Japanese Prime Minister Yoshihiko Noda’s visit to Seoul should be an occasion to ponder the future of Northeast Asia. If the three countries ― Korea, Japan and China ― cooperate with each other, they will create an enormous synergistic economic effect.
It is well known that the three will emerge as the world’s largest economic bloc by 2020. They will lead the G20 summit. Despite the prediction, the three nations have yet to demonstrate vision and a road map for their common prosperity.
It may take time for the countries to become an economic bloc, though they share the consensus to take steps toward the creation of the world’s largest trading area.
In this connection, it is encouraging for three prestigious universities of the three countries to exchange students. Under the program, students will be able to get credits at any of the three universities.
The three countries have also opened a center in Seoul to deepen cooperation on both private and government levels. Korea and Japan will expand currency swap agreements with each other so that they will not fall victim to a sudden capital exodus. The swap arrangement should encompass China in the future.
The next step is for the three countries to sign free trade agreements with each other before the three nations become a free trade zone.
It is a tall order for them to form an East Asian union modeled after the EU. It is too premature for the region to create a common currency. Countries worldwide learned a lesson from the current EU crisis how risky a monetary union is.
Records show that a free trade agreement will be beneficial to signatories. Through the free trade agreements, the three countries make their economies mutually complementary to each other.
A gradual deepening of economic cooperation will naturally lead to regional stability.
Unlike the EU and the United States, the three Asian countries have a strong manufacturing base that underpins economic vitality. The recent crisis in the EU and the U.S. showed that no country will be immune from economic shocks without making things.
The Greek debt crisis showed a clear lesson that no country would be able to overcome the emerging economic malaise without a strong manufacturing base. A strong and efficient financial market alone cannot help people live decently. A knowledge economy is meaningless without manufacturing.
The three East Asian countries have a bright future as they have a broad-based manufacturing base.
They should not become hostage to the unhappy past. Their leaders should refrain from wasteful and inflammatory statements that antagonize the other countries.
They should stop squabbling over groundless territorial claims. During his visit to Seoul, Noda demonstrated statesmanship. His reticence was quite commendable in view of his past behavior and ideological conviction. He showed that he represents Japan, not his party or constituency. The sun is rising on Northeast Asia.