New opportunities for Asia

Asia is the most dynamic continent in the world today. It is home to the two most populous countries in the world. Asia has an almost countless number of ethnicities and cultures. The region is economically very active, with a number of countries having 'Asian Tiger' status and others moving rapidly towards developed status. The rest of the world is scrambling to trade with Asia and gain an investment foothold there.

But most Asian countries still do need the assistance and cooperation of the international community to accelerate their economic growth. They have a healthy dialogue and interaction with major donor countries, international financial institutions and lending agencies.

However, there is a widespread notion that these financial institutions impose certain conditions on countries that seek their assistance. In some instances, these demands and conditions are clearly politically motivated, probably at the insistence of certain powerful nations. This is not a healthy trend, considering the effect such conditions could have on the people of countries seeking assistance.

This point was raised on Thursday by President Mahinda Rajapaksa, when he observed that financial institutions that play an increasing role in the Asian region should be more concerned about the burdens they impose on the masses through conditions for assistance and elimination of poverty.

Addressing the eighth Ministerial Meeting of the Asia Cooperation Dialogue (ACD) in Colombo, President Rajapaksa stressed that Asian countries should not be held ransom to such conditions.

Some of these demands and conditions have little to do with the grant of aid and loans. Several Western countries which did not appreciate Sri Lanka's victory over terrorism tried to block aid to Sri Lanka in the international arena, citing human rights concerns. Sri Lanka was able to successfully defend itself at the UN against these charges, with the help of many friendly nations including China, India and Pakistan. Sri Lanka also successfully negotiated a US$ 2.5 billion facility with the International Monetary Fund, despite many attempts to deny such aid.

These instances show that enhanced cooperation among developing countries could be one answer to the dominance of certain international fora by powerful Western countries. The ACD is one such forum which shows the unity of Asian countries. The South Asian Association for Regional Cooperation (SAARC) has also initiated regional development fund and a food bank that will reduce the dependency on other nations. Elsewhere in Asia, ASEAN, ARF, BIMSTEC and other bodies are reaching a new level of cooperation among Asian countries. As the President noted, Asia should strive to regain its independence that is challenged on many fronts and across many borders.

'Trade, not aid' is a mantra in modern economics. But there are hurdles to the free flow of trade. Many developed countries still practice protectionist measures that keep out goods from the Third World. As President Rajapaksa pointed out, these countries and institutions should recognize the many disadvantages caused by subsidies implemented by the advanced economies while preaching to the developing countries to move away from subsidies. Asian economies have also been hit hard by the recent economic meltdown in the West. In the President's words, "our economies are today facing hardship due to the problems caused by others who should share the burdens of recovery". Asian countries and many others are today carrying the burden caused by poor regulation and the encouraging of greed in dominant economies of the West.

As the President emphasized, Asian countries should view this situation as a challenge and an opportunity to strengthen intra-regional trade and cooperation. The very theme of the eighth Ministerial Meeting of the ACD "Spirit of Asia: Global Economic Recovery and Development Prospects" reflects this viewpoint. There should be a better dialogue among the various Asian regional fora and Asian countries should raise one voice on the international stage, i.e at the UN. It is also vital to increase people-to-people contact in Asia, which should eventually aspire to open all borders and even move towards a common currency. The proposed Pan-Asian rail network, of which Sri Lanka is also a member, is a step in the right direction. In the meantime, air and sea links should be developed further.

Asia still faces many other challenges besides development. Although Sri Lanka has successfully crushed terrorism, many other Asian countries are grappling with it. They are already looking at Sri Lanka as a role model in this regard. Asian countries must share intelligence and work together to end this grave threat to civilization. Poverty and malnourishment, food insecurity, the drugs trade, trafficking in women and children, lack of educational opportunities and the use of children for labour and conflict are among the myriad other issues confronting the region. These are huge challenges that require a concerted effort on the part of all Asian nations but they can all be surmounted with the right leadership and attitudes.