ASEAN UPDATE:PRESS RELEASE

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ASEAN Update
Source:ASEAN
PRESS RELEASE

ADB SUPPORTS ASEAN SURVEILLANCE PROCESS 


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JAKARTA, Mar. 25 - ASEAN and the Asian Development Bank yesterday signed a
technical cooperation agreement for the establishment of the ASEAN regional
economic surveillance process. 

Under the agreement, the ADB will provide a grant amounting to
US$707,000.00, which is intended to finance technical training of ASEAN
Technical Support Unit (ASTSU) to be based in the ADB headquarters in Manila
over a period of two years. The ASTSU will provide support for the ASEAN
Surveillance Coordinating Unit (ASCU), which has been established in the
ASEAN Secretariat. ASEAN will provide a counterpart support equivalent to
about US$ 200,000. 

The ASEAN Finance Ministers agreed in October 1998 to establish an economic
surveillance process in response to the regional economic and financial
crisis. The surveillance process will keep track of macroeconomic indicators
and short-term capital flows as an early warning system to help prevent the
recurrence of the financial crisis. 

The ASEAN surveillance process aims to fill the gap between national and
global surveillance processes led by the International Monetary Fund. This
will be done by developing an institutional process that will permit a more
effective coordination of responses to evolving economic and financial
situations both within the region and outside. In particular, ASCU will be
responsible for preparing surveillance reports for the consideration by the
ASEAN Select Committee consisting of Deputies of Finance Ministers and
Central Banks, and by the ASEAN Finance Ministers.