Role of Asia toward Global Prosperity- New Role of Asia in the Age of Economic Globalization Dr. Moon-Soo Chung
I. Opening Remarks
Chairman Leghari,Distinguished guests,Ladies and gentlemen,
I am honored to speak at this important occasion. I would like to express my sincere appreciation to the Boao Forum Secretariat and the Government of China for arranging this Forum.
Since its launch in 2001, the Boao Forum has developed into one of the most important fora for discussing not only Asia's regional issues, but also various global challenges.
We are all aware that the aim of the Boao Forum is "Asia searching for Win-Win." I sincerely hope that we will be able to take a step closer in achieving this goal by searching for Asia's new role in this era of globalization.
II. Changes in the World Economy and Future Challenges
Since the launch of the WTO, the world has come to embrace an age of interdependence based on free trade and investment. With the development of information, telecommunication and transportation technologies, the global market is no longer divided, but is rapidly integrating into a single open market.
With the advent of digitalized and high-technology society, economic activities are being conducted in real time and competition on a global scale.
Along with the rapid advancement of globalization, regionalization is also expanding. A total of 162 regional trade agreements between geographically proximate or like-minded countries have been established as of January 2005.
This trend of globalization and regionalization presents both opportunities and challenges. The formation of large-scale markets and growth possibilities should be perceived as opportunities to some countries. For other countries that are not prepared, however, globalization brings serious challenges they have never faced before.
III. The 21st Century, the Asian Era
The financial crisis in 1997 had put the"Asian Value" to question. Having overcome the crisis, however, a new Asian era is emerging once again.
Asia's dynamism is apparent when we compare the world's annual growth rate of 3.1% against Asia's 4.1% over the last three decades. From 1976 to 2004, Asia's share in the world trade volume rose from 15% to 27%. Asia has become the new growth engine of the world economy.
In contrast, Asia's role in establishing global norms has been rather weak up to now. At a time when Asia's role in the global economy is more important than ever,"Asian values" should not be used as a pretext to delay the incorporation of the global standards.
Instead, we should make efforts to exercise further leadership in setting global norms, enhancing Asia's role in the development of the world economy.
IV. Asia's Role toward Global Prosperity
Ladies and gentlemen!
I would like to use this occasion to highlight some areas in which I believe we can make contributions to accomplishing our goal for common prosperity of Asia.
First of all, Asian countries should make consistent efforts to reduce the so-called Asian discount largely attributable to the lack of efficiency, transparency and accountability. The answers here are structural reforms in financial and corporate sectors as well as in the public sector.
Second, Asian countries should seek to achieve enhanced regional economic cooperation. These efforts will contribute to promoting regional economic growth and stability. They will also provide us with equal footing with other regional economies such as EU and NAFTA.
For this reason, ongoing discussions on FTA among Asian countries are long overdue and we need to expedite such discussions.
In line with these efforts, financial cooperation should be intensified as well.
The ASEAN+3 has been discussing ways to deepen and strengthen the current currency swap networks, namely the Chiang Mai Initiative. The new scheme will consist of a multilateral liquidity support and surveillance mechanism, which will play a critical role toward the monetary integration of the region.
In the meantime, more attention should be paid to the issue of exchange rate stability in the region.
Third, harmonized efforts should be made to reduce the gulf between the rich and poor economies in the region. Cooperation for increasing economic and technical assistance to less developed countries, concerted efforts towards minimizing the digital divide across the region and extended contribution to the Millennium Development Goals(MDG) can pave the way for common prosperity of the region.
The swift and massive assistance from the international community following the devastating tsunami in South-East Asia of last December has not only served the humanitarian cause but also contributed to significantly lessening adverse impacts on those people in poverty.
Last but not least, I would like to emphasize that there is an important prerequisite for Asia to achieve regional economic cooperation. Our efforts for economic cooperation and regional peace and prosperity should be based on mutual understanding and trust.
We all know that strong political leadership was essential for European economic integration. If the leaders of Germany and France had not overcome their past history through conscious and sincere efforts, it would have been impossible to make the European economic integration as successful as it is today.
Unfortunately, Asia is still chained to its legacy of past history. With leadership that fails to win the trust of neighboring countries, real economic integration and development can never be achieved. This will be possible only after a deep and truthful contrition for the wrongdoings of the past and subsequent reconciliation.
V. Korea's Role and Policy Direction
Ladies and gentlemen!
Let me add a few words about Korea's role toward our common goals.
With a yearly average 7.7% of economic growth for the past 40 years from 1960 to 2000, Korea has been regarded as an economic role model for many Asian countries.
The financial crisis of 1997 had, however, put the Korean economy to a serious trial, almost driving its whole financial and corporate system into an imminent collapse. Only after the painful process of structural reforms and burden sharing, we were able to overcome the crisis.
In retrospect, we could make use of the crisis as an opportunity to change the economy to an open globalized system, strengthening the economic fundamentals at the same time.
Now, building a truly open and advanced economy is our goal.
Harnessed with high-technology, Korea aspires to transform itself into the business hub of Northeast Asia where businesses, regardless of their nationalities, can undertake economic activities in the most business-friendly environment.
Korea's business hub initiative comprises two major pillars, one being a financial hub focusing on advanced asset management businesses and the other a logistics hub centered on the free economic zones of Incheon, Busan and Gwangyang.
The Korean government plans to bring up living conditions for foreigners, including education and medical services to the world class level.
Through these efforts, Korea hopes to bring growth and benefits to all Asian countries.
In particular, as this year's APEC chair economy, Korea hopes to make a substantial contribution to achieving our common goals through trade and investment liberalization and facilitation in the Asia-Pacific region.
VI. Closing Remarks
One country alone cannot achieve the goal of economic cooperation and common prosperity of Asia. It requires concerted efforts of all countries in the region and we need to work hand in hand toward a brighter future.
I am confident that the establishment of peace and prosperity within Asia will be a driving force in gearing up the global economy and promoting the world peace in the age of globalization.
In closing, I would like to once again extend my appreciation to the Boao Forum Secretariat. I also hope this forum will continue to be the occasion where Asian countries promote mutual trust and share insights to enhance regional cooperation and common prosperity.
Thank you.