Annual Meeting

How countries sequence financial and capital account liberalization is critically related to the occurence of a capital account crisis that involves simultaneous banking and currency crises. the East Asian financial crisis demonstrated that a sound macroeconomic environment alone is no longer sufficient to prevent a capital account crisis. All the countries involved had undertaken financial liberalization in the context of global financial system. Thus, the appropriate sequencing of capital account and financial liberalization is an immediate issue facing the People's Republic of China (PRC) after joining the World Trade Organization.

The following major issues will be discussed:

• How does the financial service liberalization impact domestic financial markets and capital controls?
• What is the optimal sequence for financial liberalization?
• What is the relationship between capital account liberalization and exchange rate regimes?
• How will trade within Asia and between Asia and the global economy, be affected with the entry of the PRC in the World Trade Organization?
• What are the policy implications of the emerging PRC for developing more desirable regional trade cooperation?

Contact Us

For further information, contact Mr. K. Kojima, ADB Institute, tel: (81-3) 3593-5500, fax: (81-3) 3593-5500, email: kkojima@adbi.org.