Columbia International Affairs Online: Working Papers

CIAO DATE: 01/2010

How the Asia Pacific Can Drive the Global Recovery

Peter A. Petri

November 2009

East-West Center

Abstract

The transition to a new, sustained global growth path is still precarious and will require concerted policy actions by many countries. Leadership by the G-20 will be essential for coordinating the global effort. But due to the central importance of the Asia Pacific in the world economy, regional institutions such as ASEAN+3, ASEAN+6, and APEC could also play large roles in the next phase of the recovery. Interdependence in the Asia Pacific region is now often seen as a source of risk, but it also connects the most powerful technological, financial, and productive resources ever assembled in history. Asia Pacific institutions should not miss the opportunity to address the present crisis. By working together, Asia Pacific governments could send a powerful signal to markets that they intend to cooperate and will hold each other accountable for keeping growth on track.