ASEM Ministers Agree on Investment in Infrastructures

Finance ministers from Asia and Europe adopted the ``Jeju Initiative,'' wrapping up their three-day meeting on the southwestern resort island of Jeju on Monday. Highlights of the initiative included an agreement that member countries will forge a better public-private partnership to promote infrastructure development in Asia and Europe.

Such a partnership is badly needed to help underdeveloped countries, especially in Asia, build public infrastructure essential to economic development. However, financing will be a problem. The 8th ASEM finance minister's meeting has laid the groundwork for attracting investment in such public projects.

A network for public-private partnership will be established to activate private investment in various infrastructure-building programs. The network will also stimulate information sharing among member states. It will also provide education and training for less-developed nations and enhance personnel and technological exchanges.

It is meaningful that the ministers have accepted the partnership proposal presented by South Korea. The country is expected to play a leading role in developing plans of action for the proposal. Korea could expand its role as a donor and investor, ending its status as a recipient of international aid programs in the 1950-70s.

According to the Asian Development Bank (ADB), Asian countries will require an annual investment of $228 billion in projects to build ports and railways, pave highways and other public and social infrastructure. The United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) predicted the investment figure could even reach $608 billion.

South Korean firms can actively invest and participate in such development projects. There is no doubt that infrastructure development plays an important role in economic growth and social development. The participating ministers agreed that microfinancing is an effective means to facilitate economic development and social unity.

We hope that the Jeju Initiative will be put into action as soon as possible to step up cooperation between Asia and Europe and forge better relations. Some critics have argued that the meeting falls short of binding agreements and detailed plans of action to boost real collaboration. However, such a meeting is required to share information, discuss ways of multilateral cooperation, and identify issues of mutual concern and find solutions to problems.

In particular, the Jeju meeting took place amid growing worries about a global economic slowdown triggered by skyrocketing prices of crude oil, other natural resources and grain. It appears that the world is faced with the worst economic crisis since the 1970s' oil shock. Some countries are showing signs of economic and financial turmoil reminiscent of the 1997-98 Asian crisis. Thus, it is imperative for countries around the globe to make efforts to prevent a looming catastrophe and promote sustainable growth and prosperity.