The Comprehensive Asia Development Plan (CADP) 3.0: Towards an Integrated, Innovative, Inclusive, and Sustainable Economy

The coronavirus disease (COVID-19) pandemic has caused trade disruptions; a drop in foreign direct investment; and scarring effects on poverty, education, and women in many nations. However, it has also had beneficial features. Factory Asia has continued to produce and export during the pandemic, in contrast with North America and Europe. COVID-19 has boosted digitalisation, notably in information and communication technology (ICT). The adoption of ICT has boosted economic growth. Maintaining the competitiveness of international production networks and utilising digitalisation are essential to the region’s future post-COVID-19. Based on this understanding, the Economic Research Institute for ASEAN and East Asia (ERIA) has developed the Comprehensive Asia Development Plan 3.0 (CADP 3.0). Since the previous version (CADP 2.0) in 2015, nearly 7 years have passed. CADP 3.0 addresses the above-mentioned urgent concerns and discusses economic growth and social problem-solving in the region from the viewpoints of (i) integration, (ii) innovation, (iii) inclusiveness, and (iv) sustainability. CADP 3.0 comprises 18 original chapters on the four viewpoints and digitalisation. First, CADP 3.0 claims that integration is at the core of development strategies. The Association of Southeast Asian Nations (ASEAN) and developing East Asia could use three forms of the international division of labour (the first to the third unbundlings) simultaneously. To stimulate economic growth, the region should adhere to globalisation. Second, CADP 3.0 asserts that digital technology has transformed the nature of innovation. ASEAN and East Asia must move from intensive research and development (R&D) to technology deployment. Combining incremental and disruptive innovation could revive creative manufacturing. Third, CADP 3.0 declares that inclusiveness in its three dimensions – geographical, industrial, and social – is a core value for ASEAN and East Asia. Before resorting to income/welfare redistribution, the region should employ economic forces to achieve inclusiveness wherever practicable. Last, CADP 3.0 affirms that sustainability must be realised through economic expansion and improved well-being. Decarbonisation, resource management, and disaster management are not just long-term objectives but also present challenges. The use of new technology will facilitate international cooperation in establishing a circular economy.