ASEAN must 'lead reshaping' of world financial system
ASEAN must 'lead reshaping' of world financial system
MANILA (Agencies): New Philippine President Joseph Estrada
urged Southeast Asian nations yesterday to take the lead in
reshaping the world financial system to ensure that Asian-style
currency crises are not repeated.
Estrada, speaking at the opening of the annual meeting of
foreign ministers from the Association of Southeast Asian
Nations, said the nine-nation group also needs to strengthen its
ties to win back the confidence of investors and recover from the
devastating regional financial crisis.
Only a few countries in ASEAN -- once the world's most rapidly
developing region -- are expected to escape recessions this year.
"As we have gone through this storm together, we have acquired
a deeper realization that we need to bind ourselves to one
another even more tightly," Estrada said. "After all, the world
treats us as one; we get rewarded and we get penalized as one."
The speech was Estrada's first on foreign affairs since his
inauguration June 30. During his campaign, the former action
movie star pledged to focus on domestic concerns and limit his
overseas travel, particularly to poor countries, which he said
was a waste of time.
He told the ASEAN ministers, however, that Philippine foreign
policy would be anchored on Southeast Asian solidarity. Close
relations within ASEAN, he said, should be forged through greater
frankness.
Indonesian Foreign Minister Ali Alatas said yesterday the
crippling economic havoc sweeping through Southeast Asia
threatens regional stability far more than the accompanying
political and security turmoil.
While recent nuclear tests conducted by India and Pakistan
raised the specter of an arms race and conflicting claims over
the Spratly Islands were a cause for worry, Alatas said the
currency crisis had even greater impact on what was once touted
as the world's fastest growing region economically.
"If the general stability of our region has been shaken in
recent times, it is not due to any political development but
rather to a monetary and financial crisis that erupted at about
this time last year and has, since then, led to widespread
economic and social turmoil," Alatas told the opening session of
the two-day 31st ASEAN Ministerial Meeting.
Indonesia has been the hardest hit by the meltdown. As the
rupiah went into a freefall and prices of food soared,
Indonesians took to the streets in violent riots, killing more
than 1,000 people and forcing ethnic Chinese to flee. Former
President Soeharto stepped down in May, but the turmoil has
continued.
In an unprecedented discussion over dinner Thursday night, the
foreign ministers took the more cautious step of agreeing to
support more frank expressions of views within ASEAN about events
in member nations when they affect other members. But they
decided to maintain the group's cardinal principle of non-
interference in each country's domestic affairs.
ASEAN's willingness to discuss such a critical change comes as
Southeast Asian countries are becoming more aware that problems
in one nation -- such as currency devaluations, political unrest
or environmental degradation -- often affect its neighbors.
Human rights groups were dissatisfied with the change and said
ASEAN should speak out openly to encourage human rights and
democracy in member countries such as Myanmar.
The Alternative ASEAN Network on Myanmar called on ASEAN
yesterday to lead its major trading partners in developing a
transition package to ensure that the country's military
negotiates with the National League for Democracy, headed by
Nobel peace laureate Aung San Suu Kyi.
Estrada said that If ASEAN does not take the lead, "others
will once again shape our destiny for us."
He said a lasting peace and true community is only possible in
Asia if animosities from World War II are finally put to rest.
"It is time for Japan, China and Korea to talk and put the
past behind them," he said, adding that "Then, maybe, bigger
dreams can beckon -- one market, one currency, one community."