asia’s responses to financial and economic crises “a new era for coexistence in asia”
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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). - PowerPoint PPT PresentationTRANSCRIPT
Asia’s Responses to Financial and Economic
Crises“A New Era for Coexistence
in Asia”
Asia’s Responses to Financial and Economic
Crises“A New Era for Coexistence
in Asia”
Contents of My Presentation
Contents of My Presentation
1. Where are we in the global capitalism?1. Where are we in the global capitalism?
2. Asian Values and Spirits -“ Coexistence”2. Asian Values and Spirits -“ Coexistence”
3. High Economic Potential in Asia3. High Economic Potential in Asia
4. Promoting Regional Cooperation & Integration 4. Promoting Regional Cooperation & Integration
Where are we in the global capitalism?
Where are we in the global capitalism?
Is it just on the way for adjustments? orDoes 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)
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)
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”
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)
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, BloombergData : Personal Expenditure and P. E. Growth Rate (2006)
High Economic Potential in Asia
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
Economy is associated with global threats
Climate Change
Military Attack Infectious Disease
Terrorism
Chemicalpoison
NuclearProliferation
Global Poverty
Food /Energy Crisis
Economic Stability
Conclusion - Risk and Opportunity
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” 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