Office of Regional Economic Integration

Support to the ASEAN Surveillance Process

In October 1998 the ASEAN Finance Ministers signed a Terms of Understanding that established the ASEAN Surveillance Process and requested ADB support for it. Based on the principles of peer review and mutual interest among ASEAN member countries, the overall purpose of the ASEAN Surveillance Process is to strengthen policy-making capacity within the ASEAN grouping. In addition to the usual monitoring of exchange rates and macroeconomic aggregates, the ASEAN Surveillance Process monitors sectoral and social policies. It also includes provisions for capacity building, institutional strengthening, and sharing of information. The ASEAN Finance Ministers meet twice a year for policy coordination under the ASEAN Surveillance Process.

The ASEAN Surveillance Process is the first concrete attempt by a group of developing countries to exchange information on economic developments and policies, and to consider individual and collective responses to events that could negatively impact subregional economic well-being. The Bank has therefore programmed a number of regional technical assistance projects to be implemented by OREI in support of the ASEAN Surveillance Process. These projects will provide inputs to the ASEAN Surveillance Reports, conduct studies on specific topics, and strengthen the capacity of ASEAN officials and institutions on surveillance-related matters. Several of these technical assistance projects are already being implemented, one with cofinancing from the Australian Agency for International Development (AusAID).