Financial Crisis Coordination a Must for ASEAN leaders

The leaders of Southeast Asia had mentioned last Sunday that they are pledging their support for the stimulus plans which will oppose protectionism. They also agree on the fact that it will require the coordination of policies in order to address the issue of an ever-deepening global crisis which has resulted in the battering of their economy. There are ten leaders who are members of the ASEAN, or the Association of South East Asian Nations. These leaders had not yet spelled out any sort of action which their group would take in order to address the problem. All these and more were evident in the statement of the chairman which was issued right after their last summit help in Hua Hin seaside resort in Thailand.

An Arsenal of Plans

The leaders also say that they fully endorse and support much expansionary policies which also include several fiscal stimulus plans, access to both credit as well as trade financing, monetary easing and other measures which can stimulate the domestic demand. The Asian economy is dependent on export and everything is worsening because more and more consumers and companies are cutting back because of the global downturn. Singapore, for example, has been in recession for some time now. More economists are saying that Malaysia as well as Thailand is also right on the brink of recession. Indonesia meanwhile experienced the slowing of growth to the weakest pace close to two years now.

Announcement of Stimulus Plans

A lot of countries in the South East Asian region have begun announcing their stimulus plans in an effort to repair the economic damage done by the recession. However, exporters will not be able to stage any sort of major recovery unless consumers who are in the Western region will begin their spending again. Their leaders have also agreed to work and stand really firm against the issues of protectionism as well as refraining from introducing or putting up new trade barriers. They are also calling for bold as well as urgent reform in order to address this international financial problem, according to the statement.

Abhisit Vejjajiva, the Prime Minister of Thailand, also said that they will be undergoing severe testing now as a country as well as a member of the Asian region. He goes on further to say that because the financial crisis is ever-deepening, the entire world will be forced to look at their region in expectation of action as well as confidence. The ASEAN has already begun the take action starting with the summit held in Thailand. It has already implemented a roadmap which will thereby turn around what was once a consensus-based grouping into one economic community built up of five hundred seventy million people as well as the combination of two trillion dollars in gross domestic product for six whole years.