The Changing Political Dynamics of East Asian Financial Cooperation: The Chiang Mai Initiative

Chey, Hyoung‐kyu

doi:10.1525/as.2009.49.3.450

Cited by 32 publications

(16 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The origins of the CMI have been well-documented (Amyx, 2004;Calder & Ye, 2004;Chey, 2009;Dent, 2008;Dieter, 2000;Dieter & Higgott, 2003;Hayashi, 2006;Henning, 2002;Katada, 2008;Lee, 2006Lee, , 2008. The Asian Financial Crisis demonstrated the inadequacy of the global financial institutions in addressing the needs of open and basically well-managed economies in dealing with large-scale, multidimensional currency and financial crises.…”

Section: Cmi: Development and Debatesmentioning

confidence: 99%

East Asian financial regionalism: why economic enhancements undermine political sustainability

Grimes

2015

Contemporary Politics

View full text Add to dashboard Cite

East Asian financial regionalism was born in response to the Asian Financial Crisis of 1997-1998. The centrepiece of financial regionalism was the Chiang Mai Initiative (CMI), an emergency liquidity mechanism created by the ASEAN+3. It embodied both a clear interpretation of what had gone wrong in 1997-1998 and an understanding of the need for institutions that would be politically viable despite Sino-Japanese rivalry. Enforcement under CMI relied on the 'IMF link' -release of funds would be predicated on crisis countries' initiating negotiations with the International Monetary Fund (IMF), as a means of reducing moral hazard, enforcing conditionality and diverting blame from the leading creditors, Japan and China. The global financial crisis of 2008-2010 and the eurozone crisis that followed have inspired important changes meant to address CMI's economic gaps, including accelerated adoption of 'CMI Multilateralization' (CMIM), the creation of a new surveillance unit (ASEAN+3 Macroeconomic Research Organization, or AMRO), and the establishment of a new precautionary line. Many observers have remarked that these developments weaken the IMF link, which had effectively subordinated CMI to the IMF. While the moves appear to demonstrate a more confident, autonomous regionalism and a relative devaluation of the US-dominated global financial institutions, this paper argues that in fact, the ASEAN+3 states have again unearthed the underlying politics of divided leadership and mutual suspicion. CMIM is now threatened by the renewed potential for internal divisions. Further complicating the picture, both China and Japan have recently established large bilateral swap lines outside of the CMIM framework with several of their ASEAN+3 partners, raising the question of whether CMIM is moving towards political irrelevance even as it has arrived at a high water mark in its institutional development.

show abstract

Section: Cmi: Development and Debatesmentioning

confidence: 99%

East Asian financial regionalism: why economic enhancements undermine political sustainability

Grimes

2015

Contemporary Politics

View full text Add to dashboard Cite

show abstract

“…The development of regional financial facilities or lines of support that could be activated during a crisis has been the major focus of regional financial cooperation (Amyx 2004(Amyx , 2008Chey 2009;Rajan 2008;Katada 2008). The plan to establish bilateral swap facilities, known as the Chiang Mai Initiative (CMI), was announced by the APT finance ministers in May 2000 and the ASEAN swap facility was increased to $1 billion later that year.…”

Section: Regional Financial Cooperationmentioning

confidence: 99%

Regional and multi-level governance: East Asian leadership after the global financial crisis

Hamilton‐Hart

2012

Asia Eur J

View full text Add to dashboard Cite

Although the economies of East Asia emerged from the global financial crisis of 2008 in comparatively strong positions, they remain structurally embedded within global markets. The degree of regional integration that has occurred within East Asia is thus predicated on the on-going interdependence with the economies of Europe and North America. Moves to advance East Asian regional cooperation in the wake of the crisis reflect this global interdependence, as well as intra-regional differences in interests and a lack of strong leadership within the region. Modest cooperation on an East Asian basis has continued since 2008 but the region is very far from realising a substantive regional governance model on economic and financial issues and does not appear to be pursuing a distinctive governance agenda. This article examines recent developments in East Asian regional cooperation, with a view to assessing the significance of current achievements and explaining the mixed and sometimes contradictory nature of initiatives for regional governance in East Asia.

show abstract

“…A brief review of the eurozone's sovereign debt problems of 2010-11 further strengthens that case. Calder and Ye 2004;Hayashi 2006;Lee 2006Lee , 2008Grimes 2006Grimes , 2009aKatada 2004;Chey 2009). While these authors approach CMI from a variety of perspectives, several common threads emerge.…”

Section: Please Scroll Down For Articlementioning

confidence: 99%

The future of regional liquidity arrangements in East Asia: lessons from the global financial crisis

Grimes

2011

The Pacific Review

View full text Add to dashboard Cite

The Changing Political Dynamics of East Asian Financial Cooperation: The Chiang Mai Initiative

Abstract: This paper analyzes the factors that have contributed to the development of the Chiang Mai Initiative, one of the prominent examples of recent East Asian financial cooperation, by comparing it with the failed 1997 proposal for an Asian Monetary Fund.

Cited by 32 publications

References 0 publications

East Asian financial regionalism: why economic enhancements undermine political sustainability

East Asian financial regionalism: why economic enhancements undermine political sustainability

Regional and multi-level governance: East Asian leadership after the global financial crisis

The future of regional liquidity arrangements in East Asia: lessons from the global financial crisis

Contact Info

Product

Resources

About