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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Jim S who wrote (9879)	11/15/2000 9:28:08 PM
From: Rolla Coasta	Read Replies (1) \| Respond to of 9980

From scmp.com US urges faster reform JAKE LLOYD-SMITH in Bandar Seri Begawan -------------------------------------------------------------------------------- United States President Bill Clinton has issued a stern warning to Asian leaders that they must press on with economic reform or risk exposing the region to another financial crisis. Addressing executives on the sidelines of the Asia-Pacific Economic Co-operation forum in Brunei, Mr Clinton also urged the start of a new global trade round next year. The call risks alienating some developing states, which are wary of backing a new round of trade negotiations without first setting a firm agenda. "The truth is, the problems the financial crisis exposed were very real, and they haven't all been solved yet," Mr Clinton said. "It would be a cruel irony, indeed, if the recovery were to breed a complacency that stalled the very changes making recovery possible." Mr Clinton's remarks followed similar warnings from the International Monetary Fund and independent economists that the tempo of reform has been slowing as growth rates have picked up. Thailand, Indonesia and South Korea are cited as the countries of most concern. Apec economies must "continue doing what we all said had to be done in the wake of the recent financial crisis, to improve transparency, to speed up financial restructuring, to strengthen the rule of law and to build more accountable political institutions", Mr Clinton said. To be successful, financial reforms had to be accompanied by the promotion of electronic commerce, widespread Internet access and effective social and medical policies to provide "strong safety nets". "We also need to fight the infectious diseases that kill people and progress in too many of our nations," he said. "There will not be a lasting recovery in Asia if Asia becomes the next epicentre of the global Aids crisis. But that could happen without concerted leadership." Mr Clinton joined 20 other Apec leaders yesterday to debate the progress that has been made since the crisis of 1997 and to map out future priorities, including the group's stance on a new round of global trade talks. This will be Mr Clinton's last summit at Apec, a group he helped develop in the early years of his presidency. "The most important thing we can do is to launch a new trade round at the [World Trade Organisation]. It ought to happen as early as possible next year," he said. The call for the start of a fresh WTO round next year puts Mr Clinton at odds with an Apec ministers' communique, issued just three days ago, which said the agenda should be settled in the coming year. Addressing the same audience, President Jiang Zemin told delegates that although economic prospects in Asia were bright, growing disparities in the level of wealth between member states could pose a threat to regional stability. "Economic globalisation, with developed countries playing a dominant role, has resulted in a wider gap between countries and regions in their level and positions in global development," Mr Jiang said. "This will not help the sound development of the world economy, nor peace and stability in the region and the world at large." The two leaders are set to hold a mini-summit today, to address a range of economic and security issues. Mr Jiang said: "The new century will see a more open China. With its entry to the WTO, China will enter a new stage of opening-up. We will be committed to the development of an open economy." He said he was confident growth in the mainland would be sustained even as Beijing continued to restructure the economy. "This year witnesses a fresh rise in China's GDP and national revenue and remarkable achievements in turning around loss-making state-owned enterprises. "Economic restructuring is well under way, foreign trade is gaining momentum and the domestic market is thriving." Apec forecasts suggest China's economy may post some of the region's strongest growth figures next year, expanding at 8 per cent against 7 per cent this year. Across the 21 member economies, the group forecasts a weighted average expansion of 3.5 per cent next year, compared with 4.6 per cent this year, 3.6 per cent last year and 2.2 per cent in 1998.