Asian Economic Integration Monitor, Essay Example

Whenever there is an economic crisis, countries join hands with an intention of solving the problem at hand. This has been the case with Latin America following different financial crises. As seen, crises bring regionalism, and help to create a powerful collaboration of facing the future financial problems (ADB 15). Economic experts are keen to observe that, the crisis that occurred in Asia in 1998 helped to establish financial reforms, build nets of safety and enabled the region to put measures for curbing such problems in the future. The authors of this article, explains in depth, the progress that has been witnessed in regional integration and cooperation.

According to economic experts, the financial crisis that was witnessed in 2008 opened up frameworks of establishing trade agreements between countries. Australia, China, Korea, and New Zealand among other countries decided to launch Regional Comprehensive Economic Partnership in order to advance physical connections among these regions (ADB 15). Countries such as Korea and Japan decided to improve their net of financial safety, establish an independent unit of surveillance, and signed an agreement to continue strengthening the local currency in their region. India took the role of financing a net of financial safety in the region of south Asia, with other countries deciding to improve financial cooperation and promote local currencies. As seen, economic integration has taken a notch higher in parts of Asia, and benefits in terms of integration and cooperation has been realized. However, cooperation is yet to be realized in some areas such as border administration, and quantitative restrictions among others. This has affected transport, infrastructure, logistics, and weak financial institutions, leading to constrain in integration.

The author has managed to use a diagram showing indicators in explaining the monitors of Asian economic integration. The indicators include total trade, tourism, macroeconomic links, and capital markets. In view of these indicators, several limitations can be identified. The indicators are not exhausted, and they do not touch on other significant sections of integration and cooperation. Additionally, the indicators have diverse benchmarks for determining integration progress. Each indicator has been normalized in order to indicate change that has occurred in them. The analyst has further established an index for each of the normalized indicator. In view of the normalized indicators from 2001-2011, integration progress is evident in Asia (ADB 17). From 2006, the indicators show the progress was tampered, probably due to domestic shocks namely Thailand floods, and earthquake in Japan.

According to economic analysts, Asia should aim at exporting services, especially the modern services. They hold a promise in this region because it has a huge trained workforce to offer services in their industries. The imports and exports in China are ranked ahead of other countries such as India and Philippine.

Arguably, the amount of cash needed for modern services is not as much. Some of these services can be disbursed in other regions, and offer a good chance for Asia to create jobs for other nations. Experts observe that, these forms of exports are not prevented by physical or trade barriers and can contribute to huge regional integration. In comparing India and Philippine, the increase in services trade have led to surpluses in information and computer services among others. India has surplus emanating from telecommunication services, which raked in $59.6 billion in surplus in 2011. The cell phone subscribers are close to one billion. The surplus of Philippines is mainly in CIS, and the major reason for this is its affordability.

According to economic experts, macroeconomic independence has moved a notch higher in Asia. Arguably, the region should allow sharing of risk, by allowing others to invest in their financial assets. Models of economics hold that, if financial integration and trade are restricted, domestic output is highly correlated with consumption. Notably, integration of markets leads to sharing of risks. If a region embraces risk sharing, domestic consumption remains stable and the only thing that can bring change is a global or regional shock. Economy in the Asian countries can be made effective through mobility of labor. Some countries in parts of Asia have shortages of labor, while others have a young workforce without jobs. Flows of labor will continue to expand in the near future. Asia continues with labor surplus and shortage, and gaps in development will continue to be witnessed. Mobility of labor is very sensitive for both host and source economies and can increase political and social tensions (ADB 34).