Lessons of the European crisis for regional monetary and financial integration in East Asia

The debt crisis in several member states of the euro area has raised doubts on the viability of the European Economic and Monetary Union (EMU) and the future of the euro. While the launch of the euro in 1999 stirred a lot of interests in regional monetary integration and even monetary unification in various parts of the world, including East Asia, the current crisis has had the opposite effect, even raising expectations of a break-up of the euro area. Indeed, the crisis has highlighted the problems and tensions that will inevitably arise within a monetary union when imbalances build up and become unsustainable. This article discusses the causes of the current European crisis and the challenges that EMU countries face in solving it. Based on this analysis, it derives five lessons for regional financial and monetary cooperation and integration in East Asia.     

东亚共同体:路径、机制与挑战

基于东亚金融危机的体制性原因,东亚一体化提上了议事日程,应该说,这是区域合作的政治构想。然而,作为政治构想的东亚一体化是一种"经济增长型政治"的意图,它走出了一条与欧盟完全不同的路径。首先,在欧洲,以"欧洲人"为核心的欧洲主义成为地域统合的原动力,可是,东亚经济统合缺乏"欧洲人"那种主体性意识,这是一种地域结构性的差异。其次,东盟"10+3"模式是东亚共同体的推进机制,然而,与欧盟比较,东亚缺少一个既有共同政治基础、又有法律约束力的推进机构。再次,冷战从欧洲全面退却,但是,在东亚,"冷战"呈进攻态势,"亚洲主义"成为东亚一体化进程中难以跨越的障碍。最后,文章指出,应以自由贸易协定推进东亚机构建设,以机构推进东亚一体化进程,并推动东亚共同的经济政治制度建设。     

后金融危机时期中日韩货币合作研究

后金融危机时期,基于共同利益的需求,东亚货币一体化成为一个不可逆转的发展趋势。中日韩3国货币合作在东亚区域货币一体化过程中起着至关重要的作用。3国货币合作具有经济基础:3国经济力量雄厚,产业结构和资源互补性强,贸易增长迅速,汇率波动差异趋小,货币政策方向也渐趋一致。计算3国货币合作的OCA指数表明,与危机前相比,3国进行货币合作的成本已经有了明显改善,3国2011年的OCA指数与1995年欧洲各国与德国间的OCA指数相近,这表明与当初的欧盟相似,3国已具备进行深入货币合作的条件。人民币和日元的协调与合作对3国货币合作具有重要意义和现实基础,中国应谨慎而积极地分阶段推进人民币国际化进程。     

东亚货币合作经济基础的实证分析

随着经济全球化和区域化的发展,世界范围内的区域金融合作也深入开展起来。欧元的成功实践为东亚国家（地区）开展货币合作提供了良好的示范,最优货币区理论的提出及发展为东亚货币合作提供了理论指导。东亚国家货币合作的经济基础有了很大的提高,为进一步开展更深层次的合作提供了保证。东亚国家可以根据各自的不同情况,选择最优合作伙伴,逐步推进次区域货币合作,最后通过长期的努力建立欧盟那样的货币联盟。     

Lessons from the Asian financial crisis for the eurozone: a comparative analysis of the perilous politics of austerity in Asia and Europe

This paper comparatively examines diverse responses from three major actors in the global political economy (the state, civil society, international financial institutions) to the Asian financial crisis of 1997 and the current eurozone crisis. First, it analyses conditional lending policies of international financial institutions (IFIs) such as the International Monetary Fund toward countries in fiscal distress. It then critically examines how the lending policies engendered social tensions and conflicts as austerity measures such as cuts to social welfare programmes hit hard on the populace. Examining how the state and civil society in Asia reacted to and, as a result of contentious state–civil society interactions, altered the policies of IFIs, the paper draws lessons from the Asian financial crisis for the European Union and puts forwards alternative policy suggestions.     

The possibility of an Asian monetary union drawing from the EMU experience

This academic exercise evaluates the possibility of formation of a monetary union within East Asia, with the European Monetary Union (EMU) providing a referential framework against which lessons and comparisons are drawn. The benefits and drawbacks to Asia of adopting such a union are discussed, and their relative magnitude weighed against each other by employing the theory of the Optimum Currency Area (OCA). Although studies under the OCA framework have not yielded irrefutable or definitive results on the economic sustainability of an Asian monetary union, it is concurred that such a union is as economically viable as the EMU. The political sentiments towards monetary unification in East Asia are also examined, and though leaders remain generally unreceptive to such an undertaking, it is receiving serious consideration as cooperative monetary efforts accelerate and integrative initiatives deepen across Asia. Attention is also given to the existing monetary union between Singapore and Brunei (MUBS) as it commands relevance in our analysis due to its residence within Asia itself, and its smooth functioning despite economic disparities between its two members. A gradualist approach towards East Asian monetary unification, whereby smaller monetary unions are first formed to be eventually merged to make up an East Asian-wide monetary union is also discussed.     

东亚区域货币合作与我国的参与对策

由美国著名经济学家蒙代尔提出的最优货币区理论为区域货币一体化奠定了理论基础,而欧盟的实践使这一理论变成了现实。东亚金融危机的爆发,加快了东亚区域货币合作的进程。而作为已经加入WTO同时又是东亚最大发展中国家的中国,应该积极参与东亚区域货币合作,并针对这一趋势做出适当的对策选择。     

东亚货币合作的模式选择与中国的对策研究

货币合作是当今国际金融领域的热点议题。从已有的货币合作实践看,基于经济高度一体化的欧洲形成了单一货币形式,即欧元产生;相应的在拉美国家也出现了美元化趋势。而按照Mundell金融稳定性三岛的预言,作为世界经济发展重要一极的亚洲并没有出现单一的货币形式。在面对有缺陷的现行国际货币制度之下,东亚国家需要在现实的经济合作基础之上,选择合适的货币合作模式,推动东亚经济和货币一体化进程。这既是区域经济发展的需要,也是区域经济安全的需要。     

The euro,the enlarged EU and Asia

On January 1^st 2002, euro coins and notes were introduced in the twelve countries of the European Union. The successful introduction of the euro was the last stage of a long process, officially called the Economic and Monetary Union (emu). And this process cannot be understood correctly without placing it in the context of the even longer process of European Integration. This paper explains what the euro is. It looks back briefly at the post-war history of monetary integration in Europe. Then we focus on the emu and explain why and how the euro was successfully introduced. We discuss whether the eurozone is an Optimum Currency Area, whether and how that matters, and the costs and benefits of the euro. Finally, we touch upon the prospects of the new EU members adopting the euro, then discuss the implications of emu in particular and European Integration in general, for Asia.Sachi Suzuki and Tamon Asonuma have ably assisted me in finding and arranging the data. All remaining errors are of course mine.     

当前俄罗斯的东亚政策研究

苏联解体后,俄罗斯的外交政策从向西方“一边倒”转为东西方平衡的“双头鹰外交”,东亚在其整体外交格局中的地位上升.俄罗斯东亚战略的主要目标是要成为东亚大国,其政策主要受到两方面因素的驱动和影响：一是基于对国际和地区均势的追求,二是出于本国平衡发展的需要,以及对自身面临威胁的认知.中俄关系是俄罗斯东亚政策的重心,同时它也积极发展与东亚其他行为体的关系.俄罗斯与东亚的关系在过去十多年里稳步提升,但也面临着俄远东地区开发困难重重、融入东亚经济空间进展缓慢、国内意见分歧等诸多挑战.在世界战略重心东移的背景下,在当前因乌克兰危机而使俄与欧美的地缘政治冲突激化的情势下,俄罗斯将会进一步加强其整体外交政策中的东亚维度.     

Chinese outward direct investments in Europe and the control of the global value chain

This article will adopt a long-term perspective on the possible evolutions of the respective role of China and Europe in the global division of labour and in international trade and how it affects the flow of Chinese outward direct investments in Europe. The Chinese leadership has been pursuing an active industrial policy to enable its national champions to move up the value chain and challenge the European incumbents. In that context, Chinese authorities have been fostering strategic asset-seeking outward direct investments by Chinese firms in the European Union to capture technology and management know-how by taking over European enterprises weakened by the crisis. This new challenge affects very differently the various European Union member states according to their level of technological development and their role in the regional division of labour between the economic centre and the periphery of the European Union. This analysis will explain the evolution and distribution of Chinese outward direct investments in Europe and provide elements for a prospective analysis of this phenomenon.     

Sovereign Debt Crisis in Euroland: Root Causes and Implications for European Integration

This article considers the likely impact of the global crisis on the prospects for the European project. First, it considers the nature of the current crisis. It argues that it is comparable, in terms of its deep structural character, to the one in the 1930s. The crisis manifested itself first in the financial sector, but was caused by underlying problems of overaccumulation, which explains the succession of speculative booms and busts from the 1980s onward. The article then analyses how the financial crisis transmuted into the current sovereign debt crisis in Europe. It identifies a number of interdependent factors responsible for this: the bailouts of banks following the credit crisis; the stimulus programmes necessitated by the danger of a deep economic recession; the structural problems of the European Monetary Union leading to the accumulation of debt in the peripheral members; and finally the catalytic action of speculation in the financial markets. Finally, the article discusses responses to the debt crisis, outlining the contours of two alternatives (muddling through and Europeanisation), their implications, and some of the conditions for success. The conclusion is rather pessimistic: chances that an effective, timely and sustainable solution will be realised do not seem high.     

Comparative transformation. Experiences in East Europe and prospects in East Asia

This article1. retraces the origins of the revolutions in East Europe, set against the more retarding socio-political causalities in East Asia,2. benchmarks the sequence of economic transformation in East Europe against the limited and incomplete economic reforms in East Asia,3. sets postcommunist political developments in East Europe against scenarios for political change in East Asia, and4. compares the social crisis in East Europe with prospects for more stable social development in the Confucian cultures of East Asia.The article concludes with the need for negotiated democratic regime change in the remaining Communist dictatorships in East Asia.. While economic structures still require a sustained effort for systemic change towards genuine market economies, its social consequences are expected to be less dramatic than in Eastern Europe.     

The challenge of institution-building in Asia and its implications for Asia-Europe relations

  East Asia, including Northeast Asia and Southeast Asia, has developed tightly-linked production/distribution networks through globalizing corporate activities. The vertical chain of production in East Asia has been even more sophisticated than economic integration in East Europe or Latin America. However, the political environment of East Asia for trade and investment has been far from borderless. The integration effort at the policy level has been very much limited so far, due to the historical background as well as geopolitics surrounding East Asia. The Asian currency/financial crisis provided these countries a historical turning point. After the burst of the crisis, East Asians realized that they have to take care of themselves in their difficulties, not depending on outside forces. A natural choice for them was to step into the realm of regionalism. In 1998, Japan and Korea officially announced that they would discard the long-lasting GATT/WTO-only approach and adapt the multi-layered approach, including both regionalism and multilateralism. The ultimate goal of regionalism would be a region-wide integration including ASEAN+3. As a steppingstone, Japan signed the Japan-Singapore Economic Partnership Agreement (JSEPA) in January 2002. In a parallel move, the ASEAN and China Leaders announced in November 2001 the establishment of an ASEAN-China Free Trade Area (ACFTA) within 10 years. This article will follow up the most recent advancement of regional institutional building in East Asia with the emphasis on peculiar characteristics of economic integration in the region and discuss its implications for Asia-Europe relations. This paper is heavily drawn from Kimura (2002, 2003).     

Trade relations between Europe and East Asia

The Asia-Europe Meeting (ASEM) framework was created in 1996, with the primary purpose of strengthening economic, political and cultural relations among the 15 countries of the European Union and ten East Asian states. This paper examines the origins of these recent economic linkages, in a global and inter-regional context.¶The paper charts the principal elements of ASEMs economic pillar to date, assesses the influence of multilateral trading environments (notably the WTO) on the region-to-region dialogue and examines ASEMs impact on intra-regional economic developments, especially in the case of East Asia.¶The paper will focus in particular on the flagship projects of trade and investment facilitation, to discuss whether and to what extent ASEM itself can be seen to further cooperation and coordination in specific fields of activity.¶The final part of the paper aims to analyse the prospects for future economic relations between East Asia and Europe, in the wake of a devastating financial crisis in Asia, in the context of a continued war on terror which, since the Bali bombing has had an even more immediate impact on Asia, and in the changing global economic environment as regulated by the tenets of the WTO.     

欧洲主权债务危机的反思及其对东亚货币合作的启示

始于希腊波及欧洲多国的欧洲主权债务危机,不仅威胁欧元区的经济复苏,使欧元区的内在弊端暴露无遗,而且还引发人们对欧洲一体化进程和最优货币区理论的反思,为其他地区经济货币合作特别是东亚货币合作提供诸多启示。     

Rising to the Challenge: Europe’s Security Policy in East Asia amid US-China Rivalry

ABSTRACT

China’s growing power and assertiveness towards its smaller and weaker neighbours has been a wakeup call for the European Union and its member states which, as a result, have stepped up their involvement in East Asia. EU security policy in the region shows many elements of alignment with the United States, but also differences. In North East Asia, the EU has adopted harsh sanctions against North Korea but, contrary to the Trump administration which continues to seek regime change, has left the door open for dialogue. Moreover, the EU supports the process of trilateral cooperation among China, Japan and South Korea, while Washington has traditionally been lukewarm towards a process that excludes the US and risks being dominated by Beijing. The transatlantic allies also show differing approaches with regard to maritime disputes in the South China Sea. While EU security policy in East Asia is largely complementary to that of Washington, in some cases Europe tends – albeit inadvertently – to favour Beijing.     

Leadership, decision-making and governance in the EU and East Asia: crisis and post-crisis

The global financial crisis of the late 2000s has affected the EU and East Asia differently. The EU has seen its economic, political and social structures undermined by the problems derived from the global crisis and subsequent eurozone sovereign debt crisis. In contrast, East Asia has gone through the global crisis relatively unscathed and has seen its standing at the global level reinforced. As a result, there has been a reconfiguration of leadership, decision-making and governance structures in both regions. In the case of the EU, Germany has emerged as the clear leader of European efforts to solve regional economic problems. Meanwhile, intergovernmentalism has replaced supranationalism as the decision-making and even implementation procedure of choice. Differently, there is no single leader in East Asia. China has become one of the most important powers at the global level, but at the regional level, different countries have shaped East Asia’s response to the crisis. Concurrently, there has been some move towards increasing integration, even though intergovernmentalism still defines governance structures in the region. Thus, the global financial crisis of the late 2000s has helped to shape new leadership, decision-making and governance structures in both regions.     

European and Asian responses to the US-led ‘war on terror’

This article seeks to establish a context for the other contributions to this special issue. Using the lens of strategic culture, the article tries to explore how states from Europe and Asia have responded to the US-led ‘war on terror’. It argues that the nature of the threat from international terrorism requires states in Europe and Asia to develop a range of external and internal policy responses. Europe has been able to react to this changing strategic environment more successfully because of the pre-existing pattern of interstate cooperation as well as the organizational framework of the European Union. The United States has been more successful in imposing its counterterrorism priorities upon particular Asian states due to the absence of mature frameworks for international cooperation within the region.     

The EU’s Asia: renegotiating boundaries, renegotiating norms

The global financial crisis and the shift of economic strength to a rising Asia have ushered in European introspection and allusions to the decline of the European Union (EU). The EU’s ambitions to have a normative impact in the world have been called into question. The seven articles in this guest-edited issue explore processes of change relating to geopolitical definitions, regional actorness, interregionalism, and normative power within the framework of EU–Asia relations. This introduction contextualises the themes taken up in the different articles. It considers important divides in the recent history of Europe–Asia relations and outlines key transformations in the global environment, before critically reflecting on the significance of normative power for Europe.