The Hindu Business Line : Asean+3 to address liquidity issues

Finance Ministers of the ASEAN, China, Japan and Korea referred to as Asean+3 on Thursday reaffirmed their resolve to address short-term liquidity difficulties in the region and supplement the existing international financial agreements.

Addressing a joint press conference here coinciding with the Asian Development Bank meeting, finance ministers expressed a number of potential downward risks such as persistently high oil prices, widening global imbalances, upward global interest rates trend and potentially adverse effect of Asian flue pandemics.

Speaking on behalf of the group, the Finance Minister of Cambodia, Mr Keat Chhon, said they acknowledge the deepening economic dependence and increasing financial market openness in the region.

In order to achieve sustainable economic growth in East Asia, we need to implement appropriate macro-economy policy mix and accelerate economic structural reforms.

"Given the recent spike in oil prices, we strongly urged for swift actions both on demand and supply side to stabilise the oil market and underscored the need for enhancing dialogue between oil producing and consuming countries to improve market information and transparency," he said.

Answering queries, the Korean Finance Minister, who is co-Chair of Asean+3, Dr Han DuckSoo, said, "There has been no move to make India part of this group. We will continue to have this framework and deputies will study if it was necessary to induct India into the group."

MOST DEVELOPED REGION

The Chinese Finance Minister, Mr Jin Renquing, said that China believed in multi-lateralism and favoured regional investment arrangements. However, an ideal situation where there is perfect harmony is a long way to go. Asia and East Asia have emerged as the fastest growing economies in the region and have high forex resources and have the capability to be most developed region in the world.

The Japanese Finance Minister, Mr Sadakazu Tanigaki, said they would build on the Ching Mai Initiative and the Asian Bond Market Initiative for regional cooperation and a task force created to address regional imbalances.

ASIAN TIGERS

When queried about the East Asian currency turmoil, and if it was appropriate to refer to them as East Asian Tigers, the Malaysian Finance Minister, Mr Tan Sri Nor Mohammed Yakcop, said several countries in the region, which witnessed over double-digit growth were referred to as the East Asian Tigers. But then they went through a tough phase and have now emerged much stronger.

Their growth is such that they are now growing at much faster rate and India, China and Brazil have joined this group.