masahiro Kawai, Peter Petri, Elif Sisli-Ciamarra
Asia in Global Governance: A Case for Decentralized Institutions
Working Paper 157, October
Chad Bown, Rachel McCulloch
US-Japan and US-PRC Trade Conflict: Export Growth, Reciprocity, and the International Trading System
Working Paper 158, November
Judith M. Dean, Mary E. Lovely, Jesse Mora
Decomposing PRC-Japan-US Trade: Vertical Specialization, Ownership, and Organizational Form
Working Paper 159, November
Willem Thorbecke
An Empirical Analysis of East Asian Computer Exports
Working Paper 160, November
Theresa M. Greaney, Yao Li
Assessing Foreign Direct Investment Relationships Between Japan, the People’s Republic of China, and the United States
Working Paper 161, November
Ming Lu, Hong Gao
When Globalization Meets Urbanization: Labor Market Reform, Income Inequality, and Economic Growth in the People’s
Republic of China
Working Paper 162, November
Peter Morgan
The Role and Effectiveness of Unconventional Monetary Policy
Working Paper 163, November
Rajiv Kumar and Pankaj Vashisht
The Global Economic Crisis: Impact on India and Policy Responses
Working Paper 164, November
Lars Jonung
Financial Crisis and Crisis Management in Sweden: Lessons for Today
Working Paper 165, November

43
 Year in Review 2009

Willem Thorbecke
An Empirical Analysis of ASEAN’s Labor-Intensive Exports
Working Paper 166, November
Masahiro Kawai
Reform of the International Financial Architecture: An Asian Perspective
Working Paper 167, November
Axel Börsch-Supan, Alexander Ludwig
Old Europe Ages. Can It Still Prosper?
Working Paper 168, November
Shuji Uchikawa
Small- and Medium- Enterprises in Japan: Surviving the Long-Term Recession
Working Paper 169, November
Saori N. Katada
Political Economy of East Asian Regional Integration and Cooperation
Working Paper 170, December
Brian Rankin Staples, Jeremy Harris
Origin and Beyond: Trade Facilitation Disaster or Trade Facilitation Opportunity?
Working Paper 171, December
Ram Upendra Das
Imperatives of Regional Economic Integration in Asia in the Context of Developmental Asymmetries: Some Policy
Suggestions
Working Paper 172, December
Jonathan A. Batten, Warren P. Hogan, Peter G. Szilagyi
Foreign Bond Markets and Financial Market Development: International Perspectives
Working Paper 173, December
Yasuyuki Todo, Weiying Zhang, Li-An Zhou
Knowledge Spillovers from FDI in the People’s Republic of China: The Role of Educated Labor in Multinational Enterprises
Working Paper 174, December
Alyson Ma, Ari Van Assche, Chang Hong
Global Production Networks and the People’s Republic of China’s Processing Trade
Working Paper 175, December
Larry D. Wall
Prudential Discipline for Financial Firms: Micro, Macro, and Market Structures
Working Paper 176, December
Prema-chandra Athukorala, Archanun Kohpaiboon
Intra-Regional Trade in East Asia: The Decoupling Fallacy, Crisis, and Policy Challenges
Working Paper 177, December
Pier Carlo Padoan
Fiscal Policy in the Crisis: Impact, Sustainability, and Long-Term Implications
Working Paper 178, December

44
 Appendix 5: Selected ADBI Publications

Barry Eichengreen
Lessons of the Crisis for Emerging Markets
Working Paper 179, December
Xiangfeng Liu
Impacts of the Global Financial Crisis on Small- and Medium-Enterprises in the People’s Republic of China
Working Paper 180, December
Soyoung Kim, Doo Yong Yang
International Monetary Transmission and Exchange Rate Regimes: Floaters vs. Non-Floaters
Working Paper 181, December
Mark M. Spiegel
Developing Asian Local Currency Bond Markets: Why and How?
Working Paper 182, December

Research Policy Briefs

Peter Morgan
Unregulated Entities, Products, and Markets: Challenges for Monitoring and Regulation
Research Policy Brief 30, August
Yung Chul Park
The Global Economic Crisis and Rebalancing Growth in East Asia
Research Policy Brief 31, December
Shinji Takagi
The Global Financial Crisis and Macroeconomic Policy Issues in Asia
Research Policy Brief 32, December

Research Papers
Bruno Rocha
At Different Speeds: Policy Complementarities and the Recovery from the Asian Crisis
Research Paper 74, July

CD-ROM
ADBI. 2009. Mainstreaming Climate Change Adaptation into Developmental Planning. Tokyo.

Book Chapters, Articles in Refereed Journals

Anbumozhi, V., T. Gunjima, A. Prem Nath, and C. Viswanathan. 2009. An Assessment of Inter-Firm Networks in
a Wood Industrial Cluster: Lessons for Integrated Policy Making. Journal of Clean Technology and Environmental
Policy 11: 12–24.
Bhattacharyay, B. 2009. Achieving an Integrated ASEAN Economic Community: The Role of Infrastructure
Development. In ASEAN Economic Community Blueprint, edited by the ASEAN Studies Centre, Institute of
Southeast Asian Studies. Report No. 4. Singapore.

45
 Year in Review 2009

———. 2009. Infrastructure Connectivity for East Asia’s Economic Integration. In Economics of East Asian Economic
Integration, edited by M. Fujita, I. Kuroiwa, and S. Kumagai. Cheltenham, United Kingdom: Edward Elgar.
———. 2009. Towards a Macroprudential Surveillance and Remedial Policy Formulation System for Monitoring
Financial Crisis. CESIfo WP No. 2803. Munich, Germany: University of Munich.
Bhattacharyay, B., D. Dlugosch, B. Kolb, K. Lahiri, I. Mukhametov, and G. Nerb. 2009. Early Warning System for
Economic and Financial Risks in Kazakhstan. CESIfo WP No. 2832. Munich, Germany: University of Munich.
Garcia-Herrero, A., P. Wooldridge, and D. Y. Yang. 2009. Why Don’t Asians Invest in Asia? The Determinants of
Cross-Border Portfolio Holdings. Asian Economic Papers 8(3): 228–246.
Karasulu, M. and D. Y. Yang, eds. 2009. Ten Years After the Korean Crisis: Crisis, Adjustment and Long-term Economic
Growth. Seoul: KIEP, and Washington, DC: IMF.
Kawai, M. 2009. An Asian Currency Unit for Regional Exchange-Rate Policy Coordination. In Fostering Monetary
and Financial Cooperation in East Asia, edited by D. K. Chung and B. Eichengreen. Singapore: World Scientific.
———. 2009. Can Tokyo Become a Global Financial Centre? In Competition among Financial Centres in Asia-Pacific:
Prospects, Benefits, Risk and Policy Challenges, edited by S. Young, D. Choi, J. Seade, and S. Shirai. Singapore:
Institute of Southeast Asian Studies.
———. 2009. The Role of an Asian Currency Unit. In Towards Monetary and Financial Integration in East Asia,
edited by K. Hamada, B. Reszat, and U. Volz. Cheltenham and Northampton: Edward Elgar.
———. 2009. Time to Step Forward: Asia’s Role in a New Global Financial Architecture. Global Asia (October):
62–67.
———. 2009. Why Asia Needs Its Own Monetary Fund. The Euromoney Asia-Pacific Capital Markets Handbook
2010 (October): 17–19.
Kawai, M., and M. Pomerleano. 2009. Financial Stability Regulator. Financial Times Economists’ Forum. 28 August.
Available: http://blogs.ft.com/economistsforum/2009/08/bolstering-financial-stability-regulation/.
———. 2009. International Financial Stability Architecture for the 21st Century. Financial Times Economists’
Forum. 1 August. Available: http://blogs.ft.com/economistsforum/2009/08/international-financial-stability-
architecture-for-the-21st-century.
Kawai, M., and P. B. Rana. 2009. The Asian Financial Crisis Revisited: Lessons, Reponses and New Challenges. In
Lessons from the Asian Financial Crisis, edited by R. Carney. Abingdon and New York: Routledge.
Kawai, M., and G. Wignaraja. 2009. Global and Regional Economic Integration: A View from Asia. Integration and
Trade 29(13) (January–June): 35–46.
———. 2009. Multilateralizing Regional Trade Arrangements in Asia. In Multilateralizing Regionalism, edited by R.
Baldwin and P. Low. New York: Cambridge University Press.
———. 2009. Tangled up in Trade? The “Noodle Bowl” of Free Trade Agreements in East Asia. 15 September.
Available: http://www.voxeu.org/index.php?q=node/3979.
Kawai, M., and F. Zhai. 2009. China-Japan-United States Integration amid Global Rebalancing: A Computable
General Equilibrium Analysis. Journal of Asian Economics 20:(6) (November): 688–699.
Kim, S., and D. Y. Yang. 2009. The Impact of Capital Inflows on Emerging Asian Economies: Is Too Much Money
Chasing Too Little Good? Open Economies Review. Available: http://www.springerlink.com/content/n43248510r5
24p72/?p=6b036b7335e14fb49c24b20b0c7084c8&pi=8.

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 Appendix 5: Selected ADBI Publications

———. 2009. Do Capital Flows Matter to Asset Prices? Asian Economic Journal 23(3): 323–348.
Kwark, N. S., C. Rhee, and D. Y. Yang. 2009. Crisis, Adjustment, and Long-run Economic Growth in Korea. In Ten
Years after the Korean Crisis: Crisis, Adjustment and Long-Term Economic Growth, edited by M. Karasulu and D. Y.
Yang. Seoul: KIEP, and Washington, DC: IMF.
Lamberte, M. B., and M. C. Manlagñit. 2009. The Impact of Women Membership and Employees on the Severity
of Agency Conflicts in Philippine Cooperative Credit Unions. Canadian Journal of Development Studies 29 (1–2):
183–214.
Liu, X., and V. Anbumozhi. 2009. Determinant Factors of Corporate Environmental Information Disclosure: An
Empirical Study of Chinese Listed Companies. Journal of Cleaner Production 17: 593–600.
Pasadilla, G., ed. 2009. How to Access Trade Finance: A Guide for Exporting SMEs. Geneva, Switzerland: International
Trade Centre.
Thorbecke, W. 2009. Trade Interdependence and Exchange Rate Coordination in Asia. In Monetary, Exchange Rate
and Financial Issues and Policies in Asia, edited by R. S. Rajan, S. M. Thangavelu, and R. A. Parinduri. Singapore:
World Scientific Press.
———. 2009. Reducing Global Imbalances: Perspectives from the United States and from Asia. Fiducie 17(1):
20–23.
Thorbecke, W., and H. Zhang. 2009. The Effect of Exchange Rate Changes on China’s Labor-Intensive
Manufacturing Exports. Pacific Economic Review 14: 398–410.
———. 2009. Monetary Policy Surprises and Long-Term Interest Rates: Choosing between the Inflation-Revelation
and Excess Sensitivity Hypotheses. Southern Economic Journal 75: 1114–1122.
Van Ha, N.T., C. Visvanathan, and V. Anbumozhi. 2009. Techno Policy Aspects and Socio-Economic Impacts of
Eco-Industrial Networking in the Fishery Sector: Experiences from An Giang Province, Vietnam. Journal of
Cleaner Production 17: 1272–1280.
Yang, D. Y., D. Park, and Y. M. Ju. 2009. Population Aging and International Capital Flows. KukJe Kyungje Yunku
15(1): 25–53.
Zhai, F., T. Lin, and E. Byambadorj. 2009. A General Equilibrium Analysis of the Impact of Climate Change on
Agriculture in the People’s Republic of China. Asian Development Review 26(1): 206–225.

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 Appendix 6: Top 30 Downloads of 2009

ADBI Top Downloads 2009 Year Category

1 Infrastructure for Seamless Asia 2009 Book

2 How to Draft a Project Proposal 2005 Conference materials

3 Asian FTAs: Trends and Challenges 2009 Working paper

4 Infrastructure’s Role In Lowering Asia’s Trade Costs: Building for Trade 2009 Book

5 Prepare Project Proposals 2005 Conference materials

6 Credit Rating Agencies 2004 Conference materials

7 NGO Law and Governance 2007 Book

8 Corporate Governance in Asia 2005 Book

9 ADBI Three-Year Rolling Work Program 2009–2011 and Budget for 2009 2008 Key documents

10 Post-Crisis Development Paradigm 2003 Book

11 Transport Infrastructure and Trade Facilitation in the Greater Mekong Subregion 2009 Working paper

12 Using Macroeconomic Computable General Equilibrium Models for Assessing Poverty Impact 2004 Discussion paper
of Structural Adjustment Politics

13 Enhancing Corporate Social Responsibility in Asia 2007 Conference materials

14 Results-Based Management Workbook 2005 Book

15 Successful Wastewater Management in Singapore 2004 Conference materials

16 The Global Economic Crisis: Impact on India and Policy Responses 2009 Working paper

17 Global Determinants of Stress and Risk in Public-Private Partnerships (PPP) in Infrastructure 2009 Working paper

18 Restoring the Asian Silk Route: Toward an Integrated Asia 2009 Working paper

19 Patterns of Inclusive Growth in Developing Asia: Insights from an Enhanced Growth-Poverty 2009 Working paper
Elasticity Analysis

20 Impacts of Free Trade Agreements on Business Activity in Asia: The Case of Japan 2009 Working paper

21 The Republic of Korea’s Economy in the Swirl of Global Crisis 2009 Working paper

22 Managing Capital Flows: Viet Nam 2008 Discussion paper

23 Corporate Governance in Asia: Recent Evidence from Indonesia, Republic of Korea, Malaysia, 2005 Book
and Thailand

24 Public-Private Partnerships in the Social Sector: Issues and Country Experiences in Asia and 2000 Book
the Pacific

25 The Political Ecology of Famine: The North Korean Catastrophe and Its Lessons 2002 Research paper

26 Risk Management Accounting 2004 Conference materials

27 100 Tips 100 Tools for NGO 2007 Book

28 ASEAN Logistics Network Map 2006 Conference materials

29 Asian Trade and Global Linkages 2008 Working paper

30 At Different Speeds: Policy Complementarities and the Recovery from the Asian Crisis 2009 Research paper

48