Asia’s Responses to Financial and Economic

Crises“A New Era for Coexistence

in Asia”

Asia’s Responses to Financial and Economic

Crises“A New Era for Coexistence

in Asia”

Contents of My Presentation

Contents of My Presentation

1. Where are we in the global capitalism?1. Where are we in the global capitalism?

2. Asian Values and Spirits －“ Coexistence”2. Asian Values and Spirits －“ Coexistence”

3. High Economic Potential in Asia3. High Economic Potential in Asia

４． Promoting Regional Cooperation ＆ Integration ４． Promoting Regional Cooperation ＆ Integration

Where are we in the global capitalism?

Where are we in the global capitalism?

Is it just on the way for adjustments?　　　　　　　　　　 orDoes it itself include many essential problems to be addressed ? Does it need drastic changes to make the world in order? ? ? ?

What are economic activities for?(1)

What are economic activities for?(1)

• Is the Market Economy the most effective system to bring growth with “the invisible hand”?

• Is it to maximize short-time profits and interests at the sacrifice of others (human life, environment, developing countries, etc.)?

Answer is “NO!”

But we are doing “YES”

What are economic activities for?(2)

What are economic activities for?(2)

Baien MIURA (Philosopher, in Edo-period) Economy is to make “righteousness” an

“advantage” for all.

J. M. KEYNES (Economist in the 20th Century)

Economics is Moral Science, not Natural Science, with Self-Examination

and Value Judgment.”

Asian Values and Spirits“Coexistence”

Asian Values and Spirits“Coexistence”

• European Values and Asian Values• “He is rich who has few wants.”• “Everything in moderation” • “Mottainai Culture”

“Is Coexistence” contradictory to“ Competition”?

Convey Wisdom of Asia to the World

Economic Indicators (2007)

Economic Indicators (2007)

USA ASIA EU27

Population 4.5% 48.5% 7.4%

GDP (Market) 25.5% 22.8% 31.0%

GDP( PPP) 21.3% 30.1% 22.7%Nominal Growth Rate

4.9% 11.7% 5.5%

Personal Expenditure

30.4% 19.2% 31.5%

P.E. Growth Rate 6.1% 4.8% 5.6%Source : IMF, DOT, BloombergData : Personal Expenditure and P. E. Growth Rate (2006)

Export Ratio within the Region (2006,%)

Export Ratio within the Region (2006,%)

High Economic Potential in Asia

High Economic Potential in Asia

•Boost domestic demand and economic growth potential by increasing personal expenditure and export of “Final Goods” within Asia

Reduce reliance on US & Europe

• Invest infrastructure, environment, water and energy to improve human’s life

•Provide safety nets to eliminate anxiety for future

Economy is associated with global threats

Economy is associated with global threats

Climate Change

Military Attack Infectious Disease

Terrorism

Chemicalpoison

NuclearProliferation

Global Poverty

Food /Energy Crisis

Economic Stability

Conclusion - Risk and Opportunity

Conclusion - Risk and Opportunity

• →Strengthening international financial institution (IMF&ADB) , regulation and surveillance function

• →Strengthening the Chiang Mai Initiative and other financial cooperation scheme

• → Avoid protectionism and show an open market • →Increase personal income and domestic

demand • → Promoting sustainable development addressing

global issues such as climate change, pandemic disease, food and energy crisis, etc.

• →What should Japan respond to the crisis?

Conclusion – “Coexistence” Conclusion – “Coexistence”

With spirit of “Coexistence” in the country, the region and the world

Create vast majority of middle class

　 for prosperity and stabilization of society

Enhance Regional Cooperation and Integration

Thank you for your attention