‘It was no fluke that the ASEAN+3 region emerged unscathed from the 2008 crisis. Sound macroeconomic fundamentals, as well as sizable fiscal and financial-sector buffers, enabled policymakers to lead the region out of the crisis quickly by adopting expansionary measures to boost domestic demand.
‘A similar response is needed today. Although the COVID-19 crisis has exposed the vulnerabilities of global supply chains and the economies that depend on them, pursuing a strategy of insourcing or localizing production would be devastating for the global economy.
‘Instead, overcoming supply-chain weaknesses requires enhancing globalization and economic integration, diversifying sources of supply to build resilience, and reforming and strengthening multilateral institutions and multinational forums. These measures will help to ensure that when the next global shock occurs, governments will be equipped to cooperate effectively and resist the lure of protectionism. That would be the best outcome for the global economy, and ASEAN+3 in particular.’
Read here (Japan Times, Jan 3, 2021)
