Asian officials vow to tackle economic reforms

Asian officials vow to tackle economic reforms

GENEVA (Reuters): Top Asian officials hammered home their commitment to reforming their battered economies yesterday, the second day of the Asian Development Bank's annual meeting in Geneva.

Ministers from Indonesia, South Korea, Japan and Thailand all had the same message for over 2,000 delegates at the gathering: economic reform to revitalize flagging economies is the number one priority.

The Asian financial crisis sent shockwaves around the world when it broke last July, triggering a flood of calls for the former tiger economies to address the root of their problems and reform financial and corporate practice.

Indonesian Finance Minister Fuad Bawazier echoed the sentiment of many of his Asian colleagues on Thursday when he said his government remained committed to such reform.

"We are convinced that the storm will pass. We remain mindful that the ultimate responsibility for economic reform and re- establishment of international credibility rests squarely on our shoulders," he told the meeting.

"I assure you that my government remains committed to the process of economic and financial reforms."

A common theme running through the speeches given by the 19 heads of delegations was the need for cooperation and keeping to international standards.

"All of our reform efforts will have at their basis a strict adherence to market principles and international standards," said South Korean finance minister Lee Kyu-Sung. "We particularly appreciate this cooperative and broad-based approach to economic difficulties."

The Japanese government, which has earned itself a "must try harder" tag for not doing enough to stimulate its economy, fiercely defended its latest economic package.

"While striking the right balance with the longer-term goals of structural reform, our government is now making the utmost effort to ensure economic recovery," Japanese Vice Finance minister Eisuke Sakakibara said.

Dubbed "Mr Yen" for his ability to move currency markets with his comments, Sakakibara said Japan did not react to foreign pressure when setting its policies.

"Officials overseas have freedom of speech. But Japan does not react to foreign pressure when deciding its policies. We act on our own judgment," he said.

The head of the Chinese delegation, deputy central bank governor Yin Jieyan, also gave an upbeat assessment of his country's economy.

In a speech peppered with references to "enterprise reform", and "cooperation", he said China's economic performance in 1998 would be better than last year's.

The U.S. delegation put its weight behind calls for economic reform. U.S. assistant Treasury Secretary for international affairs Timothy Geithner told Reuters financial restructuring was key to Asia's problems.