PRESS CONFERENCE ON 1998 ECONOMIC AND SOCIAL SURVEY OF ASIA AND PACIFIC REGION

Press Briefing

PRESS CONFERENCE ON 1998 ECONOMIC AND SOCIAL SURVEY OF ASIA AND PACIFIC REGION

Despite the current preoccupation with the financial crisis affecting several Asian countries, the turmoil should not be seen as undermining the commitment to the fundamental objective of longer-term development, Anwarul Chowdhury, Permanent Representative of Bangladesh, said at a Headquarters press conference this morning. "That longer-term objective is growth with equity", he added.

Mr. Chowdhury was launching the 1998 Economic and Social Survey of Asia and the Pacific on behalf of the Chairman of the fifty-third session of the Economic and Social Commission for Asia and the Pacific (ESCAP), Bangladesh Finance Minister S.A.M.C. Kibria. It was the first time the Asia-Pacific Survey was launched at Headquarters.

He said that while the Survey mentioned the downturn in the economies of some south-east and east Asian countries, it also reported that the economies of south and south-west Asia had enjoyed robust economic growth. "It also mentions that no major deceleration is anticipated in respect of China", he added.

According to the report, he said, the region's least developed countries had shown a general strengthening of economic growth in 1995-1996 and had remained strong in 1997. "The Pacific island economies, which form part of this region -- and they have diverse structures and diverse abilities to respond to internal and external shocks -- have not been directly affected by this financial crisis and turmoil in the region, but their performance remained unsatisfactory and it is expected that it will continue like that in the current year", he said.

He said that according to the Survey, the crisis had focused attention on two crucial areas: the establishment of an appropriate exchange rate regime and the need to overcome weaknesses in the domestic financial sector. In response to the crisis, the Survey proposed that regional level consideration be given to the setting up of an Asian fund to supplement the International Monetary Fund (IMF); that regional currencies be used for intra- regional trade; that an insurance scheme be established to deal with cross- border financial claims; and that cooperation in more effective management of financial sector institutions be undertaken.

He said that among national level policy responses to the financial crisis, the Survey placed high priority on enhancing agricultural productivity; human resource development; development of small- and medium- sized enterprises; providing education for women; and enhancing health care for children.

ESCAP Press Conference - 2 - 13 April 1998

Asked by a correspondent how long China could remain in isolation if the crisis deepened or continued, Mr. Chowdhury said that according to the Survey, it was expected that China would not be seriously affected by the turmoil and would continue with its rate of growth. "It says that China will suffer only moderate slowdown in the rates of growth", he added.

A correspondent asked how the survey related mainland China and Taiwan, province of China. Mr. Chowdhury said, "When I said China, I meant the People's Republic of China. But the Survey has also covered the Taiwan province of China and it is expected that this same moderate slowing down of growth is expected in the Taiwan province of China without having a major impact."

Another correspondent asked whether the impact of the crisis on the economy of Japan, as a major economic player in the region, had been considered. He said the Japanese crisis was serious, adding, "I believe that the Japanese Government and the other partners are addressing the problem from their point of view. But at the same time I also believe it is important that Japan also play a role as a regional economic power."

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