Demonstrate vision and resolution

Chodechai Suwanaporn is right in asserting that the global economy still faces risks and uncertainty and in concluding that we are not out of the woods yet.

Indeed, the recovery from the global economic and financial crisis remains fragile. Growth is expected to reach only 2.5 per cent in 2012. Severe fiscal austerity and wage compression have seriously affected growth, without bringing reduced fiscal deficits, job creation and renewed confidence in the financial markets. All these aspects are well known in Asia and Europe.

At the 7th Asia-Europe Meeting (Asem) on the International Financial Situation (Beijing, October 24, 2008), leaders expressed concern over the impact of the international financial crisis on the global economy and in particular, the severe challenges it posed to financial stability and economic development of countries in Asia and Europe. Leaders believed that authorities of all countries should demonstrate vision and resolution and take firm, decisive and effective measures in a responsible and timely manner to rise to the challenge of the financial crisis.

When the 48 current Asem leaders meet on November 5 and 6 this year in Vientiane for the 9th Asem Summit, with the overarching theme “Friends for Peace, Partners for Prosperity”, it will be interesting to see how they intend to implement their earlier  specific commitments to make full use of Asem in order to effectively monitor, prevent and respond to financial risks to ensure sustained, stable and sound economic growth.

Ioan Voicu

Bangkok