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Testing times in the first year of the coronavirus disease (COVID-) pandemic continued through , restricting life
and livelihoods in Asia and the Pacific. While in some ways economic recovery has exceeded expectations, especially
for merchandise trade and cross-border investment, its uneven pace amid varying progress of vaccine rollouts and the
constant threat from virus mutations tempers prospects. Moreover, many hard-won gains in reducing poverty are still lost.
This double-edged reality gives greater reason to focus on the continuing achievements and potential of regional
economic integration and cooperation to boost inclusive economic growth. Another year into the pandemic, the Asian
Economic Integration Report (AEIR) describes a region that has more experience in tackling pandemic hardships,
better data showing positive integration trends, and greater confidence in the power of cooperation to address shared
concerns. Regional initiatives are navigating the health crisis and significant issues like climate change, while holding
course for promoting inclusive economic growth through partnerships in trade, investment, finance, movement of
people, and the benefits of digitalization. The updated Asia-Pacific Regional Cooperation and Integration Index also
shows continued positive trends of regional cooperation e‰orts, including in areas of new technology and digital
connectivity and environmental sustainability.
The report’s theme chapter explores the implications for developing Asia from the acceleration of digital services
during the pandemic, focusing on services delivered across borders and the promise of regional cooperation to boost
participation in digital services trade and spread its benefits evenly. Mobility restrictions and physical distancing policies
have jolted firms into leveraging digital technologies in ways that arguably are bringing more and faster changes to
economies in Asia and the Pacific than other regions, and intensifying Asia’s first-mover advantage in such sectors as
business processing and outsourcing. With this, the cost of services trade is falling, opening the window of opportunity
for disadvantaged groups to access a‰ordable new services delivered digitally.
To maximize the economic gains from digital services trade, economies need to make their people better equipped with
digital skills and knowledge, expand information and communication technology infrastructure, and nurture enabling
environments through policy and regulatory reforms. Regional cooperation can bring together national e‰orts to reduce
barriers to digital services trade by harmonizing rules and standards—with free trade agreements o‰ering pivotal support—
while strengthening consumer protection and cybersecurity, closing digital divides, and facilitating data flows.
An encouraging sign amid global economic slowdown is regional trade linkages and value chains holding strong, buoyed
in part by the early recovery of the People’s Republic of China and deepening industrial interlinkages in high and
medium technology sectors.
Tourism, so vital for many economies, remains challenging amid the dearth of arrivals. E‰ective worldwide vaccination
campaigns will be key to gradual reopening and tourism recovery. Health and safety protocols such as cross-border
travel requirements will need to intensify to manage tourism flows safely, while regional cooperation is also a priority to
ensure secure reopening of travel routes.
asian-economic-integration-report-2022.pdf
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