Policy Lessons for Emerging Markets

The global economy is on a path to recovery following the financial crisis of 2007-2009. However, growth has been geographically uneven. The United States faces a gloomy fiscal outlook, while a few struggling economies in Europe threaten the stability of the whole continent. In contrast, emerging countries in Asia are operating at close to full capacity. They are experiencing unprecedented growth and are projected to contribute one-quarter of the world GDP by 2020. What lessons can we learn from the emerging markets in Asia, and will their growth last? As policymakers sort out the lessons learned from the global financial crisis, what steps can emerging markets take to continue developing their financial systems, as well as safeguard themselves from domestic and external shocks? What role can the G-20 play in fostering a more inclusive approach to international economic cooperation?

On June 6, Brookings and the Asian Development Bank Institute (ADBI) hosted a discussion with Kemal Derviş, vice president and director, Global Economy and Development at Brookings; Masahiro Kawai, dean and CEO, Asian Development Bank Institute; and Donald Kohn, senior fellow in Economic Studies at Brookings, to delve into these issues. Brookings Senior Fellow Domenico Lombardi moderated the discussion, which drew on the latest ADBI and Brookings collaborative research, including: Asia and Policymaking for the Global Economy (Brookings, 2011), edited by Kemal Derviş, Masahiro Kawai, and Domenico Lombardi; and Financial Market Regulation and Reforms in Emerging Markets (Brookings, 2011), edited by Masahiro Kawai and Eswar Prasad.

After the panel discussion, the panelists took audience questions.