Regionally, Sri Lanka compared well with the South Asian countries but it lagged behind the dynamic South East Asian economies.

And nearly half of the investment flows from Asian developing economies is directed towards other developing economies in the region.

This can be and, in the dynamic Asian economies, has been overcome through international subcontracting.

The financial volatility seen in Asian and other emerging market economies in 1997 and 1998, however, suggests that some regulatory gaps remain in developed economies.

So, what policies must emerging Asian economies pursue to reduce their vulnerability to regional and global volatility?

OFDI from Asian developing economies was contributing to growing South South FDI flows and intra regional investment.

Reduced foreign direct investment flows from the affected Asian economies is expected to have a negative effect.

57 5 Integration of Asian and Pacific developing countries and economies in transition into the international trading system

ESCAP UNCTC (1985) Transnational Corporations From Developing Asian Economies, Bangkok Joint ESCAP CTC Unit on Transnational Corporations, 1985

Because of the greater presence of Asian economies in the world, that would also mean a slowdown in world growth.

Access to markets, foreign capital and technologies were also cited as integral to successful development in all the East Asian economies.

Furthermore, exports to the formerly dynamic Asian markets have suffered, as these economies have curtailed imports owing to their adjustment processes.

While the economies of Latin America and the Caribbean have continued this pattern of strong trade growth, Asian export growth slowed.

One speaker stressed that some Asian developing economies were already significant investors and some were emerging as investors, such as China and India.

Asian Development Bank, The role of tuna fisheries in the national economies, date unknown, available at http www.adb.org Documents Reports Tuna tuna08.pdf.

Asian economies deepening trade and financial integration has left them increasingly vulnerable to growth shocks from China, with exporters of commodities and capital goods especially vulnerable. In fact, a study by the Asian Development Bank shows that Chinese shocks have larger and more persistent effects on individual Asian economies output than do global shocks, as a 1 increase in China s GDP raised GDP in emerging East Asia by about 0.6 .

However, as the experience of the East Asian economies has shown, firm level strategy is a necessary but far from sufficient condition for enterprise development.

5. The question of how the East Asian economies had used external resources to strengthen their domestic growth dynamic was a particular concern of many delegations.

Moreover, since the 1997 Asian financial crisis, the region s emerging economies have increased their holdings of foreign exchange reserves, and now possess more than half of the world s total. Seven of the world s top ten reserve holding economies are in Asia.

Some Asian economies, especially China, are also attempting to internationalize their currencies. Given China s expanding global influence, the renminbi s emergence as a new international currency is inevitable.

The Asian financial crisis illustrated how easily a crisis can spread from country to country as economies and markets become more integrated by trade and investment links.

Another important initiative was the joint formulation of the Special Programme for the Economies of Central Asia with the Economic Commission for Europe, which aims at facilitating economic cooperation among the Central Asian economies as well as their integration into Asia and Europe.

The Asian miracle became the Asian crisis.

12. Meanwhile, other developing economies have, to varying degrees, already felt or will feel a fallout from the Asian crisis.10 It thus appears that the contagion effects of the Asian financial crisis have not left any part of the developing world entirely untouched.

Faced with severe supply constraints, Asian economies are increasingly tapping other continents fossil fuels, mineral ores, and timber. But water is extremely difficult 160 and prohibitively expensive to import.

C. Dumas, 2002, p. 5 and Asian Development Bank, The role of tuna fisheries in the national economies, date unknown, available at http www.adb.org Documents Reports Tuna tuna08.pdf.

He's a South Asian very dark skinned South Asian.

Five Asian countries most affected by the Asian crisis

SAO PAULO Few economic ideas are more lauded and reviled than that of industrial policy. Proponents, such as those who studied the rise of the East Asian economies, swear by it.

Asian countries shared an interest in ensuring that anti competitive practices did not impede or negate the realization of benefits to their economies from more liberal frameworks for investment and trade.

Such an agreement will reinforce efforts to promote cooperative arrangements in the subregion and help to integrate the economies of the Central Asian countries more firmly into the global trading system.

Yet, despite talk of a rising Asia, only a handful of East Asian economies have moved from low to high income status during the past several decades. Moreover, between 1950 and 2008, only 28 economies in the world and only 12 non Western economies were able to narrow their per capita income gap with the United States by ten percentage points or more.

Asian States

At the current stage of development of many Asian economies, a 10 increase in the median income can lead to a doubling of the middle class. And such an increase is eminently achievable.

Japan s considerable trade with and investment in other parts of Asia must give real cause for concern, in the light of the impact of the slowdown in Asian economies on its domestic growth.

If the economy cannot withstand the shock (as was the case in certain Asian economies in 1997), the signal is unlikely to have the desired impact and may even have the obverse one.

As they prepare for the coming Chinese slowdown and seek to minimize the risk of regional destabilization, Asian economies must strengthen domestic demand and reduce excessive reliance on exports to China. In other words, sustainable growth requires all of Asia s China dependent economies to rebalance their two main growth engines.

The share of consumption in GDP in these economies fell from more than 60 in the early 1980 s to less than 50 today. In China, it is less than 40 far below the norm for the world s major economies and for other Asian economies at a comparable stage of development despite nearly 7 annual average growth in China s per capita consumption in recent years.

At the same time, China was slow to open up its financial system even as other East Asian economies pursued efficiency by liberalizing their capital accounts in the 1990 s. As a result, when the Asian financial crisis struck in 1997, China was insulated from the volatility that ravaged its fragile neighbors.

Faced with weak demand in advanced countries, Asian economies are working to rebalance their sources of growth by shifting toward domestic and regional markets. As a result, growth in intra regional trade has outpaced overall trade growth, with intra Asian trade now accounting for more than half of the continent s total trade turnover.

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Which Asian Century?