International Institutions and Economic Development in Asia

235 Pages·2010·2.274 MB·English

by  Thanh Tri Vo

International Institutions
and Asian Development
Are international and Asian regional institutions serving the development goals of Asian
and Pacific economies as well they should? The global economy, led by the Asia Pacific
region, has undergone immense change and growth. Have the existing institutions and
arrangements been able to keep pace with those changes in the global economy?
International Institutions and Asian Development tackles these questions and is an essential
book for the assessment of regional and international institutions, as well as policy
prescriptions for reforming them to ensure they deliver on sustainable, peaceful growth
and development in the region.
Drawing from papers presented to the 32nd Pacific Trade and Development conference
in Hanoi in 2007, the contributions by distinguished authors add to the understanding
of the purpose, evolution, relevance and gaps in regional and global institutions and
their arrangements.
Shiro Armstrong is a Research Fellow at the Crawford School of Economics and
Government at the Australian National University.
Vo Tri Thanh is Director of the Department for International Economic Integration
Studies of the Central Institute of Economic Management in Vietnam.
Pacific Trade and Development Conference Series
Edited by Peter Drysdale
Crawford School of Economics and Government
Australian National University
Titles published by Routledge in association with the PAFTAD International
Secretariat and the East Asian Bureau of Economic Research, Australian
National University include:
Business, Markets and Government in the Asia Pacific
Edited by Rong-I Wu and Yun-Peng Chu
Asia Pacific Financial Deregulation
Edited by Gordon De Brouwer and Wisarn Pupphavesa
Asia Pacific Economic Cooperation (APEC)
Challenges and tasks for the 21st century
Edited by Ippei Yamazawa
Globalization and the Asia Pacific Economy
Edited by Kyung Tae Lee
The New Economy in East Asia and the Pacific
Edited by Peter Drysdale
Competition Policy in East Asia
Edited by Erlinda Medalla
Reshaping the Asia Pacific Economic Order
Edited by Hadi Soesastro and Christopher Findlay
Challenges to the Global Trading System
Adjustment to globalisation in the Asia-Pacific region
Edited by Peter A. Petri and Sumner La Croix
Multinational Corporations and the Emerging Network Economy in Asia
and the Pacific

Edited by Juan J. Palacios
International Institutions and Asian Development
Edited by Shiro Armstrong and Vo Tri Thanh
International Institutions
and Asian Development
Edited by
Shiro Armstrong
and Vo Tri Thanh
First published 2011 by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
Simultaneously published in the USA and Canada by Routledge
270 Madison Avenue, New York, NY10016
Routledge is an imprint of the Taylor & Francis Group, an informa business
This edition published in the Taylor & Francis e-Library, 2011.
To purchase your own copy of this or any of Taylor & Francis or Routledge’s
collection of thousands of eBooks please go to www.eBookstore.tandf.co.uk.
© 2011 Editorial selection and matter, Shiro Armstrong and Vo Tri Thanh;
individual chapters, the contributors
The right of Shiro Armstrong and Vo Tri Thanh to be identified as editors of this
work has been asserted by them in accordance with the Copyright, Designs and
Patent Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced or utilised
in any form or by any electronic, mechanical, or other means, now known or
hereafter invented, including photocopying and recording, or in any information
storage or retrieval system, without permission in writing from the publishers.
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging in Publication Data
International institutions and Asian development / edited by Shiro Armstrong and
Vo Tri Thanh.
p. cm. -- (Pacific trade and development conference series)
Drawn from papers presented to the 32nd Pacific Trade and Development
conference in Hanoi in 2007.
1. Asia--Commerce--Congresses. 2. Pacific Area--Commerce--Congresses. 3.
International agencies--Asia--Congresses. 4. International agencies--Pacific
Area--Congresses. 5. World Trade Organization--Congresses. 6. World Bank--
Congresses. 7. General Agreement on Tariffs and Trade (Organization)--Congresses.
I. Armstrong, Shiro. II. Võ, Trí Thành. III. Pacific Trade and Development
Conference (32nd : 2007 : Hanoi, Vietnam)
HF3751.7.I57 2011
338.95--dc22
2010029523
ISBN 0-203-83284-1 Master e-book ISBN

ISBN 978-0-415-49754-1
eISBN 978-0-203-83284-4
Contents
List of figures vii
List of tables ix
List of boxes x
List of abbreviations xi
List of contributors xiii
Preface xv
Part I. Issues and background 1
1 Overview and issues 2
Shiro Armstrong
2 International public goods 15
Richard N. Cooper
3 Making the international system work for the platinum age of Asian
growth 25
Ross Garnaut
Part II. Institutions and their impact 49
4 Effects of GATT/WTO on Asia’s trade performance 50
Will Martin, Kym Anderson and Cong S. Pham
5 The IMF and East Asia: the legacy of the crisis and actions for the
future 74
Shinji Takagi
v
vi Contents
6 The World Bank in the East Asia and Pacific region: past performance
and future directions 97
Amar Bhattacharya
7 The evolution of the World Bank and its implications for the Asian
Development Bank 111
David Vines
Part III. Country experiences 123
8 China’s foreign trade, WTO accession and institutional quality 124
Miaojie Yu
9 Vietnam one year after WTO accession: a review of existing studies and
a preliminary assessment 147
Doan Hong Quang and Vo Tri Thanh
Part IV. Regional arrangements 181
10 APEC: origins, rationale, evolution, achievements and potential 182
Andrew Elek and Hadi Soesastro
11 Regional and international cooperation architecture as public goods 208
Peter Drysdale and Shiro Armstrong

Index 212
Figures
3.1 China and major countries’ shares (per cent) in the world economy,
1300–2030 27
4.1 Nominal rates of assistance (per cent) to agricultural (ag) and non-
agricultural (nonag) tradables, and relative rate of assistance, China,
1981–2005 65
4.2 Nominal rate of assistance (NRA) to agriculture and real GDP per capita 66
5.1 Monthly cumulative exchange-rate changes, June 1997 – June 1998 86
6.1 World Bank lending to East Asia, 1987–2007 100
6.2 Trends in World Bank project performance, 1990–2005 (partial data
for 2005) 103
6.3 World Bank project performance by region, 1990–2005 (partial data
for 2005) 103
6.4 Trends in investment and adjustment lending (volume of lending
commitment) by the World Bank, FY1980–2004 105
6.5 Regional composition of adjustment lending by the World Bank,
FY1980–2004: (a) by number of operations; (b) by volume 105
6.6 Average Operations Evaluation Unit (OED; World Bank) ratings of
quality of World Bank adjustment lending, FY1980–2003, weighted by
operation 106

6.7 Comparison of Operations Evaluation Unit (OEU; World Bank)
ratings of quality at exit of World Bank adjustment and investment
lending, FY1990–2003 107
vii
viii Figures
6.8 Trends in the number of conditions applied to World Bank adjustment
lending and credit, FY1980–2004 108
8.1 China’s foreign trade, 1981–2006 126
8.2 China: average tariffs, 1982–2002 127
8.3 China: unweighted average tariffs on agricultural goods, 2001–07 127
8.4 The Kaplan–Meier survival function, stratified by regime type 129
8.5 Indices of China’s institutional quality from the International Country
Risk Guide (ICRG), and an overall quality index 130
8.6 China’s institutional quality as reported by the ‘Economic Freedom of
the World’ project 132
8.7 Indices of China’s institutional quality 133
9.1 FDI in Vietnam: commitments and realization, 1988–2007 150
9.2 The trade deficit and the share in total exports of the domestic sector in
Vietnam, 2001–07 153
9.3 Tariff revenue and its share of total budget revenue in Vietnam,
1996–2007 155
Tables
3.1 China in the world economy, AD 1300–2030 28
4.1 Dates selected Asia Pacific economies joined the multilateral trading
system 51
4.2 Looking for a ‘productivity’ indicator of the trade rounds 53
4.3 Statistically significant impacts (per cent) of GATT/WTO on trade 56
4.4 The impact of GATT/WTO on trade of PAFTAD economies,
1950–2000 59
4.5 Potential agricultural protection in the absence of WTO commitments,
China, 2030 69
4.6 Estimated welfare impacts of reforms from different levels of
agricultural protection in China (welfare measure in 2004 US levels) 69
5.1 Selected IMF financing arrangements in East Asia, 1980–2007 76
5.2 GDP growth (per cent per year) in selected Asian economies, 1996–2000 78
5.3 Fiscal balances (per cent of GDP) under IMF programs 79
5.4 Official financing (US$ billion) under IMF programs 79
5.5 Major structural conditionality measures 81
5.6 Real GDP growth (per cent per year) under IMF programs 84

5.7 Current-account balances [US$ billion (per cent of GDP)] in crisis-
affected economies, 1996–2000 85
ix