The International Monetary Fund said that Asia has emerged as a global powerhouse in the process of recovering from the worldwide economic crisis, and its economic performance will likely continue to grow down the road.
Mr Dominique Strauss Kahn MD of IMF said that “Asia has emerged as a global economic powerhouse from the recent worldwide financial crisis. Asia’s time has come. No one can doubt that Asia’s economic performance will continue to grow in importance.”
His emphasis on Asia’s role in the international community comes after the IMF recently projected that the economy in the Asian region will grow 7.75% in 2010, a much faster rate compared with the around 4.5% predicted for the global economy.
Mr Strauss Kahn, however, noted that countries in the region should guard against future possible outside shocks at a time when downside risks linger, such as the recent fiscal debt problems in Europe.
He also emphasized that Asia should nurture its domestic investment and consumption as its second engine of growth, saying that it would be more crucial when its traditional means of growth, such as exports to advanced nations, are now facing a slump.
Touching on the IMF’s reform issue, he said that Asia’s role in the global economy needs to be reflected in voice and representation in global financial institutions, adding that his organization is now working to complete the realignment of voting power by the end of November this year.
He said that “We are now working on a second stage, to be completed by the G 20 summit in Seoul in November 2010 that will do even more to help align Asia’s representation in the Fund with its economic weight in the world.”
At the same conference co hosted by the IMF and the government here, Mr Yoon Jeung hyun finance minister of South Korea said that the IMF’s role should change in Asia, calling for more efforts to be made in reflecting the region’s increased clout and responsibilities in the global community.
Mr Yoon said that “Up until now, it seems that the IMF has not fully assumed its role of ensuring macroeconomic stability and supporting economic development in Asian developing countries. I believe the IMF has an important contribution to make by proposing and enacting concrete and realistic measures to strengthen financial safety nets around the globe.”
Mr Strauss Kahn still noted that now is the time to focus more on the future, not on the past, adding that the IMF is seeking to redefine its relationship with Asian countries based on the lessons learned from the crisis a decade ago.
Source: www.yonhapnews.co.kr (Tuesday, 13 Jul 2010)
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