be 1. 3 % per annum, which is half of what was registered during the period 2000 to 2008. the emerging economies, in general, and the asian region in particular, have emerged with stronger growth. several key factors have enabled this faster and stronger rebound. firstly, is the policy flexibility to implement the monetary and fiscal stimulus. strong fiscal positions and relatively low public debt levels have allowed many asian governments to implement larger fiscal stimulus measures. second, the financial sector in the region is in good shape, avoiding any disruption of credit flows to the private sector. the region has benefited from the decade long of financial reforms and development of the domestic financial infrastructure. the financial systems in asia have remained resilient throughout this global financial turmoil. this will be an important factor in sustaining the economic recovery to support domestic private sector economic activity when the fiscal measures are gradually withdrawn. third, households and the corporate sectors are not over - leveraged, and thus better positioned to sustain consumption and investment activity. fourth, increased intra - regional trade in asia has supported the recovery in regional trade activity. this has been reinforced by the strengthening of the domestic demand in the region. while domestic sources of growth have gained significance, trade will continue to be important but with a distinct change in the pattern of trade. trade among the emerging economies has already increased, with this trend being most evident among the emerging economies in asia. intra - regional trade in asia has already risen from 32 % of total exports in 1995 to an average of 50 % in 2008. rapid trade liberalisation across asia has improved market access. rising incomes in the asian region where more than half of the world population resides has generated a huge cumulative market. this increase in consumption demand has led to the development of an extensive modern retail sector across the region. supported by stronger economic fundamentals, emerging economies are expected to grow at higher rates over the next five years compared to the period prior to the crisis in 2000 to 2008. the imf projects that emerging economies in latin america, the middle east, africa and asia will, on the average, grow by 6. 1 % in the period 2010 – 2014, higher than compared to the period 2000 – 2009. asia ’ s prospects during this period will be sustained by several structural factors. first, asia has a favourable demographic structure with a relatively young population with a higher propensity to consume. the high savings rate in asia also allows for higher consumption demand with more than adequate surplus to finance the required investments activity.

in addition, financial intermediation in asia is progressively deepening to meet the new financing needs of households and businesses. in this more recent decade, greater financial integration is taking place. this financial integration will result in a more efficient recycling of asian savings into investments within asia. it has been estimated that asia needs to invest about usd 8 trillion in infrastructure development over the next ten years. the effective channelling of asia ’ s large pool of savings into such productive investment activity in the region will certainly support more rapid growth and development in asia. economic and financial linkages are also being established with other emerging economies in other parts of the world thereby mutually reinforcing the prospects for growth in the global economy. this will in turn contribute towards the rebalancing of global growth. the concentration of economic power in the global economy will become more dispersed. international regulatory reforms let me now turn to the issue of financial regulatory reform. the enormous scale, scope and costs of the global financial crisis has led governments, and regulatory and supervisory authorities from around the world to mount one of the most aggressive agendas of reform to financial regulation seen in recent times. the extent of these reforms has been almost as dramatic as the events that led to their creation. in particular, the potential impact that these reforms will have in re - defining the financial landscape in the future are significant, with broader implications for competition, innovation and ultimately, on the overall economic activity. certainly, strengthening financial regulation is an important goal. and the need to improve the design of financial regulation is not a point of contention. for many emerging economies – certainly in asia – strengthening financial regulation and supervision and the development of the financial system has been an important priority, particularly in this recent decade and well before the onset of this crisis. our resolve on this agenda has not changed since the crisis. on the contrary, it has served to sharpen our focus in contemplating measures to place our financial systems on a firmer foundation. this crisis has focused attention on some important issues that calls for wide ranging regulatory responses. the degree of consensus on the spectrum of recommended reforms by the international community has however been mixed. nevertheless, on some areas there has been a clear consensus. there is agreement that the regulatory framework needs to be more responsive to risk. equally, there is agreement on the need to materially improve risk management in financial institutions, and to strengthen the role of supervisors in the oversight of financial institutions. the need to enhance safety nets, in particular, in