This publication is the annual report of the Asian Development Bank (ADB) on Asia''s progress in regional cooperation and integration. It covers ADB''s 48 regional members and analyzes regional and global economic linkages. This year''s special chapter, "Toward Optimal Provision of Regional Public Goods in Asia and the Pacific," examines how collective action among countries can help find solutions to growing transnational development challenges. It discusses how to best provide regional public goods that transcend the so-called "collective action problem," which occurs when individual interests are too weak on their own to drive cooperation on common issues. The chapter suggests that multilateral development banks should act as honest broker in enhancing mutual trust and facilitating regional cooperation for regional public goods.