Regional Cooperation for Asian Recovery and Sustained Growth in the 21st Century: East Asian Vision Group Report

Purpose and Context
The report sets out a regional vision for economic recovery and sustained growth in East Asia following the shocks of the late 1990s. It responds to the Asian financial crisis by arguing that individual national measures alone are insufficient and that deeper, coordinated regional cooperation can strengthen resilience, restore confidence, and support long-term development. Contributions from Gloria Macapagal Arroyo and other members of the East Asian Vision Group frame the report as both a practical policy agenda and a strategic blueprint for the 21st century.
The authors situate their recommendations within a broader shift toward greater economic interdependence in the region, noting the increasing importance of intra‑regional trade, investment, and production networks. The report treats recovery as the near-term priority but emphasizes reforms and institutions designed to sustain inclusive growth over decades rather than merely manage episodic crises.

Core Analysis and Principles
The analysis links the crisis to weaknesses in financial systems, inadequate policy coordination, and structural rigidities that amplified contagion. The report stresses that macroeconomic stability and sound financial regulation must be complemented by measures to deepen markets, diversify finance, and enhance transparency. It also highlights social vulnerabilities exposed by the crisis, arguing that growth strategies must protect and invest in human capital to be politically and economically sustainable.
At its heart are principles of open but managed integration, regional solidarity, and respect for national circumstances within cooperative frameworks. The report articulates a balance between market liberalization and prudent regulation, advocating for institutions that promote information sharing, early warning, and mutual support without forcing uniform policy prescriptions.

Key Recommendations
On financial cooperation, the report proposes strengthened regional surveillance mechanisms, information exchange, and contingency financing arrangements to reduce reliance on emergency ad hoc measures. It advocates steps toward regional liquidity support, development of local currency bond markets, and coordination of regulatory standards to mitigate cross-border risks. The goal is to create institutional buffers that can act more quickly and with regional legitimacy during stress episodes.
For trade and investment, the report recommends deeper trade liberalization, efforts to reduce non‑tariff barriers, and investments in cross-border infrastructure and connectivity. Emphasis is placed on facilitating supply chains, encouraging foreign direct investment that complements regional development, and harmonizing rules to lower transaction costs. Human resource development, technology diffusion, and policies to foster small and medium enterprises are highlighted as essential to making growth broadly inclusive.
Social protection and governance receive equal attention, with calls for targeted safety nets, labor market policies that ease adjustment, and governance reforms to improve transparency and accountability. The report links these measures to political stability and long-term competitiveness, arguing that social cohesion is a necessary foundation for sustained growth.

Implementation Strategy
The report recommends an incremental, pragmatic approach to cooperation, building confidence through pilot initiatives and voluntary mechanisms that can be gradually institutionalized. It envisions ASEAN+3 and other regional fora as platforms for policy dialogue, supported by multilateral development banks, national agencies, and private-sector partnerships. Capacity building and knowledge sharing are proposed as central tools to level up regulatory and administrative capabilities across countries.
Rather than prescribing a single institutional model, the report favors modular arrangements that can evolve: joint surveillance units, regional swap lines, coordinated infrastructure planning, and collaborative programs in education and technology. Emphasis is placed on ownership by regional actors and on complementarity with global institutions.

Legacy and Relevance
The report helped shape subsequent regional initiatives that aimed to reduce crisis vulnerability and deepen cooperation, contributing to the policy discourse that produced mechanisms such as regional swap arrangements and expanded ASEAN+3 financial cooperation. Its mix of institutional recommendations and practical policy proposals remains relevant for contemporary challenges, including pandemic recovery, supply-chain resilience, and climate adaptation.
The enduring message is that sustainable prosperity in East Asia rests on combining economic openness with robust regional institutions, targeted social policies, and cooperative problem solving. The report's vision continues to inform policymakers seeking to balance integration with stability and equitable growth across diverse economies.