East Asia Key to New Global Economic Format
By Lee Hyo-sik
Staff Reporter
Korea should assume an active role in integrating East Asia and advocating the interests of the region on a global stage, Hadi Soesastro, senior fellow at the Center for Strategic and International Studies in Indonesia, said Monday.
At a seminar titled ``Global Economic Governance and Korea's Role in East Asia,'' held at the Shilla Hotel in Seoul and organized by the Korea National Committee for Pacific Economic Cooperation (KOPEC), Soesastro said in a keynote speech that East Asia should organize itself as a common community and actively participate in shaping the new global economic governance structure.
``It can be effectively done by strengthening the region's participation in G20. In this regard, Korea, which is a co-chair country of the international gathering along with Britain and Brazil next year, can play a leadership role in organizing East Asia,'' he said.
Soesastro then said Asia's fourth largest economy can also play a mediator role, suggesting it promote relations with ASEAN economies for stronger regional economic cooperation and help Japan and China mend fences for the benefit of all of East Asia
``Additionally, East Asia needs to participate in the APEC forum and should play a greater role in forming a new global economic governance structure. APEC links East Asia to the United States, the key to achieving not only economic, but also military and political stability in the region,'' he stressed.
Another keynote speaker Yoshiji Nogami, chairman of the Japan National Committee for Pacific Economic Cooperation echoed Soesastro's view that the U.S. is important to East Asia, calling on the region to actively engage with the world's largest economy.
``Korea will be a chair country of the G20 next year and should increase its profile and pursue the interests of the entire region'' Nogami said.
In response, Deputy Strategy and Finance Minister Shin Je-yoon said that the nation will continue making efforts to facilitate the agenda adopted at the previous G20 summit and push for a speedier integration of East Asian economies.
``Following the global financial crisis, G20 has largely replaced G7 as the main venue for the discussion of important international economic issues. Korea is a co-chair country of the gathering along with Britain and Brazil. We will play a key role in overcoming the ongoing economic downturn and reforming global economic governance,'' Shin said.
The deputy minister said through the Washington and London summits, G20 nations have agreed to reinforce macroeconomic cooperation, reject trade protectionism, strengthen financial supervision and regulation, reform global financial institutions and support emerging markets and developing economies.
Early this month, Korea, China, Japan and 10 ASEAN nations agreed to establish a $120-billion Asia Joint Fund under the Chiang Mai Initiative (CMI), boosting financial cooperation in the region. The fund is a bilateral currency swap scheme created to help prevent a disaster similar to the one generated by the 1997-98 Asian financial crisis.
Korea will commit a total of $19.2 billion to the regional fund, or 16 percent, while Japan and China will each provide $38.4 billion, or 32 percent _ the remaining $24 billion will be contributed by the 10 ASEAN member countries.