Emerging Asian countries wish more financial distance
At the occasion of the annual meeting of ADB Asian Development Bank in Manila some measures were concluded in order to separate emerging Asian countries from industrialised countries influence
One of these measures is the stocking up of the crisis fund of 13 members of the SEA countries, including China, Japan and South Korea from USD 120 to USD 240 billion and in order to assist smaller economies to resist against economic shocks such as the EUR crisis, a lack of growth in America or an upsurge of oil prices. Especially Japan is considering this step as a preliminary action to create an Asian Currency Fund. A central plan is also to recall financial reserves now invested outside of the region to repatriate to the Asian region.
China, India and the ASEAN countries dispose according to the IMF International Monetary Fund of accumulated USD 3.8 trillion of currency reserves and the majority of these funds are invested in liquid, low interest bonds in highly industrialised countries. It has to be seen that the export share of emerging Asian countries to the Euro Area has decreased in the last decade from 33 to 24 % whereas the share of the inter-regional trade increased from 36 to 44 %. If this process is to continue in the next several years this will lead to less Asian capital exports or to changes of their investment. Asian emerging countries will invest in the next 20 year around USD 170 trillion, needing the allocation of capital and solid banks (including their regulation). ADB is calculating that bank savings in emerging Asian countries will increase four times from USD 53 trillion in 2010 up to 2030 and the stock exchange capitalisation of the region will increase also four times to USD 42 trillion up to 2030 and the bond market will grow eight times to USD 17 trillion.
These figures reflect the growing power of emergiong Asian countries and the gradual shift of financial power from industrial countries to Asian countries.