Stronger regional cooperation would be an excellent start, starting with the closer integration of the Pan Beibu Gulf Economic Cooperation and ASEAN + 3, with a focus on developing infrastructure.
The region needs to shift focus from financial initiatives like the Asian Bond Markets Initiative and the Asian Bond Fund towards investment in regional capital for sustained and integrated development. This would encourage Asian investors, presently intermediating their savings outside the region, to invest them within the region. Integration based on investment in regional infrastructure will also lead outside investors moving into instruments denominated in regional currencies and decreased reliance on foreign currency borrowing.
East Asian think tanks have called for an Asian Investment Infrastructure Fund. The details have to be worked out but this is worth exploring in detail.
This is a practical step towards a Comprehensive Economic Partnership for East Asia.