ID :
66434
Thu, 06/18/2009 - 17:57
Auther :
Shortlink :
https://oananews.org//node/66434
The shortlink copeid
Asia should create monetary fund, S. Korea's business chief says
By Kim Deok-hyun
SEOUL, June 18 (Yonhap) -- Thirteen East and Southeast Asian countries must create a regional monetary fund to shield themselves from the possibility of another global financial crisis, the head of South Korea's biggest business lobby said Thursday.
Cho Suck-rai, chairman of the Federation of Korean Industries, also suggested
that the 10-member Association of South East Asian Nations (ASEAN) along with
South Korea, China and Japan should form an economic bloc to reshape their
export-dependent economic models.
"Asian nations have become the biggest scapegoat for the current global financial
crisis, though they have made few missteps in terms of economic policy," Cho said
at the World Economic Forum on East Asia.
"To prevent the Asian economies from being rattled by external factors, they
should create an Asian Monetary Fund to reduce their excessive reliance on
external factors in terms of both finance and the real economy," Cho said.
An Asian Monetary Fund, modeled from the International Monetary Fund (IMF),
should be created for Asian nations to strengthen their economic and financial
fundamentals, he added.
A regional monetary fund in Asia was first proposed by Japan in 1997 in the face
of the Asian financial crisis.
The United States has reacted coolly to such proposals, as a regional fund would
threaten the economic influence of the U.S. in Asia, along with that of the
Washington-based IMF.
But the idea of creating an Asian Monetary Fund got a boost in May when the ASEAN
members and three economic powers in East Asia agreed to set up a US$120 billion
emergency fund for use in case of an economic meltdown.
To form an Asian Monetary Fund, nations in Asia should resolve differences on how
to set up a regulatory system and who should have a leading role in operating the
fund, analysts say.
Cho also urged Asian nations to foster the Asian bond market and devise
mechanisms to stabilize the East Asian financial sector and navigate through the
current crisis.
SEOUL, June 18 (Yonhap) -- Thirteen East and Southeast Asian countries must create a regional monetary fund to shield themselves from the possibility of another global financial crisis, the head of South Korea's biggest business lobby said Thursday.
Cho Suck-rai, chairman of the Federation of Korean Industries, also suggested
that the 10-member Association of South East Asian Nations (ASEAN) along with
South Korea, China and Japan should form an economic bloc to reshape their
export-dependent economic models.
"Asian nations have become the biggest scapegoat for the current global financial
crisis, though they have made few missteps in terms of economic policy," Cho said
at the World Economic Forum on East Asia.
"To prevent the Asian economies from being rattled by external factors, they
should create an Asian Monetary Fund to reduce their excessive reliance on
external factors in terms of both finance and the real economy," Cho said.
An Asian Monetary Fund, modeled from the International Monetary Fund (IMF),
should be created for Asian nations to strengthen their economic and financial
fundamentals, he added.
A regional monetary fund in Asia was first proposed by Japan in 1997 in the face
of the Asian financial crisis.
The United States has reacted coolly to such proposals, as a regional fund would
threaten the economic influence of the U.S. in Asia, along with that of the
Washington-based IMF.
But the idea of creating an Asian Monetary Fund got a boost in May when the ASEAN
members and three economic powers in East Asia agreed to set up a US$120 billion
emergency fund for use in case of an economic meltdown.
To form an Asian Monetary Fund, nations in Asia should resolve differences on how
to set up a regulatory system and who should have a leading role in operating the
fund, analysts say.
Cho also urged Asian nations to foster the Asian bond market and devise
mechanisms to stabilize the East Asian financial sector and navigate through the
current crisis.
