The CAREC Institute’s policy brief on “Comparison of Regional Economic Integration in Asia and Europe: Policy Implications for the CAREC Region” emerged from a joint workshop by the CAREC Institute and the Asian Development Bank Institute (ADBI) held in July 2019. The document argues that the economic integration can cause a permanent increase in the rate of economic growth. It continues the sentiment of the CRII working paper that, starting from a position of isolation, countries can achieve closer integration by increasing trade in goods or by increasing flows of ideas.
The paper provides descriptions of five levels of economic integration, underlines differences and similarities between Europe and Asia, and infers that lessons drawn in one region cannot be simply copied and implemented in another region under particular conditions or circumstances.
This policy brief compares the economic integration perspectives in Asia and Europe in order to provide policy recommendations for the CAREC region. The paper concludes that CAREC needs an effective and efficient system for policy coordination, for infrastructure development and infrastructure financing, also reduction of non-tariff measures (NTMs), and establishment of effective intra-regional energy trade.