December 2

Opening Remarks by Prime Minister Keizo Obuchi

Session I: Assessing the Human Security Dimensions of the Crisis

MODERATOR
Tadashi Yamamoto

PANELISTS
Chia Siow Yue
Kim Kihwan
Akira Kojima
Suchit Bunbongkarn

The Japan Center for International Exchange (JCIE) and the Institute of Southeast Asian Studies (ISEAS) jointly sponsored a two day conference of leading intellectuals to discuss the “human security” challenges stemming from the Asian financial crisis.

The need “to mobilize the diverse intellectual assets and resourcefulness of each country for the peace and prosperity of the Asian region” was stressed by Prime Minster Obuchi in his opening address to the meeting. Noting how the current economic crisis is causing immense social stress and threatening the lives of many people, the Prime Minister further called for “new strategies for economic development which attach importance to human security with a view to enhancing the long term development of our region.” With the region growing increasingly interdependent and more vulnerable to a host of human security problems—environmental degradation, organized crime, migration, terrorism and disease—that do not respect national borders and cannot be tackled alone, Mr. Obuchi argued that the coordinated action of the international community is essential. To be truly effective, moreover, the response of governments and international organizations must encourage and engage the participation of all aspects of civil society in a common endeavor.

In recognition that the design of effective strategies and policies to respond to the human security challenges of the crisis requires a comprehensive and accurate picture of its current and likely impact, the first session of the conference was dedicated to providing such a baseline assessment. For this purpose, a background paper summarizing publicly available materials on the social consequences of the crisis for the region as a whole—perhaps the first such undertaking—was commissioned and presented. Though unavoidably a “snapshot” of a complex and still unfolding situation, it is readily apparent from the background paper that the Asian economic crisis has had a profound effect on the living standards of millions in the region aggravating, as a consequence, existing social strains and vulnerabilities.

The human impact of the crisis is evident in many areas: falling real incomes and rising incidence of poverty; increasing levels of unemployment and underemployment; socially destabilizing migration flows; food shortages and malnutrition; declining public health; reduced education coverage; and increasing incidence of crime including domestic violence. These effects are most acute in Indonesia, which is experiencing considerable social and political instability largely as a consequence, while being severe in Thailand, Korea, and Malaysia. The Philippines has been less affected though the situation may be deteriorating. Within these countries, the hardest hit have typically been the most vulnerable groups in society, notably women and children. Few if any social safety nets exist to support them and help relieve their plight.

Left unattended, the socio-economic problems caused by the crisis could have more fundamental consequences in that they may impede the speed and quality of the recovery, cause destabilizing schisms to open within and between countries, and undermine the long term health, educational, and employment prospects of many throughout the region. In short, the stakes are enormous.

In assessing the role that intellectual dialogue can play in meeting the human security challenges generated by the crisis, the second session highlighted many important—indeed critical—contributions. In the abstract, intellectual dialogue helps promote good public policy decision making on complex societal problems (through objective research and rigorous analysis of competing policy options); stimulate new ideas drawing on multinational and multidisciplinary backgrounds; propagate knowledge of “best practices” for dealing with common problems; promote mutual understanding and with it mutual confidence; and, more generally, build communities with shared aspirations and values.

In the current Asian context, intellectual dialogue is seen by many to be especially important. More specifically it can provide analysis of the challenges facing the region and how it should cope with the problems of globalization including early warning of potential future crises; help compensate for the inadequate resources and short-term orientation of many governments; challenge the prevailing dogma and closed nature of public policy making in certain countries and institutions by encouraging alternative information sources and independent analytic capabilities; raise the intellectual standards of the region as a whole and make it less dependent on the advice of outside experts; generate the necessary consensus and legitimacy for key policy initiatives; and foster a compelling, imaginative vision for the future along with a detailed “road map” or program of action.

The principal underlying themes of the first two sessions featured prominently in a second keynote address to the conference by H.E. Dr. Surin Pitsuwan, Minister for Foreign Affairs of Thailand. Arguing that “we in Asia must together pool our knowledge and wisdom” to overcome the formidable challenges presented by the crisis, Foreign Minister Surin called for “an open-hearted as well as an open open-minded dialogue.” In the short term this requires the creation of adequate social safety nets to protect the unemployed, the poor, and the marginalized in society. More fundamentally, however, it requires shedding the past fixation with growth rates as the primary standard of progress and the adoption of a more “holistic” conception of human development. Moreover, with its considerable resources, Japan can play a leading role not only in stimulating the recovery of the region but also in promoting a more human centered approach.

Many of these observations were echoed in the third session focusing on the role of governments, international organizations, and civil society. Here there was general agreement that the crisis provides both challenges and opportunities for Asia. Concrete measures were discussed in two general areas. The first entailed regional macro-economic initiatives to spur recovery and reduce the vulnerability of Asia to destabilizing events in the future. This included holding more diverse “baskets” of reserve currencies, establishing a regional monetary fund to stimulate growth similar in effect to the Marshall Plan, promoting better regional consultation and coordination mechanisms, employing exchange rate “bands” and capital flow constraints, the development of regional capital markets and indexed bonds, and fundamental economic restructuring.

The second broad area for initiative entails promoting and harnessing the activities of key elements of civil society—NGOs, the media, academia, religious groups, community groups, and philanthropic organizations. This requires the development of new partnerships with governments and international organizations to provide the overarching framework and underlying infrastructure for civil society to flourish in an independent, responsible and above all, socially productive fashion. While some voiced concern over issues of accountability and responsibility in the actions of civil society groups, the consensus was that they have an increasingly vital role to play and can complement and sometimes even substitute for government action.

In the concluding session, attention turned to the future beyond the current crisis and specifically the goal of building a better Asia. Considerable hope was voiced that the region can regenerate itself and reemerge, if anything, strengthened from its ordeals. This will require a willingness to reflect on and learn from the past, the adoption of new practices and new priorities particularly a commitment to good governance, greater transparency, broader public participation, and concern for human security. Every effort should also be made to enhance the capabilities of people and sustain their confidence in a brighter future. These efforts can build upon the region’s inherent strengths and be further nurtured by a compelling vision of its place in the world. Thus, rather than succumbing to pessimism and retrenchment, the region should boldly press ahead in the development of regional cooperation and institution building.

All this represents an ambitious undertaking that will demand intellectual input of the highest caliber. For this reason further dialogue and exchange has an indispensable part to play in Asia’s future. In this spirit, participants expressed the hope that a follow-up conference to this meeting would be convened in the near future, preferably in an ASEAN country.

(Provisional Translation)

Distinguished guests, Ladies and Gentlemen:

It is a great honor for me to be here today at this Intellectual Dialogue on Building Asia’s Tomorrow and I am very pleased to see that we have with us today so many of Asia’s intellectual leaders. I wish to extend my sincerest gratitude to the staff of the Japan Center for International Exchange, headed by Mr. Tadashi Yamamoto, and the Institute of Southeast Asian Studies, Singapore, under Ms. Chia Siow Yue, for their dedicated efforts to organize this meeting. I am also privileged to be able to welcome H. E. Mr. Surin, Minister for Foreign Affairs of the Kingdom of Thailand, and the other participants to this meeting who have come from such great distances to join us and that despite their busy schedule.

Last May as the foreign minister of Japan, I made a policy speech in Singapore on the future outlook of Japan and East Asia. In my speech, I stressed the need for intellectual interaction within the region to help make the 21st century a “century of peace and prosperity.” As a first step, I proposed the holding of this Intellectual Dialogue on Building Asia’s Tomorrow.

The fact that the economic crisis we are still going through spread so rapidly throughout East Asia only a few months afterwards showed clearly the depth of interdependence among the countries in Asia and in the international community. I proposed this kind of meeting for intellectual dialogue because I strongly felt the need for us to mobilize the diverse intellectuel assets and resourcefulness of each country for the peace and prosperity of the Asian region.

In my speech in Singapore, I proposed five key elements as Obuchi’s version of the essential Five C’s for overcoming Asia’s economic difficulties. Those five C’s are: Courage, Creativity, Compassion, Cooperation, and Confidence. These elements are based on my view point which attaches great importance to a human-centered approach to the crisis. As the recent Nobel Prize winner in economics, Professor Amartya Sen from India, pointed out, “the process of development is not primarily one of expanding the supply of goods and services but of enhancing the capabilities of people.”

An unavoidable fact is that Asia’s remarkable economic development in recent years also created social strains. The current economic crisis has aggravated those strains, threatening the daily lives of many people. Taking this fact fully into consideration, I believe that we must deal with these difficulties with due consideration for the socially vulnerable segments of population, in the light of “Human Security,” and that we must seek new strategies for economic development which attach importance to human security with a view to enhancing the long term development of our region. At this year’s ASEAN Post-Ministerial Conference in July, Foreign Minister Surin, whom, as I said, we are very pleased to have with us today, proposed the organizing of an ASEAN-PMC Caucus on Social Safety Nets. I believe the basic thinking behind his proposal is very similar to mine.

“Human Security” is the theme of today’s dialogue. It is my ardent wish that creative intellectual interactions emerge in this area, as they involve many urgent issues, and that wise leadership will be exercised and lead to overcoming the current crisis.

Allow me to make use of this opportunity to share with you, distinguished audience, my views on “Human Security.”

In our times, humankind is under various kinds of threats. Environmental problems such as global warming are grave dangers not only for us but also for future generations. In addition, transnational crimes such as illicit drugs and trafficking are increasing. Problems such as the exodus of refugees, violations of human rights, infectious diseases like AIDS, terrorism, anti-personnel landmines and so on pose significant threats to all of us. Moreover, the problem of children under armed conflict ought never to be overlooked.

It is my deepest belief that human beings should be able to lead lives of creativity, without having their survival threatened nor their dignity impaired. While the phrase “human security” is a relatively new one, I understand that it is the key which comprehensively covers all the menaces that threaten the survival, daily life, and dignity of human beings and strengthens the efforts to confront those threats.

Since many of the problems affecting human security cross national borders, no country can solve such problems alone. The co-ordinated action of the international community is necessary. Moreover, since these problems directly affect the rives of human beings, and since it is this area where the activities of citizens through NGOs and others are most effective, it is important for governments and international organizations to strengthen the linkages and cooperation with citizen’s activities to cope with such problems.

To support Asian countries in this economic crisis, we have pledged and steadily implemented contributions on the largest scale in the world. With Human Security in mind, we have given, as one of the most important pillars of our support, assistance to the poor, the aged, the disabled, women and children, and other socially vulnerable segments of population on whom economic difficulties have the heaviest impacts.

Ladies and Gentlemen:

I believe we should make the 21st century a human-centered century. This has always been my basic idea in my diplomatic activities. In order to build such future, that is to say such a “tomorrow,” the most important thing is for the intellectuals to gather by crossing national borders and sharing their confidence in the future based on common aspirations emerging from their intellectual dialogue.

Rich in human resources, abundant in potentials, Asia has sufficient capability to overcome the current crisis and to develop further. I’m confident of this. The hope which Asia would generate in the process of overcoming our present difficulties might be an excellent example for the future of the international community as a whole.

The establishment today of a new forum for intellectuel interaction towards Asia’s tomorrow is exceptionally significant. I sincerely hope that these efforts will continue. The Government of Japan intends to continue to support them as far as possible.

To conclude my remarks, I would like to express my heartfelt wish that the discussions in this intellectual dialogue be fruitful ones and serve as a bridge as we proceed toward the Asia’s Tomorrow.

Thank you very much for your kind attention.

Excellencies,

Distinguished Participants,

Ladies and Gentlemen,

Friends and Colleagues,

I must admit that when I received the invitation to attend and address this important conference, I accepted with much pleasure but also with some trepidation. I was pleased because Prime Minister Obuchi’s initiative for the holding of the conference could not have come at a more timely and crucial moment, given the pressing challenges we in Asia are facing. Especially, the focus of this meeting would be on the social impact of the present economic crisis on the rives and livelihood of millions of people in our region—an issue which I have been deeply concerned about and I am sure all of us as well.

And yet, in coming here I also had some trepidation because talking about the future always has its inherent risks particularly in these times of change and uncertainties. And also because I knew that what I have to say today will have to measure up to the wisdom of the leading minds gathered here in Tokyo for this conference. For, as we all have witnessed, it is the power of the human intellect and the power of ideas and knowledge that have been the well spring of much of the progress and prosperity that our nations and mankind as a whole have come to enjoy and, I believe, at times, take for granted.

Excellencies,

Ladies and Gentlemen,

It has been over 50 years since the tragedy of war befell on Japan, Asia and much of the world, bringing in its wake great suffering, miseries, consternation and suspicion. With the end of the war, we have put the past behind us and set ourselves to the task of rebuilding our nations and our relations. And within a period of decades, Japan and much of East Asia have achieved a feat that took many other nations centuries to accomplish. But, unfortunately, as we have found out the hard way, success often breeds complacency. Now we are faced with a crisis of a scale and magnitude unprecedented in our recent history. Optimism and confidence have given way to pessimism and self-doubt.

Now, more than ever, we in Asia must together pool our knowledge and wisdom as we come to grips with the formidable challenges confronting us—challenges that bear upon the future of Asia, our own future and that of generations to come.

We must ask ourselves what went wrong and what are the lessons that we have learnt? For Asia is once again in the midst of a major transition and transformation. The financial crisis is but a prelude.

Whether Asia can reemerge with renewed confidence and vigor shall depend on whether we are able to seize the opportunities arising out of the present challenges in order to correct our past mistakes and build a stronger foundation for the Asia of tomorrow. It shall depend on us keeping the faith and having the courage and wisdom to make the right choices and the right decisions, however difficult they may be.

To be sure, the challenges that confront us are daunting and manifold. The challenge of the current financial crisis, the challenge of our interdependence, the challenge of economic integration, the challenge of technological change, the challenge of rising expectations of our peoples and the challenge of protecting the environment. How we respond to these challenges will go a long way towards determining Asia’s tomorrow.

For sure, there are no easy answers or solutions to these challenges both of today and tomorrow. For Asia itself defies any sweeping generalization, given its diversity, and vastness. But in the midst of such great diversity, we in Asia have found our fate and destinies increasingly intertwined. Together, we need to work towards our common aspirations. And together, we need to be guided and inspired by a common vision of the future.

Defining the vision of the future of Asia in itself will be a struggle of ideas. For there are extremists on both sides. On the one hand, there are those who see themselves as the vanguard of the established order and have sought to defend the status quo at all costs. There are also those who are defiant in their belief in the supremacy of the so-called “Asian values” over the so-called “Western values”.

On the other extreme end, there are those who seek to break with the past and start anew and who see traditional “Asian values” as antiquated and have zealously embraced the Western way, lock, stock and barrel.

In any struggle of ideas in human history, accommodation must be found, flexibility must be present. All of us stand to lose if we allow extremism to win the day over reason, moderation and tolerance. For in the end, the way forward requires continuity and change, cooperation, permutation of ideas and enlightened leadership.

So instead of engaging in a win-all or lose-all debate, we need, more than ever, to have an open-hearted as well as an open-minded dialogue on the issues that unite us rather than the issues that divide us. For at the end of the day we will find that our goals and aspirations are one and the same: Common prosperity based on the fullest realization of all our human potential and dignity.

Excellencies,

Ladies and Gentlemen,

In looking to the future, I do not profess to have all the answers. But I believe that what has become apparent in the midst of the current economic turmoil is that while our success was real indeed, much of it rested on fragile foundations. Our economies grew by leaps and bounds. Much of it was due to the influx of investments, capital and management from Japan in particular, but also from Europe and America. Factories were relocated and production lines were transferred. We touted the abundance of our resources and our lower wages. We gave inadequate attention to the preservation of our environment. We embraced free markets and globalization with open arms with minimal supervision and discipline. In our rush to catch up, we became fixated on growth rates and on the façade of progress and prosperity . And in the end we became victims of our own success.

In my opinion, the origin of the current financial and economic crisis is deeply rooted in our socio-political structure. It is indeed a systemic problem. For we have equated order, stability and continuity with growth. And we assumed that prosperity achieved as a consequence of that system is to be sustained. In the end, it has proven to be an illusion and a fragile bubble of growth.

For everything was fine as long as our economies kept growing. Now with the crisis our excesses, our weaknesses and our deficiencies have been exposed. And without growth, legitimacy and justification for leadership are undermined. We now hear the yearning for reform, for greater democracy and for wider participation of our peoples in the political and economic processes.

The current economic crisis has subjected us to a rude awakening. For, in the final analysis, real and sustained development must rest on a solid foundation of the development of our human potential. The fruits of development must trickle down and uplift all in our society.

The ever-changing and rising skyline in our Bangkok metropolis should never be mistaken for real development. If we fail in our tasks to address the untold sufferings and miseries arising from the current economic crisis, we are indeed sowing the seeds for future instability. Rising unemployment, social dislocation and unrest invite a social implosion that can only lead to total insecurity of the entire region. That was the rationale behind my proposal for the Caucus for Social Safety Nets at the ASEAN Ministerial Meeting and the Post Ministerial Conference in Manila last July, referred to by Prime Minister Obuchi this morning.

In these difficult times as we focus on the immediate tasks of economic recovery, the need for adequate social safety nets—to protect the unemployed, the poor and the marginalized—assumes even greater urgency. But it would be a terrible disservice and demeaning to our peoples if we think of social safety nets solely in terms of hand outs. For real human security—the real social safety net—is human development, holistic human development. Intelligence, and equal access to opportunities are the best insurance against future calamities.

Caring for and the development of our human resources—our most precious asset—or, to put it simply, helping them to help themselves constitute the most important investment that we can make for our own future and shall help enable us to emerge from the present crisis on to the path of stronger, more disciplined and sustained growth.

Indeed, the call for democracy and human rights that resonates in each of our nations is not meant as an end in itself. It is rather because when people are free to express their will, to decide what kind of government they want and to engage in the business enterprise that suits their talents, then society as a whole benefits. Political and economic liberalization unleashes the forces of knowledge, creativity and opportunities that shall propel our nations forward towards a brighter tomorrow.

Excellencies,

Ladies and Gentlemen,

The pressing need for human security, the desire for equality and social justice and the call for greater accountability and transparency in the way we manage our economy and conduct our politics are challenges that are not only confined to any one nation. They are the challenges of the 21st Century. And they are the challenges that we in Asia face together and we can not simply wish them away. Our peace and prosperity have become too intertwined and indivisible for us to seek our salvation alone in isolation. We simply can not close ourselves from the forces of globalization that have transcended our borders and touched our shores. We can not turn back the dynamics and imperatives of globalization.

To be sure, we must protect and conserve the traditions and values that reflect the best of our societies. But, at the same time, we must keep up with the rapid pace of change. We must adapt and adjust in order to muster the ever mounting forces of globalization to our maximum advantage or otherwise we will run the risk of being engulfed by the tsunamis of on-rushing tides.

And above all, we in Asia need to have a common mission and a common vision in meeting these challenges. We need to work together in order to march forward into the 21st Century together. And, indeed, this is our tasks here in this room at this conference—to define that vision. No doubt, the pace will differ from country to country because circumstances are not the same in every society. We all must lend a helping hand to those in need. On the other hand, we cannot sit still and take comfort behind the status quo or continue to do business as usual. We all must be prepared to adjust ourselves and accommodate the pressures and demands of the changing times.

The tasks of shaping the future of Asia will of course fall on some more than others. Just as Japan helped fuel and inspire our past success, Japan can now help set the pace and provide a model by virtue of her own on-going reforms. Japan, with its resources and experiences born out of its hard-earned success, can help answer the needs for social safety nets and human resource development of countries in the region, as emphatically reiterated by Prime Minister Obuchi in his opening speech this morning.

If, as the legend goes, the sun rises in Japan, it is for Japan to radiate warmth, compassion and leadership. This initiative of Prime Minister Obuchi confirms Japan’s willingness and readiness to play that role.

What is more, the tasks at hand will also require the building of a new generation of leaders who are conscious of hard-earned achievements of past struggles and, at the same time, open to new ideas and ready to reach out beyond one’s borders to cooperate with those sharing common aspirations for the future. The younger generation must be inspired. And they are inspired. We in the present generation must make sure that they are connected in an ever widening network of youthful enthusiasm and exuberance for a brighter future.

For, indeed, Asia as a whole has the momentum to move forward. The deep roots of our history, the richness of our cultures, the wealth of knowledge that we have accumulated and the progress that we have achieved so far are testaments that we certainly do not lack the individual and collective ingenuity and the strength to take charge of our own destiny.

As we set our sight to Asia’s tomorrow, we need to think in terms of shared prosperity with a human face. We need to think of development with compassion. As we in Asia seek to recover from the economic crisis, we shall need to, draw strength from one another to create a synergy that would light up the way towards Asia’s renewal.

Excellencies,

Ladies and Gentlemen,

In this age of globalization and interdependence, no one nation or people can stand alone on the island of prosperity in a sea of turmoil. We either survive together or we risk being overwhelmed by the rising tides of popular discontent and unfulfilled aspirations.

We are grateful that you here in Japan regard our misfortune as your own. This gathering is a clear testimony of your concern and cognizance of the words of a 17th Century English transcendental poet, John Dunn, who admonished us over three centuries ago when he said:

No man is an island, entire of itself; everyman is a piece of the continent, a part of the main; if a clod be washed away by the sea, Europe (or Asia) is the less,…any man’s death diminishes me, because I am involved in mankind; and therefore never send to know for whom the bell tolls: it tolls for thee.

Thank you