ASEAN summit puts spotlight on IMF
ASEAN summit puts spotlight on IMF
KUALA LUMPUR (AP): Southeast Asian leaders, worried that IMF rescues have not stopped their currency crises, urged the United States and other economic powers yesterday to help by showing support.
They also worked doggedly to come up with a joint statement to present a united front for action and bolster market confidence immediately.
"I hope it will have some concrete effect," said Rodolfo Severino, the Philippine undersecretary of foreign affairs. "We wouldn't be wasting several hours talking about it if we didn't think it would succeed."
Several Asian currencies have lost 40 percent or more of their value since the Thai baht was devalued in July, starting a chain reaction that has caused market turmoil worldwide.
The slides have continued despite multibillion-dollar International Monetary Fund bailouts for Thailand, Indonesia and South Korea. Several officials talked yesterday of the need to realize that the situation has changed and consider a different approach.
"No one is making any suggestion the IMF must leave," Malaysian Foreign Minister Abdullah Ahmad Badawi said. "They are taking note of the fact IMF action has not brought improvement in the currencies."
Thai government spokesman Akapol Sorasuchart noted the West has made no strong action or statement of support as it did when Mexico sought an IMF rescue.
"A clear signal from the economic superpowers may be necessary" to overcome the crisis, Akapol said.
He said it may appear the impact of the crisis is limited to Asia, "but in the longer term, the U.S. and other countries will be affected."
Philippine Foreign Secretary Domingo Siazon added: "This is not a regional problem, but a global one."
Their comments came as leaders of the nine-member Association of Southeast Asian Nations began their annual three-day summit, with China, Japan and South Korea also attending.
A high-level Japanese official said Japan would be offering a multibillion-dollar package of soft loans when it meets with ASEAN separately tomorrow. China also has said it has several undisclosed proposals.
"China realizes if the situation in Southeast Asia worsens, it will affect China because we have so much trade with them," Malaysia's Badawi said.
Talks on the currency crisis dragged on for hours, with officials saying no major new initiatives were likely. Malaysia reportedly wanted to include a call for a crackdown on currency traders, blamed by some officials for sparking the troubles.
Philippine President Fidel Ramos said officials were looking at the so-called Manila Framework.
Last month, top ASEAN finance officials met in Manila and agreed on a plan for tighter regional cooperation, including establishment of a watchdog agency to provide early warning of future troubles.
That framework was endorsed by ASEAN finance ministers two weeks ago.
But Ramos added: "During the discussions, why the IMF package is not doing enough will probably be discussed."
Malaysia, which has suggested buying more within the region to avoid costlier imports from elsewhere, has refused to seek an IMF rescue, despite its falling currency.
It bristles at the prospect of austerity measures imposed from outside, saying they could lead to a return to colonialism.
IMF assistance "has worked in the case of Mexico and others," Badawi told reporters. "Perhaps you cannot give a Panadol (aspirin) to all patients, because some may be allergic to it."
Thailand's Akapol also indicated the IMF was too restrictive. He said Thailand's $17 billion package should be enough and there was no chance of a debt moratorium, but "when the time comes, we may have to talk again" about the conditions.
He said Thailand's internal situation has stabilized but has been hit by external factors, an apparent reference to falls in Indonesia, South Korea and elsewhere.
Also on the ASEAN agenda are an ambitious plan for the future, China's growing role in the region, Cambodia's application for admission, and the regional dispute over the South China Sea's Spratly Islands, for which six countries have overlapping claims.
ASEAN groups Indonesia, the Philippines, Singapore, Thailand, Malaysia, Myanmar, Brunei, Laos and Vietnam.
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