ASEAN summit puts spotlight on IMF<\/p>\n
KUALA LUMPUR (AP): Southeast Asian leaders, worried that IMF
\nrescues have not stopped their currency crises, urged the United
\nStates and other economic powers yesterday to help by showing
\nsupport.<\/p>\n
They also worked doggedly to come up with a joint statement to
\npresent a united front for action and bolster market confidence
\nimmediately.<\/p>\n
\"I hope it will have some concrete effect,\" said Rodolfo
\nSeverino, the Philippine undersecretary of foreign affairs. \"We
\nwouldn't be wasting several hours talking about it if we didn't
\nthink it would succeed.\"<\/p>\n
Several Asian currencies have lost 40 percent or more of their
\nvalue since the Thai baht was devalued in July, starting a chain
\nreaction that has caused market turmoil worldwide.<\/p>\n
The slides have continued despite multibillion-dollar
\nInternational Monetary Fund bailouts for Thailand, Indonesia and
\nSouth Korea. Several officials talked yesterday of the need to
\nrealize that the situation has changed and consider a different
\napproach.<\/p>\n
\"No one is making any suggestion the IMF must leave,\"
\nMalaysian Foreign Minister Abdullah Ahmad Badawi said. \"They are
\ntaking note of the fact IMF action has not brought improvement in
\nthe currencies.\"<\/p>\n
Thai government spokesman Akapol Sorasuchart noted the West
\nhas made no strong action or statement of support as it did when
\nMexico sought an IMF rescue.<\/p>\n
\"A clear signal from the economic superpowers may be
\nnecessary\" to overcome the crisis, Akapol said.<\/p>\n
He said it may appear the impact of the crisis is limited to
\nAsia, \"but in the longer term, the U.S. and other countries will
\nbe affected.\"<\/p>\n
Philippine Foreign Secretary Domingo Siazon added: \"This is
\nnot a regional problem, but a global one.\"<\/p>\n
Their comments came as leaders of the nine-member Association
\nof Southeast Asian Nations began their annual three-day summit,
\nwith China, Japan and South Korea also attending.<\/p>\n
A high-level Japanese official said Japan would be offering a
\nmultibillion-dollar package of soft loans when it meets with
\nASEAN separately tomorrow. China also has said it has several
\nundisclosed proposals.<\/p>\n
\"China realizes if the situation in Southeast Asia worsens, it
\nwill affect China because we have so much trade with them,\"
\nMalaysia's Badawi said.<\/p>\n
Talks on the currency crisis dragged on for hours, with
\nofficials saying no major new initiatives were likely. Malaysia
\nreportedly wanted to include a call for a crackdown on currency
\ntraders, blamed by some officials for sparking the troubles.<\/p>\n
Philippine President Fidel Ramos said officials were looking
\nat the so-called Manila Framework.<\/p>\n
Last month, top ASEAN finance officials met in Manila and
\nagreed on a plan for tighter regional cooperation, including
\nestablishment of a watchdog agency to provide early warning of
\nfuture troubles.<\/p>\n
That framework was endorsed by ASEAN finance ministers two
\nweeks ago.<\/p>\n
But Ramos added: \"During the discussions, why the IMF package
\nis not doing enough will probably be discussed.\"<\/p>\n
Malaysia, which has suggested buying more within the region to
\navoid costlier imports from elsewhere, has refused to seek an IMF
\nrescue, despite its falling currency.<\/p>\n
It bristles at the prospect of austerity measures imposed from
\noutside, saying they could lead to a return to colonialism.<\/p>\n
IMF assistance \"has worked in the case of Mexico and others,\"
\nBadawi told reporters. \"Perhaps you cannot give a Panadol
\n(aspirin) to all patients, because some may be allergic to it.\"<\/p>\n
Thailand's Akapol also indicated the IMF was too restrictive.
\nHe said Thailand's $17 billion package should be enough and there
\nwas no chance of a debt moratorium, but \"when the time comes, we
\nmay have to talk again\" about the conditions.<\/p>\n
He said Thailand's internal situation has stabilized but has
\nbeen hit by external factors, an apparent reference to falls in
\nIndonesia, South Korea and elsewhere.<\/p>\n
Also on the ASEAN agenda are an ambitious plan for the future,
\nChina's growing role in the region, Cambodia's application for
\nadmission, and the regional dispute over the South China Sea's
\nSpratly Islands, for which six countries have overlapping claims.<\/p>\n
ASEAN groups Indonesia, the Philippines, Singapore, Thailand,
\nMalaysia, Myanmar, Brunei, Laos and Vietnam.<\/p>\n
Malaysia -- Page 6<\/p>\n
Drive -- Page 10<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/asean-summit-puts-spotlight-on-imf-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }