Financial Safety Nets in Asia: Genesis, Evolution, Adequacy, and Way Forward
Financial safety nets in Asia have come a long way since the Asian Financial Crisis (AFC) of 1997/98. Not wanting to rely solely on the International Monetary Fund (IMF) again, the Chiang Mai Initiative (CMI) was created in 2000. When the CMI also proved inadequate following the Global Financial Crisis (GFC), it was first multilateralized (CMIM), and then doubled in size to US$240 billion, while the IMF de-linked portion was increased to 30% of the available country quotas. A surveillance unit, the Association of Southeast Asian Nations (ASEAN)+3 Macroeconomic Research Office (AMRO), was set-up in 2011. These are impressive developments, but are they enough to make the CMIM workable? Without clear and rapid-response procedures to handle a fast-developing financial emergency, we argue it is unlikely that the CMIM will be used even as a complement to the IMF. To serve as a stand-alone option, however, its size or the IMF de-linked portion of funds needs to be further increased, as does its membership to add diversity. Only if AMRO can develop into an independent and credible surveillance authority, would it then perhaps be in a position to lead the next rescue.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Postal: Crawford Building, Lennox Crossing, Building #132, Canberra ACT 2601|
Phone: +61 2 6125 4705
Fax: +61 2 6125 5448
Web page: https://crawford.anu.edu.au/acde/publications/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Masahiro Kawai, 2010.
"Reform of the International Financial Architecture: An Asian Perspective,"
- Masahiro Kawai, 2010. "Reform Of The International Financial Architecture: An Asian Perspective," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 55(01), pages 207-242.
- Kawai, Masahiro, 2009. "Reform of the International Financial Architecture: An Asian Perspective," ADBI Working Papers 167, Asian Development Bank Institute.
- Iwan J. Azis, 2012. "Asian Regional Financial Safety Nets? Don't Hold Your Breath," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 8(3), pages 321-340, August.
- Lamberte, Mario & Morgan , Peter J., 2012.
"Regional and Global Monetary Cooperation,"
ADBI Working Papers
346, Asian Development Bank Institute.
- C. Randall Henning, 2011. "Coordinating Regional and Multilateral Financial Institutions," Working Paper Series WP11-9, Peterson Institute for International Economics.
When requesting a correction, please mention this item's handle: RePEc:pas:papers:2012-17. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sandra Zec)
If references are entirely missing, you can add them using this form.