Obuchi optimistic Asia to become center of growth

Obuchi optimistic Asia to become center of growth

BANGKOK (Reuters): Japanese Prime Minister Keizo Obuchi, in Thailand on the last leg of a three-nation Southeast Asian visit, said on Friday he was confident that Asia would be the center of growth in the 21st century.

Praising efforts taken to promote economic recovery in the region following the devastating financial crisis that hit in 1997, Obuchi told a news conference: "Through these efforts, I am confident that in the 21st century, Asia will again become the center of growth."

He said Japanese aid was starting to bear fruit, but warned that more efforts must be made, especially to reduce economic disparities among Asian nations.

"Asia's prosperity and our prosperity are very closely linked. It is essential that we do everything possible to help." He said assistance to Asia must continue even though Japan itself is struggling with a number of economic problems, including a massive and growing public debt.

In a slap at rising criticism of his fiscal policies, Obuchi said: "Our policy is correct. We have nothing to apologize for".

Obuchi came to Thailand following visits to Cambodia and Laos, the first time a Japanese premier has gone to those countries in decades.

Obuchi promised his Thai counterpart Chuan Leekpai on Thursday that Tokyo will continue to offer assistance to Thailand to bolster its recovering economy, aid that includes both measures to boost Japanese investment in the country and support for human resources development.

Its investment push will be backed up with visits by delegations from the Japan External Trade Organization (JETRO) and the Federation of Economic Organizations, or Keidanren, in February and March respectively.

In Cambodia and Laos, two of Asia's poorest nations, he offered substantial assistance aimed primarily at helping the two catch up economically to the other countries in the 10-nation Association of Southeast Asian nations (ASEAN).

"We must make our efforts as efficient as possible," Obuchi told the news conference. He added that he would try to attend the 10th United Nations Conference on Trade and Development (UNCTAD) in Bangkok next month.

Japan has touted the visit as a chance to gather the opinions of ASEAN members prior to hosting the Group of Eight (G-8) developed nations summit later this year.

Obuchi told the news conference he hoped the summit would fully reflect Asian interests and send "a bright and strong message" to the world.

Chuan has asked Obuchi to make a plea for "more harmonious" policies from international organizations such as the International Monetary Fund (IMF), and that world trade policies be fair to both developing and advanced nations.

Critics blamed the IMF for exacerbating the Asian crisis with its insistence on austere economic policies in return for financial assistance.

Japan has won widespread support in ASEAN by leading a chorus of Asian criticism of the IMF's handling of the financial crisis. It has also provided massive financial support, including the US$30 billion "Miyazawa Initiative" aid program.

"Japan has given us the inspiration for our recovery efforts," Chuan told Obuchi on Thursday.

Obuchi's visit is a signal of Japanese determination to take on a broader regional role, but whether that will include political as well as economic leadership remains in doubt.

Observers say Japan is still not strong enough to do both and that this trip is really aimed at building a wider power base.

Obuchi will have an audience with Thai King Bhumibol Adulyadej later on Friday and is scheduled to leave Thailand early on Saturday.