Developed countries have relied exclusively on subsidies, imposing 12 such measures, while nearly half of the 35 measures adopted by developing countries were tariffs.

“To the extent that the industry is laden with excess capacity, these subsidies impede exit and delay adjustment,” the report said. “Even worse, subsidies may be linked to requirements” forcing companies to preserve domestic employment, “even at the cost of shutting more efficient plants abroad in developing countries.”

Subsidies to prop up the auto sector amount to $48 billion, with high-income countries accounting for $43 billion of that, including $17.4 billion in the U.S. alone (Source: World Bank report also see WSJ Realtime Economics via Economist's View).

cooperation - working together to achieve a goal
protectionism - the economic policy of restricting trade between countries using tariffs on imported goods, quota limits on imports, and other restrictive regulationsto discourage imports and prevent foreign take-over of local markets and companies (See Wikipedia)
anti-protectionism -  being against protectionism and protectionist government policies
major concern - an issue that many people worry about and think is important
crucial - important
run up to Y - the period before a big event happens (during the preparation for the event) 
a summit - a meeting at which the leaders of countries discuss important issues
G20, Group of 20 - a group of finance ministers and central bank governors from 20 economies: 19 of the world's largest national economies, plus the European Union (EU). It also met once at heads-of-government level, in November 2008. Collectively, the G-20 economies comprise 85% of global gross national product, 80% of world trade (including EU intra-trade) and two-thirds of the world population (See Wikipedia)
G20 summit, 2009 London G20 Summit - an important meeting between international leaders to deal with the global economic crisis (the G-20 Leaders' Summit on Financial Markets and the World Economy is scheduled to take place on April 2, 2009. It follows the first G-20 Leaders Summit, that took place in Washington D.C. on November 14-15, 2008) (See Wikipedia)
a watershed event - an important event representing a new stage in history 
accomplishments - important things that have been done or achieved
subsidies - part of the cost of something paid by government to support and encourage something
relied exclusively on subsidies -
capacity - the resources (machines, factories, equipment) necessaryu to produce goods
excess capacity - more resources than you need (can't use or consume everything you could produce)
impede exit - prevent failing companies from failing and leaving the industry (thus making room for new more efficient companies)
delay adjustment -  make change occur more slowly
prop up - support, keep from failing

Avoid beggar-thy-neighbor trade policies: East Asian governments must take strong action to reaffirm their commitment to free trade and regional economic cooperation, and refrain from undue export promotion or import restrictions in order to recover from economic slowdown. They should avoid the type of policy mistakes of trade protectionism made during the Great Depression in the 1930s. (Source: Recommendations of Policy Responses to the Global Financial and Economic Crisis for, March 2009, link)

highest priority - the most important thing
Great Depression - a worldwide economic downturn starting in most places in 1929 and ending at different times in the 1930s or early 1940s for different countries. It was the largest and most important economic depression in the 20th century, and is used in the 21st century as an example of how far the world's economy can fall. The Great Depression originated in the United States; historians most often use as a starting date the stock market crash on October 29, 1929, known as Black Tuesday (See Wikipedia, also see causes) 
cooperative (adjective) - 
co-operative response -
similarities - features or parts that are the same when comparing two different things
a parallel between X and Y - a similarity between X and Y
prospect -
London Economic Conference of 1933 - an important conference during the Great Depression that failed to win international cooperation that could have helped in the economic recovery (See Wikipedia)
recovery, economic recovery - when the economy of a country improves after a recession or economic slowdown 
dash hopes - destroy hopes (no longer expect or hope that something will happen)
dash remaining hopes - destroy the few hopes that you still have 

"In the longer term, the report recommends a greater focus on promoting increased domestic and regional demand to counter an expected decline in trade with developed countries...In the medium-term, exports to developed economies will be less of an engine of growth for the region than in the past and therefore East Asia will need policies to facilitate a shift toward inclusive, sustainable growth driven by regional demand" (Source: ABD news release)

Asian Development Bank (ADB) - a regional development bank established in 1966 to promote economic and social development in Asian and Pacific countries through loans and technical assistance (See website and Wikipedia)
Asian Development Bank Institute - shares development knowledge, papers and economic information (See website)
a paradigm - a model that shows how something is produced
X-driven Y -  Y makes X work, causes X to happen, keeps X going like a motor or engine
export-driven growth paradigm - wealth from export earnings has helped many Asian economies grow, especially Japan, South, Korea, and now China
promoting increased domestic and regional demand - causing more goods to be demanded within a country and its neighbors (region)
in the medium term - not the short-term or the long-term, in-between (maybe two to ten years in the future)
an engine of growth - the thing that causes growth within a country
facilitate a shift toward inclusive, sustainable growth driven by regional demand
economies of scale - (See Wikipedia)

If Chinese Premier Wen Jiabao is so worried about the safety of China’s investment in U.S. Treasury securities, he can order the money be moved elsewhere.

Of course, that likely would drive down the value of the dollar, push up U.S. interest rates and cause huge losses in China’s $700 billion portfolio of Treasuries.

The reality is that Wen and China are stuck. They have no viable alternative so long as China continues to accumulate large amounts of foreign currencies as a result of its big trade surplus. ... [C]ontinuation of a big trade surplus is ... critical to China (Source: John Berry at Bloomberg via Economist's View)

Since August 2007, the global economy has been subject to a sharp and adverse financial shock, with re-pricing of risk and higher cost of funds. This article argues that this shock is a consequence of an unsustainable period of global economic growth involving very large external imbalances. These imbalances – large current account surpluses in many emerging markets matched by current account deficits (CADs) in a number of advanced economies – contributed to an unsustainable cheapening of credit and increased risk-seeking behaviour by financial markets.

The development of the imbalances can be explained by financial underdevelopment in many emerging markets, together with particular savings and investment dynamics across the surplus and deficit countries. These factors established ‘Bretton Woods II’, a global macro-financial dynamic that tied the deficit and surplus economies together in a co-dependent relationship. The current credit crisis appears to mark the limits of this relationship. However, the precise nature of any subsequent adjustment is not immediately clear.