Long-Term Issues for Fiscal Sustainability in Emerging Asia

21 Pages Posted: 20 Aug 2013

Date Written: August 18, 2013


The aftermath of the global financial crisis of 2007-08 underlined the importance of maintaining fiscal space and fiscal sustainability. Even though many Asian economies implemented fiscal stimulus policies during the crisis period, their fiscal conditions generally improved rapidly thereafter, and their overall government debt positions, aside from that of Japan, appear strong. Nonetheless, there are a number of reasons to believe that conditions in emerging Asian economies will not always be so supportive. The first objective of this paper is to identify long-term issues of fiscal sustainability risk for emerging Asian economies. The second objective is to recommend policies to reduce these risks to sustainability.

Keywords: fiscal space, fiscal sustainability, emerging asia, emerging asian economies, global financial crisis, fiscal stimulus policies, government debt

JEL Classification: H2, H51, H54, H55, H62, H63, J11

Suggested Citation

Kawai, Masahiro and Morgan, Peter J., Long-Term Issues for Fiscal Sustainability in Emerging Asia (August 18, 2013). ADBI Working Paper 432, Available at SSRN: https://ssrn.com/abstract=2312215 or http://dx.doi.org/10.2139/ssrn.2312215

Masahiro Kawai (Contact Author)

Asian Development Bank Institute ( email )

Kasumigaseki Building 8F 3-2-5
Kasumigaseki Chiyoda-ku
Tokyo, 100-6008

Peter J. Morgan

ADBI ( email )

Kasumigaseki Building 8F 3-2-5
Kasumigaseki, Chiyoda-ku
Tokyo, 100-6008

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