Regional Cooperation in Asia Remarks of H.E. Tarrin Nimmanahaeminda,Minister of Finance of Thailand at The Third Asia-Europe Finance Ministers’ Meeting

Regional Cooperation in Asia
Remarks of H.E. Tarrin Nimmanahaeminda,
Minister of Finance of Thailand
at
The Third Asia-Europe Finance Ministers’ Meeting
Kobe, Japan
14 January 2001

Mr. Chairman,

It is a great pleasure and privilege for me to participate in the Third ASEM Finance Ministers’ Meeting in Kobe. I would like to join other ASEM finance ministers in extending our sincere thanks to you and the Government of Japan and to the people of Kobe for the warm hospitality and the excellent arrangements made for this meeting.
After the financial and economic crisis broke out in Southeast Asia in 1997, several regional forums and initiatives have been established in order to promote regional surveillance, prosperity and stability. Since then, many countries realized the urgent need of moving forward into the different aspects of regional cooperation, such as regional financing and coordination, international financial architecture forum, and reform of the regulatory and supervisory framework.
For the past three years, Thailand has extensively engaged herself in regional financial cooperation in four significant groupings. Let me begin with cooperation among member countries of ASEAN, which includes various forums in each of its pillars, such as the ASEAN Summit Meetings, the ASEAN Finance Ministers’ Meetings, and the ASEAN Economic Ministers’ Meetings. As a matter of fact, regional financial cooperation is not limited to the ten ASEAN countries, as manifested by the Chiang Mai Initiative, which is a specific cooperation between each member of ASEAN plus China, Japan and Korea, now known as “ASEAN +3”. This initiative is a monetary cooperation through which countries in financial difficulties will be able to obtain assistance from their neighbors through swap arrangements. I do believe that such financial cooperation amongst countries in the region will be effective in dealing with future currency and financial difficulties in the region. Also, future crises in ASEAN countries can be averted if member countries would make effective use of the Early Warning System, which has been put in place with assistance from the ADB. Discussion has also begun to extend the ASEAN Early Warning System to include the new “plus three” members as well.
Covering 14 countries from Asia-Pacific and North America, the Manila Framework Group is another example of fostering cooperation in the region. Recently, predominant issues discussed by MFG members include international capital movements and the role of regional cooperative financing arrangement. Undoubtedly, this reflects the spirit of the Chiang Mai Initiative in a broader level, in which these close regional financing mechanisms are to be supplementary to existing global financing organizations.
Let me turn to APEC, an even broader organization comprising 21 Pacific Rim countries. Since its conception, Thailand has been an active member, and has participated in its numerous forums. A vast array of issues has been discussed in these APEC forums, such as trade and financial liberalization in the form of the Voluntary Action Plan for Freer and Stable Capital Flows (VAP). Other important issues not only of regional, but also of global concern, include the implementation of codes and standards and the combating of financial crimes such as money laundering. Moreover, several studies have been conducted regarding e-commerce in order to propagate this digital practice to member countries. Finally, as part of preventive measures against future economic crises, the importance of social safety nets is especially stressed. In this light, Thailand has initiated a working group on Pension Fund Reforms. APEC can thus be viewed a working mechanism for fostering regional cooperation of countries in Asia and the Pacific.
Bridging the gap between Asia and Europe is ASEM. Ever since the inaugural summit in Bangkok, there have been numerous forums tackling a wide range of issues, such as public debt management, customs cooperation, and exchange rate regimes.
Let me mention also the importance of the Public Debt Management Forum, which was proposed and accepted at the Deputies’ Meeting in Tokyo last December. The issue, I believe, will pose significant challenges for Asia in the years to come and Thailand is ready to host the first meeting in March or April this year.
Finally, I wish to touch upon the issue of International Financial Architecture. While work in this area has made some progress, particularly the issuance and implementation of codes and standards, much remains to be done, especially the role of the private sector involvement in crisis resolution, the disclosure and monitoring of short-term speculative capital movements, as well as the need to have emerging market economies having greater involvement in the major international institutions to better reflect their concerns.
These issues are very important to Asia, and to other emerging economies around the world, but these are the issues that cannot be achieved by the efforts of Asia alone. However, they can be achieved by the contribution from both Asia and Europe.
Mr. Chairman, regional cooperation will undoubtedly bring greater financial and economic stability to member countries. Countries in close geographical proximity have to learn to cooperate and commit to regional economic integration. This will lead to more market-oriented and more transparent economies; stronger and better-regulated financial institutions; competitive enterprises; and social safety nets will be substantially improved.
I am sure this meeting would provide us with more opportunities to move towards greater inter-regional cooperation and help enhance economic dialogue between the two continents.

Thank you.

[Remarks and Papers]