18 APEC leaders to unite to deal with economic crisis
By Meidyatama Suryodiningrat
VANCOUVER, Canada (JP): The 18 leaders of the Asia Pacific Economic Cooperation (APEC) have expressed commitment to overcoming together the economic turmoil which has been described here as a precursor to a possible "Asian meltdown".
United States President Bill Clinton and Secretary of State Madeleine Albright warned Monday (local time) about the dire consequences ahead if economies fail to produce sound economic measures.
"We need to take this very seriously and we have to work very hard," Clinton said in a different tone to his earlier remarks when he called the Asian financial crisis "little glitches".
Secretary Albright said the specter of debt and deflation hovering over the region would slow down growth rates.
"We meet amid predictions that the Asia Miracle will be succeeded by an Asia Meltdown," Albright said. "In the months ahead the region's economies must combine the energy of the tiger with the wisdom of the owl."
She asserted that with the International Monetary Fund (IMF), the international community must be ready to help nations "that are doing their best to help themselves".
The leaders of the APEC forum will meet Tuesday (today Indonesian time) for a one-day annual retreat. The gathering will issue a document expected to include a commitment to tackle the crisis and reaffirm support for the Manila Framework which offers supplementary financing to back up the IMF.
APEC comprises Australia, Brunei, Canada, Chile, China, Hong Kong, Indonesia, Japan, Malaysia, Mexico, New Zealand, Papua New Guinea, the Philippines, South Korea, Singapore, Taiwan, Thailand and the United States.
The forum seeks to break down trade and investment barriers by 2010 for developing countries and 2020 for developing ones. But discussions this year have been dominated by the financial crisis rather than trade liberalization.
The urgency of the situation facing Asia was reflected in the leaders' separate statements Monday as they filled the day with bilateral meetings and listened to a report from the APEC Business Advisory Council.
Newly appointed Thai Prime Minister Chuan Leekpai warned that no nation is immune to the financial woes sweeping the region.
"Confidence and optimism is out. Uncertainty and gloom are in," he said. "Economic order has been turned upside down."
Philippines President Fidel Ramos said the turmoil cannot be waved away by talks.
The situation has been exacerbated in the past few days with South Korea calling for an IMF bailout and the crash of Yamaichi Securities, the fourth largest brokerage house in Japan.
These latest developments have created widespread fear that could result in the catastrophic crash of the Japanese economy.
Confident
U.S. Deputy Secretary of Treasury Larry Summers said he remained confident about the strength of the Japanese economy, but said it was important for Tokyo to resolve financial strains in Japan by addressing troubled financial institutions in a way that protects depositors.
Summers said that an important panacea for Asian economies facing the crisis was to come up with a strong domestic response to create an environment which can attract capital and maintain confidence.
Officials here have stressed that the funds provided for countries in crisis are used effectively and that necessary reforms have been undertaken.
Dan Tarullo, assistant to the U.S. president for international economic policy, said that in funds negotiations, careful attention was given to the kind of structural and macroeconomic policy needed in Indonesia, which has received a US$23 billion bailout package from the IMF.
"I think there was general confidence that ... stabilization (would) occur if the conditions were adhered to," Tarullo said referring to Indonesia.
On Tuesday (today Indonesian time), the leaders will gather at the Museum of Anthropology to hold closed discussions on APEC's liberalization process and the financial crisis.
They will pose for the official "family portrait" in aviator jackets and denim shirts, a Canadian diplomat was quoted by AFP as saying Monday.
In an effort to lighten up the often tedious debate associated with such summits and to add a bit of local color, it has become the tradition of the leaders to wrap up their gatherings dressed in clothing symbolic of the host country.
The aviator jackets will be emblazoned with a beaver logo, depicting one of Canada's best-known indigenous animals.
The aviator jackets -- with the name of each leader emblazoned on it -- and the denim shirts, said the Canadian diplomat, are designed to reflect Canada's diversity.