Regional: Research on Economic Resilience

Sovereign Project | 55256-002

The proposed TA will conduct research studies to understand how economies can better achieve economic resilience. Building on the analytical framework of Park, Ramayandi, and Shin (2015), it will explore the determinants of economic resilience at the country level and identify those factors that have the biggest role in resilience in the face of shocks. It will uncover why some economies are more resilient than others. It is also important to understand if the determinants of resilience differ for various types of shocks. For instance, do they differ for financial shocks, real sector shocks, and pandemics? In addition, there are major shocks that affect many developing member countries (DMCs) emanating from natural disasters, especially those due to climate change, and the resilience of economies is expected to vary for such type of shocks. It is therefore necessary to include an analysis of these shocks under the TA.

Project Details

  • Project Officer
    Park, Donghyun
    Economic Research and Regional Cooperation Department
    Request for information
  • Country/Economy
    Regional
  • Sector
    • Finance
Project Name Research on Economic Resilience
Project Number 55256-002
Country / Economy Regional
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 6964-REG: Research on Economic Resilience
Technical Assistance Special Fund US$ 120,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Private sector development
Sector / Subsector

Energy / Energy sector development and institutional reform

Finance / Finance sector development

Health / Health sector development and reform

Gender Equity and Mainstreaming Some gender elements
Description The proposed TA will conduct research studies to understand how economies can better achieve economic resilience. Building on the analytical framework of Park, Ramayandi, and Shin (2015), it will explore the determinants of economic resilience at the country level and identify those factors that have the biggest role in resilience in the face of shocks. It will uncover why some economies are more resilient than others. It is also important to understand if the determinants of resilience differ for various types of shocks. For instance, do they differ for financial shocks, real sector shocks, and pandemics? In addition, there are major shocks that affect many developing member countries (DMCs) emanating from natural disasters, especially those due to climate change, and the resilience of economies is expected to vary for such type of shocks. It is therefore necessary to include an analysis of these shocks under the TA. At the firm level, there is a need to examine why some businesses are able to withstand shocks better than others, and why some firms even thrive during shocks while others struggle to keep afloat. There are also economic shocks that have occurred due to dependence on foreign sources for supply, and this particularly applies to energy. For example, the Russian invasion of Ukraine adversely affected energy supplies, thus raising the costs of imported energy and triggering inflationary pressures. The TA will also include an analysis of the key drivers of energy efficiency and renewable energy investment, which can help reduce vulnerability to shocks from reliance to external sources. Overall, government policies have a key role to play in building resilience against shocks,. There is a need to identify concrete macroeconomic policies, financial-sector policies, and structural policies that governments can put in to place to boost resilience.
Project Rationale and Linkage to Country/Regional Strategy

Economic resilience consists of three dimensions(1) the ability to recover quickly from a shock, (2) the ability to withstand a shock, and (3) the ability to avoid the shock altogether. The coronavirus disease (COVID-19) pandemic highlighted the importance of economic resilience, especially the first two dimensions, which are the focus of this study. The two are closely related since economies that are hit harder by a shock tend to bounce back more slowly. The third dimension also matters but many shocks are impossible to predict or avoide.g. COVID-19 and natural disasters. Even financial crises are often difficult to foresee.

Although a lot of economic research has centered on early warning systems and preventing shocks, a more fruitful avenue of research may look instead at withstanding and recovering from a shock. In this context, some economies have recovered relatively quickly from COVID-19 while others are still struggling to find their feet. In particular, advanced economies have shown greater resilience than developing economies. Even among developing economies, some have been much more resilient than others. Lack of economic resilience is more than a passing interest because it may inflict long-lasting economic and social damage.

Impact

Improved resilience of ADB developing member countries (DMCs) to economic shocks

Project Outcome
Description of Outcome

Knowledge and capacity for developing economic resilience in DMCs strengthened

Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. Disseminated research papers on: (i) factors that determine the severity of shocks and the recovery from shocks; (ii) country cases that demonstrate successful resilience episodes; (iii) firm-level economic resilience; and (iv) drivers of renewable energy investment that promote resilience by reducing dependence on foreign sources.

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Regional
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Park, Donghyun
Responsible ADB Department Economic Research and Regional Cooperation Department
Responsible ADB Division Office of the Chief Economist, ERD
Executing Agencies
Asian Development Bank
Timetable
Concept Clearance -
Fact Finding 08 Sep 2022 to 08 Sep 2022
MRM -
Approval 28 Sep 2022
Last Review Mission -
Last PDS Update 30 Sep 2022

TA 6964-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Sep 2022 - 28 Sep 2022 31 Mar 2024 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
120,000.00 0.00 0.00 0.00 0.00 0.00 120,000.00 12 Jan 2023 0.00

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

None currently available.


Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.


Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

No tenders for this project were found.


Contracts Awarded

No contracts awarded for this project were found


Procurement Plan

None currently available.