Concluding Statement on the Asia 21 Conference : Minister Yoon Jeung-hyun of Strategy and Finance

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Concluding Statement on the Asia 21 Conference by Minister Yoon Jeung-hyun of Strategy and Finance, Republic of Korea

Concluding Statement on the Asia 21 Conference

Minister Yoon Jeung-hyun of Strategy and Finance
Daejeon, Republic of Korea
July 13, 2010

First of all, it is to my great joy that the Asia 21 Conference has been successfully concluded. I would like to offer my gratitude to Mr. Dominique Strauss-Kahn, Managing Director of the International Monetary Fund, and to the city of Daejeon and its citizens, for their wonderful support.

As you well know, the conference was held to review the ever-expanding role of the Asian economy in the international community, and to discover focal points and formulate policies to sustain such dynamic progress in the future.

The recent economic crisis reminded us of the high degrees of mutual reliance in the global economy. It also brought about recognition that it is necessary to enhance international cooperation to prevent a recurrence of such crisis, and to ensure a sustainable development of the global economy.
The Asian economy has been commended as an exemplary case of economic development, job creation, and poverty reduction in the past few decades. In particular, during the recent economic crisis, the Asian economy has spear-headed the global economic recovery with appropriate stimulus packages and sound macroeconomic conditions. This trend is expected to continue for a while.

Thus, I believe the opportunity the conference has given us, to discuss in depth how the Asian economy can effectively carry out international responsibilities and duties as befitting its expanding economic status, was truly valuable.

As mentioned during the conference, for the Asian region to play a pivotal role in the global economy, it is necessary to enhance domestic demand through continued structural reform, and strengthen international policy cooperation as well as regional collaboration to resolve the global imbalance and establish global financial safety nets.

The G20 Seoul Summit will discuss the framework, financial regulations, IFI reforms, global financial safety nets, and other issues such as development agenda. During the parallel session yesterday concerning financial sector issues, a consensus was reached on the need for global financial safety nets. In addition, effective measures, including the FCL (flexible credit line) to supply liquidity during a systemic crisis were discussed. As for the parallel session concerning the role and relevance of the IMF in Asia, the role of the IMF during the Asian Financial Crisis in the 90s was reviewed, and live discussion on a forward-looking role of the IMF was met with active participation.

I believe these discussions will be of a great help in drawing out specific and practical results at the G20 Seoul Summit.

The recent global economic crisis has caused hardships in many developing and emerging economies. Development gap and poverty situation became worse in some areas. With worsening fiscal conditions, the drive to expand growth engines such as developing human resources and protecting the poor has been significantly limited.

With the importance of developing economies expanding in the global economy, it is essential to secure the capacity and resource of those economies to establish new markets and investment opportunities to maintain growth momentum in the global economy. Reflecting such issues, at the Second Plenary Session yesterday it was discussed about specific measures to transform Asia's low income countries into tomorrow's emerging markets.

The Korean government will consider these constructive measures and the ideas from non-G20 countries, and will present specific policy directions for development agenda at the G20 Seoul Summit.

Also, we believe it is important to strengthen regional economic cooperation and make efforts to expand regional growth engines by investing in infrastructure of developing economies in Asia as well as increase support for building up trade capacity in the region.

Finally, I look forward to strengthening the continued cooperation between the IMF and Asia.

Thank you very much.