It's not surprising that prickly issues are avoided for fear of arousing tension. What could be pricklier than demanding that neighboring countries reform banking systems, stamp out corruption or change the way they finance their economies? All of this has made economic integration a "third rail" of coordination in Asia.
Transparency long has been a dirty word in Asia. The opacity that reigns in Asia has its roots in Japan's economic model, the blueprint followed by many in Asia. Watching Japan emerge from the ashes of World War II to become an economic superpower was enough to convince Asia's leaders that Tokyo's strategy was for them. That meant active government planning, cheap money and close links between politicians, companies and financial institutions. It also meant shunning outside influence.
Then there are the big-picture questions today's economic policy makers aren't asking. One is how to bring into the fold Japan, South Korea and China. After all, what good is a common-currency zone if a region's most influential economies aren't involved? An argument can be made that Europe's biggest mistake was going ahead with the euro without the UK. The UK, after all, is a G7 nation.
While academics and business-people want an Asian monetary unit, politicians may find disincentives in past experiences. Take the Latin Monetary Union of 1865, which joined Belgium, Bulgaria, France, Greece, Italy and Switzerland. It unraveled when economic problems spread throughout the region. Later, the Scandinavian Monetary Union of 1873 collapsed in 1924. Asia wants to steer clear of such misfortunes.
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