Regional Connectivity and Economic Integration
CHAPTER 3
3 “We should encourage various economies to draw on each other’s strengths for mutually beneficial growth.” Hu Jintao, President, People’s Republic of China
Regional Connectivity and Economic Integration In view of the uncertain prospects for a speedy and strong recovery in the industrial countries and the need to unwind the global imbalances indicated in chapter 1, the economies of Asia and the Pacific will need to rely more on domestic and regional demand. Regional economic integration could enhance regional demand, driven by populous and rapidly growing economies, such as China and India, the dynamic domestic markets of which could also benefit their smaller and poorer neighbours. However, such a desirable outcome cannot be taken for granted. The rising tide of development opportunities will not lift all boats if these are separated by water locks. These obstructions can take the form, for example, of restrictive non-tariff measures, complicated and time-consuming customs procedures, cross-country differences in legal and regulatory regimes and poor transport infrastructure. As a result, the enormous opportunities generated by the more dynamic economic growth centres may stop at their national borders.
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