The Boao Forum for Asia (BFA)
released its first annual report, Economic Integration in Asia, on
Friday afternoon, concluding that Asia has become an increasingly
important player in the world economy, and that market forces are
driving the region's economic integration.
"This report clearly shows the remarkable contribution Asia is
making to global integration," Bert Hofman, chief economist from
the World Bank's Beijing Office, said on behalf of Jemal-ud-din
Kassum, East Asia and Pacific vice president of the World Bank.
"The fact that trade and investment are running ahead of formal
agreements in this area is a tribute to the private sector as well
as to organizations such as the BFA," he added.
The BFA, currently meeting in Boao on the island province of Hainan,
produced the report through ongoing, close collaboration with the
World Bank, BFA Secretary-General Long Yongtu said at a press
conference held at its launch.
"Trade in the region appears to be growing more rapidly than
that among partners in regional trade agreements," said Long, also
noting that regional trade agreements seem to be more effective
under a multilateral framework.
In the current context of economic globalization, foreign direct
investment seems to have assumed a larger role in countries'
development efforts. Now it's the turn of governments to support
businesses in order to obtain the maximum benefits from this new
opportunity, he said.
As a result of increasing market demand and active foreign trade
investment, intra-regional trade has recorded marked rises, which
in turn have given tremendous impetus to Asia's economic
integration, Long said.
He said that considering the cultural diversity of Asia, there
are political, religious and ideological obstacles to economic
integration; communication and mutual understanding are the best
way to overcome them, and the BFA, a leading forum in Asia for
political, business and academic leaders to exchange views, has an
important role to play in this.
This year's report identifies three factors driving trade
integration in Asia: a change in trade profiles, broad based
competitive gains and rapid growth of foreign direct
investment.
The interdependence of China and other Asian economies has grown
since the mid-1980s, when China emerged as a major partner in world
trade, the report said.
Former Philippine President and BFA Chairman Fidel V. Ramos
observed that the accompanying change in China's trade structure
seems to provide a partial explanation for rapid expansion in East
Asia's regional trade, and commented that "China's macroeconomic
policies have an increasingly important implication for the
region's economic outlook."
Long also announced that Thursday's BFA Board of Directors
Meeting agreed to set up a research institute, aimed at improving
administration and strengthening research into economics and
related fields.
The institute is to establish close relations with international
institutions on Asia's economic affairs, especially those from
Asia, for the purpose of resource sharing, he said.
(China.org.cn by staff reporter Shao Da, April 23, 2005)