Joint Action for ASEAN Leaders to Resolve Crisis

Joint Action for ASEAN Leaders to Resolve Crisis
The leaders of the South East Asian nations were called last Sunday in order to come up with highly coordinated policies as well as joint actions to resolve the effect of the global economic crisis at their regional level. They are required to deal with this ever-worsening economic situation which has been constantly causing harm on their economies. However, no actual word regarding the particular manner of attack on this problem has been made by the group.

Welcoming New Policies in SE Asia

The Association of Southeast Asian Nations, or the ASEAN, has also been very vocal regarding its openness to any new policies that are expansionary and macroeconomic in nature. This also includes fiscal stimulus, better access to credit (including that of trade financing), monetary easing and other measures that will help support their private sector. All of these are just some ideas which they have regarding the improvement of domestic demand.

This was all released in a statement which will be fully issued when the April summit of the ASEAN nations comes to a close next month. By the end of the summit, according to the document, they will invariably stress the importance of putting the policies together as well as taking time out to make some joint actions which will help to mutually reinforce their positions at the regional level. The ASEAN, which is composed of ten nations, had not been able to give details regarding their specific policies or even actions at the regional level.

Slowing Growth

The economic growth of Asian nations is slowing down. This is because more and more companies as well as consumers continue to decline putting money out, which contributes to the worsening recession. In Southeast Asia alone, particular nations are already in distress. Singapore, one a powerhouse in Asia, has already claimed to be in recession and a lot of people are also saying that Indonesia’s growth has come to its slowest point in over two years. The Statement made by the ASEAN leaders when it comes to the financial crisis has a few points worth mentioning.

One, it has agreed to stand firm when it comes to the issue of protectionism and will avoid introducing new barriers to trade. Two, the leaders of the ASEAN have called for the reforms of the worldwide financial system so that it will take to heart the interests of many developing countries. Three, they have also urged the immediate coordination by both developed as well as developing countries in order to put a restoration on the financial stability of the region. And four, it will also welcome the promotion of financing for regional infrastructure by the new product of Asian Bond Markets Initiative Roadmap.