Statement by His Excellency Mr. Don Pramudwinai Ambassador and Permanent Representative of Thailand to the United Nations on behalf of the Association of Southeast Asian Nations (ASEAN) at the “Interactive thematic dialogue on the world financial and economic crisis and its impact on development” at the 63rd session of the General Assembly New York, 25 March 2009
1. I have the honour to speak on behalf of the ten Member States of the Association of Southeast Asian Nations (ASEAN): Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Viet Nam.
2. ASEAN commends the President of the General Assembly for organizing this very important meeting on a very important topic that affects all of us. ASEAN attaches great important to strengthening international cooperation to address the current financial and economic crisis and alleviate its impact on development. Therefore, ASEAN warmly welcomes an opportunity to participate in today’s debate, which we believe is very timely. We also read with interest the preliminary report of the “Stiglitz Commission”, whose recommendations can be useful, not only at our discussion here, but also surely at its intended destination in June when the General Assembly convenes the United Nations Conference on the world financial and economic crisis and its impact on development.
3. ASEAN shares the views expressed by all panelists a while ago that the current global economic crisis demands a concerted and coordinated global response. Due to the closely interconnected nature of the world economy, no country is immune to this crisis and no country can weather it alone. We are, after all, in the same boat. What started off as a financial crisis in developed countries has now become a full-blown economic crisis in all corners of the world to an inconceivable extent. So far, extensive damages in financial and real sectors of both developed and developing countries are more than visible as they are painfully felt. Developing countries, especially countries that are heavily reliant on export and foreign investment for their growth, have been adversely affected. Sharp contraction of demand and trade flows has already generated massive unemployment in these economies. If not urgently addressed, the current financial and economic crisis could have serious social and political implications on countries around the world.
4. ASEAN believes that a strong and concerted regional cooperation is essential to reinforce and complement various policy measures being undertaken at the national level. This is a lesson that we learnt from the financial crisis that affected our region in the late 1990s. Recognizing the seriousness of the current crisis and the need to act decisively and collectively to address it, ASEAN Leaders met at the 14th ASEAN Summit in Thailand between 28 February and 1 March 2009 and issued a Statement on the Global Economic and Financial Crisis. The Statement encapsulates ASEAN’s views, assessments and commitments regarding the current crisis. According to this Statement, ASEAN Leaders noted that ASEAN’s economic fundamentals remain sound as a result of structural reforms undertaken since the 1990s crisis. However, the deepening global economic downturn, coupled with heightened risk aversion in financial markets, has adversely impacted trade and investment in the region; and thus, posing significant downside risks to regional economic growth with adverse impacts on 570 million people living in the region. ASEAN Leaders stressed the necessity of proactive and decisive policy actions to restore market confidence and ensure continued financial stability to promote sustainable regional economic growth as well as welcoming expansionary marcroeconomic policies undertaken by each ASEAN Member State to stimulate domestic economy of each country. ASEAN Leaders stressed the importance of coordinating policies and taking joint actions at the regional level, and reaffirmed their commitment to push forward the regional economic integration process to maintain its resilience while remaining open to global and regional trade. By deepening integration, ASEAN is determined to ensure the free flow of goods, services and investment, and freer flow of people and capital in Southeast Asia.
5. ASEAN is also strengthening cooperation with East Asian neighbours to ensure that this region is better equipped to collectively overcome the challenges brought about by the current and future crises. ASEAN believes that, only by working together, East Asian countries would be able to make the most use of their collective wisdoms and capability. In this spirit, ASEAN Leaders welcomed the recent agreement by the ASEAN Plus Three Finance Ministers to increase the size of the Chiang Mai Initiative Multilateralization regional swap arrangement from 80 billion dollars to 120 billion dollars, and to develop a more robust and effective surveillance mechanism to support the operation of this financial mechanism. It is the strong hope of ASEAN that this landmark arrangement in East Asia will be operationalized as expeditiously as possible, and that it could serve as a good example of regional financial cooperation. The upcoming meetings between ASEAN Leaders and regional partners from China, Japan, Republic of Korea, India, Australia and New Zealand, which is scheduled to be held in Thailand in the middle of April, would be a good opportunity for countries across East Asia to further strengthen regional cooperation and enhance coordination at the regional level to tackle the current economic crisis and alleviate its impact on development.
6. ASEAN recognizes the need for a stronger and more coordinated response at the national, regional and global levels. In this regard, ASEAN believes that the meeting of the General Assembly today will provide a critical impetus and guidance to other international meetings which are scheduled to take place in the near future, for example, the G20 Summit in London, the Special High-level Meeting of the ECOSOC with the Bretton Woods Institutions, the World Trade Organization and UNCTAD, and the upcoming UN Conference on the world financial and economic crisis and its impact on development in June. ASEAN will actively contribute in all these meetings. At the same time, we could not stress enough the importance of synergies of all the discussions on the issue of financial crisis.
7. Much has been talked about the upcoming G20 Summit in London. ASEAN attaches importance to this London Summit and will participate actively in the meeting to ensure that the voice and concerns of developing countries would be duly reflected and taken into account in this important gathering. ASEAN believes a more coordinated action by developed and developing countries to restore financial stability and ensure the continued functioning of financial markets is critical. ASEAN believes that the time has come to undertake a bold and urgent reform of the international financial system to achieve a more comprehensive, equitable and inclusive system that takes into account interests and voices of emerging and developing economies. At the same time, the existing financial and regulatory framework also needs to be strengthened. ASEAN will continue to stand firm against protectionism and will intensify efforts to ensure a strong Doha Development Agenda outcome.
8. Last but not least, ASEAN would like to strongly emphasize that, while great attention should be given to fix the current global financial and economic crisis and restore market confidence, the international community should not lose sight of the equally important issues of sustainable development, climate change, food and energy security, and the attainment of the internationally agreed development goals, including the Millennium Development Goals (MDGs). These are issues that directly affect the lives and livelihoods of people around the world. From our first-hand experience of the 1990s crisis, ASEAN knows well that there is no room for complacency because every financial and economic crisis has a human face. And that is why ASEAN believes that this debate today is very crucial.
For further information, please contact the Press Division, Department of Information, Ministry of Foreign Affairs, Tel.02-6435170, Fax.02-6435169, E-mail: div0704@mfa.go.th