The 19th World Economic Forum on East Asia closed with participants underscoring the need for Asia’s leaders to take a bigger role in world affairs, including discussions on a global financial architecture and international trade. The region has recovered swiftly from the global economic crisis, but the challenges remain complex and connected, and Asia is still vulnerable to global risks. “We talk about the shift of economic gravity towards Asia, but with greater economic reputation should come greater responsibility,” Indonesian Trade Minister Mari Elka Pangestu said. Six members of the G20 come from East Asia, so the issues that matter most to developing countries and the region in particular should be on the table in G20 meetings.

The widening global skills gap and talent shortage must be urgently addressed through collaboration between industry and educational institutions, and between the private and public sectors, said business, government and university leaders.

“There is a global crisis in education, not just in Asia,” warned David Thai, Founder, Chief Executive Officer and Chairman of the Board of Viet Thai International Joint Stock Company, who is a World Economic Forum Young Global Leader. Said James T. Riady, Chief Executive Officer of Lippo Group in Indonesia: “Nation building is about developing our human resources. The people are the most important. But in human resources development, we are falling behind. We are doing a poor job of addressing the knowledge and skill gaps.” 

Twelve global companies have joined with the Government of Vietnam to launch a public-private task force to advance sustainable agricultural growth in the country. Developed through discussions of the Forum’s New Vision for Agriculture Initiative, the task force will take an innovative approach to improve food security and agricultural sustainability nationwide. As the first of its kind in Vietnam, the task force will work to coordinate and leverage public and private sector investments in agriculture to increase high-quality production while benefiting farmers. The task force will operate both on a strategic level, exchanging best practice and addressing policy issues and on an operational level, working to scale effective initiatives by combining public and private sector capacities. 

Asia needs to create new business models for clean and inclusive growth, and the preservation of natural resources, according to business and government leaders at the World Economic Forum on East Asia. Collaboration should include incentives and subsidies for research and development in green technologies, greater cooperation among Asian countries in speeding up approval of green goods and services, and changing the mindset of consumers and employees on energy use and conservation.

The business representatives on the panel praised the efforts of Korea, Vietnam and other Asian governments, but said much more needs to be done because the challenges are simply too large. “Most Asian countries already have legislation in place, but enforcement and mindset change are needed,” said Frans Muller, Member of the Management Board of German retailer METRO and Co-Chair of the World Economic Forum on East Asia.

“Green growth is not just an option,” said South Korean Deputy Minister of Environment Yoon Jong-Soo. “It is the new paradigm that the world must be committed to.” Korea made the shift in 2008 when it placed the environment at the centre of economic development and made green industries its new engine of growth. The country will allocate 2% of GDP every year on research and development and incentives for businesses and consumers.

“A truly new opportunity has dawned on East Asia and so it must take a greater role in global governance,” Nguyen Tan Dung, Prime Minister of Vietnam told more than 400 of Asia’s leading decision-makers at the inauguration of the 19th World Economic Forum on East Asia in Vietnam. The region has recovered swiftly from the global economic crisis, he said, but it must work to turn recovery into economic growth that is sustainable, equitable and helps to solve the problem of climate change.

Optimism and confidence characterized the remarks of leaders at the meeting – among them Prime Ministers Bouasone Bouphavanh of Laos, and Samdach Akka Moha Sena Padei Techo Hun Sen of Cambodia, along with Kiat Sittheeamorn, President of Thailand Trade Representative, and Wang Zhizhen, Vice-Chairwoman, National Committee of the Chinese People's Political Consultative Conference (CPPCC), People's Republic of China.

Deepening and widening regional integration is critical to strengthening the stability and resilience of East Asia’s economies in the face of mounting global risks, particularly the possibility of another financial crisis, according to business and government leaders in a panel session on the opening day of the 2010 World Economic Forum on East Asia.

While East Asia has weathered the global economic crisis well, it is crucial that countries take coordinated steps to ensure that the region is in an even better position to withstand further turmoil.

"The spirit of open regionalism is very important,” said Donald P. Kanak, Chairman of Prudential Corporation Asia in Hong Kong, in the session which focused on how East Asia is responding to global risks. “If there is anything we have learned, it is that the spirit of open trade and open capital has made [East Asia’s strong growth performance] possible."

Prime Minister Abhisit Vejjajiva of Thailand, told participants that his country is swiftly moving forward after the disruptions of the violent opposition protests in April and May. “I am open to have early elections, but those elections must be helpful to reconciliation,” he declared.

In a special update session on Thailand, moderated by Klaus Schwab, Founder and Executive Chairman, World Economic Forum, the prime minister called on everyone in Thailand, including the Red Shirt protesters, to engage with the government in its efforts towards national reconciliation. If the opposition joins in, he said, most of the issues concerning the constitution, the media and the divisions in society can be settled.

The Forum's Enabling Trade in the Greater ASEAN Region was launched ahead of the World Economic Forum on East Asia 2010. The report measures the extent to which ASEAN member countries enable trade. The study finds that inefficient border administration and inadequate infrastructure represent major barriers to trade in the region and affect the competitiveness of ASEAN’s exports by increasing costs and shipping times. Singapore is the world leader in enabling trade; the rest of ASEAN achieves mixed performance. Vietnam is the most improved ASEAN member over the past year thanks to better market access. Trade facilitation is key for achieving the ASEAN Economic Community by 2015.