Transcript Speech Hideki Wakabayashi - Asia Economic Forum (AEF)

Asia’s Responses to
Financial and Economic Crises
“A New Era for Coexistence
in Asia”
Hideki Wakabayashi
Full-Time Councilor
The Japan Forum on International Relations
(JFIR)
Contents of My Presentation
1. Where are we in the global capitalism?
2. Asian Values and Spirits－“Coexistence”
3. High Economic Potential in Asia
４．Promoting Regional Cooperation ＆ Integration
Where are we
in the global capitalism?
Is it just on the way for adjustments?
or
Does it itself include many essential
problems to be addressed ?
Does it need drastic changes to make
the world in order?
???
What are economic activities for?(1)
• Is the Market Economy the most effective
system to bring growth with “the invisible
hand”?
• Is it to maximize short-time profits and
interests at the sacrifice of others (human life,
environment, developing countries, etc.)?
Answer is “NO!”
But we are doing “YES”
What are economic activities for?(2)
Baien MIURA (Philosopher, in Edo-period)
Economy is to make “righteousness” an
“advantage” for all.
J. M. KEYNES (Economist in the 20th Century)
Economics is Moral Science,
not Natural Science, with Self-Examination and
Value Judgment.”
Asian Values and Spirits
“Coexistence”
•
•
•
•
European Values and Asian Values
“He is rich who has few wants.”
“Everything in moderation”
“Mottainai Culture”
“Is Coexistence” contradictory to“ Competition”?
Convey Wisdom of Asia to the World
Economic Indicators (2007)
USA
ASIA
EU27
Population
4.5%
48.5%
7.4%
GDP (Market)
25.5%
22.8%
31.0%
GDP( PPP)
21.3%
30.1%
22.7%
Nominal Growth Rate
4.9%
11.7%
5.5%
Personal Expenditure
30.4%
19.2%
31.5%
P.E. Growth Rate
6.1%
4.8%
5.6%
Source : IMF, DOT, Bloomberg
Data : Personal Expenditure and P. E. Growth Rate (2006)
Export Ratio within the Region
(2006,%)
Final＋
Intermediate
Goods
Intermediate
Goods
EU27
69.4
Asia
64.0
Final Goods
68.4
EU27
EU27
67.3
50.6
Asia
35.4
Asia
0.0
10.0
20.0
30.0
40.0
Source: METI from 「RIETI-TID2007」
50.0
60.0
70.0
High Economic Potential in Asia
• Boost domestic demand and economic
growth potential by increasing personal
expenditure and export of “Final Goods”
within Asia
Reduce reliance on US & Europe
• Invest infrastructure, environment,
water and energy to improve human’s
life
• Provide safety nets to eliminate anxiety
for future
Economy is associated with global threats
Food /Energy Crisis
Climate Change
Military Attack
Infectious Disease
Economic Stability
Terrorism
Nuclear
Proliferation
Global Poverty
Chemical
poison
Conclusion - Risk and Opportunity
• →Strengthening international financial institution
(IMF&ADB) , regulation and surveillance function
• →Strengthening the Chiang Mai Initiative and other
financial cooperation scheme
• →Avoid protectionism and show an open market
• →Increase personal income and domestic demand
• →Promoting sustainable development addressing
global issues such as climate change, pandemic
disease, food and energy crisis, etc.
• →What should Japan respond to the crisis?
Conclusion – “Coexistence”
With spirit of “Coexistence” in the country,
the region and the world
Create vast majority of middle class
for prosperity and stabilization of
society
Enhance Regional Cooperation and
Integration
Thank you for your attention