By Taro Ichikawa
Asian leaders are calling for a greater role in global governance in which clean and inclusive growth must play a vital role.
"A truly new opportunity has dawned on East Asia and so it must take a greater role in global governance," Nguyen Tan Dung, Prime Minister of Vietnam told more than 400 of Asia's leading decision-makers at the inauguration of the 19th World Economic Forum on East Asia in Vietnam.
The region has recovered swiftly from the global economic crisis, he said opening the two-day Forum on June 6. But it must work to turn recovery into economic growth that is sustainable, equitable and helps to solve the problem of climate change.
Optimism and confidence characterized the remarks of leaders at the meeting -- among them Prime Ministers Bouasone Bouphavanh of Laos, and Samdach Akka Moha Sena Padei Techo Hun Sen of Cambodia, along with Kiat Sittheeamorn, President of Thailand Trade Representative, and Wang Zhizhen, Vice-Chairwoman, National Committee of the Chinese People's Political Consultative Conference (CPPCC), People's Republic of China.
Vice-Chairwoman Wang said that in past crises, it was Asian countries that provided the engine for economic revival. "Everyone is hoping to learn from Asian dynamism." In historic turning points like this, she added, Asia and the rest of the world must work together for world peace and progress.
She called on countries in Asia to develop strategies for post-crisis economic development, continue areas of cooperation and ponder the region’s enhanced role in the world economy.
Indeed, said Klaus Schwab, Founder and Executive Chairman of the World Economic Forum based in Davos, Switzerland, it is time for ABRIC -- the Association of Southeast Asian Nations (ASEAN), Brazil, Russia, India and China -- to take centre stage.
East Asia, he said, should play a more significant role in global affairs.
Cambodia's Prime Minister Hun Sen struck a note of caution, however. He warned against the untimely withdrawal of fiscal stimulus measures in Asia, even as central banks are starting to normalize monetary policy.
"Private investment has yet to return as the engine of economic growth and the poor are still suffering," said the Cambodian prime minister. That said, he echoed the sentiments of other leaders who reaffirmed the key role of the private sector in economic recovery and growth, including public-private partnerships in building infrastructure.
Hun Sen also pointed out that the ascendancy of China and India should not be seen as serious challenges to the competitiveness of other nations in Asia. The challenge lies within each nation. "Countries that remain alert and respond to opportunities will benefit," he said. "Countries bogged down in structural issues and domestic problems will not."
For his part, Bouasone Bouphavanh said many countries in the region have learned lessons from the 1997 Asian financial crisis and the global crisis, which are helping put them on a sustainable growth path.
"I am confident that, with national endeavours and regional cooperation, Asia will be able to galvanize economic growth and attain the goal of sustainable development," the prime minister of Laos said.
Participants were of the view that Asia's role in global affairs has been enhanced by the ascendance of the G20 group of countries as the global forum on global affairs, replacing the G8 group of developed countries. The G20 includes Australia, China, India, Indonesia, Japan and Korea as members.
The Asian presence will be strengthened further at the G20 summit in Korea later this year. Vietnamese Prime Minister Nguyen Tan Dung, who is Chair, 2010 ASEAN, will be take part and promises to represent ASEAN actively in the deliberations.
NEW BUSINESS MODELS
New business models for clean and inclusive growth and the preservation of natural resources are required to face multiple challenges posed by climate change, according to business and government leaders gathered at the World Economic Forum on East Asia.
Collaboration should include incentives and subsidies for research and development in green technologies, greater cooperation among Asian countries in speeding up approval of green goods and services, and changing the mindset of consumers and employees on energy use and conservation.
"Green growth is not just an option," said South Korean Deputy Minister of Environment Yoon Jong-Soo. "It is the new paradigm that the world must be committed to."
Korea made the shift in 2008 when it placed the environment at the centre of economic development and made green industries its new engine of growth. The country will allocate 2% of GDP (gross domestic product) every year on research and development and incentives for businesses and consumers.
Nguyen Thai Lai, Vietnam's Vice-Minister of Natural Resources and Environment, said Vietnam is one of five countries considered to be the most vulnerable to the effects of climate change.
"We have a short-term and long-term action plan and three high-level committees to implement the plan," he said. The initiatives include the reforestation of 5 million hectares of land, stopping illegal logging, working with neighbouring countries to protect the Mekong River and supporting the environment protection activities of business enterprises.
The business representatives on the panel praised the efforts of Korea, Vietnam and other Asian governments, but said much more needs to be done because the challenges are simply too large.
"Most Asian countries already have legislation in place, but enforcement and mindset change are needed," said Frans Muller, Member of the Management Board of German retailer METRO and Co-Chair of the World Economic Forum on East Asia.
Stuart Dean, President, ASEAN, GE International, Malaysia, called for cuts in government subsidies on energy, which are present in at least half of Asian countries. "When you subsidize fossil fuels, people abuse the system," he argued.
"In order to get the right behaviours, you need to price at market levels and find other ways of helping the poor." The relatively low price of conventional energy is also a disincentive to the development of alternative energy, which is more expensive to produce at the initial stages.
Carl Lukach, President of Dupont Asia Pacific Limited in Japan, called on governments to expedite green product approvals by harmonizing their policies and practices, to provide financial incentives to consumers that practice energy conservation, to provide low-cost financing to green enterprises and to promote collaboration between local companies and research institutes. – GLOBAL PERSPECTIVES
-----
External link:
http://www.weforum.org
|
