World Economic Forum on East Asia ends with shaping of G20 agenda
East Asia can drive the critical post-crisis structural reform of the global economy, business, government and civil society leaders participating in the 18th World Economic Forum on East Asia agreed at the closing session of the two-day meeting. Next year, the Republic of Korea will assume the G20 chair, which has become the main forum for addressing global economic challenges. “For the time being, the G20 is for reactive purposes, with the financial markets still in shambles,” said Ahn Ho-Young, G20 Sherpa and Deputy Minister for Trade of Korea. But “moving on, there will be other post-crisis management issues on which G20 members will have to cooperate.”

During the session, three of the meeting Co-Chairs reviewed some of those priorities, including rebalancing the global economy, devising ‘exit strategies’ from the huge public investments that have been made in recent months to stimulate economies around the world, developing social safety nets to promote domestic consumption in high-saving economies such as China, examining the potential of shaping a coordinated approach to interest rate and currency management, and alleviating the poverty that affects half of the world’s population.
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Stimulating Trade, Stemming Protectionism
Global trade tumbled with the onset of the global financial crisis. In the 1930s, countries went protectionist, and the result was the Great Depression. Today, there are also signs that many countries are infecting stimulus plans with buy-local and nationalistic provisions. How should Asian leaders counter this and ensure open trade? The best way to stem protectionism would be to conclude the WTO’s Doha round. But it is not clear how much political will there is to get there. On one hand, 80% of the issues have been already resolved. But on the other, the talks have been going on for eight years, and there is still no end in sight.
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Beyond crisis, East Asia’s middle-class consumers to drive new growth
In the medium to long term, the growing ranks of middle-class consumers in East Asia, particularly in the emerging provinces of China, will continue to drive new growth in the region, business and government leaders at a plenary session on the second of the two-day 18th World Economic Forum on East Asia agreed. “The young, middle-class population will be the driving force in Asian countries,” Hoang Trung Hai, Deputy Prime Minister of Vietnam, said. The arrival of a billion more middle-class consumers will speed up the shift of East Asian economies from focusing on export-led development to more consumption-driven growth. “Asian countries will have to adjust their export-led model to reduce dependence on the global economy,” he added.
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Asia relies on green initiatives for future growth
 
“We believe that a strong economy and a clean environment are not mutually exclusive, and that Korea has to take an active part in tackling climate change,” Han Seung-Soo, Prime Minister of the Republic of Korea, told 350 participants from 35 countries at the 18th World Economic Forum on East Asia today. “Korea recognizes the symbiotic relationship between economic growth and environmental sustainability.” The country has proclaimed low-carbon green growth as its new national vision.

China is also counting on environmental initiatives for future economic growth as well, said Victor L. L. Chu, Chairman and Chief Executive Officer, First Eastern Investment Group, Hong Kong SAR. “In terms of energy intensity, which is the amount of energy required to generate one unit of GDP, China has dropped 75% over the last 20 years and is still looking very aggressively to achieve more efficiency. Nearly 40% of China’s 4 trillion renminbi stimulus package is green project related.” He added that “China, Korea and Japan can work together to find some win-win solutions for us in the region and on a global basis.”
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 Highlights from the meeting:  Thursday 18