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