World Economic Forum on East Asia focuses on leadership in an Asian Century

Business and political leaders participating World Economic Forum on East Asia, which opened here Sunday morning, focused their discussions on leadership in an Asian Century in the first day.

Addressing opening session centering on the topic of "Where is leadership Needed the Most in Asia?", President of the Philippines Gloria Macapagal Arroyo said while East Asia and the world are confronted with the mounting and increasingly complex challenges of globalization, the region's leaders are capable of meeting those tests.

She told participants that the region has any number of able leaders of strong nations, as well as institutions like ASEAN ( Association of Southeast Asian Nations) to provide individual, regional and multilateral global leadership.

The real issue is the rapid economic rise of the region at a time when the global order has undergone enormous swings, such as the rise of China and India, Arroyo said.

The two-day forum has brought together over 300 business, government and civil society leaders from 26 countries to discuss the current challenges facing East Asia.

Under the theme "The Leadership Imperative for an Asian Century," the 16th World Economic Forum on East Asia is being held in partnership with the Singapore Economic Development Board.

Also speaking at the session, George Yeo Yong-Boon, Minister of Foreign Affairs of Singapore, said that the key challenge for East Asia's leaders is to address the issue of urbanization and the growing income inequality between rural and urban areas.

He warned that without global leadership, income inequality would become even more acute. "It is in the cities, where all these problems will be concentrated. It is at that level where leadership will be most critical," he said.

Yeo also stressed the importance of preparing the next generation for globalization. "Countries which pay attention to education and value systems will do well. Those which neglect this area are not in the game," he added.

Kim Byong-Joon, Chairman of the Presidential Commission on Policy Planning in the Republic of Korea echoed Yeo's remarks, saying that income inequality within a country is not just that one country's problem. "This is a global problem that leaders in Asian economies should start to talk about," he said.

Indonesia's Minister of Trade Mari Pangestu said at the same session said that East Asia must continue to contribute to the multilateral trade negotiations under the World Trade Organization (WTO). But the region must also show leadership by managing the proliferation of regional and bilateral free trade agreements. " The business sector must take a leadership role here," she argued, urging ASEAN to concentrate on following through on its integration and community-building commitments.

Meanwhile, Ong Keng-Yong, ASEAN's secretary-general, said "In the coming year or two, you will see the leadership focus on implementation." A critical priority to address income disparities is infrastructure development, he noted.

Speaking from the perspective of a business leader, Carlos Ghosn, Co-Chair of the World Economic Forum on East Asia, agreed that infrastructure, including water, energy and telecommunications is extremely important. In Southeast Asia, he observed, ambitious planning has often led to poor implementation.

"We may have wonderful plans, but the execution is only 5 percent," said Ghosn, who is President and Chief Executive Officer of both Japanese car producer Nissan and French automaker Renault, as well as a member of the Forum's Foundation Board. "The solution is not for government to get out of the way," he said, adding that what is critical is faster action.

According to the forum's organizer, the two-day meeting will explore in depth the many facets of the region's economic, social and political transformation. Through the program pillars -- Asian Leadership, Risk Management, Sustainable Growth and Competitiveness -- the participants will identify the leadership opportunities and challenges that will shape an "Asian Century".

Source: Xinhua