REGIONAL COOPERATION URGED

In the face of the spreading financial crisis, Wen vowed, China will continue to work with other Asian countries to actively tackle challenges and advance all-round cooperation with a view of enriching and energizing cooperation and promoting peace and prosperity in the region.

Leaders take a family photo before the opening plenary of Boao Forum for Asia (BFA) Annual Conference 2009 in Boao, a scenic town in south China's Hainan Province, April 18, 2009. The BFA Annual Conference 2009 opened in Sanya on Saturday with the theme of "Asia: Managing Beyond Crisis". [Xinhua photo]

"Asia is one of the most dynamic and promising regions in the world economy. Together, we take up 60% of the world's population, a quarter of the global economy and a third of global trade," Wen said.

When times get rough and emerging economies strive to maintain growth, the Asian ethic of "Prosper Thy Neighbor" is an imperative, said Fidel V. Ramos, BFA chairman of board of directors and former president of Philippines.

Asian emerging economies have been galloping in the past decades. In East Asia, China achieved spectacular growth in 30 years. In South Asia, India's software and automobile industries broke into to the world market. Asia is dubbed as the engine to drive forward the world economy.

The financial stress starting from developed countries has nonetheless challenged Asian countries. Sluggish exports, shrinking investment and demand, fewer jobs and lower income plagued many emerging economies.

In its latest forecast in March, the World Bank has lowered the estimated gross domestic product (GDP) growth of 20 East Asian and Pacific developing economies this year down by 1.4 percentage points to 5.3 percent.

However, China and some Asian emerging economies will take the lead in rebounding from the economic crisis, said Long Yongtu, secretary-general of Boao Forum for Asia.

"We should make greater efforts to promote free trade and expand intra-regional trade," Wen suggested.

He called on Asian countries to strengthen financial cooperation and maintain regional financial stability.

"We should accommodate each other's concern to the greatest extent possible, build consensus and establish a regional reserve pool as early as possible so as to better protect our region from financial risks," he said.

He suggested that investment cooperation be deepened to drive regional economic growth.

China has decided to set up a US$10-billion "China-ASEAN Fund on Investment Cooperation" to support infrastructure development in the region, according to Wen.

He called on Asian countries to advance "green" cooperation and promote sustainable economic growth in the region in energy conservation, environmental protection and development and utilization of new and renewable energies, while fostering new growth areas in the Asian economy.

HAVE A BIG SAY IN INTERNATIONAL AFFAIRS

Finally, Wen said, Asia should enhance collaboration and coordination in international affairs and promote world peace, stability and prosperity.

"We should advance reform of the international financial system, increase the representation and voice of emerging markets and developing countries, strengthen surveillance of the macroeconomic policies of major reserve currency issuing economies, and develop a more diversified international monetary system," he said.

To Asia, it is more practical to take two initiatives, according to Fan Gang, a leading Chinese economist. First, in the arrangement of international system, it should encourage the existence of and competition among multi currencies. Second, it should supervise the over issue of US dollar through international cooperation or the establishment of a certain consultation mechanism.

More than 1,600 political leaders, business people and academic scholars gathered in the island resort for the conference, which will conclude on Sunday.

Leaders attending the event include Iran's First Vice-President Parvis Davoodi, Myanmar's Prime Minister Thein Sein, Vietnam's Prime Minister Nguyen Tan Dung, Papua New Guinea's Prime Minister Michael Thomas Somare, Kazakh President Nursultan Nazarbayev, Pakistan's President Asif Ali Zadari, Albania's Prime Minister Sali Berisha, Mongolia's Prime Minister Sanj Bayar, and New Zealand's Prime Minister John Key.

Delegates have discussed the effect of the crisis on Asia, the steps taken by Asia to weather the challenges effectively, the role of emerging economies in reforming the global financial system, and the balance between financial regulation and innovation.

BFA was established in 2001 as a platform for high-level interaction between political and business leaders from Asia and around the world. It is aimed at promoting the development goals of Asian countries through greater regional economic integration.

(Xinhua News Agency April 18, 2009)