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A new way, order necessary
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Sun, Oct 26, 2008
NST
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iv id="adwrapper">This is the most important question to come out of the just concluded Asia-Europe Meeting.
Nov 15 could be a defining date as leaders of 20 of the world's most important economies will meet at the Washington Summit to find solutions to the unprecedented financial meltdown across the globe.
Sustainable development, energy and food security, climate change, regional conflicts, cultural heritage, human rights and North Korea's nuclear programme were "by-the-way" discussions at the various plenary sessions or bilateral meetings.
Every leader at the 7th Asem was more concerned with the turmoil in the financial sector, which has forced leading economies to pump in billions to shore up their banking system, and Asian economic powerhouses Japan, China and South Korea scrambling to find ways to protect the real economy so that factories do not collapse and jobs are lost.
Even before Asem started, Asean leaders and its East Asia partners -- China, Japan and South Korea -- had a meeting and decided to speed up the establishment of a US$80 billion (RM286 billion) fund to fight off currency speculators. The Asean+3 also decided to have a meeting of their finance ministers and central bank governors in Manila next month to come up with concrete proposals on how to handle the financial crisis.
The Asean+3 leaders will have their summit in Bangkok in December to discuss the Manila proposals but before this comes to pass, Malaysia and its fellow Asean members will have to monitor closely the discussions in Washington.
The Washington Summit could turn out to be a watershed in the global financial system, or fizzle out if the US is allowed to bulldoze its way.
French President Nicolas Sarkozy hinted as much when in his opening address at Asem openly sought Asia's backing.
Speaking as the current European Union president, Sarkozy said: "When it comes to the Washington Summit on Nov 15, Europe is going to present a united front and we will submit well-considered proposals developed together.
"Europe would like Asia to support that effort, so that together on Nov 15 we can tell the whole world that the causes of this unprecedented crisis will never happen again."
The Europeans want the Bretton Woods agreement, which has governed the global financial system since the end of World War 2, replaced but they expect fierce resistance from the US.
The US, which has much to lose if there's a real overhaul of the world financial system where the greenback is king even when the country is in dire straits, has predictably taken a cautious stand, singing the same old tune of the need to commit to free markets, free enterprise and free trade.
China will be at the Washington Summit, as will Japan, India, South Korea and Saudi Arabia. Asean will be "represented" by Indonesia, a G20 member. Six Asian countries are represented but it is important that there will be one united Asian voice, just as there will be one united European voice.
Chinese Premier Wen Jiabao said in his opening remarks at Asem that he had heard Europe's repeated calls for solidarity. Hopefully, this would translate into one strong Asian stand on the financial crisis.
Prime Minister Datuk Seri Abdullah Ahmad Badawi said he believed Europe and Asia's opinions would be heard, especially since the opinions were discussed in depth at Asem.
Free markets, free enterprise and free trade are fine. Malaysia has gained from these, as have its Asean partners. But it was also the free and unregulated or under regulated financial system in the US that now has the whole world facing a recession. The US, with a new president waiting in the wings, must be made to see that a new way, a new order is necessary.
New Straits Times/Asia News Network
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