What Motivates Regional Financial Cooperation in East Asia Today?

Regional financial cooperation in East Asia is proceeding with unprecedented intensity. Latest developments include creation by the regional central bankers group of two Asian bond funds and the launching of an Asian Bond Market Initiative by the finance ministers of ASEAN + 3 (China, Japan, South Korea). Some observers continue to attribute such cooperation to sharpened antagonism between East Asia and the West since the Asian financial crisis of 1997-98. But this view overlooks a key internal driver: China's remarkable shift toward a more proactive stance toward regional cooperation. Current 2005 East Asian financial cooperation is motivated by factors that differ considerably from those observed in the immediate aftermath of the Asian financial crisis and with implications that extend beyond East Asia.

Jennifer Amyx is a 2004-2005 Shorenstein Fellow at the Asia-Pacific Research Center. She is the author of Japan's Financial Crisis: Institutional Rigidity and Reluctant Change (2004), articles on East Asian financial cooperation, and a book-in-progress on the latter topic. Since earning a Stanford PhD in political science in 1998 she has held fellowships at Australian National University and been a visiting scholar at several Japanese financial policy and research institutions including the Bank of Japan.