Asia’s Responses to Financial and Economic Crises “A New Era for Coexistence in Asia”

Contents of My Presentation 1. Where are we in the global capitalism? 2. Asian Values and Spirits － “Coexistence” 3. High Economic Potential in Asia ４． Promoting Regional Cooperation ＆ Integration

Where are we in the global capitalism? Is it just on the way for adjustments? or Does 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) 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) Baien MIURA (Philosopher, in Edo- period) Economy is to make “righteousness” an “advantage” for all. J. M. KEYNES (Economist in the 20 th Century) Economics is Moral Science, not Natural Science, with Self- Examination and Value Judgment.”

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) USAASIAEU27 Population4.5% 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 Rate6.1% 4.8% 5.6% Source : IMF, DOT, Bloomberg Data : Personal Expenditure and P. E. Growth Rate (2006)

Export Ratio within the Region (2006,%)

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 Climate Change Military Attack Infectious Disease Terrorism Chemical poison Nuclear Proliferation Global Poverty Food /Energy Crisis Economic Stability

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” 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