Tackling financial crisis via APEC

Tackling financial crisis via APEC

Just when one thought APEC's days were numbered, an economic
crisis in the region has surfaced to propel the grouping once
again to the forefront of regional cooperation -- with the United
States being looked upon once more to take the lead.

Overnight, Thailand's position has changed with a new
government. The former Chavalit administration would have found
it embarrassing to attend a forum of the Asia-Pacific Economic
Cooperation (APEC), a regional grouping of Pacific Rim countries.

The shame came from the former government's failure to put out
the fire set when the baht was dumped by currency speculators.

But with the new government led by Prime Minister Chuan
Leekpai, Bangkok is now viewing APEC as a mechanism to strengthen
cooperation, particularly in international finance which is
currently rocking regional economies.

Incoming deputy prime minister Supachai Panitchpakdi has
suggested that APEC help set up macro-economic coordination
between its members. And Chuan has asked to meet U.S. President
Bill Clinton to discuss the role America can play in helping our
battered economy.

The U.S. had earlier underestimated the extent of the economic
crisis in Thailand and regional currency turmoil. It then chose
to take part in the IMF bail-out program for Indonesia by putting
in U.S.$3 billion.

Bilaterally, the White House and the U.S. Congress ought to
find the new Chuan government a good partner with which to work.
Chuan has established a good rapport with Clinton.

They first met at the 1994 APEC forum at Blake Island, off the
coast of Seattle. And there is common ground between the Chuan
and Clinton administrations on important issues such as human
rights, Burma and general regional diplomacy, something that was
lacking in the previous Chavalit government.

Regionally, there are also two other important developments
that the U.S. will want to engage through APEC, with Thailand's
support. The first is the planned establishment of an Asian fund
-- under Japan's lead -- to help combat currency speculators.

Now, a challenge as big is there for APEC to be the catalyst
in creating a stable global order in finance and help regional
economies overcome difficulties in a liberalized era.

-- The Nation, Bangkok