Asia to become a power of its own reckoning

Asia News Network Singapore

Following is a report from the Young Leaders' Forum in Singapore on Sept. 2 and 3, 2004. The forum was organized by the Asia News Network and the Konrad Adenauer Foundation.

Asia is pounding away, promising to make its mark on the world map -- but hitches along the way could deflect the continent from its course. This was the prognosis at a young leaders meet last week where some leading Asian personalities pondered over the region's future, some years hence -- in 2015, with the editors of 14 regional newspapers.

Asia is a world superpower in the making but imperfect political and institutional systems are holding back its potential, regional economist Sailesh Jha told the forum.

"I'm bullish on Asia ex-Japan," said Dr. Jha, a director with Credit Suisse First Boston.

The potential of regional productivity booms -- with the continent being in the early to middle stages of the cycle -- the region's competitiveness and its transition from being manufacturing-dependent to services-driven spell optimism, he said.

Dr. Jha was giving his take on the region's economic outlook at the two-day Young Leaders meet hosted by the Asia News Network (ANN) and the Konrad Adenauer Foundation.

The ANN is a group of 14 leading newspapers in the region with a combined readership of about 50 million.

Leading the economic tirade would be China and India followed by Indonesia and Malaysia, Dr Jha said, adding countries should now focus on fixing their economic institutions, for corporate governance is a key concern.

Only then can innovations and inventions take place, he said. Without requisite changes, he warned, Asia would remain a "sweat- shop" continent and its transition to high value-added production -- which could lead to more inflows for the region -- would not take place. Participants emphasized that the challenge lies in tackling the political and social impediments head on.

A young member of the Indian parliament, Omar Abdullah, said there was much interest now in which way the Indian economy should head, but much of it was politicized. "The man on the street has yet to be convinced that they can benefit from the reforms."

Besides, he said, it was time now for governments to push for deeper reforms. Japanese member of parliament Noboru A. Minshuto said it was time now for Tokyo to initiate political reforms. "The ruling party in Japan has ruled for fifty years."

The political system suffers from meta-fatigue and is malfunctioning.

"During the Upper House elections in July, the issues of debate were corruption related. Former prime minister Hashimoto was also questioned by the police. "Hence, there is a need to overturn the two-party system."

Dr. Vivian Balakrishnan, the youngest among the ministers in Singapore, told the audience that finding issues that can fire up today's youth is a key challenge for governments today. Speaking during an interactive question and answer session, he said young leaders led the fight decades ago as Singapore won independence and took critical decisions that gave the city state its modern, cosmopolitan thrust.

But that has led to a "happy state where, in a sense, the youth don't have a huge cause of epic proportions to fight for."

This was "dangerous", he said, since they could just focus on very narrow issues, "which in a capitalist system will simply mean aggrandizing wealth for themselves". Dr Balakrishnan is the Republic's Acting Minister for Community Development, Youth and Sports and Senior Minister of State (Trade and Industry).

The young should be reminded of their obligations but, he said, appealing to the current generation will not be easy.

Giving youth a house, water, etc "does not turn them on".

"We need to find a way to tell our young there are even more opportunities... they can use this place as a launch pad, to bring up family, to park their assets, to invest in."

These and other changes could galvanize the region's clout, members agreed. In the years to come, former Malaysian deputy prime minister Musa Hitam felt the United States would become more inward looking, despite the victory of either party in the coming November election.

Referring to the Iraq situation, Musa said America would try to extricate itself with declarations of honorable intent.

"Maybe this is a blessing in disguise,' he said.

Outlining the scenarios for 2015 he said the China and India would emerge as epicenters of growth. But in all likelihood China would be on top.

"It will be a demonstration of a working, systemic political development, in tandem with economic growth,' he told the audience.

This would be in contrast to the free-for-all democratic system of India.

"China is the fast-emerging giant, its clout will firm up and the nation will use this asset in a more assertive manner."

This in turn would result in a declining dependency on the U.S. and intra-trade within ASEAN would increase, Musa said.

For ASEAN, the former Malaysian deputy prime minister said he believed Malaysia would be more confident in its liberalization process, Singapore would ease up politically and the Indochina states would cozy up to the rest of ASEAN, offering different recipes for success. But even as Asia switched gears for a better future, Musa felt the need to not lose the human touch.

"In a modernizing, fast-moving, shrinking world, people take things for granted in the world of telecommunications.

"One lacks the human touch and the human aspect in the conduct of daily lives and international relations. They live in a blinkered sort of environment and one may under-appreciate the value of opportunity in interaction."

On a social level, Filipino Benjamin Abadiano highlighted the need to ensure human security as countries push for more economic development.

Abadiano, a Ramon Magsaysay award recipient for emergent leadership, said governments must ensure that social issues do not get undermined.

Young Thai media activist, Supinya Klangnarong, said the press could play the role of a watchdog as Asia speeds along.

Supinya, who faces a law suit filed by Thai Prime Minister Thaksin Shinawatra-owned Shin Corp., said as the economy opens up, the corporate sector tends to become more powerful.

"There needs to be more checks and balances for the people.

"If the corporate sector and the government are too close, the people will have no say."

This was the inaugural Young Leaders meet organized by the ANN.

Its members are the China Daily, Yomiuri Shimbun and the Daily Yomiuri of Japan, The Statesman of India, The Straits Times of Singapore, The Star and Sin Chew Daily of Malaysia, The Nation of Thailand, The Jakarta Post of Indonesia, the Philippine Daily Inquirer, The Daily Star of Bangladesh, the Island of Sri Lanka, the Korea Herald and Vietnam News.