The Asian model of export-led growth served it well in the post-war period but prolonged
sluggish growth of the developed economies following the global financial crisis together with
growing inequality and rising environmental problems point to the need for a new growth model.
The purpose of this book is to describe the challenges facing Asian economies in the
post-global financial crisis environment and to identify structural issues and policies that
can help guide Asian policymakers to expand the growth potential of domestic and regional
demand in coming years and thereby create a basis for balanced sustainable and inclusive
long-term growth. These issues and policies span a variety of dimensions including
macroeconomic policy (monetary fiscal and foreign currency management) real sector issues
(trade and industrial structure) infrastructure development labor market and social policy
financial sector reform and regulation and regional cooperation and architecture.Key
recommendations to achieve these goals include measures to: deepen social protection to support
social resilience increase infrastructure investment to create a seamless Asia enhance
productivity in the services sector establish a region-wide free trade agreement to encourage
intraregional trade in goods and services and investment through economies of scale and dynamic
efficiency of a larger market promote a shift to a low-carbon society and support green growth
and deepen and integrate financial markets to facilitate the recycling of Asia's high savings
for investment within the region.
