KEY ISSUES FACING ASIA A view from the UK Lord Carey

CAUSES OF ECONOMIC CRISIS  the global crisis did not happen because bankers and others were incompetent, lazy, mindless or wicked. The global crisis was caused by something far more difficult to analyse, which we can only describe as ‘moral failings’

HUBRIS  David Milibrand, Newsweek calls the situation a ‘Financial 9/11’.  The cost has been severe around the world. Every nation has been affected, markets have shrunk and in some cases collapsed. Unemployment is high everyway and poverty is a reality even in economies that up to now have been strong.

FOUR-FOLD CHALLENGE  Reform our international financial systems.  rebalance the State and markets to create a fairer and equal distribution of rewards. There has to be more careful policing of the markets with tougher regulations that protect customers.

RESIST PROTECTIONISM  all attempts to move back into forms of protectionism that preserve ‘us’ rather than ‘them’ are as immoral as the forces that led us into the present mess in the first place.

POWER  The weakening power of America and the growing strength of China is an unsettling factor in geo-political terms and should it lead to a weakening of globalisation, will undoubtedly affect us all for the worse. But with power must go responsibility and we all trust that China’s growing power – together with the power of ASEAN – will blossom into good stewardship for the health and wealth of the world as a whole

ENVIRONMENT  Nations must share the blame for the degradation of our fragile planet as we recognise that economic growth has deleterious implications for the natural world.

FOUR CHALLENGES  ASEAN well positioned to take advantage of the present crises and grow today.  It must act as a body and behave as a family.